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

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Speaker 1: and today we're answering your listener questions.

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Speaker 2: Yeah, man, as we are known to do, we've got

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Speaker 2: a listener questions episode lined up for folks. This isn't

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Speaker 2: ask how to Money episode. We've got five great ones,

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Speaker 2: including a listener who's wanting to know if he should

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Speaker 2: deploy the strategy that he's come up with in order

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Speaker 2: to maximize the benefits that he's getting out of his

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Speaker 2: credit cards. Another listener is wondering if she should ditch

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Speaker 2: this second car that she's got, a beloved second car.

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Speaker 2: By the way, this isn't necessarily a car that she's

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Speaker 2: wanting to get rid of, but we'll give our thoughts

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Speaker 2: on that one. And then another listener is wondering how

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Speaker 2: she should respond to some of those different folks who

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Speaker 2: were out and they're like, hey, i'll buy your home.

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Speaker 2: I've got an all cash offer. It'll happen fast. What

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Speaker 2: do you do about that?

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Speaker 1: Yeah? We my ugly houses, those guys, you know, and

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Speaker 1: there's like their ilk has grown.

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Speaker 2: Don't be offended. Not just ugly houses.

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Speaker 1: Yeah, even your sent my beautiful house. Yeah, there's a

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Speaker 1: lot of people are getting postcards, getting calls, getting texts.

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Speaker 1: We'll talk about that too real quick, Matt, you please

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Speaker 1: a couple other questions you mentioned credit cards and a question.

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Speaker 1: We're going to take on that in just a second.

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Speaker 1: But a listener, Ryan, he reached out and he had

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Speaker 1: something helpful that we haven't really talked about on the

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Speaker 1: show that he mentioned to us, and we felt like

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Speaker 1: we should relay his finding. Well one, he said that

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Speaker 1: in the Pacific Northwest where he lives, Winco is like

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Speaker 1: the Aldi or legal equivalent. Yeah, Windco. He's like, I

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Speaker 1: don't have legal or Aldy where I live, and so

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Speaker 1: that's where I go to save money at the grocery store.

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Speaker 1: I've never been to a Winco. I can't vouch for it.

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Speaker 1: Ryan says it's good. I'm gonna trust him. I feel

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Speaker 1: like we should, Yeah, let people know in the great

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Speaker 1: PMW Ryan reach out to you personally. I don't think

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Speaker 1: no us em Yeah, well, sometimes they fall through the cracks.

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Speaker 1: I know that happens. Sam, Well, that is true. Yeah,

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Speaker 1: I feel like.

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Speaker 2: They fall through your cracks more than they do much.

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Speaker 2: Because all are responding, You're like, what the heck, how

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Speaker 2: do you use you.

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Speaker 1: That yeah, well so big. Yeah. Again, I'm not sure,

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Speaker 1: haven't been to wind Cod, but it's it sounds like

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Speaker 1: it's going to be a money saving and so like

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Speaker 1: a winter another thing Ryan metch winning company, and this

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Speaker 1: definitely bears repeating. I don't know if we've talked about

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Speaker 1: it before, but the way credit cards code different purchases,

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Speaker 1: the way Amex or Visa will code something that directly

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Speaker 1: impacts the kind of rewards that you're going to get

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Speaker 1: based on that purchase, and so the way they code

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Speaker 1: specific retailers or companies. Right, So when you shop at Walmart,

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Speaker 1: even if you're buying only groceries, it doesn't matter if

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Speaker 1: you use your AMEX Blue Cash Preferred trying to snag

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Speaker 1: that six percent because hey, I'm buying groceries. No, no, no, no,

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Speaker 1: it has to be at a grocery store as approved

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Speaker 1: or as coded by AMEX, right, And so Walmart doesn't

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Speaker 1: qualify as.

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Speaker 2: It well, it is considered a it's considered to be

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Speaker 2: a super store like the big Walmarts or the big targets.

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Speaker 2: They don't qualify you don't. You're not going to get

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Speaker 2: that six percent on the Blue Cash Preferred or is

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Speaker 2: it three percent on the blue on the blue cash

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Speaker 2: every day. Yes, so yeah, you can so the different

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Speaker 2: I know, the different credit card companies. If you go

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Speaker 2: digging for it, you can find some of the different

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Speaker 2: retailers that they've highlighted, or specifically, in this case, grocery stores.

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Speaker 2: But otherwise a lot of it's trial and error. Yeah, yeah,

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Speaker 2: look and see you just literally look back at your

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Speaker 2: statement and see whether or not you got that six

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Speaker 2: percent at Winco or whatever regional discount grocery store that

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Speaker 2: you might prefer.

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Speaker 1: You know, one other thing worth mentioning, like when you're

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Speaker 1: filling up gas at a grocery store exactly. That's another

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Speaker 1: time when you are unlikely to get the higher rate

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Speaker 1: at a gas station that you normally get with one

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Speaker 1: of those gas station cards like what costcos is four

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Speaker 1: percent I think on gas and Sam's Clubs gas. So

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Speaker 1: if you're using one of those, but you're filling up

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Speaker 1: at Kroger, you're not going to get that extra bonus

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Speaker 1: cash back, and so.

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Speaker 2: You've got to fill up at a Chevron or that's

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Speaker 2: another part at the Osco says Track, Yeah, yeah, exactly.

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Speaker 1: But if you're so that that's just interesting word to

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Speaker 1: the wise, just because you're getting gas doesn't mean you're

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Speaker 1: getting the gas cash back that you're hoping you get.

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Speaker 1: So that's a great tip. Yeah.

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Speaker 2: And by the way, so you mentioned Aldi. I saw

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Speaker 2: so our local news email blast that goes out every day.

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Speaker 2: They had like some sort of poll in there about

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Speaker 2: Atlanta's favorite grocery stores. And guess who wasn't at all

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Speaker 2: like even in the top ten anywhere.

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Speaker 1: I Like.

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Speaker 2: I looked over it multiple times, thinking, surely I'm overlooking

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Speaker 2: my beloved Aldi, and it wasn't in there.

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Speaker 1: There's no way, because they put Leedle on there. They

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Speaker 1: always the Leedle was at the very bottom.

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Speaker 2: I think it literally came in like eighth or ninth place,

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Speaker 2: and then well they had an other, and the other

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Speaker 2: was substantially.

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Speaker 1: More than Leadle. So maybe maybe that's what I don't know.

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Speaker 1: I felt a little. I felt like I was ready

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Speaker 1: to fight to get slighted. Folks need to check out Aldie.

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Speaker 2: It's such an affordable place. You have fewer options, so

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Speaker 2: there's less decision fatigue. And I guarantee that you're gonna

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Speaker 2: I mean, you will spend thirty percent less by going

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Speaker 2: to an audio versus something like a Kroger or wind Dicks.

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Speaker 1: And I guarantees it. I guarantee yeah, And if you don't,

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Speaker 1: you can get a refund from him by emailing them directly.

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Speaker 2: It's not twice as nice, it's thrice as nice. Joel

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Speaker 2: will spot the difference.

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Speaker 1: That's right, we got you back, all right, Matt. Let's

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Speaker 1: move on. Let's get to our listener questions. But first

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

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Speaker 1: one is called Spring Thrills. It's an ipa by Petez

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Speaker 1: to Port Brewing and support Carlsbad, California. This one comes

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Speaker 1: to us again from our good friend Joel. Thank you

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Speaker 1: Joel for donating this one.

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Speaker 2: And I'm sure he picked this one because the label

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Speaker 2: it's surfing. It's so yeah, it's it's Spring Thrills. But

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Speaker 2: the picture is just a guy surfing. And Joel, he's

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Speaker 2: a surfer.

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Speaker 1: He loves to surf. Yep, it's just one of his

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Speaker 1: favorite things to do. Kok slams.

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Speaker 2: That's one of the things someone that I both share

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Speaker 2: watching folks at slamm by the waves. It's one of

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Speaker 2: our past times.

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Speaker 1: Yeah. For folks who have a money question and they

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Speaker 1: want us to take it on a future ask htm episode.

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Speaker 1: We'd love to hear it. Just go to how Tomoney

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Speaker 1: dot com slash ask Simple instructions there so you can

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Speaker 1: cord your voice memo get it our way so we

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Speaker 1: can take it hopefully next to in the next couple

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Speaker 1: of weeks. But all right, let's get to our first

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Speaker 1: question of this episode, Matt. This one is about rental,

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Speaker 1: real estate and hiring someone to help you out.

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Speaker 3: Hi Drolin, Matt, this is Malia from Western Washington. I

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Speaker 3: just listened to your episode number six forty seven about

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Speaker 3: real estate investing, and I have a question that you

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Speaker 3: got very close to answering, but not quite. We're planning

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Speaker 3: to rent our home. It's our first house because we're

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Speaker 3: moving out of state, but we hope to come back someday. Additionally,

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Speaker 3: we bought our home for about half of what it's

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Speaker 3: now valued at. We literally could not buy it today.

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Speaker 3: It was certainly a fixer upper when we purchased it,

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Speaker 3: and we've made many improvements, but I suspect some fixing

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Speaker 3: is still coming down the pipeline in our case where

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Speaker 3: we will be about eight hundred miles away. Would you

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Speaker 3: suggest having a company manage it for us?

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Speaker 4: Despite the cost.

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Speaker 3: I'd love to hear your thoughts.

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Speaker 4: Thanks.

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Speaker 2: Yeah, yeah, we almost answered your question, but we'd like

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Speaker 2: to leave people hanging just a little bit.

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Speaker 1: You can't give them everything all away. Yeah yeah.

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Speaker 2: It incentivizes additional great question submissions like this. And by

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Speaker 2: the way, Melia is in Washington, so Milliam, make sure

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Speaker 2: you're checking out what was it Winco. If you haven't

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Speaker 2: been to a wind go I'm sure. I mean, come on,

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Speaker 2: I'm sure Malia's crushing it.

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Speaker 1: You've been there.

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Speaker 2: But you are not alone in not being able to

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Speaker 2: afford the home that you currently own if you were

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Speaker 2: to put it on the market today. I feel like

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Speaker 2: a lot of folks are experiencing that because home price

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Speaker 2: appreciation has been insane, especially over the past several years.

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Speaker 2: The average homeowner has gained around one hundred thousand dollars

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Speaker 2: in home equity just since the beginning of the pandemic.

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Speaker 2: So imagine a generous benefactor taking about thirty three thousand

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Speaker 2: dollars hiding it away in your attic for the past

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Speaker 2: three years. That's essentially what the market has done for

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Speaker 2: the average home owner. But at the same time, you know,

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Speaker 2: this does make it really tough out there for all

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Speaker 2: the folks who want to be homeowners who are looking

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Speaker 2: for that first property, many of whom who they've either

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Speaker 2: gotten priced out of the market or they're having to

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Speaker 2: change some of the parameters. They're having to maybe to

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Speaker 2: look a little bit further out of town in order

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Speaker 2: to be able to afford that. We're certainly bummed to

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Speaker 2: see that. But our question today specifically has to do

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Speaker 2: with turning that primary residence into a rental and how

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Speaker 2: to go about that.

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Speaker 1: Which you and I we have always said for a

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Speaker 1: long time that that is one of the easiest ways

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Speaker 1: for a lot of people to get into the rental

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Speaker 1: property game, because it means typically when you buy a

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Speaker 1: rental property, you save up twenty five percent to put down.

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Speaker 1: But if you're buying another primary residence and renting out

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Speaker 1: the place that you've been living in right for the

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Speaker 1: past couple of years or something like that, you only

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Speaker 1: have to save up twenty percent. You get better terms

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Speaker 1: on that next primary purchase. It just depends on like, well,

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Speaker 1: does this property make sense as a rental property or not.

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Speaker 1: But that's how I got into it, Matt. That's it

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Speaker 1: was renting out my first house, moving into another one

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Speaker 1: then two years later. I know, renting out that house

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Speaker 1: and then moving into another one helps you move. Yeah,

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Speaker 1: but then it's just such a clutchway for a lot

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Speaker 1: of people to get into it. If you're like, I'm overwhelmed,

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Speaker 1: how do I do it? That's a really saving up

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Speaker 1: for that next down payment while you're living in that house.

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Speaker 1: But let's talk about property managers. Should you try to

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Speaker 1: manage this property long distance? I would say this if

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Speaker 1: you owned a few different rental properties and you've been

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Speaker 1: doing it for years, maybe we would have given you

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Speaker 1: the green light to try it and see how it goes.

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Speaker 1: But we really believe that self managing is a great

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Speaker 1: way to start, and once you have systems in place,

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Speaker 1: proximity to the property becomes less important. I've had to

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Speaker 1: deal with property issues when I've been out of town,

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Speaker 1: and it used to be a pain in the butt.

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Speaker 1: I used to feel like I had to be at

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Speaker 1: the property every time to meet a contractor or even

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Speaker 1: for minor fixes. But now I know who to call,

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Speaker 1: and I have my tenants let those people in, and

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Speaker 1: I can get stuff taking care of without being on site.

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Speaker 1: So it's possible to manage a property without being in

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Speaker 1: close proximity, but it might not be ideal given that

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Speaker 1: this is your first rodeo.

