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Speaker 1: Welcome to How to Money. I'm Joel, I'm Matt. Today

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Speaker 1: we're answering your listener questions.

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Speaker 2: Happy Monday, everybody, and we are glad that you are

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Speaker 2: rejoining us for and ask How to Money episode where

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Speaker 2: we're going to hear directly from all of you wonderful

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Speaker 2: listeners out there. Joel, we're going to talk about something

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Speaker 2: brand new, the PSALM rule. This is not something we've

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Speaker 2: ever talked about on the show, at least it's not

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Speaker 2: something that I remember.

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Speaker 3: I don't think so.

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Speaker 1: I love having talked about breaking new ground new. Yeah,

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Speaker 1: it's like the new frontier first finance, and this rule

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Speaker 1: has actually not been around all that long, but it's

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Speaker 1: gained that is true, a.

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Speaker 2: Lot of credibility, I guess as of late. But we'll

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Speaker 2: see how that should impact how it is that you invest.

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Speaker 2: We're going to talk about this new app out there

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Speaker 2: that is going to help kids to say, for retirement,

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Speaker 2: it's going to be a way that they're going to

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Speaker 2: be able to become easy millionaires, Joel. Easy, that's the promise,

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Speaker 2: at least promise. Another listener is asking what he should

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Speaker 2: be doing about some big out of the ordinary expenses

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Speaker 2: he's got these looming items on the horizon, and he's

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Speaker 2: asking for our advice. We'll get to those plus more

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Speaker 2: during our.

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Speaker 3: Episode today, Buddy.

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Speaker 1: Yeah, but before we get to listener questions, maybe we

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Speaker 1: should get to a warning from a listener, Matt, we

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Speaker 1: had an email from listener Sam and he was happy

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Speaker 1: for us to divulge this to the rest of the

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Speaker 1: Had Money audience, which I really appreciate because I think

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Speaker 1: sometimes when you do something that's ill advised, it's easy

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Speaker 1: to feel shame or guilt and you're like, man, you know,

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Speaker 1: I just cover this thing up and not tell anyone.

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Speaker 1: But the thing is when you tell people, then they

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Speaker 1: can avoid stepping in the same hole. And this is

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Speaker 1: this is a potential pitfall I think for people.

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Speaker 2: Was it like that one time you spent your family

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Speaker 2: inheritance and you blew it all in one day in Vegas? Yeah,

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Speaker 2: you didn't want to talk about that right here on

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Speaker 2: the show.

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Speaker 3: Very shamed of that.

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Speaker 1: So this one is particularly when Sam was trying to

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Speaker 1: get his passport renewed, and so instead of going to

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Speaker 1: the State Department's website, he does a Google search instead,

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Speaker 1: like you do, or like you used to do. The

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Speaker 1: millennials do.

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Speaker 3: Change in the game. But yeah, and.

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Speaker 1: So he found himself going through all the steps to

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Speaker 1: renew the passport and then realizes after the fact that

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Speaker 1: he spent way too much. And then he went through

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Speaker 1: a third party website. So not a scam, fortunately, but

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Speaker 1: he did pay more than he needed to in order

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Speaker 1: to get his passport renewed because of the sponsored posts

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Speaker 1: that pop up at the very beginning when you do

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Speaker 1: that Google search. So just I think that is a

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Speaker 1: good warning. I think we're all so used to granted,

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Speaker 1: fewer people doing Google searches now googling does it feels

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Speaker 1: like something your grandparents did, I guess, even though I

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Speaker 1: still do it. But yeah, I think that is worth

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Speaker 1: mentioning that what pops up in the sponsored results is

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Speaker 1: not always going to be what's best for you. Sometimes

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Speaker 1: it will lead you astray, in particularly in the case

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Speaker 1: of renewing your passport, making sure you're actually at the government,

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Speaker 1: the dot gov website instead of some other website that

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Speaker 1: will maybe help you. They're gonna help you for a

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Speaker 1: big fee.

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Speaker 2: Well, and in his case, like he was paying more

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Speaker 2: than double and he sent over a screenshot. And what

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Speaker 2: I think is maybe most nefarious about This was the

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Speaker 2: first line item when they talied up the expenses was

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Speaker 2: the renewal fee, which sounds like, oh, yeah, that's what

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Speaker 2: I'm doing. I am renewing the fee. But then there's

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Speaker 2: another charge for basically the same amount, right, it's like

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Speaker 2: another one hundred and thirty bucks that says or that's

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Speaker 2: listed out for the State Department. And so you don't

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Speaker 2: question that one because you're like, well, yeah, I yes,

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Speaker 2: I am renewing my passport. But then you see the

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Speaker 2: State Department and you're like, well that seems like a lot,

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Speaker 2: but it says State Department. This is going straight to

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Speaker 2: the government, so okay. But what you don't know is

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Speaker 2: that that first fee is the one that they have

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Speaker 2: tacked on the quote unquote renewal fee, and there's like

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Speaker 2: some sort of code, some number and letter out beside.

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Speaker 2: It makes it seem technical and totally official. And I

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Speaker 2: think that that's just a slight oh yeah way that

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Speaker 2: they that they are able to dupe folks into thinking, oh, well,

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Speaker 2: this must be the case, because I'm not going to

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Speaker 2: question the State Department.

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Speaker 1: It's almost like the letters you get the mail that

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Speaker 1: have the perforated edges and they have like an open

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Speaker 1: immediately sort of.

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Speaker 3: Thing, and maybe there's going to be a check in there, a.

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Speaker 1: Check or you feel like it's some sort of bill

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Speaker 1: that you have to pay, like upon receipt and then

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Speaker 1: it's like some sort of official Yeah, it's actually Hello Fresh,

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Speaker 1: like advertisement or something like that.

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Speaker 4: There.

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Speaker 1: Dude, it is like the kinds of things that they're

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Speaker 1: the way that they try to get you, trying to

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Speaker 1: make you open the mail, and it just frustrates me

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Speaker 1: even more and I just throw the crap away. Yeah,

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Speaker 1: but yeah, hate that Sam had to go through that,

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Speaker 1: But bufilly, the good news is is that he was

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Speaker 1: able to go back and get a refund, and he

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Speaker 1: was actually worried about from a identity information standpoint as well,

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Speaker 1: so he actually.

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Speaker 2: He flagged it with his credit card company, went and

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Speaker 2: froze all of his accounts because he was afraid that

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Speaker 2: they might be an even more shady third party operator

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Speaker 2: that might sell.

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Speaker 3: His information, which who knows.

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Speaker 2: I mean, when you operate under that kind of pretense,

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Speaker 2: I wouldn't put it past them, honestly that something like

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Speaker 2: that might end up in the dark web. I think

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Speaker 2: Sam was taking all the right steps to ensure that

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Speaker 2: his data and his money is going.

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Speaker 3: To be safe.

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Speaker 1: Yeah, smart man. Forward, smart man for doing that. And

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Speaker 1: we'll link to in the show notes in article or

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Speaker 1: two about freezing your credit, it's really important. It's totally

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Speaker 1: free thanks to federal law and super easy, and you

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Speaker 1: don't have to do something like accidental that might have

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Speaker 1: released some of your information to freeze your credit. It's

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Speaker 1: best to do it proactively. And Matt usually at this

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Speaker 1: point in time, we're introducing a beer, but we're recording

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Speaker 1: in the AM and we're not like that, so we're

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Speaker 1: gonna drink some coffee on today's Also, specifically, this is

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Speaker 1: a brew, so I did a little V sixty four

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Speaker 1: over for both of us.

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Speaker 2: So it's what I always do here in the office.

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Speaker 2: But for you, you're a fan of the espresso pod,

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Speaker 2: which is I do as it comes to the different pods,

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Speaker 2: the better of the options out there. Oh, I will

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Speaker 2: still going to compare though to a nice methodical brew

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Speaker 2: specifically out of out of Greenville.

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Speaker 1: But for people who are in an espresso and you

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Speaker 1: can come at me if you think I'm wrong. But

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Speaker 1: I have tried some of the alternative, less expensive pods.

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Speaker 1: None of them hold up. Yeah, some people say that

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Speaker 1: Pete's that's the only other one that's closed. But Espresso

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Speaker 1: pods are the best. You just have to wait for sale,

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Speaker 1: so you go. Do not get the other brands. They're

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Speaker 1: not very good.

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Speaker 2: Do you even't tried like refilling them or anything like that.

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Speaker 2: Like some of the better for the environment is the

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Speaker 2: cig They've got the reusable canisters where you can like

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Speaker 2: pack it in there like you're packing a bowl in

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Speaker 2: an old man's pipe. And if that's how I always

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Speaker 2: picture it.

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Speaker 1: I don't know if Espresso has the refillables or not,

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Speaker 1: but they're too small.

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Speaker 3: I don't even know how you would go about doing that. Yeah,

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Speaker 3: but I'll look into it.

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Speaker 2: Maybe we'll actually share our thoughts on this coffee at

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Speaker 2: the end of the end of the OtherSide. But this

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Speaker 2: won't be something that we did do here on the podcast.

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Speaker 1: That's right. We we love beer. But Matt, let's get

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Speaker 1: to list our questions, specifically one about recessions and the

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Speaker 1: likelihood of one occurring.

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Speaker 4: Hey, guys, this is right from Wyoming. Let me start

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Speaker 4: off by saying that listening to your December second episode,

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Speaker 4: you guys mentioned a concern for possible tuxoplasmosis and exposure

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Speaker 4: to cats probably not something you have to be concerned about,

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Speaker 4: given most of us get exposed to it at some

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Speaker 4: point and have very mild symptoms, especially if you have

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Speaker 4: a decent immune system. Not medical advice in the same

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Speaker 4: way that you guys don't give financial advice. The reason

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Speaker 4: why I'm calling in today is I had heard in

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Speaker 4: a different podcast, Not to sound unfaithful or anything, but

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Speaker 4: we had met the criteria for the soam rule, meaning

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Speaker 4: that we are entering a recession. Would this be something

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Speaker 4: that you would take into account? So we were discussing

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Speaker 4: paying down some debt that we have versus investing, and

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Speaker 4: if we're possibly entering a recession, wouldn't it make more

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Speaker 4: sense to focus on paying down debt versus investing at

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Speaker 4: this time? Thank you so much. I know time meaning

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Speaker 4: the market is not as good as time in the market,

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Speaker 4: but just looking for things to help make decisions in

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Speaker 4: the future.

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Speaker 1: Well, I can breathe this sigh of relief. I'm less

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Speaker 1: frightened of my cats now, I'm still frightened of your cats.

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Speaker 2: I don't like it because they're always just so suspicious,

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Speaker 2: Like you walk in the house and they kind of

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Speaker 2: look at you. Like, who are you? This is my territory.

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Speaker 2: You know, you're like a yeah, you're seen as a threat.

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Speaker 2: You weren't actually worried about.

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Speaker 1: No, Toxo was one of my friends has also has

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Speaker 1: two cats, and we were joking about how we're not

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Speaker 1: cat people, but we like her cats. And I think

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Speaker 1: there's a difference in the kind of person who is

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Speaker 1: a cat person, like in the person who just has

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Speaker 1: cats and enjoys something.

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Speaker 2: Word on the street is that once you actually get

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Speaker 2: toxic plasmasis you become a cat person because it messes

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Speaker 2: with your head and all of a sudden, you think

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Speaker 2: there's no limit to how many cats you should have

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Speaker 2: under your rooms.

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Speaker 1: You literally turn into catwoman or something that did yoe,

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Speaker 1: what did y'all get your cats?

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Speaker 3: Did you get them from the shelter?

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Speaker 1: Yeah, there's a shelter close by that we got them from.

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Speaker 4: I wonder, like.

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Speaker 2: Revisit the shelter and like, look at some of the

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Speaker 2: other kidies. No, no, yeah, I have no desire. What

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Speaker 2: do you think about Riker? By the way, listening to

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Speaker 2: the other personal finance or investing podcasts.

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Speaker 1: It does sound like cheating. Well, I guess we'll let

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Speaker 1: them off this time.

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Speaker 2: Yeah, well right, let's first talk about the Psalm rule,

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Speaker 2: which is so let's go ahead and find her for folks,

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Speaker 2: this is just a nerdy recession predictor that was developed

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Speaker 2: about five years ago that I'm going to guess the

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Speaker 2: vast majority of How to Money listeners likely don't know

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Speaker 2: anything about. And there's good reason to that that we'll

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Speaker 2: get to. But we only learned about it this past

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Speaker 2: summer when there were a few articles out there there. Honestly,

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Speaker 2: there's a whole lot of art. It was being written

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Speaker 2: about all over the place when the rule was triggered.

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Speaker 2: And what it monitors is a fairly rapid increase in

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Speaker 2: the unemployment rate. And so basically, if the most recent

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Speaker 2: three months have seen half a percent increase in unemployment,

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Speaker 2: it's supposed to be a direct indicator of an upcoming recession.

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Speaker 2: So you better you know, hold on to your hat. Basically,

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Speaker 2: it's measuring speed in velocity. So it's not saying, hey,

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Speaker 2: the unemployment rate increased five months straight. It's saying, well,

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Speaker 2: at what speed is the unemployed unemployment rate increasing? And

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Speaker 2: that is kind of the warning shot across the bow

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Speaker 2: that a recession might be close at hand right, And

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Speaker 2: there are other potential recession indicators that people point to

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Speaker 2: as well, right, And.

