March 4, 2024 • 43 mins
Have you ever been held back by the fear of losing when it comes to investing? Well, you're not alone. Together with my good friend Ahmad, we break down those barriers that have historically kept many in the African American community from growing their wealth. In our latest episode, we take a deep dive into the significance of investment education, drawing parallels between nurturing your finances and investing in your health and lifestyle.
Navigating the investment world can be daunting, but with the right roadmap, anyone can become a savvy investor. This episode is a treasure trove of strategies for both beginners and seasoned players, covering everything from the convenience and lessons of platforms like Stash to the sophisticated offerings of ETRADE. Ahmad and I also shed light on the common missteps in trading – think FOMO and panic selling – and how a sprinkle of patience and a dash of discipline can cook up a solid financial future.
Looking forward, we lay out a feast of future investment opportunities, from the tangibility of real estate to the growth potential of stocks and Roth IRAs. Real-world dilemmas like land development and 401(k) consolidation are on the menu, served with a side of strategic advice. Whether you're a novice investor or looking to fine-tune your portfolio, this conversation is your invitation to join us at the table of financial empowerment.
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Transcript
Episode Transcript
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Speaker 1 (00:00):
Hey guys, welcome to another episode of Working Out
the Kings of the Podcast.
Today I'm with a good friend ofmine, amad.
We know each other for quitesome time.
I think we know each othersince freshman year of high
school.
We've had the same homeroomlike every single year, so it
kind of made me feel safe tohave this conversation with him
about investing and what exactlythat is.
(00:22):
A lot of times I think, likepeople, people of color you know
we hear the word invest and youknow it's like what we're
talking about money.
I don't want to talk about this.
So I thought why not just havea conversation with someone who
just knows a thing or two aboutit and kind of help walk you
into that situation?
So, amad, hi.
Speaker 2 (00:41):
Hello.
Speaker 1 (00:42):
How you doing.
Speaker 2 (00:44):
Doing all right.
Speaker 1 (00:45):
Doing good, good.
So what is your thoughts aboutthat comment on just me Like,
about you know, just being blackand investing, and why it seems
like we kind of get shut downfrom that experience?
Speaker 2 (01:01):
So, first and foremost, I thank for the
African American.
In general, we come from a lineof hoarding we hold on to and
we hold on to and we pass downand we pass down if at all
possible.
The notion of taking somethingthat you have and putting it
(01:22):
somewhere else with the eitherpossibility or potential of
losing it, is not something thatpeople are willing to invest in
, especially, again, africanAmericans.
Additionally, it's a knowledgefactor.
If it's something we don't know, we won't touch it.
If it's food that somebody madeand you don't know what's in it
, you're not going to eat it.
(01:42):
If you don't know wheresomething came from, you're not
going to go to it.
If there's a party and youdon't know who's there, you're
not going.
That's just how we are.
Naturally, knowing about athing makes us more inclined to
do it, and there's been a waveof that lately.
But also, at the same time,there have been counterpoints
(02:02):
that kind of made people alsopull back because it's like, oh,
maybe I don't want to do that,maybe I don't want to get
scammed, I don't want to lose mymoney.
And while I talk about, likeyou know, parties and parties,
events, food and things likethat, losing money is a lot
harder on impact than any ofthose things.
So, yeah, that's just thatgenuine fear of losing time
(02:25):
because we work hard for ourmoney.
Speaker 1 (02:28):
No, that's a real answer and I think you know,
especially like you know in ourhistory, not having things being
forced not to happen, it'sending we finally get like a leg
up and then you have the chanceof losing things.
It's just like I just worked ashard, I don't want to struggle,
and that's, like, I think,another issue as well, that the
fact that you know we kind ofstruggle.
(02:49):
So what exactly is investing?
Speaker 2 (02:54):
So, first off.
So investing is just like thelike you take your money, you
find something to put it in thathas the potential of growing
what you have into more thanwhat it is at the initial put in
.
So you put in something in $2and it comes out $10 later Great
.
Just like you want to go to thegym and you work out, you gain
(03:15):
muscle.
You've invested time in yourbody.
You want to eat better, youwant to have healthier, you have
a lifestyle.
You invest in eating healthierfood.
You invest in more time withthe doctor, you invest in more
time looking at yourself.
This leads to a better,healthier lifestyle.
We all of these things are justinvesting and you just need to
(03:36):
take the time to take theknowledge and then also apply
your money to the thing you wantto invest in.
So that can be, that can be apiggy bank method.
A good friend of ours does that.
Stocks, cd accounts, savingsaccounts, even real estate.
There are multiple avenues.
You can go through withresearch Right, I have to stress
(04:01):
that with research, if you justif it's something you do
blindly, you will get hurt.
If it's something you gobecause you heard a word of
mouth, you will get hurt Like.
You may get a little luckyevery now and then, but
lightning no strike twice andwhen you plan with money you
don't want to worry aboutlightning trying to strike it
out.
Speaker 1 (04:19):
So, since you kind of mentioned, like the different
ways that you could kind of makethe money work for you, what
exactly is the piggy bank method?
What is it so?
Speaker 2 (04:28):
that's just your basic no savings account.
You maybe got a bank account onthe side somewhere, maybe you
have a literal physical piggybank or a folder, whatever.
You take a little money, youstash away from yourself.
Next paycheck, you take alittle more money, you stash
away from yourself.
Maybe that's a dollar, maybethat's $5.
Each time you grow it and youput more and more and more, oh
(04:49):
so like a literal piggy bank.
Speaker 1 (04:51):
Okay.
Speaker 2 (04:52):
Sounds like if there's something new.
Speaker 1 (04:54):
What is it?
Speaker 2 (04:55):
No, no, no.
Like I said, a good friend ofours, your sister, explores this
method to great interest andthe point is basically to put
over time, just build upsomething that you have Now.
You could use the piggy bankmethod to actually invest.
Maybe you're like I don't wantto put the money I have up front
(05:17):
right now into investing, sothere's nothing wrong with
saving money to the side toinvest it in something later,
because one of the bigger fearsof investing is you just
throwing money.
You have right something atright now and seeing no return.
And one thing you don't want tolose the money you're putting
in.
You don't want to lose themoney's value that you put in
and you also want to see yourresult faster.
(05:38):
Sometimes that ain't always thecase.
That's more like a gamblingmindset.
You go to a casino, you putsome money in machine or you go
to a car table and your hope isthat you walk away with more
than you came in with.
More often than not, that's notthe case.
So you don't want to treatinvesting like gambling.
So with a piggy bank method,you can save up money and that's
(05:59):
how you say all right, I want$200 to be able to do this.
Put 50, 55, another 50 to theside.
Eventually you have the moneyyou need.
It takes a little longer, butyou also aren't losing the money
that you're willing to puttowards it.
So CD accounts is basically likea savings account you can't
touch.
The purpose of these is thatthey have a higher interest
(06:22):
yield than a normal savingsaccount and that you put it some
money.
You may put $300 in a bank andfor three, six, 12 months you
can't touch that money.
After that period ends, you getyou like you're able to access
that amount again and you getthe additional interest that was
(06:44):
on it onto it.
So like it might be 10%, let'ssay one's 10% interest.
That's being kind, being kind.
You throw $300 in, you wait,you wait, you wait that time
period and let's say you get$330 back.
It only seems like like oh,like you waited all that time
for $30, but at the same timeit's like it's money you work
(07:04):
touching.
You couldn't do anything withit.
Speaker 1 (07:07):
It's a little more at the same time, money you didn't
have to really work for either.
Speaker 2 (07:10):
Exactly, and then you can just take that $330.
And if you want to throw it ina CD account again, wait that
$330 becomes something else.
The whole point of all of thisis to keep manifesting interest
Real estate a little morecomplex.
That's buying property going totug, that's a whole other thing
.
But typically you want to dothat with either a group of
(07:33):
people you are confident in,business-wise close friends, or
yourself.
There's a great deal that goesinto it Finding properties,
renovating properties, viewingthe market timing and like
trying to renovate them to getsold or to build one up to rent
(07:54):
Right.
These can be extremelyprofitable things.
There are also extremely timeconsuming.
So if that's not something foryou, if you don't have the
initial money to both put intothat investment in the time,
real estate might not be for you.
But if it is, it can work outreally well.
And then we have the most basic,the one all our parents know
about, the one that they mighteven advise the most, as a
(08:15):
savings account.
Savings accounts just have flatinterest rates.
You put money into it everymonth across the year.
A little more goes in and itjust keeps building up and it's
kind of like a combination of aCD account and the piggyback
method.
You just gradually put in andyou get more for and you get
more for doing so.
It's a lot slower.
The interest rates are usuallya lot lower.
(08:36):
However, there are a lot ofbanks that have initial
introductory interest rates andstuff like that.
It takes a little research tofind them, but banks are always
kind of doing little deals hereand there.
They want your money, they wantto invest your money and, more
importantly, they want to investyour money to hold your money,
because that's how our entiresystem of credit loans and all
of that works.
(08:56):
If they don't have money tohold on to from AKA, like our
savings accounts and stuff, theycan't do the things they need
to do.
So they're willing to pay youto do those things, which is
basically the entire system.
Speaker 1 (09:07):
Wow, okay.
