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

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Speaker 1: and today we are answering your listener questions.

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Speaker 2: Yes we are. We've got listener questions lined up for you.

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Speaker 3: Today. We're gonna talk about a zero percent balance transfer card,

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Speaker 3: if that makes sense for a particular listener. Another listener

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Speaker 3: is wondering what she should be doing with an out

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Speaker 3: of control car Loan and I'm really excited about this question.

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Speaker 3: But a listener she's trying to make the most of

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Speaker 3: a sabbatical because typically when you are taking a sabbatical,

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Speaker 3: you don't make a whole lot of money, right because

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Speaker 3: you're not working. But how can you actually use that

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Speaker 3: sabbatical to boost your finances? That is what we're gonna

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Speaker 3: be talking about today.

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Speaker 1: It's like counterintuitive but also revolutionary, Like it's possible to

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Speaker 1: actually like get less but make some smart financial moves

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Speaker 1: in the process. So we'll talk about that and more

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Speaker 1: on today's episode.

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Speaker 3: Matt.

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Speaker 1: Real quick, just kind of a PSA for folks. There's

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Speaker 1: still time to contribute to a roth Ira for calendar

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Speaker 1: year twenty twenty three or less than you got less

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Speaker 1: than two months to do so now. But I think

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Speaker 1: people forget oh, just because of the deadline something like

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Speaker 1: March seventeenth. It's never on March fifteenth. It's always, I'm sorry,

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Speaker 1: not March April. It's never actually April fifteen. It's March

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Speaker 1: tax filing deadline for.

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Speaker 2: The business, for your business. I got business on my mind. No,

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Speaker 2: it's usually the tax filing deadline, so it is, but the.

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Speaker 3: Tax filing never. I feel like in the past few years,

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Speaker 3: it's always been like seventeenth or eighteen. Yeah, it's like,

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Speaker 3: I'm pretty sure on.

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Speaker 2: The fifteen year on a weekend, so fifteenth.

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Speaker 1: It's just I think sometimes people wonder or they're logging in,

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Speaker 1: let's say, to make a contribution, and they see that

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Speaker 1: they can make a contribution for twenty twenty three and

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Speaker 1: for twenty twenty four.

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Speaker 2: They're a little confused. They're not sure which one to do.

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Speaker 1: But if you haven't maxed out your WROTH for twenty

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Speaker 1: twenty three yet, don't start sicking money in twenty twenty

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Speaker 1: four roth yet continue to put it in twenty twenty three.

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Speaker 1: You might not be able to max it out. Hopefully

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Speaker 1: you can, but until you've kind of exhausted or gone

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Speaker 1: past that point where you can contribute to the roth

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Speaker 1: Ira for last year, whether it's by maxing it out

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Speaker 1: or getting or reaching that date where the drop dead date,

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Speaker 1: that's when you want to start then prioritizing the twenty

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Speaker 1: twenty four roth bucket.

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Speaker 3: Yeah, it's almost like I picture it being on this

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Speaker 3: sort of conveyor belt. It's on this conveyor belt of

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Speaker 3: time and it's this bucket and it's.

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Speaker 2: Starting to slide under the wall.

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Speaker 3: But you know what, like there's still a little bit

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Speaker 3: of that bucket left open. Then you can toss your

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Speaker 3: money into the bucket real quick.

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Speaker 2: For the game show. I kind of picture it almost

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Speaker 2: like a like an arcade game or anything like that.

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Speaker 1: Yeah, it's like you're reaching that deadline, but you got

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Speaker 1: to get phone a friend and get that money there.

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Speaker 2: Yeah.

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Speaker 3: In the roth Ira twenty twenty three, all right, let's

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Speaker 3: introduce our beer. You and I are enjoying a hop Showers.

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Speaker 3: This I'm pretty sure is gonna be another great one

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Speaker 3: by Other Half Brewing. Excited to enjoy it and share

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Speaker 3: our thoughts at the end of the episode.

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Speaker 1: If they make a bad beer, I'd be curious to

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Speaker 1: taste it, because like never had one that sucked from

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Speaker 1: them so yeah, we'll give our thoughts on this one.

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Speaker 3: So I'll say folks are probably thinking, man, they've been

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Speaker 3: drinking a lot of other Half. Well, we had a

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Speaker 3: listener send us like another half care package directly from

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Speaker 3: the brewery. That was amazing too. Yeah, oh my gosh,

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Speaker 3: yeah that was that was huge. But then I don't

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Speaker 3: think we've touched on this, but you were able to

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Speaker 3: go and you picked up a bunch in person while

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Speaker 3: you were up there.

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Speaker 2: When was that?

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Speaker 3: That was October October yeah, which is crazy. But again,

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Speaker 3: like we discussed recently, still good.

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Speaker 2: Still good. All right, let's move on.

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Speaker 1: Let's get to the listener questions for today. And if

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Speaker 1: you have a money question you want Matt and I

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Speaker 1: to tackle on an upcoming episode, we'd love to hear it.

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Speaker 1: Just go to how to money dot com slash ask

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Speaker 1: for the simple instructions for how to submit your voice memo.

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Speaker 1: But really that's all it is, recording a voice memo,

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Speaker 1: sending it our way via email, and how to moneypod

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Speaker 1: at gmail dot com.

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Speaker 2: And Matt.

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Speaker 1: This first question comes from a listener who is wondering, Hey,

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Speaker 1: can I use a sabbatical to my financial advantage?

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Speaker 4: Hey, Matt and Joel. This is Ariel calling out of Philadelphia,

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Speaker 4: and I have a kind of unique situation this year

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Speaker 4: where I decided to quit my job and take some

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Speaker 4: time for myself. I had built up some savings and

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Speaker 4: was able to travel and kind of reset, and I

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Speaker 4: wanted to take the opportunity to take some of my

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Speaker 4: four oh one k earnings and while I have very

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Speaker 4: very little income for this year, possibly transfer those using

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Speaker 4: a backdoor roth ira, especially considering maybe I won't end

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Speaker 4: up paying many taxes on it considering my income. So

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Speaker 4: I was calling to see if you guys had any

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Speaker 4: words of wisdom for how I could accomplish that. Love

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Speaker 4: the podcast and thanks for your input.

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Speaker 3: All right, Aeriel, And first off, we love that you

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Speaker 3: are using some of this financial freedom, some of this

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Speaker 3: financial independence that you have gained to your advantage. Yeah,

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Speaker 3: we specifically talk about the stages of five and sabbatical five.

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Speaker 3: That's one of them. Reaching financial independence. It is not

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Speaker 3: this all or nothing endeavor, and we think that just

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Speaker 3: by what many people say, yeah, no, it does not.

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Speaker 3: It's not a it's not a binary decision. And I

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Speaker 3: think if you can just use some of this hard

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Speaker 3: earned freedom along the way, well, that's something that we

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Speaker 3: would encourage, and we hope that this time for you

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Speaker 3: has been refreshing you can befull maybe get back out

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Speaker 3: there kick some more butt. Although I take that back

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Speaker 3: because that assumes you want to kick button. I feel

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Speaker 3: like one of the things you do when you are

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Speaker 3: on a sabbatical is you kind of do some introspection.

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Speaker 2: Because we don't.

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Speaker 3: Know how much Ariel has set aside and sockd away

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Speaker 3: into retirement. We don't know how old she is. Maybe

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Speaker 3: you have taken this time to realize, you know what.

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Speaker 3: I don't want to get back into the hustle and

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Speaker 3: bustle of life if that's something that you're capable of,

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Speaker 3: So I want you to live the life that you

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Speaker 3: want to live Ariel.

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Speaker 1: Yeah, and I think a sabbatical can really help you

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Speaker 1: hone in on what that is for you. Yes, it's

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Speaker 1: really hard, kind of in the rigors of the day

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Speaker 1: to day, the week to week, the month to month,

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Speaker 1: and just kind of the the I don't want to

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Speaker 1: say daily grind, but for a lot of people it

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Speaker 1: feel like a daily grind is daily grind.

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Speaker 4: Yeah.

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Speaker 3: We don't oftentimes give ourselves enough time to reflect. And yeah,

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Speaker 3: I hope that aerial is not just RESTful, but that

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Speaker 3: it's the time to actually think about some of the

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Speaker 3: different things we want in life. I think that's one

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Speaker 3: of the great things about sabbaticals and what they allow.

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Speaker 2: You to do.

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Speaker 1: Yeah, she might decide she wants to get out of

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Speaker 1: consulting and wants to start like a goat yoga practice

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Speaker 1: or something like that, and I would be all about that.

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Speaker 2: I think it's great, Like start your own business, aar

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Speaker 2: or whatever, like or a cat cafe that's where you

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Speaker 2: sit there and.

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Speaker 1: So many options, so many animal based options. Yeah, that's

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Speaker 1: that's what we're all about here. You open up a

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Speaker 1: place called the Hamster House. I don't know whatever you're into.

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Speaker 3: Is that like a happy meals and hamsters. It's like

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Speaker 3: it's a burger joint and there's hamster's running around in

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Speaker 3: the tubes.

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Speaker 1: That just sounds whack. But I kind of like it

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Speaker 1: did evers like something you'd find in Japan, doesn't it.

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Speaker 1: I kind of Did you ever have a hamster?

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Speaker 4: Kid?

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Speaker 2: You going up? No, I did have a bunny rabbit.

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Speaker 2: Everybody had a hamster.

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Speaker 1: And my daughter asked me the today, she said, did

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Speaker 1: you ever feed skittles of bunny skittles. I was like, no,

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Speaker 1: I'm pretty sure that would have been That would have

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Speaker 1: been terrible bunny rabbit abuse.

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Speaker 2: Yeah, my hamster died in the pool.

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Speaker 3: He escaped out of the uh, escaped out of his cage,

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Speaker 3: chewed through the wire screened in porch, and found him

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Speaker 3: on the top step of the pool.

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Speaker 2: You had like a maguiver hamster.

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Speaker 3: My goodness, he was resourceful. I'll say that all right,

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Speaker 3: back to the question hand. Sorry, Ariel's question getting derailed.

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Speaker 3: We digress with our jokes.

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Speaker 1: Well, I think the truth is too that if you

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Speaker 1: playing things well, you can use a sabbatical or a

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Speaker 1: lower earning year to make some impactful financial moves that

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Speaker 1: are in your long term best interest. So most of

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Speaker 1: the time, Matt, people think of it as like, all right,

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Speaker 1: I've socked away enough money. I can take this six months,

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Speaker 1: nine months, one year off or whatever, and I'm not

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Speaker 1: going to be screwed financially for doing so. But the

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Speaker 1: truth is there's actually some positive impact you can make

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Speaker 1: on your finances even while you're stepping away from a job.

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Speaker 1: And so, yeah, not making much money will of course

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Speaker 1: put you in a lower income tax bracket, reducing how

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Speaker 1: much you owe in taxes. And so if you opt

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Speaker 1: to do what Aerial is doing and you shift some funds,

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Speaker 1: let's say, from a traditional to a WROTH account in

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Speaker 1: a low income year, you can potentially avoid tax altogether

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Speaker 1: by doing a conversion of those funds. And Ariel, she

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Speaker 1: mentioned a backdoor wroth, but this is actually all about

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Speaker 1: converting money that you funneled into traditional accounts and turning

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Speaker 1: those dollars into wroth dollars that are going to grow

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Speaker 1: and be spent tax free in the future. So, yeah,

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Speaker 1: this is the perfect chance lower income year pay much

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Speaker 1: less tax, potentially zero tax on money that you're converting.

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Speaker 2: That's right.

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Speaker 3: Yeah, And so Joel, you just mentioned avoiding taxation completely.

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Speaker 3: How much tax you'll be able to avoid on this conversion,

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Speaker 3: It depends on how much you actually make this year,

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Speaker 3: and because of the much higher standard deduction, if you

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Speaker 3: make basically nothing, well, you can convert up to fourteen

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Speaker 3: six hundred dollars for single filers and nearly thirty thousand

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Speaker 3: dollars if you're married filing jointly. Specifically, it's I think

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Speaker 3: twenty nine two hundred dollars and any dollars converted that

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Speaker 3: keep your agi under that threshold won't be taxed. But

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Speaker 3: you might want to convert even more. And that actually

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Speaker 3: might make sense too, because especially if dollars you're converting

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Speaker 3: are just they're simply going to be in the ten

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Speaker 3: or the twelve percent tax bracket, is likely going to

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Speaker 3: again one of the lowest earning years where you are

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Speaker 3: going to be able to convert some of those funds

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Speaker 3: without having to pay a ton of tax.

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Speaker 1: Yeah, you might want to avoid tax all together. It's

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Speaker 1: pretty hard to do that in your life, but a

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Speaker 1: super low tax bracket is a pretty good time.

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Speaker 2: You're also a good thing.

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Speaker 3: Yeah, So once you start moving beyond that point, it's

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Speaker 3: likely best to not do any more conversions. But ultimately

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Speaker 3: we do think that rolling at least some of those

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Speaker 3: four when K funds into a roth IRA it can

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Speaker 3: make a ton of sense for you in this low

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Speaker 3: income year. And it would be even more ideal if

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Speaker 3: the market were also downed.

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Speaker 2: But unfortunately that's not the case.