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Speaker 2: Yeah, and with Malia specifically, I mean, it sounds like

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Speaker 2: she's had a good amount of experience dealing with some

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Speaker 2: home repairs, maybe some renovations, so she might actually have

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Speaker 2: a good number of folks that she can count on

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Speaker 2: to handle any work at the house. But the fact

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Speaker 2: is that, I mean, Maalie, you're gonna be on the

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Speaker 2: other side of the country, so it's a different calculation.

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Speaker 2: I think most issues like repairs and scheduling work, you

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Speaker 2: can do that from afar. But what if your tenants

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Speaker 2: break their least and you've got an unscheduled vacancy that's

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Speaker 2: costing you money every single week, every single day that

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Speaker 2: you don't have someone in there. And the fact is,

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Speaker 2: even if you have tenants who are there for an

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Speaker 2: entire year, if you're managing it yourself, like you're still

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Speaker 2: looking at having to pay for a plane ticket, rent

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Speaker 2: a car, then pay for lodging just to show it

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Speaker 2: for a couple of days, you know, while your fingers

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Speaker 2: are crossed hoping that you're going to actually find somebody.

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Speaker 2: So this is why it probably makes sense to hire

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Speaker 2: a manager in your specific case.

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Speaker 1: Not only does that sound costly, it sounds stressful. So exactly,

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Speaker 1: if you're planning on visiting every once in a while anyway,

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Speaker 1: you stay with a friend, you come into town every

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Speaker 1: three three to six months, then maybe you can kind

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Speaker 1: of do it and see how it goes. But even still,

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Speaker 1: I think it makes sense in all likelihood to hire

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Speaker 1: a profitional property manager who knows what he or she

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Speaker 1: is doing and have that person kind of be in

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Speaker 1: charge of that unit for you.

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Speaker 2: Yeah, this makes me think of the previous home that

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Speaker 2: we that was our primary residence. We actually purchased it

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Speaker 2: as it was a rental, and so the couple who

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Speaker 2: owned the house, they actually were living in France, and

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Speaker 2: that's exactly what they did. They didn't have friends kind

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Speaker 2: of looking after the property but her dad, So they

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Speaker 2: used to be local and her dad was still local

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Speaker 2: and they managed the property. And so obviously that would

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Speaker 2: be something you would want to make sure that you

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Speaker 2: arrange ahead of time. It needs to be a very

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Speaker 2: clear conversation, but I feel like that could be.

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Speaker 1: I got to talk about whether you pay them or

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Speaker 1: not to because they might not want to go it

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Speaker 1: for free exactly.

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Speaker 2: But you know, again, if you're going to be visiting

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Speaker 2: your parents, in that case, it could possibly make sense.

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Speaker 2: It could be a way for you to maybe test

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Speaker 2: the waters before going through the steps of actually finding

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Speaker 2: a property manager.

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Speaker 1: Okay, so let's say it is time though to find

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Speaker 1: a property manager, which I think in all likelihood it is.

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Speaker 1: If you know other real estate investors in the area,

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Speaker 1: you can ask for referrals, so you can bet a few,

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Speaker 1: and I think you want to interview at least two,

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Speaker 1: probably three or four people before you kind of decide

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Speaker 1: who you want to be managing your property. This is

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Speaker 1: a big deal, right, and you want to make sure

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Speaker 1: they're going to treat it in a similar way that

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Speaker 1: you treat your property and that you would treat your tenants.

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Speaker 1: And so yeah, real estate agents are a place to turn.

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Speaker 1: That typical rate, by the way, for a property manager

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Speaker 1: is half a first month's rent when they find a

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Speaker 1: new tenant for you, and ten percent of the monthly

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Speaker 1: rent amount after that. But don't just compare the fees, right,

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Speaker 1: I'd ask to speak to a couple of folks who

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Speaker 1: have used that property manager for at least two years, right,

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Speaker 1: ask them, have they been happy with the service. And

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Speaker 1: remember you're interviewing this person kind of like to work

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Speaker 1: for you, so be nice. But treat those those combos

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Speaker 1: kind of like a fact finding mission to see how

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Speaker 1: they would treat your rental and how on the ball

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Speaker 1: they're going to be when it comes to finding great

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Speaker 1: tenants and collecting rents and managing vacancy to keep it

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Speaker 1: to a minimum, and keeping your home in good shape

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Speaker 1: overall too. So I think hiring a property manager could

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Speaker 1: be the best thing that ever happened to you in

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Speaker 1: a lot of ways, taking a whole lot of stress

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Speaker 1: off your plate. Or you might find that it's not

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Speaker 1: worth the money at all because they don't take care

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Speaker 1: of it nearly as well as you would. That's right.

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Speaker 2: And by the way, the fact that you are planning

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Speaker 2: to come back to the home, Malia, it means it's

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Speaker 2: definitely worth holding onto because you know, based on the

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Speaker 2: fact that you've seen massive appreciation, that probably means that

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Speaker 2: this is an up and coming part of town that

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Speaker 2: you're probably really excited about and worry to move back.

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Speaker 2: There is a good chance that you that you're gonna

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Speaker 2: have the same values right like you're going to still

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Speaker 2: be drawn to the same things that drew you to

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Speaker 2: buy that home in the first place. But honestly, even

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Speaker 2: if you change your mind and you decide that landlording

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Speaker 2: isn't for you, like, it still makes sense to hang

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Speaker 2: onto that property for three years and hopefully continue to

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Speaker 2: see appreciation during the interim. And I say three years

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Speaker 2: because you have to have occupied a house for two

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Speaker 2: out of the past five years in order to not

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Speaker 2: have to pay capital gains when the time comes to

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Speaker 2: sell that house, and so hanging on to it it

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Speaker 2: makes sense because it just gives you some more time.

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Speaker 2: It buys you some time. It allows you to see

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Speaker 2: what your options are. Maybe mortgage rates will continue to

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Speaker 2: drop and maybe the market is going to really heap

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Speaker 2: back up in the next year or two. Who knows, right,

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Speaker 2: But it's always just nice to have additional options. But again,

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Speaker 2: since you're gonna want to live in it again someday

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Speaker 2: and there's a likely chance that you'll be coming back,

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Speaker 2: renting it out for the time being is a really

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Speaker 2: smart move.

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Speaker 1: It makes me think of my friend John Adams, not

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Speaker 1: the former president of the United States, but just second President.

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Speaker 1: An awesome dude, who's the second second Yeah, yeah, but

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Speaker 1: just an awesome dude who lives here in Atlanta, and

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Speaker 1: he's given me lots of great advice over the years

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Speaker 1: about investing in real estate. And he emailed me the

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Speaker 1: other day and he told me, Hey, I'm selling my

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Speaker 1: super swanky house that I've been living in for the

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Speaker 1: last two years. I'm moving back into a rental property.

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Speaker 1: Why am I doing this to avoid capital gains tax?

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Speaker 1: And these are the kind of things like this is

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Speaker 1: what's cool about real estate is he can you can

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Speaker 1: move back into a house even if let's say Malia

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Speaker 1: rens it out for four years, moves back into it,

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Speaker 1: then for two years, boom, then you can sell it

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Speaker 1: and avoid capital gains. So real estate is just so

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Speaker 1: flexible in so many ways, and I love it's flexible

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Speaker 1: if you're flexible, if you're flexible exactly exactly, and that's

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Speaker 1: why people do live in flips. But when we talked

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Speaker 1: far Al about that on the show, that seems like

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Speaker 1: an empty nester kind of move. I know, if I

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Speaker 1: told Kate we were moving back into one of our

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Speaker 1: houses that we moved from with four kids, I don't

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Speaker 1: think she gonna be dolling. But maybe when you're an

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Speaker 1: empty nester, and that's the thing, Like, Yeah, I love

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Speaker 1: that idea. John is retired, like he's in his seventies,

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Speaker 1: and this is something that he's doing because he's just

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Speaker 1: that savvy when it comes to real estate, and he's

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Speaker 1: like willing to put himself through a little bit of

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Speaker 1: pain to do the right thing to avoid those taxes. So,

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Speaker 1: all right, We've got more questions to get to on

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Speaker 1: this episode, of course, including one about when do you

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Speaker 1: start spending in retirement? How do you kind of make

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Speaker 1: the change from savor to spender. We'll talk about that

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

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Speaker 2: We'll get to that question about flipping the switch going

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Speaker 2: from saving to spending your nest egg. But before we

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Speaker 2: get to that one, let's hear from a listener who

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Speaker 2: is thinking about implementing a potentially risky credit card strategy.

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Speaker 5: Hi, Matt and Joel. It's Peter from Boston. I would

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Speaker 5: like your guys opinion on a new credit card strategy.

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Speaker 5: I'm considering. My wife and I both have excellent credit

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Speaker 5: and we pay our credit cards off in full and

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Speaker 5: on time every month. I just got a new credit

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Speaker 5: card from Wells Fargo that has two percent cash back

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Speaker 5: a bonus for a certain amount of spending, and also

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Speaker 5: zero percent APR for fifteen months. What I'm thinking of

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Speaker 5: doing is taking all or most of our expenses and

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Speaker 5: charging them on that card, waiting the full fifteen months

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Speaker 5: to pay it off, and then taking the money that

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Speaker 5: I would have been paying towards it every month to

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Speaker 5: pay it off, and putting that in a high yield

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Speaker 5: savings account or maybe even some short term CDs or

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Speaker 5: treasury bills that would mature before the payment date on

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Speaker 5: the card, and then pay it in full after the

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Speaker 5: fifteen months is up, so I don't accumulate any interest,

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Speaker 5: and then over the fifteen months, from my rough calculations,

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Speaker 5: we would have earned you know, hundreds or even a

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Speaker 5: thousand or more in interest from having that money invested

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Speaker 5: instead of going to pay off the card. So please

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Speaker 5: let me know what you think of that strategy, if

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Speaker 5: there's any thing to look out for. Obviously, we would

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Speaker 5: not touch the money, just have it in the account

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Speaker 5: earning interest over that whole time frame. I love your

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Speaker 5: guys show. I love all the advice that you've given

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Speaker 5: me and helped me with over the years. Thank you

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Speaker 5: so much for all you do and cheers.

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Speaker 1: Matt Peter sounds like a hyper optimizer. He does, by

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Speaker 1: the way.

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Speaker 2: He said cheers and he's from did he say he's

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Speaker 2: from Boston?

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Speaker 1: Oh? Do you think he uh, maybe he's a fan.

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Speaker 1: I mean, who doesn't love that I have.

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Speaker 2: I have fond memories of sitting as a little kid.

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Speaker 2: My dad was really into Cheers as like literally back

403
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Speaker 2: when it.

404
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Speaker 1: Was all on TV.

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Speaker 2: Yeah, and I remember Sam alone, like the crew, I

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Speaker 2: remember being dance.

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Speaker 1: That was a good cast. This solid, it was a

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Speaker 1: good job. But like, I mean, that's in your vein too.

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Speaker 1: You're you're like you like to optimize things to the

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Speaker 1: in degree. Oh I thought you mean Cheers is oh too? Yes,

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Speaker 1: I am an optimizer. And when I yeah, when when

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Speaker 1: Peter's question came in, I was like, yeah, man, after

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Speaker 1: my own heart, I thrick on stuff like this. Well,

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Speaker 1: and we, of course we love the idea of opening

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Speaker 1: up a new credit card in order to score a

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Speaker 1: bonus and better rewards. Like we're we're all in on that, right.

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Speaker 1: We talk about all the time using credit cards. Well,

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Speaker 1: and that is one of the things you can do

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Speaker 1: to kind of as long as you use credit cards

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Speaker 1: properly and you pay your balance off on time and

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Speaker 1: in full. That can actually help you in your in

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Speaker 1: your pursuit of financial independence. Most people are going to

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Speaker 1: benefit significantly from having three ish cards. And I say

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Speaker 1: three ish because three is a good number. Four might

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Speaker 1: be better for some, but like you know, it's easy

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Speaker 1: enough to remember when to use which card without things

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Speaker 1: getting out of hand if you have three or four

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Speaker 1: some of these. If you go overboard, you might have ten, eleven, twelve.

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Speaker 1: You might even have to be organized at the same

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Speaker 1: time if you're going to go in that direction, right,

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Speaker 1: But you've got to pay attention to make sure you're

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Speaker 1: getting enough value out of each card and that you're

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Speaker 1: spending isn't getting out of hand because of a proliferation

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Speaker 1: of credit cards too.

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Speaker 2: Sure, but with Peter's attention to detail, I feel like

436
00:19:05,359 --> 00:19:07,399
Speaker 2: he could be the kind of guy who has a

437
00:19:07,440 --> 00:19:10,399
Speaker 2: dozen credit cards. Yeah, but he's trying to take things

438
00:19:10,440 --> 00:19:12,840
Speaker 2: one step further, right, Like he wants to take advantage

439
00:19:12,880 --> 00:19:16,160
Speaker 2: of the zero percent intro rates that this new card

440
00:19:16,280 --> 00:19:19,320
Speaker 2: is offering. And so is that smart? I mean, I

441
00:19:19,320 --> 00:19:21,800
Speaker 2: don't think it's dumb necessarily, but it is possible that

442
00:19:21,840 --> 00:19:25,399
Speaker 2: it might not be worth the additional hassle this question.

443
00:19:25,640 --> 00:19:27,640
Speaker 2: It does make a bit more sense in an era

444
00:19:27,760 --> 00:19:30,399
Speaker 2: of solid savings rates, because a few years ago it

445
00:19:30,400 --> 00:19:33,359
Speaker 2: would have been completely silly, right, But now, I mean.

