1 00:00:00,080 --> 00:00:03,400 Speaker 1: Welcome to Haad of Money. I'm Joel and I am Matt. 2 00:00:03,560 --> 00:00:13,200 Speaker 2: Today we're answering your listener questions. 3 00:00:24,800 --> 00:00:28,760 Speaker 1: Happy Monday, everybody. We hope you had a fantastic weekend. 4 00:00:28,800 --> 00:00:31,400 Speaker 1: In Joel, we indeed have listener questions to get to. 5 00:00:31,680 --> 00:00:34,040 Speaker 1: We've got a listener who's asking about the two fund 6 00:00:34,040 --> 00:00:37,320 Speaker 1: approach to investing, whether or not specifically that that is 7 00:00:37,320 --> 00:00:39,279 Speaker 1: something that we're down with, so we're going to get 8 00:00:39,320 --> 00:00:42,280 Speaker 1: to that. Another listener is asking about five twenty nine plans, 9 00:00:42,680 --> 00:00:46,960 Speaker 1: specifically to pay for current educational expenses, which is something Joel, 10 00:00:47,000 --> 00:00:49,839 Speaker 1: that you've You've done something very similar to this, albeit 11 00:00:50,360 --> 00:00:52,239 Speaker 1: with a different twist. We'll cover this. One definitely has 12 00:00:52,280 --> 00:00:54,800 Speaker 1: a twist, so we'll explain why it's a little bit 13 00:00:54,800 --> 00:00:57,720 Speaker 1: different than your situation. And then we've got a like 14 00:00:57,720 --> 00:01:01,800 Speaker 1: a landlord versus renter question. There's some fees and this 15 00:01:01,920 --> 00:01:04,039 Speaker 1: listener is trying to figure out whether or not they're 16 00:01:04,040 --> 00:01:07,559 Speaker 1: warranted or not. We'll give our thoughts. Do we side 17 00:01:07,560 --> 00:01:09,240 Speaker 1: with the with the landlord or do we side with 18 00:01:09,280 --> 00:01:11,600 Speaker 1: a renter. It's almost like a frugal versus cheap. 19 00:01:11,520 --> 00:01:12,920 Speaker 2: The way you made it sound made me think of 20 00:01:13,120 --> 00:01:15,560 Speaker 2: umemous celebrity death match back in the day. 21 00:01:15,560 --> 00:01:16,120 Speaker 1: The claymation. 22 00:01:16,240 --> 00:01:19,240 Speaker 2: Yeah, that's what I was thinking, literally picturing my mind 23 00:01:19,240 --> 00:01:22,040 Speaker 2: a landlord and a renter with boxing gloves on going 24 00:01:22,080 --> 00:01:22,319 Speaker 2: at it. 25 00:01:22,560 --> 00:01:25,200 Speaker 1: I don't think it's gonna innovated in the Was it 26 00:01:25,280 --> 00:01:28,119 Speaker 1: California prunes or grapes or something? You remember that? Yeah? 27 00:01:28,200 --> 00:01:31,600 Speaker 1: What was Were they prunes? Now they were raisins? Oh raisins? Wait? 28 00:01:31,640 --> 00:01:35,000 Speaker 1: What did I say? Oh? Yeah, dried out grapes are raisins. 29 00:01:37,000 --> 00:01:38,959 Speaker 1: What was the whole thing with what was that? Was 30 00:01:38,959 --> 00:01:41,560 Speaker 1: that a cartoon or the California Raisins? Was that a 31 00:01:41,560 --> 00:01:44,920 Speaker 1: branding effort? Like? Man, good for them? It was a 32 00:01:44,959 --> 00:01:48,400 Speaker 1: cultural thing, it really was. I think stands a Raisins 33 00:01:48,440 --> 00:01:50,280 Speaker 1: TA shirt when I was a kid. Really yeah, man, 34 00:01:50,400 --> 00:01:53,200 Speaker 1: the nineties, that's right. All right. 35 00:01:53,280 --> 00:01:56,200 Speaker 2: Before we get to all those questions, Matt, at the 36 00:01:56,280 --> 00:01:58,480 Speaker 2: risk of sounding too broie, we need to talk about 37 00:01:58,480 --> 00:01:59,680 Speaker 2: your new home gym setup. 38 00:01:59,720 --> 00:02:01,400 Speaker 1: I guess is it time to share share with folks 39 00:02:01,440 --> 00:02:03,040 Speaker 1: the fact that I've fallen off the wagon when it 40 00:02:03,080 --> 00:02:04,240 Speaker 1: comes to CrossFit. 41 00:02:04,360 --> 00:02:07,320 Speaker 2: Well, so you get you weren't you were okay spending 42 00:02:07,320 --> 00:02:09,640 Speaker 2: the money because you were taking advantage of it, and 43 00:02:09,639 --> 00:02:10,880 Speaker 2: it was making a difference in your life. 44 00:02:10,880 --> 00:02:13,400 Speaker 1: I have. Everybody knows across it's really expensive. It's an 45 00:02:13,440 --> 00:02:15,120 Speaker 1: expensive thing. And I have not fallen off the wagon, 46 00:02:15,120 --> 00:02:16,799 Speaker 1: by the way when it comes to working out. But yes, 47 00:02:17,160 --> 00:02:20,120 Speaker 1: especially not only is CrossFit expensive. So it's not like 48 00:02:20,200 --> 00:02:22,400 Speaker 1: going to a regular gym like in La Fitness, where 49 00:02:22,400 --> 00:02:24,320 Speaker 1: they just have the equipment. It's like fifteen twenty bucks 50 00:02:24,360 --> 00:02:26,480 Speaker 1: a month first at some of those class right. Yeah, 51 00:02:26,520 --> 00:02:28,320 Speaker 1: it's a lot more expensive because of the fact that 52 00:02:28,320 --> 00:02:30,600 Speaker 1: it's based around classes and so there are coaches there. 53 00:02:30,639 --> 00:02:33,040 Speaker 1: There's always somebody there. It's almost like a full time 54 00:02:33,320 --> 00:02:36,000 Speaker 1: well you know, folks swapping it out, but there's always 55 00:02:36,000 --> 00:02:38,720 Speaker 1: somebody there leading the classes. The coaches are what make 56 00:02:38,760 --> 00:02:40,760 Speaker 1: it different than just going out and working out on 57 00:02:40,760 --> 00:02:43,120 Speaker 1: your own. Yeah, you're getting that kind of individual attention, 58 00:02:43,760 --> 00:02:46,360 Speaker 1: but with in a group setting. And yeah, so all 59 00:02:46,440 --> 00:02:48,920 Speaker 1: that being said, it is very expensive. And so what 60 00:02:48,919 --> 00:02:50,919 Speaker 1: I'm going to start doing is I'm gonna start pocketing 61 00:02:50,960 --> 00:02:54,040 Speaker 1: that money and I'm gonna build out my own home gym. 62 00:02:54,120 --> 00:02:55,840 Speaker 1: It would be really funny if you brought your own 63 00:02:55,840 --> 00:02:57,840 Speaker 1: weights and you were looking in the window of the 64 00:02:57,840 --> 00:02:59,640 Speaker 1: CrossFit and you were doing it in there parking lot 65 00:02:59,720 --> 00:03:03,880 Speaker 1: or something a discount if I byow. So I did 66 00:03:03,880 --> 00:03:05,760 Speaker 1: the math, and truly it would take me about a 67 00:03:05,880 --> 00:03:07,400 Speaker 1: It's gonna take me about a year, I think, to 68 00:03:07,480 --> 00:03:10,960 Speaker 1: recoup the costs, recoup the cash outlay where I had 69 00:03:10,960 --> 00:03:13,440 Speaker 1: to stop paying for membership, which is what I'm doing now. 70 00:03:13,760 --> 00:03:14,400 Speaker 1: I hit pause. 71 00:03:14,760 --> 00:03:16,840 Speaker 2: So what do you look into Facebook Marketplace to fill 72 00:03:16,840 --> 00:03:19,160 Speaker 2: out your home gym? I have a good space for it. 73 00:03:19,200 --> 00:03:22,520 Speaker 1: So yeah, our garage it's we have surprisingly a high 74 00:03:22,560 --> 00:03:24,960 Speaker 1: ceilings in our garage, just the way our home is oriented, 75 00:03:25,000 --> 00:03:27,440 Speaker 1: so you can get those big weights up above your head. 76 00:03:27,440 --> 00:03:28,679 Speaker 1: You don't have to hear about hitting the ceiling that 77 00:03:28,760 --> 00:03:30,040 Speaker 1: kind of stuff. You can do pull ups and stuff 78 00:03:30,080 --> 00:03:32,480 Speaker 1: like that. No, I've been looking for the past three 79 00:03:32,520 --> 00:03:35,400 Speaker 1: weeks now on in more than three weeks on Facebook Marketplace, 80 00:03:35,440 --> 00:03:37,480 Speaker 1: and you might be able to find a random pair 81 00:03:37,520 --> 00:03:39,760 Speaker 1: of dumbbells, but some of the stuff I'm looking for 82 00:03:39,840 --> 00:03:42,600 Speaker 1: it's a little more specialized. But that being said, I'm 83 00:03:42,640 --> 00:03:44,720 Speaker 1: still I think I'm going to be willing to spend 84 00:03:44,800 --> 00:03:46,720 Speaker 1: and for acount the money because of the fact. So 85 00:03:46,800 --> 00:03:48,360 Speaker 1: not only is it just a year that's just for 86 00:03:48,480 --> 00:03:50,960 Speaker 1: me right, like if it just replaces what I were 87 00:03:50,960 --> 00:03:53,560 Speaker 1: to pay every single month for going to the gym, 88 00:03:53,600 --> 00:03:55,480 Speaker 1: but Kate as well, So if I once I start 89 00:03:55,480 --> 00:03:57,840 Speaker 1: factoring in the fact that she is, I mean, we're 90 00:03:57,840 --> 00:04:00,720 Speaker 1: saving money for her and she has started working out 91 00:04:00,720 --> 00:04:03,280 Speaker 1: at home as well. With the gym that I'm building out, 92 00:04:03,480 --> 00:04:07,240 Speaker 1: there are ways to do it affordably without spending out 93 00:04:07,280 --> 00:04:09,560 Speaker 1: the nose. But then there are some specialized pieces of 94 00:04:09,560 --> 00:04:11,840 Speaker 1: equipment like a rack, which is gonna cost like a 95 00:04:11,920 --> 00:04:14,640 Speaker 1: round one thousand bucks in order to get one of those. Yeah, 96 00:04:14,680 --> 00:04:15,800 Speaker 1: that's like the most expensive thing. 97 00:04:15,800 --> 00:04:17,160 Speaker 2: I think if you're committed to doing it for a 98 00:04:17,240 --> 00:04:20,960 Speaker 2: year and you've kind of started small. And that's another 99 00:04:20,960 --> 00:04:22,480 Speaker 2: thing too. I think it's actually a really good tip 100 00:04:22,520 --> 00:04:25,279 Speaker 2: probably is to start small and most of it you 101 00:04:25,320 --> 00:04:28,200 Speaker 2: don't necessarily need tons of equipment to furnish our home gym. 102 00:04:28,360 --> 00:04:30,480 Speaker 2: You're starting with just a few things, some dumbells from 103 00:04:30,520 --> 00:04:32,600 Speaker 2: fundles only that you kind of already had on your hand. 104 00:04:32,760 --> 00:04:34,680 Speaker 2: And now you're saying, listen, I've been doing it consistently 105 00:04:34,760 --> 00:04:36,760 Speaker 2: for a month or so, sticking with it, and so 106 00:04:37,160 --> 00:04:40,400 Speaker 2: because of that, I like can look off into the 107 00:04:40,400 --> 00:04:42,600 Speaker 2: future and see myself doing this long term, I want 108 00:04:42,640 --> 00:04:44,680 Speaker 2: to add these things to the mix, and yeah, you're 109 00:04:44,920 --> 00:04:46,120 Speaker 2: you're gonna save a lot of money. 110 00:04:45,960 --> 00:04:46,960 Speaker 1: After that first year. Yeah. 111 00:04:47,080 --> 00:04:49,120 Speaker 2: So if you're gonna start charging your neighbors to come 112 00:04:49,200 --> 00:04:50,880 Speaker 2: work out at your gym, and that's gonna make you 113 00:04:50,920 --> 00:04:51,240 Speaker 2: big one. 114 00:04:51,240 --> 00:04:52,560 Speaker 1: Now they get to work out for free because of 115 00:04:52,560 --> 00:04:54,680 Speaker 1: the accountability. That's actually one of the aspects that I 116 00:04:54,760 --> 00:04:56,280 Speaker 1: knew I wasn't gonna be able to replace, is that 117 00:04:56,320 --> 00:04:58,920 Speaker 1: when you go in person, you're working alongside like ten 118 00:04:59,000 --> 00:05:01,280 Speaker 1: to twenty people who are also really getting after it. 119 00:05:01,320 --> 00:05:04,280 Speaker 1: But well, I push myself as hard by myself. Well, 120 00:05:04,320 --> 00:05:06,440 Speaker 1: I think that is yet to be determined. But having 121 00:05:06,480 --> 00:05:08,719 Speaker 1: a friend, so I've got a neighbor he's like three 122 00:05:08,760 --> 00:05:10,880 Speaker 1: I mean literally his buddy three houses down, and he 123 00:05:10,960 --> 00:05:12,640 Speaker 1: was also at the gym and he's kind of looking 124 00:05:12,680 --> 00:05:13,880 Speaker 1: for a way to switch things up as well. So 125 00:05:13,920 --> 00:05:16,360 Speaker 1: we're kind of holding each other accountable. There's dual savings 126 00:05:16,400 --> 00:05:17,840 Speaker 1: going on. The gym's going to put a hit out 127 00:05:17,880 --> 00:05:20,120 Speaker 1: for you. Now if you steal I love that gem. 128 00:05:20,160 --> 00:05:22,920 Speaker 1: I would one hundred percent recommend for folks who are 129 00:05:22,920 --> 00:05:25,160 Speaker 1: initially getting into it. See that's the other thing that's 130 00:05:25,200 --> 00:05:27,600 Speaker 1: true because you go there and you learn the technique 131 00:05:27,600 --> 00:05:30,040 Speaker 1: and you learn the right way to move some of 132 00:05:30,080 --> 00:05:32,600 Speaker 1: these weights and stuff because I remember, so this is 133 00:05:32,640 --> 00:05:34,480 Speaker 1: a shout out to a new but you could hurt yourself. Yeah, 134 00:05:34,520 --> 00:05:36,880 Speaker 1: so shout out so previous a previous episode. We did 135 00:05:37,400 --> 00:05:41,560 Speaker 1: a whole CrossFit and finances episode, just like the crossover. Yeah, 136 00:05:41,640 --> 00:05:43,560 Speaker 1: that sounds rendant to say, but like, there are certain 137 00:05:43,600 --> 00:05:47,040 Speaker 1: things you learn from being physically active and how you 138 00:05:47,080 --> 00:05:50,200 Speaker 1: can apply that to your money. We mentioned CrossFit and 139 00:05:50,279 --> 00:05:53,279 Speaker 1: listener Amanda, she actually reached out at the time was like, hey, 140 00:05:53,839 --> 00:05:56,640 Speaker 1: love the show. Really loved this episode, of course because 141 00:05:56,640 --> 00:05:58,599 Speaker 1: I'm also into CrossFit, and she said to check out 142 00:05:58,640 --> 00:06:02,480 Speaker 1: this app called street Parking because they offer the programming. 