1 00:00:00,160 --> 00:00:02,679 Speaker 1: Welcome to How the Money. I'm Joel and I'm Matt 2 00:00:02,680 --> 00:00:25,040 Speaker 1: and today we are answering your listener questions. That's right, 3 00:00:25,079 --> 00:00:28,480 Speaker 1: Welcome to and ask How the Money episode. Every other Monday, 4 00:00:28,520 --> 00:00:30,600 Speaker 1: we take listener questions and we would love to hear 5 00:00:30,600 --> 00:00:33,120 Speaker 1: from you if you have a question for us. But Joe, 6 00:00:33,159 --> 00:00:35,280 Speaker 1: we've got some great questions that we're gonna tackle today. 7 00:00:35,479 --> 00:00:38,000 Speaker 1: We've got a listener who's asking about whether or not 8 00:00:38,040 --> 00:00:40,280 Speaker 1: he should sell some Tesla stock in order to buy 9 00:00:40,280 --> 00:00:42,479 Speaker 1: a house, looking forward to that one. We've got a 10 00:00:42,560 --> 00:00:45,199 Speaker 1: roth versus a traditional for a one K question, uh, 11 00:00:45,240 --> 00:00:47,559 Speaker 1: And then we're gonna talk about a listener who's, you know, 12 00:00:47,600 --> 00:00:51,120 Speaker 1: wanting to volunteer his knowledge in order to help spread 13 00:00:51,360 --> 00:00:54,040 Speaker 1: financial wellness. We're gonna get to those three questions plus 14 00:00:54,040 --> 00:00:57,080 Speaker 1: a couple others during this episode. It's an admirable thing 15 00:00:57,200 --> 00:00:59,760 Speaker 1: to want to share your knowledge and share for free, 16 00:00:59,800 --> 00:01:01,720 Speaker 1: which just great. So we got we'll get to that 17 00:01:01,760 --> 00:01:04,240 Speaker 1: and more, including a couple of real estate questions on 18 00:01:04,360 --> 00:01:06,440 Speaker 1: this episode as well. But before we get to that, Man, 19 00:01:06,480 --> 00:01:09,119 Speaker 1: I wanted to let you know that my wife got 20 00:01:09,160 --> 00:01:12,160 Speaker 1: this phone call the other day, and of course it 21 00:01:12,200 --> 00:01:15,600 Speaker 1: was a number she didn't recognize car warranty. Nope, sadly not. 22 00:01:15,680 --> 00:01:19,080 Speaker 1: Those are those are really fun. Uh. And so she 23 00:01:19,120 --> 00:01:21,520 Speaker 1: did not answer the phone and let it go to voicemail. 24 00:01:21,560 --> 00:01:23,760 Speaker 1: But then when she heard it, she sent it my 25 00:01:23,800 --> 00:01:25,840 Speaker 1: way and she was like, should I call this person back? 26 00:01:25,920 --> 00:01:28,800 Speaker 1: What's going on here? And it turns out this person 27 00:01:29,080 --> 00:01:32,440 Speaker 1: was it was a scam phone call, but it sounded real. 28 00:01:32,760 --> 00:01:36,120 Speaker 1: But here's the thing. Emily doesn't even have any student loans, 29 00:01:36,319 --> 00:01:39,880 Speaker 1: so strike strike one. Yes, it's like, we're gonna forgive 30 00:01:39,920 --> 00:01:43,319 Speaker 1: you of this thing that you no longer have. Uh, 31 00:01:43,640 --> 00:01:46,560 Speaker 1: there is no debt to be forgiven. And I think 32 00:01:46,600 --> 00:01:49,200 Speaker 1: the thing that people need to know is we're gonna 33 00:01:49,200 --> 00:01:51,360 Speaker 1: start seeing more and more of these kind of scam 34 00:01:51,400 --> 00:01:55,040 Speaker 1: phone calls surrounding student loans, especially as we get closer 35 00:01:55,080 --> 00:01:59,000 Speaker 1: to this, uh, to this forbearance being over at the 36 00:01:59,040 --> 00:02:02,240 Speaker 1: beginning of next year, you know, February of two, We're 37 00:02:02,240 --> 00:02:04,280 Speaker 1: gonna see more of these phone calls happening. We're gonna 38 00:02:04,280 --> 00:02:09,120 Speaker 1: see more people falling victim to sending money to scammers 39 00:02:09,600 --> 00:02:13,080 Speaker 1: who are making outlandish claims that they can forgive your 40 00:02:13,080 --> 00:02:15,440 Speaker 1: student loan debt when when really they can't. And It's 41 00:02:15,480 --> 00:02:17,440 Speaker 1: just it's one of those things where if it sounds 42 00:02:17,520 --> 00:02:19,720 Speaker 1: too good to be true, it probably is, and in 43 00:02:19,760 --> 00:02:22,240 Speaker 1: this case, uh, it was. It was. It was definitely 44 00:02:22,280 --> 00:02:25,160 Speaker 1: false because yeah, we don't even have any student loans 45 00:02:25,320 --> 00:02:27,720 Speaker 1: in our household, right. I mean, dude, honestly, how often 46 00:02:27,720 --> 00:02:29,600 Speaker 1: do you keep up with your voicemails on your phone? 47 00:02:29,760 --> 00:02:32,480 Speaker 1: Because I get so many of those stupid phone calls 48 00:02:32,520 --> 00:02:35,079 Speaker 1: regarding what like whether it's an extended car warranty if 49 00:02:35,080 --> 00:02:36,960 Speaker 1: you're you know, in your new car. So first of all, 50 00:02:36,960 --> 00:02:38,639 Speaker 1: I don't have a new car, so I know I 51 00:02:38,680 --> 00:02:41,320 Speaker 1: don't have an extended warranty. But yeah, also getting these 52 00:02:41,320 --> 00:02:43,200 Speaker 1: student loan calls as well, and I'm like, okay, I've 53 00:02:43,240 --> 00:02:46,040 Speaker 1: never had student loans before. You're lying to me. I 54 00:02:46,080 --> 00:02:48,799 Speaker 1: know you are, but yeah, I feel like about once 55 00:02:48,840 --> 00:02:50,239 Speaker 1: a week I sit down on my phone and I 56 00:02:50,360 --> 00:02:54,119 Speaker 1: like go through all of these knock amounts. But yeah, 57 00:02:54,160 --> 00:02:56,839 Speaker 1: nobody is really leaving me voicemails anymore. Who really want 58 00:02:56,840 --> 00:02:58,519 Speaker 1: to get in touch with me? Right now? I mean 59 00:02:58,639 --> 00:03:00,440 Speaker 1: we're millennials. We don't talk all that own. That's not 60 00:03:00,480 --> 00:03:03,239 Speaker 1: what the phone is for exactly. But yeah, just a 61 00:03:03,360 --> 00:03:05,040 Speaker 1: word of the wise one to let you know you 62 00:03:05,160 --> 00:03:07,840 Speaker 1: might also get a voicemail like this in the near future. 63 00:03:08,120 --> 00:03:10,920 Speaker 1: And my recommendation is to just hit the lead. Don't 64 00:03:10,919 --> 00:03:14,679 Speaker 1: engage these people who are making outrageous claims that they're 65 00:03:14,680 --> 00:03:16,600 Speaker 1: going to give you something for nothing, because it's not 66 00:03:16,639 --> 00:03:19,480 Speaker 1: gonna happen. It's gonna end in heartbreak. That's right. Julius 67 00:03:19,520 --> 00:03:21,840 Speaker 1: introduced the beer that we're gonna enjoy this episode. We 68 00:03:21,960 --> 00:03:26,200 Speaker 1: have a beer by Omegon. Is it technically brewery Omegon 69 00:03:26,280 --> 00:03:27,480 Speaker 1: because it says it in front of it. I don't 70 00:03:27,480 --> 00:03:30,080 Speaker 1: even no idea. I think it's Omgon Brewery. I don't know. 71 00:03:30,120 --> 00:03:34,480 Speaker 1: But this beer is called Three Philosophers. Our friend David 72 00:03:34,480 --> 00:03:36,480 Speaker 1: he actually donated this one to the show. I'm looking 73 00:03:36,480 --> 00:03:38,760 Speaker 1: forward to enjoying this one with you and we will 74 00:03:38,760 --> 00:03:41,440 Speaker 1: share our thoughts at the end of the episode. Sounds good, 75 00:03:41,520 --> 00:03:44,640 Speaker 1: looking forward to it. But let's get onto the listener questions. 76 00:03:44,640 --> 00:03:46,880 Speaker 1: Matt and if anybody out there has one they want 77 00:03:46,880 --> 00:03:49,800 Speaker 1: to submit to be on a future ask htm episode, 78 00:03:49,960 --> 00:03:51,160 Speaker 1: we'd love to hear it. Just got to have the 79 00:03:51,200 --> 00:03:54,280 Speaker 1: money dot com slash ask and you can submit your 80 00:03:54,280 --> 00:03:57,440 Speaker 1: own voice question for I don't know. The next episode 81 00:03:57,440 --> 00:03:59,920 Speaker 1: two weeks from now. But let's get to the first one. 82 00:04:00,040 --> 00:04:03,960 Speaker 1: This one is from a listener who wants to buy 83 00:04:03,960 --> 00:04:08,800 Speaker 1: more rental properties and she wants to accelerate the process. Hello, 84 00:04:08,920 --> 00:04:14,880 Speaker 1: this is Anna from Delaware. My question is, so I 85 00:04:14,920 --> 00:04:18,360 Speaker 1: am looking to get investment properties. Already have one that's 86 00:04:18,360 --> 00:04:21,120 Speaker 1: fully paid off. I don't have any debt at all, 87 00:04:21,839 --> 00:04:25,440 Speaker 1: um and to have a year of emergency funds and 88 00:04:25,760 --> 00:04:28,800 Speaker 1: um a bit saved up, not a lot like five 89 00:04:29,360 --> 00:04:32,080 Speaker 1: five to seven thousand. So I my goal is to 90 00:04:32,360 --> 00:04:36,880 Speaker 1: purchase another investment property to rent out. But I don't 91 00:04:36,880 --> 00:04:40,240 Speaker 1: know what's best to save my money in a regular 92 00:04:40,320 --> 00:04:45,600 Speaker 1: savings account or invest that money and once the market 93 00:04:45,640 --> 00:04:49,560 Speaker 1: goes down and possibly two years pull its like you know, 94 00:04:49,720 --> 00:04:53,919 Speaker 1: sell the stocks and use that money to buy a house, 95 00:04:54,200 --> 00:04:58,680 Speaker 1: or do the savings routes part Another question is what 96 00:04:58,720 --> 00:05:02,080 Speaker 1: are your thoughts about we eevil? Thanks again for your 97 00:05:02,120 --> 00:05:05,200 Speaker 1: time by Oh very nice. Anna snuck one in there 98 00:05:05,360 --> 00:05:08,760 Speaker 1: before the time I went off. She got that second 99 00:05:08,839 --> 00:05:11,280 Speaker 1: question in there. But Anna, I love that you're going 100 00:05:11,320 --> 00:05:14,520 Speaker 1: down this the real estate investing route and having no 101 00:05:14,600 --> 00:05:17,120 Speaker 1: other debt to speak of is awesome, including the mortgage 102 00:05:17,160 --> 00:05:20,400 Speaker 1: on that investment property. This puts you in a great position. Uh. 103 00:05:20,400 --> 00:05:23,000 Speaker 1: And that's because lenders they're gonna ask, Uh, they're gonna 104 00:05:23,000 --> 00:05:26,440 Speaker 1: ask about your debt to income ratio when assessing whether 105 00:05:26,480 --> 00:05:28,919 Speaker 1: they'll lend to you or not in the future. And 106 00:05:28,920 --> 00:05:32,240 Speaker 1: so having little or in your case, no debt is 107 00:05:32,279 --> 00:05:33,960 Speaker 1: a big plus. And then on top of that, you've 108 00:05:33,960 --> 00:05:36,880 Speaker 1: got a full year of expenses sucked away in your 109 00:05:36,920 --> 00:05:40,760 Speaker 1: emergency fund. That is a fully funded emergency fund. It's 110 00:05:40,760 --> 00:05:43,479 Speaker 1: like ready to burst. That is so awesome. Uh. And 111 00:05:43,520 --> 00:05:45,800 Speaker 1: also I love to just saw casual she is about it. 112 00:05:45,839 --> 00:05:47,479 Speaker 1: She's like, Hey, I'm just gonna tell you about all 113 00:05:47,480 --> 00:05:49,920 Speaker 1: the ways I've been totally crushing my finances looking to 114 00:05:50,040 --> 00:05:52,560 Speaker 1: crush my finances in this other way as well. Uh. 115 00:05:52,640 --> 00:05:55,599 Speaker 1: Put my peers to shame. She's just going about it 116 00:05:55,640 --> 00:05:58,520 Speaker 1: super casually but dominating in humble fashion. You are doing 117 00:05:58,520 --> 00:06:01,920 Speaker 1: an excellent job. Congrats. Yes, and let's let's talk about 118 00:06:02,440 --> 00:06:06,839 Speaker 1: how you should approach this next rental property investment though, 119 00:06:07,240 --> 00:06:10,239 Speaker 1: because yeah, you mentioned that you have a fully paid 120 00:06:10,279 --> 00:06:13,760 Speaker 1: for rental property, which is awesome. We would say, if 121 00:06:13,760 --> 00:06:16,520 Speaker 1: you're looking to get deeper into the rental property space, 122 00:06:16,920 --> 00:06:19,800 Speaker 1: doing a cash out refinance on that home might be 123 00:06:19,839 --> 00:06:22,440 Speaker 1: your best option when it comes to funding that next. 124 00:06:22,440 --> 00:06:26,800 Speaker 1: Purchase rates are still incredibly low overall historically. Uh, and 125 00:06:26,960 --> 00:06:29,600 Speaker 1: it gives you the ability to shorten the timeline for 126 00:06:29,640 --> 00:06:32,640 Speaker 1: buying another property. Are paid off homes a good thing? 