446
00:19:33,400 --> 00:19:37,440
Speaker 1: You sneak out half a percent. You know, there's a legit.

447
00:19:37,240 --> 00:19:40,359
Speaker 2: Decent rate, and when you have that on thousands of

448
00:19:40,359 --> 00:19:43,960
Speaker 2: dollars within a completely safe and liquid accounts that's in

449
00:19:44,000 --> 00:19:46,280
Speaker 2: the five percent range, you're going to earn a decent

450
00:19:46,320 --> 00:19:49,240
Speaker 2: amount in interest. And so Peter, you're right saving those

451
00:19:49,240 --> 00:19:51,560
Speaker 2: dollars instead of forking them over to the credit card

452
00:19:51,640 --> 00:19:55,000
Speaker 2: company over these fifteen months while you're not paying off

453
00:19:55,000 --> 00:19:57,000
Speaker 2: that balance. It gives you an arbitrage play of you know,

454
00:19:57,040 --> 00:19:59,560
Speaker 2: basically maybe seven eight hundred bucks in your favor, that's

455
00:19:59,600 --> 00:20:02,320
Speaker 2: a decent in return, but it kind of comes down

456
00:20:02,359 --> 00:20:04,320
Speaker 2: to a number of factors. You need to make sure

457
00:20:04,359 --> 00:20:05,960
Speaker 2: that you are approaching it correctly.

458
00:20:06,040 --> 00:20:07,879
Speaker 1: Yeah, So it kind of makes me think of buy now,

459
00:20:07,880 --> 00:20:09,720
Speaker 1: pay later, Matt, which is something we advise against. And

460
00:20:09,720 --> 00:20:11,240
Speaker 1: a lot of people say, why do you advise against

461
00:20:11,280 --> 00:20:13,800
Speaker 1: that because you're just splitting things up into installments and

462
00:20:13,800 --> 00:20:15,680
Speaker 1: you're not paying interest on it. It's because of the

463
00:20:15,680 --> 00:20:18,359
Speaker 1: behavioral side of things, and it causes people to spend

464
00:20:18,359 --> 00:20:20,760
Speaker 1: in ways that they otherwise wouldn't. And so that's something

465
00:20:21,080 --> 00:20:22,840
Speaker 1: that Peter's going to have to be conscious of too,

466
00:20:22,840 --> 00:20:24,920
Speaker 1: because if he has a history of overspending, of racking

467
00:20:25,000 --> 00:20:27,040
Speaker 1: up credit card debt that he couldn't pay off, we'd

468
00:20:27,040 --> 00:20:29,119
Speaker 1: say this strategy is just too risky. It's not worth

469
00:20:29,480 --> 00:20:33,960
Speaker 1: chancing it right for this slightly arbitrage return over the

470
00:20:33,960 --> 00:20:35,800
Speaker 1: course of a year plus. And so yeah, if this

471
00:20:35,840 --> 00:20:38,480
Speaker 1: is a balance transwer, if you're shuffling around debt that

472
00:20:38,520 --> 00:20:40,640
Speaker 1: you'd accumulate it but you couldn't pay off, I would

473
00:20:40,640 --> 00:20:43,639
Speaker 1: have a totally different reaction to this. But if you're

474
00:20:43,680 --> 00:20:45,919
Speaker 1: the kind of person who's never carried a balance and

475
00:20:45,960 --> 00:20:50,159
Speaker 1: you're just incredibly astute in your attention to detail, and

476
00:20:50,200 --> 00:20:53,359
Speaker 1: this is just purely an optimization strategy, and you're gonna

477
00:20:53,400 --> 00:20:55,800
Speaker 1: set Google calendar reminders and all that kind of stuff

478
00:20:55,800 --> 00:20:58,280
Speaker 1: to make sure you do everything on time, and it

479
00:20:58,280 --> 00:21:00,320
Speaker 1: sounds like fun to you, then I feel we can

480
00:21:00,320 --> 00:21:02,000
Speaker 1: give the green line on this. I feel like this

481
00:21:02,040 --> 00:21:04,600
Speaker 1: is something that Peter can handle if he so choosers.

482
00:21:04,800 --> 00:21:06,520
Speaker 2: It's sort of like it makes me think of if

483
00:21:06,560 --> 00:21:09,080
Speaker 2: you've got a friend who maybe they used to be

484
00:21:09,119 --> 00:21:11,159
Speaker 2: an alcoholic, maybe they used to drink a little bit

485
00:21:11,160 --> 00:21:14,040
Speaker 2: too much, and you know that there's a sweet beer

486
00:21:14,040 --> 00:21:15,760
Speaker 2: fest coming up, right, Like, this is a beer fest

487
00:21:15,760 --> 00:21:18,119
Speaker 2: where they're going to have some of the choicest beers

488
00:21:18,119 --> 00:21:19,879
Speaker 2: from all around the world, and you want to go

489
00:21:19,920 --> 00:21:21,640
Speaker 2: with a friend, Well, I'm probably not going to invite

490
00:21:21,680 --> 00:21:24,520
Speaker 2: that friend because it might be playing with fire for him, right,

491
00:21:24,560 --> 00:21:27,880
Speaker 2: Like it might challenge their sobriety exactly, it's too slippery

492
00:21:27,920 --> 00:21:30,240
Speaker 2: of a slope. And that's how we kind of view

493
00:21:30,840 --> 00:21:34,160
Speaker 2: using credit cards in a more optimal way with someone

494
00:21:34,200 --> 00:21:36,400
Speaker 2: who has had a history of overspending.

495
00:21:36,520 --> 00:21:39,000
Speaker 1: Yeah, and it's different to say, hey, okay, I'm going

496
00:21:39,040 --> 00:21:41,560
Speaker 1: to start using and spending in order to generate better

497
00:21:41,600 --> 00:21:43,560
Speaker 1: cash back and stuff like that. But when you're playing

498
00:21:43,600 --> 00:21:45,800
Speaker 1: with the zero percent interest rate game to try to

499
00:21:46,320 --> 00:21:49,680
Speaker 1: arbitrage it, that's like a level deeper and the potential

500
00:21:49,720 --> 00:21:51,960
Speaker 1: for air can be even more cash It's.

501
00:21:51,880 --> 00:21:54,080
Speaker 2: Kind of like, yeah, it's graduating up in levels of

502
00:21:54,200 --> 00:21:57,399
Speaker 2: complexity because you've got essentially, i mean, we're talking about

503
00:21:57,400 --> 00:21:59,920
Speaker 2: not just one statement's worth of spending, We're talking about

504
00:22:00,080 --> 00:22:03,200
Speaker 2: fifteen statements worth of spending. Yeah, it could really add up.

505
00:22:03,359 --> 00:22:05,800
Speaker 2: And we should also mention that it wouldn't be smart

506
00:22:05,800 --> 00:22:08,160
Speaker 2: to do this if you don't have a robust emergency fund,

507
00:22:08,480 --> 00:22:10,280
Speaker 2: if you don't have much cash in the bank. This

508
00:22:10,400 --> 00:22:14,840
Speaker 2: is certainly too risky of an endeavor. You know, you

509
00:22:14,840 --> 00:22:17,440
Speaker 2: you build up the amount of money that you would

510
00:22:17,440 --> 00:22:19,960
Speaker 2: have put towards those purchases, and instead you're saving that up.

511
00:22:20,160 --> 00:22:22,000
Speaker 2: But if that's the only cash you have and you

512
00:22:22,000 --> 00:22:24,520
Speaker 2: actually do have an emergency come along, you're you're gonna

513
00:22:24,520 --> 00:22:26,800
Speaker 2: be tempted to tap that money to tap his funds,

514
00:22:27,119 --> 00:22:29,840
Speaker 2: and then you're stuck with a bill potentially that you

515
00:22:29,840 --> 00:22:32,200
Speaker 2: you don't have a way of actually paying down at

516
00:22:32,200 --> 00:22:34,920
Speaker 2: the end of those fifteen months. But yeah, I agree,

517
00:22:35,080 --> 00:22:37,040
Speaker 2: like he's got to be really buttoned up in order

518
00:22:37,080 --> 00:22:40,040
Speaker 2: to avoid financial troubles here that could come along if

519
00:22:40,040 --> 00:22:41,720
Speaker 2: he didn't dot all of his eyes, if he didn't

520
00:22:41,720 --> 00:22:43,840
Speaker 2: cross all of his teas. Because truly, if you forget

521
00:22:43,880 --> 00:22:46,600
Speaker 2: to pay off that balance by the time this promotional

522
00:22:46,640 --> 00:22:49,440
Speaker 2: period is over, you're gonna start accruing interest on any

523
00:22:49,560 --> 00:22:52,840
Speaker 2: unpaid balance, not just on any new purchases. So again,

524
00:22:53,280 --> 00:22:56,280
Speaker 2: it's definitely possible, and from a principal standpoint. I want

525
00:22:56,320 --> 00:22:59,480
Speaker 2: to say one percent, yes, but you just got to

526
00:22:59,480 --> 00:23:01,480
Speaker 2: make sure that you going about things the right way.

527
00:23:01,520 --> 00:23:04,480
Speaker 2: And certainly, if you do choose to go this path, Peter,

528
00:23:05,200 --> 00:23:07,639
Speaker 2: I would probably pay the balance off even just a

529
00:23:07,640 --> 00:23:10,439
Speaker 2: few full days early, just in case. I even do

530
00:23:10,480 --> 00:23:12,439
Speaker 2: that now a month to month. I always pay it

531
00:23:12,840 --> 00:23:15,520
Speaker 2: a full business day prior to the due date because

532
00:23:15,520 --> 00:23:17,920
Speaker 2: it got the little calendar drop down with a little

533
00:23:17,960 --> 00:23:20,760
Speaker 2: square around the date. And for whatever reason, I don't

534
00:23:20,760 --> 00:23:22,760
Speaker 2: know if it's like superstition or what, but I always

535
00:23:22,800 --> 00:23:24,639
Speaker 2: like to give myself a little bit of buffer, and

536
00:23:24,680 --> 00:23:26,200
Speaker 2: I always mark the day right.

537
00:23:26,080 --> 00:23:27,399
Speaker 1: Before that day, and I want to chance it. I

538
00:23:27,400 --> 00:23:28,919
Speaker 1: don't want a chance, and you definitely don't want a

539
00:23:28,960 --> 00:23:31,040
Speaker 1: chance this, So definitely pay it off in advance, just

540
00:23:30,800 --> 00:23:32,960
Speaker 1: to make sure you've got plenty of whiggle room. And

541
00:23:33,000 --> 00:23:35,000
Speaker 1: the other crucial aspect, by the way, that he needs

542
00:23:35,000 --> 00:23:37,879
Speaker 1: to consider is the damage you could potentially do to

543
00:23:38,080 --> 00:23:41,960
Speaker 1: his credit score because an extreme balance that he's racking

544
00:23:42,080 --> 00:23:44,680
Speaker 1: up on that card because of the zero percent APR

545
00:23:45,200 --> 00:23:47,280
Speaker 1: for an extended period of time, like let's say he's

546
00:23:47,280 --> 00:23:49,000
Speaker 1: got a fifteen thousand dollars ballance at the end of

547
00:23:49,040 --> 00:23:52,560
Speaker 1: this fifteen months on an eighteen thousand dollars credit line,

548
00:23:52,720 --> 00:23:54,040
Speaker 1: that could do a whole lot of damage. That could

549
00:23:54,040 --> 00:23:56,879
Speaker 1: bite him in the butt in regards to his credit utilization,

550
00:23:56,960 --> 00:23:59,160
Speaker 1: that goes through the roof, that brings his score down.

551
00:23:59,440 --> 00:24:01,440
Speaker 1: And especially if you're looking to make a major purchase

552
00:24:01,600 --> 00:24:04,560
Speaker 1: with and take a loan out for that major purchase,

553
00:24:05,080 --> 00:24:07,240
Speaker 1: buying a home something like that, it could impact in

554
00:24:07,280 --> 00:24:09,879
Speaker 1: a massive way. This could be this could be cheap,

555
00:24:09,960 --> 00:24:12,440
Speaker 1: not frugal, and it could really come back to cost

556
00:24:12,480 --> 00:24:14,320
Speaker 1: you a lot more money than you're making in this

557
00:24:14,440 --> 00:24:16,920
Speaker 1: like tiny little arbitrage which you're trying to pull off.

558
00:24:16,960 --> 00:24:18,720
Speaker 1: So this is something Matt that I probably would have

559
00:24:18,760 --> 00:24:20,560
Speaker 1: done like ten years ago, But I'm not really willing

560
00:24:20,600 --> 00:24:22,840
Speaker 1: to jump through the hoops now to arbitrage and make

561
00:24:23,040 --> 00:24:25,960
Speaker 1: a little bit of money. So I mean, but again,

562
00:24:26,160 --> 00:24:27,680
Speaker 1: like I said, I would have done it ten years

563
00:24:27,720 --> 00:24:30,320
Speaker 1: ago in all likelihood. So to each their own, there

564
00:24:30,359 --> 00:24:32,960
Speaker 1: were in different phases in life. And so I think

565
00:24:33,040 --> 00:24:35,000
Speaker 1: if Peter really wants to jump through stoop, if he's

566
00:24:35,000 --> 00:24:37,960
Speaker 1: taken into consideration all of these other things, and he

567
00:24:38,040 --> 00:24:40,560
Speaker 1: can meet the parameters so that he's not being charged

568
00:24:40,600 --> 00:24:43,159
Speaker 1: any interest or fees and he's coming out five six,

569
00:24:43,200 --> 00:24:45,680
Speaker 1: seven hundred dollars richer. Go for it. That's right. Yeah,

570
00:24:45,720 --> 00:24:47,080
Speaker 1: so Peter, best of luck to you.

