Latest / The Steve Harvey Morning Show / Andrea L. Collins: Financial Consultant at Charles Schwab and Author of “A Word to the Wise”

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Andrea L. Collins: Financial Consultant at Charles Schwab and Author of “A Word to the Wise” · The Steve Harvey Morning Show

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  Speaker 1: My next guest is Andrea. Is Andrea Andrea and Andrea
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  Speaker 1: al Collins. Andrea has over fifteen years of experience in
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  Speaker 1: the investment management industry. She began her career at Mortgage
• 1:10
  Speaker 1: Stanley Wealth Management, where she specialized in portfolio management for
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  Speaker 1: high net work individual investors and foundation. She's active in
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  Speaker 1: the community and average supporter of the arts and frequently
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  Speaker 1: teaches financial literacy works out for schools and organizations. And
• 1:24
  Speaker 1: it's a proud member, oh Dell's the Sigma Table. About that?
• 1:29
  Speaker 1: About that, I'm a proud member of OMEGA. Side fire
• 1:31
  Speaker 1: about that? Please working the money making conversation Andrea al Collins.
• 1:38
  Speaker 1: You know, because Kamala Harrison become the VP elect. You know,
• 1:44
  Speaker 1: you know ak is getting all that love out that
• 1:45
  Speaker 1: because of God? Are you know it's Greek love though
• 1:49
  Speaker 1: it's all up anybody wants to recognize, you know, And
• 1:53
  Speaker 1: as he said, be black. That's what being That's what
• 1:56
  Speaker 1: being a fraternity members is really sow in the um
• 2:00
  Speaker 1: the roots of of where you come from, an uplifting metorio.
• 2:04
  Speaker 1: And so how important was it? You know, I know
• 2:06
  Speaker 1: it's in your resume and I I would tease a
• 2:07
  Speaker 1: little bit. I knew importance of what'll make a sif
• 2:10
  Speaker 1: I did for my career. I pledged while I was
• 2:13
  Speaker 1: in college, and I always tell people it altered my
• 2:15
  Speaker 1: whole thought processes for its goal setting because I was
• 2:18
  Speaker 1: just wondering around in college and was confused and then
• 2:20
  Speaker 1: I pledged and it gave me my first goal that
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  Speaker 1: I accomplished in life outside of graduating. How did it
• 2:26
  Speaker 1: affect your life? The Sigma Theater, You know, it had
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  Speaker 1: a huge impact on my life, and um even prior
• 2:33
  Speaker 1: to me pledging in college, because I, you know, pledged
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  Speaker 1: at Berkeley Kappa Chapter. And uh, when I think back
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  Speaker 1: to even my childhood growing up, the women that I
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  Speaker 1: watched in church. You know, we're members of Delta Sigma Theta,
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  Speaker 1: you know some of them were a k A s.
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  Speaker 1: And so just watching these women and how progressive they were,
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  Speaker 1: how involved in there and they were in our community,
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  Speaker 1: how professional know they were, and you know, the achievements
• 3:02
  Speaker 1: that they were able to make in the strikes that
• 3:03
  Speaker 1: they constantly made, not only personally but professionally, and then
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  Speaker 1: they had that outward exhibition of those successes and not
• 3:13
  Speaker 1: only successes, but struggles and you know, feats and obstacles
• 3:16
  Speaker 1: that they encountered as well. I think just the main
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  Speaker 1: impact that it had on meat growing up because it
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  Speaker 1: wasn't like I came from a family, you know what
• 3:24
  Speaker 1: I mean, or a legacy within my family, uh that
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  Speaker 1: were part of sororities and fraternities. But like I said,
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  Speaker 1: the women that I was able to uh watch growing up,
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  Speaker 1: whether it was in church or mentors organizations that I
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  Speaker 1: was involved in and did a lot of volunteer work.
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  Speaker 1: That example was sort of set before I got to college.
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  Speaker 1: And then when I got on the campus, of course,
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  Speaker 1: you know, it was just like loud and clear because
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  Speaker 1: at that point you're able to be a part of it,
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  Speaker 1: and you know what I mean, and you meet like
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  Speaker 1: minded people men and women are young adults that have
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  Speaker 1: the same goals in mind that basically are cut from
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  Speaker 1: the same cloth when it comes to like values, their goals.
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  Speaker 1: You know, who they are to their core and what
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  Speaker 1: their intentions and desires are, you know, for their families
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  Speaker 1: and the community at large. So yeah, very impactful. UH
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  Speaker 1: love my sorority sisters, you know. And you know because
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  Speaker 1: I I I graduated from University Houston, which is a
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  Speaker 1: predominant black, white campus, you know, thirty five thousand, and
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  Speaker 1: it's really funny because you know, if you're going you
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  Speaker 1: went to a school like me was a dominant white
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  Speaker 1: attendee exactly, and so you know, and you had the
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  Speaker 1: look core blacks, you know, they look like a lot album.
