Prayer Meeting - "God And You Money" P4 - November 3, 2021

Prayer Meeting - "God And You Money" P4 - November 3, 2021

everyone being on. Uh welcome to those that are joining us via Facebook. As sinister explanations being offered up by the attorney for the young armor on the film. Is it possible that a disgruntled crew member? I need everyone to mute themselves. Or to only contain lives. Thank you so kindly. We want to once again welcome everyone joining us via Facebook Live. To our financial evangelists for the past this is our fourth week Um that financial evangelist Jenny Jones is with us. And I can't believe he only has two more weeks with us. We only have two more weeks to go. This this has to be the fastest four weeks in the history of time.

And we've just enjoyed ourselves tremendously and we've enjoyed the information to make our people wiser in regards to that when the Bible declares that he has called us to be the head and not the tail that we have a responsibility being the head. That means that we are not people that make decisions based on emotions. Uh being the head means that we are rational. We make decisions based on information. Uh it means that we use all of our senses. We do not follow our tales. The tail is not wagon the dog. So, I thank god for the ability to be the head and not the tail and that the Bible declares that we are destroyed for a lack of knowledge. We're not destroyed because of a lack of faith but we are destroyed because of a lack of knowledge and I want to thank Jenny Jones for sharing the knowledge that god has given to him through his word and through his experiences.

So, at this time, I'm going to invite you to bow your heads for a word of prayer with me and then we will delay any longer. We will turn it over to our financial evangelist Jenny Jones. Our. father now god, we thank you for your manifold blessings. We thank you already for what our eyes have seen, our ears have heard, our hearts have felt, our minds have thought. We pray that your spirit would once again impart wisdom, knowledge, and understanding to your people. We thank you for the opportunity that we can do better. Because we know better. We are all these blessings in Jesus name. Amen. Nanny, it's all yours. No, you're on mute, Jenny. And before he comes on, I'm going to once again ask everyone to mute your device. Till it's time for question and answer.

Kindly mute your device. We can hear any background, noises, or background talk. So, Elder Garcia, you are the host and you I I am not able to mute anyone. So, please mute yourselves. Thank you so much. Hey, I appreciate you. Uh allow me to be able to present again for your church and these people you pastor over and that who God has put underneath your leadership. Uh we are week number four and you are right. It is moving pretty fast. Uh my wife is just saying, man, you're on week four already. Um so, tonight, I am going to as we move a little bit further down, I am going to ask a few questions, just one or two, just for check for reasoning and see if people are understanding where we're at.

Um So, let's go and get into it. Let's let's go in here. This is week four. As we talked about here, Let me see. Alright, so week four, retirement planning fundamentals. We've already gone through week one. Uh Biblical Foundations and what the Bible says about money And an introduction to financial stewardship. Um week two, we went into the introduction of Money financial instruments. We talked about money market, stocks, bonds, some of your basic instruments, savings accounts, things of that nature. Uh last last week, we went into investment fundamentals which is very exciting. You guys got pretty involved into that one but if I know of you got involved into that one, you you definitely going to take off here. This is probably going to hit a lot more people on this call and the more streaming than anyone else. Um So, this is retirement planning fundamentals. Um again, it still falls underneath the stewardship particular piece right there. So, Pastor, if you go into the mute, you can mute. I I just want to let you know we we can't hear when you move.

So, if you just wanted to. Yeah, my elder is actually the host and he needs to mute. I am not able to mute anyone. No, I'm talking about yourself. Oh, I was I was muted. I think that's my elderly Thomas. Oh, okay. Okay. Now, you're fine. I just want, can everybody still hear me? Cuz seem like I got cut off. We can hear you. Okay, I was going to say it. Elder, he muted me too. No, it's fine. I just want to make sure. Alright. So, stewardship. Um again, this is one of the elements the last couple of weeks we're talking about just managing the resources that god has placed you over and if you are untrustworthy about worldly wealth, who will trust you with the true riches of heaven, Luke sixteen and eleven and I think we had already kind of broke that down a little. We talked about wealth. We talked about the attitude of wealth and or money. Um but we talked about the stewardship piece, knowing, understanding, being knowledgeable of the necessary resources that are out there and available to you to be able to make intelligent, wise decisions and again, being the head and not the tail and all your decision making and all your understanding.

Uh I mean, in all your knowledge, getting, getting a good understanding is very important. Uh and all your education. Um we talked about a balanced stewardship, having a balance of you know, first Timothy three one through five eight through nine. Timothy is a book obviously. When they talk about leadership and creating elders throughout the church and talking about just good stewardship, good management of the resources that God has placed you over. This was a good fundamental start that that I teach to all the kids.

I teach all the teens and I teach all the adults and I try to govern my own finances, being a leader, being a leadership at my church. Um I try to govern my finances. Um making sure I'm making all the pieces move and do the work the things that they need to work. 10% donation 10% investing 10 percent savings 7070 percent spending, right? Operating my household, trying to make sure that the lights stay on and those types of things. Um and so I have the the particular scriptures there available for you. But let's get into retirement planning fundamentals. Wanted to just give you a prelude there. Um this particular session of this week is being sponsored by my retirement exit.

Um my retirement exit is a can now see your screen. Okay. So, my retirement exit is a that is a company that everybody's good? I think a Philly needs to mute themselves. So, retirement planning fundamentals, retirement exit is a company that I run being an advisor, I run a different element that only covers retirement. In this particular, we, since I've been using a lot of the fundamental things that I I teach in some of the classes that I instruct. I just wanted to let you know that my retirement exit is one of the companies that I do actually run and I think that was even in my bio when he talked about it. Okay. So, let's go and break into this, right? So, want to make sure we're good here on time. Um Let me just give you these. I want to break it out. I want to start out with these two core elements. These two pieces here. define benefit plans and I want to talk about defined contribution plans, right? And I want to give you a high level. Again, these are fundamentals but it's just so that you would understand when you see them, you'll be able to identify them in your own retirement on your retirement journey.

