WEBVTT - Friday Flight - Paper Wealth, Target Date Trends, & Bye Bye Buffett #981 0:00:00.040 --> 0:00:01.960 Welcome to Out of Money. I'm Joel. 0:00:02.160 --> 0:00:05.320 I am Matt, and today we're talking paper, wealth, target, 0:00:05.360 --> 0:00:07.240 date trends, and bye bye Buffett. 0:00:26.120 --> 0:00:28.320 You know what, buddy, this is our Friday flight where 0:00:28.320 --> 0:00:31.960 we're going to tackle the most pressing personal finance headlines 0:00:32.000 --> 0:00:36.320 out there, specifically how they pertain to your wallet. Joel, 0:00:36.360 --> 0:00:39.040 you got to note here about Walmart. What's what's the 0:00:39.080 --> 0:00:39.960 latest with Walmart? 0:00:40.000 --> 0:00:41.919 I want to give you a big fan I want 0:00:41.960 --> 0:00:44.839 to give a quick I'm not not a fan of Walmart. 0:00:44.880 --> 0:00:47.560 Walmart. Yeah, so we've been doing more shopping there lately. 0:00:47.720 --> 0:00:49.720 It's just not our you know, there's only one place 0:00:49.720 --> 0:00:52.120 in my heart, and it's shaped like Aldi. 0:00:52.200 --> 0:00:54.200 You should actually get an Aldie tattoo over your heart. 0:00:54.240 --> 0:00:56.440 I think that'd be great, maybe one of these days. 0:00:56.560 --> 0:01:00.760 So okay to two different retailer police. Then I wanted 0:01:00.800 --> 0:01:03.240 to highlight here one that's consumer friendly in one that's 0:01:03.280 --> 0:01:06.640 not so Walmart. And I didn't realize this until I 0:01:06.640 --> 0:01:08.880 went in the other day. I bought some shoes from 0:01:08.920 --> 0:01:12.800 my little dude online and turns out they were too big, 0:01:13.080 --> 0:01:14.440 so I had to go in the store. 0:01:14.800 --> 0:01:16.360 You're not gonna hang on to them, wait for them 0:01:16.400 --> 0:01:16.959 to grow into them. 0:01:17.319 --> 0:01:18.959 You're right, I probably could, but I had to go 0:01:19.000 --> 0:01:22.319 in anyway, okay, right to buy the right size, and 0:01:22.880 --> 0:01:25.679 they the when I got there, the price at the 0:01:25.680 --> 0:01:29.399 store for those shoes was higher than it was online, 0:01:30.000 --> 0:01:32.640 and they wouldn't let me do an exchange. And they 0:01:32.680 --> 0:01:34.759 wouldn't so I could return and then I could buy 0:01:35.040 --> 0:01:36.240 and then if but then I was going to be 0:01:36.280 --> 0:01:38.280 spending more than what I would have paid online. So 0:01:38.319 --> 0:01:41.040 they that I was just unfamiliar with the fact that 0:01:41.080 --> 0:01:45.160 Walmart does not match online prices in stores, which to 0:01:45.240 --> 0:01:48.320 me does not seem And I guess I would get 0:01:48.320 --> 0:01:52.040 it too, because there's more third party sellers on Walmart. Now, 0:01:52.080 --> 0:01:54.640 if it wasn't actually sold by Walmart, it's like, all right, 0:01:54.680 --> 0:01:56.360 I get that, don't price match that. But if it 0:01:56.400 --> 0:01:58.920 is sold in Walmart item, Yeah, if it's sold in 0:01:58.960 --> 0:02:00.880 ship by Walmart, why wouldn't they match it? 0:02:00.960 --> 0:02:04.000 You know, who would match that? Who's that Aldi? Would 0:02:06.040 --> 0:02:07.880 I don't know how many pairs of shoes they're buying 0:02:07.920 --> 0:02:09.840 an Aldi, But you know, like Kate and I we 0:02:09.919 --> 0:02:12.680 joke about this. Anytime there's something kind of random that 0:02:12.680 --> 0:02:14.919 we need, we just look at each other and I'm like, oh, 0:02:14.919 --> 0:02:17.959 we've just voiced it into existence, because then you walk 0:02:18.040 --> 0:02:21.680 down that seasonal aisle or like I swear it pops up, 0:02:21.720 --> 0:02:24.840 it's there, Like you were recently talking about getting a 0:02:24.880 --> 0:02:28.959 composter tapped into your home. I think it just means 0:02:28.960 --> 0:02:32.880 that I'm just way more typical average American consumer than 0:02:33.040 --> 0:02:34.920 maybe I would like to admit. That could be. That's 0:02:34.960 --> 0:02:35.200 all I go. 0:02:35.280 --> 0:02:37.480 So I highlighted I highlighted