143 00:06:02,880 --> 00:06:04,960 Speaker 1: And at the time I didn't. Well, I was like, oh, 144 00:06:05,000 --> 00:06:07,720 Speaker 1: that's great. I could totally see myself doing that one day, 145 00:06:08,160 --> 00:06:10,640 Speaker 1: and a that day has finally come, which is fun 146 00:06:10,720 --> 00:06:13,080 Speaker 1: to see. But b I didn't understand why it was 147 00:06:13,080 --> 00:06:14,640 Speaker 1: called street parking back then, because I was like, what 148 00:06:14,720 --> 00:06:16,640 Speaker 1: a weird name for a fitness app. But the whole 149 00:06:16,640 --> 00:06:19,040 Speaker 1: idea is that you build out your garage and your 150 00:06:19,040 --> 00:06:21,200 Speaker 1: car now has to be out on the street. Right, yeah, 151 00:06:21,400 --> 00:06:24,000 Speaker 1: which is it's a good thing you've only got one car. Yeah, yeah, exactly, 152 00:06:24,080 --> 00:06:27,279 Speaker 1: it's kind of dense. Did not at all get it initially. 153 00:06:27,440 --> 00:06:30,159 Speaker 1: Well that's cool, that's cool, But maybe we'll link to 154 00:06:30,400 --> 00:06:33,359 Speaker 1: that previous episode. If folks are into fitness and finances 155 00:06:33,400 --> 00:06:34,120 Speaker 1: at the same time. 156 00:06:33,960 --> 00:06:35,719 Speaker 2: And these are the kinds of things that people are 157 00:06:36,240 --> 00:06:38,359 Speaker 2: I think in their everyday lives. They've got to wrestle 158 00:06:38,360 --> 00:06:40,159 Speaker 2: that kind of stuff because you gin memberships. Yeah, if 159 00:06:40,160 --> 00:06:42,080 Speaker 2: you're LA Fitness and it's real close by and it's 160 00:06:42,120 --> 00:06:45,000 Speaker 2: twenty bucks a month, like that's not overwhelmingly expensive. 161 00:06:45,040 --> 00:06:49,240 Speaker 1: But if you want some of these trainer led fitness experiences, 162 00:06:49,480 --> 00:06:51,320 Speaker 1: those can be a lot more expensive and more that 163 00:06:51,440 --> 00:06:53,880 Speaker 1: high intensity training as well. That's the other part of 164 00:06:53,880 --> 00:06:55,440 Speaker 1: I love about it, is just you're getting after it 165 00:06:55,440 --> 00:06:56,760 Speaker 1: for a short amount of time and then you can 166 00:06:56,839 --> 00:06:59,280 Speaker 1: just move on with life, as opposed to like standing 167 00:06:59,279 --> 00:07:01,719 Speaker 1: there staring at your biceps in the mirror, Like. 168 00:07:01,680 --> 00:07:03,600 Speaker 2: I still like to do that even though there's nothing 169 00:07:03,600 --> 00:07:05,880 Speaker 2: to look at. Well, and I think the other thing 170 00:07:06,040 --> 00:07:08,160 Speaker 2: you mentioned this is having someone to do it with 171 00:07:08,360 --> 00:07:10,440 Speaker 2: that can be that that is the one of the 172 00:07:10,480 --> 00:07:12,960 Speaker 2: biggest hurdles and That is why people i think choose 173 00:07:13,160 --> 00:07:16,040 Speaker 2: fitness classes is because they're more likely to stick with 174 00:07:16,080 --> 00:07:17,480 Speaker 2: it if they know that their friend's going to be 175 00:07:17,520 --> 00:07:19,160 Speaker 2: there and they're gonna be like, oh, why'd you over 176 00:07:19,160 --> 00:07:22,480 Speaker 2: sleep today, Matt or Sheila or whoever it is. And 177 00:07:22,760 --> 00:07:25,400 Speaker 2: you've got that accountability And if you have that and 178 00:07:25,480 --> 00:07:28,440 Speaker 2: you can incorporate that in an at home setup, that's. 179 00:07:28,360 --> 00:07:30,440 Speaker 1: Huge, even at a small level, even with just one 180 00:07:30,480 --> 00:07:32,840 Speaker 1: other person. Yeah, but I'm curious too because the app 181 00:07:32,880 --> 00:07:35,240 Speaker 1: I'm looking so street parking. I think they have like 182 00:07:35,240 --> 00:07:37,760 Speaker 1: a community aspect to it, and so like if say, 183 00:07:37,800 --> 00:07:40,280 Speaker 1: for instance, if you've got a buddy who's also doing that, 184 00:07:40,320 --> 00:07:42,520 Speaker 1: like you're doing the same workhouse regardless of where you live, 185 00:07:42,600 --> 00:07:44,520 Speaker 1: like you could this could be a buddy that lives 186 00:07:44,520 --> 00:07:46,559 Speaker 1: in like Australia, like on the other side of the world. 187 00:07:46,760 --> 00:07:49,400 Speaker 1: And in a similar way that you found the competitive 188 00:07:49,400 --> 00:07:52,440 Speaker 1: element with the garment app to be something that fueled you. 189 00:07:52,480 --> 00:07:54,000 Speaker 1: It didn't even you didn't have to go run in 190 00:07:54,040 --> 00:07:55,920 Speaker 1: with somebody, right, but just the fact that somebody else 191 00:07:56,000 --> 00:07:58,440 Speaker 1: was also a lot of the time. Yeah, but like 192 00:07:58,480 --> 00:08:00,440 Speaker 1: the challenge sort of aspect of it where you're just like, 193 00:08:00,520 --> 00:08:03,040 Speaker 1: all right, I could just mail it in and maybe 194 00:08:03,040 --> 00:08:04,560 Speaker 1: I just want to watch a movie today. But let 195 00:08:04,600 --> 00:08:06,360 Speaker 1: me just hadn't gotten a run in today, Let me 196 00:08:06,360 --> 00:08:08,600 Speaker 1: go for a run. There's there's that element of it 197 00:08:08,640 --> 00:08:11,320 Speaker 1: as well, where someone doesn't necessarily have to be there 198 00:08:11,320 --> 00:08:11,640 Speaker 1: in person. 199 00:08:11,680 --> 00:08:14,800 Speaker 2: There's more digital accountability now, which like my runs post 200 00:08:14,800 --> 00:08:17,240 Speaker 2: to Strava, people see them, and it's not like I'm 201 00:08:17,280 --> 00:08:20,200 Speaker 2: showing off for anybody, but it just I know some 202 00:08:20,240 --> 00:08:22,000 Speaker 2: of my friends are going to be like, uh wow, 203 00:08:22,040 --> 00:08:23,400 Speaker 2: I haven't seen Joel run in a week and a 204 00:08:23,440 --> 00:08:25,760 Speaker 2: half far, And not that I care. It's mostly ninety 205 00:08:25,800 --> 00:08:27,520 Speaker 2: five percent of it is from me, but that is 206 00:08:27,600 --> 00:08:29,320 Speaker 2: at least one piece of there's an. 207 00:08:29,200 --> 00:08:31,440 Speaker 1: Element of that. There's that competitivelopment. By the way, you 208 00:08:31,480 --> 00:08:33,480 Speaker 1: said Strava are you? Are you posting on Strava as well? 209 00:08:33,559 --> 00:08:36,120 Speaker 1: Or it goes automatically from the garment. I never actually 210 00:08:36,160 --> 00:08:37,960 Speaker 1: go on the app itself, but no. Interesting. 211 00:08:38,000 --> 00:08:39,520 Speaker 2: Yeah, so I don't even I don't should. A lot 212 00:08:39,520 --> 00:08:41,520 Speaker 2: of my friends runs but and do that as well. Yeah, 213 00:08:41,679 --> 00:08:43,760 Speaker 2: all right, let's mention the beer we're having on this episode, Matt. 214 00:08:43,800 --> 00:08:47,079 Speaker 2: This one's called hand Warmers. It's by Carton Brewing. Listener 215 00:08:47,160 --> 00:08:48,839 Speaker 2: Michael sent this one our way. This is kind of 216 00:08:48,840 --> 00:08:51,079 Speaker 2: a funky one. We'll get our thoughts on this. Vanilla 217 00:08:51,200 --> 00:08:54,040 Speaker 2: Chai latte hef advisen Yeah at the end of the episode. 218 00:08:54,160 --> 00:08:55,480 Speaker 2: And by the way, if you have a money question, 219 00:08:55,720 --> 00:08:58,559 Speaker 2: we'd love to hear from you. You can just record 220 00:08:58,679 --> 00:09:01,720 Speaker 2: a voice memo on the app on your phone, email 221 00:09:01,800 --> 00:09:03,520 Speaker 2: it over to us at how to moneypod at gmail 222 00:09:03,520 --> 00:09:05,640 Speaker 2: dot com and hopefully we can take it on the 223 00:09:05,679 --> 00:09:07,880 Speaker 2: next ask HTM episode. Or you can go to how 224 00:09:07,960 --> 00:09:10,720 Speaker 2: to money dot com slash ask for kind of specific 225 00:09:10,760 --> 00:09:12,800 Speaker 2: directions on how to do that. Matt, let's get you 226 00:09:12,880 --> 00:09:16,360 Speaker 2: a question about five twenty nine plans. This list is 227 00:09:16,400 --> 00:09:18,760 Speaker 2: thinking about using them in a way that most people don't. 228 00:09:19,200 --> 00:09:22,200 Speaker 3: Hey Manngel, this is Mic from California. Been listening to 229 00:09:22,240 --> 00:09:24,000 Speaker 3: the show for a few years now and really appreciate 230 00:09:24,000 --> 00:09:26,800 Speaker 3: all the information. My question today is about using five 231 00:09:26,840 --> 00:09:30,400 Speaker 3: to nine funds for private elementary school. My wife and 232 00:09:30,480 --> 00:09:33,360 Speaker 3: I have two kids, aged four and two, and we 233 00:09:33,400 --> 00:09:35,200 Speaker 3: have an account for each of them that we contribute 234 00:09:35,200 --> 00:09:39,080 Speaker 3: a small amount to each month. Initially, this was going 235 00:09:39,160 --> 00:09:41,679 Speaker 3: to be used for their higher education. However, our four 236 00:09:41,679 --> 00:09:44,640 Speaker 3: wheel just started at private elementary school. We read that 237 00:09:44,679 --> 00:09:46,760 Speaker 3: you can use five to nine funds to pay for this. 238 00:09:47,880 --> 00:09:50,240 Speaker 3: Looking a little bit deeper, we found that the state 239 00:09:50,240 --> 00:09:52,559 Speaker 3: of California has a cap of ten thousand dollars per 240 00:09:52,640 --> 00:09:55,720 Speaker 3: year per student and a two and a half percent 241 00:09:55,760 --> 00:09:59,200 Speaker 3: penalty as well as you are charged your normal income 242 00:09:59,200 --> 00:10:01,640 Speaker 3: tax rate at the state level if you use the 243 00:10:01,720 --> 00:10:06,560 Speaker 3: funds for private elementary education. My thought is we could 244 00:10:06,600 --> 00:10:08,280 Speaker 3: put the money that we're going to pay for the 245 00:10:08,320 --> 00:10:12,319 Speaker 3: tuition into the five to nine plan, let the funds 246 00:10:12,400 --> 00:10:15,120 Speaker 3: earn a little bit of return, and then pay the 247 00:10:15,120 --> 00:10:19,080 Speaker 3: tuition twice a year from the five to night plan. However, 248 00:10:19,360 --> 00:10:23,120 Speaker 3: I think any returns from the investments probably would be 249 00:10:23,160 --> 00:10:26,880 Speaker 3: eaten up by the penalties and the taxes that the 250 00:10:26,880 --> 00:10:30,560 Speaker 3: state charges. Am I missing something here? California does not 251 00:10:30,640 --> 00:10:34,760 Speaker 3: offer any income tax breaks for money contributed to these plans. 252 00:10:35,440 --> 00:10:37,840 Speaker 3: My wife and I both work and are the higher 253 00:10:37,880 --> 00:10:41,040 Speaker 3: end of income earners. Do you have any advice? Thanks? 254 00:10:41,320 --> 00:10:44,520 Speaker 1: Have a good one, all right, Mike. It is true 255 00:10:44,520 --> 00:10:46,840 Speaker 1: that you can, in fact use five twenty nine funds 256 00:10:47,240 --> 00:10:50,880 Speaker 1: to fund private school these days, private elementary school, which 257 00:10:51,280 --> 00:10:53,840 Speaker 1: can be helpful for some folks who are planning ahead. 258 00:10:53,880 --> 00:10:55,719 Speaker 1: When did that change, like what four or five years ago? 259 00:10:56,600 --> 00:10:58,640 Speaker 1: And specifically though, if you live in a state where 260 00:10:58,640 --> 00:11:02,040 Speaker 1: there's a tax benefit, but so here's the TLDR in 261 00:11:02,120 --> 00:11:05,440 Speaker 1: a state like California where five twenty nine planes don't 262 00:11:05,480 --> 00:11:08,800 Speaker 1: feel much love, it actually makes zero sense, in our 263 00:11:08,840 --> 00:11:11,080 Speaker 1: opinion feet to go this route. So you boom, there's 264 00:11:11,080 --> 00:11:13,000 Speaker 1: your answer. So you mentioned I was next question, jol 265 00:11:13,000 --> 00:11:14,240 Speaker 1: There's a lot. There's a lot more to get to. 266 00:11:14,440 --> 00:11:16,640 Speaker 1: You mentioned that I was doing this for for Emily's 267 00:11:16,640 --> 00:11:19,520 Speaker 1: grad school. And the reason that it made sense for 268 00:11:19,640 --> 00:11:21,440 Speaker 1: us to stick money into a five twenty nine plan, 269 00:11:21,480 --> 00:11:23,760 Speaker 1: even if we were pulling it right back out, was 270 00:11:24,040 --> 00:11:26,400 Speaker 1: because we have a state tax break here in the 271 00:11:26,440 --> 00:11:28,679 Speaker 1: state of Georgia, and so I would stick it in. 272 00:11:28,880 --> 00:11:29,520 Speaker 1: I could pull it. 273 00:11:29,559 --> 00:11:31,839 Speaker 2: Right back out and then just save what five something 274 00:11:31,920 --> 00:11:35,480 Speaker 2: percent on in state income tax. But my goal wasn't 275 00:11:35,480 --> 00:11:37,880 Speaker 2: to grow the money for the future, because this was 276 00:11:37,960 --> 00:11:42,360 Speaker 2: money we were using essentially on education immediately. 