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

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Speaker 1: Today we're answering your listener questions. This is a listener

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Speaker 1: Question Monday episode. Next week we'll have another interview for you,

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Speaker 1: just like we did last week, but on the every

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Speaker 1: other Monday's we have listener questions. Put it. Put it

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Speaker 1: on your calendar so you know what you're getting into,

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Speaker 1: so you can start looking forward to it, playing your

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Speaker 1: months around the different episodes that we've got slated for

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Speaker 1: you exactly. I think your life should revolve around your

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Speaker 1: favorite podcasts, and so hopefully we make your list of favorites.

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Speaker 1: Absolutely so. We've got five great listener questions to get

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Speaker 1: to today. One of those is about how student loans

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Speaker 1: can prevente you from contributing to a roth ira A.

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Speaker 1: We've got a listener question who is potentially going to

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Speaker 1: tap some retirement funds after getting laid off? We're going

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Speaker 1: to tackle that one, as well as when to consider

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Speaker 1: health sharing plans over health insurance in order to save

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Speaker 1: some money. We got those three plus a couple of

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Speaker 1: others today. As Uh, the NBA JAM spokesman would say,

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Speaker 1: in my video game Growing Up Boom Shakolaka. What does

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Speaker 1: that have to do? I don't know. Is that that

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Speaker 1: was after like getting to two shots in a row, right,

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Speaker 1: I think so? And he's like he's heating up. After

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Speaker 1: four he's on fire. Four or five, he's on fire.

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Speaker 1: I like, boom shakolaus to my favorite. But before we

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Speaker 1: get to those questions, Matt, just a one quick tip

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Speaker 1: I wanted to share is that, let's say you're taking

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Speaker 1: ride chair and you and I were both one car families.

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Speaker 1: I probably take ride chair just a little bit more

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Speaker 1: than you, but I don't really take it all that often.

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Speaker 1: But the other day I don't go anywhere. You just

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Speaker 1: say no to plans. I just I just hanging hanging

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Speaker 1: out around the house. So this past weekend I went

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Speaker 1: to play disc golf friend. That's only simili true. It's

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Speaker 1: also mostly true you're kind of a hermit. But so

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Speaker 1: it was my friend's birthday and there was just no

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Speaker 1: way for me to borrow the car because my wife

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Speaker 1: was going to meet up with us later and it

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Speaker 1: was too far a little bit too far for the bike,

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Speaker 1: or if I tried to buy it would have been

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Speaker 1: like really late. And so I was like, all right,

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Speaker 1: I guess ride chair it is on this one and

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Speaker 1: I on the hail and Uber. Yeah, I maybe use

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Speaker 1: ride chair once a month. Um, trying to you know,

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Speaker 1: not do it too often because it's expensive. And when

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Speaker 1: I opened not as expensive though as buying a used

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Speaker 1: car right now completely, you know, I mean, and so

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Speaker 1: relative to what you know, the expenses that you're used to, yes,

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Speaker 1: it's maybe a little more expensive than than what you

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Speaker 1: would like to see. But for everybody else out there

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Speaker 1: who is either looking to buy that second car or

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Speaker 1: they're just just the cost of maintaining that second vehicle. Man,

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Speaker 1: there's Uber and left charges. It's a small fee to pay,

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Speaker 1: and we're going to have one car to drop in

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Speaker 1: the bucket. And and so I opened the Uber app

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Speaker 1: and it was like, I think it was like thirty

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Speaker 1: eight or forty two dollars for overnight. So I take

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Speaker 1: back five miles away and I think it's five miles away.

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Speaker 1: And then but then I opened up the lift app

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Speaker 1: and so it literally what a massive difference, same cheap car,

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Speaker 1: like you weren't getting like the you know, Uber black

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Speaker 1: would always choose the cheapest option. I choose to wait

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Speaker 1: and save. I was like, I can wait ten minutes

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Speaker 1: to save an extra five bucks. And so, yeah, that's

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Speaker 1: one of those things where if you are a habitual

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Speaker 1: ride chair user, or even if you just use it

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Speaker 1: on occasion, have an account with both of these main apps,

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Speaker 1: and then you know it takes almost no time to

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Speaker 1: plug in your destination into both and kind of just

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Speaker 1: see the price discrepancy. Literally, an extra thirty seconds or

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Speaker 1: minute can save you bucks. Um, it's it's amazing how

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Speaker 1: big the price difference can be. I just assumed that

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Speaker 1: it would be a few dollars difference, but I didn't realize. No, no,

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Speaker 1: the price can get cut in half. Yeah, totally worth

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Speaker 1: it to shop around the different apps and see, you

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Speaker 1: know who's offering the best rate. Also, another quick tip

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Speaker 1: two is to make sure you've got your updated credit

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Speaker 1: card information on file with both apps. That way, because

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Speaker 1: you don't want to be in a situation where you

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Speaker 1: see that oh my gosh, yeah I could save a

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Speaker 1: ton of money and then they're like, oh card declined

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Speaker 1: or please update your information. That's the kind of thing

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Speaker 1: that also takes a little bit of foresight to make.

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Speaker 1: And those prices are changing like every thirty seconds, like

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Speaker 1: they're updating all the time. So yeah, you might end

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Speaker 1: up paying ten bucks more just because I had to

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Speaker 1: put my credit card information in So uh yeah, not

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Speaker 1: a bad tip. Alright, let's let's move on. Matt. Let's

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Speaker 1: mention the beer that we're having on this episode. This

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Speaker 1: one is called Sour Bikini and it's by Evil Twin Brewing.

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Speaker 1: We'll give our thoughts on this sour hoppy beer at

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Speaker 1: the end of the episode, but for now, let's move

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Speaker 1: on to listener questions. And if you have a question

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Speaker 1: you want Matt and I to tackle in an upcoming episode,

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Speaker 1: just go to how to money dot com slash ask.

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Speaker 1: It's really simple to submit that question and we've got

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Speaker 1: instructions for you there. Can't wait to hear from you.

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Speaker 1: All right, let's get to that first one. This one

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Speaker 1: is about health insurance. Hi, Matt and Joel really enjoy

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Speaker 1: your podcast. My name is John and from the Portland,

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Speaker 1: Oregon area. Question today is about medical sharing programs. I

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Speaker 1: know that you've got some information on your website about those. However,

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Speaker 1: I know that Joel mentioned that he had moved over

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Speaker 1: to to a medical sharing program this year. I believe

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Speaker 1: by listening to your podcast, I was just wondering how

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Speaker 1: that's going, if you had any newer observations with your

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Speaker 1: experiences with it. My situation is that I'm retired. I'm

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Speaker 1: on Cobra from my former employer until the end of

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Speaker 1: this year, and then I really need to do something

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Speaker 1: next year. And with the cost of the premiums, even

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Speaker 1: with Cobra, it's so expensive, and was really looking at

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Speaker 1: a medical sharing program as an alternative to that. So

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Speaker 1: if you have UM I'm about two and a half

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Speaker 1: years from my medicare and my wife is about three

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Speaker 1: and a half years from that. So wondering if you

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Speaker 1: see any pitfalls or any suggestions or opinions that you

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Speaker 1: might have in addition to the information that that you've

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Speaker 1: provided so far. Thanks so much again, Really enjoy your show.

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Speaker 1: Thanks for taking time to answer my question. All right, Matt,

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Speaker 1: like John's question, and we haven't talked about health sharing

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Speaker 1: companies in in a minute. It's been a minute. Yeah,

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Speaker 1: and yeah, you have been on meta share your family

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Speaker 1: for years and years now, so we'll get to kind

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Speaker 1: some of your experience. But John's right, Like, I just

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Speaker 1: signed up not too long ago with the same company

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Speaker 1: year with with meta share, and it's been I don't know,

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Speaker 1: seven or eight months now, I guess. And I actually

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Speaker 1: joined up even though I still had Cobra eligibility with

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Speaker 1: my prior company because those Cobra premiums were almost a

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Speaker 1: month cost prohibitive, right, Yeah, so it sounds like you know,

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Speaker 1: your previous employer, John was covering those costs. So good

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Speaker 1: for you. But yeah, so far, so good in our

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Speaker 1: meta share experiment. But we also haven't had any major

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Speaker 1: incidents yet, and so you know, it's not like I've

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Speaker 1: necessarily put our Medishare coverage to an extreme test. Yeah,

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Speaker 1: we are in a similar boat where we've not actually

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Speaker 1: had to fully utilize menis share yet. Which is the

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Speaker 1: way to do it. That's what you want. You don't

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Speaker 1: want to put it to the extreme test, like you

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Speaker 1: don't want to be like I got cancer and it

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Speaker 1: paid out, like you'd prefer, hopefully to not get some

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Speaker 1: of something severe, right, no severe injuries, no terrible diseases.

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Speaker 1: Although I will say that I say that we haven't

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Speaker 1: fully util utilized it, but just having that there, I mean,

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Speaker 1: it gives you usertain amount of peace of mind, right,

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Speaker 1: And so I guess you could argue that we have

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Speaker 1: been using it this and you know, I think we've

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Speaker 1: had it now for over five years, you know, So

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Speaker 1: let's kind of explain what these different health sharing companies are.

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Speaker 1: And it is really important for us to say loud

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Speaker 1: and clear that health sharing is not insurance. UH. It

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Speaker 1: differs in a few different ways. It's it's first of all,

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Speaker 1: it's not regulated like insurance companies are. Some people hate

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Speaker 1: them because of this, but others love them for it.

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Speaker 1: But these companies like they're they're basically a group of

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Speaker 1: members who are pooling risks and resources, not unlike insurance.

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Speaker 1: But they typically have similar religious or ethical beliefs as

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Speaker 1: one another as well, and they usually have to sign

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Speaker 1: a pledge stating that they'll abide by certain guidelines, certain behaviors.

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Speaker 1: That's definitely the case for Meta Share, who Joel and

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Speaker 1: I are both with. UH. If you're not particularly religious,

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Speaker 1: Liberty health share they used to be one of the

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Speaker 1: only options since you're not required to agree to any

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Speaker 1: specific like doctrinal beliefs, but recently, said Era, they've been

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Speaker 1: another option that's available that is completely secular with with

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Speaker 1: no religious ties at all. And so these are worth

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Speaker 1: considering because you know, although these companies aren't technically in

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Speaker 1: the insurance business. They still behave like insurance, right, they

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Speaker 1: still have insurance like vibes. You're gonna learn some different terms,

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Speaker 1: some some different Lenko. Just like I said, instead of

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Speaker 1: a family deductible that's gonna be reached with meta share,

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Speaker 1: it's called an annual household portion. There's different terms, but

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Speaker 1: they are very similar to the ones that insurance companies

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Speaker 1: actually used as well. So if you jump into the

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Speaker 1: health sharing game, if you decide that this is right

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Speaker 1: for you, you're gonna have to learn some new terminology,

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Speaker 1: but don't worry. It's not too difficult, and it will

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Speaker 1: reflect kind of what you're used to with a traditional

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Speaker 1: insurance provider. And and let's talk about why someone might

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Speaker 1: do this mat I mean one of the main reasons

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Speaker 1: people sign up for a health sharing program instead of

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Speaker 1: getting traditional insurance. It's really just the cost savings, right,

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Speaker 1: as John pointed out, that is the main check mark

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Speaker 1: in in favor of ditching your current health insurance and

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Speaker 1: going towards to a health sharing company. And the monthly

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Speaker 1: premiums MATT for our family what we'd be paying on

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Speaker 1: a traditional health plan through healthcare dot gov. I looked into.

