Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Because you're waking up with in the morning, kis, let
us have in one bye, good morning, good morning. So
I've talked a little bit about cleaning my dad's house
out and getting the estate ready and just like all
the adulting things that have come across my life as
of recent and I've shared some of those things with you,
but one of them is financials and kind of where
(00:23):
to begin with them. So today I have Aerial Fields
and Katie Fay, who work for Primerica in the studio
this morning. Hi, good morning, goo.
Speaker 2 (00:31):
Good morning, good morning, and we're.
Speaker 1 (00:32):
Going to talk about wealth management, but not so much
the numbers, because I feel like if the math isn't
mathing for you, and you're like, I don't really know
what I'm doing, and I feel completely in the dark
about my finances and I know that I have that
supposed to have a bank account and a savings account
and a retirement account, but that's kind of all I know,
and like I kind of just you know, swipe it
(00:53):
under the rug until something changes.
Speaker 2 (00:55):
Right.
Speaker 1 (00:55):
Does that happen quite a bit all the time?
Speaker 2 (00:58):
Yeah? I feel like that was me.
Speaker 1 (00:59):
Up in un till recently. We're going to talk about
the box theory. Just three things that you need to
know on how to upgrade your wealth management. It feel
like a little bit better about it. Maybe you're not
completely you know, experienced in it. We're going to walk
you through it. Good morning, area, good morning, good morning.
Talk about the one thing that you see all the
(01:20):
time with families in the middle class with wealth. That's
just like, oh, I wish I had known this, what's
going on a lot.
Speaker 2 (01:27):
Of times, it's just simple changes. Uh, putting a plan
in place. It's going to make the biggest difference, is Okay,
what we do, what I recommend usually is going to
be using the three box system.
Speaker 1 (01:38):
Okay, talk about the three box Yeah, and it's like
not it's going to sound mathy, but just there's three
key things here to math.
Speaker 2 (01:44):
I promise, I promise. So in this example, you know,
we'll use a thirty year old family and I bet
you can agree most people can agree that we're all
wasting about one hundred bucks a week. Hello, Target, Yeah exactly,
it's Tarbucks, Starbucks, Target, Tarbuck, that is just put them together,
put them together. But you know, we're wasting about one
hundred bucks a week. And if we were to use
(02:04):
this system, the three boxes, it'll put things in place.
Our first box is going to be our income protection,
our life insurance. This is going to in this example,
we put about one hundred bucks a month towards a
plan that will put five hundred dollars in protection, five
hundred thousand dollars in protection on both the family for
the spouses, and ten thousand on the children. Okay, okay.
(02:26):
We always want to make sure that the family is
protected in the event that somebody does pass away. Worst
case scenario. You know, you can't replace a person, but
you can replace the income. Our second box is going
to be our short term savings, so one hundred bucks
a month towards this. Usually this is going to be
about three to six months of expenses saved up into
this box, okay. And our third box is going to
(02:47):
be our long term account or our freedom account, if
you will. This is going to be something like roth IRA,
and then we're going to be putting about two hundred
dollars a month into this box. And then once we
have that short term savings built up, we'll also roll
over that extra hundred dollars towards that, so overall, three
hundred dollars a month into your long term account. Historically,
you know, growing at nine percent. At the end of
(03:09):
a thirty year period, your roth IRA is going to
have five hundred and fifty seven thousand dollars built up.
Speaker 1 (03:14):
Wow, just from taking your Target and Starbucks money, Yeah,
and putting it into one specific account. So for those
that have their pens and papers out, we get the
three different boxes. You're saying about three hundred dollars a
month is what it takes for you to feel a
little bit more financially stable. Down the line, down the line. Yeah,
that seems manageable.
Speaker 2 (03:34):
Yeah, it really really is. I mean with this example,
with this system, if somebody passes away too soon, you
get five hundred thousand dollars for the family. That's our
paid life can go on as normal as possible. But
you know, if we all live our lives and we
make it to retirement age, we also become self insured
getting that five hundred thousand dollars at the end of
our thirty year period.
