How to Start Investing Beyond Your 401(k)

Hey, hey, hey, how do I sound Mandra struggle bus?

That's how you sound a little bit of the struggle bus. How are you?

For those who don't recognize, this is Tiffany.

This is Mandy, and this is brown and ysician.

I know, honestly, So every year I usually have one really bad cold and it typically takes my voice.

And this is that time. I got back yesterday. But it's clearly not fully in. So you know, here we are.

I was like, we're back from vacation. We're gonna like sound like we have a new lease on life.

And here I'm sounding like you know, the frog Prince and I Now, honestly, I don't feel bad, which is good. It's just that I just sound crazy and so I mean, it's just it's the last leg of this cold. So you know, if you guys can bear with me. How was your weekend or how was your your time away?

Oh? I didn't actually go anywhere, that's funny. I did book a vacation, a kind of. I booked a flight. That's something, right. I haven't actually planned we know where we're going, we just haven't planned anything like lodging or activities. But like it's nice to know that I booked something.

Do you mind sharing? Where are you guys going?

We're going to do a little road trip from Seattle. I have a friend in Seattle who lives there, and we're going to do a road trip from Seattle and I want to see the rainforest and then we're going to go to Vancouver, like the British Islands. I've heard it's really nice up there.

Ooh, that's nice. It's like you ever watch like Anne of green Gables.

I never watched it, but I read the books when I was little.

Yeah, I forget what like that. I don't know if that's the same.

I'm probably like people who are probably Canadian are like, oh god, girl, no that's not like the same.

But anyway, Canadian, Yeah it was.

It was taped in some place in Canada that was really pretty, and I remember this travel group that was a part of There was a woman who lived in that kind of area and she was like, oh, you should come one day, it's really beautiful.

So well, maybe I'll do the and New green Gables tour. If you guys know anything to do in Vancouver or in Seattle, let me know, because I honestly have a zero time to plan other than I bought the flights.

But I just heard it's really pretty, So that's I've never been to Seattle before.

Other things have been so the reason I haven't really been able to go anywhere it is like work's been crazy. But we finally finally were able to start.

On I saw, I saw. I was like, lucky you. Actually I was gonna I'm have to hit you up. Like so I got my contract from finally we picked the contractor and we got the contract, but I'm like, I wanted to make sure were there any components that I should really look out for in our contract? We literally just got it this morning so we could talk offline about that. But I was like, ooh, let me ask Andy if there's some key things I should know.

Yeah, our I love our contractor. I mean, knock on what it's only been like a week, not even a full week. I don't think since they start. I think it's a week tomorrow. But he's been super communicative and I think he's He's the kind of person I wouldn't mind getting bad news from.

Okay, but I don't know.

It was like the month it took us to get the permit approved. It was like do it. It was nothing happening for so long, and I was so frustrated. And then the day after Labor Day, we get a text from Javier, our contractor, and he's like, you guys ready, and I was like yes, and he said how soon

I know.

That's what I've heard, like honestly that like once she gets started, it's like, so I'm excited about like we're supposed to start. I mean, we're going to apply for permits now, but we would start like I think like October fifteenth.

That's like cause he's projecting, because same.

Thing, we have to wait for permits. But I'm just excited. I mean, I was hoping to be in there by Christmas. At this point, I'm just can't wait to be in there.

But on good news.

Like, I don't know if you saw that I have this trip going to Morocco for next year.

I think that was the last thing we talked about on our last show. You talked about planning that trip. Yeah.

Yeah, well I'm not planning anything.

I'm sorry, you know what I mean.

Yeah, but it sold out. I couldn't believe it. I'm like, people really want to go to Morocco to come see me. I mean, we put it up a week and I say, look the company, the runway experience. I said, I'm going to be honest. I mean, it sounds like an awesome idea. I've been to Morocco before for my birthday one year and it's amazing. But I don't really see people going to come to Morocco talk about money with me.

But if y'all want to do it, hey, I'm down.

And a week later we sold out, So I'm super excited about forty people and so I know, so I'm excited, and you know, if this goes well, which I'm sure it will, I'd love to do something like this, like you know, once a year, once every other year, because like, who doesn't love to travel?

And if y'all want to talk about money while traveling. I could do that.

So I missed my chance. It's too late for me to sign up to go to Morocco legit.

Some of my friends were like, but wait, why didn't you tell me? I'm like, I didn't. Who knew, girl, I didn't. I mean I don't want to go to Marco with myself.

I mean not like that, but like I just I honestly thought, Okay, ten fifteen people somehow you know, might want to come, and you know, maybe in a month or so. But yeah, I'm just honestly I'm excited to see because it's this company, the Runway Experience has a really great reputation for hosting really amazing experiences and so it's a full week. So but that's what's exciting about it is that we'll get to really expel experience Morocco versus like, oh, there for a few days and you go home.

You know, Yeah that sounds awesome. Yeah, congressmus International Speaker.

Does this make me?

I remember one time, like when I first started off, I was like trying to like claim the International Speaker r. Also, when I went to Nigeria to visit my cousins, I was like come sit for this this quick budgeting lesson so I can call myself an international speaker.

