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

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Speaker 1: and today we're gonna answer some mere listener questions.

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Speaker 2: That's right, buddy, It's Monday, which means we've got to

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Speaker 2: hear for some listeners. We're gonna hear from a specific

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Speaker 2: listener and she is moving back in with her parents,

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Speaker 2: and it may not be for the reason that you're thinking.

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Speaker 2: Another listener has her employer paying for an MBA. Some

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Speaker 2: different considerations there as to maybe how long she should

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Speaker 2: work for that company.

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Speaker 3: Sounds like a nice perk.

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Speaker 2: It is, it is. And we're also gonna hear from

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Speaker 2: somebody else who is interested in getting into investing in

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Speaker 2: real estate, but specifically with his condo. So we've got

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Speaker 2: some thoughts there. Plus we got more to get to today, Bud,

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Speaker 2: condos can be trickier.

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Speaker 1: Too than a single family home. Just uh, and we'll

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Speaker 1: get to why some different considerations exactly. All right, Matt,

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Speaker 1: I just want to call you out real quick on

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Speaker 1: the carpet. Tell all of our listeners when you say

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Speaker 1: on the carpet, you're a liar?

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Speaker 2: Wait what? Okay? So first I was fixated on the

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Speaker 2: on the carpet part. Is that basically like calling out

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Speaker 2: like a dog that uh oh maybe it has like

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Speaker 2: gone to the bathroom. I don't know where that where

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Speaker 2: that comes from? Sorry, immediately lashed onto that.

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Speaker 3: Wow, how did I lie?

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Speaker 1: Okay, so you told listeners that you were not investing

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Speaker 1: this year because you are doing a home renovation and

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Speaker 1: you're saving allocating more money than I don't think for that,

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Speaker 1: don't take on any debt. Yeah, there's a chance we're

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Speaker 1: not going to invest next year as well, because I

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Speaker 1: don't know if you've heard, but home redos cost a

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Speaker 1: lot of money. I've heard this, I've heard this. But

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Speaker 1: the place where you lied is that you are still investing.

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Speaker 1: I know this because our business contributes a portion of

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Speaker 1: our and because of the way solo form one k's work,

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Speaker 1: we have to contribute the same amount. So our business

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Speaker 1: is contributing to your retirement. That's true, even though you

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Speaker 1: as you're not contributing the individual portion though.

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Speaker 2: So what's so great is that we've got a sort

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Speaker 2: of like a baseline, like our standard is so high

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Speaker 2: as to what it is that we're investing that I

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Speaker 2: honestly don't even kind of count.

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Speaker 1: That we just do that without thinking, which, yeah.

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Speaker 2: I'm just gonna point out there is something amazing that

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Speaker 2: comes with accountability and the facts in Granted, we could

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Speaker 2: just change things up, so a part of the reason

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Speaker 2: I'm continuing to do that is it would be a

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Speaker 2: pain in the butt. But b it's at the beginning.

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Speaker 2: We basically agreed to this. We you know, we're setting

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Speaker 2: up our four one K with Fidelity. Interesting trivia side note,

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Speaker 2: we named it the how to Money invest a Palooza

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Speaker 2: because you have to come up with retirement plan names.

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Speaker 2: And I think most corporations and businesses it's they take

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Speaker 2: they take it a little more seriously. But that's one

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Speaker 2: of the fun things about owning your own business. You

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Speaker 2: can do what you want.

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Speaker 3: That's right.

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Speaker 2: But yeah, we're investing. We basically agreed to the fact

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Speaker 2: that we're going to invest the max amount that we

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Speaker 2: can as employers. So because of that, yeah, I guess

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Speaker 2: I am investing. I didn't think about that. I was

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Speaker 2: thinking more from a so I am holding off on

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Speaker 2: personal contributions. I am whole holding off when it comes

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Speaker 2: to my wrath Ira, the Kate's espousal wrath Ira just

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Speaker 2: some of the different ways that you can invest. But

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Speaker 2: silver lining focus on the accountability aspect of it. Talk

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Speaker 2: about money, talk about investing with your friends, because let's

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Speaker 2: envision a world, Joel, where we didn't co own a

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Speaker 2: business together. Let's say you were self employed, you ran

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Speaker 2: your own business. Let's say I was self employed. I

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Speaker 2: ran my own business, and we would still talk about money,

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Speaker 2: right like we would talk about different deals that we

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Speaker 2: would get. I think it's more likely, though, that we

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Speaker 2: would not talk about the exact dollar amount. Perhaps that

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Speaker 2: each of us is soaking away towards retirement.

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Speaker 1: We're forced to with this because the employer contribution has

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Speaker 1: to be the same for both you and I essentially,

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Speaker 1: and if you were like, hey, dude, I don't want

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Speaker 1: to do this anymore, you know, we'd.

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Speaker 3: Have a talk about it.

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Speaker 1: Yeah, yeah, exactly, I'd throw a pissy fit and we'd

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Speaker 1: have to come to terms. And so I'm glad that

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Speaker 1: we at least see that as like a baseline. We're

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Speaker 1: not getting rid of that, and it's nice to know, Hey,

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Speaker 1: guess what, maybe that's a silver lining for you. You're still

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Speaker 1: investing something, right, even though you're prioritizing some other methods

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Speaker 1: from other avenues. With some of those dollars and So

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Speaker 1: what I would recommend is for a lot of folks

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Speaker 1: out there to talk about money, talk about what you're

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Speaker 1: investing in order to hold yourself accountable, because when you

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Speaker 1: put some of those different goals out there, you're gonna

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Speaker 1: be less.

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Speaker 2: Likely to walk that back.

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Speaker 4: You know.

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Speaker 2: It's just like your running challenges are going to the gym,

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Speaker 2: seeing certain folks there who are like, hey, been missing you,

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Speaker 2: you know, like what's been going on.

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Speaker 1: It might seem like it's weak accountability sometimes, but that matters.

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Speaker 1: Even the weak accountability matters. Say something out loud from

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Speaker 1: somebody else, then you're like, don't want to look foolish

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Speaker 1: if they asked, if they follow up and ask me.

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Speaker 3: About it later on. So totally agree.

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Speaker 2: All right, Well, I guess getting called out for lying

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Speaker 2: in that way that's such a bad that's the worst lie,

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Speaker 2: I guess. But let's introduce the beer that you and

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Speaker 2: I are sharing this episode is called the Garden of

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Speaker 2: Earthly Delights. This is a beer by Burial. It is

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Speaker 2: a barrel aged golden sour with Carrot's coconut curry and

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Speaker 2: vanilla bean looking forward to I combo. It's a crazy

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Speaker 2: combination which has never had a beer part of why

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Speaker 2: I picked it up that.

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Speaker 3: Have curry spices in it before.

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Speaker 2: Yeah, so we're gonna enjoy and share our thoughts at

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Speaker 2: the end of.

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Speaker 1: The episode, no doubt, And if you have a money question,

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Speaker 1: well just go to honmoney dot com slash ask for

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Speaker 1: the simple directions for how to submit it, or just

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Speaker 1: literally record your question on the voice memo app of

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Speaker 1: your phone, email it over to us and hopefully we'll

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Speaker 1: take it on the next ask htm episode. Matt, this

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Speaker 1: first question comes from a listener who's moving back in

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Speaker 1: with other folks.

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Speaker 5: Hi, Joel, and Matt, this is Madison from New York City.

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Speaker 5: I'm a longtime fan of the show and I'm hoping

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Speaker 5: to get your take on a new situation i'm facing.

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Speaker 5: For context, I'm twenty five years old and have been

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Speaker 5: living on my own for the past two years. I

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Speaker 5: will soon be moving back in with my parents at

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Speaker 5: the end of the month to help out with things

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Speaker 5: as my dad lost his job a while ago and

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Speaker 5: hasn't landed on his feet yet. Do you have any

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Speaker 5: advice for how I can approach establishing clear financial expectations

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Speaker 5: and responsibilities with my parents? Also, how can I navigate

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Speaker 5: contributing to living expenses at home, while also balancing that

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Speaker 5: with working towards my own financial goals. Thanks in advance,

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Speaker 5: love the show, Matt.

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Speaker 1: First things first, I got to say to Madison, so

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Speaker 1: sorry to hear about your dad's job loss. I mean, yeah,

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Speaker 1: that's a bummer. That's a really hard thing to go

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Speaker 1: through as a family. It can be tough emotionally, and

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Speaker 1: I think for the kid, Matt, it can put pressure

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Speaker 1: on you to participate financially. And I know that every

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Speaker 1: family and cultures has like kind of different ways of

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Speaker 1: going about that, right of what sort of involvement the

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Speaker 1: child should have in a family's finances, and some and

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Speaker 1: some cultures kids start working early and actually contributed that

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Speaker 1: Money's not theirs, it's the families. And so I totally,

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Speaker 1: I totally understand that different their different strokes for different

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Speaker 1: folks on that on that level, but I think it's

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Speaker 1: also potentially an opportunity here for Madison to be able

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Speaker 1: to pay her folks back for all the years of

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Speaker 1: support that they gave to her. And I don't even

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Speaker 1: necessarily mean that oh tens of thousands of dollars of

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Speaker 1: debt that she owes them and it's time to pay

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Speaker 1: the piper. I guess I'm saying that this. I think

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Speaker 1: this could be an opportunity to yes, juice her savings

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Speaker 1: rates since she's not going to be paying rent traditionally anymore,

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Speaker 1: but also be able to help her folks out at

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Speaker 1: the same time in a tough spot in their lives.

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Speaker 1: And so it makes me think, Matt, I moved back

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Speaker 1: in to my parents' house for like five months or

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Speaker 1: so right about Madison's age, which felt weird, by the way,

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Speaker 1: what we're going to talk about here in just a second.

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Speaker 1: But it was right as I was looking to buy

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Speaker 1: a house, and it helped a ton Like it helped me,

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Speaker 1: you know, save so much more because I was able

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Speaker 1: to skip out on rent payments for five months. So

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Speaker 1: big thanks to my mom and dad for it was

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Speaker 1: a limited time thing, but it really was massively helpful

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Speaker 1: in allowing me to garner that saving so that I

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Speaker 1: could come with the twenty percent down that I wanted

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Speaker 1: to buy that house.

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Speaker 2: Yeah, So was it proactively a limited time thing or

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Speaker 2: did it just end up that way? And you're like,

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Speaker 2: you can look back and retrospect and say, oh, yeah,

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Speaker 2: see it was just a short period of time, because

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Speaker 2: I guess what I'm pointing to here is that it

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Speaker 2: is worth having these conversations.

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Speaker 1: Yeah, I didn't have like a drop dead deadline, right,

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Speaker 1: but I had like a time that we had both

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Speaker 1: discussed as like this, this is how long I'm hoping

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Speaker 1: and thinking it's going to be nice.

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Speaker 2: So I think Madison, for you, it sounds like you've

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Speaker 2: got a great relationship with your family and a part

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Speaker 2: of why you're moving back is to help out financially,

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Speaker 2: and so because of that, I think offering to pay something,

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Speaker 2: especially given the financial circumstances your folks are in. Joel,

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Speaker 2: you said, Uh, it could be mutually beneficial, whether she's

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Speaker 2: trying to save up for a big financial goal like

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Speaker 2: buying a home, or just the ability to sock more

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Speaker 2: money away than otherwise she would be then she would

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Speaker 2: otherwise be able to Did she say she was actually yeah?

