It’s is very clean.

Okay, see you in a little bit.

I can get it to go and meet you in the furniture department.

I’m going to buy a hot dog.

Okay, but I’m starving.

We can eat later.

Not yet. First, I want to go look for a new sofa.

Do you want to grab a bite to eat in the cafeteria first?

And initially, when the rate hike happened, the market was pretty solid. There wasn't any indication that there would be a sell-off.

But that all changed, when the Federal Reserve chairman Jerome Powell made his comments on Wednesday May 3^rd. And the reason the market sold off after his comments was because the market was really hoping Fed Chair Powell would give some clear indication that they would stop increasing short-term interest rates. They would put a pause on rate hikes.

But the Fed chair did not give that clear indication. The Fed chair basically said “Inflation is still too high, and right now, we're not sure if we're going to have to continue increasing interest rates to continue to fight inflation to bring it down to two percent.” You got to understand guys; inflation is still at five percent.

 Well, let's see, um some days I wake up early maybe about six o'clock,  yeah sometimes I wake up at six o'clock.When I get up early I like to get ready for  the day take a shower and have breakfast  but other days I don't like getting up  early, maybe I'll sleep in until 10 or 11.  

Yeah I like sleeping in late, so sometimes I wake  up at 11. On those days, If I know I won't wake up until 1, I'll take a shower the night before.  Before I go to bed. How about you Sarah? When do you usually wake up?

 Well, I like every day to be  the same. So I wake up every day at eight o'clock.  

Eight? Eight, and I always do the same thing first  I make coffee right away then I wake up my kids and we have breakfast together at about 8 30.  Really! Yes, we usually have something easy like bread and yogurt and fruit.

 I like to have coffee  every morning. Whether I wake up at six or at 10  

I'm still gonna have coffee but I often skip  breakfast.

 Do you always eat breakfast every day?

Yes if I don't eat breakfast, I'm so hungry.  What about lunch? What time do you have lunch?  

Lunch is the same every day for  me. I always eat lunch at 12 30 pm.

So, whenever I wake up I do some things  and then I always have lunch at 12 30 pm.  

uh just half past noon and I always have a simple  lunch maybe, some soup or spaghetti or a sandwich something like and it's always at half past noon.  What time do you eat lunch?

That's interesting. I have breakfast at the same time every day but lunch is always at a different time.  

Really? because I'm busy in the morning, I go out,  maybe I go shopping sometimes I clean the house, so I might have lunch at 11 o'clock or  12 o'clock, sometimes as late as 2:30.

Oh, that's getting late.

Yes, but it's always an easy lunch like you. Maybe crackers and cheese or a  

Sandwich or a baked potato.

Hey Amy, how are you today? I'm good thanks,Todd and you? I'm good, pretty good. Let's talk about our favorite things. Okay. What is your favorite food?  

Oh, my favorite food is avocado. Avocado! Honestly! Wow!

How about you? My favorite food is Pizza I think. I love pizza. Oh me  too, I love pizza. It's so good. It's so delicious.

And what is your favorite movie? Well,  my favorite movie is Star Wars. Classic  

I know, and you what is your favorite movie? Well,  I do love Star Wars too, but my favorite movie is  Ferris Bueller's Day all. Oh! I like that movie  a lot, oh very good. Very good. So I was in high school the same time as the movie. Were you?  Yeah. I'm great So cool!  Who is your favorite actor? 

My favorite actor is Jean Renault? The Frenchman?  Yes Yes, he's French but he has been in a lot of   American movies too. Yeah, I like the movie  Leon. I love it. It's very cool. Yes, I agree.

How about you? Uh, my favorite actor is Brad  Pitt, umm, so I like Brad Pitt a lot. He's great.  Yeah, he is good. Very talented.

 Uh, who  I'm sorry what is your favorite season?  

My favorite season is probably spring, I think. Uhm,  it's the cold of winter has passed and it's not too hot yet. So, I think spring. How about you? What's  your favorite eason? Um, oh, my favorite season is fall or Autumn. I love the fall, I love the colors,  um, it is not hot, it is not cold and there are many holidays and my birthday is in the fall.  They are great reasons to love Autum, yeah.

So, when is your birthday? Actually my birthday is also in the Autumn. My birthday is in October.  