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  Speaker 1: Do you really say, you know, I think it was
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  Speaker 1: like maybe black students on campus tide, and it felt
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  Speaker 1: like it was ten thousand of us. And that experience
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  Speaker 1: to you, you know, to be honest with you, while
• 4:46
  Speaker 1: we were there and the Alphas had they had a
• 4:48
  Speaker 1: campaign represent campaign that still stands out in my mind
• 4:52
  Speaker 1: even though it was so many years ago, and I
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  Speaker 1: still have the T shirt to prove it. But we
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  Speaker 1: walk around loudly because because I mean, our statistics then
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  Speaker 1: less than two point three percent of the population, and
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  Speaker 1: like you're saying, it felt like so many of us,
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  Speaker 1: because we're just a dynamic force. When we congregate and
• 5:10
  Speaker 1: come together, it could be two five, you know, we're
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  Speaker 1: two or more are gathered. It's really that philosophy, I
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  Speaker 1: think in our community, and we're so dynamic and strong
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  Speaker 1: and you know, impactful when we do come together collectively
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  Speaker 1: that sometimes the force feels way greater than what we
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  Speaker 1: actually are representing in numbers. And I think that like
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  Speaker 1: that's the beauty, you know, of our community and what
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  Speaker 1: it's comprised of the ability that we have to have
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  Speaker 1: so much of an impact, you know what I mean,
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  Speaker 1: and create this dynamic force even with so many, so
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  Speaker 1: few of us, you know, representing in its particular space. Yeah,
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  Speaker 1: I knew we would relate to that with that whole
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  Speaker 1: idea of us, you know, said like it was so
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  Speaker 1: many of us, and then you realize when you look
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  Speaker 1: at the number, there's not many of us at all
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  Speaker 1: that many. You know, when I look back at the pictures,
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  Speaker 1: like it felt like there were so many, like you said,
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  Speaker 1: so many of us, but nevertheless the impact was just
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  Speaker 1: as great. Cary out the mission and you know, to
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  Speaker 1: be honest with your Kapa chapter is the tenth chapter
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  Speaker 1: out of our sorority to be founded in nineteen one.
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  Speaker 1: When I think about it, black women were on the
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  Speaker 1: campus of UC Berkeley, not just going to school, but
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  Speaker 1: formulating the chapter and the sororities in the early nineteen
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  Speaker 1: hundreds at an institution like that. So there's a lot
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  Speaker 1: of pride and in heritage that come along with them. Awesome. Well,
• 6:28
  Speaker 1: you know, we're in the middle of a pandemic. I say,
• 6:31
  Speaker 1: you know, we thought it was all gonna be short
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  Speaker 1: term and and then we talked about high unemployment, RAID,
• 6:36
  Speaker 1: we talked about we need a new stimulus check. And
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  Speaker 1: then Black Friday comes around and uh, it's nine billion
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  Speaker 1: dollars and the online sales, Uh, with Black Friday drop
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  Speaker 1: in in store traffic. We all knew that why that
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  Speaker 1: was gonna happen because pandemic and people start offering sales
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  Speaker 1: prior to the Black Friday day and been the most
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  Speaker 1: significant thing of that was the was that three point
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  Speaker 1: six billion that was tied to the smartphone. And so
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  Speaker 1: when I when I look at everybody's talking about, you know,
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  Speaker 1: we were having a down economy, the stock market crossed
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  Speaker 1: over thirty thousand, all these numbers, where is this money
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  Speaker 1: coming from? Ms Collins? Well, you know, to be honest
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  Speaker 1: with you, I think that it's a huge disparity, you
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  Speaker 1: know what I mean? And even in the information that
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  Speaker 1: we're given, because to be honest with you, in March,
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  Speaker 1: if we look at the statistic and we first entered
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  Speaker 1: into the pandemic, African Americans are blacks only participated or
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  Speaker 1: only about one point six percent of the corporate stocks
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  Speaker 1: in mutual funds that were held on the market, while
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  Speaker 1: white held or ninety percent of that value, which means
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  Speaker 1: that as a Black community, we weren't able to capitalize
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  Speaker 1: on that sometent some might gain of the SNP since March,
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  Speaker 1: you know. So that is a huge, I think component
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  Speaker 1: for us to pay attention to. Even when it comes
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  Speaker 1: to ownership wealth, the wealth gap that is also pervasive,
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  Speaker 1: you know, in that over time, even with income and
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  Speaker 1: education inequality decreasing, the wealth gap is perpetually rising amongst
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  Speaker 1: whites and blacks. And that's just really sad because of
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  Speaker 1: the fact that so basically you're saying very shard. Look,
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  Speaker 1: they are people out there that people who got money.
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  Speaker 1: Really they always got to keep money or they have money,
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  Speaker 1: and that's why you see their basically arise in Black
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  Speaker 1: Friday and then Cyber Monday. They're expecting to do ten
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  Speaker 1: billion to twelve billion dollars in online sales. We know
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  Speaker 1: that cyber money is online at least on Black Friday.
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  Speaker 1: That was right, right, you know, if we think so
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  Speaker 1: and so, which is really important for people to understand that.
