WEBVTT - Friday Flight - Dumb Debit, Asinine Arbitration, & Eccentric Economic Expectations #891 0:00:00.120 --> 0:00:01.440 Welcome to Out of Money. 0:00:01.480 --> 0:00:04.120 I'm Joel and I am Matt, and today we're talking 0:00:04.120 --> 0:00:09.480 about dumb debit, asinine arbitration, and eccentric economic expectations. 0:00:28.600 --> 0:00:30.600 Yeah, Joe, let's make sure everyone heard you correctly. 0:00:30.680 --> 0:00:34.840 You said dumb debit. Everyone knows that debt is dumb. 0:00:34.840 --> 0:00:37.600 But where pronunciation skills are not the best always. 0:00:37.479 --> 0:00:42.040 Actually that's normally where I shine my quince and speaking 0:00:42.479 --> 0:00:43.519 doesn't often shine through. 0:00:43.600 --> 0:00:46.239 I feel like my alliteration was especially strong today and 0:00:46.280 --> 0:00:48.600 potentially over the centric economic expectations. 0:00:48.680 --> 0:00:50.400 That one was really strong. Yeah for sure. 0:00:50.440 --> 0:00:52.040 I don't mean that in a good way, like maybe 0:00:52.040 --> 0:00:52.640 I ever did it. 0:00:54.520 --> 0:00:57.160 Hey, we haven't talked about the Brays recently. You bummed 0:00:57.160 --> 0:00:58.280 that the Braves are out. 0:00:58.120 --> 0:01:00.160 Of the playoffs, some massive collapse, but we knew was 0:01:00.200 --> 0:01:01.920 gonna happen. My hopes were low. 0:01:01.960 --> 0:01:04.120 But the cool thing, I'm surprised that we that the 0:01:04.120 --> 0:01:06.959 Braves made it as far as they did, given given 0:01:07.040 --> 0:01:07.640 the injuries. 0:01:07.680 --> 0:01:09.760 And yeah, star players who were out agreed. 0:01:10.080 --> 0:01:12.280 But one I think thing that needs to be talked about, 0:01:12.440 --> 0:01:14.960 and we won't talk about sports long. Don't worry, but 0:01:15.240 --> 0:01:17.560 the when you talk. My mom always told me growing 0:01:17.640 --> 0:01:20.240 up Matt, you can't buy a team, and sometimes, you know, 0:01:20.280 --> 0:01:23.720 the big spending teams, they always try, like to try 0:01:23.760 --> 0:01:26.080 to get the star players who are incredibly expensive, and 0:01:26.120 --> 0:01:29.280 then it was always fun to watch them collapse or 0:01:29.280 --> 0:01:31.040 not performed merely as well as they were supposed to. 0:01:31.560 --> 0:01:33.320 And I don't know if anybody out there is like 0:01:33.400 --> 0:01:34.560 laughing when other people get hurt. 0:01:34.720 --> 0:01:36.200 So yeah, I. 0:01:36.280 --> 0:01:39.920 Point and I giggle. It's really fun to see what's 0:01:39.920 --> 0:01:43.360 happening with the Detroit Tigers right now. Yeah. Their entire 0:01:43.400 --> 0:01:47.720 payroll is half less than half of what one player 0:01:47.760 --> 0:01:50.440 on the Yankees gets paid, and so their entire payroll 0:01:50.520 --> 0:01:53.640 is eighteen million, eighteen million. Yeah, and I think crazy, 0:01:53.720 --> 0:01:57.400 think about when the Dodgers paid Shoheo Tani seven hundred 0:01:57.440 --> 0:01:59.720 million dollars, right, And so it's just. 0:01:59.840 --> 0:02:01.920 Over the course of how many years, like a decade, Yeah, 0:02:01.920 --> 0:02:02.200 over the. 0:02:02.160 --> 0:02:06.880 Course of it's still still though, yeah, insane. So I'm 0:02:06.920 --> 0:02:08.680 pulling for the Detroit Tigers at this point. 0:02:08.680 --> 0:02:10.480 Oh hey, yeah, Like who doesn't want to root for 0:02:10.840 --> 0:02:13.240 an underdog? And especially given Detroit, I feel like that 0:02:13.280 --> 0:02:15.840 city has experienced so much hardship, right like over the 0:02:16.080 --> 0:02:18.239 like you look at history, like the past fifty years 0:02:18.240 --> 0:02:20.320 with the collapse of the auto industry and unions and 0:02:20.360 --> 0:02:23.560 all that, and like it makes me think about like 0:02:23.639 --> 0:02:26.800 during the housing crisis during the Great Recession, Like I 0:02:26.840 --> 0:02:28.919 had to get myself off of Instagram, Like I followed 0:02:28.960 --> 0:02:31.480 this account that was called