Ep. 230 - Explore Personal Finance and Immigration Impact

  📍 📍 Good day. This is Gabriel Shahin, Certified Financial Planner, and your host of More Knowledge, More Wealth. You're on every weekend, and we're talking about all important topics of personal finance. My job is to go over the knowledge you need to increase your wealth. Now, to the listener, you can always reach out to myself or any one of my colleagues here at Vaughan Wealth Planning.

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How do we get those videos? You tell us what you want to see. And so we have on radio at falconwp. com, you can email us there and we can put a video there at that's radio at falconwp. com for short. And that's why we had a new video on FinCEN. Uh, I'll tell you a little bit about FinCEN a little bit later.

And that is the financial crimes unit of the United States. This is where you have to report outside activity from other countries or outside assets that you have. They just, government wants to know, right? We call them big brother. So keep that in mind as well. But I wanted to talk about just kind of a few topics here, just a few important things that are really just kind of current events.

And I'll talk, like I said, about that FinCEN thing here in just a little bit. And I really wanted to discuss with you, um, just immigration. That's obviously a hot topic here. I mean, nobody likes seeing those pictures. I don't care if you're a Republican or a Democrat, I get it. And it's, it's disturbing to see all the things that are going on.

Uh, and obviously you see some people, just young kids and families and so on, but I think there's two commentaries here. There's, uh, immigration, uh, which is through immigration policy and so on. And then there is. Illegal immigrants. Um, so, uh, I know some people don't like those names, uh, names, illegal aliens and so on and so forth.

So, uh, but the fact of the matter is, uh, just taking a look at what the economic impact is. So historically speaking, the economic impact is these people were just ignored. They would come over, they would come with, uh, pay some coyotes to bring them over the border and to help, uh, come into America. And so.

What now people are getting upset about this could be states like California now providing health care, uh, places like Chicago, New York, uh, providing housing, taking over public areas. Uh, some areas in the country are actually saying you have to live with, uh, people, current residents, some areas and districts that it was a good idea to have their current kids in school be homeschooled or excuse me.

Uh, go to school from working at home, like during COVID on the laptop and having the, uh, people, uh, the kids, uh, go into the school, essentially taking their place. So those are the things getting the negative, uh, feedback. I know places in New York, they're looking to provide roughly, it's about a thousand dollars a month.

To a few families as a pilot program, a 1, 000, which can go towards food, it comes out to like 25 or 35 a day. Uh, I think there was tens of millions of dollars for this program. So these are the things getting attention. So there are like negative impacts, especially now if there are certain initiatives that are paying for housing.

Obviously we just discussed healthcare. So we've typically done that for U. S. citizens through the welfare system, because we do have, for example, in homes, Section 8 housing. We have that in Medi Cal, which in California is, uh, uh, Medi Cal. It's actually a Medicaid system, excuse me. So we do have, so health care, housing, we do have food.

Through food stamps and so on. And we do have healthcare through the Obamacare system, like I was just talking about. So we do have ways to help people that could come up from a tough times. And I get that. I respect that. I like that. And the argument is, is taxpayers are doing that to help each other. And I, yet again, that is a democratic initiative that says let's help the people from the bottom raise up.

And so, and I, I like those ideas and those philosophies, what I don't like is having hard cutoffs where you disincentivize somebody to make money because they'll, if you just because you make an extra 2000 a month, now you're what you take the housing away, the insurance away, food stamps away, that doesn't seem very logical.

And so the issue people are having right now is they're saying illegal aliens are having this, and it's just the economic impact behind this makes no sense. I'll take it a step further. Um, and what people don't fully understand is that Trump who had his immigration policy that passed in 2017, August to be exact, uh, I think it was called the reforming American immigration, uh, for a strong economy rise.

I, I think is, uh, excuse me, RAISE is what it was called. And so what they did was they were looking to reduce levels of legal immigration by 50%. Okay? So this was, uh, uh, you know, having the number of, uh, green cards being issued. Now, uh, this is why you're hearing our current, uh, president and the administration saying, well, this is Trump's fault because you reduced it.

They wouldn't have to come across illegally. I'm not even going to get into that debate. I think that's maybe a silly debate because, uh, uh, the issue I had with the Trump's, uh, campaign, which I know why he did it because there was some terrorist attacks where people would come from the Middle East and they would That gave fake addresses.

The process was completely bad. They had ties to terrorism. And they were coming here and creating terrorist acts. That makes no sense at all. So I get that as well. So everything is balanced. Um, but does it really make sense for somebody from, uh, let's call it Eastern Europe, Middle East, India, China, people with degrees, PhDs, professional professions, that are able to help America prosper.

A lot of our innovation has happened in Eastern Europe. with that. So, I mean, these are items that sometimes gets neglected in the process. By the way, folks, if you're just joining me, you're listening to Gabriel Shane certified financial planner and your host of more knowledge, more wealth here on every weekend.