Define Benefit Plan is them and to find contribution plan is you and when I say them, the defined benefit plan, the benefit is defined for you when you the the benefit is defined for you when you actually start. Right? So, when you actually start with a company, let's say, you, you know, and these used to be very prevalent way back in the 50s and 60s and the industrial age is when you could go and work for, you know, are we good on that or Is that a is that a something that's chiming or? Uh there you have individuals coming on. Oh, okay. I didn't know what that was. I was like, what's going? Is my time up or something? Alright. No, no. No, I'd never, I had never paid attention to that but okay, sorry. So, listen. Let me get back on point. So, Define Benefit Pam, you know, back in the 30s, 40s, 50s, industrial age, the defined benefit plans were very prevalent, right? The factory workers, people working on the assembly lines for general motors and so on and so forth it's when your benefits were defined for it.

Where's your volume? I don't know. It's when your benefits were defined for you. And so when your benefits were defined for you. Mister Butler or. I'm trying to mute. Oh. I'm trying to mute them. Yeah. Help me out. Doc is tore me up a little bit. You alright? Alright. So, it's when your benefits were defined for you. So, when you started working for an actual company, they would say, listen, if you work here 20 years, we're going to give you, you know, three percent, four percent of your annual salary, you know, over your lifetime or something like that.

That's when you showed up day one, your actual benefit was defined for you. They already told you. Work here, 20 years, you get a gold watch two percent. Work here 25 years, you get a gold watch and a gold pin and you get 3% or something like that. So, you're benefit is defined for you. So, that's a defined benefit plan, right? And that's them. Meaning, they define it for you when you show up and then, the second component is normally retirement falls into one of these two categories or may fall in and you may get a combination of both. So, the second one is define contribution plan is when you define the contribution, right? And you may start working for someone that says, hey, you need to contribute to your 401K and then, they say, how much can I contribute? They say, hey, you can contribute how muchever you want.

You know, there's a limit, an IRS limit but you can contribute as much as you want. You define the contribution towards your retirement and so, when a lot of the defined benefit plans went away, the define contributions, plans, started to pick up and they became more popular. And so a defined contribution plan really more than likely works off actually most of them work off IRS codes, right? So, the person says, what is a 401 (k)? Well, if you look at IRS code 401 paragraph K, it'll actually explain to you what a define contribution plan and what the parameters are for a 4 oh 1 K.

All of em full three B is IRS code 403 paragraph B, right? And that's for teachers and nonprofits, right? And they're telling you how they're structured and really the define contribution plan came about is really an IRS code that people use to defer compensation And and that's kind of the history of that and you will find probably less than 5 percent of companies use still use to find benefit plans, that's a whole another subject and a reason why. Um most of them, 95% of them will have a defined contribution plan. You, if you belong to a company that's been around for some time, they will have a calm, a combination, or a hybrid of both or or they may have a little bit of one and then a little bit of the other as well and so, at the bottom, I just put some key, some key factors for you for defined benefit plan.

Uh there really no longer around. You can't really find those. They're really hard to find even if you went to work for an older company like a Boeing or something like that, they they may not even have you as a new employee, man. I didn't be eligible for the whole defined benefit defined benefit plan. They may just, you only may be only eligible for a defined contribution plan and this is just an example of some of the older companies that may have it and number two for them is it maybe in a form of some type of an annuity, right? And an annuity in its simplest form and so that you'd understand because that is you will hear that term a lot when it comes to retirement.

An annuity is it is a it is a insurance instrument and or product that will pay you as long as you walk in this Earth. Right? And it's it's it has a it's built it it's built and based off of the mortality table of your life expectancy. That's a little bit more than what I wanted to get into. But that's kind of what a defined benefit plan is and you sometimes you have to make it a decision.

Do you want a lump sum? Or do you payment structured to you. So, that is when you start hearing those terms and those words, you know you're in some type of defined benefit plan where an annuity may be generated. They may say, hey, have you retired? We're going to create an annuity and we'll pay you, I don't know, 2000 bucks a month or $1, 500 a month for the rest of your life as long as you walk this Earth.

That means that you are in an annuity, right? And and the define distribution plan. Uh it's most likely around. You're going to find every company, every newer company, or most every company, at least 90% of them if they have a retirement plan available, it's going to be some type of defined contribution plan. 100% of that is on you. If you screw it up, you take the money out or you do some things privilege to it that they allow you to do within your own parameters. You take money out, borrow against it, and all. That's 100% on you. The company removes themselves of the liability of that. Um and a lot of them will give you a component or have a selection of pretax contributions or aftertax contributions. Right? So and again, last week, we talked, we went over the Sterling for the last two weeks.

We went over the investment pyramid, right? We talked about having cash is our fundamental. We know we have when we have cash. It's only when we try to make money off of cash is when we try to look at it, trying to get some type of income, some type of savings, some type of CD, some type of bond, or something like that and then, it's it's when we want to try to at least beat inflation is when we move into our own, into the own category because you're loaning money down here and the income side, if I loan you, if I loan the bank $10, 000 for a CD, they're going to in exchange for interest, then, I've loaned my money to the bank but if I want to buy the banks, if I want to buy the bank's stock, then, I have to own the stock.

I would make more money buying Bank of America stock than Bank of America would pay me for putting their money in the bank. Let me repeat that. I would make more money owning the stock of Bank of America stock or having mutual fund with Bank of America in it, then, Bank of America would pay me for me putting my money in the bank, right? And so, but at that that at that instance, I'm owning, right? I own the bank and so, those categories, the growth and income, the growth and aggressive growth. So, we kind of talked about that a little bit. Um for the last two weeks And so, what's important and what you need to know, I've dropped the slide back in here.

