MVP Real Estate Podcast

Chat about the Younger Generation and Financial Planning

December 16, 2022 Marcus Perleberg Episode 41
MVP Real Estate Podcast
Chat about the Younger Generation and Financial Planning
Show Notes Transcript

Marcus Perleberg talks with Steve super about how to get children in the know financially.  

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0:00
well originally as you know from oh Brazil won bastards um originally from England
0:06
uh um been in the states for the last 25 years
0:11
and um in 2008 I was director of a very large mortgage
0:18
company so I had 500 people under me and the mortgage the mortgage industry collapsed overnight and I was left as
0:26
homeless and I'd never really looked at my own credit because I was earning so
0:31
much money it never really mattered to me because I've mostly paid cash for Stuff um but I started to learn why I still
0:38
have my notes for the last time you were on oh good job oh yeah good job oh yeah so
0:47
um anyway I started to learn credit repair and obviously it got me out of a bind and then I decided that I was going
0:53
to open a company using the same principles that I used to improve my own credit
0:59
so we're not just a credit repair company we're we're Educators we work with our clients we talk to them about
1:06
what they should and shouldn't do to up their credit score etc etc so it's more
1:12
uh an improvement on lifestyle if you like than anything else that's basically
1:18
it yeah no and I think it's important and I it's uh it's an Avenue
1:24
that as of recent I've I've kind of changed my thinking I've always been I
1:29
don't know why people don't talk about this and this is something that's super important and I'm I'm blown away that
1:35
people don't care right about this kind of stuff but I've I've kind of sat with
1:40
it and um I was just listening to a podcast where they talk about um when you talk to your children you
1:48
always talk to them like a level or two above where their actual knowledge level
1:54
is interesting so so that you can push them up to the next level yeah and it's something we do unconsciously we just
2:00
you assume that the kid's Gonna Know It And you assume the kid's going to catch on to the next thing and I kept thinking
2:06
like maybe there's something to adults like we shouldn't talk to adults that way like maybe the financial they've
2:13
already lost so many years growing up that now as an adult you talk to them about life insurance and credit repair
2:20
and all this stuff that they haven't talked about and they're like I don't know and then it's an uncomfortable thing because you shouldn't talk to
2:26
another adult about something they don't know because then it's kind of vulnerable right well just off the
2:32
Record we probably won't be talking about this I'm guessing yeah that's fine but a lot of my criticism comes do
2:39
education boards and specifically teachers so I'll tell you a quick story so this
2:46
will this will show you where my issues are where I have um at the time I have a
2:53
stepson who at the time was 11 years old so I'm going back about
2:58
five six years ago okay so he comes home from school one day and he's in tears
3:05
he's inconsolable he's crying his eyes out little kid cute little kid and he's crying and crying so I said to him hey
3:13
Nikki what what's wrong is somebody bullying you as a teacher shouting at you why are you so upset and this is
3:20
what he said Donald Trump won the election that's what he said right
3:28
and it took me about 10 minutes before I put my coat on and headed straight to his school so this is not to illustrate
3:35
my particular politics but it's funny to me that teachers get
3:40
involved in stuff that they shouldn't be involved in and stuff that they should be involved in
3:46
they're absolutely not so to give you an example I went to Parents Day for Nikki
3:53
a few months later and there on the wall they they're teachers I think it's a
3:58
math teacher if I remember correctly he had them do a project on why banks are
4:04
so good now you would think that would be a good topic except I totally disagree I think
4:11
banks are [ __ ] [ __ ] and they take advantage of people but people don't understand and when I say people I mean
4:19
the one problem that everybody has when they talk about finances they don't
4:25
understand numbers they might understand principles but they don't understand
4:30
numbers so here's the number to get your hair down so if you put money in a bank
4:35
account not all bank accounts pay interest but the major ones tend to pay you like one
4:42
percent which is by the way after tax is who knows like a point so something
4:49
ridiculous okay what's hidden from the general populace
4:54
is that cash is losing money by 1.6 per
5:01
month so in other words your spending power if you went out and spent twenty dollars right now you'd get one point six
5:09
percent less value for your money than you would last month yeah so think about that for a minute
5:15
the banks give you one percent and yet you're losing 1.6 what does that tell
5:21
you and is that one percent annual or one percent month that they're giving you and that's it one percent annual
5:26
simple you get one percent annual but you lose 1.6 months a month now here's
5:33
another thing not to confuse matters but there's a difference between simple interest and compound interest huge
5:40
interest huge difference huge huge difference so simple interest is that
5:46
one percent we're just talking about that the banks and not all banks offer it by the way but most of them do the
5:51
major ones so the one percent they give you is simple interest now
5:58
if you take a credit card out from the bank do you think that you have to pay that
6:04
credit card off in simple interest or compound interest right so again it's like people have uh
6:13
sheeple they do what the generations have done through the previous years because of a lack of education and
6:19
foresight instead of sitting down and going hold on a minute these numbers don't work for me how can this be going
6:26
on but it is and it's going on on a huge scale so things like that when I say you
6:33
know educating your kids it's little bit more than just saying hey open a bank account try and explain to them what
6:40
interest actually is what's the difference between simple interest compound interest yeah why why if you
6:46
have to pay something is compound interest bad and yet you get simple interest and it amazes me the amount of
6:54
credit cards that are offered to people with two percent cash back three percent
7:00
cash back and people think this is great yeah how can you how can you think that's great when you're paying 18.99
7:07
APR yeah and you're getting you know a couple of a couple of cents back in your bank account these are the things that
7:14
should be explained to kids yes if that makes sense yeah in a in a fun way
7:20
because I know and it's funny you talk about your parents because if you remember last uh last time I was on I
7:28
told you about you probably don't remember this but I have a nephew my mother's a twin
7:34
this is the story this is it I like it Mother's a twin and the only difference
7:40
between them is probably about 1.8 billion dollars something like that
7:46
um and her kids when they were young they sat at the dinner table and they
7:51
talked about interest rates and credit cards and how the banks work and when we
7:57
were young as I said I mean we'd either talk about stupid things like what's on the television or my favorite football
8:03
team or something like that but it didn't take me to the next level which which shows me not everybody but if you
8:10
have wealth in your family those people are far more likely to help
8:15
their kids understand the value of money and how to use it if that makes sense
8:21
yeah so let's talk about credit for a second so people I I hear this all the
8:27
time you'd be amazed oh I don't need credit I don't use credit I pay for everything in cash well in that case
8:34
you're an idiot because you work you won't qualify for a mortgage unless you've got 500 000 sitting in your bank
8:41
account or even a car unless you've got 30 40 grand sat in your bank account and
8:46
even then um you're gonna have to pay for things in full no one's going to offer you credit because they're still at that if
8:53
you've got half a million in your bank account we just talked about the simple interest where you're only earning one percent
9:00
annually and you're losing 1.6 you'd be better off putting that into a vehicle either an iul or something that's going
9:07
to get some compounding interest there you go thank you better use of that money so I like having no cash on hand
9:14
because that means my money's out doing stuff that's smart that's very smart no you're right you're you're right
9:20
that's but these are the major points I think that we can discuss and talk about but just to give you a heads up I'm I'm
9:27
very relentless on the education system and on teachers I just think they do a
9:32
really poor job yeah I gotta be honest with you on the agent side even talking
9:37
about the difference between a local bank and a credit union right like those
9:42
two are different they're dead of course but everybody looks at the brick building they're like that's a bank I'm
9:47
like nope that's a credit union they're different things they are but the thing is the the rule in our economy is he who
9:55
spends the most money to make themselves visible is going to get the most business so occasionally you'll see a
10:03
credit union advertising their services but it's pretty rare yeah how often do you how often do you see Chase Wells
10:09
Fargo all the big guys they're always on the television yeah or they're sponsoring Super Bowls or whatever
10:15
whatever so it's we're in an easy Society people want to take the easy way
10:21
out on everything yeah so I I hear what you say Marcus about credit unions and
10:27
and simple interest but you know what Chase is just around the corner I'm just gonna go there man yeah that that that's
10:33
the sort of society we're in we want I mean think about the internet okay I I
10:39
if I if I went on the internet 20 years ago about 25 years ago I'd have an AOL
10:44
you know you'd have the the thing and you have to wait okay now if you get on