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Speaker 2: Was she actually in New York City? I know she

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Speaker 2: said New York, New York. I don't know if it was, so,

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Speaker 2: I don't know. My mind immediately goes to New York

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Speaker 2: City and I'm like, oh, yeah, you're definitely going to

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Speaker 2: be saving other parts of New York A ton of money.

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Speaker 3: Yeah, there's like Rochester, I like your buddy jesty.

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Speaker 2: But when it comes to what it is that you're contributing,

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Speaker 2: and you know what you're paying for rent, like it

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Speaker 2: doesn't need to be like market rate rent for renting

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Speaker 2: a room in your area. You are your parents' daughter

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Speaker 2: after all. But I would just be proactive with this conversation.

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Speaker 2: Don't wait for them to start it, like, make it

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Speaker 2: clear that hey, this is this is what I'm planning

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Speaker 2: to do. I think it's going to be less awkward

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Speaker 2: if you have an idea of what this looks like

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Speaker 2: versus them having to bring it up. Oh yeah, and yeah,

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Speaker 2: so if are you, I just would want to suggest

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Speaker 2: a fair monthly amount to pay. Maybe so just a

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Speaker 2: few chores that you can reabsorb, take you back to

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Speaker 2: some of your I don't know, high school years, maybe

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Speaker 2: you're having some flashbacks feed the cat Madison. Talk through

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Speaker 2: other expenses as well, like maybe paying a portion of

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Speaker 2: the utilities, maybe groceries. But I think just a proactive

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Speaker 2: financial commitment like this can create a lot of trust

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Speaker 2: and honestly like strengthen y'alls relationship, as opposed to this

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Speaker 2: being something that taxes or strains your relationship.

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Speaker 1: And this is why, like, honesty is the best policy, Matt,

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Speaker 1: I called you off for lying earlier, just I'm really

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Speaker 1: just trying to rub that in even though it wasn't

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Speaker 1: really that big of a deal. But yeah, honesty is

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Speaker 1: the best policy. And having the conversation is so much

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Speaker 1: better than not having it. Even though it might seem

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Speaker 1: like it's awkward in the moment, it's way less awkward

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Speaker 1: than the hurt feelings that can come from not having

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Speaker 1: had those discussions and not having kind of mutually agreed

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Speaker 1: upon rules for this move back in. And I don't know,

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Speaker 1: I would think of that as like a great starting point, Madison,

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Speaker 1: which you're able to suggest to your parents, but I

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Speaker 1: would get there and put too. I'm sure there's like

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Speaker 1: a lot of love and trust in your family, but

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Speaker 1: even still, expectations and relationships have changed. You're twenty five now,

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Speaker 1: you're not sixteen, and there is I think zero shame

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Speaker 1: in moving back home, especially if your intention is to help.

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Speaker 1: But it is crucial to ask for their input because

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Speaker 1: once you've made some of those suggestions, ask them what

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Speaker 1: they think is this fair? What are their expectations for

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Speaker 1: this living situation? Because you are I think understandably and

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Speaker 1: rightly concerned about boundaries here. Right you want to be

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Speaker 1: able to help them without hurting yourself, And I think

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Speaker 1: this is doable. It is possible to create a sweet, loving,

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Speaker 1: mutually beneficial move here. But it's also important to write

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Speaker 1: this stuff down, I think, so everyone can see the

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Speaker 1: terms laid out and agree to. It doesn't have to

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Speaker 1: be some sort of like twenty page lease or document

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Speaker 1: that's signed in blood or anything like that. You don't

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Speaker 1: have to go overboard, but that way, if there's like

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Speaker 1: a misunderstanding two months in, you can go back to

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Speaker 1: the document for clarity matter. I think of it as

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Speaker 1: like an investor statement. It can help you keep you

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Speaker 1: accountable to do the right thing, the thing you said

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Speaker 1: you were going to do, and you can go back

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Speaker 1: to it and look and say, am I doing what

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Speaker 1: I said I was going to do from the outset?

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Speaker 1: And you guys can use a similar document. It's honestly

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Speaker 1: can be like a one pager but I think that

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Speaker 1: would be really helpful.

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Speaker 3: Yeah, helpful reference.

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Speaker 2: Point, not like an Actually you don't need to drop

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Speaker 2: an actual lease and like have both of you all

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Speaker 2: sign up. But I say hire a lawyer or anything. Yeah,

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Speaker 2: but just actually kind of writing some things out. I

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Speaker 2: think that can be helpful. And you know, I think

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Speaker 2: there could, like traditionally, there could be some shame associated

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Speaker 2: with moving back home. But I think what's important to

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Speaker 2: recognize here is that it seems like Madison is kicking

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Speaker 2: butt like she is. She's the one that sent the

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Speaker 2: voice memo to the Personal Finance podcast and is having

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Speaker 2: an answered on the show, and so I think the

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Speaker 2: roles might be a little bit reversed here, Madison. I'm

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Speaker 2: mentioning this because I think it's worth being careful with

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Speaker 2: your folks just to make sure that they're not embarrassed.

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Speaker 2: I guess by the fact that you're having to move

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Speaker 2: back in with them a lot of times. Again, like

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Speaker 2: there's like a negative connotation and moving back in with

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Speaker 2: your folks, but they've launched you out into the world

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Speaker 2: and they know it sounds like that you might be

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Speaker 2: moving back home in order to help them out, and

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Speaker 2: so I would just be really careful. Again, all families

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Speaker 2: are different, different families that have different dynamics and expectations.

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Speaker 2: But I don't know, just keep that in mind as well,

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Speaker 2: that there might be some of that going on as well,

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Speaker 2: and that can dictate how it is that you approach

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Speaker 2: some of these conversations with just with some tenderness and sensitivity.

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Speaker 1: Yeah, Matt, I think one of the things maybe you're

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Speaker 1: getting at with that is that you might say, hey, parents,

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Speaker 1: here's how much I want to contribute, here's what I

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Speaker 1: want to take on when it comes to family roles

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Speaker 1: and financial obligations, and her parents might say, whoa, whoa, Woa, Madison,

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Speaker 1: you're our baby, right, like, no, no, no, you want to

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Speaker 1: pay four hundred bucks in rents? Know this is your home,

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Speaker 1: come back in, but because of what's happening with your dad,

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Speaker 1: I think the right thing to do is to insist,

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Speaker 1: essentially right to not let your parents kind of say no, no, no,

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Speaker 1: please don't because obviously they are in a financial situation.

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Speaker 3: Who knows how long it'll last.

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Speaker 1: Or you can be helpful, and this is I think

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Speaker 1: the right thing to do is to contribute extra towards groceries,

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Speaker 1: offer to do some of the cooking, and make sure

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Speaker 1: that you are paying a certain stipend or monthly rent

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Speaker 1: amount every single month and explain why you want to

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Speaker 1: pay something. Again, I think if there were no financial

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Speaker 1: struggles on their end, it might be different, but I

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Speaker 1: think that insistence on contributing is going to mean a

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Speaker 1: ton to them. They're they're gonna feel seen and supported.

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Speaker 2: So yeah, yeah, it's funny. I think you and I

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Speaker 2: see certain things very differently. It's funny because like we

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Speaker 2: have a lot in common, but like when it comes

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Speaker 2: to like if I was a parent and I had

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Speaker 2: a kid who had went off and even if I

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Speaker 2: was in a great financial position, I would I personally

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Speaker 2: would still be one hundred percent charging my kid rent,

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Speaker 2: not because I want their money, but just because, like selfishly,

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Speaker 2: I would. I think I would love for them to

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Speaker 2: move back in because I keep hearing from more and

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Speaker 2: more folks who have kids that are going off to

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Speaker 2: college and they're like really missing them. I think I

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Speaker 2: would love that, But I also know that it may

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Speaker 2: not be in the best interest of the kid, right,

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Speaker 2: Like you want them to get out there and to

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Speaker 2: launch a career, to have goals and ambitions to do something,

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Speaker 2: because they might be.

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Speaker 1: They might be more likely if they're living rent free

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Speaker 1: in your house to play whatever the latest game system

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Speaker 1: is all day, every day.

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Speaker 2: You don't want to necessarily incentivize that, so it's just

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Speaker 2: Madison's in dangers. No, No, it's just interesting because we're kind

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Speaker 2: of like in between Madison and her folks, right, Like

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Speaker 2: we're the generation in between, Like we're kind of the

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Speaker 2: sandwichship generation. And so I can very easily connect with

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Speaker 2: Madison as a child, but I can also start to

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Speaker 2: connect with the parents' point of view as well, having

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Speaker 2: kids and trying to look off into the future. But

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Speaker 2: either way, it does sound like you're going to come

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Speaker 2: out ahead financially. And so what I want to highlight

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Speaker 2: here is that it makes sense to know what it

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Speaker 2: is that you want to do with all this money

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Speaker 2: that you're saving, have some goals laid out, get after it,

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Speaker 2: because your monthly expenses could be declining meaningfully a significant amount,

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Speaker 2: especially if you are currently living in a high rent area.

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Speaker 2: I just don't want you to friar of those dollars away.

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Speaker 2: Think of it like you're mentioning like playing video games,

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Speaker 2: You'll think of this as like a game genie, like

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Speaker 2: this is almost like a hack in a way that

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Speaker 2: you're able to get playing with that was just like

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Speaker 2: a way to cheat on video back, And this is

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Speaker 2: kind of what this is. It is some sort of.

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Speaker 1: Like a cheat code essentially, right exactly, giving you some

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Speaker 1: special powers to be able to accelerate whatever financial goals

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Speaker 1: you have. Kind Of like Matt, when student loan payments

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Speaker 1: were paused, I guess they still kind of are for

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Speaker 1: years on end, and for people with massive student loan payments,

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Speaker 1: it was this like fresh start at least for a

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Speaker 1: bunch of years to be able to do a bunch

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Speaker 1: of things that they otherwise couldn't do with their money.

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Speaker 1: And so we were saying, game, Genie, that thing, use

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Speaker 1: use this to your financial advantage. And I think Madison

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Speaker 1: can do the same thing with reduced expenses by going

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Speaker 1: back to live at home. And Matt, there's also like

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Speaker 1: just so many other things that are worth discussing to

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Speaker 1: what are the rules of the house these days, and

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Speaker 1: what do you expect from me as a grown twenty

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Speaker 1: five year old woman, like having friends over or how

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Speaker 1: late I'm out right, that was one of the weirdest

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Speaker 1: things about when I moved back home at that age.

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Speaker 1: I remember it was, you know, I would I was

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Speaker 1: still under the assumption that I could go do whatever

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Speaker 1: I wanted whenever I wanted late night beers with friends

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Speaker 1: or whatever. And I remember my parents being like, what

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Speaker 1: time did you get home last night? And I was like,

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Speaker 1: I don't want to answer that your business mode. Yeah right,

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Speaker 1: And so it's worth having I don't know if there's

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Speaker 1: like a separate entrance or how that works in your house,

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Speaker 1: or if they're like staying up late waiting for you

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Speaker 1: on the couch. I mean, probably not at this point

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Speaker 1: in time, but it's worth having those discussions too. It's

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Speaker 1: not just hey, how long on my planning to live

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Speaker 1: here with you and to kind of hopefully help in

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Speaker 1: a financial way and enjoy this reconnection essentially with my

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Speaker 1: adult parents, but what are the actual ground rules? What

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Speaker 1: does it look like for me to actually live here

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Speaker 1: without us stepping on.

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Speaker 3: Each other's toes?

