WEBVTT 00:01.789 --> 00:05.289 This is a 1575 A Fn Sasao 00:05.739 --> 00:08.750 special feature . Get out your notepads , 00:08.760 --> 00:11.130 fire up your smart devices and get 00:11.140 --> 00:14.250 ready to dive into a wealth of 00:14.260 --> 00:17.209 financial knowledge . It's time 00:18.170 --> 00:22.159 for money Mondays . Show 00:22.170 --> 00:24.114 me the money , show me the money , 00:26.180 --> 00:30.159 show me the money . Hello 00:30.170 --> 00:33.729 CF DJ Big Sky here A K A petty 00:33.740 --> 00:35.919 officer , Riley mcdowell and I am 00:35.930 --> 00:38.119 sitting down in studio once again with 00:38.130 --> 00:41.040 Mr Orca Mr Nor Okada . He's the 00:41.049 --> 00:43.216 accredited financial counselor over at 00:43.216 --> 00:45.216 the Fleet and Family Support Center 00:45.216 --> 00:47.160 here in Saso . He is uh one of our 00:47.160 --> 00:49.327 faves in the area and uh we're sitting 00:49.327 --> 00:52.900 down to talk about building wealth , 00:52.909 --> 00:55.242 generational wealth . That's a buzzword , 00:55.242 --> 00:57.465 generational wealth . Yeah . You know , 00:57.465 --> 00:59.631 teach your kids right . That's right . 00:59.631 --> 00:59.159 How we doing today ? I'm doing all 00:59.169 --> 01:01.336 right . How about yourself ? I'm doing 01:01.336 --> 01:03.558 very well . I can't complain . So to uh 01:03.558 --> 01:05.725 jump things off without further ado uh 01:05.725 --> 01:07.891 I thought we'd talk about , you know , 01:07.891 --> 01:10.129 some beginner's guide to securing your 01:10.139 --> 01:13.330 financial future . Um And for starters , 01:13.930 --> 01:16.129 I want to talk about net worth . So I 01:16.139 --> 01:18.195 know a lot of people like to look at 01:18.195 --> 01:20.306 celebrities , net worth . How much is 01:20.306 --> 01:22.417 this person worth . But net worth can 01:22.417 --> 01:24.830 also be very important for you to know 01:24.839 --> 01:27.569 about your own finances . How can 01:27.580 --> 01:30.190 somebody calculate their own net worth ? 01:30.199 --> 01:32.477 And why is that so significant to know ? 01:32.477 --> 01:34.750 Ok , so I think net worth is the , is 01:34.760 --> 01:36.927 the beginning , right ? So basically , 01:37.162 --> 01:39.351 um , everybody thinks that the more 01:39.361 --> 01:41.417 they make the wealthier they get and 01:41.417 --> 01:43.583 that's not a true value , a measure of 01:43.583 --> 01:45.805 wealth . The true value , wealth is net 01:45.805 --> 01:48.083 worth . It's difference between assets , 01:48.083 --> 01:47.832 stuff that appreciates for you , uh , 01:47.842 --> 01:49.953 makes money for you and the liability 01:49.961 --> 01:52.017 things that you owe . So like a good 01:52.017 --> 01:54.239 example would be if you have a mortgage 01:54.239 --> 01:56.405 on a house , right ? The equity in the 01:56.405 --> 01:58.628 house is your asset and the , the , the 01:58.628 --> 01:58.482 mortgage that the money that you owe 01:58.491 --> 02:00.658 the bank is your liability . So why is 02:00.658 --> 02:02.824 it important ? I'm a big believer that 02:02.824 --> 02:04.991 you should calculate your net worth at 02:04.991 --> 02:06.991 least once a year , right ? Because 02:06.991 --> 02:09.102 it's a starting point . It's ac is my 02:09.102 --> 02:11.324 net worth going up , right ? Um , or is 02:11.324 --> 02:13.547 it going down ? So what am I doing ? So 02:13.547 --> 02:15.658 if you have a lot of debts as you pay 02:15.658 --> 02:17.769 your debts down , your net worth will 02:17.769 --> 02:20.102 increase . It's just a snapshot in time . 02:20.102 --> 02:22.158 If you ever took a business class or 02:22.158 --> 02:24.158 something called a balance sheet or 02:24.158 --> 02:26.380 whatever , it's a snapshot in time that 02:26.380 --> 02:28.491 shows you where you're at net worth . 