a negative store policy. Let 0:02:37.520 --> 0:02:41.440 me highlight a positive one from best Buy. So my 0:02:41.720 --> 0:02:44.440 dad texted me and he's like, hey, I know you're 0:02:44.600 --> 0:02:46.680 like where you live, they're better about picking up old 0:02:46.680 --> 0:02:49.120 electronic items and stuff like that. Can can I drop 0:02:49.200 --> 0:02:51.079 them off at your house? And can you ask your 0:02:51.120 --> 0:02:53.200 trash provider to pick it up? And I was like, yeah, 0:02:53.320 --> 0:02:55.920 but you know you could take this stuff to best 0:02:55.919 --> 0:02:57.760 Buy instead. And when you go to best Buy, look 0:02:57.760 --> 0:03:01.239 at their like electronics recycling page. They will take almost 0:03:01.320 --> 0:03:04.800 anything for for free. So if you've got like my 0:03:04.880 --> 0:03:07.440 dad had, like old modems and DVD players and stuff 0:03:07.520 --> 0:03:10.720 lying around remotes, they'll take old TV's under a certain size. 0:03:10.880 --> 0:03:13.760 So if you're like I've kind of accumulated a lot 0:03:13.800 --> 0:03:17.520 of junk electronics that's past their prime and they're not 0:03:17.639 --> 0:03:19.360 you can't sell them, and you're gonna actually have to 0:03:19.400 --> 0:03:20.919 actually pay money to dispose of them. 0:03:20.960 --> 0:03:22.880 See take them to best Buy. I know you're supposed 0:03:22.919 --> 0:03:24.760 to recycle, but I think there's a whole lot of folks, dude, 0:03:24.760 --> 0:03:27.000 who are out there just tossing that stuff. You know. 0:03:27.120 --> 0:03:28.600 I think that's probably like do you ever feel that 0:03:28.600 --> 0:03:29.320 way about recycling? 0:03:29.400 --> 0:03:31.040 Kind of can't with a fifty five inch TV, but 0:03:31.080 --> 0:03:32.240 you probably can with that old murder. 0:03:33.000 --> 0:03:35.640 But could he not sell that fifty five inch even 0:03:35.680 --> 0:03:37.600 for like well it was maybe. I mean that's a 0:03:37.600 --> 0:03:40.320 good point too, because like a no, no, here's a 0:03:40.320 --> 0:03:43.360 flas screen, but like the screen just went out, you 0:03:43.360 --> 0:03:43.960 can't sell that. 0:03:44.120 --> 0:03:45.680 Yeah, I was gonna say, I mean maybe there's some 0:03:45.760 --> 0:03:48.080 tinkerer hobbyists who would be interested in that. 0:03:48.160 --> 0:03:50.000 You know. What I was gonna say was that sometimes 0:03:50.000 --> 0:03:54.400 I feel like it is not a futile endeavor, but 0:03:54.480 --> 0:03:57.400 like it, like recycling, like I do regular recycling. Like 0:03:57.400 --> 0:04:00.680 this morning, even I was preparing some strawberries from my lunch, 0:04:01.400 --> 0:04:03.560 Like what did I do with a plastic strawberry container? 0:04:03.760 --> 0:04:06.080 Tossed it in the recycling bin, like we could know 0:04:06.400 --> 0:04:09.320 we're even composting actually, like we are, like we're cutting 0:04:09.480 --> 0:04:11.960 the little tops off and so hip we are reducing 0:04:12.040 --> 0:04:14.920 our wasst and so we are doing our small little part. 0:04:15.280 --> 0:04:18.120 But like sometimes when I think about it, I feel 0:04:18.120 --> 0:04:19.760 like we are only moving the needle, like points zero 0:04:19.839 --> 0:04:22.200 zero zero zero, Like I don't know, you can put 0:04:22.200 --> 0:04:25.839 tons of zeros one percent, like just even in our country. 0:04:25.960 --> 0:04:28.039 Like and when I start thinking about the world large, 0:04:28.080 --> 0:04:30.159 like at large, like you think about China, if you 0:04:30.160 --> 0:04:33.880 think about countries that are burning massive amounts of coal 0:04:34.080 --> 0:04:37.800 fossil fuels, and how does that they handle waste, I'm 0:04:37.839 --> 0:04:41.000 just like, man, maybe like for our little neighborhood over here, 0:04:41.040 --> 0:04:43.720 we're doing a good thing. But I don't know, sometimes 0:04:43.720 --> 0:04:46.960 I get discouraged when I think about just the world 0:04:46.960 --> 0:04:49.240 at large, man, and all that's going on. Oh man, 0:04:49.279 --> 0:04:52.400 we went broad. You should still do the right thing. 