Episode #13 – 5 Money Mistakes to Avoid at All Costs

Welcome to the Millennial Money Moves Podcast. On this episode, Blake and I are talking about the top five money mistakes that we see our generation make that really hinder their ability to grow their wealth for themselves.
Accumulating wealth is difficult enough, so it’s really necessary to avoid these top five mistakes to make sure that you can set yourself up financially into the future.
This content is purely educational and does not tend to be financial advice or financial planning. Please consult your professional financial advisor or tax professional to receive tailored advice to your personal situation.
Babin Wealth Management is not responsible for action taken by listeners based on educational content provided. If you would like to receive personal financial advice, please reach out to Babin Wealth Management directly at babinwealth.com.
Let’s make moves. Welcome everybody to the Millennial Money Moves Podcast, the podcast where we’re breaking down all the financial stuff that matter to your real life. I’m your host, Sean Babin, Blake Bandani, the co-host.
Good to see you, buddy.
Let me hear it, Sean. Come on.
No, that’s all you. That’s your line.
The one and only, baby. Good to see you, as always.
How you been, man? How’s the week been so far?
It’s been good, man. Busy. Summertime in Arizona usually tends to cool off.
Pun intended. It gets hot business-wise, but I’m doing good, man. How about you?
Good, dude.
Yeah, we’re embracing the 100 degrees is coming our way quickly. So, I enjoyed these last couple of days of not being that hot.
So, it’s dry heat, Sean. It’s dry heat.
Dude, not with the rain. Anyway, so we could talk weather for a while. That’s what I want.
Small talk with the weather for too long.
You’re right.
Today, we’re talking about the five most common money mistakes that I think really hits our generation and people trying to accumulate their wealth and the traps that they might fall into thinking like, hey, this is a good idea or somebody told me
this was a good idea to start building wealth. And I really just wanted to bring these five different things to the forefront. There’s obviously a lot more, but you and I both thought these were the most important or the most pertinent.
Yeah, the most pertinent to kind of our generation, from friends that we’ve heard from that are maybe making some mistakes and things like that. So let’s dive into it, dude. I’ll start and then we’ll just kind of take turns going from there.
I like it.
Maybe even some of the more common things that you could be doing that you got to watch out for. So let’s get into it.
Yeah, man. I like it. I’m going to kind of piggyback off the last episode.
The first one, the first money mistake that I see time and time again is car payments, having too expensive of a car. I don’t know what it is about Americans and kind of just our desire to have fancy, bigger, nicer cars.
But when you start getting car payments over $700, that’s what I tell clients. If your car payments over $700 a month, that is an expensive car.
We really just need a car to get us from point A to point B, have air conditioning, a stereo to listen to, and some safety features. But we all start getting way too fancy. We all want the nicer things.
I mean, I’ve got friends that have $1,500, $1,700 car payments. And that’s great if you’re doing what we talked about, and savings-wise, in prior episodes.
If you’re saving that 12% to 15% of your gross income, and you’re just making a lot of money, and you can comfortably afford a $1,500 a month car payment, then great.
But it’s the people that will take the car payment over saving for themselves, or now that they have that big fancy car, they can’t put any money away monthly. And you’re just putting money every month into a depreciating asset. It’s ass backwards.
Also, a common mistake in a car payment is getting a loan that is over six years. It’s gotta be that five or six year is the sweet spot.
If you start doing the seven and eight year loan terms on a car, you are now handcuffed to a car that what, I think the stat is it loses like 20% of its value as soon as you drive it off the lot.
So you are not handcuffed to this thing for seven, eight years, just so you could afford the payment of something you probably shouldn’t have bought anyways.
Well, and these car salesmen are preying on people that want to feel like they are special in these expensive cars, and they are telling you, well, oh, it’s 700 your budget, we can make that happen.