02:28.491 --> 02:30.658 Yeah , something that , uh , I need to 02:30.658 --> 02:32.658 start calculating on a more regular 02:32.658 --> 02:34.713 basis because if you got any kind of 02:34.713 --> 02:36.935 financial goals , this is a good way to 02:36.935 --> 02:38.991 track those goals . Correct . Yeah , 02:38.991 --> 02:40.935 definitely . Um And so we talked a 02:40.935 --> 02:43.269 little bit about off the air about this , 02:43.269 --> 02:42.555 right ? A lot of folks don't save 02:42.565 --> 02:44.565 enough because they don't tie their 02:44.565 --> 02:46.621 goal source to , to savings and then 02:46.621 --> 02:48.787 they also , they don't make them smart 02:48.787 --> 02:50.732 goals , like specific measurable , 02:50.732 --> 02:52.676 actionable , realistic or timely , 02:52.676 --> 02:54.787 right ? Um They just say uh I want to 02:54.787 --> 02:56.954 do this . So I , I made a comparison . 02:56.954 --> 02:59.009 So if you don't know , and we talked 02:59.009 --> 03:01.176 about the network thing , if you don't 03:01.176 --> 03:03.343 know if you think you're in California 03:03.343 --> 03:05.398 and you want to drive to , let's say 03:05.398 --> 03:07.621 Washington State , but you're really in 03:07.621 --> 03:09.843 Colorado , you're not gonna get there , 03:09.843 --> 03:11.898 you're gonna be a roundabout kind of 03:11.898 --> 03:11.740 way . It's the same thing . You have to 03:11.750 --> 03:13.917 know a starting point and net worth is 03:13.917 --> 03:16.083 your starting point . It's OK to start 03:16.083 --> 03:18.083 off in Colorado , isn't it ? Yeah , 03:18.083 --> 03:17.490 it's OK to start in Colorado if you're 03:17.500 --> 03:19.611 really in Colorado , right ? You know 03:19.611 --> 03:21.667 what I mean ? Pacific , northwest of 03:21.667 --> 03:23.722 the house . But you gotta know where 03:23.722 --> 03:23.649 you're at and a lot of folks don't know 03:23.660 --> 03:25.882 where they're at and that's a problem . 03:25.882 --> 03:27.993 Yeah . So what would you suggest ? Uh 03:27.993 --> 03:31.009 people make kind of realistic financial 03:31.020 --> 03:33.649 goals ? Five years out , 15 years out 03:33.660 --> 03:35.993 both . What does that usually look like ? 03:35.993 --> 03:38.104 So it all depends . Well , it depends 03:38.104 --> 03:40.104 on the time horizon . So I have , I 03:40.104 --> 03:42.382 have an acronym I use is called sly um , 03:42.382 --> 03:44.327 safety liquidity in the yield . It 03:44.327 --> 03:46.549 means so my thing is if I need it to be 03:46.549 --> 03:48.660 safe , my money to be safe and I need 03:48.660 --> 03:50.716 to be liquid just means a fancy word 03:50.716 --> 03:52.771 saying how fast things can be turned 03:52.771 --> 03:54.827 into cash . But I don't care so much 03:54.827 --> 03:54.509 about how much I make of it . It's 03:54.520 --> 03:56.687 going in a couple of places going FDIC 03:56.687 --> 03:58.759 insured , it's going into high yield 03:58.770 --> 04:00.992 savings accounts , money market savings 04:00.992 --> 04:03.159 accounts , regular savings accounts um 04:03.159 --> 04:04.881 for my short term goals for my 04:04.881 --> 04:07.159 emergency fund , my travel money . Now , 04:07.159 --> 04:09.492 if I need it to be like we talked about , 04:09.492 --> 04:08.529 you know , buying a house in a couple 04:08.539 --> 04:10.706 of years , right ? I might put that in 04:10.706 --> 04:12.928 a certificate . Why ? Because basically 04:12.928 --> 04:14.983 I can lock it away as a time frame . 