So if someone is like supergreen but they want to invest,
how would someone start doingthat?
Because I feel you can go theroute of having like a person
who handles your account.
I can't think of the main jobtitle, that is, the finance
(09:31):
manager or financial advisor,finance manager, financial
advisor, finance broker, all ofthose things.
However, I do know, if you haveone, if you're doing things, I
say, on an annual rate, thenthey get like a percentage of
what your money is.
So in the long run it can behelpful if you have no idea what
you're doing but you're stillkind of losing money because
(09:53):
you're paying someone to do thisfor you.
So if you wanted to do this byyourself, what would be the
easiest route to do so?
Speaker 2 (10:00):
Let's see the initial .
I would say if you're trying todo this absolutely by yourself,
start with the internet.
How to invest?
Look on YouTube, check outposts online they will.
They're all pretty generallyhelpful.
I can't really give one personor the other, but they typically
(10:21):
get you started on kind of likethe same tidbits of our
conversation.
This right here can literallyjust be the bedrock of the start
of someone going how do Iinvest and how do I start
investing?
It's just that easy, yeah, andsome people don't even realize
it, but a lot of their jobsthey're already investing and
they don't even know it Becausethey have a 401k yeah, a lot of
(10:43):
people actually don't realize401k is literally stock
investment.
You are actually paying acompany that your job has set up
basically finance brokers orfinancial advisors to invest
your money and stocks long termthat you can't touch for years.
Speaker 1 (11:05):
Oh, that's okay.
Well, yeah, so because I mean Inever really thought about that
personally until like maybe acouple of months ago, because I
was just like you know, you knowyour job and you know if your
job provides a 401k is there.
You know you get the little youknow letters in the mail.
I have one right now that I'mkind of looking at.
(11:25):
That I just got because mycompany's going through all
types of things, so they justlike hey, we're swapping
companies, just to let you know.
But you don't really think aboutit because it's one of again,
you don't touch it, you don'treally see it, so you don't
really think about it.
Speaker 2 (11:37):
Fun fact, you can even tell.
You can even contact the peopleat your 401k and tell them how
you want to invest and eventhings you want to invest in.
They have a standard slate,this and this and that, but you
can actually have actualconversation with them and say,
hey, I know you're doing like abalanced because they're like
all kind of little systems youlike oh, like I'm younger, so I
can afford to say, hey, beaggressive with my investments.
(12:00):
Or like, all right, this year Isee the stock market is not
looking a little well, so dobalance.
Do balance investments with myinvestments and they will do
that.
But people don't know thatbecause it's just kind of like
something that happens duringinsurance time you sign a paper
or you don't sign a paper.
It just kind of carries over,depending on your company.
(12:21):
You tell them how much you wantto invest or you just meet them
at whatever one gives you themost money long term and then
you ignore it.
It's just something that comesout of your paycheck.
It's very important, however,especially in our current
environment, that you actuallyknow that you have those tools
available to you.
And if you don't know, are youunsure?
Reach out to your HR departmentor your finance or someone in
(12:43):
your finance department, theywill answer your questions.
They honestly look forward toanswering your questions because
they look at Excel spreadsheetall day and they would love to
talk to people.
Speaker 1 (12:54):
So talking about like aggressive investments and
stuff like I know there's thesecompanies, or like startup
companies and they're, you know,getting their way and people go
oh, I agree with thistechnology.
I want to put a whole bunch ofmoney down.
Might not be the smartest thingto do, or it could be the
smartest thing to do if youreally know what you're talking
about.
If someone is just startingexactly I've always heard you
(13:15):
know you started with like thewhat is the S&P 500?
Or something like that.
I can be wrong, but what is theeasiest way to invest where you
know that your money is notgoing to go out the window?
Okay, so, first of the easiestway to invest.
Speaker 2 (13:31):
Do not do not thanks for that earlier but do not go
with the hype, do not go withthe startup company.
While they are worth, whilethey can potentially be worth
all things it takes, it usuallytakes a while for them to get
off the ground.
So that's money just kind ofsitting there.
And so you know, it's a littlebit of a money, just kind of
sitting there.
And the thing about stocks isthat they can be affected, just
(13:55):
like someone's popularity, likesomebody can.
One bad rumor, one thing aboutmisinformation, one mess up, and
you can lose a ton of money ina day, depending on if you're
like a day trader or a normalinvesting trader, so someone
just starting out.
First off, you need to decidethe type of trader you wanna be.
Do you just wanna put a littlemoney in, let it ride?
(14:19):
Do you wanna actively every day, sit there, like maybe like
eight o'clock in the morning,you start when the stock market
starts and you look and you want, like you're spending money
buying shares, trading shares ordo you wanna be a mix of both
of those things, someone whojust gradually looks at the
market, puts some money in,waits for something to build and
then sells and then buys again,or and someone who puts a
(14:42):
little in and lets it slide.
And to say what I just said,that goes back to what you asked
about what's aggressiveinvesting.
Using 401k, for an example, youtell your company I want you to
invest in aggressive stocks.
This means they're gonna putmoney, some of your money
towards stocks that don'tinherently pay you over time
(15:02):
we'll get to that in a secondbut rather stocks that just are
like rapidly growing, that theycan sell, rebuy, sell, rebuy,
sell, rebuy and basically thisis supposed to help your 401k
portfolio or, for example, ifyou're using it for your own to
grow faster so you can do otherinvestments.
A balanced investment mixesthat with growth investment.
(15:26):
These are called dividendstocks.
Now, dividend stocks are mypersonal favorite.
I tend to like, if I'm tellinganybody invest in the stock
market, I will tell them go forthose.
Basically, you put money into astock, don't touch it, don't do
anything with it, and you justlet it stay there.
Just like I said the thingabout banks with savings
accounts where they'll hold ourwhole entire loan business
(15:49):
banking program.
Life, as we know it, isdependent on money being in the
bank.
Companies invest in you forinvesting in them and they will
pay you, some cases maybe everysix months out of a year or
every three months out of a year.
Some companies are even everyone month out of the year A
(16:11):
certain amount.
On the dollar.
It might not seem like a lot atstart.
You might buy one share orsomething and maybe you get five
cents.
But let's say a year from nowyou have 25 shares and that five
cents has become something like$25.
And every couple of months it's25 and you can actually take
that money and just let thatkeep reinvesting in the thing
(16:33):
you're already investing in andthey keep paying you for the
thing you're already investingin until you're finally ready to
say, hey, I have enough, let mecash out, but yeah, I like
those.
Also.
Dividend investment can be areally great way long term to
set yourself up for largepassive income.
Just like I said, a companypays you out.
(16:54):
Let's say you get to a point inlife where you just have a ton
of a stock share and they payyou.
Let's say one company pays youout monthly and it might pay you
$20, $30, $40.
This takes a long time, it'snot instant, and you just
collect it.
You don't reinvest that money.
Let's just say that's my.
I'm basing my future income offthese passive things.
(17:18):
So every month I know $50 iscoming from here, $25 is coming
from there, such and such.
You can build your life aroundor you can supplement your life
around the passive income thatyou've built putting money
somewhere else.
Speaker 1 (17:36):
So off the top of your head, if you know.
If we don't know, that'stotally okay.
Could I did not accessbeforehand.
Do you know any companies offthe top of your head that offers
like those dividend shares?
Speaker 2 (17:49):
Apple every, I believe, every six months.
At&t, I believe it's everythree to six months.
O-realty, o-realty offers itevery month.
Oh, let's see Amazon Google.
No way to lie, google does notoffer dividend shares.
Google B does offer dividendshares.
(18:13):
Let's see what else we got.
Can't think of too many rightnow, but I can totally send you
a list for your viewers later on.
That would be great.
Speaker 1 (18:22):
That would be great, but no, actually just the couple
you gave already is prettyawesome, just like off the top
of your head, so I know what I'mlooking into.
So, speaking of getting intodifferent things, there's all
these different companies likethere's Robinhood, there's
E-Trade, there's Stash Anyonethat you would recommend, or you
(18:44):
don't recommend any things thatI haven't mentioned, that you
know of, that people can use tostart doing investments.
Speaker 2 (18:51):
Let's see.
So Robinhood would be theeasiest place to go if you're
using a mobile platform like aphone, something like that, on
the go.
It's got a very interactiveuser base.
They've gotten a lot betterwith customer service over the
years.
They've had a few scandals but,to be perfectly honest, it's
because it's a site that dealsupfront with the user.
(19:15):
Most stock market things arelike you tell a person and they
tell a person.
There's an entire establishment.
It rarely interacts with oneperson to the other.
So when scandals, problems,stuff like that happen, you, the
person on the end, never hearof it.
You'll never hear about it.
So since Robinhood was so outand popular and out in the
forefront, yeah, things happen.
(19:39):
Yeah, things happen.
Stash is good as well.
It throws a lot of educationalinformation out there.
So again, first time investorsit's all in a little platform,
all of the articles.
Like if you look up a business,there might be an article about
that business.
Maybe you want to know moreabout them, maybe you want to
know more about investing ortypes of investing.
(20:01):
It's all there.
Robinhood kind of offers it,but you get it in emails and
they have like random posts, butit's usually just random things
that are going on every singleday in the stock market itself.
So it's a lot lessself-contained.
