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

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

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Speaker 2: That's right, buddy, Happy Monday to everyone. We're excited to

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Speaker 2: get to some listener questions today, including a listener who's

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Speaker 2: trying to figure out whether he should be going with

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Speaker 2: a cash back credit card as opposed to a credit

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Speaker 2: card that offers points. He's going to figure out what's

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Speaker 2: best for him. Another listener is asking what they should

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Speaker 2: be doing about a brokerage account. Turns out it might

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Speaker 2: be sticking around for a little bit longer than they

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Speaker 2: were expecting. And we're going to discuss the best way

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Speaker 2: to buy your first piece of real estate, your first home.

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Speaker 2: Turns out there's a good way of doing it, Joel,

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Speaker 2: but there's also a better way of doing it that

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Speaker 2: we're going to get see. You know, you're going to

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Speaker 2: suggest my real estate in the metaverse right, just to

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Speaker 2: buy a portion of the moon? Which do they still

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Speaker 2: sell different stars? And I think there's some sort of

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Speaker 2: register out there that where you can literally lay claim

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Speaker 2: to stars that might be true portions of the moon. Yeah,

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Speaker 2: I would not recommend that. It's interesting.

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Speaker 1: I haven't heard like anything about the metaverse recently, or

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Speaker 1: people want to spend time there or snatch up real estate.

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Speaker 1: I'm wondering if the people who.

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Speaker 2: Are so hot in twenty twenty one, yeah, Facebook changed. Yeah,

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Speaker 2: they're named a meta.

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Speaker 1: Because which Facebook has done. They're all in quite nice.

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Speaker 1: I mean, but I don't know that the metaverse is

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Speaker 1: pan out like they hoped. And I wonder if the

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Speaker 1: early adopters buying real estate and the metaverse have you know,

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Speaker 1: lost their shirt, the roverbial shirt.

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Speaker 2: I how did that ever sound like a good idea?

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Speaker 2: I'm not totally sure. Like looking back now, it seems

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Speaker 2: like it's like, would you like to buy this virtual

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Speaker 2: piece of property in the game called Sims? It just

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Speaker 2: seems like such a fake, made up pipe dream.

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Speaker 1: Kind of like video games were trying to be in

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Speaker 1: real life and the mixture just didn't quite so weird.

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Speaker 1: Maybe it well someday. I don't know, Matt real quick,

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Speaker 1: before we get to listener questions. My buddy Scott I

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Speaker 1: ranted him the other day on a walk around the

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Speaker 1: neighborhood and he was like, oh man, I listened to

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Speaker 1: your interview with the guys from car Edge Ray and

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Speaker 1: Zach Father son duo talking about how to buy a

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Speaker 1: car effectively. And one of the pieces of advice that

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Speaker 1: those two awesome dudes gave was to fly elsewhere around

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Speaker 1: the country, to scour online to see if you can

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Speaker 1: find a better price than which you have available locally.

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Speaker 1: And I think most people, when they're buying a car,

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Speaker 1: myself included, for so many years, you just kind of,

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Speaker 1: I don't know, look on auto Trader, look on Craigslist, Facebook,

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Speaker 1: those kinds of places to say, well, what is being

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Speaker 1: sold nearby where I live that I could that I

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Speaker 1: could grab, that makes sense for my family and my budget. Well,

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Speaker 1: the truth is there's a much bigger marketplace than the

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Speaker 1: one within thirty mile radius of where you live. Yeah,

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Speaker 1: And so my buddy Scott heard that and he was like,

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Speaker 1: you know what, I'm gonna take that, and I'm actually.

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Speaker 2: Gonna do it. Did he really? And he did. So

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Speaker 2: he flew I want to say he flew down to Houston.

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Speaker 1: I don't remember exactly where he went, but halfway across

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Speaker 1: the kind of far maybe it was a I forget

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Speaker 1: how far the drive. Maybe it was like a twelve

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Speaker 1: fifteen hour drive back to his house from there.

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Speaker 2: But he saved. I want to say he saved like

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Speaker 2: three or four grand.

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Speaker 1: Buying this car. Elsewhere, he dropped a couple hundred bucks

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Speaker 1: on a plane ticket. He said it was definitely worth

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Speaker 1: U time.

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Speaker 2: Oh yeah, Okay, So that's the question I guess is

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Speaker 2: you got to kind of weigh the pros and the

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Speaker 2: cons because I'm a lot of money though it is

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Speaker 2: a lot of money, and it depends on whether or

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Speaker 2: not you're in like the stage of life where you've

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Speaker 2: got more cash on hand or do you have more

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Speaker 2: time on hand? And yeah, there might be a ton

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Speaker 2: of folks who are like, oh, well, I'm the kind

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Speaker 2: of guy that drives across town to get gas that's

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Speaker 2: three cents less per gallon, So I'm definitely gonna buy

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Speaker 2: a vehicle that costs three thousand dollars less. But did

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Speaker 2: he get it inspected while he was over there? Because

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Speaker 2: one of the things we always talk about is when

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Speaker 2: you buy a used car you have in whether or

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Speaker 2: not we're talking local or abroad in other states, but

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Speaker 2: make sure that you get that thing looked at right sure,

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Speaker 2: because and that's one of the difficulties that I would

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Speaker 2: foresee is saying, hey, I've got a mechanic here in

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Speaker 2: town that I trust that I go to all the time.

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Speaker 2: But the ability to find a mechanic who is going

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Speaker 2: to give you the time of day to be able

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Speaker 2: to say, yeah, I can fit that in in this

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Speaker 2: sort of narrow window of time. Otherwise, with you like

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Speaker 2: timing belt, or like some other really expensive thing or

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Speaker 2: system that needs to be addressed, it could really eat

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Speaker 2: into any of the savings that you have. Good points.

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Speaker 2: That's a good point, because you do.

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Speaker 1: We want people when they're buying a used car to

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Speaker 1: get an inspected so they know what they're buying.

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Speaker 2: A home inspection. Yeah, Like I mean literally, I would,

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Speaker 2: even especially if you're looking at a different city, expect

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Speaker 2: to pay somebody, not just because if it's your local

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Speaker 2: mechanic maybe they would look it over because you've got

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Speaker 2: a not a reputation a relationship with them. But if

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Speaker 2: you're somewhere else, man, I think you could definitely expect

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Speaker 2: to pay some money to make sure that that you're

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Speaker 2: not getting something that's going to end up costing you

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Speaker 2: more down the road. Yeah, you don't want to save

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Speaker 2: three grand and then get a lemon and pay that

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Speaker 2: out and repair bills over the next thing, and then

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Speaker 2: I had to drave across the southeast, so boring. Yeah,

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Speaker 2: but I think for some people, I love the idea

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Speaker 2: that excuse for a road trip, especially if it's not

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Speaker 2: too too far away. I had another friend who did

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Speaker 2: that maybe a few years back before that was before

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Speaker 2: this episode came about. So she was just even smarter.

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Speaker 2: But she flew down to Florida to buy a minivan.

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Speaker 2: And yeah, so just a word of the wise reminder

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Speaker 2: of people, Rachel, Yeah, yeah, yeah, and so it ended

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Speaker 2: up working out great for her. It worked out great. Yeah.

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Speaker 1: So, and the amount of money you can save if

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Speaker 1: you're willing to jump through a couple hoops and maybe

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Speaker 1: cast your net a little bit wider totally.

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Speaker 2: Can be significant. Totally. It's it's definitely worth considering because

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Speaker 2: I think for a lot of folks, buying a car

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Speaker 2: it's not something that you do often, right, It's a

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Speaker 2: rare event, and so because of that, you're not as

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Speaker 2: familiar with the process, and it's even rare, or it's

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Speaker 2: even weirder to say, oh, I want to fly somewhere

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Speaker 2: to then do this thing that I also never do.

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Speaker 2: And so I guess I'm pointing out the fact that

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Speaker 2: there's this mental roadblock, this mental hurdle to get past.

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Speaker 2: But once you get past that, and if you can

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Speaker 2: saw some of the small, well not small, but I

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Speaker 2: guess very solvable problems, then yeah, like you said, it

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Speaker 2: could be a great way to say for sure, I

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Speaker 2: like it.

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

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Speaker 1: This is which I also like, is a big foot

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Speaker 1: to barley wine style.

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Speaker 2: Ale. It's not a barley wine. They say barley wine style,

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Speaker 2: barley white ish. Yeah.

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Speaker 1: So this is by Sierra Nevada, one of the og

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Speaker 1: craft breweries in the US. We'll give our thoughts on

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

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Speaker 2: But if they're like, hmm, this didn't quite turn out

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Speaker 2: like we thought it would. This sort of tastes like

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Speaker 2: a barleywine though barley white ish. Yeslywhitne style. Completely accidental,

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Speaker 2: but it's been one of their best sellers for like

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Speaker 2: three decades and now was just keep it keep it going, man,

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Speaker 2: all right, Let's and Matt. If for folks out there

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Speaker 2: who are listening and they're like, I've got a question

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Speaker 2: for Matt and Joel, we'd love to hear from you.

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Speaker 2: Just got a how to money dot com slash ask

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Speaker 2: for the simple directions on how to record a voice

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Speaker 2: memo and send it over to us. But it's pretty

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Speaker 2: simple basically, I just outline what you do, record a

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Speaker 2: voice memo, send it.

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Speaker 1: Over to last and on over yeap. Hopefully we'll take

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Speaker 1: it next week on the show, Matt. Let's take a

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Speaker 1: question now about credit cards and how to know which

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Speaker 1: one might be most appropriate for you.

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Speaker 3: Hey guys, it's awestin from Alabama. I have a question

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Speaker 3: that I've been trying to figure out on my own,

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Speaker 3: but I've been unable to come to a clearance to

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Speaker 3: stick answer on. I have a two percent cash back

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Speaker 3: credit card with no annual fee. We use it and

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Speaker 3: like it with no problems. Many travel cards offer two

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Speaker 3: x miles for every dollar spent. What is the difference

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Speaker 3: between these two kinds of rewards the two percent cash

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Speaker 3: back and two x miles or is there one? I

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Speaker 3: know some of the travel cards with more rewards like

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Speaker 3: airport lounge access and free check bags will come with

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Speaker 3: an annual fee. My family doesn't travel a ton, which

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Speaker 3: is why I haven't pursued a travel card up to

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Speaker 3: this point. But if we were to travel more as

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Speaker 3: our kids get older, I may want to venture pun

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Speaker 3: intended into travel cards. I should add that we pay

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Speaker 3: our balances off in full and on time every month

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Speaker 3: and have never carried a balance on credit cards.

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Speaker 1: Thanks, well, now we got a venture pun thrown in there.

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Speaker 1: Nicely done, Austin, great dad, jobs of the ILK that

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Speaker 1: I would tell.

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Speaker 2: So I want to address something that Austin mentioned, the

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Speaker 2: two percent cash back cards. I think everyone should basically

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Speaker 2: have one of those in their wallet, in their credit

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Speaker 2: card arsenal. Even if you implement a travel credit card

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Speaker 2: as well, there are times when you're just not going

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Speaker 2: to get as much of return using the cards, just

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Speaker 2: in your day to day spending where by default you

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Speaker 2: should always be getting two percent, like one percent No, no, no,

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Speaker 2: that was so nineteen ninety eight. Or I think of

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Speaker 2: as like the floor, it's the basement. Yeah, it's the minimum.

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Speaker 1: Don't never get less than that on rewards for when

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Speaker 1: when you buy stuff with a credit card.

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Speaker 2: Yeah, there's no need to. And if you are getting

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Speaker 2: into travel, absolutely consider some of these travel cards that

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Speaker 2: like we're going to get into but at a minimum,

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Speaker 2: by default have a two percent card and specifically the

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Speaker 2: So I've never actually had this card, but don't you

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Speaker 2: have the Fidelity I have the Fidelity two percent card

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Speaker 2: and it deposited, deposits it into your Fidelity account. That's right.

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Speaker 1: I've had that account that credit card for that's that's

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Speaker 1: I think that's the first credit card ever got, So

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Speaker 1: I've had that card for a long time.

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Speaker 2: We look at you. Yeah, very loyalty. That seems like

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Speaker 2: a very goody two shoes sort of answered. It's like,

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Speaker 2: my first credit card was the Fidelity Investment, but then

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Speaker 2: the other one is the City double Cash where you

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Speaker 2: earn two percent no matter what. Right. Solid. And I

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Speaker 2: think it's also.

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Speaker 1: Important to mention here Mathot that not everyone or listeners

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Speaker 1: don't need to have dozens of cards, right. They don't

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Speaker 1: need just a slew of credit cards in their arsenal,

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Speaker 1: especially if they're not into optimizing their credit card game

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Speaker 1: all the way, which a lot of people aren't. Some

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Speaker 1: people don't want to play the game to that degree.

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Speaker 1: They're not like our buddy Chris Hutchins, who goes so

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Speaker 1: hard with credit cards, and I think it's awesome and

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Speaker 1: I love hearing how he does it, and I love

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Speaker 1: kind of divulging that information to our listeners who are

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Speaker 1: interested in going crazy with credit cards, because it's amazing

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Speaker 1: how much you can accomplish. I was literally texting with

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Speaker 1: him the other day, and we should talk about this

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Speaker 1: on the show at some point. But he bought tons

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Speaker 1: of gift cards at a discount to resell, and the

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Speaker 1: whole goal for him was to do just a mass

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Speaker 1: ridiculous amounts of points. So he's playing the game, and

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Speaker 1: he's playing harder than almost anybody I know, frugal.

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Speaker 2: Or cheap joal to go to those links. It depends

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Speaker 2: what you're into, man, But like especially when if you

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Speaker 2: love it, if you find satisfaction and life fulfillment, I

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Speaker 2: guess from doing that, then more power to use.