I've put it in here for a couple of different reasons why because when it comes to retirement, you are going to fill your your full 1K or your retirement assets are going to feel like an accordion. They're going to shrink. They're going to expand. They're going to shrink. They're going to expand. And the reason why is because every five to seven years the economy grows and economy shrinks. We call it contracts, right? And or it expands, right? Companies growing. I mean, the country's growing. People are hiring, right? Or the company's our country is laying off and people are restructuring their businesses and that's because the federal chairman controls the growth of that and the reason why they control the growth, the expansion, and the contraction is because of inflationary prices and our pressure.

And the brief explanation of inflation is they can't have and I'm going to take you to an inflationary period of where this will always make sense to you. If you ever want to figure out the reason why one more go what what goes up must come down. Is when you go back to ninety I can't two thousand seven. I want to say is when we have the housing boom. I was saying between two thousand seven, two thousand nine I can't remember where it lasted. I'm long time but it was either 2005, 2006, somewhere up in the air the con, the economy was expanding so fast, but it had to slow itself down and that's when you start seeing all the collapses of the banks, Washington Mutual, right? Um if you even go back and think about some of those companies, Bank of America, absorb, swab, and some other different things.

It's because there was a lot of debt out there. The reason why it was so much debt out there is because people are using all the money to borrow on bad luck loans and things like that. That that's because the country was growing. But it had to correct itself. And when it corrected itself it took a lot of casualties with it. Um and that was one of the things that happened because they wanted the the economy started to contract. Here's the reason why and here's the reason why you need to understand that is because inflation was so prevalent. Meaning that if they would have told you a gallon of milk was 20 or a loaf of bread was $5, You would have paid it. Right? And that's that's the theory that's little it's a little extreme but that is a theory behind that. That's inflation because prices continue to go up. That means there's more money to pay for that. So there was so much money back in the housing boom.

That if someone had told you hey a gallon of milk is twenty dollars you would have paid it. Cuz you woulda had it. Cuz you had so much access to cash. Uh because of the refis and people cashing out and all that. So everybody had money, right? You, I would go by my friend house. He had a hummmer, then he had a baby hummer for his teenage daughter, right? Everybody had money back then. Uh, and that's what happened. So, the economy had to correct itself. So, that fundamentally, that happens, and it's been happening for over 100 years. The economy grows and it's contracts. But you, what, if you're fundamentally put your plans and stuff together that you don't have to worry about that.

Imma give you a little, Imma give you a little something here that it doesn't matter what the economy does. I'm still going to be able to make a little bit of money at the same time and I'm going to show you that a little bit later here. And I I this is this is this is where I explain to you kind of what happened. And this this is there's always going to be booms and there's going to be bus. Right? Uh the great depression was in 1932 to 1937. Right? Uh it was called a great impression. The the great depression because all the stock market failed 80 86 percent, right? And that particular time a lot went on. That was a contractionary period, right? I mean, so no, the Great Depression was the recovery from that. That's when it gained over 3 hundred and 25 percent from the Great Depression lasted from 1932 to 1937. between those periods, 1929 to to nineteen thirty-two recovery was led with a 325% gain over the next five years.

So, it actually, it burst it, right? Economy grew. but then, there was a post-war boom, right? You had in nineteen forty-nine to 1956, the economy grew after the war ended the United States and Jordan era of prosperity driven mostly by consumerism. We talked about at already. I think maybe week two when we talked about the economy goes as we consume. That's why we got all these checks that we had all these stimulus checks because they were trying to grow the economy. They were trying to stimulate it. They were trying to jump start it. Right? And and so that's we had the boom. So the Great Depression was bad. The boom was good. And then you had the housing boom. Right? That's when it was. 2002 to 2007. That was the period we was talking about was led by Subrime Mortgages. Everybody had I'm going to repeat that. Everybody had money. Go back to that time. Everybody had money. Um and that's why they had to slow the economy down. Because again the cost of goods and services was so much that people said hey if you want to pay $20 for a loaf of bread.

I got it because I have the money. It's not a big deal. Well that's not her true reflection of the overall economy. So, they had to slow it down. And when they slow the economy down they cut back on lending, right? And so, it's harder to get loans. It's harder to get money extended to you. Um because the Federal Reserve actually puts those requirements in place and they tell the bank, hey, cut back on your lending, they give them measurements. Hey, no loan no more than 10%, no loan more than 15% So they control the money flow. Right? And just back now from two thousand nine to 2019 was the another boom. So, after we had the bus, you know, seven, we had another boom in oh nine and it lasted 10 years and it was game It gained over 334percent.

Um the S and P markets All 13 boobs on record has had a bust. But when history when will history repeat itself again? The reason why there's a boom in a bus because there's a contraction and an expansion. Right? It's just fundamentally that's how it works. That's our economies put together. And because our economy is driven by us as individuals, workers, consumers, we drive the economy.

If we're not buying, we're not shopping. We're not spending, The economy is not growing. We don't have money in our pocket. So we kind of kind of got that one. Got lot out of that one. Wanted to explain to you guys what was going on in that. I just wanted to give you the difference to but how's that related to retirement? And what does that mean for you? First of all, you have to know what kind of economy you're trying to retire in, right? And that's why and I, I think I I put that in my book.

Uh I have a book on Amazon and I put that in my book that you need to at least know your five-year window. You need to start making your adjustments and preparing yourself for your descent is what I call it. Your descent into retirement And so there's adjustments. There's things you need to be looking at. What's going on with the economy? And stuff like that. And that's where you can make your adjustments and make them accordingly. And again I just wanted to give that to you again. That's very eerie that you see the contraction and an expansion. But you see the booms in the bus. Right? They're going to go hand in hand. They've been doing that for over 100 years.

