1 00:00:00,200 --> 00:00:02,600 Speaker 1: Welcome to How the Money. I'm Joel and I and 2 00:00:02,720 --> 00:00:06,360 Speaker 1: Matt and today we're discussing open enrollment, creditors in your 3 00:00:06,440 --> 00:00:27,960 Speaker 1: d m s, and falling rents. Yeah, buddy, this is 4 00:00:28,000 --> 00:00:30,880 Speaker 1: our Friday flight episode where we look at the headlines, 5 00:00:31,320 --> 00:00:34,120 Speaker 1: where we specifically look to the non political headlines and 6 00:00:34,159 --> 00:00:36,800 Speaker 1: we figure out how it is that those stories are 7 00:00:36,840 --> 00:00:38,800 Speaker 1: going to affect us and our money, because you know, 8 00:00:38,840 --> 00:00:40,760 Speaker 1: I have to find any non political headlines this week, 9 00:00:40,800 --> 00:00:43,239 Speaker 1: by the way, it was actually we have a lot. 10 00:00:43,280 --> 00:00:45,159 Speaker 1: I was, I was gonna surprised we there there's a 11 00:00:45,159 --> 00:00:47,000 Speaker 1: good amount that that that was going on this week. 12 00:00:47,240 --> 00:00:48,640 Speaker 1: But yeah, I mean that means that there have been 13 00:00:48,680 --> 00:00:51,360 Speaker 1: a ton of political news and they do have an 14 00:00:51,400 --> 00:00:53,720 Speaker 1: impact here and there on our money. But dude, in 15 00:00:53,760 --> 00:00:55,160 Speaker 1: the end, there is so much more that we can 16 00:00:55,200 --> 00:00:58,240 Speaker 1: do ourselves. There are steps that we can take that 17 00:00:58,240 --> 00:01:01,840 Speaker 1: that that have nothing to do with politics and policy. 18 00:01:02,200 --> 00:01:04,399 Speaker 1: We actually have like a lot of great stories that 19 00:01:04,440 --> 00:01:06,480 Speaker 1: are going to actually help people with their personal finances 20 00:01:06,480 --> 00:01:08,840 Speaker 1: this week on today's episode. So, and that's what we 21 00:01:08,880 --> 00:01:11,119 Speaker 1: do every Friday, every Friday. We look at the news 22 00:01:11,120 --> 00:01:13,120 Speaker 1: and figure out how this has to do with your money. 23 00:01:13,240 --> 00:01:14,480 Speaker 1: Before you get to that real quick. I want to 24 00:01:14,560 --> 00:01:18,160 Speaker 1: let you know that I we had a tropical storm 25 00:01:18,160 --> 00:01:20,319 Speaker 1: come through Atlanta. I know it just over a week ago, 26 00:01:20,800 --> 00:01:22,960 Speaker 1: and I had a limb fall down off a tree 27 00:01:23,280 --> 00:01:26,360 Speaker 1: and bust my rear window in the Nissan leaf. You're 28 00:01:26,360 --> 00:01:27,760 Speaker 1: not sharing this with me, You're sharing this with the 29 00:01:27,760 --> 00:01:30,280 Speaker 1: listeners because because I knew that sometimes we pretend that 30 00:01:30,319 --> 00:01:32,640 Speaker 1: we don't know what the other ones about to say. 31 00:01:32,640 --> 00:01:34,840 Speaker 1: But this is definitely an instance where you sent me 32 00:01:34,880 --> 00:01:37,120 Speaker 1: that picture that morning and I was like, oh no, dude, 33 00:01:37,160 --> 00:01:39,560 Speaker 1: I'm so sorry. Who would have thought that a category 34 00:01:39,600 --> 00:01:43,000 Speaker 1: to hurricane coming ashore in like New Orleans or wherever 35 00:01:43,040 --> 00:01:46,240 Speaker 1: it landed was going to equal us losing power for 36 00:01:46,360 --> 00:01:49,960 Speaker 1: I mean basically like multiple days around Halloween and when 37 00:01:50,000 --> 00:01:51,920 Speaker 1: you when you rode around town, the trees that were down, 38 00:01:52,200 --> 00:01:54,320 Speaker 1: it was just insane. Yeah, I don't know what happened, 39 00:01:54,360 --> 00:01:56,200 Speaker 1: but the amount of wind man that that, Yeah, it 40 00:01:56,200 --> 00:01:58,640 Speaker 1: took down trees in particular, like in our neighborhoods where 41 00:01:58,640 --> 00:02:01,200 Speaker 1: we've got these hundred year old oaks and branches down 42 00:02:01,280 --> 00:02:04,600 Speaker 1: and yeah, all that action. But yeah, the funniest thing 43 00:02:04,600 --> 00:02:08,160 Speaker 1: though about your your story, your windshield was the the 44 00:02:08,200 --> 00:02:11,519 Speaker 1: insurance conversation that you had. Yeah, so with your wife. Well, 45 00:02:11,800 --> 00:02:13,440 Speaker 1: like she asked me, why are you are we gonna 46 00:02:13,600 --> 00:02:16,320 Speaker 1: file an insurance claim like most people probably think to do. 47 00:02:16,480 --> 00:02:18,120 Speaker 1: I had multiple neighbors saying the same thing, Oh, I'm 48 00:02:18,160 --> 00:02:20,639 Speaker 1: sorry about your window. Have you talked to insurance yet? Um? 49 00:02:20,760 --> 00:02:23,760 Speaker 1: And my response, you know, trying to be the super nice, 50 00:02:23,840 --> 00:02:27,280 Speaker 1: not to preachy financial guy, like no, I'm not going 51 00:02:27,320 --> 00:02:30,959 Speaker 1: to talk to insurance. Crazy, it's it's literally. I called 52 00:02:31,040 --> 00:02:33,240 Speaker 1: up a mobile glass repair guy. He came out within 53 00:02:33,280 --> 00:02:35,560 Speaker 1: a couple of days, had to order order the new 54 00:02:35,600 --> 00:02:39,680 Speaker 1: windshield and it was four fifteen dollars was the total 55 00:02:39,720 --> 00:02:41,560 Speaker 1: out the door price to get my car back up 56 00:02:41,600 --> 00:02:46,440 Speaker 1: to ye for fifteen that's nothing, not too bad. Yeah. 57 00:02:46,480 --> 00:02:49,760 Speaker 1: So in a deductible, the minimum deductible on a car 58 00:02:49,880 --> 00:02:52,400 Speaker 1: is typically either two fifty or five hundred, or it 59 00:02:52,400 --> 00:02:54,480 Speaker 1: should be that much or should be more like you 60 00:02:54,480 --> 00:02:56,560 Speaker 1: should have your deductible set even higher, which I'd be 61 00:02:56,680 --> 00:02:58,639 Speaker 1: lower because some people have it set lower, right like 62 00:02:58,760 --> 00:03:00,239 Speaker 1: a round a hunter bucks, because they think, well, I 63 00:03:00,240 --> 00:03:01,640 Speaker 1: don't want to have to pay a you know, full 64 00:03:01,639 --> 00:03:04,480 Speaker 1: four bucks. But the main reason that we do encourage 65 00:03:04,480 --> 00:03:06,760 Speaker 1: folks to raise those deductibles and pay out a pocket 66 00:03:07,120 --> 00:03:10,000 Speaker 1: is to avoid making claims with your insurance company in 67 00:03:10,080 --> 00:03:12,680 Speaker 1: order to keep your premiums low, because the more often 68 00:03:12,840 --> 00:03:15,240 Speaker 1: you use it, you have a higher likelihood of seeing 69 00:03:15,240 --> 00:03:18,560 Speaker 1: your premiums go up. Uh, and those increased rates due 70 00:03:18,560 --> 00:03:21,280 Speaker 1: to maybe higher risk that the insurer proceeds for you 71 00:03:21,560 --> 00:03:24,160 Speaker 1: sticks around four years and years years, way more than 72 00:03:24,200 --> 00:03:26,200 Speaker 1: just a few hundred bucks. Now that's right, that's right. 