WEBVTT - BA Q&A: Take Care Of Your Older Self 0:00:06.040 --> 0:00:09.560 It's time for the b a q a A. The 0:00:09.600 --> 0:00:12.040 b a q a what you say, the big a 0:00:12.440 --> 0:00:15.520 q a man day, the b a q eight what today? 0:00:17.120 --> 0:00:20.120 It's the b a q a Brianna Bison question of answers. 0:00:20.280 --> 0:00:23.360 You have questions, We have answers that are to be 0:00:23.400 --> 0:00:24.200 taken with a. 0:00:24.440 --> 0:00:27.960 Grain of get yourself. She goes, right, we're. 0:00:27.760 --> 0:00:31.520 Not your financial advisor, we're not your attorney, we're not 0:00:31.800 --> 0:00:36.080 your well we are your financial besties. Let's get into it. 0:00:36.880 --> 0:00:39.280 But yeah, no, we really you know, basically sue your grandma, 0:00:39.360 --> 0:00:42.360 not us. So you know here what we have to say. 0:00:42.360 --> 0:00:44.280 But then leading to the professionals that you pay for 0:00:44.360 --> 0:00:47.680 this type of advice for. Okay, so let's get started, Manajoe, 0:00:47.720 --> 0:00:48.959 what's our first question? 0:00:49.720 --> 0:00:52.199 Our first question? Want to do the anonymous one first, some 0:00:52.320 --> 0:00:57.280 mysterious let's give her name? Yeah, let's give her. 0:00:57.360 --> 0:00:59.160 How about Gertrude. 0:01:00.280 --> 0:01:03.520 Of all the names? Okay, Gertrude, I don't even know 0:01:03.520 --> 0:01:04.800 how Trudy? How about Trudy? 0:01:04.959 --> 0:01:05.199 Yeah? 0:01:05.280 --> 0:01:08.959 True, Okay, there we go. All right, Trudy says, hey, hey, ladies, 0:01:08.959 --> 0:01:11.759 I love the podcast and love to remain anonymous. Okay, Truty, 0:01:11.800 --> 0:01:14.480 we got you. My question is how much money do 0:01:14.560 --> 0:01:17.559 you think is realistic for a twenty five year old 0:01:17.680 --> 0:01:21.200 single mom of one who makes around sixty thousand dollars 0:01:21.280 --> 0:01:25.600 a year to save. I've got about twenty three hundred 0:01:25.640 --> 0:01:29.240 dollars in bills and part of that is covered by 0:01:29.280 --> 0:01:32.800 the eleven thousand or sorry, eleven thousand, like deck, who's 0:01:32.840 --> 0:01:36.199 your baby dead? Anyway? Uh? The one thousand, one hundred 0:01:36.200 --> 0:01:39.280 and fifty dollars I get a month in child support, 0:01:39.720 --> 0:01:42.200 So twenty three hundred dollars in bills and like about 0:01:42.240 --> 0:01:44.760 half of that is covered by child support. Okay. I 0:01:44.840 --> 0:01:46.920 do plan to get a new job this year to 0:01:46.959 --> 0:01:50.160 hopefully boost my salary by a minimum of fifteen k 0:01:50.600 --> 0:01:53.240 after listening to the advice on you All's podcast. But 0:01:53.320 --> 0:01:55.920 I do really want to set a realistic savings goal, 0:01:56.080 --> 0:01:58.880 savings goal to set up for me and my kiddo. 0:01:59.360 --> 0:02:02.400 I haven't had any examples in my family if anyone 0:02:02.480 --> 0:02:06.200 ever said saving, let alone for retirement, future college, et cetera. 0:02:06.680 --> 0:02:08.480 And I want to do better because I know better, 0:02:08.680 --> 0:02:11.040 I just don't know where to start. Please help. I 0:02:11.080 --> 0:02:14.359 want something realistic and feasible because I do enjoy being 0:02:14.400 --> 0:02:17.200 able to spend on things me and my kid enjoy 0:02:18.360 --> 0:02:20.680 all right, Trudy should. 0:02:20.680 --> 0:02:23.360 Say you know, actually had a friend in high school. 0:02:23.400 --> 0:02:25.560 Her name was Trudy and it wasn't until like graduation 0:02:25.639 --> 0:02:28.359 when they said her name Gertrude. We were like, gtruth, 0:02:28.600 --> 0:02:31.000 we did, that was her name. Sorry to you, Trudy. 0:02:32.639 --> 0:02:34.680 I feel like gird truths are just born old. I'm like, 0:02:34.760 --> 0:02:36.560 are you just a grandmother? I mean, how do you 0:02:37.480 --> 0:02:39.160 how do you look at a little ladies said we 0:02:39.160 --> 0:02:40.720 were gonna name this birth baby? 0:02:40.800 --> 0:02:43.520 Got true? Every Gertrude listening right now, I. 0:02:43.639 --> 0:02:44.960 Know, Sorryruths. 