127 00:06:32,960 --> 00:06:35,479 Speaker 1: We would say, yeah, they're not. It's certainly not a 128 00:06:35,520 --> 00:06:38,279 Speaker 1: bad thing to own home free and clear. Do cash 129 00:06:38,279 --> 00:06:41,480 Speaker 1: out refinances? Are they risky at all? Well, we would 130 00:06:41,480 --> 00:06:44,440 Speaker 1: say that depends on how you're going to use the proceeds. 131 00:06:44,640 --> 00:06:47,799 Speaker 1: There are a lot of bad reasons we would encourage 132 00:06:47,800 --> 00:06:50,440 Speaker 1: someone to not take money out of their home. There's 133 00:06:50,760 --> 00:06:53,360 Speaker 1: a lot of people the way they have approached helocks 134 00:06:53,520 --> 00:06:55,680 Speaker 1: or cash out refinances in the past has gotten them 135 00:06:55,680 --> 00:06:59,039 Speaker 1: into trouble because they used it to enhance their lifestyle, 136 00:06:59,120 --> 00:07:02,640 Speaker 1: exactly to the one cation to If you're using it 137 00:07:02,720 --> 00:07:04,640 Speaker 1: to buy things that are only going to go down 138 00:07:04,640 --> 00:07:07,880 Speaker 1: in value, then we would discourage you from taking money 139 00:07:07,960 --> 00:07:10,600 Speaker 1: out of that property. Basically, since you're taking money out 140 00:07:10,760 --> 00:07:12,520 Speaker 1: of an investment, we want you to then take that 141 00:07:12,560 --> 00:07:15,120 Speaker 1: money and put it back into an investment. Needs to 142 00:07:15,120 --> 00:07:17,680 Speaker 1: be similar exactly. Yeah, if you're using it just a 143 00:07:17,720 --> 00:07:20,120 Speaker 1: fun lifestyle, not a good idea. But Anna, that's not 144 00:07:20,120 --> 00:07:22,440 Speaker 1: what you're doing. So we would say using a portion 145 00:07:22,640 --> 00:07:24,679 Speaker 1: of the equity that you've built up over the years 146 00:07:25,000 --> 00:07:29,040 Speaker 1: by being a smart, savvy saver and investor. Well, that's 147 00:07:29,080 --> 00:07:32,000 Speaker 1: an excellent way to continue your investing journey and to 148 00:07:32,040 --> 00:07:34,440 Speaker 1: be able to grow your cash flow and to be 149 00:07:34,440 --> 00:07:36,600 Speaker 1: able to accomplish some of those real estate investing goals 150 00:07:36,760 --> 00:07:38,760 Speaker 1: a little more quickly. Yes, it sounds like you're being 151 00:07:38,800 --> 00:07:41,760 Speaker 1: really conservative and a uh and there's nothing wrong with that, right, Like, 152 00:07:41,800 --> 00:07:44,840 Speaker 1: you know, we don't consider ourselves to be incredibly risky dudes. 153 00:07:45,280 --> 00:07:48,120 Speaker 1: And while leverage can be a powerful tool to build wealth, 154 00:07:48,160 --> 00:07:49,960 Speaker 1: it can also come back to bite you if you 155 00:07:49,960 --> 00:07:52,760 Speaker 1: aren't being careful, and so to avoid as much risk 156 00:07:52,800 --> 00:07:55,160 Speaker 1: as possible, it's totally okay if you want to take 157 00:07:55,200 --> 00:07:57,640 Speaker 1: the slower path and you know, not touch the equity 158 00:07:57,640 --> 00:08:00,400 Speaker 1: in that property. But to your question, what should you 159 00:08:00,440 --> 00:08:03,000 Speaker 1: do with the money in the meantime? Uh? And you 160 00:08:03,040 --> 00:08:06,040 Speaker 1: mentioned a timeline of two years, and I wouldn't be 161 00:08:06,040 --> 00:08:08,360 Speaker 1: investing all of your money, you know, in stocks on 162 00:08:08,480 --> 00:08:11,720 Speaker 1: that short of a timeline. You could easily lose some 163 00:08:11,800 --> 00:08:13,640 Speaker 1: of that money over a two year period if we 164 00:08:13,640 --> 00:08:15,680 Speaker 1: saw a slump in the market, if we entered a 165 00:08:15,720 --> 00:08:20,160 Speaker 1: bear market period. Uh, And if you do invest, you'll 166 00:08:20,200 --> 00:08:22,760 Speaker 1: want to opt for a fund or an e t 167 00:08:22,960 --> 00:08:26,080 Speaker 1: F that reduces risk because it incorporates bonds within that 168 00:08:26,120 --> 00:08:30,080 Speaker 1: fund as well. And so for instance, Target Date Fund 169 00:08:30,160 --> 00:08:32,720 Speaker 1: would do exactly that. You'll get some of that upside 170 00:08:33,040 --> 00:08:36,400 Speaker 1: by having a large portion of that fund invested in stocks, 171 00:08:36,559 --> 00:08:38,800 Speaker 1: but it also won't be nearly as volatile because you'll 172 00:08:38,800 --> 00:08:40,840 Speaker 1: have some bond exposure as well. Yes, right, Yeah, there's 173 00:08:40,880 --> 00:08:43,880 Speaker 1: also similarly, there's a home down payment e t F 174 00:08:44,480 --> 00:08:46,520 Speaker 1: that I think it's kind of cool for this exact 175 00:08:46,559 --> 00:08:49,280 Speaker 1: sort of purpose from a company called Life Goal Investments 176 00:08:49,440 --> 00:08:51,160 Speaker 1: will link to both those funds that that we just 177 00:08:51,240 --> 00:08:53,800 Speaker 1: mentioned in in the show notes. But match right, you 178 00:08:53,840 --> 00:08:56,959 Speaker 1: want to be really really conservative with money that you're 179 00:08:56,960 --> 00:08:59,800 Speaker 1: gonna need on a short timeline um and investing it 180 00:09:00,960 --> 00:09:03,280 Speaker 1: in stocks is is too risky when we're talking about 181 00:09:03,520 --> 00:09:06,640 Speaker 1: a timeline of two years, and that question math that 182 00:09:06,800 --> 00:09:09,199 Speaker 1: in a snuck in under the wire. Let's let's get 183 00:09:09,200 --> 00:09:12,320 Speaker 1: to that one too. Yeah. We BOL and so let's 184 00:09:12,400 --> 00:09:15,080 Speaker 1: let's talk about that. We BOL is another company doing 185 00:09:15,200 --> 00:09:18,040 Speaker 1: kind of similar things to what Robin Hood is, but 186 00:09:18,400 --> 00:09:21,840 Speaker 1: unlike Robin hood wee bill offers access to i ras, 187 00:09:22,960 --> 00:09:25,160 Speaker 1: which is an awesome thing, right that Like that is 188 00:09:25,200 --> 00:09:27,040 Speaker 1: one of our biggest complaints about robin hood is the 189 00:09:27,040 --> 00:09:30,200 Speaker 1: fact that they don't offer those tax advantage retirement account 190 00:09:30,240 --> 00:09:32,920 Speaker 1: They're they're getting people first time investors going straight into 191 00:09:32,920 --> 00:09:37,079 Speaker 1: brokerage accounts. They're missing out on tax benefits of going 192 00:09:37,120 --> 00:09:39,800 Speaker 1: into an IRA instead, and that is not a good thing. 193 00:09:39,840 --> 00:09:42,720 Speaker 1: We Bol is not doing that, which we applaud. That's 194 00:09:42,760 --> 00:09:45,960 Speaker 1: that's super important to us because tax advantage accounts should 195 00:09:45,960 --> 00:09:48,640 Speaker 1: be the first route you go down. The one downside, though, 196 00:09:48,679 --> 00:09:50,920 Speaker 1: which we've discussed a number of times to using a 197 00:09:51,000 --> 00:09:53,920 Speaker 1: platform like robin Hood, like wee bol that has a 198 00:09:53,960 --> 00:09:56,360 Speaker 1: ton of bells and whistles, is that it might tempt 199 00:09:56,400 --> 00:09:59,720 Speaker 1: you to make riskier moves with your money, Like and 200 00:09:59,840 --> 00:10:01,360 Speaker 1: if you were to open up one of these accounts 201 00:10:01,360 --> 00:10:05,080 Speaker 1: with weibel, would you be buying more cryptocurrency, more individual stocks, 202 00:10:05,120 --> 00:10:07,439 Speaker 1: would you be taking more risk with money that you 203 00:10:07,480 --> 00:10:09,440 Speaker 1: can't afford to take risk with you know, or are 204 00:10:09,440 --> 00:10:13,079 Speaker 1: you're gonna start just trading more frequently, potentially triggering tax bills. 205 00:10:13,440 --> 00:10:15,920 Speaker 1: If the answer to any of those questions is yes, 206 00:10:16,200 --> 00:10:18,520 Speaker 1: we would say stick with one of those more mundane, 207 00:10:18,600 --> 00:10:21,560 Speaker 1: kind of boring old school companies like Fidelity or Vanguard 208 00:10:21,920 --> 00:10:23,360 Speaker 1: if you want kind of the middle of the road. 209 00:10:23,480 --> 00:10:26,040 Speaker 1: Our favorite option is in One Finance. They're kind of 210 00:10:26,080 --> 00:10:28,600 Speaker 1: that happy medium pick for us. Matt actually wrote a 211 00:10:28,600 --> 00:10:30,160 Speaker 1: review about it on the website. We'll link to it 212 00:10:30,160 --> 00:10:33,079 Speaker 1: in the show notes. But they are probably our favorite 213 00:10:33,360 --> 00:10:36,920 Speaker 1: of the investing apps. But yeah, we we love the 214 00:10:36,960 --> 00:10:39,880 Speaker 1: old school players as well. Even though they're not sexy, 215 00:10:40,200 --> 00:10:42,600 Speaker 1: they still they get the job done. Yeah, generally speaking, 216 00:10:42,600 --> 00:10:44,040 Speaker 1: that's what you need to be careful of the fact 217 00:10:44,120 --> 00:10:47,640 Speaker 1: that you've got your retirement savings and investments literally at 218 00:10:47,640 --> 00:10:50,800 Speaker 1: your fingertips, because it's it's so weird. That's something that's 219 00:10:50,840 --> 00:10:54,080 Speaker 1: so easy has such like long term possible ramifications, right, 220 00:10:54,080 --> 00:10:55,719 Speaker 1: Like it almost makes me think of like if you're 221 00:10:55,760 --> 00:10:57,760 Speaker 1: driving a car instead of a you know, a big 222 00:10:57,800 --> 00:10:59,280 Speaker 1: steering wheel that you had to like, oh it takes 223 00:10:59,400 --> 00:11:01,000 Speaker 1: you know, it takes a little bit of muscle. Remember, 224 00:11:01,000 --> 00:11:02,320 Speaker 1: like the first time you drove a car, you're kind 225 00:11:02,320 --> 00:11:04,000 Speaker 1: of like, oh, wow, this is kind of hard to turn. 226 00:11:04,280 --> 00:11:07,920 Speaker 1: I imagine that feeling, uh like power steering. Well, yeah, 227 00:11:08,000 --> 00:11:09,800 Speaker 1: you got power steering. But even still it's it's like 228 00:11:09,920 --> 00:11:12,920 Speaker 1: it's a little bit difficult to actually steer the car, right. 