1
00:00:00,080 --> 00:00:03,400
Speaker 1: Welcome to Hout of Money. I'm Joel and I am Matt.

2
00:00:03,560 --> 00:00:05,560
Speaker 1: Today we're answering your listener questions.

3
00:00:24,720 --> 00:00:27,080
Speaker 2: That's right, buddy, it is Monday, which means we have

4
00:00:27,120 --> 00:00:31,080
Speaker 2: some specific pieces of advice to give to certain individuals

5
00:00:31,080 --> 00:00:33,400
Speaker 2: who have sent us their voice memo to not only

6
00:00:33,479 --> 00:00:36,400
Speaker 2: play here on the podcast, Joel, but to also answer.

7
00:00:36,640 --> 00:00:39,000
Speaker 2: We've got a listener who has a pretty good argument

8
00:00:39,080 --> 00:00:41,200
Speaker 2: for single stock investings.

9
00:00:41,240 --> 00:00:44,559
Speaker 1: We'll address that. Give our thoughts. Can that's brittle mind be?

10
00:00:45,120 --> 00:00:46,120
Speaker 2: Can I handle this?

11
00:00:47,080 --> 00:00:47,280
Speaker 1: Yes?

12
00:00:47,320 --> 00:00:49,280
Speaker 2: We can, And in fact you and I getting ahead

13
00:00:49,280 --> 00:00:50,760
Speaker 2: of ourselves a little bit, but we do a little

14
00:00:50,760 --> 00:00:52,479
Speaker 2: bit of single stock investing. We'll get to that here

15
00:00:52,520 --> 00:00:54,720
Speaker 2: in a second. Another listener is asking about what she

16
00:00:54,760 --> 00:00:57,920
Speaker 2: should be doing about her CD that has come up

17
00:00:57,920 --> 00:00:58,480
Speaker 2: for renewal.

18
00:00:58,520 --> 00:01:00,360
Speaker 1: It has reached maturation.

19
00:01:00,280 --> 00:01:02,760
Speaker 2: When I talking compact discs here even though, which is

20
00:01:03,000 --> 00:01:07,320
Speaker 2: when I thought a young Wei lad and another listener

21
00:01:07,480 --> 00:01:09,880
Speaker 2: he's got this psychological trick for boosting his four O

22
00:01:09,959 --> 00:01:10,240
Speaker 2: one K.

23
00:01:10,640 --> 00:01:10,880
Speaker 1: I don't.

24
00:01:10,920 --> 00:01:12,880
Speaker 2: I'm not sure if he sees it as a psychological trick,

25
00:01:12,920 --> 00:01:15,039
Speaker 2: but we do. We'll get to that plus more on

26
00:01:15,120 --> 00:01:18,000
Speaker 2: today's episode. Yeah, real quick, though I wanted to plug.

27
00:01:18,480 --> 00:01:21,679
Speaker 2: Last week we had Our Wives on. Hopefully you listen

28
00:01:21,880 --> 00:01:24,560
Speaker 2: to that episode. We had a just an awesome conversation

29
00:01:24,640 --> 00:01:28,319
Speaker 2: with the ladies about lifestyle creep the phenomena. But at

30
00:01:28,319 --> 00:01:31,040
Speaker 2: the end of the episode, hopefully you also stayed until

31
00:01:31,080 --> 00:01:33,480
Speaker 2: the very end because we had a little cameo with

32
00:01:33,560 --> 00:01:36,440
Speaker 2: your daughter Joel as well as my daughter. We kind

33
00:01:36,480 --> 00:01:38,839
Speaker 2: of we had a little They were kind of wanting

34
00:01:38,840 --> 00:01:40,760
Speaker 2: to get on. Really, yeah, we'll ask you a quick question.

35
00:01:40,800 --> 00:01:42,880
Speaker 1: I know we were. I don't know. I didn't know

36
00:01:42,920 --> 00:01:44,080
Speaker 1: how I felt about it, but they were like, no,

37
00:01:44,200 --> 00:01:45,360
Speaker 1: for real, we want to jump on for just a

38
00:01:45,400 --> 00:01:47,039
Speaker 1: few minutes. All right, cool, if that's what you want

39
00:01:47,040 --> 00:01:48,520
Speaker 1: to do, let's do. It's a little easter egg there.

40
00:01:48,520 --> 00:01:50,360
Speaker 1: I have to hear their voices and after the music

41
00:01:50,400 --> 00:01:51,400
Speaker 1: talk to them about money first.

42
00:01:51,440 --> 00:01:54,720
Speaker 2: But Eddie specifically, you may have folks may have picked

43
00:01:54,800 --> 00:01:56,480
Speaker 2: up on the fact that she mentioned the fact that

44
00:01:56,520 --> 00:01:59,920
Speaker 2: we might be getting a swimming pool, and this is

45
00:02:00,040 --> 00:02:02,240
Speaker 2: something that Ky and I that we've been considering.

46
00:02:01,880 --> 00:02:03,840
Speaker 1: Better now than two years ago. I guess that is true.

47
00:02:03,840 --> 00:02:06,160
Speaker 2: That is true, but we just made the unfortunate error

48
00:02:06,160 --> 00:02:08,400
Speaker 2: of mentioning this out loud to where the kids can hear.

49
00:02:08,480 --> 00:02:11,200
Speaker 2: So now, no matter what, well, we're gonna have disappointed

50
00:02:11,240 --> 00:02:14,280
Speaker 2: kids if we don't pull the trigger butt And now

51
00:02:14,320 --> 00:02:16,200
Speaker 2: they're like, when's it happen? I know, but we might

52
00:02:16,240 --> 00:02:18,480
Speaker 2: not do it because of how expensive it is.

53
00:02:18,520 --> 00:02:19,080
Speaker 1: Because of that.

54
00:02:19,120 --> 00:02:21,200
Speaker 2: It's not a slam dunk decision in our book, It's

55
00:02:21,200 --> 00:02:23,920
Speaker 2: still something that is that's a debate. It's a conversation

56
00:02:24,000 --> 00:02:27,240
Speaker 2: that Kate and I are having. But possible solution to

57
00:02:27,440 --> 00:02:30,760
Speaker 2: that would be these stock tank pools.

58
00:02:30,880 --> 00:02:33,080
Speaker 1: I just saw something of the at these. I feel

59
00:02:33,080 --> 00:02:35,200
Speaker 1: like they're kind of becoming in vogue. I've seen more

60
00:02:35,240 --> 00:02:37,720
Speaker 1: and more people like sticking them in their backyard, building

61
00:02:37,760 --> 00:02:39,280
Speaker 1: a deck around them, kind of making them look like

62
00:02:39,320 --> 00:02:41,760
Speaker 1: a built in future. They're obviously not as deep as

63
00:02:41,800 --> 00:02:44,320
Speaker 1: one of those like dug in the ground final liner

64
00:02:44,360 --> 00:02:47,360
Speaker 1: pools or concrete pools, but I could see them like

65
00:02:47,680 --> 00:02:49,600
Speaker 1: making sense for a lot of people. What do you think, Yeah, well,

66
00:02:49,800 --> 00:02:53,280
Speaker 1: so just to give folks to be so disappointed, exactly,

67
00:02:53,320 --> 00:02:53,960
Speaker 1: it's a stock tank.

68
00:02:54,000 --> 00:02:56,600
Speaker 2: Well, it's like it's like a livestock water. It's like

69
00:02:56,680 --> 00:02:58,240
Speaker 2: the kind of thing you put on a ranch to

70
00:02:58,320 --> 00:02:59,320
Speaker 2: water your horses.

71
00:02:59,000 --> 00:03:01,040
Speaker 1: Which my kids have literally swim in one of those

72
00:03:01,160 --> 00:03:04,840
Speaker 1: in Mississippi. Oh really yeah yeah, with like dragonflies on

73
00:03:04,880 --> 00:03:07,360
Speaker 1: their back and stuff like that. So this it's truly

74
00:03:07,400 --> 00:03:09,720
Speaker 1: something people do. This wasn't like a pile of dirt

75
00:03:09,720 --> 00:03:11,320
Speaker 1: in Mississippi. No, this was not a hipster one.

76
00:03:11,400 --> 00:03:13,600
Speaker 2: Yeah. Yeah, so this is like an original. This used

77
00:03:13,639 --> 00:03:16,480
Speaker 2: to actually water the livestock, but now we swim in

78
00:03:16,760 --> 00:03:19,520
Speaker 2: exactly whereas the ones I've seen, like on social media,

79
00:03:19,560 --> 00:03:21,760
Speaker 2: it's like younger folks who are like, actually, we can't

80
00:03:21,760 --> 00:03:23,639
Speaker 2: afford a pool, but we can drop a thousand bucks,

81
00:03:23,880 --> 00:03:26,160
Speaker 2: eight hundred bucks, buy one of these tanks filled up

82
00:03:26,160 --> 00:03:27,080
Speaker 2: with water, maintain it.

83
00:03:27,520 --> 00:03:28,880
Speaker 1: But yeah, what you said.

84
00:03:28,800 --> 00:03:32,040
Speaker 2: For our lifestyle, Like, the whole reason to get a

85
00:03:32,080 --> 00:03:34,800
Speaker 2: pool when you have kids is so that they can

86
00:03:35,160 --> 00:03:38,760
Speaker 2: invite friends over chase each other around the deck. There's

87
00:03:38,800 --> 00:03:41,200
Speaker 2: a whole lot of energy that's expended just in playing

88
00:03:41,640 --> 00:03:43,680
Speaker 2: around the pool and then diving in and swimming across

89
00:03:43,880 --> 00:03:45,720
Speaker 2: and all that kind of stuff. Right, And so it's

90
00:03:45,720 --> 00:03:48,480
Speaker 2: not just about can I get my whole body wet, which,

91
00:03:48,600 --> 00:03:50,640
Speaker 2: by the way, because you hop in the bathtub, yeah,

92
00:03:50,680 --> 00:03:52,400
Speaker 2: well yeah, even still it would be different, like I

93
00:03:52,400 --> 00:03:55,480
Speaker 2: would honestly, I am one hundred percent for this. If

94
00:03:55,520 --> 00:03:57,000
Speaker 2: it was just Kate and I, like, if we didn't

95
00:03:57,040 --> 00:03:59,040
Speaker 2: have any kids, and we're thinking, you know, would be cool.

96
00:03:59,080 --> 00:04:01,200
Speaker 2: What if we got like a little plunge pool. You

97
00:04:01,240 --> 00:04:03,040
Speaker 2: can stick it in the garden. I can totally see

98
00:04:03,120 --> 00:04:05,600
Speaker 2: Kate like, oh, I want to play, let's surround it

99
00:04:05,640 --> 00:04:08,320
Speaker 2: by sunflowers and to meta plants and fig trees. It's like,

100
00:04:08,360 --> 00:04:11,800
Speaker 2: you're in this garden, you have this garden oasis. Almost.

101
00:04:11,920 --> 00:04:14,520
Speaker 1: I could one hundred percent totally see us doing that.

102
00:04:15,280 --> 00:04:17,839
Speaker 2: That's a very different vibe though, than having a swimming

103
00:04:17,880 --> 00:04:18,679
Speaker 2: pool with kids.

104
00:04:18,720 --> 00:04:21,440
Speaker 1: Okay, so what we did this year, and granted everyone's

105
00:04:21,440 --> 00:04:23,159
Speaker 1: got their own thing, but you're you're coming to the

106
00:04:23,160 --> 00:04:26,440
Speaker 1: realization that swimming pools, your own swimming pool in your

107
00:04:26,520 --> 00:04:29,760
Speaker 1: yard is crazy expensive. Yeah, we joined, but we're considering it. Yeah,

108
00:04:29,760 --> 00:04:32,600
Speaker 1: you're considering. We both you and I. We don't live

109
00:04:32,640 --> 00:04:34,840
Speaker 1: in HOA neighborhoods, and a lot of ho neighborhoods have

110
00:04:34,880 --> 00:04:36,719
Speaker 1: a pool. That's one of the things that your money

111
00:04:36,760 --> 00:04:40,320
Speaker 1: goes top. Not all of them, obviously, but we joined

112
00:04:40,320 --> 00:04:44,000
Speaker 1: a neighborhood that has a pool, and we paid five

113
00:04:44,040 --> 00:04:46,200
Speaker 1: hundred bucks or something like that, which not cheap, but

114
00:04:46,440 --> 00:04:47,920
Speaker 1: cheaper than button in your own pool. That's for sure,

115
00:04:48,200 --> 00:04:51,919
Speaker 1: five hundred bucks for a year access to this pool.

116
00:04:52,080 --> 00:04:53,760
Speaker 1: And we've used the heck out of that thing, man,

117
00:04:53,800 --> 00:04:55,880
Speaker 1: And I will say that the nice thing about having

118
00:04:55,880 --> 00:04:57,760
Speaker 1: a pool that's not your own, well not having to

119
00:04:57,839 --> 00:04:59,240
Speaker 1: tend to it, right, just the sure.

120
00:04:59,320 --> 00:05:01,800
Speaker 2: That's the other part of yeah, upkeep And like we

121
00:05:01,800 --> 00:05:03,440
Speaker 2: haven't talked about the fact that if and when you

122
00:05:03,480 --> 00:05:06,040
Speaker 2: sell a home, like some folks see that as a downside. Yeah,

123
00:05:06,240 --> 00:05:08,679
Speaker 2: Like there's a lot of folks who are thinking, oh,

124
00:05:08,760 --> 00:05:11,160
Speaker 2: that's a liability. I don't want a house with a pool.

125
00:05:11,160 --> 00:05:13,720
Speaker 2: I literally know somebody when they purchased their home, they

126
00:05:13,760 --> 00:05:16,680
Speaker 2: actually drained the pool filled it with dirt because the

127
00:05:16,720 --> 00:05:18,120
Speaker 2: kids they wanted to be able to, like the kids

128
00:05:18,120 --> 00:05:22,200
Speaker 2: are really into sports like dry land sports, swimming sports,

129
00:05:22,240 --> 00:05:23,760
Speaker 2: and they wanted to be able to like hit baseball's

130
00:05:23,760 --> 00:05:25,520
Speaker 2: and stuff in their backyard. Yeah, they couldn't do that

131
00:05:25,640 --> 00:05:27,360
Speaker 2: until they filled in the pool. And that's crazy.

132
00:05:27,440 --> 00:05:29,240
Speaker 1: Yeah, it's crazy. I was gonna say. The other nice thing,

133
00:05:29,279 --> 00:05:32,239
Speaker 1: by the way, about being a member of somebody else's pool,

134
00:05:32,520 --> 00:05:35,400
Speaker 1: besides the maintenance factor, is lots of times there's like

135
00:05:35,480 --> 00:05:36,840
Speaker 1: a lot of other people there for your kids to

136
00:05:36,839 --> 00:05:38,880
Speaker 1: play with, for you to hang out with. It's been

137
00:05:38,920 --> 00:05:40,880
Speaker 1: one of the nice things. I would love to have

138
00:05:40,920 --> 00:05:42,440
Speaker 1: a best friend with the pool, just saying if I

139
00:05:42,839 --> 00:05:45,640
Speaker 1: have to get any sort of input here, I'm gonna say,

140
00:05:45,640 --> 00:05:48,080
Speaker 1: go for it, Matt. It's your money. I'll come over anytime.

141
00:05:48,200 --> 00:05:49,000
Speaker 2: Fantastic idea.

142
00:05:49,040 --> 00:05:51,120
Speaker 1: I'll bring the beer. It's gonna be it's gonna be

143
00:05:51,120 --> 00:05:51,520
Speaker 1: good times.

144
00:05:51,560 --> 00:05:53,360
Speaker 2: But if every time you came over you bring a

145
00:05:53,400 --> 00:05:56,000
Speaker 2: six pack of something decent, that would go towards just

146
00:05:56,320 --> 00:05:59,800
Speaker 2: what chlorine tablishers like, whatever chemicals you have to maintain.

147
00:06:00,040 --> 00:06:02,440
Speaker 1: Although, but I will vow now that I will do that. Okay,

148
00:06:02,520 --> 00:06:03,440
Speaker 1: you heard it here, folks.

