1 00:00:09,840 --> 00:00:12,600 Speaker 1: Hi, and welcome back to another new episode of You 2 00:00:12,640 --> 00:00:15,440 Speaker 1: Need Therapy. My name is Kat and I am the host, 3 00:00:15,600 --> 00:00:17,880 Speaker 1: and I'm so glad you're here. As always if you're new, 4 00:00:18,000 --> 00:00:21,000 Speaker 1: I'm also especially really excited and happy and glad that 5 00:00:21,000 --> 00:00:23,520 Speaker 1: you're here. Before we get started and talk about the 6 00:00:23,560 --> 00:00:26,960 Speaker 1: episode today, I always like to start off by saying 7 00:00:27,240 --> 00:00:29,960 Speaker 1: that yes, I'm a therapist, and yes this podcast is 8 00:00:30,000 --> 00:00:34,200 Speaker 1: called You Need Therapy, and this is not therapy or substitute. 9 00:00:34,479 --> 00:00:37,560 Speaker 1: You just simply cannot do therapy over a podcast. So 10 00:00:37,880 --> 00:00:41,040 Speaker 1: this might lead you to getting some help in regards 11 00:00:41,040 --> 00:00:43,120 Speaker 1: to something that you might uncover by listening to this, 12 00:00:43,240 --> 00:00:46,479 Speaker 1: but it is not therapy in itself. So let's talk 13 00:00:46,479 --> 00:00:49,159 Speaker 1: about today's episode. I have a friend of mine on 14 00:00:49,280 --> 00:00:52,640 Speaker 1: to talk about something that might seem to be a 15 00:00:52,680 --> 00:00:55,760 Speaker 1: little bit like weird or odd as a topic for 16 00:00:55,800 --> 00:00:58,880 Speaker 1: this podcast, but actually it really isn't and we tell 17 00:00:58,920 --> 00:01:02,040 Speaker 1: you why that is in our conversation, so I'll save 18 00:01:02,040 --> 00:01:03,800 Speaker 1: that so you don't have to hear it twice. But 19 00:01:03,880 --> 00:01:07,240 Speaker 1: my guest name is Nathan Green, and along with me 20 00:01:07,360 --> 00:01:10,240 Speaker 1: one of my friends, he is a certified financial planner 21 00:01:10,319 --> 00:01:13,720 Speaker 1: and he's the principle of Karen Financial Group, which says company. 22 00:01:13,760 --> 00:01:17,360 Speaker 1: He has over ten years of experience in this industry 23 00:01:17,400 --> 00:01:20,040 Speaker 1: and working in financial planning and all of that stuff. 24 00:01:20,080 --> 00:01:22,479 Speaker 1: And one of the things I really really value about 25 00:01:22,600 --> 00:01:26,120 Speaker 1: him and appreciate about him is that his work and 26 00:01:26,160 --> 00:01:29,319 Speaker 1: what he does and how he runs his business is 27 00:01:29,640 --> 00:01:33,399 Speaker 1: kind of guided by the idea that he's helping people 28 00:01:33,720 --> 00:01:36,600 Speaker 1: meet their own goals, whatever those goals are, and not 29 00:01:36,800 --> 00:01:39,600 Speaker 1: the goals that he thinks are best for a generalized population. 30 00:01:39,760 --> 00:01:42,160 Speaker 1: And I think that's really cool. We actually talk about 31 00:01:42,240 --> 00:01:44,920 Speaker 1: that in our conversation, so you'll hear more about why 32 00:01:44,959 --> 00:01:48,200 Speaker 1: and how that works. So Nathan graduated from Auburn University 33 00:01:48,280 --> 00:01:51,920 Speaker 1: and now actually teaches at a couple universities along with 34 00:01:51,920 --> 00:01:54,800 Speaker 1: owning his own company, which I think is so cool, 35 00:01:55,040 --> 00:01:57,760 Speaker 1: and I've told him that so many times. I sometimes 36 00:01:57,760 --> 00:02:01,440 Speaker 1: like daydream about teaching a course at a university, maybe 37 00:02:01,440 --> 00:02:04,120 Speaker 1: even the one that I graduated from one day. I 38 00:02:04,120 --> 00:02:05,840 Speaker 1: don't know. I don't have the time to do it now, 39 00:02:05,880 --> 00:02:08,239 Speaker 1: but I love teaching, obviously, it's part of the reason 40 00:02:08,320 --> 00:02:10,280 Speaker 1: we have this podcast. So he does that, which I 41 00:02:10,280 --> 00:02:14,000 Speaker 1: think is awesome, and really I just like respect the 42 00:02:14,000 --> 00:02:16,240 Speaker 1: heck out of him, not just when it comes to 43 00:02:16,680 --> 00:02:19,880 Speaker 1: career and his knowledge about money and finances. He's just 44 00:02:20,000 --> 00:02:23,040 Speaker 1: like a really good human and one that I have 45 00:02:23,520 --> 00:02:27,200 Speaker 1: really come to value having in my life. So along 46 00:02:27,200 --> 00:02:29,239 Speaker 1: with the knowledge that he brings to us, he's also 47 00:02:29,360 --> 00:02:32,680 Speaker 1: just bringing like a good kind, caring energy that's like 48 00:02:32,960 --> 00:02:35,480 Speaker 1: nice to be around, you know. So if you want 49 00:02:35,480 --> 00:02:37,959 Speaker 1: to connect with Nathan and yourself after hearing him talk, 50 00:02:38,160 --> 00:02:40,640 Speaker 1: you can find him by heading to his website, which 51 00:02:40,720 --> 00:02:45,079 Speaker 1: is www dot Karen C A I R n f 52 00:02:45,440 --> 00:02:48,480 Speaker 1: G dot com and I will put all the links 53 00:02:48,480 --> 00:02:50,520 Speaker 1: that you need to find him in the show notes 54 00:02:50,680 --> 00:02:52,840 Speaker 1: that you can just click on. He also talks about 55 00:02:52,840 --> 00:02:54,360 Speaker 1: how you can follow him on Twitter at the end 56 00:02:54,400 --> 00:02:56,560 Speaker 1: of this even though I don't think his account is 57 00:02:56,639 --> 00:02:59,079 Speaker 1: very active, but you know, give him a follow and 58 00:02:59,280 --> 00:03:02,400 Speaker 1: uh maybe he'll start posting on there. So I just 59 00:03:02,440 --> 00:03:05,360 Speaker 1: want to say thank you Nathan for being yourself in 60 00:03:05,960 --> 00:03:08,320 Speaker 1: all of the ways, and thank you for coming and 61 00:03:08,360 --> 00:03:11,720 Speaker 1: having this conversation. I also want to just put in 62 00:03:11,800 --> 00:03:16,799 Speaker 1: this quick disclaimer on Nathan's behalf before I introduce our conversation, 63 00:03:17,160 --> 00:03:21,440 Speaker 1: and all investment advisory services are offered by the Karen 64 00:03:21,520 --> 00:03:26,120 Speaker 1: Financial Group, a state registered investment advisor. All information discussed 65 00:03:26,120 --> 00:03:29,040 Speaker 1: today is general in nature and does not represent a 66 00:03:29,080 --> 00:03:34,000 Speaker 1: recommendation or investment advice. So disclaimer from Nathan. My disclaimer 67 00:03:34,080 --> 00:03:36,720 Speaker 1: is this is not therapy. And now that we have 68 00:03:36,840 --> 00:03:39,680 Speaker 1: that out of the way, I would like to introduce 69 00:03:39,880 --> 00:03:45,600 Speaker 1: my conversation with my good friend Nathan. Okay, guys, welcome back. 70 00:03:46,160 --> 00:03:49,040 Speaker 1: I have I always say this, and I need to 71 00:03:49,080 --> 00:03:51,120 Speaker 1: think of something better to say. Maybe you can help me. 72 00:03:51,520 --> 00:03:55,360 Speaker 1: I always want to say I have another exciting I 73 00:03:55,400 --> 00:03:58,000 Speaker 1: always want to say, like, I have another exciting episode, 74 00:03:58,000 --> 00:04:00,080 Speaker 1: but then every week I say the same thing, so 75 00:04:00,120 --> 00:04:02,040 Speaker 1: I think it waters it down. But I have an 76 00:04:02,040 --> 00:04:04,720 Speaker 1: exciting episode with an exciting guest because I have my 77 00:04:04,760 --> 00:04:07,880 Speaker 1: friend Nathan Green here, Hello, Hello, and we are going 78 00:04:07,920 --> 00:04:09,920 Speaker 1: to talk about something that might seem a little bit 79 00:04:10,040 --> 00:04:13,040 Speaker 1: off or like, wait a second, I thought this was 80 00:04:13,080 --> 00:04:15,640 Speaker 1: a mental health podcast. Just a little bit, what is 81 00:04:15,640 --> 00:04:17,960 Speaker 1: it off the grid? Does that fit outside the box? 82 00:04:18,000 --> 00:04:20,400 Speaker 1: Outside the box? There we go. We're gonna talk about money. 83 00:04:20,640 --> 00:04:23,000 Speaker 1: And I wanted to do this because one, I'm just 84 00:04:23,080 --> 00:04:25,800 Speaker 1: interested in it, and because this is my podcast. Sometimes 85 00:04:25,800 --> 00:04:27,480 Speaker 1: I just get to do things that I'm interested in, 86 00:04:27,600 --> 00:04:31,800 Speaker 1: and also because I think that there is an essence 87 00:04:32,040 --> 00:04:36,839 Speaker 1: of psychology and just mental health and awareness around money 88 00:04:36,920 --> 00:04:40,919 Speaker 1: because historically it is something that we just don't speak about. 89 00:04:41,120 --> 00:04:43,920 Speaker 1: So you introduced this as an exciting episode, and then 90 00:04:43,960 --> 00:04:47,360 Speaker 1: you went on to disprove your claim. Hi, this is 91 00:04:47,360 --> 00:04:50,120 Speaker 1: going to be an episode about not exciting. I don't 92 00:04:50,120 --> 00:04:52,560 Speaker 1: think many people get excited about money unless it's like, Hi, 93 00:04:52,720 --> 00:04:56,000 Speaker 1: here's a big check. We're gonna yeah, but you might 94 00:04:56,080 --> 00:04:59,440 Speaker 1: learn something then maybe you'll make a bunch of money. 95 00:05:00,120 --> 00:05:03,719 Speaker 1: That's that's right. Those are the dots. Everybody up, because 96 00:05:04,000 --> 00:05:05,960 Speaker 1: here's the thing. We're going to talk about some things 97 00:05:06,000 --> 00:05:08,520 Speaker 1: that I bet a lot of you guys have asked 98 00:05:08,640 --> 00:05:11,120 Speaker 1: or wondered, but you actually haven't like asked or wondered 99 00:05:11,160 --> 00:05:15,640 Speaker 1: out loud. So I think that's exciting. I'm gonna I'm 100 00:05:15,680 --> 00:05:19,080 Speaker 1: gonna ask the questions that maybe somebody else is afraid 101 00:05:19,120 --> 00:05:21,160 Speaker 1: to ask, and you're gonna be like, thank god she 102 00:05:21,279 --> 00:05:24,159 Speaker 1: asked that, and thank god I kept listening. It so exciting. 103 00:05:24,240 --> 00:05:26,559 Speaker 1: I'm here for that. Okay. So I want to start 104 00:05:26,880 --> 00:05:29,400 Speaker 1: talking about like why we don't talk about money, and 105 00:05:29,440 --> 00:05:31,560 Speaker 1: I have my own feelings and I want you to 106 00:05:31,600 --> 00:05:33,800 Speaker 1: share your feelings if you have them, and if they 107 00:05:33,920 --> 00:05:36,000 Speaker 1: are different, because I think this is the issue that 108 00:05:36,080 --> 00:05:38,200 Speaker 1: we just don't speak about it, so we don't know 109 00:05:38,320 --> 00:05:40,120 Speaker 1: about it, and we don't know about something, then we 110 00:05:40,160 --> 00:05:42,680 Speaker 1: don't speak about it more. I think for me, it 111 00:05:42,760 --> 00:05:45,280 Speaker 1: stems from like the idea that talking about money is 112 00:05:45,320 --> 00:05:48,080 Speaker 1: like rude or impolite. I think impolite is the better word. 113 00:05:48,160 --> 00:05:52,120 Speaker 1: Like speaking about money and talking about having money or 114 00:05:52,200 --> 00:05:55,680 Speaker 1: not having money, or how much something cost, or any 115 00:05:55,760 --> 00:05:58,960 Speaker 1: of that just was talked about or put in this 116 00:05:59,120 --> 00:06:02,520 Speaker 1: box of like, oh, don't do that, that's impolite. Maybe 117 00:06:02,560 --> 00:06:04,480 Speaker 1: it's just talking about how much you make. Then we 118 00:06:04,600 --> 00:06:07,760 Speaker 1: put the whole category of money into that box. And 119 00:06:07,839 --> 00:06:10,320 Speaker 1: so I don't ask questions about anything because I just 120 00:06:10,640 --> 00:06:12,880 Speaker 1: I just put everything together. And I will say I 121 00:06:12,960 --> 00:06:15,159 Speaker 1: also think that I might be getting ahead of myself, 122 00:06:15,400 --> 00:06:17,600 Speaker 1: but I think that if we take this even a 123 00:06:17,640 --> 00:06:22,040 Speaker 1: step farther, I'm a female, and I think that culturally, 124 00:06:22,440 --> 00:06:24,960 Speaker 1: um women are supposed to be polite, like we're taught 125 00:06:25,000 --> 00:06:28,159 Speaker 1: to be polite. We also, I think we double don't 126 00:06:28,200 --> 00:06:31,039 Speaker 1: talk about it. And then I think when we get older, 127 00:06:31,400 --> 00:06:33,200 Speaker 1: when we're younger, we can get that's not that big 128 00:06:33,200 --> 00:06:36,480 Speaker 1: of a deal. We get older, I remember learning about like, okay, 129 00:06:36,480 --> 00:06:38,080 Speaker 1: when you get your first job, and they gave us 130 00:06:38,200 --> 00:06:41,160 Speaker 1: this talk about like negotiation and I was like, oh, 131 00:06:41,240 --> 00:06:44,960 Speaker 1: I'm not going to do that. Yeah, I'm not negotiating 132 00:06:45,080 --> 00:06:47,760 Speaker 1: my salary. Are you kidding? Mean? And it's like, yeah, 133 00:06:48,120 --> 00:06:49,920 Speaker 1: we can. There's a probably a couple of camps we 134 00:06:49,960 --> 00:06:52,280 Speaker 1: can sit out in. And of why that's tough, and 135 00:06:52,360 --> 00:06:54,520 Speaker 1: I think part of it is that I really do 136 00:06:54,640 --> 00:06:56,760 Speaker 1: think this. I think part of it is that if 137 00:06:56,920 --> 00:06:59,280 Speaker 1: I'm supposed to be, if I'm taught to be polite 138 00:06:59,800 --> 00:07:02,520 Speaker 1: and talking about money is impolite, and I'm trying to 139 00:07:02,680 --> 00:07:06,520 Speaker 1: ask for more money. One, it's rude to talk about money, 140 00:07:06,680 --> 00:07:08,840 Speaker 1: and too, I should just be grateful for what they 141 00:07:08,920 --> 00:07:11,160 Speaker 1: offer me, and that can lead us down a trail 142 00:07:11,200 --> 00:07:12,960 Speaker 1: of like what do you think you're working? And that 143 00:07:13,240 --> 00:07:15,120 Speaker 1: you're going to open up a can of self worth 144 00:07:15,200 --> 00:07:18,400 Speaker 1: conversation and I am poorly prepared for this, so so 145 00:07:18,560 --> 00:07:19,800 Speaker 1: we're not going to go down there. But I just 146 00:07:19,880 --> 00:07:21,640 Speaker 1: had to say that because I do think that's true, 147 00:07:21,680 --> 00:07:23,840 Speaker 1: because I can remember my experience of getting my first 148 00:07:23,920 --> 00:07:26,640 Speaker 1: job and having like a panic attack when I was like, 149 00:07:26,800 --> 00:07:28,400 Speaker 1: I have to ask for more money and It's like 150 00:07:28,480 --> 00:07:30,040 Speaker 1: people would say, what's the worst are going to happen there? 151 00:07:30,040 --> 00:07:32,080 Speaker 1: I don't say, no, please don't know, but that would 152 00:07:32,080 --> 00:07:34,520 Speaker 1: be devastating, though it would be devasating, but it would 153 00:07:34,520 --> 00:07:37,000 Speaker 1: be devastating. But also I think the worst that could 154 00:07:37,000 --> 00:07:40,240 Speaker 1: be happened is somebody thinking that I shouldn't have asked that. 155 00:07:40,960 --> 00:07:43,120 Speaker 1: I think that for me is more of like why 156 00:07:43,160 --> 00:07:45,520 Speaker 1: would you ask that? Like you're dumb for asking that, 157 00:07:45,800 --> 00:07:48,679 Speaker 1: or there's a lot of things I think I'm getting 158 00:07:48,680 --> 00:07:51,800 Speaker 1: out of right. Well, but I make a good point. 