1
00:00:00,080 --> 00:00:03,280
Speaker 1: Welcome to Hat of Money. I'm Joel and I am Matt,

2
00:00:03,279 --> 00:00:05,440
Speaker 1: and today we're answering your listener questions.

3
00:00:24,520 --> 00:00:27,440
Speaker 2: That's the right happy Monday, everybody. It's a great Monday,

4
00:00:27,640 --> 00:00:29,720
Speaker 2: Joel to be hosting a personal finance.

5
00:00:29,400 --> 00:00:32,120
Speaker 1: Podcast every Monday. It's a great Monday, Matt, because we're

6
00:00:32,159 --> 00:00:32,640
Speaker 1: still alive.

7
00:00:32,840 --> 00:00:35,640
Speaker 2: Hey, it's true and not just any Monday. Just like, honestly,

8
00:00:35,720 --> 00:00:37,360
Speaker 2: I love Let's just take a moment and thank all

9
00:00:37,400 --> 00:00:39,400
Speaker 2: of our listeners out there the ability for us to

10
00:00:39,400 --> 00:00:41,319
Speaker 2: be able to create this podcast. We've got the best

11
00:00:41,400 --> 00:00:43,839
Speaker 2: job in the world. Yes, face it, we sure do you. Uh,

12
00:00:44,440 --> 00:00:46,040
Speaker 2: thank you for listening. Like anywhere we go from here,

13
00:00:46,040 --> 00:00:48,680
Speaker 2: it's just going to be it's gonna be not as good.

14
00:00:49,840 --> 00:00:52,479
Speaker 2: Let's just make the podcast gets better. But I don't know,

15
00:00:52,600 --> 00:00:56,279
Speaker 2: you're right, Like if it meant other work, not podcasting.

16
00:00:56,320 --> 00:00:58,640
Speaker 2: Anytime I think about doing something else, I'm just like, yes,

17
00:00:59,120 --> 00:01:01,400
Speaker 2: not as good as podcasting with Joel. It's just a

18
00:01:01,440 --> 00:01:03,440
Speaker 2: ton of fun. So ability for us to enjoy a

19
00:01:03,480 --> 00:01:06,160
Speaker 2: craft beer right here talk about personal finance. I had

20
00:01:06,160 --> 00:01:07,080
Speaker 2: all the other random stuff that.

21
00:01:07,080 --> 00:01:09,920
Speaker 1: I can enjoying being a greeter at Walmart.

22
00:01:09,959 --> 00:01:13,440
Speaker 2: I just I don't know, but then taking a financial

23
00:01:13,480 --> 00:01:15,679
Speaker 2: hit most likely. Yeah, I mean I don't know how.

24
00:01:15,680 --> 00:01:18,520
Speaker 1: Much you get paid here, but well it's just hard

25
00:01:18,560 --> 00:01:21,400
Speaker 1: to yeah, pay the bills, I think on a Walmart

26
00:01:21,400 --> 00:01:23,759
Speaker 1: rereader side. Yeah, but I love I love like meeting folks,

27
00:01:23,800 --> 00:01:25,160
Speaker 1: so that that part of the job I would enjoy.

28
00:01:25,200 --> 00:01:28,120
Speaker 2: You think I could see you doing that? No, we do.

29
00:01:28,200 --> 00:01:30,520
Speaker 2: In fact, I have listener questions. We've got a listener

30
00:01:30,520 --> 00:01:33,959
Speaker 2: who's thinking about tapping a retirement account for a down

31
00:01:33,959 --> 00:01:36,320
Speaker 2: payment on a home. We're gonna share whether or not

32
00:01:36,400 --> 00:01:39,119
Speaker 2: we think that's kosher. Another listener is looking to get

33
00:01:39,160 --> 00:01:43,039
Speaker 2: some study abroad paid for not by her, maybe by

34
00:01:43,040 --> 00:01:45,720
Speaker 2: somebody else. And then we're going to talk about maintaining

35
00:01:45,760 --> 00:01:49,320
Speaker 2: a high credit score without necessarily having to juggle a

36
00:01:49,320 --> 00:01:52,000
Speaker 2: bunch of credit cards. We'll get to that and more

37
00:01:52,120 --> 00:01:55,480
Speaker 2: during today's episode. Sure will, But uh, let's talk about

38
00:01:55,560 --> 00:02:00,000
Speaker 2: Charity Navigator, the Charity Navigator causeway specifically. We'll see that.

39
00:02:00,120 --> 00:02:02,560
Speaker 2: So I think I love Charity Navigator. It's a great

40
00:02:02,560 --> 00:02:04,120
Speaker 2: way to say I'm in a really good mood today.

41
00:02:04,240 --> 00:02:07,480
Speaker 2: I think Charity Navigator it makes me They're like consumer reports,

42
00:02:08,120 --> 00:02:11,880
Speaker 2: but with less consuming so kind of like the forgiving. Yes,

43
00:02:12,120 --> 00:02:16,080
Speaker 2: so maybe it should be called Giving Charity Reports. And

44
00:02:16,120 --> 00:02:18,359
Speaker 2: then all of a sudden you realize, oh, Charity Navigator

45
00:02:18,400 --> 00:02:19,960
Speaker 2: is just a much better name. I'll tell them you're

46
00:02:19,960 --> 00:02:22,280
Speaker 2: going to be you're joining their marketing team. No, they

47
00:02:22,280 --> 00:02:23,680
Speaker 2: got it on on point.

48
00:02:23,880 --> 00:02:26,800
Speaker 1: So I wanted to highlight this Matt because we're getting

49
00:02:26,840 --> 00:02:29,520
Speaker 1: to the end of the year. People have giving on

50
00:02:29,600 --> 00:02:32,200
Speaker 1: their mind and tax breaks forgiving and stuff like that,

51
00:02:32,720 --> 00:02:34,560
Speaker 1: and as well they should. We're going to talk more

52
00:02:34,560 --> 00:02:37,680
Speaker 1: about that actually in the coming weeks. But Charity Navigator

53
00:02:37,680 --> 00:02:42,000
Speaker 1: released this new thing called Causeway and what their intention

54
00:02:42,160 --> 00:02:45,280
Speaker 1: behind it is essentially to create a sort of ETF

55
00:02:45,800 --> 00:02:46,880
Speaker 1: for people who want.

56
00:02:46,720 --> 00:02:47,960
Speaker 2: To give the specific causes.

57
00:02:48,080 --> 00:02:49,760
Speaker 1: And I just think this is a really cool product

58
00:02:49,840 --> 00:02:52,320
Speaker 1: because you can choose the cause that matters most to you,

59
00:02:52,320 --> 00:02:55,760
Speaker 1: whether it's like clean water, animal rescue. They're like a

60
00:02:55,800 --> 00:02:58,959
Speaker 1: Shmorgas board of different causes that you can say, that's

61
00:02:58,960 --> 00:03:00,960
Speaker 1: the one that matters most to me, and you can

62
00:03:01,000 --> 00:03:04,079
Speaker 1: give your money to that cause via this new Causeway future,

63
00:03:04,360 --> 00:03:06,919
Speaker 1: and you're giving to a bunch of different highly rated

64
00:03:07,000 --> 00:03:10,160
Speaker 1: organizations that support that one cause. So I just thought

65
00:03:10,200 --> 00:03:12,240
Speaker 1: that was kind of a fun new giving feature that

66
00:03:12,280 --> 00:03:13,280
Speaker 1: they just put out.

67
00:03:13,400 --> 00:03:16,320
Speaker 2: That's right. Yeah, And we actually talked about the right

68
00:03:16,320 --> 00:03:19,320
Speaker 2: amount to give to charity back in episode five ninety six.

69
00:03:19,360 --> 00:03:21,640
Speaker 2: We talked about that because obviously, not only is it

70
00:03:21,639 --> 00:03:24,760
Speaker 2: good for the organizations that you're giving to, but there's

71
00:03:24,760 --> 00:03:26,880
Speaker 2: something that it does to you man like as a giver,

72
00:03:27,040 --> 00:03:29,880
Speaker 2: as the one who is being charitable for sure, regardless

73
00:03:29,919 --> 00:03:32,000
Speaker 2: if you are spiritual, whether or not you believe in

74
00:03:32,040 --> 00:03:35,240
Speaker 2: God or whether you just believe in karma in the universe, Like,

75
00:03:35,280 --> 00:03:38,280
Speaker 2: there is something good about being generous and like being

76
00:03:38,360 --> 00:03:41,920
Speaker 2: willing to say, okay, like there is some money, some

77
00:03:42,040 --> 00:03:44,360
Speaker 2: income that I'm generating that I'm not necessarily going to

78
00:03:44,480 --> 00:03:48,000
Speaker 2: like try my darness to hang on to and claw

79
00:03:48,040 --> 00:03:51,320
Speaker 2: back every single week Ducat Yeah exactly. So Yeah, I

80
00:03:51,320 --> 00:03:53,160
Speaker 2: would recommend for folks to go listen to that one

81
00:03:53,200 --> 00:03:53,720
Speaker 2: if they haven't.

82
00:03:53,800 --> 00:03:55,040
Speaker 1: And I want to say, I think this is a

83
00:03:55,040 --> 00:03:57,800
Speaker 1: cool feature, but I also am not going to participate

84
00:03:57,840 --> 00:04:01,119
Speaker 1: in charity Navigator's causeway, not because I think it sucks,

85
00:04:01,160 --> 00:04:03,080
Speaker 1: because I actually do think it's neat, but because I

86
00:04:03,240 --> 00:04:06,120
Speaker 1: am more of the I like the donor advice fund model.

87
00:04:06,520 --> 00:04:08,320
Speaker 1: That's something we've talked about we've written about too on

88
00:04:08,320 --> 00:04:10,680
Speaker 1: the website. We'll maybe link to a couple of articles

89
00:04:10,680 --> 00:04:12,800
Speaker 1: in the show notes that we have. But yeah, my

90
00:04:12,880 --> 00:04:17,039
Speaker 1: money goes into my daffy account and that's how I'm.

91
00:04:16,839 --> 00:04:20,200
Speaker 2: Giving because it just streamlines everything for me. But well,

92
00:04:19,960 --> 00:04:22,960
Speaker 2: you only get a form from one organization as opposed

93
00:04:23,040 --> 00:04:25,080
Speaker 2: Like that's honestly the best part. The fact that, like,

94
00:04:25,120 --> 00:04:27,599
Speaker 2: it's great to be able to, okay, quick pitch on

95
00:04:27,640 --> 00:04:29,760
Speaker 2: donor advice funds. What's great about it is the ability to,

96
00:04:30,240 --> 00:04:32,760
Speaker 2: let's say, clump you're giving and maybe one year you're

97
00:04:32,760 --> 00:04:34,640
Speaker 2: not going to get the standard deduction. That's going to

98
00:04:34,680 --> 00:04:37,000
Speaker 2: be the year that you're going to itemize your giving,

99
00:04:37,040 --> 00:04:39,120
Speaker 2: and so the ability to receive some of these additional

100
00:04:39,200 --> 00:04:41,560
Speaker 2: tax benefits I think is great. But you may not

101
00:04:41,600 --> 00:04:43,560
Speaker 2: necessarily know all the organizations that you want to give

102
00:04:43,640 --> 00:04:45,719
Speaker 2: to in that moment in time. So the ability to

103
00:04:45,800 --> 00:04:47,479
Speaker 2: kind of have it sit there in this sort of

104
00:04:47,880 --> 00:04:49,760
Speaker 2: the sort of waiting room, you know, so it's it's

105
00:04:49,760 --> 00:04:51,640
Speaker 2: like you're giving dollars, have gone to the dentist office. Well,

106
00:04:51,680 --> 00:04:53,560
Speaker 2: they're waiting on their turn to be deployed. The other

107
00:04:53,600 --> 00:04:55,480
Speaker 2: cool thing about the donor advice fund is it's more

108
00:04:55,520 --> 00:04:57,520
Speaker 2: than a waiting room. You can grow your money as people,

109
00:04:57,520 --> 00:04:59,480
Speaker 2: your money nerds. It's like fun to grow your money

110
00:04:59,480 --> 00:05:01,440
Speaker 2: for future g So you put in a certain amount

111
00:05:01,640 --> 00:05:04,159
Speaker 2: and then you give like down the road and hopefully

112
00:05:04,160 --> 00:05:06,800
Speaker 2: that money is we got more money now to give away.

113
00:05:07,040 --> 00:05:09,280
Speaker 2: So I love that feature too. But I'm all about

114
00:05:09,360 --> 00:05:11,479
Speaker 2: kind of innovation in the giving space. We haven't seen

115
00:05:11,560 --> 00:05:13,000
Speaker 2: enough of it, and it's cool to see more. Matt

116
00:05:13,040 --> 00:05:14,760
Speaker 2: Let's mention the beer we're having on this episode. This

117
00:05:14,760 --> 00:05:18,600
Speaker 2: one is called Juice Quest. It is by Scofflaw Brewing.

118
00:05:18,880 --> 00:05:21,240
Speaker 2: They're actually out of Atlanta, not too far away from

119
00:05:21,320 --> 00:05:23,440
Speaker 2: where we are. It's a local beer right here.

120
00:05:23,480 --> 00:05:25,000
Speaker 1: Yeah, we give our thoughts on this one at the

121
00:05:25,040 --> 00:05:27,200
Speaker 1: end of the episode. And if you have a money

122
00:05:27,240 --> 00:05:30,000
Speaker 1: question we'd love to hear from you. You just essentially

123
00:05:30,000 --> 00:05:32,279
Speaker 1: record a voice memo on the app on your phone,

124
00:05:32,360 --> 00:05:34,480
Speaker 1: send it over our way. Hopefully we can take it

125
00:05:34,560 --> 00:05:36,480
Speaker 1: next week on the show. If you want kind of

126
00:05:36,520 --> 00:05:38,240
Speaker 1: the nitty gritty on how to go about doing that,

127
00:05:38,240 --> 00:05:40,480
Speaker 1: you can go to how tomoney dot com slash ask

128
00:05:40,880 --> 00:05:44,600
Speaker 1: matt Let's get you a question about tapping retirement accounts

129
00:05:45,040 --> 00:05:48,120
Speaker 1: for a purchase this listener wants to make Hey.

130
00:05:47,880 --> 00:05:50,640
Speaker 3: Matt and Joel. My name is Andrea and I'm from Lancey, Michigan.

131
00:05:50,960 --> 00:05:52,680
Speaker 3: My husband and I are looking to buy our first

132
00:05:52,680 --> 00:05:55,520
Speaker 3: home and have some questions. As you know, the IRS

133
00:05:55,560 --> 00:05:58,280
Speaker 3: allows individuals to withdraw up to ten thousand dollars from

134
00:05:58,279 --> 00:06:01,640
Speaker 3: their iras to buy your first home. Obviously, this isn't

135
00:06:01,640 --> 00:06:03,720
Speaker 3: the most ideal situation and we want to avoid it

136
00:06:03,760 --> 00:06:06,600
Speaker 3: if we can. But if one or both of us

137
00:06:06,640 --> 00:06:08,440
Speaker 3: took this step and would allow us to have more

138
00:06:08,480 --> 00:06:10,800
Speaker 3: in our savings to use for other home costs and fees,

139
00:06:11,320 --> 00:06:14,159
Speaker 3: we're interested to hear what you'd recommend. We really enjoy

140
00:06:14,200 --> 00:06:16,880
Speaker 3: listening to your podcast. Your advice has helped us a lot.

