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

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Speaker 1: Today we're here to answer your listener questions.

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Speaker 2: Something about that reminded me of like Schoolhou's rock first,

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Speaker 2: like a bill that it's the Capitol Hill, that whole

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Speaker 2: thing happy, what is it middle of March? To everybody?

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Speaker 1: You talk like the bill the whole episode today, I'm

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Speaker 1: just still bail.

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Speaker 2: Yeah, that's how That's how he did. I remember watching

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Speaker 2: that in third grade or whatever it was, and I

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Speaker 2: watched that.

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Speaker 1: That was like wholesome stuff man like. But it's sad.

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Speaker 1: I don't I don't know that's applicable anymore. Now it's like,

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Speaker 1: oh my god, I'm just an executive order. Bills don't

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Speaker 1: really happen like they used to back in the day's

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Speaker 1: defunct legislative body called Congress way that we used to

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Speaker 1: actually enact legislation laws that stuck around as opposed to

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Speaker 1: changing every four years.

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Speaker 2: As the executive changes. But we've got there's no questions

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Speaker 2: to get to man, we're gonna hear from a couple

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Speaker 2: who has a load of cash to invest or to

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Speaker 2: recast their mortgage, which isn't something that we've talked about recently.

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Speaker 2: So I'm excited about that.

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Speaker 1: Most people don't even know what a recast or recast.

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Speaker 2: It's been a minute. We're going to talk all about

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Speaker 2: Trump accounts, whether they're worth it, kind of where they

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Speaker 2: stack up in the sort of personal finance paradigm, what

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Speaker 2: we are planning to do in regards to the Trump accounts.

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Speaker 2: And we're also going to hear from a listener who

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Speaker 2: got some bad advice from Dave Ramsey.

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Speaker 1: I believe she called him. That's right, David.

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Speaker 2: We're going to go there. Yeah, so we'll get all

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Speaker 2: that more little battle.

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Speaker 1: Of HTM versus d R. But we'll give it that

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Speaker 1: in a second.

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Speaker 2: But first, you know who's going to come out on

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Speaker 2: top the poor not poor boys, not Ramsey solutions. Come

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Speaker 2: on some good folks over there. Yes, yeah, there's Orgs

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Speaker 2: in particular. Is he's my favorite.

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Speaker 1: He's great.

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Speaker 2: He's great.

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Speaker 1: But we have Jade on not too long ago, Jade Warshaw,

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Speaker 1: and she liked her a lot too. Yeah.

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Speaker 2: Hey, I want to spend a quick minute and talk

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Speaker 2: about this new account that I opened up. But okay,

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Speaker 2: this is an account that's been around for actually not

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Speaker 2: all that long. It's it's a it's a relatively newer

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Speaker 2: Fidelity account. It's called the Youth Fidelity account or is

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Speaker 2: it maybe it's Fidelity Youth Account. I forget. Anyway, my daughter,

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Speaker 2: she was like, hey, I want to be able to

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Speaker 2: have a debit card. She's getting older, kind of going

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Speaker 2: out with friends. Wants to be able to not constantly

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Speaker 2: have to count her cash that she has on hand

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Speaker 2: as well because she has acquired some jobs and she's

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Speaker 2: making more and more money. And so we found this

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Speaker 2: thing going to the clubs. Yeah, not quite doing it yet,

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Speaker 2: thank goodness. But I will say she, oh, I was

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Speaker 2: bummed because we created this account and then I immediately

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Speaker 2: saw that, oh, we're planning to phase this out. That

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Speaker 2: is not the case. It's the app. So there is

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Speaker 2: a Fidelity Youth app that they launched a few years ago.

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Speaker 2: They're getting rid of that app literally this month here

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Speaker 2: in March. Okay, but the actual account is still going

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Speaker 2: to stick around. And I will say, man, so far,

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Speaker 2: so good. I'm sure there's other listeners out there who've

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Speaker 2: probably tested the waters and have plenty to say as well.

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Speaker 2: But technically speaking, it is a brokerage account, so it is.

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Speaker 2: It was I think created as sort of like a

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Speaker 2: counter to Robinhood kind of gobbling up all of this

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Speaker 2: market share especially, But we are treating it like a

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Speaker 2: spending account, like a checking account, because the the amount

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Speaker 2: that's in there automatically sweeps into a money market account.

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Speaker 2: It's all automatic, and so she's earning a solid three

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Speaker 2: something percent on the cash that she's got in there.

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Speaker 2: It does have a routing number and ah whatever all that.

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Speaker 2: So what you can do then is that means you

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Speaker 2: can also link it to Venmo, you can link it

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Speaker 2: to cash app. So in that way it can perform

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Speaker 2: just like a like a typical spending or typical checking account.

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Speaker 1: She's entered the freewheeling real world of digital yeah dude, money, Yeah,

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Speaker 1: which I have.

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Speaker 2: Been hesitant to to get there because we early on

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Speaker 2: launch into it a little too hard from the digital standpoint,

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Speaker 2: and I realized, you know what, let's just dumb this

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Speaker 2: all down. Focus on cash. Really, let's focus on Hey,

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Speaker 2: if you work, you get money. If you don't work,

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Speaker 2: you're gonna be broke, especially when they essentially earned. Understanding

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Speaker 2: the value of a dollar.

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Speaker 1: Especially when they're single digit ages, you know, like we'll say,

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Speaker 1: hit double digits. I think they're they're typically ready from

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Speaker 1: my experience, to enter into the digital realm a little

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Speaker 1: bit more, especially now when like preteens and you know,

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Speaker 1: almost teenagers, like then they're for real ready for them exactly.

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Speaker 2: Yeah, So it's a it's a teen accounts. And I

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Speaker 2: know y'all have used so one of the reasons you've

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Speaker 2: got like the capital one account right for for your

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Speaker 2: oldest and you've been sounds like you've been happy for the.

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Speaker 1: Top two old just too.

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Speaker 2: Yeah. Nice. This also has a free debit card and

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Speaker 2: so we just we just ordered that and so the

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Speaker 2: ability to for me to pay her directly for jobs

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Speaker 2: or baby seating gigs around the house and for that

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Speaker 2: money to show up instantly as well, because you can

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Speaker 2: you set up your own cash management account over there

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Speaker 2: and then it if she pays for something, she just

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Speaker 2: literally sends it over where I draw it. I guess

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Speaker 2: out of her account in that way, can she and

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Speaker 2: then when I pay her, I initiate that and it

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Speaker 2: shows up like pretty much instantly as opposed to it

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Speaker 2: taking like multiple days. Feels like a kind of a bummer,

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Speaker 2: you know, because you're not I want to cement those

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Speaker 2: lessons like ill, you know, I want the closest thing,

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Speaker 2: the closest physical cash equivalent of it showing up right

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Speaker 2: away to sort of connect those lessons.

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Speaker 1: SAME's true with the Capital One just because I have

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Speaker 1: a Capital One account sending money to then the Capital

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Speaker 1: One accounts that the girls have, Yeah, happens instantaneous, instantaneously,

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Speaker 1: which is nice. And so I guess it seems like,

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Speaker 1: really there are very few options in regards to teen

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Speaker 1: and preteen accounts out there that are fee free, that

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Speaker 1: are easy to use them, that are robust enough. But

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Speaker 1: my goodness, seems like Capital One and Fidelity are like

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Speaker 1: two of the top choices in that.

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Speaker 2: Solid Yeah, I was hoping. Actually, I wasn't surprised to

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Speaker 2: see that Vanguard didn't have much to offer because, yeah,

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Speaker 2: a little old school, they're got alls go there. Yeah,

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Speaker 2: their offerings aren't very deep as far as what you

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Speaker 2: know when it comes to the kids, and a lot

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Speaker 2: of their products don't have a whole lot of bells

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Speaker 2: and whistles. But so far, I've been very happy with

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Speaker 2: the with the Fidelity Youth account. I'll keep folks posted

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Speaker 2: on that as we continue to use it.

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Speaker 1: For sure. Sounds good. All right, Let's mention the beer

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Speaker 1: happened on this episode. It's called Wavelength. It's an ipa

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Speaker 1: by equilibrium.

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Speaker 2: Yeah, it's been a minute since we've had New England hazy.

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Speaker 1: I think, yeah, and pen minutes we've had a beer

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Speaker 1: by Equilibrium and that's I.

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Speaker 2: Think they're out in New York, right, that sounds right.

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Speaker 1: I just distinctly remember the first time having sticker shock

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Speaker 1: at four pack of beer. It was an equal equilibrium beer.

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Speaker 1: It was like thirty two dollars for a four pack

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Speaker 1: or something.

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Speaker 2: And equilibrium or you think about Mortalis, Oh, maybe it

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Speaker 2: was more Mortalis is the one where you get a

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Speaker 2: four pack and it was like thirty something out and

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Speaker 2: you're like, what the hell?

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Speaker 1: Yeah, And then I tried it and I was like,

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Speaker 1: that's not worth that much. That's where they're overcharging.

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Speaker 2: That's when the craft beer equivalent you're just like, yeah,

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Speaker 2: I don't know, it's been that much. He does have

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Speaker 2: his limits, I guess.

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Speaker 1: And by the way, if you have a money question,

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Speaker 1: please do send your voice memo our way. We love

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Speaker 1: to hear it. The more interesting and unique, the better,

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Speaker 1: just record more.

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Speaker 2: Likely it is to make it on the show. That's right,

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Speaker 2: We'll got some really good ones today.

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Speaker 1: Yeah, like really interesting questions. I'm stoked to tackle.

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Speaker 2: How the money listeners are coming through.

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Speaker 1: Yes, if you've got one of those, good to hoda

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Speaker 1: money dot com, slash ask or literally just record your

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Speaker 1: question on the voice memo app of your phone, send

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Speaker 1: it to us how to moneypod at gmail dot com.

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Speaker 1: All right, Matt, let's talk about Let's let's get to

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Speaker 1: a question about mortgage recasting. It's an interesting term a

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Speaker 1: lot of people probably are not familiar with.

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Speaker 3: Hey, Matt Joel, my name is Dan from New Jersey

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Speaker 3: and my wife came into one hundred and thirty thousand

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Speaker 3: dollars and we're wondering if we should invest or recast

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Speaker 3: our mortgage. The mortgage is at a six point five

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Speaker 3: percent rate, and the recast would knock the payment down

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Speaker 3: eight hundred and fifty dollars per month. If we recast

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Speaker 3: and pay the same for the total mortgage, we could

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Speaker 3: pay it down our house in ten years. But if

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Speaker 3: you need more money, our mortgage payment is still eight

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Speaker 3: hundred fifty dollars shaper, which is great. If we invest,

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Speaker 3: assuming the market would beat six point five percent intent

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Speaker 3: to twenty years, we'd have more money at the end

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Speaker 3: of that term. Emotionally, we'd love to have no mortgage payment,

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Speaker 3: but financially we'd love to have more money. Our goals

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Speaker 3: are to retire early and pay down the house, but

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Speaker 3: we're not sure which one of those goals to allocate

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Speaker 3: this money to. Thanks for your advice, all.

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Speaker 2: Right, Dan, Thank you for reaching out and the fact

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Speaker 2: that you guys have six digits on hand, like that

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Speaker 2: you came into one hundred and thirty thousand, that's what

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Speaker 2: he said. That's awesome.

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Speaker 1: I'm curious. That's great. I would like to know how

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Speaker 1: you come into one hundred and thirty.

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Speaker 2: But I feel like it typically means, I mean something

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Speaker 2: that big. It typically means like an inheritance.

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Speaker 1: I think this is abody that a massive drug deal

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Speaker 1: gone right, you know, breaking Bad style or.

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Speaker 2: Yeah, this is the money money that you find on

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Speaker 2: find using money dot com or whatever. Like there's a

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Speaker 2: difference between it's like hundreds usually like sixty seven dollars

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Speaker 2: that are sitting over there, as opposed to yeah, one

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Speaker 2: hundred and thirty thousand dollars. But I love that you

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Speaker 2: are looking to optimize this chunk of money. And first

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Speaker 2: of all, I think it's going to be important for

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Speaker 2: us to cover what a mortgage recast is, because this

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Speaker 2: is not super common, although maybe it should be, especially

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Speaker 2: as there's more and more folks out there who have

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Speaker 2: higher mortgage interest rates. But a mortgage recast is when

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Speaker 2: you make a large lump sum payment towards your mortgage principle,

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Speaker 2: and then the lender recalculates your monthly payment based on

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Speaker 2: this new lower balance that you have, and this is

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Speaker 2: the key part, without changing your interest rate or the

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Speaker 2: loan term. So essentially everything stays the same except for

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Speaker 2: the actual payment. They re essentially amateurize it and take

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Speaker 2: into account how much you've put down in order to

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Speaker 2: eliminate the principal balance that you have.

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Speaker 1: Right, and you typically pay a pretty small fee, which

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Speaker 1: it costs a whole lot less than refinancing. You know,

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Speaker 1: you talk about refinancing, you're talking about creating a whole

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Speaker 1: new loan. It's a strenuous process and it can be

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Speaker 1: incredibly expensive to refinance. And then for a lot of

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Speaker 1: people about when they're refinance, they're to lower their rate

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Speaker 1: they're getting, they're lengthening how long it's going to take

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Speaker 1: them ultimately to pay off their mortgage as well, right,

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Speaker 1: if you had a thirty year mortgage, let's move to

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Speaker 1: a fifteen unless you do that, which I love for

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Speaker 1: people to consider a lot of people a lot of

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Speaker 1: people don't. But so then you're talking about kind of

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Speaker 1: similar to what we talk about with with cars. You're

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Speaker 1: talking about being in debt for that home for a

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Speaker 1: long period of time, paying more and overall interest. Yeah,

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Speaker 1: maybe you're getting a better interest rate, but still right, yes, exactly,

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Speaker 1: that's right. Maybe when you're eighty eight you finally own

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Speaker 1: your home free and clear. The nict thing about this process, though,

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Speaker 1: is you know, depending on how much free cash you

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Speaker 1: have you can chop off a good bit of your

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Speaker 1: monthly payment. You're going to reduce the overall amount of

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Speaker 1: interest you pay, of course, but it's also just going

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Speaker 1: to reduce how much money you have to put towards

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Speaker 1: your mortgage every single month, which frees up cash flow

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Speaker 1: to use in other ways, of course, like saving or investing.

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Speaker 1: It's it's different than just lowering the balance by paying

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Speaker 1: a lump sum, which is what most people do. If

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Speaker 1: you're paying extra towards your mortgage, whether it's in a

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Speaker 1: lump sum or on a recurring basis, and you're putting

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Speaker 1: it towards principle that's ultimately what you're trying to do

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Speaker 1: is to pay off that mortgage more quickly, but your

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Speaker 1: payment stays the same. If you do that, you're just

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Speaker 1: going to find that no payments are required sooner rather

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Speaker 1: than later. Whether a recast makes sense depends on a

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Speaker 1: whole slew of things, including your interest rate. But I

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Speaker 1: think that's what makes a recast so interesting, that it's

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Speaker 1: unique and it's something that not many people know exist

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Speaker 1: or talk about. But for a lot of people being

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Speaker 1: able to dramatically reduce their mortgage payments by putting a

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Speaker 1: lump sum towards that mortgage in one fell swoop, that

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Speaker 1: sounds pretty nice.