And we're talking about all important topics of personal plans today. I just thought we'll talk about immigration. Because the idea of this is, is how illegal immigrants hurt the economy. And, you know, I was trying to think about this and I started using Google for this. And so I know there's some, a lot of articles on this and wiki shows all of the, uh, citations on that, which a lot of it could be from the Wharton school, new American economy, uh, center for American progress, uh, some congressman's input, the white house, uh, migration policy.

org. Org, uh, you know, so they're all over the place, right? So I tried to get some critical ones. This one is talking about, uh, specifically kind of, uh, Lipman here. And that is that illegal immigrants actually contribute more than they actually cost in social services. And so when you take a look at what they do and.

The fact that they consume goods and filing, uh, filling millions of essential worker position is actually helping. It's helping in two ways because these are people that nobody wants to do these jobs, right? Cause we are a privileged society. Somebody feels like they've regressed in the world by doing housekeeping, by working agriculture.

Some people even jokingly say, uh, picking, uh, fruits, uh, or, or cotton or whatever it may be. And so. Uh, there's negative connotations to that now. Well, you know, try going south of the border to Rosita, Rosarita and, uh, Ensenada. You'll see a lot of that to this day. That's Mexico. Still need that here in America.

So there are a lot of effects that come in here. And when you look at undocumented workers, how, when you look at, uh, some of this through, uh, you know, DACA eligible population, uh, this is through the, just U. S. economy, just information here where they claim there is, uh, just. Stats on about 1. 3 million residents.

And where they're saying that when you look at just the amount that, uh, the total income it brings in, which is about 23 billion, which relates to 4 billion in taxes paid. Now you may think to yourself, well, the legal doesn't pay taxes. Okay. Well, there are forms of withholding that is done. And on top of that.

Uh, there are still are some taxes that each state imposes as well. Now majority of these undocumented workers, okay, 90 percent of them, uh, when you take a look at them, they're of working age, so they are legally, uh, allowed. So they're over the age of 16. Okay. A majority of them, of course, are foreign born, but the agriculture industry, 13 percent of them, almost 14 percent work in agriculture, over 12 percent in construction, almost 10 percent in admin.

Then you have tourists, hospitality, food services, over 7 percent and general services at six. So there is a large amount that are there. And when you take a look at the, just the total income, yet again, from estimated earnings and tax contributions of undocumented immigrants is about 250 billion, which resulted to over 20 billion for federal, state and almost 12 billion in state and local tax contribution.

So you got to look at, and with just California alone, bringing in 2 billion of, uh, the taxes, uh, When you take a look at how this impacts just everything in general, and you look at, let's just look at the basic immigration process, why immigration is actually good, because when you look at just the population, I always say, as long as the world population continues to grow, the economy will continue to grow.

It's actually basic math. Right? Because more people are breathing, more people are needing to eat, more people are sleeping, and so on and so forth. And when a married couple averages 2. 2 kids, well, they're barely replenishing themselves. If a married couple has two kids, 2. 2, Well, that's barely just surpassing or filling the shoes, and not everybody gets married.

On top of that, not everybody who's married also has kids. So I mean, yet again, it's, we need immigration to keep America continuing to grow. That increases the population, that increases taxes paid. Yes, we just discussed low skilled labor, but some of these people have had substantial impacts in our innovation that we have today.

And so you take it, uh, just continued, uh, effect, like, what does this mean for a business? You now have lower cost of production, which keeps lower prices. Which is for you and I, when we buy at the store, sure. They're making more money in the process too. They're used to, they've got to make their 25 percent margin after everything.

Let's just say now you have people that come in now, whether you do it illegally, uh, illegally or legally, you bring new people to this country. Even if you bring your parents, 65 year old parents into this country, and let's say you're a citizen and they're not, whatever. And let's say they get a green card yet again, whatever.

Well, these people are now going to need to use services. Okay, they're going to now need to buy food, buy clothes, buy items that they're going to be using on a daily basis. This is money that's being gone into the economy versus let's just say you didn't have to do that. You didn't have to take care of mom.

You didn't have to do any of that. Well, guess what? That's just money that sits in your bank. Who makes money off that? Maybe you make a couple of dollars off interest. The bank makes money off your money. You have one industry that benefits from eliminating immigration policy because that assumes you Don't save, uh, uh, spend as much, and you get to save more.

You know, it's funny when you start looking at the effects of this, how, you know, money doesn't disappear, right? It helps one industry versus another. More money in the bank means less you spend, which means more you save. Versus bringing more people that you have to take care of. More tickets to the movie theaters.