141
00:06:16,920 --> 00:06:18,320
Speaker 3: Thanks so much, Joe.

142
00:06:18,360 --> 00:06:20,800
Speaker 2: Can you picture Area and her husband both listening together,

143
00:06:21,040 --> 00:06:23,159
Speaker 2: like while holding hands, sort of like couple's therapy.

144
00:06:23,279 --> 00:06:26,520
Speaker 1: But it makes me think like the fireside chats that

145
00:06:26,640 --> 00:06:28,920
Speaker 1: FBR used to give. But maybe she's got an old

146
00:06:28,920 --> 00:06:32,320
Speaker 1: school speaker that looks like a radio from the nineteen

147
00:06:32,360 --> 00:06:33,040
Speaker 1: twenties and.

148
00:06:33,040 --> 00:06:35,799
Speaker 2: The spirit of Saint Louis style radio. Yeah, the kids

149
00:06:35,800 --> 00:06:38,080
Speaker 2: are like hands on the on the chin, laying on

150
00:06:38,080 --> 00:06:40,240
Speaker 2: the floor with the fire going in the background, So

151
00:06:40,279 --> 00:06:43,760
Speaker 2: quiint adrea, thank you for your question and congrats on

152
00:06:44,240 --> 00:06:46,200
Speaker 2: I will say the steps that you have taken to

153
00:06:46,279 --> 00:06:48,000
Speaker 2: get you in the position to where you might be

154
00:06:48,040 --> 00:06:51,240
Speaker 2: purchasing a home very soon, because I appreciate your rediinus

155
00:06:51,279 --> 00:06:54,880
Speaker 2: so easy feet, it's not. Yeah, I appreciate your hesitation

156
00:06:55,080 --> 00:06:57,720
Speaker 2: to take money out of your retirement accounts to make

157
00:06:57,720 --> 00:07:01,159
Speaker 2: this happen, because like, just because you are allowed to

158
00:07:01,320 --> 00:07:04,400
Speaker 2: tap some of those retirement accounts for a down payment,

159
00:07:04,800 --> 00:07:08,480
Speaker 2: that doesn't mean that it is advisable, because I would say,

160
00:07:08,560 --> 00:07:11,160
Speaker 2: in an ideal world, you would just leave those dollars

161
00:07:11,200 --> 00:07:14,000
Speaker 2: in your iras to grow and to compound for your future.

162
00:07:14,040 --> 00:07:17,200
Speaker 2: Those are retirement dollars, and instead you take just a

163
00:07:17,280 --> 00:07:18,480
Speaker 2: little bit longer to save up.

164
00:07:18,600 --> 00:07:21,720
Speaker 1: Yeah, yeah, you said ideal world though, Matt, and You're right,

165
00:07:21,760 --> 00:07:25,640
Speaker 1: like there trade offs are the ultimate reality of every

166
00:07:25,640 --> 00:07:28,840
Speaker 1: money decision that we make, and that is like, hey,

167
00:07:29,080 --> 00:07:31,880
Speaker 1: in perfect times, that's what we would suggest, but hey,

168
00:07:31,880 --> 00:07:34,520
Speaker 1: we don't live in perfect times, and so should you

169
00:07:34,560 --> 00:07:37,160
Speaker 1: take money out of your ira Andrea in order to

170
00:07:37,200 --> 00:07:41,880
Speaker 1: fuel your downpayment abilities? Even though we're talking about imperfect decisions,

171
00:07:41,880 --> 00:07:45,520
Speaker 1: we would say still probably not those dollars should be

172
00:07:45,600 --> 00:07:49,880
Speaker 1: considered semi sacred, like almost sacred when you stick them

173
00:07:49,880 --> 00:07:51,840
Speaker 1: in there. The goal is to leave them in there

174
00:07:51,840 --> 00:07:54,760
Speaker 1: and to not tap them, even though there are special exceptions.

175
00:07:54,800 --> 00:07:56,880
Speaker 1: In the case of a home down payment, right you

176
00:07:56,960 --> 00:08:00,920
Speaker 1: have access to ten thousand dollars of raw IRA earnings,

177
00:08:00,960 --> 00:08:03,760
Speaker 1: for instance, in addition to the contributions you've made over

178
00:08:03,800 --> 00:08:06,720
Speaker 1: the years. You can tap those for the down payment

179
00:08:07,080 --> 00:08:12,160
Speaker 1: without paying tax and penalties on those funds. But the

180
00:08:12,280 --> 00:08:15,840
Speaker 1: harm you'd be doing would be interrupting the compounding of

181
00:08:15,880 --> 00:08:19,560
Speaker 1: those dollars way earlier, right than you otherwise would. And

182
00:08:19,600 --> 00:08:22,120
Speaker 1: we'd rather you not take this route so you might

183
00:08:22,120 --> 00:08:25,400
Speaker 1: get the home you want. But opting to snatch those

184
00:08:25,440 --> 00:08:28,320
Speaker 1: dollars back far too soon is going to cost you

185
00:08:28,360 --> 00:08:31,040
Speaker 1: more than you think. It could leave you with a

186
00:08:31,080 --> 00:08:33,280
Speaker 1: six figure shortfall in retirement.

187
00:08:33,360 --> 00:08:33,480
Speaker 2: Right.

188
00:08:33,480 --> 00:08:35,440
Speaker 1: And if we're talking about taking money out of a

189
00:08:35,480 --> 00:08:37,920
Speaker 1: traditional IRA, right, know that you're going to owe tax

190
00:08:38,280 --> 00:08:40,760
Speaker 1: on the ten thousand dollars that you might pull out early,

191
00:08:40,960 --> 00:08:42,840
Speaker 1: which means it's not going as far as you think either.

192
00:08:42,960 --> 00:08:45,800
Speaker 1: So I just think of this as I get why

193
00:08:45,800 --> 00:08:47,640
Speaker 1: people want to do it, and it is allowed, and

194
00:08:47,640 --> 00:08:50,000
Speaker 1: so they're like cool, maybe it sounds like something I

195
00:08:50,000 --> 00:08:53,199
Speaker 1: should hit up. There's like specifically the irs is designated

196
00:08:53,200 --> 00:08:55,160
Speaker 1: an avenue for me to take, But I just think

197
00:08:55,160 --> 00:08:56,559
Speaker 1: that it doesn't make sense for most people.

198
00:08:56,720 --> 00:08:58,800
Speaker 2: Yeah, Like it estented like she's just thinking about maybe

199
00:08:58,840 --> 00:09:00,760
Speaker 2: doing this with the traditional because she just said the

200
00:09:00,800 --> 00:09:03,520
Speaker 2: ten thousand only is what she was taken into account,

201
00:09:03,559 --> 00:09:05,560
Speaker 2: and so for her and her husband, if she's looking

202
00:09:05,559 --> 00:09:07,720
Speaker 2: at twenty thousand dollars, I'm looking off into the future,

203
00:09:07,760 --> 00:09:10,920
Speaker 2: she might be thinking to herself, twenty thousand dollars. That's

204
00:09:10,960 --> 00:09:12,920
Speaker 2: nothing when it comes to in the grand scape of

205
00:09:13,280 --> 00:09:16,040
Speaker 2: retirement dollars. Yeah, but twenty thousand dollars right now, it

206
00:09:16,040 --> 00:09:18,880
Speaker 2: would make a massive difference in our ability to like

207
00:09:18,960 --> 00:09:21,560
Speaker 2: that changes some of our criteria, what you know, the

208
00:09:21,600 --> 00:09:24,160
Speaker 2: kind of home that we're looking at. But that's the thing, Like,

209
00:09:24,240 --> 00:09:26,440
Speaker 2: don't forget that we're talking about compounding here, and so

210
00:09:26,440 --> 00:09:29,760
Speaker 2: we're not talking about twenty thousand dollars in forty years,

211
00:09:30,280 --> 00:09:32,320
Speaker 2: Like in forty years that twenty thousand dollars can compound

212
00:09:32,400 --> 00:09:34,920
Speaker 2: up to like around a million dollars. We're talking about

213
00:09:35,080 --> 00:09:38,240
Speaker 2: a substantially larger amount of money down the road. It's

214
00:09:38,360 --> 00:09:40,439
Speaker 2: not just about how much you're setting aside today, it's

215
00:09:40,480 --> 00:09:43,640
Speaker 2: what that can compound into. So just keep that in mind.

216
00:09:43,720 --> 00:09:45,640
Speaker 2: And you can't undo this either because you can't get

217
00:09:45,640 --> 00:09:47,680
Speaker 2: that money back in You can't get that money back

218
00:09:47,679 --> 00:09:52,000
Speaker 2: into those IRA accounts and invested because of annual contribution limits.

219
00:09:52,520 --> 00:09:55,840
Speaker 2: We would rather see you have less of a down payment,

220
00:09:56,280 --> 00:09:58,880
Speaker 2: or maybe just to reconsider what it is you can afford,

221
00:09:58,920 --> 00:10:01,480
Speaker 2: you know, could you opt for or a slightly more

222
00:10:01,480 --> 00:10:05,280
Speaker 2: affordable home that won't require as much cash. I'm a

223
00:10:05,320 --> 00:10:08,200
Speaker 2: little worried that you might be prioritizing a more expensive home,

224
00:10:08,240 --> 00:10:11,120
Speaker 2: like something a bit nicer, or even having a smaller

225
00:10:11,120 --> 00:10:14,360
Speaker 2: monthly mortgage payment at the expense of those tax advantage

226
00:10:14,400 --> 00:10:18,240
Speaker 2: dollars growing for your future. And you also mentioned the

227
00:10:18,280 --> 00:10:21,520
Speaker 2: additional costs and the fees that you'd be able to cover,

228
00:10:22,000 --> 00:10:24,600
Speaker 2: you know, with some of this extra money on hand. Well,

229
00:10:24,760 --> 00:10:27,880
Speaker 2: those are really important to plan for. These closing costs,

230
00:10:28,240 --> 00:10:30,720
Speaker 2: maintenance that could set you back a decent chunk, some

231
00:10:30,840 --> 00:10:34,520
Speaker 2: deferred maintenance, maybe that the property might need not to mention,

232
00:10:34,679 --> 00:10:36,880
Speaker 2: like you're going to want to decorate it. And a

233
00:10:36,880 --> 00:10:38,760
Speaker 2: lot of times, for a lot of folks, when you

234
00:10:38,760 --> 00:10:40,240
Speaker 2: buy a home. It's a little bit bigger than the

235
00:10:40,240 --> 00:10:41,840
Speaker 2: space you're already in. So you're thinking, oh, well, we

236
00:10:41,880 --> 00:10:44,360
Speaker 2: got we gotta get a new sofa like some even

237
00:10:44,400 --> 00:10:46,480
Speaker 2: if it's used, it still costs money. And so we

238
00:10:46,600 --> 00:10:48,959
Speaker 2: are okay with you not bringing let's just sait like

239
00:10:49,000 --> 00:10:51,160
Speaker 2: a full twenty percent down payment to the closing table

240
00:10:51,200 --> 00:10:53,400
Speaker 2: on your first home purchase. But man, I will say,

241
00:10:53,400 --> 00:10:56,640
Speaker 2: saving up like five percent for that down payment and

242
00:10:56,679 --> 00:10:58,920
Speaker 2: then on top of that having cash for some of

243
00:10:58,920 --> 00:11:02,240
Speaker 2: those other necessities, I think that is very important. That's crucial.

244
00:11:02,320 --> 00:11:05,360
Speaker 1: Yeah, And if you can't meet that requirement without tapping

245
00:11:05,440 --> 00:11:08,720
Speaker 1: your retirement funds to get there, we would say then

246
00:11:08,760 --> 00:11:11,080
Speaker 1: it's just too soon in the process, and you probably

247
00:11:11,080 --> 00:11:13,240
Speaker 1: need to rent for another year or two and continue

248
00:11:13,240 --> 00:11:16,760
Speaker 1: saving up right to amass the amount you need to

249
00:11:16,840 --> 00:11:19,800
Speaker 1: buy the home that you want. And I think the

250
00:11:19,840 --> 00:11:23,400
Speaker 1: only exception Matt to kind of this advice would be

251
00:11:23,440 --> 00:11:25,880
Speaker 1: if you are house hacking, because if you're taking out

252
00:11:26,000 --> 00:11:30,559
Speaker 1: money from one investment account to fund another investment.

253
00:11:30,320 --> 00:11:31,800
Speaker 2: A very different type of investment.

254
00:11:32,120 --> 00:11:34,160
Speaker 1: Yeah, they're very different, but I think that can be

255
00:11:34,200 --> 00:11:37,040
Speaker 1: a reasonable choice. I could go on calling in and saying, hey, listen,

256
00:11:37,040 --> 00:11:39,360
Speaker 1: it's got this basement apartment that I'm planning to airbnb

257
00:11:39,840 --> 00:11:43,040
Speaker 1: and then and that's going to I think produce significant returns.

258
00:11:43,280 --> 00:11:45,680
Speaker 1: So ultimately it's just going to lower our housing costs

259
00:11:45,679 --> 00:11:47,600
Speaker 1: by a whole lot. Or man, we're thinking about buying

260
00:11:47,600 --> 00:11:50,240
Speaker 1: a triplex and living in one unit and running out

261
00:11:50,280 --> 00:11:53,120
Speaker 1: the other two, Well, then you're doing something completely different

262
00:11:53,120 --> 00:11:54,959
Speaker 1: and you're turning your housing costs on their face.

263
00:11:55,120 --> 00:11:56,920
Speaker 2: Yeah, And if you are.

264
00:11:56,840 --> 00:11:59,480
Speaker 1: Into the house hacking lifestyle, if you're willing to go

265
00:11:59,840 --> 00:12:02,760
Speaker 1: to those extremes, then taking money out of one investment

266
00:12:02,760 --> 00:12:05,280
Speaker 1: to fund another, I just have a lot more leniency

267
00:12:05,360 --> 00:12:07,720
Speaker 1: for if it's just a fund a nicer single family

268
00:12:07,760 --> 00:12:09,880
Speaker 1: home purchase. Though I have sympathy, but I don't have

269
00:12:09,920 --> 00:12:12,160
Speaker 1: a lot of But I'm not willing to sign off

270
00:12:12,200 --> 00:12:13,480
Speaker 1: on that move either.

271
00:12:13,280 --> 00:12:15,840
Speaker 2: Totally agree. Another caveat too, and I don't think Andrew's

272
00:12:15,880 --> 00:12:17,839
Speaker 2: in this position, But if they have a massive amount

273
00:12:17,880 --> 00:12:21,160
Speaker 2: already set aside in their retirement accounts, students say this,

274
00:12:21,200 --> 00:12:23,360
Speaker 2: but let's say they've got five hundred thousand combined in

275
00:12:23,360 --> 00:12:26,600
Speaker 2: four to one k's okay, I'm fine with you taking

276
00:12:26,640 --> 00:12:28,760
Speaker 2: twenty thousand, like honestly, because of the fact that it

277
00:12:28,760 --> 00:12:30,880
Speaker 2: would be such a small drop in the bucket of

278
00:12:30,920 --> 00:12:33,000
Speaker 2: their overall retirement savings. That's a good point, but I

279
00:12:33,040 --> 00:12:35,240
Speaker 2: didn't necessarily hear that in nangerous question.