So if you're looking for likean initial really start of the
stock market, I think Stashwould be the good place to go.
If you think you're a littlemore comfortable enough to just
(20:23):
kind of have basic comprehensionof buying and selling things,
you can move to Robinhood.
Additionally cool thing thesesites all offer interactive
sharing things.
So if you're like I'm done withStash and I want to move to
Robinhood, you can.
It's just like a bank where yousaying I want to take my money
out of here and put it here, youcan do that.
Now there's a buy off and selloff of all the shares on one
(20:45):
thing you know.
Then it's bought out and likeit's all moved to the other.
But you can do that Importantduring tax time though, like if,
because, like, everything yousell is taxable income.
So remember that if you ever goto do that, or if you're buying
, sudden selling shares ingeneral, it's all taxable income
those forms will come in yourmail and you need to put that on
(21:06):
your tax forms during that timeSomething people don't think
about when they do that, butthat's a whole another thing.
Let's see eTrade.
Etrade is a lot moretraditional.
It's a website.
It's just like I'm most likelogging into a bank.
I think it's gotten a littlemore in their active over the
last few years.
(21:26):
I haven't used it in a goodlong time, but yeah, it's very.
It's very bare bones.
It's like I already know how toinvest putting somebody in
account, buying some shares,waiting.
There's a lot less interactivehelp because it's just an older
platform.
So typically it was like yourstandard everyday stock trader
that was using stuff like that.
(21:47):
Not sure I'll say emerging 2020investor, because I think
that's when a lot of peopledeeply got invested into the
stock market.
Speaker 1 (21:57):
Yeah, I mean, I think so, I mean we can really go
outside.
So it's like what else are yougonna do?
Speaker 2 (22:03):
Which wasn't a bad thing.
It brought a lot of off thepeople.
Speaker 1 (22:06):
It did.
I think it definitely made methink a little bit more about
where my money is going and howI'm spending my money, Cause it
wasn't as easily, I couldn'tjust grab it.
It was like okay, now I have tosit here and think about it and
comprehend the things that I'mdoing, Right, so all right.
Amai, when it comes to trading,have you ever had any mistakes
(22:30):
yourself?
Speaker 2 (22:31):
Oh yes, low mistakes.
There were the early onmistakes about fear of missing
out, over investing, underinvesting, pulling out my money
too soon because I got scared,all of those things.
Earlier I said you have to knowwhat kind of trader you wanna
(22:54):
be, because you have todiscipline your mindset for that
.
Let's say you put some money inand this is me saying a mistake
on my account, but using as anexample, you put some money into
a stock and you're like, allright, yay, look at me, I
invested.
And you look at it tomorrow andit's dropped like 25% or
(23:16):
something.
And like you put in $50 and youhave $35 and they're like, no,
my money.
And you're like I don't wannalose anymore money.
So you immediately sell yourshare to get your $35 to at
least have that.
And then a day later the stockgoes up 75% and it's like, oh,
(23:37):
that $50 could have been $65 oreven $70 and now it's only $35.
Because I got so scared oflosing my money, I pulled out.
I did that a ton because I wasso scared early on because I
didn't have the actual money Ineeded to invest.
I was taking money that I hadat that moment, putting it into
(24:00):
something and immediately hopingfor more.
And that is a huge mistake,because if it goes down, you
lose.
If it goes up, you win.
That's a 50-50 chance.
You don't wanna set your lifeup for a 50-50 chance when it
comes to money.
So that's why I said put moneyto the side for investing and
(24:21):
then invest.
That way, if that money goes upor down, you have the time and
the patience to deal with itwithout the worry of losing it.
And again, that goes back toour biggest fear of losing money
.
That was a huge mistake.
Another one was I was all overthe crypto craze.
(24:42):
Crypto had some huge winners,crypto had some big losers and,
depending on where you were inthat, you missed out or you
messed up.
I did both, going back toinvesting money you have versus
investing money you've saved.
I put in 2020, there's acryptocurrency called Ethereum
(25:07):
that was worth $400.
And I had $400 worth ofEthereum, but I also had bills.
So I sold my shares of Ethereumto pay some bills.
Very short term cited, butbills needs to be paid, or
things happen to you right now.
(25:28):
Now, this wasn't money I hadbeen saving, this is money I had
put in and we're just like allright, I'm gonna let that ride,
not realizing problems comealong the way.
So I took that money out andthen Ethereum jumped to $900 and
$1,500.
Today, ethereum's valued at$2,200.
(25:49):
That would have all come fromjust me letting that $400 sit
there, but that was something Ineeded to spend because I needed
money now.
Speaker 1 (25:58):
Right.
Speaker 2 (25:58):
Which all goes back to saving.
That's why I keep coming backto it Having money to the side
to invest or putting money tothe side to invest that money
that you know I don't want totouch it.
It's just like maybe you wantedto make that CD account and you
like they took that money fromyou and you can't touch it.
You have to treat it like that,you just have to, otherwise you
(26:18):
will get hurt.
And when you get hurt you likebills coming.
You start looking at it like Icould take that from that and
that from that and that fromthat and that money out there
saving accounts there.
All right, I'm at my bills andnow you look at your savings
You're like, oh shit, I don'thave anything.
I've done that numerous amountsof times and it sucks because
(26:38):
I've like the advice I'm sayingit sound like I've actually
helped people go.
Oh, like I'm out of, just likeI just came back from Dubai.
Sends sends a picture of likethem looking at a tiger and I'm
like that's dope, that's realdope.
I'm so happy for you.
I'm looking at a tiger stripecatwalk in front of me as I buy
like a, like a, like a full forfour at Wendy's and I'm just
(26:59):
like that could have been me.
But yeah so fear, fear ofmissing out big one.
Investing money that you aren'tready to part with is another
one.
Speaker 1 (27:12):
Yes, that's a big one .
Speaker 2 (27:14):
Yes, like if you're not ready to part with it, don't
invest it Period.
Well, you miss out probably.
What?
Like what you get, what youhave won or lost, who knows?
You didn't invest it.
You can't think like that.
Our generation, millennials,especially we deal with fear of
missing out expressly.
So someone's like this is themoney, this is the money, this
(27:34):
is the money is like oh shit, Iwant to be on the money to, I'm
going to miss it out, and youcan miss it and be perfectly
fine and maybe they did well andyou just need to be happy for
everybody to do well, but thatain't you.
The best way to invest, from myobservation, is to just
gradually, gradually, keepinvesting and then pull out,
(27:58):
trying to win the jackpot.
Don't just even statisticallyspeaking, like when you come,
when you talk about progress onanything.
If you go to the gym for oneweek and you feel like you made
a ton of progress and then youdon't for like three weeks and
then you go again for and you gohard again for one week, your
(28:18):
progress is staggered.
Your results are going to beslow and if you go consistently
every single week and you dowhat you need to do, you're
going to see results developover time and become quite more
defined than anything you woulddo in burst.
Money is the same way you work.
Speaker 1 (28:38):
Yeah, I'm sorry.
Speaker 2 (28:40):
You work for years and years to get money to live a
better life.
You go to work every single dayand you get paid a paycheck at
the end of it.
That's a buildup of all ofthose days of work.
If you can do that for somebodyelse, you can do it for
yourself.
Speaker 1 (28:58):
I would say that my thoughts when they come to like
starting to put money intoinvestments is, you know, again,
it's money that you're notusing for like bills or anything
.
So I kind of think about it.
The mindset is, I'm not agambler, but if I was a gambler
like if I walk into a casino andI told them I got $20 and I'm
going to use this $20.
(29:18):
If I lose it, I won't feel badbecause it was slated just to
gamble with.
I'm not going to go to the ATMand pull out another $20.
You know, I'm just going tostick to what I said and, to be
fair, when I started doing smallinvestments here and there, it
made me feel comfortable withthat idea.
You know, just knowing that it'sjust like, it's just a little
bit here and there.
(29:39):
I'm not ready to put a wholefoot in, but I could put a tour
to, you know, at this moment.
So you know, you know I usedstash, I used rocket, honestly,
you know, kind of just likeanother savings, which I will
say when it comes to rocket, anddo give you like the choice of
do you want to like saveaggressively, do you want to be
moderate?
Do you know?
(29:59):
And you know, it can be alittle as like $3 here or like
$10 here, but it's always just alittle bit by little bit.
So that's the best thing Right,and it's so little that I don't
even really think about it untilthey send me a message.
I'm like oh, that's what I?
Three dollars, okay.
So it's just something small.
I mean, of course you can get alittle bit more aggressive, but
that's not where I'm at in mylife, so that's what I do.
I mean, it's just fine, youknow wherever you are, just
(30:23):
start, you know exactly.
So I mean it.
But it does make me feel goodjust to know that oh, okay,
that's a little money somewhereelse for different rainy day
situations, and I think that'skind of the purpose of it.
You never want to just haveexactly what you see in front of
you, because if that's it, youknow that's you know, it's kind
of just not enough, not in theworld that we live in right now.
Speaker 2 (30:47):
That is a lot of people's realities.
But like, yes, you, even if itlike, even if it doesn't seem
like, oh, like, putting that,put in a dollar to the side,
they're gonna do nothing for me,but not absolutely put that
dollar to the side.