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Speaker 2: Yeah, it does. I think I recall there being more

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Speaker 2: lenders who are offering one free recast as a part

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Speaker 2: of the loan product over the past like three or

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Speaker 2: four years. There's more talk about it at that point.

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Speaker 2: And so if this sounds interesting to you, I think

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Speaker 2: it's worth reaching out to your lender and seeing if

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Speaker 2: that's something that might be an option for you. But Joe, specifically,

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Speaker 2: you brought up Dan's interest rate and they've got to

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Speaker 2: six and a half percent rate so that's kind of Man,

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Speaker 2: it's tough because any more than that easy. Any less

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Speaker 2: than that, it's a bit easier to answer. They area

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Speaker 2: it is, Man, Yeah, is it more financially advantageous to

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Speaker 2: invest the dollars that you have or to work on

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Speaker 2: paying that thing off? Who knows for sure, Because obviously

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Speaker 2: investing it would have paid off more handsomely over the

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Speaker 2: past decade, but I think it's less likely that it

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Speaker 2: will over the next decade. Still, that's impossible to accurately predict.

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Speaker 2: All you can do is just look at historic returns,

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Speaker 2: maybe look at some current valuations, try to make an

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Speaker 2: educated decision. But with that in mind, I think it

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Speaker 2: does bode well for the recast. And obviously, on top

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Speaker 2: of that, not to mention, like you are getting a

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Speaker 2: known return on your money six and a half percent

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Speaker 2: that you're no longer paying and you're freeing up cash

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Speaker 2: flow on an ongoing basis, and so then you use

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Speaker 2: that extra cash to put more into the market regularly,

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Speaker 2: on an ongoing monthly basis. And yeah, I think it

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Speaker 2: would be helpful if you thought about like this, where

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Speaker 2: recasting it doesn't necessarily mean less investing, it does mean

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Speaker 2: lower stakes it means smoother investing, where you are investing

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Speaker 2: more on a regular basis month to month. Right, like

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Speaker 2: that eight hundred and fifty bucks that you freed up

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Speaker 2: more of the dollar cost average approach.

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Speaker 1: Yes, ye exactly, and one fell swoop getting rid of

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Speaker 1: some debt that's not so great. It's not credit card debt, right,

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Speaker 1: but it's still six and a half percent interest rate

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Speaker 1: on a mortgage, which is it's not ideal. And so yeah,

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Speaker 1: I think that there's just multiple checkboxes that make the

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Speaker 1: recast seem attractive to me. If I were Dan, if

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Speaker 1: I'm sitting in his shoes, six percent.

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Speaker 2: Is not ideal. It's big enough to be annoying and

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Speaker 2: get under my skin. Where I did one.

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Speaker 1: Hundred percent and bring up one hundred and fifty bucks

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Speaker 1: a month, that's not nothing, right, that sounds extra compelling

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Speaker 1: to Dan. It's great, understandably, So like eightred fifty bucks

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Speaker 1: a month. There's a lot you can do with that, right,

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Speaker 1: And the flexibility I think is such a money win,

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Speaker 1: but it's such a psychology win as well. It's likely

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Speaker 1: that giving goals, Dan, you're gonna be able to invest

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Speaker 1: all of this additional free cash flow. You're likely already

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Speaker 1: investing quite a bit more on top of that, it

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Speaker 1: sounds like, but like, let's say a difficult life circumstance

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Speaker 1: were to arise, like a job loss or some sort

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Speaker 1: of health issue to come up in your life or

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Speaker 1: the life of someone that you love, you'd be able

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Speaker 1: to dial back with a whole lot less stress, being like,

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Speaker 1: I get this like tiny little mortgage over here on

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Speaker 1: the side, And so if it means I, you know,

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Speaker 1: maybe I'm not investing the whole kitten kaboodle. I'm actually

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Speaker 1: just working a little bit less because I need more

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Speaker 1: free time right now. You can do that too, Like

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Speaker 1: the flexibility that this affords you is meaningful.

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Speaker 2: I like that. And yeah, you're you're not living on

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Speaker 2: the brink. You're not like living You're not just right

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Speaker 2: there perchon on the edge of the financial abyss. And

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Speaker 2: not that he is now.

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Speaker 1: But man, you reduce that mortgage, Pa, it's like miles

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Speaker 1: away tons of breathing room margin. Yes, yes, so much margin,

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Speaker 1: which is such a I don't know a bit for us, Matt,

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Speaker 1: that's something we value highly. And Dan also said that

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Speaker 1: owning his home out right is a priority. You're not

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Speaker 1: reducing the mortgage payoff timeline when you do a recast,

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Speaker 1: but you're getting far closer to that goal being able

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Speaker 1: to pay off that mortgage more quickly because any additional

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Speaker 1: lump sum or additional payments you want to make towards

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Speaker 1: that mortgage allows you to hit that goal even sooner.

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Speaker 2: Yeah. Yeah, that is one thing that I think I

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Speaker 2: would push Dan on a little bit, right, like that

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Speaker 2: being one of his one of his goals, And I

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Speaker 2: totally get that. But I do think, like when I

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Speaker 2: think of back, like I think about like the last

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Speaker 2: twenty years of my professional sort of career, and I

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Speaker 2: had so many different goals that shifted over the years,

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Speaker 2: like I almost want to say over the months, But

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Speaker 2: that sounds a little too not accurate. That's a little

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Speaker 2: kne jerk, that's a little isshue wash. Yeah, because there

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Speaker 2: were times when I thought when Kate and I said,

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Speaker 2: oh man, this is what we want to do, this

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Speaker 2: is all we care about. We're going to work towards this,

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Speaker 2: and you know, we would work towards that for a

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Speaker 2: couple of years and then we're like, oh, shoot, we

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Speaker 2: didn't think about this. And so I think I do

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Speaker 2: think it's worth thinking through what other goals, like, what

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Speaker 2: other medium term goals that Dan might have, because he saying,

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Speaker 2: like I remember thinking, oh, I want to pay off

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Speaker 2: my house as soon as possible, But you lock up

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Speaker 2: all your money if you do dump it into the

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Speaker 2: home like that, and then oh, it's a little bit

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Speaker 2: tougher to pull that money out. If you do take

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Speaker 2: that money out, you're you're certainly having to pay for it,

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Speaker 2: as opposed to, Oh, maybe we want to renovate this home.

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Speaker 2: Is that a possibility. Oh maybe we want to have kids.

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Speaker 2: There's a chance that that's going to cost us a

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Speaker 2: little bit more money. Oh maybe that means we actually

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Speaker 2: have less income coming in every month because one of

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Speaker 2: us ends up staying home. Maybe we want to start

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Speaker 2: a business that's something that can that tends to be

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Speaker 2: capital heavy. And so I think identifying some of these

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Speaker 2: potential other medium term goals could lead you to maybe

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Speaker 2: doing both and not doing both. From the standpoint of, Okay,

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Speaker 2: you're dumping all the money in, you're recasting. All of

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Speaker 2: a sudden, you got the freedom cash flow to be

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Speaker 2: able to month invest on a monthly basis, but possibly

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Speaker 2: to where you're not fully using all that money to

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Speaker 2: dump into the home to recast. So this is I

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Speaker 2: think where you can kind of split the difference and

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Speaker 2: find a way to recast, reduce your monthly payment but

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Speaker 2: still retain I don't know, like thirty forty thousand dollars

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Speaker 2: on hand, where you're setting yourself up for a potential future,

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Speaker 2: medium term goal that you don't even know that you

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Speaker 2: have yet. That's I think Dan would put you in

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Speaker 2: such a beautiful position and give you, guys, not only

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Speaker 2: options from a oh, we've got time to be able

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Speaker 2: to make decisions off in the future, but like completely

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Speaker 2: you are controlling your own destiny. You are at the

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Speaker 2: You're at the helm of the ship man.

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Speaker 1: Yeah.

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Speaker 2: That makes me really excited for you guys, a little best.

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Speaker 1: Of both worlds right where you're like, yeah, i'mone, take

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Speaker 1: eighty to one hundred of this and I'm going to

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Speaker 1: recast the mortgage with that. That's going to you know,

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Speaker 1: reduce my payment by not quite as much, by still

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Speaker 1: by a significant amount. And then I've got this other

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Speaker 1: lump sum of cash that I have a little more flexibility, liquidity,

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Speaker 1: I have more optionality over what I want to do

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Speaker 1: in the near and medium term. And I think You're

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Speaker 1: probably not suggesting that he blows like all thirty grand

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Speaker 1: of that on some like dope you're to be in

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Speaker 1: vacation or something like that. But it's like, hey, well,

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Speaker 1: and I don't know if this is inheritance. Something that

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Speaker 1: you and I talk about, mattis maybe you do take

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Speaker 1: a percentage of that ten percent lots of times to

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Speaker 1: honor that person's legacy, to use it in a way

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Speaker 1: that creates memories that for yourself and like go to

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Speaker 1: the place were favorite vacation spot that you took with them,

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Speaker 1: And there's like there's something you can to be said

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Speaker 1: for using money in just a purely joyful way, right

401
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Speaker 1: that you stumble upon that you weren't necessarily like counting on, right,

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Speaker 1: but then with the majority, with the rest of it

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Speaker 1: to just really further your financial goals. So Dan take

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Speaker 1: that into consideration as well. If this is money, like

405
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Speaker 1: you said, that you stumped on or came into, like

406
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Speaker 1: use a little bit of it for fun, use a

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Speaker 1: lot of it to recast this mortgage, and then maybe

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Speaker 1: keep some liquid on hand to kind of facilitate some

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Speaker 1: of those other short term goals that you got.

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Speaker 2: That's right, but Joel we've got more to get you.

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Speaker 2: We're gonna hear from our listener, who evidently has a

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Speaker 2: thin credit file. We'll hear from her and others right

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Speaker 2: after this. All right, more money questions on tap, Matt.

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Speaker 2: Let's get to more money mo questions. That's what Biggie

415
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Speaker 2: saying about. Yeah, that's what I heard. I don't know.

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Speaker 1: I never really I never really listened to. I had

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Speaker 1: a middle school friend who would listened to, but just

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Speaker 1: it was not into. It was not my jam.

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Speaker 2: Wasn't your jam? No, as opposed to the actual Space

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Speaker 2: Jam soundtrack, which I'm sure it was your jam.

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Speaker 1: I did have like the Shaquille O'Neal rap album back.

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Speaker 2: And you're like, I don't really like Biggie, but I

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Speaker 2: do like Seal.

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Speaker 1: I think it just shows one a loser. I was

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Speaker 1: in middle school.

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Speaker 2: He was on that nout.

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Speaker 1: That's what you're highlighting.

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Speaker 2: Thank you for doing. No, please, you don't even want

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Speaker 2: to get into my musical taste in middle school, all right.

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Speaker 2: I don't think I have music will taste. I don't

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Speaker 2: think I listened to music in middle school. Okay, I was.

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Speaker 1: I did like Hooti and the Blowfish, and that was

433
00:19:46,040 --> 00:19:47,679
Speaker 1: seventh grade for me, man, really oh yeah.

434
00:19:47,560 --> 00:19:48,960
Speaker 2: Oh man, you're ahead of your.

435
00:19:48,800 --> 00:19:51,200
Speaker 1: Ahead of your time still like hoodie an oasis, come

436
00:19:51,240 --> 00:19:54,080
Speaker 1: at me. You Okay, you had an older sister, right, yeah,

437
00:19:54,119 --> 00:19:56,320
Speaker 1: so she listened to some of that. I don't think so.

438
00:19:56,520 --> 00:19:59,040
Speaker 2: No. I wish I was purely okay what I was into,

439
00:19:59,119 --> 00:20:01,960
Speaker 2: because I could see situation like that where the firstborn

440
00:20:02,080 --> 00:20:03,560
Speaker 2: they're kind of like, well, I don't know, and then

441
00:20:03,560 --> 00:20:05,399
Speaker 2: they get they start to listen to some stuff and

442
00:20:05,400 --> 00:20:07,040
Speaker 2: then the kid, you know, the younger siblings are like,

443
00:20:07,080 --> 00:20:09,320
Speaker 2: oh yeah, I love that too. So yeah, I didn't

444
00:20:09,320 --> 00:20:10,960
Speaker 2: have an older sibling, so I was just kind of

445
00:20:11,000 --> 00:20:12,960
Speaker 2: like totally methode.

446
00:20:12,680 --> 00:20:14,920
Speaker 1: Flying by the seat of your pants, figuring out for yourself.

447
00:20:15,400 --> 00:20:18,800
Speaker 1: Let's hit to this question about Trump accounts and where

448
00:20:18,920 --> 00:20:23,360
Speaker 1: they stack up in the saving for your kid's order

449
00:20:23,400 --> 00:20:24,080
Speaker 1: of operations.

450
00:20:24,680 --> 00:20:27,160
Speaker 4: Hi, Joel and Matt, this is Xavier from Hawaii. Would

451
00:20:27,240 --> 00:20:28,920
Speaker 4: like to know your thoughts on the new five thirty

452
00:20:28,920 --> 00:20:31,840
Speaker 4: alpha accounts for the Trump accounts. My wife and I

453
00:20:31,880 --> 00:20:34,200
Speaker 4: are expecting our third child in the summer and would

454
00:20:34,200 --> 00:20:36,520
Speaker 4: like to take the one thousand dollars benefit for him

455
00:20:36,920 --> 00:20:39,119
Speaker 4: and was curious to know where these new types of

456
00:20:39,160 --> 00:20:42,840
Speaker 4: accounts fit in the money gear solution. A little bit

457
00:20:42,880 --> 00:20:45,639
Speaker 4: about my spouse and I. I have a stable job,

458
00:20:45,720 --> 00:20:48,040
Speaker 4: and my spouse is currently a stay at home mother

459
00:20:48,119 --> 00:20:49,840
Speaker 4: because I frequently travel for work.

460
00:20:50,920 --> 00:20:52,520
Speaker 2: Once travel is over and the.

