Welcome to the Roy Matlock Jr. Money and

Business Hour.

Reach Roy at 615-843-2999 or visit

RoyMatlockJr.com.

And now, here's Roy.

Alright, Roy Matlock Jr. here and we are

once again talking money and how to accumulate

it and keep it and avoid the mistakes.

If you tuned in last week, I did

the show on the defense and the defense

is preparing yourself, avoiding mistakes, preparing yourself to

not lose, protecting your income, your assets, things

like that.

And then today, what I'm going to do

is we're going to go on the offense,

which is wealth accumulation.

And so, last week was everything from the

budget to emergency funds to avoiding bad debt,

getting the right insurance to protect your income,

your assets, things like that, defensive positions.

And I believe the defense is a big

part of it.

We want to not dig ourself in a

hole to start our life or at any

time because you don't want to spend the

next, make a few mistakes and then have

to dig out of it for a long

period of time.

And so, what we're doing today is we're

going to make the assumption that you've got

your defense in place and now we're going

to go on the offense and the offense

is going to be asset allocation and investment

advice and things like that, tax advice.

And so, if you would like to do

a phone call with one of our advisors,

you can call 615-843-2999.

It starts with a quick 15 minute kind

of 15 to 20 minute intro call to

see if we're a fix or a fit

for you.

And then, or you can visit RoyMatlockJr.com.

So, let's get started.

I want to start with the debt side.

And one of the things that you can

do when it comes to using debt and

credit, you can do that in a positive

way.

And if you do it in a positive

way, it allows you to grow.

And so, what is the difference in bad

debt and good debt?

Simple bad debt is you can't afford it.

You've stretched yourself.

Number two, it's tied to something that goes

down in value.

All right.

So, cars, credit cards, things like that.

So, we're going to make the assumption now

that you've got your credit in place and

you are doing something that, you know, long

term, I always look at, can I easily

take on the obligation?

And is it going to leverage me to

a better position?

So, good debt is considered an investment in

your future, helping you increase your wealth, improve

your quality of life, gain assets to appreciate

over time.

So, let's think about this.

A mortgage, you know, for the most part,

if you borrow correctly and you have a

mortgage that you can afford over a period

of time, what's going to happen is you're

going to have a house that appreciates and

it's a place to live.

And as a result of that, you at

some point in time will accumulate equity, either

through appreciation or paying it down, and it's

easily affordable.

So, that's an example of good debt.

All right.

Now, what would be a mortgage that is

bad debt?

Well, number one, you stretch yourself to where,

you know, you're living on boxes and cardboard

boxes are your furniture and you are stretched.

And if anything ever happened to your current

income because you didn't have an emergency fund

or anything like that, you get foreclosed.

That's bad debt.

All right.

So, we want to always look at it

that way.

Student loans.

You know, if you can go to a

college or a trade school, whatever it may

be, and you borrow money in order to

get an additional degree that will allow you

to get a return on investment.

My daughter went and, you know, I paid

for her college.

She went and got her master's degree and

the rates were so low, it was better

to borrow the money to get her master's.

And it ends up becoming a good investment.

If you can go spend a few hundred

dollars a month on a student loan and

it leads to you making an extra 15

or $20,000 a year because you have

a master's degree, that's good debt.

Business loans fall into the good debt.

Again, you've got to be able to easily

pay for it.

But if you can buy a piece of

equipment and it ends up, you know, making

you money, that could be an example, allow

you to grow your business, expand your business,

do things like that.

You know, things of that nature, home equity

lines of credit or opportunity money.

If you've bought houses in the last 10

years, especially in this area, chances are you've

got some equity, it's low interest finance to

own your house.

Maybe you've got a 3% loan that

you don't want to pay off.

I would never do that.

And so you want to maintain that just

paying your payment.

But then you say, wow, I've got all

this equity tied up.

Why wouldn't you get an equity line of

credit?

I tell people to do that for two

reasons.

One is to do it as a big

emergency fund.

So that means if you had something and

you know, the banks will loan you money

when you don't need it, when you need

it, they don't loan you money.

And so you go get you an equity

line of credit and you don't use it.

