Episode 109: Part 2 The Simple Way with LL Cool J

The best financial lessons you can teach your kids with Lance Lyday

SHOW NOTES

Lance Lyday is back to teach us the power of compound interest, useful financial lessons you can teach your kids, and the importance of finding balance…

 

In this episode, financial planner Lance Lyday talks about how we can better manage our finances and lifestyle to achieve our financial goals.

 

He talks about the importance of finding balance, keeping your emotions out of your decisions, and why you need a solid plan to stick to.

 

Lance also shares with us the importance of having a proper financial education and some helpful lessons you can use to teach your kids about money and saving…

 

“Risk doesn’t come from the market, risk comes from our reaction to it.” – Lance Lyday

 

“There are two emotional enemies to investment success, fear and greed.” – Lance Lyday

 
Time Stamps:

01:00 – Compound interest and the importance of having a proper financial education.

05:46 – Why you need to avoid emotions in the market and take it slow.

09:29 – How much you need to start investing and the power of time.

12:49 – The importance of building healthy saving habits.

13:48 – Helpful lessons to teach your kids about money and saving.

18:58 – The importance of balance and how everyone is different.

20:29 – How different generations track their spending.

24:06 – The key aspects to successful financial planning.

27:23 – Why you can’t only focus on your savings.

 

Resources:

The Psychology of Money

 

Connect with Ben Jones:

 

TRANSCRIPT

BEN: As we ended up part one getting to know Lance Lyday a just a little bit more, we find out that Lance does some financial education with some of his clients, particularly the sons and daughters of Tony. And so it’s an interesting and funny situation that leads us to some of the wisdom that Lance could pass on to all of us that is very simple and easy to understand. So stay tuned as we start part two, the final part of our discussion with Lance Lyday. 

LANCE: I think parents are more apt to talk to their kids about what they shouldn’t do, than helping them learn what they should do and money is a big part of that. And maybe it’s the parent’s fault because they haven’t paid enough attention to it for the moment.

BEN: But do you think it’s because their parents never pass it on to them. So they don’t really have a good role model to say, hey, just kind of talk to my kids about it.

LANCE: Yeah, I think probably most people get their background. I mean, parents, sure, but also their advisors. I mean, I think, you know, you can do absolutely, I’m not smarter than anybody else. I mean, if you spent your time focused on what I do for people, you could do it too. You don’t need me but it’s where I focus my time, I would have no idea how to set up this little studio, it would, I couldn’t do it impossible.

TONY: But if you’re not there, then they’re gonna learn from their buddies in the street, just like the sex thing, and then they’re gonna tell them to buy crypto.

BEN: That’s right. And you know, the one thing I always tell people is like, everybody has a doctor, right refer their physical health. It’s like money is such an interwoven piece of their entire life. It’s like, why don’t you have a ‘doctor’ for your money as well. And people, once they kind of think about it, they’re like, huh, yeah, let’s make a little bit more sense. 

LANCE: Yeah, I think so. So the prop that Tony was referring to, and I speaking with his children, I’ve been used it before. Yep. So a lot of employers or businesses, they provide a retirement plan for their employees to contribute to your 401k or a S&P or whatever it is. And so we have served as the advisor on those in the past. And so part of that role as the advisor is to educate. So whether it’s a, you know, 14 to 17-year-old child, or a 27-year-old line worker or a 45-year-old secretary. You know, if they don’t understand money, they don’t understand money. So the prop, the $1, stacks a $1 bill…

BEN: So it’s with a stack of $1 bill with a whole bunch of filler in the middle. Is that one of those? 

LANCE: Yeah, that’s right. So it’s a stack of 100 or 98 pieces of paper and $1 on either side.

TONY: You know how to catch your attention, he put a couple stacks of those on and they were like…

BEN: Wo dad!

LANCE: So the point of that exercise is to show the power of compound return. So you can average out the rate of return on a treasury bond over 25 years, and its growth a little bit.

BEN: We lost a lot 72. 