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Speaker 1: It was in the dollar a month range, which is

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Speaker 1: still not quite as much as our Cobra was, but

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Speaker 1: it's really expensive. In our our monthly share amount through

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Speaker 1: menashare is in the two hundred and fifty range, So

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Speaker 1: that's just a significant savings. Yeah, you heard Joe correctly

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Speaker 1: to two hundred and fifty. Yeah, and a lot of

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Speaker 1: people could see savings in that range if they offer

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Speaker 1: health sharing instead of traditional health insurance. It's worth knowing

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Speaker 1: noting that that you know, this health sharing coverage, it

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Speaker 1: doesn't cover wellness visits and routine lab work since menashare

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Speaker 1: views those types of visits and more as like planned maintenance.

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Speaker 1: But you know what, they would argue, that's a good thing,

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Speaker 1: and I think I would argue that's a good thing

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Speaker 1: to un that's that's how we're able to keep costs

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Speaker 1: down right exactly, are covering some of these things out

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Speaker 1: of pocket where we are intentionally, whether that's shopping around

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Speaker 1: or proactively going to see the doctor when it comes

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Speaker 1: to certain ailments we might be experiencing. Yeah, and it's

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Speaker 1: kind of like um car insurance. How you don't file

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Speaker 1: a claim just because you get a flat tire and

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Speaker 1: I think that's a better use of health insurance. The

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Speaker 1: same thing with with home or insurance. You don't file

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Speaker 1: a claim because a rock went through one of your

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Speaker 1: window panes. You get that repaired on your own, And

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Speaker 1: so that's kind of how these health sharing companies work.

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Speaker 1: But wellness visits, you know, are eligible for sharing for

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Speaker 1: for small children up to the ages of six. Um.

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Speaker 1: There doesn't appear like that's the stage of life the

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Speaker 1: year in John, if you're a couple of years out

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Speaker 1: from being eligible for Medicare. But yeah, those cost savings

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Speaker 1: depending on age and stage and your income can be

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Speaker 1: significant if you're out for health sharing versus traditional health

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Speaker 1: care insurance. Yeah, but keep in mind that these plans,

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Speaker 1: they're not the best choice for everyone. So let's talk

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Speaker 1: about who these plans make sense for, who they don't. John,

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Speaker 1: this isn't going to be your situation. But if you've

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Speaker 1: got health insurance through your employer, that's always almost gonna

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Speaker 1: be the best spot for you because employers they often

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Speaker 1: help subsidize a big chunk of the month that cost,

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Speaker 1: of course, and also because of government subsidies, folks under

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Speaker 1: a certain income threshold, they can make out like bandits

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Speaker 1: by getting their coverage through healthcare dot gov. It's worth

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Speaker 1: putting in your information to see what sort of subsidy

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Speaker 1: you might qualify for if you're in a situation like this.

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Speaker 1: The a c A. They made some big changes to

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Speaker 1: how the subsidies are calculated and how much folks can get.

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Speaker 1: A lot more folks qualify for greatly reduced pricing now,

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Speaker 1: and so you know, don't run to one of these

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Speaker 1: health sharing planes if you have a better option, although

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Speaker 1: for you, John, it doesn't sound like that you necessarily

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Speaker 1: have a better option. Yeah, yeah, it sounds like health

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Speaker 1: sharing does make the most sense in this interim period

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Speaker 1: for John until that or Cobra. Yeah, he gets to

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Speaker 1: Medicare and and Corobra is just so dang expensive. It's

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Speaker 1: gonna cost John an arm and a leg, and that's

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Speaker 1: money that could likely be put to better use. And

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Speaker 1: so yeah, if you're if you're one of these folks

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Speaker 1: who can get a traditional healthcare policy on the exchange

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Speaker 1: for a similar monthly premium to what you would have

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Speaker 1: paid to one of the health sharing companies, well you'd

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Speaker 1: suggest going in that direction because you're getting traditional health

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Speaker 1: insurance for the same price. But if you make too

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Speaker 1: much to qualify for one of these subsidies for a

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Speaker 1: price break, and you feel comfortable agreeing to abide by

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Speaker 1: the rules of the sharing company that you want to

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Speaker 1: go with, and with the caveats right that these sharing

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Speaker 1: company's come with, we think they can save you a bundle,

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Speaker 1: and they do make sense for you know, a handful

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Speaker 1: of people. It's also important to mention that anyone going

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Speaker 1: this route really should have extra money in their savings account,

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Speaker 1: right because you know, I want to have at least

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Speaker 1: enough on hand to cover your maximum out of pocket expenses,

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Speaker 1: and that means your annual portion in addition to some

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Speaker 1: of those wellnesses that you're going to have to take

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Speaker 1: that year, Matt. And so we actually have a health

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Speaker 1: sharing review up on our website and Math specifically talks

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Speaker 1: about his experience with Meta share in depth on that

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Speaker 1: will link to that article in our show notes. But

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Speaker 1: but John, it sounds like for you this is a

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Speaker 1: good stop gap for the next you know, two and

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Speaker 1: a half three years until you get that you know,

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Speaker 1: retirement health coverage from the federal government. Yeah, and it's

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Speaker 1: worth pointing out to that regardless of which plan you

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Speaker 1: go with. Of course, that you do your due diligence,

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Speaker 1: that you dive into the details and specifically that you

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Speaker 1: look at some of the different exclusions, right, and so

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Speaker 1: tobacco use, if you have any pre existing conditions, even

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Speaker 1: if you have some prescriptions that cost a lot of money.

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Speaker 1: These are all things that you need be aware of

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Speaker 1: before you end up signing and going with one of

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Speaker 1: these companies. Yeah, they're not regulated in the same way

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Speaker 1: as the traditional health insurance companies, and this is how

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Speaker 1: they might have different different standards when it comes to

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Speaker 1: each of those things that you just mentioned exactly. So yeah,

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Speaker 1: definitely something to be aware of, John, Best of luck

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Speaker 1: to you. All right, We've got more questions to get to,

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Speaker 1: including how student loans could make somebody ineligible for contributing

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Speaker 1: money to a roth ira A. We'll get to that

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Speaker 1: and more right after this break. We're back from the

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Speaker 1: Breaklet's key movement. We've got another listener question here, and

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Speaker 1: this one has to do with house hacking. Hi, Joel

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Speaker 1: and Matt. My name is Nicole and I live in

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Speaker 1: the Raleigh, North Carolina area, and I have a question

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Speaker 1: for you guys. This is in regards to house hacking.

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Speaker 1: I currently have a successful airbnb business running out of

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Speaker 1: my home for the past four years. I'm also contributing

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Speaker 1: to my retired and by maxing out my wrath I

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Speaker 1: RA and I match my work retirement savings, and I

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Speaker 1: also put money consistently in an online savings account. My

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Speaker 1: fancy and I would really like to get on the

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Speaker 1: house hacking van wagen. He also has a significant amount

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Speaker 1: of money in a savings account from a family inheritance

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Speaker 1: to be used for this purpose. The problem is we

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Speaker 1: don't know how or where to start. We're just interested

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Speaker 1: in purchasing a four plux as a rental property. I

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Speaker 1: listened to your podcast every day and love all of

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Speaker 1: the suggestions you give, but just don't know how to

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Speaker 1: begin this process. Do we work with a real letor

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Speaker 1: to find our first investment property. I know that we

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Speaker 1: need to put down because this will be an income property,

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Speaker 1: but I guess this first step is just scary for me.

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Speaker 1: We really want to do this. I appreciate any insights

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Speaker 1: that you can give me. Also, another question about a printer.

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Speaker 1: What auto of the absent echo tank do you recommend?

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Speaker 1: There are some models that are really expensive out there,

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Speaker 1: just wondering what you would prefer. Thank you and have

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Speaker 1: a great day. All right, Nicole, thank you for that question.

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Speaker 1: And first of all, let's talk about house acting, because

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Speaker 1: that is truly one of the best levers that you

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Speaker 1: can use to increase your income and to reach financial

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Speaker 1: independence more quickly. I love that you're pursuing this, but

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Speaker 1: here's the bottom line. You are already house hacking. We

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Speaker 1: believe that anytime you're using real estate, uh and so

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Speaker 1: that whether that's a single room like you're currently doing,

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Speaker 1: or whether that's a quadplex, if you are using that

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Speaker 1: strategy to offset the single largest line atom expense that

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Speaker 1: we have every month, which is housing, then you are

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Speaker 1: house hacking. But we understand what you're getting at here.

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Speaker 1: You know, you're you're looking for a new investment property

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Speaker 1: where you will potentially have full time tenants. Emotionally, that's

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Speaker 1: going to feel a lot different and it's financially much

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Speaker 1: different as well. But we think this is a smart move.

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Speaker 1: We think it's great that you are looking to diversify

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Speaker 1: your streams of income here. Yeah, I love it too.

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Speaker 1: And let's get to maybe some of Nicole's specific questions.

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Speaker 1: She mentioned having to put down and Nicole is actually

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Speaker 1: ideal to have saved up for a down payment on

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Speaker 1: an investment property because that is what usually gives you

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Speaker 1: access to the best rates and terms, whereas if it's

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Speaker 1: a primary residence, down basically gets you into that rarefied air.

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Speaker 1: But is what lenders want to see if it's an

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Speaker 1: investment property we're talking about, So I would start talking

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Speaker 1: to a couple of local lenders right now, discuss your

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Speaker 1: plans with them, and start getting rate quotes. At least

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Speaker 1: three quotes is what I would want in hand if

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Speaker 1: how were you, so you can compare them and get

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Speaker 1: the best deal. And then, yeah, you mentioned a quadruplex,

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Speaker 1: that's an excellent choice. We we love that idea because

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Speaker 1: you can still get conventional financing, a conventional loan for

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Speaker 1: a home that's up to four units. So basically you're

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Speaker 1: in a sweet spot there. If you tried to go

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Speaker 1: any bigger, you would need to get a different kind

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Speaker 1: of loan that is going to come with worse terms

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Speaker 1: for you in all likelihood. So yeah, you're you're definitely

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Speaker 1: jumping in with both feet here by going by going

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Speaker 1: with a larger multi family property as opposed to you know,

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Speaker 1: something like a single family home. But we're cool with

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Speaker 1: that because yeah, it sounds like you and your fiance

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Speaker 1: you're both in really strong financial positions. You've been accident

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Speaker 1: retiring and getting that match doing the right thing for

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Speaker 1: a whole lot of years. You already kind of know

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Speaker 1: what you're doing on the house hacking front. This is

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Speaker 1: just expanding basically out that house hacking business that you've

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Speaker 1: kind of already begune totally. Yeah, but it can be

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Speaker 1: daunting when you purchase your first income property. Uh, just

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Speaker 1: just like you're talking about, Nicole. But it sounds like

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Speaker 1: that you are doing your due diligence. You know what

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Speaker 1: you want, you know what you're getting into, and so

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Speaker 1: the next step is shopping for the right property. And

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Speaker 1: like you mentioned, getting an agent is an important piece

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Speaker 1: to this puzzle. And it's it's best to get an

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Speaker 1: investor friendly agent, you know, because they're going to have

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Speaker 1: a better idea of what you might be looking for.

