Latest / Earn Your Leisure / 5 Steps to Make Your Child a Millionaire (Start Now!)

Transcript

5 Steps to Make Your Child a Millionaire (Start Now!) · Earn Your Leisure

• 0:00
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 0:03
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 0:07
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 0:11
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 0:15
  Speaker 1: some of the heinous migrant criminals caught because of President
• 0:19
  Speaker 1: Donald J.
• 0:20
  Speaker 2: Trump's leadership.
• 0:21
  Speaker 1: I'm Christy nom the United States Secretary of Homeland Security.
• 0:25
  Speaker 1: Under President Trump, attempted illegal border crossings are at the
• 0:29
  Speaker 1: lowest levels ever recorded, and over one hundred thousand illegal
• 0:33
  Speaker 1: aliens have been arrested. If you are here illegally, your
• 0:37
  Speaker 1: next you will be fined nearly one thousand dollars a day, imprisoned,
• 0:41
  Speaker 1: and deported.
• 0:42
  Speaker 2: You will never return.
• 0:44
  Speaker 1: But if you register using our CBP home app and
• 0:47
  Speaker 1: leave now, you could be allowed to return legally.
• 0:50
  Speaker 2: Do what's right. Leave now.
• 0:53
  Speaker 1: Under President Trump, America's laws, border and families will be protected.
• 0:57
  Speaker 3: Sponsored by the United States Department of Homeland Security.
• 1:01
  Speaker 4: Yeah, yeah, we're back, Happy Thursday, Happy Thursday.
• 1:05
  Speaker 5: Yes, Yes, welcome back to the educational series. This is
• 1:13
  Speaker 5: another one. I might even sure where number we're at.
• 1:16
  Speaker 4: I probably would throw around six, but I could be wrong.
• 1:20
  Speaker 5: We've covered a lot, we covered how to buy a call,
• 1:22
  Speaker 5: we covered things to know before buying a home. We
• 1:25
  Speaker 5: covered you know, process of buying a home, credit covered taxes,
• 1:31
  Speaker 5: we've covered artificial intelligence, so stocks. So this is one
• 1:37
  Speaker 5: that's always vitally important, you know, for everybody, but especially
• 1:41
  Speaker 5: for people that have a family, have children, thinking about
• 1:44
  Speaker 5: having children, have grandchildren, niece, nephew, god children, whoever, you know, anytime.
• 1:50
  Speaker 6: You want to plan for young people's future.
• 1:53
  Speaker 5: The term generational wealth is something that gets thrown around
• 1:56
  Speaker 5: a lot, but what does that really mean?
• 1:59
  Speaker 6: Right?
• 1:59
  Speaker 5: It means to create wealth for generations to come. So
• 2:03
  Speaker 5: today we're going to do the first step. We're going
• 2:04
  Speaker 5: to teach you how to make your child a millionaire.
• 2:09
  Speaker 5: I think we've already taught you how to make yourself
• 2:11
  Speaker 5: a millionaire if you follow the principles. But we're going
• 2:14
  Speaker 5: to teach you how to make your child a millionaire.
• 2:17
  Speaker 5: And we get five steps. This is gonna be five steps.
• 2:20
  Speaker 5: It's not the only five steps with five five steps
• 2:23
  Speaker 5: that you can utilize in your life to achieve that goal.
• 2:30
  Speaker 7: Yeah, yeah, it's one of these things. And it takes
• 2:32
  Speaker 7: me back when we were looking at the notes for
• 2:34
  Speaker 7: the episode. It took me back to being twenty four
• 2:37
  Speaker 7: years old, twenty five years old, sitting in your office
• 2:40
  Speaker 7: and you actually breaking this down for me at that
• 2:42
  Speaker 7: age and at the time I had no kids, wasn't
• 2:45
  Speaker 7: engaged and have a wife obviously, and part of me,
• 2:48
  Speaker 7: like a small piece of me, was like, yo, why
• 2:50
  Speaker 7: do I need to do this? But being educated on
• 2:52
  Speaker 7: it very quickly, I was like, oh, this makes perfect sense.
• 2:55
  Speaker 4: Right.
• 2:55
  Speaker 7: I always say my favorite line is if you plan
• 2:58
  Speaker 7: for now for the future, right, like, think about your trajectory, right,
• 3:01
  Speaker 7: it's that sheet line plan for the future, because you're
• 3:05
  Speaker 7: gonna be older a lot longer than you're gonna be younger, Like,
• 3:07
  Speaker 7: here are the strategies now while you're young. So this
• 3:09
  Speaker 7: is like a selfless actor if you're an adult, but
• 3:12
  Speaker 7: it's a necessary act. So hopefully you got your pens
• 3:15
  Speaker 7: in your pass ready because it's going to be an educational.
• 3:16
  Speaker 5: Session, yes, sir, So before we start, definitely have to
• 3:21
  Speaker 5: extend our condolences to EYO alumnist alumni. Absolute actually a
• 3:26
  Speaker 5: brilliant person when it comes to the world of business
• 3:30
  Speaker 5: and ALTHO philanthropy and just a legend junior Bridgeman. We
• 3:36
  Speaker 5: covered his story actually at the beginning stages of early leision,
• 3:39
  Speaker 5: somebody that was an NBA player and then you know,
• 3:43
  Speaker 5: became a number one franchise owner for Wendy's and Chili's
• 3:48
  Speaker 5: in the world, and then purchased a Coca Cola bottling
• 3:53
  Speaker 5: plan and became you know, a billionaire. Over the course
• 3:56
  Speaker 5: of time, owned Ebony magazine, owned Jet magazine of other
• 4:00
  Speaker 5: different things. So he passed away a few days ago.
• 4:06
  Speaker 5: We had him at Investvest a few years ago. He
• 4:09
  Speaker 5: spoke on stage with Rich Paul. Great conversation. So definitely
• 4:16
  Speaker 5: want to extend our condolences to his family, to you know,
• 4:21
  Speaker 5: the Louisville community, the Milwaukee community, the East Chicago community.
• 4:25
  Speaker 5: It was part of a few different communities, but all
• 4:28
  Speaker 5: the lives that he's impacted, and hopefully, you know, people
• 4:33
  Speaker 5: can learn even more about his story now that he's
• 4:36
  Speaker 5: passed away and use it for education and information and
• 4:39
  Speaker 5: motivation inspiration. So you know, to honor to be able
• 4:44
  Speaker 5: to have him shared a stage with him, ask some
• 4:46
  Speaker 5: questions somebody that we we you know, we highlighted early,
• 4:49
  Speaker 5: so that was a full circle moment. So definitely before
• 4:53
  Speaker 5: we started the show, wanted to extend our condolences to
• 4:57
  Speaker 5: Junior Bridgeman's family and friends.
• 5:00
  Speaker 4: Opportunity to actually meet his family.
• 5:02
  Speaker 7: Beautiful family, beautiful man, and I'm happy we got to
• 5:05
  Speaker 7: give him as flowers at the time that you know,
• 5:08
  Speaker 7: when we were covering the early stories, when it was
• 5:10
  Speaker 7: just you and me, uh, and people were like, oh,
• 5:12
  Speaker 7: we didn't understand who he was. People started to get
• 5:14
  Speaker 7: familiar with him, and then obviously at Investmvest, our community
• 5:18
  Speaker 7: for sure got a definite feeling of what he's done
• 5:20
  Speaker 7: inside of business, but who he is as a man.
• 5:22
  Speaker 7: And even you know, up into his untimely passing, he
• 5:25
  Speaker 7: was still giving back, right, he was still doing philanthropy,
• 5:28
  Speaker 7: was actually at an event. So it's untimely, it's it's
• 5:31
  Speaker 7: a tragedy. But I'm glad we got to give him
• 5:33
  Speaker 7: as flowers. And hopefully, like you said, people will now
• 5:36
  Speaker 7: look into his business acumen and the legacy that he's
• 5:38
  Speaker 7: left and hopefully emulated that to a certain extent. So
• 5:42
  Speaker 7: againdosis to the family, and I thought, some prayers are
• 5:45
  Speaker 7: with you.
• 5:45
  Speaker 5: Okay, So now let's get into it. Okay, First, you know,
• 5:50
  Speaker 5: why is it important to do this right? Well, I
• 5:54
  Speaker 5: think the number one thing is it all comes down
• 5:56
  Speaker 5: to math, and there's a thing called compound and interest,
• 5:59
  Speaker 5: and I think Warren Buffet at the compound and just
• 6:01
  Speaker 5: one of the windows of the world. And you know,
• 6:04
  Speaker 5: the earlier you start to invest, the better chance you
• 6:08
  Speaker 5: have of achieving wealth. That's just as easy to explain
• 6:13
  Speaker 5: as possible. If you start to invest at ten, you
• 6:19
  Speaker 5: will achieve wealth quicker than somebody that invests at forty.
• 6:24
  Speaker 5: If you invest at twenty, you'll achieve wealth quicker than
• 6:27
  Speaker 5: somebody that invests in fifty. So the good thing with
• 6:29
  Speaker 5: children is that they have time on their hands, right,
• 6:32
  Speaker 5: So as a parent, even small amounts of relatively small
• 6:36
  Speaker 5: amounts of money can lead to huge nest eggs. We'll
• 6:42
  Speaker 5: talk about some examples, but that's the probably the biggest
• 6:47
  Speaker 5: thing as far as why it's important to start thinking
• 6:49
  Speaker 5: about how you invest for your child and set your
• 6:51
  Speaker 5: child up is because time is on the side of
• 6:56
  Speaker 5: the child, so you want to take advantage of that.
• 6:58
  Speaker 5: Another thing is the preparation aspect of generational wealth. As
• 7:04
  Speaker 5: we said before, if that's the goal, then the earlier
• 7:08
  Speaker 5: that you prepare, the easier it is for you, because
• 7:12
  Speaker 5: the less money that you actually have to put out
• 7:16
  Speaker 5: that goals in the other way. So one way for
• 7:18
  Speaker 5: the compounding interest is that you start early and you
• 7:21
  Speaker 5: have a lot of money later. The other side of
• 7:24
  Speaker 5: that coin is that the earlier you start, the less
• 7:27
  Speaker 5: money you actually have to put away to have that
• 7:31
  Speaker 5: million dollars or the two million dollars or whatever you want.
• 7:34
  Speaker 5: So it all comes down in time. It comes down
• 7:37
  Speaker 5: to being a good steward and just really the responsibility
• 7:41
  Speaker 5: of any any parent, I think is to not only
• 7:44
  Speaker 5: better their life, but better that their children's lives for sure,
• 7:48
  Speaker 5: and then even their children's children's right, you really want
• 7:51
  Speaker 5: to create legacy for yourself. So these are things that
• 7:54
  Speaker 5: you can actually, you know, start today, and you don't
• 7:56
  Speaker 5: have to be a millionaire to start. We're going to
• 7:58
  Speaker 5: talk about different strategies where you can start with minimal
• 8:01
  Speaker 5: amount of money but still achieve that long term goal.
• 8:04
  Speaker 7: Yeah, and I think it's important right on top of
• 8:06
  Speaker 7: the savings part from obviously from the adult to the child.
• 8:09
  Speaker 7: But it's the educational process and there's no age to it, right,
• 8:12
  Speaker 7: Like we always talk about financial education in the sense like,
• 8:15
  Speaker 7: oh when should I start?
• 8:15
  Speaker 4: Where should I start?
• 8:17
  Speaker 7: We should start now and the educational process is great
• 8:19
  Speaker 7: if parents don't know, because this is a great place
• 8:21
  Speaker 7: for you to know, but it's also a great place
• 8:24
  Speaker 7: for you to learn with your children.
• 8:26
  Speaker 4: And so we're talking about investing.
