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Speaker 1: Welcome to Had of Money. I'm Joel, and I am that,

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

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Speaker 2: Happy Monday, everybody. Hopefully everyone's feeling nice and refreshed this

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Speaker 2: Monday after you got that extra extra hour of sleep yesterday,

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Speaker 2: fall back feeling very tripper, are you?

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Speaker 3: Well?

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Speaker 1: Yeah, but I'm not excited about the lack of sunlight.

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Speaker 2: In the after in the evening. Yeah, in the because

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Speaker 2: in the morning it's great because it's actually brighter, and I,

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Speaker 2: as I enter into middle to older age, Joel, I

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Speaker 2: get up earlier than I ever have before, and so

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Speaker 2: I congratulation. Actually, I totally dig it. The fact that,

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Speaker 2: like I'm dropping the kids off in the morning is

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Speaker 2: like still dark. That's what was going on last week. Yeah,

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Speaker 2: I don't like that, so, but I also understand that

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Speaker 2: you want to get your runs in, you're gonna start

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Speaker 2: like running in the middle of the day.

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Speaker 1: I guess I might have to. What if we were

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Speaker 1: I hate running in like the super cold, so the

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Speaker 1: you know, next.

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Speaker 2: Warmer in the middle of the day. Yeah, and it's lighter.

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Speaker 2: How about after we hit stop on the record, you

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Speaker 2: throw some running shoes on, get back out there. Then you. Uh,

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Speaker 2: if you need to, you can just work later, just

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Speaker 2: get time shifting.

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Speaker 1: Yeah, for real, just take advantage of the best hours

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Speaker 1: of the day for whatever the most important. Totally. Yeah,

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Speaker 1: you can away on a laptop on the stark outside.

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Speaker 2: Otherwise you're gonna get stuck running on a treadmill, which

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Speaker 2: never gonna not gonna do that. No, No, that's not

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Speaker 2: how you roll. But this is Monday. We've got listener

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Speaker 2: questions to get to. A listeners wanting to know what

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Speaker 2: to do about rising car insurance premiums, as that is

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Speaker 2: something that we have seen increase lately. Someone else is

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Speaker 2: tackling the rent versus by dilemma, and again, given rising prices,

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Speaker 2: this is something that's on a lot of folks' minds.

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Speaker 4: Uh.

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Speaker 2: And we've got a question about socking away money for kids.

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Speaker 2: What is the best way to approach this. We'll give

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Speaker 2: our thoughts on these questions and more during today's episode.

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Speaker 2: Nice variety. Yeah, but what's you got for me? You

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Speaker 2: got a little note here about just as that you're

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Speaker 2: going to say something.

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Speaker 1: Okay, So I got a really interesting letter in the

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Speaker 1: mail recently. I think I've shared this on the podcast before.

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Speaker 1: My last full time real job came with a pension attached.

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Speaker 1: And before you say, oh, congratulations, rich guy, it's not

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Speaker 1: quite as good as you as you might think, because

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Speaker 1: I wasn't there that long, and too many of those

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Speaker 1: years I wasn't making much money, and so the pension

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Speaker 1: is is rather meager, but it's better still than not

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Speaker 1: having a pension at all, rich guy.

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Speaker 2: Problems is what's got over here? What do I do

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Speaker 2: with this pension?

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Speaker 1: I know as I cry into my Benjamin's rubbed them

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Speaker 1: on my face. So I get this letter in the

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Speaker 1: mail basically saying hey, listen, And I was wondering if

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Speaker 1: this was going to come. I actually assumed at some

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Speaker 1: point it would really just didn't know when. But this

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Speaker 1: was a letter saying, hey, do you want to take

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Speaker 1: a lump sum, take a big chunk all at one

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Speaker 1: point in time, or or would you rather wait till

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Speaker 1: you're sixty five and have this guaranteed monthly payments? And

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Speaker 1: so part of me thinks to take us through your

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Speaker 1: your matrix, your decision matrix, decision process. So the fiscally

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Speaker 1: responsible human inside of me, Matt says, delayed gratification for

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Speaker 1: the win, and that if I punt until later. I'm like, okay,

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Speaker 1: it's it's and I'll tell I don't mind sharing the numbers.

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Speaker 1: It's basically forty grand now in one lump sum or

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Speaker 1: I think it was like eight hundred and fifty bucks

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Speaker 1: a month starting at age sixty five, for the rest

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Speaker 1: of your life, for the rest of your life. Oh yeah,

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Speaker 1: so till the day I die. So would you put

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Speaker 1: in the day that you die year? As you're getting

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Speaker 1: your calculations, I was like, I'm probably gonna live to

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Speaker 1: one twenty, so you.

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Speaker 2: Should definitely take the monthly payoff.

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Speaker 3: Right.

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Speaker 1: If that was the case, then maybe so, but actually

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Speaker 1: actually probably not. Even so, when I ran the numbers,

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Speaker 1: and I enlisted a friend for help to do this,

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Speaker 1: because man, I'm so bad with the details sometimes and

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Speaker 1: math is not my forte.

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Speaker 2: But it's certainly didn't enlist me. I'm good with the numbers.

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Speaker 1: You argue with the numbers, I should have asked you, Yeah,

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Speaker 1: who'd you list? I'm not going to tell you that, Okay, okay, jerk.

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Speaker 1: So I ran the numbers, and when you think about

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Speaker 1: just average market returns or just even a bit below that,

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Speaker 1: if you say, listen, I'm gonna earn seven percent annually

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Speaker 1: on this forty grand. If I were to take a

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Speaker 1: lump sum instead of taking that one hundred and fifty

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Speaker 1: month when I turned sixty five, I'm gonna have far

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Speaker 1: more money to play with if I take the lump sum.

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Speaker 1: But the key, of course, is that I don't just

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Speaker 1: take a lump sum and use it on stuff for

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Speaker 1: the here and now, is to invest that money for later.

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Speaker 1: So one of the options you can do with the

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Speaker 1: lump sum pension payout is to stick it into my

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Speaker 1: roth IRA. So what I'm gonna do, Matt, That's what

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Speaker 1: I'm gonna do. I've decided I'm gonna pay some tax

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Speaker 1: on that, because if I were to roll it into

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Speaker 1: a traditional IRA, I wouldn't have to pay any tax.

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Speaker 1: But I'm willing to pay the tax man now to

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Speaker 1: have that money used or considered as wroth money. Rates

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Speaker 1: are low, that's right, That's right. So I'm doing that now,

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Speaker 1: paying the known quantity, which is the taxation in the

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Speaker 1: here and now, and I'll have more money, more wroth

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Speaker 1: money compounding for decades. That forty thousand is going to

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Speaker 1: be a heck of a lot more by the time

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Speaker 1: I reached my sixties, all right.

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Speaker 2: So I got a question for you. Well, I will

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Speaker 2: say this makes sense because if you are disciplined, I

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Speaker 2: think the lumps like oftentimes it does make more sense

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Speaker 2: when you actually run the numbers, like as also proved

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Speaker 2: by lottery winners on the opposite end of the spectrum,

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Speaker 2: which typically it's something that you've gained by happen chain

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Speaker 2: like by luck. Right, and so there wasn't necessarily this

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Speaker 2: muscle that was exercised, and so oftentimes that's why you

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Speaker 2: see lottery winners without much money and in their case

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Speaker 2: probably like installments would have been better for them. Right,

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Speaker 2: But you are a disciplined individual. Yeah, I'm never going

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Speaker 2: to touch the money. I'm literally funding it, funneling it directly.

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Speaker 1: Well why not?

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Speaker 2: So given that, Yeah, like I'm sure you know, I

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Speaker 2: know that you are doing a great job when it

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Speaker 2: comes to investing. It's not like you are struggling to

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Speaker 2: set sock money away for retirement. Did you consider pulling

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Speaker 2: some of the chips off the table and using that

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Speaker 2: to fund your your rivian fund whatever it is that

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Speaker 2: you want to spend.

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Speaker 1: Well, that's still a potential in the future, and and

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Speaker 1: maybe I will redirect future investment dollars because but I

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Speaker 1: was thinking that these are these are retirement dollars anyway,

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Speaker 1: that's what they were earmarked for. I mean, okay, we're

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Speaker 1: previously Yeah, I'm keep them earmarked for that and if

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Speaker 1: I want to get that reduce future contribution so I

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Speaker 1: can fund a little bit more of hear and now

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Speaker 1: money towards the rivn R two when it comes out,

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Speaker 1: or I don't know, maybe that scout that the electric Scout. Yeah,

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Speaker 1: one of those. They looked really good.

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Speaker 2: I will say I just saw an EV nine, So

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Speaker 2: the Kiya EV nine. I saw one of those on

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Speaker 2: the road parked yesterday, so I got to do a

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Speaker 2: full three sixty look around at it. As I was,

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Speaker 2: I was checking it out. Those things like like they're

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Speaker 2: from the future. Yeah, Like I dig how some of

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Speaker 2: these other EV's, but I feel like, head what they're doing.

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Speaker 1: It looks really cool. I like the retro kind of

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Speaker 1: the retro is nineteen sixty seventies. That is the coolest look.

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Speaker 1: I like like they're bringing that back in the sub

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Speaker 1: body in the sub body style.

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Speaker 2: Yeah.

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Speaker 1: But yeah, so for the time being, this is gonna

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Speaker 1: be wroth money and enough. I would say to anybody

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Speaker 1: out there who gets one of these letters in the mail,

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Speaker 1: Who's like, wait, I had a pension. I forgot about that.

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Speaker 1: I remembered. I knew it was coming, I just didn't

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Speaker 1: know when. And Yeah, instinctually, as someone who thinks long term,

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Speaker 1: you might say, I'm gonna pump this off and take

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Speaker 1: the known payments. But if you invest those those dollars yourself,

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Speaker 1: if you got the discipline to do it, you might

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Speaker 1: find yourself coming out ahead. Yeah, it depends on your

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Speaker 1: financial situation. And also, by the way, that's a there's

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Speaker 1: a risk in that too. Yes, it's not guarantee about it.

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Speaker 1: It's not guaranteed. And I was saying, it's that payment

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Speaker 1: and when I'm saving sixty five is guarantees guaranteed.

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Speaker 2: If you find yourself in a similar situation, send it

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Speaker 2: our way. This would be something that Joel and I

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Speaker 2: would love to talk about on a future Ask How

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Speaker 2: to Money episode.

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Speaker 1: You know, Matt's so sad he didn't get to run

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Speaker 1: the numbers and now he wants to run some numbers.

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Speaker 1: So all right.

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Speaker 2: During our episode today, we are enjoying a stranger danger,

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Speaker 2: which is a bourbon barrel aged peanut butter cup Imperial

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Speaker 2: Milk stout by Monday Night Brewering. This is the kind

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Speaker 2: of beer that you expect in your treat bag after

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Speaker 2: how a trick or treating.

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Speaker 1: That's right. Last week, I was assuming that the guys

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Speaker 1: over at Monday Night just took their kids leftover Reese's

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Speaker 1: peanut butter cups toss them into the beer as they

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Speaker 1: were making it in order to get these vibes. But yeah,

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Speaker 1: we'll give our thoughts on this one at the end

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Speaker 1: of the episode. We will. And if you have a

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Speaker 1: money question, whether it's pension related or something else, we

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Speaker 1: would love to hear it. Just go to how tomoney

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Speaker 1: dot com slash ask for the simple directions. But basically,

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Speaker 1: you're just recording to voice memo on your phone. You're

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Speaker 1: sending it to us via email. We'll hopefully take it

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Speaker 1: next week on the show, Matt, let's get to a question.

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Speaker 1: A listener wants to know what to do about the

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Speaker 1: ridiculously high cost of car insurance.

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Speaker 5: Hi, met Jeel, this is Andrew from Portland, Oregon. I

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Speaker 5: have an insurance in free for you, but first I

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Speaker 5: feel like I have to mention that you guys should

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Speaker 5: really prioritize a visit out here to Portland. At some point,

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Speaker 5: I live walking distance to three that of won gold

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Speaker 5: medals at the Great America Beer Fest, and they're a

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Speaker 5: handful of others just in easy biking distance. So anyway,

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Speaker 5: on to the question. A year ago, in August so

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Speaker 5: twenty twenty three, our Toyota four Runner was rear ended

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Speaker 5: while parked on the street. It was a hit and run,

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Speaker 5: so we submitted a claim and Farmers declared the car

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Speaker 5: total to the age of the vehicle. We used the

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Speaker 5: eleven thousand dollars check plus money from savings to buy

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Speaker 5: a new Subaru. I know insurance costs have increased a lot,

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Speaker 5: but ours feel really, really high. I'm about to pay

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Speaker 5: just over two thousand dollars for six months of coverage.

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Speaker 5: We do have another car at twenty seventeen REP four,

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Speaker 5: so that's included. I tried talking to our agent, but

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Speaker 5: even things like upping the dead deductible really didn't move

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Speaker 5: the needle. So I'd like to start shopping around, but

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Speaker 5: I remember hearing you guys say that once you start

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Speaker 5: shopping it can trigger premium increases. Also, since I submitted

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Speaker 5: a claim just over a year ago, will that have

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Speaker 5: an impact any advice you have would be great. Just

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Speaker 5: for additional context. I have all my property insurance with

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Speaker 5: Farmers Home to rental properties Umbrella and the auto coverage

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Speaker 5: thanks a lot.

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Speaker 1: Well, Matt, Portland, Oregon. That's a town of my birth.

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Speaker 1: So it's been a since I've been to the Pacific Northwest.

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Speaker 1: But I think I actually am going to come back

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Speaker 1: up next summer. My cousin's getting married.

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Speaker 2: So oh fun. It's a good reason to take a trip.

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Speaker 2: It is well, Andrew, I am sorry to hear about

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Speaker 2: that hit and run. That just sucks. That is an

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Speaker 2: awful experience, and for you, partly because of this. For

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Speaker 2: one thousand dollars a year, man that it's quite a

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Speaker 2: lot to pay for car insurance for a couple of cars.

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Speaker 2: You know, it's not like he's got a teenage son

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Speaker 2: or something like that that might have caused his rates

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Speaker 2: to go up. But the first thing I would say is,

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Speaker 2: and this is like, how the money disclaimer? Do you

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Speaker 2: actually need that second car? Like, I know you just

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Speaker 2: bought it, and so you probably there's a depreciation hit

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Speaker 2: that you took. But at some point the cost of owning,

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Speaker 2: of operating, and of course of insuring a car becomes

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Speaker 2: enough to consider alternatives.