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Speaker 3: The truth is they don't always work.

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Speaker 1: And actually, the inventor of the Psalm rule, Claudia Sam,

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Speaker 1: she actually doesn't think we're in a recession.

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Speaker 3: Named for herself.

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Speaker 1: That's right, which any good person does. That's the large

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Speaker 1: guard rule, okay, and you will abide by it. But

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Speaker 1: she has basically said in some recent interviews is that

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Speaker 1: the likelihood has increased, but that doesn't necessarily mean that

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Speaker 1: we are in or headed towards a full blown recession.

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Speaker 1: It's it's a helpful indicator, but it's not like gospel truth,

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Speaker 1: I think. And the truth is too that we kind

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Speaker 1: of went through an unprecedented period in the American economy

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Speaker 1: with kind of COVID supply chain shops and the bounce back,

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Speaker 1: and so it's really hard, I think, to use so

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Speaker 1: called rules that were in place for an unprecedented period

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Speaker 1: of economic history in America. Unemployment was at historical clothes,

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Speaker 1: and yes there has been an uptick in unemployments, but

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Speaker 1: the overall employment situation in this country is still overall

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Speaker 1: I would say, close to excellent.

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Speaker 3: Totally agree.

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Speaker 2: I think we forget how massive of a shock the

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Speaker 2: economy took when all the lockdowns happened and literally nothing

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Speaker 2: was happening, and we saw obviously unemployment skyrocket. But then

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Speaker 2: right after that, what do we know what happened? We

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Speaker 2: started flooding the system. The government started flooding the system

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Speaker 2: with cash, and so okay, let's hire a bunch of folks.

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Speaker 2: Everyone's got all the money on hand. And I think

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Speaker 2: what we've seen over the past few years again just

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Speaker 2: so insane. And it's hard to look to a rule

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Speaker 2: like you said, like that was created back in twenty nineteen,

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Speaker 2: which is pre pan and say that, oh, this is

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Speaker 2: going to apply to anything that is closely affected at all,

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Speaker 2: like anything that is in near proximity to something as

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Speaker 2: significant as the pandemic and the impact that it had

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Speaker 2: on the economy.

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Speaker 1: And let's say, I mean when you look at when

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Speaker 1: the rule was triggered, I guess what at the end

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Speaker 1: of summer. And if you had said, oh, I'm taking

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Speaker 1: this as a recession indicator, and I'm going to change

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Speaker 1: my investing style proactively in order to hopefully avoid on

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Speaker 1: losses that I think are incoming, well you would have

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Speaker 1: missed out on some stellar returns over the rest of

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Speaker 1: twenty twenty five, So I think you're right, Matt. I

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Speaker 1: think unprecedented is typically a difficult word to use when

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Speaker 1: we're talking about stock market and we have a lot

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Speaker 1: of history to go on, but we did live through

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Speaker 1: something that was kind of unprecedented, and so I think

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Speaker 1: we have to take that into accounts totally. And I

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Speaker 1: think we also just because these indicators are flashing some

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Speaker 1: red lights, it doesn't necessarily even mean that we should

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Speaker 1: be making significant changes to how we act.

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Speaker 3: Totally agree.

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Speaker 2: I think this is just more of the economy and

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Speaker 2: things like unemployment returning to the new normal. But Riker

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Speaker 2: specifically isn't talking about selling positions. He's just talking about

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Speaker 2: reallocating dollars to debt as opposed to investing, which I

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Speaker 2: will say is less of a knee jerk response. I

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Speaker 2: would say that that's more of a just like a

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Speaker 2: keep calm kind of interpretation of the some rule being triggered.

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Speaker 1: Stiff British utter lip, yeah, which I don't think Riker

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Speaker 1: is British, but it takes some of that sensibility. I

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Speaker 1: could see him doing that, and so our answer comes

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Speaker 1: less down to the some rule or the likelihood of

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Speaker 1: upcoming recession, and it has more about what kind of

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Speaker 1: debt Riker is looking to get rid of. And so

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Speaker 1: if this is credit card debt, then one hundred percent yes,

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Speaker 1: it doesn't matter what's going on in the economy. Do

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Speaker 1: you pay that you pay off that consumer debt secially

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Speaker 1: with rates where they are now.

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Speaker 2: But if he's talking about mortgage debt, well no, I

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Speaker 2: would say if it's something with an in between interest rate, like,

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Speaker 2: that's where it starts to get tricky. And I'm guessing

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Speaker 2: that's where Riker is right. Maybe he's got something He's like, oh,

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Speaker 2: that's at the that seven percent range.

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Speaker 3: Always that shades of very range.

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Speaker 2: It makes it difficult, like we would still want you

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Speaker 2: to get the four one k match and then beyond that,

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Speaker 2: I personally feels me, I'd be like, all right, maybe

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Speaker 2: we want to focus on debt in the coming years.

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Speaker 1: Yeah, I think they're both good options. But here's the

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Speaker 1: other thing. If we are entering a recession, it might

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Speaker 1: be true we're not predicting one. And let's say the

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Speaker 1: stock market does have a rough year or two soon

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Speaker 1: because of a recession and the aftermath of a recession

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Speaker 1: that would actually be a bad time to not be investing,

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Speaker 1: and I think that's important to highlight. The ideal would

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Speaker 1: be to buy more shares as they become cheaper, And

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Speaker 1: the truth is, the younger you are, the more this

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Speaker 1: represents a buying opportunity.

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Speaker 4: Matt.

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Speaker 1: When we talk about recessions and stock market declines, oftentimes

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Speaker 1: we're talking about greater turmoil in the economy, potential job loss.

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Speaker 1: But for people listening to How to Money, who let's

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Speaker 1: say they are in the good position financially, they have

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Speaker 1: enough savings on hand and their job is secure, being

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Speaker 1: able to continue to buy, as our friend Nick MagillI puts,

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Speaker 1: to just keep buying the whole way through, that actually

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Speaker 1: represents a better scenario for you. Should almost be like

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Speaker 1: hoping for stock market declines the younger you are, so

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Speaker 1: that you can buy more shares at a reduced price.

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Speaker 2: Yeah, it's counterintuitive, and I think it's something that folks

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Speaker 2: tend to struggle with, But young folks should actually be

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Speaker 2: praying for stock market pullbacks. Your parents aren't praying for that,

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Speaker 2: as they're starting to rely on those invested dollars. But

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Speaker 2: as folks who have decades of letting our investments. Ride

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Speaker 2: should be hoping for these pullbacks in order to be

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Speaker 2: able to buy at lower prices where you're stretching your

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Speaker 2: investment dollars. Further, I think there are times when other

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Speaker 2: priorities might take place, and you know, you do invest

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Speaker 2: less to accelerate other goals that you might have, But

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Speaker 2: choosing to invest less because of a downturn that might

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Speaker 2: be on the way, I don't think that is a

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Speaker 2: good strategy, certainly not a strategy that we would endorse.

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Speaker 2: And by your logic, I would even say, if you

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Speaker 2: are expecting sort of like you said, Joel, like you

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Speaker 2: want to continue to invest, I would even say that,

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Speaker 2: like if you know, And that's the thing nobody knows,

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Speaker 2: Like we don't know the future. But if you truly

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Speaker 2: believe that the recession was imminent, what would you do?

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Speaker 2: Like what I would do is I would continue to

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Speaker 2: save up that cash and then be able to and

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Speaker 2: then pull the trigger, let's say in a year like

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Speaker 2: after the market has tanked, knowing that I'm going to

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Speaker 2: get all of my dollars in at the lowest possible price.

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Speaker 2: But who knows the future. Nobody does, which is why,

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Speaker 2: like you said, Joel, we always advise for folks to

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Speaker 2: continue investing no matter what.

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Speaker 1: And that's the thing that you and I have said

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Speaker 1: over and over and over on the show, like we

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Speaker 1: can't predict a recession. But the truth is nobody can.

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Speaker 1: And that's why there's so many goofy sayings about that,

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Speaker 1: Like economists are correctly predicted ten out of the last

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Speaker 1: three recessions. It's just because there's always a looming threat,

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Speaker 1: and there are always people making headlines and the perma bears.

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Speaker 1: The people who are pessimists typically get the most press.

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Speaker 1: The people who say I'm pretty sure the or the

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Speaker 1: even the people who overemphasize what the market might do

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Speaker 1: typically you know, the average return sort of folks, they don't.

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Speaker 1: It's kind of boring, right, Yeah, it's not all that sexy.

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Speaker 3: It doesn't sell.

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Speaker 1: Yeah, And so those kinds of folks are not going

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Speaker 1: to they're the most accurate over time, but they're not

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Speaker 1: going to get the most pressed. And so the truth

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Speaker 1: is just continuing to do the right thing over and

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Speaker 1: over despite what's going on in the headlines and despite

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Speaker 1: what's even happening on the ground, like what's happening with

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Speaker 1: the macroeconomy and the stock market specifically, that's going to

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Speaker 1: be the right move over the years and decades.

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Speaker 3: Totally agree.

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Speaker 2: Yeah, there's something funny about those who are constantly con

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Speaker 2: for recession that they seem wise, and folks who are

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Speaker 2: calling who take more of an optimistic route, that they

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Speaker 2: are seen as reckless. Yeah, even though it's quite counter

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Speaker 2: to that when you look at history. But Joe, we've

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Speaker 2: got more to get to. We are going to get

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Speaker 2: to that app that is going to easily allow you

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Speaker 2: to turn your kids into millionaires.

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Speaker 3: We'll get to that more right after this.

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Speaker 1: All right, we're back, Matt. We've got more listener questions

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Speaker 1: to get to. Let's get some one now about financial

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Speaker 1: advisors and whether or not this listener needs one.

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Speaker 5: Hey, Matt and Joel, this is Max. I'm twenty one

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Speaker 5: from Sunny San Diego. I've been listening to the podcast

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Speaker 5: for years and I love it. Thank you so much

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Speaker 5: for your content. So I have a kind of unique situation.

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Speaker 5: My father passed away and my brother and I got

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Speaker 5: an inheritance from him. I was sixteen at the time,

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Speaker 5: so we opted to use a financial advisor that a

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Speaker 5: family friend recommended. While he's been great, he has been

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Speaker 5: advising me not to fund my roth IRA that I

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Speaker 5: opened with him when I was nineteen. I am currently

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Speaker 5: in money gear number five, my personal finance journey outside

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Speaker 5: of my inheritance. My question to you is should I

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Speaker 5: open up my own roth I ray at a different bank,

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Speaker 5: and if so, what should I do with my old one?

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Speaker 6: Thank you so much, guys.

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Speaker 3: Max.

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Speaker 2: First off, we are so sorry about the loss of

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Speaker 2: your dad. Based on the age that you said you

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Speaker 2: received that inheritance, it sounds like it's been about five years,

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Speaker 2: but even still, man to lose a parent in your

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Speaker 2: teens sounds pretty horrendous.

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Speaker 1: I'm sure I can't imagine.

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Speaker 2: Yeah, no amount of inheritance can make up for it.

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Speaker 2: But the good news she is twenty one years old,

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Speaker 2: sounds like she's been listening to the show for years,

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Speaker 2: which means from a financial standpoint, she is like like

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Speaker 2: light years ahead of so many people when it comes

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Speaker 2: to thinking about their future, their financial situation.

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Speaker 1: I'm always fascinated by people who are, like, I don't know,

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Speaker 1: teens or early twenties who are listening to this show,

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Speaker 1: or who are curious about personal finance and have kind

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Speaker 1: of gotten into it for an extended period of time

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Speaker 1: and have started making moves because it's rare. It's so rare.

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Speaker 1: It's usually the average American and I think starts thinking

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Speaker 1: about money at forty and so to be doing that

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Speaker 1: twenty years earlier than everyone else or even longer. I mean,

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Speaker 1: we've had listeners who were twelve or thirty weeks reach

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Speaker 1: out and it's so impressive because it does mean that

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Speaker 1: you've got so much more time to accelerate progress. And

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Speaker 1: it just means that you don't have to go quite

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Speaker 1: as hard or even nearly as hard later on in

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Speaker 1: your life.

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Speaker 2: You just that's what's so cool, is like you can

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Speaker 2: like lead a pretty normal life at a young age

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Speaker 2: and just start the ball rolling and doing some smart things.

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Speaker 2: You don't have to do anything crazy. You don't have

439
00:19:34,320 --> 00:19:36,399
Speaker 2: to be some how to money adherent, you don't have

440
00:19:36,440 --> 00:19:38,399
Speaker 2: to be a fire adherent or anything like that. But

441
00:19:38,440 --> 00:19:40,280
Speaker 2: you can just make some small tweaks that are going

442
00:19:40,359 --> 00:19:41,359
Speaker 2: to completely set you apart.

443
00:19:41,400 --> 00:19:43,399
Speaker 1: And it doesn't mean that it's not possible to achieve

444
00:19:43,440 --> 00:19:45,359
Speaker 1: financial independence if you start at forty or fifty. It

445
00:19:45,400 --> 00:19:47,560
Speaker 1: just means it's a lot easier when you start earlier.