159 00:07:51,880 --> 00:07:54,280 Speaker 1: I necessarily want to say that you're getting ahead of yourself, 160 00:07:54,400 --> 00:07:56,960 Speaker 1: but I'm curious to see where you're gonna end. Oh, 161 00:07:57,000 --> 00:07:59,960 Speaker 1: I don't know that. I could just go in circles 162 00:08:00,000 --> 00:08:02,120 Speaker 1: around that whole idea, but I just wanted to say 163 00:08:02,160 --> 00:08:05,000 Speaker 1: that because that is a repercussion of the idea that 164 00:08:05,080 --> 00:08:07,960 Speaker 1: we're not talking about it. Yeah, yeah, I think there's 165 00:08:08,000 --> 00:08:09,240 Speaker 1: a lot of truth to that, And I think when 166 00:08:09,280 --> 00:08:11,680 Speaker 1: it comes to money, you've got a number of different 167 00:08:11,720 --> 00:08:14,480 Speaker 1: ways that it plays out. You've got uh sort of 168 00:08:14,560 --> 00:08:18,880 Speaker 1: informal and social settings. You've got money in a professional setting, 169 00:08:19,040 --> 00:08:21,800 Speaker 1: You've got money in your own self worth, You've got 170 00:08:21,880 --> 00:08:24,800 Speaker 1: money internally in your own household, that is, you know 171 00:08:24,920 --> 00:08:27,560 Speaker 1: your own net worth. Uh. And I think that you 172 00:08:27,760 --> 00:08:30,720 Speaker 1: play the conversation out about money in those different settings 173 00:08:30,760 --> 00:08:35,480 Speaker 1: and you end up with different um psychosis. If you will, Well, 174 00:08:35,880 --> 00:08:38,280 Speaker 1: you're right, and so we're not going to pick one 175 00:08:38,360 --> 00:08:40,480 Speaker 1: of those. We're going to talk about it over arching. 176 00:08:40,880 --> 00:08:42,280 Speaker 1: But I do think you have a point of like 177 00:08:42,440 --> 00:08:44,920 Speaker 1: it feels different to talk about in different settings. But 178 00:08:45,120 --> 00:08:47,480 Speaker 1: my experience is like it's we don't talk about it 179 00:08:47,480 --> 00:08:52,240 Speaker 1: at all. I think that's very true all across the board. 180 00:08:52,559 --> 00:08:56,520 Speaker 1: And I think that there's a general sense of avoidance 181 00:08:56,880 --> 00:09:00,599 Speaker 1: to most things finances in in societ idea today, or 182 00:09:00,600 --> 00:09:04,400 Speaker 1: at least United States society today, and that plays itself 183 00:09:04,440 --> 00:09:06,559 Speaker 1: out in a lot of different ways. We can recognize 184 00:09:06,600 --> 00:09:09,520 Speaker 1: the symptoms of it socially, and we can recognize the 185 00:09:09,559 --> 00:09:12,800 Speaker 1: symptoms of it professionally. Uh. And we may say, Okay, 186 00:09:12,840 --> 00:09:15,400 Speaker 1: we need to focus on and address and fix the symptoms. 187 00:09:15,520 --> 00:09:18,200 Speaker 1: But listen, I'm gonna I'm gonna pose it that if 188 00:09:18,280 --> 00:09:21,839 Speaker 1: we can fix the more core issue, then all the 189 00:09:21,920 --> 00:09:24,520 Speaker 1: symptoms sort of resolve itself in the long term. Now, 190 00:09:24,600 --> 00:09:26,719 Speaker 1: that's not necessarily what we were to talk about in 191 00:09:26,840 --> 00:09:29,679 Speaker 1: my opinion, it's education. I mean I've complained to you 192 00:09:29,840 --> 00:09:33,600 Speaker 1: a couple of times that listen, high school students graduate 193 00:09:33,679 --> 00:09:38,000 Speaker 1: today knowing what a mitochondria does, but have no idea 194 00:09:38,480 --> 00:09:44,000 Speaker 1: what taxes are. And there's a huge gag, right, Like, yeah, 195 00:09:44,120 --> 00:09:46,280 Speaker 1: one of these is the powerhouse of the cell, and 196 00:09:46,360 --> 00:09:48,880 Speaker 1: the other of these is maybe the thing that you're 197 00:09:48,880 --> 00:09:51,319 Speaker 1: going to go to prison over. No, you're actually not. 198 00:09:52,600 --> 00:09:58,800 Speaker 1: I'm gonna get arrested one day. I don't do them wrong. 199 00:09:58,840 --> 00:10:01,760 Speaker 1: But it's just like a hu fear I have. It's irrational, 200 00:10:01,920 --> 00:10:03,959 Speaker 1: and I'm working through it. Yeah, I think that you're 201 00:10:04,040 --> 00:10:07,160 Speaker 1: right that I I agree because along with the idea 202 00:10:07,240 --> 00:10:10,880 Speaker 1: that like it's impolite, well it just isn't talked about. 203 00:10:10,960 --> 00:10:12,600 Speaker 1: I think that's the other thing I said. If it's 204 00:10:12,840 --> 00:10:15,840 Speaker 1: if it's something that's just not talked about, then there 205 00:10:15,960 --> 00:10:18,960 Speaker 1: this this like fear that kind of like builds up 206 00:10:19,000 --> 00:10:22,559 Speaker 1: around it. Yeah. It's also the concept of impolite is 207 00:10:22,600 --> 00:10:26,480 Speaker 1: interesting to me because I think socially it is implite 208 00:10:26,520 --> 00:10:28,280 Speaker 1: to talk about money, or at least it's perceived as 209 00:10:28,320 --> 00:10:32,480 Speaker 1: such and a lot of settings. And that's often because 210 00:10:33,120 --> 00:10:35,480 Speaker 1: when people start talking about money, there's a sense of 211 00:10:35,760 --> 00:10:40,160 Speaker 1: showmanship or posturing about it, like whether it's intended or 212 00:10:40,280 --> 00:10:43,880 Speaker 1: just perceived. If ever you talk about this bottle of 213 00:10:43,960 --> 00:10:46,520 Speaker 1: wine and it was this, or I bought this car 214 00:10:46,600 --> 00:10:48,679 Speaker 1: and it was that, or m I made this on 215 00:10:48,800 --> 00:10:51,719 Speaker 1: my paycheck, there's a sense of like, oh, look at me, 216 00:10:51,960 --> 00:10:55,280 Speaker 1: I'm I'm this big old person who is successful and accomplished, 217 00:10:55,320 --> 00:10:59,120 Speaker 1: where realistically that is just one very very very small 218 00:10:59,200 --> 00:11:04,160 Speaker 1: component of one actual financial wealth. However you wanted to 219 00:11:04,160 --> 00:11:06,719 Speaker 1: define it, but I just stop you. Okay, do you 220 00:11:06,760 --> 00:11:11,160 Speaker 1: want to know something interesting? Usually? Okay, right now? Do you? Yeah? Okay. 221 00:11:11,679 --> 00:11:14,360 Speaker 1: So it's funny that you say that because a couple 222 00:11:14,720 --> 00:11:17,280 Speaker 1: months ago, I did this episode on fear of failure, 223 00:11:17,800 --> 00:11:20,080 Speaker 1: which during that episode, I've found out that it's very 224 00:11:20,160 --> 00:11:22,439 Speaker 1: hard to say fear of failure, to say a lot 225 00:11:22,480 --> 00:11:24,679 Speaker 1: of fear of failure. Okay, you don't have trouble saying that. 226 00:11:24,800 --> 00:11:28,400 Speaker 1: I had some trouble anyway. In that conversation, I wanted 227 00:11:28,400 --> 00:11:30,920 Speaker 1: to figure out, Okay, if I'm afraid of failure, what 228 00:11:31,040 --> 00:11:32,760 Speaker 1: a success? So how do I know if I failed 229 00:11:32,800 --> 00:11:34,719 Speaker 1: or not? So I was doing some research and I 230 00:11:34,800 --> 00:11:39,240 Speaker 1: found this article, and I forget where this research came 231 00:11:39,280 --> 00:11:42,079 Speaker 1: from but it came from somewhere and not me. And 232 00:11:42,800 --> 00:11:47,200 Speaker 1: they did a survey and asked people what they thought 233 00:11:47,600 --> 00:11:52,280 Speaker 1: success was and what they thought other people think it is, 234 00:11:53,120 --> 00:11:58,480 Speaker 1: and of people said they think other people think success 235 00:11:58,559 --> 00:12:02,120 Speaker 1: is measured by finance, this like monetary that makes sense? 236 00:12:02,320 --> 00:12:04,880 Speaker 1: Jobs like that. I guess how many people actually, I'm 237 00:12:05,000 --> 00:12:10,280 Speaker 1: sure very few. So I just thought that was wild 238 00:12:11,000 --> 00:12:15,760 Speaker 1: because we're all out here doing this dance to prove 239 00:12:15,880 --> 00:12:22,760 Speaker 1: success in a form that nobody actually well they don't 240 00:12:22,800 --> 00:12:26,520 Speaker 1: count right now, nobody actually thinks that, and so then 241 00:12:26,559 --> 00:12:29,840 Speaker 1: we're all just manufacturing this like weird success. And if 242 00:12:29,880 --> 00:12:32,480 Speaker 1: we could strip that down, then I think we could 243 00:12:32,559 --> 00:12:34,880 Speaker 1: say like, oh, I got this bottle of wine. It 244 00:12:35,000 --> 00:12:39,520 Speaker 1: was a hundred dollars, and people wouldn't be like people. 245 00:12:39,559 --> 00:12:42,000 Speaker 1: People would just be like, oh, that's crazy, is it is? 246 00:12:42,080 --> 00:12:44,920 Speaker 1: It must be good, period, and it wouldn't be this 247 00:12:45,040 --> 00:12:46,920 Speaker 1: like oh they're trying to be blah blah blah. Or 248 00:12:46,960 --> 00:12:49,719 Speaker 1: I could say like, I, you know, stayed up a 249 00:12:49,800 --> 00:12:51,240 Speaker 1: bunch of money and I was able to buy this 250 00:12:51,360 --> 00:12:52,719 Speaker 1: like dream card. Do you want to come see it? 251 00:12:52,800 --> 00:12:55,400 Speaker 1: And it wouldn't be this like I'm trying to show 252 00:12:55,480 --> 00:12:57,439 Speaker 1: this off to you. It's like, I'm trying to share 253 00:12:57,520 --> 00:13:01,320 Speaker 1: with you something exciting. But because we think that people 254 00:13:01,360 --> 00:13:03,640 Speaker 1: think success is that way, then we use it as 255 00:13:03,679 --> 00:13:07,360 Speaker 1: a way sometimes to show our success. And I didn't 256 00:13:07,360 --> 00:13:08,959 Speaker 1: have to be that way. It certainly doesn't. And the 257 00:13:09,040 --> 00:13:11,920 Speaker 1: solution is to start just talking about money. I think 258 00:13:12,040 --> 00:13:14,880 Speaker 1: there's a lot of truth to that. Yeah, So I 259 00:13:15,000 --> 00:13:16,480 Speaker 1: cut you off, and I don't know where you were going. 260 00:13:16,600 --> 00:13:22,880 Speaker 1: I definitely don't either. You're not going to back, Okay. 261 00:13:23,120 --> 00:13:25,600 Speaker 1: So I think that just kind of as a whole 262 00:13:26,200 --> 00:13:29,240 Speaker 1: rounds out why. I think it's kind of hard because 263 00:13:29,280 --> 00:13:32,400 Speaker 1: there's no education, because it's impolite, and because we just 264 00:13:32,520 --> 00:13:35,240 Speaker 1: haven't done it. And if we don't do things, then 265 00:13:35,320 --> 00:13:38,640 Speaker 1: they become scary. Scary things are scary, and we don't 266 00:13:38,640 --> 00:13:40,840 Speaker 1: want to do them. Yeah, And I think that there's 267 00:13:40,840 --> 00:13:44,480 Speaker 1: another phenomena that I have a hard time capturing in words, 268 00:13:44,559 --> 00:13:47,160 Speaker 1: but I see evidence of it a lot. And this 269 00:13:47,320 --> 00:13:51,880 Speaker 1: is me speaking anecdotally, but there's this phenomena where the 270 00:13:51,960 --> 00:13:53,720 Speaker 1: best way I know how to translate, if you don't 271 00:13:53,880 --> 00:13:57,160 Speaker 1: know where you're going, you really struggle with where you 272 00:13:57,240 --> 00:14:00,720 Speaker 1: are and knowing whether you're in the right place. That's beautiful, 273 00:14:01,080 --> 00:14:05,000 Speaker 1: you can. I think that is true, yea. And when 274 00:14:05,080 --> 00:14:08,600 Speaker 1: that plays itself out in finances, when we don't think 275 00:14:08,720 --> 00:14:11,920 Speaker 1: about the way finances play out for ourselves, we don't 276 00:14:11,960 --> 00:14:13,680 Speaker 1: think about who we want to be when we grow up. 277 00:14:13,679 --> 00:14:16,240 Speaker 1: And that applies if you're twenty or if you're eighty. Um. 278 00:14:16,600 --> 00:14:18,719 Speaker 1: But if you don't really have a clear grasp of 279 00:14:18,840 --> 00:14:22,040 Speaker 1: that and you don't know how to directly translate that 280 00:14:22,160 --> 00:14:25,600 Speaker 1: into what that means for your money, then if you 281 00:14:25,680 --> 00:14:28,520 Speaker 1: think about where your money is today, then you just 282 00:14:28,640 --> 00:14:31,000 Speaker 1: struggle to grasp if it's in the right place, if 283 00:14:31,040 --> 00:14:33,120 Speaker 1: you're doing the right thing, because you don't have a 284 00:14:33,160 --> 00:14:34,760 Speaker 1: clear understanding of where it needs to be when you 285 00:14:34,800 --> 00:14:36,000 Speaker 1: grow up and what you need to be doing to 286 00:14:36,080 --> 00:14:39,360 Speaker 1: get you there that's right, and nobody's standing or rather, 287 00:14:39,480 --> 00:14:42,800 Speaker 1: without that clear vision of where you need to take 288 00:14:42,840 --> 00:14:45,080 Speaker 1: yourself and how your money is going to get you there, 289 00:14:45,600 --> 00:14:48,440 Speaker 1: you have no confidence on the ground that you're standing 290 00:14:48,480 --> 00:14:51,720 Speaker 1: on now financially. And so whenever you think about finances, 291 00:14:51,760 --> 00:14:55,920 Speaker 1: there's a degree of high degree of lack of confidence 292 00:14:56,240 --> 00:14:58,840 Speaker 1: that comes from them. Well, that's sure, I would say, 293 00:14:58,880 --> 00:15:01,040 Speaker 1: there's shame. And before we get into some of the 294 00:15:01,160 --> 00:15:04,120 Speaker 1: questions that I'm going to ask. I would like to 295 00:15:04,560 --> 00:15:08,760 Speaker 1: talk about that because I do and have felt personally, 296 00:15:09,000 --> 00:15:10,880 Speaker 1: and I did not think I'm alone in this a 297 00:15:11,040 --> 00:15:14,760 Speaker 1: lot of shame for not knowing some of the stuff 298 00:15:14,840 --> 00:15:17,120 Speaker 1: and not knowing what to do. And so when I 299 00:15:17,320 --> 00:15:20,000 Speaker 1: feel shame, and when a lot of us feel shame, 300 00:15:20,440 --> 00:15:23,040 Speaker 1: one thing we do is we try to avoid it 301 00:15:23,320 --> 00:15:26,200 Speaker 1: by avoiding it, which doesn't help because then it is 302 00:15:26,280 --> 00:15:29,360 Speaker 1: just there and then it causes bigger issues. And there's 303 00:15:29,440 --> 00:15:34,960 Speaker 1: nothing shameful about not knowing about something that nobody taught you, 304 00:15:35,360 --> 00:15:37,960 Speaker 1: and there's nothing shameful about not knowing about something that 305 00:15:38,000 --> 00:15:40,280 Speaker 1: people told you not to talk about. But we care 306 00:15:40,360 --> 00:15:42,000 Speaker 1: that and that I think is one of the reasons 307 00:15:42,080 --> 00:15:45,400 Speaker 1: that I have recently asked my dad for the name 308 00:15:45,640 --> 00:15:50,120 Speaker 1: of one of his financial advisor people, like four or 309 00:15:50,160 --> 00:15:51,920 Speaker 1: five times, and he's getting it to me, and I've 310 00:15:52,040 --> 00:15:56,000 Speaker 1: never reached out to him because I feel there's a 311 00:15:56,080 --> 00:15:58,720 Speaker 1: sense of like, it's too late for me. I should 312 00:15:58,760 --> 00:16:01,080 Speaker 1: have done this when I was twenty two. I tried 313 00:16:01,120 --> 00:16:03,640 Speaker 1: to do it two that's a story for a different podcast, 314 00:16:04,400 --> 00:16:06,360 Speaker 1: and and that story ended in shame, and so I 315 00:16:06,440 --> 00:16:09,120 Speaker 1: avoided it, and so then I get into my thirties 316 00:16:09,200 --> 00:16:11,680 Speaker 1: and I'm like, oh, ship, one day I'm going to 317 00:16:11,760 --> 00:16:14,400 Speaker 1: retire and I work for myself, what do