Cheap Old Houses and they 0:02:31.520 --> 0:02:35.200 would feature so many beautiful turn of the century homes 0:02:35.280 --> 0:02:37.400 in Detroit, and I would always show them to Kate 0:02:37.440 --> 0:02:38.840 and be like, hey, babe, you want to move to 0:02:38.840 --> 0:02:40.840 this place because they're basically giving these houses like twelve 0:02:40.880 --> 0:02:43.120 thousand dollars. Yes, and it just needs a little bit 0:02:43.160 --> 0:02:46.320 of work. And this doesn't mean that Detroit's like all 0:02:46.360 --> 0:02:49.119 the problems are now fixed because housing was affordable there 0:02:49.160 --> 0:02:52.200 and now the Tigers might make it to the World Series. 0:02:52.240 --> 0:02:54.600 But I am happy for Detroit. Yeah, as a city. 0:02:54.720 --> 0:02:56.720 Good to see when they've been crapped on for so long. 0:02:57.120 --> 0:02:58.639 There's like a some silver linings. 0:02:58.639 --> 0:03:01.480 Perhaps it seems like Detroit is a rad place to hang. 0:03:01.600 --> 0:03:04.280 I have never been. I would love to go, And 0:03:04.520 --> 0:03:07.200 maybe we'll go see a Tigers game next year and 0:03:07.560 --> 0:03:10.239 check out this awesome team that they've got. So let's 0:03:10.240 --> 0:03:11.720 get to the Friday flight, Matt. Let's get to the 0:03:11.720 --> 0:03:14.760 sampling of stories we found interesting this week. Let's talk 0:03:14.760 --> 0:03:18.359 about debit cards. We don't really like them for the 0:03:18.440 --> 0:03:21.640 most part. And the good folks over at Experience, Matt 0:03:21.840 --> 0:03:24.280 the Credit Bureau Experience, And I say that with my 0:03:24.360 --> 0:03:27.000 tongue firmly in my cheek. They're not great folks necessarily. 0:03:27.040 --> 0:03:28.639 I mean, I'm sure there's some good people who worked there, 0:03:28.680 --> 0:03:31.240 but the organization as a whole not one that we 0:03:31.280 --> 0:03:34.880 really dig or have much fondness for. They launched a 0:03:34.920 --> 0:03:37.920 debit card last year, and friend of the show, Ron Lieber, 0:03:38.320 --> 0:03:40.840 he writes for The New York Times, he put out 0:03:40.840 --> 0:03:44.680 this great article warning people to be wary of this 0:03:44.800 --> 0:03:47.480 debit card product that Experience has. 0:03:47.400 --> 0:03:48.920 He can always count on, mister Lieber. 0:03:49.000 --> 0:03:51.360 Oh yeah, he's holding people's feet to the fire. And 0:03:52.240 --> 0:03:53.880 why did he hate this thing? Why is he telling 0:03:53.920 --> 0:03:55.960 us that we should avoid it. He's basically saying, Hey, 0:03:55.960 --> 0:03:58.520 the perks are really lackluster, and they're going to make 0:03:58.560 --> 0:04:01.520 it sound like it's this awesome thing, but it's really not. 0:04:01.920 --> 0:04:05.240 And some of the promises that the long that they're 0:04:05.280 --> 0:04:07.280 saying is is basically, this account can help you raise 0:04:07.280 --> 0:04:10.080 your credit score. That's one of the major selling points 0:04:10.160 --> 0:04:13.120 for Experience to say, instead of just relying on us 0:04:13.480 --> 0:04:16.400 for your credit needs, you should also rely on us 0:04:16.440 --> 0:04:19.200 for your banking needs because guess what if you bank 0:04:19.240 --> 0:04:21.560 with us, which they're not really a bank, they're one 0:04:21.560 --> 0:04:23.320 of those they've got one of those pass through banks 0:04:23.320 --> 0:04:25.760 that they're working with. If you bank with us, well, 0:04:25.760 --> 0:04:28.640 mate will help you raise your credit score. Well, you 0:04:28.680 --> 0:04:31.760 can enroll in their Experience Boost program, which is like 0:04:31.800 --> 0:04:35.120 their free credit building product without opening a bank account 0:04:35.160 --> 0:04:35.520 with them. 0:04:36.000 --> 0:04:37.880 So I don't know why folks would actually trust this 0:04:37.960 --> 0:04:40.200 company that has done such a poor job yeah at 0:04:40.240 --> 0:04:41.320 protecting your personal. 