1 00:00:01,120 --> 00:00:04,680 Speaker 1: Hey grown ups, Matt and Molly here. We know we 2 00:00:04,720 --> 00:00:06,640 Speaker 1: said we would be back with a brand new episode 3 00:00:06,640 --> 00:00:09,400 Speaker 1: this week, but we need to take a quick summer break. 4 00:00:09,520 --> 00:00:12,040 Speaker 2: But we promised to be back very soon with a 5 00:00:12,080 --> 00:00:14,520 Speaker 2: brand new episode about cooking like a grown up. 6 00:00:14,760 --> 00:00:16,960 Speaker 1: Since our last episode, though, Matt and I have been 7 00:00:17,000 --> 00:00:20,400 Speaker 1: talking a lot about finances and savings and budgeting, and 8 00:00:20,440 --> 00:00:22,960 Speaker 1: it got us talking about one of our favorite episodes 9 00:00:23,000 --> 00:00:25,640 Speaker 1: from last season, and we thought all of you lovely 10 00:00:25,640 --> 00:00:28,160 Speaker 1: grownups who are on this journey with us may want 11 00:00:28,200 --> 00:00:29,080 Speaker 1: to revisit it too. 12 00:00:29,440 --> 00:00:31,680 Speaker 2: And our last episode on budgeting, you likely heard us 13 00:00:31,680 --> 00:00:34,080 Speaker 2: reference my dear friend Jonah Batista, who was also our 14 00:00:34,120 --> 00:00:37,199 Speaker 2: first guest on this podcast, and he's someone I completely 15 00:00:37,200 --> 00:00:39,560 Speaker 2: cred it with helping me better understand my finances. 16 00:00:40,040 --> 00:00:43,080 Speaker 1: Jonah was our expert on retirement planning and helped us 17 00:00:43,080 --> 00:00:45,880 Speaker 1: better understand what we need to know when thinking about 18 00:00:45,960 --> 00:00:49,599 Speaker 1: our future finances, and a lot of it relates to budgeting. 19 00:00:49,920 --> 00:00:51,600 Speaker 2: So we thought it might be the perfect time to 20 00:00:51,640 --> 00:00:54,240 Speaker 2: revisit this episode because there are so many connective threads 21 00:00:54,240 --> 00:00:55,200 Speaker 2: between the two topics. 22 00:00:55,480 --> 00:00:57,760 Speaker 1: So while you wait for a brand new episode about 23 00:00:57,760 --> 00:01:01,200 Speaker 1: Cooking like an adult, enjoy revisiting a classic with a 24 00:01:01,200 --> 00:01:04,040 Speaker 1: lot of great lessons about budgeting and planning for retirement, 25 00:01:04,240 --> 00:01:05,760 Speaker 1: and we will see you very soon. 26 00:01:06,520 --> 00:01:13,880 Speaker 2: Do I have any questions about retirement? Aging is natural, 27 00:01:13,920 --> 00:01:17,800 Speaker 2: Getting old is a choice. The new retirement is not retiring. 28 00:01:18,360 --> 00:01:20,479 Speaker 1: No, I need you're going dollars when you're in your 29 00:01:20,480 --> 00:01:24,320 Speaker 1: twenties and thirties. Retirement seems like an abstract concept. 30 00:01:24,760 --> 00:01:28,840 Speaker 3: My biggest concerns with retirement right now is just starting 31 00:01:29,200 --> 00:01:30,000 Speaker 3: from zero. 32 00:01:30,760 --> 00:01:33,080 Speaker 1: Not to mention, the idea of saving large sums of 33 00:01:33,120 --> 00:01:36,480 Speaker 1: money early in your career feels impossible when you're just 34 00:01:36,560 --> 00:01:37,559 Speaker 1: trying to pay rent. 35 00:01:38,480 --> 00:01:41,759 Speaker 2: I just don't think I know enough the different terms, 36 00:01:41,760 --> 00:01:43,520 Speaker 2: the different types of accounts you can have. 37 00:01:44,200 --> 00:01:47,120 Speaker 1: For most of us who don't have an extensive education 38 00:01:47,280 --> 00:01:50,840 Speaker 1: in financial planning, were launched into adulthood without really any 39 00:01:50,880 --> 00:01:53,800 Speaker 1: information or guide around how to get started. 40 00:01:54,440 --> 00:01:56,920 Speaker 2: You know, I keep hearing that social security just isn't 41 00:01:57,000 --> 00:01:57,800 Speaker 2: kind of be a thing. 42 00:01:58,240 --> 00:02:01,760 Speaker 1: In fact, according to twenty twenty US Census data, only 43 00:02:01,840 --> 00:02:05,320 Speaker 1: forty nine point five percent of millennials held some sort 44 00:02:05,320 --> 00:02:10,960 Speaker 1: of retirement account. That's just barely half given the current economy, 45 00:02:11,080 --> 00:02:15,360 Speaker 1: given inflation, so many different things that we are up against. 46 00:02:15,480 --> 00:02:19,200 Speaker 1: What's even more telling, eighty percent of US adults wished 47 00:02:19,240 --> 00:02:22,560 Speaker 1: that they were required to complete a semester or even 48 00:02:22,560 --> 00:02:25,720 Speaker 1: a year long course focused on personal finance education during 49 00:02:25,800 --> 00:02:29,200 Speaker 1: high school. How much money should I be aiming to 50 00:02:29,280 --> 00:02:32,720 Speaker 1: have saved? Honestly, that would have been great. And I 51 00:02:32,800 --> 00:02:34,920 Speaker 1: don't understand why they don't teach us this type of 52 00:02:34,919 --> 00:02:37,360 Speaker 1: thing in high school or even as a required gen 53 00:02:37,480 --> 00:02:38,440 Speaker 1: ed course in college. 54 00:02:39,280 --> 00:02:41,919 Speaker 2: I'm not really sure what a roth ira is. 55 00:02:43,000 --> 00:02:45,880 Speaker 1: And it's not just planning for retirement. There's all sorts 56 00:02:45,880 --> 00:02:47,800 Speaker 1: of stuff that we have to figure out on our 57 00:02:47,840 --> 00:02:49,720 Speaker 1: own once we're thrust into adulthood. 58 00:02:50,600 --> 00:02:53,440 Speaker 2: What else should we be doing? 59 00:02:53,800 --> 00:02:56,720 Speaker 1: But today I say no more, no more living in 60 00:02:56,760 --> 00:03:00,600 Speaker 1: anxiety over what the future looks like. Today, we are 61 00:03:00,720 --> 00:03:03,680 Speaker 1: all taking charge of our lives and learning all the 62 00:03:03,720 --> 00:03:08,639 Speaker 1: secrets and lessons needed to be perfectly functioning and responsible adults. 