446
00:19:48,200 --> 00:19:50,879
Speaker 1: But yeah, Max, it sounds like this advice from your

447
00:19:50,880 --> 00:19:54,040
Speaker 1: advisor could really do some harm to your finances, So

448
00:19:54,240 --> 00:19:58,600
Speaker 1: I don't like the suggestion of not contributing to your

449
00:19:58,680 --> 00:20:02,359
Speaker 1: rough Ira. Lot of red flags went up listening to

450
00:20:02,640 --> 00:20:05,720
Speaker 1: yes Max's voice memorick, I would be curious to know

451
00:20:05,800 --> 00:20:08,600
Speaker 1: his rationale behind this, and in your email he said

452
00:20:08,600 --> 00:20:11,400
Speaker 1: it's because that money would likely go to your successors,

453
00:20:11,520 --> 00:20:14,439
Speaker 1: which is interesting. It's hard to know that when you're

454
00:20:14,440 --> 00:20:17,520
Speaker 1: only twenty one years old, and I just can't think

455
00:20:17,640 --> 00:20:20,920
Speaker 1: of many great reasons to avoid investing in a roth

456
00:20:20,960 --> 00:20:24,119
Speaker 1: ira at your age. Typically in those years, you are

457
00:20:24,200 --> 00:20:27,160
Speaker 1: less concerned with avoiding tax, and you should be more

458
00:20:27,200 --> 00:20:30,000
Speaker 1: willing to pay tax now in order to avoid it

459
00:20:30,400 --> 00:20:32,040
Speaker 1: for the rest of your life all the way down

460
00:20:32,080 --> 00:20:34,960
Speaker 1: the road. And that's exactly when a roth ira lets

461
00:20:34,960 --> 00:20:37,840
Speaker 1: you do right without having all the facts, we think

462
00:20:37,880 --> 00:20:40,640
Speaker 1: the wroth is likely your best bet. Yeah, because then

463
00:20:40,720 --> 00:20:44,560
Speaker 1: you get decades of compounding returns that aren't taxed at all,

464
00:20:45,200 --> 00:20:47,399
Speaker 1: which is clutch. That's why the roth Ira, especially for

465
00:20:48,040 --> 00:20:51,480
Speaker 1: younger people and people who have not reached peak earning years,

466
00:20:51,760 --> 00:20:52,960
Speaker 1: it's almost a no brainer.

467
00:20:53,080 --> 00:20:55,840
Speaker 2: Absolutely, and something else we have to discuss, and I'm

468
00:20:55,880 --> 00:20:58,120
Speaker 2: sure Jill you're just letting me take this one because

469
00:20:58,160 --> 00:21:01,000
Speaker 2: you knew i'd get to it. But Max mentioned moving

470
00:21:01,040 --> 00:21:03,720
Speaker 2: the wrath from being with her advisor to being with

471
00:21:03,880 --> 00:21:04,359
Speaker 2: a bank.

472
00:21:04,640 --> 00:21:08,320
Speaker 3: Oh yeah, I don't like that either. No, banks and

473
00:21:08,480 --> 00:21:11,120
Speaker 3: investment accounts are like oil and water. They do not mix.

474
00:21:11,480 --> 00:21:13,439
Speaker 2: Instead, what we would recommend is to opt for one

475
00:21:13,440 --> 00:21:18,320
Speaker 2: of our favorite low cost brokerage firms like Vanguard, Fidelity, Schwab.

476
00:21:18,960 --> 00:21:20,880
Speaker 3: And they're one of our favorites, not.

477
00:21:20,840 --> 00:21:23,719
Speaker 2: Because we receive any sort of kickback, but because they

478
00:21:23,720 --> 00:21:26,639
Speaker 2: are truly the best. They have the lowest costs associated

479
00:21:26,680 --> 00:21:30,199
Speaker 2: with their investments, even Robinhood and Betterment. I mean, there

480
00:21:30,200 --> 00:21:32,920
Speaker 2: are two other great options. But by doing that, you're

481
00:21:32,920 --> 00:21:35,640
Speaker 2: gonna be able to reduce the fees that you pay,

482
00:21:35,920 --> 00:21:39,480
Speaker 2: and when you invest, it's gonna be like it's gonna

483
00:21:39,480 --> 00:21:40,920
Speaker 2: feel like having the wind at your back, I think,

484
00:21:40,960 --> 00:21:43,080
Speaker 2: compared to maybe what you've been experiencing there with your

485
00:21:43,080 --> 00:21:43,960
Speaker 2: financial advisor.

486
00:21:44,240 --> 00:21:46,080
Speaker 3: Because I think, Joe.

487
00:21:46,280 --> 00:21:47,760
Speaker 2: Like you were saying, I can't think of any reason

488
00:21:47,800 --> 00:21:49,840
Speaker 2: why your advisor would tell you not to invest in

489
00:21:50,119 --> 00:21:52,920
Speaker 2: a roth Ara. I can think of one, because getting

490
00:21:52,960 --> 00:21:55,399
Speaker 2: there's a good chance that advisor is pointing her to

491
00:21:55,440 --> 00:21:58,240
Speaker 2: products that he receives a commission on whether it's a like,

492
00:21:58,240 --> 00:22:00,360
Speaker 2: whether it's frontloaded, or whether it's just an on going

493
00:22:00,359 --> 00:22:04,520
Speaker 2: expense ratio that's higher as opposed to something that's no cost,

494
00:22:04,600 --> 00:22:07,600
Speaker 2: let's say, with fidelity. Yeah, I think there could be

495
00:22:07,600 --> 00:22:08,880
Speaker 2: a conflict of interest here.

496
00:22:08,760 --> 00:22:10,600
Speaker 1: Sure, And that is one of the things you have

497
00:22:10,600 --> 00:22:13,320
Speaker 1: to watch out for when you have a financial advisor

498
00:22:13,359 --> 00:22:15,840
Speaker 1: is what are the incentives? How much are they getting paid,

499
00:22:15,880 --> 00:22:18,000
Speaker 1: How are they getting paid? Those are really crucial questions.

500
00:22:18,240 --> 00:22:20,439
Speaker 1: And Matt, you mentioned banks real quick. I think it's

501
00:22:20,480 --> 00:22:24,359
Speaker 1: important just to highlight that banks and insurance companies often

502
00:22:24,440 --> 00:22:29,120
Speaker 1: have investment arms. Oh you can go with Oh, it's possible,

503
00:22:29,119 --> 00:22:32,439
Speaker 1: but you never should. I guess there's the rare exception,

504
00:22:32,600 --> 00:22:35,679
Speaker 1: maybe for an online bank that has a solid investing

505
00:22:36,280 --> 00:22:38,120
Speaker 1: portion of what they do, but for the most part,

506
00:22:39,160 --> 00:22:41,840
Speaker 1: avoid investments with banks. Going back to the advisor thing,

507
00:22:42,119 --> 00:22:43,880
Speaker 1: I think this means it might be time to break

508
00:22:43,960 --> 00:22:46,440
Speaker 1: up with your advisor and to move your current investment

509
00:22:46,480 --> 00:22:49,200
Speaker 1: accounts that you have with him to take them elsewhere.

510
00:22:49,520 --> 00:22:51,920
Speaker 1: I would, not, knowing all the details here, I would

511
00:22:51,920 --> 00:22:54,399
Speaker 1: seriously consider that this advice. If it's the tip of

512
00:22:54,440 --> 00:22:57,600
Speaker 1: the Iceberg. It makes me worried about Yes, other advice exactly, Max,

513
00:22:57,680 --> 00:23:00,800
Speaker 1: My beginning so much depends on how much money you inherited,

514
00:23:00,840 --> 00:23:03,720
Speaker 1: how complicated it's going to be for you moving forward.

515
00:23:03,880 --> 00:23:06,480
Speaker 1: But I would at least want to get a second opinion, Matt.

516
00:23:06,480 --> 00:23:09,800
Speaker 1: When we go to the hospital for a medical procedure,

517
00:23:10,119 --> 00:23:11,720
Speaker 1: we will get an opinion, and then we're like, wait

518
00:23:11,720 --> 00:23:13,960
Speaker 1: a second, I just want to make sure that this

519
00:23:14,119 --> 00:23:15,920
Speaker 1: doctor knows what they're talking about. I'm going to go

520
00:23:15,920 --> 00:23:17,359
Speaker 1: down the street and get a second opinion. I just

521
00:23:17,359 --> 00:23:19,080
Speaker 1: want someone else to look this over too, before I

522
00:23:19,119 --> 00:23:22,159
Speaker 1: go forward to some radical surgery or something like that.

523
00:23:22,240 --> 00:23:24,520
Speaker 2: Right, Yeah, for something small, you're kind of like, Okay,

524
00:23:24,640 --> 00:23:26,440
Speaker 2: I need to take some medicine to get over this

525
00:23:27,000 --> 00:23:29,240
Speaker 2: cold or flu that everyone had a couple of weeks ago. Sure,

526
00:23:29,440 --> 00:23:31,320
Speaker 2: but yeah, if they're like, oh, you need to amputate

527
00:23:31,320 --> 00:23:33,640
Speaker 2: your foot, it's like, whoa wait a minute, let's.

528
00:23:33,440 --> 00:23:34,000
Speaker 3: Come someone first.

529
00:23:34,000 --> 00:23:35,960
Speaker 2: It's gonna have a serious impact on my future. That's

530
00:23:36,000 --> 00:23:37,600
Speaker 2: how I think about your retirement dollars.

531
00:23:37,680 --> 00:23:38,000
Speaker 3: That's right.

532
00:23:38,119 --> 00:23:42,480
Speaker 1: Yes, we're literally talking about amputation level, like at least

533
00:23:42,480 --> 00:23:46,960
Speaker 1: in terms of finances consequences here and so what I

534
00:23:47,000 --> 00:23:50,159
Speaker 1: would do maxifar. I would hire a fee only fiduciary

535
00:23:50,200 --> 00:23:53,920
Speaker 1: advisor by the hour at a site like Hello Nectarine.

536
00:23:53,920 --> 00:23:55,960
Speaker 1: You might need a couple two, three, four hours with

537
00:23:56,080 --> 00:23:59,320
Speaker 1: somebody but or domain money. You could do a comprehensive

538
00:23:59,320 --> 00:24:03,399
Speaker 1: financial plan, but I would want someone else's input to

539
00:24:04,400 --> 00:24:07,679
Speaker 1: counteract it, or at least to poke poles in what

540
00:24:07,760 --> 00:24:10,320
Speaker 1: your current advisor is telling you. And I would want

541
00:24:10,359 --> 00:24:12,879
Speaker 1: to let them lay out everything before them and say,

542
00:24:13,000 --> 00:24:15,359
Speaker 1: what do you think I should do? Because I'm just

543
00:24:15,400 --> 00:24:17,000
Speaker 1: not sure I'm getting the best advice right now.

544
00:24:17,119 --> 00:24:19,639
Speaker 2: Yeah, man, financial advisors should totally get paid for the

545
00:24:19,680 --> 00:24:22,359
Speaker 2: work that they do, but the way that they get

546
00:24:22,480 --> 00:24:24,679
Speaker 2: paid should be optimized to be able to provide the

547
00:24:24,680 --> 00:24:27,800
Speaker 2: best incentives for both of you, not just for the

548
00:24:27,800 --> 00:24:30,919
Speaker 2: one earning the commission. It's because of that we like

549
00:24:31,040 --> 00:24:33,280
Speaker 2: paid by the hour advice or paying a lump some

550
00:24:33,400 --> 00:24:36,520
Speaker 2: amount for a full financial plan for that reason.

551
00:24:36,760 --> 00:24:37,800
Speaker 3: But sticking with a.

552
00:24:37,800 --> 00:24:40,560
Speaker 2: High priced advisor, especially if they're steering you away from

553
00:24:40,600 --> 00:24:42,680
Speaker 2: our favorite no brainer accounts, I think that could cost

554
00:24:42,720 --> 00:24:45,120
Speaker 2: you a whole lot of money in the decades to come.

555
00:24:45,520 --> 00:24:48,440
Speaker 2: And I know right now it probably feels like maybe

556
00:24:48,480 --> 00:24:49,879
Speaker 2: you are just getting to the point to where you

557
00:24:49,880 --> 00:24:52,560
Speaker 2: feel confident to make a decision like that, And I

558
00:24:53,119 --> 00:24:54,679
Speaker 2: think that's warranted as well. You don't want to have

559
00:24:54,680 --> 00:24:56,480
Speaker 2: like done some sort of knee jerk reaction just because

560
00:24:56,520 --> 00:24:59,120
Speaker 2: you heard maybe one person talk about how you shouldn't

561
00:24:59,119 --> 00:25:00,800
Speaker 2: be doing this, which is why getting that second opinion

562
00:25:00,880 --> 00:25:03,359
Speaker 2: is so helpful. But I think you are getting to

563
00:25:03,400 --> 00:25:06,800
Speaker 2: that point and ripping the band aid off now. Despite

564
00:25:07,040 --> 00:25:09,160
Speaker 2: the fact that they've helped you through a whole lot

565
00:25:09,240 --> 00:25:11,919
Speaker 2: during this painful time, I still think it's probably going

566
00:25:11,960 --> 00:25:14,520
Speaker 2: to be the best bet for you moving forward. And

567
00:25:14,560 --> 00:25:17,160
Speaker 2: I'm going to say too that she'd specifically didn't mention

568
00:25:17,760 --> 00:25:19,919
Speaker 2: the firm that her advisor is with, and I think

569
00:25:19,960 --> 00:25:21,280
Speaker 2: that's because she didn't want to throw any shade.

570
00:25:21,320 --> 00:25:22,920
Speaker 3: But you leave that to us, Joe and I will

571
00:25:22,920 --> 00:25:24,440
Speaker 3: throw the will throw the shade.