So don’t just let the dollar value stop you either, but also really think about what that term and that loan is, because maybe they get you to 700 bucks a month, which is like, hey, Sean, I’m in that 700 bucks a month, but your loan is eight, nine,
ten years. How often does your car go a full year without needing to do some work on it? So now not only are you going to depreciate, what did you say, 20%, but you’re also going to probably still have to put money into your car to keep it going.
So you’re absolutely right. I think that’s a very common theme in our generation.
Yeah, I mean, I personally made the mistake, mid-20s, moved to Scottsdale. Every single person has a Ferrari and a Rolls, Range Rovers and Mercedes and Audis. And so I bought an Audi, used Audi.
But when you said about something going wrong with it, every time I took it in for an oil change, somebody was trying to charge me a thousand bucks or something. And it was the dumbest thing that I ever did.
Finance-wise, I was buying that car and financing it over. I think I had a six or seven year loan just so I could afford it and feel good about myself. But I know cars are expensive now.
It’s hard to get into a car probably for under 400 bucks, 500 bucks a month just because I feel like a car is $5,000 minimum. But we don’t have to buy brand new cars.
Again, have a car that gets you from point A to B, has the features, air conditioning, safety, heating, all that stuff that you just don’t need all the fancy topping things. I did a quick little math here.
If you went from a $700 car payment to a $400 car payment and saved the $300 difference for five years, and assuming the 8% rate of return, so if you invested basically the difference, you would have, five years later, $22,000 saved for yourself
versus a car that’s worth probably $22,000 less than it was when you bought it, and you’re just flushing money down the drain. Again, money mistake number one, having too expensive of a car.
And again, in my world, I tell anybody with a car payment over $700, that it’s too expensive.
And a couple of things too. I mean, from what Jamie, shout out Slim Jim, said, you know, a lot of times he has to disqualify people on their home purchases because their debt to income is too high.
And the number one common theme was their car payments are just outrageous. So it’s more than just savings. It’s also, if you’re still trying to do other parts of your life, especially buying a home, it could really, really hinder you, right?
Dude, I looked it up after that conversation because I was curious, like, how much of a car payment reduces your buying power for a house.
Yeah.
If you have a $700 a month car payment, that reduces your purchasing power for a house by $100,000.
Crazy.
And I will say just firsthand, moving back to Arizona, I had to get my wife a car.
And I used to kind of steer away from doing a lease versus a purchase just because I always like the idea, like, eventually you don’t have a car payment and you own it, which sounds great. And it doesn’t always work out that way.
But I talked to a buddy, he’s been in the car business forever. He’s like, well, what are you trying to do? I said, well, we don’t need anything fancy.
As you said earlier, A to B. He goes, go look up some lease deals online. And I kid you not, we found a Hyundai Elantra 20, whatever it is now, 20, 25, our car payment for three years for the lease.
Everything included mileage, oil changes, you name it, $300 a month.
Nailed it, bro. Like, that’s insane. And people won’t take that.
For whatever reason, we all feel like we need to be seen in something. No one gives a shit what car you’re driving. When that guy in the Ferrari rolls up next to me, I don’t picture myself in that car bank.
Man, I really wish I could have that. It’s just like, good on you, man.
Exactly.
It’s so funny. And dude, most people drive alone in their cars. I would say, it’s just for you.
This car is just for you. Maybe you got a family and you need the room. Great.
But I would say for 80% of the country, the car is just them by themselves, driving, listening to a podcast, music, and just they’re getting from A to B. That’s it.
And you know what though, if it makes you enjoy your life more than being that fancy car, we’re not stopping you either, but the ultimate keys, don’t let that facade hinder your ability to have a successful retirement just because you wanted to feel
better. Now, if you can afford it, great. Keep it up. Hey, hats off.
Congrats. But the traditional person cannot, and they just want to live outside their means, which again, translates to so many other avenues that can hinder you down the road.
Exactly. Yeah. It’s wanting more than what you need.
It’s a need, or it’s a want versus a need, and then you’re setting yourself back.