63 00:03:08,960 --> 00:03:11,480 Speaker 1: And we're also going to finally figure out what the 64 00:03:11,520 --> 00:03:13,440 Speaker 1: hell ira actually means. 65 00:03:14,280 --> 00:03:14,480 Speaker 2: Hi. 66 00:03:14,639 --> 00:03:17,640 Speaker 1: I'm Molly Soosha, and I'm a podcast producer and a 67 00:03:17,919 --> 00:03:20,320 Speaker 1: mediocre millennial who's trying to do the best you can 68 00:03:20,400 --> 00:03:22,720 Speaker 1: to figure out how to be a more responsible adult 69 00:03:22,760 --> 00:03:25,200 Speaker 1: and better human. One day at a time, along with 70 00:03:25,240 --> 00:03:27,400 Speaker 1: my trustee co producer and colleague Matt Stillo. 71 00:03:27,639 --> 00:03:30,000 Speaker 2: Hey there, fellow works in progress. 72 00:03:29,840 --> 00:03:32,079 Speaker 1: We're going to learn about all the things we wish 73 00:03:32,160 --> 00:03:33,880 Speaker 1: they would have taught us in school that might have 74 00:03:33,960 --> 00:03:36,240 Speaker 1: been way more useful to our everyday lives. 75 00:03:36,640 --> 00:03:38,240 Speaker 2: I don't want you leaving that money on. 76 00:03:38,200 --> 00:03:40,800 Speaker 3: The table just because nobody could be bothered to. 77 00:03:40,800 --> 00:03:53,600 Speaker 1: Explain, So start taking notes because this is hello everyone, 78 00:03:53,880 --> 00:03:57,320 Speaker 1: and welcome to the very first episode of Grown Up 79 00:03:57,320 --> 00:04:00,520 Speaker 1: Stuff How to Adult, a show we've created to help 80 00:04:00,600 --> 00:04:03,920 Speaker 1: you figure out the stuff you're supposed to know once 81 00:04:04,000 --> 00:04:07,800 Speaker 1: you become a quote unquote grown up. Throughout this first season, 82 00:04:07,880 --> 00:04:09,520 Speaker 1: we're going to talk to some experts who are going 83 00:04:09,600 --> 00:04:12,680 Speaker 1: to help guide us through things like finding and leasing 84 00:04:12,680 --> 00:04:15,520 Speaker 1: an apartment, buying a house, car care one oh one, 85 00:04:16,120 --> 00:04:18,120 Speaker 1: how to apply and get approved for a credit card, 86 00:04:18,200 --> 00:04:18,719 Speaker 1: and why. 87 00:04:18,560 --> 00:04:19,279 Speaker 2: You need one. 88 00:04:19,760 --> 00:04:22,760 Speaker 1: But today we're going to be talking specifically about the 89 00:04:22,800 --> 00:04:25,760 Speaker 1: basics of how to plan for retirement and when you 90 00:04:25,800 --> 00:04:29,080 Speaker 1: should start. But before we get too far into it. 91 00:04:29,160 --> 00:04:31,000 Speaker 2: Matt, yes, Smiley, what. 92 00:04:31,080 --> 00:04:33,400 Speaker 1: Do you know about retirement plans? 93 00:04:33,920 --> 00:04:36,760 Speaker 2: Well? I do know that if I could answer that question, 94 00:04:36,920 --> 00:04:41,160 Speaker 2: we wouldn't be making this podcast. But here's what I 95 00:04:41,240 --> 00:04:43,960 Speaker 2: can tell you. I know that I want to retire. 96 00:04:44,680 --> 00:04:46,760 Speaker 2: I know that I've been lucky enough to work with 97 00:04:46,839 --> 00:04:50,200 Speaker 2: a few companies that offer four oh one K plans. Actually, 98 00:04:50,279 --> 00:04:53,240 Speaker 2: our current employer offers a matching program with our four 99 00:04:53,240 --> 00:04:55,440 Speaker 2: oh one K, which you know is basically just them 100 00:04:55,440 --> 00:04:58,280 Speaker 2: offering us free money to help us retire. Right, So 101 00:04:58,440 --> 00:05:02,120 Speaker 2: I'm definitely taking advantage of. But other than that, I'm 102 00:05:02,160 --> 00:05:06,880 Speaker 2: thirty three. I would like to retire at a respectable age. 103 00:05:07,040 --> 00:05:09,840 Speaker 2: But am I on track to do that? And if not, 104 00:05:10,000 --> 00:05:12,240 Speaker 2: how can I course correct? Those are things that I 105 00:05:12,279 --> 00:05:13,480 Speaker 2: am hoping to find out today. 106 00:05:13,839 --> 00:05:16,400 Speaker 1: You sound like you have your shit together way more 107 00:05:16,440 --> 00:05:17,000 Speaker 1: than I do. 108 00:05:17,360 --> 00:05:20,360 Speaker 2: I doubt that very much, but fill me in. I mean, 109 00:05:20,360 --> 00:05:21,560 Speaker 2: where are you at with retirement? 110 00:05:21,760 --> 00:05:24,160 Speaker 1: I remember the first time I got a job, my 111 00:05:24,240 --> 00:05:28,080 Speaker 1: dad started talking to me immediately about saving for retirement 112 00:05:28,120 --> 00:05:30,120 Speaker 1: and all the different retirement plans I needed to have. 113 00:05:30,920 --> 00:05:33,120 Speaker 1: But when you start off in media, you do not 114 00:05:33,360 --> 00:05:34,880 Speaker 1: make a whole lot of money. And I was living 115 00:05:34,920 --> 00:05:36,400 Speaker 1: in New York City and. 116 00:05:36,680 --> 00:05:38,160 Speaker 2: Stuff be expensive. 117 00:05:39,000 --> 00:05:41,960 Speaker 1: Just try to pay that rent, and so God love 118 00:05:42,000 --> 00:05:44,840 Speaker 1: my dad, I just started to zone out every time 119 00:05:44,880 --> 00:05:46,679 Speaker 1: he talked about it, which was probably not the best 120 00:05:46,680 --> 00:05:50,440 Speaker 1: because He's just trying to help and make sure I'm 121 00:05:50,480 --> 00:05:51,680 Speaker 1: covered for my future. 122 00:05:52,400 --> 00:05:55,680 Speaker 2: Okay, well, no zoning out today, because we are joined 123 00:05:55,680 --> 00:05:58,719 Speaker 2: by a special guest who thankfully knows a heck of 124 00:05:58,720 --> 00:06:00,400 Speaker 2: a lot more about retirement than we do. 125 00:06:01,240 --> 00:06:05,760 Speaker 4: I'm Jonah Batista, and I'm an asset and wealth management 126 00:06:06,080 --> 00:06:06,880 Speaker 4: senior manager. 