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Do you want to invest without losing money or paying taxes? · Rock My Finances

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Unless specifically indicated otherwise. The content expressed or my views only, and not
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necessarily those of Lifecro Asset Management LLC. The content presented is in no way
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an investment advice, solicination, or an offer to sell securities or investment advisory
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services. The material is provided for general information and educational purposes based upon publicly
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available information from sources believe to be reliable. I cannot assure the accuracy or
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completeness of these materials. As such, the information these materials may change at
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any time without notice. Reference to these discussions about eye wells and annuities are
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fixed insurance products. Investments on fixed insurance products are different from investments of the
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stock market. Any guarantees provided by a fixed insurance product cannot be assumed to
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be guaranteed for any other investment. Welcome to the Rock, my Finances show
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on k for HD radio and Talk for TV, where we put the fund
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in finance joint Powerhouse Jaffer Jose CDFA CMC and Private Wealth Advisor as she collaborates
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with you to create clarity, control and confidence with your money, your way.
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It's not about the zeros, So what is it all about? Let's
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find out. Now, here's your host and weekly friend, Jennifer Josh.
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Hey, I am so excited about today. I am here at Miss Juliet
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Cardona's office. I'll love her. She's my partner in crime. We do
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so much stuff together and she's in the Bay Area. So I just drove
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up yesterday from Beverly Hills. That's going to be an amazing day. We
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are going to share something with you that is absolutely life changing. And I
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promise you. I know everybody says all the time, but I swear you're
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going to want to stay till the end. You're going to like, like,
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share, download, share it with your people. This is very important
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information, even if you've already heard it before, which I doubt you have,
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but if you have, you're gonna want to save it because we do
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a little spin on it as well. So this is obviously called rock my
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Finances, right, and so it's called rock my Finances. We care about
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your money, we care about your relationship with money, we care about your
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mindset with money, and we want to create our wealth. We want to
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create we want to keep it. We don't want to lose it in the
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market, and we don't want to give it to Uncle Sam, and we
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also want to spend it and have a really good time. Like I just
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bought these new lashes, right. I don't know if you guys are all
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into lashes, but I'm into lashes and I love them. I know they're
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a little crazy, but they're good for the video. So money bought that.
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How much do I love money? So? Yes? Can money make
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me absolutely happy? In my belief This whole podcast is my beliefs. Anything
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over seventy five thousand dollars, yes, it can make you happy. Up
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into seventy five thousand dollars, it's a necessity, like you need to have
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it for food, shelter, medical, all that. So depending on where
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you're at, that's where more joy comes from with more money. I hope
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that makes sense. That's my two cents. So here, I am going
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to introduce miss Juliette Cardonna. Come on, I'm beautiful. I love being
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in person with you. This is so fun, This is so fun.
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This is really fun. And so Juliet and I have been working together for
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how many years? Eighteen or nine? Oh my gosh, nine, I'm
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old as hell and she shot you're gorgeous, and Vibert is always, and
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she's young and keeps me young and I just love our relationships. So it's
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really fun. So we are going to share with you something today that we
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really try to implement into financial planning. We're both financial advisors, financial planners,
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wealth advisors, whatever you want to call it, and so we want
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to make sure that our clients have a comprehensive plan. We want to make
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sure that they have diversified buckets of money everywhere. My favorite term, all
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right, love love buckets. We want everybody to have lots of buckets.
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If you're on video, you're wondering, I have my cute shirt. She
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believes she could, so she did. I was reading, so she did,
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so she did. I love my little T shirt and I love it.
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And sometimes that's all it takes. Refrigerator, she just got me ice
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um and we can hear them begin in the background. This is what happens
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when we're all alive, right, And so I love quotes and mantras and
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sayings like this. I like have a sign as well, and that helps
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us remember we're kind of bad ass, y'all. Like, well, sometimes
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we forget sometimes all the time, most of the time daily, right,
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that's true. Something can whack us off our path and interrupt our jujuju as
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you always say, Oh yeah, my juju, don'll mess with that.
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Don't mess with my juju exactly. So this is going to change that for
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you because this is going to be the foundation of your financial willth invalidation people,
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right, are we getting excited yet? I hope so they should be,
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I know, right, So you have to stay very sexy though when
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we're talking about the foundation of something. But I promise that again, it's
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just like doing the work ahead of time, like visualizing the plan, putting
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the putting the plan in place. It's all of that leading up to whatever
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bucket you're trying to get going, right, whether it's what we're going to
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talk about today or some of the alternatives we're going to review to today today.
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The point is it's it's bigger than just the bucket, right, It's
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the why. And I think that's why today it's a great place for us
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to jump off and start because we're talking about foundation. But it's also more
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than that. It can be sexy, and I think that's where really what
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we're going to focus on towards the end, because there isn't a perfect investment.
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You taught me that eight years ago, and I used to fight you
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on it. In a specific instance. This is the perfect investment, and
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it's great to learn. As you go, right, you find out that
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it's not a one size fits all answer, whether it's you know, a
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tax free bucket like we're talking about today or a future taxable bucket. Right,
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they have pros and cons. So I'm excited for us to dig deep.