10:50
the internet and it takes you less than Nano second to connect yeah
10:55
you're cursing you're really annoyed because we live in a simple throwaway
11:01
Society where we want to do the quick and fast thing not necessarily the best
11:06
thing if that makes sense to you yeah so yeah I mean these are subjects that we can cover if you're okay with that
11:12
yeah absolutely absolutely um I know that I mentioned iul I was
11:19
going to ask you about those type of things other ways for for I know we're gonna stick towards kids education uh
11:27
and I know that I started my son with an iul when he was I think three and a half
11:32
was when you could start one okay um so he's already been starting
11:38
starting that route but if you are I mean you're a parent with the step child
11:43
and what would you give or where would you start because some some parents haven't begun to talk about finances
11:50
with their kids is there one thing where you'd start a conversation I wouldn't I wouldn't start with uh iul because well
12:01
it's very tricky because to explain iul to a kid it is just gonna probably I
12:08
haven't gotten there I'm back exactly I don't know yet it's great that you're
12:14
investing on his behalf but really you know what they say you can take someone to the you know you can take someone to
12:21
the water and show them how to fish or you can teach them how to fish and then they'll live a lot longer yeah it's it's
12:27
the same thing with finances you can you know do something for them and that's very nice or you can sit down and
12:34
explain exactly what you're doing and what the benefits are so that they begin to understand it if that makes yes
12:42
it needs a couple more years of math under his belt because we're doing an addition subtraction right now well he's
12:49
you know if you look at it I mean he's he's do you say he was eight years old yep he's gonna be eight okay so uh are
12:56
they you've got basic fundamental knowledge of math should we say you're
13:03
probably you know the optimum age to me is probably about 11 or 12. so you're
13:08
probably like two or three years or I mean you can still introduce things to him gently yeah but but rather than
13:14
sitting down for half an hour and explain our ul's it'll just be lost on him so my belief is if you're gonna and
13:21
it may be different to yours if I'm going to invest in something for my kids I want to explain to them what it is and
13:29
why I chose that particular vehicle to put to put money in and what they can
13:35
expect as a result of that if that makes sense yeah so you know I'll show them
13:40
you know as I said like a bank account and I'll show them interest and will work out interest together and I'll go
13:46
see you know you put 100 in the bank you're lucky if you actually get a dollar back
13:52
so think about that for a while that's not very much no it isn't yeah so now
13:57
you want to start thinking out what are other areas that you can potentially invest I have clients and I'm not
14:03
kidding you I have clients as there is it's one all by the way Croatia just scored I have clients
14:10
um and I'm not kidding you that their kids at 11 or 12 have actually started
14:16
their own business that's awesome now when I say business don't think big capitalism you know it
14:23
might be a lemonade stand or a shoe shine stand it doesn't matter because
14:28
same as you're doing with your son you teaching them the value of money you provide the service you make a return if
14:35
that makes sense yep you know you know the problem with kids today and everybody's different Marcus so I'm not
14:42
aiming this at you but the problem is they're not like the kids that we were they have they have higher expectations
14:50
to receive a lot of things for doing nothing yeah you know that's they're a
14:55
spoiled generation this is between you and I obviously yeah you know and everybody says oh my kid's the best my
15:01
kids are the best okay so what does your kid do all day well he goes to school then he comes home he goes in his
15:07
bedroom he plays computer games comes down for dinner goes back into his bedroom goes to sleep and then goes to
15:14
school the next day that's great but two questions one what are they learning and
15:19
where's your interaction with your kids yeah because if you don't interact with your kids who are they going to interact
15:25
with other eight-year-olds well have you ever had life experience from an eight-year-old you you understand where
15:31
I'm going with this yeah so to me the fault is really that the education
15:37
system needs to take a second look at what it does but parents also want to
15:43
get more involved in their kids yeah I don't know listen if if my kid is playing Call of Duty and I call him down
15:49
to talk about aprs on credit cards for the first five ten minutes he's gonna hate me like like you wouldn't believe
15:56
but if you make it fun and you make it enjoyable and you make it's not just you
16:02
lecturing to your kid it's asking questions and letting them talk and
16:08
letting them say you know wow that's a good idea dad or no I don't like that so in other words
16:15
um and my wife taught me this by the way the greatest thing any kid can ever have
16:20
is acknowledgment from a parent that's the greatest gift wow you're you're
16:26
smart son or great job daughter that sort of uh enthusiasm can push them Way
16:33
Beyond anything else and I'm not a parental expert believe me I screw up a lot myself but you know if they come up
16:40
with an idea even if it's not the best idea in the world wow that's a really good idea let's talk about that you know
16:47
why why did you think that I want to hear your opinion yeah you know what I mean because think about it a kid sits
16:54
at a dinner table and usually they're fairly quiet and most of the conversations between the
17:00
adults so they're more like a passenger or a witness to a conversation they
17:06
don't really feel part of it they'll listen and you know they might tell their friends oh mum and dad argued at
17:12
dinner over Selena but they they don't feel an important part of the process
17:18
the learning process so you have to approach in a very and again I'm talking
17:23
to you you're a good you're a good father I can tell that but you have to approach it from from agenda from a
17:30
gentle perspective of well what's your opinion because it's really important I want to hear what you think yeah you
17:36
know that gives some credibility if if you if that makes sense to you yeah yeah and especially with my son this
17:44
week he's the star of the week because his birthday is next week and he had to bring something in for show and tell and
17:50
he's like what do you think I should bring it as much as I wanted to like oh
17:55
you should bring this because we always right I'm not the star you're this you have yeah yeah like I I can't help you
18:02
with this but you are the Star right you get to own it you get to do it but he
18:07
wanted me there so I was like I'll help you follow you around to like interject but like at the end of
18:14
the day you have to make your decision because you're the one that has to go in front of the class and talk about it yep
18:21
no you're absolutely correct that's a great way of doing it it was a tough a tough thing for me to sit back because I
18:27
mean with me and him at home like if he plays Lego he asked me to play and if he plays video games he asked me to play so
18:33
I always play with him but in the times where it's like he gets to go he's like all right let's go and I'm like no no
18:39
this is just you and that's it's a weird dynamic see Ida it's funny you say that because
18:46
I do not play computer games at all which in one way is frustrating to my
18:53
kids because I think they'd like me to but on the other hand they know that there are certain subjects they can
19:00
Broach me about and talk to me about and some they can't so I don't care what you did in Call of Duty but I do care how
19:07
you did with your homework you know right how are you doing in class are there any subjects you're struggling
19:12
with so these are things that that I want to get involved in and I don't want
19:17
to I don't want to be known as the parent who's the best at Call of Duty who gives a crap about that you know but
19:24
I can I can say will not be that parent I'm terrible my son is so much better than I am they all are they all are they
19:32
all are but the problem is what we've produced is a bedroom community think
19:37
about it that's what it is most kids under the age of 15 16 if you ask where
19:44
they are the answer is usually in the bedroom playing games you know now I I
19:50
don't think and I'm not a gaming expert but I don't think that that can broaden their knowledge or expertise or even
19:56
life skills apart from how to shoot someone on the computer you know I just
20:01
I don't get it yeah but I do try to draw comparisons because like I know kids
20:08
will have fun and their fun is way different than my fun when I was a kid I was out at the the church
20:14
lawn hitting golf balls right in the driveway home run Derbies and kick the
20:20
can and like running around the neighborhood like hold on whoa whoa you actually went outside I did I braved the
20:26
outside and I made it to 32. I know it's like again but you want to
20:35
sleep outside kids don't know what outside is you know every time we're in California the
20:41
weather here is spectacular most of the time yeah and I'll say to the kids hey come on let's go let's go to the beach
20:47
you know let's hang out let's play a bit of soccer uh no doubt it's okay I'm busy I'll I'll catch up with you later yeah I
20:54
mean there's a couple days here and there where the internet just goes out for some reason and I can't figure it out I don't exactly
21:03
[Laughter] it does happen but even when like I know
21:09
his fun is is video games and he likes Legos he likes building we've we've built like this big motorized Ferris
21:16
wheel and amusement park type thing so he does do some off technology learning which is great but I know he likes
21:24
technology so the problems solving aspect the okay I went in I was I was
21:30
playing this round and I got shot or got killed whatever are you gonna go do the same thing over again are you going to
