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Speaker 1: Welcome to Out of Money. I'm Joel.

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Speaker 2: I am Matt, and today we're talking paper, wealth, target,

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Speaker 2: date trends, and bye bye Buffett.

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Speaker 1: You know what, buddy, this is our Friday flight where

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Speaker 1: we're going to tackle the most pressing personal finance headlines

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Speaker 1: out there, specifically how they pertain to your wallet. Joel,

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Speaker 1: you got to note here about Walmart. What's what's the

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Speaker 1: latest with Walmart?

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Speaker 2: I want to give you a big fan I want

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Speaker 2: to give a quick I'm not not a fan of Walmart.

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Speaker 1: Walmart. Yeah, so we've been doing more shopping there lately.

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Speaker 1: It's just not our you know, there's only one place

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Speaker 1: in my heart, and it's shaped like Aldi.

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Speaker 2: You should actually get an Aldie tattoo over your heart.

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Speaker 2: I think that'd be great, maybe one of these days.

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Speaker 2: So okay to two different retailer police. Then I wanted

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Speaker 2: to highlight here one that's consumer friendly in one that's

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Speaker 2: not so Walmart. And I didn't realize this until I

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Speaker 2: went in the other day. I bought some shoes from

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Speaker 2: my little dude online and turns out they were too big,

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Speaker 2: so I had to go in the store.

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Speaker 1: You're not gonna hang on to them, wait for them

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Speaker 1: to grow into them.

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Speaker 2: You're right, I probably could, but I had to go

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Speaker 2: in anyway, okay, right to buy the right size, and

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Speaker 2: they the when I got there, the price at the

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Speaker 2: store for those shoes was higher than it was online,

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Speaker 2: and they wouldn't let me do an exchange. And they

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Speaker 2: wouldn't so I could return and then I could buy

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Speaker 2: and then if but then I was going to be

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Speaker 2: spending more than what I would have paid online. So

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Speaker 2: they that I was just unfamiliar with the fact that

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Speaker 2: Walmart does not match online prices in stores, which to

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Speaker 2: me does not seem And I guess I would get

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Speaker 2: it too, because there's more third party sellers on Walmart. Now,

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Speaker 2: if it wasn't actually sold by Walmart, it's like, all right,

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Speaker 2: I get that, don't price match that. But if it

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Speaker 2: is sold in Walmart item, Yeah, if it's sold in

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Speaker 2: ship by Walmart, why wouldn't they match it?

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Speaker 1: You know, who would match that? Who's that Aldi? Would

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Speaker 1: I don't know how many pairs of shoes they're buying

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Speaker 1: an Aldi, But you know, like Kate and I we

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Speaker 1: joke about this. Anytime there's something kind of random that

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Speaker 1: we need, we just look at each other and I'm like, oh,

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Speaker 1: we've just voiced it into existence, because then you walk

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Speaker 1: down that seasonal aisle or like I swear it pops up,

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Speaker 1: it's there, Like you were recently talking about getting a

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Speaker 1: composter tapped into your home. I think it just means

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Speaker 1: that I'm just way more typical average American consumer than

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Speaker 1: maybe I would like to admit. That could be. That's

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Speaker 1: all I go.

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Speaker 2: So I highlighted I highlighted a negative store policy. Let

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Speaker 2: me highlight a positive one from best Buy. So my

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Speaker 2: dad texted me and he's like, hey, I know you're

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Speaker 2: like where you live, they're better about picking up old

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Speaker 2: electronic items and stuff like that. Can can I drop

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Speaker 2: them off at your house? And can you ask your

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Speaker 2: trash provider to pick it up? And I was like, yeah,

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Speaker 2: but you know you could take this stuff to best

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Speaker 2: Buy instead. And when you go to best Buy, look

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Speaker 2: at their like electronics recycling page. They will take almost

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Speaker 2: anything for for free. So if you've got like my

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Speaker 2: dad had, like old modems and DVD players and stuff

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Speaker 2: lying around remotes, they'll take old TV's under a certain size.

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Speaker 2: So if you're like I've kind of accumulated a lot

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Speaker 2: of junk electronics that's past their prime and they're not

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Speaker 2: you can't sell them, and you're gonna actually have to

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Speaker 2: actually pay money to dispose of them.

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Speaker 1: See take them to best Buy. I know you're supposed

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Speaker 1: to recycle, but I think there's a whole lot of folks, dude,

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Speaker 1: who are out there just tossing that stuff. You know.

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Speaker 1: I think that's probably like do you ever feel that

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Speaker 1: way about recycling?

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Speaker 2: Kind of can't with a fifty five inch TV, but

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Speaker 2: you probably can with that old murder.

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Speaker 1: But could he not sell that fifty five inch even

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Speaker 1: for like well it was maybe. I mean that's a

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Speaker 1: good point too, because like a no, no, here's a

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Speaker 1: flas screen, but like the screen just went out, you

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Speaker 1: can't sell that.

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Speaker 2: Yeah, I was gonna say, I mean maybe there's some

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Speaker 2: tinkerer hobbyists who would be interested in that.

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Speaker 1: You know. What I was gonna say was that sometimes

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Speaker 1: I feel like it is not a futile endeavor, but

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Speaker 1: like it, like recycling, like I do regular recycling. Like

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Speaker 1: this morning, even I was preparing some strawberries from my lunch,

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Speaker 1: Like what did I do with a plastic strawberry container?

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Speaker 1: Tossed it in the recycling bin, like we could know

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Speaker 1: we're even composting actually, like we are, like we're cutting

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Speaker 1: the little tops off and so hip we are reducing

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Speaker 1: our wasst and so we are doing our small little part.

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Speaker 1: But like sometimes when I think about it, I feel

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Speaker 1: like we are only moving the needle, like points zero

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Speaker 1: zero zero zero, Like I don't know, you can put

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Speaker 1: tons of zeros one percent, like just even in our country.

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Speaker 1: Like and when I start thinking about the world large,

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Speaker 1: like at large, like you think about China, if you

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Speaker 1: think about countries that are burning massive amounts of coal

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Speaker 1: fossil fuels, and how does that they handle waste, I'm

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Speaker 1: just like, man, maybe like for our little neighborhood over here,

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Speaker 1: we're doing a good thing. But I don't know, sometimes

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Speaker 1: I get discouraged when I think about just the world

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Speaker 1: at large, man, and all that's going on. Oh man,

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Speaker 1: we went broad. You should still do the right thing.

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Speaker 1: I like, we are still recycling, but sometimes I have

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Speaker 1: a hard time, I guess, get getting super excited about that.

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Speaker 1: But that being said, I'm glad you brought the policy up.

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Speaker 1: Talk about the deforestation of the Amazon rainforest. Now, Matt,

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Speaker 1: it's and it's certainly great that there are companies out

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Speaker 1: there who are processing these electronics, making sure that there's

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Speaker 1: not what is it lad and mercury getting into the

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Speaker 1: water supply and different things like that. Agree, glad that

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Speaker 1: they're taking care of that, because I don't want to

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Speaker 1: be living somewhere man where those forever chemicals and whatever.

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Speaker 1: Is that that what they're called forever chemicals? Yeah, forever

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Speaker 1: thinks forever plastics. Yeah, that's the new thing now, plastics, microplastics.

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Speaker 1: We're all eating the microplastics inside of us. It's true.

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Speaker 2: So trying to highlight something good and bad, I feel

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Speaker 2: like we have down more of the bad path.

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Speaker 1: Not bad.

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Speaker 2: Maybe, Okay, let's highlight something else that's good though here

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Speaker 2: because we talked what last week about the slate truck

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Speaker 2: that's twenty grand, which is awesome thing. Love that that's

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Speaker 2: good news. Well, now, not just our cars shrinking and

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Speaker 2: getting less expensive, but we're seeing signs that new homes

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Speaker 2: in the United States they're continuing to shrink in size.

