Latest / Money And Wealth With John Hope Bryant / Don't Fall for 'Financial Pimping'

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Don't Fall for 'Financial Pimping' · Money And Wealth With John Hope Bryant

0:01
Speaker 1: Welcome the Money in Wealth with John O'Bryant, a production
0:05
Speaker 1: of The Black Effect podcast network, and iHeartRadio Serena Williams
0:17
Speaker 1: more of that. So Serena Williams is proving that she
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Speaker 1: really is a triple threat beautiful, intelligent, thoughtful, sophisticated, obviously
0:31
Speaker 1: incredible athlete, mother, you know, friend or whatever, incredible athlete investor.
0:39
Speaker 1: She may be a quadruple thrill. I don't know, but
0:41
Speaker 1: she's a businesswoman without questioning. Is invested in eighty five
0:47
Speaker 1: businesses that I guess her family venture fund has put
0:53
Speaker 1: money in over her career, and it appears a dozen
0:57
Speaker 1: of those have company evaluations in to the billion dollar range,
1:03
Speaker 1: which is I don't know what portfolio, so I can't
1:06
Speaker 1: give you details on it. But it doesn't mean that
1:09
Speaker 1: that she owns all the company, by the way, means
1:12
Speaker 1: she made some smart bets and the bets paid off.
1:15
Speaker 1: In other words, companies that she invested in rolled up
1:18
Speaker 1: into a larger overall valuation that she benefits from because
1:25
Speaker 1: she was an early venture capital investor. So kudos to her.
1:29
Speaker 1: I don't care what the structure is. It's a positive thing.
1:32
Speaker 1: And even I love how you can see her sort
1:35
Speaker 1: of doing her makeup. She's explaining very casually, very confidently,
1:42
Speaker 1: very comfortably, the structure of her investment. She clearly knows
1:48
Speaker 1: what she's talking about. I want you to become an investor. Also,
1:54
Speaker 1: you may not be able to do it the way
1:57
Speaker 1: Serena Williams has done it, and that's okay. But you
2:03
Speaker 1: can do it the way you need to do it.
2:05
Speaker 1: That might be even fractional investing. So you're not Serena
2:11
Speaker 1: and her sister Venus. But maybe you don't play tennis either,
2:16
Speaker 1: but she can't roll and do some of the things
2:20
Speaker 1: that you do as a talent and a gift. Your
2:23
Speaker 1: life is different, Your life is appropriate for you, so
2:27
Speaker 1: it make it all the way down. Do what I
2:28
Speaker 1: call fractual investing, which is you may find that you
2:32
Speaker 1: only have three hundred dollars to invest and the companies
2:37
Speaker 1: that you dream about maybe three thousand dollars stocks, or
2:40
Speaker 1: it might be one hundred thousand dollars worth of a
2:42
Speaker 1: stock basket, but you've got three hundred dollars. But with
2:46
Speaker 1: fractional investing, you can't still invest in those businesses successfully
2:50
Speaker 1: getting a fraction of each of those companies that you
2:53
Speaker 1: believe in in their stock for your portfolio. Did you
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Speaker 1: know that? You can also open a stock account, a
3:00
Speaker 1: proper start account. You can also can do one online
3:03
Speaker 1: through one of the online brokerage companies and buy whole
3:09
Speaker 1: shares of stock. You can buy digital currencies crypto if
3:14
Speaker 1: you want, if that's your thing. You can buy a
3:17
Speaker 1: range of you know, which is more of a riskier
3:21
Speaker 1: basket than of these digital investments, which I'm not saying
3:24
Speaker 1: don't do, or do I do or don't do, just
3:26
Speaker 1: saying don't put your rint money in it. And you
3:29
Speaker 1: can also choose to invest in a mutual fund where
3:35
Speaker 1: you're sharing a risk basket. That's another option for you.
3:41
Speaker 1: You can invest in commercial paper, which is not traded
3:46
Speaker 1: on Wall Street. Is more risk, but it tends to
3:49
Speaker 1: be more reward. I'm actually recommending you don't do that.
