1 00:00:00,080 --> 00:00:03,720 Speaker 1: Joel Larsgard, the host of How to Money Sunday twelve. 2 00:00:03,800 --> 00:00:05,960 Speaker 1: You have the two pm or right here on KFI. 3 00:00:06,720 --> 00:00:10,240 Speaker 1: His address social address at how to Money Joel. His 4 00:00:10,360 --> 00:00:14,760 Speaker 1: website is howto Money dot com. And good morning Joel, 5 00:00:15,280 --> 00:00:18,239 Speaker 1: Morning Bill. Okay, let's get right to it, because we 6 00:00:18,280 --> 00:00:22,919 Speaker 1: have a fair amount to cover. As everyone knows that 7 00:00:23,360 --> 00:00:26,840 Speaker 1: gambling has swept the United States. It used to be 8 00:00:28,040 --> 00:00:30,440 Speaker 1: most states did not allow it, and it was just 9 00:00:30,520 --> 00:00:31,880 Speaker 1: Las Vegas for the most part. 10 00:00:32,000 --> 00:00:33,360 Speaker 2: Now everybody does it. 11 00:00:33,600 --> 00:00:36,040 Speaker 1: You can do it online, you do it from your device, 12 00:00:36,640 --> 00:00:39,919 Speaker 1: and of course the number of people that are actually 13 00:00:39,960 --> 00:00:45,040 Speaker 1: gambling has exploded. At the same time, it's become a 14 00:00:45,240 --> 00:00:47,800 Speaker 1: huge problem. And Joel, would you get into that for 15 00:00:47,800 --> 00:00:48,200 Speaker 1: a moment. 16 00:00:49,200 --> 00:00:53,280 Speaker 3: Yeah, So it really is becoming a problem as the 17 00:00:53,320 --> 00:00:56,840 Speaker 3: vast majority of states have now legalized sports betting. And 18 00:00:56,880 --> 00:00:59,440 Speaker 3: let's be honest, there are ways even around it if 19 00:00:59,520 --> 00:01:02,920 Speaker 3: your state says, actually it's not legal. That there are 20 00:01:02,920 --> 00:01:06,640 Speaker 3: people be a VPN like partaking and you can't watch 21 00:01:06,680 --> 00:01:10,199 Speaker 3: a sporting event without getting inundated with ads for the stuff. 22 00:01:10,240 --> 00:01:12,160 Speaker 3: And it's your favorite celebrities and stuff like that, and 23 00:01:12,160 --> 00:01:14,720 Speaker 3: it's so normalized and people are just like, oh man, 24 00:01:14,360 --> 00:01:17,039 Speaker 3: it's gonna up my enjoyment of the game if I 25 00:01:17,040 --> 00:01:19,759 Speaker 3: can bet on not just my favorite team, but if 26 00:01:19,760 --> 00:01:23,399 Speaker 3: I can bet on really a lot of interesting like 27 00:01:23,720 --> 00:01:27,360 Speaker 3: parlays and prop bets and stuff like that. And so 28 00:01:27,600 --> 00:01:30,600 Speaker 3: it's gotten even just more nefarious and integrated with the 29 00:01:30,640 --> 00:01:34,319 Speaker 3: sports themselves, and people are finding it. If you look 30 00:01:34,360 --> 00:01:38,280 Speaker 3: at the stats, like in states where sports betting was legal, 31 00:01:38,880 --> 00:01:41,640 Speaker 3: we're seeing a lot more calls to the National Problem 32 00:01:41,760 --> 00:01:45,640 Speaker 3: Gambling Helpline, and so it just looks like addiction is 33 00:01:45,840 --> 00:01:48,160 Speaker 3: on the rise and people are betting money that they 34 00:01:48,160 --> 00:01:49,040 Speaker 3: can't afford to lose. 35 00:01:49,520 --> 00:01:52,919 Speaker 1: Yeah, and it's your point when you see these ads 36 00:01:52,960 --> 00:01:58,360 Speaker 1: for the websites where you can sports. 37 00:01:57,880 --> 00:01:59,880 Speaker 2: Bet, and I mean this has become a huge business. 