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Speaker 2: So I think part of that is because of negative news,

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Speaker 2: the higher cost the building, and the fact that prices

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Speaker 2: are remaining elevated. Builders are like, well, I can produce

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Speaker 2: the square footage of the house that I'm building, and

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Speaker 2: I could do just fine and make a profit, and

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Speaker 2: I'm gonnapeld more buyers. So and we are seeing some

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Speaker 2: price cuts too in the housing market. We're actually going

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Speaker 2: to dedicate a whole lot of money newsletter to housing soon,

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Speaker 2: so please sign up for that. But yeah, some of

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Speaker 2: the new apartment sizes are actually shrinking in size two.

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Speaker 2: So when new apartments are being built, especially gen zs,

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Speaker 2: they're like, yeah, give me all the amenities, but give

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Speaker 2: me a tiny box in which to stick my bed

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Speaker 2: and I'll be fine. So I think this is a

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Speaker 2: good thing. I think bigger isn't always better, And in fact,

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Speaker 2: when you think about it, bigger means more maintenance costs.

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Speaker 2: It means higher utility bills. The five thousand square foot

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Speaker 2: house versus the twenty five hundred square foot house, Yeah,

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Speaker 2: it's going to cost you a lot more money to maintain.

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Speaker 2: We talked about secondary cost last week, Well you got

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Speaker 2: a factor in the secondary cost of home ownership two.

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Speaker 2: And like, I think just bigger is better mentality, maybe

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Speaker 2: it's falling by the wayside a little bit. Finally, I

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Speaker 2: just think being content to live in smaller quarters, it

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Speaker 2: just it means less money going towards housing, and more

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Speaker 2: money that you have to save and invest to grow

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Speaker 2: your net worth, to have more options when it comes

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Speaker 2: to work and free time. The more we tossed into

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Speaker 2: our homes, the less flexibility we have.

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Speaker 1: Totally agree. Yeah, I also wonder if the pendulum is

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Speaker 1: swinging back as well as fewer folks are working from home.

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Speaker 1: Now I'm having to go in so I'm just looking

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Speaker 1: for a place to crash at night. For the most part,

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Speaker 1: I think that's probably true.

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Speaker 2: Yeah, for a minute, there was that push towards especially

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Speaker 2: I remember my little sister living in a studio apartment.

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Speaker 1: That's when they upgraded, right, Yeah, and they were like,

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Speaker 1: we can't both work from home here exactly. It makes sense.

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Speaker 1: So while we're speaking of homes, the average American homeowner

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Speaker 1: is also rich in home equity. Collectively speaking, we've got

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Speaker 1: more than thirty five trillion dollars in our homes thanks

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Speaker 1: to the appreciation that they've experienced over time. And so

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Speaker 1: if you, let's say, bought a house in the last

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Speaker 1: ten to fifteen years, you have inevitably increase your net

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Speaker 1: worth because of that home, just because of the trend. Yeah,

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Speaker 1: it's it is up something like eighty percent since twenty twenty,

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Speaker 1: so even the more recent years it has been even

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Speaker 1: more significant. But it is really only wealth on paper,

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Speaker 1: and it can add to this thing called the wealth effect.

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Speaker 1: And let me explain that basically, you feel richer, it

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Speaker 1: can lead to increased spending. Because of that, you spend

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Speaker 1: a little bit more freely. But you know, the tough

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Speaker 1: thing is home equity. It isn't all that liquid. And

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Speaker 1: because we are typically beneficiaries of home appreciation right like,

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Speaker 1: we are not necessarily working for it. I think it

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Speaker 1: could mean for some folks out there that it's easier

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Speaker 1: to borrow and spend, kind of like an easy come,

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Speaker 1: easy go sort of thing. I think. So I want

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Speaker 1: to put this on folks radar because I want them

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Speaker 1: to be careful of this. You want to be careful

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Speaker 1: of this temptation. I think more than ever, it's important

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Speaker 1: to I think the rule of thumb here is to

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Speaker 1: know thyself, because I do think that there are some

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Speaker 1: folks like I don't think about the homes that we

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Speaker 1: own like investment properties at all when I calculate my

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Speaker 1: my net worth, when I calculate some far off payout

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Speaker 1: amount once the homes are paid for that kind of thing.

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Speaker 1: But I think there might be some folks where, you know,

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Speaker 1: if they still got the Zillow app on their phone

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Speaker 1: and they're like, oh, it's increasing again, that's elevating over

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Speaker 1: every price of use. Yeah. It kind of makes me

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Speaker 1: think of like credit lines. Like if you are the

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Speaker 1: kind of person who can handle a thirty thousand dollars

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Speaker 1: available credit on your credit card and you hardly spend

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Speaker 1: on that card at all, You don't go anywhere near

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Speaker 1: that thirty thousand dollars, maybe put like three hundred bucks

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Speaker 1: on it here and there, then I think you are

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Speaker 1: probably the kind of person who isn't necessarily tempted by

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Speaker 1: that increased home equity. But if you are the kind

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Speaker 1: of person who's just like, woh, they just upgrade. I

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Speaker 1: got seven more thousand dollars available to me. I just

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Speaker 1: went from twenty one thousand to twenty eight like time

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Speaker 1: to keeping track of that, time to go out and spend.

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Speaker 1: If you, yeah, exactly, if that's if you're that kind

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Speaker 1: of person, I would also say be careful when it

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Speaker 1: comes to home equities. So I think there's two things here.

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Speaker 2: I think one, don't treat your home like a piggybank,

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Speaker 2: because if if you do, there are financial repercussions down

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Speaker 2: the line. And then also kind of going on that

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Speaker 2: wealth effect thing just because it exists. Don't let that

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Speaker 2: give you the permission right to spend money in a

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Speaker 2: more ridiculous way just because you're like, why, yeah, I'm

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Speaker 2: not bloaded, man, I got like three hundred and fifty

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Speaker 2: grand in home equity, so I don't need to be

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Speaker 2: as worried. I can be a little more profligate with

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Speaker 2: my spending. I don't think that's the case. Or let's

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Speaker 2: talk about target date funds, Matt. They just crossed an

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Speaker 2: important threshold. There are now more than four trillion dollars

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Speaker 2: in assets that are held inside specifically of target date funds,

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Speaker 2: and morning Star wrote an article about this and they

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Speaker 2: basically detailed the rise of target date funds in the

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Speaker 2: last couple of decades. They're also holding up better right now,

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Speaker 2: right you have in the recent market volatility there because

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Speaker 2: of their more balanced approach, they're not going to see

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Speaker 2: as dramatic of a decline typically as somebody who is

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Speaker 2: invested more like you and I, who's one hundred percent

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Speaker 2: invested in stocks. On top of this, z fees on

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Speaker 2: these funds continue to decline. Morning Stars said that in

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Speaker 2: twenty fifteen they were zero point five to five percent

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Speaker 2: on average. Now they're point twenty nine percent on average.

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Speaker 2: So I like that target date funds are experiencing the

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Speaker 2: same decline in fees in expense ratios that many other

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Speaker 2: funds have seen as competition has increased, and the big

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Speaker 2: low cost investment houses like Vanguard, Fidelity, and Schwab.

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Speaker 1: Have really pushed the envelope on that.

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Speaker 2: And so Vanguard and Fidelity in particular have some of

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Speaker 2: the best low cost target date fund options. Their expense

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Speaker 2: ratio is a heck of a lot less than even

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Speaker 2: the average. We're talking about zero point oh eight percent,

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Speaker 2: which is pretty darn good. And so for investors who

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Speaker 2: like simplicity, who like low costs, I do think it's

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Speaker 2: it is important for us to consistently mention that target

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Speaker 2: date funds can still be a great option, particularly inside

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Speaker 2: of your retirement accounts, because if you invest in a

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Speaker 2: target date fund, it's going to automatically shift the allocation

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Speaker 2: as you age. It's easy, PZ. It's a set it

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Speaker 2: and forget it sort of. And I think target date

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Speaker 2: funds while they're not my one hundred percent favorite fully

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Speaker 2: optimized way to invest for really young people. I think

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Speaker 2: they're still like, don't let perfect be the enemy a

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Speaker 2: good They can still be a good option.

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Speaker 1: You're still solid. Yeah, let's talk about another investing trend.