73 00:03:26,200 --> 00:03:28,119 Speaker 1: So I would rather pay it out a pocket one 74 00:03:28,160 --> 00:03:30,880 Speaker 1: because my deductible is higher than the cost of your 75 00:03:30,919 --> 00:03:34,519 Speaker 1: replacing you got the windows. No, I think my inductible 76 00:03:34,520 --> 00:03:36,160 Speaker 1: is at a thousand, So yeah, there you go. That's 77 00:03:36,160 --> 00:03:37,840 Speaker 1: that's how you get that real saving. The highest amount 78 00:03:37,880 --> 00:03:39,360 Speaker 1: that I can said in my deductible is that five 79 00:03:39,400 --> 00:03:42,440 Speaker 1: thousand dollars. Sadly the interurance company won't let you go 80 00:03:42,480 --> 00:03:44,880 Speaker 1: that high. Um, but but yeah, I just want to 81 00:03:44,960 --> 00:03:47,760 Speaker 1: let let everybody know that that those minor things. Don't 82 00:03:47,800 --> 00:03:50,640 Speaker 1: even call your insurance company about something that's just a 83 00:03:50,760 --> 00:03:54,040 Speaker 1: minor accident. Get a quote first to see whether you 84 00:03:54,120 --> 00:03:56,720 Speaker 1: can afford to replace it on your own, and at 85 00:03:56,720 --> 00:04:00,200 Speaker 1: the same time, UH, call your insurer and see well 86 00:04:00,240 --> 00:04:02,480 Speaker 1: if I do up my deductible, how much can I 87 00:04:02,520 --> 00:04:05,360 Speaker 1: save over the next twelve months um and and then 88 00:04:05,360 --> 00:04:07,840 Speaker 1: pocket that savings put it in a savings account so 89 00:04:07,880 --> 00:04:10,880 Speaker 1: you can be prepared for the next possible accident to 90 00:04:10,960 --> 00:04:13,880 Speaker 1: where you're essentially self insured and you can afford to 91 00:04:13,880 --> 00:04:16,640 Speaker 1: take care of that, you know, busted window, um or 92 00:04:17,040 --> 00:04:19,520 Speaker 1: minor scratch on your own. Yeah. Luckily we didn't have 93 00:04:19,560 --> 00:04:22,320 Speaker 1: any big limbs come down and around our house, but 94 00:04:23,040 --> 00:04:25,080 Speaker 1: if they had been, I think we maybe, hopefully we 95 00:04:25,080 --> 00:04:27,680 Speaker 1: would have avoided a branch because when in the fall, 96 00:04:27,720 --> 00:04:29,279 Speaker 1: I tend to park the van out on the street 97 00:04:29,360 --> 00:04:31,560 Speaker 1: because all the leaves fall on top the car. Man, 98 00:04:31,600 --> 00:04:33,120 Speaker 1: it gets so filthy, you know, like all the leaves 99 00:04:33,120 --> 00:04:35,039 Speaker 1: that get down into like the air vents down into 100 00:04:35,040 --> 00:04:37,000 Speaker 1: the little trim and you kind of hit it with 101 00:04:37,040 --> 00:04:39,160 Speaker 1: a blower and then it like shoots it down further 102 00:04:39,200 --> 00:04:43,200 Speaker 1: into it basically a part of the vehicle at that point. 103 00:04:43,560 --> 00:04:45,240 Speaker 1: But yeah, man, sorry that that happened to you. But 104 00:04:45,279 --> 00:04:46,960 Speaker 1: at the same time, I'm glad you're able to get 105 00:04:47,000 --> 00:04:49,640 Speaker 1: that fixed pretty quickly and easily. Yeah, especially as you're 106 00:04:49,680 --> 00:04:51,760 Speaker 1: riding around town. I'm riding around my bike checking things out, 107 00:04:51,800 --> 00:04:56,560 Speaker 1: and just so many trees down, cars damaged severely. Um, 108 00:04:56,600 --> 00:04:59,320 Speaker 1: some people had had homes damaged, of course, and and 109 00:04:59,360 --> 00:05:01,120 Speaker 1: so yeah, I a bad for those people who have 110 00:05:01,200 --> 00:05:02,800 Speaker 1: like a lot of damage. To take care of a 111 00:05:03,080 --> 00:05:04,960 Speaker 1: busted windshield really not that big a deal in the 112 00:05:05,000 --> 00:05:06,600 Speaker 1: scheme of things, Yeah, not that big of a deal. Man. 113 00:05:06,960 --> 00:05:09,119 Speaker 1: Let's let's continue to talk about some of the stories 114 00:05:09,120 --> 00:05:11,599 Speaker 1: that we came across this week, and let's talk about rent. 115 00:05:12,120 --> 00:05:15,760 Speaker 1: The pandemic has had a pretty meaningful impact on where 116 00:05:15,800 --> 00:05:18,320 Speaker 1: people want to live. There have been a lot of 117 00:05:18,360 --> 00:05:21,599 Speaker 1: stories about people fleeing cities like New York and San Francisco. 118 00:05:21,680 --> 00:05:24,360 Speaker 1: Maybe you've seen podcast episodes out there saying like our 119 00:05:24,400 --> 00:05:26,479 Speaker 1: city is dead. I don't know, it's a it's a question, 120 00:05:26,520 --> 00:05:29,120 Speaker 1: it's a debate for us. But rents are falling in 121 00:05:29,120 --> 00:05:32,520 Speaker 1: many US cities right now because of this lack of demand. Uh, 122 00:05:32,640 --> 00:05:34,640 Speaker 1: this makes sense, right, because you know, the things that 123 00:05:34,680 --> 00:05:38,159 Speaker 1: people love about living in these cities has changed dramatically 124 00:05:38,240 --> 00:05:40,160 Speaker 1: due to COVID. I don't know when there's been this 125 00:05:40,240 --> 00:05:42,480 Speaker 1: kind of period of time where there weren't Broadway players 126 00:05:42,480 --> 00:05:44,279 Speaker 1: going on in New York, I don't think ever. And 127 00:05:44,279 --> 00:05:46,800 Speaker 1: we saw in Bloomberg that They noted that the average 128 00:05:46,839 --> 00:05:50,360 Speaker 1: rents in thirty core cities have dropped more than five percent, 129 00:05:51,160 --> 00:05:53,320 Speaker 1: while average rents in the suburbs of those cities have 130 00:05:53,520 --> 00:05:56,520 Speaker 1: inched up half a percentage point. Again, in cities like 131 00:05:56,560 --> 00:05:58,400 Speaker 1: San Francisco and New York, it's even more. I think 132 00:05:58,400 --> 00:06:00,800 Speaker 1: maybe you know it's it's down more like fifteen percent. 133 00:06:01,160 --> 00:06:05,040 Speaker 1: And these rent price dynamics have the big impact on 134 00:06:05,040 --> 00:06:07,560 Speaker 1: on how you should proceed if you are a renter, 135 00:06:07,680 --> 00:06:11,040 Speaker 1: in particular, if you're looking at maybe uh, resigning that lease, 136 00:06:11,120 --> 00:06:12,960 Speaker 1: or maybe you're looking at a new place. Yeah, totally, 137 00:06:13,000 --> 00:06:16,080 Speaker 1: if you're resigning a lease in the near future, chances 138 00:06:16,120 --> 00:06:18,200 Speaker 1: are you should be paying a lot less and then 139 00:06:18,240 --> 00:06:20,200 Speaker 1: you're paying last year, especially if you live in one 140 00:06:20,240 --> 00:06:23,360 Speaker 1: of these core cities. Knowing, for example, that like in Manhattan, 141 00:06:23,839 --> 00:06:27,480 Speaker 1: Brooklyn or Queens that that rents have plummeted um and 142 00:06:27,520 --> 00:06:30,360 Speaker 1: that the new normal for monthly rent is quite a 143 00:06:30,400 --> 00:06:32,479 Speaker 1: bit less than last year. When you sign your lease, 144 00:06:32,640 --> 00:06:35,240 Speaker 1: that gives you an edge when you're negotiating with your 145 00:06:35,279 --> 00:06:38,279 Speaker 1: current landlord or you're looking around shopping around to find 146 00:06:38,480 --> 00:06:42,159 Speaker 1: another place to live. Um Inventory is way up in 147 00:06:42,200 --> 00:06:45,200 Speaker 1: these locations, So just a couple of tips. Since rents 148 00:06:45,240 --> 00:06:48,040 Speaker 1: are down, don't get married to a particular building or 149 00:06:48,080 --> 00:06:51,440 