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Speaker 1: Welcome to Out of Money. I'm Joel, I'm Matt, and

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

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Speaker 2: Happy Monday, everybody. We're gonna hear from several listeners who

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Speaker 2: had financial questions Joel. For instance, a listeners wondering about

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Speaker 2: the necessity of a credit card, whether or not it's

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Speaker 2: something you gotta have, like you gotta have it or

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Speaker 2: is it more optional?

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Speaker 1: Sounds like like a Checkers commercial. I gotta have it?

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Speaker 1: Is that a Checker's commercial? There was something like that,

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Speaker 1: Like as I was saying I got to eat something,

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Speaker 1: it felt like where's the where's the beef? Gotta have it?

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Speaker 2: Must eat now.

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Speaker 1: Another listener is asking about paying for a career shift.

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Speaker 2: Uh, he doesn't have a midlife crisis, but he's in

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Speaker 2: fact focusing maybe on a career that's going to provide

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Speaker 2: a little more fulfillments. And another listener is asking about

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Speaker 2: dropping car insurance or not like fully dropping car insurance,

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Speaker 2: but dropping the fuller more comprehensive. Oh there you go,

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Speaker 2: comprehensive in collision, specifically types of insurance, whether or not

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Speaker 2: they're in the financial position to pull that off. The

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Speaker 2: reason ask the question is because the money savings can

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Speaker 2: be huge, but the trade offs are meaningful to yep,

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Speaker 2: talking about that and more that's the important part. And more,

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Speaker 2: who knows what we're going to talk about?

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Speaker 1: So much more we keep go in so many directions

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Speaker 1: just I don't know, bucklet your seat belts, kids, stay

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Speaker 1: along for the ride. Matt quick tip that a listener

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Speaker 1: Katie sent in, by the way, before we get to

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Speaker 1: those questions that I wanted to mention. She basically said, Hey,

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Speaker 1: there were a few kind of crummy trees in the

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Speaker 1: neighborhood that needed to come down, and I had I

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Speaker 1: think she had one or two trees in her yard

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Speaker 1: that had to come down too, and so she pulled resources,

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Speaker 1: which I think is so brilliant and so underutilized. I

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Speaker 1: have thought about this. I like it, Like with how

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Speaker 1: like different yard services are coming to like all my

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Speaker 1: neighbors around me, I'm like, what if we just do that?

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Speaker 2: Is so yeah yeah, So basically you're saying, like you're

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Speaker 2: asking around, these are services where someone has to come

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Speaker 2: out physically, and so it makes sense to get like

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Speaker 2: a group discount, as what if you're talking about creating

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Speaker 2: your like your own neighbor based group on right of.

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Speaker 1: Dis exactly is what you're saying exactly, Because isn't half

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Speaker 1: the problem as someone who mows lawns, the fact that

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Speaker 1: you have to drive to every lawn you have to do,

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Speaker 1: And what if you could do six back to back

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Speaker 1: to back to back to back and not have to travel.

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Speaker 1: That sounds brilliant And maybe you'd will be willing to

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Speaker 1: offer like a ten, fifteen, maybe even a twenty percent

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Speaker 1: discount because of all that time that's saved. You just

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Speaker 1: you're just mowing the laws man, You're not You're not

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Speaker 1: moving around to get to the lawns.

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Speaker 2: So you know, it's mind boggling.

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Speaker 1: And the same thing with trees, which Katie was bringing

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Speaker 1: our attention. So Katie, thank you. I just think it's

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Speaker 1: worth it.

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Speaker 3: Yeah.

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Speaker 2: As neighbors just being like, hey, what if we also

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Speaker 2: get this neighbor over here on board? What kind of

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Speaker 2: deal are you willing to offer us? What I was

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Speaker 2: gonna say is mind boggling. Is we live in a

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Speaker 2: neighborhood that isn't that big, and I know that there

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Speaker 2: is a teenager in this neighbor in my neighborhood who

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Speaker 2: has his own law service. He's got a pickup truck.

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Speaker 2: He's got a trailer, and I see I'm leaving the neighborhood.

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Speaker 1: Has he ever come to your door? No?

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Speaker 2: No, he's not stuck anything out. And so maybe the

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Speaker 2: otis is on me. Maybe I need to reach out

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Speaker 2: to him proactively and just say, hey, man, like you

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Speaker 2: could even sell that trailer.

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Speaker 1: Yeah, you literally drive.

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Speaker 2: Your riding lawmore from one house to the next to

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Speaker 2: the next and just end up doing the whole neighborhood.

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Speaker 1: I would do if I was him, I would go

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Speaker 1: so much more. If I would go knock on every

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Speaker 1: door and I would say how much are you paying

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Speaker 1: for your lawn service every month? And then if I

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Speaker 1: don't know whatever, they say, oh we're paying two hundred

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Speaker 1: and twenty dollars. Great, you know what, I on to

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Speaker 1: knock fifteen percent off that, here's my rate for the month,

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Speaker 1: and let me start doing it like clockwork. I think

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Speaker 1: that may make so much sense. Think about how many

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Speaker 1: doors he could get, like he could he could be

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Speaker 1: the richest high schooler.

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Speaker 2: In the whole city, and again keeping things lean and efficient,

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Speaker 2: Like I would love the idea that he would be

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Speaker 2: able to ditch the trailer and spending more time actually

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Speaker 2: cutting lawns.

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Speaker 1: As opposed to you know, driving around town. I'm about

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Speaker 1: that efficiency. It sounds like Katie was able to do

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Speaker 1: it with a tree crew, So more Matt props to you, Katie.

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Speaker 1: I love it. I also of the beer.

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Speaker 2: There's my beer review already that you and I are

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Speaker 2: going to enjoy during this episode, which is called a

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Speaker 2: Guillotine of Contemplation. That's right, This is a beer by

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Speaker 2: burial guillotine like eighteenth century France.

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Speaker 1: Yeah, yeah, that's what that's literally in the name of

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Speaker 1: this beer. We'll give our thoughts on this one.

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Speaker 2: I'm so happy that you were able to head up

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Speaker 2: there and pick up some of these fantastic beers.

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Speaker 1: One of the best brederies in the country, straight from

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Speaker 1: the source, no doubt. All right, Matt. For folks out

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Speaker 1: there listening, if they want to submit a question, how

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Speaker 1: do they do it? Do you want to let them know?

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Speaker 1: They just record a.

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Speaker 2: Voice memo on their phones and email it to us

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Speaker 2: at how Toomoney Pod at gmail dot com. Please state

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Speaker 2: your name. It's always fun because we've got one today

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Speaker 2: where he doesn't say his name, so we're.

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Speaker 1: Gonna have to say it for him. It's always more fun.

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Speaker 2: Yeah, I know and say where you're from as well,

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Speaker 2: because I like to look up what's going on in

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Speaker 2: your town.

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Speaker 1: We have to give like full address, but maybe just

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Speaker 1: the city or the stuff.

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Speaker 2: I think this context context helps and it helps me

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Speaker 2: to understand what they're going through.

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Speaker 1: I don't know that's.

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Speaker 2: We're not dish, not generic answers. I mean, to a

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Speaker 2: certain extent, some financial drews withstand geography, Joel, but it

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Speaker 2: can be helpful sometimes.

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Speaker 1: For sure, personally. Okay, Matt, what if the question is

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Speaker 1: a little weird or offbeat? Do we want to hear

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Speaker 1: those two? Those are even better, man, Please please send

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Speaker 1: them in all R. Let's get to a question now, Matt.

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Speaker 1: This one specifically is about credit cards, whether they're necessary.

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Speaker 3: Hi, Joel and Matt. My name is Ben. My question

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Speaker 3: for you is do you need a credit card to

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Speaker 3: get through life? And can they be used to help

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Speaker 3: you save money. I'm now thirty years old. I've never

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Speaker 3: had a credit card before, but I have a decent

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Speaker 3: credit score built up over the years. I haven't always

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Speaker 3: had a good relationship with money, but listening to your

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Speaker 3: podcast has definitely helped me to begin improving my financial

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Speaker 3: health and my relationship with money. For example, I've taken

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Speaker 3: on board your advice about building an emergency fund and

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Speaker 3: biking to work instead of driving. Interested to hear your

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Speaker 3: thoughts on whether a credit card is needed and whether

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Speaker 3: they can be used to help you save money. Thanks, Joel.

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Speaker 2: Did you hear that how Ben's bike into work? Now?

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Speaker 1: I can get behind that. I love it, man, Like

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Speaker 1: both of our bikes are in here today. We literally Yeah,

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Speaker 1: I walk like you often, don't bike into the to

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Speaker 1: the office, to the clubhouse here all that often. But

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Speaker 1: I ride my bike less, although I take my son

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Speaker 1: to school on the e bike every day. And I

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Speaker 1: guess I just I prefer the slightly long. I mean,

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Speaker 1: we have a mile long commute, so the bike it

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Speaker 1: takes me four minutes, and walking it takes me fifteen.

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Speaker 1: I just kind of like that fifteen minutes worth of decompression.

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Speaker 2: Oh I get that. Yeah, it depends on what you're

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Speaker 2: trying to accomplish during that period of time. But biking,

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Speaker 2: what I love about it is it's the perfect habit

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Speaker 2: that then allows you to do some of the things Ben,

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Speaker 2: that you're looking to do, like build up an emergency fund,

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Speaker 2: right like you Okay, it's been a minute since we've

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Speaker 2: talked about bikes and how great biking is for you.

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Speaker 2: It's like the perfect atomic habit. Which so that's the

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Speaker 2: book I've been I'm rereading that. It's been a minute

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Speaker 2: a few years since I've read that one. But you've

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Speaker 2: got the short term reward of being active and moving

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Speaker 2: your body, and you're feeling healthy and you're in a

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Speaker 2: better mood. So that's like the near term what you

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Speaker 2: need to sustain you, like in the day to day

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Speaker 2: sort of thing. But then you also have like the

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Speaker 2: long term positive consequences of biking into work. If that's

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Speaker 2: something that you're able to do, the financial health related

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Speaker 2: and financial the financial savings, like the benefits that you're

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Speaker 2: going to be able to accrue not only save up

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Speaker 2: an emergency fund, perhaps even downsize your automobile fleet, maybe

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Speaker 2: even completely cutting a car from your life. Maybe you're

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Speaker 2: paying off debt, maybe you are investing more aggressively, all

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Speaker 2: because you have implemented a new habit in your life.

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Speaker 1: If your biking habit gets that extreme where you can

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Speaker 1: knock a car out of your life, I mean, it's

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Speaker 1: amazing how much money you can save. Yeah, and Matt

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Speaker 1: you're I realized that it takes a lot of intentionality

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Speaker 1: for people to do that. You've been doing. You've done

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Speaker 1: that for I don't know, fifteen years, I don't know,

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Speaker 1: seventy yeah, seventeen something. It's crazy and most people say, well,

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Speaker 1: it's basically impossible in modern society.

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Speaker 2: You got to be crazy to want to do this.

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Speaker 1: Yeah, but then a lot of people end up having

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Speaker 1: like three or four cars in their house. Definitely overkill.

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Speaker 1: It's possible to get by on less. And when you

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Speaker 1: actually factor in, well, how much does this actually cost me,

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Speaker 1: especially with what's happened with insurance rates for car owners

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Speaker 1: these days, it could be a lot. So Ben, just yeah,

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Speaker 1: keep going, man, and keep making it happen, because that

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Speaker 1: is not a small move that you're making. It really

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Speaker 1: is big. Let's talk about credit cards, because I mean,

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Speaker 1: if you want us to give you the bare bones answer,

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Speaker 1: it's basically no, you don't need a credit card in

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Speaker 1: your life, not necessarily. Yeah, if you're saying do I

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Speaker 1: have to have it? No, of course, not like there

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Speaker 1: are a lot Just like a car, you don't have

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Speaker 1: to have it. There are all sorts of things we

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Speaker 1: could go without in our lives, but we choose to

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Speaker 1: include them because they can be helpful. So we are

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Speaker 1: fans of credit cards when you use them wisely. But

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Speaker 1: the truth is only about half of the population actually

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Speaker 1: uses credit cards. Well, it's almost exactly fifty to fifty

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Speaker 1: when you look at the statistics, So many folks really

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Speaker 1: shouldn't be using credit cards at all. A massive percentage

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Speaker 1: of Americans use credit cards in ways that harm them financially,

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Speaker 1: by not paying their bills on time and in full,

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Speaker 1: and where.

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Speaker 2: They're carrying that balance.

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Speaker 1: Yeah, and then the other thing too, Matt, part of

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Speaker 1: is that, right, it's the balance, and it's the interest rates,

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Speaker 1: But then it's also that they're spending more than they

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Speaker 1: otherwise would. They're treating it like it's fake money or

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Speaker 1: something like that. And Costco is the credit card equivalent.

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Speaker 1: I go there and I spend more just because it's

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Speaker 1: available to me. That's probably true. Yeah, I'm sure some

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Speaker 1: people do.

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Speaker 2: Like portions are the new credit cardal we go on

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Speaker 2: to eat and then we end up eating all those

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Speaker 2: food because the portions are so large.

