In this episode, we have Jamilah N. McCluney. She started Black Wealth Financial after learning some very important money lessons the hard way. Being completely clueless as to how credit cards, mortgages, or 401ks worked, she found herself making horrible money moves and financial decisions, which would ultimately impact her financial future in a very real way. The process of dealing with money is very personal to Jamilah and she often sees a similarity and feels a connection with her clients no matter where they are along their financial path.
She earned a Bachelor of Science degree in Psychology from Howard University and believes that her background in behavioral science helps her understand how people think and feel in regards to their personal debt and finances.
Jamilah’s goal is to eliminate her clients’ anxiety around money and to proactively and quickly get them out of debt, and on the path to living their best financial lives. She’s been dedicated to this pursuit for nearly a decade and sees herself more as a financial coach and strategist. Her action plans are very hands-on and she’s not afraid to speak the hard truths and realities when it comes to you and your money.
How she started her own business, Black Wealth Financial, after learning some important money lessons the hard way
How her business focuses on teaching people how to build and protect their wealth through strategies such as buying and selling commercial properties, investing, and diversifying their portfolios
Why clients should be their own bank, so they can earn their own interest
The benefits of life insurance, including the ability to use it to reduce taxes paid over one’s lifetime and to invest in assets that will provide tax advantages
One of the key benefits of life insurance is that it allows you to borrow against the policy, which can be useful for real estate or other cash-producing investments
The current market conditions are causing many people to rethink their retirement plans and invest elsewhere
There are a variety of ways banks can make money from selling life insurance policies
There are also advanced strategies where people sell off their life insurance and then use the money to invest in other assets, such as real estate or stocks
Why it is recommended to save 15-20% of one’s income to benefit oneself in the long term, whether that be in the form of real estate or other investments
The final questions
Why ignorance will make you miss out on opportunities
Jamilah shares her strategy in choosing between Baltic Avenue and Boardwalk with the Monopoly game
What’s next for Jamilah?
Connect with Jamilah!
“To have the ability to pay cash is a flex.” – Jamilah N. McCluney
“The biggest thing you wanna do is grow first yourself.” – Jamilah N. McCluney
Connect with Jamilah N. McCluney through www.GetBlackWealth.com
Follow her on LinkedIn https://www.linkedin.com/in/jamilahmc…
and Youtube / @blackwealthfinancial9265
Let’s get connected!
[00: 00: 00 – 00: 00: 29]
Well, financial institutions, the way they make money is off interest. Right? Like, they lend it to you. You borrow from war. They help you pay it back as long as it takes. Oh, the big that’s why they keep increasing your limits, but they didn’t wanna keep you in debt. The more they keep you in debt, the more you make money. But that’s not how they make money. They make their money. using leverage. And so they loan it out, you pay them. So there’s a way they hope you never learn how to do it because then you won’t meet them.
[00: 00: 30 – 00: 00: 55]
Welcome to the share the wealth show where minority professionals can learn to escape the racial wealth gap and catapult themselves into abundance. Your host Nicole Pendergrass, who her net worth from being negative to multiple six figures. Join her on her investigative mission to expose strategies of the wealthy so we can all have the tools needed to build the life and legacy we were created to possess. Now it’s time for the show.
[00: 00: 56 – 00: 02: 40]
Hello. Hello. Hello. Hello. Today’s episode with Jamila McCloney. You guys are in a treat. This is kind of great. Uh, she is a principal and financial strategist for Black Wealth Financial. I love the name. She started that company after learning some very important money less cents the hardware. Being completely clueless as to how credit cards, mortgages, tomorrow, what keys, or any of that worked She was making horrible money decisions, and that ultimately impacted her financial future in a very real way. So that is just the snippet of the beginning of her bio. There’s so much in here, and Yes. You don’t follow her on LinkedIn. You need to because even her bio on LinkedIn is like it just makes you wanna know more. She really dug into telling us we actually talked a lot about life insurance, but it’s such a powerful tool. In our wealth building journeys, you wouldn’t even realize some of the things that you can do with it. We talked about stock markets and people losing money from that and how are they using that money, talk about diversification, we talked about how your portfolio should be split up, uh, between different asset types and just everything that you really need to know. And I know we actually just finished chatting for like another 45 minutes after I stopped recording. And I’m so mad because I wish we had recorded that too.
[00: 02: 41 – 00: 03: 37]
I may have to have her back on so that we can pick up and, you know, talk about some of those things because she actually takes her clients through a financial modeling to really figure out, like, just all the nuts and bolts and what that plan should look like and where you should be allocating your money and just All the things that you really use you to create a plan. Right? So if you’re interested at all, contact her Just to even have the conversation, she gives it at the end of the show the information how to get a free 30-minute call with her and just start just start being interested in your financial future and willing to step out of your comfort zone to reach out to people who you don’t know, and it might be uncomfortable talking about your finances, but you need to just get it done and be uncomfortable now so that you can be extra comfortable later. But in any case, let’s get into the show. Listen.
[00: 03: 38 – 00: 04: 32]
I know you’ve been digging in, studying everything you can, listening to all the podcasts, reading all the books, even going to meetups. You basically have a degree from YouTube University. Right? But you still feel stuck. You don’t know how to actually implement what you’ve learned. You’re nervous about taking the next step. And what the economy like it is, especially with a downturn roaming, you’re even thinking maybe you should just wait it out. I know you’ve heard that real estate makes more millionaires than any other asset class, but you know what else? Mira millionaires are made in a downturn than any other market cycle. So now is the perfect time to jump in and really get started. I’m super bullish on growing my portfolio this year, and I don’t want you to miss out. So I’ve decided to start the micro family investing an accelerator.