04:14.983 --> 04:17.261 That's my medium term goals for myself , 04:17.261 --> 04:19.428 lock it away for a time frame . Um And 04:19.428 --> 04:18.940 it's gonna give me a higher interest 04:18.950 --> 04:21.172 rate than my savings account . And then 04:21.172 --> 04:23.394 my long term goals like , you know , so 04:23.394 --> 04:25.506 I don't care about safety so much . I 04:25.506 --> 04:27.672 don't care about liquidity but yield . 04:27.672 --> 04:29.839 So one of the things I'm trying to get 04:29.839 --> 04:32.006 people to understand the reason why we 04:32.006 --> 04:34.172 invest is not to get rich . The reason 04:34.172 --> 04:36.117 why we invest is to beat inflation 04:36.117 --> 04:36.040 right , to beat inflation over time . 04:36.049 --> 04:38.271 So I want to make money higher than the 04:38.271 --> 04:40.160 inflation rate and that's money I 04:40.160 --> 04:42.049 invest in and I usually say don't 04:42.049 --> 04:44.271 invest in any money you can't afford to 04:44.271 --> 04:46.271 lose . Ok . So um to wrap things up 04:46.271 --> 04:49.359 there , you need to be cognizant of 04:49.369 --> 04:51.820 your net worth , you know , shooting to 04:51.829 --> 04:53.940 calculate your net worth on an annual 04:53.940 --> 04:55.996 basis . And that is of course , your 04:55.996 --> 04:58.739 assets minus your liabilities as far as 04:58.750 --> 05:00.920 setting financial goals , you need to 05:00.989 --> 05:04.420 be realistic . So when you say 05:04.429 --> 05:06.880 realistic , some people say like , hey , 05:06.890 --> 05:08.946 I want to be a billionaire . Is that 05:08.946 --> 05:11.001 unrealistic ? Well , it might not be 05:11.001 --> 05:13.057 unrealistic , but you have to have a 05:13.057 --> 05:14.890 specific number . I want to be a 05:14.890 --> 05:17.001 billionaire by this time frame and by 05:17.001 --> 05:19.112 investing or saving this much money . 05:19.112 --> 05:21.223 And so um unless you use a calculator 05:21.223 --> 05:23.446 or you use an account or something like 05:23.446 --> 05:22.940 that , you may , they may not be 05:22.950 --> 05:24.950 realistic . Like it's like saying I 05:24.950 --> 05:27.006 came to saso last week and I want to 05:27.006 --> 05:29.420 save $100,000 by next week is that may , 05:29.429 --> 05:31.651 may , may be some realistic if you're a 05:31.651 --> 05:33.873 high income earner , but maybe not . So 05:33.873 --> 05:35.651 let's make it a little bit more 05:35.651 --> 05:34.839 realistic . Let's break down the 05:34.850 --> 05:36.961 numbers . So one of the things I tell 05:36.961 --> 05:39.017 people , once you find your number , 05:39.017 --> 05:41.183 break out a calculator and see if it's 05:41.183 --> 05:43.239 realistic for you and you're putting 05:43.239 --> 05:45.461 things on paper , spreadsheets , making 05:45.461 --> 05:47.786 a plan . Uh and you need to , you know , 05:47.795 --> 05:50.585 put that plan with a time frame in 05:50.596 --> 05:52.946 which you hope to reach said number . 05:53.055 --> 05:55.705 What about being flexible when setting 05:55.716 --> 05:57.946 financial goals . Do you know things 05:57.955 --> 05:59.844 happen in life ? You have medical 05:59.844 --> 06:02.066 emergencies , things of that nature . I 06:02.066 --> 06:04.066 think people need to remember to be 06:04.066 --> 06:03.966 flexible . Is that yeah , definitely 06:03.976 --> 06:05.920 you should be flexible . Like like 06:05.920 --> 06:08.087 people come here and they say , well , 06:08.087 --> 06:10.254 Mr Norm , I had $20,000 save but I had 06:10.254 --> 06:12.309 to , I had to come out of the pocket 06:12.309 --> 06:14.532 20,000 stop . But the first thing I say 06:14.532 --> 06:16.587 to him is at least you had $20,000 . 06:16.587 --> 06:18.698 You have to be flexible folks , stuff 06:18.698 --> 06:20.865 happens , things happen . So basically 06:20.865 --> 06:23.087 you gotta be kind to yourself , right ? 