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Speaker 1: Welcome to How to Money.

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Speaker 2: I'm Joel and I am Matt.

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Speaker 1: Today we're answering your listener questions.

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Speaker 2: You know, a buddy, this isn't ask How to Money

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Speaker 2: Monday episode, and we've got five excellent listener questions to

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Speaker 2: get to. One listener. She's got a job that she

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Speaker 2: has that's great, but she's trying to decide whether she

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Speaker 2: should go for the passion or if she should be

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Speaker 2: going for the pay. She yeah, she's in a difficult spot.

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Speaker 1: Not the only one who's ever asked that question, right.

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Speaker 2: She's not. Yeah. Another listener is asking about this TikTok

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Speaker 2: mortgage hack. We're gonna get to that one. Plus a

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Speaker 2: complicated life insurance product that a listener is asking about

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Speaker 2: and she's wondering if it's worth the additional hassle that

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Speaker 2: a companies that thing. We got those questions on doc

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Speaker 2: plus a couple others, but Joey real quick, I wanted

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Speaker 2: to mention. So I was talking with our buddy Tim.

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Speaker 2: He was bummed that we didn't talk about my Marino

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Speaker 2: wool shirt because we had talked about that prior to

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Speaker 2: going to Scotland.

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Speaker 1: I feel like we've talked about your Marina wool shirt

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Speaker 1: quite a bit, and he was just like, you never

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Speaker 1: followed up on it, like did it actually hold up?

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Speaker 2: And he was hoping we would let the listeners know

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Speaker 2: whether or not in fact, I was able to remain

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Speaker 2: stink free or not.

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Speaker 1: So yeah, this was the whole goal behind your Marino

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Speaker 1: wool purchase. It's a more expensive shirt, but you're in

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Speaker 1: about a couple because you were hoping that you could

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Speaker 1: pack lighter and you could wear the same shirt three, four,

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Speaker 1: maybe six days in a row and still not stick

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Speaker 1: it up.

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Speaker 2: Well, I had two different shirts, and so I think

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Speaker 2: I wore each shirt about four times. Okay, but well

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Speaker 2: it's why I purchased the shirt so early, because I

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Speaker 2: tested it. You know, we talked about it here on

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Speaker 2: the show. I wore for like seven days in a

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Speaker 2: row here at home. I know you made me sniff

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Speaker 2: it on occasion, including going for a run within that

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Speaker 2: shirt or while wearing that shit. And I'm proud to

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Speaker 2: say that. I mean, according to you, did I ever

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Speaker 2: get funky during our Scotland trip? Not that I noticed,

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Speaker 2: But I also tried to keep my distance. Please see,

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Speaker 2: we were hack so tightly on many occasions. I feel

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Speaker 2: like you would have noticed pus those airplanes, man, But

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Speaker 2: indeed it worked incredibly well. So Tim and others out

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Speaker 2: there who might be interested in Marinal wool, I totally

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Speaker 2: think they're worth it. Many, like you said, you are

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Speaker 2: paying a premium for that additional shirt, or for that

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Speaker 2: extra faincy shirt, I should say, but it comes with

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Speaker 2: some of these additional benefits. But actually, shortly after we

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Speaker 2: had initially talked about that listener amy, she emailed us

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Speaker 2: and was just like, guys, it seemed like she was

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Speaker 2: just waiting for us to actually say the thing, and

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Speaker 2: we never said it. So she wrote to us, She's like,

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Speaker 2: how do you not know about this? You should be

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Speaker 2: sharing this with your listeners. Specifically, geartrade dot com, she said,

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Speaker 2: is a fantastic site for you to go on there

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Speaker 2: and purchase used gear, especially outdoor gear. So that can

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Speaker 2: be a great place to find some of those used

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Speaker 2: wool shirts. Lots of other stuff too, right, Yeah, yes,

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Speaker 2: it's not just shirts, ski boots, tents, sleeping bags, all

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Speaker 2: that kind of stuff. Yeah, yeah, exactly.

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Speaker 1: So, yeah, you might want to look on eBay, look

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Speaker 1: on gear trade, that kind of stuff.

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Speaker 2: Look to it's like a it's almost like eBay specific

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Speaker 2: for outdoor gear exactly.

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Speaker 1: Yeah, so yeah, big thanks to Amy. We're always up

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Speaker 1: for kind of new sites, new ways to save money.

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Speaker 1: Oh yeah, for the outdoor enthusiast. I think that's a

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Speaker 1: good one to at least to at least take a

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Speaker 1: look at. So Matt let's.

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Speaker 2: Okay, sorry real quick on that note, did you know

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Speaker 2: that some ariis have a used gear section within the.

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Speaker 1: Store in the store, I didn't know. Yes, well, a

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Speaker 1: lot of we talked about this before. How a lot

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Speaker 1: of retailers, especially specifically online like Levi's Lululemon, they're reselling

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Speaker 1: used gear a whole lot. Yeah these days, So glad

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Speaker 1: to hear Ario.

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Speaker 2: So I was actually I was recently at the Arii

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Speaker 2: in Greenville, South Carolina. So I didn't see this at

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Speaker 2: the one near us, But in Greenville, they had a

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Speaker 2: whole corner of the store and they just had some

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Speaker 2: shelves and it was straight up and it wasn't like

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Speaker 2: it wasn't just gear that had been returned because and

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Speaker 2: they weren't able to like repackage it or resale it.

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Speaker 2: Like it's literally items that have clearly been worn multiple

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Speaker 2: times were in better condition than others, but those prices

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Speaker 2: were crazy low. So if I mean, I didn't buy

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Speaker 2: anything because I didn't need anything, but I found that

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Speaker 2: it interesting that I had never seen that before. So

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Speaker 2: I'm not sure. If you've got an ri I ne

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Speaker 2: or you and you are a member of the co op,

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Speaker 2: check that out as well.

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Speaker 1: Yeah, that's kind of the in between from going to

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Speaker 1: directly to the Goodwill or your local thrift store or

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Speaker 1: Salvation Army or something.

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Speaker 2: It was almost at that buying something new.

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Speaker 1: It's like that middle of the road option, which for

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Speaker 1: a lot of people makes the most sense. All right,

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Speaker 1: let's mention the beer we're having on this episode. This

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Speaker 1: one's called Delusional Deformities. Of course, it's by Burial Brewing.

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Speaker 1: When it's got a crazy name like that. We'll give

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Speaker 1: our thoughts on this one at the end of the episode.

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Speaker 1: It's a lovely looking at ipa. But we are taking

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Speaker 1: listener questions and if you have a question for Matt

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Speaker 1: and I, we'd love to take it on an upcoming

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Speaker 1: Ask kind of Money episode. Just go to hot to

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Speaker 1: money dot com slash ask that are simple instructions so

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Speaker 1: you can record your voice memo, send it our way

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Speaker 1: and Hopefully we'll take it on the show soon. But

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Speaker 1: mattlet's get to our first one. This one comes from

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Speaker 1: a listener who needs a little bit of budgeting help

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Speaker 1: after a major purchase.

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Speaker 3: Hi, Jola, Matt. My name is Ni.

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Speaker 4: I am twenty seven. I am from Bocrouton, Florida. I've

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Speaker 4: been listening to you guys for about two months. I

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Speaker 4: really enjoyed the podcast and I look forward to every

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Speaker 4: new episode. I purchased my first time about a year

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Speaker 4: and a half ago, and I used up the majority

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Speaker 4: of my savings towards it for the down payment, furnishing it, etc.

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Speaker 4: Everything that comes with a new home. I have been

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Speaker 4: trying to rebuild my savings since then, So I have

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Speaker 4: two questions for you guys today. About a third to

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Speaker 4: a half of my monthly paycheck goes towards my living expenses,

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Speaker 4: my mortgage, my groceries. I want to be able to

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Speaker 4: open a high yield savings account. Since I've been banking

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Speaker 4: with a big bank since that was about sixteen. What

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Speaker 4: would be your recommendation for a high healed savings account

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Speaker 4: and a system or software I can use for my

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Speaker 4: monthly budgets so that I can hold myself accountable to

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Speaker 4: have savings set up for my unforseeable future. Any tips, tricks,

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Speaker 4: recommendations would be so helpful. Thank you guys so much.

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Speaker 4: I really appreciate your help.

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Speaker 2: Joel. It's kind of fun to start off with a

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Speaker 2: question that we can totally slam dunk. But nah, we've

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Speaker 2: got a great answer for you.

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Speaker 1: But we're around a brick a few of the other

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Speaker 1: ones later.

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Speaker 4: Now.

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Speaker 2: We are really happy to hear that you purchased your

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Speaker 2: home at an excellent time. Hopefully you know you were

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Speaker 2: able to get in there before rates went sky high.

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Speaker 2: I hope that you were able to lock into mortgage

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Speaker 2: like in that three percent range. That would be awesome.

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Speaker 2: And we're also glad to hear that you're using less

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Speaker 2: than half of your monthly income in order to go

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Speaker 2: towards living expenses. This actually kind of fits in line

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Speaker 2: with the most basic sort of budget approach out there.

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Speaker 2: It's the fifty thirty twenty method, where fifty percent of

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Speaker 2: your income goes to pay for your monthly needs. Essentially

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Speaker 2: all the basics, but then that leads you transportation, housing exactly,

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Speaker 2: and clothing. Way did you say clothing, No, I didn't

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Speaker 2: take clothkykay protect yourself from the elements, buttrade dot com.

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Speaker 1: Yeah, all the Marina wall shirts you need need to

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Speaker 1: be factored into that fifteen.

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Speaker 2: But then you've got thirty percent of your income that's

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Speaker 2: left for once, and then twenty percent then goes towards

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Speaker 2: saving and investing. My guess is that you are making

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Speaker 2: that happen based on the information that you shared, the

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Speaker 2: fact that you were able to, first of all, even

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Speaker 2: save up that down payment. But it Yeah, basically it

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Speaker 2: sounds like that your finances are generally speaking in a

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Speaker 2: good spot.

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Speaker 1: Yeah. I think it's just a weird thing to see

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Speaker 1: your savings depleted all at once for one major purchase.

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Speaker 1: And that is what happens when you buy home, So

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Speaker 1: it can freak you out from a financial perspective, even

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Speaker 1: if you're prepared, and even if your budget moving forward

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Speaker 1: fits into that fifty to thirty twenty approach, it just

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Speaker 1: feels like you're replenishing something that took a long time

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Speaker 1: to build up.

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Speaker 2: And I get that.

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Speaker 1: There's like it feels like you're you're climbing up a

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Speaker 1: treadmill that is inclined. But still, it doesn't mean you

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Speaker 1: made a bad decision.

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Speaker 2: Yeah, hopefully yeah, no, I hopefully you do not have

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Speaker 2: buyer's remorse again, because you have the benefit of seeing

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Speaker 2: where the market went not only with home values, but

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Speaker 2: also with interest rates.

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Speaker 1: And also just hopefully yeah, buying a home you love

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Speaker 1: where you live and that you're sinking into the community

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Speaker 1: basically where you've purchased at home. But let's get to

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Speaker 1: kind of your questions, specifically in the aftermath of that

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Speaker 1: home purchase. You've only been listening, like you said, for

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Speaker 1: a couple of months, so you might not yet know

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Speaker 1: are disdain for big banks. We do talk about a

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Speaker 1: free mention.

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Speaker 2: IM not sure if we have, probably at.

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Speaker 1: Least once a month. It comes up that our disdain

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Speaker 1: runs deep, and Wells Fargo is probably our least favorite,

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Speaker 1: given the way they've abused customers in recent years, the

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Speaker 1: many ways in which they've been fined, they've taken advantage

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Speaker 1: of customers, and they've been held accountable for it, probably

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Speaker 1: some ways in which they haven't been held accountable, at

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Speaker 1: least to the extent they needed to be. But all

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Speaker 1: of the big banks offer paltry rates of return, and

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Speaker 1: so we're glad to hear that you're ready to leave.

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Speaker 1: I think she said. Nie said she'd been banking with

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Speaker 1: the big banks, that she was a team and it

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Speaker 1: is it's time, I think for ny to do the

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Speaker 1: adulting move and to open up account elsewhere, specifically with

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Speaker 1: a bank that's going to offer better services but also

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Speaker 1: higher rates of interest on the money that she's got

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Speaker 1: sitting there in that those savings and checkings accounts.

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Speaker 2: Yeah, I think it could be difficult to do because

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Speaker 2: of the fact that she's been with them for so long,

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Speaker 2: like she might have an emotional connection, but that's not

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Speaker 2: a good reason. Well, you know, it's like kind of

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Speaker 2: like the first bank account that you have. You're used

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Speaker 2: to seeing that logo at the top of the statement,

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Speaker 2: you're used to receiving the emails, and I think that

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Speaker 2: that could lead to you potentially staying put. But n

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Speaker 2: I is listening to how to money. She knows that

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Speaker 2: there is money that she's leaving on the table. I mean,

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Speaker 2: especially if she's been I think, yeah, maybe since she

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Speaker 2: was sixteen, is what she said. That's a lot of

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Speaker 2: interest over the years that she has failed to receive.

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Speaker 1: Well, especially now, especially now in a different interest rate

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Speaker 1: environment where you can actually make money on your saving

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Speaker 1: that is true. Well, and I wonder if is it

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Speaker 1: like Stockholm syndrome? Is that what it is when the

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Speaker 1: comes a love who's like, yeah, yeah, that might always

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Speaker 1: happening here with night, but hopefully not. Hopefully she can

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Speaker 1: overcome that and move her money elsewhere to a bank that,

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Speaker 1: like I don't know, cares about her and and wants

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Speaker 1: to hear her succeed.

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Speaker 2: Well, there are what's it when you give human attributes?

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Speaker 2: Is that it? Yeah, I'm not going to go that

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Speaker 2: far and say that there are banks that actually care

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Speaker 2: about you. They're still looking make a profit, right sure,

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Speaker 2: but they are providing benefits and offerings that are that

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Speaker 2: far exceed what it is that the big banks are offering.

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Speaker 2: And so we're particularly fond of Ally Bank. I've been

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Speaker 2: with them for a number of years. Capital one, Joel,

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Speaker 2: you've been with him well, Capital one back in the day.

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Speaker 2: We've talked about this before too, was I INNG Direct

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Speaker 2: and ever since then they've been able to hold on

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Speaker 2: to those very competitive interest rates. Let's be honest.

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Speaker 1: I've got multiple bank accounts, Matt, and it is I

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Speaker 1: like to test them out. I like to know which

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Speaker 1: ones are the best. I've got three. It's like Capital One,

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Speaker 1: Discover and C are the ones I use the most.

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Speaker 2: Dabble a little bit, yeah, yeah, but those are also

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Speaker 2: great options that you mentioned as the lot and those

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Speaker 2: aren't the only good banks out there. Actually, there's a

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Speaker 2: robo advisor firm, Betterment. They've got a great savings product. Essentially,

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Speaker 2: it is worth noting it's not technically a bank, but

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Speaker 2: they've got what they call a cash reserve account where

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Speaker 2: your money is swept out to the other banks. And

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Speaker 2: so because of that, your funds are FDIC insured though,

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Speaker 2: and actually because your money is in accounts with multiple banks,

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Speaker 2: your funds are actually insured up to two million dollars

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Speaker 2: as opposed to the two hundred and fifty thousand dollars

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Speaker 2: that you get with just a singular bank.