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Speaker 1: I'm just in what we've seen Matt over the last

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Speaker 1: couple of years with rises and insurance rates. I feel

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Speaker 1: like the insurance used to be this kind of sliver

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Speaker 1: of the pie, and now it's becoming a much larger chance.

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Speaker 2: Well, everything's just more expensive here, right, I mean the

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Speaker 2: cost of vehicles, but also insurance. We're certainly seeing that.

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Speaker 2: But I just want to put that out there because

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Speaker 2: Andrew he even said that, He's like, man, I've got

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Speaker 2: breweries that are close enough to bike to. He's not

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Speaker 2: afraid to bike, right, But have you thought to expand

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Speaker 2: that to say bike in to work? Because I think

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Speaker 2: for a lot of folks they think about biking as

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Speaker 2: this like a leisure activity. It's like, well, no, I

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Speaker 2: bike to the brewery because that's fun. Guys, I don't

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Speaker 2: have to bike to work. But I think there's some

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Speaker 2: significant saving rain in Portland. But there's ways to do it.

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Speaker 2: And it's been a while since we've shared this tip.

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Speaker 2: But like on the weekend, when there isn't a ton

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Speaker 2: of traffic, when you're not trying to get to work

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Speaker 2: by a certain time, if it is possible at all

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Speaker 2: for you to bike to work route that tripe it looks,

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Speaker 2: see what it's like. And I think even just doing

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Speaker 2: it once on the weekend can remove this mental hurdle

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Speaker 2: of you thinking that you know, I can't bike to work.

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Speaker 2: Oh wait a minute, In fact, I can bike to work.

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Speaker 2: It's totally possible. And there's significant savings to be had too.

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Speaker 1: And when you think about it, Matt and I don't know,

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Speaker 1: he'd have to run introutter run the numbers here, but

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Speaker 1: he's talking about four hundred dollars a month and insurance

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Speaker 1: costs alone, car insurance costs alone. And so let's say

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Speaker 1: you eliminate one of those cars from your life and

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Speaker 1: you save two hundred bucks a month. Think about having

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Speaker 1: twenty five hundred bucks a year to put towards your

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Speaker 1: biking accouterments or whatever. And not to mention the fact

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Speaker 1: that you sold your car. You have all that money

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Speaker 1: back in your life. You can make other moves with

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Speaker 1: that money. So I think it's yeah, it's at least

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Speaker 1: worth considering do we need to have two cars? I

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Speaker 1: think more people should put a car in their driveway

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Speaker 1: on the chopping block, but let's talk about shopping around. Yes,

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Speaker 1: it can be annoying, but it can also be well

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Speaker 1: worth the time, right, even if you only say what Matt,

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Speaker 1: the commercials typically say, fifteen minutes will save fifteen percent

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Speaker 1: or more Geico.

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Speaker 2: That is Geico, which is not likely to be the

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Speaker 2: best place for you to go, right, I mean, it

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Speaker 2: might be.

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Speaker 1: It's worth getting a quote from them, but it's worth

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Speaker 1: getting a quote from a lot of other people. The

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Speaker 1: truth is fifteen minutes could save you fifteen percent, but

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Speaker 1: you probably need to shop with a few different companies,

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Speaker 1: not just the Gecko one. But yeah, if you save

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Speaker 1: fifteen percent a year, that'd be six hundred dollars, which

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Speaker 1: is a lot of money. So it's worth the time

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Speaker 1: and that money could you could save that money not

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Speaker 1: just for one year, but for multiple years moving forward.

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Speaker 1: And we mentioned this site actually pretty regularly after I

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Speaker 1: believe it was listener Nate Matt.

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Speaker 2: Told us about this memory.

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Speaker 3: You know.

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Speaker 1: Yeah, he told us about a site. He's an independent

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Speaker 1: insurance agent, and he said, you can find a good

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Speaker 1: one near you at a site called trusted choice dot

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Speaker 1: com and then let that independent insurance agent do the

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Speaker 1: shopping for you. So maybe you spend fifteen minutes literally

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Speaker 1: to find a good independent agent, then they spend the

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Speaker 1: hour or two to shop around for you on your behalf.

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Speaker 1: And I would just suggest to get quotes for different

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Speaker 1: deductible levels with these different insurance companies because you might

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Speaker 1: find that the savings are starker if you raise your

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Speaker 1: deductible with other insurance companies. You've got to have the

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Speaker 1: cash right in the bank to self insure for more

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Speaker 1: minor incidents. But still that advice, well, maybe it didn't

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Speaker 1: pay off with your current insurance company, it could pay

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Speaker 1: off with another one.

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Speaker 2: Yeah. And then Andrew, you mentioned filing the claim for

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Speaker 2: that hit and run, which I'm going to say this

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Speaker 2: was the right thing to do given the extent of

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Speaker 2: the damage. And I think that's certainly a part of

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Speaker 2: why your premiums have gone up. And this is why

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Speaker 2: we advise folks to opt for higher deductibles and to

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Speaker 2: avoid claims whenever possible, because oftentimes it will lead to

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Speaker 2: higher premiums.

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Speaker 1: That goes on your clue report map.

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Speaker 2: Yeah, there are obviously instances where we need to use

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Speaker 2: our insurance and this is one of them. But for

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Speaker 2: everyone else, your insurance sparingly is going to save you.

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Speaker 2: The increased premiums is going to keep that claim off

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Speaker 2: of your clear report, but other insurance companies, because of

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Speaker 2: the fact that you made this claim Andrew, other insurance

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Speaker 2: companies are going to know about this claim as well,

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Speaker 2: and it's almost inevitably factor into the quote that other

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Speaker 2: insurance companies give you for coverage. And so just letting

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Speaker 2: you know that most likely, Yes, industry wide premiums have

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Speaker 2: been going up, but for you specifically, it's a lot

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Speaker 2: of money for He's seeing four thousand dollars a year,

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Speaker 2: is that right? I'm paying And granted we only have

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Speaker 2: one car and it's and it's older, and we live

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Speaker 2: in a very different region part of the country. But

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Speaker 2: I'm paying twelve hundred dollars for the year, which again

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Speaker 2: I don't know. I'm just throwing this out there. To

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Speaker 2: pay seventeen hundred for the year. I have two cars

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Speaker 2: keet their old true vehicles. Yeah, and so new of

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Speaker 2: your cars are. And that's the thing too, is we

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Speaker 2: don't have full coverage I don't think on either vehicle

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Speaker 2: at this point. That's one of the ways that you

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Speaker 2: can reduce coverage because of the fact that we have

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Speaker 2: older vehicles. It's going to be easier for us to

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Speaker 2: replace those were we to get an accident and it

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Speaker 2: was our fault because of the that collision is something

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Speaker 2: that we've not opted for.

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Speaker 1: Yeah, but that's a tougher thing to do to take

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Speaker 1: off collision of comprehensive even if you own the car outright,

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Speaker 1: if the car is worth a whole lot more like

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Speaker 1: I wouldn't want to do that if if my car

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Speaker 1: is worth twenty twenty five thirty grand, which.

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Speaker 2: You get your fancy ev Yeah, you're probably gonna add

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Speaker 2: collision back on.

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Speaker 1: Insurance number of years, that's right. But man, I think

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Speaker 1: just because he filed this claim, Andrew filed this claim,

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Speaker 1: and just because it's on his clue report doesn't mean

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Speaker 1: he's like ineligible to shop around. I think sometimes people think, oh,

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Speaker 1: I file a claim in the last year, so might

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Speaker 1: as well not even bother. The truth is, you still

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Speaker 1: might be able to reduce the premium amount that you're

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Speaker 1: paying without skimping on coverage by moving to another insurance provider.

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Speaker 1: And I highlight this too, keeping the insurance coverage the

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Speaker 1: same mats. Some people opt to reduce their coverage and

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Speaker 1: have less insurance, but that can actually put you at

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Speaker 1: greater risk in the long run by just not being

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Speaker 1: covered to the extent that you need. Right, It's it's

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Speaker 1: worth prodding to see what other discounts might be available

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Speaker 1: with other insurance companies in with your current one too.

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Speaker 1: I consider having your driving monitor to save even more,

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Speaker 1: I think, Matt. Last time I suggested this, I felt

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Speaker 1: like rotten tomatoes were getting thrown at me from the

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Speaker 1: how to Money peanut gallery from the people who listen.

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Speaker 1: They let them hate this is a great way to

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Speaker 1: save money. They don't love the idea of trading their

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Speaker 1: privacy for potential saving.

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Speaker 2: See. I'm kind of like a privacy dude, Like I

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Speaker 2: pay attention to that kind of stuff, but I truly

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Speaker 2: don't care for these insurance companies to know like where

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Speaker 2: I'm going.

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Speaker 1: But so yeah, I do think it's worth kind of

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Speaker 1: barking up that tree, talking to an agent at your

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Speaker 1: current's insurance company or to another agent another insurance company,

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Speaker 1: and saying what additional discounts can I get? And Matt,

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Speaker 1: I just kind of like keep asking the question, and

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Speaker 1: it's almost like the magician pulling the thing out of

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Speaker 1: their throat, whatever the long string, and it just kind

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Speaker 1: of keeps coming out like typically there are more discounts

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Speaker 1: than they have notified you about upfront, and I would

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Speaker 1: be willing to just kind of keep asking until they're

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Speaker 1: able to get that price down, the premium price down significantly.

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Speaker 1: Another thing maut another low hanging for is taking a

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Speaker 1: defensive driving course. This is something I've done. You can

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Speaker 1: take them online. Usually takes about an hour, hour and

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Speaker 1: a half, maybe twenty five bucks of your money, and

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Speaker 1: that could save you two hundred and fifty bucks a year,

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Speaker 1: maybe more. And then this should go without saying, but

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Speaker 1: make sure your credit score is in good condition too,

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Speaker 1: because in most states that can impact you know what

402
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Speaker 1: you're paying for insurance, So pay attention to all those

403
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Speaker 1: peripherals because even just some of those with your current

404
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Speaker 1: insurance company, if you jump through a couple of different hoops,

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Speaker 1: you might be able to find that you're reducing your

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Speaker 1: insurance premiums by twenty twenty five percent just by taking

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Speaker 1: a few actions that won't take you too much time

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Speaker 1: at all.

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Speaker 2: Yes, right, and Andrew, you mentioned something about shopping around

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Speaker 2: about that triggering premium increases. That's actually not true. It's

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Speaker 2: not like shopping around for a mortgage where it's where

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Speaker 2: your credit is taking a soft hit. Your current and

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Speaker 2: sure won't raise your rates just because you're getting quotes

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Speaker 2: from other insurance companies. But you also mentioned having everything

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Speaker 2: under one roof. That is typically a great thing because

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Speaker 2: you're often able to qualify for more policy discounts that way.

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Speaker 2: So trying to bring all of your business over to

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Speaker 2: a new insurance company that can offer you a better price,

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Speaker 2: not just on your auto insurance, but on your range

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Speaker 2: of policies could save you even more. Even I think

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Speaker 2: he mentioned investment properties as well, so those dwelling fire

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Speaker 2: policies as well. Man, that's huge, and something that I've

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Speaker 2: been doing for a long time now is making sure

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Speaker 2: to pay those those premiums in full. So not like

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Speaker 2: he mentioned his amount just for six months, But how

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Speaker 2: much of a discount can you get by paying it

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Speaker 2: all at once. I went and checked before we sat

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Speaker 2: down to record here, Joel, and I get a solid fifteen,

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Speaker 2: like a hard fifteen percent discount really just because of

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Speaker 2: the fact that I paid it all up upfront of

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Speaker 2: the beginning of the year.

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Speaker 1: That's huge.

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Speaker 2: Took it from like that fourteen something one hundred for

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Speaker 2: the year down to twelve that's great. Yeah, so yeah,

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Speaker 2: keep that in mind as well.

436
00:18:45,920 --> 00:18:47,920
Speaker 1: And a lot of peoplet they pay on a recurring

437
00:18:47,960 --> 00:18:50,399
Speaker 1: monthly basis, they have it auto drafted from their account

438
00:18:50,480 --> 00:18:52,000
Speaker 1: or something like that. No, if you pay for it

439
00:18:52,040 --> 00:18:54,520
Speaker 1: in either a six month or one year chunk, typically, right,

440
00:18:54,520 --> 00:18:55,600
Speaker 1: the savings are significant.

441
00:18:55,680 --> 00:18:57,639
Speaker 2: Yeah, And that'd be a great way to take advantage

442
00:18:57,640 --> 00:18:59,680
Speaker 2: of a welcome offer from a credit card that's offered

443
00:19:00,080 --> 00:19:02,520
Speaker 2: sweet little perk. But we hope that you are able,

444
00:19:02,840 --> 00:19:05,440
Speaker 2: you know, despite your recent claim there with that total

445
00:19:05,520 --> 00:19:08,080
Speaker 2: fore runner, to find some savings out there on the

446
00:19:08,119 --> 00:19:10,480
Speaker 2: open market. And we hope that we've given you some

447
00:19:10,560 --> 00:19:13,520
Speaker 2: good ideas. Joel. We've got more to get to. We're

448
00:19:13,520 --> 00:19:17,160
Speaker 2: gonna talk about an easy source for the lowest utility costs.

449
00:19:17,200 --> 00:19:19,159
Speaker 2: We'll get to that and more right after this.

450
00:19:26,960 --> 00:19:28,600
Speaker 1: All right, Matt, we're back in just a second. We're

451
00:19:28,600 --> 00:19:30,480
Speaker 1: going to hear from a new parent who wants to

452
00:19:30,520 --> 00:19:32,520
Speaker 1: know about the pros and cons essentially of five to

453
00:19:32,560 --> 00:19:35,840
Speaker 1: twenty nine plans. But let's get to a question now, Matt.

454
00:19:36,160 --> 00:19:39,040
Speaker 1: This one is kind of a perpetual personal finance one,

455
00:19:39,359 --> 00:19:42,520
Speaker 1: but it's taken on a different tone these days. Renter,

456
00:19:42,560 --> 00:19:43,320
Speaker 1: should I buy.