That dollar will eventuallybecome to, to, will become for
you have, like it like if it's,if it's slow, it's slow, but you
have to do it, because justjust taking what you have and
(31:09):
applying it to what you haveright now won't do it for you
later because it's right now.
Yeah.
Speaker 1 (31:16):
I mean we're looking at times and we're looking at,
like you know, not to get toooff topic, but you know, like
what did they call?
Like you retire and you was alittle off of Medicaid and
everything that's.
Speaker 2 (31:29):
Social.
Speaker 1 (31:29):
Security.
Yeah, that's the that'sdepleting right now.
Speaker 2 (31:32):
That's depleting.
I'm not.
I mean, I'm not.
I don't want to be likeapocalyptic about it, but I
don't, even I don't thinkwhatever our generation will
have for for Social Security ifit still exists by that time,
because we're talking, we'retalking what.
Let's see what we're not.
When I'm mid 30s now that'sanother, that's another 30 years
give or take going into likeretirement, I don't, for I don't
(31:55):
foresee Social Security, if itstill exists, being something.
Speaker 1 (32:00):
It's fundamental for us.
Speaker 2 (32:02):
Yeah, yeah, we, we, we definitely need other avenues
, other things to look into.
I path needs to be built outnow, earlier and later.
I'm not going to say that ageand worry about it.
My mom, my mom's retiring nextyear and, for example, like her
401k she's been paying into foryears but she's retiring while
(32:23):
the stock market was literallygoing going as potentially going
into a crash.
And I'm not sure if that's yourmoney, that's what you have.
And imagine investing yourentire life and that's like for
us.
We invest our entire life andwe get to that point and that
might be a market crash thatyear and you lose 25% of your
(32:46):
life investment.
That's a lot, it's a lot ofmoney.
So you need extra avenues, youneed other ways to come, you
need things to like, have set upso you can be comfortable, not
just now, but in the future.
Speaker 1 (33:02):
So another question, because I'm just thinking of all
these things what do yourecommend for people to like
read for they can understandlike things a little bit better
when it comes to finances,because you can go to Yahoo
Finance, but that is like awhole different language for me.
Speaker 2 (33:16):
I was gonna say Yahoo Finance can be quite complex.
They start using the languageand stuff like that and it's
just like huh, yeah, yahoo isdefinitely a place you go after
you're comfortable withinvesting where you're like I
wanna look up a business and dothat Again.
Youtube videos for beginninginvestors is really plentiful.
(33:39):
If you're looking for one, tellit to like your particular
ethnicity.
That's there too.
There are tons of blackinvestors all over the place and
they love to share knowledge.
You wanna go to Twitter andlook up black investments
hashtag black investments,hashtag black income.
You will find a wealth ofknowledge.
It's on Facebook as well.
(34:00):
Yeah, all of the information isthere.
If you're looking forday-to-day articles, though,
like I said, yahoo is probablyone of your best bets.
Sadly, it is quite complexsometimes, but it can be helpful
once you know what to look for.
Speaker 1 (34:21):
Gotcha.
So what about you, amit?
What do you plan on doing inthe next few years when it comes
to investments, but also, doyou plan on grouping and trying
to help people yourself?
Speaker 2 (34:34):
So earlier in 2020 and 2021, I attempted to take
the things I was learning aboutthe stock market and share them
with people at large, Made aFacebook group nothing big, I
wanna say, Gatt's out about 50people.
I plan on doing it againsometime.
I've learned a great deal morethan I did before and even then,
(34:56):
if the people in that group Idon't know if they'll watch this
or not had listened to me, theyshould be sitting on some
pretty stuff right now.
But I plan on continuedinvestments.
Like I said, if you don't keepdoing it, it won't grow A little
(35:17):
real estate investment.
I've been looking into stuff inNew Orleans and I've already
owned a lot.
Building a house, however, is alot more expensive than buying
one.
Didn't know that.
So I'm either gonna let thatland just rise in value as our
priority value goes up, or I'llbuild something on it and rent.
(35:39):
But that's a very 20,.
We in 2023, that might be 20,28, 20, 30 kind of thing.
We're at the point in our lifewhere you look at things in
years, not months.
Speaker 1 (35:51):
Right.
Speaker 2 (35:52):
Oh my God, yeah, I'm looking at it right here.
It's like all right, in 10 years, I want this, In five years, I
want this.
You can't be like, oh, in sixmonths, I want this, or if you
do, it's gotta be a reallyshort-term goal.
So that'll be me.
Y'all keep investing things.
Like Apple, like I said,o-realty I love that company.
I love getting monthly payoutsthat just keep reinvesting
(36:16):
themselves and just looking atthings and building out my own
stock portfolio.
Also looking into a Roth IRA,which is basically like a 401K,
but you own that Still money youcan't touch, but it also builds
itself up over time.
So it's kind of like doubledipping in investment.
But in this case it's just withyou and your money tends to
(36:40):
move from job to job that you goto, but it's always in control
of someone else.
I kind of like the fact thatthere's something I can invest
in and I have control of and Ican choose one to put money into
it, but I still can't touch it.
Speaker 1 (36:53):
All right.
Oh, that kind of reminds me youmight not know the answer to
this, and that's also okay,Cause I was let's try the
internet like listen to you.
I remember I worked at a jobsome years ago and it was a 401K
, but I left the job and I'veworked plenty of jobs since then
.
Speaker 2 (37:09):
So I was wondering.
Speaker 1 (37:10):
I was like, how do I get in contact with that company
to make sure that the moneyfrom that 401K is like it's with
the one I have now?
And as I said that there wasthis little, on that day I was
on Instagram and there was thisapp called Beagle and it was
like Beagle makes sure all yourmoney's together.
And I was just like, oh, you'vebeen listening.
(37:31):
But also I was just like I'venever heard of this.
I didn't want to use it.
So I was like how does one makesure that if they have money in
other companies, that they'reable to put it with what they
have now?
Do you know?
Speaker 2 (37:44):
As far as that one goes, I don't.
To my knowledge, typically thatmoney when you leave a company
is supposed to be given to youas a part of, like, a bank
account or something like that,and it's supposed to like stay
somewhere.
That, like it's still acts likea 401K, or maybe it's just
direct money, but you're notsupposed to spend that money.
You're supposed to like eitherput it in to another like 401K
(38:07):
when you move a company, orthere's supposed to be a
transfer process between onebank and another.
I know you're supposed tocontact them If that's not the
case on that part, I'm just I'ma little green, but I know it's
very.
It's very conversational basedwith like between departments
where you're at now and whereyou used to be, because it's
still your money at the end ofthe day and it's owed to you, so
(38:29):
it's owed to be invested.
So if, like they, you think youhave money out there somewhere
from an old job or something,you contact the finance
department.
They should be able to lookinto that for you.
They're obligated to even likeit doesn't matter if you don't
work there anymore.
They're obligated for yourmoney when it comes to that, the
app you talked about.
So there's actually a lot ofthese now and, like I think I'm
(38:54):
using I think I'm using oneright now called Rocket.
Basically, what it does is likeyou log into all of the things
that you use Netflix, hulu, allof those things and it tracks
your monthly payouts, your likeyour investments, to thank your
bills and at the end of themonth, or maybe like at the end
(39:16):
of the week, it says hey, youspent this much on food.
Speaker 1 (39:19):
Oh yes, I know I have Rocket, that I do know, but I
never actually put my 401K onthere.
But maybe I should.
Speaker 2 (39:27):
I'm about to say, if you can, I think there's a
metric for it.
But honestly, at the end of theday, you should always be able
to go see a 401K site and, ifthere is a site, or call them
and ask them hey, how much havemy investments grown this year,
percentage wise?
Speaker 1 (39:43):
All right, you so smart, I'm gonna do some things.
I'm gonna do all right, you doall right.
So if anyone had any questions,how can they reach you?
Speaker 2 (39:54):
You can find me on Instagram at AJheart88.
You can find me on Facebook atAmaya Jackson.
Also, if they just want toreach out to you and you give
them my name, you can do that.
Speaker 1 (40:06):
You can, yeah, but I will do that if someone asks.
But just thank you for takingsome time and going over
everything with us when it comesto investing.
Like I'm really appreciative ofthat because I mean, yes, I was
a part of your group but Iadmit I was definitely one of
the ones who read everythinglike, oh, that sounds great, and
(40:27):
then we just chicken out and donothing.
But I'm at a space now where Ido feel a little bit more
comfortable with just having, Iwanna say, disposable income,
but some money that I can put tothe side and just be like I'm
okay investing this.
Speaker 2 (40:41):
Yeah, I think it's a very age-based thing too.
You get more comfortable doingthings with money the older you
get.
I think when you're younger youdo random frivolous young stuff
with money new clothes, shoesand stuff like that.
But at this point it's like Ibought a house, I'm looking on
Amazon at tables and shit, right.
It's just you're a lot morecomfortable with larger spending
(41:06):
at more solid things.
And yeah, it comes at differentages for all of us.
But I think the closer you getto your 30s and you keep going
through those 30s, we're notgonna say at what point of those
30s.
Speaker 1 (41:19):
Because everyone's different.
Speaker 2 (41:21):
Yeah.
Speaker 1 (41:23):
But yeah, all right.
Well, thank you again, guys.
I hope you got something out ofthis.
