Show Notes

Today we have Bennie Evans from Purposed Consulting talking about: 

  • Why you shouldn’t keep your money at a bank?
  • “How can entrepreneurs prepare for retirement” since a 401k isn’t available?
  • Why financial independence or fully understanding your 401k is important as purchasing your first home/car.

You can find out more about Bennie here:

www.purposedconsulting.com

https://www.facebook.com/PurposedConsulting 

Transcript

Christian: [00:00:15] Hey, what's going on? And today we're going to talk about how entrepreneurs can save money for retirement and/or financial independence. We're going to talk a little bit about why you shouldn't keep money in the bank. We're going to talk about 401ks. We have a lot of good stuff going on today, and we also have a very special guest, our good friend Bennie Evans, vice president at Purpose Consulting.

 

Bennie: [00:00:35] Wow. Wow. Thank you. Thank you. So glad to be here. Thank you for having me on the show.

 

Aaron: [00:00:40] All right. So we know you pretty well, but there's a lot of people who are listening in from all over. I don't know. We've got to check out our Blubrry from where at, but there's a lot of weird places. They don't know who you are. So can you give us a little background about who Bennie is and Purpose Consulting?

 

Bennie: [00:00:54] Yeah, absolutely. My name is, of course, Bennie Evans. I grew up in Baltimore City, Maryland. Actually, myself, I actually went in the military back in '98. So I'm a veteran. So all the veterans out there, salute to you and everyone out there that has actually served our country.

 

Aaron: [00:01:11] Salute.

 

Bennie: [00:01:12] Absolutely. So actually from there, own my own business and became an entrepreneur by- I had a little restaurant in Baltimore City, Maryland. Half Korean, and I'm half African-American. So I cook soul food and Korean food fused together, and I see that's a big thing out here in the Dallas area. We have a-

 

Christian: [00:01:33] Lot of fusion.

 

Bennie: [00:01:34] A lot of fusion. So I'm loving that. And from there, I actually moved out to Texas. Good ole Texas. You know, they say everything is big in Texas besides my feet, but you know, who's the judge? But anyway, I'm out here, you know. I actually got into the lube business. Learned about cars because actually when I was in the military and U.S. Army, I worked on a lot of vehicles. From there, I did that for nine years in the Texas scene. My wife, Kimberly Evans, who's actually my soulmate who is actually the CEO of our company, wanted me to come into the money business with her. So she's actually a great influence of mine. A little bit of her background is she's a JD/MBA. She's an attorney by trade. She co-wrote the Home Affordable Modification Program, under the Obama administration. She's also a member of Mensa and-

 

Aaron: [00:02:31] What's Mensa for people that don't know Mensa?

 

Bennie: [00:02:33] Yes, so, that's like the top 2 percent of the smartest people in the world. So yeah, me, I think I'm in the 90 percentile. So, but yes, she's pretty smart and very money savvy and kind of taught me the ins and outs about a lot of things that I didn't know growing up. So that's what actually made me jump into the business, and our tagline is "Real people with a real purpose," because we're looking at our clients and business owners out there and just trying to help them out to actually have the safe money for retirement, the financially independence.

 

Christian: [00:03:07] Right. You guys focused a lot in education.

 

Bennie: [00:03:09] That's right. That's right.

 

Christian: [00:03:11] Making sure that people and business owners and entrepreneurs have the education in order to basically succeed.

 

Bennie: [00:03:17] Absolutely.

 

Aaron: [00:03:18] One thing I was going to point out is that - before we go any farther and Bennie kind of explains this - is he's basically the safe money strategy master over here. So the strategies and stuff we're going to talk about on this episode that Bennie's going to break down for us are all safe money. Right, Bennie?