0:02:45.080 --> 0:02:47.800 Well, the lady names are back in style though, Eleanor's 0:02:48.000 --> 0:02:50.480 and all that, you know. But Trudy girl, So I 0:02:50.520 --> 0:02:53.200 was just quickly doing a little mathematicals. I was just 0:02:53.240 --> 0:02:56.480 about to slay. Okay, So I just did like six 0:02:56.720 --> 0:02:59.400 sixty three thousand divided by twenty six to see what 0:02:59.440 --> 0:03:02.160 you're working with, like on a by bi weekly basis. 0:03:02.520 --> 0:03:06.800 So that's about twenty four hundred dollars that's gross twice 0:03:06.840 --> 0:03:10.760 a month, yeah, gross before taxes all that, so times 0:03:10.800 --> 0:03:13.520 two that would be so she's working with like forty 0:03:13.520 --> 0:03:19.160 eight hundred pre tax so let's call one thousand ish. Yeah, 0:03:19.160 --> 0:03:21.200 four thousand ish. I was trying to remember what the 0:03:21.240 --> 0:03:25.840 tax bracket was for six under whatever her income is. 0:03:26.400 --> 0:03:31.040 It can't be thirty DAGM no eleven. I'm curious, what 0:03:31.120 --> 0:03:36.880 is the tax bracket? Google answer me, show me the 0:03:37.000 --> 0:03:43.480 power um incomes. She should be like max twenty twenty 0:03:43.480 --> 0:03:48.520 two percent. Okay, so yeah, something like that, like about 0:03:48.560 --> 0:03:51.360 four thousand and her bills, so that leaves her with 0:03:51.440 --> 0:03:54.560 about so Trudy, this math is what you should be doing, 0:03:54.600 --> 0:03:56.680 Like what's your take home pay? Because you know what 0:03:56.680 --> 0:04:00.320 your taxes are. You subtracted your bills from that twenty 0:04:00.320 --> 0:04:03.720 three hundred dollars. We're gonna guesstimate your left with like 0:04:03.800 --> 0:04:08.160 between fifteen hundred to two thousand, and then that thank 0:04:08.240 --> 0:04:08.960 here is. 0:04:10.360 --> 0:04:14.800 Eight forty. But she does get eleven fifty in child support, 0:04:15.520 --> 0:04:19.640 and child support is not text. So if we add 0:04:19.800 --> 0:04:24.320 the four thousand plus eleven fifty, what is that fifty 0:04:24.400 --> 0:04:28.800 one to fifty fifty one fifty minus twenty three hundred 0:04:29.120 --> 0:04:31.040 minus eight forty Where are we at? 0:04:31.240 --> 0:04:32.680 Oh I thought you were doing that. You sound like 0:04:32.680 --> 0:04:39.240 you're shit minus minus eight forty minus twenty three hundred. 0:04:39.400 --> 0:04:42.080 Get right on that. Tivity twenty ten dollars. 0:04:42.320 --> 0:04:46.400 Okay, so that's a good amount of money left over. 0:04:46.480 --> 0:04:48.000 But I mean, I'm assuming those are just bills, you know. 0:04:48.200 --> 0:04:49.880 I'm sure you have like other things. You got groceries 0:04:49.960 --> 0:04:50.480 and things like that. 0:04:51.160 --> 0:04:52.480 Gas. 0:04:52.760 --> 0:04:55.560 So from that two thousand, what was it, two. 0:04:55.400 --> 0:04:58.360 Thousand, twenty ten dollars twenty. 0:04:58.279 --> 0:05:01.200 I wouldn't be mad at saving five hundred bucks a month. 0:05:01.800 --> 0:05:03.240 Well how do you start? Because she's like, where do 0:05:03.360 --> 0:05:06.000 I feel her? On? Like, where does she start? Would 0:05:06.040 --> 0:05:07.479 that be like cash in the bank? 0:05:07.800 --> 0:05:11.000 Or I would start with what I call the budget 0:05:11.000 --> 0:05:14.720 without budgeting, I would say, once I did the math mathematics, 0:05:14.760 --> 0:05:16.400 you know what I mean, and I got this number, 0:05:16.480 --> 0:05:20.640 I would say, I'm going to go to HR and 0:05:20.680 --> 0:05:22.680 then I'm gonna say, hey, HR, or you look real 0:05:22.720 --> 0:05:26.839 cute today. Could you, instead of dropping all of my 0:05:27.040 --> 0:05:30.120 take home pay into this checking account, could you split 0:05:30.160 --> 0:05:32.680 it before I get it and put some here and 0:05:32.720 --> 0:05:36.680 put five hundred dollars into this online only saves account, 0:05:36.760 --> 0:05:38.760 you know, the highest deal that you can find. You 0:05:38.760 --> 0:05:42.239 can go to like a website magnified money dot com 0:05:42.240 --> 0:05:45.919 to find like a savings account and then put that 0:05:46.040 --> 0:05:49.280 other five hundred dollars there. And because of the purpose. 