WEBVTT
00:00:02.160 -->
00:00:38.939Hello, everyone, and welcome to the show. I'm your host, a Kiva Ellis, and today I am thrilled to have Steven Stack on the show. Stephens Stack is a financial coach whose mission is to help others build. We holistically. he is one hundred percent debt free, which includes paying off a six figure mortgage at the age of thirty two in just three years. He also became a millionaire by a thirty one through consistent money management, and investing primarily through real estate and the stock market. He believes wealth isn't just what's in your bank account, but also the person you're becoming, Steven. Welcome to the show.
00:00:40.326 -->
00:00:42.485Hey, and uh, thank you for having me.
00:00:43.119 -->
00:00:46.079Yes, I'm excited to have you on now. I would
00:00:45.625 -->
00:00:46.625Yeah,
00:00:46.320 -->
00:00:58.240love to dive right into your story, So tell us about your upbringing and how that affected your view on finances, and ultimately your journey to becoming the millionaire That you are today
00:00:59.625 -->
00:01:06.646so my, I can remember a lot of my really early memories Uh around money.
00:01:08.805 -->
00:01:36.646So my dad was an entrepreneur. He, he owned a furniture, re upholstery business, And so I can remember going back as far as four years old where I would sweep the floors and get get a little bit of money. Uh, for doing so, and for for me we grew up in Uh, in a household face. So one of the things I learned quickly was of what I made to be generous.
00:01:37.846 -->
00:01:42.566so I would always give at least a tenth of of what I made. Um.
00:01:43.605 -->
00:01:45.365but they taught me really early.
00:01:46.566 -->
00:02:19.466Uh, to make sure that I put aside money for a rainy day or rainy day fun today, people call it emergency fund. but uh, but the thought is you know, save it for a rainy day. Um, just in case, and don't spend more than what you make. So those were some of the building blocks for me when I started was be a giver and make sure to save money just in case.
00:02:20.566 -->
00:02:29.686Um that that really got me going in the right direction, So those are some of the foundational things.
00:02:30.000 -->
00:02:35.120awesome. So it sounds like you are having these many conversations at home on a somewhat regular basis.
00:02:36.885 -->
00:02:56.325Yeah, yeah, l, yeah, a little bit. Yeah, we. we would talk about that. Uh, I had an at least a little bit of understanding at an early age of the value of money that you used it for stuff. Um, this is about to be real controversial right here.
00:02:57.205 -->
00:03:19.286Uh, but uh w. we didn't believe in Santa Claus. My parents didn't tell us about that, so sorry for everybody that uh, grew up that way, or maybe raise your kids that way, Um, but so for Christmas, Uh, what that meant? Um, or whatever different holidays people uh would celebrate.
00:03:20.506 -->
00:03:29.545I knew that my parents worked, or particularly my dad, because by that point my mom wasn't working anymore.
00:03:30.406 -->
00:03:49.846Uh, I knew that they that they worked and managed money together, and they made it a point to have money to get gifts for my siblings, and I, uh, so it it was. It was more of a normalized conversation.
00:03:50.885 -->
00:03:54.566to uh, see that and you'll appreciate this.
00:03:55.306 -->
00:03:56.306that.
00:03:57.126 -->
00:04:16.165when I was in Grace school, I can remember being in middle school and my dad, now he's retired military, but they had like this like, kind of like a supermarket on the military base that was nearest to our home.
00:04:17.206 -->
00:04:21.286It was a place called the P. x. So people who know me know where I'm from.
00:04:21.446 -->
00:04:22.646they'll know about the P. x.
00:04:22.500 -->
00:04:23.500Mhm, Mhm,
00:04:23.526 -->
00:05:22.105So I'd slide through my mom would take me. I would buy candy like I'd buy like Bruot snacks. I had all the good candy fruit snacks, blow pops, laughfty, Taft. These nerves. What, whatever you can think of bubble gum? I'd buy that and then I would sell it at school to my friends, so I knew what my cost was and I would buy it. quote, unquote in bulk. They didn't really have you know, like Sams, and and B, js, and Costco. You know the big box retailers like that, so I buy it and I would sell it because I'm like Man, these are the candies I like And these are what my friends like and what was at school and what was available It. It really wasn't good candy like that. It was no disrespect. It was like worders and mints, A, and things like that. we ain't had a good candy. So I, I tried to fill a need
00:05:23.279 -->
00:05:25.519So you started this entrepreneurial husle from young.
00:05:26.639 -->
00:05:36.379Yeah, I'm sure. I'm sure the things in the Px were definitely heavily discounted, as opposed what you'd find in other places in in supermarkets outside of the base as well, awesome
00:05:35.605 -->
00:05:42.466right right right right. it was. there was no sales tax either, so that was right right right right. it was. there was no sales tax either, so that was that was nice as well, that was nice as well, right.
00:05:42.000 -->
00:06:01.680it. love it. So what was your turning point? I would say. Yes, you grew up learning about money, talking about money starting you, seeing your parents and entrepreneurial mindset starting your own side. Hustles as a child. What was that point like? When did you decide you wanted to be a millionaire? Was that like a conscious choice for you? What happened with that?
