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Speaker 1: Welcome to How the Money. I'm Joel and I and Matt.

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Speaker 1: Today we are answering your listener questions. That's right, Joel,

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Speaker 1: we have a listener question Monday episode lined up for everyone.

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Speaker 1: We're gonna tackle a bunch of questions, including the effects

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Speaker 1: of the election on how we invest. We're gonna talk

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Speaker 1: about our thoughts on f h A loans as well

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Speaker 1: as paying for a master's degree. How to go about

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Speaker 1: doing that? Joel, I'm guessing you would suggest to donate

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Speaker 1: some plasma. That is one way. I did donate plasma

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Speaker 1: when I was going to school when I was in

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Speaker 1: college back in the day, for like a year um,

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Speaker 1: and it did. I didn't necessarily use it to fund

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Speaker 1: my college education. I had some scholarships, I took out

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Speaker 1: some student loans, but yeah, the plasma was kind of

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Speaker 1: nice for daily spending some pizza money is good. I

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Speaker 1: don't do it anymore, but I know we we mentioned

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Speaker 1: that we made fun of donating plasma at one point

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Speaker 1: in time, and a couple of our listeners wrote in

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Speaker 1: and they're like, hey, I still do it, and they

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Speaker 1: do it on the rag and they kind of have

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Speaker 1: a system worked out though where they kind of stop

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Speaker 1: on the way to work, and we're able to oh one, listen.

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Speaker 1: I remember. This is is how they pay for their

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Speaker 1: annual family vacation, and they they like to go to

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Speaker 1: Disney World a lot, and they completely pay for that

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Speaker 1: trip every single year with swinging by the local blood bank,

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Speaker 1: sitting there doing some reading, all donating blood and plasma.

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Speaker 1: Well I'm not sure if it's a blood bank. I

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Speaker 1: think those are separate plasma center plasma donation center. But yeah,

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Speaker 1: you can make money if that's how you want to.

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Speaker 1: But now there are other ways to pay for We're

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Speaker 1: gonna answer Hillary's question a bit later on in this episode,

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Speaker 1: but before we get to that, we have a listener

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Speaker 1: right in with an email, and she mentioned that when

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Speaker 1: we're talking about booking an Airbnb, one way to potentially

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Speaker 1: save more money on an Airbnb or vr b O

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Speaker 1: rental is to look for the company who's listing it

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Speaker 1: and then reach out directly. At times you can get

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Speaker 1: a lower price by finding the property on airbnb R

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Speaker 1: or vr b O and then booking through the company directly.

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Speaker 1: You did something like that basically with a hotel. I

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Speaker 1: remember a couple of years ago you found the hotel

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Speaker 1: online that you wanted to check out, but then you

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Speaker 1: went directly to the website and they actually had a

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Speaker 1: pretty sweet deal going on, right, Yeah, they had a

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Speaker 1: better deal than I found online. And I've totally done

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Speaker 1: this before with vacation rentals. It's such a great tip

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Speaker 1: because those companies incur costs listing on Airbnb or v

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Speaker 1: r b OH. When they get a booking there, they

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Speaker 1: have to pay a decent percentage of their profit to

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Speaker 1: those websites. And if you can reach out directly, you

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Speaker 1: might be able to get a five discount on the

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Speaker 1: property you're booking. So that is a great tip also, Matt,

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Speaker 1: when I was recently in North Myrtle Beach, had a

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Speaker 1: great time with my fam there for a few days

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Speaker 1: over the Labor Day holiday. I ended up meeting some

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Speaker 1: locals and they don't list their properties on Airbnb, r

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Speaker 1: v r b O. It's all word of mouth. There's

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Speaker 1: just a sign in the front yard with a number

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Speaker 1: with a code, right well, but it's yeah that there's that,

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Speaker 1: Like sometimes they'll have a sign in the front yard

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Speaker 1: or other times they it's really just if they meet

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Speaker 1: you and they think you're a decent human it's like, yeah,

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Speaker 1: I'd runt, I'd run it out to you. So it's like, sure,

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Speaker 1: there's enough demand. It's like, we don't need to list

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Speaker 1: on Airbnb. And so they save the fees that they

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Speaker 1: don't have to pay the listing sites, and at the

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Speaker 1: same time, they have a good idea of who's booking

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Speaker 1: their property because they know them personally. So I got

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Speaker 1: a couple of numbers from some people that that list

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Speaker 1: their properties there every year, and that might be the

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Speaker 1: way we go next time. Save some money, get a

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Speaker 1: cheaper place next time we head to North Myrtle. Yeah,

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Speaker 1: that's a nice little vacation hack. And so if you

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Speaker 1: found a place online, maybe on one platform, it's good

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Speaker 1: to even just search the name of that specific house,

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Speaker 1: because a lot of times we'll have kind of these

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Speaker 1: unique names, but it's the same name that's listed on

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Speaker 1: their actual website. And so if you can search that

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Speaker 1: name in the city that you are looking to rent

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Speaker 1: in and then go straight to the source, Yeah, it's

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Speaker 1: a way to to save a lot of money. And

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Speaker 1: real quick, let's introduce our beer for this episode. We

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Speaker 1: are drinking Deaf Tones Swerve City, and this is a

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Speaker 1: pog I p a by belching beaver. And do you

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Speaker 1: say pod or do you say like po g? You know,

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Speaker 1: when we're talking about the passion fruit orange guaba beers

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Speaker 1: usually pog. Okay, yeah, me too. I don't know if

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Speaker 1: that's what you do, though, I mean, yeah, yeah, it's

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Speaker 1: just easier, right. Plus it's a little throwback to POGs.

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Speaker 1: Do you ever play that? In school? I had like

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Speaker 1: a long plastic with your slammers at the top that

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Speaker 1: was I don't think I ever learned how to play

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Speaker 1: the game. Well, like, I think I just collected them

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Speaker 1: because they looked cool. But all the other kids are

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Speaker 1: are collecting them, so I'm going to do that as well.

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Speaker 1: You gonna like slam it down and kind of hit

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Speaker 1: it on the edge of your opponents POGs so that

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Speaker 1: it flips over. Yeah all right, and then do you

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Speaker 1: get to keep their POGs? I don't remember. Yeah, okay, yeah,

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Speaker 1: it's it's like Marbles. It's just it was basically like

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Speaker 1: an updated thing of like Marbles, which was, you know,

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Speaker 1: from like a hundred years ago. Hey, it's no wonder

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Speaker 1: kids that they don't play POGs though, let's just be honest.

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Speaker 1: I think gets to trend. This never coming back. I

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Speaker 1: don't know. Maybe I would rather see POGs happening than

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Speaker 1: like pencil fighting, which was another one of my past

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Speaker 1: times that I love doing. You know what I missed

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Speaker 1: the most though, paper football. That was the greatest. That

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Speaker 1: was another good one. Actually, we can actually probably play

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Speaker 1: here in the podcasting studio if you want. We even

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Speaker 1: used to do that in college with salt shakers, Like

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Speaker 1: if you're sitting there at waffle house and you just

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Speaker 1: kind of push the salt shaker back and forth. If

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Speaker 1: and if you get a hangar, they have to take

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Speaker 1: a shot of the salt. No, everything like that. That's

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Speaker 1: that's a good one, all right, Well we can bring

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Speaker 1: that one back. That's sure, let's do it all right.

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Speaker 1: Let's get onto the questions for today's episode, though, Matt

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Speaker 1: and and for anybody out there who wants to submit

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Speaker 1: a question for Matt and I to answer in an

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Speaker 1: upcoming episode, it's super easy. Just go to our website

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Speaker 1: how to money dot com slash ask. There are simple

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Speaker 1: instructions there for you to submit your voice question for

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Speaker 1: us to hopefully feature on an upcoming episode. We always

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Speaker 1: enjoy hearing from listeners taking these questions and at the

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Speaker 1: first one that we're gonna talk about today has to

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Speaker 1: do with borrowing from a robo investing app. Hey Matt

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Speaker 1: and Joel. I am Matt from Fablle in North Carolina.

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Speaker 1: I recently opened an m one finance account. It's all

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Speaker 1: that you can borrow thirty of your portfolios value at

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Speaker 1: a two percent interest rate after you have at least

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Speaker 1: ten thousand dollars invested into your portfolio. With interest rates

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Speaker 1: on high interest savings accounts dropping rapidly and my emergency

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Speaker 1: fund and savings being enough to cover all my expenses

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Speaker 1: for six months. Do you think it would be a

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Speaker 1: good idea to invest in index funds using m one

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Speaker 1: finance with the intent of borrowing it against my portfolio

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Speaker 1: for the purpose of purchasing and investment property within the

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Speaker 1: next two years, or should just stick to add and

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Speaker 1: cash in my savings. I really love your podcast. Thanks

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Speaker 1: for keeping finance informative and intriguing. Keep up the great work, Matt,

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Speaker 1: he said, I am mad. He said just like I did.

