1 00:00:00,040 --> 00:00:02,600 Speaker 1: I bet Joel Larsgard thinks that buying lottery tickets is 2 00:00:02,600 --> 00:00:04,880 Speaker 1: a great investment strategy, don't you, Joel? 3 00:00:06,040 --> 00:00:08,240 Speaker 2: Uh yeah, duh. Doesn't everyone do that? 4 00:00:10,640 --> 00:00:12,120 Speaker 1: Can't? Okay, So just. 5 00:00:12,320 --> 00:00:14,880 Speaker 2: Go the low and slow route, the index fund route, 6 00:00:14,880 --> 00:00:16,480 Speaker 2: when you can just do it all in one fell. 7 00:00:16,360 --> 00:00:18,720 Speaker 1: Swoop, right. My brother and I were having a conversation. 8 00:00:18,800 --> 00:00:20,520 Speaker 1: He said, at this point, I think my retirement plan 9 00:00:20,640 --> 00:00:24,279 Speaker 1: is going to include winning the lottery. 10 00:00:24,400 --> 00:00:26,520 Speaker 2: Yeah, you know, I'm just banking on my kids taking 11 00:00:26,560 --> 00:00:27,880 Speaker 2: care of me and my old age. 12 00:00:27,920 --> 00:00:30,600 Speaker 1: Okay, well, good luck on that. So let's talk about 13 00:00:30,680 --> 00:00:34,680 Speaker 1: kids and the new Trump accounts for kids. 14 00:00:35,760 --> 00:00:38,239 Speaker 2: Let's do that. So this is one of those things. 15 00:00:38,240 --> 00:00:41,080 Speaker 2: We've just got a bunch more information about these accounts 16 00:00:41,159 --> 00:00:44,879 Speaker 2: over the last week, and this was these accounts were 17 00:00:44,920 --> 00:00:48,760 Speaker 2: something that became reality in the One Big Beautiful Bill Act, 18 00:00:49,440 --> 00:00:53,840 Speaker 2: Love saying that every time, and so they're essentially available. 19 00:00:53,920 --> 00:00:56,480 Speaker 2: You can put money into these accounts if you have 20 00:00:56,560 --> 00:00:59,720 Speaker 2: kids who are eighteen and under. But the thing that 21 00:00:59,760 --> 00:01:03,720 Speaker 2: makes these accounts most interesting, because I don't really think 22 00:01:03,720 --> 00:01:06,400 Speaker 2: they make sense for most people, is if you have 23 00:01:06,720 --> 00:01:09,759 Speaker 2: a newborn, because that's when you get free money from 24 00:01:09,920 --> 00:01:13,479 Speaker 2: the government. Under these accounts, one thousand dollars essentially seed 25 00:01:13,520 --> 00:01:16,320 Speaker 2: money that you can invest on behalf of your child 26 00:01:16,319 --> 00:01:19,320 Speaker 2: for their future. And I think there's gonna be a 27 00:01:19,360 --> 00:01:21,360 Speaker 2: lot of confusion around these accounts. We'll probably have to 28 00:01:21,400 --> 00:01:24,200 Speaker 2: keep talking about them, because yes, you could put more 29 00:01:24,200 --> 00:01:27,160 Speaker 2: money in than what the government is giving you, and 30 00:01:27,280 --> 00:01:29,760 Speaker 2: yes you can put money in for kids who are 31 00:01:29,800 --> 00:01:32,080 Speaker 2: even older than newborn, right for your elementary or middle 32 00:01:32,120 --> 00:01:36,280 Speaker 2: school aged kids. The problem is they just aren't the 33 00:01:36,280 --> 00:01:40,480 Speaker 2: best from a tax perspective for everyone. And so I 34 00:01:40,520 --> 00:01:42,800 Speaker 2: love the idea of you know, somebody with a new 35 00:01:42,840 --> 00:01:46,200 Speaker 2: baby getting that free thousand dollars investing that on their 36 00:01:46,240 --> 00:01:48,560 Speaker 2: kids behalf. But I just think there are better accounts 37 00:01:48,560 --> 00:01:53,080 Speaker 2: that people should be more interested in using to build 38 00:01:53,080 --> 00:01:55,880 Speaker 2: wealth through their kids than using those kind of newfangled 39 00:01:55,880 --> 00:01:56,480 Speaker 2: Trump accounts. 