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Speaker 2: Totally Yeah, and you kind of touched on something there too,

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Speaker 2: like see this as a like I not kind of

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Speaker 2: hinted at this earlier too, but as a way for

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Speaker 2: you to strengthen your relationship with your parents. It's something

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Speaker 2: like ninety percent of the time that kids spend with

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Speaker 2: their parents happens by the time that they're eighteen years old.

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Speaker 2: This is sort of like a not a redo, but

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Speaker 2: you get to squeeze in some additional time with them,

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Speaker 2: and that stat really resonates with me even more as

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Speaker 2: a parent in thinking about the time you have with

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Speaker 2: your kids before they do hopefully launch and get out

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Speaker 2: into the world.

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Speaker 3: It's like, I appreciate it, enjoy it.

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Speaker 2: Yeah, kind of. Well, I know twenty five year old

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Speaker 2: Matt would not have appreciated. I mean, I don't think

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Speaker 2: I would have really appreciated that if I ended up

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Speaker 2: moving back home. It's like those narrow coffees or breakfast

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Speaker 2: or something like those are going to be so meaningful, Yes,

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Speaker 2: if you can see them for what they are and

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Speaker 2: realize that it's limited. Yeah, speaking of the parent child relationship,

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Speaker 2: we're gonna hear from a father who I think he's

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Speaker 2: got some proud dad vibes going on. We'll get to

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Speaker 2: that and more right after this.

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Speaker 3: Matt, we'll back.

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Speaker 1: We'll get to some more parent child relationship stuff after this.

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Speaker 1: I feel like you're a relationship guru blossoming. Yeah, why

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Speaker 1: in part of my very eyes. But let's get to

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Speaker 1: our next question, Matt. This one comes from a listener

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Speaker 1: who's thinking about becoming a landlord.

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Speaker 6: Hey, guys, Bob from New York here, how you guys,

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Speaker 6: doing in my current state of my financial journey. I

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Speaker 6: own a condo and I'm looking to buy a second

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Speaker 6: home in the near future. With that being said, I

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Speaker 6: would love to keep the condo and rent it out

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Speaker 6: as a second form of income. After doing some research

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Speaker 6: into the renting market in my area, I found that

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Speaker 6: I would only make a few hundred dollars a month

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Speaker 6: from a potential renter. Simply put, my mortgage in Texas

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Speaker 6: would account for approximately ninety percent of what a potential

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Speaker 6: renter would be paying, only leaving me about ten percent

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Speaker 6: profit margins each month. So my question is this, what

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Speaker 6: do you think the minimum required profit margins are when

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Speaker 6: taking on the risk of renting out of property?

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Speaker 2: Thanks?

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Speaker 6: Guys, love the show, all right?

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Speaker 2: So Joel, Bob asked how we're doing? And do you

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Speaker 2: think he was Do you think it was like a

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Speaker 2: passing a coworker at work, kind of like, hey, what's up?

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Speaker 2: Or do you think he actually wants to hear how

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Speaker 2: you are doing right now?

436
00:18:31,600 --> 00:18:34,720
Speaker 1: I've felt the deep heartfelt ask in that, and nobody

437
00:18:34,760 --> 00:18:35,560
Speaker 1: asked that in the questions.

438
00:18:35,600 --> 00:18:38,560
Speaker 2: I agree Bob. I appreciate that Bob has an intentionality

439
00:18:38,600 --> 00:18:40,719
Speaker 2: about about himself. I'm doing great, and I've only got

440
00:18:40,760 --> 00:18:42,159
Speaker 2: to know him over the past ninety seconds.

441
00:18:43,359 --> 00:18:44,760
Speaker 1: I'm not gonna say there's not hard things in my

442
00:18:44,760 --> 00:18:47,440
Speaker 1: life Matt right now, but overall I'm doing great.

443
00:18:47,440 --> 00:18:49,680
Speaker 2: I'm yeah, I feeling great. Fortunate worked out. We both

444
00:18:49,720 --> 00:18:51,480
Speaker 2: worked out this morning. You went on like a six

445
00:18:51,640 --> 00:18:54,080
Speaker 2: plus mile run. I got to work out in ate

446
00:18:54,119 --> 00:18:56,440
Speaker 2: some delicious leftovers for lunch, went on a walk around

447
00:18:56,480 --> 00:18:58,280
Speaker 2: the block like I like to do after lunch, sitting down,

448
00:18:58,359 --> 00:19:01,000
Speaker 2: drinking a delicious beer, talking about money with you.

449
00:19:01,000 --> 00:19:01,600
Speaker 3: What's not the love?

450
00:19:01,640 --> 00:19:03,040
Speaker 1: And I ran on the local trails, which I'm doing

451
00:19:03,119 --> 00:19:05,040
Speaker 1: less and less of. I'm doing more pavement running, and

452
00:19:05,080 --> 00:19:06,399
Speaker 1: I make you appreciate the woods.

453
00:19:06,520 --> 00:19:06,800
Speaker 3: Love it.

454
00:19:06,880 --> 00:19:08,760
Speaker 1: Yeah, it's my favorite. It's my favorite. I need to

455
00:19:08,760 --> 00:19:10,359
Speaker 1: make that more of a priority. So it's yeah, I

456
00:19:10,359 --> 00:19:10,920
Speaker 1: was a joy to.

457
00:19:10,840 --> 00:19:11,840
Speaker 3: Do that this morning. Yeah, all right.

458
00:19:11,920 --> 00:19:13,720
Speaker 2: Bob's got a great question here, though. I like the

459
00:19:13,760 --> 00:19:16,399
Speaker 2: way that he is thinking because renting out that condo,

460
00:19:17,280 --> 00:19:21,000
Speaker 2: this certainly could be a money making endeavor. But not

461
00:19:21,400 --> 00:19:25,400
Speaker 2: every property is created equal. Well specifically too, not all

462
00:19:25,480 --> 00:19:27,879
Speaker 2: financing terms are created equal, which is an important factor

463
00:19:27,920 --> 00:19:30,280
Speaker 2: to consider. And so what we don't know about Bob

464
00:19:30,320 --> 00:19:33,840
Speaker 2: here that would be helpful. Is the length of your mortgage?

465
00:19:33,920 --> 00:19:35,240
Speaker 3: Is this a.

466
00:19:34,840 --> 00:19:36,800
Speaker 2: Fifteen year or is this a thirty year?

467
00:19:36,880 --> 00:19:37,120
Speaker 3: Yeah?

468
00:19:37,200 --> 00:19:39,879
Speaker 2: Is this a fixed mortgage? Hopefully it definitely is. But

469
00:19:39,920 --> 00:19:42,600
Speaker 2: that would shed a lot of light. Yes, the rental

470
00:19:42,600 --> 00:19:46,560
Speaker 2: would be less profitable on an ongoing monthly basis, let's say,

471
00:19:46,560 --> 00:19:48,280
Speaker 2: with like a fifteen year note. But if you've got

472
00:19:48,320 --> 00:19:51,439
Speaker 2: an incredibly great rate and you know you're looking to

473
00:19:51,440 --> 00:19:53,600
Speaker 2: pay off the mortgage a decade and a half sooner

474
00:19:53,640 --> 00:19:55,720
Speaker 2: than a thirty year mortgage and still be cash flowing,

475
00:19:55,800 --> 00:19:58,080
Speaker 2: then I think that there is a really great reason

476
00:19:58,119 --> 00:19:58,840
Speaker 2: to hang over this thing.

477
00:19:58,960 --> 00:20:01,719
Speaker 1: Yeah, that's why the payment amount when we're talking about

478
00:20:02,160 --> 00:20:05,720
Speaker 1: owning a home, what that mortgage is, Well, it's yeah,

479
00:20:05,720 --> 00:20:07,400
Speaker 1: you're right, Matt. We need to know all these other

480
00:20:07,760 --> 00:20:11,120
Speaker 1: underlying details because they're gonna help inform Well, okay, are Yeah,

481
00:20:11,160 --> 00:20:13,320
Speaker 1: you're making money above and beyond the mortgage. But if

482
00:20:13,359 --> 00:20:16,159
Speaker 1: you've got a fifteen year mortgage, that makes this gap

483
00:20:16,320 --> 00:20:19,320
Speaker 1: even more insanely good. And I think it's also important

484
00:20:19,359 --> 00:20:21,440
Speaker 1: to note that the ten percent gap between the mortgage

485
00:20:21,440 --> 00:20:24,040
Speaker 1: and the rent amount doesn't tell the whole story either.

486
00:20:24,760 --> 00:20:28,480
Speaker 1: You're not necessarily gonna be pocketing that gap, and in fact, Bob,

487
00:20:28,520 --> 00:20:31,080
Speaker 1: you're probably gonna pocket a fraction of it. And that's

488
00:20:31,280 --> 00:20:35,040
Speaker 1: because you've got a factor in vacancy, repairs, right, and maintenance.

489
00:20:35,080 --> 00:20:38,720
Speaker 1: Those are the landlord's worst nightmares, but they're also the

490
00:20:38,760 --> 00:20:41,840
Speaker 1: true realities of being a landlord too, Matt. I've got

491
00:20:41,880 --> 00:20:44,760
Speaker 1: one side of my duplex. I've had two people like

492
00:20:44,800 --> 00:20:47,239
Speaker 1: basically say we're ready to sign a lease, and then

493
00:20:47,240 --> 00:20:50,680
Speaker 1: they ghost us. And so the vacancy is just part

494
00:20:50,800 --> 00:20:52,960
Speaker 1: of the deal and you have to bake that into

495
00:20:52,960 --> 00:20:55,399
Speaker 1: the cake. And if you don't, you're gonna find yourself

496
00:20:55,440 --> 00:20:58,399
Speaker 1: in a tough financial spot. And so you might experience

497
00:20:58,440 --> 00:21:00,760
Speaker 1: little or no vacancy, which would be great, but make

498
00:21:00,800 --> 00:21:03,600
Speaker 1: sure you plan for potential lulls. You might also find

499
00:21:03,600 --> 00:21:04,800
Speaker 1: that when all of a sudden done at the end

500
00:21:04,840 --> 00:21:06,560
Speaker 1: of the year, they actually lost a little bit of money.

501
00:21:06,560 --> 00:21:06,760
Speaker 3: Matter.

502
00:21:07,320 --> 00:21:09,800
Speaker 1: I'm gonna lose money on a couple of properties this year.

503
00:21:09,840 --> 00:21:11,840
Speaker 1: And that's not the end of the world, though, because

504
00:21:11,880 --> 00:21:14,000
Speaker 1: the key here is whether or not you want to

505
00:21:14,040 --> 00:21:16,840
Speaker 1: be a landlord, if you've got a long term mindset,

506
00:21:16,920 --> 00:21:19,960
Speaker 1: if you think that this property overall in the coming

507
00:21:20,040 --> 00:21:22,760
Speaker 1: years is going to be a solid money making endeavor

508
00:21:23,160 --> 00:21:25,359
Speaker 1: despite the cost and setbacks that you're of course going

509
00:21:25,400 --> 00:21:26,280
Speaker 1: to incur.

510
00:21:26,520 --> 00:21:30,480
Speaker 2: Yeah, so you're not saying that profitability doesn't matter. You're

511
00:21:30,480 --> 00:21:32,919
Speaker 2: not saying that cashlow isn't important. You're just stating that

512
00:21:32,960 --> 00:21:36,400
Speaker 2: you might not be predictably making money every single year

513
00:21:36,400 --> 00:21:38,879
Speaker 2: with this particular property. Although at ten percent gap that's

514
00:21:38,880 --> 00:21:41,439
Speaker 2: actually pretty solid. Just make sure you're including some of

515
00:21:41,440 --> 00:21:44,679
Speaker 2: those other expenses as well. But this is why it

516
00:21:44,720 --> 00:21:47,600
Speaker 2: is so crucial to think about the potential for appreciation.