More gas, because they need to get around. These are things that stimulates the economy. So, let's say you had more money. What would you do? You're saying you would buy a car and buy a bigger house. Okay, you buy a bigger house. Great. You get a bigger mortgage. So on and so forth. That helps, yet again, the banks.

And same with the cars. Literally, you're just helping only specific certain industries versus multiple industries. You buy a house once, you buy a car once every, what, 10 plus years, right? That is not a long term. Those are luxury items. So versus food and things like that, clothes and things like that.

These are ongoing expenses. It helps the economy more than it hurts. Legal or illegal. The way it's currently being done is incorrect and needs to be fixed. But I do strongly believe immigration policy is what helped America early on, right? We all remember Ellis Island and it's what will continue to help us in the future.

Going forward. Folks, we're going to go on a quick break. When we come back, we're going to discuss some more about the immigration policy. Then I want to talk to you about this new fencing thing that everybody has to fill out if you have a business. It's kind of crazy. Almost everybody. We'll talk about that in just a few moments.

We'll be right back after a few words. 📍

📍 Welcome back folks. This is Gabriel Sheen certified financial planner and your host of more knowledge, more wealth here on every weekend talking about all important topics of personal finance. And today I spent that first segment just talking about the immigration policy and the impact that has on the economy and how it can help with the economy, especially with low skilled labor jobs that most people don't want to do and of course our privileged society.

So then I started talking about the impact that it has on, yes, medical and Medicaid services for health insurance and some states and cities are. Imposing new things to help them with housing and to help them with the food and so on and so forth. And people are getting a little upset saying how they are not paying their share and they're coming here illegally for it.

Now that I get, I'm not upset by that at all. I just want you to know as long as these people are going to plan to go to work, where the average salary on these individuals are 10. 25. I think that's an important highlight because on an average 34 hours per week, that means approximately 8 million US jobs are dependent on activity produced by illegal immigrants.

And it's so crucial to understand that we need these people there. Now I'm not saying illegals, I'm not saying whatnot, I'm saying there should be a better process to screen, to vet and go through the process so we know who's coming across the border. But to think illegals are bad. Illegal immigrants are bad.

Illegal aliens are bad. Well, we don't like aliens. We don't like anything illegal. The process they're getting here is illegal. But a majority of these people are good people. I know we see these videos of these thugs in New York beating up a police officer and then for some stupid reason they're putting them back on the streets and they moved back.

Potentially some of them to California. Like it's, it's crazy. Those are the things that just are designed to piss us off. I, that made no sense to anybody, whether you're Democrat or Republican. I don't know who is against getting illegals who came here, uh, and sending them back across and deporting them to their country to go into their own jail.

Like, I don't know who would be against that. So that could be just a whole political agenda. Quite frankly, I don't care. The idea is the impact this has on you and I, we enjoy our fruits and our vegetables, uh, at a discount. We enjoy low hotel costs. We enjoy that, right? Some of these workers, whether illegal or not, they're there.

Uh, we enjoy a lot of these services that were provided even at the foods, at the restaurants. We, uh, appreciate the construction industry and construction costs not being as high. There are multiple things that we appreciate and that we like. All I'm trying to say is we need these types of people, especially that we still have every single day, 10, 000 Americans retiring because the baby boomers are getting older.

And on top of that, some of this younger generations living off moms and dads where they're not having to work. I mean, it's crazy that we're not saying that this is a recession and I'm not trying to hear get political, just 4 percent unemployment. I mean, we quite frankly, When you, even if you were to remove the illegals in this country, we could be closer to a 10 percent unemployment.

This is why it's important just to understand the broad scope of this. There are people that don't like Trump because of the immigration policy that he passed years ago. And I, and I had somebody say, well, how could I vote for him because of him, I can't, my parents can't come. They don't have the luxury of going to Mexico and walking across the border.

So I've even seen some foreigners, a lot of Asians, a lot of Indians, a lot of middle Easterns, upset at what's happening down south because certain countries need 5, 10, 15 years to wait to get their green card visa to come to America legally. And now that's being hurt. So I understand both sides of the spectrum.

I really do. All I'm trying to say is America was built on immigration policy. Look at Ellis Island. Look at the people that came over. Sure, there's always bad people. They're bad Americans too, you know, but to say a whole race, a whole Latino community or anything like that is bad. And we don't want them in our country.

You don't realize how much you use and need them. And we're not here saying we love or hate anybody, uh, Latinos or Canadians, since they're our neighbors, or people from Europe or Indians, Middle Easterns, Asians, whatever the case is, I'm saying everybody has a need. And to me it makes no sense to deny anybody in this country who wants to provide work, make money, pay taxes, spend the money in this country, that has a PhD, that has a Master's, that has a skill, that has a trade.