So let's say you've got a house, it's

worth 600 and you owe 200 on it.

They'll, you generally, if your income is, will

support it, they'll probably loan you up to

75, 80% of your value.

So if you owe 200 and your house

is worth 600, you've probably got close to

$300,000 in available credit, set it up.

And then that way, if an opportunity comes

along, you can do something.

I mean, if I came to you right

now and I said, Hey, I got something,

you give me 50 grand, I'll turn around

and give you a hundred back.

And you don't have the 50 grand, then

that's called opportunity cost.

You didn't have the money.

So if you had an equity line of

credit, so that's good debt examples.

I want to start it with that because,

you know, we came off of last week,

the bad, you know, the, the defense, what

I would look at is if you want

to really start from A to Z on

the plan, go to Roy, not like junior

.com and take a look at last week's

podcast.

Everything is there where you can find it

on any of your, your podcast, a Spotify,

all that stuff.

It's, uh, under the Roy Matlack junior money

and business hours.

So now what we've done is we've put

together a plan to get started.

And when, when I look with P when

I meet with people, my goal is, is

to get people educated, give them good advice.

We then create a defense to keep them

from losing, protect income and assets.

And we go on an offense and the

offense is to grow wealth and things like

that.

Then what we would then do is go

into the product marketplace.

And in the case with me, I'm a

fiduciary.

And so I have access to every investment

product and pretty much the same holds true

when it comes to insurance and things like

that.

And then we would go out and we'd

match up, you know, the products to, to

your, you know, stage in life.

If you're younger, you'll probably more aggressive.

If you're older, probably less aggressive and so

on.

And then we start looking at ways to

free up money to save to where we

can go out and start, you know, automating

our investment plan and our financial independence or

financial independence number.

It's easy.

We come up with our number and I

can show you that.

And then once we do that, we go

and put together an automated plan to do

it.

Visit Roy Matlock jr.com.

If you'd like to schedule a free review,

we'll be right back.

All right.

We're back a segment to Roy Matlock jr.

here, and we are going through the offense,

which is growing wealth.

And, you know, it's kind of, we're going

to get into a lot of stuff as

it relates to advice, as it relates to

your investments and tax savings and things like

that.

But I wanted to bring this up.

If you've ever thought, if you, if you're

listening to the show and you're a connected

person and you might be thinking about money

more than the average person, would you ever

consider becoming a financial advisor?

Because we train people to do that.

And at RMJ advisors, we're building the next

generation of financial professionals and we provide full

training, licensing support, you know, mentorship, all of

it.

You can do straight, straight from home.

So if you're driven, maybe you're a business

owner, you're real estate agent or mortgage person,

or you're just in sales or you just

are great with people.

You should go to Roy Matlock jr.

and click the button, become an advisor.

We have a short video that will outline

a little bit about what we do.

So think about that, or you can call

615-843-2999 to find out more details

on that.

So what we're doing right now is we're

going through the offense.

We just finished up in the previous segment,

how you use debt to benefit yourself.

All debt is not bad.

Borrowing money to make money as long as

you can afford it is good.

So we talked about that.

Now I'm going to get into some typical

investment advice that, that kind of build my

whole practice around.

The first one is we determine risk tolerance.

Now determining risk tolerance is when I meet

with someone or any of my advisors do,

we'll evaluate your comfort.

All right.

And based on your financial goals, your time

horizon, uh, if you're young with decades before

you retire, you probably can afford more risk.

Whereas if you're nearing retirement, maybe more conservative

in the investments.

We also look at what are you currently

doing?

You know, so if I meet somebody and

you know, they're like me, I've never had

a job.

I've always owned a business.

So, uh, pretty well, you can assume I'm

a bigger risk taker than the average, average

person.

Uh, then I'm probably going to be talking

with someone and say, Hey, you've been, you

know, previously you've taken on more risk and

things like that.

Is this something that you want to continue

on your investment side?

Or is it something you want to have

separate, uh, more conservative outlook on your investments

versus what you're doing for your living or

your business or something like that.

And so we talk about those kinds of

things.