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Speaker 1: Gold is the talk of the town these days, in

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Speaker 1: particularly because of the less predictable economic conditions that we've

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Speaker 1: been experiencing. Actually, gold, it has seen better returns than

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Speaker 1: the S and P five hundred over the past twenty

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Speaker 1: years to think about, and it is. Yeah, it's a

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Speaker 1: bit more of like cherry picking data, I think, but

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Speaker 1: still twenty here's a long term recent Yeah, I mean,

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Speaker 1: but if you zoom out to thirty years, the SMP

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Speaker 1: blows it away. Yeah, you zoomed out to thirty forty fifty. Uh,

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Speaker 1: you zoom out one hundred years, dude, Like, it's not

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Speaker 1: even close. Over the last six months, last six months,

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Speaker 1: last twenty years, surprisingly it has done better. But the

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Speaker 1: question then comes up, should we all jump on this

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Speaker 1: gold investing bandwagon on this trend? Most experts out there

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Speaker 1: would tell you that gold isn't a necessary part of

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Speaker 1: your investment portfolio, But if you want to hold a

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Speaker 1: little bit of gold. I think that can makes a

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Speaker 1: whole lot of sense. We always talk about holding five

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Speaker 1: percent or less of your overall portfolio in different things

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Speaker 1: that we think are okay, yeah, like precious metals, bitcoin,

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Speaker 1: like you just gold could be one of those you

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Speaker 1: just love this one company and you're like, you know what,

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Speaker 1: I'm going to go buy me some Warner Brothers like

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Speaker 1: I did after we talked about Harry Potter being released,

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Speaker 1: or did you Yeah, I mean, just like one share

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Speaker 1: part of your play portfolio. It's just for kicks, just

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Speaker 1: to have time stamps. Oh this is when that happened.

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Speaker 1: And I don't know. It's just a little something that's

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Speaker 1: fun to do. But it's worth mentioning because you're going

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Speaker 1: to see more headlines about gold. You're going to see

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Speaker 1: more advertisements specifically from gold buying companies, especially with the

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Speaker 1: runoff and values that we've seen. They're loaded. Then they're

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Speaker 1: gonna be like, y'all need to get in on this,

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Speaker 1: and they've got so much money come through our proprietary

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Speaker 1: system to buy gold because every investor needs some gold

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Speaker 1: in their lives, and they're gonna do the hard pitch.

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Speaker 1: We would actually prefer if you want to old some gold.

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Speaker 1: We would prefer that you stick with some low cost

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Speaker 1: ETFs that invest in gold specifically, like GLDM. That is

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Speaker 1: a great option with a very small fee.

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Speaker 2: Is Costco still selling the gold bars?

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Speaker 1: Depens on the season? Okay? Are they still selling giant

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Speaker 1: wheels of cheese of Parmisan? Yeah?

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Speaker 2: I guess Palmagano. Yeah, I don't know what the regiano

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Speaker 2: the gold buying season is, but yeah, I wonder. Typically

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Speaker 2: when they when they put them out there, they sell

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Speaker 2: it quickly. But even that, like they're.

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Speaker 1: Still selling two thousand dollars Yu steaks, I mean probably.

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Speaker 1: Sometimes they put these things out there and I'm just like,

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Speaker 1: who the heck somebody is is buying this?

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Speaker 2: Obviously somebody is, But I think that you're right, Like

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Speaker 2: buying it inside of a low cost ETF makes more

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Speaker 2: sense even than buying like physical gold at a place

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Speaker 2: like Costco, which is going to give you a better

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Speaker 2: deal than you're going to get almost anywhere else for

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Speaker 2: buying gold. And some people like I don't want to

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Speaker 2: stick it under their mattress or something like that, that's.

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Speaker 1: Not a deal.

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Speaker 2: Like, if you want some gold exposure, low cost ETFs

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Speaker 2: are typically the best way to go. Well, we're talking

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Speaker 2: about investing, Matt. Let's talk about the main headline this week,

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Speaker 2: the one that hits us right in the sweet spot

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Speaker 2: in our hearts. Warren Buffett stepping down as the CEO

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Speaker 2: of Berkshire Hathaway, did you shed a tear when.

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Speaker 1: You heard the news? I not really. I'm like, yeah,

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Speaker 1: he's like so old.

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Speaker 2: Good for him at the age of ninety four for

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Speaker 2: finally like saying I mean again, it doesn't at the

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Speaker 2: end of the year, in seven months or whatever.

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Speaker 1: And maybe because I know you and I we've had

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Speaker 1: more conversations too, I mean, with Charlie Munger having died,

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Speaker 1: we talked about Warren Buffett earlier this year. We actually

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Speaker 1: had David clark On talking about the new towel of

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Speaker 1: Warren Buffett. Yeah. I don't know, it makes sense. It

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Speaker 1: totally makes sense. He's old, he's a sharp guy.

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Speaker 2: I don't begrudge him this, and I actually encourage him

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Speaker 2: in this endeavor to like I bag work and live

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Speaker 2: out the rest of your years with I don't know,

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Speaker 2: hopefully a little less. But apparently he's going to remain

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Speaker 2: the chairman of Berkshire, so he's not like closing out

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Speaker 2: completely altogether. But he really is the goat and and been.

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Speaker 2: So many of the moves he's made over the decades

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Speaker 2: that you could highlight have been impressive. And Berkshire's returns

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Speaker 2: you're talking about the gold versus the S and P.

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Speaker 2: Will Berkshire his company, those returns have far outpaced in

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Speaker 2: the S and P during his investing tenure, or something

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Speaker 2: like basically twenty percent returns versus ten plus percent returns

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Speaker 2: for the S and P over those many decades. But

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Speaker 2: I think it's important to highlight the fact that he

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Speaker 2: is an anomaly and most of us shouldn't aspire to

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Speaker 2: be like Warren Buffett. I mean, in some ways we should, right,

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Speaker 2: I appreciate his humility and his intelligence, but his frugal nature. Yeah,

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Speaker 2: But in other ways, it's like, don't try to do that.

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Speaker 2: Because I saw the stat Matt Jason's wagen the Wall

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Speaker 2: Street Journal estimates that Warren Buffett has read more than

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Speaker 2: one hundred thousand financial statements of companies, and he said,

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Speaker 2: that's actually probably pretty conservative. I bet Warren thread quite

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Speaker 2: a bit more than that. And my question to how

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Speaker 2: the money listeners is are you willing to do that?

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Speaker 2: Are you, Nope, Are you going to spend your days,

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Speaker 2: your evenings instead of hanging out with your partner or

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Speaker 2: doing a hobby reading financial statements of companies. Some people

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Speaker 2: are gonna say, yeah, I am, because that's really fun

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Speaker 2: for me. Then maybe you are in the Warren Buffett

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Speaker 2: ilk who can and should invest in single stocks. But

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Speaker 2: for most of us normies who don't do that, then

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Speaker 2: I think it's just a good le Hey. Index funds

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Speaker 2: make the most sense, and that's why, Yeah, we shall

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Speaker 2: also do what Warren Buffett says, not what he does.

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Speaker 2: What he says to every day investors is like, yeah,

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Speaker 2: investing most of your assets into the S and P

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Speaker 2: five hundred is going to build you wealth over time.

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Speaker 2: You don't even need to do it the way I

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Speaker 2: did it. I love that he did it the way

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Speaker 2: he did it. I think he's passed on a lot

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Speaker 2: of great lessons to individual investors over the years, patients

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Speaker 2: long term thinking, the beauty of simplicity. He's just been

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Speaker 2: such a remarkable fixture in the investing landscape for so long.

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Speaker 2: But I think this is a good reminder to learn

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Speaker 2: from Warren Buffett and not necessarily try to mimic him.

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Speaker 1: Okay, So I don't know if this is uncouth to

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Speaker 1: bring this up, but maybe with Warren getting oh yeah,

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Speaker 1: ninety four years old, maybe this is a good reminder

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Speaker 1: to review your beneficiaries if you haven't on your different accounts.

