1 00:00:00,160 --> 00:00:03,400 Speaker 1: Welcome to How to Money. I'm Joel and I am Matt, 2 00:00:03,400 --> 00:00:06,560 Speaker 1: and today we're talking about free cell service for real, 3 00:00:06,600 --> 00:00:09,640 Speaker 1: free phantom debt, and politicized investing. 4 00:00:28,840 --> 00:00:32,720 Speaker 2: Yeah, not just politicized investing, partisan investing, which is like 5 00:00:32,760 --> 00:00:34,680 Speaker 2: the worst kind of politics. 6 00:00:35,159 --> 00:00:38,279 Speaker 1: But the Libertarians they're like two percent. They don't really 7 00:00:38,320 --> 00:00:39,360 Speaker 1: have any options. It's true. 8 00:00:39,440 --> 00:00:41,720 Speaker 2: This is our Friday flight where we're going to cover 9 00:00:41,800 --> 00:00:44,040 Speaker 2: the best stories that we came across this week and 10 00:00:44,080 --> 00:00:47,360 Speaker 2: how they pertain to your personal finances. Okay, Joel, I've 11 00:00:47,360 --> 00:00:49,120 Speaker 2: got a question for you. I've got a frugal or 12 00:00:49,240 --> 00:00:52,760 Speaker 2: cheap So this time of year it's spring, obviously, and 13 00:00:53,159 --> 00:00:57,080 Speaker 2: around where we live, mulberry trees are. I was going 14 00:00:57,120 --> 00:00:58,880 Speaker 2: to say they're in full bloom. They're not in full boom. 15 00:00:59,160 --> 00:01:02,560 Speaker 2: The berries all are at like peak ripeness right now, 16 00:01:02,560 --> 00:01:06,480 Speaker 2: which means that a lot of sidewalks, a lot of paths, 17 00:01:06,560 --> 00:01:08,480 Speaker 2: or like the little road path thing that I take 18 00:01:08,520 --> 00:01:10,520 Speaker 2: to work, it's littered. 19 00:01:10,280 --> 00:01:12,080 Speaker 1: With these berries. You're stepping all over them. 20 00:01:12,080 --> 00:01:14,120 Speaker 2: It's kind of a mess. Honestly, I wear white tennis. 21 00:01:13,959 --> 00:01:14,680 Speaker 1: Shoes these days. 22 00:01:15,400 --> 00:01:17,280 Speaker 2: It gets on the shoe and messes it up. A 23 00:01:17,280 --> 00:01:20,080 Speaker 2: little purple But my question, my frugal or cheap for you, 24 00:01:20,280 --> 00:01:23,600 Speaker 2: is what are your thoughts of eating berries that don't 25 00:01:23,600 --> 00:01:26,760 Speaker 2: belong to you specifically, like this is public property, or 26 00:01:26,760 --> 00:01:28,680 Speaker 2: even if it's not public, I guess like it's it's 27 00:01:28,800 --> 00:01:31,000 Speaker 2: very clear that these are berries that aren't that aren't 28 00:01:31,040 --> 00:01:32,160 Speaker 2: being taken advantage of. 29 00:01:32,280 --> 00:01:33,960 Speaker 1: Dude just coming into my backyard. I've got plenty. 30 00:01:34,080 --> 00:01:35,600 Speaker 2: Yeah, you've got one over there too, back there with 31 00:01:35,640 --> 00:01:36,320 Speaker 2: the chickens. 32 00:01:36,080 --> 00:01:39,479 Speaker 1: Right yeah, they're eating them where my kids are eating them. 33 00:01:39,480 --> 00:01:43,279 Speaker 2: I got some healthy, antioxidant chickens right now. They're feeling 34 00:01:43,319 --> 00:01:45,200 Speaker 2: real good, exactly. I was feeling really good. So I 35 00:01:45,200 --> 00:01:48,160 Speaker 2: did this yesterday morning walking to work. It had just rained, 36 00:01:48,880 --> 00:01:51,640 Speaker 2: so there's like this nice natural bath, like the rain 37 00:01:51,680 --> 00:01:53,520 Speaker 2: water was kind of dripping off the berries a little bit, 38 00:01:53,560 --> 00:01:55,840 Speaker 2: and so I stopped actually rinsed. Yeah, I stopped, and 39 00:01:55,880 --> 00:01:59,160 Speaker 2: I started chowing down, and I figured this is totally fine. 40 00:01:59,160 --> 00:02:01,280 Speaker 2: But somebody drove past and honked at me, and I 41 00:02:01,280 --> 00:02:03,160 Speaker 2: thought it maybe it was a friend, but I didn't 42 00:02:03,360 --> 00:02:06,200 Speaker 2: recognize the car. So I'm like, no, it's surely somebody 43 00:02:06,240 --> 00:02:09,839 Speaker 2: didn't at me for gettinger for picking berries off the tree. 44 00:02:09,880 --> 00:02:12,000 Speaker 2: Like it's kind of weird to do that, I guess, 45 00:02:12,080 --> 00:02:13,120 Speaker 2: but I want to know your thoughts. 46 00:02:13,120 --> 00:02:14,919 Speaker 1: Frugal or cheap. I think it's I think it's proble. 47 00:02:14,960 --> 00:02:16,480 Speaker 1: I think it's fine good. I mean, most of those 48 00:02:16,520 --> 00:02:18,760 Speaker 1: mulberries are going to waste. The birds are getting some, 49 00:02:18,840 --> 00:02:20,280 Speaker 1: but a lot of them. Like you said, you're all 50 00:02:20,320 --> 00:02:24,160 Speaker 1: over the sidewalks. The sidewalk, so eat some, maybe pick 51 00:02:24,200 --> 00:02:25,919 Speaker 1: a bunch and make a pie or something like that. 52 00:02:26,040 --> 00:02:29,320 Speaker 2: Well, I guess theoretically the problem that poses is the 53 00:02:29,320 --> 00:02:31,680 Speaker 2: tragedy of the commons, right, Like, you've got this common 54 00:02:32,000 --> 00:02:36,079 Speaker 2: shared resource enough, more more people descend upon it than 55 00:02:36,160 --> 00:02:38,240 Speaker 2: it's capable of supporting. You got a problem on your hand. 56 00:02:38,240 --> 00:02:41,119 Speaker 1: You're the only person I know but nobody does that. 57 00:02:41,200 --> 00:02:42,880 Speaker 1: We've been picking them in our backyard a little bit, 58 00:02:42,919 --> 00:02:45,040 Speaker 1: but we still have more than we need. So I 59 00:02:45,080 --> 00:02:46,720 Speaker 1: think if that becomes a problem, we can rethink it. 60 00:02:46,760 --> 00:02:48,320 Speaker 1: But I think for the time being, I'm glad you're 61 00:02:48,360 --> 00:02:49,720 Speaker 1: for it. Feel freey crambl what you need. 62 00:02:49,840 --> 00:02:52,360 Speaker 2: There's a do you know outside of the library that 63 00:02:52,360 --> 00:02:53,960 Speaker 2: we go to as well. We're huge fans of the 64 00:02:54,000 --> 00:02:57,359 Speaker 2: local library. Ever had service berries? So you've got mulberries 65 00:02:57,360 --> 00:03:00,440 Speaker 2: in your backyard. You've got a big sweet tree serveerries. 66 00:03:00,440 --> 00:03:02,800 Speaker 2: It's kind of like a bush tree looking thing, and 67 00:03:03,080 --> 00:03:05,680 Speaker 2: they're these little round berries as well. They're also at 68 00:03:05,720 --> 00:03:08,440 Speaker 2: peak berry season. I don't know what you go it, 69 00:03:08,480 --> 00:03:09,760 Speaker 2: but if you go to the library, you look for 70 00:03:09,800 --> 00:03:11,360 Speaker 2: him on the side there, right near the entrance, and 71 00:03:11,400 --> 00:03:13,120 Speaker 2: you can like literally last we were there a few 72 00:03:13,160 --> 00:03:15,160 Speaker 2: days ago, and uh, I mean me and the kids. 73 00:03:15,200 --> 00:03:17,359 Speaker 2: We chow chowed down for like two or three minutes 74 00:03:18,080 --> 00:03:19,320 Speaker 2: just eating them, and. 75 00:03:19,320 --> 00:03:20,360 Speaker 1: Only can you get free books. 76 00:03:20,360 --> 00:03:22,440 Speaker 2: You a certain point, I said, let's let's move on. 77 00:03:22,520 --> 00:03:25,160 Speaker 2: Let's in case somebody else wants to stop and snack 78 00:03:25,240 --> 00:03:26,840 Speaker 2: on them as well. But I don't know, I'm off 79 00:03:26,880 --> 00:03:27,160 Speaker 2: for it. 80 00:03:27,280 --> 00:03:29,320 Speaker 1: The one case in which it would be I think 81 00:03:29,400 --> 00:03:31,920 Speaker 1: cheap instead of rugal is if you don't know what 82 00:03:32,000 --> 00:03:33,919 Speaker 1: kind of berries are good and which ones aren't. Oh yeah, 83 00:03:33,960 --> 00:03:35,560 Speaker 1: you don't want to be like Peta in the Hunger 84 00:03:35,640 --> 00:03:37,760 Speaker 1: Games eating the night lock when you're not supposed to that. 85 00:03:38,600 --> 00:03:40,280 Speaker 1: Yeah yeah, you don't want to do bodily damage to 86 00:03:40,280 --> 00:03:42,200 Speaker 1: yourself by eating the wrong berries, the ones that you 87 00:03:42,240 --> 00:03:43,200 Speaker 1: know might upset your tongue. 88 00:03:43,280 --> 00:03:46,640 Speaker 2: You're such a fan of Susanne Collins. 89 00:03:47,240 --> 00:03:50,280 Speaker 1: Yes, you know, the movies were solid. I haven't seen 90 00:03:50,320 --> 00:03:52,640 Speaker 1: the new one though. I think was it a prequel? 91 00:03:52,760 --> 00:03:55,080 Speaker 1: Oh yeah, it was like the backstory. Yeah, I haven't 92 00:03:55,080 --> 00:03:58,760 Speaker 1: seen it. President Snow Yeah yeah, yeah, Well maybe somebody 93 00:03:58,800 --> 00:03:59,560 Speaker 1: else check that out. 94 00:03:59,560 --> 00:04:03,480 Speaker 2: There's a bun, all right. Declared it frugal, not cheap. 95 00:04:03,480 --> 00:04:06,040 Speaker 1: And whenever I say ghosts, Matt as everyone knows. All right. 96 00:04:06,080 --> 00:04:07,720 Speaker 1: Let's move on. Let's get to the stories we found 97 00:04:07,760 --> 00:04:10,680 Speaker 1: interesting this week. We call it the Friday Flight Matt. 98 00:04:10,720 --> 00:04:13,480 Speaker 1: Let's start off by talking about that free cell service story. 