280
00:12:35,280 --> 00:12:38,360
Speaker 1: Yeah, if they're thirty five and they're well on their

281
00:12:38,360 --> 00:12:41,080
Speaker 1: way to they do have something like half a million

282
00:12:41,120 --> 00:12:44,920
Speaker 1: dollars invested saved up already in retirement accounts. Versus, hey,

283
00:12:44,920 --> 00:12:47,280
Speaker 1: we're taking twenty grand out of our total of sixty

284
00:12:47,559 --> 00:12:49,400
Speaker 1: That would frighten me more too, because hey, you just

285
00:12:49,520 --> 00:12:53,040
Speaker 1: haven't built up enough to allow yourself. I think the

286
00:12:53,120 --> 00:12:56,040
Speaker 1: luxury of tapping those funds early. And I hope that

287
00:12:56,160 --> 00:12:58,439
Speaker 1: our cautious approach isn't shutting down your goal of home

288
00:12:58,440 --> 00:13:01,680
Speaker 1: ownership bandry. That is not our intent here. We don't

289
00:13:01,720 --> 00:13:05,400
Speaker 1: think home ownership is a necessity to building wealth. It's

290
00:13:05,400 --> 00:13:06,840
Speaker 1: more of a lifestyle goal, and it can be an

291
00:13:06,840 --> 00:13:08,800
Speaker 1: awesome one. Matt, you and I we both own our

292
00:13:08,840 --> 00:13:11,880
Speaker 1: own homes. I mean caveat they have a mortgage attached

293
00:13:11,880 --> 00:13:15,000
Speaker 1: to them, so the bank co owns those homesless at

294
00:13:15,040 --> 00:13:16,800
Speaker 1: this point in time. But we want the same thing

295
00:13:16,840 --> 00:13:19,120
Speaker 1: for you. We just don't want you to rush it right.

296
00:13:19,160 --> 00:13:20,480
Speaker 1: We don't want you to bite off more than you

297
00:13:20,480 --> 00:13:24,439
Speaker 1: can chew, or to hamstring your other future financial goals

298
00:13:24,720 --> 00:13:29,600
Speaker 1: by maybe putting this goal of home ownership before prioritizing

299
00:13:29,960 --> 00:13:33,160
Speaker 1: saving up for it and leaving your retirement accounts intact totally.

300
00:13:33,160 --> 00:13:36,280
Speaker 2: And I think sometimes constraining yourself you are not tapping

301
00:13:36,320 --> 00:13:39,920
Speaker 2: this easily accessible bucket of future money. I think that

302
00:13:39,960 --> 00:13:43,080
Speaker 2: could sometimes lead to the most creative results. So, for instance,

303
00:13:43,120 --> 00:13:45,840
Speaker 2: are there any local first time down payment assistance programs?

304
00:13:45,960 --> 00:13:48,680
Speaker 2: That's something I would do some digging around on see

305
00:13:48,679 --> 00:13:50,960
Speaker 2: if that's available to you. Even just shifting how it

306
00:13:51,000 --> 00:13:54,160
Speaker 2: is that you think about this purchase, Like if there's

307
00:13:54,200 --> 00:13:56,559
Speaker 2: a way for you to maybe even sort of gamify

308
00:13:57,040 --> 00:13:59,400
Speaker 2: the sacrifices that you're able to make in the here

309
00:13:59,440 --> 00:14:02,280
Speaker 2: and now because you want because for you and your husband,

310
00:14:02,280 --> 00:14:04,880
Speaker 2: this is a shared goal and it's so important it's

311
00:14:04,880 --> 00:14:06,920
Speaker 2: worth sacrificing, like I think, and that's what I did

312
00:14:06,960 --> 00:14:09,160
Speaker 2: with Kate and I. We were in our early twenties.

313
00:14:09,200 --> 00:14:11,640
Speaker 2: We didn't hardly have any money, but man, we didn't.

314
00:14:11,720 --> 00:14:14,400
Speaker 2: We stopped going out to eat. We were cutting left

315
00:14:14,400 --> 00:14:17,600
Speaker 2: and right to find ways to decrease our expenses and

316
00:14:18,000 --> 00:14:20,960
Speaker 2: at the same time increasing our income. And that's when

317
00:14:21,000 --> 00:14:23,520
Speaker 2: we started our side business, which turned into a full

318
00:14:23,560 --> 00:14:27,080
Speaker 2: fledged business, and that allowed us to put down a

319
00:14:27,120 --> 00:14:29,360
Speaker 2: great down payment on our first home. That's when we

320
00:14:29,400 --> 00:14:31,400
Speaker 2: sold our that's when we sold the jeep, but that

321
00:14:31,520 --> 00:14:33,520
Speaker 2: was some additional money that we were able to put

322
00:14:33,680 --> 00:14:35,760
Speaker 2: towards our home because for us that was so important.

323
00:14:35,760 --> 00:14:37,120
Speaker 2: And so I don't know if you can make it

324
00:14:37,200 --> 00:14:40,040
Speaker 2: almost like this focal point, not to get obsessive over it,

325
00:14:40,280 --> 00:14:42,640
Speaker 2: but for it to inform why it is you're willing

326
00:14:42,640 --> 00:14:44,520
Speaker 2: to make some sacrifices in the here and now. I

327
00:14:44,560 --> 00:14:46,480
Speaker 2: think it's okay to get a little obsessive too, right,

328
00:14:46,800 --> 00:14:48,880
Speaker 2: if it's important to you, It just depends on how

329
00:14:48,880 --> 00:14:49,560
Speaker 2: into it you are.

330
00:14:49,720 --> 00:14:51,800
Speaker 1: Not only could we get the fifteen grand or whatever

331
00:14:51,880 --> 00:14:54,640
Speaker 1: whatever our Honda CRV or whatever you drive is worth,

332
00:14:54,800 --> 00:14:57,040
Speaker 1: but then we also save the money on insurance costs. Boy,

333
00:14:57,120 --> 00:15:00,640
Speaker 1: that's just like tapping our ira, except for notw we

334
00:15:00,800 --> 00:15:04,800
Speaker 1: just sold a valuable asset instead. And for instance, when

335
00:15:04,800 --> 00:15:06,680
Speaker 1: I bought my first house, branded out a room in

336
00:15:06,720 --> 00:15:08,680
Speaker 1: it during that time to kind of I knew I

337
00:15:08,720 --> 00:15:10,320
Speaker 1: could afford it by myself, but I was like, man,

338
00:15:10,360 --> 00:15:12,280
Speaker 1: this is another way just for me to make this

339
00:15:12,320 --> 00:15:14,480
Speaker 1: a slam dunk purchase. There are all sorts of like

340
00:15:14,560 --> 00:15:16,320
Speaker 1: outside of the box choices you can make, Matt, and

341
00:15:16,560 --> 00:15:19,160
Speaker 1: you specifically use a word like constraints. And I do

342
00:15:19,200 --> 00:15:22,120
Speaker 1: think that constraining yourself in a particular way for a

343
00:15:22,120 --> 00:15:25,360
Speaker 1: specific goal can lead to creativity. It can kind of

344
00:15:25,440 --> 00:15:28,840
Speaker 1: unleash some creativity in your life that might have otherwise

345
00:15:28,960 --> 00:15:31,720
Speaker 1: lain dormant. So that's what we would encourage you towards. Andrea,

346
00:15:31,800 --> 00:15:33,880
Speaker 1: I think you can still hit your goal and potentially

347
00:15:33,920 --> 00:15:36,960
Speaker 1: still in the timeline you want while not tapping your

348
00:15:36,960 --> 00:15:38,800
Speaker 1: IRA at the same time, and you're going to be

349
00:15:38,800 --> 00:15:41,320
Speaker 1: happier decades down the road because hey, you were able

350
00:15:41,360 --> 00:15:43,600
Speaker 1: to buy the house and you are also able to

351
00:15:43,680 --> 00:15:45,240
Speaker 1: keep your retirement accounts intact.

352
00:15:45,440 --> 00:15:47,120
Speaker 2: That's right, man. But we've got more to get to

353
00:15:47,280 --> 00:15:50,920
Speaker 2: on today's episode, including someone who's looking to for they're

354
00:15:50,920 --> 00:15:53,360
Speaker 2: looking for an alternative to taking out student loans. We'll

355
00:15:53,360 --> 00:15:54,840
Speaker 2: get to that and more right after this.

356
00:16:02,720 --> 00:16:04,840
Speaker 1: All right, Matt, we're back time to get some more

357
00:16:05,280 --> 00:16:08,160
Speaker 1: listener questions. Now, let's get to a question about best

358
00:16:08,160 --> 00:16:10,840
Speaker 1: practices for when to tap Social Security.

359
00:16:11,200 --> 00:16:16,120
Speaker 4: Hi, this is Rebecca from Connecticut. My question relates to

360
00:16:16,200 --> 00:16:21,080
Speaker 4: taking Social Security when one spouse is greater than ten

361
00:16:21,200 --> 00:16:26,520
Speaker 4: years younger than the older spouse. I'm one hundred and

362
00:16:26,600 --> 00:16:30,280
Speaker 4: twenty two months younger than my husband and he started

363
00:16:30,280 --> 00:16:34,200
Speaker 4: taking Social Security at age seventy. And I know there's

364
00:16:34,240 --> 00:16:39,440
Speaker 4: specific rules regarding spousal social Security when one spouse is

365
00:16:39,720 --> 00:16:42,360
Speaker 4: more than ten years younger than the other, and I'm

366
00:16:42,360 --> 00:16:46,080
Speaker 4: reading the dot gov documents and it's really confusing to me.

367
00:16:46,800 --> 00:16:50,240
Speaker 4: So could you explain that to us? Thanks? Have a

368
00:16:50,240 --> 00:16:51,320
Speaker 4: great day, Joe.

369
00:16:51,360 --> 00:16:53,240
Speaker 2: When you're first listening to Rebecca's question, did you think

370
00:16:53,240 --> 00:16:55,400
Speaker 2: for a second that she was one hundred something years

371
00:16:55,400 --> 00:16:58,840
Speaker 2: old the way she said that, which she said, I

372
00:16:58,840 --> 00:16:59,840
Speaker 2: am one hundred You wait.

373
00:16:59,720 --> 00:17:03,480
Speaker 1: That, so tap social Security. You've waited too long, Rebecca.

374
00:17:03,600 --> 00:17:06,040
Speaker 1: That we really appreciate your question. If she's listening to

375
00:17:06,080 --> 00:17:08,280
Speaker 1: podcasts at one hundred plus years of age, like more

376
00:17:08,320 --> 00:17:11,480
Speaker 1: power to Oh, yeah, you get special status granted to you.

377
00:17:11,480 --> 00:17:13,120
Speaker 1: You're the youngest centenary at heart.

378
00:17:13,119 --> 00:17:15,439
Speaker 2: Ever, I wanted to say, like, I love, Rebecca that

379
00:17:15,480 --> 00:17:19,200
Speaker 2: your spouse waited to take Social Security until he turned seventy,

380
00:17:19,280 --> 00:17:21,640
Speaker 2: because that's going to ensure that he gets like not

381
00:17:21,720 --> 00:17:26,520
Speaker 2: just the maximum retirement benefit, but the additional delayed retirement credit.

382
00:17:26,920 --> 00:17:28,560
Speaker 2: There are far too many folks out there who are

383
00:17:28,560 --> 00:17:31,000
Speaker 2: tapping Social Security when they are first allowed, right when

384
00:17:31,000 --> 00:17:35,000
Speaker 2: they turn sixty two or shortly thereafter, and that can

385
00:17:35,080 --> 00:17:38,119
Speaker 2: cost like six figures over the coming decades. And it

386
00:17:38,280 --> 00:17:40,919
Speaker 2: also means that you minimize that payout, which is a

387
00:17:41,040 --> 00:17:44,440
Speaker 2: known quantity. This is something that is certain you eliminate

388
00:17:44,680 --> 00:17:48,320
Speaker 2: risk by in this case, by waiting, so unlike future

389
00:17:48,359 --> 00:17:53,719
Speaker 2: market returns, which certainly have the ability to be outsized.

390
00:17:53,760 --> 00:17:55,120
Speaker 2: I don't know. I feel I'm about to talk out

391
00:17:55,119 --> 00:17:57,480
Speaker 2: of both sides of my mouth here, because I love

392
00:17:57,560 --> 00:17:58,280
Speaker 2: investing in the market.

393
00:17:58,359 --> 00:18:00,000
Speaker 1: But at that point in time, hopefully you have invested

394
00:18:00,200 --> 00:18:02,320
Speaker 1: enough in the market and the best goal for you

395
00:18:02,800 --> 00:18:05,320
Speaker 1: is to snag the certain higher paycheck.

396
00:18:05,359 --> 00:18:06,760
Speaker 2: It just well, it depends on what you plan on

397
00:18:06,800 --> 00:18:08,679
Speaker 2: doing with the money, too, because like I think about

398
00:18:08,960 --> 00:18:11,960
Speaker 2: like my dad specifically, he and this is an unpopular

399
00:18:12,040 --> 00:18:13,720
Speaker 2: sort of take, but he took the check as soon

400
00:18:13,720 --> 00:18:15,439
Speaker 2: as it was available to him. Yeah, and he but

401
00:18:15,480 --> 00:18:17,320
Speaker 2: he didn't need the money necessarily, and so he's been

402
00:18:17,320 --> 00:18:20,920
Speaker 2: investing those monthly payments for something like the last four years,

403
00:18:21,000 --> 00:18:23,159
Speaker 2: and I'm pretty he's done really well, he's better than

404
00:18:23,240 --> 00:18:25,960
Speaker 2: what if you know, I've watched the stock market what

405
00:18:26,000 --> 00:18:27,440
Speaker 2: it has done over the past four years, but even

406
00:18:27,680 --> 00:18:29,600
Speaker 2: even outside of the past four years, and what the

407
00:18:29,600 --> 00:18:32,919
Speaker 2: market's returned there generally speaking, the stock market, right, we

408
00:18:32,920 --> 00:18:35,399
Speaker 2: can look at historical returns and you're looking at ten percent,

409
00:18:35,920 --> 00:18:38,119
Speaker 2: not including inflation. And so if you don't need the

410
00:18:38,119 --> 00:18:40,080
Speaker 2: money and you have the discipline on hand to be

411
00:18:40,080 --> 00:18:41,959
Speaker 2: able to invest some of those dollars, I think that

412
00:18:41,960 --> 00:18:44,159
Speaker 2: that can be that can be a great move as

413
00:18:44,200 --> 00:18:46,560
Speaker 2: one reasonable strategy, But there are so many factors that

414
00:18:46,680 --> 00:18:48,919
Speaker 2: go into whether or not you should do that. It

415
00:18:48,960 --> 00:18:51,440
Speaker 2: depends on what whether or not most folks they need

416
00:18:51,480 --> 00:18:53,440
Speaker 2: that much, right, right, Like this is an additional money

417
00:18:53,480 --> 00:18:54,560
Speaker 2: that they're looking to just invest.