127 00:06:07,720 --> 00:06:10,960 Speaker 1: Jonah works for one of the leading international accounting firms, 128 00:06:11,000 --> 00:06:13,800 Speaker 1: and essentially it's his job to ensure that the financial 129 00:06:13,800 --> 00:06:16,000 Speaker 1: statements of his clients are accurate. 130 00:06:16,560 --> 00:06:19,800 Speaker 4: I'm kind of like a referee. When management of a 131 00:06:19,880 --> 00:06:24,160 Speaker 4: company says we have a bajillion dollars. My job is 132 00:06:24,200 --> 00:06:29,320 Speaker 4: to audit those financial statements and give assurance to readers 133 00:06:29,320 --> 00:06:32,240 Speaker 4: of those financial statements that what they're reading is complete 134 00:06:32,320 --> 00:06:33,080 Speaker 4: and accurate. 135 00:06:33,960 --> 00:06:36,240 Speaker 1: But what makes Yonah even more apps to help us 136 00:06:36,279 --> 00:06:39,320 Speaker 1: understand financial planning for retirement is that most of his 137 00:06:39,480 --> 00:06:43,120 Speaker 1: clients are in the wealth management sector, so oftentimes their 138 00:06:43,160 --> 00:06:46,600 Speaker 1: companies are firms that people seek out to set up 139 00:06:46,640 --> 00:06:49,719 Speaker 1: funds for retirement. I wanted to start with the basics 140 00:06:49,720 --> 00:06:52,839 Speaker 1: and understand what Jonah sees as the biggest struggles or 141 00:06:52,839 --> 00:06:56,200 Speaker 1: misconceptions around retirement planning and figure out how much we 142 00:06:56,279 --> 00:07:03,760 Speaker 1: actually need saved away before we retire. How do you 143 00:07:03,960 --> 00:07:08,200 Speaker 1: think about retirement plans from your line of work. 144 00:07:08,920 --> 00:07:12,960 Speaker 4: When I come across friends, family, just anyone who's generally 145 00:07:13,120 --> 00:07:16,920 Speaker 4: interested in personal finance, I always try to stress the 146 00:07:17,000 --> 00:07:21,560 Speaker 4: importance of planning for retirement. And the main reason, the 147 00:07:21,600 --> 00:07:26,800 Speaker 4: punchline is no one is going to loan you money 148 00:07:27,120 --> 00:07:30,760 Speaker 4: for retirement because they know they'll never get that money back, 149 00:07:31,640 --> 00:07:33,400 Speaker 4: right like you can get a loan for a car, 150 00:07:33,560 --> 00:07:40,000 Speaker 4: a house, school, home improvements, you name it. But it's 151 00:07:40,000 --> 00:07:45,040 Speaker 4: a scary thing to think and acknowledge that no one's 152 00:07:45,120 --> 00:07:48,120 Speaker 4: going to fund your retirement. The government will give you 153 00:07:48,160 --> 00:07:50,520 Speaker 4: Social Security, but at the end of the day, it's 154 00:07:50,560 --> 00:07:52,280 Speaker 4: not going to cover your expenses. 155 00:07:52,920 --> 00:07:54,960 Speaker 1: What do you think are some of the biggest points 156 00:07:54,960 --> 00:07:57,480 Speaker 1: of confusion that you notice either talking to your friends 157 00:07:57,560 --> 00:08:00,760 Speaker 1: or your family about retirement and retirevironment planning. 158 00:08:01,680 --> 00:08:09,040 Speaker 4: There's confusion and or misunderstanding of how important time is 159 00:08:10,000 --> 00:08:13,880 Speaker 4: in the accumulation of wealth. If you have a billion 160 00:08:13,960 --> 00:08:17,120 Speaker 4: dollars and you start investing when you're in your twenties 161 00:08:18,160 --> 00:08:20,840 Speaker 4: and you're not going to need this money until you're retired, 162 00:08:20,880 --> 00:08:23,680 Speaker 4: you're going to have a ton of money, and you 163 00:08:23,720 --> 00:08:26,640 Speaker 4: would say, well, that's easy. You started with a million dollars. 164 00:08:26,640 --> 00:08:29,560 Speaker 4: So everyone kind of is just like, well, the biggest 165 00:08:29,560 --> 00:08:32,720 Speaker 4: input to having a successful retirement is having a lot 166 00:08:32,760 --> 00:08:36,600 Speaker 4: of money to begin with, and that's not true. What 167 00:08:36,800 --> 00:08:40,000 Speaker 4: is true is the amount of time you give yourself 168 00:08:40,520 --> 00:08:45,360 Speaker 4: to invest for retirement. For example, if you saved one 169 00:08:45,440 --> 00:08:48,439 Speaker 4: hundred to two hundred dollars a month when you were 170 00:08:48,480 --> 00:08:50,520 Speaker 4: like twenty two, and you just do that all the 171 00:08:50,520 --> 00:08:54,360 Speaker 4: way up until you retire, you would have millions of 172 00:08:54,480 --> 00:08:58,600 Speaker 4: dollars in retirement. To get that same amount of money, 173 00:08:58,840 --> 00:09:02,040 Speaker 4: if you start that at forty five, you need to 174 00:09:02,080 --> 00:09:05,720 Speaker 4: be saving maybe close to one thousand dollars or more 175 00:09:05,880 --> 00:09:06,360 Speaker 4: a month. 