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Speaker 1: That would be a double amy, right if David markt

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Speaker 1: was down twenty twenty five percent and you're in a

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Speaker 1: year where you are making next to nothing, able to

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Speaker 1: make those conversions, and you also have the cash on

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Speaker 1: hand to pay the tax for those conversions that you're making,

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Speaker 1: right the best. Yeah, So that it takes me back

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Speaker 1: to our conversation actually with tax professional Sean mulaney in November.

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Speaker 1: He's goes by the five tax Guy online, and this

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Speaker 1: is exactly why he's a fan of contributing to your

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Speaker 1: traditional four oh one K and not opting for the

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Speaker 1: Wroth option. And I think so much depends on your

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Speaker 1: income and you're expected income about which one makes the

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Speaker 1: most sense for you in a given year. But his

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Speaker 1: whole point is, and I totally see why he stresses this,

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Speaker 1: is that it allows for future tax planning.

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Speaker 2: Right.

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Speaker 1: If you take the tax hit now, well, you can't

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Speaker 1: really plan to take it at a better time for

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Speaker 1: you in the future. You've kind of already baked than

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Speaker 1: the tax cake at that point. And so this is

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Speaker 1: a chance for Aerial to say, listen, i took the

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Speaker 1: tax break maybe in a higher earning year, and now

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Speaker 1: I'm going to pay the taxes in a lower earning

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Speaker 1: year yeap, which is just smart, right, That's how you

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Speaker 1: do it. Yeah, and not everyone is going to take

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Speaker 1: a lengthy sabbatical like Ariel did right experiencing a year

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Speaker 1: of little to no income. But still we would stress

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Speaker 1: that it's possible to find smart times to make a

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Speaker 1: conversion that are going to help you to pay fewer

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Speaker 1: taxes overall. And if you can contribute straight to the ROTH,

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Speaker 1: that can still make sense. But so much depends again

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Speaker 1: on how much you make your AGI, whether or not

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Speaker 1: you desire that future of flexibility, and like what your

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Speaker 1: likely retirement data is, all that kind of stuff. There's

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Speaker 1: a lot that goes into this. If you're a prepared planner,

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Speaker 1: these types of moves can save you thousands of dollars

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Speaker 1: or even tens of thousands of dollars a ton of

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Speaker 1: money in future taxation. So this is not some sort

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Speaker 1: of like insignificant move. It can move the needle in

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Speaker 1: regards to your holistic tax picture.

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Speaker 3: Yeah, and actually we've got to post up on the

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Speaker 3: website about how you can perform a ROTH conversion, and

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Speaker 3: it's specifically for earlier retire but bottom line, the mechanics

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Speaker 3: are the same. You don't have to be early retiring

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Speaker 3: in order to pull this thing off.

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Speaker 1: You can kind of like semi early retire in the

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Speaker 1: form of a sabbatical and still this concept applies exactly.

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Speaker 3: Yeah, and we're specifically discussing those conversions after retiring, but

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Speaker 3: we want you to do some of that along the way,

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Speaker 3: just like you're taking this little mini vacation now it's

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Speaker 3: not even a many vacation, it's like a mini retirement

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Speaker 3: along the way. But making these conversions now up to

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Speaker 3: a point, not beyond those income thresholds. Of course, within

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Speaker 3: this year that you know you're gonna earn next to nothing,

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Speaker 3: it's going to help you to realize these tax savings

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Speaker 3: on future growth. And you didn't specifically say that you're

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Speaker 3: moving to a different brokerage, but if you are, and

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Speaker 3: you are doing something more than just changing the type

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Speaker 3: of account, basically that those funds are in, you are

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Speaker 3: going to have to fill out a bunch of paperwork

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Speaker 3: initiate a transfer. And were you to do that, make

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Speaker 3: sure that you initiate a trustee a trustee transfer as

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Speaker 3: opposed to having them cut you a check, because once

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Speaker 3: you were to do that, that's when the clock starts

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Speaker 3: taking and you've got sixty days in order to get

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Speaker 3: those funds within a or within a retirement account before

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Speaker 3: you get penalized. Significantly before you get taxed significantly, and

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Speaker 3: that's something that we want you to avoid. But hopefully

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Speaker 3: don't let the money hit your hands. Yeah, yeah, hopefully

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Speaker 3: you let's say your work sponsored for O and K

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Speaker 3: is with let's say fidelity, and so that's a that's

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Speaker 3: an easy conversion. You don't even those funds. Don't even

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Speaker 3: need to leave the house, simple man. Yeah, for sure,

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Speaker 3: and just changing rooms within the house.

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Speaker 1: So we're just hoping, Yeah, you're in a low cost

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Speaker 1: house right exactly already in the very affordable house.

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Speaker 2: Yeah, and you just moved through it. That does a

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Speaker 2: different great job.

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Speaker 1: But it's important to mention, and I mentioned this briefly, Matt,

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Speaker 1: that Ariel has if she is converting some money that

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Speaker 1: is above that standard deduction threshold, that she has enough

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Speaker 1: money set aside in tax to pay come next April,

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Speaker 1: because she's going to be here with the tax bill.

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Speaker 1: But you can pretty much identify, well, how big is

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Speaker 1: that tax bill going to be? Oh, I made thirty

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Speaker 1: grand this year and I'm converting sixty grand. I'm going

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Speaker 1: to owe someone in the neighborhood of ten eleven percent

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Speaker 1: on that sixty grand. So you can kind of figure

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Speaker 1: out about how much you're going to owe. But you

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Speaker 1: want to plan for that because you don't want to

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Speaker 1: be left in the lurch and eradicate all your savings

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Speaker 1: or work. Not have enough savings on hand to pay

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Speaker 1: the tax once it comes due's right, and especially if

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Speaker 1: you're not making money like it could get tight. So

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Speaker 1: you just want to make sure you're buttoned up on

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Speaker 1: that front. And one other thing I wanted to mention

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Speaker 1: matt our friend Gillian John's orde. She talks about retiring often.

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Speaker 1: I think she's taken something like twelve mini sabbaticals. We

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Speaker 1: need to have her on the show actually soon to

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Speaker 1: talk about that. But I think that's a really healthy approach.

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Speaker 1: We talk about how most Americans don't take their vacation time,

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Speaker 1: the vacation time that's allotted to them, and even when

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Speaker 1: they do, they're like tied at the hip to their

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Speaker 1: email or taking phone calls and stuff like that. We

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Speaker 1: have an unhealthy relationship to our work. And like you

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Speaker 1: said kind of at the beginning, this can be a

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Speaker 1: great time to take stock, but it can also be

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Speaker 1: just a great practice to say, listen, I'm just going

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Speaker 1: to take the time that I'm allotted off and actually

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Speaker 1: I'm going to try to take more than that because

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Speaker 1: I think it's actually gonna help make me, help me

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Speaker 1: be able to enjoy my job, continue on in my career,

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Speaker 1: and not get burned out. And that's true. If you ask,

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Speaker 1: most Americans guess what they're burned out in their day job.

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Speaker 1: And that's a bad trend. The other thing I wanted

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Speaker 1: to mention real lick. Our friend Joel mentioned this to

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Speaker 1: pss PSSs. He mentioned this to me, and he's spot on.

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Speaker 1: He's taken so many sabbaticals too, and he said, if

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Speaker 1: you're going to take a year off planet from July

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Speaker 1: to July, the reason being that way you have two

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Speaker 1: years of lower income instead of just like you've got

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Speaker 1: multiple years to play in your taxes, two years in

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Speaker 1: which you can potentially say bigger on taxes.

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Speaker 2: It makes a lot of sense.

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Speaker 3: Yeah, all right, We've got more to get to, including

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Speaker 3: a listener who is considering a lease, specifically a car

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Speaker 3: lease in order to get out of a sticky financial situation.

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

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Speaker 2: All right, Matt, we're back.

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Speaker 1: We got more listener questions to get to on this episode.

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Speaker 1: A lot of really good ones today And this next

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Speaker 1: one comes from a listener who took out a car

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Speaker 1: loan and it sounds like the dealership kind of mester over.

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Speaker 5: Hi there, this is Alexandra from Pittsburgh. I just wanted

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Speaker 5: to say I love the podcast and I was wondering

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Speaker 5: if you guys could help with a car loan that

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Speaker 5: I have for a vehicle that was listed originally for

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Speaker 5: sixteen thousand, but by the time I left the dealership

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Speaker 5: it was twenty five thousand, So now it has a

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Speaker 5: negative balance and I'm trying to get into a lease

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Speaker 5: because this has just keep depreciating. There's no way to

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Speaker 5: put value in this car right now and appreciate it

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Speaker 5: more than I don't know, seventy eight thousand dollars maybe,

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Speaker 5: So I'm trying to figure out what's my recourse, Like,

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Speaker 5: I don't know how to get out of this.

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Speaker 2: Thank you, by all right, Alexandria.

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Speaker 3: First of all, we are incredibly sorry to hear that

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Speaker 3: you bought what you thought was going to be a

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Speaker 3: sixteen thousand dollars car, but then the dealership that you

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Speaker 3: went to added in some ridiculous fees and jacked up

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Speaker 3: the price. We actually so we recently talked about the

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Speaker 3: cars rule that was currently an FTC proposal, and that

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Speaker 3: would actually tamp down on dealerships and because they're the

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Speaker 3: worst defenders at sticking in ridiculous warranties, unnecessary fees that

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Speaker 3: increased the price of the car.

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Speaker 1: It's sound like every dealership is pulling out, But man,

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Speaker 1: there are a number of There's a reason the FTC

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Speaker 1: is going in this direction trying to create a rule

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Speaker 1: like this, because there's enough of them to treat people

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Speaker 1: like Alexander got treated, and they want to put the

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Speaker 1: kibosh on that.

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Speaker 3: Us right, and it would help to reduce this very

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Speaker 3: kind of experience. And it sounds like, honestly, it sounds

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Speaker 3: like you were taking advantage of which really pisses me off.

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Speaker 3: And now it has put you in a tough financial position,

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Speaker 3: and so you can't undo this necessarily. But that being said,

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Speaker 3: there are some things that you can do to mitigate

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Speaker 3: the negative financial impact.

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Speaker 2: Yeah, and I share your frustration, Matt.

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Speaker 1: It's tough to see someone who is trying to do

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Speaker 1: their best buy a used car, buy a used car

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Speaker 1: at a reasonable price, kind of get screwed over to

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Speaker 1: the tune of thousands and thousands of dollars that she

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Speaker 1: can't afford to lose. And Alexander, you mentioned getting rid

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Speaker 1: of this car and hopping into a lease. That is

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Speaker 1: not the route weed to just you take, and in fact,

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Speaker 1: it'll put you in even more difficult shape from a

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Speaker 1: financial perspective. So we definitely don't want you to go

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Speaker 1: in that direction. Leasing is almost never smart on the

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Speaker 1: money front, like there are I guess is the rare

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Speaker 1: exception where a a car manufacturer has way too many

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Speaker 1: of a certain model and marks down the leases significantly,

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Speaker 1: But that is, I will say that is rare, indeed,

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Speaker 1: And so it's basically a lifestyle choice, a lifestyle move

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Speaker 1: for folks who have plenty of cash, and that new

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Speaker 1: car smell every two or three years is their craft

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Speaker 1: Bear equivalent. Like they're like, listen, I know it's not

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Speaker 1: smart financially, but I've got the money to do it,

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Speaker 1: and I'm going to do it anyway. And that's just

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Speaker 1: not where you're at right now. So we know it's

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Speaker 1: not what you want to hear, but our suggestion would

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Speaker 1: be to keep the car and to do the best

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Speaker 1: with the tough hand that you've been dealt. It feels

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Speaker 1: like tough medicine, especially when kind of someone else has

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Speaker 1: infected you with some sort of crummy virus. Right, But

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Speaker 1: I do think that that's your best path forward. And

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Speaker 1: we've got some other advice for you here too, But

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Speaker 1: keeping that car longer time is going to help heal

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Speaker 1: that wound.

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Speaker 3: That's right well, and specifically, like she's she's looking to

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Speaker 3: a lease in order to it seemed like she was

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Speaker 3: really upset about the fact that, like how much is

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Speaker 3: depreciated and how basically she's upside down in it. But

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Speaker 3: like that is what cars do. Like cars do not appreciate.

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Speaker 3: They always go down to value. That's a welly for

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Speaker 3: most car owners, unless you have a classic car like

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Speaker 3: my buddy that's got an eighties FJ, which has actually

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Speaker 3: gone up in value. But that's an incredibly different type

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Speaker 3: of vehicle and that's not what most people are driving.

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Speaker 1: I'm hoping if I hold onto my two thousand Highvacurate

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Speaker 1: in like twenty five years, guess what it's gonna It's

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Speaker 1: gonna be a Classic two.

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Speaker 3: That's not what's gonna happen most likely, though, Because cars

437
00:18:19,280 --> 00:18:20,280
Speaker 3: do depreciate, they.

438
00:18:20,200 --> 00:18:20,920
Speaker 2: Go down in value.

439
00:18:20,960 --> 00:18:23,000
Speaker 3: And I think one of the difficulties is when we

440
00:18:23,040 --> 00:18:25,320
Speaker 3: think about cars like they are really expensive, and so

441
00:18:25,440 --> 00:18:28,399
Speaker 3: we mentally put them in the same category as like

442
00:18:28,440 --> 00:18:30,520
Speaker 3: a house, right, because you're like, oh, this is something,

443
00:18:30,560 --> 00:18:32,560
Speaker 3: it's a I don't know. You get inside both of them.

