1
00:00:00,080 --> 00:00:03,320
Speaker 1: Welcome to How the Money and I am that, And

2
00:00:03,440 --> 00:00:25,079
Speaker 1: today we're answering your listener questions. You know, I was

3
00:00:25,120 --> 00:00:27,600
Speaker 1: about to introduce this episode as if our listeners were

4
00:00:27,640 --> 00:00:29,440
Speaker 1: kind of like pin pals who we write too, except

5
00:00:29,480 --> 00:00:32,600
Speaker 1: for instead of writing, we send audio grams back and forth.

6
00:00:34,000 --> 00:00:37,000
Speaker 1: Except that you go, it's an ongoing relationship and this

7
00:00:37,080 --> 00:00:38,360
Speaker 1: is kind of like a more of like a one

8
00:00:38,360 --> 00:00:40,479
Speaker 1: time things, right did you? Although you can submit more

9
00:00:40,560 --> 00:00:43,800
Speaker 1: questions if you want. I guess right, And some listeners actually, yeah,

10
00:00:44,240 --> 00:00:46,639
Speaker 1: there's some listeners who we've actually heard from a decent bit.

11
00:00:46,680 --> 00:00:48,040
Speaker 1: You know. It's funny. I feel bad that we're not

12
00:00:48,080 --> 00:00:50,040
Speaker 1: able to get to every single one of those. I do.

13
00:00:50,080 --> 00:00:51,159
Speaker 1: I wish we could get to all of them. I

14
00:00:51,200 --> 00:00:52,720
Speaker 1: feel like we get to to a big chunk of

15
00:00:52,800 --> 00:00:54,560
Speaker 1: we get to most of them, but yeah, I can't

16
00:00:54,600 --> 00:00:56,120
Speaker 1: get every single one. I will say, did you ever

17
00:00:56,160 --> 00:00:58,120
Speaker 1: have a pinpal? Though? Before you move on as a

18
00:00:58,280 --> 00:00:59,960
Speaker 1: as a kid, think a elementary school, Maybe there were

19
00:01:00,040 --> 00:01:04,520
Speaker 1: some sort of what I feel like there's everything these days.

20
00:01:04,600 --> 00:01:07,000
Speaker 1: I don't even know, although although we actually do. One

21
00:01:07,000 --> 00:01:10,360
Speaker 1: of the nonprofits we support is helping a family in

22
00:01:10,440 --> 00:01:12,560
Speaker 1: South America, and we do have like a pen pal reladership.

23
00:01:12,760 --> 00:01:14,840
Speaker 1: You write letters, which is really cool for the girls

24
00:01:14,880 --> 00:01:16,800
Speaker 1: to experience. I like, I love that. All right, Sorry,

25
00:01:16,800 --> 00:01:18,480
Speaker 1: I didn't want to You're going to see something. I

26
00:01:18,600 --> 00:01:20,240
Speaker 1: was just gonna say that. One of one of our

27
00:01:20,280 --> 00:01:23,160
Speaker 1: mutual friends, he texted me after our last Listener Questions

28
00:01:23,200 --> 00:01:25,800
Speaker 1: episode and he said, I was so impressed by the

29
00:01:26,000 --> 00:01:29,040
Speaker 1: variety of people that reach out to the shows, just

30
00:01:29,160 --> 00:01:31,240
Speaker 1: that they are all different ages, they live in all

31
00:01:31,280 --> 00:01:33,680
Speaker 1: sorts of different parts of the country, and I was

32
00:01:33,760 --> 00:01:35,560
Speaker 1: I had to like sit back and think, like, yeah,

33
00:01:36,200 --> 00:01:39,679
Speaker 1: the our listeners are from all sorts of different walks

34
00:01:39,720 --> 00:01:42,000
Speaker 1: of life, and some live in New York City and

35
00:01:42,080 --> 00:01:45,560
Speaker 1: some live in like this, New Mexico, New Mexico, and

36
00:01:45,680 --> 00:01:49,200
Speaker 1: some live in Australia or Ireland whatever, and it is

37
00:01:49,400 --> 00:01:51,320
Speaker 1: it is just very cool. It is cool to see

38
00:01:51,480 --> 00:01:53,920
Speaker 1: that there are people from all over with all sorts

39
00:01:53,960 --> 00:01:58,080
Speaker 1: of different questions that they've got going on around their money. Yeah.

40
00:01:58,160 --> 00:02:00,200
Speaker 1: So on that note, some of the question is we're

41
00:02:00,200 --> 00:02:03,160
Speaker 1: gonna answer today pertain to stut loans. A listener has

42
00:02:03,200 --> 00:02:06,160
Speaker 1: a question about investing money for a wedding, as well

43
00:02:06,240 --> 00:02:10,359
Speaker 1: as another listener who's talking about some money saving baby hacks,

44
00:02:10,880 --> 00:02:13,320
Speaker 1: just different ways even as partner can save when it

45
00:02:13,360 --> 00:02:15,959
Speaker 1: comes to the cost of raising a kid. So, speaking

46
00:02:16,000 --> 00:02:18,359
Speaker 1: of variety, we almost have the entire life cycle of

47
00:02:18,639 --> 00:02:21,560
Speaker 1: the early adults. But I'm looking forward to those questions

48
00:02:21,680 --> 00:02:24,880
Speaker 1: plus a few others during this episode. Okay, well before

49
00:02:24,960 --> 00:02:26,760
Speaker 1: we get to those questions, we get to them just

50
00:02:26,880 --> 00:02:29,560
Speaker 1: as I get Matt. I wanted to mention probably one

51
00:02:29,560 --> 00:02:32,440
Speaker 1: of my biggest frustrations, um when it comes to the

52
00:02:32,520 --> 00:02:36,320
Speaker 1: Internet is when you're trying to cancel a subscription and

53
00:02:36,919 --> 00:02:38,600
Speaker 1: some people make it easy. It can be annoying, which

54
00:02:38,600 --> 00:02:42,560
Speaker 1: I appreciate the like or easy unsubscribed link in an email.

55
00:02:42,560 --> 00:02:45,160
Speaker 1: I always appreciate that those are nice. The worst are

56
00:02:45,280 --> 00:02:48,200
Speaker 1: when they send you another email to confirm that you do,

57
00:02:48,280 --> 00:02:51,280
Speaker 1: in fact want to unsubscribe from Sure, and you're like, yes, yes,

58
00:02:51,360 --> 00:02:54,240
Speaker 1: I'm sure. Don't ask me again exactly. Well, the other

59
00:02:54,320 --> 00:02:58,320
Speaker 1: day I was unsubscribing from a publication that you and

60
00:02:58,400 --> 00:03:01,040
Speaker 1: I sometimes read. We found we were not reading it

61
00:03:01,120 --> 00:03:03,400
Speaker 1: frequently enough and the monthly practice was like thirty five

62
00:03:03,440 --> 00:03:05,480
Speaker 1: dollars and we're like, yeah, I don't think we're getting

63
00:03:05,800 --> 00:03:08,120
Speaker 1: that amount of value out of it. So let's act it.

64
00:03:08,440 --> 00:03:10,160
Speaker 1: And then they were like, well, wait a second. I

65
00:03:10,200 --> 00:03:12,040
Speaker 1: know we made a really easy to sign up, but

66
00:03:12,080 --> 00:03:14,320
Speaker 1: it's not gonna be so simple when it comes to canceling,

67
00:03:14,639 --> 00:03:16,519
Speaker 1: And so that was annoying to me. I had to

68
00:03:16,560 --> 00:03:18,959
Speaker 1: jump through extra hurdles, actually had to like talk to

69
00:03:19,080 --> 00:03:21,800
Speaker 1: someone via some chat at least it wasn't on the phone.

70
00:03:21,840 --> 00:03:24,160
Speaker 1: That is the ultimate worst one. They're like, now called

71
00:03:24,200 --> 00:03:26,280
Speaker 1: this number, and you're like, I was able to sign

72
00:03:26,360 --> 00:03:28,120
Speaker 1: up online. Why can't I do the exact same thing

73
00:03:28,480 --> 00:03:31,440
Speaker 1: when I'm canceling. Um, So, yeah, I just wanted to

74
00:03:31,720 --> 00:03:33,240
Speaker 1: note that as a general pet peeve, and I think

75
00:03:33,240 --> 00:03:36,920
Speaker 1: companies out there, if you value the people that subscribe

76
00:03:36,920 --> 00:03:39,119
Speaker 1: to you, you're not doing yourself any favors by making

77
00:03:39,160 --> 00:03:41,720
Speaker 1: it harder on them to cancel. You're just creating stronger

78
00:03:41,840 --> 00:03:44,400
Speaker 1: enemies I think when they when they do eventually cancel.

79
00:03:44,720 --> 00:03:45,880
Speaker 1: I mean the same thing is true when it comes

80
00:03:45,880 --> 00:03:48,280
Speaker 1: to credit cards. Actually recently canceled a credit card. And

81
00:03:48,680 --> 00:03:50,840
Speaker 1: you sign up for a credit card online only like

82
00:03:50,920 --> 00:03:52,920
Speaker 1: you feel out the application and within like you know,

83
00:03:53,360 --> 00:03:56,720
Speaker 1: like a minute, you are either approved or not approved.

84
00:03:57,000 --> 00:03:59,600
Speaker 1: But yeah, I recently canceled a card and you gotta

85
00:03:59,640 --> 00:04:01,600
Speaker 1: hop on the phone. I think there's I can only

86
00:04:01,600 --> 00:04:03,800
Speaker 1: think of a single credit card where I was able

87
00:04:03,840 --> 00:04:07,360
Speaker 1: to actually close that account online. Everybody else you always

88
00:04:07,600 --> 00:04:09,520
Speaker 1: have to make that phone call. Super annoying, but I'm

89
00:04:09,560 --> 00:04:11,280
Speaker 1: glad you got that sorted out. There was Is that

90
00:04:11,400 --> 00:04:14,440
Speaker 1: the company card he's attached to that subscription? Yes, so

91
00:04:14,680 --> 00:04:16,840
Speaker 1: now we're not being built for that anymore. But there

92
00:04:16,880 --> 00:04:18,960
Speaker 1: was this great SNL skit. I don't really watch SNL,

93
00:04:19,000 --> 00:04:21,200
Speaker 1: but I randomly stumbled upon this one. And it was

94
00:04:21,480 --> 00:04:25,280
Speaker 1: Kieran Coulkin, who's in the hit show Succession, and he

95
00:04:25,360 --> 00:04:27,600
Speaker 1: was like him trying to cancel his cable subscription and

96
00:04:27,640 --> 00:04:29,320
Speaker 1: they're like, yes, but tell me why. And he's like,

97
00:04:29,360 --> 00:04:31,320
Speaker 1: because I broke up with my girlfriend and I'm and

98
00:04:31,400 --> 00:04:33,760
Speaker 1: they're like, but please tell me how the breakup precipitated,

99
00:04:33,800 --> 00:04:36,000
Speaker 1: and like doing all these things, and it's it's true.

100
00:04:36,080 --> 00:04:38,480
Speaker 1: It's like obviously an exaggeration, but that's exactly what happens

101
00:04:38,480 --> 00:04:41,120
Speaker 1: when you try to cancel cable or internet or something too.

102
00:04:41,279 --> 00:04:43,039
Speaker 1: It feels like that they want to get all up

103
00:04:43,040 --> 00:04:45,400
Speaker 1: in your business. But uh, well, we'll link to that

104
00:04:45,480 --> 00:04:47,880
Speaker 1: skit in the show notes. I guess watch in a while, can't.

105
00:04:47,880 --> 00:04:49,840
Speaker 1: I used to watch it religiously, but it's been a

106
00:04:49,880 --> 00:04:52,080
Speaker 1: couple of seasons now since we've tuned in, it's just

107
00:04:52,160 --> 00:04:55,000
Speaker 1: not as funny anymore. All right, let's introduce the beer

108
00:04:55,080 --> 00:04:57,280
Speaker 1: you and I are enjoying this episode. It's called Hatch

109
00:04:57,400 --> 00:05:01,239
Speaker 1: Me Outside. This is a hatch Hlie Pepper Blonde Dale

110
00:05:01,640 --> 00:05:05,479
Speaker 1: by Cross Town Brewing Company. You showed up with this one, uh,

111
00:05:05,560 --> 00:05:07,799
Speaker 1: and so I'm looking forward to enjoying it and sharing

112
00:05:07,839 --> 00:05:09,599
Speaker 1: our thoughts on this one at the end of the episode.

113
00:05:09,680 --> 00:05:12,200
Speaker 1: How this was I brought back from my most recent

114
00:05:12,279 --> 00:05:14,800
Speaker 1: trip to Memphis. My brother in law hooked me up

115
00:05:14,839 --> 00:05:17,839
Speaker 1: with some Memphis bears while I was so figured I share.

116
00:05:17,960 --> 00:05:20,400
Speaker 1: All right, Well, well, let's get to the topic of hammout.

117
00:05:20,440 --> 00:05:23,680
Speaker 1: We are answering listener questions and for anybody listening, if

118
00:05:23,720 --> 00:05:26,480
Speaker 1: you want us to answer your question on an upcoming episode,

119
00:05:26,560 --> 00:05:28,120
Speaker 1: we'd love to hear it. Just go to how to

120
00:05:28,160 --> 00:05:31,160
Speaker 1: money dot com slash ask. There are simple instructions there

121
00:05:31,200 --> 00:05:33,560
Speaker 1: for you to submit your audio questions so we can

122
00:05:33,640 --> 00:05:35,720
Speaker 1: take it on an upcoming episode. But let's get to

123
00:05:35,839 --> 00:05:39,200
Speaker 1: the first one. This one is about student loans. Hey,

124
00:05:39,360 --> 00:05:41,920
Speaker 1: Matt and Joel. This is Ian from Los Angeles. I've

125
00:05:41,920 --> 00:05:44,720
Speaker 1: been listening since the early days and I really appreciate

126
00:05:44,760 --> 00:05:47,880
Speaker 1: your guys point of view and plane speaking. I just

127
00:05:48,000 --> 00:05:50,240
Speaker 1: started a job with a one percent matching four oh

128
00:05:50,320 --> 00:05:53,320
Speaker 1: one K, but I've been investing in Acorns for about

129
00:05:53,400 --> 00:05:56,159
Speaker 1: three years now. On my own, I still have student

130
00:05:56,240 --> 00:06:01,440
Speaker 1: loan debt the highest is at three no credit card debt. However,

131
00:06:01,560 --> 00:06:05,200
Speaker 1: with payments and interests starting again in two, wondering if

132
00:06:05,240 --> 00:06:07,760
Speaker 1: I should close out my Acorns account and put the

133
00:06:07,800 --> 00:06:11,080
Speaker 1: balance towards ending my student loan debt. The balance is

134
00:06:11,160 --> 00:06:13,920
Speaker 1: just about the same as my Acorns account. I'm currently

135
00:06:13,960 --> 00:06:17,360
Speaker 1: on track to eliminate the debt anyway in summer two,

136
00:06:17,720 --> 00:06:20,159
Speaker 1: but I'd really not like to pay any interest if

137
00:06:20,200 --> 00:06:23,360
Speaker 1: I can. Does this plan make sense? And if so,

138
00:06:23,560 --> 00:06:27,320
Speaker 1: what tax implications could I be uh in for? Thanks

139
00:06:27,360 --> 00:06:29,520
Speaker 1: as always for your help, guys, and if you're ever

140
00:06:29,600 --> 00:06:32,240
Speaker 1: out in l A, give me a holler. Ian thanks

141
00:06:32,279 --> 00:06:34,240
Speaker 1: for your question, and Matt, it would be nice to

142
00:06:34,279 --> 00:06:35,760
Speaker 1: get back to l A at some point, wouldn't it.