571
00:24:47,119 --> 00:24:49,240
Speaker 2: And by the way, if you if this is something

572
00:24:49,680 --> 00:24:52,239
Speaker 2: where you are really buttoned up, you're really organized, you

573
00:24:52,640 --> 00:24:55,479
Speaker 2: pay attention to the details, and you are looking to

574
00:24:55,720 --> 00:24:57,800
Speaker 2: take advantage of some of the sweet offerings other the

575
00:24:57,920 --> 00:25:00,280
Speaker 2: chase that Fire preferred. They just up their bonus from

576
00:25:00,280 --> 00:25:04,320
Speaker 2: sixty thousand to eighty thousand points. That is pretty sweet,

577
00:25:04,320 --> 00:25:06,120
Speaker 2: and so we'll make sure to link to that one

578
00:25:06,240 --> 00:25:08,040
Speaker 2: in our show notes for this episode.

579
00:25:08,040 --> 00:25:10,679
Speaker 1: Always one of our favorite cards in the nature, sweeten

580
00:25:10,720 --> 00:25:11,520
Speaker 1: the pot. That's right.

581
00:25:11,520 --> 00:25:14,400
Speaker 2: But let's hear from our next listener, and he has

582
00:25:14,520 --> 00:25:17,720
Speaker 2: a question about retirement. He wants to know when he's

583
00:25:17,760 --> 00:25:19,879
Speaker 2: going to be able to start tapping those funds.

584
00:25:19,960 --> 00:25:23,399
Speaker 6: Let's hear it, Hi, Matt and Joel Daniel from Greensboro.

585
00:25:23,480 --> 00:25:25,200
Speaker 6: I'm gonna asks a question that I have not heard

586
00:25:25,240 --> 00:25:28,480
Speaker 6: discussed on all the money podcasts I listened to. I'm

587
00:25:28,520 --> 00:25:30,960
Speaker 6: fifty one and we'll retire in June twenty twenty three

588
00:25:31,000 --> 00:25:34,160
Speaker 6: with a full pension. My wife still works and it's stable.

589
00:25:34,520 --> 00:25:36,479
Speaker 6: The only debt we have is a mortgage at two

590
00:25:36,520 --> 00:25:40,600
Speaker 6: point twenty five percent. We are Louis live below our means.

591
00:25:40,880 --> 00:25:43,040
Speaker 6: We have about three months of emergency funds, but that

592
00:25:43,080 --> 00:25:45,880
Speaker 6: doesn't really matter too much because of the stable pension.

593
00:25:46,200 --> 00:25:48,440
Speaker 6: We could live off my salary as she loses her job.

594
00:25:48,920 --> 00:25:51,439
Speaker 6: My four one K investment is six percent with a

595
00:25:51,520 --> 00:25:55,159
Speaker 6: five percent match, putting seveneen percent in my wroth for

596
00:25:55,240 --> 00:25:57,520
Speaker 6: a one k, I won't be able to contribute to

597
00:25:57,560 --> 00:25:59,560
Speaker 6: my employee for a one k a wroth for one k,

598
00:25:59,640 --> 00:26:03,040
Speaker 6: so up a roth ira after retirement, I have about

599
00:26:03,080 --> 00:26:06,560
Speaker 6: sixty thousand dollars in investments all index and total market

600
00:26:06,720 --> 00:26:11,000
Speaker 6: funds with Treasury bond eyebonds of ten thousand dollars. You

601
00:26:11,040 --> 00:26:13,680
Speaker 6: two do a good job helping other people save and invest.

602
00:26:13,800 --> 00:26:16,719
Speaker 6: So my question is when can I start spending my funds?

603
00:26:16,720 --> 00:26:19,439
Speaker 6: When can I actually withdraw my investment and to enjoy

604
00:26:19,520 --> 00:26:20,959
Speaker 6: my money? Thank you?

605
00:26:21,400 --> 00:26:23,399
Speaker 1: All right? Sounds like it's party time for Daniel. It

606
00:26:23,480 --> 00:26:27,160
Speaker 1: is true. Yeah, which next month on man, Yeah, congrats

607
00:26:27,200 --> 00:26:29,639
Speaker 1: on retiring next month and it's an age of fifty

608
00:26:29,640 --> 00:26:32,440
Speaker 1: one like that is really impressive. And the work they've

609
00:26:32,480 --> 00:26:35,280
Speaker 1: done to build up that nest egg and a diverse

610
00:26:35,320 --> 00:26:39,440
Speaker 1: nest egg too is impressive. So and it's just yeah,

611
00:26:39,520 --> 00:26:41,440
Speaker 1: I don't want to say much on this, but coming

612
00:26:41,520 --> 00:26:44,600
Speaker 1: up with a plan to keep yourself busy Daniel, pursuing activities,

613
00:26:44,600 --> 00:26:48,399
Speaker 1: hobbies and relationships or volunteer opportunities, this is I think

614
00:26:48,440 --> 00:26:50,680
Speaker 1: that to help you enjoy your upcoming retirement. A lot

615
00:26:50,680 --> 00:26:53,080
Speaker 1: of people they idealize what retirement's going to look like,

616
00:26:53,119 --> 00:26:54,560
Speaker 1: and then they get there and they're like, oh, what

617
00:26:54,600 --> 00:26:57,080
Speaker 1: do I do? And maybe that first month is great,

618
00:26:57,119 --> 00:27:00,600
Speaker 1: You're relaxing, and then you're like, I I'm at a loss.

619
00:27:00,640 --> 00:27:02,399
Speaker 1: I don't have any I don't know what my purpose

620
00:27:02,440 --> 00:27:04,720
Speaker 1: is anymore. And so I think knowing what your purpose

621
00:27:04,800 --> 00:27:07,080
Speaker 1: is going to be when you do leave work next

622
00:27:07,080 --> 00:27:09,399
Speaker 1: month is important. But it sounds like you've already got

623
00:27:09,400 --> 00:27:12,680
Speaker 1: the essential essential expenses taken care of. With this recurring

624
00:27:12,680 --> 00:27:15,040
Speaker 1: pension payment you're going to be receiving. Your wife's salary

625
00:27:15,080 --> 00:27:18,200
Speaker 1: is just gravy, which is amazing. And so now it's

626
00:27:18,240 --> 00:27:21,000
Speaker 1: time to start thinking big about what you want retirement

627
00:27:21,119 --> 00:27:23,119
Speaker 1: to look like for you guys, which which really I

628
00:27:23,119 --> 00:27:24,800
Speaker 1: think means asking a lot of big questions.

629
00:27:24,920 --> 00:27:27,800
Speaker 2: Ooh yeah, yeah, it's less a matter of here is

630
00:27:28,080 --> 00:27:32,680
Speaker 2: exactly when you can withdraw from where, But it's more like, well,

631
00:27:32,680 --> 00:27:35,760
Speaker 2: what do you want retirement to look like? For instance,

632
00:27:35,800 --> 00:27:39,160
Speaker 2: like how much longer does your wife how much longer

633
00:27:39,200 --> 00:27:40,959
Speaker 2: does she want to keep working? Because it's nice that

634
00:27:41,000 --> 00:27:44,600
Speaker 2: she doesn't have to, But losing that income might mean

635
00:27:44,760 --> 00:27:47,840
Speaker 2: cramping your lifestyle. It might means happening those dollars that

636
00:27:47,880 --> 00:27:50,600
Speaker 2: are earmarked for retirement in order to keep it up.

637
00:27:50,760 --> 00:27:53,280
Speaker 2: And by the way, you mentioned opening a roth ira

638
00:27:53,560 --> 00:27:56,399
Speaker 2: once you no longer have access to contribute to your

639
00:27:56,400 --> 00:27:58,359
Speaker 2: four to one k, well you only are going to

640
00:27:58,359 --> 00:28:01,399
Speaker 2: have access to contribute to an IRA as long as

641
00:28:01,440 --> 00:28:04,240
Speaker 2: your wife is working, because your pension income does not

642
00:28:04,400 --> 00:28:07,040
Speaker 2: qualify you to be able to contribute to an IRA,

643
00:28:07,200 --> 00:28:09,800
Speaker 2: So keep that in mind as well. But as far

644
00:28:09,800 --> 00:28:12,600
Speaker 2: as the different lifestyle questions like do you see yourselves

645
00:28:12,640 --> 00:28:16,320
Speaker 2: traveling internationally for a month each year? Well, if so,

646
00:28:16,440 --> 00:28:18,439
Speaker 2: that nesteg will likely need to grow in order to

647
00:28:18,480 --> 00:28:21,040
Speaker 2: fund all those all those fun trips, or you know,

648
00:28:21,040 --> 00:28:22,960
Speaker 2: maybe your lifestyle maybe your budget's just going to stay

649
00:28:22,960 --> 00:28:25,760
Speaker 2: the same. Is it your goal to give a certain

650
00:28:25,800 --> 00:28:28,840
Speaker 2: amount of money to your kids or with whatever money

651
00:28:28,840 --> 00:28:30,240
Speaker 2: you have left over, are you just planning to give

652
00:28:30,240 --> 00:28:33,000
Speaker 2: it the charity. There are so many different goals here

653
00:28:33,080 --> 00:28:36,080
Speaker 2: that you could potentially set for yourselves. There's so many options,

654
00:28:36,480 --> 00:28:39,240
Speaker 2: and when you decided to tap those funds is going

655
00:28:39,280 --> 00:28:41,640
Speaker 2: to largely depend on the role that that money is

656
00:28:41,680 --> 00:28:43,920
Speaker 2: going to play. It truly does depend on what it

657
00:28:43,960 --> 00:28:45,719
Speaker 2: is that you're seeking after and what you want your

658
00:28:45,720 --> 00:28:48,080
Speaker 2: life to look like. Yeah, so there's definitely an introspection

659
00:28:48,280 --> 00:28:51,160
Speaker 2: factor here, yeah, and some worth that work that your wife,

660
00:28:51,520 --> 00:28:52,920
Speaker 2: you and your wife need to do in order to

661
00:28:52,960 --> 00:28:55,160
Speaker 2: kind of figure out, well, what does it look like

662
00:28:55,200 --> 00:28:57,640
Speaker 2: and what is the point of this money. But it's

663
00:28:57,640 --> 00:29:00,760
Speaker 2: also important to mention method there is some of this

664
00:29:00,840 --> 00:29:02,560
Speaker 2: money is under locking key to a certain extent for

665
00:29:02,600 --> 00:29:05,040
Speaker 2: a little while. It's locked away for the better part

666
00:29:05,080 --> 00:29:07,160
Speaker 2: of the next decade until you're fifty nine and a

667
00:29:07,200 --> 00:29:09,080
Speaker 2: half for both your four to one K and your

668
00:29:09,120 --> 00:29:11,400
Speaker 2: IRA as well, unless you want to pay tax and

669
00:29:11,400 --> 00:29:14,760
Speaker 2: penalty to take it out, which isn't ideal. And so

670
00:29:14,960 --> 00:29:17,320
Speaker 2: especially since this is money that's going to be necessary

671
00:29:17,360 --> 00:29:20,760
Speaker 2: over three or probably even four decades, you don't want

672
00:29:20,800 --> 00:29:22,840
Speaker 2: to touch it when you're gonna have to pay the

673
00:29:22,840 --> 00:29:25,520
Speaker 2: penalty right before that fifty nine and a half age,

674
00:29:25,920 --> 00:29:28,600
Speaker 2: and so hopefully your retirement dollars have grown maybe double

675
00:29:28,680 --> 00:29:31,280
Speaker 2: by then. That would be part for the course, right,

676
00:29:31,320 --> 00:29:34,280
Speaker 2: that would that would make sense. I would say that's probably,

677
00:29:34,400 --> 00:29:37,160
Speaker 2: that's likely. The next goal would be then to hold

678
00:29:37,200 --> 00:29:39,880
Speaker 2: off taking Social Security as long as you can if

679
00:29:39,920 --> 00:29:43,000
Speaker 2: you're remaining good health. But social Security combined with your

680
00:29:43,000 --> 00:29:45,640
Speaker 2: pension and then maybe even a paidoff mortgage at that point,

681
00:29:45,840 --> 00:29:48,120
Speaker 2: that means you can likely feel really comfortable spending a

682
00:29:48,160 --> 00:29:50,600
Speaker 2: decent chunk of that nest egg between the ages of

683
00:29:50,680 --> 00:29:54,000
Speaker 2: fifty nine and a half and seventy. And so that's

684
00:29:54,080 --> 00:29:57,080
Speaker 2: kind of how I would envision this money as bridging

685
00:29:57,120 --> 00:30:00,000
Speaker 2: the gap for that decade, unless, that is, you have

686
00:30:00,160 --> 00:30:02,960
Speaker 2: significant giving goals, right, and then you probably don't want

687
00:30:03,000 --> 00:30:04,959
Speaker 2: to tap most of that money. You want to make

688
00:30:05,280 --> 00:30:08,600
Speaker 2: sure you leave some of that invested for those giving

689
00:30:08,640 --> 00:30:11,080
Speaker 2: endeavors that you have. And by the way, there are

690
00:30:11,160 --> 00:30:13,920
Speaker 2: other ways to tap that money early, like a Roth

691
00:30:13,920 --> 00:30:19,040
Speaker 2: conversion ladder or this thing called ESPP. It's equal substantial payments, right,

692
00:30:19,200 --> 00:30:20,680
Speaker 2: Equal substantial payment plans like that?