That's just the kind of the way they work. Right? And you have to be prepared for that. But I'm going to give you a little something. A little bit later. You're going to be able to see this. It's going to make a lot more sense to you. And this is one of the things that will make more sense to you as we kind of get to the slide. I crossed out aggressive growth, right? Um I crossed out growth. I crossed out income. I crossed out cash. The reason why is because growth and income gives you the best balance between a contractions and expansions. Why? Because if the economy is growing, I want to get that growth. I want to participate in that, right? I want my money to participate in that growth because I can miss out on that growth but if the economy is contracting, I'm still going to get income if I have the right investment the right place at the right time.

I'm still going to get income because my mutual fund or whatever investment I selected is going to give me growth If the economy does well, it's going to give me income regardless of what the economy does. So, to me, I call that my sweet spot. Anytime I'm coaching or or sharing with my clients, I always say, hey, we want to be right here. We're not trying to get on, get a homer, and I think I shared last last week is, we're not trying to get a home, we're just trying to get on base. We want to get on base consistently. You can win a game or you can just add, you can ask Atlanta Braves. You can win a game by consistently getting on base. If I get on base, it doesn't matter. If I get a a single, it doesn't matter. I'm not trying to hit it out all the time as long as I get on base. If you get into growth and income category, you're going to get on base every time and what I do is when I'm preparing and putting portfolios together for my retirement clients is, we're going to live here.

We're going to live in a growth and income space because we're not going to go broke but we're not going to we're not going to be rich either but we're going to have an opportunity to be able to participate and not do the whole up and down. We're going to be able to still be able to survive of whatever the economy may bring our way and I'll put this in here and I'll drop this in here for free, right? Um my pastor always said, hey, Imma give you this one. Imma give you this for free. Um And I I think I said this last week and I don't know how to say this without hurting anyone's feelings. Pastor like, what is he about to say? Let me preference it, right? Companies, public companies, your AT and Ts, your targets, your Walmarts, your Heeler Packers, your Oracles, your your Amazons.

They will lay people off To pay a dividend to their to their shareholders. To the stock I didn't offend anybody, did I pastor? No, sir. That's that's real talk. I'm I'm just being because being in this business 21, 22 years, I've seen it. Where a companies that come out and I used to work for AT and T a long time ago and I used to do some technical stuff for them. They laid us all out. But they still paid their shareholders the dividend that was due to them. And when I say dividend, that's a return of profits to shareholders. That's what a dividend is.

If you live in growth and income space here, you're going to own a lot of companies that pay dividends, right? Are they give dividends are not guaranteed but they try the best to return dividends to their shareholders and so what I mean by that is, when economy starts to contract, they're laying people off to try to make sure that they're still profitable. That's what companies do. So, how many had a layoff? Why they land off all these people? To remain profitable.

Cuz businesses are in business to be profitable. Why they're being profitable? To return dividends to their shareholders and so, if you live in the growth and income area, you'll always be able to get some kind of check coming in regardless of what the economy is doing, right? And Imma have a little exercise here. Imma make you guys think a little bit, hear a little bit later. We're doing good on time. So, again, this is stock, right? This is Exxon Corporation. It's it's a older stocks and stock certificate. That's an equity, right? We talked about it. It is an equity or ownership in a company, right Let's talk about the retirement suitcase, right? And I explained to my clients something I came up with, you know, just teaching grad school and a couple other areas about mutual funds and you know, I've been all these different places to speak about them.

I had to make it easy so people can get in there and understand it. You guys should know by now. I do a lot of analogies but this is one that I love to do and I love to teach. What sits behind 85 to 95% of all retirement accounts are a mutual us, right? And I think I talked about it last week. Mutual funds are things that we own collectively together. right? Everybody on this phone, everybody on this call can be part of our mutual fund. Because it's mutually, we all, we all mutually got together and today, you put in 10, I'll put in five, you put in 15 but we all own this one suitcase because we all own it, we're able to get it at a reduced cost, because we all own it, we're able to have a shared risk, right? If owned one company, right? Then, I'm a live and die with that one company but if I own a suitcase and normally this suitcases, I call em suitcases.

They're mutual funds but I call em suitcases. So, we just call it retirement suitcases, right? And inside of a suitcase, right? Our stocks. individual stocks for about 200 companies. So, inside of one mutual fund, one suitcase, one retirement suitcase, inside your 401 Ks, they have different suitcases. Right? And it's beyond the score, I don't teach you the fundamental pieces. Um and the fundamental pieces I want to stay on the surface. But each suitcase is going to have about two hundred companies in it. At least. Right? Anywhere between a hundred, a hundred and fifty, 200200 companies in it. And these are just some of the companies that I decided to put in here because these are public companies. Anyone on this call can own anyone of these companies. Anybody can own McDonald's, Apple, Walmart, Amazon, Facebook, Meta, or whatever they are this week. Costco, Bank of America, Netflix, Procner, Gamble, Carnival Cruises.

Anyone on this phone call. Anyone on this this session can own an individual stock in any one of these companies. The power of a mutual fund or the power of what sits behind your 401 (k) is simple. Um You can all own, you can, everyone can own all of those stocks. There's some stocks. There's some stocks that own, that have all of these companies in it.

Every last one I just named. I mean, every, there's some mutual funds that I've, every single stock that I mentioned here, right? And all of them can sit inside of a suitcase. Now, the suitcase, they're not all created equal. They are inexpensive to own, right? And they are less risky and they are called mutual funds. That's what they are. So, when you up your 401K at a at a retirement if you have a defined benefits plan there are there are There are investment managers that's managing the entire portfolio on the back end and you don't see them and they're investing into an annuity and then you just annuitize it. It's beyond the scope but I just want to let you know on the back end, at the very back end, it's going to be some type of mutual fund, something that gives you less risk, that's inexpensive to own, right? And it gives you more diversity, okay? Now, they're not all created equal and what I mean by they're not all created equal, I want to try to stay on the surface here.