0:04:41.120 --> 0:04:43.479 Data, not just Experience, all the credit bureaus, but oh 0:04:43.520 --> 0:04:45.320 my gosh, Like why would I want to bank with 0:04:45.400 --> 0:04:47.840 a company with this kind of reputation? And you and 0:04:47.880 --> 0:04:50.240 I were not fans of debit cards in general, but 0:04:50.279 --> 0:04:53.080 getting one from a credit bureau would be like a 0:04:53.120 --> 0:04:56.200 double dose of dumb, I think. So it's called the 0:04:56.400 --> 0:04:59.880 Experience Smart Money debit card, not so smart avoided people. 0:05:01.000 --> 0:05:02.839 I was trying to think of a parallel, like what 0:05:03.120 --> 0:05:05.400 do we see in life, or like what's an example, 0:05:05.400 --> 0:05:08.880 and it makes me think of Ticketmaster because everybody hates Ticketmaster, right, 0:05:09.120 --> 0:05:10.159 but it would be as if I. 0:05:10.160 --> 0:05:11.640 Just had to hold my nose and buy tickets from 0:05:11.640 --> 0:05:13.360 them recently, Yeah, all. 0:05:13.200 --> 0:05:16.039 This fees man, it would be as if you chose 0:05:16.080 --> 0:05:20.400 to wear a Ticketmaster's shirt, because it's like, well, Ticketmaster 0:05:20.600 --> 0:05:24.400 they are music industry adjacent, like they kind of are 0:05:24.520 --> 0:05:26.640 involved with the bands that you love, and you love 0:05:26.680 --> 0:05:29.080 wearing band t shirts stool of your favorite bands. But 0:05:29.120 --> 0:05:31.800 it's like, but no, I actually hate Ticketmaster. I just 0:05:31.920 --> 0:05:35.280 like the bands that they tend to showcase. That's what 0:05:35.320 --> 0:05:37.479 I feel like experience is doing here. It's like they're 0:05:37.520 --> 0:05:41.279 sort of like the thirty rock how do you do 0:05:41.360 --> 0:05:43.960 fellow kids, Like they're trying to swoop in and get 0:05:43.960 --> 0:05:46.200 a part of the action, when in reality they're not 0:05:46.240 --> 0:05:48.679 able to provide anything of actual substance. 0:05:48.760 --> 0:05:50.719 Okay, now you're making you want to get a Ticketmaster 0:05:50.839 --> 0:05:52.679 and an experience lower back tattoo. 0:05:54.160 --> 0:05:55.479 How much do tattoos cost? 0:05:55.520 --> 0:05:57.520 I've never I don't have a tattoo, but I would 0:05:57.520 --> 0:06:00.440 pay for that for you to get given of this. Honestly, 0:06:00.640 --> 0:06:02.560 we got a tap experience because they would probably they 0:06:02.560 --> 0:06:05.400 probably would sponsor you. Yeah, we like credit cards a 0:06:05.400 --> 0:06:08.920 whole lot more obviously, because well they have better protections. 0:06:08.960 --> 0:06:12.320 They can be far more rewarding. But that being said, 0:06:12.600 --> 0:06:14.960 there are new credit card fees that are coming down 0:06:15.000 --> 0:06:18.440 the pike, largely in response to the CFPB's attempt to 0:06:18.800 --> 0:06:22.640 cap late fees at eight dollars, which is by the way, 0:06:22.640 --> 0:06:25.159 this is hung up in court. The outcome is unsure. 0:06:24.920 --> 0:06:26.560 Kind of like a student loan thing. It's like, what's 0:06:26.560 --> 0:06:27.280 gonna happen here? 0:06:27.320 --> 0:06:30.479 We don't exactly know. Yeah, but the big credit card issuers, 0:06:30.480 --> 0:06:32.799 the big banks, they're planning for the hammer to fall. 0:06:33.520 --> 0:06:36.000 And like we said back when that announcement was made, 0:06:36.240 --> 0:06:38.560 their credit card companies, they will find another way. 0:06:38.400 --> 0:06:40.200 To keep their profits elevated. They're crafty. 