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Speaker 1: Welcome to had Money. I'm Joel and I am Matt.

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Speaker 1: Today we're answering you're listener questions.

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Speaker 2: Yeah, so this is Is this the first time we've

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Speaker 2: spoken today? Some days we there are some days when

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Speaker 2: we are well, we both show up early, we go

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Speaker 2: get our coffee, like on Mondays or Tuesdays. When we

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Speaker 2: do that, we always catch up. But then some days

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Speaker 2: if we kind of like if it almost shows up

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Speaker 2: a little bit earlier, the you know, vice versa, and

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Speaker 2: like the other one's kind of working and then like

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Speaker 2: you jumped on a call, like I don't know, I

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Speaker 2: feel like good. We haven't we haven't chatted yet today,

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Speaker 2: so this might be the very friend. Did you go

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Speaker 2: for a run this morning? How was it? Duh? Yes?

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Speaker 1: You know, I was actually just listening to something about

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Speaker 1: habits and.

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Speaker 2: Uh and were you reading some James Clear?

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Speaker 1: No, no, this is a more spiritual minded book. But

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Speaker 1: they're talking about habit formation. And one of the suggestions

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Speaker 1: that's made is that to ditch a bad habit, and

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Speaker 1: this is actually he quotes James Clear in this.

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Speaker 2: Book, there you go s alrdy to get away from him.

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Speaker 1: To dish a habit, you replace it with a good habit,

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Speaker 1: and running has been my good habit, and I will

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Speaker 1: say some bad habits of all.

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Speaker 2: On the waist side, Yeah, you don't smoke nearly as

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Speaker 2: much as you used to, only in the first mile

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Speaker 2: when you're warming up, right right, that's fine. You gotta

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Speaker 2: warm up the lungs and.

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Speaker 1: The mile six quads. You put down the cigarettes.

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Speaker 3: You know.

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Speaker 2: I wanted to share something real quick because last week,

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Speaker 2: are you going to give give me some like old

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Speaker 2: stinky socks or something I did. I did think after

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Speaker 2: the last week, I should have a gift for you

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Speaker 2: this week, but no, no, it's all good. I did

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Speaker 2: think about how I recently, though, purchased some used shoes

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Speaker 2: off of eBay. And when I say use shoes, but

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Speaker 2: you don't see are the very exaggerated air quotes that

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Speaker 2: I'm putting around used because dude, and you've seen these shoes,

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Speaker 2: these jokers where brand new these are? It was I

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Speaker 2: was looking for new trail running shoe right like I'm

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Speaker 2: a big ultra guy and spend some more time out

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Speaker 2: on the trails. Found these temps which I've never worn before, which.

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Speaker 1: I've think one of the specific makes of their shoes.

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Speaker 1: Shoes and bottles or whatever.

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Speaker 2: Uh huh, And so I was like, oh, my gosh,

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Speaker 2: she has a great way to try these bad boys

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Speaker 2: out for forty something dollars. And again, you can always

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Speaker 2: tell because you've they if they include a picture of

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Speaker 2: the bottom of the shoe and you can see like

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Speaker 2: the very fine molding on the you know you got

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Speaker 2: the big treads, but then even within that, they've got

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Speaker 2: like tiny little texture on the actual lugs or whatever. Dude,

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Speaker 2: I knew that these shoes had not been worn. And

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Speaker 2: it's just a great way to keep a bear of

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Speaker 2: shoes from ending up in the landfill. Not to mention it,

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Speaker 2: of course, it's saving me a ton of money. And

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Speaker 2: it's a pair of shoes that maybe I wouldn't have

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Speaker 2: otherwise tried because I'm like, why don't want to drop

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Speaker 2: one hundred and twenty bucks on this thing? Yeah, Like

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Speaker 2: I think now, honestly, they're even more than that. They're

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Speaker 2: like one point fifty one sixty list price. But to

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Speaker 2: be able to try these out and grain and they're

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Speaker 2: an older model. But if you can get behind that, man,

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Speaker 2: if you're okay with that, it's a great way to

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Speaker 2: save a ton of money.

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Speaker 1: How how hard. Is it defined? Is it like finding

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Speaker 1: a needle in a haystack, diamond in the rough, or

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Speaker 1: is it like every time I long on an eBay,

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Speaker 1: I can find a great pair of barely used shoes

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Speaker 1: for like a third of the price, for.

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Speaker 2: About I would say, with ten minutes or less time

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Speaker 2: spent looking, because there are tons of Ultra size nine

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Speaker 2: and a half, which is what I wear. But knowing

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Speaker 2: your I mean that's the other.

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Speaker 1: Person used ultras. Feel free to send them in and

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Speaker 1: mail a mat right now.

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Speaker 2: But I mean that's the other great thing too, if

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Speaker 2: you have a brand that you know, like I just

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Speaker 2: know that the nine and a halfs are gonna fit

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Speaker 2: me perfectly. That's what I'm looking for. And yeah, like

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Speaker 2: you got to kind of wade through some terrible listings

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Speaker 2: where you're just like, dude, you just need to throw

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Speaker 2: those nobody wants those shoes and you got them listed

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Speaker 2: for fifty A lot of those get out of here. Yeah,

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Speaker 2: but then you find yeah, like A I don't know.

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Speaker 2: I think in particular, if you can find I have

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Speaker 2: found the most luck with getting older pairs that are

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Speaker 2: in virtually new condition, like the pair that I'm wearing now,

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Speaker 2: or that I ran in recently with you. I don't

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Speaker 2: think they've ever been worn before, like truly, they had

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Speaker 2: been laced up and maybe they'd been walked around inside

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Speaker 2: to home on carpet or something like that. But so yeah,

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Speaker 2: right now you're earning Temp sixes or something like that.

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Speaker 2: So if you're down with like the tempt twos or

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Speaker 2: one and a half or whatever, hey save a ton

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Speaker 2: of money.

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Speaker 1: And the reason they're probably selling it and not able

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Speaker 1: to get as much is because well, the return window

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Speaker 1: passed even though I didn't wear. And then they're just

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Speaker 1: like cleaning out their closet and they're like, I got

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Speaker 1: to get something for this.

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Speaker 2: They got a salvage some sort of or in this case,

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Speaker 2: I think it's it was someone who That's just what

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Speaker 2: they do. They just find these items and they sell them,

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Speaker 2: so which is a really which means they probably found

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Speaker 2: them either at a garage sale or yard sale or

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Speaker 2: maybe even the thirst store. Yeah, making a ten x profit.

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Speaker 2: So and it's some people for four bucks sell them

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Speaker 2: for forty something. Hey why not?

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Speaker 1: I do love side hustle. So does we talk smack

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Speaker 1: about middlemen? And you know in our society like oh,

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Speaker 1: they're just they're leeching off the system or something.

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Speaker 2: Then to cut.

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Speaker 1: But middlemen kind of making women too middle women. I

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Speaker 1: want to be fair middle people, middle people, middle people

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Speaker 1: people of middle Earth. They they have like they do

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Speaker 1: something to grease the wheels of the system.

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Speaker 2: Where yes, I would not spend the amount of time

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Speaker 2: require to find that pair of shoes, going to all

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Speaker 2: the yard sales or scouring all the different goodwills, and.

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Speaker 1: I'm happy to get their cut.

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Speaker 2: Because they provide me value. Yeah, I don't want to

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Speaker 2: spend my time doing that, but they are happy to

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Speaker 2: they should be paid. Some people love it.

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Speaker 1: Some people are like, please let me go to inter

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Speaker 1: State sale every weekend. Let me hit up the all

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Speaker 1: the thrifts, like at a buddy I think show before

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Speaker 1: that was what that was. What he did for a

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Speaker 1: long time was furniti clothing reseller. Now he's a furniture

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Speaker 1: reseller and he just makes money finding those diamonds in

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Speaker 1: the rough, getting them ship shaped, taking good pictures and

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Speaker 1: guess what hard work. Oh, I can't afford.

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Speaker 2: His folks are willing to drop six thousand on some

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Speaker 2: sort of mid century so far or something. You know, Lounger,

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Speaker 2: it's Yeah, those are the folks who are willing to

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Speaker 2: pay for that.

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Speaker 1: Yeah, some of those pieces are insane. Let's mention the

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Speaker 1: beer we're having on this episode, Matt. This is called

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Speaker 1: wonder Struck. It's a triple I p A, which means

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Speaker 1: it's a beast. This is by Single Speed Brewing, but

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Speaker 1: actually with a couple of their buddies, back Pocket and

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Speaker 1: Piece Tree Brewing Company. So we'll give our thoughts on

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Speaker 1: this when the end of the episode. Another beer from

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Speaker 1: Iowa so Big thanks to listener Clint.

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Speaker 2: Oh yayeah on our way. This looks awesome, by the way,

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Speaker 2: looking forward to it.

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Speaker 1: By the way, if you have a money question we

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Speaker 1: want to hear from you, We want you to record

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Speaker 1: it on the voicemambo app of your phone and to

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Speaker 1: send it directly over to us how to moneypot at

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Speaker 1: gmail dot com. Just say your name at the very beginning,

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Speaker 1: send it on over and hopefully we can take it

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Speaker 1: next week on the show. We love your money questions.

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Speaker 1: We need your money questions in order to be able

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Speaker 1: to pull these episodes off. So if you're like I've

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Speaker 1: had one, I've been ruminating and I've thought about it,

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Speaker 1: but man, it just sounds like a pain. It's actually

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Speaker 1: really easy, real quick, and we'd love to hear from you,

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Speaker 1: So make it happen. All right, Matt, let's get to

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Speaker 1: first question for this episode. This is specifically a question

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Speaker 1: about what's to do when there's more money coming in.

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Speaker 4: Hi, Joel on that. My name is Eric and I'm

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Speaker 4: in Colorado. I'm looking for some money to your advice.

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Speaker 4: My partner and I are twenty nine. We are renters,

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Speaker 4: and we have about six thousand dollars in emergency funds.

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Speaker 4: I work full time, year round. You work seasonally. My

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Speaker 4: job provides a four to one A plan with a

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Speaker 4: six percent match and a standard four to fifty seven

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Speaker 4: B plan but no match. I maximize the four A

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Speaker 4: one A plan to be a little extra to four

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Speaker 4: fifty seven. We just paid off our car loan and

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Speaker 4: we only have one vehicle. I'm excited that I just

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Speaker 4: finished off my student loans. We're wondering with our increase

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Speaker 4: cash flow, what do we focus on. Do we go

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Speaker 4: to Gear four and pad our emergency fund for more

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Speaker 4: cushion and more flexibility? Would you say you want to

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Speaker 4: aim for the three month, six months or a year?

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Speaker 4: With our situation, we are considering should contribute more to

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Speaker 4: my employer offered four to fifty seven B plan or

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Speaker 4: start a separate roth Ira or do we go straight

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Speaker 4: to year seven if we're comfortable enough and start focusing

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Speaker 4: on saving money for getting married. Is it better that

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Speaker 4: we tackle one gear fully at a time or is

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Speaker 4: it okay to put the difference? Thanks for your time,

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Speaker 4: big fan of the show.

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Speaker 2: All right, Joel, Eric trying to figure out what to

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Speaker 2: do next. You know what I just realized too, I

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Speaker 2: didn't share some of the topics we're gonna discuss today.

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Speaker 2: But for instance, we got a listener who's looking to

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Speaker 2: tackle some life goals like saving for retirement, getting married.

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Speaker 1: That's what this one obviously is about.

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Speaker 2: Yeah, but uh yeah, First of all, Eric, the fact

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Speaker 2: that you don't have any student loans, you don't have

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Speaker 2: a car loan. This is going to very much change

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Speaker 2: your monthly financial situation. Honestly, I think everybody who's listening

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Speaker 2: to the show, like all listeners, should get to experience that.

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Speaker 2: So well done there, and yeah, our hope is for

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Speaker 2: you to never have a car loan ever again, to.

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Speaker 1: Feel how good it is, and then want to feel

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Speaker 1: that way.

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Speaker 2: To be free all the time to not have it

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Speaker 2: hanging over your head. I think it might be the

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Speaker 2: single biggest obstacle for a lot of folks to building

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Speaker 2: financial freedom. So yeah, experiencing this payment freedom it should

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Speaker 2: be a nice incentive to keep your car costs low

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Speaker 2: and to encourage you to save up for your future

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Speaker 2: car needs.

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Speaker 1: It's almost like if you've been living your life on

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Speaker 1: not enough sleep, and then for like a week you're

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Speaker 1: on vacation and you get enough rest and you're like, yeah,

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Speaker 1: it feels really good.

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Speaker 2: This is what I'm supposed to feel like.

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Speaker 1: Then go back in to your normal routine and try

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Speaker 1: to carve out an extra hour and a half two

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Speaker 1: hours of sleep so you can feel like that all

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Speaker 1: the time. Matt, I think everybody like differs in their

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Speaker 1: sleep needs, although generally speaking, where we all need roughly.

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Speaker 2: Seven and a half hours.

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Speaker 1: Yeah, yeah, but I've got like, I think I'm one

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Speaker 1: of the people who needs more, Like I think I

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Speaker 1: need at least eight eight and a half is ideal

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Speaker 1: for me.

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Speaker 2: And we end up like was it around Huffington Who's like, oh,

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Speaker 2: I need eleven hours of sleep every night or it's.

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Speaker 1: Not quite there, But my goodness, that would be nice.

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Speaker 1: But I have a friend who swears he can get

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Speaker 1: by on like five and he says, there's like some

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Speaker 1: sort of gene that's morphed in and like something like

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Speaker 1: sub one percent of the population has the ability to

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Speaker 1: continue to.

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Speaker 2: Thrive on less than five hours. Five hours that it's possible.

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Speaker 2: But would life be better? Would you feel slightly less stressed?

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Speaker 2: Would your blood pressure be lower? Would you recover faster?

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Speaker 2: Like all all of these things? Would you be more

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Speaker 2: patient with your kids? Like, there's all these things that

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Speaker 2: could they be better? Where you to actually get a

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Speaker 2: little bit more sleep? I don't know. It's hard to

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Speaker 2: not argue that unless he has done some a B testing.

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Speaker 2: He's like, nope, I'm just as awesome. Well, okay, sorry

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Speaker 2: for the sleep diversion. But it just made me think, like,

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Speaker 2: that's that's what it's like to pay off your car loan.

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Speaker 2: You feel this new freedom.