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Speaker 1: They often have access to deals that might not appear

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Speaker 1: on the MLS because of their connections. You want somebody

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Speaker 1: who's familiar with investors, not someone who's just looking to

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Speaker 1: buy like their dream home. Um, and you know, you

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Speaker 1: want to have done enough research on specific neighborhoods as

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Speaker 1: well as your rent prices. To know a good deal

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Speaker 1: when you see it, because in this market, it like

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Speaker 1: you're gonna need to pounce quickly when the right cash

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Speaker 1: filling property comes along. As soon as something comes available,

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Speaker 1: that's not the time for you to sit down, do

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Speaker 1: some research, start looking, you know, looking at comps. By

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Speaker 1: that point, you you want to have already done the

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Speaker 1: research and to already know what it is that you're

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Speaker 1: looking at the minute that you see it. You want

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Speaker 1: to make sure that when that property comes up for

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Speaker 1: sale that you say, boom, that's a deal. I know

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Speaker 1: it because I've done so much freaking research about this

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Speaker 1: neighborhood that it stands out like a store thomp exactly.

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Speaker 1: And it's important to to think through, like no in advance,

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Speaker 1: how much work that you are willing to put in

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Speaker 1: uh and what you are capable of if you're willing

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Speaker 1: to take on subcontractors to finish out certain rooms, if

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Speaker 1: there's some work that needs to be done on the property,

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Speaker 1: because that will also be valuable time that's on your side.

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Speaker 1: With the market that we're in, you don't have days

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Speaker 1: and weeks like we used to ten years ago. Where

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Speaker 1: properties just sat there and you got to, you know,

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Speaker 1: casually peruse the listings and see what's available that is

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Speaker 1: just not the situation, that is not the current environ

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Speaker 1: mints um. And then one other thing too I wanted

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Speaker 1: to mention is keep in mind that running a room

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Speaker 1: out on Airbnb it's gonna be a little bit different

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Speaker 1: than renting out and dealing with full time tenants. You're

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Speaker 1: used to having an intermediary Airbnb rate your buyers right

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Speaker 1: just from previous stays that they've had with other hosts.

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Speaker 1: But at this point you're gonna need to take a

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Speaker 1: more active approach and screening and managing. We've talked about

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Speaker 1: this before, but we think maybe like n of the

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Speaker 1: battle of of having a stress free investment property comes

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Speaker 1: down to the tenants and the amount of screening that

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Speaker 1: you've done on the front end. And so we actually

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Speaker 1: talked about that a good bit back in episode two

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Speaker 1: sixty nine, where we talked about how you can effectively

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Speaker 1: manage rental units, and oftentimes that comes down to the

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Speaker 1: quality of the tenants that you have in there. Yeah,

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Speaker 1: good tenant, easy life, bad tenant, hard life. I think

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Speaker 1: it's really that simple. It really is and so you

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Speaker 1: want to make sure that you're you know, crossing your

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Speaker 1: teas down your eyes when it comes to screening tenants. Well,

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Speaker 1: and yeah, that episode will will help you know exactly

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Speaker 1: how to do that. And Matt Nicole asked one more

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Speaker 1: question about printers, So kind of a total departure from

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Speaker 1: by the way, best of luck in Nicole in in

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Speaker 1: the quadplex hunt and finding something that works for you

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Speaker 1: that's cash flow positive because it can be just a

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Speaker 1: huge boon to your monthly income and to your ultimate

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Speaker 1: ability to grow your net worth by having a rental

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Speaker 1: property like this in your life. But onto that printer, Matt, uh,

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Speaker 1: the Epson Ego Tank. It's a great line of printers.

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00:20:20,560 --> 00:20:23,240
Speaker 1: We kind of like what they're doing. And Nicole mentioned

431
00:20:23,240 --> 00:20:25,600
Speaker 1: that these printers are expensive, and yeah, the printers actually

432
00:20:25,680 --> 00:20:29,680
Speaker 1: do cost more than most printers, but that's because most

433
00:20:29,720 --> 00:20:33,439
Speaker 1: printer manufacturers they charge less than the cost of the

434
00:20:33,480 --> 00:20:35,399
Speaker 1: printer to you. So maybe you get a printer for

435
00:20:35,400 --> 00:20:37,680
Speaker 1: thirty or forty bucks and you're like, what a deal.

436
00:20:38,040 --> 00:20:39,640
Speaker 1: But the problem is when you have to replace inc

437
00:20:39,800 --> 00:20:41,480
Speaker 1: it costs an arm and a leg, and that is

438
00:20:41,520 --> 00:20:45,399
Speaker 1: where most printer manufacturers make all their money. Epson is

439
00:20:45,480 --> 00:20:48,399
Speaker 1: kind of doing the opposite right there, actually making money

440
00:20:48,440 --> 00:20:50,800
Speaker 1: on the printer they sell you on like basically everyone

441
00:20:50,800 --> 00:20:52,679
Speaker 1: else in the business, and then they're selling you the

442
00:20:52,720 --> 00:20:55,960
Speaker 1: ink at a fair ridiculously low price. And yeah, we

443
00:20:56,000 --> 00:20:58,119
Speaker 1: like that model a whole lot better. And when it

444
00:20:58,119 --> 00:21:01,120
Speaker 1: comes to the specific model though, Epston Ego Tank, well,

445
00:21:01,359 --> 00:21:04,440
Speaker 1: different models come with different features, so we just suggest

446
00:21:04,520 --> 00:21:06,840
Speaker 1: choosing the one that has the features that you need.

447
00:21:07,200 --> 00:21:09,960
Speaker 1: Um Consumer Reports is a great place to read reviews

448
00:21:10,200 --> 00:21:11,960
Speaker 1: to see which one might make the most sense for you.

449
00:21:12,240 --> 00:21:13,760
Speaker 1: But the great thing about going with a printer like

450
00:21:13,800 --> 00:21:15,800
Speaker 1: that is that you're gonna be saving money every single

451
00:21:15,840 --> 00:21:18,320
Speaker 1: time that you hit print. So Nicole, good luck with

452
00:21:18,359 --> 00:21:21,600
Speaker 1: house hacking. Good luck with buying the right printer. By

453
00:21:21,640 --> 00:21:24,280
Speaker 1: the way, we had house hacking legend Craig Curlap on

454
00:21:24,320 --> 00:21:26,760
Speaker 1: the show back a while back, and you know what,

455
00:21:26,800 --> 00:21:28,800
Speaker 1: we've got an extra book line around, so we'll we'll

456
00:21:28,800 --> 00:21:30,720
Speaker 1: send that out to you this week. His book offers

457
00:21:30,720 --> 00:21:33,200
Speaker 1: a lot of helpful strategies when it comes to house hacking,

458
00:21:33,240 --> 00:21:36,440
Speaker 1: so hopefully it'll help you as you continue to progress

459
00:21:36,480 --> 00:21:38,560
Speaker 1: in this direction. To all right, let's keep moving, let's

460
00:21:38,560 --> 00:21:41,520
Speaker 1: get to that question about student loans and the ability

461
00:21:41,640 --> 00:21:45,639
Speaker 1: to contribute to a roth ira. Hi, man Joel, my

462
00:21:45,760 --> 00:21:48,520
Speaker 1: name is Mad from Scream, Pennsylvania. I have a question

463
00:21:48,520 --> 00:21:51,920
Speaker 1: about investing. Do the student loans is in my wife

464
00:21:51,920 --> 00:21:55,360
Speaker 1: and I his best interest to file married but separate.

465
00:21:55,760 --> 00:21:58,480
Speaker 1: The payments when they start back up would really skyrocket

466
00:21:58,480 --> 00:22:02,359
Speaker 1: if we file jointly. As a result, I can't contribute

467
00:22:02,359 --> 00:22:05,240
Speaker 1: to a rot diarra since I have earned income of

468
00:22:05,280 --> 00:22:08,000
Speaker 1: more than ten thou dollars. I don't want to wait

469
00:22:08,080 --> 00:22:10,960
Speaker 1: until the loans are paid off before I start investing.

470
00:22:11,440 --> 00:22:13,600
Speaker 1: What do you think is the best option for someone

471
00:22:13,720 --> 00:22:17,520
Speaker 1: in my scenario in regards to investing. Once the loan

472
00:22:17,720 --> 00:22:21,000
Speaker 1: is paid off, I would start contributing to a roth ira.

473
00:22:21,640 --> 00:22:23,320
Speaker 1: All right, Matt. We're just a couple of weeks away

474
00:22:23,320 --> 00:22:25,760
Speaker 1: from the tax filing deadline, and Matt has a great

475
00:22:25,800 --> 00:22:28,480
Speaker 1: question here that is affecting more and more people. Really,

476
00:22:28,880 --> 00:22:32,080
Speaker 1: student loans are the number one reason that married couples

477
00:22:32,320 --> 00:22:35,680
Speaker 1: decided to file separately, whereas normally that's not the best

478
00:22:35,680 --> 00:22:38,439
Speaker 1: course of action. Specifically, when two people get married and

479
00:22:38,600 --> 00:22:41,280
Speaker 1: one person has like a ton of student loans, sometimes

480
00:22:41,280 --> 00:22:43,280
Speaker 1: it makes sense to file separately. In order to keep

481
00:22:43,320 --> 00:22:46,159
Speaker 1: that payment low. And that's you know, because the federal

482
00:22:46,200 --> 00:22:49,320
Speaker 1: student loan repayment plans will they base your monthly payment

483
00:22:49,480 --> 00:22:53,120
Speaker 1: on your income, and you know, filing separately income right,

484
00:22:53,520 --> 00:22:55,679
Speaker 1: Filing separately means that the payment is going to be

485
00:22:55,680 --> 00:22:58,679
Speaker 1: based on the borrowers separate that income out right. But

486
00:22:58,720 --> 00:23:01,760
Speaker 1: if you guys decide to file jointly, now it's based

487
00:23:01,760 --> 00:23:04,560
Speaker 1: on the overall household income, and that can throw a

488
00:23:04,600 --> 00:23:06,480
Speaker 1: wrench int to things, right, that can make your monthly

489
00:23:06,520 --> 00:23:09,639
Speaker 1: payment skyrocket depending on what it looks like when you

490
00:23:09,640 --> 00:23:12,960
Speaker 1: combine your two salaries as you fire your taxes. That's right. Yeah,

491
00:23:12,960 --> 00:23:15,159
Speaker 1: So the great thing about marrying filing separately is that

492
00:23:15,200 --> 00:23:18,600
Speaker 1: you can keep that student loan payment more reasonable. For

493
00:23:18,600 --> 00:23:20,640
Speaker 1: a lot of folks, that not only helps every single month,

494
00:23:20,680 --> 00:23:23,160
Speaker 1: but it can also mean a bigger chunk of your

495
00:23:23,160 --> 00:23:26,280
Speaker 1: loans potentially getting forgiven down the road if you're a

496
00:23:26,280 --> 00:23:29,080
Speaker 1: government or a nonprofit worker in the Public Service Loan

497
00:23:29,119 --> 00:23:33,560
Speaker 1: Forgiveness Program the PSLF program. But there are some downsides

498
00:23:33,600 --> 00:23:36,240
Speaker 1: as well, like, for instance, it disqualifies you from tax

499
00:23:36,240 --> 00:23:40,200
Speaker 1: write offs like the student loan interest deduction. Another downside

500
00:23:40,359 --> 00:23:43,880
Speaker 1: is that you become ineligible to make RATH contributions if

501
00:23:43,880 --> 00:23:46,399
Speaker 1: you're a g I, if you're adjusted gross income, if

502
00:23:46,440 --> 00:23:49,359
Speaker 1: it's more than ten thousand dollars. That's obviously a huge

503
00:23:49,359 --> 00:23:51,480
Speaker 1: bumber in our book because we love the rath I

504
00:23:51,600 --> 00:23:54,840
Speaker 1: array so incredibly much. But even though you can't contribute

505
00:23:54,840 --> 00:23:58,399
Speaker 1: to our favorite retirement account, Matt, that doesn't mean that

506
00:23:58,440 --> 00:24:01,000
Speaker 1: you can't invest at all. Right, I think you could easily.