517
00:21:47,680 --> 00:21:50,040
Speaker 2: There are two main ways that you can grow your

518
00:21:50,080 --> 00:21:53,040
Speaker 2: wealth by owning real estate, and that's either cash flow

519
00:21:53,240 --> 00:21:55,600
Speaker 2: or appreciation. And so a question you might want to

520
00:21:55,600 --> 00:21:57,440
Speaker 2: ask yourself is your condo in an up and coming

521
00:21:57,480 --> 00:22:01,840
Speaker 2: neighborhood do you think that you're gonna see outside returns

522
00:22:01,840 --> 00:22:04,320
Speaker 2: because of its location? And if so, you know, you

523
00:22:04,359 --> 00:22:07,120
Speaker 2: might just make penis like every year for the next decade,

524
00:22:07,480 --> 00:22:09,960
Speaker 2: but you might end up reaping a windfall at the

525
00:22:10,000 --> 00:22:12,479
Speaker 2: point when you actually sell the property. I think, as

526
00:22:12,480 --> 00:22:15,159
Speaker 2: long as your finances can handle waiting for that reward,

527
00:22:15,160 --> 00:22:17,600
Speaker 2: it could still be a really smart move. We don't

528
00:22:17,640 --> 00:22:20,760
Speaker 2: want you to overly focus on the cash flow side

529
00:22:20,760 --> 00:22:23,120
Speaker 2: of the equation. Were you to do that, then you'd

530
00:22:23,119 --> 00:22:26,040
Speaker 2: be looking at like a lot of commercial properties like

531
00:22:26,280 --> 00:22:30,119
Speaker 2: self storage or mobile home parks. Like trailer parks are

532
00:22:30,160 --> 00:22:33,359
Speaker 2: the classes of properties that typically have the highest amounts

533
00:22:33,359 --> 00:22:35,560
Speaker 2: of cash flow. But guess what, you're also not seeing

534
00:22:35,600 --> 00:22:39,040
Speaker 2: hardly any appreciation with those types of properties. Either, that's right,

535
00:22:39,080 --> 00:22:41,159
Speaker 2: that's right, So you have to take that in consideration

536
00:22:41,400 --> 00:22:44,080
Speaker 2: for sure, Matt. Cash Flow is one thing, appreciation is another,

537
00:22:44,320 --> 00:22:47,920
Speaker 2: And especially in high cost cities, high cost places to live,

538
00:22:48,400 --> 00:22:50,720
Speaker 2: that is something landlords have to focus more on because

539
00:22:50,760 --> 00:22:52,919
Speaker 2: typically the cash flow is harder to come by, but

540
00:22:53,000 --> 00:22:56,159
Speaker 2: appreciation can be even greater. And so especially if you

541
00:22:56,160 --> 00:22:58,639
Speaker 2: have good terms on that mortgage, extrapol it out, what

542
00:22:58,640 --> 00:23:01,479
Speaker 2: could that appreciation look like in the coming five, eight,

543
00:23:01,640 --> 00:23:03,800
Speaker 2: ten years and is it worth and can you handle

544
00:23:04,119 --> 00:23:06,439
Speaker 2: not having a ton of income from that property for

545
00:23:06,920 --> 00:23:09,160
Speaker 2: the greater upside down the road. I would also ask

546
00:23:09,160 --> 00:23:11,040
Speaker 2: yourself the question, Bob, do you want to be a landlord?

547
00:23:11,200 --> 00:23:14,240
Speaker 2: Wrestle with that for a second, because Matt and I

548
00:23:14,280 --> 00:23:16,760
Speaker 2: we always say this, it's more light part time job

549
00:23:16,880 --> 00:23:17,960
Speaker 2: than it is passive income.

550
00:23:18,000 --> 00:23:20,840
Speaker 1: And if you follow too many real estate influencers on

551
00:23:21,080 --> 00:23:23,560
Speaker 1: Instagram or TikTok or whatever. You're going to hear a

552
00:23:23,560 --> 00:23:26,840
Speaker 1: lot of high praises for real estate investing and just

553
00:23:26,880 --> 00:23:29,480
Speaker 1: how simple and easy it is, and we don't want

554
00:23:29,480 --> 00:23:32,240
Speaker 1: to overly complicate it either, but it's often not nearly

555
00:23:32,240 --> 00:23:34,440
Speaker 1: as passive as they make it sound. And so I

556
00:23:34,480 --> 00:23:36,680
Speaker 1: would also say, since this is a condo, it'll likely

557
00:23:36,680 --> 00:23:39,800
Speaker 1: be a little bit easier from a management perspective. Actually, Matt,

558
00:23:39,800 --> 00:23:42,679
Speaker 1: I manage my mother in law's condo for her. The

559
00:23:42,880 --> 00:23:45,680
Speaker 1: HOA is typically responsible for exterior repairs. It's a piece

560
00:23:45,680 --> 00:23:47,679
Speaker 1: of cake lawn maintenance. Are you going to say right no,

561
00:23:47,920 --> 00:23:50,919
Speaker 1: because then there's still intra unit disputes. There was a

562
00:23:50,960 --> 00:23:53,320
Speaker 1: water leak from our unit down to the unit below.

563
00:23:53,720 --> 00:23:57,240
Speaker 1: It was a massive hassle. And so I will say

564
00:23:57,280 --> 00:24:00,679
Speaker 1: I do think it is easier owning a condo and

565
00:24:00,680 --> 00:24:03,199
Speaker 1: renting it out if your condo association allows you to

566
00:24:03,240 --> 00:24:05,439
Speaker 1: do that, which is something you also need to look into.

567
00:24:05,680 --> 00:24:08,760
Speaker 1: But it's also maybe not completely fool proof or anything

568
00:24:08,800 --> 00:24:10,480
Speaker 1: like that. And one of the other things I think

569
00:24:10,520 --> 00:24:14,120
Speaker 1: Bob needs to consider is his potential ownership timeline, because

570
00:24:14,119 --> 00:24:15,760
Speaker 1: the cool thing about rental real estate is that the

571
00:24:15,840 --> 00:24:18,919
Speaker 1: numbers tend to get better over time as rents go up,

572
00:24:18,960 --> 00:24:21,120
Speaker 1: although that's not what's happening lots of the country right now.

573
00:24:21,280 --> 00:24:23,840
Speaker 1: But your mortgage amount stays the same, and so basically

574
00:24:23,880 --> 00:24:25,480
Speaker 1: ten years from now you might find, hey, the cash

575
00:24:25,480 --> 00:24:26,840
Speaker 1: flow is a heck of a lot better than it

576
00:24:26,880 --> 00:24:27,560
Speaker 1: was when I started.

577
00:24:27,840 --> 00:24:28,640
Speaker 2: And then on top of.

578
00:24:28,560 --> 00:24:30,520
Speaker 1: That, if you want to hold forever and let someone

579
00:24:30,560 --> 00:24:33,240
Speaker 1: else inherit the condo when you die, you're gonna get

580
00:24:33,240 --> 00:24:35,879
Speaker 1: tax breaks over the years, and they're gonna inherit that

581
00:24:35,960 --> 00:24:38,960
Speaker 1: property with a stepped up basis that this, of course,

582
00:24:39,440 --> 00:24:41,560
Speaker 1: could could be decades and decades and decades down the

583
00:24:41,600 --> 00:24:44,480
Speaker 1: road for Bob. It's a really interesting tax maneuver, but

584
00:24:44,560 --> 00:24:45,399
Speaker 1: it's a long time from now.

585
00:24:45,400 --> 00:24:47,920
Speaker 2: I just figured I should put it in there anyway, now, sure, sure, sure, yeah.

586
00:24:47,960 --> 00:24:50,600
Speaker 2: I would also think through, what Bob, would you be

587
00:24:50,680 --> 00:24:53,119
Speaker 2: doing with this money if you ended up selling the condo,

588
00:24:53,560 --> 00:24:56,600
Speaker 2: Because on one hand, if you just hurled it into

589
00:24:56,640 --> 00:24:59,320
Speaker 2: your roth IRA and anything above that you put in

590
00:24:59,359 --> 00:25:02,480
Speaker 2: a taxable b good account. Okay, you know, that'll certainly

591
00:25:02,480 --> 00:25:04,240
Speaker 2: be the easy route, although it might not be as

592
00:25:04,320 --> 00:25:06,760
Speaker 2: lucrative in the coming years. It is impossible to know.

593
00:25:06,840 --> 00:25:09,000
Speaker 2: But on the other hand, were you to be tempted

594
00:25:09,040 --> 00:25:14,080
Speaker 2: into spending all of that money, well long term tomorrow, Bob,

595
00:25:14,440 --> 00:25:16,960
Speaker 2: for your sake, I would say to hang onto that property.

596
00:25:17,119 --> 00:25:19,399
Speaker 2: And especially if you like the idea of becoming a landlord,

597
00:25:19,400 --> 00:25:21,399
Speaker 2: which which it does sound like you are interested in,

598
00:25:21,800 --> 00:25:24,680
Speaker 2: and you believe in the neighborhood where your condo is located,

599
00:25:25,040 --> 00:25:27,679
Speaker 2: I think holding onto it can deliver outsize returns in

600
00:25:27,680 --> 00:25:29,639
Speaker 2: the years to come. So you know, we've got no

601
00:25:29,680 --> 00:25:33,320
Speaker 2: slam dunk recommendation here, but I do lean towards holding

602
00:25:33,359 --> 00:25:36,080
Speaker 2: onto it in your case, and especially considering that I'm

603
00:25:36,119 --> 00:25:40,040
Speaker 2: assuming your mortgage interest rate on that thing is pretty low.

604
00:25:40,800 --> 00:25:42,280
Speaker 3: Let's say you about it five or six years ago.

605
00:25:42,480 --> 00:25:44,840
Speaker 2: Oh my gosh. Yeah, yeah, you're looking at i don't know,

606
00:25:44,880 --> 00:25:46,760
Speaker 2: in the threes for a thirty year, maybe even in

607
00:25:46,800 --> 00:25:49,520
Speaker 2: the twos if he's got that fifteen year, which on

608
00:25:49,560 --> 00:25:52,239
Speaker 2: a condo is certainly much more doable. Yeah. So with

609
00:25:52,280 --> 00:25:54,199
Speaker 2: that in mind, if it was me, I think I

610
00:25:54,240 --> 00:25:55,920
Speaker 2: would personally be hanging onto that condo.

611
00:25:56,040 --> 00:25:56,200
Speaker 3: Yeah.

612
00:25:56,240 --> 00:25:58,200
Speaker 1: Our goal in this response is to essentially lay out

613
00:25:58,200 --> 00:26:00,680
Speaker 1: a checklist of things for you to consider, because yeah,

614
00:26:00,720 --> 00:26:02,960
Speaker 1: there isn't any slam dun. One hundred percent you should

615
00:26:03,040 --> 00:26:04,600
Speaker 1: keep it or one hundred percent you should sell it.