00:06:03.125 -->
00:06:05.446Yeah, so here's what happened. It? really?
00:06:07.125 -->
00:06:50.966it really really hit me in college, so my mentality was always thinking like this, of of of trying to build, but my parents are they. They were amazing in in so many ways for them their mentality was to be saver, so they weren't really investors And so I didn't investing for us Was putting money in a bank, C, D, or a certificate of deposit, where youd lock money in for a designated amount of time. The interest rate is what it's go to be, and when it matures, you get what you get from the bank.
00:06:52.005 -->
00:07:12.725Um, so I knew that I knew what I wanted to build, but didn't necessarily know how to build it And it really hit me hoard a late high school early college of just doing the math and say a man, I cannot save my way to wealth
00:07:14.660 -->
00:07:15.660So she came to that
00:07:15.466 -->
00:07:16.466and
00:07:15.600 -->
00:07:16.879conclusion independently.
00:07:17.925 -->
00:07:21.446R right Well because you know I'm a. I was a numbers guy. you know I,
00:07:21.060 -->
00:07:22.060Mhm.
00:07:21.685 -->
00:07:32.326I would look at those things and I just sat and I'm like Okay, If I saved twenty thousand dollars a year every year, never missed.
00:07:33.526 -->
00:08:07.846It would take me fifty years to have a million dollars, and for those who are listening, do the mad do twenty thousand times fifty, and it's going to say a million and I, and for me my mentality was meant. I wanted to be wealthy at an earlier age, so I'm like if I get into the working world around twenty one to two, I won't hit a million until seventy one or seventy two.
00:08:09.206 -->
00:08:22.326Just saving like this doesn't make sense, and I was like I need a better rate of return than what the banks are paying on their interest rates to sustain that.
00:08:23.526 -->
00:08:55.666So that got my wills turn in. and and uh to think about things like real estate and the stock market, And I was just crazy enough to tell people, Hey, this is what I want to do. I'm not exactly sure how I'm going to do it, Um, but I know the areas where I see people doing it. That makes sense. Um, so let me start with reading and then and then just trying to learn and figure it out.
00:08:56.080 -->
00:08:59.440That is impressive. First of all, it comes to such a conclusion on your own.
00:08:59.600 -->
00:09:21.279Nobody necessarily told you that investing was the way to build wealth. the power of compound interest That you had that illustration. You kind of came to that conclusion on your own, which is impressive in itself, so I commend you for that, and so on your learning journey you started learning more aboutves You mentioned. You started reading what other resources and tools that you use to learn about investing.
00:09:22.985 -->
00:09:41.446So one of the first books when I started talking about that, someone was like, Oh, you need to. You need to read this book. I think it's going to be helpful for you and someone said, I'll read this book Rich that poor dad and I was like Okay, All right Ill, I'll read it now. Full disclosure, I'm a keeper, Will, I'm sure it's helped a ton of people.
00:09:42.566 -->
00:09:54.725For me. It was infuriating because I'm like. I know I need to buy assets that grow. When are we going to get to the part where you tell me which one to do,
00:09:54.820 -->
00:09:55.820Mhm.
00:09:55.046 -->
00:09:57.285Robert, Which Robert Kosak is
00:09:56.899 -->
00:09:57.899Yeah,
00:09:57.285 -->
00:10:05.125the author. I'm I'm like Man, You, just you, tell me what the rich Da does, the poor det does. But, but, but how do I actually do that?
00:10:05.460 -->
00:10:06.460right,
00:10:06.966 -->
00:10:20.005So for many people who read that book it was probably very enlightening mindset, shifting for me it was very infuriating because I'm like man. I, I need the application, but I've got the mindset.
00:10:21.125 -->
00:10:45.125I'm looking for the execution, so that was kind of where I started, but I know a lot of people know that book. Um, and then uh, there's a book. The Millionaire next door, Really good book. I encourage any and everybody to read it. It will help you understand just millionaire habits.
00:10:46.645 -->
00:11:05.745A lot of people have a an inaccurate view of how uh, wealthy people bu and large tend to move through life, So that was that was helpful because I was already doing a lot of those things.
00:11:05.059 -->
00:11:06.059Mhm.
00:11:06.105 -->
00:12:12.005Um, but for for me, I started trying to invest in, you know, like pro programs, like coaching programs or ntership type things, trying to find something good to get going, Which, even though I actually do help people consult and coach, Which a big reason for why I do it is because I didn't get what I was looking for at that time, Uh, is, I tried some different programs and coaching type things, but I ended up connecting with somebody who was actually doing it that I knew that I actually was attending church with, and that helped. Me, get started in the real estate, uh, arena, and as far as the stock market, I just started with with just reading articles and things that I could find on the Internet. To just try to piece together what what does that look like?
00:12:13.846 -->
00:12:18.166And then I just started executing and and learned more from there.
00:12:18.240 -->
00:12:24.240Awesome, So did you start with real estate first, or did you get into the stock market a little bit of both, And you kind of learned as you went,
00:12:25.285 -->
00:12:27.285l, a little bit of both. Um.