Speaker 1: a unit. Don't get obsessed with one place and decide 150 00:06:51,440 --> 00:06:53,159 Speaker 1: that you have to have it. The more flexible you 151 00:06:53,160 --> 00:06:56,159 Speaker 1: can be about the place you're willing to live, the 152 00:06:56,200 --> 00:06:59,719 Speaker 1: more you can potentially save. And also to be flexible 153 00:06:59,720 --> 00:07:02,160 Speaker 1: about the terms. If a landlord wants, you know, a 154 00:07:02,240 --> 00:07:04,240 Speaker 1: six month or one year or maybe even like a 155 00:07:04,279 --> 00:07:06,880 Speaker 1: two year lease right now, maybe they're worried about the 156 00:07:06,920 --> 00:07:10,160 Speaker 1: potential for m rents to to drop you in further 157 00:07:10,240 --> 00:07:12,840 Speaker 1: in the coming months. Well, the more you can be flexible, 158 00:07:13,120 --> 00:07:15,840 Speaker 1: the higher likelihood that you'll be able to save money 159 00:07:16,120 --> 00:07:18,320 Speaker 1: on your rent every every month. So obviously we're in 160 00:07:18,360 --> 00:07:21,240 Speaker 1: an odd time. But yeah, you use these falling rent 161 00:07:21,280 --> 00:07:24,760 Speaker 1: prices to your advantage as a renter. Yeah, definitely, man. 162 00:07:24,800 --> 00:07:27,080 Speaker 1: And it's also I think worth pointing out to kind 163 00:07:27,080 --> 00:07:28,720 Speaker 1: of approach some of these stories with a level head, 164 00:07:28,720 --> 00:07:30,040 Speaker 1: because I know when I see a story like this, 165 00:07:30,080 --> 00:07:32,240 Speaker 1: it makes me think, oh, there's an opportunity here, like 166 00:07:32,280 --> 00:07:33,840 Speaker 1: now is the time to live in New York City. 167 00:07:34,040 --> 00:07:37,600 Speaker 1: But like the price, uh, you know, rent prices, it's 168 00:07:37,640 --> 00:07:39,560 Speaker 1: it's only one factor, it's only one reason that you 169 00:07:39,600 --> 00:07:42,320 Speaker 1: should consider moving if you are considered moving at all, 170 00:07:42,720 --> 00:07:44,680 Speaker 1: and so it's it's again something you do want to 171 00:07:44,720 --> 00:07:46,760 Speaker 1: keep in mind. But at the same time, that shouldn't 172 00:07:46,760 --> 00:07:49,320 Speaker 1: be your only reason to you know, one maybe uproot 173 00:07:49,400 --> 00:07:52,400 Speaker 1: yourself or even your family to someplace totally new. Let's 174 00:07:52,440 --> 00:07:54,400 Speaker 1: keep moving man. It's uh, it's enrollment season when it 175 00:07:54,440 --> 00:07:57,160 Speaker 1: comes to healthcare, and we want to specifically talk about 176 00:07:57,280 --> 00:08:00,040 Speaker 1: h s A s, which our health savings accounts. And 177 00:08:00,120 --> 00:08:02,880 Speaker 1: we saw recently that only six percent of people that 178 00:08:02,920 --> 00:08:06,280 Speaker 1: contribute to an h s A actually invest inside of it. 179 00:08:06,360 --> 00:08:09,800 Speaker 1: And this is according to the Employee Benefits Research Institute. 180 00:08:10,280 --> 00:08:13,120 Speaker 1: That is not good, man. Yeah, I would much I 181 00:08:13,160 --> 00:08:15,280 Speaker 1: would like to see a lot more people actually investing 182 00:08:15,280 --> 00:08:17,800 Speaker 1: and not just having that money sitting there as cash. 183 00:08:18,160 --> 00:08:20,000 Speaker 1: Because h A s are are pretty great as a 184 00:08:20,080 --> 00:08:25,160 Speaker 1: vehicle for paying for current medical necessities while avoiding tax 185 00:08:25,360 --> 00:08:28,760 Speaker 1: on that money. But hs A s are overwhelmingly excellent 186 00:08:28,840 --> 00:08:32,000 Speaker 1: if you invest that money for decades instead. Back an 187 00:08:32,000 --> 00:08:35,800 Speaker 1: episode one and five, we discussed hs A s in details, 188 00:08:35,800 --> 00:08:37,920 Speaker 1: so check that out if you want all the details. 189 00:08:38,160 --> 00:08:41,440 Speaker 1: But yeah, especially since we are in the open enrollment season. 190 00:08:41,640 --> 00:08:43,160 Speaker 1: You know, if your health is in good condition. If 191 00:08:43,160 --> 00:08:46,560 Speaker 1: you're enrolling in an hs A eligible healthcare plan. Uh. 192 00:08:46,559 --> 00:08:48,880 Speaker 1: And if you want to invest more for the future, 193 00:08:49,280 --> 00:08:51,720 Speaker 1: go the hs A route. And you know, don't just 194 00:08:52,000 --> 00:08:54,920 Speaker 1: actually stick money, stick cash inside that HUSA where it 195 00:08:54,960 --> 00:08:56,920 Speaker 1: sits there as cash. Make sure that you are actually 196 00:08:56,960 --> 00:09:00,160 Speaker 1: investing the money within that account. That's right. And two 197 00:09:00,160 --> 00:09:02,040 Speaker 1: of our favorite companies, by the way for opening an 198 00:09:02,200 --> 00:09:05,720 Speaker 1: hs A with our fidelity and Lively, because of the 199 00:09:05,760 --> 00:09:09,240 Speaker 1: low fees that they offer and the awesome access to 200 00:09:09,480 --> 00:09:11,880 Speaker 1: investment options. So we'll link to both of those in 201 00:09:11,880 --> 00:09:14,720 Speaker 1: our show notes. Last week, we actually talked about changing 202 00:09:14,760 --> 00:09:17,439 Speaker 1: tax brackets Matt, and then a minor increase in the 203 00:09:17,440 --> 00:09:19,199 Speaker 1: amount that people can save in a set bi A 204 00:09:19,280 --> 00:09:21,560 Speaker 1: I think an additional thousand bucks uh coming up the 205 00:09:21,559 --> 00:09:23,720 Speaker 1: next year the new I R S guidelines. Yeah, exactly. 206 00:09:24,000 --> 00:09:26,240 Speaker 1: And you know what, the h s A actually got 207 00:09:26,280 --> 00:09:28,400 Speaker 1: a little bit of a bump up to an extra 208 00:09:28,880 --> 00:09:31,840 Speaker 1: fifty bucks I think it was so Yeah, and maybe 209 00:09:31,840 --> 00:09:34,199 Speaker 1: in a hundred bucks for families. So the new hs 210 00:09:34,280 --> 00:09:36,760 Speaker 1: A contribution limits are thirty six hundred for individuals and 211 00:09:37,760 --> 00:09:41,200 Speaker 1: families and a little extra note two people over fifty five, 212 00:09:41,320 --> 00:09:44,240 Speaker 1: but they can save an extra thousand dollars a year. Yeah, 213 00:09:44,320 --> 00:09:46,200 Speaker 1: so don't neglect the h s A. You know, Matt 214 00:09:46,240 --> 00:09:47,520 Speaker 1: and I, we really do think it's one of the 215 00:09:47,520 --> 00:09:50,520 Speaker 1: best retirement plans out there if you use it correctly, 216 00:09:50,760 --> 00:09:52,800 Speaker 1: because you're never ever taxed on any of that money, 217 00:09:53,000 --> 00:09:55,440 Speaker 1: which is why it's so important to not be with 218 00:09:55,440 --> 00:09:58,200 Speaker 1: the of people who aren't investing inside of it. Be 219 00:09:58,400 --> 00:10:01,200 Speaker 1: like those six percent of people and start investing inside 220 00:10:01,200 --> 00:10:02,960 Speaker 1: of your hs A because it's just one of the 221 00:10:03,000 --> 00:10:06,000 Speaker 1: best ways to long term invest for your future. Yeah, 222 00:10:06,080 --> 00:10:08,280 Speaker 1: that's right. Pay for those medical expenses out of pocket, 223 00:10:08,559 --> 00:10:10,720 Speaker 1: and try not