457
00:19:43,800 --> 00:19:46,400
Speaker 4: Hey guys, my name is Anthony. JUST have a couple

458
00:19:46,480 --> 00:19:51,440
Speaker 4: questions regarding my financial situation and buying versus renting. Thirty

459
00:19:51,480 --> 00:19:54,520
Speaker 4: one years old, living with my girlfriend. We're renting in

460
00:19:54,520 --> 00:19:56,919
Speaker 4: a high cost of living area in New Jersey. I

461
00:19:57,000 --> 00:20:00,439
Speaker 4: make one hundred and forty K. I have about and

462
00:20:00,480 --> 00:20:04,480
Speaker 4: cash about sixty k, split evenly between four to one

463
00:20:04,560 --> 00:20:08,359
Speaker 4: K and a roth. IRA have seventy K, split evenly

464
00:20:08,440 --> 00:20:14,000
Speaker 4: between index funds and individual stocks. I have no major

465
00:20:14,040 --> 00:20:18,600
Speaker 4: debt besides fourteen km my student loans. The original plan

466
00:20:19,160 --> 00:20:24,119
Speaker 4: was to buy a place myself, but shortly after I

467
00:20:24,119 --> 00:20:27,040
Speaker 4: started taking my search seriously, that's when the market went

468
00:20:27,080 --> 00:20:31,960
Speaker 4: pretty insane. Interest rates skyrocketed. And it's in New Jersey,

469
00:20:31,960 --> 00:20:36,239
Speaker 4: it's not uncommon to still see places listed for six

470
00:20:36,359 --> 00:20:39,080
Speaker 4: hundred and seven hundred K going one hundred and twenty

471
00:20:39,160 --> 00:20:43,879
Speaker 4: k over asking. So I guess my question is how

472
00:20:43,880 --> 00:20:47,879
Speaker 4: am I doing overall financially at my age? And also

473
00:20:49,560 --> 00:20:52,119
Speaker 4: I'm kind of done with renting. I want to buy,

474
00:20:52,320 --> 00:20:55,760
Speaker 4: but it just seems unfeasible, and it just seems pretty

475
00:20:55,760 --> 00:20:59,399
Speaker 4: impossible to buy a place unless you have.

476
00:20:59,400 --> 00:20:59,920
Speaker 1: A lot of help.

477
00:21:01,119 --> 00:21:02,480
Speaker 4: I just want to see your thoughts.

478
00:21:02,520 --> 00:21:07,000
Speaker 2: Thank you, in advance, Anthony, the buying versus renting conundrum,

479
00:21:07,080 --> 00:21:09,199
Speaker 2: it is such a tough one right now. I know

480
00:21:09,320 --> 00:21:11,080
Speaker 2: for many out there, it feels like that they've missed

481
00:21:11,080 --> 00:21:12,920
Speaker 2: out on the ability to buy a home. It felt

482
00:21:12,920 --> 00:21:14,720
Speaker 2: like there was an open window for a period of

483
00:21:14,800 --> 00:21:16,960
Speaker 2: time there and that window has long been shut. Feels

484
00:21:16,960 --> 00:21:19,000
Speaker 2: like it's slammed on people's fingers and they're like ouch.

485
00:21:19,119 --> 00:21:21,440
Speaker 2: You know, it's really upsetting to think always trying to

486
00:21:21,440 --> 00:21:23,359
Speaker 2: buy a home a few years ago and now feels

487
00:21:23,359 --> 00:21:24,879
Speaker 2: like it's out of reach, whereas.

488
00:21:24,520 --> 00:21:25,240
Speaker 1: Before it wasn't.

489
00:21:25,240 --> 00:21:27,560
Speaker 2: And I totally understand because when you look at income

490
00:21:27,600 --> 00:21:29,879
Speaker 2: and it's risen something like thirty percent over the past

491
00:21:30,000 --> 00:21:31,840
Speaker 2: four and a half years, while the median home price

492
00:21:31,880 --> 00:21:34,800
Speaker 2: has gone up by eighty five percent, I get it.

493
00:21:34,960 --> 00:21:37,679
Speaker 2: That's a massive gap. There's a fairly clear line of

494
00:21:37,680 --> 00:21:38,760
Speaker 2: demarcation between.

495
00:21:38,520 --> 00:21:39,760
Speaker 1: Folks who bought a house.

496
00:21:39,800 --> 00:21:43,080
Speaker 2: Prior to twenty twenty one and those who bought since then.

497
00:21:43,160 --> 00:21:46,120
Speaker 2: Since prices have gone haywire, since interest rates have gone up,

498
00:21:46,440 --> 00:21:49,560
Speaker 2: and that locked in low rate, that home equity that

499
00:21:49,600 --> 00:21:52,120
Speaker 2: you've accrued has been a boon to your bottom line.

500
00:21:52,160 --> 00:21:55,800
Speaker 2: If you did buy previously, and if you kept renting. Yeah,

501
00:21:55,840 --> 00:21:58,880
Speaker 2: you've seen rents increase, although I will say not quite

502
00:21:58,920 --> 00:22:00,720
Speaker 2: as much over the past year and half of as

503
00:22:00,720 --> 00:22:03,919
Speaker 2: things I've corrected, But that means that you feel like

504
00:22:03,960 --> 00:22:05,800
Speaker 2: that the opportunity to buy has passed you.

505
00:22:05,880 --> 00:22:07,840
Speaker 1: The question I think you have to ask yourself is

506
00:22:08,320 --> 00:22:11,639
Speaker 1: at what cost am I doing this thing? Because buying

507
00:22:11,720 --> 00:22:13,399
Speaker 1: is not going to just set you back a massive

508
00:22:13,400 --> 00:22:15,720
Speaker 1: down payment. There is that it's going to cost you

509
00:22:15,760 --> 00:22:19,160
Speaker 1: more on an ongoing basis. Plus, you're gonna be responsible

510
00:22:19,200 --> 00:22:21,560
Speaker 1: for repairs and maintenance, so you're probably gonna have your

511
00:22:21,560 --> 00:22:23,960
Speaker 1: mortgage is going to be higher than your rent. You're

512
00:22:23,960 --> 00:22:27,800
Speaker 1: also going to have to set aside money besides the

513
00:22:27,800 --> 00:22:30,439
Speaker 1: down payment for repairs you want to make to the

514
00:22:30,440 --> 00:22:33,000
Speaker 1: home right So if you really really want to buy,

515
00:22:33,200 --> 00:22:35,440
Speaker 1: you're gonna have to be prepared for all of those

516
00:22:35,480 --> 00:22:38,000
Speaker 1: additional costs, and you're gonna have to be willing to

517
00:22:38,040 --> 00:22:41,439
Speaker 1: dedicate more of your financial resources towards housing. Basically a

518
00:22:41,520 --> 00:22:46,760
Speaker 1: higher percentage of your overall budget towards home expenses. That

519
00:22:46,800 --> 00:22:49,520
Speaker 1: means you might have to cut back on eating, out, entertainment, travel,

520
00:22:49,520 --> 00:22:52,040
Speaker 1: all those other categories that you might care about now,

521
00:22:52,240 --> 00:22:54,919
Speaker 1: and you might feel house poor. So you just have

522
00:22:55,000 --> 00:22:56,560
Speaker 1: to know that going into it and say is it

523
00:22:56,560 --> 00:22:57,240
Speaker 1: worth the trade off?

524
00:22:57,240 --> 00:22:59,439
Speaker 2: That's true, you might feel house poor, that is, unless

525
00:22:59,440 --> 00:23:01,880
Speaker 2: you move to a lotion where costs are cheaper, where

526
00:23:01,920 --> 00:23:04,679
Speaker 2: it's more affordable. Because one of the things he mentioned

527
00:23:04,720 --> 00:23:06,280
Speaker 2: is the fact that there that they live in a

528
00:23:06,359 --> 00:23:08,480
Speaker 2: high cost of living area. But what about moving to

529
00:23:08,560 --> 00:23:12,160
Speaker 2: a slightly less desirable area. And I know that kind

530
00:23:12,160 --> 00:23:15,359
Speaker 2: of goes against everything out there about what it is

531
00:23:15,400 --> 00:23:17,520
Speaker 2: that you deserve and kind of just like nobody wants

532
00:23:17,560 --> 00:23:19,080
Speaker 2: to do that, you know, like nope, like when you

533
00:23:19,119 --> 00:23:22,520
Speaker 2: are living in an area that's awesome, nobody really wants

534
00:23:22,520 --> 00:23:24,280
Speaker 2: to be like, Okay, let's move to this part of

535
00:23:24,320 --> 00:23:27,280
Speaker 2: town that we've never really been to before or doesn't

536
00:23:27,280 --> 00:23:28,480
Speaker 2: have the places I like to visit.

537
00:23:28,720 --> 00:23:31,760
Speaker 1: I get that, Hey, maybe we're just moving down south, honey,

538
00:23:31,800 --> 00:23:34,360
Speaker 1: and because it's just so much cheaper to buy. That's true,

539
00:23:34,520 --> 00:23:36,600
Speaker 1: my house in a less populated part of the country.

540
00:23:36,320 --> 00:23:38,240
Speaker 2: Maybe in the sun Belt, but even in New Jersey.

541
00:23:38,280 --> 00:23:40,720
Speaker 2: I think there might be parts of the state that

542
00:23:40,760 --> 00:23:43,159
Speaker 2: are less competitive. And maybe it's still close enough to

543
00:23:43,440 --> 00:23:47,040
Speaker 2: your work, maybe it's still close enough to family, or

544
00:23:47,080 --> 00:23:49,160
Speaker 2: even like you know, do you work from home full time,

545
00:23:49,200 --> 00:23:51,840
Speaker 2: because if so, maybe you would consider moving to an

546
00:23:52,000 --> 00:23:54,200
Speaker 2: entirely new market because you don't have to be there

547
00:23:54,400 --> 00:23:57,560
Speaker 2: on location anymore. Either way, saving up more money. That's

548
00:23:57,560 --> 00:24:00,560
Speaker 2: one way to get closer to your goal. Keep in mind,

549
00:24:00,560 --> 00:24:04,359
Speaker 2: the housing prices are rising simultaneously too, so it can

550
00:24:04,400 --> 00:24:06,800
Speaker 2: feel like it's almost like you're on this treadmill and

551
00:24:06,840 --> 00:24:09,879
Speaker 2: you're not making progress nearly as quickly as you want to,

552
00:24:10,000 --> 00:24:13,160
Speaker 2: or hold treadmills or at all. Like we've discussed, Joel

553
00:24:13,160 --> 00:24:15,200
Speaker 2: does not like treadmills. But one way to get off

554
00:24:15,200 --> 00:24:17,640
Speaker 2: that altogether and on the you know, onto the track,

555
00:24:17,720 --> 00:24:20,879
Speaker 2: is to look at more affordable units in your current area,

556
00:24:21,560 --> 00:24:24,160
Speaker 2: or just to look at an entirely different market altogether.

557
00:24:24,320 --> 00:24:26,000
Speaker 1: I think that's a really important point, man. I think

558
00:24:26,040 --> 00:24:28,760
Speaker 1: sometimes people people think, oh, I'm renting this this really

559
00:24:28,840 --> 00:24:31,320
Speaker 1: cool condo that's nine hundred and fifty square feet or

560
00:24:31,320 --> 00:24:33,199
Speaker 1: something like that, and maybe I'm going to look at

561
00:24:33,480 --> 00:24:36,040
Speaker 1: I'm looking at buying condo that that's really really similar.

562
00:24:36,080 --> 00:24:38,000
Speaker 1: And so if I'm going to do that, well, then

563
00:24:38,040 --> 00:24:41,400
Speaker 1: this is the price point. And what if you actually said,

564
00:24:41,560 --> 00:24:42,920
Speaker 1: you know what, to make this work, I'm going to

565
00:24:42,960 --> 00:24:45,080
Speaker 1: look at something that's one hundred thousand dollars cheaper, and

566
00:24:45,119 --> 00:24:46,640
Speaker 1: maybe it's not quite as big, maybe it's not quite

567
00:24:46,680 --> 00:24:48,800
Speaker 1: as nice. But if home ownership matters to you that much,

568
00:24:49,000 --> 00:24:51,119
Speaker 1: you're willing to make those trade offs. And if not,

569
00:24:51,320 --> 00:24:54,280
Speaker 1: you say, all right, I'm gonna just like be thankful

570
00:24:54,280 --> 00:24:56,119
Speaker 1: that I get to rent something a little bit fancier,

571
00:24:56,160 --> 00:24:58,919
Speaker 1: a little bit nicer. Renting actually makes it so that

572
00:24:58,960 --> 00:25:00,720
Speaker 1: I can afford sure nicer unit.

573
00:25:00,880 --> 00:25:03,200
Speaker 2: I think it also takes an honest assessment over what

574
00:25:03,280 --> 00:25:05,640
Speaker 2: you actually value, because I know, and I can speak

575
00:25:05,680 --> 00:25:08,920
Speaker 2: from personal experience here, but I remember, like the neighborhood

576
00:25:08,920 --> 00:25:10,480
Speaker 2: that we moved from, we thought we were going to

577
00:25:10,520 --> 00:25:12,639
Speaker 2: be there forever. But the things that attracted us to

578
00:25:12,720 --> 00:25:15,440
Speaker 2: that neighborhood initially back when we were younger in our twenties,

579
00:25:15,880 --> 00:25:17,959
Speaker 2: were not the things that we were taking advantage of.

580
00:25:18,000 --> 00:25:20,199
Speaker 2: And so when we first moved there, we love the

581
00:25:20,200 --> 00:25:22,720
Speaker 2: restaurants and the bars and the music scene. But guess what,

582
00:25:22,960 --> 00:25:25,000
Speaker 2: you start having kids, you don't really have time for

583
00:25:25,040 --> 00:25:27,800
Speaker 2: that quite as much. It's something that we still enjoyed, Joel,

584
00:25:27,840 --> 00:25:29,240
Speaker 2: but I wasn't willing to I.

585
00:25:29,240 --> 00:25:30,480
Speaker 1: Was going to say speak for yourself.

586
00:25:30,880 --> 00:25:33,080
Speaker 2: I'm still doing a dope music shows, all right, but

587
00:25:33,280 --> 00:25:35,120
Speaker 2: probably not was the last time you went to the earl?