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Speaker 1: Yeah, I mean, I think there's probably probably some truth

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Speaker 1: to that. Possibly, And so when there are multiple ways

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Speaker 1: to use your credit card improper improperly, and then when

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Speaker 1: you look at the average revolving monthly balance, it's it's

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Speaker 1: ballooned up to like ten thousand dollars now, and that

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Speaker 1: is truly financially harmful for anybody who uses credit cards

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Speaker 1: in that way. I think what we've come to notice

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Speaker 1: in recent year is based on feedback we've gotten from

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Speaker 1: our younger listeners, and then the more I've kind of

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Speaker 1: seen this phenomena, I feel the same way, Matt. Younger

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Speaker 1: people seem to be treating cash the way older generations

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Speaker 1: treated credit cards, where cash feels like it's fake money.

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Speaker 1: If I've got one hundred bucks on hand, I'm gonna

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Speaker 1: blow it. Whereas the credit card, I'm logging in and

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Speaker 1: I'm seeing my statements, and I realize I'm tying that

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Speaker 1: spending on the credit card to my monthly budget and

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Speaker 1: to the money I do or don't have in my

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Speaker 1: bank account. It's where it feels like that, like fake

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Speaker 1: monopoly money, that kind of thing. So it's interesting to

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Speaker 1: see that shift. We used to say, oh, well, credit

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Speaker 1: cards for most people feel like fake money, but I

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Speaker 1: think actually the opposite is true, even more even more

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Speaker 1: so these days I guess what we would say when

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Speaker 1: it comes down to aveness is we we use credit cards,

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Speaker 1: we recommend using them well, but they're they're obviously still

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Speaker 1: not a necessity to live like a fulfilling life or

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Speaker 1: a smart financially savvy life either.

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Speaker 2: Yeah, and others in the personal finance space completely disagree

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Speaker 2: with us that credit cards can ever make sense. We

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Speaker 2: get where they're coming from, but we also think that

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Speaker 2: when you realize the potential pitfalls, if your eyes are

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Speaker 2: open to the ways that you can mismanagement, that you're

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Speaker 2: going to be far more likely to use them judiciously.

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Speaker 2: And the benefits, man, that's why they are legit. And

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Speaker 2: I'm not just talking about the rewards.

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Speaker 1: So I looked it up man.

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Speaker 2: Way back in episode one, we talked about the I

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Speaker 2: forget the name of it, but secondary tertiary credit card benefits.

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Speaker 2: We talked about fraud, liability, we talked about unauthorized charge protection,

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Speaker 2: things like that cash and debit cards don't have nearly

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Speaker 2: the same protections. But of course the cash rewards, man,

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Speaker 2: that's what kind of keeps me coming back month after

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Speaker 2: a month.

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Speaker 1: If you drop your cash, someone picks it up. Yes,

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Speaker 1: common you drop your credit card, someone spends money on it,

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Speaker 1: you're not responsible for any of the charges that were

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Speaker 1: made using that credit card. A lot's the beautiful thing,

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Speaker 1: a lot of sweet benefits. And even with debit cards

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Speaker 1: they look the exact same, Matt. But in that episode

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Speaker 1: we talked about how there's not as much legal coverage

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Speaker 1: that you have using a debit card. Or if someone

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Speaker 1: excuse me, if someone uses that debit card as if

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Speaker 1: they were you and you don't find it out in

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Speaker 1: quite enough time, you can be on the hook for

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Speaker 1: some of those charges.

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Speaker 2: Yeah, debit cards are more like guilty until proven innocent,

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Speaker 2: whereas credit cards more like innocent until proven guilt.

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Speaker 1: That's a great way to say it. Yeah, And the

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Speaker 1: culture is just that you have to pay attention, right

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Speaker 1: because using credit cards the way that you would use cash.

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Speaker 1: That's really the secret to using credit cards in a

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Speaker 1: way that's going to help you and not hurt you. Basically,

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Speaker 1: don't buy stuff you can't afford, and don't buy more

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Speaker 1: than you otherwise would always pay the bill on time

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Speaker 1: and in full. Otherwise, of course you're gonna be working

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Speaker 1: over twenty percent plus in interest to the credit card companies,

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Speaker 1: and that's a recipe for disaster, and that there were

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Speaker 1: recent stats that came out about how people are going

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Speaker 1: to pay more in interest than what their balance is

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Speaker 1: because of how little they're paying towards their credit card

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Speaker 1: bill every month. Like you ain't got to make much

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Speaker 1: money doing that. In fact, you're going in the opposite direction.

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Speaker 1: So credit cards they can be this double edged sword,

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Speaker 1: and then we want you wielding the sword, well, we

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Speaker 1: don't want you getting cut to pieces by it. I

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Speaker 1: think it's maybe we should bring in just a couple

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Speaker 1: other benefits too that are worth mentioning. There are cash

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Speaker 1: and travel awards that you can earn. Everybody knows that.

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Speaker 1: I don't know that we need to say much about that.

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Speaker 1: But having a couple of credit cards in your arsenal

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Speaker 1: two to three, and then you know, the more you

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Speaker 1: feel like you're handling them well and you know what

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Speaker 1: you're doing, you can increase that. But having even just

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Speaker 1: a couple and using them judiciously can start you on

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Speaker 1: that cycle of some of those bonuses for opening an

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Speaker 1: account and then the perpetual rewards that you get just

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Speaker 1: from using it responsibly. But then secondary benefits are I

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Speaker 1: think those are what get mentioned a whole lot less,

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Speaker 1: like using that credit card overseas and not paying a

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Speaker 1: diamond foreign transaction fees. Well, that can just make travel

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Speaker 1: so much easier. There are extra insurance products you could

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Speaker 1: get using credit cards, travel insurance or primary rental car

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Speaker 1: insurance like that's another one. Those can save you money,

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Speaker 1: like so the or cell phone protection right and other

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Speaker 1: purchase protection. Those secondary benefits of credit cards can really

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Speaker 1: add up to hundreds of dollars worth of value every

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Speaker 1: year pretty easily. I mean, think about even just some

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Speaker 1: of the airport lounges you can get into with some

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Speaker 1: of the fancier travel cards. I know, some of the

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Speaker 1: how to Money audience, they're obsessed with that. They love

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Speaker 1: that love being able to hit up the sweet lounges

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Speaker 1: before their trip. But of course I have to reiterate,

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Speaker 1: no matter how good the rewards are, they're just not

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Speaker 1: worth it if you carry a balance. And some people think, oh,

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Speaker 1: the rewards are great, and then they carry balance and

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Speaker 1: it's like, no, you just nullified all the rewards you

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Speaker 1: got because of the interest that you paid. And it

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Speaker 1: just feels like a duh thing to say. But I

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Speaker 1: think there are a lot of people out there who

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Speaker 1: think using credit cards in that way is still beneficial

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Speaker 1: to them when it's not. That's right.

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Speaker 2: And by the way, this isn't something that we mention

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Speaker 2: all that often, but you mentioned being able to pay

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Speaker 2: for things overseas. We're talking about the foreign transaction fees.

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Speaker 2: And by the way, if you go to howdomoney dot

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Speaker 2: com forward slash credit card tool, you can sort the

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Speaker 2: different credit cards that are out there by whether or

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Speaker 2: not that car charges a zero percent foreign transaction fees,

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Speaker 2: essentially whether or not you can use that card while

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Speaker 2: abroad while not paying extra.

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Speaker 1: For those different charges, So be sure to check that out.

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Speaker 2: For Ben specifically, you have said that you've never had

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Speaker 2: a credit card, but you still have a decent credit score.

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Speaker 2: One of the reasons having a credit card can be

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Speaker 2: so helpful is that responsible use can help you to

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Speaker 2: or to maintain a solid credit score. But you're also

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Speaker 2: living proof that you don't need to have a credit

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Speaker 2: card to achieve that. It sounds like you have made

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Speaker 2: a lot of progress, especially recently, which is awesome, but

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Speaker 2: you've also highlighted you're not so great money history, and

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Speaker 2: so with that in mind for you, I would tread

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Speaker 2: lightly with credit cards to begin with. For you, I

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Speaker 2: would say, like, let's go ahead and open up a

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Speaker 2: two percent cash back card across the board, use it

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Speaker 2: for a few recurring purchases perhaps, and if that goes well,

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Speaker 2: that's when I would look to open another card. Perhaps

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Speaker 2: I wouldn't like, don't head over to the point skuy

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Speaker 2: and open up a dozen different credit cards. Maybe that's

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Speaker 2: something you'll do eventually at some point down the road,

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Speaker 2: but for now, I would just start small. Get you

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Speaker 2: something like a zero annual fee card like a City

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Speaker 2: Double Cash for instance, where you're getting that two percent

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Speaker 2: no matter what, you're able to keep it super simple.

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Speaker 2: It's even something I'm considering doing as well, because I

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Speaker 2: have the very complicated credit card strategy where I have

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Speaker 2: specific credit cards for categories of spending. And that's when

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Speaker 2: my life was a little more simple. But I've maintained

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Speaker 2: that practice while my life has gotten busier and more complicated,

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Speaker 2: and I'm starting to wonder. I wonder if like the

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Speaker 2: juice is worth the squeeze anymore, something to consider, not

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Speaker 2: only for someone like Ben, but even for even a

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Speaker 2: seasoned credit card user.

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Speaker 1: Makes me think, like, if you were gonna sign up

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Speaker 1: for a race if you're like I'm gonna be a runner,

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Speaker 1: and you pick your first race as like I'm why not,

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Speaker 1: I'm gonna go do the Boston Marathon, which I think

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Speaker 1: happened like a month ago or something like that. Sorry,

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Speaker 1: that's a really bad idea. Might want to start with

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Speaker 1: like a local five k instead, right, and work your

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Speaker 1: way up. Maybe that's like you perhaps three year goal exactly,

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Speaker 1: that's your two to three year goal. So same with

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Speaker 1: credit cards, like open one and see how it goes.

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Speaker 1: Start small, like you said, a few recurring purchases. Make

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Speaker 1: it your credit card for gas or something like that

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Speaker 1: and for streaming services, and then go from there over time. Ben,

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Speaker 1: you don't need a credit card, but they could be

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Speaker 1: a benefit to your finances if you use them well

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Speaker 1: over time. All right, Matt, We've got more to get

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Speaker 1: to on this episod, including let's talk about saving money

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Speaker 1: on college and wroth accounts. We'll get to questions about

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Speaker 1: both those things right after this.

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Speaker 2: All right, buddy, we are back for the break. Let's

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Speaker 2: now hear from a listener who is looking to invest

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Speaker 2: a little bit more in himself. We're talking about higher education.

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Speaker 4: Hi, Joel him Matt, my name is Edward. I'm forty

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Speaker 4: years old. I am in a good career field when

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Speaker 4: it comes to money, but it's not giving me a

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Speaker 4: lot of job satisfaction. And I'm looking to make a

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Speaker 4: change and go back to grad school and become a

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Speaker 4: registered dietitian and help people with their health and weight,

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Speaker 4: which has going to struggle for me personally. But I'm

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Speaker 4: balking at the amount of money that it's gonna cost.

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Speaker 4: It's gonna cost about seventy three thousand dollars over the

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Speaker 4: course of two and a half years. And I was

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Speaker 4: wondering if you guys had any resource is that I

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Speaker 4: could use to.

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Speaker 1: Like grants, scholarships.

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Speaker 4: I really want to avoid student loans and I have

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Speaker 4: no interest in that. It's hoping you'd be able to

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Speaker 4: maybe point me in the right direction.

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Speaker 1: Thank you. Oh Matt, let's see what we can do

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Speaker 1: to help Edward out here. That's pay for grad school.

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Speaker 1: Is that sound familiar to you, Joel. Yeah, literally just

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Speaker 1: got done paying that joker off. And well, we never

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Speaker 1: took out a loan. We paid for it in cash

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Speaker 1: as we went. But and I don't know, I have

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Speaker 1: to look back and see exactly how much we spent

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Speaker 1: but it's a lot of money. There's a lot of

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Speaker 1: money in total. Yeah, and we're hoping for Emily's marriage

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Speaker 1: and family counseling that she went through and hopefully that

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Speaker 1: means increased lifetime earnings and really a lot of increased

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Speaker 1: job satisfaction too, which is one of the things that

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Speaker 1: Edward was alluding to here. And I think that's that's

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Speaker 1: a reason a lot of people go back and get

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Speaker 1: an advanced degree at this point in their life. I mean,

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Speaker 1: he's forty, I mean forty years old. That's that's that's

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Speaker 1: around the time people say, I feel like I know

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Speaker 1: myself a little bit better, and I know that I

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Speaker 1: want to pursue this path, but there's no way for

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Speaker 1: me to get there without getting more education. And I

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Speaker 1: love that, So I guess I love that Edward's wanting

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Speaker 1: to make a career change here. And it's a tough choice,

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Speaker 1: especially if you're making a solid salary, like those golden

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Speaker 1: handcuffs of a solid job can be difficult to cast

434
00:19:16,640 --> 00:19:20,840
Speaker 1: off if you're like if I've talked to another friend recently, Matt,

435
00:19:20,920 --> 00:19:23,520
Speaker 1: who left like a pretty high faluton career in the

436
00:19:23,600 --> 00:19:25,880
Speaker 1: energy field because he wasn't feeling fulfilled, and he makes

437
00:19:25,920 --> 00:19:28,040
Speaker 1: a heck of a lot less money now, but guess what,

438
00:19:28,280 --> 00:19:31,159
Speaker 1: he's way happier, and so I think important. There's a

439
00:19:31,160 --> 00:19:33,160
Speaker 1: lot to be said for that, right, And it sounds

440
00:19:33,160 --> 00:19:36,040
Speaker 1: like Edward really knows what he wants to do based

441
00:19:36,080 --> 00:19:38,920
Speaker 1: on his personal experience and his interests, And I just

442
00:19:38,960 --> 00:19:41,600
Speaker 1: think there's a good chance that he's gonna have greater

443
00:19:41,800 --> 00:19:45,640
Speaker 1: levels of success doing something that he loves as his

444
00:19:45,680 --> 00:19:47,800
Speaker 1: next career. So I'm excited for him. But let's try

445
00:19:47,800 --> 00:19:50,719
Speaker 1: to help him do it without forking over quite as much. Yeah, totally.