I just 318 00:16:14,520 --> 00:16:16,920 Speaker 1: keep a bunch of money in a bank account that no, 319 00:16:17,000 --> 00:16:20,600 Speaker 1: I'm sorry, I cannot. I'm sorry, I cannot give advice 320 00:16:22,680 --> 00:16:25,760 Speaker 1: that just came out because but like, yeah, and it's 321 00:16:25,800 --> 00:16:28,560 Speaker 1: all because there's a sense of like I'm dumb, and 322 00:16:28,560 --> 00:16:30,400 Speaker 1: I'm gonna go to this person's office and they're gonna 323 00:16:30,400 --> 00:16:32,000 Speaker 1: be like, why are you just now getting here? Or 324 00:16:32,240 --> 00:16:34,520 Speaker 1: you're too far gone, or they're gonna say something like 325 00:16:34,600 --> 00:16:36,720 Speaker 1: I can't believe you did this, or they're going to 326 00:16:36,760 --> 00:16:38,360 Speaker 1: say we're in trouble, like we have a lot of 327 00:16:38,400 --> 00:16:40,240 Speaker 1: work to do, and like I don't want to be 328 00:16:40,280 --> 00:16:42,800 Speaker 1: in trouble, and I also have this irrational fear of 329 00:16:42,840 --> 00:16:47,360 Speaker 1: going to jailing that I probably didn't do. Um. So 330 00:16:47,960 --> 00:16:50,560 Speaker 1: all that to say, I want to invite anybody who's 331 00:16:50,600 --> 00:16:52,920 Speaker 1: listening to this into the idea that like, shame does 332 00:16:52,960 --> 00:16:57,040 Speaker 1: not belong in a place where this topic is living 333 00:16:57,360 --> 00:17:00,400 Speaker 1: because you didn't do anything to not know this stuff 334 00:17:00,560 --> 00:17:04,640 Speaker 1: that wasn't essentially like pushed upon you. That's very real, 335 00:17:04,960 --> 00:17:10,000 Speaker 1: and I think you've unfortunately not had a incredibly unique 336 00:17:10,040 --> 00:17:14,119 Speaker 1: experience with financial planners in that I mean, I hear 337 00:17:14,160 --> 00:17:16,600 Speaker 1: you talk about therapists this way, and that financial planners 338 00:17:16,640 --> 00:17:19,800 Speaker 1: are humans too, and some of them are more empathetic 339 00:17:19,840 --> 00:17:22,440 Speaker 1: than others, and some of them are trained a little 340 00:17:22,440 --> 00:17:26,080 Speaker 1: bit differently. I mean, interestingly, financial planners don't have the 341 00:17:26,680 --> 00:17:30,080 Speaker 1: degree of uniform training that even you, as a therapist would, 342 00:17:30,400 --> 00:17:33,119 Speaker 1: And so if I'm sitting across the table from a 343 00:17:33,200 --> 00:17:35,680 Speaker 1: therapist and more or less know the training you've been through, 344 00:17:35,720 --> 00:17:37,680 Speaker 1: I know more or less know the education you've been through, 345 00:17:37,760 --> 00:17:40,080 Speaker 1: the licensing that you've been through. That's not the case 346 00:17:40,160 --> 00:17:42,560 Speaker 1: for financial advisors. You don't have like a licensing board. 347 00:17:42,600 --> 00:17:46,680 Speaker 1: And we have many licenses that allow us to do 348 00:17:46,880 --> 00:17:50,399 Speaker 1: numerous different things, and not everybody has the same licenses, 349 00:17:51,080 --> 00:17:53,920 Speaker 1: nor is there one uniform way to get any of 350 00:17:54,000 --> 00:17:59,400 Speaker 1: those licenses. So I have the CFP designation that stands 351 00:17:59,440 --> 00:18:03,119 Speaker 1: for Certified Financial Planner. That's colloquially held as sort of 352 00:18:03,160 --> 00:18:07,600 Speaker 1: the chief diagnostic certification in the finance industry. It's sort 353 00:18:07,640 --> 00:18:10,960 Speaker 1: of the highest in one realm of the financial planning world. 354 00:18:11,400 --> 00:18:14,639 Speaker 1: There are other licenses. I actually have other licenses, a 355 00:18:14,760 --> 00:18:18,480 Speaker 1: series seven, A Series sixties six. All these things that 356 00:18:18,920 --> 00:18:22,880 Speaker 1: in previous careers actually allowed me to do certain things. Frankly, 357 00:18:22,960 --> 00:18:27,120 Speaker 1: they actually allowed me to sell and broker different investments 358 00:18:27,200 --> 00:18:29,639 Speaker 1: to you, But in and of themselves, that doesn't inherently 359 00:18:30,080 --> 00:18:33,879 Speaker 1: train me to be empathetic and train me to understand 360 00:18:33,960 --> 00:18:37,080 Speaker 1: the challenges that you're going through. And so, like I say, 361 00:18:37,640 --> 00:18:40,360 Speaker 1: somebody who is a financial planner is not the same 362 00:18:40,400 --> 00:18:42,760 Speaker 1: as another person who is a financial planner. Is that 363 00:18:42,800 --> 00:18:45,439 Speaker 1: frustrating for you? It's very frustrating for me. It's very, very, 364 00:18:45,560 --> 00:18:48,240 Speaker 1: very frustrating for me. And I hate to say this 365 00:18:48,880 --> 00:18:52,120 Speaker 1: on recording, but I think that the industry broadly has 366 00:18:52,280 --> 00:18:54,520 Speaker 1: has done a pretty bad job of that in reference 367 00:18:54,560 --> 00:18:57,280 Speaker 1: to the consumers, and that they've put a lot of 368 00:18:57,400 --> 00:19:01,919 Speaker 1: burden on the consumer to figured out yourself. And oh, 369 00:19:02,160 --> 00:19:04,600 Speaker 1: in the process while you're figuring it out yourself, like 370 00:19:05,160 --> 00:19:07,160 Speaker 1: be aware that you might mess it up because somebody 371 00:19:07,200 --> 00:19:10,240 Speaker 1: gives you bad advice, or because somebody's not empathetic and 372 00:19:10,280 --> 00:19:12,640 Speaker 1: doesn't really understand where you are, what you're going through, 373 00:19:12,960 --> 00:19:15,480 Speaker 1: or doesn't really understand who you want to be when 374 00:19:15,520 --> 00:19:16,840 Speaker 1: you grow up and says you need to go a 375 00:19:16,880 --> 00:19:19,879 Speaker 1: different direction. And it could be because of malice. I 376 00:19:19,960 --> 00:19:21,960 Speaker 1: don't think there's that many bad actors, but I do 377 00:19:22,160 --> 00:19:25,640 Speaker 1: think that there's a lot of opportunity for just misunderstanding, 378 00:19:26,040 --> 00:19:29,840 Speaker 1: and those misunderstandings to translate into advice that you then 379 00:19:29,920 --> 00:19:32,639 Speaker 1: act on that wasn't actually in line with what you 380 00:19:32,680 --> 00:19:35,639 Speaker 1: wanted to get out of your finances. That are you 381 00:19:35,760 --> 00:19:39,040 Speaker 1: saying to I think I'm sorry, I'm pointing at him. 382 00:19:39,720 --> 00:19:41,760 Speaker 1: I think that is a good point. I think you 383 00:19:41,840 --> 00:19:44,119 Speaker 1: said this the other day when we were talking, because 384 00:19:44,240 --> 00:19:45,680 Speaker 1: as you were saying that, I was like, Oh, there's 385 00:19:45,680 --> 00:19:48,159 Speaker 1: a good amount of not great therapist too. And I 386 00:19:48,280 --> 00:19:51,320 Speaker 1: even got an email today from somebody who shared an 387 00:19:51,359 --> 00:19:54,040 Speaker 1: experience of something that therapist said to them, And in 388 00:19:54,119 --> 00:19:56,760 Speaker 1: my head, I was like, how in the hell would 389 00:19:56,960 --> 00:20:00,800 Speaker 1: anybody ever think that that's a good idea to say. 390 00:20:01,720 --> 00:20:05,639 Speaker 1: I was just like, what I say that because we 391 00:20:05,720 --> 00:20:08,080 Speaker 1: can get very discouraged and people go to therapy and 392 00:20:08,119 --> 00:20:09,359 Speaker 1: they hear something like that and they're like, I'm not 393 00:20:09,440 --> 00:20:12,159 Speaker 1: going back to therapy. Those people are mean, they're judgmental 394 00:20:12,280 --> 00:20:14,520 Speaker 1: to this, they're that, And I think that's it can 395 00:20:14,560 --> 00:20:17,280 Speaker 1: be an any any industry that we can't judge one person. 396 00:20:17,400 --> 00:20:20,639 Speaker 1: We can't just the whole thing on one person. But 397 00:20:20,760 --> 00:20:22,760 Speaker 1: I think what you just said about like that might 398 00:20:22,840 --> 00:20:25,600 Speaker 1: not be that person's goal. And as a therapist, I 399 00:20:25,720 --> 00:20:28,800 Speaker 1: have to check myself all of the time because I'm 400 00:20:28,880 --> 00:20:32,520 Speaker 1: a human who thinks certain things about what is right 401 00:20:33,200 --> 00:20:36,359 Speaker 1: for my life, and I think, apparently what's right for 402 00:20:37,560 --> 00:20:38,639 Speaker 1: I don't even know how to say this, but I 403 00:20:38,680 --> 00:20:42,760 Speaker 1: don't think that the vast majority of people sit in 404 00:20:42,880 --> 00:20:46,320 Speaker 1: the seat of what's right for me is not right 405 00:20:46,400 --> 00:20:48,639 Speaker 1: for everybody. They sit in the seat of what's right 406 00:20:48,720 --> 00:20:50,960 Speaker 1: for me is the best, and everybody should want the best, 407 00:20:51,080 --> 00:20:53,040 Speaker 1: and so everybody should want what I want. And I've 408 00:20:53,200 --> 00:20:57,639 Speaker 1: I've only learned how to take on this idea through experiencing, like, 409 00:20:57,840 --> 00:21:01,240 Speaker 1: oh my gosh, there's so many different lines of humans 410 00:21:01,520 --> 00:21:04,640 Speaker 1: who have different goals and different beliefs work for them, 411 00:21:04,760 --> 00:21:07,040 Speaker 1: and so I have to be very aware of that 412 00:21:07,240 --> 00:21:10,440 Speaker 1: because if somebody comes in here and I'm like trying 413 00:21:10,520 --> 00:21:13,159 Speaker 1: to help them, but I'm help trying to help them 414 00:21:13,320 --> 00:21:15,880 Speaker 1: believe what I believe and get what I want out 415 00:21:15,920 --> 00:21:18,280 Speaker 1: of life, they might not want that, and then they're 416 00:21:18,280 --> 00:21:20,800 Speaker 1: going to be either lost or piste off or hurt 417 00:21:21,440 --> 00:21:25,399 Speaker 1: or confused or whatever, and I think that can be 418 00:21:25,480 --> 00:21:28,240 Speaker 1: the same with money, is not everybody has to have 419 00:21:28,359 --> 00:21:36,560 Speaker 1: the same goals with their money. So when we were 420 00:21:36,560 --> 00:21:39,520 Speaker 1: talking abother night, I asked a question about like paying 421 00:21:39,560 --> 00:21:41,000 Speaker 1: off loans, and I was like, I just want to 422 00:21:41,000 --> 00:21:42,800 Speaker 1: pay my loans off. And you were like, why what 423 00:21:42,960 --> 00:21:45,200 Speaker 1: loans are we talking about and why and I was like, well, 424 00:21:45,280 --> 00:21:48,000 Speaker 1: because I need to be debt free. Of course, that's 425 00:21:48,000 --> 00:21:50,959 Speaker 1: what everybody. Everybody should be debt free. That's what like, right, 426 00:21:51,640 --> 00:21:55,800 Speaker 1: But we kept talking and you ask me some follow 427 00:21:55,880 --> 00:21:58,159 Speaker 1: up questions. I'm not going to share the details of it, 428 00:21:58,280 --> 00:22:01,080 Speaker 1: but the point I'm trying to make is it might 429 00:22:01,119 --> 00:22:04,040 Speaker 1: not lead me to my goals to try to be 430 00:22:04,119 --> 00:22:07,160 Speaker 1: debt free first, and I think that that is even something. 431 00:22:07,240 --> 00:22:09,200 Speaker 1: It's like, debt is bad and you shouldn't have it 432 00:22:09,240 --> 00:22:10,480 Speaker 1: and get rid of it as soon as you can 433 00:22:10,560 --> 00:22:12,560 Speaker 1: and spend all your money to not have it. But 434 00:22:12,680 --> 00:22:14,800 Speaker 1: like that might not align with what I wanted of life, 435 00:22:14,840 --> 00:22:18,240 Speaker 1: and that's okay, that's that's that is okay. And I'm 436 00:22:18,240 --> 00:22:20,040 Speaker 1: not saying like, go like get a bunch of credit 437 00:22:20,040 --> 00:22:22,160 Speaker 1: card debt, but like you gotta you gotta think about 438 00:22:22,200 --> 00:22:26,719 Speaker 1: the voices that are preaching that message the loudest are 439 00:22:26,760 --> 00:22:30,159 Speaker 1: the ones that are preaching to the broadest portion of 440 00:22:30,200 --> 00:22:32,960 Speaker 1: the population. We're talking millions of people at a time, 441 00:22:33,640 --> 00:22:36,280 Speaker 1: and when you're talking to millions of people at a time, 442 00:22:36,280 --> 00:22:38,680 Speaker 1: you've got to think about, how can I give advice 443 00:22:38,920 --> 00:22:43,400 Speaker 1: that is going to be messed up less frequently than 444 00:22:43,480 --> 00:22:47,760 Speaker 1: any other advice. And if I tell people don't pay 445 00:22:47,760 --> 00:22:49,480 Speaker 1: off your debt, go make the life that you want, 446 00:22:50,119 --> 00:22:52,679 Speaker 1: people mess that up and people end up in too 447 00:22:52,800 --> 00:22:56,480 Speaker 1: much debt and don't ever get there, that's right, absolutely. 448 00:22:56,600 --> 00:22:59,560 Speaker 1: But if you say the opposite, pay off your debt, 449 00:23:00,240 --> 00:23:02,960 Speaker 1: worry about getting your balance sheet clean and free and 450 00:23:03,040 --> 00:23:05,479 Speaker 1: clear of all that debt, then you know, what are 451 00:23:05,480 --> 00:23:07,560 Speaker 1: we talking about messing up here? Really, what we're talking 452 00:23:07,600 --> 00:23:10,760 Speaker 1: about here is asterisk. We're talking about a economics term here, 453 00:23:10,800 --> 00:23:14,520 Speaker 1: but opportunity cost It's okay, Was that the best place 454 00:23:14,600 --> 00:23:17,600 Speaker 1: for your dollar? Maybe? Maybe not, But that's not a 455 00:23:17,680 --> 00:23:19,639 Speaker 1: big mistake. If you do go and pay off all 456 00:23:19,680 --> 00:23:22,120 Speaker 1: your debt, and if you are that group of people 457 00:23:22,200 --> 00:23:23,920 Speaker 1: who are talking to millions of people at a time 458 00:23:23,960 --> 00:23:26,680 Speaker 1: behind the microphone or writing books or whatever, then that's 459 00:23:26,680 --> 00:23:29,359 Speaker 1: a that's a pretty safe way to give black and 460 00:23:29,400 --> 00:23:32,040 Speaker 1: white advice. Yeah, And if I'm afraid to talk about money, 461 00:23:32,240 --> 00:23:35,119 Speaker 1: I'm going to read a book or listen to a 462 00:23:35,240 --> 00:23:40,720 Speaker 1: podcast or or follow something big like that, so I 463 00:23:40,760 --> 00:23:42,840 Speaker 1: don't have to have that personal experience. The same thing 464 00:23:43,200 --> 00:23:46,560 Speaker 1: with therapy. Wow, this is a very mental health focused 465 00:23:47,760 --> 00:23:50,760 Speaker 1: because I think that's why I get so and a 466 00:23:50,840 --> 00:23:52,760 Speaker 1: lot of the listeners are probably okay, can't we get it? 467 00:23:53,000 --> 00:23:54,880 Speaker 1: It annoys you because I talk about all the time, 468 00:23:55,240 --> 00:23:59,919 Speaker 1: but I get so frustrated with like TikTok and instagram 469 00:24:00,240 --> 00:24:05,040 Speaker 1: mental health coaches therapists people on there because they're generalizing 470 00:24:05,080 --> 00:24:07,240 Speaker 1: a lot of things and then people are grabbing onto 471 00:24:07,280 --> 00:24:08,920 Speaker 1: it and I'm like, but that doesn't have to apply 472 00:24:09,000 --> 00:24:12,520 Speaker 1: to you that way, and so it's dangerous. Could be right, 473 00:24:12,600 --> 00:24:17,359 Speaker 1: and there oftentimes a lot of truth in what's being said, 