572
00:25:24,560 --> 00:25:26,600
Speaker 2: But it was with Edward Jones. And I know there

573
00:25:26,600 --> 00:25:28,239
Speaker 2: are folks out there who are able to provide some

574
00:25:28,280 --> 00:25:31,960
Speaker 2: great advice who are with Edward Jones. But it is

575
00:25:32,000 --> 00:25:34,679
Speaker 2: also a different kind of advisor. If you want to

576
00:25:34,680 --> 00:25:36,280
Speaker 2: show up in person, the old school mind, if you

577
00:25:36,280 --> 00:25:37,480
Speaker 2: want to sit down with them, if you want to

578
00:25:37,480 --> 00:25:40,000
Speaker 2: build this sort of relationship with a person over years

579
00:25:40,000 --> 00:25:43,480
Speaker 2: to come, but also pay more for that. Okay, I

580
00:25:43,480 --> 00:25:45,800
Speaker 2: could see there being a decent argument for going with

581
00:25:46,119 --> 00:25:48,400
Speaker 2: Edward Jones. But if you are looking to take more

582
00:25:48,440 --> 00:25:51,040
Speaker 2: of a DIY approach, which is going to allow you

583
00:25:51,080 --> 00:25:54,560
Speaker 2: to avoid some massive fees and especially some of the

584
00:25:54,560 --> 00:25:56,879
Speaker 2: worst products out there where they're going to receive the

585
00:25:56,960 --> 00:25:59,399
Speaker 2: highest commissions, well if that's the case, then I definitely

586
00:25:59,400 --> 00:26:01,360
Speaker 2: think that. And this is coming from someone who's been

587
00:26:01,359 --> 00:26:04,080
Speaker 2: into in Edward Jones office, Like this was me years ago.

588
00:26:04,200 --> 00:26:05,600
Speaker 2: I literally have you ever talked about this?

589
00:26:05,640 --> 00:26:07,960
Speaker 3: I think we have. Yeah, Like I cold.

590
00:26:07,800 --> 00:26:09,359
Speaker 2: Walked, you know, like a cold car, Like I just

591
00:26:09,359 --> 00:26:11,320
Speaker 2: walked in. I was just like, hey, just like a turkey,

592
00:26:12,520 --> 00:26:14,320
Speaker 2: what do I need to do about my personal finances

593
00:26:14,320 --> 00:26:14,480
Speaker 2: and this?

594
00:26:14,520 --> 00:26:16,600
Speaker 3: And they were like, oh, this is exactly what we want.

595
00:26:17,240 --> 00:26:19,359
Speaker 2: But I was able to realize that I don't think

596
00:26:19,440 --> 00:26:22,240
Speaker 2: I need these services that you're providing me. And granted

597
00:26:22,680 --> 00:26:24,280
Speaker 2: there's a lot of dumb stuff I did, but that, like,

598
00:26:24,440 --> 00:26:26,360
Speaker 2: when I look back twenty years ago, that was one

599
00:26:26,359 --> 00:26:27,800
Speaker 2: thing I was I'm able to put my finger on

600
00:26:27,840 --> 00:26:28,920
Speaker 2: and be like that was a smart move.

601
00:26:29,000 --> 00:26:29,920
Speaker 3: Yeah, avoiding that.

602
00:26:30,000 --> 00:26:31,720
Speaker 2: Lots of other dumb stuff that we won't get into

603
00:26:31,760 --> 00:26:34,560
Speaker 2: that I've done in my life, but that was one

604
00:26:34,920 --> 00:26:36,080
Speaker 2: that I know.

605
00:26:36,080 --> 00:26:39,480
Speaker 3: Has saved me. I mean countless of thousands of dollars

606
00:26:39,520 --> 00:26:40,720
Speaker 3: or yeah, oh more.

607
00:26:40,920 --> 00:26:41,120
Speaker 2: Yeah.

608
00:26:41,200 --> 00:26:42,560
Speaker 1: And that's the thing is when we talk about the

609
00:26:42,600 --> 00:26:44,520
Speaker 1: trade offs to certain things, like the cost might be

610
00:26:44,600 --> 00:26:48,160
Speaker 1: worth what you're getting, but make sure it is, because

611
00:26:48,280 --> 00:26:50,159
Speaker 1: when you talk about when you run the numbers, especially

612
00:26:50,200 --> 00:26:52,879
Speaker 1: for someone who's twenty one years old, the one percent

613
00:26:52,920 --> 00:26:56,560
Speaker 1: fee or more that indes of that caliber might charge

614
00:26:56,640 --> 00:26:59,200
Speaker 1: or of that style, I guess, I mean it could

615
00:26:59,240 --> 00:27:01,600
Speaker 1: it could literally be hundreds and hundreds and hundreds of

616
00:27:01,640 --> 00:27:05,600
Speaker 1: thousands of dollars missing from your retirement because of the

617
00:27:05,680 --> 00:27:08,679
Speaker 1: antiquated one percent of assets under management model. And so

618
00:27:08,920 --> 00:27:10,840
Speaker 1: if you want a comprehensive financial plan, some people might

619
00:27:10,840 --> 00:27:13,400
Speaker 1: say twenty five hundred dollars or whatever. That's so expensive,

620
00:27:14,040 --> 00:27:17,159
Speaker 1: not by comparison right to what you're going to get

621
00:27:17,200 --> 00:27:20,560
Speaker 1: charged from the old school model advisors, or one hundred

622
00:27:20,560 --> 00:27:22,440
Speaker 1: and fifty bucks an hour. That seems like a lot.

623
00:27:22,600 --> 00:27:25,520
Speaker 1: It's so much less than what you pay going with

624
00:27:25,640 --> 00:27:28,000
Speaker 1: the old school model advisor. So if you feel like

625
00:27:28,000 --> 00:27:30,479
Speaker 1: you need a second opinion, even a comprehensive second opinion.

626
00:27:30,680 --> 00:27:33,360
Speaker 1: It's way way cheaper, and it's such a better, more

627
00:27:33,359 --> 00:27:36,480
Speaker 1: straightforward way to go when hiring an advisor the way

628
00:27:36,520 --> 00:27:39,439
Speaker 1: you currently have it constructed. Max, we want everyone to

629
00:27:39,480 --> 00:27:40,840
Speaker 1: avoid that, and we want you to get out of

630
00:27:40,880 --> 00:27:41,200
Speaker 1: it soon.

631
00:27:41,400 --> 00:27:41,960
Speaker 3: You know it.

632
00:27:42,200 --> 00:27:45,240
Speaker 2: Joel's here from another listener. This is a listener who

633
00:27:45,320 --> 00:27:48,600
Speaker 2: is considering a new tool for her personal finance tool belt.

634
00:27:48,840 --> 00:27:50,879
Speaker 2: Whether or not we are on board, let's hear it.

635
00:27:51,200 --> 00:27:51,520
Speaker 3: Hi Aw.

636
00:27:51,640 --> 00:27:54,560
Speaker 6: This is Amy from the Bay Area. I recently discovered

637
00:27:54,560 --> 00:27:58,800
Speaker 6: an app called half More. This app helps parents turn

638
00:27:58,920 --> 00:28:04,360
Speaker 6: everyday chores into real work. The parents essentially become employers

639
00:28:05,040 --> 00:28:10,439
Speaker 6: and their children become domestic workers. By doing this, the

640
00:28:10,640 --> 00:28:17,600
Speaker 6: kids qualify for custodio roth iras, so potentially these children

641
00:28:17,640 --> 00:28:22,040
Speaker 6: can start saving for retirement as early as five years old,

642
00:28:22,960 --> 00:28:26,440
Speaker 6: and these investments could grow to be millions of dollars

643
00:28:26,760 --> 00:28:31,200
Speaker 6: by the time they retire. I love this idea. I'd

644
00:28:31,280 --> 00:28:33,840
Speaker 6: like to get a custodio roth iras started for my

645
00:28:33,920 --> 00:28:37,399
Speaker 6: nine year old. What I have a problem with is

646
00:28:37,440 --> 00:28:40,840
Speaker 6: the fee that half more wants to charge. So I

647
00:28:40,840 --> 00:28:45,280
Speaker 6: guess this is a frugal versus cheap question. How hard

648
00:28:45,360 --> 00:28:48,120
Speaker 6: is it for me to do this on my own

649
00:28:49,080 --> 00:28:52,719
Speaker 6: versus paying the fee and have the app do it

650
00:28:52,760 --> 00:28:53,040
Speaker 6: for me?

651
00:28:54,200 --> 00:28:55,040
Speaker 3: Is it worthwhile?

652
00:28:55,360 --> 00:28:57,240
Speaker 6: I don't know. I'm hoping you all can help me

653
00:28:57,280 --> 00:29:01,560
Speaker 6: answer this question. Thank you so much pre providing such

654
00:29:01,640 --> 00:29:05,000
Speaker 6: great money tips. I love it when I hear something

655
00:29:05,040 --> 00:29:07,880
Speaker 6: that I'm already doing, but I appreciate it when I

656
00:29:07,960 --> 00:29:08,760
Speaker 6: learned something new.

657
00:29:09,200 --> 00:29:11,960
Speaker 3: Amy likes that confirmation biased Joel, which don't we all?

658
00:29:12,440 --> 00:29:14,200
Speaker 3: Oh yeah, and it's so nice to get that. I

659
00:29:14,240 --> 00:29:14,720
Speaker 3: hear them back.

660
00:29:14,840 --> 00:29:17,120
Speaker 2: When I hear somebody saying that, hey, something that you're

661
00:29:17,120 --> 00:29:18,920
Speaker 2: already doing, that's good, I'm like, all right, I don't

662
00:29:18,960 --> 00:29:20,200
Speaker 2: need to hear from anybody else.

663
00:29:21,120 --> 00:29:22,880
Speaker 1: Don't give me a second opinion in this case, just

664
00:29:23,080 --> 00:29:25,200
Speaker 1: tell me how great I am. Well, I love I

665
00:29:25,200 --> 00:29:28,680
Speaker 1: love this frugal er cheap and Amy, she's not embellishing here,

666
00:29:28,800 --> 00:29:31,000
Speaker 1: like helping your child fund a roth Ira starting at

667
00:29:31,000 --> 00:29:33,360
Speaker 1: age nine, let's say, and let's assume they max it

668
00:29:33,400 --> 00:29:35,760
Speaker 1: out for a decade and they never invest another dime.

669
00:29:35,800 --> 00:29:38,080
Speaker 2: So nine to nineteen, you crunh some numbers here, you

670
00:29:38,640 --> 00:29:40,320
Speaker 2: one of those paint one of those Rosie pictures.

671
00:29:40,360 --> 00:29:42,880
Speaker 1: Normally, this is your job on the podcast. But I

672
00:29:43,280 --> 00:29:45,920
Speaker 1: took liberties on this one. But it's cool to think that, hey,

673
00:29:46,880 --> 00:29:51,000
Speaker 1: you're stopping after being a teenager, you're never investing another dime. Well, Amy,

674
00:29:51,040 --> 00:29:52,760
Speaker 1: your daughter would end up with almost two and a

675
00:29:52,800 --> 00:29:56,560
Speaker 1: half million dollars in that one account, and on top

676
00:29:56,600 --> 00:29:58,520
Speaker 1: of that, she wouldn't know tax on that money because

677
00:29:58,520 --> 00:29:59,760
Speaker 1: it's inside of a roth Ira.

678
00:30:00,120 --> 00:30:00,520
Speaker 3: Amazing.

679
00:30:00,560 --> 00:30:03,040
Speaker 1: It's truly incredible when you think about how much seventy

680
00:30:03,120 --> 00:30:07,080
Speaker 1: thousand dollars can turn into over time, because time with

681
00:30:07,240 --> 00:30:10,640
Speaker 1: money in the right place, that is the great magnifier, right,

682
00:30:10,640 --> 00:30:13,760
Speaker 1: that's the great that's the game changer. She wouldn't even

683
00:30:13,760 --> 00:30:15,400
Speaker 1: be sixty at that point either, Matt. When you think

684
00:30:15,400 --> 00:30:17,160
Speaker 1: about it, that's really crazy to be tapping into those

685
00:30:18,000 --> 00:30:18,720
Speaker 1: fifty nine and a half.

686
00:30:18,840 --> 00:30:19,160
Speaker 4: Yeah.

687
00:30:19,200 --> 00:30:22,400
Speaker 2: Okay, so we'll talk about the app half more, but briefly,

688
00:30:22,520 --> 00:30:25,200
Speaker 2: let's mention that generational wealth.

689
00:30:25,280 --> 00:30:27,800
Speaker 3: I think it can be a great goal. It's easy

690
00:30:27,880 --> 00:30:29,160
Speaker 3: to hear these numbers.