0:04:52.600 --> 0:04:55.680 I like, we are still recycling, but sometimes I have 0:04:55.760 --> 0:04:58.560 a hard time, I guess, get getting super excited about that. 0:04:58.680 --> 0:05:00.640 But that being said, I'm glad you brought the policy up. 0:05:00.680 --> 0:05:03.440 Talk about the deforestation of the Amazon rainforest. Now, Matt, 0:05:03.480 --> 0:05:05.560 it's and it's certainly great that there are companies out 0:05:05.560 --> 0:05:08.080 there who are processing these electronics, making sure that there's 0:05:08.120 --> 0:05:11.479 not what is it lad and mercury getting into the 0:05:11.480 --> 0:05:14.240 water supply and different things like that. Agree, glad that 0:05:14.480 --> 0:05:16.240 they're taking care of that, because I don't want to 0:05:16.279 --> 0:05:20.560 be living somewhere man where those forever chemicals and whatever. 0:05:20.720 --> 0:05:22.880 Is that that what they're called forever chemicals? Yeah, forever 0:05:22.960 --> 0:05:26.280 thinks forever plastics. Yeah, that's the new thing now, plastics, microplastics. 0:05:26.320 --> 0:05:29.000 We're all eating the microplastics inside of us. It's true. 0:05:29.640 --> 0:05:32.040 So trying to highlight something good and bad, I feel 0:05:32.040 --> 0:05:33.280 like we have down more of the bad path. 0:05:33.920 --> 0:05:34.320 Not bad. 0:05:34.480 --> 0:05:38.320 Maybe, Okay, let's highlight something else that's good though here 0:05:38.480 --> 0:05:43.119 because we talked what last week about the slate truck 0:05:43.160 --> 0:05:45.600 that's twenty grand, which is awesome thing. Love that that's 0:05:45.640 --> 0:05:48.640 good news. Well, now, not just our cars shrinking and 0:05:48.640 --> 0:05:53.159 getting less expensive, but we're seeing signs that new homes 0:05:53.200 --> 0:05:55.960 in the United States they're continuing to shrink in size. 0:05:56.440 --> 0:05:59.280 So I think part of that is because of negative news, 0:05:59.400 --> 0:06:01.960 the higher cost the building, and the fact that prices 0:06:02.200 --> 0:06:05.200 are remaining elevated. Builders are like, well, I can produce 0:06:05.279 --> 0:06:08.520 the square footage of the house that I'm building, and 0:06:08.800 --> 0:06:10.360 I could do just fine and make a profit, and 0:06:10.400 --> 0:06:14.560 I'm gonnapeld more buyers. So and we are seeing some 0:06:14.600 --> 0:06:16.560 price cuts too in the housing market. We're actually going 0:06:16.600 --> 0:06:19.280 to dedicate a whole lot of money newsletter to housing soon, 0:06:19.360 --> 0:06:22.520 so please sign up for that. But yeah, some of 0:06:22.560 --> 0:06:26.560 the new apartment sizes are actually shrinking in size two. 0:06:26.839 --> 0:06:29.599 So when new apartments are being built, especially gen zs, 0:06:29.600 --> 0:06:31.960 they're like, yeah, give me all the amenities, but give 0:06:32.000 --> 0:06:34.719 me a tiny box in which to stick my bed 0:06:35.040 --> 0:06:37.680 and I'll be fine. So I think this is a 0:06:37.680 --> 0:06:40.400 good thing. I think bigger isn't always better, And in fact, 0:06:40.520 --> 0:06:43.960 when you think about it, bigger means more maintenance costs. 0:06:43.960 --> 0:06:47.000 It means higher utility bills. The five thousand square foot 0:06:47.040 --> 0:06:49.360 house versus the twenty five hundred square foot house, Yeah, 0:06:49.360 --> 0:06:51.719 it's going to cost you a lot more money to maintain. 