444
00:18:32,720 --> 00:18:34,080
Speaker 3: They both keep you dry when it's raining.

445
00:18:34,720 --> 00:18:36,159
Speaker 2: You put one inside of the other if you have

446
00:18:36,200 --> 00:18:36,639
Speaker 2: a garage.

447
00:18:37,480 --> 00:18:40,000
Speaker 3: But cars are not the same as homes. Homes which

448
00:18:40,040 --> 00:18:43,800
Speaker 3: typically do appreciate, and cars only depreciate. And instead, we

449
00:18:44,160 --> 00:18:46,879
Speaker 3: would recommend for you to think about cars like any

450
00:18:46,960 --> 00:18:49,560
Speaker 3: other good that you would purchase, Like, think about them

451
00:18:49,560 --> 00:18:51,720
Speaker 3: like as like as a jacket or as a.

452
00:18:51,640 --> 00:18:52,240
Speaker 2: Pair of shoes.

453
00:18:52,840 --> 00:18:55,119
Speaker 3: They book, they're gonna do the job that they do,

454
00:18:55,160 --> 00:18:57,640
Speaker 3: but then beyond that, they're not gonna be worth more

455
00:18:57,720 --> 00:19:00,720
Speaker 3: money after the fact, contrary to most homes.

456
00:19:00,840 --> 00:19:02,320
Speaker 1: Just have a garage sale and see if you get

457
00:19:02,359 --> 00:19:03,840
Speaker 1: anything close to what you paid for any of the

458
00:19:03,840 --> 00:19:04,520
Speaker 1: items you're selling.

459
00:19:04,560 --> 00:19:06,800
Speaker 3: Yeah, exactly, But Joel, you're talking about for her to

460
00:19:06,840 --> 00:19:10,120
Speaker 3: hang on to the car, that is exactly the right move,

461
00:19:10,160 --> 00:19:12,399
Speaker 3: because I think we also have a tendency to like

462
00:19:12,520 --> 00:19:16,240
Speaker 3: distance ourselves from something that is even remotely associated with

463
00:19:16,280 --> 00:19:18,240
Speaker 3: a bad experience. Yeah, And so it's almost like a

464
00:19:18,320 --> 00:19:20,800
Speaker 3: knee jerk emotional reaction where you're like, I don't want

465
00:19:20,800 --> 00:19:22,800
Speaker 3: to get that thing as far away from me as possible.

466
00:19:22,800 --> 00:19:24,920
Speaker 3: But that doesn't necessarily mean that this is a bad car.

467
00:19:24,760 --> 00:19:26,720
Speaker 1: For you, Right, You're like, I got jobbed, so it's

468
00:19:26,760 --> 00:19:28,600
Speaker 1: time for me to get rid of this thing and

469
00:19:28,680 --> 00:19:30,240
Speaker 1: distance myself from the emotional.

470
00:19:29,920 --> 00:19:32,120
Speaker 3: And this car from Yeah, and so maybe every time

471
00:19:32,160 --> 00:19:34,520
Speaker 3: you see that car it reminds you of maybe how

472
00:19:34,520 --> 00:19:37,120
Speaker 3: you were treated poorly, and a man, I freaking hate.

473
00:19:36,920 --> 00:19:38,840
Speaker 1: That, Like that is the part that really pisses me off.

474
00:19:39,160 --> 00:19:41,080
Speaker 1: But just because you owe more than the car is

475
00:19:41,119 --> 00:19:43,439
Speaker 1: now worth, it doesn't mean that you should look to

476
00:19:43,480 --> 00:19:46,120
Speaker 1: get out of this financial arrangement and into another. And

477
00:19:46,160 --> 00:19:48,359
Speaker 1: in fact, that it's gonna put you even more upside

478
00:19:48,359 --> 00:19:50,359
Speaker 1: down on the next car that you buy. And you

479
00:19:50,560 --> 00:19:52,440
Speaker 1: wouldn't be alone in taking that route. A lot of

480
00:19:52,440 --> 00:19:52,960
Speaker 1: folks do that.

481
00:19:53,000 --> 00:19:54,840
Speaker 3: But if you walked into a dealership, now, if you

482
00:19:54,880 --> 00:19:57,639
Speaker 3: try to trade in that car at a meaningful loss

483
00:19:58,200 --> 00:20:00,520
Speaker 3: with a desire to roll that loan into the loan

484
00:20:00,920 --> 00:20:02,840
Speaker 3: on a new car or even a gently used car,

485
00:20:03,119 --> 00:20:05,439
Speaker 3: you're likely going to have to pay an even higher

486
00:20:05,480 --> 00:20:08,000
Speaker 3: interest rate. Your payment would increase, and the length of

487
00:20:08,040 --> 00:20:10,959
Speaker 3: your loan would increase as well, Like every single one

488
00:20:11,000 --> 00:20:13,879
Speaker 3: of those things would set you back from a financial standpoint,

489
00:20:13,920 --> 00:20:16,920
Speaker 3: and it again, we're just so sorry to Yeah, I

490
00:20:16,960 --> 00:20:18,320
Speaker 3: feel like we're just the bearers of bad news.

491
00:20:18,400 --> 00:20:19,840
Speaker 1: Well, and you take it in there and guess what

492
00:20:19,880 --> 00:20:22,280
Speaker 1: the dealer is all likely going to be Like, cool,

493
00:20:22,320 --> 00:20:23,840
Speaker 1: you said it was over sixteen, I think it's worth

494
00:20:23,880 --> 00:20:26,760
Speaker 1: twelve according to Kelly Bluebook and trading values and stuff

495
00:20:26,760 --> 00:20:28,879
Speaker 1: like that, the dealership is not going to pay you

496
00:20:28,920 --> 00:20:30,760
Speaker 1: as much as the car is actually worth. And so

497
00:20:31,080 --> 00:20:34,360
Speaker 1: it just you're compounding a bad situation instead of solving it.

498
00:20:34,600 --> 00:20:37,679
Speaker 1: You're actually like going further and deeper into.

499
00:20:37,480 --> 00:20:38,240
Speaker 2: A financial hole.

500
00:20:38,280 --> 00:20:40,400
Speaker 1: And so we actually we want you out of car debt.

501
00:20:40,480 --> 00:20:43,040
Speaker 1: The sooner the better. That's the goal. And again it's

502
00:20:43,040 --> 00:20:45,280
Speaker 1: harder to do that if you're changing rides, you're taking

503
00:20:45,280 --> 00:20:47,920
Speaker 1: out longer loans for more money. So depending on how

504
00:20:47,960 --> 00:20:50,399
Speaker 1: long ago you finalize this purchase, though, I would say

505
00:20:50,440 --> 00:20:52,800
Speaker 1: you might actually want to go right back to that

506
00:20:52,840 --> 00:20:55,119
Speaker 1: dealership and talk to a manager about how you were

507
00:20:55,160 --> 00:20:56,560
Speaker 1: treated and the additional.

508
00:20:56,160 --> 00:20:57,080
Speaker 2: Fees you were saddled with.

509
00:20:57,400 --> 00:21:00,360
Speaker 1: This is you don't necessarily have legal recourse. They don't

510
00:21:00,359 --> 00:21:03,040
Speaker 1: have any legal obligation to do anything for you. And

511
00:21:03,200 --> 00:21:06,439
Speaker 1: basically every state it's kind of like, hey, you bought it,

512
00:21:06,520 --> 00:21:08,280
Speaker 1: you made the purchase, You made the purchase, and like

513
00:21:08,320 --> 00:21:11,760
Speaker 1: there's no recourse, there's no return policy. And the only

514
00:21:11,800 --> 00:21:13,760
Speaker 1: exception that I know of is like Carbona and Carmacks

515
00:21:13,800 --> 00:21:15,640
Speaker 1: who have their own. But even then it's not some

516
00:21:15,680 --> 00:21:18,480
Speaker 1: sort of like legal state law or a right that

517
00:21:18,560 --> 00:21:20,880
Speaker 1: you have. It's just their policies, just how they roll.

518
00:21:20,960 --> 00:21:21,160
Speaker 2: Yeah.

519
00:21:21,200 --> 00:21:23,080
Speaker 1: And so what I would say though, is a face

520
00:21:23,080 --> 00:21:25,800
Speaker 1: to face appeal could get you some sort of concession, right,

521
00:21:25,840 --> 00:21:29,359
Speaker 1: It's at least worth trying to have that conversation. And

522
00:21:29,359 --> 00:21:31,320
Speaker 1: I would say, don't go in there huff and puff

523
00:21:31,359 --> 00:21:33,439
Speaker 1: and mad, but say, hey, listen, I was told the

524
00:21:33,440 --> 00:21:36,080
Speaker 1: price was this. I didn't realize until after the fact

525
00:21:36,400 --> 00:21:38,679
Speaker 1: that all of these fees have been included. This is

526
00:21:38,680 --> 00:21:40,840
Speaker 1: pretty frustrating. Is there anything that we can do to

527
00:21:40,920 --> 00:21:42,440
Speaker 1: kind of help me claw back some of that cash

528
00:21:42,480 --> 00:21:45,239
Speaker 1: that I wasn't expecting to spend? And I will say this,

529
00:21:45,320 --> 00:21:48,040
Speaker 1: if they laugh in your face or if they say

530
00:21:48,080 --> 00:21:51,119
Speaker 1: no way, Jose, you can even look up picketing laws

531
00:21:51,160 --> 00:21:52,720
Speaker 1: in your state, and that might be a good tactic

532
00:21:52,760 --> 00:21:55,080
Speaker 1: to get tactic to get them to take some action.

533
00:21:55,160 --> 00:21:57,040
Speaker 1: If you're legally picketing in front of their business on

534
00:21:57,080 --> 00:21:58,800
Speaker 1: a Saturday on one of the busiest days of the week,

535
00:21:59,040 --> 00:22:03,480
Speaker 1: they might say, Alexandro, we will We'll work with you. Okay, Well,

536
00:22:03,560 --> 00:22:05,119
Speaker 1: guess what, We'll give you two thousand bucks back And

537
00:22:05,160 --> 00:22:06,880
Speaker 1: you might say, great, Okay, that's real.

538
00:22:06,960 --> 00:22:07,560
Speaker 2: I would take that.

539
00:22:07,720 --> 00:22:09,320
Speaker 1: But that because you could be costing them a lot

540
00:22:09,320 --> 00:22:12,000
Speaker 1: of business on especially on a weekend by doing something.

541
00:22:12,119 --> 00:22:14,080
Speaker 1: As long as you're doing it legally and above board

542
00:22:14,400 --> 00:22:16,560
Speaker 1: and not defaming them in the process, you might be

543
00:22:16,600 --> 00:22:18,440
Speaker 1: able to see some action that you otherwise wouldn't get.

544
00:22:18,560 --> 00:22:18,720
Speaker 2: Yeah.

545
00:22:18,760 --> 00:22:21,040
Speaker 3: Yeah, it might even be worth reporting to the Better

546
00:22:21,080 --> 00:22:22,840
Speaker 3: Business Bureau. It might be worth checking with your state

547
00:22:22,880 --> 00:22:26,119
Speaker 3: Attorney General's office as well. And is that guarantee to

548
00:22:26,359 --> 00:22:28,919
Speaker 3: help you to get justice? Probably not, But honestly, like,

549
00:22:28,960 --> 00:22:31,320
Speaker 3: if enough complaints are filed, I mean that's going to

550
00:22:31,359 --> 00:22:33,199
Speaker 3: tip off other consumers in the future.

551
00:22:33,640 --> 00:22:35,760
Speaker 2: And I think Google too, I would leave at Google

552
00:22:35,760 --> 00:22:36,360
Speaker 2: willview sure.

553
00:22:36,400 --> 00:22:38,479
Speaker 3: Yeah, Like we were trying to churn some of your

554
00:22:38,520 --> 00:22:41,000
Speaker 3: frustration in your anger, Like we're trying to channel that

555
00:22:41,040 --> 00:22:44,159
Speaker 3: into a like I guess, more productive direction. Uh. And

556
00:22:44,200 --> 00:22:46,120
Speaker 3: by the way, one thing that you might be able

557
00:22:46,200 --> 00:22:49,280
Speaker 3: to do is to refinance this loan with a credit

558
00:22:49,359 --> 00:22:51,439
Speaker 3: union at a lower rate, depending on what your rate is,

559
00:22:52,200 --> 00:22:54,560
Speaker 3: and that's obviously going to help to lower those payments.

560
00:22:54,960 --> 00:22:56,080
Speaker 2: So yeah, keep that in mind.

561
00:22:56,080 --> 00:22:58,280
Speaker 3: But from here on out, and just to all of

562
00:22:58,600 --> 00:23:00,560
Speaker 3: the how to money listeners out there, just be so

563
00:23:00,640 --> 00:23:04,280
Speaker 3: careful when you are buying a car. Again, second to

564
00:23:04,760 --> 00:23:07,600
Speaker 3: your house, it's the most expensive purchase, but don't think

565
00:23:07,600 --> 00:23:10,120
Speaker 3: of it as something that's going to go up in value.