149
00:06:04,960 --> 00:06:07,280
Speaker 2: That's the thing that all a lot of pool manufacturers,

150
00:06:07,279 --> 00:06:09,960
Speaker 2: so we have started to research it. It's it's all

151
00:06:10,000 --> 00:06:12,040
Speaker 2: salt water, which I don't know if those systems are

152
00:06:12,040 --> 00:06:15,440
Speaker 2: more expensive than the old school full on chlorine systems,

153
00:06:15,440 --> 00:06:17,159
Speaker 2: but it seems that like they don't make.

154
00:06:17,000 --> 00:06:18,360
Speaker 1: Pools as cheap as they used to.

155
00:06:18,440 --> 00:06:20,960
Speaker 2: Like everything has done. It's almost like homes right, like

156
00:06:21,200 --> 00:06:21,920
Speaker 2: back table.

157
00:06:21,720 --> 00:06:22,880
Speaker 1: Stakes is six figures now.

158
00:06:22,800 --> 00:06:25,080
Speaker 2: For pool It's like crazy back in the early nineties

159
00:06:25,160 --> 00:06:27,760
Speaker 2: to put a decent kind of vinyl liner pool in

160
00:06:27,839 --> 00:06:29,760
Speaker 2: I don't think it was nearly as much as it

161
00:06:29,800 --> 00:06:32,920
Speaker 2: is now. But everything now is just super nice. Oh

162
00:06:32,920 --> 00:06:34,840
Speaker 2: it's got this tile in lay, and oh you need

163
00:06:34,839 --> 00:06:38,279
Speaker 2: a nice fancy coping around the edge to where it

164
00:06:38,320 --> 00:06:40,000
Speaker 2: looks like it needs to be in some some kind

165
00:06:40,040 --> 00:06:41,000
Speaker 2: of magazine.

166
00:06:40,760 --> 00:06:41,360
Speaker 1: I'll tell Okay.

167
00:06:41,360 --> 00:06:43,400
Speaker 2: I was just like, who's putting in like the vinyl

168
00:06:43,400 --> 00:06:46,760
Speaker 2: pools with a nice concrete slab around it, you know,

169
00:06:46,839 --> 00:06:48,000
Speaker 2: because that'd.

170
00:06:47,760 --> 00:06:49,640
Speaker 1: Be a lot cheaper, You would think, Yes, well, so

171
00:06:49,960 --> 00:06:51,599
Speaker 1: that's what I grew up. It's making the stock pool.

172
00:06:51,640 --> 00:06:54,240
Speaker 1: And also that's true. The above ground pool look a

173
00:06:54,240 --> 00:06:55,080
Speaker 1: little bit s exert too.

174
00:06:55,120 --> 00:06:55,479
Speaker 2: That's true.

175
00:06:55,480 --> 00:06:56,840
Speaker 1: I had a friend that had one of those. Dude,

176
00:06:56,880 --> 00:07:00,239
Speaker 1: he loved it. They built a built some decking around it.

177
00:07:00,400 --> 00:07:04,159
Speaker 1: They thoroughly enjoyed that. It's not quite as forever or awesome,

178
00:07:04,240 --> 00:07:06,560
Speaker 1: but not quite as cool looking and can get things done.

179
00:07:06,720 --> 00:07:07,240
Speaker 2: That's fancy.

180
00:07:07,320 --> 00:07:09,520
Speaker 1: All right, Let's move on matt Let's mention. Beer we're

181
00:07:09,520 --> 00:07:12,280
Speaker 1: having on this episode. This one is called super Megabytes.

182
00:07:12,640 --> 00:07:15,360
Speaker 1: It is by the good people over at Hot Butcher

183
00:07:15,440 --> 00:07:18,360
Speaker 1: for the World. We'll give our thoughts on this dank

184
00:07:18,520 --> 00:07:20,000
Speaker 1: IPA at the end of the episode.

185
00:07:20,160 --> 00:07:20,920
Speaker 2: Yeah, not just dank.

186
00:07:20,960 --> 00:07:21,880
Speaker 1: I just took a sip of it.

187
00:07:22,120 --> 00:07:24,040
Speaker 2: This is I didn't realize this was a triple. You

188
00:07:24,080 --> 00:07:26,320
Speaker 2: can taste the triple is beast up in this beer,

189
00:07:26,360 --> 00:07:28,200
Speaker 2: and I'm glad you and I are just splitting a

190
00:07:28,240 --> 00:07:29,559
Speaker 2: singular bit for sure.

191
00:07:29,720 --> 00:07:31,640
Speaker 1: All Right, If you have a money question, by the way,

192
00:07:31,640 --> 00:07:33,760
Speaker 1: we'd love to tackle it on an upcoming episode. We'd

193
00:07:33,800 --> 00:07:35,520
Speaker 1: love to hear from you. Just go to how Tomoney

194
00:07:35,520 --> 00:07:38,200
Speaker 1: dot com, slash ask, or basically record your question on

195
00:07:38,240 --> 00:07:40,360
Speaker 1: the voice memo app of your phone. Send it our

196
00:07:40,400 --> 00:07:43,560
Speaker 1: way over how Tomoneypod at gmail dot com. Hope to

197
00:07:43,560 --> 00:07:44,840
Speaker 1: hear from you soon. By the way, the funk you

198
00:07:44,960 --> 00:07:47,520
Speaker 1: the question, the better we like them. Weird, Matt. Let's

199
00:07:47,520 --> 00:07:50,200
Speaker 1: get to the first question for this episode. This one

200
00:07:50,240 --> 00:07:54,280
Speaker 1: is about increasing retirement account contributions. Hey there, man, Joe.

201
00:07:54,600 --> 00:07:56,840
Speaker 3: First off, I want to start by saying how grateful

202
00:07:56,880 --> 00:07:59,560
Speaker 3: I am to discover your podcast. I listen to every

203
00:07:59,600 --> 00:08:02,120
Speaker 3: new EPISO sold as I came across it. My name

204
00:08:02,160 --> 00:08:05,239
Speaker 3: is Heavier, I'm from Gainesville, Florida. My question is about

205
00:08:05,240 --> 00:08:07,400
Speaker 3: my four to one k. Let's say I get a

206
00:08:07,480 --> 00:08:09,280
Speaker 3: race at work and I want to put it into

207
00:08:09,320 --> 00:08:11,240
Speaker 3: my four to one K, but I want to make

208
00:08:11,280 --> 00:08:13,760
Speaker 3: sure I keep my same net income that I take home.

209
00:08:14,400 --> 00:08:16,800
Speaker 3: I figured the four to one K already will automatically

210
00:08:16,920 --> 00:08:19,280
Speaker 3: take out more once the race is applied, because it's

211
00:08:19,280 --> 00:08:22,280
Speaker 3: a percentage of my gross amount. So let's say the

212
00:08:22,360 --> 00:08:24,880
Speaker 3: race is five percent. How much should I increase my

213
00:08:24,920 --> 00:08:26,960
Speaker 3: four oh one K by so that my net income

214
00:08:27,080 --> 00:08:30,720
Speaker 3: is relatively the same after the deduction? Thank you in advance,

215
00:08:30,960 --> 00:08:34,079
Speaker 3: and keep up the good work. Best friends out Javier.

216
00:08:34,400 --> 00:08:36,160
Speaker 2: Okay, so I'm gonna go ahead and make you an

217
00:08:36,160 --> 00:08:37,599
Speaker 2: honorary bestie.

218
00:08:38,000 --> 00:08:39,920
Speaker 1: That's like getting nighted back in the day in England.

219
00:08:40,000 --> 00:08:43,440
Speaker 2: Javier's question here I love because, first off, the fact

220
00:08:43,640 --> 00:08:46,920
Speaker 2: that he isn't just content to leave his investment amount

221
00:08:46,920 --> 00:08:50,480
Speaker 2: static his percentage right, he is increasing what he's putting away,

222
00:08:50,760 --> 00:08:54,080
Speaker 2: which is awesome, like the actual percentage amount, which means

223
00:08:54,080 --> 00:08:58,520
Speaker 2: he is prioritizing future him, which is not as easy

224
00:08:58,559 --> 00:09:00,680
Speaker 2: as it sounds. And I think the best time to

225
00:09:00,720 --> 00:09:03,760
Speaker 2: do that is when you, in fact get a raise heavier. Right,

226
00:09:04,080 --> 00:09:07,720
Speaker 2: You're gonna feel that pinch the strain a whole lot

227
00:09:07,800 --> 00:09:09,880
Speaker 2: less because you might still be able to come away

228
00:09:09,960 --> 00:09:14,000
Speaker 2: with a slightly fatter paycheck. There's a psychological win that's

229
00:09:14,000 --> 00:09:16,320
Speaker 2: happening here, because if you're able to kind of get

230
00:09:16,320 --> 00:09:18,160
Speaker 2: ahead of it a little bit, you haven't even seen

231
00:09:18,960 --> 00:09:21,280
Speaker 2: that fatter paycheck. Let's let's just assume that you're able to,

232
00:09:21,400 --> 00:09:24,040
Speaker 2: like like Javier is trying to do right time perfectly.

233
00:09:24,240 --> 00:09:26,400
Speaker 2: It's not only time it perfectly, but increase the percentage

234
00:09:26,400 --> 00:09:28,120
Speaker 2: in such a way that he truly doesn't see an

235
00:09:28,120 --> 00:09:30,839
Speaker 2: increase in what it is that he's bringing home. You're

236
00:09:30,880 --> 00:09:33,920
Speaker 2: none the wiser, Like you haven't saturdooling yourself. Yes, you're full,

237
00:09:34,080 --> 00:09:35,080
Speaker 2: but in a good way.

238
00:09:35,440 --> 00:09:37,440
Speaker 1: It's like sitting on your hand and then like being like,

239
00:09:37,559 --> 00:09:39,679
Speaker 1: I think I don't have the second hand because it's

240
00:09:39,679 --> 00:09:41,199
Speaker 1: got pins and needles, and eventually it falls all the

241
00:09:41,200 --> 00:09:41,680
Speaker 1: way asleep.

242
00:09:41,720 --> 00:09:45,920
Speaker 2: Right, it's not something I've ever done. I've read a

243
00:09:45,960 --> 00:09:46,560
Speaker 2: regular activity.

244
00:09:46,559 --> 00:09:47,960
Speaker 1: If I sleep on my arm and I wake up,

245
00:09:47,960 --> 00:09:49,360
Speaker 1: it feels like I don't have an arm, you know,

246
00:09:49,800 --> 00:09:50,439
Speaker 1: I feel like I.

247
00:09:50,679 --> 00:09:52,319
Speaker 2: Yeah, my limbs fall asleep less than the used to

248
00:09:52,400 --> 00:09:54,320
Speaker 2: I remember as a kid waking up and just be like,

249
00:09:55,679 --> 00:09:56,800
Speaker 2: because it's kind of painful.

250
00:09:56,920 --> 00:09:59,520
Speaker 1: Yeah, all that being said, just giving a silly way

251
00:09:59,520 --> 00:10:00,560
Speaker 1: of about tricks.

252
00:10:01,120 --> 00:10:04,559
Speaker 2: Javier has not started dreaming about what he's going to

253
00:10:04,640 --> 00:10:07,240
Speaker 2: do with this additional money, which is just a perfect

254
00:10:07,240 --> 00:10:09,000
Speaker 2: time to be able to sock more of it away

255
00:10:09,000 --> 00:10:09,640
Speaker 2: for his future.

256
00:10:09,760 --> 00:10:11,680
Speaker 1: I love that. And by the way, if you have

257
00:10:11,760 --> 00:10:13,360
Speaker 1: a hard time, I think the younger you are, the

258
00:10:13,360 --> 00:10:15,720
Speaker 1: harder it is to identify with future you. Right Like

259
00:10:16,040 --> 00:10:18,880
Speaker 1: in my when I was twenty three, twenty four, Yeah,

260
00:10:18,920 --> 00:10:20,600
Speaker 1: I had started investing in my four O and K,

261
00:10:20,880 --> 00:10:22,679
Speaker 1: but I also like was doing it because I was

262
00:10:22,720 --> 00:10:24,480
Speaker 1: told I was I was supposed to do it, and

263
00:10:24,520 --> 00:10:27,760
Speaker 1: I didn't really have an understanding of like sixty five

264
00:10:27,800 --> 00:10:30,280
Speaker 1: year old Joel, seventy year old Joel using that money.

265
00:10:30,880 --> 00:10:32,600
Speaker 1: That was like the furthest thing from my mind. And

266
00:10:32,640 --> 00:10:34,600
Speaker 1: I do think that that was before the face app

267
00:10:34,640 --> 00:10:36,400
Speaker 1: and you can visualize eighty five year old Joel. And

268
00:10:36,440 --> 00:10:37,440
Speaker 1: that's what I was going to say, is I think

269
00:10:37,440 --> 00:10:39,120
Speaker 1: that can be a helpful tactic, a helpful tool for

270
00:10:39,120 --> 00:10:41,360
Speaker 1: people to do. Take your pictures sticking in the face app.

271
00:10:41,960 --> 00:10:45,000
Speaker 1: Get a visual representation of what you're going to look like,

272
00:10:45,120 --> 00:10:50,040
Speaker 1: or at least this app's representation of what you might

273
00:10:50,040 --> 00:10:52,040
Speaker 1: as the best guest at the very yeah. Yeah, and

274
00:10:52,200 --> 00:10:54,440
Speaker 1: you'll say, oh, that is me with some gray hairs

275
00:10:54,440 --> 00:10:56,800
Speaker 1: and I don't know, some wrinkles and stuff like that.

276
00:10:57,120 --> 00:10:58,840
Speaker 1: I am going to be old. I do think it

277
00:10:58,920 --> 00:11:01,000
Speaker 1: sounds silly, but I do think that that can help

278
00:11:01,240 --> 00:11:05,760
Speaker 1: and actually kind of create maybe that identification, some empathy

279
00:11:05,760 --> 00:11:09,360
Speaker 1: for future you, totally allowing you to actually follow through

280
00:11:09,400 --> 00:11:12,920
Speaker 1: and increase your contribution percentage, and doing that little by

281
00:11:12,960 --> 00:11:15,120
Speaker 1: little over the decades adds up in a big way. Right.

282
00:11:15,520 --> 00:11:17,839
Speaker 1: It can keep your retirement savings headed in the right direction.

283
00:11:17,920 --> 00:11:20,719
Speaker 1: It can help keep lifestyle creep in check. Two, And

284
00:11:20,800 --> 00:11:22,520
Speaker 1: Javier is so right right because he's going to be

285
00:11:22,559 --> 00:11:26,080
Speaker 1: investing more even if he doesn't increase his contribution amount,

286
00:11:26,160 --> 00:11:28,679
Speaker 1: just by the fact that his paycheck's going up right

287
00:11:28,720 --> 00:11:31,800
Speaker 1: the same percentage, but of a higher amount, he's de

288
00:11:31,920 --> 00:11:34,839
Speaker 1: facto investing more. Well, ten percent of one hundred thousand

289
00:11:34,880 --> 00:11:37,240
Speaker 1: dollars is less than ten percent of one hundred and

290
00:11:37,280 --> 00:11:39,080
Speaker 1: five one hundred and ten thousand dollars. We all know that.

291
00:11:39,400 --> 00:11:41,880
Speaker 1: But again, when that raise hits, it is the perfect

292
00:11:41,920 --> 00:11:44,000
Speaker 1: time to invest more. And let's you know, stick with

293
00:11:44,040 --> 00:11:47,160
Speaker 1: the five percent raise scenario that Javier mentioned. The answer

294
00:11:47,240 --> 00:11:50,000
Speaker 1: to this question is going to be more like horseshoes

295
00:11:50,000 --> 00:11:52,360
Speaker 1: and hand grendadsmount. We're going to be in the proximity

296
00:11:52,440 --> 00:11:54,160
Speaker 1: instead of getting it spot on.

297
00:11:54,200 --> 00:11:56,240
Speaker 2: It's probably gonna take some trial and error to kind

298
00:11:56,240 --> 00:11:58,360
Speaker 2: of find that perfect amount exactly.