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Speaker 1: I'm sure Warren has this so you know, buttoned up.

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Speaker 1: I'm sure he does. But I saw a recent article

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Speaker 1: talking about this. We haven't mentioned this on the show

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Speaker 1: in a while, but if there have been any major

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Speaker 1: life changes, make sure that you make those changes within

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Speaker 1: the back end of your retirement accounts. Contrary to popular belief,

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Speaker 1: your beneficiary it actually supersedes what is in your will,

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Speaker 1: so like you don't want the money that you've been

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Speaker 1: working hard to grow to be left to someone that

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Speaker 1: maybe you no longer intend for that money to go

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Speaker 1: to you. In that article they actually mentioned Heath Ledger

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Speaker 1: and how with his unexpected death, he hadn't named his

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Speaker 1: daughter as the beneficiary. Instead he had left all the

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Speaker 1: money to like his sisters and his parents. That's like

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Speaker 1: a you know, celebrity obviously, so it gets slightly more attention,

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Speaker 1: but that's just a great example. In the end, they

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Speaker 1: gave her all the money, so they took care of her,

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Speaker 1: But that's still the kind of situation that you ideally

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Speaker 1: want to completely avoid.

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Speaker 2: And let's be honest, it'll make you all of forty

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Speaker 2: five seconds to log into the back end of your

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Speaker 2: account and do that. And if you don't have the

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Speaker 2: right beneficiary listed and you were to pass away, like

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Speaker 2: that's a man, think about the problem that you're leaving

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Speaker 2: your loved ones. Sure, a random other aside on investing,

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Speaker 2: Matt real quick, I saw this stat and it shocked me.

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Speaker 2: You know, the trump coin that got released, it was

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Speaker 2: widely publics.

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Speaker 1: Which one or are there multiple? I feel like, oh,

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Speaker 1: that's true, but I feel like there have been multiple

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Speaker 1: stories about grifting taking place front within the White House.

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Speaker 2: Well, this is something we've talked about on the show before.

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Speaker 2: Bitcoin and crypto are kind of completely different things in

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Speaker 2: a whole lot of ways, and there's a lot more

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Speaker 2: room for to get swindled, I guess in the crypto space,

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Speaker 2: and there is if you just invest some in bitcoin

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Speaker 2: with regularity. Turns out only fifty eight people have made

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Speaker 2: money owning trump coin. They've made almost a billion dollars

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Speaker 2: in total. And wow, over seven hundred and fifty thousand

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Speaker 2: people invested in trump coin, and almost all those people

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Speaker 2: lost money. So fifty eight out of seven hundred and

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Speaker 2: fifty thousand people made money, the rest of them lost.

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Speaker 1: It sounds like a scam, yep.

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Speaker 2: A lot of pump and dump style happening in the

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Speaker 2: crypto space. Still, beware, I stay behind my term, or

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Speaker 2: my use of the word grift, Yeah, because like that

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Speaker 2: is what like talk about wealth transfer. Man, this is

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Speaker 2: something that we hate seeing. This is regardless of whether

431
00:20:21,600 --> 00:20:24,680
Speaker 2: or not you support him, the different policies that he's

432
00:20:24,720 --> 00:20:27,400
Speaker 2: going for. I hate to see this, Yeah, and it's

433
00:20:27,400 --> 00:20:30,760
Speaker 2: just another reminder to hey, yeah, invest some in bitcoin

434
00:20:30,840 --> 00:20:34,440
Speaker 2: if you're so inclined, but don't mess with the rest

435
00:20:34,440 --> 00:20:36,280
Speaker 2: of the crypto space. All Right, We've got more to

436
00:20:36,280 --> 00:20:40,080
Speaker 2: get to, including we're talking about social security problems and

437
00:20:40,280 --> 00:20:42,520
Speaker 2: how you can react. We'll talk about that and more

438
00:20:42,640 --> 00:20:43,159
Speaker 2: right after this.

439
00:20:51,080 --> 00:20:53,800
Speaker 1: All right, but we've got more Friday flight to get

440
00:20:53,840 --> 00:20:56,280
Speaker 1: to and of course now it is time for the

441
00:20:56,320 --> 00:20:59,440
Speaker 1: ludicrous headline of the week, and we're going to take

442
00:20:59,480 --> 00:21:03,280
Speaker 1: this segment and talk about credit. There's an article from

443
00:21:03,280 --> 00:21:07,240
Speaker 1: CNBC that I am unhappy with because the title of

444
00:21:07,280 --> 00:21:10,160
Speaker 1: the article was I don't like seeing you unhappy how

445
00:21:10,160 --> 00:21:12,400
Speaker 1: to raise your credit score one hundred and sixty points

446
00:21:12,440 --> 00:21:16,440
Speaker 1: in thirty days. Well okay, so specifically, well, it wasn't

447
00:21:16,480 --> 00:21:19,400
Speaker 1: the headline, it was what was contained within the story.

448
00:21:19,160 --> 00:21:21,840
Speaker 2: Because yeah, the headline it sounds promising, right, Yeah.

449
00:21:21,920 --> 00:21:24,040
Speaker 1: Yeah, we talk about improving your credit score all the time.

450
00:21:24,040 --> 00:21:26,879
Speaker 1: This is something that we it's a regular feature here

451
00:21:26,920 --> 00:21:28,800
Speaker 1: on the show. You don't want to ignore your credit score,

452
00:21:29,280 --> 00:21:31,919
Speaker 1: and especially raising your credit score this much in just

453
00:21:32,000 --> 00:21:35,280
Speaker 1: a month. I am all four, But sadly this article

454
00:21:35,320 --> 00:21:37,440
Speaker 1: had some really bad advice that was mixed in with

455
00:21:37,520 --> 00:21:39,960
Speaker 1: the good stuff. So first of all the good stuff

456
00:21:39,960 --> 00:21:42,479
Speaker 1: they say to pay attention to your credit score, Yeah,

457
00:21:42,680 --> 00:21:43,240
Speaker 1: totally true.

458
00:21:43,359 --> 00:21:45,920
Speaker 2: When the reports in particular two right to say, hey,

459
00:21:46,000 --> 00:21:48,159
Speaker 2: if there's an error on there, you want to find it.

460
00:21:48,240 --> 00:21:52,560
Speaker 1: Exactly, there are mistakes on a huge percentage of those reports.

461
00:21:52,880 --> 00:21:56,720
Speaker 1: Consider reports says that half of folks who actually go looking,

462
00:21:57,000 --> 00:21:59,280
Speaker 1: they're going to find an error. So that's something that

463
00:21:59,280 --> 00:22:00,000
Speaker 1: you can be on the look at.

464
00:22:00,080 --> 00:22:02,960
Speaker 2: Basically, the credit bureaus not so great at the record keeping,

465
00:22:03,000 --> 00:22:04,480
Speaker 2: which is their primary.

466
00:22:05,560 --> 00:22:08,320
Speaker 1: Job on it. But in addition, so that's like a

467
00:22:08,320 --> 00:22:10,439
Speaker 1: small example of something that was good in addition to

468
00:22:10,480 --> 00:22:15,280
Speaker 1: that the article said to consider hiring a credit repair company,

469
00:22:15,320 --> 00:22:18,600
Speaker 1: and also interspersed and mixed throughout this entire article. I

470
00:22:18,640 --> 00:22:20,800
Speaker 1: think it was sort of like a pay to play.

471
00:22:21,000 --> 00:22:23,200
Speaker 1: It had to be sort of journalism. But you saw

472
00:22:23,640 --> 00:22:25,359
Speaker 1: I didn't even check with you, but I assumed you

473
00:22:25,400 --> 00:22:28,919
Speaker 1: also saw the I'm not going to call them out specifically,

474
00:22:28,920 --> 00:22:32,160
Speaker 1: but it was a lending I'm sorry, a credit repair company,

475
00:22:32,240 --> 00:22:34,400
Speaker 1: and they had like some charts to where it looked

476
00:22:34,400 --> 00:22:35,600
Speaker 1: like it was a part of the story. But then

477
00:22:35,600 --> 00:22:38,040
Speaker 1: there's also ads from the same company. There's like the

478
00:22:38,080 --> 00:22:40,760
Speaker 1: small grade out thing that says ad in the bottom

479
00:22:40,800 --> 00:22:43,480
Speaker 1: vapor sketchy. Don't like it because this is something that

480
00:22:43,560 --> 00:22:48,840
Speaker 1: you can completely deiy. You don't need another expensive monthly subscription,

481
00:22:49,200 --> 00:22:52,080
Speaker 1: which is the model that most of these companies operate under.