143
00:06:35,800 --> 00:06:38,200
Speaker 1: Oh yeah, we we took it. Your brother was a

144
00:06:38,200 --> 00:06:40,080
Speaker 1: couple of years or three years ago. I got a

145
00:06:40,160 --> 00:06:42,760
Speaker 1: chance to hit up Modern Times and oh my gosh,

146
00:06:42,839 --> 00:06:48,039
Speaker 1: what was that was Monkish? Very good beer, delightful place

147
00:06:48,040 --> 00:06:49,920
Speaker 1: to get here. So yeah, Ian, we will will let

148
00:06:50,040 --> 00:06:52,480
Speaker 1: listeners know next time we're in Los Angeles and give

149
00:06:52,560 --> 00:06:55,080
Speaker 1: us hang out together at a local brewery. Totally. And

150
00:06:55,120 --> 00:06:56,960
Speaker 1: I guess one of the things that that Ian said

151
00:06:57,080 --> 00:07:00,760
Speaker 1: was one per cent wasting horror that stuck out to

152
00:07:00,800 --> 00:07:04,000
Speaker 1: me as abysmal and uh not not not a not

153
00:07:04,080 --> 00:07:07,360
Speaker 1: a smart move on that company, because there are I

154
00:07:07,400 --> 00:07:09,640
Speaker 1: don't know, especially in the current job market, there are

155
00:07:09,680 --> 00:07:14,640
Speaker 1: a lot of employees who are looking around, considering other options,

156
00:07:15,040 --> 00:07:19,000
Speaker 1: and something what's maybe to that employer seems small, like yeah,

157
00:07:19,080 --> 00:07:21,760
Speaker 1: one percent match, we'll we'll do that. That's not enough

158
00:07:22,000 --> 00:07:24,720
Speaker 1: to retain top tier talent. And so I could see

159
00:07:24,720 --> 00:07:27,559
Speaker 1: Ian at some point saying like, let me like scour

160
00:07:27,720 --> 00:07:30,280
Speaker 1: the job boards and see if there's something maybe I

161
00:07:30,320 --> 00:07:33,400
Speaker 1: can increase my pay and have better benefits on on

162
00:07:33,480 --> 00:07:36,040
Speaker 1: the back end. I think talented folks really view that

163
00:07:36,160 --> 00:07:40,760
Speaker 1: as a meaningful benefit, and uh yeah, companies should act accordingly. Yeah,

164
00:07:40,800 --> 00:07:43,480
Speaker 1: not only talented folks, but just in foreign folks, because

165
00:07:43,520 --> 00:07:46,440
Speaker 1: I think it used to be when pensions were a

166
00:07:46,520 --> 00:07:51,160
Speaker 1: thing and before, for one K matching was widespread, maybe

167
00:07:51,200 --> 00:07:53,320
Speaker 1: one percent would have been fine. But as folks are

168
00:07:53,320 --> 00:07:56,760
Speaker 1: becoming more educated, as we talk more about our finances

169
00:07:56,800 --> 00:07:58,400
Speaker 1: here on the show, and as folks talk about them

170
00:07:58,480 --> 00:08:01,280
Speaker 1: more in their own lives, I think gets them familiar

171
00:08:01,520 --> 00:08:03,560
Speaker 1: with the topic. It gets them more comfortable talking about

172
00:08:03,600 --> 00:08:05,720
Speaker 1: it because in the end, what it oftentimes is gonna

173
00:08:05,720 --> 00:08:08,000
Speaker 1: come down to, it's either finding a new job, but

174
00:08:08,240 --> 00:08:11,480
Speaker 1: asking their boss for increased benefits. And what that means

175
00:08:11,680 --> 00:08:13,760
Speaker 1: is it coming down to you as an individual having

176
00:08:13,800 --> 00:08:15,560
Speaker 1: that conversation. So I think it can be helpful just

177
00:08:15,920 --> 00:08:17,880
Speaker 1: you know, talking about this in your real life, talking

178
00:08:17,920 --> 00:08:19,640
Speaker 1: about this with your friends. This is one of those

179
00:08:19,680 --> 00:08:22,400
Speaker 1: conversations where yes, you definitely can figure out some of

180
00:08:22,400 --> 00:08:24,880
Speaker 1: the information on a site like glass door, where you've

181
00:08:24,920 --> 00:08:27,120
Speaker 1: got the you know, the benefits listed out, but even

182
00:08:27,200 --> 00:08:30,160
Speaker 1: just being comfortable talking about it on a personal level,

183
00:08:30,240 --> 00:08:32,240
Speaker 1: I guess. But Ian, let's go ahead, get to the

184
00:08:32,480 --> 00:08:34,599
Speaker 1: heart of your question. Should you be paying off the

185
00:08:34,640 --> 00:08:37,640
Speaker 1: student loans more quickly? And you know the t l

186
00:08:37,679 --> 00:08:41,000
Speaker 1: d R is nope, which means don't do it too long?

187
00:08:41,360 --> 00:08:43,719
Speaker 1: Didn't read? Is that what I mean? Too long? Didn't read? Uh?

188
00:08:44,040 --> 00:08:46,320
Speaker 1: So you know, we get the desire to avoid paying interest,

189
00:08:46,640 --> 00:08:48,559
Speaker 1: but if the highest rate on those student loans is

190
00:08:48,600 --> 00:08:51,040
Speaker 1: still sub four percent, then there are better places to

191
00:08:51,240 --> 00:08:54,600
Speaker 1: be putting those dollars, especially given where things stand with inflation.

192
00:08:54,760 --> 00:08:57,079
Speaker 1: At the current moment, your student loan interest rate is

193
00:08:57,080 --> 00:08:59,840
Speaker 1: actually looking pretty good. Having debt is never a good thing,

194
00:09:00,040 --> 00:09:03,280
Speaker 1: but when you're when you are comparing UH debt interest rates,

195
00:09:03,520 --> 00:09:06,120
Speaker 1: what you currently have isn't terrible. And then Ian, you know,

196
00:09:06,200 --> 00:09:09,160
Speaker 1: you mentioned tax implications as well. If your money is

197
00:09:09,280 --> 00:09:13,120
Speaker 1: in the standard Acorns invest accounts, it's basically a brokerage account,

198
00:09:13,400 --> 00:09:15,839
Speaker 1: so you'll be paying tax on the gains that you

199
00:09:15,920 --> 00:09:19,280
Speaker 1: pull out from your account, although probably at the favorable

200
00:09:19,360 --> 00:09:21,439
Speaker 1: capital gains tax rate since it sounds like you have

201
00:09:21,880 --> 00:09:24,400
Speaker 1: had this count around for a long time. But that's

202
00:09:24,440 --> 00:09:26,800
Speaker 1: something to keep in mind. You will be paying tax

203
00:09:26,920 --> 00:09:29,000
Speaker 1: on money that you pull out. Yeah, and Matt, what

204
00:09:29,200 --> 00:09:31,600
Speaker 1: you said was, hey, it's a really low interest rate,

205
00:09:31,760 --> 00:09:34,880
Speaker 1: and that means you shouldn't prioritize paying off the student

206
00:09:34,920 --> 00:09:37,520
Speaker 1: loan more quickly than you need to, especially because inflation

207
00:09:37,640 --> 00:09:40,360
Speaker 1: is so high. And I think that's a great point

208
00:09:40,440 --> 00:09:43,559
Speaker 1: because we would prefer for Ian instead to focus on

209
00:09:43,720 --> 00:09:47,000
Speaker 1: growing his money while paying off that low interest rate debt,

210
00:09:47,200 --> 00:09:50,240
Speaker 1: as agreed, and especially since it sounds like he's going

211
00:09:50,320 --> 00:09:52,040
Speaker 1: to be able to get rid of it either way

212
00:09:52,280 --> 00:09:55,800
Speaker 1: in short order. And just give a little personal story here.

213
00:09:55,840 --> 00:09:59,079
Speaker 1: When I first started learning about personal finance, I got

214
00:09:59,559 --> 00:10:02,160
Speaker 1: maybe a little too fixated on my student loans. I

215
00:10:02,280 --> 00:10:04,760
Speaker 1: had not a whole lot of student loan debt, something

216
00:10:05,040 --> 00:10:08,120
Speaker 1: along the lines of like twelve grand. And I remember,

217
00:10:08,320 --> 00:10:10,400
Speaker 1: at one point, as I was starting to earn money

218
00:10:10,480 --> 00:10:13,040
Speaker 1: and like my first real job, putting a big chunk

219
00:10:13,400 --> 00:10:15,360
Speaker 1: or for me, what was a huge chunk at that point,

220
00:10:15,400 --> 00:10:18,760
Speaker 1: two thousand dollars towards those loans, and I thought I

221
00:10:18,880 --> 00:10:20,480
Speaker 1: was doing the right thing. I was like, this is great,

222
00:10:20,880 --> 00:10:23,880
Speaker 1: but debt is dumb. That was the mantra of a

223
00:10:23,960 --> 00:10:26,319
Speaker 1: lot of people. Do everything possible to make sure that

224
00:10:26,400 --> 00:10:28,679
Speaker 1: you eliminate all debt from your life exactly. And and

225
00:10:28,800 --> 00:10:31,480
Speaker 1: so my answerest right though, was even better. I think

226
00:10:31,520 --> 00:10:34,320
Speaker 1: mine was like one point seven cents. I always got

227
00:10:34,400 --> 00:10:36,200
Speaker 1: like a student loans in the heyday of student loans,

228
00:10:36,240 --> 00:10:39,800
Speaker 1: and so that that is almost free money. And obviously

229
00:10:39,880 --> 00:10:42,000
Speaker 1: it's two thousand bucks. It's paying off debt, like it

230
00:10:42,080 --> 00:10:44,559
Speaker 1: wasn't a fatal move, Like it didn't wreck any of

231
00:10:44,679 --> 00:10:47,560
Speaker 1: my financial goals. It's just one of these tiny mistakes

232
00:10:47,600 --> 00:10:49,280
Speaker 1: that I made along the way, and I would have

233
00:10:49,320 --> 00:10:51,480
Speaker 1: been better served to get that money into a roth

234
00:10:51,559 --> 00:10:53,640
Speaker 1: ira because at that point I was not maxing out

235
00:10:53,720 --> 00:10:55,640
Speaker 1: my roth ira. I just didn't didn't have enough income,

236
00:10:55,640 --> 00:10:58,520
Speaker 1: and so I should have prioritized that instead. And that's

237
00:10:58,559 --> 00:11:00,400
Speaker 1: kind of where I want to point Ian. It's like, hey,

238
00:11:00,760 --> 00:11:02,760
Speaker 1: it's it's not a bad idea to pay off this

239
00:11:02,840 --> 00:11:04,880
Speaker 1: tep more quickly, But for me, that's one of those

240
00:11:04,880 --> 00:11:06,520
Speaker 1: tiny things I remember doing and I'm like, man, I

241
00:11:06,520 --> 00:11:08,880
Speaker 1: could have done better. Yeah, you could have definitely earned

242
00:11:09,080 --> 00:11:11,839
Speaker 1: especially to during the time period where when I know

243
00:11:12,000 --> 00:11:14,679
Speaker 1: that you put down that two thousand dollar chunk, had

244
00:11:14,720 --> 00:11:17,079
Speaker 1: you invested that money instead, it would have done much

245
00:11:17,120 --> 00:11:19,280
Speaker 1: better for you than one point six seven or whatever

246
00:11:19,360 --> 00:11:20,960
Speaker 1: it was literally like thirteen years ago, like right at

247
00:11:20,960 --> 00:11:22,800
Speaker 1: the start of the bull market. So yeah, but bad

248
00:11:22,880 --> 00:11:25,120
Speaker 1: timing to pay off a lesson two percent. Yeah. So,

249
00:11:25,480 --> 00:11:27,000
Speaker 1: and you know that's what we want to see you

250
00:11:27,080 --> 00:11:29,719
Speaker 1: focus on with those extra dollars. We'd recommend for you

251
00:11:29,760 --> 00:11:31,800
Speaker 1: to take a look at our money gears. We'll link

252
00:11:31,840 --> 00:11:33,360
Speaker 1: to them in the show notes. But we've come up

253
00:11:33,400 --> 00:11:36,400
Speaker 1: with seven money gears, which are basically like a money

254
00:11:36,520 --> 00:11:39,400
Speaker 1: order of operations, and low interest debt doesn't become a

255
00:11:39,440 --> 00:11:42,640
Speaker 1: priority until gear six and so they're just a lot

256
00:11:42,679 --> 00:11:45,760
Speaker 1: of other financial priorities that you'll want to pursue with

257
00:11:46,200 --> 00:11:48,800
Speaker 1: vigor first. Uh So, keep that money where it is,

258
00:11:49,080 --> 00:11:51,160
Speaker 1: don't pull that money out of your Acorns account to

259
00:11:51,240 --> 00:11:53,520
Speaker 1: pay off your student loans. And we also, you know,

260
00:11:53,760 --> 00:11:56,000
Speaker 1: we mentioned the Acorns invest account. We we hope that

261
00:11:56,120 --> 00:11:59,199
Speaker 1: this money is actually in the Acorns later rath i

262
00:11:59,360 --> 00:12:02,079
Speaker 1: ra ah. If not, we would recommend that you open

263
00:12:02,200 --> 00:12:04,920
Speaker 1: up a roth ira uh and make that you're number

264
00:12:04,960 --> 00:12:08,280
Speaker 1: one investing account priority. After getting that FO one K

265
00:12:08,520 --> 00:12:11,559
Speaker 1: match a paltry match, Yeah, hey, one percent, you know,

266
00:12:11,760 --> 00:12:14,959
Speaker 1: not nothing he's makings, you know, seventy thousand dollars. You know,

267
00:12:15,000 --> 00:12:17,079
Speaker 1: if he's getting a one percent match of seven hundred

268
00:12:17,080 --> 00:12:19,959
Speaker 1: dollars a year from his employer, I'll take that. That's

269
00:12:19,960 --> 00:12:23,120
Speaker 1: that's still still hundreds of dollars. Uh. And and you know,

270
00:12:23,160 --> 00:12:25,679
Speaker 1: like you mentioned jelfortunately, his student loan debt should be

271
00:12:25,760 --> 00:12:27,839
Speaker 1: gone pretty quickly. He's talking about having it paid off

272
00:12:27,840 --> 00:12:30,120
Speaker 1: by the end of the year, and so I wouldn't

273
00:12:30,160 --> 00:12:32,199
Speaker 1: stress too much about this. Even yeah, it sounds like

274
00:12:32,240 --> 00:12:35,480
Speaker 1: it's not gonna linger indefinitely or for ten plus years

275
00:12:35,559 --> 00:12:37,640
Speaker 1: or more. It's gonna be gone in short order anyway.