277 00:11:42,480 --> 00:11:45,120 Speaker 1: It's not that you weren't counting on it to grow. 278 00:11:45,200 --> 00:11:47,240 Speaker 1: You I'm getting I'm assuming you put that money in 279 00:11:47,280 --> 00:11:49,360 Speaker 1: there and you did not, in fact buy any funds 280 00:11:49,400 --> 00:11:51,000 Speaker 1: with that. I'm assuming you're sitting there as cash. 281 00:11:51,080 --> 00:11:53,079 Speaker 2: I mean literally literally put it in one day, pull 282 00:11:53,080 --> 00:11:55,160 Speaker 2: it out the next cast. I actually I put a 283 00:11:55,160 --> 00:11:57,040 Speaker 2: little bit more in her fun and I kept it 284 00:11:57,080 --> 00:11:58,880 Speaker 2: in there just because I'm a nerd, and I can 285 00:11:58,920 --> 00:11:59,880 Speaker 2: always transfer it into. 286 00:11:59,720 --> 00:12:00,360 Speaker 1: The kid name. 287 00:12:00,480 --> 00:12:04,360 Speaker 2: So you likely shouldn't be investing those funds because of 288 00:12:04,480 --> 00:12:08,440 Speaker 2: a truncated timeline. So Mike's talking about let's say, putting 289 00:12:08,480 --> 00:12:09,960 Speaker 2: money in for his four year old needing it in 290 00:12:10,000 --> 00:12:13,280 Speaker 2: a couple of years, Well, in that case, you wouldn't 291 00:12:13,320 --> 00:12:16,280 Speaker 2: be very wise to invest those funds in hoping that 292 00:12:16,320 --> 00:12:19,040 Speaker 2: they grow substantially. You know, one of the main reasons 293 00:12:19,080 --> 00:12:21,400 Speaker 2: that five twenty nine funds are cool is because you 294 00:12:21,480 --> 00:12:24,720 Speaker 2: can grow a substantial nest egg over roughly one point 295 00:12:24,720 --> 00:12:28,080 Speaker 2: five decades, right if you start early. And that's really 296 00:12:28,080 --> 00:12:31,199 Speaker 2: thanks to compounding returns. So if you shrink the timeline, 297 00:12:31,480 --> 00:12:33,960 Speaker 2: which is what Mike's thinking of doing, you really lose 298 00:12:34,000 --> 00:12:36,800 Speaker 2: that ability, largely because the market doesn't have enough time 299 00:12:37,040 --> 00:12:40,280 Speaker 2: and because you don't have enough of a risk timeline 300 00:12:40,520 --> 00:12:44,400 Speaker 2: to be able to stick money into let's say mostly stocks. 301 00:12:44,559 --> 00:12:47,280 Speaker 1: Yeah, and I would say if his timeline was different. 302 00:12:47,320 --> 00:12:50,760 Speaker 1: Let's say that Mike, even if he's thinking about private 303 00:12:50,840 --> 00:12:52,520 Speaker 1: high school, because if you send your kids to private 304 00:12:52,559 --> 00:12:54,800 Speaker 1: elementary school, I don't know, maybe you've got a gift 305 00:12:54,800 --> 00:12:56,200 Speaker 1: a child and you want to make sure they receive 306 00:12:56,280 --> 00:13:00,760 Speaker 1: the like top notch krem Dela Cram, highest octane sort 307 00:13:00,800 --> 00:13:03,840 Speaker 1: of higher education, right, well, not higher education high school. 308 00:13:04,320 --> 00:13:06,200 Speaker 1: And if that's the case, I would say that, well, 309 00:13:06,320 --> 00:13:09,480 Speaker 1: that's actually about what ten years off into the future. 310 00:13:10,000 --> 00:13:12,120 Speaker 1: And I would say, hey, if that's the case, then 311 00:13:12,240 --> 00:13:14,720 Speaker 1: it totally is worth investing that money because you have 312 00:13:14,840 --> 00:13:17,480 Speaker 1: you do have a long enough runway even with the 313 00:13:17,520 --> 00:13:20,240 Speaker 1: penalties that California assesses, you have long enough for the 314 00:13:20,240 --> 00:13:22,320 Speaker 1: investments to grow substantially that it might be worth paying 315 00:13:22,320 --> 00:13:24,559 Speaker 1: that penalty. Yeah. But so that being said, though, I 316 00:13:24,559 --> 00:13:26,520 Speaker 1: think it's a shame though that California is one of 317 00:13:26,520 --> 00:13:29,520 Speaker 1: the few states that does have an income tax, but 318 00:13:29,600 --> 00:13:32,600 Speaker 1: that doesn't offer any incentive to save for a child's education. 319 00:13:32,679 --> 00:13:35,080 Speaker 1: They're in a five to twenty nine account and yeah, 320 00:13:35,080 --> 00:13:37,480 Speaker 1: there's fees to use it for its intended purposes. Feels 321 00:13:37,520 --> 00:13:40,200 Speaker 1: like an added insult, and so you're unlikely to out 322 00:13:40,280 --> 00:13:44,280 Speaker 1: earn those fees that California assesses, especially since again investing 323 00:13:44,320 --> 00:13:47,120 Speaker 1: it's just ill advised how quickly you're looking to turn 324 00:13:47,160 --> 00:13:49,560 Speaker 1: around and put those funds to use there by paying 325 00:13:49,600 --> 00:13:52,319 Speaker 1: for that private education. So if I were in your position, 326 00:13:52,640 --> 00:13:55,480 Speaker 1: I mean I would just pay for their education directly 327 00:13:55,480 --> 00:13:58,559 Speaker 1: out of pocket, skipping the five twenty nine account altogether. 328 00:13:58,600 --> 00:14:02,120 Speaker 1: But then again, Joel both this isn't something we've talked about. 329 00:14:02,360 --> 00:14:05,320 Speaker 1: We tend to air more on the frugal side of things, 330 00:14:05,320 --> 00:14:07,800 Speaker 1: and our youngest dudes are currently in state funded pre 331 00:14:07,880 --> 00:14:11,000 Speaker 1: K because it's an option and it's free, and so 332 00:14:11,600 --> 00:14:13,280 Speaker 1: what I told Kate was that it needs to be 333 00:14:13,280 --> 00:14:16,559 Speaker 1: pretty bad for us to not consider going with it. 334 00:14:16,920 --> 00:14:19,240 Speaker 1: I don't know, maybe if we felt that our little 335 00:14:19,320 --> 00:14:21,400 Speaker 1: dude was like extra, extra gifted or something like that, 336 00:14:21,440 --> 00:14:22,840 Speaker 1: I would feel a little bit differently about it. But 337 00:14:22,880 --> 00:14:24,680 Speaker 1: it's like this free option. It's almost as I've meant 338 00:14:24,680 --> 00:14:27,920 Speaker 1: both of them, they're not. So it's almost as if 339 00:14:27,960 --> 00:14:30,080 Speaker 1: there was like some food I was being provided and 340 00:14:30,120 --> 00:14:32,880 Speaker 1: it's just like, all right, you've got like this meal. 341 00:14:32,960 --> 00:14:35,440 Speaker 1: If it's not infested with maggots, that's meeting that's pretty good. 342 00:14:35,480 --> 00:14:38,040 Speaker 1: That like grows on trees, well, that is food. I 343 00:14:38,040 --> 00:14:40,480 Speaker 1: guess there is actually food that does that, or you 344 00:14:40,480 --> 00:14:43,120 Speaker 1: can pay a ton more and you get to have 345 00:14:43,280 --> 00:14:46,200 Speaker 1: like the absolute best that there is to offer. I 346 00:14:46,240 --> 00:14:48,280 Speaker 1: don't know certain folks are going to fall on the 347 00:14:48,320 --> 00:14:50,960 Speaker 1: side of like, we're gonna go with the really nice 348 00:14:51,080 --> 00:14:53,600 Speaker 1: higher ed well and calling high right, because I'm so 349 00:14:53,720 --> 00:14:55,760 Speaker 1: used to thinking college. But that's not what we're talking through. 350 00:14:56,000 --> 00:14:59,240 Speaker 2: I mean, like, and that's where you live often depends 351 00:14:59,280 --> 00:15:01,720 Speaker 2: on and what your income is and what your priorities are. 352 00:15:01,720 --> 00:15:03,880 Speaker 2: It's gonna that's all. Those things are going to determine 353 00:15:03,880 --> 00:15:07,080 Speaker 2: whether or not you pay for your kids education, whether 354 00:15:07,120 --> 00:15:11,680 Speaker 2: you opt for the free public school or in many 355 00:15:11,720 --> 00:15:13,600 Speaker 2: communities there are great charter schools. Your kids go to 356 00:15:13,640 --> 00:15:15,080 Speaker 2: a great charter school map My kids go to a 357 00:15:15,080 --> 00:15:17,440 Speaker 2: public school. And but yeah, I think you're right, Like, 358 00:15:17,520 --> 00:15:21,520 Speaker 2: if if we felt like the standards were subpar, I 359 00:15:21,520 --> 00:15:23,720 Speaker 2: would strongly consider get to the point where you make 360 00:15:23,720 --> 00:15:26,920 Speaker 2: a different decision, Yeah, prioritizing more of our hard earned 361 00:15:26,960 --> 00:15:30,680 Speaker 2: dollars towards our kids' education. But we're fortunate here. Yeah, 362 00:15:30,720 --> 00:15:33,320 Speaker 2: And again, everybody makes different it's all. I'm always surprised 363 00:15:33,320 --> 00:15:36,080 Speaker 2: in when when the schools are great and people still 364 00:15:36,120 --> 00:15:38,400 Speaker 2: decide to fork over big bucks for private education. But 365 00:15:38,440 --> 00:15:40,640 Speaker 2: that's a that's a personal household decision, right, Ye, so. 366 00:15:40,800 --> 00:15:42,880 Speaker 1: I'll have to say, Mike, not trying to yuck all 367 00:15:42,880 --> 00:15:45,560 Speaker 1: over your earm here. I think if that's a priority 368 00:15:45,560 --> 00:15:47,120 Speaker 1: for y'all, man, go for it. Yeah. 369 00:15:47,120 --> 00:15:48,320 Speaker 2: I love it, And I think I want to say 370 00:15:48,320 --> 00:15:50,600 Speaker 2: to this too that it doesn't necessarily mean you shouldn't 371 00:15:50,600 --> 00:15:52,640 Speaker 2: be utilizing a five point nine plan at all. Right, 372 00:15:52,960 --> 00:15:55,400 Speaker 2: if you're crushing your own retirement saving the schools, Mike, 373 00:15:55,640 --> 00:15:57,960 Speaker 2: and you've got leftover money to not only pay for 374 00:15:58,000 --> 00:16:01,040 Speaker 2: your kid's current education expenses or there're soon to be 375 00:16:01,440 --> 00:16:04,560 Speaker 2: education expenses, but you can also save for their future 376 00:16:04,640 --> 00:16:07,240 Speaker 2: education needs at the same time, we'd say go for it. 377 00:16:08,000 --> 00:16:10,360 Speaker 2: Obviously your kids they're still quite young, and you can 378 00:16:10,400 --> 00:16:13,040 Speaker 2: then invest those dollars so they can grow significantly by 379 00:16:13,080 --> 00:16:15,320 Speaker 2: the time, Matt, you're kind of saying, what if you 380 00:16:15,360 --> 00:16:17,200 Speaker 2: know you want to pay for private high school then, 381 00:16:17,520 --> 00:16:20,320 Speaker 2: or pay for their future college. I think then it's 382 00:16:20,480 --> 00:16:23,880 Speaker 2: reasonable to use those five twenty nine plans. You and 383 00:16:23,920 --> 00:16:26,360 Speaker 2: I need neither of us consider five twenty nine plans 384 00:16:26,400 --> 00:16:29,040 Speaker 2: to be a top tier financial priority, but they can 385 00:16:29,080 --> 00:16:32,080 Speaker 2: make a lot of sense. Even in the state of California. 386 00:16:32,160 --> 00:16:34,000 Speaker 2: If you're knocking everything else out of the park, but 387 00:16:34,000 --> 00:16:35,440 Speaker 2: which you just want to make sure that that's what's 388 00:16:35,440 --> 00:16:36,440 Speaker 2: happening first totally. 389 00:16:36,480 --> 00:16:38,880 Speaker 1: Which I'm assuming that, Mike, because he said him and 390 00:16:38,960 --> 00:16:41,040 Speaker 1: his wife are both higher earners, so I'm based on 391 00:16:41,080 --> 00:16:43,800 Speaker 1: what he's saying, I'm assuming that they have accomplished all 392 00:16:43,800 --> 00:16:44,720 Speaker 1: those other money gears. 393 00:16:44,760 --> 00:16:47,920 Speaker 2: If y'all crushing four one k's iras, HSA, stuff like that, 394 00:16:48,280 --> 00:16:50,960 Speaker 2: then five twenty nine plans I think coming into the picture. 395 00:16:51,000 --> 00:16:53,080 Speaker 1: And not to mention too, just some of those different experiences. 396 00:16:53,120 --> 00:16:55,560 Speaker 1: We can focus on the specialized accounts, and you're thinking 397 00:16:55,560 --> 00:16:57,920 Speaker 1: about higher education, but don't forget to invest in just 398 00:16:58,000 --> 00:17:00,840 Speaker 1: the quality of life experiences and things that you can 399 00:17:01,840 --> 00:17:03,440 Speaker 1: spend money on to enrich their lives. 