WEBVTT - Friday Flight - Longer Loans, Prepaying Principal, & Higher Heating Bills #894 0:00:00.080 --> 0:00:03.000 Welcome to Head of Money. I'm Joel, I am Matt. 0:00:03.040 --> 0:00:06.760 Today we're talking about longer loans, pre paying principle, and 0:00:06.880 --> 0:00:28.560 higher heating bills. That's right, buddy. This is our Friday Flight, 0:00:28.680 --> 0:00:31.720 the weekly round up, our weekly roundup of the news 0:00:31.760 --> 0:00:34.720 and how it pertains to your personal finances, so that 0:00:34.760 --> 0:00:37.360 you don't have to spend all of your life combing 0:00:37.360 --> 0:00:39.360 through the headlines and the articles to find the ones 0:00:39.640 --> 0:00:41.000 that are going to impact your bank account. 0:00:41.040 --> 0:00:42.919 I pick the most important stuff, share it with you 0:00:43.120 --> 0:00:45.880 and stuff, and we offer our hot takes. 0:00:45.400 --> 0:00:48.640 It's kind of what we do. Honestly, you want to 0:00:48.680 --> 0:00:51.640 kick things off. Speaking of hot takes. With the Federal 0:00:51.680 --> 0:00:53.880 Trade Commission, we might disagree. 0:00:53.440 --> 0:00:55.400 On this because I know you know we're going to disagree. 0:00:55.440 --> 0:00:57.760 You disaground this, but I think this is potentially a 0:00:57.760 --> 0:00:59.800 really good thing. The FTC just announced this week that 0:00:59.800 --> 0:01:02.600 they're going to do a click to a click to 0:01:02.640 --> 0:01:06.840 cancel rule. And basically what the FDC wants is for 0:01:06.920 --> 0:01:09.840 companies to not be allowed to if they make it 0:01:09.880 --> 0:01:11.800 really easy to sign up on their website or via 0:01:11.840 --> 0:01:13.560 their app. Hey guess what they need to make it 0:01:13.640 --> 0:01:16.240 just as easy to cancel, and I think it was 0:01:16.280 --> 0:01:18.880 earlier this year met the cable companies testified in front 0:01:18.880 --> 0:01:21.000 of the FTC and they basically said, listen, if we 0:01:21.000 --> 0:01:23.200 make it easy to cancel, then people are actually going 0:01:23.240 --> 0:01:25.400 to cancel our service, and we don't want that. And 0:01:25.440 --> 0:01:28.119 the FTC was like, that's the point, so that people 0:01:28.120 --> 0:01:30.319 can cancel if they want to. And I think the 0:01:30.360 --> 0:01:34.480 cable companies actually retain a massive number of people who 0:01:34.480 --> 0:01:36.840 try to cancel because they call to cancel, they're forced 0:01:36.880 --> 0:01:39.280 to call, they can't they can't use, you know, go 0:01:39.319 --> 0:01:42.160 to the internet website of the provider and cancel, and 0:01:42.200 --> 0:01:44.120 because of that, they end up talking them in or 0:01:44.120 --> 0:01:46.080 they offer him a deal or something like that. It's 0:01:46.080 --> 0:01:47.680 just this rig and role that I think consumers are 0:01:47.720 --> 0:01:50.120 tired of in many ways. I just tried to cancel 0:01:50.160 --> 0:01:53.040 something the other day, a streaming service, and it was 0:01:53.080 --> 0:01:55.160 like hard to find the grade out cancel button at 0:01:55.160 --> 0:01:55.600 the bottom. 0:01:55.640 --> 0:01:57.280 And there's like six steps that you have to go through. 0:01:57.280 --> 0:01:59.080 When it's like the same color as the background, right, 0:02:00.280 --> 0:02:02.720 it's literally impossible unless I select all and then I 0:02:02.760 --> 0:02:03.680 see it highlight right. 0:02:03.760 --> 0:02:05.440 It's like trying to find the unsubscribed button on the 0:02:05.480 --> 0:02:07.920 bottom of an email sometimes it's like finding ale in 0:02:08.000 --> 0:02:11.760 a haysack. But so I kind of like this, it's 0:02:11.840 --> 0:02:14.400 not set in stone yet. There's like six months I 0:02:14.400 --> 0:02:17.799 think before this becomes official. You just had actually trouble 0:02:17.800 --> 0:02:20.440 canceling a gym membership, and. 0:02:19.760 --> 0:02:21.119 So we're not gonna talk about that though. 