507
00:24:01,080 --> 00:24:03,960
Speaker 1: Let's become an excuse like I can't contribute to a ROTH,

508
00:24:04,080 --> 00:24:05,800
Speaker 1: So I guess I'm not going to invest for the

509
00:24:05,840 --> 00:24:08,480
Speaker 1: time being. But no, that's not the route you should take.

510
00:24:08,520 --> 00:24:11,560
Speaker 1: And so the best place really to be investing, Matt,

511
00:24:11,640 --> 00:24:14,040
Speaker 1: is in your workplace retirement account. If you've got one,

512
00:24:14,280 --> 00:24:16,440
Speaker 1: take whatever you're going to put into a roth ira

513
00:24:16,480 --> 00:24:19,280
Speaker 1: A and stick it in there instead. Hopefully you've got

514
00:24:19,320 --> 00:24:21,760
Speaker 1: access to a WRATH four oh one K. Even though

515
00:24:21,760 --> 00:24:24,200
Speaker 1: you can't open up a wrath I r A. And yeah,

516
00:24:24,240 --> 00:24:26,840
Speaker 1: if you have your own business, look into opening a

517
00:24:26,880 --> 00:24:29,040
Speaker 1: sep ira A or a solo four oh one K.

518
00:24:29,520 --> 00:24:31,919
Speaker 1: Those are great accounts where you can stash quite a

519
00:24:31,960 --> 00:24:34,760
Speaker 1: bit of money away from your future too. So while

520
00:24:34,760 --> 00:24:36,560
Speaker 1: we love the WROTH, it's not like that's the only

521
00:24:36,600 --> 00:24:38,879
Speaker 1: option out there here at how the money we take

522
00:24:38,920 --> 00:24:41,320
Speaker 1: advantage of the solo four one k it's been great

523
00:24:41,320 --> 00:24:43,320
Speaker 1: for us. It's allowed us to talk away money as

524
00:24:43,320 --> 00:24:46,000
Speaker 1: a business and as individuals. And then, yeah, once you've

525
00:24:46,040 --> 00:24:50,280
Speaker 1: exhausted those tax advantaged accounts, it's totally fine to stick

526
00:24:50,480 --> 00:24:53,840
Speaker 1: some extra money into even a taxable brokerage account. Right.

527
00:24:53,960 --> 00:24:55,679
Speaker 1: It's not gonna be quite as good for you from

528
00:24:55,720 --> 00:24:58,159
Speaker 1: a tax perspective, but it does have the benefit of

529
00:24:58,200 --> 00:25:00,920
Speaker 1: additional flexibility of what you can do with that money

530
00:25:00,960 --> 00:25:03,280
Speaker 1: in the future because yeah, you don't have to hold

531
00:25:03,320 --> 00:25:05,920
Speaker 1: it until your in your sixties, that's right. Yeah, And

532
00:25:06,040 --> 00:25:08,320
Speaker 1: once those student loans are paid off, Matt and you

533
00:25:08,320 --> 00:25:11,560
Speaker 1: start to file jointly again, for the many benefits that

534
00:25:11,600 --> 00:25:14,080
Speaker 1: come with filing jointly, you can look forward to those

535
00:25:14,200 --> 00:25:17,720
Speaker 1: years of rath Eyrie contributions. It's also important to mention

536
00:25:17,760 --> 00:25:20,159
Speaker 1: that lots of folks in this sort of situation they

537
00:25:20,160 --> 00:25:23,359
Speaker 1: should really consider sitting down with a tax expert. And

538
00:25:23,440 --> 00:25:26,359
Speaker 1: the reason is because these seemingly small decisions about how

539
00:25:26,400 --> 00:25:29,000
Speaker 1: to file or which accounts to contribute to, they can

540
00:25:29,040 --> 00:25:32,080
Speaker 1: be the difference between like a reasonable tax bill and

541
00:25:32,400 --> 00:25:35,040
Speaker 1: an astronomical one. It's helpful to know all of the

542
00:25:35,040 --> 00:25:39,160
Speaker 1: different trade offs that you're making by choosing to file separately. Uh,

543
00:25:39,200 --> 00:25:41,720
Speaker 1: and so don't hesitate to find a pro if that

544
00:25:41,720 --> 00:25:44,239
Speaker 1: would make you feel a bit more comfortable. And by

545
00:25:44,240 --> 00:25:46,479
Speaker 1: the way, student loan payments are starting up at the

546
00:25:46,640 --> 00:25:50,000
Speaker 1: end of the month, So that's just a polite heads

547
00:25:50,040 --> 00:25:54,840
Speaker 1: up to everyone out there to maybe start preparing something

548
00:25:54,960 --> 00:25:57,880
Speaker 1: exactly exactly. I think somehow money listeners just cur stay

549
00:25:57,880 --> 00:25:59,359
Speaker 1: in their car while they were listening to us, But

550
00:25:59,680 --> 00:26:01,960
Speaker 1: that's a point, Matt. It's a good reminder, and for

551
00:26:02,080 --> 00:26:04,720
Speaker 1: some of our listeners they would be better served by

552
00:26:04,960 --> 00:26:07,719
Speaker 1: refinancing their student loan going into a private student loan

553
00:26:07,760 --> 00:26:10,080
Speaker 1: with a lower interest rate. Not everybody, but we actually

554
00:26:10,119 --> 00:26:12,800
Speaker 1: have an article on the site like giving you advice

555
00:26:12,840 --> 00:26:15,000
Speaker 1: on whether or not it's right for you. And also

556
00:26:15,200 --> 00:26:17,920
Speaker 1: Splash Financial has offered how to money listeners in particular

557
00:26:18,080 --> 00:26:20,600
Speaker 1: a special deal if you end up refinancing through their site.

558
00:26:20,840 --> 00:26:23,080
Speaker 1: We'll put that link in the show notes too. All right, Matt,

559
00:26:23,080 --> 00:26:25,359
Speaker 1: We've got more questions to get to, including you know,

560
00:26:25,400 --> 00:26:28,200
Speaker 1: we think hs a's rockets another retirement account that we love.

561
00:26:28,400 --> 00:26:30,760
Speaker 1: But what if the one that your employer offers is

562
00:26:30,800 --> 00:26:33,720
Speaker 1: really stinky. We'll talk about that and more right after

563
00:26:33,720 --> 00:26:45,399
Speaker 1: this break. We're back from the break. We are chugging along.

564
00:26:45,480 --> 00:26:49,480
Speaker 1: Let's get to our fourth listener question. And unfortunately this

565
00:26:49,480 --> 00:26:51,640
Speaker 1: one comes from a listener who has recently gotten laid off.

566
00:26:51,720 --> 00:26:54,720
Speaker 1: Let's hear it either manage all. This is also Matt

567
00:26:54,840 --> 00:26:58,239
Speaker 1: from Salt Lake City, Utah. My question has to do

568
00:26:58,280 --> 00:27:02,640
Speaker 1: with tapping into retirement funds early and with either withdrawing

569
00:27:02,680 --> 00:27:06,560
Speaker 1: those funds early or taking out a loan against those funds.

570
00:27:07,280 --> 00:27:11,360
Speaker 1: I was recently laid off from my job on February

571
00:27:11,359 --> 00:27:15,680
Speaker 1: and my final paycheck just processed here on March fifteen.

572
00:27:16,520 --> 00:27:20,680
Speaker 1: I'll include a few relevant details in the email. Also,

573
00:27:20,720 --> 00:27:22,800
Speaker 1: if you're ever in Salt Lake, give me a shout

574
00:27:23,200 --> 00:27:26,400
Speaker 1: and uh I will kind of show you around all

575
00:27:26,440 --> 00:27:30,520
Speaker 1: the great microbreweries here. I love the show, and uh,

576
00:27:31,040 --> 00:27:33,280
Speaker 1: thanks for all you do, Matt. I always hate to

577
00:27:33,280 --> 00:27:35,800
Speaker 1: hear stuff like this. It's never fun to lose a

578
00:27:35,880 --> 00:27:38,919
Speaker 1: job of so Matt, really sorry that this happened to you.

579
00:27:38,920 --> 00:27:41,080
Speaker 1: Sorry about the job loss, and and it can be

580
00:27:41,080 --> 00:27:43,400
Speaker 1: a shocker, not just financially but emotionally, like it's kind

581
00:27:43,400 --> 00:27:45,919
Speaker 1: of like a gut punch, for sure. And I know

582
00:27:45,960 --> 00:27:48,479
Speaker 1: what that's like, because, yeah, my dad got laid off

583
00:27:48,480 --> 00:27:50,600
Speaker 1: when I was a kid, and it's just still one

584
00:27:50,600 --> 00:27:52,960
Speaker 1: of the clearest memories that I have of childhood and

585
00:27:53,040 --> 00:27:55,040
Speaker 1: just how hard that was for our entire family, but

586
00:27:55,280 --> 00:27:58,040
Speaker 1: specifically for my dad too. It's just as a tough

587
00:27:58,080 --> 00:28:02,200
Speaker 1: emotional blow, especially when you're the main breadwinner. So but Matt,

588
00:28:02,280 --> 00:28:04,280
Speaker 1: just know that you can definitely bounce back from this.

589
00:28:04,280 --> 00:28:05,919
Speaker 1: This is this is not a death sentance. I think

590
00:28:05,960 --> 00:28:08,920
Speaker 1: sometimes feels like that. No, of course not. Also thought

591
00:28:08,960 --> 00:28:11,240
Speaker 1: you were gonna lighten the mood by calling him also Matt.

592
00:28:11,520 --> 00:28:13,920
Speaker 1: That's that's how he introduced that we're going to bust

593
00:28:13,920 --> 00:28:16,919
Speaker 1: out a dad joke. Hey, also Matt. We can call

594
00:28:17,000 --> 00:28:19,600
Speaker 1: him that for the rest of the episode. But you know,

595
00:28:19,680 --> 00:28:21,359
Speaker 1: on the bright side of things, I like to find

596
00:28:21,359 --> 00:28:23,800
Speaker 1: a silver line because I'm kind of an optimist. Always important.