299
00:11:58,360 --> 00:12:00,880
Speaker 1: It's it's highly unlikely the Javier is going to be

300
00:12:00,880 --> 00:12:03,960
Speaker 1: able to keep the exact same paycheck amount as his

301
00:12:04,040 --> 00:12:07,960
Speaker 1: income and contributions both increase. But I wouldn't think that

302
00:12:07,960 --> 00:12:09,679
Speaker 1: that's a bad thing. I'm just saying you're gonna able

303
00:12:09,679 --> 00:12:10,120
Speaker 1: to get close.

304
00:12:10,280 --> 00:12:12,959
Speaker 2: Yeah, you can't just increase your contribution amount by five

305
00:12:13,000 --> 00:12:15,080
Speaker 2: percent given that five percent raise.

306
00:12:14,960 --> 00:12:16,600
Speaker 1: The numbers are they're just not going to work.

307
00:12:16,800 --> 00:12:19,720
Speaker 2: So for instance, let's say your bi weekly check is

308
00:12:19,760 --> 00:12:24,360
Speaker 2: currently two thousand dollars and you contribute thirteen percent. Well,

309
00:12:24,360 --> 00:12:26,280
Speaker 2: you do the math. That's two hundred and sixty dollars

310
00:12:26,320 --> 00:12:28,280
Speaker 2: that is going into your four to zeroe k every

311
00:12:28,320 --> 00:12:28,840
Speaker 2: two weeks.

312
00:12:29,080 --> 00:12:30,000
Speaker 1: That's totally awesome.

313
00:12:30,200 --> 00:12:32,000
Speaker 2: Then you get that five percent raise, and now your

314
00:12:32,000 --> 00:12:35,400
Speaker 2: biweekly check is up to twenty one hundred dollars. Well,

315
00:12:35,480 --> 00:12:37,800
Speaker 2: now you've got to figure out how to basically get

316
00:12:37,800 --> 00:12:41,960
Speaker 2: back to the seventeen to forty post contribution check amount

317
00:12:42,120 --> 00:12:43,959
Speaker 2: that you were seeing before, and.

318
00:12:43,920 --> 00:12:45,360
Speaker 1: So raising you're getting nerdy with it.

319
00:12:45,440 --> 00:12:48,040
Speaker 2: Do a little bit of math here, Raising your contribution

320
00:12:48,160 --> 00:12:51,400
Speaker 2: percentage up to seventeen percent, well that will net you

321
00:12:52,400 --> 00:12:54,559
Speaker 2: seven hundred and forty three dollars, which is pretty day closed.

322
00:12:54,559 --> 00:12:56,640
Speaker 2: But again it's still not it's not like exactly on

323
00:12:56,640 --> 00:12:58,840
Speaker 2: the dot. But I don't think he's gonna be upset

324
00:12:59,040 --> 00:13:01,520
Speaker 2: about bringing home three additional dollars every two weeks.

325
00:13:01,679 --> 00:13:03,400
Speaker 1: Yes, So basically you're saying, if there was a four

326
00:13:03,640 --> 00:13:05,760
Speaker 1: five percent raise, but a four percent increase in four

327
00:13:05,800 --> 00:13:08,480
Speaker 1: or one k contribution amount, that's what gets you essentially

328
00:13:08,520 --> 00:13:11,520
Speaker 1: the closest, right, And so if you'd invested the full

329
00:13:11,559 --> 00:13:14,200
Speaker 1: five percent of the rays that you're getting, your paycheck

330
00:13:14,240 --> 00:13:16,920
Speaker 1: would of course be smaller. You'd only only have, I think,

331
00:13:17,280 --> 00:13:19,800
Speaker 1: if we ran the numbers, right, oney, seven hundred and

332
00:13:19,880 --> 00:13:22,840
Speaker 1: twenty two dollars every other week. So if you invest

333
00:13:22,880 --> 00:13:24,880
Speaker 1: the full thing, you are going to have less take

334
00:13:24,920 --> 00:13:27,440
Speaker 1: home pay. And that's just a really basic example, right,

335
00:13:27,520 --> 00:13:29,959
Speaker 1: This specific amount is going to vary based on your

336
00:13:29,960 --> 00:13:33,160
Speaker 1: tax rate, your deduction amount, et cetera. But you get

337
00:13:33,160 --> 00:13:33,439
Speaker 1: the gist.

338
00:13:33,520 --> 00:13:35,840
Speaker 2: If he changes his benefits, if he let's say he

339
00:13:36,200 --> 00:13:39,360
Speaker 2: bumps up to a health care plan that includes.

340
00:13:39,000 --> 00:13:39,720
Speaker 1: A higher deductible.

341
00:13:39,800 --> 00:13:41,640
Speaker 2: Okay, well, get it's gonna save them money there, and

342
00:13:41,920 --> 00:13:43,599
Speaker 2: check's gonna then be fatterism.

343
00:13:43,240 --> 00:13:45,679
Speaker 1: Much, Right, But then he's gonna be investing in the HSA,

344
00:13:45,720 --> 00:13:47,000
Speaker 1: and then his paychecks can go down again.

345
00:13:47,080 --> 00:13:47,200
Speaker 2: Right.

346
00:13:47,200 --> 00:13:49,720
Speaker 1: So there's all these variable all these factors you have

347
00:13:49,760 --> 00:13:51,439
Speaker 1: to think about when it comes to your take home

348
00:13:51,440 --> 00:13:54,120
Speaker 1: pay and what's going on with your investments before you

349
00:13:54,120 --> 00:13:56,400
Speaker 1: even see your paycheck. And so I would say this,

350
00:13:56,520 --> 00:13:59,240
Speaker 1: if you're okay with not experiencing much or any of

351
00:13:59,280 --> 00:14:02,760
Speaker 1: your increase in home pay, upping your contribution amount by

352
00:14:02,760 --> 00:14:05,400
Speaker 1: four percent with a five percent raise would be a

353
00:14:05,440 --> 00:14:07,400
Speaker 1: good way to go. That's probably a good rule of

354
00:14:07,400 --> 00:14:09,000
Speaker 1: thumb for other people too, Matt, who want to take

355
00:14:09,000 --> 00:14:12,760
Speaker 1: a similar approach investing eighty percent of e raise. Right,

356
00:14:12,880 --> 00:14:15,680
Speaker 1: our typical advice is to invest fifty percent of you raise.

357
00:14:16,000 --> 00:14:17,920
Speaker 1: We've got no problem with you enjoying a little bit

358
00:14:18,120 --> 00:14:20,880
Speaker 1: of that extra pay, right, especially because guess what, prices

359
00:14:20,960 --> 00:14:23,800
Speaker 1: obviously aren't staying the same. You might want to add

360
00:14:23,840 --> 00:14:25,520
Speaker 1: a little bit of padding to your paycheck to be

361
00:14:25,560 --> 00:14:28,520
Speaker 1: able to continue toward guide services as they cost me absolutely.

362
00:14:28,520 --> 00:14:30,280
Speaker 2: I would highly recommend that because I think there could

363
00:14:30,320 --> 00:14:32,400
Speaker 2: be a temptation. I think for a lot of folks

364
00:14:32,400 --> 00:14:34,480
Speaker 2: out there when they first learn about compounding returns, they

365
00:14:34,560 --> 00:14:36,880
Speaker 2: learn about fire the fire community, and they're like, oh, man,

366
00:14:36,920 --> 00:14:39,560
Speaker 2: someday I'm going to be financially independent, and there is

367
00:14:39,560 --> 00:14:42,640
Speaker 2: a temptation to go full bore and say, oh my god, Okay,

368
00:14:42,640 --> 00:14:45,000
Speaker 2: I'm going to do every ounce of my being. Every

369
00:14:45,000 --> 00:14:47,520
Speaker 2: additional penny I make and or save is going to

370
00:14:47,560 --> 00:14:49,960
Speaker 2: go towards my retirement so that I can retire early.

371
00:14:50,560 --> 00:14:53,960
Speaker 2: But a lot of times those plans aren't really they

372
00:14:54,000 --> 00:14:55,000
Speaker 2: can be not.

373
00:14:55,080 --> 00:14:56,560
Speaker 1: Very realistic, hard to stick to.

374
00:14:56,760 --> 00:14:59,080
Speaker 2: Yeah, and I think there's a chance a if you

375
00:14:59,200 --> 00:15:01,120
Speaker 2: are pushing yoursel off on the earning side of things,

376
00:15:01,160 --> 00:15:03,480
Speaker 2: you could burn yourself out with the amount of hours

377
00:15:03,520 --> 00:15:05,480
Speaker 2: that you're working. But then on the spending side of

378
00:15:05,520 --> 00:15:08,640
Speaker 2: the side of the equation, there might be sacrifices and

379
00:15:08,720 --> 00:15:12,160
Speaker 2: cuts that you're making that could harm your overall person

380
00:15:12,320 --> 00:15:14,880
Speaker 2: in other ways. Like I'm thinking about friendships or community

381
00:15:15,560 --> 00:15:18,960
Speaker 2: literal health. I think about in college, I man, the

382
00:15:19,040 --> 00:15:20,960
Speaker 2: kind of food that I ate, Like I didn't eat.

383
00:15:20,840 --> 00:15:23,080
Speaker 1: Much food, Like you've got some horror stories.

384
00:15:23,520 --> 00:15:25,600
Speaker 2: I remember my parents coming to visit me, and literally

385
00:15:25,600 --> 00:15:27,880
Speaker 2: Mom would show up with meals that were frozen that

386
00:15:27,920 --> 00:15:29,520
Speaker 2: I could stick in the freezer so that I would

387
00:15:29,640 --> 00:15:31,360
Speaker 2: I could pull them out and stick them in the microwave

388
00:15:31,400 --> 00:15:33,240
Speaker 2: and heat them up to eat like a nice, well

389
00:15:33,240 --> 00:15:35,520
Speaker 2: balanced meal because I was eating junk. You thought it

390
00:15:35,560 --> 00:15:37,280
Speaker 2: was just a nice gesture, but she was really worried

391
00:15:37,280 --> 00:15:39,720
Speaker 2: about it. You know. Well, at the time, I thought, oh, Mom,

392
00:15:39,760 --> 00:15:41,200
Speaker 2: I'm fine, it's you know that.

393
00:15:41,360 --> 00:15:42,080
Speaker 1: Thank you so much.

394
00:15:42,120 --> 00:15:43,960
Speaker 2: I love this that you brought me a bunch of

395
00:15:44,080 --> 00:15:44,680
Speaker 2: bunch of meals.

396
00:15:44,680 --> 00:15:45,080
Speaker 1: This is great.

397
00:15:45,120 --> 00:15:46,720
Speaker 2: But I remember thinking at the time like kind of

398
00:15:46,720 --> 00:15:49,680
Speaker 2: dismissing her. But in retrospect, oh my gosh, dude, I

399
00:15:49,720 --> 00:15:52,160
Speaker 2: guess I'm thinking about the full potential that I could

400
00:15:52,160 --> 00:15:54,840
Speaker 2: have been in college and I made decent grades, like

401
00:15:54,880 --> 00:15:57,640
Speaker 2: I graduated, I have, like I graduated cum lad I had.

402
00:15:57,680 --> 00:15:58,920
Speaker 2: You know, I made decent grades and stuff.

403
00:15:59,080 --> 00:15:59,960
Speaker 1: But I believe that's Latin.

404
00:16:00,120 --> 00:16:04,400
Speaker 2: Yes, indeed, sir, literally, But I'm just thinking about how

405
00:16:04,440 --> 00:16:10,200
Speaker 2: this could impact hot and Javier when it comes to

406
00:16:10,240 --> 00:16:14,080
Speaker 2: his earning potential and not just his career, but also

407
00:16:14,240 --> 00:16:15,800
Speaker 2: just other aspects of his life. You don't want to

408
00:16:15,840 --> 00:16:17,640
Speaker 2: cut back too much to the point to where it's

409
00:16:17,720 --> 00:16:20,320
Speaker 2: hurting his overall well being. It's like an instance of

410
00:16:21,200 --> 00:16:23,520
Speaker 2: winning a small battle but losing the overall war.

411
00:16:23,640 --> 00:16:25,280
Speaker 1: One other thing I think we should mention, though, Matt.

412
00:16:25,480 --> 00:16:28,960
Speaker 1: Something else worth considering for Javier is to contribute potentially

413
00:16:29,000 --> 00:16:31,800
Speaker 1: to the ROTH version of his four one K instead

414
00:16:31,840 --> 00:16:36,280
Speaker 1: of contributing to the traditional version. So maybe not even

415
00:16:36,280 --> 00:16:40,400
Speaker 1: increasing your contribution amount this year, but rerouting those contributions

416
00:16:40,400 --> 00:16:42,800
Speaker 1: into the post tax version of your four oh one k,

417
00:16:43,000 --> 00:16:45,040
Speaker 1: because you've already got pre tax money in the four

418
00:16:45,080 --> 00:16:48,480
Speaker 1: one k right now. You would be diversifying your future

419
00:16:48,560 --> 00:16:51,840
Speaker 1: tax exposure, and so the withdrawals are going to be

420
00:16:51,880 --> 00:16:55,480
Speaker 1: more flexible come retirement. And your employer might match your

421
00:16:55,520 --> 00:16:59,400
Speaker 1: ROTH contributions with ROTH dollars two thanks to the Secure

422
00:16:59,400 --> 00:17:02,960
Speaker 1: Act two point so basically they used to match your

423
00:17:03,000 --> 00:17:05,760
Speaker 1: post tax dollars with pre tax ones. You would yes

424
00:17:05,840 --> 00:17:08,280
Speaker 1: be taking on a larger tax burden in the given year.

425
00:17:08,560 --> 00:17:11,840
Speaker 1: Hence the suggestion of not raising your contribution percentage much,

426
00:17:11,880 --> 00:17:14,040
Speaker 1: if any at all in twenty twenty four. But I

427
00:17:14,080 --> 00:17:16,920
Speaker 1: don't know. I think just making this change is worth considering.

428
00:17:16,960 --> 00:17:19,440
Speaker 1: It's going to feel like you're contributing more money because

429
00:17:19,440 --> 00:17:22,840
Speaker 1: you're not getting the same tax breakup front, but ultimately

430
00:17:22,920 --> 00:17:24,520
Speaker 1: it's going to feel like you have more money down

431
00:17:24,520 --> 00:17:26,280
Speaker 1: the road. That's right. Yeah, so haabiya.

432
00:17:26,359 --> 00:17:28,960
Speaker 2: We hope that gets you pointed in the right direction. Joel,

433
00:17:28,960 --> 00:17:30,800
Speaker 2: we got more to get to. We're going to take

434
00:17:30,800 --> 00:17:33,760
Speaker 2: a question from a younger investor who is interested in

435
00:17:33,880 --> 00:17:36,439
Speaker 2: single stock investing, and you might be surprised at the

436
00:17:36,480 --> 00:17:37,240
Speaker 2: answer that we give.

437
00:17:37,359 --> 00:17:47,320
Speaker 1: We'll get to that more right after this. All right, Matt,

438
00:17:47,320 --> 00:17:49,359
Speaker 1: we'll back. We've got more listener questions to get to.

439
00:17:49,680 --> 00:17:53,120
Speaker 1: And yeah, usually we sign the alarm bell when people

440
00:17:53,160 --> 00:17:55,600
Speaker 1: talk about investing in single stocks at least be on

441
00:17:55,640 --> 00:17:58,600
Speaker 1: a certain point. But this listener, she's been listening to

442
00:17:58,680 --> 00:18:00,159
Speaker 1: the show for a while, but she's still wants to

443
00:18:00,200 --> 00:18:00,880
Speaker 1: go down this road.