0:06:52.080 --> 0:06:54.240 We talked about secondary cost last week, Well you got 0:06:54.240 --> 0:06:57.040 a factor in the secondary cost of home ownership two. 0:06:57.720 --> 0:07:01.080 And like, I think just bigger is better mentality, maybe 0:07:01.080 --> 0:07:04.600 it's falling by the wayside a little bit. Finally, I 0:07:04.640 --> 0:07:07.279 just think being content to live in smaller quarters, it 0:07:07.360 --> 0:07:09.800 just it means less money going towards housing, and more 0:07:09.880 --> 0:07:12.440 money that you have to save and invest to grow 0:07:12.480 --> 0:07:14.640 your net worth, to have more options when it comes 0:07:14.720 --> 0:07:17.720 to work and free time. The more we tossed into 0:07:17.720 --> 0:07:19.680 our homes, the less flexibility we have. 0:07:19.840 --> 0:07:22.360 Totally agree. Yeah, I also wonder if the pendulum is 0:07:22.360 --> 0:07:25.000 swinging back as well as fewer folks are working from home. 0:07:25.440 --> 0:07:27.280 Now I'm having to go in so I'm just looking 0:07:27.320 --> 0:07:29.000 for a place to crash at night. For the most part, 0:07:29.000 --> 0:07:29.760 I think that's probably true. 0:07:29.840 --> 0:07:32.560 Yeah, for a minute, there was that push towards especially 0:07:32.680 --> 0:07:36.200 I remember my little sister living in a studio apartment. 0:07:36.200 --> 0:07:37.840 That's when they upgraded, right, Yeah, and they were like, 0:07:37.880 --> 0:07:40.560 we can't both work from home here exactly. It makes sense. 0:07:40.880 --> 0:07:43.720 So while we're speaking of homes, the average American homeowner 0:07:43.760 --> 0:07:47.800 is also rich in home equity. Collectively speaking, we've got 0:07:47.800 --> 0:07:51.400 more than thirty five trillion dollars in our homes thanks 0:07:51.400 --> 0:07:54.680 to the appreciation that they've experienced over time. And so 0:07:55.160 --> 0:07:57.200 if you, let's say, bought a house in the last 0:07:57.240 --> 0:08:00.840 ten to fifteen years, you have inevitably increase your net 0:08:00.840 --> 0:08:03.800 worth because of that home, just because of the trend. Yeah, 0:08:04.040 --> 0:08:07.920 it's it is up something like eighty percent since twenty twenty, 0:08:07.960 --> 0:08:10.840 so even the more recent years it has been even 0:08:10.880 --> 0:08:15.280 more significant. But it is really only wealth on paper, 0:08:15.880 --> 0:08:18.880 and it can add to this thing called the wealth effect. 0:08:18.960 --> 0:08:22.600 And let me explain that basically, you feel richer, it 0:08:22.600 --> 0:08:24.960 can lead to increased spending. Because of that, you spend 0:08:25.000 --> 0:08:27.120 a little bit more freely. But you know, the tough 0:08:27.120 --> 0:08:30.360 thing is home equity. It isn't all that liquid. And 0:08:30.400 --> 0:08:34.240 because we are typically beneficiaries of home appreciation right like, 0:08:34.280 --> 0:08:37.240 we are not necessarily working for it. I think it 0:08:37.360 --> 0:08:40.040 could mean for some folks out there that it's easier 0:08:40.080 --> 0:08:42.360 to borrow and spend, kind of like an easy come, 0:08:42.360 --> 0:08:44.320 easy go sort of thing. I think. So I want 0:08:44.360 --> 0:08:45.800 to put this on folks radar because I want them 0:08:45.800 --> 0:08:47.960 to be careful of this. You want to be careful 0:08:47.960 --> 0:08:50.640 of this temptation. I think more than ever, it's important 0:08:50.640 --> 0:08:52.360 to I think the rule of thumb here is to 0:08:52.400 --> 0:08:54.400 know thyself, because I do think that there are some 0:08:54.440 --> 0:08:57.320 folks like I don't think about the homes that we 0:08:57.440 --> 0:09:00.040 own like investment properties at all when I calculate my 0:09:00.040 --> 0:09:03.320 my net worth, when I calculate some far off payout 0:09:03.360 --> 0:09:05.959 amount once the homes are paid for that kind of thing. 0:09:06.200 --> 0:09:08.680 But I think there might be some folks where, you know, 0:09:08.679 --> 0:09:10.319 if they still got the Zillow app on their phone 0:09:10.360 --> 0:09:13.559 and they're like, oh, it's increasing again, that's elevating over 0:09:13.600 --> 0:09:15.560 every price of use. Yeah. It kind of makes me 0:09:15.559 --> 0:09:17.160 think of like credit lines. Like if you are the 0:09:17.240 --> 0:09:20.400 kind of person who can handle a thirty thousand dollars 0:09:20.640 --> 0:09:23.920 available credit on your credit card and you hardly spend 0:09:23.960 --> 0:09:25.720 on that card at all, You don't go anywhere near 0:09:26.240 --> 0:09:29.080 that thirty thousand dollars, maybe put like three hundred bucks 0:09:29.080 --> 0:09:31.280 on it here and there, then I think you are 0:09:31.320 --> 0:09:35.240 probably the kind of person who isn't necessarily tempted by 0:09:35.280 --> 0:09:37.520 that increased home equity. But if you are the kind 0:09:37.520 --> 0:09:40.040 of person who's just like, woh, they just upgrade. I 0:09:40.080 --> 0:09:42.360 got seven more thousand dollars available to me. I just 0:09:42.400 --> 0:09:46.480 went from twenty one thousand to twenty eight like time 0:09:46.480 --> 0:09:48.319 to keeping track of that, time to go out and spend. 