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Speaker 1: So nine is flush with cash.

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Speaker 2: She's flushed.

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Speaker 1: That's a good opportunity to take vision.

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Speaker 2: She happens to like keeping like four hundred years worth

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Speaker 2: of living expenses on hand, which we don't recommend doing,

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Speaker 2: but saving these accounts they are paying close to that

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Speaker 2: five percent now, which means more realistically, if you've got

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Speaker 2: maybe like ten thousand bucks in savings, like you're gonna

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Speaker 2: snag five hundred dollars over the course of a year

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Speaker 2: instead of essentially no money, like negative money. They're gonna

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Speaker 2: they're taking your money. And plus there are fewer fees

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Speaker 2: with the online banks as well, because like literally you

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Speaker 2: are paying money to some of these big banks because

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Speaker 2: of the fees that they're charging you, and these great

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Speaker 2: online banks they don't do that. But n I congrats

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Speaker 2: on finally ditching those big banks, kicking those guys to

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Speaker 2: the curb. Yeah.

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Speaker 1: I love to see it, especially especially when the trend

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Speaker 1: is going in the opposite direction. Right, the big banks

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Speaker 1: keep getting bigger, but they aren't getting any smarter or

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Speaker 1: more customer focused, that's for sure. And on the note

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Speaker 1: of a budgeting system software, I think so much Matt

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Speaker 1: depends on a person's personality. Matt, You're the quick essential

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Speaker 1: spreadsheet nerd. I Oh, I'm the exact opposite. I lack

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Speaker 1: of the numbers. You literally have every single budget for

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Speaker 1: the last fifteen years in your in your spreadsheets you could.

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Speaker 2: Pull up My first one was from two thousand and seven.

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Speaker 1: What you spent on groceries? Yeah, back back in O

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Speaker 1: eight if you want to talk this stuff.

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Speaker 2: Two thousand and seven, when Kate and I got married.

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Speaker 2: It was probably pretty very little.

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Speaker 1: Yeah, I'm not gonna lie. It's impressive. It's impressive, but

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Speaker 1: and you know that actually whenever is going to help

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Speaker 1: you though, mattele linked his budget template in the show

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Speaker 1: notes if that, if that's going to help you with

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Speaker 1: some sort of bigcel spreadsheet, if that's going to be

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Speaker 1: your jam. Well it's free, which is nice. And it's true.

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Speaker 1: Software can't fix your budget, but it can help if

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Speaker 1: you're committed and if it kind of pushes you to

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Speaker 1: be more active when it comes to your budget and

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Speaker 1: your finances. And so we're big fans of wye app.

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Speaker 1: You need a budget, right, and it costs a little

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Speaker 1: bit of money, but a lot of users claim basically

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Speaker 1: that it saves them way more than it costs them.

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Speaker 2: Yeah. Yeah, because of the behavioral side exactly, Like, and

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Speaker 2: I completely believe that. I think were you to say, well,

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Speaker 2: I'm not going to spend the small amount of money

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Speaker 2: that it costs every single month, well I think it's

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Speaker 2: worth testing it out and seeing it's sort of like

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Speaker 2: sort of like gold and going to Aldi. People are like, oh,

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Speaker 2: I don't want to go to Aldi. It's like it's

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Speaker 2: it's too cheap. But well, how about you give it

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Speaker 2: a shot and see if it truly does cut your

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Speaker 2: grocery bill about thirty percent, which is what it did

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Speaker 2: for us, and that was enough to make us stick around,

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Speaker 2: that's for sure. Yeah, I think for the same thing

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Speaker 2: with WHYAP.

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Speaker 1: Most people who actually use it, Wynab is going to

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Speaker 1: be one of those things where what you spend feels

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Speaker 1: like a drop in the bucket compared to the transformation

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Speaker 1: it can have on you on your money and how

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Speaker 1: you handle it. And totally plus you can try it

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Speaker 1: for free for thirty four days. We'll put it into

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Speaker 1: it in the show notes. But it's one of those

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Speaker 1: things where I think Wynab has, yeah, such such a

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Speaker 1: massive impact on people who use it that I don't

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Speaker 1: hesitate to recommend it to anybody who's like, I want

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Speaker 1: some software to help me with budgeting. I mean, why

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Speaker 1: Nab is number one in that regard.

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Speaker 2: But the only problem with software is that it, in

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Speaker 2: my mind, it's got this way of being forgotten about,

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Speaker 2: right like it's on your computer or your laptop. You

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Speaker 2: set it up, you give it a try, But if

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Speaker 2: it's not top of mind, then it may not necessarily

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Speaker 2: translate into you rebuilding your emergency fund as quickly as

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Speaker 2: you'd hope for. So in addition to utilizing the fanciest

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Speaker 2: software out there, you might want to consider something super

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Speaker 2: analog and basic, like drawing out one of those fundraiser

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Speaker 2: thermometers like that you see at schools who have We've

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Speaker 2: got campaigns going on, but at the top, it's just

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Speaker 2: simply your fully funded emergency fund, chart your progress, and

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Speaker 2: then just stick that sheet of paper up in your fridge.

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Speaker 2: Color it in as you make some progress, because I

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Speaker 2: would want to be reminded of it multiple, multiple times

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Speaker 2: a day, just so that it's front and center, so

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Speaker 2: that it's regularly on my mind. It's not just something

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Speaker 2: I revisit at the end of the week or at

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Speaker 2: the end of the month. You know, when you check

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Speaker 2: in to see how you've done with your budget as

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Speaker 2: you are reconciling some of your expenses. You want a

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Speaker 2: way to like emotionally feel it. That way. When you're

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Speaker 2: out with your friends, you're probably not gonna not necessarily

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Speaker 2: going to think of the software or the spreadsheet that

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Speaker 2: you've got on your computer, which, by the way, maybe

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Speaker 2: it's been like twenty days since you last saw that thing,

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Speaker 2: but there's a good chance that you'll remember that thermometer

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Speaker 2: or whatever, you know, like a chart or filling in

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Speaker 2: some blocks or something like that that you saw that

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Speaker 2: morning because it was magnetized to your fridge.

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Speaker 1: Yeah, that could be that perfect combination of digital and

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Speaker 1: analog right where you're you're maybe using something like whye

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Speaker 1: app to help you with the nuts and bolts, and

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Speaker 1: you're checking in once a week or every other week

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Speaker 1: with that, but also that daily physical reminder of something

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Speaker 1: on your fridge or on your bathroom mirror. I kind

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Speaker 1: of like that both and approach.

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Speaker 2: Yeah, well, and I mentioned that too, because I mean,

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Speaker 2: essentially that's what my wife does. That's what Kate does

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Speaker 2: with our calendar. Like we've got a digital calendar that

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Speaker 2: we communicate mostly with and when she sees things change

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Speaker 2: on there, but she also keeps a physical calendar that

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Speaker 2: she fills out by hand where she's able to see

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Speaker 2: multiple months at the same time, because she likes to

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Speaker 2: have an overall picture, an overall scope as to what's

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Speaker 2: going on in the coming months. In that way, her

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Speaker 2: and I are kind of similar. We like to we

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Speaker 2: like the data, everything going in its proper place. Yeah,

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Speaker 2: but na I hope that that gets you pointed in

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Speaker 2: the right direction and that you are able to replenish

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Speaker 2: that emergency fund, that you're able to get back to

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Speaker 2: three to six months worth of living expenses.

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Speaker 1: Sooner rather than later, hopefully so our bat. We've got

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Speaker 1: more listener questions to get to, including one listener wants

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Speaker 1: to know about a TikTok mortgage trend and whether this

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Speaker 1: could save him big bucks. I don't believe we've ever

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Speaker 1: talked about this on the show before, and Nope, we'll

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Speaker 1: talk about it coming up that and more right after this.

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Speaker 1: All right, we are back from the break, Joel, and

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Speaker 1: we've got a question from a listener.

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Speaker 2: Who has a cush job, but is it too cush?

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Speaker 3: Hey, Matt and Joel, this is Leah from Kansas City, Missouri.

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Speaker 3: I'm a fairly new listener to your podcast, but I've

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Speaker 3: been really enjoying it. It comes at a great time

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Speaker 3: in my life when I'm trying to take better control

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Speaker 3: of my finances and plan for the future. I just

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Speaker 3: recently listened to your episode on if early retirement is

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Speaker 3: a good goal or not, and it really provokes some

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Speaker 3: thinking for me, and I wanted to ask you how

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Speaker 3: you recommend comparing I guess, a well paying job versus say,

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Speaker 3: a job you're more passionate about. For example, you know,

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Speaker 3: if I'm in a job right now that is the

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Speaker 3: best paying job I've ever had, and it's opened up

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Speaker 3: a lot of freedom for me and stress relief, but

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Speaker 3: isn't necessarily inspiring to me on a day to day basis. However,

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Speaker 3: most of the jobs in my preferred field or area

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Speaker 3: are not very well paid or tend to be more

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Speaker 3: physically demanding, etc. And so I was just curious, how

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Speaker 3: would you go about comparing the pros and cons of

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Speaker 3: a pay cut for something that you're more passionate about,

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Speaker 3: or sticking it out for something that you know is

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Speaker 3: it a good enough, fine enough job, but maybe a

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Speaker 3: little boring or unfulfilling. I'd love to hear your thoughts things, Matt.

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Speaker 1: I really like this question. It's an interesting one. There's

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Speaker 1: a lot to discuss.

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Speaker 2: These are the like, in my mind, these are the

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Speaker 2: best questions, like the ones that like, there's not necessarily

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Speaker 2: going to be a clear cut answer, but that's what

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Speaker 2: makes it so interesting and so fun as opposed to

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Speaker 2: just like, I mean different, and I don't want you

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Speaker 2: to think that your question wasn't great as well, but

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Speaker 2: with yours, there's a slam dunk answer and we're not

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Speaker 2: going to break it like you said earlier, Joel. But

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Speaker 2: Lee's question has a little more nuance going.

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Speaker 1: On for sure.

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Speaker 2: For sure.

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Speaker 1: And Leah, first off, like, we're glad to have you

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Speaker 1: on board, thanks for listening to the podcast. And first,

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Speaker 1: I think that work can be fulfilling. I think it

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Speaker 1: can offer more than just a paycheck. And I think

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Speaker 1: that that really is a fortunate reality of our modern

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Speaker 1: age that that was not the case necessarily a few

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Speaker 1: hundred years ago. It's specialization has allow people to really

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Speaker 1: pursue their interests, no matter how niche they might be,

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Speaker 1: and find a way to turn maybe even an obsession

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Speaker 1: into making a decent living and sometimes one maybe that

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Speaker 1: might make you more than you'd otherwise be able to

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Speaker 1: make if you kind of were to go more traditional routes.

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Speaker 1: But I will say this, the flip side of it is,

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Speaker 1: I also think a lot of young folks have been

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Speaker 1: sold a bill of goods when it comes to how

436
00:19:23,359 --> 00:19:27,600
Speaker 1: they should experience work and perceive it. They expect their

437
00:19:27,680 --> 00:19:32,159
Speaker 1: job to provide meaning at this existential level, and I

438
00:19:32,200 --> 00:19:35,320
Speaker 1: just don't think any job is really able to offer that,

439
00:19:35,680 --> 00:19:37,239
Speaker 1: And so I think the more we search for that,

440
00:19:37,320 --> 00:19:40,960
Speaker 1: the more we're going to be probably left wanting, because

441
00:19:41,080 --> 00:19:43,240
Speaker 1: it's really hard for work to live up to this

442
00:19:43,280 --> 00:19:45,520
Speaker 1: reality that I think we used to find in other places.

443
00:19:46,280 --> 00:19:48,639
Speaker 1: Even a job you really enjoy, right, is going to

444
00:19:48,680 --> 00:19:51,639
Speaker 1: have a hard time paying those sorts of dividends, because

445
00:19:51,680 --> 00:19:54,480
Speaker 1: even those jobs have downsides, they have hard days, even

446
00:19:54,680 --> 00:19:57,119
Speaker 1: a job that you love right, like Matt, we like

447
00:19:57,160 --> 00:20:00,520
Speaker 1: what we do here, and I am excited to get

448
00:20:00,520 --> 00:20:03,240
Speaker 1: to do to a podcast with you three days a

449
00:20:03,240 --> 00:20:04,480
Speaker 1: week and all the other things that we do.

450
00:20:04,600 --> 00:20:08,040
Speaker 2: But but I'm waiting, waiting for the student drop.

451
00:20:08,160 --> 00:20:10,400
Speaker 1: But I don't like wake up smiling every day because

452
00:20:10,400 --> 00:20:11,880
Speaker 1: I'm like, I can't wait to get in there and pocket.

453
00:20:11,960 --> 00:20:14,080
Speaker 1: I mean, there are parts of the job that are

454
00:20:14,080 --> 00:20:17,200
Speaker 1: not my favorites, and there are times where it's more

455
00:20:17,240 --> 00:20:19,479
Speaker 1: joyous than others. And so even when you love what

456
00:20:19,520 --> 00:20:21,840
Speaker 1: you do, even when you're in the fortune position that

457
00:20:21,880 --> 00:20:23,320
Speaker 1: we're in to get to work with your best buddy

458
00:20:23,320 --> 00:20:25,840
Speaker 1: and do something that you are deeply connected to, it

459
00:20:25,880 --> 00:20:29,320
Speaker 1: doesn't mean that every day is like rainbows and sunshine.

460
00:20:29,359 --> 00:20:31,000
Speaker 2: That's right. Let me you know, some days we're just

461
00:20:31,000 --> 00:20:33,520
Speaker 2: like knocking heads a little bit. And that makes me

462
00:20:33,560 --> 00:20:35,199
Speaker 2: think of this quote Joel that so you and I,

463
00:20:35,400 --> 00:20:36,720
Speaker 2: like I feel like we say this to each other

464
00:20:36,760 --> 00:20:39,159
Speaker 2: all the time. There's probably like five or so that

465
00:20:39,200 --> 00:20:43,240
Speaker 2: you're guessing from at this point, But this is a

466
00:20:43,280 --> 00:20:46,359
Speaker 2: quote from Thomas Soul and he says this, there are

467
00:20:46,400 --> 00:20:50,399
Speaker 2: no solutions that are only trade offs. And Leah, this

468
00:20:50,520 --> 00:20:52,680
Speaker 2: is exactly what you're gonna have to do. You're gonna

469
00:20:52,720 --> 00:20:54,479
Speaker 2: need to look at some of these different goals that

470
00:20:54,560 --> 00:20:57,880
Speaker 2: you might have for yourself and then to determine if

471
00:20:58,359 --> 00:21:00,960
Speaker 2: a different, potentially lower pay job is going to be

472
00:21:01,000 --> 00:21:04,040
Speaker 2: worth it for you, and to maybe run the risk

473
00:21:04,080 --> 00:21:07,360
Speaker 2: of over simplifying it. It's important to note that there

474
00:21:07,440 --> 00:21:11,160
Speaker 2: are financial goals and lifestyle goals as well, and you're

475
00:21:11,160 --> 00:21:13,800
Speaker 2: going to have to consider both of those. And I

476
00:21:13,840 --> 00:21:17,200
Speaker 2: mentioned that because you've even mentioned that you've more recently,

477
00:21:17,560 --> 00:21:19,560
Speaker 2: and I wrote this down because it stood out to me,

478
00:21:19,600 --> 00:21:22,760
Speaker 2: but quote taking control of your finances and planning for

479
00:21:22,800 --> 00:21:25,959
Speaker 2: the future. So when I heard that, like, I assume

480
00:21:26,040 --> 00:21:27,920
Speaker 2: that you know when you said that that you've got

481
00:21:27,920 --> 00:21:30,520
Speaker 2: financial goals in mind. But either way, you're going to

482
00:21:30,600 --> 00:21:34,199
Speaker 2: have to personally weigh the pros, weigh the cons of

483
00:21:34,240 --> 00:21:37,800
Speaker 2: a higher paying but low fulfilling job with the job

484
00:21:37,840 --> 00:21:39,639
Speaker 2: that maybe you know may not pay as well, but

485
00:21:39,760 --> 00:21:41,760
Speaker 2: you are going to be much more passionate about it.