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Speaker 1: Don't don't go back into that. I feel refreshed. Yeah,

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Speaker 1: people are like great for a little while. I want

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Speaker 1: to have a car loan and then I'll get another

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Speaker 1: one again. At some point it's like, now, just keep

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Speaker 1: avoiding it like that. That's just a good way to live.

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Speaker 1: You don't want that thing that's healthy. And you know

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Speaker 1: it sounds like you're doing a solid job saving for

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Speaker 1: retirement already. Eric, you're not like on a course for

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Speaker 1: fire in ten years or something like that. But who cares,

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Speaker 1: Like that's that's not our jam anyway. On this podcast,

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Speaker 1: ideally you'd be socking money into a roth ira as well.

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Speaker 1: But yeah, when it comes down to it, money gear

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Speaker 1: number four comes before money gear number five for a reason.

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Speaker 1: And six thousand bucks is what you mentioned you had

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Speaker 1: in your emergency fund. I think that's probably not quite

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Speaker 1: enough to have the comfort you need.

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Speaker 2: Right.

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Speaker 1: It's agreed. It's a great start, like you're rocking it,

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Speaker 1: you're on your way. But I think that's the next

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Speaker 1: best thing is to increase how much you have in

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Speaker 1: your emergency fund. Your renters. You don't have kids, I

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Speaker 1: don't think, which means three months worth of expenses should

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Speaker 1: be sufficient, right. Repairs aren't on you and you don't

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Speaker 1: have like a I don't know if I've mentioned this

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Speaker 1: on the show, Matt the an emergency visit through the

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Speaker 1: Orthodonis that we had to make like last year with

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Speaker 1: our daughter. She was like had her hands on the skateboard,

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Speaker 1: and then we talked about the face plant and like

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Speaker 1: those kinds of emergency business and costs a lot of

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Speaker 1: money when you don't have kids. Like your emergency fund

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Speaker 1: I think could be maybe a little bit little yeah, right,

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Speaker 1: little leader, But I don't know about three k leen

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Speaker 1: I'm sorry, six k leen, yeah exactly, but three months

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Speaker 1: lean probably right? That should that should be sufficient. So

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Speaker 1: we'd love to see you increase that buffer before endeavoring

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Speaker 1: to sophomore money away for your long term future. With

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Speaker 1: this higher cash flow, my guess is it's just not

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Speaker 1: going to take too long for you to hit that goal.

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Speaker 2: Totally agree.

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Speaker 1: You already got six k. How long is it going

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Speaker 1: to take to get three months worth of full three?

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Speaker 2: And honestly, I don't think he needs I'm guessing him

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Speaker 2: and his partner that they don't need to have a

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Speaker 2: ton more because he is obviously very comfortable with the

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Speaker 2: increased risk that he's taking on just with the six

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Speaker 2: thousand dollars. He can handle it emotionally. I just want

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Speaker 2: to make sure that he can handle it financially, yeah, right, Like,

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Speaker 2: because there are certain things that come along, right, like

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Speaker 2: what is the deductible on your car insurance what does

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Speaker 2: it look like?

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Speaker 1: Or health insurance?

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Speaker 2: Yeah, and like you've got a full time job, like

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Speaker 2: you work year round, but maybe that could change. Like,

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Speaker 2: there are just so many different factors there. I want

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Speaker 2: you to be a little more. I would love for

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Speaker 2: you to be more bulletproof, more robust, more durable, to

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Speaker 2: be able to handle whatever it is that life throws

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Speaker 2: at you. Then after that, yes, then the roth ira

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Speaker 2: is likely going to be your next best bet. Putting

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Speaker 2: money into that four fifty seven that's not bad. But

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Speaker 2: the roth iray is the better choice. And that is

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Speaker 2: for a few reasons. One is that the fees and

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Speaker 2: this is of course, if you opt for a low

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Speaker 2: cost brokerage, the fees can be incredibly low to either

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Speaker 2: non existence, and that's not always the case when it

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Speaker 2: comes to four to fifty sevens. But it's also because

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Speaker 2: of the different tax status. So you'd start to be

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Speaker 2: able to accrue money in a post tax account in

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Speaker 2: addition to your pre tax one the four to one AU.

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Speaker 2: So yeah, the ability to have those two tax buckets

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Speaker 2: to be able to draw from not knowing exactly where

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Speaker 2: things are going to be twenty thirty forty years from now,

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Speaker 2: is a good position to put yourself in. And there's

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Speaker 2: just a whole lot of flexibility with a ROTH that

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Speaker 2: we love, not only from a tax standpoint, but also

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Speaker 2: the ability to pull some of those contributions if you

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Speaker 2: find yourself in a weird situation down the road.

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Speaker 1: Yeah, so what you're getting at, Matt, like, let's talk

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Speaker 1: about the flexibility the ROTH for just a second. One

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Speaker 1: is that, Yeah, those contributions can be withdrawn at any

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Speaker 1: point in time, which makes the WROTH a perfect like

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Speaker 1: back up to the emergency fund. So let's say you

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Speaker 1: have three months worth of liquid savings in a highlight

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Speaker 1: savings account, but you're able to max out your WRATH

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Speaker 1: for many years in a row over time, like you can.

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Speaker 1: Kind of the goal is to never pull money out

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Speaker 1: of the WROTH until you're reaching retirement, so you need

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Speaker 1: the money, but it's nice to think of that as

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Speaker 1: like a an emergency emergency fund back up to the backup.

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Speaker 2: Yeah, one additional layer of redundancy.

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Speaker 1: That's right, that's right, and so it doesn't hurt.

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Speaker 2: Let's just say that right as opposed you can hit

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Speaker 2: with a ten percent penalty. Uh yeah, with the tax defferred.

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Speaker 1: That is one of the best teachers and in some ways,

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Speaker 1: like I don't love that it exists. Like there was

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Speaker 1: one time, or very early on in my money journey,

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Speaker 1: I took money, some of those contributions out of my

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Speaker 1: wroth I right, And looking back, I was like I

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Speaker 1: had the same he's on hand. I just like didn't

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Speaker 1: want to want to deplete your savings. I didn't want that.

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Speaker 2: Yeah, or maybe it's been been a long time, so

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Speaker 2: it was.

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Speaker 1: It was just one of those things.

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Speaker 2: Where I should intentially forget things that way you can

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Speaker 2: we can reshare them. Yeah, it's like, no way that

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Speaker 2: happened to you.

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Speaker 1: It's just automatically happening. Bro, we're getting that old we

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Speaker 1: forget things called decline.

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Speaker 2: That's right.

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Speaker 1: But I remember doing that, and I was like, it's

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Speaker 1: probably not that big of a deal. And then you

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Speaker 1: look at what's happened with the market. If I took

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Speaker 1: three thousand dollars out of my roth ira, well would

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Speaker 1: that be worth today? And then what's what's that going

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Speaker 1: to be worth? You know in the next fifteen or

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Speaker 1: twenty years when I'm ready to tap that money. It's

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Speaker 1: it actually was a bigger deal than I thought it

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Speaker 1: was at the time. So yeah, we prefer you, of course,

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Speaker 1: to never take money out of the roth Ira until

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Speaker 1: you're closer to retirement age, but the fact that you

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Speaker 1: can access some of the money is a benefit. So yeah,

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Speaker 1: I think patrir he funded three months and then go

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Speaker 1: roth Ira and then you're kind of sort of by

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Speaker 1: proxy adding to the months that you have on hand

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Speaker 1: for your emergency fund at the same time.

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Speaker 2: Yeah, Also, Eric mentioned getting married, and here's something that's

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Speaker 2: really interesting to me. He essentially put getting married in

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Speaker 2: money gear seven, sort of like this sort of far

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Speaker 2: off wouldn't it be nice kind of goal? And I

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Speaker 2: totally disagree with that approach. To me, getting married is

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Speaker 2: not a money year seven kind of goal, agreed. It's

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Speaker 2: this thing that oh, like why wait, Like, if you

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Speaker 2: know that y'all want to get married, this is okay.

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Speaker 2: So there's a big distinction between getting married and throwing

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Speaker 2: a big, massive wedding, right, and so if what you're

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Speaker 2: talking about here is throwing a big massive wedding, okay,

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Speaker 2: maybe there's a way where both of these of these

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Speaker 2: things can kind of simultaneously coexist, right where y'all go

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Speaker 2: get married, so you're legally married, you're married filing joinally right,

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Speaker 2: like you're doing all the things, but maybe it looks

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Speaker 2: like a bigger party a year or two from now

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Speaker 2: because you want to be able to save up the

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Speaker 2: money for that. I totally understand that. But if you

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Speaker 2: are actually postponing actually getting married because you feel like

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Speaker 2: you need to save up a certain amount of money,

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Speaker 2: I think that's not something I would Honestly, I don't

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Speaker 2: think I wouldn't postpone on that. There's some things that

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Speaker 2: I think are more important than feeling like you're going

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Speaker 2: to be perfectly ready, because guess what, depending on the

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Speaker 2: individual or the couple, that could be perpetually off in

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Speaker 2: the future thinking oh a little bit more, oh, we're

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Speaker 2: not quite ready. Same thing with kids. You never feel

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Speaker 2: completely ready to have kids. It just kind of happens,

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Speaker 2: and you're like, Okay, I guess we're doing it. Doesn't

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Speaker 2: just it does just but it does kind of feel

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Speaker 2: like that's it's like magic. Whoa. But uh there's the

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Speaker 2: difference though. I think some folks are going to hear

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Speaker 2: that and like, Okay, well you can take that same

403
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Speaker 2: logic and apply it to I really want to go

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Speaker 2: on this vacation. This is the kind of life. I

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Speaker 2: want to I want to lead, But like, what is

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Speaker 2: when I think about getting married and when I think

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Speaker 2: about kids, what is at the core of those aspects

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Speaker 2: of life that somebody might call a luxury, right, like

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Speaker 2: a many year seven kind of goal. But that's relationship,

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Speaker 2: and not only a relationship, but like your most core,

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Speaker 2: the closest relationship you could ever potentially have with another

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Speaker 2: human being, that being your spouse, but then also your kids,

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Speaker 2: and that is I dare say, the most important thing

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Speaker 2: and rises above everything else. So in my mind, it

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Speaker 2: doesn't it doesn't come anywhere near as being the same

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Speaker 2: as a house or a car, or a vacation or

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Speaker 2: all of these other things. Not a consumer good.

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Speaker 1: It's a commitment, right, And yes, yeah it's and it's

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Speaker 1: like a day a celebration to mark that commitment. So

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Speaker 1: the actual wedding, Yeah, so I think it's worth talking about, well,

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Speaker 1: how much do we set aside for that and how

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Speaker 1: important of a financial plant it out you need to,

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Speaker 1: But I think you're right to highlight the importance and

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Speaker 1: to say that, yeah, this is not a money gear

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Speaker 1: number seven thing, a boat or whatever, like all the

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Speaker 1: other things you're mentioning for sure, but like or a big,

427
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Speaker 1: fancy destination wedding, Yeah, that feels more.

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Speaker 2: Like a lifestyle choice as opposed to getting married.

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Speaker 1: So I think it's a good idea to come hitched with,

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Speaker 1: like an ideal budget and timeline, and it wants you

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Speaker 1: to consider what you want for the big day and

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Speaker 1: then the trade offs that you have to make in

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Speaker 1: order to get there. That process, it might make you

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Speaker 1: dial back your your expectations just a little bit. You

435
00:18:34,200 --> 00:18:36,480
Speaker 1: might I don't cancel the band in favor of a

436
00:18:36,560 --> 00:18:39,119
Speaker 1: DJ or something like that. Or you might say, you

437
00:18:39,160 --> 00:18:41,000
Speaker 1: know what, we really want to accomplish these We want

438
00:18:41,000 --> 00:18:42,760
Speaker 1: to get married a year from now, but we also

439
00:18:42,760 --> 00:18:45,280
Speaker 1: want accomplish these other things. Maybe you shrink the invite

440
00:18:45,320 --> 00:18:48,359
Speaker 1: list a bit in order to have a slightly smaller

441
00:18:48,359 --> 00:18:50,280
Speaker 1: wedding at a smaller venue that's going to cost a

442
00:18:50,359 --> 00:18:52,800
Speaker 1: lot less, or you out for a weekday wedding. Those

443
00:18:52,800 --> 00:18:54,280
Speaker 1: are not ridiculous things.

444
00:18:54,320 --> 00:18:55,840
Speaker 2: It's not a big to do. Yeah, it's not a big,

445
00:18:55,880 --> 00:18:59,080
Speaker 2: massive wedding venue. It happens to be your favorite craft

446
00:18:59,080 --> 00:19:01,000
Speaker 2: beer bar that starts really good food and they got

447
00:19:01,000 --> 00:19:02,720
Speaker 2: the private room in the back, Like there's a spot

448
00:19:02,760 --> 00:19:04,600
Speaker 2: that we go to all the time Joel here in town,

449
00:19:05,000 --> 00:19:07,000
Speaker 2: and people run off that back room, and it's like,

450
00:19:07,200 --> 00:19:09,080
Speaker 2: is it the I don't know, is it like the

451
00:19:09,119 --> 00:19:11,320
Speaker 2: Hollywood what we're used to seeing, you know, in the

452
00:19:11,400 --> 00:19:13,359
Speaker 2: nineties and rom coms, Like as far as what a

453
00:19:13,400 --> 00:19:15,359
Speaker 2: wedding is it hitched, you know, like at the end

454
00:19:15,400 --> 00:19:17,920
Speaker 2: of Hitch and there's like this one with uh, what's

455
00:19:17,920 --> 00:19:20,960
Speaker 2: his name was that smith? Yeah, I just remember this

456
00:19:21,040 --> 00:19:23,880
Speaker 2: like massive dance sequence that sort of thing. I think,

457
00:19:23,920 --> 00:19:25,879
Speaker 2: you know, like, there are these images that people have

458
00:19:26,480 --> 00:19:28,560
Speaker 2: of what a wedding should look like, and in some cases,

459
00:19:28,600 --> 00:19:31,040
Speaker 2: if you have the means to pull that off, you

460
00:19:31,560 --> 00:19:34,320
Speaker 2: probably also your family would help you out with something

461
00:19:34,359 --> 00:19:36,879
Speaker 2: like that, then go for it. But just know that

462
00:19:36,960 --> 00:19:39,680
Speaker 2: it doesn't necessarily have to be like this big, lavish,

463
00:19:39,880 --> 00:19:42,280
Speaker 2: you know, big fat Greek wedding kind of style event.