• 8:27
  Speaker 7: What does that look like when you're getting a brokerasure account, right,
• 8:30
  Speaker 7: you're learning that, but you're teaching your child at the
• 8:32
  Speaker 7: same age and at a certain point when your child
• 8:34
  Speaker 7: has those lessons at ten, eleven, twelve, by the time
• 8:37
  Speaker 7: the eighteen and be able to own their own brokerasure
• 8:40
  Speaker 7: account and have their own investment accounts with a brokerage,
• 8:43
  Speaker 7: they're familiar with it. And that familiarity only can breed
• 8:46
  Speaker 7: success in the future. And so yes, from a financial standpoint,
• 8:49
  Speaker 7: but also from the mindset standpoint of this is not
• 8:51
  Speaker 7: something that is foreign to me. And we see that
• 8:53
  Speaker 7: in a lot of communities and we're starting to see
• 8:55
  Speaker 7: a shifting ars, but we need to see it more.
• 8:57
  Speaker 4: So, Yeah, let's get let's get to it.
• 8:58
  Speaker 6: Let's get it going.
• 9:00
  Speaker 5: Okay, So before we start, one quick announcement, Ian's done
• 9:05
  Speaker 5: laps Historic Stock Club, you know, universally known as one
• 9:10
  Speaker 5: of the best platforms to actually know when to buy
• 9:13
  Speaker 5: the stock and actually gives you the prices or when
• 9:16
  Speaker 5: the buy the stock. You know, we're going through some
• 9:17
  Speaker 5: stock market turmoil right now, so when to buy stock
• 9:20
  Speaker 5: is extremely important. And it also comes with a sniper
• 9:23
  Speaker 5: program for three years, which actually gives you a setup
• 9:25
  Speaker 5: to be a futures trader. Fifty percent sale that's been
• 9:29
  Speaker 5: running since market Mondays on Monday, and that will expire tomorrow,
• 9:33
  Speaker 5: so you have one day left for that, and that
• 9:35
  Speaker 5: is that ianinvest dot Com. Go to ian invest dot
• 9:39
  Speaker 5: com to take advantage of that one day left.
• 9:42
  Speaker 6: But then fifty percent off sale for stock club.
• 9:45
  Speaker 4: Shout to everybody that took advantage of it.
• 9:47
  Speaker 7: Thus for I've seen some people already in the chat,
• 9:49
  Speaker 7: like yo, man, I got that n video at one
• 9:50
  Speaker 7: o five, ran up to one to twelve and I
• 9:53
  Speaker 7: made it a fifty percent on my call. So shout
• 9:55
  Speaker 7: to y'all man taking advantage and executing them right away
• 9:57
  Speaker 7: right away.
• 9:58
  Speaker 4: Don't waste any.
• 9:58
  Speaker 6: Time, Okay. So let's start with the first and easiest way.
• 10:03
  Speaker 5: To make sure your child is a millionaire. And by
• 10:07
  Speaker 5: the way, this is a millionaire, not like necessarily tomorrow,
• 10:11
  Speaker 5: but at some point in their life they will be
• 10:13
  Speaker 5: a million.
• 10:13
  Speaker 7: I think we got to get out of that mindset, right,
• 10:15
  Speaker 7: like success takes time, wealth takes time. Generational wealth obviously
• 10:19
  Speaker 7: takes time, but you have to start somewhere, but it's
• 10:22
  Speaker 7: not going to happen tomorrow. I think people get that exception,
• 10:24
  Speaker 7: like we're so used to saying all right, let's get
• 10:27
  Speaker 7: rich quick. No, let's get wealthy and stay wealthy, funds
• 10:30
  Speaker 7: saying amount of time.
• 10:31
  Speaker 5: So the first, the first thing and the easiest pathway
• 10:36
  Speaker 5: is life insurance. Think that that's something that everybody should have,
• 10:41
  Speaker 5: whether you're a parent or not, but definitely every parent
• 10:44
  Speaker 5: should have for sure. So by now you probably heard
• 10:47
  Speaker 5: life insurance. So I don't think you need to actually
• 10:49
  Speaker 5: have an explanation of what life insurance is. Right, it's
• 10:51
  Speaker 5: pretty self explaratory. It's insurance on your life. And everybody's
• 10:54
  Speaker 5: going to pass away at some point. So when you
• 10:57
  Speaker 5: do pass away, your beneficiaries will get money when you die. Right,
• 11:02
  Speaker 5: you buy a policy, you pay a premium, your beneficiaries
• 11:04
  Speaker 5: get money when you die. That's pretty self explanatory, pretty
• 11:07
  Speaker 5: easy to understand. But there are some things that you
• 11:12
  Speaker 5: need to know about life insurance. So there's different types
• 11:14
  Speaker 5: of life insurance. This is important, Okay, So we're going
• 11:17
  Speaker 5: to talk about three types of insurance, term insurance, universal
• 11:24
  Speaker 5: life insurance, and whole life insurance. They all have different
• 11:29
  Speaker 5: mind you, this is a video that we're going to
• 11:30
  Speaker 5: cover five different topics, so it's not just an insurance video.
• 11:33
  Speaker 5: So we're not going to go for forty minutes into insurance,
• 11:36
  Speaker 5: even though we could. But we have other videos on
• 11:39
  Speaker 5: our YouTube channel about insurance. But this is just the
• 11:41
  Speaker 5: overview to kind of get you on track. So, okay,
• 11:46
  Speaker 5: insurance is vitally important obviously when you're creating generational wealth,
• 11:49
  Speaker 5: because that is a guarantee that your family or your child,
• 11:53
  Speaker 5: whoever you provide beneficiary for will get upon your death right.
• 11:57
  Speaker 5: So term insurance is the easy way to go about it.
• 12:02
  Speaker 5: As far as premium is concerned, right, it's the lowest premium.
• 12:06
  Speaker 5: It lasts a turn. So if you have a twenty
• 12:08
  Speaker 5: year term policy for a million dollars and you're thirty
• 12:11
  Speaker 5: five years old, and that might be thirty dollars a month, right,
• 12:14
  Speaker 5: if you're healthy, that might be thirty dollars a month.
• 12:16
  Speaker 6: So you.
• 12:18
  Speaker 5: The benefit of that is that you're able to get
• 12:22
  Speaker 5: a larger policy for a low premium. Right, because a
• 12:26
  Speaker 5: lot of times. What stoles people from getting large policies
• 12:28
  Speaker 5: is the premium, So that's the benefit. Now you might say, okay, well,
• 12:32
  Speaker 5: why do I need a million dollar life insurance policy
• 12:35
  Speaker 5: if I make one hundred thousand dollars a year?
• 12:37
  Speaker 4: That was really my question.
• 12:39
  Speaker 6: So yeah, rule of.
• 12:40
  Speaker 5: Thumb is that you should get at least ten times
• 12:42
  Speaker 5: your salary, some say twenty because let's think about this rationally.
• 12:48
  Speaker 5: If you make one hundred thousand dollars a year, right
• 12:50
  Speaker 5: after taxes, that's probably around seventy So most people income
• 12:58
  Speaker 5: usually increases over the course of time, but let's say
• 13:00
  Speaker 5: it doesn't. Let's say it just stays at seventy thousand.
• 13:02
  Speaker 5: So now if you have one hundred thousand dollar policy,
• 13:06
  Speaker 5: then your seventy thousand dollars contribution to your family will
• 13:10
  Speaker 5: be done in a year and three months, right, and
• 13:15
  Speaker 5: they still have to live for another eighteen years.
• 13:18
  Speaker 6: Of if you have a baby, or ten years if
• 13:20
  Speaker 6: you have a tenure.
• 13:21
  Speaker 5: Right, So you want to make sure that your income
• 13:25
  Speaker 5: is provided for at least ten years. So if you
• 13:27
  Speaker 5: have a million dollar policy and you make ten one
• 13:30
  Speaker 5: hundred thousand dollars a year, then that million dollar policy
• 13:35
  Speaker 5: now invested into the stock market, you could probably pull
• 13:38
  Speaker 5: around five percent safely seven percent if you want to
• 13:41
  Speaker 5: be a little bit more aggressive. But now you can
• 13:43
  Speaker 5: you can really pull almost almost close to the amount
• 13:47
  Speaker 5: of money that you made as yearly, right from just
• 13:51
  Speaker 5: the growth from the stock market. So that's how you
• 13:53
  Speaker 5: come up with that number. You want to have a
• 13:55
  Speaker 5: larger number death benefit as opposed to just the amount
• 13:59
  Speaker 5: of money that you actually are making per year.
• 14:02
  Speaker 7: And this is one of those I mean literally, that
• 14:03
  Speaker 7: was a conversation that we had we sat at the table.
• 14:06
  Speaker 4: I'm not even thinking of it in terms.
• 14:07
  Speaker 7: I think most people in that age that that twenty
• 14:10
  Speaker 7: three to twenty four to twenty five, they're thinking, like
• 14:12
  Speaker 7: why should I be thinking about when I'm going to die?
• 14:15
  Speaker 4: Right?
• 14:15
  Speaker 7: And it's one of those things that I remember the
• 14:17
  Speaker 7: answer you gave me. You're like, well, everybody's going to die,
• 14:19
  Speaker 7: so you should start thinking about it.
• 14:21
  Speaker 4: And I was like that was harsh.
• 14:22
  Speaker 7: But yeah, you were right, right, Like I don't have
• 14:25
  Speaker 7: a family now, right, I don't have any responsibilities other
• 14:28
  Speaker 7: than myself.
• 14:29
  Speaker 4: This is the perfect time.
• 14:30
  Speaker 7: Number One, I was in the best shape of my life,
• 14:32
  Speaker 7: which is important. I'm sure youre going to talk about that. Right,
• 14:34
  Speaker 7: I was healthy, I didn't smoke, I didn't drink. All
• 14:37
  Speaker 7: these things are positive for people who are trying to
• 14:39
  Speaker 7: give me policies. And when I realized it, right, that
• 14:42
  Speaker 7: million dollar number sounds like a lot, but the way
• 14:45
  Speaker 7: it was, like, Yo, if you do a term like
• 14:47
  Speaker 7: it could be low cost. It could cost you twenty
• 14:49
  Speaker 7: nine or thirty nine or forty nine dollars a month,
• 14:51
  Speaker 7: which I don't think most people understand.
• 14:53
  Speaker 4: Right.
• 14:53
  Speaker 7: They think, if it's a million dollars, I can't afford
• 14:55
  Speaker 7: to have a million dollar policy, But when you break
• 14:58
  Speaker 7: it down, it's like, wait, twenty nine dollars among that's
• 15:00
  Speaker 7: my phone bill is triple that, right, Like these are
• 15:03
  Speaker 7: the things that that mindset and the education that we
• 15:05
  Speaker 7: don't have and we kind of miss.
• 15:07
  Speaker 4: And this is how sometimes wealth is passed without us
• 15:10
  Speaker 4: even know.
• 15:10
  Speaker 5: Or they think that they don't need a million dollar policy. Right,
• 15:13
  Speaker 5: It's like I'm not that much. And this is a
• 15:16
  Speaker 5: common misconception as far as like to say, like I
• 15:18
  Speaker 5: don't need that much or I don't want to leave
• 15:21
  Speaker 5: too much money. You can't be over insured, So there
• 15:26
  Speaker 5: are guidelines and how much insurance that you can actually get.
• 15:29
  Speaker 5: So if you make fifty thousand dollars a year, you
• 15:32
  Speaker 5: cannot get one hundred million dollar life insurance policy, right,
• 15:35
  Speaker 5: you can't get a fifty million dollar life insurance policy.
• 15:37
  Speaker 6: So being at this guidelines.