461
00:20:52,560 --> 00:20:54,560
Speaker 4: Kids are a little bit older, she will return for

462
00:20:54,640 --> 00:20:57,919
Speaker 4: work as a registered nurse. Our current assets are a

463
00:20:57,960 --> 00:21:00,480
Speaker 4: taxable brokerage account that has two hundred and fife seven

464
00:21:00,520 --> 00:21:03,199
Speaker 4: thousand dollars in it. We fully fund a roth TSP

465
00:21:03,359 --> 00:21:06,239
Speaker 4: that has four hundred and ninety five thousand dollars, and

466
00:21:06,280 --> 00:21:08,720
Speaker 4: I fully fund a roth iray that has ninety five

467
00:21:08,760 --> 00:21:12,200
Speaker 4: thousand dollars in it. The only financial liability that I have,

468
00:21:12,400 --> 00:21:14,760
Speaker 4: or my only debt, is a mortgage on a rental

469
00:21:14,800 --> 00:21:16,879
Speaker 4: that is in a sun Belt state that pays for

470
00:21:16,960 --> 00:21:19,679
Speaker 4: itself and then some. And it's really because it has

471
00:21:19,720 --> 00:21:22,879
Speaker 4: a three percent mortgage rate. Anyways, thanks for all you do.

472
00:21:23,040 --> 00:21:26,000
Speaker 4: Looking forward to your answer on these new financial accounts.

473
00:21:26,040 --> 00:21:26,359
Speaker 4: Thank you.

474
00:21:27,040 --> 00:21:30,680
Speaker 2: Xavier is crushing it man. I love how much money

475
00:21:30,680 --> 00:21:32,679
Speaker 2: he's got set aside in all the different accounts, not

476
00:21:32,720 --> 00:21:35,760
Speaker 2: only in retirement but also in a broke taxable brokerage

477
00:21:35,760 --> 00:21:36,000
Speaker 2: as well.

478
00:21:36,080 --> 00:21:37,600
Speaker 1: You know what he mentioned too. Give him lots of

479
00:21:37,680 --> 00:21:40,920
Speaker 1: options the retirement account. If he has, they're wroth. Oh kay,

480
00:21:41,119 --> 00:21:43,359
Speaker 1: and so never gonna have to worry about that again.

481
00:21:43,400 --> 00:21:45,080
Speaker 1: Think about the grim reaper of the tax man that

482
00:21:45,119 --> 00:21:46,440
Speaker 1: a lot of people are gonna have to face down

483
00:21:46,440 --> 00:21:46,760
Speaker 1: the road.

484
00:21:46,920 --> 00:21:49,920
Speaker 2: Amazing not Xavier. Yeah, I don't know how he's actually

485
00:21:49,960 --> 00:21:51,359
Speaker 2: been able to do all this? Did he say this?

486
00:21:51,440 --> 00:21:52,960
Speaker 2: Is he's about to They're about.

487
00:21:52,720 --> 00:21:54,359
Speaker 1: To have their third round? Yeah?

488
00:21:54,400 --> 00:21:57,280
Speaker 2: Like, how is he doing it all at once? Matt props,

489
00:21:57,280 --> 00:21:58,840
Speaker 2: it's impressive. You got to go out there and pay

490
00:21:58,880 --> 00:22:00,480
Speaker 2: a visit. I should actually go out there and pay

491
00:22:00,480 --> 00:22:02,600
Speaker 2: a visit to him, because I've never been out to Hawaii.

492
00:22:02,720 --> 00:22:04,840
Speaker 2: What and I can explain? Yeah, you know that you've

493
00:22:04,880 --> 00:22:07,400
Speaker 2: been about Hawaii multiple times. We were just talking about

494
00:22:07,400 --> 00:22:10,240
Speaker 2: it yesterday with at lunch with Tim. Yeah, he was

495
00:22:10,240 --> 00:22:12,800
Speaker 2: talking about the Lalawa I don't.

496
00:22:12,600 --> 00:22:14,880
Speaker 1: Know lu La Lau or in Kawaii, like a twenty

497
00:22:14,920 --> 00:22:17,800
Speaker 1: two mile trail that want to hike at some point.

498
00:22:17,880 --> 00:22:20,600
Speaker 2: That sounds amazing. It's something I need to need to do.

499
00:22:20,800 --> 00:22:23,280
Speaker 1: Maybe. Well, if we go in person to answer Xavier's question,

500
00:22:23,320 --> 00:22:25,800
Speaker 1: then we can. We can turn into a business ride

501
00:22:25,840 --> 00:22:28,160
Speaker 1: off right and meet up for beer. Yeah, exactly.

502
00:22:28,320 --> 00:22:30,320
Speaker 2: Anytime we have beer, it's a business right off, because

503
00:22:30,640 --> 00:22:33,760
Speaker 2: it's like it's part of the show. Guests folks are like,

504
00:22:33,800 --> 00:22:36,760
Speaker 2: wait a minute, is that why they started? Yes, it is.

505
00:22:36,920 --> 00:22:39,679
Speaker 2: That is exactly why we started this thing. Let's talk

506
00:22:39,680 --> 00:22:42,800
Speaker 2: about Trump accounts, which were a part of the one Big,

507
00:22:42,840 --> 00:22:47,760
Speaker 2: Beautiful Bill Now Act, like we discussed bill going to

508
00:22:47,880 --> 00:22:51,560
Speaker 2: Capitol Hill, Joel. Basically, these accounts are available to kids

509
00:22:51,560 --> 00:22:55,440
Speaker 2: who are at eighteen and under. But the free one

510
00:22:55,440 --> 00:22:58,680
Speaker 2: thousand dollars that we keep hearing about that is only

511
00:22:58,760 --> 00:23:01,920
Speaker 2: available to kids. So they have to be US citizens,

512
00:23:01,920 --> 00:23:04,160
Speaker 2: they have to have a Social Security number, who are

513
00:23:04,240 --> 00:23:06,800
Speaker 2: going to be who have been born let's say between

514
00:23:06,880 --> 00:23:09,240
Speaker 2: twenty twenty five, or who are going to be born

515
00:23:09,880 --> 00:23:11,520
Speaker 2: within the year twenty twenty eight.

516
00:23:12,320 --> 00:23:14,159
Speaker 1: If you want your kids to get free money, like

517
00:23:14,400 --> 00:23:17,400
Speaker 1: now's the time time start like procreating so they get

518
00:23:17,520 --> 00:23:20,040
Speaker 1: three thousand dollars, it's totally worth it. Explain your family

519
00:23:20,119 --> 00:23:20,760
Speaker 1: just for this reason.

520
00:23:20,800 --> 00:23:23,000
Speaker 2: Hey, if you were already planning on it, it's certainly

521
00:23:23,119 --> 00:23:25,359
Speaker 2: nice to know that you've got that some like a

522
00:23:25,440 --> 00:23:27,159
Speaker 2: light breeze at your back. I wouldn't call it like

523
00:23:27,359 --> 00:23:29,600
Speaker 2: I wouldn't call it like a stiff wind or anything

524
00:23:29,680 --> 00:23:32,959
Speaker 2: like that. But obviously grab that free money for your

525
00:23:33,000 --> 00:23:36,960
Speaker 2: child if you are eligible. It's a IRIS form forty

526
00:23:36,960 --> 00:23:39,560
Speaker 2: five forty seven. Evidently that is what you will need

527
00:23:39,600 --> 00:23:41,240
Speaker 2: to fill o fill out if you had a child

528
00:23:41,240 --> 00:23:41,600
Speaker 2: this year.

529
00:23:41,760 --> 00:23:43,080
Speaker 1: You know why it's forty five forty seven.

530
00:23:43,160 --> 00:23:44,680
Speaker 2: Right, Oh my gosh, that's right. We know we talked

531
00:23:44,720 --> 00:23:47,840
Speaker 2: about times. Yeah, yeah, I just but I forgot. The

532
00:23:47,880 --> 00:23:51,960
Speaker 2: self promotion is never ending. It's strong with that one.

533
00:23:52,560 --> 00:23:54,040
Speaker 2: But yeah, we talked about that on a Friday flight.

534
00:23:54,080 --> 00:23:56,960
Speaker 2: I just remembered. But there's an online portal that's evidently

535
00:23:56,960 --> 00:23:59,120
Speaker 2: going to open the summer to make it a bit

536
00:23:59,160 --> 00:24:02,200
Speaker 2: easier as well. While we'll see if that actually happens,

537
00:24:02,200 --> 00:24:03,520
Speaker 2: because I feel like a lot of times with these

538
00:24:03,520 --> 00:24:05,879
Speaker 2: government promises, there's a whole lot that's talked about, not

539
00:24:05,960 --> 00:24:08,320
Speaker 2: a lot that's followed through up on.

540
00:24:08,359 --> 00:24:10,040
Speaker 1: The site is up and actually when it comes to

541
00:24:10,080 --> 00:24:12,119
Speaker 1: like Trump r X, like that sits up, like so

542
00:24:12,280 --> 00:24:14,760
Speaker 1: they've been doing a good job. It's true actually pulling

543
00:24:14,760 --> 00:24:15,080
Speaker 1: that off.

544
00:24:15,160 --> 00:24:17,000
Speaker 2: Yeah, and I will say, have you been to Trump

545
00:24:17,240 --> 00:24:20,040
Speaker 2: trump accounts dot gov. It looks good, it looks really good.

546
00:24:20,160 --> 00:24:22,800
Speaker 2: I was actually very impressed. It's a good looking site.

547
00:24:22,840 --> 00:24:24,399
Speaker 2: They've done a good job. I think it's gonna be

548
00:24:24,440 --> 00:24:27,919
Speaker 2: going through the hypotheticals and showing, hey, this one thousand

549
00:24:27,920 --> 00:24:29,880
Speaker 2: dollars if you never invest, this is how much it's

550
00:24:29,880 --> 00:24:32,840
Speaker 2: going to be by the time your child is eighteen. Here,

551
00:24:33,080 --> 00:24:34,680
Speaker 2: by the time they're twenty seven, by the time they're

552
00:24:34,680 --> 00:24:35,240
Speaker 2: fifty five.

553
00:24:35,960 --> 00:24:37,800
Speaker 1: Oh, how much was it fifty five? Do you remember?

554
00:24:37,960 --> 00:24:38,400
Speaker 2: Oh?

555
00:24:38,720 --> 00:24:41,399
Speaker 1: No, I remember because it had, it had if you'd

556
00:24:41,480 --> 00:24:44,520
Speaker 1: never contribute again, it has if you contribute like a

557
00:24:44,600 --> 00:24:46,880
Speaker 1: thousand every year, and then it had if you contribute

558
00:24:46,880 --> 00:24:48,919
Speaker 1: five thousand every year, And that one is the one

559
00:24:48,960 --> 00:24:51,320
Speaker 1: I remember, because it was something like thirteen million dollars

560
00:24:51,440 --> 00:24:55,960
Speaker 1: thirteen million, thirteen million gale five thousand every year compounding returns.

561
00:24:56,040 --> 00:24:56,879
Speaker 1: It's truly a wonder.

562
00:24:57,000 --> 00:24:58,800
Speaker 2: Yes, And this is why, maybe this is why I'm

563
00:24:58,800 --> 00:25:00,480
Speaker 2: so excited, because that's one of the things.

564
00:25:00,800 --> 00:25:02,800
Speaker 1: Although and when we talk about this, you probably don't

565
00:25:02,800 --> 00:25:05,479
Speaker 1: want to add additional yeah, yea, yeah, please don't hear

566
00:25:05,520 --> 00:25:06,159
Speaker 1: us over selling it.

567
00:25:06,200 --> 00:25:09,119
Speaker 2: Get the free money for sure, But yeah, I was

568
00:25:09,160 --> 00:25:11,600
Speaker 2: gonna say that was one of the things that really

569
00:25:11,640 --> 00:25:14,240
Speaker 2: turned me on to personal finances. Realizing sort of I'm like,

570
00:25:14,240 --> 00:25:16,840
Speaker 2: wait a minute, this can't make sense seeing some charts

571
00:25:16,840 --> 00:25:20,000
Speaker 2: when it came to compounding, diving into it, realizing that no,

572
00:25:20,160 --> 00:25:23,000
Speaker 2: in fact, this is how this works. That for me

573
00:25:23,119 --> 00:25:26,760
Speaker 2: kicked off the whole interest in investing in compounding Spaci.

574
00:25:26,880 --> 00:25:28,920
Speaker 1: Yeah, It's enough to make one get a little obsessive.

575
00:25:29,000 --> 00:25:31,800
Speaker 1: Allah Warren Buffett, who's just like, yeah, you know that,

576
00:25:32,040 --> 00:25:34,800
Speaker 1: taking that reality of compound and returns to the most

577
00:25:34,880 --> 00:25:37,520
Speaker 1: ridiculous human extent right where the vast majority of his

578
00:25:37,640 --> 00:25:41,560
Speaker 1: returns have come after he reached essentially retirement age. It's

579
00:25:41,720 --> 00:25:43,480
Speaker 1: when you see stuff like that and how powerful it

580
00:25:43,560 --> 00:25:46,399
Speaker 1: can be. It's exciting enough to get you to defray

581
00:25:46,800 --> 00:25:48,639
Speaker 1: the current usage of some of those dollars so that

582
00:25:48,720 --> 00:25:51,439
Speaker 1: you have more dollars down the road at your disposal.

583
00:25:51,680 --> 00:25:53,399
Speaker 2: It truly is a like, I don't know if he

584
00:25:53,400 --> 00:25:55,520
Speaker 2: should just take a second here to talk about compound interest,

585
00:25:55,560 --> 00:25:58,720
Speaker 2: because it's not something that we totally naturally like we

586
00:25:58,800 --> 00:26:01,680
Speaker 2: are not programmed as human beings to think in compounding terms,

587
00:26:01,760 --> 00:26:03,560
Speaker 2: right right, Like we've talked about this before. But if

588
00:26:03,600 --> 00:26:05,920
Speaker 2: you take seven, if you can do seven plus seven

589
00:26:06,280 --> 00:26:08,680
Speaker 2: plus seven plus seven plus seven, what is edgil so

590
00:26:08,720 --> 00:26:09,640
Speaker 2: I said seven five times.

591
00:26:09,720 --> 00:26:10,440
Speaker 1: Yeah, that's thirty five.

592
00:26:10,520 --> 00:26:13,280
Speaker 2: Yea, yeah, that's really easy, is it. What's seven times seven?

593
00:26:13,760 --> 00:26:15,600
Speaker 2: You can do that one? Yeah, but then time seven

594
00:26:15,840 --> 00:26:16,840
Speaker 2: times seven times seven?

595
00:26:16,960 --> 00:26:18,800
Speaker 1: Yeah, I don't know, I know, right, Like, I can't

596
00:26:18,840 --> 00:26:19,760
Speaker 1: even it's something.

597
00:26:19,600 --> 00:26:22,359
Speaker 2: Like sixteen thousand. Okay, it's over. I'm pretty sure it's

598
00:26:22,359 --> 00:26:25,200
Speaker 2: over sixteen thousand because I I did this one time

599
00:26:25,240 --> 00:26:25,760
Speaker 2: with one of my kids.

600
00:26:25,840 --> 00:26:28,240
Speaker 1: That's still just five sevens, just done differently.