588
00:25:35,200 --> 00:25:38,880
Speaker 2: You know, the ability to I guess, honestly, look at

589
00:25:38,880 --> 00:25:40,639
Speaker 2: how you're going to be spending your time in the future.

590
00:25:40,720 --> 00:25:43,040
Speaker 2: That could make that decision a little easier. Yeah, that's

591
00:25:43,040 --> 00:25:43,480
Speaker 2: all I'm saying.

592
00:25:43,480 --> 00:25:45,600
Speaker 1: I think, Yeah, I think you're right, And I know

593
00:25:45,680 --> 00:25:47,359
Speaker 1: that that like kind of what you're saying, Matt. It

594
00:25:47,359 --> 00:25:50,679
Speaker 1: can feel like a ridiculous assertion, but people have moved

595
00:25:50,720 --> 00:25:53,720
Speaker 1: for lesser goals, right, Yes, so I would say consider

596
00:25:53,800 --> 00:25:56,800
Speaker 1: if home ownership is a top tier goal, then you

597
00:25:56,800 --> 00:25:58,840
Speaker 1: know where you live and being a little more flexible

598
00:25:58,840 --> 00:26:00,919
Speaker 1: in those boundaries and a little more flexible on what

599
00:26:01,040 --> 00:26:03,639
Speaker 1: type of place you're willing to live in. That seems

600
00:26:03,800 --> 00:26:06,679
Speaker 1: reasonable to me. And Anthony has done a great job

601
00:26:06,960 --> 00:26:10,240
Speaker 1: of saving up. He might have enough cash to deploy

602
00:26:10,359 --> 00:26:12,360
Speaker 1: to buy a house that he's interested in if he's

603
00:26:12,359 --> 00:26:14,520
Speaker 1: willing to look in a less competitive area. And I

604
00:26:14,520 --> 00:26:16,480
Speaker 1: also want to ask the question, why are you so

605
00:26:16,560 --> 00:26:18,199
Speaker 1: intent on buying a home? And I don't mean this

606
00:26:18,240 --> 00:26:21,400
Speaker 1: as like you shouldn't buy a home. It's a terrible idea, Matt,

607
00:26:21,400 --> 00:26:24,040
Speaker 1: And I were homeowners. We're happy that we are, even

608
00:26:24,040 --> 00:26:27,000
Speaker 1: if it's not always in forever the best financial choice.

609
00:26:27,359 --> 00:26:30,480
Speaker 1: Could renting and keeping those monthly costs down help you

610
00:26:30,600 --> 00:26:34,560
Speaker 1: quickly achieve other financial goals by investing more in the market.

611
00:26:34,840 --> 00:26:37,400
Speaker 1: The answer to that for a lot of people is yes.

612
00:26:37,520 --> 00:26:40,560
Speaker 1: Like people who can be content as renters over a

613
00:26:40,560 --> 00:26:42,840
Speaker 1: long period of time might actually be able to see

614
00:26:42,880 --> 00:26:46,960
Speaker 1: more financial progress. Think about if you had invested handsomely

615
00:26:47,040 --> 00:26:49,520
Speaker 1: over the last three years money that you were otherwise

616
00:26:49,680 --> 00:26:52,320
Speaker 1: saving up for a down payment. Think about how well

617
00:26:52,320 --> 00:26:53,359
Speaker 1: that would have done in the market.

618
00:26:53,480 --> 00:26:53,680
Speaker 5: Right.

619
00:26:54,119 --> 00:26:56,400
Speaker 1: And we also want to mention that the housing market

620
00:26:56,840 --> 00:26:59,159
Speaker 1: it's not destined to keep going up at nauseum, like

621
00:26:59,200 --> 00:27:01,719
Speaker 1: we're seeing correction in some parts of the country that

622
00:27:01,800 --> 00:27:04,359
Speaker 1: have experienced massive price gains over the past few years.

623
00:27:04,680 --> 00:27:06,359
Speaker 1: We have no idea, Matt and I have no idea,

624
00:27:06,400 --> 00:27:09,320
Speaker 1: and I don't know that anybody does. Nobody knows right

625
00:27:09,400 --> 00:27:11,520
Speaker 1: how or when or if the housing market is going

626
00:27:11,560 --> 00:27:15,600
Speaker 1: to calm down. It's dependent on so many factors the macroeconomy, right,

627
00:27:15,880 --> 00:27:20,000
Speaker 1: stock market gains, employment, unemployment numbers. But patience is key.

628
00:27:20,200 --> 00:27:22,159
Speaker 1: Whether we're talking about finding a great deal in the

629
00:27:22,200 --> 00:27:26,119
Speaker 1: current market or waiting for competition and price hikes to

630
00:27:26,200 --> 00:27:29,879
Speaker 1: calm down a bit more. When how that happens impossible

631
00:27:29,880 --> 00:27:30,119
Speaker 1: to know.

632
00:27:30,200 --> 00:27:32,119
Speaker 2: Yeah, so our best device is to find the silver

633
00:27:32,240 --> 00:27:35,920
Speaker 2: lining in renting while you continue to amass even more

634
00:27:36,040 --> 00:27:38,919
Speaker 2: cash for that eventual purchase. I think being patient can

635
00:27:38,960 --> 00:27:40,640
Speaker 2: just feel like you're missing out, but this it could

636
00:27:40,640 --> 00:27:43,399
Speaker 2: also ensure that you don't make a bad home buying decision.

637
00:27:43,440 --> 00:27:45,080
Speaker 2: You're going to get to know the market even more.

638
00:27:45,640 --> 00:27:48,239
Speaker 2: But to Anthony, you also asked for an assessment of

639
00:27:48,280 --> 00:27:52,480
Speaker 2: your overall financial situation, and don't count the fact that

640
00:27:52,480 --> 00:27:54,320
Speaker 2: you don't own a home yet as like as a

641
00:27:54,359 --> 00:27:57,040
Speaker 2: downside because of the fact that, hey, you've got no

642
00:27:57,119 --> 00:28:00,600
Speaker 2: debt besides some small amount of student loans at age

643
00:28:00,640 --> 00:28:03,720
Speaker 2: thirty one, that's pretty huge. Your income is really solid

644
00:28:03,760 --> 00:28:06,960
Speaker 2: as well, and you are prioritizing investments. You've got sixty

645
00:28:07,040 --> 00:28:10,080
Speaker 2: thousand it sounds like in retirement accounts, maybe another seventy

646
00:28:10,080 --> 00:28:13,040
Speaker 2: in a brokerage account, so one hundred and thirty thousand overall,

647
00:28:13,080 --> 00:28:15,640
Speaker 2: which is great. We would only just like to see

648
00:28:15,720 --> 00:28:19,120
Speaker 2: maybe invest more within a higher percentage in your tax

649
00:28:19,119 --> 00:28:21,399
Speaker 2: advantage accounts. But maybe you're maxing that out and this

650
00:28:21,440 --> 00:28:23,320
Speaker 2: is all that you've got set aside over there, but

651
00:28:23,480 --> 00:28:26,880
Speaker 2: just maybe dabble less in individual stocks as well, would like.

652
00:28:26,800 --> 00:28:29,159
Speaker 1: Say half of his investments or individual stocks. Yeah, so

653
00:28:29,200 --> 00:28:30,280
Speaker 1: that's why I was worrying me a little.

654
00:28:30,320 --> 00:28:32,760
Speaker 2: That's why I'm assuming that he's got seventy thousand in

655
00:28:32,800 --> 00:28:35,679
Speaker 2: a brokerage, which is more tempting to do single stock investing,

656
00:28:35,760 --> 00:28:39,160
Speaker 2: especially if you opened a Robin Hood account four years ago.

657
00:28:39,240 --> 00:28:41,600
Speaker 2: I understand how he got there, but I just don't

658
00:28:41,640 --> 00:28:42,520
Speaker 2: necessarily like it.

659
00:28:42,560 --> 00:28:44,040
Speaker 1: And maybe you got lucky, maybe you stuck it all

660
00:28:44,040 --> 00:28:45,959
Speaker 1: in in video or something like that. But the average

661
00:28:46,000 --> 00:28:49,480
Speaker 1: person who is investing in individual stocks with that percentage

662
00:28:49,520 --> 00:28:53,800
Speaker 1: of their of their overall assets, they are underperforming the market.

663
00:28:53,520 --> 00:28:55,160
Speaker 2: Totally and appoint it too. He mentioned that he's got

664
00:28:55,200 --> 00:28:59,480
Speaker 2: one hundred thousand in cash, which congrats, that's huge. That's

665
00:28:59,520 --> 00:29:02,560
Speaker 2: way more than the average American has set aside. But

666
00:29:02,600 --> 00:29:05,080
Speaker 2: I think when you see like six figures in your

667
00:29:05,080 --> 00:29:06,760
Speaker 2: savings account, it can kind of feel like you're rich

668
00:29:06,960 --> 00:29:08,800
Speaker 2: and you're like, I've got plenty of money for a

669
00:29:08,800 --> 00:29:11,320
Speaker 2: down payment. But don't forget you need to make sure

670
00:29:11,360 --> 00:29:13,480
Speaker 2: that you've got enough margin. You need to maintain an

671
00:29:13,480 --> 00:29:16,400
Speaker 2: emergency fund at least maintaining three to six months worth

672
00:29:16,440 --> 00:29:19,720
Speaker 2: of living expenses. And so I don't know how detailed

673
00:29:19,760 --> 00:29:23,520
Speaker 2: your personal finance system is, but literally partitioning that money

674
00:29:23,520 --> 00:29:25,600
Speaker 2: aside so that you're not tempted to tap into that

675
00:29:25,640 --> 00:29:27,760
Speaker 2: because you don't want to take a big old bite

676
00:29:28,040 --> 00:29:30,320
Speaker 2: out of your emergency fund in order to like a

677
00:29:30,360 --> 00:29:33,080
Speaker 2: stretch down payment sort of thing. Not to mention other

678
00:29:33,680 --> 00:29:36,080
Speaker 2: savings goals that you might have as well. I know,

679
00:29:36,160 --> 00:29:38,200
Speaker 2: like when I was younger, I only had, like I

680
00:29:38,280 --> 00:29:42,320
Speaker 2: want to say, for the vacation car insurance. That's a

681
00:29:42,320 --> 00:29:44,560
Speaker 2: monthly amount. I saw it aside. But like literally today

682
00:29:44,560 --> 00:29:47,720
Speaker 2: I've got like around twenty five different savings goals, and

683
00:29:47,760 --> 00:29:50,520
Speaker 2: I'm a little more granular with the detail when it

684
00:29:50,520 --> 00:29:52,280
Speaker 2: comes to different things you want to save up for.

685
00:29:52,560 --> 00:29:54,760
Speaker 2: But don't forget all these other things in life that

686
00:29:54,800 --> 00:29:56,920
Speaker 2: you might want to save up for. But Anthony, it

687
00:29:56,960 --> 00:29:59,360
Speaker 2: sounds like your financial situation is looking pretty dang solid.

688
00:29:59,440 --> 00:30:01,280
Speaker 2: We just want you to keep looking for a deal

689
00:30:01,600 --> 00:30:04,080
Speaker 2: on a place. And you know, I hate to say this,

690
00:30:04,120 --> 00:30:05,880
Speaker 2: but try not to get too bombed in the meantime,

691
00:30:06,160 --> 00:30:08,280
Speaker 2: as it feels like you're missing out on what's going

692
00:30:08,320 --> 00:30:09,280
Speaker 2: on in the real estate market.

693
00:30:09,360 --> 00:30:11,680
Speaker 1: Yeah, I think just like keeping your eyes on the

694
00:30:11,720 --> 00:30:14,600
Speaker 1: market overall and on your specific market and maybe cashing

695
00:30:14,600 --> 00:30:16,160
Speaker 1: your net a little bit wider, you might be able

696
00:30:16,160 --> 00:30:19,520
Speaker 1: to find something that meets your goals and desires and

697
00:30:19,560 --> 00:30:22,000
Speaker 1: your budget. It just might take a minute to get that.

698
00:30:22,000 --> 00:30:22,400
Speaker 1: That's right.

699
00:30:22,480 --> 00:30:24,720
Speaker 2: Let's hear from another listener who's looking to save the

700
00:30:24,760 --> 00:30:26,840
Speaker 2: most on a recurring monthly expense.

701
00:30:27,880 --> 00:30:31,800
Speaker 3: Hey, Matt and Joel, this is Candice calling from East Point, Georgia.

702
00:30:32,560 --> 00:30:36,800
Speaker 3: I'm calling with a question about shopping around for utilities

703
00:30:37,040 --> 00:30:41,320
Speaker 3: as I'm coming up on my renewal for my gas provider.

704
00:30:41,800 --> 00:30:45,200
Speaker 3: Typically just go through Georgia Natural Gas, but I was

705
00:30:45,320 --> 00:30:50,720
Speaker 3: curious about switching on. I've looked into Zoom and Constellation

706
00:30:51,120 --> 00:30:55,120
Speaker 3: and a few more marketers, but just seems like a

707
00:30:55,160 --> 00:30:58,640
Speaker 3: lot of work, and they're all kind of saying the

708
00:30:58,680 --> 00:31:03,360
Speaker 3: same thing, all these sort of hidden but not hidden charges.

709
00:31:04,040 --> 00:31:09,000
Speaker 3: And then there's the fixed rate versus variable plan. And

710
00:31:09,480 --> 00:31:13,760
Speaker 3: historically I've done fixed rate for like six months because

711
00:31:13,800 --> 00:31:17,880
Speaker 3: typically that's the cheapest per therm. But then I'm finding

712
00:31:17,880 --> 00:31:20,920
Speaker 3: all these other fees and it's always going to be

713
00:31:21,000 --> 00:31:25,360
Speaker 3: Atlantic gas lights fees plus whatever the customer service charge

714
00:31:26,200 --> 00:31:30,920
Speaker 3: is for the other telemarketer that you use. So I'm

715
00:31:30,960 --> 00:31:34,240
Speaker 3: just curious if you think this is worth shopping around

716
00:31:34,240 --> 00:31:38,160
Speaker 3: and worth the pain of shopping around, and if there

717
00:31:38,200 --> 00:31:41,160
Speaker 3: are real savings there, or if it's something I can

718
00:31:41,240 --> 00:31:45,400
Speaker 3: kind of dedicate less time to researching and maybe look

719
00:31:45,440 --> 00:31:48,640
Speaker 3: for those savings somewhere else. Thanks for the pod. I

720
00:31:48,680 --> 00:31:50,800
Speaker 3: really love it and have learned a lot.