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Speaker 1: At least that's how we heard it. At least maybe

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Speaker 1: that's not what he intended, But I don't know. That's

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Speaker 1: that's how I heard it, man. I think you. Yeah,

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Speaker 1: all right, let's get to the question. Matt's m one.

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Speaker 1: It's one of our favorite low cost investing platforms, but

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Speaker 1: we've actually never talked about their new borrowing service, and

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Speaker 1: so let's go ahead and discuss how that works. First.

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Speaker 1: Like you said, you can borrow up to thirty of

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Speaker 1: money that is in your broke which account at a

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Speaker 1: very low rate of two percent via m One's borrow feature.

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Speaker 1: A challenge anybody else to find where you can borrow

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Speaker 1: money at two percent, right, at a very low rate,

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Speaker 1: even with low interest rates, Like, that's incredibly what it is.

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Speaker 1: But the thing is, you only get that two percent

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Speaker 1: rate if you have the premium in one account that

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Speaker 1: costs twenty five bucks a year. But you know, if

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Speaker 1: you are an investing fiend and you've got over ten

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Speaker 1: thousand dollars in there, that really can be a great

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Speaker 1: way to borrow a nice chunk of change at a

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Speaker 1: really low rate. But it also comes with risk, right,

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Speaker 1: and so we got to talk about that at the

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Speaker 1: same time. We don't recommend using the in one borrow

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Speaker 1: feature if you're directly borrowing additional funds to invest in

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Speaker 1: the stock market, and Matt, I know that's not what

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Speaker 1: you're attempting to do. But it's important for us to

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Speaker 1: mention this because a lot of people are going to

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Speaker 1: take advantage of this in one Borrow feature and then

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Speaker 1: stick that money directly in the market, hoping for great

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Speaker 1: returns in the near future. And that's really problematic because

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Speaker 1: the amount that you can borrow is directly tied to

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Speaker 1: the value of your brokerage account. So if the specific

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Speaker 1: stock you're invested in, which is something we don't advise,

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Speaker 1: but let's say you're invested in in a couple of stocks,

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Speaker 1: if those were to do poorly in a short amount

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Speaker 1: of time and your investment drops below that ten tho

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Speaker 1: dollar minimum, then you quickly have to deposit enough to

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Speaker 1: keep your balance above that threshold. But even if you

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Speaker 1: had been widely diversified in index funds right like the

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Speaker 1: SMP five or Total Stock Market Index fund like Matt

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Speaker 1: and I, that's how we like to invest. Well, if

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Speaker 1: you've done this back in February, you'd borrowed money via

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Speaker 1: the in One Borrow feature, and then just one month later,

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Speaker 1: the markets having a really tough time and and we've

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Speaker 1: seen declines, well, a lot of people borrowing money in

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Speaker 1: this way, are assuming that markets continue to go up

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Speaker 1: and that their investments will continue to increase. But if

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Speaker 1: you are going to borrow money in this way, and

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Speaker 1: then you have to at least plan for the possibility

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Speaker 1: that that's not the case and be willing to shovel

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Speaker 1: more money into the account to make up that deficit. Yeah,

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Speaker 1: and so, Matt, in your case, you know, the fact

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Speaker 1: that you have six months worth of expenses in your

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Speaker 1: savings account, like that's pretty huge. In your case, you

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Speaker 1: may have been able to weather a storm like that.

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Speaker 1: But a lot of people attempting to borrow money from

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Speaker 1: their investing app they're not necessarily in a great place financially,

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Speaker 1: and they could get caught in a situation, you know,

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Speaker 1: in which they can't pay that money, and then they

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Speaker 1: would have to sell some investments, possibly at a very

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Speaker 1: inopportune time, in order to pay back what they borrowed. Uh.

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Speaker 1: And so, since you are in a solid financial position

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Speaker 1: and you have the ability here to snaggurgate of two

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Speaker 1: pers it and that money is going towards another investment

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Speaker 1: that will generate cash flow, that does bring down the

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Speaker 1: risk level a little bit. But the thing is, if

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Speaker 1: you do decide to borrow in this way, it's crucial

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Speaker 1: to keep that savings intact just in case your investments

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Speaker 1: do see that meaningful decline and you need to pay

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Speaker 1: some or maybe even all of that money back in

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Speaker 1: a very short time frame. Yeah, and Matt, you're looking

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Speaker 1: to take that money and to invest it in cash

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Speaker 1: flowing property in real estate. It sounds like you're you're

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Speaker 1: thinking about taking that money and having it on hand

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Speaker 1: for down payment money sometime in the next two years.

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Speaker 1: But there's still a lot of volatility that could take

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Speaker 1: place within that short time frame. Right. Even though there

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Speaker 1: is a decent chance you can see the market continue

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Speaker 1: to rise in the next two years, there's also a

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Speaker 1: decent chance that could decline as well. Nobody knows what

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Speaker 1: the market is going to do today, tomorrow, or in

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Speaker 1: the next two years. It's much different when we're talking

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Speaker 1: about a fifteen to twenty year period, because any fifteen

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Speaker 1: year period, if you've got money invested in the SMP

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Speaker 1: five over the past fifty years, has always shown a game.

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Speaker 1: But when we're talking about a smaller time horizon, like

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Speaker 1: a couple of years, it's really anybody's gas and just

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Speaker 1: not to mission too. I mean by borrowing from your

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Speaker 1: investment account to then take that money and invest it

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Speaker 1: in real estate, in which case you will also be

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Speaker 1: borrowing money in addition to your down payment. It introduces

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Speaker 1: layers of risk here. And so while we are for

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Speaker 1: getting a mortgage like there, you know, we we have

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Speaker 1: nothing against that, especially when it comes to an investment property.

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Speaker 1: By introducing this additional layer, it's almost like this kind

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Speaker 1: of house of cards. You got one layer set up,

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Speaker 1: you know, set on your carpet floor. You kind of

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Speaker 1: rub it down in the carpet so it stands up

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Speaker 1: nice and straight. That's one thing, right, You can kind

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Speaker 1: of have one layer, But then by the time you

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Speaker 1: ad that second layer, things start feeling a little more precarious. Uh,

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Speaker 1: and so, Matt, it kind of depends on on how

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Speaker 1: comfortable you are with stock market volatility, you know, as

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Speaker 1: well as how badly you want to get into real

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Speaker 1: estate investing. Leverage can be powerful. It can allow you

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Speaker 1: to purchase an asset that you couldn't afford without taking

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Speaker 1: a loan, but it also increases risk. But borrowing money

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Speaker 1: and taking on debt should never be done flippantly, you know.

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Speaker 1: In this case, and one is currently offering the lowest

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Speaker 1: borrowing rates that we heard of, But you could really

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Speaker 1: get burned if you aren't careful. I know if it

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Speaker 1: was me, if I was looking to save up some

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Speaker 1: money for a down payment for an investment property, I

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Speaker 1: personally would not be investing that money. I would just

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Speaker 1: stick that in my my not so high interest rate

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Speaker 1: savings account where I would be earning him easily one

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Speaker 1: percent tops. But I would want that peace of mind

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Speaker 1: if I was looking to want to do anything with

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Speaker 1: that money. Uh sooner than you know, five or seven

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Speaker 1: years down the road. Yeah, it's a risk and reward

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Speaker 1: proposition here, and I think, Matt, you're right. I would

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Speaker 1: lean towards putting that money in savings consistently for the

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Speaker 1: next two years in order to save up and down

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Speaker 1: payment to buy a property. But I don't love the

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Speaker 1: idea of creating that house of cards. And and even

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Speaker 1: if it's a low rate, the potential for it crumbling

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Speaker 1: and reaking a lot of havoc in your life is

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Speaker 1: definitely there. Uh So, all right, Matt, let's get to

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Speaker 1: a couple more questions, including how you should think about

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Speaker 1: investing as we approach an election. We'll we'll get to

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Speaker 1: that and more right after this break. All right, we

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Speaker 1: are back from the break taking listener questions, and before

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Speaker 1: we take a question about investing money near an election,

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Speaker 1: as well as starting a podcast. We've got a little

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Speaker 1: two for going on. Let's take a quick question here

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Speaker 1: about paying for a degree. Hi, Matt and Jeel. My

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Speaker 1: name is Hillary and I'm from Victoria in British Columbia, Canada.

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Speaker 1: I'm doing my master's online and library studies and my

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Speaker 1: husband and I have been cash following it for the

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Speaker 1: past year and we are debt free other than our mortgage.

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Speaker 1: This year, I want to take two classes a semester

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Speaker 1: instead of one, which is double the price but will

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Speaker 1: allow me to graduate sooner we would be able to

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Speaker 1: cashual it. But since we also started paying for childcare

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Speaker 1: now that I'm taking two courses, things are just getting

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Speaker 1: a little tight while we try to max out our

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Speaker 1: retirement savings. Two, I'm wondering if you think it's a

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Speaker 1: good idea to take out a small student loan that

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Speaker 1: gives me a small grant as well. Since I'm a

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Speaker 1: student with a dependent and planned to save up enough

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Speaker 1: that I pay back most of the loan before it starts.

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Speaker 1: Getting interest after I graduate. Thank you so much, Matt.