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  Speaker 1: But I look at African Americans the technology game. You know,
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  Speaker 1: That's why I mentioned the fact that three point six
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  Speaker 1: billion of that was smartphones. Have we yet as a
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  Speaker 1: community starting to understand the value of what that smart
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  Speaker 1: phone really is besides take pictures and texting and talking
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  Speaker 1: on it. Right, I think that as a community we
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  Speaker 1: are we have the understanding of what the benefits and
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  Speaker 1: what we're how we we could capitalize on that market.
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  Speaker 1: But it's not all It's not about having the wealth
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  Speaker 1: or the knowledge that I mean we always have that
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  Speaker 1: we throw under quote knowledge is power, but I really
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  Speaker 1: believe knowledge is power, But it's not empowerment, you know
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  Speaker 1: what I mean. You can read all the books and
• 9:27
  Speaker 1: read all the articles, but if you're not empowered to
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  Speaker 1: be able to take on or or to be able
• 9:33
  Speaker 1: to take the opportunity within what's going on in a cycle,
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  Speaker 1: then it really is not going to have any sort
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  Speaker 1: of long term, sustainable, durable effect within our community. It's
• 9:44
  Speaker 1: not gonna be widespread. So we may understand on the
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  Speaker 1: surface what the impact of this technology sector is having
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  Speaker 1: on our lives and our society right now, but are
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  Speaker 1: we able to participate and partake in the benefits of
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  Speaker 1: that opportunity right now? And for me or my understanding
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  Speaker 1: of that, it's it's it's deeper than what's on the surface.
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  Speaker 1: You know, it's rooted in so many different, uh disparities
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  Speaker 1: you know that are systemic that Blacks long term or
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  Speaker 1: for really our existence within this country have not been
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  Speaker 1: able to partake in or at an equitable level that
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  Speaker 1: prevents us from being able to capitalize on certain opportunities
• 10:21
  Speaker 1: and certain mic market cycles. Well, you know that they
• 10:24
  Speaker 1: always always bring that up, because you know, whenever I
• 10:27
  Speaker 1: do an interview, you know, people are always talking about budgets.
• 10:29
  Speaker 1: You know, we were in the Fourth Court. We are
• 10:32
  Speaker 1: in the fourth Court about the close out this year.
• 10:34
  Speaker 1: The advice you know, you know I doubt vary says
• 10:37
  Speaker 1: if they pass a new stimulus package, and if they
• 10:40
  Speaker 1: don't pass a new stimulus package, you know you have
• 10:42
  Speaker 1: what you have, we have, the CDC say, and you
• 10:44
  Speaker 1: can delay the payment of the rent. Well, guess what
• 10:46
  Speaker 1: that delayed payment is due in January. You know the
• 10:49
  Speaker 1: holiday tax that Don't trump was was trumpeting. You know
• 10:53
  Speaker 1: that bill is going to be due by April one.
• 10:56
  Speaker 1: So you have all these delays. But right, how can
• 11:00
  Speaker 1: we overcome that and how we don't just wind up
• 11:01
  Speaker 1: filing bankruptcy which is unheard of we're used in the
• 11:05
  Speaker 1: black community. How do we get over that financial hump
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  Speaker 1: without help. Well, you know, to be honest with you,
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  Speaker 1: I really think that help is something that is a
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  Speaker 1: dire need within our community, you know, not just in
• 11:17
  Speaker 1: our community and our society period. And we know that
• 11:20
  Speaker 1: any sort of problem does not become a national crisis
• 11:25
  Speaker 1: until everyone is affected. You know, these same struggles, the
• 11:28
  Speaker 1: struggles that our nation is experiencing right now, Blacks have
• 11:32
  Speaker 1: been experiencing this, you know, for decades. So now that
• 11:36
  Speaker 1: it's become a national problem, of course there's national help
• 11:39
  Speaker 1: and national attention, and to some degree we will be
• 11:42
  Speaker 1: the benefactors of that. But it just it to me.
• 11:45
  Speaker 1: It just reiterates the importance of always having a plan
• 11:49
  Speaker 1: and being mindful of what your strategy is and and
• 11:53
  Speaker 1: positioning yourself to be able to take, you know, advantage
• 11:57
  Speaker 1: of opportunities. Because every market moves and side goals. The
• 12:00
  Speaker 1: housing market moves in cycles, education moves in cycles, the
• 12:04
  Speaker 1: stock market moves in cycles, and what goes up all
• 12:08
  Speaker 1: eventually comes down. You know that no one has a
• 12:10
  Speaker 1: personal ball of when that's going to happen. But for instance,
• 12:14
  Speaker 1: when the markets were at all time lows in March,
• 12:17
  Speaker 1: how many of us were able to were prepared to
• 12:20
  Speaker 1: be able to actually take advantage of those opportunities, you know,
• 12:23
  Speaker 1: to be able to buy things at such a low
• 12:26
  Speaker 1: or discounted rate so that it sets you up to
• 12:29
  Speaker 1: have more of a sustainable future. Things that resources that
• 12:32
  Speaker 1: that you're able to tap into in circumstances like this.