• 15:39
  Speaker 5: That lets you that lets you know that you should
• 15:42
  Speaker 5: get to the max of what's allowable because there is
• 15:45
  Speaker 5: no such thing as being over and shurt or having
• 15:48
  Speaker 5: too much insurance. The insurance company is not even going
• 15:50
  Speaker 5: to ensure you for things that don't make sense financially,
• 15:53
  Speaker 5: Like if you make fifty thousand dollars a year, you
• 15:55
  Speaker 5: you don't need a hundred million dollars policy. So that
• 15:56
  Speaker 5: lets you know that they in their mind already has
• 16:00
  Speaker 5: a number of what you actually need for your family.
• 16:02
  Speaker 5: That's a great point, So you're not you shouldn't go
• 16:05
  Speaker 5: against something that's already set for you as far as
• 16:07
  Speaker 5: the insurance company, like, don't under insure yourself.
• 16:11
  Speaker 4: And that's a great point.
• 16:13
  Speaker 7: The other part of it is as you start to
• 16:15
  Speaker 7: accumulate more money, then that should change. Right, So like
• 16:18
  Speaker 7: if I started out making sixty thousand, then I made
• 16:22
  Speaker 7: one hundred. Now by the time I'm finished teaching, I'm
• 16:24
  Speaker 7: making one hundred and fifty. Yeah, that needs to multiply
• 16:26
  Speaker 7: by ten. So my policy probably needs to be updated
• 16:30
  Speaker 7: to a point where it now matches the money that
• 16:32
  Speaker 7: I was making because my family is relying on that.
• 16:34
  Speaker 6: Yep.
• 16:35
  Speaker 5: So the pros and comers with term insurance. The pros
• 16:37
  Speaker 5: or that is low costing premium. That's the biggest pro.
• 16:42
  Speaker 5: The con The biggest knock against term insurance is that
• 16:45
  Speaker 5: it's for a term and expire. So if you get
• 16:47
  Speaker 5: twenty year term insurance and you're twenty five years old,
• 16:50
  Speaker 5: it's going to expire expire when you're forty five. Now,
• 16:54
  Speaker 5: most people that are healthy when they're twenty five are
• 16:56
  Speaker 5: still going to be alive when you're forty five. So
• 16:58
  Speaker 5: in that scenario, you would have paid for twenty years.
• 17:01
  Speaker 5: And some people will say, well I have nothing to
• 17:04
  Speaker 5: show for it, like it's just a waste of money.
• 17:05
  Speaker 5: But in any that that's true with any insurance. If
• 17:08
  Speaker 5: you have a car for twenty years and you never
• 17:10
  Speaker 5: get into a car accident, you don't look at it
• 17:12
  Speaker 5: like while I paid car insurance for twenty years, I
• 17:14
  Speaker 5: wasted it. No, you have to have the insurance just
• 17:16
  Speaker 5: in case something happens, or fire insurance or flood insurance.
• 17:20
  Speaker 6: If you think about it, every insurance that you have.
• 17:22
  Speaker 4: You can't get a phone without insurance.
• 17:24
  Speaker 5: Yeah, the point of it is to not ever use it.
• 17:27
  Speaker 5: So life insurance is the only thing that we look
• 17:29
  Speaker 5: at where it's like I have to use it. Right,
• 17:32
  Speaker 5: every other insurance, you just have the insurance and you
• 17:35
  Speaker 5: hope that you never have to use it, and if
• 17:37
  Speaker 5: you do have to use it is there for you.
• 17:39
  Speaker 5: That's how That's how you should look at the life
• 17:40
  Speaker 5: insurance the same way. But it will expire. And now
• 17:45
  Speaker 5: at forty five, if you want to get new insurance,
• 17:48
  Speaker 5: you're going to be you're going to pay a higher
• 17:50
  Speaker 5: premium because you're twenty years older, and then you might
• 17:53
  Speaker 5: not even be able to get the insurance if you
• 17:54
  Speaker 5: have some medical issues or you know, something like that.
• 17:56
  Speaker 5: So that that's some level of negative that can go
• 18:00
  Speaker 5: along with the term insurance. But the alternative de term
• 18:05
  Speaker 5: insurance is what we call permanent insurance. That's insurance that
• 18:09
  Speaker 5: lasts fever. So there's two types of permanent insurance for
• 18:12
  Speaker 5: the most part, Universal and whole life. As I said,
• 18:16
  Speaker 5: there's different types of Universal, but we won't go to
• 18:19
  Speaker 5: in depth because it's not a life insurance class. But
• 18:21
  Speaker 5: you just it's important for you to know whole life
• 18:24
  Speaker 5: insurance is the oldest when it comes to permanent insurance,
• 18:28
  Speaker 5: it's the most conservative. It's guaranteed, how the money. So
• 18:32
  Speaker 5: there's money that grows inside of a policy, which is
• 18:34
  Speaker 5: called cash value. This is important to understand because that's
• 18:38
  Speaker 5: a double edged sword. You have a death benefit, but
• 18:42
  Speaker 5: you as you pay a premium, portion of that premium actually,
• 18:45
  Speaker 5: over the course of time grows into cash that you
• 18:48
  Speaker 5: can actually borrow from. So you might have a million
• 18:52
  Speaker 5: dollar whole life insurance policy and in twenty years you
• 18:56
  Speaker 5: have two hundred thousand dollars of value that's grown inside
• 19:01
  Speaker 5: of that policy. You can borrow from that if you choose,
• 19:05
  Speaker 5: and that's money that you can actually utilize to go
• 19:07
  Speaker 5: for your child as well. You can pay that college tuition,
• 19:09
  Speaker 5: or you can do anything. You can put it down
• 19:12
  Speaker 5: payment for a house, you can start a business. You know,
• 19:13
  Speaker 5: if you need money, then you can take money from
• 19:16
  Speaker 5: a life insurance policy while you're still living. The whole
• 19:20
  Speaker 5: life insurance as far as premium, is the richest, so
• 19:25
  Speaker 5: that's going to be the highest premium on the chart, right.
• 19:28
  Speaker 5: But once again, it's guaranteed, So how the money grows,
• 19:30
  Speaker 5: it's through dividends that the company play pays and through
• 19:34
  Speaker 5: set interest rate. So over the course of time you're
• 19:36
  Speaker 5: probably earn around five percent. If you look at it
• 19:39
  Speaker 5: from a long term perspective, your boy to earn like
• 19:41
  Speaker 5: five percent interest on the money as it's grown inside
• 19:44
  Speaker 5: your account. The alternative to that is universal life insurance.
• 19:48
  Speaker 5: So universal life insurance is like a hybrid where it's
• 19:53
  Speaker 5: whole life in the sense of that it lasts your
• 19:55
  Speaker 5: whole life. But there's different ways how the money can grow.
• 19:58
  Speaker 5: One way the money can grow it's called variable where
• 20:01
  Speaker 5: you can invest in the stock market, and that's variable.
• 20:03
  Speaker 5: It can go twenty five percent one year, or it
• 20:06
  Speaker 5: can be negative eight percent one year. Another way is
• 20:09
  Speaker 5: through an indexed account where that's usually capped in like
• 20:13
  Speaker 5: two percent floor and then twelve percent attract the S
• 20:16
  Speaker 5: and P five hundred. That's the way to invest in
• 20:18
  Speaker 5: the stock market, but you have guardrails on it. And
• 20:21
  Speaker 5: then another way there's a hybrid to this whole thing,
• 20:25
  Speaker 5: which is called guaranteed protection universal life. So this is
• 20:29
  Speaker 5: good for people that say I don't want to invest
• 20:33
  Speaker 5: money in life insurance.
• 20:35
  Speaker 6: But I don't want something that's going to run up.
• 20:37
  Speaker 5: Universal life insurance is pretty much like a lifelong term
• 20:39
  Speaker 5: policy where it lasts your whole life, but that is
• 20:42
  Speaker 5: not designed to build cash value. So you pay a premium,
• 20:45
  Speaker 5: you have a death benefit. That's going to be the
• 20:46
  Speaker 5: lowest costing permanent policy that you can have, So all
• 20:51
  Speaker 5: of those type of policies. The good thing with term
• 20:53
  Speaker 5: insurance also is that you can usually convert it. So
• 20:57
  Speaker 5: if you need a million dollars of insurance, but your
• 21:00
  Speaker 5: budget is two hundred dollars a month that you can
• 21:02
  Speaker 5: pay for insurance, a million dollars, a whole life might
• 21:05
  Speaker 5: cost one thousand dollars a month. A million dollars a
• 21:08
  Speaker 5: term might cost twenty dollars a month. So you're probably
• 21:10
  Speaker 5: not in a position to pay one thousand dollars a month,
• 21:14
  Speaker 5: but you could do more than twenty dollars a month.
• 21:16
  Speaker 5: So what you can do is a combination. You can
• 21:19
  Speaker 5: do two hundred thousand dollars of or one hundred thousand
• 21:23
  Speaker 5: dollars of whole life, right, let's say, and that's one
• 21:25
  Speaker 5: hundred dollars a month, and then you do nine hundred
• 21:28
  Speaker 5: thousand dollars of term insurance.
• 21:30
  Speaker 6: Right.
• 21:30
  Speaker 5: So now this whole package might cost you one thirty
• 21:33
  Speaker 5: a month. Right, So the benefit with that is that
• 21:36
  Speaker 5: you still have some money that you're actually saving. You
• 21:39
  Speaker 5: have some portion of your portfolio, just like investing, you
• 21:41
  Speaker 5: have a portfolio, some portion of your portfolio that's gonna
• 21:44
  Speaker 5: last forever, but then you have another portion that over
• 21:47
  Speaker 5: the court of time, you can transition that to the permanent.
• 21:52
  Speaker 5: So life insurance step one vitally important cooking, easy to
• 21:58
  Speaker 5: do cooking, and that's a that's the easiest way to
• 22:01
  Speaker 5: ensure that your child becomes a millionaire.
• 22:05
  Speaker 7: So there's a strategy here too, right, And we've seen
• 22:07
  Speaker 7: it happen in plenty of communities, and I think we
• 22:09
  Speaker 7: broke it down in like one of our early classes.
• 22:11
  Speaker 4: But insurance is important.
• 22:12
  Speaker 7: But yes, your family for yourself, But what about getting
• 22:16
  Speaker 7: insurance on family members said that might be older than you,
• 22:19
  Speaker 7: Because that might be a strategy too, when we see
• 22:21
  Speaker 7: our elders and people as a family decide that we're
• 22:24
  Speaker 7: going to get a plan knowing that at some point
• 22:27
  Speaker 7: that family members going to pass, and now that can
• 22:29
  Speaker 7: be trickled down to the beneficiaries.
• 22:31
  Speaker 5: Yeah, that's definitely something that's beneficial and helpful. Sometimes it
• 22:34
  Speaker 5: could be a little difficult because you know, if you're older,
• 22:36
  Speaker 5: you might have some medical issues and just being old period,
• 22:40
  Speaker 5: premium is gonna be higher. That's the strategy that can
• 22:43
  Speaker 5: be used also for adults. Okay, so now let's go
• 22:47
  Speaker 5: to number two. You want to start with this the
• 22:50
  Speaker 5: wroth ira.
• 22:52
  Speaker 7: Now this is your will basketet. I want you to
• 22:55
  Speaker 7: cook and then I'm just gonna like chef up with you.
• 22:57
  Speaker 7: So the wroth ira is another one of these strategies
• 23:01
  Speaker 7: that we talk about that can be beneficial for not
• 23:03
  Speaker 7: only for the adult, but for the child. So there's
• 23:06
  Speaker 7: a few types. There's the roth ira uh, and then
• 23:09
  Speaker 7: we have ah.