276
00:12:37,840 --> 00:12:39,199
Speaker 1: And so this is really just kind of like a

277
00:12:39,280 --> 00:12:42,640
Speaker 1: short term optimization tactic that we're talking about. I think

278
00:12:42,640 --> 00:12:44,600
Speaker 1: it's it's worth mentioning to Matt that you know, our

279
00:12:44,640 --> 00:12:49,120
Speaker 1: money gears make most sense from a purely financial standpoint, right,

280
00:12:49,160 --> 00:12:51,280
Speaker 1: It's like, here's how the math works, and here's what

281
00:12:51,400 --> 00:12:53,400
Speaker 1: we think if you want to mathematically do the very

282
00:12:53,520 --> 00:12:56,360
Speaker 1: best correct thing money gears. Yes, you don't pay off

283
00:12:56,360 --> 00:12:58,559
Speaker 1: a three percent debt. You instead invest to get a

284
00:12:58,640 --> 00:13:02,120
Speaker 1: tax break and you know, start earning hopefully higher returns

285
00:13:02,200 --> 00:13:04,760
Speaker 1: than that um. But that's really if you're only looking

286
00:13:04,760 --> 00:13:06,640
Speaker 1: at the numbers. And we we do want to acknowledge,

287
00:13:06,960 --> 00:13:09,920
Speaker 1: at least for Ian and for others, that sometimes we

288
00:13:10,240 --> 00:13:12,559
Speaker 1: Matt and I included, make moves with our money that

289
00:13:12,640 --> 00:13:16,160
Speaker 1: may not be the most optimized from an accounting perspective.

290
00:13:16,600 --> 00:13:19,880
Speaker 1: Sometimes it's just trying to give us give ourselves a

291
00:13:19,920 --> 00:13:23,640
Speaker 1: psychological benefit. And so, yeah, even though it might not

292
00:13:23,800 --> 00:13:27,079
Speaker 1: be the mathematically best move. Paying off debt with a

293
00:13:27,160 --> 00:13:29,600
Speaker 1: low interest rate could make sense if that means you're

294
00:13:29,600 --> 00:13:31,720
Speaker 1: going to be able to stick with your financial plan,

295
00:13:31,960 --> 00:13:34,839
Speaker 1: if it's gonna give you the encouragement that's needed to

296
00:13:34,960 --> 00:13:37,599
Speaker 1: kind of keep moving forward in those other areas that

297
00:13:37,640 --> 00:13:40,400
Speaker 1: you're pursuing when it comes to your finances, um and

298
00:13:40,480 --> 00:13:42,360
Speaker 1: if it's also going to relieve some of that stress

299
00:13:42,640 --> 00:13:44,600
Speaker 1: for you at the same time, if it's gonna make

300
00:13:44,679 --> 00:13:48,520
Speaker 1: you able more able to sleep better at night, I

301
00:13:48,559 --> 00:13:51,280
Speaker 1: would say that is another reason that it might make

302
00:13:51,320 --> 00:13:53,200
Speaker 1: sense to pay off debt, even if the numbers don't

303
00:13:53,240 --> 00:13:55,800
Speaker 1: necessarily dictate that's the best move to make. Exactly. That's

304
00:13:55,840 --> 00:13:58,199
Speaker 1: why we are okay if an individual wants to pay

305
00:13:58,240 --> 00:14:00,800
Speaker 1: off their house early. We don't think gets the We

306
00:14:00,840 --> 00:14:02,800
Speaker 1: don't think it's the best thing from a financial standpoint,

307
00:14:02,800 --> 00:14:04,240
Speaker 1: and we're not going to do it. But hey, exactly

308
00:14:04,280 --> 00:14:06,800
Speaker 1: we're not gonna do it. But if for you, you

309
00:14:07,160 --> 00:14:08,880
Speaker 1: are always going to be able to sleep better at night,

310
00:14:08,920 --> 00:14:11,160
Speaker 1: if you know that, you know what, at least we've

311
00:14:11,200 --> 00:14:13,720
Speaker 1: got this home, we've got this roof over our heads.

312
00:14:14,280 --> 00:14:16,280
Speaker 1: We are okay with that. We just want to make

313
00:14:16,320 --> 00:14:19,400
Speaker 1: sure that you can make that decision from a place

314
00:14:19,440 --> 00:14:21,600
Speaker 1: of understanding. We want you to have the knowledge that

315
00:14:21,760 --> 00:14:24,560
Speaker 1: that isn't necessarily the best thing for you based on

316
00:14:24,960 --> 00:14:28,200
Speaker 1: what the stock market has returned over the past forty six,

317
00:14:28,560 --> 00:14:30,560
Speaker 1: you know, eighty years. Yeah for sure. All right, mat

318
00:14:30,680 --> 00:14:32,960
Speaker 1: We got more questions to get to, including one about

319
00:14:33,000 --> 00:14:36,360
Speaker 1: rental properties into appreciating that rental property, should they do

320
00:14:36,480 --> 00:14:38,240
Speaker 1: it or not? We'll we'll get to that and more

321
00:14:38,440 --> 00:14:49,880
Speaker 1: right after this. Right we are back. This is a

322
00:14:50,040 --> 00:14:53,160
Speaker 1: listener question Monday episode for you. And before we get

323
00:14:53,240 --> 00:14:57,400
Speaker 1: to that investment property question, let's take a question from

324
00:14:57,440 --> 00:15:00,120
Speaker 1: a listener who is asking about investing money for or

325
00:15:00,160 --> 00:15:03,960
Speaker 1: her wedding. Hey, Joelan Matt, this is Kristen from Forrest, Virginia,

326
00:15:04,040 --> 00:15:07,120
Speaker 1: and I just had a short term investing question. I

327
00:15:07,560 --> 00:15:12,480
Speaker 1: was recently provided the lump sum for a future wedding

328
00:15:13,200 --> 00:15:18,720
Speaker 1: from my parents, and I am not currently anywhere near

329
00:15:18,880 --> 00:15:22,400
Speaker 1: getting married, so I wanted to try to invest that

330
00:15:22,480 --> 00:15:25,160
Speaker 1: money so that when I do get married, I have

331
00:15:25,320 --> 00:15:29,800
Speaker 1: it easily accessible and hopefully have grown a profit. So

332
00:15:30,000 --> 00:15:31,920
Speaker 1: I just wanted to get some advice on how best

333
00:15:32,040 --> 00:15:37,920
Speaker 1: to invest. I am currently maxing out my roth IRA

334
00:15:38,520 --> 00:15:42,000
Speaker 1: and I am contributing a decent amount to my for

335
00:15:42,240 --> 00:15:45,400
Speaker 1: one K. Any help that you guys can provide would

336
00:15:45,400 --> 00:15:48,080
Speaker 1: be greatly appreciated. All right, Christen, thanks so much for

337
00:15:48,120 --> 00:15:50,480
Speaker 1: that question. And that is super nice of your parents,

338
00:15:50,520 --> 00:15:52,360
Speaker 1: you know. I don't know if they were trying to

339
00:15:52,760 --> 00:15:56,520
Speaker 1: incentivize you to get someone to seal the deal, but

340
00:15:56,680 --> 00:15:58,680
Speaker 1: they're like, here's a chunk of money. Do you want

341
00:15:58,720 --> 00:16:01,680
Speaker 1: to get married sometime soon? That overly suggestive. I don't

342
00:16:01,680 --> 00:16:04,640
Speaker 1: know either way. It's incredibly nice and kind and generous

343
00:16:04,680 --> 00:16:07,120
Speaker 1: of them. But a side note, you know, if parents

344
00:16:07,320 --> 00:16:09,600
Speaker 1: want to give their children money, it can be helpful

345
00:16:09,680 --> 00:16:12,400
Speaker 1: to give little bits here and there while you're alive

346
00:16:12,440 --> 00:16:15,120
Speaker 1: instead of waiting until you die. For one, you get

347
00:16:15,160 --> 00:16:17,280
Speaker 1: to see your children enjoy it now, which is super cool,

348
00:16:17,600 --> 00:16:19,680
Speaker 1: and you know, it's often most helpful for your kids

349
00:16:19,720 --> 00:16:22,120
Speaker 1: in those earlier years when they're first getting their financial

350
00:16:22,200 --> 00:16:25,080
Speaker 1: lives in order. Uh. And then lastly, kids don't have

351
00:16:25,120 --> 00:16:27,800
Speaker 1: to worry about paying taxes on the money that they're gifted,

352
00:16:27,880 --> 00:16:30,200
Speaker 1: and parents don't have to worry about taxes on the

353
00:16:30,280 --> 00:16:33,320
Speaker 1: money that they are gifting. Up to sixteen thousand dollars

354
00:16:33,360 --> 00:16:35,920
Speaker 1: this year. But even if they give beyond that parents

355
00:16:36,400 --> 00:16:38,960
Speaker 1: aren't likely going to have to pay taxes because of

356
00:16:39,040 --> 00:16:42,560
Speaker 1: the lifetime exclusion rule. But we're not gonna get into that.

357
00:16:42,560 --> 00:16:44,960
Speaker 1: Will say about for another question now that that's a

358
00:16:44,960 --> 00:16:48,160
Speaker 1: great point when you're giving money, like, doing it earlier

359
00:16:48,320 --> 00:16:50,240
Speaker 1: and more often, I think is a good way to

360
00:16:50,320 --> 00:16:52,520
Speaker 1: do this. And so, yeah, giving money to a child

361
00:16:52,560 --> 00:16:55,520
Speaker 1: who is going to be getting married to for specific

362
00:16:55,600 --> 00:16:58,320
Speaker 1: purposes like that too. Maybe a down payments for first

363
00:16:58,360 --> 00:16:59,920
Speaker 1: time home buyer. I think there's a lot of first

364
00:17:00,080 --> 00:17:02,880
Speaker 1: home buyers out there who might could use some assistance exactly,

365
00:17:03,000 --> 00:17:04,920
Speaker 1: or that first ribby and truck. I don't know, just

366
00:17:05,600 --> 00:17:10,840
Speaker 1: I'm just like, it's just in case my parents parents exactly.

367
00:17:11,320 --> 00:17:13,879
Speaker 1: So yeah, but let's talk about investing for a wedding

368
00:17:13,960 --> 00:17:16,040
Speaker 1: and whether that makes sense. Let's let's talk about timing

369
00:17:16,119 --> 00:17:19,080
Speaker 1: first map because obviously when we're when we're talking about investing,

370
00:17:19,400 --> 00:17:21,800
Speaker 1: timing is like one of the most important things that

371
00:17:21,840 --> 00:17:24,760
Speaker 1: we have to discuss, and so it's kind of tough

372
00:17:24,800 --> 00:17:26,720
Speaker 1: to know where to put this money because we don't

373
00:17:26,760 --> 00:17:29,879
Speaker 1: know what Kristen's timeline is. Love happens when it happens,

374
00:17:29,920 --> 00:17:32,040
Speaker 1: and you can't you can't force it. Uh, we don't

375
00:17:32,040 --> 00:17:35,000
Speaker 1: know that, mom and dad. You can't force him. And

376
00:17:35,320 --> 00:17:37,720
Speaker 1: so yeah, we we say like, it sounds like Christians

377
00:17:37,760 --> 00:17:41,080
Speaker 1: doing an incredible job investing for her long term future,

378
00:17:41,160 --> 00:17:44,840
Speaker 1: already maxing out that roth. She's just she's making really

379
00:17:44,880 --> 00:17:47,680
Speaker 1: smart money moves. So it seems to me that it

380
00:17:47,800 --> 00:17:49,720
Speaker 1: would be a great idea to stash this money in

381
00:17:49,760 --> 00:17:54,320
Speaker 1: a separate brokerage account to grow for Kristen's future wedding,

382
00:17:54,680 --> 00:17:59,560
Speaker 1: but probably in less risky funds, not putting it in stocks. Right,

383
00:17:59,760 --> 00:18:02,320
Speaker 1: you to experience growth from the market in the coming years,

384
00:18:02,560 --> 00:18:04,520
Speaker 1: but you don't watch your future wedding plans to get

385
00:18:04,800 --> 00:18:06,920
Speaker 1: massively downside. Let's say if the market takes a meeting.

386
00:18:06,960 --> 00:18:09,080
Speaker 1: Let's say Kristen meets someone tomorrow and it is a

387
00:18:09,119 --> 00:18:12,399
Speaker 1: whirlwind romance and they're getting married five months later. It's

388
00:18:12,440 --> 00:18:15,040
Speaker 1: one of those things where on that timeline you could

389
00:18:15,080 --> 00:18:17,800
Speaker 1: easily have less money in that account than you started with. Yeah,

390
00:18:17,840 --> 00:18:20,879
Speaker 1: that's true. You know, the stock markets general trajectory is

391
00:18:20,960 --> 00:18:23,800
Speaker 1: of course like up into the right, but it's always

392
00:18:23,880 --> 00:18:26,880
Speaker 1: possible that we see a correction and even a full

393
00:18:26,960 --> 00:18:29,280
Speaker 1: on bear market that ends up lasting for a few years.