38 00:02:00,120 --> 00:02:03,840 Speaker 1: You know, at the bottom there's a disclaimer you should 39 00:02:03,920 --> 00:02:07,600 Speaker 1: game responsibly and then they give you the odds right 40 00:02:07,640 --> 00:02:10,800 Speaker 1: there on the game of the week. Now, I don't 41 00:02:10,840 --> 00:02:14,440 Speaker 1: know if you remember Rich Barata used to be on 42 00:02:14,480 --> 00:02:17,560 Speaker 1: this show. He was our sports guy. Yeah, and he 43 00:02:17,639 --> 00:02:20,359 Speaker 1: now lives in Reno. Every day he goes to the 44 00:02:20,400 --> 00:02:24,840 Speaker 1: sports book at the hotel, which is another one the 45 00:02:24,880 --> 00:02:25,520 Speaker 1: sports book. 46 00:02:26,120 --> 00:02:29,760 Speaker 2: As you play, you gamble like crazy. 47 00:02:30,639 --> 00:02:34,640 Speaker 1: It used to be just Las Vegas, and people realized, Wow, 48 00:02:34,960 --> 00:02:38,799 Speaker 1: there's a real money situation here. So I guess it's 49 00:02:38,800 --> 00:02:40,920 Speaker 1: a growth business among psychologists. 50 00:02:42,000 --> 00:02:45,320 Speaker 2: Who knows. I mean, if I shrink, that's where I 51 00:02:45,320 --> 00:02:48,440 Speaker 2: would go. It's just interesting. 52 00:02:48,520 --> 00:02:51,920 Speaker 3: It's interesting to see just how far this kind of 53 00:02:52,240 --> 00:02:57,239 Speaker 3: gamblification of America is going. So Like, not only is 54 00:02:57,280 --> 00:02:59,640 Speaker 3: it sports gamely I think that was kind of the 55 00:02:59,680 --> 00:03:03,440 Speaker 3: typic spear in Robinhood even just announced that they're launching 56 00:03:03,560 --> 00:03:06,720 Speaker 3: NFL parlay and prop bets on their prediction market platform. 57 00:03:06,760 --> 00:03:09,480 Speaker 3: But we're starting to see the rise of these prediction 58 00:03:09,560 --> 00:03:13,399 Speaker 3: markets too, where you can well, it's not it's not gambling, 59 00:03:13,680 --> 00:03:15,960 Speaker 3: you're you're I don't know how they can they can 60 00:03:16,000 --> 00:03:17,920 Speaker 3: say that it's not gambling, but you can bet on 61 00:03:18,400 --> 00:03:20,600 Speaker 3: essentially what's going to happen in the news. Like there 62 00:03:20,600 --> 00:03:22,440 Speaker 3: are just a trillion things that you can bet on 63 00:03:22,480 --> 00:03:27,679 Speaker 3: now via like Kalshi and services like that, and it's 64 00:03:27,760 --> 00:03:29,680 Speaker 3: just it's kind of interesting. I think people are getting 65 00:03:29,760 --> 00:03:33,320 Speaker 3: sucked in and they don't realize it seems like it's 66 00:03:33,360 --> 00:03:35,200 Speaker 3: no harm, no foul betting on who's going to win 67 00:03:35,280 --> 00:03:38,120 Speaker 3: a certain political race or something like that, and it 68 00:03:38,160 --> 00:03:41,360 Speaker 3: is interesting how how correct a lot of these predictions 69 00:03:41,440 --> 00:03:44,480 Speaker 3: markets have been, But that doesn't mean that it's not 70 00:03:44,640 --> 00:03:46,680 Speaker 3: risky for a lot of people. And even to just 71 00:03:46,720 --> 00:03:49,960 Speaker 3: take this further, I heard about this app and website 72 00:03:50,160 --> 00:03:53,600 Speaker 3: this week. It's essentially this new credit card that's supposed 73 00:03:53,600 --> 00:03:57,160 Speaker 3: to launch in twenty twenty six. It's called Cupboard, and 74 00:03:57,240 --> 00:04:01,400 Speaker 3: it's backed by the deepest pockets in silicon And basically 75 00:04:01,800 --> 00:04:04,400 Speaker 3: this is the craziest thing they build their services, paying 76 00:04:04,400 --> 00:04:08,160 Speaker 3: bills made fun and it's if that's not a red flag, 77 00:04:08,160 --> 00:04:11,480 Speaker 3: I don't know what is. Essentially, it's this credit card 78 00:04:11,480 --> 00:04:13,280 Speaker 3: that comes with cash back up to one hundred