3:52
Speaker 1: I'm just giving you the scale you can risk. You
3:55
Speaker 1: invest in a limited private placement, which is a private
3:59
Speaker 1: offering of stock. Make sure that your lawyer checks that
4:04
Speaker 1: out if you decide to do that. You can invest
4:06
Speaker 1: in a crowdfunding platform if you like some small businesses
4:11
Speaker 1: raising some money in your neighborhood or some family member
4:16
Speaker 1: and you decide to invest in the crowdfunding opportunity that
4:20
Speaker 1: could pay off for you. You can invest directly into
4:25
Speaker 1: a business, as my family has done with somebody that
4:29
Speaker 1: we know, and they've got a wellness business that serves
4:35
Speaker 1: a certain clientele in New Jersey, and it's one example,
4:38
Speaker 1: and they need XYZ to get equipment and certifications, and
4:44
Speaker 1: maybe we invest it in that directly and God shares
4:49
Speaker 1: as a result of that. So I'll just give you
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Speaker 1: all the way example, all the way from something that's
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Speaker 1: very removed from you and very fractionalized, a FRAC no
5:00
Speaker 1: share investing, all the way up through a you know,
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Speaker 1: buying a share of a publicly traded company, then by
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Speaker 1: being participating participating in a mutual fund investment vehicle, which
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Speaker 1: is probably the least risky too, you know, all the
5:20
Speaker 1: way through smaller cap investing, all the way up through
5:26
Speaker 1: again as in not suggestion you don't do commercial paper
5:30
Speaker 1: that's very sophisticated and high high risk, and suggesting you
5:33
Speaker 1: don't do that, all the way up through finding a
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Speaker 1: brick and mortar business that you want to back with
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Speaker 1: your five hundred dollars, fifteen hundred dollars, twenty five hundred
5:47
Speaker 1: dollars twenty five thousand dollars. Make sure that you understand
5:50
Speaker 1: the risk and you check with an attorney, et cetera.
5:53
Speaker 1: And you may decide that that's what you want to
5:55
Speaker 1: and maybe that business is just located right around the
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Speaker 1: corner from you. They decide just to do that, or
6:01
Speaker 1: you may decide to just go start a business. You
6:04
Speaker 1: can do that through one million Black Business Initiative and
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Speaker 1: you don't invest anything about your time and your energy.
6:09
Speaker 1: That's an option for you as well, but I suggest
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Speaker 1: you just do something right. I want you to do
6:15
Speaker 1: something and start somewhere. Serena didn't just start at the
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Speaker 1: top of the market investing. She was making money as
6:25
Speaker 1: a tennis player, wasn't making money for a long time,
6:27
Speaker 1: and she wasn't investing. When she started making money. She
6:30
Speaker 1: understood the difference between making money and building wealth, and
6:33
Speaker 1: make money during the day, you build wealth in your sleep,
6:36
Speaker 1: and she was very good. It appears at the building
6:40
Speaker 1: wealth in your sleep part. So now she's actually her
6:43
Speaker 1: wealth is actually really coming from the investments and not
6:47
Speaker 1: her professional tennis career. Anybody who became a billionaire, by
6:52
Speaker 1: the way in professional sports are the arts, did not
6:56
Speaker 1: do it through professional sports. Are the arts they all
7:00
Speaker 1: with corporate Think about Lebron, think about Magic Johnson, whoever
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Speaker 1: your hero shero is. They got the profile in the arts,
7:14
Speaker 1: the public figure profile, you know them as a celebrity.
7:18
Speaker 1: But they leveraged that and went and cut a deal
7:20
Speaker 1: with corporate America, got shares, equity in a corporate entity,
7:28
Speaker 1: or some kind of participation in Doctor dre and headphones,
7:32
Speaker 1: and that's how they became billionaires. I hope this has
7:36
Speaker 1: been helpful. This is John O'Brien. Money and Wealth is
7:39
Speaker 1: the iHeartRadio Black Effect Network podcast series John O'Brien Money
7:45
Speaker 1: and Wealth, dropping new episodes every Thursday.
7:52
Speaker 2: Hey, Hey, this is John O'Briant, founder of Operation Hope,
7:55
Speaker 2: and I created this organization to change the world, to
7:59
Speaker 2: go from civil rights in the streets to silver rights
8:04
Speaker 2: in the business suites.
8:06
Speaker 1: The color's not black or white anymore, or red or blue.
8:09
Speaker 1: That was the second reconstruction and the first reconstruction. The
8:13
Speaker 1: third reconstruction after George Floyd's murder from twenty twenty to
8:17
Speaker 1: twenty thirty. The third reconstruction is about the color green,
8:20
Speaker 1: at least in the US, the color green. It's about
8:23
Speaker 1: not black, white, red, brown, yellow. It's US currency, it's economic,
8:27
Speaker 1: it's opportunity for all, and I want you to get some.
