Funds: Back to Basics
For example, if I wanted to start investing, say, I came onto a contract and I got an extra ten thousand dollars this month and I want to be like, okay, I want to invest this ten thousand dollars, you would recommend investing like breaking that down, maybe monthly or quarterly yes, and putting a little bit here holding on to some may be in the savings account and a little more, yeah for a little bit so great cash management questions, so if you had a whole ten thousand dollars and wanted to invest it that's just me being a little bit conservative like you don't want to put it off because you're not going to do anything with it, but I might just do it over in stages ten thousand dollars isn't that much in the big picture, so I might just do five thousand now in five thousand and three months or, you know, there's the january fact which I learned in business school which the market does change in january there's also the market changes when earnings come out I mean there's so many facto...
rs there's, inflation, there's economic like you know what what's our army at war we not like, you know, things like that so that's we've no control over that it was just a more concern, it's just a more conservative way of making an investment, seeing how it's done in six months and then putting a little bit I think it's I don't actually consider it conservative I consider it prudent I look at it is that because and I've done this so I've made the mistake where I've invested money in the market dropped a week later so you're ten thousand dollars might be worth nine thousand because we had I mean, who could've predicted two thousand eight or two thousand one nobody had to imagine two thousand eight I did that I had gotten a big check for something I put it in the market it dropped you know I've gotten back I've diversified of asset allocator I'm doing what I should be doing but who can predict so I think if you're going to get if it's a big number for you, why not just split it up just so you're not timing the market and then if you see the market dropping you're like, okay, let me go on invested but that's a great question so if I just got ten thousand dollars let's, go back to the roots to the basics who I have enough of my rainy day fund, right? You know what kind of debts kind payoff let me put into short term and then I can put into the I r a and I'll invest that whether in stages or feel comfortable to do and won some and I talked about this sum with somebody else in terms of investing into my sup ira even though I can't necessarily figure out the total dollar amount until your end actually put a few hundred dollars in it every month because I do want to not have to deal with market timing and so if I know overall, maybe I put nine, ten, twelve thousand a year I'll still do two hundred dollars a month so it doesn't necessarily I'm not over funding it are making the mistake of putting in too much, but at least I'm not market timing and I'm able to take advantage of the fluctuations in the market over the year sniffles has a question about you yes, I love it I expect that we have a few more with old sniffle says I have a friend who was trying to sell me an annuity I mean my light thirties and not sure if this is a smart retirement option annuities oh, I could get in some hot water so an annuity is a and I'm going to talk a lot about life insurance but annuities essentially a life insurance products so I'll just talk more about the investment side we'll talk about the annuity, the life insurance part later so what does ingenuity and just look it up on, you know, by the way a great great website is invest opie, dea investor pt a dot com and it defines investment terms so they have their formal definition and then they have the layman's so you know, it's great, because the layman's is really in the everyday vernacular, so annuity literally means that you're getting paid every month or every year, so when you're new, it ties something, it means you're getting a payment so that's essentially the idea behind annuities that you invest money and then you start to get fixed payments. So you have what's called a fixed annuity and a variable annuity. So the way the fixed annuity works, it's, a great great product for older people, is usually have, say, one hundred thousand dollars you buy a fixed annuity, you lock in an interest rate, which today would be about two percent because that's, based on today's interest rates and then at a certain age, usually sixty, seventy years old, just making up the number. I don't know how it works. You get seven hundred dollars a month until you die, so that's called a fixed annuity so it's great for older people who have already saved a good amount of money and want that guarantee want that fixed income want that really security so they know that they'll pay for this product and then get a paycheck for the rest of their life. And so they can either get it for the rest there life until they die, they can get it until their spouse dies like there's. So many different variations and the what you get paid is really based on what you choose to sign up for that's a fixed annuity clearly this thirty year old does not need that variable annuity is the same idea except you're not locking in an interest rate. You're doing it based on a group of investments, so this two percent could be two percent. It could be ten percent, it could be fifteen percent. It could also be negative. So the thing about a variable annuity again is it's. Based on how the market's performing you are not aware of this here's, my big thing about variable annuities ask sniffles to ask there personal songs them how much it costs three percent a year on average is what it's going to cost them there's lots of guarantees, there's lots of bells and whistles. I don't doubt that I'm not paying three percent a year for anything that's me so it's a product it's complicated, it has its place, most people who are sold it don't need it and I I I will say that it is not for everybody and there are some people like I think if you are just a really great place