By good morning, Good morning.
So thank you for coming on the call even though you're not feeling well. That's very nice of you. And congratulations with the Steve Harvey interview. It was really really well done. It was great. So you guys must feel so proud of yourselves right now, So thanks a lot for that as well. My question is about my TDA.
I am a teacher in New York City and I have about ten more years left till I retire, so right now I have They let you split up your TDA, your tax defer annuity into diversified and fixed, so I believe I've always had it like eighty twenty, but I just realized that the diversified has options and I didn't know that. So there's like a bunch of different options, and I just wanted to know, like how, like what's the best way to like pick between the different funds
because they have like like three or four. There's like a sustainable one, there's an international one, Like do I just go by like the history or do you think it's better to just stay with like the one they recommend, which I think is just they call it like the diversifying.
Yeah, it's always good to rule a thumb. You always
want to look at rate of returns. That's something that's you know, a cheat code whenever you look at an investment, especially like four one K or any type of retirement plan investments, usually like they'll they'll give you a sheet and it'll have like, you know, the different funds, so it's like the stable fund, to grow fun the international funds, and then they'll have like the yeah, the date return, three year return, five year return, ten year return, census inception.
What I like to do is look at the longest possible time frame, so like ten years or since its inception. Sometimes if it's new, it might not have a ten year track record. It might have like a five year or four year track record, but yeah, or I look at the long the longest possible time frame and see which one has usually performed for that. Usually, like I
haven't really been a big fan on international funds. It's me personally, especially like in retirement accounts over the last like ten years, they haven't done as good as like just been international growth growth funds. So it really just depends on your risk tolerance. But you know, the growth growth funds is always going to be something that's going to usually you know, be the best as far as growth over the cost of time. That's like no more
large cab companies. And but the good thing and I don't know if they changed it, but I know a few years ago for the fixed account for the city, how much is the fixed account paign?
Like seven percent something like that.
It's it's seven point twenty five. When I started, it was eight point five or eight point two five, but then they lowered it to seven point two five, so I was able to get the eight percent like the first two or three years I started teaching. But now it's seven point twenty five, and like I have ten about ten more years left, so I have like twenty years already and I have ten more to go. But
the sustainable index gives a greater return. But it's very new, so it's only like a few years old, so I'm like, is this Should I trust that? And then they also say to like switch it right before you're about to retire, to just be in the fixed ones so you don't have to worry about like big issues with the market.
Yeah.
Well, the good thing with that is that that's pretty much I heard of to have a fixed account that earns seven percent, So that is one thing that you know, the New York City OUH Department, that's like really like kind of amazing that they have a fixed account, which is like pretty much you know, no matter what the stock market does, you can earn seven percent. So usually a fixed account in this environment is like one percent or less than one percent. So seven percent on a
fixed account is extremely extremely good. So you know, I wouldn't take it all out of there. Definitely would probably leave some money in there just for the safety purposes of it. Like you know, if all if all else fails, if the stock market crashes, you're guaranteed to get seven percent. That's not bad, obviously, you know that's not as good as if the stock market goes crazy and you get thirty percent of twenty percent.
But you know, it's all about diversification.
So I would diversify, but I would leave at least at least like probably twenty five percent in a fixed account because that's just like a guarantee insurance.
Almost.
All right, thank you Sedalia?
All right, wait where coming to you on MU?
Please? But you're in muted you should be able to speak, right, looks having.
Difficulties sometime you got this do them tool. You gotta make sure you are muted on your earners.
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An illegal alien from Guatemala charged with raping a child in Massachusetts. An MS thirteen gang member from Al Salvador accused of murdering a Texas man of Venezuelan charged with filming and selling child pornography in Michigan. These are just some of the heinous migrant criminals caught because of President
Donald J. Trump's leadership. I'm Christy Noman, the United States Secretary of Homeland Security under President Trump, attempted illegal border crossings are at the lowest levels ever recorded, and over one hundred thousand illegal aliens have been arrested. If you are here illegally, your next you will be fined nearly one thousand dollars a day, imprisoned, and deported. You will never return. But if you register using our CBP home app and leave now, you could be allowed to return legally.
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Be protected sponsored by the United States in the Homeland Security and too. Like we can on YouTube, but make sure you're muted on you and so we could all yeah.
He hadn't muted himself, but he wasn't speaking.
