WEBVTT - Cliff Notes: How to Invest your 401k with Kezia Williams 0:00:00.040 --> 0:00:03.600 An illegal alien from Guatemala charged with raping a child 0:00:03.680 --> 0:00:07.480 in Massachusetts. An MS thirteen gang member from Al Salvador 0:00:07.720 --> 0:00:11.840 accused of murdering a Texas man of Venezuelan charged with 0:00:11.920 --> 0:00:15.840 filming and selling child pornography in Michigan. These are just 0:00:15.920 --> 0:00:19.680 some of the heinous migrant criminals caught because of President 0:00:19.720 --> 0:00:23.320 Donald J. Trump's leadership. I'm Christy nom the United States 0:00:23.320 --> 0:00:28.120 Secretary of Homeland Security. Under President Trump, attempted illegal border 0:00:28.160 --> 0:00:31.680 crossings are at the lowest levels ever recorded, and over 0:00:31.760 --> 0:00:34.960 one hundred thousand illegal aliens have been arrested. If you 0:00:35.040 --> 0:00:38.920 are here illegally, your next you will be fined nearly 0:00:39.000 --> 0:00:43.000 one thousand dollars a day, imprisoned, and deported. You will 0:00:43.040 --> 0:00:46.680 never return. But if you register using our CBP home 0:00:46.720 --> 0:00:50.120 app and leave now, you could be allowed to return legally. 0:00:50.479 --> 0:00:55.240 Do what's right. Leave now. Under President Trump, America's laws, 0:00:55.400 --> 0:00:57.840 border and families will be protected. 0:00:57.920 --> 0:01:02.240 Sponsored by the United States Department of Homeland Security. My 0:01:02.360 --> 0:01:08.200 graduates from my school being false back and drop drop Mike, 0:01:08.319 --> 0:01:10.760 drop back, drop Drop. 0:01:20.520 --> 0:01:22.440 Earners, what's going on? You are now locked in the 0:01:22.480 --> 0:01:25.120 cliff notes, the number one place for investment strategies, tips 0:01:25.120 --> 0:01:27.680 and advice. Make sure you have your notepads ready, but 0:01:27.680 --> 0:01:29.880 more importantly, make sure you're ready to execute on the 0:01:29.880 --> 0:01:32.880 information to hear a more extended conversation. Make sure to 0:01:32.959 --> 0:01:36.200 check out our live YouTube show market Mondays every Monday 0:01:36.240 --> 0:01:39.600 eight pm Easter Standard time seven pm Central, and check 0:01:39.600 --> 0:01:43.200 out the Market Monday's podcast on iHeart, Spotify, Apple, or 0:01:43.200 --> 0:01:44.600 wherever you download your podcast. 0:01:44.640 --> 0:01:47.920 Now, all right, guys, welcome back. Before we start, we 0:01:47.960 --> 0:01:51.720 gotta let you know. You know, we got a lot, 0:01:51.760 --> 0:01:55.080 a lot of requests extend the sale for Eyle University. 0:01:55.160 --> 0:01:55.560 We heard you. 0:01:55.720 --> 0:01:57.760 It was supposed to get shut down on January one, 0:01:58.320 --> 0:02:01.320 but as you know any university, or as you might 0:02:01.400 --> 0:02:05.360 not know, it's actually ending as its current form and 0:02:05.760 --> 0:02:08.359 graduate school will begin. So we was planning on launching 0:02:08.400 --> 0:02:12.000 and graduate school January first, ran to some technical difficulties, 0:02:12.040 --> 0:02:13.840 had to make sure everything was right with the website 0:02:13.880 --> 0:02:16.160 and all that, so we pushed it back a week. 0:02:16.440 --> 0:02:21.680 The price made double, may tripping, may quadruple. We definite know, 0:02:21.880 --> 0:02:24.919 but it's going to be completely revamped. It's gonna be 0:02:24.960 --> 0:02:29.040 a different situation. But Eyl University includes over one hundred 0:02:29.080 --> 0:02:32.840 past webinars weekly webinars, access to our movie club, access 0:02:32.880 --> 0:02:35.480 to our book club, access to our Facebook group, bi 0:02:35.520 --> 0:02:38.280 