00:12:28.505 -->
00:13:03.505I started with the stock market first, Uh, I just used a work sponsored account at that time, Uh, with a four o, one K, which, that's just where it is in the U. S. Tax code, for some people, that maybe be a four or three, B, Uh, if you work for a federal government, that might be a t, s. P. A through savings plan, Uh, et cetera et cetera. But for me I was working. I was working. You know, a corporate job at that time, And so I started with a four o win, K, and I.
00:13:05.125 -->
00:13:13.025The set up was if you invested six percent, you got a seven percent match, which is pretty good,
00:13:12.899 -->
00:13:13.899Say that's pretty
00:13:13.546 -->
00:13:14.546Um,
00:13:13.759 -->
00:13:15.039generous for today's
00:13:14.865 -->
00:13:36.405right, right, right, Um, And when I entered into the work force, it was in the midst of the great recession, so I'm like I don't know a whole lot about stock market investing at this time, but what I do know is if things are as bad as what they say it is.
00:13:37.605 -->
00:13:43.046If the market just gets back to where it was, I'm going to crush it.
00:13:44.966 -->
00:13:58.645So I did some kind of mix at the time of the terrible options that they had for my work plan, And then I bought some of that company's stock, so I think I was like ninety percent.
00:13:59.466 -->
00:14:20.485Uh, I think I was like ninety percent in equities, which for those there are, listen to think like stocks, Uh, and of of just uh, diversified like mutual fund type things. And then I had like ten percent in my company stock, and I just said I'll just roll with this.
00:14:21.066 -->
00:14:22.066Um.
00:14:22.725 -->
00:14:23.926Eventually I learned more
00:14:24.019 -->
00:14:25.019Mhm, Mhm, Mhm,
00:14:24.725 -->
00:14:52.885uh, and and started to get a lot more hyperfoed, But that's why I started in the stock market and then in real estate. I started with buying a property that I could fix or acquire, fix up and then sell for more than would I acquire my acquisition and repair costs, or people just call that flipping a uh, a property. So that was my start, and that was in twenty ten when I bought my first flip,
00:14:53.840 -->
00:15:13.279That's awesome. So really is a combination of you learning, and also just the timing that it happened to be with the market and you were able to just ride ride that way, And that really benefited you over time. And so you started with your four one K. You said with any other places that you invested money outside before would K. as your journey went on.
00:15:15.826 -->
00:15:46.405So eventually eventually I opened a Roth, i r a um for getting that tax free growth in a retirement account, and right out of the gate I was maxing it a hundred percent. Um. I'm I'm uh married. So then I opened a second one for my spouse and max that out a hundred percent. So that's been over a decade
00:15:46.659 -->
00:15:47.659Mhm,
00:15:47.046 -->
00:15:50.645at this point of just maxing out Roths.
00:15:51.225 -->
00:15:55.285Um, so that was one vehicle.
00:15:56.566 -->
00:16:37.206But then again, I knew I wanted to be wealthy and li in a way to where I'm not waiting until I'm fifty nine and a half. For those who don't know the distinction, That is the time where you can pull money out of a retirement account like a four o, one case, last traditional high R rate or a Roth I ara without a early withdrawal penalty, so for me I'm like Okay, this is good. I'm investing in these vehicles, These investment type accounts for retirement, but also want to invest some money for South of fifty nine and a half,
00:16:38.159 -->
00:17:34.480right'. Awesome. So, what would you say? Some lessons that you learned along right'. Awesome. So, what would you say? Some lessons that you learned along right'. Awesome. So, what would you say? Some lessons that you learned along right'. Awesome. So, what would you say? Some lessons that you learned along right'. Awesome. So, what would you say? Some lessons that you learned along right'. Awesome. So, what would you say? Some lessons that you learned along right'. Awesome. So, what would you say? Some lessons that you learned along right'. Awesome. So, what would you say? Some lessons that you learned along right'. Awesome. So, what would you say? Some lessons that you learned along right'. Awesome. So, what would you say? Some lessons that you learned along right'. Awesome. So, what would you say? Some lessons that you learned along right'. Awesome. So, what would you say? Some lessons that you learned along
00:16:38.225 -->
00:16:52.645because I believed that there, if I did the numbers right, that I could be quote unquote retire Rabo by age forty five.
00:16:53.785 -->
00:17:29.365Now what I could not have anticipated was that real estate, some of the stock positions and things of that sort would end up going up dramatically more than what I had anticipated, Hence becoming a millionaire at thirty one, or making make him up first million at thirty one, Um, and then just going ahead and payin off my house, Uh, at thirty two, which was back in twenty eighteen.