21:36
try a different way right like those are the same things we do your homework if you get it wrong are you going to do the same thing over again are you going to
21:42
try something different just like in video games or when you're out playing basketball in the and you're with your
21:48
team and you get the ball stolen are you going to dribble down the same way are you gonna do something different so
21:53
trying to pull those that's awesome out of it they may be fewer with video games but a little bit of problem solving some
22:02
perseverance obviously it's frustrating as you people break controllers and yell at TVs so there's there's some emotional
22:09
control you try to pull it out where you can but I don't think I'll ever be able to stop
22:14
them from playing video games so I just try to hey you probably all right made the best of it I get it exactly but the
22:20
thing is if if you take that concept A step further okay what we were just talking about now this is how I would
22:27
approach it first of all I'm sure you'll agree with me there are kids out there 17 18 19
22:35
that have started online companies and are doing very well for themselves yeah you know so I would kind of use that
22:43
hook and I would say to my son okay what what let's talk about maybe you doing
22:49
something on the Internet what are you passionate about well I'm really passionate about Legos okay
22:56
why don't you create a YouTube channel where you show people how you make big
23:02
buildings using Lego mm-hmm and see now if you do that and enough
23:09
people watch it you'll begin to make money from YouTube yeah so we'll talk
23:14
about how to get likes we'll talk about how to put a video together you know then you're taking them from someone who
23:21
just plays Call of Duty to someone who is now thinking about how can I earn
23:26
money from this yeah now how do I get those likes are there any shortcuts how
23:32
do I do it why are other people getting likes and I'm not I know I hate the word likes because that's the generation that
23:39
we're in yeah but but you're teaching them about business now if he turns
23:45
around says well Dad I'd love to do that but if I really want to be very good I
23:51
need blah blah blah camera and I need blah blah blah and I need blah blah blah okay
23:57
well why don't you go on the internet and find out how much those things actually cost if you want to buy them on
24:03
Amazon have a look around they'll come back to you well Dad it's gonna cost me like two thousand dollars for all this
24:09
equipment that's a lot of money I haven't got two thousand dollars so my
24:15
next question to you son is how are you going to earn that two thousand dollars
24:20
do you understand about credit so there are places you can go that will lend you
24:25
the money yeah but you have to pay them back with interest do you think it's
24:30
worth it have you worked out how many viewers you can expect and what sort of money you can expect you know these are
24:38
things that your you're treating them like an adult but you're doing it in very simple steps
24:45
yeah because kids the great thing about kids is they learn a lot better by
24:50
themselves than they than they do from us yeah so we can talk about things but they need to reinforce it oh dad you
24:57
know I just looked on the internet and you're right you're absolutely you're right blah blah blah blah blah yeah you
25:02
know so slowly but surely from a hobby or a love that they've got you can turn
25:09
that into an economic education for them so they begin to understand how things
25:14
work yeah that makes sense yeah absolutely and it's actually funny that you brought that topic up because I
25:21
think I read that the number one career choice of that generation is an
25:26
influencer an online influencer there you go now I remember as a kid we were
25:32
like firefighter not on my list no no mine either but but
25:39
here is the thing and I know this is going to sound strange but sometimes it's actually good
25:46
for them to fail and I know that's a weird thing to say especially if there's
25:51
not too much money on the line because lessons can be learned valuable lessons
25:56
can be learned from failure yeah so you so as they grow older they'll remember
26:01
the partial failure or the failure that they had just like you're teaching your son yeah and then they'll work round oh
26:08
I remember when I did this and I lost this and blah blah blah so I'm going to try a different way moving forward yeah
26:15
and that's the thing but I will fully let my son fail it'll be it
26:22
will be in a very like it's not a heart he's not on pins and needles like if he fails he falls into this bucket of of
26:28
nails but if he's doing his math homework if he's doing his math home and
26:34
I'm watching this unfold and he's got the wrong numbers going on and he's still going and he's pumping he's
26:39
feeling good I got it at the the end he's like that was wrong and I was like yep that was wrong
26:45
I was like oh I'm like okay but we were close let's try again and by the end he'll figure
26:52
out where he went wrong and then that mistake is gone I don't need to watch that mistake again because oh she's so
26:58
mad that he did erase all of his work that he's gonna make sure he doesn't do that again and I feel like that is
27:04
awesome that's a quicker way to fix it than me standing over his shoulder being like nope don't write a five it's a four
27:09
right yeah but why is it a five or why is it a four not a five let him figure out why it's four well that's wholesome
27:15
it really is awesome but I think what what you have to I do have a lot of gray hair though
27:21
I have no hands so don't worry about it but um I think that and again I'm not a
27:28
parental expert so what I would say is that the more credit you give them what
27:34
strange word more maturity level you give them the better it is for them so
27:40
this is just a lecture of you sitting down saying no you should do this you should do this then I'm going to learn
27:45
anything that just pissed that they didn't get the right thing and now dad's
27:51
helping them out and kids like Independents but the second thing that
27:56
you're teaching them is responsibility which is hugely
28:01
important because I worry for the general Workforce when your son grows up
28:08
and becomes 16 19 whatever age if he goes to University
28:13
um but I worry about it I worry that do they understand the discipline of having
28:19
to go to work of having to arrive at a certain time having to having to report
28:25
to someone that maybe they don't like or doesn't like them yep doing jobs that
28:30
they don't particularly like but they've got to pay the rent or they've got to eat or whatever these are all valuable
28:37
lessons that I worry that the kids of today are going to go through because as
28:43
you just said they all want to be influencers which is great but logically
28:48
they can't all be influenced right right so if someone's not going to get
28:53
their their goal right and think about it this way that um the idea of being an
29:00
influencer is very very appealing because you're working from home yeah you're not you're not reporting to
29:06
anyone and most of the time you're having fun yeah that's great but if it doesn't work what are the
29:13
options ahead of you are you re are you ready for the workforce do you understand how a wage slip actually
29:20
works are you going to go self-employed or are you going to go W2 you know these
29:26
are all important decisions that kids are holding off from because they love being in the bedroom playing Call of
29:33
Duty that's what I'm saying and I know I sound very critical but trust s me all my friends their kids exactly
29:41
the same no difference honest I mean that's it is I mean you can't really be too critical
29:49
on it you're just being honest of what the patterns are those are the patterns right did you see that video it was um
29:57
I think it was on YouTube or I think I saw it on like Instagram or something it was a worker at Starbucks who was
30:03
calling for a Starbucks Union [Music]
30:11
he's working but man there's got to be some grit
30:16
there I know but I got used to I hate Starbucks as a company I really do I
30:22
think they the fact that you're paying five dollars you better put a sticker over that coffee mug
30:28
yeah that should you're right it's a Starbucks coffee
30:33
you know I I get it I get it but um I don't know if I want to teach my kid
30:40
about about unions and the benefit of joining a union or whatever or a close Shop Union I don't think that's the
30:47
subject that I want to approach because I think there are more important things for them to learn to start off with yeah
30:53
and also and also you know your kids you're not going to be able to hold the hand every day of their life yeah
31:00
they're gonna they're gonna screw up just like you screwed up and I screwed up yeah you know some things we don't
31:06
tell mum and dad and some things we do and we're looking for help I I get it but but to me
31:13
you know my my kids I don't and again this isn't a a political thing but I
31:21
don't wow Croatia just won really well I knew that'd be Brazil okay so the thing
31:29
is this um I don't want my kids to know or to
31:34
learn about the 16 or the Sexes that exist that they can decide to become
31:39
yeah I don't want them to know that if they want to know they'll find out themselves but I do want them to get
31:46
some sort of financial education I do want to get them prepared for life ahead
31:53
now this could be a California thing I don't know if it applies to you but back
31:59
to my son again so um every day of the week they have to do
32:04
gym in California is it the same way you are um uh well my son's in grade school they
32:11
don't have gym every day twice a week but I remember as a kid I had gym every day right okay so I like sports you know
32:20
obviously so uh when my when my kid comes home I always say hey what are you doing gym today
32:27
oh nothing really the teacher was like sat at the back having a coffee and we
32:32
were throwing basketballs to each other or we got got some hockey sticks out and played with that it's a waste of
32:39
freaking time so why are you not using those 40 minutes instead of teaching