I think this is legit. When you're selling out stadiums in Morocco.

Your stadium that was, they are now stadiums.

Stadium sized classrooms.

Oh so well, on a not as fun note, why did I get like fussed out by this company because dream Catchers didn't want to buy their product or service? And this person basically said like dream Catchers didn't want better for themselves and didn't want to invest in themselves.

And I'm reading it like.

Wait, what can we say what company? It is?

No, because we kind of both know the person.

So oh, I know what you're talking about.

Yeah, it was really bad.

That was actually a surprised and you know, I really had to be like, you know what, I can understand the frustration of your wanting. Obviously, everybody wants to run a business and you want to be successful.

But I did a little digger deeping because at first I was really mad.

But I did a little digging, and you know, I reached out to some folks who experienced, you know, the company, and they were like, it wasn't bad, but it was just that I didn't get anything in order to take the leap to purchase because I was thinking to myself, you know, there was some some gross blanket statements like they didn't want to invest in themselves.

And I'm like, well, that's just not true.

I mean, I mean, you know firsthand when I you know, when it was just Magnify money, but that you.

Know that they purchased products and services all the time.

But I've kind of to me the rule of thumb for myself, and what I kind of teach them is that look for a company that's looking to invest in you before you invest in them, meaning like you know, like am I learning something? Is there is there an educational component versus me just buying, you know, And so I think that part not that that company doesn't do that, but they didn't illustrate that beforehand, and as a result,

Like what? And I thought to myself it was just.

Like a really good eye opener in that you know, you have to be mindful about who you I mean, I'm always really careful about who I share my audience with. That's that's why this was really disappointing, because this is

That there is no place for judgment in service. There just isn't. In my this is what I believe, and I won't allow it. And I told her that.

I was like, look, I feel you, I mean, fellow CEO to see, I get you, girl, but I can't let you talk crazy about my audience like you know, like and especially the way you're talking, and I'm like, yo, this is not unique to them.

It read very much like you and you and them over there, And I was like ho ho ho.

It was very borderline, like, uh, what do we saying?

Your people? You people?

Yeah, it was you know, not fully and I won't, you know, because I hate to throw that averyund but it felt like that and I never felt that like from someone you know, and honestly, it was really disappointing. And then it was like, you're not doing a good job, Tiffany, and I was like, you know what, I don't mind critiquing criticism, but like, one thing I always's why I'm so glad we have a guest today. But one thing I always say is that my expertise is not everything.

So that's why I look for partnerships.

So yes, it's because she was like, I don't think you're able to take your.

Audience at the next level. And I don't disagree, but that's why I partner.

But I just thought it was like, honestly, it was me and spirited, and I just had to remind her that like, just because people are not willing to invest in your things, it doesn't mean that they're not willing to invest in themselves. It's those are two separate things. And it was just really disappointing, but also very eye opening.

It reminds me of like, I love that show on CNBC called The Profit where Marcus Lamniz goes into struggling small businesses and tries to save them, and all these businesses are dysfunctional in some way, and almost every episode the business owner is like in denial and tries to blame their lack of success on like people around them or the customers. They surgers dumb, they don't know, this isn't this is the best thing ever. But people just

And then I think it's a great service.

So I'm hopeful that like and it's a needed one, and one especially in our in our you know, profession, it's one that's like, honestly, most people don't want to take up.

And so I was really excited.

So I think that there's still something there and hopefully, like I feel like it's better left said like in person, because I was like, you know what, I've already said my piece, and you know, I definitely I mean, the first iteration of my email was definitely not what I said over I literally sat on up for three days.

I was like, you know what, it's still a lot of sass in here.

That's a very mature way to approach it.

I tried so hard because I was like, because one of my friends like, and we could excuse me, that we can move on. But one of my friends he always reminds me of whenever I'm like, you know, upset, He's always like, well, what's the desired outcome and work toward that. And so my desired outcome was not to lash out or to make somebody feel bad. Honestly, my desired outcome was to hopefully reach some sort of understanding where I'm like, I can show her I understand you.

But at the same time, hopefully to get her to see.

That this is not the way and that you don't you don't get someone to that space by like, you know, lashing out at them.

So I had to remind myself.

But it took, honestly, it took three days and then honestly sitting down with a friend of mine to be like, could you like help me to reword this in a way that's less like you know, mad, And so she helped me to really tone it down and you know, and to send it over where I felt like, Okay, this is much better.

I mean, her reply back wasn't the greatest.

It wasn't like you know, it was kind of like and she replied back right away, I'm like, so I'm the only one to takeing time.

It was kind of like yeah, girl, I hear you.

But still, and I was like, you know what, I'm gonna see her in person, and I'm sure by then we'll both have calmed down and been like, you know, maybe there's some middle ground where we can meet, but until.

Then, I will not be sending anyone in that direction at all.

So in this scenario, you were like Serena and she was like Naioli Osaka I'm trying to find a segue so we can talk about that real quick.

And I kind of felt that, you know what I felt like, I felt like, how come she gets to talk crazy to me?

Honestly, Mandy, That's how I was feeling. I was really frustrated.