Speaker 1 (03:54):
Now, Aeril, just because I have ADHD and I'm like, okay,
well I need to know literally exactly to start where
would I start?
Speaker 2 (04:03):
Box one? Okay, box twenty that's going to be your
income protection. You want to make sure that you are protected,
your assets are protected, and that nothing's going to fall
through the cracks if something were to happen to you.
Speaker 3 (04:14):
Sure.
Speaker 1 (04:14):
Yeah, And you're saying that's a life insurance policy.
Speaker 2 (04:17):
That would be a life insurance policy, term insurance, Okay,
by term and invest the difference.
Speaker 1 (04:22):
Okay, three boxes there. Hopefully that was helpful, Katie. What
is a like a misconception about I don't want to?
I mean I would love just because I am a woman.
You know what's a misconception about women and money and like, oh, well,
it's like advice tips, something help.
Speaker 3 (04:42):
I mean we see it all the time. Women who
are married and say, hey, I don't need to worry
about this stuff because my husband's taking care of it,
or women who are single and saying, I just don't
have access to the information and so I'll worry about
it down the line. And the challenge with pushing it
down the line and down the line is it actually
takes a lot more money to invest if you wait
(05:05):
just five ten years versus right when you're getting out
of school you start putting a program in place. Takes
a lot less money to accumulate a lot more wealth
over time. So the more time you have that, the
better it is for you to manage that money and
invest it in a way that it's going to grow
long term.
Speaker 2 (05:25):
And it doesn't.
Speaker 3 (05:26):
It doesn't take a lot of money, Like we're talking
about one hundred bucks a week.
Speaker 1 (05:29):
Couple hundred bucks. I think it's really as somebody that
just started to really start. I mean that was my
twenty twenty four vision board was I want to like,
I want the financial and legal literacy glow up. So
I went on these deep dives on how to do
this stuff, and the information's there, but it's super overwhelming.
So for my single girlies who are like, yep, I
(05:49):
think that's me right now, where would you recommend them starting?
If Ariel was like, this is a three box for
the family, what about the solo gal swe do you thing?
Speaker 3 (05:57):
Get a roth iray, get a roth get a roth iray,
invest in it. Fully, max out the retirement if you
have retirement through the job.
Speaker 1 (06:04):
Yeah, that's what I have.
Speaker 3 (06:05):
Max that out up to the match if they're willing
to match. If they're not willing to match, it doesn't
make sense to invest in a four to one K.
If you're not maxing out a roth ira. You can
put up to seven thousand dollars in a WROTH each year.
That goes up by about five hundred dollars a year,
and you're putting that money in after taxes, and then
when you go to retire, you get all of that
(06:27):
money tax free.
Speaker 1 (06:28):
Right. The difference between a WROTH and your company's four
to one K has to do with the taxes on
when you get the distribution from it.
Speaker 3 (06:34):
Correct.
Speaker 1 (06:34):
Okay, Yeah, So for example, iHeart does not have a
roth IRA option, so I contribute to the matched percentage
here for the four to one K, but I don't
have a wroth. Would you recommend getting one?
Speaker 3 (06:46):
Absolutely absolutely, because you can do both, right, you can.
You're taking advantage of free money that they're giving you,
and you're taking advantage of the tax free withdrawals come retirement.
Speaker 1 (06:57):
I love financial information and so I kind of soak
it up. If your ears are like, yeah, I'm the same.
I know in between the eyes is right now, it's
going around and around. But I feel like I need
to up the education process on this. What's a good
way to reach out to you if they have for
the you know, you guys have for their.
Speaker 2 (07:13):
Questions, so you can either reach out to me or
Katie Fay directly on all of our socials Aerial Fields
and Katie Fay we have Instagram, Facebook, and then also emails,
text messages, all the things.
Speaker 1 (07:27):
Financial literacy is the glow up of not I guess
you know. Twenty twenty four is coming to an end,
but twenty twenty five. Thanks for coming to TIF in
the morning. I appreciate you.
Speaker 2 (07:35):
Thank you for having us.