 

Bennie: [00:03:33] Absolutely. You know, and nothing against anything risk based. We want to just- we think that there is a great place for a lot of people- there's a lot of people out there that just don't understand that they're losing money. One of the favorite quotes of mine is Warren Buffett. He states two things about money. Number one, never lose money. Number two, see rule number one. So. And that's what the main purpose of it is. It's just let's go ahead and educate a lot of people out there who doesn't know. And one of the things is about the rule of 72. A lot of people do know it. It's a simple rule. Albert Einstein said that it was actually one of the eighth wonders of the world. That when he discovered it, pretty much you get the- let's just say if you had a dollar, earning at one percent interest rate and you're dividing 72. So one goes in a 72, how many times?

 

Aaron: [00:04:22] 72 times.

 

Bennie: [00:04:23] OK. Now the question's going to get a lot harder than this, Christian, since you didn't answer.

 

Christian: [00:04:27] I'm not.

 

Bennie: [00:04:27] He's over here pulling out a calculator. So yeah. So one goes into 72. One goes into 72 72 times. So if you've got an interest rate at one percent, it would pretty much take your dollar to turn into $2 automatically in 72 years, and if you actually think about that, if you look at the current CD rate, the current- what is it? .26 percent? I think the last time I looked was .55. So if you actually put .26 percent into the rule of 72, it'll take your money 288 years to double. And how many- 72.

 

Aaron: [00:05:05] I'll probably lived to 300. So I can use that at least once.

 

Bennie: [00:05:09] OK, Moses. Yeah. So we just want to educate people because we were taught at a young age to put our money into the banks, and the reason we like the bank is because it's safe and that's all we knew because our parents did it. It's convenient. It's FDIC insured. So but what's the, you know, the definition of doing the same thing over and over again and expecting different results?

 

Christian: [00:05:37] Insanity.

 

Bennie: [00:05:38] That's right. Insanity. So why's-

 

Aaron: [00:05:39] OK, so Bennie, I guess before we go farther down this bank road or whatever, why are you advocating for us to not put our money in the bank?

 

Bennie: [00:05:49] Well, because- I'm advocating for you not to put your money in the bank is because there are trillions of dollars in the bank system right now earning less than one percent. As I explained to you on the rule of 72. You know, you're keeping your money in the bank for what? I mean, I'm sure that you're probably keeping your money in the bank, right, Aaron?

 

Aaron: [00:06:08] I have some money in the bank, yeah.

 

Bennie: [00:06:09] Don't tell how much you have right now, all right?

 

Aaron: [00:06:13] Tons of zeros.

 

Bennie: [00:06:14] All right. So let me ask you this, is that money for you for retirement?

 

Aaron: [00:06:18] No, that money is not.

 

Bennie: [00:06:19] OK. So and what about you, Christian?

 

Christian: [00:06:21] No.

 

Bennie: [00:06:22] No.

 

Christian: [00:06:22] Not a lot of money in retirement.

 

Bennie: [00:06:23] No two cents. OK. Great. So you know, why I'm advocating this is because a lot of us are living for today. We live in this microwave society that we want to go in and double our money. The reason I'm telling you is that there's other ways to actually put your money into investments, safe investments such as an insurance company. A lot of people don't actually know that you can actually put your money into an insurance company. Yes, you can, Bennie, and the reason being because the bank only insures 26 cents to every dollar of your dollar. 26 cents. An insurance company has to have a dollar and 11 cents to every dollar. Yeah. Makes sense? So let me ask you this, I mean, you have a nice office here. You know, great office. I mean, I'm just- I feel like a president in here. You know.

 

Christian: [00:07:16] Thank you.

 

Aaron: [00:07:16] It's the executive desk.

 

Bennie: [00:07:18] You know, they rolled out the red carpet just for me. So if a tornado, God forbid, was to come through here and tear this office down, let me ask you this, who's going to actually come in and build another one like this? Is it going to be the bank or is it going to be the insurance company?

 

Aaron: [00:07:34] The insure- Well, technically I mean, you want to break down, it's going to be the construction company- I'm just playing with you, Bennie, but the insurance company is going to be the one who pays for it, right?