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Speaker 1: We were just talking about risk, right, and I feel like,

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Speaker 1: actually Hillary's risk meter is is in a really good place.

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Speaker 1: She's really really hesitant to get risky when it comes

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Speaker 1: to student loan debt. So I appreciate where this question

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Speaker 1: is coming from. Hillary. It sounds like y'all are in

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Speaker 1: a great financial situation. And if you had like a

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Speaker 1: bunch of other types of debt hanging around in your life,

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Speaker 1: if I make us worried that you're a little too

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Speaker 1: debt dependent, but that doesn't seem to be the case, right.

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Speaker 1: It sounds like you've got a plan to pay the

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Speaker 1: money back and potentially before you even pay interest on it.

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Speaker 1: So I really appreciate where your head's at when it

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Speaker 1: comes to taking on debt. It is one of those things, Matt,

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Speaker 1: like you said, it shouldn't be done flippantly. It should

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Speaker 1: be done with a lot of care and precision, uh,

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Speaker 1: no matter what it is. And so, yeah, Hillary, I

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Speaker 1: think you're on the right track. But Matt, let's go

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Speaker 1: a little further. Yeah, let's go ahead and talk about

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Speaker 1: how to think about student loan debt in general. We

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Speaker 1: recently had Anthony O'Neil on the show, and you know,

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Speaker 1: he's dead set against taking on any debt for college.

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Speaker 1: We are not completely in the same camp on this one,

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Speaker 1: but still we do think people take on debt for

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Speaker 1: their education far too easily. Much of what Anthony said

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Speaker 1: is incredibly helpful about doing your absolute best to avoid

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Speaker 1: debt altogether. You know, at least seek to minimize the

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Speaker 1: amount of debt that you take on for college. Just

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Speaker 1: having that solid debt aversion that will ensure that you aren't,

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Speaker 1: you know, letting those higher education costs get two out

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Speaker 1: of hand right now, the average undergrad who has student

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Speaker 1: loan debt, they have a balance of about thirty thousand

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Speaker 1: dollars dollars old. That is a ton of money. You

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Speaker 1: could easily pay for a really nice car in cash,

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Speaker 1: that could be a solid chunk of a of a

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Speaker 1: down payment for a home like in Matt's case, and

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Speaker 1: in our last question, There's so much you could do

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Speaker 1: with that money, and so we want to encourage folks

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Speaker 1: to try to avoid it at all costs. Yeah, for sure.

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Speaker 1: But in Hillary's case specifically, she even mentioned that her

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Speaker 1: student loan comes with a grant since she has a dependent,

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Speaker 1: not knowing all the specifics here, it sounds like this

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Speaker 1: is probably Canada specific. It sounds like you will be

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Speaker 1: able to offset some of the cost of childcare with

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Speaker 1: that additional money, and it seems like a pretty nice

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Speaker 1: additional benefit too. Yeah, And additionally, there's value too that

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Speaker 1: you gain from childcare, right, Like, it's not necessarily just

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Speaker 1: an expense that you have to pay because you're taking

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Speaker 1: clos is. There's other things that your kids learn by

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Speaker 1: going to you know, daycare or you know, like if

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Speaker 1: there's more like a pre case set up, kids they

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Speaker 1: learn a lot of different social skills, they learn how

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Speaker 1: to listen to a teacher. Uh, they learn other lessons

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Speaker 1: as well. So there's a lot of value and a

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Speaker 1: lot of benefit in addition to making sure that your

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Speaker 1: your kids stays healthy and alive while you're taking classes online.

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Speaker 1: Alive is good. Yeah, I mean that's what we do. Like,

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Speaker 1: we don't necessarily need to send our youngest daughter to

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Speaker 1: daycare for part of the day, but we do it

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Speaker 1: because we want her to be around other kids. We

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Speaker 1: want we want her to have another outlet other than

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Speaker 1: just being cooped up at home with her you know,

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Speaker 1: while her two sisters are online learning. So yeah, yeah,

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Speaker 1: So Hillary, here's one other thing that I think makes

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Speaker 1: it just a great idea to actually take this small

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Speaker 1: loan and the grant and move forward with your education

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Speaker 1: and get it finished more quickly. Part of the benefit

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Speaker 1: is because you're just really excited to finish your degree,

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Speaker 1: and it allows you to continue kicking button, making it

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Speaker 1: happen and finishing sooner. At the same time, when you

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Speaker 1: finish sooner, it allows you to put that agree to work,

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Speaker 1: which means making an income. And so yeah, the quicker

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Speaker 1: you can finish that degree, even if it means that

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Speaker 1: small student loan that you can pay off quickly, we

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Speaker 1: say take it out, finish your schooling so you can

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Speaker 1: go out there and put that degree to use in

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Speaker 1: the career that you're really excited to pursue. Yeah, let's

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Speaker 1: keep that momentum moving forward. And so Hillary, best of

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Speaker 1: luck to you, Joel. Our next question has to do

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Speaker 1: with starting a podcast as well as investing near an election.

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Speaker 1: Let's hear it. Hello, Matt and Joe uh First and foremost,

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Speaker 1: I'd like to say thank you very much for making

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Speaker 1: this podcast. That has been a treasure trow financial information.

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Speaker 1: I've got two questions. My first question deals with what

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Speaker 1: equipment did you guys use when first start matter your podcast?

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Speaker 1: You know what what is good? Microphone, good software, things

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Speaker 1: like that. You know. I trust that y'all will lean

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Speaker 1: more on the frugal side than the chief side, you know,

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Speaker 1: especially when y'all were starting out. I've been thinking about

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Speaker 1: doing a podcast series myself, but the last thing I

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Speaker 1: want to do is put all my money into unnecessarily

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Speaker 1: expensive equipment. But my second question deals with civic duty.

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Speaker 1: I've been thinking considering how polarizing this election has been.

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Speaker 1: Should I hold off my monthly investments planned for October

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Speaker 1: and wait until the election results come out in November

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Speaker 1: and then just double down on both my November and

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Speaker 1: October investment money then to see how the market reacts

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Speaker 1: to whoever becomes president, or with waiting an extra monthly too,

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Speaker 1: you know, too much in the dollar cost averaging process,

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Speaker 1: and actually, just regardless of the election results, keep putting

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Speaker 1: my monthly investment budget to the market. Thank you very much, well,

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Speaker 1: and thanks to your question, man, and so glad that

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Speaker 1: show has been helpful. All right, let's talk about Treasure.

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Speaker 1: Trow Treasure said, I think that's the kind of thing

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Speaker 1: anyone's ever said to me about the show. I love it. Yeah,

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Speaker 1: thanks one. Uh And let's quickly get into the question

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Speaker 1: and we'll let's talk about podcasting first. And we've answered

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Speaker 1: this once or twice before. I think, but Matt, I mean,

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Speaker 1: it's so simple and easy to start podcasting, and so

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Speaker 1: many more people are are getting interested in it because

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Speaker 1: it is so universally accessible. I know a lot of

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Speaker 1: friends who have started podcast like. I love how niche

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Speaker 1: podcast get. We've talked about that before too, just that

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Speaker 1: you can create almost anything and put it out there,

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Speaker 1: so why don't we encourage you to make it happen?

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Speaker 1: And we definitely started frually not cheap. You can get

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Speaker 1: Mike's super cheap, but often the really cheap ones are

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Speaker 1: pretty terrible. This sound quality is not very good, so

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Speaker 1: we would suggest either in a t R twenty one

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Speaker 1: hundred or as sure SM fifty eight. Those are great

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Speaker 1: Mikes that costs right about hundred bucks. Matt and I

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Speaker 1: we began and still do actually record with the same

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Speaker 1: mis directly into a Zoom recorder, the same that we

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Speaker 1: started out with. Need upgrade, no, so we haven't even upgraded,

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Speaker 1: so that that's the thing like what you're hearing now

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Speaker 1: is literally those same shore SM fifty eight mics and

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Speaker 1: the Zoom recording device we did upgrade and put these

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Speaker 1: little fluffy star foam foam things on it to kind

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Speaker 1: of cut down on some of the pops with the piece, Yeah, exactly,

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Speaker 1: which which helps. And then that yeah, the the When

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Speaker 1: it comes to editing software, Garage Band or Audacity are

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Speaker 1: great free audio editing software options. Audition is I think

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Speaker 1: the best one out there, but it costs you money.

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Speaker 1: That's the one I used, but only because I've been

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Speaker 1: using it for like fifteen years because I've worked in

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Speaker 1: the radio world too. It's just something I'm used to.

430
00:19:34,280 --> 00:19:36,600
Speaker 1: And then to just of note, you don't need to

431
00:19:36,600 --> 00:19:39,399
Speaker 1: buy a new computer necessarily, I would suggest work with

432
00:19:39,400 --> 00:19:42,280
Speaker 1: what you have, so a couple of mics somewhere to record,

433
00:19:42,320 --> 00:19:44,520
Speaker 1: you can record it into a Zoom device or or

434
00:19:44,560 --> 00:19:47,280
Speaker 1: into your computer directly. It really isn't going to cost

435
00:19:47,280 --> 00:19:49,120
Speaker 1: you that much money when all of said and done.