Like at one point, I was like to the point of near tears because I was like, Yo, how come she gets to talk crazy to me and about me and this group of like brown women who are trying their best, but like me, I have to be careful because I know that if I come at her with that same energy, it's gonna be oh my gosh, clutch my pearls.

Black girl, Tiffany whoa. I knew it. I knew it, you know, I was. So that was what made me so livid. I was like, Yo, this email, you.

Were talking recklessly like people throw hands for less, and I'm like, nothing happened.

There was no preamble to her vicious email. There was no like.

It was like literally my Facebook messager said, hey girl, Hey, what's up. You know, how's the conversion's going? Let me know blah blah blah. That was literally my Facebook message because we're cool. And then the email was vicious, vicious, vicious. So I was like, Yo, why do I have to take three days to USA and get a friend of a friend and say what do you think? And then as soon as I send it, within ten minutes, you get to come back swinging again.

The thing is like, it's not about canons, like she shouldn't but like you you don't have to do what you did, but because it's just it shows what kind of person you are. I mean, that's the high road. It's like the high road. It's hard to take sometimes it's a choice though, like you don't have to, but would you be as successful if you didn't? Probably not, But.

I guess I feel like it just feels so unfair because if I didn't take the high road, the consequences are different. I guess that's what I mean about having to not be vicious back. It's like, why do we have to take the high road?

Why?

You know, why can't I just be just as passionate without being labeled as difficult or whatever?

You know what I mean, the difficult woman, a hysterical woman, or the angry black It's like we get the double whomy, the women double standard, the black woman under double standard, especially in business. Yeah.

Yeah, so it just felt very that felt really frustrating that it was like, wow, like yo, I could never write an email like this to someone, I could never speak to them crazy because it'd be like whoa, you know, like this isn't but like nothing's gonna come of it for her, you know, I'm sure like, you know, this is not the first time she's probably exploded on someone

Yeah, I mean I'm not even going to try to pretend like I understand the rules of tennis. I don't watch it. I don't know what a six' four and a six two is and a match point and all that kind of, stuff BUT i do understand the gender. Dynamics AND i feel Like serena is such an icon because her whole career has been battling this type of. Treatment like no one wants to give her credit for being the, best the best athlete of all. Time they want to call her the best female athlete of all.

Because it's like oh here they.

GO i, yeah, exactly you, know and like you're, like but,

Flowing and they were like, no even though there were other women.

Who were allowed to wear that's like a similar Cats she's Like samanna has a different. Body AND i just thought to, myself like this is this is like. Crazy how much are you supposed to? Take how much are you supposed to just be like, okay LIKE i, mean it's JUST i just it's. Hard, Man like sometimes you don't realize until something happens in the triggers WHEN i grew up In, westfield which, is LIKE i, said majority white and very very small like population of anything.

Else like we would go to the pool and it was. Nothing you. Know it wasn't.

Until LIKE i started going to the pool and like with like sisters and like a young brown and black women THAT i noticed, that like by age, eight little black, girls you notice that mandy would wear A t shirts over their.

Bathing suits and like. That you.

Know BUT i just thought to, myself, like why are our bodies like? Bad you don't even remember being so like, Surprised like why are you wearing A t?

Shirt? OH i can't show off my? Body i'm, like we're, eight you, know you know WHAT i.

Mean AND i just LIKE i don't even think people recognize how exhausting it it can be to be a, woman you, know but especially you, know a brown. Woman there's every time you turn, around how you, are it's told to be. Unattractive you, know too, aggressive you're too, loud you're too, happy you're too, this you're too, that you're too, passionate you're too you, know how.

Dare you stand up for?

Yourself YOU'RE i would like somebody who's Like meeker and less powerful and oh, man, like it's just you want to like scream sometimes and sometimes you feel like no one is in your corner but your other, sisters and it's, like but we're in everyone else's.

Corner look at every. Rally who do you see?

There you know, us even if it's not about, us you see, Us and it's just like the world would miss. Us boy if we weren't, here what would? Y'all what would y'all do without brown? Ambition quite, honestly when you reach a certain, level it's just you have to really have a great support system around you because other than, that it'll drive you crazy.

If you don't have people who are, like, like you're not. Crazy you know you're not.

Crazy like know this is unfair and it's okay to feel some kind of way about. It it's important to have like a good you know. Support that's WHY i just love THE ba family because you guys.

Are always so. Dope so, yeah boost, serena boost.

To name on, me boost to us while we're at. It, yeah just because you get a, boost.

You get a. Boost everybody gets a.

Boost speaking of, Booths i'm excited that we are talking about.

Retirement. Today i'm not, retirement but investing overall.

Investing, yeah you, guys are you guys? Ready because you've been asking who my financial planner, is And i'm gonna do, you but one better than actually telling you her, NAME i bring her on the. Podcast my personal financial, Planner

Today in other, words don't come and try to sue.

Us, hey thank you for having, Me. Mandy i'm so excited to be.