• 12:36
  Speaker 1: So yes, I definitely think that we're at a point
• 12:39
  Speaker 1: now where so many people do need aid and assistance
• 12:44
  Speaker 1: that there there really is no way around that. Absolutely.
• 12:47
  Speaker 1: And I'm talking to Andrea Collins. She has over fifteen
• 12:50
  Speaker 1: years of experience and the investment management industry. She began
• 12:53
  Speaker 1: her career mortgage Stanley Wealth Management. Um. You know stock,
• 12:58
  Speaker 1: that's I've been dabbling in stock, you know when I
• 13:02
  Speaker 1: first started. You know, they said, you know, by the
• 13:04
  Speaker 1: stock that you shop at. You know, if if you
• 13:06
  Speaker 1: go to home deep or a lot while your stocking
• 13:08
  Speaker 1: home Deep or you go you know, if you if
• 13:10
  Speaker 1: you buy Apple computer, buy your stock and Apple or
• 13:12
  Speaker 1: day or your body stock in dall, there have some
• 13:15
  Speaker 1: common sense um rules that once you do when it
• 13:19
  Speaker 1: comes to being a novice or entering into stop game
• 13:22
  Speaker 1: because of just planning on your experience, because of the
• 13:24
  Speaker 1: fact that that's what you do right. Right, I would
• 13:28
  Speaker 1: say for anyone that's just starting out or a novice investor,
• 13:31
  Speaker 1: the main thing that you need to make sure that
• 13:34
  Speaker 1: you pay attention to or incorporate into any sort of
• 13:38
  Speaker 1: investment plan, and many of us have heard this word before,
• 13:42
  Speaker 1: is diversification. There is no there, there's no full proof
• 13:46
  Speaker 1: method to investing. Of course, the riskier your investments are,
• 13:50
  Speaker 1: the more you put yourself at. You put yourself on
• 13:54
  Speaker 1: an opportunity for high gains but also very very low lows.
• 13:59
  Speaker 1: And so having diversification or a mixed basket basket of
• 14:05
  Speaker 1: assets basically hedges you against those risks and really prevents
• 14:10
  Speaker 1: you from losing everything that you've invested in one fails swoop.
• 14:13
  Speaker 1: So when I say diversification, I mean types of assets
• 14:17
  Speaker 1: that you own. You know, so whether it's real estate, stocks, bonds,
• 14:21
  Speaker 1: mutual funds, CDs, or money markets or any other sorts
• 14:25
  Speaker 1: of cash equivalents which right now, with interest rates being
• 14:28
  Speaker 1: at an all time low, you know, high investor checking
• 14:31
  Speaker 1: accounts or CDs, money markets are really not paying that
• 14:35
  Speaker 1: much nothing, nothing, And that's not the black community on
• 14:42
  Speaker 1: the community of color used to stash their money in
• 14:45
  Speaker 1: some type of account exactly. So there are you know,
• 14:48
  Speaker 1: there all are all cash equivalents or alternatives in an
• 14:52
  Speaker 1: environment like this, You know, so uh, you do loze
• 14:56
  Speaker 1: tapping into your resources. Of course, there's a boatload information
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  Speaker 1: You know, so the knowledge out there is endless. But
• 17:05
  Speaker 1: like I said, if you don't know what you don't know,
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  Speaker 1: you don't even know what questions to ask. You don't
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  Speaker 1: know where to begin. But that's the importance of professionals
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  Speaker 1: like myself in our space. I feel like we have
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  Speaker 1: a duty to disseminate that information amongst our communities, to
• 17:20
  Speaker 1: make sure that our our community is knowledgeable and abreast
• 17:24
  Speaker 1: of what their options are and what resources are available. So, yeah,
• 17:28
  Speaker 1: diversification is the main thing, making sure you're not heavily
• 17:32
  Speaker 1: uh allocated in one area over the other, so that
• 17:36
  Speaker 1: when you do experience the ups or downs in either
• 17:39
  Speaker 1: sector or asset class, it's able to sort of balance out.
• 17:43
  Speaker 1: We're kind of talking about this a little bit earlier,
• 17:44
  Speaker 1: how to you know, Like, you know, you hear all
• 17:46
  Speaker 1: the dire statements about the economy this year. You know,
• 17:50
  Speaker 1: first of were locked down for two months, and then
• 17:53
  Speaker 1: there was complaints at the six and dollar Care Act
• 17:56
  Speaker 1: check was really paying people more than what they had
• 17:58
  Speaker 1: made in it daily income, which is absolutely true. I
• 18:01
  Speaker 1: wanted to add to that, that is true. My daughter,
• 18:04
  Speaker 1: you know, she made like fifteen dollars subways. She could
• 18:06
  Speaker 1: have applied for the six hourly cares. We can walk
• 18:09
  Speaker 1: through the ten thousand, two hundred dollars that was the
• 18:11
  Speaker 1: total amount of payment. So I agree that that system
• 18:14
  Speaker 1: was broken, but it was it was processed in the
• 18:17
  Speaker 1: in the rushed moment in America needed it because we
• 18:20
  Speaker 1: shut down in the rush time in a dire time.