486
00:21:41,960 --> 00:21:45,480
Speaker 2: And unfortunately, there isn't a simple formula that's just going

487
00:21:45,520 --> 00:21:48,879
Speaker 2: to give you the quote unquote right answer, because the

488
00:21:48,960 --> 00:21:51,720
Speaker 2: right answer for you might be the wrong answer for

489
00:21:51,760 --> 00:21:54,320
Speaker 2: the next guy. Right. But if you're able to think

490
00:21:54,359 --> 00:21:57,359
Speaker 2: through your specific goals and when it is that you

491
00:21:57,400 --> 00:21:59,720
Speaker 2: want to achieve those different milestones in your life, that

492
00:21:59,720 --> 00:22:02,359
Speaker 2: should help to inform you which job it is that

493
00:22:02,400 --> 00:22:05,119
Speaker 2: you should pursue. If you're if you're looking to if

494
00:22:05,119 --> 00:22:08,000
Speaker 2: you've got more financial goals basically on your on your horizon,

495
00:22:08,359 --> 00:22:10,760
Speaker 2: then you know, maybe you hang on to that job.

496
00:22:11,040 --> 00:22:12,679
Speaker 2: But if some of the goals that you have for

497
00:22:12,720 --> 00:22:17,520
Speaker 2: yourself are more personal in nature, well, is if that

498
00:22:17,520 --> 00:22:19,240
Speaker 2: that lower paying job is going to allow you to

499
00:22:19,280 --> 00:22:22,000
Speaker 2: achieve some of those personal some of those lifestyle goals,

500
00:22:22,040 --> 00:22:24,879
Speaker 2: and then maybe that's what you should be considering. But

501
00:22:24,920 --> 00:22:27,040
Speaker 2: it also makes me think of our interview, our conversation

502
00:22:27,080 --> 00:22:30,000
Speaker 2: with Simone stoles Off, and he wrote the good Enough job,

503
00:22:30,400 --> 00:22:33,359
Speaker 2: and I love that at the beginning, he basically laid

504
00:22:33,359 --> 00:22:37,440
Speaker 2: the framework and he said that it's neither more noble

505
00:22:37,560 --> 00:22:40,240
Speaker 2: to love your job and for it to basically be

506
00:22:40,280 --> 00:22:42,800
Speaker 2: your passion or for you to view your job as

507
00:22:42,840 --> 00:22:45,800
Speaker 2: just a way to pay the bills. I think regardless

508
00:22:45,800 --> 00:22:47,359
Speaker 2: of which path that you can take, you can do

509
00:22:47,440 --> 00:22:47,960
Speaker 2: it well.

510
00:22:48,680 --> 00:22:51,800
Speaker 1: Completely agreed. And and one of the things that Leah

511
00:22:51,880 --> 00:22:55,040
Speaker 1: said was that she didn't feel inspired going into work,

512
00:22:55,320 --> 00:22:56,960
Speaker 1: and I just want to I just want to say

513
00:22:57,040 --> 00:22:59,639
Speaker 1: that I think that's normal. I don't think most people

514
00:23:00,080 --> 00:23:02,639
Speaker 1: go into work feeling inspired. And is that a noble

515
00:23:02,680 --> 00:23:05,920
Speaker 1: goal or is that fine or actually probably pretty cool

516
00:23:06,000 --> 00:23:08,880
Speaker 1: to feel inspired going into work every day? Yeah, I do.

517
00:23:08,960 --> 00:23:11,400
Speaker 1: I think it's possible to be inspired by what you do.

518
00:23:11,600 --> 00:23:13,720
Speaker 1: But that again comes with trade offs. Like you mentioned, Matt,

519
00:23:13,760 --> 00:23:17,280
Speaker 1: the lovely Thomas Soul quote, which informs so much of

520
00:23:17,359 --> 00:23:19,840
Speaker 1: how I make decisions. It's like, Okay, there is no

521
00:23:19,880 --> 00:23:21,359
Speaker 1: perfect how do we what's the best?

522
00:23:21,480 --> 00:23:22,480
Speaker 2: So what's the best off.

523
00:23:22,560 --> 00:23:24,240
Speaker 1: What's the best solution given that we're going to miss

524
00:23:24,280 --> 00:23:26,000
Speaker 1: out on this, this, and this if we go in

525
00:23:26,040 --> 00:23:28,640
Speaker 1: this direction, well, you know, and I'm glad you found

526
00:23:28,640 --> 00:23:31,520
Speaker 1: some financial freedom with this current job, that's important, and

527
00:23:31,560 --> 00:23:34,439
Speaker 1: if it offers enough financial and time freedom to pursue

528
00:23:34,480 --> 00:23:38,040
Speaker 1: other hobbies and interests, I wouldn't necessarily look at gift

529
00:23:38,040 --> 00:23:41,840
Speaker 1: force in the mouth. I mean, sometimes that is the

530
00:23:41,880 --> 00:23:44,480
Speaker 1: best thing, and it actually is when when you think

531
00:23:44,480 --> 00:23:47,199
Speaker 1: about the fundamental necessity of a job, it is to

532
00:23:47,200 --> 00:23:50,159
Speaker 1: provide economic stability for you and for your family. But

533
00:23:50,200 --> 00:23:52,280
Speaker 1: if it's constraining you in other ways, like you're working

534
00:23:52,280 --> 00:23:54,560
Speaker 1: fifty five plus hours a week, or you know, if

535
00:23:55,600 --> 00:23:58,800
Speaker 1: it's just costing too much and you could do just

536
00:23:58,880 --> 00:24:01,359
Speaker 1: fine on a reduce salary and you'll be able to

537
00:24:01,400 --> 00:24:04,200
Speaker 1: work less hours and just enjoy your life more, well,

538
00:24:04,240 --> 00:24:06,440
Speaker 1: I mean it's at least worth looking to see what

539
00:24:06,640 --> 00:24:08,960
Speaker 1: else is out there, right, And the reality is, the

540
00:24:09,080 --> 00:24:11,320
Speaker 1: key that's going to allow you to take the ideal

541
00:24:11,440 --> 00:24:13,960
Speaker 1: job when or if it does come along, is up

542
00:24:14,040 --> 00:24:17,240
Speaker 1: in your savings rate. That is what gives you more options.

543
00:24:17,600 --> 00:24:20,520
Speaker 1: And I've recently heard somebody say, Matt that you in

544
00:24:20,560 --> 00:24:22,960
Speaker 1: your career you say yes a lot early on so

545
00:24:23,040 --> 00:24:25,160
Speaker 1: you can say no later. You're kind of front loading

546
00:24:25,200 --> 00:24:27,280
Speaker 1: the sacrifice. And I think that's really true. I mean,

547
00:24:27,280 --> 00:24:29,399
Speaker 1: I think in your twenties. You're probably doing some of

548
00:24:29,400 --> 00:24:31,840
Speaker 1: the grunt work, some of the things that you don't

549
00:24:31,840 --> 00:24:34,159
Speaker 1: want to be doing when you're forty fifty sixty, but

550
00:24:34,240 --> 00:24:37,040
Speaker 1: you're doing them to kind of accelerate, to advance, to

551
00:24:37,040 --> 00:24:40,040
Speaker 1: get to the place where you have more control and

552
00:24:40,080 --> 00:24:43,159
Speaker 1: you can create more autonomy, whether that's going down the

553
00:24:43,359 --> 00:24:45,840
Speaker 1: entrepreneurial path or whether that's just ending up in a

554
00:24:45,880 --> 00:24:49,000
Speaker 1: position where you get to kind of decide what it

555
00:24:49,040 --> 00:24:50,159
Speaker 1: is you want to be doing with your time a

556
00:24:50,160 --> 00:24:52,719
Speaker 1: little bit more. You're hopefully not only just building up

557
00:24:52,720 --> 00:24:57,240
Speaker 1: the career cloud, but you're simultaneously building up the financial

558
00:24:57,280 --> 00:25:00,479
Speaker 1: reserves that just give you a whole lot more right

559
00:25:00,480 --> 00:25:01,960
Speaker 1: as you get older. And so some of that just

560
00:25:01,960 --> 00:25:04,679
Speaker 1: depends on your age, where you're at your career, and

561
00:25:04,720 --> 00:25:07,120
Speaker 1: whether or not you're financially at the point yet where

562
00:25:07,119 --> 00:25:09,439
Speaker 1: you feel like you can take the plunge into the

563
00:25:09,560 --> 00:25:13,080
Speaker 1: joyful career that pays less versus the one that allows

564
00:25:13,080 --> 00:25:16,040
Speaker 1: you to make more progress right now, so you can

565
00:25:16,080 --> 00:25:18,920
Speaker 1: transition to that a little bit later. It's so much

566
00:25:18,920 --> 00:25:20,639
Speaker 1: depends on what's going on with the finances of that.

567
00:25:20,640 --> 00:25:23,720
Speaker 2: Actually, yeah, but don't quit without actually having a backup plan.

568
00:25:23,880 --> 00:25:26,280
Speaker 2: Right where you're just hoping that that dream job is

569
00:25:26,320 --> 00:25:29,480
Speaker 2: going to fall into your lap, you'd be leaving yourself

570
00:25:29,480 --> 00:25:32,600
Speaker 2: financially exposed where you actually do that, But it is always,

571
00:25:32,720 --> 00:25:34,520
Speaker 2: like you mentioned, kind of like keeping an eye open

572
00:25:34,560 --> 00:25:37,080
Speaker 2: for jobs role. I think it is worth checking the

573
00:25:37,200 --> 00:25:40,200
Speaker 2: job listing, seeing what's out there, maintaining your network for sure,

574
00:25:40,480 --> 00:25:43,320
Speaker 2: maybe even applying when you come across some opportunities that

575
00:25:43,440 --> 00:25:45,920
Speaker 2: might be more up your alley. And even going through

576
00:25:45,920 --> 00:25:48,640
Speaker 2: that process, might you might discover that, oh, actually they're

577
00:25:48,640 --> 00:25:51,359
Speaker 2: willing to pay more because of experience, maybe that you're

578
00:25:51,400 --> 00:25:52,879
Speaker 2: able to bring to the table, even if it's in

579
00:25:52,920 --> 00:25:56,280
Speaker 2: a completely different industry. But if you've got enough financial margin,

580
00:25:56,440 --> 00:25:59,640
Speaker 2: if you've been making hey while the sun shines, while

581
00:25:59,640 --> 00:26:02,000
Speaker 2: you are currently making more at your at your job,

582
00:26:02,440 --> 00:26:04,399
Speaker 2: well you're going to be able to afford to balance

583
00:26:04,480 --> 00:26:07,040
Speaker 2: and even take a pay cut if that is what's

584
00:26:07,080 --> 00:26:09,800
Speaker 2: going to be required. That's a great position to be in.

585
00:26:10,240 --> 00:26:12,240
Speaker 2: And you know, they say that when you're negotiating, the

586
00:26:12,480 --> 00:26:16,640
Speaker 2: person who basically cares the least they win, and that's

587
00:26:16,640 --> 00:26:20,160
Speaker 2: totally true, and it also applies in this situation because

588
00:26:20,200 --> 00:26:22,720
Speaker 2: if you're not finding finding that fulfillment anymore in that job,

589
00:26:23,040 --> 00:26:25,640
Speaker 2: and you're able to say, well, I don't really care anymore. Well,

590
00:26:25,680 --> 00:26:27,879
Speaker 2: you're going to be able to take a job even

591
00:26:28,040 --> 00:26:31,359
Speaker 2: if it pays less, if you are financially prepared, because

592
00:26:31,400 --> 00:26:34,400
Speaker 2: the more financial security that you have, the more you're

593
00:26:34,440 --> 00:26:36,120
Speaker 2: going to be able to choose your own adventure. Right,

594
00:26:36,160 --> 00:26:37,760
Speaker 2: you are going to be able to turn down that

595
00:26:37,840 --> 00:26:40,240
Speaker 2: higher salary for a job that you like a whole

596
00:26:40,280 --> 00:26:42,879
Speaker 2: lot more. This is essentially what happens once you've reached

597
00:26:43,040 --> 00:26:46,840
Speaker 2: coast fire. So you know, assuming that's setting aside enough

598
00:26:46,880 --> 00:26:49,960
Speaker 2: for retirement, that that's a financial goal of yours. Once

599
00:26:50,040 --> 00:26:51,840
Speaker 2: you've built up enough of a nest egg that you

600
00:26:51,840 --> 00:26:56,720
Speaker 2: don't need to necessarily contribute to your to a retirement anymore, well,

601
00:26:56,760 --> 00:26:59,720
Speaker 2: you should then feel complete freedom to pursue another career

602
00:26:59,800 --> 00:27:02,600
Speaker 2: if that is a lifestyle goal of yours. But I

603
00:27:02,640 --> 00:27:05,600
Speaker 2: honestly there's one other way too. I think that you

604
00:27:05,640 --> 00:27:07,880
Speaker 2: are going to be able to potentially have your cake

605
00:27:07,920 --> 00:27:10,480
Speaker 2: and eat it too, because what's interesting is that you

606
00:27:10,680 --> 00:27:13,399
Speaker 2: mentioned that the job that you have now that you

607
00:27:13,440 --> 00:27:15,600
Speaker 2: get paid a lot, but that it also doesn't have

608
00:27:15,640 --> 00:27:18,520
Speaker 2: any stress, which is funny. Most of the time folks

609
00:27:18,520 --> 00:27:20,879
Speaker 2: are like those two things are at odds. They're like, Oh,

610
00:27:20,920 --> 00:27:22,280
Speaker 2: I make a ton of money, but it's a really

611
00:27:22,280 --> 00:27:25,000
Speaker 2: stressful job. And so I feel like that even pushes

612
00:27:25,040 --> 00:27:27,960
Speaker 2: you in the direction of maintaining that job, because if

