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Speaker 1: Welcome to Had of Money. I'm Joel and I am Matt.

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

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Speaker 2: That's right, everyone, listener questions on the way. We hope

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Speaker 2: everyone had a fantastic weekend and that you already buckle

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Speaker 2: in with us here at the beginning of this week.

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Speaker 1: With listener questions. If you're not more than forty eight

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Speaker 1: inches tall, you will not be allowed to ride. You

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Speaker 1: cannot ride the how To Money train. You see the

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Speaker 1: disappointment on my kids face when they face that, Like,

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Speaker 1: I think they're all basically, well, I don't know, the

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Speaker 1: six year old maybe not a fite tall enough to

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Speaker 1: ride some of the last time you into six lags

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Speaker 1: or something. Yeah, it's been a while, No, it's been

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Speaker 1: a while. I just remember the other faces when they're like, wait,

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Speaker 1: I can't after wedding in line for the scorcher yeah,

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Speaker 1: or something like that, and you're like, oh, actually too short,

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Speaker 1: and well then sometimes they're like, actually that's good. I

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Speaker 1: was a little scared, so they're thankful they couldn't ride.

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Speaker 2: What you don't want is for there to be some

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Speaker 2: teenager who's just like, it doesn't matter, they can ride,

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Speaker 2: and you're.

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Speaker 1: Like, actually sure about that? Okay, I am changing my

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Speaker 1: mind now and we are no longer going.

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Speaker 2: To visit this establishment because I value our safety when

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Speaker 2: it comes to these carnival rides. Yeah, on steroids. But Joel,

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Speaker 2: we're gonna hear from the richest How to Money podcast

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Speaker 2: listener I think of all time.

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Speaker 1: I'm actually really excited. Did Warren finally read out.

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Speaker 2: Warren by someone else? Another listener is wanting to know

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Speaker 2: what he should do with higher healthcare premiums and someone

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Speaker 2: else he's considering long term disability, whether or not he's

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Speaker 2: a good candidate for that, plus other questions during our

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Speaker 2: episode today.

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Speaker 1: Buddy, all right, looking forward to it. Oh, I came

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Speaker 1: across this article about economists painting saying, hey, you know what,

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Speaker 1: for kids who are dropping out in certain school districts,

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Speaker 1: may be the best way to get them to finish

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Speaker 1: their degree, their high school degree in particular, is to

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Speaker 1: pay them to stay in cool. And I think that

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Speaker 1: isn't that just so novel?

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Speaker 2: I mean, I think there have been like a very

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Speaker 2: that's totally the economist's answers yes to an issue with education.

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Speaker 2: I feel like, you know, this reminds me of so

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Speaker 2: one of the charities that I donate to. That's a

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Speaker 2: part of give Well, it's new incentives, which is where

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Speaker 2: they provide cash payments for parents who bring their kids

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Speaker 2: to get these shots and to get these different vitamin

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Speaker 2: what are it call it not injections like supplements, Yeah,

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Speaker 2: supplements in order for them to develop properly. And because

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Speaker 2: they don't understand that, oh, these things are necessary and

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Speaker 2: so but what they do understand is that, oh, if

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Speaker 2: I receive money, then that's a good thing.

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Speaker 1: So yeah, they show up. So it sounds like you're

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Speaker 1: probably you'd probably be in favor of this, especially in

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Speaker 1: like places where you see reduced graduation statistics, right, I think,

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Speaker 1: or like, do you think this is a good idea?

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Speaker 1: I guess I'm kind of mixed on it, but I

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Speaker 1: do think. I mean, I think it could even like

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Speaker 1: perpetuate a problem where kids are like, yeah, I'm failing

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Speaker 1: on purpose, so I can get paid to stay kind

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Speaker 1: of thing. There's certainly that possibility. But I do think

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Speaker 1: when we incentivize the behavior we want to see, and

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Speaker 1: particularly when you look at the numbers of at least

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Speaker 1: getting a high school diploma, people are much more successful

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Speaker 1: when they have a high school degree than if they

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Speaker 1: don't matriculate. I agree, Like, it does not surprise me

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Speaker 1: that this might work.

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Speaker 2: I think the bigger question than though, is is this

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Speaker 2: the best way to encourage kids to stay in school?

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Speaker 1: Yeah, because you'd rather have like a mascot that's just

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Speaker 1: pointing the finger and be like stay in school kids, maybe,

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Speaker 1: or like scared straight like the Dare campaign, but for

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Speaker 1: staying in school. Yeah. No. Like.

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Speaker 2: What I don't like is that it makes it a

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Speaker 2: completely financial like. It makes it a transactional sort of

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Speaker 2: a financial transaction, I guess, as opposed to like the

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Speaker 2: higher calling of explaining to kids what staying in school

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Speaker 2: allowed like provides for you, not just from a financial standpoint. Yes,

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Speaker 2: most definitely is important and they need to know that, Hey,

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Speaker 2: if you stay in high school, this is what you're

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Speaker 2: likely to earn. This is how much more you're likely

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Speaker 2: to earn if you'd graduate with a high school diploma.

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Speaker 1: Oh, if you then make it to a four year

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Speaker 1: degree for your college and then graduate with your bachelor's degree,

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Speaker 1: this is how much more you're likely to make.

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Speaker 2: Like, that is important information, but even that, there's still

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Speaker 2: it still feels transactional as opposed to trying to And

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Speaker 2: this is a much harder argument to make, but I

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Speaker 2: think one that is worth making in the United States,

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Speaker 2: which is, hey, we need to convince kids and make

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Speaker 2: them aware of who they are becoming by staying in school,

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Speaker 2: right like this, and this is ultimately going to turn

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Speaker 2: into like a classical education kind of argument, but like

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Speaker 2: the things like, if you make it about the money,

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Speaker 2: then going to school is purely in order to satisfy

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Speaker 2: your desire to make money at some point, as opposed

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Speaker 2: to recognizing who you are becoming by putting yourself under

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Speaker 2: a teacher who's excited about a subject matter, who can

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Speaker 2: teach you about some of these great books about kids

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Speaker 2: who are learning that you know, the true, good, beautiful

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Speaker 2: things out there like that is a harder again, a

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Speaker 2: harder argument, but I think a much higher calling. And

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Speaker 2: this is also where I think it is a little

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Speaker 2: bit different from other countries who where there is not

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Speaker 2: as much knowledge when it comes to health preventative steps

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Speaker 2: that families can take when it comes to supplements, right

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Speaker 2: because there's just a communication breakdown.

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Speaker 1: Everybody listening to a podcast knows about ag one already.

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Speaker 1: You know that's true. And in the States.

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Speaker 2: There's enough conversation around that, but I feel like it's

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Speaker 2: also when it comes to education. There is an education

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Speaker 2: problem with education, Like people need to be informed as

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Speaker 2: to why it is we're going to school. It's not

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Speaker 2: just to be able to be able to graduate and

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Speaker 2: make money. That's about some of these higher, bigger, beautiful

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Speaker 2: things that kids are learning and ultimately becoming.

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Speaker 1: I think you're also giving it something to where we

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Speaker 1: just need to make school better, more interesting, attract better teachers.

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Speaker 1: And part of what's happening right now is an exodus

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Speaker 1: of great teachers from the profession. And gosh, just feels

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Speaker 1: like kind of a sidewinder topic for us a little bit.

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Speaker 1: But this, I think the more we make school a

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Speaker 1: place where kids are excited to be, the less we'll

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Speaker 1: have to like pay them to stay in it. It's like, hey,

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Speaker 1: stay in this thing that you hate because the education

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Speaker 1: isn't great or you don't feel like you're enthusiastic about learning.

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Speaker 1: Maybe you actually change the front end of that equation

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Speaker 1: to make it more exciting to be in school and

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Speaker 1: to learn. And I think what you're there's a lot

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Speaker 1: of teachers, by the way, who listen to this podcast

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Speaker 1: who are doing just that in their classrooms.

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Speaker 2: Oh absolutely, But I'm sure they would also agree that, like, well,

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Speaker 2: we're not paid enough, and so it's hard to get

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Speaker 2: excited about the subject matter when we are barely scraping by.

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Speaker 2: It's hard to get excited when I'm teaching in a

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Speaker 2: district or a school where maybe the you know, the

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Speaker 2: families aren't necessarily bought in as well. But what I

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Speaker 2: was going to say was, I think what you're also

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Speaker 2: maybe saying, you're not suggesting like there should be more

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Speaker 2: games and let's make this more attractive on the surface screens,

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Speaker 2: no now as opposed to finding again like anchoring what

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Speaker 2: it is the kids are learning about to sort of

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Speaker 2: some of these bigger, more ultimate truths, which is like,

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Speaker 2: that's why I said there's like an education problem. I

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Speaker 2: think with education because it's difficult to communicate that well

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Speaker 2: to families when it doesn't feel like they've got a

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Speaker 2: whole lot of time to pay attention. And I'm just

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Speaker 2: something like that.

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Speaker 1: I'm sure you same with me, and most of our

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Speaker 1: listeners could point to at least a teacher or two

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Speaker 1: who had just a significant impact on our lives. Absolutely,

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Speaker 1: especially maybe in a subject matter we were curious about but

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Speaker 1: felt a little dense in and they just like lifted

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Speaker 1: the veil from our eyes and we're like, oh my gosh,

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Speaker 1: I get Shakespeare now, this is cool and so yeah,

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Speaker 1: great teachers, I think is it's a big part of that. Yeah,

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Speaker 1: I will say too.

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Speaker 2: I mean, so both Joel and I are fans of

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Speaker 2: classical education to one degree or another. We have varying

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Speaker 2: degrees of involvement. But if you are, if you've got

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Speaker 2: questions for us, head us up.

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Speaker 1: This is something we love to talk about when we're

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Speaker 1: not talking about personal fiance. That's true. Oddly enough, I

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Speaker 1: think a lot might surprise a lot of folks. But yeah,

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Speaker 1: email us. So it's on the comeback too. All right,

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Speaker 1: let's mention the beer we're having on today's episode, Matt.

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Speaker 1: This is called Shift. It's by Incendiary, actually brow experimental experimental.

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Speaker 1: Shift missed the small type. Well, the purple kind of

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Speaker 1: blended in my eyes are getting old. We'll have our

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

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Speaker 1: If you have a money question, please send it our way.

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Speaker 1: Just record a voice memo on the app of your phone,

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Speaker 1: send it over to us via email. How to mooneypod

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Speaker 1: at gmail dot com. Say your name at the beginning.

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Speaker 1: We like to hear who were getting the question from,

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Speaker 1: and Matt, let's get to our first question. You said

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Speaker 1: this is from the richest how to money listener, ever,

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Speaker 1: it sure is. Let's hear this question, ay man Joel.

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Speaker 3: My name is Chris. I wanted to submit this for

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Speaker 3: my husband and our family to prepare for his company selling.

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Speaker 3: And I'm just gonna throw out a number of three

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Speaker 3: hundred million, not after taxes. I'm just assuming at this point,

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Speaker 3: but if you could help us prepare for what we

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Speaker 3: should do with that type of money. We are putting

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Speaker 3: some money obviously into investments, but beyond that, we really

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Speaker 3: don't know what to do.

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Speaker 4: We've really just.

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Speaker 3: Had money in the company and to set ourselves up

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Speaker 3: for the future.

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Speaker 4: That's where we're investing.

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Speaker 3: But for income still coming in and money to be

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Speaker 3: able to use until we hit retirement, We're not sure

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Speaker 3: what to do. We obviously need money for paying for

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Speaker 3: our own insurance now, things like paying for vehicles, paying

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Speaker 3: for insurance for the vehicles, just everyday living. So if

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Speaker 3: you have any advice on kind of what the best

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Speaker 3: route to go is for just passive income, because I

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Speaker 3: don't think either one of us is necessarily going to

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Speaker 3: want to work after this, possibly something, But.

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Speaker 4: Yeah, we would love your advice so much on this.

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Speaker 3: It's kind of scary to be done doing something that

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Speaker 3: you know you're going to for years. And uh yeah,

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Speaker 3: taking a.

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Speaker 4: Whole new route for contacts.

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Speaker 3: We are in our early thirties, so we do have

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Speaker 3: always to go until we get our insurance later on

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Speaker 3: in quote unquote retirement age.

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Speaker 4: Thank you so much, love your eye show.

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Speaker 3: You guys have helped us out so much over the years,

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Speaker 3: So thank you for everything you do for people and

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Speaker 3: for all your advice.

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Speaker 4: Cheers.