Um you have small, medium, and large ones, right? You have some that are domestic only, right? Only USA. You have some that are international only, right? Um you have some that say, hey, we only do Asia and Europe investments. That's all we do, right? You have some that say, hey, we only do small companies. We only do companies with the size of, you know, no more than 500 employees or whatever, right? And then there's some Hey, we we only do sovereign funds. We don't do smoking, tobacco, we don't do a lot of those types of things. We stay off of that grid. We stay out of those companies. We only do conservative types of companies and stuff like that. You're going to always find a suitcase. You gotta find the right suitcase that works for you, right? And that's what I say. They could be small, medium, large, they could be international, they could be domestic, they could be medium sized, and whatever you find in that suitcase, again, it's going to be about a hundreds to 2 00 different stocks are individual companies that you're going to own, right? When we go back to own, right? you're above the line.

So, if I own em, it's going to give me an opportunity to be able to be inflation, right? There are some stocks, I think, I want to say Bank of America, I don't have it right in front of me but they pay a dividend They pay a dividend of I think, 3% on annual basis or whatever. You can own, you can own Bank of America's stock by itself. Beat inflation and have an opportunity for growth, right growth meaning that you bought it for $5, dollars, it went to 10 dollars, you doubled your money, right? And so, I just wanted to go back there because once you move to the own side, that is the only thing that gives you that ability or you can only play in the own space for an opportunity to beat inflation.

moving back that are, they're not all created because of the contents within the suitcase. Now, these are old stock prices but I wanted to give you a flavor of what they are. So, right now, if you wanted to own one share of Amazon, I think it's closer to 2000 now. This is a older slide This uses numbers for real case scenarios. Um I know McDonald's is more than a hundred and eighty-eight a share now. But Amazon.com, if you wanted to own one share of Amazon.com, you would have to come up with one thousand six hundred ninety for one share. Not only would you have to come up with one thousand six hundred 690, you had to live and die with Amazon.

So, if Amazon had a bad day, they came up and they say, hey, Jeff Bezo, he went to the moon and he didn't come back, right? People get freaked out about that, he said, oh no, Jeff Bezos not coming back. I'm going to start selling all my shares because I don't know what Amazon's going to do. Well, you bought that one share for one thousand six hundred ninety dollars. You wake up the next morning, it's fifteen hundred dollars. You've lost it, right? You've you're now you're below and we talked about the three things, guaranteed, you know when you're going to get your money back and you know the interest rate. We talked about that last week. Um so, when you own individual stocks, you don't know any of those. You're not guaranteed to make any money. You don't, you're not guaranteed to make a rate and you don't know when your is coming back to you.

And so I'm giving you each individual's stock price. Right? Chevron one 18. I think Apple's closer to two hundred now. I think it's maybe 200 220 something like that. There all of these stocks are a little bit higher than what they are resembled here. But I'm just giving you an idea. And I'm giving you the numbers for a reason. To buy each one of these stocks. That's the cost. To buy one share of Netflix will cost you $286. right? But I can own the entire suitcase for 4-3 dollars. right? And this is normal when people say, oh, okay. That makes sense. That makes sense, right? So, I own all of those stocks for forty-three dollars, right? I can pay for individual stocks, right? But if I bought carnival cruises by itself and we already know what's going on with cruises, they may not have a good year this year.

So, I bought it for $60. I wake up in six months. It's down to $40. I've lost on that individual stock. but if I own it, it's a part of the suitcase. Carnival Cruz may had a bad year but McDonald's had a good year, right? you know, Bank of America had a bad year but Chase had a good year, right? Or so on and so forth.

We get the picture and and so, when I own them all together in one suitcase, 200, 200 different stocks and pay 43 bucks, right? That's the power of the suitcase, the mutual fund, the best suitcase to have, and I wish I you guys could unmute is the best suitcase to have is growth and income. One that pays you dividends and one that gives you growth as well. Okay? So, I'm just going to Imma read this out loud. Imma just open it up. Imma pick one or two answers as we move forward. We're doing very good on time. So, I just want to give this to you. Just want to read it out to you. Most of you guys can see it on the screen but it says, Sam Smith received a call from his friend, David, the other day. This is just a case study to kind of get you thinking to see what what happens, what actually happens in the workplace because the conference friend David the other day about a good company stock opportunity.

He said that it is guaranteed rate of return of twelve percent for the next four years and that he that he should invest in it today to get in on the ground floor. So, this is what he taught, this is what David told Sam Smith, man, you need to get in. It's on the ground floor. You gotta get in, man. They're guaranteeing twelve percent. He said that he was certain that that he was guaranteed at least 9% in his mutual fund in his in his company for a one K. This is what, this is what he said. He says, but I need at least twelve percent. Did he remember his financial adviser telling him only three weeks earlier that if he could earn 12 percent over the next three years, he could retire. Now, He's fifty-seven. He has a hundred and fifty thousand in his 401K.

His wife has two hundred K, 200000 and her 403 B nonprofit or she's a teacher. And they think and they and think that they both should do it because she wants to retire in three years as well. Uh should Sam move his money over to the new investment? Uh what would you do? So, Imma just, Imma take one or two answers and then we'll expound that and we'll go from there.

So, anybody can unmute. Or a lot of them. Nothing is guaranteed. We keep saying that over and over. On board. Not doing it. You for not doing it? Anybody? Sounds good. It sounds good. It sounds very good. Thank you. I I knew. I'm glad you participated because you always been with me. So, I appreciate that. Um does anybody think we should do it? Anybody want to take take the the the the contrarian position on this or go against Miss Richardson, the baseball player? What's, what's the, what's the aspect if what's the risk factor? That that that's what's not here. Like if he does it, if he goes with the 12% what's the risk factor? So, you want to explain? You want to tell him Miss Richardson or because he wasn't here last week. So, we going to give him a pass on that.