0:09:48.360 --> 0:09:50.760 If you, yeah, exactly, if that's if you're that kind 0:09:50.800 --> 0:09:53.240 of person, I would also say be careful when it 0:09:53.240 --> 0:09:55.719 comes to home equities. So I think there's two things here. 0:09:55.760 --> 0:09:57.880 I think one, don't treat your home like a piggybank, 0:09:58.200 --> 0:10:02.240 because if if you do, there are financial repercussions down 0:10:02.240 --> 0:10:04.679 the line. And then also kind of going on that 0:10:04.720 --> 0:10:08.040 wealth effect thing just because it exists. Don't let that 0:10:08.080 --> 0:10:13.320 give you the permission right to spend money in a 0:10:13.320 --> 0:10:15.920 more ridiculous way just because you're like, why, yeah, I'm 0:10:15.920 --> 0:10:17.600 not bloaded, man, I got like three hundred and fifty 0:10:17.640 --> 0:10:19.600 grand in home equity, so I don't need to be 0:10:19.679 --> 0:10:21.880 as worried. I can be a little more profligate with 0:10:21.920 --> 0:10:23.640 my spending. I don't think that's the case. Or let's 0:10:23.640 --> 0:10:26.080 talk about target date funds, Matt. They just crossed an 0:10:26.080 --> 0:10:30.240 important threshold. There are now more than four trillion dollars 0:10:30.280 --> 0:10:34.120 in assets that are held inside specifically of target date funds, 0:10:34.400 --> 0:10:36.880 and morning Star wrote an article about this and they 0:10:37.320 --> 0:10:40.600 basically detailed the rise of target date funds in the 0:10:40.679 --> 0:10:44.280 last couple of decades. They're also holding up better right now, 0:10:44.360 --> 0:10:47.640 right you have in the recent market volatility there because 0:10:47.760 --> 0:10:51.080 of their more balanced approach, they're not going to see 0:10:51.160 --> 0:10:54.600 as dramatic of a decline typically as somebody who is 0:10:54.720 --> 0:10:57.720 invested more like you and I, who's one hundred percent 0:10:57.760 --> 0:11:01.120 invested in stocks. On top of this, z fees on 0:11:01.200 --> 0:11:04.040 these funds continue to decline. Morning Stars said that in 0:11:04.120 --> 0:11:07.200 twenty fifteen they were zero point five to five percent 0:11:07.240 --> 0:11:09.280 on average. Now they're point twenty nine percent on average. 0:11:09.320 --> 0:11:11.720 So I like that target date funds are experiencing the 0:11:11.720 --> 0:11:17.160 same decline in fees in expense ratios that many other 0:11:17.200 --> 0:11:20.840 funds have seen as competition has increased, and the big 0:11:20.880 --> 0:11:24.520 low cost investment houses like Vanguard, Fidelity, and Schwab. 0:11:24.520 --> 0:11:26.080 Have really pushed the envelope on that. 0:11:26.320 --> 0:11:28.440 And so Vanguard and Fidelity in particular have some of 0:11:28.480 --> 0:11:31.440 the best low cost target date fund options. Their expense 0:11:31.520 --> 0:11:33.720 ratio is a heck of a lot less than even 0:11:33.760 --> 0:11:36.400 the average. We're talking about zero point oh eight percent, 0:11:36.840 --> 0:11:39.800 which is pretty darn good. And so for investors who 0:11:39.960 --> 0:11:43.359 like simplicity, who like low costs, I do think it's 0:11:43.200 --> 0:11:46.240 it is important for us to consistently mention that target 0:11:46.320 --> 0:11:50.160 date funds can still be a great option, particularly inside 0:11:50.400 --> 0:11:53.280 of your retirement accounts, because if you invest in a 0:11:53.280 --> 0:11:57.160 target date fund, it's going to automatically shift the allocation 0:11:57.320 --> 0:11:59.240 as you age. It's easy, PZ. It's a set it 0:11:59.240 --> 0:12:02.240 and forget it sort of. And I think target date 0:12:02.240 --> 0:12:05.760 funds while they're not my one hundred percent favorite fully 0:12:05.800 --> 0:12:09.360 optimized way to invest for really young people. I think 0:12:09.400 --> 0:12:11.199 they're still like, don't let perfect be the enemy a 0:12:11.200 --> 0:12:12.400 good They can still be a good option. 