• 23:12
  Speaker 5: There's a traditional ira and the direct So traditional IRA
• 23:17
  Speaker 5: is you put money into a retirement account and you
• 23:20
  Speaker 5: get a tax deduction for the money that you put in,
• 23:23
  Speaker 5: but it's taxable when you're in retirement.
• 23:25
  Speaker 6: So IRA stands for individual retirement account. That's what it
• 23:27
  Speaker 6: stands for.
• 23:28
  Speaker 4: Right.
• 23:28
  Speaker 6: So people are familiar with four one K that's what
• 23:30
  Speaker 6: your job provides, and.
• 23:31
  Speaker 4: The four O three B if you work in some
• 23:33
  Speaker 4: other same thing.
• 23:34
  Speaker 5: Yeah, but if you want to do it for yourself
• 23:36
  Speaker 5: as a self employed personal just a regular you know, employee,
• 23:41
  Speaker 5: you can do an IRA and IRA is an individual
• 23:44
  Speaker 5: retirement account. So the regular individual retirement account is what
• 23:49
  Speaker 5: we just described, and then there's a rough the wroth IRA.
• 23:53
  Speaker 5: You're able to put money in for your retirement, but
• 23:56
  Speaker 5: you don't get a tax deduction. But the benefit with
• 23:59
  Speaker 5: the rough hiray is that the money's tax free when
• 24:01
  Speaker 5: you take the money out. So one of the good
• 24:04
  Speaker 5: things with being an entrepreneurs that you can employ your child.
• 24:07
  Speaker 5: We talked about this before, yep. But even if you
• 24:10
  Speaker 5: don't employ your child, you can set up a rough
• 24:14
  Speaker 5: IRA for your child as long as your child is working.
• 24:18
  Speaker 5: So this year, how much money can you pay your child?
• 24:22
  Speaker 6: This year?
• 24:22
  Speaker 7: I think we got up to fourteen thousand, three hundred
• 24:26
  Speaker 7: fourteen thousand, three hundred, and we get this question a lot,
• 24:30
  Speaker 7: a lot, And yes, I'm glad that people are asking
• 24:31
  Speaker 7: the question of like can I The child has to
• 24:34
  Speaker 7: be of working age. So if you have a two
• 24:36
  Speaker 7: year old that is not classified as a working age,
• 24:39
  Speaker 7: I believe the working age is between seven to seventeen,
• 24:41
  Speaker 7: and they have to be doing something that's functional. We
• 24:44
  Speaker 7: work in a platform that actually has functioned, right So
• 24:48
  Speaker 7: for my son, right when we actually record, he'll come down,
• 24:52
  Speaker 7: he'll set up, he'll sweep, he'll clean the area. That
• 24:55
  Speaker 7: is an actual functional duty that he is doing to
• 24:59
  Speaker 7: help the business. So if you don't have a functional
• 25:02
  Speaker 7: activity or a purpose for it, then it makes it tougher.
• 25:05
  Speaker 7: But it has to be between the ages of seven
• 25:07
  Speaker 7: to seventeen. You can't have your three year old performing
• 25:11
  Speaker 7: function or maybe you can' maybe you got a super child,
• 25:13
  Speaker 7: but that's the age range.
• 25:15
  Speaker 5: So the benefit okay, So the benefit with paying your
• 25:20
  Speaker 5: child is that it's a tax deduction for you as
• 25:24
  Speaker 5: an entrepreneur for your company, and it's tax free income
• 25:29
  Speaker 5: to your child up to that amount. So if you
• 25:31
  Speaker 5: pay your child ten thousand dollars, right instead of giving
• 25:34
  Speaker 5: them allowance, right Because now when you give somebody allowance,
• 25:38
  Speaker 5: that's after tax money. You've already paid taxes on that money.
• 25:41
  Speaker 5: So if you've given them allowance to buy sneakers or
• 25:43
  Speaker 5: to you know, do whatever, you don't get any benefit
• 25:46
  Speaker 5: for that. But as an entrepreneur, if you can give
• 25:48
  Speaker 5: them ten thousand dollars or five thousand or whatever you're
• 25:51
  Speaker 5: giving them and it's salary, now you get a tax deduction. Right,
• 25:57
  Speaker 5: you save money on taxes and it's fee they don't
• 26:00
  Speaker 5: they don't have to pay taxes on that income. So
• 26:02
  Speaker 5: that's beneficial for any entrepreneur. Now, where the raw firay
• 26:08
  Speaker 5: thing comes into play is that you can contribute to
• 26:15
  Speaker 5: a raw fira or an ira, but we'll talk about
• 26:17
  Speaker 5: the royal fira for now, which you can contribute to
• 26:19
  Speaker 5: a row firara for your child that's working up to
• 26:23
  Speaker 5: your amount that they're actually getting paid. So if they
• 26:26
  Speaker 5: if they have a regular job, they work in CBS,
• 26:28
  Speaker 5: and they got paid five thousand dollars, then they can
• 26:31
  Speaker 5: have a raw fira up to five thousand dollars if
• 26:35
  Speaker 5: you pay them. If you are an entrepreneur, you pay
• 26:39
  Speaker 5: them five thousand dollars, then they can contribute up to
• 26:42
  Speaker 5: five thousand dollars. Right, So the limit for this year
• 26:45
  Speaker 5: is UH seven thousand, seven thousand, that's the most right.
• 26:49
  Speaker 5: So Okay, this has beneficial for people to know and
• 26:53
  Speaker 5: understand because once again it's just relatively short periods of
• 26:57
  Speaker 5: time that could lead to large moneys over the course
• 26:59
  Speaker 5: of time. So if you are an entrepreneur, right and
• 27:03
  Speaker 5: you have a business in mind, you you can be
• 27:06
  Speaker 5: an entrepreneur and still have a job. Also, but if
• 27:08
  Speaker 5: you if you're an entrepreneur, you have a business. Let's
• 27:11
  Speaker 5: say that you you you paid your child seven thousand
• 27:14
  Speaker 5: dollars right for the year. Now you can that's a
• 27:20
  Speaker 5: tax deduction. You're going to save money seven thousand dollars
• 27:22
  Speaker 5: only taxis Now you can take that seven thousand dollars
• 27:26
  Speaker 5: and put it into a rough IRA. Now, the benefit
• 27:31
  Speaker 5: with that is that now the money is actually invested.
• 27:34
  Speaker 5: You're invested in the stock market. So let's just use
• 27:37
  Speaker 5: an example. Usually working age is around twelve, so if
• 27:46
  Speaker 5: we picked the ages from twelve to seventeen, to seventeen
• 27:49
  Speaker 5: will be probably a last year in high school and
• 27:52
  Speaker 5: then you know, after that point they're put there an
• 27:54
  Speaker 5: adult eighteen years old.
• 27:55
  Speaker 6: So you go from twelve to seventeen, which is six years.
• 28:00
  Speaker 5: Right, Let's say that you put seven thousand dollars into
• 28:04
  Speaker 5: a row IRA every year for a child. Mind you
• 28:07
  Speaker 5: you're getting a tax deduction for this money. Anyway, you
• 28:09
  Speaker 5: put seven thousand dollars away every year for six years, right,
• 28:15
  Speaker 5: and let's say you invested it in QQQ.
• 28:19
  Speaker 6: Right.
• 28:20
  Speaker 5: Historically, over the last fifteen twenty years, I think it's
• 28:23
  Speaker 5: average over ten percent, so we can use ten percent
• 28:27
  Speaker 5: as something that should possibly be a realistic number.
• 28:31
  Speaker 4: That might and that might be conservative at this point.
• 28:33
  Speaker 5: So let's say you invested that money ten percent a
• 28:35
  Speaker 5: year untouched. Because the thing with the IRA is that
• 28:41
  Speaker 5: it's for your retirement, right, so when they retire, they'll
• 28:46
  Speaker 5: have three point five million dollars. So the benefit with
• 28:50
  Speaker 5: that is that you already made your child a multi
• 28:56
  Speaker 5: millionaire in their retirement. Now to pushback for someone say okay,
• 29:00
  Speaker 5: well the child has to wait till sixty years old
• 29:03
  Speaker 5: to get it. Well, my question is if somebody had
• 29:07
  Speaker 5: a million dollars, two million, or three million dollars for
• 29:09
  Speaker 5: you right now and said, and you're forty, and said
• 29:15
  Speaker 5: at sixty you will you will get this money. Would
• 29:18
  Speaker 5: you be mad and you did nothing for it a
• 29:21
  Speaker 5: couple of years of work when you was a child.
• 29:23
  Speaker 5: Would you be mad at your grandparent for doing that?
• 29:27
  Speaker 5: Or would you look forward to the opportunity? Mind you, you
• 29:31
  Speaker 5: can take money from a row fire eight early in
• 29:32
  Speaker 5: the net. There's some penalties that you have to pay,
• 29:35
  Speaker 5: but you don't have to wait till your sixty.
• 29:37
  Speaker 7: You don't have to wait till you sixty and again
• 29:39
  Speaker 7: this is a conservative number, right, so we're talking about
• 29:41
  Speaker 7: ten percent. There's years obviously we saw over the past
• 29:45
  Speaker 7: three where the QQQ was trashed, the technology sector has
• 29:49
  Speaker 7: gone up twenty five ers.
• 29:51
  Speaker 4: Ernest, what's up?
• 29:52
  Speaker 7: You ever walk into a small business and everything just
• 29:55
  Speaker 7: works like the checkout is fast, the seats of digital
• 29:58
  Speaker 7: tipping is a breeze, and you're out the door before
• 30:01
  Speaker 7: the line even builds odds are they're using Square? We
• 30:06
  Speaker 7: love supporting businesses that run on Square because it just
• 30:08
  Speaker 7: feels seamless. Whether it's a local coffee shop, a vendor
• 30:11
  Speaker 7: at a pop up market, or even one of our
• 30:14
  Speaker 7: merch partners. Square makes it easy for them to take payments,
• 30:18
  Speaker 7: manage inventory, and run their business with confidence, all from
• 30:21
  Speaker 7: one simple system. If you're a business owner or even
• 30:25
  Speaker 7: just thinking about launching something soon, Square is hands down
• 30:29
  Speaker 7: one of the best tools out there to help you start, run,
• 30:32
  Speaker 7: and grow. It's not just about payments, it's about giving
• 30:35
  Speaker 7: you time back so you can focus on.
• 30:37
  Speaker 4: What matters most ready.
• 30:39
  Speaker 7: To see how Square can transform your business, visit Square
• 30:42
  Speaker 7: dot com, backslash, go, backslash eyl to learn more. That's
• 30:47
  Speaker 7: Square dot com backslash, Go backslash, eyl, don't wait, don't hesitate.
• 30:52
  Speaker 7: Let Square handle the back end so you can keep
• 30:55
  Speaker 7: pushing your vision forward. This episode is brought to you
• 31:01
  Speaker 7: by P and C Bank. A lot of people think
• 31:03
  Speaker 7: podcasts about work are boring, and sure they definitely can be,
• 31:08
  Speaker 7: but understanding a professionals routine shows us how they achieve
• 31:11
  Speaker 7: their success little by little, day after day. It's like
• 31:15
  Speaker 7: banking with P and C Bank. It might seem boring
• 31:18
  Speaker 7: the safe plan and make calculated decisions with your bank,
• 31:21
  Speaker 7: but keeping your money boring is what helps you live
• 31:24
  Speaker 7: a more happily fulfilled life. P and C Bank Brilliantly
• 31:28
  Speaker 7: Boring since eighteen sixty five. Brilliantly Boring since eighteen sixty
• 31:33
  Speaker 7: five is a service mark of the PNC Financial Service Group, Inc.
• 31:36
  Speaker 7: P and C Bank National Association Member FDIC.
