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Can't make your house payments.
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You'll find out as the biggest liability
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you got.
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Many of the times
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It's turned out
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to be very much more correct
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than you even thought, Right.
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When you look at
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what's happened to home prices
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and Donald
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and I love real estate,
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I love real estate.
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I think it's the best thing going
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better than sliced bread.
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But if you're not smart with it,
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it's like a loaded gun.
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You know,
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you can protect yourself
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or can kill yourself with it.
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So real estate is,
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to me, the best vehicle.
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But you have got to be smart with it
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But you have got to be smart with it
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because we're using debt.
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And debt is a two edged
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sword out there.
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So you use debt?
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I used debt,
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but the more debt you use,
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actually, you have to be smarter.
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So you can use debt to get richer.
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You can also use debt
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to wipe you out.
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So that's why,
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you know,
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I continue on saying
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we need financial education
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to just say to somebody,
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get out of debt.
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Well, that's not accurate.
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You debt, don't you?
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Debt is a great thing.
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And to be big and to be very successful,
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debt is a very useful weapon.
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But you have to be very careful.
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That’s correct.
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So the other thing,
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when people say
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live below your means
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you don't like to live
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below your means, do you?
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No. No.
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And I think when you say to somebody
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live below your means,
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you wipe their spirit out.
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It's like saying somebody.
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If you want to lose weight,
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go on a starvation diet.
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It doesn't make you healthier
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to starve yourself.
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So I would rather get
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financially educated.
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That's why I read your books,
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because I want to
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This is my greatest asset.
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I want to feed my brain
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so that I can expand my means
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without getting into excessive debt
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or where I start to lose
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because debt, of course,
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is a two edged sword.
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But telling somebody to live below
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your means is almost inhumane.
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I never felt good doing it.
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I wanted to strive to do better
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every day.
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I want to do better every day.
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I like the good life.
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Like I tell the story of
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taxiing underneath your jet.
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You know,
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I was on my jet,
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but it was a little Learjet.
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I look up
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and there is a
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727, and I taxi under it.
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You know, it's.
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It's big boys and their toys.
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But nonetheless, it inspired me.
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I said, okay, I'm in a Learjet now.
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It's time to step up.
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And it doesn't mean
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the jet will make me happier.
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What makes me happy
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is the wanting to get better,
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to get smarter, to do better.
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Well,
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I have a friend
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who was not successful at all,
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but was really up and coming
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and he had a thing
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he would only fly first class.
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I'm not saying do this
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because for somebody it won't work.
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But he needed that mentally.
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He wanted to fly first class
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because mentally
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he wanted to think he was the best.
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And that's it.
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And even though he didn't
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have much money at the time,
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this is years ago,
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he would always fly.
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I used to criticize him,
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but it put him in a good
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state of mind.
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And he became a very,
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very successful guy.
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Very, very successful.
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And I've always remembered
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that he would never fly coach.
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He would always fly first class,
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even though he didn't
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have the means to fly.
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So, look, it's complicated,
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but whatever it takes to try that,
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whatever makes you feel better
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about yourself, stronger,
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more confident,
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to want to do better.
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And I think really that's the issue.
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When they were at
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the stage of our lives
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right now, we,
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you know, to ask for
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more is not really it.
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But to do better,
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to feel better about ourselves
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is still important.
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That is very important.
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So that's why I don't like saying
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live below your means and scrimp
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and all that because,
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you know, shopping is fun.
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Nice houses are fun.
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At the same time,
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you have to be very careful.
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Yes, but you have to be responsible.
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Correct.
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Like, you know, when
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when you invited us up to your
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your little duplex up here,
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whatever they call it,
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we walked up there
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and I've never seen a two storey
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entire floor home in New York City.
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And my wife Kim, says, you know,
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I never thought
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I never really all live in a condo.
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But she says Mr.
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Trump's house will do
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and it is spectacular.
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You know what I mean and it's
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and yet I don't need that.
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Yes, I don't I don't need that.
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If I had one nice bedroom
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with a good television set
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and a nice bed
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and you don't really need that.
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But it was in a building I built, right.
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And it was there for the taking,
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so I figured I might as well do it.
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And what have I done?
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Instead of selling
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the equivalent of 12
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or 13 units, I kept them.
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And by keeping them, I have them.
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I didn't sell them.
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And that's okay.
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And it's become,
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you know, a very valuable place.
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So I didn't need that.
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I don't need it now,
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but there's something
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nice about it, right?
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And that's my message is achieve it
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and then you can take it or leave it.
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But if you don't achieve it,
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then that's always something
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away from you.
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So again, that's why
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I’d be redundant
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about those living
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below your means.
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I don't think that
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makes your spirit happy.
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It kills your spirit.
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Also,
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if you don't have
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the financial education,
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when somebody says
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your house is an asset
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or these mutual funds are good
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or the stock will go up
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and you don't know the difference
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between a good investment
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and a bad investment,
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because real estate
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can be a bad investment,
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stocks can be a bad investment.
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If you don’t know
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a good investment advice
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from bad investment advice,
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then you're going to get taken.
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This world is not kind
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should we say?
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The hardest thing that
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I've witnessed over
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the last year is seeing people
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that were very hardworking
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and very conservative,
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that invested in the stocks.
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And I'm not talking
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about high flying stocks.
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I'm talking about
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very solid companies.
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And their net worth is 50% of what
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it was a year ago.
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And they haven't
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done anything wrong.
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Right.
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Now they put their money in stocks.
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I guess you could say that's wrong.
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But it's really not wrong, though,
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because historically
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that's been okay.
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So they went into
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conservative stocks
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and a year later, they're worth 50%
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and all they've done is worked.
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And that's the hardest thing
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I've seen.
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It’s tragedy.
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The thing that I want to say is this
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You can invest in gold and lose money.
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You can invest in real estate
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and lose money
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and you can invest in stocks
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and lose money.
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You can invest in oil and lose money.
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You can also make a lot of money,
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all those things.
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So really, the reason
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we get together
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is because your
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financial intelligence,
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your financial I.Q.
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makes something valuable or not value.
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Like I said, you have to know
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a good investment
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from a bad investment.
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Good advice from bad advice.
16571
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