• 18:23
  Speaker 1: But we're always wonders to me, and you just kind
• 18:25
  Speaker 1: of say that earlier about you know, we always set
• 18:27
  Speaker 1: the records. I mean, I think it much of July,
• 18:29
  Speaker 1: you know, the stock market set a record. How could
• 18:32
  Speaker 1: that be when you have millions of people being unemployed
• 18:36
  Speaker 1: and then you have people filing for unemployment and then
• 18:40
  Speaker 1: the stock market is just dancing up and down like
• 18:42
  Speaker 1: it's everything's cool, right, Well, I think, you know, we
• 18:46
  Speaker 1: have to really realize that a huge part of what's
• 18:50
  Speaker 1: portrayed even in the median wealth within our country or
• 18:55
  Speaker 1: economy and mean wealth meaning the average wealth you know,
• 19:00
  Speaker 1: of the black investor or black American is about a
• 19:04
  Speaker 1: hundred forty two thousand, whereas the mean wealth of the
• 19:07
  Speaker 1: average white American is nine. So the huge disparity shows
• 19:14
  Speaker 1: the opportunity and who has the opportunity to partake in
• 19:17
  Speaker 1: those type of UH events or cycles. The money is
• 19:21
  Speaker 1: there there while there's a I mean, and we even
• 19:24
  Speaker 1: saw this how split the country is during this election.
• 19:30
  Speaker 1: There there's a huge part of our country that is suffering,
• 19:34
  Speaker 1: and then there's a huge part of our country that
• 19:36
  Speaker 1: has been had the ability or the capability to work
• 19:40
  Speaker 1: from home without a disruption and income, you know, work
• 19:43
  Speaker 1: from home and they still have access to the internet,
• 19:46
  Speaker 1: work from home, and they're still able to contribute to
• 19:48
  Speaker 1: the four oh one case. Fidelity put out a report
• 19:51
  Speaker 1: recently that so many of their four oh one K
• 19:55
  Speaker 1: plans or investors that they actually are the administrator for
• 19:58
  Speaker 1: have not not only cross the million dollar mark for
• 20:02
  Speaker 1: the first time in US history, hundreds of thousands of
• 20:05
  Speaker 1: four oh one k UH investors or plan holders that
• 20:09
  Speaker 1: Fidelity it serves as the administrator for UH, they've actually
• 20:13
  Speaker 1: crossed that million dollar mark. And you asked the question, like,
• 20:16
  Speaker 1: how is that possible in a country that's so divided,
• 20:19
  Speaker 1: where so many people are depending on government assistance, you know,
• 20:24
  Speaker 1: not only for their next meal, but for housing, for utilities,
• 20:30
  Speaker 1: and but yet most people, even though they have a
• 20:33
  Speaker 1: capability to tap into their poe one k without a
• 20:36
  Speaker 1: penalty this year, have not taken any loans or distributions,
• 20:39
  Speaker 1: or those that have has been very substantially low or
• 20:43
  Speaker 1: not exceeded what they actually really really need. So again,
• 20:45
  Speaker 1: to me, that just shows a huge economic disparity within
• 20:49
  Speaker 1: our within our country and even amongst the middle class.
• 20:53
  Speaker 1: Now a term I always get confused about financial literacy
• 20:58
  Speaker 1: when I do that is financial literacy. And I know
• 21:01
  Speaker 1: you involved in financial literacy, and how can a listener
• 21:05
  Speaker 1: educate themselves on being financial financially literate? Well, you know,
• 21:10
  Speaker 1: I think that when it comes to financial literacy, and yes,
• 21:13
  Speaker 1: you're right. I have taught many, many courses for organizations,
• 21:18
  Speaker 1: for for elementary schools, even for high school students, and
• 21:22
  Speaker 1: it never fails. With each class, I have more than
• 21:25
  Speaker 1: one student telling me how come no one ever taught
• 21:27
  Speaker 1: me this before? How come I didn't know this? Or
• 21:30
  Speaker 1: where can I find out more about this? And then
• 21:32
  Speaker 1: you have the few in the class that they're like, oh, yeah,
• 21:34
  Speaker 1: I have a stock portfolio or I know about this,
• 21:37
  Speaker 1: And it really has nothing to do with race. I'm
• 21:39
  Speaker 1: not gonna say one or the over the other, you
• 21:41
  Speaker 1: know what I mean, But some children are exposed but
• 21:44
  Speaker 1: for the most part, a lot of them are not
• 21:46
  Speaker 1: exposed to just the basics of financial literacy. How does
• 21:50
  Speaker 1: a bank account operate, you know, how do you pay bills?
• 21:54
  Speaker 1: How do you with some mortgage? How does lending work?