566
00:23:10,160 --> 00:23:13,560
Speaker 3: It's very different in that way. But Alexandra, just remember

567
00:23:13,680 --> 00:23:16,640
Speaker 3: the longer you keep this car, the less egregious those

568
00:23:16,680 --> 00:23:19,199
Speaker 3: extra charges are going to feel. And again, we're so

569
00:23:19,240 --> 00:23:21,000
Speaker 3: sorry this happened, but we yeah, we wish you the

570
00:23:21,000 --> 00:23:22,440
Speaker 3: best of luck and let us know how else we

571
00:23:22,520 --> 00:23:23,480
Speaker 3: might be able to help.

572
00:23:23,280 --> 00:23:23,840
Speaker 2: You in the future.

573
00:23:23,920 --> 00:23:27,679
Speaker 1: Yeah, and this is a crumecue. You're making lemonade out

574
00:23:27,680 --> 00:23:29,879
Speaker 1: of lemons here, right. There is no sort of like,

575
00:23:30,080 --> 00:23:32,600
Speaker 1: oh like going back to the day before you bought

576
00:23:32,600 --> 00:23:35,320
Speaker 1: the car. There's no way to kind of eradicate this decision.

577
00:23:35,359 --> 00:23:37,800
Speaker 1: But there are ways, I think to mitigate the negative

578
00:23:37,840 --> 00:23:41,959
Speaker 1: downsides of this decision in a way that hopefully you

579
00:23:41,960 --> 00:23:44,760
Speaker 1: can stomach while also sticking up for yourself. All right, Matt,

580
00:23:44,800 --> 00:23:46,600
Speaker 1: let's get to our next question. This one is kind

581
00:23:46,600 --> 00:23:49,080
Speaker 1: of a nerdy one about how much money you can

582
00:23:49,280 --> 00:23:51,160
Speaker 1: take out of your accounts once you hit retirement.

583
00:23:51,400 --> 00:23:54,080
Speaker 6: Hi, guys, it's scott and Florida. My question is about

584
00:23:54,080 --> 00:23:56,560
Speaker 6: the four percent rule for ROTH and four H three

585
00:23:56,640 --> 00:24:00,800
Speaker 6: B withdrawals. I'm getting fairly close to retirement, maybe in

586
00:24:00,840 --> 00:24:04,160
Speaker 6: about five years, and trying to calculate my retirement income.

587
00:24:04,760 --> 00:24:08,119
Speaker 6: I will have two pensions covering about forty to fifty

588
00:24:08,160 --> 00:24:13,119
Speaker 6: percent of my current income plus social Security, and I

589
00:24:13,200 --> 00:24:16,800
Speaker 6: have the four H three B and ROTH IRA. It

590
00:24:16,840 --> 00:24:22,120
Speaker 6: seems like withdrawing four percent is too conservative, especially considering

591
00:24:22,240 --> 00:24:25,000
Speaker 6: I have the pensions and social Security to fall back on.

592
00:24:25,840 --> 00:24:28,320
Speaker 6: If I'm able to earn five percent or more of

593
00:24:28,320 --> 00:24:33,840
Speaker 6: my money than wouldn't my accounts last in perpetuity? Well

594
00:24:33,880 --> 00:24:36,520
Speaker 6: that isn't a bad thing. I'd rather take out more

595
00:24:36,560 --> 00:24:39,359
Speaker 6: money when I'm healthy and can enjoy it, So why

596
00:24:39,400 --> 00:24:42,320
Speaker 6: not take out six or seven or maybe even more

597
00:24:42,800 --> 00:24:48,480
Speaker 6: percent in my situation? Then I could live unless through

598
00:24:48,520 --> 00:24:52,400
Speaker 6: the pensions later on. Thanks for your help.

599
00:24:52,920 --> 00:24:56,800
Speaker 1: Oh, Matt, an incredibly nerdy question about the four percent rule,

600
00:24:57,080 --> 00:24:59,959
Speaker 1: which normally not a lot of people talk about. That's

601
00:25:00,200 --> 00:25:03,760
Speaker 1: really it's reserved for people who have their faces in

602
00:25:03,800 --> 00:25:06,760
Speaker 1: spreadsheets and calculators most of the time, but it is

603
00:25:06,760 --> 00:25:08,879
Speaker 1: served for all the wonks out there, right. But it's

604
00:25:08,920 --> 00:25:11,800
Speaker 1: important to have a discussion because this is something that

605
00:25:11,840 --> 00:25:13,520
Speaker 1: comes up. This is something that even as you're kind

606
00:25:13,520 --> 00:25:15,720
Speaker 1: of investing for your future, you need to be thinking about.

607
00:25:15,960 --> 00:25:19,280
Speaker 1: But also, especially in Scott's cases, you're getting closer to

608
00:25:19,320 --> 00:25:21,720
Speaker 1: tapping those funds. Well, how much can I feel comfortable

609
00:25:21,720 --> 00:25:24,600
Speaker 1: taking out? And I feel like this conversation started to

610
00:25:24,640 --> 00:25:28,760
Speaker 1: get a whole lot more mainstream with Dave Ramsey's recent rants.

611
00:25:29,000 --> 00:25:31,720
Speaker 1: Basically he stated that folks can easily take out eight

612
00:25:31,720 --> 00:25:33,960
Speaker 1: percent a year out of their retirement account and never

613
00:25:34,000 --> 00:25:37,359
Speaker 1: run out of money four percent twice that, and so

614
00:25:37,640 --> 00:25:40,159
Speaker 1: that it started to draw more interest from people in

615
00:25:40,600 --> 00:25:43,760
Speaker 1: scrutiny from dare I call them the nerds who spend

616
00:25:43,760 --> 00:25:47,080
Speaker 1: most of their time thinking about safe withdrawal rates And sadly,

617
00:25:47,520 --> 00:25:50,760
Speaker 1: Dave Ramsey's advice it does not hold up to closer scrutiny.

618
00:25:51,160 --> 00:25:53,240
Speaker 1: So can you only take out four percent? Or are

619
00:25:53,280 --> 00:25:56,360
Speaker 1: there other factors you need to consider? Of course, Matt,

620
00:25:56,400 --> 00:25:57,480
Speaker 1: you and I were going to take all of these

621
00:25:57,480 --> 00:26:00,080
Speaker 1: additional factors, right, some sort of gray area stance here,

622
00:26:00,119 --> 00:26:03,000
Speaker 1: And it's not necessarily four, and it's not necessarily eight,

623
00:26:03,440 --> 00:26:05,760
Speaker 1: and it's not necessarily six all the time either. There

624
00:26:05,800 --> 00:26:07,159
Speaker 1: is just a lot of different things you have to

625
00:26:07,200 --> 00:26:09,920
Speaker 1: take into consideration when you're trying to decide how much

626
00:26:09,960 --> 00:26:12,439
Speaker 1: can I take out reasonably from my retirement accounts in

627
00:26:12,440 --> 00:26:15,760
Speaker 1: a giving year without let's say, letting the nest a

628
00:26:15,880 --> 00:26:19,359
Speaker 1: continue to grow exponentially, or without running out of money

629
00:26:19,400 --> 00:26:21,439
Speaker 1: and living on cat food by the time I'm like

630
00:26:21,480 --> 00:26:23,360
Speaker 1: seventy eight. It makes you think of my parents, Matt,

631
00:26:23,359 --> 00:26:27,840
Speaker 1: who recently reached retirement age, and they are taking we've

632
00:26:27,840 --> 00:26:30,640
Speaker 1: talked about taking six to seven percent out in these

633
00:26:30,680 --> 00:26:33,600
Speaker 1: first couple of years. Well, why doesn't that that's crazy,

634
00:26:33,680 --> 00:26:35,840
Speaker 1: that's not the four percent rule? Are they Are they

635
00:26:35,880 --> 00:26:37,639
Speaker 1: going to run out of cash? Well, the goal is

636
00:26:37,680 --> 00:26:40,520
Speaker 1: to dial that back over time, and actually it's bridge

637
00:26:40,560 --> 00:26:43,240
Speaker 1: helping bridge the gap for them to take Social Security

638
00:26:43,280 --> 00:26:47,399
Speaker 1: and get a higher monthly Social Security amount guarantee guaranteed

639
00:26:47,440 --> 00:26:49,360
Speaker 1: in the future. So these are the kind of things

640
00:26:49,359 --> 00:26:52,240
Speaker 1: you have to factor in if you're sixty five and

641
00:26:52,280 --> 00:26:54,480
Speaker 1: you're taking out six or seven percent of your portfolio

642
00:26:54,920 --> 00:26:56,720
Speaker 1: every single year until you hit seventy, so you can

643
00:26:56,720 --> 00:26:58,320
Speaker 1: get the max Social Security and then you can draw

644
00:26:58,359 --> 00:27:00,480
Speaker 1: that back into the four percent range. I mean, I

645
00:27:00,520 --> 00:27:04,200
Speaker 1: think that's smart. I think that's wise, it's prudent, even

646
00:27:04,240 --> 00:27:07,000
Speaker 1: though you know it's not all the four percent work

647
00:27:07,080 --> 00:27:08,880
Speaker 1: necessarily helps you understand all.

648
00:27:08,760 --> 00:27:10,840
Speaker 3: The caveats, sure, And I mean I also get the

649
00:27:10,840 --> 00:27:12,560
Speaker 3: goal of using more of your money while you're just

650
00:27:12,640 --> 00:27:15,639
Speaker 3: healthy and when you have more ability to actually enjoy

651
00:27:15,680 --> 00:27:19,040
Speaker 3: those dollars. I think that's also worth considering, because being

652
00:27:19,119 --> 00:27:21,840
Speaker 3: too conservative is going to come with a real opportunity cost.

653
00:27:21,880 --> 00:27:24,400
Speaker 3: And that's true in retirement. This is a big reason

654
00:27:24,440 --> 00:27:27,119
Speaker 3: why we're not all in on fire. But on the

655
00:27:27,160 --> 00:27:28,520
Speaker 3: other side of the coint I've also talked to some

656
00:27:28,560 --> 00:27:31,800
Speaker 3: retirees who seem to think that the money that they've

657
00:27:31,800 --> 00:27:35,600
Speaker 3: saved up for retirement is fair game when they finally retire,

658
00:27:35,720 --> 00:27:37,920
Speaker 3: Like all of that money, let me.

659
00:27:37,920 --> 00:27:39,880
Speaker 1: Like just break this piggybank wide open at the age

660
00:27:39,880 --> 00:27:40,520
Speaker 1: of sixty five.

661
00:27:40,600 --> 00:27:41,840
Speaker 2: That's not how you want to approach it.

662
00:27:41,880 --> 00:27:44,000
Speaker 1: Like you've got a beending like there's no tomorrow. You've

663
00:27:44,000 --> 00:27:46,520
Speaker 1: got a plan, but a long term as well, thirty

664
00:27:46,600 --> 00:27:47,400
Speaker 1: years of tomorrow's.

665
00:27:47,520 --> 00:27:49,840
Speaker 3: Yeah, Scott, it sounds like you've got other sources of

666
00:27:49,840 --> 00:27:52,879
Speaker 3: income that can fund a lot of these monthly expenses

667
00:27:52,920 --> 00:27:56,480
Speaker 3: with the pension, with Social Security, and you're a retirement

668
00:27:56,480 --> 00:27:58,879
Speaker 3: nest egg. It likely isn't just gravy on top of

669
00:27:59,000 --> 00:28:01,520
Speaker 3: I think at least some of it. And if that's

670
00:28:01,560 --> 00:28:03,399
Speaker 3: the case, I think it's okay to treat some of

671
00:28:03,440 --> 00:28:05,440
Speaker 3: it like that. Treat some of it like the icing

672
00:28:05,440 --> 00:28:07,800
Speaker 3: on top like the gravy, which means increasing some of

673
00:28:07,800 --> 00:28:10,359
Speaker 3: your withdrawals. I think it means spending in those first

674
00:28:10,359 --> 00:28:14,760
Speaker 3: few years of retirement. It means not living the yellow life,

675
00:28:14,800 --> 00:28:18,320
Speaker 3: but simultaneously holding that intention with knowing that we're not

676
00:28:18,359 --> 00:28:23,119
Speaker 3: necessarily guaranteed tomorrow. It's a fine balance to find and

677
00:28:23,160 --> 00:28:24,719
Speaker 3: I think we all kind of find it in our

678
00:28:24,760 --> 00:28:25,240
Speaker 3: own way.

679
00:28:25,400 --> 00:28:25,960
Speaker 2: Yep. Yeah.

680
00:28:26,040 --> 00:28:29,640
Speaker 1: And I feel like there's a decent chunk of Americans,

681
00:28:29,640 --> 00:28:31,640
Speaker 1: Matt where they just haven't saved very much at all.

682
00:28:31,720 --> 00:28:34,080
Speaker 1: They're not in a good position when it comes to retirement,

683
00:28:34,359 --> 00:28:36,720
Speaker 1: and they're like, how can I make this last for

684
00:28:36,760 --> 00:28:39,280
Speaker 1: thirty years because I need it to last. But Scott's

685
00:28:39,320 --> 00:28:41,880
Speaker 1: in a different position. He set himself up much differently,

686
00:28:41,920 --> 00:28:43,480
Speaker 1: and he's on the other side of the coin where

687
00:28:43,480 --> 00:28:47,080
Speaker 1: I think he runs into the mental roadblock of being

688
00:28:47,120 --> 00:28:49,800
Speaker 1: able to feel like he can draw down from those

689
00:28:49,800 --> 00:28:52,400
Speaker 1: on So it's a different It's a psychological hurdle that

690
00:28:52,440 --> 00:28:54,840
Speaker 1: people have to overcome when they reach retirement, Like, absolutely,

691
00:28:54,840 --> 00:28:56,400
Speaker 1: how can I feel comfortable drawing down on this nest

692
00:28:56,440 --> 00:28:57,960
Speaker 1: egg that it took me thirty plus years to build.