[00: 04: 33 – 00: 05: 41]
This is a mentorship program where I personally guide you through my 5 proprietary pillars so you can learn how to buy your first commercial multifamily property, and scale while not biting off more than you can chew by focusing on 5 to 20 units. That’s what I call micro family. And so you can also get hands on guidance from an experienced micro family investor, me, who’s been right where you are nervous about how to start. And so you can also create the cash flow needed to give you freedom and options to build the abundant life that you were destined to live. So I’ll be limiting the first cohort to 5 students because They don’t have direct access to me, and I will be heavily invested in their success. The first group is gonna start in January, so If you’re ready to grab 2023 by the horns, schedule a free discovery call with me today. The link is in the show notes. Let’s hit the ground running in 2023.I look forward to seeing you on the inside, and now let’s get back to the show.
[00: 05: 42 – 00: 06:48]
Hey, everyone. Thank you for joining us again. another episode today of the share the wealth show. This is the show where we discuss strategies to build, grow, and protect minority wealth. And today, I have the pleasure of speaking with miss Jamila McCloney. You also, you say your last name. Right? It’s Jamila McCloney. I’m gonna look. I’m not calling you. Okay. Sorry about that. Well, I found you on LinkedIn. Mhmm. Was very impressed with your bio. I actually even printed it out, and I have it here with me because I was like, I just need to study this. This is like, Well, like, there’s so much information just in your bio. They’re like, it’s very well written. It makes me automatically just want to know more about you and what you do and to just ask me questions just from that. Could take us, like, 2 or 3 hours. So in any case, um, again, we wanna kinda high level overview of, you know, the bio that you sent me. But tell us a little bit about your journey and how you got to what you’re doing today.
[00: 06: 49 – 00: 07: 31]
Oh, thank you for having me. Uh, happy to be here. I actually got into the financial services industry about 12 years ago. I wanted to be a doctor. That’s what I thought I wanted to do my whole life. And I wanted to do that because I wanted to help people. And so transitioning into the wealth management and money management space allows me to do that. I made horrible, horrible financial. They she’s crazy in college and after college. Nobody taught me, you know, I didn’t know. And so that’s really what started me. I was like, I can’t be the only one. You know? So that’s what really started my deep dive and getting in and learning everything I could so that I could help people.
[00: 07: 32 – 00: 08: 33]
Okay. Yes. So many already similarities. I went to med school. I was premed the entire time, even when other people were dropping out of premed, I think they were the smart ones because they realized this is not what I wanna do. Let me not waste my whole college undergrad career doing something I’m not gonna ultimately end up doing. Um, but I he was like, oh, I stick with it. You know, I’m not a quitter. It’s so cool. I started working in the hospital because I was gonna have to do a post back in order to go to medical school. And then I was like, I don’t know if you think this is what I wanna do. But it’s like, now I have this science premed degree and, you know, what I’m gonna do. So this This journey has been me figuring that out and stumbling into real estate and starting that way. And so I also made terrible financial decisions in college everyone, everything. You know, we weren’t really told, like you said, but so this neither here or near, but any case, now you are in Financial Services industry and tell us about Black Wealth Financial.
[00: 08: 34 – 00: 09: 06]
Okay. Black Wealth Financial, we help professionals, entrepreneurs, like business, people. We help them protect and grow their wealth. And, ultimately, to increase their cash flow by protecting our money from the 3 biggest triple threat to wealth building. And other taxes, everybody knows that Wall Street And Debt. So those are the area that I focus on improving and increasing and using some advanced financial strategies. tackle so that we can increase the cash flow and build up the wealth.
[00: 09: 07 – 00: 09: 56]
Okay. So, automatically, my ears peak when you said advance financial strategies, because I have no clue what that means. Uh-huh. Well, everybody’s different. Right? So I kinda take a really a holistic approach to what you have going on. Everybody’s not the same. Everybody’s financial and money Johnny’s not the same, but I also like a financial, like, personal trainer is how I explain it. You know, I’m really getting in. It’s like, okay, Nicole. This is the body that you wanna have and how you wanna look. And I’m weighing you. I’m looking at you now, and I’m saying these are steps that we have to take to get you there. But, you know, a lot of advisors aren’t starting there. You know, they’re things that are preventing you getting to where you wanna be. And if we tackle those, we can get you there much quickly. So that’s my focus. And that’s really what sets me apart and makes me different from most advisors out there.
[00: 09: 57 – 00: 10: 49]
Okay. So what is what exactly is holding up the other advisors for being able to help their clients as fully as you probably could help them? I think it’s probably just understanding. I’ve had consultations clients, and they come to me. And one of my questions I ask, have you ever worked with a financial adviser before? And they’ll say, yeah. I talked to somebody, and they said I need to spend less and save more. And it’s like, okay. Yeah. But how do I do that? Right? Yeah. So, like, I understand, you know, I come from I think we learn our spending and financial habits from our parents, just like most of the things. And so I understand what that looks like. A lot of you know, as a 1st generation money, college graduates, and just starting to make some real money. And so I know what that background looks like and what needs to happen, and so I can kinda start to get that foundation together to get you where you need to be.