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Speaker 1: Today's the day Matt became a financial advisor and started

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Speaker 1: charging in one percent assets under management fee. Holy cow,

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Speaker 1: this is insane. Yeah, I'm almost speechless as to how

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Speaker 1: it is we should respond to a listener Chris here

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Speaker 1: and the three hundred million thing sounded slightly theoretical but

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Speaker 1: also probably in the ballpark of what they're going to

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Speaker 1: be dealing with. And yeah, yeah, let's be honest. I mean,

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Speaker 1: you hate so much money anything of the cow. I know, like,

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Speaker 1: we'll do our best answer to this question. But also

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Speaker 1: we're just going to kind of offer some general rules

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Speaker 1: of thumb, because I mean, yeah, there's a lot of

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Speaker 1: detail you can and should get into it a point.

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Speaker 2: I mean, I feel like we should readily admit too

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Speaker 2: that this is a level of wealth that very few

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Speaker 2: people come in possession of.

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Speaker 1: Nor is it I don't know, do the same rules apply.

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Speaker 1: I guess we'll kind of figure this out we as

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Speaker 1: we get to this answer.

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Speaker 2: But I wanted to first start off by saying that Chris,

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Speaker 2: the fact that you reached out to us, like there

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Speaker 2: is an immense amount of trust. I feel like even

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Speaker 2: by emailing us, And I mean, I would don't speak

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Speaker 2: for myself, but I think I'm speaking for both of

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Speaker 2: us that we are honored that you would even want

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Speaker 2: to hear our opinion as to what you should do

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Speaker 2: with this with this sum of money, And so to

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Speaker 2: that end, I would say, the first thing that I

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Speaker 2: would make sure to do is to not post this

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Speaker 2: on social media.

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Speaker 1: Yeah, Like, I would be extremely careful as to who

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Speaker 1: it is that you're telling about this, And it's kind

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Speaker 1: of like winning the lotto and telling everybody you know,

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Speaker 1: and like that can just do things for relationships that

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Speaker 1: you want to avoid. Yeah.

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Speaker 2: Absolutely, But that being said, you reached out to us

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Speaker 2: and you told us, and so I don't know, I

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Speaker 2: feel like that there's there is a level of trust

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Speaker 2: that you even dowed upon us.

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Speaker 1: I'm thankful. She mentioned her email. I think her husband

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Speaker 1: started this company was fifteen. So this is also some

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Speaker 1: people might be like, oh, man, must be nice. But

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Speaker 1: also it's it's many many. It's like, you know, almost

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Speaker 1: twenty years of incredibly hard work building this business at

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Speaker 1: this point. Still most people who build a business are

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Speaker 1: not going to experience an exit like this. But I mean,

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Speaker 1: I mean three hundred million dollars post taxes is what

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Speaker 1: she said. I think one first thing I want to

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Speaker 1: mention is they should probably be working with an experienced

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Speaker 1: CPA who has done like business exit work yep, Like

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Speaker 1: because yeah, three hundred million post taxes incredible, But just

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Speaker 1: make sure also that you have somebody who's got their

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Speaker 1: eye on the ball when it comes to taxation. You

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Speaker 1: don't want to kind of get caught unawar. Yeah yeah, yeah,

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Speaker 1: and not just a CPA.

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Speaker 2: I would even say, like an experienced high net worth

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Speaker 2: tax a turn like somebody who can help you to

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Speaker 2: preserve this amount of money that you find yourselves in

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Speaker 2: possession of but like and I think what they might

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Speaker 2: help you to do as well is just to not

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Speaker 2: make any rash moves. I think for you, for you

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Speaker 2: and your husband, your family, taking like a cooling off

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Speaker 2: period would be really wise. I think, you know, it's

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Speaker 2: easy to feel like you should have a perfect plan

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Speaker 2: right out of the gate, right after the sale, but

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Speaker 2: it's I think it's not unlike the death of a

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Speaker 2: loved one right like, sometimes you might be too emotional.

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Speaker 1: To assess what is going to be best for you

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Speaker 1: in the moment.

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Speaker 2: What I'm getting at, though, is that you don't want

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Speaker 2: to like put this money in like your small local bank,

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Speaker 2: like you want to be looking to national, like big time,

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Speaker 2: well recognized banks that aren't going to be failing with

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Speaker 2: this sum of money that they might have on hand.

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Speaker 2: And actually it might be worth looking at. There's a

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Speaker 2: company Intrify, and they use these protocols, the systems that

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Speaker 2: funnel all of your money to not just one bank,

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Speaker 2: but to hundreds of banks in one fell swoop. Basically

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Speaker 2: like you open a single account, but then those funds

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Speaker 2: are divided out into amounts below two hundred and fifty thousand

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Speaker 2: dollars because that's the FDIC insured amount.

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Speaker 1: So especially the biggest risk essentially of like taking this

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Speaker 1: all one some one lump sum and even putting in

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Speaker 1: one of our favorite online banks. That's that's awesome, I

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Speaker 1: guess unless something happens to the financial system, the bank

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Speaker 1: goes bust and the government says, oh, well, every dollar

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Speaker 1: you had above two hundred and fifty grand, sorry, you

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Speaker 1: don't get you don't get to keep that that vanished.

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Speaker 2: Not likely to happen, but like, that's that's the reality

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Speaker 2: that you're dealing with with this amount of money on hand.

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Speaker 1: So this is what you're referring to through interrovise called seedars.

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Speaker 1: Will put a link to that in the show notes.

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Speaker 1: But that is a way where you can kind of

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Speaker 1: in one fell swoop. It feels like opening one account,

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Speaker 1: but you get one statement while your money is dispersed

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Speaker 1: around to a bunch of different banks, ensuring that every

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Speaker 1: dollar remains FDIC insured.

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Speaker 2: And again preserving the money and having it to remain

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Speaker 2: Like I feel like that is your number one goal

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Speaker 2: right now with this sum. And that again going back

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Speaker 2: to like getting an experienced CPA or a tax attorney,

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Speaker 2: like you need to be putting together a team of

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Speaker 2: folks who understands the ins and outs here to help

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Speaker 2: you to essentially create like this. It's like you are

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Speaker 2: creating a how like a structure, like you're creating a

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Speaker 2: wealth architecture, and someone who is experienced can help you

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Speaker 2: to put something like that together in order to serve

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Speaker 2: you and your family for the long haul.

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Speaker 1: Which makes you think, if you don't have a financial planner,

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Speaker 1: that's something worth considering. We'll talk more about that in

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Speaker 1: a second, but I think even before that, Matt, thinking

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Speaker 1: about goals and dreams is a really important part of

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Speaker 1: what you do in the aftermath of a business exit too.

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Speaker 1: Like Chris mentioned, they've got kids, what do you want

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Speaker 1: for your kids? You might want to have an a

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Speaker 1: state attorney as part of your team because you're talking

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Speaker 1: about planning for the future. That might be another person

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Speaker 1: who you bring on to your team to manage this

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Speaker 1: money effectively and to help you. Sure, yeah, totally worth

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Speaker 1: paying all the professionals who are at the top of

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Speaker 1: their game. When again, when we're talking about the sum

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Speaker 1: of money, and you obviously don't want the money to

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Speaker 1: stay in cash for too long, Ultimately you're gonna want

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Speaker 1: to have different buckets, right, A few years worth it

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Speaker 1: stays in cash or cash equivalence that you can safely

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Speaker 1: withdraw from. You're gonna want to have other money that

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Speaker 1: you're willing to take risk with in the market in

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Speaker 1: order to grow it. And probably another bucket, right that's

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Speaker 1: thinking about the long term future, like goals for kids

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Speaker 1: or bigger philanthropic efforts which you might want to participate in.

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Speaker 1: But yeah, you can work through those things with your team,

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Speaker 1: But I think starting to think about goals and hopes

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Speaker 1: and what you want to accomplish with this money, it's

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Speaker 1: really important to have those discussions now. Yeah, and I'm

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Speaker 1: sure you might be saying, yeah, we've had some conversations

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Speaker 1: like that, but I bet they have. I bet they're

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Speaker 1: gonna look different now, let's just be honest. I think

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Speaker 1: aside from.

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Speaker 2: Some of these like really large goals and sort of

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Speaker 2: like the kind of legacy you might want to leave,

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Speaker 2: I think it's worth thinking through like what you want

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Speaker 2: your ideal life to look like for you and your

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Speaker 2: family today. Like you know, I think it sounds like

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Speaker 2: it might be easy to just bag work all together.

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Speaker 2: But again with your husband, man, I'm guessing he's really driven,

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Speaker 2: and I'm guessing he has worked really hard for years,

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Speaker 2: if not decades, And I think going from you know,

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Speaker 2: pedal to the metal and all of a sudden bagging

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Speaker 2: work kicking back, I think someone with that kind of

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Speaker 2: drive might go a little crazy for not having something

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Speaker 2: like that that you are excited about.

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Speaker 1: And so going from nose to the grindstone to Pina

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Speaker 1: coladas can create like some depression or Yeah, I would

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Speaker 1: just think that would be a tough one I think

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Speaker 1: go through. I think it could.

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Speaker 2: Yeah, it could lead to some issues. And so I yeah,

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Speaker 2: thinking through what you want your your days to look like,

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Speaker 2: like your months, and even from year to year with

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Speaker 2: your kids, just what some of the different phases of

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Speaker 2: life might look like. And actually in your email you

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Speaker 2: mentioned something about buying property.

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Speaker 1: I think some of these.

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Speaker 2: Thoughts, if this is something that you're interested in and

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Speaker 2: excited about, makes a ton of sense, uh, in particular

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Speaker 2: again because it gives you an outlet of how it

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Speaker 2: is that you're going to be spending your time that way. Again,

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Speaker 2: you're not going from you know, one hundred miles per

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Speaker 2: hour down to zero.

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Speaker 1: I think, just like with folks, you have a lot

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Speaker 1: less money, but they're interested in trying things out as well.

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Speaker 1: It's important to like dip your toe in, right. So,

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Speaker 1: for instance, Chris Hearner family, they're going to have yacht

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Speaker 1: level money now, but instead of just like buying a yacht,

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Speaker 1: they might say, well, let me just rent one for

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Speaker 1: a month or something. A yacht is much more affordable

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Speaker 1: purchasing one. I've never done this myself. Yeah, this is

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Speaker 1: not within my depth of understanding some of the things

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Speaker 1: you have to pay attention to when you're renting a yacht.

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Speaker 1: But you got to think that there's similar to renting

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Speaker 1: an RV or something like that, before you go all

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Speaker 1: in and just buy a brand new one that that mitigates.

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Speaker 1: I think a lot of potential harm that you could

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Speaker 1: do to yourself by buying the thing and then not

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Speaker 1: using it. So just want to throw that out there.

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Speaker 1: Let's also talk about passive income. That was one of

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Speaker 1: Chris's main questions. There's just no need to over complicate things.

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Speaker 1: I don't think on this front. I mean, since you're

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Speaker 1: your coast fire on steroids, I'm assuming I don't know

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Speaker 1: all your expenses, but I'm assuming that this amount makes

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Speaker 1: you that, yes, you wouldn't have to invest anymore, right, Like,

402
00:18:59,440 --> 00:19:01,919
Speaker 1: still you want nest egg to grow for future spending future,

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Speaker 1: giving all that kind of stuff, Like, there's no reason

404
00:19:05,040 --> 00:19:07,080
Speaker 1: just to sit on it. I think a rough rule

405
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Speaker 1: of thumb is that you can spend something like four

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Speaker 1: and a half percent of the balance every year and

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Speaker 1: still never run out of money. That's like thirteen and

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Speaker 1: a half million dollars annually. We're yeah, where that money

409
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Speaker 1: invested in the market. So not sure what your spending

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Speaker 1: habits are, but that's probably far more than you need.

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Speaker 1: You might hear about annuities as part of planning. Most

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Speaker 1: are probably not worth considering, and the bulk of the

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Speaker 1: money should probably be in growth in long term buckets,

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Speaker 1: with just enough cash to cover current flexibility in some

415
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Speaker 1: of the like if you're going to buy properties, some

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Speaker 1: of that you don't want to invest it and then

417
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Speaker 1: pull it out when the market's down in order to

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Speaker 1: make that property purchase. You might want to keep that

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Speaker 1: in short to medium term buckets. She mentioned insurance too, Matt,

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Speaker 1: it's a good idea to increase your coverage. You might,

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Speaker 1: for instance, want a larger umbrella insurance policy just more yeah,

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Speaker 1: personal protection. That's right, and I think she was.

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Speaker 2: Was she asking about having to buy their own cars now,

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Speaker 2: like maybe before they had company cars and their insurance

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Speaker 2: was covered also by the company, Like, yeah, that's not

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Speaker 2: a problem anymore.