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I'm a play devil's advocate with you. We need to talk about that
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before, so as you do, maybe some controversy. I like it just
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a little right, and I think it'll be a really cool discussion for your
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listeners to really get an idea of what you do to help people, because
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we don't always talk about sound nation part. That's very true. So can
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we call it financial four play? Oh that's sexy. You don't have to
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have it, but when you do, it's a hell of a lot more
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fun and it'll lasts longer. Just saying doesn't affect the fwort. Effort is
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my favorite word. Y'all know, we haven't even said it yet. No,
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we haven't effort feelings, but there's other efforts as well. Just saying
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okay, so we don't want to freak out one out there. It's so
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awesome. So what we are talking about, I'm gonna I'm gonna play this
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little exercise with you. Okay, you ready. I have this bucket,
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and you can invest into my bucket. Okay. You don't have to pay
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any taxes on this money, so you're gonna give me money and not pay
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any taxes, so it's pre tax dollars. It's gonna go into this bucket.
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Okay. This bucket is going to be for your retirement. So you
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cannot touch this bucket without a ten percent penalty plus a state penalty, which
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California is two percent. That's twelve percent penalty until you're fifty nine and a
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half. So you have to put money in here every month from your paycheck
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all the time, and you can't touch it. Okay, that's great.
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It's for your retirement. Now you don't have to pay any taxes on it.
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It's gonna grow what's called tax deferred, so no taxes during the growth
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period. I am also going to give you this bucket back when you're ready,
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say like sixty sixty five, but I don't know how much it's gonna
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be and before I give it to you, I'm going to take out a
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chunk. Could be twenty percent, could be thirty, could be forty,
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could be fifty. Yeah, there's penalties if I want it sooner. Yes,
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And if I don't take it sooner, Jennifer, I still have to
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pay you money. Oh yeah, even if you've had it for thirty years.
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Oh yeah. And I'm not going to tell you how much it is
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until that time. Oh. And it's gonna grow because it's going to be
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invested with the stock market and stuff. Let it could go down. In
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fact, with history, the stock market has always gone down, it's always
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come up. I love investments, love this stockument. Got to say that,
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but this investment, you have no idea if you're gonna want the money
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when the market's down, or if you're gonna want the money when the market's
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up. We have no idea. And I don't know how much I'm gonna
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keep of it, and I'm not sure what it's going to be. I
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don't know anything. Are you excited about this bucket? I'm not gonna lie
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to you know. No, doesn't sound very sexy. Yeah, doesn't get
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me goaling doesn't get my feels excited. If anything, I feel like it
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feels like there's a lot of red tape, maybe something anxiety because I felt
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like I had to memorize what you said about when I might want to touch
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it. And I also don't know what's around the corner, right, I
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don't know what you're gonna be doing. A fifteen out and a half,
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not really, okay, considering I'm dirty. Yeah, right, So now
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let me give you another bucket. Choice, like you said you love choices.
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Right, let's see it. Here's another bucket. Okay, you have
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to pay taxes on it now, so whatever your tax bracket is, now,
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you know what it is. Yep, you're gonna pay taxes on it.
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It's gonna go into a savings account, just like all your other money
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does. Right. Then you're gonna give it to me for this bucket.
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This bucket is also going to grow tax deferred, so no taxes while it's
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growing, same way. Okay, So I paid it and then it's left
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alone for a while. Correct, Okay, I'm with you. It's also
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going to give returns like the stock market, but you're not in the stock
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market, so you cannot lose your money. Well that sounds too good to
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be true. O keep going. And if five years, ten years,
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you want to take your honey to a trip around the world and you want
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to pull out some money, Oh, you can do that. So you
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don't have to wait till a fifty nine and a half. So I could
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access it if I'm thirty now, I could access it when I am forty.
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As long as there's enough money in the bucket, you can access it.
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You can be your own bank. Okay, we're coming back to the
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leader. But I am already liking it at least a little bit more than
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bucket number one. Okay, oh good, I like it bucket number two.
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So with this bucket number two, we would set it up like it
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would be a long term. It is a long term situation. Over time,
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it is going to be amazing. This actually can help you in your
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retirement. As our retirement planners that we are, we have you have this
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bucket in retirement. So bucket number one, if you're going to go pull
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money out of it, you're I'm going to take a chunk of that,
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right because it's a retirement account. It's a four one K and IRA four
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or three B four fifty seven. It's a retirement account. The government is
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going to take taxes. We just don't know what it's going to be our
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bucket number two. No taxes come out of this bucket as long as you
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have it's structured correctly by really smart, beautiful women, just high just saying
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it, just say it. So structuring it great. You will have a
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tax free retirement income stream. Hang on, I don't even say income stream
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with the last one. No, because I don't know if the money is
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going to be there, and I don't know how much it is going to
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be there, and I don't know how much taxes you're going to pay,
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So I can't tell you that's going to be an income stream. It's going
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to be a bucket for you term, but I have no idea what it's
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going to be. History has shown us you should be fine, right,
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but this is fine? Okay, Okay, here's the kicker you it is.
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This bucket of money is wrapped around with a life insurance policy. So
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you also are going to leave a legacy. Is that important to you at
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all? Yeah? I don't know if I want to have children for sure,
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but it's definitely important for me to feel like I'm leaving something behind to
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make some kind of impact, some kind of impacts there you go. Perfect.
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It could be to the horse world. It could be absolutely the animal
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world. It could be to my trust dog fund, your trust dog fund.
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I love it. So this one lets you leave a legacy. So
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bucket one, it's called a retirement account. Four one k IRA for seven
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four to three all of that anything that's pre tax dollars. You don't pay
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any taxes on it now. And that's supposed to be the gimmick. But
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I can tell you, do you think taxes are high or low? Right
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now? Probably feel high every year when I file my tax return, right
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they do? And when you look at the tax bracket history, are we
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high? Are we low? Am I? Me or the client? I
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know? Right? So we're actually really really low right now, y'all?