400 00:17:03,480 --> 00:17:05,760 Speaker 2: Now, like me taking my girls to the nation's capital. 401 00:17:05,800 --> 00:17:07,800 Speaker 2: I mean, yeah, we're gonna learn a lot overfall break. 402 00:17:07,840 --> 00:17:09,360 Speaker 1: Heck yeah. That being said, on top of that, we're 403 00:17:09,359 --> 00:17:11,280 Speaker 1: talking about the five twenty nine accounts and how great 404 00:17:11,280 --> 00:17:13,920 Speaker 1: they are. There's a whole lot of flexibility too, because 405 00:17:13,960 --> 00:17:16,960 Speaker 1: you can turn your five twenty nine dollars into roth 406 00:17:17,040 --> 00:17:20,720 Speaker 1: dollars for your kids. We've talked less about how parents 407 00:17:20,760 --> 00:17:23,199 Speaker 1: can use five twenty nine accounts to pay for K 408 00:17:23,280 --> 00:17:26,320 Speaker 1: through twelve education expenses, largely because we don't think it 409 00:17:26,359 --> 00:17:28,919 Speaker 1: makes sense for most folks. But just the longer your 410 00:17:28,960 --> 00:17:30,760 Speaker 1: time horizon, the more you're going to be able to 411 00:17:30,800 --> 00:17:33,480 Speaker 1: invest those five twenty nine dollars, which means it's going 412 00:17:33,560 --> 00:17:35,400 Speaker 1: to have even more time to grow. And so yes, 413 00:17:35,480 --> 00:17:37,679 Speaker 1: finally we do get to get to the higher ed 414 00:17:38,200 --> 00:17:40,760 Speaker 1: portion where the dollars are going to be able to compound. 415 00:17:41,000 --> 00:17:43,399 Speaker 1: I think most folks should take that approach, and Mike 416 00:17:43,400 --> 00:17:46,720 Speaker 1: I said, you definitely should, considering the headwinds that California 417 00:17:46,760 --> 00:17:48,520 Speaker 1: is making you face when it comes to how it 418 00:17:48,560 --> 00:17:49,920 Speaker 1: is that you're going to be allowed to use these 419 00:17:49,880 --> 00:17:51,400 Speaker 1: dollars without fees. Yeah. 420 00:17:51,480 --> 00:17:53,320 Speaker 2: Last thing I wanted to note here too, Matt, is 421 00:17:53,320 --> 00:17:56,240 Speaker 2: that people, no matter what say you live in, there 422 00:17:56,320 --> 00:17:58,760 Speaker 2: is a five to twenty nine plan for your specific state. 423 00:17:59,160 --> 00:18:00,359 Speaker 2: And if you live in a state that has an 424 00:18:00,359 --> 00:18:03,840 Speaker 2: income tax benefit, if you put your money in your 425 00:18:03,840 --> 00:18:05,879 Speaker 2: state's five twenty nine plan, you're going to want to 426 00:18:05,920 --> 00:18:07,679 Speaker 2: go with your state's five to twenty nine plan. But 427 00:18:07,800 --> 00:18:09,640 Speaker 2: if you live in a state that doesn't offer any 428 00:18:09,640 --> 00:18:12,800 Speaker 2: sort of state specific tax benefit, the world is your 429 00:18:12,800 --> 00:18:14,840 Speaker 2: oyster when in terms of five twenty nine plans and 430 00:18:14,880 --> 00:18:16,120 Speaker 2: which ones you choose. 431 00:18:15,960 --> 00:18:18,240 Speaker 1: Or at least the United States is your oyster, right, Yeah, yeah, 432 00:18:18,320 --> 00:18:19,480 Speaker 1: I think yeah. 433 00:18:19,520 --> 00:18:21,960 Speaker 2: And so there are a bunch of plans out there, 434 00:18:22,160 --> 00:18:24,959 Speaker 2: and I would just take into consideration what sort of 435 00:18:25,040 --> 00:18:28,320 Speaker 2: investment options are available and how cheap are those investment options. 436 00:18:28,400 --> 00:18:31,600 Speaker 2: So California actually has a great one, the ScholarShare five 437 00:18:31,600 --> 00:18:33,640 Speaker 2: to twenty nine. When you look at the the fees 438 00:18:33,760 --> 00:18:36,480 Speaker 2: for some of our the things that we would invest 439 00:18:36,520 --> 00:18:40,560 Speaker 2: in inside of that plan, Matt, they're minimal, They're extremely low, 440 00:18:40,640 --> 00:18:40,840 Speaker 2: and so. 441 00:18:40,960 --> 00:18:43,000 Speaker 1: Point zero seven percent is what I was seeing in 442 00:18:43,000 --> 00:18:44,720 Speaker 1: some of the different passive options. 443 00:18:44,800 --> 00:18:47,159 Speaker 2: You can feel really confident sticking your money in the 444 00:18:47,160 --> 00:18:49,320 Speaker 2: ScholarShare five twenty nine plan. And just a reminder, Matt, 445 00:18:49,359 --> 00:18:51,920 Speaker 2: this is something else that people bump up against. Maybe 446 00:18:51,920 --> 00:18:54,440 Speaker 2: an advisor or a bank tries to say, oh, it 447 00:18:54,520 --> 00:18:56,720 Speaker 2: will help you with this five to twenty nine plan. 448 00:18:57,119 --> 00:18:59,359 Speaker 2: But the truth is it's super simple and easy to 449 00:18:59,359 --> 00:19:01,760 Speaker 2: do it yourself, and oftentimes you're going to pay an 450 00:19:01,800 --> 00:19:04,639 Speaker 2: extra meaningful fee if you take them up on that 451 00:19:04,960 --> 00:19:08,240 Speaker 2: offer for help. So DIY five twenty nine plans for 452 00:19:08,359 --> 00:19:09,560 Speaker 2: the win here, do it yourself. 453 00:19:09,560 --> 00:19:11,280 Speaker 1: That's right, So Mike, we hope that gets you pointed 454 00:19:11,280 --> 00:19:14,359 Speaker 1: in the right direction. Joel, we've got more financial topics 455 00:19:14,400 --> 00:19:18,480 Speaker 1: to get to, more investing topics, specifically, like we've got 456 00:19:18,480 --> 00:19:21,520 Speaker 1: a listener who's asking about a more specialized strategy or 457 00:19:21,520 --> 00:19:24,119 Speaker 1: approach to investing for her retirement. We'll get to that 458 00:19:24,280 --> 00:19:34,600 Speaker 1: more right after this. All right, we're back. We've got 459 00:19:34,600 --> 00:19:36,080 Speaker 1: more questions to get to. Matt. 460 00:19:36,119 --> 00:19:39,240 Speaker 2: This next question comes from a listener who really wants 461 00:19:39,240 --> 00:19:41,320 Speaker 2: to know about buy now Pay Later. There's something kind 462 00:19:41,320 --> 00:19:43,359 Speaker 2: of a new wrench thrown into the system. 463 00:19:43,920 --> 00:19:47,840 Speaker 4: Hey, Matt and Joel, this is Orlow calling from old Town, Maine. 464 00:19:48,040 --> 00:19:52,440 Speaker 4: I wanted to get your opinions regarding buy Now Pay Later. Recently, 465 00:19:52,480 --> 00:19:55,560 Speaker 4: I received an email from Chase Bank informing me that 466 00:19:55,640 --> 00:19:58,520 Speaker 4: they will no longer allow Chase credit cards views for 467 00:19:58,560 --> 00:20:02,159 Speaker 4: buy now Pay Later trends action starting October tenth, twenty 468 00:20:02,200 --> 00:20:06,679 Speaker 4: twenty four. Chase does, however, offer their own BNPL service 469 00:20:06,760 --> 00:20:11,680 Speaker 4: called payover Time as an alternative. It offers your interest 470 00:20:11,840 --> 00:20:15,280 Speaker 4: on the purchase, but a fixed monthly fee of up 471 00:20:15,320 --> 00:20:19,240 Speaker 4: to one point seventy two percent of the eligible purchase amount. 472 00:20:20,600 --> 00:20:22,960 Speaker 4: Do you foresee other big banks following a suit in 473 00:20:23,040 --> 00:20:26,680 Speaker 4: crowding companies like Klarna and a firm out of the marketplace. 474 00:20:27,560 --> 00:20:29,520 Speaker 4: Just out of curiosity, I looked at a couple of 475 00:20:29,560 --> 00:20:34,760 Speaker 4: the most popular BNPL websites and they can charge consumers' 476 00:20:34,880 --> 00:20:38,480 Speaker 4: interest rates of up to thirty five percent? How will 477 00:20:38,520 --> 00:20:42,080 Speaker 4: this impact the many Americans that do utilize these services? 478 00:20:42,960 --> 00:20:45,320 Speaker 4: Thank you for taking my question. I'd also like to 479 00:20:45,359 --> 00:20:48,320 Speaker 4: thank you both for the years of thought provoking episodes 480 00:20:48,520 --> 00:20:52,840 Speaker 4: and guest interviews keeping me well informed with the Healthier Show. 481 00:20:52,960 --> 00:20:56,360 Speaker 4: I have gradually shifted from a state of financial anxiety 482 00:20:56,640 --> 00:20:58,760 Speaker 4: to one of financial serenity. 483 00:20:59,359 --> 00:21:01,679 Speaker 1: Cheers, Orley, Thank you so much for that question, and 484 00:21:01,800 --> 00:21:05,240 Speaker 1: congratulations on the financial progress that you've been able to make. 485 00:21:05,240 --> 00:21:07,800 Speaker 1: I would say that moving from he said you moved 486 00:21:07,800 --> 00:21:11,720 Speaker 1: from anxiety to serenity, that does not happen overnight. No, 487 00:21:11,840 --> 00:21:15,119 Speaker 1: it's it's a big across too. Yeah. At times it 488 00:21:15,160 --> 00:21:18,200 Speaker 1: can just seem like a slog, but it's it's also 489 00:21:18,240 --> 00:21:20,639 Speaker 1: cool to kind of pause to reflect and see of 490 00:21:20,680 --> 00:21:23,760 Speaker 1: all the different progress you've made. Yeah, and also he 491 00:21:23,840 --> 00:21:26,040 Speaker 1: mentioned he's from old town, old Town Main Joe, do 492 00:21:26,080 --> 00:21:27,880 Speaker 1: you ever look up some of the different places where 493 00:21:27,880 --> 00:21:31,040 Speaker 1: our listeners are from. There's sometimes like La or like 494 00:21:31,160 --> 00:21:32,760 Speaker 1: New York. I'm like, okay, I know what that looks like. 495 00:21:32,800 --> 00:21:35,000 Speaker 1: I've been there, but you hear something new like old Town, 496 00:21:35,119 --> 00:21:36,760 Speaker 1: and so I've got to google that and get a 497 00:21:36,800 --> 00:21:39,760 Speaker 1: feel for what it's like there. It looks like it's awesome. 498 00:21:40,640 --> 00:21:42,959 Speaker 1: I feel like this is another reason maybe Orlo has 499 00:21:42,960 --> 00:21:46,359 Speaker 1: found some serenity because it's such a peaceful, quaint town. 500 00:21:46,400 --> 00:21:50,160 Speaker 1: It's only an hour fifteen from Acadia National parky as well. 501 00:21:50,520 --> 00:21:52,080 Speaker 1: Can't beat that. Sounds like a place I would love 502 00:21:52,119 --> 00:21:54,399 Speaker 1: to live in the summer. In the winter, though I 503 00:21:54,400 --> 00:21:56,800 Speaker 1: don't know. I might. I'm too wimpy for I think 504 00:21:56,840 --> 00:21:58,399 Speaker 1: you can get too cold the harsh winter months. The 505 00:21:58,400 --> 00:22:00,520 Speaker 1: cost of living there is better than the Nationale as well, 506 00:22:00,560 --> 00:22:01,960 Speaker 1: I believe it. I'm just trying to entice you. 507 00:22:02,000 --> 00:22:04,960 Speaker 2: Okay, well we go on together. I guess we're moving 508 00:22:04,960 --> 00:22:07,440 Speaker 2: the families again. But yeah, no, that seriously mad props 509 00:22:07,440 --> 00:22:09,719 Speaker 2: to Orlo. You're right, mat it takes time, like it's 510 00:22:10,040 --> 00:22:11,840 Speaker 2: it's small steps in the right direction. Then you look 511 00:22:11,880 --> 00:22:13,440 Speaker 2: back a year or two later and you're like, wait 512 00:22:13,440 --> 00:22:16,560 Speaker 2: a second, Wow, look how different things are that's kind 513 00:22:16,600 --> 00:22:18,359 Speaker 2: of how money works. I think most people want the 514 00:22:18,760 --> 00:22:20,600 Speaker 2: light switch thing, but as we've said before, it's more 515 00:22:20,600 --> 00:22:23,640 Speaker 2: like a dimmer switch when you're making progress. And let's 516 00:22:23,640 --> 00:22:27,200 Speaker 2: talk specifically about your question orlow. Chase did announce last 517 00:22:27,200 --> 00:22:30,560 Speaker 2: month that they're not going to allow users to pay 518 00:22:30,800 --> 00:22:35,520 Speaker 2: their BNPL payments with credit card plastic right, So this 519 00:22:35,640 --> 00:22:38,720 Speaker 2: makes complete sense to me, Matt on multiple levels, soally agree. 520 00:22:39,400 --> 00:22:42,160 Speaker 2: One is that the buy now, pay later companies are 521 00:22:42,200 --> 00:22:45,399 Speaker 2: a form of competition for Chase, right, Klarna and a firm. 522 00:22:45,840 --> 00:22:48,240 Speaker 2: Chase is like, well, even if we didn't have our 523 00:22:48,280 --> 00:22:51,000 Speaker 2: own buy now pay later, which we do, but even 524 00:22:51,040 --> 00:22:54,119 Speaker 2: if we didn't, then we would rather people pay with 525 00:22:54,160 --> 00:22:57,600 Speaker 2: the credit card. So maybe we shouldn't make it easy for. 526 00:22:57,600 --> 00:22:58,360 Speaker 1: People to do this. 527 00:22:59,080 --> 00:23:00,960 Speaker 2: But I think the one the thing that we care 528 00:23:01,000 --> 00:23:03,840 Speaker 2: about is that it's a terrible idea to pay off 529 00:23:03,840 --> 00:23:05,200 Speaker 2: one line of credit with another. 