691
00:30:29,240 --> 00:30:31,880
Speaker 2: It's easy to think, oh, man, if I just do

692
00:30:31,960 --> 00:30:34,160
Speaker 2: this one thing and kind of get obsessed about, you know,

693
00:30:34,160 --> 00:30:37,400
Speaker 2: setting your daughter up for long term financial success. But

694
00:30:37,440 --> 00:30:39,000
Speaker 2: the route that you take it often comes down to

695
00:30:39,040 --> 00:30:42,320
Speaker 2: your family's particular values, and so I would say, just

696
00:30:42,400 --> 00:30:45,120
Speaker 2: make sure that helping her fund her roth Ira that

697
00:30:45,200 --> 00:30:48,200
Speaker 2: it doesn't come at the expense of funding your own

698
00:30:48,280 --> 00:30:52,080
Speaker 2: retirement well or even doing it for her. I think

699
00:30:52,120 --> 00:30:54,080
Speaker 2: there's something else to be said to just about the

700
00:30:54,200 --> 00:30:58,360
Speaker 2: lessons that you are able to teach her through her

701
00:30:58,440 --> 00:31:01,240
Speaker 2: contributing the money, and not just you saying that, Okay,

702
00:31:01,280 --> 00:31:03,400
Speaker 2: I'm going to pay for these different jobs that you're

703
00:31:03,400 --> 00:31:05,760
Speaker 2: going to do all in an effort to basically do

704
00:31:05,800 --> 00:31:07,400
Speaker 2: this for you. Yeah, just don't do this out of

705
00:31:07,480 --> 00:31:11,160
Speaker 2: obligation as well, right and thinking that this is because

706
00:31:11,200 --> 00:31:13,040
Speaker 2: now that you know that this is something that you

707
00:31:13,080 --> 00:31:15,560
Speaker 2: can do, that you now have to do it because Joe,

708
00:31:15,640 --> 00:31:17,840
Speaker 2: I mean Joel, like we're saving for our kids future

709
00:31:17,840 --> 00:31:20,000
Speaker 2: a little bit. But I think you know, overdoing it,

710
00:31:20,000 --> 00:31:22,120
Speaker 2: it can come with downsides as well, where you've sort

711
00:31:22,160 --> 00:31:24,680
Speaker 2: of removed that stimulus from them to go out there

712
00:31:24,680 --> 00:31:25,560
Speaker 2: and do something awesome in.

713
00:31:25,520 --> 00:31:28,160
Speaker 1: The world when you do it on their behalf, kind

714
00:31:28,200 --> 00:31:31,920
Speaker 1: of without their participation or knowledge. I do think you're

715
00:31:31,920 --> 00:31:35,719
Speaker 1: removing something from their lives that's healthy and good. But

716
00:31:35,840 --> 00:31:38,880
Speaker 1: enough about that, Matt. If optimizing your child's financial success

717
00:31:38,920 --> 00:31:41,520
Speaker 1: is a top priority, which I think can be good

718
00:31:41,560 --> 00:31:43,920
Speaker 1: if done in the right way. Let's talk about helping

719
00:31:43,960 --> 00:31:46,560
Speaker 1: them get that ROTH started. And the key to being

720
00:31:46,560 --> 00:31:49,160
Speaker 1: able to fund a roth IRA, as you pointed out,

721
00:31:49,440 --> 00:31:52,280
Speaker 1: is having earned income, and most nine year olds have

722
00:31:52,360 --> 00:31:54,640
Speaker 1: a hard time pulling that off. There aren't many nine

723
00:31:54,720 --> 00:31:57,720
Speaker 1: year olds out there with day jobs, understandably, so those

724
00:31:57,960 --> 00:32:01,080
Speaker 1: pesky child labor laws matty, they get in the way, right.

725
00:32:01,400 --> 00:32:04,560
Speaker 1: But some personal finance nerds they have found ways to

726
00:32:04,560 --> 00:32:06,560
Speaker 1: have their kids do chores and to get paid for them,

727
00:32:06,640 --> 00:32:09,040
Speaker 1: and this app seems to kind of streamline that and

728
00:32:09,440 --> 00:32:13,360
Speaker 1: make it more easier to document for tax purposes, and

729
00:32:13,400 --> 00:32:16,360
Speaker 1: it allows them to use those earnings to fund a WROTH.

730
00:32:16,840 --> 00:32:19,800
Speaker 1: So I think it's cool that people have found a

731
00:32:19,840 --> 00:32:23,920
Speaker 1: way to use the system as constructed and kind of

732
00:32:24,320 --> 00:32:26,600
Speaker 1: figure out the specific details so they can get their

733
00:32:26,680 --> 00:32:30,680
Speaker 1: kids into this fantastic retirement account. But it does take

734
00:32:30,680 --> 00:32:32,000
Speaker 1: a little finaggiling.

735
00:32:31,600 --> 00:32:33,720
Speaker 2: Yeah, And so this doesn't have to be something that's

736
00:32:33,760 --> 00:32:36,480
Speaker 2: overly complicated though as well. Like so for instance, Joel,

737
00:32:36,720 --> 00:32:39,040
Speaker 2: like we both have eleven year olds who are who

738
00:32:39,120 --> 00:32:42,960
Speaker 2: start a babysitting they are starting to earn actual real money, like.

739
00:32:42,960 --> 00:32:45,400
Speaker 1: I've got to earn fifty bucks the other night, dude,

740
00:32:45,440 --> 00:32:47,680
Speaker 1: and I was like, I talk to her about this.

741
00:32:47,920 --> 00:32:50,800
Speaker 2: Yes, no, exactly, And so using money that our kids

742
00:32:50,840 --> 00:32:53,960
Speaker 2: are earning to fund a WROTH is totally fine. But

743
00:32:54,120 --> 00:32:55,320
Speaker 2: what I want to point out here is that you

744
00:32:55,360 --> 00:32:58,920
Speaker 2: can't pay your kids for just normal household chores and

745
00:32:58,960 --> 00:32:59,760
Speaker 2: then count.

746
00:32:59,520 --> 00:33:00,560
Speaker 3: That has earned income.

747
00:33:00,680 --> 00:33:03,120
Speaker 1: Or did you make your bed, honey, Exactly, here's twenty bucks,

748
00:33:03,200 --> 00:33:05,480
Speaker 1: Like that doesn't count towards ROTH eligibility.

749
00:33:06,000 --> 00:33:08,760
Speaker 2: And half more. They even admit that, and on the

750
00:33:08,880 --> 00:33:11,080
Speaker 2: on their side, they say this is a quote for

751
00:33:11,160 --> 00:33:14,280
Speaker 2: chores to be recognized as legitimate sources of income, your

752
00:33:14,360 --> 00:33:16,840
Speaker 2: kids should be paid for tax that you would typically

753
00:33:17,080 --> 00:33:19,880
Speaker 2: hire another neighborhood kid or even a nanny to do,

754
00:33:20,280 --> 00:33:23,080
Speaker 2: rather than for just regular family chores, like I'm even

755
00:33:23,120 --> 00:33:25,320
Speaker 2: thinking of something like emptying the dishwasher, right, yeah. Like

756
00:33:25,520 --> 00:33:28,880
Speaker 2: they should also be appropriate for your child's age and abilities,

757
00:33:29,040 --> 00:33:32,440
Speaker 2: so for example, cleaning the garage, mowing the lawn, babysitting.

758
00:33:32,680 --> 00:33:35,640
Speaker 2: The work must be real and the wages should be fair.

759
00:33:35,680 --> 00:33:37,640
Speaker 2: But as long as you can make a decent argument

760
00:33:37,760 --> 00:33:41,280
Speaker 2: that that is the case, well you can totally start

761
00:33:41,320 --> 00:33:45,640
Speaker 2: contributing to a roth ira through half more or even

762
00:33:46,120 --> 00:33:48,239
Speaker 2: completely on your own. But one of the things that

763
00:33:48,280 --> 00:33:50,320
Speaker 2: makes half more so great is the fact that, like

764
00:33:50,360 --> 00:33:52,280
Speaker 2: what they do well is they document, like they create

765
00:33:52,280 --> 00:33:55,120
Speaker 2: that paper trail, and that's the part that I think

766
00:33:55,160 --> 00:33:57,080
Speaker 2: a lot of folks fail to do.

767
00:33:57,400 --> 00:33:58,880
Speaker 3: Yeah, but I think that.

768
00:33:58,800 --> 00:34:01,120
Speaker 1: Could be as easy as just say up a log

769
00:34:01,800 --> 00:34:05,120
Speaker 1: just on Google, Google Sheets or whatever in order to

770
00:34:05,120 --> 00:34:07,200
Speaker 1: do that, like if you wanted to take a more

771
00:34:07,240 --> 00:34:09,680
Speaker 1: DIY approach. When I first heard the question, Matt, my

772
00:34:09,800 --> 00:34:13,279
Speaker 1: first instinct was to be like, oh that, I think

773
00:34:13,320 --> 00:34:16,879
Speaker 1: it's silly to use an app like this to help

774
00:34:16,880 --> 00:34:19,200
Speaker 1: you out. This is something you can totally DIY, like

775
00:34:19,680 --> 00:34:21,680
Speaker 1: why does this app need to exist? But the further

776
00:34:21,719 --> 00:34:23,480
Speaker 1: I delved into it, if you want to keep your

777
00:34:23,560 --> 00:34:26,040
Speaker 1: i's dotted and your t's crossed, I think it can

778
00:34:26,080 --> 00:34:28,680
Speaker 1: make some sense. So on the half more front, you

779
00:34:28,719 --> 00:34:30,879
Speaker 1: know they're helping with the compliance and the investing side

780
00:34:30,920 --> 00:34:33,080
Speaker 1: of things, and they take one hundred and forty four

781
00:34:33,120 --> 00:34:37,240
Speaker 1: dollars a year for their service, which actually seems reasonable

782
00:34:37,280 --> 00:34:40,080
Speaker 1: in my opinion. It's going to help save you time

783
00:34:40,440 --> 00:34:44,239
Speaker 1: while also helping you ensure that you're jumping through the

784
00:34:44,280 --> 00:34:47,200
Speaker 1: proper hoops. You're documenting everything properly for the irs, or

785
00:34:47,239 --> 00:34:50,360
Speaker 1: even giving like suggestions of what your child should be

786
00:34:50,400 --> 00:34:53,360
Speaker 1: paid for certain tasks that they might do around the house,

787
00:34:53,640 --> 00:34:56,439
Speaker 1: and you can just diy it open up a rothit

788
00:34:56,480 --> 00:34:59,640
Speaker 1: fidelity for your daughter. But then there's other paperwork like

789
00:34:59,680 --> 00:35:01,760
Speaker 1: the law Matt, like a diy log that you mentioned,

790
00:35:01,760 --> 00:35:04,239
Speaker 1: which I think is also a good solution to this.

791
00:35:05,200 --> 00:35:07,560
Speaker 1: And you'd also have to file taxes for her as well,

792
00:35:07,560 --> 00:35:10,080
Speaker 1: which half more handles. That's part of the fee, which

793
00:35:10,120 --> 00:35:10,720
Speaker 1: is kind of cool.

794
00:35:10,840 --> 00:35:12,520
Speaker 3: There's some additional value there.

795
00:35:12,560 --> 00:35:15,240
Speaker 2: But you're also looking at so because I was curious,

796
00:35:15,280 --> 00:35:17,280
Speaker 2: I'm just like, all right, like our girls are earning

797
00:35:17,280 --> 00:35:19,000
Speaker 2: a lot more money, but you don't technically have to

798
00:35:19,120 --> 00:35:22,560
Speaker 2: file taxes unless they're earning above the standard deduction for

799
00:35:22,719 --> 00:35:25,040
Speaker 2: a dependent and so that's a lot of money.

800
00:35:24,760 --> 00:35:27,240
Speaker 3: Which is what almost thirteen thousand dollars fifteen thousand.

801
00:35:27,920 --> 00:35:29,920
Speaker 2: Yeah, So I mean for me at least, the more

802
00:35:29,920 --> 00:35:33,040
Speaker 2: I thought about it, knowing my proclivity to get dive

803
00:35:33,080 --> 00:35:37,600
Speaker 2: into the weeds, create Excel spreadsheets or Google sheets, I

804
00:35:37,680 --> 00:35:39,600
Speaker 2: think this is the year that we literally are going

805
00:35:39,640 --> 00:35:42,200
Speaker 2: to open up a roth Ira for our oldest daughter,

806
00:35:42,600 --> 00:35:44,879
Speaker 2: the one who is earning all the money, and specifically,

807
00:35:45,000 --> 00:35:46,839
Speaker 2: some of the information I'm going to keep up with

808
00:35:47,000 --> 00:35:49,319
Speaker 2: is the date of the job, like a description of

809
00:35:49,360 --> 00:35:51,719
Speaker 2: the job, and then the dollar amount, and so that's

810
00:35:51,760 --> 00:35:54,680
Speaker 2: going to tell us how much we are able to invest.

811
00:35:54,920 --> 00:35:56,319
Speaker 2: But then beyond that, I think a lot of it

812
00:35:56,320 --> 00:35:58,719
Speaker 2: comes down to you as a parent deciding like, hey,

813
00:35:59,120 --> 00:36:00,799
Speaker 2: this is something that we're talking walking through, how much

814
00:36:00,840 --> 00:36:02,399
Speaker 2: of this you know, this is the money that you've

815
00:36:02,440 --> 00:36:06,279
Speaker 2: earned this year with your quote unquote official gigs. How

816
00:36:06,360 --> 00:36:07,279
Speaker 2: much of it do you.

817
00:36:07,280 --> 00:36:07,960
Speaker 3: Want to invest?

818
00:36:08,040 --> 00:36:09,719
Speaker 2: And then as a parent, I think we can then

819
00:36:09,800 --> 00:36:11,960
Speaker 2: choose if we want to say match.

820
00:36:11,760 --> 00:36:14,640
Speaker 3: That, because let's say, well, obviously you can't go more.