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So just google tax brack income tax bracket history, and then for fun check
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out marginal tax rate in the US history and I'll give you more of like
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the averages of where the actual American is falling, and it shows you kind
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of gets weaves out a little bit of a one percent parts that's changing the
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narrative there, right, So marginal tax rates. Two is something I always
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love that they look for. Yes, that's all different. Love it,
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love it, love it. And so when you look at that, we
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actually are on the lower end of taxes. And I think y'all know about
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the debt ceiling they're talking about right now in Washington, and I think you
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kind of hear about that little bit. In fact, one's going to show
13:16
you the oh we are, Yeah, we have to. We have to
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hit a share screen. I don't know where that is. It's oh present,
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you're awesome. So we're gonna show you right now what's called the US
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National Debt clock in real time. So if you're driving or whatever, when
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you have time, go look at US debt clock dot org, I believe,
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And so you're going to see how much we're clicking. It's just continuously
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growing. With our debt continuously growing. We absolutely have to raise taxes down
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the road. Like it's just the way it is. It has to don't
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worry about it. But I can tell them, and it is dot org
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it is or dot org. Okay, great, and it's four trillion or
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thirty one thirty one trillion, seven thirty one point seven y'all. Yeah,
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there y'all, Okay, closer to thirty two than thirty one trillion dollars.
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And that's not coming down. It's going up every second, So check that
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out. So if you don't believe us that we're saying, taxes are going
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to go up. So when you put all this money, pre tax dollars
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into this amazing account and you're growing it, it feels really really good.
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Like I have a friend that has a million dollars in her four O one
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K in our retirement account, it's amazing. But what happens if the taxes
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are sixty percent then you actually only have four hundred thousand and your retirement account.
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Can you live on four hundred thousand for the rest of your life or
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do you need that million? So let's pay taxes now where we can control
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it. Any other control freaks out there kindling little. So I want to
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know what's happening now. I want to know where I'm at now so I
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can plan from here. So that's the one thing about taxes. We want
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to pay taxes now. Like we used to say from Brentwood, the Cornfield
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area, we've paid taxes on the seeds of the cornstocks instead of the entire
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it's called harvest exactly before the harvest would pay much more to taxes, So
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pay taxes on it now. This also might be sounding something like, what's
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the other thing that we pay taxes now and let it grow and come out
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tax me later. Oh that thing that Senator roth invented called the roth ira.
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And I know the roth ira has gotten a lot of press over the
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last many many years and a lot of great press, and a lot of
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people do know about the roth ira. We love that, we love the
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roth ira. It's great, fantastic. What's some good points about it?
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I mean, like we covered before, but to reiterate, right, you're
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paying taxes now, so we're paying taxes on the seeds. Then as it's
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growing, we're not getting taxed, and then in the end, once we're
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fifty nine and a half, we can pull it out with no penalties or
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taxes. Right. So that's sounding really good to me. I like it.
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Um So instead of paying it on the premiums that are well now I'm
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jumping ahead, but again paying it on the seed versus the harvest. Awesome.
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What's the downfall of the roth ira? Rt h ira? What's one
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of the downfalls. You're capped on the limits, right. I can believe
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it's sixty five hundred this year, So that's not very much money if you
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are getting serious about retirement and you're in your forties and you're saying, hey,
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I want to put a large sum of money aside so that I can
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you name it right, travel the world, Visit my grandkids, help my
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children with college, help them buy their first house, first weddings. I
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mean, those are things we hear every day on the daily. So SI
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ain't gonna be doing much. That's really not like, that's not even going
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to book you very many wedding very many wedding venues, at least in our
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area. Right, So it's not going it's going to be a drop in
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the bucket, right. And that's the biggest drawback that we see with raw
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iras. Like if a client comes in, it's excellent that they have a
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healthy balance in there, right, But they soon realize that either they get
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priced out of it, meaning that they start earning more money. Oh what
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so what happens when you earn too much money? Oh? Yeah, Uncle
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Sam doesn't allow you to contribute money to a roth IRA restrict you Yes,
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So everyone out there right now that's making too much money, which is usually
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in the mid six figures one fifty couple, you're thinking you're around like two
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hundred thousand. That's where you're going to be looking at being phased out of
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the roth Ira. That's where they start saying, you know, instead of
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sixty five hundred, you could put to twenty five hundred in right, and
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it starts becoming a pain in the butt. Your CPA has got to do
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all these calculations and things. So we have bucket A for you instead of
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the roth Ira. That's why we call it the super roth right, So
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our bucket A is the super roth like. We love it. And it's
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extremely flexible as well. So if you have a roth Ira, that's awesome,
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that's great. Yep, you're if you're married, couple spouses one has
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one, one doesn't, that's fine, that's wonderful. You want a tax
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free bucket in retirement for sure, Yeah, that's great. And if you
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want to put more into it and supersize into it versus a retirement account,
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versus your four one K four fifty three four fifty seven four all those instead
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of doing that, pay taxes now and do our super wroth so that it
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can come out tax free later. We are going to always give you the
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pros and the cons. Like we said, so what is one con from
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our bucket a our super roth? So one con is that it needs time
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to grow. Yes, it does. So it is a turtle. It
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is not the hit the right stock and make a million dollars overnight. Right.
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This is not a get rich quick strategy by any stretch of the imagination.
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Right, even when we have somebody come in with a large inheritance and
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they want to set one up, it's it's still process and it takes time.