about your rainy day fund you've got a great retirement account, your house is paid off and you're looking for another place to invest money because there are some tax different statuses for it that anybody can be a great thing or if you're a little bit older and you've already got your savings and you're looking to more just get like a monthly paycheck if you well, it could be a great tool as well, but it's the fees again, I keep coming back to feed because I think they just cut into our returns and we're just not aware of it. My husband was sold an annuity before he met me way started to look at the fees we was crazy, we're like you're paying three percent a year, so you think you're making ten percent, you're really making seven percent plus you also are locked in for seven to ten years, you know, there's there's just a lot of limitations on it it's kind of that first principle if you don't understand it, don't buy it initially, especially in that case. Okay, get on my soapbox here thinks it was around three percent size, you know, write funny, yeah, old world, any other questions before we that's just lots of women, so you just tell us when you're ready, you are there any general questions that weaken okay? Because I think the general questions a really good chance to kind of explain other topics are before we really get into, like, a state planning, right? How about I have dolly? If I already paid admin fees in october and transferred my fora one kato on ira, will the fees be pro rated? Um, I don't know what they mean by admin fears, so happy face I mean, I would suggest that it's so if they paid it it's it's, it's done I mean, there's nothing they could do about it, so I'm not sure how about precious metals? Can we talk about precious metals? Ryan in p s and I'm dying to find out galleys, opinion on precious metals? What are your thoughts on precious metals as an investment? I'm going to sound so boring, I'm saying the same thing. I'm a big fan of moderation, I loved precious metals, they did amazing when gold was doing great. Now they're doing terrible, so the whole idea is that it's moderations. So if you're going to have precious metals first, make sure you've got the four food groups and then have precious metals be five percent ten percent there's a kind of a rule of thumb that nothing in terms of a category or an individual stocks should be more than ten percent, so you shouldn't have one stock or one specific sector the large cap? I don't think really count, but you shouldn't have concentration of one thing more than ten percent, so there's, you know, I know not too many people are listening that have a four oh one k, but very often with you have a four oh one can if you work for a large company, you can invest in the stock of the company and what's interesting a lot of for one case, we actually default that if you don't pick choices, they'll just automatically, like I have clients to work for sony or viacom or or time warder, you know all great companies, but sometimes the foreign cable just default and buy the stock of the company, so you'll get a statement they'll say, wow, I have eighty percent of my four one k in the stock of the company that's crazy and there's a philosophy that if you work for the company, you should necessarily buy the stock because you're sort of work investment and your money, so you're not diversified it's just a philosophy I'm not saying I agree with it or not, but it's a theories, so in terms of precious metals, I love them, I definitely own them, they've taken a huge, huge head and it's probably five percent, so yeah currencies would be in the same so actually this this meet two currencies is the same so first what you are taking on currency risk when you're doing the international funds because they're buying them in us dollars but most of these companies are trading non u s dollars so you know and they have what's called a dui ours for company d r stands for but it's an international currency kind account blinking on a tr anyway it's it's an international currency depository receipt something like that s so think about it everything's in u s dollars here but on that international fund you're dealing with your own risk three great britain round the end what is the child of the yuan from china? I mean you're dealing with like all of that currency were so you're totally taking it on, which is good and bad and that's what you're paying these money managers their low fees so they can manage that buying something in like a specific international currency it's like anything I'd limited divide ten percent so it would be like after your four food groups yeah, yeah emerging markets yeah lava emerging markets absolutely. What I might do is within my international so say twenty percent of my portfolio's international I might do fifteen percent large and then five percent emerging markets now emerging markets is amazing there's I've a great mutual fund um that I bought at fidelity what's an independent company and I found her through which auctions show in a few minutes through fun selector that is just indian china I mean this is a rock star fund it's taken ahead but man, when it does well it does well, it's four stars it's under one percent and it's really volatile but it could only invest in india in china so I love it. I love that I'm investing that it's just a small percentage oh, great coffee cup press says galya I have retired for my day job as a librarian at a university and I'm a full time artist scylla preneurs now, thanks for all your help question I am lucky to have a pension toe live on now I want money to live life to the fullest what should I be thinking? Is you're talking about retirement savings? That's a great question. So, um, you know again in terms of let's, go back to what she means where he needs should missing library and so if they need five thousand dollars a month, forget about where the money's coming from let's really look at our spending plan and say, how much do I need? So if I need five thousand a month, is my pension getting me four thousand? Is it getting the three thousand the