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Study Hall: Make Money When Stocks Go Down + Million Dollar Investment Plan · 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. Trump's leadership. I'm Christy nom the United States
• 0:23
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 0:28
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 0:31
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 0:35
  Speaker 1: are here illegally, your next you will be fined nearly
• 0:39
  Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
• 0:43
  Speaker 1: never return. But if you register using our CBP home
• 0:46
  Speaker 1: app and leave now, you could be allowed to return legally.
• 0:50
  Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
• 0:55
  Speaker 1: border and families will be protected.
• 0:57
  Speaker 2: Sponsored by the United States Department of Homeland Security.
• 1:00
  Speaker 3: Don't do something.
• 1:01
  Speaker 4: Yeah, I don't want to take them too much. I know,
• 1:04
  Speaker 4: no take it.
• 1:05
  Speaker 3: Shoty gonna get to work too.
• 1:06
  Speaker 5: You about to go to work, and so sixteen you
• 1:09
  Speaker 5: kind of just threw me that, like the whole alley
• 1:11
  Speaker 5: you because when you said defense, play defense, play defense,
• 1:15
  Speaker 5: we only talk about things that we're doing, right, and
• 1:17
  Speaker 5: so over here Algi like we're like, we got to
• 1:19
  Speaker 5: play some defense in some.
• 1:20
  Speaker 3: Of these positions that we have. And so there was
• 1:22
  Speaker 3: this great guy who talked about in.
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  Speaker 5: Verse indexes on this episode I think like seventy or
• 1:28
  Speaker 5: something like that, and so I don't think people really
• 1:32
  Speaker 5: understand what that looks like. So I'm gonna share my
• 1:34
  Speaker 5: screen and then we'll go through a little chartist play.
• 1:37
  Speaker 5: It'll be quick, I try. All right, we're good, thumbs out,
• 1:47
  Speaker 5: y'all can see the screen? Yes, perfect, perfect, perfect perfect.
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  Speaker 3: Let me go over here.
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  Speaker 4: Somebody was reading all my tabs. They were like, yo,
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  Speaker 4: what you're doing.
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  Speaker 5: On that site?
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  Speaker 4: But yeah, so obviously I know i'd love to use
• 1:58
  Speaker 4: y'allhoo finance it can me oh oh, let me let
• 2:05
  Speaker 4: me check the audio real quick. Yeah we're good. You
• 2:08
  Speaker 4: can hear me good, I can hear you all right, Yeah,
• 2:11
  Speaker 4: we don't have to do this, and.
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  Speaker 5: So obviously we like I told you all from day one,
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  Speaker 5: I love using the y'all who finance charge just because
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  Speaker 5: it's easier visual for me to see, uh, and to
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  Speaker 5: break down. And so what it inverse index does, It's
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  Speaker 5: kind of like hedging. So you just laid it out
• 2:25
  Speaker 5: perfectly right. You said, there's no point of having a well,
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  Speaker 5: having a two hundred percent gain is great, but if
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  Speaker 5: you lose one hundred and seventy five percent of it,
• 2:33
  Speaker 5: what's the point. And so when we heard Mark tell
• 2:35
  Speaker 5: us that story, we're like, yo, maybe we should start
• 2:37
  Speaker 5: figuring out some place to hedge some of these positions
• 2:40
  Speaker 5: we got. And so uh, I had a conversation shout
• 2:43
  Speaker 5: out to Tally uy Yo alum u Uio University Alum.
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  Speaker 5: She was like, Yo, I want you to look into
• 2:48
  Speaker 5: these positions, and so ESDW let's see, it's one of
• 2:53
  Speaker 5: these inverse indexes. And so I'm gonna show you exactly
• 2:59
  Speaker 5: what that means. And so as obviously right here it
• 3:03
  Speaker 5: tracks the Dow thirty and so if we look at it,
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  Speaker 5: as the Dow goes up, this position goes down right,
• 3:11
  Speaker 5: and as hold on, as the Dow goes down, this
• 3:18
  Speaker 5: position goes rises right. So we can see here in March, obviously,
• 3:22
  Speaker 5: when Corona happens, look at the price target here for
• 3:25
  Speaker 5: sdal right hit a high eighty four. And as we've
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  Speaker 5: been managing with Corona and dealing with the pandemic and
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  Speaker 5: the economy has grown, we can see that this is
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  Speaker 5: trailed down. Some people might be looking at us, like,
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  Speaker 5: why am I going to invest in anything that treads down? Well,
• 3:40
  Speaker 5: here's why, right, it's the same reason Ian just said.
• 3:43
  Speaker 5: If you're up to two hundred percent and there's a correction,
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  Speaker 5: you're going to lose some of that percentage. And so
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  Speaker 5: let's go back to the last couple of corrections that
• 3:52
  Speaker 5: we had, right, We had one in September second and
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  Speaker 5: I know the date because I took the picture of
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  Speaker 5: my account and I was like, oh my gosh.