613
00:27:28,000 --> 00:27:30,240
Speaker 2: you don't have any stress there and all it is

614
00:27:30,320 --> 00:27:33,800
Speaker 2: that you're looking for is maybe some additional fulfillment or

615
00:27:33,840 --> 00:27:36,119
Speaker 2: satisfaction from that job, I would say to try to

616
00:27:36,160 --> 00:27:38,520
Speaker 2: find a way to transform that job that you have

617
00:27:39,200 --> 00:27:42,640
Speaker 2: into a job where you are able to garner more

618
00:27:43,200 --> 00:27:46,119
Speaker 2: self satisfaction. And I think that might be by finding

619
00:27:46,119 --> 00:27:49,320
Speaker 2: different ways to challenge yourself at that job. And it's

620
00:27:49,359 --> 00:27:52,359
Speaker 2: not necessarily just to create like drama at work or

621
00:27:52,480 --> 00:27:55,119
Speaker 2: to make your life unnecessarily hard. But if you are

622
00:27:55,119 --> 00:27:58,080
Speaker 2: someone who thrives off of achievement and like hitting the

623
00:27:58,119 --> 00:28:02,280
Speaker 2: next wrong, then for you, maybe that does mean seeking

624
00:28:02,320 --> 00:28:06,760
Speaker 2: after some additional milestones even within that career. But if

625
00:28:06,760 --> 00:28:08,679
Speaker 2: that's not the case, I think one other sort of

626
00:28:08,720 --> 00:28:10,359
Speaker 2: way that you can have your cake and eat it

627
00:28:10,440 --> 00:28:13,159
Speaker 2: do is just with a shift in mindset, because a

628
00:28:13,200 --> 00:28:16,920
Speaker 2: lot of times I think individuals have like they aren't

629
00:28:16,960 --> 00:28:19,520
Speaker 2: able to connect what it is that they do with

630
00:28:19,720 --> 00:28:22,680
Speaker 2: the greater good. Essentially, right. And so if you're able

631
00:28:22,680 --> 00:28:25,159
Speaker 2: to connect the dots between the specific job that you

632
00:28:25,280 --> 00:28:28,040
Speaker 2: do and see how that's making the world a better place,

633
00:28:28,560 --> 00:28:30,640
Speaker 2: or just at the very least, if how you're able

634
00:28:30,680 --> 00:28:33,720
Speaker 2: to make the life of somebody better, I think that

635
00:28:33,720 --> 00:28:35,600
Speaker 2: that could bring a whole lot of fulfillment. It's not

636
00:28:35,640 --> 00:28:38,200
Speaker 2: that you're even changing anything about your job except for

637
00:28:38,240 --> 00:28:40,240
Speaker 2: the way that you're thinking about it. You're just connecting

638
00:28:40,280 --> 00:28:43,760
Speaker 2: those dots as opposed to siloing yourself within your department

639
00:28:44,000 --> 00:28:45,880
Speaker 2: or whatever it is that you do. I think that

640
00:28:46,240 --> 00:28:49,200
Speaker 2: could also lead to you discovering a whole lot more

641
00:28:49,240 --> 00:28:51,760
Speaker 2: satisfaction within your job that you already have. That pays

642
00:28:51,760 --> 00:28:52,120
Speaker 2: so well.

643
00:28:52,240 --> 00:28:55,000
Speaker 1: Sure, and as always remembering that there are so many

644
00:28:55,000 --> 00:28:57,680
Speaker 1: other ways in this life to give fulfillment outside of your.

645
00:28:57,640 --> 00:28:58,120
Speaker 2: Nine to five.

646
00:28:58,480 --> 00:29:01,920
Speaker 1: And also true, our society has done an amazing job

647
00:29:01,960 --> 00:29:05,040
Speaker 1: at selling us kind of this recipe to a happy life,

648
00:29:05,080 --> 00:29:08,760
Speaker 1: which includes having some sort of higher calling associated with

649
00:29:08,800 --> 00:29:11,000
Speaker 1: your work, and that is not again, that's not a

650
00:29:11,000 --> 00:29:12,680
Speaker 1: bad thing. That's not something we want to poo poo

651
00:29:13,080 --> 00:29:16,480
Speaker 1: or like talk smack about. But it's also true that

652
00:29:16,560 --> 00:29:18,800
Speaker 1: you can have an amazing life and go to a

653
00:29:18,880 --> 00:29:22,320
Speaker 1: job every day that you're proficient at, that you're good at,

654
00:29:22,480 --> 00:29:25,200
Speaker 1: that pays the bills, and have the best life ever

655
00:29:25,480 --> 00:29:28,040
Speaker 1: without absolutely loving your job to the core of your being.

656
00:29:28,120 --> 00:29:30,240
Speaker 2: Absolutely all right, let's get to our next question, and

657
00:29:30,440 --> 00:29:34,440
Speaker 2: this is that one about that TikTok mortgage hack hy

658
00:29:34,520 --> 00:29:34,840
Speaker 2: droll In.

659
00:29:34,920 --> 00:29:35,120
Speaker 4: Matt.

660
00:29:35,160 --> 00:29:38,480
Speaker 5: My name is Jacob and I'm from Mesa, Arizona. I

661
00:29:38,520 --> 00:29:40,880
Speaker 5: recently saw a video that explained if you had a

662
00:29:41,000 --> 00:29:44,080
Speaker 5: variable interest mortgage rate, you could pay one dollar a

663
00:29:44,160 --> 00:29:47,720
Speaker 5: day to reset the compounding interests, which in turn paid

664
00:29:47,800 --> 00:29:51,080
Speaker 5: off your mortgage faster. I try to find more info

665
00:29:51,120 --> 00:29:53,959
Speaker 5: on this, but didn't find much. Is this something that

666
00:29:54,000 --> 00:29:57,640
Speaker 5: you have heard about or done in your personal life. Secondly,

667
00:29:57,960 --> 00:30:00,480
Speaker 5: if this is the case for someone who has a

668
00:30:00,480 --> 00:30:03,320
Speaker 5: good fixed mortgage rate, would move into a variable rate

669
00:30:03,360 --> 00:30:04,040
Speaker 5: be beneficial?

670
00:30:04,400 --> 00:30:04,760
Speaker 2: Thank you?

671
00:30:05,320 --> 00:30:06,680
Speaker 1: All right, man, I think we need to we need

672
00:30:06,680 --> 00:30:09,680
Speaker 1: to slow Jacob's role here real quick and not everything

673
00:30:09,680 --> 00:30:13,800
Speaker 1: you see on TikTok is credible or is financial advice

674
00:30:13,840 --> 00:30:14,440
Speaker 1: you should trust.

675
00:30:15,080 --> 00:30:17,160
Speaker 2: I think there is some decent advice right Like we

676
00:30:17,240 --> 00:30:20,360
Speaker 2: know some creators or publishers on TikTok on Instagram. I

677
00:30:20,440 --> 00:30:23,719
Speaker 2: hate saying influencers, but there are there is There can

678
00:30:23,840 --> 00:30:26,400
Speaker 2: be some some great information out there, sure, like you said, yeah,

679
00:30:26,440 --> 00:30:28,920
Speaker 2: not everything, yes, no, no, no, there's a lot of good stuff,

680
00:30:28,960 --> 00:30:31,640
Speaker 2: but there's also probably just as much, if not more,

681
00:30:31,920 --> 00:30:35,520
Speaker 2: crap out there on the socials. And and so, no,

682
00:30:35,600 --> 00:30:37,120
Speaker 2: I had not ever heard of this strategy. I don't

683
00:30:37,120 --> 00:30:38,800
Speaker 2: know if you've never heard of it, Matt. This seems

684
00:30:38,800 --> 00:30:41,680
Speaker 2: like something that is a recent occurrence, and it really

685
00:30:41,760 --> 00:30:44,280
Speaker 2: is just mostly a TikTok trend. But we looked it

686
00:30:44,360 --> 00:30:46,680
Speaker 2: up and of course it was Yeah, stem from from

687
00:30:46,760 --> 00:30:51,520
Speaker 2: TikTok at, where everything good, holy and true comes from. Right, Okay,

688
00:30:51,680 --> 00:30:54,400
Speaker 2: not quite, but really like it doesn't. It just doesn't

689
00:30:54,440 --> 00:30:56,000
Speaker 2: hold up to scrutiny And it doesn't really make much

690
00:30:56,000 --> 00:30:59,080
Speaker 2: sense on its face either, because if only recurring daily

691
00:30:59,120 --> 00:31:02,720
Speaker 2: one dollar payments tort your mortgage could stop interest from accruing,

692
00:31:03,040 --> 00:31:05,120
Speaker 2: this would be like a game genie sort of move right,

693
00:31:05,160 --> 00:31:06,240
Speaker 2: three hundred and sixty.

694
00:31:05,960 --> 00:31:08,400
Speaker 1: Five bucks right here, ready to deploy, baby, and all

695
00:31:08,440 --> 00:31:10,560
Speaker 1: the big banks would be shaking in their boots. They'd

696
00:31:10,560 --> 00:31:13,040
Speaker 1: be like, oh my goodness, how do these just brilliant

697
00:31:13,080 --> 00:31:17,840
Speaker 1: individuals finally figure out the dan you talk? Yeah, it's

698
00:31:17,920 --> 00:31:19,720
Speaker 1: like that what is in Star Wars when there's that

699
00:31:20,040 --> 00:31:22,440
Speaker 1: one hole that they got to shoot the lasers through,

700
00:31:22,680 --> 00:31:24,600
Speaker 1: and this is the bank's achilles heel that they just

701
00:31:24,640 --> 00:31:26,760
Speaker 1: haven't protected, right, I mean, that's what it would be like,

702
00:31:26,800 --> 00:31:29,440
Speaker 1: but that is just it's not the case. Right. The

703
00:31:29,640 --> 00:31:33,120
Speaker 1: theory is that banks don't accrue any interest on days

704
00:31:33,120 --> 00:31:35,560
Speaker 1: that you make a payments, which means a dollar a

705
00:31:35,640 --> 00:31:38,320
Speaker 1: day for three hundred sixty five days, like boom, guess what,

706
00:31:38,400 --> 00:31:42,520
Speaker 1: you just stopped any interest from gathering. The snowball just

707
00:31:42,920 --> 00:31:45,719
Speaker 1: ceases to continue, and that would allow you to reduce

708
00:31:46,160 --> 00:31:48,760
Speaker 1: like a twenty year mortgage down to like five years,

709
00:31:49,680 --> 00:31:52,920
Speaker 1: which would be incredible. But no, it's just not reality

710
00:31:52,920 --> 00:31:55,480
Speaker 1: because in reality, the only way to reduce the amount

711
00:31:55,640 --> 00:31:58,080
Speaker 1: of interest you pay on your loan is to pay

712
00:31:58,160 --> 00:32:02,760
Speaker 1: that balance off more quickly. Dollar extra per day isn't

713
00:32:03,000 --> 00:32:05,600
Speaker 1: doing nothing, but he's doing close to nothing. Yeah, like

714
00:32:06,120 --> 00:32:08,960
Speaker 1: paying a dollar extra each day. Lessons you're the length

715
00:32:08,960 --> 00:32:12,200
Speaker 1: of your loan by potentially months definitely not years, so

716
00:32:12,400 --> 00:32:16,040
Speaker 1: mere months, not fifteen years. Sure, yeah, you're thirty year mortgage.

717
00:32:16,080 --> 00:32:17,600
Speaker 1: You might pay it off four months sooner, but you're

718
00:32:17,640 --> 00:32:19,240
Speaker 1: not gonna pay it off fifteen years sooner.

719
00:32:19,400 --> 00:32:21,960
Speaker 2: Yeah, there's no hack to avoid paying that interest on

720
00:32:22,000 --> 00:32:25,480
Speaker 2: your mortgage. This random TikTok person didn't. He didn't crack

721
00:32:25,520 --> 00:32:27,360
Speaker 2: some code. You may have gone.

722
00:32:27,200 --> 00:32:29,320
Speaker 1: Viral, but again his advice is crap.

723
00:32:29,680 --> 00:32:32,400
Speaker 2: And so the only hack to actually pay less interest

724
00:32:32,560 --> 00:32:36,640
Speaker 2: is to just shove large amounts of extra cash towards

725
00:32:36,720 --> 00:32:39,720
Speaker 2: that mortgage. So, for instance, for example, instead of paying

726
00:32:39,760 --> 00:32:42,640
Speaker 2: your mortgage monthly, where you to instead just make half

727
00:32:42,720 --> 00:32:45,840
Speaker 2: of a month's payment every two weeks instead. It's oftentimes

728
00:32:45,840 --> 00:32:48,720
Speaker 2: called like the bi weekly approach or something like that.

729
00:32:49,040 --> 00:32:50,479
Speaker 2: But if you were to do that, you'll pay off

730
00:32:50,480 --> 00:32:54,520
Speaker 2: your mortgage years sooner. It truly will have a big impact.

731
00:32:55,160 --> 00:32:57,880
Speaker 2: But that being said, depending on your interest rate, paying

732
00:32:57,920 --> 00:33:00,800
Speaker 2: it off more quickly it likely is in your best

733
00:33:00,800 --> 00:33:03,920
Speaker 2: overall financial interest. And so even if this was something

734
00:33:03,960 --> 00:33:06,760
Speaker 2: that you could do, just because you could doesn't necessarily

735
00:33:06,840 --> 00:33:07,600
Speaker 2: mean you should.

736
00:33:07,680 --> 00:33:11,080
Speaker 1: Yeah, So basically, if you're paying your mortgage every two

737
00:33:11,080 --> 00:33:13,360
Speaker 1: weeks instead of once a month, you end up making

738
00:33:13,400 --> 00:33:15,840
Speaker 1: one extra full payment a year, which that's it's that

739
00:33:15,920 --> 00:33:18,600
Speaker 1: psychological trick that allows you to then pay that mortgage

740
00:33:18,640 --> 00:33:22,320
Speaker 1: sound faster, But that psychological trick involves meaningful extra amounts

741
00:33:22,360 --> 00:33:25,000
Speaker 1: of money going to pay off the principal balance that

742
00:33:25,040 --> 00:33:25,920
Speaker 1: you're reducing the amount of.

743
00:33:25,920 --> 00:33:29,959
Speaker 2: Interest fuel payments. Yeah, not three hundred some dollars, right, Like,

744
00:33:30,000 --> 00:33:32,120
Speaker 2: this is a real amount of cash, right.

745
00:33:32,120 --> 00:33:34,480
Speaker 1: Yes, So it's it's important to note that. And like

746
00:33:34,480 --> 00:33:36,520
Speaker 1: you said, if it's a three percent mortgage, you might

747
00:33:36,560 --> 00:33:38,640
Speaker 1: be shooting yourself in the foot by paying you know,

748
00:33:38,720 --> 00:33:40,880
Speaker 1: off your mortgage more quickly when you could earn more

749
00:33:41,280 --> 00:33:42,840
Speaker 1: just in a basic savings that.