00:17:34.799 -->
00:17:44.240your wealth building journey? If you look back from where you were when you your wealth building journey? If you look back from where you were when you your wealth building journey? If you look back from where you were when you your wealth building journey? If you look back from where you were when you your wealth building journey? If you look back from where you were when you your wealth building journey? If you look back from where you were when you your wealth building journey? If you look back from where you were when you your wealth building journey? If you look back from where you were when you your wealth building journey? If you look back from where you were when you your wealth building journey? If you look back from where you were when you your wealth building journey? If you look back from where you were when you your wealth building journey? If you look back from where you were when you got that spark in college to now where you are today? What is some important got that spark in college to now where you are today? What is some important got that spark in college to now where you are today? What is some important got that spark in college to now where you are today? What is some important got that spark in college to now where you are today? What is some important got that spark in college to now where you are today? What is some important got that spark in college to now where you are today? What is some important got that spark in college to now where you are today? What is some important got that spark in college to now where you are today? What is some important got that spark in college to now where you are today? What is some important got that spark in college to now where you are today? What is some important got that spark in college to now where you are today? What is some important lessons that you think you've learned?
00:17:42.720 -->
00:17:44.240lessons that you think you've learned?
00:17:42.720 -->
00:17:44.240lessons that you think you've learned?
00:17:42.720 -->
00:17:44.240lessons that you think you've learned?
00:17:42.720 -->
00:17:44.240lessons that you think you've learned?
00:17:42.720 -->
00:17:44.240lessons that you think you've learned?
00:17:42.720 -->
00:17:44.240lessons that you think you've learned?
00:17:42.720 -->
00:17:44.240lessons that you think you've learned?
00:17:42.720 -->
00:17:44.240lessons that you think you've learned?
00:17:42.720 -->
00:17:44.240lessons that you think you've learned?
00:17:42.720 -->
00:17:44.240lessons that you think you've learned?
00:17:42.720 -->
00:17:44.240lessons that you think you've learned?
00:17:46.486 -->
00:18:05.346So the biggest thing that I can encourage people with just from a mentality standpoint, Because this this willll help you is two things. number one billed from I dentity, not for identity.
00:18:06.645 -->
00:18:10.165And what I mean by that is the wealth. The stuff.
00:18:11.526 -->
00:18:14.086Don't let that be the thing that defines you.
00:18:15.685 -->
00:18:31.365Be assured in who you are before that that that'll That'll help you tremendously to push aside some of the distractions that would keep you from building well. And plus it'll just help you be a better person when you do get there.
00:18:33.046 -->
00:18:38.905and what I would say goes hand in hand with that is live a life of contentment.
00:18:40.865 -->
00:18:53.685And so for for me from age from age eighteen to twenty nine, I drove a two thousand four Honda civic.
00:18:55.046 -->
00:19:07.365Now the video's on So you see my face, but you don't see my frame. I am six foot one riding in a Honda civic.
00:19:08.806 -->
00:19:51.605It is not a large vehicle, but it was. It was a paid off vehicle and it was light green. Like if if I could, I'd pull up a picture of it. So you all ca see it and for those who may be listening, you just have to imagine it's light green. Two thousand war Hondasic, six, one brother, who you know has a you know athletic past, too. You know what I mean, so I'm I'm sitting there, Just cruise it, but my mentality was Hey, I know where I want to be and I know who I am.
00:19:53.046 -->
00:19:57.365They say the the soup makes the man. I say No, the man makes the sup.
00:19:59.925 -->
00:20:46.006Same with the vehicle I'm like Yo. I don't. I don't care what kind of car you put me in if it gets me from A to B. I'm still all of me because I know who I am so just getting the mindset stuff is good. Now a practical thing for people that are listening like okay, man, I think I got the minde said. Don't don't do me like rich. aport ad man, tell me what to do. Um, automate your investments for many people. That'll start with picking a percentage in your work retirement plan that will automate your investments on whenever you get paid. If it's every two weeks. If it's every fifteenth and thirtieth.
00:20:47.205 -->
00:20:51.846You've got money going into the market and you're not even thinking about it.
00:20:51.766 -->
00:21:01.526It's just automatically happening if your job does not have that doesn't have that type of option. Guess you can open an account for yourself.
00:21:01.766 -->
00:21:17.685You can open a traditional I r Ay. You can open a wrth i r ay to at least get the ball rolling in automate your investments. So if you say man will stack you a millionaire, I ain't got it like that.
00:21:18.885 -->
00:21:50.405Well it, let's say you've only got a hundred dollars that you can do a month, realistically do a hundred dollars ought, To make that pick a day of the month. It could be, could be the tenth, the tenth of the month. You pick it automated to where the money comes out of your account goes into an investment account, and you can pick what Uh, what you want to buy if you're unsure what to buy. I'd say start with just something that's very diversified.
00:21:51.526 -->
00:22:11.046Um, you know things like mutual funds index funds, Um, Those, those willll be solid if those go to zero. Which way? I'm just giving it a real. If those go to zero, that's not a world you want to live in anyway, but you can't afford to not invest.
00:22:13.440 -->
00:22:23.200So now that you have achieved millionaire status? Would you say that you faced any unique challenges now as a blackalth holder, specifically
00:22:26.645 -->
00:22:29.986It's that's It's an interesting question.