99 00:04:14,320 --> 00:04:16,240 Speaker 1: The cost on cell phone service has been dropping like 100 00:04:16,240 --> 00:04:18,240 Speaker 1: a rock over the years. If you look at a 101 00:04:18,480 --> 00:04:22,080 Speaker 1: one of those charts of inflation, it's like healthcare and 102 00:04:22,920 --> 00:04:24,520 Speaker 1: higher education costs skyrocketing. 103 00:04:24,600 --> 00:04:26,680 Speaker 2: Yeah, we talked about that this past week, yep, with 104 00:04:27,000 --> 00:04:27,840 Speaker 2: Ryan Craig. 105 00:04:28,080 --> 00:04:30,400 Speaker 1: That's right. But while those costs have gone up in 106 00:04:30,440 --> 00:04:32,320 Speaker 1: a big way, there are other costs that have gone down. 107 00:04:32,360 --> 00:04:34,520 Speaker 1: Talk about big screen TVs. I want to say those 108 00:04:34,560 --> 00:04:37,479 Speaker 1: have dropped like ninety seven percent in the price. Yeah, 109 00:04:37,480 --> 00:04:40,159 Speaker 1: it's ridiculous. But something else has gone down in price 110 00:04:40,200 --> 00:04:42,200 Speaker 1: has been cell phone service. Think about what you used 111 00:04:42,200 --> 00:04:45,600 Speaker 1: to pay ten twelve years ago. We've been highlighting this 112 00:04:45,680 --> 00:04:48,720 Speaker 1: movement regularly because the savings can be tremendous, right if 113 00:04:48,720 --> 00:04:51,920 Speaker 1: you opt for one of our low cost favorite providers. 114 00:04:52,000 --> 00:04:54,240 Speaker 1: I've actually got an article on the best m v 115 00:04:54,320 --> 00:04:56,720 Speaker 1: and o's mobile virtual network operators up on our site. 116 00:04:56,760 --> 00:04:59,320 Speaker 1: We'll post that in the show notes for this episode. 117 00:04:59,680 --> 00:05:02,400 Speaker 2: But what if you're already low. 118 00:05:02,320 --> 00:05:04,920 Speaker 1: Fifteen to twenty five dollars a month bill went away 119 00:05:04,960 --> 00:05:07,800 Speaker 1: completely went all the way to zero? Whoah, that'd be nice, right, 120 00:05:07,839 --> 00:05:09,880 Speaker 1: But is it possible or is that like pie in 121 00:05:09,920 --> 00:05:12,160 Speaker 1: the sky. Well, I'm not going to say that it's 122 00:05:12,200 --> 00:05:15,320 Speaker 1: a perfect solution, but really it might be possible if 123 00:05:15,320 --> 00:05:18,119 Speaker 1: you're willing to jump through a few hoops. Text Now 124 00:05:18,560 --> 00:05:21,599 Speaker 1: is a free, ad supported phone service that used to 125 00:05:21,600 --> 00:05:24,719 Speaker 1: only offer free text and call. So basically, sorry, no data, 126 00:05:25,040 --> 00:05:27,520 Speaker 1: but if all you care about is texting and calling, 127 00:05:27,560 --> 00:05:30,320 Speaker 1: you don't use data anyway. Hey, it was a good solution, 128 00:05:30,680 --> 00:05:32,920 Speaker 1: but now they've announced they're including a little bit of 129 00:05:33,320 --> 00:05:37,520 Speaker 1: data as well to run the most important apps like maps, email, 130 00:05:37,560 --> 00:05:40,120 Speaker 1: and ride share. Basically, you can only use apps that 131 00:05:40,160 --> 00:05:41,679 Speaker 1: use very little data, so they're not going to allow 132 00:05:41,680 --> 00:05:44,280 Speaker 1: you to watch YouTube on the go or stream your 133 00:05:44,279 --> 00:05:45,040 Speaker 1: favorite podcast. 134 00:05:45,080 --> 00:05:47,400 Speaker 2: You can sit down with text now and play Fortnite 135 00:05:47,520 --> 00:05:48,760 Speaker 2: right likely none. 136 00:05:48,600 --> 00:05:51,039 Speaker 1: Of that stuff like candy Grass. Sorry not till you 137 00:05:51,040 --> 00:05:54,480 Speaker 1: get home, but heck, I mean, you can download a 138 00:05:54,480 --> 00:05:55,919 Speaker 1: lot of things ahead of time right when you do 139 00:05:56,000 --> 00:05:58,440 Speaker 1: have that Wi Fi connection. Text Now runs on t 140 00:05:58,640 --> 00:06:01,400 Speaker 1: mobiles backbones, so it's not like it's on some you know, 141 00:06:01,520 --> 00:06:02,880 Speaker 1: janky Provider or anything like. 142 00:06:02,839 --> 00:06:04,800 Speaker 2: That, same as Mint Mobile. That's right, I mean, and 143 00:06:04,839 --> 00:06:06,720 Speaker 2: it works great for us. So Joe, you could give 144 00:06:06,720 --> 00:06:07,200 Speaker 2: this a shot. 145 00:06:07,520 --> 00:06:10,320 Speaker 1: I really might. The reviews are mixed on Reddit, so 146 00:06:10,320 --> 00:06:11,880 Speaker 1: I will say, like I want you to try it out. 147 00:06:11,920 --> 00:06:14,919 Speaker 1: You have to go through a specific text now app. 148 00:06:14,920 --> 00:06:18,080 Speaker 1: You can't use your traditional calling and texting apps most 149 00:06:18,080 --> 00:06:20,599 Speaker 1: of the time, so don't shoot the messenger if you 150 00:06:20,600 --> 00:06:22,040 Speaker 1: try it and you're like, this sucks you guys gave 151 00:06:22,080 --> 00:06:25,119 Speaker 1: a terrible recommendation. But I do think for some ultra 152 00:06:25,120 --> 00:06:27,600 Speaker 1: frugal folks, Matt, this might at least be worth a shot. 153 00:06:27,600 --> 00:06:29,880 Speaker 1: If you're like, no, I'm totally down to saving extra 154 00:06:29,920 --> 00:06:31,880 Speaker 1: two hundred bucks a year, I don't mind making my 155 00:06:31,960 --> 00:06:35,120 Speaker 1: life a little more difficult for that kind of savings. 156 00:06:35,200 --> 00:06:36,320 Speaker 1: Text now is totally worth looking. 157 00:06:36,320 --> 00:06:37,680 Speaker 2: It makes sense that they have to do it within 158 00:06:37,720 --> 00:06:39,560 Speaker 2: the app right, like you need something to be able 159 00:06:39,600 --> 00:06:41,760 Speaker 2: to you need a medium to be able to deliver 160 00:06:41,880 --> 00:06:44,640 Speaker 2: the ads on per Right. Personally, though, I'm like I can't, 161 00:06:44,720 --> 00:06:46,240 Speaker 2: I can't get behind it. And you know, I spent 162 00:06:46,320 --> 00:06:47,760 Speaker 2: some time thinking about this and I was like, what 163 00:06:47,800 --> 00:06:51,120 Speaker 2: about that do I dislike? Because I'm not against advertising. 164 00:06:51,400 --> 00:06:53,920 Speaker 2: I literally was an advertising major. I thought I was 165 00:06:53,920 --> 00:06:56,960 Speaker 2: gonna be an ad man, like I worked for an advertising agency. 166 00:06:57,440 --> 00:06:58,560 Speaker 2: I worked as a designer. 167 00:06:58,920 --> 00:07:00,799 Speaker 1: You're like, Don Draper fifth two years later. 168 00:07:00,680 --> 00:07:02,960 Speaker 2: Well, it was funny is that that whole series came 169 00:07:03,000 --> 00:07:05,320 Speaker 2: out like after I quit advertising, and it kind of 170 00:07:05,360 --> 00:07:07,799 Speaker 2: made me want to like get back into it because 171 00:07:07,800 --> 00:07:11,400 Speaker 2: they certainly glamorized that that type of life and not 172 00:07:11,480 --> 00:07:13,440 Speaker 2: something not a path I wasna I was gonna go down. 173 00:07:13,520 --> 00:07:16,680 Speaker 2: But it got me thinking again about advertising. And what 174 00:07:16,720 --> 00:07:19,880 Speaker 2: I realized was that something like cell phone service feels 175 00:07:19,920 --> 00:07:22,880 Speaker 2: more like a utility to me, So it would be 176 00:07:22,920 --> 00:07:25,640 Speaker 2: the equivalent in my mind almost of like your electricity 177 00:07:25,680 --> 00:07:28,400 Speaker 2: company or your water company being like, oh yeah, you can, 178 00:07:28,520 --> 00:07:30,080 Speaker 2: you can pay a reduced fee when it comes to 179 00:07:30,120 --> 00:07:33,080 Speaker 2: how much you pay for your utility. But we're gonna 180 00:07:33,080 --> 00:07:34,600 Speaker 2: spam you with that. I don't know how they would 181 00:07:34,600 --> 00:07:36,760 Speaker 2: do that, like as they're delivering the electricity or the 182 00:07:36,800 --> 00:07:39,400 Speaker 2: water or something like that. But you compare that to 183 00:07:39,480 --> 00:07:42,320 Speaker 2: something that feels more consumption based, like a TV show 184 00:07:42,680 --> 00:07:44,400 Speaker 2: or a magazine, right like the glass you know that 185 00:07:44,520 --> 00:07:47,040 Speaker 2: all that, Like magazines are chock full of ads. Nobody 186 00:07:47,040 --> 00:07:51,120 Speaker 2: bats and eyelash at that sports even like on the sidelines, 187 00:07:51,200 --> 00:07:54,480 Speaker 2: or even like the naming rights to different stadiums. You 188 00:07:54,560 --> 00:07:58,480 Speaker 2: are trading off the entertainment with the ability to all right, 189 00:07:58,520 --> 00:08:01,560 Speaker 2: I'm consumer for free exactly as opposed to something like 190 00:08:01,600 --> 00:08:03,640 Speaker 2: cell phone service, which to me and more and more, 191 00:08:03,680 --> 00:08:04,960 Speaker 2: I think for a lot of folks it does feel 192 00:08:05,000 --> 00:08:06,960 Speaker 2: a little bit more like utility. Like that's the part 193 00:08:07,000 --> 00:08:09,880 Speaker 2: of it that I have a hard time getting behind. 194 00:08:09,920 --> 00:08:12,000 Speaker 2: I think it's going to make its treaty the prices. 