shortfall is what I'm going to need for my retirement, so let's just say her shortfall is two thousand dollars a month, that means they need let's just call it twenty five thousand dollars a year, so then we go to our retirement calculator here and you put in twenty five thousand a year, so she needs twenty five thousand a year she's sixty years old, she needs it right now, so this is how much he has to continue saving for it, you know, again, I'm just I just made up the number just to kind of give you so we didn't say how much he needs to live on it's really, the shortfall between what she needs to live on minus what she's getting is a pension it's really? I will say, my clients that are teachers or work for municipalities you can last till retirement it's a great pension way test on what we have that sluss brittany asks, how many years of retirement does the calculator can't a great, great krist, and I mean, I don't know that for a fact, but I I think I talked about the other day, I would say, you know, probably eighties mid eighties and we have one, I'll get one more question cause I know you want to keep rolling with this one is might resonate with a lot of people. J c s I have credit card debt but also money previously invested in mutual funds. Would you advise selling the mutual funds in order to pay off the credit card debt or should I keep it in the mutual fund since it forces me to say that's such a great question, you know what I'm going to say is moderation, I probably say sell some of it to pay off the debt, but if you look at the mutual funds, if it's in a retirement account, I'd probably don't touch it. But if it's in a non retirement account, I might say, well, what do your taxable gains potentially because if you're going to be hit with a lot of taxes, you have to take that into account. So in terms of looking at your taxes, if it's in a non retirement account, the question is, what was your cost? What did you buy the mutual fund for? And then what is it worth today? And so you would just look it up, and that difference is what you have to pay taxes on. So if you bought the mutual fund for ten thousand and today its worth fifteen thousand, you only have to pay taxes on five thousand dollars so it's not like you just paid taxes on fifteen only on five so, no, that number, this is a just a question about when you're when you're a freelancer and you have maybe a business of one or two. Um, you might have more money personally than your business has. And rather than reaching out for alone, can you purse recently, lin you're with interest. Yeah, you can. I mean, you want a good accountant who can help you structure that? Absolutely. Sure. Why not? You better pay yourself back. S o before we get onto some questions and because I know we're after we break, we're not going to be talking about investments too much unless we run out. So something that I just wanted to show to more sites is that I really like one is social funds. Dot com. This is a great sight because, you know, especially artists, a lot of people are really interested in what's called socially responsible investing. So this is social funds, dot com. And then I kind of got too a few pages to show you the fun performance. So this essentially lists every s r I fund out in the market. Um, and then what I did as I just sorted it by three year performance, so I like to go a little bit. Longer term performance like I don't want to look at the star that's just now. I like to look at things a little bit so you can see here this is three year so evan tied. Ariel part nasa. So ariel is kind of a fun political story. John rogers, I believe who's the manager is a huge obama friend. So he's just amazing. Amazing manny's african american he's minority just don't see that in this industry a lot. And he's a big obama fan. So he runs an amazing from its out of chicago. So that's, kind of a neat and you know how I know this? I just worked in the industry. That's partially. I just know the names I used to cover them, so I wish I could give you the biggest names in terms of sorry. Calver. Um was the calverton packs px here packs domine ease on here and it just as it is a feminine feminist woman. I love dominick because it's run by amy dominy, who was probably one of the first who started doing sorry, investing and she's out of new york. And she has the domine e index. So again, just like a really neat company and what a better way to vote with your dollars if that sense so again, go back to your four food groups, though this you find this you put the small cap in the small cap, you put the large cap in the large cab like you still have to keep your asset allocation, your diversification you're just choosing different funds and you can buy these funds a lot directly from the company or you can buy them at fidelity. Fidelity sells most of these, so you might pay an initial fee to buy it, but maybe I like having all my funds in one place, so I own an s r I fund and I might have paid an initial feet own it, but then I get all my funds in one place, so sort of my I I don't want to trash thumb I'm just going to quickly show, so look so you can go to individual companies and look up the funds, but I always go back to morning star because once you learn how to read morningstar, you just so here's the ticker for c a p x so what I'm gonna do is I'm just going to go to morningstar and look it up and morning star doesn't say that it's socially responsible, so you have to go okay, so ariel investor to three stars, no load, one point one three expense ratio again same mutual fund checklist this is a mid cap, so if I like this fun, I'm going to put this in my mid cap portion um, they do have their sort of like little commentary, but again you don't buy or sell it is his name on here year there's john rodgers, and then I look at just the returns again, I'm not going to compare to the s and p because this is a mid cap fund, not a large cap, but I'll look at the category, so this fund has done gosh really well, it's done three percent better than the category six percent, but in the category, so if you really