40 00:01:56,640 --> 00:02:00,520 Speaker 1: Okay, so but if it so, let's talk about this 41 00:02:00,560 --> 00:02:02,600 Speaker 1: just a little bit, because you're saying there are better 42 00:02:02,640 --> 00:02:07,880 Speaker 1: account accounts out there, but this is a kind of 43 00:02:07,920 --> 00:02:10,400 Speaker 1: a seed money and if you're I mean, why would 44 00:02:10,440 --> 00:02:11,120 Speaker 1: you not take it? 45 00:02:11,800 --> 00:02:13,600 Speaker 2: No, you take it. If you have a new body, 46 00:02:13,639 --> 00:02:16,480 Speaker 2: you take the thousand dollars. You just don't utilize the 47 00:02:16,520 --> 00:02:19,640 Speaker 2: account beyond that. After the three thousand bucks, you just 48 00:02:20,000 --> 00:02:23,040 Speaker 2: indest that money watch it grow. But you turn your 49 00:02:23,080 --> 00:02:25,800 Speaker 2: attention to other accounts, like the five twenty nine account, 50 00:02:26,040 --> 00:02:30,360 Speaker 2: which has become more flexible in recent years, and so 51 00:02:30,480 --> 00:02:33,120 Speaker 2: you can use that for higher education. If you don't 52 00:02:33,120 --> 00:02:34,800 Speaker 2: want to do that, that can be money that can 53 00:02:34,840 --> 00:02:37,160 Speaker 2: be rolled into a roth higher So I guess the 54 00:02:37,240 --> 00:02:39,680 Speaker 2: annoying thing is I mean, aren't we already kind of 55 00:02:39,800 --> 00:02:42,880 Speaker 2: annoyed by the proliferation of retirement accounts? What does each 56 00:02:42,919 --> 00:02:45,440 Speaker 2: one mean? And what are the specific rules for each one? 57 00:02:45,600 --> 00:02:47,840 Speaker 2: My goodness, let's add another one into the mix. I 58 00:02:47,880 --> 00:02:50,280 Speaker 2: wish we could have just used the five twenty nine 59 00:02:50,320 --> 00:02:53,440 Speaker 2: accounts system and found a way to have the government 60 00:02:53,440 --> 00:02:55,400 Speaker 2: contribute a thousand bucks there, But no, we didn't do that. 61 00:02:55,440 --> 00:02:58,240 Speaker 2: We created a new account. The other thing I think 62 00:02:58,280 --> 00:03:02,920 Speaker 2: it's worth mentioning here is entrepreneur Michael Dell announced that 63 00:03:02,960 --> 00:03:05,520 Speaker 2: he's offering an additional two hundred and fifty dollars for 64 00:03:05,639 --> 00:03:08,359 Speaker 2: kids ten and younger, And so this is kind of 65 00:03:08,440 --> 00:03:11,320 Speaker 2: an interesting public private partnership. When I first heard this, 66 00:03:11,440 --> 00:03:13,679 Speaker 2: I was like a little skeptical. I was like, what's 67 00:03:13,680 --> 00:03:17,040 Speaker 2: going on here? But it's kind of cool that he's 68 00:03:17,120 --> 00:03:20,280 Speaker 2: at least he's basically said, hey, I want to see 69 00:03:20,320 --> 00:03:22,760 Speaker 2: not just newborn kids over this three year span. It's 70 00:03:22,760 --> 00:03:24,680 Speaker 2: a very limited run for these Trump accounts. We'll see 71 00:03:24,680 --> 00:03:27,760 Speaker 2: if they get extended. I want to see other kids 72 00:03:28,560 --> 00:03:31,320 Speaker 2: have some money put into their accounts as well. And 73 00:03:31,360 --> 00:03:34,840 Speaker 2: so if you have some kids who are ten or younger, 74 00:03:35,120 --> 00:03:37,000 Speaker 2: they're going to be eligible for this two hundred and 75 00:03:37,000 --> 00:03:40,560 Speaker 2: fifty dollars in free money that Michael Dell is putting up, 76 00:03:40,640 --> 00:03:41,280 Speaker 2: which is great. 77 00:03:41,320 --> 00:03:45,000 Speaker 1: I think anything that you start that you have people 78 00:03:45,040 --> 00:03:48,240 Speaker 1: saving and maybe get that mentality going. I didn't have 79 00:03:48,280 --> 00:03:51,960 Speaker 1: it when we were kids, Like I didn't learn to 80 00:03:52,080 --> 00:03:54,560 Speaker 1: start saving. One of my best friends did. She had 81 00:03:54,560 --> 00:03:56,720 Speaker 1: a five twenty nine account and she would push her kids, Hey, 82 00:03:56,720 --> 00:03:59,360 Speaker 1: when you get fifty bucks, put five in that account. 83 00:03:59,400 --> 00:04:02,080 Speaker 1: And they actually are doing very well. They're like eighteen 84 00:04:02,120 --> 00:04:05,320 Speaker 1: and twenty or nineteen and twenty now and doing great 85 00:04:05,400 --> 00:04:08,000 Speaker 1: because their mom kind of taught them that from the get. 86 00:04:07,800 --> 00:04:11,800 Speaker 2: Go, you know. And I think that's actually as these 87 00:04:11,840 --> 00:04:13,480 Speaker 2: are not my favorite accounts, like I said, I would 88 00:04:13,520 --> 00:04:16,679 Speaker 2: love to see using existing accounts that are already awesome 89 00:04:16,760 --> 00:04:19,360 Speaker 2: that people are using widely and just how the government 90 00:04:19,400 --> 00:04:21,600 Speaker 2: put maybe a little bit of free money into those 91 00:04:21,640 --> 00:04:24,400 