750
00:33:42,920 --> 00:33:45,640
Speaker 2: Oh my gosh. Yeah, and this makes me think too,

751
00:33:45,800 --> 00:33:47,520
Speaker 2: changes the calculus the world that we're living in.

752
00:33:47,760 --> 00:33:49,880
Speaker 1: Yeah, Jacobs saying, well, should I refinance out of this

753
00:33:49,920 --> 00:33:52,880
Speaker 1: mortgage that I've got into one with a variable rate? No,

754
00:33:52,880 --> 00:33:53,720
Speaker 1: no way, I mean.

755
00:33:53,720 --> 00:33:55,000
Speaker 2: Another Star Wars meme.

756
00:33:56,520 --> 00:34:00,360
Speaker 1: Yes, exactly. Again, you're you're you're you're doing yourself a

757
00:34:00,360 --> 00:34:03,560
Speaker 1: disservice if you do this. It costs money thirty finance.

758
00:34:03,560 --> 00:34:06,160
Speaker 1: And also you're going from what's in all likelihood an

759
00:34:06,200 --> 00:34:09,239
Speaker 1: incredibly low fixed rate to something that is higher to

760
00:34:09,280 --> 00:34:12,800
Speaker 1: begin with, and in all likelihood will remain higher for years,

761
00:34:12,840 --> 00:34:15,279
Speaker 1: if not the whole rest of the life of your balance. Right,

762
00:34:15,560 --> 00:34:18,080
Speaker 1: And so yeah, chances are you're giving up something stellar

763
00:34:18,200 --> 00:34:22,359
Speaker 1: in favor of the unknown, and yeah, so, and it's

764
00:34:22,400 --> 00:34:23,960
Speaker 1: not just the unknown, it's like I said that, the

765
00:34:24,400 --> 00:34:27,080
Speaker 1: reality that the starting rate is so much worse than

766
00:34:27,120 --> 00:34:29,719
Speaker 1: what you've got right now, and it's gonna raise your

767
00:34:29,719 --> 00:34:32,400
Speaker 1: payments in a big way, all in hopes that this

768
00:34:32,440 --> 00:34:35,560
Speaker 1: one dollar extra a day just stemy's the interest building,

769
00:34:35,560 --> 00:34:39,000
Speaker 1: which isn't the case. So it's definitely best to keep

770
00:34:39,040 --> 00:34:41,560
Speaker 1: what you've got. I would not look into refinancing. Not

771
00:34:41,680 --> 00:34:44,560
Speaker 1: many people are refinancing these days because rates are at

772
00:34:44,560 --> 00:34:45,759
Speaker 1: the highest they've been in some time.

773
00:34:46,080 --> 00:34:49,520
Speaker 2: So yeah, well, and it's also not because we're against

774
00:34:49,719 --> 00:34:52,880
Speaker 2: arms adjustable rate mortgages. There's a lot of die hard,

775
00:34:53,040 --> 00:34:56,640
Speaker 2: well fundamentalist type of personal finance folks out there, and

776
00:34:56,680 --> 00:35:00,000
Speaker 2: they're like, you gotta go like thirty or fifty ideally

777
00:35:00,120 --> 00:35:03,000
Speaker 2: fifteen year fixed, but you know, thirty year at the

778
00:35:03,160 --> 00:35:06,560
Speaker 2: very least thirty year fixed. But we've kind of come

779
00:35:06,600 --> 00:35:09,560
Speaker 2: around on that. Sometimes we think that an ARM can

780
00:35:09,560 --> 00:35:12,480
Speaker 2: make a lot of sense because based on behavior, the

781
00:35:12,520 --> 00:35:15,880
Speaker 2: fact is we don't stay in homes typically for thirty years,

782
00:35:15,960 --> 00:35:18,080
Speaker 2: especially if this is a first time If you're a

783
00:35:18,120 --> 00:35:21,400
Speaker 2: first time home buyer and you've got big goals, and

784
00:35:21,480 --> 00:35:23,239
Speaker 2: you know, going back to the Leah's question, going back

785
00:35:23,239 --> 00:35:25,200
Speaker 2: to personal goals that you might have if you've got

786
00:35:25,200 --> 00:35:27,960
Speaker 2: a family and you're looking to grow that family, Yeah,

787
00:35:27,960 --> 00:35:30,040
Speaker 2: the chances on you're not going to continue to stay

788
00:35:30,080 --> 00:35:32,120
Speaker 2: in that little two to one. You're probably gonna move on,

789
00:35:32,280 --> 00:35:32,879
Speaker 2: yeah for sure.

790
00:35:32,880 --> 00:35:34,759
Speaker 1: And you might have been paying more every single month

791
00:35:34,840 --> 00:35:36,640
Speaker 1: for a lot of years what you could have opted

792
00:35:36,640 --> 00:35:38,480
Speaker 1: for that arm instead. And there can be a big

793
00:35:38,520 --> 00:35:41,520
Speaker 1: discrepancy between the rates you might see on something like

794
00:35:41,520 --> 00:35:43,680
Speaker 1: a ten to one arm versus what you might see

795
00:35:43,680 --> 00:35:44,759
Speaker 1: for a thirty year fixed And.

796
00:35:44,719 --> 00:35:46,640
Speaker 2: So you've you realize that yourself.

797
00:35:46,760 --> 00:35:48,840
Speaker 1: Yeah, when I was shopping plays this year last for

798
00:35:48,960 --> 00:35:52,080
Speaker 1: the house we're currently in, last summer, the adjustable rate

799
00:35:52,120 --> 00:35:54,840
Speaker 1: mortgages were a full point lower, and so it just

800
00:35:54,880 --> 00:35:57,080
Speaker 1: made sense. I was like, in ten years time, I'm

801
00:35:57,080 --> 00:35:59,520
Speaker 1: gonna have so many different options at my disposal, whether

802
00:35:59,560 --> 00:36:01,960
Speaker 1: it means hopefully saving up up enough where I can

803
00:36:01,960 --> 00:36:03,920
Speaker 1: pay off the full balance if I want, there's just

804
00:36:04,000 --> 00:36:07,120
Speaker 1: so so many different ways I can skin this cat.

805
00:36:07,200 --> 00:36:09,759
Speaker 1: And so taking the bird in the hand, which was

806
00:36:09,760 --> 00:36:12,160
Speaker 1: the one point lower, knowing that I had that locked

807
00:36:12,160 --> 00:36:15,239
Speaker 1: for ten years, that was the best financial move for us,

808
00:36:15,280 --> 00:36:17,640
Speaker 1: and so I used to be kind of anti ARM,

809
00:36:18,000 --> 00:36:19,839
Speaker 1: but I no longer am.

810
00:36:20,680 --> 00:36:22,239
Speaker 2: We talked long and hard about it, and I think

811
00:36:22,239 --> 00:36:24,200
Speaker 2: that's that's also when I was like, oh, man, I

812
00:36:24,239 --> 00:36:26,520
Speaker 2: think I should have gotten an ARM too, because we,

813
00:36:26,760 --> 00:36:29,520
Speaker 2: I mean the house that we bought, we were specifically thinking, oh, yeah,

814
00:36:29,520 --> 00:36:31,680
Speaker 2: we'll be here for a few years. Well, then why

815
00:36:31,719 --> 00:36:33,960
Speaker 2: the heck would I have gotten a thirty year mortgage

816
00:36:34,120 --> 00:36:37,839
Speaker 2: when I could have potentially gotten something significantly lower. But

817
00:36:37,920 --> 00:36:40,120
Speaker 2: then the other side of the argument is that, well

818
00:36:40,200 --> 00:36:43,560
Speaker 2: you never know. And the joke is between Kate and

819
00:36:43,560 --> 00:36:46,000
Speaker 2: I is like, well, yeah, watch us be stuck in

820
00:36:46,000 --> 00:36:47,799
Speaker 2: this house for the next twenty years. Like the one

821
00:36:47,800 --> 00:36:49,080
Speaker 2: house that we think that is going to be a

822
00:36:49,120 --> 00:36:50,840
Speaker 2: temporary home for us, we're going to be in the

823
00:36:50,840 --> 00:36:53,160
Speaker 2: longest that we've ever been, right Whereas the last one

824
00:36:53,200 --> 00:36:54,360
Speaker 2: you were in, you were like, we're gonna be here

825
00:36:54,400 --> 00:36:56,680
Speaker 2: forever anymore, and we were not. That's the lesson I've

826
00:36:56,719 --> 00:36:59,000
Speaker 2: learned is that it's things are not as certain as

827
00:36:59,040 --> 00:36:59,520
Speaker 2: you think they are.

828
00:36:59,560 --> 00:37:01,720
Speaker 1: Yeah, as long as you know what you're getting into

829
00:37:01,920 --> 00:37:04,880
Speaker 1: and you're getting a significant rate reduction, I think an

830
00:37:04,960 --> 00:37:06,719
Speaker 1: ARM can make sense for a lot of people. But

831
00:37:06,719 --> 00:37:10,560
Speaker 1: but for Jacob exchanging what he's got, which is in

832
00:37:10,600 --> 00:37:12,560
Speaker 1: all likely he didn't say the exact rate, but which

833
00:37:12,600 --> 00:37:15,160
Speaker 1: is in all likely at a ridiculously low rate, trying

834
00:37:15,200 --> 00:37:17,560
Speaker 1: to exchange it for an arm doesn't make any sense.

835
00:37:17,600 --> 00:37:20,440
Speaker 1: And following, I would unfollow this person on TikTok right

836
00:37:20,440 --> 00:37:23,319
Speaker 1: away because they're not steering you right, and they're in

837
00:37:23,360 --> 00:37:25,400
Speaker 1: fact spewing bogus information.

838
00:37:25,560 --> 00:37:26,200
Speaker 2: So I Matt.

839
00:37:26,239 --> 00:37:29,640
Speaker 1: We've got more questions to get to, including one from

840
00:37:29,680 --> 00:37:33,040
Speaker 1: a listener about a life insurance policy that costs fifteen

841
00:37:33,080 --> 00:37:35,839
Speaker 1: times what our favorite kind of life insurance costs. But

842
00:37:35,920 --> 00:37:37,680
Speaker 1: is it worth that increased cost. We'll get to that

843
00:37:37,719 --> 00:37:38,719
Speaker 1: and more right after this.

844
00:37:48,360 --> 00:37:50,080
Speaker 2: All right, buddy, we are back for the break, and

845
00:37:50,160 --> 00:37:52,879
Speaker 2: it is now time to hear from a mother who

846
00:37:53,080 --> 00:37:55,040
Speaker 2: wants to make sure that she is setting her son

847
00:37:55,400 --> 00:37:58,640
Speaker 2: on the path towards some financial success.

848
00:37:59,080 --> 00:38:02,879
Speaker 6: Hey, this is shann and Bearden from Covington, Louisiana. I've

849
00:38:02,920 --> 00:38:06,279
Speaker 6: been a listener of your show and a big fan.

850
00:38:07,040 --> 00:38:09,520
Speaker 6: I have a son that's turning eighteen and going off

851
00:38:09,520 --> 00:38:13,279
Speaker 6: to college in Alabama. Trying to make sure we are

852
00:38:13,320 --> 00:38:16,879
Speaker 6: thinking of everything pros and cons and making the right

853
00:38:16,960 --> 00:38:22,160
Speaker 6: choices to give him his first credit card, whether or

854
00:38:22,200 --> 00:38:25,480
Speaker 6: not we should put his car in his name, his

855
00:38:25,600 --> 00:38:30,520
Speaker 6: insurance and his name bank accounts, all that fun stuff.

856
00:38:31,040 --> 00:38:35,080
Speaker 6: Can you please help me think of everything as he

857
00:38:35,120 --> 00:38:40,359
Speaker 6: turns eighteen, including filing taxes separately so that he can

858
00:38:40,400 --> 00:38:42,919
Speaker 6: get what was withheld from his Chick fil A check

859
00:38:43,040 --> 00:38:46,960
Speaker 6: back versus keeping him as a dependent on mine.

860
00:38:47,640 --> 00:38:50,440
Speaker 1: All right, Shannon, congrats, congrats to your son going off

861
00:38:50,440 --> 00:38:53,520
Speaker 1: to college, and yeah, a big milestone. We just recently

862
00:38:53,560 --> 00:38:55,879
Speaker 1: released an episode. Oh that's right for graduate. That could

863
00:38:55,880 --> 00:38:58,800
Speaker 1: be an excellent episode. Yes, we're stressing to any of

864
00:38:58,880 --> 00:39:01,840
Speaker 1: the questions she asked here, but hopefully it's a bigger,

865
00:39:02,120 --> 00:39:04,319
Speaker 1: more philosophical approach to money that will help him out.

866
00:39:04,360 --> 00:39:08,080
Speaker 1: So exactly, if you haven't heard that, or if he

867
00:39:08,120 --> 00:39:10,399
Speaker 1: hasn't heard that, we would suggest maybe that's the one

868
00:39:10,440 --> 00:39:12,120
Speaker 1: had a money episode you can get him to listen to.

869
00:39:12,480 --> 00:39:15,680
Speaker 1: But yeah, let's talk about your specific questions and we'll

870
00:39:15,719 --> 00:39:17,439
Speaker 1: kind of go one by one, Like, first, he should

871
00:39:17,480 --> 00:39:19,840
Speaker 1: probably get a credit card sooner rather than later, and

872
00:39:19,880 --> 00:39:22,319
Speaker 1: that's for a couple of reasons. Really, you know, he'll

873
00:39:22,360 --> 00:39:24,000
Speaker 1: be able to get his own credit card at the

874
00:39:24,040 --> 00:39:26,480
Speaker 1: age of eighteen, if he has proof of income, and

875
00:39:26,560 --> 00:39:28,719
Speaker 1: it sounds like he does because of that Chick fil

876
00:39:28,719 --> 00:39:30,960
Speaker 1: A job that you mentioned, and so having this credit

877
00:39:31,040 --> 00:39:35,120
Speaker 1: card while you're still more actively involved in his finances,

878
00:39:35,160 --> 00:39:38,600
Speaker 1: while he's still technically living under your roof, even though

879
00:39:38,800 --> 00:39:41,319
Speaker 1: even though he's going to school a state over this

880
00:39:41,400 --> 00:39:44,800
Speaker 1: allows him to potentially make mistakes on a smaller scale,

881
00:39:45,080 --> 00:39:47,000
Speaker 1: and it allows him to start building a strong credit

882
00:39:47,080 --> 00:39:49,440
Speaker 1: score from an early age. And I say smaller scale

883
00:39:49,480 --> 00:39:53,719
Speaker 1: because like you have more oversight really over him and

884
00:39:53,760 --> 00:39:55,399
Speaker 1: what's going on with his life. And I'm sure he's

885
00:39:55,960 --> 00:39:58,280
Speaker 1: talking to you more about his money than he will.