32:45
kids to run a 20-minute mile or whatever sit them down and explain how Banks work
32:51
how credit cards work how credit works that's got to be more valuable I I don't
32:58
care if my kid can't run a 15 minute mile I don't care they're more important
33:04
you know that's unless he's going to become an Olympic Athlete yeah who cares but I do care that he knows how to open
33:12
a bank account how to open a savings account how to go to a credit union and what benefits the credit union has that
33:18
the banks don't you know if he wants to start a business how does he raise collateral for that business
33:25
and you know you don't need to think big you can think very small okay he wants to start doing the Legos and he wants to
33:32
make videos um and he hasn't got any credit yet where's he going to get
33:38
money from to start the bank to start the company well I could speak to Uncle Billy maybe he can give me some money
33:44
and blah blah you're teaching them to be resourceful yeah financially resourceful if that makes sense yeah and and that to
33:52
me is of greater value and as I said I'd love sport believe that I know you do too but it's a greater value to them
34:00
growing up that's the hard part about Jim being
34:05
less and less is because I learned a lot of that resourcefulness I didn't pay attention in school if I didn't do it if
34:11
I didn't know an answer I just didn't know an answer then that's fine but if I was on the field or on the court and I
34:17
didn't know an answer I'm figuring that out right I don't know how I'm gonna I'm figuring it out if I
34:25
didn't have that outlet of sports I might not have learned that skill I
34:30
don't know I'm not right and that's like every kid is different every kid has
34:36
something passionate in where they're passionate at is where they're going to learn that skill that's true and that's
34:42
where it's like yeah I don't want to play video games all day and he does not play video games all day but when he
34:47
does I know he's in it I don't have to be like hey bud come on here we're playing video games Focus
34:56
right it's hard to pull them away so that stuff it's like hey bud when you're playing video games you are focused I
35:04
need that same Focus here during math I know you don't like math and you like video games I get that but you can focus
35:10
you're just choosing not to focus right now and that's the difference and I make that known every time you're choosing
35:16
not to you're choosing not to because you can I know you can um but how to pull that out of what they
35:23
enjoy and inject it into something they don't is that like a maturity thing is that something learned I don't and
35:29
that's one part that I'm unsure of right now it's it's what I it's what I I would call personally the pickleball conundrum
35:36
so I'll tell you what I mean by that so I I most of my life have played tennis I
35:43
played squash I played badminton love all those Sports if anybody wanted to play any of those I'd be up in a minute
35:50
yeah and about six months ago a friend of mine said have you tried pickleball so I said what what the hell is
35:56
pickleball I don't know if you know what pickleball ESPN like oh really okay right yeah it's
36:03
a very it's a very skillful gamer it is it is the thing so my buddy said look I belong to a pickleball Club come along
36:10
and play a couple of games and see what you think about it like explain it as imagine you're
36:18
playing ping pong doubles ping pong but you're standing on the table right you're right like a super fast game
36:24
but you're um it's it's really cool right so the thing is I played a couple
36:29
of games and really loved it and now I'll probably played pickleball more than anything else so it it's exactly
36:36
what you were saying but taking it back to that is that you don't know what your
36:43
kid can get emotionally involved in if they've never learned it yeah so if you talk I I know it's ridiculous I keep
36:49
talking about starting your own company kids don't necessarily have to do that but you could start a company with a
36:55
friend of yours or three of you together you know so you're getting the brain
37:01
thinking in a certain way does that make sense to you yep and the thing about
37:09
credit that people don't understand is people say to me well why why should I
37:14
have good credit what does good credit get you that bad credit doesn't and the answer is simple freedom that's
37:22
what it gets you good credit means you can walk into a car dealership lease a car and you don't have to put anything
37:28
down and you still get maybe the zero percent APR for the first 12 months or
37:33
whatever um when you go buy a house you get the best rates so everything in life looks
37:40
different when your credit is good as opposed to when your credit is bad and you don't have any options so these are
37:45
things I want to teach my kids I want to sit down and you know just like you've got the piece of paper explain to them
37:51
how a credit score actually works how is it made up yeah why is why are the three
37:57
credit bureaus why isn't there just one graded Bureau why'd you see three different scores on three different
38:03
bureaus these are things that you may think they don't take in but you'd be
38:08
surprised they may take it in never have to use it for like five or six years but
38:14
still remember the lesson that Dad gave them yeah does that make sense does that make sense to you yeah
38:20
and the credit score is it's big and I know that there's there's some people out there some notion that the credit
38:27
score is like unfair or um I'm screwed because I don't have a good one so it's bad
38:33
like it's right if you had if you had five thousand dollars and three people
38:40
came to you and said hey I need a loan for five thousand dollars and you're like I can I only have five I'm gonna give it to one of you and one person has
38:47
paid back everybody the other person has paid back half and the last person's paid back nobody who are you giving the
38:54
five thousand to of course it's the same thing like you just have to be you're
38:59
close start like being financially more responsible and more people trust you
39:05
with their money that's all on the thing but on the flip side of that what you probably don't know is that first of all
39:12
80 80 that's eight zero of all credit reports are incorrect I've I've learned
39:21
that through like the credit repair system right okay so as you know that's the first thing we attack so yeah what
39:29
are some common things for the audience who don't know what are some common errors that cause your credit score to
39:34
go down well it could be like you have a late payment there are some prizes
39:40
surprising things that make your credit go down sometimes and I have to teach this to all my clients say that you have
39:47
a ten thousand dollar Visa bill that you've not paid or he is struggling to pay so you call
39:54
them up and you say hey guys let me give you five thousand and let's just close
40:00
the account okay if that's not done correctly that can be a huge negative on your credit because
40:07
what happens is the Creditor will not remove that from your credit report but
40:13
they'll say paid them paid for less than the full outstanding balance yeah which is a
40:20
negative connotation there are hundreds of these things so
40:26
again what we do is we use the Fair Credit Reporting Act as a basis and we
40:32
challenge the bureaus to get rid of the negative items that are incorrectly reporting
40:38
also and this is interesting because we talked about this a few minutes ago I don't know if you've ever looked at
40:44
your credit report but it's very common that you can have three different scores
40:49
on three bureaus that's because they're uh the way that they calculate the
40:54
scores slightly differs from Bureau to Bureau but even worse is when you see
41:00
one item like say Visa reported on all three bureaus and there's a different
41:05
balance on each one and different payment on each one they're all different
41:11
if that's the case all three should be deleted because they have to be standardized so there are certain things
41:18
that you've got to know about how to fix credit yeah you know in order to get to
41:23
the higher the higher category but I don't know if I'd want to sit with my kid and go through credit repair you
41:29
know I think I'd want to teach them probably in everything I do that the overview of things rather than going to
41:37
the minutia and if they're interested they'll ask me like Dad why why is a
41:42
credit union better than a bank what what's so great about credit unions why do you never see them on the television
41:48
you know so these are these are things that are important yeah and but to me a
41:56
financial education has to be part of the the syllabus of kids in school I
42:02
would say from the age of like 11 on once yeah I think it should be mandatory
42:08
I mean being serious unless you're going to become sort of biochemist what the hell benefit are you
42:16
gonna get from learning chemistry seriously yeah I mean I I learned chemistry for five years I hated it I've
42:23
never used it from the day I left school you know so I think we have to be more
42:30
General in the education that we offer our kids and certain countries for
42:36
instance uh some of the communist countries uh like China and they do
42:43
teach their kids the basis of financial education they do they think it's really
42:49
really important I just know don't know why we don't there was a step that China
42:54
has more people entering the engineering program than we have graduating
42:59
each grade I think more people entering into engineering we have graduating
43:06
total it's we're the scales have tipped into where our priorities are and that's
43:13
right like miles may not my son made not grow up to be a financial Guru but he had a
43:20
wallet when he was three and if he wanted to go buy something from the store he took his wallet and he paid for
43:25
it and he's starting to learn so he'll get somewhere right somewhere
43:31
well also he he'll realize things like uh bargaining power the ability to buy
43:38
on mass as opposed to buying an individual product and how much cheaper it can be these are things that you know