weekly real estate calls with MG the Mortgage Guy, and 0:02:38.320 --> 0:02:41.920 once a month financial planning calls with me. All of 0:02:41.960 --> 0:02:44.760 that is included in the EYO University membership. So if 0:02:44.760 --> 0:02:47.480 you're interested, you can go to eyouniversity dot com right 0:02:47.520 --> 0:02:53.000 now and enter promo code eyl at checkout for forty 0:02:53.080 --> 0:02:57.160 percent off. Yeah. So four one K, right, this is 0:02:57.639 --> 0:03:00.160 the beginning of the year. The four one K is 0:03:00.520 --> 0:03:02.720 a lot of people's first way to start investing in 0:03:02.760 --> 0:03:07.200 the stock market. Right, most people actually the majority of 0:03:07.200 --> 0:03:10.560 their stock investment, or if they only they only have 0:03:10.760 --> 0:03:13.400 one stock investment, and that is the four one K. Right. 0:03:13.520 --> 0:03:16.720 A lot of people don't have outside stock investments outside 0:03:16.720 --> 0:03:19.960 of a retirement plan. So what is your suggestion for people, 0:03:20.000 --> 0:03:22.760 young people or old people whatever that you know might 0:03:22.840 --> 0:03:24.600 have just signed up for the four one K or 0:03:24.639 --> 0:03:27.760 are in a four one K. What's your thoughts on 0:03:27.800 --> 0:03:29.320 allocation and things of that nature. 0:03:30.160 --> 0:03:32.960 No, I think that that's a really good question. I 0:03:33.040 --> 0:03:35.680 did want to address what you all said about the 0:03:35.720 --> 0:03:38.480 tax deductions before we move forward, because I think that 0:03:38.480 --> 0:03:41.640 that's important and significant. When you live your life like 0:03:41.640 --> 0:03:46.080 a business. The expenses that you incur as an individual, 0:03:46.360 --> 0:03:48.440 you can, like you said, right off, as a business. 0:03:48.600 --> 0:03:52.440 So like the Internet that you're using on a regular basis, 0:03:52.440 --> 0:03:54.680 you already know you was going to be scrolling through Instagram, 0:03:54.760 --> 0:03:58.720 following uy L following in, following a shot, following Troy following, 0:03:58.720 --> 0:04:01.320 like y'all said, all right, but you also use your 0:04:01.360 --> 0:04:04.440 Internet to run your business. Your cell phone, you gonna 0:04:04.440 --> 0:04:06.520 call your girlfriend, You gonna gossip about that guy you 0:04:06.520 --> 0:04:08.200 swipe right on and he showed up at the day 0:04:08.240 --> 0:04:10.840 a whole catfish. But guess what else? You're gonna use 0:04:10.840 --> 0:04:14.760 your cell phone to call? Make business calls in order 0:04:14.800 --> 0:04:17.400 to generate business. Like when I started looking at the 0:04:17.480 --> 0:04:20.120 number of tax deductions that are available for your business, 0:04:20.120 --> 0:04:24.560 those number over four hundred deductions. If you're going on 0:04:24.920 --> 0:04:28.880 vacation but you're doing business for a certain percentage of time, 0:04:28.960 --> 0:04:31.320 that's no longer a business. I mean, that's no longer 0:04:31.360 --> 0:04:34.720 a vacation. That's now business travel. So when I started 0:04:34.760 --> 0:04:37.680 to reorient my mind into thinking about what are the 0:04:37.720 --> 0:04:40.400 things that I'm gonna do anyway, you know, just as 0:04:40.400 --> 0:04:43.200 an individual, how can I reclassify that as my business, 0:04:43.240 --> 0:04:45.479 I was able to see how I can reduce the 0:04:45.520 --> 0:04:48.560 taxable income because you all talked about taxes being expensive. 