Episode 29: Secret Revealed: The Best No Risk Investment You Can Make

ABOUT THIS EPISODE

On this episode of the Build Your Life Podcast with Financial Expert John Browning, we're discussing the best no risk investment you can make.

 

Everyone is searching for the secret, right? What's the best investment that produces the least amount of risk? Well, tune in to today's episode and find out! John shares all on today's podcast. Don't miss this one!

 

For more information, visit www.GuardianRockWealth.com to learn more about what John can do for you. Or, give us a call at (312) 372-5000.

 

Welcome to the build your life podcast with John Browning. Build your life as a relaxed and unedited conversation with financial expert John Browning. John's the founder of Guardian Rock Wealth, with offices in Hawaii, Colorado and Illinois. John's also the author of the book build a life, not a portfolio, a guide to your financial future based on your personal values, which you can purchase on Amazon, or stay around to the end of today's show and I'll tell you how to get a free copy mailed right to your door. I'm Michael Delan, your host for the next few minutes as we chat with financial expert, business owner and author John Browning. Okay, John, we are back for another episode of Your podcast. How are you today? I'm doing fantastic good. I'm glad to hear that, because I'm going to see if I can stop you, or maybe our listeners, because I want to know if you...

...can talk to us about the greatest no risk investment that somebody could get. I can I know exactly what that is. Actually you tell, do tell. I am all ears. This is. This is fantastic because, you know, I don't know if you get amat it too, but I can't you know, these emails like make a thousand percent two days or a matter of hours. You know, I get all these crazy, crazy emails about people claiming to be a millionaire overnight and if you ever, if anybody listening, gets those emails, just hit the lead really. That's a right really fast. Yeah, because you wonder how tdamer trade and all these big firms are able to give no cost trading? was because all of these average, every day folks are think their options traders overnight and they're trying to do this in their unfortunately just losing their shirts and but on the volume of trading is...

...how TV, marriage all these places make money. So that's what most of these folks in there and generally speaking, they're not registered investment advisors, are not licensed, they're just trying to just saying hey, you know, it work for me, it's worked for you and no problem, you know in that type of stuff. But I can give you right here, right now the greatest investment that I know of that you can make today if you have a credit card with a balance on it, because typically a credit card has a rate of at least fifteen percent. Some of them, I've heard, have rates up to twenty six twenty seven percent. So if you're carrying a balance, what's the best thing you could invest in? Paying off that credit card. That is a and I don't get a chance to say this very often, but I'm going to say it right now, that is a guaranteed twenty six percent return to you if you're paying off that balance. Every dollar...

...that you pay off that you don't have to pay twenty six percent and is twenty six percent of that dollar back in your pocket. That's like a quarter every dollar that you put to pay down that credit card debt. And yet I will tell you that I have in investors investing with me who will share with me that they have thousands and thousands and thousands of dollars in credit cards. And I'm honest with them. I tell them, I can't get you anything with that kind of return. Okay, I can't do it. There's nothing out there and it's risk free if you're paying off the credit card. That's incredible, John and and I think it's I think it goes back to the it's just not sexy to pay off a credit card. It's putting a roof on your house, you're fixing your plulling. You know. Yeah, yeah, it's really bad, but it's internal. I want to go back in two or three episodes. We were talking about emergency funds and you said...

...that it's you know, if you put away a hundred dollars a month and you watch it grow every month you have a goal, you're going to see that thing grow pretty quickly. When Jill and I got married thirty years ago, I brought in some debt into the place and she's a budgeting person. She laid out a budget for us and every month we would pay off a portion of our credit card debt and we could see it getting smaller and smaller and smaller. And then, you know, we hadn't, you know, three or four cards in a couple other ones, and one of them we get paid off and she'd cross it out and then we'd cross another one out and then it was motivating do because we could see it so good. Somebody could easily do that with a credit card debt. Right, that's right, that's right. And two things that I think of when you just share that story. One is the increpible motivation that you get from checking off something on your yeah, systematically putting a plan in place to pay that credit card debta. And the other thing that comes to mind is that as you pay off...

...that credit card and you're paying off that high interest rate, the power of compounding interest works both ways. So the credit card companies are they love it right, because not only is it yeah, like you and I can invest in a short term that instrument for like next to nothing now, and so the power of compounded interest is a little little muted. All those still very real, but compounded interest on a twenty six percent we wonder how the banks are doing. Okay, that would be why. You know, they have so many people that are paying fifteen to twenty six percent every month on thousands of dollars done. That is crazy and I wonder why. I you know, I don't know how many credit card offers you get in the mail right I get a fair number and when my sons were about home, sixteen seventeen,...