693
00:28:58,080 --> 00:29:00,000
Speaker 1: It's like starting to remove those bricks from a building

694
00:29:00,000 --> 00:29:01,160
Speaker 1: that you're building, and you're like, what are we doing?

695
00:29:01,200 --> 00:29:03,600
Speaker 1: We're moving in the opposite direction, But that's the whole goal.

696
00:29:03,680 --> 00:29:05,720
Speaker 1: You're supposed to be moving in the opposite direction. You're

697
00:29:05,720 --> 00:29:07,840
Speaker 1: supposed to be enjoying those dollars. You built them up

698
00:29:07,880 --> 00:29:09,320
Speaker 1: for a purpose, Now it's time to use them.

699
00:29:09,360 --> 00:29:09,800
Speaker 2: Absolutely.

700
00:29:09,880 --> 00:29:12,080
Speaker 3: Yeah, that's a part of where I think it might

701
00:29:12,080 --> 00:29:14,640
Speaker 3: make sense to reach out to a financial planner about

702
00:29:14,800 --> 00:29:17,200
Speaker 3: when and how to withdraw those funds, because on our

703
00:29:17,240 --> 00:29:19,640
Speaker 3: own it can feel like a daunting task, I think,

704
00:29:20,000 --> 00:29:22,480
Speaker 3: But when you've got somebody there who has they've run

705
00:29:22,520 --> 00:29:25,040
Speaker 3: some scenarios, right, they've got some models to point to.

706
00:29:25,400 --> 00:29:27,080
Speaker 3: I think that can help you to see that the

707
00:29:27,200 --> 00:29:29,480
Speaker 3: numbers are in black and white, and I think that

708
00:29:29,520 --> 00:29:32,000
Speaker 3: for folks who do rely on the data, that can

709
00:29:32,040 --> 00:29:33,640
Speaker 3: really help. But I think a financial advisor one of

710
00:29:33,680 --> 00:29:35,880
Speaker 3: the other benefits that they're able to provide you is

711
00:29:36,040 --> 00:29:38,520
Speaker 3: sort of, like you said, the mental or the emotional,

712
00:29:38,560 --> 00:29:41,880
Speaker 3: the psychological roadblock that you get to when you've been

713
00:29:42,080 --> 00:29:45,160
Speaker 3: building wealth your entire life. You've gotten really good at that.

714
00:29:45,520 --> 00:29:47,600
Speaker 3: It makes me think of like flipping the switch on

715
00:29:47,640 --> 00:29:49,480
Speaker 3: the fan, like in the winter time. You're supposed to

716
00:29:49,520 --> 00:29:52,360
Speaker 3: do that to recirculate the warm air down or something

717
00:29:52,400 --> 00:29:54,760
Speaker 3: like that. It's something that you've never done though, Like

718
00:29:54,800 --> 00:29:57,080
Speaker 3: this is a switch you've never flipped. And I think

719
00:29:57,120 --> 00:29:59,280
Speaker 3: one of the other benefits that a financial planner can

720
00:29:59,440 --> 00:30:02,400
Speaker 3: bring to the table is to help kind of walk

721
00:30:02,440 --> 00:30:04,440
Speaker 3: you through this. They can kind of help coach you.

722
00:30:04,440 --> 00:30:05,920
Speaker 3: Because it's one thing to know what it is that

723
00:30:05,960 --> 00:30:08,800
Speaker 3: you're supposed to do. I think it's an entirely different

724
00:30:08,840 --> 00:30:11,520
Speaker 3: ballgame to actually pull the trigger take some of the

725
00:30:11,560 --> 00:30:14,920
Speaker 3: steps in drawing down on your retirement. And that's where

726
00:30:14,960 --> 00:30:18,560
Speaker 3: I think we talked last week with Charles Douhig about

727
00:30:18,560 --> 00:30:21,520
Speaker 3: supercommunicators and how like he gave the example of the doctor,

728
00:30:21,600 --> 00:30:23,160
Speaker 3: the cancer doctor.

729
00:30:23,000 --> 00:30:25,479
Speaker 1: And oh have a bedside manner had a massive impact

730
00:30:25,520 --> 00:30:26,440
Speaker 1: on Yeah, and.

731
00:30:26,840 --> 00:30:30,160
Speaker 3: That is about is listening to whoever it is. In

732
00:30:30,200 --> 00:30:32,800
Speaker 3: this case, at least they're a retiree. But hopefully a

733
00:30:32,800 --> 00:30:35,320
Speaker 3: financial advisor that you meet with Scott can be somebody

734
00:30:35,360 --> 00:30:37,640
Speaker 3: who hears sort of the questions that you're asking and

735
00:30:37,680 --> 00:30:40,720
Speaker 3: if you do have more of a psychological barrier to

736
00:30:41,280 --> 00:30:44,560
Speaker 3: actually executing this plan, they can help you to realize that, like, hey, look,

737
00:30:45,360 --> 00:30:47,280
Speaker 3: it's definitely about the numbers, but then beyond that, let's

738
00:30:47,280 --> 00:30:50,600
Speaker 3: talk about what it is that's keeping you from feeling

739
00:30:50,640 --> 00:30:52,960
Speaker 3: comfortable with spending some of this money that you've built up.

740
00:30:53,000 --> 00:30:55,720
Speaker 3: I think that's certainly one of the additional, perhaps even

741
00:30:55,800 --> 00:30:57,840
Speaker 3: unspoken benefits that a financial planner can bring you.

742
00:30:57,920 --> 00:30:59,320
Speaker 1: Yeah, and then I think there are actually nuts in

743
00:30:59,320 --> 00:31:01,520
Speaker 1: bolts ways that ainancial planner could potentially help paying for.

744
00:31:01,560 --> 00:31:04,120
Speaker 1: Hourly advice could be just provide a lot of peace

745
00:31:04,120 --> 00:31:05,960
Speaker 1: of mind, but it could also provide some of the

746
00:31:06,760 --> 00:31:10,480
Speaker 1: actual rubber meets the road financial planning advice that could

747
00:31:10,480 --> 00:31:14,320
Speaker 1: be really helpful, like whether immediate annuity or something like

748
00:31:14,360 --> 00:31:16,240
Speaker 1: that might be a smart choice for at least a

749
00:31:16,240 --> 00:31:18,920
Speaker 1: portion of those funds offering more of a predictable stream

750
00:31:18,920 --> 00:31:20,760
Speaker 1: of income. You've already got the pension in Social Security,

751
00:31:20,920 --> 00:31:24,680
Speaker 1: but do you want more predictability even than you currently

752
00:31:24,720 --> 00:31:28,280
Speaker 1: have while still allowing yourself market exposure. You always want

753
00:31:28,320 --> 00:31:31,040
Speaker 1: to still have market exposure, I think, the whole way

754
00:31:31,080 --> 00:31:33,800
Speaker 1: through retirement, but taking some chips off the table in

755
00:31:33,840 --> 00:31:36,440
Speaker 1: that regard being a little less risky in your investments

756
00:31:36,680 --> 00:31:38,920
Speaker 1: could make sense. And so another thing you might also

757
00:31:38,920 --> 00:31:40,760
Speaker 1: want to consider, something like long term care insurance, but

758
00:31:40,800 --> 00:31:44,280
Speaker 1: that depends on your overall net worth and specific financial situation.

759
00:31:44,400 --> 00:31:47,920
Speaker 1: Taxes are another consideration, right, And if you're holding off

760
00:31:47,960 --> 00:31:50,600
Speaker 1: on taking Social Security to increase that monthly payout, that's

761
00:31:50,680 --> 00:31:53,520
Speaker 1: another check mark in using more of your retirement dollars now,

762
00:31:53,600 --> 00:31:55,680
Speaker 1: kind of like I talked about with my folks, But

763
00:31:55,720 --> 00:31:58,280
Speaker 1: those are all questions worth asking. And just to kind

764
00:31:58,280 --> 00:32:00,160
Speaker 1: of take it back to the four percent thing, it

765
00:32:00,240 --> 00:32:02,520
Speaker 1: is a good rule of thumb. I don't think it's

766
00:32:02,560 --> 00:32:05,160
Speaker 1: this hard and fast rule five to six, even seven

767
00:32:05,200 --> 00:32:07,600
Speaker 1: percent of your portfolio taking that out in some given

768
00:32:07,640 --> 00:32:10,120
Speaker 1: years as long as you're willing to maintain some flexibility

769
00:32:10,440 --> 00:32:12,560
Speaker 1: and willing to cut back. Let's say if the market

770
00:32:12,880 --> 00:32:15,200
Speaker 1: has a downturn, or if you just have enough you know,

771
00:32:15,360 --> 00:32:18,120
Speaker 1: steady stream of income from other places coming in that. Yeah,

772
00:32:18,240 --> 00:32:20,200
Speaker 1: being able to pivot on that, you know, at a

773
00:32:20,200 --> 00:32:21,720
Speaker 1: moment's notice, isn't that big of a deal.

774
00:32:21,760 --> 00:32:24,320
Speaker 3: I think the flight it's so key what you said flexibility,

775
00:32:24,320 --> 00:32:27,560
Speaker 3: because not only when it comes to flexibility with your spending,

776
00:32:27,920 --> 00:32:29,880
Speaker 3: but also in what it is that you're earning.

777
00:32:29,880 --> 00:32:32,800
Speaker 1: Because you might say, oh, shoot, the market's really down.

778
00:32:32,880 --> 00:32:34,320
Speaker 1: It has been down for the past five years. I

779
00:32:34,360 --> 00:32:36,360
Speaker 1: don't know what the future is that could actually happen.

780
00:32:36,520 --> 00:32:38,200
Speaker 1: Were that to be the case, you might actually find

781
00:32:38,240 --> 00:32:40,680
Speaker 1: yourself getting back in the workforce, maybe not at the

782
00:32:41,000 --> 00:32:44,320
Speaker 1: full time job, high stress environment perhaps that you're in,

783
00:32:44,720 --> 00:32:47,400
Speaker 1: but enough to help pad out that retirement. Those retirement

784
00:32:47,400 --> 00:32:49,080
Speaker 1: acounts to where you have some money to cover your

785
00:32:49,160 --> 00:32:51,320
Speaker 1: yearly expenses. And that's what it means, I think, to

786
00:32:51,360 --> 00:32:53,880
Speaker 1: also be flexible when it comes to the money that

787
00:32:53,920 --> 00:32:55,960
Speaker 1: you are earning, not just the money that you're spending. Yeah,

788
00:32:55,960 --> 00:32:57,920
Speaker 1: So hopefully that gives you an understanding. Like the four

789
00:32:57,920 --> 00:33:00,200
Speaker 1: percent rule I think is a good guiding life. But

790
00:33:00,200 --> 00:33:02,160
Speaker 1: then there's a whole lot of wiggle room inside of that.

791
00:33:02,560 --> 00:33:05,920
Speaker 1: And I think you're definitely in the position, Scott, where

792
00:33:06,080 --> 00:33:07,920
Speaker 1: you can take out more of that given kind of

793
00:33:07,960 --> 00:33:10,480
Speaker 1: the rest of your overall financial situation, and you don't

794
00:33:10,480 --> 00:33:11,240
Speaker 1: need to fret about it.

795
00:33:11,240 --> 00:33:12,160
Speaker 2: You don't need to freak out.

796
00:33:12,320 --> 00:33:14,120
Speaker 1: And I will say, meeting with that financial advisor Matt

797
00:33:14,120 --> 00:33:16,080
Speaker 1: we talked about that could be helpful, but also beware

798
00:33:16,080 --> 00:33:18,440
Speaker 1: that they might opt to They might say that you

799
00:33:18,520 --> 00:33:20,480
Speaker 1: need to be more conservative. But I think sometimes that's

800
00:33:20,840 --> 00:33:22,719
Speaker 1: the trend, is to say, oh no, no, no, you need

801
00:33:22,760 --> 00:33:25,200
Speaker 1: to have more access the four percent rules set in stone,

802
00:33:25,400 --> 00:33:27,560
Speaker 1: but it's not and I think you there is more

803
00:33:27,600 --> 00:33:29,120
Speaker 1: wiggle room in it. While you might not want to

804
00:33:29,160 --> 00:33:31,840
Speaker 1: go Dave Ramsey level, like somewhere in between, it might

805
00:33:31,880 --> 00:33:33,840
Speaker 1: be where you want to settle. But we've got more

806
00:33:33,960 --> 00:33:36,320
Speaker 1: questions to get to on this episode, including we'll talk

807
00:33:36,360 --> 00:33:38,240
Speaker 1: about balance transfer cards when those make sense.

808
00:33:38,280 --> 00:33:39,440
Speaker 2: We'll get to that right after this.

809
00:33:47,720 --> 00:33:50,360
Speaker 3: Oh right, we're back for the break and we're actually

810
00:33:50,360 --> 00:33:52,520
Speaker 3: going to hear him. Gabe mentioned that because he doesn't

811
00:33:52,520 --> 00:33:54,320
Speaker 3: say his name and his recording, Shame on you, Gabe,

812
00:33:54,320 --> 00:33:56,760
Speaker 3: come on Gabe totally.

