WEBVTT
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Welcome back everybody to the Self-Directed Edge podcast.
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I am your host today, Joel Landon, coming at you from Heritage IRA, and I've got a fantastic guest with us today.
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I've got with me today Matthew Fermanic.
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Matthew, how are you doing?
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Doing well, I'm doing well.
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How much self?
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Good.
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I've actually been looking forward to this podcast episode because obviously we work together.
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I think our listener is gonna hear a little bit about that.
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They're gonna hear about you, what you do for the company.
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Um so I've obviously got the pleasure to work with you and hang out with you virtually uh pretty much every day.
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Um, but also you're gonna bring a really unique perspective to today's episode because what the listener may not have noticed, maybe they're just listening and they can't see you, but you're 22 years old and you are a quote unquote young professional.
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And uh, we're gonna get your take on several um questions, uh, several topics as it relates to retirement and and what that looks like for the younger mind or the younger generation.
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So super happy.
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Welcome to the self-directed edge, the podcast for investors who want their retirement capital doing more than sitting in the market.
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I'm your host, Joel Landon, with Heritage IRA.
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Super happy to have you.
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Um, you know, it I think it goes without saying we always kick off this podcast with a little disclaimer, but everything that our listener is going to hear today is uh just purely conversational, right?
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Um we're gonna drop some educational bombs here and there, but uh we we want everybody to know that this is purely for your uh entertainment, for your education.
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And if uh you, the listener, ever wants to go out and make a decision, uh, like unto some of the decisions that we've made here professionally, it's gonna be up to you.
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You're gonna need to go do your own due diligence, you're gonna need to consult with the right professional.
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So we always like to just remind everybody that's listening um that again, this is uh purely an opportunity for us to just share experiences.
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So uh with that out of the way, Matthew, why don't you take a minute, just talk a little bit about who you are, tell us where you live, where you're from.
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I know you've moved around um and kind of give us a little glimpse into what you do uh day to day.
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Totally, totally, yeah.
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Uh first of all, thanks for having me, Joel.
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It's an honor to be here with you.
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And um, yeah, an everyday process is you know, I'll I'll back up.
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It's it's been a roller coaster.
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Like you said, it's a lot of moving around.
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Um, I'm locally in Ohio now, so um it's it's been a journey, and and what I like about the journey is I've seen countless types of people.
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Um young, old, you name it.
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It's it's really given me an opportunity to connect and relate with anybody.
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I mean, you name it.
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So um very blessed and very very thankful that I've been able to relate and and talk with a lot of these folks.
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Um and you know, backing up, it it's I'm thankful to be very, very knowledgeable in in different areas.
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I will say that.
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That's awesome.
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No, I I appreciate that.
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I've I've spent time with you again in the office, let's just say, but also I've spent some time with you outside of the office in person, getting to know you.
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And um, I think that's what really helps you.
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You know, you brought up that you've uh you've been around.
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I know you've lived in Texas, you're currently in Ohio, you've you you've had some great experiences um in the workforce and just even within your family um that you shared with me.
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And I I think it's kind of uh put you ahead of the curve, so to speak.
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Most 22-year-olds haven't had the the chances and the opportunities that you've been blessed with to uh to be where you are.
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And I think that that really plays well for you and the interactions that you have with our clients every day.
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And and we're gonna talk a little bit about that.
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But um, you know, tell us a little bit about your job role here at Heritage IRA.
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Obviously, we both work for heritage.
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Uh we're we're both uh client facing.
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That's one thing that we have in in common, right?
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We interact with clients every single day.
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Um, why don't you talk a little bit about you get into work, what do you do?
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Totally, totally, yeah.
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So um a lot of what I do is, like you said, client facing.
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Um, and you get all types of clients, folks who are new to self-directed, folks who have been in the industry for countless of years and they and they know they are very familiar with how things work.
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Um, so a lot of what I do is just connecting with these individuals, getting them brought on board to Heritage.
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And that really just entails, you know, funding your IRA, whether that's a rollover, a transfer, a contribution if you're eligible for this year.
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Um just a lot of different avenues to explore with the IRA.
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And my job is just to iron that out with the client and understand what they're trying to do and how they're going to accomplish it.
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Um a big name that we talk with is you know a Charles Schwab.
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That's that's of course everybody knows that one, a Fidelity even.
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Um, and you can even throw in your Inspiro, you can throw in your directed IRA, the the non-so talked about folks, but it's there's a lot of different types of clients that you're going to be facing.
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My job is just to make that as seamless as possible, dealing with whoever, whatever, whatever it's a time thing, a a bump in the road, as I would like to call it, with the custodian, but whatever it is, I I try and make that the best possible experience for our clients.
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That's awesome.
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Yeah, and I can validate that you do.
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You make it a really, really good experience.
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Anybody can go to uh Google Reviews, they can look up Heritage IRA and they can see your name there on those five-star reviews because you really you're you're essential to that client experience.
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I'll I'll put it this way for the listener.
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You know, uh a lot of individuals will come to our ecosystem, they'll come into our environment, heritage IRA, and set up an IRA.
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And that first initial setup is motivating, it's exciting.
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The clients taking that first step to accomplish some of their most uh important retirement and investing goals.
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And then once that first IRA opening step is done, it's like the honeymoon phase tends to wear off a little bit.
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And you are that person that is helping them move on from that honeymoon phase and really get into the meat and potatoes of their IRA investing journey, right?
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You're doing that onboarding, you're guiding that client through that funding, which can it can be challenging.
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And you do most of that heavy lifting.
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And it, I think for the for the everyday person, it it's easy to overlook or not recognize how much heavy lifting really goes into getting that IRA funded that you help our clients with.
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So I just want to validate all of uh what you just said and how essential that role of yours is in the company.
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So thank you.
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Thanks for kind of highlighting a little bit about yourself, where you live.
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Um, and and I mentioned this early on.
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You're younger, you're 22 years old, and you you are a young professional.
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I've had the joy of working with you, like I mentioned, and I've seen you uh develop quite a bit and um not just professionally, but I've also uh picked up on some of the things that you've done personally, um, specifically on the financial side uh to prepare yourself for retirement.
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So I'm gonna ask you some questions uh and we're gonna hear some answers from a young professional.
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I know we have some folks in our audience that are listening that are young and they're really looking for guidance.
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I can tell you right now, my 18-year-old daughter, she's looking for as much guidance as possible right now, right?
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She's at that point, that fork in the road.
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She's a senior in high school.
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She's she knows she needs to make serious decisions or at least start making some of those serious decisions as she moves into young adulthood.
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So um I'm gonna hit you with some questions here and and let's just see where these take us.
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So you're 22 years old.
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Uh what made you start thinking about retirement now as as a young as a youngin', uh, instead of saying, I'm gonna worry about it in my f until I'm you know 40, 50, even older?
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What what what kind of helped you make that decision, if you don't mind?
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Totally, yeah.
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So um it's very easy to to push off, right?
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Like you said, it's a it's something that's gonna happen in 40, maybe 50 years.
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Um, and it's it's not a priority for a lot of folks.
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And what I started to do is just build a habit.
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Um, you know, I didn't start with a lot, uh it was just more so five dollars.
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Um, then that five dollars led to fifteen dollars, fifteen dollars led to twenty-five.
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I mean, it it doesn't have to be a lot of money, but what I will say is it's it's the time that matters.
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Um you know, like you said, it for a lot of these younger folks you're getting out of high school, you have literally the entire world in front of you.
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I mean, you have so much time, you're not thinking about retirement.
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I mean, you you want to go have fun with your buddies or you know, go go travel the world or or do something to where you know that you want to take advantage of this time now, your younger years now.
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So I'd encourage folks to five dollars, ten dollars.
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I mean, dip your toes in it because when it comes that time where you are twenty-five or thirty even, you're gonna look back and be like, Wow, that fifty dollars that I was putting away when I was twenty-one years old, it it's benefiting me now because not only did that grow, potentially grow, but you don't have to start from square one at 30.
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You know, you benefited your future self by starting young.
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Um, and that what I that's the main point I would say.