8:30
Speaker 1: That's why I wrote this book, Financial Literacy for All.
8:33
Speaker 1: I've written six books now, several are bestsellers on business.
8:37
Speaker 1: I'm one of a few people of color who's written
8:39
Speaker 1: bestsellers on business, by the way, But all those books,
8:42
Speaker 1: while relate to my work, the memo of how the
8:45
Speaker 1: Porcinsai Capitalism up from nothing, Love Leadership, Banking in Our Future, etc.
8:52
Speaker 1: All those books relate to the work. This is the work.
8:56
Speaker 1: And while I can't counsel and coach every person to
8:59
Speaker 1: raise a critics or fifty four to one hundred points
9:02
Speaker 1: to lower their debt thirty eight hundred dollars, making fifty
9:05
Speaker 1: thousand dollars a year, to increase their savings a couple
9:09
Speaker 1: thousand dollars. While my team can't be with everybody every time.
9:12
Speaker 1: We can't be at your kitchen table, we can't be
9:15
Speaker 1: in your bedroom. We can't be with either car dealership
9:17
Speaker 1: when you're making these decisions. We can't be at the
9:20
Speaker 1: mortgage table when you're buying a house, or worse, when
9:22
Speaker 1: you're renting for the rest of your life and missed
9:24
Speaker 1: out on home ownership and generational wealth. We can't be there,
9:27
Speaker 1: but now I can be. This book is your primer
9:30
Speaker 1: for your life. Hear me now when I say this,
9:34
Speaker 1: financial literacy is a civil rights issue of this generation.
9:37
Speaker 1: Hear me when I say this. This is John O'Brien.
9:40
Speaker 1: I'm telling you a truth that I've learned in my
9:43
Speaker 1: life that changed my life, the one thing that changed
9:46
Speaker 1: everything else. If your day's not about God or love,
9:48
Speaker 1: your day's about money. Financial literacy is the civil rights
9:52
Speaker 1: issue of this generation, and it will affect your life
9:56
Speaker 1: more than almost anything else. Number what cause a divorce? Money,
10:01
Speaker 1: Number one calls for domestic abuse. Money, number one reason
10:05
Speaker 1: for heart attacks, stress, number one reason for stress. Money.
10:10
Speaker 1: Why are ninety five percent of employees stressed out of
10:12
Speaker 1: the job? Economics and money. They're on the job, but
10:15
Speaker 1: their mind is someplace else. They're worrying about those red
10:17
Speaker 1: notices and those cutoff notices. They got too much month
10:20
Speaker 1: at the end of their money. I want you to
10:22
Speaker 1: turn your problems into promise. I want you to turn
10:26
Speaker 1: away from the darkness and into the light. And you're
10:29
Speaker 1: going to do that by setting yourself free. Because you're
10:31
Speaker 1: not dumb, and you're not stupid. It's what you don't
10:33
Speaker 1: know that you don't know that is killing you, but
10:35
Speaker 1: you think you know. Pre order this book today. It
10:37
Speaker 1: comes out in mid April. Pre order today. Let's show
10:41
Speaker 1: the world and send the message that you understand what's
10:45
Speaker 1: really a priority in your life and you back the movement.
10:48
Speaker 1: This is the silver rights movement in the suites, where
10:51
Speaker 1: we get you from the streets to the suites and
10:54
Speaker 1: get the sweets to understand the power of the streets.
10:59
Speaker 1: This is John O'Brien. This is financial literacy for all.
11:01
Speaker 1: A special shout out to Doug Miller, the CEO of Walmart,
11:04
Speaker 1: who did the forward, and all of the heroes and
11:06
Speaker 1: sheiroes who endorse the book. Jamie Dimon, the CEO of
11:10
Speaker 1: J B. Morgan, Chase and my friend Charlemagne thy God,
11:15
Speaker 1: so many heroes and shero Seraph Fryar. All these luminaries
11:19
Speaker 1: have already endorsed this book. They know the power of
11:21
Speaker 1: financial literacy because you make money during the day, you
11:24
Speaker 1: build wealth in your sleep. Hello, it's one of the
11:27
Speaker 1: jewels in here. You make money during the day, you
11:30
Speaker 1: build wealth in your sleep. What are we obsessed about
11:32
Speaker 1: in our communities. I want to make this money and
11:34
Speaker 1: we get this bag. I want to get this dollar.