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Speaker 1: Yeah, Like, yes, you do have to pay your own

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Speaker 1: premiums now, but paying premiums on insurance is an expense

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Speaker 1: I would gladly pay with this amount of money, because again,

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Speaker 1: the name of the game now is for the most

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Speaker 1: part about protection and preservation of that money. And to

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Speaker 1: that extent, I would find finding joy without letting it

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Speaker 1: overwhelm you too. Yeah, yep, gosh, this is such a

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Speaker 1: big question, the big conversation that to have. We're not

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Speaker 1: I feel like we're not even really touching on the

436
00:20:33,720 --> 00:20:35,879
Speaker 1: the joy bottom line, Like you have the money on

437
00:20:35,960 --> 00:20:38,160
Speaker 1: hand now, right, Like I feel like finding the joy.

438
00:20:38,240 --> 00:20:41,359
Speaker 1: Like that's a conversation that's great to have with folks

439
00:20:41,400 --> 00:20:44,720
Speaker 1: who are in pursuit of money as to whether or

440
00:20:44,760 --> 00:20:47,840
Speaker 1: not that's going to bring about lasting happiness. But the

441
00:20:47,880 --> 00:20:50,119
Speaker 1: fact is you got the money, and so let's just

442
00:20:50,160 --> 00:20:54,160
Speaker 1: make sure that it doesn't slip through your fingers like water.

443
00:20:54,280 --> 00:20:56,600
Speaker 1: But I want you to find an advisor to work with,

444
00:20:56,960 --> 00:20:58,760
Speaker 1: and one of the things you mentioned in your email

445
00:20:58,880 --> 00:21:01,280
Speaker 1: was not wanting to become a lottery winner, which I

446
00:21:01,359 --> 00:21:03,320
Speaker 1: totally get that is a real risk.

447
00:21:03,800 --> 00:21:07,480
Speaker 2: A massive just cash influx can seem like a blessing,

448
00:21:07,520 --> 00:21:10,120
Speaker 2: but it can quickly feel like a burden. And man,

449
00:21:10,160 --> 00:21:12,120
Speaker 2: if it was me, I'd be careful who I'm telling

450
00:21:12,160 --> 00:21:12,600
Speaker 2: about it.

451
00:21:12,760 --> 00:21:13,640
Speaker 1: But having a.

452
00:21:13,600 --> 00:21:17,760
Speaker 2: Trusted advisor could provide you with a sounding board someone

453
00:21:17,840 --> 00:21:20,040
Speaker 2: to also discuss those hopes and dreams with, so you

454
00:21:20,040 --> 00:21:24,719
Speaker 2: can just take a more dialed in approach to your money,

455
00:21:24,760 --> 00:21:27,800
Speaker 2: to your investments and uh yeah, how much you can

456
00:21:27,840 --> 00:21:31,080
Speaker 2: actually regularly tap while continuing to grow that nest egg

457
00:21:31,400 --> 00:21:33,760
Speaker 2: for future goals that you might have And we've mentioned

458
00:21:33,800 --> 00:21:39,399
Speaker 2: them before, but wealth ramp an incredible resource. Yeah, you

459
00:21:38,840 --> 00:21:42,960
Speaker 2: want to have a fiduciary ads advisor, Chris, But like, man,

460
00:21:43,480 --> 00:21:45,399
Speaker 2: you I hate to say this, but like you are

461
00:21:45,440 --> 00:21:48,600
Speaker 2: such a target now and you need like fiduciary everything now.

462
00:21:49,240 --> 00:21:53,680
Speaker 2: You know you need like fiduciary friends, fiduciary family, which

463
00:21:53,680 --> 00:21:55,920
Speaker 2: hopefully is maybe a bit redundant to say that, right,

464
00:21:56,560 --> 00:21:59,080
Speaker 2: sign a contract and butefull your family wants the best

465
00:21:59,119 --> 00:22:02,320
Speaker 2: for you. But things get weird when you're talking about

466
00:22:02,600 --> 00:22:04,159
Speaker 2: such a large sum of money.

467
00:22:04,359 --> 00:22:07,040
Speaker 1: Yeah, yeah, I mean it really anytime you look at

468
00:22:07,280 --> 00:22:10,760
Speaker 1: athletes like or just entertainers, people who get rich and

469
00:22:10,800 --> 00:22:14,880
Speaker 1: then their money can get between friendships and so part

470
00:22:14,880 --> 00:22:17,480
Speaker 1: of that is keeping it on the DL. Another part

471
00:22:17,560 --> 00:22:20,919
Speaker 1: is just having a philosophy about how you handle money

472
00:22:20,960 --> 00:22:25,080
Speaker 1: with the people you love around you. And yeah, I

473
00:22:25,080 --> 00:22:26,640
Speaker 1: mean I think that's one of the things I heard

474
00:22:26,720 --> 00:22:29,320
Speaker 1: mister Wonderful being interviewed Matt the guy from Shark Tank,

475
00:22:29,359 --> 00:22:31,040
Speaker 1: and he just talked about how that's like the hardest

476
00:22:31,040 --> 00:22:32,439
Speaker 1: part of having a lot of money is people come

477
00:22:32,480 --> 00:22:34,200
Speaker 1: to you out of the woodwork. They're wanting to borrow money,

478
00:22:34,200 --> 00:22:36,240
Speaker 1: they want you to invest in their startup, whatever it is.

479
00:22:36,920 --> 00:22:40,760
Speaker 1: And so yeah, the less you advertise your newfound wealth,

480
00:22:41,040 --> 00:22:45,760
Speaker 1: the better. But yeah, finding a top notch financial advisor,

481
00:22:45,760 --> 00:22:48,399
Speaker 1: I think is really important, not just finding an advisor, right,

482
00:22:48,440 --> 00:22:50,119
Speaker 1: And that's where wealth remp comes in. We'll link to

483
00:22:50,160 --> 00:22:52,119
Speaker 1: that in the show notes. Yep, We've got more to

484
00:22:52,119 --> 00:22:54,680
Speaker 1: get to on this episode. We'll talk about healthcare costs,

485
00:22:54,920 --> 00:22:57,560
Speaker 1: a lot of how to money listeners dealing with much

486
00:22:57,640 --> 00:22:59,560
Speaker 1: higher healthcare costs in twenty twenty six. We'll get a

487
00:22:59,640 --> 00:23:09,920
Speaker 1: question on that talk about rental properties. After this, All right, buddy,

488
00:23:09,960 --> 00:23:11,040
Speaker 1: we are back for the break.

489
00:23:11,080 --> 00:23:14,520
Speaker 2: We'll get to a classic four week match question here

490
00:23:14,640 --> 00:23:17,159
Speaker 2: in a second. But let's now hear from a listener

491
00:23:17,200 --> 00:23:20,239
Speaker 2: who is man. He's struggling to accept the fact that

492
00:23:20,280 --> 00:23:23,040
Speaker 2: he might be paying so much money to go towards

493
00:23:23,040 --> 00:23:23,880
Speaker 2: his health insurance.

494
00:23:24,400 --> 00:23:27,280
Speaker 5: Hey, Joelen Matt. This is Josh from Franklin, North Carolina,

495
00:23:27,320 --> 00:23:30,160
Speaker 5: about two hours north of you, guys. I was reaching out.

496
00:23:30,200 --> 00:23:32,520
Speaker 5: I'm just looking for another trusted opinion. I have spent

497
00:23:32,600 --> 00:23:36,760
Speaker 5: about a month now researching different options, and I don't

498
00:23:36,800 --> 00:23:39,480
Speaker 5: feel like I am confident in any decision that I'm

499
00:23:39,520 --> 00:23:42,560
Speaker 5: coming up with. My wife has a stay at home

500
00:23:42,640 --> 00:23:45,560
Speaker 5: mom with our two girls, and she has used the

501
00:23:45,600 --> 00:23:50,520
Speaker 5: healthcare marketplace, but with the recent subsidy changes, her health

502
00:23:50,520 --> 00:23:54,119
Speaker 5: care is looking to go up about threefold. So we

503
00:23:54,240 --> 00:23:57,280
Speaker 5: have been researching the health sharing plans like you guys

504
00:23:57,280 --> 00:24:01,000
Speaker 5: have discussed previously, like better Share. We're looking at the

505
00:24:01,000 --> 00:24:04,919
Speaker 5: healthcare marketplace and our different options there. We've also discussed

506
00:24:05,960 --> 00:24:09,640
Speaker 5: just coming out of pocket using f q HC our

507
00:24:09,640 --> 00:24:14,959
Speaker 5: local community hospitals, nonprofit hospitals, asking for cash prices, and

508
00:24:15,040 --> 00:24:18,520
Speaker 5: just paying out of our emergency fund and HSA funds.

509
00:24:20,160 --> 00:24:23,320
Speaker 5: The only problem there is it worries me if something

510
00:24:23,320 --> 00:24:26,800
Speaker 5: catastrophic happens. And I'm a little worried about the health

511
00:24:26,800 --> 00:24:30,919
Speaker 5: sharing plans because of the fact that there aren't necessarily

512
00:24:30,920 --> 00:24:34,359
Speaker 5: any regulations. But I just wanted to reach out to

513
00:24:34,359 --> 00:24:37,960
Speaker 5: you guys since since you have different opinions and you

514
00:24:38,040 --> 00:24:40,439
Speaker 5: have experience, you can share and I'm hoping you guys

515
00:24:40,640 --> 00:24:43,240
Speaker 5: might help point me in the right direction. Hope all

516
00:24:43,280 --> 00:24:47,480
Speaker 5: as well. Joel, keep logging those miles. If you'd like

517
00:24:47,520 --> 00:24:49,439
Speaker 5: to come up and march and run the Ashville Marathon,

518
00:24:49,520 --> 00:24:51,840
Speaker 5: just let me know. Thank you, guys, Thank you so

519
00:24:51,920 --> 00:24:52,560
Speaker 5: much for your time.

520
00:24:52,760 --> 00:24:53,560
Speaker 1: Bye.

521
00:24:53,720 --> 00:24:58,720
Speaker 2: I'm offended, Joel. I run sometimes you do, You're very fast.

522
00:24:59,040 --> 00:25:01,639
Speaker 2: Rarely I run, not nearly as much as you.

523
00:25:01,680 --> 00:25:03,399
Speaker 1: Well, should I run Nashville Marathon?

524
00:25:03,440 --> 00:25:03,720
Speaker 6: I don't know.

525
00:25:03,760 --> 00:25:06,600
Speaker 2: It sounds like, uh, if you're going to run a marathon,

526
00:25:07,359 --> 00:25:10,200
Speaker 2: I mean, there's got to be awesome breweries along the wall, right.

527
00:25:10,160 --> 00:25:11,840
Speaker 1: Like I think you would have to get time would

528
00:25:11,840 --> 00:25:15,159
Speaker 1: definitely be slower. You'd have to accept the fact that.

529
00:25:15,119 --> 00:25:18,040
Speaker 2: This is just just a really long fun run. Yeah,

530
00:25:18,280 --> 00:25:20,680
Speaker 2: as opposed to I'm going to set a pr. Yeah,

531
00:25:20,720 --> 00:25:22,680
Speaker 2: you can't be entering into that race with that kind

532
00:25:22,680 --> 00:25:24,760
Speaker 2: of headspace. Or maybe I have six peers and set

533
00:25:24,760 --> 00:25:26,720
Speaker 2: a PR and that's more power to you.

534
00:25:26,760 --> 00:25:26,879
Speaker 4: Man.