Here it's like. Heaven it's like they the big, reveal the big. Reveal so this show is so important to me And tiff because she AND i have talked about this again and. Again how do you start investing outside of your four one? K just Like, tiff you, said once you've maxed out your four one, k got the, match maybe you've opened up a LITTLE i ray on the. Side you've maxed that out, too and you still have money in the. Bank it's an awesome place to, be BUT i feel like some, PEOPLE i don't. KNOW i

Right so there's a huge difference between saving and. Investing so when clients come to me or WHEN i WHEN i you, know onboard, somebody they, say, oh, Yeah i'm invested in my four to one k at, work and really all they have done is put money into, it and they haven't actually invested the money that they saved

Account so let's start with types of. Accounts, so once you've maxed out your four ONE k and you have extra cash in the bank that you want to, invest do you do WHAT i, did WHICH i think is probably not the right thing to, do and just start randomly buying a stock on Robin hood because you're too afraid to commit something more. Serious, YES i feel LIKE i skipped a few, Steps but, yeah where DO I where SHOULD i have? Started? Helen i'm SORRY i didn't call you, first less around behind your.

Back that's.

OKAY i knew you had That robinhood.

ACCOUNT i think that was like your fun money investing without any strategy behind, it, right.

Not a single strategy to be found me.

As, well know this is. Strategy what'd you say about that? Stock let me see robinad has that availab three, Piece.

Yeah and buy it for free on. There they have no transaction, FEES i, believe m m yeaeah.

Yeah that's zero zero dollar. Trades it's. Awesome.

Yeah so that so you can go on, robinhood which is zero. Action you can Buy tesla or whatever sexy stock that you might have heard from your uncle or the guy or girl you met on the, plane but there's definitely a strategy behind. It so if you have already maxed out all of your different types of retirement, accounts including your traditional iri roth ares and four one ks or four or three, bs even your pension, plans.

What do you do?

Next so the next step that is most efficient would be to open an investment. Account so like, You, mandy you opened up A robinhood, account but, then like you, said there's no real uh strategy behind. It and WHAT i typically tell clients is if you've if you've never really selected individual investments, before you start out with the. BASICS i kind of refer to, cooking or you, know

Investments does that make?

Sense so you want your foundational investments like investing in DOMESTIC us mutual funds or. ETFs TYPICALLY i recommend to clients to just purchase. ETFs i mean there's thousands of them out there now that are much cheaper than investing in mutual, funds which charge you a higher upfront fee depending on the class.

SHARE i, mean we can.

TALK i can talk on and on about, that but start.

With what AN etf. Is, yeah interested for your definition of, it BECAUSE i THINK i know what it, is BUT i probably.

Don't, Yeah so people will, say, OH i just want to do index, Funds, Helen, well you can buy index funds as a mutual fund or AN. ETF A etf basically stands for exchange traded. Funds so let's just say you are interested in buying shares Of, amazon which is at two thousand dollars a share right? Now, right do you have two? Thousand like you put in two thousand dollars you bought one? Share, okay big, deal.

Big freaking.

Deal same thing With Birkshire.

Hathaway i'm not really sure what the price is, now but it's in the. Thousands so you gotta have a lot of money to even buy one spec one fleck of that. Investment so with ETFs and mutual, funds just imagine you wanted to get into some tech stocks but don't have two thousand dollars to buy one, share but you do have two thousand dollars and you want to, diversify you can invest in those index. Funds and the more cost efficient way is to purchase ETFs because they

Fees, so and.

ETFs are more tax efficient in that they don't, necessarily you, know reinvest the dividends and distribute it To so, yeah so.

AN etf is like you're not just investing in one company you're investing in, like so you can get a TECH etf that has that lets you invest in multiple companies all at, once exactly exactly.

Exactly so think about it as a bucket with different pebbles in, it and each of those pebbles represents a different, stock Saying, Facebook, amazon whatever other tech stocks you can think. Of, so so, yeah if you don't have two thousand bucks just to invest in one, stock you can purchase in AN etf or an index fund mutual fund that has no fees. Upfront so there are mutual funds that are very cheap that are called no load.

Funds, okay have you guys heard of that? Before no mutual funds Like vanguard do they That i've? Heard, yeah, yep.

Yep vanguard is one of those companies that have very limited options of no load Fund.

So load just means.

Fees it's an industry term that that we. Use but if you see it says no load mutual, fund that means that there's no upfront fee for. It there is still a management fee because there's a team of investment. Managers, yeah, folks people managing that particular mutual fund OR. Etf let's just, say.

And that's called like an expense, ratio, right, yes. Exactly but you, Know i'm not gonna lie to be. HONEST i just read a book this weekend And i'm.

Like, wait no things, Wait so we have held on So i'm not all that smart about.

That we can get as technical as we, want but you can just go On Google finance Or Yahoo finance or whatever and type and tech. ETFs you'll get hundreds of them.

Listed so let's back up for one, second because you mentioned like when you're building your spice cabinet of your portfolio starting with your salt and. Pepper so If i'm you, KNOW i think we have a good sense of brokerage firms that are. Available so There's, vanguard there's Trans, america Trans. America is that? True what AM i trying to? Say Td Ameeric, Trade Charles. Schwah there's all these kind of discount.