418
00:18:54,680 --> 00:18:56,199
Speaker 1: That's right, And I think it's important to mention like

419
00:18:56,200 --> 00:18:58,399
Speaker 1: your dad is in a different position, but most people,

420
00:18:58,480 --> 00:19:01,520
Speaker 1: my parents included, like, they need the certainty that comes

421
00:19:01,520 --> 00:19:03,880
Speaker 1: along with a guaranteed eight percent return that you get

422
00:19:03,960 --> 00:19:06,600
Speaker 1: by delaying that check each and every year. Right, Yeah,

423
00:19:06,640 --> 00:19:08,400
Speaker 1: And there is kind of like you're pointing out here, Matt,

424
00:19:08,440 --> 00:19:10,760
Speaker 1: there's a lot of nuance about when you tap SOOCCE security.

425
00:19:10,760 --> 00:19:14,159
Speaker 1: There's not one right answer and there's even more nuance

426
00:19:14,240 --> 00:19:16,520
Speaker 1: right in this particular question because we're talking about a

427
00:19:16,520 --> 00:19:20,960
Speaker 1: significant age gap between the partners. And a lot depends

428
00:19:21,000 --> 00:19:24,360
Speaker 1: too on your health, like how you're feeling when you

429
00:19:24,480 --> 00:19:27,280
Speaker 1: turn enter into your sixties and you kind of get

430
00:19:27,320 --> 00:19:29,760
Speaker 1: to that point in time where you can tap social Security.

431
00:19:30,119 --> 00:19:32,960
Speaker 1: If you have, let's say, a diagnosis, or you feel

432
00:19:32,960 --> 00:19:37,040
Speaker 1: like your general health trajectory is just going downward, then yeah,

433
00:19:37,119 --> 00:19:40,640
Speaker 1: you might be inclined to tap those security earlier than

434
00:19:40,680 --> 00:19:43,720
Speaker 1: what the experts would suggest. It also depends on what

435
00:19:43,760 --> 00:19:46,080
Speaker 1: your spouse is doing, right, how much debt do you have,

436
00:19:46,200 --> 00:19:48,879
Speaker 1: what does your investment portfolio look like? What are your

437
00:19:49,160 --> 00:19:49,920
Speaker 1: cash flow needs?

438
00:19:49,920 --> 00:19:50,000
Speaker 4: Like?

439
00:19:50,000 --> 00:19:52,640
Speaker 2: Those are all I think really important questions. Yeah, if

440
00:19:52,640 --> 00:19:54,639
Speaker 2: you need that money, Yeah, Like if you don't have

441
00:19:54,720 --> 00:19:57,359
Speaker 2: the cash load, then oh no, we're taking social Security

442
00:19:57,359 --> 00:19:58,639
Speaker 2: because that's what that's what we're going to live.

443
00:19:58,840 --> 00:20:00,359
Speaker 1: And wouldn't it be like a million times easier to

444
00:20:00,400 --> 00:20:02,919
Speaker 1: answer this question if you knew the date of your

445
00:20:02,960 --> 00:20:05,600
Speaker 1: death right if you could say, of course, well, lucky me,

446
00:20:05,680 --> 00:20:08,399
Speaker 1: I'm not dying for another thirty five years, so it

447
00:20:08,440 --> 00:20:10,480
Speaker 1: makes sense for me to punt, or if you knew

448
00:20:10,520 --> 00:20:12,320
Speaker 1: what the future market returns would be. But those are

449
00:20:12,320 --> 00:20:15,520
Speaker 1: two unanswerable questions I think. I think for the average person,

450
00:20:15,560 --> 00:20:18,000
Speaker 1: then the best thing to do is to punt a

451
00:20:18,000 --> 00:20:20,320
Speaker 1: little bit longer to take your social Security to bake

452
00:20:20,359 --> 00:20:23,280
Speaker 1: in that guaranteed check. And Matt, that can also shift.

453
00:20:23,480 --> 00:20:25,720
Speaker 1: By the way, my mom, she was planning on holding

454
00:20:25,720 --> 00:20:27,600
Speaker 1: off on taking social Security and just taking a little

455
00:20:27,640 --> 00:20:31,000
Speaker 1: more out of retirement accounts, but she had a recent diagnosis.

456
00:20:31,040 --> 00:20:33,159
Speaker 1: I haven't really talked about this on the show, probably

457
00:20:33,160 --> 00:20:34,880
Speaker 1: not planning on talking about it in depth right now,

458
00:20:35,000 --> 00:20:37,359
Speaker 1: but this has changed their planning and the way they

459
00:20:37,359 --> 00:20:39,360
Speaker 1: think about taking social Security is so she has now

460
00:20:39,560 --> 00:20:41,800
Speaker 1: tap social Security, which makes sense, like this is something

461
00:20:41,800 --> 00:20:44,200
Speaker 1: we've talked about together, So this is this is also

462
00:20:44,480 --> 00:20:47,080
Speaker 1: a fluid conversation. It's not necessarily something you come to

463
00:20:47,440 --> 00:20:49,199
Speaker 1: an answer on and you set it and forget it.

464
00:20:49,240 --> 00:20:50,960
Speaker 2: And that is one of the great things too about

465
00:20:50,960 --> 00:20:53,040
Speaker 2: this is that once you make a decision, you can,

466
00:20:53,280 --> 00:20:54,719
Speaker 2: to a certain extent, you can undo it. You can

467
00:20:54,800 --> 00:20:57,240
Speaker 2: change your mind down the road. But likely the best

468
00:20:57,240 --> 00:21:01,040
Speaker 2: claiming strategy here for you, Rebecca is free to take

469
00:21:01,119 --> 00:21:05,040
Speaker 2: social Security as soon as possible, especially since your husband,

470
00:21:05,119 --> 00:21:07,560
Speaker 2: since he waited until the optimal time to take his

471
00:21:08,440 --> 00:21:12,320
Speaker 2: This is what's known as a split strategy, and so

472
00:21:12,359 --> 00:21:15,320
Speaker 2: it means that you're claiming at two different points in time,

473
00:21:15,920 --> 00:21:17,879
Speaker 2: and you're going to have two checks coming in for

474
00:21:17,920 --> 00:21:21,359
Speaker 2: as long as possible. And then if your husband were

475
00:21:21,440 --> 00:21:23,320
Speaker 2: to pass away before you, which is I know this

476
00:21:23,400 --> 00:21:27,240
Speaker 2: is awkward to say, but this is likely given actuarial tables,

477
00:21:27,280 --> 00:21:29,760
Speaker 2: given the fact that you are so much younger, well,

478
00:21:30,000 --> 00:21:33,119
Speaker 2: you're going to be eligible to receive his inevitably much

479
00:21:33,280 --> 00:21:37,200
Speaker 2: higher check at that point. So that means more money

480
00:21:37,240 --> 00:21:39,920
Speaker 2: each and every month now, but it also means more

481
00:21:39,960 --> 00:21:43,199
Speaker 2: money for you if you were to become widowed. I

482
00:21:43,200 --> 00:21:44,520
Speaker 2: think that's likely the best option.

483
00:21:44,680 --> 00:21:47,520
Speaker 1: Yeah, I agree, I think that in her specific scenario,

484
00:21:47,600 --> 00:21:50,480
Speaker 1: this is this is what I would suggest. And you know,

485
00:21:50,520 --> 00:21:53,800
Speaker 1: we're not even talking about waiting to claim until full

486
00:21:53,880 --> 00:21:57,000
Speaker 1: retirement age. For Rebecca, claiming at sixty two could make

487
00:21:57,000 --> 00:21:59,160
Speaker 1: the most sense for her. And it's funny because we're

488
00:21:59,160 --> 00:22:00,919
Speaker 1: just talking about waiting and waiting and waiting, but her

489
00:22:01,000 --> 00:22:03,679
Speaker 1: husband did the waiting and so maybe now she can

490
00:22:03,720 --> 00:22:05,760
Speaker 1: tap hers early. And you're getting kind of different to

491
00:22:05,800 --> 00:22:06,200
Speaker 1: both works.

492
00:22:06,200 --> 00:22:07,359
Speaker 2: You get that money flowing.

493
00:22:07,160 --> 00:22:09,959
Speaker 1: In and then so the answer to this question can

494
00:22:10,040 --> 00:22:13,359
Speaker 1: vary greatly depending on a couple specific factors too, Right,

495
00:22:13,359 --> 00:22:15,359
Speaker 1: there is no one size fits all answer. But the

496
00:22:15,400 --> 00:22:19,040
Speaker 1: biggest thing for Rebecca given the parameter she mentioned, is

497
00:22:19,040 --> 00:22:21,520
Speaker 1: that her husband took the smart route waiting to claim,

498
00:22:21,560 --> 00:22:23,439
Speaker 1: and that acts kind of like, I don't know, man,

499
00:22:23,480 --> 00:22:26,840
Speaker 1: I'm gonna call it a social security insurance policy for

500
00:22:26,880 --> 00:22:29,920
Speaker 1: her in the future. Right, and he has basically gotten

501
00:22:29,920 --> 00:22:32,840
Speaker 1: the maximum check he was allowed, acts as this insurance

502
00:22:32,880 --> 00:22:35,600
Speaker 1: policy for himself in for Rebecca. And then this also

503
00:22:35,640 --> 00:22:38,840
Speaker 1: allows them to minimize the amount they're taking from retirement

504
00:22:38,880 --> 00:22:40,800
Speaker 1: accounts by having those two checks coming in as soon

505
00:22:40,840 --> 00:22:44,800
Speaker 1: as possible, allowing money in the market in their poor

506
00:22:44,840 --> 00:22:47,440
Speaker 1: one case, and their iras to continue to grow too.

507
00:22:47,520 --> 00:22:50,600
Speaker 1: So to me, that's the best route for Rebecca or

508
00:22:50,600 --> 00:22:53,000
Speaker 1: her husband moving forward in regards to social security.

509
00:22:53,080 --> 00:22:54,760
Speaker 2: Yeah, and there are some great tools out there these

510
00:22:54,840 --> 00:22:58,440
Speaker 2: days that can help you to make the most optimized decision, Rebecca,

511
00:22:59,080 --> 00:23:02,239
Speaker 2: maximize my social security. That's a great one that some

512
00:23:02,320 --> 00:23:06,120
Speaker 2: economists out there have developed. It's not free. I'll say

513
00:23:06,160 --> 00:23:07,680
Speaker 2: that it's going to cost you a little bit of money.

514
00:23:07,720 --> 00:23:09,800
Speaker 2: I think it's like fifty bucks for a year. But

515
00:23:10,080 --> 00:23:12,160
Speaker 2: that being said, I think it's well worth it given

516
00:23:12,200 --> 00:23:14,439
Speaker 2: the amount of money that is at stake here with

517
00:23:14,560 --> 00:23:18,160
Speaker 2: your social security. You can also hire a financial advisor

518
00:23:18,720 --> 00:23:22,199
Speaker 2: to talk through the pros and cons. The added benefit

519
00:23:22,240 --> 00:23:23,760
Speaker 2: here is that you would you know, they would look

520
00:23:23,800 --> 00:23:27,000
Speaker 2: at your entire financial situation, which I could see some

521
00:23:27,080 --> 00:23:30,280
Speaker 2: benefit there if you are interested, check out Hello Nectarene.

522
00:23:30,640 --> 00:23:33,080
Speaker 2: That is only one hundred and fifty dollars an hour. Again,

523
00:23:33,560 --> 00:23:35,639
Speaker 2: this is a low fee to not screw something that's

524
00:23:36,200 --> 00:23:39,520
Speaker 2: just so massive that could have long lasting implications. If

525
00:23:39,560 --> 00:23:41,159
Speaker 2: you're going to do like a frugicial finance.

526
00:23:41,000 --> 00:23:42,919
Speaker 1: Frugler cheap rating man, I'm going to say frugal right,

527
00:23:43,160 --> 00:23:45,240
Speaker 1: to pay for help, It's like what we talk about

528
00:23:45,280 --> 00:23:49,320
Speaker 1: in when it comes to paying for tax help tax advice. Oftentimes,

529
00:23:49,359 --> 00:23:51,920
Speaker 1: that few hundred dollars three four, five hundred dollars you

530
00:23:51,920 --> 00:23:54,960
Speaker 1: would pay to a tax professional to help you assess,

531
00:23:55,080 --> 00:23:59,040
Speaker 1: way and file your taxes could save you a lot

532
00:23:59,040 --> 00:24:00,000
Speaker 1: more money on the back end.

533
00:24:00,000 --> 00:24:01,440
Speaker 2: They can save you a big bucks. Yeah, And it's

534
00:24:01,440 --> 00:24:04,000
Speaker 2: different when you are early on in your financial journey, right,

535
00:24:04,040 --> 00:24:05,520
Speaker 2: Like there's not a whole lot of decision making to

536
00:24:05,560 --> 00:24:08,560
Speaker 2: be done sure, like widely diversified low cost index funds. Boom,

537
00:24:08,600 --> 00:24:10,640
Speaker 2: there you go. We just saved you a bunch of money.

538
00:24:10,640 --> 00:24:13,000
Speaker 1: I don't have any round properties. My taxes are pretty basic,

539
00:24:13,119 --> 00:24:15,440
Speaker 1: like the DIY thing. Totally fine. You know you can

540
00:24:15,560 --> 00:24:19,480
Speaker 1: do cash app taxes or the IRS's direct file, whatever

541
00:24:19,520 --> 00:24:21,879
Speaker 1: it is. The stakes are low, but when there is

542
00:24:21,960 --> 00:24:24,280
Speaker 1: more money on the line, especially once you are getting

543
00:24:24,280 --> 00:24:26,840
Speaker 1: towards the end of your financial journey, I think hiring

544
00:24:26,880 --> 00:24:28,879
Speaker 1: an advisor could be well worth it.

545
00:24:28,960 --> 00:24:31,000
Speaker 2: Rebecca. We hope that gets you pointed in the right direction.

546
00:24:31,440 --> 00:24:33,320
Speaker 2: Joel is here from a listener who is looking to

547
00:24:33,359 --> 00:24:36,240
Speaker 2: minimize student loans. But not just any student loan. This

548
00:24:36,320 --> 00:24:38,680
Speaker 2: is like a potential student loan with like a very

549
00:24:38,680 --> 00:24:39,520
Speaker 2: specific purpose.

550
00:24:39,960 --> 00:24:42,840
Speaker 5: Good morning, Joel, I listened to you on KFI. Thanks

551
00:24:42,880 --> 00:24:45,600
Speaker 5: for your great money tips. I always enjoy hearing them.

552
00:24:46,080 --> 00:24:48,240
Speaker 5: My twenty two year old daughter has been accepted into

553
00:24:48,320 --> 00:24:52,360
Speaker 5: a program to study next semester in Japan. She's an

554
00:24:52,359 --> 00:24:56,800
Speaker 5: international business major with a Japanese minor at cal State Fluorton.