LANCE: That’s exactly where I was gonna go. So if you explain the rule of 72 to them with money, and instead of just giving them numbers, you can take another big old stack, he will the other ones, set it on top of it. It that makes a point like that. So that’s the reason for the prop. So there’s a quote, I’m gonna butcher it, I’ve heard it last couple days. It’s the risk is doesn’t come from the market, risk comes from our reaction to it. 

BEN: Ooh, that is a good one. 

LANCE: So over 25 years, 30 years, I don’t know who our audience is whatever time frame. Yeah, markets are going to do stock market is going to do well at some point, at some point it’s not. You know, the bond market, same thing, real estate, the same thing. But clearly, over time, equities will provide stocks will provide a greater rate of return than other asset classes. Historically speaking logically if you look into it. However, with that extra return also comes the extra risk and risk is defined as the value of the dollar you have today being less tomorrow. Right? So that’s volatility risk. There’s also risk the company could go out of business and things like that but for practical purposes, it’s the risk of the value of your portfolio going down and what is your reaction to it. So over time, equity markets have and in all likelihood will trend up. But it’s a bumpy ride. 

TONY: Every time it goes down I call Lance edit that out. The heck is going on here.

LANCE: So every time like market goes down, Tony calls me and says we should sell. And I’ll remind him that if we only buy when the market goes up, and so when the market goes down, then we’re absolutely guarantee we’re gonna lose money. Cause if you buy high and sell low, you lost money. 

BEN: I think it was two weeks ago. Go ahead.

TONY: Yeah, I was thinking I was trying to tell him I don’t want to buy stocks anymore, I just want to buy stonks.

BEN: That stocks that only go up are stonks.

LANCE: Is that really? 

BEN: They are. 

TONY: Okay. So that’s what like hanging out with a college kids right? As zoomers will tell you that they only buy stonks.

BEN: Because they’re the only ones that just go up. But we just read a, I just read a book called The Psychology of Money, which isn’t really about cerebral it was this very interesting story which goes through and it says with the compounding of money, did you know that what he called 99% of Warren Buffett’s wealth actually happened after, I think it was the age of 50 or 65 I can’t remember one of those because the compounding of money. He started when he was some ridiculously young number, like 9 or 10 or 11 and because he was allowing it to compound and he was growing his money, that thing just took off. And so he also, I think in that same podcast, we said the last 15 years on the S&P, there was this research analysis that said, if you stayed in the market, and you missed the four best trading days, I’m sure you’ve heard this Yes, the four best trading days, you actually over the 15 years you lose money. But if you just stay in the market, they are showing, you know, there’s a really good return. 

LANCE: I have heard that. That’s not what it says but yeah. So the point is, do not let your emotions influence your planning. It’s that easy. 

BEN: Stay with your plan. 

LANCE: I mean, we have recent history to reflect on and that is the market’s reaction to COVID last year. Going into the arise of the pandemic, the market was really strong, employment numbers were great. ,If I wanted a job, you could get a job. Budgets were going up. The economy was growing. And we call that a black swan event. That’s an event that you can’t anticipate, it’s not normal, but it has a significant impact. So of course, people were afraid, you know, the market went down 35% in 10 trading days. That cares people, prudently. So if you’re just a trader, and you’re thinking that your emotions are going to lead you right, you went into that period of time feeling pretty good. You sold at the bottom, right? And you probably didn’t wait till it got back to where it was to buy back right? Because that’s what your emotions told you to do. So I have this phrase that I use, and it’s a little over warm, but there are two enemies to investment success, two emotional enemies to investment success: fear, and greed. We want to sell when things are bad because of our fear and we want to buy when things are good because of our greed. And most every amateur investor does that. 

BEN: Yep. And Warren Buffett, what does he say? He says, I buy when there’s blood in the streets. Meaning that when things are knocked down and butchered and everything else, and really low, that’s when I buy because I’m gonna get the best price that I possibly can for whatever company I want to invest in. 