530 00:23:05,720 --> 00:23:08,000 Speaker 1: Right as individuals, there's a whole lot of risk there. 531 00:23:08,000 --> 00:23:09,720 Speaker 1: It like it kind of feels like a house of cards. 532 00:23:09,720 --> 00:23:11,879 Speaker 2: So I get why Chase wants to do that, because 533 00:23:11,920 --> 00:23:15,520 Speaker 2: they're adding extra risk to their portfolio if they're allowing 534 00:23:15,520 --> 00:23:18,000 Speaker 2: people to pay off some nefarious form of debt with 535 00:23:18,119 --> 00:23:21,400 Speaker 2: another form of debt, and so other credit card issuers 536 00:23:21,400 --> 00:23:23,200 Speaker 2: have already taken this step. It's not just Chase. 537 00:23:23,960 --> 00:23:27,080 Speaker 1: It's smart for Chase's business, and it might help them 538 00:23:27,160 --> 00:23:29,840 Speaker 1: prevent some consumers from going overboard. I know that they're 539 00:23:29,840 --> 00:23:33,600 Speaker 1: probably not doing this from altruistic motives, but ultimately it's 540 00:23:33,640 --> 00:23:35,760 Speaker 1: going to be better for people not being able to 541 00:23:35,800 --> 00:23:38,480 Speaker 1: be allowed to do this. But then Orlo asked, all right, 542 00:23:38,520 --> 00:23:39,680 Speaker 1: I guess if we think that this is going to 543 00:23:39,760 --> 00:23:43,439 Speaker 1: set off a sort of domino effect, I think so Chase. 544 00:23:43,680 --> 00:23:45,400 Speaker 1: They are the biggest bank in the country, and what 545 00:23:45,480 --> 00:23:48,640 Speaker 1: they do tends to create ripple effects. And even if 546 00:23:48,640 --> 00:23:50,880 Speaker 1: some of the other banks weren't even considering it at all, 547 00:23:50,960 --> 00:23:53,240 Speaker 1: I could totally see AMEX, I could see Bank of 548 00:23:53,240 --> 00:23:56,560 Speaker 1: America falling suit. I think it's especially dangerous too for 549 00:23:56,600 --> 00:24:00,200 Speaker 1: folks who also have credit cards, because that's what that's 550 00:24:00,200 --> 00:24:02,520 Speaker 1: Another part of buy not pay later that is a 551 00:24:02,520 --> 00:24:04,840 Speaker 1: little more nefarious is the fact that it lives outside 552 00:24:04,920 --> 00:24:08,400 Speaker 1: of however it is that you think about credit cards. 553 00:24:08,560 --> 00:24:11,879 Speaker 1: It doesn't necessarily get included in that whole process, you know, 554 00:24:11,920 --> 00:24:13,959 Speaker 1: And so for those who have credit cards. But then 555 00:24:14,000 --> 00:24:16,160 Speaker 1: on top of that they're also throwing in the buy now, 556 00:24:16,160 --> 00:24:19,119 Speaker 1: pay later. I think that's a recipe for disaster, or 557 00:24:19,160 --> 00:24:21,439 Speaker 1: the boxes are laterally ramping up their spending. Do you 558 00:24:21,440 --> 00:24:25,200 Speaker 1: know if on something like Monarch money, if you log 559 00:24:25,240 --> 00:24:26,920 Speaker 1: in there, can you bring in your buy now, pay 560 00:24:26,960 --> 00:24:29,400 Speaker 1: later purchases? Not that I know of, I don't know. Yeah, 561 00:24:29,680 --> 00:24:29,920 Speaker 1: I need. 562 00:24:29,920 --> 00:24:31,800 Speaker 2: I would love to look in at that, because that's 563 00:24:31,840 --> 00:24:33,439 Speaker 2: the thing with the credit cards, at least, that's kind 564 00:24:33,440 --> 00:24:35,840 Speaker 2: of a part of your financial system, and it is 565 00:24:35,960 --> 00:24:39,280 Speaker 2: just how we want you to use them. That's the 566 00:24:39,280 --> 00:24:41,320 Speaker 2: thing people bring up, Matt. They're like, Okay, you guys 567 00:24:41,359 --> 00:24:43,120 Speaker 2: like talk trash about buy now, pay later, But why 568 00:24:43,119 --> 00:24:44,520 Speaker 2: are you fans of credit cards? 569 00:24:44,560 --> 00:24:48,240 Speaker 1: And for multiple reasons. One is because it's easier to 570 00:24:48,320 --> 00:24:51,440 Speaker 1: monitor your purchases with credit cards. And then another thing 571 00:24:51,520 --> 00:24:54,320 Speaker 1: is there are greater protections when you use credit cards 572 00:24:54,320 --> 00:24:56,399 Speaker 1: that you don't have those other benefits when you use 573 00:24:56,440 --> 00:24:58,959 Speaker 1: buy now, pay later. The key is to use them wisely, 574 00:24:59,000 --> 00:25:00,840 Speaker 1: which only fifty perc and of Americans do. 575 00:25:00,960 --> 00:25:02,920 Speaker 2: But that's what we're always preaching over here. We want 576 00:25:02,960 --> 00:25:05,399 Speaker 2: people to use credit cards and use them wisely. You 577 00:25:05,440 --> 00:25:08,159 Speaker 2: can charge back if you let's say don't get the 578 00:25:08,160 --> 00:25:11,600 Speaker 2: product that you ordered or the service that you signed 579 00:25:11,680 --> 00:25:13,000 Speaker 2: up for didn't come through. 580 00:25:13,200 --> 00:25:13,960 Speaker 1: Like you have. 581 00:25:14,080 --> 00:25:18,399 Speaker 2: Recourse, you also can earn rewards from credit cards, but 582 00:25:18,400 --> 00:25:20,360 Speaker 2: I guess so with by now pay later, the only 583 00:25:20,440 --> 00:25:22,520 Speaker 2: reward is that you get more time. 584 00:25:22,440 --> 00:25:25,399 Speaker 1: To pay, you get to consume more stuff. Yep, yeah, yeah, 585 00:25:25,600 --> 00:25:27,480 Speaker 1: that's That's sort of another way I was thinking about 586 00:25:27,520 --> 00:25:29,399 Speaker 1: it is the fact that it's like credit cards are 587 00:25:29,400 --> 00:25:31,960 Speaker 1: an institution, whereas like by not pay later, it feels 588 00:25:31,960 --> 00:25:34,080 Speaker 1: like these free radicals that are just floating around that 589 00:25:34,119 --> 00:25:37,160 Speaker 1: are causing all sorts of havoc. And the fact too, 590 00:25:37,200 --> 00:25:39,600 Speaker 1: with credit cards, you're building up your credit, whereas not 591 00:25:39,680 --> 00:25:41,880 Speaker 1: all by not pay laters report to the credit peers. 592 00:25:42,240 --> 00:25:44,560 Speaker 1: And then on top of that, let's say, if you 593 00:25:44,600 --> 00:25:47,480 Speaker 1: are only exposing yourself to buy not pay later, let's say, okay, 594 00:25:47,520 --> 00:25:50,240 Speaker 1: well I'm not in the dangerous category guys, because I 595 00:25:50,240 --> 00:25:52,320 Speaker 1: don't have any credit cards. And let's say you're a 596 00:25:52,320 --> 00:25:55,200 Speaker 1: younger listener, maybe your gen z like those are seen 597 00:25:55,240 --> 00:25:57,919 Speaker 1: as installment loans, and if you're looking to grow your 598 00:25:57,920 --> 00:26:00,399 Speaker 1: credit score, you want to have a mix of different 599 00:26:00,440 --> 00:26:01,920 Speaker 1: types of credit, and so you want to have those 600 00:26:02,520 --> 00:26:04,879 Speaker 1: revolving lines of credit available to you, not just the 601 00:26:04,880 --> 00:26:07,520 Speaker 1: different installment loans, which is what by not pay later 602 00:26:07,760 --> 00:26:10,840 Speaker 1: gets reported as if they report at all, Yeah, which 603 00:26:11,000 --> 00:26:11,760 Speaker 1: is not always the case. 604 00:26:11,760 --> 00:26:14,119 Speaker 2: You're right, there's so many ways that credit card smart 605 00:26:14,119 --> 00:26:17,760 Speaker 2: credit card usage can benefit us if we pay attention 606 00:26:17,960 --> 00:26:19,879 Speaker 2: and we're smart about it. But there are just no 607 00:26:19,920 --> 00:26:23,200 Speaker 2: such benefits really with buy now, pay later. So great 608 00:26:23,240 --> 00:26:25,560 Speaker 2: question orlo All right, Matt, let's get to our next question. 609 00:26:25,800 --> 00:26:29,879 Speaker 2: This one is about investing. Maybe ramping up the difficulty 610 00:26:29,960 --> 00:26:30,959 Speaker 2: level just a notch or two. 611 00:26:31,280 --> 00:26:33,840 Speaker 5: Hey, jol and Matt, this is McKenzie from Massachusetts. I 612 00:26:33,920 --> 00:26:37,000 Speaker 5: recently listened to the Paul Merriman episode and then I 613 00:26:37,040 --> 00:26:40,479 Speaker 5: picked up his book We're Talking Millions and found his 614 00:26:41,280 --> 00:26:46,240 Speaker 5: two Funds for Life strategy very intriguing. So I wanted 615 00:26:46,240 --> 00:26:48,320 Speaker 5: to know what you think of it and whether you 616 00:26:48,400 --> 00:26:51,880 Speaker 5: follow it. Thanks so much for your insights. Bye. 617 00:26:52,240 --> 00:26:55,000 Speaker 1: All right, mackenzie, thank you for reaching out, and first 618 00:26:55,040 --> 00:26:57,439 Speaker 1: of all, for everyone else out there as you're listening. 619 00:26:57,480 --> 00:27:00,320 Speaker 1: She is referring back to episode seven thirty four if 620 00:27:00,320 --> 00:27:01,920 Speaker 1: you want to go back and listen to that one. 621 00:27:02,280 --> 00:27:05,560 Speaker 1: But Paul Merriman, he is an absolute gem. Within the 622 00:27:05,640 --> 00:27:10,160 Speaker 1: personal finance community, we massively appreciate his approach, his insight, 623 00:27:10,840 --> 00:27:13,280 Speaker 1: and honestly, when it comes down to it, he's for 624 00:27:13,359 --> 00:27:16,919 Speaker 1: a very simple investing strategy. Compared to most folks out 625 00:27:16,960 --> 00:27:18,560 Speaker 1: there who are saying that they have some sort of 626 00:27:18,640 --> 00:27:22,320 Speaker 1: proprietary approach to how does they invest, Paul's is, I 627 00:27:22,320 --> 00:27:24,600 Speaker 1: would say, much more in line with how does we 628 00:27:24,800 --> 00:27:27,840 Speaker 1: like to approach investing. We're fans of keeping things simple. Yeah, 629 00:27:27,880 --> 00:27:30,240 Speaker 1: But that being said, his thesis is that investors can, 630 00:27:30,440 --> 00:27:33,320 Speaker 1: at least according to historical returns, get a better return 631 00:27:33,359 --> 00:27:36,240 Speaker 1: with a combination of target date funds as well as 632 00:27:36,560 --> 00:27:40,000 Speaker 1: small cap value. And that is the uh. That's sort 633 00:27:40,000 --> 00:27:42,040 Speaker 1: of where he stands out and where he's kind of 634 00:27:42,040 --> 00:27:44,760 Speaker 1: making a name for himself, specifically that small cap allocation. 635 00:27:44,920 --> 00:27:46,600 Speaker 1: And he's made a name for himself, Matt. He's been 636 00:27:46,680 --> 00:27:49,440 Speaker 1: running the numbers on this and talking about this strategy 637 00:27:49,560 --> 00:27:52,480 Speaker 1: for a long long time. Paul is in his eighties, 638 00:27:52,480 --> 00:27:54,480 Speaker 1: I believe, and still. 639 00:27:54,240 --> 00:27:56,640 Speaker 2: Still kicking it, still doing it, man, it's still going hard, yeah, 640 00:27:56,680 --> 00:27:58,320 Speaker 2: trying to convince people of this reality. 641 00:27:58,320 --> 00:28:00,080 Speaker 1: And he's got a mission. Yeah. 642 00:28:00,520 --> 00:28:03,200 Speaker 2: He's not like don Quixote, right, He's like for real 643 00:28:03,320 --> 00:28:05,720 Speaker 2: changing minds, and he's using data to do so, which 644 00:28:05,760 --> 00:28:09,119 Speaker 2: I appreciate. And I actually I really love Mackenzie's question too, 645 00:28:09,200 --> 00:28:10,880 Speaker 2: because she's kind of holding our feet to the fire 646 00:28:10,920 --> 00:28:12,879 Speaker 2: on this when she's saying, so you had Paul on 647 00:28:12,960 --> 00:28:15,600 Speaker 2: to talk about this, are you doing what Paul said? 648 00:28:16,280 --> 00:28:18,760 Speaker 2: And that's a great question because we have people, by 649 00:28:18,760 --> 00:28:20,720 Speaker 2: the way of all sorts of different stripes on the 650 00:28:20,760 --> 00:28:24,320 Speaker 2: podcast on Wednesdays on the interview episodes, and typically there's 651 00:28:24,320 --> 00:28:27,879 Speaker 2: somebody it's someone who aligns with our values. They're occasionally 652 00:28:27,880 --> 00:28:30,560 Speaker 2: not always, though not always. We're not bringing people on 653 00:28:30,600 --> 00:28:33,880 Speaker 2: that we like wholeheartedly disagree with, but we don't agree 654 00:28:33,880 --> 00:28:36,639 Speaker 2: with everything everybody says on the show when they come on. 655 00:28:36,960 --> 00:28:39,480 Speaker 2: Although we think that Paul's advice is worth listening to, 656 00:28:39,640 --> 00:28:44,480 Speaker 2: and I have followed suit in my portfolio with Paul's prescription, 657 00:28:45,080 --> 00:28:47,640 Speaker 2: I do follow some advice. I've added some small cat 658 00:28:47,680 --> 00:28:50,320 Speaker 2: value to my investment mix inside of kind of an 659 00:28:50,320 --> 00:28:52,400 Speaker 2: old four one K. I had it at my last job, 660 00:28:52,760 --> 00:28:54,960 Speaker 2: so I have some small cat value exposure. I'm not 661 00:28:55,000 --> 00:28:58,360 Speaker 2: doing it exactly the way that he outlines, but I 662 00:28:58,480 --> 00:29:00,920 Speaker 2: was largely commenced by a side look at history that 663 00:29:01,000 --> 00:29:03,960 Speaker 2: this was a reasonable decision to make. Small cat value 664 00:29:04,000 --> 00:29:09,120 Speaker 2: returns were like thirteen something percent over time MATT versus 665 00:29:09,160 --> 00:29:11,760 Speaker 2: just under ten ten percent returns for the SMP over 666 00:29:11,760 --> 00:29:15,080 Speaker 2: the past eighty plus years. That's a pretty large sample size, right, 667 00:29:15,080 --> 00:29:19,920 Speaker 2: eighty plus years, and it reveals meaningfully higher returns over 668 00:29:19,960 --> 00:29:23,000 Speaker 2: the decade. So a few percentage points it might sound 669 00:29:23,040 --> 00:29:26,080 Speaker 2: insignificant or small, but over a bunch of years that 670 00:29:26,080 --> 00:29:29,000 Speaker 2: adds up to real money for investors. Am I going 671 00:29:29,040 --> 00:29:32,320 Speaker 2: to see better portfolio performance because I've added a roughly 672 00:29:32,440 --> 00:29:36,320 Speaker 2: five percent allocation of small cat value? Maybe I haven't yet. 673 00:29:37,040 --> 00:29:38,960 Speaker 2: And that's why investing is a long term game too, 674 00:29:39,000 --> 00:29:42,160 Speaker 2: because small cat value has been underperforming essentially over the 675 00:29:42,160 --> 00:29:46,800 Speaker 2: past decade. And when it's when that changes is anybody's guess. 