176 00:09:06,840 --> 00:09:07,080 Speaker 2: Wow. 177 00:09:07,280 --> 00:09:12,320 Speaker 4: So time is a big misunderstood input to retirement, even 178 00:09:12,360 --> 00:09:16,160 Speaker 4: if it's a little bit of money, Just start right, yeah, 179 00:09:16,320 --> 00:09:19,920 Speaker 4: to the extent you can do that. Don't put that 180 00:09:20,000 --> 00:09:22,720 Speaker 4: on until you're in your forties or even later. In 181 00:09:22,760 --> 00:09:26,680 Speaker 4: some people's cases, it becomes a snowball that's very, very 182 00:09:26,720 --> 00:09:29,319 Speaker 4: hard to get on top of if you're waiting too long. 183 00:09:30,240 --> 00:09:32,840 Speaker 1: So let's break it down to like the most basic 184 00:09:32,920 --> 00:09:36,720 Speaker 1: level of things, like what is a retirement account and 185 00:09:36,800 --> 00:09:40,240 Speaker 1: how is it different from a traditional savings account that 186 00:09:40,320 --> 00:09:42,160 Speaker 1: we might all already have at a bank. 187 00:09:42,600 --> 00:09:46,040 Speaker 4: There's different kinds of retirement accounts, but the general thing 188 00:09:46,080 --> 00:09:50,679 Speaker 4: with these retirement accounts is they have tax advantages. So 189 00:09:51,240 --> 00:09:55,880 Speaker 4: for example, you can draw on these accounts once you 190 00:09:55,960 --> 00:09:59,240 Speaker 4: hit a certain age and not pay any taxes or 191 00:09:59,360 --> 00:10:03,240 Speaker 4: pay lower taxes than what you would have to pay 192 00:10:03,760 --> 00:10:07,400 Speaker 4: when you are investing through a regular brokerage account. So, 193 00:10:07,880 --> 00:10:11,200 Speaker 4: for example, a lot of people have companies sponsored four 194 00:10:11,240 --> 00:10:14,160 Speaker 4: oh one K accounts. That's a type of retirement account. 195 00:10:14,800 --> 00:10:17,920 Speaker 4: You could have an individual retirement account and IRA, you 196 00:10:17,960 --> 00:10:22,880 Speaker 4: could have a roth IRA. There are various different retirement accounts, 197 00:10:22,920 --> 00:10:26,719 Speaker 4: but the punchline on those is there are tax advantages 198 00:10:27,040 --> 00:10:29,880 Speaker 4: that you want to take advantage of, and so you 199 00:10:29,920 --> 00:10:32,480 Speaker 4: want to maximize the potential of those types of accounts. 200 00:10:33,360 --> 00:10:37,520 Speaker 1: Wroth IRA to me sounds so similar to what a 201 00:10:37,559 --> 00:10:40,000 Speaker 1: lot of traditional savings accounts are, right Like, we take 202 00:10:40,440 --> 00:10:43,360 Speaker 1: money that we've already been taxed on, so it's ours. 203 00:10:43,679 --> 00:10:46,079 Speaker 1: So what is truly the difference between our wroth ira 204 00:10:46,400 --> 00:10:49,320 Speaker 1: and say your savings account at your bank. 205 00:10:50,200 --> 00:10:52,840 Speaker 4: So when you go to a bank, you open up 206 00:10:53,440 --> 00:10:57,160 Speaker 4: a checking account or a savings account, right, that's really 207 00:10:57,360 --> 00:10:59,840 Speaker 4: just to park your money, so you're not going to 208 00:10:59,840 --> 00:11:03,960 Speaker 4: really earn anything significant by parking your money there. So 209 00:11:04,000 --> 00:11:06,560 Speaker 4: then the next type of account is a taxable account, 210 00:11:07,000 --> 00:11:10,400 Speaker 4: also known as a brokerage account. So that's where you 211 00:11:10,400 --> 00:11:12,400 Speaker 4: would take the money in your checking account or your 212 00:11:12,400 --> 00:11:16,560 Speaker 4: savings account, you'd transfer it to a brokerage account, and 213 00:11:16,679 --> 00:11:20,200 Speaker 4: in there you can start buying stocks and bonds. However, 214 00:11:20,440 --> 00:11:24,760 Speaker 4: that account is structured differently than a retirement account, so 215 00:11:25,360 --> 00:11:28,440 Speaker 4: a roth ira, an IRA, A four to oh one k. 216 00:11:29,200 --> 00:11:35,199 Speaker 4: These types of retirement accounts are structured to benefit later 217 00:11:35,280 --> 00:11:38,920 Speaker 4: on in life, where you can draw on them in 218 00:11:39,080 --> 00:11:43,360 Speaker 4: retirement and not pay taxes, or at least not pay 219 00:11:43,400 --> 00:11:46,040 Speaker 4: as high a tax. So let's say you open up 220 00:11:46,040 --> 00:11:48,760 Speaker 4: a taxable account and then you also open up a 221 00:11:48,800 --> 00:11:52,400 Speaker 4: roth ira, and you buy the same stocks in both. 222 00:11:52,600 --> 00:11:55,800 Speaker 4: Let's say it's one hundred thousand bucks in these accounts, 223 00:11:56,000 --> 00:11:59,440 Speaker 4: and I'm sixty five, I can pull out that one 224 00:11:59,480 --> 00:12:02,400 Speaker 4: hundred k through my wroth ira and I'd get one 225 00:12:02,440 --> 00:12:05,880 Speaker 4: hundred K in my checking account. If I pulled that 226 00:12:06,040 --> 00:12:08,880 Speaker 4: hundred k out from my taxble account, it would be 227 00:12:08,920 --> 00:12:12,200 Speaker 4: one hundred knus whatever tax bracket I'm in that year, 228 00:12:13,160 --> 00:12:18,280 Speaker 4: so it would be maybe seventy five thousand, So they 229 00:12:18,360 --> 00:12:24,280 Speaker 4: serve different purposes those types of accounts. 230 00:12:26,080 --> 00:12:29,040 Speaker 1: Is there an amount or percentage of our paycheck? And 231 00:12:29,080 --> 00:12:31,400 Speaker 1: I know this depends on this changes based on how 232 00:12:31,400 --> 00:12:34,400 Speaker 1: old we are, but on average that you would recommend 233 00:12:34,440 --> 00:12:36,000 Speaker 1: a person put away each month. 234 00:12:37,280 --> 00:12:40,560 Speaker 4: So if you try to set up a retirement account 235 00:12:40,679 --> 00:12:43,040 Speaker 4: or work with a financial advisor or anything like that, 236 00:12:43,520 --> 00:12:45,320 Speaker 4: the first question they're going to say is do you 237 00:12:45,360 --> 00:12:49,880 Speaker 4: have a budget? And I think most people don't. And 238 00:12:50,000 --> 00:12:52,640 Speaker 4: so going back to what I was saying earlier, where 239 00:12:52,920 --> 00:12:56,280 Speaker 4: one of the main inputs is time right to retirement, 240 00:12:56,720 --> 00:13:01,760 Speaker 4: the second input is having a budget. And so again 241 00:13:01,880 --> 00:13:04,120 Speaker 4: you can do your own research and see where you 242 00:13:04,120 --> 00:13:07,640 Speaker 4: want to land. But I've found the fifty thirty twenty 243 00:13:07,640 --> 00:13:11,240 Speaker 4: budget to be the one. What that means is you 244 00:13:11,280 --> 00:13:14,480 Speaker 4: take fifty percent of your money that should be for 245 00:13:14,559 --> 00:13:20,000 Speaker 4: your needs like rent, food, things like that. Thirty percent 246 00:13:20,480 --> 00:13:27,400 Speaker 4: should be your wants so like entertainment, traveling, vacations, stuff 247 00:13:27,400 --> 00:13:30,280 Speaker 4: like that, and then twenty percent should be your saving. 