LANCE: Well, it’s nice to be Warren Buffett and be able to buy anything you want, whenever you want. Not all of us have that attitude. So but I would say that it’d be heart-pressed to find anybody in my business that wouldn’t say allocating a little bit of your surplus income every month, buying an index, the s&p 500 index. You do that, you try to remind yourself twice a year, maybe on your anniversary and Christmas or birthday and Christmas, six months apart, try to add another couple dollars or whatever you’re doing. You do that through your working career, you’re gonna have a nice retirement. So don’t worry about what happens. 

BEN: Slow and steady and staying in the market, right? 

LANCE: Be a buyer. Always be a buyer. 

BEN: For most of the people, there’s just a lot of evidence to say, hey, if you just stick to it, stick to your plan slow and steady. it’s okay.

LANCE: You can do that with $25 a month. 

BEN: Exactly. Exactly. Have you read any of those Starbucks millionaires or whatever. It’s like if you invest $5 a day, every day from…

 

TONY: Instead of buying a Starbucks, call me you put that money into investing.

BEN: Yeah, it gets pretty ridiculous. Like over 10 years you’ll have $600,000 when you retire if it’s $5 a day, and it’s a 10% return or whatever but that’s always very interesting for me.

LANCE: I got to believe and I’m fortunate to have surplus cash flow right now. I’ve been working 34 years my job, I know what I’m doing. A lot of people start now they struggle. You gotta be able to find 10 bucks a month in your budget and you can sacrifice that much. So find anything, you find anything. 

BEN: Because for me I we just did this podcast I was saying hey there are these what they called Super suckers were like the fish the shark suckers that stay on the shark and I was like…

TONY: Remora.

BEN: I could be Remora, I don’t know I thought it was a suckerfish or something like that. And what I was trying to say was I promised my kids that I would give them the Disney plus channel for three months over COVID, right? But guess what, I bet you can guess exactly what happened. Did turn in three months or did to turn a lot more.

LANCE: Depends upon whether you like Disney.

BEN: 13 months later, we still got it and it’s still sucking money out of my wallet and if I would have cut it off right when I did we still got Netflix. I mean they’re not going to go completely without anything but that extra seven bucks or 10 bucks, you can find it right and you can put that towards your retirement and it really doesn’t hurt that much, you know, and builds up quick.

LANCE: I don’t know, I would say quick. So it’s like losing weight. I don’t care. If you eat 125 less calories and you exercise every day, you’ll get to where you need to go but it’s not quick. So…

BEN: Got you. That’s probably more fair.

LANCE: I think financial planning in particular, investing is not about immediate gratification. It’s about having a plan trusting in it and keeping your emotions out of it.

TONY: It’s so hard to form a new habit, like chip to do, like 21 days row or something. I mean…

BEN: Like Benjamin Franklin. Yeah.

TONY: So I mean, and it’s little, and like you said, it’s not quick, you don’t see it immediately. Like that diet doesn’t show up in the mirror or on the scale the next day. You got to stick with it and then finally, a month later, six weeks later, you start saying, wow, is there is a difference. But it happens so slowly, you don’t even see it, you know? It’s like whenever you see other people’s kids, wow, they’ve grown so much and your own kids seems like they never grow like it takes forever because you see him every day, right?

BEN: That’s true. But I guess what I’m saying is if you don’t really have anything saved, and then you start saving $5 or $10, that’s a big amount compared to what you had. If you had zero now you’ve got 100. I mean, that starts to make a difference and you know, the focus on it and the compounding of money… Once people go down the road a couple years, and they just wake up and go, oh, my gosh, you know, I’ve got a chunk of change and that’s pretty cool.

LANCE: I will say the same thing you said in a different way. The scale does. I mentioned this earlier about something else. The scale doesn’t matter, it’s the habit that matters. I mean, if it’s $1 a week, $10 a week to $1,000, it’s the habit, that matters.

BEN: Yep. Behavior.

LANCE: And it is, it’s also addictive. Made so we all have that our addictions that are good or addictions that are bad. And managing your cash flow, if done well committed to for a relatively modest amount of time will become addictive.

BEN: So what kind of like insights can you give about helping your kids? You know, we’re talking to families and saying, hey, here’s a couple different, good ways to help your kids to either envision or give them the right skills or otherwise?