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The minimum we've done is putting premiums in for five years, and so
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we can structure one that we're putting money in for five years and then let
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it grow for the next ten, fifteen, twenty years. That's fine,
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but we have to it's a long term. It's a tortoise rights. It
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takes a little bit of time. Now, I want to make something clear.
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You can go online and they'll sell you single premium life insurance policies all
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day long. So when we say we're not setting it up that way,
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it's not because we're uneducated or don't realize that it's an option. It's because
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when you look at the way most policies are structured, and I'm talking about
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the policies that are structured for accumulation purposes, right, So they are literally
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structured to compound at a faster rate than the same style of investment. Right.
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So they're all called an indexed universal life is what we're talking about.
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We'll talk about some of the alternatives in a moment, but if it's one
20:03
in next universal life insurance policy is not equal to the next. So again
20:07
coming back to how how how much money you want to put in and how
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often you're going to contribute to the account. Um it's important to look at
20:18
how it's structured because yes, you might be able to physically do it on
20:22
paper and do one lump premium into the account and watch it grow, but
20:27
typically you're going to see that the uh, the amount of expenses early on
20:33
don't make that worth it. And if you simply divide that chunk of money
20:37
up into you know, five years, ten years, whatever, you're going
20:41
to see how that compound effect will actually work better. Right, And that's
20:45
something that we run for clients all the time, right. And then we
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educate them for sure, right, and it's their decision for sure. And
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I've had a couple of people do the single premium around just because it was
20:55
easier and it was less taxing U, and that was the position they were
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in. But like Jennifer says, if we want to talk about the best
21:03
way for this to work for you, we're looking at a five year premium
21:07
situation exactly. And that's one way to structure it. Like Juliet said,
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that's the way we're structuring it. We can structure it many ways. They're
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very flexible. They're very flexible, like we have I have clients doing a
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couple hundred dollars a month and I have millionaires doing two hundred fifty thousand a
21:22
year. You're ready for this, Yeah, it puts the F and flexible.
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Oh, I just love her when she's all sexy like that. I
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don't know. We're f and flexible another F word we love. And I
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just said, this isn't it not just so flexible? I love it well,
21:34
And that honestly is what makes them. That's a con. Our next
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con they're sometimes they're so flexible, it's hard to understand all your options,
21:44
especially as an insurance buyer or as a client. And that's why when Jennifer
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said earlier, you need two beautiful, sexy ladies to help you with these
21:53
policies. You can pick not pretty ones. That's fine, But the point
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is you may find that having somebody besides that one eight hundred number to call
22:03
is going to be really really helpful. You just again, we don't know
22:07
what is going to be around the corner, right, and if big goals,
22:11
big dreams happen, you know, seven years down the road and you're
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going, hey, I've got this large sum of money in that account,
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Jennifer, what could I do with that? Right? There's options, right,
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so we're talking about but we're focusing on using this account, this bucket
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right to compound and be there for retirement. But there is a lot,
22:33
there are a lot of ins and outs to how they work and what makes
22:37
them so flexible. I love it. I love it, and that it
22:40
does get confusing, and it also clients come to it it's too good to
22:44
be true. So here's another right, there are fees. This is not
22:48
free. No one works for free. There's no free lunch, not at
22:52
all. So there are fees, which is why this is a long term
22:55
investment because the fees come out first. So in the first seven to ten
23:00
years, depending on the structure of the policy, you will be paying fees.
23:03
Now, if you keep that, if you're only going to do it
23:07
seven to ten years, the fees would be too high and it would not
23:08
make sense. Right. And that's again the first seven to ten years,
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we're paying the taxes on the seeds. Right. We paid Uncle Sam through
23:18
once week when we got our paycheck, right, the taxes already came out,
23:22
and then after that it's going into the account. And then there's a
23:26
little bit more fees there, right, like we just said, and then
23:30
it grows. And that is where when you look at how the account grows,
23:37
there's a lot of pros which I know exactly when you go long term
23:41
and the fees come out first and then you go long term, it's more
23:45
like a safe investment. So what this is doing for you is it's growing
23:48
your foundation, your financial foundation. It's safe, it's secure. It's building
23:55
the foundation of your house. Do you want it on wood, you want
23:56
it on slab, whatever you want. It's a very strong all foundation for
24:00
your house. Then you can do the stock market. You can do bonds,
24:04
you can do crypto, you can buy houses, you can buy business,
24:08
you can be a venture capitalist. You can do all that to build
24:11
your house. Each wall is a different bucket, which would be amazing for
24:12
your beautiful house. This is the foundation that is secure. Talk about secure.
24:19
Talk to me about the difference of say the stock market when money's going
24:25
up and down versus or banks. Oh, hello, bank company, even
24:30
this week and a few weeks ago as well. Yeah, way back when
24:33
we you know, we were like, get a CD, get a CD,
24:36
like that's what we were told all the time. And now banks are
24:38
you know, having that worry again. Like it's not as bad as it
24:41
was in two thousand and eight, but the bank is having worries again.
24:44
So let's talk about that, kay quick, Like so Jennifer, and let
24:48
me play the client and ask you, is how safe is my money?
24:52
If I'm putting, you know, potentially hundreds of thousands of dollars into a
24:56
policy like this because I want it to be significant at the time I'm drawing
25:00
on it, how safe is it? And I'm not saying is it safer
25:03
than a bank? But the question is how safe and how as a client
25:10
or a buyer, would I go value and figuring out how does that make
25:12
it safe? Right? Yeah, I totally get that. Thank you for
25:15
that question, miss Juliet. That's a great question to have. So banks,
25:18
you might all know that are insured by FDIC, insured by the government
25:22
for two hundred and fifty thousand per person per registration in an account in a
25:26
bank. So the government insures money in your bank. So that leads people
25:32
to think that that is the best thing ever, it's all safe, it's
25:36
all wonderful. Then we have people storming our capital. Then we have people
25:40
not knowing what the heck's going on in Washington. So how safe is the
25:42
government? Well, we haven't fallen. We're a good company, I mean
25:47
good country, a good good country. We are young, per se.