436
00:19:49,359 --> 00:19:51,159
Speaker 1: And the biggest impact you you want to consider to

437
00:19:51,280 --> 00:19:53,440
Speaker 1: one is soundproofing, you know, like that's something we didn't

438
00:19:53,440 --> 00:19:56,239
Speaker 1: really think about, uh as much as maybe we should have,

439
00:19:56,720 --> 00:19:58,600
Speaker 1: but it doesn't have to be expensive to add some

440
00:19:58,640 --> 00:20:02,040
Speaker 1: sound proving to the room you are recording in, or

441
00:20:02,119 --> 00:20:04,120
Speaker 1: you can even move to a room that would sound

442
00:20:04,119 --> 00:20:05,760
Speaker 1: a little bit better. But you know, heavy curtains can

443
00:20:05,760 --> 00:20:07,720
Speaker 1: be really helpful. I know with a lot of folks

444
00:20:07,720 --> 00:20:10,760
Speaker 1: working from home, a lot of podcasters are actually you know,

445
00:20:10,800 --> 00:20:12,959
Speaker 1: they no longer have access to their fancy studio if

446
00:20:12,960 --> 00:20:14,960
Speaker 1: they work for say, NPR, that kind of thing, and

447
00:20:15,000 --> 00:20:16,479
Speaker 1: so a lot of folks are actually recording in their

448
00:20:16,480 --> 00:20:18,320
Speaker 1: closets and that they're always talking about how they're own

449
00:20:18,359 --> 00:20:20,840
Speaker 1: zoom calls and they can see paints hanging behind you know,

450
00:20:20,920 --> 00:20:22,960
Speaker 1: the other person. But the reason that's the case is

451
00:20:22,960 --> 00:20:24,640
Speaker 1: because a lot of times that can be the quietest

452
00:20:24,680 --> 00:20:26,639
Speaker 1: room if you have a closet that's full of clothes,

453
00:20:26,800 --> 00:20:29,280
Speaker 1: a lot of soft materials in there to absorb the sounds.

454
00:20:29,600 --> 00:20:31,399
Speaker 1: But you know, ultimately it shouldn't cost more than a

455
00:20:31,400 --> 00:20:33,840
Speaker 1: few hundred dollars to to have the equipment you need

456
00:20:34,160 --> 00:20:36,440
Speaker 1: in order to get started, uh and to create something

457
00:20:36,520 --> 00:20:39,000
Speaker 1: that sounds really good. And when it comes to hosting,

458
00:20:39,080 --> 00:20:41,040
Speaker 1: you know, to get your podcasts out there, you need

459
00:20:41,080 --> 00:20:44,040
Speaker 1: to have somebody who hosts it, who delivers it, anchor.

460
00:20:44,320 --> 00:20:46,040
Speaker 1: You can check them out for free, or you can

461
00:20:46,080 --> 00:20:49,120
Speaker 1: consider some affordable services like buzz Sprout, and we'll get

462
00:20:49,119 --> 00:20:51,520
Speaker 1: to stand outside all the different podcatchers out there. And

463
00:20:51,560 --> 00:20:53,480
Speaker 1: the biggest reason we mentioned buz Sprout is because that's

464
00:20:53,480 --> 00:20:55,879
Speaker 1: who Joel and I actually started using at the very beginning,

465
00:20:56,040 --> 00:20:58,960
Speaker 1: even though we've moved on since then. Yep, So hope

466
00:20:59,000 --> 00:21:01,800
Speaker 1: that helps want best of le getting started in that podcast.

467
00:21:01,920 --> 00:21:03,280
Speaker 1: All right, let's move on to the second part of

468
00:21:03,320 --> 00:21:07,040
Speaker 1: your question to when it comes to how elections affect

469
00:21:07,040 --> 00:21:10,600
Speaker 1: the market and affect your investing choices. Ultimately, we would

470
00:21:10,640 --> 00:21:14,800
Speaker 1: say it's more fodder for discussion the actual meaningful impact,

471
00:21:14,880 --> 00:21:17,159
Speaker 1: though you, Matt and I we would suggest that you

472
00:21:17,240 --> 00:21:20,280
Speaker 1: not change a thing about how you're investing or when

473
00:21:20,320 --> 00:21:23,359
Speaker 1: you're investing as the election approaches. If you look at

474
00:21:23,400 --> 00:21:26,160
Speaker 1: the history of how the market fares with a Democrat

475
00:21:26,240 --> 00:21:28,920
Speaker 1: or a Republican at the helm, the deviation just isn't

476
00:21:29,119 --> 00:21:32,160
Speaker 1: really very meaningful. And if you look historically, the average

477
00:21:32,280 --> 00:21:34,520
Speaker 1: return in the stock market has been nine with a

478
00:21:34,560 --> 00:21:37,880
Speaker 1: Democratic president and six percent with the Republican president. There

479
00:21:37,880 --> 00:21:41,440
Speaker 1: have been all sorts of other studies done about divided

480
00:21:41,480 --> 00:21:44,680
Speaker 1: congress or you know, or a majority Congress and how

481
00:21:44,680 --> 00:21:48,040
Speaker 1: that also impacts returns. But ultimately, history has shown us

482
00:21:48,080 --> 00:21:50,840
Speaker 1: that the impact of an election is mostly unimportant when

483
00:21:50,880 --> 00:21:53,479
Speaker 1: it comes to the market, especially if you're investing for

484
00:21:53,560 --> 00:21:56,600
Speaker 1: decades down the road. So I would say, who cares,

485
00:21:56,720 --> 00:21:59,159
Speaker 1: stick with the plan and don't let something like an

486
00:21:59,160 --> 00:22:02,960
Speaker 1: election or only anything to rail how you're investing. When

487
00:22:02,960 --> 00:22:05,440
Speaker 1: you're investing in the dollar cost averaging that you're doing

488
00:22:05,560 --> 00:22:08,920
Speaker 1: right now. Yeah, elections, uh, and pretty much everything else

489
00:22:08,960 --> 00:22:12,240
Speaker 1: doesn't really factor into how I invest at all, you know.

490
00:22:12,320 --> 00:22:14,359
Speaker 1: Interestingly enough, it's almost kind of the things that we

491
00:22:14,359 --> 00:22:17,119
Speaker 1: don't see coming which have the biggest impact on the market.

492
00:22:17,160 --> 00:22:19,359
Speaker 1: You know. It's events like nine eleven or COVID that

493
00:22:19,359 --> 00:22:22,120
Speaker 1: we've seen this year that nobody could have predicted. Those

494
00:22:22,160 --> 00:22:25,160
Speaker 1: things create the most volatility. But that being said, even

495
00:22:25,240 --> 00:22:29,040
Speaker 1: during these colossal events, we continue to invest like normal,

496
00:22:29,320 --> 00:22:31,480
Speaker 1: and so try to avoid listening to people who you know,

497
00:22:31,520 --> 00:22:35,200
Speaker 1: predict what will happen should either side when this November.

498
00:22:35,480 --> 00:22:38,840
Speaker 1: Those predictions are almost always incorrect or maybe just my opic.

499
00:22:39,160 --> 00:22:42,520
Speaker 1: Don't let any election change your investing strategy. Keep dollar

500
00:22:42,560 --> 00:22:45,480
Speaker 1: cost averaging every two weeks or every month, however it

501
00:22:45,560 --> 00:22:48,120
Speaker 1: is that you are currently investing for your retirement. Yeah,

502
00:22:48,160 --> 00:22:51,160
Speaker 1: And no matter where you line up politically, it's it's

503
00:22:51,200 --> 00:22:54,080
Speaker 1: really easy to to think that this election and actually,

504
00:22:54,119 --> 00:22:55,919
Speaker 1: I feel like every four years it said that that

505
00:22:56,040 --> 00:22:59,240
Speaker 1: this is the most important election of our lifetimes, and

506
00:22:59,760 --> 00:23:01,760
Speaker 1: it kind of feels like that every four years, right,

507
00:23:01,800 --> 00:23:03,919
Speaker 1: because there's a lot of things happening in our country

508
00:23:04,359 --> 00:23:06,959
Speaker 1: that that every election really does matter, right, and our

509
00:23:07,040 --> 00:23:10,400
Speaker 1: vote matters, And so we wouldn't dissuade you from being

510
00:23:10,400 --> 00:23:13,800
Speaker 1: politically active or using your vote, but we would dissuade

511
00:23:13,840 --> 00:23:17,080
Speaker 1: you from buying into the fact that this election is

512
00:23:17,119 --> 00:23:19,800
Speaker 1: going to change the fundamentals of the American economy or

513
00:23:19,800 --> 00:23:23,119
Speaker 1: it's going to have a massive impact on what happens

514
00:23:23,119 --> 00:23:25,320
Speaker 1: in the market in the near term. And so you

515
00:23:25,320 --> 00:23:27,840
Speaker 1: should change your strategy because of that, because that's just