394
00:18:29,359 --> 00:18:31,240
Speaker 1: That could be in the cards. Uh, and so it

395
00:18:31,240 --> 00:18:33,200
Speaker 1: would Yeah, it would suck to find the partner of

396
00:18:33,280 --> 00:18:35,920
Speaker 1: your dreams, be ready to tie the knot quickly, and

397
00:18:35,960 --> 00:18:38,919
Speaker 1: then see that your wedding fund balance has decreased over

398
00:18:38,960 --> 00:18:41,760
Speaker 1: the past year. So a great solution, we think our

399
00:18:41,920 --> 00:18:45,480
Speaker 1: target date funds. They provide a solid solution so that

400
00:18:45,640 --> 00:18:48,480
Speaker 1: you aren't too stock heavy. And so, Kristen, maybe for you,

401
00:18:48,760 --> 00:18:52,840
Speaker 1: maybe a twenty thirty target date fund might be might

402
00:18:52,880 --> 00:18:55,320
Speaker 1: be a good fund to put it in, honestly, And

403
00:18:55,400 --> 00:18:58,280
Speaker 1: that's not to say that, okay, by you, I am

404
00:18:58,359 --> 00:19:01,359
Speaker 1: going to get married. But the further outs that a

405
00:19:01,400 --> 00:19:04,200
Speaker 1: target date fund is, the more weighted it will be

406
00:19:04,320 --> 00:19:06,800
Speaker 1: towards stocks. And so if you want to go with

407
00:19:06,840 --> 00:19:08,760
Speaker 1: a fundless even more conservative, you could look to a

408
00:19:09,480 --> 00:19:13,080
Speaker 1: five fund, even a twenty fund UH will have more bonds,

409
00:19:13,119 --> 00:19:15,760
Speaker 1: it will be less volatile, but of course you're less

410
00:19:15,800 --> 00:19:17,879
Speaker 1: likely to see growth where you to put it in

411
00:19:17,920 --> 00:19:21,080
Speaker 1: an versus just kind of had the idea, what would

412
00:19:21,119 --> 00:19:23,960
Speaker 1: a target date fund look like? Would that be just

413
00:19:24,040 --> 00:19:26,720
Speaker 1: like all AI and bitcoin, I don't know, it would

414
00:19:26,760 --> 00:19:28,680
Speaker 1: be n f t s. It would be in things

415
00:19:28,760 --> 00:19:31,040
Speaker 1: that don't even exist yet. Yes, yeah, and well I

416
00:19:31,119 --> 00:19:33,800
Speaker 1: think one other suggestion worth pointing out to Christen too

417
00:19:34,359 --> 00:19:37,000
Speaker 1: is that I bonds could be a great spot for

418
00:19:37,200 --> 00:19:39,200
Speaker 1: for some of this money for the time being, for

419
00:19:39,359 --> 00:19:42,080
Speaker 1: ten grand of the money that you're holding onto Kristen,

420
00:19:42,160 --> 00:19:44,840
Speaker 1: because that is the limit every year of what you

421
00:19:44,960 --> 00:19:47,159
Speaker 1: can of how much in I bonds you are allowed

422
00:19:47,240 --> 00:19:50,240
Speaker 1: to buy. And we've been talking about these a lot,

423
00:19:50,720 --> 00:19:53,000
Speaker 1: but there are still a great place for your money

424
00:19:53,119 --> 00:19:55,600
Speaker 1: and for money that you don't need for at least

425
00:19:55,720 --> 00:19:58,040
Speaker 1: the next year. And that is because you cannot take

426
00:19:58,119 --> 00:20:01,080
Speaker 1: that money out within h all the months. And so yeah,

427
00:20:01,119 --> 00:20:03,280
Speaker 1: you'll be able to earn over seven percent right now

428
00:20:03,359 --> 00:20:06,480
Speaker 1: without taking on any risk that rate will change in

429
00:20:06,560 --> 00:20:09,200
Speaker 1: the in early summer. It could go down. Um, it's

430
00:20:09,240 --> 00:20:10,879
Speaker 1: not likely to go down a whole lot, but it

431
00:20:11,200 --> 00:20:13,720
Speaker 1: will probably go down just a little bit. But it's

432
00:20:13,800 --> 00:20:15,639
Speaker 1: going to make you more than you would earn in

433
00:20:15,720 --> 00:20:18,400
Speaker 1: just that savings accounts. So that target eight fund plus

434
00:20:18,480 --> 00:20:21,320
Speaker 1: the ibond approach together is probably this great tag team

435
00:20:21,400 --> 00:20:24,119
Speaker 1: strategy for for some of those wedding funds for for Kristen,

436
00:20:24,320 --> 00:20:27,040
Speaker 1: plus uh tying it up in an I bond, I

437
00:20:27,080 --> 00:20:28,800
Speaker 1: feel that feels just a little more optimistic from a

438
00:20:28,840 --> 00:20:30,680
Speaker 1: relational standard, it's just like, all right, you know what,

439
00:20:30,840 --> 00:20:32,680
Speaker 1: one year from now, there's a good chance that this

440
00:20:32,840 --> 00:20:35,600
Speaker 1: is gonna this, This might happen. So I like the

441
00:20:35,800 --> 00:20:38,760
Speaker 1: optimism that comes with an I bond as well as that. Kristen,

442
00:20:39,000 --> 00:20:41,400
Speaker 1: best of luck to you. And in love and Money,

443
00:20:42,840 --> 00:20:46,359
Speaker 1: isn't that the new four movie? I don't know, Loving Money, No,

444
00:20:46,720 --> 00:20:49,560
Speaker 1: it's loving Thunder. Okay, But all right, let's go ahead

445
00:20:49,560 --> 00:20:51,760
Speaker 1: and get to our next question. This one has to

446
00:20:51,920 --> 00:20:56,920
Speaker 1: do with appreciation on an investment property. Hey Manjel, this

447
00:20:57,040 --> 00:20:59,680
Speaker 1: has been from San Antonio. I was wondering your thoughts

448
00:20:59,720 --> 00:21:03,600
Speaker 1: on the benefit of depreciating rental property. I recently learned

449
00:21:03,600 --> 00:21:06,680
Speaker 1: about depreciation recapture and it made me question the long

450
00:21:06,800 --> 00:21:10,840
Speaker 1: term benefit of depreciating my property, especially for those who

451
00:21:11,240 --> 00:21:15,520
Speaker 1: are under the cap applied to depreciation recapture. If you're

452
00:21:15,520 --> 00:21:17,560
Speaker 1: ever in San Antonio, I recommend you check out back

453
00:21:17,600 --> 00:21:20,160
Speaker 1: on Turn Brewery. Not only do they have solid beer,

454
00:21:20,280 --> 00:21:22,320
Speaker 1: but they give back to the homeless community by serving

455
00:21:22,400 --> 00:21:25,399
Speaker 1: up some free pizza. Wow, Matt, that's that's definitely a

456
00:21:25,520 --> 00:21:28,560
Speaker 1: mission that we can get behind, right, beer, beer, then

457
00:21:28,600 --> 00:21:30,320
Speaker 1: free pizza to folks who were neat. I love it.

458
00:21:30,359 --> 00:21:32,240
Speaker 1: It's just beer and pizza in general. May that's like,

459
00:21:32,320 --> 00:21:35,000
Speaker 1: it's a good comment, tough to beat. Well, let's get

460
00:21:35,040 --> 00:21:37,440
Speaker 1: onto to Ben's question, even though I could stay in

461
00:21:37,480 --> 00:21:40,440
Speaker 1: this life right now. Uh, the depreciation that you get

462
00:21:40,480 --> 00:21:43,800
Speaker 1: to take advantage of as a real estate investor, is

463
00:21:43,840 --> 00:21:46,760
Speaker 1: this park that I think it's worth discussing more so,

464
00:21:47,320 --> 00:21:49,720
Speaker 1: we've we've always touted that as actually one of the

465
00:21:49,760 --> 00:21:52,680
Speaker 1: benefits of investing in real estate is that there are

466
00:21:52,960 --> 00:21:56,560
Speaker 1: tax implications for real estate investors that help your bottom line.

467
00:21:56,840 --> 00:21:58,879
Speaker 1: And how it works really is that the I R

468
00:21:59,000 --> 00:22:01,640
Speaker 1: S says that your property is losing value steadily over

469
00:22:01,720 --> 00:22:04,159
Speaker 1: twenty seven and a half years at the rate of,

470
00:22:04,400 --> 00:22:06,080
Speaker 1: if you want to get really nerdy, three point six

471
00:22:06,200 --> 00:22:09,040
Speaker 1: three six percent annually, and you get a tax break

472
00:22:09,040 --> 00:22:14,280
Speaker 1: accordingly because your hundred fifty dollar property is being devalued

473
00:22:14,400 --> 00:22:17,560
Speaker 1: every year by the government. The reality, however, is that

474
00:22:17,640 --> 00:22:20,800
Speaker 1: your property is not steadily losing value. It's doing the opposite.

475
00:22:21,160 --> 00:22:23,680
Speaker 1: But this I R S rule allows you to shelter

476
00:22:23,880 --> 00:22:26,639
Speaker 1: some of that income from taxation. And Matt and I

477
00:22:26,880 --> 00:22:28,760
Speaker 1: we think that that is a park that is worth

478
00:22:29,000 --> 00:22:31,920
Speaker 1: taking advantage of. That's right, Uh. And just you know,

479
00:22:32,160 --> 00:22:35,159
Speaker 1: generally speaking, depreciation is a mechanism that is used in

480
00:22:35,359 --> 00:22:38,119
Speaker 1: more ways than just in real estate, whether that be

481
00:22:38,320 --> 00:22:41,720
Speaker 1: like office furniture and computers. Uh. That allows companies to

482
00:22:41,800 --> 00:22:44,359
Speaker 1: use depreciation to their advantage when tax time rolls around

483
00:22:44,400 --> 00:22:46,520
Speaker 1: as well. Um. But Ben, he does make a good

484
00:22:46,560 --> 00:22:49,879
Speaker 1: point because the I R. S they give a nice benefit,

485
00:22:50,119 --> 00:22:52,680
Speaker 1: but then they also take it away. Uh. And so Ben,

486
00:22:52,800 --> 00:22:54,760
Speaker 1: when you saw that house, part of the deal is

487
00:22:54,800 --> 00:22:56,520
Speaker 1: that the I R. S now wants to get paid

488
00:22:56,600 --> 00:22:59,480
Speaker 1: on the depreciation dollars that you've been writing off over

489
00:22:59,520 --> 00:23:02,120
Speaker 1: the years. If your property is now worth more than

490
00:23:02,200 --> 00:23:04,400
Speaker 1: what you paid for it, which is most likely what's

491
00:23:04,400 --> 00:23:08,400
Speaker 1: gonna happen, you will owe capital gains on the increase

492
00:23:08,600 --> 00:23:12,280
Speaker 1: that you realize, typically at that long term capital gains rate.

493
00:23:12,400 --> 00:23:15,040
Speaker 1: But you also have to pay ordinary income tax on

494
00:23:15,200 --> 00:23:19,359
Speaker 1: the depreciation that you took throughout the years. This is

495
00:23:19,400 --> 00:23:23,359
Speaker 1: called depreciation recapture. Yes makes sense, Yes it does. And

496
00:23:23,440 --> 00:23:26,080
Speaker 1: here here's the thing. Why you aren't required to claim

497
00:23:26,119 --> 00:23:29,240
Speaker 1: depreciation on that property. You're flushing money down the toilet

498
00:23:29,520 --> 00:23:32,080
Speaker 1: if you opt to forgo it. Basically, it's providing this

499
00:23:32,160 --> 00:23:35,399
Speaker 1: current tax benefit which will need to at least be

500
00:23:35,600 --> 00:23:39,280
Speaker 1: partially repaid, kind of depending on specific circumstances. Right, So,

501
00:23:39,320 --> 00:23:43,120
Speaker 1: the mistaken belief around depreciation recapture it occurs when people

502
00:23:43,200 --> 00:23:47,040
Speaker 1: believe that if they avoid taking depreciation now, right, they

503
00:23:47,200 --> 00:23:50,400
Speaker 1: they avoid taking that three point uh six whatever percent

504
00:23:50,480 --> 00:23:53,479
Speaker 1: every single year six getting getting ready with it? Over there,

505
00:23:53,480 --> 00:23:55,480
Speaker 1: are you a tattoo that on the left arm? Even

506
00:23:55,520 --> 00:23:57,960
Speaker 1: if you don't take that depreciation now, when the time

507
00:23:58,040 --> 00:24:00,240
Speaker 1: comes to sell the property, the i R S like,

508
00:24:00,400 --> 00:24:03,119
Speaker 1: the default is that you had taken it, and so

509
00:24:03,280 --> 00:24:06,800
Speaker 1: they are going to require you to repay that depreciation

510
00:24:06,880 --> 00:24:09,440
Speaker 1: amount whether or not you took that depreciation. And so

511
00:24:09,560 --> 00:24:11,760
Speaker 1: you truly, like Joel said, you truly are flushing money

512
00:24:11,800 --> 00:24:13,879
Speaker 1: down the toilet if you don't take advantage of this now,

513
00:24:13,960 --> 00:24:16,560
Speaker 1: because they're going to require it of you later down

514
00:24:16,600 --> 00:24:18,520
Speaker 1: the road. And there are not many greater sins than

515
00:24:18,560 --> 00:24:21,200
Speaker 1: flushing money down the toilet, not not in my book,

516
00:24:21,400 --> 00:24:23,680
Speaker 1: but well, and and you're right, man. But here's the

517
00:24:23,720 --> 00:24:29,280
Speaker 1: other thing is there are ways to completely avoid depreciation

518
00:24:29,400 --> 00:24:34,080
Speaker 1: recapture altogether, which means you're getting that depreciation benefit every

519
00:24:34,240 --> 00:24:36,920
Speaker 1: single year on your taxes, but then you never have

520
00:24:37,000 --> 00:24:39,800
Speaker 1: to pay the Piper, let's talk about that because the

521
00:24:39,840 --> 00:24:42,600
Speaker 1: main ways exactly that is the way in which you

522
00:24:42,680 --> 00:24:45,639
Speaker 1: are keeping all of your money outside of the sewage

523
00:24:45,640 --> 00:24:47,800
Speaker 1: system and so um. You know, we say that the

524
00:24:47,880 --> 00:24:49,240
Speaker 1: main the main way to do that is to not

525
00:24:49,400 --> 00:24:52,359
Speaker 1: sell the property ever. And it's not that there aren't

526
00:24:52,400 --> 00:24:55,560
Speaker 1: reasons to sell a rental property sometimes, but if you're

527
00:24:55,840 --> 00:24:59,400
Speaker 1: a forever holder of that property, that depreciation recapture tax

528
00:24:59,480 --> 00:25:04,040
Speaker 1: bill never comes to because you're never actually getting rid

529
00:25:04,040 --> 00:25:06,200
Speaker 1: of that investment. Or if you do decide to sell,

530
00:25:06,240 --> 00:25:08,480
Speaker 1: there's there's still a way to avoid it. Then do

531
00:25:08,600 --> 00:25:11,320
Speaker 1: it using a ten thirty one tax free exchange method.