813
00:33:56,400 --> 00:33:59,280
Speaker 2: Fine, that's the rules man. He has a question about

814
00:33:59,320 --> 00:34:01,080
Speaker 2: the Health Savings account.

815
00:34:01,240 --> 00:34:04,400
Speaker 7: Hey guys, I have a question about our favorite investing vehicle,

816
00:34:04,480 --> 00:34:08,120
Speaker 7: the HSA. But first, here's a quick background about myself.

817
00:34:08,320 --> 00:34:10,759
Speaker 7: My wife and I live in Cincinnai, Ohio. We're twenty

818
00:34:10,840 --> 00:34:13,480
Speaker 7: eight years old and we're nowhere near retirement, but we

819
00:34:13,560 --> 00:34:15,200
Speaker 7: have gotten off to a good start over the last

820
00:34:15,239 --> 00:34:17,480
Speaker 7: few years, in part thanks to advice from your show.

821
00:34:18,080 --> 00:34:21,040
Speaker 7: We've been diligently contributing to our tops advantage accounts and

822
00:34:21,080 --> 00:34:23,960
Speaker 7: we're starting to see our investments grow. My wife was

823
00:34:24,000 --> 00:34:25,680
Speaker 7: talking to a co worker the other day who was

824
00:34:25,719 --> 00:34:27,880
Speaker 7: retiring early, and they said they were going to use

825
00:34:27,920 --> 00:34:30,480
Speaker 7: their HSA funds to cover the cost of their insurance

826
00:34:30,480 --> 00:34:33,080
Speaker 7: premium till they were able to sign up for Medicare.

827
00:34:33,880 --> 00:34:36,759
Speaker 7: My question is, can you use your HSA to cover

828
00:34:36,840 --> 00:34:40,680
Speaker 7: insurance premiums in this case or any other case? It

829
00:34:40,719 --> 00:34:42,720
Speaker 7: almost sounds too good to be true, and I couldn't

830
00:34:42,760 --> 00:34:46,200
Speaker 7: find anything that could clearly answer my question online. Does

831
00:34:46,200 --> 00:34:48,840
Speaker 7: it differ state by state or are there any other factors?

832
00:34:49,080 --> 00:34:50,799
Speaker 7: Thanks in advance for your advice.

833
00:34:50,680 --> 00:34:53,520
Speaker 1: Oh Matt, I love that Gabe calls it our favorite

834
00:34:53,520 --> 00:34:57,279
Speaker 1: retirement account like his in yours and mind, and it's

835
00:34:57,320 --> 00:34:57,720
Speaker 1: so good.

836
00:34:57,800 --> 00:34:59,279
Speaker 2: It's so good, I think. Yeah, oh, I.

837
00:34:59,239 --> 00:35:01,640
Speaker 1: Thought he was referring to the Royal Hour like us too.

838
00:35:01,719 --> 00:35:03,440
Speaker 1: Oh yeah, I'm saying everybody, all of.

839
00:35:03,440 --> 00:35:05,080
Speaker 2: Us are included in that. We all love the HSA.

840
00:35:05,160 --> 00:35:05,640
Speaker 2: And he's right.

841
00:35:05,760 --> 00:35:06,120
Speaker 6: We love it.

842
00:35:06,239 --> 00:35:07,040
Speaker 2: Yes, of course we do.

843
00:35:07,120 --> 00:35:09,319
Speaker 1: And if you use it properly, it can make a

844
00:35:09,400 --> 00:35:14,000
Speaker 1: massive impact on your ability to invest with fewer tax

845
00:35:14,040 --> 00:35:16,640
Speaker 1: consequences for your future. And sadly, Matt, you and I

846
00:35:16,680 --> 00:35:19,000
Speaker 1: we have been unable to contribute to an HSA for

847
00:35:19,040 --> 00:35:21,520
Speaker 1: a long time. We don't have a high deductible health

848
00:35:21,520 --> 00:35:24,080
Speaker 1: care plan offer to us. Nope, through our employer because

849
00:35:24,120 --> 00:35:25,759
Speaker 1: we are our employer. We're too cheap to do that.

850
00:35:27,000 --> 00:35:29,919
Speaker 1: Frugaler cheap, Joel frigular cheap. Yeah, it wouldn't be worth

851
00:35:29,920 --> 00:35:31,759
Speaker 1: the cost in order to give us.

852
00:35:31,840 --> 00:35:33,920
Speaker 3: Give ourselves access to this seems like it's a frugal

853
00:35:34,239 --> 00:35:36,600
Speaker 3: It's even though when folks hear us say we don't

854
00:35:36,600 --> 00:35:39,960
Speaker 3: have health insurance? What, well, what are you guys thinking? Well,

855
00:35:40,560 --> 00:35:42,480
Speaker 3: we still also think that it's a frugal move. Maybe

856
00:35:42,520 --> 00:35:43,240
Speaker 3: what we'll talk about.

857
00:35:43,040 --> 00:35:45,359
Speaker 1: This more health sharing companies. We are covered in some way,

858
00:35:45,400 --> 00:35:48,120
Speaker 1: we're not completely. That was bait for somebody to hear

859
00:35:48,160 --> 00:35:49,799
Speaker 1: that and say, what do you guys doing. I heard

860
00:35:49,840 --> 00:35:51,719
Speaker 1: you mentioned in the last episode. We basically have the

861
00:35:51,719 --> 00:35:55,359
Speaker 1: equivalent of a healthcare loin cloth. It's not quite full

862
00:35:55,400 --> 00:35:58,279
Speaker 1: body armor. But yes, it takes more effort to make

863
00:35:58,400 --> 00:36:01,120
Speaker 1: that HSA work properly for your future. But if you,

864
00:36:01,280 --> 00:36:02,560
Speaker 1: like you said, if you jump through the hoops, you

865
00:36:02,600 --> 00:36:04,800
Speaker 1: keep the proper records. It's a top account out there.

866
00:36:04,960 --> 00:36:06,680
Speaker 1: It's pretty awesome. We'll actually link to an article that

867
00:36:06,719 --> 00:36:08,319
Speaker 1: tells you, like all the details of how to use

868
00:36:08,320 --> 00:36:12,600
Speaker 1: an HSA properly if you have access to one. And Matt,

869
00:36:12,640 --> 00:36:14,960
Speaker 1: so many people have one. Maybe they put money in one,

870
00:36:15,120 --> 00:36:17,359
Speaker 1: but they don't use it to their maximum advantage. And

871
00:36:17,520 --> 00:36:19,880
Speaker 1: Game asked this question about using it to pay for premiums.

872
00:36:20,080 --> 00:36:21,920
Speaker 1: If you could use it to pay for premiums down

873
00:36:21,960 --> 00:36:24,280
Speaker 1: the road, that would make this account even more powerful.

874
00:36:24,520 --> 00:36:25,759
Speaker 1: But unfortunately you can't.

875
00:36:25,840 --> 00:36:28,080
Speaker 2: That's not right. That's one of the exceptions is not allowed.

876
00:36:28,160 --> 00:36:28,600
Speaker 2: No can do.

877
00:36:29,040 --> 00:36:31,560
Speaker 3: But what you can do, what you can use those

878
00:36:31,719 --> 00:36:35,040
Speaker 3: HSA funds to pay for is cobra. If you lose

879
00:36:35,040 --> 00:36:38,360
Speaker 3: your job. But because Cobra can be incredibly expensive, the

880
00:36:38,680 --> 00:36:40,319
Speaker 3: you might not want to do that.

881
00:36:40,760 --> 00:36:41,560
Speaker 2: Cobra's crazy.

882
00:36:41,719 --> 00:36:44,440
Speaker 1: Have you ever had Cobra? I did sit between when

883
00:36:44,440 --> 00:36:46,520
Speaker 1: I got laid off, I was on Cobra. But the

884
00:36:46,600 --> 00:36:48,840
Speaker 1: cool thing is it was during well I don't know

885
00:36:48,920 --> 00:36:50,600
Speaker 1: it's cool or not, but it was during the pandemic

886
00:36:50,640 --> 00:36:53,960
Speaker 1: when the government soak up the tab for most of

887
00:36:53,960 --> 00:36:54,520
Speaker 1: those months.

888
00:36:54,560 --> 00:36:55,479
Speaker 2: That's true. That's true.

889
00:36:55,520 --> 00:36:58,440
Speaker 3: So I remember pricing out Cobra. I think with my like,

890
00:36:58,440 --> 00:37:01,000
Speaker 3: back when I had a real job, otherwise I would

891
00:37:01,000 --> 00:37:03,000
Speaker 3: not have had Gobra. Yes, yeah, this is this is

892
00:37:03,040 --> 00:37:04,680
Speaker 3: the most real job I've ever had, Joel. But back

893
00:37:04,680 --> 00:37:06,040
Speaker 3: when I had like a normal when I was working

894
00:37:06,040 --> 00:37:08,480
Speaker 3: for an ad agency and I was quitting to start

895
00:37:08,520 --> 00:37:10,840
Speaker 3: my own gig with Kate, I remember talking to the

896
00:37:11,000 --> 00:37:13,160
Speaker 3: HR manager and she's like all right, she was helping

897
00:37:13,160 --> 00:37:15,040
Speaker 3: me out, and she's like, here are the different options

898
00:37:15,080 --> 00:37:18,440
Speaker 3: for Cobra. I couldn't believe how steaking expensive it was.

899
00:37:18,640 --> 00:37:20,480
Speaker 3: I definitely did not choose to go to that route.

900
00:37:20,560 --> 00:37:22,120
Speaker 1: Yeah, so you want to use your HSAA funds to

901
00:37:22,120 --> 00:37:23,680
Speaker 1: play for Coverra, It's probably gonna be like, I don't know,

902
00:37:23,719 --> 00:37:25,640
Speaker 1: like twenty one twenty two hundred bucks a month something

903
00:37:25,680 --> 00:37:27,319
Speaker 1: like that incredibly expense. You're gonna get rid of your

904
00:37:27,360 --> 00:37:28,160
Speaker 1: HSI money fast.

905
00:37:28,360 --> 00:37:29,839
Speaker 3: That being said, so we're talking about what you can

906
00:37:29,880 --> 00:37:33,120
Speaker 3: do with your HSA funds. You can also use that

907
00:37:33,160 --> 00:37:36,120
Speaker 3: money to pay for Medicare premiums. And we're not talking

908
00:37:36,120 --> 00:37:38,840
Speaker 3: about the supplemental health policies, but we're like Part A,

909
00:37:39,200 --> 00:37:43,040
Speaker 3: Part B, Part D coverage those qualify. You can also

910
00:37:43,160 --> 00:37:46,680
Speaker 3: use HSA funds to pay for long term care insurance premiums.

911
00:37:46,680 --> 00:37:49,920
Speaker 3: But no, you can't just pay for your health insurance

912
00:37:50,000 --> 00:37:53,879
Speaker 3: premiums with your HSA directly. And what I say by

913
00:37:54,040 --> 00:37:57,480
Speaker 3: directly is that, well, guys, you can use your HSA

914
00:37:57,520 --> 00:38:01,120
Speaker 3: funds to pay for virtually anything as long as you

915
00:38:01,160 --> 00:38:04,359
Speaker 3: have the receipts that justify the expense. So I can

916
00:38:04,440 --> 00:38:06,920
Speaker 3: use HSA funds to pay for a four wheeler.

917
00:38:07,160 --> 00:38:09,040
Speaker 2: I could use HSA funds to pay for beer.

918
00:38:09,280 --> 00:38:12,120
Speaker 3: I guess you're right, anything you want to keep cool, timy,

919
00:38:12,360 --> 00:38:14,320
Speaker 3: And so it's not a direct way of paying for

920
00:38:14,360 --> 00:38:16,560
Speaker 3: those premiums. And it sounds like, Gabe, you're talking about

921
00:38:17,200 --> 00:38:21,000
Speaker 3: directly paying for those premiums with the HSA funds while

922
00:38:21,040 --> 00:38:23,440
Speaker 3: you can't do that. Hang onto your receipts, just like

923
00:38:23,480 --> 00:38:24,239
Speaker 3: you would.

924
00:38:24,440 --> 00:38:26,920
Speaker 1: For the medical expenses that are actually qualified, which premiums

925
00:38:26,920 --> 00:38:27,120
Speaker 1: are not.

926
00:38:27,200 --> 00:38:29,400
Speaker 3: Exactly, So later down the road you can kind of

927
00:38:29,440 --> 00:38:31,439
Speaker 3: mentally account for the fact that, all.

928
00:38:31,360 --> 00:38:33,320
Speaker 2: Right, I've got all these receipts, all.

929
00:38:33,160 --> 00:38:36,759
Speaker 3: These justifiable reimbursable expenses that I can tap into my

930
00:38:36,920 --> 00:38:39,520
Speaker 3: HSA four. Now I'm going to pay for my premium.

931
00:38:39,560 --> 00:38:42,600
Speaker 3: So in a sort of roundabout way, you can sort

932
00:38:42,600 --> 00:38:45,319
Speaker 3: of pay for your premiums, but in the same way

933
00:38:45,360 --> 00:38:46,640
Speaker 3: that you could use it to pay.