446
00:19:50,800 --> 00:19:53,520
Speaker 2: And he even said that he's not interested in the

447
00:19:53,520 --> 00:19:56,640
Speaker 2: student loans, but not everyone has the money on hand

448
00:19:56,720 --> 00:19:58,639
Speaker 2: to be able to pay for that. And I'm going

449
00:19:58,720 --> 00:20:01,280
Speaker 2: to say, like at the outset here, finding money for

450
00:20:01,400 --> 00:20:04,680
Speaker 2: grad school is harder than finding money for undergrad and

451
00:20:04,720 --> 00:20:08,439
Speaker 2: specifically universities, they make more money on graduate programs than

452
00:20:08,480 --> 00:20:12,119
Speaker 2: they do on many of their other degree offerings. So

453
00:20:12,240 --> 00:20:14,159
Speaker 2: finding those dollars to help you out it's not going

454
00:20:14,240 --> 00:20:16,560
Speaker 2: to be easy. And we're talking about a lot of

455
00:20:16,560 --> 00:20:19,439
Speaker 2: money here, seventy three thousand dollars. You are looking to

456
00:20:19,480 --> 00:20:22,560
Speaker 2: avoid student loans, we want you to avoid them. As well,

457
00:20:22,920 --> 00:20:25,920
Speaker 2: and in part because and this is for everyone else again,

458
00:20:25,960 --> 00:20:27,840
Speaker 2: not you, Edward, you are It sounds like you are set.

459
00:20:28,160 --> 00:20:30,320
Speaker 2: It makes sense too. He's he's in his is he

460
00:20:30,400 --> 00:20:32,440
Speaker 2: forty or he is in his forties, he's forty looking

461
00:20:32,440 --> 00:20:34,600
Speaker 2: to make some changes. It sounds like he's had a

462
00:20:34,600 --> 00:20:38,640
Speaker 2: fairly lucrative career. I'm guessing he's looking to cash flow

463
00:20:38,680 --> 00:20:40,200
Speaker 2: this thing. But for everyone else out there, when you're

464
00:20:40,200 --> 00:20:42,639
Speaker 2: looking at grad school, you're talking about interest rates in

465
00:20:42,680 --> 00:20:45,840
Speaker 2: the nine percent range from the federal government right now,

466
00:20:46,119 --> 00:20:49,959
Speaker 2: which is pretty scary when it comes to student loans specifically.

467
00:20:49,440 --> 00:20:51,880
Speaker 1: It's a far cry from where they were like ten

468
00:20:51,960 --> 00:20:53,280
Speaker 1: fifteen years ago to I mean.

469
00:20:53,480 --> 00:20:55,120
Speaker 2: So you might be able to get like some better

470
00:20:55,200 --> 00:20:58,320
Speaker 2: rates from private lenders, yeah, if that's something you're considering.

471
00:20:58,359 --> 00:21:00,160
Speaker 1: But yeah, which is a good point.

472
00:21:00,280 --> 00:21:04,320
Speaker 2: And this makes it a bit more nerve racking to

473
00:21:04,359 --> 00:21:06,199
Speaker 2: take out student loans for something like this.

474
00:21:06,280 --> 00:21:08,480
Speaker 1: Yeah, And there are some people who are incredibly scared

475
00:21:08,680 --> 00:21:13,120
Speaker 1: of private student loans, but I think, especially in today's environment,

476
00:21:13,280 --> 00:21:15,600
Speaker 1: private student loans might offer a better rate. And you're

477
00:21:16,040 --> 00:21:19,119
Speaker 1: the federal protections that student loan borrowers are afforded have

478
00:21:19,200 --> 00:21:23,199
Speaker 1: been kind of going away anyway, So I think I

479
00:21:23,200 --> 00:21:25,880
Speaker 1: would at least look in that direction. I would also

480
00:21:26,560 --> 00:21:29,640
Speaker 1: want to know what my likely post degree earnings would

481
00:21:29,680 --> 00:21:32,080
Speaker 1: be Edward, I think it's an important question to ask right,

482
00:21:32,760 --> 00:21:35,399
Speaker 1: ask around to people who are doing the jobs you

483
00:21:35,400 --> 00:21:37,720
Speaker 1: want to do, and not that you would opt to

484
00:21:37,720 --> 00:21:40,120
Speaker 1: not pursue this degree, because of course you've got a passion.

485
00:21:40,480 --> 00:21:42,440
Speaker 1: But I think it's you know, knowing what you stand

486
00:21:42,440 --> 00:21:45,879
Speaker 1: again by getting this degree, it's an important part of

487
00:21:45,920 --> 00:21:50,120
Speaker 1: this decision making process, and it could influence your specific

488
00:21:50,200 --> 00:21:50,960
Speaker 1: decisions here too.

489
00:21:51,240 --> 00:21:53,560
Speaker 2: I think it kind of helps to just not justify

490
00:21:53,600 --> 00:21:55,760
Speaker 2: a little bit, but it's you're able to put a

491
00:21:55,760 --> 00:21:58,000
Speaker 2: finger on Okay, I know I am giving up this

492
00:21:58,119 --> 00:21:59,840
Speaker 2: kind of salary. I know I am also going to

493
00:21:59,840 --> 00:22:01,600
Speaker 2: spa this much in order to get this degree to

494
00:22:01,960 --> 00:22:05,159
Speaker 2: hopefully put me in a position to earn what. Yeah, like,

495
00:22:05,359 --> 00:22:06,800
Speaker 2: it's good to at least be able to put your

496
00:22:06,800 --> 00:22:09,400
Speaker 2: finger then on what it is that you'll be earnings.

497
00:22:09,560 --> 00:22:11,720
Speaker 2: Like a basic math equation solve for X, yeah, and

498
00:22:11,760 --> 00:22:13,040
Speaker 2: you want to know X so that you can make

499
00:22:13,040 --> 00:22:14,919
Speaker 2: an informed decision. And it feels like a way to

500
00:22:14,960 --> 00:22:17,080
Speaker 2: potentially stem the bleeding as opposed to kind of like

501
00:22:17,119 --> 00:22:19,280
Speaker 2: this endless cycle of like, well, what's going to happen

502
00:22:19,320 --> 00:22:21,439
Speaker 2: off of the future? Who knows? You need to have

503
00:22:21,480 --> 00:22:23,800
Speaker 2: some definites out there that you can project to.

504
00:22:23,840 --> 00:22:26,719
Speaker 1: And it'll help you know how much debt you can

505
00:22:26,760 --> 00:22:30,560
Speaker 1: feel comfortable taking on, because typically, like what we advise

506
00:22:30,600 --> 00:22:33,480
Speaker 1: with an undergrad is to say, don't take out any

507
00:22:33,480 --> 00:22:36,040
Speaker 1: more than what you're likely to make in your first

508
00:22:36,160 --> 00:22:39,440
Speaker 1: year in that job. And I think it's pretty good advice, right,

509
00:22:39,640 --> 00:22:41,119
Speaker 1: And if you don't have any other debt, I think

510
00:22:41,160 --> 00:22:43,160
Speaker 1: you might be able to apply that to a master's

511
00:22:43,200 --> 00:22:44,639
Speaker 1: program as well.

512
00:22:44,680 --> 00:22:47,600
Speaker 2: But even then, like taking on lessons, well, in Edwards

513
00:22:47,680 --> 00:22:49,600
Speaker 2: case too, he's not interested in student loans. But from

514
00:22:49,600 --> 00:22:51,600
Speaker 2: an emotional standpoint, yes, I think it can just be

515
00:22:51,640 --> 00:22:54,880
Speaker 2: incredibly helpful too, just to personally sort of run through

516
00:22:54,920 --> 00:22:57,359
Speaker 2: that equation and just like to say, what am I

517
00:22:57,440 --> 00:22:59,520
Speaker 2: willing to put into this to earn what?

518
00:22:59,760 --> 00:23:02,640
Speaker 1: Yeah? Yeah, next year or not next year, but maybe

519
00:23:02,640 --> 00:23:04,840
Speaker 1: three years from now? Sure, all right, So I'll make

520
00:23:04,840 --> 00:23:06,880
Speaker 1: a couple of suggestions here. One, does your employer offer

521
00:23:06,920 --> 00:23:10,320
Speaker 1: any financial incentive to get more education, because a lot

522
00:23:10,320 --> 00:23:13,520
Speaker 1: of employers do, and there are often no stipulations about

523
00:23:13,560 --> 00:23:16,600
Speaker 1: what course of study you take. It's funny because Matte

524
00:23:16,680 --> 00:23:19,880
Speaker 1: of one of our buddies, his wife, her employer does

525
00:23:19,920 --> 00:23:22,040
Speaker 1: this very thing, and she has been going back and

526
00:23:22,080 --> 00:23:25,280
Speaker 1: taking nutrition classes and she could get a degree in

527
00:23:25,359 --> 00:23:28,399
Speaker 1: nutrient that's like her hopeful second career. But she's getting

528
00:23:28,440 --> 00:23:31,360
Speaker 1: the education while she has her day job because they're

529
00:23:31,400 --> 00:23:33,840
Speaker 1: paying for it, and they haven't made any stipulations and

530
00:23:33,880 --> 00:23:37,520
Speaker 1: said like nice, sorry, underwater basket weaving is off limits.

531
00:23:37,520 --> 00:23:40,040
Speaker 1: Like she can do whatever she wants and that's pretty cool.

532
00:23:40,040 --> 00:23:41,560
Speaker 1: And a lot of employers do that. They say, go

533
00:23:41,600 --> 00:23:44,520
Speaker 1: get a degree, a nextra degree if you're interested, will

534
00:23:44,560 --> 00:23:45,640
Speaker 1: help foot a lot of the bill.

535
00:23:45,800 --> 00:23:48,600
Speaker 2: Is that not what Edward said, that he's interested into nutrition?

536
00:23:48,800 --> 00:23:52,440
Speaker 1: Yeah exactly, Yeah, okay, Yeah, I think that's cool and

537
00:23:52,640 --> 00:23:55,960
Speaker 1: maybe they could chat. I think it's just worth looking

538
00:23:56,040 --> 00:23:59,480
Speaker 1: at your company's internal website or asking the HR department

539
00:23:59,560 --> 00:24:02,399
Speaker 1: because yeah, maybe there's something there, maybe there's a benefit

540
00:24:02,440 --> 00:24:06,320
Speaker 1: there that you didn't know about or you just hadn't considered. Also,

541
00:24:06,440 --> 00:24:09,480
Speaker 1: what about getting that degree over a longer timeline. I

542
00:24:09,480 --> 00:24:11,480
Speaker 1: think that's a way to save money too, and maybe

543
00:24:11,520 --> 00:24:15,080
Speaker 1: cash flow the cost maybe graduating in four years instead

544
00:24:15,080 --> 00:24:17,320
Speaker 1: of two and a half. That's actually the route that

545
00:24:17,680 --> 00:24:20,040
Speaker 1: we took one. It just felt like it was going

546
00:24:20,119 --> 00:24:23,600
Speaker 1: to be too difficult, right to actually condense that education

547
00:24:23,840 --> 00:24:25,920
Speaker 1: that Emily was gonna be taking extra classes and meant

548
00:24:25,920 --> 00:24:27,639
Speaker 1: a lot more homework. It was gonna be tough to

549
00:24:27,680 --> 00:24:30,280
Speaker 1: have the balance that we wanted in our lives. But

550
00:24:30,359 --> 00:24:33,200
Speaker 1: also stretching out those classes well can make it easier

551
00:24:33,560 --> 00:24:36,040
Speaker 1: to kind of keep that income rolling in while also

552
00:24:36,119 --> 00:24:39,200
Speaker 1: reducing the annual cost of school, which just means, hey,

553
00:24:39,520 --> 00:24:42,760
Speaker 1: I've got more time to work, less money actually going

554
00:24:42,800 --> 00:24:46,679
Speaker 1: to the school itself. So yeah, maybe i won't be

555
00:24:46,680 --> 00:24:49,119
Speaker 1: in my new career as quickly as I'd hoped, but

556
00:24:49,200 --> 00:24:51,040
Speaker 1: at least I'm going to be able to pay it

557
00:24:51,040 --> 00:24:51,520
Speaker 1: off as I go.

558
00:24:51,680 --> 00:24:53,440
Speaker 2: Yeah, well, and what about asking the school that you're

559
00:24:53,440 --> 00:24:56,320
Speaker 2: planning on attending how other students.

560
00:24:55,960 --> 00:24:56,840
Speaker 1: Are affording it?