25:51
Has there been other countries with trouble, Yes, but have they always pulled
25:53
out of it? Yes? So that is the bank side, the insurance
25:57
company's side. First of all, have to have more money on hand because
26:02
they are required to be able to cover death benefits permanent life insurance policies.
26:07
They have different rules and regulations than banks do, and they're actually stricter.
26:11
Just so you know, you want to get into the nitty gritty and look
26:12
it up. You will find that the insurance companies are held to a higher
26:17
standard than the banks because if you think about it, right, And I
26:21
don't like putting these things out into the universe, but it's important to talk
26:25
about a situation like nine to eleven. Right, there were hundreds of thousands
26:30
of people who passed away, tens of thousands, of tens of thousands a
26:34
lot right in New York to pass away, and every single one of those
26:40
insurance policy claims was paid. Yes, And that's what insurance companies do.
26:45
They ban together and ensure each other to make sure that the industry is extremely
26:49
safe. Right. And it's not a run on the insurance company. I've
26:55
never heard that. I've never seen not in a headline, right. And
26:56
there's a reason for that. And you can look up look more into that
27:02
if you wish, but it's it's or give us a call, give us
27:06
a call. We'll explain it, right. And then then that is important
27:07
to note. I love that you said that they paid all the claims um
27:12
for nine eleven. They absolutely and they actually did, and they didn't have
27:15
to have to because it's an act of God. It's terrorism. That's all
27:19
um listed in the policy. Right So they didn't have to, but they
27:22
did not, but they knew that that would shake the faith of the insurance
27:27
comes the whole if they didn't, right Um. And again that goes to
27:33
show that they don't just fold and fail exactly. They band together and pull
27:37
each other out, which which I love that. So on the safety side
27:42
of it, then we have the doomsdaes, right, well, what happens
27:45
if the government collapses, What happens if there's a recession, what happens if
27:51
you know, nuclear war or we have another terrorist attack and San Francisco falls
27:55
off on the ocean or whatever all that? And are you going to this?
27:59
I love what Rob says. Are you going to pull up your account
28:02
and go how's my IUL doing? When you're getting stormed by terrorism or any
28:06
of that crazy stuff. You're not going to care about investments at that point.
28:10
You're gonna want again and some water and good people around you because that's
28:15
not going to matter at that point. So if you're doomsdare, we don't
28:18
care what Apple's doing today. If it's you know, if it's a whole
28:22
doomsdare, and if it's not we still want to set ourselves up for later
28:26
in life, and that's what we do. Oh ding ding ding Another positive
28:30
on bucket A Okay, let's hear it. It has what's called living benefits.
28:36
So if you get chronically critical terminal illness, each one structured differently,
28:42
so you need to discuss with your person, preferably us, what you would
28:47
like. I love it. There is a money bucket for you to get
28:49
to before you pass away, so you actually have your own little, separate
28:55
care bucket that you can reach into. We had a friend of ours who
28:57
had cancer and he reached into his i UEL bucket to travel to Germany in
29:03
order to extend his life for a while and get some more treatment and get
29:06
a different type of treatment. And he did. And we don't always have
29:08
that fifty grand line around and so if you can actually pull that out of
29:11
your life insurance death benefit early. So there's another perk to it. Okay,
29:17
per pro con pro con pro con it. What would be another let's
29:22
see any complaints that we might have. Besides, a lot of our clients
29:26
need to understand that this is a foundation long term. It is not a
29:32
short term get rich scream. Now we did great in the stock market in
29:34
twenty twenty, we doubled our money. We did amazing. Rob's amazing.
29:37
We have buckets there as well. That's great, shout out Rob, and
29:41
so you can make very good money. We're not saying that, however,
29:45
right now it's down. So when it's down, we still have our foundation
29:48
growing because you cannot lose your money. If the stock market drops, you
29:52
just get zero. But if the stock market's five, you get five.
29:56
And it is called indexing. So we we'll play a commercial and then Juan's
30:03
going to see up the commercial right now, he's our amazing engineer. And
30:06
then we're gonna play the commercial, and then we're going to come back and
30:08
talk about what the heck is an index and how does this bucket actually make
30:11
money? Yeah, talked about pros and con but how does it work right?
30:15
What kind of money does it really make? And how can we benefit
30:18
from that? Okay, one, I'm ready for the commercial and tell me
30:21
you're I know, I didn't give any notice on that, So you just
30:23
cut us off anytime you want, because wait, the show isn't over yet.
