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Speaker 1: Welcome to how to Money.

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Speaker 2: I'm Joel and I am Matt, and today we're answering

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Speaker 2: your listener questions.

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Speaker 1: You gotta switch it up a little bit, say my

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Speaker 1: name a little bit differently, same one name my name

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Speaker 1: for a while there. I feel like I struggled with

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Speaker 1: saying I'm Matt, but I say it a little more

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Speaker 1: particulately at this point a little bit clearly. Yeah, your

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Speaker 1: podcasting skills have come a long way, dramatically improved over

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Speaker 1: the past five years. We are taking listener questions during

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Speaker 1: this Monday episode of the Hota Money podcast. We've got

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Speaker 1: a question that it has to do with a not

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Speaker 1: so great fidelity account. That's right, we're criticizing the almighty

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Speaker 1: fidelity and we'll get to that one. There's another question

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Speaker 1: about geographic arbit and someone else is asking about financially

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Speaker 1: preparing for a kiddo what that entails. We'll get to

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Speaker 1: that plus more during this episode. Buddy, looking forward to it.

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Speaker 2: And by the way, there's a there's gonna be kind

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Speaker 2: of a laundry list answer on the preparing for a

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Speaker 2: child standpoint. There's a lot to really consider, so we'll

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Speaker 2: get into all that in just a second, but speak

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Speaker 2: for yourself.

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Speaker 1: I'm going to give a long winded we go in

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Speaker 1: depth here on the podcast. I'm going to say to

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Speaker 1: to like, just do all these five to tings to consider,

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Speaker 1: is what I'm saying. Like when it's it's not just

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Speaker 1: one thing, right, it's not I think of a laundry list,

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Speaker 1: and it just sounds like do this. That's not okay.

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Speaker 1: I just meant there's a lot to talk about. Maybe

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Speaker 1: I just don't know what laundry list means. Maybe you've

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Speaker 1: never done laundry.

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Speaker 2: No, you do, all right, let's uh Before we get

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Speaker 2: to our listener questions, matt I felt like it was

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Speaker 2: pertinent and worth mentioning. We've talked about Mint going away.

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Speaker 2: Mint is transitioning users to and which has like been

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Speaker 2: one of the most popular and free budgeting software is

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Speaker 2: in existence. Well, the folks over into it said, we're

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Speaker 2: shutting it down. And so if you want to, you know,

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Speaker 2: continue with some of what Mint offers, well you're gonna

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Speaker 2: have to come over to credit Karma and use that.

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Speaker 2: And so people are trying to figure that out. But

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Speaker 2: then there are other alternatives that we've mentioned that are

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Speaker 2: potentially gonna be better suited for you than Mint, even

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Speaker 2: if it means paying a little bit of money. Well,

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Speaker 2: listener Alex reached out and he mentioned something that we've

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Speaker 2: actually never heard of. It's funny you mentioned we're gonna

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Speaker 2: talk smack about Fidelity a second, but we've.

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Speaker 1: Got some good news.

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Speaker 2: Yeah, we'll say something good on the Fidelity front. He

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Speaker 2: mentioned there's something called Fidelity Full View, and I'd never

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Speaker 2: I didn't even know this existed.

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Speaker 1: Did you? I did not know. So this is for

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Speaker 1: some reason somebody reached out to us.

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Speaker 2: Yeah, there's like nothing out there on Fidelity full of View,

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Speaker 2: Like almost nobody used it. There's like a Reddit thread

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Speaker 2: or something like that, and so maybe it's because it sucks. No,

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Speaker 2: it actually, I mean we both looked into it.

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Speaker 1: It doesn't suck. No, It's got a lot of functionality.

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Speaker 1: It's built into like basically, if you have an account

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Speaker 1: with Fidelity, you go into there, and so I guess

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Speaker 1: the first main tab over on the left, it's like

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Speaker 1: account slash Trade. If you click that, there's a big

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Speaker 1: dropdown and one of the options is this thing called

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Speaker 1: full of You, and it's got a little next to it.

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Speaker 1: But obviously with it being Fidelity, there's more of a

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Speaker 1: focus specifically on net worth, Like that's the first tab

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Speaker 1: once you click it. It's almost kind of like empowered

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Speaker 1: does right, Yeah, exactly, which makes sense because it's immediately

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Speaker 1: automatically linked to your different retirement accounts, so they have

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Speaker 1: the most up to date information. But what they don't

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Speaker 1: have the most necessarily up to date information are the

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Speaker 1: different accounts that you spend on, so like your credit

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Speaker 1: card or you can link thing again, you link them,

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Speaker 1: but you know there's always that lag, that delay, yeah,

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Speaker 1: as to when it updates, so you can maybe expect

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Speaker 1: a little bit of that lag. But guess what your

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Speaker 1: net worth is going to be the absolute most up

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Speaker 1: to date number. That's right, you'll ever see. Yeah, No,

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Speaker 1: I think it's I think it's cool. And if you're like,

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Speaker 1: oh man, I'm glad. Matt and Joel mentioned some of

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Speaker 1: those paid services that are in the seventy to one

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Speaker 1: hundred dollars range per year, and some of them sound

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Speaker 1: cool and heck, maybe some of them might actually help

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Speaker 1: me improve my finances, but I'm too much of a

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Speaker 1: cheap skate to even give them a try. Well, this

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Speaker 1: might be the fidelity full of you might be worth considering,

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Speaker 1: especially if you already have an account with Fidelity exactly.

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Speaker 2: So, yeah, go in there to the back end, look

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Speaker 2: it up and see if it makes sense for you.

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Speaker 2: I think it seems like a decent number of people

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Speaker 2: have found it helpful enough to stick with it. It's

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Speaker 2: got enough functionality, not as much as some of those

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Speaker 2: paid services, and not as slick of an interface, that's

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Speaker 2: for sure, Like cop pilot, Weilot, I mean that is

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Speaker 2: your slickest interface everts Like I did Gorgeous.

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Speaker 1: I did not look and see if they have an app?

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Speaker 1: Do they? Is there a full view app? Oh? That's

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Speaker 1: a good question. I'm not sure either way. You choose

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Speaker 1: it on desktop? Yeah, I looked it up here at

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Speaker 1: the office as well. But again, especially if you have

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Speaker 1: a Fidelity account, it already has some information there, and

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Speaker 1: so you might, i don't know, be a third of

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Speaker 1: the way there. It's entering all of your different accounts. Yeah.

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Speaker 1: So yeah, if you have not yet set up a

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Speaker 1: net Worth tracker, or if you have not yet set

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Speaker 1: up an account with some of the new providers that

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Speaker 1: we may have mentioned, head over to the show notes.

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Speaker 1: We'll have the link to where it is that you

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Speaker 1: can just click that and they'll ask you to log

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Speaker 1: in and you might find it helpful.

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Speaker 2: It's free, it's already there. It's important to mention check

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Speaker 2: it out. Big thanks to Alex for giving us the

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Speaker 2: heads up on this. And if you know of something

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Speaker 2: we don't know about, which there's a lot that Matt

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Speaker 2: and I don't know about. We an eel knows a lot,

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Speaker 2: but it doesn't know everything. That's why I tell my

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Speaker 2: kids all the time. My son's always like, wait, do

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Speaker 2: you know that guy's name? And I'm like, no, I

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Speaker 2: don't know. But so there is a bunch that we

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Speaker 2: don't know. And so if you, if you have insight,

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Speaker 2: if you've got something that like you're like, wait a second,

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Speaker 2: how come I've never heard them talk about that, send

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Speaker 2: us an email. Man, we'd love to hear it and

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Speaker 2: be able to share it with your fellow listener. So

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Speaker 2: thank you to Alex for doing that.

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Speaker 1: Matt.

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Speaker 2: Let's mention the beer we're having on this episode. This

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Speaker 2: one's called uh la Vista Mexican Lagger by Frog Rock Brewery.

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Speaker 2: Is it ostelle ostelle la Vista Mexican log? Is it

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Speaker 2: ostella Vista?

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Speaker 3: Oh?

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Speaker 1: Like the terminator? Wow? I should have known. How did

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Speaker 1: I mess that one up? Well, because there's it's not

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Speaker 1: like it's a terminator theme, it's just random. I just realized. Well,

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Speaker 1: so it's brewed in Ostell, Georgia, which is a suburb

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Speaker 1: of Atlanta. I used to live well technically in Powder

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Speaker 1: Springs for close today there, but Ostell is very close

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Speaker 1: to Powder Springs. Why I should have gotten that astell Avista.

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Speaker 1: That's all good.

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Speaker 2: Next pun, but big thanks to listener Joe for for

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Speaker 2: giving us this year in crowl or form. So look

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Speaker 2: forward to having this one given our thoughts at the

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Speaker 2: end of the episode. But Matt, let's move on. Let's

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Speaker 2: get to the listener questions. If you have a money question,

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Speaker 2: Matt and I would love to tackle it. The website

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Speaker 2: for the instruction simple instructions for how to submit your

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Speaker 2: voice memo is Howtomoney dot com slash ask. It takes

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Speaker 2: all of a minute to record yourself send it over

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Speaker 2: to us. Hopefully we can take yours on the next

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Speaker 2: ask HTAM episode. But Matt, this first question is from

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Speaker 2: a listener who's like saying, I'm thinking about having kids,

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Speaker 2: but how do I get ready for that?

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Speaker 3: Hey, Joel, Matt and Christy calling from California. Been listening

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Speaker 3: to your show about a year now. Actually came up

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Speaker 3: on my top podcasts. I'm by Spotify Wrapped anyways, having

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Speaker 3: been a listener for a while now. I think my

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Speaker 3: husband and I have done all the recommended things like

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Speaker 3: creating emergency fun savings, maxing that for our own k,

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Speaker 3: investing in hsca, et cetera. We only have about like

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Speaker 3: ten k isshaw car and student loan debt left, but

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Speaker 3: we feel pretty confident we can wrap up in a

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Speaker 3: few months. We were married for a year now and

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Speaker 3: considering all the things that takes to have that first kid,

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Speaker 3: would really appreciate any advice you guys have about preparing

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Speaker 3: for a baby financially and just general advice as like

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Speaker 3: dads yourselves.

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Speaker 1: Yeah, I love the podcast, Christy, Thank you so much

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Speaker 1: for that question. And yes, it was a whole lot

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Speaker 1: of fun to see some of those Spotify Wrapped visuals

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Speaker 1: going around. What's funny is all the meme versions.

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Speaker 2: Yeah, when folks are like, especially after Spotify did that

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Speaker 2: massively off and there's like, oh my god memes going

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Speaker 2: around on that.

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Speaker 1: It's so funny. But we are massively thankful for everyone

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Speaker 1: out there who has committed their podcast listening or hasn't

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Speaker 1: at least included the How To Money Show. Yeah, but Chrissy,

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Speaker 1: I love that you are thinking about the financial impact

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Speaker 1: of pro creating before you jump into the deep end.

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Speaker 1: It is well worth preparing for both mentally and financially.

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Speaker 1: That's still your resolve right now, Yes, but I mean

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Speaker 1: that being said, like it is going to be impossible

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Speaker 1: to truly fully prepare from either vantage point as well.

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Speaker 1: But it is important to think through, honestly, just how

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Speaker 1: your life might change. Well it's not how it's might

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Speaker 1: how it might change, how it will change. And I

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Speaker 1: think it's important to think through some of the other

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Speaker 1: goals that y'all might have for your lives. Like doesn't

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Speaker 1: sound like you've been married for all that long, but truly,

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Speaker 1: once kids are on the scene, it gets a little

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Speaker 1: more difficult to achieve some of those different goals. And

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Speaker 1: so think through some of these things that you might

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Speaker 1: want to accomplish before you have kids. And I'm not

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Speaker 1: trying to discourage you necessarily from having kids, but just

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Speaker 1: know that things are gonna it's it is gonna look

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Speaker 1: different the before kids. Discouraging people from having kids. Those

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Speaker 1: kids kids are the best, but it does get more difficult.

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Speaker 1: And so the reason I mentioned this is I think

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Speaker 1: there could be a temptation to continually kick that can

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Speaker 1: down the road, Like I want folks to enter into

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Speaker 1: parenthood with their eyes wide open, but sometimes that can

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Speaker 1: almost be overwhelming and you think, oh, I don't know, man, like,

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Speaker 1: are we mature enough? Can we like who's gonna let

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Speaker 1: us go home with a child from the hospital. That's

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Speaker 1: certainly how I feel. So the reason I say this

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Speaker 1: is it makes me think about identifying a period of

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Speaker 1: time when you're like, Okay, I can picture myself being

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Speaker 1: a parent at this point in time. Because literally, this

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Speaker 1: is a conversation Kitan I had. I think it feels

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Speaker 1: like during premaral counseling. But I was like, oh, I

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Speaker 1: could picture myself being a dad maybe when I'm thirty

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Speaker 1: years old. Before that, I kind of want it to

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Speaker 1: be more fun signed with just the two of us.

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Speaker 1: But I literally stuck it on the calendar, like I

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Speaker 1: in my apple of course you did. I shot ahead.

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Speaker 2: It was like five or six years ago, nine months

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Speaker 2: in reverse from that. Eight No, it's literally it's still

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Speaker 2: on the calendar.

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Speaker 1: It's funny, but January first, it's of twenty thirteen is

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Speaker 1: with a question mark. It's like, maybe have baby this

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Speaker 1: year with a question of mark. But just treat it

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Speaker 1: like any other goal that you might have. Take it seriously,

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Speaker 1: prepare for it, but also you want to make sure

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Speaker 1: you kind of weigh and balance that goal with other

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Speaker 1: goals that you might have in lie.

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Speaker 2: I disagree take Yeah, it takes the fun out of it.

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Speaker 2: Come on, you can't plan too much.