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I love it.
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I I wrote down a couple of things and I it's kind of cool because I don't know if you picked this up somewhere, if it like came from the heart, but you said it's the time that matters.
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And you know, it it's kind of cool because I think somebody could walk away from this podcast episode and just replay that thought or that comment in their head often.
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And it's it's applicable in so many realms of our life, but um I think you really hit the nail on the head.
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People talk about compounding earnings or compounding interests.
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And if you do have that runway, right, if you can start early on and um give time the opportunity to help you grow what you put away.
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You even mentioned just start small,$5,$10,$15.
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Even at the those small increments, if you give it that runway, if you give it that time, um, you know, those I'm 40 years old.
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I I've done stuff like that, and and I've seen that compound over time and 20 years go by and they go by pretty quick.
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You recognize how those small contributions have made a significant difference.
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And it plays so much into habits as well.
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It's like if you can start small, you you really start to feel what it's like to make the effort or make the contribution.
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And over time, you can adjust that based on your earnings, your motivation, your goals, and so forth, but at least you've kicked it off with those habits.
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So I appreciate that, Matthew.
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And uh a thought came to my mind has society, I'm just gonna say society, I don't know how else to put it, but has society um made it easy for 20-year-olds to explore and maybe um find tools, resources, um, platforms to make this even possible?
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Is it easily accessible?
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If if so, where do people find it?
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Yeah, you know, I I would say quite honestly, no.
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Um it has to be, you know, the the young listener that that is on this.
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Um you you have to do your own due diligence.
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I'll say you have to have your own want to look into it.
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Um you know, uh like all things in life, the you'll you'll get a a bone thrown at you.
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You'll you'll get a glimpse of, you know, yeah, I I do need to start saving for this thing called retirement, but you know, you you don't get told the how, you don't really get told the why.
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I mean, there's a lot of unanswered questions that can be scary starting young.
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I mean, you you don't necessarily call yourself a professional, I by all means am not.
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And when I was first starting, I mean there's a lot of unanswered questions that can be very, very for lack of better term, scary.
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Um and and it's like I said, it's just a matter of wanting to know more and wanting to kind of peel back that onion and say it's it's not so difficult.
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And there's a lot of these big fancy words, but and it's in in its essence, this is just me putting a simp, you know, tossing some money away for my future self to to set my future self up for success.
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Would you say that sometimes even um it depends on the people you surround yourself with when it comes to like finding opportunity and building these kind of habits?
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A thousand percent.
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Yeah, a thousand percent.
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Um I've been always told my entire life, you know, and you don't realize it until it happens, but life is all about who you surround yourself with.
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Um, you may be coming out of high school, you know, like your daughter said, and and you have this group of people and they want to know more about investing.
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They want to know more about retirement.
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I mean, their parents might have touched on it and say, hey, little Timmy, you gotta start putting away ten dollars, fifteen dollars away from your paycheck because you're gonna thank yourself in the future.
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So it's to answer your question, yes.
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It's you you need to to do those things 100%.
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Love it.
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You know, um I I sometimes feel I I like try to put myself in your shoes and you know, I I tried to think back to my earlier years, my late teens, my early 20s, and I had to think to myself, I was always looking for maybe the incentive when I made choices or when I decided to like do something.
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And so I'm sitting here thinking, gol, how could we help somebody who's um younger uh see something or hear about, you know, hey, there's an opportunity for you to really build a future if you start young?
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You know, um, it's all about the time, right?
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It's all about those small contributions.
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What's the incentive?
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Like, how can we how can we illustrate that incentive to that younger generation so that it's motivating for them to actually make the the decision?
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Like, can you think of that?
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Like, does that kind of resonate with you a little bit?
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Like, God, what is that incentive that that I see?
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My older self is probably gonna recognize the incentive a lot deeper, right?
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They're maybe more mature, more experienced, they're getting closer to retirement, they have family.
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Um, but for the younger, like, how can you help illustrate that incentive to them?
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Great question.
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And like you said, when you're older, do you have those incentives?
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You know, you have a family, or you know, you have a a reason to want to set yourself up for retirement, I guess, because there's there's a bigger picture than just yourself.
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Um, and I I will say it's hard to find an incentive, to be quite honest with you, um, as a younger investor, because you know, you you think I go back to the 40-50 year thing, I mean, you you quite honestly won't see any benefits or fruit of your labor as you would be for putting that money away until, like you said, you are at that mature age where you're like, wow, I I'm so happy I did this.
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I really helped myself out.
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Yeah.
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So as far as an incentive to to steer the younger generation to start saving towards retirement, I mean you just you have to think about your future self.
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I I would say that's the biggest incentive that drives me is of course I'm not thinking about retirement right now.
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I want to go, you know, ha have some fun with my buddies.
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I want to enjoy my younger years as as people would say.
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But I know that if I do this habit, like you said, if I start building this, you know, 15, 20, whatever is comfortable for the investor to to put away, you start building that healthy habit and you will start to see satisfaction in that.
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Um you know, building healthy habits, especially that being one of them, definitely I feel like motivates folks to want to keep going.
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And you see that number, you know, that contribution limit keep going down because you keep chipping away, chipping away, chipping away.
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And that can be motivating.
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I mean, you're doing something that a lot of folks your age are not even considering.
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And in in my eyes, that's ahead of the curve.
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Like you said, you you are setting yourself up for success, and and that's key.
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Perfect, Matthew.
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I think to kind of finish up this episode, I want to do a couple things.
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I want to walk the dog.
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All right.
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We you and I we use that term a lot, we hear that a lot.
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Um, and we're gonna do that.
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We're gonna talk a little bit about um IRAs.
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Uh, that's our space, right?
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And then um we're gonna talk about the types of IRAs.
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Um, maybe even we'll put each other on the spot, right?
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With like the type, the contribution limits, but we'll help each other out.
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I'm sure you've heard of that show, uh, Who Wants to be a Millionaire?
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We could be a lifeline for each other.
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We'll go back and forth, we'll make sure that we we get the right information out.
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Um, and then we'll talk about like what can be done once those contributions are made with an IRA.
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That way the listener kind of has a little bit of a foundation of like, you know, what where should I start?
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Okay, I'll start here.
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If if I'm hearing this from people who see it day in and day out, I'm gonna go do some research and I'm gonna I'm gonna um figure out how to do this.
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So um what are the two like common types of IRAs?
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What are they called?
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And what's their purpose?
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And you you share first, and then I'll come in and I'll backfill with some more if if necessary.
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Totally, totally.
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Yeah.
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So I would say the most common everyday IRAs you're gonna see are your traditional IRA and your Roth IRA.
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Um, both have very similar but different benefits um to benefit the listener um in their own unique way.
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So um go for it.
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I won't I won't see a but yeah, keep me honest here.
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It's perfect.
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No, you nailed it.
00:20:05.279 --> 00:20:08.000
The the traditional, the Roth, you pointed those two out.
00:20:08.240 --> 00:20:11.839
You know, those are um unique in and of themselves.
00:20:12.079 --> 00:20:13.599
So let's let's see here.
00:20:13.680 --> 00:20:14.960
I'm gonna put you on the spot.
00:20:15.200 --> 00:20:18.880
What is 20 the 2026 uh tax year?
00:20:19.039 --> 00:20:29.759
So anybody that wants to make a contribution in 2026, what's the maximum amount of money they can put into any and all IRAs that they have for 2026?
00:20:30.079 --> 00:20:30.720
Yep, yep.
00:20:30.880 --> 00:20:33.359
So for this year, it's 7,500.
00:20:33.599 --> 00:20:39.839
Um, since this is the younger generation, that's the only number we got to worry about because we're not there yet for the catch-up contribution.
00:20:40.000 --> 00:20:43.440
So um 7,500 for the 2026 year.
00:20:43.759 --> 00:20:44.400
I love that.
00:20:44.480 --> 00:20:49.119
And it's uh kind of cool because the the individual can break that up, right?
00:20:49.359 --> 00:21:02.160
Maybe they want$2,000 going towards their traditional IRA, but they can afford to put the remaining, what is it,$5,500 into the Roth, which leads me to my next question.