0:06:40.200 --> 0:06:43.200 They're gonna find a way to charge you some Some 0:06:43.279 --> 0:06:46.360 of them are considering instituting new fees for let's say, 0:06:46.360 --> 0:06:50.119 paper statements. Others are just raising their interest rates, even 0:06:50.160 --> 0:06:53.400 as the FED is actually lowering the overnight lending rate. 0:06:53.400 --> 0:06:55.200 You're like, well, I thought my credit card interest rate 0:06:55.240 --> 0:06:57.320 was gonna go down. Matt and Joel said that it's like, well, 0:06:57.360 --> 0:06:59.160 there's this other thing happening over here, and. 0:06:59.160 --> 0:07:00.800 So big bank, so they got to find a way 0:07:00.800 --> 0:07:01.279 to make a bug. 0:07:01.320 --> 0:07:03.680 It's actually going up. But bottom line, what this means though, 0:07:03.720 --> 0:07:06.160 is that you should never run a balance regardless. That's 0:07:06.240 --> 0:07:08.560 regardless of whether or not interest rates are going up 0:07:08.680 --> 0:07:11.240 or not. Never carry a balance. If you have one, 0:07:11.320 --> 0:07:13.520 pay it off as quickly as possible, of course, but 0:07:13.560 --> 0:07:15.840 then just create a written plan, stick to it when 0:07:15.840 --> 0:07:18.120 it comes to eliminating some of that credit card debt, 0:07:18.480 --> 0:07:20.680 and then just make sure to pay attention to some 0:07:20.720 --> 0:07:22.760 of the different hoops that the banks are going to 0:07:22.800 --> 0:07:24.280 require us to jump through, and we'll make sure to 0:07:24.360 --> 0:07:24.920 keep an eye on. 0:07:24.840 --> 0:07:28.080 That as well. Yeah, if there are any egregious examples 0:07:28.200 --> 0:07:28.760 of that. 0:07:28.640 --> 0:07:30.840 Right, if there really is. If you get hit with 0:07:30.880 --> 0:07:33.520 a paper statement fee, stop getting paper statements and the 0:07:33.640 --> 0:07:36.000 need to offer the digital ones. And if you feel 0:07:36.000 --> 0:07:37.440 like you need to keep the records of all your 0:07:37.440 --> 0:07:40.240 credit card statements, do that. But you can save the 0:07:40.240 --> 0:07:44.200 PDF of those and keep them on hand digitally. I mean, 0:07:44.600 --> 0:07:46.880 do people actually save their credit card statements anyway if 0:07:46.920 --> 0:07:49.480 they keep the paper ones. Yeah, so find a way 0:07:49.520 --> 0:07:52.080 to reduce those fees. It's you're right, Matt. The credit 0:07:52.120 --> 0:07:54.840 card companies, we knew this. If you tamp them down 0:07:54.840 --> 0:07:56.560 in one area, they're going to find another way to 0:07:56.600 --> 0:07:58.960 keep their profits up. Let's make the case for a 0:07:59.000 --> 0:08:04.280 second for technology though, and against checks. We've done this before. 0:08:04.360 --> 0:08:07.560 We hate checks, but it's not because even in this instance, 0:08:07.600 --> 0:08:10.400 retailers aren't accepting them anymore. We talked about how Target 0:08:10.800 --> 0:08:14.480 has basically said, no, we're not taking checks at checkout anymore. 0:08:15.280 --> 0:08:18.200 It's because scammers can actually easily use checks to commit 0:08:18.200 --> 0:08:19.880 fraud or theft. And there was a recent example of 0:08:19.920 --> 0:08:22.120 this map. They can steal the check right out of 0:08:22.160 --> 0:08:25.000 your mailbox and take your money. And so this is 0:08:25.040 --> 0:08:27.480 happening to people who have opted to get their tax 0:08:27.480 --> 0:08:31.760 refund by mail instead of getting their refund via direct deposit. 0:08:32.600 --> 0:08:34.720 And so if you're one of those people, you are 0:08:34.760 --> 0:08:39.040 a target to have your tax refunds stolen. Fortunately, ninety 0:08:39.040 --> 0:08:41.520 percent of folks have opted for direct deposit these days, 0:08:41.520 --> 0:08:44.640 but that's to lease a lot of people. Think about 0:08:44.640 --> 0:08:47.280 ten percent of Americans Matt, getting their tax refundsent to 0:08:47.320 --> 0:08:49.840 their mailbox. That's a sizeable number of folks who are 0:08:49.840 --> 0:08:51.960 taking the old school route. And then if the check 0:08:52.040 --> 0:08:54.360 gets stolen, it's a massive pain of the button, Matt. 0:08:54.360 --> 0:08:57.040 There are examples of people who have said, hey, my 0:08:57.120 --> 0:09:00.280 checkout stolen. I didn't come in the mail, and a 0:09:00.320 --> 0:09:03.520 thief stole the funds, and then the IRS sends another 0:09:03.600 --> 0:09:07.040 check it also gets stolen. This is a significant problem. 