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Speaker 1: It makes me think of different strokes for different things. Yeah,

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Speaker 1: it makes it you might be more of like just

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Speaker 1: shooting from the hip. I am literally, but I do think,

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Speaker 1: but I do think. For some folks kind of thinking

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Speaker 1: that proactively and being that intentional robotically, some might say

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Speaker 1: it can go a really long way. Yeah, well, okay, it.

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Speaker 2: Makes me think of like someone who's gonna invest in

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Speaker 2: real estate. You have to take this balanced approach because

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Speaker 2: some people say I have to continue to gather information.

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Speaker 2: I have to know everything there is to know about

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Speaker 2: real estate investing before I can even consider making an offer, right,

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Speaker 2: And then there are other people who say, I hear

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Speaker 2: real estate investing is a great way to build wealth,

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Speaker 2: and they start making offers the next day, and there's

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Speaker 2: a happy medium in there, right of like, yeah, it's

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Speaker 2: important to like do your due diligence, learn some stuff,

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Speaker 2: Attend maybe some real estate investor meetings, read a couple

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Speaker 2: of books, start listening to a podcast, whatever it may

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Speaker 2: be before you like will and nearly start making offer,

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Speaker 2: save up enough of a down payment, have enough understanding

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Speaker 2: about where you're planning to invest. But then it's also

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Speaker 2: possible to overdo that and to say.

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Speaker 1: What thing called analysis paralysis.

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Speaker 2: Yeah, I'm not fully prepared yet, and I think some

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Speaker 2: people do that too. And the truth is, like when

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Speaker 2: you're talking about having kids, Matt, you and I we

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Speaker 2: went to the was the class where the birthing class

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Speaker 2: right where you didn't prepare for that.

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Speaker 1: I forgot.

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Speaker 2: Emily read what to Expect when when you're expecting, and

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Speaker 2: and that's a that's like a rite of passage I

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Speaker 2: think people go through and understandably.

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Speaker 1: So Emily Oster, Yeah, she's the crip sheet. So she's

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Speaker 1: an economist. So basically Christy, if you're listening and you're

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Speaker 1: like really into the numbers, if you haven't checked out

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Speaker 1: her book, or other folks out there who are expecting

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Speaker 1: crip sheet. And she's got a book too about treating

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Speaker 1: your family basically like a company. Yeah, and again as

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Speaker 1: far as efficiency and if you're more into the numbers

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Speaker 1: and into the data, she is an economist and she

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Speaker 1: attacks motherhood from this from the point of view of

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Speaker 1: the numbers and the figures and what the data shows,

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Speaker 1: as opposed to kind of like full on wing in it.

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Speaker 2: Yeah, she's super interesting way. But yeah, I guess I

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Speaker 2: just want to throw that out there. It's you can

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Speaker 2: overthink preparation too, right, totally. But when it comes to

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Speaker 2: like what you should be preparing for, let's talk about

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Speaker 2: finances first. You're doing the important stuff already, Like you're

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Speaker 2: maxing out the floor Okay, that's huge, right, You're you're

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Speaker 2: socking money into an HSA, also massive, And you've also

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Speaker 2: got that e fund saved out, that all important emergency fund,

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Speaker 2: which is clutch and so the only potential account you

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Speaker 2: might be missing as a roth IRA if you're able

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Speaker 2: to contribute to that, And it might even be worth

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Speaker 2: not maxing the four to one case so that you

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Speaker 2: can fully fund a roth IRA if you're able to

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Speaker 2: do that. But that also might be part of the

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Speaker 2: et cetera. That you mentioned, Like your question is true,

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Speaker 2: but you know, plus, you're gonna be paying off that

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Speaker 2: debt that you said that you have lingering around within

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Speaker 2: just a few months. So debt free with so much

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Speaker 2: going towards investments is a great place to be. And

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Speaker 2: after that debt gets paid off, you're gonna have even

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Speaker 2: more free cash flow well in advance of the baby coming.

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Speaker 2: So all in all, at least from kind of an

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Speaker 2: overall holistic financial picture, Christy, it sounds like you're doing great.

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Speaker 2: It sounds like you're well on your path to financial independence.

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Speaker 2: You're making the right moves, and so it's I wouldn't

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Speaker 2: be like, oh, no, wait, you're not in the financial

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Speaker 2: position to have a child.

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Speaker 1: I definitely don't think that's the case. Yeah, she's got

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Speaker 1: a great foundation. But let's talk now then beyond that,

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Speaker 1: essentially the money gears that she's already worked through, let's

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Speaker 1: talk about some proactive steps you can take towards preparing

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Speaker 1: for having a kid. And basically we're talking about her

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Speaker 1: are labor and delivery costs and so Joe, you mentioned

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Speaker 1: them freeing up some of that cashlow after paying off

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Speaker 1: that car loan, after paying off some of that student

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Speaker 1: loan debt. By the way, you can go frugal or cheap.

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Speaker 2: Not frugal on this, I suggested, since my mother in

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Speaker 2: law's actually a neonatal nurse, she's like knows what she's doing.

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Speaker 2: I was like, what if we had the baby at

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Speaker 2: home with your mom here? And my wife looked at

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Speaker 2: me like, you're insane, I can't believe.

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Speaker 1: Let's just take the homegrown approach. That almost got my

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Speaker 1: head loped off. No, but take that money that you've

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Speaker 1: got going towards some of that debt and use that

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Speaker 1: to sock up a hospital and birth fund like a

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Speaker 1: sinking like a baby sinking fund essentially, which sounds not great.

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Speaker 1: So let's call it a baby savings bucket. But how

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Speaker 1: much that you'll need to set aside for that is

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Speaker 1: going to certainly depend on your insurance. It could cost

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Speaker 1: a few hundred bucks, it could cost a few thousand

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Speaker 1: dollars or potentially even more. But it is a good

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Speaker 1: idea just to take a look at your insurance in

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Speaker 1: order to figure out what's going to be covered, what's

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Speaker 1: not going to be covered. But since you're planning ahead,

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Speaker 1: if the birth won't happen until let's say twenty twenty five,

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Speaker 1: you'll have the chance even to switch up your plan

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Speaker 1: during open enrollment the fall before avoiding the high deductible

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Speaker 1: health care plans for the year that you know we're

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Speaker 1: going to incur a whole lot of expenses, that might

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Speaker 1: make a ton of sense, And so the best way

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Speaker 1: to figure that out is just simply to crunch the numbers.

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Speaker 1: Figure out how much are we going to be now

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Speaker 1: paying in premiums every single month? But what does that

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Speaker 1: mean that we'll be able to save on in the

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Speaker 1: event of when we actually do have that baby.

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Speaker 2: That's right, Yeah, most of the time, for relatively healthy folks,

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Speaker 2: the high deductible health care plan makes a lot of

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Speaker 2: sense if you have enough savings on hand. But if

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Speaker 2: you're like, wait a second, this year is going to

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Speaker 2: be the year we turn on this bigot, We're going

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Speaker 2: to spend a lot on healthcare, and when you have

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Speaker 2: a baby.

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Speaker 1: That's the year that happens. You spend a bunch of money. Exactly.

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Speaker 1: You want to be prepared for that.

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Speaker 2: And compare those different insurance offerings and pick the right

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Speaker 2: one given kind of your specific circumstances. And on the

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Speaker 2: note of open enrollment, you might have access to a

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Speaker 2: dependent care FSA. So I would say start thinking about

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Speaker 2: childcare and what your likely plans are. This is one

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Speaker 2: of those areas that's become.

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Speaker 1: Fraught with peril for assuming yea, assuming one of y'all

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Speaker 1: doesn't already stay at.

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Speaker 2: Home, right, yeah, And so like, yeah, you might have grandparents,

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Speaker 2: let's say, who are eager to volunteer, or you might not,

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Speaker 2: and that can make a difference in how much you

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Speaker 2: need to sock aside for that. But starting to save

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Speaker 2: and then using the right account like the FSA to

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Speaker 2: avoid taxes could be wise. And again like maybe that

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Speaker 2: first year you've got enough time off from your employer

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Speaker 2: where you don't need childcare. But that's something to started

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Speaker 2: thinking ahead about. And it's a good idea, Matt, kind

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Speaker 2: of like you were alluding to to have that conversation

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Speaker 2: with your partner about future work plans and staying at

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Speaker 2: home with the kids, because either one of you might

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Speaker 2: decide at some point from a financial and from a

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Speaker 2: lifestyle perspective that is something you like to pursue. Matt,

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Speaker 2: and I feel like the tipping point is often the

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Speaker 2: third child. That is when it's like, wait a second,

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Speaker 2: one of our careers needs to go potentially if you've

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Speaker 2: got three kids, like under the age of five, not

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Speaker 2: in school yet, I mean maybe not, but either way,

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Speaker 2: it's a topic that should be on the table, and

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Speaker 2: if either one of you are interested or considering going

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Speaker 2: that route, it's better to at least explore living on

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Speaker 2: one income sooner rather than later. Oh yeah, kind of

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Speaker 2: get used to the idea and used to the mechanics

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Speaker 2: of a smaller income funneling the extra income into savings

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Speaker 2: city you are even more prepared, totally.

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Speaker 1: Yeah, fewer disposable dollars. That's a reality of oftentimes having

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Speaker 1: a kid, right, because of the inability for one partner

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Speaker 1: to work. And that being said, we are so glad

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Speaker 1: that you've been making so much progress on your finances

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Speaker 1: up until this point. But again, as your family grows,

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Speaker 1: your savings rate it might go down a bit. And

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Speaker 1: that's totally okay. Like kids, a they're worth it. But

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Speaker 1: it's also why we're fans of front loading the sacrificers, right,

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Speaker 1: just having a higher savings rate before you have kids,

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Speaker 1: before they come along. And that doesn't mean that we're

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Speaker 1: intentionally like encouraging you to slack off when it comes

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Speaker 1: to savings and investing once you do have kids. I'm

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Speaker 1: just saying to give yourself a little bit of grace

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Speaker 1: if you do need to pull back a little bit

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Speaker 1: in order to feel more comfortable with a new budget

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Speaker 1: that now includes not only another family member, but possibly

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Speaker 1: even less income that's being generated by one of y'all

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Speaker 1: who decides to stay home.

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Speaker 2: That's why it's great that you've been able to do

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Speaker 2: as much as you have up until this point. But

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Speaker 2: if you're saying, like, listen, no, we are dialing back

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Speaker 2: to income, we have other goals. Maybe we're glad we

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Speaker 2: did we're able to do as much as we did

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Speaker 2: during those early working years, but we're okay with kind

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Speaker 2: of dialing back and not being as laser focused on

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Speaker 2: those investment accounts so that we can, yeah, enjoy a

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Speaker 2: little more flexibility as of family.

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Speaker 1: And that's sort of what else get in towards the beginning,

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Speaker 1: I guess like thinking through some of the different goals

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Speaker 1: that you might have and to realize that things change.

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Speaker 1: Even though you might think, no, no, no, we're going

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Speaker 1: to keep things exactly the same, they don't stay exactly

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Speaker 1: the same. YEA even if on paper a lot of

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Speaker 1: things are able to be maintained, whether it's from an

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Speaker 1: employment standpoint, there's still going to be other costs, like

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Speaker 1: you mentioned, even childcare, but in addition to that food,

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Speaker 1: just some of the other expenses that come along with

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Speaker 1: adding more members to your family.

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Speaker 2: Okay, Well, on that note, that makes me think of

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Speaker 2: like one last thing that we probably need to mention

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Speaker 2: to Christy. And there's probably a lot of things we

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Speaker 2: didn't mention that are worth considering, but at least one

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Speaker 2: thing is buying things secondhand. I would put up the

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Speaker 2: bat signal to friends and family and I would say, hey, listen.

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Speaker 1: Once you are pregnant, yeah, and you've been pregnant for

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Speaker 1: what first trimesters typically that's when you start making them

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Speaker 1: get rusty, man, and it's it's been uh over four

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Speaker 1: years baby, I don't even know. Yeah, twelve weeks. Yeah.

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Speaker 2: And but like then start putting the because like think

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Speaker 2: of folks, know all the free hand me downs and

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Speaker 2: stuff like that, you cash people love to give you

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Speaker 2: baby clothes, and and think about maybe what you need

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Speaker 2: to buy new and what you can get away with

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Speaker 2: buying used. Right, the eight hundred dollars crib could be adorable.

432
00:18:25,760 --> 00:18:28,080
Speaker 2: A four hundred and fifty dollars bastinet or stroller or

433
00:18:28,119 --> 00:18:30,800
Speaker 2: something that might seem like a necessity. But truly, the

434
00:18:30,840 --> 00:18:33,040
Speaker 2: more we can rely on hand me downs, borrowing or

435
00:18:33,080 --> 00:18:35,040
Speaker 2: Facebook marketplace fines, the better off you're going to be.

436
00:18:35,280 --> 00:18:37,000
Speaker 2: And you really, obviously you want a couple of cute

437
00:18:37,040 --> 00:18:38,560
Speaker 2: new outfits or something like that for the baby.

438
00:18:39,080 --> 00:18:42,040
Speaker 1: Obviously I'm not going to assume. Okay, I'm saying you

439
00:18:42,119 --> 00:18:43,639
Speaker 1: might want to go full on for a little baby,

440
00:18:43,720 --> 00:18:45,280
Speaker 1: go all second hand. There's a lot of cute you

441
00:18:45,400 --> 00:18:48,160
Speaker 1: stuff out there that willing. That's true, have their friends

442
00:18:48,280 --> 00:18:49,560
Speaker 1: kid also take pictures?