195 00:08:12,240 --> 00:08:13,880 Speaker 1: The price is already pretty low. So if we're talking 196 00:08:13,880 --> 00:08:15,800 Speaker 1: about going from like eighty bucks a month to zero 197 00:08:15,880 --> 00:08:17,400 Speaker 1: dollars a month, I might be willing to jump through 198 00:08:17,400 --> 00:08:19,920 Speaker 1: the hoops because that's a that's a substantial savings. But 199 00:08:20,120 --> 00:08:22,440 Speaker 1: when I'm talking about one hundred and fifty to one 200 00:08:22,480 --> 00:08:23,960 Speaker 1: hundred and eighty bucks a year. I guess based on 201 00:08:23,960 --> 00:08:26,800 Speaker 1: what I currently pay. Yeah, I'm probably not going to jump. 202 00:08:26,680 --> 00:08:27,960 Speaker 2: Through those I'm not going to hate on somebody if 203 00:08:28,000 --> 00:08:29,920 Speaker 2: they want to do that. If they're looking to like 204 00:08:30,000 --> 00:08:33,040 Speaker 2: one hundred percent fully optimized from a financial standpoint, hey man, 205 00:08:33,120 --> 00:08:33,720 Speaker 2: more power to you. 206 00:08:33,720 --> 00:08:35,520 Speaker 1: I think one of the things that this might actually 207 00:08:35,520 --> 00:08:38,560 Speaker 1: work for is for parents who have a kid, And 208 00:08:38,640 --> 00:08:42,400 Speaker 1: part of the appeal isn't necessarily just it being free, 209 00:08:42,679 --> 00:08:44,959 Speaker 1: but it's them not having access to data on the go. 210 00:08:45,200 --> 00:08:47,120 Speaker 1: And so you might say, listen, I was hoping that 211 00:08:47,160 --> 00:08:49,600 Speaker 1: my thirteen year old would would be able to get 212 00:08:49,600 --> 00:08:51,719 Speaker 1: their first cell phone. Gosh, I don't necessarily want to 213 00:08:51,720 --> 00:08:53,840 Speaker 1: pay two hundred bucks a year for them to have access, 214 00:08:53,840 --> 00:08:55,880 Speaker 1: But I also don't want them to have unlimited access 215 00:08:55,880 --> 00:08:58,640 Speaker 1: to data either, So maybe this is the perfect solution. 216 00:08:58,679 --> 00:09:00,520 Speaker 1: They can text you, they can call you, and you're 217 00:09:00,559 --> 00:09:02,480 Speaker 1: not going to pay a dollar for it either. Or 218 00:09:02,480 --> 00:09:03,920 Speaker 1: I guess you pay one dollar for the SIM card. 219 00:09:03,920 --> 00:09:04,440 Speaker 1: That's okay. 220 00:09:05,040 --> 00:09:07,000 Speaker 2: So it's almost if you want to run a little 221 00:09:07,400 --> 00:09:08,800 Speaker 2: test experiment on your kids, go for it. 222 00:09:08,960 --> 00:09:11,920 Speaker 1: Turn your kids into guinea pigs. I'm in favor of it, 223 00:09:12,000 --> 00:09:14,160 Speaker 1: all right, let's talk about debt for a second, Matt. 224 00:09:14,679 --> 00:09:16,600 Speaker 1: You know, we're back to doing what we do best 225 00:09:16,600 --> 00:09:20,320 Speaker 1: here as Americans spending money. We don't have that debt. 226 00:09:20,360 --> 00:09:23,680 Speaker 1: And unfortunately, I know, debt and delinquencies are on the 227 00:09:23,760 --> 00:09:26,800 Speaker 1: rise in the good old US of a. The overall 228 00:09:26,960 --> 00:09:29,920 Speaker 1: debt load, it's not going up at like an incredibly 229 00:09:29,960 --> 00:09:33,120 Speaker 1: rapid clip or anything like that, but new stats reveal 230 00:09:33,160 --> 00:09:36,360 Speaker 1: that more folks are missing bill payments, with more than 231 00:09:36,400 --> 00:09:39,320 Speaker 1: three percent of bills being overdue this past quarter. So 232 00:09:39,360 --> 00:09:42,480 Speaker 1: people are behind on their payments Matt, that they would 233 00:09:42,480 --> 00:09:45,520 Speaker 1: normally be making on time. And it's not some cause 234 00:09:45,600 --> 00:09:50,079 Speaker 1: for macroeconomic alarm or anything like that. But credit card delinquencies, 235 00:09:50,080 --> 00:09:52,760 Speaker 1: for instance, they haven't been this high since like twenty twelve, 236 00:09:52,800 --> 00:09:54,800 Speaker 1: so it's been more than a decade since we've seen 237 00:09:54,840 --> 00:09:57,199 Speaker 1: them rising at the pace they are and getting to 238 00:09:57,280 --> 00:09:59,719 Speaker 1: the levels that they're currently at. It sure seems like 239 00:09:59,760 --> 00:10:02,760 Speaker 1: we're having a tough time coming down from basically a 240 00:10:02,920 --> 00:10:05,960 Speaker 1: post stimmy spendings pretty high, Like people got a lot 241 00:10:06,000 --> 00:10:08,040 Speaker 1: of money thrust to their bankinghouse, they start spending, they 242 00:10:08,080 --> 00:10:09,920 Speaker 1: spend that money down and they're like, I want to 243 00:10:09,960 --> 00:10:12,480 Speaker 1: keep spending like that, and because of that, they're going 244 00:10:12,520 --> 00:10:15,240 Speaker 1: into debt trying to keep that pace up. And student 245 00:10:15,280 --> 00:10:17,520 Speaker 1: loan servicers, by the way, they're not even reporting late 246 00:10:17,559 --> 00:10:19,760 Speaker 1: payments right now until the fall, so it's not even 247 00:10:19,760 --> 00:10:23,320 Speaker 1: like that's factoring in. If people haven't been paying, they're 248 00:10:23,360 --> 00:10:26,040 Speaker 1: not current on their student loans. Well, guess what, that's 249 00:10:26,080 --> 00:10:27,640 Speaker 1: not impacting you in this way. 250 00:10:27,800 --> 00:10:29,680 Speaker 2: Yeah, it seems like things are going to get. 251 00:10:29,600 --> 00:10:33,600 Speaker 1: Worse later this year. It's a warning sign on the horizon, 252 00:10:33,640 --> 00:10:36,200 Speaker 1: I think, showing that we are seeing increasing signs of 253 00:10:36,240 --> 00:10:38,920 Speaker 1: financial distress and we just don't want our listeners to 254 00:10:38,960 --> 00:10:42,440 Speaker 1: be a statistic in kind of that rising tide of 255 00:10:42,520 --> 00:10:45,920 Speaker 1: people who find themselves behind on their payments. Totally. 256 00:10:46,000 --> 00:10:49,280 Speaker 2: Yeah, and this is particularly a problem for gen Z. 257 00:10:49,800 --> 00:10:52,360 Speaker 2: This is according to new data from trains Union. But 258 00:10:52,480 --> 00:10:55,400 Speaker 2: not only are more young folks graduating with higher levels 259 00:10:55,400 --> 00:10:58,280 Speaker 2: of student loan debt, they're also relying on credit card 260 00:10:58,280 --> 00:11:01,880 Speaker 2: debt more as well. And even after adjusting for inflation, 261 00:11:02,040 --> 00:11:04,320 Speaker 2: the average twenty two to twenty four year old today 262 00:11:04,720 --> 00:11:07,360 Speaker 2: has six hundred dollars more in credit card debt than 263 00:11:07,400 --> 00:11:10,760 Speaker 2: that same age group did a decade ago. And it's 264 00:11:10,760 --> 00:11:14,000 Speaker 2: certainly true that rising costs for everything from groceries to 265 00:11:14,080 --> 00:11:17,280 Speaker 2: rent to gas. They have had large impacts. Inflation is 266 00:11:17,320 --> 00:11:20,160 Speaker 2: still well over three percent, but it's also true that 267 00:11:20,240 --> 00:11:23,040 Speaker 2: it is easier to spend than ever before. And in 268 00:11:23,080 --> 00:11:25,240 Speaker 2: this case, the problem isn't just inflation. 269 00:11:25,559 --> 00:11:26,120 Speaker 1: It's us. 270 00:11:26,240 --> 00:11:28,640 Speaker 2: It's the folks who are making the decision to purchase 271 00:11:28,640 --> 00:11:31,520 Speaker 2: all the stuff, and those simultaneous trends are making it 272 00:11:31,559 --> 00:11:33,800 Speaker 2: harder for gen Z specifically to get ahead financially. 273 00:11:33,920 --> 00:11:36,080 Speaker 1: It's not like inflation's not still a headwind. It is, 274 00:11:36,400 --> 00:11:40,880 Speaker 1: but it's also true that we are our own headwind, Like, yes, doubling. 275 00:11:41,040 --> 00:11:43,120 Speaker 2: Our own worst enemy. Like both of these things are 276 00:11:43,120 --> 00:11:45,040 Speaker 2: working against us, but only one of them do we 277 00:11:45,080 --> 00:11:46,880 Speaker 2: personally have the ability to control. 