Like I said, if you’re maxing out your 401Ks, maxing out your IRAs, and you’re in a great spot financially, and then on top of that, you can afford a $1,000 a month car payment, great. Then this conversation, this isn’t exactly for you.
It’s the people who are doing 4% or 5% to their 401Ks because that’s what their company does. They’re not doing anything else, saving for themselves.
And they have an $800 car payment and a fancy car in their driveway, but they have nothing saved in the bank or in their investment.
So that’s the money mistake because again, you’ll be eight years behind the curve, and that sets you back so much drastically. Again, just do the math.
If you cut your car payment in half and save that difference and assume like an 8% rate of return, how much more would you have for yourself over the course of that long?
And then that’s 22,000 in your example. If you continue to, maybe you stop saving, but you were able to shave the difference, that 22,000 in another 10, 15, 20 years is only going to be exponentially more as well. So you’re absolutely right.
I think it’s a big money mistake a lot of our generation does.
Agreed.
All right.
Second one, credit cards.
I think the thing I see is when people want to get these credit card sign up bonuses, it’s like, hey, spend 10,000 bucks or 5,000 bucks in the first three months, and then we’ll give you 100,000 airline miles or three nights stay at Marriott,
whatever the case might be. So they go start spending maybe probably more than they need to hit this bonus and then they don’t have a plan to pay that off.
And so let’s say it’s a $10,000 in three months is what you got to get to hit some kind of fun incentive and you can only pay half that back. So you got $5,000 left on this balance that’s not accruing interest.
25% annual.
Yeah, dude. The average credit card interest rate is 22%. That if you have $5,000, that’s not a ton of money on a credit card at 22%.
The annual interest is $1,100. That’s crazy.
But I would say though, you know, empathetic or sympathetic, you know, I always talk to my wife about the difference, but I got my first credit card right out of school. I had my job. I felt good.
And luckily, the credit card company gave me a $1,000 max. But how fast did I max out that $1,000? And what happens is I tried to tell myself, and even my best financial advisor, aka my mom, was like, this is not real money.
Don’t assume you own this, right? You don’t have this money. Did I listen?
Of course not. But it’s absolutely true. You get that first credit card, and you just start swiping.
You’re like, well, I can pay for this.
Well, if you don’t have that money, it’s not fake money.
You’re gonna have to pay that back. And if you didn’t have it originally, you’re just putting yourself in a bad spot.
Yeah, I love how we run our finances. Everything goes on a credit card. Everything gets paid off every month.
Which is key.
That’s the key.
We don’t use it for emergency situations, though, or we don’t do it to get some kind of carrot, like an airline perk, or a hotel’s perk, or some kind of travel perk. And that’s exactly what the credit card company wants you to do.
That’s why they incentivize you to…
They put that carrot out there of, you know, 100,000 airline miles, but you got to spend X, because they know that the chances of people signing up for this not being able to pay that $10,000 off in three months is the reason why they do this.
Like, they’re not stupid. Like, they’re going to make their interests on the back end, and they’ll make more than what that plane ticket or that 100,000 airline miles cost to the company. So, these companies aren’t stupid.
They know what they’re doing. If you fall for it, if you have the money, great. Different conversation, but do not go spending money on credit cards that you don’t have because you find yourself in a very steep situation with huge interest rates.
And if you get in the hole, you don’t necessarily need to sit down with Sean, but it would still help out.
But don’t feel good about a minimum payment. That doesn’t do anything for you because that interest is going to just eat up that minimum payment.
So you never actually paid down the principle at any point, if you’re just doing minimum payments, just so you can open back up to use it again. So it’s a trap. What do they always say?
If it’s too good to be true, it’s probably not true. That’s a fact with credit cards. They’re not as good as they sound.
You gotta be responsible.
No, it is nice using somebody else’s money through the course of the month and then paying it off. But if you’re using somebody else’s money and then needing to use somebody else’s money to pay that person’s money back, and then we got problems.
And that’s what people fall into. In the case of credit cards and also in emergency situations.