601
00:26:28,119 --> 00:26:30,119
Speaker 2: Just done differently. And you don't think it should be

602
00:26:30,160 --> 00:26:32,719
Speaker 2: that much, Like, how's there such a difference between adding

603
00:26:34,040 --> 00:26:38,159
Speaker 2: five sevens as opposed to multiplying seven five times? But

604
00:26:38,400 --> 00:26:41,280
Speaker 2: it just it speaks to our inability to fully grasp

605
00:26:41,480 --> 00:26:44,680
Speaker 2: compounding and what it can do if you are harnessing

606
00:26:44,800 --> 00:26:46,240
Speaker 2: this eighth wonder of the world.

607
00:26:46,400 --> 00:26:49,000
Speaker 1: Yeah, and the people who even if you just naively

608
00:26:49,040 --> 00:26:51,240
Speaker 1: buy into it, right, which I think I did early on,

609
00:26:51,320 --> 00:26:53,080
Speaker 1: I was like, I guess it sounds good. Let me

610
00:26:53,119 --> 00:26:55,040
Speaker 1: try that, And then you look back later and you're like,

611
00:26:55,080 --> 00:26:58,000
Speaker 1: holy crap, now it works. It's literally working for me.

612
00:26:58,119 --> 00:26:58,320
Speaker 2: Yeah.

613
00:26:58,400 --> 00:27:00,840
Speaker 1: Yeah, So you mentioned trumpet. I go, I'm glad you

614
00:27:00,880 --> 00:27:03,480
Speaker 1: mentioned that that's a place to go, especially when the

615
00:27:03,960 --> 00:27:07,040
Speaker 1: portal opens in June or July. Of course, it's worth

616
00:27:07,080 --> 00:27:11,000
Speaker 1: mentioning too that there's money for kids aside from being

617
00:27:11,040 --> 00:27:14,280
Speaker 1: born between twenty twenty five and twenty twenty eight. Michael Dell,

618
00:27:15,280 --> 00:27:18,960
Speaker 1: which we talked about on Friday Flight in public private partnership,

619
00:27:19,160 --> 00:27:21,240
Speaker 1: he's offering an additional two hundred and fifty dollars for

620
00:27:21,359 --> 00:27:24,760
Speaker 1: kids ten and younger who would have been left out otherwise, right,

621
00:27:24,760 --> 00:27:29,760
Speaker 1: because it's a very narrow span of newborns essentially who

622
00:27:29,880 --> 00:27:33,040
Speaker 1: qualify for this free money. But Michael Bell was like, now,

623
00:27:33,119 --> 00:27:35,240
Speaker 1: let's give more kids the ability to get at least

624
00:27:35,280 --> 00:27:37,640
Speaker 1: some free money, which I love, Which is cool.

625
00:27:37,680 --> 00:27:39,680
Speaker 2: I love that a private individual chose to do this.

626
00:27:39,880 --> 00:27:42,000
Speaker 1: Let's get it to the elementary age kids right all

627
00:27:42,000 --> 00:27:44,800
Speaker 1: the way, so your other kids might not get as

628
00:27:44,880 --> 00:27:47,960
Speaker 1: much money, but they still stand to get some free

629
00:27:48,040 --> 00:27:51,560
Speaker 1: money for their future. Neither of these sums are life changing, right,

630
00:27:51,880 --> 00:27:54,280
Speaker 1: but like we kind of talked about with compounding returns,

631
00:27:54,880 --> 00:27:57,520
Speaker 1: they could be. They could become it depends on how

632
00:27:57,600 --> 00:28:00,359
Speaker 1: long you wait. Yeah, they could become life changing. But

633
00:28:00,480 --> 00:28:02,680
Speaker 1: they're an interesting step. I think they could breed a

634
00:28:02,760 --> 00:28:05,640
Speaker 1: lot more financial curiosity for parents and kids alike, Matt,

635
00:28:05,720 --> 00:28:10,840
Speaker 1: that's to me what this represents is that tell me

636
00:28:10,920 --> 00:28:12,760
Speaker 1: more about this account and the free money that I'm

637
00:28:12,800 --> 00:28:17,040
Speaker 1: getting and being Yeah, this could like prod people into

638
00:28:17,720 --> 00:28:20,920
Speaker 1: understanding and looking into the reality of compounding returns a

639
00:28:21,000 --> 00:28:23,480
Speaker 1: little bit more, just because there's actual money that's been

640
00:28:23,520 --> 00:28:24,879
Speaker 1: put into their hands that's at stake.

641
00:28:24,960 --> 00:28:27,399
Speaker 2: Now they got skin into the game, even though it

642
00:28:27,480 --> 00:28:30,800
Speaker 2: was free skin, right, and this is that sounds weird.

643
00:28:30,920 --> 00:28:33,840
Speaker 1: This is not one of the best accounts in the

644
00:28:33,960 --> 00:28:37,520
Speaker 1: universe in our opinion, but I could see this actually

645
00:28:37,840 --> 00:28:40,440
Speaker 1: probably not for everyone, but for at least some people,

646
00:28:40,880 --> 00:28:44,400
Speaker 1: this provoking their curiosity in a really beautiful way that's

647
00:28:44,480 --> 00:28:46,800
Speaker 1: gonna lead to a lot of benefits for them for

648
00:28:46,920 --> 00:28:47,360
Speaker 1: years to come.

649
00:28:47,440 --> 00:28:49,920
Speaker 2: Absolutely. Yeah. And again, at the very least, get the

650
00:28:49,960 --> 00:28:51,960
Speaker 2: free money it's about. So you mentioned the two fifty,

651
00:28:52,120 --> 00:28:54,240
Speaker 2: So it's two hundred and fifty dollars essentially if you

652
00:28:54,400 --> 00:28:56,000
Speaker 2: have a ten year old or younger.

653
00:28:57,040 --> 00:28:58,960
Speaker 1: Our poor preteens are left out of the equation.

654
00:28:59,120 --> 00:29:01,480
Speaker 2: Yeah, I know they barely missed it, but the rest

655
00:29:01,480 --> 00:29:03,160
Speaker 2: of our kids will be able to get that. And

656
00:29:03,200 --> 00:29:06,479
Speaker 2: so I'm obviously going to get that. But no, as well,

657
00:29:06,480 --> 00:29:08,960
Speaker 2: you can't double dip, so you are either eligible for

658
00:29:09,080 --> 00:29:11,920
Speaker 2: one or the other. So don't think that you're like, oh,

659
00:29:11,960 --> 00:29:13,920
Speaker 2: we're going to score twelve fifty. Now you're either getting

660
00:29:13,920 --> 00:29:15,920
Speaker 2: a thousand bucks or you're getting two undred and fifty bucks.

661
00:29:15,920 --> 00:29:17,600
Speaker 2: But go ahead and get that. There are a few

662
00:29:18,600 --> 00:29:20,000
Speaker 2: I don't know what I just said, a feuton, there

663
00:29:20,040 --> 00:29:23,200
Speaker 2: are a few certain qualifications that you have to pass

664
00:29:23,200 --> 00:29:25,719
Speaker 2: in order to get that. The media and income they're

665
00:29:26,000 --> 00:29:28,760
Speaker 2: willing to where you can look all that up. That

666
00:29:28,920 --> 00:29:31,600
Speaker 2: being said, I am not planning to contribute a dime

667
00:29:32,280 --> 00:29:36,520
Speaker 2: more to the kid's Trump accounts, and that's because there

668
00:29:36,560 --> 00:29:40,000
Speaker 2: are other accounts out there that offer more control. They

669
00:29:40,120 --> 00:29:43,520
Speaker 2: offer better and lower fees because of the investments, they're

670
00:29:43,880 --> 00:29:47,040
Speaker 2: structured better from a tax standpoint, they have additional flexibility.

671
00:29:47,400 --> 00:29:49,560
Speaker 2: So the five twenty nine account, for instance, is a

672
00:29:49,680 --> 00:29:52,120
Speaker 2: much better place to build money for your child's future.

673
00:29:53,040 --> 00:29:57,280
Speaker 2: And Okay, so on that note, Xavier, since you live

674
00:29:57,360 --> 00:30:01,480
Speaker 2: in Hawaii, you don't get a state deduction, and because

675
00:30:01,520 --> 00:30:04,840
Speaker 2: the fees are awful with the five twenty nine accounts

676
00:30:04,920 --> 00:30:07,320
Speaker 2: where you live there, in five twenty nine, I would

677
00:30:07,400 --> 00:30:09,600
Speaker 2: highly recommend going with another state's plan.

678
00:30:09,680 --> 00:30:11,400
Speaker 1: So it's such a trashy plan in the Hawaii plan,

679
00:30:11,440 --> 00:30:14,120
Speaker 1: it's really bad in the details. I was like, I

680
00:30:14,160 --> 00:30:16,200
Speaker 1: wanted to puke. I was like, who's running this five

681
00:30:16,240 --> 00:30:18,320
Speaker 1: twenty nine plan over there in Hawaii? They need to

682
00:30:19,160 --> 00:30:21,640
Speaker 1: figure something out or partner with Vanguard or one of

683
00:30:21,720 --> 00:30:25,320
Speaker 1: the low cost providers that's working magic for people in

684
00:30:25,560 --> 00:30:27,720
Speaker 1: dozens of other states. Like a lot of the five

685
00:30:27,720 --> 00:30:29,760
Speaker 1: twenty nine plans when they first launched, Matt, there were

686
00:30:29,840 --> 00:30:31,680
Speaker 1: like a couple really good ones, and there were a

687
00:30:31,760 --> 00:30:34,600
Speaker 1: bunch of like really subpar ones, and a lot of

688
00:30:34,640 --> 00:30:37,280
Speaker 1: them have gotten much better over the years and reduced fees.

689
00:30:37,600 --> 00:30:39,880
Speaker 1: But Hawaii doesn't seem to have gotten on that train.

690
00:30:39,960 --> 00:30:41,360
Speaker 2: They're like, not, man, We're Hawaii.

691
00:30:41,400 --> 00:30:44,560
Speaker 1: We do we want we relaxed, make no changes. So yeah,

692
00:30:44,920 --> 00:30:48,360
Speaker 1: Ohio or Utah are two of kind of are always standard,

693
00:30:48,480 --> 00:30:51,280
Speaker 1: solid favorites which prioritize low costs for people. And since

694
00:30:51,520 --> 00:30:53,880
Speaker 1: again you don't get the state tax deduction, don't go

695
00:30:53,960 --> 00:30:56,000
Speaker 1: with your actual states five twenty nine plan and go

696
00:30:56,080 --> 00:30:58,480
Speaker 1: with a better, cheaper one. And so where did he

697
00:30:58,760 --> 00:31:00,720
Speaker 1: specifically asked Matt, where do the tr Trump accounts fit

698
00:31:00,760 --> 00:31:03,800
Speaker 1: into the money gears? They kind of don't right, it's

699
00:31:03,840 --> 00:31:05,680
Speaker 1: free money from the government to help your kid get

700
00:31:05,720 --> 00:31:09,040
Speaker 1: started in investing for the future, saving extra for your kids.

701
00:31:09,240 --> 00:31:11,800
Speaker 1: It comes in money gear number seven. Typically, like you

702
00:31:11,840 --> 00:31:13,479
Speaker 1: don't even put money into a five to twenty nine

703
00:31:13,520 --> 00:31:16,320
Speaker 1: plan until you've reached that stage. Some parents feel the

704
00:31:16,360 --> 00:31:19,720
Speaker 1: pressure right to do it sooner to their own detriment.

705
00:31:19,840 --> 00:31:22,880
Speaker 1: And it's we talk about the oxygen mask and the airplane.

706
00:31:22,920 --> 00:31:24,720
Speaker 1: Put yours on before you put it on your kids.

707
00:31:24,760 --> 00:31:26,560
Speaker 1: That's the same thing. Get your own finances in order,

708
00:31:26,600 --> 00:31:29,400
Speaker 1: and then eventually you can start saving for your kids

709
00:31:29,440 --> 00:31:32,440
Speaker 1: on their behalf. The only exception, again sorry, just because

710
00:31:32,440 --> 00:31:34,160
Speaker 1: of all the nuance of five twenty nine is you

711
00:31:34,200 --> 00:31:36,280
Speaker 1: want to like start the account with a little bit

712
00:31:36,320 --> 00:31:38,640
Speaker 1: of money because there's like timelines that get rolling, so

713
00:31:39,000 --> 00:31:43,080
Speaker 1: don't forget that. But we just rather see you, Xavier

714
00:31:43,200 --> 00:31:46,240
Speaker 1: and other listeners crush all your own money goals first

715
00:31:46,280 --> 00:31:49,320
Speaker 1: before really working on behalf of your children. But like

716
00:31:49,400 --> 00:31:51,600
Speaker 1: Matt said, and like we've talked about here, the Trump

717
00:31:51,600 --> 00:31:54,320
Speaker 1: accounts are awesome in terms of free money and hopefully

718
00:31:54,840 --> 00:31:58,000
Speaker 1: prodding people into thinking more about investing for the future,

719
00:31:58,360 --> 00:32:01,640
Speaker 1: but not so great in terms so utilizing that count

720
00:32:01,720 --> 00:32:05,160
Speaker 1: to do more than beyond what you're able to do

721
00:32:05,280 --> 00:32:05,560
Speaker 1: for free.

722
00:32:05,760 --> 00:32:07,800
Speaker 2: I totally agree. All right, we got more to get

723
00:32:07,800 --> 00:32:10,040
Speaker 2: to Joel. Let's hear from a listener who grew up

724
00:32:10,120 --> 00:32:13,760
Speaker 2: listening to some bum financial advice. Let's hear her question.

725
00:32:14,240 --> 00:32:17,600
Speaker 5: Hello, Joel and Matt. My name is Grace. I'm twenty

726
00:32:17,640 --> 00:32:20,480
Speaker 5: eight years old and I live in Shoreline, Washington, which

727
00:32:20,640 --> 00:32:23,640
Speaker 5: is just north of Seattle Proper. I found your podcast

728
00:32:23,680 --> 00:32:25,720
Speaker 5: a couple months ago and have really been enjoying it.

729
00:32:25,920 --> 00:32:28,800
Speaker 5: I grew up listening to my parents played David Ramsey's

730
00:32:28,800 --> 00:32:30,640
Speaker 5: show in the car, so it's fun for me to

731
00:32:30,760 --> 00:32:33,000
Speaker 5: now have my own version of that As an adult.

732
00:32:33,360 --> 00:32:35,320
Speaker 5: I'm learning a lot from you both, and I'm taking

733
00:32:35,360 --> 00:32:37,800
Speaker 5: more of an interest in my own personal finance journey.