464
00:19:42,640 --> 00:19:44,919
Speaker 1: I think that's true, and I think it's also you

465
00:19:45,000 --> 00:19:49,200
Speaker 1: tend to and I think there's some good in this sacrifice, extraordinary,

466
00:19:49,480 --> 00:19:52,760
Speaker 1: extraordinarily you go above and beyond in order to make

467
00:19:52,800 --> 00:19:56,680
Speaker 1: this thing happen, right, Like I remember selling my beloved

468
00:19:56,720 --> 00:19:59,000
Speaker 1: scooter that got me around town, Matt, because I just

469
00:19:59,080 --> 00:20:01,880
Speaker 1: didn't need called him Colonel Mustard, it was yellow and

470
00:20:02,359 --> 00:20:04,639
Speaker 1: I didn't need that anymore. What I prefer to do

471
00:20:04,760 --> 00:20:06,600
Speaker 1: was to buy an engagement ring for my wife. And

472
00:20:06,600 --> 00:20:09,080
Speaker 1: I remember that trade off of gosh, I'm gonna miss

473
00:20:09,119 --> 00:20:11,480
Speaker 1: this thing, but I'm getting something so much better. Yeah, boy,

474
00:20:11,600 --> 00:20:14,000
Speaker 1: And so that's maybe take that mentality too, is or

475
00:20:14,040 --> 00:20:15,440
Speaker 1: something you can kind of get rid of to help

476
00:20:15,440 --> 00:20:17,760
Speaker 1: fund this, or a side hustle you can pick up

477
00:20:18,240 --> 00:20:21,399
Speaker 1: so that you're not completely bagging your other financial goals

478
00:20:21,160 --> 00:20:25,800
Speaker 1: for the time being to reach this marriage goal. But yeah,

479
00:20:26,000 --> 00:20:27,760
Speaker 1: marriaging money get number seven either.

480
00:20:27,840 --> 00:20:30,520
Speaker 2: Yeah, I agreed. Also, how have we never talked about that?

481
00:20:30,520 --> 00:20:32,600
Speaker 2: I'll let you finish your story, Colonel Mustard. Well, I

482
00:20:32,600 --> 00:20:34,159
Speaker 2: think I've heard you talk about the scooter before, but

483
00:20:34,200 --> 00:20:36,160
Speaker 2: you selling it for the engagement ring because that soul

484
00:20:36,280 --> 00:20:40,200
Speaker 2: mirrors my Honda. I had a like mid seventies Honda cbe.

485
00:20:40,960 --> 00:20:43,000
Speaker 1: M a much cooler ride.

486
00:20:43,520 --> 00:20:49,000
Speaker 2: That just blains a lot about both of us. Yeah. Also,

487
00:20:49,080 --> 00:20:52,480
Speaker 2: two wheels got us around, but in different styles perhaps,

488
00:20:53,640 --> 00:20:54,000
Speaker 2: but that.

489
00:20:53,920 --> 00:20:55,439
Speaker 1: Was to I didn't really have anyone ride on the

490
00:20:55,480 --> 00:20:58,000
Speaker 1: back because already, like forty was its top speed.

491
00:20:58,160 --> 00:20:59,720
Speaker 2: So oh no, this thing was what was it? A

492
00:20:59,760 --> 00:21:04,000
Speaker 2: five CB five fifty thing was great, but I sold

493
00:21:04,040 --> 00:21:05,520
Speaker 2: it because I was like, you know, what time to

494
00:21:05,560 --> 00:21:08,560
Speaker 2: start being a bit more responsible. I don't. It's gonna

495
00:21:08,600 --> 00:21:10,000
Speaker 2: take me a little bit too long to save up

496
00:21:10,040 --> 00:21:11,640
Speaker 2: the cash to be able to buy this engagement ring

497
00:21:11,640 --> 00:21:13,400
Speaker 2: that I wanted to. So, yeah, those are, like you said,

498
00:21:13,440 --> 00:21:15,400
Speaker 2: those are the kind of sacrifices you make in order

499
00:21:15,480 --> 00:21:18,280
Speaker 2: to prioritize something that has quickly become a more important goal.

500
00:21:18,480 --> 00:21:20,840
Speaker 1: Less but not least, take any bigger lump sumps. You

501
00:21:20,920 --> 00:21:23,480
Speaker 1: get tax refunds, like that's that's the season where and

502
00:21:23,520 --> 00:21:25,800
Speaker 1: if you got a nice tax refund, the average Americans

503
00:21:25,840 --> 00:21:28,960
Speaker 1: getting much more substantial one than last year, put it

504
00:21:28,960 --> 00:21:31,600
Speaker 1: directly into the wedding fund. Anytime something like that happens,

505
00:21:31,640 --> 00:21:35,399
Speaker 1: anytime you pay off a debt and you have extra

506
00:21:35,480 --> 00:21:38,600
Speaker 1: cash on hand above and beyond what you're saying using

507
00:21:38,640 --> 00:21:40,960
Speaker 1: to save and invest for other goals, put it in

508
00:21:40,960 --> 00:21:42,959
Speaker 1: the wedding fund. And once that's topped all the way off,

509
00:21:43,000 --> 00:21:44,720
Speaker 1: you have all the money saved, you can go back

510
00:21:44,760 --> 00:21:48,240
Speaker 1: to like saving and investing even more intentionally. But yeah,

511
00:21:48,280 --> 00:21:49,720
Speaker 1: I just wouldn't. I wouldn't put the wedding on the

512
00:21:49,720 --> 00:21:51,760
Speaker 1: back burner man that we.

513
00:21:51,840 --> 00:21:53,840
Speaker 2: Got our advice. Yeah, that could happen. Totally agree.

514
00:21:53,960 --> 00:21:56,000
Speaker 1: Some people might say that now ye all right, Joel, we.

515
00:21:56,040 --> 00:21:57,639
Speaker 2: Got more to get to. We're gonna hear from a

516
00:21:57,640 --> 00:22:01,800
Speaker 2: listener who is plunning on banking on some Social Security

517
00:22:01,800 --> 00:22:06,120
Speaker 2: survivor benefits, but she actually happens to be a bit younger,

518
00:22:06,160 --> 00:22:08,080
Speaker 2: so we'll get to her question. Plus more, we're gonna

519
00:22:08,080 --> 00:22:11,199
Speaker 2: talk about the best cars to get when you have kids,

520
00:22:11,359 --> 00:22:12,760
Speaker 2: that and more. Right after this.

521
00:22:20,640 --> 00:22:23,199
Speaker 1: We're back. We got more of your money questions to

522
00:22:23,200 --> 00:22:26,560
Speaker 1: get to. You love taking your questions, and Matt, let's

523
00:22:26,560 --> 00:22:29,600
Speaker 1: get to one specifically about I don't know do you

524
00:22:29,640 --> 00:22:31,720
Speaker 1: need insurance when Social Security exists?

525
00:22:32,119 --> 00:22:36,080
Speaker 3: Hi, Matt, Joel, this is Brianna from Chicago. I just

526
00:22:36,119 --> 00:22:38,120
Speaker 3: had a question. I know you guys talk a lot

527
00:22:38,200 --> 00:22:43,160
Speaker 3: about term life insurance, but as far as I understand,

528
00:22:43,200 --> 00:22:47,760
Speaker 3: there's also a spousal death benefit from the Social Security

529
00:22:48,280 --> 00:22:50,280
Speaker 3: and I don't think you guys have ever mentioned that.

530
00:22:50,480 --> 00:22:52,919
Speaker 3: And you know you get I think you get a

531
00:22:52,960 --> 00:22:58,639
Speaker 3: monthly stipend basically if your spouse were to pass away

532
00:22:58,880 --> 00:23:02,600
Speaker 3: until your children in are to a certain age. I

533
00:23:02,680 --> 00:23:05,480
Speaker 3: just wanted to see if I was missing something because

534
00:23:07,119 --> 00:23:10,720
Speaker 3: with that and then also savings, I feel like I

535
00:23:10,720 --> 00:23:12,960
Speaker 3: wouldn't need term life insurance.

536
00:23:13,359 --> 00:23:18,400
Speaker 2: Okay, thanks, bye, All right, Brianna, great question, and I

537
00:23:18,480 --> 00:23:20,760
Speaker 2: want to first kick things off with the fact that

538
00:23:20,800 --> 00:23:24,120
Speaker 2: you've got it. Sounds like substantial savings on hand. That's awesome,

539
00:23:24,600 --> 00:23:26,959
Speaker 2: right in case something were to happen to you know,

540
00:23:27,000 --> 00:23:28,720
Speaker 2: not only in day to day living, but in case

541
00:23:29,080 --> 00:23:31,800
Speaker 2: something might happen to your partner or your spouse. It's

542
00:23:31,800 --> 00:23:33,480
Speaker 2: a great place to be in first of all. But

543
00:23:33,600 --> 00:23:36,680
Speaker 2: still we're talking about here is being able to replace

544
00:23:37,240 --> 00:23:41,280
Speaker 2: your significant other's income, and most folks don't have anywhere

545
00:23:41,280 --> 00:23:44,480
Speaker 2: close to enough on hand to meet the different obligations

546
00:23:44,480 --> 00:23:46,800
Speaker 2: that they would face, especially with children, which it sounds

547
00:23:46,840 --> 00:23:49,919
Speaker 2: like you have were your spouse to pass away. So

548
00:23:50,200 --> 00:23:51,960
Speaker 2: on one hand, I want to say, yes, this is

549
00:23:52,000 --> 00:23:54,520
Speaker 2: a real thing. Also, she called it a death benefit,

550
00:23:54,760 --> 00:23:55,359
Speaker 2: which sound a.

551
00:23:55,320 --> 00:23:56,800
Speaker 1: Little too like morose.

552
00:23:56,880 --> 00:24:00,200
Speaker 2: Yeah, yeah, which is I think Social Security actually calls

553
00:24:00,240 --> 00:24:03,520
Speaker 2: it a survivor's survivor's benefit. It's not like you're receiving

554
00:24:03,560 --> 00:24:07,840
Speaker 2: something good for someone to die. There's a branding issue

555
00:24:07,840 --> 00:24:10,360
Speaker 2: with depth benefit. You get it, yeah, you feel it, okay,

556
00:24:10,560 --> 00:24:13,040
Speaker 2: But it's a real thing, for sure, but at the

557
00:24:13,040 --> 00:24:15,200
Speaker 2: same time, I don't know, it's not quite enough.

558
00:24:15,280 --> 00:24:18,320
Speaker 1: Yeah, yeah, well and yeah, so we need to get

559
00:24:18,320 --> 00:24:21,960
Speaker 1: into the nitty gritty of the Social Security Survivor Benefit

560
00:24:22,000 --> 00:24:25,760
Speaker 1: and then also term life insurance, and so government benefits

561
00:24:25,960 --> 00:24:29,920
Speaker 1: like the Social Security Survivor Benefit would be helpful if

562
00:24:29,960 --> 00:24:32,040
Speaker 1: your spouse were to pass away and you were left

563
00:24:32,080 --> 00:24:35,160
Speaker 1: to raise your kids on your own. Likely still though,

564
00:24:35,200 --> 00:24:37,399
Speaker 1: it won't be enough, right, And that's because for a

565
00:24:37,440 --> 00:24:41,600
Speaker 1: moderate to high earner, SSA survivor benefits typically replace only

566
00:24:41,640 --> 00:24:44,680
Speaker 1: a portion of the income right that was coming in,

567
00:24:45,040 --> 00:24:49,120
Speaker 1: and so if you depended heavily on one income as

568
00:24:49,119 --> 00:24:52,480
Speaker 1: a family, those survivor benefits just aren't going to be enough,

569
00:24:52,680 --> 00:24:57,200
Speaker 1: or it will at least make your life uncomfortable enough

570
00:24:57,440 --> 00:25:00,719
Speaker 1: to where you will wish you had had other means,

571
00:25:01,200 --> 00:25:03,760
Speaker 1: likely a term life insurance policy. I guess depending on

572
00:25:03,800 --> 00:25:06,359
Speaker 1: how much money you have saved, you might be like, no,

573
00:25:06,440 --> 00:25:08,560
Speaker 1: I'm like, I'm not a scorel over here, and.

574
00:25:08,520 --> 00:25:11,560
Speaker 2: I gotta pile you guys don't understand how much I get. Yeah, okay,

575
00:25:11,600 --> 00:25:13,840
Speaker 2: if so, I mean, yeah, it's possible to self insured.

576
00:25:13,880 --> 00:25:15,399
Speaker 2: This is just one of those This is just one

577
00:25:15,440 --> 00:25:19,399
Speaker 2: of those things where most people can't and actually where

578
00:25:19,480 --> 00:25:21,760
Speaker 2: most people would be unwise to try to self insure

579
00:25:21,800 --> 00:25:24,560
Speaker 2: to that extent because it would mean other trade offs

580
00:25:24,640 --> 00:25:26,840
Speaker 2: in what they have to do with their finances. It

581
00:25:26,840 --> 00:25:29,640
Speaker 2: would mean having a lot more liquid savings on hand,

582
00:25:29,720 --> 00:25:32,520
Speaker 2: not being able to invest some of those dollars. And

583
00:25:32,680 --> 00:25:35,280
Speaker 2: if you didn't have a term life insurance policy and

584
00:25:35,320 --> 00:25:38,440
Speaker 2: you just planned on government benefits, it would mean, you know,

585
00:25:38,640 --> 00:25:41,120
Speaker 2: likely do you have to dial back on expenses because

586
00:25:41,119 --> 00:25:43,639
Speaker 2: of this reduced income. There's also, by the way, a

587
00:25:43,680 --> 00:25:48,080
Speaker 2: family maximum benefit and benefits for kids and once they

588
00:25:48,119 --> 00:25:51,760
Speaker 2: reach age eighteen typically, so there are just more stipulations

589
00:25:51,800 --> 00:25:54,119
Speaker 2: that can prevent you from living the life you've been

590
00:25:54,160 --> 00:25:58,439
Speaker 2: accustomed to if you're relying solely on government money to

591
00:25:58,480 --> 00:26:01,640
Speaker 2: come through. YEA, not worried about like the government not paying.