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Speaker 1: For him, it's going to mean a lot of free travel,

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Speaker 1: but it's also going to mean content for his podcast,

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Speaker 1: so maybe he's doing it for the pod.

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Speaker 2: That's right, that's right.

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Speaker 1: So how valuable are travel rewards. Let's get to the

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Speaker 1: heart of Austin's question and does two X points Let's say,

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Speaker 1: which you're going to hear on the commercials some of

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Speaker 1: those travel cards, does that equal two percent cash back?

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Speaker 1: It's kind of a scorely thing. But the quick answer

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Speaker 1: is not necessarily, points are typically worth one cent, so

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Speaker 1: two X points and two percent cash back are roughly

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Speaker 1: equivalent in value. But how much more or less valuable

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Speaker 1: those travel miles are than the cash back rewards that

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Speaker 1: you're going to get revolves around how well you know

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Speaker 1: and play the system. For instance, accumulating points with a

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Speaker 1: two X travel card and then transferring them to a

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Speaker 1: hotel partner so you can pay less for your stay.

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Speaker 1: That increases the value of those points, and it could

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Speaker 1: allow those points to be worth far more than a

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Speaker 1: two percent cash back card can get you essentially more

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Speaker 1: than two cents on the dollar. But if you use

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Speaker 1: those points unwisely or you attempt to turn those travel

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Speaker 1: points into cash, you're losing out and you would have

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Speaker 1: been better off using a two percent card. So part

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Speaker 1: of it is just kind of knowing the system and

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Speaker 1: using it in the way to its fullest extent.

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Speaker 2: Totally. Yeah, miles can be more rewarding, especially for folks

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Speaker 2: who like to travel, who have the ability to be

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Speaker 2: super flexible as well in how it is that they

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Speaker 2: travel when they book, and the signup bonuses because of that,

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Speaker 2: I guess, because like the credit card companies are offering

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Speaker 2: they're dangling like a fat or juicier carrot, but it's

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Speaker 2: harder to catch, right, But if you do catch it,

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Speaker 2: the uh in particular, the signum bonuses for this travel

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Speaker 2: cards are vastly superior.

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Speaker 1: Yeah, the cash back cards, the sign up bonus typically

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Speaker 1: non existent. They're pretty meager or paltry, right, yeah, yeah,

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Speaker 1: And so they.

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Speaker 2: Offer an outsized advantage for folks out there who are optimizing.

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Speaker 2: By the way, Chris Hussion's episode we talked to episode

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Speaker 2: eight ninety nine where we actually dove into some of

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Speaker 2: that you got to know yourself, But some of the

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Speaker 2: best cash back cars out there come with bigger perks

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Speaker 2: in certain spending categories, and that actually it tends to

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Speaker 2: be a little bit easier to optimize. So, for instance,

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Speaker 2: you can get five percent cash back eating out if

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Speaker 2: you use the Chase Custom cash card like I do.

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Speaker 2: So it's literally a credit card I keep on my

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Speaker 2: person and often in which a lot of times, a

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Speaker 2: lot of cards I don't keep on my person. But

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Speaker 2: that's one card because and I go out for date nights,

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Speaker 2: they bring you the check, they take it off. You know,

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Speaker 2: it's not like I'm standing there at the register like

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Speaker 2: you not Europe, Matt, Yeah, exactly. They don't bring you

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Speaker 2: the terminal to the whatever to the table. Why don't

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Speaker 2: we do that? But that's a car to keep it

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Speaker 2: on my person because when it comes to paying for

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Speaker 2: our date nights, I use that card one hundred percent

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Speaker 2: of the time. Five percent cash back or even like

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Speaker 2: a six percent cash back at grocery stores with the

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Speaker 2: AMEX Blue Cash Preferred card. That's another one that I

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Speaker 2: love and we take full advantage of. Uh, you know

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Speaker 2: that's one that you you downgrade you a little bit. Yeah,

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Speaker 2: he just shopped at Costco too. You don't like that

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Speaker 2: that annual fee. Well, speaking of Costco, what is it?

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Speaker 2: Five percent cash back on gas at Costco and then

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Speaker 2: four percent at other gas stations. And so I mentioned

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Speaker 2: this because there are ways to get a higher percentage

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Speaker 2: of cash back. And you're thinking, whoa, that's like, that's

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Speaker 2: got to be at least four x five x six

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Speaker 2: x miles. Well, yeah, but there are caps, there are limits,

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Speaker 2: and it's only within you know, narrow spending windows.

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Speaker 1: So and the thing is too, there's typically no annual

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Speaker 1: fees except for on that MX Blue Cash Preferred. No

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Speaker 1: hoops to jump through premium six percent, Yeah, pay a

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Speaker 1: little bit. I think you just there's less due diligence required, right,

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Speaker 1: So you could cash back to optimize just a few categories,

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Speaker 1: used to two percent card for everything else, and you

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Speaker 1: do quite well for yourself. It's it's sort of.

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Speaker 2: Like a set and forget it sort of mentality. And

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Speaker 2: if that's what you're looking for, Austin, if you're looking

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Speaker 2: to kind of figure out the system and then always

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Speaker 2: know that, okay for going out to eat, I use

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Speaker 2: this card. For groceries, I use this card, and then

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Speaker 2: to the ability to never have to think about it again.

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Speaker 2: That's what's so great about these cash back cards as

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Speaker 2: opposed to the points game. If it's like having to

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Speaker 2: keep up with the news, it's always ever evolving and changing.

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Speaker 2: Hopefully not as quickly as the news has been in

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Speaker 2: recent cycles, but it is something that you have to

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Speaker 2: keep up with a little bit more because of the

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Speaker 2: fact that the credit card companies are looking to keep

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Speaker 2: you on your toes and they're trying to like out

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Speaker 2: maneuver you, essentially because if they're changing the rules a

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Speaker 2: little bit, it's tougher to know what it is that

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Speaker 2: you should be doing with us.

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Speaker 1: Yeah, I think that's one of the pros of cash back, right.

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Speaker 1: It's easy to redeem travel awards less so right, so

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Speaker 1: you might have to go through the credit card company's

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Speaker 1: booking portal, or if you want the best deal, you

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Speaker 1: might have to transfer them to one of the partners.

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Speaker 1: And it can obviously be done, but there are just

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Speaker 1: steps involved, and some people just don't want to figure

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Speaker 1: out the proprietary system of Chase or Capital One or

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Speaker 1: something like that, right, And the other potential problem with

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Speaker 1: travel rewards is that they can diminish in value over

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Speaker 1: time if you don't use them. This is inflation, particularly,

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Speaker 1: it's points flation, and so, hey, you get these points

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Speaker 1: and you're like, all right, eighty thousand points. Well, if

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Speaker 1: you don't use them for a year or two, those

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Speaker 1: eighty thousand points instead of buying you like two plane tickets,

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Speaker 1: might get you a plane ticket and a half or

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Speaker 1: something like that, And so you just have to be

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Speaker 1: wary of that as well. On the cash back front,

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Speaker 1: you can typically sign into the back end of your

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Speaker 1: account and choose automatic redemptions, right, so that you're quickly

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Speaker 1: getting the benefit you signed up for. That money isn't

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Speaker 1: necessarily sitting there for a long period of time, getting

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Speaker 1: eaten away by inflation, and so I don't know. I

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Speaker 1: think there are a lot of folks, Matt, who let

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Speaker 1: their eyes get as big as saucers whin accruing rewards,

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Speaker 1: but they fail to use them in a timely manner,

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Speaker 1: and then when they do use them, they're not great

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Speaker 1: at optimizing that that spend of points, and it just

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Speaker 1: devalues your purchase. And so maybe for a lot of people,

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Speaker 1: not for everyone, that's for sure. Some people optimize this

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Speaker 1: quite well, but for a lot of people who go

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Speaker 1: into the travel points game, I think maybe they're not

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Speaker 1: doing it as well as they thought they were going to,

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Speaker 1: and so they're not quite getting the benefit that they.

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Speaker 2: Thought they were exactly. They thought they had that big

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Speaker 2: juicy carrot within their grass, but then it gets yanked up.

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Speaker 2: And I also like the sort of picture that you

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Speaker 2: painted about the points getting devalued and how the flights

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Speaker 2: don't get you quite as far, and I like the

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Speaker 2: audition that carry it out further. Yeah, I like the

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Speaker 2: idea of a narroline saying or I kind of don't

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Speaker 2: like it, obviously, but it's kind of funny to think Hey,

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Speaker 2: you're wanting to go to California. Sorry, your points didn't

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Speaker 2: quite get you there. Looks like you're in South Dakota.

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Speaker 2: You got to get out in Nevada. No, no shade

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Speaker 2: thrown at Novada or anything like that. But Austin also

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Speaker 2: mentioned some of the secondary benefits of travel cards, which

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Speaker 2: is pretty cool because if you are king to travel more,

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Speaker 2: you know, there's a nice sign up bonus, and you're

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Speaker 2: also interested in deal hunting to use those points, then

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Speaker 2: those secondary benefits it really might push you over the

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Speaker 2: edge to get and to start regularly using a travel

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Speaker 2: card like Capital Ones Venture Card, which is a great one.

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Speaker 2: The Chase Sapphire Preferred Card is also a great travel card,

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Speaker 2: and both do both of those have primary and the

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Speaker 2: primary I.

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Speaker 1: Think so yeah, which is one of the biggest perks

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Speaker 1: for that. My Fidel Whinit card actually comes with that too.

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Speaker 1: Oh yeah, little throwback to the old two percenter.

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Speaker 2: If you do offer a travel card, though Austin, the

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Speaker 2: best ones, in our opinion, are typically not brand specific.

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Speaker 2: You know, it's not like airline and Airlines or a

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Speaker 2: Delta cart specifically except for Southwest, because with Southwest you

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Speaker 2: get that companion pass and you get those unlimited flights

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Speaker 2: within that the rest of that year and then the

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Speaker 2: entire following year as well.

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Speaker 1: Is hard to beat that we had a listener email

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Speaker 1: us at the end of last year.

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Speaker 2: I want to say, Matt, oh, how many flights did

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Speaker 2: he take? Something like twenty two flights? How many? And

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Speaker 2: then they flew to Hawaii like two three times? Yeah,

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Speaker 2: multiple times working the system. I don't think that Austin

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Speaker 2: is in that situation because it sounds like he's got

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Speaker 2: young kids, but he's looking ahead. And it comes down

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Speaker 2: I think to what you said this earlier. What game

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Speaker 2: you're willing to pay? Because it is a game, even

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Speaker 2: the credit card cash back system, like that's still a game.

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Speaker 2: But are you willing to take it to the next

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Speaker 2: level and play the points game, the travel rewards game.

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Speaker 2: That's a whole another game that's a more complicated game.

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Speaker 2: It makes me think about like back in the day

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Speaker 2: when we had more bandwidth and more time, Joel, when

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Speaker 2: we sat down to play a game, what would we play.

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Speaker 2: We'd played like Settlers of Catan, Puerto Rico, Wingspan, like

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Speaker 2: these games that have it takes like ten minutes to

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Speaker 2: set these games up. Now it's like King Nomino because

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Speaker 2: it takes like fift what do we do. It's like, hey,

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Speaker 2: adult swim time for Mario Kart. Why get out of here, kids,

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Speaker 2: and we'll you know, we'll play like one Grand Prix

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Speaker 2: just to show the kids who's boss. But like, that's

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Speaker 2: all we have capacity for. And so that's where we

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Speaker 2: are these days when it comes to gaming, and in

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Speaker 2: a similar way with credit cards, you have to recognize

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Speaker 2: what you have capacity for when it comes to the

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Speaker 2: how you're going to optimize your credit.

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Speaker 1: I think that's a really good point, the agent stage

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Speaker 1: where you're at in life, because at least for you

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Speaker 1: and I right now with a bunch of young kids,

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Speaker 1: we're not traveling quite as much, although that's starting to change,

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Speaker 1: so maybe we're going to start getting back into the

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Speaker 1: the travel points game with a little more fervor as

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Speaker 1: we kind of start to expand our travel horizons. But

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Speaker 1: for a bunch of years there, it was like, no way,

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Speaker 1: we're gonna take the show on the road.

433
00:18:47,640 --> 00:18:49,879
Speaker 2: I literally did not have these single travel card because

434
00:18:49,880 --> 00:18:51,399
Speaker 2: we weren't. I didn't go out, I didn't leave the

435
00:18:51,400 --> 00:18:53,320
Speaker 2: country for over a decade. Yeah, man, Like when we

436
00:18:54,000 --> 00:18:56,080
Speaker 2: because we're having kids, and I'm just like, all right,

437
00:18:56,119 --> 00:18:57,920
Speaker 2: I'm just gonna kind of resign myself to the fact

438
00:18:57,920 --> 00:18:58,760
Speaker 2: that I don't travel an I.

439
00:18:58,760 --> 00:19:02,919
Speaker 1: Think there's a certain amount of yourself. My dink little sister.

440
00:19:03,359 --> 00:19:06,240
Speaker 1: Can you know who I'm texting her? She's always in

441
00:19:06,240 --> 00:19:08,840
Speaker 1: a place that I didn't realize that you're on another trip. Okay,

442
00:19:08,880 --> 00:19:10,320
Speaker 1: I just assume she's not home ever.