0:09:07.200 --> 0:09:10.360 You're out, Yeah, and eventually the IRS is going to 0:09:10.400 --> 0:09:14.000 send you the money that you're owed, but you're out 0:09:14.040 --> 0:09:15.680 the refund for even longer. For a lot of people 0:09:15.760 --> 0:09:18.680 met the refund can be you know, multiple thousands of dollars. 0:09:18.840 --> 0:09:20.640 A lot of folks are counting on that refund. Yeah. 0:09:20.640 --> 0:09:23.520 I mean, I think most Town of Money listeners know this, 0:09:23.600 --> 0:09:26.320 especially given the demographics of the people who listen. But 0:09:26.640 --> 0:09:30.000 direct deposit offer that it's easier, it has fewer pitfalls, 0:09:30.200 --> 0:09:32.200 And so in the spring when you file your taxes, 0:09:32.559 --> 0:09:34.719 make sure to elect for a direct deposit because if 0:09:34.720 --> 0:09:37.120 you opt for a check to come, one it could 0:09:37.120 --> 0:09:40.000 get stolen. And two, even when you're asking for a replacement, 0:09:40.000 --> 0:09:42.439 you can't switch to direct deposit. They have to. The 0:09:42.840 --> 0:09:45.440 IRS basically says no, we're going to send you another check, 0:09:45.640 --> 0:09:47.560 and you can't change the method of payment. 0:09:48.080 --> 0:09:48.320 Yeah. 0:09:48.400 --> 0:09:51.520 So at the very least, maybe you know somebody so, 0:09:51.880 --> 0:09:53.000 like you said, Jill, I think a lot of our 0:09:53.040 --> 0:09:55.440 listeners probably aren't opting for the paper check, but maybe 0:09:55.480 --> 0:09:57.520 there might be somebody in your family, for instance, who 0:09:57.640 --> 0:09:59.160 is opting for that, and make sure. 0:09:58.960 --> 0:10:01.080 That this is a discussion that you have with them. Jill. 0:10:01.160 --> 0:10:05.120 Let's talk about entrepreneurship. There's a spike in small business 0:10:05.240 --> 0:10:08.440 formation back when COVID hit, But the thing is is 0:10:08.480 --> 0:10:11.920 that is continuing strong and many of the companies that 0:10:11.960 --> 0:10:16.200 were formed during that COVID induced economic downturn, they have 0:10:16.280 --> 0:10:19.239 been crushing it. And it turns out it wasn't just 0:10:19.360 --> 0:10:22.400 that you know, stemy check phenomenon that we're causing folks 0:10:22.480 --> 0:10:24.720 to reconsider their you know how, it is that they 0:10:24.720 --> 0:10:27.240 spend their time they're nine to five, and that's good news. 0:10:27.280 --> 0:10:30.080 It's happening all across the country and in big cities 0:10:30.120 --> 0:10:33.600 and small cities, in metropolitan areas as well as rural 0:10:33.640 --> 0:10:37.280 locations as well. And the rise of remote work, which 0:10:37.760 --> 0:10:39.679 it is I will admit it is seeing a bit 0:10:39.679 --> 0:10:43.119 of a pullback in corporate America, but it is allowing, 0:10:43.559 --> 0:10:46.360 it is aiding the ability of individuals to start their 0:10:46.360 --> 0:10:48.400 own thing when they have a little more time, They 0:10:48.480 --> 0:10:50.680 got a little more flexibility to take on some of 0:10:50.679 --> 0:10:51.560 that additional works. 0:10:51.960 --> 0:10:53.839 You're connected. It's so much easier to connect, and you 0:10:54.080 --> 0:10:57.240 mentioned rural America, Matt, think about something like starlink and 0:10:57.280 --> 0:11:00.400 how it's easier to get good internet service in almost 0:11:00.440 --> 0:11:01.959 any part of the country guardless of. 0:11:01.880 --> 0:11:02.360 Where you are. 0:11:02.400 --> 0:11:04.840 Even if you're off grid somewhere else, you can still 0:11:04.840 --> 0:11:07.760 have internet access. It's easier than ever to start working 0:11:07.800 --> 0:11:10.160 for yourself, even if it's like only part time for 0:11:10.200 --> 0:11:14.960 a while. Something like eighty percent of businesses are solopreneur businesses, 0:11:15.000 --> 0:11:18.520 and we are personally big fans of starting your own thing, 0:11:18.559 --> 0:11:22.320 and so if you are considering hanging your own shingle, 0:11:22.360 --> 0:11:24.360 we would recommend for you to listen back to episode 0:11:24.360 --> 0:11:25.200 eight eight four week. 0:11:25.360 --> 0:11:26.600 You know, we tied some of the benefits. 