[00: 10: 50 – 00: 11: 34]
So most advisers were like, okay. How much money in the code do you have to invest? You know? You got a 100,050,000, and you don’t have that. You’re just out of the run rate. But you still need the education. Right? And so what if I could help you build and get to the 50,000 or the 100,000? And then we can do, you know, some of it advanced up later, but the foundation has to be right. Yeah. I believe. Okay. So what are some of the, I guess, because of out of all of your clients or what you seen most regularly occurring. Um, what are some of the common financial strategies just to make the found day and stronger that you’ve had to give as, like, advice to your clients? Like, what’s the most common thing that you’ve seen?
[00: 11: 35 – 00: 12: 19]
One thing that I see often is helping. You know, we we’re not really where we wanna be, but we’re helping grandma. We’re helping mom. We’re helping. I see I see your face. That sounds familiar a little bit. Uh, helping. And, you know, I get it. We’re under that obligation. You’re the first to debate it. You know, you have family looking at you. Like, I know you got it. I need this. And so that’s one of the things that you I always say blame it on me. Tell them your financial adviser said, can’t do it. You know? And it’s not pumping it, but we gotta get you together for, you know, when you’re on an airplane and they say, you know, fix your oxygen experts. So I wanna help you actually canceling money to be able to help later. So you gotta take care of yourself first.
[00: 12: 20 – 00: 14: 07]
Yeah. That is deep because especially when the people who came before you has sacrificed a lot to help get you to where you’re at, you feel obligated to return the saver. But in that, it becomes a vicious cycle because you can never get your oxygen mask on first. you might have to do a short term sacrifice and decide, like, I can’t help or I can’t help as much as I want or maybe, like, siphon off a certain percentage or amounts money monthly or annually or something that you can actually donate or give for certain causes or if it’s something like this, an emergency. I think that’s what I heard. Uh, one of my other, um, host or guest before said that, and that’s what he had to do was basically put limits and, like, put requirements on, like, if you need help, it has to be for one of these reasons. Like, that things that he thought were serious enough that, like, you actually need the money, not because you overspent on your grocery bill and I’m not something else. Like, oh, yeah. You’re not gonna stalk your death. But, anyway, but it’s that’s what that’s like, basically and then if what he gave that or, you know, to whoever was asking, anybody else who came after that was just too late for them. Like, he didn’t have any more, and, like, he had certain dollars delegated to helping family and the rest was for his financial. And I think you’re getting some you had just come up with some kind of plan to handle that. So you don’t look completely selfish, or you just gotta not care what people think about here. I think the latter. It and you know what? Every guy’s gonna That’s what I’ve learned. They’ll figure it out. They’ll ask somebody else. They’ll get it. You know, they’re not gonna die, they’re not gonna starve. They’re gonna figure it out. So once you can let go of that, you know, kinda tie. You you can get where you need to be.
[00: 14: 08 – 00: 14: 32]
Yes. And, actually, you know what? It’s actually It’s painful for them in that moment that they have to figure it out, but it helps them more in the long run because they could figure it out. And now they can do that again. It’s kinda like at teaching Amanda’s fish instead of just giving him the fish thing. Like, I’m sorry, man. I learned how to do it at first. Like, not catch nothing. But if you stay consistent, you do it, you’ll get it taken out. Yeah. Take it out.
[00: 14: 33 – 00: 15: 29]
Okay. So in your bio, I knew I was gonna pull a lot of information from here. You said you teach people how to play the debt game like financial institutions play and not how they teach. What does that? Well, financial institutions, the way they make money is off interest. Right? Like, they lend it to you. You borrow from them. They help you pay it back as long as it takes, well, if they that’s why they keep increasing your limits. But they wanna keep you in debt. The more they keep you in debt, the more you make money. But that’s not how they make money. They make their money by using leverage. And so They loan it out, you pay them. So there’s a way they hope you never learn how to do it because then you won’t meet them. So I teach my clients how to become their own bank so that they can earn their own interests on their own money borrowed from themselves gave himself back and continue to grow and be able to return it.
[00: 15: 30 – 00: 16: 13]
Okay. Alright. So you’re talking about the, like, the bank on yourself? life insurance policies or some — That’s a big that’s a big component that I think our community misses out on. Uh, I’ve been in any industry for a long time. My grandfather, actually, when I checked Moore, he owned a lot of property and land, and he had burial insurance. Right? Like, black people, we might if we buy insurance, we’re gonna get that. We might get burial. Just enough. When you see how other people and how to lumpy or using life insurance to grow and build themselves and borrow from themselves, this powerful tool that I think is really being overlooked in our community.