934
00:38:46,440 --> 00:38:50,520
Speaker 1: For a motorcycle, yeah, or a haircut, or craft beer,

935
00:38:50,680 --> 00:38:54,279
Speaker 1: so many things, so many things, just not legally. When

936
00:38:54,280 --> 00:38:56,120
Speaker 1: it comes to pulling the money out, it's all about

937
00:38:56,680 --> 00:38:58,480
Speaker 1: how money is fungible. And you're thinking about, oh, if

938
00:38:58,520 --> 00:39:01,040
Speaker 1: I take, exactly take out money from a previous expense

939
00:39:01,080 --> 00:39:03,720
Speaker 1: that I incurred fifteen years ago, but I want access

940
00:39:03,719 --> 00:39:05,560
Speaker 1: to that money now to pay for the four wheeler. Well,

941
00:39:05,560 --> 00:39:09,719
Speaker 1: I actually have the legal and irs authority to take

942
00:39:09,760 --> 00:39:11,399
Speaker 1: that money out and spend it on what I want

943
00:39:11,800 --> 00:39:14,320
Speaker 1: because I've already paid out of pocket for that expense exactly.

944
00:39:14,440 --> 00:39:17,440
Speaker 1: So yeah, even a jet ski, even a jet ski,

945
00:39:17,760 --> 00:39:21,160
Speaker 1: and so yeah, if you aren't terribly familiar with the HSA,

946
00:39:21,200 --> 00:39:22,920
Speaker 1: if you have access to one and you've never really

947
00:39:22,960 --> 00:39:25,440
Speaker 1: thought about signing up for it, we would just suggest

948
00:39:25,440 --> 00:39:26,960
Speaker 1: reading the article that will link to in the show

949
00:39:27,000 --> 00:39:30,120
Speaker 1: notes about HSA's because they can be powerful. Because again,

950
00:39:30,600 --> 00:39:32,839
Speaker 1: there aren't many ways in this life where you can

951
00:39:32,880 --> 00:39:36,040
Speaker 1: completely avoid taxation on certain dollars. The HSA is one

952
00:39:36,080 --> 00:39:38,640
Speaker 1: of the only ways to do that. Let's you do it, man,

953
00:39:38,719 --> 00:39:40,479
Speaker 1: unless you're like one of those people just earns nothing

954
00:39:40,520 --> 00:39:44,200
Speaker 1: by taking sabbaticals and that's how you avoid taxes too.

955
00:39:44,280 --> 00:39:46,879
Speaker 2: You got play that aerial card. That's right there, all right.

956
00:39:46,960 --> 00:39:51,360
Speaker 3: Our Facebook question of the week is from someone who's anonymous.

957
00:39:51,120 --> 00:39:53,080
Speaker 1: And he said more anonymous postings. By the way, I

958
00:39:53,120 --> 00:39:56,719
Speaker 1: don't know if people are more like nervous to privacy, Yeah,

959
00:39:56,719 --> 00:39:57,040
Speaker 1: I think so.

960
00:39:57,239 --> 00:40:00,160
Speaker 3: Yeah, people don't want everybody to know all their business,

961
00:40:00,200 --> 00:40:02,000
Speaker 3: like everybody knows everything about us.

962
00:40:02,120 --> 00:40:03,839
Speaker 1: Hey, maybe I'm the one and honestly posting in there.

963
00:40:03,880 --> 00:40:04,840
Speaker 1: Maybe this is a question for me.

964
00:40:04,880 --> 00:40:06,799
Speaker 3: All right here it is for the first time due

965
00:40:06,800 --> 00:40:09,239
Speaker 3: to a bad twenty twenty three financially, my wife and

966
00:40:09,280 --> 00:40:12,120
Speaker 3: I are okay, wife, So it is a dude could

967
00:40:12,160 --> 00:40:14,960
Speaker 3: be you. We are struggling to pay down our credit

968
00:40:15,000 --> 00:40:18,799
Speaker 3: cards every month. We've implemented a bare bones budget to

969
00:40:18,800 --> 00:40:21,680
Speaker 3: get caught back up, but we are incurring substantial interest

970
00:40:21,680 --> 00:40:24,000
Speaker 3: on our balances. I will be needing good credit for

971
00:40:24,040 --> 00:40:26,120
Speaker 3: some upcoming planes to start a business, but need my

972
00:40:26,200 --> 00:40:28,880
Speaker 3: financial life on track first. Is it a bad idea

973
00:40:28,920 --> 00:40:30,800
Speaker 3: to get a balanced transfer card to put the balance

974
00:40:30,840 --> 00:40:33,080
Speaker 3: on so we can dig ourselves out without losing hundreds

975
00:40:33,120 --> 00:40:36,680
Speaker 3: of dollars per month in interest. I'm fairly confident we

976
00:40:36,719 --> 00:40:40,160
Speaker 3: will not have a runaway credit card bill by reducing

977
00:40:40,200 --> 00:40:43,160
Speaker 3: those balances. I already took a twenty point score credit

978
00:40:43,200 --> 00:40:46,439
Speaker 3: score hit by having my normally paid off car carry

979
00:40:46,480 --> 00:40:48,920
Speaker 3: a balance over fifty percent. I want to dig out

980
00:40:48,920 --> 00:40:51,000
Speaker 3: of the hole as fast as possible without jeopardizing my

981
00:40:51,000 --> 00:40:54,399
Speaker 3: future plans. Any advices appreciated. Currently looking at discover it

982
00:40:54,600 --> 00:40:57,080
Speaker 3: balance transfer card, Joel, what do you think that's a

983
00:40:57,080 --> 00:40:59,840
Speaker 3: decent balance transfer card? Yeah, so that's one of the

984
00:40:59,880 --> 00:41:02,200
Speaker 3: one is worth considering and our balance transfer card is

985
00:41:02,239 --> 00:41:04,600
Speaker 3: a bad idea. This is we are always shades of

986
00:41:04,600 --> 00:41:07,680
Speaker 3: great sorts of dudes. So I think in simple yes

987
00:41:07,760 --> 00:41:08,000
Speaker 3: or knowing.

988
00:41:08,719 --> 00:41:11,120
Speaker 1: In a lot of cases, balance transfer card can be

989
00:41:11,440 --> 00:41:12,880
Speaker 1: the right tool for the problem that you're in.

990
00:41:12,960 --> 00:41:13,080
Speaker 6: Right.

991
00:41:13,080 --> 00:41:16,000
Speaker 1: There was actually another listener in Facebook Matt recently.

992
00:41:16,040 --> 00:41:16,800
Speaker 2: Her name was Laurie.

993
00:41:17,120 --> 00:41:20,360
Speaker 1: She just posted about her success with balance transfer cards.

994
00:41:20,520 --> 00:41:23,319
Speaker 1: She transferred her debt to two American Express cards with

995
00:41:23,400 --> 00:41:25,400
Speaker 1: a zero percent interest rate, and she was able to

996
00:41:25,400 --> 00:41:28,040
Speaker 1: pay off airy Day twenty five thousand bucks in debt

997
00:41:28,160 --> 00:41:31,319
Speaker 1: in the balance transfer timeframe. So she you know, paid

998
00:41:31,320 --> 00:41:33,720
Speaker 1: whatever the transfer fee was, it's usually something like three percent,

999
00:41:33,960 --> 00:41:36,320
Speaker 1: and then paid zero percent in interest on a recurring

1000
00:41:36,400 --> 00:41:39,000
Speaker 1: monthly basis, and so she was able just to like

1001
00:41:39,040 --> 00:41:41,720
Speaker 1: massively reduce the overall amount of money going to interest,

1002
00:41:42,040 --> 00:41:44,920
Speaker 1: which allowed her to kind of, yeah, get rid of

1003
00:41:44,920 --> 00:41:47,600
Speaker 1: that debt in record time. I bet that saved her

1004
00:41:47,600 --> 00:41:49,200
Speaker 1: a lot of money. Oh right, then she would have

1005
00:41:49,280 --> 00:41:51,520
Speaker 1: otherwise had to page and it just allowed her to

1006
00:41:51,560 --> 00:41:55,040
Speaker 1: make that quicker those quicker strides to getting rid of

1007
00:41:55,040 --> 00:41:57,960
Speaker 1: credit card debt altogether. And with rates on credit cards

1008
00:41:58,040 --> 00:41:59,799
Speaker 1: being much higher than they were just a year or

1009
00:41:59,800 --> 00:42:02,359
Speaker 1: two go, a balanced transfer card that gives you like

1010
00:42:02,600 --> 00:42:05,040
Speaker 1: eighteen or twenty one months of zero percentage or something

1011
00:42:05,080 --> 00:42:07,399
Speaker 1: like that can help provide even more relief than maybe

1012
00:42:07,400 --> 00:42:09,799
Speaker 1: it would have done three years ago when credit card

1013
00:42:09,800 --> 00:42:11,600
Speaker 1: interest rates were fifteen or sixteen percent.

1014
00:42:11,640 --> 00:42:15,040
Speaker 3: Absolutely, yeah, that's true. But you've got to use these

1015
00:42:15,040 --> 00:42:18,879
Speaker 3: balanced transfer cards properly, like LORI did. These cards can

1016
00:42:19,080 --> 00:42:21,680
Speaker 3: help or it can hurt you massively. And so if

1017
00:42:21,719 --> 00:42:23,960
Speaker 3: you don't have a solid plan to pay off that

1018
00:42:24,000 --> 00:42:28,000
Speaker 3: debt within that zero percent period, within that window of time,

1019
00:42:28,320 --> 00:42:30,359
Speaker 3: you could find yourself in even more debt.

1020
00:42:30,400 --> 00:42:31,279
Speaker 2: So some folks they end.

1021
00:42:31,200 --> 00:42:33,920
Speaker 3: Up transferring their debt, they grab a new card, and boom,

1022
00:42:33,920 --> 00:42:36,320
Speaker 3: they just go back to spending just like they've always spent.

1023
00:42:36,719 --> 00:42:38,600
Speaker 3: And this, of course means that you're just digging yourself

1024
00:42:38,640 --> 00:42:41,840
Speaker 3: into a much deeper hole. It's basically a balance transfer

1025
00:42:41,880 --> 00:42:44,839
Speaker 3: card done right, it can provide relief and it can

1026
00:42:45,040 --> 00:42:47,280
Speaker 3: accelerate debt payoff, but you've got to be careful.

1027
00:42:47,280 --> 00:42:50,439
Speaker 2: And I hate that this. I keep wanting to say, Scott,

1028
00:42:50,480 --> 00:42:50,960
Speaker 2: this's not Scott.

1029
00:42:50,960 --> 00:42:53,320
Speaker 3: This person's anonymous, But I hate that they got burned

1030
00:42:53,800 --> 00:42:56,480
Speaker 3: when it comes came to using cards. And I am

1031
00:42:56,560 --> 00:42:58,919
Speaker 3: confident just like he said he was as well because

1032
00:42:59,480 --> 00:43:01,879
Speaker 3: this is never happened to him before. So I think

1033
00:43:01,880 --> 00:43:05,399
Speaker 3: that gives me a little more I'm more comfortable saying yeah,

1034
00:43:05,560 --> 00:43:08,080
Speaker 3: maybe I think you probably right make this happen, because

1035
00:43:08,239 --> 00:43:11,080
Speaker 3: it's not like you flirted with having credit card balances

1036
00:43:11,120 --> 00:43:13,840
Speaker 3: in the past. He said, he's never had this happen before.

1037
00:43:14,440 --> 00:43:16,600
Speaker 3: And so as long as you are treating this with

1038
00:43:16,800 --> 00:43:19,799
Speaker 3: the like within the serious nature that you should be like,

1039
00:43:19,840 --> 00:43:22,319
Speaker 3: this is a all hands on deck red alert, like

1040
00:43:22,440 --> 00:43:25,120
Speaker 3: we have to get rid of this balance otherwise we're

1041
00:43:25,200 --> 00:43:26,800
Speaker 3: going to be even more royally screwed.

1042
00:43:26,800 --> 00:43:28,960
Speaker 1: Something else that makes me think that you're spot on

1043
00:43:29,040 --> 00:43:31,880
Speaker 1: there in your assessment is the fact that this anonymous

1044
00:43:31,880 --> 00:43:33,880
Speaker 1: poster says, we implemented a bare bones budget to get

1045
00:43:33,880 --> 00:43:36,279
Speaker 1: caught back up right, So, yeah, that is just.

1046
00:43:36,360 --> 00:43:38,600
Speaker 2: Another he knows the language, you know, is the term.

1047
00:43:38,640 --> 00:43:42,719
Speaker 1: That's another massive check mark right in favor of saying, oh, yeah, no,

1048
00:43:42,800 --> 00:43:44,480
Speaker 1: you're taking the proper You're taking.

1049
00:43:44,239 --> 00:43:45,239
Speaker 2: This with all seriousness.

1050
00:43:45,520 --> 00:43:47,400
Speaker 1: You're not just hoping that this is an outlet and

1051
00:43:47,440 --> 00:43:50,040
Speaker 1: crossing your fingers thinking that oh maybe maybe this will stick.

1052
00:43:50,239 --> 00:43:52,520
Speaker 2: This is a rare occurrence, and you're taking like, never

1053
00:43:52,600 --> 00:43:53,319
Speaker 2: gonna happen again.