00:21:02.240 --> 00:21:05.839
And and again, I'm I'm putting you on the spot here, kind of in the hot seat.
00:21:05.920 --> 00:21:08.640
So um I'll I'll come in and backfill.
00:21:08.799 --> 00:21:13.279
But what is the difference between the traditional and the uh Roth IRA?
00:21:13.519 --> 00:21:13.920
For sure.
00:21:14.000 --> 00:21:15.039
Yeah, great question.
00:21:15.200 --> 00:21:18.720
So traditional, you're gonna grow tax deferred.
00:21:18.880 --> 00:21:21.920
Um, and and Roth, you're gonna grow tax free.
00:21:22.240 --> 00:21:25.039
And those are very unique terms.
00:21:25.200 --> 00:21:28.640
And if you want to know more, I definitely consult with someone other than myself.
00:21:28.880 --> 00:21:33.920
But um they they grow in very different ways for the listener.
00:21:34.079 --> 00:21:36.799
So definitely unique in their own way.
00:21:37.039 --> 00:21:37.920
Yep, exactly.
00:21:38.000 --> 00:21:45.279
So if you think about it, the the same example that I gave$2,000 contribution, that's tax deferred money.
00:21:45.359 --> 00:21:51.359
That's money that by the IRS's eyes or standards, it hasn't been taxed yet.
00:21:51.599 --> 00:21:54.079
It doesn't count towards my taxable income.
00:21:54.240 --> 00:21:59.759
So I can make that contribution and then I can grow it in an investment, and I don't pay.
00:22:00.240 --> 00:22:04.240
Taxes on it until I distribute that money when I'm in retirement age.
00:22:04.400 --> 00:22:06.960
So it could be a really good tool, going back to your point.
00:22:07.119 --> 00:22:16.480
A CPA can help you strategize on how much, how long, the split, all of that, you know, more intricate detail.
00:22:16.640 --> 00:22:21.200
Um, the Roth IRA is kind of the special IRA.
00:22:21.279 --> 00:22:36.160
A lot of people really see that, see that as a special IRA because as you make contributions and then you invest it, you make that as already taxed contributions that result in tax-free uh distributions.
00:22:36.319 --> 00:22:43.759
So again, going back to my example, I take$5,500 of my earned income in 2026 and I put it in a Roth IRA.
00:22:44.160 --> 00:22:46.400
It's been taxed by Uncle Sam.
00:22:46.720 --> 00:23:00.240
And anything that grows from that contribution, let's say I did that in, you know, when I was 20 years old, and I distribute that when I'm 60, I just let 40 years go by of that one contribution.
00:23:00.400 --> 00:23:02.319
Ideally, it's invested.
00:23:02.720 --> 00:23:06.960
It's now gonna grow tax-free at distribution.
00:23:07.279 --> 00:23:16.240
Huge benefit for anybody that's looking for um uh, you know, an inexpensive way to live in retirement.
00:23:16.319 --> 00:23:21.920
Because if you think about it, and this is food for thought, I'm just gonna say this, and it's reality.
00:23:22.400 --> 00:23:23.440
We've seen it.
00:23:23.759 --> 00:23:27.359
People will really maximize those contributions.
00:23:27.680 --> 00:23:29.039
They'll do that every single year.
00:23:29.200 --> 00:23:33.359
It's like, sure, start small, it starts to snowball, they start investing it.
00:23:33.519 --> 00:23:44.000
You hear about some of the craziest stories on the internet of people who have invested in businesses, they've invested in really unique um asset classes with Roth money.
00:23:44.240 --> 00:23:57.920
And by the time they distribute that in retirement, they're taking all of that money out of their IRA, whether it's at once or maybe over time, you know, year over year, they take out a chunk and it's non-taxable, if you will.
00:23:58.400 --> 00:24:02.480
You don't have to pay taxes on it like you normally would with your regular income.
00:24:02.640 --> 00:24:04.799
So it is such a powerful tool.
00:24:05.039 --> 00:24:11.279
So we've covered contributions, the differences between Roth and traditional IRA.
00:24:11.839 --> 00:24:15.039
Um, okay, let's go ahead and finish with this then.
00:24:15.279 --> 00:24:23.839
I want to open up our clients or our listeners' eyes on, you know, what can they use their IR to to invest in?
00:24:24.079 --> 00:24:28.000
You and I get to see the asset classes that people are investing in.
00:24:28.160 --> 00:24:36.480
Let's go ahead and paint a broad stroke uh visual of like the variety of asset classes that they can invest in.
00:24:36.640 --> 00:24:38.319
You name a few, and I'll name a few.
00:24:38.640 --> 00:24:39.839
Yeah, so many.
00:24:39.920 --> 00:24:45.759
And and that's what I think younger folks don't realize is so many different types.
00:24:45.839 --> 00:24:52.559
I mean, physical precious metals, you know, not just not just the the stock on the stock market.
00:24:52.640 --> 00:25:05.359
I mean actual physical gold and silver, oil and gas rights, um, you know campers, uh crazy, crazy things that you wouldn't even think about.
00:25:06.000 --> 00:25:09.519
Um but but people people make it happen.
00:25:09.599 --> 00:25:10.079
Yeah.
00:25:11.039 --> 00:25:13.359
Another one that comes to my mind, apartment buildings.
00:25:13.519 --> 00:25:20.079
Like when I used to drive by these big industrial buildings, I always thought it was one guy, right?
00:25:20.160 --> 00:25:30.640
Like, you know, one big macho man who's got all the money in the world, but I started doing retirement and getting in this field, and you see, oh, it's not just one guy.
00:25:30.799 --> 00:25:42.880
I mean, in some cases it is, but they're asking for capital for multiple investors, and these younger guys that is a enticing thing, right?
00:25:42.960 --> 00:25:52.160
You can be in a group of people who are all toward all moving towards the same goal, yeah, of building uh apartment complex.
00:25:52.240 --> 00:25:54.799
I mean, it's it's cool stuff, and and you never think about it.
00:25:55.119 --> 00:25:55.839
That's so cool.
00:25:55.920 --> 00:25:58.400
Yeah, you hit on some of the the big ones.
00:25:58.480 --> 00:26:11.599
You know, it's like traditionally, and I'll I'll finish this, uh we'll finish this episode with these comments here, but it's like traditionally someone might take an IRA, make contributions to it, and then invest it in the stock market, right?
00:26:11.680 --> 00:26:16.160
Like there are platforms like Robinhood is a is a perfect example.
00:26:16.319 --> 00:26:21.359
Robinhood allows someone to take contributions in an IRA and invest it in the stock market.
00:26:21.519 --> 00:26:26.079
Well, there's a whole ecosystem, there's a whole world outside of that.
00:26:26.160 --> 00:26:27.519
And that's the one that we live in.
00:26:27.599 --> 00:26:30.720
And you hit some of the juicy ones right on the head.
00:26:30.880 --> 00:26:33.200
How about even, you know, Bitcoin?
00:26:33.440 --> 00:26:38.319
That that's a you know, a trending asset class for so many reasons, right?
00:26:38.400 --> 00:26:49.279
Um, but it, you know, you could be somebody that is just looking for a different kind of asset class, um, you know, to balance or you know, diversify your portfolio.
00:26:49.359 --> 00:26:55.279
Or you could be somebody that, you know, um is looking for an alternative to fiat currency.
00:26:55.359 --> 00:27:01.680
Like the list goes on, but just having access to Bitcoin in an IRA is game-changing.
00:27:01.839 --> 00:27:03.759
When I was your age, we didn't have that.
00:27:03.920 --> 00:27:07.440
So um, you know, that in and of itself is revolutionary.
00:27:07.680 --> 00:27:17.440
Um, and then of course, uh some other ones, private REITs, you know, I think that almost aligns with your idea of the apartment complex, right?
00:27:17.519 --> 00:27:20.960
It's like, who's running that and who's like financing that?
00:27:21.119 --> 00:27:25.680
Oh my gosh, it's 50 individual investors pooling their money together.