• 31:42
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 31:45
  Speaker 1: in Massachusetts. An MS thirteen gang member from El Salvador
• 31:49
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 31:53
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 31:57
  Speaker 1: some of the heinous migrant criminals caught because of President
• 32:01
  Speaker 1: Donald J.
• 32:02
  Speaker 2: Trump's leadership. I'm Christy Noman, the.
• 32:04
  Speaker 1: United States Secretary of Homeland Security. Under President Trump, attempted
• 32:09
  Speaker 1: illegal border crossings are at the lowest levels ever recorded,
• 32:13
  Speaker 1: and over one hundred thousand illegal aliens.
• 32:15
  Speaker 2: Have been arrested.
• 32:16
  Speaker 1: If you are here illegally, your next you will be
• 32:20
  Speaker 1: fine nearly one thousand dollars a day. Imprisoned and deported,
• 32:24
  Speaker 1: you will never return. But if you register using our
• 32:27
  Speaker 1: CBP home app and leave now, you could be allowed
• 32:31
  Speaker 1: to return legally.
• 32:32
  Speaker 2: Do what's right. Leave now.
• 32:35
  Speaker 1: Under President Trump, America's laws, border and families will be protected.
• 32:39
  Speaker 3: Sponsored by the United States Department of Homeland Security.
• 32:42
  Speaker 7: Right is going up to twenty six percent, and then
• 32:44
  Speaker 7: it's going down to twelve. If we just take those
• 32:46
  Speaker 7: averages over the past five years, you're talking about way
• 32:49
  Speaker 7: more than ten percent. And the one thing that we
• 32:51
  Speaker 7: know about the stock market is that it is going
• 32:54
  Speaker 7: to appreciate eighty two percent of the time. The SMP
• 32:56
  Speaker 7: has increased over the course of the market's history, and
• 33:00
  Speaker 7: so ten percent is a conservative number. So you're saying sixty,
• 33:05
  Speaker 7: but that number could hit three million by fifty, right,
• 33:08
  Speaker 7: And so it's all about deferring the gratification, right, just
• 33:12
  Speaker 7: knowing that it's there and letting it compound, like it
• 33:16
  Speaker 7: is the eighth wonder of the world. For a reason
• 33:18
  Speaker 7: that money doesn't get touched, you'll be a millionaire. This
• 33:21
  Speaker 7: is not something that's hypothetical. At that number, at a
• 33:24
  Speaker 7: conservative ten percent, that's what it's going to average.
• 33:27
  Speaker 6: And it's one of these things that it's not even.
• 33:30
  Speaker 5: It's just basic math, right, This is that's like life
• 33:37
  Speaker 5: assurance is the easiest way, but this is another damn
• 33:41
  Speaker 5: guaranteed way to make your child a multi millionaire. Now,
• 33:45
  Speaker 5: once begin we never said when we said make your
• 33:48
  Speaker 5: child a millionaire. We never said that there's gonna be
• 33:49
  Speaker 5: a millionaire tomorrow. But once again, we talked about generational wealth.
• 33:53
  Speaker 5: So the whole point of it is that the child
• 33:57
  Speaker 5: should be equipped to be earning money, to be doing
• 33:59
  Speaker 5: things as an adult.
• 34:00
  Speaker 6: Right. Everything that they've given is.
• 34:04
  Speaker 5: Extra add ons for them, right, So this isn't like
• 34:07
  Speaker 5: the only thing that they should be like relying on
• 34:10
  Speaker 5: as a twenty five year old. But like I said,
• 34:13
  Speaker 5: if you can, one of the biggest problems that we
• 34:16
  Speaker 5: have in a society is retirement. And they're already talking
• 34:20
  Speaker 5: about cutbacks on Social Security. So if you don't have
• 34:25
  Speaker 5: to worry about retirement, how much more free? I know
• 34:27
  Speaker 5: people that take jobs just for retirement benefits. Yep, you
• 34:31
  Speaker 5: work a job for thirty years just because it has
• 34:34
  Speaker 5: a good pension.
• 34:35
  Speaker 7: People will retire and go back to get a part
• 34:37
  Speaker 7: time job because they need the insurance.
• 34:39
  Speaker 6: Yeah.
• 34:40
  Speaker 4: Sure.
• 34:41
  Speaker 7: And here's the thing, right, like, yeah, fifty sounds if
• 34:43
  Speaker 7: you're sitting in your twenties and your thirties, Like, sixty
• 34:46
  Speaker 7: sounds like a long wait, Like we just I just
• 34:48
  Speaker 7: turned forty three years ago.
• 34:49
  Speaker 4: You just turned forty a year ago.
• 34:52
  Speaker 7: At that same rate, you're still at that ten percent, right,
• 34:55
  Speaker 7: just from them five years from twelve to seventeen, that
• 34:57
  Speaker 7: ten percent compounded turns to nearly six hundred thousand by forty. Yeah, Like,
• 35:03
  Speaker 7: what did you get a six hundred thousand dollars take
• 35:05
  Speaker 7: in forty? I might have missed it. No, I wasn't
• 35:07
  Speaker 7: sitting there for you.
• 35:07
  Speaker 5: So yeah, on five hundred and thirty one thousand dollars
• 35:09
  Speaker 5: bout forty. So like I said, you don't. It's not
• 35:12
  Speaker 5: like a locked up and a trust. You can take
• 35:15
  Speaker 5: money out of the IRA whenever you want you'll pay
• 35:17
  Speaker 5: you'll pay an early penalty if you take it out
• 35:21
  Speaker 5: before your retirement. That's important to notice. But if you
• 35:24
  Speaker 5: need money, like let's say you've got a brilliant idea
• 35:26
  Speaker 5: you want to start a business, you can take the
• 35:28
  Speaker 5: money out. It's never been taxed before, so you pay tax.
• 35:31
  Speaker 5: You'll pay taxes on it, you'll pay a penalty tax.
• 35:33
  Speaker 5: But ideally it's better to wait because you'll pay no tax.
• 35:38
  Speaker 5: And like I said, keep in mind that money at
• 35:40
  Speaker 5: sixty three point five million is tax free. So when
• 35:44
  Speaker 5: you get your four one k, you're paying state and
• 35:47
  Speaker 5: federal taxes on it. So your million dollars is really
• 35:49
  Speaker 5: six hundred thousand dollars. This is three point five million
• 35:53
  Speaker 5: dollars tax free money. So I mean, that's just that's
• 35:57
  Speaker 5: just the trim minut. And like I said, for a
• 35:58
  Speaker 5: very short period of time, you just you paid seven
• 36:01
  Speaker 5: thousand dollars a year for six years, and that that
• 36:03
  Speaker 5: could be two thousand. Of course it's going to be
• 36:05
  Speaker 5: a lower, but you know, you could use the calculator
• 36:07
  Speaker 5: to see, Okay, if I put a thousand dollars and
• 36:09
  Speaker 5: if I put two thousand dollars, and if I put
• 36:10
  Speaker 5: fifteen hundred dollars in right, what is that equal? But
• 36:13
  Speaker 5: the bottom line is that relatively small amounts of money
• 36:15
  Speaker 5: in a short, relatively short period of time equals huge
• 36:19
  Speaker 5: amounts of money later on in lifeact.
• 36:23
  Speaker 4: This is a fact.
• 36:24
  Speaker 6: So that's another way.
• 36:25
  Speaker 4: So we got the life insurance, we got the IRA.
• 36:28
  Speaker 7: This is one of my favorite ones because it's something
• 36:30
  Speaker 7: that we've actually been practicing, and that is creating an
• 36:33
  Speaker 7: up my account for your child, right and UPMA stands
• 36:35
  Speaker 7: for a uniform transferred to minus act and this allows
• 36:39
  Speaker 7: you to hold access in your child's name up until
• 36:41
  Speaker 7: eighteen to twenty one. And this is important, right, Like
• 36:44
  Speaker 7: we talk about investing all the time on market Mondays,
• 36:47
  Speaker 7: we talk about it here on Eolisia, and we're doing
• 36:50
  Speaker 7: it for ourselves, right, And that's all great, But having
• 36:53
  Speaker 7: that asset for a longer term. Right, So I'm forty
• 36:57
  Speaker 7: three years old, right, if I have at my hew
• 37:00
  Speaker 7: for my son and my daughter, right, that account was
• 37:03
  Speaker 7: open when he was seven and when she was ten.
• 37:06
  Speaker 4: Right.
• 37:06
  Speaker 7: I just told you about the history of the market.
• 37:08
  Speaker 7: Eighty two percent of the time it has seen appreciation.
• 37:10
  Speaker 7: If they start if I started investing at seven, what
• 37:13
  Speaker 7: would my account look like now, knowing what I know,
• 37:15
  Speaker 7: they have the advantage of knowing what I know, plus
• 37:17
  Speaker 7: having the time that's factored into their lives.
• 37:21
  Speaker 4: Right.
• 37:21
  Speaker 7: So we're talking about somebody that's investments in seven, what
• 37:24
  Speaker 7: does that look like at forty?
• 37:25
  Speaker 4: What does that look like at fifty?
• 37:27
  Speaker 7: Now the difference between that and UGMA, which we're talking about,
• 37:31
  Speaker 7: is that you can have different type of assets. Right,
• 37:34
  Speaker 7: So we're talking about cash, we're talking about real estate.
• 37:36
  Speaker 7: We're talking about stocks that can all be held into account.
• 37:39
  Speaker 7: What does that mean? That means that you can manage
• 37:41
  Speaker 7: that account. Again, educate your kid during the process. And
• 37:44
  Speaker 7: so this is one of those things when we're talking about, Hey,
• 37:47
  Speaker 7: our kids know what is hot, right, So when Microsoft
• 37:50
  Speaker 7: is creating a product, or Metas coming out with a product,
• 37:53
  Speaker 7: or TikTok is the hot thing. Or I remember a
• 37:55
  Speaker 7: few years when we were talking about Rodblocks when that
• 37:57
  Speaker 7: became a public trading company. These are now conversations that
• 38:00
  Speaker 7: we can have with our children. Educate them about what
• 38:03
  Speaker 7: the publicly traded company is, but also allow them if
• 38:07
  Speaker 7: they want to to.
• 38:08
  Speaker 4: Invest over the long term.
• 38:10
  Speaker 7: Now, the beautiful thing is that at eighteen, they now
• 38:13
  Speaker 7: become owners of that account. So hopefully they've been practicing
• 38:17
  Speaker 7: with it, right, They've been watching you invest, They've been
• 38:20
  Speaker 7: watching transactions happen, they've been watching appreciation. I know for
• 38:23
  Speaker 7: the past couple of weeks we've seen something depreciation. But
• 38:26
  Speaker 7: that's why we're talking about long term holds. And so
• 38:29
  Speaker 7: I know when we talk about two tech two index
• 38:31
  Speaker 7: and says that this is why. Right, if we have
• 38:33
  Speaker 7: two tech companies and we have two indexes that track
• 38:36
  Speaker 7: the market overall, that's a great basis to start for
• 38:40
  Speaker 7: a child to have a long term investment. If we
• 38:43
  Speaker 7: want in great invest in great companies, well we have
• 38:45
  Speaker 7: that ability to do that as well. And so what
• 38:49
  Speaker 7: I've done is like I'll start to match. Right, if
• 38:51
  Speaker 7: I see a good company at a good price in
• 38:54
  Speaker 7: video which hit one hundred, not only am I adding
• 38:56
  Speaker 7: that into my portfolio, but I'm adding into my child's portfolio.
• 38:59
  Speaker 7: And the fact that I have too, when they can
• 39:00
  Speaker 7: mirror it, it makes it even better because they're watching
• 39:03
  Speaker 7: this appreciation go. The other part is the UTMA account.