555
00:24:57,160 --> 00:24:59,040
Speaker 5: She's looking to get a student loan to help pay

556
00:24:59,080 --> 00:25:01,560
Speaker 5: for it senior year, and this is the only debt

557
00:25:01,600 --> 00:25:04,280
Speaker 5: she is personally taking on in her education. We have

558
00:25:04,359 --> 00:25:06,520
Speaker 5: paid for the rest. I was wondering if there are

559
00:25:06,520 --> 00:25:09,440
Speaker 5: any special student loans that are better for studying abroad.

560
00:25:10,280 --> 00:25:13,000
Speaker 5: If so, could you recommend the best places to search

561
00:25:13,040 --> 00:25:15,840
Speaker 5: for that loan. This is sort of a timely process

562
00:25:16,040 --> 00:25:19,840
Speaker 5: since she has was accepted due dates are rolling forward quickly.

563
00:25:20,240 --> 00:25:23,040
Speaker 5: You always have such great information and I trust what

564
00:25:23,160 --> 00:25:26,080
Speaker 5: you share. I want to help my daughter get a

565
00:25:26,119 --> 00:25:27,960
Speaker 5: loan that is the best for her. Thanks so much

566
00:25:27,960 --> 00:25:28,560
Speaker 5: for your time.

567
00:25:29,119 --> 00:25:33,160
Speaker 2: Megan Joel, did she say Meghan or Megan? I think

568
00:25:33,160 --> 00:25:35,840
Speaker 2: it was Meghana because we have a friend named Meghan,

569
00:25:36,080 --> 00:25:37,359
Speaker 2: and she's the only Meghan we know.

570
00:25:37,480 --> 00:25:40,840
Speaker 1: Never met another one. Yeah, it's a unique name, but

571
00:25:40,880 --> 00:25:42,800
Speaker 1: I'm pretty sure this was Meghan and Matt. I actually

572
00:25:42,800 --> 00:25:44,040
Speaker 1: don't think we've talked about this on the.

573
00:25:44,920 --> 00:25:47,239
Speaker 2: This is All You because she addressed you only so

574
00:25:47,359 --> 00:25:49,040
Speaker 2: she did get to sit by the handle this, sit

575
00:25:49,080 --> 00:25:50,440
Speaker 2: back and relax, take a chill pill.

576
00:25:50,920 --> 00:25:51,120
Speaker 3: Well.

577
00:25:51,480 --> 00:25:55,040
Speaker 1: The How the Money podcast actually airs locally on KFI

578
00:25:55,080 --> 00:25:57,800
Speaker 1: in Los Angeles on the weekends now and we have

579
00:25:57,840 --> 00:26:00,480
Speaker 1: regular appearances on the station too. It's been a really fun,

580
00:26:00,560 --> 00:26:03,760
Speaker 1: great partnership for us, and so basically Matt, you and

581
00:26:03,760 --> 00:26:07,040
Speaker 1: I were mixing new media and classic media. But did

582
00:26:07,119 --> 00:26:09,280
Speaker 1: you ever think and how proud is your dad that

583
00:26:09,359 --> 00:26:11,600
Speaker 1: you are now heard on AM radio in one of

584
00:26:11,600 --> 00:26:12,760
Speaker 1: the biggest cities in the country.

585
00:26:13,240 --> 00:26:15,720
Speaker 2: I don't think he knows. He really he does know.

586
00:26:15,960 --> 00:26:18,560
Speaker 2: He does. Now I'll call him. Okay, yeah, you're gonna

587
00:26:18,600 --> 00:26:21,720
Speaker 2: have to shoot him at tight. Actually we're talking old

588
00:26:21,760 --> 00:26:23,960
Speaker 2: and new medium media. Once you go ahead and to

589
00:26:23,960 --> 00:26:26,719
Speaker 2: send him as snail mail, you're at it. I'll do that.

590
00:26:26,760 --> 00:26:29,560
Speaker 1: But yeah, no, it's cool to get to be on

591
00:26:29,800 --> 00:26:32,360
Speaker 1: such a great radio station and to get to serve

592
00:26:32,400 --> 00:26:34,840
Speaker 1: the people of Los Angeles. But Matt, let's get onto

593
00:26:34,920 --> 00:26:38,720
Speaker 1: Meghan's question. We got to say, first off, great parenting

594
00:26:39,119 --> 00:26:41,199
Speaker 1: by you, Meghan. I mean, it's incredible that you've been

595
00:26:41,240 --> 00:26:43,720
Speaker 1: able to get your daughter through college debt free. Until

596
00:26:43,720 --> 00:26:46,800
Speaker 1: this point, we don't actually see that as being incumbent

597
00:26:46,840 --> 00:26:48,520
Speaker 1: on all parents that they have to provide that, or

598
00:26:48,520 --> 00:26:50,840
Speaker 1: their deadbeat parents or anything like that. There are just

599
00:26:50,840 --> 00:26:52,959
Speaker 1: so many ways to pay for college these days. But

600
00:26:53,000 --> 00:26:55,239
Speaker 1: it really is an incredible gift and you're setting her

601
00:26:55,320 --> 00:26:58,400
Speaker 1: up for success. So big kudos to you on that front.

602
00:26:58,440 --> 00:27:00,119
Speaker 2: Well, Joe, this begs the question did you do you

603
00:27:00,119 --> 00:27:02,119
Speaker 2: ever study abroad? I think I know the answer to this,

604
00:27:02,240 --> 00:27:06,439
Speaker 2: but gives you an opportunity to talk about your college experience. No, No,

605
00:27:06,520 --> 00:27:08,280
Speaker 2: I did not. Yeah, I mean either, I went on

606
00:27:08,760 --> 00:27:11,560
Speaker 2: I get three month road trip around the country after college,

607
00:27:11,600 --> 00:27:14,119
Speaker 2: but felt like you're studying abroad out there on the

608
00:27:14,359 --> 00:27:16,920
Speaker 2: West coast right the Grand Canyon felt like a foreign country.

609
00:27:16,960 --> 00:27:19,480
Speaker 2: You weren't studying during that trip. You were learning other things.

610
00:27:19,480 --> 00:27:22,359
Speaker 2: That's right, that's right, learning about life. Matt. Yeah, I

611
00:27:22,720 --> 00:27:24,720
Speaker 2: didn't either, but I wish I had me too. Well.

612
00:27:24,760 --> 00:27:27,480
Speaker 2: I backpacked so one summer. It wasn't like for the

613
00:27:27,520 --> 00:27:29,600
Speaker 2: whole summer. It was just for like two weeks, I think.

614
00:27:29,640 --> 00:27:32,960
Speaker 2: But me and some friends we backpacked Italy on a

615
00:27:33,000 --> 00:27:36,760
Speaker 2: shoe string, crazy shoe string budget, sleeping in train stations

616
00:27:36,800 --> 00:27:39,400
Speaker 2: and tunnels under tracks like that kind of thing. Yeah,

617
00:27:39,400 --> 00:27:42,480
Speaker 2: true vagabond lifestyle. Oh my gosh. Yeah, in retrospect, I'm

618
00:27:42,520 --> 00:27:44,920
Speaker 2: not entirely sure how we survived. But on the other hand,

619
00:27:45,359 --> 00:27:48,359
Speaker 2: that's how we lived back in the day. Like you know, Well,

620
00:27:48,359 --> 00:27:49,600
Speaker 2: I also think it's one of those things we take

621
00:27:49,640 --> 00:27:51,679
Speaker 2: less risks today, I guess is maybe what I'm realizing

622
00:27:51,720 --> 00:27:53,160
Speaker 2: it's also one of those things you can get away

623
00:27:53,160 --> 00:27:54,800
Speaker 2: with when you're late teens, early twenties.

624
00:27:54,880 --> 00:27:56,640
Speaker 1: Yeah, you can never get away within any other point

625
00:27:56,640 --> 00:27:57,879
Speaker 1: in your life. And I think the same thing is

626
00:27:57,920 --> 00:28:01,920
Speaker 1: true of like my little trip in han a court

627
00:28:01,920 --> 00:28:04,040
Speaker 1: station where I get around the country. It would be

628
00:28:04,080 --> 00:28:06,560
Speaker 1: tough to pull off these days, but not agree just

629
00:28:06,560 --> 00:28:08,199
Speaker 1: for a person of my age, Well, this is what

630
00:28:08,240 --> 00:28:10,160
Speaker 1: I mean. Yeah, I think younger folks would probably still

631
00:28:10,160 --> 00:28:11,640
Speaker 1: get away with it, and I think they are still

632
00:28:11,640 --> 00:28:14,119
Speaker 1: doing it. Yeah, yeah, which is more power to them.

633
00:28:14,280 --> 00:28:17,280
Speaker 1: And let's talk about actually paying for this study abroad program.

634
00:28:17,480 --> 00:28:19,960
Speaker 1: I would suggest this first look around for free money.

635
00:28:20,040 --> 00:28:22,560
Speaker 1: Free money is always better than you know, your own money,

636
00:28:22,600 --> 00:28:23,360
Speaker 1: spending your own money.

637
00:28:23,480 --> 00:28:26,040
Speaker 2: I'll start there before we start talking about second a loan.

638
00:28:26,119 --> 00:28:29,399
Speaker 1: Right exactly. So we've talked about scholarships on the show before.

639
00:28:29,400 --> 00:28:33,160
Speaker 1: Most recently we talked about getting scholarships with Joscelyn Pearson

640
00:28:33,200 --> 00:28:36,040
Speaker 1: on episode eight sixty of the podcast. And there's just

641
00:28:36,160 --> 00:28:38,280
Speaker 1: no reason not to look for scholarships. Even at this

642
00:28:38,280 --> 00:28:40,000
Speaker 1: point in the game. You might say, but this is

643
00:28:40,040 --> 00:28:42,520
Speaker 1: like the last semester or this is the last expense

644
00:28:42,560 --> 00:28:44,880
Speaker 1: we're gonna face, I don't want to do the scholarship thing,

645
00:28:44,920 --> 00:28:47,240
Speaker 1: and I would say that would be short sighted. You

646
00:28:47,280 --> 00:28:49,760
Speaker 1: should go look for scholarships and try to find things

647
00:28:49,800 --> 00:28:51,600
Speaker 1: they're gonna meet. They're gonna be able to meet your

648
00:28:51,640 --> 00:28:55,680
Speaker 1: need because the ROI of spending some time in that

649
00:28:55,840 --> 00:28:58,880
Speaker 1: endeavor it can be significant. Don't assume that you have

650
00:28:58,920 --> 00:29:00,400
Speaker 1: to pay cash or that you have have to take

651
00:29:00,440 --> 00:29:03,680
Speaker 1: out a loan. And in particular, check out. There's actually

652
00:29:03,680 --> 00:29:07,520
Speaker 1: a government website Study Abroad dot state dot gov. If

653
00:29:07,560 --> 00:29:10,000
Speaker 1: you go there, you're gonna find a lot of helpful resources,

654
00:29:10,040 --> 00:29:14,480
Speaker 1: including links to specific scholarships for people who are going

655
00:29:14,520 --> 00:29:17,120
Speaker 1: to study abroad. And I just think, like Matt, that

656
00:29:17,160 --> 00:29:21,520
Speaker 1: website it's dedicated to Megan and her daughter's needs. Here,

657
00:29:22,320 --> 00:29:23,800
Speaker 1: I would not leave that stone unturned.

658
00:29:23,840 --> 00:29:25,560
Speaker 2: Do They also tell you how to like wear the

659
00:29:25,600 --> 00:29:27,920
Speaker 2: faint pack on the front under your pants, So that's

660
00:29:27,960 --> 00:29:30,840
Speaker 2: tonight I probably do bugged yea or the money wain

661
00:29:31,000 --> 00:29:34,160
Speaker 2: like advice under your shirt, like the kevlar string or

662
00:29:34,200 --> 00:29:38,160
Speaker 2: something like that. Actually, foreign countries often incentivize US students

663
00:29:38,160 --> 00:29:40,000
Speaker 2: to come over for a period of time, and so

664
00:29:40,040 --> 00:29:42,880
Speaker 2: you might find that you qualify for money when you

665
00:29:42,880 --> 00:29:47,560
Speaker 2: click on financial resources there on that site. Specifically, look

666
00:29:47,600 --> 00:29:50,680
Speaker 2: to the Gilman Scholarship, which can land her like anywhere

667
00:29:50,720 --> 00:29:54,040
Speaker 2: between five and eight thousand dollars in funds that don't

668
00:29:54,040 --> 00:29:54,960
Speaker 2: need to be paid back.

669
00:29:55,080 --> 00:29:57,400
Speaker 1: My favorite kind of money. What money that doesn't need

670
00:29:57,440 --> 00:29:58,680
Speaker 1: to be paid back. It's awesome.

671
00:29:59,040 --> 00:30:01,880
Speaker 2: So hopefully you're able to the pay for all, or

672
00:30:01,880 --> 00:30:03,600
Speaker 2: at least most of the trip by finding some of

673
00:30:03,640 --> 00:30:07,600
Speaker 2: these generous travel abroad programs and scholarships. In that way,

674
00:30:07,640 --> 00:30:11,840
Speaker 2: she can still graduate debt free while also having this

675
00:30:11,880 --> 00:30:12,800
Speaker 2: invaluable experience.

676
00:30:12,920 --> 00:30:16,280
Speaker 1: Yeah, like, I think the experience is probably worth paying

677
00:30:16,320 --> 00:30:19,000
Speaker 1: for if you have to, But the goal is to

678
00:30:19,040 --> 00:30:20,920
Speaker 1: not have to man, not even have right, The goal

679
00:30:20,920 --> 00:30:23,160
Speaker 1: is to get the experience without being out the money.

680
00:30:24,000 --> 00:30:26,120
Speaker 1: And because the truth is there might be additional money

681
00:30:26,120 --> 00:30:28,160
Speaker 1: that's required out of your own pocket or out of

682
00:30:28,200 --> 00:30:30,040
Speaker 1: your daughter's pocket. And I do want to say, you

683
00:30:30,120 --> 00:30:31,920
Speaker 1: might want her to pay for some of this, don't

684
00:30:31,920 --> 00:30:34,440
Speaker 1: assume that it's on you, Yes, exactly, I mean, especially

685
00:30:34,480 --> 00:30:36,520
Speaker 1: while she's a senior. And so this is like the

686
00:30:36,520 --> 00:30:39,520
Speaker 1: perfect time for her to on ramp into adulthood. You know,

687
00:30:39,560 --> 00:30:41,880
Speaker 1: It's one thing at the beginning of the school year,

688
00:30:41,880 --> 00:30:43,640
Speaker 1: but like, the whole point is to be able to

689
00:30:43,640 --> 00:30:46,680
Speaker 1: successfully launch a young person out into the world, and

690
00:30:46,720 --> 00:30:48,480
Speaker 1: so may what better way than to take on some

691
00:30:48,480 --> 00:30:50,800
Speaker 1: of these financial responsibilities. Is like, she's about to be

692
00:30:50,880 --> 00:30:53,640
Speaker 1: a full blown adult, right, right, So why not if

693
00:30:53,640 --> 00:30:55,520
Speaker 1: she's not going to do the legwork to find some

694
00:30:55,560 --> 00:30:58,520
Speaker 1: of the scholarships, at least be the one who does

695
00:30:58,560 --> 00:31:00,680
Speaker 1: have to take out the loans if necessary. Exactly, Yeah,

696
00:31:00,680 --> 00:31:03,360
Speaker 1: And I think it's also it's worth pointing out you

697
00:31:03,440 --> 00:31:05,480
Speaker 1: might need to or they might be the best option

698
00:31:05,560 --> 00:31:07,640
Speaker 1: to take out a little bit of student loan debt

699
00:31:07,640 --> 00:31:10,360
Speaker 1: in order to cover the cost. Graduating with zero debt

700
00:31:10,480 --> 00:31:12,920
Speaker 1: is the ideal, but taking on a little bit in

701
00:31:12,960 --> 00:31:15,960
Speaker 1: her senior year for this program it seems reasonable too.