00:27:25.920 --> 00:27:27.680
Same thing with like a private REIT.
00:27:28.160 --> 00:27:34.000
That private REIT could hold 100 single family properties, right?
00:27:34.079 --> 00:27:38.079
And behind it, there's 2,000 investors that are funding it.
00:27:38.240 --> 00:27:41.519
Um, so you know, that's one I think I'll finish.
00:27:41.599 --> 00:27:43.359
You you hit on precious metals.
00:27:43.440 --> 00:27:44.720
How about small business?
00:27:44.960 --> 00:27:47.680
All right, I'm just gonna finish up with small business.
00:27:48.240 --> 00:27:49.680
That is a juicy one.
00:27:49.920 --> 00:27:52.720
So I was actually talking to my brother about this the other day.
00:27:53.039 --> 00:28:04.799
So many small businesses are financed not by the bank because in so many cases it's actually impossible to get financing for a small business startup from a bank.
00:28:04.960 --> 00:28:06.880
So they turn to private investors.
00:28:07.119 --> 00:28:11.519
And a private investor can be an individual with an IRA.
00:28:11.759 --> 00:28:16.559
So um, Matthew, we could go on and on, but I think this has been a good session.
00:28:16.640 --> 00:28:17.599
I've really enjoyed it.
00:28:17.680 --> 00:28:19.119
And you know what we're probably gonna do?
00:28:19.279 --> 00:28:28.960
We're gonna come back for a part two um and and make sure that we dive even deeper into some of the things that you and I see every single day, just to pass on to the listener.
00:28:29.200 --> 00:28:36.240
But um, any parting words that you'd like to share to the younger generation while uh we're still doing this?
00:28:36.559 --> 00:28:41.920
Yeah, I I I would just say if there's anything you take away, it's just start young.
00:28:42.079 --> 00:28:48.000
I mean, time in the quote unquote market is better than timing in the market.
00:28:48.319 --> 00:28:50.720
If you start now, it doesn't matter.
00:28:50.880 --> 00:28:53.680
I mean, you can you know, whatever happens, happens, right?
00:28:53.759 --> 00:28:57.359
You're you're not always gonna succeed in life, let's call it that way.
00:28:57.599 --> 00:29:12.319
But you know, if you have that cadence, that habit, and and that time of of actually putting that money away, you know, it it's it's a great thing to to start now, and and you'll thank yourself later for it.
00:29:13.119 --> 00:29:14.799
Awesome, awesome, Matthew.
00:29:14.880 --> 00:29:16.640
I'm digging these quotes you're throwing out there.
00:29:16.720 --> 00:29:18.000
I'm gonna remember that one.
00:29:18.319 --> 00:29:22.559
It's it's more about time in the market rather than timing the market.
00:29:22.720 --> 00:29:23.680
So that's sweet.
00:29:23.759 --> 00:29:24.240
Uh Matthew.
00:29:26.400 --> 00:29:26.799
Right, right.
00:29:27.839 --> 00:29:29.519
Um well, good enough.
00:29:29.599 --> 00:29:31.599
I I appreciate you, Matthew, so much.
00:29:31.759 --> 00:29:42.319
Um, and uh thank you to the listener for taking time out of your day to listen to the self directed edge podcast hosted by Joel Landon and Heritage IRA.
00:29:42.400 --> 00:29:43.519
And we'll talk to you next time.
00:29:43.680 --> 00:29:44.000
Thanks.
00:29:44.079 --> 00:29:44.720
Bye bye.
00:00:00.160 --> 00:00:04.160
Welcome back everybody to the Self-Directed Edge podcast.
00:00:04.320 --> 00:00:12.640
I am your host today, Joel Landon, coming at you from Heritage IRA, and I've got a fantastic guest with us today.
00:00:12.720 --> 00:00:15.039
I've got with me today Matthew Fermanic.
00:00:15.199 --> 00:00:16.079
Matthew, how are you doing?
00:00:16.559 --> 00:00:17.359
Doing well, I'm doing well.
00:00:17.440 --> 00:00:18.399
How much self?
00:00:18.719 --> 00:00:18.960
Good.
00:00:19.039 --> 00:00:24.640
I've actually been looking forward to this podcast episode because obviously we work together.
00:00:24.800 --> 00:00:28.000
I think our listener is gonna hear a little bit about that.
00:00:28.079 --> 00:00:30.239
They're gonna hear about you, what you do for the company.
00:00:30.399 --> 00:00:36.799
Um so I've obviously got the pleasure to work with you and hang out with you virtually uh pretty much every day.
00:00:36.960 --> 00:00:53.119
Um, but also you're gonna bring a really unique perspective to today's episode because what the listener may not have noticed, maybe they're just listening and they can't see you, but you're 22 years old and you are a quote unquote young professional.
00:00:53.359 --> 00:01:07.439
And uh, we're gonna get your take on several um questions, uh, several topics as it relates to retirement and and what that looks like for the younger mind or the younger generation.
00:01:07.599 --> 00:01:08.640
So super happy.
00:01:08.879 --> 00:01:16.400
Welcome to the self-directed edge, the podcast for investors who want their retirement capital doing more than sitting in the market.
00:01:16.560 --> 00:01:19.359
I'm your host, Joel Landon, with Heritage IRA.
00:01:23.680 --> 00:01:25.200
Super happy to have you.
00:01:25.359 --> 00:01:36.480
Um, you know, it I think it goes without saying we always kick off this podcast with a little disclaimer, but everything that our listener is going to hear today is uh just purely conversational, right?
00:01:36.640 --> 00:01:46.959
Um we're gonna drop some educational bombs here and there, but uh we we want everybody to know that this is purely for your uh entertainment, for your education.
00:01:47.200 --> 00:01:56.079
And if uh you, the listener, ever wants to go out and make a decision, uh, like unto some of the decisions that we've made here professionally, it's gonna be up to you.
00:01:56.239 --> 00:02:00.000
You're gonna need to go do your own due diligence, you're gonna need to consult with the right professional.
00:02:00.239 --> 00:02:08.639
So we always like to just remind everybody that's listening um that again, this is uh purely an opportunity for us to just share experiences.
00:02:08.879 --> 00:02:17.039
So uh with that out of the way, Matthew, why don't you take a minute, just talk a little bit about who you are, tell us where you live, where you're from.
00:02:17.120 --> 00:02:23.919
I know you've moved around um and kind of give us a little glimpse into what you do uh day to day.
00:02:24.240 --> 00:02:25.520
Totally, totally, yeah.
00:02:25.680 --> 00:02:27.520
Uh first of all, thanks for having me, Joel.
00:02:27.599 --> 00:02:29.039
It's an honor to be here with you.
00:02:29.120 --> 00:02:34.240
And um, yeah, an everyday process is you know, I'll I'll back up.
00:02:34.319 --> 00:02:36.719
It's it's been a roller coaster.
00:02:36.800 --> 00:02:38.960
Like you said, it's a lot of moving around.
00:02:39.120 --> 00:02:51.039
Um, I'm locally in Ohio now, so um it's it's been a journey, and and what I like about the journey is I've seen countless types of people.
00:02:51.199 --> 00:02:53.840
Um young, old, you name it.
00:02:53.919 --> 00:02:59.680
It's it's really given me an opportunity to connect and relate with anybody.
00:02:59.840 --> 00:03:00.719
I mean, you name it.
00:03:00.960 --> 00:03:08.159
So um very blessed and very very thankful that I've been able to relate and and talk with a lot of these folks.
00:03:08.319 --> 00:03:20.560
Um and you know, backing up, it it's I'm thankful to be very, very knowledgeable in in different areas.
00:03:20.719 --> 00:03:21.439
I will say that.
00:03:21.759 --> 00:03:22.400
That's awesome.
00:03:22.479 --> 00:03:23.680
No, I I appreciate that.
00:03:23.759 --> 00:03:31.520
I've I've spent time with you again in the office, let's just say, but also I've spent some time with you outside of the office in person, getting to know you.