[00: 16: 14 – 00: 18: 10]
Yeah. Okay. Now becoming tax efficient and significantly reducing taxes paid over your lifetime. So I get that that is just base is that basically just investing in assets that will give you tax, like, write offs or that are tax advantage and what are some of those that you’ve, um, re recommended for your clients. One of the big ones you know is real estate. Right? Like, you can write that off. Uh, any of those types of assets, most of the things that we’re taught is to put it into tax deferred things where, you know, you put in your 401 k, your IRA penalized, if you touch it, before a certain age. You gotta pay taxes on it. A lot of people don’t know that that account grows, and it falls, you know, it goes up and down. And so you’re kinda looking at that end number thinking that’s your number. See, you have a $1,000,000 in it, but at retirement, you still gotta partner, you know, taxi. You gotta pay that. And so it’s just being more efficient in knowing, you know, I I just want everybody to really see the power of how life insurance can work because there’s a lot of tax efficient strategies in that. There’s a lot of, compounding growth that you can have in it over to it. And then there’s the opportunity to use it perfect for real estate, you know, borrow it from yourself instead of the bank, and one of the things that’s really powerful about it is when you borrow from it, you don’t lose. It’s not like you actually took that one out. So that money is still there growing as if you never touched it. And that’s what really makes it powerful too. So imagine you have a property and let’s say it’s $20,000 that you need to put down. So most people will borrow that from the bank, right? $20,000 get a loan and you pay whatever now or what it, like, 7 a half. It’s just right here because gravy. Like, 8. I have a friend who’s actually looking at mortgage is 30 year mortgages for a second home, and then she’s getting quoted over 8.
[00: 18: 11 – 00: 18: 52]
Wow. Yeah. That’s well. Yeah. And you know, so if you can borrow against yourself from yourself and put that 20,000 down. And so let’s say it’s an investment property as tenants make that payment. You make the payment back to your life insurance policy, but it’s still growing as if you never took the $20,020,000 out on top of the interest that you’re gaining from making the money from the tenant. So it’s like, getting your dollar to do the job of 2 things. And that’s what most people most people’s dollar do one thing. Right? But if you can get it to do 1, 2, 3, 5 things, and you’re just growing and building all over the place and not really dependent on one source.
[00: 18: 53 – 00: 19: 55]
Yeah. Um, I definitely try to stretch my dollars as much as possible. All over the place. So I have used a Baker and yourself policy. I have one now. Um, like, as soon as I funded it, I pulled out and I actually bought my first commercial pretty with that. Like, it’s a joint venture. So I the main reason because I know, like, I’ve heard you can there’s so much flexibility with it. I’ve heard that you can Actually borrow from an outside institution against your cash value in a life insurance policy. In some places at the time, we’re giving, I don’t know if it’s still lower, but lower interest rate than even life insurance was giving you. But then the main draw for me was that I was gonna be repositioning these properties, and I didn’t wanna have, like, a dedicated payment. So with the life insurance with mine, I don’t have to pay the principal ever. I can just pay the interest. And then that way, I can take the principal back after, like, I do whatever I need to do with the property, refinance, blah blah blah, take junk, pay it back. So That was why that had more of a draw for me.
[00: 19: 56 – 00: 20: 47]
The other thing about it that I’m probably, like, I studied this a lot at first when I first opened it, but I and getting foggy on the details. So I would ask you. The working, the, like, the money’s way take out from your withdrawal not withdrawal, but take a long or whatever from your alone from your cash value, right, because that’s basically what it is. So your cash value is still there because you’re actually borrowing from the life insurance company’s pool of money, not from your own pool of money. Right? So that’s why your balance stays the same. And I know you get dividends on your balance that’s still in there, but then you’re also paying interest on the loan that you took out. So does it is that like a wash while you have the loan with withdrawal, or so is it still growing on this side if you’re paying interest? You know what I’m saying? Like, how does that work?
[00: 20: 48 – 00: 22: 24]
Yeah. It is still it depends on what you’re doing. Right? So if you’re pulling it out, you wanna make a higher percent than what the loan with the loan is. Right? And there’s tons of different permanent life insurance policies. The ones that pay dividends are called whole life uh, there’s a lot of people running around selling them, but they happen to be properly structured in order to really get the maximum ability that they can have. So If you’re if you’re paying interest or if you’re taking a loan against your policy for 4%, then you need to make more than 4, when you’re taking it out. But the great thing about it is if you’re purchasing real estate or another cash producing asset over time, I did the math on, um, I don’t remember the numbers right now, but it was almost like a 400% increase on what it was over time because you’re paying the loan back, and it’s not it’s paid. It’s a decreasing loan, so it’s not your original balance. So every time you make a payment, your balance is getting lower and lower and lower. And you don’t have to pay it back. You don’t pay it back. They deduct it from you’re the death benefit, so it’s not really, like, you know, if you can really use that to do, like, what you did, that was a powerful move. I haven’t really met. I’ve only met. I’ve been doing 12 years. I met one client who already had this type of policy working for her. And I was shocked because it’s something that once I learned, I was like, oh my god. Tell everybody like, well, I know it’s about this, like, and it’s not a secret, but it is a real powerful move to really strategically mold money and grow money. Uh, this is how the wealthy’s been doing it forever.
[00: 22: 25 – 00: 23: 55]
Yeah. And I’ve heard about that, like, Well, Walt. Dindy and some other big names took from there. I’ve their whole life retirement accounts. Okay. And so what do you think about? I’ve been learning a lot about, like, IUL. Mhmm. And I the only thing that I had studied and heard about was whole life, because I guess that’s, like, the stable, more reliable version of the whole life policy. But then you have IUL, which is like, your losses are capped. Right? Certain things like, hey, which do you prefer? Like, go into detail, like, why would you do it or not do it? What do you like better IUL versus whole? Like, but your whole life is gonna be that’s a good question. Your whole life is your guarantee. Right? You’re gonna average about 5% with the dividends. Like, guarantee it’s coming regardless. The IUL, it stands for index universal life. So it’s tied to an index, so like the S and P 500. So let’s say and they’re capped. They don’t they have a floor of 0 so you can never lose more than 0%. You just won’t lose anything. But let’s say the market is up 30% in your IULs capped at 10. So you give up some of the upside to not have any of the downside. Which is great, right, but there’s gonna be some years when you get 0. So there’s gonna be no growth for the year. Yeah. Where your whole life is that guaranteed you know, they’re gonna need time to get 10%. Yeah. And so there’s still, you know, costs associated with it when you get those zeros.