444
00:18:01,240 --> 00:18:03,560
Speaker 4: Hey, Matt and Joel. This is Anna from out here

445
00:18:03,600 --> 00:18:06,880
Speaker 4: in Oregon. I've really been enjoying listening to your podcast

446
00:18:06,960 --> 00:18:08,879
Speaker 4: for a few months now and I appreciate all the

447
00:18:08,880 --> 00:18:12,280
Speaker 4: great content. So I have a question. I'll start by

448
00:18:12,320 --> 00:18:14,480
Speaker 4: saying that I'm twenty two years old. I have a

449
00:18:14,560 --> 00:18:18,400
Speaker 4: roth Ira, a taxable brokerage account, and an emergency fund

450
00:18:18,480 --> 00:18:21,679
Speaker 4: with almost a year's worth of expenses. I know that

451
00:18:21,720 --> 00:18:24,679
Speaker 4: in the FI community the emphasis towards index funds and

452
00:18:24,720 --> 00:18:27,480
Speaker 4: so on, which is great. I'm wholeheartedly behind that. That's

453
00:18:27,480 --> 00:18:30,719
Speaker 4: what my investments are all in. However, I've also been

454
00:18:30,760 --> 00:18:33,919
Speaker 4: thinking about dabbling in single stocks, not for the money,

455
00:18:34,520 --> 00:18:36,400
Speaker 4: but more just for the thrill. I suppose you could

456
00:18:36,400 --> 00:18:38,840
Speaker 4: say so literally just for the dopamine hit, which is

457
00:18:38,880 --> 00:18:41,080
Speaker 4: really bad. But anyway, if I were to do so

458
00:18:41,520 --> 00:18:44,640
Speaker 4: with small amounts of money, what would you recommend as

459
00:18:44,680 --> 00:18:47,000
Speaker 4: the best way to go about that? Do you think

460
00:18:47,080 --> 00:18:50,400
Speaker 4: should I open a separate broker's account at Vanguard, which

461
00:18:50,480 --> 00:18:52,960
Speaker 4: is where the rest of my investments are. Or I've

462
00:18:52,960 --> 00:18:55,480
Speaker 4: heard good things about m onefinance since they let you

463
00:18:55,520 --> 00:18:58,840
Speaker 4: separate your investments into pieces. I'm just curious what your

464
00:18:58,880 --> 00:18:59,480
Speaker 4: take is on this.

465
00:18:59,560 --> 00:19:00,919
Speaker 1: Thanks Joel.

466
00:19:01,000 --> 00:19:03,119
Speaker 2: You know, my alarm bells went off when I heard

467
00:19:03,240 --> 00:19:06,400
Speaker 2: a twenty two year old investor and she's talking about

468
00:19:06,440 --> 00:19:08,800
Speaker 2: having a wrath, she's talking about having a brokerids the

469
00:19:08,800 --> 00:19:11,520
Speaker 2: good alarm bells, Well not actually, because given how young

470
00:19:11,520 --> 00:19:13,919
Speaker 2: she is. So she's twenty two, that was the exact

471
00:19:13,920 --> 00:19:17,080
Speaker 2: same age when I actually had to draw down on

472
00:19:17,080 --> 00:19:19,920
Speaker 2: some of my retirement accounts because I did not have

473
00:19:20,119 --> 00:19:22,840
Speaker 2: enough money set aside for some life events that I

474
00:19:22,880 --> 00:19:23,399
Speaker 2: had coming out.

475
00:19:23,440 --> 00:19:25,959
Speaker 1: And I'm like you, Anna has prepared even on that front, sir.

476
00:19:26,359 --> 00:19:28,720
Speaker 2: She's got close to a year's worth of living expenses

477
00:19:28,720 --> 00:19:32,199
Speaker 2: and set aside. Holy cow, that is amazing. The fact, like,

478
00:19:32,280 --> 00:19:35,360
Speaker 2: what that tells me is that she is incredibly disciplined.

479
00:19:35,400 --> 00:19:37,639
Speaker 1: I'm wondering when Anna's gonna launch her own personal finance

480
00:19:37,680 --> 00:19:39,280
Speaker 1: podcast because she's got it together.

481
00:19:39,400 --> 00:19:42,520
Speaker 2: Sure you surp us quickly, way more than myself at

482
00:19:42,520 --> 00:19:44,159
Speaker 2: that age, and I'm guessing more than what you had

483
00:19:44,200 --> 00:19:47,159
Speaker 2: going on, more than me like last year at that age.

484
00:19:47,760 --> 00:19:49,800
Speaker 2: It's just so impressive. I'm like, I want to harp

485
00:19:49,800 --> 00:19:51,639
Speaker 2: on this for a minute longer here because of the

486
00:19:51,680 --> 00:19:55,679
Speaker 2: fact that it's sitting there as cash in her savings account.

487
00:19:55,720 --> 00:19:57,639
Speaker 2: It's one thing if you have a large amount of

488
00:19:57,640 --> 00:19:59,879
Speaker 2: money set aside in a retirement account because maybe you

489
00:19:59,880 --> 00:20:03,680
Speaker 2: have uh an employer and it was automatically deducted from

490
00:20:03,720 --> 00:20:06,000
Speaker 2: your paycheck every month. That's not the case here. This

491
00:20:06,040 --> 00:20:08,840
Speaker 2: is money that she has socked aside, which means she

492
00:20:08,920 --> 00:20:11,520
Speaker 2: didn't assuming she went to college, she didn't blow it

493
00:20:11,840 --> 00:20:14,280
Speaker 2: on partying or going out, so she didn't blow it

494
00:20:14,359 --> 00:20:16,880
Speaker 2: on a sweet ride or you know, she didn't spend

495
00:20:16,920 --> 00:20:22,160
Speaker 2: it on a worldwide vacation with her friends to celebrate

496
00:20:22,160 --> 00:20:24,120
Speaker 2: graduating or something like that. Right, Like, this is money

497
00:20:24,119 --> 00:20:26,840
Speaker 2: that she has left in there, and she's just like, Nope,

498
00:20:27,040 --> 00:20:29,159
Speaker 2: this is money I'm not gonna touch that. That's gonna

499
00:20:29,280 --> 00:20:31,359
Speaker 2: allow me to have some financial breathing room. That's just

500
00:20:31,760 --> 00:20:34,320
Speaker 2: incredibly impressive, especially for someone at this age.

501
00:20:34,400 --> 00:20:38,480
Speaker 1: Yeah, setting herself up for massive future success as potentially

502
00:20:38,480 --> 00:20:42,040
Speaker 1: that coast fire plan. Right, it just get going going

503
00:20:42,080 --> 00:20:45,239
Speaker 1: hard for a decade and a half, maybe two, and

504
00:20:45,280 --> 00:20:48,119
Speaker 1: then not really having to be super thoughtful about your

505
00:20:48,119 --> 00:20:49,879
Speaker 1: investments from that point be foward because you've done so

506
00:20:49,960 --> 00:20:51,160
Speaker 1: much of the heavy lifting up front.

507
00:20:51,240 --> 00:20:53,879
Speaker 2: Yeah, Well, and specifically having the liquid cash on hand, Like,

508
00:20:53,920 --> 00:20:55,719
Speaker 2: it's just it's gonna make her in the next ten

509
00:20:55,800 --> 00:20:59,480
Speaker 2: years incredibly resilient to not have to deviate from any

510
00:20:59,520 --> 00:21:01,480
Speaker 2: sort of finance she'll plan because she will continue to

511
00:21:01,560 --> 00:21:04,760
Speaker 2: invest with like clockwork. Because she's not going to have

512
00:21:04,760 --> 00:21:06,680
Speaker 2: to interrupt anything, She's going to be able to pot

513
00:21:06,800 --> 00:21:09,000
Speaker 2: most likely achieve a lot of the different financial goals

514
00:21:09,000 --> 00:21:09,560
Speaker 2: that she's got what it is.

515
00:21:09,640 --> 00:21:11,560
Speaker 1: Set aside. First, as you and I know, the more

516
00:21:11,600 --> 00:21:15,520
Speaker 1: cash you have stacked up in an account, a liquid account.

517
00:21:15,600 --> 00:21:19,200
Speaker 1: Not that like, not that you're avoiding investing for your future,

518
00:21:19,320 --> 00:21:21,639
Speaker 1: because she's obviously not, but it gives you more options

519
00:21:21,640 --> 00:21:23,160
Speaker 1: in the here and now. So let's say Anna says,

520
00:21:23,359 --> 00:21:26,760
Speaker 1: this job not so great, man, I really want to

521
00:21:26,760 --> 00:21:28,840
Speaker 1: pivot into this career. Well, she set herself up for

522
00:21:28,880 --> 00:21:32,080
Speaker 1: that opportunity. And the toughest stories we hear oftentimes from

523
00:21:32,119 --> 00:21:35,080
Speaker 1: people who lost a job, didn't have much cash rely on.

524
00:21:35,280 --> 00:21:38,439
Speaker 1: They ended up in a job they didn't want to do.

525
00:21:38,119 --> 00:21:40,760
Speaker 1: They wasn't their pick of the litter, and so much

526
00:21:40,800 --> 00:21:42,959
Speaker 1: of the reason for that was because they didn't have

527
00:21:43,040 --> 00:21:45,720
Speaker 1: almost any savings on hand. They couldn't withstand a couple

528
00:21:45,800 --> 00:21:46,679
Speaker 1: months of unemployment.

529
00:21:46,760 --> 00:21:46,920
Speaker 2: Yep.

530
00:21:46,960 --> 00:21:50,280
Speaker 1: And that is the story of the average American. Anna

531
00:21:50,320 --> 00:21:51,520
Speaker 1: is not going to be living that story, which is

532
00:21:51,560 --> 00:21:54,880
Speaker 1: awesome exactly. Let's talk about single stock investing, because as

533
00:21:54,920 --> 00:21:57,480
Speaker 1: long as it's contained right and you're doing the boring

534
00:21:57,480 --> 00:21:59,920
Speaker 1: stuff with the bulk of your investment dollars, I don't

535
00:22:00,000 --> 00:22:02,639
Speaker 1: don't really see any issue here. This is something we've

536
00:22:02,840 --> 00:22:05,760
Speaker 1: kind of talked about on the show before. How sole

537
00:22:05,800 --> 00:22:08,439
Speaker 1: like that Anna knows the reason she wants to do this.

538
00:22:09,160 --> 00:22:11,320
Speaker 1: I'm doing it for the dopamine hit. I appreciate the honesty,

539
00:22:11,359 --> 00:22:13,080
Speaker 1: a little bit of a rush, and I get that.

540
00:22:13,160 --> 00:22:15,399
Speaker 1: I get that. I think there are lessons that we

541
00:22:15,480 --> 00:22:18,560
Speaker 1: can learn from single stock investing, as long as it is,

542
00:22:18,600 --> 00:22:20,879
Speaker 1: like I said, kind of contained in Firewalled. Makes me

543
00:22:20,880 --> 00:22:23,560
Speaker 1: think of gambling, right, because it can, of course become

544
00:22:23,560 --> 00:22:26,679
Speaker 1: a real problem. There's more of an ability for gambling

545
00:22:26,760 --> 00:22:28,560
Speaker 1: to get out of control when it's set your fingertips

546
00:22:28,600 --> 00:22:30,880
Speaker 1: on the smartphone. I feel like that is very much

547
00:22:30,920 --> 00:22:33,600
Speaker 1: the case in our society right now. You can gamble

548
00:22:33,680 --> 00:22:35,800
Speaker 1: on almost everything at any time of the day. Right,

549
00:22:35,800 --> 00:22:37,200
Speaker 1: you can wake up with night sweats and bet on

550
00:22:37,240 --> 00:22:40,840
Speaker 1: your favorite sports team. Or SAME's true with trading single stocks. Right,

551
00:22:40,880 --> 00:22:43,119
Speaker 1: you can have a nightmare, wake up, start trading and

552
00:22:43,200 --> 00:22:45,600
Speaker 1: Vidia until your heart's content. The trade might not settle

553
00:22:45,640 --> 00:22:48,040
Speaker 1: to the morning, but it might settle before then, depending

554
00:22:48,080 --> 00:22:49,280
Speaker 1: on which app you're using.

555
00:22:49,320 --> 00:22:51,760
Speaker 2: You could have a dream about microchip processing.

556
00:22:51,840 --> 00:22:52,000
Speaker 4: Right.

557
00:22:52,160 --> 00:22:54,240
Speaker 2: You might say that like, oh, it was a sign,

558
00:22:54,640 --> 00:22:56,720
Speaker 2: But you know what, I'm fine with that as long

559
00:22:57,080 --> 00:22:59,560
Speaker 2: as long as you keep it contained within this like

560
00:22:59,560 --> 00:23:01,919
Speaker 2: fire little box of a broken to account that you're

561
00:23:01,920 --> 00:23:02,399
Speaker 2: gonna set up.

562
00:23:02,440 --> 00:23:03,840
Speaker 1: Emily was talking to me the other day about the

563
00:23:03,880 --> 00:23:06,399
Speaker 1: difference between dreams and visions. I still don't know if

564
00:23:06,400 --> 00:23:08,720
Speaker 1: I know the difference after that conversation. But maybe you

565
00:23:08,720 --> 00:23:10,760
Speaker 1: think it's a vision, right that you saw in the middle,

566
00:23:10,960 --> 00:23:13,600
Speaker 1: or it was just like indigestion based on something you ate,

567
00:23:13,680 --> 00:23:16,080
Speaker 1: And it's hard to interpret the difference in the middle

568
00:23:16,119 --> 00:23:18,679
Speaker 1: of that act, I guess, But like with twenty four

569
00:23:18,680 --> 00:23:21,439
Speaker 1: to seven trading catching on, you might find yourself in

570
00:23:21,440 --> 00:23:24,160
Speaker 1: that position, right, So constraints are key. Also, make sure

571
00:23:24,160 --> 00:23:26,359
Speaker 1: you aren't putting money on the line that would cause

572
00:23:26,359 --> 00:23:28,600
Speaker 1: you to lose sleep at night. So the same is

573
00:23:28,600 --> 00:23:30,840
Speaker 1: true with gambling. Right, If losing more than four hundred

574
00:23:30,840 --> 00:23:33,159
Speaker 1: bucks the craps table in a weekend Vegas trip is

575
00:23:33,200 --> 00:23:36,199
Speaker 1: your number, stick to that number. There's nothing wrong with

576
00:23:36,200 --> 00:23:38,240
Speaker 1: that if you consider that part of your entertainment budget.

577
00:23:38,320 --> 00:23:40,560
Speaker 1: So the same is true with individual stock investing that

578
00:23:40,600 --> 00:23:43,200
Speaker 1: you're planning on doing. We suggest a maximum of five

579
00:23:43,240 --> 00:23:46,480
Speaker 1: percent of your overall investment portfolio. That's the most you

580
00:23:46,520 --> 00:23:48,879
Speaker 1: want to put into single stocks. But the truth is

581
00:23:49,359 --> 00:23:52,800
Speaker 1: maybe that threshold is smaller for you because if you

582
00:23:52,880 --> 00:23:55,200
Speaker 1: were to see a massive decline in a single stock,

583
00:23:55,400 --> 00:23:57,760
Speaker 1: think about something like CrowdStrike Matt that was that was

584
00:23:57,760 --> 00:23:59,520
Speaker 1: a stock a lot of people were talking about, and

585
00:23:59,520 --> 00:24:03,399
Speaker 1: then crowd Strike experiences that significant outage that hamstrung a

586
00:24:03,480 --> 00:24:07,080
Speaker 1: bunch of really prominent businesses. Their stock goes plummeting. If

587
00:24:07,080 --> 00:24:09,359
Speaker 1: that was the stock you were interested in and you

588
00:24:09,560 --> 00:24:11,480
Speaker 1: sunk a lot of money into, is it going to

589
00:24:11,520 --> 00:24:13,280
Speaker 1: freak you out when that happens. I would just run

590
00:24:13,320 --> 00:24:15,600
Speaker 1: through a few scenarios like that before I actually started

591
00:24:15,600 --> 00:24:16,760
Speaker 1: making those specific investment.

592
00:24:16,800 --> 00:24:19,399
Speaker 2: That's right. Let's get to the heart of Anna's question,

593
00:24:19,480 --> 00:24:22,639
Speaker 2: which is where do I actually open this account? I

594
00:24:22,680 --> 00:24:24,800
Speaker 2: will say I like the idea of keeping it separate,

595
00:24:24,800 --> 00:24:29,440
Speaker 2: although it's not crucial or completely necessary, especially given Anna's

596
00:24:29,480 --> 00:24:33,200
Speaker 2: discipline I think, and her ability ability to mentally sort

597
00:24:33,200 --> 00:24:36,520
Speaker 2: of silo and partition off her own money. But that

598
00:24:36,600 --> 00:24:40,000
Speaker 2: being said, having it in an entirely different brokerage account,

599
00:24:40,400 --> 00:24:43,480
Speaker 2: I think can act as a firewall of sorts. And

600
00:24:43,680 --> 00:24:46,400
Speaker 2: if the majority of her long haul investments, let's say

601
00:24:46,400 --> 00:24:48,240
Speaker 2: they're you know, with one of the major low cost

602
00:24:48,280 --> 00:24:51,800
Speaker 2: brokerages in Vanguard in this case, Well, you could certainly

603
00:24:51,800 --> 00:24:54,639
Speaker 2: do your single stock investing there as well, but I

604
00:24:54,640 --> 00:24:56,600
Speaker 2: think it just makes sense to have a separate account

605
00:24:56,680 --> 00:24:59,400
Speaker 2: so that you aren't tempted to co mingle this funds.