0:05:49.320 --> 0:05:51.200 To me, there's a few purposes of saving. You save 0:05:51.279 --> 0:05:54.000 for security, so you want to get your you know, 0:05:54.040 --> 0:05:56.800 your emergency savings game up three to six months. You 0:05:56.839 --> 0:05:58.680 have a kid, so probably might am will probably be 0:05:58.680 --> 0:06:02.400 like six months. And then you save for big purchases 0:06:02.440 --> 0:06:03.680 so you know, you want to put a down payment 0:06:03.720 --> 0:06:05.680 on a car or a house or whatever. And then 0:06:05.720 --> 0:06:11.279 you save for pre investing for wealth, you know, so truy. First, 0:06:11.279 --> 0:06:14.280 I would ask you, are you setting aside for retirement 0:06:14.320 --> 0:06:17.960 through your job? You know, so if you have this 0:06:18.000 --> 0:06:20.440 excess money left over, if you're not setting aside or 0:06:20.440 --> 0:06:23.159 you're not setting aside you know, whatever the max is, 0:06:24.320 --> 0:06:26.120 whether it's through your job or maybe you have a 0:06:26.200 --> 0:06:29.320 raw fire ray, whatever your retirement account is, are you 0:06:29.440 --> 0:06:31.880 maxing it out if you have excess money left over, 0:06:32.120 --> 0:06:36.480 because I probably would work toward that as well as 0:06:36.520 --> 0:06:38.760 putting aside for savings. If you're like, yes, I'm I'm 0:06:38.800 --> 0:06:41.320 setting aside for retirement. Great, because you're twenty five, super 0:06:41.360 --> 0:06:45.880 younger and snatched. I'm sure right, so that's great. And 0:06:46.080 --> 0:06:48.599 then I would say, okay, I would look at my 0:06:48.640 --> 0:06:51.320 numbers and say I can comfortably say like I said, 0:06:51.480 --> 0:06:53.360 like I wouldn't be mad at five hundred dollars, so 0:06:53.400 --> 0:06:56.159 basically like a quarter of what's left over in the pot. 0:06:56.440 --> 0:06:58.400 But I wouldn't do the work myself. I would have 0:06:58.560 --> 0:07:01.000 hr if if they let you split before you get 0:07:01.400 --> 0:07:03.360 and many people do, even small like even my company. 0:07:03.400 --> 0:07:04.760 We're not a big old company, and we have the 0:07:04.760 --> 0:07:08.280 capability of doing that. So I put my money into 0:07:08.360 --> 0:07:11.840 my online owning savings account and then I would decide 0:07:11.840 --> 0:07:14.440 from there, like, Okay, after I get to the place 0:07:14.480 --> 0:07:16.200 where I have my three to six months, is there 0:07:16.240 --> 0:07:20.000 maybe you want to also simultaneously save firm to purchase something. 0:07:20.280 --> 0:07:22.600 But once I max out, like I'm max and I 0:07:22.600 --> 0:07:25.280 think Mandy has shared too that she's maxed out for 0:07:25.360 --> 0:07:28.320 her emergency savings, and then I would roll over. So 0:07:28.400 --> 0:07:31.240 any excess money that comes to my life now my 0:07:31.320 --> 0:07:33.640 emergency account is fully funded. I'm not trying to buy 0:07:33.640 --> 0:07:36.800 anything anything right now, So any money that would normally 0:07:36.800 --> 0:07:40.200 go to my savings for savings sake goes to now 0:07:40.360 --> 0:07:43.840 like my pre savings to invest. So I put it 0:07:43.880 --> 0:07:48.160 into a pot. My financial advisor, I'll message her and say, hey, Angelie, 0:07:48.200 --> 0:07:50.280 you know I've got some money into the end that 0:07:50.320 --> 0:07:52.240 savings account, you know, when you get a chance to 0:07:52.280 --> 0:07:54.360 keep pull it out and she will slowly start to 0:07:54.520 --> 0:07:57.280 integrate it into my other and my other into the 0:07:57.280 --> 0:07:59.520 market via my investments. So that's what it kind of 0:07:59.560 --> 0:08:02.000 looks like for me. And so you can start that, 0:08:02.080 --> 0:08:05.600 but start with, am I maxing out my retirement account? 