693
00:30:20,720 --> 00:30:23,320
Speaker 1: Yeah, yeah, And so basically you can pull that money

694
00:30:23,320 --> 00:30:27,680
Speaker 1: out penalty free if you adhere to certain rigorous withdrawal methods,

695
00:30:27,960 --> 00:30:29,520
Speaker 1: and we'll actually link to a post in our show

696
00:30:29,520 --> 00:30:32,480
Speaker 1: notes that does a good job describing it and telling

697
00:30:32,560 --> 00:30:35,520
Speaker 1: you how that works. There are ways of going about it,

698
00:30:35,560 --> 00:30:37,600
Speaker 1: but tough on to know it's possible, but even still

699
00:30:38,240 --> 00:30:40,360
Speaker 1: that might not be the best option exactly.

700
00:30:40,400 --> 00:30:43,160
Speaker 2: And honestly, I feel like that there is a way

701
00:30:43,200 --> 00:30:45,280
Speaker 2: to start drawing on the money once you are of

702
00:30:45,400 --> 00:30:48,040
Speaker 2: age without it feeling like you're completely flipping a switch,

703
00:30:48,040 --> 00:30:51,320
Speaker 2: because going from saving to spending it isn't like an

704
00:30:51,320 --> 00:30:53,440
Speaker 2: on or off sort of thing, And I think there

705
00:30:53,480 --> 00:30:55,800
Speaker 2: are ways for you to slowly kind of start making

706
00:30:55,800 --> 00:30:58,440
Speaker 2: some withdraws from those accounts once you're eligible, without it

707
00:30:58,440 --> 00:31:00,840
Speaker 2: feeling like you are completely depla eating those funds where

708
00:31:00,880 --> 00:31:03,640
Speaker 2: you're kind of just waiting out there into the water,

709
00:31:04,120 --> 00:31:07,880
Speaker 2: as compared to just doing like a cannonball. And the

710
00:31:07,920 --> 00:31:09,680
Speaker 2: same thing with me when it comes to like the

711
00:31:09,680 --> 00:31:12,000
Speaker 2: lifestyle that you're going to lead as well, I think

712
00:31:12,000 --> 00:31:14,560
Speaker 2: there are ways for you even now. I mean, you

713
00:31:14,600 --> 00:31:16,760
Speaker 2: know you're a month out, but there are ways now

714
00:31:16,800 --> 00:31:19,120
Speaker 2: for you to proactively start thinking about how it is

715
00:31:19,160 --> 00:31:21,800
Speaker 2: that you want to spend your time. Yeah, but whether

716
00:31:21,840 --> 00:31:23,360
Speaker 2: it's how you spend your time or how you spend

717
00:31:23,360 --> 00:31:26,080
Speaker 2: your money. Some retirees do find it hard to actually

718
00:31:26,160 --> 00:31:28,520
Speaker 2: spend the money that they've saved. And in your case,

719
00:31:28,560 --> 00:31:30,800
Speaker 2: you guys have been really prudent for a long time.

720
00:31:30,880 --> 00:31:33,760
Speaker 2: You've saved wisely, and you've stuck it out. You've got

721
00:31:33,760 --> 00:31:36,000
Speaker 2: that baller pension. But we also want you to be

722
00:31:36,040 --> 00:31:38,720
Speaker 2: able to enjoy that money that you've been able to amass.

723
00:31:39,040 --> 00:31:41,720
Speaker 2: You know that that four percent rule exists for a reason.

724
00:31:41,960 --> 00:31:43,680
Speaker 2: We want to make sure that you're able to live

725
00:31:43,840 --> 00:31:47,200
Speaker 2: into your much later years without running out of money.

726
00:31:47,240 --> 00:31:50,320
Speaker 2: But even that, it's not perfect. It's not you're not

727
00:31:50,360 --> 00:31:53,600
Speaker 2: going to be able to exactly pinpoint and determine exactly

728
00:31:53,600 --> 00:31:55,480
Speaker 2: how much money you are going to be withdrawing every

729
00:31:55,480 --> 00:31:57,560
Speaker 2: single year in order to have the exact right amount

730
00:31:57,560 --> 00:31:59,400
Speaker 2: of money when you die. No one knows what that's

731
00:31:59,440 --> 00:32:00,160
Speaker 2: actually going to being.

732
00:32:00,280 --> 00:32:02,520
Speaker 1: At the same time, when you have guaranteed income which

733
00:32:02,560 --> 00:32:04,560
Speaker 1: a pension provides, and if that covers most of your

734
00:32:04,640 --> 00:32:08,120
Speaker 1: essential needs, that make that means you have even more

735
00:32:08,120 --> 00:32:10,560
Speaker 1: options to your disposal. The four percent rule is really

736
00:32:10,600 --> 00:32:12,600
Speaker 1: about living solely off your portfolio. So if you have

737
00:32:12,680 --> 00:32:15,040
Speaker 1: other sources of income like a pension. Yeah, it means

738
00:32:15,080 --> 00:32:17,200
Speaker 1: you have just a lot more options when it comes

739
00:32:17,240 --> 00:32:19,640
Speaker 1: to how and when you tap those funds. You don't

740
00:32:19,640 --> 00:32:22,200
Speaker 1: want to be too conservative for going life changing experiences

741
00:32:22,240 --> 00:32:24,959
Speaker 1: because you're pinching pennies, right, But you also don't want

742
00:32:25,000 --> 00:32:27,760
Speaker 1: to become a spend thrift. And but I'm not really

743
00:32:27,760 --> 00:32:31,080
Speaker 1: worried about Daniel going that route considering how diligent he's been.

744
00:32:31,360 --> 00:32:34,320
Speaker 1: So Daniel, there is no no uh when I'm don't.

745
00:32:34,400 --> 00:32:36,720
Speaker 1: He's like, I want to enjoy my money, right, which

746
00:32:36,720 --> 00:32:38,840
Speaker 1: I appreciate. Ready, He's like, I've done the hard work

747
00:32:38,840 --> 00:32:40,160
Speaker 1: and now I do want to enjoy it. But if

748
00:32:40,200 --> 00:32:43,600
Speaker 1: you close it all in like five years, I hope not, Daniel,

749
00:32:43,640 --> 00:32:45,280
Speaker 1: what have you done? But even still, like if you

750
00:32:45,320 --> 00:32:47,400
Speaker 1: if you don't don't move into a fancy your house,

751
00:32:47,400 --> 00:32:49,560
Speaker 1: you keep the house with the low mortgage. You know,

752
00:32:49,640 --> 00:32:52,280
Speaker 1: you make sure you're not outstripping that four percent rule

753
00:32:52,440 --> 00:32:54,600
Speaker 1: by a massive amount. But I've even talked to my parents,

754
00:32:54,640 --> 00:32:57,240
Speaker 1: like to, in order to delay taking social Security, taking

755
00:32:57,280 --> 00:32:59,600
Speaker 1: six percent out of their portfolio a year makes more

756
00:32:59,640 --> 00:33:03,080
Speaker 1: sense than tapping social Security earlier because because that guaranteed

757
00:33:03,080 --> 00:33:05,440
Speaker 1: eight percent return that you get so that is definitely

758
00:33:05,440 --> 00:33:07,880
Speaker 1: one important factor in the equation, But then so are

759
00:33:07,920 --> 00:33:10,520
Speaker 1: the personal goals lot's take into consideration here. But I

760
00:33:10,520 --> 00:33:12,600
Speaker 1: feel like if anybody can hit the nail on the head,

761
00:33:12,880 --> 00:33:15,720
Speaker 1: can spend without overdoing it, it's probably gonna be Daniel.

762
00:33:15,720 --> 00:33:17,320
Speaker 1: But Matt, we got a couple other questions to get to,

763
00:33:17,320 --> 00:33:19,600
Speaker 1: including a listener who wants to know whether or not

764
00:33:19,680 --> 00:33:22,160
Speaker 1: she should keep a car that she loves in her life.

765
00:33:22,240 --> 00:33:23,960
Speaker 1: We'll get to that and more right for this.

766
00:33:33,640 --> 00:33:35,240
Speaker 2: Right we are back from the break, and we've got

767
00:33:35,280 --> 00:33:38,320
Speaker 2: two more questions to get to, including a question from

768
00:33:38,320 --> 00:33:40,080
Speaker 2: a listener who is wanting to know how to respond

769
00:33:40,120 --> 00:33:42,840
Speaker 2: to those folks who are reaching out about buying her home,

770
00:33:42,960 --> 00:33:45,000
Speaker 2: like with an all cash offer. But before we talk

771
00:33:45,040 --> 00:33:47,040
Speaker 2: about homes, let's talk about cars.

772
00:33:47,280 --> 00:33:50,160
Speaker 7: Hello. My name is Amy, and I live in northern California.

773
00:33:50,560 --> 00:33:54,520
Speaker 7: I appreciate the educational and non judgmental approach your podcast takes.

774
00:33:54,880 --> 00:33:57,560
Speaker 7: After listening to a few episodes, I've been thinking about

775
00:33:57,560 --> 00:34:00,440
Speaker 7: my finances in a totally different way. On one of

776
00:34:00,440 --> 00:34:02,720
Speaker 7: your episodes, you guys talked about if you drive your

777
00:34:02,720 --> 00:34:05,760
Speaker 7: car less than seventy five hundred miles per year, insurance

778
00:34:05,840 --> 00:34:09,000
Speaker 7: rates might qualify for a reduction. I started working from

779
00:34:09,000 --> 00:34:12,480
Speaker 7: home last year, which significantly lowered my annual mileage. So

780
00:34:12,680 --> 00:34:15,200
Speaker 7: after listening to that episode, I thought, why not. I

781
00:34:15,280 --> 00:34:17,719
Speaker 7: called my insurance company and now save twenty dollars per

782
00:34:17,719 --> 00:34:21,360
Speaker 7: month on insurance premiums. Thank you for that. After listening

783
00:34:21,360 --> 00:34:24,080
Speaker 7: to Money Gears, I'm considering selling my second car, a

784
00:34:24,080 --> 00:34:28,400
Speaker 7: Mini Cooper Countryman Super fun to accelerate Gear three. I

785
00:34:28,440 --> 00:34:31,040
Speaker 7: have another vehicle that is paid off. The money not

786
00:34:31,160 --> 00:34:33,200
Speaker 7: spent on the second car would be diverted to the

787
00:34:33,239 --> 00:34:36,200
Speaker 7: debt keeping me in Gear three. I can afford the car.

788
00:34:36,360 --> 00:34:38,680
Speaker 7: It's fun to drive, the interest rate is low, and

789
00:34:38,719 --> 00:34:41,880
Speaker 7: it's nice having a backup vehicle. My backup car is

790
00:34:41,880 --> 00:34:44,440
Speaker 7: a two thousand and seven minivan, a reliable car, but

791
00:34:44,480 --> 00:34:46,719
Speaker 7: it makes me feel old driving it. My son is

792
00:34:46,760 --> 00:34:49,360
Speaker 7: also driving, so it's nice not sharing a vehicle. But

793
00:34:49,440 --> 00:34:52,760
Speaker 7: my inner voice, which now includes your voices, is saying

794
00:34:52,800 --> 00:34:56,640
Speaker 7: getting financially stable isn't always sexy and will take sacrifice

795
00:34:57,120 --> 00:35:00,279
Speaker 7: in this case, mostly to my ego. What is exciting

796
00:35:00,400 --> 00:35:02,040
Speaker 7: is the thought of being out of Gear three in

797
00:35:02,080 --> 00:35:05,400
Speaker 7: two years rather than six. If you have any confirming thoughts,

798
00:35:05,400 --> 00:35:07,879
Speaker 7: on this, I could use the push, though, I think

799
00:35:07,920 --> 00:35:10,000
Speaker 7: I know what needs to happen. Thanks.

800
00:35:10,400 --> 00:35:11,000
Speaker 1: So a couple things.

801
00:35:11,360 --> 00:35:13,920
Speaker 2: I love that we're voices that are bouncing around in

802
00:35:13,960 --> 00:35:17,680
Speaker 2: her head now after only listening for a few episodes.

803
00:35:17,200 --> 00:35:18,920
Speaker 1: Although at some point she's gonna end up in a

804
00:35:18,960 --> 00:35:22,040
Speaker 1: straight chat in a padded room and I hear the

805
00:35:22,120 --> 00:35:24,680
Speaker 1: voices now, don't stop talking to me about saving money.

806
00:35:24,719 --> 00:35:27,399
Speaker 2: I love that we are challenging her, but like she said,

807
00:35:27,400 --> 00:35:29,120
Speaker 2: in a non judgmental way, that's that's.