30:27
There's more fun and finances ahead. Jennifer will be right back as we
30:32
have a special bonus offer for you right here on Rock My Financers Broadcasting live
30:37
on K four HD radio and Talk for TV. Hey y'all, it's Jennifer
30:42
Jost. Are you ready to transform your relationship with money? Rock My Finances
30:47
Club is your weekly mastermind for wealth empowerment. Join me live for your personal
30:52
weekly group video sessions and access your personal portal with the video library at any
30:59
time, including your success system and way more bonuses. Go to ROCKMF dot
31:06
com for your financial empowerment. Make yourself a priority today, schedule a check
31:11
with me at ROCKMF dot com and achieve your feminine financial freedom. Finally,
31:18
oh and don't forget to ask me Pat to say fifty See you at our
31:22
weekly mastermind. Okay, Rock My Finances on Cape HD and Talk for TV
31:30
is back once again. Let's put the fund in finance with your host a
31:34
weekly friend, Jennifer Josh. Okay, we're back. Are you ready,
31:41
Juliet? What is an index? Well? Where to start? I usually
31:47
like to start with explaining a mutual fund because most people are familiar with a
31:51
mutual fund, right, But for those of us who are going, oh
31:53
gosh, let me pull out my phone and google it. A mutual fund,
31:56
as Jennifer taught me so many years ago, now, is a basket
32:00
of companies. It's a basket of stock of hundreds of companies, right,
32:05
and you're buying If you buy a mutual fund, you're buying a share of
32:09
that fund, right. So there could be hundreds of shares, right,
32:14
and the fund's going to go up and down, and you, as the
32:16
investor, get to own a piece of that fund and be able to with
32:21
a small amount of money, be able to diversify across hundreds of companies potentially,
32:25
right, depending on how big the fund is. So you're spreading some
32:29
risk, but you're also able to participate when it's winning or when it's losing.
32:36
Yeah. The difference between a mutual fund and an index is that an
32:39
index, well, first of all, it's it's sold through an insurance company.
32:45
Okay, so we're not buying this on the SMP. You're not going
32:47
to go out and just buy you can an insurance company into its separate there's
32:52
separate indexes. Yes, And the best way to explain it is that it
32:57
works very similarly to that mutual fund. So you can buy an index Universal
33:01
Life insurance policy and participate in say the SMP five hundred hundred, right or
33:08
the Russell two thousand. Within that policy, you have choices, and again
33:13
that's going to come down to what carrier you choose and what they offer.
33:16
Right. Don't worry, we educate you on all that. You get to
33:19
choose your own index. We don't expect you to come to us having all
33:22
that solved. Yes, right, but I think was that a good Yeah?
33:29
That's great. So an index is like that, like she said the
33:31
mutual fund. It is looking at hundreds of companies, so you actually get
33:37
diversification. Each index is like a basket of companies, just like she said
33:40
the mutual fund is. So when you go to sit down and do your
33:44
policy, we will educate you on which index is doing well now and what
33:47
we think will do for each year. Normally the insurance companies will let you
33:52
change indexes every year every anniversary, on the policy anniversary. All right,
33:55
I just got an email on today. Hey, you've got a window.
33:58
Would you like to make any change? Right? That's perfect. Now,
34:00
there's some insurance companies that actually will let you lock in a rate. So
34:06
like right now, if you're index, say it's up six percent. You
34:09
can actually lock that in right now in case it goes down before your anniversary
34:15
date. So you don't need to know what any of that means. Just
34:17
know that they're locked in ones as well. Really, what is that?
34:22
It's one of our other things. That's not an a word, but it
34:23
gives you control. We love that. We love control, and I love
34:27
it. Right. It gives the policyholder a chance if they're logging in and
34:30
they're watching things and they've got an opinion about where the market might be going,
34:35
it gives them the freedom to say, hey, Juliette, you know
34:37
what I really like where the policy is at and we're in the positive.
34:39
Right, maybe we're at eight percent. Maybe maybe I'm not sure that the
34:44
market's going to do anything better than that, and eight percents all I need
34:46
to feel good about where this account is going. We can lock that in.
34:52
It cannot be four percent. Feature. That's a newer type of thing
34:55
that we're seeing in strategy. Love it, love it, love it.
34:59
And everyone's different. So yes, everyone has a different threshold of risk.
35:04
Is what we say, right, what's your risk tolerance? You might have
35:06
heard that before. That just means when you're going to freak out and throw
35:09
a brick through Juliet's window when the market goes down. Like, where's your
35:14
risk? Can you lose five percent, ten percent, twenty? Can you
35:16
not lose anything? And then how much do you need to gain to structure
35:21
your lifestyle the way you want it to be? Yes? Do you need
35:23
three percent, four percent, ten percent? Do you need the Ferrari to
35:28
get there? Like? What do you need? And so that's your risk
35:30
tolerance and that's our job. We help you figure out what is your comfort
35:35
level in investments. That's another reason why we love the IUL because it cannot
35:39
go down. Once you get that eight percent, six percent, five percent,
35:44
four percent, whatever it is, Once you get that money on your
35:45
anniversary date, you cannot lose it. It stays there. Let's say the
35:50
index crashes and you get nothing, You just get zero that anniversary year.
35:53
You just don't lose any money. They don't take any real life scenario.
35:58
Right, You're we're sitting down with Cliance right now and we're reviewing their life
36:01
insurance policies and we're also reviewing their stock portfolios at the same time. Right,
36:07
and I have to tell you that most of my clients want to talk
36:12
about the life insurance policy, and they're like, I don't even want to
36:15
look at that account right now. Right, it's not doing most exciting things
36:20
that it was doing just a couple of years ago. Right, And so
36:23
again it's it's coming back to that effort of foundation. This is the foundation
36:29
of the plans. So on the years when the stock markets taking off and
36:31
running, they're going, yeah, yeah, okay, that account's flying,
36:35
but what's my account doing that's growing rapidly? What's that one doing? Right?
36:38
So again it sort of gives the insurance business a little bit of a
36:44
bad rap just because they're a little bit more of a tortoise seeming right.