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  Speaker 4: This is different. How am I going to manage?
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  Speaker 3: Let me see? Can I see the over there? Let's
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  Speaker 3: go up a little.
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  Speaker 5: Bit right, here we go, so you can see market's
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  Speaker 5: doing great. I think we'rehitting all time hides apples at
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  Speaker 5: all time high. There's a split, right, it hits a
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  Speaker 5: low here at sixteen, but then there's a correction and
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  Speaker 5: you can see the tart.
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  Speaker 4: Rise, right. And so as this is rising, people are
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  Speaker 4: making money.
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  Speaker 5: Right, So some people, when in the options game, this
• 4:30
  Speaker 5: would be like a put. Right as the stock the
• 4:33
  Speaker 5: option call goes down, the put price goes up.
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  Speaker 4: So it's the same thing.
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  Speaker 5: Can actually buy shares in this and so you can
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  Speaker 5: see it here, right, we got up to sixteen right
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  Speaker 5: at the end of October.
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  Speaker 4: We saw it again. Why I took a picture because
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  Speaker 4: I was like, no, not again, not again.
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  Speaker 5: And so at the end of October we can see
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  Speaker 5: it down here, it's hitting it's low and then boom,
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  Speaker 5: there's another correction at the end of October.
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  Speaker 4: And so obviously s Dall's price goes up to almost nine.
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  Speaker 4: It opened that nineteen and it got up to twenty
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  Speaker 4: one to forty, right, and so ever since you can
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  Speaker 4: see as.
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  Speaker 5: The economy grows and the dow grows, this has been
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  Speaker 5: going down. And everybody's keeps saying, when, wait, there's gonna
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  Speaker 5: be a correction.
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  Speaker 4: There's gonna be a correction. When is everything gonna fall?
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  Speaker 4: That just can't be green all the time.
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  Speaker 5: And so if that is your thought, then this is
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  Speaker 5: a position where you can take insurance.
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  Speaker 3: Right.
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  Speaker 4: Think of it as insurance.
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  Speaker 5: Right, If I pay five hundred dollars to get into
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  Speaker 5: this position, and hey, the economy keeps growing, great, you
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  Speaker 5: have positions that are gonna hedge this right, that means
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  Speaker 5: you've gained more. But if there is a correction, right,
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  Speaker 5: you're gonna make money on the way down. And so
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  Speaker 5: I want people to keep that in mind. And there's
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  Speaker 5: plenty of them, right.
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  Speaker 4: This is just one s That was one I wrote down.
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  Speaker 4: A few others.
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  Speaker 5: SDS is one dog Dog, which is an ETF. You
• 5:50
  Speaker 5: can buy positions in this and so this is like
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  Speaker 5: the insurance play. If you're getting nervous, if you're getting apprehensive,
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  Speaker 5: like wait, this can't be green with time. If you
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  Speaker 5: feel that way, great, make some insurance plays, hedge your
• 6:04
  Speaker 5: bets and play a safe. Play a safe.
• 6:08
  Speaker 4: That was it. That's all I want. This is what
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  Speaker 4: we're actually doing.
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  Speaker 5: Every time we're doing something and we're like, yo, let's
• 6:13
  Speaker 5: show them what we're doing. This is what we're doing,
• 6:16
  Speaker 5: and this is how we're trying to say, look, yeah,
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  Speaker 5: we can make the one hundred percent here, right, But
• 6:20
  Speaker 5: if I if I just advocate a little bit of
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  Speaker 5: funds to hedge it maybe five hundred one thousand dollars
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  Speaker 5: to some of my plays.
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  Speaker 4: If I lose that one thousand, that's great.
• 6:30
  Speaker 5: That means that my other investments have gone up, right,
• 6:33
  Speaker 5: if it goes down, like I said, then we can
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  Speaker 5: make some money on the way down with our thousand
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  Speaker 5: dollars investment.
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  Speaker 6: So the only thing I want to time and say
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  Speaker 6: for everyone listening, and also for legal reasons, you shouldn't
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  Speaker 6: have more than ten percent of your account hedging. And
• 6:47
  Speaker 6: then also you should not be in a position longer
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  Speaker 6: than ten days. If you do an equally wayed you're
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  Speaker 6: basically bettering against the market. And if you look even
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  Speaker 6: at that was a your one hundred or two hundred,
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  Speaker 6: that's red. Yeah, yeah, it's not broken above twenty one
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  Speaker 6: thirty nine in a long time.
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  Speaker 4: Can you hit max chart for me real quick, sir, please?
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  Speaker 6: I mean you can see this has been sloping down forever, right,
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  Speaker 6: but the Twelvey four to twenty max line for that
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  Speaker 6: two hundred has not been touched, so it's an inverse product.
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  Speaker 6: But maximum ten days, and I wouldn't have more than
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  Speaker 6: ten percent of your account hedging because if.
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  Speaker 4: You do twenty five percent and fifty, you are going
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  Speaker 4: to get destroyed. And that's the key. Right.