616
00:26:04,760 --> 00:26:06,639
Speaker 1: There are a lot of personal factors and then you

617
00:26:06,800 --> 00:26:08,760
Speaker 1: factors about your specific property that you should take into

618
00:26:08,800 --> 00:26:12,480
Speaker 1: consideration before you make a final decision. But Bob, best

619
00:26:12,520 --> 00:26:14,359
Speaker 1: of luck in that decision, and Matt, let's get to

620
00:26:14,400 --> 00:26:17,760
Speaker 1: our next question. This one is about excess savings. Should

621
00:26:17,760 --> 00:26:20,359
Speaker 1: it stay a savings or should it become investment dollars?

622
00:26:20,600 --> 00:26:25,360
Speaker 4: Today? Man Joel, this is Jack from toll Sokolholma. I'm

623
00:26:25,400 --> 00:26:28,080
Speaker 4: calling for advice for my twenty nine year old daughter.

624
00:26:29,440 --> 00:26:33,280
Speaker 4: She is currently saving twenty three percent in a raw

625
00:26:33,440 --> 00:26:37,280
Speaker 4: War one K. She is saving the max on on hsay.

626
00:26:38,240 --> 00:26:41,639
Speaker 4: She has a roth Ira which she opened as a

627
00:26:41,680 --> 00:26:45,240
Speaker 4: team and has a total retirement savings of two hundred

628
00:26:45,240 --> 00:26:49,000
Speaker 4: and forty thousand dollars. She has no debt and owns

629
00:26:49,000 --> 00:26:51,880
Speaker 4: her own car. Needless to say, she is very good

630
00:26:51,920 --> 00:26:55,200
Speaker 4: about managing her money. Her career is very stable with

631
00:26:55,320 --> 00:26:58,199
Speaker 4: fi plus years of service. She has one hundred and

632
00:26:58,200 --> 00:27:01,480
Speaker 4: ten thousand dollars in cash say and plans to buy

633
00:27:01,760 --> 00:27:07,080
Speaker 4: a Midwest home within twelve months. She has recently divorced

634
00:27:07,720 --> 00:27:11,520
Speaker 4: My question is this, should she contribute to her wroth

635
00:27:11,600 --> 00:27:15,360
Speaker 4: IRA this year or use the funds for a home purchase.

636
00:27:15,840 --> 00:27:18,080
Speaker 4: Thanks for all you do, really appreciate it.

637
00:27:19,040 --> 00:27:20,879
Speaker 2: All right, Well, first of all, Jack, it sounds like

638
00:27:20,920 --> 00:27:24,200
Speaker 2: your daughter doesn't need much of our advice because she's

639
00:27:24,280 --> 00:27:27,680
Speaker 2: doing incredibly well, especially for still being in her twenties.

640
00:27:28,200 --> 00:27:30,920
Speaker 2: And I will say, and I kind of hinted at

641
00:27:30,920 --> 00:27:33,199
Speaker 2: this earlier, I think that Jack had a lot to

642
00:27:33,200 --> 00:27:35,840
Speaker 2: do with this, some of these proud dad vibes. Specifically,

643
00:27:35,840 --> 00:27:36,400
Speaker 2: he should.

644
00:27:36,160 --> 00:27:37,560
Speaker 1: Feel super I mean, if I have a kid that's

645
00:27:37,560 --> 00:27:40,399
Speaker 1: that financially responsible, Oh my gosh. Yeah, it's unlikely, but

646
00:27:40,480 --> 00:27:41,600
Speaker 1: if it happens, I'll be thrilled.

647
00:27:41,960 --> 00:27:43,560
Speaker 2: I was going to highlight the fact that she opened

648
00:27:43,600 --> 00:27:47,040
Speaker 2: a wroth as a teenager, which is a totally clutch move,

649
00:27:47,119 --> 00:27:49,800
Speaker 2: and I'm guessing may not have happened unless maybe Jack

650
00:27:49,880 --> 00:27:52,040
Speaker 2: mentioned something. All that being said, I don't know, maybe

651
00:27:52,040 --> 00:27:54,280
Speaker 2: this is totally his daughter and he didn't have any input,

652
00:27:54,280 --> 00:27:57,520
Speaker 2: which would be honestly even more impressive, and especially too,

653
00:27:57,560 --> 00:28:00,600
Speaker 2: he just casually mentioned slipped in there that she was

654
00:28:00,720 --> 00:28:02,959
Speaker 2: recently divorced. It's even I think it's even. I mean,

655
00:28:02,960 --> 00:28:05,359
Speaker 2: I can take a massive bite out of your financial like,

656
00:28:05,400 --> 00:28:08,240
Speaker 2: not just not emotionally, but also financially, in the fact

657
00:28:08,280 --> 00:28:11,119
Speaker 2: that she's still in an incredible position, like this is

658
00:28:11,160 --> 00:28:13,720
Speaker 2: a testament to how well she's handled her money. Yeah,

659
00:28:13,760 --> 00:28:17,359
Speaker 2: and she's already gained so much optionality in choice, which

660
00:28:17,400 --> 00:28:19,879
Speaker 2: is what a significant savings and investing rate can do

661
00:28:19,960 --> 00:28:22,600
Speaker 2: for people. But she's going to crew significantly more if

662
00:28:22,640 --> 00:28:25,240
Speaker 2: she keeps us up, Like every single month and year

663
00:28:25,320 --> 00:28:28,640
Speaker 2: that she keeps these money habits up, she's just got more.

664
00:28:28,760 --> 00:28:30,480
Speaker 2: I mean, think about where she's going to be mid thirties,

665
00:28:30,520 --> 00:28:33,200
Speaker 2: late thirties, the option she's going to be able to choose,

666
00:28:33,200 --> 00:28:35,960
Speaker 2: whether it's working for herself, whether it's working part time,

667
00:28:36,080 --> 00:28:38,400
Speaker 2: like I don't know, the world kind of becomes your

668
00:28:38,440 --> 00:28:41,560
Speaker 2: oyster when you're handling money this well. And the truth

669
00:28:41,640 --> 00:28:44,200
Speaker 2: is too if she never contributed another dollar to retirement,

670
00:28:44,240 --> 00:28:46,680
Speaker 2: which is not our suggestion, by the way, but it's

671
00:28:46,680 --> 00:28:49,560
Speaker 2: a fun experiment to think through. So Jack mentioned she

672
00:28:49,560 --> 00:28:52,600
Speaker 2: had two hundred and forty thousand dollars in her investment

673
00:28:52,600 --> 00:28:57,080
Speaker 2: accounts already, and I just ran the numbers. Basically that

674
00:28:57,640 --> 00:29:00,880
Speaker 2: nest egg would turn into two point five million dollars

675
00:29:01,200 --> 00:29:03,320
Speaker 2: over the next thirty years with an average return of

676
00:29:03,360 --> 00:29:05,800
Speaker 2: eight percent. That's called coast fire right there, That's where

677
00:29:05,800 --> 00:29:06,160
Speaker 2: she's at.

678
00:29:06,240 --> 00:29:09,840
Speaker 1: Yeah, she would not have to do any more investing

679
00:29:09,880 --> 00:29:11,640
Speaker 1: if she didn't want to. That would still in all

680
00:29:11,720 --> 00:29:13,200
Speaker 1: likelihood be plenty.

681
00:29:12,920 --> 00:29:14,080
Speaker 3: Of money for her in retirement.

682
00:29:14,200 --> 00:29:17,440
Speaker 1: So and she still wouldn't be sixty, she'd be fifty nine.

683
00:29:17,600 --> 00:29:20,280
Speaker 1: It's amazing close enough. It's just it just really goes

684
00:29:20,360 --> 00:29:22,560
Speaker 1: to show the power of front loading the sacrifice. And

685
00:29:22,600 --> 00:29:24,960
Speaker 1: so actually the timing is kind of perfect because you

686
00:29:25,040 --> 00:29:26,320
Speaker 1: start pulling some.

687
00:29:26,280 --> 00:29:30,040
Speaker 2: Of that money out of play the wroth without any penalties. Yeah, right,

688
00:29:30,120 --> 00:29:32,400
Speaker 2: it's so amazing. She's really such a great, great position.

689
00:29:32,440 --> 00:29:35,040
Speaker 1: She show it. So what should she do with this cash? Well,

690
00:29:35,080 --> 00:29:37,200
Speaker 1: you know, we're talking about a minimal amount, something like

691
00:29:37,280 --> 00:29:40,160
Speaker 1: six percent of the substantial down payment that she's been

692
00:29:40,200 --> 00:29:43,560
Speaker 1: able to save. She'll still have over one hundred thousand

693
00:29:43,560 --> 00:29:45,640
Speaker 1: dollars matt to put down on this house even if

694
00:29:45,880 --> 00:29:48,920
Speaker 1: she makes this wroth contribution. And I'm we don't know,

695
00:29:49,240 --> 00:29:51,440
Speaker 1: you know, how expensive the home that she's ideally looking

696
00:29:51,440 --> 00:29:53,640
Speaker 1: to purchase is going to be. I would say I

697
00:29:53,680 --> 00:29:55,680
Speaker 1: hope that she's staying under the five hundred thousand dollars

698
00:29:55,680 --> 00:29:57,560
Speaker 1: price point. Oh, I've got to think so that allows

699
00:29:57,600 --> 00:30:00,240
Speaker 1: her then the twenty percent to put down avoiding p AM.

700
00:30:00,240 --> 00:30:04,160
Speaker 1: I keeping hopefully that mortgage reasonable and guess what, you

701
00:30:04,160 --> 00:30:06,600
Speaker 1: can still contribute to the Wroth. Right, you can basically

702
00:30:06,880 --> 00:30:08,560
Speaker 1: have your cake and eat it too. Yeah, that would

703
00:30:08,560 --> 00:30:09,280
Speaker 1: be the sweet spot.

704
00:30:09,560 --> 00:30:13,040
Speaker 2: We talked about this with ed Slot because those Wroth

705
00:30:13,080 --> 00:30:16,400
Speaker 2: dollars they're just far superior in retirement because you've already

706
00:30:16,400 --> 00:30:18,240
Speaker 2: paid the tax on that when you're likely going to

707
00:30:18,280 --> 00:30:21,200
Speaker 2: see higher tax rates and you can never go back

708
00:30:21,200 --> 00:30:23,920
Speaker 2: in time and contribute towards a year that you missed.

709
00:30:24,320 --> 00:30:26,320
Speaker 2: And Jack, the way your daughter is headed, like her

710
00:30:26,320 --> 00:30:29,440
Speaker 2: income it might soar the near future. She just sounds

711
00:30:29,520 --> 00:30:31,360
Speaker 2: like such a go get her and yeah, she's gonna

712
00:30:31,360 --> 00:30:32,880
Speaker 2: be together on every level. Yeah.

713
00:30:33,040 --> 00:30:35,400
Speaker 1: Really, she could be seeing like big time six figures,

714
00:30:35,480 --> 00:30:36,400
Speaker 1: which high tax rates.

715
00:30:36,440 --> 00:30:38,080
Speaker 2: If that were to happen, that would also make her

716
00:30:38,080 --> 00:30:41,920
Speaker 2: ineligible to contribute to her wrath in the future. And

717
00:30:41,960 --> 00:30:44,360
Speaker 2: so I think that that is the combination of this

718
00:30:44,480 --> 00:30:47,200
Speaker 2: not really impacting how much she can she would have

719
00:30:47,280 --> 00:30:49,680
Speaker 2: to set aside towards the down payment for a house

720
00:30:49,960 --> 00:30:51,520
Speaker 2: and the fact that you can't go back in time.