734
00:32:38,080 --> 00:32:40,880
Speaker 5: So thank you for doing what you do. I feel

735
00:32:40,880 --> 00:32:44,000
Speaker 5: like I'm pretty financially responsible. I don't have any debt,

736
00:32:44,400 --> 00:32:47,440
Speaker 5: I have an emergency fund, I get my employer for

737
00:32:47,640 --> 00:32:50,960
Speaker 5: a one K match, and I've fully funded my roth

738
00:32:51,040 --> 00:32:53,920
Speaker 5: IRA for the last four or five years. I've stayed

739
00:32:53,920 --> 00:32:56,200
Speaker 5: away from credit cards for most of my life because

740
00:32:56,320 --> 00:32:58,560
Speaker 5: I mainly heard about the ways they can mess up

741
00:32:58,600 --> 00:33:01,680
Speaker 5: your life. But I trust myself to be responsible with

742
00:33:01,760 --> 00:33:03,920
Speaker 5: a credit card and have decided that I'm willing to

743
00:33:04,000 --> 00:33:05,880
Speaker 5: play the game a little bit so that I can

744
00:33:05,920 --> 00:33:09,320
Speaker 5: get mileage rewards and other credit card perks because I'm

745
00:33:09,360 --> 00:33:13,280
Speaker 5: starting to want to travel. I recently applied for a

746
00:33:13,400 --> 00:33:17,720
Speaker 5: Southwest Airlines Visa Platinum account through Chase and I was

747
00:33:17,840 --> 00:33:23,160
Speaker 5: not approved. I was initially pretty surprised and frustrated. The

748
00:33:23,240 --> 00:33:25,680
Speaker 5: reason that they listed for not approving me was that

749
00:33:25,800 --> 00:33:31,040
Speaker 5: I have too few accounts on consumer credit file reported recently.

750
00:33:31,840 --> 00:33:33,960
Speaker 5: I did some research and it sounds like I have

751
00:33:34,160 --> 00:33:38,000
Speaker 5: a thin file or not enough credit history to be approved.

752
00:33:38,520 --> 00:33:41,200
Speaker 5: In hindsight, I'm not completely surprised that I wasn't approved.

753
00:33:41,600 --> 00:33:44,040
Speaker 5: I've had a credit card before, but have been using

754
00:33:44,120 --> 00:33:47,280
Speaker 5: debit for basically all of my adult life. I'm curious

755
00:33:47,320 --> 00:33:49,920
Speaker 5: if you two have some suggestions for cards that would

756
00:33:50,040 --> 00:33:52,160
Speaker 5: likely approve me so that I can so that I

757
00:33:52,200 --> 00:33:55,960
Speaker 5: can start building credit. Maybe there's one that even has

758
00:33:56,000 --> 00:33:59,800
Speaker 5: a little bit of rewards. I'm worried that my rejection

759
00:34:00,000 --> 00:34:02,080
Speaker 5: and hurt my score, and I don't want to hurt

760
00:34:02,120 --> 00:34:05,400
Speaker 5: it further by applying for too many other cards. I'm

761
00:34:05,480 --> 00:34:08,120
Speaker 5: also curious if you have any idea how long I

762
00:34:08,280 --> 00:34:11,240
Speaker 5: need to use my starter card before I can reapply

763
00:34:11,880 --> 00:34:13,320
Speaker 5: to a card with better rewards.

764
00:34:13,600 --> 00:34:16,400
Speaker 2: Thank you so much. You're right. I think she did

765
00:34:16,440 --> 00:34:18,080
Speaker 2: say David David Ramsey.

766
00:34:18,200 --> 00:34:20,319
Speaker 1: That's how we should refer to him from here on out.

767
00:34:20,560 --> 00:34:22,000
Speaker 2: I love that. Did she do that intentionally?

768
00:34:22,120 --> 00:34:24,040
Speaker 1: I don't know, but it's it's awesome. I like, I

769
00:34:24,200 --> 00:34:24,880
Speaker 1: totally love that.

770
00:34:25,200 --> 00:34:26,640
Speaker 2: It's just a way for us to kind of do

771
00:34:26,719 --> 00:34:28,200
Speaker 2: we know his middle name, and then you could jab

772
00:34:28,280 --> 00:34:29,719
Speaker 2: him a little bit and we can refer to him

773
00:34:29,760 --> 00:34:30,160
Speaker 2: like he's.

774
00:34:30,000 --> 00:34:32,120
Speaker 1: In trouble, Like you know, your mom uses your middle name.

775
00:34:32,239 --> 00:34:38,000
Speaker 2: Anytime we invoke David whatever Ramsey's name, he knows. Yeah,

776
00:34:38,200 --> 00:34:38,680
Speaker 2: he feels it.

777
00:34:38,840 --> 00:34:41,040
Speaker 1: That's right. I feel like it feels the burning tremor

778
00:34:41,239 --> 00:34:44,560
Speaker 1: in his ears. Well, Matt, of course, one of the

779
00:34:44,600 --> 00:34:47,239
Speaker 1: things she talked about at the very beginning. I think

780
00:34:47,280 --> 00:34:49,000
Speaker 1: I just want to highlight this for a quick second.

781
00:34:49,239 --> 00:34:52,280
Speaker 1: The goal of how the money is to translate timeless

782
00:34:52,320 --> 00:34:55,440
Speaker 1: concepts for the next generation. It's not like you and

783
00:34:55,520 --> 00:34:57,920
Speaker 1: I are spitting out brand new stuff that's never been

784
00:34:57,960 --> 00:35:00,880
Speaker 1: said before. But that's what humans do, right. We translate

785
00:35:00,960 --> 00:35:04,960
Speaker 1: stuff constantly. We're updating for the way humans speak and think.

786
00:35:05,080 --> 00:35:08,239
Speaker 1: And operate now. It's a reason I guess people still

787
00:35:08,320 --> 00:35:10,680
Speaker 1: read the King James version of the Bible, but there

788
00:35:10,680 --> 00:35:13,080
Speaker 1: have been new translations to that right, and like people

789
00:35:13,120 --> 00:35:15,839
Speaker 1: are like, I like that Eugene Peterson version better now,

790
00:35:16,000 --> 00:35:19,560
Speaker 1: or we're always just updating the way we speak and

791
00:35:19,640 --> 00:35:22,920
Speaker 1: think about things and to to go. Not that Dave

792
00:35:22,960 --> 00:35:25,759
Speaker 1: Ramsey's so old school that you can't understand what he's saying.

793
00:35:26,160 --> 00:35:27,960
Speaker 1: But the gold had of money is to be that

794
00:35:28,080 --> 00:35:30,319
Speaker 1: for millennials and gen z ers these days.

795
00:35:30,600 --> 00:35:32,759
Speaker 2: Yeah, I think that's why he's trying to bring in

796
00:35:32,840 --> 00:35:35,480
Speaker 2: some young younger folks as well to continue the legacy.

797
00:35:35,880 --> 00:35:38,480
Speaker 2: But two le guys, joeln matter here, we stole the

798
00:35:38,520 --> 00:35:43,399
Speaker 2: crown grace. I mean all like we're obviously making fun,

799
00:35:43,480 --> 00:35:46,840
Speaker 2: but like I will one hundred percent give full credit

800
00:35:47,040 --> 00:35:52,280
Speaker 2: to David Ramsey for yeah, sparking my interest. In addition

801
00:35:52,400 --> 00:35:56,160
Speaker 2: to compounding returns, literally, it was at a Dave Ramsey

802
00:35:56,200 --> 00:35:58,879
Speaker 2: event that I saw the compounding returns tart that caused

803
00:35:58,920 --> 00:36:00,799
Speaker 2: me to realize it was the chart where it's said

804
00:36:00,840 --> 00:36:03,360
Speaker 2: that someone who invests in max maxes out there rothra

805
00:36:03,480 --> 00:36:06,600
Speaker 2: between ages seventeen and twenty five versus someone who starts

806
00:36:06,680 --> 00:36:11,560
Speaker 2: investing at like age twenty five until they retire or something.

807
00:36:11,600 --> 00:36:14,440
Speaker 2: We'll never be able to catch the person who invested

808
00:36:14,640 --> 00:36:15,960
Speaker 2: for just seven years and stops.

809
00:36:16,000 --> 00:36:16,720
Speaker 1: And that's enlightening.

810
00:36:17,000 --> 00:36:19,600
Speaker 2: Which that was one of the things that blew my mind.

811
00:36:19,640 --> 00:36:22,040
Speaker 2: So maybe that's why I got all excited about the

812
00:36:23,320 --> 00:36:24,839
Speaker 2: the Trump accountess dot gov.

813
00:36:25,080 --> 00:36:27,719
Speaker 1: I talk trash lightly in jest, but Dave, Dave's done

814
00:36:27,719 --> 00:36:28,920
Speaker 1: a lot of great works. He's done a lot of

815
00:36:29,040 --> 00:36:32,200
Speaker 1: David excuse me, get it right, man, Grace. It sounds

816
00:36:32,239 --> 00:36:34,719
Speaker 1: like you are doing an awesome job. And it makes

817
00:36:34,719 --> 00:36:36,920
Speaker 1: sense because again, you you learn a whole lot from

818
00:36:37,040 --> 00:36:39,200
Speaker 1: David Ramsey as you're growing up. But I do love

819
00:36:39,320 --> 00:36:41,600
Speaker 1: that you're wanting to enter into the credit card phase

820
00:36:41,640 --> 00:36:45,399
Speaker 1: of your life. It's the credit cards era for Grace Joel,

821
00:36:45,880 --> 00:36:47,920
Speaker 1: because she handles things to nineteen eighty nine era from

822
00:36:47,920 --> 00:36:49,400
Speaker 1: Taylor's exactly. That's what I was referring.

823
00:36:49,440 --> 00:36:52,640
Speaker 2: Okay, you've been really responsible and so I'm not worried

824
00:36:52,640 --> 00:36:55,200
Speaker 2: about you being able to handle your credit card properly.

825
00:36:55,360 --> 00:36:58,320
Speaker 2: Just follow the golden rules of plastic. You're gonna be

826
00:36:58,400 --> 00:36:58,840
Speaker 2: just fine.

827
00:36:59,040 --> 00:36:59,160
Speaker 4: Right.

828
00:36:59,280 --> 00:37:02,279
Speaker 2: That means not caring a balance. And by the way,

829
00:37:02,920 --> 00:37:04,840
Speaker 2: This is the very reason that we want people to

830
00:37:04,880 --> 00:37:08,239
Speaker 2: handle their cards responsibly, because figuring this out now is

831
00:37:08,280 --> 00:37:09,560
Speaker 2: going to ensure that you're going to build up a

832
00:37:09,560 --> 00:37:12,000
Speaker 2: healthy credit score, which you're going to need in your

833
00:37:12,040 --> 00:37:15,040
Speaker 2: life moving forward. It's just kind of ironic that the

834
00:37:15,160 --> 00:37:18,000
Speaker 2: thing that got you in this super healthy position to

835
00:37:18,080 --> 00:37:21,080
Speaker 2: begin with is the same thing that's keeping you from

836
00:37:21,080 --> 00:37:23,000
Speaker 2: being able to take advantage of some of the.

837
00:37:23,000 --> 00:37:25,040
Speaker 1: Different perks and rewards out there. And this might be

838
00:37:25,200 --> 00:37:29,600
Speaker 1: the biggest juxtaposition or complete the place where we diverge

839
00:37:29,640 --> 00:37:31,520
Speaker 1: the most. It is from all David Rams. It is

840
00:37:31,600 --> 00:37:35,839
Speaker 1: the spot and they try to talk about and tell

841
00:37:35,920 --> 00:37:39,080
Speaker 1: people how they can get by in life without a credit.

842
00:37:38,840 --> 00:37:44,000
Speaker 2: Score, and you can. It's just getting harder and hard possible.

843
00:37:44,239 --> 00:37:46,600
Speaker 1: Yeah, but my goodness, you're fighting an uphill battle, and

844
00:37:46,840 --> 00:37:48,560
Speaker 1: I just don't want to be pushing a bolder uphill,

845
00:37:48,840 --> 00:37:50,680
Speaker 1: which is what you're doing if you're trying to live

846
00:37:50,719 --> 00:37:54,520
Speaker 1: in modern you know, American society not caring about your

847
00:37:54,560 --> 00:37:58,520
Speaker 1: credit score, and Grace is seeing the effects of that firsthand, right,

848
00:37:58,600 --> 00:38:02,040
Speaker 1: And the truth is, it's not all that difficult to

849
00:38:02,719 --> 00:38:06,600
Speaker 1: play the game, play the system without overdoing it and

850
00:38:06,880 --> 00:38:10,239
Speaker 1: harming your personal finances. Yeah, something like forty six percent

851
00:38:10,280 --> 00:38:13,920
Speaker 1: of Americans carry a credit card balance. They're not playing

852
00:38:14,000 --> 00:38:16,560
Speaker 1: the game properly. But if you listen to how the

853
00:38:16,640 --> 00:38:18,960
Speaker 1: money and like you follow our advice, you can have

854
00:38:19,160 --> 00:38:21,319
Speaker 1: the best of both worlds with like, yeah, a little

855
00:38:21,360 --> 00:38:24,319
Speaker 1: bit access to credit cards, use them wisely, and then

856
00:38:24,600 --> 00:38:27,600
Speaker 1: have a solid credit score so that you're not hampered

857
00:38:27,640 --> 00:38:29,799
Speaker 1: when you're trying to make other moves. Let's talk about

858
00:38:29,800 --> 00:38:32,160
Speaker 1: the thin file thing. It's in particular matter like that

859
00:38:32,280 --> 00:38:34,759
Speaker 1: Grace mentioned. It's just what it sounds like, right, it's

860
00:38:35,080 --> 00:38:38,040
Speaker 1: the credit bureaus. The old school analogy would be that

861
00:38:38,120 --> 00:38:40,839
Speaker 1: there's a Manila envelope on the desk and it's got

862
00:38:40,880 --> 00:38:43,399
Speaker 1: two pieces of paper in it, and there's just nothing,

863
00:38:43,480 --> 00:38:46,400
Speaker 1: not much for them to go on because you have

864
00:38:47,239 --> 00:38:51,040
Speaker 1: almost no documented usage of credit for them to be

865
00:38:51,080 --> 00:38:52,040
Speaker 1: able to sign a score to you.

866
00:38:52,600 --> 00:38:56,960
Speaker 2: So they don't look at your or your resume, right,

867
00:38:57,200 --> 00:38:58,800
Speaker 2: they're not looking at all the great things that you

868
00:38:58,880 --> 00:38:59,120
Speaker 2: did in.

869
00:38:59,200 --> 00:39:02,480
Speaker 1: Hulu now worth or exactly. Hey, guess what you maxed

870
00:39:02,480 --> 00:39:04,640
Speaker 1: out your roth higher over the last five years. Obviously

871
00:39:04,680 --> 00:39:06,680
Speaker 1: you handle money well, great, They don't care about that.