516
00:23:27,880 --> 00:23:30,080
Speaker 1: not what we see historically, and that's just not what

517
00:23:30,119 --> 00:23:33,680
Speaker 1: we believe about your investing strategy. It shouldn't be based

518
00:23:33,720 --> 00:23:37,640
Speaker 1: around external factors like who's going to be the next president. Yeah, man,

519
00:23:37,680 --> 00:23:40,040
Speaker 1: that is right. Instead of speaking of investing, right after

520
00:23:40,040 --> 00:23:42,800
Speaker 1: the break, we're gonna take a question about how an

521
00:23:42,800 --> 00:23:45,600
Speaker 1: employer's form and K match how it works, and we're

522
00:23:45,600 --> 00:23:48,760
Speaker 1: gonna talk about purchasing a home with an f H loan. Look,

523
00:23:48,760 --> 00:24:00,239
Speaker 1: it's both of those right after the break. All right,

524
00:24:00,280 --> 00:24:01,560
Speaker 1: Now we're back to the break, and we've got a

525
00:24:01,640 --> 00:24:05,399
Speaker 1: question from a listener who's wondering how the profit sharing

526
00:24:05,440 --> 00:24:08,399
Speaker 1: that his employer does affects how he should view his

527
00:24:08,440 --> 00:24:11,120
Speaker 1: four oh one K. What's up, Joel Matt. My name

528
00:24:11,200 --> 00:24:13,639
Speaker 1: is Peter. I'm and I'm reaching out to you guys

529
00:24:13,680 --> 00:24:16,879
Speaker 1: from rest in Virginia in order to gain better insight

530
00:24:16,960 --> 00:24:19,480
Speaker 1: into the four one K plan I have through my employer.

531
00:24:20,040 --> 00:24:23,920
Speaker 1: They do not match up to a set percentage point. Instead,

532
00:24:24,280 --> 00:24:26,879
Speaker 1: each year they come up with a profit sharing dollar

533
00:24:26,920 --> 00:24:29,600
Speaker 1: amount based off of the goals met by the sales teams.

534
00:24:30,359 --> 00:24:34,320
Speaker 1: Then my company multiplies this amount against my percentage of

535
00:24:34,359 --> 00:24:38,399
Speaker 1: the total company's contribution. I think that's the amount they

536
00:24:38,480 --> 00:24:41,280
Speaker 1: end up contributing to my account, which I will see

537
00:24:41,320 --> 00:24:45,320
Speaker 1: as one lump sum around April or May, all said

538
00:24:45,359 --> 00:24:49,480
Speaker 1: and done. I'm told this is usually cents on the dollar.

539
00:24:50,640 --> 00:24:53,080
Speaker 1: I almost wish my company had a cap that they

540
00:24:53,119 --> 00:24:55,760
Speaker 1: match up to because it would be much easier to understand.

541
00:24:56,680 --> 00:25:00,719
Speaker 1: Right now, I'm comfortable contributing a percent to my employers

542
00:25:00,760 --> 00:25:03,520
Speaker 1: for oh one K. Why this is on my mind

543
00:25:03,600 --> 00:25:05,960
Speaker 1: is because I've been itching to open a wrath r

544
00:25:06,000 --> 00:25:09,880
Speaker 1: A with Vanguard. If my company had a cap, say

545
00:25:09,960 --> 00:25:12,000
Speaker 1: up to three, I would meet it and put the

546
00:25:12,040 --> 00:25:15,760
Speaker 1: remaining five percent towards the rath ra A. Since that's

547
00:25:15,760 --> 00:25:18,359
Speaker 1: not the case for me. What percentage my salary do

548
00:25:18,400 --> 00:25:21,879
Speaker 1: you think is what worth putting into my company's four

549
00:25:21,920 --> 00:25:25,360
Speaker 1: oh one k and what percentage is worth putting towards

550
00:25:25,720 --> 00:25:29,000
Speaker 1: a Vanguard account. I love the podcast and I'm looking

551
00:25:29,000 --> 00:25:32,320
Speaker 1: forward to your reply. Cheers, Peter. Thanks so much for

552
00:25:32,359 --> 00:25:35,120
Speaker 1: listening to the podcast, and we appreciate your question. Man,

553
00:25:35,119 --> 00:25:37,520
Speaker 1: that's an interesting way of tackling things, the way your

554
00:25:37,520 --> 00:25:40,040
Speaker 1: company is handling it. You know, I agree that for

555
00:25:40,080 --> 00:25:43,760
Speaker 1: the industrious investor, this nebulous approach can be a little

556
00:25:43,960 --> 00:25:46,320
Speaker 1: difficult to plan for. But on the other hand, you know,

557
00:25:46,359 --> 00:25:49,159
Speaker 1: there could be an unlimited upside here. You mentioned that

558
00:25:49,200 --> 00:25:53,000
Speaker 1: your employer contributes cents on the dollar and that they

559
00:25:53,000 --> 00:25:55,080
Speaker 1: don't set a cap, But does that mean that they

560
00:25:55,160 --> 00:25:58,560
Speaker 1: provide that typical match annually on every dollar you put in?

561
00:25:58,760 --> 00:26:01,320
Speaker 1: Because it's so you know, when a roth IRA like

562
00:26:01,359 --> 00:26:04,240
Speaker 1: it doesn't make nearly as much sense at all, since

563
00:26:04,280 --> 00:26:07,320
Speaker 1: every dollar above the eight percent you're currently putting in

564
00:26:07,640 --> 00:26:10,480
Speaker 1: that it would still be best invested inside your company's

565
00:26:10,520 --> 00:26:12,639
Speaker 1: plan if there's an unlimited cap, and so you can

566
00:26:12,680 --> 00:26:14,800
Speaker 1: invest up to the full amount that you can set

567
00:26:14,800 --> 00:26:18,080
Speaker 1: aside in your four oh one K. Nine. Yeah, so

568
00:26:18,520 --> 00:26:21,800
Speaker 1: I think Matt, there's not maybe quite enough information here

569
00:26:21,800 --> 00:26:23,560
Speaker 1: with Peter's question, but we'll do our best to kind

570
00:26:23,560 --> 00:26:26,120
Speaker 1: of give our thoughts on what we think is happening

571
00:26:26,359 --> 00:26:29,000
Speaker 1: um and then help Peter make a good decision inside

572
00:26:29,000 --> 00:26:31,160
Speaker 1: of that. So, Peter, one important thing to look into,

573
00:26:31,240 --> 00:26:34,720
Speaker 1: and a good question to ask is is your employer's contribution.

574
00:26:35,320 --> 00:26:37,040
Speaker 1: Is it made based on your four oh one K

575
00:26:37,200 --> 00:26:40,520
Speaker 1: contribution percentage or is it based on your income. If

576
00:26:40,560 --> 00:26:43,600
Speaker 1: it is based on your contribution, then there's zero reason

577
00:26:43,680 --> 00:26:46,600
Speaker 1: to prioritize putting it in a wrath instead. But assuming

578
00:26:46,640 --> 00:26:49,640
Speaker 1: that there is some sort of cap on your employer's contributions,

579
00:26:49,840 --> 00:26:51,720
Speaker 1: the best advice we can give you is to look

580
00:26:51,760 --> 00:26:54,720
Speaker 1: to previous years and to plan to contribute up to

581
00:26:54,800 --> 00:26:57,840
Speaker 1: what your company has historically matched, maybe even contributing a

582
00:26:57,840 --> 00:26:59,959
Speaker 1: little bit more. If your company has had a really

583
00:27:00,080 --> 00:27:02,040
Speaker 1: good year, right, and it's just in yeah, you don't

584
00:27:02,040 --> 00:27:03,560
Speaker 1: want to miss out on any of that free money.