721
00:30:51,560 --> 00:30:54,480
Speaker 2: I think that makes this a top money priority for her,

722
00:30:54,640 --> 00:30:56,800
Speaker 2: And I think you're spot on, Matt. It's the it's

723
00:30:56,880 --> 00:30:58,920
Speaker 2: used or lose it. It's like FSA dollars, right, if

724
00:30:58,920 --> 00:31:01,680
Speaker 2: they don't get spent, they vanish. Well, if you don't,

725
00:31:01,800 --> 00:31:04,280
Speaker 2: you know, max out your ROTH contribution for twenty twenty four,

726
00:31:04,480 --> 00:31:05,920
Speaker 2: you can't go back and do it again later. I mean,

727
00:31:05,960 --> 00:31:07,560
Speaker 2: I guess you can do it, say through the first

728
00:31:07,600 --> 00:31:10,080
Speaker 2: quarter of twenty twenty five essentially, but after that point,

729
00:31:10,200 --> 00:31:12,520
Speaker 2: let's the moments past. And when you say use it,

730
00:31:12,760 --> 00:31:14,720
Speaker 2: you don't mean actually using those dollars. It's think of

731
00:31:14,720 --> 00:31:16,600
Speaker 2: it like a window of time. You can use that

732
00:31:16,600 --> 00:31:19,000
Speaker 2: period of time to contribute. Of course not We're not

733
00:31:19,040 --> 00:31:20,680
Speaker 2: telling you to actually spend them money.

734
00:31:20,600 --> 00:31:22,680
Speaker 1: Time travel portal or something. But it's going to disappear.

735
00:31:23,160 --> 00:31:25,040
Speaker 1: There's gotta be some movie where that happens. Oh yeah,

736
00:31:25,080 --> 00:31:25,640
Speaker 1: where they're.

737
00:31:25,440 --> 00:31:27,560
Speaker 2: Like the portals open for only so long? Yeah, what

738
00:31:27,640 --> 00:31:31,080
Speaker 2: ifore it closes? There's like all the sci fi. One

739
00:31:31,120 --> 00:31:33,800
Speaker 2: that immediately comes to mind is tron Okay, tron Legacy

740
00:31:33,840 --> 00:31:36,960
Speaker 2: with Jeff Bridges, and there's the portals open for a

741
00:31:37,000 --> 00:31:38,920
Speaker 2: period of time and they have to take the thing

742
00:31:39,120 --> 00:31:41,280
Speaker 2: up into the I don't know what they called it, Okay,

743
00:31:41,520 --> 00:31:42,040
Speaker 2: the portal.

744
00:31:42,400 --> 00:31:44,400
Speaker 1: It's been a long time, and I think, Matt, what

745
00:31:44,520 --> 00:31:46,280
Speaker 1: we shall also mention that part of the wroth appeal

746
00:31:46,360 --> 00:31:48,840
Speaker 1: is the flexibility that it offers. Right, sure, your daughter

747
00:31:48,960 --> 00:31:52,040
Speaker 1: can take wroth contributions out if she needs to in

748
00:31:52,080 --> 00:31:54,400
Speaker 1: the future. And then on top of that, there are

749
00:31:54,520 --> 00:31:57,320
Speaker 1: ways to tap ten thousand dollars of even earnings in

750
00:31:57,360 --> 00:32:00,880
Speaker 1: your wroth without penalty for a down payment. So obviously

751
00:32:00,920 --> 00:32:02,720
Speaker 1: what we would say too is just because you can

752
00:32:02,760 --> 00:32:04,800
Speaker 1: doesn't mean you should. We'd love to see her not

753
00:32:04,880 --> 00:32:08,280
Speaker 1: only keep that account fully intact, but also be contributing more. Yeah,

754
00:32:08,280 --> 00:32:10,960
Speaker 1: these are retirement dollars after all, not like a home

755
00:32:11,000 --> 00:32:13,840
Speaker 1: down payment, rath Ira, that's not necessarily what it's for.

756
00:32:13,920 --> 00:32:16,000
Speaker 1: But she's also this section of her life where she's

757
00:32:16,000 --> 00:32:18,120
Speaker 1: trying to accomplish a lot of financial goals, like a

758
00:32:18,120 --> 00:32:20,120
Speaker 1: lot of our listeners are, Matt, and it feels like

759
00:32:20,160 --> 00:32:21,960
Speaker 1: I can't do it all. You know, I'm trying, but

760
00:32:22,000 --> 00:32:23,480
Speaker 1: I can't do it all. And we get that too,

761
00:32:23,800 --> 00:32:25,640
Speaker 1: But she also seems like one of those rare folks

762
00:32:25,880 --> 00:32:29,280
Speaker 1: who is able to successfully choose the option d Matt

763
00:32:29,320 --> 00:32:32,320
Speaker 1: all the above right consistently, so I think she can

764
00:32:32,840 --> 00:32:35,840
Speaker 1: buy the house make the ROTH contribution in twenty twenty four.

765
00:32:36,200 --> 00:32:39,160
Speaker 1: So that's our advice. Keep doing what you're doing and yeah,

766
00:32:39,440 --> 00:32:41,080
Speaker 1: try to me both at the same time, and I

767
00:32:41,160 --> 00:32:43,760
Speaker 1: think she can. It's not a binary decision like walking

768
00:32:43,840 --> 00:32:45,560
Speaker 1: and chewing gum, right, Yeah, like in this.

769
00:32:45,560 --> 00:32:48,080
Speaker 2: Case, she can definitely do that. But Joey got more

770
00:32:48,120 --> 00:32:50,520
Speaker 2: to get to, including that MBA question. We'll get to

771
00:32:50,560 --> 00:33:00,880
Speaker 2: that right after the break. That as always a time

772
00:33:00,920 --> 00:33:02,800
Speaker 2: for the Facebook question of the week.

773
00:33:02,880 --> 00:33:04,640
Speaker 3: Indeed, this one comes from Emily.

774
00:33:05,000 --> 00:33:07,520
Speaker 1: She starts it out by saying TLDR, which means too

775
00:33:07,560 --> 00:33:11,440
Speaker 1: long don't read for all you all the old. She says,

776
00:33:11,480 --> 00:33:13,600
Speaker 1: when is it appropriate to leave a job that's paying

777
00:33:13,600 --> 00:33:16,480
Speaker 1: for my MBA but isn't giving me a good salary.

778
00:33:16,680 --> 00:33:18,760
Speaker 1: I need advice on when to leave my job so

779
00:33:18,800 --> 00:33:21,120
Speaker 1: I can make more money and advance my personal and

780
00:33:21,120 --> 00:33:24,160
Speaker 1: professional goals. I'm currently getting my MBA and my company

781
00:33:24,200 --> 00:33:26,440
Speaker 1: is paying for it. I'll be done in two semesters,

782
00:33:26,480 --> 00:33:29,120
Speaker 1: only four semesters total, and it's going to cost approximately

783
00:33:29,120 --> 00:33:32,400
Speaker 1: thirty three thousand dollars. The payback period is two years

784
00:33:32,440 --> 00:33:34,720
Speaker 1: of work for every one year in school, so I'll

785
00:33:34,720 --> 00:33:37,040
Speaker 1: ow my job about two and a half years after

786
00:33:37,120 --> 00:33:40,920
Speaker 1: I graduate in May twenty twenty five. Additionally, the payback

787
00:33:40,920 --> 00:33:42,880
Speaker 1: period has a scale. If I leave after one year,

788
00:33:43,000 --> 00:33:45,000
Speaker 1: I would only have to pay back fifty percent. But

789
00:33:45,000 --> 00:33:46,960
Speaker 1: I don't think I can stick around that long because

790
00:33:47,160 --> 00:33:50,120
Speaker 1: some benefits are being taken away. My raise this year

791
00:33:50,240 --> 00:33:53,360
Speaker 1: was below four percent, and the work environment is declining.

792
00:33:53,640 --> 00:33:55,760
Speaker 1: So when I started the program, I was told by

793
00:33:55,800 --> 00:33:57,760
Speaker 1: someone higher up in the company that the degree doesn't

794
00:33:57,800 --> 00:34:01,400
Speaker 1: equal an automatic pay increase. They're encouraging or enticing for

795
00:34:01,480 --> 00:34:03,880
Speaker 1: me to stay. I don't want to jump ship immediately

796
00:34:03,920 --> 00:34:05,800
Speaker 1: and seem ungrateful, but I also don't want to stay

797
00:34:05,840 --> 00:34:08,560
Speaker 1: too long. Any advice would be appreciated. I'm a first

798
00:34:08,560 --> 00:34:11,000
Speaker 1: gen college student, so no one I know has been

799
00:34:11,000 --> 00:34:13,000
Speaker 1: in this position before. Well, I'll say right out of

800
00:34:13,000 --> 00:34:14,360
Speaker 1: the gate, the first thing I've noticed is that it

801
00:34:14,360 --> 00:34:16,520
Speaker 1: seems like she that there is a pressure for her

802
00:34:16,560 --> 00:34:19,279
Speaker 1: to stay with this company when she doesn't necessarily have to.

803
00:34:19,440 --> 00:34:20,640
Speaker 1: And I think there are a whole lot of other

804
00:34:20,760 --> 00:34:24,799
Speaker 1: additional factors that you need to keep in mind. Emily specifically.

805
00:34:25,200 --> 00:34:27,160
Speaker 1: You know, you kind of mentioned the environment there at work.

806
00:34:27,480 --> 00:34:30,239
Speaker 1: There are also relationships that are at stake, but also

807
00:34:30,280 --> 00:34:33,319
Speaker 1: other perks like a paid for college, and these things

808
00:34:33,400 --> 00:34:35,959
Speaker 1: all influence whether we decide to start looking for something

809
00:34:36,000 --> 00:34:37,560
Speaker 1: else or if you're going to stay put. You're kind

810
00:34:37,560 --> 00:34:40,000
Speaker 1: of hinting at the total comp right, and she's saying, Oh,

811
00:34:40,000 --> 00:34:42,719
Speaker 1: they haven't been able to keep up salaryise, but total compwise,

812
00:34:43,040 --> 00:34:44,520
Speaker 1: where does that stand? I think it's a good thing

813
00:34:44,560 --> 00:34:46,200
Speaker 1: to consider exactly.

814
00:34:45,800 --> 00:34:48,240
Speaker 2: Like, for instance, what is the four to one k match,

815
00:34:48,480 --> 00:34:50,520
Speaker 2: Like they're at the company and the fact that they're

816
00:34:50,560 --> 00:34:53,360
Speaker 2: paying for you in your MBA, this could tip the

817
00:34:53,360 --> 00:34:55,680
Speaker 2: scales in favor of your current employer and for you

818
00:34:55,760 --> 00:34:58,080
Speaker 2: to stay put. Who knows, maybe you've got a whole

819
00:34:58,080 --> 00:35:00,399
Speaker 2: lot of flexibility here with your current company. The fact

820
00:35:00,440 --> 00:35:03,120
Speaker 2: that this is something that they have offered you, I

821
00:35:03,160 --> 00:35:05,239
Speaker 2: don't know, it makes me think that that might be

822
00:35:05,320 --> 00:35:07,520
Speaker 2: more of the case. So I mentioned all of these

823
00:35:07,560 --> 00:35:10,080
Speaker 2: different factors because I think it could make sense for

824
00:35:10,120 --> 00:35:12,399
Speaker 2: you to at least write these down in just way,

825
00:35:12,520 --> 00:35:15,239
Speaker 2: some of those benefits as you are considering whether or

826
00:35:15,239 --> 00:35:16,279
Speaker 2: not to jump ship or not.