872
00:39:06,760 --> 00:39:09,160
Speaker 1: That's not what they look at They look at how

873
00:39:09,280 --> 00:39:11,520
Speaker 1: you use debt products, and if you have too few

874
00:39:11,640 --> 00:39:16,040
Speaker 1: active accounts or an incredibly short credit history, you get

875
00:39:16,120 --> 00:39:18,799
Speaker 1: put into the thin file. Status doesn't mean you're bad,

876
00:39:19,080 --> 00:39:21,479
Speaker 1: It just means from the credit bureau perspective, that data

877
00:39:21,560 --> 00:39:25,399
Speaker 1: is insufficient and that you're an unpredictable bar war because

878
00:39:25,440 --> 00:39:28,520
Speaker 1: of that, because they have so little information. What's actually

879
00:39:29,760 --> 00:39:32,600
Speaker 1: a decent thing for you, which is not having tons

880
00:39:32,600 --> 00:39:35,960
Speaker 1: of credit your disposal, not using credit in an unwise way,

881
00:39:37,040 --> 00:39:39,879
Speaker 1: not many having many debt products right that you've taken out.

882
00:39:40,200 --> 00:39:41,920
Speaker 1: It's a bad thing for your credit score, and so

883
00:39:42,440 --> 00:39:44,080
Speaker 1: it's time to remedy that in a smart way.

884
00:39:43,960 --> 00:39:46,239
Speaker 2: Which then impacts other things your ability to get a

885
00:39:46,280 --> 00:39:49,560
Speaker 2: competitive rate, if you're looking to buy a home, utilities,

886
00:39:49,600 --> 00:39:51,880
Speaker 2: renting a you know, just it comes back in multiple

887
00:39:51,920 --> 00:39:55,680
Speaker 2: different ways to essentially harm you financially. But what of

888
00:39:55,719 --> 00:40:00,399
Speaker 2: the ways that you can create a thicker file, to say,

889
00:40:00,719 --> 00:40:03,279
Speaker 2: your parents who may or may not have a credit

890
00:40:03,320 --> 00:40:05,600
Speaker 2: card because of the fact that they listen to David Ramsey.

891
00:40:06,080 --> 00:40:08,160
Speaker 2: But if they do have a credit card, and if

892
00:40:08,160 --> 00:40:10,000
Speaker 2: they do handle it well, they could add you as

893
00:40:10,040 --> 00:40:12,400
Speaker 2: an authorized user. That's something we've talked about on the

894
00:40:12,400 --> 00:40:15,040
Speaker 2: show before. I've got four kids, all for them are

895
00:40:15,040 --> 00:40:17,880
Speaker 2: authorized users on one of my cards, and so that

896
00:40:18,280 --> 00:40:19,759
Speaker 2: history is going to go back really far.

897
00:40:19,960 --> 00:40:20,120
Speaker 5: Yep.

898
00:40:20,280 --> 00:40:25,160
Speaker 2: I'm not trying to completely ensure that they never experience

899
00:40:25,200 --> 00:40:26,960
Speaker 2: any sort of hardship, but I'm like, here's one thing

900
00:40:27,040 --> 00:40:29,640
Speaker 2: that I can do that doesn't cost me anything.

901
00:40:30,040 --> 00:40:31,000
Speaker 1: Started off on the right, Phoe.

902
00:40:31,120 --> 00:40:32,800
Speaker 2: Yeah, So that's something that you can do. But the

903
00:40:32,880 --> 00:40:37,640
Speaker 2: other major way is by going with a secured credit card. Essentially,

904
00:40:37,680 --> 00:40:40,000
Speaker 2: these are like credit builder credit cards is another name,

905
00:40:40,040 --> 00:40:43,960
Speaker 2: but basically you put down a refundable deposit with this

906
00:40:44,520 --> 00:40:47,160
Speaker 2: bank and that becomes your credit limit essentially, and so

907
00:40:47,280 --> 00:40:50,160
Speaker 2: then you use that card just like you normally would.

908
00:40:50,719 --> 00:40:53,880
Speaker 2: I would use it sparingly in order to avoid using

909
00:40:54,200 --> 00:40:57,240
Speaker 2: a large percentage of your overall credit limit that's available

910
00:40:57,280 --> 00:40:59,640
Speaker 2: to you. But you do that in a sort of

911
00:40:59,760 --> 00:41:02,240
Speaker 2: self funded attempt in order to build your credit score.

912
00:41:02,840 --> 00:41:04,520
Speaker 2: You can check with the local credit union a lot

913
00:41:04,560 --> 00:41:08,400
Speaker 2: of times they're offered there, but discover they have a

914
00:41:08,440 --> 00:41:11,839
Speaker 2: great secured card that actually has this auto graduation built

915
00:41:11,920 --> 00:41:15,520
Speaker 2: in where they auto graduate you to a full fledged

916
00:41:15,680 --> 00:41:18,480
Speaker 2: credit card after seven to twelve months of use of

917
00:41:19,120 --> 00:41:22,480
Speaker 2: responsible use. I actually saw another article that mentioned that

918
00:41:22,680 --> 00:41:25,960
Speaker 2: even within six months of handling that well, you could

919
00:41:26,000 --> 00:41:29,879
Speaker 2: apply for the unsecured version of that card, so look

920
00:41:29,920 --> 00:41:31,960
Speaker 2: into that. Discover has always set themselves up as a

921
00:41:32,160 --> 00:41:36,239
Speaker 2: very beginner friendly credit card company, and in fact, I

922
00:41:36,280 --> 00:41:38,480
Speaker 2: think they were my first credit card that I had

923
00:41:38,520 --> 00:41:39,279
Speaker 2: way back in the day.

924
00:41:40,160 --> 00:41:42,880
Speaker 1: And I'm pretty sure this card, this Discover card that

925
00:41:42,920 --> 00:41:45,399
Speaker 1: you mentioned, the Discovered It card comes with rewards too.

926
00:41:45,480 --> 00:41:47,279
Speaker 1: Grace mentioned that, hey, I'd like to learn something like

927
00:41:47,320 --> 00:41:49,239
Speaker 1: while I'm using this credit card. Yeah, and I think

928
00:41:49,239 --> 00:41:51,320
Speaker 1: it's the secure card of the only secured cards that

929
00:41:51,400 --> 00:41:52,120
Speaker 1: comes with rewards.

930
00:41:52,120 --> 00:41:53,640
Speaker 2: I want to say, it's like one and a half percent,

931
00:41:54,120 --> 00:41:56,520
Speaker 2: and so you do have to be down money that

932
00:41:56,640 --> 00:41:59,320
Speaker 2: you then get back once you get to get to graduate.

933
00:41:59,400 --> 00:42:02,200
Speaker 2: So there are other secured cards that don't have benefits.

934
00:42:02,280 --> 00:42:04,400
Speaker 2: So maybe that's what you're highlighting here. So Capital one

935
00:42:04,440 --> 00:42:08,680
Speaker 2: they've actually got the Capital one Platinum card. But you

936
00:42:08,800 --> 00:42:11,279
Speaker 2: might be here and I say, and think sounds fancy. Sorry, guys,

937
00:42:11,280 --> 00:42:13,120
Speaker 2: I don't think I'm quite rich yet ready for the

938
00:42:13,160 --> 00:42:16,120
Speaker 2: Platinum card. No, this is a this is a beginner's

939
00:42:16,320 --> 00:42:18,319
Speaker 2: credit card as well. This is for folks who don't

940
00:42:18,360 --> 00:42:21,520
Speaker 2: have credit scores or who have really rough credit scores,

941
00:42:22,200 --> 00:42:24,560
Speaker 2: And this is a card that you don't have to

942
00:42:24,600 --> 00:42:27,000
Speaker 2: put any money down, which is really attractive. And actually,

943
00:42:27,040 --> 00:42:29,360
Speaker 2: and you're talking about how you're not sure if you

944
00:42:29,440 --> 00:42:31,719
Speaker 2: would get approved for that one, you can go to

945
00:42:31,800 --> 00:42:34,600
Speaker 2: the site and enter in information and without doing a

946
00:42:34,680 --> 00:42:36,960
Speaker 2: hard credit check, they'll let you know. So that'll save

947
00:42:36,960 --> 00:42:39,200
Speaker 2: you some time and maybe some heartache on the actual

948
00:42:39,200 --> 00:42:41,759
Speaker 2: credit score front as well. So it's and there are

949
00:42:41,800 --> 00:42:44,680
Speaker 2: no rewards associated with that particular card. So there's a

950
00:42:44,719 --> 00:42:47,040
Speaker 2: couple options out there for you on the on the

951
00:42:47,080 --> 00:42:47,959
Speaker 2: beginner credit card.

952
00:42:47,920 --> 00:42:50,239
Speaker 1: For both of those are solid options. To Discover card

953
00:42:50,640 --> 00:42:52,680
Speaker 1: might be a touch better if you're like looking to

954
00:42:52,800 --> 00:42:56,400
Speaker 1: earn rewards as well. But and I think this is

955
00:42:56,440 --> 00:42:58,239
Speaker 1: a problem that can be solved within six to twelve

956
00:42:58,239 --> 00:43:01,120
Speaker 1: months time, right, This is not something where you're in

957
00:43:01,280 --> 00:43:05,520
Speaker 1: purgatory for years to come, credit score purgatory because you

958
00:43:05,640 --> 00:43:08,520
Speaker 1: haven't you know, built up or taken on any any

959
00:43:08,600 --> 00:43:10,840
Speaker 1: debt in the past, and and and so grace, you

960
00:43:10,920 --> 00:43:12,399
Speaker 1: should be able to fix this pretty quickly.

961
00:43:12,560 --> 00:43:15,279
Speaker 2: Oh, I just thought of something else. Yeah, Capitol one

962
00:43:15,400 --> 00:43:19,000
Speaker 2: Card does a Discover card. They charge foreign transaction fees. Right.

963
00:43:19,400 --> 00:43:20,520
Speaker 1: Oh, that's that's a good question.

964
00:43:20,520 --> 00:43:22,200
Speaker 2: I think they do capital one doesn't, and so that's

965
00:43:22,239 --> 00:43:25,520
Speaker 2: another soft benefit. And with her being up there in

966
00:43:26,760 --> 00:43:29,440
Speaker 2: she said Shoreline, And of course, Joel, I look this

967
00:43:29,600 --> 00:43:31,480
Speaker 2: up because I'm like, well, I need to figure out

968
00:43:31,520 --> 00:43:33,200
Speaker 2: where Shortletine. Oh, it looks like Shoreline is on the

969
00:43:33,239 --> 00:43:35,200
Speaker 2: Puget Sound. Looks like a wonderful place to live. Oh

970
00:43:35,239 --> 00:43:37,680
Speaker 2: my gosh. Yeah, which it is. By the way, it's

971
00:43:38,120 --> 00:43:40,080
Speaker 2: suburb north of the city, not only where we live,

972
00:43:40,160 --> 00:43:42,279
Speaker 2: so the cost cost of living is a little bit lower,

973
00:43:42,600 --> 00:43:44,680
Speaker 2: specifically when it comes to housing. But I don't know.

974
00:43:44,800 --> 00:43:46,760
Speaker 2: Maybe she hops across the border heads up to Vancouver.

975
00:43:47,320 --> 00:43:48,280
Speaker 2: Have you ever been to Vancouver.

976
00:43:48,400 --> 00:43:49,560
Speaker 1: I've never been a Vancous either.

977
00:43:49,600 --> 00:43:52,239
Speaker 2: I'm gonna go there sometime. But that would save you

978
00:43:52,320 --> 00:43:54,239
Speaker 2: from having to to deal with some of those foreign

979
00:43:54,239 --> 00:43:57,240
Speaker 2: transaction fees on your on your next trip across the border.

980
00:43:58,320 --> 00:43:59,960
Speaker 2: Just some something else to think about some of the

981
00:44:00,239 --> 00:44:02,799
Speaker 2: other additional benefits that come with the different cards out there.

982
00:44:02,960 --> 00:44:05,640
Speaker 1: Last thing I wanted to mention too was a company

983
00:44:05,680 --> 00:44:09,360
Speaker 1: called self It used to be called self Lender, and

984
00:44:09,480 --> 00:44:13,279
Speaker 1: basically it's another way of putting down money, creating a

985
00:44:13,480 --> 00:44:17,720
Speaker 1: debt product where you're paying yourself back and self collects

986
00:44:17,800 --> 00:44:21,279
Speaker 1: a small fee every single month, and it's basically just

987
00:44:21,400 --> 00:44:23,879
Speaker 1: in an effort to help you build a better credit score. Yeah,

988
00:44:24,400 --> 00:44:26,480
Speaker 1: I think you can just do the secured credit card

989
00:44:26,520 --> 00:44:28,600
Speaker 1: approach and you'll be just fine if you want to

990
00:44:28,719 --> 00:44:30,120
Speaker 1: like double down and you're.

991
00:44:30,000 --> 00:44:31,439
Speaker 2: Super keen supercharging.

992
00:44:31,520 --> 00:44:34,440
Speaker 1: Yeah, because self says, oh, you can increase your score

993
00:44:34,560 --> 00:44:37,759
Speaker 1: by dozens of points, by thirty forty fifty points by

994
00:44:37,840 --> 00:44:40,000
Speaker 1: doing this that in addition to a secured card, you

995
00:44:40,040 --> 00:44:42,400
Speaker 1: might be able to create a robust score for yourself

996
00:44:42,480 --> 00:44:44,640
Speaker 1: even more quickly. But that's just going to cost a

997
00:44:44,719 --> 00:44:46,799
Speaker 1: little bit of money. It might be worth it though,

998
00:44:46,920 --> 00:44:49,840
Speaker 1: right because the goal is to get more reported behavior.

999
00:44:50,320 --> 00:44:52,680
Speaker 1: You're doing the stuff the bureaus want to see. You're

1000
00:44:52,680 --> 00:44:55,120
Speaker 1: getting in their good graces. Again, it's a weird game,

1001
00:44:55,320 --> 00:44:57,960
Speaker 1: but we think it's a necessary one. Some say, opt

1002
00:44:58,000 --> 00:45:01,040
Speaker 1: out of the game completely, our friend David, but we

1003
00:45:01,360 --> 00:45:03,680
Speaker 1: would say, no, we don't. We don't think it makes

1004
00:45:03,680 --> 00:45:05,320
Speaker 1: sense to to opt out of the game and just

1005
00:45:05,440 --> 00:45:10,000
Speaker 1: these quick small moves and using these as this new

1006
00:45:10,000 --> 00:45:12,759
Speaker 1: access to credit. Wisely, you're gonna be just fine.

1007
00:45:12,760 --> 00:45:14,480
Speaker 2: Grace. That's right. I think one of the advantages of

1008
00:45:14,560 --> 00:45:16,960
Speaker 2: self as well is the fact that it's not a

1009
00:45:17,640 --> 00:45:20,680
Speaker 2: revolving credit line that you're paying down for, it's installment.