00:22:30.665 -->
00:23:01.026Um, you know, sometimes I'll come across folks that they may not be able to really handle that. Oh man, like this guy is really wealthy, or they may be trying to project their own thoughts in images of what they believe on me. So you know I'll deal with things like that, but again this is why I say it's so important to build from identity, not for it.
00:23:01.766 -->
00:23:08.486because otherwise you always have people that will be doubting you. It does not matter what level you reach. quote. Unquote.
00:23:09.766 -->
00:23:26.965If you haven't settled it in your own heart and mind of this is who I am, then you'll always be getting yanked and jerked around every other direction at at the besthest and whim of other people.
00:23:28.486 -->
00:23:37.586Settle it in your heart in mind to know who you are, which you do have value. You do have dignity. you do have worth.
00:23:38.806 -->
00:23:40.405please. please, please know that
00:23:42.880 -->
00:24:03.359Aese, love timeminder, and so in your life today or long your journey? Have you worked with financial professionals of your own? Whether that's a financial advisor and count and attorney insurgent type professional is, have you worked with anyone before and how have those experiences been?
00:24:05.766 -->
00:24:25.365yes, I have. um, I'm I'm a believer that I don't know everything. I think it's it's wise to have counsel. Have you know many quote quote advisors, and I'm not even necessarily saying that From A have a financial advisor standpoint just half people who know what they're talking about.
00:24:26.965 -->
00:25:01.286you know. I, even though I know a lot about tax law, I still will work with the C. P. A, because I don't eat sleep, breathe taxes, and there's little nuances and things that' change. So I'm more than fine and have worked with Uh professionals in the past, And there's multiple ways you can do that. You can, uh, do it where you're working with someone. that's a fiduciary. where they are, they're binded to really do what's in your best interest.
00:25:02.326 -->
00:25:07.445Um. You can work with people where they're getting a a percentage of your assets under management.
00:25:08.026 -->
00:25:36.726Um, or you may have someone where you're doing your insurance through them like life insurance, Uh, et cetera et cetera, I mean, I have life insurance. Um, so I've had. I've had pretty positive experiences overall. Um, I do know a lot about Uh, money and wealth building. Uh, so it's not.
00:25:38.246 -->
00:25:42.246It's not wild for me to know more than than others do.
00:25:43.365 -->
00:25:53.925but again, I'm still willing to to stop and listen and hear what folks have to say, 'cause you just never know. you never know they. They may uh, know something that that you don't. so,
00:25:55.599 -->
00:26:05.200And so who exactly you mentioned to work with a Cpa You've worked well with a life insurance agent. At some point are the other professionals that you are currently working with today?
00:26:07.145 -->
00:26:32.566Um, At this point from an a superactive perspective, not necessarily, um. I do have a lot of friends in the financial arena, Um, but at this point I've got a really good handle on on just where where I sit where I stand.
00:26:33.226 -->
00:26:39.205Um, and I'll more so reach out if I have specific questions
00:26:39.140 -->
00:26:40.140Mhm.
00:26:40.326 -->
00:27:01.685on things of saying. hey, I, I wouldn't mind some some some counsel here in this area. This is a move I'm considering doing. Here's my rationale for why. uh, what do you think, and rolling rolling from there, Because I still think it's good to bounce things off as much as I'm aware of.
00:27:02.806 -->
00:27:13.125Uh, I know there's still so much that I don't know, and that will always be the case. I will be a lifelong learner. So hopefully that that helps
00:27:14.000 -->
00:27:28.660Yes, it does, And so what would you say Are some values that you have or factors that you look for if and when you hire different types of financial professionals? What is important to you in seeking and establishing those relationships?
00:27:29.605 -->
00:27:59.665so, but mean the first, the first things, or just just from a person like, do you move with character and integrity? Like, what kind of person are you? Uh, The reality is I can. I can make money a lot of different ways. I can make money on my own. I can make it with a bunch of different people, so it matters to me who I'm associated with. Uh, so that's kind of a first peace thing, because I'm like Hey, if you, if you got some character and integrity, that's kind of.
00:28:00.326 -->
00:28:07.685that's the basics. or some people would call that table stakes, which just means it's the basic things that hold the table up.
00:28:08.266 -->
00:28:12.965Um, then from there, Obviously I'm looking for competency in that area.
00:28:14.086 -->
00:28:24.405Like what? what have you done? What are you doing? who do you work with? What are some of your results? Uh, an extra added bonus.
00:28:25.605 -->
00:28:26.965Is it working for you?
00:28:30.086 -->
00:28:40.965Is it working for you now? this may be a high bar. Not everybody wants to do it. Uh, like not every professional wants to do it. but even asking, hey, how much are you worth?
00:28:42.405 -->
00:28:52.965They don't have to disclose this. By the way, they do not have to. Uh, but if I'm going to bring multiple millions of dollars, Potentially your way.
00:28:54.006 -->
00:28:55.766I want to know who I'm dealing with.
00:28:57.125 -->
00:28:59.526Are are you someone that you just did the training?
00:29:00.726 -->
00:29:03.046But but you don't know what this looks like?