0:08:06.560 --> 0:08:09.560 Do I have emergency savings? Is there something I want 0:08:09.560 --> 0:08:12.200 to purchase you know, you know, for the baby or 0:08:12.240 --> 0:08:16.120 whatever or something major? And then pre savings for pre 0:08:16.200 --> 0:08:17.360 investing savings. 0:08:17.760 --> 0:08:19.680 So that's that's what you say, max out your four 0:08:19.680 --> 0:08:22.040 to one K, Like for you feel like for so 0:08:22.080 --> 0:08:25.080 many people, especially when you're earning sixty three thousand, like 0:08:25.120 --> 0:08:27.200 that's a lot of money. Like what is it twenty 0:08:27.200 --> 0:08:29.360 two thousand to max out your four to one K? 0:08:29.880 --> 0:08:33.160 I feel like if that's overwhelming or sounds overwhelming, I 0:08:33.200 --> 0:08:36.400 mean that would be like a quarter of her pre 0:08:36.520 --> 0:08:39.839 tax pay I feel like setting the bar super low, 0:08:40.160 --> 0:08:43.480 Like could you like set up a direct like if 0:08:43.520 --> 0:08:45.800 you have your five hundred dollars earmarked for your cash 0:08:45.800 --> 0:08:48.559 savings while you're building that up, like just doing something 0:08:48.600 --> 0:08:52.880 simple like five percent of my salary, you know, automated 0:08:52.880 --> 0:08:56.920 through HR going toward retirement and not worry so much 0:08:56.960 --> 0:08:59.560 about like how what that dollar amount is because you 0:08:59.600 --> 0:09:02.520 are so young. I feel like when I was your. 0:09:02.400 --> 0:09:03.240 Age, oh. 0:09:05.200 --> 0:09:08.440 Oh my god, when I was your age, I started 0:09:08.440 --> 0:09:10.720 doing the same thing I was making about what you're making. 0:09:10.760 --> 0:09:13.679 Actually I was like making fifty five or sixty thousand dollars, 0:09:14.080 --> 0:09:17.120 and that's how I started. I was just like, you know, 0:09:17.200 --> 0:09:20.439 take this five percent. It was what I felt comfortable doing. 0:09:20.520 --> 0:09:22.480 And then see how that feels, you know, not having 0:09:22.480 --> 0:09:25.720 that five percent. I didn't. Did I get a match 0:09:25.760 --> 0:09:27.319 at that point? I think I might have gotten a 0:09:27.320 --> 0:09:30.120 little match which helped. But even if you do or don't, 0:09:30.240 --> 0:09:32.680 like I feel like starting with five percent, And for me, 0:09:32.880 --> 0:09:36.080 what was so powerful is that I never didn't save 0:09:36.120 --> 0:09:39.440 a retirement after that. Like as I went to different jobs, 0:09:39.480 --> 0:09:41.480 I just had it in my mind, I'm going to 0:09:41.559 --> 0:09:43.480 do five percent. And then when I got comfortable, I 0:09:43.520 --> 0:09:46.240 was like, okay, ten percent. And as you said, like 0:09:46.280 --> 0:09:48.280 your next job, you can have been making fifteen k 0:09:48.480 --> 0:09:51.839 more or you know, however much more, And as long 0:09:51.880 --> 0:09:54.480 as you're still saving that percentage, it's always going to 0:09:54.559 --> 0:09:56.719 go up, you know, because your income is going to 0:09:56.800 --> 0:09:59.960 go up. So it's a really good habit. I feel 0:10:00.080 --> 0:10:01.880 like to start early, but I can see why people 0:10:01.920 --> 0:10:05.640 get like overwhelmed and instead of like, they'll hear Max 0:10:05.679 --> 0:10:07.160 like your four one K and just be like, oh, 0:10:07.160 --> 0:10:08.720 there's no way, I'll just try to be fair. 0:10:08.800 --> 0:10:10.840 Sorry, I didn't mean like I meant when I was 0:10:10.880 --> 0:10:13.920 thinking of Max, I meant that to me, the ideal 0:10:14.040 --> 0:10:16.720 is to to get to ten percent, you know, not 0:10:16.960 --> 0:10:19.240 the twenty thine, you know what I mean? Or I 0:10:19.320 --> 0:10:21.560 was thinking that whatever her if she didn't have a 0:10:21.559 --> 0:10:23.320 four one because I don't. If I don't have a 0:10:23.320 --> 0:10:25.520 four to one K match, then I'm jumping straight to Wroth. 