482
00:22:52,080 --> 00:22:53,680
Speaker 2: It like one hundred and fifty bucks a month or

483
00:22:53,720 --> 00:22:54,879
Speaker 2: something like that, right.

484
00:22:54,680 --> 00:22:57,560
Speaker 1: And like you can tell oftentimes when something's a scam,

485
00:22:57,600 --> 00:23:01,280
Speaker 1: when there's something called gosh, like a startup fee or

486
00:23:01,280 --> 00:23:03,639
Speaker 1: like an onboarding those are the worst. Yeah, like a

487
00:23:03,680 --> 00:23:05,960
Speaker 1: setup charge and like what needs to be set up,

488
00:23:06,040 --> 00:23:09,119
Speaker 1: like you taking me as a customer. I don't like it,

489
00:23:09,160 --> 00:23:11,359
Speaker 1: and we've actually got an article up on the website

490
00:23:11,800 --> 00:23:14,840
Speaker 1: with some tips to rebuild your credit score, and it

491
00:23:14,880 --> 00:23:17,200
Speaker 1: is a much better article than the one that CNBC

492
00:23:17,359 --> 00:23:17,760
Speaker 1: was running.

493
00:23:17,800 --> 00:23:19,720
Speaker 2: If you've got like a question because you feel like

494
00:23:19,720 --> 00:23:21,239
Speaker 2: your credit score is not where it needs to be,

495
00:23:21,400 --> 00:23:22,919
Speaker 2: send us a question. We'd be happy to take it

496
00:23:22,920 --> 00:23:26,960
Speaker 2: on the podcast. But just do not do not sign

497
00:23:27,040 --> 00:23:29,600
Speaker 2: up for one of these credit repair companies because they'll

498
00:23:29,600 --> 00:23:32,359
Speaker 2: take more than they give and most of the things

499
00:23:32,400 --> 00:23:35,640
Speaker 2: that they're offering to do, yeah, you can do yourself.

500
00:23:36,280 --> 00:23:38,720
Speaker 2: More bad news on the credit front, Matt medical debt.

501
00:23:38,760 --> 00:23:42,720
Speaker 2: It might be staying on credit reports after all. Because

502
00:23:42,720 --> 00:23:46,400
Speaker 2: of these policy changes were essentially made by executive order,

503
00:23:46,440 --> 00:23:49,480
Speaker 2: and it seems like that's the only way policy changes

504
00:23:49,480 --> 00:23:53,000
Speaker 2: get made these days, which just puts more power in

505
00:23:53,040 --> 00:23:55,480
Speaker 2: the hands of the president, no matter whether they have

506
00:23:55,520 --> 00:23:57,920
Speaker 2: an R or a D by their name. But many

507
00:23:57,920 --> 00:24:01,440
Speaker 2: of the changes that were enacted by the previous administration

508
00:24:01,480 --> 00:24:03,879
Speaker 2: are now subject to change, and the same will be

509
00:24:03,920 --> 00:24:07,520
Speaker 2: true of whoever is in the Oval office next. And

510
00:24:07,560 --> 00:24:11,199
Speaker 2: as the Consumer Financial Protection Bureau has been downsized and

511
00:24:11,240 --> 00:24:14,199
Speaker 2: its futures in jeopardy, a judge has been asked to

512
00:24:14,320 --> 00:24:17,680
Speaker 2: vacate the rule that would have excluded medical debt from

513
00:24:17,720 --> 00:24:21,880
Speaker 2: appearing on credit reports moving forward, And so this isn't final,

514
00:24:22,280 --> 00:24:25,879
Speaker 2: but it does seem that the medical debt exclusion is

515
00:24:26,000 --> 00:24:29,720
Speaker 2: unlikely to stick around. And although I think the credit

516
00:24:29,760 --> 00:24:33,280
Speaker 2: bureaus have still basically on their own, of their own volition,

517
00:24:33,440 --> 00:24:36,160
Speaker 2: said well, you know, medical debt under five hundred bucks,

518
00:24:36,160 --> 00:24:36,880
Speaker 2: we're not going to put.

519
00:24:36,800 --> 00:24:37,480
Speaker 1: On there anyway.

520
00:24:38,000 --> 00:24:41,600
Speaker 2: But with this and what's happening with student loan collections,

521
00:24:41,880 --> 00:24:44,119
Speaker 2: it's even more crucial to pay attention to your credit

522
00:24:44,119 --> 00:24:45,000
Speaker 2: report and credit score.

523
00:24:45,040 --> 00:24:45,520
Speaker 1: These days.

524
00:24:45,640 --> 00:24:48,200
Speaker 2: We're likely to see average scores I would say, dropping

525
00:24:48,680 --> 00:24:51,240
Speaker 2: in the coming years and in the future. I think

526
00:24:51,240 --> 00:24:53,199
Speaker 2: it would make sense for both parties to get the

527
00:24:53,280 --> 00:24:56,280
Speaker 2: legislative branch involved in writing and passing bills for the

528
00:24:56,359 --> 00:24:58,680
Speaker 2: changes that they want to see endure, because otherwise it's

529
00:24:58,680 --> 00:25:00,720
Speaker 2: just kind of kind of be this back and forth,

530
00:25:00,760 --> 00:25:02,479
Speaker 2: this whiplash of like, no, we're going to do this,

531
00:25:02,760 --> 00:25:05,320
Speaker 2: but if it's issued by executive order, the chances of

532
00:25:05,320 --> 00:25:09,320
Speaker 2: that thing sticking around over the long term are just minimal.

533
00:25:09,480 --> 00:25:13,600
Speaker 1: You're advocating for some sticky legislation, Yes, I totally agree. Man.

534
00:25:13,800 --> 00:25:17,240
Speaker 1: So another article that was also ludicrous. So a little

535
00:25:17,240 --> 00:25:20,040
Speaker 1: two for one today, but this one was from USA Today.

536
00:25:20,320 --> 00:25:24,360
Speaker 1: Americans saved money in FinTechs. When money went missing, FDIC

537
00:25:24,680 --> 00:25:28,080
Speaker 1: was nowhere to be found. This was okay. So this

538
00:25:28,119 --> 00:25:30,440
Speaker 1: is like the opposite of the CNBC article. This is

539
00:25:30,480 --> 00:25:32,760
Speaker 1: a you know, some good reporting that was taking place.

540
00:25:33,040 --> 00:25:35,879
Speaker 1: And this article highlighted the way that fintech banks grew

541
00:25:35,960 --> 00:25:40,160
Speaker 1: into these juggernauts for savers. They're promising higher rates, they're

542
00:25:40,160 --> 00:25:45,000
Speaker 1: promising better perks, and the rise of these cool online banks.

543
00:25:45,200 --> 00:25:48,840
Speaker 1: That's really a story of actual fintech growth. But as

544
00:25:48,880 --> 00:25:51,400
Speaker 1: we have mentioned before, many of these fintech banks are

545
00:25:51,440 --> 00:25:55,240
Speaker 1: on shaky ground. And what happens inevitably when customers of

546
00:25:55,280 --> 00:25:58,280
Speaker 1: some of these neo banks lost or savings, the FDIC

547
00:25:58,480 --> 00:25:59,480
Speaker 1: they had nothing to do about it.

548
00:25:59,520 --> 00:26:01,639
Speaker 2: They're like, what huh are you? Are you reaching out

549
00:26:01,680 --> 00:26:03,680
Speaker 2: to us because like that in our jurisdiction.

550
00:26:03,800 --> 00:26:04,000
Speaker 1: Yeah.