11:35
Speaker 1: I want to get paid. I want to get I
11:36
Speaker 1: want to get I want I want to get this.
11:38
Speaker 1: This mulah doesn't mean anything. Money is what is just
11:42
Speaker 1: a currency for your time to at work during the day.
11:46
Speaker 1: It's how you live. Literally as you're making it, you're
11:48
Speaker 1: spending it. But you build wealth in your sleep. Home
11:53
Speaker 1: ownership is compounding stocks and bonds, real estate, even education
11:58
Speaker 1: compounds small business ownership. U These are things that when
12:03
Speaker 1: you're sleeping, it's growing for you and so you build
12:07
Speaker 1: generational wealth over time. This is a business plan for
12:11
Speaker 1: the rest of your life. It's financial literacy for all,
12:15
Speaker 1: and I want you to pre order it today. John
12:19
Speaker 1: O'Brien I'm out hey, hey, hey, this is John O'Briant
12:33
Speaker 1: Money and Wealth on the Black Effect Network podcast series
12:39
Speaker 1: on iHeart. I gotta start using codes now. There's so
12:43
Speaker 1: much financial shenanigans going on and folks trying to separate
12:47
Speaker 1: you from your wallet. I'm gonna start using like sign
12:51
Speaker 1: language Like I don't mean like literal sign language, no
12:54
Speaker 1: disrespect intended there, I mean like financial signs like make
13:00
Speaker 1: stuff obvious. What I mean by that is green light,
13:03
Speaker 1: red light, like do it, don't do it. So this
13:08
Speaker 1: one's a red light. This is a bright red light.
13:14
Speaker 1: So my man, Sir James Buchanan, who is one of
13:18
Speaker 1: my assistants and has been invaluable to me and Operation
13:24
Speaker 1: Hope and my family, who's just a good guy, who's
13:29
Speaker 1: also just sort of a very common sense financial literacy
13:32
Speaker 1: genius and what I call it bush attorney, Like he's
13:36
Speaker 1: not really an attorney, but he's the dude that you know,
13:41
Speaker 1: the attorney. Real attorneys don't Hope, don't jump out of
13:43
Speaker 1: a bush somewhere, because he's smarter than them. And he's
13:48
Speaker 1: just real study like he don't play, and he loves
13:53
Speaker 1: hard and so he's got a very solid credit score.
13:59
Speaker 1: And I don't want to get in his business and
14:00
Speaker 1: tell you exactly what credit score is, but it's solid.
14:03
Speaker 1: Just take my word for it. And he works at
14:05
Speaker 1: Operation Hope as a chief Community Officer in addition to
14:08
Speaker 1: being my assistant. And he called me one day he said, John,
14:13
Speaker 1: I can't believe this man, Like my credit score is slid.
14:16
Speaker 1: I know what it is. He can go to a
14:19
Speaker 1: bank and get a line of credit if he wants.
14:22
Speaker 1: And what happened was he got this notice in the
14:27
Speaker 1: mail from a finance company. I'm not going to name
14:31
Speaker 1: the name. It's not important, but you need to know
14:35
Speaker 1: how to defend yourself from folks trying to separate you
14:39
Speaker 1: from your wallet capitalism. This is not personal. This is
14:45
Speaker 1: business in folks, business some people's businesses to separate you
14:50
Speaker 1: from your wallet, from your resources. And this company sent
14:56
Speaker 1: my man a note saying I'm sorry, send him a check.
15:01
Speaker 1: There was a check endorsemble check in the letter. Now,
15:07
Speaker 1: Sir James didn't ask for this, didn't request this, didn't
15:09
Speaker 1: reach out to anybody. Folks just came to him, sent
15:14
Speaker 1: him a note and said, here's fourteen hundred dollars. Now,
15:20
Speaker 1: I'm gonna put this into context. Seventy percent of this
15:23
Speaker 1: country is living from paycheck to paycheck, the largest economy
15:27
Speaker 1: in the world. This is why I say financial literacy
15:29
Speaker 1: is a civil rights issue of this generation, the lard's
15:33
Speaker 1: economy in the world. Seventy percent of all Americans, not
15:36
Speaker 1: poor people, all people are living from paycheck to paycheck.