443
00:18:49,520 --> 00:18:51,200
Speaker 2: You're right, Well, the thing is like when they're growing

444
00:18:51,200 --> 00:18:54,560
Speaker 2: so fast, it's like it can be crazy expensive because

445
00:18:54,760 --> 00:18:56,880
Speaker 2: i mean, someone sometimes they're born and they're already wearing

446
00:18:56,920 --> 00:18:58,960
Speaker 2: six month old clothes depending on how big they are. Right, So,

447
00:19:00,119 --> 00:19:01,879
Speaker 2: some of the stuff you might have gotten as a

448
00:19:01,880 --> 00:19:04,720
Speaker 2: baby shower present might already be just like too small,

449
00:19:04,800 --> 00:19:06,679
Speaker 2: not fit the new baby or something like that.

450
00:19:06,720 --> 00:19:09,840
Speaker 1: So I guess just can be strategic about what about

451
00:19:09,840 --> 00:19:11,600
Speaker 1: the used things that you get, Just like there are

452
00:19:11,640 --> 00:19:15,840
Speaker 1: certain things like car seats, that's one where there's a racket,

453
00:19:15,920 --> 00:19:19,520
Speaker 1: and somehow the manufacturers of car seats, they somehow have

454
00:19:19,560 --> 00:19:21,920
Speaker 1: made it to where they have expiration dates. And I'm

455
00:19:21,920 --> 00:19:24,480
Speaker 1: not saying to ignore that, Like we bought new car

456
00:19:24,520 --> 00:19:28,160
Speaker 1: seats for our kids, but everything else, like literally pretty

457
00:19:28,240 --> 00:19:30,359
Speaker 1: much everything else you can you can buy used that

458
00:19:30,440 --> 00:19:33,280
Speaker 1: It makes me think of before we had our first daughter,

459
00:19:33,440 --> 00:19:35,920
Speaker 1: we bought a mini crib I think for forty bucks

460
00:19:36,200 --> 00:19:38,600
Speaker 1: and a it was more affordable because we've talked. It's

461
00:19:38,600 --> 00:19:40,040
Speaker 1: been so long since we talked about this, but the

462
00:19:40,040 --> 00:19:42,920
Speaker 1: mini crib, it's a smaller crib. And in Europe they

463
00:19:42,920 --> 00:19:44,360
Speaker 1: just called it sense if it's called the mini crib,

464
00:19:44,400 --> 00:19:46,800
Speaker 1: they just call them cribs. But here in the US

465
00:19:47,320 --> 00:19:52,359
Speaker 1: cars they're supersized exactly. But we paid something like forty

466
00:19:52,359 --> 00:19:54,080
Speaker 1: bucks for that thing, and we used it for i

467
00:19:54,119 --> 00:19:58,360
Speaker 1: want to say, over seven years. And amateurize that out.

468
00:19:58,520 --> 00:20:01,520
Speaker 1: That's like barely over five bucks a year for someplace

469
00:20:01,640 --> 00:20:03,359
Speaker 1: for the kid to sleep. It's like four cents of sleep.

470
00:20:03,400 --> 00:20:08,000
Speaker 1: Oh my god. If you're into the numbers really crunch up.

471
00:20:08,040 --> 00:20:10,240
Speaker 1: But you can be choosy when it comes to what

472
00:20:10,280 --> 00:20:12,159
Speaker 1: it is that you buy new, the things that you

473
00:20:12,200 --> 00:20:15,000
Speaker 1: buy used, and the things that were just where there's

474
00:20:15,040 --> 00:20:16,680
Speaker 1: a massive amount of sayings because you mentioned like a

475
00:20:16,720 --> 00:20:20,879
Speaker 1: multi hundred dollars fancy crib. It just depends on what

476
00:20:20,920 --> 00:20:23,520
Speaker 1: your priorities are and whatever it is that you want

477
00:20:23,560 --> 00:20:24,920
Speaker 1: your kid to be in there. Yes, for sure.

478
00:20:25,080 --> 00:20:27,000
Speaker 2: Well, the guy who gave us this beer, by the way, Joe,

479
00:20:27,000 --> 00:20:28,720
Speaker 2: we mentioned at the beginning. He and his wife, they're

480
00:20:28,720 --> 00:20:30,359
Speaker 2: about to have a baby, and I picked up this

481
00:20:30,400 --> 00:20:32,960
Speaker 2: beer giving him a stroller, a U stroller that that

482
00:20:33,000 --> 00:20:34,919
Speaker 2: we have because he needed a dragon stroller. And I

483
00:20:34,960 --> 00:20:36,720
Speaker 2: was like, people are pumped to come out of the

484
00:20:36,720 --> 00:20:38,520
Speaker 2: woodwork and give you stuff, even if they're just a

485
00:20:38,600 --> 00:20:41,800
Speaker 2: random podcast host where you end up listening to their stuff.

486
00:20:41,920 --> 00:20:46,080
Speaker 1: It keeps you from having to list something on with

487
00:20:46,119 --> 00:20:47,439
Speaker 1: a buyer that fails to show up.

488
00:20:47,480 --> 00:20:49,280
Speaker 2: I could have made fifty bucks, but I'd rather give

489
00:20:49,280 --> 00:20:52,040
Speaker 2: it to a guy that needs it. But Matt, We've

490
00:20:52,040 --> 00:20:54,600
Speaker 2: got more to get to on this onening, including speaking

491
00:20:54,600 --> 00:20:56,840
Speaker 2: of kiddos, We'll talk about five twenty nine accounts. How

492
00:20:56,840 --> 00:20:59,679
Speaker 2: do you actually invest the money inside of a five

493
00:20:59,760 --> 00:21:02,159
Speaker 2: twenty that account. There's some nuance to the answer of

494
00:21:02,200 --> 00:21:03,919
Speaker 2: that one. We'll get to that and more right after this.

495
00:21:12,359 --> 00:21:14,439
Speaker 1: All right, man, we are back from breaking let us

496
00:21:14,480 --> 00:21:16,919
Speaker 1: now hear from a listener out in California he's actually

497
00:21:17,040 --> 00:21:18,800
Speaker 1: thinking about selling his house.

498
00:21:19,320 --> 00:21:22,240
Speaker 4: Hi guys, great show. This is Larry from Hunting Beach.

499
00:21:22,760 --> 00:21:26,240
Speaker 4: I would like your opinion if we should sell my

500
00:21:26,320 --> 00:21:29,320
Speaker 4: house in Hunting Beach and move the Prescott, Arizona and

501
00:21:29,359 --> 00:21:32,760
Speaker 4: buy a house. The numbers make sense to me. I

502
00:21:32,800 --> 00:21:35,960
Speaker 4: think we will have more money in Arizona. My house

503
00:21:36,080 --> 00:21:39,640
Speaker 4: we paid off in five years and plan to retire

504
00:21:39,760 --> 00:21:42,600
Speaker 4: in about nine years. We should add about one million

505
00:21:42,680 --> 00:21:45,439
Speaker 4: dollars on the Huntington Beach home sale and buy a

506
00:21:45,440 --> 00:21:48,680
Speaker 4: house in Prescott for about five hundred thousand. I understand

507
00:21:48,680 --> 00:21:51,320
Speaker 4: we'd be able to exclude up to five hundred thousand

508
00:21:51,400 --> 00:21:54,840
Speaker 4: on the tax will gain if we filed jointly. So

509
00:21:54,880 --> 00:21:57,399
Speaker 4: the second part of my call is are we able

510
00:21:57,440 --> 00:22:01,080
Speaker 4: to file jointly? My wife is an independent contractor with

511
00:22:01,160 --> 00:22:05,640
Speaker 4: her own corporation. Currently, my wife and I have two

512
00:22:05,720 --> 00:22:09,080
Speaker 4: hundred and forty five thousand ira roth iras, one hundred

513
00:22:09,080 --> 00:22:12,639
Speaker 4: and ten thousand dollars in savings, eighteen thousand dollars in investments.

514
00:22:13,560 --> 00:22:16,040
Speaker 4: The only that we have is the house, so any

515
00:22:16,080 --> 00:22:18,520
Speaker 4: input would be greatly appreciated. Thank you, cheers.

516
00:22:19,680 --> 00:22:19,880
Speaker 1: Matt.

517
00:22:19,920 --> 00:22:22,879
Speaker 2: I like this question because there's a whole lot going on,

518
00:22:22,960 --> 00:22:25,400
Speaker 2: and it's like, should I move, shouldn't I move?

519
00:22:25,520 --> 00:22:26,800
Speaker 1: And the truth is.

520
00:22:27,840 --> 00:22:31,040
Speaker 2: When you're talking about moving, there's certainly a financial component

521
00:22:31,040 --> 00:22:33,639
Speaker 2: to it, but moving also goes far beyond the numbers.

522
00:22:33,840 --> 00:22:35,480
Speaker 2: So if I said, hey, Matt, should I pick up

523
00:22:35,520 --> 00:22:36,280
Speaker 2: and move to Thailand?

524
00:22:36,520 --> 00:22:39,479
Speaker 1: You would say, I don't know, Jabe. I hear it's

525
00:22:39,520 --> 00:22:41,240
Speaker 1: a lot cheaper, but there are probably other things that

526
00:22:41,280 --> 00:22:43,879
Speaker 1: you should consider before you pick up and go. And

527
00:22:44,119 --> 00:22:47,160
Speaker 1: I have been to Thailand thoroughly enjoyed it. I don't

528
00:22:47,160 --> 00:22:48,960
Speaker 1: know if I plan on living there for an extended

529
00:22:48,960 --> 00:22:50,840
Speaker 1: period of time, but I'll go back and visit because

530
00:22:50,840 --> 00:22:53,320
Speaker 1: it is inexpensive. We've talked about arbitrage back in the day,

531
00:22:53,320 --> 00:22:56,040
Speaker 1: Matt in episode three ninety two. That's a great way

532
00:22:56,119 --> 00:22:59,200
Speaker 1: to say to save money. And there's actually a really

533
00:22:59,200 --> 00:23:01,400
Speaker 1: cool website we mentioned back in that episode. It's called

534
00:23:01,400 --> 00:23:03,399
Speaker 1: the Earth Awaits. We'll link to it the show, but

535
00:23:03,800 --> 00:23:05,320
Speaker 1: it's this site that helps you dig in and see

536
00:23:05,359 --> 00:23:07,520
Speaker 1: what the average cost of living is around much of

537
00:23:07,560 --> 00:23:10,880
Speaker 1: the world. And so I guess for Larry, I would say,

538
00:23:11,160 --> 00:23:14,000
Speaker 1: are you moving for monetary reasons or for lifestyle reasons.

539
00:23:14,240 --> 00:23:17,240
Speaker 1: And this is like truly the most important question, because

540
00:23:17,480 --> 00:23:19,960
Speaker 1: it's not that those secondary benefits like the cost of

541
00:23:20,000 --> 00:23:22,560
Speaker 1: living or tax reduction, that they're not important, that they

542
00:23:22,600 --> 00:23:25,439
Speaker 1: shouldn't factor in to kind of the decision that you

543
00:23:25,520 --> 00:23:27,879
Speaker 1: make about where to live. It's just that where you

544
00:23:27,920 --> 00:23:30,680
Speaker 1: choose to live is so much more than just those things, right.

545
00:23:30,720 --> 00:23:35,880
Speaker 1: It's community, history, architecture, the beach, even hy Larry Huntington beach.

546
00:23:35,920 --> 00:23:38,240
Speaker 2: Are you okay with moving away from the beach? And

547
00:23:38,280 --> 00:23:41,359
Speaker 2: then make sure you wrestle with all of those realities

548
00:23:41,440 --> 00:23:43,800
Speaker 2: before you just up and move to Arizona. Because you're saying, listen,

549
00:23:43,800 --> 00:23:45,080
Speaker 2: we can sell this house for a million, we can

550
00:23:45,119 --> 00:23:47,280
Speaker 2: buy something there for six hundred thousand. We'll be rich

551
00:23:47,400 --> 00:23:48,200
Speaker 2: Arizona style.

552
00:23:48,240 --> 00:23:49,040
Speaker 1: This is going to be great.

553
00:23:49,200 --> 00:23:51,040
Speaker 2: There are just a lot of things to weigh, a

554
00:23:51,080 --> 00:23:53,240
Speaker 2: lot of factors to consider before you just up and

555
00:23:53,280 --> 00:23:53,560
Speaker 2: do it.

556
00:23:53,640 --> 00:23:56,240
Speaker 1: Sure. Yeah, and certainly moving to Arizona that's going to

557
00:23:56,280 --> 00:23:58,720
Speaker 1: be a far cry from moving across the world to Thailand.

558
00:23:59,119 --> 00:24:03,440
Speaker 1: Arizona culture shocking, not nearly as much. Yeah, you will

559
00:24:03,480 --> 00:24:05,520
Speaker 1: have a lot of sun, you will have a lower

560
00:24:05,520 --> 00:24:08,600
Speaker 1: cost of living there in Arizona, and so this does

561
00:24:08,640 --> 00:24:12,639
Speaker 1: already have some positive arbitrage realities while not looking like

562
00:24:12,800 --> 00:24:15,160
Speaker 1: a massive upheaval to your life. And by the way,

563
00:24:15,200 --> 00:24:18,440
Speaker 1: this is a classic retireeeplay where you've got retirees looking

564
00:24:18,440 --> 00:24:22,560
Speaker 1: to move to the sunbelt Arizona, Florida, where you've got

565
00:24:22,560 --> 00:24:25,560
Speaker 1: lower costs of living. Well, let's snow to shovel for

566
00:24:25,560 --> 00:24:28,960
Speaker 1: a lot of those les folks as well, but to

567
00:24:29,040 --> 00:24:31,800
Speaker 1: move from an expensive locale to a cheaper to a

568
00:24:31,840 --> 00:24:34,040
Speaker 1: sunnier one, and it can just help to cover over

569
00:24:34,160 --> 00:24:36,919
Speaker 1: a lack of savings, a lack of investments as well,

570
00:24:37,320 --> 00:24:40,000
Speaker 1: especially if your home has appreciated as much as it

571
00:24:40,040 --> 00:24:43,399
Speaker 1: sounds like Larry's has. This only goes to show and

572
00:24:43,440 --> 00:24:46,240
Speaker 1: to prove that oftentimes your home it's the number one

573
00:24:46,240 --> 00:24:49,359
Speaker 1: asset that many Americans have. We don't want that to

574
00:24:49,400 --> 00:24:52,560
Speaker 1: be the case it's, but it's the reality of it.