585
00:27:03,760 --> 00:27:06,360
Speaker 1: So yeah, maybe bumping it up two percentage points over

586
00:27:06,400 --> 00:27:08,679
Speaker 1: what historically has been accurate, just to give yourself that

587
00:27:08,720 --> 00:27:12,199
Speaker 1: possible upside. So that's if the benefit is based on

588
00:27:12,400 --> 00:27:15,200
Speaker 1: your contribution. But if it's based on your salary, then

589
00:27:15,320 --> 00:27:17,959
Speaker 1: it's essentially a profit sharing plan where the money will

590
00:27:18,000 --> 00:27:20,200
Speaker 1: get thrown into your four O one K no matter

591
00:27:20,320 --> 00:27:23,840
Speaker 1: your own personal contribution. It's called the compensation or pro

592
00:27:24,119 --> 00:27:26,560
Speaker 1: rata method. And if that's the case, if that's how

593
00:27:26,640 --> 00:27:29,399
Speaker 1: your employer chooses to contribute to your retirement account, you

594
00:27:29,440 --> 00:27:31,639
Speaker 1: can essentially put in zero percent to your four O

595
00:27:31,720 --> 00:27:34,879
Speaker 1: one K and put all of your personal investments into

596
00:27:35,000 --> 00:27:37,000
Speaker 1: a rath with the Vanguard and and that would be

597
00:27:37,000 --> 00:27:39,280
Speaker 1: a great move. Yeah. So so Peter, it's important to

598
00:27:39,359 --> 00:27:42,199
Speaker 1: check with HR or whoever handles benefits to know for

599
00:27:42,320 --> 00:27:45,640
Speaker 1: sure what method it is that they go with, as

600
00:27:45,680 --> 00:27:48,200
Speaker 1: that will determine what you would do. And so you know,

601
00:27:48,320 --> 00:27:50,080
Speaker 1: if you are itching to open up a rath outside

602
00:27:50,080 --> 00:27:52,280
Speaker 1: your four O one K, maybe in order to diversify

603
00:27:52,359 --> 00:27:54,040
Speaker 1: your tax burden. You know, see if you have a

604
00:27:54,119 --> 00:27:56,520
Speaker 1: rath four one K option, as you could split your

605
00:27:56,520 --> 00:27:59,080
Speaker 1: contributions between the traditional as well as the WRATH four

606
00:27:59,080 --> 00:28:01,520
Speaker 1: oh one K. So I guess that's another reason too,

607
00:28:01,560 --> 00:28:03,360
Speaker 1: is to to ask yourself why is it that you're

608
00:28:03,400 --> 00:28:05,920
Speaker 1: itching to open up this roth. But again, double check

609
00:28:06,000 --> 00:28:08,000
Speaker 1: with your company, because if there isn't a cap to

610
00:28:08,119 --> 00:28:10,560
Speaker 1: the amount they're willing to contribute, you know, the sky

611
00:28:10,760 --> 00:28:13,680
Speaker 1: is the limit when it comes to your plan. And Peter,

612
00:28:13,800 --> 00:28:15,960
Speaker 1: either way, don't stress about this. You know, like it

613
00:28:16,000 --> 00:28:18,000
Speaker 1: sounds like you are doing a fantastic job. You're sitting

614
00:28:18,000 --> 00:28:21,960
Speaker 1: aside a large portion of your income. Uh, you've got

615
00:28:22,000 --> 00:28:25,720
Speaker 1: a type of match somehow, uh, And so it's okay

616
00:28:25,760 --> 00:28:28,520
Speaker 1: if you are not optimized perfectly. It sounds like you

617
00:28:28,600 --> 00:28:30,760
Speaker 1: are still in a really great position. Yeah, and you're

618
00:28:30,760 --> 00:28:33,040
Speaker 1: putting in enough to at least get a meaningful match

619
00:28:33,040 --> 00:28:34,760
Speaker 1: from your employer, which which is huge. That's what you

620
00:28:34,800 --> 00:28:36,840
Speaker 1: don't want to miss out on, is that match from

621
00:28:36,840 --> 00:28:39,080
Speaker 1: your employer. So Peter, keep up the great work man,

622
00:28:39,160 --> 00:28:41,680
Speaker 1: keep on investing. You got this and hopefully even just

623
00:28:41,720 --> 00:28:43,560
Speaker 1: a little bit of due diligence can help you make

624
00:28:43,600 --> 00:28:46,520
Speaker 1: the best possible decision for you. So so keep it up. Man,

625
00:28:46,640 --> 00:28:48,600
Speaker 1: All Matt, Let's get to our next question, and this

626
00:28:48,640 --> 00:28:51,880
Speaker 1: one is about buying a house and taking out an

627
00:28:51,920 --> 00:28:55,240
Speaker 1: f h A mortgage. Hey guys, my name is Brittany.

628
00:28:55,240 --> 00:28:58,680
Speaker 1: I'm twenty seven years old living in Philadelphia, Pennsylvania. Love

629
00:28:58,800 --> 00:29:01,520
Speaker 1: the show and thanks in advance for your advice. My

630
00:29:01,600 --> 00:29:03,640
Speaker 1: question is about buying a home with an f h

631
00:29:03,720 --> 00:29:06,400
Speaker 1: A loan. I know that you typically don't recommend buying

632
00:29:06,440 --> 00:29:10,200
Speaker 1: a home with it or with less than down, but

633
00:29:10,240 --> 00:29:12,320
Speaker 1: I wanted to explain my situation and see if you

634
00:29:12,360 --> 00:29:14,920
Speaker 1: think it could be an exception. Right now, I'm gonna

635
00:29:14,920 --> 00:29:16,520
Speaker 1: place in my life where I definitely plan to stay

636
00:29:16,520 --> 00:29:18,239
Speaker 1: in the area for about ten years, as I want

637
00:29:18,280 --> 00:29:20,320
Speaker 1: to live near my nine year old little sister as

638
00:29:20,360 --> 00:29:23,840
Speaker 1: she grows up. Big age difference. I know where I

639
00:29:23,840 --> 00:29:26,040
Speaker 1: would buy would be a county next to Philadelphia. That's

640
00:29:26,040 --> 00:29:29,720
Speaker 1: an amazing school district, pretty much guaranteed to appreciate properties

641
00:29:29,840 --> 00:29:33,000
Speaker 1: very well. It's also near two of my closest friends.

642
00:29:33,400 --> 00:29:35,680
Speaker 1: In terms of my financials, I've paid off all credit

643
00:29:35,680 --> 00:29:37,800
Speaker 1: card debt as well as my car with just federal

644
00:29:37,840 --> 00:29:40,600
Speaker 1: student loans left. At twenty three thousand, I have a

645
00:29:40,600 --> 00:29:43,840
Speaker 1: six month emergency fund decently high salary working in tech

646
00:29:44,280 --> 00:29:46,720
Speaker 1: retirement and good shape and can save up enough for

647
00:29:46,840 --> 00:29:49,480
Speaker 1: five percent down my next summer. I'm excited to hear thoughts,

648
00:29:49,600 --> 00:29:51,160
Speaker 1: even if it's not the answer. I want to hear

649
00:29:51,280 --> 00:29:53,440
Speaker 1: thanks again, bring you, thanks so much for that question.

650
00:29:53,480 --> 00:29:55,720
Speaker 1: And hopefully we can be the dispensers of advice that

651
00:29:55,880 --> 00:29:57,640
Speaker 1: is maybe the best advice, and in the end to

652
00:29:57,760 --> 00:30:00,680
Speaker 1: hopefully it'll be advice that you want to hear as well.

653
00:30:00,720 --> 00:30:02,680
Speaker 1: But we always go for unbiased advice, even if it

654
00:30:02,760 --> 00:30:04,920
Speaker 1: is bad news, right, like, we want Brittany to make

655
00:30:04,920 --> 00:30:07,640
Speaker 1: the right decision absolutely and awesome. Man, I love the

656
00:30:07,840 --> 00:30:10,000
Speaker 1: desire for her to live next to her or nearby

657
00:30:10,080 --> 00:30:12,760
Speaker 1: her sister. That's pretty cool. I've never had a sibling

658
00:30:12,800 --> 00:30:14,480
Speaker 1: that was that much younger, but you're almost like an

659
00:30:14,480 --> 00:30:17,200
Speaker 1: additional parent, which is pretty cool. But Brittany, the reason

660
00:30:17,240 --> 00:30:19,400
Speaker 1: that we prefer to save up down in order to

661
00:30:19,440 --> 00:30:22,320
Speaker 1: purchase a home and so avoid f h A loans

662
00:30:22,480 --> 00:30:24,920
Speaker 1: is for a couple of reasons. First, um is that

663
00:30:25,000 --> 00:30:29,040
Speaker 1: you avoid paying monthly mortgage insurance costs that could cost

664
00:30:29,080 --> 00:30:31,760
Speaker 1: you thousands of dollars annually depending on the price of

665
00:30:31,800 --> 00:30:33,960
Speaker 1: your home. And then the second reason is because in

666
00:30:34,000 --> 00:30:37,520
Speaker 1: addition to paying these mortgage insurance payments every month, you

667
00:30:37,600 --> 00:30:40,160
Speaker 1: also have to pay an upfront premium of one point

668
00:30:40,160 --> 00:30:43,240
Speaker 1: seven five of a loan. That's a really high fee.

669
00:30:43,600 --> 00:30:45,520
Speaker 1: And so if you could save up more on the

670
00:30:45,520 --> 00:30:48,320
Speaker 1: frint end you could avoid that altogether. Not at the

671
00:30:48,360 --> 00:30:50,880
Speaker 1: same time, when you put more down, you are seen

672
00:30:50,960 --> 00:30:54,160
Speaker 1: as the less risky borrower, which gives you access to

673
00:30:54,440 --> 00:30:57,200
Speaker 1: the best race and the best terms, and of course

674
00:30:57,200 --> 00:30:59,680
Speaker 1: you'll have a smaller monthly mortgage payment, which is clutch

675
00:30:59,720 --> 00:31:01,840
Speaker 1: as well. Yeah, so that's all the reasons that we

676
00:31:01,920 --> 00:31:05,000
Speaker 1: think down is the best thing to shoot for you.