229 00:11:13,040 --> 00:11:15,000 Speaker 1: But imagine if we steered our cars with just like 230 00:11:15,040 --> 00:11:18,680 Speaker 1: a little thumb joystick. That seems like too easy of 231 00:11:18,720 --> 00:11:21,160 Speaker 1: a thing to do with like just your thumb, you know, 232 00:11:21,200 --> 00:11:23,640 Speaker 1: and it's moving this massive vehicle. I think it's actually 233 00:11:23,679 --> 00:11:25,240 Speaker 1: kind of good that the vehicle is stabilized by the 234 00:11:25,280 --> 00:11:28,000 Speaker 1: fact that we have to intentionally take these big movements 235 00:11:28,080 --> 00:11:30,000 Speaker 1: as we you know, hand over hand, as you're making 236 00:11:30,000 --> 00:11:31,480 Speaker 1: the turn, like you're supposed to do, like you learn 237 00:11:31,559 --> 00:11:33,800 Speaker 1: how to drive when you're in high school, as opposed 238 00:11:33,840 --> 00:11:36,040 Speaker 1: to just like a little tiny, little thumb joystick that's 239 00:11:36,040 --> 00:11:38,320 Speaker 1: like ultra sensitive, because what happens like when you hit 240 00:11:38,320 --> 00:11:40,560 Speaker 1: some railway tracks, Well, your thumb's gonna like bounce around 241 00:11:40,559 --> 00:11:42,360 Speaker 1: a little bit, and if that steers the whole car, 242 00:11:42,720 --> 00:11:46,199 Speaker 1: you're gonna crash. Like That's how I think about these 243 00:11:46,280 --> 00:11:48,839 Speaker 1: different apps. When there might be gyrations in the market 244 00:11:48,840 --> 00:11:51,079 Speaker 1: and if it's too accessible and just you know, from 245 00:11:51,080 --> 00:11:53,360 Speaker 1: a time standpoint, if you're only focusing on the here 246 00:11:53,360 --> 00:11:55,640 Speaker 1: and now, you can make some movements within your long 247 00:11:55,760 --> 00:11:58,880 Speaker 1: term portfolio that may not end up painting out well, yeah, 248 00:11:58,920 --> 00:12:00,959 Speaker 1: a little bit of friction goes a long way to 249 00:12:01,000 --> 00:12:04,160 Speaker 1: actually helping us make better decisions. And if it's completely 250 00:12:04,200 --> 00:12:07,000 Speaker 1: friction list that sounds nice, right, but in reality it 251 00:12:07,080 --> 00:12:09,840 Speaker 1: might cause us to be dumb investors to make to 252 00:12:09,880 --> 00:12:12,320 Speaker 1: make bad moves. But Anna is on the right path. 253 00:12:12,480 --> 00:12:15,600 Speaker 1: She's obviously already crushing it. And Anna, we hope that 254 00:12:15,679 --> 00:12:19,560 Speaker 1: advice is helpful as you continue to pursue investing in 255 00:12:19,760 --> 00:12:22,160 Speaker 1: more real estate. All right, Matt, we got more questions 256 00:12:22,160 --> 00:12:24,400 Speaker 1: to get to, including the one you mentioned about selling 257 00:12:24,400 --> 00:12:36,200 Speaker 1: Tesla stock. Will get to that one next. All right, 258 00:12:36,240 --> 00:12:38,360 Speaker 1: we are back Joel. Just a second ago you mentioned 259 00:12:38,360 --> 00:12:41,160 Speaker 1: Tesla stock, and so let's hear a question about single 260 00:12:41,200 --> 00:12:45,480 Speaker 1: stock investing and purchasing home. Hi, Matt and Joel, this 261 00:12:45,559 --> 00:12:48,960 Speaker 1: is Aaron in Riverside, California, and I'm super grateful for 262 00:12:48,960 --> 00:12:51,520 Speaker 1: all to help you give to us listeners. So, my 263 00:12:51,559 --> 00:12:53,600 Speaker 1: wife and I are planning to buy our first house 264 00:12:53,760 --> 00:12:57,040 Speaker 1: sometime in the next six to eighteen months. Our savings 265 00:12:57,040 --> 00:12:59,240 Speaker 1: and investments would currently allow us to put down about 266 00:12:59,280 --> 00:13:02,440 Speaker 1: twenty to thirty percent on a home here in southern California, 267 00:13:02,880 --> 00:13:05,280 Speaker 1: though I'll admit a good amount of that is thanks 268 00:13:05,280 --> 00:13:08,679 Speaker 1: to the Tesla boom of now I realize it isn't 269 00:13:08,720 --> 00:13:10,840 Speaker 1: smart to hold a large percentage of our down payment 270 00:13:10,880 --> 00:13:13,599 Speaker 1: on one volatile stock, but I'm hesitant to pull it 271 00:13:13,679 --> 00:13:16,160 Speaker 1: out and have it sit still for possibly a year plus. 272 00:13:16,600 --> 00:13:18,600 Speaker 1: And I also assume moving a lot of that over 273 00:13:18,640 --> 00:13:21,400 Speaker 1: to a safer index fund for the final year before 274 00:13:21,400 --> 00:13:23,679 Speaker 1: we buy a home would make them susceptible to short 275 00:13:23,760 --> 00:13:26,760 Speaker 1: term capital gains tax should we find our house less 276 00:13:26,760 --> 00:13:29,800 Speaker 1: than twelve months after reinvesting that, on top of the 277 00:13:29,840 --> 00:13:32,199 Speaker 1: long term capital gains we would have paid upon selling 278 00:13:32,200 --> 00:13:35,960 Speaker 1: the original stocks. So do I understand correctly how capital 279 00:13:36,040 --> 00:13:38,720 Speaker 1: gains taxes work? And what would be your guidance on 280 00:13:38,800 --> 00:13:41,680 Speaker 1: managing this nest egg well over the next six to 281 00:13:41,800 --> 00:13:44,600 Speaker 1: eighteen months before our big day comes and we find 282 00:13:44,600 --> 00:13:47,640 Speaker 1: our new home. Thanks so much for your time, Aaron, 283 00:13:47,679 --> 00:13:49,839 Speaker 1: Thanks for your question. And man, I'm gonna say I 284 00:13:49,880 --> 00:13:56,560 Speaker 1: love that Aaron is looking to put down overachiever, and 285 00:13:56,600 --> 00:13:58,400 Speaker 1: you and I we always say that is kind of 286 00:13:58,440 --> 00:14:00,560 Speaker 1: that minimum floor that we want people to shoot for. 287 00:14:00,960 --> 00:14:03,120 Speaker 1: And it's not that we've talked about other potential ways 288 00:14:03,120 --> 00:14:05,760 Speaker 1: of buying a home if you don't have to put down, 289 00:14:05,760 --> 00:14:08,240 Speaker 1: but we think that is the goal that homebuyers should 290 00:14:08,240 --> 00:14:10,640 Speaker 1: be striving for. The gold standard. Yeah, I know it's 291 00:14:10,640 --> 00:14:13,640 Speaker 1: not easy, but it's it's the best way to make 292 00:14:13,640 --> 00:14:16,920 Speaker 1: sure that you're not overpaying when it comes to private 293 00:14:16,960 --> 00:14:19,960 Speaker 1: mortgage insurance or p m I. And this is a 294 00:14:20,040 --> 00:14:22,720 Speaker 1: big deal because p m I can be really expensive 295 00:14:23,040 --> 00:14:25,560 Speaker 1: in addition to the amount of your payment that's going 296 00:14:25,600 --> 00:14:29,640 Speaker 1: towards principal interests and escrow. If you haven't saved up 297 00:14:29,640 --> 00:14:33,680 Speaker 1: well enough, you could find those additional fees to be 298 00:14:33,840 --> 00:14:36,720 Speaker 1: to be quite large when it comes to your monthly 299 00:14:36,800 --> 00:14:39,880 Speaker 1: note and Matt the median price of a single family 300 00:14:39,920 --> 00:14:43,920 Speaker 1: home in California these days it's around eight hundred thousand dollars. 301 00:14:44,280 --> 00:14:47,600 Speaker 1: That's very expensive. Yes, it ain't cheap. And so let's 302 00:14:47,640 --> 00:14:50,560 Speaker 1: say someone only put down ten percent. Well, that's a 303 00:14:50,560 --> 00:14:53,560 Speaker 1: loan amount of seven and twenty dollars, which is quite 304 00:14:53,600 --> 00:14:56,120 Speaker 1: a bit. And then when p m I can cost 305 00:14:56,320 --> 00:15:00,120 Speaker 1: roughly one five percent of the purchase price every single year, well, 306 00:15:00,120 --> 00:15:02,520 Speaker 1: that means that person is stuck paying around a thousand 307 00:15:02,600 --> 00:15:05,760 Speaker 1: dollars every month every month. Yeah, towards p m I. 308 00:15:05,960 --> 00:15:07,720 Speaker 1: That's so much money. That's so much money, right, And 309 00:15:07,720 --> 00:15:10,000 Speaker 1: that's not the situation you want to find yourself in. 310 00:15:10,520 --> 00:15:12,800 Speaker 1: So the more you can put down being that magical 311 00:15:12,880 --> 00:15:14,880 Speaker 1: number where p m I falls away, that's what you 312 00:15:14,920 --> 00:15:17,360 Speaker 1: want to shoot for totally. And Aaron, congrats on owning 313 00:15:17,440 --> 00:15:19,960 Speaker 1: some Tesla shares, because you know, even though we're not 314 00:15:20,160 --> 00:15:23,720 Speaker 1: big fans of individual stock investing, sometimes you get lucky. 315 00:15:24,000 --> 00:15:26,160 Speaker 1: And that's what we chalk this up to. If you 316 00:15:26,240 --> 00:15:29,240 Speaker 1: heard our interview back with Carl Jensen, that's exactly what 317 00:15:29,320 --> 00:15:32,400 Speaker 1: he chalks is a good fortune of having more than 318 00:15:32,480 --> 00:15:36,600 Speaker 1: one million dollars in Tesla stock up to getting lucky 319 00:15:36,640 --> 00:15:39,160 Speaker 1: because he had this nerdy interest and that's paid off 320 00:15:39,240 --> 00:15:42,680 Speaker 1: nicely for him. But even still, Carl still suggests that 321 00:15:42,720 --> 00:15:45,440 Speaker 1: the best way, the most full proof way to build 322 00:15:45,480 --> 00:15:48,200 Speaker 1: wealth is to invest in index funds UH and to 323 00:15:48,320 --> 00:15:51,400 Speaker 1: not shoot for the moon with individual stocks. And Aaron, 324 00:15:51,440 --> 00:15:53,440 Speaker 1: you know, with your home purchase in the near term, 325 00:15:53,880 --> 00:15:56,080 Speaker 1: with it being less than two years away, the best 326 00:15:56,160 --> 00:15:57,560 Speaker 1: thing for you to do at this point, we think 327 00:15:57,640 --> 00:16:01,040 Speaker 1: is to sell the appropriate amount of Tesla shares and 328 00:16:01,040 --> 00:16:03,760 Speaker 1: then to hold that money in your savings account. I 329 00:16:03,800 --> 00:16:06,240 Speaker 1: know it sounds lame, but you know, look at even 330 00:16:06,280 --> 00:16:08,440 Speaker 1: just the effect that Ellen recently had on the stock 331 00:16:08,480 --> 00:16:11,560 Speaker 1: price with a Twitter poll. You don't want your ability 332 00:16:11,600 --> 00:16:15,600 Speaker 1: to be able to purchase your family home based on 333 00:16:15,720 --> 00:16:18,560 Speaker 1: how a crazy ceo feels after he had his morning breakfast. 334 00:16:19,600 --> 00:16:21,720 Speaker 1: I know. Yeah, when you think about it's pretty insane 335 00:16:21,760 --> 00:16:24,520 Speaker 1: the the swings that can happen based on a tweet 336 00:16:24,600 --> 00:16:27,640 Speaker 1: or two in the price of different cryptocurrencies, in the 337 00:16:27,680 --> 00:16:30,000 Speaker 1: price of Tesla stock, and yeah, you don't want to 338 00:16:30,040 --> 00:16:32,640 Speaker 1: be the person on the losing end of a tweet 339 00:16:32,720 --> 00:16:35,960 Speaker 1: that is out of bounds. And that stock, Matt, it 340 00:16:35,960 --> 00:16:38,640 Speaker 1: took a solid hit. It was a mostly short term hit, 341 00:16:38,720 --> 00:16:41,440 Speaker 1: but yeah, putting that Twitter poll out about how much 342 00:16:41,760 --> 00:16:44,680 Speaker 1: Tesla stock you should be selling definitely hurt the stock 343 00:16:44,680 --> 00:16:47,280 Speaker 1: overall for for a little while. And so we would 344 00:16:47,280 --> 00:16:50,240 Speaker 1: say at this point, Aaron, that your gamble has paid off. 345 00:16:50,360 --> 00:16:52,880 Speaker 1: Now take your chips off the table. You can look 346 00:16:52,880 --> 00:16:55,560 Speaker 1: for that home with confidence knowing that you have a 347 00:16:55,600 --> 00:16:58,800 Speaker 1: minimum of of that home purchase price to put down. 348 00:16:59,120 --> 00:17:01,560 Speaker 1: That that feels good. Um, And then we would say 349 00:17:01,800 --> 00:17:04,919 Speaker 1: don't reinvest into index funds, because yes, you would end 350 00:17:04,960 --> 00:17:08,520 Speaker 1: up paying short term capital gains, which is your ordinary 351 00:17:08,560 --> 00:17:10,600 Speaker 1: income tax rate on the gains that you would see, 352 00:17:11,000 --> 00:17:13,800 Speaker 1: but we would say that's not the big problem. It's 353 00:17:14,000 --> 00:17:17,199 Speaker 1: it's not a problem to pay tax on earnings um. 354 00:17:17,280 --> 00:17:20,160 Speaker 1: In fact, that's kind of a success tax in actuality. 