43:46
we don't teach our kids we don't you know just the kid will say okay Dad let's go to Costco because it's cheaper
43:53
there because they heard mum and dad say that but they don't know why yeah they don't know about bulk purchases you know
43:59
being cheaper than a single unit so I think that excuse me
44:06
kids have a desire for knowledge and the way that you treat that desire is very
44:11
important if you just ignore it it'll go away if you sit down and talk to them
44:17
and you know I I have a a friend of mine
44:22
and he has a boat he has a fishing boat and he taught his kid to fish
44:29
okay this kid is like 14 now um and I remember from the age of about
44:35
eight or nine he'd take him out on this boat and they'd be on the boat for like four or five hours and part of that was
44:43
talking about finances and the kid loved it because he loved fishing you loved being with his dad it was like a real
44:50
bonding moment where his his dad was focused on him and he learned a lot he's now in
44:57
University by the way and he's uh he's a very very smart kid but he has a good Financial understanding
45:03
and the thing is that most of us let's talk about being a parent for a second
45:10
it's friggin tough being a parent oh yeah you get you go to work you know you
45:16
may have a very difficult job that's very pressurized you come home your kids are screaming you just want some peace
45:23
and quiet you want to sit on the chair and everybody goes away for an hour I get it all parents go through the same
45:29
thing I get it um but it's prioritizing your child's future
45:36
you know and and by the way it also de-stresses you because teaching is a wonderful thing by
45:44
the way you feel a lot better you feel better for it yeah and I will say I have learned a lot of things by even just
45:51
explaining it to him all right I have to think about this concept and I have to explain it to a seven-year-old
45:57
how but then you'll click and I'm like oh it's that simple and then I can apply
46:02
that simple logic to like the life where I'm from I'm like oh that makes more
46:08
sense for me because I just got to boil it down to its basic basic level
46:14
well kids okay and you're right but again kids are slightly different to when we were younger because if you look
46:21
at incidents like for instance 9 11 okay which was a terrible terrible tragedy
46:28
it was on the news it was on the internet everywhere you looked everything was 9 11. so the chances are
46:35
that your kids saw that and then they begin to ask difficult questions when we
46:40
were kids we didn't know anything about the tragedies that went on in the world you know we didn't put our parents in a
46:47
tough position by asking them questions that they may not know the answers to yeah but but nowadays that access to
46:53
information is a thousand times bigger than when we were kids yes but but the question is
47:01
what information do you actually want them to get and what information will benefit them and what information will
47:08
give them nightmares and not be able to sleep for a long time yeah you know looking around the corner for Al-Qaeda
47:14
so I'm not saying ignore the big things that happen but the emphasis should be
47:20
more on their personal growth and development yeah that makes sense to you yeah which is a it's a tough task being
47:27
a parent it's the hardest job in the world it is because if you think about it you're a mentor to that little person
47:34
who then becomes a slightly bigger person an even bigger person but you're always going to be that person's mentor
47:41
that's a lot of responsibility if you get it wrong yeah think about that yeah
47:46
I mean I know personally speaking my dad was not a mentor to me I hardly saw him he was always out working you know and
47:54
he passed away fairly young but I don't mean I miss him as a dad but the things
48:00
I've learned I didn't learn from my parents I learned from making mistakes basically yeah yeah
48:07
it's a important that's like the the cleanest way to learn I mean obviously failing may not be clean or seem clean
48:15
but once you clean it all up and you get back on the horse it's a very good way to learn it's a very efficient way to
48:23
learn right you're right and it's also important by the way that that your
48:29
spouse or your partner is on a similar page to you yeah that's also important
48:34
yeah you know because if you're not around and your son or daughter asked you ask you other half questions there's
48:42
got to be some standardization between the two you know and you've got to let her know or him know or whatever exactly
48:49
what you're doing and what the end of the goal is if that makes sense yeah because kids are very smart and if they
48:55
see a a gap between mummy and daddy they'll exploit it that's why every kid
49:01
that's what I did I'm sure it's what you did and that was the whole that's like the can I go to my friend's house and
49:06
dad says no so he runs to Mom he's like okay he's like sure yeah there you go that's the exactly it's gonna get
49:13
there's gonna be turmoil in that one but what you let me ask you a question about dinner time so typically you have dinner
49:21
time and do you have one child or do you have more just one just one okay so what
49:26
do you do at dinner time with you with your kid what's your son's name by the way Smiles miles correct great name okay
49:34
so what do you do with Miles come dinner time would you discuss General things or we just sit at the table and talk and
49:41
eat no TV we might put on some music but yeah there's no there's no TV on there's
49:47
no homes no phones I sometimes do and I'm the
49:54
cause he's been a couple of times he's been like Dad no phones
50:01
you're right I'm sorry so so again I'm not telling you what to do because everybody's different but using the Lego
50:08
analogy you know I would open up dinner by saying okay just say you had so much
50:14
money that you didn't know what to do with it and you wanted to buy Legos with it
50:20
what would you build with the Legos blah blah blah oh that sounds good okay so
50:26
let's talk about how you could possibly do that where are you going to get the money from how does it work have you got
50:32
any money in a bank do you know how Banks work have you got a credit card what's a credit card dad then you
50:39
explain it well these nice people at the bank are going to give you money and
50:44
then charge you an exorbitant rate to pay back the money that they gave you and by the way you only get to get lots
50:51
of money from the bank if you have good credit and if you have good credit you probably don't need the money from the
50:56
bank in the first place so you can see what a weird world we live in yeah but
51:02
but kids don't know anything about this they don't know how to navigate it and
51:07
it because it's not in their periphery they're not even thinking about it yeah I
51:14
I didn't really understand the concept of fractional lending from Banks until
51:20
about I don't want to four or five years ago maybe it's like the first kind of
51:27
concept I got of really how it it worked and I don't know everything about it but the concept yeah
51:33
Arbitrage as well uh no okay maybe you have to explain that one
51:39
to me but just the concept of fractional banking because we went into the bank and I would open up the bank account
51:45
with my son and they said um no he's seven years old can't do it but when we were there they had the
51:52
vault door open and he's like Dad that's where all the bank or that's where all the money is and I was like no yeah and
51:59
he's like what do you mean and I was like the banks lend out the money they barely have any money here it's all like
52:06
help to people and they're using it to build houses like I yeah so in there is probably like valuable
52:13
things like they they keep valuable rings or or gold maybe and he was like
52:20
what about this and we just made up things that they could lock and say and that kind of stuff the whole concept of
52:26
the bank not holding all of the money they lend growing up I thought that's how it was well here's the thing with
52:33
that and you're absolutely right you're 100 correct so in let's go back in
52:38
history so in 1931 the stock market had just collapsed
52:44
we're in the middle of Hooverville things were very bad for this country and there was a huge run on the banks I
52:52
don't know if you know this but people were lining up outside to get all the money out of the bank and obviously as
52:59
you said the banks didn't have the money even in 1930s they were doing Arbitrage
53:04
is that what they were talking about with uh the movie A Wonderful Life was that during that period I don't know
53:10
if anybody has seen that movie yeah there's a yeah they want their money back right right
53:16
so what happened was the banks created something called a bank holiday it's a
53:22
brilliant brilliant piece of Economics they introduced something called a bank
53:28
holiday and what the bank holiday did was it allowed the banks to close their
53:33
doors so the public weren't allowed in until they thought it was okay to open them
53:39
again so now let's let's think for a minute
53:44
about the economy at the moment and again I I pay very close attention to
53:50
things I think that what we're experiencing right now is very similar to the events that
53:56
occurred in 2007 2006 2007. and I truly believe we're going to see a
54:04
market collapse I really believe this and I can tell you why in a minute but
54:10
during a market collapse the first thing that ensues is General panic
54:15
and of course there's a run on the banks this is why in 2008 Obama had to bail
54:21
the banks out of trouble because they didn't have enough money and basically
54:26
you said to them I'll do it but it's a one-time and a one-time only so let's go back to the state of the
54:32
stock market now we're here and it's going to be worse wow let me let me tell you why I know this it's not because I'm
54:39
a genius or I'm some sort of prophet have you heard of a gentleman called Warren Buffett yes okay I'm hoping you
54:47
touch on the stuff he says when markets go crazy well that's interesting because that's exactly what I'm going to do so Warren
54:54
Buffett has one famous say that most people know or or they neh they