• 21:57
  Speaker 1: How does credit work? And then you get into the
• 21:59
  Speaker 1: more nuanced part of financial literacy, which comes to wealth
• 22:03
  Speaker 1: management or investing in the stock market, and how how
• 22:06
  Speaker 1: does that part of the economy work? Um, And I
• 22:10
  Speaker 1: think before you even move into that portion, just the
• 22:13
  Speaker 1: bare basis of managing finance, the practical application of what
• 22:17
  Speaker 1: it means to be responsible, to be a good steward
• 22:23
  Speaker 1: over what your resources are, how much ever your resources are,
• 22:26
  Speaker 1: to actually be a good steward and manager of what
• 22:29
  Speaker 1: you have. I think that's a huge thing that is lacking, um,
• 22:34
  Speaker 1: not only in the educational system, but within you know,
• 22:37
  Speaker 1: our families, and the transparency of that. You know, I've
• 22:40
  Speaker 1: been fortunate in my life economically and been able to
• 22:44
  Speaker 1: handle money correctly, but really, and I say this to
• 22:49
  Speaker 1: myself personally. I remember I was mentored by a gentleman
• 22:52
  Speaker 1: and he was just telling Ruchan, just put fifty a
• 22:54
  Speaker 1: month and that's all about I said, about years old
• 22:57
  Speaker 1: at the time, and So it really is if you
• 23:01
  Speaker 1: if you start early in life, start very early, you
• 23:04
  Speaker 1: can put up put these put aside small amounts that
• 23:07
  Speaker 1: would benefit you long term if you're consistent with those
• 23:10
  Speaker 1: small amount deposits, whether it's a hundred dollars a month
• 23:12
  Speaker 1: or fifty dollars a month, versus trying to catch up
• 23:15
  Speaker 1: when your forties and fifties. Talk about that that algorithm
• 23:19
  Speaker 1: of just you know, of the dollar calls averaging compounding,
• 23:22
  Speaker 1: right of how of how just a small contribution, uh
• 23:27
  Speaker 1: once it compounds over time. And I think that's the
• 23:30
  Speaker 1: part that many don't realize. Yes, there are people that
• 23:35
  Speaker 1: have large inheritances or they receive a trust fund, but
• 23:39
  Speaker 1: for the average American, it really just boils down to
• 23:43
  Speaker 1: time and work, you know, and in discipline, inconsistency and
• 23:50
  Speaker 1: doing having that discipline and consistency over time. Like you said,
• 23:54
  Speaker 1: such a small amount fifty dollars, if you were to
• 23:56
  Speaker 1: start that for a child or even you know how
• 23:59
  Speaker 1: Corey Booker will propose the baby bond where every child
• 24:02
  Speaker 1: born receives a thousand dollars at birth and by the
• 24:05
  Speaker 1: time they're eighteen it should compound into about fifty dollars
• 24:09
  Speaker 1: or so, which you know at eighteen years old, if
• 24:11
  Speaker 1: you have that access to that type of capital, what
• 24:15
  Speaker 1: can you do? You can go put a down payment
• 24:17
  Speaker 1: on a home. You know, the path to home ownership,
• 24:19
  Speaker 1: we know is a huge component of generating generational wealth,
• 24:23
  Speaker 1: you know, which so many in our community do not
• 24:26
  Speaker 1: have access to. So just starting with such a small
• 24:29
  Speaker 1: amount and allowing that amount to compound over time, I'm
• 24:32
  Speaker 1: not saying being an investor or a guru when it
• 24:36
  Speaker 1: comes to being the greatest latest stock picker. It's it's
• 24:39
  Speaker 1: more so about the longevity and your timezon horizon and
• 24:43
  Speaker 1: the ability to withstand certain market cycles and eventually you
• 24:47
  Speaker 1: will benefit from those games. Of course, there will be
• 24:50
  Speaker 1: ups and downs over that time longer time or rights,
• 24:54
  Speaker 1: and you give yourself you you have the ability to
• 24:57
  Speaker 1: to capitalize on those games. Because talk about the cultivation
• 25:01
  Speaker 1: of wealth, you know, that's the whole process. Because like
• 25:03
  Speaker 1: I said, you know, I look back at my life
• 25:06
  Speaker 1: and I went, man, shouldn't have pulled out there. I
• 25:08
  Speaker 1: can tell you I owned the Intel stock at one time,
• 25:11
  Speaker 1: I owned the home depost stock, owned the Apple stock.
• 25:14
  Speaker 1: I owned all that, you know, But I was I
• 25:16
  Speaker 1: was one of those guys who danced dance. Oh that's
• 25:18
  Speaker 1: that's moving fast, and I just didn't sit there. I remember, uh,
• 25:23
  Speaker 1: you know, birch Stock was twelve hundred dollars. I could
• 25:26
  Speaker 1: have that was like fifteen years ago and I could
• 25:28
  Speaker 1: have gotten in, but I went that stopped too high.