• 39:08
  Speaker 7: Now there's some differences here, right. You can put real estate,
• 39:12
  Speaker 7: you can put jewelry, you can put commodities inside your UGMA.
• 39:16
  Speaker 4: Your UTMA, you can only this is key.
• 39:18
  Speaker 7: You can only have cash, stocks, bonds, mutual funds, and ets.
• 39:22
  Speaker 4: That's the biggest difference.
• 39:24
  Speaker 7: The UTMA allows more flexibility where you can have more
• 39:26
  Speaker 7: different types of assets. And I know some people have
• 39:29
  Speaker 7: collectibles that can be also passed down. At twenty one
• 39:32
  Speaker 7: or eighteen, they now controlling This is no longer something
• 39:35
  Speaker 7: that you can manage and is handed over to them.
• 39:38
  Speaker 7: Hopefully you've given them enough guidance, You've given them enough education,
• 39:42
  Speaker 7: enough resources to make positive decisions and good decisions inside
• 39:45
  Speaker 7: that account. Because again they've had it for ten years.
• 39:47
  Speaker 7: Like I said, my son was seven when he started.
• 39:49
  Speaker 7: By the time he's eighteen, i'll be eleven years for him.
• 39:52
  Speaker 7: That has hopefully in it thus far as appreciated pretty nicely.
• 39:56
  Speaker 7: Now at eighteen, if they've decided they want to start
• 39:59
  Speaker 7: a business, this now becomes the seed for their business.
• 40:02
  Speaker 7: Right If they decide that they want to go to college,
• 40:05
  Speaker 7: here startup money now that.
• 40:07
  Speaker 4: They can pay towards tuition or whatever their endeavor is.
• 40:10
  Speaker 7: If they decide that, hey, I want to take a
• 40:12
  Speaker 7: year of dad, and I want to work for you,
• 40:13
  Speaker 7: and I want to use this to invest in my
• 40:15
  Speaker 7: own form of real estate.
• 40:16
  Speaker 4: They can do that.
• 40:17
  Speaker 7: It allows your kids flexibility to have decision making power
• 40:21
  Speaker 7: at a young age that can affect them for.
• 40:24
  Speaker 4: The long term.
• 40:25
  Speaker 7: So those are two accounts that if you're adult and
• 40:27
  Speaker 7: if you're watching market mondays and you're trading now and
• 40:30
  Speaker 7: this is easy to do, right, you go to your brokerage. Right,
• 40:33
  Speaker 7: there's a tab it says UMA or UGMA. You can
• 40:36
  Speaker 7: open the account. You can start deposit money to into
• 40:38
  Speaker 7: that account now, and you can invest right. You can
• 40:41
  Speaker 7: invest like I said, in indexes, you can invest in ETFs,
• 40:44
  Speaker 7: you can invest in equities. These things are how you
• 40:48
  Speaker 7: build wealth. We talk about generational wealth. Well, somebody has
• 40:51
  Speaker 7: to do it right. So if you're doing it now,
• 40:53
  Speaker 7: you might as well create the habits that can be
• 40:55
  Speaker 7: sustained and passed down for your next generation. Those are
• 40:58
  Speaker 7: two positive ways to make sure so that you have generational.
• 41:01
  Speaker 6: Well, that's a fact.
• 41:02
  Speaker 5: And then there is so we do want to talk
• 41:04
  Speaker 5: about something that Okay, depending on state law, you have
• 41:08
  Speaker 5: to the child has access at eighteen or twenty one.
• 41:12
  Speaker 5: But so how to make your child a millionaire? This
• 41:15
  Speaker 5: is where this comes into play. Adding a trust, putting
• 41:18
  Speaker 5: the UTMA in a trust account, so you can override
• 41:22
  Speaker 5: that by having a trust account, right, because you're probably
• 41:25
  Speaker 5: not going to have a million dollars by eighteen. But
• 41:28
  Speaker 5: that same rule applied for the raw FIRA can be
• 41:31
  Speaker 5: applied for the UTMA right with no restrictions as far
• 41:35
  Speaker 5: as when you can actually take the money. But now
• 41:37
  Speaker 5: you can actually set stipulations and restrictions based on how
• 41:42
  Speaker 5: you want based on a trust. So, once again, for
• 41:45
  Speaker 5: the context of this video, we're not going to go
• 41:49
  Speaker 5: into deep detailed about trust because that could be a
• 41:51
  Speaker 5: video within itself. But there are some different types of
• 41:53
  Speaker 5: trust that you should be aware of with this too.
• 41:55
  Speaker 5: In particular that are most prevalent when we're talking about
• 41:59
  Speaker 5: these type of situations is yeah, revocable trust, which is
• 42:02
  Speaker 5: also known as a living trust, And the reason why
• 42:04
  Speaker 5: it's called revocable is that you can make changes throughout
• 42:07
  Speaker 5: the cost of your life, right, and then there's an
• 42:10
  Speaker 5: irrevocable trust, which hence the name is pretty much you
• 42:15
  Speaker 5: can't change over the course of your life, right, So
• 42:17
  Speaker 5: one is kind of set in stone and one is
• 42:22
  Speaker 5: more flexible. But the benefit with the trust period is
• 42:26
  Speaker 5: that it's asset protection as far as it takes the
• 42:30
  Speaker 5: asset out of everybody's name, right, so it's out of
• 42:33
  Speaker 5: your name, out of your child name. The trust. The
• 42:35
  Speaker 5: trust is the owner of the situation, and that's great
• 42:38
  Speaker 5: for asset protection. We talk about a state planning for sure,
• 42:42
  Speaker 5: but this for this conversation, we'll focus on rules and
• 42:47
  Speaker 5: stipulations as far as you know, setting parameters so one
• 42:53
  Speaker 5: of the you can go back to the regular One
• 42:55
  Speaker 5: of the things about the UTMA that people are concerned
• 42:58
  Speaker 5: about it is like, okay, well if I save us
• 43:00
  Speaker 5: money and I put this and I give my child
• 43:02
  Speaker 5: this money, well they're not gonna be ready for the
• 43:05
  Speaker 5: eighteen and most eighteen year olds are not responsible enough
• 43:12
  Speaker 5: to handle six figures or seven figures. That's kind of
• 43:15
  Speaker 5: even twenty one year old. Most twenty one year olds
• 43:18
  Speaker 5: haven't have enough information, haven't had enough life experience, so
• 43:22
  Speaker 5: it could lead to making bad decisions. If wasting the money,
• 43:28
  Speaker 5: that defeats the whole purpose. So having it in a
• 43:31
  Speaker 5: trust is beneficial because you get to dictate when and
• 43:37
  Speaker 5: how that money is dispersed.
• 43:39
  Speaker 6: So you can say, okay, well.
• 43:41
  Speaker 5: The money I have a let's say you have two
• 43:44
  Speaker 5: hundred thousand dollars in the first fifty thousand will be
• 43:49
  Speaker 5: given to my child when they complete college.
• 43:53
  Speaker 6: But they have to complete college.
• 43:54
  Speaker 5: So if you don't complete college and you don't get
• 43:56
  Speaker 5: the fifty thousands, the next fifty thousand will be granted
• 43:59
  Speaker 5: upon on marriage. Right, you don't get married, you're not
• 44:03
  Speaker 5: getting fifty thousand. Or there's a provision that they can
• 44:06
  Speaker 5: take fifty thousand out of the trust at any time
• 44:09
  Speaker 5: that they're an adult if they want to start a business,
• 44:12
  Speaker 5: but the business plan has to be reviewed by my accountant,
• 44:16
  Speaker 5: and the accountant has to say that it's a legitimate
• 44:18
  Speaker 5: business plan, and then they could get fifty thousand dollars
• 44:20
  Speaker 5: that way. Meanwhile, this whole time, the money is still
• 44:22
  Speaker 5: growing because we're still invested over the course of time.
• 44:25
  Speaker 5: So that's something that a lot of parents find attractive
• 44:28
  Speaker 5: because it provides you a certain level of authority still
• 44:36
  Speaker 5: over the money, the access to the money, what they're
• 44:41
  Speaker 5: using the money for, you could be as detailed as
• 44:45
  Speaker 5: as you want to be.
• 44:46
  Speaker 4: Yeah, that's an important fact.
• 44:47
  Speaker 7: Right, This is almost like putting the bumpers up right,
• 44:50
  Speaker 7: So when we're talking about generations, yes, if you've taken
• 44:53
  Speaker 7: these steps, yes, You're not going to be a millionaire
• 44:55
  Speaker 7: at eighteen or twenty one, but the steps are now
• 44:59
  Speaker 7: being prod for you to get to that level.
• 45:01
  Speaker 4: The problem is a lot of times.
• 45:03
  Speaker 7: We see when we get money and we don't know
• 45:05
  Speaker 7: what to do with it, we tend to spend it
• 45:07
  Speaker 7: and be frivolous. This is a system that it now
• 45:09
  Speaker 7: has put up the bumpers, right, So you still have
• 45:11
  Speaker 7: to work towards something in order to have that money, right,
• 45:15
  Speaker 7: which is a huge incentive. I could imagine being eighteen
• 45:18
  Speaker 7: years old and knowing that if I complete this task
• 45:21
  Speaker 7: or if I've done this, that there is going to
• 45:23
  Speaker 7: be that waiting for me. I mean, this is a
• 45:27
  Speaker 7: game that the wealthier plan that we haven't had access to.
• 45:29
  Speaker 4: But fortunately enough that is changing.
• 45:33
  Speaker 7: So these are parameters, right, This is the key to
• 45:35
  Speaker 7: sustainable wealth. Putting parameters in place that make sure that
• 45:39
  Speaker 7: you won't ruin this, right. We want to make sure
• 45:41
  Speaker 7: that this is sustained.
• 45:42
  Speaker 6: Yeah, so that's something that's vitally important to take.
• 45:47
  Speaker 5: And you can invest the money, like you said, you
• 45:49
  Speaker 5: can invest the money in stocks, you can invest the
• 45:50
  Speaker 5: money in ETFs, in deck funds, all that type of
• 45:53
  Speaker 5: they even bitcoin through the ibit ye, So you know,
• 45:58
  Speaker 5: you have different ways you can invest in money. So
• 46:01
  Speaker 5: that's the third way that you can make your child
• 46:05
  Speaker 5: a millionaire.
• 46:07
  Speaker 7: Now number four, This one feels like it's the obvious
• 46:11
  Speaker 7: almost right, if we look at how wealth is built
• 46:13
  Speaker 7: throughout America, is built through entrepreneurs creating business and having
• 46:16
  Speaker 7: stock in that business.
• 46:18
  Speaker 4: The other way is only land own in real estate. Right,
• 46:21
  Speaker 4: owning real estate.
• 46:22
  Speaker 7: And owning it and having it in a way that
• 46:25
  Speaker 7: in a manner that now becomes beneficial for your children
• 46:28
  Speaker 7: is number four for sure. But it feels like it's
• 46:30
  Speaker 7: the obvious way that most people build wealth in our country.
• 46:34
  Speaker 7: And we've seen that over the history, right from reconstruction
• 46:39
  Speaker 7: to the Industrial Revolution to post war to Redline, and
• 46:42
  Speaker 7: we've seen appreciation in homes over time being passed down
• 46:45
  Speaker 7: to families has created wealth not only for the owner
• 46:49
  Speaker 7: of the home, but for generations of families thereafter.
• 46:53
  Speaker 4: So let's talk about some ways that can better fit
• 46:55
  Speaker 4: your children.
• 46:55
  Speaker 5: Yeah, real estate, So I mean real estate is pret
• 46:57
  Speaker 5: self explanatory as far as if you're a home owner
• 47:00
  Speaker 5: or if you're a real estate investor, but you can
• 47:04
  Speaker 5: going back to the trust, you can you can buy
• 47:06
  Speaker 5: real estate and a trust and have your child as
• 47:11
  Speaker 5: the beneficiary of the trust. So you can buy real
• 47:13
  Speaker 5: estate in both as the purposes for your child right.