55:00
bastardize it and and give their own slam but essentially Buffett says I get into the market when everybody gets out
55:07
when everybody gets in I know the other way when everybody gets out of the market I get into the market yeah so
55:13
that's what booklet says and if you don't know Warren Buffett or you've never studied him you think oh he's a
55:19
nice old guy who maybe has you know a sense of what's going on no
55:24
Warren Buffett is nothing like that in fact is probably the one of the top three
55:30
mathematicians in the entire country so he shouldn't be frowned on by any stretch of the imagination yeah so some
55:38
time ago Warren Buffett created something called the Buffett indicator
55:43
this is something you can teach your kids by the way so the buffer indicator measures the
55:49
power of the stock market against the country's GDP that's what it does okay
55:55
and it work it works on a scale of zero to one hundred
56:01
the higher up that scale the more danger that we're in
56:06
so if it goes above 100 which it can do that means the market is hugely
56:13
overvalued think of it like a thermometer so typically if you want to get into the
56:19
market the buffer indicator should be around about the 50 60 mark if you want to get out the market if it
56:26
gets to 1995 you're in danger it's time to get out yeah in 2008
56:33
the buffer indicator measured 105. [Music]
56:39
Five Points above the hundred and as a result of that the majority of Americans
56:44
in the stock market lost over 40 percent of their savings okay mm-hmm
56:52
that's what the buffer indicator is right now 120 125
56:57
that would be nice it's actually 148. ah
57:05
so here's the thing this is why I believe that when the market goes it's
57:11
going to make 2018 seem like a birthday okay so let's talk about that for a
57:17
minute stock market collapses and forget the buffer indicator for a minute Amazon are laying off thousands of people
57:25
um sorry about that Amazon are laying off thousands um you know even Apple are having
57:31
financial problems Walmart has just laid off thousands of people what is that
57:36
telling you yeah you know we're in the middle of a Russia is still in the war with the Ukraine God knows what China
57:42
are going to do and the world economy is in huge trouble Europe is screwed thank
57:48
God I'm not in Europe anymore so um if you look at it it just things look
57:54
Bleak so let me ask you a question the market collapses
58:00
everybody's losing money what is the first thing that you would do you'd go to the bank to get your money correct
58:06
you would be Banks yeah yeah have you heard of have you heard of the phrase
58:11
too big to fail yeah okay do you know what that is because
58:17
people say oh yeah I know too big to fail but they don't have they don't have a clue what it is uh basically for me
58:22
too big to fail is the company is is too entrenched in uh the movement of our
58:29
economy that if they if they blow up so many other things will fall correct we need to buffer them which is what
58:37
happened with um do you remember the whole like uh there was a social thing someone got
58:44
dragged out of an airplane and everyone was like I'm Never Gonna Fly that Airline again
58:49
okay sounds good see what I'm doing they carry too many Commerce it's it's too
58:56
big for our economy right that an airline would just go down down it just won't happen I get it and
59:02
then and then when they're bankrupt you think that like okay we'll see you you tried yeah no the government is going to
59:08
give them more money because if they fail so many other dominoes are going to fall exactly but in this respect what
59:14
we're talking about is financial organizations nothing more okay so too big to fail refers to the bank
59:21
if you get a chance after we finished Google credit Swiss or swiss credit okay
59:28
okay and see what sort of financial trouble they're in so all these major Banks Wells Fargo
59:36
went through a terrible period apart from the fraud that they committed openly with all those accounts that
59:43
never existed but I'm telling you that the banks were in trouble now there's a bit of legislation flying
59:51
around that you may not be aware of called the Dodd-Frank Act
59:57
daughter heard of it okay so the the way that the dove francat works is very simple it was enacted it was passed in
1:00:05
2010. and it refers to banking organizations because remember what I said Obama
1:00:11
bailed the banks out he said it's a one-time only thing we're not going to do it again
1:00:16
the Dodd-Frank Act bought together by Dodd and Frank in 2010 said this
1:00:23
that if the banks are in a financial situation where it's a potential
1:00:28
collapse they can take your money they can take my money and they can use it however
1:00:35
they feel free to do so and the main reason behind this is that
1:00:40
when you and you probably don't know this either when you put your money into a bank
1:00:45
you are now classed as a creditor of the bank not a depositor
1:00:51
as you would think you are hey I've just put ten thousand dollars in your bank I'm a depositor no you're not you're a
1:00:58
creditor so if we need to take that ten thousand dollars sayonara it's ours
1:01:05
that to me is very scary so one of the biggest lessons I would teach my kids is
1:01:10
not to put too much money in a bank and think of other resourceful places to put
1:01:15
it um but that's why I believe there's going to be a run on the banks and if everybody lines up to take the money out
1:01:21
there's no way in hell they can pay everybody out yeah think about it yeah it's a it's going to be a scary
1:01:28
situation there's one more thing to compound all these issues in the the uh present
1:01:37
government is a firm believer in the digital dollar are you aware of this at
1:01:42
all I'm aware of it I'm fighting it oh there you go well you know
1:01:48
um Maxine Walters is is leading the race to basically make your money digital
1:01:54
that scares the life out of me because look at Bitcoin it's there it's gone
1:02:01
it's there it's gone one press of a button one error can wipe out everything
1:02:07
you've got we literally just have a whole in if you're a conspiracy theorist or not whether you are or not we had fxt
1:02:15
is it fxt FTX FTX yeah yeah it was 40
1:02:21
billion of digital currency and then our government's like hey you know we should do digital currency exactly exactly I've
1:02:28
just learned from last week but unless you lost millions of dollars
1:02:35
as some people did and I was reading that Mr Wonderful from uh yeah I started
1:02:40
yeah he's lost something like 9 billion nine million or something but anyway
1:02:47
unless you're really involved in it people just blink and go yeah well I probably knew that was going to happen
1:02:52
let me get on with my day yeah they don't pay any attention to the lessons and that's why
1:02:58
sit down with your kids and teach them you know teach them why you know maybe
1:03:03
you think Bitcoin or its derivatives are a wonderful thing then teach them if you think it's a bad thing and there are
1:03:10
reasons to it teach them let them know what's going on because a kid with
1:03:16
information feels very important hey Dad shared this
1:03:21
with me I know I know all about Bitcoin what do you know about it yeah you know this is this is why if we prepare our
1:03:28
kids for what's going on and you can teach them what the right way is and what the wrong way is that's
1:03:35
a huge benefit yeah and you know if you don't teach them who the hell else is
1:03:41
going to teach them yeah because I I mean you can look back at yourself did you ever get that education
1:03:47
in school no so why do you think today your kids are going to get that education in school the only way they
1:03:53
get it is that's true that's very true but we didn't have the distractions that
1:03:59
the kids of today have which is what I'm trying to say yes you know we go play out until it got too dark and blah blah
1:04:06
blah you know if our parents wanted us to sit down with them then you know we wouldn't argue about it we just sit down
1:04:13
so it depends how do how do your kids view time with Daddy and mummy do they
1:04:20
view it as oh this is my dad's really cool he teaches me things all the time or okay I'm gonna get another lecture
1:04:27
from Dad about money you know and we don't listen to things we don't enjoy yeah do we you know I have like a
1:04:36
thousand podcasts I'll play like two minutes so I've been gone no I don't want to hear that yeah
1:04:41
and say has to be done in a way that appeals to them that they want to spend
1:04:48
time with you yeah and why why my fishing body is so smart is he created a
1:04:55
time and an event in which to do all these things yeah so so the kid knows
1:05:02
hey I'm going with Dad on a fishing boat he's going to teach me about money today you know or you know we talked about
1:05:08
things give them something to look forward to not oh God another lecture
1:05:13
you know and and by them interacting that's how you can do it if it's all you
1:05:21
blah blah blah blah blah then listen I didn't like hearing that from my parents
1:05:26
and kids are no different today yeah you know that makes sense no it does I mean
1:05:32
no adult likes to be lectured no kid likes to be lectured yeah that's a true thing that's true
1:05:39
um but I have one last question and I know we're gonna we're in a vacuum here you got your crystal ball sitting in
1:05:44
front of you yeah we've got a Buffett indicator of 140. we've got our government printing
1:05:51
money you said Europe is screwed if there's anything we can do now like
1:05:58
what would what would we do now to to correct or lessen the fall like the fall is
1:06:04
inevitable is there anything now that could lessen the the birth
1:06:10
if you're asking what assets I have personally to avoid all this and I have
1:06:17
a contact in the gold industry so I'm a firm believer in physical gold
1:06:23
because for a couple of reasons number one it's a tangible asset that you can actually touch and feel so it can't be
1:06:30
manipulated by the government but also huge tax benefits associated with it
1:06:35
because it's a confidential asset and I guess the biggest thing of all is that
1:06:41