If not, I'm sorry, but I dohope you did get something out
of this, because this is a longand firm point for anyone,
whether it's like where to startinvesting, or whether it's oh,
I can start using other websitesother than the one I'm on,
(41:43):
because I don't comfortable withit, or just even literally
buying a piggy bank and justputting money to the side.
So thank you for all of thosethings and, again, I hope y'all
have a good day.
So bye, you're waving.
They can't see you wave.
Speaker 2 (41:59):
Oh.
Speaker 1 (42:01):
All right, say bye.
Speaker 2 (42:03):
Bye.
Speaker 1 (42:04):
There you go.
Hey guys, welcome to another episode of Working Out
the Kings of the Podcast.
Today I'm with a good friend ofmine, amad.
We know each other for quitesome time.
I think we know each othersince freshman year of high
school.
We've had the same homeroomlike every single year, so it
kind of made me feel safe tohave this conversation with him
about investing and what exactlythat is.
(00:22):
A lot of times I think, likepeople, people of color you know
we hear the word invest and youknow it's like what we're
talking about money.
I don't want to talk about this.
So I thought why not just havea conversation with someone who
just knows a thing or two aboutit and kind of help walk you
into that situation?
So, amad, hi.
Speaker 2 (00:41):
Hello.
Speaker 1 (00:42):
How you doing.
Speaker 2 (00:44):
Doing all right.
Speaker 1 (00:45):
Doing good, good.
So what is your thoughts aboutthat comment on just me Like,
about you know, just being blackand investing, and why it seems
like we kind of get shut downfrom that experience?
Speaker 2 (01:01):
So, first and foremost, I thank for the
African American.
In general, we come from a lineof hoarding we hold on to and
we hold on to and we pass downand we pass down if at all
possible.
The notion of taking somethingthat you have and putting it
(01:22):
somewhere else with the eitherpossibility or potential of
losing it, is not something thatpeople are willing to invest in
, especially, again, africanAmericans.
Additionally, it's a knowledgefactor.
If it's something we don't know, we won't touch it.
If it's food that somebody madeand you don't know what's in it
, you're not going to eat it.
(01:42):
If you don't know wheresomething came from, you're not
going to go to it.
If there's a party and youdon't know who's there, you're
not going.
That's just how we are.
Naturally, knowing about athing makes us more inclined to
do it, and there's been a waveof that lately.
But also, at the same time,there have been counterpoints
(02:02):
that kind of made people alsopull back because it's like, oh,
maybe I don't want to do that,maybe I don't want to get
scammed, I don't want to lose mymoney.
And while I talk about, likeyou know, parties and parties,
events, food and things likethat, losing money is a lot
harder on impact than any ofthose things.
So, yeah, that's just thatgenuine fear of losing time
(02:25):
because we work hard for ourmoney.
Speaker 1 (02:28):
No, that's a real answer and I think you know,
especially like you know in ourhistory, not having things being
forced not to happen, it'sending we finally get like a leg
up and then you have the chanceof losing things.
It's just like I just worked ashard, I don't want to struggle,
and that's, like, I think,another issue as well, that the
fact that you know we kind ofstruggle.
(02:49):
So what exactly is investing?
Speaker 2 (02:54):
So, first off.
So investing is just like thelike you take your money, you
find something to put it in thathas the potential of growing
what you have into more thanwhat it is at the initial put in
.
So you put in something in $2and it comes out $10 later Great
.
Just like you want to go to thegym and you work out, you gain
(03:15):
muscle.
You've invested time in yourbody.
You want to eat better, youwant to have healthier, you have
a lifestyle.
You invest in eating healthierfood.
You invest in more time withthe doctor, you invest in more
time looking at yourself.
This leads to a better,healthier lifestyle.
We all of these things are justinvesting and you just need to
(03:36):
take the time to take theknowledge and then also apply
your money to the thing you wantto invest in.
So that can be, that can be apiggy bank method.
A good friend of ours does that.
Stocks, cd accounts, savingsaccounts, even real estate.
There are multiple avenues.
You can go through withresearch Right, I have to stress
(04:01):
that with research, if you justif it's something you do
blindly, you will get hurt.
If it's something you gobecause you heard a word of
mouth, you will get hurt Like.
You may get a little luckyevery now and then, but
lightning no strike twice andwhen you plan with money you
don't want to worry aboutlightning trying to strike it
out.
Speaker 1 (04:19):
So, since you kind of mentioned, like the different
ways that you could kind of makethe money work for you, what
exactly is the piggy bank method?
What is it so?
Speaker 2 (04:28):
that's just your basic no savings account.
You maybe got a bank account onthe side somewhere, maybe you
have a literal physical piggybank or a folder, whatever.
You take a little money, youstash away from yourself.
Next paycheck, you take alittle more money, you stash
away from yourself.
Maybe that's a dollar, maybethat's $5.
Each time you grow it and youput more and more and more, oh
(04:49):
so like a literal piggy bank.
Speaker 1 (04:51):
Okay.
Speaker 2 (04:52):
Sounds like if there's something new.
Speaker 1 (04:54):
What is it?
Speaker 2 (04:55):
No, no, no.
Like I said, a good friend ofours, your sister, explores this
method to great interest andthe point is basically to put
over time, just build upsomething that you have Now.
You could use the piggy bankmethod to actually invest.
Maybe you're like I don't wantto put the money I have up front
(05:17):
right now into investing, sothere's nothing wrong with
saving money to the side toinvest it in something later,
because one of the bigger fearsof investing is you just
throwing money.
You have right something atright now and seeing no return.
And one thing you don't want tolose the money you're putting
in.
You don't want to lose themoney's value that you put in
and you also want to see yourresult faster.
(05:38):
Sometimes that ain't always thecase.
That's more like a gamblingmindset.
You go to a casino, you putsome money in machine or you go
to a car table and your hope isthat you walk away with more
than you came in with.
More often than not, that's notthe case.
So you don't want to treatinvesting like gambling.
So with a piggy bank method,you can save up money and that's
(05:59):
how you say all right, I want$200 to be able to do this.
Put 50, 55, another 50 to theside.
Eventually you have the moneyyou need.
It takes a little longer, butyou also aren't losing the money
that you're willing to puttowards it.
So CD accounts is basically likea savings account you can't
touch.
The purpose of these is thatthey have a higher interest
(06:22):
yield than a normal savingsaccount and that you put it some
money.
You may put $300 in a bank andfor three, six, 12 months you
can't touch that money.
After that period ends, you getyou like you're able to access
that amount again and you getthe additional interest that was
(06:44):
on it onto it.
So like it might be 10%, let'ssay one's 10% interest.
That's being kind, being kind.
You throw $300 in, you wait,you wait, you wait that time
period and let's say you get$330 back.
It only seems like like oh,like you waited all that time
for $30, but at the same timeit's like it's money you work
(07:04):
touching.
You couldn't do anything withit.
Speaker 1 (07:07):
It's a little more at the same time, money you didn't
have to really work for either.
Speaker 2 (07:10):
Exactly, and then you can just take that $330.
And if you want to throw it ina CD account again, wait that
$330 becomes something else.
The whole point of all of thisis to keep manifesting interest
Real estate a little morecomplex.
That's buying property going totug, that's a whole other thing
.
But typically you want to dothat with either a group of
(07:33):
people you are confident in,business-wise close friends, or
yourself.
There's a great deal that goesinto it Finding properties,
renovating properties, viewingthe market timing and like
trying to renovate them to getsold or to build one up to rent
(07:54):
Right.
These can be extremelyprofitable things.
There are also extremely timeconsuming.
So if that's not something foryou, if you don't have the
initial money to both put intothat investment in the time,
real estate might not be for you.
But if it is, it can work outreally well.
And then we have the most basic,the one all our parents know
about, the one that they mighteven advise the most, as a
(08:15):
savings account.
Savings accounts just have flatinterest rates.
You put money into it everymonth across the year.
A little more goes in and itjust keeps building up and it's
kind of like a combination of aCD account and the piggyback
method.
You just gradually put in andyou get more for and you get
more for doing so.
It's a lot slower.
The interest rates are usuallya lot lower.
(08:36):
However, there are a lot ofbanks that have initial
introductory interest rates andstuff like that.
It takes a little research tofind them, but banks are always
kind of doing little deals hereand there.
They want your money, they wantto invest your money and, more
importantly, they want to investyour money to hold your money,
because that's how our entiresystem of credit loans and all
of that works.
(08:56):
If they don't have money tohold on to from AKA, like our
savings accounts and stuff, theycan't do the things they need
to do.
So they're willing to pay youto do those things, which is
basically the entire system.
Speaker 1 (09:07):
Wow, okay.
So if someone is like supergreen but they want to invest,
how would someone start doingthat?
Because I feel you can go theroute of having like a person
who handles your account.
I can't think of the main jobtitle, that is, the finance
(09:31):
manager or financial advisor,finance manager, financial
advisor, finance broker, all ofthose things.
However, I do know, if you haveone, if you're doing things, I
say, on an annual rate, thenthey get like a percentage of
what your money is.
So in the long run it can behelpful if you have no idea what
you're doing but you're stillkind of losing money because
(09:53):
you're paying someone to do thisfor you.
So if you wanted to do this byyourself, what would be the
easiest route to do so?