0:10:25.559 --> 0:10:27.640 And which is six is what is it sixty five? 0:10:27.679 --> 0:10:29.280 Is it six thousand or sixty five hundred? 0:10:29.320 --> 0:10:29.640 Right now? 0:10:30.000 --> 0:10:32.120 I think Wroth is around six thousand, you know. So 0:10:32.160 --> 0:10:33.880 that's what I was thinking of that. I wasn't thinking 0:10:33.920 --> 0:10:37.800 about like the the full full full. I was like, Okay, 0:10:37.840 --> 0:10:39.240 if you can get to ten percent, that's what I 0:10:39.240 --> 0:10:43.640 should have specified ten percent of your you know what 0:10:43.760 --> 0:10:46.520 you're making into your four one K if they have 0:10:46.600 --> 0:10:48.320 a match. I like to do this. I'm like, do 0:10:48.400 --> 0:10:50.360 I have a four on one K? Yes? Do they 0:10:50.360 --> 0:10:53.320 have a match? No? Let me max out my wrath. 0:10:53.559 --> 0:10:56.480 Do I have a four O one K? Yes? Do 0:10:56.520 --> 0:10:59.880 they max? Yeah? Do they match? Yes? Okay, let me 0:11:00.360 --> 0:11:02.480 put my money up to the match. Like work toward 0:11:02.679 --> 0:11:04.600 getting my money put up to the match and then 0:11:05.200 --> 0:11:09.360 going to a raw IRA because there are tax benefits 0:11:09.400 --> 0:11:12.280 for a regular you know, four to one K regular 0:11:12.320 --> 0:11:15.400 retirement plan, which means that it lowers your tax burden 0:11:15.440 --> 0:11:18.160 now and then later when you retire, you get taxed 0:11:18.200 --> 0:11:20.319 on you know, the money you pull out, but then 0:11:20.360 --> 0:11:23.160 the wrath allows you although it doesn't lower your tax 0:11:23.160 --> 0:11:25.520 burden now, you get to pull that money out and 0:11:25.559 --> 0:11:29.320 the growth tax free later, you know, because you pay 0:11:29.400 --> 0:11:32.080 taxes ahead of time, and so like, I like to 0:11:32.120 --> 0:11:34.360 have that mix. But if you're not getting a match, 0:11:34.360 --> 0:11:35.800 I like to jump to the raw first and then 0:11:35.840 --> 0:11:38.400 come on back to four one K and kind of 0:11:38.400 --> 0:11:42.200 finish business there. But yeah, so hopefully we did not 0:11:42.280 --> 0:11:43.120 totally confuse you. 0:11:45.200 --> 0:11:48.120 If we did, I'm like, key, takeaway five hundred dollars 0:11:48.480 --> 0:11:51.360 is a good goal, and then you can decide how 0:11:51.440 --> 0:11:53.360 much of that because she didn't really share if she 0:11:53.400 --> 0:11:56.120 had emergency savings, you know, if she does already, maybe 0:11:56.160 --> 0:11:58.679 you just start beefing up your retirement. But you know 0:11:58.720 --> 0:12:00.840 the point is just to start, and I feel like 0:12:00.880 --> 0:12:04.400 my second, my my whatever number we're on. Like, biggest 0:12:04.400 --> 0:12:07.440 tip when you're at that stage is your fragile like 0:12:07.480 --> 0:12:09.960 it's it's you want to protect what you're building, So 0:12:10.120 --> 0:12:12.600 debt is the enemy. As much as you can avoid 0:12:12.640 --> 0:12:15.680 credit card debt and keeping your budget nice so that 0:12:15.720 --> 0:12:17.680 you're not leaning on credit card debt, you'll your future 0:12:17.679 --> 0:12:20.320 self will thank you so much because then the money 0:12:20.320 --> 0:12:23.360 you're actually making will be yours. You know, it's true 0:12:23.360 --> 0:12:30.880 wealth building, all right, Trudy girl, Congratulations, wait, congratulations on 0:12:30.960 --> 0:12:34.240 what on having your answer your question? Answer with the 0:12:34.280 --> 0:12:37.680 lowercase A, with your sprinkle of salt from us, thank 0:12:37.679 --> 0:12:40.360 you so much for sending your question, and again shout 0:12:40.360 --> 0:12:43.360 out to single moms. I have a special place in 0:12:43.400 --> 0:12:43.680 my heart. 