...they started getting a bunch of them. and You wonder why, and you just answered it. Because people put balances on them, they pay for them, probably for dozens of years. Yes, and you do. The compounded power of compounded interest is Einstein said it was the eighth wonder of the world. Yes, because of how fast it either works against you with credit card debt, or for you, if you're able to be an investor. Yeah, and that's really interesting, John, because so many people, all we hear about is how I'm saving in building for every time I want to build wealth. And at the same time, what you just said is a lot of these people are carrying a lot of credit card debt where if they would pay that off and then take that money and invest it, they're going to be a lot better off, not only now but down the road because of compound interest. Right. Yeah, absolutely. Yeah, it makes it makes no sense when you think through it logically. But the problem is,...

...and I talked about this in my book, right, build a life amount of port full of the problem is that, as much as we'd like to stay we're very logical, we're not, or not we just I mean I haven't I've met some, you know, some CPA's typically, or engineers, that are very logical, and yet when they make certain decisions, it makes no sense. It makes no sense. It's an emotional decision and get griefless. Stopped trying to deny that and let's let's embrace it. We're emotional beings and that's how God made this. So let's just let's talk to other people like myself who can provide maybe a little different perspective and help you make the right decision and turn right when you might be thinking about turning a last yeah, that's good, because everybody seems to be wanting a guaranteed and return on their investment. They want big, big percentage returns, and what you just told us is that you know exactly how to get that. And odds are...

...seven out of ten people you meet with or probably caring a balance on the credit card. And that's me saying that. I don't have any research to back that up. That's just my gut. Yeah, I don't. I've never actually written down the statistics, but it's a fairly high number. Yes, well, well, will, because these people they have yeah, and especially these people approach retirement, because they're just starting to think about, well, I'm going to have to replace my paycheck and how do I do that? And we I actually have to come up with probably more than my paycheck is now. I got to be health here and all of those and they're starting to consider all these things. But they're there. They've continued to live like they've lived for the past thirty years, and that involves just kind of rolling over some credit card that every month. And so as they had into retirement, really the best investment they can make was paying off those credit cards first. And people just don't think about that and people like well, they're told when they forget their first shot, contribute to your four own K,...

...and that's a very, very good advice. I will tell them the same thing. But I'll also tell them I actually just pull this to a gentleman not too long ago. He was contributing the maximum out to his fore K, but he had credit card debt and I had them pull up on his phone is APP. I said, can you pull up the statement and show me what interest rate you're paying, and so we pulled it out the phone. He's like and it was twenty two percent. Believe. Wowhole. Are you able to earn that in your K, even after the tax implications and even after the company match? Are you able to be guaranteed make twenty two percent? And he's like, well, no, as like then stop, stop the contributions and pay off their credit card and then start them back up full force. So those are the crazy conversations that I have sometimes. That's great and that's a great segue for me to say you need to have one of those crazy conversations with John. I may not have to be around credit...

...cards and things, but it is around investing and building life and making sure your portfolios is set structured properly for you and John and his team at Guardian rock wealth, they don't have pull off the shelf portfolios that you're on a fit into. They're going to craft one just specifically for you. Whether you have lots of credit card deet and no credit card debt, you own your house, you're a government employee or just a typical person, you're a business owner, it really doesn't matter. John's the guy who has enough experience. He's been doing this John Thirty plus years, coming right up on thirty years. Yeah, okay, so he has the experience. He seen, he has seen the ups and the downs and he is somebody who will have a great conversation with you. So let me encourage you. Just reach out to John. I go to his website, Guardian rockwealthcom, and schedule a zoom call with him or a phone call. If you're in Hawaii, maybe he'll take you out the coffee or something and you guys can talk about your future. And our coffee shops open yet. Do the chrome there? Most of them are open. They have the social distancing. There's a place I love...

...to go to, the hunelulu coffee cut coffee company and Glazers coffee right not too far away from me here, and I meet clients. It's actually easier to meet clients, if they want to meet facetoface, in a coffee shop now than it is in my office because my office is so locked down. So that's where I've been going to coffee shops, which is great for me because I like coffee. So that's right good to be. Also, if you're in Hawaii, go see John at a coffee shop and, if you're not, see him on zoom or have a phone call and just have have conversations around stuff like this. It's real practical. Appreciate this, this podcast John, because it is practical stuff that everybody deals with. I think. I don't say everybody has a credit card, but most everybody has a credit card and I bet most of those people are carrying a balance and they need to understand that paying off that balance is the greatest no risk investment that they can get. It's right, and credit cards are not bad. They're not not bad evil instruments. They're they're great tools and it kind of like, kind of like fire, a little bits of good. Thank you, Tom...

...but you need to have it under control because they can destroy things. That it can and if you use credit cards properly, you get points that I can fly to Hawaii pretty soon to meet with you and and coffee shop. That's right, exactly. Okay, I'll keep spending money and paying them off so I can, I can come see you, John. Well. Thanks their thanks for helping US understand the greatest no risk investment that you can get in paint off your credit cards. Just one little tidbit that you can learn from John, from Guardian rockwealthcom. Thanks John. We will talk to you again soon, sir. All right, we'll see soon byself. Thanks for listening to the building your life podcast with John Browning. Be Sure to subscribe to this podcast so each new episode will be sent to you automatically when it is released. Have a terrific day.

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