355 00:17:20,400 --> 00:17:23,800 Speaker 1: The far bigger potential issue is losing some of that 356 00:17:23,840 --> 00:17:27,400 Speaker 1: money because of that shorter timeline. And so yeah, don't 357 00:17:27,400 --> 00:17:30,520 Speaker 1: put that down payment money at risk, Aaron, Uh, sleep 358 00:17:30,560 --> 00:17:32,200 Speaker 1: easy at night having it in the bank and start 359 00:17:32,240 --> 00:17:35,560 Speaker 1: looking for that house. I know, especially with what's been 360 00:17:35,600 --> 00:17:38,359 Speaker 1: happening with inflation, it feels worse to have money in 361 00:17:38,400 --> 00:17:42,760 Speaker 1: a savings account, but especially when this purchase that you're 362 00:17:42,800 --> 00:17:45,359 Speaker 1: making is for a primary home. This this is a 363 00:17:45,359 --> 00:17:49,119 Speaker 1: really important purchase and you can't afford to lose that 364 00:17:49,240 --> 00:17:52,240 Speaker 1: down payment money. Anything you can't afford to lose, we 365 00:17:52,280 --> 00:17:55,360 Speaker 1: would say you shouldn't be willing to risk. Yeah, I mean, honestly, Aerin, 366 00:17:55,400 --> 00:17:57,040 Speaker 1: you might be confused, you know, because you just heard 367 00:17:57,080 --> 00:17:59,800 Speaker 1: us tell Anna before the break some of a different 368 00:17:59,800 --> 00:18:02,080 Speaker 1: way is that she could invest her money for a house, 369 00:18:02,600 --> 00:18:04,480 Speaker 1: and so you might be thinking, well, isn't that what 370 00:18:04,520 --> 00:18:06,440 Speaker 1: you guys should be telling me as well? But I 371 00:18:06,480 --> 00:18:08,320 Speaker 1: think there's a big difference between saving up for a 372 00:18:08,359 --> 00:18:11,080 Speaker 1: primary residence, uh, and then saving up for an investment 373 00:18:11,080 --> 00:18:14,200 Speaker 1: property because oftentimes, you know, like Joel Sudden, primary residence, 374 00:18:14,240 --> 00:18:17,000 Speaker 1: like this is a personal goal and it's something that 375 00:18:17,040 --> 00:18:19,240 Speaker 1: has an impact on your day to day living. It 376 00:18:19,320 --> 00:18:21,880 Speaker 1: might more easily give you the ability to work from home, 377 00:18:21,960 --> 00:18:23,679 Speaker 1: or it could give you, you you know, some space for 378 00:18:23,760 --> 00:18:26,040 Speaker 1: a growing family if you're looking to have kids. But 379 00:18:26,119 --> 00:18:29,000 Speaker 1: since Anna was looking at an investment property, it's not 380 00:18:29,040 --> 00:18:31,440 Speaker 1: likely going to have an impact on her living her life. 381 00:18:31,760 --> 00:18:33,520 Speaker 1: If the markets tank in a couple of years and 382 00:18:33,560 --> 00:18:35,800 Speaker 1: she has to wait another year before you know, she 383 00:18:35,840 --> 00:18:37,360 Speaker 1: pulls some money out of the market and buys her 384 00:18:37,359 --> 00:18:40,120 Speaker 1: next property, it's not a big deal if she has 385 00:18:40,160 --> 00:18:42,840 Speaker 1: to wait, But it is more of a problem for you, 386 00:18:43,080 --> 00:18:44,480 Speaker 1: I guess to a certain extent, it comes down to 387 00:18:44,480 --> 00:18:47,679 Speaker 1: how flexible you are about purchasing a home in the 388 00:18:47,720 --> 00:18:50,280 Speaker 1: next six to eighteen months, because honestly, if you don't 389 00:18:50,320 --> 00:18:53,679 Speaker 1: really care, well, we might say okay, like we might 390 00:18:53,720 --> 00:18:55,879 Speaker 1: give you a little bit more permission to invest that money. 391 00:18:56,080 --> 00:18:58,080 Speaker 1: If you really don't care if you have a home, 392 00:18:58,400 --> 00:19:01,320 Speaker 1: say not six eight forty eight months from now. If 393 00:19:01,320 --> 00:19:02,760 Speaker 1: you're kind of like, you know what, no big deal. 394 00:19:03,000 --> 00:19:05,159 Speaker 1: If you can push that timeline back and it's it's 395 00:19:05,160 --> 00:19:07,840 Speaker 1: not gonna affect us negatively, emotionally and exactly to be 396 00:19:07,840 --> 00:19:10,040 Speaker 1: happy either way. If that's the case, then sure, go ahead, 397 00:19:10,040 --> 00:19:12,719 Speaker 1: and you know, look at investing conservatively. But with this 398 00:19:12,800 --> 00:19:14,800 Speaker 1: being something that you're looking at not only in the 399 00:19:14,800 --> 00:19:17,760 Speaker 1: short term, but it's for your primary residence. And on 400 00:19:17,800 --> 00:19:19,480 Speaker 1: top of that, you know, you've got this money in 401 00:19:19,560 --> 00:19:21,359 Speaker 1: a single stock, and so you're gonna see a lot 402 00:19:21,440 --> 00:19:24,159 Speaker 1: more volatility, uh, the ups and downs of the market, 403 00:19:24,280 --> 00:19:29,280 Speaker 1: especially with a very headline worthy company like Tesla, You're 404 00:19:29,280 --> 00:19:31,720 Speaker 1: gonna see a lot of gyrations within a stock price. Yeah, 405 00:19:31,720 --> 00:19:33,879 Speaker 1: more than anything. You don't want to screw up the 406 00:19:33,920 --> 00:19:36,880 Speaker 1: purchase of that primary home if it's a goal, especially 407 00:19:37,119 --> 00:19:40,160 Speaker 1: the couple has, like you want to play that more 408 00:19:40,200 --> 00:19:43,160 Speaker 1: conservatively than you would one of those other scenarios. Yeah, 409 00:19:43,240 --> 00:19:44,919 Speaker 1: And I mean something else too. If you have a 410 00:19:44,960 --> 00:19:48,320 Speaker 1: partner and you're going into potentially buying a home together, 411 00:19:48,560 --> 00:19:50,439 Speaker 1: you need to know their risk profile as well, and 412 00:19:50,600 --> 00:19:52,800 Speaker 1: you need to know how set they are on purchasing 413 00:19:53,200 --> 00:19:55,720 Speaker 1: that first home because and how much they would hate 414 00:19:55,720 --> 00:19:59,280 Speaker 1: you exactly. Tesla stock got cut in half within a week, 415 00:19:59,359 --> 00:20:01,359 Speaker 1: you know, So Yeah, because if you know that they 416 00:20:01,400 --> 00:20:03,720 Speaker 1: are much more flexible. Then again, it's not that big 417 00:20:03,720 --> 00:20:06,119 Speaker 1: of a deal maybe to invest conservatively, but if you 418 00:20:06,160 --> 00:20:08,480 Speaker 1: have a partner and they have a very clear goal 419 00:20:08,640 --> 00:20:11,119 Speaker 1: of getting out of this crumby apartment, then you need 420 00:20:11,160 --> 00:20:13,160 Speaker 1: to definitely keep that in mind as well. Yes, for sure. 421 00:20:13,200 --> 00:20:16,760 Speaker 1: All right, Well, Matt, let's continue the real estate real 422 00:20:16,880 --> 00:20:19,760 Speaker 1: estate trade. Yeah, we got a few questions about real 423 00:20:19,880 --> 00:20:22,840 Speaker 1: estate on today's episode. This one is a little more arcane, 424 00:20:23,119 --> 00:20:26,359 Speaker 1: but it provides some insight into how landlord should be 425 00:20:26,640 --> 00:20:30,840 Speaker 1: structuring those real estate those rental real estate purchases. Hi, 426 00:20:31,119 --> 00:20:34,000 Speaker 1: Matt and Joel. My name is Alan and I'm from Brooklyn, 427 00:20:34,000 --> 00:20:38,320 Speaker 1: New York. I currently own a rental duplex house that 428 00:20:38,440 --> 00:20:41,879 Speaker 1: I house hacks for six years. I recently purchased a 429 00:20:41,920 --> 00:20:45,000 Speaker 1: single family home and now lives in it as my 430 00:20:45,080 --> 00:20:50,520 Speaker 1: primary residence. My rental duplex is now tenant occupied and 431 00:20:50,800 --> 00:20:54,600 Speaker 1: the rental unit is listed in my name and the 432 00:20:54,600 --> 00:20:57,360 Speaker 1: mortgage is also onto my name. I have a two 433 00:20:57,400 --> 00:21:00,760 Speaker 1: part question. Part one, is it possi able to change 434 00:21:00,800 --> 00:21:05,280 Speaker 1: the name on my rental unit to see? And part two, 435 00:21:05,840 --> 00:21:08,880 Speaker 1: what are the pros and cons to consider it? Aside 436 00:21:08,920 --> 00:21:13,320 Speaker 1: from the personal liability aspect when converting the house to 437 00:21:13,600 --> 00:21:18,080 Speaker 1: a o C. Thank you, looking forward to hearing your answer. Hey, 438 00:21:18,200 --> 00:21:20,000 Speaker 1: this is a great question, Alan. I love that you've 439 00:21:20,000 --> 00:21:22,679 Speaker 1: you've got a duplex that is fully occupied, and I 440 00:21:22,720 --> 00:21:24,080 Speaker 1: love what your heads at. You know, you've got an 441 00:21:24,119 --> 00:21:26,760 Speaker 1: asset that is producing income for you, and you want 442 00:21:26,760 --> 00:21:28,200 Speaker 1: to make sure that you have the proper measures in 443 00:21:28,240 --> 00:21:30,440 Speaker 1: place to protect your other assets, and so we love 444 00:21:30,480 --> 00:21:33,280 Speaker 1: that that's where you're starting from. So let's quickly discuss 445 00:21:33,320 --> 00:21:36,800 Speaker 1: what an LLC is, and it stands for limited liability 446 00:21:36,800 --> 00:21:40,159 Speaker 1: company LLLC. And by creating a company and letting that 447 00:21:40,200 --> 00:21:43,840 Speaker 1: company owned the home, it creates a helpful buffer for you. Basically, 448 00:21:43,960 --> 00:21:46,879 Speaker 1: let'st's say attendant got injured on the property decided to 449 00:21:46,880 --> 00:21:50,040 Speaker 1: sue you. Uh, they will be suing the LLC, not 450 00:21:50,280 --> 00:21:52,399 Speaker 1: you personally. But here's what you need to keep in 451 00:21:52,400 --> 00:21:55,480 Speaker 1: mind when you're considering this move though, transferring ownership of 452 00:21:55,520 --> 00:21:59,240 Speaker 1: that duplex from your name into an LLC. It sounds 453 00:21:59,240 --> 00:22:01,879 Speaker 1: like a great thing, but your lender, they might not 454 00:22:01,920 --> 00:22:04,440 Speaker 1: be very pumped about it. And that's because the lender 455 00:22:04,520 --> 00:22:08,119 Speaker 1: has less recourse if you stopped making your payments, and 456 00:22:08,160 --> 00:22:11,640 Speaker 1: so transferring title from your name to the LLC could 457 00:22:11,640 --> 00:22:15,639 Speaker 1: trigger a do on sale clause, meaning that the mortgage 458 00:22:15,680 --> 00:22:18,960 Speaker 1: now needs to be paid in full within thirty days. Yeah, 459 00:22:18,960 --> 00:22:21,639 Speaker 1: like the entire amount, like the remaining balance that you have, 460 00:22:21,800 --> 00:22:23,320 Speaker 1: not just like an extra pain which is a fun 461 00:22:23,359 --> 00:22:25,200 Speaker 1: bill to get in the mail. It's like, hey, yeah, 462 00:22:25,200 --> 00:22:26,879 Speaker 1: you made this change and you thought this was just 463 00:22:26,920 --> 00:22:29,239 Speaker 1: a small legal thing for you to to to make 464 00:22:29,280 --> 00:22:30,800 Speaker 1: sure that you were taken care of. It turns out 465 00:22:30,800 --> 00:22:34,320 Speaker 1: we need three within within within thirty days. And I'm 466 00:22:34,320 --> 00:22:37,760 Speaker 1: sure alan as most landlords would would be freaking out 467 00:22:37,760 --> 00:22:39,399 Speaker 1: if that were the case. So that is what you 468 00:22:39,440 --> 00:22:42,600 Speaker 1: need to know about UH ll c s and how 469 00:22:42,800 --> 00:22:48,040 Speaker 1: you know changing ownership can actually trigger an event for 470 00:22:48,080 --> 00:22:50,960 Speaker 1: you that could be a big problem. And so yeah, 471 00:22:51,000 --> 00:22:53,080 Speaker 1: you definitely want to talk to your lender before you 472 00:22:53,160 --> 00:22:55,160 Speaker 1: go through with this. You don't want to get caught 473 00:22:55,200 --> 00:22:56,639 Speaker 1: in a situation like that, so you want to make 474 00:22:56,680 --> 00:22:59,320 Speaker 1: them aware you wanna, and the lender actually will likely 475 00:22:59,359 --> 00:23:01,600 Speaker 1: make you sign if they're okay with you doing that. 476 00:23:01,960 --> 00:23:04,720 Speaker 1: Uh something called a personal guarantee that you will pay 477 00:23:04,720 --> 00:23:08,159 Speaker 1: the mortgage if the LLC can't. And so yeah, it 478 00:23:08,240 --> 00:23:12,080 Speaker 1: really is offering. You just have protection from tenant lawsuits. 