0:04:48.720 --> 0:04:51.240 Taxes are expensive the more income that you earn, because 0:04:51.240 --> 0:04:53.839 the percentage that they charge in taxes increases along with 0:04:53.880 --> 0:04:57.520 your income. With deductions, you're able to reduce that tax liability, 0:04:57.520 --> 0:05:00.560 and that's what deductions really afford to you. So that 0:05:00.760 --> 0:05:02.800 was I really liked how you all talked about that. 0:05:03.520 --> 0:05:06.560 In regard to the four O one K four O 0:05:06.680 --> 0:05:10.640 three B if you're working with a nonprofit organization four 0:05:10.680 --> 0:05:13.880 one K four three B TSP. If you're self employed, 0:05:13.880 --> 0:05:15.640 it is the IRIS the traditional ROTH, and we can 0:05:15.720 --> 0:05:18.000 talk about that as well. The first thing that you 0:05:18.040 --> 0:05:20.440 want to do is you want to ask your employer, 0:05:20.520 --> 0:05:22.440 because the four to oh one K is an employer 0:05:22.520 --> 0:05:28.239 sponsor program, if they can match your contribution and how 0:05:28.480 --> 0:05:32.640 much they match per dollar. So one of my employers 0:05:32.880 --> 0:05:36.240 match up to six percent of the salary that I 0:05:36.279 --> 0:05:39.200 was earning, so every single year, just like you said, Richard, 0:05:39.200 --> 0:05:42.520 they're going to ask for those individuals who want to 0:05:42.560 --> 0:05:44.360 contribute to the four oh one K, they're going to 0:05:44.480 --> 0:05:48.120 ask how much you want to contribute and how frequently, 0:05:48.440 --> 0:05:50.080 So you want to make sure that you ask those 0:05:50.160 --> 0:05:54.720 critical questions. The second thing is the biggest mistake that 0:05:54.800 --> 0:05:58.000 I made, is I did listen to my mama because 0:05:58.000 --> 0:06:00.720 she told me listen at twenty years oh, you were 0:06:00.760 --> 0:06:02.919 going to be invested in your four one K, and 0:06:02.960 --> 0:06:04.479 I will tell her at twenty years old, I'm not 0:06:04.520 --> 0:06:07.400 thinking about retirement. I'm not thinking about retirement. But we 0:06:07.480 --> 0:06:10.640 know the benefits of compound interest. The earlier you get started, 0:06:10.640 --> 0:06:12.240 the more your money can go to work with you 0:06:12.360 --> 0:06:14.599 or work for you over the years. So my mom 0:06:14.640 --> 0:06:16.800 started investing in retirement at thirty one. She thought if 0:06:16.839 --> 0:06:18.839 I could start eleven years ahead of her, then perhaps 0:06:18.920 --> 0:06:22.760 I could retire early. But for four one ks, you 0:06:22.800 --> 0:06:26.800 want to look inside whatever your employer has set you 0:06:26.920 --> 0:06:29.599 up with. Initially, for me, one of the biggest mistakes 0:06:29.640 --> 0:06:31.520 I made is I looked inside of my four one 0:06:31.600 --> 0:06:34.680 K late and I saw that nearly one hundred percent 0:06:34.680 --> 0:06:37.640 of my money was invested in money markets. So I 0:06:37.640 --> 0:06:40.680 think I heard maybe Ian talking about it earlier. I 0:06:40.760 --> 0:06:42.720 came in maybe about ten minutes towards the end of 0:06:42.760 --> 0:06:46.400 the conversations. But money markets are not going to return 0:06:46.600 --> 0:06:49.680 as much as equities, So like my money is returning 0:06:50.000 --> 0:06:52.400 one or two percent a year. It took me like 0:06:52.440 --> 0:06:54.440 two years to check it. One or two percent a year. 0:06:54.520 --> 0:06:57.640 That's equivalent to your money be invested in a savings account. 