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  Speaker 5: Well, when I'm talking about investment, I'm not talking about
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  Speaker 5: your whole time even twenty five percent. We're talking small amounts,
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  Speaker 5: like I said, five hundred dollars, maybe one hundred dollars.
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  Speaker 5: If you're doing that just so it offset some of
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  Speaker 5: the losses that you have in the event of the pressure.
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  Speaker 2: That's amazing, man, I appreciate that.
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  Speaker 3: Yeah. Mark Cuban spoke about that on an.
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  Speaker 4: Episode two that got me thinking, like, wait, he was.
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  Speaker 7: Saying that, you know, if a lot of people he
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  Speaker 7: was like, right now, he's hedging a lot of it.
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  Speaker 3: This story was like, you haven't watched that Mark Cuban episode.
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  Speaker 3: You got to check it out.
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  Speaker 7: But you know, the story is legendary how he got
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  Speaker 7: five billion dollars in Yahoo stopped and Yahoo stock defined
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  Speaker 7: ninety three percent. But he actually made more money when
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  Speaker 7: it declined because he had put and he hedged his position.
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  Speaker 7: And he was saying when he went on CNBC. He
• 8:17
  Speaker 7: was going on CNBC and everybody was saying, like, yo,
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  Speaker 7: do you feel stupid.
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  Speaker 3: He was like nope. He was like insurance.
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  Speaker 7: At end of the day, I can sleep at night
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  Speaker 7: knowing that, you know, if it falls, I'm protected. And
• 8:26
  Speaker 7: when it did fall, not only was he protected, but
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  Speaker 7: he made a boatload of money. And after he told
• 8:31
  Speaker 7: us that story. He was saying that right now he
• 8:34
  Speaker 7: has hedges on all his stocks, and he was saying
• 8:36
  Speaker 7: that he advises people to at the very least thing
• 8:41
  Speaker 7: about hedging, because if it goes south, at least you know,
• 8:47
  Speaker 7: you can recoup some funds. But if it doesn't go south,
• 8:49
  Speaker 7: like choice as an insurance policy, so you don't put
• 8:52
  Speaker 7: too much on the hedge, whether it's a port, whether
• 8:55
  Speaker 7: it's an inverted each yeah, index, you don't put too
• 9:00
  Speaker 7: much on it. It's like insurance, right, like if you
• 9:03
  Speaker 7: pay two hundred a month for your car insurance, hopefully
• 9:06
  Speaker 7: you definitely get in a car accident, hopefully, but if
• 9:09
  Speaker 7: you do get in a car accident, then you got
• 9:11
  Speaker 7: the insurance. So it's the same thing. It's the same
• 9:14
  Speaker 7: thing with the with the investment. So something to think about.
• 9:17
  Speaker 7: You know, everybody can do what they want. Our job
• 9:20
  Speaker 7: is not to tell you what to do, just to
• 9:21
  Speaker 7: give the information. But something that definitely marked you made
• 9:25
  Speaker 7: a point of saying, and.
• 9:28
  Speaker 6: And he bought the market like crazy after two thousand
• 9:30
  Speaker 6: and three, but he made money on Yahoo shorter and
• 9:33
  Speaker 6: then rose the market back.
• 9:35
  Speaker 5: Up like h once he said that like all right,
• 9:39
  Speaker 5: we gotta this is the reason why this is happening
• 9:41
  Speaker 5: right now. We got to start looking at this a
• 9:43
  Speaker 5: little different. Like I like what Shotty said, We're not
• 9:45
  Speaker 5: telling anybody what to do. We're gonna tell you what
• 9:48
  Speaker 5: we're actually doing, and if it can help somebody, great,
• 9:52
  Speaker 5: If it can't, that's great too.
• 9:53
  Speaker 4: We're just gonna be transparent about what we're doing.
• 9:57
  Speaker 7: I had I hedge once again people saying what it's
• 10:00
  Speaker 7: a hedge. A hedge is when you're hedging your position
• 10:04
  Speaker 7: and whatever you have, you're investing opposite of it. So
• 10:07
  Speaker 7: if I'm investing in the stock market right a hedge
• 10:12
  Speaker 7: might be the inverted index, where I'm actually also investing
• 10:16
  Speaker 7: that the stock market is going to go down. That's
• 10:18
  Speaker 7: a hedge. Or you can put a put on a
• 10:21
  Speaker 7: stock or a call. You can have If I have
• 10:23
  Speaker 7: Apple stock and I think it's going to go down
• 10:26
  Speaker 7: in the short term, I might put.
• 10:27
  Speaker 3: A put on Apple.
• 10:28
  Speaker 7: Or put is the opposite of a call, where you
• 10:31
  Speaker 7: actually think that the stock is going to go down.
• 10:33
  Speaker 7: That's what Mark Cuban did with his Yahoo stocks. So yeah,
• 10:37
  Speaker 7: hedging is pretty much just uh security measure that you
• 10:41
  Speaker 7: would take in case it goes opposite from the direction
• 10:46
  Speaker 7: that you're invested in. That's pretty much ahead.