Yeah, you lose. I mean, the potential of losing and you're at a retirement age, I mean, I I don't like to lose in in this respect. So, I think that. So, are we talking about you, Miss Richardson? Are we talking about what should Sam Smith do? Sam Smith is a retirement age. The risk is too great to put all of his eggs in one basket because his buddy is saying it's a guarantee. Nothing is guaranteed. Life is not guaranteed. This is true. Why would I do that at a retirement age? But that's just me. I mean, I, you know. Yeah, let me be the devil's advocate. Okay. The devil's for me Let me do the doubles advocate here. Listen to pray for me. But you go on no no I you know I make decisions based on the risk involved. Not the reward. rewards look good but I want to know what the risks are.

So, when I'm reading this given, he's he's a good companies, a good stock opportunity. Uh I guess, I guess what I'm thinking is that do I have to invest all of my money in this stock or can I, can I pull some of my money out and put some in this stock to see how does. So and we're going to move forward and I appreciate it. One of the things. go ahead. One of the things that you said to beware of is if someone said they can guarantee it.

Uh oh. Exactly. Uh oh. Exactly. That's what I'm talking about. Thank you. Brother Wesley. Thank you. Thank you. Thank you. Because that's what I was going to give to Pastor. We going to give you a pass Pastor because you wasn't. Oh no no. I was just making sure members could articulate the reason. Okay. I appreciate that. I appreciate. No, I I really do appreciate that. Thank you for doing that. But you were standing so firm. I was like, man, he really actually believe in this but Oh, no, no, no, no, no. No, you're you're good and and and thank you thank you to sister Richardson and brother with for bringing that up because the flag in here was he said that it guaranteed a rate of return of twelve percent. Exactly. You cannot guarantee a rate of 12%. Nowhere. Because if you do, now you're owning. And if you own, there's risk always. There's no guarantees in owning. Okay? And so when we go back to that man, I wish I could, let me see if I can, let me go back to that slide.

I gotta go back because pastor wasn't here. I gotta give you that. I gotta give you that. Where's he at? Where is that? See, it moved. My slide moved. No. It's risk and reward. We talked about that. Uh here it is right here. This is the slide. This is the one, isn't it? Sister Richardson, this is the one. That's it. This is the one. When you, if you stay and you weren't here last week, Pastor, so so we we but we know you was trying to help us out on the No, I I I yeah, I was here.

You good. Okay. Alright. So, again, below, when you loan your money out, there's going to guarantee is going to be a time frame and it's going to be a percentage, right? It's when you go above and you own, there is no guarantee. There is no time frame, there is no percentage. Soon as you to put his money in there, the next day it could've dropped. He like, man, I was going to retire three years.

because I lost because he couldn't have. Now, I can't retire for another six years. And so that, that was more of a thinking exercise to kind of say, you know, looks good, smells good, but it ain't good, right? And that's what I wanted to give you guys. That's the that was the purpose of that exercise. Nothing more than, you know, I wasn't trying to mess with nobody heads on a Wednesday night, but I wanted to try to give you something to think about, food for thought, okay? So, here's another one, right? Here's another one. Um full of exercises tonight. We're almost done. Um, if Sam had $1$, 000 and wanted to buy a mutual fund for his 401K, which one should he buy and how much would he pay These are mutual funds.

So, once a growth and income mutual fund, one is a growth income. Grow a growth fund. I'm just, I'm just throwing that out there. We can have anybody help us move this along. growth and income. So, you say growth and income. Why? Why do you say growth and income? Well, because I told you because you have two options. If the, if the, if the market's doing well, you're going to get the growth and and then if it's not, you're going to get, you'll get the income. If it slows down. And and the prices almost the same. You know what? Pastor, my work is done here. Yes, sir. I'm done. I'm done. No, I'm I'm messing around but yes, you are, you are correct, right? But what if this happens? Right? Arrow indicates the price after COVID-19 Yours dropped to forty-four.

Your growth and income stock, I mean, mutual fund dropped to forty-four and the other one dropped at 52. Now, which was the better investment. Imma go back to Brother Wesley. But in on, I was still get, if that's income I will still get the dividends from those companies. And there's no dividends coming from from the growth. I totally agree with him. Pastor, these people are sharp. What are you doing over there at that church? No, and that's and that's in your in your spot on and I, these are just exercises. I just wanted to kind of get you guys to thinking because I did kind of hammer on growth and income a lot but let me tell you even what's more powerful, brother Wesley, that you you probably didn't miss but you would eventually see if you did it.

If the stock, if the, if the mutual fund dropped to forty-four dollars, well, I told you the average price is sixty-six dollars. I'm telling you here in this illustration. Hey, listen. Average price is $66 of this mutual fund. It dropped to 44. That tells me that this mutual fund is on sale. and mama always likes sales. My mama and my wife. So they it is it dropped to $44. That means that my dividend checks when they come in and my growth and income.

When the dividend checks show up in my account is automatically reinvest. So that's where the compounding interest comes in. We're going to get into that a little bit next week. But now my dividend checks when they're coming in. They're buying the mutual fund at $44 dollars when the actual price is at sixty-six dollars. Mm You see power net. Yeah, you get more shares. And what did we say? It's going to be an expansion. It's going to be a contraction. So when it comes back, so when when I bought the share at forty-four and it comes back to $66, who you think looking good now? you're looking good because you bought it on sale.

And fool, you bought a stock that averages sixty-six dollars. You bought it for $44. This is when people run. When people in their 401Ks, they see them doing all this stuff because you guys have the power to log in and you see your 401 (k) stop panicking, right? You have 200 companies, all 200 companies would have to all fail at the same time on the same day for you to really truly lose money. If that happens, we got bigger problems. That's so true Right? I wish I knew this so many years ago. I went down. I I'm telling you I would get out. Because I'm like I I don't want to lose money. Forgive this. I got out. And but you're absolutely right. We have to hold on. What West said a minute ago I still have income though. And we have to look at it like that. That's correct. So that's correct. You know it may be low but I still have income coming in. I still have a dividend check. In my grove I have no dividend check. Well, and Sister Richardson, one of the reasons I said what I said, it was really not because I believed it.