06:23.087 --> 06:22.851 You got , you know , um so if say you 06:22.861 --> 06:25.028 had to come out of pocket , you had to 06:25.028 --> 06:27.083 do some stuff , then you calculate a 06:27.083 --> 06:29.139 plan , how to get back on track with 06:29.139 --> 06:28.402 those things . But you got to allow 06:28.411 --> 06:30.522 yourself a little bit of space . Uh a 06:30.522 --> 06:32.578 spending plan , a budget or whatever 06:32.578 --> 06:34.578 doesn't have to be so uh uh rigid . 06:34.578 --> 06:36.832 Yeah , like you're saying , um keeping 06:36.842 --> 06:38.953 track of your day to day spending and 06:39.097 --> 06:41.717 you know , having a working budget is 06:41.727 --> 06:45.078 so pivotal , so crucial . Um How do you 06:45.088 --> 06:47.608 know if you need to make a change to 06:47.618 --> 06:50.018 your budget ? Ok . So for myself , how 06:50.028 --> 06:52.139 I need to make a change if , first of 06:52.139 --> 06:54.250 all , if , if I'm not saving , if I'm 06:54.250 --> 06:56.472 not investing . And another third thing 06:56.472 --> 06:58.639 is if uh if I'm not enjoying my life , 06:58.639 --> 07:00.750 right ? So I'll take a look at how my 07:00.750 --> 07:02.806 spending is going . Are there things 07:02.806 --> 07:02.798 that I'm spending on that ? I don't 07:02.808 --> 07:05.178 value that I could save money on like , 07:05.187 --> 07:07.243 so I may cut stuff out like eating . 07:07.243 --> 07:09.520 That's kind of important to me , right ? 07:09.520 --> 07:11.576 Because it's now it's just me and my 07:11.576 --> 07:13.743 wife , but maybe especially in Japan , 07:13.743 --> 07:15.854 right ? So basically I'll , I'll look 07:15.854 --> 07:17.965 at areas that are not so important to 07:17.965 --> 07:20.131 me . I'll cut back in those areas so I 07:20.131 --> 07:22.465 can allocate money for saving investing . 07:22.465 --> 07:24.243 Um saving is super huge because 07:24.243 --> 07:26.465 emergency funds , right ? Things happen 07:26.465 --> 07:28.520 and you uh mentioned something about 07:28.520 --> 07:30.783 like a breakdown in regards to 07:30.794 --> 07:33.433 budgeting like a a 50 30 20 breakdown 07:33.713 --> 07:35.546 there . So the navy don't get in 07:35.546 --> 07:37.602 trouble in this , but the navy , the 07:37.602 --> 07:40.049 navy uses 70 2010 70% to um to living 07:40.059 --> 07:42.790 expenses . Uh 20% no more than 20% of 07:42.799 --> 07:45.390 debt and then 10% for your your savings . 07:45.540 --> 07:47.596 Well , in the Sylvania sector , they 07:47.596 --> 07:49.707 use another budgeting . It's 50 30 20 07:49.739 --> 07:53.040 50% the needs 20% 30% the wants . I 07:53.049 --> 07:55.739 mean he wants and then uh uh 20% the 07:55.750 --> 07:57.694 savings , right ? So whichever one 07:57.694 --> 08:00.450 works for you . Um As long as for me , 08:00.459 --> 08:02.570 as long as you're saving , but I like 08:02.570 --> 08:04.626 personally no debt . I mean , if you 08:04.626 --> 08:06.681 have debt , I don't consider cars if 08:06.681 --> 08:08.792 they're reasonable time frames like 3 08:08.792 --> 08:10.959 to 4 years , car payments , stuff like 08:10.959 --> 08:13.070 that or mortgages . I'm talking about 08:13.070 --> 08:15.292 credit card debt mostly and loan debt , 08:15.292 --> 08:17.515 right ? Because those guys will get you 08:17.515 --> 08:17.220 in big trouble , make sure to pay 08:17.230 --> 08:19.397 yourself first . You just sound like a 08:19.397 --> 08:21.619 bill . The first bill you should pay is 08:21.619 --> 08:23.674 yourself . That's right . Ok . So um 08:23.674 --> 08:25.897 when thinking about your future , a lot 08:25.897 --> 08:28.119 of people like to bring up this idea of 08:28.119 --> 08:30.790 an investment period uh in regards to 08:30.799 --> 08:32.830 your financial goals , when someone 08:32.840 --> 08:35.409 says Time Horizon , for