Speaker 2: accounts instead of trying to create something brand new. But 92 00:04:24,680 --> 00:04:27,039 Speaker 2: I think that the probably the best thing that's going 93 00:04:27,080 --> 00:04:28,320 Speaker 2: to come from this is kind of like what you're 94 00:04:28,360 --> 00:04:31,320 Speaker 2: talking about. I think we're bound to see young people 95 00:04:31,760 --> 00:04:34,080 Speaker 2: being a little more We're already seeing like gen Z, Hey, 96 00:04:34,120 --> 00:04:38,359 Speaker 2: they're interested in investing in ways that previous generations were not. 97 00:04:38,440 --> 00:04:40,440 Speaker 2: And part of that's just because it's at their fingertips. 98 00:04:40,520 --> 00:04:43,680 Speaker 2: It's easier than ever to pull off. And there's new 99 00:04:43,720 --> 00:04:46,520 Speaker 2: companies like Robinhood that have just made it super simple 100 00:04:46,560 --> 00:04:48,400 Speaker 2: for better or for worse, to be able to become 101 00:04:48,440 --> 00:04:50,520 Speaker 2: an investor. And I think that people are going to 102 00:04:50,520 --> 00:04:51,760 Speaker 2: open these accouts. They are going to be like, wait 103 00:04:51,760 --> 00:04:53,720 Speaker 2: a second, how's that seed money performing. They're going to 104 00:04:54,000 --> 00:04:56,720 Speaker 2: you can you go along with your kids and say, hey, 105 00:04:56,720 --> 00:04:58,880 Speaker 2: that thousand bucks you got for free, you know you're 106 00:04:58,920 --> 00:05:01,200 Speaker 2: eight years old, that's that's worth twenty one hundred dollars 107 00:05:01,200 --> 00:05:02,839 Speaker 2: now because of how we invest it, and then like, 108 00:05:03,040 --> 00:05:05,240 Speaker 2: let's see if it'll double again in the next seven 109 00:05:05,320 --> 00:05:08,080 Speaker 2: or eight years, and that could be seed money for 110 00:05:09,279 --> 00:05:11,400 Speaker 2: school to reduce debt. You have to take on. It 111 00:05:11,400 --> 00:05:14,000 Speaker 2: could be the down payment for a house in the future. 112 00:05:14,320 --> 00:05:16,039 Speaker 2: And I do think that the kind of just getting 113 00:05:16,040 --> 00:05:18,960 Speaker 2: people in that mindset of investing and watching money grow 114 00:05:19,160 --> 00:05:20,720 Speaker 2: from an early age, that could be one of the 115 00:05:20,720 --> 00:05:22,360 Speaker 2: most powerful things that these accounts create. 116 00:05:22,560 --> 00:05:25,400 Speaker 1: Okay, and then real quick because we are out of time, 117 00:05:25,440 --> 00:05:27,480 Speaker 1: but I want to hit on this. You're saying that 118 00:05:27,520 --> 00:05:29,799 Speaker 1: if you can kind of pit Uber and Lyft against 119 00:05:29,839 --> 00:05:31,000 Speaker 1: each other and save some money. 120 00:05:31,520 --> 00:05:34,160 Speaker 2: Yeah, so there's this new new data came out, and 121 00:05:34,440 --> 00:05:36,799 Speaker 2: if you have both of the apps on your account, 122 00:05:36,960 --> 00:05:39,719 Speaker 2: but check both before you take a ride every time, 123 00:05:40,120 --> 00:05:44,000 Speaker 2: because the savings can be significant. The difference on average 124 00:05:44,240 --> 00:05:47,360 Speaker 2: is something like fifteen percent per trip in savings if 125 00:05:47,400 --> 00:05:49,440 Speaker 2: you check both and you go with the cheaper one, Okay, 126 00:05:49,480 --> 00:05:52,120 Speaker 2: but especially on longer trips, it can be a lot 127 00:05:52,120 --> 00:05:54,160 Speaker 2: more in savings. So if you're like, yeah, I want 128 00:05:54,160 --> 00:05:56,559 Speaker 2: to save forty bucks because I'm taking an Uber trip, 129 00:05:56,560 --> 00:05:58,679 Speaker 2: we'll check Lift too. You might just save a lot. 130 00:05:58,960 --> 00:06:01,400 Speaker 1: Okay. Good advice as always that we get from our 131 00:06:01,480 --> 00:06:05,039 Speaker 1: very own Joel Larsgard. And for more great financial advice, 132 00:06:05,080 --> 00:06:07,520 Speaker 1: you can listen to Joel every Sunday from noon to 133 00:06:07,600 --> 00:06:10,680 Speaker 1: two right here on KFI. You can also follow him 134 00:06:10,720 --> 00:06:13,640 Speaker 1: at how to Money Joel. Thank you, Joel Larsgard, Thanks Amy. 135 00:06:13,720 --> 00:06:14,719 Speaker 1: All right, have a great day.