606
00:24:59,560 --> 00:25:01,600
Speaker 2: And what's really interesting is the fact that she said

607
00:25:01,600 --> 00:25:04,040
Speaker 2: at the beginning, like in her question, that she already

608
00:25:04,119 --> 00:25:06,480
Speaker 2: she has a brokerage account, which tells me she's already

609
00:25:06,560 --> 00:25:08,480
Speaker 2: she's doing like some medium term investing, because if she

610
00:25:08,520 --> 00:25:10,680
Speaker 2: already has a brokege account, I think what she's trying

611
00:25:10,680 --> 00:25:13,639
Speaker 2: to figure out how to do is to keep some

612
00:25:13,800 --> 00:25:18,040
Speaker 2: of her dopamine single stock trading that she reads about

613
00:25:18,040 --> 00:25:19,760
Speaker 2: a company and thinks, oh, that company is going to

614
00:25:19,760 --> 00:25:22,040
Speaker 2: go to the moon from bleeding over from that mixing

615
00:25:22,080 --> 00:25:25,200
Speaker 2: in with let's say where she's investing money that she's

616
00:25:25,240 --> 00:25:27,679
Speaker 2: planning on saving up and putting down for a down

617
00:25:27,760 --> 00:25:29,919
Speaker 2: payment for a house in seven years or something like

618
00:25:29,920 --> 00:25:32,240
Speaker 2: that after she's out of grad school and is in

619
00:25:32,320 --> 00:25:35,480
Speaker 2: a new city for the next decade or something like that.

620
00:25:35,840 --> 00:25:38,320
Speaker 2: And she specifically mentioned m one, which I think might

621
00:25:38,359 --> 00:25:41,879
Speaker 2: be a decent option, but personally I use Robinhood, and

622
00:25:41,960 --> 00:25:44,440
Speaker 2: it's specifically because of how easy that they have made

623
00:25:44,480 --> 00:25:48,120
Speaker 2: it and that is where I do five percent or

624
00:25:48,400 --> 00:25:51,119
Speaker 2: this much less of my overall portfolio is in single

625
00:25:51,119 --> 00:25:53,399
Speaker 2: stocks and or that's what you say, is the max,

626
00:25:53,480 --> 00:25:56,639
Speaker 2: not like the goal, right exactly. Yeah, nobody out there

627
00:25:56,640 --> 00:25:58,440
Speaker 2: should hear five percent and think, oh no, I need

628
00:25:58,440 --> 00:26:01,159
Speaker 2: to diversify and get more single stocks and crypto that

629
00:26:01,240 --> 00:26:01,600
Speaker 2: kind of thing.

630
00:26:01,840 --> 00:26:03,639
Speaker 1: But like that's just why asking Most people don't need

631
00:26:03,680 --> 00:26:04,840
Speaker 1: to do it unless they feel the urge.

632
00:26:04,920 --> 00:26:06,960
Speaker 2: Yeah, unless you find it interesting. But like, for instance,

633
00:26:07,320 --> 00:26:09,480
Speaker 2: like that's where I was gonna mention. I looked up

634
00:26:09,720 --> 00:26:13,639
Speaker 2: the manufacture of these different bags that you lock your

635
00:26:13,640 --> 00:26:15,800
Speaker 2: phone into, because there's more and more schools that are

636
00:26:15,960 --> 00:26:19,560
Speaker 2: implementing cell phone banks basically right, And I started thinking.

637
00:26:19,560 --> 00:26:22,760
Speaker 2: I was like, man, the demand for these bags. I

638
00:26:22,760 --> 00:26:24,600
Speaker 2: think there's that many manufacturers, And so I looked it

639
00:26:24,640 --> 00:26:27,120
Speaker 2: up because I'm thinking, Okay, you got one school. That's

640
00:26:27,119 --> 00:26:28,719
Speaker 2: a ton of bags that one school is going to need.

641
00:26:28,760 --> 00:26:31,560
Speaker 2: But typically you're looking at entire school districts that are

642
00:26:31,560 --> 00:26:35,160
Speaker 2: implementing this, or counties, which means you multiply that across

643
00:26:35,359 --> 00:26:38,600
Speaker 2: multiple schools and then across cities and states. I'm like, holy,

644
00:26:39,080 --> 00:26:41,239
Speaker 2: there's a really big opportunity.

645
00:26:40,680 --> 00:26:42,320
Speaker 1: Here, especially in the city of la that's a big

646
00:26:42,400 --> 00:26:43,120
Speaker 1: leading in the case.

647
00:26:43,320 --> 00:26:46,000
Speaker 2: Yeah, the unified school district over there, and so the

648
00:26:46,280 --> 00:26:48,040
Speaker 2: one that they're talking about in this new story was

649
00:26:48,160 --> 00:26:51,080
Speaker 2: privately owned. So that was an instance where and that's

650
00:26:51,440 --> 00:26:52,800
Speaker 2: what I would have done, is I probably would have

651
00:26:52,840 --> 00:26:55,080
Speaker 2: gone there and purchased like one stock, like if it

652
00:26:55,119 --> 00:26:57,399
Speaker 2: was sixty bucks or something like that, which is not

653
00:26:58,040 --> 00:27:00,240
Speaker 2: a dollar amount that I'm going to lose sleepover if

654
00:27:00,240 --> 00:27:01,840
Speaker 2: that completely goes as belly up.

655
00:27:01,840 --> 00:27:03,320
Speaker 1: You're also not going to get rich if it goes

656
00:27:03,320 --> 00:27:05,640
Speaker 1: to the moon because you bought one share, right, sure,

657
00:27:05,960 --> 00:27:07,880
Speaker 1: but I don't think you can go wrong with either

658
00:27:07,920 --> 00:27:10,640
Speaker 1: one in one or robin Hood. You mentioned being interacted

659
00:27:10,680 --> 00:27:13,120
Speaker 1: to in one, so it makes sense to start there.

660
00:27:13,359 --> 00:27:15,960
Speaker 1: They seem to put less focus on the pomp and circumstance,

661
00:27:16,040 --> 00:27:18,960
Speaker 1: which we generally see is a good thing. The pie

662
00:27:19,000 --> 00:27:20,480
Speaker 1: set up also makes a lot of sense for me.

663
00:27:20,480 --> 00:27:21,480
Speaker 1: In in one it.

664
00:27:21,400 --> 00:27:23,800
Speaker 2: Makes sense I think for like an overall portfolio, but

665
00:27:23,840 --> 00:27:26,119
Speaker 2: I think if you're looking at single stock investing.

666
00:27:25,960 --> 00:27:27,120
Speaker 1: Robinhood makes it.

667
00:27:27,119 --> 00:27:29,199
Speaker 2: It has a better interface, Yeah, yeah, because it's like

668
00:27:29,240 --> 00:27:32,879
Speaker 2: you're not necessarily looking for that like well balanced, you know,

669
00:27:32,920 --> 00:27:36,960
Speaker 2: overall allocated portfolio, that nice pie. It's more about just

670
00:27:37,040 --> 00:27:39,200
Speaker 2: kind of getting in there, getting that single stock. Who's

671
00:27:39,240 --> 00:27:42,359
Speaker 2: making it easy for you to kind of make your tiny,

672
00:27:42,480 --> 00:27:44,080
Speaker 2: very small, low dollar gambles.

673
00:27:44,119 --> 00:27:47,680
Speaker 1: And that Robinhood interface is fantastic. We've talked about the

674
00:27:47,760 --> 00:27:50,960
Speaker 1: downsides of that interface, specifically for people who don't want

675
00:27:50,960 --> 00:27:52,080
Speaker 1: to be and shouldn't be trading.

676
00:27:52,119 --> 00:27:54,520
Speaker 2: Hey are less discipline yea, And who are.

677
00:27:54,440 --> 00:27:56,720
Speaker 1: Supposed to be wanting to invest in index funds, in

678
00:27:56,760 --> 00:27:59,000
Speaker 1: a roth Ira or something like that, Well, that could

679
00:27:59,040 --> 00:28:01,760
Speaker 1: be detrimental. But if this is just the relief account

680
00:28:01,760 --> 00:28:04,320
Speaker 1: where you're sticking money that's only going into single stocks,

681
00:28:04,440 --> 00:28:07,280
Speaker 1: I think that's probably a good choice. Something else worth mentioning.

682
00:28:07,359 --> 00:28:10,280
Speaker 1: Don't forget it about the tax bill and the paperwork

683
00:28:10,440 --> 00:28:13,600
Speaker 1: that's associated with some of this extra trading you might

684
00:28:13,640 --> 00:28:16,439
Speaker 1: be doing. If you're day trading, like if you're making

685
00:28:16,800 --> 00:28:20,159
Speaker 1: trades often, yeah, at most days, like a lot of

686
00:28:20,240 --> 00:28:20,720
Speaker 1: days a week.

687
00:28:20,920 --> 00:28:23,440
Speaker 2: Learns back in twenty twenty, Yes, when all the meme

688
00:28:23,480 --> 00:28:24,399
Speaker 2: stocks are blown.

689
00:28:24,160 --> 00:28:25,679
Speaker 1: Up, there's nothing else to do but sit on your

690
00:28:25,720 --> 00:28:28,600
Speaker 1: computer and trade stocks. I guess you could find that

691
00:28:28,640 --> 00:28:31,600
Speaker 1: your attraction to single stocks makes for a miserable March

692
00:28:31,640 --> 00:28:34,439
Speaker 1: in April, So go ahead and dabble, but making fewer

693
00:28:34,480 --> 00:28:37,600
Speaker 1: trades and having a longer timeline is still a superior approach,

694
00:28:37,920 --> 00:28:41,520
Speaker 1: even if you're investing in individual stocks. So if you

695
00:28:41,560 --> 00:28:44,120
Speaker 1: invest in a company that you believe in, buying one

696
00:28:44,160 --> 00:28:47,280
Speaker 1: week selling the next doesn't necessarily make a lot of sense,

697
00:28:47,360 --> 00:28:50,000
Speaker 1: then you're trading based on like CNBC talking heads and

698
00:28:50,080 --> 00:28:52,280
Speaker 1: less on fundamentals of what a company's got going on.

699
00:28:52,600 --> 00:28:54,600
Speaker 1: But some folks believe, and I can totally see how

700
00:28:54,640 --> 00:28:57,480
Speaker 1: that's true that having this separate account can act as

701
00:28:57,520 --> 00:28:59,640
Speaker 1: this pressure release valve. It allows you to stay the

702
00:28:59,680 --> 00:29:02,680
Speaker 1: course in your other accounts over the long haul. And

703
00:29:02,760 --> 00:29:04,080
Speaker 1: I do think it's going to be the case for

704
00:29:04,160 --> 00:29:06,600
Speaker 1: somebody like Anna who wants some of the actions, some

705
00:29:06,600 --> 00:29:08,360
Speaker 1: of the fun. I think it's a learning experience too.

706
00:29:08,400 --> 00:29:10,840
Speaker 1: It really can be investing in single stocks and then saying,

707
00:29:10,880 --> 00:29:13,200
Speaker 1: wait a second, my next ones are going up, my

708
00:29:13,240 --> 00:29:15,920
Speaker 1: single stock portfolio is going out poorly, my Robinhood account

709
00:29:15,960 --> 00:29:18,360
Speaker 1: is doing It can reinforce I think for most people

710
00:29:18,400 --> 00:29:21,280
Speaker 1: it does. I guess for the I would call them

711
00:29:21,360 --> 00:29:24,240
Speaker 1: unfortunate people who end up performing better over those first

712
00:29:24,240 --> 00:29:26,760
Speaker 1: six months of single stock investing. It could lead to

713
00:29:26,800 --> 00:29:29,920
Speaker 1: the opposite, and that's right reinforcement. But I love this

714
00:29:30,000 --> 00:29:32,480
Speaker 1: idea of giving it a try with a small portion,

715
00:29:32,760 --> 00:29:35,240
Speaker 1: especially when you're so buttoned up in every other area

716
00:29:35,240 --> 00:29:36,240
Speaker 1: of your personal finances.

717
00:29:36,320 --> 00:29:38,720
Speaker 2: Totally agree, and then not to mention too. If you

718
00:29:38,840 --> 00:29:41,400
Speaker 2: like the interface and you are disciplined, Robin has got

719
00:29:41,440 --> 00:29:43,400
Speaker 2: the match as well, and so you might find yourself

720
00:29:43,560 --> 00:29:47,240
Speaker 2: now migrating your roth Ira over there as well. Again,

721
00:29:47,360 --> 00:29:50,600
Speaker 2: if you can stay incredibly disciplined and keep that money partitioned. Jill,

722
00:29:50,680 --> 00:29:52,240
Speaker 2: let's get to our next question. This is from a

723
00:29:52,280 --> 00:29:54,920
Speaker 2: listener who based on her question, it sounds like she

724
00:29:55,000 --> 00:29:57,719
Speaker 2: might be with one of the big banks. Let's hear

725
00:29:57,760 --> 00:29:59,080
Speaker 2: a question about CDs.

726
00:29:59,600 --> 00:30:03,040
Speaker 5: This is in the from California. Last year, I put

727
00:30:03,160 --> 00:30:08,000
Speaker 5: seventy five thousand dollars into a CD for eleven months.

728
00:30:08,400 --> 00:30:11,680
Speaker 5: The maturity date is coming up, and I don't know

729
00:30:11,760 --> 00:30:15,479
Speaker 5: what to do. I usually let it roll over. The

730
00:30:15,520 --> 00:30:20,080
Speaker 5: bank letter says the current interest rates are zero point

731
00:30:20,280 --> 00:30:25,400
Speaker 5: zero five percent and zero point two five percent, not

732
00:30:25,640 --> 00:30:28,400
Speaker 5: very good. If you could tell me what to do,

733
00:30:28,600 --> 00:30:29,840
Speaker 5: I'd appreciate it.

734
00:30:30,040 --> 00:30:32,760
Speaker 2: Oh, Joel, So she mentioned receiving mail from her bank.

735
00:30:32,800 --> 00:30:34,800
Speaker 2: I think that's one of the big giveaways that she

736
00:30:34,880 --> 00:30:36,880
Speaker 2: might be with one of the big banks, aside from

737
00:30:36,920 --> 00:30:39,160
Speaker 2: the fact that the rate seems fairly crummy.

738
00:30:39,240 --> 00:30:40,200
Speaker 1: I think that's probably true.

739
00:30:40,280 --> 00:30:41,920
Speaker 2: It was the last time you received something in the

740
00:30:41,920 --> 00:30:43,440
Speaker 2: mail from your online bank.

741
00:30:43,520 --> 00:30:46,760
Speaker 1: Yeah, I don't really, but I get mail from the

742
00:30:46,760 --> 00:30:48,760
Speaker 1: big banks more than I do from banks. I actually do.

743
00:30:48,760 --> 00:30:49,960
Speaker 2: Businesses as they're trying to win you.

744
00:30:50,120 --> 00:30:53,000
Speaker 1: Yes, yeah, like Wells Fargo and Chase, like Box all

745
00:30:53,040 --> 00:30:54,080
Speaker 1: the time. Evidently works.

746
00:30:54,080 --> 00:30:57,240
Speaker 2: I mean, they wouldn't continue to send you mailers if

747
00:30:57,400 --> 00:31:00,000
Speaker 2: there's not a certain percentage of folks who are saying, oh, yeah,

748
00:31:00,000 --> 00:31:01,280
Speaker 2: maybe I will open an account with them.