• 25:30
  Speaker 1: I'm about twenty dollar kmart stock. You know. So really
• 25:34
  Speaker 1: it's about knowledge and information and that's when it gets
• 25:36
  Speaker 1: you to you know, cultivating wealth with information and knowledge.
• 25:39
  Speaker 1: That's what this is all about, exactly. And then also
• 25:42
  Speaker 1: I think, um, you shouldn't have the pressure to put
• 25:47
  Speaker 1: you shouldn't put that pressure on yourself. You know, there
• 25:49
  Speaker 1: are profession Maria. I was one of those people, you know,
• 25:56
  Speaker 1: don't trust nobody but myself. Okay, but you much cultural
• 26:02
  Speaker 1: right right right, because we have to we know we
• 26:05
  Speaker 1: I'm probably with the vaccine right now because it's exact
• 26:08
  Speaker 1: and so so you're saying from from rush and stop
• 26:11
  Speaker 1: burden yourself. Create a relationship with an expert, and that's
• 26:14
  Speaker 1: who you are. You are an expert. Talk about yourself
• 26:16
  Speaker 1: exactly exactly. So you know that is one thing I
• 26:19
  Speaker 1: think you know that there's there's so many different paths
• 26:23
  Speaker 1: to lessening this wealth gap you know, between black and white.
• 26:28
  Speaker 1: And I hate to make it about black and white,
• 26:29
  Speaker 1: but really that's what it really is about, you know,
• 26:31
  Speaker 1: a huge part in this country. Um. But of course
• 26:35
  Speaker 1: there's policy and then there's there's a reform that can
• 26:39
  Speaker 1: help close that guy. And there's also cultural things that
• 26:42
  Speaker 1: we can do as a community. And one thing that
• 26:44
  Speaker 1: we are not we're not we're not really transparent when
• 26:48
  Speaker 1: it comes to find it, you know, within our within
• 26:51
  Speaker 1: our families, you know, amongst our friends, even amongst professionals.
• 26:55
  Speaker 1: There's there's always some wall or some barrier or something
• 26:58
  Speaker 1: that you don't want to fully disc flows. But oftentimes
• 27:01
  Speaker 1: it stifles us, you know, because we don't share the information.
• 27:05
  Speaker 1: You know, we're not transparent about what we know and
• 27:07
  Speaker 1: what we don't know, and it can be a hindrance
• 27:10
  Speaker 1: or services an obstacle to really really achieving because we
• 27:13
  Speaker 1: were not transparent about what our needs are or what
• 27:16
  Speaker 1: we have or what we like to achieve, you know.
• 27:18
  Speaker 1: So yeah, and the trust factor is huge within our
• 27:22
  Speaker 1: our community. So there are cultural barriers to the wealth
• 27:26
  Speaker 1: disparity as well. So with that being said, you know,
• 27:29
  Speaker 1: trust factor, knowledge, financial literacy, what really is stunting ability
• 27:35
  Speaker 1: to achieve wealth in the black community. What really, if
• 27:38
  Speaker 1: you have to put your finger on it, what is
• 27:40
  Speaker 1: really stopping us? You know, I it's such a dynamic
• 27:44
  Speaker 1: and wicked problem, so to speak, quote unquote, because if
• 27:48
  Speaker 1: you look at it systemically, you know, over time there
• 27:51
  Speaker 1: have been obstacles or barriers that have been put in
• 27:54
  Speaker 1: place for us to not be able to partake in
• 27:57
  Speaker 1: certain societal gains that basically enhanced the black middle class.
• 28:02
  Speaker 1: Like if you look at the beginning from the eighteen hundreds,
• 28:04
  Speaker 1: when freedman savings and loans collapse, then that is what
• 28:09
  Speaker 1: started our mistrust in the banking system when that collapsed.
• 28:13
  Speaker 1: And then the late eighteen hundreds, insurance companies had like
• 28:17
  Speaker 1: explicit discrimination when it came to policy, So any Blacks
• 28:20
  Speaker 1: that own an insurance policy, our policies were only worth
• 28:23
  Speaker 1: one third of what a white policy, white person's or
• 28:26
  Speaker 1: white Americans policy was worth. And of course in the
• 28:29
  Speaker 1: nineteen hundreds we know Black Wall Street, you know in
• 28:31
  Speaker 1: Tulsa and the destruction of that. And then in the
• 28:34
  Speaker 1: thirties there's red lighting, and then you go into the
• 28:37
  Speaker 1: disparities or with social security and how black domestic workers
• 28:42
  Speaker 1: and farm workers weren't able to qualify for Social Security,
• 28:45
  Speaker 1: and then you get into World World War two when
• 28:49
  Speaker 1: black veterans could not like explicitly take part in the
• 28:53
  Speaker 1: g I Bill. So like, there's been systemic things over
• 28:57
  Speaker 1: time or over hundreds of years, have perpetuated this divide,
• 29:02
  Speaker 1: you know. And then not to mention with all of
• 29:05
  Speaker 1: that happening, home ownership, like I said in the beginning
• 29:08
  Speaker 1: the conversation, is one of the major paths to wealth
• 29:12
  Speaker 1: preservation um inter generational wealth transfer across our entire nation.