575
00:24:53,000 --> 00:24:54,639
Speaker 1: And this is one way to be able to retire

576
00:24:54,680 --> 00:24:58,200
Speaker 1: earlier than you otherwise would likely be able to. Smart

577
00:24:58,480 --> 00:25:01,520
Speaker 1: use of arbitrage can create some of those positive benefits,

578
00:25:01,720 --> 00:25:04,200
Speaker 1: and using the proceeds from the sale of that Huntington

579
00:25:04,240 --> 00:25:06,080
Speaker 1: Beach home to be able to buy a home in

580
00:25:06,080 --> 00:25:09,240
Speaker 1: Prescott for much less to pay for it in cash.

581
00:25:09,240 --> 00:25:10,800
Speaker 1: That's another advantage that you have. You don't have to

582
00:25:10,800 --> 00:25:13,240
Speaker 1: worry about interest rates. But basically, what we're talking about

583
00:25:13,240 --> 00:25:15,520
Speaker 1: here is cost of living. And this is something Joel

584
00:25:15,560 --> 00:25:17,119
Speaker 1: that I mean, I don't know how seriously Kate and

585
00:25:17,200 --> 00:25:19,679
Speaker 1: I got when it came to considering moving out west

586
00:25:19,920 --> 00:25:22,159
Speaker 1: when we were talking about moving out to Denver or

587
00:25:22,160 --> 00:25:24,560
Speaker 1: to Boise, but the first step I took helped me

588
00:25:24,600 --> 00:25:27,680
Speaker 1: to realize that, like, Okay, among many reasons, this isn't

589
00:25:27,680 --> 00:25:29,680
Speaker 1: going to work out, because in my mind, we were

590
00:25:29,720 --> 00:25:31,760
Speaker 1: just paying a whole lot to live here in Georgia,

591
00:25:31,840 --> 00:25:34,320
Speaker 1: here in Atlanta, because we were living close to the city,

592
00:25:34,320 --> 00:25:36,080
Speaker 1: and I'm like, oh, we're not taking advantage of the

593
00:25:36,119 --> 00:25:38,359
Speaker 1: things that the city has to offer. Well, that is

594
00:25:38,440 --> 00:25:41,879
Speaker 1: until I looked once I compared Atlanta to Denver, or

595
00:25:41,920 --> 00:25:45,000
Speaker 1: to Longmont or even Boise, and it's just like, oh, wow,

596
00:25:45,359 --> 00:25:51,240
Speaker 1: Atlanta is surprisingly affordable. So that pretty again, for multiple reasons,

597
00:25:51,760 --> 00:25:54,640
Speaker 1: that ended up being a non starter. We didn't get

598
00:25:54,680 --> 00:25:56,160
Speaker 1: very far with that. But make sure that you are

599
00:25:56,400 --> 00:25:58,439
Speaker 1: when you even are looking to move to other cities

600
00:25:58,480 --> 00:26:00,800
Speaker 1: in the US, look at the cost of living, and

601
00:26:00,880 --> 00:26:03,240
Speaker 1: it'll help you to see how far your dollars might go.

602
00:26:03,359 --> 00:26:05,399
Speaker 2: Yeah, and again it's it's not everything. They're parts of

603
00:26:05,440 --> 00:26:07,120
Speaker 2: the country, Like you couldn't pay me to live there,

604
00:26:07,240 --> 00:26:08,840
Speaker 2: like sorry, oh sure, And so.

605
00:26:08,800 --> 00:26:11,440
Speaker 1: It's even if they're offering old mansions for one dollar.

606
00:26:11,359 --> 00:26:15,240
Speaker 2: Right, yeah, exactly, And it's it's not even necessarily because

607
00:26:15,320 --> 00:26:17,000
Speaker 2: I would hate that place and I couldn't get used

608
00:26:17,000 --> 00:26:18,760
Speaker 2: to it just because I live close to a lot

609
00:26:18,760 --> 00:26:20,680
Speaker 2: of friends and family right now, and so like, yeah,

610
00:26:20,680 --> 00:26:23,280
Speaker 2: you'd have to do a lot of convincing probably give

611
00:26:23,320 --> 00:26:23,679
Speaker 2: me to do that.

612
00:26:23,680 --> 00:26:25,640
Speaker 1: There'd also have to be the world's best brewery there.

613
00:26:26,400 --> 00:26:28,240
Speaker 1: That were to be the case, you probably would move. Yeah,

614
00:26:28,240 --> 00:26:28,639
Speaker 1: I really might.

615
00:26:28,680 --> 00:26:30,960
Speaker 2: Then, well, let's talk about like the married filing jointly

616
00:26:31,000 --> 00:26:33,000
Speaker 2: thing that Larry asked about as well, that he asked

617
00:26:33,000 --> 00:26:35,960
Speaker 2: whether or not they could file jointly, and I would say, yeah,

618
00:26:36,280 --> 00:26:38,720
Speaker 2: you totally can, Like is it going to be advantageous

619
00:26:38,720 --> 00:26:41,240
Speaker 2: for you from a tax standpoint, that's a question we

620
00:26:41,240 --> 00:26:43,200
Speaker 2: would recommend that you ask a tax pro because there's

621
00:26:43,280 --> 00:26:46,520
Speaker 2: just so many different things lurking that impact how you

622
00:26:46,560 --> 00:26:49,679
Speaker 2: file your taxes as a married couple and Matt and

623
00:26:49,680 --> 00:26:52,480
Speaker 2: I you know, we hire tax professionals ourselves. They're well

624
00:26:52,520 --> 00:26:55,920
Speaker 2: worth the money, like yep, well worth it. And you know,

625
00:26:55,960 --> 00:26:57,440
Speaker 2: if you make the wrong move here, we could be

626
00:26:57,480 --> 00:26:59,960
Speaker 2: talking about paying thousands of dollars in unnecessary time.

627
00:27:00,320 --> 00:27:03,879
Speaker 1: Tens of thousands of dollars. Yes, it's millions, probably.

628
00:27:03,640 --> 00:27:06,080
Speaker 2: Not maybeine million, probably not that much, but you know,

629
00:27:06,080 --> 00:27:08,000
Speaker 2: I'm Matt. We've talked recently about the tax benefits of

630
00:27:08,000 --> 00:27:10,720
Speaker 2: selling a home that's gone up in value significantly. Many

631
00:27:10,720 --> 00:27:13,440
Speaker 2: individuals and most couples will be able to avoid taxation

632
00:27:13,520 --> 00:27:15,920
Speaker 2: altogether on the gain of that property if they live

633
00:27:16,000 --> 00:27:17,960
Speaker 2: there at least two in the last five years. And

634
00:27:18,000 --> 00:27:20,879
Speaker 2: so even if you don't normally file jointly, Larry, you

635
00:27:21,000 --> 00:27:23,040
Speaker 2: might want to do so the year that you sell

636
00:27:23,160 --> 00:27:25,880
Speaker 2: your home, because if you don't that exclusion, the tax

637
00:27:25,880 --> 00:27:27,760
Speaker 2: exclusion is going to be cut in half, from five

638
00:27:27,800 --> 00:27:30,040
Speaker 2: hundred thousand dollars to two hundred and fifty thousand dollars

639
00:27:30,080 --> 00:27:32,119
Speaker 2: of gain, which is a big deal. So again I

640
00:27:32,119 --> 00:27:35,000
Speaker 2: would consult a tax professional, but that is the way

641
00:27:35,080 --> 00:27:38,320
Speaker 2: in a year in which you're selling a primary residence,

642
00:27:38,960 --> 00:27:40,399
Speaker 2: filing jointly is how you're going to be able to

643
00:27:40,400 --> 00:27:42,880
Speaker 2: shield typically the most money from taxation.

644
00:27:43,160 --> 00:27:45,399
Speaker 1: Yeah, yeah, how much you'll owe and tax depends on

645
00:27:45,440 --> 00:27:47,439
Speaker 1: what it is that you paid for that property, how

646
00:27:47,520 --> 00:27:50,040
Speaker 1: much it is that it has appreciated, how much money

647
00:27:50,040 --> 00:27:52,239
Speaker 1: you sunk into the property over the years, and then

648
00:27:52,280 --> 00:27:55,399
Speaker 1: of course that all important filing status. But if this

649
00:27:55,520 --> 00:27:58,959
Speaker 1: move is good for you from a lifestyle perspective, Larry,

650
00:27:59,240 --> 00:28:01,560
Speaker 1: as well as financial one, I would say, go ahead

651
00:28:01,560 --> 00:28:03,639
Speaker 1: and put that house on the market start looking for

652
00:28:03,680 --> 00:28:06,960
Speaker 1: homes in Arizona. Hopefully this is something you've already done.

653
00:28:07,040 --> 00:28:10,720
Speaker 1: But I'm assuming you mentioned Prescott, Arizona because you've been

654
00:28:10,720 --> 00:28:13,919
Speaker 1: there you like it. But if not, definitely go out

655
00:28:13,920 --> 00:28:16,840
Speaker 1: there and just hang out. I mean, just like Airbnb

656
00:28:17,000 --> 00:28:19,480
Speaker 1: for a month, yeah, or even like a weekend, Because

657
00:28:19,520 --> 00:28:20,920
Speaker 1: I feel like if you go out there for a month,

658
00:28:21,600 --> 00:28:23,480
Speaker 1: maybe I guess if you're working from home, right, like

659
00:28:23,520 --> 00:28:25,760
Speaker 1: if you are still working during the day, and then

660
00:28:25,840 --> 00:28:28,760
Speaker 1: truly you're living there like a local. But I would say,

661
00:28:28,840 --> 00:28:30,800
Speaker 1: like if you moved out there for just like a

662
00:28:30,880 --> 00:28:34,359
Speaker 1: even like a one week vacation, you might think, well, shoot,

663
00:28:34,440 --> 00:28:36,000
Speaker 1: what am I supposed to do here for a week?

664
00:28:36,280 --> 00:28:38,440
Speaker 1: For a week, Yeah, But you also might be saying

665
00:28:38,480 --> 00:28:40,320
Speaker 1: that same thing where you to take a week off

666
00:28:40,320 --> 00:28:42,479
Speaker 1: from work and then just hang out there at your

667
00:28:42,480 --> 00:28:44,920
Speaker 1: home in Huntington Beach, if you haven't developed some of

668
00:28:44,960 --> 00:28:46,960
Speaker 1: those some of those interests, some of those hobbies, some

669
00:28:46,960 --> 00:28:48,680
Speaker 1: of the things that you want to pursue once you

670
00:28:48,720 --> 00:28:52,440
Speaker 1: do enter into retirement. But yeah, go to Prescott, live

671
00:28:52,560 --> 00:28:55,280
Speaker 1: like a local. You can start even honing in, not

672
00:28:55,480 --> 00:28:57,440
Speaker 1: just on the city where you're kind of like, Okay,

673
00:28:57,480 --> 00:28:59,800
Speaker 1: according to the Census Bureau data, I should be able

674
00:28:59,800 --> 00:29:01,920
Speaker 1: to find a median home for around five hundred thousand dollars.

675
00:29:02,040 --> 00:29:04,400
Speaker 1: It depends so much on the specific neighborhoods and being

676
00:29:04,400 --> 00:29:06,920
Speaker 1: able to pinpoint where it is that you want to live.

677
00:29:06,960 --> 00:29:09,200
Speaker 1: I think that is a really important step as well,

678
00:29:09,320 --> 00:29:12,440
Speaker 1: something that you can do over the coming years as well. Yeah.

679
00:29:12,480 --> 00:29:15,120
Speaker 2: Yeah, and that's a good point Matt too. It's not

680
00:29:15,280 --> 00:29:18,640
Speaker 2: in the worst It's often in the best interest of

681
00:29:18,680 --> 00:29:20,680
Speaker 2: a lot of people who are moving to rent somewhere

682
00:29:20,760 --> 00:29:23,840
Speaker 2: for six months while you're kind of considering where you

683
00:29:23,840 --> 00:29:26,240
Speaker 2: want to live. Because yeah, if you end up buying

684
00:29:26,240 --> 00:29:28,080
Speaker 2: the house and you say, oh wait a second, I

685
00:29:28,080 --> 00:29:31,320
Speaker 2: actually really like Southwestern Prescott. I that's my favorite part

686
00:29:31,320 --> 00:29:33,160
Speaker 2: of the town, and you're like, but I'm in northeast

687
00:29:33,160 --> 00:29:35,760
Speaker 2: Prescott and it's too far to drive to the things

688
00:29:35,760 --> 00:29:38,360
Speaker 2: that I really care about. The less you know about

689
00:29:38,360 --> 00:29:40,480
Speaker 2: a town, the more it behooves you to rent for

690
00:29:40,480 --> 00:29:42,720
Speaker 2: a little bit. It's not throwing money away, it's helping

691
00:29:42,840 --> 00:29:44,720
Speaker 2: ensure that you don't throw more money away by making

692
00:29:44,720 --> 00:29:45,760
Speaker 2: the wrong real estate purchase.

693
00:29:45,800 --> 00:29:48,360
Speaker 1: That's right, man. Renting, whether long term or short term,

694
00:29:48,360 --> 00:29:50,840
Speaker 1: can help you to get to know a city before

695
00:29:50,840 --> 00:29:53,600
Speaker 1: you move there. But julis here from a listener now

696
00:29:53,640 --> 00:29:56,080
Speaker 1: who has opened a Fidelity account and it may not

697
00:29:56,280 --> 00:29:57,920
Speaker 1: be the best account for him.