721
00:31:51,360 --> 00:31:54,920
Speaker 1: Oh, Matt, east Point an underrated little town just south

722
00:31:54,920 --> 00:31:55,360
Speaker 1: of Atlanta.

723
00:31:55,400 --> 00:31:56,200
Speaker 2: You like he's put a lot.

724
00:31:56,240 --> 00:31:58,040
Speaker 1: I do like East Point. I like one of my

725
00:31:58,280 --> 00:32:00,400
Speaker 1: rental properties is in East Point. My other in law

726
00:32:00,400 --> 00:32:01,800
Speaker 1: works right around the corner from there.

727
00:32:02,120 --> 00:32:04,040
Speaker 2: I got a lot of love for it. East Point

728
00:32:04,080 --> 00:32:08,080
Speaker 2: is where Frog Hollow? Is that the little neighborhood within

729
00:32:08,160 --> 00:32:08,560
Speaker 2: East Point.

730
00:32:08,640 --> 00:32:10,520
Speaker 1: Yeah, that's a cute little spot. And the great thing

731
00:32:10,520 --> 00:32:12,440
Speaker 1: about East Point MARTA runs there. So if you want

732
00:32:12,520 --> 00:32:15,040
Speaker 1: to know, yeah, yeah, because let's be on. I don't

733
00:32:15,040 --> 00:32:17,760
Speaker 1: know if I forgot about that Point is highly underrated. Yeah,

734
00:32:17,760 --> 00:32:20,600
Speaker 1: I agree. May listeners might not know that we have

735
00:32:20,840 --> 00:32:23,560
Speaker 1: actually we have a transit system here in the Atlanta area.

736
00:32:23,760 --> 00:32:26,080
Speaker 1: It's just really bad unless you live really close to

737
00:32:26,120 --> 00:32:28,000
Speaker 1: a station and work really close to a station. For

738
00:32:28,040 --> 00:32:31,400
Speaker 1: the most part, most locals don't take advantage of Marta.

739
00:32:31,640 --> 00:32:34,360
Speaker 1: It just wasn't well conceived at the beginning. But yeah,

740
00:32:34,680 --> 00:32:38,400
Speaker 1: underrated neighborhood. And I love that you're asking Candace about

741
00:32:38,400 --> 00:32:40,960
Speaker 1: shopping around for a utility provider. Matt George is not

742
00:32:41,000 --> 00:32:42,760
Speaker 1: the only state that does this. I think it's seventeen

743
00:32:42,800 --> 00:32:46,400
Speaker 1: states that have basically deregulated natural gas, which allows a

744
00:32:46,400 --> 00:32:48,720
Speaker 1: bunch of different companies, a bunch of different marketers to

745
00:32:48,800 --> 00:32:51,320
Speaker 1: offer different rates and terms to customers. And this is

746
00:32:51,360 --> 00:32:54,040
Speaker 1: the time of year where we're seeing ads all the

747
00:32:54,080 --> 00:32:57,800
Speaker 1: time trying to convince us to switch. And what Cannas

748
00:32:57,840 --> 00:32:59,440
Speaker 1: is asking in some part, is this too big of

749
00:32:59,480 --> 00:33:01,240
Speaker 1: a pain? Well, it is kind of a pain to

750
00:33:01,240 --> 00:33:02,920
Speaker 1: figure out if it's worth it and how much we

751
00:33:03,040 --> 00:33:05,800
Speaker 1: might save. Yeah, but I guess ultimately, we don't want

752
00:33:05,800 --> 00:33:07,320
Speaker 1: you to be brand loyal and we don't want you

753
00:33:07,360 --> 00:33:10,240
Speaker 1: to just stay put because it could cost you money.

754
00:33:10,280 --> 00:33:12,440
Speaker 2: Yeah, depending on the year and what's going on with

755
00:33:12,560 --> 00:33:15,560
Speaker 2: energy prices, you could stand to save a ton of

756
00:33:15,600 --> 00:33:16,760
Speaker 2: money or maybe just.

757
00:33:16,720 --> 00:33:17,200
Speaker 1: A little bit.

758
00:33:17,520 --> 00:33:20,760
Speaker 2: But our TLDR would be to shop around. But don't

759
00:33:20,760 --> 00:33:22,640
Speaker 2: spend too much time doing it. We got to find

760
00:33:22,640 --> 00:33:24,080
Speaker 2: a little bit of balance here. You said, is it

761
00:33:24,080 --> 00:33:26,479
Speaker 2: something I should do or should I focus on other

762
00:33:26,520 --> 00:33:27,280
Speaker 2: ways to save.

763
00:33:27,400 --> 00:33:29,240
Speaker 1: Yeah, if you spent like two weeks doing this, no,

764
00:33:29,520 --> 00:33:30,960
Speaker 1: say no, lest way too much effort.

765
00:33:31,000 --> 00:33:32,400
Speaker 2: Yeah, Like, if you just take the rate that your

766
00:33:32,440 --> 00:33:35,880
Speaker 2: current provider is offering when your fixed term is done,

767
00:33:36,120 --> 00:33:38,200
Speaker 2: you are going to be paying too much. But you

768
00:33:38,240 --> 00:33:41,840
Speaker 2: could also waste a ton of time shopping for a

769
00:33:41,960 --> 00:33:45,160
Speaker 2: slightly cheaper price per therm that might only save you

770
00:33:45,200 --> 00:33:48,000
Speaker 2: a few dollars over the course of a year. So yeah,

771
00:33:48,160 --> 00:33:49,520
Speaker 2: we do want you to shop. You need to be

772
00:33:49,560 --> 00:33:51,360
Speaker 2: proactive here, but don't do it in some sort of

773
00:33:51,880 --> 00:33:52,960
Speaker 2: like fanatical way. Yeah.

774
00:33:53,040 --> 00:33:55,080
Speaker 1: Yeah, there are certain things that are well worth shopping for,

775
00:33:55,400 --> 00:33:57,640
Speaker 1: something like your car insurance or home insurance. Like that

776
00:33:58,000 --> 00:34:00,800
Speaker 1: couple you know, couple of hours you put into it

777
00:34:00,840 --> 00:34:02,840
Speaker 1: could save you a ton of money over the course

778
00:34:02,880 --> 00:34:04,800
Speaker 1: of a year. Where this it's like the stakes are

779
00:34:04,840 --> 00:34:08,360
Speaker 1: smaller and you just talked about shopping around that there's

780
00:34:08,480 --> 00:34:11,080
Speaker 1: actually a one stop shop. There's a government website at

781
00:34:11,160 --> 00:34:12,520
Speaker 1: least in our state. I don't know about all the

782
00:34:12,560 --> 00:34:16,120
Speaker 1: other states that could help you figure out where the

783
00:34:16,160 --> 00:34:19,280
Speaker 1: best price is, and that place is the Public Service

784
00:34:19,600 --> 00:34:23,000
Speaker 1: Commission can just mentioned all the additional fees. It's true,

785
00:34:23,040 --> 00:34:25,760
Speaker 1: you can't just look at the price per firm, because

786
00:34:25,760 --> 00:34:27,839
Speaker 1: some providers are going to have extra fees that they

787
00:34:27,920 --> 00:34:31,280
Speaker 1: charge in the fine print that raised the overall bill higher.

788
00:34:31,680 --> 00:34:33,279
Speaker 1: Even though you thought you got the best price, you

789
00:34:33,280 --> 00:34:36,279
Speaker 1: actually didn't. So the PSSE actually puts out in what

790
00:34:36,320 --> 00:34:38,680
Speaker 1: they're called what they call an apples to apples comparison

791
00:34:39,000 --> 00:34:41,520
Speaker 1: that's well worth checking out. And again I'm not sure

792
00:34:41,560 --> 00:34:43,120
Speaker 1: if other states have this, but we'll link to the

793
00:34:43,120 --> 00:34:45,080
Speaker 1: one for Georgia in the show notes, and they do

794
00:34:45,120 --> 00:34:48,480
Speaker 1: a great job of highlighting the best overall value in

795
00:34:48,520 --> 00:34:51,120
Speaker 1: the natural gas base every single month. So then you're

796
00:34:51,160 --> 00:34:54,520
Speaker 1: comparing not just the advertised rate that they're saying, but

797
00:34:54,600 --> 00:34:57,440
Speaker 1: all those other fees combined, and the ps is saying, hey,

798
00:34:57,520 --> 00:34:59,920
Speaker 1: this is actually the marketer that has the best off

799
00:35:00,080 --> 00:35:02,399
Speaker 1: for right now for you. And they rate it based

800
00:35:02,400 --> 00:35:04,480
Speaker 1: on plans because you talked about fixed term or a

801
00:35:04,560 --> 00:35:07,520
Speaker 1: variable term offering to and they're going to slice and

802
00:35:07,560 --> 00:35:09,040
Speaker 1: dice them all up for you. There. Yeah, it's true.

803
00:35:09,080 --> 00:35:12,040
Speaker 2: I think all states have Public Service Commissions, but I

804
00:35:12,040 --> 00:35:14,080
Speaker 2: don't know. I don't think all states make it as

805
00:35:14,120 --> 00:35:16,440
Speaker 2: easy as Georgia does to be able to shop apples

806
00:35:16,480 --> 00:35:19,960
Speaker 2: to apples. Yeah, like I looked into it, So Maryland, Michigan,

807
00:35:20,040 --> 00:35:22,359
Speaker 2: they actually have a pretty good site where you can

808
00:35:22,400 --> 00:35:24,120
Speaker 2: also do that if you happen to be in those states.

809
00:35:24,320 --> 00:35:26,840
Speaker 2: But then, for instance, I looked into California and I

810
00:35:26,880 --> 00:35:29,399
Speaker 2: couldn't find any great resource. And there's actually a third

811
00:35:29,440 --> 00:35:31,919
Speaker 2: part party site that I'm not even gonna mention because

812
00:35:31,960 --> 00:35:34,279
Speaker 2: it was broken when you try to go in there.

813
00:35:34,360 --> 00:35:37,759
Speaker 2: But cannas you mentioned, fixed versus variable rates when it

814
00:35:37,760 --> 00:35:41,040
Speaker 2: comes to the price per therm, and it almost always

815
00:35:41,080 --> 00:35:44,040
Speaker 2: makes sense to lock in rates in particular in the fall,

816
00:35:44,360 --> 00:35:47,440
Speaker 2: so September and October they're often going to see the

817
00:35:47,480 --> 00:35:49,840
Speaker 2: most rate competition or November.

818
00:35:49,920 --> 00:35:51,120
Speaker 1: November is up there too.

819
00:35:51,320 --> 00:35:53,120
Speaker 2: Yeah. Yeah, but that also means that you should lock

820
00:35:53,160 --> 00:35:55,280
Speaker 2: it in for a year instead of every six months,

821
00:35:55,719 --> 00:35:58,879
Speaker 2: and prices they're often going to be double or even

822
00:35:58,920 --> 00:36:01,759
Speaker 2: worse on those very rate plans, and so lock it

823
00:36:01,800 --> 00:36:03,879
Speaker 2: in for a year and then just spend a few

824
00:36:03,880 --> 00:36:05,800
Speaker 2: minutes in the weeks leading up to the end of

825
00:36:05,840 --> 00:36:08,920
Speaker 2: your term for a deal next year that oftentimes they

826
00:36:08,960 --> 00:36:11,440
Speaker 2: just send like a little email. So all that being said,

827
00:36:11,480 --> 00:36:14,880
Speaker 2: the difference in rates between the absolute best and the

828
00:36:14,920 --> 00:36:18,000
Speaker 2: total worst, like it might typically be something like, I

829
00:36:18,000 --> 00:36:20,279
Speaker 2: guess it depends on how much energy you use. But

830
00:36:20,600 --> 00:36:22,320
Speaker 2: like we're only talking about maybe like a one hundred

831
00:36:22,320 --> 00:36:25,640
Speaker 2: bucks for the average person. It's not nothing, but it's

832
00:36:25,680 --> 00:36:28,160
Speaker 2: also you know, we're not talking about massive stakes here

833
00:36:28,280 --> 00:36:30,160
Speaker 2: like we are when it comes to something like shopping

834
00:36:30,160 --> 00:36:31,000
Speaker 2: around for car insurance.

835
00:36:31,040 --> 00:36:33,200
Speaker 1: Yeah, now you're right. And the other thing Matt you

836
00:36:33,239 --> 00:36:36,560
Speaker 1: can do is there are certain providers that have better

837
00:36:37,040 --> 00:36:41,520
Speaker 1: ratings for customer service. And if you find a provider

838
00:36:41,760 --> 00:36:43,920
Speaker 1: that has offered you great customer service in the past,

839
00:36:44,160 --> 00:36:46,520
Speaker 1: you can ask and check and see if they will

840
00:36:46,560 --> 00:36:48,480
Speaker 1: match some of the best rates out there on the market.

841
00:36:48,560 --> 00:36:50,680
Speaker 1: So if you found that they keep those fees low,

842
00:36:50,920 --> 00:36:52,960
Speaker 1: that they're really good to you. And then they're saying, hey,

843
00:36:53,000 --> 00:36:55,360
Speaker 1: the renewal rate is seventy two cents a therm, and

844
00:36:55,400 --> 00:36:57,359
Speaker 1: you're saying, wait a second, I'm seeing all these other

845
00:36:57,360 --> 00:36:59,920
Speaker 1: people offering forty five cents a therm? Can you match that?

846
00:37:00,320 --> 00:37:03,120
Speaker 1: Oftentimes that provider will say, yeah, sure, we can do

847
00:37:03,160 --> 00:37:03,840
Speaker 1: that because.

848
00:37:03,600 --> 00:37:05,359
Speaker 2: They don't want to lose a customer, right because it's

849
00:37:05,400 --> 00:37:08,000
Speaker 2: the same product. Like, that's what's so ridiculous about natural

850
00:37:08,000 --> 00:37:11,160
Speaker 2: gas in particular, is that there's no differentiation between what

851
00:37:11,200 --> 00:37:12,960
Speaker 2: it is the providing because it's all coming through the

852
00:37:13,000 --> 00:37:13,440
Speaker 2: same pipes.