00:29:04.486 -->
00:29:15.306Um, So that's that's for me. now that that may be a little bit more strenuous than than the you know, Uh, typical person. But I wanted to answer the question just for me.
00:29:15.599 -->
00:29:37.440Yeah, and there's no wrong answers here. Right, everybody is going to look for different things based on their personal values and their their experience with with their money. And so that's all helpful insights to have. Are there any other factors, whether thegphics or sizes of companies, or anything like that, other values that you might be looking for as well?
00:29:40.246 -->
00:29:58.006I'm not as concerned about the size just just because I believe if you do good work and you know what you're doing, then it. It doesn't matter if you're working for Goldman Sachs or it's your name on the for for the firm or or whatever it is that you're doing. Um.
00:29:59.526 -->
00:30:21.445I, it is nice to work with people that looked like me as well. I do. I do appreciate being able to do that for a myad of reasons, especially just knowing some of the historical contexts of black people and money in America. Um that those would be things that I would think of as well,
00:30:22.960 -->
00:30:34.319So now that you have grown your willalth to the point that is at today, do you find yourself asking different types of questions or in need of different types of advice than you had previously,
00:30:37.586 -->
00:30:41.125yeah, um, i. it.
00:30:42.405 -->
00:31:42.465I want to understand things from beginning to end of what is happening in a given scenario, and some people would say that are just another way of saying is understanding from end to end, and I have a personal philosophy that says I won't invest in anything that I do not understand because I've done that before when I was in college. I think I had around like fifte hundred dollars, and talking with somebody did some type of investment that was real estate oriented, but I didn't really understand it of how how all parties would make money. I just kind of heard the in process for me and it didn't go well like actually, all the funds were were lost, which I mean, you know, fifteen hundred dollars in college Iss pretty good sum of money.
00:31:41.619 -->
00:31:42.619Mhm?
00:31:42.346 -->
00:31:47.766Um, Now, much respect to the guy that I worked with He.
00:31:48.885 -->
00:32:10.066He just paid me back off the strength set like he, just man, It didn't work out, and he he like, just paid me back over time, which he did not have to do that. He did. Um, but I learned a valuable lesson there that I want to understand what I'm investing in, and I believe things don't have to be that complicated.
00:32:10.885 -->
00:32:18.326Like, if you can explain it to an eight year old or a ten year old, which, by the way you know, my I'm I've got a nine year old.
00:32:19.766 -->
00:32:45.846Um, I can explain essentially everything I'm invested to her in a way that she can understand what it is. how it makes money, as she may not understand all the intricacies of it, but she has a fair understanding of how money is made, and I believe that that let's just be reforce. I
00:32:45.779 -->
00:32:46.779Mhm,
00:32:46.145 -->
00:32:47.145just real real real.
00:32:48.885 -->
00:32:52.405The stuff that tends to make the most money is simple,
00:32:54.380 -->
00:32:55.380Yep,
00:32:54.746 -->
00:33:00.006so not investment advice here. But I'm just going to talk for a second.
00:33:02.726 -->
00:33:06.246Apple has this thing called the iphone. It's very simple.
00:33:07.526 -->
00:33:30.566people have airpots. They have wearables, you know, like a smart watch. It's really simple to understand their products how they make money. that they have subscription services like Apple music, and different things like that like ultimately. It's not very difficult to understand their business.
00:33:31.685 -->
00:33:56.165In the last five years, it's gone up six, x, especially if you include reinvesting the dividends. So a lot of business is simple, the investment. So so that is a question that I'm a stickler on it. How does this actually make money? And no, don't try to talk over my head.
00:33:57.365 -->
00:34:02.405Give me practically from end to end. How does this make money?
00:34:03.445 -->
00:34:15.126How do you make money? Because I want you to. If you provided me with a service, I want you to make money. You're you're. You're providing something that as valuable for me and so you should win.
00:34:15.865 -->
00:34:21.606Uh, but that's I'm more laser focused than those questions.
00:34:22.960 -->
00:34:29.840are there any unique needs that you say that you have now, at this stage of your wealth building journey than you would have had years ago?
00:34:31.786 -->
00:34:58.806Um, I pay attention to impact, so it's not just making money, but what kind of impact does this leave in doing so and again, especially I'm a more community oriented person in general. I care about people in general, and and uh, black people in particular, very much so.
00:34:58.965 -->
00:35:18.186and want to see us do Well. It doesn't mean I don't like other people. I love other people. for sure. Uh, I want to see us win. So I do look at things like Impact, which is more legacy driven, Big picture focused that that matters.
00:35:18.639 -->
00:35:26.639Yeah, and talking about legacy, so you mention you. Have a nine year old. How are you setting up your daughter for financial success?
00:35:28.806 -->
00:35:39.126So we just we talk about like we normalize talking about Uh, money and finances and saving spending investing.