278 00:11:46,960 --> 00:11:49,400 Speaker 1: Yeah, only one of them is self imposed. Yeah, and 279 00:11:49,440 --> 00:11:51,240 Speaker 1: so yeah, it's really important to pay attention to that. 280 00:11:51,280 --> 00:11:53,960 Speaker 1: And again, yeah, you can blame circumstances, and it's not 281 00:11:54,000 --> 00:11:56,440 Speaker 1: that there isn't some truth to that, but we're also 282 00:11:56,559 --> 00:11:59,600 Speaker 1: responsible for those actions of getting into debt at a 283 00:11:59,720 --> 00:12:02,559 Speaker 1: higher rate, especially when we're talking about where interest rates 284 00:12:02,640 --> 00:12:06,080 Speaker 1: stand right now, Matt, We're harming our own financial future 285 00:12:06,120 --> 00:12:07,960 Speaker 1: and future US is going to have to pay down 286 00:12:07,960 --> 00:12:10,440 Speaker 1: these debts and when we're talking about credit cards, we're 287 00:12:10,440 --> 00:12:13,199 Speaker 1: talking about high interest rates too, and that's not even including, 288 00:12:13,240 --> 00:12:16,280 Speaker 1: by the way, what's known as phantom debts from buy now, 289 00:12:16,280 --> 00:12:19,120 Speaker 1: Pay Later companies, specifically that doesn't get reported to the 290 00:12:19,120 --> 00:12:22,000 Speaker 1: credit bureaus and it's hard to account for. There were 291 00:12:22,000 --> 00:12:24,320 Speaker 1: new statistics on that front this week too, and they 292 00:12:24,360 --> 00:12:27,480 Speaker 1: found that twenty eight percent of folks find themselves delinquent 293 00:12:27,559 --> 00:12:30,199 Speaker 1: on other debts because they overdid it on buy now, 294 00:12:30,200 --> 00:12:33,800 Speaker 1: Pay Later purchases. So basically, they got a little trigger 295 00:12:33,840 --> 00:12:36,960 Speaker 1: happy on the website, on their favorite retailer site, and 296 00:12:37,040 --> 00:12:40,079 Speaker 1: they opted to buy stuff, buy more than they could 297 00:12:40,120 --> 00:12:42,280 Speaker 1: actually afford, and so it's causing them to fall behind 298 00:12:42,559 --> 00:12:45,560 Speaker 1: on other bills. And then forty three percent of folks 299 00:12:45,559 --> 00:12:47,079 Speaker 1: who owe money to one of the buy now, Pay 300 00:12:47,160 --> 00:12:49,920 Speaker 1: Later companies like a Firm or Klarna, they're behind on 301 00:12:49,960 --> 00:12:54,400 Speaker 1: their payments to those companies too. Pulling from Harris also 302 00:12:54,480 --> 00:12:57,840 Speaker 1: found that more than half of respondents who use by 303 00:12:57,880 --> 00:13:00,200 Speaker 1: Now Pay Later said it allowed them to purchase more 304 00:13:00,240 --> 00:13:03,480 Speaker 1: than they could afford. Well, nearly a quarter agreed with 305 00:13:03,520 --> 00:13:05,720 Speaker 1: the statement that they're by Now Pay Later spending was 306 00:13:06,200 --> 00:13:08,760 Speaker 1: out of control. So by Now pay later is something 307 00:13:08,800 --> 00:13:10,839 Speaker 1: we have warned against because the behavioral impacts and the 308 00:13:11,440 --> 00:13:14,160 Speaker 1: downstream money impacts that can have on your life. We 309 00:13:14,320 --> 00:13:16,400 Speaker 1: just think that by now pay Later has so many 310 00:13:16,440 --> 00:13:20,320 Speaker 1: serious downsides that it's not worth even considering. We think, 311 00:13:20,400 --> 00:13:23,120 Speaker 1: though credit cards can be a tool, right, they can 312 00:13:23,160 --> 00:13:25,719 Speaker 1: be useful, or they can bring misery, by now pay 313 00:13:25,800 --> 00:13:27,920 Speaker 1: Later only seems to be causing folks to buy more 314 00:13:28,000 --> 00:13:31,160 Speaker 1: than they otherwise would, and it leads to meaningful money problems, 315 00:13:31,200 --> 00:13:32,440 Speaker 1: like they're starting to keep up. 316 00:13:32,360 --> 00:13:34,199 Speaker 2: With Like that's the thing because with by now pay Later, 317 00:13:34,280 --> 00:13:36,760 Speaker 2: it's like each transaction is in a sense, its own 318 00:13:36,800 --> 00:13:39,040 Speaker 2: credit card, it's its own lane of credit, and you've 319 00:13:39,040 --> 00:13:40,800 Speaker 2: got those payments and I feel like they can they 320 00:13:40,840 --> 00:13:44,120 Speaker 2: don't compound, but they just they build up really quickly. Yeah, 321 00:13:44,200 --> 00:13:46,200 Speaker 2: and it's just difficult to manage and to keep up 322 00:13:46,200 --> 00:13:46,640 Speaker 2: with all of that. 323 00:13:46,720 --> 00:13:48,120 Speaker 1: And you're like, when did I buy with that? And 324 00:13:48,240 --> 00:13:50,280 Speaker 1: like how many okay, how many loans do I currently 325 00:13:50,320 --> 00:13:53,040 Speaker 1: have exactly Karna, Yeah, and there's now a few of 326 00:13:53,080 --> 00:13:55,319 Speaker 1: those services that are proliferated to and you're like, I 327 00:13:55,320 --> 00:13:57,280 Speaker 1: think I've got some with a firm also, and it 328 00:13:57,400 --> 00:13:59,679 Speaker 1: just it gets out of control. Real quick, really quickly. 329 00:13:59,840 --> 00:14:02,880 Speaker 2: And you know you mentioned using credit cards like a tool. 330 00:14:03,200 --> 00:14:06,959 Speaker 2: The FTC, the Federal Trade Commission, they're actually even telling 331 00:14:07,040 --> 00:14:09,400 Speaker 2: us to pay with credit cards, and that's because of 332 00:14:09,480 --> 00:14:12,480 Speaker 2: the protections that they offer. They put out a consumer 333 00:14:12,600 --> 00:14:15,439 Speaker 2: alert earlier this week about fake ads on social media 334 00:14:15,520 --> 00:14:17,960 Speaker 2: with what they called too good to be true pricing, 335 00:14:18,440 --> 00:14:21,800 Speaker 2: and their investigation found that a lot of fake companies 336 00:14:21,800 --> 00:14:24,960 Speaker 2: out there are posting pretty compelling ads. You know, you 337 00:14:25,000 --> 00:14:26,920 Speaker 2: see that as a consumer, you click it to buy, 338 00:14:27,240 --> 00:14:29,640 Speaker 2: and what happens is you either get nothing or you 339 00:14:29,680 --> 00:14:32,160 Speaker 2: end up with a counterfeit item, and depending on how you. 340 00:14:32,080 --> 00:14:33,200 Speaker 1: Paid, you might be out of luck. 341 00:14:33,240 --> 00:14:35,080 Speaker 2: Jil, I feel like you might have been thinking this 342 00:14:35,080 --> 00:14:38,120 Speaker 2: would happen when you went to like Ralph's Backpacks and 343 00:14:38,280 --> 00:14:40,880 Speaker 2: where you bought that like a sketchy website. 344 00:14:40,960 --> 00:14:42,200 Speaker 1: It was al sporting Goods. 345 00:14:42,320 --> 00:14:45,960 Speaker 2: Okay, yeah, close enough, but you're like, I'm not sure 346 00:14:46,080 --> 00:14:48,000 Speaker 2: if this backpack is going to show up. But hey, 347 00:14:48,120 --> 00:14:50,000 Speaker 2: a couple of weeks later, the backpack showed up. You 348 00:14:50,000 --> 00:14:50,520 Speaker 2: were good to go. 349 00:14:50,680 --> 00:14:52,600 Speaker 1: Was it was almost a month later? Was it a month? 350 00:14:52,640 --> 00:14:54,080 Speaker 1: It was so long? Oh my god, but it was. 351 00:14:54,200 --> 00:14:56,080 Speaker 1: But it turned out it was a legit store, and 352 00:14:56,760 --> 00:14:58,360 Speaker 1: I was like, you know what, I can least, hey, 353 00:14:58,720 --> 00:15:00,840 Speaker 1: I can feel confident making the just because I'm making 354 00:15:00,840 --> 00:15:03,400 Speaker 1: it with a credit card. With any other form of payment, 355 00:15:03,400 --> 00:15:04,920 Speaker 1: I would not have felt okay, I would have gone else. 356 00:15:05,160 --> 00:15:07,880 Speaker 2: I have the ability to dispute the charge when you 357 00:15:07,960 --> 00:15:10,960 Speaker 2: are using a credit card like that, paying any other way, Yeah, 358 00:15:11,000 --> 00:15:13,640 Speaker 2: it just leaves you incredibly vulnerable. And so because of that, 359 00:15:14,000 --> 00:15:16,360 Speaker 2: we really like credit cards. We love the benefits they offer, 360 00:15:16,440 --> 00:15:18,840 Speaker 2: the secondary benefits, we love the cash back and the points. 361 00:15:19,840 --> 00:15:22,000 Speaker 2: Huge fans of that. We'll link to an article in 362 00:15:22,000 --> 00:15:24,200 Speaker 2: the show notes that talk about how we like to 363 00:15:24,280 --> 00:15:26,480 Speaker 2: use credit cards. But that being said, you didn't make 364 00:15:26,520 --> 00:15:28,240 Speaker 2: sure that you are using them wisely. 365 00:15:28,320 --> 00:15:30,960 Speaker 1: Yeah, and roughly half of people do. Something like fifty 366 00:15:30,960 --> 00:15:33,120 Speaker 1: percent of people pay their balance on time and unfill 367 00:15:33,160 --> 00:15:36,320 Speaker 1: every single month. Other fifty percent do not. And those 368 00:15:36,320 --> 00:15:39,120 Speaker 1: are the people, Matt, who are subsidizing the rewards of 369 00:15:39,120 --> 00:15:41,120 Speaker 1: people like you and me. And it's not because we're 370 00:15:41,280 --> 00:15:43,480 Speaker 1: enamored with the system, but it's the system. That's that's 371 00:15:43,520 --> 00:15:46,000 Speaker 1: how it works right now. And because that's how it works, like, 372 00:15:46,320 --> 00:15:48,880 Speaker 1: play the game, but play it properly and don't let 373 00:15:48,920 --> 00:15:52,040 Speaker 1: yourself get in over your heels with credit card debt, because, yeah, 374 00:15:52,280 --> 00:15:54,640 Speaker 1: I'm amazed at the casual reference that people will throw 375 00:15:54,680 --> 00:15:56,960 Speaker 1: around sometimes to having credit card debt. And I think 376 00:15:56,960 --> 00:15:58,960 Speaker 1: of it as like a pants on fire situation, like 377 00:15:58,960 --> 00:16:00,720 Speaker 1: I'm stop dropping and roll. Man, I'm getting rid of 378 00:16:00,760 --> 00:16:03,040 Speaker 1: that thing right away. But some people feel they start 379 00:16:03,080 --> 00:16:05,920 Speaker 1: to feel comfortable keeping that credit card dead around. That's 380 00:16:05,960 --> 00:16:07,840 Speaker 1: a bad place to be, right, I do not want 381 00:16:07,880 --> 00:16:10,720 Speaker 1: to carry that balance, Yeah, especially with two twenty four 382 00:16:10,720 --> 00:16:13,760 Speaker 1: percent interest. That will mess you up. Let's also talk 383 00:16:13,760 --> 00:16:16,640 Speaker 1: about caps on credit card late fees, right, they were 384 00:16:16,840 --> 00:16:19,160 Speaker 1: supposed to go into effect earlier this week. We talked 385 00:16:19,120 --> 00:16:21,360 Speaker 1: a bit about this not too long ago on the show, 386 00:16:21,440 --> 00:16:24,280 Speaker 1: but not going to happen at least for the time being. 