• 10:50
  Speaker 2: That was like, that was good.
• 10:54
  Speaker 3: You're not go a lot of time.
• 10:55
  Speaker 7: People only think that you're gonna invest one way. When
• 10:56
  Speaker 7: you think about the investment, you think about investments going up.
• 10:59
  Speaker 7: But you could also invest in investments going down. You
• 11:01
  Speaker 7: can make a lot of money. To Big Short Wanted
• 11:03
  Speaker 7: a great, great movie, great book. And during two thousand
• 11:07
  Speaker 7: and eight, during the financial crisis, a few guys made
• 11:11
  Speaker 7: billions of dollars because they bet on mortgages falling apart
• 11:16
  Speaker 7: and it happened. And when it happened, they got paid out.
• 11:20
  Speaker 7: Crazy actually had to make products. Those products wasn't even
• 11:23
  Speaker 7: actually out, They made those products just for them.
• 11:26
  Speaker 3: It's a very good movie. I encourage everybody to watch it.
• 11:29
  Speaker 6: Yeah, I'm gonna drop a link to where you guys
• 11:31
  Speaker 6: can go and back test what allocation would be right
• 11:34
  Speaker 6: for you.
• 11:34
  Speaker 4: So you're just not hearing it.
• 11:36
  Speaker 6: You can go to portfolio visualize it though, and go
• 11:38
  Speaker 6: to back test portfolio and see if you had ten
• 11:42
  Speaker 6: percent of your portfolio versus what you have now, how
• 11:45
  Speaker 6: well it we'll do. And then also bonds like bonds
• 11:46
  Speaker 6: is a good way to hedge as well. But play
• 11:49
  Speaker 6: with that and see what allocation is right for you
• 11:51
  Speaker 6: based on where you are financially, so you're not just
• 11:53
  Speaker 6: running out and doing something incredibly risky.
• 11:57
  Speaker 3: And gold to old used to be a hedge too,
• 11:59
  Speaker 3: but now gold is kind of moving in the same perfection.
• 12:01
  Speaker 7: Yeah, I don't know if that's a hedge anymore, but
• 12:05
  Speaker 7: that's also so you can also have different allocation. Yeah,
• 12:08
  Speaker 7: we can do a whole Euil University class about heges
• 12:10
  Speaker 7: because it's actually a lot more now that I'm thinking
• 12:12
  Speaker 7: about it. There's a lot of different ways how you
• 12:13
  Speaker 7: can hedge.
• 12:14
  Speaker 6: Also insurance, but people don't talk about assurance or.
• 12:18
  Speaker 3: Act I was just about to say that's crazy.
• 12:21
  Speaker 7: I was just about to literally, I was just about
• 12:22
  Speaker 7: to say that, like a whole life insurance definitely is
• 12:25
  Speaker 7: a hedge.
• 12:26
  Speaker 3: I know everybody's gonna jump in the comment it's like
• 12:28
  Speaker 3: my whole life. You're not here to tell you what
• 12:30
  Speaker 3: to do.
• 12:31
  Speaker 7: But it definitely can be used as a hedge because
• 12:33
  Speaker 7: it's not depending on the stock market. It's guaranteed and
• 12:36
  Speaker 7: it's through dividends, so when the stock market goes down,
• 12:39
  Speaker 7: whole life pole the cash value can still go up.
• 12:42
  Speaker 7: So yeah, fixed interest investments definitely could be a hedge,
• 12:46
  Speaker 7: not only against inflation, so you can hedge against inflation
• 12:50
  Speaker 7: as well. This is an ongoing conversation. We can have
• 12:52
  Speaker 7: a whole about this, but yeah, there's more than one
• 12:55
  Speaker 7: way to skin a cat. So Ian was saying, you know,
• 12:58
  Speaker 7: as far as me, I'm still practicing as an advisor.
• 13:01
  Speaker 7: People might not know that, but I still have my
• 13:03
  Speaker 7: financial planning business. So he thought it would be a
• 13:06
  Speaker 7: good idea if I kind of give like an example
• 13:11
  Speaker 7: of what somebody would do if they came into, you know,
• 13:14
  Speaker 7: a windfall of money, because you are talking about like
• 13:15
  Speaker 7: a portfolio and to diversify.
• 13:18
  Speaker 3: But it's like, what does that mean? Like what I mean?
• 13:20
  Speaker 3: So it's like, all right, this is like a sample
• 13:23
  Speaker 3: of what I would you recommend a client to do.
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• 16:07
  Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
• 16:12
  Speaker 1: border and families will be protected.
• 16:15
  Speaker 2: Sponsored by the United States Department of Homeland Security.