561
00:24:56,920 --> 00:24:59,080
Speaker 2: Like, what you're literally doing here is putting the ball

562
00:24:59,240 --> 00:25:02,680
Speaker 2: in their court. I think by starting the conversation here,

563
00:25:03,080 --> 00:25:05,320
Speaker 2: like you were showing that you were taking a proactive approach,

564
00:25:05,720 --> 00:25:07,719
Speaker 2: and I don't know, you might even find a way

565
00:25:07,760 --> 00:25:09,560
Speaker 2: to negotiate that price a little bit. Like if you

566
00:25:09,560 --> 00:25:12,040
Speaker 2: don't ask, Like it's almost like the art of asking

567
00:25:12,040 --> 00:25:13,800
Speaker 2: for a discount, Like you're definitely not going to get

568
00:25:13,800 --> 00:25:15,520
Speaker 2: it if you don't ask. And so I think even

569
00:25:15,560 --> 00:25:17,600
Speaker 2: just by starting the conversation, I think that that could

570
00:25:17,600 --> 00:25:19,560
Speaker 2: be yeah, a whole lot. I don't I could see

571
00:25:19,600 --> 00:25:20,640
Speaker 2: that being financially beneficial.

572
00:25:20,640 --> 00:25:22,800
Speaker 1: I'll have other students been able to pull this off,

573
00:25:23,080 --> 00:25:25,439
Speaker 1: and you might get some some answers so that you

574
00:25:25,440 --> 00:25:28,040
Speaker 1: weren't expecting, and you might get some resources thrown your

575
00:25:28,040 --> 00:25:29,679
Speaker 1: way that you didn't expect it.

576
00:25:29,760 --> 00:25:32,280
Speaker 2: Just because you're the squeaking wheel. You might even be

577
00:25:32,320 --> 00:25:34,600
Speaker 2: surprised at any financial aid that they might offer, just

578
00:25:34,600 --> 00:25:37,320
Speaker 2: because you're asking that. They're like, well, we've actually got

579
00:25:37,320 --> 00:25:39,280
Speaker 2: this program, and then you look into the program a

580
00:25:39,280 --> 00:25:42,200
Speaker 2: little bit and turns out, well, there's five figures here

581
00:25:42,280 --> 00:25:44,040
Speaker 2: waiting on somebody who jumps.

582
00:25:43,760 --> 00:25:46,040
Speaker 1: Through the right hoops, which Edward might have the ability

583
00:25:46,080 --> 00:25:46,320
Speaker 1: to do.

584
00:25:46,920 --> 00:25:48,959
Speaker 2: I would also say that you might want to consider

585
00:25:49,000 --> 00:25:52,840
Speaker 2: other schools that offer a similar degree, because even schools

586
00:25:52,880 --> 00:25:55,360
Speaker 2: that have a similar like quote unquote sticker price, they

587
00:25:55,440 --> 00:26:00,720
Speaker 2: might offer substantially different amounts of aid to students. And

588
00:26:01,080 --> 00:26:03,320
Speaker 2: I think like it sounds like he's pretty set on

589
00:26:03,359 --> 00:26:04,960
Speaker 2: what it is he wants to study. I think it's

590
00:26:05,000 --> 00:26:08,400
Speaker 2: okay to get married to a particular course of study,

591
00:26:08,760 --> 00:26:11,879
Speaker 2: but don't marry a particular school just yet, not until

592
00:26:11,920 --> 00:26:14,680
Speaker 2: you see what they're willing to how they're willing to

593
00:26:14,720 --> 00:26:16,000
Speaker 2: meet you halfway.

594
00:26:16,000 --> 00:26:19,120
Speaker 1: Perhaps dream degree is one thing, dream school is another,

595
00:26:19,400 --> 00:26:21,639
Speaker 1: because that dream degree is offered a whole bunch of

596
00:26:21,640 --> 00:26:24,040
Speaker 1: places in all likelihood, and so there's no need to

597
00:26:24,160 --> 00:26:25,960
Speaker 1: kind of get your heart set on that one specific place.

598
00:26:26,000 --> 00:26:28,280
Speaker 1: You might even find, Hey, I can get this degree

599
00:26:28,320 --> 00:26:29,920
Speaker 1: for a third of the price if I take an

600
00:26:30,440 --> 00:26:32,840
Speaker 1: online classes at this place. It's not even in my state,

601
00:26:33,320 --> 00:26:36,000
Speaker 1: and you know, the end result is kind of the

602
00:26:36,000 --> 00:26:38,840
Speaker 1: same at least from a credentialism standpoint and what you're

603
00:26:38,840 --> 00:26:40,920
Speaker 1: able to learn. But you just save a whole lot

604
00:26:40,920 --> 00:26:43,440
Speaker 1: of money in the process. It's at least worth considering.

605
00:26:43,840 --> 00:26:47,400
Speaker 1: Also consider fellowships, right, that's just another option worth exploring

606
00:26:47,400 --> 00:26:50,159
Speaker 1: for some grad students. I'm not sure how applicable that

607
00:26:50,240 --> 00:26:52,359
Speaker 1: is in your field of study, but it's it's at

608
00:26:52,400 --> 00:26:55,240
Speaker 1: least worth looking. And when it comes to scholarships, the

609
00:26:55,560 --> 00:26:58,320
Speaker 1: Internet is your friend. There's a website called scally. It's

610
00:26:58,400 --> 00:27:01,160
Speaker 1: run by Sally May these days. That's worth that's worth

611
00:27:01,200 --> 00:27:03,720
Speaker 1: at least like thumbing through and then don't forget to

612
00:27:03,720 --> 00:27:06,160
Speaker 1: fill out your FAFSA. You might find that you're eligible

613
00:27:06,200 --> 00:27:08,080
Speaker 1: for some grants for some financial aid that you weren't

614
00:27:08,119 --> 00:27:12,639
Speaker 1: aware of. And something else worth considering is where you

615
00:27:12,680 --> 00:27:15,920
Speaker 1: work after you get the degree. We talked about asking

616
00:27:15,920 --> 00:27:19,000
Speaker 1: your employer now about what sort of benefits they offer

617
00:27:19,040 --> 00:27:20,720
Speaker 1: if you go back to get a degree, But a

618
00:27:20,720 --> 00:27:24,920
Speaker 1: lot of employers offer tuition reimbursement. So while you may

619
00:27:24,960 --> 00:27:27,000
Speaker 1: not be able to pay for your degree in cash

620
00:27:27,480 --> 00:27:30,159
Speaker 1: right now, you might be able to have some of

621
00:27:30,200 --> 00:27:33,560
Speaker 1: that debt if you took some on forgiven over time

622
00:27:33,640 --> 00:27:36,440
Speaker 1: as an employer perk, if you choose the right employer

623
00:27:36,600 --> 00:27:39,240
Speaker 1: to utilize that degree after you get it totally.

624
00:27:39,320 --> 00:27:42,720
Speaker 2: Yeah, ask around some different employers or different hospitals or practices,

625
00:27:42,760 --> 00:27:45,640
Speaker 2: and they might have some some perks. I would hate

626
00:27:45,680 --> 00:27:47,280
Speaker 2: to see him. I don't know if this is even

627
00:27:47,320 --> 00:27:49,280
Speaker 2: a thing, but I would hate to see him like

628
00:27:49,359 --> 00:27:51,800
Speaker 2: sign away a certain number of years of his life

629
00:27:52,480 --> 00:27:54,160
Speaker 2: where he's just like, I'm willing to be an indentured

630
00:27:54,200 --> 00:27:57,640
Speaker 2: servant for so many years. But it kind of depends

631
00:27:57,640 --> 00:27:59,639
Speaker 2: on how much they might be willing to offset the

632
00:27:59,640 --> 00:28:01,879
Speaker 2: cost of that higher education. Yeah, in particular, when you're

633
00:28:01,920 --> 00:28:05,320
Speaker 2: talking about seventy three thousand dollars Joel. Let's hear from

634
00:28:05,359 --> 00:28:10,200
Speaker 2: another listener they are waiting into the WROTH versus traditional

635
00:28:10,480 --> 00:28:14,360
Speaker 2: debate as they are contemplating quasi early retirement.

636
00:28:15,560 --> 00:28:17,879
Speaker 5: My wife is fifty one years old and we'll retire

637
00:28:17,880 --> 00:28:20,199
Speaker 5: in the next three to five years. She will have

638
00:28:20,240 --> 00:28:22,959
Speaker 5: a pension that will cover our living expenses. Currently, she

639
00:28:23,000 --> 00:28:25,400
Speaker 5: has seven hundred and twenty five thousand in a four

640
00:28:25,440 --> 00:28:30,280
Speaker 5: percent matched traditional four to seven deferred compensation account, which

641
00:28:30,280 --> 00:28:34,159
Speaker 5: she contributes the annuel maximum for her remaining three to

642
00:28:34,240 --> 00:28:37,840
Speaker 5: five years. I'm thinking of switching her future contributions into

643
00:28:37,920 --> 00:28:41,760
Speaker 5: a ROTH four to fifty seven deferred compensation account. Can

644
00:28:41,800 --> 00:28:44,400
Speaker 5: you tell me is there a benefit to making future

645
00:28:44,440 --> 00:28:48,280
Speaker 5: contributions into a ROTH four fifty seven versus maintaining the

646
00:28:48,320 --> 00:28:52,240
Speaker 5: traditional four to five seven deferred account in order to

647
00:28:52,280 --> 00:28:56,360
Speaker 5: hedge against future tax liabilities related to any withdrawals from

648
00:28:56,400 --> 00:29:02,720
Speaker 5: that traditional four to five seven pre tax deferred compensation account. Also,

649
00:29:03,160 --> 00:29:05,600
Speaker 5: if we're able, should we convert any of her seven

650
00:29:05,680 --> 00:29:08,960
Speaker 5: hundred and twenty five thousand from the traditional four five

651
00:29:09,040 --> 00:29:14,480
Speaker 5: seven funds to a ROTH four. Thanks again for your time.

652
00:29:14,560 --> 00:29:15,160
Speaker 5: Appreciate it.

653
00:29:16,280 --> 00:29:18,400
Speaker 1: Matt. It sounds like Mike. That is his name, by

654
00:29:18,400 --> 00:29:20,920
Speaker 1: the way, he didn't stay it at the beginning. That's okay, Mike,

655
00:29:20,960 --> 00:29:23,520
Speaker 1: Well maybe it's okay, yeah, his or did he say

656
00:29:23,560 --> 00:29:24,040
Speaker 1: where he's from?

657
00:29:24,160 --> 00:29:26,680
Speaker 2: That's true, like you know, maybe he's in Alaska, could

658
00:29:26,680 --> 00:29:28,600
Speaker 2: be maybe he's in Rhode Island, big difference.

659
00:29:28,600 --> 00:29:31,800
Speaker 1: Who knows. Well, your wife is going to be a

660
00:29:31,800 --> 00:29:34,520
Speaker 1: young retiree. It sounds like Mike, and you said something

661
00:29:34,600 --> 00:29:37,240
Speaker 1: crucial by the way, that her pension will cover your

662
00:29:37,280 --> 00:29:41,600
Speaker 1: living expenses, which is fantastic, Like what a great position

663
00:29:41,840 --> 00:29:43,080
Speaker 1: to be in. It means that you're going to have

664
00:29:43,520 --> 00:29:46,840
Speaker 1: a lot of freedom because of those additional dollars that

665
00:29:47,160 --> 00:29:50,160
Speaker 1: she's worked hard to amass over the years. A pension

666
00:29:50,200 --> 00:29:53,560
Speaker 1: is great, but when a pension is substantial enough to

667
00:29:53,640 --> 00:29:57,680
Speaker 1: cover all of your living expenses, that just the flexibility

668
00:29:57,680 --> 00:30:00,640
Speaker 1: you have with your retirement accounts can be incredible. It's

669
00:30:00,680 --> 00:30:03,640
Speaker 1: pretty sweet. But one thing that Mike didn't say anything

670
00:30:03,680 --> 00:30:07,600
Speaker 1: about was his job. And you're interes sitting at home

671
00:30:07,640 --> 00:30:11,360
Speaker 1: watching Sports Center. Maybe because of that, maybe your household

672
00:30:11,440 --> 00:30:15,000
Speaker 1: overall judgment, no judgment that would partially dictate whether or

673
00:30:15,040 --> 00:30:17,800
Speaker 1: not you opt for a roth or traditional for your

674
00:30:17,840 --> 00:30:21,280
Speaker 1: wife these days, if you are both let's say at

675
00:30:21,280 --> 00:30:23,400
Speaker 1: peak earning years, well, then you know, if you're finding

676
00:30:23,400 --> 00:30:26,320
Speaker 1: yourself in the twenty four percent tax bracket or even higher,

677
00:30:27,120 --> 00:30:30,240
Speaker 1: I might continue to opt to contribute to the traditional

678
00:30:30,480 --> 00:30:33,400
Speaker 1: account in hopes of paying less in tax during your

679
00:30:33,560 --> 00:30:34,160
Speaker 1: timing years.

680
00:30:34,680 --> 00:30:36,920
Speaker 2: And this is coming from someone who is a huge

681
00:30:36,920 --> 00:30:37,960
Speaker 2: fan of the of.

682
00:30:37,840 --> 00:30:39,760
Speaker 1: All the different wroth varieties out there.