676 00:29:47,120 --> 00:29:49,240 Speaker 2: Some people are even saying, am I not change in 677 00:29:49,240 --> 00:29:51,680 Speaker 2: the future? So then or if it changes? Yeah, So 678 00:29:52,240 --> 00:29:53,640 Speaker 2: I guess that gives away the fact that. 679 00:29:53,640 --> 00:29:58,160 Speaker 1: I haven't followed Paul Merriman's recommendation, his prescription here, I'll 680 00:29:58,160 --> 00:30:01,000 Speaker 1: give my reason for that second. But like if you 681 00:30:01,040 --> 00:30:02,760 Speaker 1: are only looking through the lens of like what have 682 00:30:02,800 --> 00:30:04,920 Speaker 1: you done for me lately? I think you are going 683 00:30:05,000 --> 00:30:07,200 Speaker 1: to be unlikely to want to have any exposure to 684 00:30:07,240 --> 00:30:09,880 Speaker 1: small cap value because the last decade, yeah, it's seeing 685 00:30:10,040 --> 00:30:13,760 Speaker 1: growth stocks, it' seeing US stocks succeed wildly, So why 686 00:30:13,800 --> 00:30:15,680 Speaker 1: shouldn't we continue to put all of our eggs in 687 00:30:15,680 --> 00:30:18,000 Speaker 1: that one basket? Why would you even bother with the 688 00:30:18,040 --> 00:30:20,600 Speaker 1: merriment approach? Some of you even called the small cap 689 00:30:20,680 --> 00:30:23,360 Speaker 1: value strategies dead. But for me, I think the biggest 690 00:30:23,400 --> 00:30:26,120 Speaker 1: reason I wasn't completely convinced was the fact that it's 691 00:30:26,120 --> 00:30:28,840 Speaker 1: still felt like timing the market, and a large part 692 00:30:29,320 --> 00:30:32,640 Speaker 1: of Paul and specifically what he called the tell tale chart, 693 00:30:33,040 --> 00:30:35,400 Speaker 1: had to do with the fact that we're due for 694 00:30:35,480 --> 00:30:39,400 Speaker 1: small cap value to basically outperform when lately it hasn't been. 695 00:30:40,080 --> 00:30:41,800 Speaker 1: And that's the part of it that runs me the 696 00:30:41,840 --> 00:30:43,800 Speaker 1: wrong way, because it still kind of feels like timing 697 00:30:43,840 --> 00:30:46,320 Speaker 1: the market, even though you are looking at over a 698 00:30:46,360 --> 00:30:48,280 Speaker 1: larger period of time, He's still looking at these shorter 699 00:30:48,360 --> 00:30:51,680 Speaker 1: periods of time that he expects to see outsized growth. 700 00:30:51,720 --> 00:30:53,760 Speaker 1: And so for me, it's like, all right, well, why 701 00:30:53,840 --> 00:30:55,960 Speaker 1: not just stick with the S and P five hundred 702 00:30:56,040 --> 00:30:59,360 Speaker 1: or just a total stock market fund, because here's the 703 00:30:59,360 --> 00:31:01,560 Speaker 1: thing that keeps it more simple, it's just literally a 704 00:31:01,640 --> 00:31:04,360 Speaker 1: single fund. So the reason, and here's the other part 705 00:31:04,400 --> 00:31:05,600 Speaker 1: of it too, is the reason he calls it the 706 00:31:05,640 --> 00:31:09,520 Speaker 1: two fund approach is because he has that automatically rebalancing 707 00:31:09,520 --> 00:31:13,240 Speaker 1: target date fund to offset some of the volatility that 708 00:31:13,320 --> 00:31:16,120 Speaker 1: you would come to expect with small cap value, and 709 00:31:16,160 --> 00:31:20,640 Speaker 1: so over time it automatically readjusts, therefore leading you potentially 710 00:31:20,760 --> 00:31:23,160 Speaker 1: to a similar place to where I think as total 711 00:31:23,200 --> 00:31:25,120 Speaker 1: stock market fund or an s andp FUF fund or 712 00:31:25,200 --> 00:31:28,200 Speaker 1: fund might end up down the road, but who knows. Again, 713 00:31:28,320 --> 00:31:30,680 Speaker 1: back to what you were saying, Joel, like, it might 714 00:31:30,720 --> 00:31:33,840 Speaker 1: do incredibly well, and we'll all have been wishing that 715 00:31:33,840 --> 00:31:36,600 Speaker 1: we would have followed Paul Merriman with every dollar that 716 00:31:36,640 --> 00:31:38,840 Speaker 1: we had to invest. It's the thing where past performance 717 00:31:38,840 --> 00:31:40,560 Speaker 1: does not guarantee future results. 718 00:31:40,920 --> 00:31:44,320 Speaker 2: But I think if you look into the data, you 719 00:31:44,320 --> 00:31:47,760 Speaker 2: will see that Paul is onto something. It's a historical 720 00:31:47,800 --> 00:31:50,400 Speaker 2: trend that isn't bound to repeat in the same exact way. 721 00:31:50,760 --> 00:31:53,760 Speaker 2: But if small cap value provides higher returns in the 722 00:31:53,800 --> 00:31:56,040 Speaker 2: coming years, you'll be glad you had some of that exposure. 723 00:31:56,080 --> 00:31:58,960 Speaker 2: But also I don't think necessary for investors, no supertaking. 724 00:31:59,040 --> 00:32:00,800 Speaker 1: It's like what we're talking about here is like the 725 00:32:00,880 --> 00:32:04,400 Speaker 1: minutia of like making a good decision. It's insider baseball. 726 00:32:04,440 --> 00:32:07,360 Speaker 1: It's like a conversation Kate and I had recently. We're like, 727 00:32:07,600 --> 00:32:10,120 Speaker 1: which eggs are better? Is it the organic eggs or 728 00:32:10,160 --> 00:32:11,680 Speaker 1: is it the cage free ones? I don't know, and 729 00:32:11,720 --> 00:32:13,360 Speaker 1: we kind of were talking about it, and I was like, 730 00:32:13,360 --> 00:32:15,200 Speaker 1: you know what, it doesn't It actually doesn't really matter 731 00:32:15,480 --> 00:32:18,360 Speaker 1: because the fact that we're buying these eggs a good 732 00:32:18,400 --> 00:32:20,400 Speaker 1: for you from a nutritional standpoint, but being we're not 733 00:32:20,400 --> 00:32:22,720 Speaker 1: spending that money by going out to eat right, and 734 00:32:22,800 --> 00:32:24,840 Speaker 1: so like, either way you come out on the top, 735 00:32:24,960 --> 00:32:26,960 Speaker 1: Like either way you are winning. It's just such a 736 00:32:27,000 --> 00:32:30,360 Speaker 1: small piece of minor detail that we like to talk about. 737 00:32:30,400 --> 00:32:32,160 Speaker 1: If you're really into the stuff. You said baseball, So 738 00:32:32,200 --> 00:32:33,840 Speaker 1: it makes me you think I should give a baseball too. 739 00:32:33,840 --> 00:32:36,200 Speaker 1: It makes me should you bunt with a runner on 740 00:32:36,360 --> 00:32:40,320 Speaker 1: third and try to have them steel home? Make it like, yeah, right? 741 00:32:40,400 --> 00:32:42,920 Speaker 1: It depends on who's on third, depends. 742 00:32:42,640 --> 00:32:43,720 Speaker 2: On how fast they are, And I'm not going to 743 00:32:43,760 --> 00:32:46,480 Speaker 2: get into those on third, thid, But how fast are 744 00:32:46,480 --> 00:32:49,160 Speaker 2: they and who's bunting? And where's the infield position? I mean, 745 00:32:49,200 --> 00:32:51,960 Speaker 2: there's so many ways that you could so many factors 746 00:32:53,280 --> 00:32:55,200 Speaker 2: that would help you decide whether or not it's a 747 00:32:55,200 --> 00:32:57,400 Speaker 2: smart move, and you're gonna come up with a different 748 00:32:57,400 --> 00:33:00,520 Speaker 2: outcome every time you ask the question. And I think 749 00:33:00,600 --> 00:33:03,840 Speaker 2: that's the reason that Matt, you and I typically suggest 750 00:33:03,920 --> 00:33:06,400 Speaker 2: an ultra simplistic total stock market or S and P 751 00:33:06,480 --> 00:33:09,640 Speaker 2: five hundred approach. That is a solid winning strategy for 752 00:33:09,680 --> 00:33:11,680 Speaker 2: the vast majority of people in the wealth building phase 753 00:33:11,720 --> 00:33:15,320 Speaker 2: of their life. And it's so ridiculously simple, and it's 754 00:33:15,360 --> 00:33:18,560 Speaker 2: so incredibly low cost, and it doesn't involve any sort 755 00:33:18,560 --> 00:33:21,600 Speaker 2: of like getting in there and messing around. So, yeah, 756 00:33:21,640 --> 00:33:25,600 Speaker 2: can you complicate things more and potentially see higher returns? Yes, 757 00:33:25,600 --> 00:33:27,400 Speaker 2: of course you can't. That's why we have people like 758 00:33:27,400 --> 00:33:29,720 Speaker 2: Paul merriman on. That's why we have people like Brian 759 00:33:29,760 --> 00:33:33,000 Speaker 2: Ferraldion who talks about investing in single stocks. Those guys 760 00:33:33,040 --> 00:33:37,960 Speaker 2: both understand that advanced maneuvers they're not for everyone. Not 761 00:33:38,000 --> 00:33:41,840 Speaker 2: everybody wants to pay more attention to their portfolio, wants 762 00:33:41,880 --> 00:33:43,720 Speaker 2: to be thinking about it all the time, and so 763 00:33:43,960 --> 00:33:47,280 Speaker 2: for a lot of those folks, ultrasimple is still best. 764 00:33:47,360 --> 00:33:49,520 Speaker 2: And so I guess I would say don't let perfect 765 00:33:49,560 --> 00:33:51,480 Speaker 2: be the enemy of good here, like, don't be too 766 00:33:52,080 --> 00:33:57,200 Speaker 2: nearsighted making investing choices based on recent results. And it's 767 00:33:57,200 --> 00:33:59,880 Speaker 2: really it's anybody's guest which companies, which sectors, which as 768 00:34:00,040 --> 00:34:02,440 Speaker 2: set classes are going to outperform in the coming years 769 00:34:02,440 --> 00:34:05,160 Speaker 2: and decades exactly, So whether or not you decide to 770 00:34:05,200 --> 00:34:08,080 Speaker 2: pursue Paul Merriman's two Funds for Life strategy, which I 771 00:34:08,080 --> 00:34:11,960 Speaker 2: think has a lot of merits. His methodology is sound 772 00:34:12,080 --> 00:34:14,759 Speaker 2: and his bent is to help the folks, So I 773 00:34:14,760 --> 00:34:16,920 Speaker 2: think his voice is one of those voices that is 774 00:34:16,960 --> 00:34:20,680 Speaker 2: worth listening to. It's nice to have that knowledge, especially 775 00:34:20,719 --> 00:34:23,279 Speaker 2: just to help you understand if CNBC's on in the 776 00:34:23,280 --> 00:34:26,319 Speaker 2: background or whatever. It to help you understand kind of 777 00:34:26,320 --> 00:34:28,960 Speaker 2: what's going on with the market. It's going to make 778 00:34:28,960 --> 00:34:31,200 Speaker 2: you a smarter investor, even if you choose not to 779 00:34:31,239 --> 00:34:33,800 Speaker 2: go down the path of his exact investment approach. 780 00:34:33,880 --> 00:34:35,799 Speaker 1: Totally. Yeah, it's just tough because once you start diving 781 00:34:35,800 --> 00:34:37,960 Speaker 1: into the weeds, because then you start asking questions of like, okay, 782 00:34:38,040 --> 00:34:40,839 Speaker 1: small cat value versus like you're talking about CNBC and 783 00:34:40,880 --> 00:34:43,480 Speaker 1: like what you hear about are the big companies news? Right? 