443
00:19:10,440 --> 00:19:12,840
Speaker 2: Literally, her and her husband like once a quarter they're

444
00:19:12,920 --> 00:19:15,560
Speaker 2: abroad somewhere, right, No, it's like once a month or

445
00:19:15,600 --> 00:19:18,400
Speaker 2: really not abroad, but there's somewhere that's not here. Okay, yeah,

446
00:19:18,440 --> 00:19:20,160
Speaker 2: even still, that's pretty fun. It's a lot. It's a lot,

447
00:19:20,600 --> 00:19:21,840
Speaker 2: and that's great cool for them.

448
00:19:22,240 --> 00:19:24,040
Speaker 1: So it makes a lot more sense for a couple

449
00:19:24,119 --> 00:19:28,480
Speaker 1: like that to prioritize points and less for our family.

450
00:19:28,880 --> 00:19:31,359
Speaker 1: Totally think about where you're at and how hard you

451
00:19:31,440 --> 00:19:35,560
Speaker 1: want to go after getting those superior, potentially superior awards.

452
00:19:35,840 --> 00:19:38,320
Speaker 1: I think that all plays into which is gonna make

453
00:19:38,320 --> 00:19:40,520
Speaker 1: the most sense for you, Austin and for everyone else

454
00:19:40,520 --> 00:19:42,560
Speaker 1: out there are Matt, we got more to get to,

455
00:19:43,119 --> 00:19:46,000
Speaker 1: including we're going to talk about the credit bureaus and

456
00:19:46,119 --> 00:19:49,160
Speaker 1: how you go about getting your credit score. One listener

457
00:19:49,200 --> 00:19:51,200
Speaker 1: got a little confused about where to go. Got to

458
00:19:51,240 --> 00:19:53,000
Speaker 1: let us straight. We'll talk about that and more right

459
00:19:53,040 --> 00:19:53,439
Speaker 1: after this.

460
00:20:01,280 --> 00:20:03,639
Speaker 2: All right, Joel, we are back from the break. Let's

461
00:20:03,720 --> 00:20:06,520
Speaker 2: now hear from a listener who took a lump sum

462
00:20:06,720 --> 00:20:08,800
Speaker 2: and invested it, but he's trying to figure out what

463
00:20:08,880 --> 00:20:10,120
Speaker 2: to do next.

464
00:20:10,600 --> 00:20:15,080
Speaker 4: Hello, this is David in California, longtime listener. Thank you

465
00:20:15,200 --> 00:20:18,840
Speaker 4: Joel and Matt for all the episodes. A few years back,

466
00:20:19,080 --> 00:20:22,120
Speaker 4: my wife and I were fortunate to receive a lump

467
00:20:22,160 --> 00:20:25,600
Speaker 4: sum of money that we put into a joint brokerage account,

468
00:20:25,960 --> 00:20:30,000
Speaker 4: investing in an S and P five hundred EFT. We

469
00:20:30,000 --> 00:20:32,800
Speaker 4: were planning on letting it grow a few years and

470
00:20:32,840 --> 00:20:37,040
Speaker 4: then taking some out each year to help pay our mortgage.

471
00:20:37,480 --> 00:20:40,000
Speaker 4: I'm wondering now if it would be better to stick

472
00:20:40,040 --> 00:20:43,359
Speaker 4: with that plan and pay fifteen percent capital gains on

473
00:20:43,400 --> 00:20:47,119
Speaker 4: a growth each year when we take money out. The

474
00:20:47,200 --> 00:20:51,600
Speaker 4: alternative is to contribute less money into our roth IRA

475
00:20:51,800 --> 00:20:55,000
Speaker 4: accounts each year and let the money in the joint

476
00:20:55,040 --> 00:20:59,359
Speaker 4: brokerage account grow. Two things seem to make this a

477
00:20:59,400 --> 00:21:03,520
Speaker 4: tough choice. Number One, the money in the joint brokerage

478
00:21:03,560 --> 00:21:08,600
Speaker 4: account is already post tax dollars number two. If we

479
00:21:08,680 --> 00:21:13,200
Speaker 4: retire early, as we are planning, before we claim social Security,

480
00:21:13,920 --> 00:21:17,480
Speaker 4: we should be able to deduct most, possibly all of

481
00:21:17,520 --> 00:21:21,080
Speaker 4: the money out of our joint brokerage account while in

482
00:21:21,119 --> 00:21:25,960
Speaker 4: the zero percent bracket for capital gains. With California taxing

483
00:21:25,960 --> 00:21:28,720
Speaker 4: and growth roughly two or three percent at the state level,

484
00:21:30,119 --> 00:21:33,440
Speaker 4: I would like to prioritize the WROTH until I am

485
00:21:33,520 --> 00:21:37,520
Speaker 4: comfortable that we will have enough money combined with Social

486
00:21:37,520 --> 00:21:41,000
Speaker 4: Security in a couple of other sources to fund our

487
00:21:41,200 --> 00:21:45,800
Speaker 4: lives age seventy and on. But once we reach that target,

488
00:21:46,440 --> 00:21:51,040
Speaker 4: I am thinking of prioritizing maintaining the joint brokerage account

489
00:21:51,280 --> 00:21:55,760
Speaker 4: over continuing to fund the WROTH. Is this a crazy idea?

490
00:21:56,520 --> 00:21:56,919
Speaker 4: Thank you?

491
00:21:57,640 --> 00:21:58,120
Speaker 2: Oh, Matt.

492
00:21:58,160 --> 00:22:00,960
Speaker 1: I like this question, And first things first, I think

493
00:22:00,960 --> 00:22:02,920
Speaker 1: we have to just say that David made a really

494
00:22:03,000 --> 00:22:06,920
Speaker 1: good move investing the lump sum that is. That's another

495
00:22:06,960 --> 00:22:08,880
Speaker 1: question we get sometimes is like do I dollar cost

496
00:22:08,960 --> 00:22:10,280
Speaker 1: average or do I just.

497
00:22:10,240 --> 00:22:12,719
Speaker 2: Eas into the shallow end YEA like one step at

498
00:22:12,720 --> 00:22:14,760
Speaker 2: a time, kind of got to get past that one

499
00:22:14,760 --> 00:22:17,280
Speaker 2: part where it's extra. Or do I just like dive

500
00:22:17,680 --> 00:22:18,640
Speaker 2: dive in head first, yeah?

501
00:22:18,760 --> 00:22:21,960
Speaker 1: Or do I instead of investing it, do I pay

502
00:22:21,960 --> 00:22:23,040
Speaker 1: off the debt immediately?

503
00:22:23,520 --> 00:22:23,800
Speaker 4: Where?

504
00:22:24,040 --> 00:22:26,680
Speaker 1: And it seems like David made the right decision because

505
00:22:26,840 --> 00:22:29,760
Speaker 1: think about how much better he's done by investing that

506
00:22:29,840 --> 00:22:32,560
Speaker 1: money versus paying off the debt. And it's not like

507
00:22:32,760 --> 00:22:34,920
Speaker 1: we want debt to linger forever that we're big fans

508
00:22:34,920 --> 00:22:37,040
Speaker 1: of debt or anything like that. And we know that

509
00:22:37,080 --> 00:22:39,520
Speaker 1: some folks are incredibly debt averse, and I think everyone

510
00:22:39,600 --> 00:22:44,159
Speaker 1: kind of has to decide, based on their own individual constitution,

511
00:22:44,560 --> 00:22:46,399
Speaker 1: what they should do in a situation like that. But

512
00:22:46,440 --> 00:22:49,720
Speaker 1: the truth is, a three percent mortgage, in our estimation,

513
00:22:49,760 --> 00:22:52,280
Speaker 1: should be a very low priority for all listeners who

514
00:22:52,320 --> 00:22:55,040
Speaker 1: want to build wealth. There's just there just isn't a

515
00:22:55,080 --> 00:22:58,040
Speaker 1: great argument for rushing to pay that off ahead of

516
00:22:58,040 --> 00:22:59,240
Speaker 1: some of those other financial goals.

517
00:22:59,320 --> 00:23:01,360
Speaker 2: Yeah, that that's true, even if you end up having

518
00:23:01,359 --> 00:23:04,800
Speaker 2: to pay capital gains tax. But it sounds like you

519
00:23:04,840 --> 00:23:07,000
Speaker 2: are planning on reducing your income to such an extent

520
00:23:07,320 --> 00:23:09,800
Speaker 2: that you can tap your brodge account and not owe

521
00:23:09,920 --> 00:23:10,920
Speaker 2: any federal.

522
00:23:10,600 --> 00:23:12,879
Speaker 1: Tax at all, which most people don't even realize that's

523
00:23:12,920 --> 00:23:13,560
Speaker 1: a possibility.

524
00:23:13,640 --> 00:23:13,680
Speaker 3: No.

525
00:23:13,840 --> 00:23:16,119
Speaker 2: Yeah, So we typically refer to the long term capital

526
00:23:16,160 --> 00:23:18,960
Speaker 2: gains tax rate as being fifteen percent, and that is

527
00:23:19,000 --> 00:23:22,160
Speaker 2: true for the vast majority of folks. But on one end,

528
00:23:22,240 --> 00:23:24,960
Speaker 2: I will say, folks who sell a ton of appreciated

529
00:23:24,960 --> 00:23:27,600
Speaker 2: securities are is actually going to pay more than fifteen percent.

530
00:23:27,600 --> 00:23:30,280
Speaker 2: They're going to pay twenty percent if you have an

531
00:23:30,280 --> 00:23:33,160
Speaker 2: adjusted gross income of over five hundred and eighty three

532
00:23:33,200 --> 00:23:36,240
Speaker 2: thousand dollars if you are married filing jointly, And then

533
00:23:36,280 --> 00:23:39,840
Speaker 2: others who can keep their total taxable income below ninety

534
00:23:39,920 --> 00:23:43,120
Speaker 2: four thousand, again married filing jointly, well, you can pay

535
00:23:43,160 --> 00:23:46,480
Speaker 2: a long term capital gain tax rate of zero percent. Yeah.

536
00:23:46,760 --> 00:23:49,399
Speaker 1: The fifteen percent number gets thrown around so frequently and

537
00:23:49,520 --> 00:23:53,080
Speaker 1: less typical most people don't realize that there are two

538
00:23:53,119 --> 00:23:55,520
Speaker 1: other potential rates for capital gains.

539
00:23:55,600 --> 00:23:57,919
Speaker 2: Yeah, and you know, going from fifteen to twenty percent

540
00:23:58,160 --> 00:24:00,960
Speaker 2: not the end of the world, not ideal, but going

541
00:24:00,960 --> 00:24:03,800
Speaker 2: from twenty percent to zero that's pretty huge. And for

542
00:24:04,000 --> 00:24:08,080
Speaker 2: smart folks in the fire camp financial independence retire early.

543
00:24:08,480 --> 00:24:11,240
Speaker 2: This is a way to maintain access to funds where

544
00:24:11,240 --> 00:24:15,639
Speaker 2: you have added flexibility without paying extra tax for that perk. Yeah.

545
00:24:15,760 --> 00:24:20,200
Speaker 1: Typically when we're talking about avoiding tax, we're talking about

546
00:24:20,560 --> 00:24:23,240
Speaker 1: the accounts that you're that you're choosing and the taxable

547
00:24:23,280 --> 00:24:26,880
Speaker 1: brokerage account, it offers that additional flexibility, but hey, you're

548
00:24:26,880 --> 00:24:29,320
Speaker 1: gonna pay the tax man. That extra pound of flesh

549
00:24:29,640 --> 00:24:33,679
Speaker 1: is garnered, Matt from the taxable brokerage account. Unless unless

550
00:24:33,720 --> 00:24:36,520
Speaker 1: you are incredibly super duper strategic, like David is trying

551
00:24:36,520 --> 00:24:39,199
Speaker 1: to be here, and he mentioned, I.

552
00:24:39,200 --> 00:24:40,720
Speaker 2: Don't even know if you have to be that strategic,

553
00:24:40,760 --> 00:24:42,800
Speaker 2: you just have. It's this is a vote in favor

554
00:24:42,840 --> 00:24:45,600
Speaker 2: of frugality because if you can get your low income

555
00:24:46,400 --> 00:24:48,080
Speaker 2: or lower income both, because you're going to need to both,

556
00:24:48,080 --> 00:24:50,560
Speaker 2: which can be natural as you enter into your more

557
00:24:50,840 --> 00:24:52,240
Speaker 2: you know, more chill retirement years.

558
00:24:52,280 --> 00:24:54,240
Speaker 1: Yeah, And what makes it difficult to pull this off

559
00:24:54,240 --> 00:24:58,440
Speaker 1: typically is if you are earning a meaningful salary and

560
00:24:58,560 --> 00:25:02,119
Speaker 1: then you also sell some of your appreciated security, some

561
00:25:02,160 --> 00:25:06,159
Speaker 1: of the stocks or ETFs that you've purchased, you're going

562
00:25:06,200 --> 00:25:08,040
Speaker 1: to push yourself above that threshold. You're going to pay

563
00:25:08,040 --> 00:25:10,560
Speaker 1: the fifteen percent. So you have to be careful about

564
00:25:10,760 --> 00:25:13,840
Speaker 1: when you make that sale and what your income is

565
00:25:14,160 --> 00:25:16,239
Speaker 1: likely going to be in that given year to kind

566
00:25:16,280 --> 00:25:19,320
Speaker 1: of get yourself with blow and into that zero percent

567
00:25:19,359 --> 00:25:22,320
Speaker 1: capital gains tax rate threshold. And so normally what we

568
00:25:22,359 --> 00:25:24,520
Speaker 1: would tell you, David, as we prioritize the roth Ira.