00:03:31.680 --> 00:03:35.759
And um, I think that's what really helps you.
00:03:35.919 --> 00:03:39.199
You know, you brought up that you've uh you've been around.
00:03:39.280 --> 00:03:50.319
I know you've lived in Texas, you're currently in Ohio, you've you you've had some great experiences um in the workforce and just even within your family um that you shared with me.
00:03:50.479 --> 00:03:54.319
And I I think it's kind of uh put you ahead of the curve, so to speak.
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Most 22-year-olds haven't had the the chances and the opportunities that you've been blessed with to uh to be where you are.
00:04:02.080 --> 00:04:09.919
And I think that that really plays well for you and the interactions that you have with our clients every day.
00:04:10.000 --> 00:04:11.919
And and we're gonna talk a little bit about that.
00:04:12.159 --> 00:04:17.360
But um, you know, tell us a little bit about your job role here at Heritage IRA.
00:04:17.519 --> 00:04:19.279
Obviously, we both work for heritage.
00:04:19.360 --> 00:04:22.240
Uh we're we're both uh client facing.
00:04:22.399 --> 00:04:24.879
That's one thing that we have in in common, right?
00:04:24.959 --> 00:04:27.600
We interact with clients every single day.
00:04:27.839 --> 00:04:32.560
Um, why don't you talk a little bit about you get into work, what do you do?
00:04:32.959 --> 00:04:34.160
Totally, totally, yeah.
00:04:34.319 --> 00:04:38.800
So um a lot of what I do is, like you said, client facing.
00:04:38.959 --> 00:04:51.360
Um, and you get all types of clients, folks who are new to self-directed, folks who have been in the industry for countless of years and they and they know they are very familiar with how things work.
00:04:51.519 --> 00:04:57.839
Um, so a lot of what I do is just connecting with these individuals, getting them brought on board to Heritage.
00:04:57.920 --> 00:05:06.079
And that really just entails, you know, funding your IRA, whether that's a rollover, a transfer, a contribution if you're eligible for this year.
00:05:06.160 --> 00:05:11.120
Um just a lot of different avenues to explore with the IRA.
00:05:11.600 --> 00:05:18.800
And my job is just to iron that out with the client and understand what they're trying to do and how they're going to accomplish it.
00:05:19.040 --> 00:05:22.399
Um a big name that we talk with is you know a Charles Schwab.
00:05:22.480 --> 00:05:25.279
That's that's of course everybody knows that one, a Fidelity even.
00:05:25.759 --> 00:05:39.439
Um, and you can even throw in your Inspiro, you can throw in your directed IRA, the the non-so talked about folks, but it's there's a lot of different types of clients that you're going to be facing.
00:05:39.759 --> 00:05:55.920
My job is just to make that as seamless as possible, dealing with whoever, whatever, whatever it's a time thing, a a bump in the road, as I would like to call it, with the custodian, but whatever it is, I I try and make that the best possible experience for our clients.
00:05:56.240 --> 00:05:56.800
That's awesome.
00:05:56.959 --> 00:06:00.079
Yeah, and I can validate that you do.
00:06:00.240 --> 00:06:02.560
You make it a really, really good experience.
00:06:02.720 --> 00:06:14.480
Anybody can go to uh Google Reviews, they can look up Heritage IRA and they can see your name there on those five-star reviews because you really you're you're essential to that client experience.
00:06:14.639 --> 00:06:16.879
I'll I'll put it this way for the listener.
00:06:17.120 --> 00:06:24.560
You know, uh a lot of individuals will come to our ecosystem, they'll come into our environment, heritage IRA, and set up an IRA.
00:06:24.720 --> 00:06:30.160
And that first initial setup is motivating, it's exciting.
00:06:30.399 --> 00:06:38.319
The clients taking that first step to accomplish some of their most uh important retirement and investing goals.
00:06:38.639 --> 00:06:47.839
And then once that first IRA opening step is done, it's like the honeymoon phase tends to wear off a little bit.
00:06:48.079 --> 00:06:58.079
And you are that person that is helping them move on from that honeymoon phase and really get into the meat and potatoes of their IRA investing journey, right?
00:06:58.160 --> 00:07:03.600
You're doing that onboarding, you're guiding that client through that funding, which can it can be challenging.
00:07:03.759 --> 00:07:06.800
And you do most of that heavy lifting.
00:07:06.959 --> 00:07:21.279
And it, I think for the for the everyday person, it it's easy to overlook or not recognize how much heavy lifting really goes into getting that IRA funded that you help our clients with.
00:07:21.519 --> 00:07:28.240
So I just want to validate all of uh what you just said and how essential that role of yours is in the company.
00:07:28.399 --> 00:07:29.600
So thank you.
00:07:29.759 --> 00:07:33.839
Thanks for kind of highlighting a little bit about yourself, where you live.
00:07:34.000 --> 00:07:37.040
Um, and and I mentioned this early on.
00:07:37.279 --> 00:07:42.160
You're younger, you're 22 years old, and you you are a young professional.
00:07:42.319 --> 00:08:01.839
I've had the joy of working with you, like I mentioned, and I've seen you uh develop quite a bit and um not just professionally, but I've also uh picked up on some of the things that you've done personally, um, specifically on the financial side uh to prepare yourself for retirement.
00:08:01.920 --> 00:08:07.759
So I'm gonna ask you some questions uh and we're gonna hear some answers from a young professional.
00:08:08.000 --> 00:08:15.199
I know we have some folks in our audience that are listening that are young and they're really looking for guidance.
00:08:15.360 --> 00:08:20.480
I can tell you right now, my 18-year-old daughter, she's looking for as much guidance as possible right now, right?
00:08:20.560 --> 00:08:22.319
She's at that point, that fork in the road.
00:08:22.399 --> 00:08:23.600
She's a senior in high school.
00:08:23.759 --> 00:08:32.320
She's she knows she needs to make serious decisions or at least start making some of those serious decisions as she moves into young adulthood.
00:08:32.480 --> 00:08:37.039
So um I'm gonna hit you with some questions here and and let's just see where these take us.
00:08:37.279 --> 00:08:39.759
So you're 22 years old.
00:08:40.000 --> 00:08:54.720
Uh what made you start thinking about retirement now as as a young as a youngin', uh, instead of saying, I'm gonna worry about it in my f until I'm you know 40, 50, even older?
00:08:55.200 --> 00:08:59.279
What what what kind of helped you make that decision, if you don't mind?
00:08:59.919 --> 00:09:00.720
Totally, yeah.
00:09:00.960 --> 00:09:04.799
So um it's very easy to to push off, right?
00:09:04.960 --> 00:09:09.200
Like you said, it's a it's something that's gonna happen in 40, maybe 50 years.
00:09:09.679 --> 00:09:14.559
Um, and it's it's not a priority for a lot of folks.
00:09:14.720 --> 00:09:18.080
And what I started to do is just build a habit.
00:09:18.320 --> 00:09:23.919
Um, you know, I didn't start with a lot, uh it was just more so five dollars.
00:09:24.159 --> 00:09:28.639
Um, then that five dollars led to fifteen dollars, fifteen dollars led to twenty-five.
00:09:28.799 --> 00:09:37.200
I mean, it it doesn't have to be a lot of money, but what I will say is it's it's the time that matters.
00:09:37.440 --> 00:09:48.639
Um you know, like you said, it for a lot of these younger folks you're getting out of high school, you have literally the entire world in front of you.
00:09:48.720 --> 00:09:51.919
I mean, you have so much time, you're not thinking about retirement.
00:09:52.000 --> 00:10:05.279
I mean, you you want to go have fun with your buddies or you know, go go travel the world or or do something to where you know that you want to take advantage of this time now, your younger years now.
00:10:06.159 --> 00:10:11.200
So I'd encourage folks to five dollars, ten dollars.
00:10:11.360 --> 00:10:34.879
I mean, dip your toes in it because when it comes that time where you are twenty-five or thirty even, you're gonna look back and be like, Wow, that fifty dollars that I was putting away when I was twenty-one years old, it it's benefiting me now because not only did that grow, potentially grow, but you don't have to start from square one at 30.