784 00:34:43,520 --> 00:34:46,000 Speaker 1: And so like, that's one of the arguments against small 785 00:34:46,040 --> 00:34:47,719 Speaker 1: cat value. And I'm not saying that this is the 786 00:34:47,760 --> 00:34:50,160 Speaker 1: reason to completely avoid it, but one of the arguments 787 00:34:50,200 --> 00:34:52,319 Speaker 1: against it is the fact that companies are only getting 788 00:34:52,360 --> 00:34:55,719 Speaker 1: bigger and bigger, and oftentimes these smaller companies that would 789 00:34:55,760 --> 00:34:58,440 Speaker 1: normally go public, well they don't go public. They instead 790 00:34:58,440 --> 00:35:01,560 Speaker 1: get acquired by these larger companies. And makes me think 791 00:35:01,600 --> 00:35:03,719 Speaker 1: of one of our favorite board games, acquired, Like, that's 792 00:35:03,800 --> 00:35:05,759 Speaker 1: that's how you play that game, Like literally, it's just 793 00:35:05,800 --> 00:35:09,040 Speaker 1: acquiring these smaller corporations and the biggest ones. If you 794 00:35:09,080 --> 00:35:11,799 Speaker 1: have ownership in those biggest companies, you end up winning 795 00:35:11,840 --> 00:35:14,280 Speaker 1: the game. Hopefully you're the what is it, the primary 796 00:35:14,280 --> 00:35:18,200 Speaker 1: stockholder as opposed to second secondary tergiary. And somehow my 797 00:35:18,239 --> 00:35:20,680 Speaker 1: wife still continues to dominate us every time we play 798 00:35:20,719 --> 00:35:22,080 Speaker 1: that game. I feel like she needs to be the 799 00:35:22,120 --> 00:35:26,480 Speaker 1: one that handles. But that's again, if you are into 800 00:35:26,520 --> 00:35:29,480 Speaker 1: the details and the minutia of the market and sectors 801 00:35:29,480 --> 00:35:31,920 Speaker 1: and industries, then sure, I think that's plenty reason for 802 00:35:32,000 --> 00:35:34,000 Speaker 1: you to go in that direction. But either way, you can't. 803 00:35:34,280 --> 00:35:36,919 Speaker 1: It's you're not gonna lose, right again, It's like, should 804 00:35:36,960 --> 00:35:39,920 Speaker 1: I do this really good thing, or this may be 805 00:35:40,080 --> 00:35:43,520 Speaker 1: really really good thing. It's either way. It's like arguing, Joel, 806 00:35:43,520 --> 00:35:45,239 Speaker 1: should we go for a hike in order to stay 807 00:35:45,239 --> 00:35:47,400 Speaker 1: healthy or should we go for a walk, And it's like, well, 808 00:35:47,800 --> 00:35:51,440 Speaker 1: it just depends what one's got more incline and more scenery. 809 00:35:51,480 --> 00:35:53,640 Speaker 1: What if you're hiking in San Francisco and then it's 810 00:35:53,680 --> 00:35:55,719 Speaker 1: really really steep and the houses are pretty. 811 00:35:55,520 --> 00:35:58,000 Speaker 2: That's oh yeah, just walking around. Yeah, that's true, exactly, 812 00:35:58,120 --> 00:35:58,920 Speaker 2: that's good anyway. 813 00:35:59,160 --> 00:36:01,239 Speaker 1: In both cases, you're not spending your money and you're 814 00:36:01,280 --> 00:36:03,239 Speaker 1: not completely consuming it and blowing it in the here 815 00:36:03,280 --> 00:36:03,480 Speaker 1: and now. 816 00:36:03,560 --> 00:36:06,360 Speaker 2: Yeah, I think the big question is asking the question, 817 00:36:06,640 --> 00:36:09,600 Speaker 2: looking into the data and saying is that a path 818 00:36:09,680 --> 00:36:12,080 Speaker 2: I want to pursue or not? And as long as 819 00:36:12,120 --> 00:36:14,600 Speaker 2: you're investing a decent chunk of your income, you're keeping 820 00:36:14,640 --> 00:36:17,800 Speaker 2: the cost low, you're well diversified. That that's the big stuff. 821 00:36:17,960 --> 00:36:20,200 Speaker 2: All right, Matt, We've got more to get to, including 822 00:36:20,200 --> 00:36:23,400 Speaker 2: we're gonna we're gonna solve a tenant landlord dispute in 823 00:36:23,480 --> 00:36:23,920 Speaker 2: just a second. 824 00:36:23,920 --> 00:36:25,279 Speaker 1: We'll get to that right after this. 825 00:36:33,320 --> 00:36:36,719 Speaker 6: Joe, we are back from the break, and enough about investing. 826 00:36:36,920 --> 00:36:39,359 Speaker 1: It is now time for the Facebook question of the week. 827 00:36:39,440 --> 00:36:42,239 Speaker 1: This is from an anonymous poster, and we do know 828 00:36:42,239 --> 00:36:44,880 Speaker 1: that as a lady, and she says that my tenants 829 00:36:44,880 --> 00:36:47,239 Speaker 1: are breaking their lease about six months early because they 830 00:36:47,320 --> 00:36:50,160 Speaker 1: purchased a home. They have been great tenants. Our lease 831 00:36:50,200 --> 00:36:52,879 Speaker 1: requires thirty days notice and a fee equal to two 832 00:36:52,960 --> 00:36:56,520 Speaker 1: months of rent. They asked to discuss this tomorrow. I 833 00:36:56,560 --> 00:36:58,719 Speaker 1: know they're going to ask for some portion waved or 834 00:36:58,760 --> 00:37:01,560 Speaker 1: a discount of some sort. However, they are moving at 835 00:37:01,600 --> 00:37:04,960 Speaker 1: the worst possible time from a market cycle, and the 836 00:37:05,000 --> 00:37:09,040 Speaker 1: rental income just barely covers expenses. Any feedback or counterpoints 837 00:37:09,040 --> 00:37:10,640 Speaker 1: that they do ask for a discount, I get so 838 00:37:10,680 --> 00:37:13,160 Speaker 1: nervous being perceived as the money hungry landlord. But at 839 00:37:13,200 --> 00:37:15,799 Speaker 1: the same time, I know the fee is fair and 840 00:37:15,920 --> 00:37:18,000 Speaker 1: outlined in our lease and I'm just a girl trying 841 00:37:18,040 --> 00:37:20,920 Speaker 1: to provide for my family, which you think, Joel. 842 00:37:20,840 --> 00:37:24,040 Speaker 2: First, I feel the pain. I've had this happen before, 843 00:37:24,200 --> 00:37:27,279 Speaker 2: where a tenant breaks the lease early multiple times, and 844 00:37:27,640 --> 00:37:30,000 Speaker 2: it throws a wrench in things. You're not expecting it, 845 00:37:30,000 --> 00:37:32,880 Speaker 2: and you're right, it can happen at the exact wrong time. 846 00:37:33,120 --> 00:37:35,799 Speaker 2: It can be frustrating, and as I get that too, 847 00:37:35,920 --> 00:37:38,000 Speaker 2: that desires a landlord not to be seen as this 848 00:37:38,280 --> 00:37:42,520 Speaker 2: money grubbing landlord. But as she outlines, like landlords aren't 849 00:37:42,520 --> 00:37:46,160 Speaker 2: always rolling in the dough. They're not always like rich 850 00:37:46,320 --> 00:37:48,960 Speaker 2: estate owners, right, and they can't always weather the storm 851 00:37:49,000 --> 00:37:51,960 Speaker 2: incredibly easily. I think tenants sometimes think that Matt like 852 00:37:52,320 --> 00:37:54,759 Speaker 2: landlord's got to cover They're fine, they're probably making money 853 00:37:54,760 --> 00:37:57,400 Speaker 2: hand over fist on me. For most mom and pop 854 00:37:57,480 --> 00:38:00,920 Speaker 2: small landlords, that's not the case. That's why it's a 855 00:38:00,960 --> 00:38:03,080 Speaker 2: good idea to have even more in savings. By the way, 856 00:38:03,080 --> 00:38:06,160 Speaker 2: if you're a rental property owner, because you never know 857 00:38:06,480 --> 00:38:08,799 Speaker 2: when this kind of stuff can happen, and you might 858 00:38:08,840 --> 00:38:11,919 Speaker 2: incur vacancy that you hadn't expected. So I would say 859 00:38:11,960 --> 00:38:14,839 Speaker 2: to let your lease be your guide. Right, both of us, 860 00:38:14,880 --> 00:38:17,080 Speaker 2: you and I, we've worked with tenants before. We want 861 00:38:17,120 --> 00:38:20,439 Speaker 2: to be kind empathetic landlords. But those mutually agreed upon 862 00:38:20,520 --> 00:38:24,040 Speaker 2: rules where both of your names are down in ink 863 00:38:24,120 --> 00:38:27,239 Speaker 2: at the bottom of the page, those were agreed upon 864 00:38:27,320 --> 00:38:29,600 Speaker 2: for a reason. I would let your tenants know that 865 00:38:29,640 --> 00:38:31,399 Speaker 2: you're going to try and fill the vacancy as quickly 866 00:38:31,440 --> 00:38:34,360 Speaker 2: as possible, but that you can't agree to more generous 867 00:38:34,400 --> 00:38:37,840 Speaker 2: financial terms for them until you have a new lease signed. 868 00:38:37,920 --> 00:38:39,600 Speaker 1: Yeah, so I think what you're getting at is that 869 00:38:40,000 --> 00:38:43,200 Speaker 1: fee is paid unless that she can find some new tenants. 870 00:38:43,200 --> 00:38:44,960 Speaker 1: But the way she is presenting it is that it's 871 00:38:45,000 --> 00:38:47,239 Speaker 1: just a straight up feed no matter what, regardless, and 872 00:38:47,320 --> 00:38:50,120 Speaker 1: so some of the like and that's where hey, this 873 00:38:50,160 --> 00:38:52,080 Speaker 1: is what it states in the lease. It doesn't really 874 00:38:52,120 --> 00:38:54,480 Speaker 1: matter whether I get a new tenant in here before 875 00:38:54,520 --> 00:38:57,960 Speaker 1: that time is up. But that is also somewhat state dependent, 876 00:38:58,080 --> 00:39:00,359 Speaker 1: because some states are going to be more like lord 877 00:39:00,400 --> 00:39:02,840 Speaker 1: friendly than others. For instance, in Georgia, you're allowed to 878 00:39:02,880 --> 00:39:05,520 Speaker 1: hold the tenant responsible for unpaid rent for the remaining 879 00:39:05,520 --> 00:39:08,239 Speaker 1: months of the entire release, but you also have to 880 00:39:08,280 --> 00:39:11,000 Speaker 1: search for new tenants and good faith. And if you 881 00:39:11,160 --> 00:39:13,880 Speaker 1: were to get a new tenant immediately, which is again 882 00:39:13,960 --> 00:39:15,920 Speaker 1: it's probably going to be highly unlikely that that is 883 00:39:15,960 --> 00:39:18,960 Speaker 1: the case, well you couldn't even keep those additional two 884 00:39:18,960 --> 00:39:21,200 Speaker 1: months of rent, and so so much of it does 885 00:39:21,280 --> 00:39:23,160 Speaker 1: kind of come down to where it is that you live. 886 00:39:23,600 --> 00:39:26,640 Speaker 1: And there's typically like a landlord tenant handbook that you 887 00:39:26,680 --> 00:39:28,319 Speaker 1: can consult, but you need to make sure that you 888 00:39:28,320 --> 00:39:30,960 Speaker 1: are familiar with the laws there that govern your local state, 889 00:39:31,320 --> 00:39:31,680 Speaker 1: cause just. 890 00:39:31,640 --> 00:39:33,520 Speaker 2: Because it says that in her lease doesn't mean she 891 00:39:33,520 --> 00:39:35,759 Speaker 2: can charge it, because exactly the laws of the land 892 00:39:35,800 --> 00:39:38,799 Speaker 2: could supersede and say, hey, actually, no, you can't do that. 893 00:39:38,880 --> 00:39:41,279 Speaker 2: Even though both of you signed this thing, the law 894 00:39:41,360 --> 00:39:43,360 Speaker 2: of the state says you're not allowed to charge that 895 00:39:43,400 --> 00:39:44,120 Speaker 2: fee exactly. 896 00:39:44,200 --> 00:39:46,319 Speaker 1: So on one hand, I don't want you to feel 897 00:39:46,320 --> 00:39:48,160 Speaker 1: the pressure to like, oh, I got a book it 898 00:39:48,239 --> 00:39:50,000 Speaker 1: to try to find someone to let them off the hook. 899 00:39:50,400 --> 00:39:52,000 Speaker 1: But at the same time, I don't, like you want 900 00:39:52,000 --> 00:39:53,759 Speaker 1: to be respectful of the fact, like you said that 901 00:39:53,800 --> 00:39:56,480 Speaker 1: they've been great tenants, and so that would honestly encourage 902 00:39:56,480 --> 00:39:58,360 Speaker 1: me as a landlord to try to find someone to 903 00:39:58,400 --> 00:40:00,560 Speaker 1: get in there to minimize the down side for sure 904 00:40:00,600 --> 00:40:01,160 Speaker 1: for both parties. 