someone that 08:35.419 --> 08:37.641 may not know what does , what does Time 08:37.641 --> 08:39.475 Horizon mean ? All right , great 08:39.475 --> 08:41.697 question . So a lot of folks don't like 08:41.697 --> 08:43.530 investing a lot of younger folks 08:43.530 --> 08:45.752 especially don't like investing because 08:45.752 --> 08:47.975 they don't know that Time Horizon , how 08:47.975 --> 08:47.859 far out or what they're investing for , 08:47.869 --> 08:50.340 right ? So Time Horizon means for me is 08:50.349 --> 08:53.090 that um like we mentioned before buying 08:53.099 --> 08:55.099 a house , what's my time rising for 08:55.099 --> 08:57.155 buying a house ? Maybe three years , 08:57.155 --> 08:59.266 two years , whatever , what's my time 08:59.266 --> 09:01.043 horizon for investing for , for 09:01.043 --> 09:03.210 retirement ? We're looking about 10 to 09:03.210 --> 09:05.377 15 years down the road , usually short 09:05.377 --> 09:07.321 term goals or maybe 1 to 2 years , 09:07.321 --> 09:09.488 medium term goals , maybe 3 to 5 years 09:09.488 --> 09:11.710 and then your long term goals like five 09:11.710 --> 09:11.690 years and beyond . So those are your 09:11.700 --> 09:13.422 time horizons know what you're 09:13.422 --> 09:15.533 investing for . That's the reason why 09:15.533 --> 09:17.677 TSP folks TSP is not for now . Like 09:17.687 --> 09:19.409 I'll ask people , what are you 09:19.409 --> 09:21.631 investing in TSP for if you want to get 09:21.631 --> 09:21.398 out of the Navy ? No , it's not for 09:21.408 --> 09:23.630 when you get out of the Navy . It's for 09:23.630 --> 09:25.852 when you retired , e least you can take 09:25.852 --> 09:28.075 out a TSP is 59.5 . So you have to look 09:28.075 --> 09:30.241 beyond that . Yeah . And uh this might 09:30.241 --> 09:32.408 be going down a little bit of a rabbit 09:32.408 --> 09:34.519 hole . But I must ask you . So I know 09:34.519 --> 09:36.686 sometimes when people are investing in 09:36.686 --> 09:38.797 the stock market , they think about , 09:38.797 --> 09:40.852 hey , this is a stock that I want to 09:40.852 --> 09:42.908 hold on to forever . The big example 09:42.908 --> 09:44.686 that comes to mind is Berkshire 09:44.686 --> 09:46.852 Hathaway and Coca Cola , right ? But I 09:46.852 --> 09:48.908 know other people sometimes think of 09:48.908 --> 09:51.019 like a price point in which they want 09:51.019 --> 09:53.019 to sell a stock . What do you think 09:53.019 --> 09:55.130 about that ? Do you like to invest in 09:55.130 --> 09:55.096 stocks ? Do you want to hold on to it 09:55.106 --> 09:57.328 for the long haul or how do you look at 09:57.328 --> 09:59.606 that ? So I'm a buy and ho kind of guy . 09:59.606 --> 09:59.416 But I do have a mentor , my mentor , 09:59.426 --> 10:01.648 one of my mentors told me like he keeps 10:01.648 --> 10:03.759 us . So he'll decide when he goes out 10:03.759 --> 10:05.982 and gets a company , right ? He'll , is 10:05.982 --> 10:08.037 a long term buy , like his long term 10:08.037 --> 10:10.037 buy is Disney , right ? He's had it 10:10.037 --> 10:12.093 forever or is it something that he's 10:12.093 --> 10:14.204 maybe he'll , he'll wait , he'll have 10:14.204 --> 10:16.148 an entry point and an exit point , 10:16.148 --> 10:18.148 right ? So he'll say , ok , when it 10:18.148 --> 10:20.370 gets to this much money , I'll pull out 10:20.370 --> 10:20.104 of it , right ? It's not something for 10:20.114 --> 10:22.403 the future . And so one of the ways if 10:22.414 --> 10:24.636 you ever invest , you can do that , not 10:24.636 --> 10:26.525 in TSP but outside you have limit 10:26.525 --> 10:28.636 orders that you can put a limit order 10:28.636 --> 10:30.692 in . So you can put an order in that 10:30.692 --> 10:32.692 says when