00:10:34.960 --> 00:10:39.440
You know, you benefited your future self by starting young.
00:10:39.679 --> 00:10:42.960
Um, and that what I that's the main point I would say.
00:10:43.360 --> 00:10:44.000
I love it.
00:10:44.159 --> 00:10:55.120
I I wrote down a couple of things and I it's kind of cool because I don't know if you picked this up somewhere, if it like came from the heart, but you said it's the time that matters.
00:10:55.519 --> 00:11:05.519
And you know, it it's kind of cool because I think somebody could walk away from this podcast episode and just replay that thought or that comment in their head often.
00:11:05.600 --> 00:11:12.720
And it's it's applicable in so many realms of our life, but um I think you really hit the nail on the head.
00:11:13.039 --> 00:11:16.799
People talk about compounding earnings or compounding interests.
00:11:17.039 --> 00:11:28.559
And if you do have that runway, right, if you can start early on and um give time the opportunity to help you grow what you put away.
00:11:28.799 --> 00:11:32.240
You even mentioned just start small,$5,$10,$15.
00:11:33.120 --> 00:11:41.279
Even at the those small increments, if you give it that runway, if you give it that time, um, you know, those I'm 40 years old.
00:11:41.360 --> 00:11:49.120
I I've done stuff like that, and and I've seen that compound over time and 20 years go by and they go by pretty quick.
00:11:49.360 --> 00:11:54.480
You recognize how those small contributions have made a significant difference.
00:11:54.639 --> 00:11:57.279
And it plays so much into habits as well.
00:11:57.440 --> 00:12:06.080
It's like if you can start small, you you really start to feel what it's like to make the effort or make the contribution.
00:12:06.320 --> 00:12:14.639
And over time, you can adjust that based on your earnings, your motivation, your goals, and so forth, but at least you've kicked it off with those habits.
00:12:14.720 --> 00:12:15.919
So I appreciate that, Matthew.
00:12:16.000 --> 00:12:39.840
And uh a thought came to my mind has society, I'm just gonna say society, I don't know how else to put it, but has society um made it easy for 20-year-olds to explore and maybe um find tools, resources, um, platforms to make this even possible?
00:12:41.279 --> 00:12:42.720
Is it easily accessible?
00:12:42.879 --> 00:12:45.120
If if so, where do people find it?
00:12:45.840 --> 00:12:49.919
Yeah, you know, I I would say quite honestly, no.
00:12:50.240 --> 00:12:56.240
Um it has to be, you know, the the young listener that that is on this.
00:12:56.399 --> 00:12:59.600
Um you you have to do your own due diligence.
00:12:59.679 --> 00:13:04.320
I'll say you have to have your own want to look into it.
00:13:04.559 --> 00:13:10.159
Um you know, uh like all things in life, the you'll you'll get a a bone thrown at you.
00:13:10.240 --> 00:13:20.799
You'll you'll get a glimpse of, you know, yeah, I I do need to start saving for this thing called retirement, but you know, you you don't get told the how, you don't really get told the why.
00:13:21.039 --> 00:13:26.000
I mean, there's a lot of unanswered questions that can be scary starting young.
00:13:26.080 --> 00:13:31.200
I mean, you you don't necessarily call yourself a professional, I by all means am not.
00:13:31.360 --> 00:13:43.200
And when I was first starting, I mean there's a lot of unanswered questions that can be very, very for lack of better term, scary.
00:13:43.440 --> 00:13:54.879
Um and and it's like I said, it's just a matter of wanting to know more and wanting to kind of peel back that onion and say it's it's not so difficult.
00:13:55.039 --> 00:14:08.480
And there's a lot of these big fancy words, but and it's in in its essence, this is just me putting a simp, you know, tossing some money away for my future self to to set my future self up for success.
00:14:09.360 --> 00:14:20.240
Would you say that sometimes even um it depends on the people you surround yourself with when it comes to like finding opportunity and building these kind of habits?
00:14:20.639 --> 00:14:21.360
A thousand percent.
00:14:21.519 --> 00:14:22.639
Yeah, a thousand percent.
00:14:22.879 --> 00:14:31.519
Um I've been always told my entire life, you know, and you don't realize it until it happens, but life is all about who you surround yourself with.
00:14:31.759 --> 00:14:40.720
Um, you may be coming out of high school, you know, like your daughter said, and and you have this group of people and they want to know more about investing.
00:14:40.960 --> 00:14:43.360
They want to know more about retirement.
00:14:43.519 --> 00:14:54.000
I mean, their parents might have touched on it and say, hey, little Timmy, you gotta start putting away ten dollars, fifteen dollars away from your paycheck because you're gonna thank yourself in the future.
00:14:54.159 --> 00:14:58.399
So it's to answer your question, yes.
00:14:58.480 --> 00:15:02.080
It's you you need to to do those things 100%.
00:15:02.960 --> 00:15:03.360
Love it.
00:15:03.519 --> 00:15:24.080
You know, um I I sometimes feel I I like try to put myself in your shoes and you know, I I tried to think back to my earlier years, my late teens, my early 20s, and I had to think to myself, I was always looking for maybe the incentive when I made choices or when I decided to like do something.
00:15:24.159 --> 00:15:37.039
And so I'm sitting here thinking, gol, how could we help somebody who's um younger uh see something or hear about, you know, hey, there's an opportunity for you to really build a future if you start young?
00:15:37.200 --> 00:15:39.600
You know, um, it's all about the time, right?
00:15:39.840 --> 00:15:41.679
It's all about those small contributions.
00:15:41.919 --> 00:15:43.039
What's the incentive?
00:15:43.120 --> 00:15:54.639
Like, how can we how can we illustrate that incentive to that younger generation so that it's motivating for them to actually make the the decision?
00:15:54.799 --> 00:15:55.919
Like, can you think of that?
00:15:56.080 --> 00:15:58.399
Like, does that kind of resonate with you a little bit?
00:15:58.480 --> 00:16:01.919
Like, God, what is that incentive that that I see?
00:16:02.080 --> 00:16:06.159
My older self is probably gonna recognize the incentive a lot deeper, right?
00:16:06.240 --> 00:16:11.679
They're maybe more mature, more experienced, they're getting closer to retirement, they have family.
00:16:11.840 --> 00:16:17.039
Um, but for the younger, like, how can you help illustrate that incentive to them?
00:16:17.919 --> 00:16:18.799
Great question.
00:16:19.039 --> 00:16:22.639
And like you said, when you're older, do you have those incentives?
00:16:22.720 --> 00:16:32.960
You know, you have a family, or you know, you have a a reason to want to set yourself up for retirement, I guess, because there's there's a bigger picture than just yourself.
00:16:33.279 --> 00:17:01.919
Um, and I I will say it's hard to find an incentive, to be quite honest with you, um, as a younger investor, because you know, you you think I go back to the 40-50 year thing, I mean, you you quite honestly won't see any benefits or fruit of your labor as you would be for putting that money away until, like you said, you are at that mature age where you're like, wow, I I'm so happy I did this.
00:17:02.240 --> 00:17:04.319
I really helped myself out.
00:17:04.559 --> 00:17:04.960
Yeah.
00:17:05.279 --> 00:17:17.680
So as far as an incentive to to steer the younger generation to start saving towards retirement, I mean you just you have to think about your future self.
00:17:17.759 --> 00:17:24.240
I I would say that's the biggest incentive that drives me is of course I'm not thinking about retirement right now.
00:17:24.319 --> 00:17:27.440
I want to go, you know, ha have some fun with my buddies.
00:17:27.519 --> 00:17:31.279
I want to enjoy my younger years as as people would say.
00:17:31.599 --> 00:17:49.440
But I know that if I do this habit, like you said, if I start building this, you know, 15, 20, whatever is comfortable for the investor to to put away, you start building that healthy habit and you will start to see satisfaction in that.
00:17:49.599 --> 00:17:59.119
Um you know, building healthy habits, especially that being one of them, definitely I feel like motivates folks to want to keep going.