597
00:28:24,119 --> 00:28:25,960
Speaker 1: This is, if there ever was a time to get

598
00:28:26,000 --> 00:28:28,439
Speaker 1: laid off, like now might be the best time, because

599
00:28:28,480 --> 00:28:30,480
Speaker 1: the job market is just kind of like running on

600
00:28:30,520 --> 00:28:33,800
Speaker 1: all cylinders. And so yeah, the opportunities out there for

601
00:28:34,000 --> 00:28:38,480
Speaker 1: also Matt are are amazing, I think, And so yeah,

602
00:28:38,480 --> 00:28:41,680
Speaker 1: the opportunity to find something else in in short order,

603
00:28:41,960 --> 00:28:44,160
Speaker 1: are are really good? I think that's true. Yeah. With

604
00:28:44,240 --> 00:28:46,760
Speaker 1: the you know, like we're seeing so many job market openings,

605
00:28:46,880 --> 00:28:49,000
Speaker 1: and with the just the market overall just being as

606
00:28:49,040 --> 00:28:51,240
Speaker 1: hot as it is, there are likely gonna be more

607
00:28:51,240 --> 00:28:53,520
Speaker 1: opportunities out there for you than they normally would be.

608
00:28:53,800 --> 00:28:55,680
Speaker 1: You know, not to mention that with working from home

609
00:28:55,720 --> 00:28:58,400
Speaker 1: you can get a job likely with a wider variety

610
00:28:58,680 --> 00:29:01,760
Speaker 1: of companies. You're not gonna necessarily be confined just to

611
00:29:01,800 --> 00:29:04,400
Speaker 1: the local ones near where you live. That very well

612
00:29:04,440 --> 00:29:06,400
Speaker 1: may have been how you you found your the job

613
00:29:06,440 --> 00:29:10,080
Speaker 1: that you were currently in, but that's no longer a constraint.

614
00:29:10,640 --> 00:29:12,280
Speaker 1: But first things first, let's get to a few things

615
00:29:12,320 --> 00:29:15,480
Speaker 1: that we would recommend for anybody in this situation to do.

616
00:29:16,000 --> 00:29:17,880
Speaker 1: First of all, getting on a bare bones budget. We've

617
00:29:17,880 --> 00:29:20,280
Speaker 1: talked about this back in episode three sixty two. This

618
00:29:20,320 --> 00:29:23,840
Speaker 1: is incredibly crucial. Uh. Matt mentioned in his email that

619
00:29:23,880 --> 00:29:26,120
Speaker 1: this is something that they have essentially already done. They

620
00:29:26,120 --> 00:29:28,680
Speaker 1: have slashed their spending, but it is really important to

621
00:29:28,800 --> 00:29:32,320
Speaker 1: know what it is that you are capable uh living on.

622
00:29:32,640 --> 00:29:35,240
Speaker 1: This is a situation where in MAT's case, it was

623
00:29:35,400 --> 00:29:38,840
Speaker 1: necessary right but if you weren't already in that situation,

624
00:29:39,320 --> 00:29:42,280
Speaker 1: having the knowledge and the comfort in knowing that you

625
00:29:42,280 --> 00:29:45,080
Speaker 1: can make some serious changes like that to your budget,

626
00:29:45,120 --> 00:29:46,760
Speaker 1: I think would bring a lot of peace. I think

627
00:29:46,800 --> 00:29:49,200
Speaker 1: when you find yourself in a situation like this, it

628
00:29:49,240 --> 00:29:51,320
Speaker 1: necessitates it, right, Like, you don't really have a choice.

629
00:29:51,360 --> 00:29:53,680
Speaker 1: You are looking for ways to reduce your spending in

630
00:29:53,720 --> 00:29:56,760
Speaker 1: a significant way. But if you had not already done that,

631
00:29:56,800 --> 00:29:58,840
Speaker 1: I think you could find yourself in a really stressful

632
00:29:58,880 --> 00:30:01,680
Speaker 1: position where you might find yourself making those cuts more

633
00:30:01,720 --> 00:30:03,760
Speaker 1: out of desperation, as you know, compared to just like

634
00:30:03,800 --> 00:30:05,880
Speaker 1: a plan of attack. And that's the kind of situation

635
00:30:05,920 --> 00:30:08,160
Speaker 1: we want to see more of our listeners in, one

636
00:30:08,280 --> 00:30:10,080
Speaker 1: where it feels like that they are more in control

637
00:30:10,120 --> 00:30:11,560
Speaker 1: than one where it feels like that they have to

638
00:30:11,720 --> 00:30:14,920
Speaker 1: more instinctively react. Having that kind of bare bones budget

639
00:30:14,960 --> 00:30:17,840
Speaker 1: in your back pocket in case something difficult happens, no

640
00:30:17,880 --> 00:30:19,600
Speaker 1: matter what it is, whether it's a job loss, whether

641
00:30:19,600 --> 00:30:21,640
Speaker 1: it's a loss of a loved one. In particular, in

642
00:30:21,680 --> 00:30:24,160
Speaker 1: the event of a job loss, it just provides, yeah,

643
00:30:24,280 --> 00:30:26,800
Speaker 1: so much help, so you can basically immediately switch over

644
00:30:27,040 --> 00:30:29,960
Speaker 1: to that budget starts saving money every month because yeah,

645
00:30:30,000 --> 00:30:32,400
Speaker 1: every dollar accounts in a situation like this totally. And

646
00:30:32,440 --> 00:30:34,600
Speaker 1: then filing for unemployment that's the top priority as well,

647
00:30:34,680 --> 00:30:38,240
Speaker 1: which Matt has also done. But that's often that's just

648
00:30:38,240 --> 00:30:39,720
Speaker 1: gonna be a stop gap because it's not going to

649
00:30:39,800 --> 00:30:42,760
Speaker 1: come close to probably equaling what your normal pay was,

650
00:30:42,880 --> 00:30:45,400
Speaker 1: and plus it's not gonna last forever. But definitely make

651
00:30:45,440 --> 00:30:47,200
Speaker 1: sure that you do that as well, for sure. Yeah,

652
00:30:47,200 --> 00:30:49,720
Speaker 1: but but really, right now it's a time to batten

653
00:30:49,760 --> 00:30:52,640
Speaker 1: down the hatches. And you know, another thing that might

654
00:30:52,720 --> 00:30:54,680
Speaker 1: help Matt and his family right now is to to

655
00:30:54,800 --> 00:30:57,120
Speaker 1: even slow down paying off some of their debts for

656
00:30:57,160 --> 00:31:00,680
Speaker 1: the time being until income starts flowing again. Basically, if

657
00:31:00,680 --> 00:31:03,560
Speaker 1: you've been paying more on certain debts, only pay the

658
00:31:03,600 --> 00:31:05,600
Speaker 1: minimum for a little while, because, yeah, you want to

659
00:31:05,640 --> 00:31:07,959
Speaker 1: keep more dollars in your savings account so you have

660
00:31:08,040 --> 00:31:11,160
Speaker 1: more months of financial runway. And and Matt fortunately mentioned

661
00:31:11,160 --> 00:31:13,600
Speaker 1: in his email actually that that his wife is just

662
00:31:13,640 --> 00:31:16,360
Speaker 1: about to graduate in another month, which could mean her

663
00:31:16,360 --> 00:31:19,360
Speaker 1: bringing home some significant bacon, right depending on the career

664
00:31:19,400 --> 00:31:22,280
Speaker 1: path that she is choosing. That's that's just another bright

665
00:31:22,280 --> 00:31:25,320
Speaker 1: spot here that she is almost almost cool. That's an

666
00:31:25,320 --> 00:31:26,960
Speaker 1: expense that you're getting rid of well, at the same

667
00:31:26,960 --> 00:31:29,280
Speaker 1: time you're adding income and that's a big bright spot.

668
00:31:29,480 --> 00:31:32,160
Speaker 1: But but let's get to your specific question, Matt. You

669
00:31:32,160 --> 00:31:34,320
Speaker 1: you talked about, you know, taking out a loan against

670
00:31:34,400 --> 00:31:37,880
Speaker 1: your retirement accounts. Well, here's the thing. You're not going

671
00:31:37,960 --> 00:31:40,000
Speaker 1: to be able to take a four one k loan

672
00:31:40,160 --> 00:31:43,280
Speaker 1: now that you aren't with that employer anymore. And so yeah,

673
00:31:43,280 --> 00:31:46,080
Speaker 1: the only option that you have really is to withdraw

674
00:31:46,160 --> 00:31:49,600
Speaker 1: those funds altogether. And that move is going to trigger

675
00:31:49,760 --> 00:31:52,640
Speaker 1: a tax bill along with a ten percent penalty, and

676
00:31:52,720 --> 00:31:55,560
Speaker 1: so yeah, this is something we want you to avoid

677
00:31:55,880 --> 00:31:57,480
Speaker 1: at all costs. I mean, we want you to take

678
00:31:57,760 --> 00:32:01,240
Speaker 1: basically every other measure that you can to save more

679
00:32:01,320 --> 00:32:04,479
Speaker 1: of your money or to find more income before you

680
00:32:04,520 --> 00:32:07,400
Speaker 1: even consider tapping retirement accounts. That's kind of like a

681
00:32:07,760 --> 00:32:09,920
Speaker 1: last case scenario, a last each effort, if you just

682
00:32:09,960 --> 00:32:11,440
Speaker 1: have to put like food on the table or keep

683
00:32:11,440 --> 00:32:13,600
Speaker 1: a roof of your head in our opinion, Yeah, and

684
00:32:13,680 --> 00:32:16,520
Speaker 1: for anybody else out there who might have alone against

685
00:32:16,520 --> 00:32:18,760
Speaker 1: the four ohn k, keep in mind that oftentimes if

686
00:32:18,800 --> 00:32:22,040
Speaker 1: you were to get let go, uh, that total would

687
00:32:22,040 --> 00:32:24,280
Speaker 1: be due at the time of your termination, and so

688
00:32:24,360 --> 00:32:27,120
Speaker 1: oftentimes you can be in a really difficult position to

689
00:32:27,120 --> 00:32:29,240
Speaker 1: where not only are you going to be getting future money,

690
00:32:29,240 --> 00:32:31,360
Speaker 1: but you also owe a bunch more to your your

691
00:32:31,360 --> 00:32:33,520
Speaker 1: retirement plan. But you let's talk about some of those

692
00:32:33,560 --> 00:32:37,200
Speaker 1: actual alternatives to yet tapping some of those retirement accounts,

693
00:32:37,400 --> 00:32:40,760
Speaker 1: because hopefully that's not a situation that Matt finds himself in, right,

694
00:32:40,800 --> 00:32:43,280
Speaker 1: because this would put his financial future in jeopardy, because

695
00:32:43,280 --> 00:32:45,840
Speaker 1: this is money that was allocated for for decades down

696
00:32:45,840 --> 00:32:48,440
Speaker 1: the road, it is now being spent in the here

697
00:32:48,480 --> 00:32:50,360
Speaker 1: and now. Uh. And not just that, it's it's like

698
00:32:50,400 --> 00:32:52,400
Speaker 1: you're lighting some of your your future dollar bills on

699
00:32:52,440 --> 00:32:55,120
Speaker 1: fire in order to get them into your hands right now, immediately.