387 00:16:24,320 --> 00:16:29,040 Speaker 1: A federal judge in Texas blocked this new CFPB rule 388 00:16:29,280 --> 00:16:31,960 Speaker 1: at least for the time being. Instead of reduced to 389 00:16:31,960 --> 00:16:33,440 Speaker 1: eight dollars late fees, I think it was supposed to 390 00:16:33,480 --> 00:16:36,560 Speaker 1: be implemented on Tuesday. Well, they can stay at roughly 391 00:16:36,680 --> 00:16:39,320 Speaker 1: four times that level for the time being. I think 392 00:16:39,360 --> 00:16:43,080 Speaker 1: the max late charge is forty one bucks. That means 393 00:16:43,320 --> 00:16:45,280 Speaker 1: that not paying your credit card bill on time, which 394 00:16:45,320 --> 00:16:47,160 Speaker 1: is a massive no. No, of course in our book, 395 00:16:47,360 --> 00:16:49,160 Speaker 1: is still going to cost you a lot more. But 396 00:16:49,240 --> 00:16:52,040 Speaker 1: whether the late bee is egregious or not, we never 397 00:16:52,120 --> 00:16:53,440 Speaker 1: want you to pay it. I don't care if it's 398 00:16:53,480 --> 00:16:57,240 Speaker 1: eight dollars or forty dollars. Don't pay a late fee, please. 399 00:16:57,280 --> 00:16:59,040 Speaker 2: It almost doesn't matter if they charge like one thousand 400 00:16:59,040 --> 00:17:00,920 Speaker 2: dollars for the late fee is either way, we don't 401 00:17:00,920 --> 00:17:02,400 Speaker 2: want you paying it, right, Yeah, and they. 402 00:17:02,440 --> 00:17:04,240 Speaker 1: Charge you one thousand bucks, like if you if you 403 00:17:04,240 --> 00:17:07,320 Speaker 1: mess that up, like obviously that's gonna be a massive hindrance, 404 00:17:07,359 --> 00:17:10,600 Speaker 1: but still hopefully that bigger stick would cause you to 405 00:17:10,680 --> 00:17:13,920 Speaker 1: do the proper thing for your finances. Right, And even 406 00:17:13,960 --> 00:17:16,320 Speaker 1: though your late fee might be smaller in the future, 407 00:17:16,680 --> 00:17:19,320 Speaker 1: you're still doing significant damage to your credit score by 408 00:17:19,320 --> 00:17:21,480 Speaker 1: paying late. So it's not just the fee, it's the 409 00:17:21,520 --> 00:17:24,199 Speaker 1: fact that you're hindering your credit score, which impacts so 410 00:17:24,359 --> 00:17:26,600 Speaker 1: many other areas of your personal finance, as we talk 411 00:17:26,640 --> 00:17:29,679 Speaker 1: about that all the time, and so automating your payment 412 00:17:30,040 --> 00:17:32,119 Speaker 1: so that it happens a date or two before the 413 00:17:32,200 --> 00:17:34,439 Speaker 1: due date is a good way to avoid those late 414 00:17:34,440 --> 00:17:37,280 Speaker 1: fees altogether. If you're paying I think I had one 415 00:17:37,440 --> 00:17:39,280 Speaker 1: late fee mat that I had to get refunded recently 416 00:17:39,280 --> 00:17:41,720 Speaker 1: because I switched bank accounts or something like that and 417 00:17:41,760 --> 00:17:43,640 Speaker 1: it didn't go through the first time, and I was like, ah, crap, 418 00:17:43,720 --> 00:17:45,600 Speaker 1: did you did the chat and ask them to waive it? Yes? 419 00:17:45,640 --> 00:17:47,520 Speaker 1: And they did. It's so crazy. Yes, it takes like 420 00:17:47,560 --> 00:17:49,600 Speaker 1: no time. And nine out of ten people remember that. 421 00:17:49,600 --> 00:17:51,399 Speaker 1: In nine out of ten people, I think something like that, 422 00:17:51,560 --> 00:17:53,199 Speaker 1: eight or nine out of ten people who ask for 423 00:17:53,240 --> 00:17:55,240 Speaker 1: a late fee to be waived get. 424 00:17:55,040 --> 00:17:57,640 Speaker 2: That double, especially if that's not something that you typically 425 00:17:57,960 --> 00:18:00,800 Speaker 2: rack up because you do handle your credit card responsibly. 426 00:18:00,840 --> 00:18:03,399 Speaker 2: But yeah, I do the same thing. I always so, like, 427 00:18:03,440 --> 00:18:06,360 Speaker 2: technically speaking, as long as you schedule your payment on 428 00:18:07,200 --> 00:18:09,080 Speaker 2: or before the due date, you're totally fine. So like literally, 429 00:18:09,080 --> 00:18:11,040 Speaker 2: if it's due on the fifteenth, schedule for the fifteenth, 430 00:18:11,040 --> 00:18:14,919 Speaker 2: you're good to go. I'm superstitious, and so I'll always 431 00:18:14,920 --> 00:18:16,800 Speaker 2: like to be extra safe. And I don't know why, 432 00:18:16,880 --> 00:18:18,680 Speaker 2: but I never choose the actual due date. I always 433 00:18:18,720 --> 00:18:22,600 Speaker 2: choose a business day prior. So if it's doing Monday, 434 00:18:22,640 --> 00:18:26,080 Speaker 2: I'll choose the friday before, and obviously if it's doing Thursday, 435 00:18:26,080 --> 00:18:26,920 Speaker 2: I'll choose Wednesday. 436 00:18:26,960 --> 00:18:28,160 Speaker 1: I don't like flirting with disaster. 437 00:18:28,600 --> 00:18:30,960 Speaker 2: I just like to be free and clear of the 438 00:18:30,960 --> 00:18:33,359 Speaker 2: potential of getting burned by the credit card companies. I'm 439 00:18:33,400 --> 00:18:35,280 Speaker 2: with you, and plus I already used up my one free. 440 00:18:35,400 --> 00:18:36,960 Speaker 2: Please waive this charge card. 441 00:18:37,040 --> 00:18:39,320 Speaker 1: That's like your monopoly get out of jail free exactly, Sorry, 442 00:18:39,320 --> 00:18:40,040 Speaker 1: you don't get another one. 443 00:18:40,040 --> 00:18:40,200 Speaker 2: Man. 444 00:18:41,480 --> 00:18:44,040 Speaker 1: We got more to get to on this episode, including 445 00:18:44,119 --> 00:18:47,040 Speaker 1: let's talk about international investing. There's some new stats on 446 00:18:47,080 --> 00:18:50,960 Speaker 1: that and it reveals something interesting about what your allocation 447 00:18:51,000 --> 00:18:53,920 Speaker 1: to international stocks should be. We'll get to that more 448 00:18:54,160 --> 00:19:04,280 Speaker 1: right after this we were back from the break. 449 00:19:04,359 --> 00:19:08,119 Speaker 2: Yeah, you were talking about that international investing, thinking about 450 00:19:08,200 --> 00:19:11,920 Speaker 2: some international exposure. It sounds so sophisticated, doesn't it. 451 00:19:12,480 --> 00:19:14,880 Speaker 1: You should be wearing a boat exactly. 452 00:19:14,600 --> 00:19:17,439 Speaker 2: Smoking a pipe. But before we get to that, it 453 00:19:17,520 --> 00:19:20,160 Speaker 2: is now time for the ludicrous headline of the week, 454 00:19:20,160 --> 00:19:23,120 Speaker 2: and it's from The Economist this week, and the headline 455 00:19:23,160 --> 00:19:26,240 Speaker 2: reads how American politics has infected investing. 456 00:19:27,200 --> 00:19:28,000 Speaker 1: H of course, you. 457 00:19:27,960 --> 00:19:31,760 Speaker 2: Gotta love the country. You gotta love our heinous politics, 458 00:19:32,080 --> 00:19:33,879 Speaker 2: like we still have a like a how long do 459 00:19:33,880 --> 00:19:35,879 Speaker 2: we have before the elections? Like how many five weeks 460 00:19:35,880 --> 00:19:39,560 Speaker 2: of the year we're discussing it ad nauseum. 461 00:19:39,800 --> 00:19:41,200 Speaker 1: There are a lot of folks out there, though. I 462 00:19:41,200 --> 00:19:43,680 Speaker 1: think they just announced the first debate too, which is yeah, 463 00:19:43,680 --> 00:19:45,400 Speaker 1: earlier this week. I'll be like a primetime fight. 