702
00:31:16,320 --> 00:31:17,040
Speaker 2: And if there is.

703
00:31:17,120 --> 00:31:19,480
Speaker 1: Financial need that your family has, you could apply for

704
00:31:19,480 --> 00:31:21,680
Speaker 1: a PEL grant right, maybe to pay for that study

705
00:31:21,680 --> 00:31:24,880
Speaker 1: abroad program as well. I think the other thing, Matt,

706
00:31:24,880 --> 00:31:27,240
Speaker 1: that I would look into, I would just I would

707
00:31:27,240 --> 00:31:30,800
Speaker 1: start poking around at the financial aid office at her school.

708
00:31:31,320 --> 00:31:33,200
Speaker 1: I would have her call that don't do this yourself.

709
00:31:33,240 --> 00:31:35,440
Speaker 1: I would have your daughter call or visit the office

710
00:31:35,440 --> 00:31:38,080
Speaker 1: in person to see what funds might be available for

711
00:31:38,240 --> 00:31:41,040
Speaker 1: like a semester abroad. I guarantee you they have had

712
00:31:41,040 --> 00:31:43,200
Speaker 1: this question one hundred times over. You're not the first

713
00:31:43,200 --> 00:31:46,120
Speaker 1: person asking, and you just never know what's available until

714
00:31:46,160 --> 00:31:48,360
Speaker 1: you ask. You might find you're literally talking to the

715
00:31:48,400 --> 00:31:51,560
Speaker 1: people who deal in this twenty four to seven. They eat, sleep,

716
00:31:51,560 --> 00:31:54,160
Speaker 1: and breathe money for college. So I would go talk

717
00:31:54,200 --> 00:31:56,640
Speaker 1: to the experts in the financial aid office and you

718
00:31:56,720 --> 00:31:59,360
Speaker 1: might find that they have resources, that they have suggestions

719
00:31:59,520 --> 00:32:00,600
Speaker 1: that you have thought of yet.

720
00:32:00,720 --> 00:32:02,200
Speaker 2: Yeah, and I will say, this does sound like an

721
00:32:02,240 --> 00:32:04,760
Speaker 2: amazing program, and so we don't want to discourage what

722
00:32:04,920 --> 00:32:08,760
Speaker 2: sounds like an amazing experience. We want you to find

723
00:32:08,760 --> 00:32:10,920
Speaker 2: all that free money. But if you can't find any,

724
00:32:11,080 --> 00:32:13,040
Speaker 2: the last resort would be to take out a federal

725
00:32:13,080 --> 00:32:16,200
Speaker 2: student loan for the amount that's needed. You can typically

726
00:32:16,240 --> 00:32:18,600
Speaker 2: get a loan for the study abroad program. And if

727
00:32:18,600 --> 00:32:21,720
Speaker 2: you can't, that's when this is like the very very

728
00:32:21,800 --> 00:32:25,320
Speaker 2: last resort, a private student loan. It might become a necessity.

729
00:32:25,960 --> 00:32:28,840
Speaker 2: Certainly not our favorite, but you should likely be borrowing

730
00:32:29,240 --> 00:32:31,440
Speaker 2: like a pretty dang small amount. Right like we're just

731
00:32:31,480 --> 00:32:33,320
Speaker 2: talking about it sounds like this is is this her

732
00:32:33,520 --> 00:32:37,000
Speaker 2: actual final semester? We're talking about four months of living

733
00:32:37,000 --> 00:32:38,200
Speaker 2: and studying in a different country.

734
00:32:38,320 --> 00:32:40,240
Speaker 1: And I think our answer to this question would potentially

735
00:32:40,320 --> 00:32:42,280
Speaker 1: be a little bit different if she was calling in,

736
00:32:42,360 --> 00:32:44,160
Speaker 1: if Megan was calling in and saying it already.

737
00:32:43,880 --> 00:32:44,840
Speaker 2: Had bowloads of students.

738
00:32:44,880 --> 00:32:46,720
Speaker 1: Yeah, my daughter's already got one hundred and twenty thousand

739
00:32:46,720 --> 00:32:47,440
Speaker 1: dollars a student loan.

740
00:32:47,560 --> 00:32:48,880
Speaker 2: She's in a great position. Yeah.

741
00:32:48,960 --> 00:32:50,880
Speaker 1: Yeah, but the fact that she has no student loan

742
00:32:50,920 --> 00:32:52,960
Speaker 1: debt means there's a lot of flexibility here. And I

743
00:32:52,960 --> 00:32:56,240
Speaker 1: think that you can prioritize the experience, even though I

744
00:32:56,240 --> 00:32:58,920
Speaker 1: think there are ways to get it to cost less

745
00:32:58,920 --> 00:33:01,680
Speaker 1: out of less money to pocket, I think you can

746
00:33:01,720 --> 00:33:03,480
Speaker 1: prioritize the experience over the money on this one.

747
00:33:03,520 --> 00:33:05,800
Speaker 2: Yeah, because there's a there's a there's a quickly closing

748
00:33:05,880 --> 00:33:07,479
Speaker 2: window sort of like she was saying as far as

749
00:33:07,520 --> 00:33:09,920
Speaker 2: like the application deadlines, like, but not just on this

750
00:33:10,040 --> 00:33:12,680
Speaker 2: specific program, but in life, like right now is the

751
00:33:12,720 --> 00:33:14,280
Speaker 2: time that she has to be able to go on

752
00:33:14,280 --> 00:33:15,960
Speaker 2: this trip, sort of like when you were younger, that's

753
00:33:15,960 --> 00:33:17,800
Speaker 2: when you had the opportunity to go on that road

754
00:33:17,800 --> 00:33:19,520
Speaker 2: trip and sleep in the back of your Honda right

755
00:33:19,720 --> 00:33:22,600
Speaker 2: the Honda station wag or whatever, or like sleeping underneath

756
00:33:22,640 --> 00:33:26,200
Speaker 2: train tracks in Milan, Italy, which probably would not ever

757
00:33:26,240 --> 00:33:29,920
Speaker 2: be advisable to anybody that was it was the very

758
00:33:29,960 --> 00:33:31,920
Speaker 2: small period of time where I was able to do that.

759
00:33:32,080 --> 00:33:33,720
Speaker 2: And if we keep going down this track, I feel

760
00:33:33,720 --> 00:33:35,160
Speaker 2: like we're gonna it's gonna turn into sort of like

761
00:33:35,280 --> 00:33:38,840
Speaker 2: some sort of yolo mentality. But it's important to keep

762
00:33:38,840 --> 00:33:41,640
Speaker 2: in mind though, that we see the potential here for

763
00:33:41,680 --> 00:33:44,160
Speaker 2: this for her to receive just like an outsize return

764
00:33:44,240 --> 00:33:48,040
Speaker 2: from this experience that vastly outweighs what she might be

765
00:33:48,040 --> 00:33:50,400
Speaker 2: taking on in student loans, even private student loans.

766
00:33:50,440 --> 00:33:52,800
Speaker 1: So I just had a conversation with my wife family

767
00:33:52,840 --> 00:33:58,320
Speaker 1: with her stepmom, and her stepmom's daughter recently graduated, got

768
00:33:58,320 --> 00:34:00,920
Speaker 1: a job and is saying she's saying, I, actually, I

769
00:34:00,920 --> 00:34:02,640
Speaker 1: think I'm gonna quit. I think we're going to travel

770
00:34:02,640 --> 00:34:05,880
Speaker 1: abroad for a while. And the stepmam asked me, She's like,

771
00:34:05,920 --> 00:34:07,720
Speaker 1: you're going to tell her this is a bad idea, right,

772
00:34:08,280 --> 00:34:10,080
Speaker 1: You're going to tell her that that this is going

773
00:34:10,160 --> 00:34:12,920
Speaker 1: to cost her money and think about the four oh

774
00:34:12,920 --> 00:34:13,520
Speaker 1: one K and the.

775
00:34:13,560 --> 00:34:15,600
Speaker 2: Think, like an economist, the opportunity cost Joel.

776
00:34:15,640 --> 00:34:18,000
Speaker 1: And it's funny because I'm thinking back to those three

777
00:34:18,000 --> 00:34:20,480
Speaker 1: months that I took off, literally quitting my first job

778
00:34:20,520 --> 00:34:22,240
Speaker 1: in order to take that trip, and I'm.

779
00:34:22,120 --> 00:34:22,680
Speaker 2: So glad it did.

780
00:34:22,760 --> 00:34:25,080
Speaker 1: Like I have zero regret since I was like, sorry, sorry,

781
00:34:25,080 --> 00:34:27,359
Speaker 1: I don't have your back on this one. Your daughter

782
00:34:27,400 --> 00:34:30,000
Speaker 1: should quit, she should go pursue this opportunity, taking a

783
00:34:30,040 --> 00:34:31,960
Speaker 1: few months off to go get an experience like this.

784
00:34:32,320 --> 00:34:33,080
Speaker 1: It's life changing.

785
00:34:33,160 --> 00:34:35,399
Speaker 2: So the jobs will still be there, and of course

786
00:34:35,400 --> 00:34:37,720
Speaker 2: the student loans will still be there, but the ability

787
00:34:37,719 --> 00:34:39,640
Speaker 2: for her to keep that to a minimum. I think

788
00:34:39,680 --> 00:34:42,200
Speaker 2: she has the ability to quickly pay that off as

789
00:34:42,280 --> 00:34:45,560
Speaker 2: quickly as possible once she's back erunning a paycheck, and

790
00:34:45,719 --> 00:34:49,759
Speaker 2: has also had her worldview completely shifted from what she's

791
00:34:49,760 --> 00:34:51,080
Speaker 2: had up until this point, no doubt.

792
00:34:51,200 --> 00:34:53,200
Speaker 1: All Right, man, We've got more to get to on

793
00:34:53,560 --> 00:34:55,680
Speaker 1: this episode, including we're going to take a frugal or

794
00:34:55,760 --> 00:34:59,319
Speaker 1: cheap and a question about canceling credit cards you don't

795
00:34:59,400 --> 00:35:09,600
Speaker 1: use anymore to that more right after this, All right, chel.

796
00:35:09,520 --> 00:35:11,360
Speaker 2: We are back from the break that's I'm going to

797
00:35:11,400 --> 00:35:14,319
Speaker 2: land this plane, this how to Money episode, this ask

798
00:35:14,400 --> 00:35:16,480
Speaker 2: how to Money episode, didn't realize we're a flying Matt.

799
00:35:16,520 --> 00:35:18,520
Speaker 2: But it is now time for the Facebook question of

800
00:35:18,560 --> 00:35:21,480
Speaker 2: the Week, which is from Brandon who has a frugal

801
00:35:21,560 --> 00:35:23,600
Speaker 2: or cheap and he wrote, I was in a used

802
00:35:23,600 --> 00:35:27,120
Speaker 2: bookstore yesterday and I found one book I wanted, but

803
00:35:27,200 --> 00:35:29,960
Speaker 2: rather than immediately buy it, I looked up the audiobook

804
00:35:30,040 --> 00:35:33,440
Speaker 2: on Spotify to listen to later. We did buy some

805
00:35:33,480 --> 00:35:37,560
Speaker 2: other stuff from that store before leaving. Joel, is this

806
00:35:37,600 --> 00:35:39,319
Speaker 2: a frugal or cheap? What do you think? I think

807
00:35:39,360 --> 00:35:40,759
Speaker 2: it's frugal. Yeah, yeah, I.

808
00:35:40,680 --> 00:35:44,080
Speaker 1: Love used bookstores, by the way, and that's actually the

809
00:35:44,120 --> 00:35:46,200
Speaker 1: prize I dangle in front of my daughters if they

810
00:35:46,239 --> 00:35:48,680
Speaker 1: get one hundred on their spelling tests, they get a

811
00:35:48,680 --> 00:35:51,799
Speaker 1: free used book of their choosing. And so I think

812
00:35:51,880 --> 00:35:52,239
Speaker 1: use books.

813
00:35:52,480 --> 00:35:54,200
Speaker 2: But do you actually go to a used bookstore to

814
00:35:54,200 --> 00:35:55,359
Speaker 2: buy the book? Yeah?

815
00:35:55,360 --> 00:35:57,680
Speaker 1: For sure, Oh yeah, because my kids love physical books.

816
00:35:57,719 --> 00:36:01,520
Speaker 1: I'm more of an audiobook guy, but I still, I mean,

817
00:36:01,560 --> 00:36:03,560
Speaker 1: I still buy used books on occasion. There's some books

818
00:36:03,560 --> 00:36:07,359
Speaker 1: I like to actually own. Yeah, very rarely to almost never.

819
00:36:07,440 --> 00:36:10,400
Speaker 1: Do I actually buy new books though, Oh yeah, definitely.

820
00:36:10,880 --> 00:36:13,200
Speaker 2: Honestly, I don't even like used like physic I'm sorry,

821
00:36:13,200 --> 00:36:16,680
Speaker 2: not physical books. So for me, like if I had

822
00:36:16,680 --> 00:36:20,000
Speaker 2: to rate my top choice, it's audiobooks all the way.

823
00:36:20,080 --> 00:36:22,720
Speaker 2: But then after that, not too far down are e books.

824
00:36:22,800 --> 00:36:25,520
Speaker 2: The ability for me to bust out my kindle paper white.

825
00:36:25,960 --> 00:36:27,719
Speaker 2: It's so great. Yeah, it's so good because if you

826
00:36:27,840 --> 00:36:30,120
Speaker 2: like holding something, okay, well you just hold this little

827
00:36:30,160 --> 00:36:33,040
Speaker 2: frame and then all you gotta do when you want

828
00:36:33,040 --> 00:36:34,799
Speaker 2: to advance the page is you just kind of roll

829
00:36:34,880 --> 00:36:36,680
Speaker 2: that thumb onto the screen and you just put some

830
00:36:36,719 --> 00:36:39,360
Speaker 2: pressure there on and it boot goes to the next page.

831
00:36:40,080 --> 00:36:41,840
Speaker 2: I still like books over. I don't know if you

832
00:36:41,880 --> 00:36:43,319
Speaker 2: knew this will. I have dry skin and so I

833
00:36:43,320 --> 00:36:45,759
Speaker 2: would dry fingers and I always have to lick my

834
00:36:45,760 --> 00:36:48,279
Speaker 2: finger to grab the page to be able to turn it.

835
00:36:48,280 --> 00:36:50,320
Speaker 2: That must be hard. It's annoying. Yeah, and so I

836
00:36:50,840 --> 00:36:53,400
Speaker 2: literally don't like physical books for that reason.

837
00:36:54,600 --> 00:36:57,160
Speaker 1: That will thank you for that insight into your reading habits.