683
00:30:40,320 --> 00:30:42,840
Speaker 2: That being said, it still makes particular sense to prioritize

684
00:30:42,840 --> 00:30:45,960
Speaker 2: a roth specifically in your early career years when you

685
00:30:46,000 --> 00:30:47,960
Speaker 2: aren't earning a ton of money, when you aren't in

686
00:30:48,160 --> 00:30:51,120
Speaker 2: those higher tax brackets, and for many when they're making

687
00:30:51,160 --> 00:30:54,160
Speaker 2: bank it makes sense to take the tax deduction now

688
00:30:54,200 --> 00:30:57,120
Speaker 2: with the traditional accounts. And like he alluded to, you

689
00:30:57,160 --> 00:30:59,680
Speaker 2: can always convert to roth in the you know, first

690
00:30:59,760 --> 00:31:02,800
Speaker 2: years of retirement where you can zero in on a

691
00:31:02,840 --> 00:31:06,240
Speaker 2: particular withdrawal rate where you are targeting a specific tax

692
00:31:06,280 --> 00:31:10,000
Speaker 2: bracket when you convert. And you know, there's some science

693
00:31:10,000 --> 00:31:13,200
Speaker 2: to it, but it's oftentimes more of an art than science.

694
00:31:13,200 --> 00:31:15,200
Speaker 2: There are so many different factors that come into play

695
00:31:15,200 --> 00:31:17,800
Speaker 2: as to whether or not you go with the ROTH

696
00:31:17,880 --> 00:31:20,640
Speaker 2: versus the traditional and specifically.

697
00:31:20,160 --> 00:31:22,240
Speaker 1: Whether or not you convert those dollars later in life.

698
00:31:22,280 --> 00:31:25,800
Speaker 1: And it's almost always like a multi year thing to

699
00:31:25,840 --> 00:31:29,000
Speaker 1: convert little bits at a time so that you're continuing

700
00:31:29,040 --> 00:31:33,120
Speaker 1: to keep the taxes that you pay on those conversions minimal. Right, Sure,

701
00:31:33,360 --> 00:31:35,480
Speaker 1: but if you're already retired, let's say, and your wife

702
00:31:35,560 --> 00:31:38,160
Speaker 1: is the only one working, Hey, your income has likely

703
00:31:38,200 --> 00:31:41,080
Speaker 1: already declined from those peak earning years. If you have

704
00:31:41,280 --> 00:31:43,240
Speaker 1: cut your income, let's say, in half, I'm just making

705
00:31:43,280 --> 00:31:46,280
Speaker 1: a guess here. If that's the case, contributing directly to

706
00:31:46,400 --> 00:31:49,680
Speaker 1: a WROTH with additional investing dollars, that's what I would

707
00:31:49,680 --> 00:31:52,480
Speaker 1: do in all likelihood, Right, it's all about those specifics.

708
00:31:52,520 --> 00:31:54,560
Speaker 1: But if that's been the case, it's like we've had

709
00:31:54,600 --> 00:31:59,160
Speaker 1: two full time jobs, lots of income coming in. That's

710
00:31:59,160 --> 00:32:02,840
Speaker 1: why we've kind of prioritized traditional That makes sense. And hey,

711
00:32:02,880 --> 00:32:05,000
Speaker 1: maybe now maybe you were retired last year or something

712
00:32:05,040 --> 00:32:07,800
Speaker 1: like that, and now the only paycheck that's coming in

713
00:32:08,040 --> 00:32:11,280
Speaker 1: is hers, and so that has brought your justin gross

714
00:32:11,280 --> 00:32:14,200
Speaker 1: income down significantly for the time being, that might be

715
00:32:14,240 --> 00:32:17,360
Speaker 1: a perfect time to utilize ROTH contributions kind of like

716
00:32:17,400 --> 00:32:18,720
Speaker 1: you're alluding to, like your ass.

717
00:32:18,480 --> 00:32:20,760
Speaker 2: Which maybe that's what he's thinking. He's thinking through He's

718
00:32:20,760 --> 00:32:22,240
Speaker 2: just like life is going to look different for the

719
00:32:22,320 --> 00:32:24,640
Speaker 2: next three to five years. Like you said, it also

720
00:32:24,640 --> 00:32:26,760
Speaker 2: comes down to a guess from my play, we don't

721
00:32:26,760 --> 00:32:27,719
Speaker 2: have all the information exactly.

722
00:32:28,000 --> 00:32:28,640
Speaker 1: I was gonna say too.

723
00:32:28,680 --> 00:32:31,160
Speaker 2: It also depends not only on their income, but also

724
00:32:31,240 --> 00:32:33,840
Speaker 2: their expected expenses off in the future as well, because

725
00:32:33,880 --> 00:32:37,080
Speaker 2: I'm thinking of let's say they both went from both

726
00:32:37,120 --> 00:32:39,760
Speaker 2: working full time jobs, so now they're both retired, they've

727
00:32:39,760 --> 00:32:41,160
Speaker 2: got a lot more time on their hands, and what

728
00:32:41,200 --> 00:32:43,320
Speaker 2: are they gonna do with that extra extra additional time?

729
00:32:43,360 --> 00:32:43,880
Speaker 1: Pickleball?

730
00:32:44,000 --> 00:32:47,160
Speaker 2: Let's maybe is pickleball, which it sounds very affordable, in

731
00:32:47,160 --> 00:32:49,720
Speaker 2: which case you can see your expenses go down significantly,

732
00:32:50,160 --> 00:32:55,000
Speaker 2: in which case, making let's say the Wroth option now

733
00:32:55,120 --> 00:32:59,880
Speaker 2: while she is working actually the unwise choice, because essentially,

734
00:33:00,040 --> 00:33:02,040
Speaker 2: the fewer dollars you need to realize down the road,

735
00:33:02,680 --> 00:33:06,720
Speaker 2: the more likely it makes sense to take advantage of

736
00:33:06,760 --> 00:33:08,680
Speaker 2: the traditional now because.

737
00:33:08,440 --> 00:33:10,360
Speaker 1: And especially if part of it depends too, like you're

738
00:33:10,360 --> 00:33:13,200
Speaker 1: alluding to, on your overall balance in those retirement accounts.

739
00:33:13,440 --> 00:33:16,320
Speaker 1: Because rm ds coming down the road, they might not

740
00:33:16,440 --> 00:33:18,280
Speaker 1: be that might they might not be that substantial if

741
00:33:18,320 --> 00:33:19,320
Speaker 1: you don't have tons of money safe.

742
00:33:19,440 --> 00:33:21,760
Speaker 2: So so what you said was like pickleball, which is

743
00:33:21,800 --> 00:33:23,840
Speaker 2: sort of like the frugal Like, if you expect a

744
00:33:23,880 --> 00:33:28,320
Speaker 2: future retirement of like simple living, frugal living, pickleball, I'm

745
00:33:28,360 --> 00:33:30,280
Speaker 2: gonna splurge and spend like one hundred and fifty bucks

746
00:33:30,320 --> 00:33:30,800
Speaker 2: on a paddle.

747
00:33:30,840 --> 00:33:34,280
Speaker 1: Okay, that's nothing scheme.

748
00:33:34,280 --> 00:33:35,760
Speaker 2: In the big scheme of things. But like let's say,

749
00:33:35,800 --> 00:33:37,600
Speaker 2: for instance, you're plenty to travel the world, and you're

750
00:33:37,640 --> 00:33:40,360
Speaker 2: gonna expect to see your expenses go up significantly because hey,

751
00:33:40,920 --> 00:33:44,200
Speaker 2: not only is the pension completely covering our cost of

752
00:33:44,240 --> 00:33:46,680
Speaker 2: living here that we're that we've been used to, but

753
00:33:46,720 --> 00:33:49,520
Speaker 2: we've got a ton of money set aside to be

754
00:33:49,560 --> 00:33:52,840
Speaker 2: able to live the life to do all the traveling. Well,

755
00:33:52,880 --> 00:33:54,479
Speaker 2: what that means is that you're gonna have to realize

756
00:33:54,480 --> 00:33:56,200
Speaker 2: some of those four to fifty seven dollars, which is

757
00:33:56,240 --> 00:33:59,960
Speaker 2: going to increase your Those dollars are tax as ordinary income,

758
00:34:00,320 --> 00:34:03,560
Speaker 2: is what I'm saying, which could potentially lead to you

759
00:34:03,600 --> 00:34:06,120
Speaker 2: needing to tap more of those dollars, putting you in

760
00:34:06,160 --> 00:34:09,640
Speaker 2: a potentially higher tax bracket later down the road, So

761
00:34:09,680 --> 00:34:12,960
Speaker 2: that would be an instance where opting for the wrath

762
00:34:13,160 --> 00:34:16,200
Speaker 2: actually did make sense because you took the tax hit

763
00:34:16,520 --> 00:34:20,640
Speaker 2: when you were realizing fewer of those dollars. So basically, retirement.

764
00:34:20,280 --> 00:34:23,000
Speaker 1: It's not a straightforward, easy answer, no, and there are

765
00:34:23,000 --> 00:34:24,920
Speaker 1: a lot of factors at play, and this might be

766
00:34:24,960 --> 00:34:27,799
Speaker 1: something you want to do over time, and it comes

767
00:34:27,840 --> 00:34:31,320
Speaker 1: down to income. It comes down to account balances and

768
00:34:31,840 --> 00:34:33,080
Speaker 1: retirement accounts, current.

769
00:34:32,880 --> 00:34:35,920
Speaker 2: In future income, but also current in future expenses and

770
00:34:35,960 --> 00:34:38,320
Speaker 2: the kind of lifestyle you're looking to be able to

771
00:34:38,360 --> 00:34:39,000
Speaker 2: afford as well.

772
00:34:39,080 --> 00:34:42,080
Speaker 1: Yeah, let's talk about roth conversions for just a second.

773
00:34:42,400 --> 00:34:44,280
Speaker 1: Whether or not you choose to do that, it depends

774
00:34:44,320 --> 00:34:48,480
Speaker 1: on your income two and also somewhat on what's going

775
00:34:48,520 --> 00:34:51,520
Speaker 1: on with the stock market. So given that current combination

776
00:34:51,760 --> 00:34:54,719
Speaker 1: of fairly low tax rates and a market that is

777
00:34:54,760 --> 00:34:57,399
Speaker 1: down a little bit, I think converting to a roth ira,

778
00:34:57,680 --> 00:34:59,880
Speaker 1: some of those dollars would be at least on my ra.

779
00:35:01,200 --> 00:35:03,600
Speaker 1: But your wife also might not have that ability. So

780
00:35:03,920 --> 00:35:06,239
Speaker 1: you know, converting to a roth ira is it's often

781
00:35:06,239 --> 00:35:08,359
Speaker 1: an option once you've left your job, but if you're

782
00:35:08,360 --> 00:35:11,719
Speaker 1: still actively employed, you're making contributions to that account that's

783
00:35:11,800 --> 00:35:15,880
Speaker 1: not always allowed. Some plans do allow for in service withdrawals,

784
00:35:15,880 --> 00:35:18,360
Speaker 1: that's what it's called. But you need to check and

785
00:35:18,400 --> 00:35:22,400
Speaker 1: see first. So if your wife's employer offers a WROTH

786
00:35:22,480 --> 00:35:25,000
Speaker 1: four fifty seven B option, you might be able to

787
00:35:25,040 --> 00:35:27,640
Speaker 1: do what's known as an in plan rollover from the

788
00:35:27,719 --> 00:35:31,120
Speaker 1: traditional four to fifty seven B into the WROTH. That

789
00:35:31,200 --> 00:35:34,120
Speaker 1: might be the only maneuver to turn to when you're

790
00:35:34,120 --> 00:35:37,239
Speaker 1: talking about rothifying those dollars. I'd consider pursuing it, but

791
00:35:37,280 --> 00:35:39,400
Speaker 1: you got to know whether that's an option first, And

792
00:35:39,400 --> 00:35:41,880
Speaker 1: you also have to take into consideration some of those

793
00:35:41,880 --> 00:35:44,680
Speaker 1: things that we mentioned before before you opt for a

794
00:35:44,680 --> 00:35:48,160
Speaker 1: wroth conversion, Especially when we're talking about like a bulk

795
00:35:48,200 --> 00:35:50,680
Speaker 1: wroth conversion, that might be something that's best done for

796
00:35:50,719 --> 00:35:53,200
Speaker 1: tax purposes over an extended period of time, not in

797
00:35:53,239 --> 00:35:53,880
Speaker 1: one fell swoop.

798
00:35:54,160 --> 00:35:55,920
Speaker 2: Also, keep in mind you've got to have the cash

799
00:35:55,960 --> 00:35:59,239
Speaker 2: on hand on the sidelines as like dry powder, to

800
00:35:59,280 --> 00:36:01,920
Speaker 2: be able to pay these taxes as well. But my

801
00:36:02,000 --> 00:36:04,560
Speaker 2: guess is that a lot of folks are considering the

802
00:36:04,600 --> 00:36:07,600
Speaker 2: option right now to convert because it's the it's like

803
00:36:07,640 --> 00:36:10,239
Speaker 2: the one silver lining two a declining portfolio.

804
00:36:10,280 --> 00:36:12,759
Speaker 1: It's like that in tax loss harvesting, right, Yeah, that's true.

805
00:36:12,800 --> 00:36:13,760
Speaker 1: There's two silver lines.