LANCE: Yeah, so assuming we’re talking about kids, not children. Look, it’s the difference, right?

BEN: Yeah, we’re somewhere 10, I don’t know, upwards or even if you have some tips on younger than that, that’s great, too.

LANCE: Yeah. I think one, communicating. Learning and then communicating perhaps.

BEN: And what do you mean by communicating?

LANCE: Talk about it.

BEN: Just make it a non, what do you call it, non-event? What’s that?

TONY: Non-taboo.

BEN: Non-taboo? Yes.

LANCE: Yup. Non-taboo, or I hope that milkshake was good.

TONY: It was six bucks.

LANCE: Yeah. Well, you know, that’s fine. So I’ve recommended different things to different people. I really liked the match. 401k, as you guys are familiar with it, you put money in from your salary, your employer puts three matching in there as ripening. That’s right. So there’s no reason that parents couldn’t do the same thing. You know, each month that your child puts an X dollars into a savings account, you’ll match 50% of it or whatever you can afford. And if they take it out, then they have to pay your part back.

TONY: And tax. Penalty and tax. You want to know how 401k works?

LANCE: Their money is their money. But, the match, and if they take it and don’t give it back to you, well, you’ve got problems beyond your child’s sudden financial act. So that’s a good one. Buying things for them that they think they need and you can kind of agree with it is another way to do the same thing. You really need that, okay I’ll buy that for you but you have to put that amount of money in your savings account. So support. Again, we’re trying to build a habit or support, a habit not flip a switch. So it’s another strategy that I’ve seen work well.

BEN: Because we talked at the Shedd Aquarium, which is a famous aquarium in Chicago. And when we were there, Grant wanted an otter. And we just kind of had a cool conversation was like, hey…

TONY: So not an evener?

BEN: Not an evener, an oddener. 

TONY: An otter. Okay.

BEN: And when he was there, we said, hey, Grant, you know, here’s the deal. This thing is I think it was like $28, right? And it’s like Grant…

TONY: A real animal?

BEN: No, it was the stuffed animal.

TONY: Oh, okay, I’m like, wow, 28 bucks, that’s a deal. I want one.

BEN: Yeah, it costs like $5000 a month to actually feed but, we had this conversation, it’s $27 and Grant, look, I just looked it up on Amazon and you can get one for like $7, right? So we walk through the whole thing, and I actually offered him I said, hey, if you wait one day and tomorrow we order it, then I’ll give you $5 for that in your hand. And he was like woo. He started thinking about it and he waited till the next day and what do you think happened the next day?

LANCE: He forgot about it.

BEN: Forgot about it.

TONY: Did you have to give them the five bucks?

BEN: No. I didn’t.

TONY: Sweet.

LANCE: My kids would have hit me up with a five I can tell you that

BEN: But it’s very interesting because, you know, trying to delay that gratification, one of the things we talked about was, how long has the 401k been around, do you remember?

TONY: I want to say ’87.

BEN: Yeah, you’re right on it. So it’s less than 40 years and so the way that we think about money really hasn’t been around that long. If you truly think about it, right? And so this book, I kept looking at, I go this guy’s lying, 40 years? Humans have been around, do you know, because we had to look this up about 6 million years. Do you know when humans started to really plan and in my opinion, planning is when they started to farm because they were thinking more about the future, like, hey, I do something now and it happens in the future; 12,000 years ago. And then 401K’s came 40 years ago, and from the information I received, was back in the 30s, when they started to have some pension plans. We all think that pension plans covered 100% of what you did when you retired, they were saying on average, it was 13% of your monthly amount. So your monthly amount you spent was covered by a pension. So people go pensions were back then it’s like not really, covered such a small amount. And real 401K is thinking forward for retirement is only been around for less than 40 years.

LANCE: So I think back in the no historian, but the government is how most people invested their money through retirement by buying Treasury bonds.

BEN: And treasury bonds are yielding.

LANCE: Now are then?