I also have asked people, you know, if

the market were to take a 20%

dip right now, how would you feel about

that?

And it's funny when I ask people that

one of them will say, that's great, man.

I'll, I'll buy, I'll be buying in.

That'll be a great opportunity.

And then other people, you can just see

them kind of sigh that they wouldn't be

that happy about that.

They don't look at it as an opportunity.

And so we start talking to people, get

to know people and the best return on

your money is the, the most amount of

risk that doesn't cause you to, um, panic

and, you know, call and say, Hey, we

got to get out of this or whatever

it may be.

And so we kind of do that.

Then what we do is we diversify.

So we start with risk tolerance.

Then we look at diversifying and that allows

us to have different types of investments.

So when one goes down, the other one

is steady.

Uh, that kind of thing that stocks, bonds,

insurance, you know, even if you had real

estate, uh, if you are, um, thinking about

that, um, you know, that would be another,

another Avenue that you start diversifying.

So we diversify.

Uh, we look at low cost options, uh,

to do this.

Uh, if you, you may be in a

managed account, like a mutual fund, professional money

management, or we may do, uh, ETFs, which

have a little bit better, uh, tax, you

know, um, opportunity.

If you're in something that's not qualified, um,

any retirement plans, uh, we didn't rebalance the

portfolio periodically.

Uh, if we have big moves in the

market, we may rebalance or typically, uh, if

we are trying to keep a 60 40

portfolio stock bond, then we're going to, when

we do annual reviews, we'll take a look

at that and, and decide if we are

pulling money.

Uh, I tend to, when the market, we

have big up markets, like right now, I'm

probably going to pull from the up markets.

I'm going to sell at the top with

the idea of providing income, say for this

coming year.

Uh, if we have a down market, we

would probably look at the bond portion, uh,

which would be more conservative and use that

to provide the income or even some cash,

whatever it may be.

So now what we're doing is we determine

the risk tolerance.

We diversify the portfolio.

We look at low costs, uh, alternatives, um,

you know, to where you get, you know,

you're not paying a big management fee to

an investment firm that might even not even,

uh, outperform the market.

We rebalance.

So now we're moving along.

Uh, we're going to focus on high growth

investments early when building wealth, uh, focus on

investments, high growth, potential stocks.

You know, um, you may be a hundred

percent of the market.

Uh, and the idea behind that when you're

young is, is that every time the market

goes down, you're buying, we believe in dollar

cost averaging, uh, which allows us to be

consistently buying more shares, uh, when it's discounted.

So we buy more discounted shares and less

over higher price shares with the idea that

you get a lower cost over time.

So what I believe is this, we, when

we first get started, we look at a

goal and if the goal is to accumulate

X, uh, then what we do then is

we put that number, we put a time

horizon, that's the goal.

And then we look at when we want

to get there, what's realistic 20 years from

now, 30 years, whatever it may be.

And then we come up with some assumed

interest rates.

We think we can get this or this

or this.

And then from there, we have a financial

independence number.

If you go to Roy Matlock jr.com,

we have put together, uh, your fin, uh,

number.

Uh, and if you go in there under

the resources, uh, we have put together a

cool deal that you can actually go to

the website.

And, and if you go up to the

resources page at the top under financial planning

and you go and you'll find, uh, financial

calculators and it's the retirement plan or retirement

savings goal calculator.

And when you click on that, you'll be

able to go in there and says, how

much do you have now?

Uh, how much do you think you'll need

after taxes?

Okay.

When you retire, what is, uh, the annual

income you expect to receive from other sources

like social security, whatever it may be pension.

We put your age, we put your goal.

Uh, it calculates all this.

We're going to retire, you know, at what

age and we're going to estimate a tax

rate and it's going to say, okay, here

is your financial independence number.

Uh, 30 years, $682 a month.

If you get 10% on your money

or 9% on your money, you will

be where you want to be.

And we inflate it.

We do all that kind of stuff, every

bit of it, but you can go to

the retirement calculator and it's sitting, uh, on

Roy Matlock jr.com in the resources.

All right.

So now what we're doing is, is we

are, um, setting up, you know, the, uh,

risk tolerance.