700
00:32:55,320 --> 00:32:57,480
Speaker 1: And so we would rather you get those funds from

701
00:32:57,520 --> 00:33:01,840
Speaker 1: just a slew of other places, include tapping your home equity.

702
00:33:02,160 --> 00:33:05,400
Speaker 1: It sucks, but it's better than the alternative. I mentioned

703
00:33:05,440 --> 00:33:07,520
Speaker 1: in his email that he does own a home, and

704
00:33:07,520 --> 00:33:09,840
Speaker 1: so hopefully you have a good amount of equity built up.

705
00:33:10,200 --> 00:33:12,040
Speaker 1: That's gonna be a much more affordable way to get

706
00:33:12,080 --> 00:33:15,000
Speaker 1: your hands on that money. Plus it's gonna be it's

707
00:33:15,000 --> 00:33:17,120
Speaker 1: gonna cost you a lot less in interest as well.

708
00:33:17,560 --> 00:33:19,360
Speaker 1: And then something else to keep in mind, the one

709
00:33:19,360 --> 00:33:22,840
Speaker 1: retirement account that you can touch is if you've got

710
00:33:22,880 --> 00:33:25,800
Speaker 1: a roth ira A we'd still rather that be an

711
00:33:25,800 --> 00:33:28,400
Speaker 1: option of last resort. But taking out some of those

712
00:33:28,400 --> 00:33:31,360
Speaker 1: contributions it's not going to result in a massive tax bill.

713
00:33:31,640 --> 00:33:33,120
Speaker 1: It's not gonna result and you're getting hit with a

714
00:33:33,120 --> 00:33:35,720
Speaker 1: ten percent penalty because you've already paid tax on the

715
00:33:35,720 --> 00:33:38,360
Speaker 1: dollars that you've contributed to your roth ira. But keep

716
00:33:38,360 --> 00:33:40,560
Speaker 1: in mind, only take out what it is that you

717
00:33:40,640 --> 00:33:43,880
Speaker 1: need and just do your your very best to leave

718
00:33:43,920 --> 00:33:46,120
Speaker 1: the rest intact. Because you know, if you end up

719
00:33:46,120 --> 00:33:48,239
Speaker 1: having to take a few thousand bucks out of your

720
00:33:48,240 --> 00:33:50,040
Speaker 1: wrath to put food on the table to keep a

721
00:33:50,080 --> 00:33:52,880
Speaker 1: roof of your head, that's okay, we would rather you not,

722
00:33:52,920 --> 00:33:55,040
Speaker 1: but it's not something that you're gonna pay for in

723
00:33:55,080 --> 00:33:58,520
Speaker 1: a significant way. Just don't touch the workplace account because

724
00:33:58,640 --> 00:34:01,840
Speaker 1: that is a method where you're really gonna get hammered. Yeah,

725
00:34:01,840 --> 00:34:04,000
Speaker 1: I feel like taking money out of your former four

726
00:34:04,000 --> 00:34:07,360
Speaker 1: oh one k just basically taking early withdraws is it's

727
00:34:07,400 --> 00:34:09,080
Speaker 1: kind of like sticking both hands on a hot stove.

728
00:34:09,360 --> 00:34:11,439
Speaker 1: It's just like and leaving him there like that. That's

729
00:34:11,920 --> 00:34:14,400
Speaker 1: it's kind of like setting your financial life on fire.

730
00:34:14,760 --> 00:34:18,000
Speaker 1: For money that eating now, it's it's really hamstring your

731
00:34:18,000 --> 00:34:20,920
Speaker 1: ability to say for your future self, and it's just

732
00:34:21,040 --> 00:34:24,799
Speaker 1: something that we recommend staying away from in almost every case.

733
00:34:25,000 --> 00:34:26,960
Speaker 1: And so, yeah, let's talk about healthcare just for a

734
00:34:26,960 --> 00:34:29,359
Speaker 1: second when it comes to Matt and his family. Matt,

735
00:34:29,440 --> 00:34:31,360
Speaker 1: because there's a good chance he's gonna be offered Cobra

736
00:34:31,440 --> 00:34:34,719
Speaker 1: coverage if he had a healthcare through his former employer.

737
00:34:35,239 --> 00:34:36,680
Speaker 1: And you know, we talked about that a little bit

738
00:34:36,680 --> 00:34:40,000
Speaker 1: with John's that Cobra Cobra coverage is expensive as all

739
00:34:40,000 --> 00:34:42,920
Speaker 1: get out. Potentially, you know, thousands of dollars in premiums

740
00:34:42,960 --> 00:34:45,000
Speaker 1: each month, that's what it could cost you. So the

741
00:34:45,000 --> 00:34:48,160
Speaker 1: better option for for Matt is is to head to

742
00:34:48,200 --> 00:34:50,640
Speaker 1: healthcare dot gov and to sign up in all likelihood

743
00:34:50,680 --> 00:34:54,000
Speaker 1: for a plan there, especially because after losing a job,

744
00:34:54,280 --> 00:34:57,359
Speaker 1: you qualify for a special enrollment period, which means that

745
00:34:57,400 --> 00:34:59,200
Speaker 1: you can sign up for a plan on Healthcare dot

746
00:34:59,200 --> 00:35:00,960
Speaker 1: go when you Otherwise, I just wouldn't be able to

747
00:35:01,200 --> 00:35:04,720
Speaker 1: because it's not open enrollment season. And considering the income

748
00:35:04,800 --> 00:35:07,960
Speaker 1: drop that Matt has sustained and the subsidies that are offered,

749
00:35:08,000 --> 00:35:10,319
Speaker 1: there's just a really good chance that he'll find a

750
00:35:10,360 --> 00:35:13,640
Speaker 1: solid plan with really low premiums that can keep his

751
00:35:13,680 --> 00:35:16,560
Speaker 1: family covered while not breaking the bank. That's right, So Matt,

752
00:35:16,600 --> 00:35:18,040
Speaker 1: thank you for that question, and we wish you the

753
00:35:18,080 --> 00:35:21,880
Speaker 1: absolute best of luck when it comes to finding a

754
00:35:21,920 --> 00:35:23,520
Speaker 1: new job. And you know what, this is one that

755
00:35:23,560 --> 00:35:26,120
Speaker 1: pays more, even like, hopefully that's a better scenario. What

756
00:35:26,160 --> 00:35:28,040
Speaker 1: I was gonna say too, is just maybe a job

757
00:35:28,080 --> 00:35:30,120
Speaker 1: that he finds some more fulfillment in, right, Like, maybe

758
00:35:30,120 --> 00:35:31,520
Speaker 1: he could even see this as a period of time

759
00:35:31,520 --> 00:35:33,239
Speaker 1: where he's able to re examine it, like this is

760
00:35:33,239 --> 00:35:36,480
Speaker 1: almost like a forced sabbatical where he's able to think

761
00:35:36,520 --> 00:35:38,520
Speaker 1: a little bit more about the type of work that

762
00:35:38,560 --> 00:35:40,920
Speaker 1: he's doing and the contribution that he's making to the world.

763
00:35:40,960 --> 00:35:42,920
Speaker 1: So again, we're trying to put a positive spend on

764
00:35:43,200 --> 00:35:45,600
Speaker 1: this for you, Matts, but we think that you've got

765
00:35:45,920 --> 00:35:48,160
Speaker 1: a great financial future ahead of you. And I will

766
00:35:48,160 --> 00:35:50,080
Speaker 1: say that ends up being the case for a lot

767
00:35:50,080 --> 00:35:51,600
Speaker 1: of people. I feel like I've seen that time and

768
00:35:51,600 --> 00:35:54,720
Speaker 1: time again to where people end up in a position

769
00:35:54,760 --> 00:35:57,200
Speaker 1: that is so much better after something like this. I

770
00:35:57,239 --> 00:35:58,719
Speaker 1: hope the same is true for Matt. I know one

771
00:35:58,719 --> 00:36:00,560
Speaker 1: of my one of my good friends, he's basically in

772
00:36:00,600 --> 00:36:02,399
Speaker 1: her dream job. She didn't think she wanted to leave

773
00:36:02,440 --> 00:36:05,080
Speaker 1: her last job, but she got laid off. It happened,

774
00:36:05,360 --> 00:36:08,600
Speaker 1: and now she's doing work that she loves even more.

775
00:36:08,719 --> 00:36:10,960
Speaker 1: She's super happy. I feel the same. I've seen that

776
00:36:11,000 --> 00:36:12,520
Speaker 1: time and time again, and I sure hope that's true

777
00:36:12,520 --> 00:36:14,600
Speaker 1: for Matt. But let's get to our last question of

778
00:36:14,640 --> 00:36:17,000
Speaker 1: this episode. This one is about health savings accounts, But

779
00:36:17,040 --> 00:36:20,440
Speaker 1: what if your employer has theirs with a crumby bank? Hi,

780
00:36:20,560 --> 00:36:23,200
Speaker 1: Joelan Matt. My name is Jessica and I'm calling from

781
00:36:23,200 --> 00:36:26,560
Speaker 1: Northeast Iowa. I recently started a new job and I'm

782
00:36:26,560 --> 00:36:28,759
Speaker 1: eligible for an h s A. I went to the

783
00:36:28,800 --> 00:36:30,759
Speaker 1: bank to set up my h s A account as

784
00:36:30,800 --> 00:36:33,799
Speaker 1: directed by the fiscal manager. I asked the bank if

785
00:36:33,840 --> 00:36:36,080
Speaker 1: there was a minimum I needed to have it saved

786
00:36:36,360 --> 00:36:39,360
Speaker 1: before I could start investing within that account. The banker

787
00:36:39,440 --> 00:36:41,719
Speaker 1: wasn't sure and said they would check and get back

788
00:36:41,719 --> 00:36:44,480
Speaker 1: to me. When they called back, the banker explained that

789
00:36:44,520 --> 00:36:48,440
Speaker 1: they don't offer investing options for their HSA accounts. I

790
00:36:48,520 --> 00:36:50,840
Speaker 1: already have an h s A from a previous employer

791
00:36:51,000 --> 00:36:53,480
Speaker 1: that I am investing in, so I asked my new

792
00:36:53,480 --> 00:36:56,120
Speaker 1: employer if I could use that account instead of the

793
00:36:56,120 --> 00:36:59,800
Speaker 1: one at their designated bank. They said, no, I'm wondering

794
00:36:59,800 --> 00:37:02,279
Speaker 1: if there is a way I can transfer money from

795
00:37:02,280 --> 00:37:04,920
Speaker 1: my new hs A account to my old h s

796
00:37:04,960 --> 00:37:07,440
Speaker 1: A account so I can take full advantage of the

797
00:37:07,480 --> 00:37:11,120
Speaker 1: tax benefits h s A allow for Thanks for producing

798
00:37:11,120 --> 00:37:13,399
Speaker 1: the pod I have learned so much listening to over

799
00:37:13,440 --> 00:37:17,200
Speaker 1: the years. Cheers. All right, Jessica, congrats on your new job.