808
00:35:29,040 --> 00:35:30,560
Speaker 1: What we're all about here at Goal. And by the.

809
00:35:30,520 --> 00:35:32,960
Speaker 2: Way, she mentioned her Mini Cooper, which totally makes me

810
00:35:33,120 --> 00:35:34,479
Speaker 2: did you ever watch The Italian Job?

811
00:35:34,920 --> 00:35:37,400
Speaker 1: Yeah? Well, I've watched everything with Edward Norton.

812
00:35:37,200 --> 00:35:39,680
Speaker 2: The bank heist movie, so love him well.

813
00:35:39,680 --> 00:35:40,719
Speaker 1: One of the things she meant, I love that she

814
00:35:40,719 --> 00:35:42,520
Speaker 1: shared the money win too, So it's like she's already

815
00:35:42,520 --> 00:35:44,080
Speaker 1: taking an action, and she's trying to take a lot

816
00:35:44,120 --> 00:35:45,719
Speaker 1: of action, and she's already done some of the low

817
00:35:45,719 --> 00:35:48,080
Speaker 1: hanging fruit like twenty bucks a month, though, is meaningful

818
00:35:48,080 --> 00:35:49,960
Speaker 1: because we've talked about the rule of one seventy three

819
00:35:50,200 --> 00:35:51,640
Speaker 1: in a recent Hot of Money newsletter.

820
00:35:51,680 --> 00:35:53,880
Speaker 2: Twenty bucks, on his face doesn't sound like a whole lot.

821
00:35:53,960 --> 00:35:56,399
Speaker 1: No, it doesn't. But when you're saving that every single month,

822
00:35:56,400 --> 00:35:58,279
Speaker 1: the rule of one seventy three says that over the

823
00:35:58,280 --> 00:36:00,480
Speaker 1: course of a decade, if you invest that money instead,

824
00:36:00,760 --> 00:36:03,560
Speaker 1: that's going to be worth three four hundred and sixty dollars.

825
00:36:03,640 --> 00:36:06,080
Speaker 1: So kudos to Amy, she's doing awesome stuff. That's not

826
00:36:06,160 --> 00:36:10,239
Speaker 1: chump change. And yeah, so since you're relatively new here,

827
00:36:10,239 --> 00:36:12,440
Speaker 1: we should give you our thoughts on cars. Matt and

828
00:36:12,480 --> 00:36:14,799
Speaker 1: I we view them radically different than most people do,

829
00:36:15,040 --> 00:36:18,400
Speaker 1: and it's been our goal to bring down our vehicle

830
00:36:18,440 --> 00:36:21,280
Speaker 1: costs as much as possible in our own individual families.

831
00:36:21,400 --> 00:36:23,520
Speaker 1: We want to see more how to money listeners ditching

832
00:36:23,560 --> 00:36:26,160
Speaker 1: a car from their life, like having fewer rides, having

833
00:36:26,200 --> 00:36:27,680
Speaker 1: fewer cars that they're paying for, because it's not just

834
00:36:27,719 --> 00:36:30,479
Speaker 1: about the cash that you get from selling that sweet

835
00:36:30,520 --> 00:36:33,120
Speaker 1: Mini Cooper that you love. It's about the recurring costs

836
00:36:33,120 --> 00:36:36,920
Speaker 1: that you're going to avoid, maintenance, insurance, depreciation. The longer

837
00:36:36,960 --> 00:36:40,080
Speaker 1: it sits there in your life, the more it is

838
00:36:40,160 --> 00:36:43,800
Speaker 1: going to depreciate, go down in value, and you're eating

839
00:36:44,239 --> 00:36:48,279
Speaker 1: that from a financial perspective, So yeah, we are. We're

840
00:36:48,280 --> 00:36:52,120
Speaker 1: always going to preach the fewer cars, smaller transportation budget

841
00:36:52,200 --> 00:36:54,240
Speaker 1: sort of way of viewing things.

842
00:36:54,480 --> 00:36:57,120
Speaker 2: Yeah, and basically what you're getting agile is the total

843
00:36:57,239 --> 00:37:00,239
Speaker 2: cost of car ownership, the average annual cost of that.

844
00:37:00,280 --> 00:37:03,319
Speaker 2: In this country, it's nearing ten thousand dollars to own

845
00:37:03,360 --> 00:37:05,640
Speaker 2: and maintain and run a vehicle. That is a lot

846
00:37:05,680 --> 00:37:08,360
Speaker 2: of money. And granted, it's possible to bring some of

847
00:37:08,360 --> 00:37:10,440
Speaker 2: these annual costs down, and you can do that by

848
00:37:10,520 --> 00:37:14,560
Speaker 2: driving older vehicles because depreciation is a main factor in

849
00:37:14,600 --> 00:37:17,319
Speaker 2: that overall cost of ownership, and so a way that

850
00:37:17,360 --> 00:37:20,000
Speaker 2: you can avoid that is just by driving a much

851
00:37:20,040 --> 00:37:21,120
Speaker 2: older car.

852
00:37:20,880 --> 00:37:22,920
Speaker 1: Like car seven minivan. That's a perfect sweet spot.

853
00:37:22,960 --> 00:37:25,200
Speaker 2: Er absolutely, I mean oftentimes you're going to see the

854
00:37:25,200 --> 00:37:27,920
Speaker 2: most appreciation in the first five years. So even anything

855
00:37:27,960 --> 00:37:30,480
Speaker 2: that's even just five years old, you're going to not

856
00:37:30,640 --> 00:37:33,600
Speaker 2: feel the impacts of a depreciation as much, not going

857
00:37:33,640 --> 00:37:36,160
Speaker 2: to hit you as hard exactly. And we're not sure

858
00:37:36,200 --> 00:37:39,200
Speaker 2: how old your Mini Cooper is Mini Cooper Countryman, so

859
00:37:39,239 --> 00:37:39,600
Speaker 2: it's like.

860
00:37:39,520 --> 00:37:40,399
Speaker 1: The bigger version.

861
00:37:40,400 --> 00:37:43,640
Speaker 2: Oh yeah, but yeah, that car is leaking cash even

862
00:37:43,680 --> 00:37:46,000
Speaker 2: when it doesn't feel like it is. That's just what

863
00:37:46,080 --> 00:37:48,479
Speaker 2: cars due to us. In addition to you actually having

864
00:37:48,520 --> 00:37:51,839
Speaker 2: a car payment on that car as well. But you know,

865
00:37:52,000 --> 00:37:54,880
Speaker 2: we understand like having a fun second car like this

866
00:37:54,960 --> 00:37:57,880
Speaker 2: would be Honestly, it would be a reasonable decision if

867
00:37:57,920 --> 00:38:00,360
Speaker 2: you were later, if you were further along within the

868
00:38:00,360 --> 00:38:02,560
Speaker 2: money gears. You know, after you've had some years of

869
00:38:02,880 --> 00:38:05,680
Speaker 2: debt paydown, you've built up some wealth. But we don't

870
00:38:05,760 --> 00:38:08,360
Speaker 2: love the choice given where you are. You said that

871
00:38:08,400 --> 00:38:10,480
Speaker 2: you're in money gear three, which means you've got some

872
00:38:10,600 --> 00:38:13,239
Speaker 2: high interest rate debt in your life. Oftentimes that means

873
00:38:13,280 --> 00:38:15,640
Speaker 2: credit cards, and with credit card interest rates hovering around

874
00:38:15,640 --> 00:38:18,880
Speaker 2: twenty percent, you are paying out the nose in interest.

875
00:38:19,200 --> 00:38:20,160
Speaker 1: And honestly, that's.

876
00:38:20,040 --> 00:38:23,560
Speaker 2: What makes this such a difficult car to hang on to,

877
00:38:23,640 --> 00:38:25,440
Speaker 2: exactly when you're paying interest towards that when you should

878
00:38:25,480 --> 00:38:28,040
Speaker 2: be paying off some of that higher rate interest debt.

879
00:38:28,160 --> 00:38:31,000
Speaker 1: Yeah. And she also said, Matt, she said that she

880
00:38:31,040 --> 00:38:34,600
Speaker 1: can afford this car. And I don't mean this in

881
00:38:34,640 --> 00:38:37,240
Speaker 1: a disparaging way, but the truth is, can you actually

882
00:38:37,239 --> 00:38:39,279
Speaker 1: afford this car. It's not like it's in danger of

883
00:38:39,280 --> 00:38:42,080
Speaker 1: getting repossessed or anything, of course, but in being able

884
00:38:42,120 --> 00:38:43,880
Speaker 1: to make payments.

885
00:38:43,160 --> 00:38:45,520
Speaker 2: Actually she is making the payments on it, so.

886
00:38:45,560 --> 00:38:47,040
Speaker 1: But being able to make the payments or not being

887
00:38:47,040 --> 00:38:48,920
Speaker 1: forced to sell it doesn't necessarily mean that you can

888
00:38:48,960 --> 00:38:51,239
Speaker 1: afford it, sure, and so so much depends on what

889
00:38:51,280 --> 00:38:53,480
Speaker 1: your goals are, and it seems like those are shifting amy,

890
00:38:53,600 --> 00:38:56,359
Speaker 1: which is great. Like we love seeing that. We are

891
00:38:56,840 --> 00:38:59,200
Speaker 1: of the belief that one of the best things money

892
00:38:59,200 --> 00:39:02,399
Speaker 1: can buy is independence, and so if you're sacrificing quite

893
00:39:02,400 --> 00:39:06,040
Speaker 1: a bit of that for a cute second car, that's

894
00:39:06,040 --> 00:39:08,319
Speaker 1: certainly your prerogative, but it's not what we'd recommended. So,

895
00:39:08,640 --> 00:39:11,520
Speaker 1: I mean, what other awesome potential future splurges might you

896
00:39:11,560 --> 00:39:13,600
Speaker 1: be missing out on by keeping this car in your life.

897
00:39:13,640 --> 00:39:16,880
Speaker 1: That's a good question, because you are preventing something in

898
00:39:16,920 --> 00:39:19,720
Speaker 1: the future by continuing to keep maybe that high interestrate

899
00:39:19,760 --> 00:39:22,840
Speaker 1: debt around, by keeping this car around, and by taking

900
00:39:22,840 --> 00:39:26,080
Speaker 1: a longer path towards more financial freedom in your life,

901
00:39:26,080 --> 00:39:27,680
Speaker 1: not to mention the stress that you pile on top

902
00:39:27,719 --> 00:39:30,160
Speaker 1: of it. So is that car worth all of those

903
00:39:30,160 --> 00:39:32,560
Speaker 1: things it? Now? Can you afford it?

904
00:39:32,680 --> 00:39:32,799
Speaker 4: Right?

905
00:39:33,560 --> 00:39:35,239
Speaker 1: A lot of people say they can afford something, but

906
00:39:35,520 --> 00:39:37,480
Speaker 1: the reality is they're not paying themselves first, they haven't

907
00:39:37,520 --> 00:39:39,919
Speaker 1: been investing or saving, and they still have debt linker

908
00:39:39,960 --> 00:39:42,680
Speaker 1: in their life, and so it's hard. I don't know.

909
00:39:42,680 --> 00:39:46,359
Speaker 1: Affordability is like an interesting word to use because, yeah,

910
00:39:46,400 --> 00:39:47,960
Speaker 1: you'll not be able to make the payments, but can

911
00:39:48,000 --> 00:39:50,799
Speaker 1: you really afford it when we're talking about trying to

912
00:39:50,800 --> 00:39:51,800
Speaker 1: reach financial independence?

913
00:39:51,840 --> 00:39:53,880
Speaker 2: That's right, Yeah, And she also mentioned she liked the

914
00:39:53,920 --> 00:39:56,040
Speaker 2: idea of hanging on to it because her son's driving

915
00:39:56,080 --> 00:39:58,000
Speaker 2: as well, and so they don't have to worry about

916
00:39:58,320 --> 00:39:59,840
Speaker 2: somebody not having a car in the house. But what

917
00:39:59,840 --> 00:40:01,799
Speaker 2: I'll say is that Kate and I our family, we've

918
00:40:01,800 --> 00:40:05,120
Speaker 2: been a one car family for fifteen years now, and

919
00:40:05,200 --> 00:40:07,719
Speaker 2: it has rarely been an issue. You just schedule it,

920
00:40:07,760 --> 00:40:10,160
Speaker 2: you need to talk about it a little bit, or honestly,

921
00:40:10,239 --> 00:40:12,400
Speaker 2: you can walk or bike, that's always an option. But

922
00:40:12,480 --> 00:40:15,279
Speaker 2: there's also the ability to uber and lyft, which isn't

923
00:40:15,320 --> 00:40:17,040
Speaker 2: something that you could do fifteen years ago because it

924
00:40:17,040 --> 00:40:19,239
Speaker 2: didn't exist here. Yeah, but it makes it so much

925
00:40:19,239 --> 00:40:22,719
Speaker 2: easier these days. Literally, I'm gonna uber or catch a

926
00:40:22,800 --> 00:40:24,800
Speaker 2: lift after we record this episode, Ea, I'm going to

927
00:40:24,840 --> 00:40:27,279
Speaker 2: go to a meeting. No big deal, totally doable. But

928
00:40:27,400 --> 00:40:29,719
Speaker 2: any something else to consider. You might want to take

929
00:40:29,719 --> 00:40:32,240
Speaker 2: advantage of the fact that your many that it's actually

930
00:40:32,400 --> 00:40:35,040
Speaker 2: gone up in value over the last couple of years.