749
00:31:01,320 --> 00:31:03,320
Speaker 1: Hasn't worked for me, and it won't work. Keep trying,

750
00:31:03,440 --> 00:31:06,120
Speaker 1: keep wasting your money. And you think you're so disappointed

751
00:31:07,080 --> 00:31:09,720
Speaker 1: at least on that front. Well, Linda, we love that

752
00:31:09,760 --> 00:31:12,880
Speaker 1: you took advantage of those high rates when they were available,

753
00:31:12,960 --> 00:31:16,360
Speaker 1: and CD rates have been epic After something like ten

754
00:31:16,400 --> 00:31:18,840
Speaker 1: plus years of utter worthlessness amount we did not talk

755
00:31:18,880 --> 00:31:21,680
Speaker 1: about CD rates at all in the first few years

756
00:31:21,720 --> 00:31:24,200
Speaker 1: of this podcast. There was no reason too. There was

757
00:31:24,200 --> 00:31:27,680
Speaker 1: no reason to talk about CDs, like what benefit did

758
00:31:27,760 --> 00:31:31,720
Speaker 1: they offer to people? In twenty eighteen, twenty nineteen, nothing

759
00:31:32,160 --> 00:31:36,440
Speaker 1: very little bit. They were essentially a failed savings account.

760
00:31:36,560 --> 00:31:38,120
Speaker 2: But as you imagine, if you worked in the ceded

761
00:31:38,160 --> 00:31:41,440
Speaker 2: department back in like twenty fifteen, you.

762
00:31:41,480 --> 00:31:43,440
Speaker 1: Just like toil in your thumb. So folks to be like, wait,

763
00:31:43,480 --> 00:31:46,680
Speaker 1: what you had nothing going on? You're playing wordle except

764
00:31:46,680 --> 00:31:49,720
Speaker 1: for it didn't even exist. That neither mine sweeper perhaps right,

765
00:31:49,760 --> 00:31:53,560
Speaker 1: But as the Fed raised rates, savers have benefited, and

766
00:31:53,920 --> 00:31:57,680
Speaker 1: as the potential for rate cuts looms larger, locking in

767
00:31:57,800 --> 00:32:00,480
Speaker 1: higher rates could be a smart strategy. So it's one

768
00:32:00,480 --> 00:32:02,760
Speaker 1: of those things where CD rates, Yeah, they vaulted up

769
00:32:02,760 --> 00:32:05,560
Speaker 1: alongside the rates of high yield savings accounts, and they

770
00:32:05,600 --> 00:32:08,480
Speaker 1: were exceeding the rates that a lot of high yeld

771
00:32:08,520 --> 00:32:11,080
Speaker 1: savings accounts were offering. That doesn't seem to be the

772
00:32:11,080 --> 00:32:13,360
Speaker 1: case right now, but the play is to be able

773
00:32:13,360 --> 00:32:15,800
Speaker 1: to lock in the rate for longer with the at

774
00:32:15,880 --> 00:32:18,760
Speaker 1: least belief the rates are going down from here on out.

775
00:32:18,840 --> 00:32:21,160
Speaker 2: Yeah, but step one, you definitely don't want to keep

776
00:32:21,240 --> 00:32:23,960
Speaker 2: sticking around with the bank that you're currently with because

777
00:32:23,960 --> 00:32:26,120
Speaker 2: I'm not sure what sort of rate that you were

778
00:32:26,120 --> 00:32:28,160
Speaker 2: getting before. It sounds like it was fairly decent, and

779
00:32:28,200 --> 00:32:30,800
Speaker 2: you're not really impressed with what they're saying that it's

780
00:32:30,840 --> 00:32:33,760
Speaker 2: going to renew at But bottom line, these rates just

781
00:32:33,800 --> 00:32:36,280
Speaker 2: are not competitive at all. Wow, what does she say

782
00:32:36,320 --> 00:32:39,120
Speaker 2: she was being offered point like point zero four or

783
00:32:39,160 --> 00:32:39,600
Speaker 2: something like.

784
00:32:39,520 --> 00:32:41,760
Speaker 1: That, point two. It was awful, It was awful. Whatever

785
00:32:41,800 --> 00:32:43,320
Speaker 1: she said in the question, it was awful, was terrible.

786
00:32:43,360 --> 00:32:44,920
Speaker 1: And that's another sign that this is probably a big

787
00:32:44,960 --> 00:32:48,200
Speaker 1: bank because the rates are not competitive in the least.

788
00:32:48,240 --> 00:32:50,600
Speaker 2: Yeah, they're just pretending that they're. Yeah, they're basically stuck

789
00:32:50,600 --> 00:32:52,960
Speaker 2: in twenty eighteen. And so we would suggest checking out

790
00:32:53,000 --> 00:32:56,280
Speaker 2: a site like doctor of Credit dot com, and they

791
00:32:56,280 --> 00:32:57,840
Speaker 2: are they're going to have a current list of the

792
00:32:57,840 --> 00:33:00,720
Speaker 2: best rates that are being offered on c out there

793
00:33:00,760 --> 00:33:02,800
Speaker 2: by all the different banks. They've got nice little tables

794
00:33:02,800 --> 00:33:07,880
Speaker 2: and these are articles that they update monthly. Ally bank.

795
00:33:07,960 --> 00:33:10,160
Speaker 2: They are a great place to turn, although you might

796
00:33:10,160 --> 00:33:12,080
Speaker 2: be able to eat out higher rates elsewhere.

797
00:33:12,240 --> 00:33:14,120
Speaker 1: Ally's in the top of the pack, but they're not

798
00:33:14,200 --> 00:33:16,880
Speaker 1: usually at the very forefront exactly like I mean, I

799
00:33:16,920 --> 00:33:19,720
Speaker 1: personally use ally and it's just because like everything that

800
00:33:19,760 --> 00:33:21,840
Speaker 1: they offer, like the site is great, the app works

801
00:33:21,880 --> 00:33:22,360
Speaker 1: really well.

802
00:33:22,400 --> 00:33:25,520
Speaker 2: They're always offering some of the most competitive rates, but

803
00:33:25,520 --> 00:33:28,560
Speaker 2: they're not at the cutting edge of the best rates

804
00:33:28,600 --> 00:33:30,160
Speaker 2: that are out there. They're like top five percent, not

805
00:33:30,200 --> 00:33:32,480
Speaker 2: top one percent. Yeah yeah, but that being said, they're

806
00:33:32,480 --> 00:33:35,480
Speaker 2: no penalty. CD is a really cool product just in

807
00:33:35,520 --> 00:33:38,080
Speaker 2: case you decide that you do need the money before

808
00:33:38,120 --> 00:33:40,960
Speaker 2: the CD term ends. It's basically like locking in a

809
00:33:41,040 --> 00:33:44,960
Speaker 2: high yield savings rate that, although that being said, I

810
00:33:44,960 --> 00:33:47,760
Speaker 2: think at the moment is not quite as high as

811
00:33:47,880 --> 00:33:51,400
Speaker 2: what the different high yield savings accounts are offering. Basically,

812
00:33:51,400 --> 00:33:53,880
Speaker 2: the banks don't want to get caught holding the bag.

813
00:33:53,680 --> 00:33:56,280
Speaker 1: After IRET drop. But in what you're doing is saying,

814
00:33:56,320 --> 00:33:59,320
Speaker 1: I'm willing to take a slightly lower rate right now

815
00:33:59,480 --> 00:34:03,200
Speaker 1: because I'm protecting against downside future risk of rates going

816
00:34:03,280 --> 00:34:07,000
Speaker 1: a whole lot lower and savings accounts rates dropping. So yeah,

817
00:34:07,040 --> 00:34:08,719
Speaker 1: maybe I've got a lower rate for the first three

818
00:34:08,719 --> 00:34:10,879
Speaker 1: months of the CD, but I'm hoping that my rate

819
00:34:10,920 --> 00:34:13,239
Speaker 1: is actually higher than the savings account rate for the

820
00:34:13,320 --> 00:34:15,560
Speaker 1: last nine or twelve or fifteen months of the CD,

821
00:34:15,680 --> 00:34:19,320
Speaker 1: however long of a term you're taking out And basically

822
00:34:19,640 --> 00:34:22,839
Speaker 1: that product that Ally offers and they're the only bank

823
00:34:22,920 --> 00:34:25,040
Speaker 1: we know of that offers that it's like a mix

824
00:34:25,080 --> 00:34:27,440
Speaker 1: between a highield savings account and a CD. It's kind

825
00:34:27,440 --> 00:34:30,480
Speaker 1: of trying to blend the post book World's fybrid product

826
00:34:30,520 --> 00:34:35,520
Speaker 1: exactly like the toy Deeprius of saving sure vehicles instantly. Enough,

827
00:34:35,520 --> 00:34:37,839
Speaker 1: though the premium for CDs seems to have gone away,

828
00:34:37,920 --> 00:34:39,680
Speaker 1: kind of like I said, you used to be able

829
00:34:39,680 --> 00:34:41,440
Speaker 1: to make an extra half a percentage or so if

830
00:34:41,440 --> 00:34:43,799
Speaker 1: you opted to lock your money away inside of a

831
00:34:43,800 --> 00:34:46,360
Speaker 1: CD instead of a savings account. But the truth of

832
00:34:46,400 --> 00:34:48,600
Speaker 1: the matter is you're going to snag a higher interest rate.

833
00:34:48,760 --> 00:34:51,800
Speaker 1: You're going to see superior returns, at least in the moment.

834
00:34:52,560 --> 00:34:54,840
Speaker 1: In one of our favorite high old savings accounts these days,

835
00:34:55,000 --> 00:34:58,040
Speaker 1: Betterment is paying five percent with an initial half percent bump,

836
00:34:58,120 --> 00:35:01,399
Speaker 1: So five and a half percent an ANYCD i've seen.

837
00:35:02,000 --> 00:35:04,040
Speaker 1: But of course, like I'm saying, the downside of that

838
00:35:04,120 --> 00:35:07,400
Speaker 1: going that route is if rate cuts become fast and frequent,

839
00:35:07,440 --> 00:35:09,520
Speaker 1: the rate isn't going to stay there, and you might

840
00:35:09,560 --> 00:35:11,719
Speaker 1: be wishing you'd lock that rate in even if it

841
00:35:11,800 --> 00:35:15,239
Speaker 1: was slightly inferior and not lifted up to chance. But

842
00:35:15,560 --> 00:35:17,839
Speaker 1: of course, predicting what the FED is going to do, Matt,

843
00:35:17,880 --> 00:35:20,720
Speaker 1: that has people have been disappointed time and time again

844
00:35:20,840 --> 00:35:23,640
Speaker 1: by that making predictions, the FED ends up not doing

845
00:35:23,680 --> 00:35:26,200
Speaker 1: what the crowd thought they were going to do. And

846
00:35:26,280 --> 00:35:29,279
Speaker 1: so if your whole reason for choosing a CD over

847
00:35:29,280 --> 00:35:32,080
Speaker 1: a high oled savings account is banking on rate cuts,

848
00:35:32,480 --> 00:35:34,320
Speaker 1: that might not be the best route to go either.

849
00:35:34,719 --> 00:35:38,440
Speaker 2: Yeah, And one other consideration is your personal timeline and

850
00:35:38,440 --> 00:35:40,080
Speaker 2: what it is that you want to do with that money,

851
00:35:40,120 --> 00:35:43,000
Speaker 2: because is it even a good idea, let's say, to

852
00:35:43,040 --> 00:35:45,360
Speaker 2: have as much money within a CD where it is

853
00:35:45,440 --> 00:35:47,799
Speaker 2: locked up, because these might be dollars that you'll need

854
00:35:47,840 --> 00:35:49,800
Speaker 2: for a down payment, or maybe they're dollars that you

855
00:35:49,880 --> 00:35:51,920
Speaker 2: want to live on in a year or two. And

856
00:35:52,040 --> 00:35:54,719
Speaker 2: if so, I think savings products are more than likely

857
00:35:54,760 --> 00:35:56,080
Speaker 2: going to be your best bet, which.

858
00:35:55,880 --> 00:35:57,520
Speaker 1: Could be a CD or a savings account.

859
00:35:57,640 --> 00:35:59,359
Speaker 2: True, but depending on your timeline, if some of these

860
00:35:59,400 --> 00:36:02,920
Speaker 2: dollars are let's say for five plus years down the road, well,

861
00:36:03,200 --> 00:36:06,160
Speaker 2: investing a portion of these dollars could make a whole

862
00:36:06,160 --> 00:36:08,480
Speaker 2: lot of sense. Just wanting to put that on your

863
00:36:08,560 --> 00:36:10,839
Speaker 2: radar because of the fact that I think there's this

864
00:36:10,960 --> 00:36:13,920
Speaker 2: a psychological shift that happens when you've got money within

865
00:36:13,920 --> 00:36:15,640
Speaker 2: a hygy old savings because at the end of the

866
00:36:15,640 --> 00:36:20,359
Speaker 2: month you get that sweet little dividend payout, and it's

867
00:36:20,480 --> 00:36:23,759
Speaker 2: not an inconsequential amount of money. Let's say, if you

868
00:36:23,800 --> 00:36:27,759
Speaker 2: have a year's worth of living expenses set aside, the

869
00:36:27,760 --> 00:36:31,840
Speaker 2: way we talk about investing, you don't often realize or

870
00:36:31,880 --> 00:36:34,840
Speaker 2: perceive that the value of that is going up because typically,

871
00:36:35,040 --> 00:36:37,520
Speaker 2: and again the way we talk about investing again, ninety

872
00:36:37,520 --> 00:36:41,759
Speaker 2: five plus percent of your net worth, it's something that

873
00:36:41,800 --> 00:36:45,120
Speaker 2: you're basically ignoring. It's not something that you're looking at frequently.

874
00:36:45,480 --> 00:36:47,279
Speaker 2: But when you're there in your savings account, that's something

875
00:36:47,320 --> 00:36:49,520
Speaker 2: that I look at much more frequently, Joel than I

876
00:36:49,560 --> 00:36:51,080
Speaker 2: look at my brokerage accounts, and then I look at

877
00:36:51,080 --> 00:36:52,759
Speaker 2: my roth IRA, then I look at my four one K.

878
00:36:53,080 --> 00:36:54,879
Speaker 2: And so when you get that end of the month

879
00:36:55,000 --> 00:36:58,799
Speaker 2: interest payout, you might be tempted to think, oh, this

880
00:36:58,840 --> 00:37:02,759
Speaker 2: feels nice, is fun, this is good when and that

881
00:37:02,880 --> 00:37:04,440
Speaker 2: might distract you from the fact that you need to

882
00:37:04,480 --> 00:37:06,960
Speaker 2: take that chunk of money and instead stick that in

883
00:37:07,000 --> 00:37:07,440
Speaker 2: the market.

884
00:37:07,560 --> 00:37:09,759
Speaker 1: And I think just because it's been in the CD

885
00:37:10,000 --> 00:37:12,560
Speaker 1: often makes people think, well, clearly, the next place to

886
00:37:12,560 --> 00:37:15,160
Speaker 1: put it is in another CD. But it's important to

887
00:37:15,200 --> 00:37:17,560
Speaker 1: reassess your goals and say, is that the best place

888
00:37:17,600 --> 00:37:20,239
Speaker 1: for the money? Maybe I had an earmarked for this

889
00:37:20,280 --> 00:37:22,319
Speaker 1: one thing, but if you're planning on locking it up

890
00:37:22,320 --> 00:37:25,279
Speaker 1: again for another portion of time, is the CD the

891
00:37:25,320 --> 00:37:28,480
Speaker 1: best vehicle for this money? Maybe it is for half

892
00:37:28,520 --> 00:37:30,200
Speaker 1: the money, and then maybe the other half should go

893
00:37:30,280 --> 00:37:33,239
Speaker 1: towards something. And that's another thing. You could divide it

894
00:37:33,320 --> 00:37:35,920
Speaker 1: up half between CD, half between a CD and highyield

895
00:37:35,960 --> 00:37:38,520
Speaker 1: savings account. You co do half a CD half into

896
00:37:39,080 --> 00:37:40,880
Speaker 1: your investments. I mean, there are a bunch of different

897
00:37:40,960 --> 00:37:43,120
Speaker 1: choices you can make, but I would just question whether

898
00:37:43,200 --> 00:37:45,200
Speaker 1: or not all the money belongs in a CD or not.