0:06:58.080 --> 0:06:59.640 Think about a four to one K. If you were 0:06:59.680 --> 0:07:02.480 active managing your funds, or you're critically thinking about what 0:07:02.600 --> 0:07:05.080 mutual funds you want to select, then you should be 0:07:05.120 --> 0:07:08.800 returning at least, in my opinion, at least that what 0:07:09.040 --> 0:07:11.440 the S and P five hundred is returning. So one 0:07:11.480 --> 0:07:13.720 to two percent was too low for me. So I 0:07:13.760 --> 0:07:15.840 had to go inside of my four o one k, 0:07:16.400 --> 0:07:19.440 look at the mutual funds that my employer has selected 0:07:19.480 --> 0:07:22.000 for me, and then get smart, just like you all 0:07:22.040 --> 0:07:24.800 said informations on the other side of your fingertips, get 0:07:24.840 --> 0:07:27.520 smart about what mutual funds I thought we could perform 0:07:27.600 --> 0:07:31.800 better for me versus what my employer selected. What are 0:07:31.800 --> 0:07:34.040 some of the things that I look for. The first 0:07:34.040 --> 0:07:36.880 thing is rule of thumb. You take one hundred and ten, 0:07:37.960 --> 0:07:41.120 you subtracted by however old you are right now, and 0:07:41.240 --> 0:07:45.640 whatever that resulting number is is the percentage of equities 0:07:45.720 --> 0:07:47.720 in which your mutual funds should be invested. 0:07:48.080 --> 0:07:49.800 So it said it one more time because I know 0:07:49.800 --> 0:07:51.400 people missed it, but it's formula. 0:07:51.880 --> 0:07:55.920 Yes, So you take one D and cent, you subtract 0:07:55.960 --> 0:07:59.640 your age, and whatever that resulting number is is the 0:07:59.720 --> 0:08:03.680 percentage of equities in which you should be invested. Equities 0:08:03.760 --> 0:08:06.800 is synonymous to stocks. You can have US equities, which 0:08:06.840 --> 0:08:09.640 is US companies. You can have non US equities, which 0:08:09.720 --> 0:08:12.440 means that's foreign investments, that's foreign businesses that are being 0:08:12.480 --> 0:08:15.560 traded on their stock markets. So whatever that number is, 0:08:15.960 --> 0:08:17.760 equity should be represented there. 0:08:18.080 --> 0:08:19.840 Ho hold, I just want to just because that was 0:08:19.880 --> 0:08:22.600 that was actually a very very good, useful formula. So 0:08:22.680 --> 0:08:26.120 if you're thirty years old, that's roughly eighty percent. Eighty 0:08:26.120 --> 0:08:29.480 percent of your money should be in stocks. Yep, that's 0:08:29.920 --> 0:08:31.400 extremely I agree. 0:08:31.440 --> 0:08:35.760 You guys are sleeping on it. Write that down, crit 0:08:35.840 --> 0:08:38.120 it down, and they can play in three weeks. Like 0:08:38.360 --> 0:08:40.720 what was the formula? Write it down? Now, write it down, 0:08:41.000 --> 0:08:44.440 Come on down, we should have one. Come on, let's go, 0:08:44.760 --> 0:08:46.520 and you should be at money markets until you're like 0:08:46.520 --> 0:08:49.640 seventy or eighty. I can't believe they. So that is 0:08:49.679 --> 0:08:51.480 the thing about it is listen, y'all give away a 0:08:51.520 --> 0:08:52.960 lot of free games, so you want to look at 0:08:53.000 --> 0:08:55.440 the percentage of equities. You want to get familiar with 0:08:55.520 --> 0:08:58.120 the different asset classes that are available to you. So 0:08:58.160 --> 0:09:02.720 I heard Ian talking about bonds. You can do real estate, 0:09:02.840 --> 0:09:04.760 you can do a mixed fund. So like, you want 0:09:04.800 --> 0:09:09.000 to take a look at what's inside of that fund. Next, 0:09:09.040 --> 0:09:11.680 you want to take a look at your mutual fund. 0:09:12.559 --> 0:09:17.240 What is the expense ratio? Because over time, the higher 0:09:17.280 --> 0:09:21.040 the expense ratio is, the more expensive it is to 0:09:21.160 --> 0:09:25.240 keep that particular mutual fund. I recommend that the expense 0:09:25.360 --> 0:09:29.640 ratio be one percent or fewer. Okay. Expense ratio is 0:09:29.640 --> 0:09:34.079 what fund managers charge you to pay them to actively 0:09:34.160 --> 0:09:38.240 manage the investments