It was but to to tackle the attitude of fear that many times we have. Mm hmm. Yeah. And when it when it comes to this issue, many times, I think you just said, we don't hold on. Yeah. Because we're operating on fear. Exactly. Exactly. And I I I'm telling you that what I did when I was younger and you know, it's just unfortunate but you know, you know now and you keep going from based on what you know.

Every time you learn something. I don't I don't want to take his time but religion, religion, and churches almost facilitate fear in people. Unfortunately. unfortunately. Yeah. Yeah, I can see that. Yeah. Uh so, pastor, I mean, this is really I want to do this case study. I'm, I think I'm, I think I'm done. I I have a what I did is I threw this in here and I want to wrap it up for questions.

This is something that I created this part of my company, My Retirement Exit. I created free trial, Retirement Chat.com. So, I created a company called Retirement Chat for people to make these different decisions that they may run into, right? On a a daily basis. people that call me and says, listen, I got 48 hours to figure out if I want to take a lump sum or I want to take payments. So, I already know that, okay, do you have this? Well, no, I don't have that. Do you have that? No, I don't have that. Hadn't thought about that, right? I said, well, I don't I don't know if you need to be trying to what do you want to do? Well, I want to take a lump sum.

Do you have this? I don't know. And so, this is one of those things. I created this company to do that. So, my my retirement exit, we have a lot of solutions for people to to kind of help to make these retirement decisions and this is one of the things that I created. So, people we can hop the phone real quick or we can do a a voice or a text or something like that and I created this company and they I was featured on ABC about this because people were panicking when the pandemic happened. I'm like, hey, stay easy. Stay the course, right? And you have to sometimes you have to and but a lot of that comes from education, pastor and I appreciate you putting this on for your congregation because a lot of times we don't know what you don't know.

Now, if nothing else fundamentally, Wesley has it and the rest of the people, Wesley's like, wait a minute, I'm thinking of that logically. I would still be making money, right? Exactly. And so and so that's really, I mean, pastor, that's really, I, I wanted to, I wanted to leave the, the next five to six, seven minutes or so, open for questions and open for discussion because I know this is a heavy topic no matter where I go, this is always one of those topics that that seems to, to garner the most questions.

So, I guess the elder can open it up for questions or if anybody had questions or is there anything in the chat that I need to look at or are there any questions first and foremost? For this evening? I have a comment, Jenny I. just appreciate the suitcase analogy. I mean, like, you know, last week, I appreciated your your baseball analogy. Now, I appreciate this suitcase analogy because when you look at it like that, I mean, it it really helps and so thank you.

I just wanted to say that. No, and I I I appreciate that. Thank you. I I had to find a way to make it easier because I teach this to teens too. I teach this so that they would get it. So, I had to break it down to that level. One other thing about the suitcases is, if you're not getting tripping, I'm going to throw this in here. My pastor always say, Imma throw this in here for free. You don't have to have a lot of suitcases in your 401K especially if you're not contributing that much. So, if you're doing anything less than a 000 a month into your one K. You don't need two or three suki. You really only need one suitcase because the one suitcase has two hundred.

Exactly Stocks in it. If you buy a couple of different suitcases, they start to overlap. I got AT and T in this one but I got AT and T in this one as well. Thank you. I got Verizon in this one. I got Verizon in this one as well. Mm hmm. So, a good balance or good mix would probably be maybe an international suitcase and maybe a domestic suitcase. Exactly you don't need, if you need, if you need it too, I would just, if I wouldn't, if I'm not doing that much, I'll probably just get one suitcase and just ride it. I'm sorry, somebody had a question. Yeah, I, you know, some years ago, I had a mutual fund. Mm hmm. Uh it was, it was American Funds Group. Oh, American Funds, yes. American Capital or something like that? Ooh, I love that. It it was really a good thing. Mm hmm.

And it took off but long story short, I had a friend who went to work for company and she needed some clients. She needed some clients. Yeah. So, I let her take this over there but I told her, look, you can't trade anything. You can't sell anything. Don't listen. So, she so she ends up quitting. Oh. So, the guy she worked for end up taking, you know, over her clientele. Mm hmm. And he put me in stocks and it was doing that time, you know 2009, like you said, the stock market, you know. I told you, I told well. The booms and bus. But now I'm thinking I'm already retired. I'm thinking I probably should get out. And going to go back into a mutual fund. I I mean I don't I don't know.

I don't know your situation. I don't I mean I'm not going to be able to answer that but yeah, I mean, when you told me, that fun you were in, that fund was a firecracker. I would have never let that thing go. Cuz I I'm very familiar with American funds and definitely familiar with that particular fund. I I think I, I think I own, I actually think I own that one and that fund is is just been, it's just been killing. So, hey, I'm not trying to compound and make it work for you. I'm just saying. That was a very, very good and that's normally what happens is people go to their friend and help their friend out or whatever. Next thing you know, they, your stuff's messed up. You're like, man, this is my portfolio. This is my retirement and so, there you go. Yeah. Yeah. Any individual stocks, let me make this one point, Pastor. I I appreciate it. Being an individual stocks, you can get hurt really, really bad going into retirement. Just writing a whole bunch of individual stock because Tesla stock dropped 40 billion in value yesterday, in one day individual, right? But if I own it in my mutual fund, it won't hurt as bad.