899
00:37:45,920 --> 00:37:48,040
Speaker 1: And you know, this is a big chunk of money, Matt.

900
00:37:48,040 --> 00:37:50,200
Speaker 1: The stakes are high rate shopping. When you've got five

901
00:37:50,239 --> 00:37:52,600
Speaker 1: thousand bucks in the bank, that's one thing. But Linda

902
00:37:52,640 --> 00:37:57,280
Speaker 1: can realistically see a four plus percentage bump in earnings

903
00:37:57,600 --> 00:37:59,120
Speaker 1: on seventy five thousand bucks a.

904
00:37:59,120 --> 00:37:59,560
Speaker 2: Lot of money.

905
00:37:59,560 --> 00:38:01,759
Speaker 1: We're talking thousands of dollars over the course of the year.

906
00:38:01,800 --> 00:38:03,440
Speaker 1: So there's a lot of people who make a mountain

907
00:38:03,440 --> 00:38:05,320
Speaker 1: out of a molehill. I got a couple grands, should

908
00:38:05,320 --> 00:38:07,320
Speaker 1: I go from this bank that's paying four percent to

909
00:38:07,360 --> 00:38:10,760
Speaker 1: the one that's paying five. That's a small potatoes question.

910
00:38:10,120 --> 00:38:12,160
Speaker 1: Ye potatoes question. Yea is one thing.

911
00:38:12,200 --> 00:38:13,839
Speaker 2: But if we're talking two or three percent, but then

912
00:38:13,880 --> 00:38:15,640
Speaker 2: on top of that, we're looking at a number that's

913
00:38:15,640 --> 00:38:18,600
Speaker 2: closer to six figures, that's why we're having this conversation.

914
00:38:18,640 --> 00:38:20,320
Speaker 1: It's well worth her time and energy, exactly.

915
00:38:20,400 --> 00:38:23,520
Speaker 2: And that's the that's truly the bigger sort of view,

916
00:38:23,840 --> 00:38:26,680
Speaker 2: the larger point of view, the what ten thousand foot

917
00:38:26,719 --> 00:38:27,920
Speaker 2: view that we want you to take when it comes

918
00:38:27,960 --> 00:38:30,600
Speaker 2: to your finances, because again, rate hopping for a half

919
00:38:30,600 --> 00:38:32,879
Speaker 2: a percent, eh, probably not just stick with the bank

920
00:38:32,960 --> 00:38:35,840
Speaker 2: that you have always liked or one that serves your needs.

921
00:38:36,280 --> 00:38:38,920
Speaker 2: But when you've got a fatter chunk of change on hand,

922
00:38:39,000 --> 00:38:41,200
Speaker 2: that's yeah, you want to be a little bit smarter

923
00:38:41,360 --> 00:38:43,120
Speaker 2: with that money. All right, Joel, we've got.

924
00:38:42,960 --> 00:38:43,440
Speaker 1: More to get to.

925
00:38:43,520 --> 00:38:46,120
Speaker 2: We're going to take our Facebook question of the week,

926
00:38:46,160 --> 00:38:48,759
Speaker 2: and speaking of returns on your money, this one has

927
00:38:48,800 --> 00:38:51,640
Speaker 2: to do with receiving a negative return on your money,

928
00:38:51,680 --> 00:38:53,520
Speaker 2: and we'll get to that one right after this.

929
00:39:01,320 --> 00:39:03,680
Speaker 1: All right, man, we've got more money saving information we

930
00:39:03,719 --> 00:39:05,920
Speaker 1: got to deliver on this episode. Of course, it's time

931
00:39:05,960 --> 00:39:07,959
Speaker 1: for the Facebook question of the Week. This one comes

932
00:39:08,000 --> 00:39:10,839
Speaker 1: from Kira and she wrote, is it better to pay

933
00:39:10,880 --> 00:39:13,800
Speaker 1: down the principle of your mortgage or put that money

934
00:39:13,800 --> 00:39:17,680
Speaker 1: into home improvements? Which one would get a better ROI

935
00:39:17,840 --> 00:39:20,160
Speaker 1: return on investment. By the way, the interest rate I've

936
00:39:20,160 --> 00:39:23,320
Speaker 1: got on my home is six point eight seven five percent.

937
00:39:23,680 --> 00:39:25,239
Speaker 1: It's not what we're used to hearing from people, Matt

938
00:39:25,280 --> 00:39:27,920
Speaker 1: six point eights. That's normal now for people taking out

939
00:39:27,960 --> 00:39:30,520
Speaker 1: of mortgage. That was not the norm for a long

940
00:39:30,560 --> 00:39:31,160
Speaker 1: period of time.

941
00:39:31,280 --> 00:39:34,560
Speaker 2: Yeah, well, this is a great question, and from where

942
00:39:34,560 --> 00:39:36,759
Speaker 2: we're sitting, the answer is pretty clear. Paying off the

943
00:39:36,760 --> 00:39:39,760
Speaker 2: mortgage is going to provide the best return on your investment.

944
00:39:40,280 --> 00:39:44,200
Speaker 2: And that's because most home projects have a negative return

945
00:39:44,400 --> 00:39:45,160
Speaker 2: on investments.

946
00:39:45,160 --> 00:39:46,120
Speaker 1: They're not really an investment.

947
00:39:46,280 --> 00:39:48,560
Speaker 2: No, no, there are you know, we've talked about this recently.

948
00:39:48,600 --> 00:39:50,799
Speaker 2: I feel like we've talked about garage doors. There are

949
00:39:50,800 --> 00:39:54,040
Speaker 2: a select few projects that will net what it is

950
00:39:54,080 --> 00:39:56,480
Speaker 2: that you paid for that like installing a new garage

951
00:39:56,480 --> 00:39:58,279
Speaker 2: door if you're if you get an old, crummy one,

952
00:39:58,320 --> 00:39:59,000
Speaker 2: or painting.

953
00:39:58,760 --> 00:40:00,000
Speaker 1: It like we talked about. And actually a lot of

954
00:40:00,040 --> 00:40:01,920
Speaker 1: people in the Facebook group how the money Faceboo group

955
00:40:01,960 --> 00:40:04,640
Speaker 1: are saying, oh, that's something I'm interested in eighty bucks

956
00:40:04,640 --> 00:40:06,680
Speaker 1: to like refresh that door and improve the value of

957
00:40:06,680 --> 00:40:07,960
Speaker 1: my home. That's that's a no brainer.

958
00:40:08,000 --> 00:40:10,600
Speaker 2: And in fact, I literally have paint swatches on my

959
00:40:10,600 --> 00:40:12,759
Speaker 2: garage door right now, Joe, because that's a conversation I

960
00:40:12,800 --> 00:40:14,879
Speaker 2: had with my wife. So we're not doing We talked

961
00:40:14,920 --> 00:40:17,520
Speaker 2: about a listener who he talked about doing the faux

962
00:40:17,680 --> 00:40:18,560
Speaker 2: wood treatment.

963
00:40:18,800 --> 00:40:18,880
Speaker 1: Hu.

964
00:40:19,160 --> 00:40:20,680
Speaker 2: I didn't even realize this until I looked at my

965
00:40:20,719 --> 00:40:22,879
Speaker 2: garage door up close. You don't, really, I guess stay

966
00:40:22,880 --> 00:40:25,279
Speaker 2: next to your garage door when it's closed, typically if

967
00:40:25,280 --> 00:40:26,920
Speaker 2: you're home. I don't know. If I'm home, the grash

968
00:40:26,920 --> 00:40:28,799
Speaker 2: door is open and then I hit the button when

969
00:40:28,800 --> 00:40:32,239
Speaker 2: I leave and then it closes. But very much I don't.

970
00:40:32,239 --> 00:40:33,480
Speaker 2: But I'm like, your neighbors look at it more than

971
00:40:33,520 --> 00:40:35,640
Speaker 2: you do. There's a wood grain texture already on there,

972
00:40:35,719 --> 00:40:37,400
Speaker 2: so I'm like, oh, shoot, maybe we should do the

973
00:40:37,719 --> 00:40:39,680
Speaker 2: wood grain grain thing. But that being said, we're looking

974
00:40:39,719 --> 00:40:41,640
Speaker 2: at painting it, but we are planning to do the

975
00:40:41,680 --> 00:40:45,640
Speaker 2: magnetic door hinge and door handle kits. Did we talk

976
00:40:45,640 --> 00:40:48,120
Speaker 2: about that when we talked about the we did, and

977
00:40:48,280 --> 00:40:50,960
Speaker 2: they even sell like these garage door window kits. There

978
00:40:51,080 --> 00:40:52,719
Speaker 2: and they're all magnets and they just stick on to

979
00:40:52,800 --> 00:40:58,160
Speaker 2: the door, and they're surprisingly incredibly realistic looking cool, which

980
00:40:58,440 --> 00:41:00,319
Speaker 2: it kind of sounds like you're just putting lipstick on

981
00:41:00,400 --> 00:41:03,280
Speaker 2: a pig. It's just like, here's a giant, ugly metal

982
00:41:03,280 --> 00:41:05,359
Speaker 2: garage door. Let's find a way to make it look

983
00:41:05,560 --> 00:41:09,000
Speaker 2: more custom But I'm telling you it's surprisingly convincing. Ni

984
00:41:09,040 --> 00:41:10,520
Speaker 2: Kay and I will walk around the neighborhood and I'm like,

985
00:41:10,520 --> 00:41:12,439
Speaker 2: I'm pretty sure that's one of those kids right there,

986
00:41:12,800 --> 00:41:15,280
Speaker 2: and we would never have noticed that before. But because

987
00:41:15,320 --> 00:41:18,279
Speaker 2: it's something we're considering, it's on our radar. You're gonna

988
00:41:18,280 --> 00:41:20,000
Speaker 2: take them before and after picks to share with us. Yeah,

989
00:41:20,000 --> 00:41:21,520
Speaker 2: I'll do that either way. I miss them on the Instagram.

990
00:41:21,560 --> 00:41:23,759
Speaker 2: I'm sure if we're gonna do the door hinge kit,

991
00:41:23,800 --> 00:41:25,800
Speaker 2: but if we do, I definitely want make sure to

992
00:41:26,080 --> 00:41:28,359
Speaker 2: capture that. But all that being said, most folks don't

993
00:41:28,360 --> 00:41:30,360
Speaker 2: get excited about garage doors, right like they get the

994
00:41:30,400 --> 00:41:34,520
Speaker 2: most jazzed about new cabinets, new countertops, a bathroom renovation.

995
00:41:34,719 --> 00:41:34,919
Speaker 4: Right.

996
00:41:35,360 --> 00:41:38,799
Speaker 2: Those certainly make a big visual impact, but they might

997
00:41:38,840 --> 00:41:42,080
Speaker 2: only get like two thirds or like half of the

998
00:41:42,120 --> 00:41:44,480
Speaker 2: money that you spent back in your hands if you

999
00:41:44,480 --> 00:41:47,239
Speaker 2: do end up selling it, because guess what, you don't

1000
00:41:47,239 --> 00:41:49,560
Speaker 2: have universal taste, And there is no such thing as

1001
00:41:49,640 --> 00:41:52,800
Speaker 2: universal taste, because you know, you take the average of everybody.

1002
00:41:52,840 --> 00:41:56,480
Speaker 2: Is there actually somebody who likes builder like the standard

1003
00:41:56,680 --> 00:41:59,480
Speaker 2: finishes that a builder might choose. No, people have their

1004
00:41:59,480 --> 00:42:00,920
Speaker 2: own opinions as to what it is that they want

1005
00:42:00,920 --> 00:42:01,800
Speaker 2: to surround themselves with.

1006
00:42:01,840 --> 00:42:04,359
Speaker 1: YEA, well, I think HGTP has given people at least

1007
00:42:04,400 --> 00:42:06,600
Speaker 1: an idea of what they should be everybody as a professional.

1008
00:42:06,600 --> 00:42:09,600
Speaker 1: But even still like that, that tastes very wildly, and

1009
00:42:09,640 --> 00:42:12,320
Speaker 1: I think some people might might say, oh, well, clearly

1010
00:42:12,360 --> 00:42:15,160
Speaker 1: paying money down on the mortgage because the interest rate

1011
00:42:15,200 --> 00:42:17,960
Speaker 1: is so much higher than what most people have where

1012
00:42:18,040 --> 00:42:19,359
Speaker 1: oh hey, if this was a two and a half

1013
00:42:19,400 --> 00:42:22,319
Speaker 1: percent rate, Matt and Joe would have different advice. Not

1014
00:42:22,400 --> 00:42:25,839
Speaker 1: really actually, because you would think, oh yeah, a low rate.

1015
00:42:26,160 --> 00:42:28,479
Speaker 2: It does sway the decision a little bit, a little

1016
00:42:28,480 --> 00:42:31,239
Speaker 2: It makes it easier to say that, yes, yes, but

1017
00:42:31,640 --> 00:42:34,480
Speaker 2: the same information kind of that you were just talking about, Matt,

1018
00:42:34,520 --> 00:42:37,320
Speaker 2: about the return on investment of home improvements, that remains true,

1019
00:42:37,320 --> 00:42:38,840
Speaker 2: Like the numbers don't change.

1020
00:42:39,400 --> 00:42:42,640
Speaker 1: It's not actually an investment. It's just sinking money into

1021
00:42:42,680 --> 00:42:44,719
Speaker 1: a home. It's still a negative return, and the goal

1022
00:42:45,000 --> 00:42:47,239
Speaker 1: is to do it for your own pleasure if you

1023
00:42:47,320 --> 00:42:49,719
Speaker 1: have the cash, not because you think it's going to

1024
00:42:49,760 --> 00:42:52,799
Speaker 1: make you money. Right does that does? So we're not

1025
00:42:52,880 --> 00:42:55,640
Speaker 1: really against home improvements, Like you're gonna do some home

1026
00:42:55,680 --> 00:42:58,040
Speaker 1: round projects yourself, some big ones. You know, we've both

1027
00:42:58,080 --> 00:43:01,000
Speaker 1: taken on projects of various sizes around the house from

1028
00:43:01,000 --> 00:43:03,560
Speaker 1: time to time. Most time owners do. That's like part

1029
00:43:03,560 --> 00:43:05,400
Speaker 1: of the joy and privilege of being a homeowners. You

1030
00:43:05,400 --> 00:43:07,560
Speaker 1: get the mess of that thing onlike being a renter.

1031
00:43:07,760 --> 00:43:09,160
Speaker 1: Had a renter the other day asked me if they

1032
00:43:09,160 --> 00:43:11,560
Speaker 1: could paint the bathroom walls salmon, and I was like,

1033
00:43:12,760 --> 00:43:14,560
Speaker 1: I don't know. Like I got a mock up of

1034
00:43:14,600 --> 00:43:16,879
Speaker 1: it. It didn't look awesome. I was like, if you want

1035
00:43:16,920 --> 00:43:18,799
Speaker 1: to paint them back at the end of the day,

1036
00:43:18,840 --> 00:43:20,680
Speaker 1: I guess, but I don't know if I want to

1037
00:43:20,719 --> 00:43:22,160
Speaker 1: like it to be left sam ex, I don't think

1038
00:43:22,160 --> 00:43:23,760
Speaker 1: I'll be as appealing to people in the future.

1039
00:43:23,800 --> 00:43:26,360
Speaker 2: Well, and then you're potentially left with the sloppy paint shots.

1040
00:43:26,400 --> 00:43:27,919
Speaker 2: Right if they're the ones doing it as well, because

1041
00:43:27,920 --> 00:43:29,200
Speaker 2: they're in a rush to get out of there because

1042
00:43:29,200 --> 00:43:30,279
Speaker 2: they're excited about their new place.