464 00:19:45,640 --> 00:19:48,040 Speaker 2: I was not expecting that, to be honest, I didn't 465 00:19:48,040 --> 00:19:49,879 Speaker 2: think there were going to be any any debates. But 466 00:19:50,800 --> 00:19:52,879 Speaker 2: so the reason we wanted to talk about this is 467 00:19:52,920 --> 00:19:55,040 Speaker 2: because there are a ton of folks out there and 468 00:19:55,080 --> 00:19:57,639 Speaker 2: they think that they should change their investments based on 469 00:19:57,920 --> 00:20:01,960 Speaker 2: their politics or based on who's in office right who's president, 470 00:20:02,400 --> 00:20:06,000 Speaker 2: And this article highlights a fund specifically that allows conservatives 471 00:20:06,040 --> 00:20:10,480 Speaker 2: to invest in companies that lean in their political direction. Basically, 472 00:20:10,600 --> 00:20:14,560 Speaker 2: even investment products are catering to people's political beliefs now, 473 00:20:15,119 --> 00:20:17,560 Speaker 2: and we feel that this sucks just as much as 474 00:20:17,640 --> 00:20:21,639 Speaker 2: like recent years, ESG investing has been huge environmental, social 475 00:20:21,720 --> 00:20:25,600 Speaker 2: and governance investing. It was yeah, pretty hot, but it 476 00:20:25,640 --> 00:20:29,520 Speaker 2: actually leaned in the other political direction. And so here's 477 00:20:29,560 --> 00:20:31,680 Speaker 2: a little PSA for folks. Feel free to follow your 478 00:20:31,680 --> 00:20:35,120 Speaker 2: favorite candidates, Feel free to express your political beliefs, although 479 00:20:35,160 --> 00:20:37,199 Speaker 2: less be honest, being less political will likely make all 480 00:20:37,200 --> 00:20:39,840 Speaker 2: of us a whole lot happier. But keep in mind, 481 00:20:39,880 --> 00:20:43,959 Speaker 2: no matter what, create a firewall between your political beliefs, 482 00:20:44,000 --> 00:20:45,639 Speaker 2: how it is that you vote, and how it is 483 00:20:45,760 --> 00:20:49,520 Speaker 2: that you invest. Because election results don't impact the market 484 00:20:49,640 --> 00:20:53,719 Speaker 2: either way, according to history, keep investing regularly and in 485 00:20:53,760 --> 00:20:56,439 Speaker 2: a diversified way. They're also pointing out to the fact too, 486 00:20:56,520 --> 00:20:59,520 Speaker 2: that folks are intentionally It's not just that like, well, they. 487 00:20:59,520 --> 00:21:00,680 Speaker 1: Kind of lean this way politically. 488 00:21:00,760 --> 00:21:04,960 Speaker 2: Folks are throwing money into funds or organizations that feel 489 00:21:05,000 --> 00:21:06,320 Speaker 2: like that they align more with. 490 00:21:06,280 --> 00:21:07,159 Speaker 1: Their political beliefs. 491 00:21:07,200 --> 00:21:09,640 Speaker 2: And you can do that. It's hey, it's your money, right, 492 00:21:09,680 --> 00:21:11,679 Speaker 2: like the free country. You can do that, but just 493 00:21:11,800 --> 00:21:13,679 Speaker 2: know that you're going to be paying a price for 494 00:21:13,720 --> 00:21:16,040 Speaker 2: it because it does not lead to outsized returns. 495 00:21:16,119 --> 00:21:18,080 Speaker 1: Yeah. I think there's one thing to donate money to 496 00:21:18,440 --> 00:21:22,000 Speaker 1: your favorite candidate's campaign who you believe in kind of 497 00:21:22,000 --> 00:21:24,399 Speaker 1: what they believe in. You think that their approach to 498 00:21:24,400 --> 00:21:26,119 Speaker 1: solving some of the major problems we face as a 499 00:21:26,119 --> 00:21:30,000 Speaker 1: country is more right on, maybe than their opponent. But 500 00:21:30,440 --> 00:21:32,760 Speaker 1: it's another thing to say, I'm going to invest my 501 00:21:32,880 --> 00:21:36,200 Speaker 1: dollars according to my political ideology or you know what, Hey, 502 00:21:36,200 --> 00:21:38,320 Speaker 1: guess what if this other person gets elected, I'm actually 503 00:21:38,359 --> 00:21:40,440 Speaker 1: going to move some of my assets to cash or 504 00:21:40,480 --> 00:21:42,280 Speaker 1: something like that. Because I think the market is going 505 00:21:42,359 --> 00:21:45,000 Speaker 1: to fall apart with this person in charge. History just 506 00:21:45,119 --> 00:21:46,920 Speaker 1: shows that doesn't happen. That it doesn't happen. 507 00:21:46,960 --> 00:21:47,120 Speaker 2: Nope. 508 00:21:47,200 --> 00:21:50,840 Speaker 1: Yeah. And so if you were to make massive decisions 509 00:21:50,920 --> 00:21:53,600 Speaker 1: about how or when you invest money based on the 510 00:21:53,600 --> 00:21:55,960 Speaker 1: person who you think is going to get elected, you're 511 00:21:56,000 --> 00:21:58,159 Speaker 1: being shortsighted and in fact you're going to cost yourself 512 00:21:58,240 --> 00:21:59,000 Speaker 1: over the long run. 513 00:21:59,080 --> 00:22:00,480 Speaker 2: Firewallet, keep it siloed. 514 00:22:00,560 --> 00:22:03,240 Speaker 1: Yeah, stay true to the course. Makes me think, actually, Matt, 515 00:22:03,240 --> 00:22:06,600 Speaker 1: of a conversation I had earlier this week might actually 516 00:22:06,680 --> 00:22:09,840 Speaker 1: be a smart pivot on trading because of politics, and 517 00:22:09,880 --> 00:22:12,199 Speaker 1: the move here would be to do exactly what the 518 00:22:12,200 --> 00:22:16,159 Speaker 1: best traders in Congress are doing. Oh jeez, So I 519 00:22:16,200 --> 00:22:18,280 Speaker 1: have a friend who like it, kind of starting to 520 00:22:18,320 --> 00:22:21,960 Speaker 1: do this. Nancy Pelosi, by the way, is famous or infamous, 521 00:22:22,000 --> 00:22:25,080 Speaker 1: I guess, for her stock trading prowess, right. She she 522 00:22:25,160 --> 00:22:27,320 Speaker 1: makes far more in the market than she's made in 523 00:22:27,320 --> 00:22:28,800 Speaker 1: her day job. And she's not the only person. A 524 00:22:28,840 --> 00:22:30,680 Speaker 1: lot of people in Congress, that's true, I have done 525 00:22:30,720 --> 00:22:32,920 Speaker 1: just that. Like, this is also not a partisan thing. 526 00:22:33,200 --> 00:22:35,080 Speaker 1: Folks in Congress. They have to report trades that they 527 00:22:35,080 --> 00:22:37,600 Speaker 1: make within sixty days, and a lot of these folks 528 00:22:37,880 --> 00:22:41,159 Speaker 1: outperform the market. They do better than the folks who 529 00:22:41,280 --> 00:22:44,879 Speaker 1: run hedge funds statistically speaking, not because of their skill, 530 00:22:45,000 --> 00:22:47,280 Speaker 1: but because of the juicy information they have access to. 531 00:22:47,320 --> 00:22:49,440 Speaker 2: Because of their their committee appointments. 532 00:22:49,480 --> 00:22:52,440 Speaker 1: That's right. Yeah, and so they're hearing some Yeah, they're 533 00:22:52,440 --> 00:22:54,359 Speaker 1: hearing some of that info ahead of time. Like one 534 00:22:54,359 --> 00:22:56,720 Speaker 1: of my friends, he started following an Instagram account called 535 00:22:57,040 --> 00:22:59,959 Speaker 1: Politician Trade Tracker, and it's attempting. He's attempting to make 536 00:23:00,240 --> 00:23:02,320 Speaker 1: some of the trades that the politicians are making. They 537 00:23:02,320 --> 00:23:05,439 Speaker 1: get posted publicly, and I don't see myself going in 538 00:23:05,440 --> 00:23:07,320 Speaker 1: this direction, but I guess there's a chance that could 539 00:23:07,359 --> 00:23:08,960 Speaker 1: work out well for him. It's gonna better than maybe 540 00:23:09,000 --> 00:23:11,920 Speaker 1: the other sort of political investing strategy we talked about. 541 00:23:11,920 --> 00:23:14,880 Speaker 1: There's a one Congressman, Matt who was in some sort 542 00:23:14,920 --> 00:23:18,719 Speaker 1: of Boeing hearing and the day before the news became public, 543 00:23:18,800 --> 00:23:20,919 Speaker 1: he sold all of his Boeing stock got out of it. 544 00:23:20,920 --> 00:23:23,479 Speaker 1: It's just the right time, of course, it's so corrupt. 545 00:23:23,480 --> 00:23:24,800 Speaker 1: I don't want to answer questions about it. 546 00:23:24,840 --> 00:23:27,800 Speaker 2: But here is why I don't think that that strategy 547 00:23:27,840 --> 00:23:29,720 Speaker 2: is gonna work, and that's because they like they can 548 00:23:29,760 --> 00:23:32,399 Speaker 2: wait sixty days yep before they have to disclose that. 549 00:23:32,840 --> 00:23:35,520 Speaker 1: And so yeah, the Boeing knowing that Boeing thing sixty 550 00:23:35,600 --> 00:23:36,400 Speaker 1: days after the fact. 551 00:23:36,200 --> 00:23:39,360 Speaker 2: Does or let too late exactly, and so like, I 552 00:23:39,440 --> 00:23:41,760 Speaker 2: know that what that typically means. Though yes, there is 553 00:23:41,960 --> 00:23:46,560 Speaker 2: likely some underlying information that means good or bad for 554 00:23:46,640 --> 00:23:49,199 Speaker 2: a specific company, but you gotta admit there are some 555 00:23:49,560 --> 00:23:52,240 Speaker 2: meme stock like elements to this. And just look to 556 00:23:52,320 --> 00:23:54,679 Speaker 2: even earlier this week, Game Stop was back, and guess what, 557 00:23:54,800 --> 00:23:57,080 Speaker 2: if you had purchased on Monday, you would have been 558 00:23:57,280 --> 00:23:58,040 Speaker 2: doing just fine. 559 00:23:58,080 --> 00:24:00,000 Speaker 1: But if you purchased on Tuesday, well that's why. 560 00:24:00,040 --> 00:24:02,119 Speaker 2: And everybody that purchaon on Monday was selling, Yeah, and 561 00:24:02,160 --> 00:24:04,639 Speaker 2: you'd be the sucker left holding the bag and so like. 562 00:24:05,119 --> 00:24:07,199 Speaker 2: And this again, this is days and days like in 563 00:24:07,240 --> 00:24:09,800 Speaker 2: game stots instance, It's not just days, but it's like 564 00:24:09,840 --> 00:24:12,480 Speaker 2: hours and minutes that matter. And so I got to 565 00:24:12,480 --> 00:24:15,840 Speaker 2: think that someone who's trying to track what it is 566 00:24:15,880 --> 00:24:18,440 Speaker 2: that you know, Pelosi is doing with when it comes 567 00:24:18,440 --> 00:24:20,720 Speaker 2: to her trades, man, it just doesn't seem all that 568 00:24:20,760 --> 00:24:21,119 Speaker 2: great to me. 569 00:24:21,160 --> 00:24:24,640 Speaker 1: He might be a little too far behind the curve. Yes, yeah, exactly. 