Oh, wow, me too, my birthday is in October. That's  right.

What day? 14th

14^th? Yes, And you? The second, uhm, yeah.

Oh, cool! So next year, let's have a birthday party  together. Okay.

 October birthday party. Good idea.

So, what is your favorite City? My favorite  City is probably Osaka.

Oh in Japan?

 Yes yes, so far. Yes Osaka. It's very noisy and colorful  and the people are very open and talkative, so I really enjoyed Osaka.

 Nice. How about you?  What's your favorite city? I think my favorite city is Barcelona. oh in Spain? Yeah, it's very nice. It is. It's warm, it's beautiful, the food is delicious,  

people are nice, but it's expensive.

Right. A  little bit.

Yeah

but Osaka is expensive. That's true.

Very expensive

yep

Okay, thanks.

 Thanks Todd. Bye bye.

 I really would appreciate it.

I want to talk about real estate and investing in the stock market.

And let you guys know how I feel about both

and which one I prefer.

Hopefully that will help you try to determine

 whether you'll do both or whether you'll pick investing in the stock market

or investing in real estate.

Over my 20 years of investing they both have

served me pretty well.

When I think about real estate I think

about my cash on cash return.

Cash on cash return is simply your

initial investment in the property

compared to the cash flow of the property.

for example

 If I put one hundred thousand dollars down

on a one million dollar property

then I have a hundred thousand dollars

invested in that one million dollar

property

I go to a bank and I get the other

nine hundred thousand dollars in the

form of a loan.

when I’m looking at the cash flow of the

property, I'm looking at

the rental income minus

my expenses for the property. Then I take

my cash flow and I divide that by

my initial investment and that will give

me my cash on cash return.

And in most cases

you should be between 8 percent

and 12 percent on your cash on cash return

no sense of getting a 7 percent or less

cash on cash return on real estate.

You can certainly take that money and

invest it elsewhere and get a better return than that.

Now I will tell you over the last 10

years that SP

has returned about a 15 percent return.

That's pretty good.

 So I like both

one of the advantages of real estate is

I get to control my property.

I get to control how much cash flow I can make.

Whereas when I'm investing in an index fund

I have no control of the performance of that index fund.

All I have to go on is the history or the

historical performance of that index fund

in order to give me an indication what I can expect

as future performance of that index fund.

My father left my family when I was two years old. 

And I was raised by a single mom who had to work and who struggled at times to pay the bills and wasn't always able to give us the things that other kids had.

There were times when I missed having a father in my life. There were times when I was lonely and I felt like I didn't fit in.

So, I wasn't always as focused as I should have been on school, and I did some things that I'm not proud of, and I got in more trouble than  I should have.

And my life could have easily taken a turn for the worse. 

But I was lucky. I got a lot of second chances, and I had the opportunity to go to college in law school, and follow my dreams.

My wife our first lady, Michelle Obama, she has a similar story. Neither of her parents had gone to college and they didn't have a lot of money.

But they worked hard and she worked hard so that she could go to the best schools in this country.

But some of you might not have those advantages; maybe you don't have adults in your life who give you the support that you need.

Maybe someone in your family has lost their job and there's not enough money to go around.

Maybe you live in a neighborhood where you don't feel safe. Or have friends who are pressuring you to do things you know aren't right.

Where you are right now doesn't have to determine where you'll end up. No one's written your destiny for you.

Because here in America you write your own destiny. You make your own future.

That's why today I'm calling on each of you to set your own goals for your education. And do everything you can to meet them.

But whatever you resolve to do, I want you to commit to it. I want you to really work at it.

I know that sometimes you get that sense from tv that you can be rich and successful without any hard work, that your ticket to success is through rapping or basketball or being a reality tv star, chances are you're not going to be any of those things.

The truth is, being successful is hard.

Eye doctors and mammograms do not qualify.

I have never had a mammogram, myself.

Okay, so for fun.

but it doesn’t sound fun.

You can do better than that.

No, it is, definitely, not.

I asked what did you do for fun?

I went to an eye doctor’s appointment because I could no longer fix my eye infection on telemedicine. And then I went for a mammogram.

B-Hey, what have you been doing for fun?

O-I have not left home since March 8.

B- At all?

This is pretty cool technology you got here. So, let me try that.