0:12:12.440 --> 0:12:15.200 You're still solid. Yeah, let's talk about another investing trend. 0:12:15.520 --> 0:12:18.400 Gold is the talk of the town these days, in 0:12:18.400 --> 0:12:21.600 particularly because of the less predictable economic conditions that we've 0:12:21.600 --> 0:12:24.520 been experiencing. Actually, gold, it has seen better returns than 0:12:24.520 --> 0:12:26.600 the S and P five hundred over the past twenty 0:12:26.679 --> 0:12:30.000 years to think about, and it is. Yeah, it's a 0:12:30.000 --> 0:12:32.320 bit more of like cherry picking data, I think, but 0:12:32.360 --> 0:12:34.679 still twenty here's a long term recent Yeah, I mean, 0:12:34.760 --> 0:12:36.720 but if you zoom out to thirty years, the SMP 0:12:36.840 --> 0:12:41.040 blows it away. Yeah, you zoomed out to thirty forty fifty. Uh, 0:12:41.120 --> 0:12:44.080 you zoom out one hundred years, dude, Like, it's not 0:12:44.080 --> 0:12:47.480 even close. Over the last six months, last six months, 0:12:47.600 --> 0:12:51.679 last twenty years, surprisingly it has done better. But the 0:12:51.800 --> 0:12:54.480 question then comes up, should we all jump on this 0:12:54.559 --> 0:12:58.400 gold investing bandwagon on this trend? Most experts out there 0:12:58.440 --> 0:13:01.800 would tell you that gold isn't a necessary part of 0:13:01.840 --> 0:13:05.880 your investment portfolio, But if you want to hold a 0:13:05.920 --> 0:13:07.920 little bit of gold. I think that can makes a 0:13:07.960 --> 0:13:10.400 whole lot of sense. We always talk about holding five 0:13:10.400 --> 0:13:14.800 percent or less of your overall portfolio in different things 0:13:15.200 --> 0:13:20.400 that we think are okay, yeah, like precious metals, bitcoin, 0:13:21.240 --> 0:13:22.880 like you just gold could be one of those you 0:13:22.920 --> 0:13:25.080 just love this one company and you're like, you know what, 0:13:25.160 --> 0:13:26.920 I'm going to go buy me some Warner Brothers like 0:13:26.960 --> 0:13:30.360 I did after we talked about Harry Potter being released, 0:13:30.400 --> 0:13:32.960 or did you Yeah, I mean, just like one share 0:13:33.120 --> 0:13:35.920 part of your play portfolio. It's just for kicks, just 0:13:35.960 --> 0:13:39.080 to have time stamps. Oh this is when that happened. 0:13:39.120 --> 0:13:41.720 And I don't know. It's just a little something that's 0:13:42.000 --> 0:13:44.840 fun to do. But it's worth mentioning because you're going 0:13:44.880 --> 0:13:47.319 to see more headlines about gold. You're going to see 0:13:47.360 --> 0:13:50.719 more advertisements specifically from gold buying companies, especially with the 0:13:50.760 --> 0:13:54.120 runoff and values that we've seen. They're loaded. Then they're 0:13:54.120 --> 0:13:55.920 gonna be like, y'all need to get in on this, 0:13:56.160 --> 0:13:58.480 and they've got so much money come through our proprietary 0:13:58.520 --> 0:14:02.480 system to buy gold because every investor needs some gold 0:14:02.520 --> 0:14:04.600 in their lives, and they're gonna do the hard pitch. 0:14:04.640 --> 0:14:06.920 We would actually prefer if you want to old some gold. 0:14:06.960 --> 0:14:08.520 We would prefer that you stick with some low cost 0:14:08.559 --> 0:14:12.719 ETFs that invest in gold specifically, like GLDM. That is 0:14:12.760 --> 0:14:15.320 a great option with a very small fee. 0:14:15.440 --> 0:14:17.120 Is Costco still selling the gold bars? 0:14:17.240 --> 0:14:20.520 Depens on the season? Okay? Are they still selling giant 0:14:20.560 --> 0:14:22.720 wheels of cheese of Parmisan? Yeah? 0:14:22.720 --> 0:14:25.120 I guess Palmagano. Yeah, I don't know what the regiano 0:14:25.200 --> 0:14:28.160 the gold buying season is, but yeah, I wonder. Typically 0:14:28.160 --> 0:14:29.520 when they when they put them out there, they sell 0:14:29.520 --> 0:14:31.840 it quickly. But even that, like they're. 0:14:31.440 --> 0:14:35.360 Still selling two thousand dollars Yu steaks, I mean probably. 