Now, granted, if you can get that 0% interest for a year or 15 months or 18 months, whatever your case might be, and your AC goes out, and that’s the one thing you got to put on it, then, okay, well, now we have a problem.
And now you have to come up with a very big game plan to pay this thing off before that 0% interest runs out, because you got to get it done. We could dive into that a little bit further.
But yeah, credit cards, mistake number two, because I see a lot of people fall for those welcome bonuses, like intro bonuses. So yeah, don’t fall for that unless you got the cash, because if you don’t, that’s the whole point of credit cards.
They love you when you don’t have it, because now you’re tethered to them, and you’re going to be paying the fees to be a part of that.
All right, on the same kind of line, mistake number three that I see a lot of people kind of fall for are personal loans.
You know, again, typically people who run up into a bad situation, like an AC or a medical bill or something with their car, and they don’t have the cash, they go to the bank, they get a personal loan.
And personal loans are interesting because it’s not a line of credit. Like, let’s say you get approved for $10,000 loan.
Well, they give you that loan, the full amount, whether you need the $10,000 or not, and you take it, well, now that whole thing is earning interest. And let’s say you only need it $8,000. Well, now you got $2,000 that you really don’t need.
Anyways, that is now earning interest. So again, personal loans are huge interest rates. I think the average is about 25%.
They go up to as high as 35%. That’s what I was kind of seeing in my research. And that’s just, you’re screwed now.
Like, if you can’t pay that back as soon as possible, that’s an enormous interest rate and kind of handcuffs to you.
And on the flip side, I never like to throw this out there because I’m just not a fan of it.
But if you’re in that squeeze or in that tight situation and you do have a, you’re working for a company that has the FK plan, there are abilities to use your savings to help cover these without having to pay a bank interest, right?
You can take a loan sometimes if your plan allows for it. Now, you still have to pay that loan back through your payroll deductions, but at least the interest is really just covering the market loss when you took that money out.
So, I would say if you are in a pinch maybe and you have a 401k plan, maybe that’s an option as well.
Not to say you should ever take a loan out of your 401k, save that for your retirement, but I would say that’s better than paying a bank interest on the $10,000 personal loan.
100%. Because in the 401k, you’re maybe giving up, let’s call it 10% growth, just like historical average. So, that’s what you’d be forgoing if you took 30 grand out of your 401k.
That’s a fun fact too. The max you can take out of a 401k is $50,000.
Look at this guy. Attaboy.
So, some people are like, wait, what? That’s pretty small. And I’m like, well, why do you need $50,000?
But anyways, for the listeners out there, it’s half of your balance. But once your balance gets over, it’s got to be over a certain amount, then the max you can take is $50,000.
Hypothetically, if you were able to get a $50,000 loan out of your 401k, you would need at least $100,000 in your balance. That’s fully vested to even get to that maximum.
Exactly. So yeah, I think that’s a better solution than a personal loan. But personal loan, I don’t know why.
People just think of quick cash, and then they go to their bank, they get one, then they use it for a remodel or use it for whatever the case might be. Then they have to pay back so much.
And what kills me about a personal loan too is, let’s say you only need that loan for a month or two, but it’s a year loan or a five-year loan or whatever the case might be on your terms. They charge you an early payoff fee.
They charge you money to pay them back earlier than they expected. So be wary of that.
Well, what about this, Sean? Like, into the earlier point, one with car loans.
Well, if you are able to think about this and maybe go in and get a different car, lower your payment to 300 bucks, obviously you can put it in to the market, but you could also put that extra 300 bucks you were already paying into an emergency
savings account. So you don’t need these loans and you start building this little emergency savings account as well. So there’s ways to do it. Exactly.
You know?
That’s part of the financial planning process. Emergency savings is the first thing that every one of my clients has to have. It’s how much cash you have.
You have none? Okay. Well, maybe we need to consider reducing your 401k contributions and taking, you know, let’s say you’re doing 500 bucks of paycheck.