• 47:19
  Speaker 6: In the trust. And once again you can utilize.
• 47:22
  Speaker 5: That as leverage later on to a have them own
• 47:27
  Speaker 5: the property outright or they can take over. As far
• 47:32
  Speaker 5: as rental income, so like let's say you have a
• 47:35
  Speaker 5: real estate property that gives you two thousand dollars a
• 47:37
  Speaker 5: month rental income. Right, you can say, okay, when my
• 47:41
  Speaker 5: child turns twenty five, they will be the recipient of
• 47:47
  Speaker 5: that income, but they have to be the landlord on
• 47:52
  Speaker 5: the property and these are the list of things they
• 47:54
  Speaker 5: need to check on the tenants. Now you're actually helping
• 47:56
  Speaker 5: the child learn real estate in real time because it's like, okay,
• 47:59
  Speaker 5: now this is actually out for you. So you are
• 48:02
  Speaker 5: going to receive the rent or part of the rent.
• 48:05
  Speaker 5: But part of the stipulation for you receiving part of
• 48:08
  Speaker 5: the rent is that you need to collect rent. You
• 48:11
  Speaker 5: need to talk to the tenants once a month, you
• 48:13
  Speaker 5: need to check on the property once a month. So
• 48:15
  Speaker 5: now you're actually grooming the child and be a property
• 48:18
  Speaker 5: manager and to learn about real estate in real time.
• 48:21
  Speaker 5: You're forcing them as opposed to them just collecting rent,
• 48:26
  Speaker 5: you know, and not knowing anything. That's not really helpful.
• 48:28
  Speaker 5: Like the more you learn, the better you'll be. So
• 48:31
  Speaker 5: structuring your real estate purchases, especially for real estate investors,
• 48:37
  Speaker 5: having you know a property to how many you want
• 48:41
  Speaker 5: in that trust, for the child to actually be the
• 48:45
  Speaker 5: owner and set point or to be the beneficiary as
• 48:48
  Speaker 5: far as rent or have some level of control, that's helpful.
• 48:52
  Speaker 6: It's beneficial as well.
• 48:53
  Speaker 5: So that's another way as far as you grow money
• 48:55
  Speaker 5: with stocks, but you also grow money with real estate,
• 48:58
  Speaker 5: and you can buy property. You can actually buy a
• 49:01
  Speaker 5: property in the up account as well, that's what I'm saying. Yeah,
• 49:03
  Speaker 5: but you could buy a property for your child, just
• 49:06
  Speaker 5: like you could buy stocks for your child.
• 49:07
  Speaker 7: Yeah. And that's the beauty of the UPMA is that
• 49:10
  Speaker 7: it allows diversified assets. We talk about stocks, to talk
• 49:13
  Speaker 7: about bonds, but it also allows you to have the
• 49:15
  Speaker 7: real estate piece. So those rates you can put them
• 49:17
  Speaker 7: in your portfolio, you can put them in your child's portfolio.
• 49:20
  Speaker 7: So whether it's I know, a lot of assignment properties
• 49:22
  Speaker 7: is a huge one.
• 49:23
  Speaker 4: PK. There's another one.
• 49:24
  Speaker 7: Crown Castle has been one that's performed, well, all those
• 49:27
  Speaker 7: rates can now sit inside your child's portfolio and watch
• 49:31
  Speaker 7: that appreciation over the time, and that can be passed
• 49:33
  Speaker 7: down and passed down. So these are the ways when
• 49:36
  Speaker 7: we're talking about, Yeah, if I can't buy a home,
• 49:39
  Speaker 7: or you don't have to buy a home, right, that'd
• 49:40
  Speaker 7: be great if you can have land ownership, But there's
• 49:42
  Speaker 7: other ways to own real estate that we need to
• 49:44
  Speaker 7: take advantage of.
• 49:45
  Speaker 5: Yeah, And that's the good thing about real estate is that,
• 49:47
  Speaker 5: like I said, especially if you're an investor, you can
• 49:50
  Speaker 5: buy let's say you buy a two hundred thousand dollar
• 49:52
  Speaker 5: condo as an investment property, So you buy a condo
• 49:56
  Speaker 5: in the trust trust owns it and you're the owner
• 50:02
  Speaker 5: of that property. As far as like when the rental
• 50:05
  Speaker 5: income comes, you can stipulate from the trust that you
• 50:08
  Speaker 5: actually get the rental income. So now every month you're
• 50:10
  Speaker 5: getting rental income over the course of twenty five years, right.
• 50:14
  Speaker 5: But that what also is happening over the twenty five
• 50:17
  Speaker 5: years is that the property is appreciated, So you're benefiting
• 50:21
  Speaker 5: in your lifetime or as long as you want because
• 50:23
  Speaker 5: you're actually you brought the property and then you're actually
• 50:26
  Speaker 5: getting rental income from the property. Now the property is
• 50:30
  Speaker 5: actually increasing over the cost of time, and it's in
• 50:34
  Speaker 5: the trust and it's designated to go to your child
• 50:38
  Speaker 5: at said age. So now when the child, let's say
• 50:43
  Speaker 5: that two hundred thousand dollars property in twenty years is
• 50:45
  Speaker 5: now worth five hundred thousand dollars. So now the child
• 50:48
  Speaker 5: at that point in time is handled the property. But
• 50:50
  Speaker 5: you've correct you collect the rental income all this time.
• 50:53
  Speaker 5: What you can also say is that part of the
• 50:55
  Speaker 5: transfer is that we have to do a refinance, and
• 50:59
  Speaker 5: I have to I'm going to take two hundred thousand dollars.
• 51:03
  Speaker 5: You're going to refinance the property, and there's probably at
• 51:07
  Speaker 5: that point in time there's three hundred thousand dollars equity
• 51:09
  Speaker 5: in it. So two hundred thousand dollars is going to
• 51:13
  Speaker 5: be paid to me. Why would you do that, Well,
• 51:17
  Speaker 5: you've paid. You've paid yourself as far as what you
• 51:20
  Speaker 5: actually have paid into the property, right, and so you
• 51:25
  Speaker 5: won two ways. Let's say you like, and we're just
• 51:27
  Speaker 5: using a cash example, you pay twenty thousand dollars cash
• 51:29
  Speaker 5: for this property, and you're getting two thousand dollars a month,
• 51:33
  Speaker 5: so you've gotten two thousand dollars a month for twenty
• 51:36
  Speaker 5: or thirty years. You won in that scenario because you've
• 51:40
  Speaker 5: had income coming in every single month, and then you're
• 51:42
  Speaker 5: getting your two hundred thousand dollars that you paid for
• 51:45
  Speaker 5: the property back before you transfer ownership to your child.
• 51:49
  Speaker 5: So your child is still benefiting because they're receiving an
• 51:52
  Speaker 5: asset and the rent is probably now four thousand dollars
• 51:56
  Speaker 5: a month, So even though they're refinanced, the refinance is
• 51:59
  Speaker 5: probably like eighteen undred dollars a month, but they can
• 52:01
  Speaker 5: cover that from the four thousand dollars a month rent
• 52:03
  Speaker 5: that they get, so they're still netting. They're still netting
• 52:05
  Speaker 5: twelve hundred dollars a month tax not tactical, but they're
• 52:08
  Speaker 5: still netting two hundred dollars a month, and they now
• 52:12
  Speaker 5: have a property that is worth five hundred thousand dollars.
• 52:16
  Speaker 5: So in that scenario, nobody lost because you didn't lose
• 52:20
  Speaker 5: any money. You actually made money from the rental income
• 52:22
  Speaker 5: and you got your money that you paid for it back,
• 52:24
  Speaker 5: but you also left something to your child. Well that's
• 52:27
  Speaker 5: that's even better than the stock situation, because in the
• 52:29
  Speaker 5: stock situation, you're just putting money into stocks. You're not
• 52:32
  Speaker 5: getting that money back unless you put a stipulation in
• 52:36
  Speaker 5: the trust that Okay, I'm gonna have to take money
• 52:38
  Speaker 5: out of your brokates account. But in this what you
• 52:40
  Speaker 5: could do that if you want. But in this situation,
• 52:43
  Speaker 5: you actually got all the money back. You made money,
• 52:47
  Speaker 5: the child's making money on the rental, and they have
• 52:49
  Speaker 5: an appreciating asset. So you know, there's different ways that
• 52:52
  Speaker 5: you can you can go about it. But before you
• 52:53
  Speaker 5: set up a trust, of course, you you have to
• 52:55
  Speaker 5: talk to a lawyer. That's important, so you know, seektly
• 53:00
  Speaker 5: counsel see which trust is best for your situation. But
• 53:04
  Speaker 5: you know, this time to kind of get some ideas.
• 53:06
  Speaker 7: I mean, it's important, right setting up a trust, having
• 53:09
  Speaker 7: an attorney, setting up in a state a plan is important.
• 53:13
  Speaker 7: And that can't be expensive, right, Like that's something that
• 53:15
  Speaker 7: people like. It sounds good, but you have to prepare
• 53:18
  Speaker 7: for that, right, Like, I know, I just did one
• 53:19
  Speaker 7: for my family. You did one for yours recently as well. Yeah,
• 53:23
  Speaker 7: it cost us a couple thousand dollars, but we prepare
• 53:25
  Speaker 7: for it. But it's important to lay the guidelines down
• 53:28
  Speaker 7: because yes, I mean, we've done pretty well but he
• 53:31
  Speaker 7: wants to make sure that his grandkids and his legacy.
• 53:33
  Speaker 4: He's continued on.
• 53:34
  Speaker 7: I think the interesting part about what you just explained
• 53:36
  Speaker 7: is that the same thing that you just did, your
• 53:40
  Speaker 7: child can now do for their children at less of
• 53:44
  Speaker 7: a cost. Right, because if it costs you to two
• 53:45
  Speaker 7: hundred thousand up front twenty years of paying a rental
• 53:48
  Speaker 7: income to get it back, well, they didn't have.
• 53:51
  Speaker 4: To go through that part. They've skipped that part.
• 53:53
  Speaker 7: They've jumped into the equity play, and now that could
• 53:55
  Speaker 7: be passed down because the one thing we know about
• 53:57
  Speaker 7: property is that it's going to go up.
• 54:00
  Speaker 4: Right.
• 54:00
  Speaker 7: The cost of living has gone up every year for
• 54:03
  Speaker 7: the past ten years, and so that's going to continue.
• 54:06
  Speaker 4: Right.
• 54:06
  Speaker 7: The amount of land that's available to be built on,
• 54:09
  Speaker 7: especially in the environments that we live in, is becoming scarce, right,
• 54:13
  Speaker 7: and so property values go up, comps are going to
• 54:15
  Speaker 7: go up. That now creates another chain of success for
• 54:19
  Speaker 7: their children, but for your grandchildren as well and their
• 54:22
  Speaker 7: children after that.
• 54:24
  Speaker 6: Yep.
• 54:25
  Speaker 5: Okay, So the last one that we'll talk about is
• 54:28
  Speaker 5: stock gifting.
• 54:30
  Speaker 7: Remember that that post you put up like that was
• 54:32
  Speaker 7: years ago when we were like yo instead at a
• 54:35
  Speaker 7: baby shower getting gifts we should be Brian stocks that
• 54:37
  Speaker 7: really didn't pick up.
• 54:39
  Speaker 4: People really didn't take advantage of that.
• 54:41
  Speaker 7: But that's one of these things, right, Like, if we
• 54:44
  Speaker 7: know the advantage of investing in the market, right, and
• 54:47
  Speaker 7: we have a child that is coming into this, wow,
• 54:50
  Speaker 7: and it doesn't even have to be a baby shower.