ETFs, Yeah so start, broad very broad with your foundational asset CLASSES us, domestic international ETFs or mutual, funds and then throw in some fixed income in, there such as municipal bond funds or long term bond funds because it offers you a higher interest. Rate and then there's also

How much should be that salt and? Pepper do? You i've always heard there's that rule of, thumb like you take your age and subtract it from one hundred and, ten and then the bigger number is how much you should invest in stocks versus? Bonds is that like? DUMB i MEAN i feel Like i'm very. AGGRESSIVE i have most of my four oh ONE k and, stock AND i have most of MY ira and, stock and it feels good because the stock market's been doing so. Amazing But i'm in my thirties now and part of me

About, yeah so those target date, funds those are very convenient because you just put money in there and it automatically invest for you in its. Turnkeys so as you approach your retirement, age say it's sixty or fifty, five it automatically switches to a more conservative portfolio each year as you get, Older so you, know blimer or out with target date, funds they're mutual. Funds within that mutual

Fast does that make?

Sense, Yeah so it's almost Like i'm asking the wrong. Question, FIRST i guess the first question to ask when you're starting to invest outside your four ONE k is what AM i investing? For like long term or short?

Term?

Yes and for what time period are you investing? For so your retirement, accounts if you're young, twenties in, thirties or you have more than ten years of, retirement you, know think about the business, cycle the ups and downs of the stock.

Market you can be a little bit more.

Aggressive you can have like an eighty ninety percent equity portfolio and fifteen to twenty percent fixed. Income that's that's pretty aggressive, Now, MANDY i know yours is like ninety nine percent. STOCKS i, mean you put me on.

Blessed that's not from my.

Direction helen's, like just to be, Clear i've told You.

I'm way more old lady about.

Mine i'm just so people are clear because sometimes the words can be, like, wait what does that?

Mean equity is? Stocks and what was the other thing you?

Said fixed, income which is, bond, CDs cash.

Equivalents, Yes so just so we're. Clear it's just so people are not, like, wait what does that?

Mean BECAUSE i like that sometimes when it comes to like the financial.

Words, okay, yep.

Yep so WHEN i say, EQUITIES i mean like, stocks and, yeah pretty much stocks and any ETFs that invest in, stocks mutual funds that invest in. Stocks but WHEN i say fixed, INCOME i mean like more secure investments like bonds or cash. CASH i would consider that as fixed income as, Well so more more secure INVESTMENTS i.

Think FOR i think SINCE i Mean tiffany AND i both have a, house AND i think both of us are in a place where we want To WHEN i think investing for, WEALTH i THINK i want to build a brokerage account where when, i'm you, know thirty years from, now When i'm, Retiring i'm living off the income from my brokerage. Account so that to me seems pretty long, term like thirty years, right.

Yeah, yeah that is long. Term and you can have multiple investment accounts for different. Things so let's just, say you, know you have an investment account that's in addition to your retirement, accounts and it's earmarked for thirty years from, now and then you have another investment account that's earmarked for ten years from now when you want to THROW i don't, know a big fiftieth birthday party or forty fifth birthday party whatever it, is or celebrating you, know

Unpredictable, yeah one of the THINGS i know THAT i want to Because I'm i'm not gonna. LIE i was a school teacher for ten years and now as a business, OWNER i mean and make more THAN i could have ever dreamed, of BUT i still live.

Basically like a school. Teacher that's, good.

And SO i have you, know maxed out like the traditional like and retirement kind of like plans and WHAT i want Is i'm thirty, eight AND i would love by, Fifty like this is my husband Not our goal is by fifty that we are financially, independent THAT i honestly still see myself working just BECAUSE i enjoy. It but by fifty if we didn't want to, work and you,

Not doing, anything you.

Know so that's kind of like our, goal and that's what we're kind of struggling, With, like so what do we do with our money to set us up for that? Potential even though at fifty we might say second career or, whatever you, know but, yeah that's kind of like our.

Goal BUT i Don't i'm not gonna.

LIE i don't know what to, do like to get to that space where it's, like, okay twelve few years from, now what DO i need to put away?

Now and where to put myself in that?

Position BECAUSE i THINK i make enough to do that quite, HONESTLY i just don't know what to do with.

It, yeah so the order at which you withdraw from your accounts is really important. Too when you. Retire how old did you say you wanted to retire? At what was your ideal, Age, TIFFANY.

I would SAY i would like to be financially by, fifty not THAT i would pull off my retirement. Account, yeah whatever the investment, account it's enough to yield, me to yield my. HUSBAND i collective one hundred thousand. Dollars you're knowing the house is paid, off you don't have any like you, know we don't have really any much overhead as far as like, bills you, know but that's more than enough to sustain us.

Both, yeah so let's just stick with a round number like. That you're saying it's one hundred thousand dollars that you're going to be spending basically for your lifestyle. Costs and let's just assume between you and your husband you're working part time AS i don't, know a, LIBRARIAN.

I don't.

Know that's my retirement dream is to accumulate so much money WHERE i can.

Just be a. Librarian, oh that's like, that.