[00: 23: 56 – 00: 25: 35]
Uh, they’re very flexible with premium. So it just depends. I think that it’s great, but the whole life is especially in an environment, like, now when people are seeing the 401k balances, like, drop by 6 figures and their stocks drop people want guarantees. Right? And one of the things you talk about is the dividend. You’re not getting dividend in the IUL. So dividends are nice. Kinda Yeah. And so then you’re really building and growing. So for you for him, wanna, though. Oh, thank you. Yes. How much do you feel? You got a small win? Yes. Oh, man. But, yeah, it’s like, the other thing too, I’ll just throw it out there and say it. Like, I was refinancing the first building that purchase. It was gonna put all the money back in there, you know, have that be sitting and growing for the next time I needed something. And then we ended up refinanced and actually buying another building right away. So I haven’t still been able to pay back that. It did not pay it back to myself. It’s still something in my head like, okay. I gotta pay that because I know it’ll grow faster when I don’t have a loan out, but even though it’s still growing it, I’m still, like, leveraging, you know, the interest rate from there with versus the interest rate from my investments, but it’s just I think over this, since I was also so new, I’ve only had it for, like, 2 years, you do see more benefits increasing as you as the years go on because then that cash value starts growing. And at some point, you could even stop paying the premiums, right, and, like, the policy can have enough cash flow or dividends take over the premiums. That’s true.
[00: 25: 36 – 00: 27: 10]
Yeah. And like I said, it depends on how they’re structured. You’re gonna have over time, you’re gonna see, like, a lot of growth in and your initial thought was what you would wanna do. Right? You wanna take the cash, put it back, and just keep, you know, funding it out. But, you know, do it as you can. I you know, let’s say you make payments back. Right? You don’t necessarily have to click the whole lump sum, but you know, maybe it’s just payments that you make over time. And then you just rinse and repeat. Keep doing the same thing over and over and over. And now you’re the bank of Nicole, versus going somewhere else than paying, but it but it works for anything. Right? The whole one of the things I asked my clients a lot I give an example, and I say, okay, Nicole. Like, I’m gonna give you some apple seeds, right, and tell me you wanna grow some apple trees. I got the seed, and I’m gonna give them to you as some point in time, I’m gonna come back, and I need you to run me my money for the for the apple. Don’t worry about it. We’ll talk about it. You know? So you can pay me when I come back. Now you’re taking your time. You’re chilling the ground. You’re making sure you water it and dust in the proper sun and you’re out there putting in all the labor all the time to make these trees grow. Here I think, and I’m looking. Oh, you got a nice little orchard here in the Coke. Like, and I wanna be paid. You know, I gave you the receipt, and I always ask a question. I’ll ask you, would you pay me back would you pick the apples from the tree to pay me, or would you cut the tree down and give me the tree and then I can go take the tree and plant it and now I’m growing apple.
[00: 27: 11 – 00: 27: 43]
Wait. Cut the whole tree down. Cut the whole tree down. Root it up. Here. You take the tree. Oh, so is somebody else gonna just replant today? But then they got already got, like, a grown tree that I put a lot of work in to grow. Right. You gotta start from seeds like me. I’m a pay you back seeing. I’m gonna take a couple of apples. I’ll give you back the same amount of seats she gave me with the interest seeds. Thank you. Give me one more seed. Okay. Yeah. You get a couple extra seed, but I think, um, I’m gonna keep my tree because I spent a long time growing with it.
[00: 27: 44 – 00: 28: 50]
Exactly. Exactly. But so when you position debt in the way where you’re saving all your money, you’re paying cash for something, right, you’re essentially chopping down the tree, and now you gotta build it back up. So when I ask people that — Yes. You’re a smart girl. They say, I’m a just cut the tree. You can have the tree. And but when we talk through it, it’s like, yeah. What just like you said, like, here’s the seeds. I did all the work. So what you wanna? Do you wanna keep your work always working for you. Right? So when I hear people say, hell, I pay cash for this. Like, 100 of 1000 are tens of 1000 of dollars, it’s like, oh, that could’ve been growing and building for you. And you could’ve borrowed against it like you never took it. So That’s kind of how I position our analogy to get people to really understand the power of what it lists, not a flex to pay cash. Right? Now the ability to pay cash is a flex, but to pay cash, you don’t really understand how money works, or you don’t have it working for you. And so one of the stories I talk about. Go ahead. I’m sorry. No. No. Finish. Finish what you’re saying.