248 00:13:30,920 --> 00:13:37,040 Speaker 4: So the fifty thirty twenty budget is considered to be 249 00:13:37,160 --> 00:13:38,040 Speaker 4: pretty frugal. 250 00:13:38,600 --> 00:13:39,920 Speaker 2: So what I. 251 00:13:39,800 --> 00:13:43,000 Speaker 4: Did and what I tell you know, anyone that's interested 252 00:13:43,040 --> 00:13:45,240 Speaker 4: in this kind of stuff is I actually flipped my 253 00:13:45,360 --> 00:13:48,960 Speaker 4: thirty in my twenty so I went super frugal and 254 00:13:49,040 --> 00:13:54,000 Speaker 4: I saved thirty percent and limited my wants to twenty percent. 255 00:13:54,360 --> 00:13:57,080 Speaker 4: And I did that for a number of years just 256 00:13:57,160 --> 00:14:01,280 Speaker 4: to get my snowball kind of rolling. So I guess 257 00:14:01,360 --> 00:14:05,280 Speaker 4: the long way to answer your question is people need 258 00:14:05,320 --> 00:14:09,160 Speaker 4: to create a budget and track their money and see 259 00:14:09,679 --> 00:14:13,000 Speaker 4: what they actually can do. Right. It's easy to say, 260 00:14:13,040 --> 00:14:16,120 Speaker 4: all right, I'm gonna save twenty five percent, but if 261 00:14:16,160 --> 00:14:18,280 Speaker 4: you don't know that you can do it, you're kind 262 00:14:18,280 --> 00:14:21,480 Speaker 4: of setting yourself up for failure. So when you set 263 00:14:21,520 --> 00:14:24,200 Speaker 4: up a budget, you can say, holy crap, like I'm 264 00:14:24,240 --> 00:14:27,040 Speaker 4: spending so much money on these subscriptions that I forgot 265 00:14:27,040 --> 00:14:30,080 Speaker 4: I even have I don't need. This turns out I 266 00:14:30,120 --> 00:14:33,200 Speaker 4: can actually save thirty percent. Right, you don't know that 267 00:14:33,240 --> 00:14:37,360 Speaker 4: stuff until you're going through the process. So long way 268 00:14:37,400 --> 00:14:40,200 Speaker 4: to answer your question is fifteen percent I think is 269 00:14:40,240 --> 00:14:45,040 Speaker 4: probably a base. The higher you go, the better it is. 270 00:14:45,600 --> 00:14:48,600 Speaker 4: The higher you go the sooner in life, the less 271 00:14:48,640 --> 00:14:50,920 Speaker 4: you have to do later in life. That's kind of 272 00:14:50,920 --> 00:14:54,840 Speaker 4: how it works. Everyone's situation is different, some people have 273 00:14:54,880 --> 00:14:57,520 Speaker 4: families earlier in life, so they can't save as much, 274 00:14:57,880 --> 00:15:01,040 Speaker 4: and that's okay. It's knowing how much you can save 275 00:15:01,200 --> 00:15:02,400 Speaker 4: and starting the process. 276 00:15:03,280 --> 00:15:05,720 Speaker 1: Yeah, that's an excellent point. And it kind of perfectly 277 00:15:05,720 --> 00:15:08,000 Speaker 1: transitions into the next question that I have for you. 278 00:15:09,040 --> 00:15:13,280 Speaker 1: How much should we have stashed away, you know, for retirement? 279 00:15:13,400 --> 00:15:15,280 Speaker 1: What should be the goal? Like, at what point should 280 00:15:15,320 --> 00:15:17,360 Speaker 1: we say? Okay, I think we can start thinking about 281 00:15:17,400 --> 00:15:17,880 Speaker 1: this now. 282 00:15:18,440 --> 00:15:21,280 Speaker 4: The rule of thumb is you're going to need around 283 00:15:21,320 --> 00:15:24,920 Speaker 4: eighty percent of your expenses a year, plus or minus, 284 00:15:24,960 --> 00:15:27,080 Speaker 4: depending on the type of life you want you want 285 00:15:27,120 --> 00:15:30,640 Speaker 4: to live. So there are tools out there, like, for example, 286 00:15:30,680 --> 00:15:32,840 Speaker 4: I use Vaneguard a lot. They have a lot of 287 00:15:32,880 --> 00:15:37,560 Speaker 4: free investor tools. Every dollar I spend I throw into 288 00:15:37,960 --> 00:15:41,200 Speaker 4: like a calculator and it'll say, okay, is this the 289 00:15:41,280 --> 00:15:44,000 Speaker 4: quality of life you want to maintain? Well, yeah, I 290 00:15:44,040 --> 00:15:46,880 Speaker 4: love my quality life right now, so yes, let's do that, right. 291 00:15:47,480 --> 00:15:47,800 Speaker 2: Cool. 292 00:15:48,040 --> 00:15:50,040 Speaker 4: It spits out a number and says, here's what you're 293 00:15:50,080 --> 00:15:53,440 Speaker 4: going to need each year to maintain this quality of life. 294 00:15:54,120 --> 00:15:58,280 Speaker 4: It factors in medical expenses, it's averages, right, stuff like that, 295 00:15:58,600 --> 00:16:01,360 Speaker 4: and then it'll say, okay, so here's the number that 296 00:16:01,400 --> 00:16:05,480 Speaker 4: you're gonna need to retire. And so once you have 297 00:16:05,560 --> 00:16:08,720 Speaker 4: that figure, you have something to work towards. 298 00:16:12,280 --> 00:16:13,160 Speaker 2: Grown up stuff. 299 00:16:13,280 --> 00:16:24,360 Speaker 3: How to Adult will be back after a quick break. 300 00:16:25,320 --> 00:16:28,080 Speaker 2: Welcome back to grown up stuff How to Adult? 