We got, uh, the time horizon.

We're rebalancing.

Uh, we're doing all these kinds of things.

We adjust accordingly as our life changes.

Uh, we become different.

You know, I, one of the things that

I do on the advice side, as I

look at what you have saved now, let's

say you're in your mid fifties, late fifties,

and you've got a million bucks in your

retirement account and you're putting $20,000 a

year and you expect to work another five

years.

So you're going to put in a hundred

grand, but you already got a million.

So we're going to do two things.

We're going to make the, uh, big amount,

the million dollars.

We're going to probably be more conservative with

that.

Uh, because that's the most important thing you

have, but on the, uh, investments that you're

putting in monthly, we may be doing, uh,

you know, uh, growth investments to take advantage

of dollar cost averaging and so on.

So we're going to adjust that, uh, accordingly.

Uh, we've got our goal factor and undesired

lifestyle, inflation, life expectancy.

We use the online calculator.

You can do that at Roy Mountlake jr

.com.

Then we're going to decide which tax advantage

accounts that we're going to put our money

in.

Are we going to put it into pre

-tax or after-tax you've got matching funds

through your job, potentially a 401k, 403b, et

cetera, 457.

Uh, we have Roth IRAs that we can

do stuff with.

And so we're starting to put together this

plan and it's just kind of a, here

we go, this is where it is.

Step number one, step number two, step number

three.

We're going to check the boxes off and

put yourself in a good position.

My name is Roy Mountlake jr.

If you would like to speak with one

of our advisors, a phone call is free

6 1 5 8 4 3 29 99.

We'll be right back.

All right.

Roy Mountlake jr.

Here.

And, uh, we're going to segment three and,

um, we're talking about retirement planning and we're

going to get into some of the other

stuff, college plannings, different things like that, but

the, um, so now we're setting our retirement

goals and if you just tuned in, you

can go to Roy Mountlake jr.com and

find out exactly what the, uh, your N

number is financial independence number in our resource

tab, calculate where you're at now, what you've

saved, put in the interest rates, stuff like

that.

It's just a tool to help you plan.

Um, you know, everything you do, if you

put it on paper, um, it gets better.

If you look at it every day, it

gets better.

It's just called managing anything you manage, I

think improves about 20%.

And so some things like your financial plan,

if you've got a plan, I mean, you

know, I'm one of these guys that I

get up in the morning.

I look at my stuff every day.

I mean, that's what I do.

And a lot of people, you know, I

tell them if it bothers you, um, you

didn't don't do that, but for me, I

like to see, um, you know, I look

at where I'm at.

You know, I've been doing that for years.

I'm, you know, my bank balances, I get

a text every morning.

You know, that's just the way I operate,

but because of that, I manage it.

And, uh, I look at stuff and I

catch stuff and you know, that's the way

you do it.

But anyway, um, so now what we're doing,

we got retirement goals.

We're going to choose the right account.

Uh, you've got after tax money that is

gross tax free.

That's a Roth or a Roth 401k, four

or three day, whatever it may be.

And then you've got pre-tax, uh, where

you can take a deduction now, but you

pay taxes later.

And, uh, if you do a, uh, pre

-tax account, you're going to have to start

paying, uh, drawing on it at age 73,

pretty much all of your retirement accounts, anything

you get tax deferral on, you're going to

need to leave it to 59 and a

half, or you're going to get penalized if

you pull it out.

Roths do have some little, you know, where

you leave it in five years, you can

pull your principal out.

But the point being is, is that all

of the things that you get deductions and

deferral on have got some rules to it.

You know, Ross, you pay the taxes now

and you don't pay it later.

Uh, you got 59 and a half.

If you do pre-tax traditional, whatever it

may be, um, you can get a deduction

now and then, uh, but you pay taxes

later, a lot of times I'll tell people,

how do you determine, should you do a

Roth or should you do a pre-tax?

A lot of it has to do with

when you get started, you know, if you're

young and you're, uh, you know, starting out

saving money, you're going to have a big,

you know, big, big account later, a Roth

may make more sense because it's potentially possible

that if you, uh, retire, you're going to

have your income go up, all right.