0:02:22.200 --> 0:02:24.440 But actually that's one of the things is gym's make 0:02:24.480 --> 0:02:27.120 it really hard to cancel. People end up sticking around 0:02:27.120 --> 0:02:29.800 pay an extra, whereas if they made it easier to cancel, 0:02:29.840 --> 0:02:32.800 I think people would be They wouldn't find themselves paying 0:02:32.840 --> 0:02:34.640 for stuff that they're not getting or that they don't want. 0:02:34.880 --> 0:02:36.760 Yeah, I am of two minds with it, because I 0:02:36.760 --> 0:02:39.640 certainly understand. I see the appeal right the ability to 0:02:39.680 --> 0:02:42.040 cancel the same way that you subscribed. It makes it's 0:02:42.040 --> 0:02:44.280 common sense. But at the same time, I just don't 0:02:44.360 --> 0:02:47.040 like how we've arrived at that point. Like I like 0:02:47.080 --> 0:02:49.120 the result and what the end result might be, but 0:02:49.240 --> 0:02:51.799 instead of the government getting involved, obviously, I would rather 0:02:51.800 --> 0:02:54.639 see the free and open market decide and the ability 0:02:54.639 --> 0:02:57.840 for us as consumers to vote with our dollars or 0:02:57.919 --> 0:03:00.720 leave a review, a negative review, cant or with our 0:03:00.760 --> 0:03:02.359 dollars because they're making it so hard for us to 0:03:02.440 --> 0:03:04.720 leave because your dollars are all tied up. Yeah, but 0:03:04.960 --> 0:03:06.960 just the ability to tell your friends about it, I 0:03:06.960 --> 0:03:10.919 think is it's just a simpler, more straightforward way of 0:03:11.520 --> 0:03:14.280 achieving the same ends as opposed to what I see 0:03:14.320 --> 0:03:18.680 being the more complex, expensive way to achieve this sense 0:03:18.760 --> 0:03:22.800 by having a government agency potentially enforce this, because what 0:03:22.800 --> 0:03:24.640 does that actually look like, the government to step in 0:03:24.680 --> 0:03:27.080 and say, hey, they'll do business like this, Like, that's 0:03:27.120 --> 0:03:29.040 the part of it that that turns me off, and 0:03:29.040 --> 0:03:31.639 I would rather see consumers be able to vote with 0:03:31.639 --> 0:03:34.960 your dollars. Yeah. But either way though, I mean, we'll see. 0:03:35.080 --> 0:03:37.640 And obviously if it goes through, and it's a part 0:03:37.720 --> 0:03:42.400 of how businesses are forced to implement some of these changes, 0:03:42.440 --> 0:03:44.480 I'm all for it because it's like, okay, well if 0:03:44.480 --> 0:03:47.000 that's if that's the rule, then we abide by the 0:03:47.080 --> 0:03:49.640 rule and we all get to benefit. In this case 0:03:49.840 --> 0:03:52.360 as a consumer, Yeah, I'll be thankful for it. And 0:03:53.440 --> 0:03:55.640 I think, yeah, if you want to cancel your service, 0:03:56.040 --> 0:03:58.520 it should be you shouldn't have to go to an 0:03:58.520 --> 0:04:00.760 AI bought and chat and and jump through a bunch 0:04:00.760 --> 0:04:03.400 of hoops. When it was they made it super simple 0:04:03.440 --> 0:04:05.080 to sign up. That to me feels kind of like 0:04:05.080 --> 0:04:07.720 a bait and switch, and I think it's a dirty practice. Yeah, 0:04:08.080 --> 0:04:10.400 I just think there are better ways for businesses to 0:04:10.800 --> 0:04:12.840 run their businesses. This makes me think of a kind 0:04:12.840 --> 0:04:14.640 of a random story that we came across this week, 0:04:14.800 --> 0:04:18.119 Home Depot. What they're doing now. They're having their corporate folks, 0:04:18.200 --> 0:04:20.760 their corporate employees, and the CEO is the one who 0:04:20.880 --> 0:04:22.760 implemented this. But they have to go to an actual 0:04:22.760 --> 0:04:26.159 home Depot store to work once a quarter. And the 0:04:26.240 --> 0:04:28.440 goal here is for the people who might be a 0:04:28.440 --> 0:04:30.839 bit more detached from the end product and for the 0:04:30.880 --> 0:04:33.839 services that they're providing to be more connected to you know, 0:04:33.839 --> 0:04:36.360 what the boots on the