569
00:25:24,760 --> 00:25:28,160
Speaker 1: We love roth IRA's, we'd hate to see you abandon

570
00:25:28,200 --> 00:25:30,800
Speaker 1: that account, given how good it is, how flexible it

571
00:25:30,840 --> 00:25:33,480
Speaker 1: can be for early retirees too, because of the fact

572
00:25:33,480 --> 00:25:36,320
Speaker 1: that you can take those contributions back out at any

573
00:25:36,320 --> 00:25:39,160
Speaker 1: point in time in the future. It's just not as

574
00:25:39,280 --> 00:25:42,160
Speaker 1: flexible as a brokerage account. And if you really can

575
00:25:42,720 --> 00:25:46,159
Speaker 1: jump through those taxable income hoops, it's actually going to

576
00:25:46,200 --> 00:25:49,359
Speaker 1: be treated pretty similarly from a tax perspective, which is

577
00:25:49,400 --> 00:25:52,320
Speaker 1: kind of crazy. So, in a very rare admission, this

578
00:25:52,359 --> 00:25:56,520
Speaker 1: is not widely dispensed advice, I think I think I'm

579
00:25:56,520 --> 00:25:58,480
Speaker 1: willing to concede on this one, Matt, that a brokerage

580
00:25:58,480 --> 00:26:02,320
Speaker 1: account might slightly add oh yeah, the wroth for them,

581
00:26:02,359 --> 00:26:06,000
Speaker 1: So I think reducing wroth contributions in favor of keeping

582
00:26:06,040 --> 00:26:09,439
Speaker 1: that money in the tactable brokerage account makes sense to me.

583
00:26:09,840 --> 00:26:10,199
Speaker 4: Yeah.

584
00:26:10,400 --> 00:26:13,440
Speaker 2: Yeah, Well, and you said something about totally like abandoning

585
00:26:13,520 --> 00:26:16,200
Speaker 2: his wroth. It's not like as hardcore as that either,

586
00:26:16,240 --> 00:26:18,560
Speaker 2: because he's he's still got the wroth, it's still hanging out.

587
00:26:18,600 --> 00:26:20,399
Speaker 2: He's just not necessarily going to be funding it to

588
00:26:20,440 --> 00:26:23,240
Speaker 2: the absolute max, which again I think is you know,

589
00:26:23,280 --> 00:26:25,679
Speaker 2: it's totally fine because what that means, though, is that

590
00:26:25,680 --> 00:26:27,720
Speaker 2: if he feels comfortable enough with the money that he

591
00:26:27,800 --> 00:26:30,199
Speaker 2: set aside in his retirement accounts, like, that's what we

592
00:26:30,240 --> 00:26:33,040
Speaker 2: call coast fire, and that's you have Essentially, you can

593
00:26:33,040 --> 00:26:34,440
Speaker 2: take your foot off the gas a little bit. You

594
00:26:34,480 --> 00:26:37,440
Speaker 2: can coast because you can tell that you've kind of, oh,

595
00:26:37,440 --> 00:26:39,160
Speaker 2: I'm getting really close to the crest of this hill,

596
00:26:39,359 --> 00:26:41,919
Speaker 2: at which point I can let the momentum right and

597
00:26:41,960 --> 00:26:45,040
Speaker 2: in this case that's your investments do the vast majority

598
00:26:45,080 --> 00:26:46,760
Speaker 2: of the work for you. And it sounds like that

599
00:26:46,760 --> 00:26:50,120
Speaker 2: that's close to where David is getting ready to arrive at.

600
00:26:50,160 --> 00:26:53,639
Speaker 2: But I think the question really boils down boils down

601
00:26:53,680 --> 00:26:57,480
Speaker 2: to is whether or not to diminish roth contributions in

602
00:26:57,560 --> 00:27:00,400
Speaker 2: order to accelerate your mortgage debt payoff. In one hand,

603
00:27:00,400 --> 00:27:02,680
Speaker 2: it sounded like he was talking about taking some money

604
00:27:02,720 --> 00:27:05,400
Speaker 2: out of the brokerage account, like maybe month to month

605
00:27:05,480 --> 00:27:07,800
Speaker 2: or year to year, in order to whether or not

606
00:27:07,840 --> 00:27:09,399
Speaker 2: he was talking about paying off the mortgage early or

607
00:27:09,440 --> 00:27:12,600
Speaker 2: even to support his cost of living, because it almost

608
00:27:12,600 --> 00:27:14,600
Speaker 2: sounded like he was saying, well, if we take some

609
00:27:14,640 --> 00:27:16,800
Speaker 2: of those investments out, then we can continue to fund

610
00:27:16,840 --> 00:27:20,240
Speaker 2: our wroth. Ira. I'm not totally sure if that's what

611
00:27:20,280 --> 00:27:22,320
Speaker 2: he was saying, but going back to the beginning, it's

612
00:27:22,359 --> 00:27:26,280
Speaker 2: not something that we're big fans of, specifically eliminating eliminating

613
00:27:26,400 --> 00:27:31,520
Speaker 2: that mortgage. The dynamics of early mortgage payoff it's changed

614
00:27:31,640 --> 00:27:34,560
Speaker 2: significantly given the zero risk ability for many folks out there,

615
00:27:34,600 --> 00:27:37,640
Speaker 2: for virtually everyone to earn more in their savings accounts

616
00:27:37,640 --> 00:27:40,439
Speaker 2: than they can by paying off a three ish percent

617
00:27:40,600 --> 00:27:44,240
Speaker 2: mortgage loan, and the calculations they look different if rates

618
00:27:44,240 --> 00:27:47,800
Speaker 2: on savings drop significantly or for folks who have a

619
00:27:47,840 --> 00:27:50,879
Speaker 2: mortgage rate that's let's say over five percent, But if

620
00:27:50,920 --> 00:27:52,920
Speaker 2: you've got a great mortgage rate, then I think I

621
00:27:52,920 --> 00:27:57,320
Speaker 2: obviously just continuing to prioritize those investments. First, your wrath

622
00:27:57,520 --> 00:27:58,720
Speaker 2: gets to the point to where you feel like you

623
00:27:58,720 --> 00:28:01,480
Speaker 2: have enough in there, let that money within that brokerage

624
00:28:01,480 --> 00:28:03,600
Speaker 2: account man, let that continue to ride, because if you

625
00:28:03,680 --> 00:28:06,440
Speaker 2: are looking to do a little bit of early retirement

626
00:28:06,520 --> 00:28:08,159
Speaker 2: or you are looking to draw some of the funds,

627
00:28:08,400 --> 00:28:11,560
Speaker 2: the ability to see your earned income reduced to where

628
00:28:11,560 --> 00:28:13,600
Speaker 2: you're not taxed at all in that that's fantastic.

629
00:28:13,680 --> 00:28:17,040
Speaker 1: Yeah, so pay off your mortgage as agreed, unless you

630
00:28:17,720 --> 00:28:21,280
Speaker 1: have just a burning desire to see it eradicated more quickly.

631
00:28:21,520 --> 00:28:22,960
Speaker 1: But Matt and I just don't feel the need to

632
00:28:22,960 --> 00:28:25,840
Speaker 1: spur anyone in that direction totally if you've got a

633
00:28:25,840 --> 00:28:28,040
Speaker 1: really low rate, and I think our advice, again, Matt,

634
00:28:28,080 --> 00:28:30,640
Speaker 1: is subject to change. If let's say the Fed cut

635
00:28:30,720 --> 00:28:34,720
Speaker 1: rates significantly and savers are now experiencing one and a

636
00:28:34,760 --> 00:28:37,440
Speaker 1: half to two percent rates again like they did many

637
00:28:37,480 --> 00:28:41,040
Speaker 1: years ago, just crummy rates on savings, then yeah, why

638
00:28:41,040 --> 00:28:43,040
Speaker 1: would you keep up money locked up in savings that

639
00:28:43,080 --> 00:28:45,960
Speaker 1: you could pay down debt that has a higher interest rate.

640
00:28:46,600 --> 00:28:50,120
Speaker 1: The calculations change, But given the facts on the ground

641
00:28:50,280 --> 00:28:53,480
Speaker 1: and the reality that rates are not likely to come

642
00:28:53,480 --> 00:28:56,280
Speaker 1: down significantly anytime soon, I think of a three percent

643
00:28:56,320 --> 00:29:00,320
Speaker 1: mortgage as less of a liability than I think some

644
00:29:00,320 --> 00:29:03,120
Speaker 1: folks who are getting closer to that retirement age think

645
00:29:03,160 --> 00:29:05,719
Speaker 1: of it. It's not like the debt is great, but

646
00:29:05,760 --> 00:29:06,960
Speaker 1: it's also not bad debt.

647
00:29:07,120 --> 00:29:09,280
Speaker 2: All right, Let's hear from a listener who is thinking

648
00:29:09,360 --> 00:29:12,560
Speaker 2: about purchasing her first home in all the right ways.

649
00:29:12,880 --> 00:29:15,320
Speaker 5: Hi, Matt Angel, this is Sarah from Brooklyn, New York.

650
00:29:15,480 --> 00:29:17,200
Speaker 5: My husband and I are exploring the best way to

651
00:29:17,200 --> 00:29:20,000
Speaker 5: invest our savings into real estate. While we know we

652
00:29:20,080 --> 00:29:22,600
Speaker 5: might not find exactly what we want right now, we're

653
00:29:22,600 --> 00:29:26,320
Speaker 5: approaching this potential purchase as both a future rental property

654
00:29:26,480 --> 00:29:28,600
Speaker 5: and a stepping stone to buying a larger condo in

655
00:29:28,640 --> 00:29:31,719
Speaker 5: three to five years. We currently rent a two bedroom,

656
00:29:31,840 --> 00:29:34,640
Speaker 5: two bath apartment with a private garden at fourteen percent

657
00:29:34,640 --> 00:29:37,960
Speaker 5: plow market rate. We have enough savings to cover a

658
00:29:38,080 --> 00:29:41,360
Speaker 5: twenty percent down payment, closing cost and three months of

659
00:29:41,400 --> 00:29:44,720
Speaker 5: expenses for either a one bedroom, one bath unit in

660
00:29:44,760 --> 00:29:49,040
Speaker 5: a more desirable location closer to Manhattan, or a two bedroom,

661
00:29:49,080 --> 00:29:53,160
Speaker 5: one bath condo in a developing neighborhood further out. Our

662
00:29:53,240 --> 00:29:55,680
Speaker 5: ultimate goal is to own a two bedroom, two bath

663
00:29:55,720 --> 00:29:58,960
Speaker 5: condo in a great area. We're open to making sacrifices,

664
00:29:59,160 --> 00:30:02,920
Speaker 5: whether that means buying in a developing location, downsizing to

665
00:30:02,960 --> 00:30:07,280
Speaker 5: a smaller unit, or waiting altogether. For context, We have

666
00:30:07,360 --> 00:30:10,440
Speaker 5: no debt. Our combined income is three hundred and eight thousand.

667
00:30:11,040 --> 00:30:13,560
Speaker 5: We invest in our four one ks. We both have

668
00:30:13,720 --> 00:30:17,080
Speaker 5: credit scores above eight hundred, and our savings is currently

669
00:30:17,120 --> 00:30:19,720
Speaker 5: in a high yield account. We truly love your show

670
00:30:19,760 --> 00:30:22,000
Speaker 5: and appreciate all the advice you've shared over the years.

671
00:30:22,160 --> 00:30:26,200
Speaker 1: Thank you, Oh, Matt, I love love the analytical approach

672
00:30:26,640 --> 00:30:29,840
Speaker 1: to buying real estate, right it can be such an

673
00:30:29,880 --> 00:30:34,560
Speaker 1: emotional purchase. But that's like one of the first suggestions

674
00:30:34,560 --> 00:30:36,840
Speaker 1: typically when you're going out to buy or to look

675
00:30:36,880 --> 00:30:40,160
Speaker 1: at a property is to not get emotionally attached, because

676
00:30:40,320 --> 00:30:42,240
Speaker 1: the person who gets emotionally attached to a piece of

677
00:30:42,280 --> 00:30:45,000
Speaker 1: real estate, to a particular house, is often going to

678
00:30:45,280 --> 00:30:49,040
Speaker 1: lose financial perspective. They might get out over their skis.

679
00:30:49,840 --> 00:30:51,560
Speaker 1: And you know, we don't always get what we want

680
00:30:51,680 --> 00:30:54,200
Speaker 1: with our first real estate purchase either, or at least

681
00:30:54,240 --> 00:30:56,360
Speaker 1: not all that we want. And I do think this

682
00:30:56,520 --> 00:30:58,040
Speaker 1: is going to sound weird, but I think settling for

683
00:30:58,120 --> 00:31:00,840
Speaker 1: less can be the best financial move that we could

684
00:31:00,880 --> 00:31:04,200
Speaker 1: possibly make thinking about the first purchase, Like even if

685
00:31:04,240 --> 00:31:06,280
Speaker 1: you're going to live in the home like an investor,

686
00:31:06,400 --> 00:31:09,360
Speaker 1: that can help people from a long term ownership perspective.

687
00:31:09,480 --> 00:31:11,960
Speaker 1: So I think sometimes people, Matt, they've watched a little

688
00:31:12,000 --> 00:31:15,640
Speaker 1: too much HGTV, and so maybe their desires for what

689
00:31:15,640 --> 00:31:18,000
Speaker 1: that first home is going to look like actually outstrips

690
00:31:18,040 --> 00:31:20,880
Speaker 1: their budget. So I think some realism is important when

691
00:31:20,880 --> 00:31:22,120
Speaker 1: we're talking about buying.