If you had a traditional IRA, but the

other side is, is that, you know, if

you're, uh, waiting, um, you were behind maybe,

and you have a good income, uh, it's

possible that your tax deduction today will be

more valuable than, um, waiting.

So why not deduct it?

Now I tell people in many cases, you

can buy one, get one free.

So you can go throw in, let's say

you're in your fifties and you, uh, put

in the, uh, maximum, which is including your

catch up, which is 24, five is your,

your below 50, and then you get an

$8,000 catch up.

So you're at 32,500.

You can put in.

Well, if you're a high income earner, here's

what you would do.

You would put in 32, five and deduct

it.

That'll save you about 10,000 bucks at

10,000 bucks.

You can throw it into a backdoor Roth

IRA and put 8,600 in.

And now what you did is you bought

one and got one free.

Now what you did is you've got your

deductible retirement account.

You got your matching funds, all the kind

of stuff that goes on like that.

But then the tax savings alone ended up

funding a tax-free Roth IRA.

So we do things like that.

And the way we determine that is we

project your income, uh, when you retire versus

your income now.

And I see it many times where, you

know, people waited, but then their income is

really up now.

So they're getting a bigger tax deduction.

So it may make more sense that way.

We also, uh, look at it, uh, when

you retire, you know, how, what's social security

going to mean to you if you have

a lot of money, uh, you know, Ross

getting some conversions as possible.

You don't pay any taxes, um, on your,

uh, social security.

So there's all these different things that we

do.

There's other options like health savings accounts.

In many cases, if you have high deductible

plans, you can put up to a married

over 8,000 a year into that 4

,000, a little over 4,000.

If you are single, uh, and then what

we do, we want to maximize our contributions

if at all possible at very minimum, we

want to make sure that we're getting our,

our matching funds.

That's free money.

If I put in, if the company tells

me they're giving me 3%.

A match.

Well, that's a, that's free money.

I put in three and I get three,

that's a hundred percent return right off the

bat.

And so I want to do that.

Then as a moving closer to retirement, I'm

going to decide when it takes social security,

generally speaking, the sooner you take it, uh,

the better if you're not working.

If you are working, I generally will tell

people to wait until they're full social security

age at 67, even if they're continuing to

work.

And then what we do is we just

draft the social security payment into an investment.

A rule of thumb, if you wait from

66 and a half, whatever it is, 70,

typically the increase you'll get at 70 is

about 10 years of income before you'll be

able to catch up.

And who knows?

I mean, uh, that doesn't include investments.

And so I tend to tell people, take

it and let's take the social security and,

uh, save it.

Many cases, if you take social security allows

you to put it into a deductible account

and now what did you get?

You got social security, you deducted.

I mean, there's just a lot of ways

to do stuff like that.

Uh, when we, we retire, we start looking

at different, um, places.

We're going to get our income from some

of you have pensions.

I met with a police officer just this

week, been a client of mine for a

long time.

He's got a pension and he's got, you

know, going to have social security.

He's going to have, um, um, investment income.

You know, we may throw some annuities in

there, but the long and short of it

is, is that we've got three or four

different income streams.

Maybe you have a business you're going to

sell, or maybe you have a business that

you're going to keep and it's going to

provide you that.

Then we look at, uh, how much can

we withdraw, uh, in order to, um, be

safe.

Uh, what is a safe withdrawal amount?

That's when we bring annuities in, uh, to

the mix and you know, here's, here's what

an annuity does.

An annuity gives you a lifetime income could

be a joint life income.

If you're married, you can buy it to

do that.

And that means it'll pay for as long

as either one of you live.

When you buy an annuity, the mindset is,

is that we're going to take this money

and we're going to turn it over to

an insurance company and they are going to

give us a lifetime income.

But the idea behind it is we hope

there's no money left in that.

And the reason we hope that is, is

that we outlived our money.

We got into the insurance company's pocket.

The benefit of an annuity is it allows

you to pull more money without the fear

of bad markets.

And then what happens, your money goes away

and your income stops.