0:11:26.600 --> 0:11:29.040 We talked with guests Laura Adams about maybe why it 0:11:29.080 --> 0:11:30.400 is that you should consider. 0:11:30.240 --> 0:11:31.000 Working for yourself. 0:11:31.080 --> 0:11:33.440 Yeah, and she gave a lot of great insights for 0:11:33.880 --> 0:11:37.160 how to go about launching that business and then specifically 0:11:37.200 --> 0:11:40.240 as a small business owner too as this wholopreneur kind 0:11:40.240 --> 0:11:41.520 of some of the things you need to know. So 0:11:41.640 --> 0:11:44.320 that's definitely worth listening to, Matt. One of the reasons 0:11:44.320 --> 0:11:48.160 people often choose to not go work for themselves is 0:11:48.200 --> 0:11:50.800 because their healthcare is tied to their job. Right, A 0:11:50.840 --> 0:11:53.280 lot of people continue working for the man because they're like, 0:11:54.080 --> 0:11:56.120 how am I going to pay this twenty five thousand 0:11:56.080 --> 0:12:01.120 dollars healthcare premium annual premium for my family if I 0:12:01.280 --> 0:12:03.360 go out and work for myself, and it is that 0:12:03.559 --> 0:12:06.560 is I will admit, one of the toughest hurdles to 0:12:06.679 --> 0:12:09.679 jump when we're talking about going out and starting your 0:12:09.679 --> 0:12:12.760 own thing. It's a terrible economic reality in this country 0:12:12.960 --> 0:12:17.480 that reduces entrepreneurship and it inhibits economic dynamism, and it's 0:12:17.480 --> 0:12:19.319 one of the reasons I think that health care costs 0:12:19.360 --> 0:12:22.679 are rising much faster than almost everything else, the employer 0:12:23.040 --> 0:12:26.319 involvement in individual and family health care in this country, 0:12:26.679 --> 0:12:30.160 and as everyone knows, buying healthcare as a self employed 0:12:30.200 --> 0:12:32.640 person is tough. Is so much of how much it 0:12:32.640 --> 0:12:35.079 costs depends on your income because of subsidies on the 0:12:35.120 --> 0:12:37.880 healthcare exchange. A lot of people, including you and I Maatt, 0:12:37.880 --> 0:12:42.520 have opted for health sharing companies because they're not traditional insurance. 0:12:42.880 --> 0:12:45.439 But because of that they can save you a bundle 0:12:45.960 --> 0:12:48.280 with some pitfalls as well that you have to be 0:12:48.320 --> 0:12:51.320 aware of. But some employers have actually started taking a 0:12:51.320 --> 0:12:55.320 different approach and so instead of providing actual healthcare and saying, hey, 0:12:55.360 --> 0:12:57.800 here's the plan that we offer once you sign up, 0:12:57.800 --> 0:12:59.559 and we're an open enrollment season right now for a 0:12:59.559 --> 0:13:02.080 lot of people, well, they're offering you money instead to 0:13:02.120 --> 0:13:04.920 get your own plan on the private market. I like 0:13:04.960 --> 0:13:08.120 this so much more. You know, more employees are interested 0:13:08.200 --> 0:13:11.439 essentially in lessening their own financial burden because how much 0:13:11.480 --> 0:13:14.600 premiums have gone up, And it does give employees more 0:13:14.760 --> 0:13:16.600 choice over the type of coverage and the type of 0:13:16.600 --> 0:13:19.360 plan that they choose to have. But I will say 0:13:19.360 --> 0:13:22.680 this too, where it's happening, it could be end up 0:13:22.720 --> 0:13:25.079 being a financial loser for some folks. Depending on how 0:13:25.160 --> 0:13:28.600 generous the healthcare stipend is, you might find that you're 0:13:28.640 --> 0:13:30.800 not able to buy as nice of a health care 0:13:30.840 --> 0:13:33.720 policy that maybe doesn't cover quite as much with the 0:13:33.760 --> 0:13:36.920 new stipend. It's good for employers. I think it can 0:13:37.040 --> 0:13:39.560 help you make wise decisions when you're shopping for insurance, 0:13:39.559 --> 0:13:41.560 but you also might find that there's a gap there 0:13:41.760 --> 0:13:43.640 between the coverage you used to get and the coverage 0:13:43.640 --> 0:13:46.559 you can now afford. So ultimately, wouldn't it be nice 0:13:46.600 --> 0:13:49.560 if we were able to disentangle healthcare from employment altogether. 