570 00:24:24,680 --> 00:24:26,919 Speaker 2: Yeah, And they probably want that information to get out there, 571 00:24:26,960 --> 00:24:28,480 Speaker 2: because if they're buying a bunch of stuff up and 572 00:24:28,480 --> 00:24:30,520 Speaker 2: then it gets reported that, oh they must know something 573 00:24:30,720 --> 00:24:33,000 Speaker 2: that everyone piles on and they're like see yeah, And 574 00:24:33,040 --> 00:24:35,119 Speaker 2: this is just another reason, by the way, that that 575 00:24:35,240 --> 00:24:36,760 Speaker 2: our elected too pessimistic. 576 00:24:36,800 --> 00:24:38,399 Speaker 1: I don't know, no, I don't think. I mean our 577 00:24:38,400 --> 00:24:40,639 Speaker 1: elected officials should not be able to trade individual stocks. 578 00:24:40,640 --> 00:24:42,320 Speaker 1: They should. If NX fonds are good enough for the 579 00:24:42,320 --> 00:24:44,159 Speaker 1: rest of us, they should be good enough for our 580 00:24:44,160 --> 00:24:47,240 Speaker 1: elected officials too. And that's because it's we talk about 581 00:24:47,280 --> 00:24:49,480 Speaker 1: inside your training, like when it happens, like the hammer 582 00:24:49,480 --> 00:24:52,719 Speaker 1: comes down, like on somebody who's been found guilty of that, 583 00:24:52,800 --> 00:24:53,840 Speaker 1: like look at Martha Stewart. 584 00:24:53,880 --> 00:24:55,760 Speaker 2: But this this is like the exact same thing. It is, 585 00:24:55,800 --> 00:24:58,280 Speaker 2: like it's just the legal conflict of interest when it 586 00:24:58,320 --> 00:25:01,399 Speaker 2: comes to you presiding over a committee that has that 587 00:25:01,520 --> 00:25:03,800 Speaker 2: is privy to this information and now you get to 588 00:25:03,800 --> 00:25:04,880 Speaker 2: go out and make your own trade. 589 00:25:04,880 --> 00:25:06,600 Speaker 1: I think it was actually one of our local senators 590 00:25:06,600 --> 00:25:08,199 Speaker 1: here in Georgia, I don't remember which one map, but 591 00:25:08,359 --> 00:25:12,159 Speaker 1: one of them introduced legislation to try and ban I 592 00:25:12,160 --> 00:25:14,000 Speaker 1: think it should totally be banned it. That'd be great Yeah, 593 00:25:14,000 --> 00:25:16,320 Speaker 1: it didn't make it an It didn't make any progress, of course, 594 00:25:16,359 --> 00:25:17,639 Speaker 1: but at least he stuck up for it. 595 00:25:17,640 --> 00:25:19,280 Speaker 2: It's not that you can't invest, it's just that you 596 00:25:19,280 --> 00:25:21,960 Speaker 2: should be investing only in index funds as opposed to 597 00:25:22,040 --> 00:25:24,160 Speaker 2: individual companies. Hey, you want to benefit from the good 598 00:25:24,240 --> 00:25:26,280 Speaker 2: work that you're doing as a public official, as a 599 00:25:26,280 --> 00:25:29,440 Speaker 2: public servant. Okay, but let's make sure the entire economy 600 00:25:29,800 --> 00:25:31,760 Speaker 2: is doing good, not just like these companies that you've 601 00:25:31,800 --> 00:25:34,640 Speaker 2: cherry picked that you get to benefit from. And while 602 00:25:34,640 --> 00:25:37,439 Speaker 2: we're talking about investing, if you are in a target 603 00:25:37,520 --> 00:25:40,160 Speaker 2: date fund or if you're in an SMP fund SMP 604 00:25:40,240 --> 00:25:44,200 Speaker 2: five under fund, you've likely got enough international exposure even 605 00:25:44,240 --> 00:25:47,760 Speaker 2: though you don't own any foreign companies. That was always 606 00:25:47,800 --> 00:25:51,200 Speaker 2: what Vanguard founder Jack Bogel what he believed. 607 00:25:51,400 --> 00:25:52,640 Speaker 1: I've always agreed, but. 608 00:25:52,680 --> 00:25:55,960 Speaker 2: Some would call that home country bias, that if you 609 00:25:55,960 --> 00:26:00,240 Speaker 2: don't own emerging market ETFs or stocks, then you have 610 00:26:00,280 --> 00:26:03,679 Speaker 2: exposure to foreign companies, you aren't diversified enough. But the 611 00:26:03,760 --> 00:26:06,800 Speaker 2: argument for a US centric approach isn't because it's not 612 00:26:06,880 --> 00:26:10,600 Speaker 2: important to have exposure to foreign markets. It's that investing 613 00:26:10,640 --> 00:26:14,120 Speaker 2: in the largest US corporations gives you a fair bit 614 00:26:14,200 --> 00:26:14,399 Speaker 2: of that. 615 00:26:14,800 --> 00:26:18,199 Speaker 1: It's already baked in. This is a mainstay of the 616 00:26:18,960 --> 00:26:23,040 Speaker 1: investment debates mat that happens is do you need international 617 00:26:23,080 --> 00:26:25,199 Speaker 1: exposure or not? But I tend agree with what you 618 00:26:25,320 --> 00:26:28,399 Speaker 1: just said. You know, only investing in US stocks doesn't 619 00:26:28,440 --> 00:26:31,240 Speaker 1: mean that you're not exposed to overseas economies. The US 620 00:26:31,280 --> 00:26:35,760 Speaker 1: stock market, of course, includes many multinational corporations, and a 621 00:26:35,760 --> 00:26:38,439 Speaker 1: lot of those corporations conduct a whole lot of business abroad. 622 00:26:38,600 --> 00:26:41,680 Speaker 1: Think about were recently in the Dominican Republic. How many 623 00:26:41,720 --> 00:26:44,480 Speaker 1: KFCs did you see? I saw a lot, Right, that's 624 00:26:44,480 --> 00:26:45,880 Speaker 1: a US based company. 625 00:26:45,600 --> 00:26:48,040 Speaker 2: KFCs, as well as Nathan's Nathan. 626 00:26:48,960 --> 00:26:52,320 Speaker 1: Exactly like you're used to seeing US companies and their 627 00:26:52,400 --> 00:26:55,199 Speaker 1: names and their brands, their locals plastered all over the 628 00:26:55,200 --> 00:26:57,320 Speaker 1: place when you travel to different parts of the world. 629 00:26:57,520 --> 00:27:00,919 Speaker 1: And according to recent findings from a company called fact Set, 630 00:27:01,200 --> 00:27:03,480 Speaker 1: forty one percent of revenue generated by S and P 631 00:27:03,560 --> 00:27:07,760 Speaker 1: five hundred companies comes from international markets. Right boom. This 632 00:27:08,160 --> 00:27:10,600 Speaker 1: I think means that by owning a simple S and 633 00:27:10,600 --> 00:27:13,800 Speaker 1: P five hundred index fund, you still have a significant 634 00:27:13,800 --> 00:27:17,400 Speaker 1: amount of international exposure in your life. Again, I think 635 00:27:17,440 --> 00:27:19,879 Speaker 1: good folks can come out on different sides of this debate, 636 00:27:20,280 --> 00:27:23,000 Speaker 1: but I also think that this is crucial information. It 637 00:27:23,040 --> 00:27:26,440 Speaker 1: can help people feel more comfortable socking their money into 638 00:27:26,440 --> 00:27:28,320 Speaker 1: a total stock market or S and P five hundred 639 00:27:28,320 --> 00:27:31,560 Speaker 1: index fund while avoiding some of the fancier and the 640 00:27:31,600 --> 00:27:36,800 Speaker 1: often more expensive international allocation possibilities. The biggest reason I 641 00:27:36,800 --> 00:27:40,439 Speaker 1: think for owning international stocks is potentially mean reversion right 642 00:27:40,480 --> 00:27:43,360 Speaker 1: in the fact that US stock evaluations are a little 643 00:27:43,400 --> 00:27:45,760 Speaker 1: bit frothy. But a lot of people would say, oh, 644 00:27:45,760 --> 00:27:48,040 Speaker 1: you don't have enough international exposure if you're investing only 645 00:27:48,119 --> 00:27:50,879 Speaker 1: in the US stock market. I think that argument probably 646 00:27:50,880 --> 00:27:53,199 Speaker 1: isn't a great one. Yep, there's no need to get fancy. 647 00:27:53,359 --> 00:27:56,040 Speaker 2: Just stick with the Vanguard's boring old S ANDB five 648 00:27:56,080 --> 00:27:57,600 Speaker 2: hundred etf VY. 649 00:27:57,880 --> 00:27:59,679 Speaker 1: That's my favorite. It's simpler. It is too Matt. I 650 00:27:59,680 --> 00:28:01,960 Speaker 1: feel like the easier it is for people to stay 651 00:28:01,960 --> 00:28:03,800 Speaker 1: the course and the more funds you feel like you 652 00:28:03,800 --> 00:28:06,960 Speaker 1: need to own, people start getting into the ten, twelve, 653 00:28:06,960 --> 00:28:10,520 Speaker 1: fifteen funds that they own, rebalancing all that stuff. It 654 00:28:10,560 --> 00:28:12,919 Speaker 1: then it overcomplicates things that people say buying and selling 655 00:28:12,960 --> 00:28:14,680 Speaker 1: at the wrong time. They throw in the towel. Maybe 656 00:28:14,680 --> 00:28:17,320 Speaker 1: are they they're less thoughtful about their investments. And I 657 00:28:17,320 --> 00:28:18,960 Speaker 1: do think that the simpler it is, the easier it 658 00:28:19,000 --> 00:28:21,200 Speaker 1: is to monitor, the easier it is to stay the course. 