[00: 28: 51 – 00: 29: 33]
Before the meta debacle, you know, Mark Zuckerberg, He was the last time I checked, he was worth, like, 72,000,000,000, and he has a mortgage. And you would think, like, why does he ever he can take write the check. He won’t fill it. His kids won’t ever fill it. But he’s got his money. I was like, man, whoever manages his money understands how money works. Right? So the money that he would have taken to pay this house off, He’s got it invested in growing, working somewhere, and then he just makes the famous back to his mortgage. So it’s really, like, understanding a different mindset. Right? That that’s really what I work on trying to change. It’s the mindset.
[00: 29: 34 – 00: 30: 26]
Well, I love that example, though, of the tree. Yeah. Yeah. because it really did make me think for a second. But then I was like, you can have one tree. But then I was like, no. I have a question. So I’m working on that. It was basically, like, this whole, so it’s all about using debt wisely for appropriate things and not just consumer debt, but debt for investments and arbitraging your interests. Exactly. Yes, David. — versus what you’re paying for the debt? Because, honestly, to tell the truth, if I had $72,000,000,000 or I was worth $72,000,000,000, I don’t know if I’d be bothering with a bang. I he probably got I mean, if you got a bigger, if it’s gonna be super easy, if I don’t gotta send you 500 pieces of paper, okay. Alright. We could just do it. But — Right. — it like, I’m wondering what the head looks like. That process approval process looks like for Mark Zuckerberg.
[00: 30: 27 – 00: 31: 09]
I wonder. Like, because it’s such a pain in the butt. Yeah. Yeah. It’s really what? But it’s probably collateral for him, and, like, kinda what you were talking about earlier, your licensure’s policy can be collateral. So banks, you know, can look at it and say, oh, she’s got this much money in here. Yeah. You know, there’s advanced strategies where people sell off their life insurance. And then they, you know, like, say you’re 80 and the premiums are higher than you wanna pay. Somebody will come and offer you percent of death benefit. Maybe they give you 300,000 that the policy’s worth a 1,000,000. You’re 80. You don’t care. So you take the 300. Now you’re gonna die at some point, and the investor will keep me it’s so many it’s so many ways.
[00: 31: 10 – 00: 32: 00]
Okay. So I have heard about that. Now I gotta for that. Okay. So you’re 80. You’re about to die. So you can sell off your life insurance. If you need capital right now — Mhmm. because, like, you know, whatever’s happening. So you want that 300,000, but that person knows that we’re you pass, they’ll get your they’ll be the beneficiary of that policy now. So they’ll get the full million. Like, what about, I guess, if you don’t have heirs, you don’t because then, otherwise, are they buying the full amount of your debt benefit or just partial amounts or, like, who they’re now the owner? Just the benefit. They’re now the owner. They’re now the owner and the beneficiary. Okay. Yeah. And so it just depends. That’s like, you know, if you just really capital or you don’t even have to be 80. I just use that as an example, but — Yeah. — you know, it’s a bit the way. Yeah.
[00: 32: 01 – 00: 33: 04]
But what you’re saying, you know, I ask people that too, like, with the lottery, even on the lottery, like, what would you do? The first thing that because the fact that the matter is all debt, not the same. Right? I talk increases. The debt is bad debt. It might all feel the thing for you where you’re paying, and then you’re looking at the balance. It’s not all the thing. And so, you know, if you can determine, you know, your mortgage is good debt, I think student loans are a good debt. You know, without those, you may not be in a position to have a career that you have. You know, you can write up the interest with that sometimes. So the bad debt is that con that cancerous debt is what I call it, a credit card debt, and a personal loan, then depending on type of car Yeah. That’s eating away your ability to earn money. So get rid of that and then really start running up The good debt is leverage, like what you did with your policy or, you know, refi and that that’s a great way to do it. Home equity line of credit, also real great, really great, uh, tools to use.
[00: 33: 05 – 00: 34: 45]
And, yeah, I get I get really excited. I’m Don’t keep going because I want all the excitement. I want, like, all the, like, teams just be spilling out. Right? We need this is to be a master class now it’s almost time, but I wanna ask about, like, the rates and everything craziness that’s going we’re in the market right now. What, I guess, is an example of, like, I don’t know, clients who have lost a lot, or they deciding to withdraw and invest in something else? Like, what’s the general sentiment? Are they just holding off? Cause if until you withdraw, you don’t actually realize the losses. But what I have seen, and I can’t find the chart anywhere, but I’ve seen an example charted out where your money can go down so quickly and now at your assessment percentage wise, it like, if it drops on making these up, if it drops 30 or 40%, It needs to increase by, like, 70% in order to get back to the same level that it was before, which also takes longer. Sometimes people that say, oh, when it drops 30%, it’ll increase 30% over a year. But, like, are you talking about what percentage are you talking about? Are you talking about the same percentage? Because set it up a 100, a 30 percent of a 100,000 versus 30 percent of 60,000. Those are not the same 30%. Right? Exactly. So how is the whole What do you see as far as like? Realizing losses versus keeping it in because the roads could be slow going up or Just like, what’s your advice, though? I know you have clients who are invested in in stock market in in Wall Street. And — Mhmm. — I know you’re not Are you are you anti Wall Street? And I know you’re probably not favorable towards them.