301 00:16:31,120 --> 00:16:35,119 Speaker 1: Okay, So, a retirement account is different from a traditional 302 00:16:35,120 --> 00:16:37,160 Speaker 1: savings account that you open at a bank because it 303 00:16:37,280 --> 00:16:40,920 Speaker 1: actually invests your money and grows it, unlike a savings account, 304 00:16:40,920 --> 00:16:44,520 Speaker 1: which just accrues minimal interest over time. A retirement account 305 00:16:44,520 --> 00:16:47,440 Speaker 1: is then different from your standard brokerage account that also 306 00:16:47,520 --> 00:16:51,120 Speaker 1: invest your money because there are various tax benefits associated 307 00:16:51,160 --> 00:16:55,400 Speaker 1: with the retirement account. But not all retirement accounts are alike, 308 00:16:55,680 --> 00:16:57,600 Speaker 1: and there are lots of different kinds in which you 309 00:16:57,600 --> 00:17:00,440 Speaker 1: can put your money, each with its own benefit. According 310 00:17:00,440 --> 00:17:03,120 Speaker 1: to Jonah, the smartest move is to diversify the types 311 00:17:03,160 --> 00:17:07,240 Speaker 1: of retirement accounts you have. How does it work once 312 00:17:07,600 --> 00:17:10,800 Speaker 1: we are retired? Is there a rule on you know, 313 00:17:11,040 --> 00:17:13,560 Speaker 1: when you can take money out? Is it a certain amount? 314 00:17:13,600 --> 00:17:14,679 Speaker 1: Is it a certain age? Like? 315 00:17:14,800 --> 00:17:15,520 Speaker 2: How does it work? 316 00:17:16,080 --> 00:17:19,800 Speaker 4: So let's fast forward twenty eight years from now and 317 00:17:19,840 --> 00:17:24,000 Speaker 4: I'm sixty. If I follow all of the financial advice 318 00:17:24,080 --> 00:17:27,479 Speaker 4: that's out there, I would have a handful of different 319 00:17:27,480 --> 00:17:31,840 Speaker 4: accounts because you have different structures and different advantages. So, 320 00:17:32,080 --> 00:17:37,600 Speaker 4: for example, a roth IRA is money I put in 321 00:17:38,320 --> 00:17:43,000 Speaker 4: like today that is post tax, and so it accumulates 322 00:17:43,840 --> 00:17:45,600 Speaker 4: until I get to that age limit, and then I 323 00:17:45,600 --> 00:17:47,840 Speaker 4: can pull it out. And when I pull it out, 324 00:17:48,200 --> 00:17:52,280 Speaker 4: I pay zero taxes. So I could actually retire early 325 00:17:52,320 --> 00:17:54,520 Speaker 4: if I wanted to, and I could just live off 326 00:17:54,520 --> 00:17:57,000 Speaker 4: of that account because I don't have to pay the government. 327 00:17:57,400 --> 00:17:59,240 Speaker 4: So whatever I pull out of that account, I get 328 00:17:59,280 --> 00:18:01,520 Speaker 4: today and I can coast until I get to that 329 00:18:01,600 --> 00:18:03,520 Speaker 4: next age limit that I have to hit for my 330 00:18:03,560 --> 00:18:06,639 Speaker 4: four oh one K. So you want to have different 331 00:18:06,680 --> 00:18:11,240 Speaker 4: accounts for different tax advantages and different timings. You don't 332 00:18:11,240 --> 00:18:13,320 Speaker 4: want to put all your eggs in one basket because 333 00:18:13,640 --> 00:18:16,400 Speaker 4: say you have an accident at work, or you don't 334 00:18:16,400 --> 00:18:19,520 Speaker 4: want to deal with the stress or family issues and 335 00:18:20,000 --> 00:18:23,239 Speaker 4: you just can't do that job. Okay, But then I 336 00:18:23,280 --> 00:18:25,600 Speaker 4: can't tap my four to one K because I haven't 337 00:18:25,680 --> 00:18:28,960 Speaker 4: hit that age requirement yet, so I get penalized when 338 00:18:28,960 --> 00:18:32,600 Speaker 4: I pull money out. So you want different types of 339 00:18:32,680 --> 00:18:38,080 Speaker 4: retirement accounts for a tax diversification, but b it gives 340 00:18:38,119 --> 00:18:43,159 Speaker 4: you more flexibility, which really equates to more financial freedom 341 00:18:43,359 --> 00:18:45,920 Speaker 4: when you get closer to that retirement age. 342 00:18:46,520 --> 00:18:49,280 Speaker 1: I think this is something really important because, to be honest, like, 343 00:18:49,720 --> 00:18:52,000 Speaker 1: this is something that I have never thought about, and 344 00:18:52,000 --> 00:18:54,720 Speaker 1: I'm sure a lot of the people listening are like, well, 345 00:18:54,760 --> 00:18:56,560 Speaker 1: I have my four oh one K through work and 346 00:18:56,760 --> 00:18:59,520 Speaker 1: that's all I need. This is a great recommendation is 347 00:18:59,520 --> 00:19:02,240 Speaker 1: that they should probably start also investing on the side 348 00:19:02,440 --> 00:19:03,720 Speaker 1: in like an IRA. 349 00:19:03,880 --> 00:19:06,200 Speaker 4: Is what you're saying, exactly. 350 00:19:06,760 --> 00:19:09,240 Speaker 1: What do you recommend when we do leave a job 351 00:19:09,240 --> 00:19:10,920 Speaker 1: where we have a four to oh one K or 352 00:19:10,960 --> 00:19:12,800 Speaker 1: a four or three B and we start a new 353 00:19:12,880 --> 00:19:15,280 Speaker 1: job at a different company with a four to h 354 00:19:15,320 --> 00:19:18,120 Speaker 1: one K account, how do we go about making sure 355 00:19:18,119 --> 00:19:20,480 Speaker 1: we don't lose track of that money that we already 356 00:19:20,520 --> 00:19:21,120 Speaker 1: started with. 357 00:19:22,240 --> 00:19:26,080 Speaker 4: So, first of all, that is your money. You don't 358 00:19:26,080 --> 00:19:28,560 Speaker 4: want to lose track of it. So there's a couple 359 00:19:28,640 --> 00:19:32,160 Speaker 4: of options that you have. You have option one, which 360 00:19:32,200 --> 00:19:38,080 Speaker 4: is leaving it with your now former employer. Option two 361 00:19:38,280 --> 00:19:41,240 Speaker 4: is you can roll it over. Let's say you have 362 00:19:41,240 --> 00:19:43,800 Speaker 4: a new employer they also offer you a four O 363 00:19:43,800 --> 00:19:47,600 Speaker 4: on K or whatever it is. Option three would be 364 00:19:47,840 --> 00:19:52,359 Speaker 4: to roll it over into your own IRA. So you 365 00:19:52,400 --> 00:19:55,920 Speaker 4: might have one that already exists, or you might open 366 00:19:56,000 --> 00:19:59,920 Speaker 4: up anyone. So those are the three options. The biggest 367 00:20:00,080 --> 00:20:04,159 Speaker 4: siding factor in what to do between those three is 368 00:20:04,960 --> 00:20:09,679 Speaker 4: what can you invest in? Depending on who the employer is, 369 00:20:09,880 --> 00:20:13,920 Speaker 4: their program might have a limited selection of investment options. 