0:14:35.440 --> 0:14:37.120 Sometimes they put these things out there and I'm just like, 0:14:37.320 --> 0:14:39.400 who the heck somebody is is buying this? 0:14:39.480 --> 0:14:42.960 Obviously somebody is, But I think that you're right, Like 0:14:43.000 --> 0:14:44.960 buying it inside of a low cost ETF makes more 0:14:44.960 --> 0:14:47.520 sense even than buying like physical gold at a place 0:14:47.560 --> 0:14:49.080 like Costco, which is going to give you a better 0:14:49.120 --> 0:14:51.120 deal than you're going to get almost anywhere else for 0:14:51.120 --> 0:14:53.160 buying gold. And some people like I don't want to 0:14:53.160 --> 0:14:55.480 stick it under their mattress or something like that, that's. 0:14:55.400 --> 0:14:55.960 Not a deal. 0:14:56.000 --> 0:14:58.520 Like, if you want some gold exposure, low cost ETFs 0:14:58.520 --> 0:15:00.320 are typically the best way to go. Well, we're talking 0:15:00.320 --> 0:15:03.960 about investing, Matt. Let's talk about the main headline this week, 0:15:04.000 --> 0:15:06.320 the one that hits us right in the sweet spot 0:15:06.400 --> 0:15:09.520 in our hearts. Warren Buffett stepping down as the CEO 0:15:09.680 --> 0:15:12.720 of Berkshire Hathaway, did you shed a tear when. 0:15:12.600 --> 0:15:15.560 You heard the news? I not really. I'm like, yeah, 0:15:15.600 --> 0:15:16.520 he's like so old. 0:15:17.920 --> 0:15:19.480 Good for him at the age of ninety four for 0:15:19.520 --> 0:15:22.240 finally like saying I mean again, it doesn't at the 0:15:22.320 --> 0:15:24.040 end of the year, in seven months or whatever. 0:15:24.120 --> 0:15:25.800 And maybe because I know you and I we've had 0:15:25.840 --> 0:15:28.240 more conversations too, I mean, with Charlie Munger having died, 0:15:28.280 --> 0:15:32.360 we talked about Warren Buffett earlier this year. We actually 0:15:32.360 --> 0:15:35.360 had David clark On talking about the new towel of 0:15:35.560 --> 0:15:39.040 Warren Buffett. Yeah. I don't know, it makes sense. It 0:15:39.160 --> 0:15:41.080 totally makes sense. He's old, he's a sharp guy. 0:15:41.080 --> 0:15:43.560 I don't begrudge him this, and I actually encourage him 0:15:43.880 --> 0:15:47.440 in this endeavor to like I bag work and live 0:15:47.440 --> 0:15:49.520 out the rest of your years with I don't know, 0:15:49.560 --> 0:15:51.560 hopefully a little less. But apparently he's going to remain 0:15:51.640 --> 0:15:54.440 the chairman of Berkshire, so he's not like closing out 0:15:54.520 --> 0:15:58.120 completely altogether. But he really is the goat and and been. 0:15:58.200 --> 0:16:00.640 So many of the moves he's made over the decades 0:16:00.720 --> 0:16:04.640 that you could highlight have been impressive. And Berkshire's returns 0:16:04.680 --> 0:16:06.360 you're talking about the gold versus the S and P. 0:16:06.520 --> 0:16:09.880 Will Berkshire his company, those returns have far outpaced in 0:16:09.960 --> 0:16:12.200 the S and P during his investing tenure, or something 0:16:12.280 --> 0:16:15.560 like basically twenty percent returns versus ten plus percent returns 0:16:15.560 --> 0:16:18.400 for the S and P over those many decades. But 0:16:18.480 --> 0:16:21.320 I think it's important to highlight the fact that he 0:16:21.480 --> 0:16:25.600 is an anomaly and most of us shouldn't aspire to 0:16:25.640 --> 0:16:28.440 be like Warren Buffett. I mean, in some ways we should, right, 0:16:28.480 --> 0:16:32.520 I appreciate his humility and his intelligence, but his frugal nature. Yeah, 0:16:32.520 --> 0:16:34.960 But in other ways, it's like, don't