692
00:31:21,880 --> 00:31:23,920
Speaker 2: Real estate totally, and even though you might be quote

693
00:31:23,960 --> 00:31:26,760
Speaker 2: unquote settling, that doesn't mean you don't have a home

694
00:31:26,960 --> 00:31:29,640
Speaker 2: right like, it will provide that initial purchase is going

695
00:31:29,680 --> 00:31:31,360
Speaker 2: to give you a roof over your head, but it

696
00:31:31,400 --> 00:31:34,280
Speaker 2: will also give you some options because as you live

697
00:31:34,280 --> 00:31:36,600
Speaker 2: in it and you pay down that mortgage, the equity

698
00:31:36,640 --> 00:31:38,640
Speaker 2: that you're building up, well, it can be used to

699
00:31:38,720 --> 00:31:41,360
Speaker 2: aid your down payment for that next house. But that

700
00:31:41,440 --> 00:31:43,560
Speaker 2: being said, we'd rather you buy a place that would

701
00:31:43,560 --> 00:31:46,320
Speaker 2: make sense as a rental when you're ready for the bigger,

702
00:31:46,360 --> 00:31:48,560
Speaker 2: fancier condo. And that means doing the hard work of

703
00:31:48,560 --> 00:31:52,840
Speaker 2: saving up another twenty percent down ideally for the next place,

704
00:31:52,840 --> 00:31:55,880
Speaker 2: and not rolling that equity over into the to the

705
00:31:55,920 --> 00:31:58,320
Speaker 2: new house. But the long term benefit of taking the

706
00:31:58,440 --> 00:32:00,400
Speaker 2: you know, it's sort of like a steppingstone approach to

707
00:32:00,560 --> 00:32:02,960
Speaker 2: getting the home that you ultimately want. I think it's

708
00:32:03,000 --> 00:32:04,720
Speaker 2: going to pay off in a significant way when we're

709
00:32:04,720 --> 00:32:07,480
Speaker 2: talking about wealth building. But we do want to challenge you.

710
00:32:07,840 --> 00:32:09,400
Speaker 2: It's because it did sound like she had a couple

711
00:32:09,400 --> 00:32:11,840
Speaker 2: options laid out before her where it's like, well, we

712
00:32:11,880 --> 00:32:13,640
Speaker 2: could kind of go from this house and then we'll

713
00:32:13,640 --> 00:32:14,920
Speaker 2: get rid of that one, and then we can get

714
00:32:14,920 --> 00:32:17,600
Speaker 2: the dream place, or maybe we'll hang onto it, and

715
00:32:17,640 --> 00:32:20,280
Speaker 2: we would absolutely challenge you to hang on to it

716
00:32:20,280 --> 00:32:21,160
Speaker 2: if at all possible.

717
00:32:21,200 --> 00:32:24,920
Speaker 1: There's something so powerful about buying something that's that you

718
00:32:24,960 --> 00:32:28,719
Speaker 1: can easily afford maintaining a much larger savings rate than

719
00:32:28,760 --> 00:32:30,719
Speaker 1: most of your peers would likely be able to have,

720
00:32:31,080 --> 00:32:32,600
Speaker 1: so that you can afford the thing you really want

721
00:32:32,640 --> 00:32:34,840
Speaker 1: later on down the line, when some of your peers

722
00:32:34,880 --> 00:32:37,560
Speaker 1: are like maybe stuck in the first place that they

723
00:32:37,560 --> 00:32:40,080
Speaker 1: bought and they don't have the financial freedom. Makes me

724
00:32:40,080 --> 00:32:42,760
Speaker 1: think even about like a car purchase, Matt, like holding

725
00:32:42,760 --> 00:32:45,000
Speaker 1: on to my five Vacura means when I want to

726
00:32:45,280 --> 00:32:47,600
Speaker 1: at some point when the new Rivin R two comes out,

727
00:32:47,760 --> 00:32:49,200
Speaker 1: I'm going to be able to afford it, because for

728
00:32:49,240 --> 00:32:50,920
Speaker 1: so many years you're going to plumb down cash for

729
00:32:50,920 --> 00:32:53,640
Speaker 1: that back I've had this like non existent car payment.

730
00:32:53,640 --> 00:32:56,560
Speaker 1: I've paid almost nothing for automobiles, and so then I'll

731
00:32:56,600 --> 00:32:58,360
Speaker 1: be able to pay a lot and guess what, I'll

732
00:32:58,360 --> 00:33:00,200
Speaker 1: own it free and clear, and I won't have if

733
00:33:00,200 --> 00:33:00,920
Speaker 1: any sort of car.

734
00:33:00,840 --> 00:33:03,200
Speaker 2: Payment attached to me. Whereas most people, if they go

735
00:33:03,280 --> 00:33:05,200
Speaker 2: for it too early, they got a car payment. That's

736
00:33:05,240 --> 00:33:06,960
Speaker 2: no fun. Would you be embarrassed if we had matching

737
00:33:07,040 --> 00:33:09,840
Speaker 2: rivians matching car twos? Are you doing it too? No?

738
00:33:10,120 --> 00:33:12,360
Speaker 1: Okay, Well, I don't know if I'm going to either.

739
00:33:12,560 --> 00:33:14,080
Speaker 1: I might be too cheap and I might have just

740
00:33:14,200 --> 00:33:16,480
Speaker 1: other financial priorities. So we'll see if I actually do

741
00:33:16,560 --> 00:33:18,400
Speaker 1: it or not. But I think the good news for

742
00:33:18,440 --> 00:33:21,120
Speaker 1: Sarah here is she's already got so much money saved, right,

743
00:33:21,280 --> 00:33:24,000
Speaker 1: and her rent is below market level, which is a

744
00:33:24,040 --> 00:33:26,560
Speaker 1: meaningful thing in New York City. That's yeah, fourteen percent

745
00:33:26,600 --> 00:33:27,480
Speaker 1: below in New York City.

746
00:33:27,480 --> 00:33:29,680
Speaker 2: That's like a unique advantage that they have many hundreds

747
00:33:29,680 --> 00:33:31,000
Speaker 2: of them, which tells me that they don't need to

748
00:33:31,000 --> 00:33:33,440
Speaker 2: be in any sort of rush, you know, exactly like they

749
00:33:33,560 --> 00:33:36,000
Speaker 2: gating this chill. I think, yeah, just keep paying it out.

750
00:33:36,040 --> 00:33:38,600
Speaker 1: I think if they're not interested in becoming a landlord,

751
00:33:38,680 --> 00:33:43,400
Speaker 1: and they're wary of the substantial transaction costs that come

752
00:33:43,440 --> 00:33:47,160
Speaker 1: with buying and selling real estate, which everyone knows right

753
00:33:47,240 --> 00:33:49,920
Speaker 1: that that can be prohibitive, keeping the bird in the

754
00:33:49,960 --> 00:33:53,160
Speaker 1: hand of the cheap apartment rent and continuing to save

755
00:33:53,520 --> 00:33:56,720
Speaker 1: that might be the even more beneficial move here. There's

756
00:33:56,760 --> 00:33:59,120
Speaker 1: just I don't think there's any rush to get into

757
00:33:59,160 --> 00:34:01,880
Speaker 1: something if you aren't planning on holding on to it

758
00:34:01,920 --> 00:34:02,920
Speaker 1: for more than five years.

759
00:34:03,000 --> 00:34:05,720
Speaker 2: Yeah, she said that they've got a are they currently

760
00:34:05,720 --> 00:34:07,640
Speaker 2: into two to one that's got like a private garden,

761
00:34:07,920 --> 00:34:09,640
Speaker 2: And I kind of could imagine what that looked like,

762
00:34:09,680 --> 00:34:12,280
Speaker 2: but I wasn't totally sure, so I googled it. Uh,

763
00:34:12,320 --> 00:34:14,280
Speaker 2: I mean, it's not like she's living in whatever picture

764
00:34:14,280 --> 00:34:17,640
Speaker 2: I pulled up that happened to populate Google Images, But

765
00:34:18,040 --> 00:34:20,480
Speaker 2: did you pink Sarah's apartment? A private A private garden

766
00:34:20,520 --> 00:34:22,799
Speaker 2: apartment in New York City looks like the coolest thing ever. Like,

767
00:34:22,840 --> 00:34:26,200
Speaker 2: there's all these pictures of these awesome, these natural spaces

768
00:34:26,200 --> 00:34:28,000
Speaker 2: in the back of an apartment. It's in the middle

769
00:34:28,040 --> 00:34:29,480
Speaker 2: of a city, but you kind of got like your

770
00:34:29,480 --> 00:34:32,759
Speaker 2: own tiny green space, green oasis with like you know,

771
00:34:32,840 --> 00:34:37,239
Speaker 2: Japanese maple trees and lush bushes and spot for your

772
00:34:37,280 --> 00:34:39,759
Speaker 2: dog to go to the bathroom. I guess as well,

773
00:34:39,760 --> 00:34:42,200
Speaker 2: if that's something that you're into. But yeah, like that

774
00:34:42,320 --> 00:34:44,719
Speaker 2: coupled with the fact that so you've got this amazing place,

775
00:34:44,760 --> 00:34:48,120
Speaker 2: but then also it's, uh, you're getting a lesson market rent. Man,

776
00:34:48,160 --> 00:34:50,560
Speaker 2: I'd be hanging out there for as long as I could.

777
00:34:50,600 --> 00:34:53,279
Speaker 1: I think it's another option that should be considered. And

778
00:34:53,280 --> 00:34:55,840
Speaker 1: I think it's just important to note that it's it's

779
00:34:55,880 --> 00:34:58,919
Speaker 1: a gamble, right, the shorter your ownership timeline is likely

780
00:34:59,000 --> 00:35:01,400
Speaker 1: to be. But I think it's also you know, Sarah

781
00:35:01,400 --> 00:35:03,280
Speaker 1: sounds like she's keen to get on the property ladder,

782
00:35:03,400 --> 00:35:05,680
Speaker 1: and she's willing to stay put a bit longer than

783
00:35:05,719 --> 00:35:08,239
Speaker 1: she's planned to if need be. And if that's the case,

784
00:35:08,280 --> 00:35:10,680
Speaker 1: you're probably in a position to buy. So this is

785
00:35:10,760 --> 00:35:13,120
Speaker 1: a choose you're on a venture book Matt from the

786
00:35:13,239 --> 00:35:13,880
Speaker 1: nineteen nineties.

787
00:35:13,960 --> 00:35:17,960
Speaker 2: Totally, Yeah, And I think not counting on appreciation is

788
00:35:18,000 --> 00:35:20,160
Speaker 2: important too, like making sure that you are going to

789
00:35:20,200 --> 00:35:22,359
Speaker 2: hang on to it for the long term, because it's

790
00:35:22,480 --> 00:35:25,640
Speaker 2: just a safer bet from okay, are we I can't

791
00:35:25,680 --> 00:35:28,000
Speaker 2: imagine that they would be underwater in that property. But

792
00:35:28,239 --> 00:35:30,320
Speaker 2: as we're talking about timing, it's worth thinking through not

793
00:35:30,440 --> 00:35:33,000
Speaker 2: just owning that property for like at least five years,

794
00:35:33,040 --> 00:35:35,200
Speaker 2: but also living in it for two out of the

795
00:35:35,200 --> 00:35:38,040
Speaker 2: past five years. Because let's say they're like, okay, let's

796
00:35:38,120 --> 00:35:39,759
Speaker 2: we'll do it. Man, as you will say we will

797
00:35:39,960 --> 00:35:41,680
Speaker 2: buy that thing, will hang on to it we'll live

798
00:35:41,760 --> 00:35:44,000
Speaker 2: in it. But let's say they try out the whole

799
00:35:44,080 --> 00:35:47,000
Speaker 2: landlording thing and they're like, man, this really isn't for us.

800
00:35:47,360 --> 00:35:48,759
Speaker 2: You do want to make sure that you have lived

801
00:35:48,800 --> 00:35:50,439
Speaker 2: in that thing for at least two of the past

802
00:35:50,480 --> 00:35:52,560
Speaker 2: five years, because if you do want to unload the

803
00:35:52,600 --> 00:35:55,200
Speaker 2: property you don't want to be a landlord. Well, it

804
00:35:55,320 --> 00:35:57,120
Speaker 2: needs to have been a primary residence for you to

805
00:35:57,200 --> 00:36:00,439
Speaker 2: avoid any capital gains tax on that property as a couple,

806
00:36:00,760 --> 00:36:04,000
Speaker 2: well up to five hundred thousand dollars as married, finally jointly.

807
00:36:04,120 --> 00:36:05,960
Speaker 2: So that's something else to keep in mind too, that

808
00:36:06,239 --> 00:36:09,520
Speaker 2: this is a great way to learn whether or not

809
00:36:09,719 --> 00:36:12,600
Speaker 2: you want to be a landlord without paying through the

810
00:36:12,800 --> 00:36:16,479
Speaker 2: nose in taxes for the privilege of learning that lesson.

811
00:36:16,600 --> 00:36:18,520
Speaker 2: And one last thought here, Matt.

812
00:36:18,560 --> 00:36:20,759
Speaker 1: It makes me think for some reason of our buddy Carl,

813
00:36:20,800 --> 00:36:22,800
Speaker 1: who does live in Flips, And maybe this is a

814
00:36:22,880 --> 00:36:26,320
Speaker 1: chance for Sarah to be able to get exactly what

815
00:36:26,560 --> 00:36:29,840
Speaker 1: she wants by buying one of the ugliest apartments on

816
00:36:29,920 --> 00:36:32,880
Speaker 1: the block and then forcing some appreciation saying, actually I

817
00:36:32,880 --> 00:36:34,640
Speaker 1: can get that too, too, kind of closer to the

818
00:36:34,680 --> 00:36:37,160
Speaker 1: neighborhood I want as long as I buy like literally

819
00:36:37,239 --> 00:36:40,840
Speaker 1: the ugliest one, and then over time I'm making improvements

820
00:36:40,920 --> 00:36:43,839
Speaker 1: to that place. So Sarah and her husband are handy. Yeah,

821
00:36:43,920 --> 00:36:45,960
Speaker 1: that's what you're saying. Yeah, I mean just a thought,

822
00:36:46,000 --> 00:36:49,839
Speaker 1: because in real estate, that's typically how you score a deal.