821
00:36:14,640 --> 00:36:16,840
Speaker 2: You can't invest more in a roth iray than they

822
00:36:16,840 --> 00:36:18,920
Speaker 2: actually earned, right, But like so I'm assuming that, like

823
00:36:19,080 --> 00:36:23,040
Speaker 2: they choose to invest half of what it is up there,

824
00:36:23,080 --> 00:36:25,200
Speaker 2: and well, then you have the ability to match that

825
00:36:25,680 --> 00:36:28,360
Speaker 2: and be totally cool according to the according to what

826
00:36:28,400 --> 00:36:30,080
Speaker 2: it is that the IRS wants to see from you,

827
00:36:30,239 --> 00:36:32,560
Speaker 2: And that's again what the IRS wants to see from you.

828
00:36:32,560 --> 00:36:34,480
Speaker 2: In the worst case scenario, which is if you get audited,

829
00:36:34,520 --> 00:36:36,880
Speaker 2: It's not like you have to prove to Fidelity or Vanguard,

830
00:36:37,280 --> 00:36:40,000
Speaker 2: but it's the irs who if they come a knock

831
00:36:40,040 --> 00:36:41,360
Speaker 2: in that you need to be able to provide this

832
00:36:41,440 --> 00:36:44,239
Speaker 2: information for. So that's I don't know, that's more of

833
00:36:44,239 --> 00:36:46,120
Speaker 2: my idea as I think through it and the steps

834
00:36:46,160 --> 00:36:47,760
Speaker 2: that I would take. It's sort of like an HSA

835
00:36:47,840 --> 00:36:49,800
Speaker 2: lock right, where you're keeping up with a day, what

836
00:36:49,880 --> 00:36:51,759
Speaker 2: it was, how much, how much it was, and that

837
00:36:51,880 --> 00:36:52,440
Speaker 2: allows you to.

838
00:36:52,440 --> 00:36:53,160
Speaker 3: Put it very similar.

839
00:36:53,280 --> 00:36:55,600
Speaker 2: Yeah, yeah, so and so maybe, oh yeah, maybe the

840
00:36:55,640 --> 00:36:57,600
Speaker 2: scratches that itch, the fact that I've never had an HSA,

841
00:36:57,719 --> 00:36:58,840
Speaker 2: this is a way for me to keep up with

842
00:36:58,840 --> 00:37:01,479
Speaker 2: some sort of lot when it comes to what it.

843
00:37:01,400 --> 00:37:02,880
Speaker 3: Is my daughter is earned well.

844
00:37:02,760 --> 00:37:04,719
Speaker 1: And like one hundred and forty four bucks for what

845
00:37:05,520 --> 00:37:07,840
Speaker 1: half more is offering. It's it seems like it's not

846
00:37:07,840 --> 00:37:09,319
Speaker 1: that much, but when you think about how much your

847
00:37:09,360 --> 00:37:12,600
Speaker 1: kid might be contributing, especially when they're younger on the

848
00:37:12,640 --> 00:37:16,000
Speaker 1: earlier spectrum of earning years, maybe they earned three hundred

849
00:37:16,000 --> 00:37:18,359
Speaker 1: bucks that year, and let's say they invest at all,

850
00:37:18,520 --> 00:37:20,560
Speaker 1: or invest half and you invest the other half. So

851
00:37:20,560 --> 00:37:22,799
Speaker 1: they're investing three hundred bucks into a roth Ira, Well,

852
00:37:22,840 --> 00:37:25,560
Speaker 1: one hundred and forty four dollars fee is actually pretty expensive.

853
00:37:25,560 --> 00:37:28,240
Speaker 1: It might comparison, right, and I guess so it seems minimal,

854
00:37:28,800 --> 00:37:30,360
Speaker 1: but maybe it's not actually when you think of it

855
00:37:30,360 --> 00:37:32,480
Speaker 1: as a percentage of the overall amount that's going into

856
00:37:32,480 --> 00:37:33,960
Speaker 1: that cause if it's a lot more than that, and

857
00:37:34,120 --> 00:37:36,400
Speaker 1: you're looking for something that's a little more automated, turnkey,

858
00:37:36,520 --> 00:37:38,600
Speaker 1: something that if you know that this isn't something that

859
00:37:38,600 --> 00:37:42,319
Speaker 1: you would otherwise do, well, then shoot that one four.

860
00:37:42,480 --> 00:37:44,920
Speaker 1: It doesn't matter at all because otherwise it would not

861
00:37:44,960 --> 00:37:46,880
Speaker 1: have happened. So it just depends, I think, on the

862
00:37:46,920 --> 00:37:49,880
Speaker 1: individual and the likelihood of you actually following through and

863
00:37:49,920 --> 00:37:51,759
Speaker 1: doing this. But I think you make a great point

864
00:37:51,760 --> 00:37:54,120
Speaker 1: that it's actually pretty easy to kind of do that

865
00:37:54,280 --> 00:37:58,239
Speaker 1: yourself for the time being, unless they're earning like a

866
00:37:58,320 --> 00:38:00,880
Speaker 1: kid who's earning big, big bucks beyond standard deduction, and

867
00:38:00,880 --> 00:38:03,319
Speaker 1: then you might it might be saving you money on

868
00:38:03,360 --> 00:38:04,440
Speaker 1: the tax services front too.

869
00:38:04,520 --> 00:38:06,520
Speaker 2: Yeah. Well, I don't want to sound like a total

870
00:38:06,600 --> 00:38:09,520
Speaker 2: pessimist or thinking the worst of this app it seems

871
00:38:09,520 --> 00:38:11,120
Speaker 2: like it's great and amy, I don't want to shoot

872
00:38:11,120 --> 00:38:13,759
Speaker 2: you down. But one other thought that I had is

873
00:38:14,480 --> 00:38:17,279
Speaker 2: what access do you have to that information? Because that

874
00:38:17,360 --> 00:38:20,520
Speaker 2: log that is what's valuable to me? That is the

875
00:38:20,560 --> 00:38:22,880
Speaker 2: most valuable piece of what it is that they're providing,

876
00:38:23,719 --> 00:38:26,839
Speaker 2: And do you have the ability to export that data, say,

877
00:38:26,840 --> 00:38:28,560
Speaker 2: if you wanted to, if you wanted to leave, because

878
00:38:28,600 --> 00:38:31,560
Speaker 2: if not, we'll shoot, We've got like six years worth

879
00:38:31,560 --> 00:38:35,080
Speaker 2: of gigs that they got paid for. And what am

880
00:38:35,120 --> 00:38:36,319
Speaker 2: I going to have to do? I do I have

881
00:38:36,360 --> 00:38:38,480
Speaker 2: to go back and manually No, people aren't going to

882
00:38:38,520 --> 00:38:39,879
Speaker 2: do that. People aren't going to go back and copy

883
00:38:39,920 --> 00:38:42,480
Speaker 2: that information down. And so then it almost feels like

884
00:38:42,480 --> 00:38:45,040
Speaker 2: you're held hostage a little bit. Yeah, if they're saying, yeah,

885
00:38:45,080 --> 00:38:47,719
Speaker 2: it's one forty four now, but next year it's going

886
00:38:47,760 --> 00:38:49,200
Speaker 2: to be two hundred and the year after that is

887
00:38:49,200 --> 00:38:52,240
Speaker 2: gonna be two fifty. Yeah, and you're taking a very

888
00:38:52,600 --> 00:38:55,120
Speaker 2: I'm thinking less generously of what it is I have

889
00:38:55,239 --> 00:38:57,560
Speaker 2: more might you know? Might to I'm not, and I don't.

890
00:38:57,600 --> 00:38:59,479
Speaker 2: We don't have any indication that that's what they're looking

891
00:38:59,520 --> 00:39:02,280
Speaker 2: to do. But I would want to know what access

892
00:39:02,320 --> 00:39:04,239
Speaker 2: do I have to my information to be able to

893
00:39:04,280 --> 00:39:07,200
Speaker 2: retain those records for the future, were the irs to

894
00:39:07,200 --> 00:39:07,600
Speaker 2: come knock it?

895
00:39:07,680 --> 00:39:09,719
Speaker 1: Well, it's also an important question just because you don't

896
00:39:09,760 --> 00:39:12,240
Speaker 1: know how long a fintech app is going to exist,

897
00:39:12,239 --> 00:39:14,560
Speaker 1: that's true. You can hope that they'll be around for decades,

898
00:39:14,600 --> 00:39:16,759
Speaker 1: but the truth is some of them don't last quite

899
00:39:16,800 --> 00:39:18,920
Speaker 1: that long, and this is kind of a niche product.

900
00:39:18,960 --> 00:39:22,279
Speaker 1: So we'll see if this one fails or flounders, or

901
00:39:22,280 --> 00:39:24,880
Speaker 1: if it does end up being successful.

902
00:39:24,920 --> 00:39:26,640
Speaker 3: So yeah, I love the heart behind to them.

903
00:39:26,719 --> 00:39:29,279
Speaker 1: Yeah, exactly. I think it's cool, and I'm glad that

904
00:39:29,360 --> 00:39:32,040
Speaker 1: Amy brought this to our attention because I didn't know

905
00:39:32,160 --> 00:39:36,000
Speaker 1: about half more, even though we have thoughts on kids

906
00:39:36,000 --> 00:39:38,000
Speaker 1: and ross and stuff like that that we've offered here. Yeah,

907
00:39:38,000 --> 00:39:40,000
Speaker 1: but it's cool that their apps being made to try

908
00:39:40,000 --> 00:39:43,400
Speaker 1: and help people in that way to help their kids invest.

909
00:39:43,600 --> 00:39:46,160
Speaker 1: But it also doesn't mean it's the best option. But man,

910
00:39:46,200 --> 00:39:49,200
Speaker 1: we've got more questions to get to, including a listener

911
00:39:49,320 --> 00:39:52,799
Speaker 1: question about abnormal expenses on the horizon. We'll talk about

912
00:39:52,840 --> 00:39:53,640
Speaker 1: that right after this.

913
00:40:01,440 --> 00:40:03,080
Speaker 3: All right, Joel, we are back from the break, and

914
00:40:03,200 --> 00:40:06,040
Speaker 3: of course it is now time for the Facebook Question of.

915
00:40:06,000 --> 00:40:08,520
Speaker 1: The week, always taken from the how to Money Facebook group,

916
00:40:08,520 --> 00:40:10,319
Speaker 1: which if you're not a member of you should join in.

917
00:40:10,360 --> 00:40:13,680
Speaker 2: This one is from how to Money Facebook group member Adam.

918
00:40:14,000 --> 00:40:16,279
Speaker 2: He asks this is a long one, by the way,

919
00:40:16,320 --> 00:40:20,160
Speaker 2: so get comfortable. We have coming up over the next

920
00:40:20,160 --> 00:40:22,680
Speaker 2: two years or so a series of non normal expenses.

921
00:40:23,320 --> 00:40:25,439
Speaker 2: I budget and track religiously and we save a ton,

922
00:40:25,520 --> 00:40:28,080
Speaker 2: and I typically like to plan out when larger expenses

923
00:40:28,120 --> 00:40:30,239
Speaker 2: are planned and where they are due to come from.

924
00:40:30,400 --> 00:40:32,439
Speaker 2: We have about six to seven thousand dollars of coming

925
00:40:32,680 --> 00:40:36,720
Speaker 2: upcoming house improvements needed three thousand and furnishings, and also

926
00:40:36,800 --> 00:40:39,400
Speaker 2: we have to replace our seventeen year old family vehicle

927
00:40:39,520 --> 00:40:42,000
Speaker 2: that is failing and due to be replaced, which I'm

928
00:40:42,080 --> 00:40:45,320
Speaker 2: planning to be around a thirty five thousand dollars expense

929
00:40:45,480 --> 00:40:49,399
Speaker 2: to replace, So altogether forty five thousand dollars coming up.

930
00:40:49,960 --> 00:40:52,920
Speaker 2: I do have money available to cover these things, around

931
00:40:53,120 --> 00:40:57,359
Speaker 2: fifty thousand dollars in a Vanguard taxable brokerage fifty five

932
00:40:57,360 --> 00:41:00,920
Speaker 2: thousand dollars in Vanguard inherited IRA that will need to

933
00:41:00,960 --> 00:41:02,840
Speaker 2: be liquidated by twenty twenty.

934
00:41:02,560 --> 00:41:05,480
Speaker 3: Eight due to IRS rules. Both of these accounts are

935
00:41:05,480 --> 00:41:08,279
Speaker 3: growing nicely in today's equity environment, and this is all

936
00:41:08,320 --> 00:41:10,040
Speaker 3: separate from my types.

937
00:41:09,800 --> 00:41:12,880
Speaker 2: Of vantage retirement accounts. I also have a mortgage on

938
00:41:12,920 --> 00:41:16,719
Speaker 2: our home at three point six two five percent that

939
00:41:16,840 --> 00:41:18,120
Speaker 2: is close to being paid off.

940
00:41:18,200 --> 00:41:21,000
Speaker 1: That's pretty that's nice sweet in this environment.

941
00:41:20,680 --> 00:41:24,600
Speaker 2: A twenty thousand dollars balance on a roughly four hundred

942
00:41:24,600 --> 00:41:27,520
Speaker 2: and twenty thousand dollars home valuation, and at this rate,

943
00:41:27,880 --> 00:41:29,919
Speaker 2: it's due to be paid off in a little over

944
00:41:29,960 --> 00:41:30,600
Speaker 2: three years.