try to do that. 0:16:35.000 --> 0:16:37.360 Because I saw the stat Matt Jason's wagen the Wall 0:16:37.400 --> 0:16:40.400 Street Journal estimates that Warren Buffett has read more than 0:16:40.400 --> 0:16:43.960 one hundred thousand financial statements of companies, and he said, 0:16:44.280 --> 0:16:46.920 that's actually probably pretty conservative. I bet Warren thread quite 0:16:46.960 --> 0:16:49.400 a bit more than that. And my question to how 0:16:49.400 --> 0:16:51.520 the money listeners is are you willing to do that? 0:16:51.920 --> 0:16:54.440 Are you, Nope, Are you going to spend your days, 0:16:54.680 --> 0:16:58.600 your evenings instead of hanging out with your partner or 0:17:00.000 --> 0:17:02.800 doing a hobby reading financial statements of companies. Some people 0:17:02.800 --> 0:17:05.120 are gonna say, yeah, I am, because that's really fun 0:17:05.160 --> 0:17:08.160 for me. Then maybe you are in the Warren Buffett 0:17:08.200 --> 0:17:12.120 ilk who can and should invest in single stocks. But 0:17:12.200 --> 0:17:15.680 for most of us normies who don't do that, then 0:17:15.920 --> 0:17:18.080 I think it's just a good le Hey. Index funds 0:17:18.080 --> 0:17:19.560 make the most sense, and that's why, Yeah, we shall 0:17:19.560 --> 0:17:22.080 also do what Warren Buffett says, not what he does. 0:17:22.119 --> 0:17:24.440 What he says to every day investors is like, yeah, 0:17:24.440 --> 0:17:26.840 investing most of your assets into the S and P 0:17:26.880 --> 0:17:28.920 five hundred is going to build you wealth over time. 0:17:29.080 --> 0:17:30.600 You don't even need to do it the way I 0:17:30.600 --> 0:17:32.200 did it. I love that he did it the way 0:17:32.200 --> 0:17:35.159 he did it. I think he's passed on a lot 0:17:35.160 --> 0:17:38.680 of great lessons to individual investors over the years, patients 0:17:38.960 --> 0:17:43.240 long term thinking, the beauty of simplicity. He's just been 0:17:43.440 --> 0:17:47.200 such a remarkable fixture in the investing landscape for so long. 0:17:47.640 --> 0:17:50.080 But I think this is a good reminder to learn 0:17:50.080 --> 0:17:53.320 from Warren Buffett and not necessarily try to mimic him. 0:17:53.400 --> 0:17:55.399 Okay, So I don't know if this is uncouth to 0:17:55.440 --> 0:17:58.480 bring this up, but maybe with Warren getting oh yeah, 0:17:59.200 --> 0:18:01.160 ninety four years old, maybe this is a good reminder 0:18:01.200 --> 0:18:04.960 to review your beneficiaries if you haven't on your different accounts. 0:18:05.600 --> 0:18:07.720 I'm sure Warren has this so you know, buttoned up. 0:18:07.920 --> 0:18:09.879 I'm sure he does. But I saw a recent article 0:18:10.480 --> 0:18:12.680 talking about this. We haven't mentioned this on the show 0:18:12.760 --> 0:18:15.359 in a while, but if there have been any major 0:18:15.400 --> 0:18:18.680 life changes, make sure that you make those changes within 0:18:18.720 --> 0:18:22.600 the back end of your retirement accounts. Contrary to popular belief, 0:18:22.600 --> 0:18:26.320 your beneficiary it actually supersedes what is in your will, 0:18:26.960 --> 0:18:29.359 so like you don't want the money that you've been 0:18:29.400 --> 0:18:32.360 working hard to grow to be left to someone that 0:18:32.720 --> 0:18:34.919 maybe you no longer intend for that money to go 0:18:35.000 --> 0:18:37.439 to you. In that article they actually mentioned Heath Ledger 0:18:37.680 --> 0:18:41.520 and how with his unexpected death, he hadn't named his 0:18:41.760 --> 0:18:43.879 daughter as the beneficiary. Instead he had left all the 0:18:43.880 --> 0:18:46.240 money to like his sisters and his parents. That's like 0:18:46.280 --> 0:18:49.600 a you know, celebrity obviously, so it gets slightly more attention, 0:18:49.720 --> 0:18:52.360 but that's just a great example. In the end, they 0:18:52.400 --> 0:18:55.040 gave her all the money, so they took care of her, 0:18:55.040 --> 0:18:57.240 But that's still the kind of situation that you ideally 0:18:57.280 --> 0:18:58.679