Well, now let’s do 200, and the 300 is going to go into a savings account until we get you some kind of nest egg that we’re both comfortable with because you need to have that cash knock.
We all know life happens. There’s the stuff you can’t expect, you know, the unexpected. So I agree.
Exactly what it’s for.
All right. So mistake number three, personal loans. Mistake number four, whole life insurance.
Holy smokes, man. I think everybody I would imagine knows somebody who went to work for Northwest Mutual after college, and they all got trained on the fact that a whole life insurance is a great way for you to one, protect you for whatever reason.
You know, you’re 22 years old. Why do you need life insurance? Hey, they’ll sell you on it.
Well, they get a good payout, but keep going.
And also build some kind of savings account.
Their whole life insurance is sometimes sold to people as the savings interest or tax-free savings account. And it’s because how whole life works is, let’s say the insurance costs 50 bucks a month for your coverage.
Well, a whole life insurance policy will charge you 100 bucks a month, and they’ll take the 50, and they’ll apply it to the actual life insurance part.
And then they’ll take the $50 that you’re paying extra and put it into kind of like a savings account or what they call cash value account that can get invested, can grow, and then you can access it tax-free as a loan, kind of like your 401k.
But the loan reduces your death benefit if you were to ever die. And then if you cancel your policy, let’s say you put 10 grand into the cash value, and when you canceled your policy, it’s worth 20 grand. Well, that growth is all taxable to you.
So, and I don’t understand. Yeah, I just didn’t, I never understood. The amount of prospects that have come to me and said, hey, I’ve got this whole life policy with Northwest Mutual, and I don’t know why it was sold to me as a savings account.
It’s asked backwards. That’s not a way to accumulate wealth.
I tell everybody, you should pay as little amount for the proper amount of insurance coverage, and then the rest of your money, you know, whatever’s left, we should be doing other things, like maximizing your 401Ks, maximizing IRAs, putting money
into a high-yield savings account just to get your cash, your emergency savings in a great place. So the whole life trick, not sure where it comes from, other than the fact that they’ve got a good sales of, you know, a good army of salespeople.
I’m sure, have you come across people kind of in that same mindset or kind of seen that with any of your buddies?
Yeah, I mean, we all have those friends that did take on that gig and called our friends first, right? We’ve all been poached.
They come to every college campus and they just post up and they’re like, hey, you want to be in a finance industry? Come join us.
And then honestly, not till I got into the 401k and got my securities license, did I not realize that, to your point, like, don’t overpay for insurance, right?
There’s term policies that will cover the need for whatever you may be worried about if you’re not around to keep making an income, right? And protect your loved ones. You don’t need to pay a lot for that.
And then they sell you, well, we can cover that. And then we can still get you some returns and get this cash value. Well, I don’t know, maybe the whole life is a little different than like a fixed rate.
But typically, the insurance company kind of sells you on a guaranteed rate in these whole life as well, right? Like, hey, no matter what, we’re going to be able to return X percent every year on your money. Is that fair?
Right?
That’s the annuity.
Oh, I jumped.
Okay. You jumped the gun.
The whole life you still get the market return?
Whole life, whole life, you can invest it. They have sub accounts or sub managers that you can put it into like a mutual fund kind of.
So you still get the market uptick. You don’t get the guarantee from the insurance. I thought they only…
Correct.
So, but still like to your point, I mean, why did you need that in the first place?
Well, what are you trying to do with that whole life policy? Right? That’s the real question.
Other than just trusting your friend.
Why overpay for insurance so you can take a loan against yourself later on down the line? You know, there’s a reason for whole life in certain situations, but I just, it’s not a way…
These money mistakes are hindering people who want to grow their wealth, generate wealth. A whole life policy is not how you do that. It’s not how you make sufficient assets or grow assets.
Once you have assets, a whole life policy might be worthwhile.
But anyways, this is for the conversation of, hey, make sure you don’t fall into these traps in your 20s and 30s and 40s, because those are the earning years where we need to really accelerate your growth. So that’s kind of what I see.