535
00:25:26,920 --> 00:25:29,320
Speaker 1: The best PR you can say, i'd be amazing. Well, Josh,

536
00:25:29,359 --> 00:25:33,119
Speaker 1: appreciate your question. You're obviously not alone in being essentially

537
00:25:33,119 --> 00:25:36,240
Speaker 1: assaulted by higher health care prices. This is something we've

538
00:25:36,240 --> 00:25:39,960
Speaker 1: documented on the show. For sure, people are scrambling as

539
00:25:40,000 --> 00:25:42,840
Speaker 1: subsidies decline. Price shock is setting in for a lot

540
00:25:42,880 --> 00:25:45,560
Speaker 1: of folks. Some people have enough whegel room right to

541
00:25:46,320 --> 00:25:49,040
Speaker 1: absorb those higher premiums in their lives, but many don't,

542
00:25:49,119 --> 00:25:52,240
Speaker 1: especially when you're talking about as significant of increases as

543
00:25:52,240 --> 00:25:55,520
Speaker 1: we're seeing, Matt. Some people are going from, oh, yeah,

544
00:25:55,520 --> 00:25:57,160
Speaker 1: I was paying three hundred dollars a month, and now

545
00:25:57,240 --> 00:25:58,639
Speaker 1: it's looking like I got to pay like seven or

546
00:25:58,640 --> 00:26:02,119
Speaker 1: eight hundred dollars a month. In pretty that's before you

547
00:26:02,200 --> 00:26:06,119
Speaker 1: get to right actually going to the doctor. Some people

548
00:26:06,160 --> 00:26:08,640
Speaker 1: are saying, you know what, I'm just gonna cancel health

549
00:26:08,640 --> 00:26:10,880
Speaker 1: insurance all together. I'm gonna see what happens to throw cross

550
00:26:10,920 --> 00:26:13,800
Speaker 1: from the wind. Others are opting for health sharing, So

551
00:26:13,840 --> 00:26:17,440
Speaker 1: this question is becoming more common, and well, it might

552
00:26:17,560 --> 00:26:20,159
Speaker 1: might not be ideal, right, the lack of regulation, especially

553
00:26:20,200 --> 00:26:22,560
Speaker 1: surrounding health sharing companies, A lot of folks I think

554
00:26:22,560 --> 00:26:26,360
Speaker 1: are gonna find they don't really have another better choice. Yeah, no, no,

555
00:26:26,480 --> 00:26:30,000
Speaker 1: I don't think there's really an ideal solution for most folks.

556
00:26:30,320 --> 00:26:33,360
Speaker 2: And yeah, Josh, you are right, the both of us,

557
00:26:33,359 --> 00:26:36,960
Speaker 2: both Joel and his family, my family, we are both

558
00:26:37,000 --> 00:26:40,040
Speaker 2: on health sharing plans, and not because it's like the

559
00:26:40,080 --> 00:26:43,240
Speaker 2: greatest thing since sliced bread, but because it just offers

560
00:26:43,280 --> 00:26:47,600
Speaker 2: the best balance I think of affordability married and coupled

561
00:26:47,600 --> 00:26:51,680
Speaker 2: with coverage, and so our annual premiums and technically they're

562
00:26:51,680 --> 00:26:54,479
Speaker 2: not premiums because this is not health insurance. I think

563
00:26:54,520 --> 00:26:55,480
Speaker 2: it's technically called like.

564
00:26:55,400 --> 00:26:59,520
Speaker 1: A household portion or household share. But those quote unquote

565
00:26:59,520 --> 00:27:01,639
Speaker 1: premiums are far less than they would be if we

566
00:27:01,640 --> 00:27:02,080
Speaker 1: were to get.

567
00:27:02,000 --> 00:27:04,879
Speaker 2: A plan on the exchange. Our family pays something like

568
00:27:04,920 --> 00:27:07,080
Speaker 2: a little over four thousand dollars, and the last time

569
00:27:07,080 --> 00:27:09,359
Speaker 2: I checked, we'd be paying in like the mid twenty

570
00:27:09,400 --> 00:27:10,320
Speaker 2: something thousand.

571
00:27:10,080 --> 00:27:14,960
Speaker 1: Dollars range just for family health insurance coverage. That's like

572
00:27:15,160 --> 00:27:17,200
Speaker 1: that's table stakes too, Like I said, that's like before

573
00:27:17,200 --> 00:27:19,520
Speaker 1: going to the doctor, so you're saying, okay, just from

574
00:27:19,600 --> 00:27:22,639
Speaker 1: a twenty twenty six perspective, can we afford twenty two

575
00:27:22,680 --> 00:27:26,000
Speaker 1: to twenty three thousand dollars more money? Dude? And so

576
00:27:26,200 --> 00:27:29,160
Speaker 1: I think most people, including ourselves, are gonna be like, ah, no,

577
00:27:29,280 --> 00:27:30,320
Speaker 1: we can't, we can't do that.

578
00:27:30,440 --> 00:27:33,520
Speaker 2: Yeah, And I will say, our families are mostly healthy,

579
00:27:33,560 --> 00:27:36,680
Speaker 2: so our healthcare spending beyond that has been pretty reasonable.

580
00:27:37,040 --> 00:27:40,680
Speaker 1: Reasonable, But still there is a degree.

581
00:27:40,480 --> 00:27:43,679
Speaker 2: Of risk, of additional risk that we're taking, that we're

582
00:27:43,720 --> 00:27:46,800
Speaker 2: shouldering ourselves in order to get these savings. And I

583
00:27:46,880 --> 00:27:49,399
Speaker 2: think not everyone who's listening is going to agree that

584
00:27:49,400 --> 00:27:51,440
Speaker 2: the trade off is worth it, but for us, it's

585
00:27:51,480 --> 00:27:51,960
Speaker 2: the right move.

586
00:27:52,240 --> 00:27:56,679
Speaker 1: It makes me think kind of of like what deductible

587
00:27:56,800 --> 00:28:00,000
Speaker 1: you keep on your home insurance, let's say, right, and similar,

588
00:28:00,160 --> 00:28:02,200
Speaker 1: I'm taking on a much higher risk by having the

589
00:28:02,320 --> 00:28:05,720
Speaker 1: percentage based deductible, and I've gotten bit in the butt

590
00:28:05,760 --> 00:28:08,600
Speaker 1: by in the past, but I'm hoping that and all

591
00:28:08,720 --> 00:28:11,320
Speaker 1: the statistics would show that I am likely to benefit

592
00:28:11,359 --> 00:28:14,280
Speaker 1: from it over time. And but for a lot of people,

593
00:28:14,280 --> 00:28:17,280
Speaker 1: they're like I just I can't stomach it, or I

594
00:28:17,320 --> 00:28:19,159
Speaker 1: don't have the savings to actually back me up in

595
00:28:19,200 --> 00:28:21,159
Speaker 1: case that something were to happen in my house, So

596
00:28:21,480 --> 00:28:24,119
Speaker 1: that is an important thing to take into consideration. And

597
00:28:24,200 --> 00:28:27,680
Speaker 1: Josh mentioned asking local hospitals for cash prices. That's great.

598
00:28:27,760 --> 00:28:31,360
Speaker 1: That's certainly part of the repertoire you're going to want

599
00:28:31,400 --> 00:28:34,959
Speaker 1: to instill if you go with health sharing that if

600
00:28:35,000 --> 00:28:36,800
Speaker 1: you kick health insurance the curb, you'd want to do

601
00:28:36,960 --> 00:28:40,680
Speaker 1: the same. But of course that's like the riskiest endeavor

602
00:28:40,680 --> 00:28:42,880
Speaker 1: you can make. But as he alludes to specifically, like

603
00:28:42,960 --> 00:28:46,120
Speaker 1: catastrophic injury or a big old diagnosis, that is the

604
00:28:46,160 --> 00:28:48,680
Speaker 1: main reason to have some type of coverage that goes

605
00:28:48,840 --> 00:28:51,240
Speaker 1: just beyond the cash that you have in savings. That's

606
00:28:51,240 --> 00:28:54,440
Speaker 1: the whole reason we use health sharing companies. Yeah. Yeah,

607
00:28:54,480 --> 00:28:57,040
Speaker 1: it acts as like this backstop in case the worst

608
00:28:57,120 --> 00:28:59,080
Speaker 1: were to happen. And it's not like with health sharing

609
00:28:59,080 --> 00:29:01,720
Speaker 1: you're getting substance discounted doctor visits like you do a

610
00:29:01,760 --> 00:29:04,760
Speaker 1: traditional insurance. There is no like super super low copay

611
00:29:05,200 --> 00:29:08,320
Speaker 1: right most of the time, So health sharing really only

612
00:29:08,360 --> 00:29:11,640
Speaker 1: makes sense I think for mostly healthy folks and families

613
00:29:11,760 --> 00:29:16,200
Speaker 1: who really are attempting to protect against worst case scenarios. Also,

614
00:29:16,240 --> 00:29:18,560
Speaker 1: I would say get familiar with the fine print about

615
00:29:18,560 --> 00:29:20,720
Speaker 1: what is and isn't covered, and this varies from different

616
00:29:20,760 --> 00:29:25,320
Speaker 1: health sharing companies to another. Preventative care, routine care, dental envision,

617
00:29:25,800 --> 00:29:30,080
Speaker 1: and more are often excluded from the share amounts, so

618
00:29:30,360 --> 00:29:32,400
Speaker 1: you're talking about having to pay for those out of

619
00:29:32,400 --> 00:29:35,960
Speaker 1: pocket before you even get to the point where you're

620
00:29:35,960 --> 00:29:39,560
Speaker 1: submitting bills for sharing. And just for people who have

621
00:29:39,600 --> 00:29:42,040
Speaker 1: a really low income, don't forget about Medicaid if your

622
00:29:42,080 --> 00:29:45,480
Speaker 1: income allows you to qualify. Yeah, yeah, you mentioned some

623
00:29:45,560 --> 00:29:46,840
Speaker 1: of the details. Keep in mind too.

624
00:29:46,920 --> 00:29:50,120
Speaker 2: So we are specifically with Meta Share, which has been great,

625
00:29:50,480 --> 00:29:55,040
Speaker 2: but there are certain requirements that they institute because it

626
00:29:55,120 --> 00:29:57,600
Speaker 2: is a faith based health sharing plan and some of

627
00:29:57,800 --> 00:30:01,840
Speaker 2: all the original healthcare plans were faith based, which is

628
00:30:01,840 --> 00:30:02,840
Speaker 2: a part of how they're able to.

629
00:30:03,080 --> 00:30:05,880
Speaker 1: Get costs so low. Though that being said, there are

630
00:30:05,920 --> 00:30:07,400
Speaker 1: also for all the folks.

631
00:30:07,200 --> 00:30:10,040
Speaker 2: Out there who aren't interested in something that's faith based,

632
00:30:10,040 --> 00:30:13,640
Speaker 2: there are a number of different secular health sharing plans

633
00:30:13,760 --> 00:30:17,280
Speaker 2: as well. Sidera is I think the first one, and

634
00:30:17,320 --> 00:30:19,440
Speaker 2: it's been around I think the longest. But there's a

635
00:30:19,440 --> 00:30:22,240
Speaker 2: new one evidently that's kicking butt too. Zion Okay, have

636
00:30:22,240 --> 00:30:24,880
Speaker 2: you heard of this now? But evidently it's pretty great

637
00:30:24,920 --> 00:30:26,720
Speaker 2: as well. So there are options out there that don't

638
00:30:26,760 --> 00:30:30,960
Speaker 2: have as restrictive as requirements as some of the more

639
00:30:31,000 --> 00:30:33,560
Speaker 2: faith based health sharing plans, and so those are options

640
00:30:33,600 --> 00:30:34,680
Speaker 2: for a lot of folks out there too.

641
00:30:34,720 --> 00:30:36,480
Speaker 1: The other thing I tell people when they ask about

642
00:30:36,480 --> 00:30:40,080
Speaker 1: health sharing from my experience, Matt, is I've barely kicked

643
00:30:40,080 --> 00:30:41,640
Speaker 1: the tires, to be honest, even though we've been on

644
00:30:41,680 --> 00:30:43,960
Speaker 1: meta share for a long time, we've not had a

645
00:30:44,000 --> 00:30:47,920
Speaker 1: major enough healthcare expense where we're running over. Essentially, are

646
00:30:48,160 --> 00:30:51,440
Speaker 1: deductible the household portion you mentioned, So like, will it

647
00:30:51,480 --> 00:30:54,520
Speaker 1: pay out in the event of an emergency? Like, from

648
00:30:54,520 --> 00:30:57,360
Speaker 1: what I've read and seen, like, I'm pretty sure they

649
00:30:57,400 --> 00:30:58,520
Speaker 1: will if we follow the rules.

650
00:30:58,600 --> 00:31:03,000
Speaker 2: Yeah, anecdotally Like that is, We've got friends who have hit,

651
00:31:03,480 --> 00:31:06,200
Speaker 2: like who approached it more as traditional health insurance and

652
00:31:06,280 --> 00:31:11,120
Speaker 2: set there it is ah HP annual household portion and

653
00:31:11,160 --> 00:31:14,160
Speaker 2: they have that set pretty low, and it's like, all right,

654
00:31:14,240 --> 00:31:16,080
Speaker 2: we got to rebuild the Achilles tendon.

655
00:31:16,240 --> 00:31:17,320
Speaker 1: That a blue ass.

656
00:31:17,520 --> 00:31:20,479
Speaker 2: The girls need to get their adenoids removed. These are

657
00:31:20,560 --> 00:31:23,680
Speaker 2: specific examples from a specific family that I'm thinking of,

658
00:31:23,800 --> 00:31:27,280
Speaker 2: and they had zero issues. So granted that's anecdotal, but

659
00:31:27,320 --> 00:31:28,000
Speaker 2: that's how it works.