479 00:23:12,359 --> 00:23:15,560 Speaker 1: If instead you owned the home outright with no mortgage 480 00:23:15,680 --> 00:23:19,800 Speaker 1: at all, the LLC approach is a slam dog when 481 00:23:19,880 --> 00:23:22,480 Speaker 1: you have a mortgage, though, there's more to consider, So 482 00:23:22,520 --> 00:23:24,560 Speaker 1: we would say, since the main thing you're after here 483 00:23:24,640 --> 00:23:29,040 Speaker 1: is protection of your other assets, there's another good way 484 00:23:29,040 --> 00:23:31,560 Speaker 1: to go about getting that protection that is a little 485 00:23:31,600 --> 00:23:34,560 Speaker 1: more straightforward, and an umbrella policy is what you're gonna 486 00:23:34,600 --> 00:23:36,800 Speaker 1: want to look into. You can get basically like a 487 00:23:36,840 --> 00:23:39,840 Speaker 1: million dollars worth of coverage in the range of something 488 00:23:39,840 --> 00:23:42,640 Speaker 1: like a few hundred bucks a year, and so it's 489 00:23:42,720 --> 00:23:45,520 Speaker 1: cheap insurance. It's enough to shield you well if the 490 00:23:45,560 --> 00:23:48,280 Speaker 1: proverbial crap were to hit the fan, if you know, 491 00:23:48,480 --> 00:23:51,240 Speaker 1: if something terrible does happen. And you know, Matt and 492 00:23:51,280 --> 00:23:53,720 Speaker 1: I been landlords a long time, and we're not saying 493 00:23:53,960 --> 00:23:57,280 Speaker 1: that it's not important to have insurance and to cover yourself. 494 00:23:57,280 --> 00:23:59,879 Speaker 1: It very much is. But this is one of those cases. 495 00:24:00,080 --> 00:24:03,800 Speaker 1: Or umbrella insurance makes the most sense for a whole 496 00:24:03,800 --> 00:24:07,480 Speaker 1: lot of people in a situation like Alan's, because it's cheap, 497 00:24:07,560 --> 00:24:10,360 Speaker 1: it provides a whole lot of coverage in the unlikely 498 00:24:10,400 --> 00:24:13,399 Speaker 1: case that something terrible you you get some sort of 499 00:24:13,680 --> 00:24:16,640 Speaker 1: litigious tenant who says I slipped on the back porch 500 00:24:16,720 --> 00:24:18,440 Speaker 1: and brought my back and now you've got to cover 501 00:24:18,760 --> 00:24:21,600 Speaker 1: all those medical bills thanks to a pesky lawsuit. That's right. 502 00:24:21,840 --> 00:24:24,440 Speaker 1: And one of the benefits of umbrella insurances that since 503 00:24:24,440 --> 00:24:27,800 Speaker 1: it applies to you personally, uh, it applies to other 504 00:24:27,800 --> 00:24:29,800 Speaker 1: things that are not related to real estate as well. 505 00:24:30,240 --> 00:24:33,200 Speaker 1: So that's kind of a little bonus of an umbrella policy. 506 00:24:33,240 --> 00:24:34,600 Speaker 1: But alan you know, back when you were living in 507 00:24:34,640 --> 00:24:36,879 Speaker 1: the duplex, like it probably wasn't a big deal that, 508 00:24:36,920 --> 00:24:38,879 Speaker 1: you know, the rent was paid to you personally, like 509 00:24:38,960 --> 00:24:40,520 Speaker 1: they knew that you own the place, and so you're 510 00:24:40,560 --> 00:24:43,400 Speaker 1: kind of like just venmo me. That's fine. But as 511 00:24:43,400 --> 00:24:46,479 Speaker 1: you've likely seen your wealth grow, like probably significantly over 512 00:24:46,480 --> 00:24:49,679 Speaker 1: the past several years, I understand the desire to distance 513 00:24:49,720 --> 00:24:52,480 Speaker 1: yourself not only from the day to day operations of 514 00:24:52,520 --> 00:24:55,560 Speaker 1: the property, but legally as well. It just makes everything 515 00:24:55,560 --> 00:24:58,159 Speaker 1: seem a little more professional. Uh. And so if you 516 00:24:58,240 --> 00:25:01,240 Speaker 1: do end up forming an LLC and transferring the property 517 00:25:01,280 --> 00:25:03,480 Speaker 1: to that new LLC, you want to make sure that 518 00:25:03,520 --> 00:25:06,760 Speaker 1: your lease with tenants reflects that rent will also need 519 00:25:06,800 --> 00:25:08,840 Speaker 1: to be paid to that LLC. And you know, you'll 520 00:25:08,840 --> 00:25:11,280 Speaker 1: need to have a separate bank account as well. But 521 00:25:11,600 --> 00:25:13,880 Speaker 1: either one of these scenarios, whether you're looking at the 522 00:25:14,040 --> 00:25:17,120 Speaker 1: LLC or taking out an umbrella policy, both of those 523 00:25:17,119 --> 00:25:19,240 Speaker 1: can be a great option for you, but make sure 524 00:25:19,280 --> 00:25:22,280 Speaker 1: you perform your due diligence. Uh. In this case, you're 525 00:25:22,280 --> 00:25:24,720 Speaker 1: talking about an asset that's worth a lot of money, 526 00:25:24,720 --> 00:25:27,560 Speaker 1: and with your net worth having most likely gone up 527 00:25:27,560 --> 00:25:29,200 Speaker 1: over the past five If there's anything we know about 528 00:25:29,400 --> 00:25:32,520 Speaker 1: Brooklyn real estate over the over the past several years, 529 00:25:32,520 --> 00:25:34,680 Speaker 1: this is uh. I think Alan was able to jump 530 00:25:34,760 --> 00:25:37,680 Speaker 1: on that bandwagon and he's a part of that hipster Brooklyn. 531 00:25:37,760 --> 00:25:40,360 Speaker 1: This this isn't Brooklyn from the seventies and the eighties. Uh. 532 00:25:40,400 --> 00:25:42,359 Speaker 1: And so there's a lot of money at stake, and 533 00:25:42,359 --> 00:25:43,760 Speaker 1: so you want to make sure that you've covered all 534 00:25:43,800 --> 00:25:46,120 Speaker 1: your bases. Yeah, no doubt. And either one of these 535 00:25:46,200 --> 00:25:48,320 Speaker 1: routes could be most effective for you, but there are 536 00:25:48,320 --> 00:25:51,080 Speaker 1: important things to consider based on either route you go. 537 00:25:51,320 --> 00:25:52,919 Speaker 1: All right, Matt, We got a couple more questions to 538 00:25:52,920 --> 00:25:54,639 Speaker 1: get to getting away from the real estate stuff here 539 00:25:54,640 --> 00:25:57,560 Speaker 1: for a while, including a listener who wants to volunteer 540 00:25:57,840 --> 00:26:00,760 Speaker 1: in his community. How does he spread financial knowledge to 541 00:26:01,200 --> 00:26:03,800 Speaker 1: the masses. Well, we'll talk about that and more right 542 00:26:03,840 --> 00:26:15,080 Speaker 1: after this break. All right, we're back from the break. 543 00:26:15,119 --> 00:26:16,919 Speaker 1: That's enough about real estates. We had a lot of 544 00:26:16,920 --> 00:26:19,160 Speaker 1: real estate there on the first half of this episode. 545 00:26:19,440 --> 00:26:21,359 Speaker 1: But let's hear now from a listener who has a 546 00:26:21,440 --> 00:26:24,919 Speaker 1: question about a retirement account. Hi, Matt and Joel, this 547 00:26:24,960 --> 00:26:27,879 Speaker 1: is Addie from Portland, Maine. Have a question regarding employer 548 00:26:27,960 --> 00:26:31,520 Speaker 1: match retirement accounts. And I've been maxing out my roth 549 00:26:31,600 --> 00:26:34,480 Speaker 1: Ira with Wealth Front for the past four years. I 550 00:26:34,520 --> 00:26:36,840 Speaker 1: have a new employer who offers a company match for 551 00:26:36,920 --> 00:26:40,439 Speaker 1: either a traditional for owen K or roth Ira. I 552 00:26:40,480 --> 00:26:42,760 Speaker 1: currently have my traditional for owen Ca set up with 553 00:26:42,760 --> 00:26:45,679 Speaker 1: my company, and this is the account that they're contributing to. 554 00:26:46,640 --> 00:26:48,760 Speaker 1: Is it worth me having my employer match my roth 555 00:26:48,840 --> 00:26:52,040 Speaker 1: Ira instead of my traditional for owen K even though 556 00:26:52,040 --> 00:26:54,639 Speaker 1: the contribution would be less based on the six thousand 557 00:26:54,680 --> 00:26:58,040 Speaker 1: dollar contribution limit per year. I'm hoping my higher earning 558 00:26:58,119 --> 00:27:00,440 Speaker 1: years or ahead of me based on my age. I'm 559 00:27:00,480 --> 00:27:02,600 Speaker 1: just not sure which one makes more sense for me 560 00:27:02,720 --> 00:27:05,680 Speaker 1: right now. I know you've mentioned going to Maine for 561 00:27:05,800 --> 00:27:08,520 Speaker 1: vacation before, but if you're ever back there, definitely check 562 00:27:08,560 --> 00:27:12,200 Speaker 1: out main beer company in Freeport. Thanks for all your help, Matt. 563 00:27:12,240 --> 00:27:14,159 Speaker 1: Of course, yes, we both have been to Maine, but 564 00:27:14,320 --> 00:27:17,200 Speaker 1: I specifically has been to Maine Beer Company. You always 565 00:27:17,200 --> 00:27:20,000 Speaker 1: got a one on me. So Kate and I were there. 566 00:27:20,040 --> 00:27:22,520 Speaker 1: We're up there for a little trip and we saw 567 00:27:22,560 --> 00:27:25,119 Speaker 1: it from the interstate or whatever highway we're on. I 568 00:27:25,119 --> 00:27:26,840 Speaker 1: don't even know if we were planning to stop there, 569 00:27:26,840 --> 00:27:29,000 Speaker 1: but because it was so drive through the barricade, I 570 00:27:29,000 --> 00:27:31,199 Speaker 1: mean literally, we were like, oh, that's I know that 571 00:27:31,240 --> 00:27:33,439 Speaker 1: beer company, and so we pulled over. You know, you 572 00:27:33,480 --> 00:27:36,520 Speaker 1: see the glow of beer sign in the distance. We 573 00:27:36,560 --> 00:27:38,560 Speaker 1: have kind of like a spidy sense for good craft 574 00:27:38,560 --> 00:27:42,000 Speaker 1: beer too, Like I felt the tingle in my fingertips. Yeah, 575 00:27:42,040 --> 00:27:43,480 Speaker 1: pulled in there. I got some good beer. I think 576 00:27:43,520 --> 00:27:47,480 Speaker 1: we had lunch among well, we had lunch, but like 577 00:27:47,520 --> 00:27:51,359 Speaker 1: the beer specifically, and they've had a great double called 578 00:27:51,440 --> 00:27:54,320 Speaker 1: dinner as well. Kind of a confusing naming convention. They 579 00:27:54,320 --> 00:27:55,960 Speaker 1: didn't have that one on hand. Actually, Well, you know, 580 00:27:56,000 --> 00:27:58,639 Speaker 1: I just met a fellow parent at our daughter school 581 00:27:58,760 --> 00:28:01,200 Speaker 1: and he's from Maine, and we just like nerded out 582 00:28:01,240 --> 00:28:03,560 Speaker 1: about how great the beer scene is there, and there's 583 00:28:03,600 --> 00:28:06,080 Speaker 1: just so many great breweries some good stuff worth visiting. 