Season 5/Episode 24 - REWIND: Getting Your Financial House in Order!

[00:00:00] [SPEAKER_02]: Well, hello everyone. I know it's been a while and I must say I apologize but in the words that my knees just said,

[00:00:10] [SPEAKER_02]: life be life in. And the summer had been so busy. I don't want to make excuses. I'm just happy to be here

[00:00:17] [SPEAKER_02]: and just happy to have you hear my voice and really introduce an episode. This episode is going to be a rewind.

[00:00:26] [SPEAKER_02]: It's one that I had recorded in 2020. If you did not know the Messy Mind podcast started in January 2020.

[00:00:38] [SPEAKER_02]: We are going four years strong. I don't believe it'll be five years next year in January of 2025.

[00:00:46] [SPEAKER_02]: But given the situation that we're in today, the current state of our economy,

[00:00:52] [SPEAKER_02]: I thought this episode would be a great one to rewind. I had an incredible time speaking with Rob Wilson,

[00:01:00] [SPEAKER_02]: but you just take the time to not only look up Rob Wilson, you can follow him on all social media platforms,

[00:01:07] [SPEAKER_02]: including YouTube at Rob Wilson. Think as Rob Wilson dot TV in any event, I'll put his information in the show notes,

[00:01:16] [SPEAKER_02]: but he is a financial expert. I had the pleasure of not only interviewing him on the podcast,

[00:01:23] [SPEAKER_02]: but speaking to him about our own financial situation and how we can set ourselves up

[00:01:28] [SPEAKER_02]: to not only support our family with generational wealth, but the things that we can do in this moment

[00:01:35] [SPEAKER_02]: right now to support us moving forward in our current state of the economy and things that are

[00:01:43] [SPEAKER_02]: come over the next 12 to 18 months. So again, I thought that this would be a great opportunity to

[00:01:49] [SPEAKER_02]: offer this rewind episode that I recorded in 2020. I hope to be back next week with a brand new

[00:01:58] [SPEAKER_02]: Messy Mind episode, but in tell you just hold on and make sure that you embrace the messiness

[00:02:05] [SPEAKER_02]: because you never know when it might lead to your light bulb moments. Enjoy!

[00:02:19] [SPEAKER_02]: Welcome to the Messy Mind podcast. It listening experience where we provide you with

[00:02:24] [SPEAKER_02]: valuable insight, knowledge and experience to engage, inspire and empower with your host,

[00:02:31] [SPEAKER_02]: Tammy L Davis. My husband is taking full advantage of learning something new during this quarantine

[00:02:42] [SPEAKER_02]: period. One of the things he is learning how to do is day trading. So CNBC, financial commentaries

[00:02:50] [SPEAKER_02]: and the like have been playing in the background in our living rooms for weeks now. He has been

[00:02:56] [SPEAKER_02]: trying to explain to me the day trading concepts along with what is going on in our country from

[00:03:03] [SPEAKER_02]: a financial perspective, however I wanted plain English, not a bunch of financial and market jargon

[00:03:09] [SPEAKER_02]: like stocks, options, indicators, bulls, bears. What? Can you run that by me again? I wanted

[00:03:17] [SPEAKER_02]: to understand in layman's terms the steps that I needed to take today and how we can keep our

[00:03:24] [SPEAKER_02]: personal and business financial houses in order so why not speak with a financial advisor right?

[00:03:32] [SPEAKER_02]: In this episode Rob Wilson, author of Secure the Bag, a financial advisor of course

[00:03:37] [SPEAKER_02]: and national TV and radio financial contributor joins me to break down the financial world as we see

[00:03:45] [SPEAKER_02]: it today, how it may play out in the near future and what we can do to prepare if the financial

[00:03:52] [SPEAKER_02]: outlook ever turned bleak again. So today I have the amazing pleasure and honor of chatting with

[00:04:13] [SPEAKER_02]: Rob Wilson, financial advisor, personal finance expert, author of Secure the Bag, Speaker and of

[00:04:21] [SPEAKER_02]: course TV contributor who has been very, very busy over the last several weeks appearing on local

[00:04:28] [SPEAKER_02]: and national TV and radio platforms. I mean, sir, when do you sleep? But I must say that Rob, I really

[00:04:36] [SPEAKER_02]: appreciate you and welcome to the Messy Mind podcast and thank you so much for joining me to that.