want an s r, I find so you could probably get a small cap or mid cap fund for half the expense ratio, but then you think, but at least my money is going towards a manager that I support with my values, my ethics, not telling you to do it, but it's a way, and I went to a really great, socially impact investing seminar last year, just for I do a lot of angel investing in women owned businesses, and I do socially conscious it's my own personal business that I'm working on, and one of the things that brought up is that while these funds are a little more expensive in terms of the expense ratio, you know, I think calvert our load funds but you're like at least the money is potentially going toward the advocacy because a lot of the money so not judging that you should do it or not but if you really support the company and you can easily find out information on their website at least you feel like that money is going towards a company who support and believe in so that's just something to think about uh yield this point five eight well menses are s so this is the yield I don't ever look at that yield that's just like if they're paying dividends which a lot of growth type funds do not pay dividends because they're taking that money and put it in so you go right to performance so if you have this one for a year you would've gotten forty three percent if you had it for the last three years you go so they're not paying a dividend like an interest payment because they're putting it back in the company's because when you're so you want to look at not the yield I don't ever want to look at the yield unless it's a straight bond fund but yeah, if you're looking at dividend mutual funds, you might but I don't they usually take this into account so again these air small companies I've never heard of the other thing was socially responsible it's just it's it's not really put together so organized but what is their screening model like every sorry fund has a different screening process like is it you know the traditional no tobacco no guns or is it equality is a paying fair wages I have no idea that's do your homework social funds dot com there's obviously the big companies but every mutual fund has a different process so that's something I talked really fast talk about fun so you like my voice has gotten very like little so slow me down if you I get I think I just get so excited quick question the chat about morningstar ninety nine per center says morningstar ranks for two variables expenses and performance or is there something else sir there is it's a pretty complicated portfolio I just really simplified it. Yes absolutely thank you. Oh, those are the two main it's like going back to the checklist would I buy or sell a fun just based on morningstar no, not at all but doesn't meet my category am I okay with the fees what's the rating I'll tell you this if I see something with one or two stars it's out I definitely don't keep that okay so that's our aerial investors so what I just want to quickly show and this is a little complicated but somebody had asked about it last night they'd sent me an email and so I thought maybe someone out there is interested so morning, start again, I just googled this, I don't know it's a little bit hard to find they have a fun screener process. It is not always the answer, but someone came saying, how do I find new funds? So I've given you some suggestions and if you go back to originally, I said, you know, you could just go to vanguard and say, I'm just going to go to bangor and pick a large cap, small cap international bond fund or I'm going to go to finality and but again, finality sells ten thousand mutual funds they sell not ten thousand, but I think they're self for thousand of other people's posts, they have about five hundred or that can be overwhelming, like where do you find him? And I've given you some suggestions. You can ask your friends and learn, but how do you find new ones? So what? I thought, as you can do a fun screener and sometimes that whittles the list down very low. So here I wanted to look for an allocation fund, which is the one stop shopping, which is half bonds have stocks or portion, so I adjusted fund allocation. Morning star category moderate I'm not I don't care about the manager tenor not that I don't care about it but I'm not going to use it as a screening tool or filter I put minimum purchase for five hundred I'm going to change that because I'm afraid that's going to leave out a lot of really good funds um load funds no load expense ratio putting less than one percent c where we know what we're talking about right and you can put star so from the bad I'm only gonna do five stars maybe I'll do force stars you could also which I'm not is you could do I want the return better than the category average I sometimes I don't click that initially if my list is really long I might but right away just that I want cheap funds that are four, five stars in my category and then I hit the magic button this is where I feel like the wizard of oz um so here came up with one hundred funds so we've got american funds we have a black rock fund we've a columbia fund you know this is just me looking so if I see one so I can actually sort it by year two day return and then you could just kind of play around with it so here's the best one is the dodge and cox bounce this is a great company out of california actually based here in san francisco um so this is a print this page just to show it so see you here I found a balanced fund so this is a fine it's half a percent expense ratio no load um so it has twenty five percent bonds and the rest are stocks in u s stocks I'm just giving a shadow to dane emory she's to be my client and she's just a awesome woman who is in the finance industry and a sea of non many women so she's on there so here's her their holdings lot of banks names you know whatever that's agree with not agree with and then the growth where the again I'm going right to the category because I know it's doing well to five star fund I mean I'm sure I will look at that but if I'm just doing my thirty second quick