584 00:28:06,359 --> 00:28:08,679 Speaker 1: And I feel like, yeah, I hate going back to 585 00:28:08,720 --> 00:28:11,480 Speaker 1: the same place, but I loved made so much I'm 586 00:28:11,480 --> 00:28:13,240 Speaker 1: more than willing to go back. It was just it 587 00:28:13,320 --> 00:28:14,840 Speaker 1: was a really fun trat. I feel you. All right, 588 00:28:14,880 --> 00:28:18,960 Speaker 1: let's let's talk about ADDIE's question. And ADDIE's been maxing 589 00:28:18,960 --> 00:28:20,960 Speaker 1: out her rath I ray for four years. Now. That's 590 00:28:21,119 --> 00:28:24,280 Speaker 1: that's pretty awesome. That's spectacular. And she started at the 591 00:28:24,320 --> 00:28:27,080 Speaker 1: age of twenty three, which makes it it's awesome that 592 00:28:27,160 --> 00:28:29,679 Speaker 1: much more impressive. And I would say, it's amazing how 593 00:28:29,760 --> 00:28:32,280 Speaker 1: much wealth you can create even if that's the only 594 00:28:32,320 --> 00:28:35,560 Speaker 1: account you ever contributed to, like six thousand dollars a 595 00:28:35,640 --> 00:28:39,600 Speaker 1: year for thirty years, that that ends up being a 596 00:28:39,640 --> 00:28:41,880 Speaker 1: lot of money, especially as that money is growing and 597 00:28:41,880 --> 00:28:45,200 Speaker 1: working for you and compounding and so yeah, let's let's 598 00:28:45,240 --> 00:28:47,960 Speaker 1: let's kind of run the numbers to see how powerful 599 00:28:48,000 --> 00:28:50,880 Speaker 1: that compounding interest can be. If an eighteen year old 600 00:28:51,080 --> 00:28:53,720 Speaker 1: started maxing out their roth IRA uh, and they did 601 00:28:53,760 --> 00:28:56,160 Speaker 1: this until they were thirty years old, so just literally 602 00:28:56,280 --> 00:28:58,560 Speaker 1: twelve years twelve years of investing. Yeah, and and they 603 00:28:58,600 --> 00:29:01,320 Speaker 1: never contributed to that account ever. Again, they would have 604 00:29:01,480 --> 00:29:04,560 Speaker 1: over a million dollars over one point one million dollars 605 00:29:04,600 --> 00:29:06,680 Speaker 1: in fact, by the time they reached the age of 606 00:29:06,720 --> 00:29:08,920 Speaker 1: sixty five. So addie, I mean, I know you didn't 607 00:29:08,920 --> 00:29:11,000 Speaker 1: start when you were eighteen, just shortly after that, but 608 00:29:11,320 --> 00:29:14,800 Speaker 1: just realize that only a handful of years, just over 609 00:29:14,880 --> 00:29:17,440 Speaker 1: a decade of investing, of maxing that account out can 610 00:29:17,440 --> 00:29:20,960 Speaker 1: be powerful in the long run. And that's just assuming 611 00:29:20,960 --> 00:29:25,080 Speaker 1: a basic seven percent rate of return, nothing spectacular, no empty, 612 00:29:25,120 --> 00:29:27,920 Speaker 1: empty promises over here, I would say that's very conservative, yes, 613 00:29:27,960 --> 00:29:30,960 Speaker 1: And so yeah, the STP has actually returned over nine 614 00:29:30,960 --> 00:29:33,760 Speaker 1: percent over the last forty years, and over twelve percent 615 00:29:34,240 --> 00:29:37,800 Speaker 1: assuming reinvested dividends. So yeah, if the market continues at 616 00:29:37,840 --> 00:29:40,680 Speaker 1: a pace like that, you're looking at over seven million dollars, 617 00:29:40,680 --> 00:29:43,320 Speaker 1: which is insane. It's just crazy to think about the 618 00:29:43,360 --> 00:29:45,920 Speaker 1: power of a wrath here. I think sometimes people underestimate 619 00:29:45,960 --> 00:29:50,160 Speaker 1: because the contribution limits are low, at least when we're 620 00:29:50,200 --> 00:29:52,400 Speaker 1: comparing to some of the other retirement accounts where you 621 00:29:52,400 --> 00:29:56,160 Speaker 1: can contribute dollars or more in a given year. But 622 00:29:56,280 --> 00:29:59,239 Speaker 1: even just the rath I RA by itself can be 623 00:29:59,360 --> 00:30:01,560 Speaker 1: really really power for this right, and especially if you're 624 00:30:01,560 --> 00:30:04,280 Speaker 1: only looking at of conservative seven percent rate of return 625 00:30:04,720 --> 00:30:06,640 Speaker 1: the nine percent number that you gave in the twelve 626 00:30:06,640 --> 00:30:09,640 Speaker 1: percent if those dividends were reinvested. I think that's a 627 00:30:09,720 --> 00:30:12,000 Speaker 1: number that I'm going to keep in mind more often 628 00:30:12,480 --> 00:30:16,040 Speaker 1: because I think I think the market, our world has 629 00:30:16,040 --> 00:30:18,960 Speaker 1: just changed significantly over the past hundred years, and I 630 00:30:19,000 --> 00:30:21,160 Speaker 1: feel like the past forty years are more indicative of 631 00:30:21,200 --> 00:30:24,440 Speaker 1: where our market is going. Not specifically making any predictions here, 632 00:30:24,440 --> 00:30:27,240 Speaker 1: but I'm just saying that we always focus on the 633 00:30:27,240 --> 00:30:29,800 Speaker 1: seven percent, but the fact that we've effectively had over 634 00:30:29,800 --> 00:30:31,840 Speaker 1: twelve percent over the past forty years, I think that's 635 00:30:31,880 --> 00:30:33,680 Speaker 1: something that's important to keep in mind when it comes 636 00:30:33,720 --> 00:30:37,040 Speaker 1: to calculating compound interest. And granted that's assuming someone only 637 00:30:37,080 --> 00:30:40,760 Speaker 1: maxes out just their rath ira and only for twelve years. 638 00:30:41,240 --> 00:30:43,400 Speaker 1: We like more of the all of the above approach 639 00:30:43,880 --> 00:30:46,080 Speaker 1: so that you can reach financial independence even more quickly. 640 00:30:46,320 --> 00:30:48,400 Speaker 1: But Addie, what you're just doing with your roth ira, 641 00:30:48,560 --> 00:30:52,040 Speaker 1: that's already fantastic. But to your question, Uh, first of all, 642 00:30:52,080 --> 00:30:54,000 Speaker 1: I think that we're actually mixing up some terms here. 643 00:30:54,400 --> 00:30:57,560 Speaker 1: Since the rath i ra a is an individual retirement account, 644 00:30:58,000 --> 00:31:01,560 Speaker 1: your employer wouldn't be offering I'm match for that account. Specifically, 645 00:31:01,800 --> 00:31:05,080 Speaker 1: they're probably offering to match a Rath four win K 646 00:31:05,640 --> 00:31:07,760 Speaker 1: if you ought for that over the traditional one that 647 00:31:07,800 --> 00:31:09,880 Speaker 1: you've been contributing to. You mentioned that this is a 648 00:31:09,880 --> 00:31:12,040 Speaker 1: new employer, and so I'm assuming that you may not 649 00:31:12,120 --> 00:31:13,840 Speaker 1: have had access to a four O one K before. 650 00:31:13,880 --> 00:31:16,560 Speaker 1: But the language that we can use sometimes, I think 651 00:31:16,640 --> 00:31:19,360 Speaker 1: can often be confusing because you'll say, oh, a traditional 652 00:31:19,440 --> 00:31:21,360 Speaker 1: four O one K, and there's a Roth option as well. 653 00:31:21,680 --> 00:31:24,040 Speaker 1: And when we talk about Roths, we're often referring to 654 00:31:24,160 --> 00:31:27,240 Speaker 1: Roth iras. But within the context of talking about a 655 00:31:27,280 --> 00:31:30,719 Speaker 1: work sponsored retirement accounts, uh, when they follow that phrase 656 00:31:30,760 --> 00:31:33,120 Speaker 1: with Rath, are typically referring to a Roth four owen k. 657 00:31:33,360 --> 00:31:36,880 Speaker 1: And that's just what it is tricky about the terminology 658 00:31:36,920 --> 00:31:38,920 Speaker 1: that we have used to define these accounts and how 659 00:31:38,920 --> 00:31:41,920 Speaker 1: many accounts we have open to us. And I kind 660 00:31:41,920 --> 00:31:44,920 Speaker 1: of wish she was simpler just for the lay person 661 00:31:44,960 --> 00:31:47,560 Speaker 1: out there, because yeah, even as we describe it, we 662 00:31:47,640 --> 00:31:50,800 Speaker 1: understand that we probably confuse people on accident, and so 663 00:31:51,080 --> 00:31:53,480 Speaker 1: it's kind of like an embarrassment of riches, right right, right, 664 00:31:53,760 --> 00:31:56,480 Speaker 1: But yeah, all signs would point to contributing to the 665 00:31:56,560 --> 00:31:59,320 Speaker 1: Roth version of your four oh one K. Instead of 666 00:31:59,400 --> 00:32:02,160 Speaker 1: the tradition. No one at least from where we're sitting, 667 00:32:02,480 --> 00:32:05,440 Speaker 1: if that's what we're talking about. And uh, let's let's 668 00:32:05,440 --> 00:32:08,320 Speaker 1: discuss the main reasons why tax rates are at least 669 00:32:08,320 --> 00:32:12,040 Speaker 1: by historical standards, reasonably low these days. We can't predict 670 00:32:12,080 --> 00:32:16,120 Speaker 1: the future. Although Matt tries on occasion, uh, twelve percent 671 00:32:16,240 --> 00:32:20,360 Speaker 1: baby in perpetuity here, the next Bernie made off and 672 00:32:20,560 --> 00:32:22,960 Speaker 1: uh and and so yeah, basically, are they gonna rise? 673 00:32:23,000 --> 00:32:25,000 Speaker 1: Are they gonna follow them? Coming years? I mean our 674 00:32:25,040 --> 00:32:28,960 Speaker 1: guests is taxes will go up to cover our increased 675 00:32:29,200 --> 00:32:31,880 Speaker 1: obligations that we're taking on as a country. Likely, we 676 00:32:31,920 --> 00:32:34,960 Speaker 1: also can't predict that. And you mentioned that your higher 677 00:32:35,000 --> 00:32:37,400 Speaker 1: earning years or ahead of you, since you're only twenty seven, 678 00:32:37,600 --> 00:32:39,800 Speaker 1: I bet you're probably right. So we would say, take 679 00:32:39,840 --> 00:32:43,600 Speaker 1: advantage of the years where your tax rate is lower, 680 00:32:43,880 --> 00:32:46,400 Speaker 1: pay the tax now, put that money in the roth 681 00:32:46,560 --> 00:32:48,680 Speaker 1: version of your four oh one K, and then never 682 00:32:48,720 --> 00:32:51,360 Speaker 1: pay tax on that money again or on the earnings 683 00:32:51,360 --> 00:32:54,680 Speaker 1: at that account receives. And then once you're thirty seven, 684 00:32:54,680 --> 00:32:57,640 Speaker 1: you're absolutely crushing it. You might potentially want to revert 685 00:32:57,680 --> 00:32:59,640 Speaker 1: back to a traditional four oh one K. That all 686 00:32:59,680 --> 00:33:01,880 Speaker 1: depend on how things have changed, you know, in the 687 00:33:01,880 --> 00:33:04,560 Speaker 1: next ten years. But for now, we would say the 688 00:33:04,640 --> 00:33:07,360 Speaker 1: Rath is more appealing. Rath four and K is a 689 00:33:07,440 --> 00:33:10,120 Speaker 1: killer vehicle, and it's one of our our favorite places 690 00:33:10,160 --> 00:33:13,000 Speaker 1: for people to be investing their money for the future. Yeah, 691 00:33:13,080 --> 00:33:15,600 Speaker 1: and unlike the roth Ira example that we gave earlier, 692 00:33:15,800 --> 00:33:18,720 Speaker 1: you're no longer limited to just saving six thousand dollars 693 00:33:18,960 --> 00:33:21,840 Speaker 1: four one K. Contribution limits for next year are twenty 694 00:33:21,880 --> 00:33:24,880 Speaker 1: thousand and so just imagine how much you'll be able 695 00:33:24,920 --> 00:33:27,480 Speaker 1: to sock away if you can max out that account 696 00:33:27,480 --> 00:33:29,400 Speaker 1: as well. It's more than three times as much, Matthew. 697 00:33:29,760 --> 00:33:32,640 Speaker 1: It's it's impressive. Like, yeah, just think about the numbers 698 00:33:32,640 --> 00:33:35,520 Speaker 1: we gave earlier, and they're basically on steroids. If you're 699 00:33:35,560 --> 00:33:37,920 Speaker 1: talking about contributing to a ROTH four O one K 700 00:33:38,040 --> 00:33:39,920 Speaker 1: as opposed to a roth Ira, you may not just 701 00:33:39,960 --> 00:33:42,959 Speaker 1: be a millionaire. You might be a billionaire that might 702 00:33:43,000 --> 00:33:46,960 Speaker 1: be stretching it. But either way, prioritizing these two accounts 703 00:33:47,280 --> 00:33:50,440 Speaker 1: is going to make an enormous difference in your financial future. 