00:17:59.359 --> 00:18:07.200
And you see that number, you know, that contribution limit keep going down because you keep chipping away, chipping away, chipping away.
00:18:07.599 --> 00:18:09.200
And that can be motivating.
00:18:09.359 --> 00:18:15.519
I mean, you're doing something that a lot of folks your age are not even considering.
00:18:16.079 --> 00:18:19.279
And in in my eyes, that's ahead of the curve.
00:18:19.359 --> 00:18:24.319
Like you said, you you are setting yourself up for success, and and that's key.
00:18:25.119 --> 00:18:26.079
Perfect, Matthew.
00:18:26.240 --> 00:18:30.799
I think to kind of finish up this episode, I want to do a couple things.
00:18:30.880 --> 00:18:32.240
I want to walk the dog.
00:18:32.480 --> 00:18:32.880
All right.
00:18:33.039 --> 00:18:36.319
We you and I we use that term a lot, we hear that a lot.
00:18:36.400 --> 00:18:37.519
Um, and we're gonna do that.
00:18:37.599 --> 00:18:41.440
We're gonna talk a little bit about um IRAs.
00:18:41.599 --> 00:18:43.279
Uh, that's our space, right?
00:18:43.519 --> 00:18:47.519
And then um we're gonna talk about the types of IRAs.
00:18:47.759 --> 00:18:50.880
Um, maybe even we'll put each other on the spot, right?
00:18:51.039 --> 00:18:55.680
With like the type, the contribution limits, but we'll help each other out.
00:18:55.920 --> 00:18:59.119
I'm sure you've heard of that show, uh, Who Wants to be a Millionaire?
00:18:59.200 --> 00:19:00.640
We could be a lifeline for each other.
00:19:00.720 --> 00:19:04.880
We'll go back and forth, we'll make sure that we we get the right information out.
00:19:05.039 --> 00:19:10.240
Um, and then we'll talk about like what can be done once those contributions are made with an IRA.
00:19:10.400 --> 00:19:15.680
That way the listener kind of has a little bit of a foundation of like, you know, what where should I start?
00:19:15.839 --> 00:19:17.039
Okay, I'll start here.
00:19:17.279 --> 00:19:24.400
If if I'm hearing this from people who see it day in and day out, I'm gonna go do some research and I'm gonna I'm gonna um figure out how to do this.
00:19:24.559 --> 00:19:29.920
So um what are the two like common types of IRAs?
00:19:30.079 --> 00:19:31.200
What are they called?
00:19:31.359 --> 00:19:32.880
And what's their purpose?
00:19:33.119 --> 00:19:38.400
And you you share first, and then I'll come in and I'll backfill with some more if if necessary.
00:19:38.799 --> 00:19:39.440
Totally, totally.
00:19:39.599 --> 00:19:39.839
Yeah.
00:19:40.000 --> 00:19:45.839
So I would say the most common everyday IRAs you're gonna see are your traditional IRA and your Roth IRA.
00:19:46.319 --> 00:19:56.720
Um, both have very similar but different benefits um to benefit the listener um in their own unique way.
00:19:56.960 --> 00:20:00.799
So um go for it.
00:20:00.960 --> 00:20:03.440
I won't I won't see a but yeah, keep me honest here.
00:20:03.839 --> 00:20:04.319
It's perfect.
00:20:04.400 --> 00:20:05.200
No, you nailed it.
00:20:05.279 --> 00:20:08.000
The the traditional, the Roth, you pointed those two out.
00:20:08.240 --> 00:20:11.839
You know, those are um unique in and of themselves.
00:20:12.079 --> 00:20:13.599
So let's let's see here.
00:20:13.680 --> 00:20:14.960
I'm gonna put you on the spot.
00:20:15.200 --> 00:20:18.880
What is 20 the 2026 uh tax year?
00:20:19.039 --> 00:20:29.759
So anybody that wants to make a contribution in 2026, what's the maximum amount of money they can put into any and all IRAs that they have for 2026?
00:20:30.079 --> 00:20:30.720
Yep, yep.
00:20:30.880 --> 00:20:33.359
So for this year, it's 7,500.
00:20:33.599 --> 00:20:39.839
Um, since this is the younger generation, that's the only number we got to worry about because we're not there yet for the catch-up contribution.
00:20:40.000 --> 00:20:43.440
So um 7,500 for the 2026 year.
00:20:43.759 --> 00:20:44.400
I love that.
00:20:44.480 --> 00:20:49.119
And it's uh kind of cool because the the individual can break that up, right?
00:20:49.359 --> 00:21:02.160
Maybe they want$2,000 going towards their traditional IRA, but they can afford to put the remaining, what is it,$5,500 into the Roth, which leads me to my next question.
00:21:02.240 --> 00:21:05.839
And and again, I'm I'm putting you on the spot here, kind of in the hot seat.
00:21:05.920 --> 00:21:08.640
So um I'll I'll come in and backfill.
00:21:08.799 --> 00:21:13.279
But what is the difference between the traditional and the uh Roth IRA?
00:21:13.519 --> 00:21:13.920
For sure.
00:21:14.000 --> 00:21:15.039
Yeah, great question.
00:21:15.200 --> 00:21:18.720
So traditional, you're gonna grow tax deferred.
00:21:18.880 --> 00:21:21.920
Um, and and Roth, you're gonna grow tax free.
00:21:22.240 --> 00:21:25.039
And those are very unique terms.
00:21:25.200 --> 00:21:28.640
And if you want to know more, I definitely consult with someone other than myself.
00:21:28.880 --> 00:21:33.920
But um they they grow in very different ways for the listener.
00:21:34.079 --> 00:21:36.799
So definitely unique in their own way.
00:21:37.039 --> 00:21:37.920
Yep, exactly.
00:21:38.000 --> 00:21:45.279
So if you think about it, the the same example that I gave$2,000 contribution, that's tax deferred money.
00:21:45.359 --> 00:21:51.359
That's money that by the IRS's eyes or standards, it hasn't been taxed yet.
00:21:51.599 --> 00:21:54.079
It doesn't count towards my taxable income.
00:21:54.240 --> 00:21:59.759
So I can make that contribution and then I can grow it in an investment, and I don't pay.
00:22:00.240 --> 00:22:04.240
Taxes on it until I distribute that money when I'm in retirement age.
00:22:04.400 --> 00:22:06.960
So it could be a really good tool, going back to your point.
00:22:07.119 --> 00:22:16.480
A CPA can help you strategize on how much, how long, the split, all of that, you know, more intricate detail.
00:22:16.640 --> 00:22:21.200
Um, the Roth IRA is kind of the special IRA.
00:22:21.279 --> 00:22:36.160
A lot of people really see that, see that as a special IRA because as you make contributions and then you invest it, you make that as already taxed contributions that result in tax-free uh distributions.
00:22:36.319 --> 00:22:43.759
So again, going back to my example, I take$5,500 of my earned income in 2026 and I put it in a Roth IRA.
00:22:44.160 --> 00:22:46.400
It's been taxed by Uncle Sam.
00:22:46.720 --> 00:23:00.240
And anything that grows from that contribution, let's say I did that in, you know, when I was 20 years old, and I distribute that when I'm 60, I just let 40 years go by of that one contribution.
00:23:00.400 --> 00:23:02.319
Ideally, it's invested.
00:23:02.720 --> 00:23:06.960
It's now gonna grow tax-free at distribution.
00:23:07.279 --> 00:23:16.240
Huge benefit for anybody that's looking for um uh, you know, an inexpensive way to live in retirement.
00:23:16.319 --> 00:23:21.920
Because if you think about it, and this is food for thought, I'm just gonna say this, and it's reality.
00:23:22.400 --> 00:23:23.440
We've seen it.
00:23:23.759 --> 00:23:27.359
People will really maximize those contributions.
00:23:27.680 --> 00:23:29.039
They'll do that every single year.
00:23:29.200 --> 00:23:33.359
It's like, sure, start small, it starts to snowball, they start investing it.