677
00:31:05,240 --> 00:31:07,840
Speaker 1: But we also realize that there are a lot of

678
00:31:07,840 --> 00:31:10,560
Speaker 1: people out there who are in the position to buy

679
00:31:10,560 --> 00:31:14,640
Speaker 1: a home but don't have to put down uh and

680
00:31:14,640 --> 00:31:16,480
Speaker 1: and it would take a long long time in order

681
00:31:16,480 --> 00:31:19,800
Speaker 1: to get to that point. But Brittany, you specifically mentioned

682
00:31:19,880 --> 00:31:22,600
Speaker 1: taking out an f h A loan, But it's worth

683
00:31:22,640 --> 00:31:25,280
Speaker 1: mentioning that you can get a conventional loan at three

684
00:31:25,320 --> 00:31:27,360
Speaker 1: percent down or or five percent down, which is what

685
00:31:27,400 --> 00:31:29,680
Speaker 1: you plan on having next summer, and you can avoid

686
00:31:29,760 --> 00:31:33,200
Speaker 1: that upfront f h A cost. But your credit score

687
00:31:33,200 --> 00:31:35,280
Speaker 1: needs to be at six twenty or higher. So the

688
00:31:35,320 --> 00:31:37,520
Speaker 1: great thing is you have time, first off, to save

689
00:31:37,640 --> 00:31:39,880
Speaker 1: to get the to that five percent down payment level,

690
00:31:40,200 --> 00:31:42,360
Speaker 1: and second to build your credit score to make sure

691
00:31:42,440 --> 00:31:45,120
Speaker 1: it's in a great place. Ultimately, you want it to

692
00:31:45,160 --> 00:31:47,800
Speaker 1: be seven forty or higher to qualify for the best

693
00:31:47,920 --> 00:31:51,280
Speaker 1: rates and best terms while getting a conventional loan. So

694
00:31:51,560 --> 00:31:53,680
Speaker 1: you might be considering an f h A if you

695
00:31:53,720 --> 00:31:56,840
Speaker 1: have a rougher credit score, but working to improve that

696
00:31:56,880 --> 00:31:59,880
Speaker 1: credit score has just so many benefits across your entire

697
00:32:00,000 --> 00:32:03,800
Speaker 1: financial life, so saving up and cleaning up your credit

698
00:32:03,800 --> 00:32:05,760
Speaker 1: score can take a while. So we would say buying

699
00:32:05,760 --> 00:32:07,640
Speaker 1: a home with a smaller down payment is it the

700
00:32:07,640 --> 00:32:10,200
Speaker 1: worst thing you can do? Specifically given what you've got

701
00:32:10,240 --> 00:32:12,640
Speaker 1: going on, a great job in tech, six months of

702
00:32:12,680 --> 00:32:15,360
Speaker 1: emergency fund, you're maxing out your retirement and at the

703
00:32:15,400 --> 00:32:17,160
Speaker 1: same time, it sounds like you're planning on being in

704
00:32:17,200 --> 00:32:19,200
Speaker 1: that home for quite a while, and that is one

705
00:32:19,200 --> 00:32:21,240
Speaker 1: of the most important things when buying a home. I

706
00:32:21,280 --> 00:32:24,240
Speaker 1: think you can afford to put down less if your

707
00:32:24,240 --> 00:32:28,160
Speaker 1: time horizon is even longer. It drastically reduces the risk

708
00:32:28,600 --> 00:32:30,880
Speaker 1: of buying a home when you know you're going to

709
00:32:30,920 --> 00:32:33,080
Speaker 1: be in that home for at least a decade and

710
00:32:33,080 --> 00:32:35,080
Speaker 1: then finally Brittany's good to thing through lifestyle. You know,

711
00:32:35,080 --> 00:32:36,800
Speaker 1: it's good to think through what else you want to

712
00:32:36,840 --> 00:32:39,080
Speaker 1: be doing with your money. You don't necessarily want to

713
00:32:39,080 --> 00:32:41,600
Speaker 1: put yourself in a position where you are house poor,

714
00:32:41,600 --> 00:32:43,480
Speaker 1: where all you can afford is your house and you're

715
00:32:43,480 --> 00:32:46,800
Speaker 1: gonna have to forego uh, some vacations, you know, maybe

716
00:32:46,800 --> 00:32:48,160
Speaker 1: some trips with some of those friends that you're going

717
00:32:48,200 --> 00:32:49,920
Speaker 1: to be able to move closer to in the future.

718
00:32:50,200 --> 00:32:51,680
Speaker 1: It sounds like you've done a great job up until

719
00:32:51,720 --> 00:32:53,640
Speaker 1: this point. You know, you're you're maxing out your retirement

720
00:32:53,680 --> 00:32:55,920
Speaker 1: and you obviously want to make sure that you maintain that.

721
00:32:56,320 --> 00:32:58,680
Speaker 1: But just take into account some of the other expenses

722
00:32:58,720 --> 00:33:01,120
Speaker 1: that you might have in your life down the road,

723
00:33:01,160 --> 00:33:03,480
Speaker 1: as maybe your interest change, And it's good to to

724
00:33:03,520 --> 00:33:06,280
Speaker 1: consider some of the additional costs that come with maintaining

725
00:33:06,320 --> 00:33:08,920
Speaker 1: a house. A good starting place is one percent of

726
00:33:08,960 --> 00:33:11,640
Speaker 1: the purchase price of the home just for maintenance and repairs,

727
00:33:11,880 --> 00:33:14,240
Speaker 1: and that's not even including furnishings. You know, like once

728
00:33:14,280 --> 00:33:16,760
Speaker 1: you buy a house, most people don't just want to

729
00:33:16,760 --> 00:33:19,120
Speaker 1: move their old apartment furniture into the house. You know,

730
00:33:19,160 --> 00:33:21,360
Speaker 1: you want to pick out a couch that's specific to

731
00:33:21,520 --> 00:33:23,360
Speaker 1: that living room. You want to pick out some some

732
00:33:23,440 --> 00:33:26,280
Speaker 1: furniture that fits that house, and all that cost money

733
00:33:26,280 --> 00:33:28,320
Speaker 1: as well. You know, we have we have a mutual friend, Matt,

734
00:33:28,360 --> 00:33:31,480
Speaker 1: who just had a house that they finished building, and

735
00:33:31,600 --> 00:33:33,360
Speaker 1: he was telling me and I got to buy all

736
00:33:33,400 --> 00:33:35,720
Speaker 1: new furniture for this house. I was like, you don't

737
00:33:35,760 --> 00:33:38,600
Speaker 1: have to, but you know, he was basically insinuating that

738
00:33:38,600 --> 00:33:40,600
Speaker 1: that was what his wife wanted. And those are the

739
00:33:40,640 --> 00:33:43,000
Speaker 1: kind of things that sometimes you buy a house and

740
00:33:43,000 --> 00:33:45,080
Speaker 1: everything else feels a little dingy, and you start upgrading

741
00:33:45,080 --> 00:33:46,720
Speaker 1: the furniture. You don't have to do it, but a

742
00:33:46,800 --> 00:33:48,960
Speaker 1: lot of times it's kind of assumed. Yeah, And so

743
00:33:49,040 --> 00:33:51,480
Speaker 1: I think one last thing I would say to Brittany is, yeah,

744
00:33:51,480 --> 00:33:53,880
Speaker 1: five percent getting a conventional loan with a great credit

745
00:33:53,920 --> 00:33:56,720
Speaker 1: score is not a terrible move for her because she

746
00:33:57,000 --> 00:33:59,640
Speaker 1: is so solid in so many other facets of our finances.

747
00:34:00,040 --> 00:34:02,320
Speaker 1: But one other thing Brittany I would I would ask

748
00:34:02,320 --> 00:34:04,960
Speaker 1: you to really really consider is to think about your

749
00:34:05,000 --> 00:34:07,880
Speaker 1: max price point of the home you're buying, because you

750
00:34:07,880 --> 00:34:10,279
Speaker 1: want to make sure that it's easily affordable. And and

751
00:34:10,280 --> 00:34:12,920
Speaker 1: like Matt said, that you're not going to be house poor,

752
00:34:13,000 --> 00:34:15,720
Speaker 1: unable to afford to continue to max out your retirement,

753
00:34:15,760 --> 00:34:17,520
Speaker 1: unable to afford some of those fun things that you

754
00:34:17,520 --> 00:34:19,920
Speaker 1: want to do in your life. And so I think, Brittany,

755
00:34:19,960 --> 00:34:22,279
Speaker 1: it sounds like you're making this decision with a good

756
00:34:22,360 --> 00:34:24,680
Speaker 1: head on your shoulders. So go for it. It sounds

757
00:34:24,719 --> 00:34:26,279
Speaker 1: like this home is going to be a good place

758
00:34:26,360 --> 00:34:28,800
Speaker 1: for you to land for quite a long time. Plus

759
00:34:28,800 --> 00:34:30,160
Speaker 1: it sounds like she's thinking about it in a in

760
00:34:30,160 --> 00:34:32,760
Speaker 1: a great way, you know, she's talking about the school system,

761
00:34:33,040 --> 00:34:35,200
Speaker 1: all those sorts of things. Unfortunately, when Kate and I