660
00:31:28,080 --> 00:31:31,080
Speaker 1: Yep. We mentioned also the lack of regulation as a

661
00:31:31,160 --> 00:31:34,360
Speaker 1: downside of health sharing, but it's also that's why traditional

662
00:31:34,400 --> 00:31:38,040
Speaker 1: health insurance is superior, essentially because they're going to they're

663
00:31:38,080 --> 00:31:41,160
Speaker 1: going to pay out right, Like well, I say that

664
00:31:41,240 --> 00:31:43,280
Speaker 1: they should pay out right. It's also the reason though,

665
00:31:43,320 --> 00:31:45,120
Speaker 1: that that they can exist and the costs are so

666
00:31:45,200 --> 00:31:48,000
Speaker 1: much lower. So it's that health sharing doesn't have the

667
00:31:48,080 --> 00:31:49,880
Speaker 1: regulations placed upon it. Yes, it's the heaps.

668
00:31:49,920 --> 00:31:54,200
Speaker 2: You can't technically call it health insurance, right, there's no regulations.

669
00:31:53,600 --> 00:31:55,719
Speaker 1: But that's a part of why it's so affordable. Kind

670
00:31:55,760 --> 00:31:57,960
Speaker 1: of like a swim at your own risk zone and

671
00:31:58,080 --> 00:32:00,600
Speaker 1: no lifeguard on duty. Right, But it's the heaps of

672
00:32:00,600 --> 00:32:02,400
Speaker 1: red tape that are just a part of the reason

673
00:32:02,440 --> 00:32:04,760
Speaker 1: we're in the conundrum. So that we're in to begin with,

674
00:32:05,160 --> 00:32:07,360
Speaker 1: I remember, back in the day, Matt healthcare was essentially

675
00:32:07,400 --> 00:32:10,200
Speaker 1: regulated by the States. A lot of our younger listeners

676
00:32:10,240 --> 00:32:13,680
Speaker 1: won't remember this, right, but way back when I was yeah,

677
00:32:13,760 --> 00:32:16,240
Speaker 1: right too, it was up uphill to school. Both whites

678
00:32:16,280 --> 00:32:18,560
Speaker 1: guys too, and a lot of people really could get

679
00:32:18,560 --> 00:32:20,840
Speaker 1: a policy on the open market. I was able to

680
00:32:20,920 --> 00:32:23,680
Speaker 1: when I was young start my first job as part time,

681
00:32:23,680 --> 00:32:25,720
Speaker 1: didn't have access to health care to buy my own

682
00:32:25,760 --> 00:32:27,960
Speaker 1: policy on the market for like one hundred hundred and

683
00:32:27,960 --> 00:32:31,240
Speaker 1: ten bucks a month something like that. And while government

684
00:32:31,320 --> 00:32:34,000
Speaker 1: involvement and rules have made it easier for people, especially

685
00:32:34,000 --> 00:32:38,120
Speaker 1: with pre existing conditions, to get coverage, more rules have

686
00:32:38,280 --> 00:32:42,840
Speaker 1: created an environment of rising prices for everyone, including healthy

687
00:32:42,840 --> 00:32:45,920
Speaker 1: young people. So I guess when it comes down to it,

688
00:32:45,920 --> 00:32:47,760
Speaker 1: it's like you need the great job with the health

689
00:32:47,760 --> 00:32:52,240
Speaker 1: great healthcare benefits. We're only more tied to health coverage

690
00:32:52,400 --> 00:32:55,760
Speaker 1: from employers than ever before, which is not the best

691
00:32:55,760 --> 00:32:57,560
Speaker 1: thing for the dynamism of our country either.

692
00:32:57,640 --> 00:32:59,320
Speaker 2: That's true, and I'm going to try to stay as

693
00:32:59,400 --> 00:33:01,600
Speaker 2: a political as possible here, but I think a lot

694
00:33:01,600 --> 00:33:03,920
Speaker 2: of folks have seen the chart that shows the prices

695
00:33:03,960 --> 00:33:07,280
Speaker 2: of certain goods and services over like the past number

696
00:33:07,320 --> 00:33:07,920
Speaker 2: of decades.

697
00:33:08,720 --> 00:33:12,240
Speaker 1: And what are the services, Joel that lead the pack

698
00:33:12,440 --> 00:33:13,760
Speaker 1: that are at the top of the chart, care and

699
00:33:13,800 --> 00:33:17,360
Speaker 1: college tuition. It's healthcare. I love this because they're all

700
00:33:17,520 --> 00:33:21,160
Speaker 1: h it's healthcare, it's higher ed, and it's housing. And

701
00:33:21,200 --> 00:33:21,920
Speaker 1: what we're talking.

702
00:33:21,760 --> 00:33:24,880
Speaker 2: About here is to the extent that the government gets involved,

703
00:33:25,440 --> 00:33:29,200
Speaker 2: we see prices go up, and it's and why is

704
00:33:29,200 --> 00:33:32,960
Speaker 2: that It's almost as if there is less incentive for

705
00:33:33,080 --> 00:33:36,680
Speaker 2: these sectors to innovate or to keep prices low when

706
00:33:36,720 --> 00:33:40,520
Speaker 2: there are in some cases direct subsidies being paid, or

707
00:33:40,960 --> 00:33:43,959
Speaker 2: just the risk being offloaded these industries by the government

708
00:33:44,000 --> 00:33:47,320
Speaker 2: saying well, I got your back. I'm specifically talking about housing.

709
00:33:47,640 --> 00:33:48,400
Speaker 1: Well, same thing with.

710
00:33:50,000 --> 00:33:52,280
Speaker 2: Federal student loans as well. But what do you see

711
00:33:52,320 --> 00:33:55,560
Speaker 2: at the opposite end of that chart Electronics? You see

712
00:33:55,560 --> 00:33:59,640
Speaker 2: televisions have decreased so much in prices, like toys, electronics,

713
00:33:59,720 --> 00:34:02,800
Speaker 2: seuth phone, cel phone service. You see the sectors and

714
00:34:02,840 --> 00:34:05,280
Speaker 2: the industries that have been allowed to innovate on their

715
00:34:05,320 --> 00:34:09,240
Speaker 2: own without government involvement because they're trying to win as whenever,

716
00:34:09,280 --> 00:34:11,960
Speaker 2: as many customers as possible. And what that also means, though,

717
00:34:12,080 --> 00:34:13,879
Speaker 2: is that you've get yet products that are so much

718
00:34:13,880 --> 00:34:17,440
Speaker 2: better than they were ten twenty years ago. And I

719
00:34:17,440 --> 00:34:19,520
Speaker 2: don't think the same can be said for some of

720
00:34:19,560 --> 00:34:22,680
Speaker 2: the some of the healthcare services, higher ed housing.

721
00:34:23,040 --> 00:34:23,400
Speaker 1: I don't know.

722
00:34:23,400 --> 00:34:25,200
Speaker 2: I guess there's an argument to be made there that

723
00:34:25,400 --> 00:34:27,160
Speaker 2: the US you can certainly lead in the pack when

724
00:34:27,200 --> 00:34:29,080
Speaker 2: it comes to health innovations.

725
00:34:29,080 --> 00:34:31,399
Speaker 1: In healthcare. You could point to Lasik though as being

726
00:34:31,480 --> 00:34:35,160
Speaker 1: essentially outside of the traditional healthcare system. You've seen advances,

727
00:34:35,200 --> 00:34:37,360
Speaker 1: you've seen price decreases, you've seen a lot of competition

728
00:34:37,400 --> 00:34:39,640
Speaker 1: in that space, and we don't have much of that

729
00:34:39,719 --> 00:34:41,040
Speaker 1: in most of the healthcare system.

730
00:34:41,200 --> 00:34:43,960
Speaker 2: It's yeah, it's almost as if these industries have been

731
00:34:43,960 --> 00:34:49,120
Speaker 2: deincentivized to be competitive and to wu customers over to

732
00:34:49,360 --> 00:34:50,400
Speaker 2: what it is that they're offering.

733
00:34:50,520 --> 00:34:53,319
Speaker 1: I don't know what the overall solution is. I don't

734
00:34:53,320 --> 00:34:56,000
Speaker 1: know that there is one solution, but right now, it's

735
00:34:56,080 --> 00:34:57,960
Speaker 1: kind of as a how to money listener. It's like

736
00:34:58,280 --> 00:35:00,840
Speaker 1: doing the best you can in an environment that's like

737
00:35:00,880 --> 00:35:03,759
Speaker 1: fraught with peril. Yeah, so, Josh, I don't know. We

738
00:35:04,040 --> 00:35:06,160
Speaker 1: would say there are a lot of good reasons to

739
00:35:06,280 --> 00:35:09,719
Speaker 1: choose health sharing plans if you find yourself in a

740
00:35:09,760 --> 00:35:12,520
Speaker 1: position of mostly being healthy and having savings on hand.

741
00:35:12,560 --> 00:35:14,759
Speaker 1: It's not for everyone, though. All right, let's get to

742
00:35:14,800 --> 00:35:18,000
Speaker 1: another question, Matt. Let's talk about rental properties and how

743
00:35:18,040 --> 00:35:20,279
Speaker 1: to make sure you're not putting yourself at risk when

744
00:35:20,320 --> 00:35:20,960
Speaker 1: you own them.

745
00:35:21,320 --> 00:35:23,920
Speaker 6: Hey, Matt and Joel, this is Andy from Utah. I've

746
00:35:23,960 --> 00:35:27,480
Speaker 6: got a question about rental property liability. We have a

747
00:35:27,560 --> 00:35:30,640
Speaker 6: duplex and a single family home currently set up as

748
00:35:30,680 --> 00:35:34,800
Speaker 6: long term rentals, and another single family home under renovation

749
00:35:34,880 --> 00:35:36,440
Speaker 6: that we're hoping to have ready to go in the

750
00:35:36,480 --> 00:35:41,120
Speaker 6: next couple of months. We own these properties outright, no mortgages,

751
00:35:41,160 --> 00:35:45,160
Speaker 6: and they're fully insured. I'm wondering, with all of your properties,

752
00:35:45,360 --> 00:35:48,680
Speaker 6: do you hold each one in an individual LLC, have

753
00:35:48,800 --> 00:35:51,960
Speaker 6: a single LLC for all the properties, or just keep

754
00:35:51,960 --> 00:35:55,680
Speaker 6: them under your personal names. I've heard recommendations that you

755
00:35:55,719 --> 00:35:58,920
Speaker 6: need to hold each one in an individual LLC, but

756
00:36:00,040 --> 00:36:04,600
Speaker 6: wondering if that would actually hold any legal protections in

757
00:36:04,640 --> 00:36:08,120
Speaker 6: the event of a lawsuit. What do you think? Thank

758
00:36:08,160 --> 00:36:10,759
Speaker 6: you for being open and helpful as we all come

759
00:36:10,840 --> 00:36:13,680
Speaker 6: up with strange questions from our individual experiences.

760
00:36:14,280 --> 00:36:15,279
Speaker 1: Have a great day, Joe.

761
00:36:15,320 --> 00:36:17,480
Speaker 2: Do you think we should have gone with the Stranger

762
00:36:17,560 --> 00:36:21,880
Speaker 2: Things theme for the ask kind of money questions?

763
00:36:23,000 --> 00:36:24,800
Speaker 1: Did you watch any of the later seasons?

764
00:36:24,840 --> 00:36:24,920
Speaker 6: No?

765
00:36:25,160 --> 00:36:29,759
Speaker 1: Yeah, I just I love the first season, first and second,

766
00:36:29,800 --> 00:36:31,879
Speaker 1: and then it just got a little too little, too weird.

767
00:36:32,360 --> 00:36:34,879
Speaker 1: I'm a little sensey, Matt. Yeah, dark. Look, I forget

768
00:36:34,920 --> 00:36:38,000
Speaker 1: which season it was where it turned a bit more horror. Yeah,

769
00:36:38,080 --> 00:36:39,960
Speaker 1: well season. I did watch some of the season four,

770
00:36:39,960 --> 00:36:42,040
Speaker 1: and I was just like Yeah, it was too much.

771
00:36:42,200 --> 00:36:45,560
Speaker 1: They're getting elevated. Yeah, elevated. What do you call it?