15:41
Speaker 1: Folks who got too much month at the end of
15:43
Speaker 1: their money. I think it's something like sixty percent of
15:46
Speaker 1: Americans and change don't have four hundred dollars for an
15:50
Speaker 1: unplanned event. Half of those making one hundred thousand dollars
15:54
Speaker 1: a year live from paycheck to paycheck. So you know
15:57
Speaker 1: that I'm talking to you, every one of you listening
15:59
Speaker 1: to this. I don't care what your economic situation might be,
16:02
Speaker 1: or as my dad would say, situation. If you're making
16:06
Speaker 1: a quarter million dollars a year, a third of those
16:09
Speaker 1: living from paycheck to paycheck, can I get an amen?
16:12
Speaker 1: It's the church of what's happening? And now what have
16:14
Speaker 1: you done for me lately? You live in Manhattan, New York. Hello,
16:18
Speaker 1: you make one hundred thousand dollars a year. It feels
16:21
Speaker 1: like thirty nine thousand dollars a year in Manhattan because
16:25
Speaker 1: the cost of living is so high. So wherever you are,
16:27
Speaker 1: this message is for you. Because when my man got
16:32
Speaker 1: this check for fourteen hundred dollars, he realized what this
16:35
Speaker 1: company was doing, enticing people to disconnect their brain and
16:40
Speaker 1: connect their surviving mindset and their depression and their anxiety
16:48
Speaker 1: and the fact they got too much month into their
16:50
Speaker 1: money and they're trying to figure out which bill to pay.
16:53
Speaker 1: It's like Russian roulette at the kitchen table on Friday,
16:56
Speaker 1: which bill to pay? And they know that when they
16:59
Speaker 1: see I noticed like this, and somebody just says, you're
17:01
Speaker 1: pre approved. Not actually you approved right now. Actually just
17:05
Speaker 1: endorsed his check and deposited the money's yours. He knows
17:09
Speaker 1: that most people that get this, a good number of
17:12
Speaker 1: people are just gonna say, my god, this is fantastic,
17:15
Speaker 1: just what I needed, and they're gonna endorse that check
17:17
Speaker 1: and take that money. Now. My man reads and he
17:23
Speaker 1: read the fine print, and this is what the print said.
17:30
Speaker 1: He told me in this note, Chairman. The attached letter
17:32
Speaker 1: was sent to him, and they were you know, he
17:36
Speaker 1: hadn't applied for a loan with his company and hadn't
17:39
Speaker 1: asked him for anything. It just said number, real check,
17:42
Speaker 1: and all you do do it, it says, is just
17:44
Speaker 1: deposit it and the funds are immediately available to you.
17:47
Speaker 1: The issue with these types of offers, he says, is
17:51
Speaker 1: that it come with a healthy prepayment penalty and other
17:54
Speaker 1: processing fees and gives you a payback over fifteen months
18:00
Speaker 1: with an annual percentage rage hold on now of forty
18:05
Speaker 1: point seventy six percent forty point seven six percent is
18:10
Speaker 1: the annual APR annual percentage rate to pay back this long.
18:15
Speaker 1: Let me now break this down into English. Why this
18:19
Speaker 1: is red light red light red light? Loan them out
18:23
Speaker 1: fourteen hundred dollars. We covered that, prepaid financial finance charges
18:30
Speaker 1: prepaid Now you haven't cash his check the ninch you
18:33
Speaker 1: cash your check. Prepaid interest one hundred and forty four
18:37
Speaker 1: dollars and sixty one cents. You owe that immediately, But
18:43
Speaker 1: when I was gotten started yet, prepaid finance charges, pre
18:48
Speaker 1: computed interest now pre computed interest. A loan is two
18:51
Speaker 1: hundred and twenty dollars and fifty nine cents. You haven't
18:56
Speaker 1: written the minute you deposit this check. Okay, you owe this.
19:01
Speaker 1: This is like sharecropping. This is pimping. This is financial pimping.