806
00:36:14,160 --> 00:36:16,960
Speaker 2: But like so we're talking about corrections and bear markets,

807
00:36:17,200 --> 00:36:19,880
Speaker 2: and you know that can be the perfect time to

808
00:36:20,040 --> 00:36:21,839
Speaker 2: go ahead and pay the piper so that you can

809
00:36:21,880 --> 00:36:24,760
Speaker 2: avoid the growing tax liability off in the future forever,

810
00:36:24,880 --> 00:36:26,640
Speaker 2: something that you never have to worry about ever again,

811
00:36:27,200 --> 00:36:30,000
Speaker 2: because if the market then recovers and it always has

812
00:36:30,480 --> 00:36:32,759
Speaker 2: and then it gains even more, we're talking about a

813
00:36:32,840 --> 00:36:36,000
Speaker 2: much bigger tax bill on the horizon, and there are

814
00:36:36,000 --> 00:36:38,040
Speaker 2: a whole lot of different factors like we have kind

815
00:36:38,040 --> 00:36:41,480
Speaker 2: of talked through to take into account. And with that mind,

816
00:36:42,280 --> 00:36:44,000
Speaker 2: because there are so many dollars that are on the

817
00:36:44,040 --> 00:36:48,360
Speaker 2: line here, I would most definitely consider a financial advisor,

818
00:36:48,480 --> 00:36:51,080
Speaker 2: either talking to a CPA or reaching out to a

819
00:36:51,120 --> 00:36:54,560
Speaker 2: flat fee advisor at like Hello Nectarine, to be able

820
00:36:54,600 --> 00:36:57,759
Speaker 2: to talk through some different scenarios just to make sure

821
00:36:57,800 --> 00:37:00,160
Speaker 2: that you're making the best choice not only for y'all

822
00:37:00,239 --> 00:37:02,480
Speaker 2: right now, but also oft in the future. Yeah, we

823
00:37:02,520 --> 00:37:06,319
Speaker 2: talked about a Wroth conversion calculator that Fidelity has, Matt,

824
00:37:06,400 --> 00:37:09,439
Speaker 2: that I looked up about a month ago or something.

825
00:37:09,480 --> 00:37:10,719
Speaker 2: I was looking into it and.

826
00:37:10,680 --> 00:37:13,040
Speaker 1: I ran some numbers with the market down well, it

827
00:37:13,080 --> 00:37:16,640
Speaker 1: was just really interesting to see the fidelity basically said, well,

828
00:37:16,640 --> 00:37:19,080
Speaker 1: if you do roth conversions in this way, then your

829
00:37:19,120 --> 00:37:21,160
Speaker 1: balance is probably going to be five hundred thousand dollars

830
00:37:21,200 --> 00:37:25,840
Speaker 1: more over time, which is fascinating that, like small wrath

831
00:37:25,840 --> 00:37:29,160
Speaker 1: conversions in the right way can mean you have more

832
00:37:29,200 --> 00:37:32,120
Speaker 1: money to spend. Joel rich Stady Fat Sacks over there,

833
00:37:32,920 --> 00:37:35,040
Speaker 1: I just I wasn't even my numbers. I was just like, oh,

834
00:37:35,239 --> 00:37:37,040
Speaker 1: I want to use this calculator and kind of see

835
00:37:37,040 --> 00:37:39,000
Speaker 1: what it has, what it has going on under the hood,

836
00:37:39,239 --> 00:37:43,200
Speaker 1: and it's fascinating to see how, you know, even talking

837
00:37:43,280 --> 00:37:46,080
Speaker 1: about hundreds of thousands of dollars worth of roth conversions

838
00:37:46,120 --> 00:37:48,120
Speaker 1: if done properly, the amount of money that it can

839
00:37:48,160 --> 00:37:49,959
Speaker 1: save you in tax and the amount of spending power

840
00:37:50,000 --> 00:37:52,160
Speaker 1: that can kind of add to your arsenal, it's it's

841
00:37:52,239 --> 00:37:55,000
Speaker 1: not insignificant. So making sure you do it right is

842
00:37:55,800 --> 00:37:58,600
Speaker 1: of massive importance because we're talking about lots of dollars

843
00:37:58,680 --> 00:38:01,440
Speaker 1: and we're talking about lots of potent tax at stake,

844
00:38:01,520 --> 00:38:03,839
Speaker 1: So speaking of turanga pro could be the best way

845
00:38:03,840 --> 00:38:03,960
Speaker 1: to go.

846
00:38:04,080 --> 00:38:05,800
Speaker 2: Speaking of tax, one thing, we didn't even talk about

847
00:38:05,800 --> 00:38:08,880
Speaker 2: our future potential future tax rates. Yeah, which we're not

848
00:38:08,880 --> 00:38:11,040
Speaker 2: even going to touch on because who the heck know is.

849
00:38:10,960 --> 00:38:12,839
Speaker 1: Still up in the air what the future holds. Yeah,

850
00:38:12,960 --> 00:38:15,280
Speaker 1: all right, we've got more to get to on this episode,

851
00:38:15,400 --> 00:38:19,160
Speaker 1: more questions of yours, including cash gifts, how do you

852
00:38:19,200 --> 00:38:22,279
Speaker 1: do that? And talk about auto insurance as well. We'll

853
00:38:22,360 --> 00:38:32,040
Speaker 1: hit those up right after this. You know what, We've

854
00:38:32,040 --> 00:38:33,279
Speaker 1: got more how to money for you.

855
00:38:33,440 --> 00:38:35,680
Speaker 2: Now that we are back from the break, it is

856
00:38:35,920 --> 00:38:38,200
Speaker 2: now time for the Facebook question of the week, which

857
00:38:38,280 --> 00:38:41,480
Speaker 2: is from David, and he writes, Hey, y'all, we are

858
00:38:41,480 --> 00:38:44,000
Speaker 2: in our mid thirties. You can tell David's a Southerner.

859
00:38:44,120 --> 00:38:46,440
Speaker 2: So he says, y'all, we are in our mid thirties,

860
00:38:46,600 --> 00:38:49,040
Speaker 2: about three quarters of the way through money gear four,

861
00:38:49,400 --> 00:38:52,799
Speaker 2: with some in Gear five. We have two vehicles at

862
00:38:52,800 --> 00:38:55,240
Speaker 2: two thousand and eight Toyota worth about twelve thousand dollars

863
00:38:55,320 --> 00:38:57,399
Speaker 2: and a two thousand and nine Honda worth about three

864
00:38:57,440 --> 00:39:00,439
Speaker 2: thousand dollars. We've got full coverage on them with higher

865
00:39:00,520 --> 00:39:03,919
Speaker 2: liability limits than our state's minimum, as well as five

866
00:39:03,960 --> 00:39:06,640
Speaker 2: hundred dollars deductibles and all of the coverage items. I

867
00:39:06,680 --> 00:39:08,480
Speaker 2: looked at how much we could save if we just

868
00:39:08,680 --> 00:39:11,640
Speaker 2: all coverage except the state minimum liability, and it was

869
00:39:11,680 --> 00:39:16,000
Speaker 2: only seventy eight dollars per month, roughly fifty percent savings.

870
00:39:16,320 --> 00:39:18,520
Speaker 2: If I multiply seventy eight dollars though by one hundred

871
00:39:18,520 --> 00:39:21,279
Speaker 2: and seventy three, we get thirteen thousand, four hundred and

872
00:39:21,320 --> 00:39:23,440
Speaker 2: ninety four dollars, which is what we could roughly be

873
00:39:23,520 --> 00:39:25,880
Speaker 2: worth if invested into the S and P five hundred

874
00:39:25,880 --> 00:39:28,239
Speaker 2: each month. We don't make a lot of money, so

875
00:39:28,280 --> 00:39:30,439
Speaker 2: I'm looking for ways to cut costs so we can

876
00:39:30,680 --> 00:39:33,280
Speaker 2: increase our savings. But I also don't love the idea

877
00:39:33,360 --> 00:39:37,920
Speaker 2: of putting the bill for a total vehicle. And I'll

878
00:39:37,960 --> 00:39:40,520
Speaker 2: mention too, David, he that's the rule of one to

879
00:39:40,560 --> 00:39:43,200
Speaker 2: seventy three. It's a monthly savings amount. Were you to

880
00:39:43,239 --> 00:39:47,560
Speaker 2: invest that, it's the compounding return were you to continue

881
00:39:47,600 --> 00:39:49,879
Speaker 2: to then invest that dollar amount every single month over

882
00:39:49,880 --> 00:39:52,200
Speaker 2: the course of a decade, over ten years exactly, and

883
00:39:52,400 --> 00:39:54,760
Speaker 2: I'll say thirteen thousand dollars. It doesn't sound all that much,

884
00:39:55,000 --> 00:39:57,320
Speaker 2: but that's just like at the very beginning of the compounding.

885
00:39:57,480 --> 00:39:59,560
Speaker 2: Like if you do that for another decade and you're

886
00:39:59,600 --> 00:40:02,600
Speaker 2: looking at figure like easily three times, that.

887
00:40:03,080 --> 00:40:05,360
Speaker 1: Is what you would see. Yeah, which I think is

888
00:40:05,719 --> 00:40:08,680
Speaker 1: worth pointing out. And you're also talking about a fifty

889
00:40:08,719 --> 00:40:12,120
Speaker 1: percent cut in what you're putting towards insurance every single month.

890
00:40:12,120 --> 00:40:14,280
Speaker 1: And this is just one of my favorite topics to discuss,

891
00:40:14,320 --> 00:40:16,600
Speaker 1: and I feel like in the personal finance space it

892
00:40:16,640 --> 00:40:19,120
Speaker 1: goes under discussed just how to save money on insurance,

893
00:40:19,120 --> 00:40:21,279
Speaker 1: Like you don't want to like cut your insurance to

894
00:40:21,320 --> 00:40:23,719
Speaker 1: the bare bones, Like, hey, I'm gonna eliminate my health

895
00:40:23,719 --> 00:40:26,160
Speaker 1: insurance because that's going to save me, you know, seven

896
00:40:26,239 --> 00:40:28,719
Speaker 1: hundred dollars in premiums every single month. And then you

897
00:40:28,760 --> 00:40:30,360
Speaker 1: fall out of a tree and like break your femur

898
00:40:30,440 --> 00:40:31,560
Speaker 1: or something like that, and you've got to go to

899
00:40:31,600 --> 00:40:33,600
Speaker 1: the emergency room. Think about all those bills. Why you

900
00:40:33,600 --> 00:40:35,360
Speaker 1: even then the tree Joel, Yeah, I know exactly. I

901
00:40:35,400 --> 00:40:37,000
Speaker 1: was getting my cat or something like that. I don't know,

902
00:40:37,280 --> 00:40:39,799
Speaker 1: but that those are the kind of decisions that are

903
00:40:39,800 --> 00:40:42,879
Speaker 1: short sighted, and you know, you're better off to pay

904
00:40:42,920 --> 00:40:46,279
Speaker 1: the health insurance premium because of what could happen. And

905
00:40:46,960 --> 00:40:51,120
Speaker 1: with car insurance, the stakes are a little bit lower,

906
00:40:51,160 --> 00:40:52,920
Speaker 1: but they're still really important and there is a lot

907
00:40:52,920 --> 00:40:55,680
Speaker 1: at stake. And I'm kind of biased and I think

908
00:40:55,920 --> 00:40:59,880
Speaker 1: that Folks with older vehicles that have appreciated substantially should

909
00:41:00,239 --> 00:41:02,440
Speaker 1: get rid of full coverage. That is actually one of

910
00:41:02,480 --> 00:41:06,600
Speaker 1: the primary benefits of driving an older car, specifically something

911
00:41:06,600 --> 00:41:09,560
Speaker 1: that is almost twenty years old, like David's doing right,

912
00:41:10,560 --> 00:41:12,800
Speaker 1: But that is only if you can easily afford to

913
00:41:12,840 --> 00:41:16,200
Speaker 1: self insurance take on that additional risk. If your savings

914
00:41:16,280 --> 00:41:18,960
Speaker 1: are paltry, if they're minimal, you still need to keep

915
00:41:18,960 --> 00:41:21,360
Speaker 1: full coverage in my opinion, even if it's more costly,

916
00:41:21,800 --> 00:41:25,640
Speaker 1: which just I think incentivizes you to save more money

917
00:41:25,880 --> 00:41:28,320
Speaker 1: so that you can afford to ditch the full coverage,

918
00:41:28,640 --> 00:41:30,279
Speaker 1: And no one can guarantee that it's going to be

919
00:41:30,280 --> 00:41:32,239
Speaker 1: the best result. You could always get into a wreck

920
00:41:32,440 --> 00:41:35,000
Speaker 1: next week the week after you drop the full coverage

921
00:41:35,360 --> 00:41:39,480
Speaker 1: on your insurance policy, which would be yes frustrating, and

922
00:41:39,560 --> 00:41:43,200
Speaker 1: it is potentially part of the deal. Like the odds

923
00:41:43,239 --> 00:41:46,080
Speaker 1: though are in your financial favor. Makes me think of Matt,

924
00:41:46,200 --> 00:41:48,680
Speaker 1: the insurance policy I have on my home, and I

925
00:41:48,760 --> 00:41:51,359
Speaker 1: have a percentage based insurance policy, and when the tree

926
00:41:51,400 --> 00:41:54,080
Speaker 1: came crashing down through our roof, I believe you asked me,

927
00:41:54,160 --> 00:41:56,480
Speaker 1: are you going to change that now because you're deductible?

928
00:41:56,600 --> 00:41:59,000
Speaker 1: Was so ridiculous. And I said, I didn't ask you

929
00:41:59,040 --> 00:42:01,319
Speaker 1: that other people, other people, because I know the answer

930
00:42:01,480 --> 00:42:04,640
Speaker 1: as no, I'm not because just mathematically and when you

931
00:42:04,640 --> 00:42:08,120
Speaker 1: think about it, yeah, could a tree fall through my

932
00:42:08,200 --> 00:42:10,040
Speaker 1: roof again this year? Next year?