823
00:36:50,200 --> 00:36:53,160
Speaker 1: If you buy the one that's all joyn against and

824
00:36:53,200 --> 00:36:56,640
Speaker 1: all that stuff, you're paying somebody else for having a premium.

825
00:36:56,719 --> 00:36:58,560
Speaker 1: Having done that work, you're gonna pay the premium. So

826
00:36:58,640 --> 00:37:02,040
Speaker 1: at least consider maybe doing some DIY renovations. And Sarah,

827
00:37:02,080 --> 00:37:03,640
Speaker 1: the truth is, you're hitting all the metrics, like, you

828
00:37:03,719 --> 00:37:06,279
Speaker 1: have a great income, your credit scores are fantastic, you're

829
00:37:06,280 --> 00:37:10,239
Speaker 1: still funneling money into retirement accounts, You've already sacrificed a

830
00:37:10,280 --> 00:37:12,439
Speaker 1: lot to build up that down payment, and you're willing

831
00:37:12,480 --> 00:37:15,759
Speaker 1: to do more. You're also like flexible on exactly where

832
00:37:15,960 --> 00:37:18,680
Speaker 1: you end up, although that is something I think more

833
00:37:18,680 --> 00:37:21,600
Speaker 1: about too. Right, I would personally rather have a smaller

834
00:37:21,680 --> 00:37:24,480
Speaker 1: house than to live in a less walkable location or

835
00:37:24,520 --> 00:37:26,720
Speaker 1: someplace that was going to mean a much longer commute.

836
00:37:27,000 --> 00:37:29,359
Speaker 1: Not everybody feels that way, but just make sure you've

837
00:37:29,400 --> 00:37:31,640
Speaker 1: thought through that as well before you start making offers.

838
00:37:31,680 --> 00:37:33,759
Speaker 2: Although I we'll say we're talking New York City, or

839
00:37:33,800 --> 00:37:37,279
Speaker 2: we're talking to Manhattan and a small place versus a

840
00:37:37,800 --> 00:37:40,239
Speaker 2: decent sized place up there is a lot different, right

841
00:37:40,280 --> 00:37:43,279
Speaker 2: because like if you're talking about extra hundred square feet, yeah, yes,

842
00:37:43,320 --> 00:37:45,160
Speaker 2: because like a one to one that you're sharing with

843
00:37:45,239 --> 00:37:47,520
Speaker 2: your husband, like that's tight, Like that is not a

844
00:37:47,560 --> 00:37:49,400
Speaker 2: whole lot of space. So I get the desire to

845
00:37:49,440 --> 00:37:51,160
Speaker 2: have a two to two. It's not like we're telling

846
00:37:51,160 --> 00:37:54,520
Speaker 2: you to find like a two two McMansion, which sounds

847
00:37:54,520 --> 00:37:57,480
Speaker 2: like an oxymoron. I don't think that actually exists. But

848
00:37:58,040 --> 00:38:01,440
Speaker 2: if Sarah had said, hey, we're minimalists, we're not planning

849
00:38:01,520 --> 00:38:04,560
Speaker 2: to ever have kids, I think I might say, all right, well,

850
00:38:04,600 --> 00:38:06,680
Speaker 2: if you find the place of your dreams and it's

851
00:38:06,680 --> 00:38:08,600
Speaker 2: a one to one and it's small, but hey it's

852
00:38:08,760 --> 00:38:11,480
Speaker 2: in Manhattan, I might say to go for it. But

853
00:38:11,560 --> 00:38:13,279
Speaker 2: what I heard her say was that it's our dream

854
00:38:13,320 --> 00:38:15,200
Speaker 2: to own a two to two. It sounds like she's

855
00:38:15,280 --> 00:38:16,880
Speaker 2: maybe more of a homebody it wants to have the

856
00:38:16,920 --> 00:38:21,560
Speaker 2: additional space. And especially given the fact that she's looking

857
00:38:21,760 --> 00:38:24,279
Speaker 2: to she's like looking far off down the road, it

858
00:38:24,360 --> 00:38:26,640
Speaker 2: sounded like she was considering getting a nicer place into

859
00:38:26,680 --> 00:38:29,759
Speaker 2: here now versus something that's got that's up and coming,

860
00:38:30,280 --> 00:38:32,080
Speaker 2: but that is a little bit bigger. I actually might

861
00:38:32,160 --> 00:38:33,440
Speaker 2: do the opposite of what you said. I think I

862
00:38:33,440 --> 00:38:35,239
Speaker 2: would be willing Joel to go for the place that's

863
00:38:35,239 --> 00:38:37,960
Speaker 2: a little more up and coming. You got the space

864
00:38:38,200 --> 00:38:40,319
Speaker 2: because you, I don't know, you can't ever add more

865
00:38:40,320 --> 00:38:42,800
Speaker 2: space when you're looking at apartments like you are confined

866
00:38:42,800 --> 00:38:44,239
Speaker 2: to the square footage that you have, Like you can

867
00:38:44,280 --> 00:38:46,560
Speaker 2: make it nicer, but you can't gain more square footage.

868
00:38:47,000 --> 00:38:49,880
Speaker 2: And to count on, you know, this is the dangerous part.

869
00:38:49,960 --> 00:38:53,319
Speaker 2: To count on some appreciation in the neighborhood and hope

870
00:38:53,360 --> 00:38:55,840
Speaker 2: for some to hope for yeah, and just to And

871
00:38:55,920 --> 00:38:57,920
Speaker 2: that's something that you can also sort of force into

872
00:38:57,920 --> 00:39:00,640
Speaker 2: the neighborhood by just like community events out involved are

873
00:39:00,680 --> 00:39:04,000
Speaker 2: you in your neighbors lives, Like inviting them over for

874
00:39:04,120 --> 00:39:05,840
Speaker 2: drinks on the porch, like just different things like that

875
00:39:06,000 --> 00:39:09,120
Speaker 2: that add to the overall vibe of a building. I

876
00:39:09,160 --> 00:39:12,000
Speaker 2: think that's something that you can participate in. But I

877
00:39:12,080 --> 00:39:14,000
Speaker 2: think about the first house that Kate and I purchased,

878
00:39:14,320 --> 00:39:15,719
Speaker 2: and it was like right on the edge of what

879
00:39:15,840 --> 00:39:19,160
Speaker 2: we felt was safe slash something that it's like, Okay,

880
00:39:19,719 --> 00:39:22,520
Speaker 2: we see some potential here, but let's go for it.

881
00:39:22,640 --> 00:39:25,800
Speaker 2: And for us, we ended up lucking out. Like anything

882
00:39:26,040 --> 00:39:27,600
Speaker 2: worse than that. I don't think we would have felt

883
00:39:27,600 --> 00:39:30,440
Speaker 2: comfortable from day one, but we said, hey, from day one,

884
00:39:30,480 --> 00:39:33,520
Speaker 2: it's probably only going to get better, and it totally did.

885
00:39:33,640 --> 00:39:37,800
Speaker 2: And that's it's somewhat speculative, like we're hoping and counting it,

886
00:39:37,840 --> 00:39:40,319
Speaker 2: but that's again something that we participated in. We had

887
00:39:40,360 --> 00:39:42,560
Speaker 2: friends over, we met folksing you put.

888
00:39:42,480 --> 00:39:44,840
Speaker 1: Roots down, you can see which dominoes are dropping in

889
00:39:44,920 --> 00:39:46,480
Speaker 1: the real estate market and you can say, oh, this

890
00:39:46,640 --> 00:39:49,600
Speaker 1: is here's the hot neighborhood. Here's the neighborhood. That's two

891
00:39:49,600 --> 00:39:51,839
Speaker 1: neighborhoods over from the hot neighborhood, and you can kind

892
00:39:51,840 --> 00:39:54,560
Speaker 1: of say, well, it's got good bones over there. People

893
00:39:54,600 --> 00:39:56,799
Speaker 1: are starting to do some stuff. The neighborhood's got good bones.

894
00:39:56,840 --> 00:39:59,800
Speaker 1: Not the house, but like you see the possible future,

895
00:40:00,200 --> 00:40:01,680
Speaker 1: what life could look like, and in some of those

896
00:40:01,719 --> 00:40:04,040
Speaker 1: neighborhoods or in some of those buildings, and if you're

897
00:40:04,040 --> 00:40:06,040
Speaker 1: hanging onto it for the long haul, there's more upside

898
00:40:06,040 --> 00:40:08,480
Speaker 1: potential as well, because you are looking at that property

899
00:40:08,520 --> 00:40:13,160
Speaker 1: appreciating more over time versus maybe purchasing it closer to

900
00:40:14,160 --> 00:40:16,239
Speaker 1: the top of what the market would support were you

901
00:40:16,360 --> 00:40:19,120
Speaker 1: to either sell or rent that property. You get to

902
00:40:20,080 --> 00:40:22,160
Speaker 1: like experience the renaissance. You get to be a part

903
00:40:22,200 --> 00:40:23,759
Speaker 1: of it, which is kind of cool. Ride the wave

904
00:40:23,800 --> 00:40:24,279
Speaker 1: a little bit.

905
00:40:24,880 --> 00:40:26,719
Speaker 2: I don't know. That sounds like a lot of fun. Yeah, yeah,

906
00:40:26,760 --> 00:40:27,080
Speaker 2: for sure.

907
00:40:27,280 --> 00:40:30,040
Speaker 1: All right, but Sarah, we hope that's helpful. Best of

908
00:40:30,160 --> 00:40:31,960
Speaker 1: luck to you and your real state endeavors.

909
00:40:32,120 --> 00:40:32,319
Speaker 4: Matt.

910
00:40:32,360 --> 00:40:35,320
Speaker 1: We've got more questions to get to, and we'll actually

911
00:40:35,360 --> 00:40:38,000
Speaker 1: talk about something I mentioned on the show recently a

912
00:40:38,040 --> 00:40:41,000
Speaker 1: listener as a question about my costco Instacart hack. We'll

913
00:40:41,000 --> 00:40:42,400
Speaker 1: get to that and more right after this.

914
00:40:50,360 --> 00:40:52,440
Speaker 2: All right, buddy, we're back from the break. It is

915
00:40:52,600 --> 00:40:54,799
Speaker 2: now time for the Facebook question of the Week, which

916
00:40:54,840 --> 00:40:57,600
Speaker 2: is from Anissa. She writes, I thought you could check

917
00:40:57,600 --> 00:41:00,279
Speaker 2: your credit score for free by going directly to the

918
00:41:00,400 --> 00:41:03,960
Speaker 2: three sites. I am on Equifax's page and it lists prices.

919
00:41:04,520 --> 00:41:07,080
Speaker 2: I don't see anywhere on the site where it says free.

920
00:41:07,440 --> 00:41:09,719
Speaker 2: Please show me how to navigate this particular site to

921
00:41:09,800 --> 00:41:12,719
Speaker 2: obtain my free score? What am I missing? Oh? What's

922
00:41:12,760 --> 00:41:13,319
Speaker 2: the thing, Joel?

923
00:41:14,040 --> 00:41:15,360
Speaker 1: I hate to be the bearer of bad news on

924
00:41:15,400 --> 00:41:19,680
Speaker 1: this one, Matt. But in the credit bureaus, they're not

925
00:41:19,800 --> 00:41:21,440
Speaker 1: down with off from free scores. I don't know if

926
00:41:21,480 --> 00:41:24,839
Speaker 1: you remember this, probably like fifteen years ago, maybe there

927
00:41:24,960 --> 00:41:28,040
Speaker 1: was a free credit report or free credit score dot com,

928
00:41:28,520 --> 00:41:30,799
Speaker 1: and the credit bureaus were coming up with all these

929
00:41:31,360 --> 00:41:34,160
Speaker 1: websites to try to entice you to come directly to

930
00:41:34,280 --> 00:41:36,600
Speaker 1: them to get your credit score. We're trying to trick you,

931
00:41:36,800 --> 00:41:38,399
Speaker 1: but they were trying to trick you, and so yeah,

932
00:41:38,440 --> 00:41:39,919
Speaker 1: maybe it was free for like a week or something

933
00:41:39,960 --> 00:41:42,480
Speaker 1: like that, but then they wanted to you to fork

934
00:41:42,520 --> 00:41:44,440
Speaker 1: over fifteen twenty bucks a month or something like that

935
00:41:44,760 --> 00:41:47,240
Speaker 1: for all these insights into your credit score. This became

936
00:41:47,320 --> 00:41:50,400
Speaker 1: a profit center for them, and what they prefer to

937
00:41:50,480 --> 00:41:53,080
Speaker 1: do still to this day is to confuse you and

938
00:41:53,200 --> 00:41:56,080
Speaker 1: to profit off of you as much as possible. And

939
00:41:56,200 --> 00:41:59,040
Speaker 1: at the same time, when it comes to actually providing

940
00:41:59,080 --> 00:42:01,040
Speaker 1: you service if there's an issue, they're not going to

941
00:42:01,080 --> 00:42:03,320
Speaker 1: do that. So they're never going to, let's say, respond

942
00:42:03,360 --> 00:42:05,800
Speaker 1: to complaints about errors that you might have found and

943
00:42:06,040 --> 00:42:08,520
Speaker 1: that you've made them aware of. There's still a lot

944
00:42:08,560 --> 00:42:11,320
Speaker 1: of reports would suggest somewhere between one and four and

945
00:42:11,320 --> 00:42:13,959
Speaker 1: one in five Americans has an error on their credit

946
00:42:14,040 --> 00:42:16,640
Speaker 1: report that has not been removed, that has not been

947
00:42:17,320 --> 00:42:20,840
Speaker 1: made right. So Anissa, I just say this to begin with,

948
00:42:21,040 --> 00:42:23,440
Speaker 1: you're looking in the wrong place. The only reason to

949
00:42:23,520 --> 00:42:25,719
Speaker 1: go to the website of an individual bureau is to

950
00:42:25,840 --> 00:42:29,120
Speaker 1: freeze or thaw your credit report. Other than that, stay away,

951
00:42:29,160 --> 00:42:31,839
Speaker 1: do not go look for your credit score from those guys.