592
00:26:01,680 --> 00:26:03,760
Speaker 2: I'm just worried about that not being enough. Yeah, and

593
00:26:03,800 --> 00:26:07,040
Speaker 2: it could potentially change, you know, you start to to

594
00:26:07,119 --> 00:26:09,280
Speaker 2: dive into the social security question a little bit. But

595
00:26:09,320 --> 00:26:12,320
Speaker 2: I mean, honestly, it just talking about social security as

596
00:26:12,320 --> 00:26:14,680
Speaker 2: a replacement for retirement is actually a good parallel because

597
00:26:14,680 --> 00:26:17,120
Speaker 2: someone would say, well, dudes, why should I even say

598
00:26:17,119 --> 00:26:19,800
Speaker 2: for my own retirement. But if I've got social Security

599
00:26:19,840 --> 00:26:23,920
Speaker 2: to count on once I am of age, and it's like, well, yeah,

600
00:26:24,080 --> 00:26:27,639
Speaker 2: something will be there, but it's not gonna be great.

601
00:26:27,680 --> 00:26:29,840
Speaker 2: It's not gonna be quite enough, probably.

602
00:26:29,640 --> 00:26:32,080
Speaker 1: Not gonna help you live the life you want to live.

603
00:26:32,960 --> 00:26:34,680
Speaker 1: And again it might it might help you get by

604
00:26:34,720 --> 00:26:36,840
Speaker 1: with like a bare bun's existence exactly.

605
00:26:36,880 --> 00:26:39,800
Speaker 2: Yeah, So it comes down to how aggressively you've invested,

606
00:26:39,800 --> 00:26:41,680
Speaker 2: how much money you have on hand, because again, yeah,

607
00:26:41,680 --> 00:26:44,679
Speaker 2: there might be someone who is in a situation to

608
00:26:44,720 --> 00:26:46,680
Speaker 2: where you're like, okay, yeah, that's that's gonna be plenty.

609
00:26:46,760 --> 00:26:51,000
Speaker 2: But yeah, I think of the Social Security survivor benefits

610
00:26:51,040 --> 00:26:53,560
Speaker 2: as like a helpful floor, right, so it keeps you

611
00:26:53,560 --> 00:26:56,159
Speaker 2: from like getting below a certain point, and then the

612
00:26:56,240 --> 00:26:58,679
Speaker 2: term life policy as the benefit that allows you to

613
00:26:58,720 --> 00:27:02,200
Speaker 2: then maintain the flexibit that you've been able to achieve, right,

614
00:27:02,240 --> 00:27:04,560
Speaker 2: and so like it kind of continues, you're able to

615
00:27:04,560 --> 00:27:07,679
Speaker 2: continue on the same trajectory as opposed to do I

616
00:27:07,720 --> 00:27:09,640
Speaker 2: see the survivor benefits, it's sort of like, oh, you're

617
00:27:09,720 --> 00:27:11,639
Speaker 2: up and coming right, You're kind of up and to

618
00:27:11,760 --> 00:27:13,600
Speaker 2: the right, and then all of a sudden, this tragic

619
00:27:13,640 --> 00:27:16,480
Speaker 2: event happens, and all of a sudden at most you're

620
00:27:16,520 --> 00:27:19,120
Speaker 2: kind of like flatlining when it comes to your lifestyle

621
00:27:19,160 --> 00:27:20,720
Speaker 2: and some of the things that you're able to achieve

622
00:27:21,000 --> 00:27:24,920
Speaker 2: what you're hoping, even for your kids. In addition to that,

623
00:27:25,040 --> 00:27:27,480
Speaker 2: as far as the survivor benefits, there's no lump sum,

624
00:27:27,760 --> 00:27:30,840
Speaker 2: like if you would have had a term life payout. Actually,

625
00:27:30,880 --> 00:27:32,960
Speaker 2: I take that back. There is a there is an

626
00:27:33,119 --> 00:27:35,359
Speaker 2: alump sum payout, but it's like teeny tiny.

627
00:27:35,480 --> 00:27:38,240
Speaker 1: Yeah, it's not nearly as significant as.

628
00:27:38,160 --> 00:27:39,879
Speaker 2: Like you guys shouldn't even be mentioning it because you

629
00:27:39,880 --> 00:27:42,159
Speaker 2: don't need to be counting all that, Like it's two

630
00:27:42,240 --> 00:27:43,560
Speaker 2: hundred I want to say, it's like two hundred and

631
00:27:43,560 --> 00:27:46,159
Speaker 2: fifty bucks or something like that. It was. It's like

632
00:27:46,320 --> 00:27:48,800
Speaker 2: it's a historic call that alump sum. It's a historic relic.

633
00:27:49,119 --> 00:27:50,080
Speaker 2: Some of the history of you want to know some

634
00:27:50,200 --> 00:27:51,800
Speaker 2: of the history of it. Bring it was created back

635
00:27:51,840 --> 00:27:54,879
Speaker 2: in the thirties. Congress actually created this thing, and it

636
00:27:54,920 --> 00:27:56,840
Speaker 2: was to cover the cost of the funeral because back

637
00:27:56,840 --> 00:27:57,639
Speaker 2: then that's.

638
00:27:57,480 --> 00:27:59,720
Speaker 1: About how much a funeral cost. Yes, now we're talking

639
00:27:59,760 --> 00:28:02,439
Speaker 1: what like much a lot more, many thousands of dollars

640
00:28:03,119 --> 00:28:04,639
Speaker 1: on the cheap end to do a funeral.

641
00:28:04,720 --> 00:28:07,520
Speaker 2: Yeah, and then I think in the fifties it was

642
00:28:07,560 --> 00:28:10,160
Speaker 2: capped at two hundred and fifty bucks, and so it's

643
00:28:10,240 --> 00:28:12,960
Speaker 2: just like this thing that has still existed, but it's

644
00:28:13,000 --> 00:28:14,800
Speaker 2: nothing compared to what you would get with a term

645
00:28:14,840 --> 00:28:17,920
Speaker 2: life payout, because that is the kind of lump sum

646
00:28:17,920 --> 00:28:20,840
Speaker 2: that can help with everything. Right, Like, we're talking about

647
00:28:21,119 --> 00:28:23,239
Speaker 2: replacing lost income, we're talking about paying off debt, we're

648
00:28:23,240 --> 00:28:26,000
Speaker 2: talking like even a mortgage. Imagine being in a situation

649
00:28:26,280 --> 00:28:28,920
Speaker 2: where you straight up own your home free and clear

650
00:28:29,359 --> 00:28:31,159
Speaker 2: paying for college, right, Like, these are the dreams and

651
00:28:31,160 --> 00:28:33,560
Speaker 2: hopes you might have for your kids, or even just

652
00:28:33,600 --> 00:28:36,040
Speaker 2: giving you along in a front way that you don't

653
00:28:36,080 --> 00:28:39,520
Speaker 2: have to pile financial stress on top of the emotional

654
00:28:39,520 --> 00:28:41,600
Speaker 2: grief that you're already going through. It buys you a

655
00:28:41,600 --> 00:28:45,160
Speaker 2: little bit of time. And all of these things are

656
00:28:45,760 --> 00:28:47,760
Speaker 2: things that maybe right now in the moment, you're like, oh,

657
00:28:47,760 --> 00:28:49,760
Speaker 2: I can handle all of that, But I think it

658
00:28:49,760 --> 00:28:52,120
Speaker 2: would be different were the worst to happen.

659
00:28:51,880 --> 00:28:55,200
Speaker 1: And it's just hard to know how you're going to respond,

660
00:28:55,200 --> 00:28:57,800
Speaker 1: how it's going to impact you, and how you're like,

661
00:28:57,840 --> 00:28:59,120
Speaker 1: i'd probably be able to go back to work in

662
00:28:59,160 --> 00:29:03,280
Speaker 1: six months maybe, like but or I've got skills, i

663
00:29:03,280 --> 00:29:05,120
Speaker 1: could find a job, and well what if the economy's

664
00:29:05,160 --> 00:29:06,840
Speaker 1: not doing so hot then, so it's just all these

665
00:29:06,840 --> 00:29:09,400
Speaker 1: things outside of your control exactly. Yeah, and so yeah,

666
00:29:09,400 --> 00:29:12,800
Speaker 1: the term life insurance policy is worth having. And like

667
00:29:13,320 --> 00:29:15,160
Speaker 1: the crux of the matter here, too, mad is trying

668
00:29:15,160 --> 00:29:17,600
Speaker 1: to forego term life It just doesn't make a lot

669
00:29:17,640 --> 00:29:18,920
Speaker 1: of sense because it's so cheap.

670
00:29:19,320 --> 00:29:21,920
Speaker 2: Yeah, so it would be different if it cost you

671
00:29:21,960 --> 00:29:24,600
Speaker 2: an arm and a leg. But because it's especially for

672
00:29:24,600 --> 00:29:26,280
Speaker 2: someone who's got tons of savings on hand, it's like,

673
00:29:26,760 --> 00:29:30,080
Speaker 2: seems like you could probably easily afford this. Yes, I'm I'm.

674
00:29:29,960 --> 00:29:32,480
Speaker 1: Yeah, so I think it'd be cheap, not frugal, right

675
00:29:32,520 --> 00:29:35,880
Speaker 1: to avoid the term life insurance because you're like, I don't.

676
00:29:35,880 --> 00:29:37,840
Speaker 1: I don't think I need it because I think I've

677
00:29:38,080 --> 00:29:40,120
Speaker 1: done pretty well on my own. But this is just

678
00:29:40,520 --> 00:29:44,560
Speaker 1: this is a literal insurance policy right to prevent worst

679
00:29:44,560 --> 00:29:46,720
Speaker 1: case scenarios. So I'd rather find an extra fifty or

680
00:29:46,760 --> 00:29:48,880
Speaker 1: sixty bucks in my monthly budget to get a decent

681
00:29:48,960 --> 00:29:51,960
Speaker 1: term life policy in place. Then just hope that social

682
00:29:51,960 --> 00:29:55,960
Speaker 1: Security benefits and my own savings that I've been able

683
00:29:56,000 --> 00:29:59,840
Speaker 1: to stow away plus like a meager workplace life and

684
00:30:00,000 --> 00:30:01,840
Speaker 1: Suran's playing that she mentioned in her email at least

685
00:30:01,840 --> 00:30:04,160
Speaker 1: that she has would be enough to cover my family

686
00:30:04,200 --> 00:30:05,440
Speaker 1: in a worst case scenario.

687
00:30:05,480 --> 00:30:06,200
Speaker 2: It's it.

688
00:30:06,560 --> 00:30:09,360
Speaker 1: I don't you know. There's just so many unknowns about

689
00:30:09,400 --> 00:30:12,640
Speaker 1: what happens when you lose someone that's closest to you,

690
00:30:13,200 --> 00:30:15,360
Speaker 1: how everything happened, you know, what happens to your family.

691
00:30:15,440 --> 00:30:17,600
Speaker 1: You know, maybe you need to add onto your house

692
00:30:17,640 --> 00:30:20,200
Speaker 1: because one of your friends or a loved one is

693
00:30:20,200 --> 00:30:21,400
Speaker 1: going to come live with you. I mean, there's just

694
00:30:21,480 --> 00:30:23,960
Speaker 1: all of these there's all of these unknowns. What's it

695
00:30:24,000 --> 00:30:26,719
Speaker 1: going to make take to make your life work and

696
00:30:26,760 --> 00:30:29,200
Speaker 1: tick and be good as you move forward from a loss.

697
00:30:29,720 --> 00:30:31,960
Speaker 1: I just think a term life it's like it's kind

698
00:30:31,960 --> 00:30:36,520
Speaker 1: of drops in the bucket essentially. It's such a smare buy. Yeah,

699
00:30:37,360 --> 00:30:39,800
Speaker 1: it's one of the necessary buys, one of the only

700
00:30:39,840 --> 00:30:42,600
Speaker 1: necessary buyes for most people. Not for everyone. We can

701
00:30:42,600 --> 00:30:45,000
Speaker 1: talk about who term life doesn't make sense for, but

702
00:30:45,240 --> 00:30:46,240
Speaker 1: especially for this family.

703
00:30:46,320 --> 00:30:47,880
Speaker 2: Yeah, if there's flks who are counting on your income,

704
00:30:47,960 --> 00:30:50,880
Speaker 2: you need term life insurance. But I do like where

705
00:30:50,880 --> 00:30:53,040
Speaker 2: her head's at, which is she's thinking about like well,

706
00:30:53,080 --> 00:30:58,040
Speaker 2: I can self ensure, and that is ultimately the goal eventually, right, like,

707
00:30:58,080 --> 00:31:00,400
Speaker 2: that is the goal as your kids grow up, as

708
00:31:00,400 --> 00:31:03,240
Speaker 2: they leave the nest, as you grow your net worth,

709
00:31:03,600 --> 00:31:06,120
Speaker 2: as your investments increased, Like, you're not gonna need term

710
00:31:06,240 --> 00:31:10,800
Speaker 2: life insurance much beyond She's already got kids, so like

711
00:31:10,840 --> 00:31:13,160
Speaker 2: you probably only need like a ten fifteen, like maybe

712
00:31:13,160 --> 00:31:17,040
Speaker 2: tops twenty year twenty year term beyond that, and you've

713
00:31:17,040 --> 00:31:21,160
Speaker 2: got and once they're less dependent on your income, the

714
00:31:21,280 --> 00:31:23,640
Speaker 2: ability for you to self insured to yeah, to count

715
00:31:23,680 --> 00:31:26,200
Speaker 2: with some of those investments. That's gonna I'm guessing that's

716
00:31:26,200 --> 00:31:28,360
Speaker 2: certainly going to appeal to you. But right now, during

717
00:31:28,560 --> 00:31:30,560
Speaker 2: I'm going to guess, what are the most expensive and

718
00:31:30,760 --> 00:31:34,120
Speaker 2: labor intensive years. Having that solid term policy is just

719
00:31:34,160 --> 00:31:37,440
Speaker 2: going to provide a you know, some nice peace of mind,

720
00:31:37,840 --> 00:31:40,440
Speaker 2: which I don't like to say, but in this case,

721
00:31:40,680 --> 00:31:43,680
Speaker 2: term life peace of mind gives you that shield, that

722
00:31:43,840 --> 00:31:46,840
Speaker 2: meaningful financial backstop. Man so worth all the money that

723
00:31:47,040 --> 00:31:48,800
Speaker 2: it would cost you, I which isn't very much.