474 00:24:17,920 --> 00:24:21,520 Speaker 1: but is it the best for you? So what I 475 00:24:21,520 --> 00:24:24,399 Speaker 1: would like to do, since I have you here, is 476 00:24:24,480 --> 00:24:27,800 Speaker 1: just ask you some questions and give us as much 477 00:24:27,840 --> 00:24:29,880 Speaker 1: of an answer that you can. And sometimes the answer 478 00:24:30,040 --> 00:24:32,040 Speaker 1: might be I don't know, it sounds like you might 479 00:24:32,119 --> 00:24:35,800 Speaker 1: need a more tailored answer to you. But I joked 480 00:24:35,800 --> 00:24:39,120 Speaker 1: about this when I put a question box on Instagram 481 00:24:39,160 --> 00:24:41,200 Speaker 1: and said, like, what are some questions that you're afraid 482 00:24:41,200 --> 00:24:43,560 Speaker 1: to ask about money? And the most common one was 483 00:24:44,320 --> 00:24:46,000 Speaker 1: it just makes me laugh because it's the one that 484 00:24:46,359 --> 00:24:48,600 Speaker 1: I think I asked you first. Now, I was like, 485 00:24:49,040 --> 00:24:51,320 Speaker 1: what is a four oh one K? Why don't I 486 00:24:51,400 --> 00:24:53,240 Speaker 1: know what it is? Should I know what it is? 487 00:24:53,720 --> 00:24:55,280 Speaker 1: Should I have one? And where do I get one? 488 00:24:56,000 --> 00:24:57,760 Speaker 1: So can we start with that? I think that's a 489 00:24:57,800 --> 00:25:01,280 Speaker 1: perfectly fine place to start. A four win K is 490 00:25:01,520 --> 00:25:06,320 Speaker 1: what will refer to as an employer sponsored retirement savings plan. 491 00:25:06,480 --> 00:25:08,040 Speaker 1: Those are all words, and you know what each of 492 00:25:08,080 --> 00:25:10,120 Speaker 1: those words mean, but when you actually play it out 493 00:25:10,160 --> 00:25:13,080 Speaker 1: into an investment account, you think, what in the world 494 00:25:13,280 --> 00:25:16,320 Speaker 1: does all those words mean. Um, we'll break it down. 495 00:25:16,400 --> 00:25:19,480 Speaker 1: Employer sponsored means that it can only be offered by 496 00:25:19,640 --> 00:25:22,439 Speaker 1: your employer. So you can't go to your bank and say, Hi, 497 00:25:22,520 --> 00:25:24,360 Speaker 1: can I get a four one K today? Please open 498 00:25:24,400 --> 00:25:26,240 Speaker 1: one up at the bank. You can't unless you have 499 00:25:26,359 --> 00:25:29,000 Speaker 1: your own job. So I can rather not your own job, 500 00:25:29,040 --> 00:25:30,960 Speaker 1: but your own company. Right, you can open up in 501 00:25:31,040 --> 00:25:33,240 Speaker 1: the name of the company, and the company opens one 502 00:25:33,320 --> 00:25:36,520 Speaker 1: up and then allows different participants within the plan, and 503 00:25:36,640 --> 00:25:39,479 Speaker 1: I can participate in the plan. That's right. Okay, that's right. 504 00:25:40,160 --> 00:25:43,520 Speaker 1: Or if you are employed by h c A, a 505 00:25:43,640 --> 00:25:46,439 Speaker 1: large hospital in Nashville, then well, I guess all across 506 00:25:46,440 --> 00:25:48,920 Speaker 1: the country. Then h c A has a four win 507 00:25:49,040 --> 00:25:51,960 Speaker 1: K and allows any and all of their full time 508 00:25:52,000 --> 00:25:56,160 Speaker 1: employees to participate in differ part of their salary into 509 00:25:56,240 --> 00:25:59,119 Speaker 1: that four win K plan. So again, that's the employer 510 00:25:59,280 --> 00:26:02,400 Speaker 1: sponsored So why would I want to defer my money 511 00:26:02,480 --> 00:26:07,800 Speaker 1: into that? So that brings us to the retirement savings vehicle. Well, 512 00:26:07,800 --> 00:26:11,080 Speaker 1: actually I should give another asterisks. It's an employer sponsored 513 00:26:11,520 --> 00:26:15,240 Speaker 1: tax deferred retirement savings vehicle. Let me come back to 514 00:26:15,280 --> 00:26:17,520 Speaker 1: the tax deferred part for a second and talk about 515 00:26:17,560 --> 00:26:22,680 Speaker 1: the retirement savings. Retirement savings means that once you put 516 00:26:22,720 --> 00:26:25,440 Speaker 1: the dollar into the account, it is not meant to 517 00:26:25,480 --> 00:26:29,800 Speaker 1: be spent until you are retired as defined by an 518 00:26:29,880 --> 00:26:32,920 Speaker 1: age meaning fifty nine and a half. So put it 519 00:26:33,000 --> 00:26:35,320 Speaker 1: all are into your four wind came I. R S 520 00:26:35,400 --> 00:26:37,320 Speaker 1: is saying, please don't touch this until you're fifty nine 521 00:26:37,359 --> 00:26:39,159 Speaker 1: and a half, or if you do, we're going to 522 00:26:39,320 --> 00:26:41,200 Speaker 1: tax you and we're gonna penalize you. Now, it's not 523 00:26:41,240 --> 00:26:42,879 Speaker 1: the end of the world to be taxed nobody ever 524 00:26:42,920 --> 00:26:45,680 Speaker 1: went broke paying taxes. I should check with my compliance 525 00:26:45,720 --> 00:26:47,800 Speaker 1: officer or whether I can say that. So Jason, good 526 00:26:47,840 --> 00:26:49,960 Speaker 1: on to me if I if I can't actually say that. 527 00:26:50,160 --> 00:26:53,879 Speaker 1: But and the penalty is ten percent. So again this 528 00:26:54,119 --> 00:26:57,120 Speaker 1: is not, you know, a prisonable offense if you mess 529 00:26:57,200 --> 00:26:59,560 Speaker 1: that up. However, the whole point of the four win 530 00:26:59,640 --> 00:27:03,680 Speaker 1: K is set it aside for retirement and because that's 531 00:27:03,680 --> 00:27:05,920 Speaker 1: a good idea, or at least the I R S 532 00:27:06,000 --> 00:27:08,199 Speaker 1: thinks it's a good idea because that helps them. By 533 00:27:08,200 --> 00:27:10,440 Speaker 1: the way, if you say for your own retirement, that 534 00:27:10,640 --> 00:27:13,600 Speaker 1: means that you are less of a burden on the state. 535 00:27:13,680 --> 00:27:16,920 Speaker 1: When you're later in age, you're putting less burden on 536 00:27:17,119 --> 00:27:21,639 Speaker 1: the social security administration system. And as you're self ensuring 537 00:27:21,680 --> 00:27:24,480 Speaker 1: your own retirement, then they have to rely less on 538 00:27:24,640 --> 00:27:27,920 Speaker 1: taxes and social infrastructure to actually support you in retirement. 539 00:27:27,960 --> 00:27:29,960 Speaker 1: So they think, oh, please and thank you. Will you 540 00:27:30,119 --> 00:27:34,240 Speaker 1: please say for your own that's right, and in exchange 541 00:27:34,240 --> 00:27:36,399 Speaker 1: for that to kind of back their word up, that 542 00:27:36,800 --> 00:27:39,560 Speaker 1: allow us some tax breaks on that. So that brings 543 00:27:39,600 --> 00:27:41,280 Speaker 1: me to the last comment being that it is a 544 00:27:41,640 --> 00:27:45,959 Speaker 1: tax deferred account. Now, technically the four win K can 545 00:27:46,000 --> 00:27:48,080 Speaker 1: be set up as one of two different types of 546 00:27:48,160 --> 00:27:50,120 Speaker 1: four win ks. It can either be a traditional four 547 00:27:50,240 --> 00:27:53,119 Speaker 1: win K or it can be a WROTH for win K. 548 00:27:53,359 --> 00:27:54,879 Speaker 1: We'll get back to the ROTH in a second, but 549 00:27:55,000 --> 00:27:56,639 Speaker 1: roth is just we just need to treat that as 550 00:27:56,640 --> 00:27:59,760 Speaker 1: an adjective to describe the type of four one K 551 00:28:00,320 --> 00:28:04,199 Speaker 1: and it changes. The term roth means that the taxation 552 00:28:04,359 --> 00:28:07,120 Speaker 1: changes flip flops where the taxes are going to be paid. 553 00:28:07,400 --> 00:28:11,480 Speaker 1: So the tax deferred account means that when you put 554 00:28:11,520 --> 00:28:13,920 Speaker 1: the dollar into the four wind K, you don't have 555 00:28:14,080 --> 00:28:16,800 Speaker 1: to pay taxes on that dollar. But when you set 556 00:28:16,840 --> 00:28:19,280 Speaker 1: the money in the account and it grows, it still 557 00:28:19,400 --> 00:28:23,040 Speaker 1: grows with no tax burden until you get to retirement 558 00:28:23,119 --> 00:28:26,159 Speaker 1: and you remove dollars from the account. Then when you 559 00:28:26,320 --> 00:28:28,720 Speaker 1: remove the dollars, all those dollars would be taxable to 560 00:28:28,800 --> 00:28:31,920 Speaker 1: you as income whenever you do remove them. You're looking 561 00:28:31,920 --> 00:28:33,560 Speaker 1: at me confused. Let me give you a very simple 562 00:28:33,640 --> 00:28:35,879 Speaker 1: case study. If I've got a hundred bucks in a 563 00:28:35,920 --> 00:28:38,920 Speaker 1: week and I decided to defer ten of those dollars 564 00:28:39,000 --> 00:28:41,000 Speaker 1: to my four wind K, that means I get to 565 00:28:41,040 --> 00:28:42,840 Speaker 1: turn to the I R S and say, hey, guys, 566 00:28:43,080 --> 00:28:47,400 Speaker 1: I only made ninety dollars this week. That's good because taxes, 567 00:28:47,640 --> 00:28:50,440 Speaker 1: this is very simple but powerful. Taxes zode on ninety 568 00:28:50,520 --> 00:28:54,280 Speaker 1: dollars is less than taxes zode on a hundred dollars. Okay, 569 00:28:54,520 --> 00:28:57,840 Speaker 1: that's good because all of a sudden, you're cash flow 570 00:28:58,040 --> 00:29:00,960 Speaker 1: was much less burdened by put those ten dollars into 571 00:29:01,000 --> 00:29:03,440 Speaker 1: the four wind K because you got that tax deduction 572 00:29:03,520 --> 00:29:06,000 Speaker 1: for it. So that extra cash flow that you get 573 00:29:06,080 --> 00:29:08,600 Speaker 1: from the tax deduction you could use to you know, 574 00:29:08,720 --> 00:29:11,440 Speaker 1: pay your student loans off, or put in more money 575 00:29:11,480 --> 00:29:13,320 Speaker 1: into your four wind K or whatever you needed to do. 576 00:29:13,800 --> 00:29:16,000 Speaker 1: But up front, you get a little bonus from that 577 00:29:16,120 --> 00:29:19,120 Speaker 1: tax deduction, and that shows itself in the form of 578 00:29:19,960 --> 00:29:22,960 Speaker 1: your tax with holdings. If you look at your paycheck, 579 00:29:23,320 --> 00:29:25,800 Speaker 1: you see taxes being withheld from your paycheck, it will 580 00:29:25,840 --> 00:29:28,080 Speaker 1: be less. It will be less. So you may put 581 00:29:28,120 --> 00:29:31,520 Speaker 1: a dollar into your four wind K and your tax 582 00:29:31,560 --> 00:29:34,280 Speaker 1: withholdings might go down by twenty cents. I might be 583 00:29:34,320 --> 00:29:38,120 Speaker 1: getting ahead of myself. I'm pretty sure you can invest 584 00:29:38,560 --> 00:29:41,280 Speaker 1: money that's in your four oh one K. You can, 585 00:29:41,520 --> 00:29:45,360 Speaker 1: absolutely So if you make money inside the four oh 586 00:29:45,440 --> 00:29:49,120 Speaker 1: one K, do you have to pay taxes on the 587 00:29:49,240 --> 00:29:51,800 Speaker 1: money that is made inside of it. It was a 588 00:29:52,040 --> 00:29:55,360 Speaker 1: perfect transition into the next phase of my case study. 589 00:29:55,960 --> 00:29:58,440 Speaker 1: So day one, you make a hundred bucks, you put 590 00:29:58,480 --> 00:30:00,760 Speaker 1: ten into the four wind K. Don't pay taxes on 591 00:30:00,800 --> 00:30:03,720 Speaker 1: those tin you pay taxes on the remaining ninety, so 592 00:30:03,840 --> 00:30:06,320 Speaker 1: we save some money. That's great. Meanwhile, the ten dollar 593 00:30:06,400 --> 00:30:09,480 Speaker 1: sits in your four win K, and all four wind 594 00:30:09,560 --> 00:30:13,000 Speaker 1: k's are given a list of mutual funds that they 595 00:30:13,040 --> 00:30:16,040 Speaker 1: can invest in. There's usually a pretty broad range of them, 596 00:30:16,280 --> 00:30:21,640 Speaker 1: but they're fairly systematized. There's there's fairly repeatable and predictable 597 00:30:22,400 --> 00:30:24,920 Speaker 1: what kind of funds would be in there most of 598 00:30:25,000 --> 00:30:27,120 Speaker 1: the time. These days, there's even such thing as what 599 00:30:27,200 --> 00:30:29,960 Speaker 1: they call a target retirement date fund. That's kind of 600 00:30:30,200 --> 00:30:32,480 Speaker 1: put the money in there and it does it for you, 601 00:30:32,920 --> 00:30:36,000 Speaker 1: assuming that you're going to retire by whatever date. We 602 00:30:36,080 --> 00:30:38,200 Speaker 1: don't have to get too complicated about that. What is 603 00:30:38,240 --> 00:30:43,200 Speaker 1: a mutual fund? No, it's not at all. I think investing. 604 00:30:43,320 --> 00:30:46,640 Speaker 1: I think I'm going to buy stock and target or something. Yeah, 605 00:30:46,800 --> 00:30:49,640 Speaker 1: certainly that's a mutual fund. Okay, let's bookmark where we 606 00:30:49,760 --> 00:30:52,440 Speaker 1: just left with our money in the case study, where 607 00:30:52,440 --> 00:30:54,840 Speaker 1: the money is in the four wind K and it's growing, 608 00:30:55,320 --> 00:30:59,040 Speaker 1: and as it grows, it grows totally tax free. Um 609 00:30:59,160 --> 00:31:02,320 Speaker 1: let's bookmark this point and talk about the mutual funds 610 00:31:02,400 --> 00:31:04,160 Speaker 1: and the stocks and the bonds. Will come right back 611 00:31:04,200 --> 00:31:06,560 Speaker 1: to it. But I want to finish my point about 612 00:31:06,600 --> 00:31:08,840 Speaker 1: the case study that as the ten dollars is in 613 00:31:08,920 --> 00:31:11,840 Speaker 1: the four one k growing, you pay no taxes on 614 00:31:11,880 --> 00:31:14,800 Speaker 1: its growth. But then when you get to retirement, if 615 00:31:14,880 --> 00:31:17,880 Speaker 1: you remove a hundred dollars in a week from that account, 616 00:31:18,360 --> 00:31:19,720 Speaker 1: you have to turn to the I R S and 617 00:31:19,800 --> 00:31:25,640 Speaker 1: say I made So however much you withdrawal is going 618 00:31:25,720 --> 00:31:28,000 Speaker 1: to define whatever your tax bill is going to be 619 00:31:28,880 --> 00:31:32,400 Speaker 1: to conceptually make some sense. Okay, so it is a 620 00:31:32,600 --> 00:31:36,240 Speaker 1: tax deferred retirement savings vehicle. Hey, the taxes when you 621 00:31:36,280 --> 00:31:38,280 Speaker 1: pull it out right, we're just deferring the tax The 622 00:31:38,320 --> 00:31:42,959 Speaker 1: people who are in charge of the Financial Naming Institute 623 00:31:43,000 --> 00:31:44,920 Speaker 1: of America. It's not a real thing, for the record, 624 00:31:44,960 --> 00:31:46,960 Speaker 1: but they are some of the least creative people in 625 00:31:47,000 --> 00:31:49,320 Speaker 1: the world. Like, what happens to the taxes in this thing? 