370 00:20:14,640 --> 00:20:17,040 Speaker 4: So if you know what you want to invest in, 371 00:20:17,400 --> 00:20:19,240 Speaker 4: or you have a preference in what you want to 372 00:20:19,280 --> 00:20:22,840 Speaker 4: invest in, and one of those options gives that to you, 373 00:20:23,119 --> 00:20:25,320 Speaker 4: then go with that option. I'll give you a real 374 00:20:25,359 --> 00:20:31,760 Speaker 4: life example. My partner was working and their program was 375 00:20:31,800 --> 00:20:34,480 Speaker 4: with Fidelity, and then she left that job and got 376 00:20:34,520 --> 00:20:37,919 Speaker 4: a different job and they work with Vanguard. And so 377 00:20:38,440 --> 00:20:40,280 Speaker 4: she came to me and said, what do I do? 378 00:20:41,200 --> 00:20:44,360 Speaker 4: And I looked at the funds that she was invested 379 00:20:44,359 --> 00:20:46,960 Speaker 4: in at Fidelity, and then I looked at the funds 380 00:20:47,000 --> 00:20:50,399 Speaker 4: that she would invest at Vanguard, and it looked like 381 00:20:50,560 --> 00:20:54,400 Speaker 4: it was five times more expensive for her to invest 382 00:20:54,400 --> 00:20:57,159 Speaker 4: in the Fidelity funds than the Vanguard funds, but the 383 00:20:57,200 --> 00:21:02,760 Speaker 4: return was the same. So why pay five times the 384 00:21:02,760 --> 00:21:05,440 Speaker 4: cost of something to get the same results. 385 00:21:06,240 --> 00:21:08,280 Speaker 2: So that was an easy one. 386 00:21:08,400 --> 00:21:11,360 Speaker 4: We rolled over her for a one K plan from 387 00:21:11,880 --> 00:21:16,280 Speaker 4: her old employer to her new employer. If her new 388 00:21:16,320 --> 00:21:18,879 Speaker 4: employer didn't have one or her new employer had a 389 00:21:18,920 --> 00:21:23,320 Speaker 4: worse option, then the third option would have maybe made sense, 390 00:21:23,320 --> 00:21:25,760 Speaker 4: which was to just open up her own IRA and 391 00:21:25,800 --> 00:21:30,320 Speaker 4: then roll it over there. And so, if your old 392 00:21:30,359 --> 00:21:32,920 Speaker 4: employer is giving you an option to invest in some 393 00:21:33,040 --> 00:21:38,159 Speaker 4: pretty mediocre funds that get a decent return, but they 394 00:21:38,200 --> 00:21:41,639 Speaker 4: have a really high cost, like a high management fee, 395 00:21:43,000 --> 00:21:45,359 Speaker 4: why do that when you can go to the new 396 00:21:45,440 --> 00:21:49,200 Speaker 4: employer account where the returns are higher and the cost 397 00:21:49,359 --> 00:21:52,760 Speaker 4: is lower. And so again it's a no brainer. The 398 00:21:53,000 --> 00:21:55,680 Speaker 4: difference is that it's not convenient, right. You got to 399 00:21:55,760 --> 00:21:57,920 Speaker 4: you got to put some you got to do your homework, 400 00:21:58,000 --> 00:21:59,879 Speaker 4: you gotta put Yeah, you got to put some legwork 401 00:21:59,880 --> 00:22:03,359 Speaker 4: in to operationally moving the money around. But when you 402 00:22:03,400 --> 00:22:06,560 Speaker 4: know you're going to save five times costs, I think 403 00:22:06,600 --> 00:22:08,000 Speaker 4: you'd be pretty stoked about it. 404 00:22:12,640 --> 00:22:15,800 Speaker 1: You mentioned that there's a penalty with taking things out 405 00:22:15,840 --> 00:22:18,160 Speaker 1: of your four oh one K early. Are there any 406 00:22:18,200 --> 00:22:21,879 Speaker 1: other extenuating circumstances in any of these retirement or you know, 407 00:22:22,000 --> 00:22:25,119 Speaker 1: these types of funds that allow you to take out 408 00:22:25,640 --> 00:22:29,719 Speaker 1: your money early, like for example, say buying a house. 409 00:22:30,520 --> 00:22:33,320 Speaker 4: Short answer is yes, And the reason is you want 410 00:22:33,400 --> 00:22:35,919 Speaker 4: the ability to draw on accounts at different times in 411 00:22:35,960 --> 00:22:39,800 Speaker 4: your life. For example, you come to a point where 412 00:22:39,840 --> 00:22:43,360 Speaker 4: you want to buy a house and you may say, oh, 413 00:22:43,880 --> 00:22:47,560 Speaker 4: I've just put so much money into my retirement accounts 414 00:22:47,720 --> 00:22:51,760 Speaker 4: and I can't touch them. Well, that's not entirely true. 415 00:22:52,119 --> 00:22:54,720 Speaker 4: Depending on the type of account and the structure of it, 416 00:22:55,400 --> 00:22:57,960 Speaker 4: you may have some advantages, and a roth ira is 417 00:22:58,000 --> 00:23:01,200 Speaker 4: an example of one, because any money you put in 418 00:23:01,400 --> 00:23:04,320 Speaker 4: as a contribution, you can pull that out tax free. 419 00:23:04,680 --> 00:23:06,919 Speaker 4: And it makes sense, right because that money you put in, 420 00:23:06,960 --> 00:23:09,760 Speaker 4: you already paid taxes to begin with. They can't be 421 00:23:09,800 --> 00:23:12,920 Speaker 4: double taxing you, right, So as long as you're only 422 00:23:12,960 --> 00:23:17,320 Speaker 4: pulling out what you put in, that's your cash. So 423 00:23:18,240 --> 00:23:22,720 Speaker 4: there's a down payment, and any of the earnings or 424 00:23:22,760 --> 00:23:26,399 Speaker 4: the dividends or interests that you received over those ten years, 