886
00:39:59,160 --> 00:40:01,120
Speaker 1: I mean, granted he's a teenagers so probably not a lot,

887
00:40:01,160 --> 00:40:03,000
Speaker 1: but more than he will when he's twenty five, right

888
00:40:03,480 --> 00:40:04,960
Speaker 1: or twenty four, when he's like out in the real

889
00:40:05,000 --> 00:40:07,439
Speaker 1: world hitting his first job. Stuff like that. You still

890
00:40:07,440 --> 00:40:09,239
Speaker 1: have the ability to kind of talk about these things,

891
00:40:09,320 --> 00:40:11,960
Speaker 1: inquire and have an influence. And so I think now

892
00:40:12,040 --> 00:40:14,439
Speaker 1: is a great time for him to get a credit card,

893
00:40:14,680 --> 00:40:17,239
Speaker 1: not wait too long, not make those mistakes when he's

894
00:40:17,320 --> 00:40:21,240
Speaker 1: kind of flown the coop completely, and again that strong

895
00:40:21,239 --> 00:40:24,040
Speaker 1: credit score. That's another perk of him beginning to use

896
00:40:24,080 --> 00:40:26,920
Speaker 1: a credit card. There are other smaller perks, right, like

897
00:40:27,120 --> 00:40:31,480
Speaker 1: cash back or earning points for free travel stuff like that.

898
00:40:30,920 --> 00:40:33,640
Speaker 1: That's all will and good, but more than anything, we

899
00:40:33,680 --> 00:40:37,280
Speaker 1: want him to learn how to handle credit wisely now

900
00:40:37,360 --> 00:40:39,800
Speaker 1: and make some of those mistakes while while you're still

901
00:40:39,960 --> 00:40:41,280
Speaker 1: more involved.

902
00:40:41,440 --> 00:40:43,520
Speaker 2: Yeah, and so okay, So for all the parents out

903
00:40:43,560 --> 00:40:46,359
Speaker 2: there who don't have a son or a daughter who

904
00:40:46,400 --> 00:40:49,759
Speaker 2: is leaving the home, like, so one quick tip, you

905
00:40:49,840 --> 00:40:52,920
Speaker 2: can add a child to your credit card and not

906
00:40:52,920 --> 00:40:55,279
Speaker 2: give them the credit card, so they're able to effectively

907
00:40:55,320 --> 00:40:57,920
Speaker 2: build up that credit score without technically having to do

908
00:40:58,000 --> 00:41:01,120
Speaker 2: any of the work. So authorized user staff. Yeah, that's

909
00:41:01,160 --> 00:41:03,440
Speaker 2: kind of like a little hack. But ultimately that's not

910
00:41:03,520 --> 00:41:06,880
Speaker 2: the reason that we want you involved with your son's finances.

911
00:41:06,960 --> 00:41:09,280
Speaker 2: Ultimately is because he needs to learn how to handle

912
00:41:09,280 --> 00:41:10,920
Speaker 2: his finances on his own, because he's about to go

913
00:41:10,920 --> 00:41:14,000
Speaker 2: off into the real world, sure and slowly but surely,

914
00:41:14,320 --> 00:41:17,120
Speaker 2: he is going to be making his own decisions. He's

915
00:41:17,160 --> 00:41:18,719
Speaker 2: going to be getting I mean, he's got his own job,

916
00:41:18,719 --> 00:41:22,239
Speaker 2: which is awesome, his Chick fil a job, But beyond that,

917
00:41:22,280 --> 00:41:25,520
Speaker 2: he's going to start making larger and larger financial decisions

918
00:41:25,560 --> 00:41:28,280
Speaker 2: on his own and your ability to speak into his life.

919
00:41:28,400 --> 00:41:30,839
Speaker 2: Now it's going to go a lot further than you

920
00:41:30,920 --> 00:41:34,360
Speaker 2: providing an opinion later down the road, I think. But again,

921
00:41:34,400 --> 00:41:36,440
Speaker 2: when it comes to credit cards, specifically, make sure that

922
00:41:36,480 --> 00:41:39,120
Speaker 2: he knows the downsides to using credit cards as well.

923
00:41:39,480 --> 00:41:42,319
Speaker 2: It's not just points and cash back and boosting your

924
00:41:42,320 --> 00:41:42,920
Speaker 2: credit score.

925
00:41:43,040 --> 00:41:44,600
Speaker 1: That is what the commercials want you to think. That

926
00:41:44,680 --> 00:41:46,640
Speaker 1: it's only upside, it's all.

927
00:41:46,360 --> 00:41:49,080
Speaker 2: It's yeah, they only highlight the glamorous, it's all fun trips.

928
00:41:49,520 --> 00:41:50,719
Speaker 1: You Yeah, but that.

929
00:41:50,760 --> 00:41:53,880
Speaker 2: Oftentimes, actually we feel the pain of paying with plastic

930
00:41:54,200 --> 00:41:57,080
Speaker 2: less acutely, it doesn't hurt as much. And then because

931
00:41:57,120 --> 00:41:59,240
Speaker 2: of that, yeah, he might be tempted to maybe spend

932
00:41:59,239 --> 00:42:01,080
Speaker 2: more than he actually he has on hand, then that

933
00:42:01,160 --> 00:42:03,520
Speaker 2: he's actually able to pay off and of course that's

934
00:42:03,560 --> 00:42:06,839
Speaker 2: the cardinal sin of racking up interest if he doesn't

935
00:42:06,840 --> 00:42:09,719
Speaker 2: actually pay that card off in full every single month.

936
00:42:09,760 --> 00:42:12,000
Speaker 2: That's one thing he needs to know that he has

937
00:42:12,080 --> 00:42:14,799
Speaker 2: to do. But no matter what, as he starts going

938
00:42:14,840 --> 00:42:17,680
Speaker 2: down the route of using plastic, just helping him to consider,

939
00:42:17,840 --> 00:42:19,720
Speaker 2: you know, what it looks like to manage that credit

940
00:42:19,760 --> 00:42:22,840
Speaker 2: card ahead of time. That is a critical role that

941
00:42:22,920 --> 00:42:26,400
Speaker 2: you play in this process. Credit cards in particular, they

942
00:42:26,400 --> 00:42:29,319
Speaker 2: can be this dangerous financial tool that a lot of

943
00:42:29,360 --> 00:42:32,359
Speaker 2: young folks in particular, that they find themselves in possession of.

944
00:42:32,680 --> 00:42:34,400
Speaker 2: And so you want to make sure that he's using

945
00:42:34,440 --> 00:42:36,520
Speaker 2: that tool the right way, just like you wouldn't hand

946
00:42:37,320 --> 00:42:40,320
Speaker 2: you know, a three year old crazy sharp chef's knife

947
00:42:40,320 --> 00:42:42,560
Speaker 2: and ask him to start chopping the carrots or something

948
00:42:42,600 --> 00:42:44,480
Speaker 2: like that, unless I don't know, maybe there's some prodigies

949
00:42:44,480 --> 00:42:47,880
Speaker 2: out there, but you want to ease him into it

950
00:42:48,000 --> 00:42:50,360
Speaker 2: rather than you know, like what you don't want to

951
00:42:50,400 --> 00:42:52,200
Speaker 2: do is just be like, here's a credit card and

952
00:42:52,239 --> 00:42:54,800
Speaker 2: then like send him on his way, good luck. Basically,

953
00:42:54,840 --> 00:42:56,040
Speaker 2: we don't want you to just to like throw him

954
00:42:56,080 --> 00:42:58,080
Speaker 2: off into the deep end. Yeah, we want you he

955
00:42:58,120 --> 00:43:00,560
Speaker 2: goes swimming with him into those.

956
00:43:00,400 --> 00:43:02,480
Speaker 1: Waters, clothes on him, you remember, like you did, Yeah,

957
00:43:02,520 --> 00:43:05,319
Speaker 1: back he was you know, three's just just a wee

958
00:43:05,320 --> 00:43:06,000
Speaker 1: will young type.

959
00:43:06,080 --> 00:43:06,319
Speaker 2: Yeah.

960
00:43:06,440 --> 00:43:08,680
Speaker 1: Well and that's thats that. Yeah, that's what you do.

961
00:43:08,800 --> 00:43:10,960
Speaker 1: You're able to do. I think by saying, yeah, you

962
00:43:10,960 --> 00:43:12,640
Speaker 1: should get a credit card, but let's talk about how

963
00:43:12,680 --> 00:43:14,880
Speaker 1: you use it, and so maybe give him some guidance

964
00:43:15,120 --> 00:43:17,319
Speaker 1: and then also ask him when he comes home and

965
00:43:17,360 --> 00:43:20,359
Speaker 1: he wants his laundry done, or something like one, make

966
00:43:20,440 --> 00:43:22,319
Speaker 1: him do his own laundry because he's an adult now.

967
00:43:22,480 --> 00:43:24,759
Speaker 1: And then two talk about hey, well, okay, talk and

968
00:43:24,760 --> 00:43:26,120
Speaker 1: talk about that credit card. How are you using it?

969
00:43:26,120 --> 00:43:27,560
Speaker 1: How's it going? You're still paying it off on time

970
00:43:27,600 --> 00:43:30,640
Speaker 1: and in full every single month. And and that's a

971
00:43:30,640 --> 00:43:32,359
Speaker 1: good way you can you'll be able to see whether

972
00:43:32,360 --> 00:43:34,120
Speaker 1: he's telling the truth or not pretty quick. You don't

973
00:43:34,120 --> 00:43:36,200
Speaker 1: even have to look at the back end, right, you

974
00:43:36,200 --> 00:43:37,960
Speaker 1: don't have to log in, You'll you'll get all you

975
00:43:37,960 --> 00:43:40,160
Speaker 1: need to know just by asking the questions, and then

976
00:43:40,200 --> 00:43:43,200
Speaker 1: you can continue that conversation. And but yes, it's definitely

977
00:43:43,239 --> 00:43:45,120
Speaker 1: time for him to get his own bank account too.

978
00:43:45,400 --> 00:43:48,000
Speaker 1: Like his paychecks if he continues working, should go into

979
00:43:48,000 --> 00:43:50,600
Speaker 1: that account. That account really should be the hub for

980
00:43:50,640 --> 00:43:54,200
Speaker 1: his finances moving forward. But when you go off on

981
00:43:54,440 --> 00:43:56,839
Speaker 1: your own and you start making your own purchases, it's

982
00:43:56,840 --> 00:43:59,319
Speaker 1: important to keep track of incoming and outgoing funds, and

983
00:43:59,360 --> 00:44:03,000
Speaker 1: so opening a free mint account or we mentioned whynap

984
00:44:03,120 --> 00:44:05,200
Speaker 1: earlier one of those that could help him manage this

985
00:44:05,239 --> 00:44:08,080
Speaker 1: new fround freedom as well. What wineapp users who are

986
00:44:08,080 --> 00:44:10,520
Speaker 1: students get a discount rate too, by the way Matt. Yeah,

987
00:44:11,480 --> 00:44:14,640
Speaker 1: but having one credit card and a bank account, preferably

988
00:44:14,680 --> 00:44:17,400
Speaker 1: with one of our favorite online banks. It's his perfect

989
00:44:17,400 --> 00:44:21,000
Speaker 1: initiation into handling his own funds as as he's going

990
00:44:21,000 --> 00:44:23,880
Speaker 1: out on his own. Really, I think it's time for

991
00:44:24,000 --> 00:44:27,520
Speaker 1: him to basically have all of his own accounts and

992
00:44:27,560 --> 00:44:30,160
Speaker 1: instead of helping him manage them, now you're just kind

993
00:44:30,200 --> 00:44:32,400
Speaker 1: of acting as a guide from afar.

994
00:44:32,719 --> 00:44:34,680
Speaker 2: Yeah, and hopefully I mean for all the other parents

995
00:44:34,719 --> 00:44:37,000
Speaker 2: out there, this is a process that they can start

996
00:44:37,360 --> 00:44:40,200
Speaker 2: before the age of eighteen. Like ideally this is something

997
00:44:40,239 --> 00:44:43,319
Speaker 2: that you're able to walk your kids through over time

998
00:44:43,360 --> 00:44:46,480
Speaker 2: where you've got more time to kind of, you know,

999
00:44:46,560 --> 00:44:50,440
Speaker 2: teach them and partner with them as opposed to Shannon.

1000
00:44:50,520 --> 00:44:52,720
Speaker 2: For you, it might feel more like a crash course.

1001
00:44:52,800 --> 00:44:55,960
Speaker 2: But that being said, I think he is capable. I mean,

1002
00:44:55,960 --> 00:44:57,600
Speaker 2: he's got a job, right, so it sounds like he's

1003
00:44:57,640 --> 00:45:00,120
Speaker 2: got a good work ethic and hopefully he's maybe has

1004
00:45:00,200 --> 00:45:02,640
Speaker 2: learned more about money. They're at, you know, working at

1005
00:45:02,640 --> 00:45:05,359
Speaker 2: a fast food joint than you realize. And so that's

1006
00:45:05,360 --> 00:45:07,319
Speaker 2: the other part of it as well, Like you might

1007
00:45:07,360 --> 00:45:10,040
Speaker 2: be concerned about what it is that he is stepping

1008
00:45:10,080 --> 00:45:13,000
Speaker 2: out into, but he might be potentially more prepared than

1009
00:45:13,040 --> 00:45:14,680
Speaker 2: you think. But for all the other parents out there,

1010
00:45:14,719 --> 00:45:17,799
Speaker 2: this is a conversation that you ideally would start at

1011
00:45:17,840 --> 00:45:20,759
Speaker 2: a younger age, as you kind of gradually initiate your

1012
00:45:21,080 --> 00:45:23,919
Speaker 2: kids into handling their own finance as well. But Shane,

1013
00:45:24,160 --> 00:45:25,880
Speaker 2: I think you kind of talked to you or you

1014
00:45:25,920 --> 00:45:29,360
Speaker 2: mentioned something about the car or car insurance as well.

1015
00:45:29,520 --> 00:45:32,000
Speaker 2: But chances are that your rates, like what it is

1016
00:45:32,000 --> 00:45:34,879
Speaker 2: that you pay, would go down quite a bit if

1017
00:45:34,920 --> 00:45:37,799
Speaker 2: your son were to get his own insurance policy. But

1018
00:45:38,320 --> 00:45:41,360
Speaker 2: it's also likely that his rates would be incredibly high,

1019
00:45:42,040 --> 00:45:46,080
Speaker 2: making it potentially just cost prohibitive for him. And on

1020
00:45:46,160 --> 00:45:48,279
Speaker 2: top of that, you'll likely be forced to keep him

1021
00:45:48,280 --> 00:45:51,560
Speaker 2: on your insurance if his permanent address is still your

1022
00:45:51,680 --> 00:45:54,759
Speaker 2: home address, which it likely would be if he's you know,

1023
00:45:54,800 --> 00:45:57,600
Speaker 2: off at school staying in the dorms. But one thing

1024
00:45:57,640 --> 00:46:00,680
Speaker 2: that you could do if you wanted him to partake

1025
00:46:00,719 --> 00:46:04,680
Speaker 2: in the pain of that expensive car insurance is you

1026
00:46:04,719 --> 00:46:07,160
Speaker 2: can just have him paying a portion of those higher

1027
00:46:07,200 --> 00:46:10,480
Speaker 2: premiums just directly to you. It's a way for him

1028
00:46:10,480 --> 00:46:12,640
Speaker 2: to kind of feel the pain a little bit and

1029
00:46:12,640 --> 00:46:16,319
Speaker 2: to realize, oh, man, like it's expensive being a kid.