0:12:43.760 --> 0:12:45.560 Real one. 0:12:46.600 --> 0:12:48.520 Should we take a quick breaking break and come back 0:12:48.520 --> 0:12:50.680 with question number two and bonus question? 0:12:51.280 --> 0:12:52.160 We sure you should? 0:12:52.600 --> 0:12:54.160 All right, see y'all back here. 0:12:55.720 --> 0:13:00.800 And we're blacking back. So this is fuddy because this 0:13:00.960 --> 0:13:03.680 question is from oldish and unsure. I love this because 0:13:03.679 --> 0:13:05.960 first of all, oldest, you ain't oldest, only thirty nine 0:13:06.000 --> 0:13:08.840 years overall, don't make me feel old I have a question. 0:13:09.000 --> 0:13:13.079 My job not career she specified right, office of four 0:13:13.120 --> 0:13:16.199 one K, but no employer match. Were just looking about 0:13:16.200 --> 0:13:20.199 this and I have almost been there one year and 0:13:20.480 --> 0:13:23.200 was automatically set up to deduct three percent for my 0:13:23.240 --> 0:13:24.679 paycheck to go to the four one K. 0:13:24.840 --> 0:13:25.160 Okay. 0:13:25.600 --> 0:13:27.960 In my latest statement, glad you're looking at it, I 0:13:28.160 --> 0:13:32.439 noticed each quarter I'm being charged administrative fees. How many 0:13:32.480 --> 0:13:34.720 of y'all didn't realize that you get admin fees on 0:13:34.760 --> 0:13:39.280 your former K. Really, any retirement investment account is typically 0:13:39.320 --> 0:13:42.160 going to have some sort of fees yep hm, which 0:13:42.240 --> 0:13:44.960 total twenty five dollars to one hundred dollars a year. 0:13:45.240 --> 0:13:48.560 I'm thirty nine and have a wroth IRA and several 0:13:48.679 --> 0:13:51.760 mutual funds established for my retirement. Should I continue to 0:13:51.760 --> 0:13:54.760 invest the eighty three dollars per paycheck in my four 0:13:54.840 --> 0:13:57.720 one K or should I automate that amount and then 0:13:57.840 --> 0:14:01.720 some to a pre existing wrowth or mutual fund. Now, 0:14:02.960 --> 0:14:05.200 like I said prior, oldest and I'm sure we're not 0:14:05.200 --> 0:14:08.400 gonna call you older, We're gonna call you fabulous, but 0:14:08.520 --> 0:14:11.599 unsure because you're thirty nine, says forty two. Don't do this, 0:14:11.679 --> 0:14:17.640 sas don't do this, so unsure I really like employe man. 0:14:17.679 --> 0:14:19.880 I don't really like four one k's or making four 0:14:19.880 --> 0:14:22.600 one k's a priority if there's no match. So to 0:14:22.640 --> 0:14:25.400 answer your question, I honestly, especially now that these you know, 0:14:25.440 --> 0:14:28.920 you have these admin fees which is not gonna offset anything. 0:14:28.960 --> 0:14:31.560 So you know you're if you're putting in let's just 0:14:31.560 --> 0:14:35.480 say eighty three, you know what is that times Let's 0:14:35.520 --> 0:14:40.720 do the math we're mathing today. Eighty three pre times 0:14:40.760 --> 0:14:44.920 twelve is nine hundred ninety six. So basically one thousand 0:14:44.960 --> 0:14:48.440 dollars a year's what you're putting in, and of the thousand, 0:14:48.440 --> 0:14:52.760 they're taking ten percent in fees. So in order for 0:14:52.920 --> 0:14:56.000 you to come up, you would you would have to 0:14:56.080 --> 0:14:59.720 make more than ten percent on your investments. Right, because 0:14:59.720 --> 0:15:03.720 you're putting in one thousand, you're losing one hundred one 0:15:03.760 --> 0:15:06.560 hundred is ten percent of one thousand. That means