00:35:40.326 -->
00:37:01.626I actually wrote a book with her last year called Simple money talks and it just it's just a walk through of conversations she and I have had around money. And so I just take a few scenarios where you actually see us talking or or like you read about us talking, and then I break down. What was the significance of this conversation? What was the lesson uh, to be had here And it's not just like. It's not a book to just be for kids or folk people with with children like parents. It's really for anybody to have a basic foundational understanding of money management living within your means. putting money aside for a rainy day, Uh, investing. What does that look like? What is a stock or a share? Y, You know what I mean like, just a, at least lightly touch on these things to normalize it and give people ideas of how to have these types of conversations like she and I have had of like. So, for example, I'll purposefully go to the bank.
00:37:02.885 -->
00:37:19.606Take her with me and have her count cash and give it to the bank teller to deposit it. Because she gets a lot of examples of what spending money looks like, you know with the grocery store,
00:37:19.380 -->
00:37:20.380Mhm,
00:37:19.766 -->
00:37:21.126or you know, just buying things.
00:37:22.246 -->
00:37:34.246But to normalize putting money aside to normalize investing and say, Hey, look at your portfolio. It is up.
00:37:35.766 -->
00:37:46.266All we did was click some buttons to buy, and now it's worth more than what we put in that is investing.
00:37:47.686 -->
00:38:12.326So we do that and she's the. she's a co author on the book. Uh, so I always say she is my favorite co author. Um, you know, I mean to kind of pull her into that because even with the you know with the books like like, Oh, you know people like this. they're actually buying it. You know. which kind of exposes her to things like entrepreneurship as well, So a lot to your question
00:38:12.659 -->
00:38:13.659I
00:38:13.146 -->
00:38:14.146doing a lot
00:38:13.360 -->
00:38:21.679love it. I, all of that and it's no surprise to me that she already has an investment portfolio up and running at the age of nine is awesome.
00:38:22.266 -->
00:38:23.266right.
00:38:23.519 -->
00:38:28.480awesome. So you're not only a wealth holder, you also a financial coach, right. so, in your
00:38:28.346 -->
00:38:29.346Yeah,
00:38:28.639 -->
00:38:44.800opinion, from the perspective, but also from the financial coaching and professional perspective, what do you think financial service professionals should know when working or seeking to work with black clients and black wealthy clients in particular.
00:38:48.266 -->
00:38:57.206be be a teacher, being an educator. Don't just tell people what to do.
00:38:58.405 -->
00:39:00.246Explain to them. Why?
00:39:03.126 -->
00:39:11.445so a lot of times if you're working in this space like you've probably noticed this. Even in this interview I'm defining just about everything
00:39:11.519 -->
00:39:13.360And I, it. I' noticed that,
00:39:14.485 -->
00:39:30.005right and it'scause I'm a teacher at heart. like I want to see people win and understand, and much of much of what trips people up with money, and in in particular investing, it iss just not understanding the terminology.
00:39:32.246 -->
00:39:38.726You know what I mean like. Oh, yeah, you know you want to have a diversifiedy portfolio and you know, make sure your asset allocation. Like. What?
00:39:38.460 -->
00:39:39.460Yep,
00:39:40.565 -->
00:39:43.606what? what? What did he just say was that you know
00:39:42.480 -->
00:39:44.559expenseti. What is that I don't
00:39:44.425 -->
00:39:45.425ru.
00:39:44.699 -->
00:39:45.699understand? Yeah,
00:39:46.166 -->
00:40:36.346say what Versus It's like Hey, don't put all your eggs in one basket, spread out where your money goes? Yes, you won't get as much winds on individual stuff in the St. but you won't get as much losses on individual stuff in the basket. That's That's things like diversification or asset asset allocation Of saying, hey, I'm invested in different things. I'm uh, y. You may have equities or bonds and individual stocks, mutual funds, which just think like a bundle like P. People even be like. What do you mean a bundle like? Like your your phone sell like your cell phonee? Internet and T V is in a bundle. The three of them are wrapped together.
00:40:37.206 -->
00:40:52.485so you get the three or one. But maybe what you're actually buying is the five hundred and one or the one hundred and one or the one thousand and one. You know. you know. if you're buying like different indexes and things like that, so explain to people what the stuff means.
00:40:54.085 -->
00:40:55.286They'll appreciate it.
00:40:56.405 -->
00:41:04.425and plus, when when the market retreats, which it will, it will retreat.
00:41:05.126 -->
00:41:08.565It goes up more than it goes down. But it does go down.
00:41:09.766 -->
00:41:32.905then your clients won't panic and be blowing you up. Talk about what did? What did you advise me to invest in? They'll actually understand Okay, Well, I'm buying quality. Maybe I should throw a little extra money here instead of blowing up stack, or Ceba, or whomever, and say it. Oh, I need to sail.
00:41:33.666 -->
00:41:34.666Get me out.
00:41:35.925 -->
00:41:37.045Investing is a scam
00:41:39.340 -->
00:41:40.340I love
00:41:39.925 -->
00:41:41.925so educate, educate, educate,
00:41:42.880 -->
00:41:47.519it, love. it. Is there anything else that you would say is important for financial professionals to know
00:41:50.085 -->
00:41:52.485continue to learn. Don't think that you know everything.
00:41:54.085 -->
00:41:56.085'cause uh, dirty, low secret. you don't.