853
00:37:13,480 --> 00:37:15,279
Speaker 1: It's still literally no one has to come out to

854
00:37:15,280 --> 00:37:18,480
Speaker 1: your house. It's literally the exact same product. They don't

855
00:37:18,480 --> 00:37:19,680
Speaker 1: even have to flip a switch like what.

856
00:37:19,880 --> 00:37:22,560
Speaker 2: It's just it's really fascinating because it's this entire business

857
00:37:22,600 --> 00:37:25,520
Speaker 2: model that's based on inertia bias. It makes me think

858
00:37:25,560 --> 00:37:29,279
Speaker 2: about my internet recently, Joel. It was the promotion that

859
00:37:29,280 --> 00:37:31,160
Speaker 2: we were on came to an end and I saw

860
00:37:31,320 --> 00:37:34,360
Speaker 2: our Exfinity Internet bell shoot up to seventy one bucks.

861
00:37:34,360 --> 00:37:34,759
Speaker 1: Oh man.

862
00:37:34,920 --> 00:37:37,920
Speaker 2: I did not like that. So one evening, when I

863
00:37:38,000 --> 00:37:40,799
Speaker 2: was doing some budgeting on my computer at home, like

864
00:37:40,840 --> 00:37:41,320
Speaker 2: I do.

865
00:37:41,600 --> 00:37:43,600
Speaker 1: I fired Everyone can picture that.

866
00:37:43,640 --> 00:37:43,960
Speaker 3: I think.

867
00:37:44,080 --> 00:37:46,080
Speaker 1: I fired up the did you have your snugy on?

868
00:37:46,280 --> 00:37:48,600
Speaker 2: No, okay, it's not cold yet, but I would in

869
00:37:48,680 --> 00:37:51,400
Speaker 2: order to save on natural gas prices. But I fired

870
00:37:51,480 --> 00:37:54,799
Speaker 2: up the live chat for Exfinity and I told them

871
00:37:54,800 --> 00:37:57,120
Speaker 2: my predicament. I'm like, hey, guys, I was before I

872
00:37:57,160 --> 00:38:00,680
Speaker 2: was paying forty bucks or something. And you know this

873
00:38:00,760 --> 00:38:02,600
Speaker 2: is what AT and T is offering.

874
00:38:02,800 --> 00:38:03,560
Speaker 1: All that to say.

875
00:38:03,880 --> 00:38:05,879
Speaker 2: They were like, yeah, we'll do that. She said it'll

876
00:38:05,880 --> 00:38:07,600
Speaker 2: be good for a year, blah blah blah. I was like, great,

877
00:38:07,680 --> 00:38:09,880
Speaker 2: sounds good, sound like I was good to go. I

878
00:38:10,000 --> 00:38:12,759
Speaker 2: was not good to go. And when I got my

879
00:38:12,800 --> 00:38:14,680
Speaker 2: next bill, it was still at seventy one. So I

880
00:38:14,680 --> 00:38:15,960
Speaker 2: had to actually hop on the phone.

881
00:38:16,480 --> 00:38:18,719
Speaker 1: And so that's when you went over their headquarters and

882
00:38:18,760 --> 00:38:19,720
Speaker 1: you yelled at everything.

883
00:38:20,320 --> 00:38:23,200
Speaker 2: I was so annoyed They're trying to make it hard

884
00:38:23,280 --> 00:38:25,680
Speaker 2: on you, and I had to hop on the phone.

885
00:38:25,680 --> 00:38:27,680
Speaker 2: And what they said was that you have to confirm

886
00:38:28,120 --> 00:38:31,200
Speaker 2: via text or via email. You have to confirm and

887
00:38:31,239 --> 00:38:34,000
Speaker 2: approve of the new plan. And so I'm all good

888
00:38:34,000 --> 00:38:38,360
Speaker 2: to go. But similarly, right, what a utility company like

889
00:38:38,400 --> 00:38:41,200
Speaker 2: your Internet is counting on as inertia bias. They're counting

890
00:38:41,200 --> 00:38:43,359
Speaker 2: on you not wanting to jump through the hoops. They're

891
00:38:43,400 --> 00:38:45,400
Speaker 2: counting on the hassle of having to hop on the

892
00:38:45,400 --> 00:38:47,319
Speaker 2: phone with somebody. And what's going to happen is that

893
00:38:47,400 --> 00:38:49,239
Speaker 2: if you just stick with them and you're not the

894
00:38:49,239 --> 00:38:51,360
Speaker 2: squeaky wheel, they're going to bump you up to a

895
00:38:51,360 --> 00:38:52,920
Speaker 2: more expensive plan. The same thing is true when it

896
00:38:52,920 --> 00:38:54,400
Speaker 2: comes to natural gas. They're going to bump you to

897
00:38:54,400 --> 00:38:57,359
Speaker 2: that variable rate, and most people are going to just think, oh, man,

898
00:38:57,400 --> 00:39:00,239
Speaker 2: I guess natural gas prices have gone up. Well, oh

899
00:39:00,239 --> 00:39:02,680
Speaker 2: the price that you are paying per firm that has

900
00:39:02,719 --> 00:39:05,040
Speaker 2: gone up. Chances are natural gas actually hasn't gone.

901
00:39:04,960 --> 00:39:06,799
Speaker 1: Up, right, And loyalty typically a good thing in so

902
00:39:06,800 --> 00:39:08,480
Speaker 1: many areas of our lives, but when it comes to

903
00:39:08,640 --> 00:39:12,160
Speaker 1: our relationship to different companies or brands, that loyalty often

904
00:39:12,200 --> 00:39:14,680
Speaker 1: costs you. And so you have to be careful, be

905
00:39:14,719 --> 00:39:16,960
Speaker 1: careful about just staying put because it's the easy thing

906
00:39:16,960 --> 00:39:19,080
Speaker 1: to do, because it could cost you big money. And

907
00:39:19,480 --> 00:39:22,080
Speaker 1: I think that kind of what you highlighted to variable rates.

908
00:39:22,120 --> 00:39:24,759
Speaker 1: By the way, anytime I hear somebody on a variable rate,

909
00:39:24,800 --> 00:39:26,279
Speaker 1: I want to say, get out of that as soon

910
00:39:26,280 --> 00:39:28,359
Speaker 1: as possible, because that's that's going to cost you the most.

911
00:39:29,000 --> 00:39:30,600
Speaker 2: Not good. Yeah, Well, and you said it could cost

912
00:39:30,640 --> 00:39:32,880
Speaker 2: you big. We're not talking about a large amount of

913
00:39:32,920 --> 00:39:34,800
Speaker 2: money here, right, like it truly if you look.

914
00:39:34,640 --> 00:39:36,360
Speaker 1: At it, variable to fix is more, but it just

915
00:39:36,440 --> 00:39:37,800
Speaker 1: being on the wrong fixed is less.

916
00:39:37,920 --> 00:39:39,840
Speaker 2: Yeah. But I think a lot of folks might be

917
00:39:39,840 --> 00:39:42,640
Speaker 2: thinking it's not that much money, guys. But what we're

918
00:39:42,640 --> 00:39:45,000
Speaker 2: talking about here is the compounding effect over this because

919
00:39:45,040 --> 00:39:47,879
Speaker 2: if you always take that mindset and that approach to it, well,

920
00:39:47,960 --> 00:39:49,719
Speaker 2: think about how this is going to impact you, not

921
00:39:49,880 --> 00:39:52,440
Speaker 2: just in this one utility, but across all your utilities,

922
00:39:52,480 --> 00:39:54,440
Speaker 2: across all things that you purchase over the course of

923
00:39:54,440 --> 00:39:57,680
Speaker 2: your lifetime. You're talking about literally paying more for everything

924
00:39:58,239 --> 00:40:00,160
Speaker 2: if you take that sort of approach as oppos to

925
00:40:00,239 --> 00:40:02,120
Speaker 2: like treating it like a game, right where like where

926
00:40:02,120 --> 00:40:03,680
Speaker 2: you see the new prices coming and you're like, oh no,

927
00:40:03,760 --> 00:40:06,000
Speaker 2: you don't. You jumps out of the pod at the

928
00:40:06,000 --> 00:40:07,879
Speaker 2: first sign of the game warmer, like as you see

929
00:40:07,880 --> 00:40:10,160
Speaker 2: the hand going to turn the heat up, like that's

930
00:40:10,160 --> 00:40:12,080
Speaker 2: when you're jumping out. You're like, no, no, no, that's

931
00:40:12,120 --> 00:40:14,399
Speaker 2: my money. And I don't know what, Candice. I want

932
00:40:14,440 --> 00:40:16,480
Speaker 2: to see you working to claw your money back and hey,

933
00:40:16,560 --> 00:40:20,399
Speaker 2: boiling me alive a lifetime of not getting ripped off,

934
00:40:20,440 --> 00:40:22,160
Speaker 2: that's right. But uh, all right, Joel, we've got more

935
00:40:22,239 --> 00:40:23,959
Speaker 2: to get to. We're going to hear from a listener

936
00:40:24,000 --> 00:40:26,200
Speaker 2: who's looking to sock away a ton of money for

937
00:40:26,320 --> 00:40:26,640
Speaker 2: his son.

938
00:40:26,680 --> 00:40:36,919
Speaker 1: We'll get to that right after this, all right, Matt,

939
00:40:36,920 --> 00:40:39,480
Speaker 1: we're back and we got to get to the Facebook

940
00:40:39,520 --> 00:40:40,160
Speaker 1: question of the week.

941
00:40:40,200 --> 00:40:40,799
Speaker 2: Yes, we do.

942
00:40:40,920 --> 00:40:43,200
Speaker 1: This question comes from Lucas. He's got a five twenty

943
00:40:43,280 --> 00:40:45,840
Speaker 1: nine question for us. He says, I recently had a baby,

944
00:40:46,000 --> 00:40:48,920
Speaker 1: congrats by the way, and they also recently sold a

945
00:40:49,000 --> 00:40:53,040
Speaker 1: rental property that wasn't cash flowing enough, planning to split

946
00:40:53,080 --> 00:40:55,880
Speaker 1: the proceeds to save for our eventual next house, putting

947
00:40:55,880 --> 00:40:58,080
Speaker 1: that in the total Stock Market Index fund, and to

948
00:40:58,120 --> 00:41:00,960
Speaker 1: save for our son's future. We currently fully fund our

949
00:41:01,000 --> 00:41:04,279
Speaker 1: roth IRA get the company match and the HSA. We've

950
00:41:04,280 --> 00:41:06,840
Speaker 1: got that too, so we're covered on that front. Normally

951
00:41:07,080 --> 00:41:08,719
Speaker 1: we would think to do a five to twenty nine plan,

952
00:41:09,040 --> 00:41:11,280
Speaker 1: especially since you can now transfer it into an IRA

953
00:41:11,400 --> 00:41:13,680
Speaker 1: if you don't need it for education. But my thought

954
00:41:13,719 --> 00:41:15,960
Speaker 1: is I would like to use that money to help

955
00:41:16,040 --> 00:41:17,880
Speaker 1: them in their younger years, to help my son in

956
00:41:17,920 --> 00:41:20,839
Speaker 1: his younger years, even if it doesn't they don't need

957
00:41:20,880 --> 00:41:22,680
Speaker 1: it for college, right, And in that way, a five

958
00:41:22,719 --> 00:41:25,279
Speaker 1: twenty nine plan still seems really restrictive. Is there any

959
00:41:25,280 --> 00:41:28,520
Speaker 1: better option besides starting a separate iray for them and

960
00:41:28,520 --> 00:41:31,120
Speaker 1: paying the capital gains tax whenever we sell the stocks

961
00:41:31,239 --> 00:41:32,920
Speaker 1: when we need the money all right.

962
00:41:32,800 --> 00:41:35,960
Speaker 2: Well, yeah, sounds like Lucas just he got that cash infusion,

963
00:41:36,040 --> 00:41:39,000
Speaker 2: he got some time back in his life. Well specifically

964
00:41:39,040 --> 00:41:40,799
Speaker 2: because of the sale of the house. I guess if

965
00:41:40,800 --> 00:41:43,600
Speaker 2: he counts the having the baby, he probably has less

966
00:41:43,680 --> 00:41:45,080
Speaker 2: less money and less time in his life.

967
00:41:45,120 --> 00:41:47,279
Speaker 1: That's right. Although self managing that rental property is a

968
00:41:47,320 --> 00:41:48,600
Speaker 1: big is a big uh. It's a game in the

969
00:41:48,600 --> 00:41:51,160
Speaker 1: butt sometimes, but it's an overall great trade off. I

970
00:41:51,200 --> 00:41:52,920
Speaker 1: would say you're trading a pain in the butt for

971
00:41:53,000 --> 00:41:54,399
Speaker 1: like a joyous pain.

972
00:41:54,840 --> 00:41:56,439
Speaker 2: Like I don't know if you remember the baby days,

973
00:41:56,480 --> 00:41:58,520
Speaker 2: but like we spent so much time just like watching

974
00:41:58,880 --> 00:42:01,239
Speaker 2: especially like your first year, firstborn, and so like you

975
00:42:01,239 --> 00:42:03,480
Speaker 2: can go ahead and cancel Netflix, get rid of Max.

976
00:42:03,560 --> 00:42:05,840
Speaker 2: You're just gonna be watching the baby do like baby stuff.

977
00:42:05,880 --> 00:42:08,520
Speaker 1: Just wait until those the first mile, the first rollover

978
00:42:08,640 --> 00:42:09,480
Speaker 1: all that kind of stuff.

979
00:42:09,560 --> 00:42:09,759
Speaker 3: Yeah.

980
00:42:09,800 --> 00:42:12,120
Speaker 2: I love Luca. He's kind of like doing what you

981
00:42:12,160 --> 00:42:14,680
Speaker 2: did with your retirement account. He's not selling an investment

982
00:42:14,719 --> 00:42:17,120
Speaker 2: to enjoy all that cash now, he's got it kind

983
00:42:17,120 --> 00:42:19,200
Speaker 2: of earmarked as an investment, and so he's looking to

984
00:42:19,239 --> 00:42:19,759
Speaker 2: continue that.

985
00:42:20,080 --> 00:42:21,880
Speaker 1: I appreciate that. Yeah, yeah, I think it's not like

986
00:42:22,000 --> 00:42:23,719
Speaker 1: it's not cash flowing, well, let me sell it and

987
00:42:23,760 --> 00:42:25,000
Speaker 1: bring all that money back into my life.