your 0:15:06.720 --> 0:15:10.880 money would have to grow beyond that loss in administration fees, 0:15:11.120 --> 0:15:13.480 which the average the market has been averaging for the 0:15:13.560 --> 0:15:15.840 last hundred years eight to ten percent, So you're gonna 0:15:15.880 --> 0:15:19.120 end up like net even, right, So, like the money 0:15:19.120 --> 0:15:20.720 you put in is literally the money you'll get out 0:15:20.920 --> 0:15:22.840 it's looking like instead of a four one K plan, 0:15:22.840 --> 0:15:24.760 you looking like you put money to savings gown. Not 0:15:24.840 --> 0:15:27.320 even because savings accounts these days are at least giving 0:15:27.320 --> 0:15:33.400 you one percent, Si says, says, So I would if 0:15:33.440 --> 0:15:34.080 it's eighty. 0:15:33.880 --> 0:15:36.800 Three dollars actually read her fine print, a girl, I'm so, 0:15:36.920 --> 0:15:37.440 I'm proud of you. 0:15:37.480 --> 0:15:40.360 Honestly, I'm unsure ish we gonna call you smart, smart, 0:15:40.360 --> 0:15:43.200 but unsure that. Yes, I would redirect that eighty three 0:15:43.200 --> 0:15:45.760 someplace els and I would not consider that four one 0:15:45.800 --> 0:15:50.720 k again unless I had enough to offset the administrative fees. 0:15:51.080 --> 0:15:52.680 So if I was putting in safe, you were putting 0:15:52.720 --> 0:15:55.520 in four hundred bucks a month, you know, then the 0:15:55.560 --> 0:15:57.920 administrative fees would be a smaller percentage of what you 0:15:57.960 --> 0:15:59.200 put in, and it might make sense. 0:15:59.640 --> 0:16:02.960 So yeah, this is exactly why I don't even love 0:16:03.080 --> 0:16:06.760 like some investing apps because they have like a dollar 0:16:06.840 --> 0:16:09.640 amount fee that they charge, which if you're like, if 0:16:09.680 --> 0:16:12.440 you're investing your pocket change, that's a that's a big 0:16:12.600 --> 0:16:14.240 like Tiffany said, when you break it down by the 0:16:14.280 --> 0:16:16.520 fee divided by what you're actually investing, like, it's a 0:16:16.520 --> 0:16:19.960 big it's a big amount of fees. So I can't 0:16:20.000 --> 0:16:22.720 even think, but I would say, just like Tiffany said 0:16:22.760 --> 0:16:25.680 earlier to our previous homos, said caller to our previous 0:16:25.680 --> 0:16:28.640 listener about going to like Magnify money, but going and 0:16:29.040 --> 0:16:31.680 doing your googles and research to find a brokerage account 0:16:31.960 --> 0:16:34.400 and being realistic about how much you can contribute and 0:16:34.440 --> 0:16:37.200 then see what kind of fees they have, because the 0:16:37.240 --> 0:16:39.560 fee may be different depending on like how much you're 0:16:39.560 --> 0:16:42.240 going to contribute a month. Each month, it might be 0:16:42.240 --> 0:16:44.560 a little bit more if you're contributing less, and then 0:16:44.960 --> 0:16:49.400 less if you're contributing more. It's twisted and rude of 0:16:49.440 --> 0:16:50.840 them to do it that way, but that's how a 0:16:50.840 --> 0:16:54.720 lot of them. It's how a bees sometimes. But that's 0:16:54.760 --> 0:16:57.680 a really good question, thank you. What are we calling 0:16:57.680 --> 0:17:00.560 her smart? But then sure, yes, smart, but I'm sure 0:17:01.440 --> 0:17:02.360 savvy and unsure. 0:17:02.760 --> 0:17:04.959 We have a really really really quick question. Yes, what 0:17:05.000 --> 0:17:05.720 I do that one? 0:17:06.280 --> 0:17:08.440 We on the same page. Yeah, let's get yesen Yeah, 0:17:08.480 --> 0:17:11.879 I love this name from ig Yesenya says should I 0:17:11.960 --> 0:17:16.119 max out my wroth IRA before investing in a brokerage account? 