931
00:40:35,280 --> 00:40:37,520
Speaker 2: This is a phenomena that we're not likely going to

932
00:40:37,560 --> 00:40:40,560
Speaker 2: see for years to come. It's not quite at its

933
00:40:40,560 --> 00:40:43,359
Speaker 2: peak like it was last year, about sixteen months ago.

934
00:40:43,400 --> 00:40:45,040
Speaker 2: I think that's kind of when the used car market

935
00:40:45,120 --> 00:40:47,840
Speaker 2: was at its peak. Still hot, prices were still.

936
00:40:47,680 --> 00:40:48,680
Speaker 1: Climbing at that point.

937
00:40:49,040 --> 00:40:51,719
Speaker 2: But man, get that sweet payday for a car that

938
00:40:51,760 --> 00:40:54,759
Speaker 2: you don't necessarily need, because ultimately you summed up our

939
00:40:54,800 --> 00:40:57,560
Speaker 2: view as well getting your finances in shipshape. It is

940
00:40:57,719 --> 00:41:00,840
Speaker 2: not a sexy endeavor, but you mentioned that the biggest

941
00:41:00,880 --> 00:41:03,120
Speaker 2: hit that you'll take is to the ego, and I

942
00:41:03,120 --> 00:41:05,880
Speaker 2: think it's worth that trade off, which you can mentally

943
00:41:05,920 --> 00:41:08,200
Speaker 2: power through. I like what you said too, Joel about

944
00:41:08,200 --> 00:41:11,120
Speaker 2: her goals shifting. It seems like she's got different priorities

945
00:41:11,320 --> 00:41:13,880
Speaker 2: and so align you're spending a ligne what it is

946
00:41:13,920 --> 00:41:15,960
Speaker 2: that you are going to do with your money moving forward,

947
00:41:16,040 --> 00:41:18,480
Speaker 2: with how it is that you value those things. It

948
00:41:18,480 --> 00:41:21,080
Speaker 2: doesn't matter that you already own this car. That's the

949
00:41:21,239 --> 00:41:25,160
Speaker 2: endowment effect, right like you feel or fallacy or some car. Yeah, like,

950
00:41:25,200 --> 00:41:27,560
Speaker 2: in your mind, it's worth it more to you because

951
00:41:27,600 --> 00:41:29,920
Speaker 2: of the kind of the emotional ties. But don't let

952
00:41:29,920 --> 00:41:32,959
Speaker 2: the fact that you wouldn't make that purchase today, keep

953
00:41:32,960 --> 00:41:33,719
Speaker 2: you from selling it.

954
00:41:33,800 --> 00:41:36,320
Speaker 1: Yeah, well it also makes me think Morgan House, of

955
00:41:36,360 --> 00:41:38,399
Speaker 1: who You've had on the show. We bring up quotes

956
00:41:38,400 --> 00:41:40,360
Speaker 1: from him every now and again because he's just so smart.

957
00:41:40,640 --> 00:41:42,640
Speaker 1: He used to be a valet back in college, and

958
00:41:42,680 --> 00:41:45,920
Speaker 1: he talked about how when he was parking cars, the

959
00:41:45,960 --> 00:41:48,920
Speaker 1: people driving the fancy cars, he didn't ever know what

960
00:41:48,920 --> 00:41:50,839
Speaker 1: they look like or care about them. He cared about

961
00:41:50,880 --> 00:41:52,960
Speaker 1: the cool car, like the Ferrari or whatever it was

962
00:41:53,160 --> 00:41:55,399
Speaker 1: that he was parking. And a lot of people think, oh,

963
00:41:55,400 --> 00:41:57,280
Speaker 1: if I get this car, I'm going to look cool,

964
00:41:57,480 --> 00:41:59,920
Speaker 1: and no, that's just not how people perceive you. People

965
00:42:00,080 --> 00:42:02,840
Speaker 1: don't look at the person, they look at the car itself,

966
00:42:02,880 --> 00:42:06,440
Speaker 1: and so nobody really makes that correlation between what you

967
00:42:06,520 --> 00:42:08,640
Speaker 1: drive and how they think of you. I also drive

968
00:42:08,719 --> 00:42:12,239
Speaker 1: an old Honda minivan, right, so at times I've been

969
00:42:12,239 --> 00:42:14,080
Speaker 1: self conscious, but I've really gotten over it over the

970
00:42:14,160 --> 00:42:17,000
Speaker 1: years and have learned to care less and less about

971
00:42:17,040 --> 00:42:20,719
Speaker 1: it because I'm funneling money on purpose into stuff that

972
00:42:20,760 --> 00:42:23,439
Speaker 1: I care about a whole lot more, and that gets

973
00:42:23,480 --> 00:42:25,839
Speaker 1: me excited and it actually gets me energized to drive

974
00:42:25,880 --> 00:42:27,920
Speaker 1: the old raggedy minivan a.

975
00:42:28,080 --> 00:42:30,280
Speaker 2: Badge of honor as opposed to something that you're ashamed

976
00:42:30,320 --> 00:42:32,280
Speaker 2: of or that makes you feel old exactly.

977
00:42:32,320 --> 00:42:34,640
Speaker 1: But Matt, let's get to our last question for this episode.

978
00:42:34,640 --> 00:42:37,000
Speaker 1: This one is about all those pesky home buying calls

979
00:42:37,000 --> 00:42:39,439
Speaker 1: and texts that that we all get from time to time.

980
00:42:40,239 --> 00:42:40,840
Speaker 6: Hi, Joel and.

981
00:42:40,880 --> 00:42:44,920
Speaker 4: Matt, this is Sandy from Massachusetts. I wanted to share

982
00:42:45,040 --> 00:42:47,800
Speaker 4: that over the last two weeks, I've had no less

983
00:42:47,840 --> 00:42:52,439
Speaker 4: than three postcards in my mailbox from individuals who want

984
00:42:52,480 --> 00:42:56,040
Speaker 4: to purchase my home, and they tout how they will

985
00:42:56,080 --> 00:43:00,120
Speaker 4: give a fair market price and there's no commission, and

986
00:43:00,160 --> 00:43:04,120
Speaker 4: they will take care of traditional closing costs at any rate.

987
00:43:04,200 --> 00:43:06,719
Speaker 4: I have no intention of selling, as I'm happy where

988
00:43:06,719 --> 00:43:09,319
Speaker 4: I am and I have one of those mortgages that

989
00:43:09,360 --> 00:43:12,520
Speaker 4: are less than three percent interest rate. But I was

990
00:43:12,640 --> 00:43:15,400
Speaker 4: always curious about whether or not this is ever a

991
00:43:15,440 --> 00:43:20,200
Speaker 4: good financial move for a seller versus working with an

992
00:43:20,280 --> 00:43:24,239
Speaker 4: established realtor and from the person.

993
00:43:23,920 --> 00:43:24,720
Speaker 6: Who is buying.

994
00:43:25,520 --> 00:43:28,520
Speaker 4: You know, how is this a good financial move? I'm

995
00:43:28,560 --> 00:43:31,040
Speaker 4: just curious and wondered if you could share your thoughts

996
00:43:31,120 --> 00:43:33,440
Speaker 4: on that. Thanks so much, by bye.

997
00:43:33,360 --> 00:43:35,480
Speaker 2: All right, standy, thank you so much for that question.

998
00:43:35,520 --> 00:43:37,640
Speaker 2: And we are so glad to hear that you've got

999
00:43:37,280 --> 00:43:41,080
Speaker 2: that sweet low rate under three percent, that you like

1000
00:43:41,120 --> 00:43:43,640
Speaker 2: where you are, where you're living. And so, what's up

1001
00:43:43,640 --> 00:43:47,160
Speaker 2: with these vulture like real estate buyers because they're you know,

1002
00:43:47,200 --> 00:43:49,920
Speaker 2: they often say they're going to pay fair market value,

1003
00:43:50,400 --> 00:43:53,359
Speaker 2: but it is worth it for them to make these

1004
00:43:53,400 --> 00:43:55,319
Speaker 2: offers because that's unlikely going to be the case. The

1005
00:43:55,360 --> 00:43:58,360
Speaker 2: only way to really know what the fair market value

1006
00:43:58,360 --> 00:44:01,760
Speaker 2: for your home is is to actually to actually allow

1007
00:44:01,840 --> 00:44:04,080
Speaker 2: a wide range of buyers to have a look at

1008
00:44:04,120 --> 00:44:07,000
Speaker 2: it and to let the market decide. That's how you

1009
00:44:07,040 --> 00:44:08,920
Speaker 2: figure out fair market value.

1010
00:44:09,360 --> 00:44:10,000
Speaker 1: They're willing to.

1011
00:44:09,920 --> 00:44:14,560
Speaker 2: Pay you fair what I decide is fair value. But

1012
00:44:14,600 --> 00:44:16,319
Speaker 2: most of these home buyers, they're looking for a bit

1013
00:44:16,320 --> 00:44:17,920
Speaker 2: of a deal, So it makes all the sense in

1014
00:44:17,960 --> 00:44:20,480
Speaker 2: the world for them to cast their net wide and

1015
00:44:20,520 --> 00:44:22,000
Speaker 2: to try to find a deal exactly.

1016
00:44:22,040 --> 00:44:23,960
Speaker 1: And we've talked about ways to lower your rent before

1017
00:44:23,960 --> 00:44:25,600
Speaker 1: on the show, Matt. As a tenant, you're trying to

1018
00:44:25,600 --> 00:44:27,879
Speaker 1: figure out where your landlord's pain points are. You're trying

1019
00:44:27,880 --> 00:44:31,240
Speaker 1: to alleviate those in hopes of a smaller monthly rent amount.

1020
00:44:31,320 --> 00:44:33,759
Speaker 1: And these postcard home buyers or the text message of

1021
00:44:33,800 --> 00:44:36,799
Speaker 1: the phone call home buyers. They're the ones who are

1022
00:44:36,840 --> 00:44:39,279
Speaker 1: incessantly trying to reach you to make an offer on

1023
00:44:39,320 --> 00:44:41,240
Speaker 1: your home. Get like five of those on my phone

1024
00:44:41,280 --> 00:44:44,800
Speaker 1: every single day in real all the time, and basically

1025
00:44:44,840 --> 00:44:46,520
Speaker 1: they're doing the same thing. They're trying to alleviate a

1026
00:44:46,560 --> 00:44:50,000
Speaker 1: pain point too, but it often comes at the seller's expense.

1027
00:44:50,239 --> 00:44:51,799
Speaker 1: A lot of folks don't really know what their home

1028
00:44:51,920 --> 00:44:54,160
Speaker 1: is worth. They know what they paid for their home,

1029
00:44:54,440 --> 00:44:56,319
Speaker 1: and their eyes might get as big as saucers when

1030
00:44:56,320 --> 00:44:58,359
Speaker 1: someone reaches out offering to pay them a good bit

1031
00:44:58,400 --> 00:45:00,560
Speaker 1: of money to sell the property. That doesn't mean that

1032
00:45:00,600 --> 00:45:03,480
Speaker 1: these people are paying fair market value. They're basically trying

1033
00:45:03,520 --> 00:45:05,080
Speaker 1: to make it sound like I want to make it

1034
00:45:05,080 --> 00:45:07,000
Speaker 1: easy and I'm pay you a lot of money. But

1035
00:45:07,080 --> 00:45:08,759
Speaker 1: the truth is they're not going to pay you as

1036
00:45:08,800 --> 00:45:11,000
Speaker 1: much as somebody else would if you're listened on the

1037
00:45:11,040 --> 00:45:13,640
Speaker 1: open market. I mean almost to a t, almost always,

1038
00:45:13,680 --> 00:45:16,680
Speaker 1: but they get some sort of low ball offers.

1039
00:45:16,360 --> 00:45:18,960
Speaker 2: Exactly, but I mean likely will be easier, and that's

1040
00:45:19,280 --> 00:45:22,120
Speaker 2: the fee that you're paying is the convenience.

1041
00:45:22,160 --> 00:45:24,320
Speaker 1: Basically, that's why they say we buy ugly houses.

1042
00:45:24,360 --> 00:45:26,879
Speaker 2: It's because you don't have to do anything.

1043
00:45:26,640 --> 00:45:28,759
Speaker 1: Exactly exactly, so maybe you don't have to lift a

1044
00:45:28,800 --> 00:45:31,239
Speaker 1: fingered up, you don't have to get it, show the job,

1045
00:45:31,320 --> 00:45:33,160
Speaker 1: none of that stuff, which makes it easier on you,

1046
00:45:33,200 --> 00:45:34,960
Speaker 1: but it also means it's going to be less profitable.

1047
00:45:35,080 --> 00:45:37,360
Speaker 2: Yeah, basically these are cold calls, and you know again,

1048
00:45:37,400 --> 00:45:39,520
Speaker 2: these folks are fishing, They're casting their net wide, and

1049
00:45:39,520 --> 00:45:41,480
Speaker 2: the ones doing it are often wholesalers.

1050
00:45:41,520 --> 00:45:43,240
Speaker 1: They're house flippers who.