626 00:31:49,520 --> 00:31:51,320 Speaker 1: Do they get deferred? Cool? I guess it's a text 627 00:31:51,360 --> 00:31:55,800 Speaker 1: deferred thing. And that's I like that if you actually 628 00:31:55,920 --> 00:31:57,920 Speaker 1: think through some of the way these things are named 629 00:31:57,960 --> 00:32:01,640 Speaker 1: and break it down, there's some intentionality behind it. Unfortunately, 630 00:32:01,680 --> 00:32:04,920 Speaker 1: the intentionality and the overtness of it, overt simplicity in 631 00:32:04,960 --> 00:32:07,880 Speaker 1: a lot of times, actually makes it convoluted in a 632 00:32:07,960 --> 00:32:10,920 Speaker 1: little bit complicated. But that's neither here nor there. You 633 00:32:11,000 --> 00:32:13,160 Speaker 1: were to talk about mutual funds. In order to understand 634 00:32:13,200 --> 00:32:15,080 Speaker 1: what a mutual fund is, you probably need to have 635 00:32:15,120 --> 00:32:17,959 Speaker 1: a functional understanding what a stock is, as well as 636 00:32:18,000 --> 00:32:20,640 Speaker 1: what a bond is. But we're going to use those 637 00:32:20,800 --> 00:32:22,280 Speaker 1: terms to get to the point of what is a 638 00:32:22,360 --> 00:32:25,600 Speaker 1: mutual fund. So a stock you may have heard that 639 00:32:26,240 --> 00:32:30,840 Speaker 1: referenced to as equity before. A stock is literally just 640 00:32:31,080 --> 00:32:36,080 Speaker 1: ownership in a certain company, a little small proportional ownership 641 00:32:36,120 --> 00:32:39,560 Speaker 1: in a company. Um, And it's really no more complicated 642 00:32:39,600 --> 00:32:42,960 Speaker 1: than that. It's akin to you starting your own company 643 00:32:43,600 --> 00:32:46,640 Speaker 1: like you do, and being able to profit from that 644 00:32:46,720 --> 00:32:49,640 Speaker 1: company the exact same way as if you own stock 645 00:32:49,720 --> 00:32:51,480 Speaker 1: in the company. So I mean think about it with me. 646 00:32:51,520 --> 00:32:54,760 Speaker 1: If you own a company again you do, then you 647 00:32:54,880 --> 00:32:57,680 Speaker 1: can make money from your company one of two different ways. 648 00:32:58,120 --> 00:33:02,760 Speaker 1: Way one is, by oversimplified here, generating revenue. It's not 649 00:33:02,880 --> 00:33:05,800 Speaker 1: actually that you're making money just by generating revenue but 650 00:33:06,640 --> 00:33:09,720 Speaker 1: as owner in a company, this is separate from an 651 00:33:09,800 --> 00:33:13,040 Speaker 1: employee of the company. So maybe a good case study 652 00:33:13,080 --> 00:33:15,640 Speaker 1: would be, like, I come from a family where I'm 653 00:33:15,680 --> 00:33:17,960 Speaker 1: the runt that is not a pharmacist, so I'm going 654 00:33:18,000 --> 00:33:21,400 Speaker 1: to give the equation to pharmacists. If I own a pharmacy, 655 00:33:22,080 --> 00:33:25,960 Speaker 1: I employ myself as pharmacist in the pharmacy, then I'm 656 00:33:25,960 --> 00:33:29,200 Speaker 1: paying myself a salary. I, as owner in the pharmacy, 657 00:33:29,520 --> 00:33:32,560 Speaker 1: can also make money totally separate from that, if the 658 00:33:32,680 --> 00:33:35,920 Speaker 1: company makes more money than I budgeted for. In other words, 659 00:33:35,960 --> 00:33:38,920 Speaker 1: if we run a profit. Right, if we run a profit, 660 00:33:39,040 --> 00:33:41,680 Speaker 1: I as owner have a choice. Say I've made a 661 00:33:41,680 --> 00:33:43,720 Speaker 1: budget for a million dollars one year and it turns 662 00:33:43,720 --> 00:33:46,240 Speaker 1: out i made one point two million dollars, so I've 663 00:33:46,240 --> 00:33:48,720 Speaker 1: got two hundred thousand dollars to do something with. I 664 00:33:48,760 --> 00:33:51,479 Speaker 1: can either take that money and reinvest it within the company, 665 00:33:51,680 --> 00:33:54,000 Speaker 1: which could be good, could allow me to buy a 666 00:33:54,320 --> 00:33:57,920 Speaker 1: pharmacist or some technology, or facelift the building or whatever 667 00:33:57,960 --> 00:33:59,960 Speaker 1: it is that may actually generate more money in the future. 668 00:34:00,400 --> 00:34:03,959 Speaker 1: Or I could pay myself extra. If I pay myself 669 00:34:04,080 --> 00:34:06,840 Speaker 1: extra as a owner, that comes out to me in 670 00:34:06,880 --> 00:34:09,120 Speaker 1: the form of a what we call it dividend. That's 671 00:34:09,160 --> 00:34:13,720 Speaker 1: a I R S accounting term for non salary owner income. 672 00:34:14,600 --> 00:34:16,960 Speaker 1: So when you own a pharmacy and have profit, you 673 00:34:17,000 --> 00:34:18,880 Speaker 1: can pay yourself a dividend. It's just extra money that 674 00:34:18,920 --> 00:34:22,880 Speaker 1: comes to you. Pretty cool. CVS, a publicly traded stock 675 00:34:23,000 --> 00:34:25,800 Speaker 1: that is a pharmacy, is making the exact same decisions 676 00:34:25,800 --> 00:34:27,840 Speaker 1: every single year. But they're not making it with a 677 00:34:28,560 --> 00:34:31,040 Speaker 1: million and one point two million. They're making with a 678 00:34:31,120 --> 00:34:34,719 Speaker 1: billion and one point two billion. And when they've got that, 679 00:34:34,880 --> 00:34:37,520 Speaker 1: actually don't know the numbers. We could publicly available numbers, 680 00:34:37,520 --> 00:34:39,279 Speaker 1: We could get them. But the point is, if they've 681 00:34:39,360 --> 00:34:42,359 Speaker 1: got two hundred million dollars, they're doing at a much 682 00:34:42,440 --> 00:34:45,240 Speaker 1: larger scale. And the people who are making the decision 683 00:34:45,280 --> 00:34:47,400 Speaker 1: of whether to reinvest that money or pay it out 684 00:34:47,440 --> 00:34:50,280 Speaker 1: as a dividend is the board of directors. And everybody 685 00:34:50,320 --> 00:34:53,080 Speaker 1: on that board of directors owns a lot of shares 686 00:34:53,160 --> 00:34:56,080 Speaker 1: in CVS, and so when they decide I'm gonna pay 687 00:34:56,120 --> 00:34:59,240 Speaker 1: out a dollar per share, they own a million shares, 688 00:34:59,320 --> 00:35:02,080 Speaker 1: they get a million dollars. If you own a hundred shares, 689 00:35:02,160 --> 00:35:05,160 Speaker 1: you get a hundred dollars. Just like that makes sense. 690 00:35:05,800 --> 00:35:08,240 Speaker 1: Say that last again, if they pay out one dollar 691 00:35:08,360 --> 00:35:11,120 Speaker 1: per share in the form of a dividend, then it 692 00:35:11,200 --> 00:35:14,320 Speaker 1: comes out proportionally. So if the person sitting on the 693 00:35:14,360 --> 00:35:18,160 Speaker 1: board of directors owns a million shares of CBS, then 694 00:35:18,200 --> 00:35:21,400 Speaker 1: that dividend at a dollar per share means they get 695 00:35:21,440 --> 00:35:24,560 Speaker 1: a one million dollar check. But if you own one 696 00:35:24,680 --> 00:35:28,000 Speaker 1: hundred shares, since you're getting give dividend of one dollar 697 00:35:28,040 --> 00:35:31,280 Speaker 1: per share, then you get a check for one hundred dollars. 698 00:35:31,840 --> 00:35:35,040 Speaker 1: That is what stocks are. So this is an example 699 00:35:35,200 --> 00:35:39,160 Speaker 1: of if you own stocks, how you can make money. Yes, 700 00:35:39,360 --> 00:35:41,880 Speaker 1: this is this is I'm still making my point about stocks. 701 00:35:42,040 --> 00:35:44,000 Speaker 1: So when you say board of directors, you mean people 702 00:35:44,040 --> 00:35:46,520 Speaker 1: that own stock. No, no, no, no no, I'm saying 703 00:35:46,560 --> 00:35:50,120 Speaker 1: they're the decision makers who decide whether or not to 704 00:35:50,160 --> 00:35:52,719 Speaker 1: pay out a dividend or not. And a dividend is 705 00:35:52,800 --> 00:35:55,000 Speaker 1: what gives you money when we have stock. That's right, 706 00:35:55,200 --> 00:35:57,040 Speaker 1: That's right. When it comes to a stock, if you 707 00:35:57,239 --> 00:36:01,040 Speaker 1: own stock, that is let's simplify and say, if the 708 00:36:01,080 --> 00:36:04,640 Speaker 1: stock is profitable, the company is profitable, then the company 709 00:36:04,719 --> 00:36:06,840 Speaker 1: might pay you a dividend. Got it all right, So 710 00:36:06,960 --> 00:36:09,239 Speaker 1: then what's the stock have to do with the mutual fund? Well, 711 00:36:09,440 --> 00:36:13,239 Speaker 1: we're still building our point. That's only one way that 712 00:36:13,320 --> 00:36:15,239 Speaker 1: you can make money with the stock. The other way 713 00:36:15,360 --> 00:36:19,200 Speaker 1: is that again going back to our pharmacy as an example, 714 00:36:19,760 --> 00:36:21,759 Speaker 1: if you own a pharmacy, you can make money from 715 00:36:21,760 --> 00:36:24,359 Speaker 1: that pharmacy when you decide to sell the pharmacy. Now, 716 00:36:24,480 --> 00:36:26,960 Speaker 1: that is a long and laborious and customized processors. You're 717 00:36:26,960 --> 00:36:30,319 Speaker 1: gonna find a buyer and hire an attorney and hire 718 00:36:30,400 --> 00:36:32,680 Speaker 1: a c p A to kind of value the business 719 00:36:32,800 --> 00:36:35,480 Speaker 1: and negotiate over what you're gonna sell it for, and 720 00:36:35,480 --> 00:36:37,200 Speaker 1: then you're gonna have to hire me to figure out 721 00:36:37,239 --> 00:36:39,279 Speaker 1: how money is going to change hands. And it's just 722 00:36:39,680 --> 00:36:42,880 Speaker 1: very involved and engage in a lot to it. Because 723 00:36:42,960 --> 00:36:45,880 Speaker 1: there is no defined market for pharmacies, you have to 724 00:36:45,920 --> 00:36:49,240 Speaker 1: go through a very customized process. But there is, however, 725 00:36:49,360 --> 00:36:53,160 Speaker 1: a defined market for stocks. It's called the stock market, 726 00:36:53,600 --> 00:36:57,040 Speaker 1: and because of that, there is a defined procedural way 727 00:36:57,400 --> 00:37:01,279 Speaker 1: to value stocks and how they are raided every single moment, 728 00:37:01,480 --> 00:37:05,040 Speaker 1: and it's all systematized. Because of that. If you own CVS, 729 00:37:05,200 --> 00:37:09,520 Speaker 1: there are millions of shares of CVS that are traded 730 00:37:09,840 --> 00:37:12,680 Speaker 1: every single day, and as a result of that, you 731 00:37:12,840 --> 00:37:14,880 Speaker 1: get to see if you own a hundred shares in 732 00:37:14,960 --> 00:37:20,360 Speaker 1: CVS to the second what somebody else just paid for 733 00:37:20,600 --> 00:37:24,120 Speaker 1: the same hundred shares that you actually own. And because 734 00:37:24,680 --> 00:37:27,200 Speaker 1: this is not antique furniture that we're talking about where 735 00:37:27,200 --> 00:37:29,680 Speaker 1: you might see on antique road show. Hey, this person's 736 00:37:29,719 --> 00:37:31,800 Speaker 1: got that same Chester drawers that I've got in my 737 00:37:31,840 --> 00:37:34,279 Speaker 1: living room and they just paid a million dollars for it. Well, 738 00:37:34,560 --> 00:37:36,200 Speaker 1: may not be worth a million dollars the one that 739 00:37:36,280 --> 00:37:38,839 Speaker 1: you own, because you might have a scratch, but your 740 00:37:38,880 --> 00:37:42,080 Speaker 1: CVS stock is worth the exact same as what somebody 741 00:37:42,120 --> 00:37:44,880 Speaker 1: else just paid there for that other lot of a 742 00:37:44,960 --> 00:37:48,120 Speaker 1: hundred shares of CVS stock, because it's all literally the 743 00:37:48,200 --> 00:37:52,520 Speaker 1: exact same. It's all systematized. Anyways, when you own stock, 744 00:37:53,320 --> 00:37:55,759 Speaker 1: you own company. And when you own a company, you 745 00:37:55,800 --> 00:37:58,480 Speaker 1: can share in its profits and you can make money 746 00:37:58,520 --> 00:38:01,200 Speaker 1: by selling it on the market. More us makes sense cool. 747 00:38:07,680 --> 00:38:09,440 Speaker 1: The other thing to be aware of is what's called 748 00:38:09,480 --> 00:38:13,480 Speaker 1: a bond. Most people don't know much about bonds, or rather, 749 00:38:15,160 --> 00:38:17,799 Speaker 1: so there you go. Maybe I shouldn't say most people 750 00:38:17,840 --> 00:38:20,280 Speaker 1: don't know. I don't know what it means. More people 751 00:38:20,360 --> 00:38:23,520 Speaker 1: are familiar with stocks than are with bonds. However, the 752 00:38:23,600 --> 00:38:27,800 Speaker 1: bond market is huge, and um, the stock market pails 753 00:38:27,880 --> 00:38:30,319 Speaker 1: in comparison. But really, what a bond is is an 754 00:38:30,360 --> 00:38:33,360 Speaker 1: instrument of debt, uh. And what that means is that, 755 00:38:33,800 --> 00:38:36,160 Speaker 1: you know, let's make the analogy to when you bought 756 00:38:36,200 --> 00:38:38,920 Speaker 1: your house. You looked at the house and you said, hmm, 757 00:38:38,960 --> 00:38:40,279 Speaker 1: I'd like this house, but I don't have the money. 758 00:38:40,320 --> 00:38:42,439 Speaker 1: So I'm gonna go to a bank and you're gonna say, hey, bank, 759 00:38:43,000 --> 00:38:44,440 Speaker 1: I'd like to buy this house, but I don't have 760 00:38:44,520 --> 00:38:45,640 Speaker 1: the money, and I need you to give it to me. 761 00:38:45,680 --> 00:38:48,680 Speaker 1: And the bank looks you up and down and they say, okay, 762 00:38:49,040 --> 00:38:50,920 Speaker 1: we agree. We're gonna give you the money, but we 763 00:38:51,040 --> 00:38:52,400 Speaker 1: need a couple of things from you. We need you 764 00:38:52,480 --> 00:38:54,960 Speaker 1: to promise number one, they're gonna pay us back, and 765 00:38:55,040 --> 00:38:56,920 Speaker 1: we need to promise number two they're gonna pay us 766 00:38:56,960 --> 00:39:00,600 Speaker 1: back in a set amount of time. And then number three, 767 00:39:00,680 --> 00:39:01,880 Speaker 1: we need you to promise it You're to pay U 768 00:39:01,920 --> 00:39:04,719 Speaker 1: back in a set amount of time with interest on top. 769 00:39:05,120 --> 00:39:07,520 Speaker 1: Those are the three components that make up debt. And 770 00:39:07,840 --> 00:39:11,239 Speaker 1: when you talk about CBS again, sorry if anybody from 771 00:39:11,280 --> 00:39:13,480 Speaker 1: CBS is listening here, this is just the thing that 772 00:39:13,560 --> 00:39:16,800 Speaker 1: I've latched onto. This is a hypothetical example, I should 773 00:39:16,800 --> 00:39:21,600 Speaker 1: say ABC Stock, uh instead. But when we talk about 774 00:39:21,800 --> 00:39:25,120 Speaker 1: ABC stock, who's needing to open up a whole bunch 775 00:39:25,200 --> 00:39:28,600 Speaker 1: of new pharmacies or convenience stores. They're not going to 776 00:39:28,640 --> 00:39:31,960 Speaker 1: the bank and asking for three hundred thousand dollars like 777 00:39:32,280 --> 00:39:34,200 Speaker 1: you or I did. They're going to the bank and 778 00:39:34,239 --> 00:39:37,000 Speaker 1: asking for a three hundred million dollars. And since no 779 00:39:37,120 --> 00:39:39,600 Speaker 1: bank has three hundred million dollars is laying around in 780 00:39:39,640 --> 00:39:42,319 Speaker 1: the floor, what the bank does is break that three 781 00:39:42,440 --> 00:39:46,200 Speaker 1: hundred million dollars loan up into tiny little pieces and 782 00:39:46,360 --> 00:39:49,000 Speaker 1: sell those pieces to people like you and me and 783 00:39:49,080 --> 00:39:51,640 Speaker 1: anybody who wants to buy them. And when they sell 784 00:39:51,719 --> 00:39:54,640 Speaker 1: them to you and you buy that bond for let's 785 00:39:54,640 --> 00:39:58,200 Speaker 1: say a thousand dollars, what you're doing is giving ABC 786 00:39:58,400 --> 00:40:01,600 Speaker 1: Corporation a thousand dollars in exchange for their promise to 787 00:40:02,040 --> 00:40:04,799 Speaker 1: pay you back plus interest in a set amount of time. 788 00:40:04,880 --> 00:40:07,879 Speaker 1: Where do you get a bond? Where can I find 789 00:40:09,560 --> 00:40:13,120 Speaker 1: any number of places you mentioned savings bonds? You can't 790 00:40:13,160 --> 00:40:16,600 Speaker 1: actually buy bonds from the United States