Or be a professor part time or, whatever just to get the health benefits and get out of the. House but, anyways so you, know twenty five thousand dollars from your library, job and he's making another twenty five, thousands so fifty thousand dollars total from CHECK w two income for. Example so where are you going to generate that extra fifty thousand dollars right from your investment? Portfolio, well, fifty you're still too young to withdraw from your, accounts your retirement

There, okay that's one of the things we.

Brought we just bought an investment, property and we're thinking about getting a second because that would be one of that's one of our ideas of, like, okay, well if the rents from here yield US i don't, know two thousand dollars a, month we start to chip away at the.

Goal, yeah well that's another twenty four thousand dollars right. There so now you just got to come up twenty five thousand dollars from your investment portfolio each.

Year, okay that makes.

Sense so investing, like you don't necessarily have to invest in the stock market if you. WANT i, mean another great source of income later on is in real. Estate if you have the additional side money to invest in that type of, VEHICLE i should say.

Yeah sometimes it's the challenge is deciding what to invest in, first and like in what? Order AND i Was i've gone through you, know we get questions from readers all the, time AND i think one of the most common ones IS i have a little bit, SAVED i have some. DEBT i KNOW i need to be worrying about, Retirement but what comes? First is it my emergency? Fund is it my four oh ONE? K or you, know SHOULD

That, Yeah so first of, all there's different types of. Debt if you have student loan debt or credit card, debt definitely try to pay those off. Fast same thing with your, mortgage try to pay that. Off but with the mortgage it's a little bit different because that is money that you are investing in a home that has the potential to increase in value and has the potential to earn you back, money whereas those other types of debt like student loans and credit card that doesn't pay

Fund quote.

UNQUOTE i MEAN i was just thinking how many conversations you AND i have had about. THAT i, mean don't put my numbers out, There, Helen but.

ALSO i want to, Know.

Mandy BUT i, mean they're quickly depleting because of this home. Renovation but, No, helen definitely we've had these real talk. Conversations wheresu's had to tell, Me, mandy you're not poor and maybe you're saving too much in cash for your emergency. FUND i THINK i wanted like twelve. Months, yeah and then, yeah if you want to talk about that conversation that we, had because.

Please preach to, Me, helen Because mandy AND i are, sisters soul. Sisters in hoarding, cash it doesn't make any. SENSE i look at my bank account and my husband's, like you, know you, know we don't live in a great, depression right you never.

Know, yeah it's funny that we're having this investment, conversation but you guys hold on to your cash so.

TIGHTLY i, MEAN i bought a, House. Helen come, On i'm making sure.

That is investing.

TOO i think sometimes, people you know you are investing in a risky asset, too because you're hoping that the value of your house will produce income in the future if you decide to move out of. It mandy or you, KNOW i really strongly believe that the home value is going to increase once you renovated and all, that and where you live and.

Everything BUT i, mean you were the first PERSON i called when we were buying the house just to like talk me off the. LEDGE i was, LIKE i know it sounds right on, paper but what Is helen have to? Say And you're, LIKE i don't think this is part of my regular monthly check. In but, No, yeah it's it's. Scary even though you think intellectually you know it's important to diversify your, assets it's, still you, know buying a house investing in the, market things can go.

Wrong do you think it's like?

Humanity it was because of the. Recession is that why you? THINK i know't for, me that's where my fear came.

From oh, YEAH i mean buying a. HOUSE i also feel like the market is really hot right, now like, Homeownership like the prices are going, up inventory for homes is. Low i'm buying in an expensive. MARKET i just really didn't want to make the kind of decision that would

Recommendations, YEAH i mean fifty thousand dollars and the bank account is a lot in. CASH i had a, client a new client, today come. In she has nine hundred and eighty thousand dollars sitting in A Morgan stanley account for the last five years.

Kind of account just like.

Savings, no it's an investment, account but it's just been sitting in, cash.

Uninvested like, What, Yes.

So it sounds like. That Why i'm not Too i'm not gonna.

Lie i'm not too Far i'm not too far away Like, HELEN i was so. BAD i actually bought my house in cash BECAUSE i had so much money.

Left, YEAH i.

DON'T i feel it's just this fear of like IF i IF i don't see, it IF i can't hold, you where you're gonna?

GO i get.

It it's it's it's you buy a house because it's, tangible you can touch, it you can you can rub yourself all. Over, yes but whereas like an investment, Account, Oh i'm gonna hit, by and then it just sits There like that's not, sexy you, know like you kind of forget about. It AND i feel like with this client who came, in she had no idea what to do with, it so so now she is it's just been sitting there for the last five. Years she came

Year are you kidding?

Me?

Yeah, OKAY i feel better about my life by the TIME i get. THERE I i, MEAN i WISH i had that, problem BUT i.

Don't, No but, honestly it's this is good, though BECAUSE i, think, UH i think some, people you, know they think they'll never get to a place where they can, invest so they don't mentally prepare For like, okay because you you, know if you really work toward down your, debt you'll you'll be in a position where you can invest past your.

DAY i, mean just WHAT i always tell people is just think about do you guys remember how much the cost of stamps or gas was like ten twelve years, ago you, know or.