551
00:26:04,280 --> 00:26:05,879
Speaker 2: And so the reason for this is basically it's like

552
00:26:05,920 --> 00:26:08,200
Speaker 2: that Spider Man meme where every one's pointing and the

553
00:26:08,320 --> 00:26:09,119
Speaker 2: FDIC is pointing.

554
00:26:09,160 --> 00:26:11,919
Speaker 1: That is exactly these our fault. So the company, these

555
00:26:11,960 --> 00:26:14,879
Speaker 1: new startups, they aren't actual banks. Instead, what happens they

556
00:26:14,920 --> 00:26:18,840
Speaker 1: work with FDIC insured banks through an intermediary. But still

557
00:26:18,840 --> 00:26:23,719
Speaker 1: when these banks experienced again, when these tech companies experienced issues,

558
00:26:23,760 --> 00:26:26,760
Speaker 1: the FDIC didn't do anything in order to help These customers.

559
00:26:26,880 --> 00:26:28,560
Speaker 1: Call it I'm glad you call them tech companies because

560
00:26:28,560 --> 00:26:30,880
Speaker 1: they're not They're not banks. They look and feel. That's

561
00:26:30,880 --> 00:26:33,160
Speaker 1: the problem. Though on the website market themselves like a bank,

562
00:26:33,200 --> 00:26:35,439
Speaker 1: they say that they are not banks, and so some

563
00:26:35,520 --> 00:26:37,600
Speaker 1: of them. But if you just at first glance as

564
00:26:37,600 --> 00:26:40,840
Speaker 1: a consumer, you it would be understandable that you would

565
00:26:40,840 --> 00:26:42,960
Speaker 1: think they were exactly But this is why this has

566
00:26:42,960 --> 00:26:44,760
Speaker 1: been a drum that we've continued to beat. We want

567
00:26:44,760 --> 00:26:46,320
Speaker 1: folks to stay away from this. We want you to

568
00:26:46,800 --> 00:26:49,879
Speaker 1: actually go with a real online bank, an actual company

569
00:26:49,920 --> 00:26:52,360
Speaker 1: that's been around for a minute, that has their very

570
00:26:52,359 --> 00:26:53,760
Speaker 1: own FDIC insurance.

571
00:26:53,920 --> 00:26:58,320
Speaker 2: Yeah, it's we mentioned them consistently. We say Ally, C, I, T,

572
00:26:58,720 --> 00:27:02,880
Speaker 2: Discover Capital one. Those are all online banks, but they're

573
00:27:02,880 --> 00:27:06,199
Speaker 2: fully fledged banks. They're not super cutesy and stuff like

574
00:27:06,200 --> 00:27:09,480
Speaker 2: that with the fintech names and the extra oh, get

575
00:27:09,480 --> 00:27:12,199
Speaker 2: your paycheck two days early. They don't really have that

576
00:27:12,320 --> 00:27:15,760
Speaker 2: kind of fancy stuff going on. But it's fine, Like,

577
00:27:15,800 --> 00:27:17,800
Speaker 2: we don't think you need that stuff. They still pay

578
00:27:17,800 --> 00:27:21,320
Speaker 2: competitive rates, they keep their fees low. We love those

579
00:27:21,440 --> 00:27:24,879
Speaker 2: online banks. They're better than the traditional brick and mortar

580
00:27:24,920 --> 00:27:27,680
Speaker 2: giant banks, and you can kind of get the best

581
00:27:27,680 --> 00:27:29,840
Speaker 2: of both worlds with them, and you're not at risk

582
00:27:29,920 --> 00:27:31,680
Speaker 2: of losing your money like you are with some of

583
00:27:31,720 --> 00:27:33,960
Speaker 2: these fintech banks. I'm still curious to see how this

584
00:27:34,000 --> 00:27:36,400
Speaker 2: shakes out and whether some of those consumers who had

585
00:27:36,400 --> 00:27:38,919
Speaker 2: money with the fintech banks are going to get the

586
00:27:38,960 --> 00:27:40,840
Speaker 2: fintech fox banks. I guess what we should you call them,

587
00:27:40,960 --> 00:27:43,320
Speaker 2: are going to get their money back. That remains to

588
00:27:43,359 --> 00:27:43,680
Speaker 2: be seen.

589
00:27:44,000 --> 00:27:44,200
Speaker 1: Matt.

590
00:27:44,280 --> 00:27:48,480
Speaker 2: Let's talk about Social Security for a second. The spotlight

591
00:27:48,640 --> 00:27:51,480
Speaker 2: is on Social Security right now. Problems seem to be

592
00:27:51,480 --> 00:27:54,840
Speaker 2: getting worse at the Social Security Administration. We've got staff cuts,

593
00:27:55,400 --> 00:27:59,480
Speaker 2: changing requirements to claim benefits, have some folks on edge

594
00:28:00,119 --> 00:28:03,199
Speaker 2: on top of that, which we've detailed this before on

595
00:28:03,240 --> 00:28:05,000
Speaker 2: the show. We did dedicated a whole episode to it

596
00:28:05,040 --> 00:28:07,720
Speaker 2: a couple of years back. The Social Security Trust Fund

597
00:28:07,800 --> 00:28:10,120
Speaker 2: is set to run out sooner than expected in that year.

598
00:28:10,160 --> 00:28:12,280
Speaker 2: It feels like that year keeps of when the trust

599
00:28:12,280 --> 00:28:14,280
Speaker 2: funds gonna run out keeps getting pushed up and up,

600
00:28:14,720 --> 00:28:17,240
Speaker 2: so in less than a decade. That's when the trust

601
00:28:17,280 --> 00:28:20,600
Speaker 2: fund is set to expire, which has retirees worried about

602
00:28:20,600 --> 00:28:24,320
Speaker 2: receiving the benefit they're entitled to. They might not get

603
00:28:24,640 --> 00:28:27,000
Speaker 2: what's coming to them, what they've paid into for their

604
00:28:27,040 --> 00:28:30,080
Speaker 2: whole lives. So what happens if or when we reach

605
00:28:30,119 --> 00:28:33,159
Speaker 2: that point, well, benefits get automatically cut by essentially like

606
00:28:33,200 --> 00:28:36,600
Speaker 2: a quarter. So retirees and soon to be retirees they're

607
00:28:36,640 --> 00:28:40,120
Speaker 2: getting fearful about the solvency of Social Security. It's leading

608
00:28:40,160 --> 00:28:42,240
Speaker 2: to early claims and so instead of wait until sixty

609
00:28:42,280 --> 00:28:44,840
Speaker 2: seven or even later, they're starting to get that monthly

610
00:28:44,920 --> 00:28:48,560
Speaker 2: check at sixty five or even earlier. And this is

611
00:28:48,600 --> 00:28:51,400
Speaker 2: a personal decision. There's a lot at play in when

612
00:28:51,440 --> 00:28:54,240
Speaker 2: you claim Social Security, and the reality is that there's

613
00:28:54,280 --> 00:28:57,040
Speaker 2: trade offs right to claiming early and to waiting, especially

614
00:28:57,080 --> 00:28:59,440
Speaker 2: if you're not in great health, like waiting till seventy

615
00:28:59,520 --> 00:29:02,560
Speaker 2: if you're not doing so hot, well, I get why

616
00:29:02,600 --> 00:29:05,000
Speaker 2: you might claim early, but a good chunk of folks

617
00:29:05,520 --> 00:29:08,280
Speaker 2: would be when you run the numbers, better off waiting longer.

618
00:29:08,640 --> 00:29:11,400
Speaker 2: Even with this kind of increased uncertainty around Social Security.

619
00:29:11,400 --> 00:29:13,960
Speaker 2: And I also just think people in their sixties should

620
00:29:14,000 --> 00:29:16,480
Speaker 2: be less worried about the future of social Security. It's

621
00:29:16,560 --> 00:29:19,440
Speaker 2: people in their twenties and thirties and forties who should

622
00:29:19,480 --> 00:29:22,240
Speaker 2: be like, hmm, player impact on them planning a little more,

623
00:29:22,240 --> 00:29:24,960
Speaker 2: investing more for their own future retirement, and banking less

624
00:29:25,000 --> 00:29:27,720
Speaker 2: on the reality of Social Security being a major major

625
00:29:27,760 --> 00:29:29,800
Speaker 2: part of their retirement income plans.