look category last three years it's done five percent a year better than other mutual funds three percent so yes if I hold this fun for the last five years I did seventeen percent a year so how do you feel about seventeen percent a year, right? So is this is diversification in its example? So yes, the stock market five years you probably would have done twenty percent a year I'm not greedy, I'm I'm about security also about sleeping at night is your calculator somewhere too you see, for example, that's to say let's, go back to one thousand dollar example say put a thousand dollars into this fund and I got a seventeen percent return after a year that's an easy number obviously right? But is there a calculator that if you have, you know more like, you know, twelve, seventy five and you got, you know, return for sixteen point? I mean, I'm compiling on the cap bankrate camp linger smart money, which is the personal finance side of the wall street journal. Absolutely there's performance calculators absolutely. Frankly, I built an excel spreadsheet so that's easy. Yeah. If someone's got an xl, they could figure that out it's just cash flow essentially on and then you were also recommending that it's easier it's, more simple have all of your mutual funds and under one company so that you can have one statement. So is there sort of a statement that combines your total mutual fund? Well, stormin for so just, you know, there's not that that's that's er, you know, I don't want to endorse this company because I don't know that much about him, but there is a new company that's doing that called sigfig s I g f I g f anyone shouts out in the chat room that knows about it, so I I've been tracking them a little bit for the last six months I think that's what they dio so what you'll do is you'll put in your mutual fund and they'll say great fun but here's five others that are better and here's the performance and you'll get an email so I've logged I've um signed up is a user it's free and they'll say you earned seven percent this quarter you could have her nine percent so again I don't know that much about it so I could be talking about a site that I but it seems like that's what they're trying to do but that's it's so funny you bring that up because that's actually been one of my biggest beefs about investments is it's so hard to track performance and it's another reason I like mutual funds the performances here is pretty simple you're right and it gives a very basic number you know my mom actually which is kind of funny is when she started uh when I started helping her with investment she said I'm just going to do round numbers so she only did when she invest that she would really only do three thousand five hundred or she just had psychologically that way when I saw it go up or down I knew well I started at twenty five hundred twenty five thousand and it was just like an easy way for her to say I know how I've done and I love it. I thought that was a really, really great way to think about your investing, teo, just to kind of like quickly gates are you doing well or not? Um okay, so we went over social funds. We went over the funds selector. I'm trying to think, if there's anything else that I had put your oh, you know, vanguard, just somebody had asked me, and I thought this was just to show this website the reason I like the site is like, you know, the logistics of opening an account can be really daunting. So vanguard and I will say, I have a wonderful, wonderful klein who's in her seventies and vanguards customer service is not that great and very often shall literally pay me my hourly fee just to sit there on the phone. They will call the guard together so I can support her, and then there they've got limitations, but they're also like we're not charging you a lot. So they have one office it's in malvern, pennsylvania, whether based and I used to cover them and it's it's like a university, you drive up it's it's pretty surreal. Um, but this is really the site the page you go to if you want to open account of what I would suggest, so it was the forms tab so open this and call them at the same time so put on your little headset and call them and say I want to roll over and account I want to roll over I want to transfer and the literally walk you through it and so you could complete it online you can view it imprinted and they'll help you fill it out there pretty good like that fidelity has ten times more schwab ten times more but this is just the logistics of transferring accounts so if you're transferring your rolling over from any company just have your statement in front of you and you chances are you don't even need to contact your old company you can just go with the new one we have you know people have been sending in their retirement, you know, razes do you want to run a couple of things that we just retirement forecast numbers? Does anyone give us that? Are yeah, we do well, I think that's hanging white guy going around because callie gotta yeah let's do it cal agadir thirty says, here are my retirement numbers I am thirty eight I currently have a hundred thousand dollars saved in fora one k iras in three different retirement accounts that I will be rolling over into one listen from galilee e I save about seven hundred dollars a month and I would like to retire by sixty five and live off of seventy five thousand dollars a year so he wants to retire at sixty five and live on seventy five thousand a year correct so he needs to so I'm I probably made him a little conservative but if we keep that conservative he just needs to sign find another four hundred dollars a month well is that all that's it because it's so if you look at this and it says he needs to save eleven hundred a month he's already saving seven and that's what I find is that most of us are doing something I mean we got a lot of calls the first day or two of people who weren't but guess what look at all the calls were getting the chats were getting of people who are saving who and everybody I talk to around here I will say most people are like who didn't art have signed up I think one