945
00:41:30,760 --> 00:41:31,759
Speaker 3: Joel, I'm gonna tag you in.

946
00:41:31,800 --> 00:41:32,520
Speaker 2: You want to relieve me?

947
00:41:32,680 --> 00:41:32,879
Speaker 3: Sure?

948
00:41:32,920 --> 00:41:35,000
Speaker 1: As he gets so, his main question, he says in

949
00:41:35,040 --> 00:41:37,600
Speaker 1: all of this is, Hey, I've been thinking lately if

950
00:41:37,640 --> 00:41:39,960
Speaker 1: it would be possible and better to try to somehow

951
00:41:40,040 --> 00:41:42,640
Speaker 1: use my home equity and current mortgage rate to produce

952
00:41:42,640 --> 00:41:44,920
Speaker 1: some cash that can be used for these upcoming short

953
00:41:45,000 --> 00:41:50,080
Speaker 1: term expenses without taking money from those investments. Those funds

954
00:41:50,120 --> 00:41:52,600
Speaker 1: above are growing a lot more than the three point

955
00:41:52,680 --> 00:41:55,720
Speaker 1: six percent rate, and the OCD saver in me would

956
00:41:55,719 --> 00:41:59,440
Speaker 1: love to keep those accounts intact maximize earning power. Aside

957
00:41:59,480 --> 00:42:02,000
Speaker 1: from setting up a traditional thirty year fixed mortgage, I'm

958
00:42:02,000 --> 00:42:04,160
Speaker 1: not familiar with the mechanisms of those loans and whether

959
00:42:04,160 --> 00:42:06,520
Speaker 1: it's possible to pull equity back out of the house

960
00:42:06,760 --> 00:42:09,440
Speaker 1: while avoiding any briefinance costs so that I can stick

961
00:42:09,480 --> 00:42:11,920
Speaker 1: with my nice low rate. I've heard of reverse mortgages

962
00:42:11,920 --> 00:42:14,680
Speaker 1: home equity loans, but I'm not intimately familiar with them,

963
00:42:14,719 --> 00:42:17,800
Speaker 1: and so basically, hey, for this short period of time,

964
00:42:18,040 --> 00:42:20,680
Speaker 1: Adam's wondering, what do I do? Like, I'm gonna have

965
00:42:20,719 --> 00:42:22,800
Speaker 1: some relief on the home payment front in a few years,

966
00:42:22,920 --> 00:42:25,120
Speaker 1: but for the time being, how do I get past

967
00:42:25,120 --> 00:42:26,239
Speaker 1: all these purchases I need to make?

968
00:42:26,360 --> 00:42:26,759
Speaker 3: What to do?

969
00:42:26,840 --> 00:42:29,520
Speaker 2: Yeah, so let's start with what Adam mentioned there towards

970
00:42:29,560 --> 00:42:31,360
Speaker 2: the end of his question. And first of all, a

971
00:42:31,520 --> 00:42:34,439
Speaker 2: reverse mortgage is really only a financial tool of last

972
00:42:34,480 --> 00:42:37,520
Speaker 2: resort for folks who are typically in retirement, who have

973
00:42:37,719 --> 00:42:39,319
Speaker 2: no other way to get by if you have no

974
00:42:39,400 --> 00:42:42,359
Speaker 2: other assets, So definitely not that. Oh and they tend

975
00:42:42,360 --> 00:42:45,000
Speaker 2: to be pretty dang expensive as well. Sure, and I

976
00:42:45,000 --> 00:42:47,040
Speaker 2: would hate to see anyone take out a helock right now,

977
00:42:47,080 --> 00:42:49,279
Speaker 2: if at all possible, because I mean, interest rates are

978
00:42:49,320 --> 00:42:51,879
Speaker 2: in the nine percent range. I would say it's even

979
00:42:52,080 --> 00:42:55,320
Speaker 2: better to tap investment accounts than to take on debts

980
00:42:55,560 --> 00:42:58,080
Speaker 2: with that kind of interest rate. So first thing to

981
00:42:58,080 --> 00:43:01,560
Speaker 2: address here are the home equity products that he mentioned,

982
00:43:01,560 --> 00:43:04,279
Speaker 2: And I get his desire there to once to tap

983
00:43:04,280 --> 00:43:05,960
Speaker 2: into those, because he's got a whole lot of He's

984
00:43:05,960 --> 00:43:08,040
Speaker 2: got a lot of his net worth is tied up

985
00:43:08,040 --> 00:43:09,719
Speaker 2: in his home, yea. And I think there's probably an

986
00:43:09,719 --> 00:43:11,719
Speaker 2: emotional part of him as well. He sees that three

987
00:43:11,800 --> 00:43:15,000
Speaker 2: six two five percent mortgage rate, he knows it's going away,

988
00:43:15,239 --> 00:43:17,160
Speaker 2: and I wonder if it almost feels like as a

989
00:43:17,160 --> 00:43:20,360
Speaker 2: way to hang on to that low rate mortgage. But

990
00:43:20,680 --> 00:43:23,000
Speaker 2: fact is, man like, no matter what, that thing is

991
00:43:23,000 --> 00:43:23,399
Speaker 2: going away.

992
00:43:23,440 --> 00:43:25,480
Speaker 1: But yeah, I think, which is not a bad thing

993
00:43:25,560 --> 00:43:27,799
Speaker 1: to be getting rid of that mortgage, especially if you're

994
00:43:27,840 --> 00:43:30,120
Speaker 1: just paying it off. As agreed, that's the dream is

995
00:43:30,160 --> 00:43:33,279
Speaker 1: to hold on to that low mortgage rate until it's

996
00:43:33,320 --> 00:43:35,359
Speaker 1: over and you own your home free and clear.

997
00:43:35,400 --> 00:43:36,960
Speaker 2: But it doesn't mean taking on some of these home

998
00:43:37,000 --> 00:43:40,600
Speaker 2: equity products that are not nearly as good as how

999
00:43:40,640 --> 00:43:43,160
Speaker 2: you view that's right your house maybe because of that

1000
00:43:43,239 --> 00:43:45,280
Speaker 2: super low rate of less than four percent.

1001
00:43:45,320 --> 00:43:47,640
Speaker 1: Because that era is over, So like we should kind

1002
00:43:47,640 --> 00:43:49,799
Speaker 1: of end that way of thinking, at least if you're

1003
00:43:49,800 --> 00:43:52,440
Speaker 1: talking about taking on new debt for homes. Right, and so,

1004
00:43:52,920 --> 00:43:55,000
Speaker 1: Adam is doing so well in so many aspects of

1005
00:43:55,000 --> 00:43:57,920
Speaker 1: his personal finances. The mortgage is almost gone, and when

1006
00:43:57,960 --> 00:44:01,000
Speaker 1: it is, that's going to massively increase his mind cash flow.

1007
00:44:01,000 --> 00:44:02,560
Speaker 1: But right now he's got to get through this pinch.

1008
00:44:02,560 --> 00:44:03,839
Speaker 1: So I think if this is like a two year

1009
00:44:03,880 --> 00:44:06,520
Speaker 1: window where he's just got to be dedicated to not

1010
00:44:06,960 --> 00:44:10,600
Speaker 1: making potentially a screw up here that could impact his

1011
00:44:10,640 --> 00:44:14,160
Speaker 1: financial future negatively. And I think the best way to

1012
00:44:14,239 --> 00:44:17,640
Speaker 1: do that is to avoid new debt vehicles. And partially

1013
00:44:17,640 --> 00:44:20,480
Speaker 1: because of what you highlighted, not that rates on yeah,

1014
00:44:20,560 --> 00:44:23,359
Speaker 1: rates are high and almost the yeah, almost any debt

1015
00:44:23,400 --> 00:44:25,360
Speaker 1: you're going to take on, it's not going to be

1016
00:44:26,120 --> 00:44:29,040
Speaker 1: nearly as benign as it was five six years ago.

1017
00:44:29,600 --> 00:44:33,239
Speaker 1: And I think since the inherited IRA he mentioned has

1018
00:44:33,320 --> 00:44:36,600
Speaker 1: to be liquidated within the next three years anyway, which

1019
00:44:36,680 --> 00:44:40,400
Speaker 1: means less stock exposure, is wise in that account. By

1020
00:44:40,400 --> 00:44:43,000
Speaker 1: the way, why not tap that account for these upcoming

1021
00:44:43,040 --> 00:44:46,080
Speaker 1: expenses and to help reduce your single year tax burden.

1022
00:44:46,200 --> 00:44:49,279
Speaker 1: You might want to spread those disbursements out over tax

1023
00:44:49,320 --> 00:44:51,400
Speaker 1: yiars twenty twenty five and twenty twenty six. You're not

1024
00:44:51,440 --> 00:44:54,520
Speaker 1: just like taking out a massive lump sum creating a

1025
00:44:54,600 --> 00:44:56,680
Speaker 1: much higher tax burden in one single year, but you're

1026
00:44:56,719 --> 00:45:00,440
Speaker 1: spreading that tax burden now but taking on more debt

1027
00:45:00,560 --> 00:45:02,799
Speaker 1: in today's environment, I don't think it makes sense. Hey,

1028
00:45:02,800 --> 00:45:06,000
Speaker 1: this account needs to be drained anyway in the coming years,

1029
00:45:06,360 --> 00:45:09,160
Speaker 1: why not just do that a little bit sooner than

1030
00:45:09,520 --> 00:45:12,880
Speaker 1: you had planned in order to ensure that you avoid

1031
00:45:12,920 --> 00:45:15,840
Speaker 1: debt and you keep your investments mostly intact totally.

1032
00:45:15,960 --> 00:45:16,160
Speaker 3: Yeah.

1033
00:45:16,200 --> 00:45:18,080
Speaker 2: Well, and you mentioned the the tax that's going to

1034
00:45:18,120 --> 00:45:20,640
Speaker 2: be owed on that inherited ira. That's assuming that. And

1035
00:45:20,640 --> 00:45:22,880
Speaker 2: he didn't say whether or not it's a traditional or

1036
00:45:22,960 --> 00:45:24,960
Speaker 2: whether it's a raw iray, but if it's a rough iray,

1037
00:45:25,080 --> 00:45:27,120
Speaker 2: he's not going to owe any tax on that. And again,

1038
00:45:27,400 --> 00:45:29,359
Speaker 2: and my guess is it's a traditional because you mentioned tax.

1039
00:45:29,400 --> 00:45:30,160
Speaker 3: But I think that's.

1040
00:45:30,040 --> 00:45:32,920
Speaker 2: Definitely what I would be doing where I in Adam's shoes.

1041
00:45:33,880 --> 00:45:37,359
Speaker 2: He mentioned let's see, he mentioned an expensive vehicle coming up,

1042
00:45:37,760 --> 00:45:41,480
Speaker 2: expensive vehicle purchase, and I will say, let's see, I'm

1043
00:45:41,480 --> 00:45:43,320
Speaker 2: looking at this. He's got a seventeen year old family

1044
00:45:43,400 --> 00:45:46,160
Speaker 2: vehicle and now he's thinking about hopping into something that's

1045
00:45:46,280 --> 00:45:47,560
Speaker 2: thirty five thousand dollars.

1046
00:45:47,840 --> 00:45:49,960
Speaker 1: I get that, that's seventeen year old. That's that's an

1047
00:45:49,960 --> 00:45:50,359
Speaker 1: older car.

1048
00:45:50,440 --> 00:45:53,560
Speaker 2: It's an older car, but there's a way to get

1049
00:45:53,600 --> 00:45:55,720
Speaker 2: around for less. I guess I just want to challenge

1050
00:45:55,800 --> 00:45:57,680
Speaker 2: the notion that you have to get something that's going

1051
00:45:57,719 --> 00:45:59,879
Speaker 2: to cost thirty five thousand, right, like even getting something

1052
00:45:59,920 --> 00:46:03,320
Speaker 2: that twenty five thousand dollars, that's a big difference, even Joel,

1053
00:46:03,400 --> 00:46:06,600
Speaker 2: I didn't even tell you this. Our car is getting

1054
00:46:06,600 --> 00:46:08,120
Speaker 2: a little bit of work done to it right now,

1055
00:46:08,160 --> 00:46:10,480
Speaker 2: and we have a loaner vehicle from the shop we

1056
00:46:10,560 --> 00:46:12,840
Speaker 2: are currently driving, which is awesome. By the way, What

1057
00:46:12,960 --> 00:46:15,840
Speaker 2: a great perk that these guys offer. I'm driving around

1058
00:46:15,840 --> 00:46:18,719
Speaker 2: in a two thousand and eight Honda Odyssey, and is

1059
00:46:18,960 --> 00:46:20,520
Speaker 2: that what y're you? Even try to buy it from them?

1060
00:46:20,560 --> 00:46:22,880
Speaker 2: He wouldn't sell it, as he knows what he's sitting on.

1061
00:46:23,280 --> 00:46:25,040
Speaker 2: But I got curious and I looked up what would

1062
00:46:25,040 --> 00:46:26,960
Speaker 2: a two thousand and eight Honda Odyssey go for like

1063
00:46:27,360 --> 00:46:28,680
Speaker 2: four or five thousand dollars?