So, and, uh, the primary reason if you're

at retirement, you buy an annuity is to

offset the risk of living too long and,

um, and that is what an annuity is

for now.

Are we going to put all of your

money in an annuity?

Absolutely not.

It might be a third of your money,

whatever it may be, depending on where you're

at.

Then the rest of it is your inheritance

and your inflation guard.

So if we have money, uh, that we

know we have social security and we have

a guarantee already set up in the annuity,

then at that point, we're in a good

position at a couple of just recently, they

have 4,400 a month in a new

and social security coming in.

We put 200,000 into an annuity.

They got them 1600 a month.

Now they have 6,000 a month in

their house has paid for the rest of

the money, we stuck it into a 75

25 stock bond portfolio, which allows us to

add income later when inflation kicks in.

And if we have 75%, that's a good

growth model.

Uh, 25% is in a bond.

So if we have a down market and

they needed more money, we'd pull the bond,

but the idea is that's going to, that's

going to be the inheritance and we got

a guaranteed income coming in.

So now this is kind of the way

planning works.

When you get into your retirement, we look

at, okay, what is the best way to

deal with our taxes when we retire?

Uh, should we convert, uh, some of our,

uh, retirement plans to Roth IRAs now that

our income's down.

And so a lot of times that's what

we'll do there.

Um, all these different things go into putting

the plan together, uh, with the idea that

one day, um, you know, you're going to

retire and you want to be able to

have a secure and comfortable retirement.

You want to be able to not worry

about whether or not you're going to be

okay.

I mean, that's what it's all about.

And that's why we work and we save

and we put aside our money with one

day we are comfortable.

So my name is Roy Matlock Jr. If

you would like a review, call 615-843

-2999 last segment coming up.

All right.

Roy Matlock Jr. Here last segment.

And we've been talking about the offense and,

uh, really it's going to go into two

different shows.

If you want to go to roymatlockjr.com

or the Roy Matlock Jr. Money and Business

Hour, you can get the podcast.

And last week we did the defense.

Today's the offense.

And I've been really, you know, it took

an hour on the defense.

Now I think I'm going to end up

taking, you know, two hours almost on the

offense, so very detailed on putting together a

financial plan.

And so if you would like help, uh,

actually implementing, uh, what we teach, uh, just

reach out to roymatlockjr.com and schedule a,

uh, review or do any of the downloads,

or you can call 615-843-2999, which

you, uh, straightened out and ready to go

and automate it.

So now we've talked about different retirement plans.

You know, what should you do?

How do you follow a safe retirement route?

You know, I talked about, uh, annuities.

I've talked about 401ks, when to draw social

security, a couple other things that I want

to hit that are important.

Uh, and that's a college, uh, educational savings

accounts.

So one of the things that you can

do is utilize 529 or what's called an

ESA.

You also have something called a, uh, um,

ATMA or UGMA, depending on the state uniform

gift or uniform transfer, uh, to mine or

some, you can, but basically what it is,

is, is if you put it into 529,

it can have been, it's used for college,

it grows tax-free.

It eventually can turn into almost like a

Roth IRA, uh, for quality, but use it

for qualified educational expenses.

So if you start young, um, you put

that in and you let it grow tax

-free.

It's used for college though.

You can also move it from one beneficiary

to the next.

So let's say one of them, your kids

get a scholarship and the other, uh, doesn't,

you can move it.

And so it's really kind of very flexible

that way.

You can also do custodial accounts.

It's where you, uh, uh, put money aside.

It gets favorable tax treatment.

Um, but you are the custodian and depending

on the state, uh, they get access to

it between 18 and 25 years old, uh,

depending on who, um, which state you're in

and so, um, for instance, that money, uh,

could be set aside into a fund and

your mindset is, well, I'm going to give

them that money with the intention that, you

know, when they get out on their own,

they can buy a I had one of

my clients years ago, uh, it was a

combination of custodial plan.

And then on top of that, he worked

at Wendy's and he put aside money as

a 16 year old, actually before 16.