• 16:17
  Speaker 7: Then once again, everybody's situation is different. This is just
• 16:21
  Speaker 7: the general idea framework. And somebody like came into my
• 16:25
  Speaker 7: office and I had a conversation. But I just wanted
• 16:27
  Speaker 7: to kind of give some give you kind of framework
• 16:30
  Speaker 7: of like a financial plan, because we haven't really talked
• 16:33
  Speaker 7: about like that too much. So like a financial plan.
• 16:36
  Speaker 7: So we picked the magical number one million dollars. So
• 16:41
  Speaker 7: and picked the thirty five year old, right, thirty five
• 16:43
  Speaker 7: year old to one million dollars. So if you have
• 16:46
  Speaker 7: one million dollars, say in a life insurance policy, that
• 16:49
  Speaker 7: was you know, you got the reason why I say,
• 16:51
  Speaker 7: the life insurance doesn't tax free, so you'll get one
• 16:54
  Speaker 7: million dollars as no taxes that you have to pay.
• 16:57
  Speaker 7: So out of that one million, the first thing I
• 17:00
  Speaker 7: would suggest somebody to do his payoff debt the first day.
• 17:04
  Speaker 7: So you know, the average American household has fifty seven
• 17:08
  Speaker 7: hundred dollars a credit card debt, and depending on where
• 17:12
  Speaker 7: you live in the country, that that's even low. Like
• 17:14
  Speaker 7: what I mean like a lot of people have a
• 17:15
  Speaker 7: lot higher than that. But I would take at least
• 17:17
  Speaker 7: ten thousand dollars to pay off credit, especially credit card debt.
• 17:20
  Speaker 7: That would be like the first thing that I would do.
• 17:22
  Speaker 7: Then I would put money in savings online savings account.
• 17:27
  Speaker 7: So you know, thirty five hundred dollars is the average
• 17:30
  Speaker 7: American savings thirty five hundred. So we talk about stocks,
• 17:35
  Speaker 7: and we talk about you know, long term investing, but
• 17:38
  Speaker 7: me personally, I don't feel like anybody should invest before
• 17:42
  Speaker 7: they have their credit card debt paid off. If it's reasonable,
• 17:47
  Speaker 7: and savings, you gotta learn to save. Cash is trash,
• 17:51
  Speaker 7: very true, but but you have to have some money
• 17:55
  Speaker 7: in savings because what happens is that if you don't
• 17:57
  Speaker 7: have money in savings, your investments become your saving. So
• 18:00
  Speaker 7: when your tire blows, or you get sick, or your
• 18:04
  Speaker 7: dog needs to go to the veterinarian, all of these things,
• 18:08
  Speaker 7: you got to have an emergency fund.
• 18:09
  Speaker 3: You got to.
• 18:10
  Speaker 7: So I'm a big proponent and having at least six
• 18:12
  Speaker 7: months at least six months of living expenses in the
• 18:15
  Speaker 7: emergency funds. So I would put fifty thousand dollars into
• 18:19
  Speaker 7: an online savings account. The reason why I say online
• 18:22
  Speaker 7: savings account has a higher interest rates slightly higher than
• 18:25
  Speaker 7: brick and mortar, and I like to separate. I don't
• 18:28
  Speaker 7: want to have all my eggs in one basket. So
• 18:30
  Speaker 7: like me, I bank with Chase, but I have my
• 18:32
  Speaker 7: online savings with Capital One. So for a couple of
• 18:36
  Speaker 7: different reasons, A, I just don't want to have all
• 18:39
  Speaker 7: your eggs in one basket, and then be psychologically for me,
• 18:43
  Speaker 7: it's a lot less tempting to transfer money from It's
• 18:45
  Speaker 7: because you got to go to a whole different app
• 18:48
  Speaker 7: and it takes like three days to take the money out.
• 18:50
  Speaker 7: So it's like the whole point of the online savings
• 18:53
  Speaker 7: is just out of sight, out of mind. You don't
• 18:55
  Speaker 7: really want to even think about it. With Chase app,
• 18:57
  Speaker 7: I go in there every day and I would see
• 18:59
  Speaker 7: that on my Chase app if I had to on
• 19:02
  Speaker 7: my own line savings that Chase, So that's just something
• 19:04
  Speaker 7: to think about. I would put seventy five thousand into
• 19:07
  Speaker 7: a five to twenty nine plan. The reason why I
• 19:08
  Speaker 7: say seventy five thousand if I person had kids, because
• 19:11
  Speaker 7: now you can frontload the five twenty nine five years,
• 19:14
  Speaker 7: so that allows you to put a maximum amount. And
• 19:16
  Speaker 7: whenever you get a lump sum like that, you know
• 19:18
  Speaker 7: you always want to compound the entrest. So the more
• 19:20
  Speaker 7: money you can put it up front, the better. So
• 19:22
  Speaker 7: I would frontload it for five years. Now front loader,
• 19:24
  Speaker 7: you can't put more money in for five years, but
• 19:26
  Speaker 7: at least you have that seventy five thousand right away
• 19:28
  Speaker 7: that's working. And you know, depending on the state that
• 19:32
  Speaker 7: you live, and you get a state tax deduction for
• 19:33
  Speaker 7: five to twenty nine plans as well, So we talked
• 19:35
  Speaker 7: about that. I would put seventy five thousand into an
• 19:39
  Speaker 7: ut month. The reason why the UTMA not the five
• 19:42
  Speaker 7: to twenty nine is that you once to gain, you
• 19:43
  Speaker 7: want to diversify. Five twenty nine is great for college
• 19:46
  Speaker 7: and education, but what if the kid doesn't want to
• 19:48
  Speaker 7: go to college, or what if you know what I'm saying,
• 19:50
  Speaker 7: like the ain't thinking happened. So the utmaches provides more flexibility,
• 19:56
  Speaker 7: and you know, I would invest in something that we've
• 19:58
  Speaker 7: talked about before, like a.