ground are actually encountering. And 0:04:36.480 --> 0:04:38.840 I think this can only be good for morale and 0:04:39.080 --> 0:04:41.240 for business. This is a smart business move, Yes, And 0:04:41.320 --> 0:04:43.400 this is like the perfect example I think of how 0:04:43.560 --> 0:04:45.839 instead of this being some like mandated from on high, 0:04:45.839 --> 0:04:49.160 from like a government agency, here is an individual company deciding, 0:04:49.360 --> 0:04:50.840 you know what we need to get. We need to 0:04:50.920 --> 0:04:52.200 be more in touch with how it is that our 0:04:52.200 --> 0:04:54.240 consumers are seeing the end product, and that is going 0:04:54.240 --> 0:04:55.760 to allow us to innovate. It's going to allow us 0:04:55.760 --> 0:04:57.880 to make changes. We're going to be able to see that, like, oh, 0:04:58.000 --> 0:04:59.920 we don't like it when we make whatever it is 0:05:00.080 --> 0:05:01.760 is at a home Depot story right, And like, well, 0:05:01.800 --> 0:05:03.800 I hate it that we make customers stand over here 0:05:03.839 --> 0:05:05.400 when they're making returns. Why can't we do this? And 0:05:05.560 --> 0:05:07.559 like there are these small little tweaks along the way 0:05:07.839 --> 0:05:08.680 that you can implement. 0:05:09.120 --> 0:05:11.919 And I think in big companies it's really easy for 0:05:12.080 --> 0:05:15.360 the people at the top to get out of become 0:05:15.400 --> 0:05:17.839 out of touch with what's happening at maybe the individual 0:05:17.839 --> 0:05:20.760 retail locations. And like Sam Walton was famous for visiting 0:05:20.839 --> 0:05:23.720 like all the Walmarts and even visiting his competitors and 0:05:23.720 --> 0:05:26.080 stuff like that too, to get a sense for what's 0:05:26.080 --> 0:05:28.440 happening on the ground level. And I think many CEOs 0:05:28.440 --> 0:05:30.120 don't do that. So the fact that Home Depot is 0:05:30.120 --> 0:05:31.920 doing it feels like kind of like that the show 0:05:32.000 --> 0:05:35.240 Undercover Boss now, where the CEO would dress up and 0:05:35.279 --> 0:05:37.520 work like a day in the minds or something like 0:05:37.560 --> 0:05:41.039 that with the normies that worked for the company. And 0:05:41.080 --> 0:05:43.440 I think that's a good thing. All the pleabs, I 0:05:43.440 --> 0:05:46.040 think that's a great thing. Like Home Depot will probably 0:05:46.720 --> 0:05:49.159 benefit from this as a post. 0:05:48.960 --> 0:05:50.640 And so what we'll see is a business like home 0:05:50.680 --> 0:05:53.040 deepot continue to innovate and do well. Their stocks will 0:05:53.080 --> 0:05:56.240 continue to go up, customer service is going to remain high. 0:05:56.279 --> 0:05:59.040 And then if you see other companies that aren't innovating, 0:05:59.120 --> 0:06:01.560 like I think us all that Kmart is, they've got 0:06:01.600 --> 0:06:03.920 like one more store or something that's going to end 0:06:03.960 --> 0:06:06.880 up closing. Amazing. That's an example of a store that 0:06:06.880 --> 0:06:09.040 that didn't do that didn't keep up with the times exactly. 0:06:09.080 --> 0:06:10.200 And so it's up to the I think it can 0:06:10.320 --> 0:06:12.160 serve their customer well, were on a company company to 0:06:12.240 --> 0:06:15.160 company level as opposed to it being something that needs 0:06:15.160 --> 0:06:16.280 to be mandated from on high. 0:06:16.360 --> 0:06:18.279 Yeah, let's talk about something else, Matt. Let's talk about 0:06:18.320 --> 0:06:20.080 car Loans. We don't like them. 0:06:20.120 --> 0:06:20.600 I hate them. 0:06:20.600 --> 0:06:23.599 We've never liked them. We talked smack about them regularly 0:06:23.680 --> 0:06:26.680 on the show. And it's it's one of those things 0:06:26.680 --> 0:06:28.840 where it has been a problem in the past, and 0:06:28.839 --> 0:06:31.960 it's this problem is getting worse because as car prices 0:06:31.960 --> 0:06:34.520 have risen, interest rates have also gone up, and so 0:06:34.640 --> 0:06:36.800 car affordability has one of the been one of the 0:06:36.839 --> 0:06:41.400 biggest categories, the hardest hit categories by inflation. So yeah, eggs. 0:06:41.640 --> 0:06:44.800 It stinks that those costs more, but the car probably 0:06:44.880 --> 0:06:47.560 impacts your budget far more than just the eggs, and 0:06:47.600 --> 0:06:49.880 it's it's just not a fun situation right to be 0:06:49.960 --> 0:06:53.719 in if you're looking to upgrade your vehicle, because you're 0:06:53.839 --> 0:06:55.960 staring at the price tag the bottom line and you're 0:06:55.960 --> 0:06:57.839 freaking out. You're not used to paying this much for 0:06:57.839 --> 0:06:59.560 a car, especially if it's been five, six, seven years 0:06:59.600 --> 0:07:00.800 since you've had buy one. 0:07:00.720 --> 0:07:01.919 Hopefully even longer. 0:07:01.920 --> 0:07:04.479 Hopefully even longer. While you drive your car, you don't 0:07:04.520 --> 0:07:06.560 have to put up with this problem. But new numbers 0:07:06.560 --> 0:07:11.080 from Edmunds find that people aren't necessarily trading down to 0:07:11.160 --> 0:07:14.880 a cheaper automobile or saving up longer. What they're doing 0:07:15.120 --> 0:07:17.760 is they're increasing the payoff timeline so that they can 0:07:17.800 --> 0:07:20.560 snag the car they want. This is really bad. 0:07:20.400 --> 0:07:22.600 News in our estimation see here in this. 0:07:22.560 --> 0:07:25.640 Eighty four month car loans now account for almost one 0:07:25.680 --> 0:07:28.440 in five of the overall loans that were issued in 0:07:28.480 --> 0:07:31.320 just this past quarter. That has doubled in just the 0:07:31.320 --> 0:07:34.880 past few years, and then so the average car loan 0:07:35.000 --> 0:07:37.520 length is now sixty eight months Matt, so people are 0:07:37.560 --> 0:07:40.000 a lot more people opting for the eighty four, but 0:07:40.040 --> 0:07:42.240 the average is sixty eight. That's more than five and 0:07:42.240 --> 0:07:45.000 a half years to pay off the car that you're buying. 0:07:45.560 --> 0:07:48.960 Outrageously bad news, and it could come with serious financial 0:07:48.960 --> 0:07:51.560 consequences for people down the line. On top of that, 0:07:52.040 --> 0:07:54.960 nearly one in four consumers owe more on their car 0:07:55.040 --> 0:07:57.400 loan than the vehicle is worth, so they're upside down 0:07:57.840 --> 0:08:00.360 in their ride. Something like twenty twenty five, twenty six, 0:08:00.360 --> 0:08:03.080 twenty seven percent of people upside down on their vehicles. 0:08:03.280 --> 0:08:07.280 The national average for upside down balances is sixty four 0:08:07.480 --> 0:08:09.920 one hundred dollars. So talk about being in financial trouble 0:08:10.080 --> 0:08:11.560 when you own more than the car is worth. If 0:08:11.600 --> 0:08:13.680 you're in an act terrible or if you feel like you 0:08:13.720 --> 0:08:15.720 need to trade your car up, sorry, you still owe 0:08:15.720 --> 0:08:17.520 a bunch of money on it. That gets people into 0:08:17.720 --> 0:08:19.640 even worse car loans when they trade it in and 0:08:19.640 --> 0:08:21.400 they get another car on top of. 0:08:21.320 --> 0:08:24.760 That, then it perpetuates. It creates a six cycle, and 0:08:24.800 --> 0:08:27.040 we want people to avoid car loans all together. We 0:08:27.080 --> 0:08:29.240 want you to keep your current car on the road. 0:08:29.640 --> 0:08:33.440 Maintaining your vehicles highly underrated. Everybody wants to hit the 0:08:33.440 --> 0:08:37.280 easy button, and what easy means is expensive signing up 0:08:37.280 --> 0:08:39.719 for a new loan to where they don't have to 0:08:39.760 --> 0:08:42.280 like take the car into the shop. Like literally this morning, 0:08:42.400 --> 0:08:44.920 I spent like five ten minutes the car. The tire 0:08:45.120 --> 0:08:47.160 pressure gauge light came on on the dash and I 0:08:47.160 --> 0:08:48.720 ignored it for a couple of days, and Kate was like, hey, 