• 54:53
  Speaker 7: It could be any type of holiday. It could be
• 54:55
  Speaker 7: a birthday, it could be Christmas. Yes, it's cool to
• 54:57
  Speaker 7: have cool toys and have nice items, but the one
• 55:01
  Speaker 7: thing we know about those items is that they're gonna
• 55:03
  Speaker 7: hold no value after we open and they're not going
• 55:06
  Speaker 7: to appreciate in time, even if it's a collectible like
• 55:08
  Speaker 7: a sneak or something. A child at seven eight not
• 55:11
  Speaker 7: they're wearing that shoe and they're gonna wear that thing
• 55:13
  Speaker 7: to death and it's gonna be worth nothing after it
• 55:15
  Speaker 7: was purchasing one. Whereas if we put it into an
• 55:18
  Speaker 7: investment like a stock or on a etf on index,
• 55:22
  Speaker 7: we know long term that that's going to appreciate, and
• 55:24
  Speaker 7: so we need to get in the habit of at
• 55:27
  Speaker 7: least thinking that way, right, we can now gift an
• 55:31
  Speaker 7: asset that's going to appreciate over the course of someone's life,
• 55:35
  Speaker 7: and even if they don't know, I think that's the
• 55:37
  Speaker 7: perfect part of it. A lot of times and we've
• 55:39
  Speaker 7: seen people be gifted stock and they're like, what is this?
• 55:42
  Speaker 4: What do I do with this?
• 55:43
  Speaker 7: It now becomes a teaching lesson again, Right, you always
• 55:46
  Speaker 7: have to have an inflection point in any point of education.
• 55:49
  Speaker 7: The fact that you've done something that is completely different
• 55:51
  Speaker 7: than buying a PlayStation. Right, maybe you buy Sony stock
• 55:55
  Speaker 7: in addition to it. Right, so now it's best of
• 55:57
  Speaker 7: both for us. Well, here I invested it in the
• 56:00
  Speaker 7: actual item, but here we invested in the company too.
• 56:02
  Speaker 7: Here's why we did it, and here's how long you're
• 56:04
  Speaker 7: going to hold it. It's an inflection point. Now to
• 56:06
  Speaker 7: increase the intelligence of a child that you know, that
• 56:10
  Speaker 7: becomes contagious. Right, the kid now gets to explain to
• 56:12
  Speaker 7: him his peers and his cousins and his friends what happened,
• 56:16
  Speaker 7: and hopefully they explain to their parents. That's how you
• 56:18
  Speaker 7: build education in the community. That digress, Yeah, for sure.
• 56:21
  Speaker 5: And the irs allows tax free gifts of eighteen thousand
• 56:27
  Speaker 5: dollars a year.
• 56:28
  Speaker 4: HW.
• 56:29
  Speaker 5: So we have never really talked about gifting too much,
• 56:32
  Speaker 5: but you can gift eighteen thousand dollars a year tax free.
• 56:38
  Speaker 5: So we talked about the tax benefits as far as
• 56:39
  Speaker 5: you know if you're a self employed person, but this
• 56:41
  Speaker 5: is another way to kind of a tax purposes benefits
• 56:44
  Speaker 5: is you know, when you're talking about stock gifting, the
• 56:48
  Speaker 5: tax aspect is a major part of it.
• 56:51
  Speaker 6: So this is a you can you.
• 56:52
  Speaker 5: Can gift tax free up to eighteen thousand dollars a year,
• 57:00
  Speaker 5: right and it doesn't have to be just stocks, but
• 57:01
  Speaker 5: we're talking about stocks right now, so that's the main focus.
• 57:04
  Speaker 5: But it's the same principles that apply when we talked
• 57:08
  Speaker 5: about all of the other stuff. Right, you you can
• 57:11
  Speaker 5: literally take ten thousand dollars a year and gifted to
• 57:16
  Speaker 5: your child or to your grandchild, and that's tax free
• 57:22
  Speaker 5: and that same compounding interest growth will occur. So that's
• 57:28
  Speaker 5: another benefit of you know, gifting is that the tax
• 57:33
  Speaker 5: aspect of it, like, that's a great way to utilize
• 57:37
  Speaker 5: the tax system in America and to still benefit the
• 57:43
  Speaker 5: next generation.
• 57:44
  Speaker 7: Yeah, and and somebody's going to ask, well, how do
• 57:46
  Speaker 7: I gift it? It goes back to the third way
• 57:49
  Speaker 7: that we said that you can create a millionaire situation
• 57:52
  Speaker 7: for your child, open the up my account. Right, that
• 57:55
  Speaker 7: up my account is super important number. Again for the
• 57:58
  Speaker 7: tax purposes, but again this is now something you can
• 58:01
  Speaker 7: put assets inside of, whether it be collectibles, whether it
• 58:04
  Speaker 7: be real estate, whether it be ibid us to invest
• 58:07
  Speaker 7: in bitcoin. This is a definite must if you're trying
• 58:12
  Speaker 7: to build wealth for your children, right, you have to
• 58:14
  Speaker 7: have a up account. In fact, I encourage everybody after
• 58:17
  Speaker 7: they watch this video or tomorrow morning, go to your
• 58:19
  Speaker 7: broker's account, whichever one you use. And I've done it
• 58:21
  Speaker 7: on each one of them. So Fidelity has it, Schwab
• 58:24
  Speaker 7: has it, e Trade has it, Open an up my
• 58:26
  Speaker 7: account and just open it. Put five hundred dollars in there.
• 58:30
  Speaker 7: In the same way we talk about dollar cost averaging. Right,
• 58:32
  Speaker 7: this is another key things the same way we talked
• 58:34
  Speaker 7: about dollar cost averaging. Make sure that you have a
• 58:36
  Speaker 7: plan into putting money into that up account. Don't just
• 58:40
  Speaker 7: leave it at the five hundred that you did to
• 58:42
  Speaker 7: open it and thinking that it's going to grow. We
• 58:43
  Speaker 7: told you the threshold from a tax standpoint, we told
• 58:46
  Speaker 7: you the things that you can invest inside of it.
• 58:48
  Speaker 7: Make sure that there's a plan to put assets until
• 58:51
  Speaker 7: it can accumulate to something that's going to be worthwhile
• 58:53
  Speaker 7: in the future.
• 58:55
  Speaker 6: So there you have it.
• 58:56
  Speaker 5: It's five ways you got life insurance, growth, ira UTMA,
• 59:01
  Speaker 5: trust account, real estate, and stock gifting. And once again,
• 59:07
  Speaker 5: this isn't something that you don't You're not making a
• 59:09
  Speaker 5: child a millionaire tomorrow, but within their lifetime if done correctly,
• 59:16
  Speaker 5: just one of these can make them a millionaire. And
• 59:18
  Speaker 5: now if you do multiple can one of them can
• 59:21
  Speaker 5: make them a multi millionaire. If you do multiple of these,
• 59:24
  Speaker 5: then they could become extremely wealthy. You can set your
• 59:28
  Speaker 5: child up to become extremely wealthy within their lifetime. That
• 59:32
  Speaker 5: might be at forty, that might be at sixty. But
• 59:35
  Speaker 5: the whole point is that it's a marathon. So you
• 59:37
  Speaker 5: can set your child up to be wealthy in their
• 59:41
  Speaker 5: lifetime by taking steps in actions early on.
• 59:46
  Speaker 4: That's a fact. That's a fact.
• 59:47
  Speaker 7: There's going to be two types of people in the world,
• 59:50
  Speaker 7: the bosses and the people that work for them.
• 59:53
  Speaker 4: De sidewise.
• 59:54
  Speaker 5: And another great resource personal finance is this book right here,
• 1:00:00
  Speaker 5: Deserve to Be Rich New York Times bestseller. So I
• 1:00:04
  Speaker 5: highly encourage everybody that's on the pathway to figure out finance,
• 1:00:09
  Speaker 5: to learn about investing, to try to just become a
• 1:00:11
  Speaker 5: better person when it comes to money. That is the
• 1:00:13
  Speaker 5: blueprint that you that you can't follow step by step
• 1:00:17
  Speaker 5: in detail. So the book is available wherever books are sold,
• 1:00:22
  Speaker 5: and there's an audio version as well, so you deserve
• 1:00:25
  Speaker 5: to be rich. It's change the game personal finance, investing, entrepreneurship, mindset,
• 1:00:34
  Speaker 5: variety of different things.
• 1:00:35
  Speaker 7: Cop it, share it, tag us. I love when people
• 1:00:38
  Speaker 7: tag us when they're in the bookstores and they purchasing it.
• 1:00:40
  Speaker 7: I love when people are personing it for other people
• 1:00:42
  Speaker 7: and tagging them is definitely a game changer. I think
• 1:00:46
  Speaker 7: I'm gonna go in a bookstore and just start signing. Well,
• 1:00:49
  Speaker 7: I have to purchase anything. If I just start signing
• 1:00:50
  Speaker 7: the ones on the shelf, it kind of adds to it.
• 1:00:52
  Speaker 7: It's like an autograph copy. Maybe maybe yeah, I'm gonna
• 1:00:56
  Speaker 7: do that in New York. I'm gonna do that in
• 1:00:57
  Speaker 7: a in a store and just let people know that
• 1:01:00
  Speaker 7: the books are signed here. Come click them up, run
• 1:01:03
  Speaker 7: it up, y'all. We appreciate all the love for it.
• 1:01:06
  Speaker 7: New York Times Bestseller is not an easy feed. It's
• 1:01:08
  Speaker 7: not something that happens every day. But it doesn't happen
• 1:01:10
  Speaker 7: without y'all, So we appreciate the love and support.
• 1:01:13
  Speaker 5: Appreciate it, and once again ianinvest dot com. Yes, there's
• 1:01:17
  Speaker 5: twenty four hours left, there's one day left, fifty percent
• 1:01:20
  Speaker 5: off of stock club and three years a sniper, so
• 1:01:24
  Speaker 5: you can go to ianinvest dot com.
• 1:01:25
  Speaker 6: Take advantage of that. And that's it. Guys.
• 1:01:28
  Speaker 4: It was love.
• 1:01:29
  Speaker 6: We'll see you later peace.
• 1:01:32
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 1:01:36
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 1:01:40
  Speaker 1: accused of murdering a Texas. Man of Venezuelan charged with
• 1:01:44
  Speaker 1: filming and selling child pornography in Michigan.
• 1:01:47
  Speaker 2: These are just.
• 1:01:48
  Speaker 1: Some of the heinous migrant criminals caught because of President
• 1:01:52
  Speaker 1: Donald J.
• 1:01:52
  Speaker 2: Trump's leadership.
• 1:01:53
  Speaker 1: I'm Christine Noman, the United States Secretary of Homeland Security.
• 1:01:57
  Speaker 1: Under President Trump, attempted ille border crossings are at the
• 1:02:01
  Speaker 1: lowest levels ever recorded, and over one hundred thousand illegal
• 1:02:05
  Speaker 1: aliens have been arrested. If you are here illegally, your
• 1:02:09
  Speaker 1: next you will be fine nearly one thousand dollars a day,
• 1:02:12
  Speaker 1: imprisoned and deported, you will never return. But if you
• 1:02:17
  Speaker 1: register using our CBP home app and leave now, you
• 1:02:20
  Speaker 1: could be allowed.
• 1:02:21
  Speaker 2: To return legally, do what's right. Leave now.
• 1:02:25
  Speaker 1: Under President Trump, America's laws, border and families.
• 1:02:29
  Speaker 2: Will be protected.
• 1:02:30
  Speaker 3: Sponsored by the United States Department of Homeland Security,