within your mutual fund portfolio. Okay, so 0:09:38.360 --> 0:09:41.280 that's one percent. You take that one percent and you 0:09:41.400 --> 0:09:43.800 multiply it by the money that you have invested in 0:09:43.800 --> 0:09:48.360 that account. It's important that you understand what type of 0:09:48.400 --> 0:09:50.720 equities are in there. So you may look at like 0:09:50.760 --> 0:09:52.920 what is the type of fund and may say things 0:09:52.960 --> 0:09:57.120 like large cap, mid cap, small cap. I believe Ian 0:09:57.240 --> 0:10:00.160 was talking about this earlier too, so large cap. Those 0:10:00.160 --> 0:10:03.800 are the large companies that you definitely recognize their names. 0:10:03.800 --> 0:10:05.240 That's the Amazon's. 0:10:06.200 --> 0:10:08.440 This episode is brought to you by P and C Bank. 0:10:08.840 --> 0:10:11.600 A lot of people think podcasts about work are boring, 0:10:11.800 --> 0:10:15.640 and sure, they definitely can be, but understanding a professionals 0:10:15.720 --> 0:10:19.000 routine shows us how they achieve their success little by little, 0:10:19.360 --> 0:10:23.000 day after day. It's like banking with P and C Bank. 0:10:23.480 --> 0:10:26.280 It might seem boring to save, plan and make calculated 0:10:26.320 --> 0:10:29.400 decisions with your bank, but keeping your money boring is 0:10:29.440 --> 0:10:32.760 what helps you live or more happily fulfilled life. P 0:10:32.880 --> 0:10:37.720 and C Bank Brilliantly Boring since eighteen sixty five. 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But then during the pandemic, 0:12:59.679 --> 0:13:02.480 some of the high performers have been the MidCap companies. 0:13:02.600 --> 0:13:06.679 So one particular MidCap mutual fund that I owned, two 0:13:06.800 --> 0:13:10.240 companies that were on there that were turned in triple digits. 0:13:11.440 --> 0:13:16.600 Tesla was in there, Teledoc was in there. Those were 0:13:16.600 --> 0:13:20.280 two companies that you absolutely know their name, and they 0:13:20.360 --> 0:13:24.120 returned it significantly. Why because, of course, we had a 0:13:24.160 --> 0:13:26.480 black swan event. No one could have predicted that we 0:13:26.520 --> 0:13:29.520 would be in the middle of a health pandemic, right, 0:13:29.640 --> 0:13:32.480 a health pandemic that nobody could have anticipated. And those 0:13:32.520 --> 0:13:35.280 companies that were able to serve our needs while we 0:13:35.440 --> 0:13:37.360 stayed at home, which is why they call it stay 0:13:37.400 --> 0:13:42.240 at home stocks, were able to experience tremendous growth. Okay, 0:13:42.360 --> 0:13:45.920 so MidCap MidCap, and then you have small cap companies 0:13:45.960 --> 0:13:48.600 and so those are small capitalized. That's what that CAP 0:13:48.640 --> 0:13:51.440 stands capitalized companies. Okay, so you want to take a 0:13:51.480 --> 0:13:53.800 look at that. Not everything that I take a look at. 0:13:53.840 --> 0:13:57.880 When I'm looking at mutual funds, I'm looking at the sectors. 0:13:58.400 --> 0:14:00.920 So you know, there's eleven sectors in the stock market, Like, 0:14:00.960 --> 0:14:04.959 what are the top three to four sectors within that fund? Again, 0:14:05.040 --> 0:14:06.680 one of the things that I loved about with Ian 0:14:06.800 --> 0:14:09.800 said he said, hey, these were the top three performing 0:14:09.840 --> 0:14:17.400 sectors for twenty twenty. Technology? Was it communications? Consumer discretionary. 0:14:18.400 --> 0:14:21.000 Get comfortable in figuring out what exactly does that mean? 0:14:21.360 --> 0:14:23.400 And guess what Google is? Your friend on the other 0:14:23.560 --> 0:14:26.680 side of your fingertips again, is information. Don't swim in 0:14:26.680 --> 0:14:29.080 the ocean of knowledge and drowning ignorance. When we talk 0:14:29.120 --> 0:14:32.040 about technology, that's the Apple, that's a Microsoft, that's a Google. 