percent, 79 00:04:13,320 --> 00:04:15,840 Speaker 3: they say, And that's because you can essentially gamble on 80 00:04:15,880 --> 00:04:19,440 Speaker 3: the back end, potentially losing more money in hopes to 81 00:04:19,480 --> 00:04:21,200 Speaker 3: have some of those purchases that you made on that 82 00:04:21,279 --> 00:04:25,080 Speaker 3: credit card covered by this company. And it's just like 83 00:04:25,400 --> 00:04:27,040 Speaker 3: it just feels like it's gambling all the way down 84 00:04:27,080 --> 00:04:28,200 Speaker 3: in the United States right now. 85 00:04:28,520 --> 00:04:32,080 Speaker 1: By the way, good word gam gamblification. Ooh that really 86 00:04:32,080 --> 00:04:35,359 Speaker 1: impressed me. Oh any thing about gambling, which is so funny. 87 00:04:35,400 --> 00:04:38,280 Speaker 1: If you go to any police department and you go 88 00:04:38,360 --> 00:04:42,159 Speaker 1: to their vice squad and they're the ones that go 89 00:04:42,279 --> 00:04:46,800 Speaker 1: after illegal gambling. Try going there in New Year's Day 90 00:04:46,800 --> 00:04:50,240 Speaker 1: and see how many or in early February and see 91 00:04:50,240 --> 00:04:53,479 Speaker 1: how many of people in the squad bet on the 92 00:04:53,520 --> 00:04:58,839 Speaker 1: super Bowl. That's just something every bit has. We have 93 00:04:58,880 --> 00:05:01,640 Speaker 1: a pool here, don't we, Amy, Do you have a 94 00:05:01,640 --> 00:05:07,520 Speaker 1: football pool around or kno, we used to have football pool. 95 00:05:07,600 --> 00:05:09,599 Speaker 2: I wish well, and I think you start. 96 00:05:10,160 --> 00:05:12,160 Speaker 3: There's like a little bit of a difference right between 97 00:05:12,279 --> 00:05:16,080 Speaker 3: the friendly office bet on the NCAA bracket or who's 98 00:05:16,120 --> 00:05:18,520 Speaker 3: going to win the Super Bowl or so somebody in 99 00:05:18,560 --> 00:05:20,800 Speaker 3: the office usually buys right, like a bunch of lottery 100 00:05:20,800 --> 00:05:22,880 Speaker 3: tickets and their moon chips in a little bit that 101 00:05:22,880 --> 00:05:27,359 Speaker 3: that seems harmless compared to instant access to all sorts 102 00:05:27,360 --> 00:05:30,679 Speaker 3: of various betting types in our pockets at one hundred 103 00:05:30,680 --> 00:05:33,479 Speaker 3: percent of the time. That to me is where people 104 00:05:33,480 --> 00:05:35,480 Speaker 3: are getting in trouble and they don't know how to 105 00:05:35,480 --> 00:05:38,920 Speaker 3: stop themselves. And when we're incentivizing it, and when states 106 00:05:38,920 --> 00:05:40,160 Speaker 3: are making money off of it, I think this is 107 00:05:40,200 --> 00:05:42,520 Speaker 3: only gonna be going to become more of a problem. 108 00:05:42,440 --> 00:05:43,400 Speaker 2: All right, Joel. 109 00:05:43,520 --> 00:05:47,400 Speaker 1: People moving out of the United States, and I know 110 00:05:47,440 --> 00:05:49,960 Speaker 1: people that have moved out not because of money, but 111 00:05:50,200 --> 00:05:55,160 Speaker 1: because of the political climate, that's a real thing going on. 112 00:05:55,320 --> 00:05:58,760 Speaker 1: But a lot of people moving over because saving money. 