 

Bennie: [00:07:45] Right. The insurance company's going to come and build one. See, here's the thing. A lot of people don't understand is that, you know, it's insured as well. So with that being said, you put protection on your house. You put protection on your cars, but you don't put protection on your retirement dollars.

 

Aaron: [00:08:04] Bars. Right there. That's what we need to say, right?

 

Bennie: [00:08:07] This is grown people bars right here.

 

Aaron: [00:08:09] Grown people bars. All right, so I mean, the focus here is- or our audience is small business, entrepreneurs, and probably some friends and family, but so let's focus this on to some entrepreneurs and how can they prepare for retirement? And you know, is a 401K a viable option for them? So there's kind of like a two part question in there.

 

Bennie: [00:08:32] OK, well you know, my memory is kind of bad so you're going to have to-

 

Aaron: [00:08:35] I'll repeat the second part of it later.

 

Bennie: [00:08:36] OK. OK. Awesome. So yeah, definitely share that with me. With a 401k, I have nothing against 401ks. I think 401ks are a viable option for retirement. Like I said to the people out there listening, I have nothing against risk-based products, but I think that there's an important place such as the foundation of your retirement money. So excuse me. If you have a 401k out there, I would suggest everyone out there that if it's matching, take it. You know, that's free money, and I think if any adviser or consultant or strategist tells you not to do that, they're telling you wrong. And the reason I'm saying that because if a company is actually matching five percent and you put in 50,000, and let's just say it'd grown up to 100,000, right? In the market because 401k is risk based, right? So if it drops down 50 percent and you had 100,000, how much do you have? Pull out your calculator.

 

Aaron: [00:09:33] I don't know 100,000? 50,000?

 

Bennie: [00:09:35] But there you go. 50,000.

 

Aaron: [00:09:36] 50,000. Oh yes.

 

Bennie: [00:09:37] So let me- ding, ding, ding, ding. You're the next contestant on The Price is Right. So yes, 50,000. So now that you've got the $50,000, now did you lose any money?

 

Aaron: [00:09:47] I'm guessing by the way you asked that we didn't lose money.

 

Bennie: [00:09:50] You didn't. You lost the company's money, right?

 

Christian: [00:09:53] Right.

 

Bennie: [00:09:53] You did because they matched it, right? So now you have a lot of people out there that are actually put in, like, 10 percent and the company's only match five. So now let's put the same scenario. If it dropped down 50 percent, not only did you lose the company's money, but you lost some of your money too. You know, so what we tell you is that the money that you invested, the 5 percent, if you want to actually invest the other 5 percent, let's go ahead and move it to somewhere else. You know, into a safe money strategy such as a tax-free retirement account or index account and which we can actually talk about as well. And I'm sorry. Did I answer that second part of that question there?.

 

Aaron: [00:10:26] You answered the second part absolutely. So then I guess we go back to the first part which was a good preface from the 401k is how can they prepare for retirement?

 

Bennie: [00:10:35] Well, you can actually prepare for retirement such as a tax-free retirement account. Now what a tax-free retirement account is because you put your money into like a savings bucket. You know, just like a holding bucket. A savings bucket. However, we use the S&P 500 as a bench tool. So whatever the market does, we'll go ahead and credit this bucket. Now however, this bucket has a floor which is zero percent. You know, you can credit- you can actually put it into this bucket such as a rollover. You've heard of rollovers. It's Fidelity and Guaranty. You've seen commercials and everything. 1035 exchanges. That's what we can actually do for you, or you would like to do a monthly deposit the same way that you're actually going to a bank. And what happens is that every year, we look at your account and whatever that S&P 500 has done, we'll ahead and credit your account. So let's say the count went up 10 percent. The S&P 500 went up 10 percent, right? We'll credit your account 10 percent. All right. So we just look at it from a 12 month standpoint. We don't look at it every day. We call it the SWAN account. Sleep well at night. Now these accounts have been available for over 26 years. The biggest deposit in tax-free retirement history was right here in good ole Texas, and that's Ross Perot. Why? Because you actually dumped the money in there, and it grows tax free. Now why would I do that? Grows tax free. Now if you know anything about a 401k and some people out there may not know, that you may be sitting on a million dollars in your 401k right now, but let me tell you this, has it already been taxed?