Well, to your point too, like I’d love to look at, like you set it up when you were 20 and you’re giving them 100 bucks, 50 for the death benefit, 50 for the market. Well, let’s say you kept that around for 20 years.
What would have 100 dollars just right into the market look like in 20 years versus getting this death benefit and only giving 50 dollars to your retirement account?
Yeah, and it’s only tax-free if you use it as a loan, meaning you have to give the money back, whether at your death or just throughout the year. So if you took 10 grand out of it and you needed it, and then a year later, you put it back, great.
Took 10 grand out of it, passed away, well, then it reduces your death benefit by 10 grand. Took 10 grand out of it, and then you cancel the policy, well, it could potentially all be taxable to you.
So I’d rather have people putting that money into a Roth IRA. So pay for the term policy, get coverage for exactly what you need. Young family, got a mortgage, you need that kind of coverage in case loss of income.
And then the rest, okay, it was gonna be 100 bucks a month, now it’s only 50. Well, let’s take 50 bucks a month, then that should be going to your Roth IRA. That’s tax-free growth comes out tax-free.
I love it.
So yeah, it’s just not an efficient way to grow your Roth.
All right, money mistake number five. Kind of along the same terms, Blake jumped the gun.
I apologize. I got excited.
I like where your head was at there. Yeah, you didn’t even know it was another. Is purchasing an annuity.
So annuity is an insurance product. It comes from the large insurance carriers. It’s a very complicated product.
I’m not gonna get too into the weeds with it.
There’s fixed annuities, there’s variable annuities, and invariable annuities are the ones that talk about guaranteed growth, or we can guarantee that when the market’s down, we can guarantee some kind of income for life.
Fixed annuities are more like, we’ll give you 7% for the next five years, but a lot of times people get trapped in this variable annuity conversation because it sounds great.
It sounds like, hey, you’re gonna get to participate in the stock market, so your money will grow. And then in down years, when the market’s down, well, you’re not gonna be down. We’re gonna give you 3% or 5% or whatever the case might be.
And you’re like, wait, like this is a win-win situation. But behind the scenes, these annuity companies, insurance companies, they know what the hell they’re doing.
I think it goes like pharmaceutical companies and then insurance companies with the people who have the most money in this country. So like they’re smart. They know that guarantees sound great.
You’ll pay for it. And then behind the scenes, they’ve rigged the game in their favor. So again, not a great place to grow your wealth.
There are times where I think an annuity fits, and we’ll talk about that when we do a whole segment on annuities, but you’re trying to grow your wealth, become wealthy. An annuity is not the way to do so.
So like, for example, annuities can have participation rates where they’ll say, hey, we’ll give you 80% participation rate in the stock market. So let’s say the stock market went up 10% that year. Well, you’re only getting 8%.
The annuity company is keeping the 2% difference. There’s also what’s called a cap rate where they’ll say, hey, you can make up to 10%. Anything over that, we’re keeping.
Like last year, for example, the stock market, if we’re looking at the S&P 500, returned 24%. So if your cap rate was 10%, you got that 10%. But the insurance company just pocketed 14% off your investments.
And just so you can have some kind of peace of mind when the stock market’s down, you can tell yourself, well, I’m still up. Well, you just gave up a 14% rate of return in an up year. That is huge.
And newsflash, Sean, if you work with someone like you, you’re ready to protect them on those down markets anyways.
So you don’t need the guarantee. You just need a good advisor to be ready for that, right? And I’m not saying you can guarantee anything in a down market, but you’re still going to hopefully give them the best of both worlds.
Get them the max return when the market’s up, and then watch the downside risk as well with a solid balance portfolio, right?
Yeah. I mean, you don’t get both of it. You can’t have the max and the best return in the lowest drawdown.
That’s just lucky if that happens. But what you do do is you coach your clients through down markets. Down markets happen.