It's like, man, I, somebody threw me a life wrap. I was good. I didn't go under. Does that make sense? So, I just want to I'm always, I'm always with the analogics. I'm sorry, pastor. I just wanted to get that out. Thank you. No, no, no, no, no. Done that. Another one. Yeah, Jenny don't. No, that's not problem. My, my question is not only for you but for my members and and even if we have friends of members or family of members on. This, you, you, know you teach teams Jenny Mm. hmm. Um my my desire and my passion.

You know, we're talking to members that are in retirement or going close to retirement and things like that. And that's this is fine. But I just don't know how to get our young people to the table You know, I look at myself and say, man, I I wasn't taught this when I was young but neither not kick, not only can I say I wasn't taught this, the church never afforded what we're doing right now. Mm That I can recall Um. Yes. It's true. And and so, when I talk to young people and young adults, they're having, they don't know how to handle finances. Mm hmm. They're they're they're struggling as well and yet they won't come to the table or they won't come to something like this and I don't know if you have any Any suggestions or you know, really where my mind is right now, we have two more weeks and I'm saying, I've gotta get Jenny either down here or I've gotta get Jenny on this again for for my young adults, for my young people because they need to know these things now and not when they're forgive me for our age that's on here.

Mm hmm. You know, this is beneficial to me. It's still beneficial to me but how much more beneficial could it be to someone who is in their twenties? Who's got that time? Cuz you put that time in there, that's the greatest multiplier. And you know, we know the Lord is coming soon and and and many times in church settings, we put off teaching information because we think the Lord is going to come before that time. Mm. my thing is we need to occupy till till he comes. Right. You know, and not teach our children to bury things in the sand but to go to the exchanges as Matthew 2five says and and exchange their monies to to gain interest. No, absolutely. Um one of the successes that I've had even with the young people that I've taught, I I've they have to be together, right? They have to be amongst their age. They can't they weren't going to come to this because. Right. We're we're old schoolers, right? Is that what they call us? OGs, right? Or whatever. They don't want to, they don't want to mingle with us.

They rather mingle within their same age range, right? And one thing I learned about teaching kids that I've taught seven year olds, right? Different phases but the the age groups have to be close. They can't be large. They have to be close because you're able to talk about the same things in relation, right? And so, when I teach the teens who are probably high school or mid high schooler to first year of college, they're they're kind of a easy mix because a lot of them are working, you know, doing.

So, I'm able to talk about different things and and my approach to them is, let's talk about it. Let's, you know, who's got the latest Xbox? Oh, I got it. Okay. Boom, boom, boom. You know, you could own, you know, Sony Stock instead and make more on Air Jordan's and Nike stock than you can and meeting them where they're at. Sure. Right? And not not, not, this, I would, this is not even what they, what they're into, you know, the suitcases, I have a different analogy for them and stuff like that. It's a suitcases but it's it's a little bit easy but I take them on a journey of understanding what it takes to operate a household.

So sometime so sometime next year, in other words, we're going to set this up where you're presenting to my young adults. Okay Yeah. They we talked about the first check. What do you do? You know, what's FICA? Who is that? We we we break all that stuff down. I'm like, really? I was like, yeah, But one of the, one of the best things that I implemented last year, I started doing based on some feedback and my wife, obviously, she's hearing me. I think maybe you should do this and do that and one of the things I added was I gave them. I allowed them to to pick occupations. Right? And and they didn't pick em, I signed them occupations, and one was a journalist, right? A person that really didn't go to school, you know, had a little bit of school, then I picked the tradesperson, then I picked a person that went to full college and did all this, but I made their expenses relative to where they were, right? Because when you. Right. When you go to college, you have a, hey, I need to drive a cars.

All the kids gotta go to private school. So, you have a higher, you know, expenses and then, I asked them, but before we got there, I asked them, how did they want to live? Do you want to live in a one bedroom? You want to live in a studio apartment? So, I take them on these different journeys to make them think, right? Because when I started sharing with my kids our bills, their their mouths dropped to the floor. It's like, that's why daddy be on you. Cuz I showed them what the bills look like. I was like, wow. That's why you're in college. don't have to motivate them to go to college. They know why they're in college. Right. Both of them. Both of my points. So, yeah That's where you're at. So, Pastor, I mean, you know me, I got IH. My strength is seven to seventy. You know, and that that's that's my that's the realm that I operate in. So, I appreciate I appreciate you. I appreciate your church. I appreciate miss Richardson rooting for me in my analogies because that just keeps me fired up.

Definitely. And I appreciate everyone under good questions and stuff like that. Uh I guess I'll take one more question, Pastor. If anybody has anything other than that, we can wrap it up. I'm I'm good. Anyone has any comment or question? One last one? Alright, I guess we don't. Jenny Again, thank you so much for ending our fourth week. We only have two weeks left. 2 weeks left. It's been a joy for those of us, for those of you joining us via Facebook Live. Uh we thank you for joining us. Uh We want you to know that if you have any other questions, if you need to contact us, you can reach us at 417 South Tamron Avenue, Compton, California. Nine zero two two zero or you can reach us at three two three seven seven four zero one eight one. we have our service this coming Sabbath. Um where this title of the sermon will be the storehouse.

The storehouse. We have a baptism being planned and we look forward to next week. Next week will be week five. November the tenth. With Jenny Jones our penultimate penultimate Meeting next week and I've been richly blessed by Brother Jenny Jones ' presentations along with everyone here. And that we can take this information and put it and apply it to our daily lives. Uh invite you to enter a word of prayer with me. Uh Father now God we thank you for your manifold blessings. We pray that you would consistently look over us Forgive us of our sins and remember that that we are but dust. Now, may the lord bless you and keep you. May the lord make his face to shine upon you and be gracious unto you. May the lord lift up his continents upon you and give you peace both now and forevermore. Amen. May god bless us as we endeavor to be the heads and not the tail else.

Have a good night everyone. Well, Pastor, thank you, sir. Thank you. You too, Pastor. Thank you. Thank you.

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