• 20:01
  Speaker 3: You know ETF that is broad range.
• 20:03
  Speaker 7: Get broad range exposure to the stock market to a
• 20:06
  Speaker 7: lot of the top ten companies, so you don't have
• 20:08
  Speaker 7: to like risk it with penny stocks or something like that.
• 20:11
  Speaker 7: It's your kids future. You don't want to take too
• 20:13
  Speaker 7: much risk with that. Life insurance is something that you
• 20:16
  Speaker 7: definitely need to have. It's an important part of the
• 20:19
  Speaker 7: financial planning process. So no matter how you go about it,
• 20:22
  Speaker 7: whether you get term insurance, if you're thirty five, you
• 20:24
  Speaker 7: can probably get a million dollar term insurance p six
• 20:27
  Speaker 7: hundred dollars a year. Healthy, if you're in good shape,
• 20:30
  Speaker 7: you get like six hundred dollars a year. Now, granted,
• 20:33
  Speaker 7: you're not gonna make any money off that because it's
• 20:35
  Speaker 7: term and it only lasts like, let's say twenty years,
• 20:37
  Speaker 7: But twenty years is still a long time, you know
• 20:40
  Speaker 7: what I mean. So it's like, I personally think that
• 20:44
  Speaker 7: a million dollars is something that at the very least
• 20:46
  Speaker 7: most people in today's society should try to aim for
• 20:50
  Speaker 7: when it comes to life insurance size, because if you're
• 20:54
  Speaker 7: thinking about it, you're taking care of your family or
• 20:57
  Speaker 7: at least one child. A million dollars not really that
• 21:00
  Speaker 7: much money in the grand scheme of things, because it's
• 21:02
  Speaker 7: like that has to last their whole life. That's replacing
• 21:04
  Speaker 7: your your earning potential. So if you make one hundred
• 21:07
  Speaker 7: thousand dollars a year, a million dollars cover is ten
• 21:11
  Speaker 7: years of your of your salary. Yeah, you know, you
• 21:14
  Speaker 7: look at it from that standpoint. So the life insurance
• 21:17
  Speaker 7: is something I definitely would encourage. Like I said, you
• 21:19
  Speaker 7: can do term, you can do whole life. That's a
• 21:21
  Speaker 7: whole conversation within itself. I would probably put one hundred
• 21:24
  Speaker 7: thousand dollars into idea. Idea A lot of people might
• 21:28
  Speaker 7: not be familiar with that is that is called the
• 21:30
  Speaker 7: deferred income of So either the ideas are great plays,
• 21:35
  Speaker 7: especially for retirement or long term. Like this is why
• 21:38
  Speaker 7: when you see a lot of athletes can get contract,
• 21:40
  Speaker 7: some of them they get DEAs. One of the probably
• 21:42
  Speaker 7: the most famous DEA in our recent time is Alan Iverson.
• 21:46
  Speaker 7: So a lot of people are very familiar with that
• 21:48
  Speaker 7: Rebot contract where I think it pays him like one
• 21:52
  Speaker 7: point five million, like starting like in two years, he
• 21:55
  Speaker 7: gets like one point five million for the rest of
• 21:57
  Speaker 7: his life. What they did with that was that it
• 22:01
  Speaker 7: was part of his contract that a portion of the
• 22:03
  Speaker 7: money that was paid to him went into a.
• 22:05
  Speaker 3: DA which is a referred income annuity.
• 22:08
  Speaker 7: So it sits in an annuity contract and it could
• 22:10
  Speaker 7: be set up a fifteen thirty high a loan you want,
• 22:13
  Speaker 7: but like let's says you put ten million dollars into
• 22:15
  Speaker 7: a deal and then in fifteen years now that ten
• 22:18
  Speaker 7: million will pay a lifetime income of one million dollars. Right,
• 22:23
  Speaker 7: So it's it's similar to like how like the lottery.
• 22:25
  Speaker 7: You can do the same thing with lottery. So that's
• 22:29
  Speaker 7: great because now you defer, you defer. So it's like
• 22:32
  Speaker 7: if you blow everything and at least you know you
• 22:35
  Speaker 7: got that coming to you every single year. So especially
• 22:39
  Speaker 7: for some people that have some amounts of money, the
• 22:42
  Speaker 7: DA is definitely a great idea.