800
00:37:17,480 --> 00:37:18,960
Speaker 1: It seems like this is a position that a lot

801
00:37:18,960 --> 00:37:22,400
Speaker 1: of folks are funding themselves in as folks are shifting careers,

802
00:37:22,440 --> 00:37:25,400
Speaker 1: as they're changing jobs. Uh. And I'm very glad to

803
00:37:25,400 --> 00:37:27,960
Speaker 1: hear that you've got access to a health savings account

804
00:37:27,960 --> 00:37:31,080
Speaker 1: and hs A. But it sucks that your h s

805
00:37:31,160 --> 00:37:33,880
Speaker 1: A is with a bank that won't allow you to invest.

806
00:37:34,520 --> 00:37:35,960
Speaker 1: But it's not the end of the world, and we

807
00:37:36,000 --> 00:37:39,400
Speaker 1: definitely have some solutions for you. First, explain to everyone

808
00:37:39,400 --> 00:37:42,960
Speaker 1: listening why it's so important to invest your hs A dollars.

809
00:37:43,040 --> 00:37:45,520
Speaker 1: And that's because it's fine for you to use your

810
00:37:45,600 --> 00:37:48,320
Speaker 1: hs A for near turn medical expenses if you must,

811
00:37:48,719 --> 00:37:51,000
Speaker 1: but it is a far better idea to use that

812
00:37:51,040 --> 00:37:54,279
Speaker 1: account as sort of like this undercover retirement account es

813
00:37:54,320 --> 00:37:56,440
Speaker 1: basically like if you use your hs A for just

814
00:37:56,480 --> 00:37:58,520
Speaker 1: kind of current health care expenses, it's like getting a

815
00:37:58,560 --> 00:38:02,719
Speaker 1: Tesla and going no faster than you're You're missing out

816
00:38:02,760 --> 00:38:04,280
Speaker 1: on the point of the vehicle. Or maybe a Ferrari

817
00:38:04,320 --> 00:38:06,240
Speaker 1: would even be a better example. Yeah, or like Formula

818
00:38:06,280 --> 00:38:08,680
Speaker 1: one car. Yeah, it's like, yeah, but I'm a govern

819
00:38:08,680 --> 00:38:10,360
Speaker 1: on it and it's only gonna go of fifty. It's like, no,

820
00:38:10,920 --> 00:38:13,640
Speaker 1: that that misses the entire point, the best parts of

821
00:38:13,640 --> 00:38:15,880
Speaker 1: the exactly. Yeah. Your h to say it does the

822
00:38:16,000 --> 00:38:18,600
Speaker 1: most good for you when you invest your money inside

823
00:38:18,600 --> 00:38:21,160
Speaker 1: of it, and so keeping it in cash it kind

824
00:38:21,160 --> 00:38:24,799
Speaker 1: of like hurts our hearts considering the massive triple tax

825
00:38:24,800 --> 00:38:27,200
Speaker 1: advantage that h s as offer. Uh, you want that

826
00:38:27,280 --> 00:38:29,440
Speaker 1: money growing, you don't want it sitting in their stagnant

827
00:38:29,680 --> 00:38:30,960
Speaker 1: And for all the other listeners out there, if you

828
00:38:31,000 --> 00:38:33,120
Speaker 1: want to know more about what makes hs A so

829
00:38:33,200 --> 00:38:36,200
Speaker 1: great and how to maximize their value, we would recommend

830
00:38:36,200 --> 00:38:38,440
Speaker 1: that you check out episode one oh five. I'm sure

831
00:38:38,520 --> 00:38:40,640
Speaker 1: a lot of folks in open enrollment period they see

832
00:38:40,640 --> 00:38:42,560
Speaker 1: the h s A option, they just kind of like

833
00:38:42,680 --> 00:38:44,840
Speaker 1: skip past it, they don't bother with it. That is

834
00:38:44,880 --> 00:38:48,000
Speaker 1: a mistake because the h s AS potentially the most

835
00:38:48,080 --> 00:38:50,960
Speaker 1: valuable retirement account you have access to leave you with

836
00:38:51,160 --> 00:38:54,080
Speaker 1: much more money in your future. So now that everyone

837
00:38:54,160 --> 00:38:56,680
Speaker 1: knows how they work. Back to your question, Jessica, if

838
00:38:56,719 --> 00:38:59,600
Speaker 1: if I were you, I suggest to HR that they

839
00:38:59,680 --> 00:39:02,759
Speaker 1: choose a different provider for the h s A, both

840
00:39:02,920 --> 00:39:06,319
Speaker 1: so that employees can easily invest and also to make

841
00:39:06,360 --> 00:39:09,319
Speaker 1: sure that you know, fees stay low for everyone at

842
00:39:09,320 --> 00:39:11,439
Speaker 1: the company and you can be you know, the money

843
00:39:11,520 --> 00:39:14,040
Speaker 1: nerd who listens to how the money advocating for change

844
00:39:14,160 --> 00:39:15,640
Speaker 1: in your office. It feels like one of those things

845
00:39:15,680 --> 00:39:17,080
Speaker 1: where you're like, I don't know, I should I send

846
00:39:17,080 --> 00:39:19,560
Speaker 1: an email to HR. Yes, you should, because it helps

847
00:39:19,600 --> 00:39:22,520
Speaker 1: not just you, but everyone else who works there. And

848
00:39:22,600 --> 00:39:24,359
Speaker 1: you know your employer they might have a deal worked

849
00:39:24,360 --> 00:39:26,320
Speaker 1: out with this bank. They might just say no, and

850
00:39:26,440 --> 00:39:28,920
Speaker 1: so yeah, then you've got to take matters into your

851
00:39:28,960 --> 00:39:30,719
Speaker 1: own hands. You've got to do what's best for you.

852
00:39:31,239 --> 00:39:33,040
Speaker 1: And there are a couple ways of going about this,

853
00:39:33,440 --> 00:39:35,759
Speaker 1: you know, one of which is what's called an h

854
00:39:35,920 --> 00:39:37,960
Speaker 1: s A rollover, which is something that you can do

855
00:39:38,120 --> 00:39:40,520
Speaker 1: once a year. You can initiate an h s A

856
00:39:40,680 --> 00:39:43,320
Speaker 1: rollover with your new hs A provider. They send you

857
00:39:43,440 --> 00:39:45,920
Speaker 1: a check and then you send that amount to your

858
00:39:46,000 --> 00:39:49,440
Speaker 1: vastly superior old hs A provider fastly superior because you

859
00:39:49,520 --> 00:39:53,839
Speaker 1: can invest exactly Uh, then you can be investing those funds.

860
00:39:53,840 --> 00:39:56,120
Speaker 1: You gotta keep in mind that you have sixty days

861
00:39:56,239 --> 00:39:59,440
Speaker 1: to do that, otherwise you get hit with a penalty.

862
00:39:59,480 --> 00:40:02,640
Speaker 1: So time is of the essence in this case. I

863
00:40:02,680 --> 00:40:05,040
Speaker 1: will say as well, Matt, that it might not make

864
00:40:05,080 --> 00:40:07,480
Speaker 1: the most sense for Jessica to put those hs A

865
00:40:07,560 --> 00:40:10,400
Speaker 1: dollars with her old h s A provider just because

866
00:40:10,440 --> 00:40:13,440
Speaker 1: they allow her the ability to invest, because in so

867
00:40:13,560 --> 00:40:15,719
Speaker 1: many of these h s A accounts, even if you're

868
00:40:15,719 --> 00:40:17,879
Speaker 1: allowed to invest, the fees are just too too much

869
00:40:18,239 --> 00:40:20,279
Speaker 1: and sometimes they can be egregious. Yeah, they're gonna eat

870
00:40:20,320 --> 00:40:23,040
Speaker 1: away at the dollars that should be working for you.

871
00:40:23,239 --> 00:40:25,920
Speaker 1: And so they're really just to hs A providers that

872
00:40:26,040 --> 00:40:28,200
Speaker 1: we think do a great job at least that are

873
00:40:28,239 --> 00:40:31,680
Speaker 1: on our radar. Fidelity and Lively will link to both

874
00:40:31,760 --> 00:40:33,880
Speaker 1: in the show notes. But those are the two companies

875
00:40:33,880 --> 00:40:36,040
Speaker 1: I would trust with my HSA dollars. And so Jessica,

876
00:40:36,080 --> 00:40:38,320
Speaker 1: if you're old hs A provider is not one of

877
00:40:38,360 --> 00:40:40,920
Speaker 1: those two, you might want to, you know, transfer all

878
00:40:40,960 --> 00:40:43,000
Speaker 1: of your HSA dollars to one of those companies. Right,

879
00:40:43,000 --> 00:40:45,680
Speaker 1: we're complicating matters, but you've got your old provider, you've

880
00:40:45,719 --> 00:40:48,080
Speaker 1: got your new provider, third player. Now you're gonna have

881
00:40:48,160 --> 00:40:51,640
Speaker 1: your new new ages A provider, which is hopefully Fidelity

882
00:40:51,880 --> 00:40:54,680
Speaker 1: or Lively. And Joe kind of mentioned the rollover, which

883
00:40:54,760 --> 00:40:56,520
Speaker 1: is that option that you can do once a year,

884
00:40:56,880 --> 00:40:58,719
Speaker 1: and you've got to be careful that you don't get

885
00:40:58,800 --> 00:41:02,640
Speaker 1: hit with an qualified distribution UH from the I R S.

886
00:41:02,680 --> 00:41:04,919
Speaker 1: But a way that you can completely avoid that risk

887
00:41:05,200 --> 00:41:08,640
Speaker 1: is by initiating what's called a trustee to trustee HSA transfer.

888
00:41:09,000 --> 00:41:11,080
Speaker 1: This way, you never touch that money and therefore you

889
00:41:11,160 --> 00:41:13,200
Speaker 1: never run the risk of getting hit with that huge penalty.