[00:04:43] [SPEAKER_00]: Don't thank you so much for having me. It's honor to be here with you. Absolutely. So when I first

[00:04:48] [SPEAKER_02]: started to prepare for our chat, it was either the end of February, really early March, just just

[00:04:54] [SPEAKER_02]: last month. My initial thoughts for our discussion was going to be sitting around legacy in

[00:05:00] [SPEAKER_02]: generational wealth and really what it truly means, what steps we really need to take to ensure that

[00:05:07] [SPEAKER_02]: wealth continues. But my gosh, what a different six weeks makes. So our current set of affairs

[00:05:15] [SPEAKER_02]: are our new normal has really made me totally shift in what I wanted to dive into with you today.

[00:05:22] [SPEAKER_02]: And I only have one question. But I want to put a different spin on the question. I mean, people

[00:05:27] [SPEAKER_02]: really have been focused on taking money out. But I really want to focus to the people who may

[00:05:32] [SPEAKER_02]: have a little extra who may be already have their rainy day funds potentially just sitting in the

[00:05:38] [SPEAKER_02]: bank. So my question is, how should our money now be diversified? Well, that really great

[00:05:48] [SPEAKER_00]: question. And you know, sometimes it takes for us to get punched in the face in order to start to

[00:05:55] [SPEAKER_00]: reassess and start to think about things that really matter and what makes sense as far as our

[00:06:02] [SPEAKER_00]: financials go. And so when you talk about diversification, I think what has become prevalent now is that

[00:06:08] [SPEAKER_00]: people understand that they really need to have diversified income streams. I mean, I know we generally

[00:06:14] [SPEAKER_00]: talk about diversification with regards to investments, stocks, bonds, real estate, gold, different

[00:06:21] [SPEAKER_00]: asset classes. But when you get in a situation like this, you understand that you need to have diversified

[00:06:27] [SPEAKER_00]: income sources. One of the things that I say in the book is that if someone else is signing your

[00:06:33] [SPEAKER_00]: check, they can stop signing your check tomorrow. And while I never would have hoped for or predicted

[00:06:41] [SPEAKER_00]: a worldwide pandemic in order to illustrate that point, you know, what we've seen over the last five weeks

[00:06:48] [SPEAKER_00]: is that 26 million people have filed for unemployment for the first time in the last five weeks. And so that

[00:06:56] [SPEAKER_00]: is 26 million people who six weeks ago had a job, were counting on that income. Suddenly,

[00:07:04] [SPEAKER_00]: I have to rely on payments from the government. And so life comes at you fast. And if you don't

[00:07:10] [SPEAKER_00]: have an alternate income stream, if you don't have a business, if you don't have rental property,

[00:07:16] [SPEAKER_00]: then I'm sure a lot of those folks have some anxiety now about how they're going to put food on

[00:07:20] [SPEAKER_00]: table and take care of their family. So the situation that we're dealing with right now

[00:07:27] [SPEAKER_00]: absolutely highlights the fact that you do not want to be reliant on one so source for all of your

[00:07:34] [SPEAKER_02]: income. That's such a great point Robin, really didn't think about that because my follow-up

[00:07:41] [SPEAKER_02]: question was going to be, should it before you even answered? It was going to be stocks over real estate

[00:07:46] [SPEAKER_02]: or even investing in a franchise. But having that other source or multiple sources of income,

[00:07:53] [SPEAKER_02]: that makes perfect sense. So let's say someone now, they're in the situation. They're one of

[00:07:59] [SPEAKER_02]: the 26 million people who may be followed by unemployment and they don't have that initial income

[00:08:05] [SPEAKER_02]: or second income today. Number one is a two lay for them to start. And number two is their

[00:08:12] [SPEAKER_02]: row, can you give any guidance on first steps that they could take to start with generating

[00:08:18] [SPEAKER_00]: that second income or multiple industry? Sure I can and so as absolutely not too late,

[00:08:25] [SPEAKER_00]: you know, every day that we wake up is a blessing and every day you wake up, you have another

[00:08:29] [SPEAKER_00]: opportunity to be the person that you truly want to be. And so what I would say is one of the

[00:08:36] [SPEAKER_00]: good things that's coming out of the situation that we're in right now is that everybody,

[00:08:42] [SPEAKER_00]: everybody has to work from home now. And so what that has made clear is that work from home

[00:08:49] [SPEAKER_00]: is possible. So I think there used to be a stigma, but you know, from folks who don't go into an

[00:08:55] [SPEAKER_00]: office every day and who run a business out of their house. Now that everybody has to do that,

[00:09:01] [SPEAKER_00]: I think that that stigma has gone away. And what that has also done has made employers say,

[00:09:08] [SPEAKER_00]: you know what, maybe I don't need to have all of these floors in this building or all of

[00:09:13] [SPEAKER_00]: this expensive office real estate. I can probably pair that down and have a lot of my employees

[00:09:21] [SPEAKER_00]: work from home. And furthermore, I think what it's also going to create is employers that say,

[00:09:28] [SPEAKER_00]: hey, if I need to hire someone new, maybe I'll just go straight to someone who already wants to work

[00:09:34] [SPEAKER_00]: from home. So there are already websites where you can go and start looking for positions that are

[00:09:41] [SPEAKER_00]: specifically looking for work from home employees. You can look for jobs on fiber, you can look for

[00:09:47] [SPEAKER_00]: gigs on upwork. There are many different resources out there for you to find these types of jobs.