He was one of those guys that was

all into it, saving his money and put

it in there and I did, uh, probably

15 years later, I had a big investment,

uh, seminar and he stood up and, um,

he, he told me, you know, I recognized

who he was and he said, Hey, I

just want you to know that money I

accumulated, uh, while I was a kid, uh,

I just paid, put a down payment on

a house and I've got $29,000 left

over and he was in his late twenties,

uh, at the time.

And I'm like, Hey, you know, you, um,

go and teach your kids young, uh, what

to do.

One of the things that I've always recommended

is, um, I did this with my kids

is, uh, I pulled in a mutual fund

company up and I told him, I said,

I want you to look at these different,

different choices and I want you to click

on it and I want you to look

at the companies that they own.

And then once you do that, I want

you to tell me which one you want

to go into.

So I showed him all these growth funds

and stuff like that.

And one of them, um, he looked at

it and he said, oh, there's GameStop.

They have a GameStop, you know?

And so anyway, they, he went through that

and he went through some other ones and

we bought that fund.

And that was one of the funds that

we set up.

You put $250 in it and you can

add to it anytime.

You know, normally you've been, you know, when

you're a kid, you know, it's like they

take you to the bank and it's a

big deal, you get your bank account.

And so in this case, rather than take

them to the bank, um, get all your

kids and grandkids investing, you know, show them

how it works and we do those accounts

for 250 bucks, and then if you have

a checking account added to it, you can

add any amount of money to it anytime

and, uh, you can look at it and

teach and learn investments, that kind of stuff.

So those are things that, you know, I've

always done.

I did a family financial workshop.

It came one day as a result of,

uh, had one of my nieces.

Um, we've got, my mother just passed away

at one Oh two.

And, um, you know, we had five generations.

She was born in 1923 and we had

a, um, one of the babies, uh, was

born in 2023 and, you know, there's kids

running around everywhere.

I got five, three sisters and a brother.

And so anyway, I thought, man, all these

little kids, I need to have an account.

And so I did a family financial workshop

and I gifted, uh, to every one of

the kids on those 27 of them, a

$250 account.

And from there I thought, man, everybody should

know that, but they had to show up

if they're teenagers and, um, you know, showed

them how it worked and stuff like that.

And, um, so we did a bunch of

those.

Well, what ended up happening, um, was it

evolved into doing family financial workshops.

And we did a big one online.

We had about 4,000 people attend one

of our webinars, uh, where we encouraged teenagers

and so, uh, to jump in with their

parents and now for our clients and for

any of you that have a big family,

we would do something like that for you.

A family financial workshop.

If they're 10, 11, 12 years old, they

can learn, you know, uh, how one of

these things works and, uh, and you get

everything set up and you can do a

family, you know, generational type thing.

So that's what we do there.

So let's talk about the, uh, the key

points of the offense.

The first one is pay yourself first.

What does that mean?

We want to make sure that every month

we have an automated, um, you know, draft

coming out of your account.

Uh, 50 bucks a month at 9%, it's

about a quarter million dollars over 40 years.

Uh, if you say to yourself right now,

what's an extra 250,000 mean to me

right now, that's 50 bucks a month over

40 years.

And so we pay ourself first.

How do we do that?

We have automated plans, either out of our

checking account or maybe through a retirement account,

uh, through our work.

If it's, if it's available, uh, we need

to understand compound interest.

Compounding periods matter.

If you get 4% on your money,

it doubles in 18 years.

If you get 12% on your money,

it doubles in six years and so on.

It's called the rule of 72.

Once you learn that you look at making

a purchase.

I was talking to someone, they were talking

about spending $17,000.

I thought it was a bad idea.

I said, just keep in mind over 30

years, uh, that's 500,000 that, that that

17,000 is costing you.

Now it doesn't mean that we're not going

to save money and invest money and have

fun too.

But the rule of thumb is, is that

you ought to have a goal, uh, to

save 25% of your income at a

minimum to get, to get yourself in a

good spot, 10%, assuming that you do some

things that absolutely matter, which is understand compound

interest, get a good rate of return, give

it, give yourself time.

And what I mean by that is start

now.

And I ask people, when do you think

the best time to start today, tomorrow, or

let's wait 10 years.

No, let's do it now.

All right.