988
00:42:25,040 --> 00:42:27,600
Speaker 2: Right now, he's trying to do something positive with the proceeds,

989
00:42:27,960 --> 00:42:30,520
Speaker 2: keeping it invested. He's looking for the best path to take.

990
00:42:30,520 --> 00:42:33,280
Speaker 2: He's also doing the other stuff that we always recommend

991
00:42:33,320 --> 00:42:36,440
Speaker 2: as well, right maxing out the wrath, taking advantage of

992
00:42:36,480 --> 00:42:39,160
Speaker 2: the HSA. He's using it the way we like to

993
00:42:39,160 --> 00:42:41,320
Speaker 2: see folks use it, which is as a retirement account,

994
00:42:41,440 --> 00:42:45,160
Speaker 2: not as a pass through account for medical expenses. And

995
00:42:45,239 --> 00:42:48,040
Speaker 2: so Lucas is talking about doing extra here, which is

996
00:42:48,239 --> 00:42:49,360
Speaker 2: that's a great position to be in.

997
00:42:49,440 --> 00:42:51,759
Speaker 1: That's right. It's like one of the star students, like

998
00:42:51,760 --> 00:42:54,040
Speaker 1: he wants some extra goal stars on his paper. Yeah,

999
00:42:54,280 --> 00:42:56,360
Speaker 1: And I think the main thing he's wrestling with because

1000
00:42:56,360 --> 00:42:59,920
Speaker 1: you can talk about optimizing your accounts and your return

1001
00:43:00,400 --> 00:43:03,239
Speaker 1: until the dogs come home, but you might find that

1002
00:43:03,320 --> 00:43:06,239
Speaker 1: you've not optimized for the thing you actually want out

1003
00:43:06,280 --> 00:43:08,640
Speaker 1: of your life. Right, So should you say for your

1004
00:43:08,760 --> 00:43:13,160
Speaker 1: child's college future. That's something that people viscerally react to.

1005
00:43:13,200 --> 00:43:14,520
Speaker 1: It's like, of course, I don't want my kids to

1006
00:43:14,600 --> 00:43:16,600
Speaker 1: encourage college debt. So I feel like I'm compelled to

1007
00:43:16,640 --> 00:43:18,600
Speaker 1: do this, even if it means that I don't have

1008
00:43:18,719 --> 00:43:20,040
Speaker 1: enough money in the here and now for some of

1009
00:43:20,040 --> 00:43:22,000
Speaker 1: the other things we want to enjoy, or should I

1010
00:43:22,040 --> 00:43:25,080
Speaker 1: maybe be even investing those funds in a less restrictive way.

1011
00:43:25,360 --> 00:43:28,840
Speaker 1: That's kind of the heart of Lucas's question, And I

1012
00:43:28,880 --> 00:43:31,160
Speaker 1: think it's important to mention that we don't love for

1013
00:43:31,160 --> 00:43:33,399
Speaker 1: people to invest in a five twenty nine plan until

1014
00:43:33,440 --> 00:43:35,800
Speaker 1: you're in money year seven, Like we want you maxing

1015
00:43:35,800 --> 00:43:38,200
Speaker 1: out your own retirement accounts before you sock away money

1016
00:43:38,239 --> 00:43:40,200
Speaker 1: into a five twenty nine plan. We don't want you

1017
00:43:40,239 --> 00:43:42,479
Speaker 1: to get the cart before the horse. But even then,

1018
00:43:42,760 --> 00:43:45,080
Speaker 1: it's possible to stick too much in your five twenty

1019
00:43:45,120 --> 00:43:47,360
Speaker 1: nine plan, even if you're in money year seven, to

1020
00:43:47,440 --> 00:43:51,520
Speaker 1: the detriment of current spending on things that matter for

1021
00:43:51,680 --> 00:43:54,680
Speaker 1: your family and your growing child now. And I'm not

1022
00:43:54,719 --> 00:43:59,719
Speaker 1: talking about private school, I'm talking about trips, museums, extracurricular activities.

1023
00:44:00,160 --> 00:44:02,839
Speaker 1: Sometimes people are so focused on the I don't want

1024
00:44:02,880 --> 00:44:04,600
Speaker 1: my kid to take on any sort of college debt

1025
00:44:04,800 --> 00:44:08,360
Speaker 1: that maybe they're not funneling enough money towards experiences that

1026
00:44:08,400 --> 00:44:11,720
Speaker 1: are going to meaningful, opportunities that are going to broaden

1027
00:44:11,760 --> 00:44:14,719
Speaker 1: their horizons, and experiences that are going to matter to

1028
00:44:14,760 --> 00:44:16,759
Speaker 1: them that they're going to remember for years and decades

1029
00:44:16,840 --> 00:44:19,480
Speaker 1: to come, so just don't prioritize it. Five to twenty

1030
00:44:19,560 --> 00:44:21,600
Speaker 1: nine plan, I guess to the exclusion of some of

1031
00:44:21,600 --> 00:44:24,239
Speaker 1: those things, maybe that you can provide your kid in

1032
00:44:24,280 --> 00:44:26,000
Speaker 1: those early years that are going to be they're going

1033
00:44:26,080 --> 00:44:28,480
Speaker 1: to make a big difference to their for their future totally.

1034
00:44:28,560 --> 00:44:30,200
Speaker 2: And with you having a baby, you're a few years

1035
00:44:30,239 --> 00:44:33,600
Speaker 2: away from maybe him being able to actually remember some

1036
00:44:33,640 --> 00:44:35,560
Speaker 2: of that stuff. But it's something certainly something to keep

1037
00:44:35,600 --> 00:44:38,719
Speaker 2: in mind. But like five twenty nine plans, they have

1038
00:44:38,760 --> 00:44:41,280
Speaker 2: gotten a lot more flexible in recent years, which is great,

1039
00:44:41,680 --> 00:44:43,480
Speaker 2: but we still think that five twenty nine plans get

1040
00:44:43,480 --> 00:44:47,080
Speaker 2: recommended too highly without fully acknowledging the trade offs the

1041
00:44:47,280 --> 00:44:51,120
Speaker 2: restrictive nature. But one thing that Lucas is asking about

1042
00:44:51,160 --> 00:44:54,359
Speaker 2: is sticking money into an IRA for his son. Well,

1043
00:44:54,360 --> 00:44:56,160
Speaker 2: that's a tough thing to pull off because you can't

1044
00:44:56,160 --> 00:44:59,200
Speaker 2: do that unless he has actual earned income. If you're

1045
00:44:59,200 --> 00:45:01,600
Speaker 2: looking to get money into a retirement account for his future,

1046
00:45:01,680 --> 00:45:03,439
Speaker 2: well then we're kind of back to the five twenty

1047
00:45:03,520 --> 00:45:05,839
Speaker 2: nine plan because you can change those five twenty nine

1048
00:45:05,840 --> 00:45:08,799
Speaker 2: plan funds into ROTH funds for your son down the road.

1049
00:45:08,960 --> 00:45:10,759
Speaker 2: But if you feel like you need that money for

1050
00:45:10,800 --> 00:45:14,240
Speaker 2: them sooner than those college years, we're probably talking about

1051
00:45:14,239 --> 00:45:17,360
Speaker 2: a high yield savings account or a taxable brokerage account.

1052
00:45:17,360 --> 00:45:20,160
Speaker 2: I guess it kind of depends on just the time frame,

1053
00:45:20,200 --> 00:45:22,279
Speaker 2: whether or not we're talking about medium term or if

1054
00:45:22,360 --> 00:45:24,279
Speaker 2: this is something I guess, like he said, he's thinking

1055
00:45:24,280 --> 00:45:27,959
Speaker 2: about getting them set up maybe into like when they're

1056
00:45:28,040 --> 00:45:31,000
Speaker 2: launching into early adulthood where college may not be on

1057
00:45:31,040 --> 00:45:33,360
Speaker 2: the table. I think maybe he's thinking about that. And

1058
00:45:33,400 --> 00:45:36,680
Speaker 2: if that's the case, then certainly that's plenty long enough

1059
00:45:36,680 --> 00:45:38,240
Speaker 2: time frame for you to invest those dollars.

1060
00:45:38,360 --> 00:45:40,520
Speaker 1: Yeah, And if you're talking about that mat if we're

1061
00:45:40,520 --> 00:45:42,760
Speaker 1: talking about these are dollars for when they turn seventeen

1062
00:45:42,840 --> 00:45:45,160
Speaker 1: or eighteen, you can do the five twenty nine to

1063
00:45:45,280 --> 00:45:48,640
Speaker 1: Roth plan, because over time you're able to convert thirty

1064
00:45:48,640 --> 00:45:51,840
Speaker 1: five thousand dollars from five twenty nine dollars into Roth dollars.

1065
00:45:52,120 --> 00:45:54,480
Speaker 1: That is something like worth putting on your radar. And

1066
00:45:54,520 --> 00:45:56,080
Speaker 1: maybe you want to kind of do half in half.

1067
00:45:56,120 --> 00:45:57,839
Speaker 1: Maybe you do half in the five twenty nine plan

1068
00:45:57,880 --> 00:45:59,680
Speaker 1: that you plan to either use for college or convert

1069
00:45:59,680 --> 00:46:02,000
Speaker 1: into raw, and then the other half you put into

1070
00:46:02,040 --> 00:46:04,680
Speaker 1: something like a taxable brokerage account, like you mentioned, it

1071
00:46:04,719 --> 00:46:07,719
Speaker 1: would be in your name, but that could be one

1072
00:46:07,719 --> 00:46:09,959
Speaker 1: of the best options. Right you would be talking about

1073
00:46:09,960 --> 00:46:12,680
Speaker 1: paying capital gains tax, right if you held your positions

1074
00:46:12,719 --> 00:46:15,040
Speaker 1: for longer than a year when you sold those positions.

1075
00:46:15,360 --> 00:46:18,239
Speaker 1: But that's going to allow those dollars to have the

1076
00:46:18,280 --> 00:46:21,600
Speaker 1: most flexibility. So if you do, say, listen, I want

1077
00:46:21,600 --> 00:46:24,520
Speaker 1: to use these this money ten years down the road

1078
00:46:24,640 --> 00:46:26,600
Speaker 1: or twenty years down the road, well you get to

1079
00:46:26,640 --> 00:46:29,640
Speaker 1: pick and choose based on kind of the need at

1080
00:46:29,680 --> 00:46:31,879
Speaker 1: the time. And this is kind of a tough question

1081
00:46:31,920 --> 00:46:34,560
Speaker 1: because we don't really know what you know, what you're

1082
00:46:34,560 --> 00:46:36,920
Speaker 1: hoping to use those funds for or the exact timeline

1083
00:46:37,040 --> 00:46:39,520
Speaker 1: that you're planning on spending those dollars. And I'm guessing

1084
00:46:39,640 --> 00:46:42,160
Speaker 1: you probably don't know that either. You want something sort

1085
00:46:42,160 --> 00:46:44,920
Speaker 1: of flexible, So I guess our basic tips are to

1086
00:46:44,920 --> 00:46:48,360
Speaker 1: prioritize your own financial future first, do not neglect current

1087
00:46:48,600 --> 00:46:52,920
Speaker 1: education or experiential needs and desires. And if you've done

1088
00:46:52,920 --> 00:46:55,160
Speaker 1: those things and have a long enough timeline, a five

1089
00:46:55,239 --> 00:46:57,640
Speaker 1: twenty nine account, maybe combined with the tax brokes account,

1090
00:46:57,640 --> 00:46:59,040
Speaker 1: maybe taking the best of both worlds. There is the

1091
00:46:59,040 --> 00:46:59,520
Speaker 1: best choice.

1092
00:46:59,520 --> 00:47:02,200
Speaker 2: What's difficul about what you're calling kind of like the experiential,

1093
00:47:02,360 --> 00:47:05,000
Speaker 2: sort of like we're all about these sort of formational

1094
00:47:05,040 --> 00:47:07,920
Speaker 2: activities that can shape your son into who he's going

1095
00:47:07,960 --> 00:47:09,759
Speaker 2: to be. But what's tricky about that is that a

1096
00:47:09,800 --> 00:47:13,279
Speaker 2: lot of times I can look like lifestyle inflation. You're

1097
00:47:13,320 --> 00:47:15,160
Speaker 2: gonna have to make sure that you've thought long and

1098
00:47:15,200 --> 00:47:18,160
Speaker 2: hard about why it is that you're doing certain things. Yes,

1099
00:47:18,200 --> 00:47:20,320
Speaker 2: it can be an added benefit that woo, this is fun,

1100
00:47:20,680 --> 00:47:23,640
Speaker 2: and also it is developing them. But at the same time,

1101
00:47:23,719 --> 00:47:27,360
Speaker 2: not writing off certain expenses that are one percent lifestyle inflation,

1102
00:47:27,440 --> 00:47:28,840
Speaker 2: let's say, for like you and your partner or you

1103
00:47:28,880 --> 00:47:31,160
Speaker 2: and your wife, that don't benefit the kid at all,

1104
00:47:31,440 --> 00:47:34,400
Speaker 2: and there's no money set aside for you know, when

1105
00:47:34,440 --> 00:47:35,080
Speaker 2: they turn eighteen.

1106
00:47:35,160 --> 00:47:36,800
Speaker 1: I mean makes me think, just to give an example

1107
00:47:36,800 --> 00:47:38,879
Speaker 1: of that trip to DC, Matt I would much rather

1108
00:47:38,920 --> 00:47:41,560
Speaker 1: spend And honestly, it wasn't that expensive to take my

1109
00:47:41,800 --> 00:47:43,960
Speaker 1: eleven to nine year old daughters to Washington, d C.

1110
00:47:44,120 --> 00:47:46,480
Speaker 1: For fall break for a few days. The cost was minimal,

1111
00:47:46,560 --> 00:47:50,200
Speaker 1: especially considering all those Smithsonians are free, right, But that's

1112
00:47:50,239 --> 00:47:53,839
Speaker 1: the kind of stodars of going to something, we make

1113
00:47:53,920 --> 00:47:57,640
Speaker 1: use of those advantage. Well, so that was a really

1114
00:47:57,719 --> 00:48:00,600
Speaker 1: impactful trip for me and for them, and I would

1115
00:48:00,840 --> 00:48:02,680
Speaker 1: so much rather spend my money on that. They just

1116
00:48:02,719 --> 00:48:04,920
Speaker 1: sticks more into a five twenty nine plan, dude.