113 00:05:59,160 --> 00:06:01,479 Speaker 1: So let's talk about that. How much money do you 114 00:06:01,520 --> 00:06:04,200 Speaker 1: save And is it worth the hassle moving overseas, because 115 00:06:04,200 --> 00:06:05,160 Speaker 1: that's no small deal. 116 00:06:05,960 --> 00:06:06,440 Speaker 2: No it's not. 117 00:06:06,800 --> 00:06:09,159 Speaker 3: And yeah, whether you save money, how much money you 118 00:06:09,240 --> 00:06:12,000 Speaker 3: save depends on where you go, depends on whether you're 119 00:06:12,040 --> 00:06:14,920 Speaker 3: still able to make an income from that new place 120 00:06:14,960 --> 00:06:17,760 Speaker 3: that you're moving. Can you still retain Like we had 121 00:06:17,760 --> 00:06:21,000 Speaker 3: a listener reaching out recently and he's like going back 122 00:06:21,040 --> 00:06:23,120 Speaker 3: to India to take care of his parents if he's 123 00:06:23,160 --> 00:06:26,800 Speaker 3: able to continue to keep his job that's over here 124 00:06:26,800 --> 00:06:29,200 Speaker 3: in the United States. It's like in the tech sector, man, 125 00:06:29,240 --> 00:06:31,039 Speaker 3: he's going to crush because the cost of living is 126 00:06:31,080 --> 00:06:34,320 Speaker 3: so much more affordable in India. And that's kind of 127 00:06:34,320 --> 00:06:37,320 Speaker 3: an extreme case and one that's going back to take 128 00:06:37,320 --> 00:06:41,000 Speaker 3: care of family. But there's been just a surge of people, 129 00:06:41,160 --> 00:06:44,560 Speaker 3: especially middle class people, deciding that they want to move 130 00:06:44,680 --> 00:06:47,000 Speaker 3: overseas because they think it's going to save the money. 131 00:06:47,000 --> 00:06:50,719 Speaker 3: It's just the concept is called geographic arbitrage, and it's true, 132 00:06:50,760 --> 00:06:52,599 Speaker 3: like if you're able to keep your same income or 133 00:06:52,600 --> 00:06:54,840 Speaker 3: even let's say you've built up enough if you're getting 134 00:06:54,839 --> 00:06:57,080 Speaker 3: close to retirement age. I had a neighbor a few 135 00:06:57,120 --> 00:07:00,000 Speaker 3: years ago moved down to Panama because she was like, Hey, 136 00:07:00,080 --> 00:07:03,080 Speaker 3: I've saved decently well, but guess what, My retirement's going 137 00:07:03,120 --> 00:07:05,279 Speaker 3: to be a whole lot more plush down in Panama 138 00:07:05,320 --> 00:07:06,920 Speaker 3: than it is if I stay here in the United States. 139 00:07:06,960 --> 00:07:08,760 Speaker 3: And that's just because the cost of living is something 140 00:07:08,800 --> 00:07:11,080 Speaker 3: like thirty percent cheaper. So there's a lot of options 141 00:07:11,120 --> 00:07:14,040 Speaker 3: for people to move other places if they're so inclined 142 00:07:14,320 --> 00:07:15,520 Speaker 3: to search the dollar further. 143 00:07:16,160 --> 00:07:19,320 Speaker 1: Yeah, retired people, it's an easy PC thing to do. 144 00:07:19,640 --> 00:07:24,600 Speaker 1: For example, down in Baja and I think near Rosa, Rita, 145 00:07:24,720 --> 00:07:28,800 Speaker 1: or near maybe Yeah, I don't know the name of 146 00:07:28,840 --> 00:07:32,400 Speaker 1: the community, but it's like fifty thousand Americans there, and 147 00:07:32,720 --> 00:07:35,280 Speaker 1: you can live like a king on twelve hundred dollars 148 00:07:35,320 --> 00:07:39,120 Speaker 1: a month, and twelve hundred dollars a month here is nothing, 149 00:07:39,480 --> 00:07:42,880 Speaker 1: And so people move. But how those places got You know, 150 00:07:42,920 --> 00:07:46,040 Speaker 1: everybody knows that at this point that when I retire, 151 00:07:46,720 --> 00:07:48,720 Speaker 1: I'm definitely gonna live part of my time in Italy 152 00:07:48,920 --> 00:07:50,680 Speaker 1: because I just happened to be in love with Italy. 153 00:07:50,720 --> 00:07:54,640 Speaker 1: But then I'm not working, so other than a remote 154 00:07:54,680 --> 00:07:57,120 Speaker 1: work you can do, you're kind of out of luck 155 00:07:57,120 --> 00:08:00,480 Speaker 1: because you can't work overseas unless you're citizen. 