704 00:33:50,840 --> 00:33:52,680 Speaker 1: And the cool thing is too, you actually are still 705 00:33:52,680 --> 00:33:55,800 Speaker 1: going to have some pre tax money being saved up simultaneously, 706 00:33:56,080 --> 00:33:58,240 Speaker 1: because even if you choose to go with the RATH 707 00:33:58,400 --> 00:34:01,520 Speaker 1: four oh and K with a post tax dollars. Your 708 00:34:01,560 --> 00:34:04,200 Speaker 1: employers match dollars are going to be put in pre 709 00:34:04,320 --> 00:34:06,480 Speaker 1: tax and so you'll still be getting some of the 710 00:34:06,560 --> 00:34:09,880 Speaker 1: tax diversification. But you're baking hard, of course, on the 711 00:34:09,920 --> 00:34:12,120 Speaker 1: likelihood that your personal tax rate is going to go up, 712 00:34:12,480 --> 00:34:15,040 Speaker 1: and this will shield you from the most amounts of 713 00:34:15,120 --> 00:34:17,960 Speaker 1: taxes over time, no doubt, Matt. We're really talking to 714 00:34:18,040 --> 00:34:20,880 Speaker 1: somebody here in Addie who has all the habits of 715 00:34:20,920 --> 00:34:23,359 Speaker 1: being a good saver and investor, and we're talking about 716 00:34:23,400 --> 00:34:26,520 Speaker 1: optimizing it to reduce taxes. And we think that the 717 00:34:26,600 --> 00:34:29,279 Speaker 1: RATH four one K is the best way to do that, 718 00:34:29,320 --> 00:34:32,680 Speaker 1: putting as much money as you possibly can into that account, 719 00:34:32,960 --> 00:34:34,920 Speaker 1: at least for the time being. And Addie, once you 720 00:34:34,920 --> 00:34:38,279 Speaker 1: start making like four a year, get back to us, 721 00:34:38,280 --> 00:34:40,120 Speaker 1: because I don't know the advice might change at that 722 00:34:40,120 --> 00:34:44,120 Speaker 1: point in time, But best of luck growing those assets 723 00:34:44,160 --> 00:34:46,960 Speaker 1: for your future. And Matt, let's get to the next question. 724 00:34:47,040 --> 00:34:51,200 Speaker 1: This one is about volunteering to use your financial knowledge 725 00:34:51,239 --> 00:34:55,799 Speaker 1: to help others. Hey, Joe and Matt Snake in Oklahoma. 726 00:34:56,239 --> 00:34:59,440 Speaker 1: I was calling asked the question today. I've been looking 727 00:34:59,480 --> 00:35:04,200 Speaker 1: to uh basically volunteer to do financial coaching or some 728 00:35:04,280 --> 00:35:07,920 Speaker 1: sort of financial budgeting or helping people with their finances 729 00:35:07,960 --> 00:35:11,360 Speaker 1: for free. I haven't been able to really find a 730 00:35:11,719 --> 00:35:14,239 Speaker 1: place to volunteer my skills at least one that is 731 00:35:14,480 --> 00:35:17,160 Speaker 1: message be back, And so I would like to know, like, 732 00:35:17,200 --> 00:35:19,920 Speaker 1: if you guys, do any places out there that currently 733 00:35:19,920 --> 00:35:24,840 Speaker 1: they're taking volunteers appreciate you can't to hear your guys answer, Hey, 734 00:35:24,880 --> 00:35:27,160 Speaker 1: we love that you are wanting to do some volunteering. 735 00:35:27,239 --> 00:35:30,319 Speaker 1: This is something that we are all about. Specifically, there's 736 00:35:30,360 --> 00:35:33,560 Speaker 1: a huge need for financial education, for financial literacy because 737 00:35:33,600 --> 00:35:35,759 Speaker 1: most of us, we obviously didn't receive much of this 738 00:35:35,840 --> 00:35:37,760 Speaker 1: growing up. You know, you you learn a few hearings 739 00:35:39,640 --> 00:35:41,600 Speaker 1: from your parents. I mean I learned some stuff from 740 00:35:41,600 --> 00:35:44,400 Speaker 1: my parents, but when it came to actual ammomation, I 741 00:35:44,440 --> 00:35:47,879 Speaker 1: love you, but I didn't really. Uh. They don't actually 742 00:35:47,920 --> 00:35:49,600 Speaker 1: listen to the show, do they? Now, Okay, that's fine, 743 00:35:49,640 --> 00:35:51,640 Speaker 1: it's fine. They know I love them though even if 744 00:35:51,640 --> 00:35:54,200 Speaker 1: they did, Yes, they do. But uh, you know, like 745 00:35:54,280 --> 00:35:56,760 Speaker 1: I feel like the education we do have, it's very informal, 746 00:35:56,920 --> 00:35:58,799 Speaker 1: and we don't have it laid out to us in 747 00:35:58,840 --> 00:36:01,520 Speaker 1: the form of a course or a class I definitely 748 00:36:01,560 --> 00:36:03,359 Speaker 1: did when I was in high school or any type 749 00:36:03,400 --> 00:36:05,600 Speaker 1: of schooling, to be honest. And so because of that, 750 00:36:05,600 --> 00:36:07,560 Speaker 1: we've got to learn on the fly in adulthood, based 751 00:36:07,600 --> 00:36:09,759 Speaker 1: out of the necessity to learn how to do some 752 00:36:09,760 --> 00:36:11,840 Speaker 1: of these things. And we do this largely through trial 753 00:36:11,920 --> 00:36:15,560 Speaker 1: and error mistakes. Yeah, and so Nates, we we love 754 00:36:15,600 --> 00:36:17,279 Speaker 1: that this is a goal of years. But you know, 755 00:36:17,320 --> 00:36:20,160 Speaker 1: let's specifically talk about maybe some different ways that you 756 00:36:20,200 --> 00:36:23,960 Speaker 1: can volunteer your financial knowledge. Let's do it. And and yeah, man, 757 00:36:24,000 --> 00:36:25,839 Speaker 1: I think one that's a great goal. I think any 758 00:36:25,840 --> 00:36:29,920 Speaker 1: time you have specialized knowledge, anytime you can help people out, 759 00:36:30,200 --> 00:36:32,480 Speaker 1: I think it's really important to see, like, what we've 760 00:36:32,480 --> 00:36:35,320 Speaker 1: been given, how can we give back. If it's monetary 761 00:36:35,320 --> 00:36:36,919 Speaker 1: assets and you can give in that way, that's great. 762 00:36:36,920 --> 00:36:39,680 Speaker 1: If you've got uh specialized knowledge, we would say, if 763 00:36:39,680 --> 00:36:42,120 Speaker 1: there's any way that you can share that with people 764 00:36:42,520 --> 00:36:45,200 Speaker 1: who are coming behind you, we think that's important too. 765 00:36:45,480 --> 00:36:47,839 Speaker 1: And yeah, here's how I would start, Nate. I would 766 00:36:47,840 --> 00:36:51,120 Speaker 1: start by contacting nonprofits where you live that are close 767 00:36:51,120 --> 00:36:53,440 Speaker 1: by that you align with their mission in order to 768 00:36:53,600 --> 00:36:57,720 Speaker 1: offer your services. For instance, there's an after school program 769 00:36:57,760 --> 00:37:01,280 Speaker 1: for kids in our neighborhood, literally liking distance from my house. 770 00:37:01,560 --> 00:37:03,600 Speaker 1: Would they want someone to come in and teach those 771 00:37:03,600 --> 00:37:06,000 Speaker 1: middle and high schoolers about personal finance as like a 772 00:37:06,160 --> 00:37:10,040 Speaker 1: special activity once every semester. My guess is they would 773 00:37:10,040 --> 00:37:12,600 Speaker 1: say yes, right if I make the offer, So maybe 774 00:37:12,640 --> 00:37:15,040 Speaker 1: I should do that. And then I was actually talking 775 00:37:15,080 --> 00:37:19,000 Speaker 1: to how the money listener. His name's Joe recently and 776 00:37:19,160 --> 00:37:22,200 Speaker 1: he just went to teach personal finance at a foster 777 00:37:22,280 --> 00:37:24,960 Speaker 1: care home right around the corner from where he lives, 778 00:37:25,080 --> 00:37:28,200 Speaker 1: because he's just that passionate about personal finance and seeing 779 00:37:28,239 --> 00:37:30,440 Speaker 1: other people get a leg up and to be able 780 00:37:30,480 --> 00:37:32,480 Speaker 1: to learn without making some of those mistakes that are 781 00:37:32,560 --> 00:37:34,840 Speaker 1: often made. And I think that's awesome, Like big props 782 00:37:34,840 --> 00:37:37,000 Speaker 1: to Joe for doing that, And it makes me actually 783 00:37:37,000 --> 00:37:39,560 Speaker 1: want to do more in person volunteering to share the 784 00:37:39,600 --> 00:37:41,919 Speaker 1: knowledge that Matt and I have. It's really really fun 785 00:37:41,960 --> 00:37:44,359 Speaker 1: to put this podcast out and it is something we 786 00:37:44,480 --> 00:37:47,799 Speaker 1: enjoy a whole lot, but getting to teach people in 787 00:37:47,880 --> 00:37:50,319 Speaker 1: person and see their faces lighted up as they make 788 00:37:50,360 --> 00:37:52,719 Speaker 1: that connection between what you're talking about and their own 789 00:37:52,719 --> 00:37:56,000 Speaker 1: personal lives, that's that's really fulfilling to most. Definitely, yes, 790 00:37:56,040 --> 00:37:59,719 Speaker 1: they don't necessarily look towards organizations that are specializing and 791 00:37:59,760 --> 00:38:02,919 Speaker 1: t money already, because you can look to the nonprofits 792 00:38:02,920 --> 00:38:05,319 Speaker 1: that are meeting other needs well, but then could use 793 00:38:05,360 --> 00:38:08,520 Speaker 1: the support that you could provide bringing that financial education 794 00:38:08,560 --> 00:38:11,640 Speaker 1: to a specific group of folks. And another way to 795 00:38:11,640 --> 00:38:15,200 Speaker 1: find a volunteer gig using your robust money knowledge here 796 00:38:15,280 --> 00:38:18,440 Speaker 1: is to go through Junior Achievement UH. And so there 797 00:38:18,480 --> 00:38:20,680 Speaker 1: are local chapters all across the country and you can 798 00:38:20,680 --> 00:38:25,120 Speaker 1: actually find opportunities for teaching financial literacy to UH kids 799 00:38:25,160 --> 00:38:28,040 Speaker 1: of all ages like elementary, middle, high school kids. And 800 00:38:28,040 --> 00:38:30,480 Speaker 1: the great thing is that you don't need a special 801 00:38:30,520 --> 00:38:35,040 Speaker 1: degree or any special designation to volunteer and participate. This 802 00:38:35,120 --> 00:38:38,239 Speaker 1: would be a great way to partner with an organization. 803 00:38:38,600 --> 00:38:41,399 Speaker 1: The ability to get plugged in with an organization that's 804 00:38:41,440 --> 00:38:43,400 Speaker 1: that's already moving is a great way to get that 805 00:38:43,440 --> 00:38:46,239 Speaker 1: ball rolling for you. Yeah, And I think realizing that 806 00:38:46,280 --> 00:38:48,719 Speaker 1: you don't have to have a special degree or some 807 00:38:48,800 --> 00:38:52,399 Speaker 1: sort of certificate is helpful because I think that's probably 808 00:38:52,440 --> 00:38:54,600 Speaker 1: what holds a lot of people back from volunteering. And 809 00:38:54,680 --> 00:38:56,279 Speaker 1: you need to be a CFP. Yeah, they're like, I 810 00:38:56,440 --> 00:38:58,279 Speaker 1: don't have the years of schooling I just have a 811 00:38:58,280 --> 00:39:01,600 Speaker 1: passion for it. But sometimes those make the best volunteers 812 00:39:01,600 --> 00:39:04,240 Speaker 1: who are able to best communicate some of the principles 813 00:39:04,239 --> 00:39:08,120 Speaker 1: that they've learned precisely because they're passionate and not because 814 00:39:08,400 --> 00:39:10,760 Speaker 1: they have a ton of book learning in that area. 815 00:39:10,800 --> 00:39:12,680 Speaker 1: As long as they know that you don't have any 816 00:39:12,680 --> 00:39:16,760 Speaker 1: actual degrees the certification, they're going to be forthcoming about that. 817 00:39:16,560 --> 00:39:18,719 Speaker 1: You don't pretend that you've got all the letters behind 818 00:39:18,719 --> 00:39:21,239 Speaker 1: your name when you don't. Yes, and so yeah, we 819 00:39:21,280 --> 00:39:24,920 Speaker 1: would say teaching kids in particular about personal finance is 820 00:39:25,000 --> 00:39:28,200 Speaker 1: a fantastic route to take because, yeah, imagine the impact 821 00:39:28,280 --> 00:39:30,960 Speaker 1: you could have if some of those kids middle and 822 00:39:31,040 --> 00:39:34,200 Speaker 1: high school, even elementary can learn some of the basics 823 00:39:34,320 --> 00:39:37,800 Speaker 1: like avoiding credit card debt before they have the option 824 00:39:37,920 --> 00:39:40,400 Speaker 1: even to start putting charges on a credit card. You know, 825 00:39:40,440 --> 00:39:42,839 Speaker 1: it can make a huge difference if they take part 826 00:39:42,920 --> 00:39:46,359 Speaker 1: in a compelling presentation at a really young age. So 827 00:39:46,440 --> 00:39:49,319 Speaker 1: if you find that to be an interesting route to go, 828 00:39:49,360 --> 00:39:51,840 Speaker 1: you can even approach your nearby school's principle and you 829 00:39:51,840 --> 00:39:53,760 Speaker 1: can see if there's a way that you can bring 830 00:39:53,840 --> 00:39:57,760 Speaker 1: your passion for financial education to like a larger grade 831 00:39:57,760 --> 00:40:01,040 Speaker 1: wide or even school wide assembly at some point, and 832 00:40:01,080 --> 00:40:03,399 Speaker 1: in particular because like Matt said, like we don't learn 833 00:40:03,400 --> 00:40:06,239 Speaker 1: about this stuff in school, that's a great place to 834 00:40:06,320 --> 00:40:08,960 Speaker 1: take it. There's also like boy Scout and Girl Scout 835 00:40:09,000 --> 00:40:11,680 Speaker 1: badges in financial literacy. You might be able to help 836 00:40:11,719 --> 00:40:14,040 Speaker 1: out your local boy or Girl Scout troop. Like I 837 00:40:14,080 --> 00:40:16,360 Speaker 1: feel like the world is actually your oyster when it 838 00:40:16,360 --> 00:40:19,080 Speaker 1: comes to using your time to help others learn about 839 00:40:19,080 --> 00:40:21,560 Speaker 1: the stuff. Yeah, and you mentioned kids and credit card debt, 840 00:40:21,600 --> 00:40:24,680 Speaker 1: but imagine opening their eyes to the power of compounding interest. 