All right, do right, We're gonna go to the next person, Natasha, I mute yourself, pleased football. I have a question about a trust. Who do I go to the start a trust? Where do you live in Maryland?
Well, I know, so the lawyers that we use.
You know the thing with the lawyers that is different, Like MG he could practice in almost any state for the for the mortgages, but lawyers they have to they have to be licensed in the state. So I know we've used to being a lot. I know she's licensed in New York and New Jersey. I don't know if she's licensed in Maryland, but I think that we we had somebody that was licensed in Maryland, because I remember I got that question before from somebody from Maryland.
But if not, we can.
Definitely you know, look, I don't want to give you an answer right now because I don't know at the top of my head, but if we could put it in a Facebook after we you know, do some research and find some good attorneys, maybe magnat, maybe that's something
that we can just do period. Like you know, we can try to, like you know, highlight some different professionals in different areas country, especially the law thing, because that's something that you know, you depending on what state you live in, you got to really use the lawyer that's that's practicing in your state, and that could become a little tricky if you live in states that you know,
we haven't really featured lawyers in that state. So okay, yeah, the Legal Club, we have a legal club actually, so maybe that's something at the Legal Club can can can can do.
And one more quick question, I remember you saying that I can I think it was thirteen or fourteen, you should put six thousand in a IRA for your child? Is that in it? It could be an estimate. I think y'all were saying one million. Is that six thousand and four when she's fourteen or six thousand every year would equate to that estimate.
Yeah, So what I did when I thought I was on a breakfast club when I was, I said that a while ago. I was using an example like if you put six thousand a year, and from I believe it was like the example that I gave was like from fourteen to twenty I believe, like from fourteen to twenty, and I just used a hypothetical like if it earned ten percent, I use like QQQ, which you know has averaged more than ten percent over the last twenty years.
But I'm like, al right, if you earn like ten percent a year by the time there's sixty, then they will have a million dollars. So obviously you know it's it's not like one hundred percent guarantee because it depends on the market. But that was an example that I had gave just to kind of illustrate the power of investing early, because if you think about it, even if it's not six thousand.
Whatever, you can do.
But that's only like four years or you know, six years of investing. And you know, just by the compounding interest and leaving it in for such a long period of time, than that equals a million dollars without even having to put any more money in after the age of twenty. So you know, that was just an example
of you know, the power of compounding interest. And you definitely and I think the example that actually gave us with the raw fire and the raw Fire ray is even better for kids because they don't pay any taxes
or when they take the money out. So now you set up there, you set up their retirement account when they're young, and you know, by the time they get they get to retirement, they're gonna have they're gonna have, you know, a tremendous amount of money just by the money that was set up for them, you know, while they were teenagers, and that had nothing to do with you know, their own fall one cage or their own iras when they get old enough to set it up for themselves.
So that's definitely a strategy that parents can use for their children.
Whenever they turn legal working age and the rulers you can put up you could put up to well, six thousand is the max, but you can put up to whatever the child made. Like if they have a part time job and let's say they made like three thousand dollars for the year, then you can put up to
you know, three thousand dollars. But it's not unreasonable to have six thousand dollars because it's like if they work it like CVS or something like that, you know, they make five hundred dollars a month, that's six thousand dollars
a year, So five hundred dollars a month. That's not really a lot for a part time job, so you know, and then if you're self employed, it's even better because if you're self employed, then you can hire your child and you can pay them, and when you pay them, you get a tax deduction for the money that you paid them, and then that money you can put into
the rough IRA or a IRA for your child. So that's like a double edged sword because now you're actually saving money on its taxes and your child is working for you and you get to save money for their retirement. So a lot of different things that you can do with that. But ye'd ask some different ideas for show.
An illegal alien from Guatemala charged with raping a child in Massachusetts. An MS thirteen gang member from Al Salvador accused of murdering a Texas man of Venezuelan charged with filming and selling child pornography in Michigan. These are just some of the heinous migrant criminals caught because of President Donald J. Trump's leadership. I'm Christy Noman, the United States
Secretary of Homeland Security. Under President Trump, attempted illegal border crossings are at the lowest levels ever recorded, and over one hundred thousand illegal aliens have been arrested. If you are here illegally, your next you will be fined nearly one thousand dollars a day, imprisoned, and deported. You will never return. But if you register using our CBP home app and leave now, you could be allowed to return
legal do what's right, leave now. Under President Trump, America's laws, border and families will be protected.
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