0:13:49.559 --> 0:13:51.160 I think it'd be good for our country. It'd be 0:13:51.200 --> 0:13:55.080 good for small businesses, but good for the dynasism. Yeah, 0:13:55.160 --> 0:13:55.960 that's dynamism. 0:13:58.320 --> 0:14:01.720 It was like combining cynicism and I guess a dynamic 0:14:01.960 --> 0:14:05.000 labor market perhaps. But something else that is at least 0:14:05.000 --> 0:14:08.360 partially connected to your job is your retirement account. We're 0:14:08.360 --> 0:14:11.640 talking about four to one ks here. Well, changing jobs 0:14:11.880 --> 0:14:15.600 can also have adverse effects on your retirement and the 0:14:15.640 --> 0:14:17.960 reason for that is because there is some new research 0:14:18.000 --> 0:14:20.600 from Vanguard and they find that when people switch jobs, 0:14:21.000 --> 0:14:23.600 and even if it's to snack a bigger paycheck, they 0:14:23.640 --> 0:14:25.680 often end up forgetting to sign up for the new. 0:14:25.520 --> 0:14:28.400 Four to one K plan rookie fail or. A lot of. 0:14:28.320 --> 0:14:32.400 Employers are auto enrolling their newer employees, but sometimes the 0:14:32.400 --> 0:14:34.640 default rate is only three percent. And let's say you're 0:14:34.680 --> 0:14:37.200 at your previous employeer, maybe you're up to I don't know, 0:14:37.280 --> 0:14:40.920 six seven, eight percent perhaps maybe more, maybe even more. Yeah, 0:14:40.960 --> 0:14:42.920 And because of that, Vanguard says that this could be 0:14:42.960 --> 0:14:46.280 easily this could be a six figure mistake, costing folks 0:14:46.440 --> 0:14:50.320 massive money and compounding over the coming decades because of 0:14:50.320 --> 0:14:55.000 that reduced contribution amount, because of subsequent inertia bias as well. 0:14:55.080 --> 0:14:56.480 You just kind of stick with what it is that 0:14:56.560 --> 0:15:00.000 was the default option, and you're missing out. Future you 0:15:00.080 --> 0:15:02.120 is missing out. And so if you're changing jobs, just 0:15:02.120 --> 0:15:04.480 make sure that you pay close attention to what your 0:15:04.520 --> 0:15:07.960 prior contribution percentage was. And what we would suggest is 0:15:08.000 --> 0:15:10.600 just try to mirror that at your new employer, right, 0:15:10.680 --> 0:15:13.120 just carry over some of those good habits or even 0:15:13.120 --> 0:15:15.560 consider raising it, especially if you are making more money, 0:15:15.560 --> 0:15:16.680 because it's like, hey. 0:15:16.920 --> 0:15:17.720 It's a perfect time. 0:15:17.840 --> 0:15:19.280 It's a perfect time for you to sort of trick 0:15:19.320 --> 0:15:22.800 yourself into thinking that, oh, well, it's not actually painful 0:15:22.840 --> 0:15:24.640 at all for me to increase how much I'm saving 0:15:24.920 --> 0:15:28.280 because my paycheck it's staying the same, and so you're 0:15:28.320 --> 0:15:29.880 able to save more or you know what, a lot 0:15:29.880 --> 0:15:32.080 of folks with the raise, they're able to do both. 0:15:32.200 --> 0:15:35.640 You experience a slightly fatter paycheck but not over the top, yeah, 0:15:35.680 --> 0:15:38.640 while at the same time experiencing higher amounts of saving 0:15:38.680 --> 0:15:40.040 as it's going towards your Form one K. 0:15:40.200 --> 0:15:41.760 This was something I like, the both and approach. 0:15:41.840 --> 0:15:44.320 Yeah, it's funny, this is something I hadn't really thought about, Like, oh, 0:15:44.400 --> 0:15:46.600 over the years, you've been increasing your four one K 0:15:46.680 --> 0:15:49.440 contribution percentage. You started out at five. Let's say by 0:15:49.480 --> 0:15:51.000 the time you left that job, you got it up 0:15:51.040 --> 0:15:53.760 to twelve or thirteen percent. Amazing. But then you get 0:15:53.800 --> 0:15:56.080 the new job, you're auto enrolled at three and you 0:15:56.120 --> 0:15:58.640 just let it be. I just never thought that was 0:15:58.640 --> 0:16:00.920 a problem. Vanguard points out that it's a meaningful problem. 