Andres Gutierrez: From ELP to El Machete - MPSOS111 [podcast]

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00:40:22

Andres Gutierrez: From ELP to El Machete – MPSOS111 [podcast]

From ELP to El Machete, Andres Gutierrez is the voice of Financial Peace for the Hispanic community. Andres has been helping people with their finances for the past decade but it wasn’t until 2009 that he became “The Hispanic Dave Ramsey” with his own syndicated radio show and a 6 DVD series that teaches Financial Peace principles in Spanish.

I had the rare pleasure of sitting down with Andres Gutierrez

While speaking in the St. Louis area, Andres Gutierrez sat down with me and talked about

How the Hispanic community views money differently
How to reach the community with a message of Financial Peace
How Andres became known as “El Machete pa tu Billete”

Andres is the right guy for this job – reaching out to the Hispanic community. He has a heart to help others, the ability to speak their language (both figuratively and literally), and the talent to perform in front of groups. His DVD series called Paz Financiera is being taught in seven Latin American countries and he is featured on a weekly segment of CVC La Voz that is broadcast to over 400 radio stations.

Dave Ramsey’s 7 Baby Steps: Baby Step #1

Also in this episode we begin a 7 week series that covers all of Dave Ramsey’s Baby Steps.

The first step to getting out of debt and on the road to saving money is to save $1,000 in an emergency fund. This does two things for you: It gives you confidence and it keeps you from going back into debt when an unexpected expense occurs.

To learn more about Andres and his mission:

Thanks to Jose Figueroa for sending in a question for the interview.

Thanks to Scott Marderer for the behind-the-scenes information.

Inspirational Quote of the Week

This week’s Inspirational Quote is a funny-money joke from Andres Gutierrez. He shared this during his speaking event at Ridgecrest Baptist Church in St. Charles, MO:

“An Emergency Fund is like toilet paper: When you need it but don’t have any then it’s URGENTLY needed” (Click to Tweet)

Bonus – Juan Acuff

Steve Stewart says

June 8, 2016 at 8:20 am

Hello Jorge,

The answer to your question depends on a lot of variables: How much time will pass before you retire, how risky of an investment you are willing to take, and how much money you will spend when retired.

Time: It takes time for money to compound and make more money (interests, dividends, increased value, etc). To give you a good answer, I would need to know when you plan to retire.

Risk: Have you heard the saying, “The greater the risk, the greater reward”? Well, that’s true with investing too. Buying bank CDs is extremely safe, but the money won’t grow much. Betting the money in Vegas could result in a huge win, but the risk is you will lose it all (and I’m certainly not recommending – AT ALL).

Spending: What will it cost to pay the bills, buy food, and have a little fun in retirement? Be realistic and set that as an annual goal. Calculate your expected costs, increase it for inflation, and multiply that by 30 (many people live 20-30 years after retiring). That should give you a starting point before choosing an investment. By the way: Eliminate all your debt too – that’s a great way to lower your living costs.

So, to answer your question, “what kind of investment”, depends on your answers. I like mutual funds or index funds with low cost ratios. They are generally reliable, have good returns, and can have tax advantages if used inside a retirement account.

However, $15,000 is not a lot of money. While mutual or index funds are good, you may need more income than what they can generate for your retirement.

A few more investment ideas:

Side-hustle: Creating a side business is a great way to generate extra income. Find something you are good at and someone that needs your help in that area. It doesn’t have to be difficult or complex: Dog sitting doesn’t take a college degree and could really help a family out when they go on summer vacation. Delivering pizzas, cleaning office buildings, and other ideas can create some income – but I want you to think bigger. Think of a business you can start small, grow over time, and eventual hire employees to run the day-to-day operations. This could become a secondary stream of income in retirement and you would no longer have to work IN the business – or you could sell it for a nice chunk of change that can be added to your savings.

Buy a rental property: This isn’t for everyone but buying a rental property (with cash – no mortgage) can create a recurring income for years to come. Of course, this is a bit more complicated because you’ll need to deal with repairs, real estate taxes, and tenants. A bad tenant can be more work than it’s worth – and a vacant rental isn’t good either. Again, I wouldn’t buy one unless I had the money to purchase a rental outright (without the need to take out a mortgage) – so you have time to learn about what it would take to be a landlord while saving up to purchase your first property.