724
00:31:48,920 --> 00:31:51,920
Speaker 1: I was actually talking to an older fellow recently, Matt,

725
00:31:51,920 --> 00:31:54,800
Speaker 1: who's done well and he's invested, he's got a great

726
00:31:54,840 --> 00:31:57,600
Speaker 1: nest egg and he consulted it in an advisor to

727
00:31:57,640 --> 00:32:00,560
Speaker 1: ask about whether or not he could ditch certain insurance policies,

728
00:32:00,960 --> 00:32:02,640
Speaker 1: and his kids have flown the coop. His kids are

729
00:32:02,680 --> 00:32:04,920
Speaker 1: like full fledged adults making their income. They don't live

730
00:32:04,960 --> 00:32:08,360
Speaker 1: at home, and so you just drop it. He dropped them, Yeah,

731
00:32:08,400 --> 00:32:09,720
Speaker 1: he dropped me. He doesn't need him anymore.

732
00:32:09,720 --> 00:32:11,840
Speaker 2: Stop paying. Yeah, that's literally what you can do.

733
00:32:11,880 --> 00:32:14,480
Speaker 1: It's his insurance policies were a lot more expensive, I think,

734
00:32:14,520 --> 00:32:16,760
Speaker 1: but a term like policy might be like, I'm just

735
00:32:16,800 --> 00:32:19,560
Speaker 1: going to keep it around anyway, because why not keep

736
00:32:19,600 --> 00:32:21,800
Speaker 1: it around for two more years when, yeah, the premium

737
00:32:21,840 --> 00:32:22,160
Speaker 1: is so low.

738
00:32:22,240 --> 00:32:25,160
Speaker 2: Yeah, if you've got a locked in stable level term policy,

739
00:32:25,240 --> 00:32:27,640
Speaker 2: it doesn't make sense because that's the other private If

740
00:32:27,640 --> 00:32:30,800
Speaker 2: you're like, well, kids are gone, We've got enough money

741
00:32:30,840 --> 00:32:33,120
Speaker 2: on hand, why should I be paying into this thing

742
00:32:33,120 --> 00:32:36,000
Speaker 2: for another three years. Well, chances are when you got

743
00:32:36,040 --> 00:32:40,280
Speaker 2: that quote for that plan twenty seven years ago, it's

744
00:32:40,320 --> 00:32:43,120
Speaker 2: probably really affordable, so paying virtually nothing, and you would

745
00:32:43,120 --> 00:32:45,520
Speaker 2: feel like, I'm sure you'd probably feel like a dummy

746
00:32:45,840 --> 00:32:48,280
Speaker 2: if you were to stop paying on that have coverage

747
00:32:48,360 --> 00:32:52,280
Speaker 2: laps and then your partner three months later after you

748
00:32:52,280 --> 00:32:54,080
Speaker 2: you know, choke on a drumstick or something like that.

749
00:32:54,160 --> 00:32:57,240
Speaker 2: It's just like, what a way to go. They're just

750
00:32:57,280 --> 00:32:59,640
Speaker 2: like waving their their fist at better.

751
00:32:59,520 --> 00:33:02,520
Speaker 1: Than getting cursing you in an accident on my you know,

752
00:33:02,680 --> 00:33:03,960
Speaker 1: fifty cluster.

753
00:33:04,240 --> 00:33:05,840
Speaker 2: Yeah, yeah, I think I would have been the one

754
00:33:05,880 --> 00:33:07,080
Speaker 2: who would have been in more of.

755
00:33:07,040 --> 00:33:09,840
Speaker 1: A world of birth though, that's true. Oh and if

756
00:33:09,880 --> 00:33:11,800
Speaker 1: you're going to shop by the way policy genius. If

757
00:33:11,800 --> 00:33:13,960
Speaker 1: you're a Costco member, Costco has a great place to shop.

758
00:33:14,240 --> 00:33:16,480
Speaker 1: But yeah, find a good deal on that term life

759
00:33:16,480 --> 00:33:18,080
Speaker 1: insurance and it's worth it.

760
00:33:18,120 --> 00:33:20,320
Speaker 2: Did you ever wreck that thing, like crash it or

761
00:33:20,360 --> 00:33:22,200
Speaker 2: did you ever have to lay it down?

762
00:33:22,240 --> 00:33:22,400
Speaker 4: Out?

763
00:33:22,440 --> 00:33:23,640
Speaker 2: I don't really have to lay down.

764
00:33:24,960 --> 00:33:27,440
Speaker 1: You're not really in high dangerous situations in that thing.

765
00:33:27,800 --> 00:33:30,160
Speaker 2: Yeah, that's something I was able to luckily avoid.

766
00:33:30,360 --> 00:33:32,640
Speaker 1: All right, let's get to another question, Matt. This one

767
00:33:32,800 --> 00:33:35,480
Speaker 1: is about claiming dependence on your taxes.

768
00:33:36,200 --> 00:33:38,800
Speaker 5: Hi, Matt and Joel. This is Erica from the Salt

769
00:33:38,880 --> 00:33:45,480
Speaker 5: Lake City area. My question is about child's tax credits

770
00:33:45,960 --> 00:33:51,840
Speaker 5: for unmarried partners. So my partner and I welcomed our

771
00:33:51,880 --> 00:33:54,800
Speaker 5: second child in January twenty twenty five. So now we

772
00:33:54,840 --> 00:33:58,280
Speaker 5: have two kids and two adults. And so in the

773
00:33:58,320 --> 00:34:02,000
Speaker 5: past for our son, I was just I was claiming

774
00:34:02,080 --> 00:34:06,160
Speaker 5: him and I was getting a dependent care FSA through

775
00:34:06,200 --> 00:34:10,839
Speaker 5: my work for his childcare expenses for daycare. But now

776
00:34:10,840 --> 00:34:14,040
Speaker 5: that we have two kids, we're just wondering as we

777
00:34:14,200 --> 00:34:19,239
Speaker 5: enter filing twenty twenty five taxes, what is the best scenario.

778
00:34:20,640 --> 00:34:24,240
Speaker 5: Should I claim both kids? Should we each claim a child?

779
00:34:24,880 --> 00:34:28,399
Speaker 5: And if we each claimed a child, could he then

780
00:34:29,920 --> 00:34:34,560
Speaker 5: use the childcare tax credit for our daughter's costs because

781
00:34:34,600 --> 00:34:37,799
Speaker 5: he didn't have a dependent care FSA for her when

782
00:34:37,840 --> 00:34:42,719
Speaker 5: open enrollment happens this coming July or June for us,

783
00:34:43,840 --> 00:34:46,720
Speaker 5: could he get a dependent care FSA if he claims

784
00:34:46,719 --> 00:34:50,319
Speaker 5: our daughter in this tax year, could he get a

785
00:34:50,320 --> 00:34:53,000
Speaker 5: dependent care FSA for him for her? I have one

786
00:34:53,040 --> 00:34:54,359
Speaker 5: for him.

787
00:34:54,760 --> 00:34:55,600
Speaker 3: Would that be okay?

788
00:34:55,640 --> 00:34:58,359
Speaker 5: If we remain unmarried? So I know that there are

789
00:34:58,360 --> 00:35:02,240
Speaker 5: things to consider and love your guys insight about this situation.

790
00:35:02,480 --> 00:35:05,759
Speaker 1: Oh, Matt, which I think a lot to consider here, right,

791
00:35:05,800 --> 00:35:10,799
Speaker 1: There's many different potential impacts of what you choose to

792
00:35:10,800 --> 00:35:12,600
Speaker 1: do here, So this is a great question. Tax time

793
00:35:12,680 --> 00:35:14,880
Speaker 1: is here and the irs ismall.

794
00:35:14,880 --> 00:35:17,040
Speaker 2: I'm thinking about the tax child credit too, like that's

795
00:35:17,600 --> 00:35:19,480
Speaker 2: a huge factor as well, and she didn't even mention

796
00:35:19,560 --> 00:35:22,240
Speaker 2: that that's primarily focused on the dependent care.

797
00:35:22,239 --> 00:35:24,920
Speaker 1: Because that's what twenty two hundred dollars per child I

798
00:35:24,920 --> 00:35:27,840
Speaker 1: think right now. And only one person can claim the

799
00:35:27,960 --> 00:35:31,799
Speaker 1: child tax credit for a given individual child in a

800
00:35:31,840 --> 00:35:35,920
Speaker 1: specific year, and so that's one important thing to consider

801
00:35:36,040 --> 00:35:38,360
Speaker 1: is that if you claim them, you are getting a

802
00:35:38,400 --> 00:35:41,160
Speaker 1: tax benefit. If you claim both and your partner is

803
00:35:41,560 --> 00:35:44,560
Speaker 1: not getting that same benefit, but then there's a lot

804
00:35:44,920 --> 00:35:46,640
Speaker 1: in addition to control besides just that.

805
00:35:46,560 --> 00:35:48,520
Speaker 2: You've got the earned income tax credit as well. Right,

806
00:35:48,640 --> 00:35:51,400
Speaker 2: So let's let's imagine a scenario where you are, like,

807
00:35:51,440 --> 00:35:53,879
Speaker 2: you know what, let's keep this fair and square. We're

808
00:35:53,880 --> 00:35:56,920
Speaker 2: each going to claim one of the kids. And that's

809
00:35:56,960 --> 00:36:00,160
Speaker 2: a totally understandable way to proceed, but it may not

810
00:36:00,280 --> 00:36:03,600
Speaker 2: be as ideal from a financial standpoint. And this is

811
00:36:03,600 --> 00:36:06,840
Speaker 2: where the details come into play, because this could be

812
00:36:06,880 --> 00:36:09,880
Speaker 2: an instance where the lower earning partner actually has the

813
00:36:09,880 --> 00:36:13,840
Speaker 2: most potential tax benefits to gain from claiming not just

814
00:36:14,000 --> 00:36:17,080
Speaker 2: one kid, but both kids as dependents. So much of

815
00:36:17,080 --> 00:36:20,600
Speaker 2: it depends on how much that lower earner earns in

816
00:36:20,640 --> 00:36:23,399
Speaker 2: the specific specifics of their tax situation, but in some

817
00:36:23,440 --> 00:36:26,719
Speaker 2: situations it could allow that partner to qualify for the

818
00:36:26,800 --> 00:36:29,600
Speaker 2: earned income tax credit. If we're talking about less than

819
00:36:29,640 --> 00:36:33,880
Speaker 2: fifty eight thousand dollars, and just to get any exposure

820
00:36:33,920 --> 00:36:36,040
Speaker 2: to the earned income tax credit, and then we're talking

821
00:36:36,040 --> 00:36:40,120
Speaker 2: about maxing that credit at around seventy three hundred dollars.

822
00:36:40,160 --> 00:36:43,040
Speaker 2: If your AGI can get down to twenty, like around

823
00:36:43,040 --> 00:36:45,759
Speaker 2: twenty four thousand dollars, that being said, that's a huge ask,

824
00:36:46,080 --> 00:36:48,239
Speaker 2: may not be possible. But just to keep that into

825
00:36:48,280 --> 00:36:50,680
Speaker 2: like seventy three hundred dollars, that's even more money. Man.

826
00:36:50,719 --> 00:36:53,239
Speaker 2: And so when you're talking about who claims who, these

827
00:36:53,239 --> 00:36:55,400
Speaker 2: are the kind of sort of questions that you need

828
00:36:55,440 --> 00:36:59,800
Speaker 2: to be asking yourself. Not just looking at the dependent

829
00:36:59,840 --> 00:37:03,359
Speaker 2: Care Flexible Spending account where there's clearly something that's been

830
00:37:03,400 --> 00:37:05,520
Speaker 2: on your radar you'll have been able to take advantage

831
00:37:05,560 --> 00:37:07,319
Speaker 2: of the account in the past, but making sure that

832
00:37:07,360 --> 00:37:10,520
Speaker 2: you're looking at the full picture here in order to

833
00:37:10,840 --> 00:37:13,439
Speaker 2: maximize or I should say minimize how much you're paying

834
00:37:13,440 --> 00:37:13,920
Speaker 2: in tax yea.

835
00:37:13,920 --> 00:37:15,520
Speaker 1: And if one of you was able to get more

836
00:37:15,600 --> 00:37:17,680
Speaker 1: tax benefit, you could say, oh cool, well I'm gonna

837
00:37:17,680 --> 00:37:19,560
Speaker 1: throw this bone in your way for tax savings. And

838
00:37:19,600 --> 00:37:21,840
Speaker 1: then I want you to take care of this additional

839
00:37:21,840 --> 00:37:23,320
Speaker 1: bill or something like that. I'm sure that's something you

840
00:37:23,320 --> 00:37:24,800
Speaker 1: can work out on the back end, but it's just

841
00:37:24,920 --> 00:37:28,760
Speaker 1: nice to know where are the potential where the potential

842
00:37:28,880 --> 00:37:31,320
Speaker 1: tax savings lie, so that you can then kind of

843
00:37:31,400 --> 00:37:33,600
Speaker 1: make an informed decision. And if you couldn't come to

844
00:37:33,640 --> 00:37:35,320
Speaker 1: an agreement for some reason, or if both of you,

845
00:37:35,400 --> 00:37:39,000
Speaker 1: by the way, tried to claim both kids the irs

846
00:37:39,440 --> 00:37:41,880
Speaker 1: as like this tiebreaker rule that applies, so know that.

847
00:37:42,000 --> 00:37:45,440
Speaker 1: And then then the multiple multiple dependent care FSA that

848
00:37:45,560 --> 00:37:47,440
Speaker 1: you mentioned, that's another one of those quirks. It's well

849
00:37:47,480 --> 00:37:50,640
Speaker 1: worth considering, and it's another good reason, especially if neither

850
00:37:50,680 --> 00:37:52,840
Speaker 1: one of you has like a low enough agi to

851
00:37:53,000 --> 00:37:56,400
Speaker 1: qualify for that earned income tax credit, for each of

852
00:37:56,480 --> 00:38:00,120
Speaker 1: you to claim one child on your taxes, because this

853
00:38:00,400 --> 00:38:03,960
Speaker 1: will allow you each of you to employ your dependent

854
00:38:04,000 --> 00:38:09,080
Speaker 1: care Flexible Savings account and to avoid taxation on those dollars,

855
00:38:09,120 --> 00:38:12,759
Speaker 1: which is a not insignificant per exactly. I love the

856
00:38:12,800 --> 00:38:15,080
Speaker 1: idea both of you having access to that and avoiding

857
00:38:15,239 --> 00:38:17,160
Speaker 1: tax with those accounts. But the only way you can

858
00:38:17,200 --> 00:38:18,560
Speaker 1: do that is if each of you claim.