• 29:19
  Speaker 1: So I think maybe in the beginning of twenty nineteen,
• 29:23
  Speaker 1: over seventy of white Americans owned a home, while less
• 29:26
  Speaker 1: than forty of Black Americans owned their actual home. So
• 29:30
  Speaker 1: home ownership in eradicating sort of like those type of
• 29:34
  Speaker 1: policies that have prevented us from being able to be
• 29:38
  Speaker 1: on a consistent path to home ownership, I think is
• 29:41
  Speaker 1: one of the hugest or most pervasive problems as far
• 29:44
  Speaker 1: as intergenerational wealth transfer. Not to mention income inequality, and
• 29:49
  Speaker 1: then the educational disparities and the pandemic really damage this
• 29:53
  Speaker 1: even more because it caused roughly of the black owned
• 29:57
  Speaker 1: businesses to close and exactrivating for real need, so which
• 30:00
  Speaker 1: it believes that when you go to a bank, they're
• 30:02
  Speaker 1: gonna look at you like when you had the PPP
• 30:05
  Speaker 1: out there. We were the last to get it or
• 30:06
  Speaker 1: didn't get it at all. So it's about race and
• 30:09
  Speaker 1: overcoming race. And I always tell people you overcome racism
• 30:12
  Speaker 1: by created relationships by going to a bank instead of
• 30:16
  Speaker 1: just cashing your check ship down with the loan officer.
• 30:19
  Speaker 1: Trust because people can, people can give you some things
• 30:23
  Speaker 1: and tell you, I advise you how you can slowly
• 30:25
  Speaker 1: grow into a loan building relationship. I'm not saying you're
• 30:28
  Speaker 1: gonna go in there and get you a hundred thousand
• 30:29
  Speaker 1: dollars off the time, but maybe get ten, pay back
• 30:33
  Speaker 1: that ten, then that becomes twenty. And I think that
• 30:35
  Speaker 1: people need to understand that growth happens over over a
• 30:39
  Speaker 1: period of time of time. Exactly. It takes time. It
• 30:42
  Speaker 1: takes time to cultivate relationships. It takes time to show
• 30:46
  Speaker 1: um your ability and your buy it. You know what
• 30:50
  Speaker 1: I mean. You're buying into the situation, You're buying into progress.
• 30:53
  Speaker 1: All of that takes time and cultivation and intentional cultivation. Well,
• 30:58
  Speaker 1: you know, Andrea, I want to appreciate you coming on
• 31:00
  Speaker 1: the show. You know, I can actually talk to you
• 31:03
  Speaker 1: for another thirty minutes because I really because you know,
• 31:06
  Speaker 1: you know, because you know, as much success as I
• 31:09
  Speaker 1: claim to have, I'm learning and that's important. And also
• 31:13
  Speaker 1: I'm willing to reveal my mistakes and I think that's
• 31:16
  Speaker 1: that's a gift that you have to be able to
• 31:18
  Speaker 1: allow me to set of being comfortably lay my head
• 31:21
  Speaker 1: on the college with Sean, what did you make the mistakes? Well,
• 31:24
  Speaker 1: when I was twenty four, I should listen to Paul
• 31:26
  Speaker 1: when he told me to deliver fifty dollars a month,
• 31:28
  Speaker 1: right right, right right, you know exactly and somebody else
• 31:34
  Speaker 1: have that history within our family, you know what I mean,
• 31:36
  Speaker 1: Like I'm in this industry, but a huge part of
• 31:40
  Speaker 1: my success or you know, progression is being transparent about
• 31:45
  Speaker 1: what you were taught and you know what I mean,
• 31:47
  Speaker 1: and what lessons you've learned along the way, the mistakes
• 31:50
  Speaker 1: that you've made, the things that have been passed down
• 31:52
  Speaker 1: mindsets when it comes to money and finance with in
• 31:56
  Speaker 1: my own family, you know, and addressing that type of
• 32:00
  Speaker 1: those types of conflicts, so and then moving past it. Cool. Well,
• 32:04
  Speaker 1: I want to thank you for coming on money Making
• 32:05
  Speaker 1: Conversations and college. What does the ale stand fund? Ale?
• 32:10
  Speaker 1: Let's Sean? Okay, sound like a Southern name, right there,
• 32:13
  Speaker 1: Las Shawn, right there? But no problem, Berkeley Grad doing
• 32:16
  Speaker 1: your thing. Please come back on Money Making Conversations. Thank
• 32:19
  Speaker 1: you most definitely okay. If you want to heed more
• 32:21
  Speaker 1: money making conversations, subscribe to money Making Conversation YouTube channel
• 32:26
  Speaker 1: or to my podcast. Also I'm syndicated again. Go to
• 32:29
  Speaker 1: money Making Conversation dot com if you want to hear
• 32:31
  Speaker 1: an interview as well. My name is R. Sean McDonald.
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