0:16:00.920 --> 0:16:04.280 So if you're switching jobs, definitely pay attention to this, because, yeah, 0:16:04.320 --> 0:16:08.320 if you're reducing your contribution amount by that much, we 0:16:08.360 --> 0:16:11.120 are talking about a potential six figure deficit when it 0:16:11.120 --> 0:16:12.480 comes to your future retirement. 0:16:12.640 --> 0:16:14.160 But Joe, we got more to get to. We're gonna 0:16:14.160 --> 0:16:17.160 talk about the types of landlords who are the worst. 0:16:17.360 --> 0:16:19.000 We'll get to that more right after this. 0:16:26.920 --> 0:16:28.600 All right, Matt, we're back. We've got more to get to. 0:16:28.840 --> 0:16:30.800 We will talk about preming landlords and no, it's not 0:16:30.840 --> 0:16:33.600 gonna be a self owned Okay, we're decent landlords people. 0:16:33.880 --> 0:16:36.240 But now let's get to the ludacrous headline of the week. 0:16:36.560 --> 0:16:40.120 This one comes from CNN and the headline reads, couple 0:16:40.240 --> 0:16:43.480 in severe uber crash can't sue because of an uber 0:16:43.480 --> 0:16:47.720 eats order, And that sounds really frustrating, Matt, and basically 0:16:48.240 --> 0:16:53.040 My takeaway from this article is Uber sucks, but they're 0:16:53.040 --> 0:16:56.320 also not alone and sucking. They're acting like most other companies. 0:16:57.200 --> 0:16:59.640 And what do most other companies do. They stick arbitration 0:16:59.800 --> 0:17:03.840 agreements in the terms of service that we all sign 0:17:04.240 --> 0:17:07.199 but that none of us actually read. And the couple 0:17:07.320 --> 0:17:11.760 in this attempted lawsuit was severely injured, including spinal fractures, 0:17:11.800 --> 0:17:16.080 which sounds terrible, after the uber they were riding in 0:17:16.160 --> 0:17:18.960 was in an accident. And then Uber's response essentially is 0:17:19.320 --> 0:17:21.720 tough luck. You got to go through the system we've 0:17:21.720 --> 0:17:25.920 set up that's essentially designed to screw you. So what's 0:17:25.960 --> 0:17:28.639 so bad about arbitration, you might be wondering, Well, the 0:17:28.720 --> 0:17:31.760 deck is stacked against the individual in the case of arbitration, 0:17:32.240 --> 0:17:35.080 the arbitrator. This is The New York Times did this 0:17:35.119 --> 0:17:38.040 investigation a few years back, Matt. The New York Times 0:17:38.160 --> 0:17:41.560 essentially found that arbitration finds in favor of the company 0:17:41.600 --> 0:17:45.600 eighty plus percent of the time. So you, as an individual, 0:17:45.640 --> 0:17:47.640 you could be spending a lot of money in arbitration 0:17:48.080 --> 0:17:49.879 and you're not getting a fair shake here. You're not 0:17:49.920 --> 0:17:53.320 getting a fair hearing. Companies avoid paying out billions of 0:17:53.359 --> 0:17:56.920 dollars to consumers by using the arbitration system to their advantage. 0:17:56.960 --> 0:17:59.439 So this is one of those clauses that's in the 0:17:59.480 --> 0:18:02.879 fine print of every terms of service that we all 0:18:02.960 --> 0:18:06.200 automatically ascribe to. I think it's important to point that out, 0:18:06.280 --> 0:18:08.480 and I think it's also important for us to highlight 0:18:08.520 --> 0:18:11.560 when companies are using it in a way that's improper. 0:18:11.600 --> 0:18:14.440 And part of this was the couple said that what 0:18:14.680 --> 0:18:16.959 was their daughter who signed up and made that order 0:18:17.000 --> 0:18:20.280 through Uber eys It wasn't even them, and Uber saying nope, sorry, 0:18:20.280 --> 0:18:22.280 it was under the household or whatever. We're holding you 0:18:22.359 --> 0:18:22.639 to this. 0:18:22.920 --> 0:18:25.679 Yeah, the terms of service agreements that we have to 0:18:25.720 --> 0:18:28.399