952
00:42:32,000 --> 00:42:35,000
Speaker 2: Totally. Yeah, And you said freeze, which is important because

953
00:42:35,120 --> 00:42:38,279
Speaker 2: they have, like all the bureaus have a credit lock feature. Right,

954
00:42:38,360 --> 00:42:41,960
Speaker 2: we're not talking about freezing. They offer locking abilities as well,

955
00:42:42,440 --> 00:42:44,520
Speaker 2: and they're going to try to charge you for something

956
00:42:44,560 --> 00:42:48,239
Speaker 2: that's already available for free. And plus their product is

957
00:42:48,320 --> 00:42:49,920
Speaker 2: kind of worse when it comes to the ability to

958
00:42:50,239 --> 00:42:53,000
Speaker 2: get in there and to monitor your credit, but their marketing,

959
00:42:53,080 --> 00:42:54,640
Speaker 2: it's going to make it sound superior. Well, and of

960
00:42:54,680 --> 00:42:56,600
Speaker 2: course they're going to prioritize some of the different plans

961
00:42:56,640 --> 00:42:59,680
Speaker 2: that they offer that have credit monitoring and just some

962
00:42:59,760 --> 00:43:03,480
Speaker 2: of the other foe services that they offer. But the

963
00:43:03,600 --> 00:43:06,040
Speaker 2: cool thing is getting your credit score for free is possible,

964
00:43:06,440 --> 00:43:08,120
Speaker 2: and the place to turn is typically just to your

965
00:43:08,160 --> 00:43:11,120
Speaker 2: credit card company. Almost everyone listening here they have a

966
00:43:11,200 --> 00:43:14,359
Speaker 2: credit card, and the different companies have their own sort

967
00:43:14,400 --> 00:43:17,279
Speaker 2: of credit score products. I'm thinking of Capital one. There

968
00:43:17,480 --> 00:43:20,560
Speaker 2: is called credit wise. Discover has a free credit score

969
00:43:20,600 --> 00:43:23,080
Speaker 2: that updates monthly as well AMX like literally all the

970
00:43:23,120 --> 00:43:25,200
Speaker 2: credit cards, and it's one of the best ways these

971
00:43:25,320 --> 00:43:29,160
Speaker 2: days to monitor your actual score for free. Typically you're

972
00:43:29,239 --> 00:43:32,120
Speaker 2: logging in there anyway. There's no need then to register

973
00:43:32,440 --> 00:43:36,799
Speaker 2: your account with Equifax or Experience or whoever or TransUnion

974
00:43:36,920 --> 00:43:39,520
Speaker 2: in order to try to get your free score over there.

975
00:43:39,840 --> 00:43:41,880
Speaker 2: And if you want to look at your detailed report,

976
00:43:41,960 --> 00:43:44,720
Speaker 2: well that can actually be had for free at annual

977
00:43:44,880 --> 00:43:48,560
Speaker 2: credit report dot com, which is actually still available for

978
00:43:48,800 --> 00:43:52,240
Speaker 2: free weekly. That's something they started offering during the pandemic

979
00:43:52,320 --> 00:43:53,719
Speaker 2: when it seems like the world was going to end.

980
00:43:53,760 --> 00:43:54,960
Speaker 2: So that is what they've maintained.

981
00:43:55,000 --> 00:43:57,680
Speaker 1: That is the report that's available, not the score of

982
00:43:57,800 --> 00:43:59,080
Speaker 1: the score. So if you want the score, you got

983
00:43:59,160 --> 00:44:01,120
Speaker 1: to go elsewhere. And you're right, mat the credit card

984
00:44:01,160 --> 00:44:03,200
Speaker 1: companies do a great job on that front. I still remember,

985
00:44:03,800 --> 00:44:06,640
Speaker 1: do you remember the bank Washington Mutual that was WAMU. Yeah,

986
00:44:06,680 --> 00:44:09,200
Speaker 1: that was one of my first bank accounts and they're

987
00:44:09,239 --> 00:44:11,200
Speaker 1: still around, right they got the Ostrich No, they're gone.

988
00:44:11,239 --> 00:44:13,400
Speaker 2: The guy with a mustache, No, that's uh, li am

989
00:44:13,440 --> 00:44:16,320
Speaker 2: I thinking of that's Liberty's yeah, Liberty Mutual, That's okay,

990
00:44:16,480 --> 00:44:17,080
Speaker 2: that's insurance.

991
00:44:17,400 --> 00:44:20,279
Speaker 1: So Washingt Mutual, No, they went. They went bust in

992
00:44:20,560 --> 00:44:23,960
Speaker 1: the Great Recession. But when I had part of the

993
00:44:24,000 --> 00:44:26,080
Speaker 1: reason I got my bank account with them was because

994
00:44:26,080 --> 00:44:29,000
Speaker 1: at the time, it was they were essentially the only

995
00:44:29,080 --> 00:44:32,600
Speaker 1: place where you could get your credit score for free

996
00:44:33,120 --> 00:44:36,480
Speaker 1: once a month, and I was nerdying into personal finance

997
00:44:36,520 --> 00:44:38,200
Speaker 1: as a twenty two year old or something like that,

998
00:44:38,280 --> 00:44:40,200
Speaker 1: and so I was like, cool, I'm going to go

999
00:44:40,320 --> 00:44:42,600
Speaker 1: with that account. But now the cat's kind of out

1000
00:44:42,600 --> 00:44:44,040
Speaker 1: of the bag. The credit score is not nearly as

1001
00:44:44,080 --> 00:44:44,520
Speaker 1: hidden as.

1002
00:44:44,480 --> 00:44:44,880
Speaker 2: It used to be.

1003
00:44:45,480 --> 00:44:47,840
Speaker 1: All the credit card companies offer something like that, or

1004
00:44:47,920 --> 00:44:50,399
Speaker 1: most of them. Also, I would say, Anissa, check out

1005
00:44:50,400 --> 00:44:53,799
Speaker 1: credit Karma. You'll get to see two scores for free.

1006
00:44:53,920 --> 00:44:56,840
Speaker 1: One is from TransUnion and one is from Equifax. You

1007
00:44:56,880 --> 00:44:58,880
Speaker 1: mentioned Equifax in your question, so if you want to

1008
00:44:58,880 --> 00:45:00,520
Speaker 1: see your e qu Fax score, it's a good place

1009
00:45:00,560 --> 00:45:02,640
Speaker 1: to get it. That gives you a pretty good idea

1010
00:45:02,680 --> 00:45:04,320
Speaker 1: of where your credit score stands. By being able to

1011
00:45:04,360 --> 00:45:07,040
Speaker 1: see both of those scores, credit Carmo will try and

1012
00:45:07,120 --> 00:45:09,880
Speaker 1: sell you a bunch of other financial products, including new

1013
00:45:09,920 --> 00:45:13,560
Speaker 1: credit cards or maybe even auto loans. Avoid those if

1014
00:45:13,600 --> 00:45:16,040
Speaker 1: you're not interested, but it's a solid site for digging

1015
00:45:16,080 --> 00:45:18,239
Speaker 1: into what's going on with your credit score. I like

1016
00:45:18,280 --> 00:45:20,879
Speaker 1: their credit health section because it can help you see

1017
00:45:20,920 --> 00:45:22,640
Speaker 1: where you need to improve. So it's not just the score,

1018
00:45:22,719 --> 00:45:25,319
Speaker 1: but then it's like, hey, here's why your score isn't

1019
00:45:25,320 --> 00:45:27,000
Speaker 1: as good as you want it to be, and here's

1020
00:45:27,000 --> 00:45:29,400
Speaker 1: where you can make improvements, Like if you're using too

1021
00:45:29,480 --> 00:45:32,160
Speaker 1: much of your available credit, or if you're making too

1022
00:45:32,239 --> 00:45:35,239
Speaker 1: many inquiries or something like that. They will make you

1023
00:45:35,360 --> 00:45:38,040
Speaker 1: aware of that and so then you can maybe correct

1024
00:45:38,040 --> 00:45:39,839
Speaker 1: your course so that you can.

1025
00:45:39,800 --> 00:45:41,680
Speaker 2: Improve the score. Well, even a lot of the credit

1026
00:45:41,760 --> 00:45:44,279
Speaker 2: card companies are actually offering that yeah now as well,

1027
00:45:44,400 --> 00:45:47,000
Speaker 2: And I think if you dig deep enough, the credit

1028
00:45:47,080 --> 00:45:49,640
Speaker 2: bureaus will they do the same thing. But we're just

1029
00:45:49,760 --> 00:45:51,839
Speaker 2: gonna not steer you towards them because of the fact

1030
00:45:51,840 --> 00:45:54,239
Speaker 2: that they oftentimes just do such a terrible job at

1031
00:45:54,239 --> 00:45:55,799
Speaker 2: the one thing that they're supposed to do a good

1032
00:45:55,880 --> 00:45:57,239
Speaker 2: job at, And is it because of that. I don't

1033
00:45:57,239 --> 00:45:59,600
Speaker 2: want to reward them with any other clicks at one

1034
00:45:59,719 --> 00:46:03,920
Speaker 2: job all. Indeed, let's get to one more. Joel from Courtney.

1035
00:46:04,560 --> 00:46:06,919
Speaker 2: She said, what's the instacart hack that Joel was talking

1036
00:46:06,960 --> 00:46:10,640
Speaker 2: about for Costco? Literally just less impulse purchases by using Instacart?

1037
00:46:11,080 --> 00:46:13,440
Speaker 2: Or is there something else I'm missing Joel? What's the

1038
00:46:13,800 --> 00:46:14,960
Speaker 2: going to share your Instacart hack?

1039
00:46:15,239 --> 00:46:17,239
Speaker 1: I will say this, that's not something I had thought

1040
00:46:17,239 --> 00:46:18,920
Speaker 1: about that much, the fewer impulse purchases.

1041
00:46:19,080 --> 00:46:21,279
Speaker 2: But it's totally true. Oh do we not talk about

1042
00:46:21,320 --> 00:46:21,600
Speaker 2: that well?

1043
00:46:21,600 --> 00:46:23,320
Speaker 1: Because if you go, it's true, it's true how we

1044
00:46:23,400 --> 00:46:25,160
Speaker 1: did well, maybe we did, but it's something I had

1045
00:46:25,200 --> 00:46:27,400
Speaker 1: not thought through a lot, Like when you just were

1046
00:46:27,400 --> 00:46:29,960
Speaker 1: looking for an easy way to get your afse bites.

1047
00:46:29,760 --> 00:46:30,279
Speaker 2: Or whatever it is.

1048
00:46:31,520 --> 00:46:33,400
Speaker 1: I just like straight up discounts and not having to

1049
00:46:33,800 --> 00:46:36,320
Speaker 1: go grocery shopping or and having someone else do it

1050
00:46:36,360 --> 00:46:37,560
Speaker 1: for me if it's not going to cost me an

1051
00:46:37,600 --> 00:46:40,320
Speaker 1: arm and a leg. And that was my initial aversion

1052
00:46:40,520 --> 00:46:44,520
Speaker 1: to Instacart, or to buying groceries online. Pay you pay

1053
00:46:44,560 --> 00:46:46,520
Speaker 1: the premium, you pay more than what you pay in

1054
00:46:46,560 --> 00:46:48,319
Speaker 1: the store, and then on top of that you got

1055
00:46:48,440 --> 00:46:51,120
Speaker 1: to pay the tip, the Instacart feel all all that stuff,

1056
00:46:51,480 --> 00:46:53,719
Speaker 1: and so I was like, no, I'm not into it.

1057
00:46:54,160 --> 00:46:56,680
Speaker 1: I would rather get my groceries as cheaply as possible.

1058
00:46:57,120 --> 00:47:01,640
Speaker 1: But Costco sells one hundred dollar INSTACR gift cards for

1059
00:47:01,840 --> 00:47:05,759
Speaker 1: eighty bucks, which is like a ridiculously sweet discount, so

1060
00:47:06,160 --> 00:47:08,840
Speaker 1: by my calculations, as that twenty percent it is. And

1061
00:47:09,000 --> 00:47:12,000
Speaker 1: you can get those gift cards online or in store.

1062
00:47:12,400 --> 00:47:14,560
Speaker 1: If you get them online, you can only buy two

1063
00:47:14,800 --> 00:47:16,560
Speaker 1: every two weeks. If you buy them in store, you

1064
00:47:16,600 --> 00:47:19,480
Speaker 1: can buy two every time you go in. Some people

1065
00:47:19,520 --> 00:47:22,200
Speaker 1: have said you can buy two, walk out, go back in,

1066
00:47:22,360 --> 00:47:24,880
Speaker 1: buy two more. I haven't tried that yet, although I'm

1067
00:47:24,960 --> 00:47:27,360
Speaker 1: sure you can, especially if you go see a different

1068
00:47:27,560 --> 00:47:29,439
Speaker 1: person at checkout. But I don't even think they would

1069
00:47:29,440 --> 00:47:29,920
Speaker 1: give you put some.