772
00:36:45,640 --> 00:36:49,439
Speaker 1: Like levitated? Yeah, that's when it got freaky. I hate

773
00:36:49,480 --> 00:36:51,560
Speaker 1: horror stuff, man, I just can't. That's when it took

774
00:36:51,600 --> 00:36:53,759
Speaker 1: a turn towards the horror as opposed to the nostalgia

775
00:36:53,880 --> 00:36:56,560
Speaker 1: the eighties, ride your bikes around the neighborhood, mystery, the

776
00:36:56,680 --> 00:36:58,959
Speaker 1: Yeah Ham Radio. It's like, oh, I can get behind

777
00:36:59,000 --> 00:37:02,000
Speaker 1: all that. I don't want to see some people's bones

778
00:37:02,040 --> 00:37:05,479
Speaker 1: break kept on loving it, but not me. Okay, let's

779
00:37:05,480 --> 00:37:08,640
Speaker 1: get to Andy's question, and yeah, please do, by the way,

780
00:37:08,680 --> 00:37:10,799
Speaker 1: record your strange questions. Send them our way. We love

781
00:37:10,880 --> 00:37:13,200
Speaker 1: to hear money questions, and we love to hear your

782
00:37:13,200 --> 00:37:16,960
Speaker 1: weird ones if you got them. And that's just recording

783
00:37:17,000 --> 00:37:19,719
Speaker 1: that vost memo by the way, And Andy's question, Man,

784
00:37:19,760 --> 00:37:22,239
Speaker 1: this is an important question for the landlords. The more

785
00:37:22,280 --> 00:37:24,759
Speaker 1: you build wealth and the more liability you take on,

786
00:37:25,120 --> 00:37:27,759
Speaker 1: the more you want to consider how to protect that wealth.

787
00:37:27,760 --> 00:37:30,600
Speaker 1: It's kind of a success tax of sorts, but one

788
00:37:30,600 --> 00:37:33,160
Speaker 1: you're going to gladly fork over money for because it's

789
00:37:33,200 --> 00:37:39,239
Speaker 1: creating essentially a floor underneath you that you can't that's

790
00:37:39,239 --> 00:37:42,520
Speaker 1: going to protect you from syncing into the ABYSS. Ideally

791
00:37:42,560 --> 00:37:45,560
Speaker 1: we'd be funneling all our extra money into income producing assets,

792
00:37:45,880 --> 00:37:48,160
Speaker 1: but some of it is truly best spent ensuring that

793
00:37:48,200 --> 00:37:52,400
Speaker 1: we're not left destitute. This is where insurance products come in.

794
00:37:52,440 --> 00:37:55,400
Speaker 1: They make sense right where life insurance so our family

795
00:37:55,520 --> 00:37:58,560
Speaker 1: isn't left us to long term disability insurance so that

796
00:37:58,560 --> 00:37:59,920
Speaker 1: if we lose our job, which are actually going to

797
00:38:00,000 --> 00:38:02,360
Speaker 1: talk about in just a little bit, so that we're

798
00:38:02,800 --> 00:38:05,080
Speaker 1: not left without any income at all. And the same

799
00:38:05,160 --> 00:38:09,360
Speaker 1: is true for landlords as well. It's important to be

800
00:38:09,480 --> 00:38:11,440
Speaker 1: cognizant of those things. That's right. Yeah, And there are

801
00:38:11,520 --> 00:38:14,920
Speaker 1: multiple approaches though that you could take. Andy putting each

802
00:38:14,960 --> 00:38:19,120
Speaker 1: property in an individual LLC. It's seen as the most

803
00:38:19,480 --> 00:38:23,319
Speaker 1: like bulletproof, buttoned up approach, but it's also not a

804
00:38:23,320 --> 00:38:27,600
Speaker 1: sure if our way to get full protection. It references

805
00:38:27,719 --> 00:38:29,640
Speaker 1: this classic case, I think it was in New York

806
00:38:29,680 --> 00:38:33,080
Speaker 1: City where a cab owner he had multiple cars, and

807
00:38:33,120 --> 00:38:35,640
Speaker 1: so he put each cab, each car in his own

808
00:38:35,800 --> 00:38:39,120
Speaker 1: LLC as to be able to basically protect and shield

809
00:38:39,160 --> 00:38:43,080
Speaker 1: all the other cabs from any liability where one of

810
00:38:43,080 --> 00:38:45,279
Speaker 1: his drivers to hit somebody and it held up. There's

811
00:38:45,320 --> 00:38:48,960
Speaker 1: like this classic Supreme Court case where in fact, the

812
00:38:48,960 --> 00:38:51,560
Speaker 1: corporate veil it held. That's what it's called, basically, so

813
00:38:51,880 --> 00:38:54,799
Speaker 1: the corporate veil. But which is funny to think about

814
00:38:54,840 --> 00:38:58,120
Speaker 1: each car being its own little business. Yeah, I mean,

815
00:38:58,960 --> 00:39:00,480
Speaker 1: how ahead of its time was it? Is?

816
00:39:00,480 --> 00:39:04,359
Speaker 2: That not exactly how ubers function today. But by doing that,

817
00:39:04,440 --> 00:39:06,480
Speaker 2: it's going to ensure that if you are part of

818
00:39:06,520 --> 00:39:09,680
Speaker 2: a let's say, a contentious lawsuit from a tenant, that

819
00:39:09,719 --> 00:39:12,400
Speaker 2: you're not putting your not only your other properties, but

820
00:39:12,440 --> 00:39:17,839
Speaker 2: specifically your personal property at risk. But it also adds complexity.

821
00:39:18,120 --> 00:39:21,840
Speaker 2: And one argument that we've heard against putting a property

822
00:39:22,160 --> 00:39:25,279
Speaker 2: that's been in your name into an LLC is that

823
00:39:25,320 --> 00:39:29,520
Speaker 2: it can trigger the do on sale clause. It's not common,

824
00:39:29,600 --> 00:39:32,279
Speaker 2: but if you transfer legal ownership of the property, there's

825
00:39:32,320 --> 00:39:36,160
Speaker 2: a chance that your lender is going to enforce that clause.

826
00:39:36,280 --> 00:39:38,440
Speaker 2: It's not super common for that to happen, but it

827
00:39:38,480 --> 00:39:41,160
Speaker 2: is possible. It's something that it's a risk worth knowing,

828
00:39:41,320 --> 00:39:44,560
Speaker 2: and it's something that keeps folks that keeps those properties

829
00:39:44,560 --> 00:39:45,439
Speaker 2: in their name.

830
00:39:46,600 --> 00:39:49,040
Speaker 1: Yeah. I remember having, in addition to those low rates,

831
00:39:49,160 --> 00:39:51,840
Speaker 1: mortgage rates that they were able to secure as individuals.

832
00:39:51,840 --> 00:39:54,840
Speaker 1: I remember having lawyer friends frighten me into the idea

833
00:39:54,840 --> 00:39:58,920
Speaker 1: of putting my properties into individual LLCs because that was

834
00:39:59,320 --> 00:40:01,640
Speaker 1: a real possible ability looming over my head, and I

835
00:40:01,680 --> 00:40:03,440
Speaker 1: was like, yeah, not going to do that then the

836
00:40:03,480 --> 00:40:06,600
Speaker 1: way you're talking about it, But it also does appear

837
00:40:06,800 --> 00:40:10,920
Speaker 1: like that is not something that happens regularly. But I

838
00:40:10,960 --> 00:40:13,200
Speaker 1: think that's probably the reason that I haven't put any

839
00:40:13,200 --> 00:40:17,399
Speaker 1: of my properties into an individual LLC. But Andy also

840
00:40:17,400 --> 00:40:19,640
Speaker 1: said he owns his properties free and clear. You're not

841
00:40:19,719 --> 00:40:21,920
Speaker 1: dealing with a lender, so this isn't something that's over

842
00:40:22,040 --> 00:40:24,520
Speaker 1: your head. Matt. We have debt on our properties because

843
00:40:24,520 --> 00:40:26,759
Speaker 1: it's low interest rate debt. We're happy to keep it

844
00:40:26,800 --> 00:40:29,640
Speaker 1: around while putting our money in other places. But an

845
00:40:29,800 --> 00:40:32,359
Speaker 1: LLC makes a ton of sense in your case if

846
00:40:32,360 --> 00:40:35,360
Speaker 1: the cost is reasonable talk about the success tax. Depending

847
00:40:35,400 --> 00:40:37,479
Speaker 1: on where you live, you could find that the LLC

848
00:40:37,680 --> 00:40:41,000
Speaker 1: is either fairly inexpensive or incredibly costly. You won't be

849
00:40:41,040 --> 00:40:43,000
Speaker 1: surprised to hear this, but if you live in California,

850
00:40:43,239 --> 00:40:46,799
Speaker 1: you can be talking about much higher fees essentially for

851
00:40:46,920 --> 00:40:48,920
Speaker 1: having an LLC on your property. So I think it's

852
00:40:48,920 --> 00:40:51,880
Speaker 1: like eight hundred to one thousand dollars a year. That's expensive,

853
00:40:52,360 --> 00:40:55,439
Speaker 1: but it's so much less in many other states like Utah,

854
00:40:55,480 --> 00:40:57,680
Speaker 1: which where Andy lives. I think it's like fifty to

855
00:40:57,680 --> 00:41:00,520
Speaker 1: one hundred bucks a year. It's so much better, that's right.

856
00:41:00,880 --> 00:41:04,120
Speaker 1: So an LLC, especially since you own these properties outright,

857
00:41:04,160 --> 00:41:06,960
Speaker 1: could be just a brilliant move for you. Yeah, brilliant,

858
00:41:07,000 --> 00:41:09,359
Speaker 1: but also not bulletproof. I said that earlier, right about

859
00:41:09,360 --> 00:41:13,080
Speaker 1: it being bulletproof. It's not fully full proof because there

860
00:41:13,120 --> 00:41:16,440
Speaker 1: are different things that would allow the piercing of the

861
00:41:16,480 --> 00:41:19,680
Speaker 1: corporate veil. For instance, if you co mingle funds, if

862
00:41:19,719 --> 00:41:24,040
Speaker 1: it's not held entirely separate, if there's negligence, like it

863
00:41:24,040 --> 00:41:26,799
Speaker 1: doesn't matter if it's in its own LLC, they can

864
00:41:26,840 --> 00:41:30,640
Speaker 1: still come after you. And so let's talk about, Joel.

865
00:41:30,560 --> 00:41:33,600
Speaker 2: What you and I prefer what we have done, which

866
00:41:33,680 --> 00:41:37,200
Speaker 2: is an umbrella policy, and simply put, like a one

867
00:41:37,239 --> 00:41:40,000
Speaker 2: million or a two million dollar umbrella policy. It can

868
00:41:40,040 --> 00:41:42,160
Speaker 2: give you just a piece of mind, give you some

869
00:41:42,200 --> 00:41:44,919
Speaker 2: holistic coverage for a whole lot less money, a whole

870
00:41:44,960 --> 00:41:48,840
Speaker 2: lot less complexity as well, and the chances of you

871
00:41:48,880 --> 00:41:51,799
Speaker 2: being sued for a bunch more than that. Actually, I

872
00:41:51,800 --> 00:41:54,319
Speaker 2: guess you can get sued for hour much you want,

873
00:41:54,320 --> 00:41:56,560
Speaker 2: but the chances of you getting a judgment that get

874
00:41:56,600 --> 00:41:59,600
Speaker 2: placed against you is pretty small beyond that one or

875
00:41:59,600 --> 00:42:01,840
Speaker 2: two million, I think, And so I mean, it's my

876
00:42:01,920 --> 00:42:04,640
Speaker 2: belief that this is the best route for most landlords

877
00:42:04,640 --> 00:42:07,880
Speaker 2: to go. If you're smaller Mama Pop landlords like us,

878
00:42:08,320 --> 00:42:10,359
Speaker 2: it's a different story though, if you have a whole

879
00:42:10,400 --> 00:42:13,240
Speaker 2: lot more properties on hand and a lot of different

880
00:42:14,400 --> 00:42:16,560
Speaker 2: real estate professionals out there, if you head over to

881
00:42:16,560 --> 00:42:20,120
Speaker 2: bigger pockets or even our buddy Chad Carson, they talk

882
00:42:20,120 --> 00:42:22,280
Speaker 2: about this as you ramp up, as you start taking

883
00:42:22,280 --> 00:42:27,400
Speaker 2: on more bigger complexes like apartment complexes and things like that,

884
00:42:27,440 --> 00:42:30,680
Speaker 2: they encourage more clumping, right, And so it's just like, Okay,

885
00:42:30,680 --> 00:42:34,440
Speaker 2: we're gonna have all these properties in this LLC. I

886
00:42:34,440 --> 00:42:36,880
Speaker 2: guess if it's one that's really high dollar where you're

887
00:42:36,880 --> 00:42:38,520
Speaker 2: dealing with a whole lot of folks, that might be

888
00:42:38,560 --> 00:42:41,759
Speaker 2: one where you consider placing that within its own LLC.