859
00:38:18,400 --> 00:38:20,400
Speaker 2: Each of you claims one And to get to your

860
00:38:20,560 --> 00:38:22,640
Speaker 2: part of the question, that you're asking about, well, can

861
00:38:22,719 --> 00:38:25,320
Speaker 2: we do that since we're not married, absolutely, Like, that

862
00:38:25,440 --> 00:38:28,439
Speaker 2: is totally something that you can do. Because we're talking

863
00:38:28,560 --> 00:38:31,759
Speaker 2: about savings of five thousand dollars, Like, that's the limit

864
00:38:31,840 --> 00:38:34,879
Speaker 2: per taxpayer, and it's per you as an individual, as

865
00:38:34,960 --> 00:38:38,080
Speaker 2: an individual taxpayer, it's not per household, right, So this

866
00:38:38,239 --> 00:38:40,719
Speaker 2: actually allows you to funnel more money than a married

867
00:38:40,760 --> 00:38:43,279
Speaker 2: couple would be able to into those accounts because when

868
00:38:43,280 --> 00:38:46,759
Speaker 2: you are married filing jointly, the IRS is looking at

869
00:38:46,840 --> 00:38:51,319
Speaker 2: that household at that point as one singular tax paying entity, right,

870
00:38:51,520 --> 00:38:54,399
Speaker 2: Like it's a joint return, so it's a singular five

871
00:38:54,440 --> 00:38:58,200
Speaker 2: thousand dollars if you both are filing separately five thousand

872
00:38:58,600 --> 00:39:01,279
Speaker 2: times too. So that's all awesome, right, the ability to

873
00:39:01,480 --> 00:39:04,040
Speaker 2: contribute that much to your workplace FSA in order to

874
00:39:04,080 --> 00:39:06,760
Speaker 2: read the tax benefits there. So if your childcare costs

875
00:39:06,880 --> 00:39:09,719
Speaker 2: are that high, it's totally the right move to make.

876
00:39:10,760 --> 00:39:13,160
Speaker 2: I will say, while we're talking about households, make sure

877
00:39:13,160 --> 00:39:16,040
Speaker 2: that you are making the most of the head of

878
00:39:16,120 --> 00:39:19,359
Speaker 2: household filing status, right, And it's typically the higher earner

879
00:39:19,760 --> 00:39:22,880
Speaker 2: is taking that filing status as well as the larger

880
00:39:22,880 --> 00:39:25,320
Speaker 2: standard deduction in order to bring your taxes down, so

881
00:39:26,400 --> 00:39:29,359
Speaker 2: something to keep in mind. But also, again, as you're

882
00:39:29,400 --> 00:39:32,440
Speaker 2: talking about the dependent Care Flexible Spending Account, if one

883
00:39:32,480 --> 00:39:34,680
Speaker 2: person were to claim both kids and get the full deduction,

884
00:39:34,800 --> 00:39:38,080
Speaker 2: well guess what that means again that the singular filer

885
00:39:38,239 --> 00:39:41,520
Speaker 2: is not able to contribute to the FSA as well.

886
00:39:41,640 --> 00:39:42,760
Speaker 2: So there's so many different factors.

887
00:39:42,800 --> 00:39:45,440
Speaker 1: You gotta agree on this and know enough about each

888
00:39:45,480 --> 00:39:48,800
Speaker 1: other's income financial situation to be able to make a

889
00:39:48,840 --> 00:39:49,560
Speaker 1: good decision here.

890
00:39:49,640 --> 00:39:51,560
Speaker 2: And it does sound like they're on the same page, right,

891
00:39:51,680 --> 00:39:54,800
Speaker 2: It's not like they're both polling in separate directions. But

892
00:39:54,880 --> 00:39:58,400
Speaker 2: it is made slightly more complicated given that y'all aren't married.

893
00:39:58,440 --> 00:40:00,200
Speaker 2: Because you know what this makes me think of is

894
00:40:00,360 --> 00:40:03,920
Speaker 2: when we talk about pre tax dollars for retirement or

895
00:40:04,040 --> 00:40:07,480
Speaker 2: post tax dollars, and what do we say. We're like, oh,

896
00:40:07,560 --> 00:40:10,840
Speaker 2: you want to minimize taxes over your lifetime, not necessarily

897
00:40:10,920 --> 00:40:13,920
Speaker 2: for that one singular year. Right, And in a similar way,

898
00:40:13,960 --> 00:40:17,960
Speaker 2: that's how I think about them as a household, as

899
00:40:18,000 --> 00:40:20,879
Speaker 2: a couple as a team versus them individually, Because yes,

900
00:40:20,920 --> 00:40:25,360
Speaker 2: you could maximize your tax benefit to you as an individual,

901
00:40:25,920 --> 00:40:28,520
Speaker 2: but what you need to be focusing on is your

902
00:40:28,600 --> 00:40:31,000
Speaker 2: entire household, you and your partner combined together, that's the

903
00:40:31,160 --> 00:40:33,920
Speaker 2: that's the equivalent of minimizing taxes over the lifetime as

904
00:40:33,960 --> 00:40:36,560
Speaker 2: opposed to just for a singular year. Yeah, that might

905
00:40:36,600 --> 00:40:40,480
Speaker 2: be a helpful heuristic to view this through Erica. But

906
00:40:40,800 --> 00:40:43,320
Speaker 2: hopefully that's helpful. I mean that there really are potential

907
00:40:43,360 --> 00:40:46,440
Speaker 2: if you work together and you agree that there's a

908
00:40:46,520 --> 00:40:50,280
Speaker 2: lot of there are ways to make a smart decision

909
00:40:50,360 --> 00:40:52,640
Speaker 2: that's going to save you quite a bit on taxes,

910
00:40:52,640 --> 00:40:55,799
Speaker 2: and you might actually do better right filing separately than

911
00:40:55,800 --> 00:40:58,719
Speaker 2: you would filing failing joining. This is definitely one of

912
00:40:58,760 --> 00:40:59,240
Speaker 2: those cases.

913
00:40:59,320 --> 00:41:01,480
Speaker 1: Yeah, we got more to get to you, Matt, including

914
00:41:02,680 --> 00:41:04,759
Speaker 1: when you need to upgrade a vehicle and what to

915
00:41:04,840 --> 00:41:07,520
Speaker 1: do with inheritance money. We'll get to those questions right

916
00:41:07,560 --> 00:41:17,759
Speaker 1: after this. All right, man, we are back from the break.

917
00:41:17,880 --> 00:41:20,279
Speaker 2: It's now time for the Facebook question of the week,

918
00:41:20,320 --> 00:41:23,279
Speaker 2: which is from Nina, which is, let's name one of

919
00:41:23,320 --> 00:41:26,800
Speaker 2: your cats, and you know, let's what's the name of

920
00:41:26,840 --> 00:41:29,879
Speaker 2: your other cat, Bertie Bertie that's right, and Bertie's well,

921
00:41:29,920 --> 00:41:31,839
Speaker 2: those that is Bertie Hyde. We did not name them,

922
00:41:31,880 --> 00:41:34,480
Speaker 2: by the way, that's they came pre named, so you

923
00:41:34,520 --> 00:41:36,600
Speaker 2: could have changed it, couln't you, I guess, but I

924
00:41:36,640 --> 00:41:37,520
Speaker 2: thought they gotten used to it?

925
00:41:37,680 --> 00:41:41,879
Speaker 1: So, uh did you ask the cats? No, but those

926
00:41:41,880 --> 00:41:43,759
Speaker 1: are not the names I would have named the cats.

927
00:41:43,800 --> 00:41:46,520
Speaker 2: What would you have chosen? Right out? Like you? Your

928
00:41:46,560 --> 00:41:49,040
Speaker 2: scooter was called Colonel Mustard, so I feel like you

929
00:41:49,080 --> 00:41:50,600
Speaker 2: would have named your I would have gone a little

930
00:41:50,640 --> 00:41:55,040
Speaker 2: off the cat. All right, Sorry, this is from Nina,

931
00:41:55,200 --> 00:41:58,200
Speaker 2: She wrote, curious what kind of vehicles those of you

932
00:41:58,320 --> 00:42:01,440
Speaker 2: with young kiddos are driving? Single me purchased an eight

933
00:42:01,520 --> 00:42:04,879
Speaker 2: year old, low mileage luxury vehicle four four years ago

934
00:42:05,520 --> 00:42:09,799
Speaker 2: and it's nearing end of life. Luckily, most of those

935
00:42:09,960 --> 00:42:13,320
Speaker 2: recent repairs have been covered through extended warranty. But counting

936
00:42:13,360 --> 00:42:16,719
Speaker 2: my blessings as the research my next step diligently helped

937
00:42:16,760 --> 00:42:19,840
Speaker 2: this new first time mama out with some ideas. Joel,

938
00:42:20,760 --> 00:42:21,960
Speaker 2: commence the pushback.

939
00:42:23,200 --> 00:42:25,280
Speaker 1: Got to start there, and we'll give you our thoughts

940
00:42:25,320 --> 00:42:29,640
Speaker 1: here on the specific question you asked but got us.

941
00:42:29,760 --> 00:42:31,839
Speaker 1: And I'm also excited for Nina, by the way, having

942
00:42:31,880 --> 00:42:32,160
Speaker 1: a baby.

943
00:42:32,200 --> 00:42:32,480
Speaker 2: Awesome.

944
00:42:32,520 --> 00:42:38,200
Speaker 1: Oh yeah, congratulations First before the pushback, congrats on new life. Yes,

945
00:42:38,920 --> 00:42:41,839
Speaker 1: but she said, a twelve year old car is near

946
00:42:41,880 --> 00:42:43,600
Speaker 1: the end of its life. She even like put some

947
00:42:43,640 --> 00:42:46,760
Speaker 1: money into it, made some repairs recently. My thing, I'm guessing,

948
00:42:47,080 --> 00:42:50,640
Speaker 1: I'm guessing that's not true and that and then that's

949
00:42:50,680 --> 00:42:53,600
Speaker 1: life good for another one hundred thousand miles. Basically, yeah,

950
00:42:53,640 --> 00:42:55,640
Speaker 1: based on the way she's talking about and if life

951
00:42:55,719 --> 00:42:56,960
Speaker 1: is in the eye of the beholder, and I think

952
00:42:57,000 --> 00:43:02,239
Speaker 1: this this car in particular, has a lot of room

953
00:43:02,360 --> 00:43:04,799
Speaker 1: left to run, right, you might be like, I don't

954
00:43:04,840 --> 00:43:07,279
Speaker 1: need the luxury car anymore. Depending on how luxury it is,

955
00:43:07,320 --> 00:43:10,880
Speaker 1: you might actually do better by trading by selling that

956
00:43:10,960 --> 00:43:13,360
Speaker 1: and buying something that's less expensive in room or I

957
00:43:13,400 --> 00:43:15,600
Speaker 1: don't know, but I just want to question that from

958
00:43:15,640 --> 00:43:17,960
Speaker 1: the outset, like is it time to get rid of

959
00:43:18,000 --> 00:43:18,239
Speaker 1: this car?

960
00:43:18,320 --> 00:43:18,800
Speaker 4: Do you have to?

961
00:43:19,239 --> 00:43:24,799
Speaker 1: Also, you're having a kid. We didn't say she's having triplets, right,

962
00:43:24,960 --> 00:43:30,479
Speaker 1: Like I still remember, Matt, your Volkswagen Jetta, the Vita

963
00:43:30,600 --> 00:43:33,400
Speaker 1: Pissot wagon. Yes, oh yeah, and you had three car

964
00:43:33,520 --> 00:43:36,440
Speaker 1: seats sandwiched next to each other.

965
00:43:36,760 --> 00:43:38,719
Speaker 2: Well in the background. No, No, we were willing we

966
00:43:38,800 --> 00:43:39,279
Speaker 2: were about to.

967
00:43:39,560 --> 00:43:40,839
Speaker 1: Oh I thought you thought you did.

968
00:43:41,160 --> 00:43:43,880
Speaker 2: No, Well, I mean I think we were very willing to.

969
00:43:44,160 --> 00:43:46,239
Speaker 2: But then we came across a pretty good deal. Yeah,

970
00:43:46,239 --> 00:43:48,800
Speaker 2: but that's something that people need to I mean, certainly

971
00:43:49,239 --> 00:43:51,560
Speaker 2: three is tougher. Honestly, I think that's what it came

972
00:43:51,560 --> 00:43:53,000
Speaker 2: down to, because we would have had to have gotten

973
00:43:54,400 --> 00:43:58,799
Speaker 2: like one of two car manufacturer seats our memory, Joel,

974
00:43:59,160 --> 00:43:59,840
Speaker 2: it is failings.

975
00:44:00,920 --> 00:44:02,719
Speaker 1: Yeah, like you would have had to spend a lot

976
00:44:02,760 --> 00:44:04,919
Speaker 1: more on the car seats. Yes, they and it would

977
00:44:04,920 --> 00:44:06,440
Speaker 1: have been such a tight face man.

978
00:44:06,760 --> 00:44:09,040
Speaker 2: Yeah. And granted, I mean this is a pasile wagon

979
00:44:09,239 --> 00:44:11,520
Speaker 2: like those aren't like giant cars. It's not like you're

980
00:44:11,560 --> 00:44:13,440
Speaker 2: throwing you know, three kiddos in the back of a

981
00:44:14,480 --> 00:44:17,279
Speaker 2: like a larger vehicle. But all that being said, we

982
00:44:17,520 --> 00:44:20,480
Speaker 2: certainly rocked a couple of years of having two kiddos

983
00:44:20,520 --> 00:44:22,840
Speaker 2: plus a great Dane in the back of that wagon,

984
00:44:23,040 --> 00:44:26,280
Speaker 2: and it was perfectly fine, even when we're going on trips,

985
00:44:26,320 --> 00:44:27,839
Speaker 2: going on a little road trips, going to see a family.

986
00:44:28,120 --> 00:44:31,560
Speaker 1: So two questions to premise. One is is this car

987
00:44:31,600 --> 00:44:34,080
Speaker 1: at the end of its life? I would say, think again.

988
00:44:34,560 --> 00:44:36,680
Speaker 1: And two, do you need to change cars because you're

989
00:44:36,680 --> 00:44:39,320
Speaker 1: having a kid. I would also say probably not like

990
00:44:40,000 --> 00:44:42,360
Speaker 1: you might want to. That's different. But I would just

991
00:44:42,400 --> 00:44:43,680
Speaker 1: want to question both those premises.