[00: 34: 46 – 00: 36: 18]
I’m okay. Anti, look, I’m a security license. I think It serves a purpose. Right? I think it should be a bucket. I don’t think it should be the complete bucket or the entire bucket. I think where you put your money but you wanna be in you wanna have liquidity, right, meaning you wanna access it when you wanna access it, when you need to access it, you want to use it, and you want control. And so when you have to go I even say that for people who lock all of their money up in equity, right, like, who’s really in control? I mean, think about it. You gotta go to the bank and say, when you refi, you have to now prove that you can afford this new mortgage, you know, And so it’s like, who’s really in control there? So I think what this environment is showing and should be teaching is I might need to do something else. I might need to diversify and not just do what everybody’s doing. You know, should I keep my money locked up in these stocks? Should I keep it locked up in these retirement plans? And the it reminds me, uh, the crash after a late you know, I I’ve got into the business a little bit after that, and I remember going to see this guy, he was months away from retirement. He had lost 300,000 in his in his retirement account. Wow. He’s like, now what are you gonna do at 65? You’re gonna work 34 years to make 300,000 bet? So to answer your question, you know, yeah, I I’m not anti-anything. I’m I I’m pro liquidity use and control.
[00: 36: 19 – 00: 37: 33]
And so wherever that and I just quickly, I give this example too. Like, Nicole, if you had a $100,000 in your bank, you knew it was in your savings account, and you went to the bank, and you said, hey. They’ll let you look and proceed. And what, 10,000? And they say, well, I’m gonna if you give me 30% of that, I’ll give you your 2 they might have to call security. Rent your money, and you want it now. But that’s what we’re doing when we’re putting our money in. Like, these are time and plans are ridiculous. I gotta wait until I’m 59 and a half for my money that I’m putting in faithfully, you know, I gotta get permission. You only allow certain times that I can take it out. I’m penalized if I take it out before. Panelize if I don’t put it back. Panelize if I don’t take it, it’s the ticket’s 9 and a half or All these on your own, what that’s ridiculous. So I’m pro. We can put the money wherever you wanna put it. But there’s my goal is that you put it to grow your tree first. Right? Yeah. Then you can take it out, jump back in the market. Market’s great. You know? Yeah. When it’s when it’s not great, we can take it out, put it you know, we’re just moving and kinda juggling around here, but we’re not just depending on one source, one form.
[00: 37: 34 – 00: 38: 33]
Okay. And so well, because the whole in real estate, the whole thing of is about not being a liquid asset at all. Right? But it’s such a powerful tool. And I hear what you’re saying is that just don’t put all of your liquidity into an illiquid asset because then you don’t have ability to access that. I’ve probably don’t follow that advice, but in any case, what is your ideal distribution in the perfect world? Like, percentage wise, you have your finances or whatever. You have a 100% of something. What percentage breakdown? It’s what different types of buckets and asset classes it’s kind of what you think would be like an ideal scenario to give you the best benefits of the different, you know, like, the benefits and growth of an illiquid asset, but then the accessibility of a liquid one, it kinda has, like, where each market has its own ebbs and flows, and it’s I don’t know. I know that’s a hard question, but do you have this?
[00: 38: 34 – 00: 40: 08]
That is a hard question because, right, it always changes. Everybody’s different. What I will say is standing. I think 15 to 20% should be saved wherever you save it is where you save it. You know, I think you should save it. for yourself to benefit first. But with real estate being ill illiquid, this is how I view real estate, right, like, the equity that you’re gonna gain in real estate, you’re gonna gain whether you have a mortgage or not. Right? So we’re not why would you lock all your money up in there? You know, I you’re gonna have the market’s gonna do what the market’s gonna do. It has nothing to do with so What you’re doing, it seems like a smart move. Yeah. I’m just obviously, I haven’t seen your complete financial picture, but would take the money out buy something and just keep going and keep going, and then it’s passive income. You know, you’re gonna get it when the market goes up. You can refi or get the home equity line. And just keep doing it over and over and over. But the biggest thing you wanna do is grow first, yourself, your eye cooked in your tree, and then we could start sprinkling apples to eat at other places. So it just depends on, you know, how aggressive you wanna be. or it should be. But I think this is an environment that’s really teaching that maybe you should look at something different. And I don’t I don’t like roller coasters. So I’m not getting I’m not getting on for the drop. People like this scummy. I don’t like that. I don’t wanna see my money do that. I’ll stand and wave and hold all the bag. I don’t wanna do that.
[00: 40: 09 – 00: 40: 29]
Well, actually, I used to be I don’t I just think I saw, like, roller coaster is probably a little bit less now than, but I was younger, but I don’t, yeah, I don’t think I want my money to go the roller coaster. I just want my money. And it doesn’t have to drop. It doesn’t yeah. It doesn’t have to. So — Yeah. Definitely. Okay.
[00: 40: 30 – 00: 41: 36]
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[00: 41: 37 – 00: 42: 26]
Well, actually, that leads us right into the next set the last set of questions at the end of the thing. Hey. You know what? Listeners, I need somebody to help me brainstorm a name for this last segment because I I’ve been doing this, what, since Mac. And I don’t have a name for this last it looks like the same three questions I ask every guest, and that’s what I call it every time I start. If anybody’s listening, can you help me brace for him to pay for this last segment? If you if I love your name and I pick it at, yeah, I’m used to work something with you. You’re some kind of prize or something. But I need I need a name. I’m tired to say in the last three questions, but anyway. So Warren Buffett said that diversification is protection against ignorant. And what do you think he meant by that?