to touch that HSA money. Treat it 224 00:10:10,800 --> 00:10:13,200 Speaker 1: more like a retirement account, all right. So there's an 225 00:10:13,200 --> 00:10:16,680 Speaker 1: awful new debt collector rule jol via the Consumer Financial 226 00:10:16,679 --> 00:10:20,319 Speaker 1: Protection Bureau also known as the CFPB. They just finalized 227 00:10:20,320 --> 00:10:23,320 Speaker 1: a rule this week that will allow debt collectors to 228 00:10:23,400 --> 00:10:27,880 Speaker 1: contact consumers by email, texts, and by social media like Facebook, Twitter, 229 00:10:28,040 --> 00:10:32,120 Speaker 1: and Instagram. Like, seriously, what is up with that? This is? 230 00:10:32,320 --> 00:10:35,360 Speaker 1: This is such bad news. Consumer reports that they say 231 00:10:35,400 --> 00:10:38,559 Speaker 1: that each creditor will be able to have the ability 232 00:10:38,640 --> 00:10:42,000 Speaker 1: to send an unlimited number of texts, emails, in social 233 00:10:42,120 --> 00:10:44,600 Speaker 1: media messages to you. So that's where the sliding into 234 00:10:44,600 --> 00:10:47,080 Speaker 1: the d m S title came from. That we mentioned 235 00:10:47,120 --> 00:10:49,560 Speaker 1: like I'm not already getting enough spam like on social 236 00:10:49,559 --> 00:10:51,840 Speaker 1: media and in my text message in box. It's it's 237 00:10:51,920 --> 00:10:54,360 Speaker 1: terrible considering you know that this is an industry that 238 00:10:54,480 --> 00:10:56,920 Speaker 1: is like already willing to stoop to some really low 239 00:10:57,000 --> 00:10:59,360 Speaker 1: levels in order to get paid. This is bad news 240 00:10:59,400 --> 00:11:02,120 Speaker 1: for those who owe money. Yeah, and Matt, As it 241 00:11:02,160 --> 00:11:04,920 Speaker 1: turns out a lot of Americans do owe money right 242 00:11:05,280 --> 00:11:07,800 Speaker 1: According to the National Consumer Law Center, one in four 243 00:11:07,840 --> 00:11:10,440 Speaker 1: adults have a bill that is in collections at any 244 00:11:10,480 --> 00:11:12,760 Speaker 1: given time, So this is going to have an impact 245 00:11:12,760 --> 00:11:15,760 Speaker 1: on a whole lot of Americans. And the CFPV did 246 00:11:15,800 --> 00:11:18,880 Speaker 1: say that consumers can opt out of these updated electronic 247 00:11:18,920 --> 00:11:22,079 Speaker 1: communication methods, but they haven't explained how that's going to 248 00:11:22,120 --> 00:11:24,800 Speaker 1: be implemented. So you know, hopefully we'll get an update 249 00:11:24,800 --> 00:11:26,760 Speaker 1: on that and be able to relay that to everyone 250 00:11:26,920 --> 00:11:29,439 Speaker 1: how to to avoid at debt collectors in your d 251 00:11:29,600 --> 00:11:32,000 Speaker 1: m S because it sounds terrible. But even though this 252 00:11:32,080 --> 00:11:35,480 Speaker 1: is the Consumer Financial Protection Bureau who issued this new rule, 253 00:11:35,679 --> 00:11:38,319 Speaker 1: it certainly doesn't seem like this is a federal bureau 254 00:11:38,400 --> 00:11:41,640 Speaker 1: that has at least currently the interests of Americans as 255 00:11:41,679 --> 00:11:43,480 Speaker 1: a whole in mind, Matt, back in the day, you 256 00:11:43,520 --> 00:11:45,960 Speaker 1: and I we get to interview Richard Cordray, who helped 257 00:11:46,080 --> 00:11:48,800 Speaker 1: start and found the CFP was the first director. Yeah, 258 00:11:48,880 --> 00:11:51,760 Speaker 1: and and his mission was a good one, and he 259 00:11:51,840 --> 00:11:54,200 Speaker 1: actually did a great job at reining in some of 260 00:11:54,200 --> 00:11:58,120 Speaker 1: the excesses of the financial services industry and protecting Americans. 261 00:11:58,200 --> 00:12:00,840 Speaker 1: And right now the CFPV has lost sight of some 262 00:12:00,880 --> 00:12:04,920 Speaker 1: of that mission and allowing debt collectors to contact you, 263 00:12:04,920 --> 00:12:07,480 Speaker 1: you know, via d m s on Twitter or through 264 00:12:07,480 --> 00:12:10,560 Speaker 1: Facebook Messenger or texting you at all hours of the day. 265 00:12:11,080 --> 00:12:13,080 Speaker 1: That's just bad news for all of us. Yeah, Like, 266 00:12:13,120 --> 00:12:16,240 Speaker 1: I understand the need to update communication methods right like 267 00:12:16,240 --> 00:12:18,600 Speaker 1: because before this, like they could only make those phone calls. 268 00:12:18,679 --> 00:12:21,040 Speaker 1: But at the same time, the fact that they have 269 00:12:21,320 --> 00:12:24,760 Speaker 1: outlined how often, uh, you can be contacted via these 270 00:12:24,920 --> 00:12:28,440 Speaker 1: you know, social media platforms, which is unlimited. The fact 271 00:12:28,440 --> 00:12:30,520 Speaker 1: that they have that outline and they don't have outlined 272 00:12:30,559 --> 00:12:32,280 Speaker 1: how it is that you can opt out of you know, 273 00:12:32,320 --> 00:12:34,840 Speaker 1: some less electronic communication just kind of tells you where 274 00:12:34,840 --> 00:12:37,960 Speaker 1: their priorities are. In my opinion, So the next steps, 275 00:12:38,000 --> 00:12:40,200 Speaker 1: you know, for if you have debt in collections. First 276 00:12:40,200 --> 00:12:42,000 Speaker 1: of all, luckily this rule doesn't go into effect for 277 00:12:42,040 --> 00:12:44,280 Speaker 1: another year, so there's a chance maybe it can be 278 00:12:44,520 --> 00:12:48,080 Speaker 1: changed before then. But regardless, if you're being contacted by 279 00:12:48,120 --> 00:12:50,959 Speaker 1: a creditor today, you know, by the phone, or if 280 00:12:50,960 --> 00:12:53,760 Speaker 1: it's by Instagram next year, you always want to make 281 00:12:53,800 --> 00:12:57,640 Speaker 1: sure that you verify that the debt is actually yours. 282 00:12:57,679 --> 00:13:00,720 Speaker 1: Because of the Fair Debt Collections Practices Act of nineteen 283 00:13:00,800 --> 00:13:03,600 Speaker 1: seventy seven, you have the right to ask for the 284 00:13:03,679 --> 00:13:06,679 Speaker 1: debt collector to provide you with details of how they 285 00:13:06,760 --> 00:13:10,280 Speaker 1: calculated and arrived at the total debt uh that they're 286 00:13:10,400 --> 00:13:12,200 Speaker 1: they're trying to collect from you, you know, as well 287 00:13:12,240 --> 00:13:15,120 Speaker 1: as the name of the original creditor who you owed. 288 00:13:15,559 --> 00:13:18,559 Speaker 1: And so this is an important step since collection agencies 289 00:13:18,880 --> 00:13:21,840 Speaker 1: incompetence you know, or sometimes they just don't care. Uh. 290 00:13:21,960 --> 00:13:24,640 Speaker 1: That means that they might be seeking a debt from 291 00:13:24,640 --> 00:13:27,520 Speaker 1: someone maybe just with a similar name as as yours, 292 00:13:27,960 --> 00:13:30,400 Speaker 1: or maybe they have the wrong person altogether, they're marking 293 00:13:30,440 --> 00:13:32,120 Speaker 1: up the wrong tree. Yeah, And I just want to 294 00:13:32,280 --> 00:13:35,480 Speaker 1: mention too that obviously debt collectors have a job to 295 00:13:35,520 --> 00:13:37,240 Speaker 1: do and there's a lot of people that do ohe 296 00:13:37,440 --> 00:13:39,800 