BEN: Back then fine. Now usually…

LANCE: Historically speaking, 10-year treasuries have yielded about the rate of inflation, 30 years about 2% more. So you’re breaking even but at least you have something.

TONY: Wait, I feel a conspiracy story coming out about central banks, but…

BEN: We’re giving that to you then.

TONY: We’ll leave that for a different recording.

BEN: Oh, what’s the book that does…

TONY: The radical Island?

BEN: Have you heard this? Lance?

LANCE: Yes.

BEN: You hate it or what? I don’t know.

TONY: It’s a bit conspiracy theories.

BEN: It is conspiracy, but it’s kind of, it’s just an interesting book.

LANCE: I’ve not read it but I’ve heard somebody talking about it.

BEN: Tony? You’ve heard Tony talking about it?

TONY: I can only listen to a little bit of it because I started getting, you know, hyperventilating but…

BEN: Mad, angry…

LANCE: I have a philosophy, as relates to my planning, and my communication with people. There’s no one right answer. There’s no right way or the wrong way to do things. Whatever it is, what’s most important, is have balance, right? Don’t try to take too big of a bite at the apple. Think is something you can handle. Don’t create B hags. Eldest, spacious goals are really hard to achieve. We bounce baby steps and create the habit and from there, let it grow.

BEN: So let’s say that again, because I think that’s so incredibly important to make sure that everybody knows. Everybody’s different. And there are trade-offs. Would you agree with that? There are trade-offs, it’s like, hey, get a nice car, or maybe not as nice. But that trade-off, will give me a little bit closer to my goal, right? And so as we talk to people, we don’t want them to think there’s a right and a wrong way, there’s a right way because your behavior needs to be more than likely better. But it’s not that you need to have $72 million when you retire. Everybody’s just a little bit different. And as Tony keeps saying, you got to stop moving the goalpost, right? It’s, hey, I want to retire with I don’t know, whatever the number is, $50,000 a year. But now I really want a big house, $75,000 a year, $100,000 a  year, and you got to stop moving that goalpost and get kind of your spending under control. Know what your money is. By the way, do you know which group of people actually knows their spending numbers better than any other? Is it Gen X, Y, Z or boomers?

LANCE: Oh, no, it was me but the younger they are the more they know it.

BEN: Really?

LANCE: I would say.

BEN: The data that I just pulled was just the opposite. Boomers about 46%.

LANCE: Well, that’s because they’re retiring.

BEN: Oh, no, that’s fine.

LANCE: They didn’t 10 years ago.

BEN: Yeah. But that’s what I mean. The younger the Gen Xers, I found out are 23%. So boomers are twice as much and then it goes to like 30…

LANCE: Educate me a little bit. Well, X, Y, Z, I don’t know the ages.

BEN: So the X, Y and Z are I think X is 6 to 24. And then it’s like 25 to 42 and then it’s like 45 to 57, 57 to 75…

TONY: Is it in percentage?

BEN: Those are actually…

TONY: Boomers stopped at ’64 or started ’64?

BEN: Started ’64 which means that they’re like 57ish?

LANCE: No, they’re 74.

TONY: No, no, that’s me. I’m the very cusp as it turned.

BEN: So it’s like 57 to 75, somewhere in there’s the boomer.

TONY: So it was it right after World War Two, right? Because that’s when everybody came home and had babies. What’s that?

BEN: Echo Boom. I don’t even know what the echo boom is.

TONY: Right after maybe. Is it like dead cat bounce?

LANCE: I don’t know. But I just think there’s so much more. There’s so much easier access to data now. And then I know that are getting better. I know more baby boomers than anyone else because they’re my clients, right? So I know that they’re 150 times more technologically adept than they were five years ago.

TONY: Because they all have grandchildren. They teach them how to push the buttons.

LANCE: The computer was intimidating, the iPhone is worse, or the iPhone or whatever, the smartphone is worth the effort. Before that it wasn’t.