0:14:32.160 --> 0:14:35.200 When we talk about consumer discretionary, that's home depot. Y'all 0:14:35.240 --> 0:14:38.440 was in y'all house, fixing your closets, painting your walls, 0:14:38.520 --> 0:14:41.200 making your house look pretty. That's McDonald's. Were not going 0:14:41.240 --> 0:14:43.200 to negotiate if you should be eating them chicken nuggets. 0:14:43.240 --> 0:14:44.960 But let me tell you, some people got tired of cooking. 0:14:45.000 --> 0:14:47.120 They went right on in not drive through. That's a 0:14:47.280 --> 0:14:54.480 consumer discretionary category. Communications. Everybody was watching Netflix, Disney plus 0:14:54.520 --> 0:14:57.680 the introduction of five g's, So that's Sprint. I ain't 0:14:57.680 --> 0:14:59.600 gonna talk about y'all Sprint, folks, but the call always 0:14:59.680 --> 0:15:08.760 drops somewhere. Communications sectors. Be smart about the sectors. What 0:15:09.080 --> 0:15:11.880 are the companies that you're patronizing that you're spending your 0:15:11.920 --> 0:15:15.480 hard earned dollars at during the pandemic after the pandemic, 0:15:15.720 --> 0:15:19.280 pre pandemic, Be smart about the sectors. What are the 0:15:19.320 --> 0:15:23.240 sectors that underperform? Energy? Why? That's oil, right, that's oil. 0:15:24.160 --> 0:15:27.960 You can't love Tesla and be pro energy too, I 0:15:27.960 --> 0:15:30.760 mean that's clean energy. You know something you're looking at energy? 0:15:30.840 --> 0:15:32.560 You know you're taking the planes have been grounded? What 0:15:32.600 --> 0:15:35.840 do they require fuel? Right? When we're talking about cars, 0:15:36.000 --> 0:15:38.160 some of you aren't commuting to your nine to five. 0:15:38.400 --> 0:15:40.920 You're nine to five. You're not driving from your house 0:15:40.920 --> 0:15:43.160 to your job. You walk in from your bedroom to 0:15:43.200 --> 0:15:45.680 your living room. Okay, so you're not putting as much 0:15:45.680 --> 0:15:50.600 fuel in your car. Energy sector underperform, right, So like 0:15:50.680 --> 0:15:52.360 that's raking low. So you want to take a look 0:15:52.360 --> 0:15:54.240 at those sectors and you want to see if that 0:15:54.280 --> 0:15:55.880 makes sense. What are some companies that are part of 0:15:55.880 --> 0:15:58.240 those sectors? And then I look at the top ten 0:15:58.320 --> 0:16:01.400 holdings within that mutual fund, because I think it's important 0:16:01.520 --> 0:16:04.120 you know one of those top ten holdings, how they performing. 0:16:04.160 --> 0:16:06.680 And then the last thing that I'll say is that, yes, 0:16:06.760 --> 0:16:09.240 I read the prospectives. That's important. You should always read 0:16:09.280 --> 0:16:11.600 the prospectus. Yes, for some of you all it's alone. 0:16:11.640 --> 0:16:13.360 But if you can sit and you can watch Netflix 0:16:13.400 --> 0:16:15.680 and Binge, watch it for three consecutive days and text 0:16:15.680 --> 0:16:18.480 your boot, you can read the prospectus. But I also 0:16:18.560 --> 0:16:22.680 look at the benchmark, because the benchmark is what the 0:16:22.720 --> 0:16:26.160 fund manager said that they were going to this particular benchmark. 0:16:26.400 --> 0:16:29.320 I'm going to perform at or better than this benchmark. 