1030
00:46:16,040 --> 00:46:18,560
Speaker 1: That could be his first monthly bill, right, paying mom

1031
00:46:18,640 --> 00:46:20,680
Speaker 1: back for one hundred, one hundred and fifty bucks worth

1032
00:46:20,719 --> 00:46:22,279
Speaker 1: of insurance every single month or something of that. You

1033
00:46:22,280 --> 00:46:23,960
Speaker 1: could say, Hey, listen, if I were to take you off,

1034
00:46:24,160 --> 00:46:26,560
Speaker 1: it would save me twenty two hundred dollars a year.

1035
00:46:26,560 --> 00:46:28,799
Speaker 1: But guess what, I'm only gonna make you pay half

1036
00:46:28,840 --> 00:46:30,600
Speaker 1: of that. So here's the monthly amount you owe me.

1037
00:46:30,840 --> 00:46:32,960
Speaker 1: And that's a really good way to kind of teach him.

1038
00:46:33,040 --> 00:46:34,520
Speaker 1: At the same time, while you're talking about things like

1039
00:46:34,560 --> 00:46:36,520
Speaker 1: credit cards and bank accounts, this is just one more

1040
00:46:36,560 --> 00:46:38,319
Speaker 1: way in which you can say, these are the kind

1041
00:46:38,360 --> 00:46:40,359
Speaker 1: of monthly bills you're gonna get when you're an adult.

1042
00:46:40,360 --> 00:46:42,399
Speaker 1: They're gonna slap you silly, They're gonna they're they're gonna

1043
00:46:42,400 --> 00:46:45,799
Speaker 1: wake you up to the stark, cold realities of real life.

1044
00:46:45,880 --> 00:46:48,880
Speaker 2: So I'm getting used to that. Just the motions of

1045
00:46:48,920 --> 00:46:51,320
Speaker 2: making those payments, even though you're not making a payment

1046
00:46:51,360 --> 00:46:53,799
Speaker 2: to whatever insurance company is. Yeah, just to the bank

1047
00:46:53,840 --> 00:46:56,560
Speaker 2: of mom, insurance company of mom. And by the way,

1048
00:46:56,640 --> 00:47:00,680
Speaker 2: make sure that he's you know, different families prioritize the rides,

1049
00:47:01,040 --> 00:47:03,440
Speaker 2: the cars that they drive to different extents, but make

1050
00:47:03,480 --> 00:47:05,560
Speaker 2: sure that he's driving something maybe a little more affordable,

1051
00:47:05,560 --> 00:47:08,640
Speaker 2: maybe a beat or something that's old that doesn't require

1052
00:47:08,719 --> 00:47:11,359
Speaker 2: you to have full coverage. If you can just get

1053
00:47:11,360 --> 00:47:14,200
Speaker 2: by with liability. What it is that your state requires

1054
00:47:14,239 --> 00:47:15,680
Speaker 2: of you. That's going to that's the way that you're

1055
00:47:15,680 --> 00:47:18,080
Speaker 2: going to be able to keep those insurance premiums at

1056
00:47:18,080 --> 00:47:18,520
Speaker 2: a minimum.

1057
00:47:18,560 --> 00:47:21,600
Speaker 1: Yeah, Well, driving one of those early two thousands Nissans,

1058
00:47:21,760 --> 00:47:23,880
Speaker 1: Hondas or Toyotas or something like that, Like that's going

1059
00:47:23,960 --> 00:47:25,719
Speaker 1: to be the way not only to have just a

1060
00:47:25,800 --> 00:47:28,759
Speaker 1: cheaper car that you don't mind if he messes up

1061
00:47:28,760 --> 00:47:30,759
Speaker 1: a little bit, but also it's going to save you

1062
00:47:30,760 --> 00:47:32,839
Speaker 1: a bunch on insurance too. All right, Matt, we got

1063
00:47:32,880 --> 00:47:35,200
Speaker 1: one more question to get to. This one's about a

1064
00:47:35,239 --> 00:47:37,600
Speaker 1: really expensive form of life insurance. Is it worth the

1065
00:47:37,640 --> 00:47:38,320
Speaker 1: extra expense?

1066
00:47:39,080 --> 00:47:42,480
Speaker 7: Hey there, it's Laura from Atlanta. Love you guys, and

1067
00:47:43,239 --> 00:47:45,200
Speaker 7: I got a bit of a doozy for you. Can

1068
00:47:45,239 --> 00:47:49,720
Speaker 7: you talk to me about iul's indexed universal life insurance plans?

1069
00:47:50,120 --> 00:47:52,520
Speaker 7: What are the positives, what are the negatives? Is this

1070
00:47:52,560 --> 00:47:55,359
Speaker 7: something that you would take advantage of? I'm being told

1071
00:47:55,440 --> 00:47:58,440
Speaker 7: essentially that I can take out a life insurance policy

1072
00:47:59,120 --> 00:48:03,200
Speaker 7: pay over in a b of by premium in order

1073
00:48:03,239 --> 00:48:06,000
Speaker 7: to create a savings account and then borrow from it

1074
00:48:06,120 --> 00:48:09,120
Speaker 7: as a loan when I want to make investments in

1075
00:48:09,920 --> 00:48:14,520
Speaker 7: various projects. How does this work? Is this legitimate? I'd

1076
00:48:14,560 --> 00:48:16,399
Speaker 7: love to know your thoughts and if this is something

1077
00:48:16,440 --> 00:48:17,600
Speaker 7: you take advantage.

1078
00:48:17,200 --> 00:48:20,640
Speaker 2: Of, thanks, all right. It is legit, but it is

1079
00:48:20,680 --> 00:48:23,360
Speaker 2: not something that we take advantage of. And by a legit,

1080
00:48:23,440 --> 00:48:25,040
Speaker 2: I mean it can be done.

1081
00:48:25,160 --> 00:48:26,240
Speaker 1: It's a product that exists.

1082
00:48:26,719 --> 00:48:30,080
Speaker 2: Yeah, this is a real thing. It's not a total scam,

1083
00:48:30,200 --> 00:48:32,560
Speaker 2: but it is not in your own best interest.

1084
00:48:32,640 --> 00:48:36,360
Speaker 1: This doesn't fall into TikTok financial advice. That's completely bogused.

1085
00:48:36,400 --> 00:48:38,319
Speaker 1: And this is a product that some people do buy,

1086
00:48:38,520 --> 00:48:39,640
Speaker 1: but it's one we don't like.

1087
00:48:39,800 --> 00:48:42,160
Speaker 2: It's got a little more truthiness to it, but not

1088
00:48:42,239 --> 00:48:46,960
Speaker 2: it's on more like iul's index Universal life policies. They

1089
00:48:46,960 --> 00:48:49,080
Speaker 2: make me think of car sales folks out there. Who

1090
00:48:49,120 --> 00:48:50,840
Speaker 2: are They're showing you all the different cars they have

1091
00:48:50,880 --> 00:48:52,840
Speaker 2: on the line. They're showing you the sweet pain jobs

1092
00:48:52,880 --> 00:48:55,600
Speaker 2: while they're not letting you have the peak at the engine.

1093
00:48:55,719 --> 00:48:58,120
Speaker 2: They're trying to distract you with all these other things.

1094
00:48:58,280 --> 00:49:01,080
Speaker 2: With the additional keyfop that that they're going to include.

1095
00:49:01,360 --> 00:49:02,520
Speaker 1: But wait a second, I want to know if it

1096
00:49:02,560 --> 00:49:05,600
Speaker 1: actually runs, has like the timing belts been changed recently?

1097
00:49:05,760 --> 00:49:08,640
Speaker 2: No, no, no, no, just look at this over here, right, distraction distraction.

1098
00:49:09,080 --> 00:49:11,439
Speaker 1: Yeah no, we buffed it. It looks great, right, But the

1099
00:49:11,480 --> 00:49:13,719
Speaker 1: reality is, what's what's going on to the hood Like this,

1100
00:49:14,120 --> 00:49:16,799
Speaker 1: The car is kind of a pos right, and the

1101
00:49:16,840 --> 00:49:19,439
Speaker 1: same is true for an indexed universels Yeah.

1102
00:49:19,719 --> 00:49:19,919
Speaker 2: Same.

1103
00:49:20,000 --> 00:49:21,759
Speaker 1: The salesperson is really stoked to sell it to you

1104
00:49:21,840 --> 00:49:24,120
Speaker 1: because they make out like a bandit exactly.

1105
00:49:24,280 --> 00:49:27,239
Speaker 2: But yeah, well so it's not just how expensive they are.

1106
00:49:27,400 --> 00:49:29,239
Speaker 2: But like the root of the problem is that this

1107
00:49:29,280 --> 00:49:32,000
Speaker 2: is a life insurance product that's basically in search of

1108
00:49:32,080 --> 00:49:35,120
Speaker 2: a problem. It's been created and they're trying to like

1109
00:49:35,520 --> 00:49:38,200
Speaker 2: backsell it to folks. The real reason to have actual

1110
00:49:38,239 --> 00:49:40,600
Speaker 2: life insurance is just to ensure that your family is

1111
00:49:40,640 --> 00:49:44,120
Speaker 2: taken care of were you to pass away prematurely, if

1112
00:49:44,160 --> 00:49:48,200
Speaker 2: they were counting on your income or the value or

1113
00:49:48,200 --> 00:49:50,960
Speaker 2: the services whatever that you're able to provide your family.

1114
00:49:51,440 --> 00:49:55,200
Speaker 2: But life insurance as an investing vehicle is unnecessary, and

1115
00:49:55,280 --> 00:49:58,800
Speaker 2: that is what indexed Universal Life does. And it's actually

1116
00:49:59,080 --> 00:50:02,239
Speaker 2: from a financial standpoin point again, it's legal, but it's

1117
00:50:02,280 --> 00:50:05,440
Speaker 2: financially harmful for most folks. And it's because the fees

1118
00:50:05,520 --> 00:50:10,120
Speaker 2: they can be breath takingly high, and those fees, as

1119
00:50:10,120 --> 00:50:12,680
Speaker 2: we all know, and it comes to investments, eat into

1120
00:50:12,760 --> 00:50:15,560
Speaker 2: those lofty return promises. It's a part of why we're

1121
00:50:15,800 --> 00:50:19,040
Speaker 2: also not fans of actively managed funds because it's not

1122
00:50:19,080 --> 00:50:24,000
Speaker 2: necessarily that we're gonna argue with the performance, although it's

1123
00:50:24,000 --> 00:50:26,359
Speaker 2: a coin flip over the course of a year as

1124
00:50:26,360 --> 00:50:29,160
Speaker 2: to whether or not an actively managed fund outperforms the market.

1125
00:50:29,440 --> 00:50:31,920
Speaker 2: But then when you account for the fees that are

1126
00:50:31,960 --> 00:50:34,560
Speaker 2: taken out of those profits, at the end of the day,

1127
00:50:34,600 --> 00:50:36,640
Speaker 2: you would have been better off to have just passively

1128
00:50:36,680 --> 00:50:38,279
Speaker 2: invested in an index fund.

1129
00:50:38,360 --> 00:50:41,960
Speaker 1: Yeah, and these policies are complicated, right, that's the problem.

1130
00:50:42,040 --> 00:50:44,480
Speaker 1: They sure make it sound like you're gonna snag stock

1131
00:50:44,520 --> 00:50:47,920
Speaker 1: market like returns inside of your insurance policy, combining the

1132
00:50:47,920 --> 00:50:50,719
Speaker 1: best of both worlds. Oh, it sounds so nice, right,

1133
00:50:50,880 --> 00:50:52,920
Speaker 1: But if you read the fine print, you'll notice that

1134
00:50:52,960 --> 00:50:56,000
Speaker 1: there's a cap on the upside of the returns you're

1135
00:50:56,000 --> 00:50:57,880
Speaker 1: able to participate in. So if the stock market has

1136
00:50:57,920 --> 00:51:00,480
Speaker 1: a particularly great year, guess what you pard space a

1137
00:51:00,480 --> 00:51:03,279
Speaker 1: little but not a lot. And so Index Universal Life.

1138
00:51:03,280 --> 00:51:06,480
Speaker 1: It combines in our minds two things that should be separate,

1139
00:51:06,800 --> 00:51:10,080
Speaker 1: investing in insurance, and it's charging you a buttload of

1140
00:51:10,120 --> 00:51:12,520
Speaker 1: money to do it right. And so the solution that

1141
00:51:12,600 --> 00:51:15,640
Speaker 1: this product is trying to is trying to solve it

1142
00:51:16,080 --> 00:51:19,800
Speaker 1: makes it makes the sales folks these insurance companies money

1143
00:51:20,000 --> 00:51:23,960
Speaker 1: at your expense. It's a product that is not suitable

1144
00:51:24,239 --> 00:51:26,680
Speaker 1: for most people, and it's charging you a buttload to

1145
00:51:26,719 --> 00:51:29,279
Speaker 1: do so. So basically, you're investing in something based on

1146
00:51:29,640 --> 00:51:33,240
Speaker 1: the promises of a salesperson and what ends up happening

1147
00:51:33,520 --> 00:51:36,880
Speaker 1: is you end up getting parted from your money in

1148
00:51:36,960 --> 00:51:41,760
Speaker 1: hopes of future gains. But these these policies don't deliver

1149
00:51:42,120 --> 00:51:44,719
Speaker 1: in the way that the salespeople say they're going to.

1150
00:51:44,840 --> 00:51:47,640
Speaker 2: What's that song? It was like, uh, got to keep

1151
00:51:47,680 --> 00:51:50,759
Speaker 2: them separated. Well, I don't know, you don't know, as

1152
00:51:50,800 --> 00:51:52,560
Speaker 2: this is a ban from the nineties. There is like

1153
00:51:52,560 --> 00:51:54,839
Speaker 2: an alt there's an ALLT band. I don't know they're

1154
00:51:54,920 --> 00:51:59,080
Speaker 2: that blind, Okay, Yeah, anyway, I thought we'd be able

1155
00:51:59,120 --> 00:52:01,799
Speaker 2: to run with it there. But fact is, yeah, this

1156
00:52:01,920 --> 00:52:05,040
Speaker 2: is something that they've combined that you don't need to combine.

1157
00:52:05,080 --> 00:52:07,880
Speaker 2: It's like it makes me think of the home shopping network,

1158
00:52:07,920 --> 00:52:10,480
Speaker 2: and it's like they've got all these products, but really

1159
00:52:10,520 --> 00:52:13,279
Speaker 2: do you need these products. They've combined the functions of

1160
00:52:13,320 --> 00:52:15,239
Speaker 2: this thing and this thing, and they've smashed it into

1161
00:52:15,280 --> 00:52:18,480
Speaker 2: one thing, this glorious product that you should buy, but

1162
00:52:18,560 --> 00:52:19,279
Speaker 2: you don't need that thing.

1163
00:52:19,360 --> 00:52:22,520
Speaker 1: Yeah, Like it's three and one. It's like things don't

1164
00:52:22,520 --> 00:52:24,879
Speaker 1: really need the one I don't And and actually all

1165
00:52:24,880 --> 00:52:27,640
Speaker 1: three of those things into one makes note like like, uh.

