Valuetainment - June 08, 2020


Episode 475： How To Protect Your Income During A Recession


Episode Stats


Length

5 minutes

Words per minute

205.08862

Word count

1,107

Sentence count

85


Summary

Summaries generated with gmurro/bart-large-finetuned-filtered-spotify-podcast-summ .

In this episode, Pat McAfee talks about the current economic situation in the United States and how to prepare for a Black Swan Event like the one we have experienced in the past and what to do in a similar situation.

Transcript

Transcript generated with Whisper (turbo).
00:00:00.000 So a report just came in that 3.28 million Americans just applied for unemployment.
00:00:26.520 And to just kind of put things in perspective, the second number, biggest number ever of people
00:00:31.920 applying for unemployment was in October of 1982, where 659,000 people applied for unemployment.
00:00:38.960 We went from 659 to 3.28 million.
00:00:42.320 100,000 Californians every day are applying for unemployment, especially now that they
00:00:50.500 announced the $2.2 trillion stimulus, which some are saying it's $1,000 a month.
00:00:54.880 Some of the reports you're reading, it's $600 a week.
00:00:57.800 Whatever the number is, that's where we are today.
00:01:00.040 So when you're looking at this stuff, this is not something we're accustomed to.
00:01:03.440 This is not a number we're used to having this kind of unemployment.
00:01:06.300 But at the same time, I was having a conversation with a few different guys saying, Pat, how
00:01:10.580 do you protect yourself against a loss like this?
00:01:13.360 I mean, you're in the insurance business.
00:01:15.080 You're in the anticipation business.
00:01:16.820 What are you doing with something like this?
00:01:18.400 What's the best kind of insurance for something like this?
00:01:20.460 It isn't life, it isn't auto insurance, it isn't homeowner's insurance, it isn't cell
00:01:25.040 phone insurance, it isn't any of that stuff, although that stuff has got a place for it.
00:01:28.400 The most important thing today for a time like this is income protection insurance.
00:01:34.140 And income protection insurance is based on a few things that you need to do.
00:01:38.780 So let me set that part aside.
00:01:40.360 Let me give you a complete different side that we have to look at.
00:01:42.460 Look, 2001, 9-11 happens.
00:01:45.140 2008, market crashes.
00:01:46.380 2020, we have the pandemic.
00:01:48.520 2001 and 2020 have a lot in common because they're both a black swan.
00:01:51.620 Nobody could have predicted it.
00:01:53.180 2008, a lot of experts could have predicted it.
00:01:55.020 That's why Big Short Movie came out.
00:01:56.980 So what would you do with a time like this?
00:01:58.380 There's three different types of people today.
00:02:00.740 The first group are those that are relying on the stimulus to come.
00:02:04.700 I can't wait for my unemployment and the $1,000 check and the $600 a week for 39 weeks.
00:02:10.100 That's awesome.
00:02:11.420 I can't wait for this.
00:02:12.260 I'm going to stay home.
00:02:12.840 I'm going to catch up on movies.
00:02:13.840 I'm going to do all this other stuff.
00:02:14.780 They're just so glad that the government's bailing them out.
00:02:17.820 The second group is the one that's like, listen, I don't need government's help.
00:02:21.920 I'm okay.
00:02:22.820 I've saved money.
00:02:24.040 I already experienced it once in 2001.
00:02:26.120 I didn't want to experience it again.
00:02:27.520 I already went through in 2008 when I lost a lot of money.
00:02:30.040 I told myself that will never happen to me again.
00:02:32.260 I don't need the government's bailout.
00:02:33.520 I'm going to be okay.
00:02:34.180 I've saved money.
00:02:34.720 I've been preparing for this time.
00:02:35.840 I'm going to be fine.
00:02:37.100 Then there's a third group of people that are saying, I am being forced to change.
00:02:42.460 And Pat, I can't stand it.
00:02:44.600 I don't like where I'm at right now.
00:02:46.640 And the reality of it is we change in two different ways.
00:02:48.800 One is by choice.
00:02:49.460 One is by force.
00:02:50.380 Many people today are being forced to change.
00:02:52.740 So those of you that are in the third group where you're saying, I kind of want to make
00:02:58.740 sure this never happens to me ever again.
00:03:00.800 What do I do?
00:03:01.700 Let me kind of give you a few things to be thinking about.
00:03:04.000 Number one, these are the time when you realize the skill set of pivoting and adjusting.
00:03:08.240 Whoever knows how to pivot and adjust, they have an edge over everybody else.
00:03:11.360 Just know most people are going to watch what everybody else is going to be doing.
00:03:15.060 A few people are going to be pivoting, adjusting, pivoting, adjusting with current times.
00:03:19.140 Because again, we've never been through this before to pivot and adjust.
00:03:23.020 That's one skill set.
00:03:24.200 It's a mindset.
00:03:24.880 You got to learn what to do.
00:03:25.760 The other part, well, economically to talk about the income protection is knowing what
00:03:32.500 kind of skills pay today.
00:03:34.940 For instance, if you don't know how to Zoom, you got to learn how to Zoom.
00:03:37.940 If you don't know how to do webinars, you need to learn how to do webinars.
00:03:40.620 If you're not a person that FaceTimes a lot, you need to learn how to do FaceTime.
00:03:43.840 If you're not somebody on Facebook or social media or Instagram that goes live, you need
00:03:47.400 to learn how to do that.
00:03:48.140 If you're not a social media person, you need to learn how to do that.
00:03:50.500 If you don't create content, you may need to learn how to do that.
00:03:53.060 If you don't have a service to sell that's not a physical product today, maybe you need
00:03:58.220 to learn how to sell a service today.
00:04:00.400 If you're not a good salesperson, maybe you need to learn how to sell today because those
00:04:04.660 skill sets are required today.
00:04:06.260 So when this happens, the income protection, the insurance policy for your income protection is knowing that you know how to make money when everything is fine, but you also know how to make money when the economic growth of 128 months in a row, expansion stops, you also know how to make money in times like this because many people do.
00:04:26.580 So again, first group, can't help you. Watch all the movies you want. Second group, you don't need my help. You're already doing fine. Third group, pivot, adjust, learn the skill sets, find a service, a product that you can sell today and if you're not getting sales, go learn how to sell today and then a year, two years, three years from now when everything recovers, you'll look back and say, you know what, I'm prepared for the next one.
00:04:49.380 I don't want it to happen, but I just know every 10 years a crisis is going to happen and when it happens, I'm definitely going to be protected and the same thing's not going to happen to me as it did in 2020.
00:04:59.440 Thanks everybody for listening and by the way, if you haven't already subscribed to Valuetainment on iTunes, please do so. Give us a five star, write a review if you haven't already and if you have any questions for me that you may have, you can always find me on Snapchat, Instagram, Facebook or YouTube.
00:05:14.160 Just search my name, Patrick David and I actually do respond back when you snap me or send me a message on Instagram. With that being said, have a great day today. Take care everybody. Bye-bye.