156 00:08:01,480 --> 00:08:05,760 Speaker 2: So how do you do it? Yeah? How do you 157 00:08:05,800 --> 00:08:06,480 Speaker 2: put that together? 158 00:08:07,200 --> 00:08:10,600 Speaker 3: Right? And that's that is the thing that people struggle 159 00:08:10,640 --> 00:08:12,440 Speaker 3: with the most if they aren't able to keep some 160 00:08:12,600 --> 00:08:15,360 Speaker 3: sort of if they have their own business, small business, 161 00:08:15,440 --> 00:08:17,840 Speaker 3: let's say, then you can kind of often do that, 162 00:08:17,920 --> 00:08:20,640 Speaker 3: let's say, from anywhere, depending on what your business is, 163 00:08:20,680 --> 00:08:22,880 Speaker 3: if it's like an online business. So you see that, 164 00:08:23,360 --> 00:08:28,280 Speaker 3: especially with Puerto Rico, right, there are significant tax benefits 165 00:08:28,320 --> 00:08:30,440 Speaker 3: for moving to Puerto Rico. Puerto Rico has this thing 166 00:08:30,520 --> 00:08:35,000 Speaker 3: called Acts sixty, which allows people who establish residency there 167 00:08:35,400 --> 00:08:38,839 Speaker 3: to pay a whole lot less in tax just by 168 00:08:38,840 --> 00:08:40,880 Speaker 3: living on that island. And really for Puerto Rico, it's 169 00:08:40,880 --> 00:08:44,240 Speaker 3: an incentive to get people to build businesses down there, 170 00:08:44,240 --> 00:08:46,720 Speaker 3: for people who are investors to move down there, so 171 00:08:46,760 --> 00:08:49,400 Speaker 3: that to build up the Puerto Rican economy. And so 172 00:08:49,520 --> 00:08:52,600 Speaker 3: that's another angle that people take when they're thinking about 173 00:08:52,600 --> 00:08:55,000 Speaker 3: moving abroad. Oh well, hey, if taxes are one of 174 00:08:55,000 --> 00:08:57,680 Speaker 3: my main problems that I face, and I'm trying to 175 00:08:57,720 --> 00:09:01,120 Speaker 3: reduce my tax burden, Puerto ric Go. Sure looks good. 176 00:09:01,200 --> 00:09:02,599 Speaker 2: Yeah, And so really. 177 00:09:02,360 --> 00:09:04,680 Speaker 3: People kind of come with all these different ways. 178 00:09:04,720 --> 00:09:04,920 Speaker 2: Man. 179 00:09:05,000 --> 00:09:07,360 Speaker 3: Maybe it's just like, hey, I don't need as much money. 180 00:09:08,080 --> 00:09:11,040 Speaker 3: Kind of I'm semi financially independent. But guess what, I 181 00:09:11,080 --> 00:09:14,400 Speaker 3: am financially independent. If I move to Portugal or I've 182 00:09:14,400 --> 00:09:16,079 Speaker 3: got a tax problem, Puerto Rico is going to help 183 00:09:16,120 --> 00:09:18,360 Speaker 3: me solve that. There's just it's so much depends on 184 00:09:18,400 --> 00:09:21,440 Speaker 3: the particular situation and where somebody's wanting to move. 185 00:09:21,520 --> 00:09:24,080 Speaker 1: You know, I know of two people who have moved 186 00:09:24,400 --> 00:09:29,040 Speaker 1: to Puerto Rico. And these are high net worth people 187 00:09:29,120 --> 00:09:32,960 Speaker 1: who are still working and make buckets of money, and 188 00:09:33,000 --> 00:09:35,920 Speaker 1: they've moved to Puerto Rico where taxes are Keep in mind, 189 00:09:35,960 --> 00:09:39,160 Speaker 1: here in California, it's fifty percent taxes if you're making 190 00:09:39,720 --> 00:09:42,319 Speaker 1: like over a million dollars a year, and these people 191 00:09:42,400 --> 00:09:45,320 Speaker 1: make way north of a million dollars a year. Taxes 192 00:09:45,360 --> 00:09:48,120 Speaker 1: in Puerto Rico are between seven and eight percent. If 193 00:09:48,160 --> 00:09:51,480 Speaker 1: you