1064
00:46:28,760 --> 00:46:31,400
Speaker 1: And this is from the cars, this is from a

1065
00:46:31,520 --> 00:46:33,960
Speaker 1: mechanic and so it's like impeccably careful and that's legit

1066
00:46:34,040 --> 00:46:35,080
Speaker 1: seventeen years old right now.

1067
00:46:35,160 --> 00:46:36,279
Speaker 3: Yeah, And I don't know.

1068
00:46:36,360 --> 00:46:38,719
Speaker 2: I'm just highlighting the fact that you don't necessarily have

1069
00:46:38,880 --> 00:46:40,840
Speaker 2: to go out and buy something. You can even just

1070
00:46:40,960 --> 00:46:43,840
Speaker 2: maintain a vehicle, find a way. No one likes the

1071
00:46:43,920 --> 00:46:46,400
Speaker 2: nickel and diamond that comes with maintaining an old vehicle.

1072
00:46:46,520 --> 00:46:48,840
Speaker 2: But it's not a foregone conclusion that you have to

1073
00:46:48,840 --> 00:46:51,279
Speaker 2: go and drop thirty five brand on a new car.

1074
00:46:51,320 --> 00:46:53,560
Speaker 1: And let's be honest, if you can just string it

1075
00:46:53,600 --> 00:46:56,240
Speaker 1: along for another two years while you get through this pinch,

1076
00:46:56,680 --> 00:46:58,960
Speaker 1: then I think you're right, Like, it just opens up

1077
00:46:58,960 --> 00:47:02,879
Speaker 1: a world of alternatives because by then you are pretty

1078
00:47:02,960 --> 00:47:06,680
Speaker 1: darn close to paying off the mortgage altogether, and you

1079
00:47:07,160 --> 00:47:11,000
Speaker 1: have more financial breathing room to be able to afford

1080
00:47:11,560 --> 00:47:14,439
Speaker 1: than upgrading the car in a way that feels less

1081
00:47:14,480 --> 00:47:19,000
Speaker 1: financially irresponsible. So yeah, maybe challenge yourself to spend less

1082
00:47:19,040 --> 00:47:21,399
Speaker 1: on the car fifteen to twenty thousand dollars, and if

1083
00:47:21,440 --> 00:47:23,080
Speaker 1: you do have to take out a loan for that,

1084
00:47:23,160 --> 00:47:25,120
Speaker 1: a car loan, make sure you're able to pay off

1085
00:47:25,320 --> 00:47:27,520
Speaker 1: twenty four to thirty six months. I don't love car

1086
00:47:27,560 --> 00:47:30,040
Speaker 1: loans either, but I also get where it's like, oh,

1087
00:47:30,080 --> 00:47:32,799
Speaker 1: if it helps me prevent some sort of and get

1088
00:47:32,840 --> 00:47:35,440
Speaker 1: it from a credit union, if it helps me prevent

1089
00:47:35,520 --> 00:47:37,560
Speaker 1: worse kinds of debt in my life, and it also

1090
00:47:37,600 --> 00:47:40,520
Speaker 1: allows me to keep those investments intact longer, I get that.

1091
00:47:41,320 --> 00:47:44,440
Speaker 1: But again, the IRA, the inherited IRA, is going to

1092
00:47:44,440 --> 00:47:47,799
Speaker 1: have to be dispersed anyway. So I just see that

1093
00:47:47,880 --> 00:47:51,120
Speaker 1: as probably the best reservoir to tap for some of

1094
00:47:51,160 --> 00:47:51,600
Speaker 1: these funds.

1095
00:47:51,640 --> 00:47:52,200
Speaker 3: That's right, man.

1096
00:47:52,280 --> 00:47:54,319
Speaker 2: Yeah, Adam's got a lot of levers here that he

1097
00:47:54,360 --> 00:47:56,600
Speaker 2: can pull. I think I don't know funny ways to

1098
00:47:56,640 --> 00:47:57,719
Speaker 2: cut back, and I just.

1099
00:47:57,680 --> 00:48:00,120
Speaker 1: Love the idea by the way of questioning assumptions. I

1100
00:48:00,160 --> 00:48:02,120
Speaker 1: think the average. We see what the average car price

1101
00:48:02,160 --> 00:48:04,359
Speaker 1: is for a new car and used car, and we say, oh,

1102
00:48:04,360 --> 00:48:06,880
Speaker 1: I'll probably get something that's average. But the truth to

1103
00:48:07,360 --> 00:48:09,440
Speaker 1: the way to succeed financially is to do things that

1104
00:48:09,560 --> 00:48:13,880
Speaker 1: are better than average. And I think even just thinking about,

1105
00:48:13,880 --> 00:48:16,080
Speaker 1: like you said, Matt, reducing the price you're willing to

1106
00:48:16,080 --> 00:48:19,319
Speaker 1: pay for a car significantly, questioning that again is such

1107
00:48:19,360 --> 00:48:22,279
Speaker 1: a powerful lever for people to pull in Adam's life.

1108
00:48:22,320 --> 00:48:23,680
Speaker 1: Put everyone else out there listening to.

1109
00:48:23,960 --> 00:48:26,920
Speaker 2: And speaking of credit unions, which you just mentioned. I'm

1110
00:48:27,000 --> 00:48:30,520
Speaker 2: drinking my coffee this morning out of a Navy Federal

1111
00:48:30,560 --> 00:48:33,359
Speaker 2: credit union little insulated mug here that they they love

1112
00:48:33,400 --> 00:48:37,000
Speaker 2: sending us little goodies since we read for them. Yeah, show,

1113
00:48:37,000 --> 00:48:38,160
Speaker 2: because credit unions are the best.

1114
00:48:38,320 --> 00:48:38,759
Speaker 3: We do love that.

1115
00:48:38,800 --> 00:48:41,480
Speaker 2: Credit union's absolutely the place you should be going. In particular,

1116
00:48:41,520 --> 00:48:43,719
Speaker 2: if you're looking for loan products. But what do you

1117
00:48:43,760 --> 00:48:44,799
Speaker 2: think of our coffee this morning?

1118
00:48:44,880 --> 00:48:45,120
Speaker 3: Joel?

1119
00:48:45,440 --> 00:48:47,800
Speaker 1: So, I am not a coffee connoisseur at your level.

1120
00:48:47,880 --> 00:48:51,959
Speaker 1: You like this states like the brown bean water to you?

1121
00:48:51,960 --> 00:48:53,080
Speaker 3: No, I being juiced.

1122
00:48:53,120 --> 00:48:55,400
Speaker 1: I love coffee, I just don't I don't know if

1123
00:48:55,400 --> 00:48:56,920
Speaker 1: I can pick apart it's nuanced as well as you

1124
00:48:56,960 --> 00:49:01,839
Speaker 1: get this one tasted fruity, I'm gonna say, okay, yeah, good, So.

1125
00:49:01,800 --> 00:49:03,799
Speaker 2: This is yeah, this is like a just a nice

1126
00:49:03,800 --> 00:49:06,960
Speaker 2: solid Honestly, I forget what this one is called by methodical,

1127
00:49:06,960 --> 00:49:09,359
Speaker 2: but it's a nice medium roast. It's got some milk

1128
00:49:09,440 --> 00:49:11,040
Speaker 2: chocolate e kind of eyes, but it does have some

1129
00:49:11,080 --> 00:49:13,200
Speaker 2: berry notes cherry maybe.

1130
00:49:13,280 --> 00:49:13,760
Speaker 6: Yeah.

1131
00:49:13,880 --> 00:49:14,120
Speaker 1: Yeah.

1132
00:49:14,160 --> 00:49:16,160
Speaker 2: I like adding just like a little touch of sugar

1133
00:49:16,200 --> 00:49:18,319
Speaker 2: to these medium roast to kind of pull out some

1134
00:49:18,400 --> 00:49:21,319
Speaker 2: of that berry fruit, some of those notes that you

1135
00:49:21,320 --> 00:49:24,719
Speaker 2: can typically because if you if not, sometimes they fall

1136
00:49:24,719 --> 00:49:25,840
Speaker 2: a little flat and they just say it's like a

1137
00:49:25,840 --> 00:49:27,680
Speaker 2: weak cup of coffee because it's not. It's not going

1138
00:49:27,719 --> 00:49:31,319
Speaker 2: to have like that super dark roasty you know, Starbucks

1139
00:49:31,440 --> 00:49:32,120
Speaker 2: espresso roast.

1140
00:49:32,200 --> 00:49:34,600
Speaker 1: I'm totally okay with it because that stuff just it

1141
00:49:35,120 --> 00:49:38,440
Speaker 1: tastes over to me. I cannot do the dark roast anymore,

1142
00:49:38,480 --> 00:49:40,560
Speaker 1: and sadly at Costco that's like all you can get

1143
00:49:40,640 --> 00:49:42,240
Speaker 1: is super dark roast coffee.

1144
00:49:42,600 --> 00:49:43,280
Speaker 3: I know that myself.

1145
00:49:43,400 --> 00:49:46,560
Speaker 1: Unless you order online. They have different coffees available online.

1146
00:49:46,600 --> 00:49:49,719
Speaker 1: So I buy my Costco coffee online because they have

1147
00:49:49,760 --> 00:49:52,040
Speaker 1: some like medium to medium light roast coffees on there.

1148
00:49:51,920 --> 00:49:53,800
Speaker 2: Because that was one of my assignments once we joined

1149
00:49:53,800 --> 00:49:56,600
Speaker 2: Costco a couple of years ago, were we'd never been members,

1150
00:49:56,600 --> 00:49:58,600
Speaker 2: and I thought, Okay, I want to find myself a

1151
00:49:58,680 --> 00:50:02,120
Speaker 2: really good medium roast coffee here at Costco. That's going

1152
00:50:02,200 --> 00:50:04,160
Speaker 2: to be crazy affordable, but that is good.

1153
00:50:04,280 --> 00:50:04,600
Speaker 3: Yeah.

1154
00:50:04,640 --> 00:50:06,520
Speaker 2: It turns out all even their medium what they call

1155
00:50:06,560 --> 00:50:08,880
Speaker 2: medium roast, they are pretty dang dark and they're oily,

1156
00:50:08,960 --> 00:50:11,120
Speaker 2: which means on the nicer grinders, like you know, we've

1157
00:50:11,120 --> 00:50:14,480
Speaker 2: got a nice flat blade berg grinder and it tends.

1158
00:50:14,160 --> 00:50:15,360
Speaker 3: To cause trouble.

1159
00:50:15,440 --> 00:50:17,759
Speaker 1: All right, Well, all those oils, there is one that

1160
00:50:17,760 --> 00:50:19,440
Speaker 1: I saw on their website. I've not ordered yet. It's

1161
00:50:19,440 --> 00:50:21,000
Speaker 1: a light medium roast. I think we'll say it's a

1162
00:50:21,040 --> 00:50:22,960
Speaker 1: lot of mauling, and so I'm going to order that

1163
00:50:23,000 --> 00:50:25,279
Speaker 1: and we're gonna split it and I do it. Well,

1164
00:50:25,320 --> 00:50:27,600
Speaker 1: we'll try that maybe on the show soon. Yeah, absolutely, okay,

1165
00:50:28,080 --> 00:50:31,960
Speaker 1: and we'll report. But next week you can expect another beer. Cool, Yeah,

1166
00:50:32,000 --> 00:50:34,839
Speaker 1: because I over the holidays a few weeks ago picked

1167
00:50:34,880 --> 00:50:36,799
Speaker 1: up some some nicer beer, So I'm excited to drink

1168
00:50:36,840 --> 00:50:38,239
Speaker 1: some of those, buddy, Time to open those up?

1169
00:50:38,360 --> 00:50:38,640
Speaker 3: All right?

1170
00:50:38,680 --> 00:50:41,840
Speaker 1: Well, yeah, as always, we appreciate you submitting your questions

1171
00:50:41,840 --> 00:50:44,040
Speaker 1: and if you have a money question, and especially if

1172
00:50:44,040 --> 00:50:45,560
Speaker 1: you're new here and you're like, man, I don't I

1173
00:50:45,600 --> 00:50:47,319
Speaker 1: don't know where to start. I'm just getting started with

1174
00:50:47,360 --> 00:50:49,880
Speaker 1: my finances and I would love Matt and Joel's input

1175
00:50:49,960 --> 00:50:52,080
Speaker 1: on kind of like where I'm at right now.

1176
00:50:52,800 --> 00:50:55,680
Speaker 3: I love hot takes, shock jock style.

1177
00:50:56,239 --> 00:50:57,839
Speaker 1: Yeah, we would love for you to submit that, And

1178
00:50:57,920 --> 00:51:00,200
Speaker 1: if you have questions about how to do that, you

1179
00:51:00,200 --> 00:51:02,160
Speaker 1: can go to howdomoney dot com slash.

1180
00:51:02,040 --> 00:51:03,080
Speaker 3: Ask for instructions.

1181
00:51:03,120 --> 00:51:05,359
Speaker 1: But it's basically recording a voice memo on the app

1182
00:51:05,400 --> 00:51:07,640
Speaker 1: on your phone, sending it over to us via email

1183
00:51:07,640 --> 00:51:09,080
Speaker 1: and we look forward to hear from you. Hopefully we

1184
00:51:09,080 --> 00:51:12,279
Speaker 1: can take your question next week on the show. But Matt,

1185
00:51:12,320 --> 00:51:14,319
Speaker 1: that's going to do it for this one. Until next time.

1186
00:51:14,680 --> 00:51:16,640
Speaker 1: Best Friends Out, Best Friends Out,