933
00:42:10,080 --> 00:42:10,360
Speaker 2: Sure?

934
00:42:10,440 --> 00:42:13,920
Speaker 1: And would that harm me financially? Yes? Overall though I'm

935
00:42:14,040 --> 00:42:15,799
Speaker 1: looking at the numbers and I believe I will come

936
00:42:15,840 --> 00:42:18,640
Speaker 1: out ahead, although it didn't feel like it when the

937
00:42:18,680 --> 00:42:19,280
Speaker 1: event occurred.

938
00:42:19,320 --> 00:42:22,360
Speaker 2: When you're forking out, yeah, five figures. So when it

939
00:42:22,440 --> 00:42:25,840
Speaker 2: came out to the deductible there. But David, he mentioned

940
00:42:25,840 --> 00:42:27,359
Speaker 2: that he doesn't make a lot of money, which makes

941
00:42:27,360 --> 00:42:30,160
Speaker 2: it even harder to buy a new car outright if

942
00:42:30,200 --> 00:42:33,239
Speaker 2: he needed it post accident, and he eliminated that coverage.

943
00:42:33,680 --> 00:42:36,440
Speaker 2: So I'm not sure what, David, what your savings looks like,

944
00:42:36,560 --> 00:42:38,880
Speaker 2: which is the most relevant factor here. But this is

945
00:42:38,920 --> 00:42:42,719
Speaker 2: a case where his attemptional to be frugal could end

946
00:42:42,800 --> 00:42:44,840
Speaker 2: up being cheap because if he got in an accident,

947
00:42:44,920 --> 00:42:46,920
Speaker 2: you might have to take out a loan to then

948
00:42:46,960 --> 00:42:49,279
Speaker 2: buy let's say, you know, any type of car, but

949
00:42:49,320 --> 00:42:52,240
Speaker 2: let's say a newer car without any sort of insurance payout,

950
00:42:52,280 --> 00:42:53,960
Speaker 2: And if it happened before he was able to bank

951
00:42:54,040 --> 00:42:57,920
Speaker 2: the savings by reducing his premiums, he could find himself

952
00:42:57,960 --> 00:42:59,560
Speaker 2: in a real bind and it.

953
00:42:59,520 --> 00:43:01,720
Speaker 1: Would like not be worth it for him.

954
00:43:02,200 --> 00:43:04,920
Speaker 2: He mentioned too that he's three quarters of the way

955
00:43:04,920 --> 00:43:07,520
Speaker 2: through money gear number four and one of year number four.

956
00:43:07,880 --> 00:43:10,200
Speaker 2: Maybe folks are out there asking which money gear is that. Again,

957
00:43:10,280 --> 00:43:12,759
Speaker 2: that's a fully funny funded emergency fund, and if it

958
00:43:12,800 --> 00:43:16,640
Speaker 2: was me personally, I think I would be less likely

959
00:43:16,760 --> 00:43:20,040
Speaker 2: to cut some of these coverages until that thing is like, yeah,

960
00:43:20,080 --> 00:43:22,640
Speaker 2: fully beefed up and fully stopped.

961
00:43:22,680 --> 00:43:24,759
Speaker 1: But maybe that's maybe that's a good answer is once

962
00:43:24,800 --> 00:43:27,160
Speaker 1: you get there, once you achieve the full emergency fund,

963
00:43:27,360 --> 00:43:28,239
Speaker 1: that's the perfect time.

964
00:43:28,280 --> 00:43:30,240
Speaker 2: I would be more than willing to give myself commission

965
00:43:30,320 --> 00:43:33,279
Speaker 2: at that point. But until then, it does kind of

966
00:43:33,280 --> 00:43:35,520
Speaker 2: feel like, all right, well, I'm trying to be frugal here,

967
00:43:35,560 --> 00:43:37,719
Speaker 2: but yeah, it ends up being.

968
00:43:37,480 --> 00:43:40,520
Speaker 1: A cheap move. Okay, So I'm going to say this, like,

969
00:43:40,760 --> 00:43:43,080
Speaker 1: seventy eight dollars a month is not nothing, right, that's

970
00:43:43,080 --> 00:43:46,000
Speaker 1: almost one thousand bucks a year in savings. I think

971
00:43:46,040 --> 00:43:48,600
Speaker 1: it is worth having the goal of increasing his overall

972
00:43:48,840 --> 00:43:52,960
Speaker 1: savings amount his emergency fund to the what we prescribe.

973
00:43:53,400 --> 00:43:56,440
Speaker 1: Before he attempts to fully clawse this back. But what

974
00:43:56,600 --> 00:43:59,799
Speaker 1: if he kind of split the difference here, and what

975
00:44:00,080 --> 00:44:04,359
Speaker 1: if he the Honda in particular that's worth three thousand dollars, Well,

976
00:44:04,400 --> 00:44:07,080
Speaker 1: that might need not need full coverage. I would say,

977
00:44:07,120 --> 00:44:10,600
Speaker 1: maybe consider keeping full coverage on the Toyota that's worth

978
00:44:10,640 --> 00:44:12,640
Speaker 1: a whole lot more twelve grand yep, and then the

979
00:44:13,440 --> 00:44:17,759
Speaker 1: Honda that's worth three thousand dollars that's fully depreciate it

980
00:44:17,800 --> 00:44:20,160
Speaker 1: out essentially. I like that you're gonna save not as

981
00:44:20,239 --> 00:44:22,240
Speaker 1: much money, but you're gonna save some. So maybe instead

982
00:44:22,239 --> 00:44:25,080
Speaker 1: of saving seventy eight a month, you're gonna save thirty

983
00:44:25,080 --> 00:44:26,279
Speaker 1: two a month something like that.

984
00:44:26,360 --> 00:44:28,040
Speaker 2: But it's a step in the right direction. Yeah, yeah,

985
00:44:28,120 --> 00:44:30,840
Speaker 2: cut the cut all the unnecessary coverage on the Honda Civic.

986
00:44:31,040 --> 00:44:31,279
Speaker 1: Yeah.

987
00:44:32,000 --> 00:44:36,600
Speaker 2: Whereas that's an old Toyota that's worth twelve.

988
00:44:36,320 --> 00:44:41,000
Speaker 1: I like a c sekoya it it could be a Sequoia,

989
00:44:41,080 --> 00:44:42,680
Speaker 1: or it could be a land cruiser. Maybe this lank

990
00:44:42,680 --> 00:44:45,080
Speaker 1: cruiser like the older retain their value. Those things are beefy,

991
00:44:45,200 --> 00:44:45,880
Speaker 1: yeah as well.

992
00:44:46,920 --> 00:44:48,080
Speaker 2: But yeah, I feel like that's the way you can

993
00:44:48,120 --> 00:44:49,759
Speaker 2: have your cake and need it too. Let's do another

994
00:44:49,840 --> 00:44:53,160
Speaker 2: quick one from anonymous. What is your recommendation for setting

995
00:44:53,200 --> 00:44:57,080
Speaker 2: aside cash that relatives give as birthday gifts to small kids.

996
00:44:57,360 --> 00:45:00,000
Speaker 2: I'm not able to contribute to long term savings for her. Yeah,

997
00:45:00,840 --> 00:45:02,960
Speaker 2: so we're talking about a few hundred dollars here and there.

998
00:45:03,120 --> 00:45:05,080
Speaker 2: Do I just put it in my high interest savings

999
00:45:05,120 --> 00:45:07,480
Speaker 2: and then give her the interest that it earned? Is

1000
00:45:07,480 --> 00:45:10,120
Speaker 2: there a low cost way of handling this by putting

1001
00:45:10,160 --> 00:45:11,880
Speaker 2: it in her name? What do you think, Joel? What

1002
00:45:12,200 --> 00:45:14,600
Speaker 2: do you do with kids and cash gifts?

1003
00:45:14,680 --> 00:45:17,160
Speaker 1: That's a good question, and I do you think? You

1004
00:45:17,200 --> 00:45:21,759
Speaker 1: probably want to make it tangible for them as it's

1005
00:45:21,800 --> 00:45:23,720
Speaker 1: a way to teach them. Right, Hey, you got this money,

1006
00:45:23,800 --> 00:45:26,319
Speaker 1: and whatever you want to teach them matters, like where

1007
00:45:26,320 --> 00:45:30,400
Speaker 1: they're talking about saving, investing, and giving money away, whatever

1008
00:45:30,480 --> 00:45:32,399
Speaker 1: you prioritize as a family, you want to make sure

1009
00:45:32,440 --> 00:45:35,160
Speaker 1: that money is tangible in a way that they can understand.

1010
00:45:35,719 --> 00:45:37,759
Speaker 1: This is typically what happens with money that comes into

1011
00:45:37,760 --> 00:45:40,520
Speaker 1: our lives. We choose these different things. You're making an

1012
00:45:40,560 --> 00:45:43,640
Speaker 1: argument for cash here, keeping it as cash as opposed

1013
00:45:43,680 --> 00:45:47,120
Speaker 1: to opening up a fancy account, which is I'm going

1014
00:45:47,200 --> 00:45:49,000
Speaker 1: to say, this is what I did. Yeah, because early

1015
00:45:49,040 --> 00:45:49,800
Speaker 1: on I thought.

1016
00:45:49,600 --> 00:45:52,200
Speaker 2: Oh, the world that our kids are going to be

1017
00:45:52,200 --> 00:45:54,759
Speaker 2: living in money is digital. It's zeros and ones, it's

1018
00:45:54,760 --> 00:45:56,480
Speaker 2: all in the app. It's you know, it's a number

1019
00:45:56,480 --> 00:45:58,320
Speaker 2: getting into it early. It's a number on a screen.

1020
00:45:58,400 --> 00:46:00,799
Speaker 2: But I've done and about faced and we are like

1021
00:46:00,920 --> 00:46:03,640
Speaker 2: fully doing the cash system because I want it to

1022
00:46:03,680 --> 00:46:07,120
Speaker 2: be tangible because of the lessons I'm trying to focus

1023
00:46:07,160 --> 00:46:08,879
Speaker 2: on while they're young and at home.

1024
00:46:08,960 --> 00:46:12,080
Speaker 1: Well, in this poster specifically said small kids. And I

1025
00:46:12,080 --> 00:46:14,799
Speaker 1: think there's a difference between small kids and teenagers. And

1026
00:46:15,040 --> 00:46:19,560
Speaker 1: teenagers are they do are living in that digital world

1027
00:46:19,560 --> 00:46:20,239
Speaker 1: a little bit more?

1028
00:46:20,440 --> 00:46:21,759
Speaker 2: I think they kill more independence.

1029
00:46:21,800 --> 00:46:23,359
Speaker 1: They might have an app on the phone, even if

1030
00:46:23,360 --> 00:46:25,799
Speaker 1: that phone lives at home, they can check their bank

1031
00:46:25,800 --> 00:46:28,560
Speaker 1: account balance or something like that. And so yeah, maybe

1032
00:46:28,560 --> 00:46:30,120
Speaker 1: that is the time to get them in. And so

1033
00:46:30,200 --> 00:46:33,000
Speaker 1: my kids, we have transitioned now to which I mentioned

1034
00:46:33,040 --> 00:46:36,280
Speaker 1: on the show before the Capitol one checking accounts for teens.

1035
00:46:36,320 --> 00:46:38,960
Speaker 1: That are I think kids as young as eight can

1036
00:46:39,000 --> 00:46:42,200
Speaker 1: partake in for kids, Yeah, and that's great, but I

1037
00:46:42,200 --> 00:46:44,040
Speaker 1: wouldn't want to do that with a four or five

1038
00:46:44,080 --> 00:46:46,319
Speaker 1: year old because I tried that with the really young

1039
00:46:46,400 --> 00:46:48,560
Speaker 1: kids and it didn't go so hot. So I think

1040
00:46:48,600 --> 00:46:52,960
Speaker 1: cash is probably king, and if you're talking about interest,

1041
00:46:53,200 --> 00:46:54,840
Speaker 1: I think you know, yeah, you could put it in

1042
00:46:54,880 --> 00:46:57,960
Speaker 1: your high savings account or something like that, but the

1043
00:46:58,000 --> 00:46:59,680
Speaker 1: interest is going to be paltry. If you want your

1044
00:46:59,760 --> 00:47:02,759
Speaker 1: kids to understand how interest works, you're going to need

1045
00:47:02,800 --> 00:47:06,120
Speaker 1: to use your own money to incentivize them, kind of

1046
00:47:06,160 --> 00:47:08,400
Speaker 1: to make interest almost like, hey, we're gonna give you

1047
00:47:08,400 --> 00:47:11,000
Speaker 1: a ten percent interest rate on whatever money you have

1048
00:47:11,040 --> 00:47:13,480
Speaker 1: in savings, just to make it feel tangible. Because we're

1049
00:47:13,520 --> 00:47:17,640
Speaker 1: talking about such small numbers. It almost doesn't. It doesn't

1050
00:47:17,640 --> 00:47:18,160
Speaker 1: move the needle.

1051
00:47:18,239 --> 00:47:21,080
Speaker 2: Yeah, yeah, I will say so we I was looking

1052
00:47:21,080 --> 00:47:23,840
Speaker 2: into so ally they've got saving the savings bucket feature.

1053
00:47:24,280 --> 00:47:25,520
Speaker 1: Our eldest started.