look at all the programs, I mean, there's only 194 00:09:51,520 --> 00:09:54,640 Speaker 1: one downside by the way to moving to Puerto Rico, 195 00:09:55,160 --> 00:09:57,520 Speaker 1: and it's moving to Puerto Rico. 196 00:09:58,679 --> 00:10:00,520 Speaker 3: Well that's the thing. Some people do it for a 197 00:10:00,559 --> 00:10:03,400 Speaker 3: few years in an effort to like, you know, be 198 00:10:03,440 --> 00:10:07,160 Speaker 3: able to unload some stocks and avoid some capital gains 199 00:10:07,160 --> 00:10:09,480 Speaker 3: taxes and stuff like that, or build a business and 200 00:10:09,559 --> 00:10:11,720 Speaker 3: avoid you know, tax for a little while, but then 201 00:10:11,760 --> 00:10:14,400 Speaker 3: they end up moving back or there are some big 202 00:10:14,520 --> 00:10:17,640 Speaker 3: XPAC communities there though where and I just this is 203 00:10:17,679 --> 00:10:20,400 Speaker 3: not one of those things where most people are going 204 00:10:20,480 --> 00:10:23,120 Speaker 3: to think about this or decide to act on it. 205 00:10:23,160 --> 00:10:25,920 Speaker 3: But it's also just one of those interesting kind of 206 00:10:26,240 --> 00:10:28,600 Speaker 3: I mean, even just moving from one place to another 207 00:10:28,640 --> 00:10:30,920 Speaker 3: inside of the United States. As Americans, we've done that 208 00:10:31,040 --> 00:10:33,280 Speaker 3: less and less, but just moving from a high cost 209 00:10:33,320 --> 00:10:35,360 Speaker 3: of living place to a lower cost of living place. 210 00:10:35,640 --> 00:10:38,480 Speaker 3: It's fascinating to see how and a lot of people 211 00:10:38,480 --> 00:10:40,800 Speaker 3: are doing that, especially during COVID, saying I'll move them 212 00:10:40,800 --> 00:10:43,439 Speaker 3: out to the excerbs and and buying a house. I 213 00:10:43,520 --> 00:10:46,200 Speaker 3: got more property and guess what, I've reduced my living expenses. 214 00:10:46,200 --> 00:10:47,800 Speaker 3: At the same time, there are a lot of ways 215 00:10:48,080 --> 00:10:51,439 Speaker 3: to skin the cat of reducing how much money you 216 00:10:51,440 --> 00:10:53,920 Speaker 3: pay in tax, of reducing your overall living expenses, and 217 00:10:53,920 --> 00:10:55,400 Speaker 3: thinking outside the box can be helpful. 218 00:10:55,800 --> 00:10:58,079 Speaker 1: Yeah, one of the things. And then we're gonna bail 219 00:10:58,120 --> 00:11:00,920 Speaker 1: out and we'll do the home flipping story probably next week, 220 00:11:01,760 --> 00:11:05,760 Speaker 1: is that Americans, as unpopular as they are in many cases, 221 00:11:05,760 --> 00:11:10,800 Speaker 1: in general, they are really unpopular in areas like Portugal 222 00:11:11,160 --> 00:11:15,120 Speaker 1: and the Czech Republic because they come in and start 223 00:11:15,160 --> 00:11:19,400 Speaker 1: buying or start renting, and then the prices, the housing 224 00:11:19,440 --> 00:11:25,000 Speaker 1: prices go through the roof and the locals, well, they're 225 00:11:25,000 --> 00:11:27,520 Speaker 1: not very happy about it. So that's the other side 226 00:11:27,520 --> 00:11:31,000 Speaker 1: of the coin, all right, Joel, we think about culture. Yeah, 227 00:11:31,080 --> 00:11:33,880 Speaker 1: that's true unless those of us who have absolutely no 228 00:11:33,920 --> 00:11:36,320 Speaker 1: culture don't care. Okay, Joel. 229 00:11:36,600 --> 00:11:39,959 Speaker 2: This Sunday twelve to two pm, and it's how to Money. 230 00:11:40,000 --> 00:11:41,719 Speaker 2: You have a good one. Take care, Joel. Catch over 231 00:11:41,760 --> 00:11:42,199 Speaker 2: the weekend.