19:05
Speaker 1: Like sharecroppers, no matter how hard they work, you'll never
19:09
Speaker 1: pay the man off, you'll never get ahead. So let
19:12
Speaker 1: me let me continue write these numbers down now, one
19:15
Speaker 1: hundred and forty four dollars and sixty one cents, and
19:17
Speaker 1: prepaid finance charges two hundred twenty dollars and fifty nine
19:21
Speaker 1: cents in pre computed interests eight percent origination fee, which
19:26
Speaker 1: is a prepaid finance charge forty eight dollars four percent
19:30
Speaker 1: origination fee. This is another origination fee, another prepaid finance
19:35
Speaker 1: charge of forty six dollars and sixty one cents. They're
19:37
Speaker 1: just making this stuff up. Why won't you have two
19:39
Speaker 1: prepaid finance Why woult you have two origination fees? Closing
19:44
Speaker 1: fees fifty dollars. That's a prepaid finance charge. What's a
19:48
Speaker 1: closing cost? It's no closing costs. They've already written the
19:52
Speaker 1: documentation and the loan agreement before they sent it to you.
19:57
Speaker 1: Total monthly maintenance charges forty five dollars. What is a
20:02
Speaker 1: monthly maintenance charge? You sent me a check and told
20:06
Speaker 1: me what the monthly payments are. It's already laid out.
20:08
Speaker 1: What are you maintaining? I guess it's a servicing fee
20:13
Speaker 1: for the forty point seven to six percentag which you're
20:15
Speaker 1: charging me. Total monthly maintenance charge is forty five dollars.
20:20
Speaker 1: The grand total of said fees are four hundred and
20:23
Speaker 1: ten dollars and twenty cents. The fees are assessed regardless,
20:29
Speaker 1: and you may be subject to a refund of said
20:32
Speaker 1: fees if you pay the loan off early. But in
20:35
Speaker 1: all In most cases you won't get a dime back
20:39
Speaker 1: because there's all kind of carve outs and subject tos
20:42
Speaker 1: and whereas is in the agreement. You end up paying
20:46
Speaker 1: back nearly two thousand dollars on a fourteen hundred dollars
20:50
Speaker 1: loan in a year. You could just walk down to
20:54
Speaker 1: the bank if you got a decent credit score. Opera
20:58
Speaker 1: SHOA can help you with this and get an injury
21:01
Speaker 1: a twelve percent eleven percent credit card. If you have
21:04
Speaker 1: decent credit, fourteen percent credit card for sure and no fees,
21:10
Speaker 1: none of this stuff applies, and you're good to go.
21:15
Speaker 1: Maybe even qualify for about this line of credit. Maybe
21:19
Speaker 1: if you have a home, a home equity line of
21:21
Speaker 1: credit costs you next to nothing. A consumer loan. There's
21:27
Speaker 1: all kind of options for you, but you shouldn't be
21:31
Speaker 1: paying forty dollars in seventy six cents to some stranger
21:35
Speaker 1: who's hitting you up with almost five hundred dollars in
21:40
Speaker 1: with four hundred dollars in pre paid charges before you
21:43
Speaker 1: even say boo. And then you got to pay these
21:46
Speaker 1: payment back every month of one hundred and twenty dollars
21:50
Speaker 1: and sixty six cents, which is money that you don't
21:55
Speaker 1: think is a big problem to pay, but it's not
21:57
Speaker 1: edge part of your cash flow today, so it probably
22:00
Speaker 1: will be a problem to pay. And this company has
22:06
Speaker 1: calculated how many people are going to default. They realize
22:11
Speaker 1: that this is unsecured credit, but they're going out to
22:15
Speaker 1: people who got cut credit scores. So these are not
22:18
Speaker 1: These are not dumb people. These are not people who
22:20
Speaker 1: don't pay their bills. These are people who pay their
22:22
Speaker 1: bills but may get caught up in the emotions of
22:26
Speaker 1: the moment. And remember I told you, whenever you make
22:28
Speaker 1: an emotional decision, it's a bad one and you get
22:31
Speaker 1: caught up in what did Malcolm X say. We've been bamboozled,
22:34
Speaker 1: we've been tricked, We've been food. So I want you
22:37
Speaker 1: to understand this is a game that's being played, is
22:40
Speaker 1: being played on your emotions, is being targeted to people
22:44
Speaker 1: who folks think are financially unsophisticated, and they are emotionally
22:47
Speaker 1: depressed and desperate who are living in the moment with
22:51
Speaker 1: a surviving mindset. But you're not dumb and you're not stupid.