890
00:41:13,560 --> 00:41:15,640
Speaker 1: And on top of that, there shouldn't be any limit

891
00:41:15,760 --> 00:41:18,520
Speaker 1: on the number of these HSA transfers. So you can

892
00:41:18,600 --> 00:41:20,879
Speaker 1: just set up a calendar reminder to do this every

893
00:41:20,960 --> 00:41:24,399
Speaker 1: month to immediately get that money invested. Those HSA dollars

894
00:41:24,400 --> 00:41:26,520
Speaker 1: immediately get pulled out of your paycheck, they get sent

895
00:41:26,640 --> 00:41:31,120
Speaker 1: to the administrator that oversees your current workplace hs A account,

896
00:41:31,320 --> 00:41:33,640
Speaker 1: and then maybe say once a month, you initiate that

897
00:41:33,640 --> 00:41:36,560
Speaker 1: trustee to trustee transfer. That way you can get that

898
00:41:36,640 --> 00:41:39,640
Speaker 1: money invested right away. Uh. And yeah, you know theo's

899
00:41:39,719 --> 00:41:41,960
Speaker 1: HSA dollars, they're gonna come in real handy in your

900
00:41:42,000 --> 00:41:45,040
Speaker 1: future at some point. But something that's really important remember

901
00:41:45,200 --> 00:41:48,719
Speaker 1: to document your current medical expenses in a spreadsheet or

902
00:41:48,800 --> 00:41:51,200
Speaker 1: to take pictures of your medical bills, of your receipts,

903
00:41:51,400 --> 00:41:54,360
Speaker 1: so that you can withdraw your funds years down the

904
00:41:54,440 --> 00:41:57,560
Speaker 1: road based on actual medical expenses. You have to align

905
00:41:58,400 --> 00:42:00,880
Speaker 1: the expenses of your past to you pulling out that

906
00:42:00,960 --> 00:42:03,440
Speaker 1: money in the future. But just a great question. We

907
00:42:03,520 --> 00:42:05,719
Speaker 1: really appreciate you sending this one our away and best

908
00:42:05,800 --> 00:42:08,680
Speaker 1: of luck to you as you uh find yet another

909
00:42:08,760 --> 00:42:10,920
Speaker 1: way to invest your money. And again, h s as

910
00:42:10,920 --> 00:42:13,759
Speaker 1: are kind of like the ultimate retirement account because of

911
00:42:13,840 --> 00:42:18,040
Speaker 1: that triple tax advantage. It's tax free on the front end. Uh,

912
00:42:18,120 --> 00:42:20,239
Speaker 1: it's tax free as it grows, and it's tax free

913
00:42:20,280 --> 00:42:22,680
Speaker 1: when you take that money out, assuming that you use

914
00:42:22,719 --> 00:42:25,800
Speaker 1: that money for qualified health expenses, even health expenses that

915
00:42:25,880 --> 00:42:28,400
Speaker 1: occurred in your past. Right. Yeah, it's just a bummer

916
00:42:28,520 --> 00:42:30,719
Speaker 1: that so many people don't know about this account, or

917
00:42:30,760 --> 00:42:33,200
Speaker 1: at least don't know how to fully utilize it in

918
00:42:33,280 --> 00:42:35,520
Speaker 1: a way that's going to provide them the most financial

919
00:42:35,600 --> 00:42:39,480
Speaker 1: advantage over the years, because yeah, there's no other account

920
00:42:39,640 --> 00:42:41,359
Speaker 1: that I know of where you never have to pay

921
00:42:41,440 --> 00:42:44,120
Speaker 1: tax on any of those dollars coming in or out

922
00:42:44,280 --> 00:42:46,520
Speaker 1: of it. And so it is, right, it's pretty spectacular,

923
00:42:46,640 --> 00:42:48,520
Speaker 1: and it's something more people should be taking advantage. It's

924
00:42:48,520 --> 00:42:50,600
Speaker 1: also why we think that they should change you know,

925
00:42:50,880 --> 00:42:53,080
Speaker 1: the Yeah we joke about it. Instead of being called

926
00:42:53,120 --> 00:42:55,359
Speaker 1: a health savings account that we really we should call

927
00:42:55,360 --> 00:42:58,319
Speaker 1: it a health investing account. No wonder people think about it, Ronald,

928
00:42:58,360 --> 00:43:00,919
Speaker 1: because like the name leads you to think about it exactly. Yeah,

929
00:43:01,040 --> 00:43:02,520
Speaker 1: you feel like that money should just be sitting there

930
00:43:02,560 --> 00:43:04,239
Speaker 1: with a bank. And of course the bank wants that

931
00:43:04,280 --> 00:43:05,759
Speaker 1: money to sit there. They don't want to invest in.

932
00:43:05,920 --> 00:43:07,320
Speaker 1: They just want to have that money sitting there in

933
00:43:07,320 --> 00:43:09,480
Speaker 1: their coffers so that they can, you know, make loans

934
00:43:09,760 --> 00:43:12,239
Speaker 1: and do whatever banks do with money. Right, but in

935
00:43:12,360 --> 00:43:14,880
Speaker 1: order to make more money the individual investor or just

936
00:43:15,080 --> 00:43:18,239
Speaker 1: for the individual person, Like, that's by far the worst

937
00:43:18,280 --> 00:43:21,759
Speaker 1: way money. Hey, pitally amounts, you know, with whatever the

938
00:43:21,800 --> 00:43:25,360
Speaker 1: bank is offering. Exactly, start compounding those eight just eight dollars. Alright, now,

939
00:43:25,440 --> 00:43:26,920
Speaker 1: let's get back to the beer that we had on

940
00:43:27,000 --> 00:43:30,160
Speaker 1: this episode. This one is called Sour Bikini and it's

941
00:43:30,200 --> 00:43:32,200
Speaker 1: by Evil Twin Brewing. What were your thoughts on this

942
00:43:32,600 --> 00:43:35,360
Speaker 1: hoppy sour pale ale. Interesting that you call it a

943
00:43:35,440 --> 00:43:37,879
Speaker 1: hoppy sour pale ale because I don't feel like it's

944
00:43:37,960 --> 00:43:40,880
Speaker 1: overly hoppy. It's definitely got something like that. I don't know,

945
00:43:40,960 --> 00:43:43,919
Speaker 1: like maybe like that brightness um, some of that herbal nature,

946
00:43:44,000 --> 00:43:46,439
Speaker 1: some of that greenness that you associate with a hoppy beer.

947
00:43:46,920 --> 00:43:48,800
Speaker 1: But to me, like I feel like I taste mostly

948
00:43:49,239 --> 00:43:52,120
Speaker 1: just the tartness and like the the clean nature of

949
00:43:52,200 --> 00:43:54,520
Speaker 1: a pale really good though, you know, this is a

950
00:43:54,600 --> 00:43:57,359
Speaker 1: great springtime drinking beer. I love how on the label

951
00:43:57,400 --> 00:44:00,960
Speaker 1: it just says ingredients, waters, malt, hops and yeast, so

952
00:44:01,239 --> 00:44:03,600
Speaker 1: obviously it's got hops in it. But you know which

953
00:44:03,680 --> 00:44:06,520
Speaker 1: one might beat the German purity laws for being seriously

954
00:44:07,160 --> 00:44:09,879
Speaker 1: but I'll also mentioned the ABV on this one, which

955
00:44:09,920 --> 00:44:11,680
Speaker 1: is only three percent. I feel like this is the

956
00:44:11,760 --> 00:44:13,400
Speaker 1: kind of beer that you want to be drinking in

957
00:44:13,440 --> 00:44:15,880
Speaker 1: the summer. It's like quite quite yet the summer, but

958
00:44:16,640 --> 00:44:19,840
Speaker 1: ringing with at the beach. Yes, yeah, exactly, It's really fantastic.

959
00:44:20,120 --> 00:44:22,800
Speaker 1: I also think that this is a fantastic introduction to sours.

960
00:44:23,000 --> 00:44:25,560
Speaker 1: If you've not really had sours before, this is a

961
00:44:25,600 --> 00:44:28,160
Speaker 1: great way for you to experience some of that tartness

962
00:44:28,160 --> 00:44:30,400
Speaker 1: without completely getting bowled over by it. And if you

963
00:44:30,480 --> 00:44:31,680
Speaker 1: like I pas and you're like, I don't know, if

964
00:44:31,719 --> 00:44:33,640
Speaker 1: I like ours, maybe this is kind of the perfect

965
00:44:33,680 --> 00:44:35,759
Speaker 1: blend of those. I do think that there aren't enough

966
00:44:36,200 --> 00:44:40,200
Speaker 1: breweries making hoppy beers that have sour elements to them.

967
00:44:40,200 --> 00:44:42,200
Speaker 1: I've always liked the combination of like a pail or

968
00:44:42,239 --> 00:44:44,359
Speaker 1: an I p A and sour flavors, Like I think

969
00:44:44,400 --> 00:44:47,760
Speaker 1: that kind of provides like some really interesting beer. Usually

970
00:44:47,960 --> 00:44:49,800
Speaker 1: I think like New Belgium had one for a minute,

971
00:44:49,880 --> 00:44:52,080
Speaker 1: and there's a brewery out of North Carolina, Bremari, that

972
00:44:52,160 --> 00:44:54,120
Speaker 1: had like a really good sour I PA. But like

973
00:44:54,200 --> 00:44:57,160
Speaker 1: almost nobody makes those kinds of beers, and I think

974
00:44:57,280 --> 00:45:00,279
Speaker 1: they're fun. I think it's like refreshingly tart at the

975
00:45:00,320 --> 00:45:02,800
Speaker 1: same time being flavorful. So I dug it and I

976
00:45:02,880 --> 00:45:04,800
Speaker 1: probably will take this period to the pool in a

977
00:45:04,840 --> 00:45:06,800
Speaker 1: couple of months. That's that's the goal most definitely. In

978
00:45:07,120 --> 00:45:09,080
Speaker 1: Good Job Evil Twins. So this is the first time

979
00:45:09,120 --> 00:45:11,240
Speaker 1: we've ever had I mean, you and I. We've definitely

980
00:45:11,239 --> 00:45:14,040
Speaker 1: had Evil Twin Beers before, not on the show, but

981
00:45:14,120 --> 00:45:15,759
Speaker 1: this is the first time we've had an Evil Twin

982
00:45:15,840 --> 00:45:17,880
Speaker 1: Beer on the show, So be sure to check them

983
00:45:17,920 --> 00:45:20,640
Speaker 1: out if you see their stuff on the shelves, no doubt.

984
00:45:20,640 --> 00:45:22,800
Speaker 1: All right, now, that's gonna do it for this episode.

985
00:45:23,160 --> 00:45:25,719
Speaker 1: For folks who have a listener question they want to

986
00:45:25,760 --> 00:45:27,759
Speaker 1: ask us, they want us to tackle it on an

987
00:45:27,880 --> 00:45:30,640
Speaker 1: upcoming ask htm episode, just go to how to Money

988
00:45:30,719 --> 00:45:33,600
Speaker 1: dot com slash ask. There are simple instructions there for

989
00:45:33,680 --> 00:45:35,759
Speaker 1: you to submit your question to us, and we'd love

990
00:45:35,840 --> 00:45:38,200
Speaker 1: to take it on a future episode. That's right. And

991
00:45:38,320 --> 00:45:39,799
Speaker 1: if you've been listening to the show for a while

992
00:45:39,840 --> 00:45:41,920
Speaker 1: and you haven't left us a review, it's not something

993
00:45:41,960 --> 00:45:43,560
Speaker 1: we've asked here in a minute, but head over to

994
00:45:43,840 --> 00:45:46,040
Speaker 1: Apple Podcast, head over to wherever it is that you

995
00:45:46,160 --> 00:45:48,719
Speaker 1: listen and see if you can rate or review us

996
00:45:48,760 --> 00:45:51,200
Speaker 1: over there. That is always a helpful way for us

997
00:45:51,200 --> 00:45:53,480
Speaker 1: to get the word outs for folks to see what

998
00:45:53,680 --> 00:45:56,319
Speaker 1: they can expect from How to Money, So a big

999
00:45:56,520 --> 00:45:59,080
Speaker 1: thank you in advance for that, Joel. That's gonna be

1000
00:45:59,120 --> 00:46:01,560
Speaker 1: it for this episode, But until next time, Best Friends Out,

1001
00:46:01,800 --> 00:46:02,879
Speaker 1: Best Friends Out,