841 00:40:24,960 --> 00:40:28,080 Speaker 1: Running some of these figures for a kid, and you know, 842 00:40:28,120 --> 00:40:31,520 Speaker 1: if you had the ability to convince them to start 843 00:40:31,560 --> 00:40:34,120 Speaker 1: putting money towards their roth IRA when they were sixteen 844 00:40:34,480 --> 00:40:37,080 Speaker 1: or fifteen, right, imagine with their first job, if they 845 00:40:37,080 --> 00:40:39,560 Speaker 1: started talking away even just like like a couple of 846 00:40:39,600 --> 00:40:42,400 Speaker 1: thousand dollars a year. And I know for high schoolers 847 00:40:42,400 --> 00:40:43,920 Speaker 1: that is a ton of a ton of money. It 848 00:40:43,960 --> 00:40:46,120 Speaker 1: is a lot of money. But over time, the power 849 00:40:46,239 --> 00:40:48,360 Speaker 1: of that money to compound. Those are the kind of 850 00:40:48,440 --> 00:40:52,279 Speaker 1: lessons that are so important to even the first five 851 00:40:52,320 --> 00:40:55,719 Speaker 1: bucks from every paycheck somehow get it. Yeah, And then 852 00:40:55,719 --> 00:40:57,439 Speaker 1: they're like, wait, this is making that connection. I can 853 00:40:57,440 --> 00:41:00,000 Speaker 1: maybe do that. Yeah, well, you know, aside from teaching 854 00:41:00,040 --> 00:41:02,160 Speaker 1: heads to like, if you go to church, you can 855 00:41:02,239 --> 00:41:05,560 Speaker 1: let someone there know that you're interested in helping individuals 856 00:41:05,560 --> 00:41:07,640 Speaker 1: out with their finances. There are just a ton of 857 00:41:07,680 --> 00:41:10,960 Speaker 1: different options available to you. But in addition to you know, 858 00:41:11,040 --> 00:41:13,800 Speaker 1: officially volunteering, I want to point out too that you 859 00:41:13,840 --> 00:41:16,359 Speaker 1: can make sure that personal finance is a topic that 860 00:41:16,520 --> 00:41:19,000 Speaker 1: you and your friends that they're discussing. It might feel 861 00:41:19,040 --> 00:41:20,359 Speaker 1: like that this is one of those things that you're 862 00:41:20,400 --> 00:41:23,399 Speaker 1: not allowed to talk about with your friends. But by 863 00:41:23,440 --> 00:41:26,520 Speaker 1: sharing what you're excited about, right, maybe how you've been 864 00:41:26,520 --> 00:41:29,080 Speaker 1: able to cut back on your spending in order to 865 00:41:29,120 --> 00:41:32,640 Speaker 1: invest more that first step, that transparency. That might be 866 00:41:32,640 --> 00:41:36,040 Speaker 1: the beginning of helping out and coaching friends, which honestly 867 00:41:36,239 --> 00:41:39,400 Speaker 1: like that could even eventually lead to a financial counseling 868 00:41:39,600 --> 00:41:42,520 Speaker 1: side business. This is when this knowledge that you're bringing 869 00:41:42,560 --> 00:41:44,279 Speaker 1: to the table, could you know there could be this 870 00:41:44,320 --> 00:41:48,120 Speaker 1: reciprocal relationship where you're helping them to achieve their goals 871 00:41:48,160 --> 00:41:50,759 Speaker 1: of financial independence. And by the way, this is a 872 00:41:50,840 --> 00:41:53,719 Speaker 1: legit business. Now forget volunteering like you were volunteering, but 873 00:41:53,760 --> 00:41:55,520 Speaker 1: this is such a passion of yours and there is 874 00:41:55,560 --> 00:41:57,319 Speaker 1: such a need for it that it is something that 875 00:41:57,400 --> 00:42:00,279 Speaker 1: is now allowing you to achieve your financial goals even 876 00:42:00,280 --> 00:42:02,560 Speaker 1: sooner as well. Or you've started your own nonprofit coming 877 00:42:02,560 --> 00:42:06,239 Speaker 1: along alongside other nonprofits to say hey, listen, Habitat for 878 00:42:06,320 --> 00:42:10,080 Speaker 1: Humanity my local chapter. Wait, do these new homeowners need 879 00:42:10,280 --> 00:42:13,239 Speaker 1: personal finance education? Let's talk about budgeting for expenses in 880 00:42:13,280 --> 00:42:15,839 Speaker 1: order to maintain this home exactly. I will take over 881 00:42:16,360 --> 00:42:18,560 Speaker 1: from that. My nonprofit will come alongside yours. I mean, 882 00:42:18,680 --> 00:42:22,040 Speaker 1: there's just like, the possibilities are endless, and if you 883 00:42:22,080 --> 00:42:24,160 Speaker 1: have a passion for it um and you you find 884 00:42:24,200 --> 00:42:27,560 Speaker 1: ways to develop that curriculum and to participate in your community. 885 00:42:27,640 --> 00:42:29,640 Speaker 1: I think it's going to be rewarding, and like Matt said, 886 00:42:29,680 --> 00:42:33,240 Speaker 1: it could eventually blow up into becoming something that becomes 887 00:42:33,560 --> 00:42:36,520 Speaker 1: a full time gig for you. So Nate, go exploring, 888 00:42:36,719 --> 00:42:39,759 Speaker 1: find something awesome, and best of luck to you. All right, Matt, 889 00:42:39,840 --> 00:42:41,680 Speaker 1: Let's get back to the beer that we had on 890 00:42:41,719 --> 00:42:44,600 Speaker 1: this episode. This one is called Three Philosophers. It's by 891 00:42:44,680 --> 00:42:48,680 Speaker 1: Omagog Brewing and our friend David down the street, uh 892 00:42:48,840 --> 00:42:50,920 Speaker 1: donated this bottle to the show. Big thanks to our 893 00:42:50,960 --> 00:42:52,960 Speaker 1: good friend David, and uh yeah, what we thoughts on this, 894 00:42:53,000 --> 00:42:56,160 Speaker 1: speer Man, Yes, thank you, David. And this is a 895 00:42:56,200 --> 00:43:00,600 Speaker 1: blend of quadruple ale and Belgian creek ale with cherries. 896 00:43:00,920 --> 00:43:02,520 Speaker 1: I will say when we poured this, it poured nice 897 00:43:02,520 --> 00:43:04,160 Speaker 1: and dark. And one of the things that sets a 898 00:43:04,239 --> 00:43:06,560 Speaker 1: quad apart from a stout is I feel like quads 899 00:43:06,600 --> 00:43:09,040 Speaker 1: are more fizzy. They've got more of that carbonation going on. 900 00:43:09,080 --> 00:43:11,920 Speaker 1: They've got those Belgian yeasts, uh, and with those yeasts 901 00:43:11,920 --> 00:43:14,920 Speaker 1: they bring this fruitiness to some of these darker beers. 902 00:43:14,960 --> 00:43:18,680 Speaker 1: And so it's almost like chocolate covered fruit. Yeah, because 903 00:43:18,719 --> 00:43:20,839 Speaker 1: like you're saying here, fruitiness, and I think your mind 904 00:43:20,880 --> 00:43:23,600 Speaker 1: instantly goes to some of the fruity, other fruity beers 905 00:43:23,600 --> 00:43:25,920 Speaker 1: that you've had. But it's the completely opposite end of 906 00:43:25,960 --> 00:43:28,680 Speaker 1: the fruit spectrum, right. It's more scredly subtle. It's like 907 00:43:28,760 --> 00:43:32,440 Speaker 1: raisins and figs as opposed to like apples and oranges. Yeah. Well, 908 00:43:32,440 --> 00:43:34,040 Speaker 1: and they're I mean they're tasting notes as well. It's 909 00:43:34,040 --> 00:43:37,440 Speaker 1: not like this is a you know, uh, fruited mango 910 00:43:37,520 --> 00:43:40,520 Speaker 1: ale or something like that, like a fruited sour with 911 00:43:40,600 --> 00:43:44,560 Speaker 1: mango where there's like legit mango in it. Oftentimes these 912 00:43:44,640 --> 00:43:47,640 Speaker 1: quote unquote fruits are pretty subtle, but yeah, we poured 913 00:43:47,680 --> 00:43:50,560 Speaker 1: it and for me, man, the what I most noticed 914 00:43:50,600 --> 00:43:53,680 Speaker 1: about this was almost like an apple cider kind of 915 00:43:53,760 --> 00:43:56,280 Speaker 1: vibe going on. Maybe think back to this past follower 916 00:43:56,360 --> 00:43:59,480 Speaker 1: up at the apple orchard picking some apples there were 917 00:43:59,480 --> 00:44:02,239 Speaker 1: barely any year because I guess the frost or something 918 00:44:02,280 --> 00:44:04,319 Speaker 1: like that. But not only did it smell like that, 919 00:44:04,360 --> 00:44:06,080 Speaker 1: but I believe that it tasted that way to me too. 920 00:44:06,120 --> 00:44:08,080 Speaker 1: I don't know if it's because I was thinking that 921 00:44:08,560 --> 00:44:11,440 Speaker 1: you think something spices like the cinnamon that like, yes, 922 00:44:11,560 --> 00:44:14,920 Speaker 1: it's it's was totally going on with with this beer. 923 00:44:15,080 --> 00:44:18,319 Speaker 1: It definitely made it feel like a nice autumn beer. 924 00:44:18,320 --> 00:44:19,880 Speaker 1: I'm glad this was a quad that you and I 925 00:44:19,960 --> 00:44:21,719 Speaker 1: got to enjoy. Buddy. Yeah, I feel like this was 926 00:44:21,760 --> 00:44:24,719 Speaker 1: probably my favorite beer style craft beer style early on 927 00:44:24,880 --> 00:44:27,439 Speaker 1: when I was first kind of getting into craft beer, 928 00:44:27,680 --> 00:44:29,919 Speaker 1: and I still love it. It's very unique. It does 929 00:44:30,000 --> 00:44:32,640 Speaker 1: have just tons of different flavor notes going on all 930 00:44:32,640 --> 00:44:35,920 Speaker 1: at once, nostalgic for you totally think back to uh, 931 00:44:36,080 --> 00:44:38,279 Speaker 1: twelve years ago. Yeah, it really reminds me of going 932 00:44:38,320 --> 00:44:40,759 Speaker 1: to this one beer bar indicator called the Brick Store 933 00:44:40,920 --> 00:44:42,880 Speaker 1: because they specialized in Belgians and I would go there 934 00:44:42,880 --> 00:44:45,520 Speaker 1: and I would get like a really good quad from Belgium, 935 00:44:45,600 --> 00:44:48,480 Speaker 1: and uh, it was always delicious, and so yeah. I 936 00:44:48,520 --> 00:44:51,200 Speaker 1: love how good beer can trigger good memories and this 937 00:44:51,239 --> 00:44:54,759 Speaker 1: one definitely does. So yeah. Thanks again, Dave and Matt. 938 00:44:54,800 --> 00:44:56,920 Speaker 1: That's gonna do it for this episode. For our listeners 939 00:44:56,920 --> 00:44:59,400 Speaker 1: who want the show notes links to anything that we 940 00:44:59,440 --> 00:45:02,120 Speaker 1: mentioned on this episode today, you can go to our 941 00:45:02,120 --> 00:45:04,239 Speaker 1: website at how to money dot com. That's right. We 942 00:45:04,239 --> 00:45:06,000 Speaker 1: would love it if you left us a review over 943 00:45:06,040 --> 00:45:08,880 Speaker 1: at Apple Podcasts or wherever you listen, if you haven't 944 00:45:08,920 --> 00:45:11,480 Speaker 1: done that already, we would greatly appreciate it. Joel. That's 945 00:45:11,480 --> 00:45:13,680 Speaker 1: going to be it for this episode. Until next time. 946 00:45:13,880 --> 00:45:15,880 Speaker 1: Best Friends Out, Best Friends Out,