1054
00:43:53,440 --> 00:43:56,280
Speaker 1: Yeah. No, it's like you've pulled the emergency fire alarm

1055
00:43:56,320 --> 00:43:58,480
Speaker 1: and you're like serious about getting rid of this credit

1056
00:43:58,560 --> 00:44:01,840
Speaker 1: card debt, and so yeah, that's the kind of dedication

1057
00:44:01,880 --> 00:44:03,920
Speaker 1: it's going to take to pay off that credit card

1058
00:44:04,000 --> 00:44:06,400
Speaker 1: balance in the short amount of time in that balance

1059
00:44:06,400 --> 00:44:10,160
Speaker 1: transfer window. We'll link to our article and balanced transfer cards.

1060
00:44:10,200 --> 00:44:12,840
Speaker 1: There's a few that are better than others. The discover

1061
00:44:12,960 --> 00:44:15,720
Speaker 1: It that the poster mentioned is one of the good ones.

1062
00:44:15,880 --> 00:44:18,400
Speaker 1: There are other solid ones out there too, some of

1063
00:44:18,440 --> 00:44:22,160
Speaker 1: which might have longer time windows or maybe a lower

1064
00:44:22,239 --> 00:44:23,880
Speaker 1: balance transfer fee. You just want to look at all

1065
00:44:23,880 --> 00:44:26,520
Speaker 1: those specifics before you and then say, oh, wait, can

1066
00:44:26,560 --> 00:44:28,520
Speaker 1: I get it done in this window or not? But man,

1067
00:44:28,560 --> 00:44:31,160
Speaker 1: for some people who are dedicated, that's like the perfect

1068
00:44:31,160 --> 00:44:33,080
Speaker 1: thing to help them get.

1069
00:44:32,920 --> 00:44:35,560
Speaker 2: Out of a bad debt situation more quickly. Yeah, I

1070
00:44:35,600 --> 00:44:36,000
Speaker 2: will say.

1071
00:44:36,239 --> 00:44:38,000
Speaker 3: The only thing that does give me a pause is that,

1072
00:44:38,160 --> 00:44:40,200
Speaker 3: of course he didn't plan to have these balances around,

1073
00:44:40,239 --> 00:44:42,920
Speaker 3: and so if the same financial headwinds that him and

1074
00:44:42,920 --> 00:44:45,319
Speaker 3: his wife ran into last year, if those persist, if

1075
00:44:45,360 --> 00:44:47,560
Speaker 3: that's if that is on repeat and that happens again

1076
00:44:47,600 --> 00:44:49,719
Speaker 3: this year, that's the part that makes me a little

1077
00:44:49,719 --> 00:44:51,600
Speaker 3: bit nervous. And I guess the part too because he's

1078
00:44:51,600 --> 00:44:54,160
Speaker 3: talking about keeping his credit score high so that he

1079
00:44:54,719 --> 00:44:56,480
Speaker 3: which I assume is because he's looking to take out

1080
00:44:56,480 --> 00:44:58,400
Speaker 3: a business loan. He's talking about starting a new business.

1081
00:44:58,800 --> 00:45:00,399
Speaker 3: That's the other part that also makes me a little

1082
00:45:00,400 --> 00:45:03,080
Speaker 3: nervous too. The waters are getting a little muddied here,

1083
00:45:03,360 --> 00:45:05,839
Speaker 3: and we've all got different levels of risk that we're

1084
00:45:05,840 --> 00:45:08,239
Speaker 3: comfortable with. But I personally am starting to feel a

1085
00:45:08,280 --> 00:45:11,600
Speaker 3: little bit nervous as I'm thinking about him, possibly because

1086
00:45:11,640 --> 00:45:14,160
Speaker 3: what if he's like, oh man, this opportunity is never

1087
00:45:14,160 --> 00:45:16,040
Speaker 3: going to present himself again. We've got to move now

1088
00:45:16,080 --> 00:45:18,120
Speaker 3: as far as the business goes. Maybe he still has

1089
00:45:18,120 --> 00:45:20,120
Speaker 3: that balance in the personal cards. He's also taking out

1090
00:45:20,160 --> 00:45:22,800
Speaker 3: some additional business lines of credit or some business loans.

1091
00:45:23,360 --> 00:45:24,560
Speaker 2: That makes me I.

1092
00:45:24,560 --> 00:45:27,000
Speaker 3: Would just say, proceed very cautiously when it comes to

1093
00:45:27,680 --> 00:45:28,719
Speaker 3: what you're signing yourself up for.

1094
00:45:28,840 --> 00:45:31,680
Speaker 1: Yeah, that could potentially be a really nerve wracking situation

1095
00:45:31,800 --> 00:45:33,359
Speaker 1: to be in for months and years to come.

1096
00:45:33,400 --> 00:45:35,400
Speaker 2: So yeah, be careful, but sound stressful.

1097
00:45:35,520 --> 00:45:37,600
Speaker 1: Yeah, and prioritize, I would say, getting out of this

1098
00:45:37,680 --> 00:45:40,080
Speaker 1: debt before you start taking out a business loan, and

1099
00:45:40,080 --> 00:45:42,640
Speaker 1: you proceed in that direction. One Okay, all right, Matt,

1100
00:45:42,680 --> 00:45:44,319
Speaker 1: let's get back to the beer that we had on

1101
00:45:44,480 --> 00:45:46,479
Speaker 1: this episode. This is called hop Showers. It's a double

1102
00:45:46,600 --> 00:45:49,440
Speaker 1: dry hopped India pale ale from Other Half Brewing. What

1103
00:45:49,480 --> 00:45:50,919
Speaker 1: were your thoughts on this one?

1104
00:45:51,000 --> 00:45:52,680
Speaker 3: I feel like this is a beer that you would

1105
00:45:52,719 --> 00:45:55,000
Speaker 3: have named like hop Showers. I don't know, I feel

1106
00:45:55,000 --> 00:45:57,120
Speaker 3: like I've heard you say that even before, where it's

1107
00:45:57,160 --> 00:46:00,440
Speaker 3: like I feel like I'm outside a nice spring hot shower,

1108
00:46:00,600 --> 00:46:01,520
Speaker 3: just like tasting.

1109
00:46:01,239 --> 00:46:03,000
Speaker 1: The flavors and maybe I'm very creative.

1110
00:46:03,040 --> 00:46:03,480
Speaker 2: Sounds like you.

1111
00:46:04,200 --> 00:46:06,920
Speaker 3: I liked it. It was it's funny that it's hop Showers.

1112
00:46:06,920 --> 00:46:08,520
Speaker 3: I was going to say it's it. Actually it's a

1113
00:46:08,560 --> 00:46:12,840
Speaker 3: slightly drier double ipa like so recently we've had some

1114
00:46:12,960 --> 00:46:15,440
Speaker 3: that were bigger, like the triples, where there's a little

1115
00:46:15,440 --> 00:46:18,080
Speaker 3: more sugar, a little more sweetness going on. Yeah, this

1116
00:46:18,120 --> 00:46:20,760
Speaker 3: one doesn't quite have that same juiciness.

1117
00:46:20,840 --> 00:46:21,000
Speaker 2: Yeah.

1118
00:46:21,040 --> 00:46:22,719
Speaker 1: Some of the Other halfs are even like I would say,

1119
00:46:22,719 --> 00:46:25,040
Speaker 1: creamier than this one. Right, So it's a little drier,

1120
00:46:25,080 --> 00:46:27,879
Speaker 1: a little funkier, less creamy, less sweet, but still really good.

1121
00:46:27,960 --> 00:46:29,560
Speaker 2: Like they don't make bad beers. Man.

1122
00:46:29,640 --> 00:46:31,440
Speaker 3: Yeah, I didn't realize it was a dry hopped pale,

1123
00:46:31,480 --> 00:46:33,200
Speaker 3: so I guess that kind of makes sense too. Yeah,

1124
00:46:33,440 --> 00:46:35,160
Speaker 3: it's a or a dry hopped ip I was gonna

1125
00:46:35,160 --> 00:46:37,160
Speaker 3: say it kind of tastes like a dry hopped pale

1126
00:46:37,200 --> 00:46:41,040
Speaker 3: ale because the fact that it drinks so clean, and.

1127
00:46:40,960 --> 00:46:43,839
Speaker 1: Some people are like what they're just what are they

1128
00:46:44,040 --> 00:46:46,440
Speaker 1: talking about? Because there's just like India pale ale, pale al,

1129
00:46:46,640 --> 00:46:48,200
Speaker 1: double dry hot. I mean there's a lot of terms too.

1130
00:46:48,200 --> 00:46:50,160
Speaker 1: If you're not a beer nerd to the extent that

1131
00:46:50,160 --> 00:46:52,399
Speaker 1: Matt and I are, which who is you're?

1132
00:46:52,400 --> 00:46:54,879
Speaker 3: Should we get folks a quick quick lesson on why

1133
00:46:54,920 --> 00:46:56,400
Speaker 3: they added hops to beer to begin with.

1134
00:46:56,719 --> 00:46:59,840
Speaker 1: Oh, that was to keep the beer spoiling on the

1135
00:47:00,080 --> 00:47:01,560
Speaker 1: long trip to India.

1136
00:47:01,320 --> 00:47:03,400
Speaker 3: Right from like the UK they thought there, Yeah, so

1137
00:47:03,440 --> 00:47:04,920
Speaker 3: that was that's when they started adding ops to beer.

1138
00:47:04,960 --> 00:47:07,520
Speaker 3: And and evidently that those IPAs were much more better

1139
00:47:07,560 --> 00:47:09,399
Speaker 3: than these kind of modern East Coast ones we drink.

1140
00:47:09,440 --> 00:47:11,000
Speaker 2: Got to feel in those beers weren't anything like what

1141
00:47:11,000 --> 00:47:13,960
Speaker 2: we're drinking right now. Yeah, oh no, oh no, not

1142
00:47:14,040 --> 00:47:14,439
Speaker 2: even close.

1143
00:47:14,560 --> 00:47:16,279
Speaker 1: Do you remember dog Fish had at one point did

1144
00:47:16,480 --> 00:47:19,759
Speaker 1: like the Egyptian recipes from like thousands of.

1145
00:47:19,719 --> 00:47:22,600
Speaker 3: Years like dug up something that was carved on like papyrus,

1146
00:47:22,960 --> 00:47:25,799
Speaker 3: and they actually used like some old honey that you

1147
00:47:25,800 --> 00:47:27,920
Speaker 3: can only get in Egypt. As well, I want to say,

1148
00:47:28,120 --> 00:47:29,279
Speaker 3: in order to kind of replicate it.

1149
00:47:29,360 --> 00:47:31,560
Speaker 2: Yeah, that one. I don't remember that one being super

1150
00:47:31,560 --> 00:47:32,200
Speaker 2: great either.

1151
00:47:32,480 --> 00:47:34,319
Speaker 1: I like this beer, yeah, I mean yeah, the ancient

1152
00:47:34,320 --> 00:47:36,120
Speaker 1: beers obviously aren't going to taste is quite as good

1153
00:47:36,120 --> 00:47:37,319
Speaker 1: as the modern ones, but they did a really good

1154
00:47:37,360 --> 00:47:39,120
Speaker 1: job replicating some of them. All Right, that's gonna do

1155
00:47:39,160 --> 00:47:40,839
Speaker 1: it for this episode, though. If you've got a money

1156
00:47:40,920 --> 00:47:42,480
Speaker 1: question for us, we'd love to hear it. Just check

1157
00:47:42,520 --> 00:47:44,560
Speaker 1: out the simple instructions at how to money dot com

1158
00:47:44,560 --> 00:47:46,560
Speaker 1: slash ask and don't forget to while you're there, just

1159
00:47:46,600 --> 00:47:49,040
Speaker 1: sign up for the newsletter how toomoney dot com slash newsletter.

1160
00:47:49,200 --> 00:47:51,320
Speaker 1: I just a reminder that we've actually lowered the threshold

1161
00:47:51,360 --> 00:47:54,000
Speaker 1: to get sweet how to Money swagged for referring to

1162
00:47:54,040 --> 00:47:55,799
Speaker 1: your friends to the how to Money newsletter. So if

1163
00:47:55,800 --> 00:47:58,399
Speaker 1: you're already subscriber, let a couple friends know and guess what,

1164
00:47:58,480 --> 00:48:00,680
Speaker 1: Pretty soon I'll send you money. We'll send you a

1165
00:48:00,719 --> 00:48:02,640
Speaker 1: book that sounds kind of crazy like, but then we'll

1166
00:48:02,640 --> 00:48:03,520
Speaker 1: actually send you money.

1167
00:48:04,040 --> 00:48:05,439
Speaker 2: We call it beer money. We'll send you beer money.

1168
00:48:05,440 --> 00:48:06,600
Speaker 2: Beer money, Yeah, beer on us.

1169
00:48:06,640 --> 00:48:08,400
Speaker 1: We'll send you a book, and you know, maybe if

1170
00:48:08,440 --> 00:48:10,279
Speaker 1: you get to that elite threshold, we'll send you a

1171
00:48:10,280 --> 00:48:11,440
Speaker 1: pair of how to money socks as well.

1172
00:48:11,520 --> 00:48:13,680
Speaker 3: Sounds right, man, but that is going to be it

1173
00:48:13,800 --> 00:48:16,160
Speaker 3: for this episode, buddy. Until next time, best friends out

1174
00:48:16,200 --> 00:48:18,160
Speaker 3: and best Friends Out