0:17:16.200 --> 0:17:18.800 I'm not sure that I can do both right now. 0:17:19.440 --> 0:17:25.480 It's about that time hit him Ama was here with this. 0:17:27.320 --> 0:17:29.400 Yeah, I think that that's a good idea. I mean, 0:17:29.760 --> 0:17:32.239 there's some benefits to a roth iray that you're not 0:17:32.240 --> 0:17:36.080 going to get from traditional brokerage account. The main one is, 0:17:36.160 --> 0:17:38.840 so when you're contributing to a wrath, you're using dot 0:17:39.280 --> 0:17:41.200 You're using money that you've already paid taxes on and 0:17:41.240 --> 0:17:43.639 you're putting it into a wrath. The limit is like 0:17:43.880 --> 0:17:46.920 sixty five hundreds, depends on your age, it can be 0:17:46.920 --> 0:17:51.880 a little bit more, but with a wroth iray it's 0:17:51.880 --> 0:17:53.520 a little bit it's a lot more flexible than a 0:17:53.520 --> 0:17:56.160 brokerage account. So the money that you put in because 0:17:56.160 --> 0:17:57.840 you've already paid taxes on it. One of the big 0:17:57.840 --> 0:17:59.919 benefits is that if and I'm not saying you should, 0:18:00.320 --> 0:18:03.399 but if you needed to dip into your wroth ira 0:18:03.560 --> 0:18:06.000 in the future, you'd be able to take out your 0:18:06.000 --> 0:18:09.280 contribution without getting hit with like tax penalties and fees. 0:18:09.800 --> 0:18:13.040 So that's one benefit that it has over a brokerage account. 0:18:13.080 --> 0:18:15.960 And you know, the cap on a wroth ira being 0:18:16.000 --> 0:18:18.400 like what it is now sixty five hundred to seven thousand, 0:18:19.320 --> 0:18:21.159 you know, obviously not knowing how much you have to 0:18:21.160 --> 0:18:24.880 put aside, but if you're able to yeah, hit that cap, 0:18:24.920 --> 0:18:26.600 and then you can at least feel good like, Okay, 0:18:26.840 --> 0:18:29.520 I've ticked this box, and you can take your whatever 0:18:29.560 --> 0:18:32.760 proceeds you have left over and shift that into a 0:18:32.800 --> 0:18:35.760 brokerage account. At that point, I think, like any other 0:18:35.800 --> 0:18:36.680 benefits i've. 0:18:37.160 --> 0:18:38.800 Yeah, Well, here's the thing I always say, like to me, 0:18:38.880 --> 0:18:42.600 there's two, Like, there's two purposes of investing, investing for 0:18:42.840 --> 0:18:46.520 retirement and investing for wealth. And I think that you 0:18:46.520 --> 0:18:49.960 should prioritize always investing for retirement first because one day 0:18:49.960 --> 0:18:51.920 your eighty year ol sself is gonna be like, oh wow, 0:18:52.240 --> 0:18:55.680 so because of you, I'm eating you know, I'm fighting 0:18:55.680 --> 0:18:57.800 these these these birds at the park for these for 0:18:57.880 --> 0:19:01.320 these breadcrumbs. You know what I mean. Like, we don't 0:19:01.320 --> 0:19:02.960 want to put our older self in a position to 0:19:03.040 --> 0:19:05.480 have to work so hard because our younger self was like, 0:19:05.520 --> 0:19:08.440 oh yikes, my bad. So because it's your younger self's 0:19:08.480 --> 0:19:11.040 job to look after your older self. So you know, 0:19:11.040 --> 0:19:13.960 I want you to prioritize investing for retirement first. Typically 0:19:14.000 --> 0:19:16.400 when people put money in a brokerage account, they're investing 0:19:16.440 --> 0:19:18.439 for wealth, which is what we want you to get to. 0:19:18.920 --> 0:19:22.040 But that's after you've done the foundational work of investing 0:19:22.080 --> 0:19:26.280 for retirement, and roth iray is retirement investing. That's the 0:19:26.320 --> 0:19:29.160 purpose of it. And to Mandy's point, you put money 0:19:29.160 --> 0:19:31.840 in after tax and you get to withdraw it later, 0:19:32.680 --> 0:19:36.000 you know, tax free, because one you've gotten tax on 0:19:36.040 --> 0:19:38.520 what you contribute already, but also the growth you get 0:19:38.560 --> 0:19:41.439 to pull out tax free as well. So there's a 0:19:41.480 --> 0:19:44.719 huge benefit to a WROTH. And there's an income max 0:19:45.200 --> 0:19:46.639 so I think last time I checked it was like 0:19:46.680 --> 0:19:48.919