532
00:25:11,560 --> 00:25:14,800
Speaker 1: That's another way to basically defer that tax. And so yeah,

533
00:25:14,840 --> 00:25:17,320
Speaker 1: because of this these potential ways to avoid tax in

534
00:25:17,359 --> 00:25:19,760
Speaker 1: the future, it makes sense again to take the burden

535
00:25:19,800 --> 00:25:21,680
Speaker 1: the hand, to take the tax break that's available to

536
00:25:21,800 --> 00:25:24,280
Speaker 1: you today. That's right. Yeah, So Ben, ultimately you're going

537
00:25:24,320 --> 00:25:27,040
Speaker 1: to come on ahead, if you depreciate that home, take

538
00:25:27,080 --> 00:25:29,520
Speaker 1: the current tax break now, and then pay the I

539
00:25:29,720 --> 00:25:32,120
Speaker 1: R S later if you saw the house, but we're

540
00:25:32,160 --> 00:25:34,800
Speaker 1: recommending for you to potentially never sell the house. That's

541
00:25:34,840 --> 00:25:36,720
Speaker 1: kind of one of my personal mottos is never sell

542
00:25:37,119 --> 00:25:38,720
Speaker 1: never sell it. Yeah, And I don't know if it's

543
00:25:38,760 --> 00:25:41,240
Speaker 1: like a great one, but it's it's my motto at least. Yeah.

544
00:25:41,280 --> 00:25:43,760
Speaker 1: Well I said why, I meant why not. I wasn't

545
00:25:43,800 --> 00:25:46,400
Speaker 1: ask anyway. Uh. I wanted to mention too. A friend

546
00:25:46,400 --> 00:25:49,560
Speaker 1: of the show, Chad Carson. He talks a lot about

547
00:25:49,600 --> 00:25:53,040
Speaker 1: real estate, and he has this excellent video on depreciation

548
00:25:53,240 --> 00:25:56,920
Speaker 1: and depreciation recapture when you cele rental property that will

549
00:25:56,960 --> 00:25:59,240
Speaker 1: link to in the show notes. But Ben, best of

550
00:25:59,320 --> 00:26:00,840
Speaker 1: luck to you. I love hearing that you've got this

551
00:26:00,920 --> 00:26:03,240
Speaker 1: rental property that you are thinking through the different tax

552
00:26:03,320 --> 00:26:06,400
Speaker 1: implications You're you're wanting to inform yourself and be aware

553
00:26:06,440 --> 00:26:08,480
Speaker 1: of some of these different rules before you find yourself

554
00:26:08,520 --> 00:26:11,520
Speaker 1: in a situation where you're about to make the wrong move.

555
00:26:12,000 --> 00:26:15,560
Speaker 1: I appreciate your question. Yeah, and and I think a

556
00:26:15,560 --> 00:26:18,320
Speaker 1: little dad joke for you. Well, Ben can be forgiven

557
00:26:18,400 --> 00:26:20,840
Speaker 1: to for not for not knowing the intricaxees like that.

558
00:26:21,040 --> 00:26:24,840
Speaker 1: Is the one thing that gets frustrating about our financial

559
00:26:24,880 --> 00:26:27,879
Speaker 1: system and the tax system is that it's complicated and

560
00:26:28,000 --> 00:26:31,400
Speaker 1: it is hard for people to understand, and something as

561
00:26:31,520 --> 00:26:35,600
Speaker 1: nuanced as depreciation and recapture is needs a little explainer

562
00:26:35,800 --> 00:26:38,440
Speaker 1: and so yeah, hopefully been that helps and and and

563
00:26:38,480 --> 00:26:41,600
Speaker 1: hopefully it helps you make smart decisions with your rental

564
00:26:41,640 --> 00:26:44,959
Speaker 1: property or properties in the future. All Right, Matt, We've

565
00:26:44,960 --> 00:26:47,240
Speaker 1: got a couple more questions to get to, including that

566
00:26:47,320 --> 00:26:49,399
Speaker 1: one about tips for a newborn baby. We'll get to

567
00:26:49,440 --> 00:27:01,000
Speaker 1: that and more right after this. Right, We've got a

568
00:27:01,040 --> 00:27:04,040
Speaker 1: couple more questions here before this episode is over. We're

569
00:27:04,080 --> 00:27:06,240
Speaker 1: gonna talk about babies here in a second. But first

570
00:27:06,600 --> 00:27:10,320
Speaker 1: backdoor roth Iras I met and Joel r is Ali

571
00:27:10,440 --> 00:27:12,440
Speaker 1: from Boston. I want to thank you so much for

572
00:27:12,520 --> 00:27:16,000
Speaker 1: doing this awesome podcast. Um. I started listening probably about

573
00:27:16,000 --> 00:27:17,440
Speaker 1: a year and a half ago, and I've gone back

574
00:27:17,480 --> 00:27:19,840
Speaker 1: and listened to every single episode you've ever done to

575
00:27:19,920 --> 00:27:21,720
Speaker 1: really help my wife and I to turn of finances

576
00:27:21,760 --> 00:27:25,280
Speaker 1: around and feel confident with our financial future. The question

577
00:27:25,359 --> 00:27:27,120
Speaker 1: for you. We both went to school for a long

578
00:27:27,200 --> 00:27:29,480
Speaker 1: time and just recently have solid salaries and are working

579
00:27:29,520 --> 00:27:32,159
Speaker 1: to build up our retirement accounts, which were definitely behind on.

580
00:27:32,880 --> 00:27:34,640
Speaker 1: We both have four or three bs through work, which

581
00:27:34,640 --> 00:27:36,840
Speaker 1: are actually pretty good there through fidelity, and we're both

582
00:27:36,880 --> 00:27:40,399
Speaker 1: in the fidelity of indexed phones. We mactar are a

583
00:27:40,440 --> 00:27:43,119
Speaker 1: contribution to those and so decided to also open I RaSE.

584
00:27:43,560 --> 00:27:45,360
Speaker 1: Our income is over the limit for a roth ira,

585
00:27:45,640 --> 00:27:47,920
Speaker 1: so we open traditional irase, but it's also over the

586
00:27:48,000 --> 00:27:50,879
Speaker 1: deduction limit for the traditional ira. I've read that we

587
00:27:50,920 --> 00:27:53,440
Speaker 1: can fill out a form for non deductible contributions that

588
00:27:53,520 --> 00:27:55,359
Speaker 1: we submit every year and then can keep track of

589
00:27:55,440 --> 00:27:57,680
Speaker 1: when we take money out way down the road. My

590
00:27:57,800 --> 00:27:59,800
Speaker 1: question is, if we put six thousand dollars into a

591
00:28:00,000 --> 00:28:03,040
Speaker 1: additional ira that is a non deductible contribution, can I

592
00:28:03,119 --> 00:28:05,440
Speaker 1: then just roll that over into a roth ira and

593
00:28:05,560 --> 00:28:08,359
Speaker 1: not have to pay taxes on the rollover. We'd love

594
00:28:08,400 --> 00:28:10,960
Speaker 1: to have money in a roth to diversify our retirement accounts.

595
00:28:11,720 --> 00:28:13,520
Speaker 1: It seems like this is the most straightforward way to

596
00:28:13,640 --> 00:28:16,680
Speaker 1: deal with our nondeductible contributions, but also maybe a little

597
00:28:16,680 --> 00:28:19,360
Speaker 1: bit sketchy. Would love your thoughts. Thank you so much,

598
00:28:19,760 --> 00:28:22,320
Speaker 1: all right, Ali, thanks so much for that question. And Joel,

599
00:28:22,560 --> 00:28:24,399
Speaker 1: first we want to we should mention that Ali is

600
00:28:24,440 --> 00:28:27,919
Speaker 1: who donated those trillion beers to us that we enjoyed

601
00:28:27,920 --> 00:28:29,480
Speaker 1: at the end of last year in the beginning of

602
00:28:29,920 --> 00:28:32,280
Speaker 1: this year. So Ali, thank you so much for those beers.

603
00:28:32,320 --> 00:28:36,239
Speaker 1: We really appreciate, like the best beers we've had, but man,

604
00:28:36,320 --> 00:28:38,400
Speaker 1: we are so glad that the podcast has been helpful

605
00:28:38,400 --> 00:28:41,640
Speaker 1: for y'all. Four three bs definitely can be feed laden,

606
00:28:41,960 --> 00:28:44,720
Speaker 1: but yours is with Fidelity, so that is great news.

607
00:28:45,040 --> 00:28:47,440
Speaker 1: They're one of the few four or three B providers

608
00:28:47,520 --> 00:28:50,120
Speaker 1: that aren't feeing customers to death, so we are glad

609
00:28:50,200 --> 00:28:53,080
Speaker 1: to hear that those are available to you. But let's

610
00:28:53,120 --> 00:28:55,440
Speaker 1: go ahead and talk about the back door roth ira

611
00:28:55,480 --> 00:28:57,480
Speaker 1: a for a minute, because this is the common name

612
00:28:58,040 --> 00:29:02,080
Speaker 1: for what Ali is referring to UH, and this has

613
00:29:02,160 --> 00:29:04,600
Speaker 1: been a strategy that a lot of folks have used

614
00:29:04,600 --> 00:29:07,480
Speaker 1: to get money into a roth ira without actually being

615
00:29:07,520 --> 00:29:10,640
Speaker 1: eligible to contribute to a roth ira. While that's the case,

616
00:29:10,960 --> 00:29:14,280
Speaker 1: it has come under fire recently. Some politicians want the

617
00:29:14,320 --> 00:29:19,240
Speaker 1: backdoor wrath to die. Basically, there was an attempt to

618
00:29:19,480 --> 00:29:21,920
Speaker 1: get rid of it in the most recent Build Back

619
00:29:22,000 --> 00:29:24,800
Speaker 1: Better bill that failed to pass that three times fast.

620
00:29:26,200 --> 00:29:29,000
Speaker 1: I'm not gonna try, but did that didn't pass last year,

621
00:29:29,360 --> 00:29:32,160
Speaker 1: and so this could still be something that gets axed,

622
00:29:32,520 --> 00:29:35,400
Speaker 1: and we will certainly let folks know if that happens.

623
00:29:35,600 --> 00:29:37,760
Speaker 1: But we're just not sure how long that back door

624
00:29:37,880 --> 00:29:40,040
Speaker 1: rath will continue to be a thing. UH. It's on

625
00:29:40,080 --> 00:29:43,480
Speaker 1: the chopping block, so doing it while you can, Ali

626
00:29:43,760 --> 00:29:46,320
Speaker 1: is definitely the way to go. Yes, exactly, while the

627
00:29:46,760 --> 00:29:51,160
Speaker 1: portal is still open, jump through it. And yeah. Ali

628
00:29:51,240 --> 00:29:53,640
Speaker 1: mentioned that maybe it's a sketchy way to get money

629
00:29:53,680 --> 00:29:55,640
Speaker 1: into a roth hira, but that is not the case.

630
00:29:56,000 --> 00:29:58,960
Speaker 1: The I R S has actually given their stamp of approval,

631
00:29:59,320 --> 00:30:02,520
Speaker 1: noting that it's a perfectly legal investing move. Again, Matt,

632
00:30:02,560 --> 00:30:04,040
Speaker 1: like you said, at least for now, we don't know

633
00:30:04,120 --> 00:30:08,160
Speaker 1: how long that will continue. Sketchy, sketchy name being the

634
00:30:08,160 --> 00:30:11,480
Speaker 1: backdoor wrath, but completely legit exactly. And uh so yes,

635
00:30:11,520 --> 00:30:14,200
Speaker 1: we would say, Ali, make hay while the sunshines, or

636
00:30:14,400 --> 00:30:18,080
Speaker 1: make contributions while the sunshines, and the thing is making

637
00:30:18,160 --> 00:30:21,920
Speaker 1: that backdoor wrath contribution is actually really easy. I think

638
00:30:21,960 --> 00:30:24,760
Speaker 1: sometimes people overestimate the level of difficulty on this one.

639
00:30:24,840 --> 00:30:27,280
Speaker 1: But it's like, um, I don't know, like a if

640
00:30:27,280 --> 00:30:29,280
Speaker 1: you're trying to, like on a scale one to ten,

641
00:30:29,480 --> 00:30:31,160
Speaker 1: it's like a two two and a half. Right, it's

642
00:30:31,200 --> 00:30:32,920
Speaker 1: I'd give it to three. It's pretty simple. So you

643
00:30:33,000 --> 00:30:36,200
Speaker 1: put money into a traditional ira with your current brokerage account.

644
00:30:36,240 --> 00:30:38,760
Speaker 1: Sticking with Fidelity is a solid move, right because they're

645
00:30:38,760 --> 00:30:42,040
Speaker 1: a great company. And then once the funds have settled

646
00:30:42,160 --> 00:30:44,640
Speaker 1: in that account might take a few days typically, you know,

647
00:30:44,760 --> 00:30:46,880
Speaker 1: five to seven days, you can then make that conversion

648
00:30:46,960 --> 00:30:48,840
Speaker 1: into a WRATH and you should be able to do

649
00:30:49,040 --> 00:30:51,800
Speaker 1: all of this online. And Matt, I actually just did

650
00:30:51,960 --> 00:30:55,240
Speaker 1: my backdoor wrath with Fidelity for this year. Yeah, proof

651
00:30:55,320 --> 00:30:57,000
Speaker 1: is in the pudding exactly. This dude has done it,

652
00:30:57,120 --> 00:30:59,480
Speaker 1: and and it was it was really simple. You suck

653
00:30:59,600 --> 00:31:02,320
Speaker 1: six and dollars into a traditional IRA. You're you're not

654
00:31:02,360 --> 00:31:04,800
Speaker 1: going to take the tax benefit from it because you're

655
00:31:04,800 --> 00:31:07,280
Speaker 1: not eligible for that. And then once those funds appear

656
00:31:07,320 --> 00:31:08,720
Speaker 1: in your account, like I said, it takes about a

657
00:31:08,760 --> 00:31:11,000
Speaker 1: week if you transferred into a ROTH. Like there's a

658
00:31:11,080 --> 00:31:14,200
Speaker 1: simple button to click. It's really just that simple. Yeah,

659
00:31:14,280 --> 00:31:17,040
Speaker 1: the backdoor WROTH, it's really a simple maneuver, especially if

660
00:31:17,040 --> 00:31:20,400
Speaker 1: you don't already have a deductible IRA from previous years.