Speaker 2 (10:00):
Let's see the initial .
I would say if you're trying todo this absolutely by yourself,
start with the internet.
How to invest?
Look on YouTube, check outposts online they will.
They're all pretty generallyhelpful.
I can't really give one personor the other, but they typically
(10:21):
get you started on kind of likethe same tidbits of our
conversation.
This right here can literallyjust be the bedrock of the start
of someone going how do Iinvest and how do I start
investing?
It's just that easy, yeah, andsome people don't even realize
it, but a lot of their jobsthey're already investing and
they don't even know it Becausethey have a 401k yeah, a lot of
(10:43):
people actually don't realize401k is literally stock
investment.
You are actually paying acompany that your job has set up
basically finance brokers orfinancial advisors to invest
your money and stocks long termthat you can't touch for years.
Speaker 1 (11:05):
Oh, that's okay.
Well, yeah, so because I mean Inever really thought about that
personally until like maybe acouple of months ago, because I
was just like you know, you knowyour job and you know if your
job provides a 401k is there.
You know you get the little youknow letters in the mail.
I have one right now that I'mkind of looking at.
(11:25):
That I just got because mycompany's going through all
types of things, so they justlike hey, we're swapping
companies, just to let you know.
But you don't really think aboutit because it's one of again,
you don't touch it, you don'treally see it, so you don't
really think about it.
Speaker 2 (11:37):
Fun fact, you can even tell.
You can even contact the peopleat your 401k and tell them how
you want to invest and eventhings you want to invest in.
They have a standard slate,this and this and that, but you
can actually have actualconversation with them and say,
hey, I know you're doing like abalanced because they're like
all kind of little systems youlike oh, like I'm younger, so I
can afford to say, hey, beaggressive with my investments.
(12:00):
Or like, all right, this year Isee the stock market is not
looking a little well, so dobalance.
Do balance investments with myinvestments and they will do
that.
But people don't know thatbecause it's just kind of like
something that happens duringinsurance time you sign a paper
or you don't sign a paper.
It just kind of carries over,depending on your company.
(12:21):
You tell them how much you wantto invest or you just meet them
at whatever one gives you themost money long term and then
you ignore it.
It's just something that comesout of your paycheck.
It's very important, however,especially in our current
environment, that you actuallyknow that you have those tools
available to you.
And if you don't know, are youunsure?
Reach out to your HR departmentor your finance or someone in
(12:43):
your finance department, theywill answer your questions.
They honestly look forward toanswering your questions because
they look at Excel spreadsheetall day and they would love to
talk to people.
Speaker 1 (12:54):
So talking about like aggressive investments and
stuff like I know there's thesecompanies, or like startup
companies and they're, you know,getting their way and people go
oh, I agree with thistechnology.
I want to put a whole bunch ofmoney down.
Might not be the smartest thingto do, or it could be the
smartest thing to do if youreally know what you're talking
about.
If someone is just startingexactly I've always heard you
(13:15):
know you started with like thewhat is the S&P 500?
Or something like that.
I can be wrong, but what is theeasiest way to invest where you
know that your money is notgoing to go out the window?
Okay, so, first of the easiestway to invest.
Speaker 2 (13:31):
Do not do not thanks for that earlier but do not go
with the hype, do not go withthe startup company.
While they are worth, whilethey can potentially be worth
all things it takes, it usuallytakes a while for them to get
off the ground.
So that's money just kind ofsitting there.
And so you know, it's a littlebit of a money, just kind of
sitting there.
And the thing about stocks isthat they can be affected, just
(13:55):
like someone's popularity, likesomebody can.
One bad rumor, one thing aboutmisinformation, one mess up, and
you can lose a ton of money ina day, depending on if you're
like a day trader or a normalinvesting trader, so someone
just starting out.
First off, you need to decidethe type of trader you wanna be.
Do you just wanna put a littlemoney in, let it ride?
(14:19):
Do you wanna actively every day, sit there, like maybe like
eight o'clock in the morning,you start when the stock market
starts and you look and you want, like you're spending money
buying shares, trading shares ordo you wanna be a mix of both
of those things, someone whojust gradually looks at the
market, puts some money in,waits for something to build and
then sells and then buys again,or and someone who puts a
(14:42):
little in and lets it slide.
And to say what I just said,that goes back to what you asked
about what's aggressiveinvesting.
Using 401k, for an example, youtell your company I want you to
invest in aggressive stocks.
This means they're gonna putmoney, some of your money
towards stocks that don'tinherently pay you over time
(15:02):
we'll get to that in a secondbut rather stocks that just are
like rapidly growing, that theycan sell, rebuy, sell, rebuy,
sell, rebuy and basically thisis supposed to help your 401k
portfolio or, for example, ifyou're using it for your own to
grow faster so you can do otherinvestments.
A balanced investment mixesthat with growth investment.
(15:26):
These are called dividendstocks.
Now, dividend stocks are mypersonal favorite.
I tend to like, if I'm tellinganybody invest in the stock
market, I will tell them go forthose.
Basically, you put money into astock, don't touch it, don't do
anything with it, and you justlet it stay there.
Just like I said the thingabout banks with savings
accounts where they'll hold ourwhole entire loan business
(15:49):
banking program.
Life, as we know it, isdependent on money being in the
bank.
Companies invest in you forinvesting in them and they will
pay you, some cases maybe everysix months out of a year or
every three months out of a year.
Some companies are even everyone month out of the year A
(16:11):
certain amount.
On the dollar.
It might not seem like a lot atstart.
You might buy one share orsomething and maybe you get five
cents.
But let's say a year from nowyou have 25 shares and that five
cents has become something like$25.
And every couple of months it's25 and you can actually take
that money and just let thatkeep reinvesting in the thing
(16:33):
you're already investing in andthey keep paying you for the
thing you're already investingin until you're finally ready to
say, hey, I have enough, let mecash out, but yeah, I like
those.
Also.
Dividend investment can be areally great way long term to
set yourself up for largepassive income.
Just like I said, a companypays you out.
(16:54):
Let's say you get to a point inlife where you just have a ton
of a stock share and they payyou.
Let's say one company pays youout monthly and it might pay you
$20, $30, $40.
This takes a long time, it'snot instant, and you just
collect it.
You don't reinvest that money.
Let's just say that's my.
I'm basing my future income offthese passive things.
(17:18):
So every month I know $50 iscoming from here, $25 is coming
from there, such and such.
You can build your life aroundor you can supplement your life
around the passive income thatyou've built putting money
somewhere else.
Speaker 1 (17:36):
So off the top of your head, if you know.
If we don't know, that'stotally okay.
Could I did not accessbeforehand.
Do you know any companies offthe top of your head that offers
like those dividend shares?
Speaker 2 (17:49):
Apple every, I believe, every six months.
At&t, I believe it's everythree to six months.
O-realty, o-realty offers itevery month.
Oh, let's see Amazon Google.
No way to lie, google does notoffer dividend shares.
Google B does offer dividendshares.
(18:13):
Let's see what else we got.
Can't think of too many rightnow, but I can totally send you
a list for your viewers later on.
That would be great.
Speaker 1 (18:22):
That would be great, but no, actually just the couple
you gave already is prettyawesome, just like off the top
of your head, so I know what I'mlooking into.
So, speaking of getting intodifferent things, there's all
these different companies likethere's Robinhood, there's
E-Trade, there's Stash Anyonethat you would recommend, or you
(18:44):
don't recommend any things thatI haven't mentioned, that you
know of, that people can use tostart doing investments.
Speaker 2 (18:51):
Let's see.
So Robinhood would be theeasiest place to go if you're
using a mobile platform like aphone, something like that, on
the go.
It's got a very interactiveuser base.
They've gotten a lot betterwith customer service over the
years.
They've had a few scandals but,to be perfectly honest, it's
because it's a site that dealsupfront with the user.
(19:15):
Most stock market things arelike you tell a person and they
tell a person.
There's an entire establishment.
It rarely interacts with oneperson to the other.
So when scandals, problems,stuff like that happen, you, the
person on the end, never hearof it.
You'll never hear about it.
So since Robinhood was so outand popular and out in the
forefront, yeah, things happen.
(19:39):
Yeah, things happen.
Stash is good as well.
It throws a lot of educationalinformation out there.
So again, first time investorsit's all in a little platform,
all of the articles.
Like if you look up a business,there might be an article about
that business.
Maybe you want to know moreabout them, maybe you want to
know more about investing ortypes of investing.
(20:01):
It's all there.
Robinhood kind of offers it,but you get it in emails and
they have like random posts, butit's usually just random things
that are going on every singleday in the stock market itself.
So it's a lot lessself-contained.
So if you're looking for likean initial really start of the
stock market, I think Stashwould be the good place to go.
If you think you're a littlemore comfortable enough to just
(20:23):
kind of have basic comprehensionof buying and selling things,
you can move to Robinhood.
Additionally cool thing thesesites all offer interactive
sharing things.
So if you're like I'm done withStash and I want to move to
Robinhood, you can.
It's just like a bank where yousaying I want to take my money
out of here and put it here, youcan do that.
Now there's a buy off and selloff of all the shares on one
(20:45):
thing you know.
Then it's bought out and likeit's all moved to the other.