698
00:29:58,280 --> 00:30:00,880
Speaker 5: Hey, man, Angel, this is Dave Mary out to Georgia.

699
00:30:01,560 --> 00:30:04,040
Speaker 5: I've been listening to your podcast for several years now,

700
00:30:04,200 --> 00:30:06,320
Speaker 5: but I admittedly am not able to get to every

701
00:30:06,360 --> 00:30:09,200
Speaker 5: podcast each week, so I apologize if you've already answered this.

702
00:30:10,160 --> 00:30:12,040
Speaker 5: My daughter was born a couple of months ago, and

703
00:30:12,080 --> 00:30:13,800
Speaker 5: I just opened a five to twenty nine account for

704
00:30:13,800 --> 00:30:16,320
Speaker 5: her with Fidelity. I don't know if she will end

705
00:30:16,400 --> 00:30:18,040
Speaker 5: up going to college, but I want to have at

706
00:30:18,120 --> 00:30:20,800
Speaker 5: least something save for her if she does decide to go,

707
00:30:21,360 --> 00:30:23,440
Speaker 5: and if not, I'm really happy that I can now

708
00:30:23,560 --> 00:30:26,360
Speaker 5: roll it into an Ira. I wanted to see if

709
00:30:26,360 --> 00:30:28,160
Speaker 5: you have any advice on what I should have the

710
00:30:28,160 --> 00:30:30,640
Speaker 5: funds invested in within the five to twenty nine account.

711
00:30:31,520 --> 00:30:33,760
Speaker 5: Knowing that she could use these funds in about eighteen

712
00:30:33,800 --> 00:30:36,160
Speaker 5: to twenty five years or potentially keep them for the

713
00:30:36,160 --> 00:30:38,560
Speaker 5: rest of her life makes me wonder if I should

714
00:30:38,600 --> 00:30:41,960
Speaker 5: add in investments for less volatility if she decides to

715
00:30:42,040 --> 00:30:44,600
Speaker 5: use them in the shorter term. Is this something where

716
00:30:44,600 --> 00:30:47,240
Speaker 5: I can invest it all in fc rocks and reevaluate

717
00:30:47,280 --> 00:30:49,280
Speaker 5: in sixteen years or so if I need to switch

718
00:30:49,320 --> 00:30:53,280
Speaker 5: to some more stable things like bonds. Just wanted to

719
00:30:53,320 --> 00:30:54,080
Speaker 5: get your take on it.

720
00:30:54,160 --> 00:30:55,720
Speaker 1: Thanks Dave.

721
00:30:55,880 --> 00:30:58,720
Speaker 2: First off, congrats on the Baby Girl, Fresh New Boy.

722
00:31:00,200 --> 00:31:02,960
Speaker 2: You're in the midst of He's in the throes of

723
00:31:03,080 --> 00:31:05,080
Speaker 2: sleepless nights, so I will say he was saying that

724
00:31:05,120 --> 00:31:07,280
Speaker 2: he didn't he hasn't been able to listen to all

725
00:31:07,320 --> 00:31:07,840
Speaker 2: the episodes.

726
00:31:07,880 --> 00:31:09,479
Speaker 1: What else you doing, man? You've got a new board now.

727
00:31:09,480 --> 00:31:11,600
Speaker 1: You should be at home listening to every single part.

728
00:31:11,600 --> 00:31:13,040
Speaker 1: You're not going out? That's what anymore?

729
00:31:13,080 --> 00:31:14,840
Speaker 2: We should We should be top of your Spotify rap

730
00:31:14,880 --> 00:31:16,760
Speaker 2: next year. Okay, So I take that back. So this

731
00:31:16,880 --> 00:31:19,280
Speaker 2: was unsolicited advice for Dave. But this kind of goes

732
00:31:19,280 --> 00:31:23,080
Speaker 2: back to Christie's maybe Christie's question, but hey, you should

733
00:31:23,120 --> 00:31:24,400
Speaker 2: be going out, Joe, I think back to.

734
00:31:24,680 --> 00:31:26,520
Speaker 1: The first six months are actually the only window where

735
00:31:26,520 --> 00:31:29,160
Speaker 1: you can well. And then on top of that, I

736
00:31:29,200 --> 00:31:30,640
Speaker 1: know you agree with us because this is something that

737
00:31:30,680 --> 00:31:33,200
Speaker 1: we did together, but it was our oldest girls were

738
00:31:33,200 --> 00:31:36,200
Speaker 1: maybe just a couple months old before we started going

739
00:31:36,240 --> 00:31:39,400
Speaker 1: out on date nights, and so once they're into a

740
00:31:39,440 --> 00:31:41,920
Speaker 1: predictable rhythm, you put them down and then you would

741
00:31:41,920 --> 00:31:43,479
Speaker 1: come over. You would hold down the fort and Kate

742
00:31:43,520 --> 00:31:45,360
Speaker 1: and I would go out. And it is so important

743
00:31:45,400 --> 00:31:47,000
Speaker 1: to make sure that you are carving out some time

744
00:31:47,520 --> 00:31:51,200
Speaker 1: for you and your partner that's not just completely preoccupied

745
00:31:51,240 --> 00:31:56,200
Speaker 1: with changes or feeding schedule. And yet how normalcy that.

746
00:31:56,240 --> 00:32:00,200
Speaker 1: Again we're talking about Christie's foundation, her financial foundation, but

747
00:32:00,240 --> 00:32:04,000
Speaker 1: this is like a familial foundation, like making sure that

748
00:32:04,040 --> 00:32:07,360
Speaker 1: your relationship with your partner is super solid. Yeah, but

749
00:32:07,400 --> 00:32:08,760
Speaker 1: you would do that and then the next week it's

750
00:32:08,800 --> 00:32:10,600
Speaker 1: your date night and I would go over there. You

751
00:32:10,720 --> 00:32:12,840
Speaker 1: put some of them still do that all these years,

752
00:32:12,880 --> 00:32:15,080
Speaker 1: like it's crazy. So for literally for ten years, this

753
00:32:15,120 --> 00:32:18,520
Speaker 1: is something that we have been able to maintain and dude,

754
00:32:18,520 --> 00:32:21,640
Speaker 1: I have one hundred percent credit that intentional time with

755
00:32:22,160 --> 00:32:25,760
Speaker 1: how strong I think kateon my relationship is. And I'm

756
00:32:25,760 --> 00:32:27,239
Speaker 1: sure you and Emily feel the same. It's a big

757
00:32:27,280 --> 00:32:29,480
Speaker 1: part of it for sure. Yeah, so that rhythm matters

758
00:32:29,480 --> 00:32:33,120
Speaker 1: a lot. Yeah, less five twenty nine advice, more unsolicited

759
00:32:34,600 --> 00:32:37,760
Speaker 1: baby slash couple's advice. Well, maybe we'll just change the

760
00:32:37,760 --> 00:32:39,080
Speaker 1: folks of this podcast. We'll see.

761
00:32:39,200 --> 00:32:41,000
Speaker 2: But let's get onto kind of Dave's question, the heart

762
00:32:41,000 --> 00:32:43,600
Speaker 2: of what he's asking about. And there's something that we

763
00:32:43,640 --> 00:32:46,560
Speaker 2: actually have to tackle, Dave before we offer our thoughts

764
00:32:46,640 --> 00:32:48,760
Speaker 2: on picking funds inside of that five twenty nine account.

765
00:32:48,800 --> 00:32:50,680
Speaker 2: We have some we have some advice on that front too.

766
00:32:50,960 --> 00:32:53,200
Speaker 2: But you mentioned that you opened up that five twenty

767
00:32:53,280 --> 00:32:57,040
Speaker 2: nine plan via Fidelity, and we are big fans of Fidelity,

768
00:32:57,120 --> 00:32:59,480
Speaker 2: especially when we're talking about four O one k's iras

769
00:32:59,680 --> 00:33:02,200
Speaker 2: hs anything with a A in it.

770
00:33:02,320 --> 00:33:05,120
Speaker 1: I guess right, But okay, guess what doesn't have.

771
00:33:06,600 --> 00:33:06,640
Speaker 3: That?

772
00:33:07,160 --> 00:33:09,160
Speaker 2: Okay, five twenty nine does not have an A and

773
00:33:09,200 --> 00:33:10,840
Speaker 2: a Dave, and so you got to think twice about this.

774
00:33:10,880 --> 00:33:12,120
Speaker 1: The five nine gets the boot.

775
00:33:12,160 --> 00:33:14,760
Speaker 2: That's right, you, Fidelity is actually unlikely to be your

776
00:33:14,760 --> 00:33:17,440
Speaker 2: best choice with this specific plan with a five twenty

777
00:33:17,480 --> 00:33:20,720
Speaker 2: nine account, because the state of Georgia already has a

778
00:33:20,800 --> 00:33:23,440
Speaker 2: killer direct soul plan and I know it can be confusing,

779
00:33:23,680 --> 00:33:26,320
Speaker 2: but five twenty nine plans are unique, and the best

780
00:33:26,320 --> 00:33:29,040
Speaker 2: way to fund one is through a state specific plan.

781
00:33:29,160 --> 00:33:32,840
Speaker 2: Almost all the time, you know, and often but not always,

782
00:33:32,840 --> 00:33:34,840
Speaker 2: that means going through the plan of the state you

783
00:33:34,960 --> 00:33:38,160
Speaker 2: live in, right, and that is specifically true for us.

784
00:33:38,240 --> 00:33:39,920
Speaker 2: In the state of Georgia, we have one of the

785
00:33:39,960 --> 00:33:43,240
Speaker 2: best lowest cost plans in the nation. And there's a

786
00:33:43,240 --> 00:33:45,240
Speaker 2: bunch of states that have great low cost plans and

787
00:33:45,280 --> 00:33:47,760
Speaker 2: as tax benefit to go along with it. But while

788
00:33:47,800 --> 00:33:50,880
Speaker 2: Fidelity does manage a few of the state plans, Georgia

789
00:33:50,960 --> 00:33:53,040
Speaker 2: isn't one of them. And so nope, Dave, this could

790
00:33:53,080 --> 00:33:55,480
Speaker 2: mean that you're missing out on a massive benefit going

791
00:33:55,480 --> 00:33:58,280
Speaker 2: this route, the state income tax deduction. So we would

792
00:33:58,320 --> 00:34:01,280
Speaker 2: say normally are vice to most people is not to

793
00:34:01,320 --> 00:34:03,960
Speaker 2: disch Fidelity, but in this case, disgch Fidelity and go

794
00:34:04,040 --> 00:34:07,560
Speaker 2: directly through Path to College, which is Georgia's specific five

795
00:34:07,640 --> 00:34:10,560
Speaker 2: twenty nine plan. You're going to get greater tax savings

796
00:34:10,640 --> 00:34:12,480
Speaker 2: and the costs are going to be ridiculously low.

797
00:34:12,600 --> 00:34:15,400
Speaker 1: Exactly. Yeah, So in our state, the state of Georgia.

798
00:34:15,480 --> 00:34:18,080
Speaker 1: So Dave, he said, he's in Marietta, and technically that's

799
00:34:18,120 --> 00:34:21,160
Speaker 1: where we live. We always say Atlanta because I still

800
00:34:21,160 --> 00:34:23,720
Speaker 1: claim Atlanta. We you know, spent the past two decades

801
00:34:23,760 --> 00:34:27,040
Speaker 1: basically down in city proper. But technically we're up in

802
00:34:27,040 --> 00:34:29,920
Speaker 1: Marietta now. So we are here in the state of Georgia,

803
00:34:30,239 --> 00:34:33,799
Speaker 1: like Dave is, and in our Dave is, and in

804
00:34:33,840 --> 00:34:36,440
Speaker 1: our state, you can mitigate that state income tax on

805
00:34:36,680 --> 00:34:40,040
Speaker 1: up to eight thousand dollars that you sack away into

806
00:34:40,160 --> 00:34:44,960
Speaker 1: a path to College college savings plan per beneficiary. And

807
00:34:45,000 --> 00:34:47,759
Speaker 1: that means if you've got multiple kids or Joel, even

808
00:34:47,840 --> 00:34:49,680
Speaker 1: in your case, if you've got a wife going back

809
00:34:49,719 --> 00:34:52,120
Speaker 1: to school, which I do and I'm taking advantage of this,

810
00:34:52,320 --> 00:34:54,920
Speaker 1: you can. So we're both we both have the ability

811
00:34:54,960 --> 00:34:58,520
Speaker 1: to offset our state income tax by thirty two thousand dollars.

812
00:34:59,080 --> 00:35:02,520
Speaker 1: You can massive reduce your state income tax by socking

813
00:35:02,600 --> 00:35:05,640
Speaker 1: more money into that account. Of course, you don't want

814
00:35:05,680 --> 00:35:07,440
Speaker 1: that to be the only reason that you contribute to

815
00:35:07,480 --> 00:35:09,200
Speaker 1: a five twenty nine account. You don't want the tail

816
00:35:09,239 --> 00:35:12,120
Speaker 1: to wag the dog. There are better investment accounts out there.