00:41:58.085 -->
00:42:09.126uh, if you think you do, that's not a good place to be in. You don't want to be the smartest person in every room that you're in, so continue to learn.
00:42:10.166 -->
00:42:31.365the more you learn, the better professional you'll be for your client. So it's it's good for you, but I could argue. It's also one of the most selfless things you can do is to actually push and learn and I'll personalizes for me, as I know we're starting to move towards the end. Is.
00:42:33.846 -->
00:42:40.065I know, I don't for what my portfolio is. Technically, I'll have to learn anything.
00:42:40.806 -->
00:43:01.045you know. what I'm just saying For me personally, I could sit back and just ride this market and be good, but I want to learn. I want to know more. I want to be more equipped to help others be able to win, too. It's not just about me and minds.
00:43:02.166 -->
00:43:07.106I want to see us all when I believe that we all can.
00:43:08.885 -->
00:43:25.846That if if you're winning, it doesn't mean that I'm losing or vice versa as a financial professional Like we've we've gotten Im get on a brief soap box. Here's my mentality.
00:43:27.445 -->
00:43:31.686I don't want to seek to compete. I want to look too complete.
00:43:34.965 -->
00:43:38.885Say warm more time. I don't want to seek to compete.
00:43:39.925 -->
00:43:42.545I want to look to complete.
00:43:43.606 -->
00:43:47.445How can I potentially help you be in a better space?
00:43:48.726 -->
00:43:52.565Because I genuinely believe we all can win.
00:43:54.545 -->
00:43:55.545We all can With
00:43:56.480 -->
00:44:05.440that my final question for you today is in yours our opinion. what can the financial services industry do to help close the racial wealth gap?
00:44:08.005 -->
00:44:09.126whoo, man,
00:44:08.960 -->
00:44:10.159Loaded question. I know
00:44:10.565 -->
00:44:12.565good lord, you saved this for the hand
00:44:12.880 -->
00:44:14.559listen, going out with a bang,
00:44:15.525 -->
00:44:19.925may just pull the pull the pin up the grenade and just th it good is gracious.
00:44:20.585 -->
00:44:21.585Um.
00:44:23.606 -->
00:44:29.686The the short answer really would be we. We got to meet our people where they're at.
00:44:30.806 -->
00:44:54.166We've got to educate. we've got to educate. Youve gotta understand just it's it's not enough to just know your products. You got to know the people you're dealing with like you think about. Historically, for our community, we are overfunded in cash, which is a depreciating asset.
00:44:55.766 -->
00:45:01.686A K. A. the value of cash keeps going down. It keeps losing value every day.
00:45:02.405 -->
00:45:13.525That's called inflation, which, if you don't know what inflation is, it just means the cost of mil. The cost of going to the movies is more to day than it was when you were growing up as a kid.
00:45:14.965 -->
00:45:55.365The dollar doesn't go as far, so we're overfunded in things like cash, and a lot of it is from from scarcity from trauma. of Hey, I want to keep my money close to me. Uh, I don't want to put my money over here in this investmentcause. What if this thing happens or Sc? If you buy quality, If you invest in quality, you will win more than likely. you know, I'll give the the little caveat There. You know history may not perfectly repeat itself, but it rhymes Bu, quality by quality with your fundscause. If you keep it in cash, you will one hundred percent lose your money.
00:45:56.485 -->
00:46:31.126One hundred per cent. It's going down so pro financial sionals, we need to meet our people where they' at fine, creative ways to connect the culture to Welsh building so that people understand that's going involve reading. Paying attention talking to people slowing down, slowing down, which, getting your own financial house in order will help you too slow down, cause you won't be running this rat race.
00:46:32.485 -->
00:46:51.445You say hey, I can slow down. I'm in a good spot. I'm not fighting to get out of the quick sand. I'm already on stable ground and let me just thoroughly and deliberately pull people out so that that would be my flourish there on the last question.
00:46:52.480 -->
00:47:04.239Love. well, Ste, this has been so inspiring and I am so grateful for all of the teaching moments that we've had throughout this episode as well. so please, before we go, let our listeners know where they can keep up with you,
00:47:05.925 -->
00:47:26.005So for for my social media folks, you can find me on Instigram or I, G, or Facebook, Act, stacking with stack, So stacking with a G with stack. No underscores, no doubts. No, nothing to stacking Wtack, Uh, that's my handle.
00:47:26.806 -->
00:47:47.306Uh, my webite is Stephen l stack dot com, Stephen with a v, l stack s t a c, k, dot com, and when you pull it up you'll see my face on there. I'm not catfish in anybody. That's actually me, uh, and uh, we can build from there
00:47:48.159 -->
00:47:50.719So I thank you so much for joining me today, Stephen.
00:47:51.925 -->
00:48:00.726You welcome and sincerely, thank you for having me Uh. From from what I've seen you, you're doing a lot of amazing things and I just want to salute you.
00:48:01.219 -->
00:48:06.139thank you so much Right.
00:48:06.800 -->
00:48:08.079just stop the recording.