We just saw it this year, the tariffs thing. They happened. It happened fast, but hey, it didn’t last long.
Everybody’s accounts are back to positive. If I would imagine for most people, their accounts are back to positive for the year.
So that’s what we do is we coach people through these events that, yes, stocks can go down, yes, crashes can happen, and yes, recessions can happen, but they don’t last long, and stocks continue to go up. And I’ll share the screen.
Like this is the reason why these insurance companies are comfortable to doing this for you, meaning, hey, we’ll guarantee your money in a down market.
We’ll give you 5%, 7% in down market, and then we’ll cap your upside and up markets because look at these numbers. And so, this is the S&P total return between 1928 to 2022, and it’s looking at any one-year period, three-year period, five years.
So, no matter how you want to slice it, from January 5th to January 5th, January 6th to January 6th, whatever, all these different time periods, however you want to slice it, look at the stock market’s percent positive over a five-year period is 89%.
Ten years, 94%. Twenty-year period and thirty-year period, it’s 100% positive, no matter what thirty-year or twenty-year period you’re looking at.
Crazy.
This is why they’re willing to offer you seven or five percent in the down year, but they will clap your upside, because they know they’re going to make that, the market will be positive more times than not, and they’re going to make a lot more money
And as we know with insurance companies, myself working for one, insurance companies don’t lose.
No, they don’t lose.
They don’t lose. So if you’re out there and you have an annuity, and you’re in your 20s, 30s, and 40s, ask yourself why. How did it get sold to you?
Why are you owning it? And talk to a fiduciary, somebody like myself about your options with it. Don’t go talk to the insurance company.
They can just sell you something else.
More insurance.
Yeah, something else with it. But again, mistake number five is purchasing an annuity because it hinders your overall growth of your wealth long-term.
There’s nothing worse than getting sold some kind of guarantees or downside protection when you have 20 to 30 years to grow your wealth.
Those are good things when you’re in your late fees, maybe 60s, and you need some kind of guarantees for income purposes. But we’ll talk about that stuff later. Right now, it is full growth.
What can I do to maximize my wealth and maximize the rate of return on all my investments? And annuity is sure as heck not one of them.
And a little teaser when we get into actual annuities and spend a little bit more time diving into them. I’d love to hear from you, how can someone get out of one?
So I want to put that and I want to table that because I’m sure you’ve seen that one too many times. Surrender charges, et cetera, but is there ways out? So we’ll get into that, I hope.
Yeah, man.
And that’s, I mean, yeah, you just brought up something great. They handcuff you right there. They’re surrenders or chargers.
They don’t lose people.
They don’t lose.
They’re like eight or nine years long. So you got to be in these products for eight or nine years. And if you try and cut early, you owe them money.
Why couldn’t my family have a lineage tied to when these insurance companies started, you know?
Yeah, no doubt.
Like why wouldn’t our, yeah, our great grandparents, founders of Rothschilds, of State Farm or something like that.
No, I think those are all five common areas that if you’re listening, you probably can relate to. And I’m glad we put that together, Sean.
Me too, man. Yeah, those are the top five that I see most often. Like I said, avoid them and come up with some ideas around them if you’ve got them.
If you are struggling with any of those top five, come talk to us. We’ll help you out. We’ll try and give you some options.
But yeah, if you’re not, just be weary that those are some lingering things out there that don’t fall for it. Don’t fall for those traps. So that’s what I want to talk about today.
I think that was a great, great conversation and anything else from you?
No, I just I always like to say we appreciate your free game, Sean. I know you deal with this on a daily basis, so you usually got to pay for this type of advice. So I appreciate you too.
That’s the whole point of the podcast, man.
I want to disseminate this out there for everybody to know because the advice should be free and I think it’s the implementation that you pay for, but the advice is this is the things you got to know that’s out there.
So I appreciate you saying that. Until next week, Sean, always great to see you.
Thanks for your insight, buddy. I’ll talk to you later.
Yes, sir.
Thanks, everyone.