817
00:35:12,120 --> 00:35:14,759
Speaker 1: That are going to offer better tax avoidance and help

818
00:35:14,800 --> 00:35:17,040
Speaker 1: you to build wealth for your own future. That take

819
00:35:17,080 --> 00:35:21,280
Speaker 1: into account federal deductions as well. But this is worth mentioning,

820
00:35:21,680 --> 00:35:24,719
Speaker 1: so Dave, for you stop contributing to that fidelity plan,

821
00:35:24,960 --> 00:35:28,440
Speaker 1: go directly too, So literally the url is path the

822
00:35:28,520 --> 00:35:32,400
Speaker 1: number two college five two nine dot com. Go to

823
00:35:32,440 --> 00:35:36,480
Speaker 1: that instead, and it's a fairly well run website. The

824
00:35:36,800 --> 00:35:38,879
Speaker 1: plans that they offer there are great, the fees are

825
00:35:38,880 --> 00:35:41,919
Speaker 1: insanely low, and it really is one of the best

826
00:35:41,920 --> 00:35:44,120
Speaker 1: in the nation. Anybody who's listening to this, and you

827
00:35:44,160 --> 00:35:46,560
Speaker 1: live in the great state of Georgia, you are lucky

828
00:35:46,600 --> 00:35:47,439
Speaker 1: to have this as a mention.

829
00:35:47,640 --> 00:35:50,160
Speaker 2: Agreed, And all right, let's specifically get to the heart

830
00:35:50,160 --> 00:35:52,920
Speaker 2: of Dave's question, which was about which funds to invest

831
00:35:52,920 --> 00:35:55,680
Speaker 2: in inside of a five twenty nine plan, and FC

832
00:35:55,840 --> 00:35:57,719
Speaker 2: Rocks you mentioned that that's a great fund that we

833
00:35:57,760 --> 00:36:01,680
Speaker 2: talk about regularly because it's a ridiculously cheap than buy cheap,

834
00:36:01,719 --> 00:36:04,880
Speaker 2: I mean free, a total stock market index fund, and

835
00:36:04,960 --> 00:36:08,160
Speaker 2: so it's particularly great for really young investors in the

836
00:36:08,160 --> 00:36:10,880
Speaker 2: wealth building phase of their life. And your newmar kiddo

837
00:36:10,880 --> 00:36:13,280
Speaker 2: would kind of fit that bill right, who's got almost

838
00:36:13,320 --> 00:36:16,439
Speaker 2: two decades at least eighteen years. Yeah, for this money

839
00:36:16,480 --> 00:36:20,040
Speaker 2: to grow. The choices that you're going to have through

840
00:36:20,280 --> 00:36:23,400
Speaker 2: George's five twenty nine plan though their static portfolios and

841
00:36:23,400 --> 00:36:26,840
Speaker 2: their dynamic age based ones, so they're multiple different choices

842
00:36:26,840 --> 00:36:29,040
Speaker 2: that you can make. Static means you can choose a

843
00:36:29,080 --> 00:36:31,400
Speaker 2: specific fund like an all equity or an all fixed

844
00:36:31,400 --> 00:36:34,799
Speaker 2: income allotment, but the age based choices are the best

845
00:36:34,880 --> 00:36:36,799
Speaker 2: choice for most people to make. I would say they're

846
00:36:36,840 --> 00:36:39,800
Speaker 2: kind of akin to a target date fund, but on

847
00:36:39,840 --> 00:36:43,120
Speaker 2: a truncated timetable. What's the expense ratio on these funds?

848
00:36:43,120 --> 00:36:45,759
Speaker 2: It's point zero six two point one. It doesn't get

849
00:36:45,840 --> 00:36:48,799
Speaker 2: much better than that that the fees are negligible.

850
00:36:48,280 --> 00:36:50,000
Speaker 1: Essentially insanely low.

851
00:36:50,239 --> 00:36:52,080
Speaker 2: And so yeah, I think the target date fund MATT

852
00:36:52,120 --> 00:36:54,840
Speaker 2: just for most people make sense because over the years

853
00:36:55,239 --> 00:36:58,000
Speaker 2: that will gradually get slightly more conservative as that your

854
00:36:58,080 --> 00:37:00,560
Speaker 2: kiddo gets closer to college. So I really like that

855
00:37:00,600 --> 00:37:02,160
Speaker 2: as a choice for most people that kind of set

856
00:37:02,200 --> 00:37:03,120
Speaker 2: it and forget it totally.

857
00:37:03,160 --> 00:37:05,640
Speaker 1: Yeah, And we're specifically highlighting the Georgia Plan, but most

858
00:37:05,640 --> 00:37:09,000
Speaker 1: states have similar offerings, although not many with quite as

859
00:37:09,040 --> 00:37:11,759
Speaker 1: tiny of an expense ratio is here in Georgia, but

860
00:37:11,800 --> 00:37:13,960
Speaker 1: whether your state has an age base plan or not,

861
00:37:14,040 --> 00:37:17,120
Speaker 1: you could go with an all equity choice. So that

862
00:37:17,200 --> 00:37:20,480
Speaker 1: static option, which has performed a whole lot better this year,

863
00:37:21,160 --> 00:37:23,120
Speaker 1: Certainly it's not going to be true every single year.

864
00:37:23,440 --> 00:37:25,200
Speaker 1: But if you do opt to go in that more risk,

865
00:37:25,480 --> 00:37:28,880
Speaker 1: more reward direction, you'll likely want to remember to change

866
00:37:28,920 --> 00:37:31,479
Speaker 1: that as you get closer to your little girl needing

867
00:37:31,520 --> 00:37:34,360
Speaker 1: that money for school. I think you mentioned Dave like

868
00:37:34,440 --> 00:37:36,680
Speaker 1: maybe in sixteen years or so, I think that might

869
00:37:36,680 --> 00:37:38,560
Speaker 1: be a good period of time to take a look

870
00:37:38,600 --> 00:37:42,240
Speaker 1: at that, because again, if you look at it depends

871
00:37:42,280 --> 00:37:44,000
Speaker 1: on how comfortable you are with risk, because when you

872
00:37:44,080 --> 00:37:47,040
Speaker 1: look at the We've mentioned this frequently, but the rolling

873
00:37:47,520 --> 00:37:49,880
Speaker 1: periods of time and how often the stock market is

874
00:37:49,920 --> 00:37:52,400
Speaker 1: to go up. Personally, I don't think I'm going to

875
00:37:52,440 --> 00:37:56,800
Speaker 1: consider looking at that until my oldest kid turns fifteen,

876
00:37:57,120 --> 00:37:59,080
Speaker 1: because if you look at the rolling three year period,

877
00:37:59,160 --> 00:38:00,920
Speaker 1: it's about eighty five five percent of the time that

878
00:38:00,960 --> 00:38:03,600
Speaker 1: the stock market goes up, and so even money that

879
00:38:03,640 --> 00:38:07,000
Speaker 1: you were to be to invest for her at age fifteen,

880
00:38:07,800 --> 00:38:10,080
Speaker 1: you still have three more years of of there being

881
00:38:10,120 --> 00:38:13,160
Speaker 1: a high likelihood of that amount increasing, and even if

882
00:38:13,160 --> 00:38:15,080
Speaker 1: you pair that back even to a single year, it

883
00:38:15,120 --> 00:38:17,960
Speaker 1: only drops from eighty five percent to seventy five percent,

884
00:38:18,000 --> 00:38:20,000
Speaker 1: which is still very high. The odds are still highly

885
00:38:20,080 --> 00:38:22,480
Speaker 1: in your favor that were you to leave that in

886
00:38:22,520 --> 00:38:24,400
Speaker 1: the market, it would continue to grow. That's why we

887
00:38:24,400 --> 00:38:27,960
Speaker 1: say three out of every four year of money invested

888
00:38:28,000 --> 00:38:30,759
Speaker 1: in the market, historically speaking, does go up. The stock

889
00:38:30,760 --> 00:38:32,560
Speaker 1: market does go up, meaning that the money that you'll

890
00:38:32,600 --> 00:38:35,680
Speaker 1: have will be a higher amount. So I think you

891
00:38:35,680 --> 00:38:37,839
Speaker 1: can feel comfortable with either one of those choices. Yeah,

892
00:38:37,840 --> 00:38:38,200
Speaker 1: like you like.

893
00:38:38,280 --> 00:38:39,920
Speaker 2: Kind of what you're saying, though, is set a calendar

894
00:38:39,920 --> 00:38:43,600
Speaker 2: reminder for twelve to fifteen years from now to reassess, right,

895
00:38:43,640 --> 00:38:45,040
Speaker 2: and to say, wait a second, if I chose to

896
00:38:45,040 --> 00:38:46,840
Speaker 2: all equity fund, should I pair this back now to

897
00:38:46,880 --> 00:38:49,400
Speaker 2: the target date fund, just so that I'm not putting

898
00:38:49,400 --> 00:38:51,080
Speaker 2: all the chips on the table as I'm getting closer

899
00:38:51,120 --> 00:38:52,279
Speaker 2: and needing the money to spend on it.

900
00:38:52,360 --> 00:38:54,120
Speaker 1: I think college, And I think it depends too what

901
00:38:54,120 --> 00:38:56,000
Speaker 1: the market is doing at that point in time as well,

902
00:38:56,040 --> 00:38:58,760
Speaker 1: because let's say it's been fifteen years and the market

903
00:38:58,840 --> 00:39:00,719
Speaker 1: is at all time highs, and you know that she's

904
00:39:00,760 --> 00:39:02,759
Speaker 1: definitely going to go to college, I would be I

905
00:39:02,760 --> 00:39:04,080
Speaker 1: think I would be more prone to go ahead and

906
00:39:04,080 --> 00:39:05,759
Speaker 1: all right, let's go ahead and shift that money over

907
00:39:05,800 --> 00:39:09,279
Speaker 1: to quote unquote target date fund. But again, given the

908
00:39:09,400 --> 00:39:11,360
Speaker 1: historical returns of the market, if the market is in

909
00:39:11,440 --> 00:39:14,439
Speaker 1: a slump, I think I would say, well, let's go ahead,

910
00:39:14,520 --> 00:39:16,600
Speaker 1: leave it, let's leave it invested, because chances are of

911
00:39:16,640 --> 00:39:19,319
Speaker 1: it rebounding are pretty high over the course of the

912
00:39:19,320 --> 00:39:20,040
Speaker 1: next few years.

913
00:39:20,160 --> 00:39:22,400
Speaker 2: Yeah, it gives you some flexibility, but I think flexibility

914
00:39:22,400 --> 00:39:24,280
Speaker 2: absolutely you can go with either one of those directions.

915
00:39:24,320 --> 00:39:27,080
Speaker 1: And especially if she's not going to go to college, right,

916
00:39:27,239 --> 00:39:30,760
Speaker 1: because that's something you talked about reevaluating. The older she gets,

917
00:39:31,200 --> 00:39:33,120
Speaker 1: she's going to have opinions, so what it is her

918
00:39:33,160 --> 00:39:34,920
Speaker 1: life is going to look like. And so if she

919
00:39:35,440 --> 00:39:38,080
Speaker 1: is not going to use that money for higher education,

920
00:39:38,719 --> 00:39:42,319
Speaker 1: leaving it completely invested in equities because guess what, she's

921
00:39:42,320 --> 00:39:44,240
Speaker 1: not going to need to tap this until she's retiring,

922
00:39:44,280 --> 00:39:46,319
Speaker 1: because this is going to roll into a wrath. That

923
00:39:46,360 --> 00:39:49,520
Speaker 1: would definitely be an instance of leaving that money invested

924
00:39:49,560 --> 00:39:50,680
Speaker 1: one hundred percent in equities.

925
00:39:50,760 --> 00:39:53,759
Speaker 2: Yeah, yep, no, that's true, and that having that as

926
00:39:53,760 --> 00:39:56,439
Speaker 2: a backstop, being able to roll those dollars over into

927
00:39:56,520 --> 00:39:59,200
Speaker 2: roth Ira. Money for the beneficiary is one of the

928
00:39:59,239 --> 00:40:02,560
Speaker 2: coolest new features that five point nines offer, So big

929
00:40:02,560 --> 00:40:05,640
Speaker 2: thanks to the Congress for fixing fixing that issue. But

930
00:40:05,920 --> 00:40:08,800
Speaker 2: we've got a little more to get to on this episode,

931
00:40:09,239 --> 00:40:12,600
Speaker 2: and specifically, what about not helping a baby invest? What

932
00:40:12,640 --> 00:40:15,520
Speaker 2: about helping a teenager who's getting their first job to invest.

933
00:40:15,560 --> 00:40:17,200
Speaker 2: We'll talk about that right after this.

934
00:40:25,760 --> 00:40:28,280
Speaker 1: Yes, it is almost like a kid themed episode. We're

935
00:40:28,320 --> 00:40:30,520
Speaker 1: talking to somebody who doesn't yet have a kid. We've

936
00:40:30,520 --> 00:40:34,280
Speaker 1: talked to somebody who has a very very young kiddo,

937
00:40:34,400 --> 00:40:37,480
Speaker 1: but we now have our Facebook question of the week.

938
00:40:37,880 --> 00:40:39,520
Speaker 1: He's got a kid that's a bit older. So this

939
00:40:39,600 --> 00:40:42,160
Speaker 1: one's from Eric and he said, question for parents of

940
00:40:42,200 --> 00:40:45,200
Speaker 1: working teens, what have you found is the best way

941
00:40:45,239 --> 00:40:48,120
Speaker 1: to get them to invest in their retirement roth Ira,

942
00:40:48,840 --> 00:40:50,840
Speaker 1: Even if it's only five or ten dollars a week.

943
00:40:50,960 --> 00:40:53,480
Speaker 1: I want them to view investing as standard practice and

944
00:40:53,520 --> 00:40:57,000
Speaker 1: get used to having a standard percentage taken out every week.

945
00:40:57,239 --> 00:40:59,640
Speaker 1: Our son is now sixteen, and he starts his first

946
00:40:59,719 --> 00:41:02,560
Speaker 1: job this weekend at a grocery store. I'm doubtful they

947
00:41:02,600 --> 00:41:04,200
Speaker 1: will have a four to one k or that he

948
00:41:04,239 --> 00:41:07,919
Speaker 1: will be eligible. Yes, unlikely that he's going to get

949
00:41:08,200 --> 00:41:10,520
Speaker 1: a match out of end krogerwind Dick's years.