BEN: Did you hear that? I think I came in and I shown him, hey I got an iPhone. They go, aren’t you a little bit young to have an iPhone? I’m like, ow that hurts, man. That’s your son. We need to take him out and beat him hard this weekend. But it’s just interesting to know that people understanding their spending, and you can understand why people little older know, they’re spending a lot better just because you know, they’re retired and they only have so much money, Social Security and some of their savings that they go through. But it’s pretty fascinating. So do you have any other tips for kids and families?

BEN: The one that my dad always said was don’t take wooden nickels.

BEN: And what does that mean?

TONY: I think back in the day somebody had wooden nickel? I don’t know. It’s a boomer thing right?

BEN: Yeah, there’s not even a group. What do you call it before, the older?

TONY: I think it was the greatest generation or something?

BEN: Goodman, I guess.

BEN: Anyway, sorry. Don’t take wooden nickels. I don’t know what that means.  I think it means they’re fake and don’t let people convince you that they’re real nickels.

LANCE: I think it has something to do that you could trade them for food at one point in time, and then they no longer could, they’re in a depression. But anyway, that’s beyond our scope today. So as question, I would say don’t make it so hard.

BEN: Don’t make so hard, yeah. Just spend less than your earn.

LANCE: Spend less than your earn, have a little bit set aside. And then avoid bad debt and that…

BEN: Go and tell us what bad debt is.

LANCE: Revolving credit.

BEN: Because…

LANCE: You’ll never pay it off. It’s so much more expensive. We’re gonna get into interests and how it compounds.

BEN: Yeah, we could tell interest. Interest is just really high for bad debt. right? And since it’s really high, it’s just very difficult to pay off.

LANCE: Yeah. And it’s all a depreciating asset.

BEN: It’s on something that doesn’t grow in value. So at the end of the year, credit cards, very tough, but the house generally grows.

LANCE: Well, the thing is, you have to live. So you pay for shelter. So that’s the value of a house. What it is that you have to pay for shelter. So…

TONY: It’s hard to pay for those with a credit card.

LANCE: Not for very long. Right.

TONY: And I just went to my bank and say, here’s my house payment.

LANCE: I’ve heard that advocated to have no debt, get that goal as soon as possible, blah, blah, blah. So I do have a couple more points but I was trying to stay in context. Avoid bad debts, know what you’re making, what you spend and try to find a difference, end up on the right side. And then get a little bit of something set aside. If you don’t want to get a checking account $500 together, give it to your parents and say, hey, this is just in case I need it because they’ll probably have it. Not all parents…

TONY: My dad would take it to a casino.

BEN: We’re not giving it to your dad.

TONY: We’re not giving it to dad.

LANCE: Once you get there, then you can start, you know, putting a little bit of investing in your budget, right?

BEN: Because one of the things we say is even though you don’t maybe know what you want in the future, if you look back on your past, there’s always something you wanted. So just remember that and save and you know, you’re gonna need it.

LANCE: You’ll be rewarded.

BEN: You’ll be rewarded. That’s great. I love that.

LANCE: There was a client, this is true statement. So I’m not going to tell you the dollar amount big client though. So we looked at their performance since inception, right? So that’s total rate of return from when they started. So we have the dot metadata they’ve contributed, the amount of dollars they’ve taken out, and then the amount of dollars that were still in there. So they took away what they spent, and took out from what they contributed. Added the earnings from their growth. 65% of the total balance was from the earnings. So let’s call it $10,000. They put $10,000, and they took $9000 out. The $1000 out there, $1000 the value of the portfolio is $8000. All of the rest is from the growth.

BEN: Just the growth. That’s so awesome.

LANCE: So you will be rewarded for your sacrifice, but it takes time. It’s not immediate gratification. And don’t let your emotions be your enemy when it comes to investing in growth.

BEN: That’s very true. Okay,

LANCE: I do have one passion about budgeting though.

BEN: Let’s do it. Give it to us.

LANCE: So I felt like we’re being preachy here.

BEN: Oh, we try not to be preachy, were you preachy?

LANCE: Well, I have a little different perspective. I think that we’re here to live our entire lives. And I have seen people be too frugal to the point where it ruin their life. And I have seen people be completely ignorant. And what’s the word I’m looking for?