Speaker 3 (07:36):
Thank you
Because you're waking up with in the morning, kis, let
us have in one bye, good morning, good morning. So
I've talked a little bit about cleaning my dad's house
out and getting the estate ready and just like all
the adulting things that have come across my life as
of recent and I've shared some of those things with you,
but one of them is financials and kind of where
(00:23):
to begin with them. So today I have Aerial Fields
and Katie Fay, who work for Primerica in the studio
this morning. Hi, good morning, goo.
Speaker 2 (00:31):
Good morning, good morning, and we're.
Speaker 1 (00:32):
Going to talk about wealth management, but not so much
the numbers, because I feel like if the math isn't
mathing for you, and you're like, I don't really know
what I'm doing, and I feel completely in the dark
about my finances and I know that I have that
supposed to have a bank account and a savings account
and a retirement account, but that's kind of all I know,
and like I kind of just you know, swipe it
(00:53):
under the rug until something changes.
Speaker 2 (00:55):
Right.
Speaker 1 (00:55):
Does that happen quite a bit all the time?
Speaker 2 (00:58):
Yeah? I feel like that was me.
Speaker 1 (00:59):
Up in un till recently. We're going to talk about
the box theory. Just three things that you need to
know on how to upgrade your wealth management. It feel
like a little bit better about it. Maybe you're not
completely you know, experienced in it. We're going to walk
you through it. Good morning, area, good morning, good morning.
Talk about the one thing that you see all the
(01:20):
time with families in the middle class with wealth. That's
just like, oh, I wish I had known this, what's
going on a lot.
Speaker 2 (01:27):
Of times, it's just simple changes. Uh, putting a plan
in place. It's going to make the biggest difference, is Okay,
what we do, what I recommend usually is going to
be using the three box system.
Speaker 1 (01:38):
Okay, talk about the three box Yeah, and it's like
not it's going to sound mathy, but just there's three
key things here to math.
Speaker 2 (01:44):
I promise, I promise. So in this example, you know,
we'll use a thirty year old family and I bet
you can agree most people can agree that we're all
wasting about one hundred bucks a week. Hello, Target, Yeah exactly,
it's Tarbucks, Starbucks, Target, Tarbuck, that is just put them together,
put them together. But you know, we're wasting about one
hundred bucks a week. And if we were to use
(02:04):
this system, the three boxes, it'll put things in place.
Our first box is going to be our income protection,
our life insurance. This is going to in this example,
we put about one hundred bucks a month towards a
plan that will put five hundred dollars in protection, five
hundred thousand dollars in protection on both the family for
the spouses, and ten thousand on the children. Okay, okay.
(02:26):
We always want to make sure that the family is
protected in the event that somebody does pass away. Worst
case scenario. You know, you can't replace a person, but
you can replace the income. Our second box is going
to be our short term savings, so one hundred bucks
a month towards this. Usually this is going to be
about three to six months of expenses saved up into
this box, okay. And our third box is going to
(02:47):
be our long term account or our freedom account, if
you will. This is going to be something like roth IRA,
and then we're going to be putting about two hundred
dollars a month into this box. And then once we
have that short term savings built up, we'll also roll
over that extra hundred dollars towards that, so overall, three
hundred dollars a month into your long term account. Historically,
you know, growing at nine percent. At the end of
(03:09):
a thirty year period, your roth IRA is going to
have five hundred and fifty seven thousand dollars built up.
Speaker 1 (03:14):
Wow, just from taking your Target and Starbucks money, Yeah,
and putting it into one specific account. So for those
that have their pens and papers out, we get the
three different boxes. You're saying about three hundred dollars a
month is what it takes for you to feel a
little bit more financially stable. Down the line, down the line. Yeah,
that seems manageable.
Speaker 2 (03:34):
Yeah, it really really is. I mean with this example,
with this system, if somebody passes away too soon, you
get five hundred thousand dollars for the family. That's our
paid life can go on as normal as possible. But
you know, if we all live our lives and we
make it to retirement age, we also become self insured
getting that five hundred thousand dollars at the end of
our thirty year period.