626
00:29:29,880 --> 00:29:32,520
Speaker 1: Yeah, let's talk about the specific numbers. Because the benefit

627
00:29:32,640 --> 00:29:36,480
Speaker 1: is roughly seventy five percent higher if you wait, If

628
00:29:36,480 --> 00:29:39,480
Speaker 1: you claim at age seventy as opposed to age sixty two,

629
00:29:40,000 --> 00:29:43,600
Speaker 1: those early claims are going to reduce benefits for decades

630
00:29:43,640 --> 00:29:46,080
Speaker 1: to come, and for if you're healthy, right, if you're

631
00:29:46,080 --> 00:29:49,520
Speaker 1: a healthy retiree, the overall amount received could be reduced

632
00:29:49,560 --> 00:29:53,360
Speaker 1: by up to six figures over your lifetime, essentially.

633
00:29:53,240 --> 00:29:55,280
Speaker 2: One hundred and twenty thousand dollars less in your pocket

634
00:29:55,280 --> 00:29:57,160
Speaker 2: because it's significant claim too early, right.

635
00:29:57,120 --> 00:29:59,400
Speaker 1: Yeah, And obviously none of us out there know how

636
00:29:59,440 --> 00:30:01,480
Speaker 1: long we're going to But if you are in good

637
00:30:01,480 --> 00:30:03,920
Speaker 1: health at retirement age, if you can afford to wait,

638
00:30:04,200 --> 00:30:07,040
Speaker 1: it's still likely the best option. If you want a

639
00:30:07,040 --> 00:30:11,320
Speaker 1: little bit of additional reassurance, you can consult this fairly

640
00:30:11,320 --> 00:30:14,600
Speaker 1: inexpensive software that's out there. There's this one called maximize

641
00:30:14,600 --> 00:30:16,960
Speaker 1: my Social Security. If this is something you're trying to

642
00:30:17,000 --> 00:30:19,960
Speaker 1: really crunch the numbers on. And again, like you mentioned Jil,

643
00:30:20,000 --> 00:30:23,200
Speaker 1: for younger listeners, it is going to impact you more

644
00:30:23,200 --> 00:30:25,680
Speaker 1: than if you're like sixty years old. But even still,

645
00:30:25,680 --> 00:30:28,640
Speaker 1: I think it's going to be around for all of us.

646
00:30:28,800 --> 00:30:31,560
Speaker 1: If you're listening to this just in a diminished fashion. Yeah,

647
00:30:31,720 --> 00:30:33,360
Speaker 1: in some form of fashion, it's going to be there.

648
00:30:33,400 --> 00:30:35,600
Speaker 1: But I do think our benefits are unlikely to be

649
00:30:35,680 --> 00:30:38,640
Speaker 1: as high as what it's saying over at Social Security

650
00:30:38,720 --> 00:30:39,000
Speaker 1: do like GOV.

651
00:30:39,080 --> 00:30:40,800
Speaker 2: Yeah, if you log in, it'll give you kind of

652
00:30:40,840 --> 00:30:43,880
Speaker 2: a projection for what your Social Security income is likely

653
00:30:43,920 --> 00:30:45,360
Speaker 2: to be. I would take that with a grain of salt.

654
00:30:45,640 --> 00:30:50,560
Speaker 2: I would reduce that meaningfully into my retirement projections, like

655
00:30:50,880 --> 00:30:53,280
Speaker 2: something will be there in all likelihood. But the fact

656
00:30:53,320 --> 00:30:55,680
Speaker 2: that our politicians have let it get to this point

657
00:30:55,960 --> 00:30:58,720
Speaker 2: where social Security is kind of living on the precipice

658
00:30:59,320 --> 00:31:03,000
Speaker 2: that it boggles the mind. And there's just it's gonna

659
00:31:03,000 --> 00:31:06,120
Speaker 2: take some political will to change the future of Social

660
00:31:06,120 --> 00:31:08,600
Speaker 2: Security so that it's going to be around stick around

661
00:31:08,680 --> 00:31:10,480
Speaker 2: for the rest of us.

662
00:31:10,560 --> 00:31:12,120
Speaker 1: It's a real issue that's going to like there are

663
00:31:12,120 --> 00:31:15,160
Speaker 1: some things that are worth talking about or the politicians

664
00:31:15,200 --> 00:31:17,520
Speaker 1: actually addressing, and there are some things that really aren't

665
00:31:17,520 --> 00:31:18,800
Speaker 1: and it's just for show. This is like one of

666
00:31:18,800 --> 00:31:20,320
Speaker 1: the real things that needs to be addressed, or's like

667
00:31:20,400 --> 00:31:22,360
Speaker 1: it taking from a time bomb from exactly from a

668
00:31:22,440 --> 00:31:24,280
Speaker 1: policy standpoint, But I want to go back as well

669
00:31:24,360 --> 00:31:27,760
Speaker 1: to the like you mentioned that the personal factors and

670
00:31:27,760 --> 00:31:29,920
Speaker 1: some of the different trade offs. You got to keep

671
00:31:29,960 --> 00:31:31,680
Speaker 1: in mind too, some of the different life goals that

672
00:31:31,720 --> 00:31:34,320
Speaker 1: you have, because I like, I for folks out there

673
00:31:34,320 --> 00:31:36,520
Speaker 1: who are tapping it, who are tapping it early, right, Like,

674
00:31:36,560 --> 00:31:38,320
Speaker 1: so so far, like we kind of we address the

675
00:31:38,400 --> 00:31:41,080
Speaker 1: numbers sort of side of the equation, but like think

676
00:31:41,120 --> 00:31:42,760
Speaker 1: through what it is that you want to be able

677
00:31:42,760 --> 00:31:45,840
Speaker 1: to accomplish in your life while you still have the

678
00:31:45,920 --> 00:31:48,600
Speaker 1: ability to write. And so for retirees, if you're like,

679
00:31:48,680 --> 00:31:52,200
Speaker 1: you know, yeah, we could wait until age seventy and

680
00:31:52,480 --> 00:31:55,280
Speaker 1: you know we're going to be wealthier. Yes, you definitely will.

681
00:31:55,320 --> 00:31:58,680
Speaker 1: But that's that's like a no brainer, right, Like anytime

682
00:31:58,680 --> 00:31:59,280
Speaker 1: you cruach.

683
00:31:59,040 --> 00:32:02,720
Speaker 2: The numbers, waiting is always going to lead to you having.

684
00:32:02,480 --> 00:32:05,560
Speaker 1: More a higher net worth. And so like I think

685
00:32:05,560 --> 00:32:09,800
Speaker 1: the more important questions to ask are what am I

686
00:32:10,000 --> 00:32:12,160
Speaker 1: likely going to want to be able to do within

687
00:32:12,200 --> 00:32:14,440
Speaker 1: my retirement years or like what life goals am I

688
00:32:14,480 --> 00:32:16,320
Speaker 1: trying to accomplish? What kind of impact am I looking

689
00:32:16,360 --> 00:32:18,440
Speaker 1: to have? And I'll be like, maybe this is like

690
00:32:18,440 --> 00:32:20,560
Speaker 1: a little bit of that confession time. I'm not having

691
00:32:20,600 --> 00:32:22,960
Speaker 1: like retirement like questions. But Kate and I we've been

692
00:32:23,160 --> 00:32:25,760
Speaker 1: talking about this more and we're not talking about are

693
00:32:25,760 --> 00:32:29,240
Speaker 1: you going to claim now? Yeah, we're not like I'm sorry,

694
00:32:29,240 --> 00:32:32,520
Speaker 1: sir to you you need a yeah come back three years?