Back in your?

Childhood do you remember how much stamps? COST i remember today gallon WHEN i was.

Six, yeah it was.

CRAZY i had the license and that was like everybody had five water like, GIRL i?

Gotcha, Yeah and do you remember one gas was actually five? Dollars it was more than. Milk that wasn't too long. Ago SO i tell, People, okay your money is sitting in. Cash guess what You're what you're not realizing is the two and a half three percent of inflation that occurs on average historically eating that. Up so if you're money is just sitting there in cash at point one, percent you're losing money every.

DAY i, mean we at least got that online savings account on floor the high interest with the high, entry we're baxing out our online. Savings but, YEAH i it's definitely time for both of us to well tif you have a brokerage, ACCOUNT i think well tips like Next level she. Has you, know she's a budgeonese to she's selling, out selling out and retreats And morocco and stuff in the real. World the rest of us just have some pennies to throw. Around, no but so let's. TALK i,

Firms, yes of COURSE i have an.

OPINION i, mean it's a safe. Space we don't have any sponsorships with, them don't, Worry.

Okay so it really depends on how involved you want to. Be if you are hands off and you're, like you, KNOW i want to get into, investing BUT i really don't care or have the time to sit pick and choose and read the perspectives or look up what ETFs i'm interested. In go to those cheap robo advisors who you, know charge like zero point two five percent to manage

Go if you want to be.

More hands on and pick and choose, stocks you, know go with the discount brokerage firm Like tedium Or trade or A schwab or A. Fidelity they just charge you like seven ninety nine or four ninety nine per. Transaction and if you really want to get sexy with, it WHICH i you, know don't really recommend because it's very, expensive is to go to the more traditional wire houses or brokerage firms Like Morgan stanley or what is It Merrill. LYNCH i mean they'll charge you a commission based on

A certain.

Portfolio say you wanted to retire AT i don't, know twenty years from. Now to put you into a portfolio like, that it's similar to that target date Fund mandy that you were mentioning. Earlier you just kind of set it and forget it.

Now the maximum you can contribute to AN, ira so if you're opening another retirement account outside of your four ONE, k that's fifty five hundred a. Year, Right but we're talking about like a brokerage account where there's not a limit on how much you can save each, year, right.

Yeah, Correct, Yes so we call that just a regular investment account or retail account or brokerage. Account those are all it's the same freakin'.

Account would you, recommend, well would you? RECOMMEND i hope not, Me but, generally if you're if you haven't open to iray outside of your four ONE, k do you make that your first stop and then think about the discount brokerage after you've put your fifty five hundred away for the, year or do you do both at the same.

Time, Yeah so those brokerage houses that that you're talking, about like where you open the account In in our, language we call them, custodians like all of those platforms THAT i just mentioned or that we just. Mentioned you can open up a roth, ira TRADITIONAL ira or investment account in any of those. Places so the type of, Account,

Account so you can do. Both you can have a four to ONE k and a traditional. Ira, Correct, Okay, YEAH.

I Think that's Where i'm heading next is just to open Up, Actually, helen you, know we opened up A VANGUARD ira and then just like didn't do anything with it BECAUSE i got cold. FEET i don't know, Why i'm crazy.

FUNNY i was looking, heavily quite honestly Into vanguard as, well BECAUSE i just read, LIKE i like kind of like the philosophy of the company that, like you know that THE i guess it's the profits go right back and it's not like they have investors except for the people who are actually purchasing the mutual funds or, ets AND i kind of like, that and that they're not heavy.

Salespeople that's SOMETHING i.

READ i don't know if that's, true but you, know you're not going to be like upsold to these things that you don't kind of. Need because even for, me LIKE i want one of the one of my goals for next year is to offer like a retirement benefit to the people that work for my. Company and So i've been like weighing companies And vanguard has been like

Into it's.

There they're not.

BAD i MEAN i PERSONALLY i Use Tdomerior trade for myself and for my. Clients and you can actually Buy vanguard ETFs or mutual funds within other brokerage. Accounts so maybe you have like A schwab, account a wroth Iray shrab, account or A schwab investment, account you can Buy vanguard funds in.

Them you know. THAT i didn't know.

That, Okay, yeah.

You don't necessarily have to use open up A vanguard Wroth ira to purchase their mutual. Funds so it's a, like you, know pick a platform and, say, hey you know WHAT i really Like Tdomerror trades customer service and just keep everything in house for easy management of all your accounts and not have a zillion different accounts at a zillion.

Custodians and can you do individual stocks at these big brokerages Like VANGUARD Tv, okay, YEAH i Think.

Vandguard i'm not sure about Tdmor Trade shrub for. Sure, Fidelity, yeah you're able To fidelity, yep for. Sure.

YEAH i think that's WHERE i get stuck a little bit BECAUSE i have The Robin. HOOD i THINK i have some Dormant acorns account. SOMEWHERE i don't like having these OTHER i don't like having the accounts kind of spread. OUT i would like to have them in. House. Yeah so that's something to, consider is finding a brokerage firm that maybe gives you the ability to do a little bit of. Everything.