0:08:48.760 --> 0:08:50.800 what's that all about. I'm like, okay, I finally get 0:08:50.840 --> 0:08:53.640 to it. But most people don't like even doing that. 0:08:53.760 --> 0:08:56.640 But spending some time, even if it's cold outside, to 0:08:56.840 --> 0:08:59.520 get out there and get the tire pressure backup means 0:08:59.559 --> 0:09:01.319 those tires are going to last longer. But we need 0:09:01.320 --> 0:09:03.560 to do that with all aspects of our car. But 0:09:03.600 --> 0:09:06.000 then if you eventually do want to get a new vehicle, 0:09:06.080 --> 0:09:08.119 just keep saving up. If you can be the opposite 0:09:08.400 --> 0:09:10.160 of the average American on this front, if you can 0:09:10.200 --> 0:09:13.040 stay disciplined to keep car debt out of your life, 0:09:13.040 --> 0:09:15.840 you're going to be shocked at how this single choice, 0:09:15.920 --> 0:09:17.600 just as one choice, can help you to make financial 0:09:17.600 --> 0:09:20.520 progress in leaps and bounds. Yea, as a friend of 0:09:20.559 --> 0:09:22.400 the show car dealership Guy, he said this in his 0:09:22.440 --> 0:09:25.480 new newsletter. I'll quote this. He wrote, Longer loan terms 0:09:25.520 --> 0:09:28.079 can make monthly payments easier to manage. Sure, that's why 0:09:28.080 --> 0:09:30.560 people do it. Yeah, but most Americans aren't looking to 0:09:30.600 --> 0:09:33.400 hold onto their cars for seven years. The real risk 0:09:33.520 --> 0:09:36.520 is that these extended loans increase the chance of carrying 0:09:36.559 --> 0:09:39.600 negative equity into their next purchase if they even keep 0:09:39.679 --> 0:09:41.800 up with their payments in the first place, which is 0:09:41.920 --> 0:09:44.720 one hundred percent true. So we don't want you to 0:09:44.760 --> 0:09:48.000 put yourself in this position. I think Joel would say, Hey, 0:09:48.240 --> 0:09:49.880 it's so, if you're going to get a loan, make 0:09:49.880 --> 0:09:52.199 sure to limit it to you know, forty eight months 0:09:52.240 --> 0:09:54.760 or maybe or less. Certainly that's much better than the 0:09:54.800 --> 0:09:58.040 seven year terms car even a smaller loan term. But man, 0:09:58.120 --> 0:10:01.160 you can get reliable vehicles by saving up cash. I 0:10:01.200 --> 0:10:03.480 think most Americans who are finding themselves in a position 0:10:03.520 --> 0:10:06.040 where they're looking at a new vehicle aren't in a 0:10:06.240 --> 0:10:09.320 highly urgent situation. Uh. And instead it's more of a 0:10:09.360 --> 0:10:13.040 lifestyle upgrade. And they're more Americans are financing these lifestyle upgrades. 0:10:13.080 --> 0:10:13.840 And that's what I hate seeing. 0:10:13.880 --> 0:10:17.120 And I think just because it's become normal, just because 0:10:17.400 --> 0:10:19.120 everybody's doing it. I mean, I don't know if your 0:10:19.160 --> 0:10:20.520 mom ever said this to you, map, but my mom 0:10:20.559 --> 0:10:22.480 but always yeah, just because everyone else is doing it. 0:10:22.679 --> 0:10:24.360 I mean, you're going to do it too. If Matt 0:10:24.440 --> 0:10:26.040 jumped off a bridge, Joel, would you do it too? 0:10:26.040 --> 0:10:27.680 And I'd be like, I don't know, maybe if there's 0:10:27.720 --> 0:10:29.360 water below and it looks kind of fun, it's only 0:10:29.400 --> 0:10:31.320 like thirty feet. Sure, I was actually really into that 0:10:31.440 --> 0:10:33.520 high school you were in a bridge jumping, so maybe 0:10:33.520 --> 0:10:35.679 I would mom. And maybe I'm actually undermining my own 0:10:35.720 --> 0:10:37.760 point here, but yeah, if everyone else is. 0:10:37.720 --> 0:10:40.439 Doing what I failed to Dijoel was oftentimes check the water, 0:10:40.800 --> 0:10:44.079 like for down trees, that's that's oh really, Oh yeah, 0:10:44.160 --> 0:10:45.880 you gotta you gotta do that. If you're gonna do 0:10:45.920 --> 0:10:48.520 some like cliff jumping, rock jumping at the lake, trestle 0:10:48.880 --> 0:10:51.120 train trestle jumping, you always need to check the water, 0:10:51.240 --> 0:10:53.880 makes sense, make sure it's clear of any debris. 