government, and I 791 00:40:16,640 --> 00:40:20,880 Speaker 1: think it's Treasury Direct dot Gov. I don't remember. Basically, 792 00:40:20,960 --> 00:40:24,399 Speaker 1: then giving the government money and then they're gonna pay 793 00:40:24,440 --> 00:40:27,880 Speaker 1: me back plus money in a time. That's right. So 794 00:40:28,480 --> 00:40:31,480 Speaker 1: you can do that directly through the treasury, you can 795 00:40:31,520 --> 00:40:35,239 Speaker 1: do that through any financial advisor. Anywhere that you would 796 00:40:35,239 --> 00:40:37,400 Speaker 1: be able to buy a stock, you would also be 797 00:40:37,440 --> 00:40:40,240 Speaker 1: able to buy a bond to an extent at least. However, 798 00:40:40,640 --> 00:40:43,440 Speaker 1: a lot of complexities that go into individual securities like that. 799 00:40:43,880 --> 00:40:46,680 Speaker 1: So a lot of people rely on and here's the 800 00:40:46,680 --> 00:40:50,319 Speaker 1: answer to your question, mutual funds. So what we're talking 801 00:40:50,320 --> 00:40:53,759 Speaker 1: about here is mutual funds are in and of themselves, 802 00:40:53,880 --> 00:40:57,480 Speaker 1: will call them tools of aggregation. Bear with me. So 803 00:40:57,800 --> 00:40:59,200 Speaker 1: what I mean by that is, if you have a 804 00:40:59,320 --> 00:41:02,920 Speaker 1: thousand dollar dollars, then you can buy one bond, or 805 00:41:03,480 --> 00:41:07,560 Speaker 1: you can buy six shares of I can't give the 806 00:41:07,640 --> 00:41:09,919 Speaker 1: specific name of the company, but you can buy six 807 00:41:10,000 --> 00:41:14,719 Speaker 1: shares of a very popular computer and phone manufacturer who 808 00:41:14,760 --> 00:41:16,800 Speaker 1: happens to be a very large company on the stock 809 00:41:16,840 --> 00:41:19,600 Speaker 1: exchange today. So that in and of itself doesn't give 810 00:41:19,600 --> 00:41:21,880 Speaker 1: you much, doesn't give you much diversification. You may or 811 00:41:21,920 --> 00:41:25,320 Speaker 1: may not know what you're doing. But if you also 812 00:41:25,600 --> 00:41:28,000 Speaker 1: or rather if you have those choices, you could instead 813 00:41:28,520 --> 00:41:30,360 Speaker 1: give your money to a mutual fund, go buy a 814 00:41:30,440 --> 00:41:32,680 Speaker 1: mutual fund, and what's going to happen is that the 815 00:41:32,920 --> 00:41:35,279 Speaker 1: managers of that mutual fund are going to take your 816 00:41:35,360 --> 00:41:38,560 Speaker 1: thousand dollars and along with a hundred and fifty million 817 00:41:38,640 --> 00:41:41,880 Speaker 1: dollars they already manage, They're going to go buy some stuff, 818 00:41:42,640 --> 00:41:44,640 Speaker 1: and you're then going to own a proportional share of 819 00:41:44,680 --> 00:41:47,600 Speaker 1: all the stuff that they buy. And they might buy stocks, 820 00:41:48,160 --> 00:41:51,160 Speaker 1: or they might buy bonds, or they might buy real estate, 821 00:41:51,360 --> 00:41:54,440 Speaker 1: or they might buy other mutual funds. This is kind 822 00:41:54,440 --> 00:41:56,120 Speaker 1: of proving your point of how this is a very 823 00:41:56,160 --> 00:42:00,720 Speaker 1: overwhelming conversation. There are thirty three thousand and five mutual 824 00:42:00,760 --> 00:42:03,879 Speaker 1: funds in the universe last time I checked, and trying 825 00:42:03,880 --> 00:42:05,440 Speaker 1: to pick one gets to be a little bit of 826 00:42:05,480 --> 00:42:09,160 Speaker 1: a lot. But the reality is all of those funds 827 00:42:09,560 --> 00:42:14,080 Speaker 1: have slightly different prospectuses and buy laws basically laws that 828 00:42:14,280 --> 00:42:17,960 Speaker 1: govern the rules self imposed, that govern what they can 829 00:42:18,040 --> 00:42:20,880 Speaker 1: and cannot do and what they can and cannot invest in. 830 00:42:21,040 --> 00:42:22,960 Speaker 1: And some of them are very broad, some of them 831 00:42:23,000 --> 00:42:25,320 Speaker 1: are very narrow. Some of them say we're going to 832 00:42:25,400 --> 00:42:28,880 Speaker 1: only invest in the companies that invest or that comprise 833 00:42:28,920 --> 00:42:33,040 Speaker 1: the SMP five. Others are more niche and say we're 834 00:42:33,120 --> 00:42:37,360 Speaker 1: only going to invest in small European auto manufacturers hypothetical example. 835 00:42:37,600 --> 00:42:40,720 Speaker 1: But they range in their purpose and in their investment 836 00:42:40,800 --> 00:42:43,239 Speaker 1: strategy and all sorts of different things. But at the 837 00:42:43,320 --> 00:42:45,600 Speaker 1: end of the day, a mutual fund is a way 838 00:42:45,680 --> 00:42:48,360 Speaker 1: to just say, rather than buying a stock because I 839 00:42:48,400 --> 00:42:50,279 Speaker 1: don't know what to do, I'm going to find a 840 00:42:50,320 --> 00:42:52,160 Speaker 1: good mutual fund and just trust to them to sort 841 00:42:52,200 --> 00:42:54,960 Speaker 1: of out. That sounds nice. It does sound nice. There 842 00:42:55,000 --> 00:42:58,040 Speaker 1: are certainly some advantages and disadvantages to that. We we 843 00:42:58,160 --> 00:43:00,640 Speaker 1: have to also answer the question of what's the difference 844 00:43:00,680 --> 00:43:04,040 Speaker 1: between a roth, you know, a wroth for oh one 845 00:43:04,120 --> 00:43:10,319 Speaker 1: k k and then and yes, so hopefully people were 846 00:43:10,360 --> 00:43:13,040 Speaker 1: listening enough to know that we left off our case 847 00:43:13,080 --> 00:43:16,120 Speaker 1: study about the four one k saying that if we 848 00:43:16,560 --> 00:43:18,799 Speaker 1: make a hundred bucks we put tin into the four 849 00:43:18,880 --> 00:43:21,000 Speaker 1: win k, then that allows us to tell the I 850 00:43:21,120 --> 00:43:23,120 Speaker 1: R s we only made nine d If the tin 851 00:43:23,239 --> 00:43:25,320 Speaker 1: sits in the account and it grows and it grows 852 00:43:25,360 --> 00:43:27,080 Speaker 1: and it grows, and we never pay taxes on that 853 00:43:27,160 --> 00:43:30,160 Speaker 1: in the four one k um until we remove the 854 00:43:30,239 --> 00:43:32,040 Speaker 1: money from the four one k, and assuming we do 855 00:43:32,160 --> 00:43:34,400 Speaker 1: it after age fifty nine and a half, then that 856 00:43:34,520 --> 00:43:36,279 Speaker 1: money is just going to be taxed to us as 857 00:43:36,320 --> 00:43:39,040 Speaker 1: if it's income. So take out a hundred bucks, tell 858 00:43:39,040 --> 00:43:40,600 Speaker 1: the I R S you made a hundred bucks. That's 859 00:43:40,600 --> 00:43:43,800 Speaker 1: a four one K. A Wroth for a win K 860 00:43:44,480 --> 00:43:48,040 Speaker 1: so named for Senator William Roth, who I don't remember 861 00:43:48,080 --> 00:43:50,400 Speaker 1: the year, but came up with this idea to tax 862 00:43:50,520 --> 00:43:53,440 Speaker 1: assets in this specific manner, and everybody thought it was 863 00:43:53,480 --> 00:43:55,960 Speaker 1: such a good idea that they literally slapped his name 864 00:43:56,320 --> 00:43:58,680 Speaker 1: as an adjective to describe how the money is going 865 00:43:58,719 --> 00:44:01,520 Speaker 1: to be taxed. And what's going to happen is the 866 00:44:01,600 --> 00:44:05,640 Speaker 1: flip flop of the tax deferred format such that it's 867 00:44:05,760 --> 00:44:10,440 Speaker 1: preferred nailed it. And in our case study, if you 868 00:44:10,520 --> 00:44:12,680 Speaker 1: are making a hundred dollars in a week and you 869 00:44:12,760 --> 00:44:16,360 Speaker 1: put ten dollars into your tax preferred RATH for a 870 00:44:16,440 --> 00:44:19,360 Speaker 1: win K, then you don't get any tax break for 871 00:44:19,440 --> 00:44:21,560 Speaker 1: having done so. So you have to turn to the 872 00:44:21,640 --> 00:44:25,080 Speaker 1: I R S and say I made one dollars this week, 873 00:44:25,440 --> 00:44:30,440 Speaker 1: so your tax deductions don't drop. There's literally no benefit. 874 00:44:30,520 --> 00:44:33,919 Speaker 1: It's just ten dollars out of your paycheck. But once 875 00:44:34,000 --> 00:44:37,440 Speaker 1: it's in that account, you never pay taxes again as 876 00:44:37,520 --> 00:44:40,680 Speaker 1: long as you remove it after age a half. Even 877 00:44:40,760 --> 00:44:43,320 Speaker 1: if it grows correct, it sits in the account and 878 00:44:43,400 --> 00:44:46,440 Speaker 1: it grows totally tax free until you get to retirement 879 00:44:46,520 --> 00:44:48,560 Speaker 1: and you remove it. And if you remove a hundred 880 00:44:48,600 --> 00:44:50,279 Speaker 1: dollars from the account, then you turn to the I 881 00:44:50,400 --> 00:44:54,400 Speaker 1: R S and say zero dollars. So it's the exact 882 00:44:54,480 --> 00:44:57,800 Speaker 1: opposite of the text saying that sounds like a better option. 883 00:44:58,120 --> 00:45:00,840 Speaker 1: But I know that's probably more nuanced than that it 884 00:45:00,960 --> 00:45:04,640 Speaker 1: really is. I'm glad that you say so. Simply put, mathematically, 885 00:45:04,960 --> 00:45:08,439 Speaker 1: if all things are equal, it makes no difference. Neither 886 00:45:08,520 --> 00:45:11,680 Speaker 1: of those inherently makes you more wealthy than the other ones. 887 00:45:12,120 --> 00:45:14,319 Speaker 1: The simple question is, well, hey, would you rather pay 888 00:45:14,840 --> 00:45:17,200 Speaker 1: taxes on the small amount up front or the large 889 00:45:17,239 --> 00:45:20,000 Speaker 1: amount of the back end? And mathematically it just doesn't 890 00:45:20,000 --> 00:45:22,360 Speaker 1: matter if all things are equal. But the reality is 891 00:45:22,560 --> 00:45:25,840 Speaker 1: never are all things equal? And the right answer to 892 00:45:25,920 --> 00:45:28,000 Speaker 1: that question, which one of those is better, the raw 893 00:45:28,280 --> 00:45:31,040 Speaker 1: or the traditional four win ke boils down to where 894 00:45:31,160 --> 00:45:33,680 Speaker 1: is the tax bill going to be higher? Are you 895 00:45:33,760 --> 00:45:35,799 Speaker 1: going to be in a higher tax bracket today than 896 00:45:35,840 --> 00:45:37,800 Speaker 1: you will in retirement, or will you be in a 897 00:45:37,880 --> 00:45:40,279 Speaker 1: higher tax bracket in retirement than you will today? Well, 898 00:45:40,360 --> 00:45:43,000 Speaker 1: the goal is pay taxes when you're in the lower 899 00:45:43,120 --> 00:45:46,759 Speaker 1: tax bracket. So then I RA A is and i 900 00:45:47,040 --> 00:45:51,160 Speaker 1: r A is an individual retirement accounts, so the same thing, 901 00:45:51,360 --> 00:45:53,799 Speaker 1: but you can anybody can have one. I can't say 902 00:45:53,840 --> 00:45:57,439 Speaker 1: anybody can have one, but it is independent of your 903 00:45:57,600 --> 00:46:01,759 Speaker 1: employer for one case, employer sponsored retirement account and an 904 00:46:01,800 --> 00:46:04,480 Speaker 1: IRA is individual. So what would be the benefit of 905 00:46:04,520 --> 00:46:08,680 Speaker 1: picking one over the other if I do have an employer. Yeah, 906 00:46:08,800 --> 00:46:12,839 Speaker 1: so your employer sponsors your four win K, which means 907 00:46:12,880 --> 00:46:16,200 Speaker 1: that they govern the rules of that four win K. Now, 908 00:46:16,360 --> 00:46:19,480 Speaker 1: there's some limits to how creative or not creative they 909 00:46:19,520 --> 00:46:22,560 Speaker 1: can be thanks to ARISSA and some other governing laws 910 00:46:22,960 --> 00:46:25,480 Speaker 1: that they have to operate within, thanks to the unique 911 00:46:25,480 --> 00:46:29,160 Speaker 1: way that the United States is governed. But the I 912 00:46:29,520 --> 00:46:31,759 Speaker 1: r A is not going to be governed by that. 913 00:46:31,920 --> 00:46:34,960 Speaker 1: You're going to have the autonomy to do whatever is 914 00:46:35,080 --> 00:46:39,320 Speaker 1: appropriate for you. That applies to things like investments most notably, 915 00:46:39,480 --> 00:46:41,359 Speaker 1: so four win K is going to have a pre 916 00:46:41,560 --> 00:46:44,680 Speaker 1: selected list of funds available to you, which could be nice. 917 00:46:44,680 --> 00:46:47,080 Speaker 1: It kind of gives you some some lines within to draw, 918 00:46:47,520 --> 00:46:49,680 Speaker 1: and it's up to you to pick which of those 919 00:46:49,840 --> 00:46:52,239 Speaker 1: you know five to twenty or are most appropriate for you. 920 00:46:52,520 --> 00:46:56,960 Speaker 1: But an IRA oftentimes will give you open architecture, which 921 00:46:57,040 --> 00:47:00,279 Speaker 1: means you can buy any stock, or any bond or 922 00:47:00,640 --> 00:47:03,719 Speaker 1: any of the thirty three mutual funds you want. It 923 00:47:03,800 --> 00:47:05,120 Speaker 1: gets to be a lot. And if you know what 924 00:47:05,200 --> 00:47:08,480 Speaker 1: you're doing, then that opportunity is fantastic. If you don't 925 00:47:08,520 --> 00:47:11,879 Speaker 1: know what you're doing, then that's that opportunity is really intimidating. Paralyzing, 926 00:47:12,440 --> 00:47:15,360 Speaker 1: that's probably a good word for it. Yes, I actually 927 00:47:15,400 --> 00:47:18,480 Speaker 1: had a conversation with somebody today like there's even facets 928 00:47:18,520 --> 00:47:20,480 Speaker 1: of this industry that I don't want to say are 929 00:47:20,560 --> 00:47:25,360 Speaker 1: paralyzing to me, but I felt overwhelmed just listening to like, Wow, 930 00:47:26,280 --> 00:47:29,200 Speaker 1: how do you come up with these contracts structures people? 931 00:47:29,280 --> 00:47:31,680 Speaker 1: I don't why? And how how do we pick between? 932 00:47:31,760 --> 00:47:35,880 Speaker 1: This is just all that to say I empathize. Thank you. Okay, 933 00:47:36,080 --> 00:47:38,440 Speaker 1: So for those of you who are wondering what a 934 00:47:38,480 --> 00:47:45,080 Speaker 1: four oh one k is, believe we've hope that minutes. 935 00:47:46,560 --> 00:47:50,000 Speaker 1: But I also think that makes sense, and I think 936 00:47:50,400 --> 00:47:52,840 Speaker 1: people may read that on the internet if they like 937 00:47:52,920 --> 00:47:55,560 Speaker 1: google it, and that is still confusing. So that what 938 00:47:55,760 --> 00:47:58,160 Speaker 1: made sense, and so thank you for answering that. And 939 00:47:58,440 --> 00:48:00,800 Speaker 1: if you still don't understand that you can probably just 940 00:48:01,000 --> 00:48:02,960 Speaker 1: email Nathan. He can tell you. Yeah, we can do 941 00:48:03,080 --> 00:48:05,879 Speaker 1: this again. Um, okay, So I want to make sure 942 00:48:06,200 --> 00:48:08,120 Speaker 1: we ask a couple more questions. You won't get to 943 00:48:08,200 --> 00:48:11,080 Speaker 1: all of them that you guys asked, So I'm very sorry. 944 00:48:11,160 --> 00:48:13,200 Speaker 1: But again, you can always call Nathan and I'm just 945 00:48:13,719 --> 00:48:17,120 Speaker 1: you know, sap time and ask him yourself. Okay, let's 946 00:48:17,120 --> 00:48:19,200 Speaker 1: talk about student lets. That seems to be a particularly 947 00:48:19,280 --> 00:48:23,920 Speaker 1: traumatizing conversation. Yes, it is. So the basis of the 948 00:48:24,000 --> 00:48:26,480 Speaker 1: questions that were asked were basically like, is it okay 949 00:48:26,560 --> 00:48:30,320 Speaker 1: to take out student loans if I can't afford school? 