22:55
Speaker 1: It's what you don't know that you don't know that's
22:57
Speaker 1: killing you. But you think you know and Now I'm
22:59
Speaker 1: here to tell you that you can do better, because
23:01
Speaker 1: I'm gonna help you know better. Go to a Hope
23:04
Speaker 1: counselor today for free, and we will introduce you to
23:08
Speaker 1: folks that won't rob you blind, for whom we have
23:11
Speaker 1: no economic interest or don't go to who will we
23:16
Speaker 1: introduce you to. Just have us educate you on the
23:18
Speaker 1: process and go to whoever you like. But you don't
23:21
Speaker 1: have to pay somebody almost forty five percent interest rate
23:28
Speaker 1: just because they found your email address and targeted you
23:31
Speaker 1: and made it easy. If success was easy, everybody would
23:35
Speaker 1: be doing it right. Only in the dictionary does the
23:39
Speaker 1: word success come before the word work because it's alphabetical.
23:42
Speaker 1: Do not take these offers unless literally it is your
23:46
Speaker 1: only choice, because this will choke you. It will choke
23:50
Speaker 1: your cash flow in you until you economically die, all right.
23:56
Speaker 1: John O'Brien on the Black Effect Network on iHeart, this
24:00
Speaker 1: is a red light. Hey, John O'Briant, this is money
24:15
Speaker 1: and wealth all in the Black Effect Network, iHeart Radio
24:19
Speaker 1: and the Black Effect Network. And this is a fan
24:21
Speaker 1: question from at DF Underscore Nicole at DF Underscore Nicole
24:27
Speaker 1: on Instagram. What are wise retirement investment focuses for someone
24:32
Speaker 1: at thirty five who just started. First of all, great
24:35
Speaker 1: question at a great time. Thirty five years old is
24:38
Speaker 1: a perfect time for you to get serious about life.
24:42
Speaker 1: You've had your fun in your twenties, you dis stuff
24:45
Speaker 1: in your teens that you don't anybody know about. It's
24:48
Speaker 1: all a blur, and now you're in your thirties you're like, Okay,
24:51
Speaker 1: I guess I should grow up and get serious about
24:54
Speaker 1: this thing. The first thing you should do is, if
24:56
Speaker 1: you're working at any kind of mature company or certainly
25:01
Speaker 1: major company, they're gonna have some kind of retirement program.
25:05
Speaker 1: They're gonna have a four to oh one K plan.
25:07
Speaker 1: The number one thing you should do is invest in
25:10
Speaker 1: that four oh one K. If they're matching you dollar
25:15
Speaker 1: for dollar, you invest five dollars every paycheck into your
25:21
Speaker 1: four one K program. They invest five dollars to match you.
25:26
Speaker 1: It's dollar for dollar. That's free money. That's that five
25:31
Speaker 1: dollar match is free money. And that ten dollars now
25:34
Speaker 1: is going to be invested in the stock market or
25:37
Speaker 1: whatever it is that you signed up for with your employer.
25:40
Speaker 1: Check your four oh one K program and make sure
25:45
Speaker 1: that you are signed up for the kind of investment
25:49
Speaker 1: and the kind of risk tolerance that you're comfortable with
25:54
Speaker 1: with your money. But whatever it is, you're getting the
25:57
Speaker 1: magic of compounding and free money. Again, you put in
26:01
Speaker 1: your five dollars, they had matched you five dollars in
26:05
Speaker 1: this example. The company then took, through typically a fiduciary
26:09
Speaker 1: a third party, the ten dollars now in this example
26:12
Speaker 1: from the pay period, and they've invest that in stocks
26:16
Speaker 1: or bonds or treasury bills or whatever it is you've
26:19
Speaker 1: authorized them to invest in. And that's going to start
26:22
Speaker 1: building momentum in the investment market and over time will
26:28
Speaker 1: build equity. And there's no guarantees and investments that will
26:31
Speaker 1: work out prosperous, but the likelihood is if you stick
26:36
Speaker 1: to it over the long term, you'll probably do better
26:40
Speaker 1: than okay. And if you keep investing every two weeks,
26:43
Speaker 1: as you get a paycheck, put it on allo pay,
26:45
Speaker 1: don't think about it, set and release. In fact, I
26:49
Speaker 1: encourage employers to have an opt out strategy for four
26:52
Speaker 1: oh one K for their employees versus opt in. People
26:55
Speaker 1: are finitially illiterate or not finanially literate are not going
26:59
Speaker 1: to opt in to four oh one K. Investing and
27:02
Speaker 1: I going to say, hey, take some money out of
27:04
Speaker 1: my paycheck. They're going to take We'll take every one
27:06
Speaker 1: of their dollars. Short term thinking, surviving mindset from my
27:11
Speaker 1: book Up from Nothing. Have a new book out by
27:13
Speaker 1: the way, it's called Financial Literacy for all that you
27:16
Speaker 1: should get but which is a great private for this conversation.