0:10:53.480 --> 0:10:55.200 And r or else you can have a major accident, 0:10:55.240 --> 0:10:58.400 right exactly exactly, So I think I think you've gone 0:10:58.400 --> 0:10:59.280 as straight here from my point. 0:10:59.280 --> 0:11:02.360 Matt all sorts of it amount of money, how to 0:11:02.400 --> 0:11:04.040 save money by not going to the hospital, But I 0:11:04.080 --> 0:11:05.520 think it's just so normal. 0:11:05.559 --> 0:11:08.120 And when we talk about what the average person should 0:11:08.120 --> 0:11:09.800 spend on their car payment, or if you look at 0:11:09.840 --> 0:11:12.400 like rules of Thumb, typically it's ten percent of your 0:11:12.960 --> 0:11:16.640 overall income should or can go to car stuff. I 0:11:16.640 --> 0:11:18.960 would prefer to be for most folks for that to 0:11:19.000 --> 0:11:21.360 be far smaller, and that just gives you so much 0:11:21.360 --> 0:11:24.120 more flexibility in terms of vacation. You want to go 0:11:24.200 --> 0:11:27.760 on increasing your saving and investment investment rate. So just 0:11:27.800 --> 0:11:30.800 because everybody around you's doing it, doesn't mean that we 0:11:30.800 --> 0:11:33.280 should do it too. And I just see that like 0:11:33.480 --> 0:11:36.840 this current situation for a significant portion of American consumers, 0:11:36.920 --> 0:11:39.760 mat it's untenable and it's going to lead to some 0:11:39.920 --> 0:11:42.720 really horrendous side effects down the road. From a personal 0:11:42.760 --> 0:11:46.959 finance standpoint, So keeping your car expenses and your car 0:11:47.040 --> 0:11:49.440 note if you have to take one on to a minimum, 0:11:49.480 --> 0:11:51.520 and being really thoughtful about, Okay, how long is it 0:11:51.559 --> 0:11:53.080 going to take me to pay this off? And then 0:11:53.120 --> 0:11:55.360 how can I continue to bank that money so that 0:11:55.400 --> 0:11:56.800 I don't ever have to have a car loan in 0:11:56.800 --> 0:11:57.240 the future. 0:11:57.440 --> 0:12:00.880 That's the goal seven year car loans here that daysh 0:12:00.960 --> 0:12:03.920 Let's go ahead and talk about artificial intelligence, Joel, I 0:12:03.960 --> 0:12:07.240 personally don't exactly know. I guess what to think about AI, 0:12:07.440 --> 0:12:10.200 how it will impact our future. Are we all going 0:12:10.280 --> 0:12:12.760 to live in the Matrix someday? I actually don't think so, 0:12:13.120 --> 0:12:15.360 but some folks have if we lived in the Matrix 0:12:15.400 --> 0:12:19.040 and had to watch that movie on repeat. Interesting, I 0:12:19.080 --> 0:12:21.360 haven't thought about that. It's feeling a little too meta. Yeah, 0:12:22.360 --> 0:12:24.280 do our younger listeners even though what the matrix is. 0:12:24.320 --> 0:12:25.720 I'm sure they've heard of it. But if you haven't 0:12:25.720 --> 0:12:27.800 seen it, they have, Like the newer Matrix come out 0:12:27.840 --> 0:12:31.120 a few years ago, right, revolution, Yeah, revolutions, I think 0:12:31.160 --> 0:12:34.439 the only go to fifty year old people. The first 0:12:34.480 --> 0:12:35.920 one still holds up by the way. I think they're 0:12:35.960 --> 0:12:38.720 all decent. But at the time it was like mind 0:12:38.760 --> 0:12:42.520 bending in a way that our minds hadn't been. But 0:12:42.600 --> 0:12:46.400 I enjoyed reading an MIT professor who recently wrote that 0:12:46.800 --> 0:12:49.800 he believes that AI can only do basically five percent 0:12:49.840 --> 0:12:52.400 of all jobs right now. Basically, you're saying it could 0:12:52.480 --> 0:12:55.160 help some folks and replace others, but that is not 0:12:55.400 --> 0:12:58.439 going to like foment and economic revolution that's going to 0:12:58.520 --> 0:13:02.160 render all humans obsolete. And I'll say I'm actually I 0:13:02.160 --> 0:13:04.120 hope he's right, because there have been some recent stories 0:13:04.120 --> 0:13:07.520 about Google's new AI generated podcasts. Have you heard some 0:13:07.559 --> 0:13:09.800 of those, Joel, It's uncanny what they're able to do. 0:13:09.840 --> 0:13:11.839 I'm a little I was quaking in my Adidas when 0:13:11.880 --> 0:13:14.520 I read them. Matt look consered. Actually, are you actually 0:13:14.559 --> 0:13:15.080 worried about that? 0:13:15.200 --> 0:13:17.240 Is that I'm not because I just think I think 0:13:17.280 --> 0:13:21.040 the biggest thing that AI can't do is personality generated. 