1043
00:43:30,280 --> 00:43:31,839
Speaker 1: I've been moving on too, So these are the kind

1044
00:43:31,880 --> 00:43:33,440
Speaker 1: of things though that is a renter, you have to

1045
00:43:33,480 --> 00:43:36,040
Speaker 1: ask that question. As an owner, Yeah, you don't, but

1046
00:43:36,360 --> 00:43:38,279
Speaker 1: you know, home equity debt, it's not one of the

1047
00:43:38,280 --> 00:43:40,920
Speaker 1: worst forms of debt. But it's ideal to take on

1048
00:43:41,000 --> 00:43:43,040
Speaker 1: those projects because you have the money saved up, you're

1049
00:43:43,080 --> 00:43:46,239
Speaker 1: excited about your bathroom, your porch, whatever it is. It's

1050
00:43:46,320 --> 00:43:48,719
Speaker 1: likely to increase the value of your home some but

1051
00:43:48,840 --> 00:43:51,320
Speaker 1: don't do it for that express purpose. That's that's just

1052
00:43:51,360 --> 00:43:53,120
Speaker 1: shouldn't be the motivation behind it totally.

1053
00:43:53,160 --> 00:43:54,839
Speaker 2: And by the way, let's go back to the like

1054
00:43:55,000 --> 00:43:56,960
Speaker 2: the theoretical two and a half percent mortgage. We're not

1055
00:43:57,000 --> 00:43:58,319
Speaker 2: saying that if you have a two and a half

1056
00:43:58,320 --> 00:44:00,239
Speaker 2: percent mortgage out there, that you should be paying that

1057
00:44:00,280 --> 00:44:01,960
Speaker 2: off because that's a better return on your money than

1058
00:44:02,000 --> 00:44:03,120
Speaker 2: actually renovating the home.

1059
00:44:03,600 --> 00:44:05,920
Speaker 1: You should be doing something completely outside of those Yes, exactly,

1060
00:44:05,960 --> 00:44:07,319
Speaker 1: Like if you had a two.

1061
00:44:07,239 --> 00:44:09,680
Speaker 2: And a half percent mortgage, role even though paying that

1062
00:44:09,719 --> 00:44:11,600
Speaker 2: off gives you a guaranteed too and a half percent

1063
00:44:11,640 --> 00:44:13,719
Speaker 2: return on your money, is that what you're gonna do

1064
00:44:13,719 --> 00:44:16,879
Speaker 2: with extra money on hand, No, I'm going to take

1065
00:44:16,880 --> 00:44:20,839
Speaker 2: that money and instead invest it. And even in Kiro's case,

1066
00:44:20,880 --> 00:44:23,480
Speaker 2: she's got a six point eight seventy five percent, honestly

1067
00:44:23,520 --> 00:44:25,479
Speaker 2: does get a little bit trickier because it's like, Okay,

1068
00:44:25,520 --> 00:44:28,440
Speaker 2: are you willing to turn down a guaranteed seven percent

1069
00:44:28,520 --> 00:44:30,240
Speaker 2: basically on your money.

1070
00:44:30,719 --> 00:44:31,800
Speaker 1: I think I would say yes.

1071
00:44:31,920 --> 00:44:33,759
Speaker 2: I think I would say no, I'm going to keep

1072
00:44:33,760 --> 00:44:37,600
Speaker 2: that around. And because of the stock market, historically you're

1073
00:44:37,640 --> 00:44:40,600
Speaker 2: looking at ten percent, and that's like looking back over

1074
00:44:40,600 --> 00:44:42,799
Speaker 2: the past one hundred years, and if you look at

1075
00:44:42,800 --> 00:44:44,960
Speaker 2: the past two years, you're looking at forty percent returns

1076
00:44:44,960 --> 00:44:47,040
Speaker 2: in the market. And so what I'm highlighting here is

1077
00:44:47,080 --> 00:44:49,640
Speaker 2: the potential for outsized returns by investing your money as

1078
00:44:49,640 --> 00:44:52,160
Speaker 2: opposed to going with the quote unquote safe option of

1079
00:44:52,200 --> 00:44:53,000
Speaker 2: paying down debt.

1080
00:44:53,040 --> 00:44:55,280
Speaker 1: Well, the other problem is you pay off your home quickly.

1081
00:44:55,320 --> 00:44:57,120
Speaker 1: That's great, that is a wonderful thing. It's nice to

1082
00:44:57,120 --> 00:44:59,160
Speaker 1: be debt free, to own the home you live in

1083
00:44:59,200 --> 00:45:01,880
Speaker 1: free and clear. But it's also massively delayed your ability

1084
00:45:01,960 --> 00:45:05,120
Speaker 1: to build wealth for your future too, because you prioritize

1085
00:45:05,120 --> 00:45:07,040
Speaker 1: one over the other. The other thing. I think it's

1086
00:45:07,040 --> 00:45:09,919
Speaker 1: worth pointing out here Matt is that there's all sorts

1087
00:45:09,960 --> 00:45:13,200
Speaker 1: of things that we call investments. I hear people I'm

1088
00:45:13,200 --> 00:45:14,880
Speaker 1: going to invest in a nice TV, and I'm always

1089
00:45:14,920 --> 00:45:18,279
Speaker 1: like no, Or I'm going to invest in this new car. No,

1090
00:45:18,320 --> 00:45:20,440
Speaker 1: that's not what that is. That's a purchase. Let's just

1091
00:45:20,480 --> 00:45:23,560
Speaker 1: call the thing what it is. And this is where

1092
00:45:23,560 --> 00:45:26,680
Speaker 1: it gets confusing with home renovations and owning a home,

1093
00:45:26,719 --> 00:45:29,080
Speaker 1: because a lot of people talk about your primary home

1094
00:45:29,120 --> 00:45:32,560
Speaker 1: as an investment too, and it is more of an

1095
00:45:32,600 --> 00:45:35,920
Speaker 1: investment than those other purchases I just mentioned, because yes,

1096
00:45:35,960 --> 00:45:37,439
Speaker 1: the value is going to go up over the years

1097
00:45:37,440 --> 00:45:38,880
Speaker 1: that you own it, and you want to keep it

1098
00:45:38,880 --> 00:45:41,080
Speaker 1: in good shape, of course, because you want to be

1099
00:45:41,080 --> 00:45:43,600
Speaker 1: able to make money on it, hopefully at the end

1100
00:45:44,000 --> 00:45:47,040
Speaker 1: of the ownership time period. But that still doesn't mean

1101
00:45:47,040 --> 00:45:50,520
Speaker 1: you're going to see value and ROI basically for all

1102
00:45:50,600 --> 00:45:52,520
Speaker 1: the improvements that you're making. So you have to be

1103
00:45:52,560 --> 00:45:55,120
Speaker 1: careful about how how you talk about those things. Sometimes

1104
00:45:55,120 --> 00:45:57,719
Speaker 1: I think the language that we ascribe to the home

1105
00:45:57,719 --> 00:45:59,759
Speaker 1: that we own, talking about it, thinking about it too

1106
00:45:59,840 --> 00:46:02,800
Speaker 1: much just an investment allows us to mentally feel comfortable

1107
00:46:03,080 --> 00:46:05,279
Speaker 1: funneling more dollars into it when we're not going to

1108
00:46:05,320 --> 00:46:06,799
Speaker 1: see those dollars back at the end of the day.

1109
00:46:06,920 --> 00:46:09,160
Speaker 2: Yeah, it's just so hard when you're looking at losing,

1110
00:46:09,480 --> 00:46:10,759
Speaker 2: like that's what we need to do, Actually, we need

1111
00:46:10,800 --> 00:46:12,919
Speaker 2: to flip the script and instead of seeing, oh, well

1112
00:46:12,960 --> 00:46:16,120
Speaker 2: this home improvement, it's gonna you're gonna get back ninety

1113
00:46:16,200 --> 00:46:19,680
Speaker 2: six percent. Like that sounds like a high percentage amount, right,

1114
00:46:20,040 --> 00:46:21,799
Speaker 2: And actually if you go to like the different so

1115
00:46:21,840 --> 00:46:24,120
Speaker 2: you're gonna lose four percent and say yes, exactly, completely

1116
00:46:24,120 --> 00:46:26,399
Speaker 2: flip the script and do the negative. And so it's like, hey,

1117
00:46:26,400 --> 00:46:28,239
Speaker 2: would you stick money into an investment when you know

1118
00:46:28,520 --> 00:46:32,160
Speaker 2: pretty much guaranteed you're gonna lose four percent? Absolutely not.

1119
00:46:32,719 --> 00:46:35,200
Speaker 2: And I was gonna mention there's different garadual companies out there,

1120
00:46:35,239 --> 00:46:37,680
Speaker 2: and it's funny because their stats are like, it's one

1121
00:46:37,760 --> 00:46:39,759
Speaker 2: hundred and three percent one hundred and four percent of

1122
00:46:39,760 --> 00:46:41,680
Speaker 2: the money that you stick in there. So basically they're

1123
00:46:41,719 --> 00:46:44,880
Speaker 2: trying they are trying to write the ship and be like, no,

1124
00:46:45,440 --> 00:46:47,120
Speaker 2: you will, this is going to cause you to make

1125
00:46:47,160 --> 00:46:49,399
Speaker 2: more money. And I do think there might be some

1126
00:46:50,000 --> 00:46:52,879
Speaker 2: rare instances where that is the case with like the

1127
00:46:52,920 --> 00:46:56,320
Speaker 2: worst garage door, and even outside of that, it's different

1128
00:46:56,360 --> 00:46:58,680
Speaker 2: renovations and improvements that you might make on a home

1129
00:46:58,760 --> 00:47:02,880
Speaker 2: because it is such an eye sore. Yeah, there are

1130
00:47:02,920 --> 00:47:04,799
Speaker 2: always going to be outliers, though, there are a lot of.

1131
00:47:04,719 --> 00:47:08,919
Speaker 1: Home flippers that truly do well in the space as

1132
00:47:09,200 --> 00:47:12,000
Speaker 1: because they know how to buy, they know how to renovate,

1133
00:47:12,120 --> 00:47:13,000
Speaker 1: and they know how to sell.

1134
00:47:13,080 --> 00:47:15,920
Speaker 2: They are looking for the outliers. They are looking for

1135
00:47:15,960 --> 00:47:17,680
Speaker 2: the diamonds in the rough. But that's not what most

1136
00:47:17,680 --> 00:47:18,040
Speaker 2: people have.

1137
00:47:18,120 --> 00:47:19,799
Speaker 1: And there's a lot of other home flippers who lose

1138
00:47:19,800 --> 00:47:21,920
Speaker 1: their shirt because they don't know how to do those things. Well.

1139
00:47:22,000 --> 00:47:25,200
Speaker 1: It's precarious endeavor. It's not that it's not possible to

1140
00:47:25,200 --> 00:47:28,240
Speaker 1: make those improvements if you're an incredibly detail oriented person

1141
00:47:28,360 --> 00:47:30,520
Speaker 1: and frugal and you kind of know all the ins

1142
00:47:30,520 --> 00:47:33,480
Speaker 1: and outs of home flipping and and and the like,

1143
00:47:33,760 --> 00:47:35,040
Speaker 1: but you kind of get all got to get all

1144
00:47:35,040 --> 00:47:36,680
Speaker 1: those other things right too, That's right.

1145
00:47:36,800 --> 00:47:39,120
Speaker 2: Yeah, So kyro We hope that gets you pointed in

1146
00:47:39,200 --> 00:47:39,920
Speaker 2: the right direction.

1147
00:47:40,200 --> 00:47:41,439
Speaker 1: Joel, Let's get back to the beer.

1148
00:47:41,440 --> 00:47:44,160
Speaker 2: You and I enjoyed a super Megabyte, which is a

1149
00:47:44,200 --> 00:47:47,239
Speaker 2: beer by Hot Butcher for the world. What do you think, Bud,

1150
00:47:47,400 --> 00:47:49,480
Speaker 2: I always like the Hot Butcher branding. This one had

1151
00:47:49,600 --> 00:47:52,239
Speaker 2: like a metal shark on the front. Yeah, it looks

1152
00:47:52,239 --> 00:47:54,360
Speaker 2: pretty great and hand illustration.

1153
00:47:54,719 --> 00:47:56,680
Speaker 1: Yeah. I love the bear vibe to it. Love the

1154
00:47:56,719 --> 00:47:59,040
Speaker 1: beer so good. Yeah, and I like they call it

1155
00:47:59,080 --> 00:48:01,160
Speaker 1: super megabite because it's got this big old hot bite

1156
00:48:01,200 --> 00:48:03,600
Speaker 1: when it hits your tongue. Yeah, it's abrasive in the

1157
00:48:03,600 --> 00:48:04,040
Speaker 1: best way.

1158
00:48:04,120 --> 00:48:05,960
Speaker 2: It's like, I feel like megabite would have just been

1159
00:48:06,000 --> 00:48:08,840
Speaker 2: the double, but super mega bite tells you that. Okay,

1160
00:48:08,840 --> 00:48:10,880
Speaker 2: I see how this is a triple yes, right, yeah, exactly,

1161
00:48:11,200 --> 00:48:13,080
Speaker 2: And it's got it's bright tropical.

1162
00:48:13,640 --> 00:48:15,879
Speaker 1: I think it's like luscious. They're like almost enbellows your tongue.

1163
00:48:15,920 --> 00:48:17,600
Speaker 1: It's it's a beautiful.

1164
00:48:17,160 --> 00:48:20,200
Speaker 2: Beer, massive amounts of flavor. Like I picture, you know,

1165
00:48:20,239 --> 00:48:22,800
Speaker 2: like the Richter scale, like little needle on the scratch

1166
00:48:22,840 --> 00:48:25,480
Speaker 2: a piece of paper like or a light detector test

1167
00:48:25,520 --> 00:48:27,759
Speaker 2: that's also yeah yeah, yeah, so similar thing, Like the

1168
00:48:28,120 --> 00:48:30,800
Speaker 2: paper was moving along and the you know, the little

1169
00:48:30,880 --> 00:48:33,120
Speaker 2: pin the needle was right there in the middle kind

1170
00:48:33,120 --> 00:48:34,480
Speaker 2: of hanging out. And then as soon as I took

1171
00:48:34,840 --> 00:48:37,279
Speaker 2: a sip of the beer, it like wow, like shut

1172
00:48:37,400 --> 00:48:39,560
Speaker 2: up and down. There's a whole lot of flavor going

1173
00:48:39,560 --> 00:48:41,920
Speaker 2: on here. You can definitely taste, how big it is,

1174
00:48:41,960 --> 00:48:43,800
Speaker 2: and yet you almost get some of those like a

1175
00:48:44,560 --> 00:48:47,640
Speaker 2: candy sort of presence with it. It's not just the

1176
00:48:47,960 --> 00:48:49,759
Speaker 2: herbal sort of flavors that you get with some of

1177
00:48:49,760 --> 00:48:52,400
Speaker 2: the different hazy IPAs, but it has almost like the

1178
00:48:52,680 --> 00:48:53,840
Speaker 2: I guess you kind of have to have some of

1179
00:48:53,840 --> 00:48:57,000
Speaker 2: those candied sweetness sweeter sort of notes when you are

1180
00:48:57,000 --> 00:48:59,440
Speaker 2: dealing with a triple like this. But yeah, really tasty.

1181
00:48:59,480 --> 00:49:01,120
Speaker 2: Glad I got to share it though.

1182
00:49:01,080 --> 00:49:03,160
Speaker 1: Same me too. Really good. All right, that's gonna do

1183
00:49:03,200 --> 00:49:05,120
Speaker 1: it for this one. We'll put links to some of

1184
00:49:05,120 --> 00:49:07,440
Speaker 1: the things we mentioned up in the show notes on

1185
00:49:07,480 --> 00:49:09,600
Speaker 1: our website at howtomoney dot com. Don't forget to sign

1186
00:49:09,680 --> 00:49:11,520
Speaker 1: up for the how to Money newsletter. You can find

1187
00:49:11,520 --> 00:49:13,359
Speaker 1: that at how to money dot com. Slash newsletter comes

1188
00:49:13,360 --> 00:49:16,440
Speaker 1: out every Tuesday morning, free of charge, obviously, and comes

1189
00:49:16,560 --> 00:49:20,040
Speaker 1: check full of personal finance information that you can use.

1190
00:49:20,320 --> 00:49:22,439
Speaker 1: If you're listening to this podcast, you're gonna like it.

1191
00:49:22,440 --> 00:49:24,360
Speaker 1: It's a no brainer. All right, buddy. That's gonna do

1192
00:49:24,400 --> 00:49:26,640
Speaker 1: it for this one. Until next time, Best Friends Out,

1193
00:49:26,800 --> 00:49:28,160
Speaker 1: Best Friends Out.