But you can do that Importantduring tax time though, like if,
because, like, everything yousell is taxable income.
So remember that if you ever goto do that, or if you're buying
, sudden selling shares ingeneral, it's all taxable income
those forms will come in yourmail and you need to put that on
(21:06):
your tax forms during that timeSomething people don't think
about when they do that, butthat's a whole another thing.
Let's see eTrade.
Etrade is a lot moretraditional.
It's a website.
It's just like I'm most likelogging into a bank.
I think it's gotten a littlemore in their active over the
last few years.
(21:26):
I haven't used it in a goodlong time, but yeah, it's very.
It's very bare bones.
It's like I already know how toinvest putting somebody in
account, buying some shares,waiting.
There's a lot less interactivehelp because it's just an older
platform.
So typically it was like yourstandard everyday stock trader
that was using stuff like that.
(21:47):
Not sure I'll say emerging 2020investor, because I think
that's when a lot of peopledeeply got invested into the
stock market.
Speaker 1 (21:57):
Yeah, I mean, I think so, I mean we can really go
outside.
So it's like what else are yougonna do?
Speaker 2 (22:03):
Which wasn't a bad thing.
It brought a lot of off thepeople.
Speaker 1 (22:06):
It did.
I think it definitely made methink a little bit more about
where my money is going and howI'm spending my money, Cause it
wasn't as easily, I couldn'tjust grab it.
It was like okay, now I have tosit here and think about it and
comprehend the things that I'mdoing, Right, so all right.
Amai, when it comes to trading,have you ever had any mistakes
(22:30):
yourself?
Speaker 2 (22:31):
Oh yes, low mistakes.
There were the early onmistakes about fear of missing
out, over investing, underinvesting, pulling out my money
too soon because I got scared,all of those things.
Earlier I said you have to knowwhat kind of trader you wanna
(22:54):
be, because you have todiscipline your mindset for that
.
Let's say you put some money inand this is me saying a mistake
on my account, but using as anexample, you put some money into
a stock and you're like, allright, yay, look at me, I
invested.
And you look at it tomorrow andit's dropped like 25% or
(23:16):
something.
And like you put in $50 and youhave $35 and they're like, no,
my money.
And you're like I don't wannalose anymore money.
So you immediately sell yourshare to get your $35 to at
least have that.
And then a day later the stockgoes up 75% and it's like, oh,
(23:37):
that $50 could have been $65 oreven $70 and now it's only $35.
Because I got so scared oflosing my money, I pulled out.
I did that a ton because I wasso scared early on because I
didn't have the actual money Ineeded to invest.
I was taking money that I hadat that moment, putting it into
(24:00):
something and immediately hopingfor more.
And that is a huge mistake,because if it goes down, you
lose.
If it goes up, you win.
That's a 50-50 chance.
You don't wanna set your lifeup for a 50-50 chance when it
comes to money.
So that's why I said put moneyto the side for investing and
(24:21):
then invest.
That way, if that money goes upor down, you have the time and
the patience to deal with itwithout the worry of losing it.
And again, that goes back toour biggest fear of losing money
.
That was a huge mistake.
Another one was I was all overthe crypto craze.
(24:42):
Crypto had some huge winners,crypto had some big losers and,
depending on where you were inthat, you missed out or you
messed up.
I did both, going back toinvesting money you have versus
investing money you've saved.
I put in 2020, there's acryptocurrency called Ethereum
(25:07):
that was worth $400.
And I had $400 worth ofEthereum, but I also had bills.
So I sold my shares of Ethereumto pay some bills.
Very short term cited, butbills needs to be paid, or
things happen to you right now.
(25:28):
Now, this wasn't money I hadbeen saving, this is money I had
put in and we're just like allright, I'm gonna let that ride,
not realizing problems comealong the way.
So I took that money out andthen Ethereum jumped to $900 and
$1,500.
Today, ethereum's valued at$2,200.
(25:49):
That would have all come fromjust me letting that $400 sit
there, but that was something Ineeded to spend because I needed
money now.
Speaker 1 (25:58):
Right.
Speaker 2 (25:58):
Which all goes back to saving.
That's why I keep coming backto it Having money to the side
to invest or putting money tothe side to invest that money
that you know I don't want totouch it.
It's just like maybe you wantedto make that CD account and you
like they took that money fromyou and you can't touch it.
You have to treat it like that,you just have to, otherwise you
(26:18):
will get hurt.
And when you get hurt you likebills coming.
You start looking at it like Icould take that from that and
that from that and that fromthat and that money out there
saving accounts there.
All right, I'm at my bills andnow you look at your savings
You're like, oh shit, I don'thave anything.
I've done that numerous amountsof times and it sucks because
(26:38):
I've like the advice I'm sayingit sound like I've actually
helped people go.
Oh, like I'm out of, just likeI just came back from Dubai.
Sends sends a picture of likethem looking at a tiger and I'm
like that's dope, that's realdope.
I'm so happy for you.
I'm looking at a tiger stripecatwalk in front of me as I buy
like a, like a, like a full forfour at Wendy's and I'm just
(26:59):
like that could have been me.
But yeah so fear, fear ofmissing out big one.
Investing money that you aren'tready to part with is another
one.
Speaker 1 (27:12):
Yes, that's a big one .
Speaker 2 (27:14):
Yes, like if you're not ready to part with it, don't
invest it Period.
Well, you miss out probably.
What?
Like what you get, what youhave won or lost, who knows?
You didn't invest it.
You can't think like that.
Our generation, millennials,especially we deal with fear of
missing out expressly.
So someone's like this is themoney, this is the money, this
(27:34):
is the money is like oh shit, Iwant to be on the money to, I'm
going to miss it out, and youcan miss it and be perfectly
fine and maybe they did well andyou just need to be happy for
everybody to do well, but thatain't you.
The best way to invest, from myobservation, is to just
gradually, gradually, keepinvesting and then pull out,
(27:58):
trying to win the jackpot.
Don't just even statisticallyspeaking, like when you come,
when you talk about progress onanything.
If you go to the gym for oneweek and you feel like you made
a ton of progress and then youdon't for like three weeks and
then you go again for and you gohard again for one week, your
(28:18):
progress is staggered.
Your results are going to beslow and if you go consistently
every single week and you dowhat you need to do, you're
going to see results developover time and become quite more
defined than anything you woulddo in burst.
Money is the same way you work.
Speaker 1 (28:38):
Yeah, I'm sorry.
Speaker 2 (28:40):
You work for years and years to get money to live a
better life.
You go to work every single dayand you get paid a paycheck at
the end of it.
That's a buildup of all ofthose days of work.
If you can do that for somebodyelse, you can do it for
yourself.
Speaker 1 (28:58):
I would say that my thoughts when they come to like
starting to put money intoinvestments is, you know, again,
it's money that you're notusing for like bills or anything
.
So I kind of think about it.
The mindset is, I'm not agambler, but if I was a gambler
like if I walk into a casino andI told them I got $20 and I'm
going to use this $20.
(29:18):
If I lose it, I won't feel badbecause it was slated just to
gamble with.
I'm not going to go to the ATMand pull out another $20.
You know, I'm just going tostick to what I said and, to be
fair, when I started doing smallinvestments here and there, it
made me feel comfortable withthat idea.
You know, just knowing that it'sjust like, it's just a little
bit here and there.
(29:39):
I'm not ready to put a wholefoot in, but I could put a tour
to, you know, at this moment.
So you know, you know I usedstash, I used rocket, honestly,
you know, kind of just likeanother savings, which I will
say when it comes to rocket, anddo give you like the choice of
do you want to like saveaggressively, do you want to be
moderate?
Do you know?
(29:59):
And you know, it can be alittle as like $3 here or like
$10 here, but it's always just alittle bit by little bit.
So that's the best thing Right,and it's so little that I don't
even really think about it untilthey send me a message.
I'm like oh, that's what I?
Three dollars, okay.
So it's just something small.
I mean, of course you can get alittle bit more aggressive, but
that's not where I'm at in mylife, so that's what I do.
I mean, it's just fine, youknow wherever you are, just
(30:23):
start, you know exactly.
So I mean it.
But it does make me feel goodjust to know that oh, okay,
that's a little money somewhereelse for different rainy day
situations, and I think that'skind of the purpose of it.
You never want to just haveexactly what you see in front of
you, because if that's it, youknow that's you know, it's kind
of just not enough, not in theworld that we live in right now.
Speaker 2 (30:47):
That is a lot of people's realities.
But like, yes, you, even if itlike, even if it doesn't seem
like, oh, like, putting that,put in a dollar to the side,
they're gonna do nothing for me,but not absolutely put that
dollar to the side.
That dollar will eventuallybecome to, to, will become for
you have, like it like if it's,if it's slow, it's slow, but you
have to do it, because justjust taking what you have and
(31:09):
applying it to what you haveright now won't do it for you
later because it's right now.
Yeah.
Speaker 1 (31:16):
I mean we're looking at times and we're looking at,
like you know, not to get toooff topic, but you know, like
what did they call?
Like you retire and you was alittle off of Medicaid and
everything that's.
Speaker 2 (31:29):
Social.
Speaker 1 (31:29):
Security.
Yeah, that's the that'sdepleting right now.
Speaker 2 (31:32):
That's depleting.
I'm not.