[00: 42: 27 – 00: 43: 25]
I think it goes just to what we’re saying. Right? Like, sticking to just one thing, and you may not know you know, you don’t know what you don’t know, but when you don’t know, you’re ignorant. And so you’re missing out on other opportunities by not knowing and not having other things available, especially for your money. So diversifying is where you wanna be and what you wanna do. You played Monopoly before? Listen. I am embarrassed to look, but I do look. You’re the first speaker. I did some I this is awful. This is awful. Oh, I’ve never played with my so I want the second for your person using the licensure’s thing, but you are my first. Oh, man. Thanks. I don’t know. — excited about that. Listen. I don’t study the question. You said I don’t want it to be prepared. And I’m like, wait a minute. Why would you I needed to know. I I’ve never played, actually. Okay.
[00: 43: 26 – 00: 44: 28]
So now you’ve got a scrabble girl. I was a scrabble girl. Okay. You know what? That is forgivable. But the concept is easy. Right? So I’m sure in research you saw, Boardwalk is the most expensive property. Baltic is the cheapest property. If you were to play monopoly where you have to go around the board, like $200, you know, use your money to either buy the least expensive property, but getting lease rent, but you could build up your hotels and buy houses work faster because it costs less versus holding out to buy the expensive one where you’re it’s gonna cost you more money upfront, but your cash flow is gonna be crazy. I haven’t done ROI announced on monopoly. So — But in any case, if you were playing the real estate game, which I don’t even know if that’s is actually anything that you do. But what would you think that you would pick first to buy? Would you go ahead and get starting with the smaller cheaper property? or would you hold out until you could get the more expensive party with all of the extra cash flow?
[00: 44: 29 – 00: 45: 37]
Before my research, I would have said I’m on boardwalk. You know? Then when I understand how the game is played, I won’t bought it because it’s cheap now. I’m not gonna stay that way. Right? I can build up. I could make more money over time. Gentry no. I’m not gonna get your bike. But yes. You I I did the better opportunity. I’m going with politics, and I’m gonna go play monopoly, though. Okay. Yes. Now you gotta play monopoly. I think we Is there a virtual way to say monopoly? I’m not playing virtually. I need to figure that out. They’re shown. Somebody should have built that by now. Virgil is not playing with all this damn world. But, um, but, yeah, typical. I don’t know. That was that’s very I don’t know if there’s prejudice for me to say. typical black person wanna be bored. Yeah. By boardwalk. By boardwalk. Yes. Yeah. because we found it. It’s a blast. Right? Yeah. It’s not a west. We want fancy, want all the nice things, and that’s why we have so much consumer debt. I mean, lord wonk is different. That’s not consumer debt. That’s, like, actually good debt. But I digress. That’s not, you know, the statement. Go and greet. — now. Yeah.
[00: 45: 38 – 00: 46: 28]
What is the next step for you professionally in Blackwell Financial? Like, where do you see yourself and what is the biggest resource or thing you need now to help grow and get to that next level? I see expansion. Right? Like, I that’s a mention or I’m not the typical financial adviser. I’ve got merchandise on my side. Got a card game that I created, and I really wanna expand on that with workbooks and workshops and just different educational pieces where people can learn and really get these foundational money lessons that other people are kinda born into. And I think exposure, like, I just you know, tell somebody, send somebody. That’s what I wanna do. I just wanna help as much as I can as much as possible.
[00: 46: 29 – 00: 47: 12]
Perfect. Okay. I love that. And hopefully get some more exposure from this show. Guys, share this episode with so they can hear what Jamila has to say and really connect with her. And that’s the next question. How do people connect with you? You can find me at getblackwealth.com. That is my website. Everything’s on there. If you wanna schedule a consultation, then it’s free. We talk for 30 minutes and see, you know, what you have going on. Any recommendations and what we need to do to make sure we can get your apple tree growing. but, uh, get black woke.com. Okay. I love it. This episode, why’d you call something about apple cheese? I don’t know. Just click out there. Kevin case. intro.
[00: 47: 13 – 00: 47: 35]
Thank you so much for coming on. Like, this was really a great conversation. Yeah. That’s it. — letters. You know? I had fun. Yeah. Thank you. I’m glad we connected. I’m like you could touch. Yes. Please do. Definitely do. I’ll keep it with you as well. We see each other on LinkedIn and where else will be connected. And, hopefully, we do some more things together in the future. That’ll be great. Do it. Yeah. Alright.
[00: 47: 36 – 00: 48: 17]
Well, everyone, thank you for joining in with us today on today’s episode. And I hope that you really took some gems that Jamila was dropping. And pick them up, put them in your bag, and share the show, share the wealth, share this information. Don’t keep it to yourself. Like and subscribe if you don’t already do that. And leave a comment. Leave a review. Let us know how you’ve been liking the show so far and how you like this facility in particular. But in any case, thank you so much for, uh, for coming. I have to thank you. Thank you. Thank you for having me. Have a good time. Yeah. No problem. Alright, everyone. See you next time.
[00: 48: 18 – 00: 48: 42]
Did you love this episode of share the wealth show? Be sure to connect with Nicole by following her on LinkedIn to Instagram or Facebook. If you picked up any of the gems that were dropped by today’s guests, make sure you not only put them in your bag. But if you know of one who would benefit from this information. Don’t keep it to yourself. Share the wealth and make sure to leave us a rating and review. We’ll see you for next week’s episode. Subscribe so you’ll be notified.
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