661
00:31:20,800 --> 00:31:22,440
Speaker 1: Uh and so, like Joel said, the mechanics of it

662
00:31:22,560 --> 00:31:24,920
Speaker 1: are really simple. But then just make sure that you

663
00:31:24,960 --> 00:31:27,240
Speaker 1: fill out i r S Form eight six oh six

664
00:31:27,720 --> 00:31:29,760
Speaker 1: when filling out your taxes so that the I r

665
00:31:29,920 --> 00:31:33,880
Speaker 1: S knows that you're making non deductible contributions. It's not

666
00:31:33,960 --> 00:31:35,640
Speaker 1: like when you make those contributions to your ira A

667
00:31:35,800 --> 00:31:37,920
Speaker 1: there's an option. Is this a traditional IRA or a

668
00:31:38,000 --> 00:31:40,560
Speaker 1: roth IRA or a non deductible i RA that comes

669
00:31:40,640 --> 00:31:42,800
Speaker 1: down to you and the i R s Uh, this

670
00:31:42,960 --> 00:31:45,400
Speaker 1: is between you and fidelity. But if you do already

671
00:31:45,440 --> 00:31:48,560
Speaker 1: have a traditional IRA with deductible funds already in place,

672
00:31:49,200 --> 00:31:51,440
Speaker 1: this complicates the formula a little bit when it comes

673
00:31:51,480 --> 00:31:53,920
Speaker 1: to figuring out how much you owe in taxes. This

674
00:31:54,080 --> 00:31:56,600
Speaker 1: might be an instance where where would be beneficial to

675
00:31:56,680 --> 00:32:00,000
Speaker 1: hire a tax professional because the formula does get pretty complicated.

676
00:32:00,040 --> 00:32:03,240
Speaker 1: Did But Ali, best of luck to you. It is

677
00:32:03,400 --> 00:32:06,200
Speaker 1: as simple as you're making it sound. Based on the

678
00:32:06,280 --> 00:32:09,200
Speaker 1: fact that you're talking about, you know, starting to contribute

679
00:32:09,240 --> 00:32:12,200
Speaker 1: to an IRA maybe for the first time. Just immediately

680
00:32:12,280 --> 00:32:14,920
Speaker 1: convert those funds. Uh Yeah, get going with that backdoor

681
00:32:15,000 --> 00:32:18,360
Speaker 1: ROTH and know that it is totally legitimate, most definitely

682
00:32:18,440 --> 00:32:21,360
Speaker 1: easy peasy. All right, let's get to our our last

683
00:32:21,520 --> 00:32:24,719
Speaker 1: question for this episode. This one comes from a listener

684
00:32:24,880 --> 00:32:27,640
Speaker 1: who just had a baby and he's wondering how does

685
00:32:27,680 --> 00:32:30,360
Speaker 1: he not spend too much money on that baby? Hey,

686
00:32:30,480 --> 00:32:33,600
Speaker 1: Matt and Joel, this is David from Maryland. Been listening

687
00:32:33,640 --> 00:32:36,920
Speaker 1: since episode three and haven't stopped since. My question to

688
00:32:37,000 --> 00:32:39,360
Speaker 1: you both is what money saving baby hacks do you

689
00:32:39,480 --> 00:32:42,000
Speaker 1: have that listeners could use. With a little one on

690
00:32:42,080 --> 00:32:44,280
Speaker 1: the way, I figured the HTM duo would have some

691
00:32:44,520 --> 00:32:49,320
Speaker 1: awesome tips. Thanks guys. Well, David, if you're looking to

692
00:32:49,400 --> 00:32:51,920
Speaker 1: save the most money possible, then the best money tip

693
00:32:52,000 --> 00:32:53,800
Speaker 1: we could give you would be to never have gotten

694
00:32:53,840 --> 00:32:58,240
Speaker 1: pregnant in the first place. Because babies and kids are expensive.

695
00:32:58,680 --> 00:33:01,400
Speaker 1: The Bureau of Labors Batistics says that it's like two

696
00:33:02,360 --> 00:33:04,760
Speaker 1: dollars to raise a kid to adulthood. You know, we

697
00:33:04,840 --> 00:33:07,200
Speaker 1: don't think it actually cost nearly that much, not not

698
00:33:07,320 --> 00:33:09,720
Speaker 1: if you're not if you're frugal and intentional. Yeah, but

699
00:33:09,920 --> 00:33:12,280
Speaker 1: you know, expect those costs to start ramping up because

700
00:33:12,600 --> 00:33:14,920
Speaker 1: they do get expensive. And of course, you know we're

701
00:33:14,960 --> 00:33:17,400
Speaker 1: joking about not having kids at all. Between A Jel

702
00:33:17,400 --> 00:33:19,840
Speaker 1: and I, we have a combined seven kids in total.

703
00:33:19,920 --> 00:33:23,040
Speaker 1: They're truly a blessing. Uh So, congrats on your new

704
00:33:23,080 --> 00:33:24,960
Speaker 1: baby that's on the way. Yeah, babies are the best.

705
00:33:25,080 --> 00:33:27,200
Speaker 1: We are pumped for you. I wouldn't trade my babies

706
00:33:27,240 --> 00:33:29,880
Speaker 1: in for two fifty grand even definitely, even if I

707
00:33:29,960 --> 00:33:31,680
Speaker 1: got offered that deal tomorrow, Matt, I wouldn't do it.

708
00:33:31,720 --> 00:33:34,240
Speaker 1: There's no way. What if the I r S increases

709
00:33:34,400 --> 00:33:37,000
Speaker 1: the or the BLS determines that in reality, it's like

710
00:33:37,080 --> 00:33:39,960
Speaker 1: three fifty. All right, I don't I don't want attempt

711
00:33:39,960 --> 00:33:43,840
Speaker 1: to second guess it. Then maybe maybe number three. Definitely

712
00:33:43,840 --> 00:33:45,400
Speaker 1: not getting rid of that one. All right. Well, let's

713
00:33:45,440 --> 00:33:47,800
Speaker 1: get to the money saving baby hacks. And and one

714
00:33:47,840 --> 00:33:51,400
Speaker 1: worth noting is that your friends and family typically want

715
00:33:51,440 --> 00:33:53,560
Speaker 1: to buy you stuff when you have a baby, especially

716
00:33:53,840 --> 00:33:57,560
Speaker 1: that first baby, and that's super sweet. So there's often

717
00:33:57,600 --> 00:34:00,360
Speaker 1: a bunch of stuff you need in the beginning the days,

718
00:34:00,560 --> 00:34:03,440
Speaker 1: and so it's just massively helpful to have baby showers

719
00:34:03,560 --> 00:34:06,720
Speaker 1: and to have other people helping to fund that baby

720
00:34:06,800 --> 00:34:08,440
Speaker 1: from the get go. And they're just fun too, I

721
00:34:08,480 --> 00:34:10,719
Speaker 1: mean early on, like, yeah, I don't know, showers are

722
00:34:10,760 --> 00:34:12,360
Speaker 1: a ton of fun in my book, So yeah, I

723
00:34:12,400 --> 00:34:13,640
Speaker 1: mean really, when it comes down to it, get a

724
00:34:13,680 --> 00:34:15,880
Speaker 1: registry going, make sure to ask for the stuff that

725
00:34:15,920 --> 00:34:17,960
Speaker 1: you definitely want new for those events. And I say

726
00:34:18,160 --> 00:34:19,800
Speaker 1: the things you definitely want new, because there are a

727
00:34:19,880 --> 00:34:22,399
Speaker 1: lot of things that you're gonna want to prioritize buying

728
00:34:22,520 --> 00:34:25,080
Speaker 1: used yourself but so make sure to get this stuff.

729
00:34:25,080 --> 00:34:27,000
Speaker 1: You're like, no, no, I definitely want new stuff and

730
00:34:27,080 --> 00:34:29,880
Speaker 1: put that on the registry. But simultaneously remember that you

731
00:34:29,920 --> 00:34:32,959
Speaker 1: don't have to get every single item on the list

732
00:34:33,400 --> 00:34:35,560
Speaker 1: that you see around the internet. There's all sorts of

733
00:34:35,640 --> 00:34:37,839
Speaker 1: like things you must buy before you have a baby,

734
00:34:37,880 --> 00:34:40,239
Speaker 1: and it's like, I mean some of those things like yeah,

735
00:34:40,360 --> 00:34:42,680
Speaker 1: but certainly not all those things there. There are a

736
00:34:42,760 --> 00:34:44,719
Speaker 1: lot of gadgets that you don't really need. You don't

737
00:34:44,760 --> 00:34:46,320
Speaker 1: need a bottle warmer. I'm just gonna tell you, like,

738
00:34:46,360 --> 00:34:48,879
Speaker 1: you don't. You don't need that, and some people will

739
00:34:48,920 --> 00:34:51,040
Speaker 1: tell you it's a must have. It's not a must have.

740
00:34:51,160 --> 00:34:53,000
Speaker 1: And how how long have bottle warmer has been around?

741
00:34:53,000 --> 00:34:55,400
Speaker 1: Like eight years? I come on, it makes me think

742
00:34:55,440 --> 00:34:57,080
Speaker 1: of like the wipes warmer as well. That's one thing

743
00:34:57,200 --> 00:34:58,920
Speaker 1: that we got. I think maybe that that may have

744
00:34:58,960 --> 00:35:01,400
Speaker 1: been one that was gifted to a uh and you know,

745
00:35:01,719 --> 00:35:02,920
Speaker 1: I think we used it for a little bit, but

746
00:35:03,000 --> 00:35:04,719
Speaker 1: then we're just like too much of a pain in

747
00:35:04,760 --> 00:35:07,640
Speaker 1: the butt. It's like sorry, cold white for your bottom

748
00:35:07,760 --> 00:35:10,520
Speaker 1: this winter exactly. And so yeah, you'd be surprised, I

749
00:35:10,600 --> 00:35:12,719
Speaker 1: think at at how little it it actually takes to

750
00:35:12,800 --> 00:35:15,040
Speaker 1: raise a happy and healthy baby. It's it's it's not

751
00:35:15,160 --> 00:35:17,200
Speaker 1: as much as the headlines suggest. And and then a

752
00:35:17,239 --> 00:35:20,319
Speaker 1: lot of the gadgets or um items that you're told

753
00:35:20,400 --> 00:35:22,640
Speaker 1: that you need, a lot of them are not necessary.

754
00:35:22,760 --> 00:35:25,560
Speaker 1: What about the the giraffe. There's like the little toy

755
00:35:25,640 --> 00:35:28,840
Speaker 1: giraffe that is like a classic like chewing toy or

756
00:35:28,880 --> 00:35:30,399
Speaker 1: something like that. You know what I'm talking about. It's

757
00:35:30,400 --> 00:35:32,759
Speaker 1: a it's a it's a French origin, I believe, yeah,

758
00:35:32,840 --> 00:35:34,680
Speaker 1: And so I think everyone gets it because they're like, oh,

759
00:35:34,719 --> 00:35:37,279
Speaker 1: I want my kids to be like, you know, francophile.

760
00:35:38,320 --> 00:35:40,960
Speaker 1: But like that's one of those things that we that

761
00:35:41,040 --> 00:35:44,320
Speaker 1: we got ourselves literally literally for ourselves, you know, for

762
00:35:44,440 --> 00:35:46,920
Speaker 1: us to feel good about it. Not necessarily because any

763
00:35:46,960 --> 00:35:49,080
Speaker 1: of our kids actually chewed on the dang thing. But

764
00:35:49,440 --> 00:35:51,960
Speaker 1: I will say for some folks, you know, there is

765
00:35:52,000 --> 00:35:54,600
Speaker 1: a pretty large upfront cost when it comes to babies,

766
00:35:54,600 --> 00:35:58,440
Speaker 1: and I'm talking about the hospital bill. If you have insurance,

767
00:35:58,520 --> 00:36:01,319
Speaker 1: like most folks do, it's importan to review that up front.

768
00:36:01,440 --> 00:36:03,560
Speaker 1: You know, talk to your insurance provider, talk to your

769
00:36:03,600 --> 00:36:06,080
Speaker 1: medical provider as well. Uh, figure out what sort of

770
00:36:06,200 --> 00:36:09,200
Speaker 1: out of pocket costs that you might face and then

771
00:36:09,239 --> 00:36:12,600
Speaker 1: push back on either procedures or appointments that may not

772
00:36:12,719 --> 00:36:16,759
Speaker 1: be necessary. This sounds like very much matted the guy

773
00:36:16,800 --> 00:36:18,880
Speaker 1: who doesn't go to the dentist for a decade, Like

774
00:36:18,960 --> 00:36:20,640
Speaker 1: you don't need that, you gotta go to the doctor.

775
00:36:20,719 --> 00:36:23,120
Speaker 1: Just get birth at home overrated. And I don't know

776
00:36:23,160 --> 00:36:25,719
Speaker 1: how many jokes you and I threw back and forth

777
00:36:25,800 --> 00:36:29,640
Speaker 1: when our wives were pregnant about you know, taking taking

778
00:36:29,680 --> 00:36:31,719
Speaker 1: care of it at home. But like our wives did

779
00:36:31,760 --> 00:36:33,960
Speaker 1: not find them funny. They did not enjoy the jokes.

780
00:36:34,040 --> 00:36:35,960
Speaker 1: But like I'm thinking about like the three D ultrasound,

781
00:36:36,040 --> 00:36:38,000
Speaker 1: you know, like that might be pretty cool, But depending

782
00:36:38,000 --> 00:36:39,840
Speaker 1: on how much you're gonna have to pay for that, like,

783
00:36:40,080 --> 00:36:42,520
Speaker 1: it might be pretty easy to convince yourself that the

784
00:36:42,920 --> 00:36:45,880
Speaker 1: muddy blob baby face print out just isn't worth it.