950 00:48:30,400 --> 00:48:33,400 Speaker 1: Is it okay to take out student loans? What do 951 00:48:33,480 --> 00:48:35,719 Speaker 1: I do with them? How do I pay them back? 952 00:48:36,040 --> 00:48:38,160 Speaker 1: What does it mean to consolidate that? I've got to 953 00:48:38,200 --> 00:48:43,160 Speaker 1: be very careful in answering. Yeah, really all of those, 954 00:48:43,239 --> 00:48:45,239 Speaker 1: but particularly the first one, like is it okay to 955 00:48:45,320 --> 00:48:47,680 Speaker 1: take out student loans? We said this a second ago, 956 00:48:48,040 --> 00:48:51,840 Speaker 1: not five minutes ago, when we were talking about you know, 957 00:48:51,920 --> 00:48:56,160 Speaker 1: the perception of debts, and when we're giving what may 958 00:48:56,200 --> 00:49:00,880 Speaker 1: be perceived as advice around uh, some financial topics, we 959 00:49:01,080 --> 00:49:03,680 Speaker 1: have to think about how it could be messed up. Right, 960 00:49:03,760 --> 00:49:06,799 Speaker 1: So I have to be really cautious to say, yeah, 961 00:49:07,040 --> 00:49:09,880 Speaker 1: take out student loans, They're great. I don't think I 962 00:49:09,960 --> 00:49:14,000 Speaker 1: can say that. I can say that student loans can 963 00:49:14,120 --> 00:49:18,799 Speaker 1: and do open up opportunities. And if student loans are 964 00:49:18,840 --> 00:49:21,720 Speaker 1: the only way to open up the opportunity for yourself 965 00:49:21,840 --> 00:49:25,400 Speaker 1: that you are pursuing, then I think that's the answer, 966 00:49:25,560 --> 00:49:30,279 Speaker 1: plain and simple. Morally. Are student loans wrong? No, Mathematically 967 00:49:30,320 --> 00:49:33,600 Speaker 1: our student loans bad. You know, it's taking out a 968 00:49:33,600 --> 00:49:35,839 Speaker 1: student loan is less good than being given a check 969 00:49:36,160 --> 00:49:38,120 Speaker 1: just for free, right because you gotta pay that back 970 00:49:38,200 --> 00:49:40,560 Speaker 1: in You're gonna have to pay back plus interest. However, 971 00:49:41,239 --> 00:49:42,680 Speaker 1: one of the things that we're gonna talk about, I 972 00:49:42,840 --> 00:49:47,920 Speaker 1: assume are some of the student loan forgiveness programs that 973 00:49:47,920 --> 00:49:51,399 Speaker 1: are available today. And I'm gonna make a quick note 974 00:49:51,440 --> 00:49:54,239 Speaker 1: of social commentary to prove my point, not to come 975 00:49:54,280 --> 00:49:56,759 Speaker 1: back to my point here. There's a whole lot of 976 00:49:56,880 --> 00:50:02,040 Speaker 1: conversation today politically socially around kind of a movement to 977 00:50:03,200 --> 00:50:05,960 Speaker 1: make education free. Don't want to say that's right or 978 00:50:06,000 --> 00:50:07,920 Speaker 1: wrong by any means, but what I do want to 979 00:50:07,960 --> 00:50:11,920 Speaker 1: say is that there's already a lot of infrastructure in 980 00:50:12,040 --> 00:50:18,759 Speaker 1: place to make education expenses not disproportionately burdensome. That's kind 981 00:50:18,800 --> 00:50:22,399 Speaker 1: of empty verbiage. I feel like, however, it's it's really 982 00:50:22,600 --> 00:50:27,160 Speaker 1: important because all the different forgiveness programs that exist today, 983 00:50:27,200 --> 00:50:30,120 Speaker 1: I'm going to oversimplify two of them. One is the 984 00:50:30,280 --> 00:50:33,960 Speaker 1: public service loan forgiveness program that says you're going to 985 00:50:34,040 --> 00:50:37,600 Speaker 1: pay back ten percent of your discretionary income each year 986 00:50:38,000 --> 00:50:40,120 Speaker 1: for the next ten years while you work for a 987 00:50:40,160 --> 00:50:43,200 Speaker 1: nonprofit organization or any number of them, and then at 988 00:50:43,239 --> 00:50:45,000 Speaker 1: the end of that program, what's left on your balance 989 00:50:45,040 --> 00:50:48,000 Speaker 1: is going to be forgiven. That's fantastic. Well, here's some 990 00:50:48,080 --> 00:50:50,880 Speaker 1: quick math here. Ten percent of your discretionary income. I 991 00:50:50,880 --> 00:50:53,360 Speaker 1: won't go into the definition of what is discretionary income, 992 00:50:53,440 --> 00:50:57,040 Speaker 1: but it's less than your total income. But if we 993 00:50:57,120 --> 00:50:59,200 Speaker 1: forget about that and just say ten percent of your income, 994 00:50:59,560 --> 00:51:02,080 Speaker 1: then to in percent of your income for ten years 995 00:51:02,520 --> 00:51:06,280 Speaker 1: equals your income. Right. So, when we're talking about student 996 00:51:06,360 --> 00:51:09,120 Speaker 1: loans and stepping into a question of boy, I might 997 00:51:09,200 --> 00:51:11,080 Speaker 1: take on some student loans, and I'm taking might take 998 00:51:11,120 --> 00:51:13,439 Speaker 1: on a ton of student loans, and I would really 999 00:51:13,480 --> 00:51:16,520 Speaker 1: love it if education is free. Well, the infrastructure that's 1000 00:51:16,520 --> 00:51:19,640 Speaker 1: in place right now for those working for nonprofit organizations 1001 00:51:19,640 --> 00:51:22,239 Speaker 1: at least says you're not going to pay back more 1002 00:51:22,320 --> 00:51:28,360 Speaker 1: than one time's your income. Roughly oversimplified calculation, But hopefully 1003 00:51:28,400 --> 00:51:31,800 Speaker 1: that puts in context for people. And that means that 1004 00:51:32,840 --> 00:51:35,759 Speaker 1: somebody who goes to school and spends a lot of 1005 00:51:35,800 --> 00:51:39,839 Speaker 1: money to become a therapist has different student loan expectations 1006 00:51:39,920 --> 00:51:41,759 Speaker 1: for somebody who goes to school and spends a lot 1007 00:51:41,800 --> 00:51:45,799 Speaker 1: of money to become a neurosurgeon, because your incomes are different. Right, 1008 00:51:45,880 --> 00:51:48,840 Speaker 1: But this is if you work for a nonprofit. Correct, 1009 00:51:49,120 --> 00:51:52,000 Speaker 1: But the same concept applies even if you don't work 1010 00:51:52,040 --> 00:51:55,279 Speaker 1: for a nonprofit. There are other forgiveness programs available through 1011 00:51:55,520 --> 00:51:58,359 Speaker 1: the pay as you earn plan and the revised pays 1012 00:51:58,400 --> 00:52:00,320 Speaker 1: you earn plan that the pay as you are in 1013 00:52:00,400 --> 00:52:03,720 Speaker 1: plan will forgive what's left on your debt after twenty 1014 00:52:03,840 --> 00:52:07,480 Speaker 1: years of those discretionary income ten percent of discretionary income payments. 1015 00:52:08,160 --> 00:52:12,640 Speaker 1: So again I oversimplify, but twenty years of ten percent 1016 00:52:12,760 --> 00:52:17,760 Speaker 1: of your of your income equates to roughly again oversimplified, 1017 00:52:18,480 --> 00:52:21,840 Speaker 1: two times your income. And so if you're earning thirty 1018 00:52:21,920 --> 00:52:25,400 Speaker 1: thou government says, boy, we don't want to disproportionately burden 1019 00:52:25,480 --> 00:52:28,400 Speaker 1: you with more than sixty dollars of debt repayment. If 1020 00:52:28,400 --> 00:52:31,160 Speaker 1: you're earning four thousand, then we're going to say, well, 1021 00:52:31,239 --> 00:52:34,840 Speaker 1: we don't want to disproportionately burden you in quotations with 1022 00:52:34,960 --> 00:52:38,320 Speaker 1: more than eight hundred thousand dollars of payments. Reality is, 1023 00:52:38,360 --> 00:52:40,160 Speaker 1: if you're in that situation, then you're probably not doing 1024 00:52:40,200 --> 00:52:42,160 Speaker 1: it off right. That's right. The point that I'm making 1025 00:52:42,280 --> 00:52:44,520 Speaker 1: is there is a lot of social movement and political 1026 00:52:44,600 --> 00:52:48,240 Speaker 1: movement to make education free and independent of the validity 1027 00:52:48,280 --> 00:52:51,120 Speaker 1: of that idea, there is infrastructure in place right now 1028 00:52:51,800 --> 00:52:54,680 Speaker 1: to ensure that student loan debt that you take on 1029 00:52:54,960 --> 00:52:57,960 Speaker 1: doesn't become an undo burden for you. But this is 1030 00:52:58,040 --> 00:53:00,960 Speaker 1: the thing about that. My blood is a little bit 1031 00:53:01,040 --> 00:53:05,799 Speaker 1: boiling right now because no nobody explains that to mebody, 1032 00:53:05,880 --> 00:53:08,360 Speaker 1: And when you read about it, it doesn't make sense 1033 00:53:08,680 --> 00:53:11,279 Speaker 1: like I had to take out student loans to go 1034 00:53:11,360 --> 00:53:14,600 Speaker 1: to school because I did not have any money when 1035 00:53:14,640 --> 00:53:16,560 Speaker 1: I graduate college and I wanted to go to grad school. 1036 00:53:16,640 --> 00:53:19,520 Speaker 1: I have tried to understand this stuff, and it is 1037 00:53:19,600 --> 00:53:23,800 Speaker 1: so confusing. Why do people let this is not a 1038 00:53:23,840 --> 00:53:25,480 Speaker 1: question for you, this is a question for the universe. 1039 00:53:25,640 --> 00:53:28,799 Speaker 1: A lot of people let people do this without being like, hey, 1040 00:53:29,560 --> 00:53:31,480 Speaker 1: you can take out these loans, let me explain to 1041 00:53:31,560 --> 00:53:34,640 Speaker 1: you how they work in how could I know? There's 1042 00:53:34,640 --> 00:53:38,319 Speaker 1: probably universe, would say, because I'm not responsible for your 1043 00:53:38,320 --> 00:53:40,960 Speaker 1: own okay here, sure, sure, I think it's just like 1044 00:53:41,080 --> 00:53:44,760 Speaker 1: I think there should be more education, especially in higher 1045 00:53:44,880 --> 00:53:50,400 Speaker 1: education where a lot of people are Wow, a lot 1046 00:53:50,440 --> 00:53:53,600 Speaker 1: of people are taking out loans to be there, but 1047 00:53:53,719 --> 00:53:56,120 Speaker 1: nobody's talking about it, and people are just being like, oh, 1048 00:53:56,360 --> 00:53:58,400 Speaker 1: my student loans. Have somebody student loans didn't loans? It 1049 00:53:58,640 --> 00:54:01,400 Speaker 1: like the student word student alone to me comes with 1050 00:54:01,520 --> 00:54:07,879 Speaker 1: this like heavy, icky, like burdensome, like aftertaste when from 1051 00:54:07,960 --> 00:54:10,400 Speaker 1: that conversation and there's more to it. It doesn't have 1052 00:54:10,560 --> 00:54:13,560 Speaker 1: to be that way, And it's like, well, why why 1053 00:54:13,680 --> 00:54:17,000 Speaker 1: is nobody having this conversation? It really is shocking to 1054 00:54:17,080 --> 00:54:18,800 Speaker 1: me on a lot of different levels that it's not 1055 00:54:19,000 --> 00:54:21,440 Speaker 1: happening and we're not here to talk about this, but 1056 00:54:21,520 --> 00:54:24,800 Speaker 1: I'm going to quickly make an unashamed plug here and 1057 00:54:24,960 --> 00:54:27,560 Speaker 1: that this is a thing that is sort of a 1058 00:54:27,800 --> 00:54:32,840 Speaker 1: passion piece for me, just the sense of lack of 1059 00:54:32,920 --> 00:54:36,440 Speaker 1: financial preparedness, or at least lack of financial education and 1060 00:54:36,560 --> 00:54:42,520 Speaker 1: preparedness coming out of at least the healthcare education systems. 1061 00:54:42,719 --> 00:54:44,960 Speaker 1: To your point, like, if we're going to strap all 1062 00:54:45,000 --> 00:54:48,480 Speaker 1: these students with tons of debt, then why aren't we 1063 00:54:48,800 --> 00:54:52,520 Speaker 1: educating them on this? And there's some very real reasons 1064 00:54:52,600 --> 00:54:54,320 Speaker 1: as to why they're not and why they can't. And 1065 00:54:54,360 --> 00:54:58,080 Speaker 1: they've got curricular bodies and curricular structures that they have 1066 00:54:58,200 --> 00:55:01,680 Speaker 1: to meet and standard and I mean all those things 1067 00:55:01,719 --> 00:55:03,600 Speaker 1: that just get in the way. Right, But this is 1068 00:55:03,640 --> 00:55:06,440 Speaker 1: a thing that my sister and I actually started a 1069 00:55:06,719 --> 00:55:12,800 Speaker 1: separate side project business to hopefully addressed and raise the 1070 00:55:12,920 --> 00:55:17,200 Speaker 1: culture of financial preparedness in at least healthcare education settings, 1071 00:55:17,480 --> 00:55:20,640 Speaker 1: to actually open the door to have those conversations. And 1072 00:55:21,040 --> 00:55:24,640 Speaker 1: our vision right now is mostly mostly revolving around just 1073 00:55:25,080 --> 00:55:29,200 Speaker 1: print material as well as asynchronous web based virtual courses 1074 00:55:29,800 --> 00:55:32,920 Speaker 1: that we're hoping to be available in as many healthcare 1075 00:55:33,040 --> 00:55:35,840 Speaker 1: education colleges as we can come up with over the 1076 00:55:35,880 --> 00:55:38,000 Speaker 1: course of time. But at the end of the day, 1077 00:55:38,040 --> 00:55:40,000 Speaker 1: I think I think you're right. It is kind of 1078 00:55:40,040 --> 00:55:42,440 Speaker 1: a shame that people are going to school without any 1079 00:55:42,560 --> 00:55:46,520 Speaker 1: real preparation and any real context or education around it. 1080 00:55:46,880 --> 00:55:51,080 Speaker 1: So I also separate comment also teaching at University of 1081 00:55:51,080 --> 00:55:54,640 Speaker 1: Tennessee in the Health Sciences Center, and yesterday ended. It 1082 00:55:54,760 --> 00:55:58,480 Speaker 1: was the last class of this semester for me and 1083 00:55:58,840 --> 00:56:01,759 Speaker 1: I always have a open discussion around like, hey, this 1084 00:56:01,920 --> 00:56:03,880 Speaker 1: is an elective course, why did you take it? I 1085 00:56:03,920 --> 00:56:06,279 Speaker 1: wrote down some notes on what you said class number one, 1086 00:56:06,600 --> 00:56:08,720 Speaker 1: and so I want to test this. Did we actually 1087 00:56:08,719 --> 00:56:11,120 Speaker 1: accomplished some of these things? And what did we learn, 1088 00:56:11,200 --> 00:56:14,759 Speaker 1: what did we not learn, etcetera. And I'm still genuinely 1089 00:56:14,840 --> 00:56:20,280 Speaker 1: surprised that so many people, even halfway through their training, 1090 00:56:20,800 --> 00:56:24,320 Speaker 1: are surprised to learn about all the different options for 1091 00:56:24,600 --> 00:56:27,799 Speaker 1: student loan repayments. And one of them, who was may 1092 00:56:27,880 --> 00:56:31,120 Speaker 1: have been the smartest kid in the class, sat down 1093 00:56:31,239 --> 00:56:33,759 Speaker 1: just like you know, I just thought there was ten years, 1094 00:56:33,800 --> 00:56:35,640 Speaker 1: twenty years, or thirty years to pay my loans off, 1095 00:56:35,680 --> 00:56:36,960 Speaker 1: and I was just gonna have to buckle down and 1096 00:56:37,000 --> 00:56:38,880 Speaker 1: get it done and that was it. But the reality 1097 00:56:39,000 --> 00:56:41,960 Speaker 1: is is there's a lot to consider, and I'm really 1098 00:56:42,000 --> 00:56:44,120 Speaker 1: excited to now know it. Yeah, that is That is 1099 00:56:44,160 --> 00:56:47,080 Speaker 1: a lasting takeaway from me. Anytime I'm around people with 1100 00:56:47,239 --> 00:56:49,320 Speaker 1: student loans, it's like, boy, I wish we could just 1101 00:56:49,520 --> 00:56:53,200 Speaker 1: tell you sooner, teach you sooner. Well, because one I 1102 00:56:53,360 --> 00:56:56,239 Speaker 1: think that if the education could help make it not 1103 00:56:56,360 --> 00:56:59,440 Speaker 1: so scary. So maybe people who have always wanted to 1104 00:56:59,520 --> 00:57:02,080 Speaker 1: go back to school for something or like, oh, I 1105 00:57:02,080 --> 00:57:04,880 Speaker 1: actually can do this, it won't ruin my life. And 1106 00:57:04,960 --> 00:57:07,200 Speaker 1: then the people who have done that aren't like, oh 1107 00:57:07,320 --> 00:57:09,200 Speaker 1: I can't believe I did this, and now I'm going 1108 00:57:09,280 --> 00:57:12,279 Speaker 1: to be like suffering forever and it's just this like 1109 00:57:12,920 --> 00:57:15,800 Speaker 1: dark rain cloud that's going to follow me everywhere, and 1110 00:57:16,360 --> 00:57:18,480 Speaker 1: it neither of those has to be true. And we 1111 00:57:18,520 --> 00:57:20,800 Speaker 1: don't have to ignore it either, because I think the 1112 00:57:20,840 --> 00:57:23,200 Speaker 1: dark rain cloud, it's like, well, it's not raining yet, 1113 00:57:23,240 --> 00:57:25,520 Speaker 1: so we're just gonna let it be back there. We're 1114 00:57:25,560 --> 00:57:27,800 Speaker 1: also going to just never turn around, so we just 1115 00:57:27,880 --> 00:57:29,920 Speaker 1: don't see it. And if I don't see it, then 1116 00:57:29,960 --> 00:57:33,120 Speaker 1: it's not really That was I think in the first 1117 00:57:33,280 --> 00:57:37,120 Speaker 1: two sentences of a book that I wrote with my 1118 00:57:37,240 --> 00:57:40,760 Speaker 1: sister last year to this material in our forward was 1119 00:57:40,880 --> 00:57:44,240 Speaker 1: alluding to that exact concept. Well, you could bury your 1120 00:57:44,240 --> 00:57:46,520 Speaker 1: head in the sand about this stuff, but that might 1121 00:57:46,560 --> 00:57:50,040 Speaker 1: work out or probably won't. Don't be afraid of student loans. 