this stop stock hits this 10:32.692 --> 10:32.601 certain limit , right ? This amount of 10:32.611 --> 10:34.722 money , I want you to sell it or when 10:34.722 --> 10:36.667 the stock hits a certain amount of 10:36.667 --> 10:38.833 money , I want to buy it . Right ? And 10:38.833 --> 10:41.000 I'm a big believer in having different 10:41.000 --> 10:43.222 accounts for different things . So your 10:43.222 --> 10:45.222 TSP could you be a go to retirement 10:45.222 --> 10:47.333 account ? Right . But I have accounts 10:47.333 --> 10:47.221 that I don't wanna say play money , but 10:47.231 --> 10:49.398 accounts that I can do dabble a little 10:49.398 --> 10:51.632 bit in other stuff like crypto is a big 10:51.642 --> 10:53.642 thing . People say , do you endorse 10:53.642 --> 10:55.698 crypto ? I don't think it's wrong if 10:55.698 --> 10:55.591 that's what you wanna do as long as 10:55.601 --> 10:57.823 you're not putting whole portfolio into 10:57.823 --> 11:00.289 crypto . I mean , people do say Bitcoin 11:00.299 --> 11:02.619 is back on the rise , Bitcoin if you're 11:02.630 --> 11:04.130 going to invest the crypto 11:04.130 --> 11:06.130 Cryptocurrency , Bitcoin , Ethereum 11:06.130 --> 11:08.186 pretty much are more stable than all 11:08.186 --> 11:10.408 the other coins out there . All right . 11:10.408 --> 11:12.463 That leads us to risk tolerance when 11:12.463 --> 11:14.630 talking about , you know , investing , 11:14.630 --> 11:16.630 what does risk tolerance mean ? All 11:16.630 --> 11:18.741 right . So you have a great term . So 11:18.741 --> 11:20.963 there's two terms actually risk to risk 11:20.963 --> 11:23.019 capacity , right ? So risk tolerance 11:23.019 --> 11:25.229 means that um how like I just asked 11:25.239 --> 11:27.350 somebody this morning , if the market 11:27.350 --> 11:29.350 dropped 36% how would that make you 11:29.350 --> 11:31.461 feel ? And they were like Oh , yeah . 11:31.630 --> 11:33.852 Yeah . So one of the things is a lot of 11:33.859 --> 11:35.692 people get into the stock market 11:35.692 --> 11:37.748 investing and they think they have a 11:37.748 --> 11:39.748 high risk tolerance . Why ? Because 11:39.748 --> 11:41.748 everybody has a high risk tolerance 11:41.748 --> 11:41.460 once the market is going up . Right . 11:41.510 --> 11:43.788 It's when the market drops , you don't , 11:43.788 --> 11:45.899 you find out what your risk tolerance 11:45.899 --> 11:48.121 is on the , on the back side of that is 11:48.121 --> 11:50.232 risk capacity and that's a little bit 11:50.232 --> 11:52.343 different . So I may have a high risk 11:52.343 --> 11:54.288 tolerance but maybe I didn't start 11:54.288 --> 11:56.343 investing to later on . So I have to 11:56.343 --> 11:58.510 make a certain amount of money to live 11:58.510 --> 12:00.677 comfortably . So I have to , I have to 12:00.677 --> 12:02.843 monitor my risk tolerance with my risk 12:02.843 --> 12:05.010 capacity because there's a mark I have 12:05.010 --> 12:07.232 to make , right ? And so people have to 12:07.232 --> 12:07.114 balance both of those things . You 12:07.125 --> 12:09.494 might have nerves , nerves of steel , 12:09.505 --> 12:11.449 right ? But I might need a million 12:11.449 --> 12:13.449 dollars , right ? Or something like 12:13.449 --> 12:13.054 that . And I can't afford to lose it . 12:13.065 --> 12:15.121 So I gotta be realistic about that . 12:15.121 --> 12:17.929 All right . And another term that is 12:17.940 --> 12:20.162 coming to mind that I think people need 12:20.162 --> 12:23.690 to be aware of is inflation risk . What 12:23.700 --> 12:26.359 do people uh discuss in relation to 12:26.369 --> 12:28.647 that term ? Inflation risk ? All right . 