827
00:35:16,400 --> 00:35:18,560
Speaker 1: Yeah, I think like a pros and cons checklist, Matt

828
00:35:18,600 --> 00:35:21,279
Speaker 1: can really help because I think sometimes the vibes it's like, ah, man,

829
00:35:21,320 --> 00:35:23,319
Speaker 1: I feel disappointed because I thought the raise was going

830
00:35:23,400 --> 00:35:26,520
Speaker 1: to be bigger, and man, the vibes that work have

831
00:35:26,840 --> 00:35:30,319
Speaker 1: not been so hot lately. It feels like there's like

832
00:35:30,320 --> 00:35:33,840
Speaker 1: a pessimistic tone or something like that. And it's not

833
00:35:33,880 --> 00:35:35,759
Speaker 1: that those things don't matter, but I would just create

834
00:35:35,800 --> 00:35:37,200
Speaker 1: a checklist so that I could put things in their

835
00:35:37,239 --> 00:35:40,520
Speaker 1: proper category and kind of realize, what is my total

836
00:35:40,520 --> 00:35:43,360
Speaker 1: conversation in this job and actually, could I get something

837
00:35:43,520 --> 00:35:47,440
Speaker 1: much more lucrative elsewhere, because you wouldn't want to necessarily

838
00:35:47,560 --> 00:35:50,280
Speaker 1: leave and then find that the pastors aren't actually greener

839
00:35:50,320 --> 00:35:52,560
Speaker 1: on the other side. And I would say this too, Matt,

840
00:35:52,560 --> 00:35:54,440
Speaker 1: that you might hear of a peer or something like

841
00:35:54,520 --> 00:35:57,520
Speaker 1: that who's making more money in a similar job than you,

842
00:35:57,640 --> 00:35:59,640
Speaker 1: and it's worth having those discussions to find out what

843
00:35:59,719 --> 00:36:02,799
Speaker 1: are you making, what are the perks down at this

844
00:36:02,960 --> 00:36:05,480
Speaker 1: particular employer, Like those are good ways to shed some

845
00:36:05,600 --> 00:36:06,880
Speaker 1: light on what you might be able to get on

846
00:36:06,880 --> 00:36:07,560
Speaker 1: the open market.

847
00:36:07,600 --> 00:36:10,759
Speaker 2: Well, and specifically somebody that also has the NBA right

848
00:36:10,800 --> 00:36:13,080
Speaker 2: because even within her company, the fact that She said

849
00:36:13,160 --> 00:36:16,040
Speaker 2: that somebody higher up was like, hey, this, you know,

850
00:36:16,360 --> 00:36:18,200
Speaker 2: you're not going to get automatically get paid, Like I

851
00:36:18,280 --> 00:36:20,680
Speaker 2: kind of I don't have a love hate relationship with

852
00:36:20,719 --> 00:36:22,799
Speaker 2: that because I kind of like it because it's like, hey,

853
00:36:22,880 --> 00:36:25,279
Speaker 2: you got to prove that you are worth it, like

854
00:36:25,480 --> 00:36:28,479
Speaker 2: it's not just being credentialed. But at the same time,

855
00:36:28,800 --> 00:36:30,480
Speaker 2: some of that can be hard to measure. I think

856
00:36:30,520 --> 00:36:33,840
Speaker 2: some of the additional benefit that you bring to your company, yeah,

857
00:36:33,960 --> 00:36:36,000
Speaker 2: it's tough to quantify sometimes well. And the other thing

858
00:36:36,080 --> 00:36:38,200
Speaker 2: is they might say, we're not going to pay extra

859
00:36:38,239 --> 00:36:39,920
Speaker 2: because we paid for the NBA, which I kind of

860
00:36:39,960 --> 00:36:42,520
Speaker 2: sort of also understand a little bit, right, But I

861
00:36:42,560 --> 00:36:44,399
Speaker 2: don't know. I guess it's tough also to think about

862
00:36:44,440 --> 00:36:47,680
Speaker 2: staying somewhere for three years longer, given some of the

863
00:36:47,800 --> 00:36:52,200
Speaker 2: details that Emily mentioned, especially if future advancement looks paltry,

864
00:36:52,239 --> 00:36:55,280
Speaker 2: like if, like I don't know, an awesome employer typically

865
00:36:55,320 --> 00:36:57,879
Speaker 2: isn't isn't acting in a demoralizing fashion, And this sounds

866
00:36:57,880 --> 00:37:02,040
Speaker 2: pretty demoralizing. Specifically, she's talking about how the work environment

867
00:37:02,120 --> 00:37:05,160
Speaker 2: is declining, so that speaks to other stuff that might

868
00:37:05,200 --> 00:37:06,880
Speaker 2: be going on there at the company as well. And

869
00:37:07,000 --> 00:37:08,520
Speaker 2: obviously you want to make sure that you are in

870
00:37:08,600 --> 00:37:11,880
Speaker 2: a healthy environment. But then of course the fact that

871
00:37:11,920 --> 00:37:14,520
Speaker 2: she was talking about how there's a scale, how you

872
00:37:14,520 --> 00:37:16,719
Speaker 2: know you leave after one year and you've only you

873
00:37:16,760 --> 00:37:19,319
Speaker 2: only got to pay back half, that's another consideration, Like

874
00:37:19,360 --> 00:37:21,400
Speaker 2: you have to take that into account as like that

875
00:37:21,520 --> 00:37:24,120
Speaker 2: is a part of the total compensation, right, not just

876
00:37:24,200 --> 00:37:26,600
Speaker 2: the fact that you receive this benefit, but also the

877
00:37:26,600 --> 00:37:28,520
Speaker 2: fact that you have to pay it back or you

878
00:37:28,520 --> 00:37:31,239
Speaker 2: need to leave early. And so just keep that in mind.

879
00:37:31,760 --> 00:37:33,279
Speaker 3: Is the NBA worth it if you have to pay

880
00:37:33,280 --> 00:37:33,480
Speaker 3: for it?

881
00:37:33,520 --> 00:37:35,480
Speaker 2: I mean it sounds like she's kind of plot committed

882
00:37:35,480 --> 00:37:36,880
Speaker 2: of yeah at that point at this point, and so

883
00:37:37,000 --> 00:37:38,600
Speaker 2: I mean, if it was me, I would stay. But

884
00:37:38,880 --> 00:37:41,799
Speaker 2: as you are looking, let's say the work environment has

885
00:37:41,920 --> 00:37:44,880
Speaker 2: really gone downhill at this particular company and you are

886
00:37:44,920 --> 00:37:47,800
Speaker 2: going to jump ship. You are starting to have conversations

887
00:37:47,840 --> 00:37:50,040
Speaker 2: with other folks in the industry. Maybe flow your resume

888
00:37:50,080 --> 00:37:53,600
Speaker 2: out there, talk with that employer and see if they

889
00:37:53,680 --> 00:37:55,160
Speaker 2: might be able to come on board and help to

890
00:37:55,239 --> 00:37:57,920
Speaker 2: pay some of that NBA, some of those costs that

891
00:37:57,960 --> 00:38:00,560
Speaker 2: you have to pay. Just like, Hey, I'm interested in

892
00:38:00,600 --> 00:38:02,320
Speaker 2: coming to work for you.

893
00:38:02,280 --> 00:38:04,240
Speaker 3: But it's one halfway through this NBA.

894
00:38:04,840 --> 00:38:06,560
Speaker 2: It's sort of like when you're selling a home, like

895
00:38:07,040 --> 00:38:08,960
Speaker 2: you don't get all that money, like first you have

896
00:38:09,000 --> 00:38:11,120
Speaker 2: to satisfy the original lean on the home, which is

897
00:38:11,120 --> 00:38:13,680
Speaker 2: held by the first mortgage holder. So in a way,

898
00:38:13,760 --> 00:38:15,880
Speaker 2: that's almost like what's going on here. It's like I

899
00:38:15,920 --> 00:38:18,919
Speaker 2: owe this money to my former employer because they're making

900
00:38:18,920 --> 00:38:22,000
Speaker 2: me pay for the NBA. Will you pay for that?

901
00:38:22,160 --> 00:38:24,480
Speaker 2: And then there's a chance that they don't consider that

902
00:38:24,520 --> 00:38:26,759
Speaker 2: as total as part of the overall compensation at the

903
00:38:26,800 --> 00:38:29,759
Speaker 2: new company. But for you, obviously it is a huge

904
00:38:29,760 --> 00:38:31,439
Speaker 2: perk were they to pay that off for you something

905
00:38:31,440 --> 00:38:31,840
Speaker 2: to consider.

906
00:38:32,160 --> 00:38:35,319
Speaker 1: I would also suggest this to Matt, consider having an

907
00:38:35,320 --> 00:38:38,920
Speaker 1: honest conversation with your current employer about your future, about

908
00:38:38,920 --> 00:38:41,879
Speaker 1: your career trajectory. I would you tell them that you're hey,

909
00:38:41,880 --> 00:38:44,760
Speaker 1: you're loving the education you're getting, thank you. But also

910
00:38:44,920 --> 00:38:47,640
Speaker 1: I would want to talk about what responsibility you hope

911
00:38:47,680 --> 00:38:51,520
Speaker 1: to take on, like where you see things going, what proactively,

912
00:38:51,800 --> 00:38:55,319
Speaker 1: how you intend to use this degree to increase your

913
00:38:55,400 --> 00:38:57,239
Speaker 1: role at the company. And then I would ask them

914
00:38:57,280 --> 00:38:58,879
Speaker 1: where do they see you going over the next couple

915
00:38:58,880 --> 00:39:01,400
Speaker 1: of years, Like from there vantage point where do they

916
00:39:01,520 --> 00:39:04,759
Speaker 1: envision you just before piecing out or upsetting the apple cart,

917
00:39:04,960 --> 00:39:07,440
Speaker 1: especially considering how much money is on the line for

918
00:39:07,480 --> 00:39:09,880
Speaker 1: this education, I'd want to probe in those ways first,

919
00:39:10,160 --> 00:39:12,399
Speaker 1: and I think having an idea of where you want

920
00:39:12,400 --> 00:39:14,160
Speaker 1: to go with that company, where you could see yourself,

921
00:39:14,320 --> 00:39:16,040
Speaker 1: and then asking them if they see the same thing,

922
00:39:16,320 --> 00:39:18,879
Speaker 1: That could be an enlightening conversation, Matt, and it could

923
00:39:18,880 --> 00:39:21,360
Speaker 1: potentially put her on a path staying where she is

924
00:39:21,400 --> 00:39:23,640
Speaker 1: currently with some of those with some of those benefits,

925
00:39:23,680 --> 00:39:26,959
Speaker 1: including the education benefit, to a pretty prosperous financial future

926
00:39:26,960 --> 00:39:27,359
Speaker 1: down the road.

927
00:39:27,440 --> 00:39:28,839
Speaker 2: Yeah, and not to mention, just the fact that you're

928
00:39:28,880 --> 00:39:31,640
Speaker 2: even having that conversation just shows the initiative that you're

929
00:39:31,640 --> 00:39:33,960
Speaker 2: putting forth and speaks to what it is that you

930
00:39:33,960 --> 00:39:37,120
Speaker 2: could bring that company were they to start compensating you

931
00:39:37,160 --> 00:39:38,839
Speaker 2: fairly well, what it is.