1051
00:45:43,320 --> 00:45:45,560
Speaker 2: Can only make money if they're able to snag the

1052
00:45:45,600 --> 00:45:48,600
Speaker 2: home at a pretty drastic discount, and a lack of

1053
00:45:48,719 --> 00:45:52,839
Speaker 2: inventory is driving up these solicitations. These folks who are

1054
00:45:53,320 --> 00:45:55,759
Speaker 2: knocking on your I've never had someone knock on my door.

1055
00:45:55,960 --> 00:45:57,279
Speaker 1: I made that up. I get a lot of tech

1056
00:45:57,560 --> 00:46:00,040
Speaker 1: text voicemail. I haven't had that either. Letters though that

1057
00:46:00,040 --> 00:46:00,880
Speaker 1: would cross the line for me.

1058
00:46:01,000 --> 00:46:02,279
Speaker 2: I kind of feel like you would too, but I

1059
00:46:02,280 --> 00:46:04,400
Speaker 2: would probably take it a little more seriously because I'm like,

1060
00:46:04,400 --> 00:46:07,400
Speaker 2: oh wow, you're like right here. I still wouldn't do it.

1061
00:46:07,400 --> 00:46:10,080
Speaker 2: It's hard for investors to find deals given the current

1062
00:46:10,160 --> 00:46:14,080
Speaker 2: constraints of the market and where inventory is today, and

1063
00:46:14,120 --> 00:46:15,719
Speaker 2: so these folks are reaching out to see if if

1064
00:46:15,719 --> 00:46:17,359
Speaker 2: they can make an emotional or if they can make

1065
00:46:17,400 --> 00:46:21,160
Speaker 2: an economic plea that might resonate with you as an individual.

1066
00:46:21,400 --> 00:46:23,919
Speaker 2: I think oftentimes they're just hoping to snag a deal,

1067
00:46:24,600 --> 00:46:27,160
Speaker 2: like one deal out of five hundred postcards they send

1068
00:46:27,200 --> 00:46:30,879
Speaker 2: out or a thousand. It's not necessarily a high success rate,

1069
00:46:31,040 --> 00:46:34,520
Speaker 2: but that one sale can net them some meaningful returns.

1070
00:46:34,520 --> 00:46:36,800
Speaker 1: They're hoping there's one sucker in a thousand, basically is

1071
00:46:36,840 --> 00:46:38,640
Speaker 1: what you're saying, which is true, and they're hoping that

1072
00:46:39,040 --> 00:46:41,759
Speaker 1: one idiot comes along every now and again to sell

1073
00:46:41,800 --> 00:46:42,239
Speaker 1: them their house.

1074
00:46:42,239 --> 00:46:44,600
Speaker 2: And it's not necessarily like I don't want to as

1075
00:46:44,640 --> 00:46:47,920
Speaker 2: an individual, as like, you still have the ability to

1076
00:46:47,920 --> 00:46:50,200
Speaker 2: make your own decisions, like you still have agency to

1077
00:46:50,200 --> 00:46:51,879
Speaker 2: say yes or to say no, and to a certain

1078
00:46:51,920 --> 00:46:54,640
Speaker 2: individual out there. To them, it might make sense because

1079
00:46:54,640 --> 00:46:57,320
Speaker 2: they are like, honestly, I know that this is a teardown,

1080
00:46:57,400 --> 00:46:58,800
Speaker 2: so sure, yeah.

1081
00:46:58,680 --> 00:47:00,160
Speaker 1: Yeah, I'll sell it to you. I mean, if if

1082
00:47:00,160 --> 00:47:01,560
Speaker 1: you know that and you know they're paying you more

1083
00:47:01,600 --> 00:47:03,759
Speaker 1: than you could get elsewhere, go for it. Exactly. It's

1084
00:47:03,840 --> 00:47:05,719
Speaker 1: unlikely to be the case. It's not the case most

1085
00:47:05,760 --> 00:47:07,759
Speaker 1: of the time. That is not how these guys make

1086
00:47:07,800 --> 00:47:10,520
Speaker 1: money by paying too much for teardowns, and I don't

1087
00:47:10,520 --> 00:47:12,439
Speaker 1: think you're planning on going down this past Sandy. Sounds

1088
00:47:12,480 --> 00:47:14,400
Speaker 1: like you like your house, like where you're living. But

1089
00:47:14,480 --> 00:47:17,200
Speaker 1: to everyone else out there listening, hang up on these people.

1090
00:47:17,440 --> 00:47:19,960
Speaker 1: Don't call the number on the postcard. If they really

1091
00:47:19,960 --> 00:47:21,960
Speaker 1: want to buy your home. Most of the time you'd

1092
00:47:22,000 --> 00:47:24,520
Speaker 1: be shortsighted to take their offer. Yeah, they can get

1093
00:47:24,560 --> 00:47:26,400
Speaker 1: your money quicker, but it's going to be less money,

1094
00:47:26,600 --> 00:47:28,360
Speaker 1: and so I don't know. At least talk to a

1095
00:47:28,400 --> 00:47:31,080
Speaker 1: trusted neighborhood agent first, yeah, to see what they might

1096
00:47:31,239 --> 00:47:33,080
Speaker 1: and what they think your house could sell for. Because

1097
00:47:33,160 --> 00:47:35,600
Speaker 1: the only time it might make sense, like you said, Matt,

1098
00:47:35,680 --> 00:47:37,160
Speaker 1: is if your home needs a ton of repairs, it

1099
00:47:37,239 --> 00:47:39,399
Speaker 1: might be a teardown. You're unwilling to do these things

1100
00:47:39,400 --> 00:47:41,720
Speaker 1: in order to list it if it greases the wheels

1101
00:47:41,760 --> 00:47:43,560
Speaker 1: and makes it makes it easy to do this thing

1102
00:47:43,640 --> 00:47:45,840
Speaker 1: and staging it and all that stuff isn't in the cards.

1103
00:47:46,080 --> 00:47:48,120
Speaker 1: But even still, I would say the insights of an

1104
00:47:48,160 --> 00:47:50,799
Speaker 1: agent would be helpful because they might know something you

1105
00:47:50,800 --> 00:47:52,400
Speaker 1: don't know, and they might see that you're sitting on

1106
00:47:52,480 --> 00:47:55,200
Speaker 1: a gold mine because of the lot, location, whatever, and

1107
00:47:55,480 --> 00:47:58,319
Speaker 1: or the demand. That's particularly high in your area, and

1108
00:47:58,360 --> 00:48:00,759
Speaker 1: that you'd be short changing yourself to well to one

1109
00:48:00,800 --> 00:48:03,799
Speaker 1: of these like fly by night home buyers. So it's

1110
00:48:04,200 --> 00:48:08,120
Speaker 1: they're not evil, but they are. They're trying to make

1111
00:48:08,120 --> 00:48:10,319
Speaker 1: a bucket your expense, that's for sure. That's right man.

1112
00:48:10,360 --> 00:48:12,840
Speaker 2: But Sandy, again, we love that you've got one of

1113
00:48:12,840 --> 00:48:15,880
Speaker 2: those crazy low mortgages. Hanging on to that thing forever.

1114
00:48:16,080 --> 00:48:20,600
Speaker 2: Don't pay it down early. Instead, take any additional money

1115
00:48:20,640 --> 00:48:23,080
Speaker 2: that you might have put it towards either investing or

1116
00:48:23,120 --> 00:48:26,239
Speaker 2: any other additional financial goals that you might have. By Joel,

1117
00:48:26,280 --> 00:48:27,879
Speaker 2: let's go ahead and get back to the.

1118
00:48:27,840 --> 00:48:30,720
Speaker 1: Beer that you and I enjoyed. This was a Spring Thrills.

1119
00:48:30,800 --> 00:48:34,000
Speaker 2: This is an IPA by Pete Support, donated to us

1120
00:48:34,080 --> 00:48:36,720
Speaker 2: by our buddy Joel out there on the West Coast.

1121
00:48:36,760 --> 00:48:38,120
Speaker 2: What were your thoughts on this beer?

1122
00:48:38,280 --> 00:48:39,840
Speaker 1: So this is a West Coast beer, but to me,

1123
00:48:39,920 --> 00:48:42,040
Speaker 1: this was a perfect West Coast East Coast combo. It

1124
00:48:42,080 --> 00:48:43,840
Speaker 1: was like a hybrid. Oh yeah, it was juicy, but

1125
00:48:43,880 --> 00:48:45,880
Speaker 1: it was piny and bitter at the same time, and

1126
00:48:45,920 --> 00:48:48,000
Speaker 1: so like some of those resiny notes too, like it

1127
00:48:48,040 --> 00:48:48,800
Speaker 1: was a little sticky.

1128
00:48:49,040 --> 00:48:50,640
Speaker 2: Yeah, I feel like a good way in my mind,

1129
00:48:50,640 --> 00:48:52,799
Speaker 2: that's why I had like West Coast, West Coast, I

1130
00:48:52,840 --> 00:48:55,279
Speaker 2: get written all over it in Mama, like the East

1131
00:48:55,280 --> 00:48:58,400
Speaker 2: Coast is like the sweet orange juice, hazy juice.

1132
00:48:58,160 --> 00:49:00,520
Speaker 1: Bombs, whatever, whereas this I have some juicy elements. It

1133
00:49:00,560 --> 00:49:01,880
Speaker 1: wasn't so bit or wasn't.

1134
00:49:01,800 --> 00:49:04,760
Speaker 2: Yeah, it wasn't overly bidder. It certainly had some nice

1135
00:49:04,960 --> 00:49:06,920
Speaker 2: molts going on. Maybe it's the kind of beer that

1136
00:49:07,320 --> 00:49:09,440
Speaker 2: you know, you're sitting there after you've like gone surfing,

1137
00:49:09,480 --> 00:49:11,200
Speaker 2: you got the sex wax out, and you're kind of

1138
00:49:11,239 --> 00:49:13,719
Speaker 2: rubbing down your board making sure I think you use

1139
00:49:13,760 --> 00:49:14,959
Speaker 2: that so you don't slip off your board?

1140
00:49:15,080 --> 00:49:16,640
Speaker 1: Is that right here? Is that right? Chel you?

1141
00:49:16,640 --> 00:49:18,600
Speaker 2: You have to correct me after the fact if I'm

1142
00:49:18,600 --> 00:49:21,920
Speaker 2: saying it wrong. But Pizza Port Brewing, I've this is

1143
00:49:21,960 --> 00:49:24,279
Speaker 2: a brew that I've actually been to randomly on a

1144
00:49:24,360 --> 00:49:27,440
Speaker 2: road trip about ten years ago. I don't remember what

1145
00:49:27,560 --> 00:49:29,560
Speaker 2: I had when we went there, but I definitely know

1146
00:49:29,719 --> 00:49:32,399
Speaker 2: that I've been fortunate enough to have a Pizza Port

1147
00:49:32,680 --> 00:49:34,680
Speaker 2: beer in the past. But yeah, I'm glad that you

1148
00:49:34,719 --> 00:49:36,640
Speaker 2: and I got to enjoy this one here today on

1149
00:49:36,680 --> 00:49:37,240
Speaker 2: the podcast.

1150
00:49:37,280 --> 00:49:39,880
Speaker 1: But sure, agreed, But that's gonna do it for this episode.

1151
00:49:40,000 --> 00:49:42,160
Speaker 1: And if you have a listener question. If you've got

1152
00:49:42,160 --> 00:49:43,960
Speaker 1: a question for us, we'd love to take it. Just

1153
00:49:43,960 --> 00:49:46,239
Speaker 1: go to how to money dot com slash ask for

1154
00:49:46,360 --> 00:49:48,919
Speaker 1: the easy instruction so that you can submit a voice memo.

1155
00:49:48,960 --> 00:49:50,640
Speaker 1: Get it over our way and hopefully we can take

1156
00:49:50,640 --> 00:49:52,040
Speaker 1: it in a couple of weeks. But that's right.

1157
00:49:52,120 --> 00:49:54,080
Speaker 2: Make sure to sign up for the newsletter if you

1158
00:49:54,160 --> 00:49:55,800
Speaker 2: have not yet already done that. Just had to have

1159
00:49:55,880 --> 00:49:58,760
Speaker 2: the money dot com forward slash newsletter. We've got links

1160
00:49:58,800 --> 00:50:02,120
Speaker 2: to the newsletter and basic everything we published online because

1161
00:50:02,120 --> 00:50:04,160
Speaker 2: we want to make sure that you are getting free,

1162
00:50:04,560 --> 00:50:07,920
Speaker 2: fun and helpful content, financial content delivered to your inbox

1163
00:50:07,960 --> 00:50:10,239
Speaker 2: every Tuesday morning. It's not over the top, you know,

1164
00:50:10,360 --> 00:50:10,919
Speaker 2: just once a week.

1165
00:50:11,040 --> 00:50:13,239
Speaker 1: Yeah yeah, and it's good stuff. It's helpful and like

1166
00:50:13,280 --> 00:50:15,319
Speaker 1: you said, it's free. So also sell us your house.

1167
00:50:16,520 --> 00:50:18,879
Speaker 1: But for wait, lesson it's worth all right, let's gonna

1168
00:50:18,880 --> 00:50:21,279
Speaker 1: do it for this episode until next time. Best Friends Out,

1169
00:50:21,360 --> 00:50:22,520
Speaker 1: Best Friends Out,