659 00:28:21,200 --> 00:28:23,639 Speaker 2: But let's talk about whether or not social Security is 660 00:28:23,720 --> 00:28:26,840 Speaker 2: failing the writing. It's been on the wall that Social 661 00:28:26,840 --> 00:28:29,480 Speaker 2: Security is not doing so well. It's great that folks 662 00:28:29,520 --> 00:28:33,480 Speaker 2: are living longer, but the reality is that the system 663 00:28:33,680 --> 00:28:37,000 Speaker 2: is being used as like a multi decade retirement fund, 664 00:28:37,400 --> 00:28:40,400 Speaker 2: and negative demographic trends are creating a problem. Basically, like 665 00:28:40,560 --> 00:28:42,960 Speaker 2: imagine an upside down pyramid is a good way to 666 00:28:43,000 --> 00:28:47,240 Speaker 2: visualize less, fewer folks being able to support an aging population. 667 00:28:47,400 --> 00:28:49,760 Speaker 1: Just be honest, it's not your fault. You had four kids, 668 00:28:50,080 --> 00:28:50,680 Speaker 1: I had three. 669 00:28:51,040 --> 00:28:52,840 Speaker 2: It's those people who, hey, we're playing our part ye 670 00:28:53,920 --> 00:28:54,480 Speaker 2: to make things. 671 00:28:54,760 --> 00:28:56,480 Speaker 1: We need more people to hit in that direction. 672 00:28:56,680 --> 00:28:58,280 Speaker 2: Yeah. So the reason we bring this up is because 673 00:28:58,320 --> 00:29:00,360 Speaker 2: the government report was just released last week and it 674 00:29:00,360 --> 00:29:02,920 Speaker 2: predicts that the Social Security Trust Fund is going to 675 00:29:02,960 --> 00:29:05,800 Speaker 2: run out of money in twenty thirty three, and the 676 00:29:05,840 --> 00:29:09,840 Speaker 2: report states that at that point, benefits would automatically be 677 00:29:09,880 --> 00:29:13,480 Speaker 2: cut by twenty one percent unless elected officials do something 678 00:29:13,600 --> 00:29:16,960 Speaker 2: in the meantime that twenty thirty three day. It actually 679 00:29:16,960 --> 00:29:20,400 Speaker 2: hasn't changed since we discussed the future of social security 680 00:29:20,440 --> 00:29:23,560 Speaker 2: in depth back in episode four thirteen. That was a 681 00:29:23,560 --> 00:29:26,320 Speaker 2: few years ago, by the way, But it does drive 682 00:29:26,360 --> 00:29:28,400 Speaker 2: home to the point that the projections that you'll see 683 00:29:28,440 --> 00:29:30,880 Speaker 2: on the social Security dot Gov website that they might 684 00:29:30,920 --> 00:29:35,240 Speaker 2: be a bit rosier than your actual future retirement reality. Yeah. 685 00:29:35,280 --> 00:29:37,320 Speaker 1: Man, I think people go to one of two extremes 686 00:29:37,320 --> 00:29:40,640 Speaker 1: when they're thinking about the reality of social security in 687 00:29:40,800 --> 00:29:43,400 Speaker 1: how it's going to impact their ability to retire. Some 688 00:29:43,480 --> 00:29:46,560 Speaker 1: people are they're so conservative they say, I'm not factoring 689 00:29:46,600 --> 00:29:49,160 Speaker 1: in any social security and plus I'm not sure it's 690 00:29:49,200 --> 00:29:51,560 Speaker 1: even going to be there for me. Well, in that episode, 691 00:29:51,560 --> 00:29:54,080 Speaker 1: you mentioned like we kind of debunked that we don't 692 00:29:54,120 --> 00:29:56,840 Speaker 1: think that there's any way, form or fashion that social 693 00:29:56,840 --> 00:30:01,480 Speaker 1: security just goes away. That's not political tenable, like that's 694 00:30:01,480 --> 00:30:03,240 Speaker 1: just not how it's going to play out. But you're 695 00:30:03,320 --> 00:30:06,520 Speaker 1: right that if our politicians don't get their act together 696 00:30:06,560 --> 00:30:08,400 Speaker 1: in the near future, and this was something that we 697 00:30:08,520 --> 00:30:11,600 Speaker 1: mentioned in that episode too, that a real possibility is 698 00:30:12,040 --> 00:30:15,240 Speaker 1: shaving those payouts that what you see, like you said, 699 00:30:15,280 --> 00:30:18,000 Speaker 1: when you log into social Security dot gov, you're like, oh, 700 00:30:18,400 --> 00:30:20,719 Speaker 1: thirty eight hundred bucks a month, that's gonna be awesome. 701 00:30:21,040 --> 00:30:23,480 Speaker 1: But then you knock that down by twenty percent, you're 702 00:30:23,480 --> 00:30:25,040 Speaker 1: talking about three grand a month. And so you don't 703 00:30:25,080 --> 00:30:27,920 Speaker 1: want to overplan and overestimate what you're gonna have in 704 00:30:27,920 --> 00:30:31,640 Speaker 1: social Security because then you might be undersaving for yourself, 705 00:30:31,720 --> 00:30:33,360 Speaker 1: right Yeah, yeah, for that reason. 706 00:30:33,400 --> 00:30:35,600 Speaker 2: Personally, I mean, either taxes are going to go up 707 00:30:36,280 --> 00:30:38,600 Speaker 2: and or most likely the benefits are going to get reduced. 708 00:30:38,640 --> 00:30:40,320 Speaker 2: And for that reason, I think the best way to 709 00:30:40,320 --> 00:30:43,400 Speaker 2: think about it is to not see social Security as 710 00:30:43,400 --> 00:30:46,000 Speaker 2: a dependable source of income. Yeah, within retirement, Like I 711 00:30:46,040 --> 00:30:47,560 Speaker 2: like to think about it like an ice cream Sunday 712 00:30:47,600 --> 00:30:49,560 Speaker 2: factor in a smaller portion of a smaller portion. Yeah, 713 00:30:49,640 --> 00:30:51,800 Speaker 2: by social Security on that ice cream Sunday, it's just 714 00:30:51,840 --> 00:30:54,480 Speaker 2: the whip cream on top, right, Like it's nice that 715 00:30:54,480 --> 00:30:57,200 Speaker 2: it's there. I'll certainly take it, But over time it 716 00:30:57,280 --> 00:30:59,600 Speaker 2: kind of like starts to melt into nothing and it's 717 00:30:59,640 --> 00:31:02,720 Speaker 2: mostly air anyway, Like, it's not very substantive. You've got 718 00:31:02,800 --> 00:31:05,640 Speaker 2: to show up with your own ice cream if you're 719 00:31:05,640 --> 00:31:07,680 Speaker 2: going to be able to enjoy anything in your retirement. 720 00:31:07,800 --> 00:31:09,960 Speaker 1: Yeah. I mean, again, I don't want to say like 721 00:31:10,600 --> 00:31:13,280 Speaker 1: abandoned hopes of receiving any social Security I think it 722 00:31:13,800 --> 00:31:16,920 Speaker 1: planning on receiving some makes a whole lot of sense. Yeah, 723 00:31:16,920 --> 00:31:18,480 Speaker 1: but I think you also don't want to be over 724 00:31:18,560 --> 00:31:21,000 Speaker 1: relying on it and overestimate what you're going to be 725 00:31:21,000 --> 00:31:21,440 Speaker 1: able to get. 726 00:31:21,720 --> 00:31:24,200 Speaker 2: It's the toppings, it's the nuts, because whip cream does 727 00:31:24,240 --> 00:31:27,000 Speaker 2: seem a bit ephemeral, like it's like it's just gonna 728 00:31:27,120 --> 00:31:29,000 Speaker 2: get blown away in the way. No, there's some reality 729 00:31:29,040 --> 00:31:31,080 Speaker 2: to the fact that it's like the nuts and chocolate chips. 730 00:31:31,120 --> 00:31:32,480 Speaker 1: How about that. So they're not going to pull the 731 00:31:32,520 --> 00:31:34,000 Speaker 1: rug out from under you. But you also want to 732 00:31:34,040 --> 00:31:37,080 Speaker 1: make sure that you're relying on yourself for the vast 733 00:31:37,080 --> 00:31:40,720 Speaker 1: majority of your retirement income. Right. So I think when 734 00:31:40,720 --> 00:31:42,920 Speaker 1: you look at this report, Matt, it's not glowing, but 735 00:31:42,960 --> 00:31:47,160 Speaker 1: it's also not damning. I think things really look similar 736 00:31:47,520 --> 00:31:49,920 Speaker 1: to what we have when we did a deep dive 737 00:31:49,960 --> 00:31:52,520 Speaker 1: a few years ago. Like, things still look the same. 738 00:31:52,880 --> 00:31:54,480 Speaker 1: But people are going to see a whole lot of 739 00:31:55,120 --> 00:31:57,760 Speaker 1: triggering headlines. I think about this report. Some people are 740 00:31:57,760 --> 00:31:59,480 Speaker 1: going to be like, oh, social Security is going away, 741 00:31:59,520 --> 00:32:01,520 Speaker 1: and some and and people are gonna freak out on 742 00:32:01,560 --> 00:32:03,880 Speaker 1: both sides of the spectrum. And the truth is that 743 00:32:04,360 --> 00:32:06,720 Speaker 1: reality lives somewhere in the middle as usual. 744 00:32:06,800 --> 00:32:08,360 Speaker 2: That's right. I think that's gonna be it for our 745 00:32:08,440 --> 00:32:10,520 Speaker 2: Friday flight. Before we end it though, a quick thanks 746 00:32:10,520 --> 00:32:13,280 Speaker 2: to Pamela R. For referring to the how To Money 747 00:32:13,280 --> 00:32:15,720 Speaker 2: newsletter to some friends of hers. Pamela, we wouldn't be 748 00:32:15,720 --> 00:32:18,160 Speaker 2: able to do it without readers like you who are 749 00:32:18,200 --> 00:32:21,200 Speaker 2: not only reading the newsletter but sending it along to 750 00:32:21,320 --> 00:32:24,160 Speaker 2: friends who also need a good dose of personal finance 751 00:32:24,160 --> 00:32:26,080 Speaker 2: in their inbox every Tuesday morning, no. 752 00:32:26,000 --> 00:32:27,480 Speaker 1: Doubt, and you can sign up for the HOA Money 753 00:32:27,520 --> 00:32:30,360 Speaker 1: Newsletter up on our website at hotamoney dot com slash 754 00:32:30,520 --> 00:32:32,800 Speaker 1: newsletter maw. That's gonna do it for this one. Until 755 00:32:32,840 --> 00:32:36,160 Speaker 1: next time, Best Friends Out, Best Friends Out.