0:16:29.520 --> 0:16:33.000 What is a benchmark? The guys talked about it on EYL. 0:16:33.160 --> 0:16:35.880 That's why y'all in here, right. So like that might 0:16:35.880 --> 0:16:38.840 be the S and P five hundred, five hundred publicly 0:16:38.880 --> 0:16:41.600 traded companies. That might be the Russell two thousand, you know, 0:16:41.680 --> 0:16:43.280 is it a Wrestle two thousand growth? Is it a 0:16:43.320 --> 0:16:46.560 Wrestle two thousand value? It might be the Russell twenty 0:16:46.560 --> 0:16:49.840 five hundred, It might be the Russell one thousand. This benchmark. 0:16:50.120 --> 0:16:52.080 If you look at and this is a key that 0:16:52.120 --> 0:16:54.480 I do when I'm teaching my classes, I go to 0:16:54.560 --> 0:16:59.800 markets ft dot com. Or if you have a tarmac 0:17:00.080 --> 0:17:03.760 with Fidelity, or you know whatever, wherever your four oh 0:17:03.800 --> 0:17:06.320 one K exists, going there, maybe they have some resource tool. 0:17:06.320 --> 0:17:08.359 But I go to marketsft dot com, I type in 0:17:08.480 --> 0:17:11.840 the stock symbol and I click performance, And when you 0:17:11.840 --> 0:17:14.480 click performance, it will show what was the benchmark for 0:17:14.520 --> 0:17:18.679 that particular mutual fund and at what percentage did it 0:17:18.760 --> 0:17:22.680 return five years ago, three years ago, one year ago, 0:17:23.119 --> 0:17:27.560 six months ago, three months ago today, if the stock 0:17:27.640 --> 0:17:30.719 market was open that day, Okay, it might be fifteen percent, 0:17:30.800 --> 0:17:33.680 twenty percent. Right, Let's say five years ago was fifteen percent, 0:17:33.680 --> 0:17:36.640 three years ago was ten percent. Then you're gonna look 0:17:36.640 --> 0:17:40.199 at your mutual fund and you want to see how 0:17:40.280 --> 0:17:43.800 well those fund managers put the expense ratio. Did they 0:17:43.880 --> 0:17:46.560 charge you that one percent that point zero five percent 0:17:46.640 --> 0:17:50.679 to work? If their benchmark was fifteen percent. If Russell 0:17:50.720 --> 0:17:54.479 one thousand return fifteen percent and your mutual fund returned 0:17:54.520 --> 0:17:58.240 six percent, they didn't even meet their benchmark. That means 0:17:58.240 --> 0:18:00.439 they set a goal that they couldn't even meet. And 0:18:00.440 --> 0:18:02.640 if they couldn't meet their goal five years, three years, 0:18:02.640 --> 0:18:04.480 two years, one years, what makes you think that they're 0:18:04.480 --> 0:18:06.919 gonna meet the goal today? So when I look at 0:18:06.960 --> 0:18:09.000 the mutual fund, I always look at that benchmark, and 0:18:09.040 --> 0:18:11.199 I'm always looking at the mutual fund and seeing if 0:18:11.240 --> 0:18:14.480 that percentage is higher than the goal that the fund 0:18:14.640 --> 0:18:17.919 set for itself. And that's important to look at performance 0:18:18.000 --> 0:18:21.719 long term because, like Eyl said, twenty twenty was an 0:18:21.760 --> 0:18:24.800 amazing year for those people who got smart and got 0:18:24.840 --> 0:18:27.280 active in the market if you could afford to invest 0:18:27.359 --> 0:18:29.679 right those returns. Some of these mutual funds were returning 0:18:29.720 --> 0:18:33.439 twenty thirty forty fifty percent. We probably cannot anticipate that 0:18:33.440 --> 0:18:35.720 that's gonna happen in twenty twenty one with the introduction 0:18:35.800 --> 0:18:39.560 of the vaccine. But if you look five years, three years, 0:18:39.600 --> 0:18:42.640 two years ago pre pandemic, you can see how those 0:18:42.680 --> 0:18:46.119 fund managers were managing that account apps in COVID and 0:18:46.160 --> 0:18:50.840 that could be a future indicator for their performance moving forward. Well, 0:18:51.240 --> 0:18:53.639 what's now to cut you off? What's the mutual fund 0:18:53.720 --> 0:18:55.440 or top two that you like? Because I know they're 0:18:55.440 --> 0:18:58.919 gonna kill us if we don't