Uh, then, so we got compounded rate of

return.

Uh, we got, uh, time and consistency, and

then we will look at diversification is another

part of the offense when it comes to

investment.

Uh, diversification is, you know, put it across

different asset classes.

It's like when someone's young and getting started,

we may be all in growth funds, but

we may have an international fund.

We may have a large cap growth fund,

a small cap growth fund, you know, mid

cap growth fund, whatever it may be.

And so what we're doing is we're diversifying

across different asset classes, then we rebalance it.

Uh, we look at tax planning.

That's part of, of how we do things.

You know, what makes sense?

Maybe we should put this money aside.

We're never going to use it.

We don't think let's put it into like

a, an annuity, a variable annuity, or it's

called a Ryla.

Both of those have market upside, some downside

risk or some protected downside risk or all

of the risks, depending on what you want

to do.

I have a variable annuities that, you know,

put in, I saw one of them, I

put in a 50 grand and it grew

to like 130 grand over a six or

seven year period.

And it compounded, uh, out like that tax

deferred.

And so things like that, I look at,

why do I want to pay taxes on

money I'm not using?

Uh, if you want to make a charitable

contribution, you can make it from your retirement

account, uh, and that way you're not paying

taxes.

Uh, on, if you have a traditional IRA,

you can move money from your traditional IRA

and donate it to the church churches, um,

um, charitable contribution, and you don't have to

pay taxes on it.

Now, if you take it out of your

IRA, you pay your taxes and then you

make the donation.

All right.

This way you get your donation tax deduction

and you don't pay taxes on it when

you pull it out.

So it's things like that.

If you're doing charitable given.

So when I'm looking at the overall picture,

I'm looking at investment recommendations, retirement recommendations, college

planning, I'm looking at tax strategies to be

able to, you know, do the most tax

sufficient way of doing things.

I look at wealth transfer and legacy planning.

You know, one of the things that I

did, I worked with my mom and dad.

And, um, you know, what a story, um,

they retired, uh, 40 years ago.

And, uh, you know, we saw, you know,

I just started in the business, um, doing

advisory and I set them up.

And the cool part was, was my mother

lived at one Oh two.

And I always tell people that, uh, the

great news, she lived at one Oh two,

the even better news is she had no

financial worries during that time.

She didn't run out of money when she

was 85 or anything like that.

And so, um, how do we do that?

We put together good investment strategies.

Uh, we put together, um, living trust, revocable,

living trust, healthcare, power of attorneys, financial power,

attorneys, uh, living will.

All of the things were in place from

the very beginning.

We, um, took that money, put it into,

uh, an irrevocable trust, which is like a

trust fund.

Why did we do that?

When my father passed, we did that because

that is income and asset protection.

So, uh, there's so many things that go

into making it make sense.

And so what we do, we look at

the strategies and we go from the least,

uh, aggressive and we have a piece of

that maybe in a money market or a

government bond, something like that.

Uh, we look at tax there's possible.

We have some tax accumulate, uh, tax-free

stuff, uh, all the way to the most

aggressive, uh, type investments.

So that's how we go and we put

things together.

But the old mindset is, is you become

an owner, not a loaner.

You don't just loan, loan your money to

the bank.

Uh, the bank makes a spread.

Why wouldn't you just own the bank?

How do you own the bank?

The bank's got a system.

Uh, they borrow the money at 3%

or zero, depending on what it, what they

pay you.

And then they load into someone at 21

% on a credit card and they make

the spread.

I think they make more money than, uh,

than, uh, the saver does.

So why wouldn't you own the bank?

How would you do that?

Well, we go in and we buy stock

in the bank, but we don't know which

bank to buy.

So we hire professional money managers to do

that kind of stuff.

And so if you're tuning in right now,

I'm going to give you all the resources

you can do.

If you go to, uh, roymountlankjr.com, go

to the calculators and you just go to

financial planning and resources.

And then down at the bottom, you'll see

the financial calculator.

It will tell you how much insurance you

need.

It'll tell you how much you need to

save for retirement, or you can schedule a

call at 6 1 5 8 4 3

29 99.

Talk to you next week.