425 00:23:26,640 --> 00:23:29,040 Speaker 4: don't touch it, leave it in the account. And that's 426 00:23:29,080 --> 00:23:32,800 Speaker 4: also accumulating for retirement, so you don't get penalized in 427 00:23:32,840 --> 00:23:36,439 Speaker 4: that case. Whereas let's say you're one of those people 428 00:23:36,480 --> 00:23:39,280 Speaker 4: who only has a four oh one K. Well, if 429 00:23:39,320 --> 00:23:41,720 Speaker 4: you only have a four to one K, you come 430 00:23:41,760 --> 00:23:43,840 Speaker 4: along this path and you're like, oh, I need money 431 00:23:43,840 --> 00:23:47,199 Speaker 4: for a down payment, Well you're going to be in 432 00:23:47,200 --> 00:23:50,119 Speaker 4: a bit of a tough situation because if that's your 433 00:23:50,119 --> 00:23:54,000 Speaker 4: only source of money, you need to take money out 434 00:23:54,000 --> 00:23:56,119 Speaker 4: before the age limit, and you get a ten percent 435 00:23:56,200 --> 00:23:58,840 Speaker 4: penalty tax on top of the taxes you're going to 436 00:23:58,880 --> 00:23:59,680 Speaker 4: pay on it already. 437 00:24:03,240 --> 00:24:06,560 Speaker 1: Jonah, this has been so enlightening and incredibly helpful. But 438 00:24:06,640 --> 00:24:08,600 Speaker 1: before I let you go, do you have any final 439 00:24:08,680 --> 00:24:11,879 Speaker 1: parting wisdom about retirement planning or even just how we 440 00:24:11,920 --> 00:24:14,399 Speaker 1: should be thinking about planning for our financial future. 441 00:24:15,480 --> 00:24:20,480 Speaker 4: If you try to do financial things based on convenience, 442 00:24:21,200 --> 00:24:25,520 Speaker 4: I wouldn't recommend it, because it's because it's when you 443 00:24:25,520 --> 00:24:31,800 Speaker 4: put the legwork in you differentiate yourself personal finance. Because 444 00:24:31,800 --> 00:24:34,720 Speaker 4: it's not very tangible and it's so far into the future, 445 00:24:35,320 --> 00:24:37,600 Speaker 4: people kind of don't bother with it. I'll give you 446 00:24:37,640 --> 00:24:41,639 Speaker 4: an example, Vanguard. You can give them your budget, how 447 00:24:41,720 --> 00:24:45,040 Speaker 4: much you plan to save, and they run that through 448 00:24:45,080 --> 00:24:49,920 Speaker 4: ten thousand different market scenarios. So it's pretty good and 449 00:24:49,960 --> 00:24:51,919 Speaker 4: it'll tell you, like, here's what you're gonna have in 450 00:24:51,920 --> 00:24:53,480 Speaker 4: this year and this year and this year and this year. 451 00:24:53,480 --> 00:24:55,560 Speaker 4: And I've been using them for like ten years now, 452 00:24:56,000 --> 00:24:58,520 Speaker 4: and they're pretty close. If I look back to each 453 00:24:58,560 --> 00:25:00,960 Speaker 4: of these last ten years, they were very very good 454 00:25:01,040 --> 00:25:04,560 Speaker 4: at forecasting where we were going to be. I can 455 00:25:04,560 --> 00:25:06,239 Speaker 4: look thirty years down the road and see where I'm 456 00:25:06,240 --> 00:25:10,000 Speaker 4: going to be. I mean that's like, that's empowering. 457 00:25:15,840 --> 00:25:18,719 Speaker 1: Okay, So here are some of the major takeaways that 458 00:25:18,760 --> 00:25:22,920 Speaker 1: we have learned today. First, start early. It's going to 459 00:25:23,000 --> 00:25:24,879 Speaker 1: help you in the long run. And even if you 460 00:25:24,920 --> 00:25:26,880 Speaker 1: start with just a small amount that you're putting away 461 00:25:26,920 --> 00:25:29,440 Speaker 1: for retirement every day in your twenties, it's going to 462 00:25:29,520 --> 00:25:31,199 Speaker 1: mean that there's a lot less you have to do 463 00:25:31,320 --> 00:25:34,240 Speaker 1: later on in life in your forties, fifties, and even sixties. 464 00:25:34,640 --> 00:25:38,439 Speaker 1: So even if it's a small amount, start now. We 465 00:25:38,600 --> 00:25:41,920 Speaker 1: also learned that we want to diversify. It's super important 466 00:25:41,920 --> 00:25:44,960 Speaker 1: to have more than one type of retirement account. So 467 00:25:45,080 --> 00:25:46,760 Speaker 1: even if you already have a four to oh one 468 00:25:46,840 --> 00:25:50,320 Speaker 1: K set up with your company, consider opening a roth ira, 469 00:25:50,600 --> 00:25:54,119 Speaker 1: which has different tax benefits. We also learned about matching, 470 00:25:54,280 --> 00:25:56,800 Speaker 1: and that's when your company basically gives you free money 471 00:25:56,840 --> 00:25:59,439 Speaker 1: to retire. So if you have a matching program for 472 00:25:59,440 --> 00:26:02,280 Speaker 1: your fourroh one, make sure you're taking advantage of it. 473 00:26:02,400 --> 00:26:05,080 Speaker 1: Don't leave that money on the table. And finally, do 474 00:26:05,160 --> 00:26:07,960 Speaker 1: your homework and make sure you're setting up a budget, 475 00:26:08,200 --> 00:26:10,720 Speaker 1: seek out free financial planning tools. Those are a great 476 00:26:10,760 --> 00:26:12,760 Speaker 1: way to start figuring out how much you should be 477 00:26:12,800 --> 00:26:16,960 Speaker 1: saving now. This is a production from iHeartRadio. 478 00:26:17,160 --> 00:26:19,280 Speaker 2: Our executive producers are Molly. 479 00:26:19,080 --> 00:26:22,480 Speaker 1: Soosha and Matt Stillo. This episode was engineered by Matt 480 00:26:22,560 --> 00:26:23,359 Speaker 1: Stillo and. 481 00:26:23,359 --> 00:26:27,120 Speaker 2: Written by Molly Sooshia. Special thanks to the Ruby team 482 00:26:27,200 --> 00:26:31,720 Speaker 2: at iHeart, including Ethan Fixel, Rachel Swan Krasnov, Amber Smith, 483 00:26:31,800 --> 00:26:35,920 Speaker 2: Nikkia Swinton, Sierra Kaiser, Sierra Spreen, and Andy Kelly.