Speaker 1: a legitimate debt and they should pay that debt. It's 297 00:13:39,840 --> 00:13:43,199 Speaker 1: just that this is an industry that sometimes goes to 298 00:13:43,559 --> 00:13:46,400 Speaker 1: excess when it comes to collecting debts, and sometimes they 299 00:13:46,480 --> 00:13:48,959 Speaker 1: violate the law. Yeah, we're not against people paying their debts, 300 00:13:48,960 --> 00:13:52,760 Speaker 1: but we're maybe against the harassment of individuals in particular. Yeah, 301 00:13:52,760 --> 00:13:55,360 Speaker 1: when the laws being broken. Yeah, exactly that. I wanted 302 00:13:55,360 --> 00:13:57,680 Speaker 1: to mention that, and and hopefully we get a little 303 00:13:57,679 --> 00:14:00,400 Speaker 1: more information on how you can protect yourself from a 304 00:14:00,480 --> 00:14:03,400 Speaker 1: social media harassment campaign from from debt collectors if you 305 00:14:03,440 --> 00:14:06,120 Speaker 1: actually do owe a debt, all right, Matt. One other things, 306 00:14:06,120 --> 00:14:08,360 Speaker 1: speaking of folks reaching out to you via text, there 307 00:14:08,400 --> 00:14:12,400 Speaker 1: have been some reports of new stimulus check text message scams. Obviously, 308 00:14:12,640 --> 00:14:14,960 Speaker 1: there isn't a new round of stimulus checks, not yet 309 00:14:15,000 --> 00:14:17,520 Speaker 1: at least, And so if you receive a text or 310 00:14:17,559 --> 00:14:21,000 Speaker 1: email saying otherwise, don't click on that link, it might 311 00:14:21,000 --> 00:14:23,280 Speaker 1: be tempting because you're like, wait, money and coming towards 312 00:14:23,280 --> 00:14:26,240 Speaker 1: coming my way. That sounds great, I can use it, right, 313 00:14:27,040 --> 00:14:29,360 Speaker 1: but it's not legit. And and it just reminds me 314 00:14:29,440 --> 00:14:33,440 Speaker 1: of our recent conversation with Carol Tario recently on cybersecurity. 315 00:14:33,760 --> 00:14:35,520 Speaker 1: Listen back to that one if you haven't already, for 316 00:14:35,600 --> 00:14:37,520 Speaker 1: some great tips to keep you and your money safe, 317 00:14:37,640 --> 00:14:40,280 Speaker 1: because you know, these sorts of scams, this sort of 318 00:14:40,320 --> 00:14:43,920 Speaker 1: this sort of intrusion into your email inbox and into 319 00:14:44,600 --> 00:14:47,280 Speaker 1: where you hang out in social media, it's just becoming 320 00:14:47,400 --> 00:14:49,440 Speaker 1: more of the norm. And she had some great thoughts 321 00:14:49,440 --> 00:14:52,880 Speaker 1: on how you can protect yourself and your money. All Right, Matt, 322 00:14:52,880 --> 00:14:55,480 Speaker 1: we got more to get to, including a new interesting 323 00:14:55,480 --> 00:14:57,360 Speaker 1: survey on who owes the most when it comes to 324 00:14:57,440 --> 00:14:59,560 Speaker 1: student loans. We'll get to that and more right after 325 00:14:59,600 --> 00:15:11,280 Speaker 1: this break. Alright, we are back. We have a whole 326 00:15:11,280 --> 00:15:14,040 Speaker 1: slew of additional stories that we're gonna get to. Joel, 327 00:15:14,120 --> 00:15:16,960 Speaker 1: let's talk about working from home. We want to make 328 00:15:16,960 --> 00:15:20,280 Speaker 1: sure the individuals out there that you're being careful, that 329 00:15:20,320 --> 00:15:22,360 Speaker 1: you're not working too much. If you're one of the 330 00:15:22,400 --> 00:15:24,560 Speaker 1: millions of folks who are now working from home. I 331 00:15:24,640 --> 00:15:27,160 Speaker 1: don't worry about me, Matt, I'm not. I've got no 332 00:15:27,480 --> 00:15:29,400 Speaker 1: worries at all that you're working too much. Talking to 333 00:15:29,520 --> 00:15:31,360 Speaker 1: other people, they could fall prey to working too much, 334 00:15:32,120 --> 00:15:34,640 Speaker 1: but some folks I know have somewhere between two and 335 00:15:34,680 --> 00:15:37,840 Speaker 1: even three hours back in their day. Thanks to not 336 00:15:37,920 --> 00:15:40,800 Speaker 1: having to get ready for work thanks to not having 337 00:15:40,880 --> 00:15:43,280 Speaker 1: to commute. Yeah, and we live in the great city 338 00:15:43,280 --> 00:15:46,760 Speaker 1: of Atlanta. Work commutes are off the wall, crazy real thing. Uh. 339 00:15:46,760 --> 00:15:48,320 Speaker 1: And so for most folks it's you know, it's more 340 00:15:48,360 --> 00:15:51,760 Speaker 1: like probably under an hour of found time. Even that's nice, 341 00:15:52,400 --> 00:15:54,560 Speaker 1: but many workers are are now using a lot of 342 00:15:54,560 --> 00:15:57,400 Speaker 1: that time that is now there's that they've reclaimed, right, 343 00:15:57,760 --> 00:15:59,960 Speaker 1: but they're taking that and they're dedicating it to their 344 00:16:00,160 --> 00:16:03,840 Speaker 1: employer blame. They're working more. Uh. The University of Chicago 345 00:16:04,040 --> 00:16:06,880 Speaker 1: did a study recently to see where people's extra hours 346 00:16:07,120 --> 00:16:09,800 Speaker 1: are going, and it looks like more than one third 347 00:16:09,800 --> 00:16:12,080 Speaker 1: of the hours that people aren't spending on their commute 348 00:16:12,440 --> 00:16:15,320 Speaker 1: or being spent working. And so this is something we 349 00:16:15,360 --> 00:16:17,840 Speaker 1: want to point out because I think in some situations, 350 00:16:17,920 --> 00:16:19,720 Speaker 1: if you want to work more, that's fine, right. I mean, 351 00:16:19,760 --> 00:16:22,120 Speaker 1: in particular, if you build hourly like that means you're 352 00:16:22,120 --> 00:16:24,200 Speaker 1: probably getting paid more, or if you want to maybe 353 00:16:24,200 --> 00:16:26,720 Speaker 1: get ahead at work, working more is you know, that's 354 00:16:26,720 --> 00:16:28,800 Speaker 1: a good thing to do. But it's about being aware 355 00:16:28,840 --> 00:16:30,880 Speaker 1: of the fact that this might be happening to you 356 00:16:30,920 --> 00:16:33,280 Speaker 1: and you may not even realize it, right, Like like 357 00:16:33,280 --> 00:16:35,680 Speaker 1: it used to leave for work at seven. Uh. And 358 00:16:35,720 --> 00:16:38,040 Speaker 1: maybe you didn't start working though until like seven, five 359 00:16:38,160 --> 00:16:40,080 Speaker 1: or eight, but now you're still used to you know, 360 00:16:40,320 --> 00:16:42,440 Speaker 1: leaving the house quote unquote leaving the house at seven, 361 00:16:42,640 --> 00:16:44,480 Speaker 1: and so you start working at seven, and then you 362 00:16:44,520 --> 00:16:46,720 Speaker 1: take that, you multiply that times too. That's a lot 363 00:16:46,760 --> 00:16:50,600 Speaker 1: of time, a lot of additional time that's going towards work. Yeah. Yeah, 364 00:16:50,640 --> 00:16:53,640 Speaker 1: And that same University of Chicago study revealed that childcare 365 00:16:53,680 --> 00:16:55,560 Speaker 1: obviously makes that list as well. For a lot of people, 366 00:16:55,680 --> 00:16:58,160 Speaker 1: they're spending a lot of time with their kids facilitating 367 00:16:58,160 --> 00:17:01,400 Speaker 1: in home learning, or some of the kids maybe haven't 368 00:17:01,400 --> 00:17:03,680 Speaker 