905 00:40:01,200 --> 00:40:03,880 Speaker 2: Yeah, yeah, And the goal of most landlords and tenants 906 00:40:04,000 --> 00:40:06,759 Speaker 2: is typically to avoid legal recourse, like can we work 907 00:40:06,800 --> 00:40:09,319 Speaker 2: out this out, mono a monoly. We don't want this 908 00:40:09,400 --> 00:40:12,200 Speaker 2: going to some sort of small claims court. Neither of 909 00:40:12,200 --> 00:40:14,960 Speaker 2: you want to end up there, And I'm sure they 910 00:40:15,040 --> 00:40:17,680 Speaker 2: know that they're not making life easy on you, and 911 00:40:17,920 --> 00:40:19,399 Speaker 2: you might not be able to get the same rent 912 00:40:19,440 --> 00:40:21,879 Speaker 2: amount or generate as much interest given kind of what's 913 00:40:21,920 --> 00:40:24,160 Speaker 2: going on. In the market right now. I would explain 914 00:40:24,239 --> 00:40:27,040 Speaker 2: those realities to them and tell them then that you're 915 00:40:27,080 --> 00:40:29,160 Speaker 2: more likely to get a new tenant if you end 916 00:40:29,239 --> 00:40:32,120 Speaker 2: up listing the property for less, because Matt in a 917 00:40:32,120 --> 00:40:34,440 Speaker 2: lot of parts of the country, rents have actually gone 918 00:40:34,719 --> 00:40:38,239 Speaker 2: down in recent months over the past year, but that 919 00:40:38,280 --> 00:40:40,880 Speaker 2: they would need to cover the difference if you listed 920 00:40:40,880 --> 00:40:43,360 Speaker 2: it for less. It would be better for those tenants 921 00:40:43,400 --> 00:40:46,360 Speaker 2: to have to cover two hundred bucks, you know, less 922 00:40:46,400 --> 00:40:48,840 Speaker 2: a month for five months. Then essentially they have to 923 00:40:48,880 --> 00:40:52,680 Speaker 2: cover three months of full rent payments because you listed 924 00:40:52,680 --> 00:40:54,480 Speaker 2: it at the same rent amount and you weren't able 925 00:40:54,480 --> 00:40:56,000 Speaker 2: to find a tenant. So I would be honest about 926 00:40:56,000 --> 00:41:00,239 Speaker 2: those realities, that communication and doing your best to look 927 00:41:00,239 --> 00:41:02,040 Speaker 2: out for them while you're also looking out for your 928 00:41:02,080 --> 00:41:04,359 Speaker 2: property and your own interests. I think that's the. 929 00:41:04,280 --> 00:41:06,400 Speaker 1: Wise way to go. I will say too. She mentioned 930 00:41:06,400 --> 00:41:09,120 Speaker 1: that it's like the worst possible time to list a property, Like, 931 00:41:09,200 --> 00:41:11,600 Speaker 1: I understand that there are more popular times of the 932 00:41:11,680 --> 00:41:13,920 Speaker 1: year to rent, but I will say that at least personally, 933 00:41:13,960 --> 00:41:16,239 Speaker 1: and maybe this is more anecdotally on Live Behalf, but 934 00:41:16,320 --> 00:41:19,239 Speaker 1: like I have listed properties before in what would be 935 00:41:19,280 --> 00:41:20,880 Speaker 1: considered like the worst time of year, like in the 936 00:41:20,880 --> 00:41:22,759 Speaker 1: middle of the winter, and when that has happened, I've 937 00:41:22,840 --> 00:41:24,839 Speaker 1: always found a runner to rent the place. And so 938 00:41:24,920 --> 00:41:26,439 Speaker 1: like I guess what I'm pointing out is it always 939 00:41:26,480 --> 00:41:29,040 Speaker 1: feels nice to list a place. Is it Memorial Day? 940 00:41:29,080 --> 00:41:31,360 Speaker 1: That's just a really like in the spring, it's a 941 00:41:31,400 --> 00:41:33,880 Speaker 1: popular time to move. There's tons of folks moving. But 942 00:41:33,920 --> 00:41:35,640 Speaker 1: guess what that means. I mean also means that there 943 00:41:35,640 --> 00:41:38,640 Speaker 1: are tons of properties available. And yeah, I might have 944 00:41:39,239 --> 00:41:42,279 Speaker 1: three days of showings with like ten people every day 945 00:41:42,320 --> 00:41:45,080 Speaker 1: back to back, but like half those folks don't show up, 946 00:41:45,160 --> 00:41:48,080 Speaker 1: and it's because there are lots of other potential rentals 947 00:41:48,080 --> 00:41:50,360 Speaker 1: out there as opposed to in the winter. It's like, 948 00:41:50,360 --> 00:41:51,920 Speaker 1: all right, you might only have like two folks show 949 00:41:52,000 --> 00:41:53,560 Speaker 1: up to see that place. Yeah, but guess what, it 950 00:41:53,600 --> 00:41:55,839 Speaker 1: only takes one of those folks, And they might think 951 00:41:55,880 --> 00:41:59,200 Speaker 1: you have ten other folks that are interested in that property, 952 00:41:59,360 --> 00:42:02,120 Speaker 1: and maybe you do, who knows, But maybe you're also like, well, 953 00:42:02,120 --> 00:42:04,600 Speaker 1: you're the only person that is signed up to check 954 00:42:04,640 --> 00:42:07,080 Speaker 1: it out. But that's so beautiful about the open market. 955 00:42:07,080 --> 00:42:10,200 Speaker 1: If you reach and agreed upon rents amount and they 956 00:42:10,280 --> 00:42:12,360 Speaker 1: check out, then it's their place. I guess I'm just 957 00:42:12,400 --> 00:42:14,360 Speaker 1: pushing back slightly on like, I don't want you to 958 00:42:14,440 --> 00:42:17,359 Speaker 1: get overly anxious about it not being a great time 959 00:42:17,400 --> 00:42:17,680 Speaker 1: of year. 960 00:42:17,760 --> 00:42:19,960 Speaker 2: And the truth is she's protected, right, even if it 961 00:42:20,000 --> 00:42:22,120 Speaker 2: is a tough time of year, She's protected in this lease. 962 00:42:22,760 --> 00:42:24,759 Speaker 2: But just make sure you also know the laws of 963 00:42:24,800 --> 00:42:27,040 Speaker 2: your state so that you can see, well, how covered 964 00:42:27,080 --> 00:42:29,760 Speaker 2: am I there as well? But I think you're right, Matt, 965 00:42:29,520 --> 00:42:33,120 Speaker 2: don't let that kind of freak you out, because good pictures, 966 00:42:33,120 --> 00:42:35,839 Speaker 2: a solid listing go a long way. Even if there 967 00:42:35,840 --> 00:42:37,840 Speaker 2: are maybe fewer tenants out there looking, there are fewer 968 00:42:37,880 --> 00:42:41,759 Speaker 2: places for those potential tenants to rent, so your place 969 00:42:41,840 --> 00:42:42,560 Speaker 2: is going to stand out. 970 00:42:42,840 --> 00:42:44,520 Speaker 1: Yeah, And whether or not, like how much of a 971 00:42:44,520 --> 00:42:47,080 Speaker 1: concession I make, I think awesome, might depend too on 972 00:42:47,160 --> 00:42:49,440 Speaker 1: how long they've been there in the property. Right So 973 00:42:49,480 --> 00:42:51,040 Speaker 1: if this is a tenant that's only been there, let's 974 00:42:51,080 --> 00:42:53,120 Speaker 1: say for the three months, and then all of a 975 00:42:53,120 --> 00:42:56,759 Speaker 1: sudden they're like, hey, we're out of here, actually I'm 976 00:42:56,760 --> 00:42:59,600 Speaker 1: gonna feel a lot differently about them versus some tenants 977 00:42:59,680 --> 00:43:01,600 Speaker 1: who I literally have in a property right now that 978 00:43:01,640 --> 00:43:03,480 Speaker 1: have been there for over three years. Like we're coming 979 00:43:03,600 --> 00:43:06,439 Speaker 1: up on four years and they reached out recently and said, Hey, 980 00:43:06,960 --> 00:43:09,440 Speaker 1: we were finally moving for work. But what this means, though, 981 00:43:09,480 --> 00:43:11,360 Speaker 1: is that we're having to move in the middle of 982 00:43:11,360 --> 00:43:13,160 Speaker 1: the year, in the middle of the lease. And I 983 00:43:13,200 --> 00:43:15,400 Speaker 1: didn't say this to them, I don't think, but in 984 00:43:15,400 --> 00:43:18,120 Speaker 1: my mind, I'm thinking, you can move whenever you want. 985 00:43:18,239 --> 00:43:20,879 Speaker 1: Like you' all have been awesome tenants. I've never had 986 00:43:20,920 --> 00:43:23,279 Speaker 1: any issues with you. And it's because of the fact 987 00:43:23,280 --> 00:43:25,279 Speaker 1: that they've been there for that long, they've always paid 988 00:43:25,280 --> 00:43:27,960 Speaker 1: on time. It makes you much more willing to be 989 00:43:28,200 --> 00:43:30,160 Speaker 1: lenient when it comes to certain things like that or 990 00:43:30,200 --> 00:43:33,560 Speaker 1: to cut them some slack especially, and to realize and 991 00:43:33,600 --> 00:43:35,320 Speaker 1: there's a silver lining too, because of the fact that 992 00:43:35,320 --> 00:43:37,360 Speaker 1: they've been such great tenants. This particular couple, I know 993 00:43:37,360 --> 00:43:39,680 Speaker 1: I'm under charging it from rent for rents and when 994 00:43:39,680 --> 00:43:42,640 Speaker 1: the last time I logged on to the rent oald manager, 995 00:43:43,160 --> 00:43:45,280 Speaker 1: it suggested a rent amount that I was like three 996 00:43:45,480 --> 00:43:47,680 Speaker 1: three point fifty more than what they're currently paying. And 997 00:43:47,719 --> 00:43:50,759 Speaker 1: so silver lining, Hey, maybe you happen to be in 998 00:43:50,760 --> 00:43:54,200 Speaker 1: a market where rents are actually not going down, maybe 999 00:43:54,239 --> 00:43:57,279 Speaker 1: they're holding steady or even going up, or maybe it's 1000 00:43:57,320 --> 00:43:59,439 Speaker 1: just been a situation where you could have raised rent 1001 00:43:59,480 --> 00:44:01,440 Speaker 1: in the past, but you haven't because you've had great tenants. 1002 00:44:01,520 --> 00:44:04,719 Speaker 2: Yeah, yes, I guess ultimately protect yourself, but be lean 1003 00:44:04,800 --> 00:44:06,680 Speaker 2: it where you can, especially if they've been good tenants. 1004 00:44:06,760 --> 00:44:08,239 Speaker 2: All right, man, let's get back to the beer that 1005 00:44:08,280 --> 00:44:11,320 Speaker 2: we had on this episode. Listener, Michael sent us a 1006 00:44:11,320 --> 00:44:14,000 Speaker 2: few beers, which we really appreciate, Thank you, Michael. And 1007 00:44:14,040 --> 00:44:17,520 Speaker 2: this is I think the most fascinating or unique beer 1008 00:44:17,760 --> 00:44:21,080 Speaker 2: that he sent. This was called hand Warmers by Carton Brewing. 1009 00:44:21,320 --> 00:44:25,000 Speaker 2: It was a vanilla chai latte. Hef avisen. That's a 1010 00:44:25,000 --> 00:44:26,759 Speaker 2: lot of that's a lot of words thrown in there 1011 00:44:26,880 --> 00:44:27,919 Speaker 2: were your thoughts on this beer. 1012 00:44:27,920 --> 00:44:30,440 Speaker 1: I would say it tastes just like a pumpkin spice latte, 1013 00:44:30,719 --> 00:44:32,719 Speaker 1: except for the fact that it didn't have pumpkins. A 1014 00:44:32,719 --> 00:44:35,120 Speaker 1: pumpkin list pumpkin spice latte, but it's got all the flavors, 1015 00:44:35,120 --> 00:44:37,400 Speaker 1: Like I mean, literally, you could read down this can 1016 00:44:38,000 --> 00:44:41,600 Speaker 1: Cardiman yep, all spice yep, send theimon Absolutely like it's 1017 00:44:41,600 --> 00:44:44,040 Speaker 1: got all of the flavors that you might expect in 1018 00:44:44,239 --> 00:44:46,440 Speaker 1: some pumpkin pie, but without the actual pumpkin. 1019 00:44:46,520 --> 00:44:49,399 Speaker 2: Now that we're basically closing in on fall time, it's 1020 00:44:49,640 --> 00:44:51,839 Speaker 2: this feels kind of like a lightfall beer. 1021 00:44:52,520 --> 00:44:55,400 Speaker 1: This his fall in a glass on exactly. 1022 00:44:55,520 --> 00:44:58,279 Speaker 2: Yeah, and so this is not the kind of beer 1023 00:44:58,360 --> 00:45:00,960 Speaker 2: I'm typically going to pick up at at the store. 1024 00:45:01,280 --> 00:45:03,560 Speaker 2: But it tastes exactly like they intended it to taste, 1025 00:45:03,680 --> 00:45:07,799 Speaker 2: and so lots of spice, super fun. I enjoyed this one, 1026 00:45:07,840 --> 00:45:09,960 Speaker 2: even though I wouldn't say, like, give me a six 1027 00:45:10,000 --> 00:45:10,600 Speaker 2: pack of it. 1028 00:45:10,600 --> 00:45:13,319 Speaker 1: It's a beer that signifies the changing of the seasons. Joel. Yeah, 1029 00:45:13,320 --> 00:45:15,040 Speaker 1: We'll think had a little bit of ginger in there 1030 00:45:15,120 --> 00:45:17,680 Speaker 1: as well. Do you like chilat taste? 1031 00:45:17,960 --> 00:45:18,120 Speaker 5: Is that? 1032 00:45:18,160 --> 00:45:18,359 Speaker 4: Ever? 1033 00:45:18,719 --> 00:45:21,360 Speaker 1: It's not really what I go for typically. I was 1034 00:45:21,400 --> 00:45:25,000 Speaker 1: into them in college, and specifically I only recently learned 1035 00:45:25,000 --> 00:45:26,920 Speaker 1: about Is it a dirty chi where like you get 1036 00:45:26,920 --> 00:45:29,879 Speaker 1: a chilatte and they put a shot of espresso as well. 1037 00:45:29,920 --> 00:45:31,319 Speaker 1: I don't know how I never heard of that before. 1038 00:45:31,480 --> 00:45:32,960 Speaker 1: Is it good? Kate got one the other day and 1039 00:45:32,960 --> 00:45:35,040 Speaker 1: I thought it was pretty taste. Okay, yeah, well that's 1040 00:45:35,080 --> 00:45:37,279 Speaker 1: totally a tangent. But I'm glad that you and I 1041 00:45:37,280 --> 00:45:40,400 Speaker 1: got to enjoy this. Thank you Michael for sending this 1042 00:45:40,400 --> 00:45:42,239 Speaker 1: one away so that Joel and I could share. 1043 00:45:42,320 --> 00:45:43,960 Speaker 2: Appreciate you Michael. All right, that's going to do it 1044 00:45:44,000 --> 00:45:45,799 Speaker 2: for this one, Matt. We'll put links to some of 1045 00:45:45,800 --> 00:45:48,640 Speaker 2: the resources we mentioned up in the show notes on 1046 00:45:48,640 --> 00:45:50,839 Speaker 2: our website at how toomoney dot com, and we've got 1047 00:45:51,160 --> 00:45:54,960 Speaker 2: tons of money saving information for you. Their articles, the 1048 00:45:55,000 --> 00:45:57,359 Speaker 2: newsletter that comes out every week, and all of our 1049 00:45:57,400 --> 00:46:00,279 Speaker 2: prior episodes if you want to dig in further. That's 1050 00:46:00,280 --> 00:46:02,000 Speaker 2: going to do it though for this one. Until next time, 1051 00:46:02,360 --> 00:46:03,160 Speaker 2: best Friends Out. 1052 00:46:03,000 --> 00:46:22,520 Speaker 1: And best Friends Out. Surprisingly heart too, like the hef 1053 00:46:22,560 --> 00:46:24,960 Speaker 1: advising the weak part of it, Yeah, had some lift