838
00:36:57,719 --> 00:37:00,920
Speaker 1: I also like audiobooks, but I prefer physical book second

839
00:37:01,400 --> 00:37:02,280
Speaker 1: ebooks last.

840
00:37:02,400 --> 00:37:04,359
Speaker 2: So for you, like when you take the girls, it's

841
00:37:04,440 --> 00:37:06,239
Speaker 2: it's like the whole event. It's the fact that you're

842
00:37:06,280 --> 00:37:08,800
Speaker 2: going somewhere. It's like an activity, it's an outing.

843
00:37:08,880 --> 00:37:11,719
Speaker 1: And then and then for them, I think it feels like, oh,

844
00:37:11,760 --> 00:37:13,200
Speaker 1: I'm getting the book I want, and I get to

845
00:37:13,200 --> 00:37:15,000
Speaker 1: hold it and read it. And my daughter like literally

846
00:37:15,000 --> 00:37:16,719
Speaker 1: every morning I go wake her up one of them,

847
00:37:16,760 --> 00:37:19,279
Speaker 1: at least she's in her bed reading already, and so

848
00:37:19,760 --> 00:37:21,360
Speaker 1: I want to incentivize that too. That's one of the

849
00:37:21,360 --> 00:37:22,240
Speaker 1: great times you can.

850
00:37:22,080 --> 00:37:26,280
Speaker 2: Incentivizeh one hundred percent, Like, yeah, we are all about reading.

851
00:37:26,360 --> 00:37:27,920
Speaker 2: Do y'all not use the library?

852
00:37:28,120 --> 00:37:30,239
Speaker 1: Because yeah, because I feel like we but there's something

853
00:37:30,440 --> 00:37:32,360
Speaker 1: they read over and over, like the roll Doll books

854
00:37:32,400 --> 00:37:34,200
Speaker 1: come on, like we're gonna read those one hundred times.

855
00:37:34,200 --> 00:37:36,800
Speaker 2: There are certain classics, but like for those, I honestly

856
00:37:37,040 --> 00:37:39,800
Speaker 2: like there are certain series and classics where we've purchased

857
00:37:39,840 --> 00:37:42,239
Speaker 2: because it's like, Okay, we want our own copy, and

858
00:37:42,360 --> 00:37:44,360
Speaker 2: all the kids are going to read through these multiple times.

859
00:37:44,400 --> 00:37:47,759
Speaker 2: But the vast majority of reading that they're doing it's

860
00:37:47,840 --> 00:37:49,719
Speaker 2: via books that they've checked out from the library. And like,

861
00:37:49,760 --> 00:37:51,520
Speaker 2: I mean we go week like literally Kate goes every

862
00:37:51,560 --> 00:37:53,680
Speaker 2: single week, and I think we've talked about how we've

863
00:37:53,680 --> 00:37:56,359
Speaker 2: got like the maximum number of books that they will

864
00:37:56,360 --> 00:37:58,279
Speaker 2: allow you to check out. I'm not going to shift

865
00:37:58,320 --> 00:38:00,239
Speaker 2: the conversation to talking about taxes, but if you're going

866
00:38:00,239 --> 00:38:01,880
Speaker 2: to pay these taxes, it's like may as well, be

867
00:38:01,920 --> 00:38:04,600
Speaker 2: a benefit, take advantage, take advantage of it. And we're

868
00:38:04,800 --> 00:38:07,840
Speaker 2: certainly super users when it comes to utilizing our local

869
00:38:08,000 --> 00:38:08,680
Speaker 2: public library.

870
00:38:08,680 --> 00:38:09,920
Speaker 1: So I think we should get back to a brandon

871
00:38:09,960 --> 00:38:11,680
Speaker 1: ass and I do think it's frugal to go into

872
00:38:11,760 --> 00:38:13,919
Speaker 1: your news books for he said he bought some things,

873
00:38:13,920 --> 00:38:15,600
Speaker 1: so it's not like he's literally just going in there

874
00:38:15,600 --> 00:38:17,760
Speaker 1: to find titles that he can add to a Spotify playlist.

875
00:38:18,239 --> 00:38:20,879
Speaker 2: The other thing worth actually is that why got it?

876
00:38:21,160 --> 00:38:22,960
Speaker 2: I don't think I realized. So he was saying he's

877
00:38:23,000 --> 00:38:25,480
Speaker 2: afraid that he was going into the actual store to

878
00:38:25,640 --> 00:38:28,560
Speaker 2: like get ideas for books, and then he then but

879
00:38:28,640 --> 00:38:29,359
Speaker 2: he was doing both.

880
00:38:29,440 --> 00:38:30,719
Speaker 1: He was giving both, and he and he got a

881
00:38:30,719 --> 00:38:32,680
Speaker 1: couple audiobooks based on stuff he saw in the store.

882
00:38:32,719 --> 00:38:34,359
Speaker 1: But then he also bought a couple of things too.

883
00:38:34,719 --> 00:38:37,000
Speaker 1: And it's worth mentioning as well that if you are

884
00:38:37,000 --> 00:38:40,000
Speaker 1: into audiobooks, Spotify actually has a pretty good product on

885
00:38:40,040 --> 00:38:43,680
Speaker 1: that front, finally, a legit competitor to Audible. You're big

886
00:38:43,719 --> 00:38:45,600
Speaker 1: on the Spotify previews, Yeah, I mean I did it

887
00:38:45,640 --> 00:38:48,359
Speaker 1: for a while. I haven't done it lately, but I

888
00:38:48,400 --> 00:38:51,920
Speaker 1: would do it again. It's they basically be fifteen hours

889
00:38:51,960 --> 00:38:54,920
Speaker 1: worth of listening time. They've got a pretty good selection

890
00:38:54,920 --> 00:39:00,080
Speaker 1: of audiobooks, not quite as as substantial as Audible, but

891
00:39:00,080 --> 00:39:02,279
Speaker 1: it still really dang good. So I think it's a

892
00:39:02,320 --> 00:39:04,600
Speaker 1: good compliment to the free books you can get on

893
00:39:04,640 --> 00:39:06,960
Speaker 1: the Libby app and to the books. Maybe you might

894
00:39:06,960 --> 00:39:07,840
Speaker 1: buy the used books for.

895
00:39:08,000 --> 00:39:12,080
Speaker 2: Yeah, Okay, I don't think I totally understood his question initially,

896
00:39:12,400 --> 00:39:14,839
Speaker 2: So so the way he's asking it basically is sort

897
00:39:14,840 --> 00:39:16,919
Speaker 2: of is equivalent to saying, Hey, would you go into

898
00:39:16,960 --> 00:39:20,200
Speaker 2: a store to try on a jacket to get sized

899
00:39:20,480 --> 00:39:22,960
Speaker 2: and then buy that same jacket online something like that

900
00:39:23,000 --> 00:39:25,040
Speaker 2: from an online retailer at a much diskind of price,

901
00:39:25,840 --> 00:39:27,920
Speaker 2: And so he's saying that because of the fact that

902
00:39:27,960 --> 00:39:30,759
Speaker 2: you purchased something else, it's not cheap, it's frugal. Yeah,

903
00:39:30,760 --> 00:39:32,759
Speaker 2: that's what he's saying. Yeah, well, I mean I think

904
00:39:32,800 --> 00:39:35,360
Speaker 2: even even if you were to do that, like stores

905
00:39:35,440 --> 00:39:38,279
Speaker 2: know that that is an inherent part of coming into

906
00:39:38,320 --> 00:39:41,200
Speaker 2: the store, like the get you in other ways, like

907
00:39:41,239 --> 00:39:43,759
Speaker 2: I'm thinking of the point of sale purchases, like the

908
00:39:43,840 --> 00:39:47,280
Speaker 2: cands or there's something on clearance, and so you're like, oh, shoot,

909
00:39:47,320 --> 00:39:49,440
Speaker 2: maybe I'll go ahead and make that happen. Like, you know,

910
00:39:49,680 --> 00:39:51,880
Speaker 2: like there are other ways that stores get you, and

911
00:39:51,960 --> 00:39:55,879
Speaker 2: I think, I don't know, I'm not just I'm not saying, hey,

912
00:39:55,920 --> 00:39:58,839
Speaker 2: go into all your local brick and mortars and try

913
00:39:58,840 --> 00:40:01,160
Speaker 2: on shoes and then go online and to see if

914
00:40:01,160 --> 00:40:03,120
Speaker 2: you can find the same pair of shoes used. But

915
00:40:03,280 --> 00:40:06,560
Speaker 2: I also think that there are ways that stores sort

916
00:40:06,600 --> 00:40:08,400
Speaker 2: of account for the fact that there are folks who

917
00:40:08,440 --> 00:40:10,759
Speaker 2: are just coming in. They're sort of window shopping, but

918
00:40:10,760 --> 00:40:12,480
Speaker 2: they're hoping to kind of get your their hooks in

919
00:40:12,520 --> 00:40:13,759
Speaker 2: you in in like a different way.

920
00:40:13,840 --> 00:40:16,560
Speaker 1: Yeah, I think, especially though, on those small businesses that

921
00:40:16,600 --> 00:40:18,600
Speaker 1: are like pillars of your community, the stores that you

922
00:40:18,640 --> 00:40:20,800
Speaker 1: want to see exist.

923
00:40:20,560 --> 00:40:21,839
Speaker 2: Support them one hundred percent.

924
00:40:21,960 --> 00:40:24,919
Speaker 1: And so if yeah, especially like a used bookstore, they're

925
00:40:24,920 --> 00:40:27,680
Speaker 1: not breaking in cash, I'm pretty sure, but they are

926
00:40:28,280 --> 00:40:31,040
Speaker 1: like fantastic places that I'm so glad they exist. And

927
00:40:31,160 --> 00:40:34,320
Speaker 1: I would rather spend some extra money at my local

928
00:40:34,400 --> 00:40:37,600
Speaker 1: used bookstore just in hopes that it stays open for

929
00:40:38,040 --> 00:40:40,680
Speaker 1: many more years to come, instead of cheaping out than

930
00:40:40,880 --> 00:40:42,560
Speaker 1: save and fifty cents by buying it on eBay or

931
00:40:42,560 --> 00:40:43,040
Speaker 1: something like that.

932
00:40:43,200 --> 00:40:44,600
Speaker 2: Yeah, I think it comes down to what it is

933
00:40:44,600 --> 00:40:46,000
Speaker 2: that you want to see in the community. It's sort

934
00:40:46,000 --> 00:40:48,600
Speaker 2: of I mean, there's a local establishment that opened near

935
00:40:48,640 --> 00:40:50,120
Speaker 2: a role and I was just like, I literally I am

936
00:40:50,080 --> 00:40:52,640
Speaker 2: thinking about creating a live item on my budget to

937
00:40:52,760 --> 00:40:54,799
Speaker 2: force myself to like I'm going to go there anyway, yeah,

938
00:40:54,800 --> 00:40:56,600
Speaker 2: but to sort of force myself to go there because

939
00:40:56,640 --> 00:40:59,000
Speaker 2: I want that business, this small business, to do well.

940
00:40:59,200 --> 00:41:01,160
Speaker 2: And so in a similar way, I think, yeah, putting

941
00:41:01,320 --> 00:41:04,160
Speaker 2: money towards the businesses you want to see succeed. And

942
00:41:04,239 --> 00:41:06,160
Speaker 2: even though I personally may not gain a whole lot

943
00:41:06,200 --> 00:41:11,439
Speaker 2: of utility out of a used independent bookstore, it's still

944
00:41:11,480 --> 00:41:13,520
Speaker 2: something I like the idea of it, and I want

945
00:41:13,520 --> 00:41:15,440
Speaker 2: it to be there, even if it's sort of like

946
00:41:15,480 --> 00:41:17,880
Speaker 2: this romantic idea of like, oh, being able to go

947
00:41:17,920 --> 00:41:19,839
Speaker 2: in there on a rainy day with get a cup

948
00:41:19,840 --> 00:41:22,200
Speaker 2: of coffee, and well, we're humans to a book.

949
00:41:22,239 --> 00:41:24,719
Speaker 1: We pay extra for great experiences, and rightly so, like

950
00:41:24,760 --> 00:41:27,319
Speaker 1: there are certain things that are worth The coffee might

951
00:41:27,360 --> 00:41:29,360
Speaker 1: be the same at one coffee shop versus another, but

952
00:41:29,400 --> 00:41:31,720
Speaker 1: I pay for the experience of a specific coffee shop maybe,

953
00:41:31,880 --> 00:41:34,840
Speaker 1: or the used bookstore, Like can I get it cheaper

954
00:41:34,960 --> 00:41:38,080
Speaker 1: on some sort of website on the internet, like an eBay?

955
00:41:38,400 --> 00:41:38,760
Speaker 2: Sure?

956
00:41:39,320 --> 00:41:42,320
Speaker 1: But there is something about the novelty and the joy

957
00:41:42,360 --> 00:41:45,239
Speaker 1: that comes from perusing your favorite used bookstore and the

958
00:41:45,280 --> 00:41:48,760
Speaker 1: serendipity of stumbling upon maybe something that you hadn't seen before.

959
00:41:49,000 --> 00:41:49,640
Speaker 2: That's pretty cool.

960
00:41:49,680 --> 00:41:52,520
Speaker 1: There's something really valuable about that, So I think, Yeah,

961
00:41:52,760 --> 00:41:56,080
Speaker 1: keep in mind those other intangible benefits that you get

962
00:41:56,280 --> 00:41:58,560
Speaker 1: from shopping at a store like that too.

963
00:41:58,719 --> 00:41:59,040
Speaker 2: I dig it.

964
00:41:59,080 --> 00:42:00,719
Speaker 1: All right, Let's get to our last question, Matt. This

965
00:42:00,719 --> 00:42:02,920
Speaker 1: is an email question from Linda. She says, how do

966
00:42:02,960 --> 00:42:05,360
Speaker 1: I cancel old credit cards that I have not used?

967
00:42:05,600 --> 00:42:08,040
Speaker 1: I have a FICO score of eight twenty six, but

968
00:42:08,120 --> 00:42:10,719
Speaker 1: I do not want to lower my score. I pay

969
00:42:10,760 --> 00:42:13,239
Speaker 1: off most of my cards unless I have interest free

970
00:42:13,320 --> 00:42:16,120
Speaker 1: terms eight twenty six. That's exactly what I have right now.

971
00:42:16,200 --> 00:42:18,160
Speaker 1: You guys, are I just checked with set of blood brothers.

972
00:42:18,200 --> 00:42:20,280
Speaker 1: You're like credit card homies or something.

973
00:42:20,320 --> 00:42:23,480
Speaker 2: All right, let's get to the logistics, like the mechanics here, Linda,

974
00:42:23,560 --> 00:42:25,640
Speaker 2: It's actually not that hard to cancel your credit card.

975
00:42:25,760 --> 00:42:27,879
Speaker 2: There is typically an eight hundred number on the back

976
00:42:27,920 --> 00:42:29,520
Speaker 2: of the card that you should be able to call,

977
00:42:30,000 --> 00:42:32,200
Speaker 2: or you just log into your account online and you

978
00:42:32,239 --> 00:42:35,040
Speaker 2: can cancel it that way. So there's the how do

979
00:42:35,080 --> 00:42:37,200
Speaker 2: you do it? So it's time not to get to

980
00:42:37,200 --> 00:42:39,080
Speaker 2: the part of the question that you weren't asking, which

981
00:42:39,120 --> 00:42:42,239
Speaker 2: is is something always my favorite part that you should do?