12:28.647 --> 12:30.813 So people don't , a lot of folks don't 12:30.813 --> 12:32.869 understand inflation or how , how it 12:32.869 --> 12:34.925 affects them . So I usually give the 12:34.925 --> 12:37.147 example when I came in the Navy in 1984 12:37.147 --> 12:39.313 A Ford Mustang costs about $6700 . Now 12:39.313 --> 12:41.536 you can't get a Ford Mustang for that . 12:41.536 --> 12:43.591 And so folks , the reason why you're 12:43.591 --> 12:45.536 investing because savings accounts 12:45.536 --> 12:47.536 don't beat inflation . You want the 12:47.536 --> 12:49.647 same buying power um that you have um 12:49.647 --> 12:51.758 now you want the same buying power in 12:51.758 --> 12:53.869 the future . So some safe assets that 12:53.869 --> 12:56.091 we think are safe , like the G fund and 12:56.091 --> 12:58.320 TSP or your savings accounts , they are 12:58.330 --> 13:01.000 safe and , but there are risk . Uh it's 13:01.010 --> 13:03.390 not investment risk or a market risk , 13:03.400 --> 13:05.622 but it's uh inflation risk . You're not 13:05.622 --> 13:07.678 beating the rate of inflation , your 13:07.678 --> 13:10.011 money is not growing for you as fast as , 13:10.011 --> 13:12.122 as you want it to be . And we all got 13:12.122 --> 13:11.979 our fingers crossed that the inflation 13:11.989 --> 13:14.156 rate is gonna continue to decline this 13:14.156 --> 13:16.289 year . The Feds are shooting for 2% 13:16.299 --> 13:18.521 right ? And now houses are , yeah , I , 13:18.521 --> 13:20.743 I personally feel that housing mortgage 13:20.743 --> 13:23.077 rates won't go as low as 3% for a while , 13:23.077 --> 13:25.299 but at least I'll get a little bit more 13:25.299 --> 13:27.355 reasonable . Yeah , we're all hoping 13:27.355 --> 13:29.521 out here and um to wrap things up long 13:29.521 --> 13:32.109 term holds in comparison to a medium 13:32.119 --> 13:34.460 term hold . Uh What can you give for 13:34.469 --> 13:36.979 examples uh for those two terms ? Ok . 13:36.989 --> 13:39.799 So a long term hold would be your TSP , 13:39.809 --> 13:41.976 right ? Something or investment that's 13:41.976 --> 13:44.309 gonna that you're saving for retirement . 13:44.309 --> 13:46.365 You know , you know , we always talk 13:46.365 --> 13:48.365 about the 7030 portfolio , 64 60 40 13:48.365 --> 13:50.587 portfolio long term hole . Now my short 13:50.587 --> 13:52.698 term for me a short term hole is my , 13:52.698 --> 13:54.309 uh , medium term holds is my 13:54.309 --> 13:56.476 certificates , right ? Um , maybe 3 to 13:56.476 --> 13:59.090 6 years . Um , but my , my short term 13:59.099 --> 14:01.320 Hale is my , um , my savings account 14:01.330 --> 14:03.663 because I need those certifications and , 14:03.849 --> 14:05.940 and , uh , um , for emergencies and 14:05.950 --> 14:08.117 things like that . So that's how I , I 14:08.117 --> 14:10.228 parcel money into different pockets . 14:10.228 --> 14:12.283 Right ? Or some people say buckets , 14:12.283 --> 14:14.339 right ? Different buckets for that . 14:14.339 --> 14:16.506 Right . Awesome . All right . Well , I 14:16.506 --> 14:18.728 think we learned a lot today and I hope 14:18.728 --> 14:20.783 the listeners did as well . I'm sure 14:20.783 --> 14:20.679 they did , but I'd like to thank you 14:20.690 --> 14:22.912 for joining me in studio once again for 14:22.912 --> 14:24.746 another awesome segment of Money 14:24.746 --> 14:27.465 Mondays with Mr Nor O Kata , the 14:27.474 --> 14:29.530 credited financial counselor over at 14:29.530 --> 14:31.641 the Fleet and Family Support Center . 14:31.641 --> 14:33.585 And uh , yeah , we're all building 14:33.585 --> 14:35.307 wealth out here , generational 14:35.307 --> 14:37.474 generational wealth . That's what it's 14:37.474 --> 14:37.205 all about . Right . That's right . 14:37.215 --> 14:38.005 Thank you so much .