1: been able to go back to daycare. And so yeah, 369 00:17:03,680 --> 00:17:05,439 Speaker 1: you're you are spending a lot more time with your 370 00:17:05,480 --> 00:17:07,880 Speaker 1: kids and it's become harder to work. But a lot 371 00:17:07,880 --> 00:17:10,040 Speaker 1: of people are working more um and I think it 372 00:17:10,040 --> 00:17:12,760 Speaker 1: made sense to Matt, particularly in the beginning of the lockdown, 373 00:17:12,760 --> 00:17:15,080 Speaker 1: that people were working more. Right, We're all trying to 374 00:17:15,119 --> 00:17:17,320 Speaker 1: kind of get our barings and figure out how working 375 00:17:17,359 --> 00:17:19,919 Speaker 1: from home would actually work out in our lives. But 376 00:17:20,000 --> 00:17:21,680 Speaker 1: most of us at this point have developed a bit 377 00:17:21,680 --> 00:17:23,440 Speaker 1: of a rhythm. So it's important to make sure that 378 00:17:23,480 --> 00:17:26,280 Speaker 1: you create some barriers between you and your work so 379 00:17:26,320 --> 00:17:29,480 Speaker 1: that you're not overworking yourself just because your laptop is 380 00:17:29,560 --> 00:17:31,400 Speaker 1: right there in your house. And I think that's what 381 00:17:31,440 --> 00:17:34,840 Speaker 1: people can easily and have easily fallen prey to and 382 00:17:35,000 --> 00:17:37,399 Speaker 1: Matt in episode one eighty two, we talked about you know, 383 00:17:37,440 --> 00:17:40,200 Speaker 1: some tips to help people work from home effectively, and 384 00:17:40,440 --> 00:17:43,320 Speaker 1: a couple of things we mentioned was having a dedicated workspace, 385 00:17:43,480 --> 00:17:46,720 Speaker 1: which means not working from your bed right um, and 386 00:17:46,800 --> 00:17:49,240 Speaker 1: and not working from the kitchen table and all likelihood. 387 00:17:49,240 --> 00:17:52,240 Speaker 1: Either having a called out space in your house where 388 00:17:52,280 --> 00:17:55,240 Speaker 1: you get work done and then having hard work hours. 389 00:17:55,320 --> 00:17:56,960 Speaker 1: Making sure you know when you're on and off the 390 00:17:56,960 --> 00:17:59,439 Speaker 1: clock and not deviating from that can really help you 391 00:17:59,480 --> 00:18:03,160 Speaker 1: to create oppera barriers and avoid overworking just because your 392 00:18:03,160 --> 00:18:06,280 Speaker 1: work is essentially in your house. Now, having a dedicated 393 00:18:06,359 --> 00:18:08,440 Speaker 1: time to work as well as a dedicated space to 394 00:18:08,480 --> 00:18:10,879 Speaker 1: work is ideal. Yeah, and take a couple of breaks 395 00:18:10,920 --> 00:18:12,400 Speaker 1: too during the day. I think when people work from 396 00:18:12,400 --> 00:18:16,280 Speaker 1: home sometimes they forget the rhythms of a normal work day, 397 00:18:16,440 --> 00:18:18,280 Speaker 1: um when they were in the office and there were 398 00:18:18,359 --> 00:18:20,600 Speaker 1: break times built in there too, right, A walk down 399 00:18:20,640 --> 00:18:23,000 Speaker 1: the hall, uh, a visit to see a coworker and 400 00:18:23,040 --> 00:18:26,040 Speaker 1: so take that break, step outside, whatever it takes to 401 00:18:26,080 --> 00:18:28,560 Speaker 1: get yourself clear headed and refreshed to kind of get 402 00:18:28,600 --> 00:18:30,200 Speaker 1: back at it. You miss that walk down to the 403 00:18:30,200 --> 00:18:32,160 Speaker 1: break room where you're reaching there and grab grab yourself 404 00:18:32,160 --> 00:18:35,960 Speaker 1: a Coca Cola every afternoon always. So we've talked about 405 00:18:36,040 --> 00:18:38,960 Speaker 1: authorized user status before. Write with credit cards, how this 406 00:18:39,000 --> 00:18:40,399 Speaker 1: can be a good way to to help lift your 407 00:18:40,400 --> 00:18:44,040 Speaker 1: credit score. So, for example, maybe handled credit cards poorly 408 00:18:44,080 --> 00:18:46,480 Speaker 1: in college, but now you're on the right track. Uh. 409 00:18:46,480 --> 00:18:48,320 Speaker 1: In a family member add you to their card in 410 00:18:48,440 --> 00:18:51,400 Speaker 1: order to extend their good credit to you. Well, we've 411 00:18:51,400 --> 00:18:53,720 Speaker 1: never talked about this before, but you can add your 412 00:18:54,000 --> 00:18:57,280 Speaker 1: very young children as authorized users in order to give them, 413 00:18:57,320 --> 00:18:59,560 Speaker 1: you know, a bit of a jump starts on establishing 414 00:18:59,600 --> 00:19:02,520 Speaker 1: great adit and by very young, I mean even babies. 415 00:19:03,200 --> 00:19:05,560 Speaker 1: I just added our one year old to to one 416 00:19:05,560 --> 00:19:08,000 Speaker 1: of my credit cards. Actually, like I added all four 417 00:19:08,040 --> 00:19:10,080 Speaker 1: of the kids to that card in order to to 418 00:19:10,119 --> 00:19:12,000 Speaker 1: kind of get them set up for you know, a 419 00:19:12,119 --> 00:19:15,119 Speaker 1: nice long history of of good credit. Yeah, and I 420 00:19:15,119 --> 00:19:18,400 Speaker 1: think if you handle credit incredibly well, you can set 421 00:19:18,440 --> 00:19:20,600 Speaker 1: your kids up for you know, at least a good 422 00:19:20,680 --> 00:19:23,919 Speaker 1: start in the credit realm. And that can be a 423 00:19:23,920 --> 00:19:26,160 Speaker 1: good way to go. And obviously you're not planning on 424 00:19:26,359 --> 00:19:29,080 Speaker 1: your kids, especially your one year old, using that card 425 00:19:29,200 --> 00:19:32,200 Speaker 1: every time soon, right, But because they'll have that solid 426 00:19:32,240 --> 00:19:36,240 Speaker 1: and long history of on time payments and low utilization 427 00:19:36,640 --> 00:19:38,159 Speaker 1: when they are old enough to get a card in 428 00:19:38,160 --> 00:19:39,679 Speaker 1: their own name as an adult, that means they'll be 429 00:19:39,680 --> 00:19:41,960 Speaker 1: in a super solid position. And speaking of being old 430 00:19:42,040 --> 00:19:44,520 Speaker 1: enough to Matt, different credit card issuers have different age 431 00:19:44,520 --> 00:19:47,000 Speaker 1: requirements in order to be added as an authorized user. 432 00:19:47,240 --> 00:19:49,360 Speaker 1: Some cards like the Blue Cash Preferred, which you've talked 433 00:19:49,359 --> 00:19:51,720 Speaker 1: about a bunch, they've got a minimum age of thirteen, 434 00:19:51,760 --> 00:19:54,119 Speaker 1: so you're one year old not going to qualify, but 435 00:19:54,119 --> 00:19:56,240 Speaker 1: but obviously used a different card. Which one did you 436 00:19:56,320 --> 00:19:58,600 Speaker 1: use so that your kids, who are all under thirteen 437 00:19:58,640 --> 00:20:01,119 Speaker 1: were able to qualify? The Yes, so my Capital one 438 00:20:01,200 --> 00:20:03,399 Speaker 1: Quick Sliver card, which is a card to use for 439 00:20:03,440 --> 00:20:06,600 Speaker 1: all of my online purchases that happened on a recurring basis. 