• 22:44
  Speaker 3: After that, I would.
• 22:46
  Speaker 7: Invest four hundred thousand dollars into the market, a split
• 22:50
  Speaker 7: between ETF and tech stocks, even some mutual funds, so
• 22:53
  Speaker 7: like FK, D and X We talked about that, XLK, XI, SMH,
• 22:59
  Speaker 7: you know regulars tech stocks, the obvious Apple, Microsoft, Tesla, Amazon,
• 23:05
  Speaker 7: things in that nature. Because it's like you don't really
• 23:08
  Speaker 7: necessarily have to try to hit home runs when you
• 23:11
  Speaker 7: guarantee doubles, Like you know what I'm saying. You guarantee
• 23:15
  Speaker 7: the double, you're guaranteed to have twenty points every every game.
• 23:18
  Speaker 7: You don't need to try to score fifty. So in
• 23:21
  Speaker 7: my brain, those all make sense. They all have strong
• 23:24
  Speaker 7: track records, they all want to be here for a
• 23:25
  Speaker 7: long time. The next one hundred and fifty thousand, I
• 23:28
  Speaker 7: would take more risk with it. If that's what you
• 23:30
  Speaker 7: want to do. You can allocate that to stock options,
• 23:33
  Speaker 7: you can allocate that to cryptocurrency, to future trading, to
• 23:37
  Speaker 7: a little bit more like risky ETFs not risky, but
• 23:40
  Speaker 7: like you know, like a TAN or IV be if
• 23:42
  Speaker 7: you want to look at like biotech or renewable energy,
• 23:45
  Speaker 7: where I don't want to say it that's risky because
• 23:47
  Speaker 7: I believe in biotech and renewable energy, but it's a
• 23:50
  Speaker 7: lot that goes into play with that, right, It's a
• 23:52
  Speaker 7: lot of variable to the political standpoint, whether it's you know,
• 23:55
  Speaker 7: the drugs work, but biotech industry is still it's still
• 23:59
  Speaker 7: more volatile. In the next ten years, then you know,
• 24:04
  Speaker 7: a QQQ would be or a Franklin Diamond tech point.
• 24:08
  Speaker 7: And then the next one hundred and forty thousand dollars
• 24:10
  Speaker 7: I would have as alternative cash money. So you might
• 24:14
  Speaker 7: want to you know, start a business, or you might
• 24:16
  Speaker 7: want to invest in real estate, or you know, you
• 24:18
  Speaker 7: might want to do a variety of different things outside
• 24:20
  Speaker 7: of just regular investment. That standpoint, I would allocate that
• 24:25
  Speaker 7: so that's my breakdown, that's my million dollar breakdown.
• 24:30
  Speaker 6: That's what percentage of the deal does that give per year,
• 24:34
  Speaker 6: Like what's the average return?
• 24:35
  Speaker 7: Yeah, so it really depends because there's a few different
• 24:39
  Speaker 7: factors on like how long you leave it in. It
• 24:41
  Speaker 7: really depends on really how long you leave it in
• 24:43
  Speaker 7: and the interest rate that that the insurance company pays.
• 24:46
  Speaker 7: So we really have to run what's called like an
• 24:49
  Speaker 7: illustration to actually give like a real spot on answer
• 24:55
  Speaker 7: to that question. But you know, usually it usually will
• 25:01
  Speaker 7: grow in a fixed capacity in around like three to
• 25:04
  Speaker 7: four to five percent annually rate of return on the
• 25:10
  Speaker 7: type of on that type of product. So you can
• 25:11
  Speaker 7: kind of compound that over the course of ten years,
• 25:15
  Speaker 7: thirty years, something like that, and then that's that's what
• 25:17
  Speaker 7: you'll get.
• 25:19
  Speaker 6: And as you guys come into these lumpsums, you want safety,
• 25:21
  Speaker 6: like you think that you will just throw it off
• 25:23
  Speaker 6: to the wind and be like, hey, let me just
• 25:25
  Speaker 6: put it all in one company. But if you lose
• 25:28
  Speaker 6: it and people don't think that financial room can hurt you.
• 25:31
  Speaker 6: But like every recession, people die, commit suicide, people make
• 25:37
  Speaker 6: bad investments, get hurt, like lose your career. So the
• 25:42
  Speaker 6: more money you accumulate the safer that you want to be.
• 25:45
  Speaker 2: I know some of you are in a growth.
• 25:46
  Speaker 6: Phase and you're looking to grow, but even with that,
• 25:49
  Speaker 6: you still need to go look at what the drawdown
• 25:50
  Speaker 6: of those companies are. Because if a company is drawn
• 25:54
  Speaker 6: down twenty eight percent thirty percent every two years, it's
• 25:58
  Speaker 6: not a place that you want to Because what if
• 25:59
  Speaker 6: you hit it hard twenty twenty, twenty twenty one, and
• 26:03
  Speaker 6: next year you put your money into the risky asset set,
• 26:06
  Speaker 6: and now you give up two years of your life
• 26:08
  Speaker 6: and all this hard work and study. The more money
• 26:10
  Speaker 6: you actimulate, please like go to safer vehicles that are
• 26:14
  Speaker 6: available to you.