27:19
Speaker 1: But my book Up from Nothing talked about people have
27:21
Speaker 1: a surviving mindset, a thriving mindset, and a winning mindset,
27:26
Speaker 1: and will winners or builders have a long term outlook,
27:31
Speaker 1: but those are the surviving mindset. Want to get theirs
27:34
Speaker 1: right now, so we'll take every one of the piece
27:36
Speaker 1: of that paycheck and go spend it or whatever. I
27:39
Speaker 1: want the employers to have an opt out strategy, meaning
27:43
Speaker 1: that you are an investor in Every employee is immediately
27:48
Speaker 1: enrolled in for a one K matching program. They have
27:51
Speaker 1: to request to opt out of that. Likewise, when you
27:54
Speaker 1: sign up as an employee E, when you go to
27:58
Speaker 1: HR department, sign your documents, tell them you want to
28:00
Speaker 1: opt in to the four one K program, and then
28:05
Speaker 1: you tell them how much of your paycheck, either by
28:07
Speaker 1: dollar amount or a percentage you want taken out of
28:09
Speaker 1: your paycheck, and don't get upfraid. If you have a
28:12
Speaker 1: crisis or emergency, there are ways to get your money out.
28:15
Speaker 1: It's not locked up forever. This is your money and
28:19
Speaker 1: when you leave, that goes with you. Four one k's
28:23
Speaker 1: in most places have almost replaced what used to be
28:27
Speaker 1: called pension funds and traditional retirement accounts like that. So
28:32
Speaker 1: this is really important for building for the future. And
28:34
Speaker 1: it's free money, and it's the smartest, easiest thing for
28:38
Speaker 1: you to do. And then you get to determine what
28:40
Speaker 1: that four oh one K investment is going to go
28:43
Speaker 1: into for your money, plus the free money from your employer,
28:47
Speaker 1: which is yours for life and government. You have a
28:53
Speaker 1: crisis your life, you can go and get an emergency withdrawal,
28:56
Speaker 1: et cetera, et cetera, et cetera. So, and it's with
28:59
Speaker 1: regards to thee of investments I would invest suggest maybe
29:03
Speaker 1: starting with a mutual fund or that you know, start
29:08
Speaker 1: with if you want to buy individual stocks, if that's
29:10
Speaker 1: your thing, then do things that you recognize from your
29:14
Speaker 1: own life. But you know, I'm over answering the question
29:17
Speaker 1: when I say do things you recognize the stuff that
29:19
Speaker 1: you love? Right, the kind of companies that are that
29:22
Speaker 1: occupy your daily life, though both of those companies are
29:26
Speaker 1: publicly traded. But to answer the question, four oh one
29:30
Speaker 1: K matching program, all day, all night, free money. And
29:36
Speaker 1: when I looked at the operation up one day at
29:39
Speaker 1: a very small percentage of my employees, we're taking advantage
29:42
Speaker 1: of that. I was embarrassed because I'm running a financial
29:44
Speaker 1: literacy organization. Now proud to say the vast majority of
29:47
Speaker 1: my employees, the overwhelming majority of my employees are now
29:50
Speaker 1: participants in the four Way K program. We are helping
29:54
Speaker 1: them to build wealth and not just make money. It's
29:57
Speaker 1: John O'Bryant re the book Financial Ducy for raw pre
30:02
Speaker 1: order it. Tell your friends to subscribe to this podcast,
30:06
Speaker 1: get your financial coaching through Operation Hope and change your life.
30:12
Speaker 1: John O'Briant, Money of Wealth, I'm out Thank you at
30:17
Speaker 1: df underscore Nicole on Instagram. Money and Wealth with John
30:23
Speaker 1: O'Brien is a production of the Black Effect Podcast Network.
30:27
Speaker 1: For more podcasts from the Black Effect Podcast Network, visit
30:30
Speaker 1: the iHeartRadio app, Apple Podcasts, or wherever you listen to
30:34
Speaker 1: your favorite shows.