during an inflationary period the major asset that goes up in value is gold yeah
1:06:47
in two let me indicate what I mean going back to 2008 the buffer indicator at 105
1:06:53
when the market collapsed the buffer indicator went down to 50. so we're
1:07:00
talking about the beginning of 2008. if you bought gold in the beginning of 2008
1:07:06
by 2011 it had almost trebled in value really because yeah because during an
1:07:12
inflationary period it does crazy things and also not a lot of people know this
1:07:18
but you can actually put physical you've got two choices with gold um I sound like a gold salesman here but
1:07:25
you've got two choices and you can either if you've got money in the bank and you're very concerned about what the
1:07:32
banks are going to do you can buy physical gold and it'll be delivered to your house so you look after it the
1:07:39
other way of buying gold is by putting it in your IRA so I don't know if you know this but
1:07:46
there are huge tax benefits associated with that so if you're in the stock market and you're very concerned you can
1:07:52
translate that into physical gold now the gold is held in a depository
1:07:57
somewhere you don't get to hold the gold in an IRA or a 401k so it's held in a
1:08:03
depository but that from there you've got three different options option number one you can keep it in there and
1:08:09
watch it grow in value option number two you can decide to take some of it out of
1:08:15
the depository and have it delivered to your house you can do that but it is a
1:08:21
taxable event because you're taking something physical out your IRA or number three you can
1:08:27
decide to sell some or all of it even inside the IRA and take a cash position
1:08:35
so just say you had a hundred thousand dollars a goal you could then buy you could uh and you wanted to sell it you
1:08:41
could sell it for a hundred thousand now you've got cash the only thing is remember what I said cash is losing 1.6
1:08:48
spending power month on month so you've got to look at what the alternatives are and I'm a very I'm a very conservative
1:08:55
investor I I never touch Bitcoin to me it was too shady I just you know and
1:09:02
again those that have great for you but it just wasn't for me I'm looking at other assets the housing market I'd stay
1:09:10
well clear of well clear off because the first thing that goes in a market
1:09:17
collapse is the housing market so if I wanted to buy a house and by the way a
1:09:23
house is a good investment I'd probably wait about nine months before I did that I'd let the market go down that house
1:09:30
values go down and buy at the bottom if you start buying now you're definitely only buying at the peak yeah so to me
1:09:38
physical gold makes sense I mean I I do all my business with one particular goal
1:09:43
dealer that I've known for 28 years he's very trustworthy and he's very well educated so I guess if any listener
1:09:50
wants to know about gold they can call me and I'll put them in touch with yeah my guy yeah
1:09:56
in your your answer with uh Bitcoin or crypto is exactly what mine is yeah
1:10:01
there's been a lot of people that have won in kudos to them I don't get it I don't understand it I
1:10:07
don't trust it so to me it's like Potawatomi it's a game you go to a casino
1:10:16
hey it was a fun game but I'm not taking that as an investment so I I agree and
1:10:22
and that's one reason why um and I know when I say this to people people look at me as if I'm weird but I
1:10:28
have never ever invested in the stock market ever and I never will because I
1:10:34
don't understand it so ever got time to tell you a quick story yeah it was a greatness okay so my
1:10:41
best friend in life is a stock broker and he's a very wealthy very well
1:10:48
educated slot broker and we hang out a lot we very rarely talk about the market and I don't talk about anything I do
1:10:55
we're just good buddies so one day out the blue and I'm going back now this must be about
1:11:02
about seven or eight years ago he called me out the blue and he said Steve I know you're not in
1:11:08
the market but do me a favor let me take your money
1:11:14
and let me place it somewhere that I know is going to make big bucks
1:11:19
so I said well as much as I love you brother I I don't know what what have
1:11:24
you got in mind this is what he said he said to me what everybody doesn't
1:11:31
know this wasn't insider trading he said but what everybody doesn't know is that Dell you know actually I'm speaking to
1:11:37
you on a Dell computer uh dell is and then we're going through a really really difficult time and they
1:11:44
were losing money in the market and everything was really bad for them and he said to me
1:11:50
I have a funny feeling that when Dell appoint the next CEO
1:11:56
this guy I've forgotten his name but he said this guy is going to produce one of the biggest turnarounds in economic
1:12:02
history and if you're holding down shares at that point you'll be laughing
1:12:08
all the way to the bank and I've followed the CEO for his last three companies yeah and he's produced
1:12:14
Miracles really so so I said to him I don't know I said
1:12:20
as much as I love you and I think you're great I'm going to take a pass on this you know but I want to hear exciting
1:12:27
stories from you and other people who've invested in down and done really well he said okay fair enough and you never
1:12:33
argued with me so six months later I was just following the market and sure
1:12:39
enough Dell stock had gone up in value considerably really and I'm sat there
1:12:47
thinking oh my God why didn't I listen to him yeah a week after
1:12:53
this all happened I turn on the news and the big headline
1:12:58
on the news is that the Dell CEO has been fired because of sexual harassment
1:13:05
oh after that Dell stock went yeah now jeez
1:13:13
why am I telling you this story not because of the sexual harassment thing but if the stock market works on a fair
1:13:19
basis just on a company's price future prospects business done I'm in
1:13:26
there it makes sense yeah okay you think you're good right but it doesn't yeah and there are so many external factors
1:13:33
that have nothing to do with anything that can hugely affect the market which hugely affects your money right and I'm
1:13:40
I'm not an expert on every company and it scares the crap out of me putting
1:13:46
money blindly where it's a crap shoot yeah I might as well go to Vegas
1:13:52
seriously right so I mean and I dabble in the I dabble in the stock market but it is just that it's a a dabble it's a
1:14:00
fun run for me I check it my TD ameritrades now my big thing is converting everything to Charles Schwab
1:14:07
because Charles Schwab right yeah TD Ameritrade yeah I I literally just buy some small stocks
1:14:13
that I think will be fun to see what happens and if I want to win if I lose I lose I have no idea that's good that's
1:14:19
not my fist that's my game I I agree if it's disposable income great have fun
1:14:25
with it seriously I I agree with that 100 but the problem is very much like Bitcoin people got greedy people put
1:14:34
everything oh look at Bitcoin this guy knows yeah you know have you ever seen the uh the
1:14:41
South Park it's like a clip where uh the little car well I don't know what the
1:14:47
little characters called the men were Carmen but Cartman goes to the bank you'll see on YouTube Cartman goes into
1:14:54
the bank to deposit all his money so he gives the money to the bank manager and
1:14:59
the first thing the bank manager says well uh it's gone I can't wait I do remember that one it's good yeah
1:15:07
it's gone yeah there you go same thing same thing I know listen I don't expect
1:15:13
to make money off everything I do yeah but I just want to make sure that I'm covered either way and why I like gold
1:15:21
so much is that and I got to be clear first of all I'm not talking about gold
1:15:26
ETFs I'm not talking about any paper gold or any paper silver because those are like crypto to me right exactly same
1:15:33
thing but the reason why I like it is it has a time frame for a return so is gold
1:15:40
always the best thing to buy no it's not but given the state of the economy at
1:15:45
the moment if I wanted to make a good profit within a two and a half to three year time frame there's nothing like
1:15:51
that out there yeah and also the uh again if you sound like a gold salesman
1:15:56
maybe it should start selling it but um the big deal is that central banks
1:16:01
around the world right now are buying more gold than ever before yeah so the
1:16:09
question remains what do they know that we don't yeah you know that's why I think when I
1:16:14
think of assets I think of conservative assets when someone says hey you can you know 16 times your money if you just do
1:16:21
this no thank you I'm not even going to take the job that honestly when you just said that was like that's a Potawatomi
1:16:28
commercial is the local Casino Ocean or area oh it is Latino commercial win big
1:16:33
you're right right two hours of work and you'll win big
1:16:39
Casino all that stuff is just straight up casino to me I got nothing and there's
1:16:46
obviously more credibility to it but to me it's the same
1:16:55
of course of course and I do when dfts came out I
1:17:01
really did like the concept of it because I got it explained by Mr Wonderful you brought him up
1:17:07
the eft's he likes are the ones that are tied to a tangible asset wow there you
1:17:13
go he wins he's big into watches he loves watches yeah yeah all right me too
1:17:19
he'll buy he'll Buy efts for uh pretty much a certification that
1:17:25
his watch is real wow so it's tied to something tangible and then it got explained to me like um do you know the
1:17:31
Green Bay Packers here in yeah so we've got our season ticket hold on
1:17:36
one sec who's the quarterback of the Green Bay Packers Aaron Rodgers still okay and what football team does does he
1:17:43
support do you know what soccer team does he support check it out Manchester city is a huge
1:17:50
match I did not know that yes he is check it out you can Google that [ __ ] I'm going
1:17:55
to there's been a couple uh a couple people in the US that have bought uh teams over there in I don't know what
1:18:02
level they're at because one thing I love is the relegation I love relics