1117
00:48:05,000 --> 00:48:09,040
Speaker 2: Yeah, we're talking less about like creating these massive accounts

1118
00:48:09,080 --> 00:48:12,640
Speaker 2: for kids to inherit or like have automatically when they

1119
00:48:12,719 --> 00:48:15,719
Speaker 2: hit a certain age, as opposed to being able to

1120
00:48:15,719 --> 00:48:17,040
Speaker 2: spend in the here and now.

1121
00:48:17,040 --> 00:48:17,440
Speaker 1: Like I would.

1122
00:48:17,440 --> 00:48:19,320
Speaker 2: And even like we said, more like we're kind of

1123
00:48:19,360 --> 00:48:21,880
Speaker 2: promoting you taking that money into a brokerage account, even

1124
00:48:22,000 --> 00:48:24,279
Speaker 2: if it is money for them, right, so you're not

1125
00:48:24,320 --> 00:48:26,520
Speaker 2: necessarily spending it on like all of these once in

1126
00:48:26,560 --> 00:48:29,000
Speaker 2: a lifetime experiences and you know you're not going to

1127
00:48:29,080 --> 00:48:33,200
Speaker 2: go headlong in that direction, but the ability to invest

1128
00:48:33,239 --> 00:48:35,240
Speaker 2: some of those dollars so that when the time comes

1129
00:48:35,239 --> 00:48:36,960
Speaker 2: and you do want to be able to set them

1130
00:48:37,040 --> 00:48:38,840
Speaker 2: up for their future. And so I guess what I

1131
00:48:38,880 --> 00:48:40,760
Speaker 2: hear you saying is that maybe they'll go to college,

1132
00:48:41,040 --> 00:48:42,279
Speaker 2: and if so, you want to be able to have

1133
00:48:42,280 --> 00:48:44,880
Speaker 2: the funds on hand to keep them from taking on

1134
00:48:44,960 --> 00:48:47,239
Speaker 2: massive amounts of student loans. Right, I get that, but

1135
00:48:47,280 --> 00:48:48,799
Speaker 2: it sounds like you're also thinking about what if they

1136
00:48:48,800 --> 00:48:50,720
Speaker 2: want to start a business, and I think the ability

1137
00:48:50,760 --> 00:48:53,360
Speaker 2: for you to have invested dollars that you can then

1138
00:48:53,840 --> 00:48:57,719
Speaker 2: just simply gift them when they are a young adult. Right, Like,

1139
00:48:57,760 --> 00:49:00,640
Speaker 2: we're talking about eighteen thousand dollars every single year that

1140
00:49:00,680 --> 00:49:04,160
Speaker 2: you can give them that's completely excluded from the irs.

1141
00:49:04,239 --> 00:49:06,120
Speaker 2: This is not only you, but then you and your wife.

1142
00:49:06,280 --> 00:49:09,839
Speaker 2: So we're talking about thirty six thousand dollars every single year.

1143
00:49:10,080 --> 00:49:12,439
Speaker 2: That's a ton of money. And so I'm not sure

1144
00:49:12,480 --> 00:49:15,239
Speaker 2: how much money we're talking about. Maybe he's even beyond that,

1145
00:49:15,320 --> 00:49:17,960
Speaker 2: but for a lot of folks, the ability to keep

1146
00:49:17,960 --> 00:49:20,480
Speaker 2: that money in your name and just to kind of

1147
00:49:20,480 --> 00:49:22,239
Speaker 2: be able to stand in the gap. That's my goal

1148
00:49:22,280 --> 00:49:23,800
Speaker 2: as a parent for when my kids are kind of

1149
00:49:23,880 --> 00:49:26,680
Speaker 2: launching off into adulthood, to kind of be there, to

1150
00:49:26,760 --> 00:49:30,600
Speaker 2: have incentivized them to do something awesome, but not fully

1151
00:49:30,680 --> 00:49:34,920
Speaker 2: removed the like the drive or the burning that's going

1152
00:49:34,960 --> 00:49:36,440
Speaker 2: to cause them to get out there and make it.

1153
00:49:36,480 --> 00:49:37,640
Speaker 2: But then you can kind of step in at the

1154
00:49:37,680 --> 00:49:40,040
Speaker 2: right time and find ways to keep them out of

1155
00:49:40,040 --> 00:49:40,919
Speaker 2: the worst forms of debt.

1156
00:49:41,040 --> 00:49:42,279
Speaker 1: And I that makes sense, yeah, kind of like to

1157
00:49:42,320 --> 00:49:45,239
Speaker 1: supercharge what they're doing instead of like doing it for them. Yes,

1158
00:49:45,360 --> 00:49:47,040
Speaker 1: you have to supercharge the cool stuff they want to

1159
00:49:47,040 --> 00:49:50,840
Speaker 1: do because you have planned ahead instead of just from

1160
00:49:50,960 --> 00:49:53,279
Speaker 1: the get go saying, oh, I've got this path laid

1161
00:49:53,320 --> 00:49:54,719
Speaker 1: out for you, and I've got all this money they're

1162
00:49:54,719 --> 00:49:57,040
Speaker 1: waiting for you. It gives you a chance to be

1163
00:49:57,040 --> 00:49:59,760
Speaker 1: a little more thoughtful about how and when you deploy

1164
00:49:59,840 --> 00:50:02,480
Speaker 1: the dollars. And of course it's not that we're against

1165
00:50:02,680 --> 00:50:04,480
Speaker 1: five twenty nine plans. They've actually gotten much better in

1166
00:50:04,520 --> 00:50:06,200
Speaker 1: recent years. We've talked about that too, Maunt. We liked

1167
00:50:06,239 --> 00:50:08,279
Speaker 1: them more than we used to. But we also think

1168
00:50:08,320 --> 00:50:11,359
Speaker 1: people are can often be over reliant on five twenty

1169
00:50:11,440 --> 00:50:13,760
Speaker 1: nine plans that they start doing them too soon if

1170
00:50:14,040 --> 00:50:16,799
Speaker 1: resources were unlimited. Sure, we do all the above, but

1171
00:50:16,840 --> 00:50:19,200
Speaker 1: for most people, five twenty nine plans are like the

1172
00:50:19,280 --> 00:50:21,319
Speaker 1: last thing they want to partake in when it comes

1173
00:50:21,360 --> 00:50:24,040
Speaker 1: to an investment strategy and planning for their kids' future.

1174
00:50:24,120 --> 00:50:25,839
Speaker 1: But Matt, let's get back to My first priority from

1175
00:50:25,840 --> 00:50:29,080
Speaker 1: this episode is the beer we're enjoying on this one.

1176
00:50:29,200 --> 00:50:30,839
Speaker 1: So many get listener questions, So you're going to take

1177
00:50:30,840 --> 00:50:34,200
Speaker 1: it back to the pension. Oh, I am thankful for that.

1178
00:50:34,440 --> 00:50:36,960
Speaker 1: But let's talk about this beer by Monday Night Brewing.

1179
00:50:37,000 --> 00:50:39,920
Speaker 1: It's called Stranger Danger. It is a bourbon barrel aged

1180
00:50:40,120 --> 00:50:43,279
Speaker 1: peanut butter cup Imperial milk stout. It's a perfect post

1181
00:50:43,360 --> 00:50:45,040
Speaker 1: Halloween beer. I think it really is.

1182
00:50:45,200 --> 00:50:47,520
Speaker 2: What do you think were you picking up on serious

1183
00:50:47,560 --> 00:50:48,359
Speaker 2: peanut butter notes?

1184
00:50:48,400 --> 00:50:48,560
Speaker 1: Oh?

1185
00:50:48,560 --> 00:50:49,279
Speaker 2: For sure? Oh really?

1186
00:50:49,320 --> 00:50:51,239
Speaker 1: But I thought they were well, they were understated, they

1187
00:50:51,280 --> 00:50:52,839
Speaker 1: were muted, but I thought they were like.

1188
00:50:52,800 --> 00:50:53,839
Speaker 2: The opposite of what you just said.

1189
00:50:54,640 --> 00:50:56,160
Speaker 1: I was picking up on them, but not like they

1190
00:50:56,160 --> 00:50:57,160
Speaker 1: weren't overly intense.

1191
00:50:57,239 --> 00:50:59,760
Speaker 2: I feel like it was like slightly nutty. I was expecting.

1192
00:51:00,080 --> 00:51:01,799
Speaker 2: I've had some peanut butter stouts where it felt like

1193
00:51:02,320 --> 00:51:03,960
Speaker 2: do you ever do you get the what is the

1194
00:51:04,000 --> 00:51:05,360
Speaker 2: powdered peanut butter from Costco?

1195
00:51:05,680 --> 00:51:06,279
Speaker 1: The pep fit?

1196
00:51:06,560 --> 00:51:08,560
Speaker 2: Yeah, to put in, to put in smoothie or whatever.

1197
00:51:09,080 --> 00:51:11,719
Speaker 2: That's awesome. I love the flavor of that, like the

1198
00:51:11,719 --> 00:51:13,520
Speaker 2: ability to throw that in with like some bananas, I

1199
00:51:13,520 --> 00:51:15,480
Speaker 2: don't know, whatever, whatever kind of smoothie or shake you

1200
00:51:15,560 --> 00:51:17,759
Speaker 2: want to make. I think I was kind of expecting that,

1201
00:51:17,840 --> 00:51:19,719
Speaker 2: and I wasn't getting that at all. But I was

1202
00:51:19,760 --> 00:51:22,560
Speaker 2: picking up on like a nuttiness, almost like a kind

1203
00:51:22,600 --> 00:51:26,000
Speaker 2: of an earthy earthiness to it. M but let's less

1204
00:51:26,040 --> 00:51:28,120
Speaker 2: the actual sweet peebee where I felt like I was

1205
00:51:28,200 --> 00:51:29,560
Speaker 2: like challenged down on some Reese's cups.

1206
00:51:29,560 --> 00:51:31,640
Speaker 1: That's I was gonna say this this beer. To me,

1207
00:51:31,920 --> 00:51:35,839
Speaker 1: the base stout really was the heavy hitter. Yes, and

1208
00:51:35,840 --> 00:51:39,600
Speaker 1: those alternative noteories were like lightly implemented, I think to

1209
00:51:39,680 --> 00:51:42,600
Speaker 1: accentuate the bass beer that was created, which I'm all,

1210
00:51:42,640 --> 00:51:45,160
Speaker 1: I'm all in favor of, because sometimes the adjuncts can

1211
00:51:45,360 --> 00:51:47,720
Speaker 1: dominate a beer. So I like when like the beer

1212
00:51:47,800 --> 00:51:50,160
Speaker 1: itself is the highlight and the adjuncts kind of take

1213
00:51:50,200 --> 00:51:50,600
Speaker 1: a back seat.

1214
00:51:50,640 --> 00:51:53,319
Speaker 2: Totally agree. So it was Asian bourbon barrel. It makes

1215
00:51:53,320 --> 00:51:56,360
Speaker 2: me wonder if these this beer was aged in is

1216
00:51:56,400 --> 00:52:00,960
Speaker 2: it jim Bean Like whatever bourbon maker or distiller that

1217
00:52:01,120 --> 00:52:03,279
Speaker 2: makes jim Beam. All their bourbons kind of have like

1218
00:52:03,320 --> 00:52:05,680
Speaker 2: this sort of peanut like a nutty sort of taste

1219
00:52:05,800 --> 00:52:08,160
Speaker 2: you remember talking about. We literally talked about that actually

1220
00:52:08,200 --> 00:52:11,239
Speaker 2: at the gym Beam distillery when we went there, and

1221
00:52:11,280 --> 00:52:13,360
Speaker 2: so I wonder if just the ability to age a

1222
00:52:13,440 --> 00:52:16,360
Speaker 2: beer in those barrels would give it that sort of flavor.

1223
00:52:16,400 --> 00:52:17,839
Speaker 1: Probably would, I don't know, it makes sense.

1224
00:52:18,040 --> 00:52:19,440
Speaker 2: I got to enjoy though it was tasty.

1225
00:52:19,560 --> 00:52:21,399
Speaker 1: That was a cool distillery too when we went there,

1226
00:52:21,640 --> 00:52:23,759
Speaker 1: super nice. The restaurant a Jim Beam was so good.

1227
00:52:23,800 --> 00:52:25,160
Speaker 2: We had an amazing meal there.

1228
00:52:25,200 --> 00:52:26,200
Speaker 1: Did we ever talk about that?

1229
00:52:26,239 --> 00:52:27,960
Speaker 2: This is like a trip we took a couple of

1230
00:52:28,000 --> 00:52:30,319
Speaker 2: years ago, but Jim Beam, it's just kind of like

1231
00:52:30,600 --> 00:52:33,080
Speaker 2: it's a lower shelf bourbon. It's not like one of

1232
00:52:33,120 --> 00:52:35,560
Speaker 2: the big fancy ones that you expect to be amazing.

1233
00:52:35,719 --> 00:52:37,960
Speaker 2: But you go to the actual distillery and that kitchen,

1234
00:52:38,440 --> 00:52:41,239
Speaker 2: that restaurant that they had there, Dude, it was phenomenal.

1235
00:52:41,280 --> 00:52:44,160
Speaker 1: It was on fleek, as they kids say, Matt, all right,

1236
00:52:44,360 --> 00:52:46,120
Speaker 1: that's gonna do it for this one. That's right. We'll

1237
00:52:46,160 --> 00:52:49,839
Speaker 1: link to some of the resources we mentioned up in

1238
00:52:49,880 --> 00:52:52,080
Speaker 1: the show notes on our website at how to money

1239
00:52:52,080 --> 00:52:54,480
Speaker 1: dot com. We got just tons of extra resources there

1240
00:52:54,480 --> 00:52:56,919
Speaker 1: for you too, new articles being published, and don't forget

1241
00:52:56,920 --> 00:52:59,080
Speaker 1: the how to Money newsletter as well. Sign up for

1242
00:52:59,080 --> 00:53:00,759
Speaker 1: that while you're there, Matt, that's going to do it

1243
00:53:00,760 --> 00:53:03,279
Speaker 1: for this one. Until next time, Best Friends Oftfsters out

1244
00:53:18,400 --> 00:53:18,680
Speaker 5: The final