And so these are just important concepts that I think we all should understand. And folks, if you have questions on this, you want to talk more about this, you want to see. How this impacts your portfolio, how this impacts international emerging markets, how this impacts your overall us holdings, whether you're holding agricultural stock, whether you're using construction companies, whatever the case is, how immigration policy will impact your portfolio and what you should be doing.

Folks, give us a call. That's why we're offering a free financial assessment, or we'll give you one to two meetings, one to two hours of our time folks at no cost. Our phone number is 855 963 8255. That's 855 96 Falcon, like the bird, where we can help put this together to answer those questions you may have.

I want to spend some time on FinCEN and this has been getting a lot of news. I had a YouTube channel, which, uh, uh, which I've told you about the more knowledge, more wealth under Falcon Wealth planning. And this is a really, uh, been a very popular topic. So FinCEN stands for the Financial Crimes Enforcement Network.

So what this they're actually asking, which our government is asking, I remember Janet Yellen getting in there proud and excited about, Oh, this is going to catch all the terrorist activity and money laundering and all that stuff. I think she's crazy. Um, if you're really a felon or a bad person, or doing illegal things, are you going to go out of your way and put your information on the system?

So whatever, uh, yet again, just in my opinion, humble opinion, I think it's going to catch. Pure stupidity, but here's the thing if you don't do this and you own a company that makes less than five million dollars And if you own that company, it doesn't matter if it's an lc single member lc Whatever the case is if you own it, you have to file this report this report If you don't file it by the end of this year You have a 500 daily fine that maxes out at ten thousand dollars And if you open an account this year or a business this year yet again, it could be just an lc holding company It could be If you open an account this year, it could just be an LLC holding company, something like that.

It doesn't matter. You still have to fill it out. And I think that's an important thing. You have to do it. If you open it this year, you have 90 days to fill out this report. Anything starting next year, which is a 2025, you have 30 days to fill out this report. Oh, by the way, if you move, change your address, anything like that, you also have to update this form after 30 days, there is another.

Penalty. So definitely interesting to do. So this is yet again designed where you have to put in your name, who the beneficial owners are, what the business is, the location of the business. You have to put in your address. You have to put in your date of birth and you have to upload your I. D. I could just see right now.

Uh, hackers getting excited to break into this website. So this is something that people just are not aware of. Heck, I'm in the industry and I didn't even really know about this. I mean, it's kind of crazy that they're enforcing something like this that not everybody knows you have until the end of the year to fill out the Svensson.

Uh, go ahead and click into the, uh, notes or go into our YouTube channel to see the video. There's a bunch of views right now of how to fill out that form. And more importantly, to make sure you get it done. This is something that's sticking around folks yet again. It's the same 10, 000 fine. If you forget to tell the government, if you have accounts in Switzerland, Cayman Highlands, or maybe you're just from China or from India or from the Middle East, that you have money still in your home country, uh, then.

You have to fill that out on your schedule B. You don't even have to really say anything, uh, about how much you just say, this is where it is, uh, especially if you're a U S citizen. Um, so anyway, just important, uh, uh, just, I concepts here that are new, that a lot of people just are not aware of. Fully aware of.

So you have to say where the business is, what company was incorporated in the company address, and you have to go into your personal side. You have to put in all that information. And anybody, if you have a partnership, everybody who has a 25 percent ownership in that company has to input that information.

So if there's four people with 25 percent for people for ideas for things that need to be updated, Okay. into that, uh, uh, FinCEN website. So, uh, keep that in mind. That's FinCEN, F I N C E N dot gov. And yet again, follow the YouTube channel if you need help filling that out. Just kind of crazy things that are happening.

More regulation is upon us. It's a little crazy. They're just throwing this down our throats, especially since it's just hard to even really know about it. Uh, if you have any questions with this, yet again, give us a call. Our phone number 855 963 4255. That's 855 96 Falcon, like the bird, or visit our website at falconwealthplanning.

com. That's falcon, WP. com for short, where you can put in a request, where you can reach out and we'll have somebody of us kind of tell you things that we can do and we can help and point you in the direction of the YouTubes on our knowledge center and so on. Folks, that was a fast, fast show. I want to thank you for tuning in with us this weekend.

You can always reach out to myself or any one of my colleagues here at Falcon Wealth Planning. Our phone number is 855 96 Falcon. 3 25 26 that's 8 5 5 96 falcon like the bird or visit our website at falconwealthplanning. com. That's falcon at WP. com for short where you get this episodes or any one of our previous episodes as well.

And if you wanted to see more things on the knowledge center, cause we've thrown a bunch of stuff on there along with you get previous episodes, whether it's on YouTube, Spotify, podcasts, you name it. We're on there. Uh, send it a request to radio at falconwp. com. That's radio at falconwp. com. That's able how we're supposed to get that, how we are getting so much content on our YouTube folks.

I want you to have a fantastic week, a great weekend and God bless.