785
00:36:46,360 --> 00:36:48,160
Speaker 1: And you know, if you are paying a lot more

786
00:36:48,280 --> 00:36:51,520
Speaker 1: out of pocket, remember that you can negotiate with the

787
00:36:51,560 --> 00:36:55,120
Speaker 1: provider by agreeing to an upfront cash price. But even

788
00:36:55,160 --> 00:36:57,080
Speaker 1: if they're not willing to negotiate, realize that it's not

789
00:36:57,200 --> 00:36:59,400
Speaker 1: that big of a deal to switch providers. You can

790
00:36:59,440 --> 00:37:02,160
Speaker 1: even head to a earthing center where we're experienced midwise,

791
00:37:02,160 --> 00:37:04,600
Speaker 1: where they can give you an excellent experience, you know,

792
00:37:04,640 --> 00:37:08,560
Speaker 1: oftentimes experiences that might be more in line with what

793
00:37:08,800 --> 00:37:11,120
Speaker 1: you actually have in mind. Uh, and then not to

794
00:37:11,200 --> 00:37:14,359
Speaker 1: mention that there are oftentimes much more affordable as well.

795
00:37:14,440 --> 00:37:17,040
Speaker 1: That's definitely a path we took, uh. And we were

796
00:37:17,080 --> 00:37:19,880
Speaker 1: able to save a ton of money compared to what

797
00:37:19,960 --> 00:37:22,640
Speaker 1: we're paying for other birds at the hospital. Yes, a

798
00:37:22,680 --> 00:37:25,360
Speaker 1: lot of people say that that is the best combo

799
00:37:25,600 --> 00:37:29,440
Speaker 1: of experience and money saving. Absolutely, and then okay, once

800
00:37:29,560 --> 00:37:32,120
Speaker 1: once the baby comes home, let's talk about that too, because, uh,

801
00:37:32,280 --> 00:37:34,920
Speaker 1: to be honest, breastfeeding is going to save a lot

802
00:37:35,040 --> 00:37:37,560
Speaker 1: of money as well. Formula is expensive. Although if you're

803
00:37:37,560 --> 00:37:40,080
Speaker 1: gonna get formula, costco, I would say is a great

804
00:37:40,080 --> 00:37:42,800
Speaker 1: place to turn for that. But Matt and I were not.

805
00:37:43,040 --> 00:37:44,920
Speaker 1: We're not ladies, so we're not going to dwell on

806
00:37:45,040 --> 00:37:47,000
Speaker 1: that for a long time. Just just putting that out there.

807
00:37:47,239 --> 00:37:50,360
Speaker 1: And then also cloth diapers that and a lot of

808
00:37:50,400 --> 00:37:53,400
Speaker 1: people met they hear that and they're like, gross, not

809
00:37:53,520 --> 00:37:55,480
Speaker 1: going to do that. But the thing is, cloth diapers

810
00:37:55,520 --> 00:37:57,400
Speaker 1: have gotten a lot better. I think if you think

811
00:37:57,440 --> 00:38:01,080
Speaker 1: of cloth diapers of years ago, you're like, yeah, not

812
00:38:01,239 --> 00:38:03,040
Speaker 1: doing that. Yeah, I see pictures of me and cloth

813
00:38:03,120 --> 00:38:05,800
Speaker 1: diapers in the eighties and it was just literally like

814
00:38:06,120 --> 00:38:09,359
Speaker 1: a rag with like an elastic rubber band like yes

815
00:38:10,000 --> 00:38:12,120
Speaker 1: around my way. So I'm like, how did that do

816
00:38:12,760 --> 00:38:17,360
Speaker 1: anything anything? Actually, uh, that was sanitary, you know, No,

817
00:38:17,440 --> 00:38:20,000
Speaker 1: I don't think it was sanitary, but they've gotten a

818
00:38:20,000 --> 00:38:22,000
Speaker 1: whole lot better. And you and I've both done the

819
00:38:22,040 --> 00:38:25,000
Speaker 1: cloth diaper thing. And yeah, when you use them for

820
00:38:25,160 --> 00:38:28,600
Speaker 1: multiple years, you can save over a thousand bucks over

821
00:38:28,640 --> 00:38:32,080
Speaker 1: the cost of disposable diapers. And then let's say David

822
00:38:32,320 --> 00:38:34,680
Speaker 1: is planning on having more kids, Like, they only save

823
00:38:34,719 --> 00:38:36,799
Speaker 1: you more money with every other kid that you put

824
00:38:36,880 --> 00:38:39,920
Speaker 1: them on. So that's definitely something worth looking into. And

825
00:38:40,040 --> 00:38:41,360
Speaker 1: that's one of those things you can also put on

826
00:38:41,440 --> 00:38:45,120
Speaker 1: your registry because it's like these cute diapers. They are

827
00:38:45,440 --> 00:38:49,120
Speaker 1: really cute and you get different colors and patterns, designs,

828
00:38:49,160 --> 00:38:51,279
Speaker 1: whatever you want. And uh yeah, and and if you

829
00:38:51,360 --> 00:38:53,719
Speaker 1: go the disposable diaper out, make sure you're getting the

830
00:38:53,760 --> 00:38:57,280
Speaker 1: affordable ones, like all the Target or Costco. Just remember,

831
00:38:57,360 --> 00:39:00,560
Speaker 1: diapers are really good for one one thing or two things,

832
00:39:00,600 --> 00:39:03,560
Speaker 1: I guess, and number one or number two you're gonna

833
00:39:03,560 --> 00:39:05,399
Speaker 1: tass him in the trash. So don't spend too much

834
00:39:05,520 --> 00:39:08,040
Speaker 1: time agonizing or thinking that you've got to get the

835
00:39:08,160 --> 00:39:10,600
Speaker 1: best ones or the organic version or anything like that.

836
00:39:10,680 --> 00:39:13,200
Speaker 1: I mean, the different companies out there who can afford advertising.

837
00:39:13,280 --> 00:39:15,320
Speaker 1: They make it seem like that these are going to

838
00:39:15,360 --> 00:39:17,520
Speaker 1: be diapers that you passed down to future generations, that

839
00:39:17,560 --> 00:39:19,520
Speaker 1: these are like heirloom diapers or something like that. But like,

840
00:39:20,000 --> 00:39:21,920
Speaker 1: remember you were these when you were a baby. These

841
00:39:21,920 --> 00:39:23,640
Speaker 1: are just going in the trash. And so what is

842
00:39:23,680 --> 00:39:27,800
Speaker 1: the most affordable way that you can effectively capture the

843
00:39:27,880 --> 00:39:31,360
Speaker 1: things that you don't want captured? But you know on

844
00:39:31,440 --> 00:39:34,240
Speaker 1: your floor, do that in whatever way is most affordable

845
00:39:34,280 --> 00:39:36,120
Speaker 1: for you. But moving on, you know, like Joel you

846
00:39:36,239 --> 00:39:39,120
Speaker 1: mentioned showers, Like hopefully some of the things that you

847
00:39:39,560 --> 00:39:41,719
Speaker 1: want new you can you know, can be provided for

848
00:39:41,920 --> 00:39:44,440
Speaker 1: you by friends and family. But then you know, for

849
00:39:44,480 --> 00:39:48,080
Speaker 1: everything else that you need, going the used route is

850
00:39:48,160 --> 00:39:52,120
Speaker 1: where it's at. Remember, babies, they don't really care whether

851
00:39:52,200 --> 00:39:54,319
Speaker 1: or not something is brand new or not. Like even

852
00:39:54,400 --> 00:39:57,799
Speaker 1: kids when they're when they're younger, they brand Take it back, dude,

853
00:39:57,920 --> 00:40:01,120
Speaker 1: seriously speaking of cribs, like that's literally uh an item

854
00:40:01,440 --> 00:40:02,800
Speaker 1: that we bought used. I want to say, for like

855
00:40:02,880 --> 00:40:05,719
Speaker 1: forty or sixty bucks. Before we had our first kid. Uh,

856
00:40:05,800 --> 00:40:08,000
Speaker 1: it was a used mini crib and so it's not

857
00:40:08,040 --> 00:40:10,320
Speaker 1: even a full size crib. It's like this miniature version.

858
00:40:10,440 --> 00:40:12,960
Speaker 1: It's the dimensions are a lot smaller, but everything all

859
00:40:13,000 --> 00:40:16,000
Speaker 1: four of our kids slept in that crib. It was

860
00:40:16,280 --> 00:40:19,120
Speaker 1: perfectly suitable. And that's the route that we would recommend

861
00:40:19,160 --> 00:40:21,600
Speaker 1: for folks. Facebook Marketplace, that's a great spot to turn.

862
00:40:22,000 --> 00:40:24,360
Speaker 1: And keep in mind too that there are different stores

863
00:40:24,400 --> 00:40:28,920
Speaker 1: that specialized in use children's items. But you know, it

864
00:40:29,000 --> 00:40:31,359
Speaker 1: might be even better to ask friends who have kids

865
00:40:31,440 --> 00:40:33,799
Speaker 1: that are just a little bit older for their hand

866
00:40:33,840 --> 00:40:36,680
Speaker 1: me downs. That has saved us a bundle u There

867
00:40:36,719 --> 00:40:38,560
Speaker 1: are two or three families that were close with who

868
00:40:38,640 --> 00:40:41,719
Speaker 1: drop off a garbage bag or two or three full

869
00:40:41,760 --> 00:40:44,279
Speaker 1: of clothes a couple of times a year, and that

870
00:40:44,480 --> 00:40:47,839
Speaker 1: helps us to avoid buying new stuff at targets. Even

871
00:40:47,960 --> 00:40:50,480
Speaker 1: borrowing certain items can save you a ton. I'm thinking

872
00:40:50,520 --> 00:40:54,040
Speaker 1: about how with our fourth kid at that point, we

873
00:40:54,320 --> 00:40:56,040
Speaker 1: were you know, when we had West, you wouldn't think

874
00:40:56,080 --> 00:40:57,880
Speaker 1: we're going to have any more kids necessarily, and so

875
00:40:57,920 --> 00:40:59,160
Speaker 1: we had already gotten rid of a lot of the

876
00:40:59,200 --> 00:41:02,800
Speaker 1: baby stuff. A shock surprise I mean it was partially

877
00:41:02,840 --> 00:41:06,160
Speaker 1: a surprise. Um. But in this case, we had gotten

878
00:41:06,280 --> 00:41:08,160
Speaker 1: rid of the car carrier that you know, like the

879
00:41:08,160 --> 00:41:10,400
Speaker 1: baby seat for the car, and we knew that they

880
00:41:10,440 --> 00:41:12,719
Speaker 1: hadn't been in any rex they were no longer uh

881
00:41:13,000 --> 00:41:15,279
Speaker 1: used or not at the time at least weren't using

882
00:41:15,360 --> 00:41:17,719
Speaker 1: their baby seat, and so we borrowed that from them

883
00:41:17,800 --> 00:41:20,120
Speaker 1: for like a year. We're done with it. It's still

884
00:41:20,120 --> 00:41:23,360
Speaker 1: had plenty of time left before it was quote unquote expired,

885
00:41:23,800 --> 00:41:25,279
Speaker 1: and we give it back to them and I don't

886
00:41:25,320 --> 00:41:26,759
Speaker 1: know if they're hanging onto it now for if they

887
00:41:26,800 --> 00:41:28,759
Speaker 1: have another kid, or if they've given it, you know,

888
00:41:28,920 --> 00:41:31,800
Speaker 1: or sold it to somebody else. But the window of

889
00:41:32,080 --> 00:41:33,680
Speaker 1: you know, the period of time that we use certain

890
00:41:33,719 --> 00:41:37,880
Speaker 1: items with our kids are are quickly closing. I mean

891
00:41:37,920 --> 00:41:39,919
Speaker 1: there's some things that kids wear just a couple of times.

892
00:41:39,960 --> 00:41:41,480
Speaker 1: There are certain toys that they only play with a

893
00:41:41,560 --> 00:41:44,480
Speaker 1: couple of times, and so finding different ways, more affordable

894
00:41:44,520 --> 00:41:47,520
Speaker 1: ways to to acquire those items, whether it be borrowing

895
00:41:47,840 --> 00:41:50,560
Speaker 1: or you know, buying them used, that's what we would recommend. Yeah,

896
00:41:50,560 --> 00:41:52,840
Speaker 1: I feel like the gap between new and used prices

897
00:41:52,920 --> 00:41:56,160
Speaker 1: on kids stuff is bigger than almost because it has

898
00:41:56,239 --> 00:41:58,920
Speaker 1: such a limited time frame that you're using it like

899
00:41:59,480 --> 00:42:02,200
Speaker 1: you might be by a clothing item, and they might

900
00:42:02,239 --> 00:42:03,879
Speaker 1: wear it four or five times, and then they're they're

901
00:42:03,920 --> 00:42:05,759
Speaker 1: growing so quickly that they're done with it, and so

902
00:42:06,120 --> 00:42:08,680
Speaker 1: people are willing to give that away really quickly. And

903
00:42:08,760 --> 00:42:10,920
Speaker 1: that that's one of the cool things about the society

904
00:42:10,960 --> 00:42:12,959
Speaker 1: that we live in is it's so easy to find

905
00:42:13,120 --> 00:42:15,520
Speaker 1: that stuff. It's so easy to to sign up for

906
00:42:15,520 --> 00:42:18,239
Speaker 1: alerts for your buy nothing group where people are giving

907
00:42:18,280 --> 00:42:21,040
Speaker 1: those things away and um, and it will save you

908
00:42:21,120 --> 00:42:23,799
Speaker 1: a lot of money when it comes to what you're

909
00:42:23,800 --> 00:42:27,239
Speaker 1: gonna spend on your kid's wardrobe or other items that

910
00:42:27,239 --> 00:42:30,360
Speaker 1: you're gonna put in the room where they're sleeping in

911
00:42:30,360 --> 00:42:33,120
Speaker 1: the nursery. And another quick thing to remember too is

912
00:42:33,280 --> 00:42:36,960
Speaker 1: that's you and your partner. Uh. Your relationship is so

913
00:42:37,120 --> 00:42:40,520
Speaker 1: incredibly important. Uh. And what Joel, Joel. One thing that

914
00:42:40,600 --> 00:42:42,920
Speaker 1: you and I that we have done, uh since we

915
00:42:43,080 --> 00:42:46,240
Speaker 1: had our first kids over eight years ago, is pretty

916
00:42:46,280 --> 00:42:49,399
Speaker 1: early on, we instituted a date night swap. Those first

917
00:42:49,400 --> 00:42:51,320
Speaker 1: couple of months. The babies they sleep no matter what,

918
00:42:51,520 --> 00:42:52,920
Speaker 1: so you can put them in the little baby car

919
00:42:53,000 --> 00:42:55,080
Speaker 1: carrier and take them to the restaurant. But after at

920
00:42:55,160 --> 00:42:56,759
Speaker 1: least for us, it was like after a month three

921
00:42:57,160 --> 00:43:00,040
Speaker 1: they're too aware as to what's going on, and you

922
00:43:00,080 --> 00:43:01,880
Speaker 1: want to leave them at home when you're going out

923
00:43:01,920 --> 00:43:05,480
Speaker 1: on your date nights. That swap has saved us so

924
00:43:05,880 --> 00:43:07,959
Speaker 1: much money. Have you ever thought about this, well, because

925
00:43:08,000 --> 00:43:10,480
Speaker 1: babysitting is essentially at this point have to cost him

926
00:43:10,480 --> 00:43:13,320
Speaker 1: a date. Yes, seriously, And so I mean, i'm you know,

927
00:43:13,560 --> 00:43:15,800
Speaker 1: estimating we that you would pay about fifty bucks for

928
00:43:16,200 --> 00:43:18,000
Speaker 1: a couple, you know, two and a half hours. You know,

929
00:43:18,040 --> 00:43:19,799
Speaker 1: that's that's about how long we spend on our date nights.