 

Aaron: [00:12:08] Yes, sir. No.

 

Bennie: [00:12:10] No, it has not been taxed.

 

Aaron: [00:12:11] Yeah, afterwards.

 

Christian: [00:12:11] If we take that money out.

 

Bennie: [00:12:13] Yeah, but you take that money out, it will be taxed, right?

 

Aaron: [00:12:16] Right.

 

Bennie: [00:12:16] At one point in time in history, we were taxed at 92 percent. This is not back in 1911, 1920s or 30s. This is in the 50s. All right. 92 percent. All right. So let me ask you this, are the taxes going to drop or are they're going to get a little bit higher?

 

Aaron: [00:12:32] Absolutely higher.

 

Bennie: [00:12:33] OK so let me ask you this, you got your 401k out there, in the next 15 to 20 years can you tell me what the tax rate is going to be then?

 

Aaron: [00:12:42] High.

 

Bennie: [00:12:43] Right. Yeah, that's right. So let's just say if you had a million dollars today and it was 40 percent, you don't have a million dollars. You only have 60,000. All right. So.

 

Aaron: [00:12:53] That's the difference in a house right there.

 

Bennie: [00:12:54] That's a big difference, right? And this is why I'm advocating this because it's about the education, but we can talk more about that, you know, further down the line. And the reason I'm saying that is because a tax-free retirement account, you do the same thing into a tax-free retirement account. That money grows tax free. You've already paid the taxes on it already. All right? Because you can't actually pay taxes on the same dollar more than once. You've already paid a dollar. So what we believe in is taxing the seed and not the harvest. That's right, Uncle Sam. Taxing the seed and not the harvest. So when you're growing that million dollars and at the age of financial independence or retirement, for a lot of people they like to be financially independent, you get to put that money out tax free. Makes sense.

 

Christian: [00:13:39] Awesome. I mean, the thing here is that, you know, Bennie has bombarded us with awesome information, and obviously, we cannot cover every single thing here in this episode. But Bennie, how can people find out about you, your company, and everything that you do?

 

Bennie: [00:13:57] Well, you can actually follow me on Facebook at Purpose Consulting. Instagram, Purpose Speaker or at Purpose Consulting. Twitter, @purposespeaker or @purposeconsulting, and Instagram, Purpose Speaker if you want to actually see a lot of-

 

Aaron: [00:14:14] What about a website? You got a website?

 

Bennie: [00:14:16] Yeah, it's www.purposeconsulting.com.

 

Aaron: [00:14:18] All right. And we know you guys are driving or doing something. So we'll link all that stuff up in the show notes.

 

Bennie: [00:14:23] Thank you. Thank you.

 

Christian: [00:14:24] Yes, we sure will, and you also have a lot of events coming up. Do you have anything coming up that you want to shout out to?

 

Bennie: [00:14:29] Yes. Yes. Thank you. We have a Blue Mesa Grill. Write this down. Blue Mesa Grill at 6:30 p.m. at 8200 Dallas Parkway in Plano October 2nd. So if you're actually in the metroplex area, please come on down. Free dinner on me. Just ask for Bennie Evans, the safe money strategist, and I'll go ahead and pay for your dinner. And then we'll go from there, and we can help you out. And it's free. It's not a sell seminar. We're just here to educate you.

 

Christian: [00:14:56] Awesome.

 

Aaron: [00:14:57] All right. And as always guys, go ahead and pull out your phones. Clicked those three little dots in the right hand corner. Share this episode with somebody who needs some financial advise or your friends, whoever, and we will- well, you'll hear us next week.

 

Bennie: [00:15:13] Awesome.

 

Christian: [00:15:13] See ya.

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