Work longer: The longer you work, the more you can save. If you are eligible for Social Security, then put off receiving benefits for a few more years after you reach full retirement age (65). The benefit increases the longer you wait until age 70.

In summary: I would continue to work hard, save more money and be strategic with what you invest the money into. Speak with a financial advisor for specific advice and learn about the investments before buying or putting money into them. Since you commented on this post, you might consider contacting Andreas. He can be a great help http://www.andresgutierrez.com

And, as always: Pay attention – not interest!

Comments

Jorge Castro says

June 8, 2016 at 6:33 am

I have 51 years old, I saved about 15,000 dollars, I would like to know that I can invest for retirement or take for my money grow every day.
What kind of investment advise me. and with whom I can turn for this help.
- Steve Stewart says
  
  June 8, 2016 at 8:20 am
  
  Hello Jorge,
  
  The answer to your question depends on a lot of variables: How much time will pass before you retire, how risky of an investment you are willing to take, and how much money you will spend when retired.
  
  Time: It takes time for money to compound and make more money (interests, dividends, increased value, etc). To give you a good answer, I would need to know when you plan to retire.
  
  Risk: Have you heard the saying, “The greater the risk, the greater reward”? Well, that’s true with investing too. Buying bank CDs is extremely safe, but the money won’t grow much. Betting the money in Vegas could result in a huge win, but the risk is you will lose it all (and I’m certainly not recommending – AT ALL).
  
  Spending: What will it cost to pay the bills, buy food, and have a little fun in retirement? Be realistic and set that as an annual goal. Calculate your expected costs, increase it for inflation, and multiply that by 30 (many people live 20-30 years after retiring). That should give you a starting point before choosing an investment. By the way: Eliminate all your debt too – that’s a great way to lower your living costs.
  
  So, to answer your question, “what kind of investment”, depends on your answers. I like mutual funds or index funds with low cost ratios. They are generally reliable, have good returns, and can have tax advantages if used inside a retirement account.
  
  However, $15,000 is not a lot of money. While mutual or index funds are good, you may need more income than what they can generate for your retirement.
  
  A few more investment ideas:
  
  Side-hustle: Creating a side business is a great way to generate extra income. Find something you are good at and someone that needs your help in that area. It doesn’t have to be difficult or complex: Dog sitting doesn’t take a college degree and could really help a family out when they go on summer vacation. Delivering pizzas, cleaning office buildings, and other ideas can create some income – but I want you to think bigger. Think of a business you can start small, grow over time, and eventual hire employees to run the day-to-day operations. This could become a secondary stream of income in retirement and you would no longer have to work IN the business – or you could sell it for a nice chunk of change that can be added to your savings.
  
  Buy a rental property: This isn’t for everyone but buying a rental property (with cash – no mortgage) can create a recurring income for years to come. Of course, this is a bit more complicated because you’ll need to deal with repairs, real estate taxes, and tenants. A bad tenant can be more work than it’s worth – and a vacant rental isn’t good either. Again, I wouldn’t buy one unless I had the money to purchase a rental outright (without the need to take out a mortgage) – so you have time to learn about what it would take to be a landlord while saving up to purchase your first property.
  
  Work longer: The longer you work, the more you can save. If you are eligible for Social Security, then put off receiving benefits for a few more years after you reach full retirement age (65). The benefit increases the longer you wait until age 70.
  
  In summary: I would continue to work hard, save more money and be strategic with what you invest the money into. Speak with a financial advisor for specific advice and learn about the investments before buying or putting money into them. Since you commented on this post, you might consider contacting Andreas. He can be a great help http://www.andresgutierrez.com
  
  And, as always: Pay attention – not interest!

I had the rare pleasure of sitting down with Andres Gutierrez

Dave Ramsey’s 7 Baby Steps: Baby Step #1

To learn more about Andres and his mission:

Inspirational Quote of the Week

Reader Interactions

Comments