person I couldn't convince but I'm still working on her but here so maybe he can't say that extra four hundred I sure hope you can but if he can't then moved to two hundred I have that laura um laura is forty seven single night kids savings three thousand dollars she's got a minimal debt fifteen hundred dollars monthly income after texas for thousand okay so well this is different when we run it on that basis we'll weaken disciplinary so she's got dead of three thousand like I did no, I didn't know his savings of three thousand ok did is fifteen hundred, fifteen hundred income out the tax is four thousand ok thank you for sharing your income up attacks were already thinking that would be a better way she's thinking like a ceo and her fixed costs two thousand eight hundred so two thousand eight hundred okay, so that's that they're her bits and pieces and then she wants to retire independently at sixty k sixty says dad's eighty two and he's still working so you know she wants work as long as possible but that would be her thing and just while we're on it she also gives you a massive coal out thank you again for supporting the free lance is an artist demographic yeah okay, so realistically if she really wants to live on sixty thousand year and not work, she doesn't have in a lot of time as we can see here she needs to save two thousand dollars a month to really live on sixty thousand year what's going to be with her and I have a lot of clients like this. So laura, was that her name? No laura I mean thank you for sharing you know you're you're probably going to have to work for a while maybe when you're sixty five you can draw a little bit of income so here's an example is that so just to kind of show this example and by the way I think I'm jamari brought up an excellent point this calculator is not perfect it has complete limitations it's just a tool to say let me light some fire under my butt and save a little more see from a tracker or not so I just like it because it's so easy to use and visual but it has limitations so I just wanted to throw that after that this is not the only answer so for her to maybe claim work part time and do a little bit less she needs to find eight hundred dollars a month so that's her taking twenty five thousand and income from her savings so she needs to find a hundred a month her debt hopefully she can pay off fairly soon so if she has twelve hundred you know this is a classic case of stop using her credit cards really get herself to change her habits because she is earning fifty thousand dollars forty eight thousand dollars aft taxes so she's got a nice income so she might want to reduce the twenty, eight hundred so she could really find a little bit extra so say she gives yourself the one fifty a week so that means she has six hundred dollars so I'd probably do like three hundred to pay off debt you know, three hundred really towards retirement and savings just very roughly so this might be dead? Actually, probably do four hundred, two hundred really get that dead out of the way? So four hundred a month towards dead. So that means four hundred to the social hopefully be debt free in a very short period of time in for five months. But the two hundred towards savings and ira cut some of her expenses, so she confined the eight hundred a month, which is what she really needs to strive for to build up her retirement savings. She can get there. I really I feel confident about that. Why don't we do one more? And then we'll wrap up before break that'll be great. Okay, um and the y c says galya you you're great. I've heard you speak before and found the seminar on your blogged here are my stats age forty one personal savings, one hundred fifty two thousand total investments one hundred thousand no ira yet he's got two hundred fifty thousand saved. Nice only vanguard funds and tedy managed fund income for twenty thirteen, twenty seven thousand it's been a slow year. Um he's in a pretty good place. I mean, is that correct? Two hundred fifty two thousand so he doesn't know what I'm sorry, I know it's personal savings one fifty but he's got investments in a hundred right that's what I thought I added the too right yeah, so if I mean if he's living on twenty seven thousand he's fine, but he's probably wanting to live on mohr especially if you've seen one I see um so theoretically his calculator saying that his two hundred fifty two thousand will just grow and be enough to give him fifty thousand of income at this point, so if he wants more than fifty thousand of income, he does need to start saving, but he doesn't need to save a lot if he only wants to live on fifty thousand so that's the power of time two hundred fifty two thousand in twenty years could grow to give him fifty thousand of income, but again, if he wants more income, he'll have to save more. So if you're just starting to invest, start with an asset allocation fund or a target date fund, learn about your funds take this time you've all showed up for this course really? This has been such an investment in yourself keep the momentum and maybe that's your homework, maybe that's all you do from this course is you really sit down you look at morning star like I guarantee everybody that called or that chatted and sent you know about the person didn't realize they'd money in the money market, the person oppenheimer didn't realize her funds were doing or their funds somebody called in and said, wow, I'd like my fund. I'm really glad about that, so it's, not just bad news. Good news, too, rebounds your portfolio like I'm sure the money market had no idea they weren't learning anything. If you don't have investments, great, you're a blank slate and get started. You do not need to have money to start investing. Somebody said that is a comment yesterday or the day before. Start with a mutual fund for five hundred for a thousand you don't have that. Put that in a savings to save for that minimum of five hundred, pick a mutual fund for your ira, do not wait and continue to keep investing this part of your ongoing learning. Look how excited you are about today, just keep it going.