00:23:33.519 --> 00:23:44.000
You hear about some of the craziest stories on the internet of people who have invested in businesses, they've invested in really unique um asset classes with Roth money.
00:23:44.240 --> 00:23:57.920
And by the time they distribute that in retirement, they're taking all of that money out of their IRA, whether it's at once or maybe over time, you know, year over year, they take out a chunk and it's non-taxable, if you will.
00:23:58.400 --> 00:24:02.480
You don't have to pay taxes on it like you normally would with your regular income.
00:24:02.640 --> 00:24:04.799
So it is such a powerful tool.
00:24:05.039 --> 00:24:11.279
So we've covered contributions, the differences between Roth and traditional IRA.
00:24:11.839 --> 00:24:15.039
Um, okay, let's go ahead and finish with this then.
00:24:15.279 --> 00:24:23.839
I want to open up our clients or our listeners' eyes on, you know, what can they use their IR to to invest in?
00:24:24.079 --> 00:24:28.000
You and I get to see the asset classes that people are investing in.
00:24:28.160 --> 00:24:36.480
Let's go ahead and paint a broad stroke uh visual of like the variety of asset classes that they can invest in.
00:24:36.640 --> 00:24:38.319
You name a few, and I'll name a few.
00:24:38.640 --> 00:24:39.839
Yeah, so many.
00:24:39.920 --> 00:24:45.759
And and that's what I think younger folks don't realize is so many different types.
00:24:45.839 --> 00:24:52.559
I mean, physical precious metals, you know, not just not just the the stock on the stock market.
00:24:52.640 --> 00:25:05.359
I mean actual physical gold and silver, oil and gas rights, um, you know campers, uh crazy, crazy things that you wouldn't even think about.
00:25:06.000 --> 00:25:09.519
Um but but people people make it happen.
00:25:09.599 --> 00:25:10.079
Yeah.
00:25:11.039 --> 00:25:13.359
Another one that comes to my mind, apartment buildings.
00:25:13.519 --> 00:25:20.079
Like when I used to drive by these big industrial buildings, I always thought it was one guy, right?
00:25:20.160 --> 00:25:30.640
Like, you know, one big macho man who's got all the money in the world, but I started doing retirement and getting in this field, and you see, oh, it's not just one guy.
00:25:30.799 --> 00:25:42.880
I mean, in some cases it is, but they're asking for capital for multiple investors, and these younger guys that is a enticing thing, right?
00:25:42.960 --> 00:25:52.160
You can be in a group of people who are all toward all moving towards the same goal, yeah, of building uh apartment complex.
00:25:52.240 --> 00:25:54.799
I mean, it's it's cool stuff, and and you never think about it.
00:25:55.119 --> 00:25:55.839
That's so cool.
00:25:55.920 --> 00:25:58.400
Yeah, you hit on some of the the big ones.
00:25:58.480 --> 00:26:11.599
You know, it's like traditionally, and I'll I'll finish this, uh we'll finish this episode with these comments here, but it's like traditionally someone might take an IRA, make contributions to it, and then invest it in the stock market, right?
00:26:11.680 --> 00:26:16.160
Like there are platforms like Robinhood is a is a perfect example.
00:26:16.319 --> 00:26:21.359
Robinhood allows someone to take contributions in an IRA and invest it in the stock market.
00:26:21.519 --> 00:26:26.079
Well, there's a whole ecosystem, there's a whole world outside of that.
00:26:26.160 --> 00:26:27.519
And that's the one that we live in.
00:26:27.599 --> 00:26:30.720
And you hit some of the juicy ones right on the head.
00:26:30.880 --> 00:26:33.200
How about even, you know, Bitcoin?
00:26:33.440 --> 00:26:38.319
That that's a you know, a trending asset class for so many reasons, right?
00:26:38.400 --> 00:26:49.279
Um, but it, you know, you could be somebody that is just looking for a different kind of asset class, um, you know, to balance or you know, diversify your portfolio.
00:26:49.359 --> 00:26:55.279
Or you could be somebody that, you know, um is looking for an alternative to fiat currency.
00:26:55.359 --> 00:27:01.680
Like the list goes on, but just having access to Bitcoin in an IRA is game-changing.
00:27:01.839 --> 00:27:03.759
When I was your age, we didn't have that.
00:27:03.920 --> 00:27:07.440
So um, you know, that in and of itself is revolutionary.
00:27:07.680 --> 00:27:17.440
Um, and then of course, uh some other ones, private REITs, you know, I think that almost aligns with your idea of the apartment complex, right?
00:27:17.519 --> 00:27:20.960
It's like, who's running that and who's like financing that?
00:27:21.119 --> 00:27:25.680
Oh my gosh, it's 50 individual investors pooling their money together.
00:27:25.920 --> 00:27:27.680
Same thing with like a private REIT.
00:27:28.160 --> 00:27:34.000
That private REIT could hold 100 single family properties, right?
00:27:34.079 --> 00:27:38.079
And behind it, there's 2,000 investors that are funding it.
00:27:38.240 --> 00:27:41.519
Um, so you know, that's one I think I'll finish.
00:27:41.599 --> 00:27:43.359
You you hit on precious metals.
00:27:43.440 --> 00:27:44.720
How about small business?
00:27:44.960 --> 00:27:47.680
All right, I'm just gonna finish up with small business.
00:27:48.240 --> 00:27:49.680
That is a juicy one.
00:27:49.920 --> 00:27:52.720
So I was actually talking to my brother about this the other day.
00:27:53.039 --> 00:28:04.799
So many small businesses are financed not by the bank because in so many cases it's actually impossible to get financing for a small business startup from a bank.
00:28:04.960 --> 00:28:06.880
So they turn to private investors.
00:28:07.119 --> 00:28:11.519
And a private investor can be an individual with an IRA.
00:28:11.759 --> 00:28:16.559
So um, Matthew, we could go on and on, but I think this has been a good session.
00:28:16.640 --> 00:28:17.599
I've really enjoyed it.
00:28:17.680 --> 00:28:19.119
And you know what we're probably gonna do?
00:28:19.279 --> 00:28:28.960
We're gonna come back for a part two um and and make sure that we dive even deeper into some of the things that you and I see every single day, just to pass on to the listener.
00:28:29.200 --> 00:28:36.240
But um, any parting words that you'd like to share to the younger generation while uh we're still doing this?
00:28:36.559 --> 00:28:41.920
Yeah, I I I would just say if there's anything you take away, it's just start young.
00:28:42.079 --> 00:28:48.000
I mean, time in the quote unquote market is better than timing in the market.
00:28:48.319 --> 00:28:50.720
If you start now, it doesn't matter.
00:28:50.880 --> 00:28:53.680
I mean, you can you know, whatever happens, happens, right?
00:28:53.759 --> 00:28:57.359
You're you're not always gonna succeed in life, let's call it that way.
00:28:57.599 --> 00:29:12.319
But you know, if you have that cadence, that habit, and and that time of of actually putting that money away, you know, it it's it's a great thing to to start now, and and you'll thank yourself later for it.
00:29:13.119 --> 00:29:14.799
Awesome, awesome, Matthew.
00:29:14.880 --> 00:29:16.640
I'm digging these quotes you're throwing out there.
00:29:16.720 --> 00:29:18.000
I'm gonna remember that one.
00:29:18.319 --> 00:29:22.559
It's it's more about time in the market rather than timing the market.
00:29:22.720 --> 00:29:23.680
So that's sweet.
00:29:23.759 --> 00:29:24.240
Uh Matthew.
00:29:26.400 --> 00:29:26.799
Right, right.
00:29:27.839 --> 00:29:29.519
Um well, good enough.
00:29:29.599 --> 00:29:31.599
I I appreciate you, Matthew, so much.
00:29:31.759 --> 00:29:42.319
Um, and uh thank you to the listener for taking time out of your day to listen to the self directed edge podcast hosted by Joel Landon and Heritage IRA.
00:29:42.400 --> 00:29:43.519
And we'll talk to you next time.
00:29:43.680 --> 00:29:44.000
Thanks.
00:29:44.079 --> 00:29:44.720
Bye bye.