992
00:44:43,760 --> 00:44:45,839
Speaker 2: Totally agree. Yeah, especially when you like, there are different

993
00:44:45,880 --> 00:44:48,960
Speaker 2: car influencers out there. Jill right like, and you're like, oh,

994
00:44:49,120 --> 00:44:51,440
Speaker 2: she's got four kids, and she says she this is

995
00:44:51,480 --> 00:44:53,600
Speaker 2: all she does, and she says that this vehicle, this

996
00:44:53,800 --> 00:44:55,080
Speaker 2: is the one to get. And so I think a

997
00:44:55,120 --> 00:44:57,200
Speaker 2: lot of times, folks, and that's totally fine. If you

998
00:44:57,280 --> 00:44:59,920
Speaker 2: got the money, you're like, all right, let's just put

999
00:45:00,000 --> 00:45:01,759
Speaker 2: down the cash to buy this thing. But for folks

1000
00:45:01,800 --> 00:45:05,600
Speaker 2: who don't need to, or you don't really value that

1001
00:45:06,400 --> 00:45:08,680
Speaker 2: bigger vehicle, I don't know. I just don't like people

1002
00:45:09,080 --> 00:45:12,040
Speaker 2: making decisions like that by default when there are there

1003
00:45:12,120 --> 00:45:13,680
Speaker 2: might be other things that they value in life as

1004
00:45:13,719 --> 00:45:17,600
Speaker 2: opposed to dropping sixty thousand dollars on a used expedition.

1005
00:45:17,719 --> 00:45:21,759
Speaker 2: Max recently got an email from a listener who said, Hey,

1006
00:45:21,960 --> 00:45:25,359
Speaker 2: your recent talk about cars actually had my eye. Yes,

1007
00:45:26,040 --> 00:45:28,920
Speaker 2: and she's like, oh, man, the way you guys talked

1008
00:45:28,920 --> 00:45:30,680
Speaker 2: about how little it was actually gonna save me and gas.

1009
00:45:30,719 --> 00:45:33,560
Speaker 1: So I made the upgrade. Man, I just realized there's

1010
00:45:33,560 --> 00:45:34,719
Speaker 1: so many better things I want to do.

1011
00:45:35,560 --> 00:45:38,280
Speaker 2: So, but there are certain things, whether it's on social

1012
00:45:38,360 --> 00:45:39,920
Speaker 2: media and you see it and you think, oh, this

1013
00:45:40,080 --> 00:45:42,040
Speaker 2: is what you have to do, or if it's just

1014
00:45:42,120 --> 00:45:43,840
Speaker 2: the price of gas as you drive by and you think, oh,

1015
00:45:43,880 --> 00:45:45,960
Speaker 2: my gosh, I'm spending so how much more? And then

1016
00:45:46,000 --> 00:45:48,040
Speaker 2: you actually crunch the numbers and you're like, oh, actually

1017
00:45:48,160 --> 00:45:50,440
Speaker 2: not that much more more. You think, Oh, how's this

1018
00:45:50,520 --> 00:45:53,120
Speaker 2: actually gonna impact my life or make me feel Oh

1019
00:45:53,200 --> 00:45:55,239
Speaker 2: it's somebody on social media. It's designed to make me

1020
00:45:55,360 --> 00:45:58,560
Speaker 2: feel crappy about my situation and about myself. She's got

1021
00:45:58,600 --> 00:46:01,000
Speaker 2: a luxury car. I bet it's got like nice leather interiors.

1022
00:46:01,440 --> 00:46:04,640
Speaker 2: That's actually exactly what you want with kids, because that's

1023
00:46:04,680 --> 00:46:07,160
Speaker 2: gonna avoid cloth lead to easy cleanup.

1024
00:46:07,400 --> 00:46:11,279
Speaker 1: The one actual make and model suggestion I'll give here

1025
00:46:11,600 --> 00:46:15,040
Speaker 1: is the Masta five. That was a car thest and

1026
00:46:15,120 --> 00:46:18,400
Speaker 1: piece we rolled with for many many years, and it

1027
00:46:18,560 --> 00:46:22,280
Speaker 1: was great. It's so cheap, it's got the sliding doors,

1028
00:46:22,640 --> 00:46:25,520
Speaker 1: it has a third row. The mini row is mini minivan.

1029
00:46:25,800 --> 00:46:26,560
Speaker 2: What those are?

1030
00:46:26,800 --> 00:46:30,200
Speaker 1: Yeah, exactly. And this third row is quite small, yeah,

1031
00:46:30,360 --> 00:46:34,960
Speaker 1: definitely like grown men. Grown people cannot really fit in

1032
00:46:35,000 --> 00:46:37,600
Speaker 1: the back of that car very well. But if you're

1033
00:46:37,719 --> 00:46:39,759
Speaker 1: planning on having more kids and you just you're like,

1034
00:46:40,000 --> 00:46:41,800
Speaker 1: it's it's time. I'm done with the electric car. I

1035
00:46:41,880 --> 00:46:44,879
Speaker 1: need something a little bit roomier then that. I think

1036
00:46:44,920 --> 00:46:47,319
Speaker 1: that car is worth looking at because it's it's well made,

1037
00:46:47,480 --> 00:46:49,920
Speaker 1: it's inexpensive when they might as high falutin as the

1038
00:46:49,960 --> 00:46:53,719
Speaker 1: minivans when it though twenty fifteen. Maybe, so you're still

1039
00:46:53,760 --> 00:46:55,799
Speaker 1: talking about an older car. Yeah, yeah, you're definitely talking

1040
00:46:55,800 --> 00:46:57,719
Speaker 1: about an older car. Yeah, so you're to me, then

1041
00:46:57,800 --> 00:46:59,719
Speaker 1: it bill sounds new, But I realized for a lot

1042
00:46:59,760 --> 00:47:00,560
Speaker 1: of people doesn't.

1043
00:47:00,640 --> 00:47:02,560
Speaker 2: Well, for a lot of people, it's you know, you

1044
00:47:02,640 --> 00:47:04,680
Speaker 2: have a twelve year old vehicle, and it's just like, well,

1045
00:47:04,760 --> 00:47:07,200
Speaker 2: I got to upgrade at something that's like three years old,

1046
00:47:07,280 --> 00:47:10,279
Speaker 2: two years old. But you know what's crazy is that

1047
00:47:10,480 --> 00:47:13,440
Speaker 2: cars that are ten fifteen years old when they came out,

1048
00:47:13,440 --> 00:47:16,400
Speaker 2: they're state of the art. And has life changed all

1049
00:47:16,480 --> 00:47:18,880
Speaker 2: that much? And how we get around and how we

1050
00:47:19,000 --> 00:47:20,879
Speaker 2: transport ourselves in the past decade or two.

1051
00:47:21,680 --> 00:47:24,240
Speaker 1: No, like, like you haven't saw a few weimos yesterday,

1052
00:47:24,239 --> 00:47:26,040
Speaker 1: and well made me think that certainly changed.

1053
00:47:26,080 --> 00:47:28,680
Speaker 2: Things have changed, but yeah, things things are safer. I'd

1054
00:47:28,760 --> 00:47:31,560
Speaker 2: rather have a robot a weaymo as opposed to a

1055
00:47:31,719 --> 00:47:34,279
Speaker 2: distracted teenage driver who's on their phone. Right, But like,

1056
00:47:34,440 --> 00:47:37,359
Speaker 2: it's just funny how a decade ago you have something

1057
00:47:37,440 --> 00:47:39,800
Speaker 2: that stated the art and like the newest and greatest technology,

1058
00:47:39,800 --> 00:47:42,000
Speaker 2: and then all of a sudden, ten years later, it's like, oh,

1059
00:47:42,120 --> 00:47:44,319
Speaker 2: well that's garbage. It's like, well, no, that actually kept

1060
00:47:44,320 --> 00:47:46,200
Speaker 2: people safe and was totally fine back then. Things haven't

1061
00:47:46,239 --> 00:47:49,560
Speaker 2: changed all that much. Yeah, right, in our actual physical environment.

1062
00:47:49,360 --> 00:47:50,600
Speaker 1: So you know, we hope that helps.

1063
00:47:50,680 --> 00:47:51,080
Speaker 2: Yeah, all right.

1064
00:47:51,160 --> 00:47:53,759
Speaker 1: Let's give you a question from anonymous who says, if

1065
00:47:53,880 --> 00:47:56,439
Speaker 1: you were to receive one hundred thousand dollars inheritance pre tax,

1066
00:47:56,880 --> 00:47:59,960
Speaker 1: how would you divvied up context we have a mortgage

1067
00:48:00,239 --> 00:48:01,840
Speaker 1: of one hundred and eighty five thousand at six and

1068
00:48:01,880 --> 00:48:04,239
Speaker 1: a half percent. It's our only debt. We have five

1069
00:48:04,320 --> 00:48:06,840
Speaker 1: twenty nine for both our kids, an HSA ROTH and

1070
00:48:06,960 --> 00:48:09,120
Speaker 1: a four O K. We have a high yield savings

1071
00:48:09,120 --> 00:48:11,600
Speaker 1: account with an emergency fund. We haven't been able to

1072
00:48:11,640 --> 00:48:14,560
Speaker 1: add to our WROTH or savings in two years as

1073
00:48:14,600 --> 00:48:17,279
Speaker 1: our son was diagnosed with a rare disease and has

1074
00:48:17,360 --> 00:48:19,480
Speaker 1: been in and out of the hospital. I've tempted to

1075
00:48:19,560 --> 00:48:22,880
Speaker 1: break it into groups of tens, ten thousand to the mortgage,

1076
00:48:23,000 --> 00:48:25,440
Speaker 1: ten thousand to kids five twenty nine, ten thousand to

1077
00:48:25,480 --> 00:48:27,120
Speaker 1: the high yield, max out the Roth ten k to

1078
00:48:27,160 --> 00:48:30,239
Speaker 1: index funds, ten k for son's medical needs, and ten

1079
00:48:30,320 --> 00:48:33,439
Speaker 1: k for an international family vacation. I think that's really

1080
00:48:33,680 --> 00:48:36,080
Speaker 1: all we'll have post taxes, as we live in one

1081
00:48:36,080 --> 00:48:38,080
Speaker 1: of the highest tax states in the country. I feel

1082
00:48:38,120 --> 00:48:40,400
Speaker 1: behind due to lack of savings and investments over the

1083
00:48:40,440 --> 00:48:42,200
Speaker 1: past couple of years. But I had to move to

1084
00:48:42,239 --> 00:48:44,320
Speaker 1: a part time remote position so I could be with

1085
00:48:44,480 --> 00:48:46,480
Speaker 1: my son in the hospital. So I don't want to

1086
00:48:46,480 --> 00:48:48,640
Speaker 1: put it all in investments in paying down the mortgage

1087
00:48:48,840 --> 00:48:50,920
Speaker 1: as we will probably need some of these funds for

1088
00:48:51,040 --> 00:48:53,600
Speaker 1: my son's medical care. Matt, where should we start?

1089
00:48:53,920 --> 00:48:56,279
Speaker 2: Yeah, Well, first off, I'm very sorry to hear about

1090
00:48:56,320 --> 00:49:01,760
Speaker 2: your son, anonymous poster. Beyond that, I'm gonna give the TLDR,

1091
00:49:02,080 --> 00:49:04,040
Speaker 2: which I feel like this was a little bit longer,

1092
00:49:04,120 --> 00:49:06,520
Speaker 2: Like I think, well, I don't know, maybe I don't.

1093
00:49:06,560 --> 00:49:08,160
Speaker 2: There's so much to say here. Like I love that

1094
00:49:08,280 --> 00:49:10,439
Speaker 2: she's talking about breaking it up it up into groups

1095
00:49:10,480 --> 00:49:13,560
Speaker 2: of tens because it just means to me that she's

1096
00:49:13,600 --> 00:49:17,200
Speaker 2: not overly focused on one singular area. But I feel

1097
00:49:17,239 --> 00:49:23,440
Speaker 2: like she's drastically under estimating potential future medical expenses because

1098
00:49:23,440 --> 00:49:25,920
Speaker 2: she said that she they haven't been able to contribute

1099
00:49:25,920 --> 00:49:28,480
Speaker 2: to the roths for the past two years. So that's

1100
00:49:28,560 --> 00:49:31,160
Speaker 2: almost thirty thousand dollars. That is a lot of money.

1101
00:49:31,600 --> 00:49:33,879
Speaker 2: I mean, that tells me that they spent maybe close

1102
00:49:33,920 --> 00:49:35,759
Speaker 2: to that in medical expenses over the past two years.

1103
00:49:36,600 --> 00:49:39,040
Speaker 2: And so when I see you mentioned something like, oh,

1104
00:49:39,080 --> 00:49:40,839
Speaker 2: I would love to put ten down, you know, ten

1105
00:49:40,920 --> 00:49:44,160
Speaker 2: thousand dollars more towards the mortgage, and so that one

1106
00:49:44,280 --> 00:49:47,560
Speaker 2: as well as the additional ten towards your kids five

1107
00:49:47,680 --> 00:49:51,480
Speaker 2: twenty nine, that's great for sure, but those are far

1108
00:49:51,840 --> 00:49:54,160
Speaker 2: more like far off priorities in my book, as opposed

1109
00:49:54,200 --> 00:49:56,919
Speaker 2: to the more immediate need, which might be to making

1110
00:49:56,960 --> 00:49:59,040
Speaker 2: sure that your your son can get the treatment that

1111
00:49:59,080 --> 00:50:00,560
Speaker 2: he needs, that you can go to some of the

1112
00:50:00,600 --> 00:50:04,000
Speaker 2: different follow ups, whatever it is that you might be

1113
00:50:04,080 --> 00:50:06,439
Speaker 2: facing there. So I would, right out of the gate,

1114
00:50:06,480 --> 00:50:08,839
Speaker 2: I would take ten back from the mortgage. I would

1115
00:50:08,840 --> 00:50:11,400
Speaker 2: take ten back from those five twenty nines, and then

1116
00:50:11,560 --> 00:50:14,080
Speaker 2: what you got, boom, thirty thousand dollars. I would take

1117
00:50:14,120 --> 00:50:17,719
Speaker 2: that money. I guess there's you talked about putting another

1118
00:50:17,719 --> 00:50:21,720
Speaker 2: ten thousand dollars in Uh was it a high yields account?