440 00:20:06,600 --> 00:20:08,879 Speaker 1: So I've got one specific card that used for subscription 441 00:20:08,920 --> 00:20:11,760 Speaker 1: online subscriptions basically, and that's all I use that card for. 442 00:20:12,040 --> 00:20:14,879 Speaker 1: So they don't have any age limits, so you're good. 443 00:20:14,960 --> 00:20:18,480 Speaker 1: Literally added a one through a seven year old got 444 00:20:18,520 --> 00:20:21,040 Speaker 1: them added and those cards are on their way. But obviously, yeah, 445 00:20:21,080 --> 00:20:23,320 Speaker 1: like those aren't cards that they're going to use, but 446 00:20:23,359 --> 00:20:25,520 Speaker 1: they're gonna be able to kind of piggyback off of 447 00:20:25,600 --> 00:20:28,560 Speaker 1: my proper usage of credit in order to get them 448 00:20:28,560 --> 00:20:30,399 Speaker 1: set up. Can you imagine the thank you that you're 449 00:20:30,440 --> 00:20:32,560 Speaker 1: going to receive in twenty years when they find out 450 00:20:32,600 --> 00:20:34,919 Speaker 1: how you've set them up? Honestly, just how much you 451 00:20:34,920 --> 00:20:36,600 Speaker 1: and I talk about money, They're just they're going to 452 00:20:36,720 --> 00:20:41,000 Speaker 1: roll their eye. Of course you did that, don't currently malone, 453 00:20:41,640 --> 00:20:43,280 Speaker 1: But yeah, I mean if you have younger kids, that's 454 00:20:43,280 --> 00:20:45,199 Speaker 1: definitely something to consider, you know, if if you are 455 00:20:45,200 --> 00:20:47,159 Speaker 1: going to handle your credit, well, that's something that you 456 00:20:47,160 --> 00:20:50,840 Speaker 1: can extend to them as early as one year old. 457 00:20:50,960 --> 00:20:54,199 Speaker 1: Yeah for sure. Alright, let's talk about planes too, ye, 458 00:20:54,320 --> 00:20:56,199 Speaker 1: speaking of kids, let's keep the ball rolling, Let's do it. 459 00:20:56,520 --> 00:20:59,879 Speaker 1: And yeah, planes are a great way to invest for 460 00:21:00,000 --> 00:21:03,280 Speaker 1: were your child's future, for their schooling in a particular, 461 00:21:03,359 --> 00:21:05,679 Speaker 1: five twenty nine plans are typically used for paying for 462 00:21:05,720 --> 00:21:09,960 Speaker 1: college expenses, and morning Star recently made changes to their 463 00:21:09,960 --> 00:21:13,280 Speaker 1: five nine plan ratings. Morning Stars this fantastic site that 464 00:21:13,280 --> 00:21:17,000 Speaker 1: provides awesome financial reporting and content. They also rape funds 465 00:21:17,040 --> 00:21:20,240 Speaker 1: that you can invest in. Also, they rate five nine 466 00:21:20,280 --> 00:21:23,840 Speaker 1: plans from each state, and some are better than others. Right. Uh, 467 00:21:23,880 --> 00:21:27,400 Speaker 1: the disparity in fees and investment choices vary from state 468 00:21:27,400 --> 00:21:29,919 Speaker 1: to state, and it can be a meaningful difference between 469 00:21:29,960 --> 00:21:33,080 Speaker 1: each one. And for this year, Morning Star has rated Utah, Illinois, 470 00:21:33,080 --> 00:21:36,480 Speaker 1: and Michigan as having the top plans out there. Will 471 00:21:36,520 --> 00:21:38,880 Speaker 1: link directly to those top rated plans in our show 472 00:21:38,920 --> 00:21:41,520 Speaker 1: notes along with the full morning Star ratings. But we 473 00:21:41,560 --> 00:21:44,440 Speaker 1: wanted you to know that because where you investor your kids, 474 00:21:44,520 --> 00:21:47,919 Speaker 1: which states plan that you decide to partake in when 475 00:21:47,960 --> 00:21:50,680 Speaker 1: you're saving for their college future, it matters. It's gonna 476 00:21:50,720 --> 00:21:53,280 Speaker 1: have a big difference in the ultimate outcome of how 477 00:21:53,359 --> 00:21:55,280 Speaker 1: much you're able to put away from them. Yeah, there's 478 00:21:55,440 --> 00:21:57,080 Speaker 1: the states that do really well are or must be 479 00:21:57,119 --> 00:22:00,440 Speaker 1: states that Sufi and Steven's likes. Not you, oh, I guess, 480 00:22:00,440 --> 00:22:03,160 Speaker 1: but Illinois, Michigan. If you created a Utah, I would 481 00:22:03,200 --> 00:22:05,399 Speaker 1: listen to it. Yeah, And most people interested in signing 482 00:22:05,480 --> 00:22:08,240 Speaker 1: up for a five plan don't know a couple of 483 00:22:08,280 --> 00:22:10,800 Speaker 1: important things right. First of all, you don't have to 484 00:22:10,840 --> 00:22:13,720 Speaker 1: sign up with your state's plan with the state you 485 00:22:13,760 --> 00:22:16,000 Speaker 1: know where you live. If the state you know you 486 00:22:16,080 --> 00:22:19,000 Speaker 1: live and has a poorly rated plan, you can invest 487 00:22:19,000 --> 00:22:21,800 Speaker 1: through one of the top rated ones instead. Also, how 488 00:22:21,840 --> 00:22:24,280 Speaker 1: does that you go about signing up for one of 489 00:22:24,320 --> 00:22:27,600 Speaker 1: these five twenty nine plans? That matters as well. Right, 490 00:22:27,680 --> 00:22:29,600 Speaker 1: you could open that account up, you know, through your 491 00:22:29,600 --> 00:22:32,159 Speaker 1: local bank, uh, but chances are that's gonna be a 492 00:22:32,200 --> 00:22:34,639 Speaker 1: bad move because they typically have a lot of fees 493 00:22:34,680 --> 00:22:37,639 Speaker 1: associated with those accounts. Instead, we would recommend for you 494 00:22:37,680 --> 00:22:42,200 Speaker 1: to open up your plan online directly through the state's link, 495 00:22:42,680 --> 00:22:44,159 Speaker 1: and that's gonna be the best way that you can 496 00:22:44,160 --> 00:22:47,040 Speaker 1: make sure to avoid any of those additional fees that 497 00:22:47,080 --> 00:22:49,560 Speaker 1: could easily be avoided. Also, too, you know, if your 498 00:22:49,560 --> 00:22:52,200 Speaker 1: state has a state tax benefit, there's a good chance 499 00:22:52,440 --> 00:22:55,040 Speaker 1: that you'll want to invest in your states plan maybe 500 00:22:55,119 --> 00:22:57,760 Speaker 1: instead of the plans that you know ranked the highest. So, 501 00:22:57,800 --> 00:23:00,560 Speaker 1: for example, our Georgia plan is rated new troll, which 502 00:23:00,680 --> 00:23:04,480 Speaker 1: isn't super great. It's like gold, silver, and bronze, and 503 00:23:04,520 --> 00:23:07,479 Speaker 1: then it's just kind of like the category. It's not 504 00:23:07,600 --> 00:23:09,800 Speaker 1: negative at least, but it's just kind of neutral. But 505 00:23:10,440 --> 00:23:12,719 Speaker 1: we've got some state tax benefits that they offer, and 506 00:23:12,760 --> 00:23:15,320 Speaker 1: so that will more than make up for some of 507 00:23:15,320 --> 00:23:18,760 Speaker 1: its minor inadequacies, you know, like we may not have 508 00:23:18,840 --> 00:23:21,920 Speaker 1: the best investing options available through the Georgia Plan, but 509 00:23:21,960 --> 00:23:24,560 Speaker 1: those additional state tax benefits are are going to easily 510 00:23:24,600 --> 00:23:26,760 Speaker 1: be able to make up for that, you know, their shortcomings. Yeah, 511 00:23:26,760 --> 00:23:29,200 Speaker 1: for sure. So again we'll link to all the stuff 512 00:23:29,200 --> 00:23:31,640 Speaker 1: in the show notes, the morning Star ratings, and it's 513 00:23:31,680 --> 00:23:34,800 Speaker 1: just helpful if you're thinking about starting to to save 514 00:23:34,880 --> 00:23:38,440 Speaker 