695
00:32:32,760 --> 00:32:36,120
Speaker 1: Uh wait hell am I? Yeah? But the ability to

696
00:32:36,880 --> 00:32:39,080
Speaker 1: wrestle with some of these thornier issues. I think it's

697
00:32:39,120 --> 00:32:41,280
Speaker 1: really important because and we're not again, so we're not

698
00:32:41,320 --> 00:32:45,640
Speaker 1: talking about tapping retirement, but other dollars that we've invested,

699
00:32:46,080 --> 00:32:49,440
Speaker 1: and it's kind of hard to wrap your mind around, like, Okay,

700
00:32:49,440 --> 00:32:52,600
Speaker 1: this is something that we've been putting money into for

701
00:32:52,640 --> 00:32:54,760
Speaker 1: a very long time. Uh, and so this is within

702
00:32:54,800 --> 00:32:56,920
Speaker 1: a brokerage, But what do we want now what to

703
00:32:57,000 --> 00:32:58,960
Speaker 1: do with that money? What is that going to allow

704
00:32:59,040 --> 00:33:02,160
Speaker 1: us to accomplish that we may not have the ability

705
00:33:02,200 --> 00:33:04,960
Speaker 1: to do a decade from now, two decades from now,

706
00:33:05,480 --> 00:33:08,800
Speaker 1: knowing that yes, by waiting, it's going to lead to

707
00:33:08,840 --> 00:33:11,560
Speaker 1: a larger sum of money, but what are the other

708
00:33:11,640 --> 00:33:13,520
Speaker 1: factors that you need to take into account?

709
00:33:13,560 --> 00:33:16,240
Speaker 2: And the game plan can change, right, So I've talked

710
00:33:16,240 --> 00:33:18,840
Speaker 2: about this on the show. When my mom was diagnosed

711
00:33:18,880 --> 00:33:21,600
Speaker 2: with cancer, like, the thought was, well, we will tap

712
00:33:21,640 --> 00:33:24,600
Speaker 2: some of our retirement funds, maybe a little bit more

713
00:33:24,640 --> 00:33:27,080
Speaker 2: than we otherwise would, just to be able to hold

714
00:33:27,080 --> 00:33:29,560
Speaker 2: off on taking Social Security. And the plan flipped once

715
00:33:29,600 --> 00:33:31,520
Speaker 2: my mom's diagnosis happened and it was like, no, no, no,

716
00:33:31,640 --> 00:33:34,320
Speaker 2: we're I want as many months of Social Security as

717
00:33:34,360 --> 00:33:35,640
Speaker 2: I can get because I don't know how long I'm

718
00:33:35,680 --> 00:33:37,680
Speaker 2: going to be around. And then we'll leave the retirement

719
00:33:37,760 --> 00:33:41,280
Speaker 2: funds a little more intact. And so this isn't necessarily

720
00:33:41,440 --> 00:33:44,480
Speaker 2: a cut and dry always easy to figure out this scenario.

721
00:33:44,520 --> 00:33:45,800
Speaker 1: I think this is like one of the hardest things

722
00:33:45,800 --> 00:33:47,720
Speaker 1: to figure out, Like this truly is like one of

723
00:33:47,760 --> 00:33:50,000
Speaker 1: the toughest nuts to crack. And Kate and I have

724
00:33:50,320 --> 00:33:52,760
Speaker 1: had a lot of different conversations over the years about

725
00:33:52,800 --> 00:33:56,280
Speaker 1: personal finances and business and like, okay, strategy different things

726
00:33:56,360 --> 00:33:59,000
Speaker 1: like that, but man, this is it's so difficult, and

727
00:33:59,480 --> 00:34:02,160
Speaker 1: I get we know we're not thinking through like life

728
00:34:02,160 --> 00:34:04,560
Speaker 1: expectancy that like those are less the questions I guess

729
00:34:04,560 --> 00:34:07,920
Speaker 1: that we're thinking about right now. But even still, like,

730
00:34:08,000 --> 00:34:10,399
Speaker 1: am I guaranteed the ability to wake up a week

731
00:34:10,440 --> 00:34:12,840
Speaker 1: from now and continue along doing the same things that

732
00:34:12,840 --> 00:34:14,799
Speaker 1: I'm doing today now? And I'm not saying in the

733
00:34:14,800 --> 00:34:19,920
Speaker 1: next week I'm gonna yolo durin my accounts? So you

734
00:34:20,000 --> 00:34:23,160
Speaker 1: got to find some sort of balance though, between yolo

735
00:34:24,160 --> 00:34:26,800
Speaker 1: or only looking to the long term, because that I

736
00:34:26,840 --> 00:34:29,600
Speaker 1: feel like that can be just as seductive, right, Like.

737
00:34:29,840 --> 00:34:31,560
Speaker 2: Let me build up the account balance as big as

738
00:34:31,600 --> 00:34:34,160
Speaker 2: I humanly can. Let me guarantee the fattest social Security check.

739
00:34:34,280 --> 00:34:36,920
Speaker 1: I've run. Guess what, I've run the compounding interest calculator,

740
00:34:36,920 --> 00:34:39,560
Speaker 1: I've run through the different glide pass and scenarios, and like,

741
00:34:39,920 --> 00:34:42,040
Speaker 1: that's a really easy button to hit. And if that

742
00:34:42,200 --> 00:34:44,360
Speaker 1: is all you're doing, the easy button is also to

743
00:34:44,520 --> 00:34:46,440
Speaker 1: just take social Security as quickly as you can be like,

744
00:34:46,520 --> 00:34:47,200
Speaker 1: let me give that money.

745
00:34:47,840 --> 00:34:49,279
Speaker 2: Yeah, and then you wake up five years down the

746
00:34:49,360 --> 00:34:51,680
Speaker 2: road and you're like, this check isn't as big as.

747
00:34:51,600 --> 00:34:53,399
Speaker 1: I wish it was or need it to be. Both

748
00:34:53,480 --> 00:34:55,000
Speaker 1: ends of the spectrum can be really easing a little

749
00:34:55,000 --> 00:34:56,919
Speaker 1: bit of layed gratification would have done me better. Yeah

750
00:34:56,960 --> 00:34:59,640
Speaker 1: so now, Yeah, I think the ability for folks to

751
00:35:00,160 --> 00:35:02,960
Speaker 1: address these sort of thorny topics more head on could

752
00:35:03,080 --> 00:35:05,960
Speaker 1: lead to productive conversations not only with like your partner

753
00:35:06,320 --> 00:35:08,840
Speaker 1: or your spouse, but even like maybe you don't you

754
00:35:08,840 --> 00:35:11,759
Speaker 1: don't have a partner like you yourself to like like think,

755
00:35:11,960 --> 00:35:14,000
Speaker 1: like spend some time thinking about this and like journaling

756
00:35:14,440 --> 00:35:17,080
Speaker 1: to perhaps uncover some of the different Yeah, what's going

757
00:35:17,080 --> 00:35:18,960
Speaker 1: on the under the hood? Yeah, what else are you

758
00:35:19,040 --> 00:35:20,040
Speaker 1: are you looking to accomplish?

759
00:35:20,120 --> 00:35:23,080
Speaker 2: Even that social security software? Are those calculators they don't

760
00:35:23,080 --> 00:35:26,480
Speaker 2: account for that, they don't have the journaling feature included,

761
00:35:26,560 --> 00:35:28,880
Speaker 2: So you do have to take some personal stuff into consideration.

762
00:35:29,000 --> 00:35:31,879
Speaker 2: It's the numbers matter, but the numbers aren't the only

763
00:35:31,960 --> 00:35:34,320
Speaker 2: thing that matters totally. All right, Matt, that's gonna do it.

764
00:35:34,440 --> 00:35:36,040
Speaker 2: For this episode, we'll have links to some of the

765
00:35:36,120 --> 00:35:39,200
Speaker 2: resources that we mentioned, including that maximize my social security

766
00:35:39,239 --> 00:35:42,040
Speaker 2: link up on our website at howtomoney dot com.

767
00:35:42,239 --> 00:35:44,640
Speaker 1: You know it. But until next time, best Friends Out,

768
00:35:44,719 --> 00:35:45,919
Speaker 1: Best Friends Out,