982
00:42:42,800 --> 00:42:46,239
Speaker 2: And I would say probably not. I get the maybe

983
00:42:46,239 --> 00:42:49,000
Speaker 2: you've got a desire to simplify your personal finances. You

984
00:42:49,040 --> 00:42:51,160
Speaker 2: want to clean things up, and so why not get

985
00:42:51,239 --> 00:42:54,000
Speaker 2: rid of an old card that you don't use anymore. Well,

986
00:42:54,200 --> 00:42:57,600
Speaker 2: the reason is because there are consequences in doing so.

987
00:42:57,719 --> 00:43:01,319
Speaker 1: Yeah, namely the drop in your credit score. And then

988
00:43:01,360 --> 00:43:03,080
Speaker 1: you and Matt would not get to exist on an

989
00:43:03,120 --> 00:43:06,200
Speaker 1: equal playing field anymore. He would now be above you,

990
00:43:06,280 --> 00:43:07,959
Speaker 1: he'd be at eight twenty six and you might be.

991
00:43:07,920 --> 00:43:09,279
Speaker 2: Stuck at the eight nineteen clubs.

992
00:43:09,320 --> 00:43:11,200
Speaker 1: So lemon, get an eight thirteen something like that. Right,

993
00:43:11,760 --> 00:43:14,040
Speaker 1: and closing your cards is going to have an impact

994
00:43:14,080 --> 00:43:16,600
Speaker 1: on multiple fronts. Right, you're talking about getting rid of

995
00:43:16,640 --> 00:43:19,359
Speaker 1: cards you've had for a long time. Those cards are

996
00:43:19,400 --> 00:43:21,560
Speaker 1: doing you a service on the credit score front. They're

997
00:43:21,880 --> 00:43:24,839
Speaker 1: lengthening your credit history, which is one factor in your

998
00:43:24,840 --> 00:43:28,359
Speaker 1: credit score. They're also increasing how much credit you have

999
00:43:28,560 --> 00:43:31,359
Speaker 1: available to you, which helps with what's known as your

1000
00:43:31,640 --> 00:43:35,160
Speaker 1: credit utilization rate. And that's one of the biggest factors right,

1001
00:43:35,160 --> 00:43:37,200
Speaker 1: that goes into your credit score. So there are these

1002
00:43:37,239 --> 00:43:40,520
Speaker 1: two major factors that you're dinging by canceling a couple

1003
00:43:40,520 --> 00:43:43,040
Speaker 1: of cards that you don't want to carry anymore. So

1004
00:43:43,320 --> 00:43:45,040
Speaker 1: if you get rid of a few of them, you

1005
00:43:45,080 --> 00:43:48,000
Speaker 1: could harm your score meaningfully. I mean, you're probably not

1006
00:43:48,080 --> 00:43:50,040
Speaker 1: going to drag it down to like seven to ten,

1007
00:43:50,760 --> 00:43:53,160
Speaker 1: but you know, but you could see a fifteen twenty

1008
00:43:53,160 --> 00:43:56,120
Speaker 1: thirty point ding depending on how many cards you close

1009
00:43:56,200 --> 00:43:58,319
Speaker 1: and kind of how they're impacting your score right now.

1010
00:43:58,440 --> 00:44:01,960
Speaker 2: Yeah, And one of the downsize to just completely ignoring

1011
00:44:02,000 --> 00:44:04,200
Speaker 2: the cars, the fact that they might that the card

1012
00:44:04,280 --> 00:44:07,120
Speaker 2: issuer would close it on you. And so a suggestion

1013
00:44:07,160 --> 00:44:09,040
Speaker 2: we might have is to put a recurring bill like

1014
00:44:09,040 --> 00:44:11,640
Speaker 2: something like Netflix on each one of those cards and

1015
00:44:11,680 --> 00:44:14,120
Speaker 2: then just have it automatically paid off every single month.

1016
00:44:14,120 --> 00:44:17,320
Speaker 2: And so basically, when you saw that card getting paid

1017
00:44:17,960 --> 00:44:20,680
Speaker 2: from your checking account, you would then begin to associate

1018
00:44:20,719 --> 00:44:24,399
Speaker 2: a certain card with that specific utility. Right. You don't

1019
00:44:24,440 --> 00:44:26,839
Speaker 2: have to actually lug those cards around with you, you don't

1020
00:44:26,880 --> 00:44:28,840
Speaker 2: have to carry them, but this will keep those cards

1021
00:44:28,880 --> 00:44:32,279
Speaker 2: alive and active and they will stay there in your

1022
00:44:32,280 --> 00:44:34,160
Speaker 2: credit mix, which is going to keep your score in

1023
00:44:34,200 --> 00:44:37,400
Speaker 2: that upper echelon, and I would say I think the

1024
00:44:37,400 --> 00:44:39,120
Speaker 2: main reason to close a card would be if you

1025
00:44:39,160 --> 00:44:42,120
Speaker 2: don't use it at all and it's got an annual fee.

1026
00:44:42,480 --> 00:44:45,160
Speaker 2: But even then you can just ask for a card downgrade,

1027
00:44:45,360 --> 00:44:48,239
Speaker 2: and so it's not something that you would necessarily need

1028
00:44:48,280 --> 00:44:52,319
Speaker 2: to completely get rid of. But also I am going

1029
00:44:52,320 --> 00:44:53,600
Speaker 2: to highlight the fact that you don't have to have

1030
00:44:53,640 --> 00:44:55,560
Speaker 2: a perfect credit score, right, like we were just joking

1031
00:44:55,600 --> 00:44:57,880
Speaker 2: about getting ding from an eight twenty six to eight

1032
00:44:58,000 --> 00:45:01,480
Speaker 2: nineteen oh or god forbid a thirteen. As long as

1033
00:45:01,520 --> 00:45:03,480
Speaker 2: you aren't getting taken all the way down to like

1034
00:45:03,520 --> 00:45:06,120
Speaker 2: the lower seven hundreds. I think it's in seven forty

1035
00:45:06,160 --> 00:45:08,200
Speaker 2: typically the lower limit, and as long as you are

1036
00:45:08,239 --> 00:45:10,719
Speaker 2: above seven forty, you're going to qualify for the best.

1037
00:45:10,520 --> 00:45:13,360
Speaker 1: Terms typically either seven forty or seven sixty is so

1038
00:45:13,400 --> 00:45:15,160
Speaker 1: if you're seven sixty plus you're good to go.

1039
00:45:15,320 --> 00:45:17,040
Speaker 2: So and you're in the eight hundreds, you are in

1040
00:45:17,160 --> 00:45:21,319
Speaker 2: great territory. But again I totally understand if you're just

1041
00:45:21,360 --> 00:45:23,200
Speaker 2: done with it and you don't want to mess with

1042
00:45:23,239 --> 00:45:25,000
Speaker 2: us anymore. It makes me think of We've got friends

1043
00:45:25,040 --> 00:45:27,440
Speaker 2: who have paid off mortgages, Joel, and they had lower

1044
00:45:27,480 --> 00:45:30,680
Speaker 2: interest rates on those mortgages. But for them personally, this

1045
00:45:30,800 --> 00:45:32,359
Speaker 2: is what they wanted in their life. And if that's

1046
00:45:32,360 --> 00:45:35,279
Speaker 2: the case, well it's not the most financially optimized thing

1047
00:45:35,320 --> 00:45:37,560
Speaker 2: to do, but I think it's totally within reason. If

1048
00:45:37,560 --> 00:45:39,400
Speaker 2: that's something that you wanted to do. That's a good

1049
00:45:39,440 --> 00:45:41,279
Speaker 2: way to put it. Personal finance. That's what it's all

1050
00:45:41,320 --> 00:45:41,759
Speaker 2: about here.

1051
00:45:41,880 --> 00:45:45,480
Speaker 1: Totally within reason to close those as long as you're

1052
00:45:45,520 --> 00:45:48,439
Speaker 1: doing it smartly and overtime so that you don't harm

1053
00:45:48,440 --> 00:45:51,920
Speaker 1: yourself too much and maybe cost yourself. If you're applying

1054
00:45:51,920 --> 00:45:54,319
Speaker 1: for a mortgage and you don't qualify for the best

1055
00:45:54,360 --> 00:45:56,680
Speaker 1: rate and best terms anymore, that would be really sad

1056
00:45:56,680 --> 00:45:58,640
Speaker 1: because that could cost you literally thousands of dollars. So

1057
00:45:58,960 --> 00:46:00,960
Speaker 1: if that's the case, you need to use your credit

1058
00:46:01,000 --> 00:46:03,560
Speaker 1: score for a significant purchase in the near future. Will

1059
00:46:03,560 --> 00:46:06,080
Speaker 1: hold off, don't do it yet. But if that's not

1060
00:46:06,160 --> 00:46:08,960
Speaker 1: the case, then your score will likely have time to recover,

1061
00:46:09,040 --> 00:46:11,279
Speaker 1: and so you can take this route if you really

1062
00:46:11,280 --> 00:46:13,920
Speaker 1: want to. All right, Matt, let's get back to the

1063
00:46:13,920 --> 00:46:16,080
Speaker 1: beer that we had on today's episode. This one is

1064
00:46:16,120 --> 00:46:20,040
Speaker 1: called Juice Quest. It's a hazy ipa by the good

1065
00:46:20,040 --> 00:46:21,400
Speaker 1: folks over at Scofflaw Brewing.

1066
00:46:21,400 --> 00:46:23,640
Speaker 2: What were your thoughts? Well, my first thoughts are at

1067
00:46:23,640 --> 00:46:25,920
Speaker 2: the top. It says be the main character, which I

1068
00:46:25,960 --> 00:46:28,520
Speaker 2: don't like that, like you'll start like inspirational me seeing

1069
00:46:28,560 --> 00:46:31,440
Speaker 2: like the main main character energy like on billboards or

1070
00:46:31,480 --> 00:46:32,080
Speaker 2: something like that.

1071
00:46:32,120 --> 00:46:34,600
Speaker 1: I don't love like inspiration from my breweries, like give

1072
00:46:34,640 --> 00:46:36,799
Speaker 1: me good beer. I don't necessarily need a pep talk.

1073
00:46:37,239 --> 00:46:39,759
Speaker 2: I will say the reason. It's got like an eight

1074
00:46:39,840 --> 00:46:43,000
Speaker 2: bit design motif going on, and so I understand, be

1075
00:46:43,080 --> 00:46:45,520
Speaker 2: the main character your journey starts now. It's got a

1076
00:46:45,600 --> 00:46:49,160
Speaker 2: very like Zelda like like quality to it. And when

1077
00:46:49,160 --> 00:46:50,960
Speaker 2: I think about that, it makes me think I should

1078
00:46:51,000 --> 00:46:53,560
Speaker 2: really like the branding. But I don't know. It's just

1079
00:46:53,719 --> 00:46:56,440
Speaker 2: not really resonating with me. But the actual beer in

1080
00:46:56,480 --> 00:46:59,640
Speaker 2: this case is definitely resonating with me. Man, this is

1081
00:46:59,680 --> 00:47:03,520
Speaker 2: like a classic hazy IPA super clean. Actually, you and

1082
00:47:03,560 --> 00:47:06,600
Speaker 2: I this is a beer that we enjoyed somewhat recently

1083
00:47:06,760 --> 00:47:10,440
Speaker 2: at a conference, and I was shocked at how tasty

1084
00:47:10,440 --> 00:47:12,319
Speaker 2: it was. It's the reason I went and picked up

1085
00:47:12,320 --> 00:47:15,120
Speaker 2: a six pack because Scotflaw they make some solid beers,

1086
00:47:15,120 --> 00:47:16,759
Speaker 2: but typically not ones that I go out of my

1087
00:47:16,800 --> 00:47:20,080
Speaker 2: way for but I really freaking like this one. It's

1088
00:47:20,200 --> 00:47:21,319
Speaker 2: so good. I like to too.

1089
00:47:21,520 --> 00:47:24,040
Speaker 1: It's not like a plus plus, but it's like a

1090
00:47:24,080 --> 00:47:26,000
Speaker 1: solid A this is. This could be like a fridge

1091
00:47:26,160 --> 00:47:29,200
Speaker 1: staple if you exactly super into Hazy Eye Peace, especially

1092
00:47:29,239 --> 00:47:31,160
Speaker 1: because it comes and I'm a big fan of this.

1093
00:47:31,239 --> 00:47:34,000
Speaker 1: The twelve ounce six pack. I know, the four pack

1094
00:47:34,080 --> 00:47:36,640
Speaker 1: sixteen ounce thing is taken off. That's what people are

1095
00:47:36,640 --> 00:47:39,640
Speaker 1: into these days. I when I crack a beer, oftentimes Matt,

1096
00:47:40,080 --> 00:47:42,279
Speaker 1: which I don't do as often anymore, saying I just

1097
00:47:42,320 --> 00:47:44,120
Speaker 1: want one twelve ounce beer, You're not looking for a

1098
00:47:44,120 --> 00:47:46,600
Speaker 1: full sixteen ounce that's right. I mean I'm even sharing

1099
00:47:46,719 --> 00:47:49,000
Speaker 1: a twelve ounce beer sometimes with Kate, right because we

1100
00:47:49,320 --> 00:47:51,000
Speaker 1: enjoy beer on the show, and so I'm trying to

1101
00:47:51,040 --> 00:47:54,720
Speaker 1: keep my my craft beer in check. Yes, to be honest,

1102
00:47:54,719 --> 00:47:57,359
Speaker 1: we're too old to be drinking like three beers a day.

1103
00:47:57,400 --> 00:47:59,879
Speaker 2: So this is a good beer. This is one.

1104
00:47:59,880 --> 00:48:01,800
Speaker 1: I think I would keep it in the fridge because

1105
00:48:01,800 --> 00:48:04,479
Speaker 1: it is significantly juicy. Gonna be able to get it locally,

1106
00:48:04,480 --> 00:48:05,680
Speaker 1: It's going to be fresh.

1107
00:48:05,800 --> 00:48:05,960
Speaker 2: Yeah.

1108
00:48:06,000 --> 00:48:07,880
Speaker 1: I like this one too, So all right, let's going

1109
00:48:07,920 --> 00:48:10,240
Speaker 1: to do it, Matt. For this episode, we'll put links

1110
00:48:10,280 --> 00:48:12,759
Speaker 1: to some of the resources that we mentioned up in

1111
00:48:12,840 --> 00:48:16,000
Speaker 1: the show notes. On our website at howtomoney dot com.

1112
00:48:16,000 --> 00:48:19,080
Speaker 1: There's a bunch more helpful personal finance info for you

1113
00:48:19,600 --> 00:48:21,960
Speaker 1: that exists up there all the time. Head to how

1114
00:48:21,960 --> 00:48:22,840
Speaker 1: to money dot com.

1115
00:48:22,880 --> 00:48:25,279
Speaker 2: You won't be disappointed, all right. So until next time,

1116
00:48:25,640 --> 00:48:28,279
Speaker 2: best friends out, Best Friends Out,