TONY: Unfrugal?

LANCE: Unfrugal. Completely unworried about their future. So it’s a balance, right? So don’t let accumulating for later dominate you’re now. And particularly if it changes your relationship with your spouse, or your kids, or your family, or whatever. It’s not good if it’s over the top. Both ways. So I’ve always called that live well sleep well. So you need to put yourself in a position where you can sleep well, knowing you’re gonna be okay. But that doesn’t have to be the exclusion of living well, also.

BEN: So it sounds like you just really take the view that, hey, it’s simple, which is spend less than you make. You’re going to invest it, we’re assuming that’s going to happen. And don’t do it where you’re out of balance. Because life is about balance. And you can hurt a lot of you gonna hurt a lot of relationships and other things. If you don’t have that balance. Tony, is there anything you want to say before we say goodbye?

TONY: Well, I just want to understand the whole saving and compounding and so forth as it applies to golf.

LANCE: So don’t play golf with sandbaggers. That’s it.

BEN: Are you a bagger?

TONY: No, no. We have some people we know that are. So what you have to do is you just have to follow them closely and count all their strokes.

BEN: Oh, God. Oh, that doesn’t sound like a sandbagger, that sounded like a cheater.

TONY: Yeah. Okay. That’s right. That is a cheater. Sorry. We don’t have any of those where we play, do we?

LANCE: No. Cheaters never win.

BEN: And Winners never cheat.

LANCE: That’s right. Intentionally.

BEN: Intentionally.

TONY: Sometimes it’s not knowing the rules. The rules can be a little quirky.

BEN: Is that a foot wedge?

TONY: Oh, that’s a cheater.

BEN: That’s a cheater. Got you. Lance, was there anything else that you wanted to add?

LANCE: I don’t know. That’s good. Glad you’re doing this. That’s needed. I got asked to come into my oldest daughters for sophomore or junior. They call it home economics. So it used to be home economics was when we were at school. Yeah. How to, you know, do laundry, how to write a check. Everything that just be at home. Now it’s all about personal finance.

BEN: It is. Good.

LANCE: Yeah. So I went in there, I did a presentation. I thought I nailed it. I use my little stacks of bills that I’ve got, I never got invited back. I have three other kids and I didn’t want me.

TONY: Do they keep the stacks $100 so? I’ve still got some sitting in my basement. I snuck them out of his bag before he left. It’s called compounding interest.

BEN: Well, we put the whole thing together just because I really want to teach my kids and by forcing them to be part of the actual endeavor. I think they just kind of hear the different aspects of money and what they should be thinking about. I think one day they’re gonna wake up and be 25, 26 and go, I think we covered that one dad. So we have over 100 episodes now, which is pretty crazy. And, you know, it seems like it’s grown just a little bit more, more and more every day. And so we’re pretty excited about it. It’s compounding. It is, it is.

LANCE: Is it tax-deferred?

BEN: Is it tax-deferred? Yeah, we’ll make it tax-deferred.

LANCE: The only thing better than compound interest is tax-deferred compound.

BEN: Oh, yeah baby!

TONY: What about tax-free compound interest?

BEN: Hey, if you can pull that off, Amen.

TONY: Section 1202.

BEN: Isn’t throwing that 1202 around a lot? I keep going do you actually know what’s it?

TONY: No, but somebody said it and sounded smart and I love it because I can remember that number. And then there’s something called QOZ. I got to get into that.

BEN: You got to the QOZ. You already got that one down. But well, we really appreciate having you here. Thank you so much. We love you know, putting out some of that knowledge to individuals and some of your background and…

LANCE: Glad I could give you so much to edit out.

BEN: No, I think it won’t be anywhere close to some of our previous, right Tony?

TONY: My first one, I think out of an hour in 10 minutes or seven minutes usable. So you’re way, way beyond that.

BEN: So thanks for being here, Lance. And until next time, thanks for everyone joining us and we’ll talk to you on the next episode of Money with Mak and G.

LANCE: See you.f

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