950
00:41:10,520 --> 00:41:12,399
Speaker 2: And let's be honest, some of those some of those

951
00:41:12,400 --> 00:41:14,000
Speaker 2: companies do offer it, but not to their part time

952
00:41:14,040 --> 00:41:15,279
Speaker 2: employees right now.

953
00:41:15,320 --> 00:41:17,520
Speaker 1: If you're backing groceries right pulling in carts.

954
00:41:17,520 --> 00:41:21,080
Speaker 2: There there are some notable exceptions though, some companies that

955
00:41:21,440 --> 00:41:24,960
Speaker 2: like Starbucks, that offers some pretty significant benefits to folks

956
00:41:25,000 --> 00:41:27,080
Speaker 2: who are working uber part time right in the twenty

957
00:41:27,120 --> 00:41:30,160
Speaker 2: hour work week range. But with your kid being in

958
00:41:30,200 --> 00:41:32,120
Speaker 2: high school, he might not even be working that much,

959
00:41:32,200 --> 00:41:34,360
Speaker 2: right But yeah, congrats to you and your son on

960
00:41:34,400 --> 00:41:36,480
Speaker 2: this job. I think high school jobs are the best, Matt.

961
00:41:36,520 --> 00:41:38,759
Speaker 2: We've talked about this before. Like mine, sure taught me

962
00:41:38,800 --> 00:41:41,360
Speaker 2: a lot. There's a different way of relating to a

963
00:41:41,400 --> 00:41:44,279
Speaker 2: manager than relating to a teacher. And even just being

964
00:41:44,280 --> 00:41:47,759
Speaker 2: a few minutes late or being slightly lazy right when

965
00:41:47,760 --> 00:41:49,600
Speaker 2: I should have been working, Like I learned, I learned

966
00:41:49,600 --> 00:41:51,680
Speaker 2: a heck of a lot about work ethic in the

967
00:41:51,960 --> 00:41:53,799
Speaker 2: and I started working when I was fourteen at the

968
00:41:53,880 --> 00:41:55,760
Speaker 2: fast food joined across the street from my high school,

969
00:41:55,960 --> 00:41:58,279
Speaker 2: and it just it was a really good experience I

970
00:41:58,280 --> 00:42:01,520
Speaker 2: wouldn't say like I love it at the time, but

971
00:42:01,840 --> 00:42:04,799
Speaker 2: it molded me in some really important ways. And I

972
00:42:04,800 --> 00:42:07,839
Speaker 2: think it's great that Eric is down for micro investing too,

973
00:42:08,160 --> 00:42:10,560
Speaker 2: five or ten bucks. Yeah, even just that a week,

974
00:42:10,880 --> 00:42:12,840
Speaker 2: like he said, can and will make a difference for

975
00:42:12,880 --> 00:42:14,839
Speaker 2: your son. And it's more than just the money, right,

976
00:42:14,840 --> 00:42:17,200
Speaker 2: it's the habit of starting to invest at such a

977
00:42:17,200 --> 00:42:19,759
Speaker 2: young age that's so powerful. Oh yeah, it's the fact

978
00:42:19,800 --> 00:42:21,719
Speaker 2: that he starts to see himself as an investor. He's

979
00:42:21,760 --> 00:42:24,399
Speaker 2: doing the thing. It's kind of like kinetic energy. It's

980
00:42:24,440 --> 00:42:26,359
Speaker 2: like the object in motion tends to stay in motion.

981
00:42:26,600 --> 00:42:28,719
Speaker 2: I think the same thing is true for investors. It's

982
00:42:28,760 --> 00:42:32,040
Speaker 2: like the earlier you start, it's unlikely you're just going

983
00:42:32,080 --> 00:42:34,400
Speaker 2: to be like, eh, not doing that anymore. Even if

984
00:42:34,440 --> 00:42:36,239
Speaker 2: you continue it at just a meager pace, you're going

985
00:42:36,280 --> 00:42:37,480
Speaker 2: to continue. Absolutely.

986
00:42:37,560 --> 00:42:40,319
Speaker 1: Yeah. I just think back to what I was taught

987
00:42:40,320 --> 00:42:43,479
Speaker 1: about money. Basically, my parents taught me to give away

988
00:42:43,520 --> 00:42:45,680
Speaker 1: ten percent of the money I earned from doing my chores,

989
00:42:45,920 --> 00:42:48,840
Speaker 1: like starting from the I mean as early as I

990
00:42:48,840 --> 00:42:52,120
Speaker 1: can remember counting dimes, I was giving like I would

991
00:42:52,160 --> 00:42:53,919
Speaker 1: receive a dollar, and I was giving one of those

992
00:42:53,960 --> 00:42:56,840
Speaker 1: dimes one of those ten away and that's stuck with me.

993
00:42:57,520 --> 00:43:00,120
Speaker 1: And because of that, it's something I've literally never ever

994
00:43:00,160 --> 00:43:03,000
Speaker 1: struggled with. It's become something that's important to me. Whether

995
00:43:03,320 --> 00:43:05,640
Speaker 1: I was, whether that was a ritual sneed jerk. Yes,

996
00:43:05,760 --> 00:43:08,080
Speaker 1: it's a little more intentional now, but at the same time,

997
00:43:08,160 --> 00:43:10,680
Speaker 1: it's so ingrained as to how it is I handled

998
00:43:10,680 --> 00:43:13,719
Speaker 1: my money, like whether it was working in college or

999
00:43:13,960 --> 00:43:16,160
Speaker 1: as a young adult. When Kate and I first got married,

1000
00:43:16,200 --> 00:43:18,719
Speaker 1: it was like never a question that was on the table.

1001
00:43:18,760 --> 00:43:21,040
Speaker 1: It was just sort of like a default, and it's like, well,

1002
00:43:21,080 --> 00:43:22,160
Speaker 1: if we're not going to do this, we need to

1003
00:43:22,200 --> 00:43:24,520
Speaker 1: talk about it. But the assumption is that we're going

1004
00:43:24,600 --> 00:43:26,879
Speaker 1: to continue to give away a portion of our money.

1005
00:43:26,880 --> 00:43:29,719
Speaker 1: And so again, especially at a young age, kids can

1006
00:43:29,719 --> 00:43:31,640
Speaker 1: be so impressionable and you can have such a big impact,

1007
00:43:31,719 --> 00:43:34,879
Speaker 1: even though in the moment you might think, Okay, what

1008
00:43:34,920 --> 00:43:37,400
Speaker 1: big difference does this? Does this actually make? It feels small?

1009
00:43:37,520 --> 00:43:39,160
Speaker 1: It feels small, but it goes, man, it goes a

1010
00:43:39,160 --> 00:43:40,040
Speaker 1: really long way. Yeah.

1011
00:43:40,080 --> 00:43:43,000
Speaker 2: I would say that the behavioral impact is even more

1012
00:43:43,040 --> 00:43:44,640
Speaker 2: important than the monetary event.

1013
00:43:44,719 --> 00:43:48,880
Speaker 1: Yeah, like not even close. Exactly, Like his first year

1014
00:43:48,920 --> 00:43:51,240
Speaker 1: of working a real job, like once he's in college

1015
00:43:51,320 --> 00:43:53,560
Speaker 1: or post college, he's going to be able to more

1016
00:43:53,600 --> 00:43:57,120
Speaker 1: than dwarf the money that he's been able to basically

1017
00:43:57,120 --> 00:44:01,840
Speaker 1: accumulate most likely his entire working teenage career, essentially, unless

1018
00:44:01,840 --> 00:44:04,080
Speaker 1: he goes out and starts his own lawnmowing business. I

1019
00:44:04,080 --> 00:44:06,239
Speaker 1: have a friend in high school and he's crushing it.

1020
00:44:06,320 --> 00:44:08,560
Speaker 1: Like he ended up. He was buying like trailers, bringing

1021
00:44:08,560 --> 00:44:10,440
Speaker 1: on other guys to cut lawns for him as well.

1022
00:44:10,520 --> 00:44:12,560
Speaker 1: I was like dude, and he ended up running that

1023
00:44:12,640 --> 00:44:16,719
Speaker 1: business like well into his twenties. School it's amazing, But

1024
00:44:17,200 --> 00:44:21,040
Speaker 1: Eric was asking about specific accounts. The roth iray like

1025
00:44:21,440 --> 00:44:22,960
Speaker 1: that really is the smart way to go here for

1026
00:44:23,000 --> 00:44:24,920
Speaker 1: your son, And a reason for that is because his

1027
00:44:24,960 --> 00:44:28,280
Speaker 1: income is likely going to be incredibly low as a teenager.

1028
00:44:28,760 --> 00:44:31,919
Speaker 1: Every dollar that you shove into a wroth when your

1029
00:44:32,080 --> 00:44:34,919
Speaker 1: earnings are meager, it just gets amplified in a massive way,

1030
00:44:34,960 --> 00:44:37,480
Speaker 1: and a roth is definitely a great way to do that,

1031
00:44:38,000 --> 00:44:40,400
Speaker 1: just the added flexibility. I'm not going to harp on

1032
00:44:40,440 --> 00:44:42,600
Speaker 1: about how great the roth iras are, but you have.

1033
00:44:42,640 --> 00:44:45,080
Speaker 2: Also got that well in the higher your earnings, the

1034
00:44:45,120 --> 00:44:47,960
Speaker 2: more difficult it is to choose roth over traditional because

1035
00:44:48,000 --> 00:44:49,480
Speaker 2: you're like, I should make shure I take the tax

1036
00:44:49,520 --> 00:44:52,200
Speaker 2: break now, But what the lower your income is, which

1037
00:44:52,280 --> 00:44:55,120
Speaker 2: as a high school working at a grocery store is

1038
00:44:55,160 --> 00:44:56,799
Speaker 2: not going to be anything to write home about and

1039
00:44:56,920 --> 00:45:00,600
Speaker 2: talk about. The ridiculously high standard deduction. I mean, that

1040
00:45:00,800 --> 00:45:04,080
Speaker 2: is another thing. It's just going to ensure that basically

1041
00:45:04,080 --> 00:45:06,239
Speaker 2: any money that he soalks away in a ROTH is

1042
00:45:06,760 --> 00:45:09,600
Speaker 2: largely shielded from tax and also will never be taxed again.

1043
00:45:09,880 --> 00:45:12,160
Speaker 2: So ROTH for the win here for sure. So we

1044
00:45:12,160 --> 00:45:14,360
Speaker 2: would suggest helping him open one up, be a Fidelity

1045
00:45:14,480 --> 00:45:17,440
Speaker 2: or Vanguard betterments a great way to go to. You

1046
00:45:17,520 --> 00:45:20,160
Speaker 2: might want to incentivize him even by offering a match

1047
00:45:20,239 --> 00:45:22,759
Speaker 2: of your own. So this is just this is just

1048
00:45:22,800 --> 00:45:26,400
Speaker 2: another way to kind of enhance the behavioral benefit of

1049
00:45:26,480 --> 00:45:28,920
Speaker 2: helping him to invest. So let's say, for instance, he's

1050
00:45:28,920 --> 00:45:31,680
Speaker 2: willing to contribute two thousand dollars of the five thousand

1051
00:45:31,719 --> 00:45:34,200
Speaker 2: dollars that he's earned. Maybe you can add a fifty

1052
00:45:34,239 --> 00:45:36,520
Speaker 2: percent or even one hundred percent match if you have

1053
00:45:36,520 --> 00:45:38,960
Speaker 2: the spare cash and you're so inclined to kind of

1054
00:45:39,360 --> 00:45:41,680
Speaker 2: help him go down this path even more quickly. It's

1055
00:45:41,760 --> 00:45:44,080
Speaker 2: just such a great thing to be able to do

1056
00:45:44,239 --> 00:45:47,120
Speaker 2: for him for his future, and it can help drive

1057
00:45:47,200 --> 00:45:50,799
Speaker 2: home powerfully just how important investing can be in an

1058
00:45:50,800 --> 00:45:53,680
Speaker 2: early age when you're saying, listen, like, yeah, you're going

1059
00:45:53,760 --> 00:45:56,480
Speaker 2: to see an average of like, you know, nine percent

1060
00:45:56,520 --> 00:45:58,120
Speaker 2: to returns in the market over the year or something

1061
00:45:58,160 --> 00:46:00,839
Speaker 2: like that. But guess what this year and next year

1062
00:46:00,880 --> 00:46:02,759
Speaker 2: you're going to see a hundred percent return because the

1063
00:46:03,120 --> 00:46:04,759
Speaker 2: daddy match is kicking in and that's going to be

1064
00:46:04,760 --> 00:46:07,400
Speaker 2: way more powerful, especially in those early years of investing,

1065
00:46:07,440 --> 00:46:11,440
Speaker 2: because honestly, seeing nine percent on two thousand dollars, that

1066
00:46:11,480 --> 00:46:14,399
Speaker 2: ain't much, right, And so you know, like you said,

1067
00:46:14,440 --> 00:46:16,839
Speaker 2: even matching up to one hundred percent, right, So him

1068
00:46:16,840 --> 00:46:18,680
Speaker 2: being able to turn this two thousand dollars into four

1069
00:46:18,680 --> 00:46:22,439
Speaker 2: thousand dollars, that's great. What you can't do is match

1070
00:46:22,480 --> 00:46:26,920
Speaker 2: it two hundred percent where he's ultimately contributing six thousand dollars, right,

1071
00:46:26,960 --> 00:46:30,080
Speaker 2: So his two plus four thousand dollars that if you're

1072
00:46:30,120 --> 00:46:32,919
Speaker 2: matching two hundred percent, right, And that's because he didn't

1073
00:46:32,920 --> 00:46:35,480
Speaker 2: earn six thousand dollars. He earned five thousand dollars in

1074
00:46:35,520 --> 00:46:37,880
Speaker 2: this example. And so that's one particular that you need

1075
00:46:37,920 --> 00:46:40,080
Speaker 2: to pay attention to, is that you can't even though

1076
00:46:40,080 --> 00:46:42,840
Speaker 2: the IRS allows. Well you might be saying the iris,

1077
00:46:43,120 --> 00:46:46,080
Speaker 2: I thought the contribu contribution limits were sixty five hundred dollars.