1: and invest for your kids future. Um, a five point 515 00:23:38,480 --> 00:23:39,680 Speaker 1: nine plane is a great way to do this. You 516 00:23:39,720 --> 00:23:41,359 Speaker 1: just want to make sure you're doing it the right way, 517 00:23:41,560 --> 00:23:43,840 Speaker 1: and I think that God can be helpful. All right, Matt, 518 00:23:43,880 --> 00:23:45,880 Speaker 1: let's talk about student loans on the note of paying 519 00:23:45,880 --> 00:23:49,439 Speaker 1: for college. Who owes the most in student loans and 520 00:23:49,640 --> 00:23:54,600 Speaker 1: doctors probably not? Yeah, that's a good point. They do, 521 00:23:55,560 --> 00:23:57,600 Speaker 1: and they probably are not laughing while we're laughing. Is 522 00:23:57,640 --> 00:23:59,960 Speaker 1: that what you're asking or are you specifically talking about 523 00:24:00,040 --> 00:24:03,320 Speaker 1: like demographic demographics? So so Fidelity actually just came out 524 00:24:03,359 --> 00:24:06,399 Speaker 1: with with the new survey. You might be surprised, but 525 00:24:06,480 --> 00:24:09,040 Speaker 1: it's baby boomers that actually owe the most when it 526 00:24:09,040 --> 00:24:11,439 Speaker 1: comes to student loans. So this new report gives that 527 00:24:11,560 --> 00:24:14,960 Speaker 1: insight and this is primarily due to parent plus loans 528 00:24:15,200 --> 00:24:17,800 Speaker 1: and parents of college age kids taking on a large 529 00:24:17,880 --> 00:24:21,200 Speaker 1: chunk of their kids debt burden for them. This is 530 00:24:21,240 --> 00:24:23,880 Speaker 1: bad news, I think, Matt, for so many reasons. One, 531 00:24:24,119 --> 00:24:26,600 Speaker 1: many boomers can't afford the debt that they're taking on, 532 00:24:27,080 --> 00:24:30,200 Speaker 1: especially as they get nearer to retirement. It's like this albatross, 533 00:24:30,200 --> 00:24:32,240 Speaker 1: so they can't get out from under as their nearing 534 00:24:32,240 --> 00:24:35,840 Speaker 1: their retirement years. And the average interest rate on these 535 00:24:35,840 --> 00:24:39,440 Speaker 1: parent plus loans is higher too. So parents, whatever you do, 536 00:24:39,680 --> 00:24:42,200 Speaker 1: if you've got kids going to college or nearing college, 537 00:24:42,560 --> 00:24:46,400 Speaker 1: we suggest avoiding parent plus loans at all costs. They're bad, 538 00:24:46,760 --> 00:24:49,240 Speaker 1: bad news, and there are other ways around it, in 539 00:24:49,280 --> 00:24:52,680 Speaker 1: particular trying to help your kid find a cheaper place 540 00:24:52,720 --> 00:24:54,399 Speaker 1: to go to school. If parent plus loans have to 541 00:24:54,440 --> 00:24:56,720 Speaker 1: be part of the equation, it's just not worth it. Yeah, 542 00:24:56,720 --> 00:24:59,000 Speaker 1: there are other alternatives as well, making sure that you 543 00:24:59,359 --> 00:25:02,760 Speaker 1: apply for as many scholarships as possible, maybe scoring some grants, 544 00:25:02,920 --> 00:25:05,200 Speaker 1: uh and even working through college or or all things 545 00:25:05,200 --> 00:25:09,120 Speaker 1: that we would recommend over just signing on the dotted line, 546 00:25:09,160 --> 00:25:11,760 Speaker 1: you know, and and saddling yourself you know your kids, 547 00:25:11,760 --> 00:25:14,040 Speaker 1: but then also you're you know you as parents with 548 00:25:14,440 --> 00:25:18,159 Speaker 1: sometimes some overwhelming debts and student loan debt. You know, like, 549 00:25:18,200 --> 00:25:20,359 Speaker 1: this is obviously an issue in our country. Estimates are 550 00:25:20,400 --> 00:25:23,480 Speaker 1: are that work nearing one point seven trillion dollars in 551 00:25:23,600 --> 00:25:27,200 Speaker 1: overall debt for higher education, and everyone should be way 552 00:25:27,240 --> 00:25:30,120 Speaker 1: more careful before they take out this kind of debt. Enjoy. 553 00:25:30,240 --> 00:25:32,800 Speaker 1: Actually on Monday, we're publishing an episode that is going 554 00:25:32,840 --> 00:25:36,800 Speaker 1: to be making an argument for avoiding higher education altogether 555 00:25:37,200 --> 00:25:40,680 Speaker 1: and how instead a lot of folks should consider maybe 556 00:25:40,720 --> 00:25:43,800 Speaker 1: the skilled trades. Uh, for a lot of individuals, I 557 00:25:43,800 --> 00:25:46,760 Speaker 1: think college has kind of become the default option, but 558 00:25:46,800 --> 00:25:50,600 Speaker 1: instead there are some legitimate alternate routes that people can take. 559 00:25:50,760 --> 00:25:52,880 Speaker 1: I'm actually really excited about the interview that we've got 560 00:25:52,920 --> 00:25:55,040 Speaker 1: slotted for Monday, So yeah, look forward to that. Yeah. 561 00:25:55,040 --> 00:25:57,359 Speaker 1: I read the book. It's called Blue Collar Cash by 562 00:25:57,440 --> 00:26:00,920 Speaker 1: Ken Rusk. Awesome book, so much good formation, and look 563 00:26:00,960 --> 00:26:02,600 Speaker 1: forward to having that conversation with him because I do 564 00:26:02,600 --> 00:26:04,919 Speaker 1: think it's something that people should think about more, especially 565 00:26:04,960 --> 00:26:07,320 Speaker 1: when you look at the overall student loan debt burden 566 00:26:07,359 --> 00:26:09,200 Speaker 1: of Americans as a whole, and then as you look 567 00:26:09,240 --> 00:26:12,280 Speaker 1: to see that it's impacting just the baby boomer generation, 568 00:26:12,320 --> 00:26:15,160 Speaker 1: the most people who are who just can least afford 569 00:26:15,280 --> 00:26:18,280 Speaker 1: to bear these student loans. Taking on that kind of 570 00:26:18,280 --> 00:26:21,440 Speaker 1: debt as you're looking to wind down your working career 571 00:26:21,560 --> 00:26:23,520 Speaker 1: is just is a bad recipe. Um. Yeah, and I 572 00:26:23,520 --> 00:26:26,600 Speaker 1: think that conversation is gonna be super enlightening. All right, Matt, Well, 573 00:26:26,640 --> 00:26:29,080 Speaker 1: that's gonna be it for this episode. Then we'll have 574 00:26:29,119 --> 00:26:31,359 Speaker 1: a link to the articles and the resources we mentioned 575 00:26:31,600 --> 00:26:33,400 Speaker 1: in our show notes up on our website at how 576 00:26:33,480 --> 00:26:35,560 Speaker 1: to money dot com. Yeah, and if you're listening and 577 00:26:35,600 --> 00:26:38,840 Speaker 1: you found this episode, if you found this show overall 578 00:26:38,960 --> 00:26:41,000 Speaker 1: very helpful to you and your money, we would be 579 00:26:41,040 --> 00:26:44,600 Speaker 1: incredibly thankful if you head over to Apple podcasts uh 580 00:26:44,640 --> 00:26:46,880 Speaker 1: and if you left us a solid review over there, 581 00:26:46,920 --> 00:26:48,880 Speaker 1: and if you've already done that, you know what, let 582 00:26:48,880 --> 00:26:51,040 Speaker 1: a friend know about our show, help us to get 583 00:26:51,040 --> 00:26:53,480 Speaker 1: the word out and help others to start making smarter 584 00:26:53,520 --> 00:26:56,080 Speaker 1: moves with their money. So Joel, that's gonna be it, buddy. 585 00:26:56,119 --> 00:27:07,399 Speaker 1: Until next time, Best friends Out, Best Friends Out. M