[00:09:54] [SPEAKER_00]: And now I think is there's never been a better time to do it. Sure, may not feel like it at the moment,

[00:10:00] [SPEAKER_00]: but there is light at the end of the tunnel. We will get out of this and I promise you,

[00:10:05] [SPEAKER_00]: there will be a lot of work to be done once everybody gets back outside. And so those opportunities

[00:10:10] [SPEAKER_02]: that think are going to be plentiful. That's actually perfect because one thing that we

[00:10:16] [SPEAKER_02]: strive in providing our listeners of the Messing Line podcast is to focus on what you can do.

[00:10:22] [SPEAKER_02]: So giving your current situation, you can either focus on what you can't, what you do not have

[00:10:28] [SPEAKER_02]: and what you can't do or you can take the steps to understand, okay, I'm in this situation.

[00:10:35] [SPEAKER_02]: Now I realize that something is possible for me to get out of this situation and maybe make it

[00:10:41] [SPEAKER_02]: a little bit better. So I really appreciate those steps in either generating an income or adding

[00:10:48] [SPEAKER_02]: to an income stream that you already have. So Rob, if I had to put a crystal ball in front of you

[00:10:55] [SPEAKER_02]: at this particular point and again, we're multi weeks in. The conversation has shifted to

[00:11:03] [SPEAKER_02]: when do we get to release those or drop those stay at home orders? The quarantine period

[00:11:12] [SPEAKER_02]: you have some states that have been opening up certain aspects of business. In your crystal ball

[00:11:21] [SPEAKER_02]: world, when do you think we would be either reopening or I don't even want to say moving to

[00:11:27] [SPEAKER_02]: some level of normality because the world as we know it has changed forever as a result of this

[00:11:33] [SPEAKER_02]: pandemic. But if you had to predict when do you think that things will start to be

[00:11:39] [SPEAKER_02]: quote unquote reopen? And what are some things that we can look forward to from a financial standpoint?

[00:11:45] [SPEAKER_02]: So we've got our stream of income, we got our second stream of income, the stay at home,

[00:11:51] [SPEAKER_02]: orders have been released, our quarantine period has been like, say, lacks what should be,

[00:11:58] [SPEAKER_02]: what do you think when do you think those that would happen and what should be our next steps?

[00:12:03] [SPEAKER_00]: Yes. So I think we're looking at probably a July or at the worst case maybe in August.

[00:12:11] [SPEAKER_00]: Because I think what we understand now is that we just can't shut the economy down forever.

[00:12:16] [SPEAKER_00]: I think we're doing the right thing now. If the social distancing is needed to flatten the curve,

[00:12:21] [SPEAKER_00]: let the healthcare system catch up and get the ventilators and PPE that they need. And we're doing

[00:12:27] [SPEAKER_00]: the right thing. But the country, the way we operate is not built to have the economy on hold

[00:12:33] [SPEAKER_00]: indefinitely. So I think by July or August will definitely get back to some sort of normalcy.

[00:12:40] [SPEAKER_00]: Maybe not totally because I think some industries are going to take longer to come back to

[00:12:44] [SPEAKER_00]: but I think you'll see people getting up and go back out to work every day. And so your

[00:12:50] [SPEAKER_00]: question next question is, what do we look forward to once that happens? Well, since you were

[00:12:55] [SPEAKER_00]: going to ask about the markets and things, I do think that people want to take a look at

[00:13:01] [SPEAKER_00]: what they're invested in and maybe start to get back in the market if they sold some on the way down.

[00:13:06] [SPEAKER_00]: One of the unfortunate things that happened here is that I think people got caught off guard

[00:13:11] [SPEAKER_00]: with their investments. We've been in a bull market for basically 11 years since the financial

[00:13:17] [SPEAKER_00]: crisis and I think people sort of fell asleep at the will a bit, you know, things are good.