YEAH i, mean you don't want to have too many investment accounts or irays floating around out. There first of, all THE irs looks at your even if you have one hundred different wroth irays at one hundred different, firms you can only put in fifty five hundred. Total THE irs looks at all of your one Hundred wroth irays as one. Account so you can't be, like, Oh i'm going to open A vanguard roth and put fifty five hundred, there put another fifty five hundred in THE Td Marrior trade.

Here.

Yeah, yeah don't don't try and game THE i arrest.

Now. Yeah, no, no, no, no, no, no, no.

This is not what we're saying to.

DO i, mean that's a Good it's like a sixteen year old, girlfriend, Right they're, like, oh, no, no, NO i know all the chicks to.

TRADE i will do my. RESEARCH i will find you, well, yeah you can't do.

THAT i don't want to get too like deep into, it but taxes are something to talk about when you're talking about, investing AND i, mean what's like a NICE i don't know how to even gently broach this, subject but it's something That i've had to think about more as my taxes and you, know AS i start investing DO i need to DO i need like A cpa who is experienced with investments and can help, me you,

CPAs keep in mind that they're not necessarily savvy on the retirement planning. Rules i've found that very few of them actually know the retirement tax planning side of it in terms of whether or.

Not you can.

Deduct you, Know i've had several cases where clients actually weren't even allowed to put money into their roth iray because their income was so high and we had to withdraw the money or file a correction because you get penalized six percent if you overcontribute to your. IRAS i don't know if you guys are aware of that or the audience. Members if you put too, much even if it's a, dollar guess what you're going to pay six percent on that?

Dollar starting getting worried about that last year is oversaving on my four?

One?

Okay, yeah so you just have to file a bunch of paperwork to correct that contribution and withdraw. It and then and then guess what even if you made say you're you put in one hundred, bucks over contributed a one hundred bucks and that one hundred dollars grew to five hundred. Dollars sketch where you're gonna have to pay taxes on the games that occurred within that account and what you withdraw. Too, so so be careful about your income level when when you contribute to a ROTH, ira

You, know, well so it's just something to, consider like so when you're when you're hiring, it SO i know THAT i work with, You, helen and just to be, transparent Like, helen we meet like twice a year, regular you, know with, you we were meeting once a month the year that we were getting married and kind of joining our. Finances you were kind of our financial therapist for that, year and now we're doing. Biannual but you, know my

KNOW i usually like to read their tax filings or your tax filings and see how they've been doing. It you, know try to look for A cpa somebody with that designation because they in their exam they have encountered the retirement rules or the retirement saving. Rules but it's but you, know just because somebody has THE cpa, designation be careful about their background because some of them are corporate CPAs who just left the corporate world and now they're doing personal,

For, Okay and.

It's always good to have both people talk to each, other like my MY, cpa my, accountant and my financial. Advisor like during like at least twice a, year the three of us will kind of get on the phone because there are things That i'm, like, Like carlos will be, Like, tiffany you did not tell me That i'm, like WAS i supposed?

To?

Like for, EXAMPLE i, WAS i was contributing to a sept but AND i. DIDN'T i didn't Tell, carlos my, accountant that he KNEW i was contributing to a retirement, account but he.

Didn't know that it was a.

Set but THEN i switched from like AN llc to an, escorp which meant that was no longer self, employed SO i. COULDN'T i was not supposed to be contributing to a self employment retirement. ACCOUNT i was supposed to then switch over to, something BUT i didn't, know and so he was, like so even now we're kind of taking our way out of like a. TIFFY i was, LIKE i didn't

Out, yes, yes and be very worry of those who try to do everything in, house because filing taxes and doing, accounting especially for, businesses that's like a full more than a full time job in. Itself and then they're, like, oh, yeah we also do investment. Planning i'm, like give me a, break, dude there's no. Way so like for, ME i just do straight financial planning and help with the investments and choosing the investments and building clients. Portfolios BUT i don't

Other that's important. Too oh this has been so. HELPFUL i Think i'm finally going to get off my ass and get this stuff. Together.

Helen stop sitting on that.

CASH i know even if you if you're let's just, say your emergency savings is like one hundred thousand, Dollars like why are you going to write a hundred thousand dollars check for?

Anything and you're real well like buy Aw, hellen right, Now, ellen for this. Renovation But i've read, Renovation, Helen i'm Gonna i'm going to start small and then start. Easing, well first we've got to rebuild the savings that we're. Spending AND i think that you've been good about helping me. Realize, okay you're going to spend it, now but do the math and find out how long it will take you to replenish your, Savings like it actually won't take you this,

Good thank, You.

Helen, yeah any other?

QUESTIONS i love talking. Money Do we're gonna have to do more investing. SHOWS i know we're gonna get a flood of questions after this, episode a. Flood and if you guys have sent investing questions and we've ignored them because we ain't we already, experts please resend. Them you can hit us up At Brown Ambition podcast at gmail dot com or, yep or go To Brown ambition podcast dot com and hit the ask us anything tap for your. Questions maybe we'll Have helen back on the, show gets

Show, yeah so so, helpful thank.

You, yeah, anytime