1054
00:47:26,000 --> 00:47:29,480
Speaker 2: She's a mass a decent chunk of money, and I

1055
00:47:29,520 --> 00:47:31,719
Speaker 2: was curious to see how the interest was gonna work.

1056
00:47:31,800 --> 00:47:33,440
Speaker 2: And I saw that we had to do was you

1057
00:47:33,480 --> 00:47:35,920
Speaker 2: had to designate which bucket you wanted the interest of

1058
00:47:35,960 --> 00:47:38,400
Speaker 2: your overall saving is to go to, which I was

1059
00:47:38,440 --> 00:47:42,120
Speaker 2: actually kind of bummed about because I wanted the percentage

1060
00:47:42,120 --> 00:47:44,440
Speaker 2: amount of money that was in that in that specific

1061
00:47:44,520 --> 00:47:46,719
Speaker 2: bucket to then earn interest to go in that bucket. Right,

1062
00:47:46,800 --> 00:47:48,719
Speaker 2: that makes sense if you're thinking about it that way.

1063
00:47:49,120 --> 00:47:51,640
Speaker 2: But to your point, what you could do is you

1064
00:47:51,640 --> 00:47:55,920
Speaker 2: could designate your kid's savings bucket as the interest receiving bucket,

1065
00:47:56,160 --> 00:47:59,239
Speaker 2: specifically if you are with ally, and that would be

1066
00:47:59,280 --> 00:48:01,200
Speaker 2: a way for you to not have to pay out

1067
00:48:01,239 --> 00:48:03,880
Speaker 2: of pocket at all for dollars that they would experience

1068
00:48:04,239 --> 00:48:07,040
Speaker 2: from a kind of compounding standpoint. And it would also

1069
00:48:07,120 --> 00:48:09,680
Speaker 2: be larger than just say a couple hundred dollars here

1070
00:48:09,680 --> 00:48:11,520
Speaker 2: and there. You know, let's say you've got you know,

1071
00:48:11,640 --> 00:48:13,759
Speaker 2: many times more than that, let's say twenty thirty forty

1072
00:48:13,800 --> 00:48:16,239
Speaker 2: thousand dollars in there, because you've got your emergency fund

1073
00:48:16,280 --> 00:48:18,719
Speaker 2: set aside in there, and for them to experience the

1074
00:48:18,760 --> 00:48:22,240
Speaker 2: compounding and the interest growth that that money would receive

1075
00:48:22,680 --> 00:48:27,000
Speaker 2: would be obviously much more than the standard three four

1076
00:48:27,040 --> 00:48:29,399
Speaker 2: percent that hiyo Savings are paying right now. That would

1077
00:48:29,400 --> 00:48:30,920
Speaker 2: be an option in a way to kind of take

1078
00:48:30,920 --> 00:48:33,719
Speaker 2: advantage of some of the different builds in features of

1079
00:48:33,800 --> 00:48:36,760
Speaker 2: hiyod Savings account that already exists while keeping things simple,

1080
00:48:36,800 --> 00:48:38,600
Speaker 2: because I think for me, that's what it would be

1081
00:48:38,800 --> 00:48:41,840
Speaker 2: all about, is just not having to open an additional count,

1082
00:48:42,640 --> 00:48:44,399
Speaker 2: you know, to teach a lesson that may or may

1083
00:48:44,400 --> 00:48:46,560
Speaker 2: not be able to even be absorbed at such a

1084
00:48:46,560 --> 00:48:47,080
Speaker 2: young age.

1085
00:48:47,120 --> 00:48:49,040
Speaker 1: I do think though, kind of what you're getting at

1086
00:48:49,080 --> 00:48:52,080
Speaker 1: with the cash for particularly young kids, I think probably

1087
00:48:52,080 --> 00:48:55,520
Speaker 1: around the age of nine is when that starts to

1088
00:48:55,600 --> 00:48:57,880
Speaker 1: change and digital makes a little more sense. But probably

1089
00:48:57,880 --> 00:49:00,799
Speaker 1: even more in those pre teen years is when is

1090
00:49:00,840 --> 00:49:03,920
Speaker 1: when a debit card attached to a checking account can

1091
00:49:03,960 --> 00:49:06,920
Speaker 1: make a little bit more sense. But I guess the

1092
00:49:06,960 --> 00:49:09,600
Speaker 1: other thing I would mention too is typically we recommend

1093
00:49:09,640 --> 00:49:12,640
Speaker 1: high oot savings accounts with online banks, but when it

1094
00:49:12,640 --> 00:49:17,279
Speaker 1: comes specifically to children's accounts, credit unions can be great

1095
00:49:17,320 --> 00:49:20,240
Speaker 1: at this. So we don't typically love credit unions for savings.

1096
00:49:20,239 --> 00:49:22,960
Speaker 1: We like them for more borrowing products. But some local

1097
00:49:22,960 --> 00:49:25,440
Speaker 1: credit unions have some of the best accounts for kids

1098
00:49:25,440 --> 00:49:27,239
Speaker 1: out there these days. So if you kind of want

1099
00:49:27,239 --> 00:49:29,080
Speaker 1: something local, you want them to actually go in and

1100
00:49:29,080 --> 00:49:30,600
Speaker 1: deposit their money, and you want them to have that

1101
00:49:30,640 --> 00:49:31,880
Speaker 1: experience because I remember.

1102
00:49:31,640 --> 00:49:33,759
Speaker 2: That as a kid, it's an event, yes, uh huh, And.

1103
00:49:33,719 --> 00:49:36,760
Speaker 1: So there's something about that as opposed to like, don't worry, mommy,

1104
00:49:36,800 --> 00:49:39,959
Speaker 1: put the money in your account. Well, there's there's something

1105
00:49:40,000 --> 00:49:41,719
Speaker 1: really cool about taking them in there and them doing

1106
00:49:41,760 --> 00:49:43,640
Speaker 1: giving the money to the teller so that it's in

1107
00:49:43,640 --> 00:49:45,279
Speaker 1: their account and then they get a printed out receipt

1108
00:49:45,320 --> 00:49:47,200
Speaker 1: of how much money is in their account. That's an

1109
00:49:47,239 --> 00:49:49,840
Speaker 1: experience too, and it leaves an imprint. So think about

1110
00:49:49,840 --> 00:49:51,680
Speaker 1: that and find out if one of your local credit

1111
00:49:51,800 --> 00:49:54,439
Speaker 1: unions has some of them offered like ridiculous interest rates

1112
00:49:54,440 --> 00:49:55,480
Speaker 1: on up to three thousand.

1113
00:49:55,239 --> 00:49:58,000
Speaker 2: Dollars or something like that. Kids like three five thousand dollars.

1114
00:49:58,000 --> 00:50:00,680
Speaker 2: Beyond that, they're paying nothing but for that first five thousand.

1115
00:50:00,680 --> 00:50:02,480
Speaker 2: They're trying to incentivize kids to be.

1116
00:50:02,520 --> 00:50:04,680
Speaker 1: Saviors, which is awesome. That's like the kind of that stuff.

1117
00:50:04,719 --> 00:50:07,040
Speaker 1: Credit unions are great at so at least look into that.

1118
00:50:07,360 --> 00:50:10,000
Speaker 1: But says like you had a couple options, and just

1119
00:50:10,120 --> 00:50:13,160
Speaker 1: keeping the cash in envelopes at or jars or something

1120
00:50:13,200 --> 00:50:16,360
Speaker 1: like that at home and then adding to it with

1121
00:50:16,840 --> 00:50:19,239
Speaker 1: mommy paid interest or something like that, that might even

1122
00:50:19,280 --> 00:50:20,160
Speaker 1: be the best option here.

1123
00:50:20,320 --> 00:50:21,719
Speaker 2: You know, are you going to take us back to

1124
00:50:21,760 --> 00:50:24,800
Speaker 2: the beer. This delicious, so tasty, amazing.

1125
00:50:24,440 --> 00:50:26,480
Speaker 1: Beer that you and I got to enjoy during this episode,

1126
00:50:26,560 --> 00:50:29,280
Speaker 1: Ten out of ten would drink again. It was awesome

1127
00:50:29,600 --> 00:50:32,759
Speaker 1: and I think I loved just without the pineapple, this

1128
00:50:32,800 --> 00:50:35,560
Speaker 1: would have been a fantastic IPA. But me, it's kind

1129
00:50:35,560 --> 00:50:36,839
Speaker 1: of like this tropical edge though.

1130
00:50:37,080 --> 00:50:40,040
Speaker 2: So it was aged on on pineapple and I don't

1131
00:50:40,080 --> 00:50:42,480
Speaker 2: exactly know what that looks like, but like it sounds

1132
00:50:42,600 --> 00:50:43,960
Speaker 2: kind of gimmicky.

1133
00:50:44,120 --> 00:50:47,240
Speaker 1: It is not gimmicky at all. It tastes so good.

1134
00:50:47,320 --> 00:50:50,400
Speaker 1: And some fruited gash they taste too fruity, and this doesn't.

1135
00:50:50,680 --> 00:50:54,000
Speaker 1: This tastes like real pineapple in my mouth, in my beer.

1136
00:50:54,680 --> 00:50:56,719
Speaker 1: This was this beer what was it called again? A

1137
00:50:56,719 --> 00:51:00,440
Speaker 1: guillotine of consciousness, A guillotine of contemplation, Oh, contempt, And

1138
00:51:00,480 --> 00:51:02,120
Speaker 1: now I want to cut my head off and do

1139
00:51:02,200 --> 00:51:04,719
Speaker 1: some thinking. Don't do it with this beer in my hand.

1140
00:51:04,800 --> 00:51:07,120
Speaker 2: So, like pineapple has like the sharpness to it, right, Like,

1141
00:51:07,239 --> 00:51:10,400
Speaker 2: I don't know, do you enjoy eating fresh pineapple sometimes

1142
00:51:10,640 --> 00:51:12,200
Speaker 2: sometimes because it'll bust up your mouth?

1143
00:51:12,280 --> 00:51:13,960
Speaker 1: Yeah, Like I don't know if it's the acid you

1144
00:51:14,000 --> 00:51:15,919
Speaker 1: mentioned that one time. What is that called that it does?

1145
00:51:16,080 --> 00:51:18,640
Speaker 2: Oh, it literally starts breaking down, because that's why sometimes

1146
00:51:18,640 --> 00:51:21,640
Speaker 2: you use pineapple to marinate meat. In a similar way, though,

1147
00:51:21,640 --> 00:51:24,200
Speaker 2: that sharpness from the pineapple I feel like compliments the

1148
00:51:24,239 --> 00:51:26,359
Speaker 2: freshness that you get with some of these hops where

1149
00:51:26,360 --> 00:51:29,440
Speaker 2: it has like that hop bite that I typically refer to,

1150
00:51:29,840 --> 00:51:32,480
Speaker 2: and the combination of the pineapple with the hops that

1151
00:51:32,480 --> 00:51:35,000
Speaker 2: they've got going on makes us an incredibly delicious, hazy

1152
00:51:35,000 --> 00:51:36,000
Speaker 2: ipa so good.

1153
00:51:36,040 --> 00:51:38,160
Speaker 1: One of the best beers from one of the best breweries,

1154
00:51:38,560 --> 00:51:39,280
Speaker 1: highly recommended.

1155
00:51:39,440 --> 00:51:41,560
Speaker 2: By the way, if you see some berry on the

1156
00:51:41,600 --> 00:51:44,200
Speaker 2: shelf at your local package store and you live like

1157
00:51:44,239 --> 00:51:46,920
Speaker 2: on the West Coast, for instance, and you're like, oh, okay,

1158
00:51:46,960 --> 00:51:48,880
Speaker 2: that's burial. I've heard, you know, heard the Fellows talk

1159
00:51:48,920 --> 00:51:52,080
Speaker 2: about that Surflax. This is not okay. Surflax is like

1160
00:51:52,160 --> 00:51:54,760
Speaker 2: the standard. It's a great beer, it's a fine beer.

1161
00:51:55,239 --> 00:51:57,600
Speaker 2: It is not like the stuff that they're putting out

1162
00:51:57,600 --> 00:51:59,040
Speaker 2: that you're able to pick up there at the brewery.

1163
00:51:59,080 --> 00:52:01,680
Speaker 1: It's a whole other level. So don't don't. I don't

1164
00:52:01,719 --> 00:52:03,239
Speaker 1: want to conflate the two. As is the case with

1165
00:52:03,320 --> 00:52:06,160
Speaker 1: many breweries. It's like what ends up in distribution is

1166
00:52:06,200 --> 00:52:08,520
Speaker 1: their mass produce stuff. It's I and the stuff you

1167
00:52:08,600 --> 00:52:11,200
Speaker 1: get at the brewery itself is yeah, the more one

1168
00:52:11,200 --> 00:52:13,000
Speaker 1: off stuff. So totally agree, this is a good one.

1169
00:52:13,000 --> 00:52:14,879
Speaker 1: All right, that's gonna do it for this episode. Don't

1170
00:52:14,920 --> 00:52:17,680
Speaker 1: forget to send us your money questions please and go

1171
00:52:17,719 --> 00:52:21,320
Speaker 1: to our website howtomoney dot com for more money saving info.

1172
00:52:21,840 --> 00:52:24,240
Speaker 1: It's open twenty four to seven. All right, Matt, Until

1173
00:52:24,239 --> 00:52:26,920
Speaker 1: next time, best friends out, Best Friends Out,