[00:13:23] [SPEAKER_00]: They didn't feel like they needed to work on their portfolio that much. They weren't paying

[00:13:27] [SPEAKER_00]: attention to the statements. And then in a space of 22 trading days, the S&P 500 went down 30

[00:13:34] [SPEAKER_00]: percent. The fastest it's ever dropped that amount in history. And so you could imagine when people

[00:13:41] [SPEAKER_00]: have been paying attention to it and it starts to drop like that, you panic, you sell,

[00:13:45] [SPEAKER_00]: you make the wrong decision at the wrong time. So now you've got to rebuild. So, you know, as

[00:13:50] [SPEAKER_00]: things start to recover, yes, you want to take a look at great companies that you know who are going

[00:13:56] [SPEAKER_00]: to be beneficiaries or going to come through this strong runny other end. And you want to get some

[00:14:01] [SPEAKER_00]: of your money invested. That should be a part of the diversification of your income stream. Some of

[00:14:11] [SPEAKER_00]: the dividends and capital gains as well. And so, you know, again, when you're in the midst of

[00:14:17] [SPEAKER_00]: a stock market crash, it may sound crazy to hey, put your money to work and it may be hard to

[00:14:23] [SPEAKER_00]: press the button when you're inside of your brokerage account. But the fortunes have been made

[00:14:28] [SPEAKER_00]: through recessions and times like this. And the idea of investing is to buy low and sell high.

[00:14:34] [SPEAKER_02]: And so you're getting your opportunity to do that now. And makes perfect sense. And and Rob,

[00:14:40] [SPEAKER_02]: let's say, for our small business, our mom and pop entrepreneurs, which I'll be

[00:14:45] [SPEAKER_02]: classed by myself. Of course, as one, that's a huge listener base for us. How do we make sure

[00:14:52] [SPEAKER_02]: that we're never, and I say, you know, maybe I shouldn't say never. But how do we make sure we

[00:14:57] [SPEAKER_02]: are not caught off guard? What are things that we can do to make sure that we're prepared

[00:15:01] [SPEAKER_02]: for the next situation? Goodness for being letting not be a pandemic, but how do we make sure

[00:15:08] [SPEAKER_00]: that we're prepared? So whether it's with your portfolio or whether it's with your business,

[00:15:14] [SPEAKER_00]: I think you have to stress test both of those things. And you have to ask yourself, what

[00:15:19] [SPEAKER_00]: would I do if literally if 40% of my customers walked out the door tomorrow? What would my plan be?

[00:15:28] [SPEAKER_00]: And perhaps six weeks ago, people would not have listened to that question or what they've been

[00:15:37] [SPEAKER_00]: government tells you that you must shut your doors, and you can't do any business. Suddenly

[00:15:42] [SPEAKER_00]: that question doesn't seem so silly. And so we don't know what the next issue is that's going

[00:15:49] [SPEAKER_00]: to cause a recession. We don't know if there's going to be another virus that's going to turn

[00:15:54] [SPEAKER_00]: into a pandemic. We don't know what the next crisis will be. One thing that we can have some faith in

[00:16:00] [SPEAKER_00]: is that there will be some road lockdown in the line. And so what you have to do as you come out of this

[00:16:07] [SPEAKER_00]: is that you have to be ready for the next one. Understanding that you don't know exactly what it is,

[00:16:12] [SPEAKER_00]: but you have to be ready for different scenarios that that may take a hit to your business

[00:16:16] [SPEAKER_00]: and understand what you're going to do in that situation for folks that used to play baseball when

[00:16:21] [SPEAKER_00]: they were younger or even now. This coach tells you that you have to be ready for that ball to be hit

[00:16:27] [SPEAKER_00]: to you every single pitch. You can't start staring up at the stands or up at the sky because

[00:16:33] [SPEAKER_00]: it's nice, beautiful day. You have to be ready for the ball to be hit to you because if not,

[00:16:37] [SPEAKER_00]: you're going to get hit in the head with it. And so if you approach your business,

[00:16:41] [SPEAKER_00]: if you approach your life, if you approach your investments that way, then if you stay ready,

[00:16:47] [SPEAKER_00]: you don't have to get ready and that means you won't panic and you'll know what to do when

[00:16:52] [SPEAKER_02]: that situation arises. That's awesome advice. And inside Rob, I really do appreciate you. Thank you

[00:17:00] [SPEAKER_02]: so much for joining me today. And most importantly, where can our listeners find you?

[00:17:07] [SPEAKER_00]: Sure. I am at Rob Wilson TV everywhere on social and for folks who might want to pick up the

[00:17:14] [SPEAKER_02]: book, you can go to securethebag.me. That's perfect. Thank you again Rob. And stay healthy, stay

[00:17:24] [SPEAKER_02]: sane, and we'll be chatting again soon. Thank you so much, you did a say.