932
00:39:38,760 --> 00:39:40,520
Speaker 1: That you agree to Yes, especially again, if you have

933
00:39:40,560 --> 00:39:43,040
Speaker 1: the ability kind of to highlight this is the progress,

934
00:39:43,080 --> 00:39:45,360
Speaker 1: the route I see myself taking, and the ways I

935
00:39:45,360 --> 00:39:47,759
Speaker 1: see myself benefiting the company. They might say, oh, yes,

936
00:39:47,760 --> 00:39:49,920
Speaker 1: it's not just the degree, but like the kind of

937
00:39:50,000 --> 00:39:53,520
Speaker 1: initiative she's taking shows that, Hey, guess what, Emily, we

938
00:39:53,520 --> 00:39:55,080
Speaker 1: should be paying her a lot more like and she

939
00:39:55,320 --> 00:39:57,400
Speaker 1: she really can take on this assume these positions. We

940
00:39:57,880 --> 00:40:00,000
Speaker 1: hope she would, but it takes those conversations to really

941
00:40:00,280 --> 00:40:01,640
Speaker 1: I think shed light on that sometimes.

942
00:40:01,800 --> 00:40:03,280
Speaker 3: Plus it costs more to hire.

943
00:40:03,080 --> 00:40:04,839
Speaker 2: And you know, to bring on a new hire. So

944
00:40:04,880 --> 00:40:06,560
Speaker 2: the fact that they're like, all right, well we already

945
00:40:06,560 --> 00:40:08,319
Speaker 2: know it's going to cost us this much and not

946
00:40:08,360 --> 00:40:11,080
Speaker 2: having that role filled you highlight that upside potential. Like

947
00:40:11,120 --> 00:40:12,520
Speaker 2: these are all the different things that are going through

948
00:40:12,560 --> 00:40:16,120
Speaker 2: an HR manager's mind when you take the initiative and

949
00:40:16,120 --> 00:40:18,359
Speaker 2: start having these kind of conversations. But Emily, we hope

950
00:40:18,360 --> 00:40:21,160
Speaker 2: that gets you pointed in the right direction. Joel, let's

951
00:40:21,160 --> 00:40:23,440
Speaker 2: get to our beer. The you want to read it

952
00:40:23,440 --> 00:40:25,400
Speaker 2: this time because it's such a wacky name.

953
00:40:25,280 --> 00:40:25,719
Speaker 3: Y' I'll do it.

954
00:40:25,719 --> 00:40:28,799
Speaker 1: This one is called the Garden of Earthly Delights. It's

955
00:40:29,000 --> 00:40:32,120
Speaker 1: it's gotten eden esque or a picture on the front,

956
00:40:32,320 --> 00:40:34,640
Speaker 1: I would say, eating esk. But also, what's a guitar

957
00:40:34,680 --> 00:40:38,200
Speaker 1: world Pangaea? I don't know what's what's it called Pandora?

958
00:40:38,320 --> 00:40:38,680
Speaker 2: Pandora?

959
00:40:38,840 --> 00:40:39,920
Speaker 3: That's it? Yeah? Yeah, that's right?

960
00:40:41,320 --> 00:40:44,719
Speaker 2: Is that like that's like the contents before that? Whatever?

961
00:40:44,800 --> 00:40:45,040
Speaker 3: Yep.

962
00:40:45,360 --> 00:40:46,960
Speaker 2: So this one was gonna I thought you were gonna

963
00:40:46,960 --> 00:40:48,839
Speaker 2: throw out. It's got an East of Eden like feel

964
00:40:48,880 --> 00:40:50,880
Speaker 2: to it because it's it's kind of got all the

965
00:40:50,920 --> 00:40:53,920
Speaker 2: beauties of a garden but exceptercity thrown in there at

966
00:40:53,920 --> 00:40:55,879
Speaker 2: a prehistoric time. But it's also a little off kilter.

967
00:40:56,040 --> 00:41:00,480
Speaker 1: Yeah, yes, true. Well, this one is really interesting in

968
00:41:00,680 --> 00:41:03,560
Speaker 1: the ingredients. It's a barrel aged golden sour with carrots,

969
00:41:03,880 --> 00:41:07,439
Speaker 1: coconut curry spices, and vanilla bean. Who are your thoughts

970
00:41:07,440 --> 00:41:08,120
Speaker 1: on this one, Budd.

971
00:41:07,960 --> 00:41:09,200
Speaker 2: Yeah, this one might be at the top of the

972
00:41:09,200 --> 00:41:12,359
Speaker 2: heap as far as the most interesting, kind of out

973
00:41:12,360 --> 00:41:15,200
Speaker 2: there beers I've ever had, but also pretty dang good. Yeah,

974
00:41:15,280 --> 00:41:17,360
Speaker 2: because I feel like I've had some other wacky beers

975
00:41:17,360 --> 00:41:20,080
Speaker 2: out there that were just bad. Right, Like what was

976
00:41:20,120 --> 00:41:22,160
Speaker 2: the I'm thinking of the pickle beer that we've had before.

977
00:41:22,200 --> 00:41:24,319
Speaker 2: It was just like I can't drink this. I'm sorry,

978
00:41:24,480 --> 00:41:26,239
Speaker 2: Like it's just it's kind of weird, it's out there.

979
00:41:26,719 --> 00:41:29,560
Speaker 2: This something about the flavors, it kind of comes together.

980
00:41:29,880 --> 00:41:32,239
Speaker 2: There's a whole I'll say. The first thing that I

981
00:41:32,320 --> 00:41:36,160
Speaker 2: noticed was the acidity. Man, this is a really acidic,

982
00:41:36,239 --> 00:41:39,080
Speaker 2: really bright golden sour. That's the first thing that I

983
00:41:39,440 --> 00:41:42,040
Speaker 2: noticed before it sort of evolved into what I perceived

984
00:41:42,120 --> 00:41:45,759
Speaker 2: is like a briny, like almost saltiness that was coming through.

985
00:41:45,840 --> 00:41:47,200
Speaker 3: Yeah. No, I think that's spot on.

986
00:41:47,520 --> 00:41:48,600
Speaker 1: I don't know if I would have been able to

987
00:41:48,640 --> 00:41:50,560
Speaker 1: characterize it like that, because I'm not a super taster

988
00:41:50,719 --> 00:41:52,160
Speaker 1: like you are, but I think.

989
00:41:52,000 --> 00:41:54,560
Speaker 2: That's I just taste weird things. I think if some

990
00:41:54,600 --> 00:41:55,000
Speaker 2: of these.

991
00:41:54,920 --> 00:41:56,960
Speaker 1: Ingredients had been done, had been dialed up a little

992
00:41:56,960 --> 00:41:59,520
Speaker 1: bit further and actually would have taken away from the beer.

993
00:41:59,800 --> 00:42:01,880
Speaker 2: Okay, yeah, I thought you're about to say, if they

994
00:42:01,920 --> 00:42:03,399
Speaker 2: would have just cranked it up even more, I would

995
00:42:03,400 --> 00:42:03,920
Speaker 2: have enjoyed it.

996
00:42:03,960 --> 00:42:06,000
Speaker 1: I was like, no, way, I'm really glad that the

997
00:42:06,040 --> 00:42:08,279
Speaker 1: golden sour was the barrel age. Golden sour was the

998
00:42:08,280 --> 00:42:10,759
Speaker 1: main thing I tasted, and those ingredients were like they

999
00:42:10,760 --> 00:42:13,280
Speaker 1: played a smaller role, right they they were they were highlights.

1000
00:42:13,280 --> 00:42:16,960
Speaker 1: They were more complimentary the golden sour. So I think

1001
00:42:17,000 --> 00:42:18,799
Speaker 1: if like the curry spice had been downed up five,

1002
00:42:18,800 --> 00:42:19,759
Speaker 1: I would have liked it.

1003
00:42:19,840 --> 00:42:22,160
Speaker 2: Yeah, Like do you like do you like curry?

1004
00:42:22,200 --> 00:42:22,360
Speaker 3: I do?

1005
00:42:22,480 --> 00:42:22,560
Speaker 4: Like?

1006
00:42:22,640 --> 00:42:25,279
Speaker 2: Okay, Like there's acid and then there was brininess, but

1007
00:42:25,320 --> 00:42:27,680
Speaker 2: then the curry flavors are what kind of came through next,

1008
00:42:27,800 --> 00:42:29,680
Speaker 2: But the curry mixed with the coconut, this is like

1009
00:42:29,680 --> 00:42:33,360
Speaker 2: a chicken curry bowl right right right here beer, which

1010
00:42:33,400 --> 00:42:36,440
Speaker 2: is like totally crazy, but I kind of actually liked it,

1011
00:42:36,480 --> 00:42:38,560
Speaker 2: and the fact that it was aged on oak as well,

1012
00:42:38,560 --> 00:42:41,760
Speaker 2: and so it all kind of some of those tasting

1013
00:42:41,760 --> 00:42:43,759
Speaker 2: notes can be like harsh if on their own, but

1014
00:42:43,800 --> 00:42:45,279
Speaker 2: you kind of age it and it helps it to

1015
00:42:45,480 --> 00:42:48,960
Speaker 2: just mellow mellow outland for the flares to meld together.

1016
00:42:49,760 --> 00:42:52,160
Speaker 2: I don't know what they're thinking when they made this beer,

1017
00:42:52,200 --> 00:42:54,400
Speaker 2: but actually I kind of dig it. I'm into it.

1018
00:42:54,440 --> 00:42:54,840
Speaker 3: I agree.

1019
00:42:54,920 --> 00:42:58,080
Speaker 1: Yeah, interesting beer from the folks over at Burial. Definitely

1020
00:42:58,080 --> 00:42:59,640
Speaker 1: we're checking this out. If you're able to pick it up,

1021
00:43:00,120 --> 00:43:00,560
Speaker 1: that's going to do it.

1022
00:43:00,600 --> 00:43:01,200
Speaker 2: For this episode.

1023
00:43:01,239 --> 00:43:03,560
Speaker 1: We'll have links to some of the stuff we mentioned

1024
00:43:03,600 --> 00:43:05,880
Speaker 1: up on the show notes at howtomoney dot com. Of course,

1025
00:43:06,280 --> 00:43:08,880
Speaker 1: there's all sorts of resources up there to help you

1026
00:43:08,920 --> 00:43:10,160
Speaker 1: in your personal finance journey.

1027
00:43:10,239 --> 00:43:12,399
Speaker 2: Yes, right, if you find those resources helpful, we would

1028
00:43:12,440 --> 00:43:14,760
Speaker 2: love it if you left us a solid review.

1029
00:43:14,760 --> 00:43:15,720
Speaker 3: We actually it's.

1030
00:43:15,600 --> 00:43:18,000
Speaker 2: Been a minute since we've asked for war reviews, but

1031
00:43:18,000 --> 00:43:20,080
Speaker 2: they really do help us so much in getting the

1032
00:43:20,080 --> 00:43:22,440
Speaker 2: word out and helping others to find the show. So

1033
00:43:22,719 --> 00:43:25,440
Speaker 2: head to wherever it is that you listen to your podcast,

1034
00:43:25,520 --> 00:43:29,359
Speaker 2: Spotify or Apple in particular cast. Those two would help

1035
00:43:29,400 --> 00:43:31,560
Speaker 2: a lot. They're the heavy hitters. We appreciate it, of course.

1036
00:43:32,280 --> 00:43:34,359
Speaker 1: All right, buddy, that's going to be it until next time.

1037
00:43:34,520 --> 00:43:36,680
Speaker 1: Best Friends Out, Best Friends Out,