36:49
Seemingly they're more of a tortoise on the years that the stock markets taking off
36:52
and having double digit returns, Right, But then you have years and scary
36:58
times banking crisis and things like that, and all of a sudden you're not
37:00
so confident in that account, and so you want an F word foundation.
37:05
You want lo speed breaks, right, Like, where's the E break?
37:08
How do you control that? I you pull it, spin it around.
37:13
I Mean, the only E break in an investment account, right is to
37:15
do some sort of option which has risks and fees associated, or to pull
37:20
out and go to cash, which is all that other situation, because then
37:23
when do you get back in, Right, I'm gonna leave it at that
37:25
for today. I wish I had a crystal ball, But you're right,
37:29
Okay, So that's good. Okay, So even if I don't, as
37:32
the client, really completely understand indexing and all of that, you're gonna explain
37:37
that to me right when we and every year, Yeah, you're gonna explain.
37:40
We're gonna go over it every year every year, because this is a
37:43
very new concept now, and the life insurance is concept as well. Right,
37:47
So we go over what's the difference between term, which a lot of
37:51
people have, which is term renting, renting insurance or permanent insurance, which
37:57
means when you die, someone's going to get money, period, no matter
38:00
what. Well I think think of that too, right, I mean term
38:02
you're renting the coverage for a period of time, a term, a term
38:06
of ten years, twenty years, thirty years, whatever you signed up for
38:09
right on that date. If you're going the permanent insurance route, you are
38:15
buying this policy on you for your whole life. Right, And it's honestly
38:22
a little bit more of a commitment than buying a house, because it really
38:24
the whole goal is to be to be hon you for your entire life.
38:29
And as we used to say, die with a dollar in the policy.
38:30
So, right, a ton of money in and we want to take as
38:34
much as we can out. And Uncle Sam's rules are we gotta die with
38:37
money in the policy. It's in order to be a tax free exactly,
38:40
so we definitely have to have a death benefit at the end. So here's
38:44
the criteria. If all of this sounds good to you, check it out.
38:46
Go to ROCKMF dot com. That's rock my Finances dot com, ROCKMF
38:51
dot com and get on a quick fifteen minute call with me and or Juliet
38:54
and we will see if you can qualify. Because here's one big con sorry
39:00
y'all, Oh we did save this one. Yeah, we did save this
39:02
one. You have to qualify. So that mean, right, you have
39:07
to be healthy or someone that you are financially attached to has to be healthy
39:13
in order to have this type of a policy. Yes, So diving into
39:15
what that means too, right, is you're going to go through underwriting,
39:20
You're going a literal underwriter is going to be sitting there reviewing your medical history.
39:23
You're driving records and seeing what you look like on paper. Okay,
39:27
so if you're sitting there going ooh, I not a good time for me
39:31
right now, maybe you've got a spouse that you can ensure. And I
39:36
know, again back to its control freaks, you can actually be the owner
39:40
on a policy that is somebody else's the insured, right, So I could
39:45
we're business partners. I could buy an insurance policy on Jennifer. People do
39:50
it all the time. And if she were to kick the bucket, so
39:52
I'd be paying into it, right And if she were to kick the bucket,
39:55
you're not allowed to, dang it, then I would get pay for
40:00
that, even though it's on her life, and she could do the same
40:01
thing on mine. Now, Branton, obviously we're gonna be aware. We're
40:06
signing documents. We're signing, Yeah, we do a whole buy celegreement.
40:09
It's that we've seen very often, especially in spouses where one spouse is very
40:15
healthy and the other one isn't it there's options there. So I did want
40:19
to say that, yes, we need a healthy body doesn't necessarily have to
40:22
be yours, right, we just have to be financially attached and has to
40:27
make sense to the insurance companies. So I have a client right now that
40:30
we are doing we were going to do I think twenty five or thirty thousand
40:35
a year, and so we are going to lower that a little bit because
40:38
her husband doesn't have as much insurance as we were going to have on her.
40:42
So we have the bucket and then we have the life insurance policy wrapped
40:45
around it. So it's very very flexible. You do two hundred fifty thousand
40:47
dollars rapper, you could do a five million to ten million, twenty million.
40:52
Now we only have about five minutes left, but I want to tee
40:54
up two things. The first thing is I'm going to tie up Miss Juliette.
40:58
What happens if which we get all the time? I just inherited a
41:02
corrupt ton of money, right, I know nothing about money. I feel
41:07
guilty because I inherited it from my family who passed away, passed away,
41:13
and I know nothing about the stock market. It scares me to death.
41:16
I don't even want to know any of that, and I have no idea
41:19
who to trust. Is this the right bucket for me, or is there
41:23
another solution? Do you Part two? Yeah, I'm going to say that
41:30
that's a loading question, right. I mean, everybody's situation is different.
41:35
Just because I know that this person inherited a ton of money, it doesn't
41:39
give me any of the specifics on what they want out of that money.
41:44
So I can build a great plan all day, but if that doesn't resonate
41:46
with you and where you're taking your life and what your goals are, it's
41:52
not a good fit. That's where it comes to the long term foundation.
41:55
We just have to get nitty gritty enough to know how you want this money
42:00
to work. And I would put like a ten year like thought hat on
42:05
for that. Yep, I love it. You don't have to have all
42:07
the answers. We're very skilled. I have to say, yeah, we
42:09
will help you, helping you find the right amount. The last thing we
42:14
want to do is overface someone with an investment or insurance policy that they cannot
42:17
afford to continue to or doesn't make feel comfortable. So there's a couple other
42:24
superchargers on our super roth so they're right. So there's one that I'm gonna
42:31
say, puts a jet pack inside your car. That's called Kaizanne, So
42:37
get in touch with us about that if you luck spell on it, right,
42:40
I know, but it's amazing, Like that's what we're doing for my
42:44
daughter Journey and miss Juliet. Do you have straight premium finance? Okay,
42:49
so then now I ran the number like a double jet pack or something.