1078
00:46:46,280 --> 00:46:48,200
Speaker 1: Well, yeah, but he didn't earn sixty five hundred dollars.

1079
00:46:48,239 --> 00:46:52,200
Speaker 1: You have to technically actually earn the amount that you're

1080
00:46:52,400 --> 00:46:55,279
Speaker 1: socking away within a roth iray. Yeah like that. So

1081
00:46:55,280 --> 00:46:56,799
Speaker 1: that's something to keep in mind as well. You can't

1082
00:46:56,840 --> 00:46:58,640
Speaker 1: exceed the amount that he actually earns.

1083
00:46:58,680 --> 00:47:00,960
Speaker 2: So these couple levers couple levers are going to be

1084
00:47:01,040 --> 00:47:03,439
Speaker 2: huge and helping your son get started on the right foot,

1085
00:47:03,480 --> 00:47:03,759
Speaker 2: and the.

1086
00:47:03,680 --> 00:47:05,920
Speaker 1: Fact that you're thinking about it like that boost. Yeah,

1087
00:47:06,000 --> 00:47:08,680
Speaker 1: it's like it helps him when that is back. And

1088
00:47:09,160 --> 00:47:11,600
Speaker 1: I don't know, we're like six five six years away

1089
00:47:11,640 --> 00:47:15,560
Speaker 1: from our oldest daughter driving on her own, which sounds

1090
00:47:15,600 --> 00:47:17,320
Speaker 1: kind of far away, but it's really not that far away.

1091
00:47:17,360 --> 00:47:20,879
Speaker 1: And we've already started to have some discussions where I've said, hey,

1092
00:47:21,320 --> 00:47:24,080
Speaker 1: you know, if mom and Mom or I aren't driving,

1093
00:47:24,360 --> 00:47:26,239
Speaker 1: if there's a car available, of course you'll be able

1094
00:47:26,239 --> 00:47:28,560
Speaker 1: to We'll let you borrow that car. But if you're

1095
00:47:28,560 --> 00:47:31,560
Speaker 1: wanting something that's your own or something that's different, you

1096
00:47:31,560 --> 00:47:34,400
Speaker 1: need to start saving now. But also whatever money you're

1097
00:47:34,400 --> 00:47:37,360
Speaker 1: willing to put towards buying the car, we will be

1098
00:47:37,400 --> 00:47:39,879
Speaker 1: willing to match one hundred percent. So let's say you've

1099
00:47:39,920 --> 00:47:43,080
Speaker 1: got seven thousand dollars that you are able to save

1100
00:47:43,160 --> 00:47:46,640
Speaker 1: up in the next five years from babysitting and whatever

1101
00:47:46,719 --> 00:47:49,200
Speaker 1: other job you might pick up. All right, dang it,

1102
00:47:49,200 --> 00:47:50,840
Speaker 1: we got to make sure to set aside in another

1103
00:47:50,840 --> 00:47:53,000
Speaker 1: seven thousand dollars. That way, she's able to buy fourteen

1104
00:47:53,000 --> 00:47:55,400
Speaker 1: thousand dollars vehicle if that's something she's wanting to do.

1105
00:47:55,640 --> 00:47:58,800
Speaker 1: But yeah, some of those just different ways to incentivize behavior.

1106
00:47:59,520 --> 00:48:01,840
Speaker 1: All about it, man, Yeah, yeah.

1107
00:48:01,719 --> 00:48:04,960
Speaker 2: Those incentives matter, right, They help define what choices we make,

1108
00:48:05,360 --> 00:48:08,400
Speaker 2: and if the incentive is big enough, I'll change my

1109
00:48:08,440 --> 00:48:10,200
Speaker 2: behavior pretty quick for sure.

1110
00:48:10,040 --> 00:48:12,279
Speaker 1: On big Yeah, because that's I mean, I think that's

1111
00:48:12,320 --> 00:48:14,399
Speaker 1: what's so great about the one hundred percent matches, because

1112
00:48:14,440 --> 00:48:16,759
Speaker 1: employers will will match dollar for dollar like that is

1113
00:48:16,800 --> 00:48:19,800
Speaker 1: a realistic incentive that you'll see out in the market.

1114
00:48:20,080 --> 00:48:21,680
Speaker 1: But you also don't want to do it too much.

1115
00:48:21,680 --> 00:48:24,480
Speaker 1: You don't want to make it so unrealistic that it

1116
00:48:24,480 --> 00:48:27,280
Speaker 1: almost spoils them to real investing in the real world.

1117
00:48:27,480 --> 00:48:29,080
Speaker 1: It makes me think about trying to teach the kids

1118
00:48:29,080 --> 00:48:32,640
Speaker 1: about compounding interest. And I was paying one percent on

1119
00:48:32,719 --> 00:48:35,600
Speaker 1: money that they left quote unquote invested in their account.

1120
00:48:35,960 --> 00:48:39,040
Speaker 1: But I was paying that weekly, and that one percent

1121
00:48:39,080 --> 00:48:42,120
Speaker 1: every single week. It builds up pretty dann quickly. And

1122
00:48:42,200 --> 00:48:45,040
Speaker 1: so I also wonder, on one hand, if when they

1123
00:48:45,040 --> 00:48:47,200
Speaker 1: do start investing, I just kind of ruined it for them,

1124
00:48:47,200 --> 00:48:49,240
Speaker 1: because they're like, never if they're always going to expect

1125
00:48:49,239 --> 00:48:52,480
Speaker 1: twenty twenty bitcoin like returns it when it comes to

1126
00:48:52,520 --> 00:48:55,080
Speaker 1: their regular investments. I'm afraid that I've even sent in

1127
00:48:55,080 --> 00:48:56,480
Speaker 1: the bar too high when it comes to investment. I

1128
00:48:56,520 --> 00:48:56,960
Speaker 1: don't think so.

1129
00:48:57,719 --> 00:49:00,239
Speaker 2: I think it's the concept that matters more than kind

1130
00:49:00,239 --> 00:49:01,759
Speaker 2: of exactly how it plays out.

1131
00:49:01,800 --> 00:49:03,360
Speaker 1: But I guess I think about when I was a

1132
00:49:03,440 --> 00:49:07,360
Speaker 1: kid and seeing the measly returns from opening a savings account,

1133
00:49:07,440 --> 00:49:09,440
Speaker 1: and this is back in the late eighties early nineties,

1134
00:49:09,600 --> 00:49:10,920
Speaker 1: like why do people do this? And I'm just like,

1135
00:49:11,239 --> 00:49:14,520
Speaker 1: this is the most disappointing thing ever. I'm earning like pennies.

1136
00:49:14,880 --> 00:49:17,920
Speaker 1: But granted that was a savings account. I wasn't actually investing,

1137
00:49:18,040 --> 00:49:20,600
Speaker 1: but even still, I just remember that as a kid,

1138
00:49:20,800 --> 00:49:23,239
Speaker 1: and I was under incentivized at that point, and I'm

1139
00:49:23,280 --> 00:49:25,960
Speaker 1: afraid that maybe I swung too far with my kids

1140
00:49:25,960 --> 00:49:28,680
Speaker 1: and over incentivized. But I think finding the happy medium

1141
00:49:28,719 --> 00:49:30,200
Speaker 1: for you, Eric is the most important.

1142
00:49:30,239 --> 00:49:31,960
Speaker 2: Think it's hard to overdo it. I really do, I

1143
00:49:32,000 --> 00:49:34,840
Speaker 2: really do. I mean, yeah, So I think this is

1144
00:49:34,880 --> 00:49:35,960
Speaker 2: a this is a good way to do it. I

1145
00:49:36,000 --> 00:49:37,719
Speaker 2: think it's a tried and true method. And I think

1146
00:49:37,800 --> 00:49:40,399
Speaker 2: you're already on the right path. You're asking the right questions. Yeah,

1147
00:49:40,440 --> 00:49:42,520
Speaker 2: and you're going to help shepherd him in the right direction,

1148
00:49:42,920 --> 00:49:45,520
Speaker 2: no matter like how how much of a match you're

1149
00:49:45,560 --> 00:49:48,239
Speaker 2: giving I think. But Matt, that's uh. Let's let's head

1150
00:49:48,239 --> 00:49:50,799
Speaker 2: back to the beer on this one. This was and

1151
00:49:50,840 --> 00:49:53,800
Speaker 2: I'll pronounce it right this time, Austin La Vista Mexican

1152
00:49:53,880 --> 00:49:56,719
Speaker 2: lager Costell Lesta Ostell Lavista.

1153
00:49:56,400 --> 00:49:58,839
Speaker 1: And it's by Frog Rock Brewery. What were your thoughts

1154
00:49:58,880 --> 00:49:59,279
Speaker 1: on this beer?

1155
00:49:59,320 --> 00:49:59,440
Speaker 3: Man?

1156
00:49:59,560 --> 00:50:02,479
Speaker 1: Yeah? Okay, So on the can there it says that

1157
00:50:02,560 --> 00:50:06,759
Speaker 1: this is made from Lithonius spring Is it Lithonia or

1158
00:50:06,840 --> 00:50:10,839
Speaker 1: Lithia Lithia Lithia springs spring water? Yeah? How much do

1159
00:50:10,920 --> 00:50:13,319
Speaker 1: you think that that spring water impacts the flavor of

1160
00:50:13,320 --> 00:50:15,600
Speaker 1: this beer, because probably a lot it tastes Water's the

1161
00:50:15,640 --> 00:50:18,440
Speaker 1: number one ingredient beer. It makes sense. Yeah, it's and

1162
00:50:18,560 --> 00:50:20,480
Speaker 1: it says on there like it's got a certain amount

1163
00:50:20,560 --> 00:50:24,439
Speaker 1: of uh like sulfate or sulfites or whatever. I feel

1164
00:50:24,440 --> 00:50:26,960
Speaker 1: like I can taste that. I don't, and maybe I'm

1165
00:50:26,960 --> 00:50:29,840
Speaker 1: just imagining it in my head, But do you feel

1166
00:50:29,840 --> 00:50:32,560
Speaker 1: like that. There's like almost like a like the tiniest

1167
00:50:32,600 --> 00:50:36,120
Speaker 1: minerally sulfur like quality too. There's like a mineral sweetness

1168
00:50:36,120 --> 00:50:36,920
Speaker 1: to this one for sure.

1169
00:50:36,960 --> 00:50:37,160
Speaker 4: Yeah.

1170
00:50:37,280 --> 00:50:39,919
Speaker 1: Yeah, so, I mean I I like it. At first.

1171
00:50:39,960 --> 00:50:41,400
Speaker 1: It kind of caught me off guard, but the more

1172
00:50:41,440 --> 00:50:43,719
Speaker 1: I kept sipping it during this episode, I thought, I

1173
00:50:43,800 --> 00:50:46,120
Speaker 1: kind of dig this and maybe it's like straight from

1174
00:50:46,160 --> 00:50:48,239
Speaker 1: the earth. I don't know. It feels like pure. Something

1175
00:50:48,239 --> 00:50:49,799
Speaker 1: about it makes me feel like a mountain nature I guess,

1176
00:50:49,880 --> 00:50:54,680
Speaker 1: drinking from a spring that happens to produce beer. It's amazing, incredible.

1177
00:50:55,000 --> 00:50:56,839
Speaker 1: If you find it, let me know. Yeah.

1178
00:50:56,880 --> 00:50:58,160
Speaker 2: No, I really like this one too. And I didn't

1179
00:50:58,160 --> 00:51:00,879
Speaker 2: realize Mexican loggers they're actually and I looked this up.

1180
00:51:01,239 --> 00:51:04,840
Speaker 2: It's the recording this. They're Vienna laggers made with adjuncts,

1181
00:51:04,840 --> 00:51:08,080
Speaker 2: typically with corn, and so this is this is sweeter,

1182
00:51:08,160 --> 00:51:10,600
Speaker 2: I would say than most Mexican loggers I've had, but

1183
00:51:10,880 --> 00:51:13,480
Speaker 2: it's it's laid back, it's a good it's a.

1184
00:51:13,400 --> 00:51:15,560
Speaker 1: Good brew, and I've never even heard of these guys.

1185
00:51:15,640 --> 00:51:17,440
Speaker 2: I feel like, you know what, Mexican loggers are supposed

1186
00:51:17,440 --> 00:51:19,279
Speaker 2: to have a line though, right, we didn't have a line.

1187
00:51:19,480 --> 00:51:21,439
Speaker 1: So next time we have this one that might add

1188
00:51:21,440 --> 00:51:23,600
Speaker 1: a sharp sharp partners to it. Yeah, I think that

1189
00:51:23,600 --> 00:51:25,239
Speaker 1: would be that would perfect it for sure. Maybe we'll

1190
00:51:25,280 --> 00:51:27,680
Speaker 1: swing by the check these guys out. I've literally never

1191
00:51:27,840 --> 00:51:30,279
Speaker 1: even heard of these, but definitely thankful for Joe for

1192
00:51:30,840 --> 00:51:32,920
Speaker 1: donating this one, plus another one that we're gonna have

1193
00:51:32,960 --> 00:51:34,000
Speaker 1: at some point as well.

1194
00:51:34,600 --> 00:51:36,320
Speaker 2: All Right, buddy, that's gonna do it for this episode.

1195
00:51:36,600 --> 00:51:39,759
Speaker 2: Until next time, Best Friends Altum, best Friends Out

1196
00:51:54,440 --> 00:51:54,799
Speaker 1: M HM