0:13:21.080 --> 0:13:22.800 So like I can't make it fun, right, I mean, 0:13:22.840 --> 0:13:24.360 they might think they can make it fun, but it's 0:13:24.360 --> 0:13:26.880 going to be this sort of sterile version of fun 0:13:26.880 --> 0:13:29.400 as opposed to like the real stuff that we're experiencing 0:13:29.400 --> 0:13:30.960 in our day to day lives. Think about this. 0:13:30.960 --> 0:13:33.200 Think about how cheap it's gotten to listen to the 0:13:33.240 --> 0:13:36.120 music you want to listen to, whatever album, whatever song, 0:13:36.160 --> 0:13:39.200 whatever artist you want to listen to, deep cuts, no matter. 0:13:39.440 --> 0:13:42.120 You can listen to it for for for your cheap. 0:13:42.840 --> 0:13:44.959 But think about how much money people pay to go 0:13:45.000 --> 0:13:49.360 see a concert in person. It's insane. The yeah, the 0:13:49.400 --> 0:13:52.040 price tag for concerts for big artists and stuff like 0:13:52.080 --> 0:13:54.240 that has gone through the roof. And I think people 0:13:54.280 --> 0:13:57.040 more than ever want authenticity. They want real life, they 0:13:57.040 --> 0:14:00.199 want real people, they want experiences, and I think I 0:14:00.240 --> 0:14:02.320 don't know, hopefully hopefully listening to Matt Joel is in 0:14:02.400 --> 0:14:04.560 experience of sorts that people will want to listen to 0:14:05.240 --> 0:14:07.040 even though they are going to be AI podcasts out there. 0:14:07.080 --> 0:14:09.040 They want a little rougher around the edges, and that's 0:14:09.040 --> 0:14:10.400 what we're able to provide. That's right. 0:14:11.200 --> 0:14:13.280 They want the stumbles, they want the bumbles, they want 0:14:13.320 --> 0:14:14.320 a few ums on occasion. 0:14:14.679 --> 0:14:18.120 I think, so whatever other idiocy we might come up 0:14:18.160 --> 0:14:18.319 with it. 0:14:18.440 --> 0:14:20.640 Yeah, but I think that's a really smart prediction. I 0:14:20.640 --> 0:14:23.520 think that's probably true, Matt. Five percent of jobs interrupted 0:14:23.560 --> 0:14:26.040 significantly by AI. That makes sense to me. I think 0:14:26.080 --> 0:14:29.120 some of the massive doomsayers on AI, I don't know. 0:14:29.200 --> 0:14:32.160 I just I don't see that future to take them seriously. Yeah, 0:14:32.440 --> 0:14:35.760 one industry we'd love to see disrupted by AI is 0:14:35.840 --> 0:14:39.080 real estate. And that's because real estate commissions make it 0:14:39.280 --> 0:14:41.320 so much more expensive. You're buying sell homes, Kirkma, the 0:14:41.360 --> 0:14:42.400 realtors with the pitchforks. 0:14:42.480 --> 0:14:46.400 Yeah, they're like, oh, you're justifying your profession, but you're 0:14:46.440 --> 0:14:48.560 coming after hours, sorry, guys, shirks. 0:14:49.080 --> 0:14:51.440 And that's not because we hate real estate agents and 0:14:51.440 --> 0:14:53.240 we think that and I don't think that that AI 0:14:53.320 --> 0:14:56.600 is going to reduce the need for good realtors, but 0:14:56.640 --> 0:14:59.360 I think it will maybe grease the kids and potentially 0:14:59.400 --> 0:15:03.120 bring commission back into a reasonable range total. And there's 0:15:03.120 --> 0:15:05.960 this new company that's basically trying to bring those costs down. 0:15:06.320 --> 0:15:09.040 It's billing itself as AI for home buying. It's called 0:15:09.400 --> 0:15:11.880 fly Homes. So I was reading an article about this, 0:15:11.960 --> 0:15:15.400 Matt and basically, this company believes that over time, AI 0:15:15.600 --> 0:15:17.480 is going to help answer most of the questions that 0:15:17.520 --> 0:15:19.680 you have about a home that you want to buy. So, hey, 0:15:19.800 --> 0:15:21.560 not only did you find it on Zilo, you got 0:15:21.560 --> 0:15:24.080 some basic information. Now you go to fly homes and 0:15:24.120 --> 0:15:27.040 you're like, hey, has this cross space ever been flooded? 