889
00:42:41,920 --> 00:42:43,359
Speaker 2: But it's something that you can ramp up, and if

890
00:42:43,360 --> 00:42:46,160
Speaker 2: you are just a Mama Pop landlord as an individual,

891
00:42:46,560 --> 00:42:49,080
Speaker 2: I would certainly be looking more to the umbrella coverage

892
00:42:49,080 --> 00:42:51,000
Speaker 2: first before considering.

893
00:42:50,600 --> 00:42:54,400
Speaker 1: More complexity with the additional LLCs. Yeah, for sure. We

894
00:42:54,440 --> 00:42:56,960
Speaker 1: got more questions to get to, including one about what

895
00:42:57,040 --> 00:42:59,360
Speaker 1: to do if your employer drops their four OW and

896
00:42:59,440 --> 00:43:01,400
Speaker 1: K match. We'll get to that and more right after this.

897
00:43:09,040 --> 00:43:10,840
Speaker 1: All right, buddy, we are back from the break.

898
00:43:11,040 --> 00:43:13,839
Speaker 2: It is now time for the Facebook question of the week,

899
00:43:13,880 --> 00:43:17,239
Speaker 2: which is from Tyler this week, and he writes, my

900
00:43:17,360 --> 00:43:20,160
Speaker 2: previous employer gave me a one hundred percent match on

901
00:43:20,480 --> 00:43:23,400
Speaker 2: up to six percent of my four one K contribution,

902
00:43:23,640 --> 00:43:26,279
Speaker 2: and it was wonderful. I left them a few years

903
00:43:26,320 --> 00:43:28,640
Speaker 2: back for another company. By the way, I'm much happier

904
00:43:28,680 --> 00:43:32,319
Speaker 2: at my new job. However, my new employer offered four

905
00:43:32,360 --> 00:43:34,840
Speaker 2: and a half percent match, and they just announced a

906
00:43:34,920 --> 00:43:36,560
Speaker 2: drop to three and a half percent.

907
00:43:37,000 --> 00:43:40,839
Speaker 1: So first question, has anyone else seen decreases in their

908
00:43:40,840 --> 00:43:43,479
Speaker 1: four one K match for next year? It's the first

909
00:43:43,480 --> 00:43:47,760
Speaker 1: time I've taken a match decrease in my career. Second question,

910
00:43:48,000 --> 00:43:50,719
Speaker 1: with a change, where you invest your retirement dollars at all?

911
00:43:50,800 --> 00:43:53,439
Speaker 1: Given this news, I'm now getting almost half the match

912
00:43:53,480 --> 00:43:57,319
Speaker 1: I used to at my previous employer. What should think? Joel?

913
00:43:57,719 --> 00:44:01,720
Speaker 1: Always crappy to have a perk produce like that, especially

914
00:44:01,840 --> 00:44:04,120
Speaker 1: taken away. It hurts hurts more. I think it's gonna

915
00:44:04,120 --> 00:44:07,560
Speaker 1: obviously hurt even more, specifically for having money listeners who

916
00:44:07,600 --> 00:44:10,200
Speaker 1: are just like I'm gun ho about investing more, getting

917
00:44:10,200 --> 00:44:13,160
Speaker 1: the full match and growing, growing my net worth. And

918
00:44:13,239 --> 00:44:14,920
Speaker 1: to see be like, oh man, there's like, you know,

919
00:44:14,960 --> 00:44:18,440
Speaker 1: three or four percent less at my disposal from my

920
00:44:18,520 --> 00:44:22,799
Speaker 1: employer that I can take advantage of. That sucks, Like

921
00:44:22,800 --> 00:44:25,919
Speaker 1: that's hard to stomach, I think, especially for people who

922
00:44:26,080 --> 00:44:31,000
Speaker 1: think the way we do. And so I mean, I think, uh,

923
00:44:31,719 --> 00:44:33,120
Speaker 1: one of the things that Tyler mitch is that he

924
00:44:33,200 --> 00:44:35,120
Speaker 1: likes his job. I think that's great. I think enjoying

925
00:44:35,160 --> 00:44:37,600
Speaker 1: your work is better than having a killer match. Still,

926
00:44:37,640 --> 00:44:40,120
Speaker 1: it's just nice to have both. But we are seeing

927
00:44:40,200 --> 00:44:42,840
Speaker 1: more generous employers dial back a bit on four o

928
00:44:42,920 --> 00:44:45,600
Speaker 1: one K contributions. Like Tyler's not alone to this. I

929
00:44:45,640 --> 00:44:48,719
Speaker 1: do think that's important to note. Don't assume that everybody's

930
00:44:48,760 --> 00:44:51,080
Speaker 1: doing it, but also don't assume that you're the only one.

931
00:44:51,200 --> 00:44:53,799
Speaker 1: We've seen some employers. I've got a friend Matt, who

932
00:44:53,880 --> 00:44:57,160
Speaker 1: was telling me that his match was eliminated all together,

933
00:44:57,960 --> 00:45:02,480
Speaker 1: and yeah, that's even tougher to stomach. Yeah, particularly in

934
00:45:02,480 --> 00:45:04,720
Speaker 1: industries right that are having a tougher time in this economy.

935
00:45:04,760 --> 00:45:06,840
Speaker 1: I think we're seeing it more on that front, which

936
00:45:06,960 --> 00:45:11,400
Speaker 1: changes the calculation for individual investors about where and how

937
00:45:11,480 --> 00:45:14,640
Speaker 1: much they stick into that tax advantage retirement account. Yeah. Yeah,

938
00:45:14,760 --> 00:45:16,839
Speaker 1: So if you were to not get any match, well,

939
00:45:16,840 --> 00:45:19,040
Speaker 1: that makes the roth IRA a better first option in

940
00:45:19,080 --> 00:45:21,920
Speaker 1: most cases. I think getting a reduced match can mean

941
00:45:22,080 --> 00:45:24,560
Speaker 1: just dialing back a bit on those four one K

942
00:45:25,080 --> 00:45:27,640
Speaker 1: contributions so that you at least get the full match,

943
00:45:27,840 --> 00:45:31,480
Speaker 1: but then putting more of your money inside that WRATH instead,

944
00:45:31,600 --> 00:45:34,280
Speaker 1: I think is a good option if you're not maxing

945
00:45:34,320 --> 00:45:36,680
Speaker 1: out your roth IRA, I think that would be your

946
00:45:36,680 --> 00:45:39,680
Speaker 1: best reaction. And I'm assuming, like his second question was,

947
00:45:39,800 --> 00:45:41,760
Speaker 1: you know, does this change where you invest? I'm assuming

948
00:45:41,760 --> 00:45:44,000
Speaker 1: that's what he's talking about, like what I account, not

949
00:45:44,120 --> 00:45:45,160
Speaker 1: individual funds or anything.

950
00:45:45,160 --> 00:45:47,239
Speaker 2: There's a part of me that wonders, though if he

951
00:45:47,320 --> 00:45:49,040
Speaker 2: because he says where, I'm like, wait a minute, are

952
00:45:49,080 --> 00:45:50,560
Speaker 2: you talking about the fact.

953
00:45:50,640 --> 00:45:52,719
Speaker 1: I wonder And I don't think this is the case.

954
00:45:52,760 --> 00:45:55,880
Speaker 2: But if there's at all any doubt Tyler as to

955
00:45:55,920 --> 00:45:58,680
Speaker 2: the future of your company based on you shouldn't really

956
00:45:58,680 --> 00:46:01,840
Speaker 2: be investing or retirement dollars within your company's stock to

957
00:46:01,840 --> 00:46:04,920
Speaker 2: begin with, like, yes, if there's a discount, get the discount,

958
00:46:04,960 --> 00:46:05,879
Speaker 2: hang on to it as long as.

959
00:46:05,760 --> 00:46:06,800
Speaker 1: You need to ESPP.

960
00:46:07,440 --> 00:46:10,080
Speaker 2: Yeah, but then beyond that you unload those and then

961
00:46:10,200 --> 00:46:14,840
Speaker 2: move to a fully SMP of five hundred diversified index

962
00:46:14,880 --> 00:46:18,400
Speaker 2: fund or a total stock a total stock market index.

963
00:46:18,520 --> 00:46:20,239
Speaker 1: I don't think that's what he's getting at you. I

964
00:46:20,239 --> 00:46:21,759
Speaker 1: don't think so. But if it is, I wanted to

965
00:46:21,719 --> 00:46:25,239
Speaker 1: throw that out. Now definitely the time to reconsider. And

966
00:46:25,280 --> 00:46:26,759
Speaker 1: the last thing I want to mention is to not

967
00:46:26,760 --> 00:46:29,280
Speaker 1: forget about your HSA if you have access to one.

968
00:46:29,440 --> 00:46:31,680
Speaker 1: It's just the best account from a tax perspective. If

969
00:46:31,719 --> 00:46:33,920
Speaker 1: you're maxing your WROTH, if you're getting the full match,

970
00:46:34,200 --> 00:46:37,840
Speaker 1: your HSA should be the account you prioritize next before

971
00:46:37,880 --> 00:46:40,040
Speaker 1: you stick more into your four O one K above

972
00:46:40,239 --> 00:46:43,880
Speaker 1: and beyond that reduced match amount. The HSA is just

973
00:46:44,320 --> 00:46:47,279
Speaker 1: man the idea of never paying tax on the money

974
00:46:47,320 --> 00:46:48,960
Speaker 1: that goes in, never paying tax on it when it

975
00:46:49,000 --> 00:46:52,360
Speaker 1: comes out, and being able to grow it by investing

976
00:46:52,440 --> 00:46:55,120
Speaker 1: it in the meantime. It's Yeah, it's hard to beat

977
00:46:55,160 --> 00:46:57,480
Speaker 1: why it's one of our favorite retirement accounts. So Tyler,

978
00:46:57,480 --> 00:46:59,759
Speaker 1: make sure to check that one out. All right, let's

979
00:46:59,760 --> 00:47:01,920
Speaker 1: get to question from anonymous, who says I need to

980
00:47:01,960 --> 00:47:04,880
Speaker 1: purchase a long term disability policy and a life insurance policy.

981
00:47:05,000 --> 00:47:08,319
Speaker 1: Any recommendations for finding the right policy? Are brokers a

982
00:47:08,360 --> 00:47:08,840
Speaker 1: good option?

983
00:47:08,960 --> 00:47:09,160
Speaker 4: Oh?

984
00:47:09,200 --> 00:47:13,120
Speaker 2: I like brokers, But mister or miss anonymous, I'm glad

985
00:47:13,160 --> 00:47:16,239
Speaker 2: you are asking this question because the long term disability

986
00:47:16,280 --> 00:47:20,839
Speaker 2: insurance is underrated. We talk regularly about term life, rightly so,

987
00:47:21,480 --> 00:47:25,520
Speaker 2: but long term disability is a worthwhile consideration as well.

988
00:47:26,080 --> 00:47:29,359
Speaker 2: But it's not even on most folks radar. When the

989
00:47:29,400 --> 00:47:30,719
Speaker 2: stats show that.

990
00:47:30,760 --> 00:47:33,840
Speaker 1: One in four folks will be unable to work for

991
00:47:33,880 --> 00:47:37,400
Speaker 1: at least three months at some point during their working life,

992
00:47:37,600 --> 00:47:40,680
Speaker 1: So you think through how much money you could potentially

993
00:47:40,760 --> 00:47:43,879
Speaker 1: blow through, and you're taking on a pretty big risk.

994
00:47:43,960 --> 00:47:46,400
Speaker 1: And so if you are dependent on your income and

995
00:47:46,440 --> 00:47:49,360
Speaker 1: most folks are having, long term disability, is going to

996
00:47:49,400 --> 00:47:52,319
Speaker 1: provide some real financial relief if you were to be

997
00:47:52,440 --> 00:47:55,239
Speaker 1: out of work for an extended period of time. Yeah,

998
00:47:55,280 --> 00:47:57,479
Speaker 1: So yeah, this is just putting this on the radar

999
00:47:57,520 --> 00:47:59,560
Speaker 1: for more folks out there who have not ever considered

1000
00:47:59,560 --> 00:48:01,360
Speaker 1: long term Well, most people think, oh, I got a

1001
00:48:01,400 --> 00:48:04,000
Speaker 1: short term disability policy through my work, I'll be just fine,

1002
00:48:04,680 --> 00:48:06,879
Speaker 1: and that can be helpful, but it's not enough, right

1003
00:48:06,880 --> 00:48:09,200
Speaker 1: if you're out of work for an extended period of time.