1119
00:50:21,800 --> 00:50:23,800
Speaker 2: Maybe she mentioned, So then you got forty which to me,

1120
00:50:24,680 --> 00:50:26,279
Speaker 2: I would man if it was me, that is one

1121
00:50:26,360 --> 00:50:28,160
Speaker 2: hundred percent of the situation I would want to be in,

1122
00:50:28,320 --> 00:50:31,279
Speaker 2: just to have just a solid forty K sitting there

1123
00:50:31,320 --> 00:50:33,440
Speaker 2: in the highields account. You're earning at least three percent,

1124
00:50:33,880 --> 00:50:37,160
Speaker 2: so it's not like you're missing out on massive returns, right,

1125
00:50:37,280 --> 00:50:38,640
Speaker 2: like yeah, especially if.

1126
00:50:38,520 --> 00:50:42,800
Speaker 1: It helps diminished income, Like yeah, which makes sense, Like

1127
00:50:43,080 --> 00:50:44,879
Speaker 1: I would do the same, right, I'd be working less,

1128
00:50:44,920 --> 00:50:46,839
Speaker 1: making less money, so I could be there, be there

1129
00:50:47,440 --> 00:50:49,759
Speaker 1: for your son. And that makes this inheritance kind of

1130
00:50:49,920 --> 00:50:54,520
Speaker 1: a blessing of sorts to extend your timeline and decrease

1131
00:50:54,560 --> 00:50:55,399
Speaker 1: the pressure you might.

1132
00:50:55,400 --> 00:50:57,480
Speaker 2: Feel to get back out there into the work force.

1133
00:50:57,600 --> 00:50:59,279
Speaker 1: Because you're like, of course, what do I want to do.

1134
00:50:59,360 --> 00:51:00,920
Speaker 1: I want to be with my kid and make sure

1135
00:51:00,960 --> 00:51:04,880
Speaker 1: I'm there for all the appointments, and like, yeah, I

1136
00:51:05,120 --> 00:51:08,200
Speaker 1: would just the if you spread your money too thin

1137
00:51:08,280 --> 00:51:11,680
Speaker 1: and you put it into these illiquid places, the chances

1138
00:51:11,760 --> 00:51:15,680
Speaker 1: that you feel more pressure or actually the financial reality

1139
00:51:15,760 --> 00:51:18,000
Speaker 1: of having to go back to work full time sooner

1140
00:51:18,160 --> 00:51:21,799
Speaker 1: rather than later, that that could hit and that could

1141
00:51:21,960 --> 00:51:24,400
Speaker 1: feel really awful. And yes, it would feel nice to

1142
00:51:24,440 --> 00:51:26,680
Speaker 1: make progress on some of those other financial goals, but

1143
00:51:26,760 --> 00:51:28,840
Speaker 1: I think that's the top priority. And yeah, it would be.

1144
00:51:28,880 --> 00:51:29,960
Speaker 1: It would be for me, It sounds like it.

1145
00:51:29,960 --> 00:51:31,640
Speaker 2: Is for you and Granton. She knows more about the

1146
00:51:31,680 --> 00:51:34,320
Speaker 2: situation and what's going on from a medical standpoint, But

1147
00:51:34,480 --> 00:51:36,080
Speaker 2: like out of the way I'm reading this, they're not

1148
00:51:36,160 --> 00:51:38,279
Speaker 2: totally out of the storm yet, And I would still

1149
00:51:38,320 --> 00:51:40,359
Speaker 2: want to make sure that I've got plenty on hand,

1150
00:51:40,400 --> 00:51:42,200
Speaker 2: plenty of margin to make sure that we can handle

1151
00:51:42,280 --> 00:51:44,560
Speaker 2: any of those those curve balls that this medical condition

1152
00:51:44,719 --> 00:51:45,480
Speaker 2: might toss your way.

1153
00:51:45,520 --> 00:51:47,319
Speaker 1: And I think five point nine plans just make those

1154
00:51:47,480 --> 00:51:50,120
Speaker 1: not a priority right now. Those are, like we've said before,

1155
00:51:50,320 --> 00:51:53,319
Speaker 1: there's scholarships for college, there's financial aid, there are ways

1156
00:51:53,320 --> 00:51:56,480
Speaker 1: to reduce the cost. But trying to continue to load

1157
00:51:56,560 --> 00:51:58,840
Speaker 1: those up, that's just putting pressure on yourself. That's unnecessary

1158
00:51:58,880 --> 00:52:01,399
Speaker 1: one hundred percent. Don't Yeah, take that ten thousand dollars

1159
00:52:01,640 --> 00:52:03,760
Speaker 1: sit on that as cash. Same thing with the mortgage,

1160
00:52:03,800 --> 00:52:05,399
Speaker 1: even though you're like six and a half percent, that's

1161
00:52:05,440 --> 00:52:07,800
Speaker 1: so high, you know what, it's fine, Like once you

1162
00:52:07,840 --> 00:52:09,719
Speaker 1: put it towards a mortgage is gone. Like I mean,

1163
00:52:09,760 --> 00:52:12,080
Speaker 1: I guess you could take it out via helock. But

1164
00:52:13,080 --> 00:52:16,239
Speaker 1: your desire to contribute to your iras, that's that's great.

1165
00:52:16,400 --> 00:52:17,040
Speaker 2: I'm more for that.

1166
00:52:17,320 --> 00:52:19,879
Speaker 1: The roth ira, yeah, yeah, the roths, like we talked

1167
00:52:19,920 --> 00:52:23,480
Speaker 1: about earlier, contributions are accessible. Last, but not least, she

1168
00:52:23,560 --> 00:52:27,160
Speaker 1: mentioned the vacation and were typically saying, when you get

1169
00:52:27,280 --> 00:52:31,239
Speaker 1: an inheritance, it's unexpected money, right that you haven't budgeted for.

1170
00:52:31,360 --> 00:52:33,239
Speaker 1: Do smart things with most of it, but take some

1171
00:52:33,360 --> 00:52:35,759
Speaker 1: of it to enjoy, have some.

1172
00:52:35,880 --> 00:52:38,759
Speaker 2: Fun, create some memories with your kids. I'm absolutely for it.

1173
00:52:38,920 --> 00:52:41,440
Speaker 2: I'm fine with leaving that ten thousand dollars designated for

1174
00:52:41,840 --> 00:52:43,799
Speaker 2: travel for making memories. I think that's great.

1175
00:52:43,840 --> 00:52:45,560
Speaker 1: But maybe you could, I don't know, take two vacations

1176
00:52:45,600 --> 00:52:46,839
Speaker 1: with it. And so I was just thinking, wow, that's

1177
00:52:46,840 --> 00:52:48,440
Speaker 1: a really expensive vacation. But I don't know how many

1178
00:52:48,480 --> 00:52:50,399
Speaker 1: people are in your family or trying to pull our.

1179
00:52:50,320 --> 00:52:52,239
Speaker 2: National trips can be expensive. Yeah, you're heading over to

1180
00:52:52,280 --> 00:52:52,879
Speaker 2: Europe or something.

1181
00:52:52,920 --> 00:52:55,160
Speaker 1: But yeah, it's an inheritance, so don't don't feel like

1182
00:52:55,200 --> 00:52:57,160
Speaker 1: you have to use every dollar wisely. But if you

1183
00:52:57,239 --> 00:53:00,520
Speaker 1: can spend ten percent of it or maybe yeah, if

1184
00:53:00,560 --> 00:53:03,680
Speaker 1: there's more taxation than we're aware of, too, reduce the

1185
00:53:03,680 --> 00:53:06,399
Speaker 1: price of the trip a little bit, but then put

1186
00:53:06,480 --> 00:53:08,520
Speaker 1: the majority of it towards stuff that's going to bolster

1187
00:53:08,600 --> 00:53:11,120
Speaker 1: your ability to live the life you want to be

1188
00:53:11,280 --> 00:53:13,319
Speaker 1: there for your your son really in the coming years.

1189
00:53:13,520 --> 00:53:16,160
Speaker 2: Absolutely, all right, Joel, let's get back to the beer

1190
00:53:17,040 --> 00:53:19,840
Speaker 2: that you and I enjoyed today, which was a wonder struck,

1191
00:53:20,000 --> 00:53:23,400
Speaker 2: a triple ipa not only by a Single Speed brewing company,

1192
00:53:23,640 --> 00:53:27,759
Speaker 2: but back Pocket and Peace Tree. What'd you think one?

1193
00:53:27,960 --> 00:53:30,040
Speaker 1: I love the can colors Candasign.

1194
00:53:30,040 --> 00:53:32,160
Speaker 2: It's like orange and yellow retro.

1195
00:53:32,280 --> 00:53:33,880
Speaker 1: Yeah, it looks good. It feels like the late seventies.

1196
00:53:34,040 --> 00:53:36,680
Speaker 1: I love that Single Speed is the main brewery. Like

1197
00:53:36,760 --> 00:53:37,800
Speaker 1: going with a bike motif.

1198
00:53:38,200 --> 00:53:41,200
Speaker 2: That's cool. That's the best vehicle to tote your kids around.

1199
00:53:41,200 --> 00:53:42,439
Speaker 1: That's true, that's true.

1200
00:53:42,800 --> 00:53:43,439
Speaker 2: Cargo bike.

1201
00:53:43,560 --> 00:53:45,120
Speaker 1: Cargo bikes are so great, so underrated.

1202
00:53:45,200 --> 00:53:48,480
Speaker 2: I'm so glad that. Yeah, people they know to not

1203
00:53:48,800 --> 00:53:51,440
Speaker 2: completely count on us saying that a cargo bike is

1204
00:53:51,480 --> 00:53:54,360
Speaker 2: the solution to every problem. I feel like for a

1205
00:53:54,440 --> 00:53:57,120
Speaker 2: while there people are probably like, dudes, we're tired of

1206
00:53:57,200 --> 00:53:59,239
Speaker 2: hearing y'all talk about riding around in your cargo bike

1207
00:53:59,280 --> 00:54:01,440
Speaker 2: and you're through your neighborhood taking your kids to school.

1208
00:54:01,480 --> 00:54:03,439
Speaker 1: But do it so much because our kids had gotten older.

1209
00:54:03,440 --> 00:54:05,480
Speaker 1: They're riding their own bikes, right, But it was it's

1210
00:54:05,520 --> 00:54:06,320
Speaker 1: fun at lasting.

1211
00:54:06,440 --> 00:54:06,640
Speaker 2: Yeah.

1212
00:54:06,719 --> 00:54:06,839
Speaker 3: Uh.

1213
00:54:07,320 --> 00:54:09,760
Speaker 1: To me, this one had like some bitter, pithy citrus

1214
00:54:09,880 --> 00:54:10,400
Speaker 1: notes going on.

1215
00:54:10,520 --> 00:54:12,600
Speaker 2: It was sharp. Yeah, this is like the difference between

1216
00:54:12,640 --> 00:54:14,919
Speaker 2: like a mild cheddar and like a sharp extra sharp cheddar,

1217
00:54:15,160 --> 00:54:16,520
Speaker 2: like when you bite into it and you're like, whoa,

1218
00:54:17,040 --> 00:54:18,799
Speaker 2: all right, yeah you kind of have to be ah.

1219
00:54:18,920 --> 00:54:21,160
Speaker 2: It was kicking put some hair on your chest exactly.

1220
00:54:21,520 --> 00:54:24,360
Speaker 2: It reminds me of some of those West like Green Flash,

1221
00:54:24,760 --> 00:54:26,840
Speaker 2: some of their beers were, I mean a lot of

1222
00:54:26,920 --> 00:54:31,320
Speaker 2: them were a lot like this, just really really strong,

1223
00:54:31,440 --> 00:54:32,279
Speaker 2: really pungent, you know.

1224
00:54:32,800 --> 00:54:35,040
Speaker 1: But yes, but this to me was hitting both those

1225
00:54:35,080 --> 00:54:37,800
Speaker 1: nuts because I even I wrote down in my tasting

1226
00:54:37,840 --> 00:54:40,960
Speaker 1: notes that it's not it's not West Coast bitter, it's

1227
00:54:41,200 --> 00:54:45,799
Speaker 1: it's balanced while being like a really really big beer

1228
00:54:46,280 --> 00:54:49,320
Speaker 1: ramped up. Yeah, this was not insignificant little thing. It

1229
00:54:49,400 --> 00:54:51,960
Speaker 1: was a big old triple I p a, you're whacking

1230
00:54:52,000 --> 00:54:54,000
Speaker 1: those taste buds hard in the best way, and.

1231
00:54:54,000 --> 00:54:57,080
Speaker 2: I guess that's how they do it. They're out of Waterloo, Iowa.

1232
00:54:57,280 --> 00:54:59,880
Speaker 2: So yeah, thanks again Clint for sending this one out.

1233
00:55:00,239 --> 00:55:02,360
Speaker 2: I'm glad Joel, you and I that we got to

1234
00:55:02,440 --> 00:55:04,680
Speaker 2: enjoy this one that we got to share on today's episode.

1235
00:55:04,760 --> 00:55:07,040
Speaker 2: But listeners can find our show notes up on the

1236
00:55:07,080 --> 00:55:10,320
Speaker 2: website at howdomoney dot com. By the way, if you

1237
00:55:10,440 --> 00:55:13,080
Speaker 2: have not left us a review, I guess we might

1238
00:55:13,120 --> 00:55:15,160
Speaker 2: have a whole lot of Maybe there's some newer listeners

1239
00:55:15,200 --> 00:55:17,640
Speaker 2: who have only recently joined us twenty twenty six of

1240
00:55:17,760 --> 00:55:19,239
Speaker 2: the year that they're going to get their finances in

1241
00:55:19,320 --> 00:55:21,680
Speaker 2: shape right. Well, if you have enjoyed the show, head

1242
00:55:21,719 --> 00:55:24,319
Speaker 2: two Apple podcasts wherever it is that you might listen

1243
00:55:24,360 --> 00:55:26,279
Speaker 2: to podcasts, leave us a solid review over there. It

1244
00:55:26,320 --> 00:55:28,279
Speaker 2: helps to get the word out. Say something nice about

1245
00:55:28,320 --> 00:55:30,320
Speaker 2: how good looking around it or something allows us to

1246
00:55:30,400 --> 00:55:33,640
Speaker 2: continue to create this show, which I want to continue

1247
00:55:33,719 --> 00:55:36,279
Speaker 2: to do. So we like it. Yeah, we appreciate y'all.

1248
00:55:36,280 --> 00:55:38,000
Speaker 1: It's a good gig all right. Well, like like the

1249
00:55:38,040 --> 00:55:38,640
Speaker 1: community too.

1250
00:55:38,719 --> 00:55:39,239
Speaker 2: Y'all have the best.

1251
00:55:40,080 --> 00:55:42,839
Speaker 1: Until next time, Best Friends Out, Best Friends Out.