ask. I like the 0:18:58.920 --> 0:19:02.719 Fidelity blue Chip Growth so I believe that that is 0:19:03.200 --> 0:19:05.199 write down the stick to stock TI for that. But 0:19:05.240 --> 0:19:09.040 that's Fidelity blue chip Growth. And then I also like 0:19:09.600 --> 0:19:12.760 B and Y melon small big cap, so that's d 0:19:13.000 --> 0:19:18.919 B max so d B m A x dB max. Okay, 0:19:19.000 --> 0:19:20.159 so those are the two that I have. 0:19:20.720 --> 0:19:24.200 The Fidelity I'm definitely familiar with the Fidelity mid cap 0:19:24.280 --> 0:19:27.240 growth one. That's that's a that's a very good one. 0:19:28.520 --> 0:19:31.320 That was a whole that I and that the information 0:19:31.680 --> 0:19:34.600 is not just for a four to one k's like, 0:19:35.040 --> 0:19:38.920 that's just broad range investment information. She just talked about 0:19:39.080 --> 0:19:43.760 make cap, large, cat, small, cab, pe ratio benchmarks, a 0:19:43.760 --> 0:19:45.320 lot of stuff that I don't think we even spoke 0:19:45.359 --> 0:19:48.920 about before. So yeah, man, that was that was great. 0:19:49.000 --> 0:19:51.119 I just I just want people to fully appreciate the 0:19:51.200 --> 0:19:53.880 level of education because that was a lot a lot 0:19:53.920 --> 0:19:55.879 of gyms. Sometimes that you give people so many gyms, 0:19:55.920 --> 0:19:59.320 it's just like they don't fully understand what's what's being 0:19:59.320 --> 0:20:01.320 given to them. Now was like a full blueprint of 0:20:01.400 --> 0:20:04.200 actually how to break down fun. 0:20:04.320 --> 0:20:07.000 Yeah, it's the crazy part is like to me, when 0:20:07.000 --> 0:20:08.520 I was listening to it, I'm like, Yo, this is crazy. 0:20:08.520 --> 0:20:11.280 This sounds pretty similar to how we will research our ETFs. 0:20:11.400 --> 0:20:15.119 Well, once you, like I said, learn about process, right, 0:20:15.240 --> 0:20:17.560 once you learn one, it's like learning the language. Like 0:20:17.560 --> 0:20:20.280 once you learn one thing, whether it's a mutual fund, 0:20:20.320 --> 0:20:23.200 whether it's an ETF, whether it's an individual stock, it's 0:20:23.200 --> 0:20:25.560 all it's all synonymous with each other. And that this 0:20:25.600 --> 0:20:27.200 is what helps you. Like once you start to learn 0:20:27.240 --> 0:20:30.800 about the investment language, they're all very similar. So you 0:20:30.840 --> 0:20:34.560 can use the same the same thing in individual stocks 0:20:34.560 --> 0:20:37.600 with your brokerage, investing for your kid, doing an IRA 0:20:38.200 --> 0:20:40.199 for one K. It's all very similar. 0:20:40.280 --> 0:20:42.200 But you know what the beautiful part is, and I 0:20:42.280 --> 0:20:44.400 give you a whole lot of credit. It's like, think 0:20:44.440 --> 0:20:47.040 about all of what she just told you, Like that's 0:20:47.040 --> 0:20:47.600 the homework. 0:20:47.960 --> 0:20:48.440 You know what I'm saying. 0:20:48.480 --> 0:20:50.919 People like, Yo, what y'all y'all saying, like, do your 0:20:50.920 --> 0:20:54.320 homeworker what she just gave you a whole lesson of 0:20:54.400 --> 0:20:56.480 how to do the homework when it comes to investing 0:20:56.520 --> 0:20:58.960 in mutual funds. And shout everybody. I see people putting 0:20:59.040 --> 0:21:01.560 up that we and to death about expense ratios in 0:21:01.600 --> 0:21:04.240 the book club. But Yo, you just laid it out. 0:21:04.440 --> 0:21:06.159 We got we got keys, we gotta get you the 0:21:06.200 --> 0:21:14.040 teacher class, key Lay Professor, Professor Key got you gotta get, 0:21:14.200 --> 0:21:14.880 you gotta get your. 0:21:14.760 --> 0:21:16.400 Teacher class and I would love to join. 0:21:16.480 --> 0:21:18.359