1010
00:45:20,800 --> 00:45:22,359
Speaker 2: And so that's one of the things that goes into

1011
00:45:22,560 --> 00:45:25,279
Speaker 2: creating a robust credit score is having two types. You

1012
00:45:25,320 --> 00:45:27,120
Speaker 2: got the revolving credit line, but then you've also got

1013
00:45:27,200 --> 00:45:30,480
Speaker 2: the installment loans, and so I it makes sense why

1014
00:45:30,680 --> 00:45:33,400
Speaker 2: self can say you're actually gonna do much better for

1015
00:45:33,560 --> 00:45:36,000
Speaker 2: you to also join up over here, because it's not

1016
00:45:36,400 --> 00:45:38,319
Speaker 2: most of the time when you are thinking about installment loans,

1017
00:45:38,320 --> 00:45:40,360
Speaker 2: it's a car loan, it's a mortgage. And so the

1018
00:45:40,440 --> 00:45:43,200
Speaker 2: ability to ability for a beginner, someone who's trying to

1019
00:45:43,200 --> 00:45:47,239
Speaker 2: get their credit score essentially off the ground, it's kind

1020
00:45:47,239 --> 00:45:49,400
Speaker 2: of rare to be able to enter into an installment

1021
00:45:49,440 --> 00:45:50,920
Speaker 2: loan like and if you that's where self steps. And

1022
00:45:51,000 --> 00:45:52,759
Speaker 2: if you take the hod of money approach to buying

1023
00:45:52,800 --> 00:45:56,000
Speaker 2: cars and you're a ways off from buying a home,

1024
00:45:56,600 --> 00:45:58,239
Speaker 2: you could be a long ways off from having any

1025
00:45:58,320 --> 00:46:00,719
Speaker 2: sort of installment loan, that's right. Yeah, So having that

1026
00:46:00,840 --> 00:46:03,359
Speaker 2: self loan, having some sort of installment loan on your

1027
00:46:03,400 --> 00:46:06,719
Speaker 2: credit history could help improve and boost your score too,

1028
00:46:06,960 --> 00:46:08,320
Speaker 2: or we got a couple more questions to get to

1029
00:46:08,320 --> 00:46:11,239
Speaker 2: you mout, including let's talk about buying cars. Where do

1030
00:46:11,320 --> 00:46:13,000
Speaker 2: you actually find cars from real humans?

1031
00:46:13,040 --> 00:46:14,800
Speaker 1: We'll talk about that and more right after this.

1032
00:46:22,600 --> 00:46:25,319
Speaker 2: All right, Budy, let's keep this money trained rolling. We've

1033
00:46:25,360 --> 00:46:28,440
Speaker 2: got the Facebook question of the week, which is from Ezra.

1034
00:46:28,960 --> 00:46:31,680
Speaker 2: Remember Ezra. Uh huh. This is Ezra with an S

1035
00:46:32,080 --> 00:46:34,080
Speaker 2: that you pronounce it like a ze, not Eesra.

1036
00:46:34,520 --> 00:46:37,880
Speaker 1: I'm gonna pronounce it however, I like you say, yeah.

1037
00:46:37,800 --> 00:46:41,319
Speaker 2: You be you man, Ezra road. Where have y'all had

1038
00:46:41,400 --> 00:46:44,400
Speaker 2: the best luck with finding used cars from private sellers?

1039
00:46:44,840 --> 00:46:48,279
Speaker 2: Facebook Marketplace? Joel, have you purchased a car off of

1040
00:46:48,320 --> 00:46:49,640
Speaker 2: Facebook Marketplace before?

1041
00:46:50,080 --> 00:46:50,120
Speaker 5: So?

1042
00:46:50,239 --> 00:46:52,960
Speaker 1: I've looked at cars I found on Facebook Marketplace. I

1043
00:46:53,960 --> 00:46:56,160
Speaker 1: do not think I've ever purchased a car that I

1044
00:46:56,239 --> 00:46:59,560
Speaker 1: found on Facebook Marketplace, though, ye, I'm trying to think back,

1045
00:46:59,680 --> 00:47:01,319
Speaker 1: I don't. I don't think so. The last place.

1046
00:47:01,360 --> 00:47:03,160
Speaker 2: I've only purchased one car in the past ten years,

1047
00:47:03,360 --> 00:47:05,560
Speaker 2: and it wasn't on Facebook yet before then. I don't

1048
00:47:05,560 --> 00:47:08,399
Speaker 2: think Facebook marketplace exists. It barely existed. Yeah, but maybe

1049
00:47:08,440 --> 00:47:09,080
Speaker 2: it did, but maybe not.

1050
00:47:09,200 --> 00:47:11,839
Speaker 1: The motors sure or at least it wasn't in Uh,

1051
00:47:12,440 --> 00:47:15,600
Speaker 1: Craigslist was still kind of up there, rivaling Facebook marketplace

1052
00:47:15,640 --> 00:47:15,920
Speaker 1: back then.

1053
00:47:16,000 --> 00:47:19,480
Speaker 2: Yeah, last car anymore was private was we listed ourselves

1054
00:47:19,480 --> 00:47:21,520
Speaker 2: and I listed it on Craigslist. Yea, I remember that.

1055
00:47:21,960 --> 00:47:23,560
Speaker 1: Yeah, that used to be the place. And now I

1056
00:47:23,760 --> 00:47:27,160
Speaker 1: just don't even think to check check Craigslist anymore. It's crazy.

1057
00:47:27,239 --> 00:47:30,360
Speaker 1: Caush was groundbreaking when it launched because it upended the

1058
00:47:31,200 --> 00:47:34,640
Speaker 1: the correct the ads in the newspaper, which is people like, huh,

1059
00:47:34,680 --> 00:47:35,439
Speaker 1: what are you talking about?

1060
00:47:35,480 --> 00:47:39,239
Speaker 2: That used to be a newspapers and it was. It

1061
00:47:39,320 --> 00:47:41,279
Speaker 2: was huge. I had I had a folder on my

1062
00:47:41,360 --> 00:47:45,000
Speaker 2: computer back in the day that was literally labeled Craigslist

1063
00:47:45,160 --> 00:47:46,560
Speaker 2: and it was a file that had all the different

1064
00:47:46,600 --> 00:47:48,520
Speaker 2: pictures and listenings that I had created. I don't know

1065
00:47:48,600 --> 00:47:50,480
Speaker 2: why I kept it out, but I mean, I'll show

1066
00:47:50,520 --> 00:47:53,120
Speaker 2: it to you after we finished recording. I'm such a nerd.

1067
00:47:53,120 --> 00:47:55,080
Speaker 1: You should like delete that now, I guess so, But

1068
00:47:55,400 --> 00:47:55,680
Speaker 1: I don't know.

1069
00:47:55,760 --> 00:47:57,520
Speaker 2: There's something about seeing like our old stuff.

1070
00:47:57,760 --> 00:47:59,560
Speaker 1: Yeah, nostalgic.

1071
00:47:59,560 --> 00:48:02,640
Speaker 2: We've talked to about photos is keeping up with pictures

1072
00:48:02,680 --> 00:48:04,640
Speaker 2: recently here on the show. This Yeah, one of the

1073
00:48:04,719 --> 00:48:07,760
Speaker 2: ways that I'm weird and to hang on this stuff

1074
00:48:07,760 --> 00:48:10,480
Speaker 2: like that. There's so many ways that's true. Okay, So

1075
00:48:10,840 --> 00:48:13,319
Speaker 2: in twenty twenty six, it is so hard to do this, Matt,

1076
00:48:13,680 --> 00:48:17,800
Speaker 2: I have found this out too, trying to buy cars

1077
00:48:17,840 --> 00:48:20,719
Speaker 2: from humans, and I don't know why, like, should that

1078
00:48:20,840 --> 00:48:23,200
Speaker 2: be a massive priority for me? It is, and so

1079
00:48:23,280 --> 00:48:26,279
Speaker 2: I love that ESRA is trying to do that. It's

1080
00:48:26,280 --> 00:48:29,120
Speaker 2: trying to buy that car from a human. The resale

1081
00:48:29,160 --> 00:48:31,080
Speaker 2: sites have just soaked up so much of the market share.

1082
00:48:31,120 --> 00:48:35,799
Speaker 2: Talking about Carbona, Carmacks Yep, yep. And it's not bad

1083
00:48:35,840 --> 00:48:37,520
Speaker 2: to turn to those places in fact, like they have

1084
00:48:37,680 --> 00:48:40,560
Speaker 2: decent Like, oh, I guess you want a week or

1085
00:48:40,640 --> 00:48:42,120
Speaker 2: thirty days or something like that to take this car

1086
00:48:42,160 --> 00:48:44,279
Speaker 2: back because you don't like it. It's pretty great.

1087
00:48:44,360 --> 00:48:47,400
Speaker 1: Carbana and Carmacks provide that. But still you're paying more

1088
00:48:47,480 --> 00:48:50,560
Speaker 1: money typically than you would buying directly from the private

1089
00:48:50,640 --> 00:48:53,719
Speaker 1: seller themselves. And I still feel more comfortable buying from

1090
00:48:53,719 --> 00:48:55,320
Speaker 1: an individual, Matt. I don't know why. I don't know

1091
00:48:55,360 --> 00:48:57,080
Speaker 1: if it's like old school or if it's just that

1092
00:48:57,200 --> 00:48:59,279
Speaker 1: person that part of me that wants to get a

1093
00:48:59,400 --> 00:49:01,840
Speaker 1: good deal and find something that's well taken care of,

1094
00:49:01,920 --> 00:49:05,320
Speaker 1: finding something that's like outside of the norm in a

1095
00:49:05,360 --> 00:49:07,400
Speaker 1: good way where Yep, I'm getting more bank from my

1096
00:49:07,440 --> 00:49:09,080
Speaker 1: bad And I think that's what you get when you

1097
00:49:09,120 --> 00:49:11,480
Speaker 1: buy from a private a private seller, Like I think

1098
00:49:11,680 --> 00:49:14,560
Speaker 1: if if you take the time, like if you're really intent,

1099
00:49:14,640 --> 00:49:16,920
Speaker 1: because there's a lot of a lot of listings on

1100
00:49:16,960 --> 00:49:18,319
Speaker 1: Facebook marketplace that are subpar too.

1101
00:49:18,400 --> 00:49:21,280
Speaker 2: Yeah, yeah, there's there's sketchy well, I mean, there's brokers.

1102
00:49:21,280 --> 00:49:23,200
Speaker 2: There's folks who are sell like different little companies that

1103
00:49:23,280 --> 00:49:25,520
Speaker 2: are trying to portray themselves as individuals. But there's also

1104
00:49:25,600 --> 00:49:27,200
Speaker 2: individuals who are just selling a car that may not

1105
00:49:27,280 --> 00:49:29,840
Speaker 2: be all that great. You Yeah, I mean I can't remember,

1106
00:49:29,880 --> 00:49:31,400
Speaker 2: like you didn't y'all didn't have the best luck with

1107
00:49:31,480 --> 00:49:33,359
Speaker 2: one one car that you purchased a long time ago,

1108
00:49:33,400 --> 00:49:34,840
Speaker 2: didn't you have Like y'all had a super roof for

1109
00:49:34,960 --> 00:49:36,640
Speaker 2: that's right? Was that private sale?

1110
00:49:36,719 --> 00:49:39,280
Speaker 1: That was a private sale and that was not its purchase.

1111
00:49:39,360 --> 00:49:41,799
Speaker 2: So like there's I mean, there's like there's really good

1112
00:49:41,800 --> 00:49:43,640
Speaker 2: deals to be had, but then sometimes there's vehicles that

1113
00:49:43,800 --> 00:49:45,719
Speaker 2: maybe are like oh dang it, like maybe this one

1114
00:49:45,800 --> 00:49:47,759
Speaker 2: isn't this wasn't a great one. But I think that's

1115
00:49:47,840 --> 00:49:50,719
Speaker 2: why these like the car vana's out there tend to

1116
00:49:51,160 --> 00:49:53,560
Speaker 2: be I don't know, I feel like that they're serving

1117
00:49:54,000 --> 00:49:56,439
Speaker 2: an audience because you're not gonna get the best deal.

1118
00:49:57,000 --> 00:49:59,960
Speaker 2: But generally speaking, it's like all of the cars pass

1119
00:50:00,120 --> 00:50:02,759
Speaker 2: a certain sort of whatever checklist that they say, you know,

1120
00:50:02,800 --> 00:50:05,759
Speaker 2: they're really clean when you get them, which is I

1121
00:50:05,800 --> 00:50:07,120
Speaker 2: don't know. That shouldn't be a reason why you buy

1122
00:50:07,120 --> 00:50:08,800
Speaker 2: a car that is really clean because you can you

1123
00:50:08,880 --> 00:50:11,560
Speaker 2: can drop fifty bucks and have it detailed at some

1124
00:50:11,640 --> 00:50:13,319
Speaker 2: local car when they make it easy, right, like make

1125
00:50:13,360 --> 00:50:15,160
Speaker 2: it super easy, drop it off at your doorstep, that

1126
00:50:15,239 --> 00:50:17,560
Speaker 2: kind of stuff. But I get the I get the

1127
00:50:17,640 --> 00:50:19,640
Speaker 2: desire though, to want to find a vehicle that like

1128
00:50:19,719 --> 00:50:22,359
Speaker 2: we're I mean, well your last purchase, and like didn't

1129
00:50:22,360 --> 00:50:25,040
Speaker 2: the guy have like every he had service he had

1130
00:50:25,360 --> 00:50:26,600
Speaker 2: directly from the dealers shop.

1131
00:50:26,400 --> 00:50:28,640
Speaker 1: Talking about Manila envelopes that are stuff full of stuff.

1132
00:50:28,640 --> 00:50:30,640
Speaker 1: I mean, is it a pin file? No, it was

1133
00:50:30,680 --> 00:50:33,680
Speaker 1: a thick file right, And and he just had records

1134
00:50:33,760 --> 00:50:36,600
Speaker 1: for everything he'd ever done, so incredibly transfor is what

1135
00:50:36,719 --> 00:50:37,400
Speaker 1: you want right there?

1136
00:50:37,480 --> 00:50:37,600
Speaker 4: Man.