1166
00:52:28,000 --> 00:52:30,360
Speaker 2: Like edible underwear. Remember the first time I heard I

1167
00:52:30,360 --> 00:52:33,440
Speaker 2: heard of edible underwear. I was just like, that's disgusting. Like,

1168
00:52:33,960 --> 00:52:37,400
Speaker 2: these are two things. They shouldn't be combined. Nobody, I

1169
00:52:37,400 --> 00:52:40,000
Speaker 2: don't care who it is that you love. Edible underwear

1170
00:52:40,000 --> 00:52:42,239
Speaker 2: should not be a thing. We should keep the things

1171
00:52:42,239 --> 00:52:45,880
Speaker 2: that we eat separate from underwear. Underwear's nasty. That's how

1172
00:52:46,200 --> 00:52:49,359
Speaker 2: we feel about this indexed Universal life. And so let's

1173
00:52:49,360 --> 00:52:52,960
Speaker 2: get back to the cost portion of an IUL policy.

1174
00:52:53,200 --> 00:52:55,960
Speaker 2: Part of the reason that we love term policies so much,

1175
00:52:56,239 --> 00:52:59,040
Speaker 2: and this is the alternative to index universal life, are

1176
00:52:59,239 --> 00:53:02,440
Speaker 2: level term life insurance policies. The reason that those are

1177
00:53:02,440 --> 00:53:05,640
Speaker 2: so great is because they are so dang cheap, and

1178
00:53:05,760 --> 00:53:08,799
Speaker 2: cheap doesn't always actually mean better, of course, but an

1179
00:53:08,840 --> 00:53:12,400
Speaker 2: IUL policy it can easily cost Joe you tease to

1180
00:53:12,440 --> 00:53:17,000
Speaker 2: this earlier fifteen times more in premiums each and every

1181
00:53:17,040 --> 00:53:20,520
Speaker 2: single month, and so instead of just like a like

1182
00:53:20,560 --> 00:53:22,680
Speaker 2: twenty bucks a month for life insurance, you might be

1183
00:53:22,719 --> 00:53:26,960
Speaker 2: forking over three hundred bucks for this much fancier product

1184
00:53:27,040 --> 00:53:29,920
Speaker 2: that you don't even need. And like, truly, the goal

1185
00:53:29,960 --> 00:53:31,719
Speaker 2: of life insurance is to have a policy in place

1186
00:53:31,800 --> 00:53:33,880
Speaker 2: that's gonna never actually pay you a dime. It's just

1187
00:53:33,960 --> 00:53:36,359
Speaker 2: there just in case in the worst case scenario where

1188
00:53:36,360 --> 00:53:39,879
Speaker 2: you live forever or at least like you're gonna live

1189
00:53:39,920 --> 00:53:42,879
Speaker 2: outlive that thirty year period that that policy is gonna last,

1190
00:53:42,880 --> 00:53:45,600
Speaker 2: and then after that you're able to self ensure, or

1191
00:53:45,800 --> 00:53:48,239
Speaker 2: fact is, you're no longer going to have individuals who

1192
00:53:48,280 --> 00:53:51,200
Speaker 2: are dependent on your income at that point, so you

1193
00:53:51,280 --> 00:53:54,799
Speaker 2: do not need a permanent death benefit, and where you

1194
00:53:54,840 --> 00:53:57,319
Speaker 2: to opt for one, it's gonna cost you way too

1195
00:53:57,400 --> 00:53:58,879
Speaker 2: much to have that policy in.

1196
00:53:58,840 --> 00:54:02,640
Speaker 1: Place, providing you don't need, right at least not to

1197
00:54:02,880 --> 00:54:06,480
Speaker 1: nearly that extent. It's like bringing bazooka to a knife fight.

1198
00:54:06,600 --> 00:54:09,479
Speaker 1: It's like it's it's too much. It's something you don't need, and.

1199
00:54:09,600 --> 00:54:11,959
Speaker 2: Like all I need is a cannon opener a knife,

1200
00:54:12,160 --> 00:54:13,839
Speaker 2: So like, get out here with a stab my cannon beans.

1201
00:54:13,880 --> 00:54:14,880
Speaker 2: I just want to crack this thing out.

1202
00:54:14,960 --> 00:54:17,239
Speaker 1: Like, quit making me a product that like does ten

1203
00:54:17,280 --> 00:54:19,520
Speaker 1: different things. It's like some sort of multitol when I

1204
00:54:19,600 --> 00:54:21,759
Speaker 1: just need the one. So take the simple approach. Get

1205
00:54:21,800 --> 00:54:23,719
Speaker 1: a term life policy to make sure your family is

1206
00:54:23,760 --> 00:54:26,440
Speaker 1: taken care of in the event of, of course you're passing,

1207
00:54:26,680 --> 00:54:30,080
Speaker 1: save a ton of money versus this IUL policy that

1208
00:54:30,120 --> 00:54:33,960
Speaker 1: you're being pitched, and then use those additional dollars We're

1209
00:54:33,960 --> 00:54:36,320
Speaker 1: talking like hundreds of dollars a month in additional dollars

1210
00:54:36,360 --> 00:54:38,759
Speaker 1: that then you're not paying towards the IUL premiums to

1211
00:54:38,840 --> 00:54:43,000
Speaker 1: throw into low cost index funds, preferably through your retirement accounts.

1212
00:54:43,000 --> 00:54:46,120
Speaker 1: You're keeping these two things separate. You're letting these accounts

1213
00:54:46,320 --> 00:54:48,920
Speaker 1: do what they do best, the term life insurance policy

1214
00:54:49,000 --> 00:54:51,919
Speaker 1: for like twenty or thirty years in all likelihood doing

1215
00:54:51,960 --> 00:54:54,799
Speaker 1: what it does best for a really inexpensive rate, and

1216
00:54:54,840 --> 00:54:56,959
Speaker 1: then letting your retirement accounts do what they do best,

1217
00:54:57,120 --> 00:54:59,240
Speaker 1: funneling as much money as you can in that direction.

1218
00:54:59,680 --> 00:55:02,160
Speaker 1: And while while an I U L and Index Universal

1219
00:55:02,160 --> 00:55:04,759
Speaker 1: Life policy, it might sound like a smart product when

1220
00:55:04,760 --> 00:55:07,719
Speaker 1: the salesperson is covering the highlights you you'd really be

1221
00:55:07,800 --> 00:55:10,400
Speaker 1: opting for an inefficient product that cost you more, and

1222
00:55:10,440 --> 00:55:13,160
Speaker 1: that's going to provide worse returns for you for decades

1223
00:55:13,200 --> 00:55:15,279
Speaker 1: to come. I'd rather see you, yeah, use your money

1224
00:55:15,280 --> 00:55:18,439
Speaker 1: in a more efficient manner, and that they also comes

1225
00:55:18,440 --> 00:55:19,080
Speaker 1: with fewer fees.

1226
00:55:19,160 --> 00:55:21,680
Speaker 2: That's right. Yeah, And this isn't to just prove that

1227
00:55:21,760 --> 00:55:23,560
Speaker 2: I wasn't listening to what you were saying, Joel, But

1228
00:55:23,760 --> 00:55:26,640
Speaker 2: I think it was Offspring. Did you ever listen to Offspring?

1229
00:55:26,800 --> 00:55:26,880
Speaker 4: Not?

1230
00:55:27,000 --> 00:55:29,040
Speaker 1: Really? No, those are big, so I know the big song?

1231
00:55:29,080 --> 00:55:29,759
Speaker 4: What was it? Oh?

1232
00:55:29,800 --> 00:55:31,440
Speaker 2: I don't know. But what of their songs was this?

1233
00:55:31,640 --> 00:55:31,799
Speaker 4: Was? That?

1234
00:55:31,880 --> 00:55:32,279
Speaker 2: Was that one?

1235
00:55:32,360 --> 00:55:32,440
Speaker 4: Like?

1236
00:55:32,520 --> 00:55:35,560
Speaker 2: Hey, hey got it? Chose cool? I was sorry it

1237
00:55:35,560 --> 00:55:36,640
Speaker 2: wasn't cool?

1238
00:55:36,640 --> 00:55:39,279
Speaker 1: Guy. That's like the only nineties band.

1239
00:55:39,640 --> 00:55:41,560
Speaker 2: No, there were lots of nineties bands, but.

1240
00:55:43,239 --> 00:55:44,040
Speaker 1: That was my favorite by far.

1241
00:55:44,160 --> 00:55:44,279
Speaker 2: Well.

1242
00:55:44,280 --> 00:55:46,359
Speaker 1: I love Oasis. I mean I like Tooting the Blowfish too,

1243
00:55:46,360 --> 00:55:48,280
Speaker 1: but I try not to admit that out loud because

1244
00:55:48,280 --> 00:55:49,879
Speaker 1: a lot of people judge me when I tell them that.

1245
00:55:50,040 --> 00:55:53,880
Speaker 1: So whod he is your go to karaoke artists, though

1246
00:55:53,920 --> 00:55:56,000
Speaker 1: of course it is yeah that in Creed.

1247
00:55:56,880 --> 00:55:59,480
Speaker 2: Go ahead and move on to the beer. Definitely not Creed.

1248
00:56:00,560 --> 00:56:02,600
Speaker 2: You and I enjoyed during this episode. This was a

1249
00:56:02,640 --> 00:56:07,280
Speaker 2: delusional deformities. This was a double I p A by Burial.

1250
00:56:07,360 --> 00:56:12,319
Speaker 2: They're out of Asheville, North Carolina. But that's how I

1251
00:56:12,320 --> 00:56:14,399
Speaker 2: felt A felt the spear.

1252
00:56:14,440 --> 00:56:16,560
Speaker 1: I want to describe it in sounds, what we're uh?

1253
00:56:16,640 --> 00:56:19,200
Speaker 2: What were your thoughts on this one? M mmm likidy split.

1254
00:56:20,719 --> 00:56:22,880
Speaker 1: Now I'm gonna say so this one had lactose in it,

1255
00:56:23,120 --> 00:56:25,520
Speaker 1: which gave it like this, this smoothness. And so the

1256
00:56:25,560 --> 00:56:28,319
Speaker 1: smooth with the hot bite, and any any I PA

1257
00:56:28,360 --> 00:56:29,520
Speaker 1: you're gonna get from Burial.

1258
00:56:29,840 --> 00:56:31,280
Speaker 2: It's going to have that hot bite.

1259
00:56:31,360 --> 00:56:33,719
Speaker 1: I think they use more hops than almost any other brewer.

1260
00:56:33,800 --> 00:56:37,920
Speaker 1: So but that with that hop insanity combined with the

1261
00:56:38,000 --> 00:56:41,680
Speaker 1: lactose smoothness just creates kind of a delicious, approachable IPI.

1262
00:56:41,880 --> 00:56:44,880
Speaker 1: It balances out, yeah, approachable for a double. So this

1263
00:56:45,040 --> 00:56:46,960
Speaker 1: is definitely a bigger I p A.

1264
00:56:47,120 --> 00:56:49,800
Speaker 2: If you have never had an I p A before,

1265
00:56:50,040 --> 00:56:53,160
Speaker 2: don't go walking into your local package store and see

1266
00:56:53,160 --> 00:56:55,120
Speaker 2: a double and think that that means it's twice as good.

1267
00:56:55,680 --> 00:56:58,960
Speaker 2: It kind of means that to us because it's leave

1268
00:56:58,960 --> 00:56:59,560
Speaker 2: it to the pros.

1269
00:57:01,200 --> 00:57:01,399
Speaker 4: Well.

1270
00:57:01,440 --> 00:57:03,040
Speaker 2: I mean, honestly, the first time I ever have it,

1271
00:57:03,520 --> 00:57:05,920
Speaker 2: that I ever had an ipa, like literally, I was

1272
00:57:05,960 --> 00:57:09,520
Speaker 2: living in North Carolina, very close to Asheville, and my

1273
00:57:09,560 --> 00:57:13,400
Speaker 2: friend Dan, he said, it's an acquir taste, and I still, like,

1274
00:57:13,440 --> 00:57:16,320
Speaker 2: I literally remember drinking that duck rabbit I think it

1275
00:57:16,360 --> 00:57:18,440
Speaker 2: was a duck rabbit ipa there on the spot, and

1276
00:57:18,440 --> 00:57:20,240
Speaker 2: I just remember thinking, oh man, this is the most

1277
00:57:20,480 --> 00:57:23,640
Speaker 2: terrible tasting beer that I have ever had. But it

1278
00:57:23,680 --> 00:57:25,160
Speaker 2: does have a certain bitterness to it.

1279
00:57:25,120 --> 00:57:26,440
Speaker 1: Kind of like the first time I had Scotch. But

1280
00:57:26,480 --> 00:57:29,160
Speaker 1: then those acquired tastes turn into your favorite places.

1281
00:57:29,080 --> 00:57:31,840
Speaker 2: Somehow it evolves. But but yeah, so avoid the doubles,

1282
00:57:31,880 --> 00:57:34,520
Speaker 2: avoid the triples. But I do think that the New

1283
00:57:34,560 --> 00:57:38,560
Speaker 2: England hazes they do have a sweetness, kind of a

1284
00:57:38,640 --> 00:57:41,160
Speaker 2: orange juiciness to them that do make them a little

1285
00:57:41,160 --> 00:57:43,400
Speaker 2: more approachable than the West Coast IPAs, because those West

1286
00:57:43,400 --> 00:57:47,800
Speaker 2: Coast IPAs have that like orange peel, pith, piny resiny notes,

1287
00:57:47,840 --> 00:57:49,600
Speaker 2: and that's not what you get out of some of

1288
00:57:49,600 --> 00:57:53,000
Speaker 2: these East Coast hazes. But this was a perfect example

1289
00:57:53,160 --> 00:57:56,040
Speaker 2: of hazy double IPA. I'm glad you and I got

1290
00:57:56,080 --> 00:57:57,560
Speaker 2: to share this one today on the show.

1291
00:57:57,760 --> 00:58:00,960
Speaker 1: For sure love all things burial, and this one was excellent.

1292
00:58:01,040 --> 00:58:02,600
Speaker 1: All right, that's going to do it for this episode.

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Speaker 1: If you want show notes links to anything that we

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00:58:05,400 --> 00:58:08,280
Speaker 1: mentioned or resources that we used on the show, you

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00:58:08,320 --> 00:58:11,520
Speaker 1: can find those up on our website at howtomoney dot com. Also,

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Speaker 1: if you have a question for us, we'd love to

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00:58:13,240 --> 00:58:15,200
Speaker 1: take it on an upcoming episode. Just got a how

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Speaker 1: to money dot com slash ask or or literally just

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Speaker 1: record your question into your phone and send it over

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00:58:20,640 --> 00:58:22,840
Speaker 1: our way at how to Moneypod at gmail dot com.

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Speaker 2: That's right, It is super easy to do. But Joel,

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Speaker 2: that is going to be it for this episode until

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Speaker 2: next time. Best Friends Out, Best Friends Out.