• 26:16
  Speaker 7: And you know what an another thing too, is that
• 26:20
  Speaker 7: so you can really use that type of formula for
• 26:22
  Speaker 7: any amount of money. Right, if you have a thousand,
• 26:25
  Speaker 7: if you have fifty thousand, right, Like, so what you
• 26:28
  Speaker 7: do is you just you just lower the amount of
• 26:31
  Speaker 7: money relative and how much money you have. So if
• 26:34
  Speaker 7: you have a one hundred thousand, if you have fifty
• 26:36
  Speaker 7: thousand dollars, right, obviously you're not gonna be able to
• 26:38
  Speaker 7: invest four hundred thousand dollars if you have two thousand dollars.
• 26:40
  Speaker 3: But would you would do the same thing.
• 26:42
  Speaker 7: So if you had one hundred thousand, I wouldn't really
• 26:45
  Speaker 7: recommend more than like fifteen percent of that into the
• 26:47
  Speaker 7: more riskier type of investments. So that would mean fifteen
• 26:50
  Speaker 7: thousand dollars will go into your crypto futures options bucket.
• 26:56
  Speaker 7: You might put you know, ten thousand or thirty thousand
• 27:00
  Speaker 7: dollars into your kids college fund, you know. So it's like,
• 27:03
  Speaker 7: if you got ten thousand dollars, you might invest fifteen
• 27:06
  Speaker 7: hundred dollars into bitcoin, and then you might invest three
• 27:10
  Speaker 7: thousand dollars into your kids college fund. So the numbers
• 27:13
  Speaker 7: really aren't the most important thing. Just wanting to use
• 27:16
  Speaker 7: a million dollars because that's a nice round number, and
• 27:18
  Speaker 7: that's something that a lot of people are fired to
• 27:20
  Speaker 7: become millionaires. So it's like, all right, you always head
• 27:22
  Speaker 7: these stories about this athletes entertainers and everybody you know
• 27:25
  Speaker 7: criticizes them. But it's like, all right, when you get there,
• 27:28
  Speaker 7: cause you know you can get there too. It's not
• 27:30
  Speaker 7: like it's impossible to get a million dollars, So yeah,
• 27:34
  Speaker 7: you gotta be paid. Like the worst thing that could
• 27:36
  Speaker 7: happen is that you get there and you're not.
• 27:38
  Speaker 3: Prepared, and then you have no plan. Oh my god, yeah, yeah,
• 27:42
  Speaker 3: what happens from here? You don't have to plan. You're
• 27:45
  Speaker 3: I mean, you're either gonna either gonna two things a
• 27:47
  Speaker 3: gonna happen.
• 27:48
  Speaker 7: You're gonna end up bowing it, or you're gonna be
• 27:49
  Speaker 7: so scared that you're just gonna have it in your
• 27:51
  Speaker 7: savings or frightened, scared out your mind. The worst thing
• 27:55
  Speaker 7: is to be scared with money. And it's like, you
• 27:58
  Speaker 7: have money. You waited your whole life to get money,
• 28:00
  Speaker 7: You've got it, and now you're scared to death because
• 28:03
  Speaker 7: you don't want to lose it.
• 28:05
  Speaker 6: Hold on, yep, there's another game on a side of
• 28:07
  Speaker 6: the fence once you acquire it. I'd rather you guys
• 28:10
  Speaker 6: learned this now than when it's too late and it's
• 28:12
  Speaker 6: it's almost okay now if you have it in cash.
• 28:14
  Speaker 6: But what about what if they bump interest rates to
• 28:17
  Speaker 6: two point eight or three percent? Like inflation is going
• 28:21
  Speaker 6: to eat you alive?
• 28:24
  Speaker 5: My graduates from my school being forced back drop bag drop,
• 28:30
  Speaker 5: Mike drop backdrop drop.
• 28:43
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 28:46
  Speaker 1: in Massachusetts. An MS thirteen gang member from El Salvador
• 28:50
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 28:54
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 28:58
  Speaker 1: some of the heinous migrant criminals caught because of President
• 29:02
  Speaker 1: Donald J. Trump's leadership. I'm Christy Noman, the United States
• 29:06
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 29:11
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 29:14
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 29:18
  Speaker 1: are here illegally, your next you will be fine nearly
• 29:22
  Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
• 29:26
  Speaker 1: never return. But if you register using our CBP home
• 29:29
  Speaker 1: app and leave now, you could be allowed to return legally.
• 29:33
  Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
• 29:38
  Speaker 1: border and families will be protected.
• 29:40
  Speaker 2: Sponsored by the United States Department of Homeland Security.