762
00:34:35,239 --> 00:34:37,160
Speaker 1: bought our first house, man, that's not something we considered

763
00:34:37,200 --> 00:34:39,520
Speaker 1: at all. That wasn't on your radar. No. Well, I

764
00:34:39,520 --> 00:34:41,520
Speaker 1: mean we got lucky, but it's something that we were

765
00:34:41,560 --> 00:34:42,879
Speaker 1: just like, oh, that's so far down the road. We're

766
00:34:42,880 --> 00:34:44,840
Speaker 1: not worried about that. We're not really worried about resale,

767
00:34:45,160 --> 00:34:46,680
Speaker 1: you know, if we like the house and somebody else

768
00:34:46,719 --> 00:34:49,200
Speaker 1: will like it after us. We were kind of basing everything,

769
00:34:49,280 --> 00:34:51,239
Speaker 1: I guess on our own tastes, but we didn't really

770
00:34:51,280 --> 00:34:53,719
Speaker 1: consider schools. And so it's important to consider, you know,

771
00:34:53,760 --> 00:34:56,520
Speaker 1: all these different aspects of home ownership that you are

772
00:34:56,560 --> 00:34:58,359
Speaker 1: doing Brittany. So yeah, best of luck to you, and

773
00:34:58,360 --> 00:35:00,399
Speaker 1: thanks for listening to the podcast. All right, leus ahead

774
00:35:00,400 --> 00:35:03,120
Speaker 1: and shift gears, and let's get to our beer this episode.

775
00:35:03,560 --> 00:35:05,600
Speaker 1: You know, I we shared the Deaf Tones Swerve City

776
00:35:05,680 --> 00:35:08,359
Speaker 1: Pog I p A and this is by Belching Beaver.

777
00:35:08,800 --> 00:35:11,040
Speaker 1: And this one was donated to the show by Brent's

778
00:35:11,080 --> 00:35:13,240
Speaker 1: out in California. I think this is a local brewery

779
00:35:13,320 --> 00:35:16,120
Speaker 1: out there for him. What were your thoughts on this one, buddy?

780
00:35:16,120 --> 00:35:19,520
Speaker 1: All right, so summer's over right, fall air. It's nice

781
00:35:19,560 --> 00:35:21,919
Speaker 1: and crisp, it's kind of cool outside, but this beer

782
00:35:22,200 --> 00:35:25,000
Speaker 1: brings you back to summer. I feel like I'm lathering

783
00:35:25,040 --> 00:35:27,320
Speaker 1: some swine on my arms and on my face. Actually

784
00:35:27,320 --> 00:35:29,480
Speaker 1: I usually miss my face and get burned, um, but

785
00:35:29,640 --> 00:35:31,600
Speaker 1: this will lather you just like pretend to spray some

786
00:35:31,760 --> 00:35:33,320
Speaker 1: on your face and you're like, oh, the spray stuff

787
00:35:33,360 --> 00:35:35,120
Speaker 1: never works good? And why do I look like a lobster?

788
00:35:35,160 --> 00:35:38,359
Speaker 1: I don't get it. Yeah, but I thought this beer, man,

789
00:35:38,400 --> 00:35:40,200
Speaker 1: it was like it was kind of like kind of

790
00:35:40,200 --> 00:35:43,680
Speaker 1: fruit punch I p A kind of going on super fruity.

791
00:35:43,760 --> 00:35:46,160
Speaker 1: And I don't think I'm missing summer quite yet, but

792
00:35:46,200 --> 00:35:47,719
Speaker 1: this beer kind of makes me miss it just a

793
00:35:47,719 --> 00:35:49,960
Speaker 1: little bit at least totally, man, I am with you.

794
00:35:50,040 --> 00:35:52,840
Speaker 1: It's certainly had a tropical tart action going on with

795
00:35:52,880 --> 00:35:55,720
Speaker 1: this I p ah. It almost tastes like a fruit candy,

796
00:35:55,800 --> 00:35:57,880
Speaker 1: you know, like mixed with an I p A with

797
00:35:57,920 --> 00:35:59,480
Speaker 1: like a little bit of bitterness because it's an I

798
00:35:59,520 --> 00:36:00,960
Speaker 1: p A. Like. Honestly, it kind of reminds me of

799
00:36:00,960 --> 00:36:02,840
Speaker 1: like Flint Stone's vitamins a little bit, you know, like

800
00:36:02,840 --> 00:36:05,000
Speaker 1: they were always kind of sweet and kind of tropical flavored,

801
00:36:05,200 --> 00:36:06,719
Speaker 1: but you can always tell that they were vitamins. It

802
00:36:06,760 --> 00:36:08,360
Speaker 1: wasn't just straight candy because it always had like this

803
00:36:08,360 --> 00:36:10,000
Speaker 1: little bitter edge to it. That fruit was just trying

804
00:36:10,040 --> 00:36:11,920
Speaker 1: to cover up the vitamin bitterness. Eactly. That's kind of

805
00:36:11,920 --> 00:36:13,480
Speaker 1: what this reminds me, like in the best, in the

806
00:36:13,520 --> 00:36:15,120
Speaker 1: best way, you know. I'm not saying this says like

807
00:36:16,920 --> 00:36:19,040
Speaker 1: vitamins were good, dude, that's a compliment. I mean, there's

808
00:36:19,080 --> 00:36:21,239
Speaker 1: never any argument in my house about me wanting to

809
00:36:21,280 --> 00:36:23,959
Speaker 1: take flint vitamin right. I was always going after Dino.

810
00:36:24,080 --> 00:36:26,160
Speaker 1: My kid was the little purple one. Of course, we

811
00:36:26,239 --> 00:36:29,080
Speaker 1: do the Costco kids vitamins at our house, but my

812
00:36:29,160 --> 00:36:31,879
Speaker 1: kids clamor for them every night. They're They're like, please,

813
00:36:31,880 --> 00:36:33,799
Speaker 1: can we have our vitamin gummies? So, but you give

814
00:36:33,800 --> 00:36:35,320
Speaker 1: them to them at night? Yeah, Do you feel like

815
00:36:35,360 --> 00:36:36,719
Speaker 1: that kind of gets them all hopped up before they

816
00:36:36,719 --> 00:36:38,880
Speaker 1: go to bed, get gets their minds activated with all

817
00:36:38,880 --> 00:36:41,520
Speaker 1: the vitamins. I don't think so. Maybe I feel like

818
00:36:41,560 --> 00:36:43,000
Speaker 1: I've thought that before. So we always do them in

819
00:36:43,000 --> 00:36:44,879
Speaker 1: the morning. All right, I'll switch it up and try

820
00:36:44,880 --> 00:36:48,200
Speaker 1: it and overall tea. You know, these flavors, the passion fruit,

821
00:36:48,200 --> 00:36:50,400
Speaker 1: the orange, the guava. I feel like all these flavors

822
00:36:50,480 --> 00:36:53,359
Speaker 1: combined together, it honestly reminds me a little bit of

823
00:36:53,400 --> 00:36:56,359
Speaker 1: strawberry as well, which this isn't a specific fruit that's

824
00:36:56,400 --> 00:36:58,320
Speaker 1: in the beer, but it kind of evokes that fruitiness

825
00:36:58,320 --> 00:37:00,160
Speaker 1: to me. I enjoyed it, man, and I'm with you. It

826
00:37:00,120 --> 00:37:01,720
Speaker 1: It kind of takes me back a little bit to summer,

827
00:37:01,719 --> 00:37:04,960
Speaker 1: even though I am looking forward to these these crisp,

828
00:37:05,000 --> 00:37:07,520
Speaker 1: cooler nights for sure, no doubt. Thanks again Brent for

829
00:37:07,520 --> 00:37:10,480
Speaker 1: sending these beers are away. Always enjoy tasting beers that

830
00:37:10,920 --> 00:37:13,319
Speaker 1: we can't taste here in Georgia typically, So all right,

831
00:37:13,520 --> 00:37:16,000
Speaker 1: that's gonna be it for this episode for anybody who wants.

832
00:37:16,239 --> 00:37:18,440
Speaker 1: Show notes for this episode will have those up on

833
00:37:18,440 --> 00:37:21,040
Speaker 1: our website at how to Money dot com. And if

834
00:37:21,080 --> 00:37:23,600
Speaker 1: you haven't yet left us a review, we always appreciate

835
00:37:23,640 --> 00:37:27,439
Speaker 1: solid reviews over at Apple Podcasts. That helps others who

836
00:37:27,480 --> 00:37:29,640
Speaker 1: have not yet found How Some Money. It helps them

837
00:37:29,640 --> 00:37:32,080
Speaker 1: to find this podcast and allows them to do better

838
00:37:32,120 --> 00:37:34,080
Speaker 1: things with their money as well. And so Joel, well,

839
00:37:34,120 --> 00:37:36,080
Speaker 1: that's gonna be a budd until the next time. Best

840
00:37:36,080 --> 00:37:37,640
Speaker 1: Friends Out, Best Friends Out,