1122 00:57:50,120 --> 00:57:54,680 Speaker 1: I think it's the takeaway. And uh know that help 1123 00:57:54,960 --> 00:57:58,120 Speaker 1: is available, though it will not be fed to you. Well, 1124 00:57:58,160 --> 00:58:01,080 Speaker 1: who do you go to Yeah, that's a really really, 1125 00:58:01,160 --> 00:58:04,439 Speaker 1: really great, great question. Hopefully the school that you're going 1126 00:58:04,520 --> 00:58:08,000 Speaker 1: to has some resources available. I mean maybe they have, 1127 00:58:08,400 --> 00:58:11,480 Speaker 1: you know, a financial planning course in the curriculum. Obviously 1128 00:58:11,720 --> 00:58:13,600 Speaker 1: I teach at University of Tennessee and the College of 1129 00:58:13,600 --> 00:58:18,200 Speaker 1: Pharmacy and they do. Obviously not everywhere does, right, So yeah, 1130 00:58:18,240 --> 00:58:21,360 Speaker 1: hopefully it's integrated in there. There are professionals. I mean, 1131 00:58:21,520 --> 00:58:23,440 Speaker 1: this is something that I know a ton about, is 1132 00:58:23,600 --> 00:58:26,360 Speaker 1: kind of an unfortunate specialization in my career, and there 1133 00:58:26,600 --> 00:58:29,800 Speaker 1: is actually what is that phase for? Okay, I think 1134 00:58:29,840 --> 00:58:33,000 Speaker 1: this is a fair point. I think it's confusing for 1135 00:58:33,200 --> 00:58:35,439 Speaker 1: people because one of the questions I'm gonna I'm gonna 1136 00:58:35,720 --> 00:58:37,959 Speaker 1: circle what you're saying into the last question that will answer. 1137 00:58:38,200 --> 00:58:42,680 Speaker 1: Because when somebody said our financial advisors slash planners worth it, 1138 00:58:42,960 --> 00:58:45,600 Speaker 1: what do they even do? And I think that leads 1139 00:58:45,640 --> 00:58:49,120 Speaker 1: into the question of like, well, I have loans, so 1140 00:58:49,240 --> 00:58:51,520 Speaker 1: I have negative money, So I don't want to pay 1141 00:58:51,600 --> 00:58:53,800 Speaker 1: somebody to ask questions about my negative money. What are 1142 00:58:53,840 --> 00:58:56,400 Speaker 1: they going to do? And so I think that concept 1143 00:58:56,560 --> 00:58:59,320 Speaker 1: is confusing for people who are like maybe they'll have loans, 1144 00:58:59,480 --> 00:59:03,360 Speaker 1: maybe they just like maybe trug whatever and so it's like, well, 1145 00:59:03,680 --> 00:59:05,320 Speaker 1: what do they even do? Is it's worth it for 1146 00:59:05,400 --> 00:59:07,720 Speaker 1: me to pay somebody to help me with money? I 1147 00:59:07,800 --> 00:59:10,440 Speaker 1: don't feel like I have. Yeah, I'm going to oversimplify 1148 00:59:10,840 --> 00:59:14,160 Speaker 1: what should be the job of all financial planners, no 1149 00:59:14,280 --> 00:59:16,640 Speaker 1: matter who they're talking to, no matter how old the 1150 00:59:16,760 --> 00:59:19,080 Speaker 1: client is, or how wealthy the client is, rich the 1151 00:59:19,120 --> 00:59:21,400 Speaker 1: client is, or poor the clients, the job of a 1152 00:59:21,560 --> 00:59:25,120 Speaker 1: financial planner should be to be committed to making sure 1153 00:59:25,160 --> 00:59:26,920 Speaker 1: that the client does everything they can to make sure 1154 00:59:26,920 --> 00:59:30,440 Speaker 1: they're wealthy when they grow up. Hopefully is that simple. Historically, 1155 00:59:30,560 --> 00:59:33,080 Speaker 1: what that has meant is that, you know, we've had 1156 00:59:33,120 --> 00:59:38,360 Speaker 1: a really good canvas uh to make an impact on 1157 00:59:38,480 --> 00:59:42,240 Speaker 1: people's investments. And so that's really the core deliverable for 1158 00:59:42,600 --> 00:59:46,840 Speaker 1: financial planners and advisors is to advise on invested dollars 1159 00:59:46,960 --> 00:59:49,560 Speaker 1: or dollars that could be invested, whether they're already invested 1160 00:59:49,720 --> 00:59:53,960 Speaker 1: or not. A lot of people that already have dollars invested. 1161 00:59:54,160 --> 00:59:56,680 Speaker 1: I mean, listen, if you've got a million dollars to invest, 1162 00:59:56,800 --> 00:59:59,720 Speaker 1: then you think about the cost of a bad decision 1163 00:59:59,800 --> 01:00:04,800 Speaker 1: with the million dollars is potentially huge, and so it's 1164 01:00:04,920 --> 01:00:07,400 Speaker 1: very easy to think a ha yes, a financial planner 1165 01:00:07,480 --> 01:00:11,040 Speaker 1: will help me avoid some very costly mistakes. If you're 1166 01:00:11,040 --> 01:00:13,360 Speaker 1: talking about investing a thousand dollars, the cost of your 1167 01:00:13,400 --> 01:00:16,920 Speaker 1: mistake is really not that much unless you consider the 1168 01:00:17,000 --> 01:00:19,400 Speaker 1: fact that most people that we're talking about who have 1169 01:00:19,480 --> 01:00:22,040 Speaker 1: a thousand dollars to invest are very early in their career. 1170 01:00:22,480 --> 01:00:27,320 Speaker 1: And I'm a very firm believer that people's long term 1171 01:00:27,480 --> 01:00:31,160 Speaker 1: wealth is less defined by their income, their assets, and 1172 01:00:31,200 --> 01:00:35,640 Speaker 1: their liabilities and more defined by their habits, Especially if 1173 01:00:35,640 --> 01:00:37,600 Speaker 1: I'm talking to somebody who's I don't know, let's just 1174 01:00:37,680 --> 01:00:40,760 Speaker 1: say under age forty. Whatever your habits are can be 1175 01:00:40,920 --> 01:00:44,120 Speaker 1: messed up and have a huge negative impact on you 1176 01:00:44,680 --> 01:00:46,760 Speaker 1: or a hugely positive impact on you. I think some 1177 01:00:46,840 --> 01:00:49,760 Speaker 1: of the wealthiest clients that I work with relative to 1178 01:00:49,800 --> 01:00:54,760 Speaker 1: their age, have always made fine money, but have never 1179 01:00:54,960 --> 01:01:00,040 Speaker 1: been much above the average income of people that I 1180 01:01:00,120 --> 01:01:03,360 Speaker 1: work with. But they've just they've just got good habits. 1181 01:01:03,760 --> 01:01:06,040 Speaker 1: They've done it right from the onset, they've had their 1182 01:01:06,080 --> 01:01:09,640 Speaker 1: head screwed on straight, and it's just been easy for him. 1183 01:01:09,920 --> 01:01:13,680 Speaker 1: They have done nothing magic, they've done nothing fancy. They've 1184 01:01:13,760 --> 01:01:16,560 Speaker 1: just executed, and they've executed the right way. And we 1185 01:01:16,640 --> 01:01:20,160 Speaker 1: did it from an early age and now they're too late. 1186 01:01:20,520 --> 01:01:23,840 Speaker 1: It's never too late, is never too late. The earlier 1187 01:01:23,920 --> 01:01:25,480 Speaker 1: you can do it, the better. I mean, this is 1188 01:01:25,560 --> 01:01:27,200 Speaker 1: one client that I started working with when they were 1189 01:01:27,240 --> 01:01:31,120 Speaker 1: twenty four and yeah, now they're well, they're just trugging 1190 01:01:31,120 --> 01:01:33,600 Speaker 1: along doing great. Yeah. I would say that the longer 1191 01:01:33,680 --> 01:01:36,320 Speaker 1: you wait, the less opportunity you've got. And you never 1192 01:01:36,400 --> 01:01:38,200 Speaker 1: have more time in front of you than you do today, 1193 01:01:38,640 --> 01:01:41,280 Speaker 1: So capitalize on it. Our financial planners worth it, and 1194 01:01:41,360 --> 01:01:43,680 Speaker 1: what do they actually do? Hopefully we're getting the concept 1195 01:01:44,360 --> 01:01:45,880 Speaker 1: at the end of the day that plays out in 1196 01:01:45,920 --> 01:01:48,160 Speaker 1: a number of different ways though. I mean, investments is 1197 01:01:48,280 --> 01:01:52,240 Speaker 1: just the natural playground for a financial planner, but it 1198 01:01:52,480 --> 01:01:56,880 Speaker 1: is the industry is beginning to acknowledge much more so 1199 01:01:57,160 --> 01:02:01,480 Speaker 1: nowadays that wealth is much more comprehensive than investments. And 1200 01:02:02,160 --> 01:02:05,080 Speaker 1: I don't necessarily want to say it's a new generation idea, 1201 01:02:05,320 --> 01:02:07,520 Speaker 1: but it's certainly not a This is not a comment 1202 01:02:07,600 --> 01:02:09,640 Speaker 1: on age or actual generation. But it's not an old 1203 01:02:09,680 --> 01:02:12,880 Speaker 1: generation idea. It's just conceptually this is on the newer 1204 01:02:13,000 --> 01:02:15,760 Speaker 1: end of the spectrum, and so there are a number 1205 01:02:15,960 --> 01:02:19,800 Speaker 1: of It's a very significant portion of the industry is 1206 01:02:20,280 --> 01:02:23,120 Speaker 1: committed to working with people on a holistic approach like 1207 01:02:23,200 --> 01:02:27,560 Speaker 1: that and really affect their habits, and uh spend more 1208 01:02:27,640 --> 01:02:30,680 Speaker 1: time there than let's say, just focusing on well do 1209 01:02:30,800 --> 01:02:33,320 Speaker 1: you buy this stock or that stock? And so, like 1210 01:02:33,440 --> 01:02:36,920 Speaker 1: I say, I've got an unfortunate specialization in student loans. 1211 01:02:37,000 --> 01:02:39,360 Speaker 1: That's because twelve years and ago, when I started in 1212 01:02:39,400 --> 01:02:42,440 Speaker 1: this career, the people who were interested in listening to 1213 01:02:42,560 --> 01:02:45,360 Speaker 1: me needed to answer the question what did they need 1214 01:02:45,440 --> 01:02:47,600 Speaker 1: to do with their student loans? And they look to 1215 01:02:47,680 --> 01:02:49,080 Speaker 1: me to be a resource for that. And I figured 1216 01:02:49,080 --> 01:02:51,320 Speaker 1: out how to be a resource for that, and I've 1217 01:02:51,400 --> 01:02:55,200 Speaker 1: just kind of grown in that competency and now have 1218 01:02:55,960 --> 01:02:58,200 Speaker 1: I mean, I spend a whole lot of time talking 1219 01:02:58,240 --> 01:03:01,280 Speaker 1: to people about how to handle their student loans as 1220 01:03:01,360 --> 01:03:05,440 Speaker 1: a part of pursuing long term wealth success. There's a 1221 01:03:05,480 --> 01:03:09,680 Speaker 1: lot more questions, and I think that means that if 1222 01:03:09,760 --> 01:03:14,040 Speaker 1: you still want answers, hopefully this conversation has made it 1223 01:03:14,520 --> 01:03:17,840 Speaker 1: less scary or shameful and you can find somebody to 1224 01:03:18,040 --> 01:03:20,520 Speaker 1: help answer those questions. Can you work with anybody, no 1225 01:03:20,600 --> 01:03:23,040 Speaker 1: matter where they live. I'm not governed the way that 1226 01:03:23,120 --> 01:03:27,720 Speaker 1: you are. No, So theoretically yes, there's some challenge working 1227 01:03:27,800 --> 01:03:30,960 Speaker 1: with ex pats, people living outside of the country, but 1228 01:03:31,280 --> 01:03:34,120 Speaker 1: within the United States. I have clients in Alaska and 1229 01:03:34,200 --> 01:03:37,320 Speaker 1: in Florida for Contay, so majority of people that are 1230 01:03:37,360 --> 01:03:41,040 Speaker 1: listening to the right pretty much the extremes of it um. 1231 01:03:41,360 --> 01:03:45,160 Speaker 1: So if you actually do want to contact Nathan, you can. 1232 01:03:45,640 --> 01:03:47,720 Speaker 1: We'll put your website in the show notes. You just 1233 01:03:48,000 --> 01:03:50,080 Speaker 1: click a nice little link and it takes you right there. 1234 01:03:50,680 --> 01:03:54,160 Speaker 1: And if they want to follow you on social media, 1235 01:03:54,640 --> 01:03:57,959 Speaker 1: even though you're new at being present, you're not present 1236 01:03:58,040 --> 01:04:00,400 Speaker 1: on social media. Where can they follow you? They can 1237 01:04:00,400 --> 01:04:06,080 Speaker 1: follow me at Karen Financial Instagram. Oh that's on Twitter. Twitter. 1238 01:04:06,280 --> 01:04:09,200 Speaker 1: You don't have an Instagram. I have a personal Instagram. Okay, 1239 01:04:09,280 --> 01:04:13,360 Speaker 1: so do you want check me out at w Nathan 1240 01:04:13,520 --> 01:04:17,960 Speaker 1: Green with the extra check them out. We'll put all 1241 01:04:18,000 --> 01:04:19,320 Speaker 1: of that in the show notes. You can just click 1242 01:04:19,320 --> 01:04:21,280 Speaker 1: all of that stuff. And this is going to be 1243 01:04:21,320 --> 01:04:23,600 Speaker 1: a little motivator for you. Maybe get that Twitter up 1244 01:04:23,640 --> 01:04:26,560 Speaker 1: and going. If you get some followers, and you'll yeah, 1245 01:04:26,840 --> 01:04:30,080 Speaker 1: I gotta start somewhere now. Okay, Well, thank you for 1246 01:04:30,480 --> 01:04:33,240 Speaker 1: this conversation and thank you guys for listening. If you 1247 01:04:33,280 --> 01:04:36,200 Speaker 1: guys have more questions, don't ask them to me, you 1248 01:04:36,320 --> 01:04:37,960 Speaker 1: can ask them to Nathan, but if you do have 1249 01:04:38,120 --> 01:04:41,000 Speaker 1: questions in general, remember you can always email Katherine at 1250 01:04:41,120 --> 01:04:44,160 Speaker 1: you Need Therapy Podcast dot com and those might show 1251 01:04:44,280 --> 01:04:47,600 Speaker 1: up on a Couch Talks episode, so you can do that, 1252 01:04:47,760 --> 01:04:50,200 Speaker 1: and then you can always follow me at at cat 1253 01:04:50,280 --> 01:04:53,560 Speaker 1: dot defata and at you Need Therpy Podcast and that'll 1254 01:04:53,600 --> 01:04:54,600 Speaker 1: do it. Bye, guys,