1137
00:50:37,760 --> 00:50:39,600
Speaker 1: It wasn't like oh you just vacuum miss out and

1138
00:50:39,600 --> 00:50:41,120
Speaker 1: put it and took it through the car wash. It

1139
00:50:41,320 --> 00:50:43,680
Speaker 1: was oh, you've taken care of that. You babied this baby,

1140
00:50:43,760 --> 00:50:46,680
Speaker 1: this car and so. So the place I found that

1141
00:50:46,800 --> 00:50:51,080
Speaker 1: car was auto Trader, and nice it. Typically it costs

1142
00:50:51,160 --> 00:50:53,360
Speaker 1: I forget how much, maybe sixty or seventy dollars to

1143
00:50:53,440 --> 00:50:56,360
Speaker 1: list a car for sale as a private owner on

1144
00:50:56,880 --> 00:50:59,320
Speaker 1: auto Trader, but I have found and there's a button

1145
00:50:59,360 --> 00:51:01,200
Speaker 1: that you click the very bottom when you do a search,

1146
00:51:01,280 --> 00:51:05,200
Speaker 1: like if you're searching for particular maker, model specifically to

1147
00:51:05,400 --> 00:51:09,040
Speaker 1: get private sellers only. And there's still ads that pop

1148
00:51:09,120 --> 00:51:10,520
Speaker 1: up in there and stuff as well, so be sure

1149
00:51:10,560 --> 00:51:12,839
Speaker 1: to bounce through those. But you can find people who

1150
00:51:12,880 --> 00:51:14,759
Speaker 1: are only selling the make or the make and model

1151
00:51:14,800 --> 00:51:18,359
Speaker 1: card that you want, who are legit private sellers through

1152
00:51:18,400 --> 00:51:21,160
Speaker 1: auto Trader. You as the consumer, you're not paying any money.

1153
00:51:21,440 --> 00:51:24,000
Speaker 1: But I think, to me, like the pickings are slim.

1154
00:51:24,360 --> 00:51:26,200
Speaker 1: It's like something like one percent of the listings on

1155
00:51:26,280 --> 00:51:28,919
Speaker 1: auto Trader are actually listed by private sellers. But still

1156
00:51:29,560 --> 00:51:31,399
Speaker 1: filter it by that way. That's way you're only looking

1157
00:51:31,440 --> 00:51:33,680
Speaker 1: at the listings you want to see. And to me,

1158
00:51:33,840 --> 00:51:35,319
Speaker 1: that's how I've had the most luck in the past

1159
00:51:35,320 --> 00:51:35,719
Speaker 1: few years.

1160
00:51:35,760 --> 00:51:38,160
Speaker 2: It's like it's a higher barrier to entry, right the

1161
00:51:38,239 --> 00:51:39,879
Speaker 2: fact that they have to pay as opposed to being

1162
00:51:39,880 --> 00:51:41,480
Speaker 2: able to list it for free. So you probably have

1163
00:51:41,560 --> 00:51:44,560
Speaker 2: to weigh through more junk on Facebook Marketplace, and there's

1164
00:51:44,600 --> 00:51:47,040
Speaker 2: fewer options, maybe on Auto Trader, but I'm guessing the

1165
00:51:47,080 --> 00:51:48,160
Speaker 2: caliber of the listing is.

1166
00:51:48,160 --> 00:51:50,640
Speaker 1: Going to be much much higher. They're regardless of where

1167
00:51:50,680 --> 00:51:52,080
Speaker 1: it is that you're going to get it though.

1168
00:51:52,000 --> 00:51:54,160
Speaker 2: Take it to a mechanic, yes, so whether you're talking

1169
00:51:54,200 --> 00:51:56,680
Speaker 2: private sale or if you're going with one of the

1170
00:51:56,719 --> 00:51:59,640
Speaker 2: big sites, because obviously if you got somebody who maybe

1171
00:51:59,640 --> 00:52:02,360
Speaker 2: didn't who did just do the vacuum thing, snapped a

1172
00:52:02,400 --> 00:52:04,560
Speaker 2: couple of pictures listed it and it's actually in terrible shape,

1173
00:52:04,600 --> 00:52:08,080
Speaker 2: you might run across those. But also so the vehicle

1174
00:52:08,120 --> 00:52:11,239
Speaker 2: that we still have, our Honda Odyssey, I purchased on

1175
00:52:11,360 --> 00:52:15,360
Speaker 2: Carvana back in twenty sixteen, and I took it to

1176
00:52:15,680 --> 00:52:19,879
Speaker 2: a Honda Slash Accurate specific mechanic, someone who is known

1177
00:52:20,280 --> 00:52:23,040
Speaker 2: across the city for being just excellent. And what they

1178
00:52:23,080 --> 00:52:26,359
Speaker 2: discovered was that this Honda Odyssey needed a new timing belt.

1179
00:52:26,719 --> 00:52:28,920
Speaker 2: And this is within the window of time that I

1180
00:52:28,960 --> 00:52:30,920
Speaker 2: could return it to Carvana. And I said, hey, this

1181
00:52:31,080 --> 00:52:33,320
Speaker 2: is what they say. They here's the rite up and

1182
00:52:33,719 --> 00:52:37,320
Speaker 2: Carvana straight up paid to have that timing belt replaced,

1183
00:52:37,360 --> 00:52:40,360
Speaker 2: and so that for me the kind of built in

1184
00:52:40,480 --> 00:52:44,399
Speaker 2: warranty period of time. That was great. That was time

1185
00:52:44,440 --> 00:52:46,880
Speaker 2: to do your due Diligenhi. Oh my goodness, that was fantastic.

1186
00:52:46,920 --> 00:52:50,120
Speaker 2: And otherwise the van checked out just fine. So regardless,

1187
00:52:50,160 --> 00:52:54,440
Speaker 2: there are diamonds in the rough, but also just rough diamonds.

1188
00:52:54,480 --> 00:52:57,239
Speaker 2: I guess. I don't know whether it's private sale or

1189
00:52:57,560 --> 00:53:01,920
Speaker 2: with the Abert Specifi some of the big some of

1190
00:53:01,960 --> 00:53:04,040
Speaker 2: the big sites. So yeah, either way, make sure to

1191
00:53:04,360 --> 00:53:06,600
Speaker 2: take it to a trusted mechanic. Yep, all right.

1192
00:53:06,840 --> 00:53:09,240
Speaker 1: This next question comes from Maria. She says, I recently

1193
00:53:09,280 --> 00:53:12,320
Speaker 1: applied for a debt relief program. I was feeling desperate

1194
00:53:12,400 --> 00:53:15,359
Speaker 1: as I found myself in debt. However, after reading more

1195
00:53:15,360 --> 00:53:17,920
Speaker 1: about this program, I learned there's a lawsuit against this

1196
00:53:18,040 --> 00:53:21,560
Speaker 1: company and clients have reported being left in worse financial

1197
00:53:21,640 --> 00:53:25,240
Speaker 1: hardship than before. Oh yikes, she says, I'm feeling very anxious.

1198
00:53:25,280 --> 00:53:27,360
Speaker 1: I'm not sure I can mention the name of this company.

1199
00:53:27,800 --> 00:53:31,000
Speaker 1: Wanted to hear if anyone has used them, or if

1200
00:53:31,120 --> 00:53:32,640
Speaker 1: you have any knowledge about companies like this.

1201
00:53:33,080 --> 00:53:36,400
Speaker 2: Yeah, Maria, I'm not sure. What company that you're using,

1202
00:53:36,560 --> 00:53:39,480
Speaker 2: but I would highly recommend to run away, and I

1203
00:53:40,080 --> 00:53:42,960
Speaker 2: hope you haven't signed a contract where you've entered into

1204
00:53:43,080 --> 00:53:45,280
Speaker 2: any work. Actually, even if you have signed a contract

1205
00:53:45,280 --> 00:53:47,640
Speaker 2: with them, you have the right to cancel if they

1206
00:53:47,719 --> 00:53:50,759
Speaker 2: haven't performed any services that they have outlined that they're

1207
00:53:50,800 --> 00:53:53,600
Speaker 2: gonna that they're planning to do. So I guess given

1208
00:53:53,640 --> 00:53:55,799
Speaker 2: what you're saying here, it sounds like you're you might

1209
00:53:55,880 --> 00:53:58,160
Speaker 2: be in the early stages of working with them. Maybe

1210
00:53:58,160 --> 00:54:00,600
Speaker 2: you haven't set up a specific account for them to

1211
00:54:00,800 --> 00:54:03,040
Speaker 2: use or for them to to help you out with.

1212
00:54:03,320 --> 00:54:05,319
Speaker 2: So I think now is the time to get out

1213
00:54:05,360 --> 00:54:09,080
Speaker 2: of this relationship because the vast majority, regardless of who

1214
00:54:09,120 --> 00:54:11,560
Speaker 2: you are actually with like all of these for profit

1215
00:54:11,840 --> 00:54:13,520
Speaker 2: I don't want to say all of them, but the vast,

1216
00:54:13,640 --> 00:54:17,520
Speaker 2: vast majority of these for profit debt relief organizations are

1217
00:54:17,960 --> 00:54:21,920
Speaker 2: not straight up scams, but seriously under deliver. Let's just

1218
00:54:21,920 --> 00:54:22,160
Speaker 2: say that.

1219
00:54:22,360 --> 00:54:25,000
Speaker 1: Yeah, yeah, yeah, And even the ones that are decent

1220
00:54:25,080 --> 00:54:28,239
Speaker 1: at what they do, they still just aren't as good

1221
00:54:28,400 --> 00:54:31,800
Speaker 1: as the not for profit debt relief companies, which is

1222
00:54:32,640 --> 00:54:33,040
Speaker 1: the way to go.

1223
00:54:33,239 --> 00:54:33,680
Speaker 2: Yeah, yeah.

1224
00:54:33,840 --> 00:54:37,720
Speaker 1: Those are Money Management International, the National Foundation for Credit counseling.

1225
00:54:37,760 --> 00:54:39,680
Speaker 1: Those are two of the places you should check out

1226
00:54:39,760 --> 00:54:43,800
Speaker 1: money management dot org, NFCC dot org and the advice

1227
00:54:43,920 --> 00:54:46,000
Speaker 1: they offer it's going to be more well aligned with

1228
00:54:46,080 --> 00:54:48,640
Speaker 1: your needs. The fees are lower than you to encounter

1229
00:54:48,760 --> 00:54:51,239
Speaker 1: with the for profit companies. They might even be able

1230
00:54:51,280 --> 00:54:53,160
Speaker 1: to help you, by the way, reduce your balance or

1231
00:54:53,200 --> 00:54:55,239
Speaker 1: the interest rate that's attached to your debt if you

1232
00:54:55,440 --> 00:54:59,759
Speaker 1: enter into a debt management plan. I think it's well

1233
00:54:59,760 --> 00:55:02,040
Speaker 1: where looking into those agencies to see what they can

1234
00:55:02,120 --> 00:55:06,320
Speaker 1: provide for you. And it's man, don't ever pay a

1235
00:55:06,360 --> 00:55:11,040
Speaker 1: company money upfront. Not for profit debt relief companies or

1236
00:55:11,120 --> 00:55:14,279
Speaker 1: debt debt advice agencies are just a much better way

1237
00:55:14,320 --> 00:55:16,600
Speaker 1: to go. So sorry, sorry, these people are freaking you out,

1238
00:55:16,640 --> 00:55:19,040
Speaker 1: but it sounds like you still have time to wriggle

1239
00:55:19,120 --> 00:55:22,080
Speaker 1: free of the hook and and move on and find

1240
00:55:22,440 --> 00:55:23,320
Speaker 1: better help elsewhere.

1241
00:55:23,760 --> 00:55:26,280
Speaker 2: That's right. Let's quickly get back to the beer Joel

1242
00:55:26,360 --> 00:55:28,440
Speaker 2: that you and I enjoyed during this episode, which was

1243
00:55:28,560 --> 00:55:33,560
Speaker 2: a wavelength IPA from Equilibrium, which is actually out of

1244
00:55:33,600 --> 00:55:36,840
Speaker 2: New York Middleton, Okay, middle or Middletown, I don't know,

1245
00:55:37,000 --> 00:55:39,239
Speaker 2: but uh yeah, what'd you think? I thought? This was nice.

1246
00:55:39,320 --> 00:55:42,560
Speaker 1: It was right had lemony vibes. Oh yeah, I was

1247
00:55:42,719 --> 00:55:46,680
Speaker 1: definitely getting a lot of like hops that like, I

1248
00:55:46,719 --> 00:55:48,719
Speaker 1: don't know, lemony vibe hops is what is what I'm

1249
00:55:48,719 --> 00:55:52,440
Speaker 1: gonna go with, right, Like nice kind of citrus, bright citrus,

1250
00:55:53,200 --> 00:55:55,480
Speaker 1: going on, flavors going on in this one. Well sweet, Yeah,

1251
00:55:55,640 --> 00:55:56,120
Speaker 1: I enjoyed it.

1252
00:55:56,239 --> 00:56:00,400
Speaker 2: It made me think of like the like green peas,

1253
00:56:01,200 --> 00:56:05,640
Speaker 2: which makes is typically what I think like lemons, which

1254
00:56:05,719 --> 00:56:07,520
Speaker 2: is what I think of when when I uh, when

1255
00:56:07,560 --> 00:56:12,520
Speaker 2: I enjoy a burial beer or another green hobby flavored

1256
00:56:13,200 --> 00:56:16,239
Speaker 2: New England. I p a maker other Half where they

1257
00:56:16,360 --> 00:56:18,839
Speaker 2: name all their beers after like broccoli or collar its

1258
00:56:18,960 --> 00:56:20,880
Speaker 2: or you know, different names like that. So it doesn't

1259
00:56:20,880 --> 00:56:22,480
Speaker 2: surprise me that that these guys are also out of

1260
00:56:22,520 --> 00:56:24,320
Speaker 2: New York. But yeah, just really good. It's been a

1261
00:56:24,360 --> 00:56:26,920
Speaker 2: minute since we've had a great New England hazy and

1262
00:56:27,160 --> 00:56:28,640
Speaker 2: I'm glad, you know, I got to share it during

1263
00:56:28,680 --> 00:56:29,319
Speaker 2: our episode today.

1264
00:56:29,320 --> 00:56:31,560
Speaker 1: But it's delicious, very nice. Yep, club, you got to

1265
00:56:31,560 --> 00:56:32,920
Speaker 1: do it too, all right, that's gonna do it for

1266
00:56:33,000 --> 00:56:35,319
Speaker 1: this episode. Just go to how to money dot com

1267
00:56:35,400 --> 00:56:37,200
Speaker 1: if you haven't been there, where.

1268
00:56:37,040 --> 00:56:37,640
Speaker 2: All the stuff is.

1269
00:56:37,800 --> 00:56:40,040
Speaker 1: We got an interesting new article actually a couple one

1270
00:56:40,080 --> 00:56:42,640
Speaker 1: on coast fire that's that's really great written by one

1271
00:56:42,680 --> 00:56:45,840
Speaker 1: of friends by Pam. Yeah, and a long form article

1272
00:56:46,000 --> 00:56:50,320
Speaker 1: about using artificial intelligence employing it properly in your personal finances.

1273
00:56:50,400 --> 00:56:53,160
Speaker 1: So check that stuff out and sign up for many

1274
00:56:53,280 --> 00:56:55,680
Speaker 1: newsletter while you're there, and uh, that's gonna do it though.

1275
00:56:55,719 --> 00:56:58,640
Speaker 1: Until next time, Best friends Out, Best Friends Out,