42:53
There's also that you can do as well, which is called premium financing.
42:57
So there's lots of different solutions out there other than a four ow K,
43:00
which is all we ever hear out there. And that's what our main purpose
43:02
is here because what I'm finding is after I've been with clients for ten,
43:07
fifteen, twenty years, they're retiring, they do not want to pull out
43:09
of their iras because they have to pay so many taxes, so they're limiting
43:14
their lifestyle. That's what we do not want for you. We want to
43:17
have a tax free bucket so that when you're not working every single day and
43:22
you want to go take a vacation or take up an amazing hobby of say
43:27
painting or golf. Hello, I'm a golfer and it cost a lot of
43:29
money to golf, So when you're doing that, we want to make sure
43:31
that you have a bucket that you don't have to think about to pull money
43:35
out of. And in the meantime, like I have a client who pulled
43:37
money out. It's as a loan, which we will explain to as well.
43:42
But she loaned money to herself in her policy to buy a Tesla,
43:45
so she could have done the financing through Tesla, but this was way cheaper
43:49
and she's paid herself back. So you can be your own bank as well.
43:52
I know your own bank. Next time, everyone, I can wait
43:55
to go through part two. Yep, So we have four minutes left.
44:00
Let's talk about what why people would be apprehensive? Yeah, right, commitments,
44:10
right, commitment of folks. Well, what happens if I say yes
44:14
today and then say two years down the road, I'm scared because I don't
44:19
know what it is. What happens then? Who we meet and we talk
44:22
about it. Awesome, So there's flexibility the effort. Oh yep, that
44:25
efforts back. Right, we meet, we talk about it, we figure
44:28
out what's life like now? What changed? Right? We built a plan
44:31
that looked good day one, But what was the difference between day one in
44:36
year two or three that we're in? Okay? Right? And we start
44:38
there, and then there's tons of different options. We could scale down the
44:43
policy, right, we could change how you're funding it. There's honestly a
44:46
lot of options, even though that's not our goal when we're setting the account
44:52
up. Right, So, like, someone could lose their job, like
44:53
I did have that the client, which is very very radn't had one at
44:57
all, but they lost their job and could not pay the second year,
45:00
So what do we do. I haven't actually had a family member who got
45:04
laid off, so we just lowered the premium. So there's lots of different
45:07
flexibilities that you have. Now, let's do it on the cons or the
45:10
pro side. What happens if you set it up today to put in,
45:15
say I don't know, five thousand, ten thousand a year, and then
45:17
I step into an inheritance next year, right, Well, that's going to
45:22
depend if we filled the bucket up as much as Uncle Sam allows us to
45:28
then policy right, But if I didn't, if we hit hard times in
45:32
year two and we had to scale back our funding. The good news is
45:37
there's this thing called backfilling, something that you don't see with retirement accounts.
45:42
Right, If I didn't have the money to put it in last year and
45:44
it's now the next tax here. I can't do it, you'll lose it.
45:46
Right. So that's where again that f word of flexibility that I think
45:52
we're hammering it because it's undervalued. I get yeah, yeah, yeah,
45:57
I forgot about that backfield. That's totally awesome as well. So it's so
46:00
flexible with your lifestyle because, like as Juliette is a young in here,
46:05
she doesn't know what's happening when she's forty, she has no idea, and
46:08
this policy is a long term thing. So we love that it is flexible.
46:12
Right, I'm sitting in a position if I need money for future kids
46:15
that I haven't even decided I want to have yet, it'll be there and
46:17
I know that, right, And it'll also be there if I decide not
46:21
to have kids and go be a horse mom and go buy me something fancy.
46:24
Right. It's it's it's flexible. That's awesome. So if somebody wants
46:29
to talk to you, mis Juliet, how do they find you Juliet Cardona
46:31
dot com. You can book a time with me there. The first one
46:35
is complimentary, and I would love to see how we can help you build
46:39
a tax free bucket awesome. I love it. Thank you all so much
46:44
for this amazing day. We love talking about this, absolutely, love honor
46:47
to be back, love her on here, and we love talking about this
46:51
because it's helped out so many clients. So we hope we didn't hammered in
46:54
too much. Jordi the details, try it out with the fun. See
46:58
if it's for you. And this isn't for everyone because you have to have
47:00
money consistently, so you have to have it like we don't present it to
47:06
just everyone. You have to have a good, consistent money. You have
47:07
to have discipline to stick to a plan, and the desire and the desire
47:12
and the desire to be in control now over your money to be able to
47:16
have the patience to let it grow over time. So I hope you loved
47:20
it, but it's I've had my bucket. I've had several of them.
47:22
I love them. They saved my life forever. Thank y'all. I want
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you to be able to say I rock my finances. I rocked mine like
47:30
none other. And we'll see you next podcast by We appreciate you joining us
47:36
today, and don't forget to subscribe to the rock my Finances YouTube channel.
47:40
For more engagement and bonus content. Tell me what is your money story?
47:45
Let's find out with Jennifer four pm Eastern one pm Pacific, every Thursday right
47:51
here on k forour HD radio and Talk for TV. It's not about the
47:55
zeros, It's about the F word. Feelings, feelings Jennifer can't wait to
48:00
explore with you next week. Until then, let's all say I rock my finances.