0:15:27.360 --> 0:15:30.480 Or there's other questions you can ask. And this AI 0:15:30.640 --> 0:15:33.000 is going to learn about like apparently all the homes 0:15:33.000 --> 0:15:34.760 in the country, and it's going to be able to 0:15:35.000 --> 0:15:37.080 give you more informations and then I'll help you even 0:15:37.280 --> 0:15:40.040 write an offer. It might even help you negotiate. What 0:15:40.080 --> 0:15:42.840 happens if two ais are negotiating against each other, I 0:15:42.920 --> 0:15:46.840 have no idea. Both of those systems just completely break down, 0:15:46.960 --> 0:15:50.240 and it's like the seventies game or seventies movie wargames. 0:15:50.360 --> 0:15:51.800 You remember that, no, I. 0:15:51.720 --> 0:15:54.720 Don't involve the computer. Ok yeah, I'm playing against itself 0:15:54.760 --> 0:15:57.320 running different scenarios. Okay, yeah, I mean maybe it ends 0:15:57.400 --> 0:16:00.360 up being like that. I don't know if fly homes 0:16:00.400 --> 0:16:02.360 like how if this is ready for primetime, or if 0:16:02.360 --> 0:16:04.720 in a few years, as they continue to make progress, 0:16:04.760 --> 0:16:07.400 will this actually be able to help consumers. I don't 0:16:07.440 --> 0:16:10.680 see artificial intelligence replacing agents now, but I do see 0:16:10.720 --> 0:16:13.320 it becoming maybe an accessory and helping to bring down 0:16:13.360 --> 0:16:17.160 costs for consumers, just maybe a helpful tool for agents 0:16:17.200 --> 0:16:20.240 to maximize their time, a way to reduce the transaction costs, 0:16:20.280 --> 0:16:22.920 because yeah, they're prohibitive in so many ways, and I 0:16:22.960 --> 0:16:25.440 do think they prevent the housing market from being as 0:16:25.440 --> 0:16:27.360 fluid as it could be. The pricing model, like the 0:16:27.400 --> 0:16:29.640 way the pricing structure works or has worked in the 0:16:29.680 --> 0:16:31.480 past when it comes to realtors. That's I think that's 0:16:31.520 --> 0:16:33.400 the biggest thing that's going to get disrupted. And as 0:16:33.440 --> 0:16:35.520 I think about it, the biggest the best parallel that 0:16:35.560 --> 0:16:38.560 I can think of are financial advisors. And in the past, 0:16:38.680 --> 0:16:42.480 typically the structure for payment is assets under management, and 0:16:42.560 --> 0:16:45.560 so if you've got clients and they're worth tons of money, dude, 0:16:45.560 --> 0:16:48.440 you are rolling in it. Yeah, But now the way 0:16:48.480 --> 0:16:50.960 it works. Oftentimes it's a flat fee, so you get 0:16:51.000 --> 0:16:53.840 the services, and maybe it's not yeah, okay, maybe they're 0:16:53.880 --> 0:16:56.000 not taking you out to lunch, maybe you're not going 0:16:56.040 --> 0:16:58.600 golfing with them, and because you're a you're not a 0:16:58.600 --> 0:17:01.120 big high roller or anything like that. But you are being 0:17:01.400 --> 0:17:03.520 provided the services that they're able to provide all of 0:17:03.560 --> 0:17:05.639 their clients, regardless of how much money they make. And 0:17:05.720 --> 0:17:07.399 in a similar way, I think the same might be 0:17:07.440 --> 0:17:10.000 true when it comes to realtors, Like, why just because 0:17:10.040 --> 0:17:12.359 you are selling a house that's eight hundred thousand dollars 0:17:12.400 --> 0:17:14.280 as opposed to four hundred thousand dollars, does that mean 0:17:14.280 --> 0:17:16.280 you should be making twice as much when maybe you 0:17:16.320 --> 0:17:18.600 did it twice the work. I don't think so, and 0:17:18.640 --> 0:17:22.360