1070
00:47:29,960 --> 00:47:32,880
Speaker 2: Something lesses on it exactly, or a mustache mustash.

1071
00:47:33,680 --> 00:47:36,400
Speaker 1: But so what's so great about it, too, is that

1072
00:47:36,520 --> 00:47:39,480
Speaker 1: you can use Costco's same day service costco dot com

1073
00:47:39,600 --> 00:47:42,919
Speaker 1: click the same Day and you can buy your groceries there.

1074
00:47:43,320 --> 00:47:45,920
Speaker 1: The markup, Matt, I haven't done the math exactly, but

1075
00:47:45,960 --> 00:47:48,440
Speaker 1: I'm pretty sure the markup is somewhere between nine and

1076
00:47:48,480 --> 00:47:51,080
Speaker 1: eleven percent on most of the groceries. So you're get

1077
00:47:51,120 --> 00:47:53,360
Speaker 1: in that twenty percent discount you paid the nine to

1078
00:47:53,440 --> 00:47:55,600
Speaker 1: eleven percent markup then you got to pay the tip

1079
00:47:55,680 --> 00:47:58,040
Speaker 1: to the chopper on top of that, but you still

1080
00:47:58,080 --> 00:47:59,839
Speaker 1: come out I would say, even if not a little

1081
00:47:59,840 --> 00:48:03,600
Speaker 1: bit ahead and you avoided the impulse buys.

1082
00:48:03,600 --> 00:48:05,560
Speaker 2: Show me your math, and it's true.

1083
00:48:05,920 --> 00:48:08,239
Speaker 1: I'm telling you, man, go look, go look I have.

1084
00:48:08,560 --> 00:48:10,040
Speaker 1: And then I looked on Reddit to see what other

1085
00:48:10,040 --> 00:48:11,759
Speaker 1: people are saying, and they were agreeing with me that

1086
00:48:11,840 --> 00:48:14,279
Speaker 1: it is somewhere in that range. But yeah, so this

1087
00:48:14,480 --> 00:48:17,759
Speaker 1: is what it's saving me multiple hours a week of

1088
00:48:17,840 --> 00:48:20,440
Speaker 1: grocery shopping, which is nice. And even if you just

1089
00:48:20,520 --> 00:48:22,319
Speaker 1: kind of need to make a quick order or something

1090
00:48:22,360 --> 00:48:24,520
Speaker 1: like that, it's not as frustrating because you know the

1091
00:48:24,600 --> 00:48:26,480
Speaker 1: pricing and you know you got a discount on that

1092
00:48:26,560 --> 00:48:28,279
Speaker 1: gift card. So I think for a lot of people

1093
00:48:28,320 --> 00:48:29,960
Speaker 1: out there who are like I wanted to try Instacart,

1094
00:48:30,000 --> 00:48:32,440
Speaker 1: but I too am too frugal to go in that direction.

1095
00:48:32,840 --> 00:48:35,799
Speaker 1: If you like Costco, the instacart hack at Costco makes

1096
00:48:35,800 --> 00:48:36,880
Speaker 1: a lot of sense, good way.

1097
00:48:36,719 --> 00:48:36,960
Speaker 5: To do it.

1098
00:48:37,120 --> 00:48:39,080
Speaker 2: Or you can just avoid all the frustration, including the

1099
00:48:39,120 --> 00:48:41,439
Speaker 2: Costco parking lot, and just go straight to Aldie, because

1100
00:48:41,520 --> 00:48:44,120
Speaker 2: you are totally going to save more by going to Aldi.

1101
00:48:44,280 --> 00:48:46,480
Speaker 2: I will say, you're right, the cost. The quality is

1102
00:48:46,560 --> 00:48:48,719
Speaker 2: higher at Costco, but you also pay for it. That's true,

1103
00:48:48,760 --> 00:48:51,000
Speaker 2: you know, that's so all that to be said. We're

1104
00:48:51,040 --> 00:48:52,640
Speaker 2: trying to I'm telling you, man, we're trying to shop

1105
00:48:52,680 --> 00:48:55,720
Speaker 2: less at Costco because we have seen our grocery budget

1106
00:48:55,760 --> 00:48:58,759
Speaker 2: creep up when we buy more stuff from Costco as well,

1107
00:48:59,239 --> 00:49:01,480
Speaker 2: You're not when you buy in bulk, we are tempted

1108
00:49:01,560 --> 00:49:03,600
Speaker 2: to consume more. You know, when you buy three hundred

1109
00:49:03,640 --> 00:49:05,680
Speaker 2: rolls of tot paper, I'm just like, oh, it doesn't

1110
00:49:05,719 --> 00:49:07,480
Speaker 2: matter how much paper I use. We got so much

1111
00:49:07,520 --> 00:49:09,239
Speaker 2: of it. It's burning a hole in a pocket. Are

1112
00:49:09,280 --> 00:49:12,640
Speaker 2: you are you wiping extra if you know you've got

1113
00:49:12,719 --> 00:49:15,839
Speaker 2: like sixty rolls in the in the closet versus six?

1114
00:49:16,040 --> 00:49:16,359
Speaker 5: Uh huh?

1115
00:49:16,680 --> 00:49:18,520
Speaker 2: Like you treat it a little bit differently, you know,

1116
00:49:18,600 --> 00:49:21,640
Speaker 2: like there's a psychological component to it. Though, I will say,

1117
00:49:21,680 --> 00:49:23,799
Speaker 2: have you seen I gotta say so, these are all

1118
00:49:23,800 --> 00:49:26,440
Speaker 2: the reasons I love Aldi. Have you seen the Aldi commercial?

1119
00:49:27,320 --> 00:49:29,480
Speaker 2: They've had some good ones lately. Oh oh gosh, d

1120
00:49:29,520 --> 00:49:31,239
Speaker 2: I can say they're terrible. Oh really, I hate them.

1121
00:49:31,640 --> 00:49:34,400
Speaker 2: Where the guys like the fig prices, you think that

1122
00:49:34,480 --> 00:49:37,080
Speaker 2: pineapples on sale and the lady pulls the sticker down.

1123
00:49:37,120 --> 00:49:39,400
Speaker 2: It's the same price underneath, and it's all like cpo

1124
00:49:39,480 --> 00:49:41,000
Speaker 2: to I don't know if sen like, oh you think

1125
00:49:41,040 --> 00:49:44,160
Speaker 2: that discount card is actually getting you something? Joke's on you.

1126
00:49:44,400 --> 00:49:46,160
Speaker 2: And then it goes to color and they're making a

1127
00:49:46,239 --> 00:49:48,880
Speaker 2: good point. Yeah, but it's such a lame. It's a

1128
00:49:48,960 --> 00:49:52,200
Speaker 2: terrible commercial, and so I'm gonna I will knock aldi

1129
00:49:52,360 --> 00:49:54,359
Speaker 2: for that. That's come on. By the way, do better

1130
00:49:54,480 --> 00:49:54,880
Speaker 2: pretty sure?

1131
00:49:54,920 --> 00:49:57,400
Speaker 1: I just saw Costco stock price go down five percent

1132
00:49:57,440 --> 00:49:59,520
Speaker 1: with you saying you're shopping at Costco less sore you go,

1133
00:49:59,800 --> 00:50:01,000
Speaker 1: you move markets, my friend.

1134
00:50:02,440 --> 00:50:04,239
Speaker 2: All right, let's get back to the beer that you

1135
00:50:04,280 --> 00:50:07,440
Speaker 2: and I enjoyed this episode, which is a Bigfoot barley

1136
00:50:07,480 --> 00:50:09,799
Speaker 2: wine style ale by Sierra Nevada. What do you think.

1137
00:50:10,000 --> 00:50:12,400
Speaker 1: I'm glad they said barleywine style because it's not a

1138
00:50:12,520 --> 00:50:14,680
Speaker 1: barley wine like because it's too happy.

1139
00:50:14,920 --> 00:50:19,160
Speaker 2: Yes, it's incredibly bitterly hoppy, and so this happens that

1140
00:50:19,280 --> 00:50:22,920
Speaker 2: classic it's like a West Coast beast I Pa reminds

1141
00:50:22,920 --> 00:50:25,360
Speaker 2: me of. It's just multier. It's it's like a multier

1142
00:50:25,480 --> 00:50:29,239
Speaker 2: narwhal like is that an ipa? No, that's what is

1143
00:50:29,320 --> 00:50:31,360
Speaker 2: that that's their stout. No Torpedo, I think is what

1144
00:50:31,400 --> 00:50:33,400
Speaker 2: you're thinking. I'm thinking of Torpedo. It's got the Torpedo

1145
00:50:34,080 --> 00:50:37,320
Speaker 2: hops going on. I mean, I don't know my hops

1146
00:50:37,400 --> 00:50:39,800
Speaker 2: like somebody who's really really into craft beer. But the

1147
00:50:39,920 --> 00:50:43,560
Speaker 2: mouthfeel that I got reminded me so much of that

1148
00:50:43,880 --> 00:50:45,520
Speaker 2: Sierra Nevada bitterness, or it kind.

1149
00:50:45,360 --> 00:50:47,800
Speaker 1: Of tastes in some ways like their their Christmas. I

1150
00:50:47,880 --> 00:50:49,359
Speaker 1: p a a little bit too that they come out

1151
00:50:49,360 --> 00:50:50,480
Speaker 1: with celebration every.

1152
00:50:50,360 --> 00:50:53,680
Speaker 2: Single ye yes, yeah, all these beers classic Sierra Nevada.

1153
00:50:53,760 --> 00:50:55,440
Speaker 1: So this is very much like if you just poor

1154
00:50:55,560 --> 00:50:58,600
Speaker 1: blind taste tested this one on me, I would not

1155
00:50:58,719 --> 00:51:00,880
Speaker 1: call it a barley wine. I call it a hopped

1156
00:51:00,920 --> 00:51:02,560
Speaker 1: up West Coast ipa And I would be like, that's

1157
00:51:02,600 --> 00:51:02,920
Speaker 1: totally a.

1158
00:51:02,960 --> 00:51:05,000
Speaker 2: Serian about it. Yeah, and if how to make like

1159
00:51:05,080 --> 00:51:07,840
Speaker 2: a dark West Coast ipa or yeah, yeah, it's it

1160
00:51:07,960 --> 00:51:09,440
Speaker 2: is good, Yeah, I will say I like, I mean,

1161
00:51:09,520 --> 00:51:12,359
Speaker 2: it's super tasty, it's it's unique, and this beer has

1162
00:51:12,400 --> 00:51:15,040
Speaker 2: been around for a super duper long time, and so

1163
00:51:15,280 --> 00:51:16,760
Speaker 2: it's fun to have a bigfoot.

1164
00:51:17,200 --> 00:51:19,799
Speaker 1: But it's it's interesting though, if you were expecting barley wine,

1165
00:51:20,000 --> 00:51:21,480
Speaker 1: that's just not what I get from this, you know,

1166
00:51:21,680 --> 00:51:23,919
Speaker 1: not nearly as multi but maybe I'm just an idiot,

1167
00:51:23,960 --> 00:51:26,080
Speaker 1: don't know what I'm talking about, but just as enjoyable.

1168
00:51:26,200 --> 00:51:28,279
Speaker 2: Yeah, I'm not gonna hate on it. I'm not totally

1169
00:51:28,320 --> 00:51:29,919
Speaker 2: sure when the last time actually had a big foot,

1170
00:51:29,960 --> 00:51:31,239
Speaker 2: And I guess it's one that they do every year

1171
00:51:31,239 --> 00:51:34,320
Speaker 2: that's a seasonal because it says twenty twenty five, Yeah, bigfoot.

1172
00:51:34,400 --> 00:51:36,359
Speaker 1: Well, some people lay these down and sell her them

1173
00:51:36,480 --> 00:51:38,480
Speaker 1: age they age and come back to them years down

1174
00:51:38,520 --> 00:51:38,799
Speaker 1: the road.

1175
00:51:38,960 --> 00:51:42,160
Speaker 2: We're luckily not that nerdy, but buddy, that's going to

1176
00:51:42,200 --> 00:51:43,919
Speaker 2: be it for this episode. Listeners can find our show

1177
00:51:43,920 --> 00:51:45,960
Speaker 2: notes up on the website at how to money dot com.

1178
00:51:46,280 --> 00:51:49,000
Speaker 2: But we didn't even actually mention the credit card tool

1179
00:51:49,080 --> 00:51:51,879
Speaker 2: when we're addressing Austin's question about travel cards. So head

1180
00:51:51,920 --> 00:51:53,919
Speaker 2: over to how to money dot com forward slash credit

1181
00:51:53,960 --> 00:51:56,760
Speaker 2: card tool and you can sort by the different rewards,

1182
00:51:56,800 --> 00:51:58,719
Speaker 2: whether or not you want to do cash back what

1183
00:51:58,840 --> 00:52:01,719
Speaker 2: a missed opportunity, Oh my gosh. You can sort them

1184
00:52:01,760 --> 00:52:04,560
Speaker 2: by cash back or you're telling them now or travel points.

1185
00:52:04,640 --> 00:52:06,560
Speaker 2: At least we finally got to it for the foot.

1186
00:52:06,640 --> 00:52:08,120
Speaker 2: For the few folks who had their hands tied up.

1187
00:52:08,120 --> 00:52:10,560
Speaker 2: They're doing the dishes or cutting grass or something like that.

1188
00:52:11,000 --> 00:52:12,880
Speaker 2: But anyway, that's gonna be it buddy for this episode

1189
00:52:12,920 --> 00:52:15,480
Speaker 2: until next time. Best Friend's Out, Best Friends Out,