I mean, I'm not.
I don't want to be likeapocalyptic about it, but I
don't, even I don't thinkwhatever our generation will
have for for Social Security ifit still exists by that time,
because we're talking, we'retalking what.
Let's see what we're not.
When I'm mid 30s now that'sanother, that's another 30 years
give or take going into likeretirement, I don't, for I don't
(31:55):
foresee Social Security, if itstill exists, being something.
Speaker 1 (32:00):
It's fundamental for us.
Speaker 2 (32:02):
Yeah, yeah, we, we, we definitely need other avenues
, other things to look into.
I path needs to be built outnow, earlier and later.
I'm not going to say that ageand worry about it.
My mom, my mom's retiring nextyear and, for example, like her
401k she's been paying into foryears but she's retiring while
(32:23):
the stock market was literallygoing going as potentially going
into a crash.
And I'm not sure if that's yourmoney, that's what you have.
And imagine investing yourentire life and that's like for
us.
We invest our entire life andwe get to that point and that
might be a market crash thatyear and you lose 25% of your
(32:46):
life investment.
That's a lot, it's a lot ofmoney.
So you need extra avenues, youneed other ways to come, you
need things to like, have set upso you can be comfortable, not
just now, but in the future.
Speaker 1 (33:02):
So another question, because I'm just thinking of all
these things what do yourecommend for people to like
read for they can understandlike things a little bit better
when it comes to finances,because you can go to Yahoo
Finance, but that is like awhole different language for me.
Speaker 2 (33:16):
I was gonna say Yahoo Finance can be quite complex.
They start using the languageand stuff like that and it's
just like huh, yeah, yahoo isdefinitely a place you go after
you're comfortable withinvesting where you're like I
wanna look up a business and dothat Again.
Youtube videos for beginninginvestors is really plentiful.
(33:39):
If you're looking for one, tellit to like your particular
ethnicity.
That's there too.
There are tons of blackinvestors all over the place and
they love to share knowledge.
You wanna go to Twitter andlook up black investments
hashtag black investments,hashtag black income.
You will find a wealth ofknowledge.
It's on Facebook as well.
(34:00):
Yeah, all of the information isthere.
If you're looking forday-to-day articles, though,
like I said, yahoo is probablyone of your best bets.
Sadly, it is quite complexsometimes, but it can be helpful
once you know what to look for.
Speaker 1 (34:21):
Gotcha.
So what about you, amit?
What do you plan on doing inthe next few years when it comes
to investments, but also, doyou plan on grouping and trying
to help people yourself?
Speaker 2 (34:34):
So earlier in 2020 and 2021, I attempted to take
the things I was learning aboutthe stock market and share them
with people at large, Made aFacebook group nothing big, I
wanna say, Gatt's out about 50people.
I plan on doing it againsometime.
I've learned a great deal morethan I did before and even then,
(34:56):
if the people in that group Idon't know if they'll watch this
or not had listened to me, theyshould be sitting on some
pretty stuff right now.
But I plan on continuedinvestments.
Like I said, if you don't keepdoing it, it won't grow A little
(35:17):
real estate investment.
I've been looking into stuff inNew Orleans and I've already
owned a lot.
Building a house, however, is alot more expensive than buying
one.
Didn't know that.
So I'm either gonna let thatland just rise in value as our
priority value goes up, or I'llbuild something on it and rent.
(35:39):
But that's a very 20,.
We in 2023, that might be 20,28, 20, 30 kind of thing.
We're at the point in our lifewhere you look at things in
years, not months.
Speaker 1 (35:51):
Right.
Speaker 2 (35:52):
Oh my God, yeah, I'm looking at it right here.
It's like all right, in 10 years, I want this, In five years, I
want this.
You can't be like, oh, in sixmonths, I want this, or if you
do, it's gotta be a reallyshort-term goal.
So that'll be me.
Y'all keep investing things.
Like Apple, like I said,o-realty I love that company.
I love getting monthly payoutsthat just keep reinvesting
(36:16):
themselves and just looking atthings and building out my own
stock portfolio.
Also looking into a Roth IRA,which is basically like a 401K,
but you own that Still money youcan't touch, but it also builds
itself up over time.
So it's kind of like doubledipping in investment.
But in this case it's just withyou and your money tends to
(36:40):
move from job to job that you goto, but it's always in control
of someone else.
I kind of like the fact thatthere's something I can invest
in and I have control of and Ican choose one to put money into
it, but I still can't touch it.
Speaker 1 (36:53):
All right.
Oh, that kind of reminds me youmight not know the answer to
this, and that's also okay,Cause I was let's try the
internet like listen to you.
I remember I worked at a jobsome years ago and it was a 401K
, but I left the job and I'veworked plenty of jobs since then
.
Speaker 2 (37:09):
So I was wondering.
Speaker 1 (37:10):
I was like, how do I get in contact with that company
to make sure that the moneyfrom that 401K is like it's with
the one I have now?
And as I said that there wasthis little, on that day I was
on Instagram and there was thisapp called Beagle and it was
like Beagle makes sure all yourmoney's together.
And I was just like, oh, you'vebeen listening.
(37:31):
But also I was just like I'venever heard of this.
I didn't want to use it.
So I was like how does one makesure that if they have money in
other companies, that they'reable to put it with what they
have now?
Do you know?
Speaker 2 (37:44):
As far as that one goes, I don't.
To my knowledge, typically thatmoney when you leave a company
is supposed to be given to youas a part of, like, a bank
account or something like that,and it's supposed to like stay
somewhere.
That, like it's still acts likea 401K, or maybe it's just
direct money, but you're notsupposed to spend that money.
You're supposed to like eitherput it in to another like 401K
(38:07):
when you move a company, orthere's supposed to be a
transfer process between onebank and another.
I know you're supposed tocontact them If that's not the
case on that part, I'm just I'ma little green, but I know it's
very.
It's very conversational basedwith like between departments
where you're at now and whereyou used to be, because it's
still your money at the end ofthe day and it's owed to you, so
(38:29):
it's owed to be invested.
So if, like they, you think youhave money out there somewhere
from an old job or something,you contact the finance
department.
They should be able to lookinto that for you.
They're obligated to even likeit doesn't matter if you don't
work there anymore.
They're obligated for yourmoney when it comes to that, the
app you talked about.
So there's actually a lot ofthese now and, like I think I'm
(38:54):
using I think I'm using oneright now called Rocket.
Basically, what it does is likeyou log into all of the things
that you use Netflix, hulu, allof those things and it tracks
your monthly payouts, your likeyour investments, to thank your
bills and at the end of themonth, or maybe like at the end
(39:16):
of the week, it says hey, youspent this much on food.
Speaker 1 (39:19):
Oh yes, I know I have Rocket, that I do know, but I
never actually put my 401K onthere.
But maybe I should.
Speaker 2 (39:27):
I'm about to say, if you can, I think there's a
metric for it.
But honestly, at the end of theday, you should always be able
to go see a 401K site and, ifthere is a site, or call them
and ask them hey, how much havemy investments grown this year,
percentage wise?
Speaker 1 (39:43):
All right, you so smart, I'm gonna do some things.
I'm gonna do all right, you doall right.
So if anyone had any questions,how can they reach you?
Speaker 2 (39:54):
You can find me on Instagram at AJheart88.
You can find me on Facebook atAmaya Jackson.
Also, if they just want toreach out to you and you give
them my name, you can do that.
Speaker 1 (40:06):
You can, yeah, but I will do that if someone asks.
But just thank you for takingsome time and going over
everything with us when it comesto investing.
Like I'm really appreciative ofthat because I mean, yes, I was
a part of your group but Iadmit I was definitely one of
the ones who read everythinglike, oh, that sounds great, and
(40:27):
then we just chicken out and donothing.
But I'm at a space now where Ido feel a little bit more
comfortable with just having, Iwanna say, disposable income,
but some money that I can put tothe side and just be like I'm
okay investing this.
Speaker 2 (40:41):
Yeah, I think it's a very age-based thing too.
You get more comfortable doingthings with money the older you
get.
I think when you're younger youdo random frivolous young stuff
with money new clothes, shoesand stuff like that.
But at this point it's like Ibought a house, I'm looking on
Amazon at tables and shit, right.
It's just you're a lot morecomfortable with larger spending
(41:06):
at more solid things.
And yeah, it comes at differentages for all of us.
But I think the closer you getto your 30s and you keep going
through those 30s, we're notgonna say at what point of those
30s.
Speaker 1 (41:19):
Because everyone's different.
Speaker 2 (41:21):
Yeah.
Speaker 1 (41:23):
But yeah, all right.
Well, thank you again, guys.
I hope you got something out ofthis.
If not, I'm sorry, but I dohope you did get something out
of this, because this is a longand firm point for anyone,
whether it's like where to startinvesting, or whether it's oh,
I can start using other websitesother than the one I'm on,
(41:43):
because I don't comfortable withit, or just even literally
buying a piggy bank and justputting money to the side.
So thank you for all of thosethings and, again, I hope y'all
have a good day.
So bye, you're waving.
They can't see you wave.
Speaker 2 (41:59):
Oh.
Speaker 1 (42:01):
All right, say bye.
Speaker 2 (42:03):
Bye.
Speaker 1 (42:04):
There you go.
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