1004
00:48:09,239 --> 00:48:11,560
Speaker 1: So I think, yeah, your message is, don't sleep on

1005
00:48:11,640 --> 00:48:14,440
Speaker 1: long term disability. It's worth considering, it's worth shopping around for,

1006
00:48:14,560 --> 00:48:16,600
Speaker 1: but it's also not cheap. A lot of folks are

1007
00:48:16,600 --> 00:48:19,240
Speaker 1: gonna find it, I guess. Downside, man, Yeah, like maybe

1008
00:48:19,360 --> 00:48:22,680
Speaker 1: saving up additional money in savings is better for them

1009
00:48:22,719 --> 00:48:25,359
Speaker 1: than having a long term ability policy and taking on

1010
00:48:25,840 --> 00:48:29,600
Speaker 1: kind of that risk. But yeah, because you're talking about

1011
00:48:29,600 --> 00:48:31,720
Speaker 1: forking over between one and three percent of your annual

1012
00:48:31,840 --> 00:48:34,880
Speaker 1: salary for one of these policies, start looking see if

1013
00:48:34,880 --> 00:48:37,160
Speaker 1: you're maybe your employer offers a discount of policy. The

1014
00:48:37,239 --> 00:48:40,200
Speaker 1: downside though of that is it doesn't go with you

1015
00:48:40,280 --> 00:48:42,880
Speaker 1: if you leave. Policy Genius is a great place to

1016
00:48:42,960 --> 00:48:45,560
Speaker 1: check as well. Say you mentioned giving a life insurance

1017
00:48:45,560 --> 00:48:47,759
Speaker 1: policy a term life insurance policy through a site like

1018
00:48:47,760 --> 00:48:51,400
Speaker 1: policy genius. That's a great place to look. And contact

1019
00:48:51,400 --> 00:48:54,319
Speaker 1: the local broker too, right, shop around because you're likely

1020
00:48:54,400 --> 00:48:57,560
Speaker 1: to find the prices very wildly. So yeah, check the

1021
00:48:57,560 --> 00:49:00,440
Speaker 1: big sites, check with the local broker, and see where

1022
00:49:00,440 --> 00:49:02,759
Speaker 1: you can get the best product for the best price. Yep.

1023
00:49:02,800 --> 00:49:05,160
Speaker 1: Have you ever had a long term disability Joe, I haven't. Yeah,

1024
00:49:05,600 --> 00:49:10,400
Speaker 1: I'm more a fan of self insuring. Yeah, and I

1025
00:49:10,440 --> 00:49:12,920
Speaker 1: think I'm more willing to take that risk myself. And

1026
00:49:13,120 --> 00:49:16,319
Speaker 1: the biggest hurdle is that is just the price point

1027
00:49:16,360 --> 00:49:19,200
Speaker 1: when you're socking away thousands of dollars every year, Like

1028
00:49:19,280 --> 00:49:22,480
Speaker 1: I would rather take that money, pay myself and increase

1029
00:49:22,480 --> 00:49:24,960
Speaker 1: my emergency fund. Right, So maybe you're thinking I've got

1030
00:49:25,000 --> 00:49:27,239
Speaker 1: three to six months, all right, Well maybe for you,

1031
00:49:27,360 --> 00:49:31,080
Speaker 1: if you are thinking we'll shoot, maybe long term disability

1032
00:49:31,160 --> 00:49:33,320
Speaker 1: is something I should consider. Maybe for you, that means

1033
00:49:33,440 --> 00:49:36,360
Speaker 1: your emergency fund looking more like nine to twelve months

1034
00:49:36,680 --> 00:49:40,120
Speaker 1: worth of living expenses. And that's literally what what Kate

1035
00:49:40,160 --> 00:49:42,040
Speaker 1: and I did a number of years ago. So back

1036
00:49:42,040 --> 00:49:43,160
Speaker 1: when I was a full time for I don't know

1037
00:49:43,200 --> 00:49:43,520
Speaker 1: if I've.

1038
00:49:43,400 --> 00:49:45,120
Speaker 2: Ever shared the storygel, but when I was a full

1039
00:49:45,120 --> 00:49:47,720
Speaker 2: time photographer, I had something going on with my eye,

1040
00:49:48,520 --> 00:49:51,359
Speaker 2: which is you're thinking, oh, yeah, that's probably pretty bad

1041
00:49:51,440 --> 00:49:55,520
Speaker 2: if you're a photographer, and.

1042
00:49:53,880 --> 00:49:56,560
Speaker 1: Uh, and that's what better than your pointer finger? I

1043
00:49:56,560 --> 00:50:00,320
Speaker 1: guess I don't know you can switch fingers. Yeah, you

1044
00:50:00,360 --> 00:50:02,960
Speaker 1: only have two eyes. But that's when we said, you know,

1045
00:50:03,000 --> 00:50:04,919
Speaker 1: what maybe we'll kind of ramp up how much money

1046
00:50:04,920 --> 00:50:07,080
Speaker 1: we have on hand. That was a risk that, again

1047
00:50:07,120 --> 00:50:09,400
Speaker 1: that we were willing to take. But that's one of

1048
00:50:09,440 --> 00:50:12,480
Speaker 1: the first times I got me thinking about maybe things

1049
00:50:12,480 --> 00:50:14,920
Speaker 1: go south here. We certainly want to make sure that

1050
00:50:14,960 --> 00:50:17,680
Speaker 1: we're prepared. But your family situation also has something to

1051
00:50:17,719 --> 00:50:19,200
Speaker 1: do with it, because in my case, I had a

1052
00:50:19,200 --> 00:50:23,200
Speaker 1: wife a partner who would very gladly work if I

1053
00:50:23,280 --> 00:50:25,400
Speaker 1: was not able to. I don't know about gladly, but

1054
00:50:25,440 --> 00:50:28,520
Speaker 1: she will. She'd be willing to to step up, and

1055
00:50:28,920 --> 00:50:31,080
Speaker 1: you sat there and watch sports with Yeah, work, work,

1056
00:50:32,719 --> 00:50:35,279
Speaker 1: works some extra hours if if she needed to. But

1057
00:50:35,400 --> 00:50:38,080
Speaker 1: if you're flying solo and it just comes down to

1058
00:50:38,160 --> 00:50:40,719
Speaker 1: you and your income, yeah, that's another consideration as well.

1059
00:50:40,760 --> 00:50:43,480
Speaker 1: There's just a number of different factors here that go

1060
00:50:43,640 --> 00:50:45,719
Speaker 1: into whether or not this is a risk that you

1061
00:50:45,760 --> 00:50:47,640
Speaker 1: can take. When if you start shopping for a policy,

1062
00:50:47,680 --> 00:50:50,600
Speaker 1: it's also really really important to look at the fine print,

1063
00:50:50,719 --> 00:50:54,000
Speaker 1: like does your policy adjust for inflation? Does the policy

1064
00:50:54,080 --> 00:50:57,040
Speaker 1: kick in if you can't do your own specific job,

1065
00:50:57,120 --> 00:50:59,520
Speaker 1: or if you can't do any job, what percentage of

1066
00:50:59,520 --> 00:51:02,280
Speaker 1: your pay it covers, like fifty percent pay seventy percent,

1067
00:51:02,719 --> 00:51:05,880
Speaker 1: how long would the payout last? Right if you became disabled?

1068
00:51:05,960 --> 00:51:08,680
Speaker 1: Is this a cap after five years or something like that?

1069
00:51:08,880 --> 00:51:10,040
Speaker 1: Can the premiums increase?

1070
00:51:10,080 --> 00:51:10,120
Speaker 3: Like?

1071
00:51:10,160 --> 00:51:12,160
Speaker 1: These are all the sorts of questions you want to

1072
00:51:12,200 --> 00:51:15,799
Speaker 1: be asking and comparing policies against each other if you're

1073
00:51:15,840 --> 00:51:18,160
Speaker 1: looking to get one. It's not just all about getting

1074
00:51:18,160 --> 00:51:22,040
Speaker 1: the lowest possible premium price, right, because if the coverage

1075
00:51:22,160 --> 00:51:24,000
Speaker 1: is too flimsy and it's not doing what you needed

1076
00:51:24,040 --> 00:51:26,920
Speaker 1: to do, then it's not worth the price, even if

1077
00:51:26,960 --> 00:51:30,400
Speaker 1: it's a cheaper price, that's right. So we hope that helps, Joel.

1078
00:51:30,480 --> 00:51:32,440
Speaker 1: Let's get back to the beer that you and I

1079
00:51:32,600 --> 00:51:36,120
Speaker 1: enjoyed during this episode, which was an experimental shift. This

1080
00:51:36,200 --> 00:51:40,960
Speaker 1: is a New England IPA, a beer by Incendiary Brewing,

1081
00:51:41,719 --> 00:51:44,680
Speaker 1: donated to the show by a headmaster brewer. Actually I

1082
00:51:44,680 --> 00:51:46,400
Speaker 1: don't know if he's the head master, but he's the

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00:51:46,440 --> 00:51:48,640
Speaker 1: owner or he started the brusk. He's the head of

1084
00:51:48,640 --> 00:51:52,080
Speaker 1: a school too, head of a school, head master, that's right.

1085
00:51:52,120 --> 00:51:54,040
Speaker 1: Wait what I say, I say head master or hebrewer

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00:51:54,120 --> 00:51:57,560
Speaker 1: head master? Oh well, he's a head brewer and the

1087
00:51:57,560 --> 00:51:59,680
Speaker 1: master of his own domain. I'm thinking about Hogwarts or

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00:52:00,160 --> 00:52:00,600
Speaker 1: over here.

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00:52:01,120 --> 00:52:04,720
Speaker 2: Uh this so he explained that every month with this beer,

1090
00:52:04,960 --> 00:52:07,239
Speaker 2: they rotate the hops and they do something different, and

1091
00:52:07,280 --> 00:52:10,600
Speaker 2: so that's why this is an experimental IPA well.

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00:52:10,480 --> 00:52:11,919
Speaker 1: Makes me want to try more of them. Yeah, because

1093
00:52:11,920 --> 00:52:13,520
Speaker 1: I'll be honest, what you think this is great? Like

1094
00:52:14,080 --> 00:52:16,640
Speaker 1: I think I like whatever experimental hops. At least we're

1095
00:52:16,640 --> 00:52:19,640
Speaker 1: in this one. It has some tropical notes, but in

1096
00:52:19,680 --> 00:52:23,680
Speaker 1: the right way, not these like overly like fake juicy tones.

1097
00:52:23,719 --> 00:52:27,000
Speaker 1: It just tasted like the hops whatever hops are you

1098
00:52:27,080 --> 00:52:29,919
Speaker 1: being used in the making of this beer shone through

1099
00:52:30,200 --> 00:52:34,160
Speaker 1: incredibly well. It was not overly sweet or fruity, so

1100
00:52:34,320 --> 00:52:37,280
Speaker 1: to me, the fact that like hoppy in the best way,

1101
00:52:37,680 --> 00:52:42,600
Speaker 1: not obliteratingly bitter, not overly sweet, balancing, well balanced. Loved

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00:52:42,640 --> 00:52:42,880
Speaker 1: this one.

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00:52:42,960 --> 00:52:45,359
Speaker 2: Yeah you said fruitiness. I almost picked up like a muscadine,

1104
00:52:45,560 --> 00:52:48,360
Speaker 2: like hoppy happiness to it, like along with like the

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00:52:48,480 --> 00:52:49,840
Speaker 2: vegetable vegetable notes.

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00:52:50,000 --> 00:52:52,680
Speaker 1: But yeah, I don't know. I kept coming back to muscadine.

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00:52:52,840 --> 00:52:54,840
Speaker 2: But you can tell this was a bigger, a bigger

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00:52:54,880 --> 00:52:57,400
Speaker 2: I pa, It's a bit boozy, had a lot of

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00:52:57,400 --> 00:53:00,239
Speaker 2: flavor packed in it, but really good And I'm add

1110
00:53:00,280 --> 00:53:02,640
Speaker 2: that you and I got to share one today. My

1111
00:53:02,760 --> 00:53:05,320
Speaker 2: friends came here, pal, all right, let's wrap it. You

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00:53:05,320 --> 00:53:06,960
Speaker 2: can find our show notes up on the website at

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00:53:06,960 --> 00:53:10,480
Speaker 2: howtomoney dot com. That's going to be it for this episode,

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00:53:10,560 --> 00:53:13,640
Speaker 2: So until next time, best Friends Out, Best Friends Out,