Speaker 1 (03:54):
Now, Aeril, just because I have ADHD and I'm like, okay,
well I need to know literally exactly to start where
would I start?
Speaker 2 (04:03):
Box one? Okay, box twenty that's going to be your
income protection. You want to make sure that you are protected,
your assets are protected, and that nothing's going to fall
through the cracks if something were to happen to you.
Speaker 3 (04:14):
Sure.
Speaker 1 (04:14):
Yeah, And you're saying that's a life insurance policy.
Speaker 2 (04:17):
That would be a life insurance policy, term insurance, Okay,
by term and invest the difference.
Speaker 1 (04:22):
Okay, three boxes there. Hopefully that was helpful, Katie. What
is a like a misconception about I don't want to?
I mean I would love just because I am a woman.
You know what's a misconception about women and money and like, oh, well,
it's like advice tips, something help.
Speaker 3 (04:42):
I mean we see it all the time. Women who
are married and say, hey, I don't need to worry
about this stuff because my husband's taking care of it,
or women who are single and saying, I just don't
have access to the information and so I'll worry about
it down the line. And the challenge with pushing it
down the line and down the line is it actually
takes a lot more money to invest if you wait
(05:05):
just five ten years versus right when you're getting out
of school you start putting a program in place. Takes
a lot less money to accumulate a lot more wealth
over time. So the more time you have that, the
better it is for you to manage that money and
invest it in a way that it's going to grow
long term.
Speaker 2 (05:25):
And it doesn't.
Speaker 3 (05:26):
It doesn't take a lot of money, Like we're talking
about one hundred bucks a week.
Speaker 1 (05:29):
Couple hundred bucks. I think it's really as somebody that
just started to really start. I mean that was my
twenty twenty four vision board was I want to like,
I want the financial and legal literacy glow up. So
I went on these deep dives on how to do
this stuff, and the information's there, but it's super overwhelming.
So for my single girlies who are like, yep, I
(05:49):
think that's me right now, where would you recommend them starting?
If Ariel was like, this is a three box for
the family, what about the solo gal swe do you thing?
Speaker 3 (05:57):
Get a roth iray, get a roth get a roth iray,
invest in it. Fully, max out the retirement if you
have retirement through the job.
Speaker 1 (06:04):
Yeah, that's what I have.
Speaker 3 (06:05):
Max that out up to the match if they're willing
to match. If they're not willing to match, it doesn't
make sense to invest in a four to one K.
If you're not maxing out a roth ira. You can
put up to seven thousand dollars in a WROTH each year.
That goes up by about five hundred dollars a year,
and you're putting that money in after taxes, and then
when you go to retire, you get all of that
(06:27):
money tax free.
Speaker 1 (06:28):
Right. The difference between a WROTH and your company's four
to one K has to do with the taxes on
when you get the distribution from it.
Speaker 3 (06:34):
Correct.
Speaker 1 (06:34):
Okay, Yeah, So for example, iHeart does not have a
roth IRA option, so I contribute to the matched percentage
here for the four to one K, but I don't
have a wroth. Would you recommend getting one?
Speaker 3 (06:46):
Absolutely absolutely, because you can do both, right, you can.
You're taking advantage of free money that they're giving you,
and you're taking advantage of the tax free withdrawals come retirement.
Speaker 1 (06:57):
I love financial information and so I kind of soak
it up. If your ears are like, yeah, I'm the same.
I know in between the eyes is right now, it's
going around and around. But I feel like I need
to up the education process on this. What's a good
way to reach out to you if they have for
the you know, you guys have for their.
Speaker 2 (07:13):
Questions, so you can either reach out to me or
Katie Fay directly on all of our socials Aerial Fields
and Katie Fay we have Instagram, Facebook, and then also emails,
text messages, all the things.
Speaker 1 (07:27):
Financial literacy is the glow up of not I guess
you know. Twenty twenty four is coming to an end,
but twenty twenty five. Thanks for coming to TIF in
the morning. I appreciate you.
Speaker 2 (07:35):
Thank you for having us.
Speaker 3 (07:36):
Thank you
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