930
00:43:20,239 --> 00:43:22,279
Speaker 1: Every single week, either Kate and I are going out

931
00:43:22,320 --> 00:43:23,719
Speaker 1: on a date and you come over and you know,

932
00:43:23,880 --> 00:43:25,879
Speaker 1: hold the place down, and then the next week it'll

933
00:43:25,880 --> 00:43:27,239
Speaker 1: be your date night and then I head over to

934
00:43:27,320 --> 00:43:30,279
Speaker 1: jas place. But if you think about fifty bucks a pop, right,

935
00:43:30,280 --> 00:43:32,000
Speaker 1: so you're looking at it about a hundred dollars a month.

936
00:43:32,040 --> 00:43:35,200
Speaker 1: You're looking at twelve a year times eight. You know,

937
00:43:35,320 --> 00:43:39,560
Speaker 1: our oldest kids are older than eight years old. As dollars,

938
00:43:39,600 --> 00:43:42,600
Speaker 1: that's almost ten thousand dollars that we've saved just in

939
00:43:43,000 --> 00:43:47,520
Speaker 1: date nights, the ability to go out affordably. And then

940
00:43:47,560 --> 00:43:49,399
Speaker 1: not to mention, you know, think about how much better

941
00:43:49,600 --> 00:43:52,759
Speaker 1: of a place your relationship is in because you've been

942
00:43:52,800 --> 00:43:55,960
Speaker 1: able to go on regular date nights with with Emily. Yep,

943
00:43:56,040 --> 00:43:58,160
Speaker 1: I agree, yeah, I think, yeah, that date swap has

944
00:43:58,200 --> 00:44:01,680
Speaker 1: been almost invaluable. Although you just calculated the value and its,

945
00:44:02,760 --> 00:44:04,880
Speaker 1: but you can't place value on how much better, how

946
00:44:04,960 --> 00:44:07,399
Speaker 1: much better of a of a position your relationship is in. So, David,

947
00:44:07,440 --> 00:44:09,440
Speaker 1: I guess you know. My recommendation here then for you

948
00:44:10,080 --> 00:44:11,640
Speaker 1: is to find somebody else you might be in a

949
00:44:11,640 --> 00:44:14,360
Speaker 1: similar stage of life as you, like Joel and I have.

950
00:44:14,680 --> 00:44:16,359
Speaker 1: You know, we've got each other, We've this is something

951
00:44:16,440 --> 00:44:18,680
Speaker 1: we were able to to set up early on, and

952
00:44:18,760 --> 00:44:21,319
Speaker 1: I literally can't think of anything else in my life

953
00:44:21,400 --> 00:44:25,319
Speaker 1: that has been as regular and consistent as our date nights.

954
00:44:25,360 --> 00:44:27,320
Speaker 1: I mean literally we never miss it unless it's like

955
00:44:27,400 --> 00:44:29,200
Speaker 1: Christmas Day, you know, if like if y'all are out

956
00:44:29,239 --> 00:44:31,240
Speaker 1: of town, or if we're at a town for Christmas

957
00:44:31,520 --> 00:44:33,520
Speaker 1: or for some other holiday, if like in one of

958
00:44:33,600 --> 00:44:34,960
Speaker 1: us is off at the beach or something like that,

959
00:44:35,040 --> 00:44:37,279
Speaker 1: we'll miss it. But basically, only like three weeks out

960
00:44:37,280 --> 00:44:38,960
Speaker 1: of the years as one we'll skip it. And so

961
00:44:39,160 --> 00:44:41,120
Speaker 1: David hopefully that is something that you will be able

962
00:44:41,200 --> 00:44:44,239
Speaker 1: to implement in your life as well, no doubt. All right, well,

963
00:44:44,320 --> 00:44:46,359
Speaker 1: and David, best of luck to you bringing a new

964
00:44:46,400 --> 00:44:48,759
Speaker 1: baby into this world and then hopefully not spending too

965
00:44:48,880 --> 00:44:52,080
Speaker 1: much money on that baby while giving it and showering

966
00:44:52,120 --> 00:44:54,239
Speaker 1: it with the amount of love that it deserves. Absolutely

967
00:44:54,239 --> 00:44:55,680
Speaker 1: all right, man, Let's get back to to the beer

968
00:44:55,760 --> 00:44:58,480
Speaker 1: that we had on this episode. This one was called

969
00:44:58,880 --> 00:45:02,279
Speaker 1: hatch Me Outside by Crosstown Brewing, Memphis, Tennessee. Would have

970
00:45:02,280 --> 00:45:06,240
Speaker 1: called it hatched Me if you can leo movie exactly.

971
00:45:06,480 --> 00:45:08,320
Speaker 1: That would have been Tom Hanks. Who else was in

972
00:45:08,360 --> 00:45:11,640
Speaker 1: the movie? Do you remember those? Remember? I think that

973
00:45:11,680 --> 00:45:13,680
Speaker 1: they were. They were been a long time. But what

974
00:45:13,760 --> 00:45:15,480
Speaker 1: were your thoughts on this one? Now? Okay, so I

975
00:45:15,640 --> 00:45:18,080
Speaker 1: noticed here I saved a little bit of my beard.

976
00:45:18,120 --> 00:45:20,560
Speaker 1: You want to try some of mine? Because I looked

977
00:45:20,640 --> 00:45:23,279
Speaker 1: over at yours and yours was super clear, and I look,

978
00:45:23,360 --> 00:45:24,759
Speaker 1: I noticed when I looked down in mind it was

979
00:45:24,800 --> 00:45:29,040
Speaker 1: super cloudy. I gave you the first poor and I

980
00:45:29,080 --> 00:45:31,000
Speaker 1: don't know if you're gonna stop while we were recording,

981
00:45:31,000 --> 00:45:32,960
Speaker 1: but I reached over and stole some of your beer

982
00:45:33,000 --> 00:45:34,279
Speaker 1: because I wanted to give it a little bit of

983
00:45:34,360 --> 00:45:38,279
Speaker 1: a taste. It's definitely awkward podcasting. Um, but how much

984
00:45:38,360 --> 00:45:41,359
Speaker 1: more chilly flavor do you taste in mine compared to your?

985
00:45:41,360 --> 00:45:42,920
Speaker 1: Because I looked at years and I gave it a

986
00:45:42,960 --> 00:45:44,960
Speaker 1: little taste and it tasted more like a blonde deil,

987
00:45:45,040 --> 00:45:46,880
Speaker 1: which is what this is. But I felt like it

988
00:45:46,960 --> 00:45:50,480
Speaker 1: was lacking some of that green hatch pepper flavor. And

989
00:45:50,560 --> 00:45:52,239
Speaker 1: so for me, like, at least in my cup over here,

990
00:45:52,680 --> 00:45:56,480
Speaker 1: the that pepper flavor was incredibly strong. I mean kind

991
00:45:56,520 --> 00:45:58,480
Speaker 1: of reminded me of the shahidos that we will grow

992
00:45:58,480 --> 00:46:00,400
Speaker 1: in our garden and blister them up on the grittle

993
00:46:00,880 --> 00:46:02,719
Speaker 1: during the summer's. But I don't know if I've ever

994
00:46:02,800 --> 00:46:06,160
Speaker 1: had a beer that's had pepper flavor in it like this.

995
00:46:06,360 --> 00:46:08,960
Speaker 1: Certainly have had beers that have had heat. This one

996
00:46:09,000 --> 00:46:10,960
Speaker 1: didn't have as much heat, but it had more of that,

997
00:46:11,040 --> 00:46:13,360
Speaker 1: like that green hatch chili flavor going on. Yeah, I

998
00:46:13,400 --> 00:46:15,399
Speaker 1: thought it added a lot, And yeah, I know yours

999
00:46:15,560 --> 00:46:17,960
Speaker 1: was slightly different cult I guess, yeah, based on the

1000
00:46:18,320 --> 00:46:20,920
Speaker 1: way you pour a beer out of a cab. We

1001
00:46:21,000 --> 00:46:22,440
Speaker 1: try to go back and forth, and that way we

1002
00:46:22,600 --> 00:46:26,919
Speaker 1: we get in uh equal equally you know, sedimenty beer

1003
00:46:27,800 --> 00:46:29,520
Speaker 1: in my case that I I guess I got all

1004
00:46:29,520 --> 00:46:31,640
Speaker 1: the sediment, but I thought mine did have like a

1005
00:46:31,719 --> 00:46:33,480
Speaker 1: nice chili flavor going on, and and it kind of

1006
00:46:33,600 --> 00:46:36,399
Speaker 1: like reminded me of corn bread a little bit, oh

1007
00:46:36,800 --> 00:46:39,279
Speaker 1: which with a little howepenio slices in it. Love me

1008
00:46:39,320 --> 00:46:41,440
Speaker 1: some good cornbread, all right. And I just think that

1009
00:46:41,520 --> 00:46:43,960
Speaker 1: we should be putting peppers in beer more often. It's

1010
00:46:43,960 --> 00:46:45,279
Speaker 1: one of those things where I'm like, yeah, give me

1011
00:46:45,320 --> 00:46:47,360
Speaker 1: more beers with peppers in them. And like one of

1012
00:46:47,400 --> 00:46:50,200
Speaker 1: my all time favorites I had recently again from Wrecking Bar.

1013
00:46:50,600 --> 00:46:53,759
Speaker 1: It's there. They're Sinco dise Siberius Maximus or whatever. It's

1014
00:46:53,760 --> 00:46:55,520
Speaker 1: a Russian Imperial style with peppers in it, and it's

1015
00:46:55,560 --> 00:46:57,520
Speaker 1: got more of a kick than this, but um, it

1016
00:46:57,600 --> 00:46:59,120
Speaker 1: was kind of nice just to have like a laid

1017
00:46:59,120 --> 00:47:01,600
Speaker 1: back blonddail with some peppers going in there too, just

1018
00:47:01,680 --> 00:47:03,800
Speaker 1: to kind of shake things up. And yeah, really I

1019
00:47:03,920 --> 00:47:05,960
Speaker 1: liked it. It really worked with this specific style of

1020
00:47:06,040 --> 00:47:08,600
Speaker 1: beer as well, like with the Sinko Day Siberius. It's

1021
00:47:08,640 --> 00:47:11,520
Speaker 1: a I mean it's hot, like it's spicy, uh, and

1022
00:47:11,600 --> 00:47:13,719
Speaker 1: it varies months a month, so I've had it before

1023
00:47:13,760 --> 00:47:16,040
Speaker 1: where I could barely finish it because the peppers at

1024
00:47:16,080 --> 00:47:18,920
Speaker 1: they stuck in that thing, we're so fresh and spicy,

1025
00:47:19,200 --> 00:47:20,759
Speaker 1: Whereas this I felt like it was more of like

1026
00:47:20,840 --> 00:47:23,640
Speaker 1: the just that mild flavor, which I felt like went

1027
00:47:23,760 --> 00:47:25,719
Speaker 1: well with the blonde Dale is just kind of real chill,

1028
00:47:25,840 --> 00:47:28,800
Speaker 1: laid back versus if when you've got some heat in

1029
00:47:28,840 --> 00:47:31,840
Speaker 1: the beer, I think having some sweetness the balance with

1030
00:47:31,920 --> 00:47:33,879
Speaker 1: it goes a long way. And I think that's that's

1031
00:47:33,880 --> 00:47:37,120
Speaker 1: where the Sinko Day, Siberius, that's where that one, that

1032
00:47:37,200 --> 00:47:39,879
Speaker 1: one really shines. But yeah, big thanks to your brother

1033
00:47:39,920 --> 00:47:42,200
Speaker 1: in law for donating this one to the show again

1034
00:47:42,239 --> 00:47:45,680
Speaker 1: by Cross Phone Brewing Company, So if you're ever in Memphis,

1035
00:47:46,120 --> 00:47:48,200
Speaker 1: check them out. All right, Matt, that's gonna do it

1036
00:47:48,320 --> 00:47:51,320
Speaker 1: for this episode. For listeners who want show notes links

1037
00:47:51,360 --> 00:47:54,640
Speaker 1: to anything that we mentioned on this episode, you can

1038
00:47:54,640 --> 00:47:56,480
Speaker 1: find those up on our website at how to money

1039
00:47:56,600 --> 00:47:59,440
Speaker 1: dot com. That's right, and a quick thing. Again, we

1040
00:47:59,520 --> 00:48:02,359
Speaker 1: we've mentioned this previously, but a reminder for folks if

1041
00:48:02,360 --> 00:48:05,000
Speaker 1: you listen to us on Spotify, a reminder that you

1042
00:48:05,080 --> 00:48:07,920
Speaker 1: can head over there and rate our show, So we

1043
00:48:07,960 --> 00:48:10,799
Speaker 1: would appreciate a solid rating over there, and of course

1044
00:48:10,840 --> 00:48:13,840
Speaker 1: for everyone else who listens elsewhere, a solid rating and

1045
00:48:13,960 --> 00:48:18,160
Speaker 1: review over at Apple Podcasts would help immensely. Joel, that's

1046
00:48:18,160 --> 00:48:20,319
Speaker 1: gonna be a buddy for this episode until next time.

1047
00:48:20,560 --> 00:48:22,399
Speaker 1: Best Friends, best Friends Out