1:18:08
oh my God yeah they wouldn't tank anymore that would be
1:18:14
great full competition I love it well well they can't do that because there's too much money invested I know and the
1:18:21
thing about English soccer is if your team is relegated from the Premier League your income is literally cut by
1:18:27
50 60 yep so that's why owners are not in favor of relegation but they came up
1:18:34
with this smart idea I love this idea of like if your team finishes bottom you get the First Choice draft correct yeah
1:18:40
is that right so there was an argument recently between a couple of teams arguing that they were both trying to
1:18:47
lose yeah so they got the first the first draft pick yeah which I think is really funny I think it's great in in
1:18:54
there's so many teams that just towards the end of the year we're not going to make the playoffs we'll put in our secondaries and then we'll just we'll
1:19:01
get a better chance for the top pick if we had a relegation where you just dropped out of the league if you just
1:19:07
gave up talk about talk about capitalism and talk about competition that's right
1:19:13
that's true I lost my train of thought with it um by the way by the way actually you've
1:19:20
hit on another subject in that if you if you go to a football match or an NFL
1:19:25
match or whatever and you happen to take your son or your daughter that's daddy
1:19:30
time yep and during daddy time is a great way of talking to them about small
1:19:36
things you know it's it's about picking your moment I think yeah that makes that
1:19:42
make sense to you yeah where there's learning moments make sure you you capitalize on them you got it um oh it
1:19:49
was the EFT with the with the season ticket holders so Green Bay has a long
1:19:55
you could apply to be a season ticket holder when you're 10 and you don't get it until you're 60. like there's a long
1:20:01
Gap because it goes by um when you submit your ticket to get in
1:20:08
please and they were saying if you could have an or EFT nft
1:20:14
nft I think it is yeah if you have one that is tied to your season ticket and
1:20:19
you're like okay I'm done being a Green Bay packet Packer season ticket holder I'm gonna sell it for
1:20:25
20 000 of the list could buy that for 20 000. and that's awesome that is a great way
1:20:33
to pull the power back to people it is I have it in the organization but would
1:20:38
they ever allow that no no no why would they get rid of their power
1:20:44
yeah that's true that's very true even though it makes sense to everybody
1:20:53
if that ever happens Count Me In but right now it's golden monkeys that gets
1:20:59
you on to like yacht parties it's so funny that you say that because
1:21:06
my brother in England deals with nfts and he's a power broker for luxury
1:21:12
Yachts oh really and the two go hand in hand yeah and he's it's funny because
1:21:18
he's tried to explain to me multiple times and what he does but he completely loses me I'm just yeah well okay
1:21:25
some people are winning at it and keep going but yeah I'm gonna I've never been to a casino either so we'll leave it
1:21:33
there I'm just thinking I have but not not to gamble so I've usually been there
1:21:38
because there are events in Vegas that I'm even speaking out or going to but yeah I get it yeah I get it so so what
1:21:45
do you think we should you know if we wrap this up now what what lesson do you think that we should teach our kids
1:21:52
about Finance what what's the takeaway from this I would ask you for me yeah I
1:21:58
think anything I don't think there's enough just if you can like you were saying you take those normal day-to-day
1:22:05
scenarios and they're having fun just inject a little bit of knowledge just a a teeny
1:22:12
bit and leave them with a cliffhanger because it's it's gonna sit with them yeah and
1:22:18
they're gonna go and they're gonna try to figure out why did why did they not complete that sentence why did they not answer that thought and they're going to
1:22:25
go out and try to find it right and I think just getting to start the pathways of their brain clicking in that that way
1:22:32
um and it's super small I don't think it's anything you don't like change your routine or do anything different just
1:22:40
don't be scared to interject the things that you want to interject to your kids you're not forming their thoughts you're
1:22:45
just giving them a little bit information I I agree I agree totally I just you know the only point that I
1:22:51
would add is that timing to me is everything so if you get
1:22:57
the timing wrong the lesson is lost and nothing is learned you know if they don't want to talk or
1:23:03
they've had a bad day at school I'm not going to risk broaching that at all but I want it I want my kids to be
1:23:12
as excited to sit with me and learn stuff as as if they were going to say
1:23:17
hey Dad can I have a driving lesson I want to learn how to drive think about how you know when you got that how
1:23:23
excited you're getting in the car yeah you know that sort of level of excitement which is not easy to achieve
1:23:30
but it's a way that you approach your kid and as I said if it's a lecture
1:23:35
nobody likes lectures you've got to make it interactive that's that would be my
1:23:41
message yeah and there's so many resources out there now that make it fun like we didn't have we didn't have the
1:23:48
green light card that I'm gonna get from my son when I was younger that has like so he's gonna get uh a tablet for his
1:23:56
birthday or for Christmas it's a cool he's getting it because he's getting this like basketball dribbling thing it's gonna help him dribble but that
1:24:03
green light thing also has an app that has things that he can read so he's working on his reading and it's about
1:24:09
things that you can do with your your card oh that's great I'm like okay perfect
1:24:15
that's a great birthday he I'm giving him money for his birthday but he doesn't know that I'm giving him
1:24:20
education I'm I'm pretty much buying him a book I'm gonna smile that's very small that's very small so the thing is you
1:24:28
can't want it more than they do that's when yeah that's tough as a parent of
1:24:34
course it is and that's the toughest thing of all but if you want it and they don't it's going nowhere yeah you've got
1:24:40
you've got to find a way of interacting with them and making it fun and interesting and also a learning
1:24:46
experience which you know if I think back to my school days my favorite
1:24:51
subject was history imagine Russian history so that's saying something
1:24:57
um yeah I know Catherine the Great Peter the Great but I loved it because my teacher was such a great dude you know
1:25:04
he made the lesson so interesting and so much fun and had us talking and how does
1:25:09
thinking that's what kids love they want to be involved in the process yeah it's
1:25:15
just you sitting down lecturing them it's gonna go above the head yeah if that makes sense yeah then we just gotta
1:25:22
somehow make uh finances fun again because I think some of the adults are beaten down by it
1:25:28
and they're like this sucks well all the things that we've known growing up are now not true yeah as I
1:25:35
said like the bank is the safest place to put your money well no it's not yeah and now you talk about parents who think
1:25:41
like talking about finances and everything financially is poison why would I interject poison to my kid and
1:25:48
you're like oh it's not that way though right exactly exactly but we are still
1:25:54
if you think about it most of the things that you've done that I've done have probably come via our parents because
1:26:00
our parents did that yeah you know but times have changed the economy has
1:26:08
changed structures have changed so the question is what have they got to do differently to what we're doing right
1:26:14
now yeah you know and you know the the minute that you've got it
1:26:20
as a parent is when your kid says to you sit down dad or mum I've got something to tell you about the economy or
1:26:27
finances or the bank then you know you've got them that's the magic point because they want to share that
1:26:34
knowledge you know if they think they're teaching you something that makes them god-like to be honest with you they love
1:26:40
that yeah that makes sense that that's a fun moment that's awesome
1:26:46
that's the Victory Parade as a parent the small Victory Parade you got it so good luck to everybody out there that
1:26:53
that is gonna start talking to kids about finances wait for the parades because they're coming they'll they will
1:26:58
be there and you got it you got it you got it well I've enjoyed today have you enjoyed oh absolutely I always
1:27:04
enjoyed talking to you and um we we are going to have you back hopefully after
1:27:10
our Buffett indicator is [Laughter]
1:27:17
check it out hopefully the crash isn't that bad but uh uh I we will be talking
1:27:22
again because obviously having somebody that's in this and and focuses on it every day is very important for our
1:27:29
audience uh we will keep in track um I'm actually reading a couple Finance
1:27:35
books right now so maybe I will be a little bit more educated next time we talk I think you're pretty smart what
1:27:41
are you reading just out of Interest Marcus uh right now it's creative cash it's a book I got from a guest that I
1:27:46
got two shows ago um about creative financing so it goes into the little things about banking
1:27:54
that I don't know so I'm learning there you go that's cool it was a super cool book so shout out to him so thank you
1:28:00
for sending me um but yeah I'm only a couple pages in because I've I've finished a book and
1:28:07
I'm jumping into that one I cannot put down a book if I haven't finished it yeah I'm the same I'm the same but we
1:28:15
will talk again um I know we went a little bit over our time today yep but it's been fun for
1:28:21
soccer to watch and there was a yeah there you go um but we will have you on again
1:28:27
um all right if anybody does have questions obviously they can get a hold of you we'll put your contact in the show notes as well okay
1:28:34
um but enjoy your warm weather we'll enjoy thanks man have a good day give give my
1:28:41
best to your son as well will do all right thank you bye bye