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Speaker 1: Welcome to How the Money. I'm Joel and I am Matt.

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Speaker 1: Today we are answering your listener questions. That's right, Joel.

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Speaker 1: We've got five listener questions to get to, including one

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Speaker 1: about a secured credit card when that might make sense

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Speaker 1: for somebody. We're gonna talk about renting a house or

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Speaker 1: an apartment to a family member. Yeah, there's gonna be

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Speaker 1: some interesting things there. Uh, and then as well as

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Speaker 1: some factors to consider when you're trying to save the

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Speaker 1: most possible money when it comes to your insurance. We're

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Speaker 1: gonna get to those three questions plus two others during

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Speaker 1: this episode. Man, let's do it. Man. I'm looking forward

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Speaker 1: to it. And it is always interesting when you rent

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Speaker 1: to a family member. I um actually just waited into

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Speaker 1: those waters itself. We'll talk about that when we answer

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Speaker 1: that question. But before we get to that, Matt, I

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Speaker 1: was kind of wondering, like, I just had some tenants

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Speaker 1: to move out, um, and they left behind a couple

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Speaker 1: of interesting things. Sometimes when it tendant leaves behind something interesting,

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Speaker 1: it's actually bad. It's like clean up duty. Normally, the

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Speaker 1: surprises you receive after a tennant moves out are yeah,

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Speaker 1: not good. Surprises. I mean that at least they're a hassle, right,

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Speaker 1: you know, like when it comes to them leaving something.

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Speaker 1: But sometimes occasionally it can be a there can be

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Speaker 1: a small perk associated with being a landlord. You come

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Speaker 1: across some interesting items or in my case recently, man,

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Speaker 1: I came across something that was actually really sweet. They

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Speaker 1: had left behind one of those vertical bike storage racks,

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Speaker 1: you know, like where you lean it up against a

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Speaker 1: wall and then you take your bike and you can,

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Speaker 1: you know, store it on the second floor of that

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Speaker 1: little bike rack while there's another bike below it. So

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Speaker 1: you better believe I snashed that thing up man through

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Speaker 1: in the van, brought it home, stuck it down on

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Speaker 1: the bike shop, and it means I'm way more organized

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Speaker 1: down there. Yeah. How about you. Have you ever had

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Speaker 1: anything that you're like, oh, that's pretty cool. Okay, So

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Speaker 1: my tenants had just moved out. They left a screen door.

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Speaker 1: That's really nice. Yeah, so especially for future tenants that

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Speaker 1: have animals. It's got like a little doggie door and

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Speaker 1: it and stuff. They put that in there, like we

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Speaker 1: can't use it the next place. Do you want to

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Speaker 1: keep it or do you want us to take it out.

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Speaker 1: I'm like, no, leave it, thanks, it's really nice, nice

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Speaker 1: of you. So occasionally get something like that. One time

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Speaker 1: somebody left a couple of empty pro pain tanks or

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Speaker 1: mostly empty, and those are great too. Many This is

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Speaker 1: like gold because like it's so much cheaper to fill

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Speaker 1: a propain tank than trade and value instead of having

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Speaker 1: to buy a whole new tank. Exactly, you've got that

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Speaker 1: smoker going on, so you need to have multiple tanks

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Speaker 1: in rotation exactly. Yeah, you gotta gotta be able to

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Speaker 1: switch them out, you know, and just a quick minute.

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Speaker 1: But yeah, those are probably the best. Nothing like, nothing

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Speaker 1: like incredible. I'm sure our listeners are like a pro

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Speaker 1: pain tank, cool dude, But when you're frugal, every little

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Speaker 1: thing is is nice and helpful, so you actually admit

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Speaker 1: there are all sorts of things. Actually, the more we

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Speaker 1: talk about it that we can dig deep and and

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Speaker 1: think of all sorts of weird stuff. But you mentioning

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Speaker 1: pro pain tanks made me think of I also had

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Speaker 1: a tendant one time. Leave behind this like Swedish fireplace

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Speaker 1: looking things. Basically, they're these cross sections of a tree,

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Speaker 1: so they're like these rounds and then the inside of

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Speaker 1: it's kind of like carved out and then there's cool

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Speaker 1: like lump charcoal inside of it. And it's supposed to

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Speaker 1: be the sort of self contained fire pit and you

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Speaker 1: can cook on top of it. And I had never

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Speaker 1: seen one of those before in my life, but I

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Speaker 1: thought it looks like fun. So we totally totally brought

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Speaker 1: out home and we cook some hot dogs on it,

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Speaker 1: put a little cast arn on it. We kind of

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Speaker 1: did a little backyard cooking. It's sort of like a

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Speaker 1: pretend camping day with the girls, but it totally works.

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Speaker 1: I don't think I would actually spend my money on that,

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Speaker 1: but yeah, one of those weird things that you wouldn't

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Speaker 1: purchase on your own. But it's like, well, I'll take

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Speaker 1: this home and give it a shot. Yeah, yeah, we'll

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Speaker 1: give it a shot. I like it, and it is.

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Speaker 1: It is fascinating the things that people choose to leave behind. Uh,

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Speaker 1: sometimes worth something, sometimes worth nothing, But a lot of

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Speaker 1: times it's a hassle. Congrats on the new bike crack though.

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Speaker 1: I'll show you a picture of it here soon. Okay,

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Speaker 1: looking forward to it. All right, Well, let's move on

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Speaker 1: to the beer that we're having on the show today.

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Speaker 1: This one is called Seeing Double and it's a double

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Speaker 1: dry Hawk to I p a By and Derby Brewing Company,

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Speaker 1: their local just outside of Atlanta. And we'll give our

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Speaker 1: thoughts on this beer at the end of the episode.

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Speaker 1: But for now, Matt, let's get onto listener questions for

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Speaker 1: how to Money. Listeners who want to submit a question

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Speaker 1: for or a future ask H team episode, we'd love

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Speaker 1: to hear from you. Just got how to Money dot

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Speaker 1: com slash ask There are simple directions there to create

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Speaker 1: and then submit send over your voice memo so that

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Speaker 1: Matt and I can take your question on an upcoming episode.

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Speaker 1: All right, let's get to the first one today, though, Matt.

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Speaker 1: This one is about renting to a family member. Hi, guys,

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Speaker 1: this is Greg Siky from Naperville, Illinois. Two part question

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Speaker 1: number one. When your theme music starts playing, do you

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Speaker 1: two guys get up and start dancing wildly? Just curious?

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Speaker 1: The second part is I bought a condo. My daughter

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Speaker 1: lives in the condo and pays me rent. Do you

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Speaker 1: know if I have to report that rental income that

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Speaker 1: I give from my daughter? Thanks a lot of guys,

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Speaker 1: keep up the great work. Greg. Right now, I am

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Speaker 1: dancing in my mind. I saw you trking, buddy, You're

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Speaker 1: getting on it there. We don't do that do that

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Speaker 1: all that often here. You know I mentioned the kettle bell.

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Speaker 1: I do more moving around here down in the office

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Speaker 1: with a kettle bone. You know, I'm trying to keep

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Speaker 1: my back strong. Dude. All right, Well, I'm gonna take

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Speaker 1: Greg's advice. Man, I'm not start dancing when the music

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Speaker 1: plays from here on out. We should do that more often.

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Speaker 1: And by the way, I still really enjoy our our music.

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Speaker 1: You know, we've got our intro music. We've gotta break music.

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Speaker 1: I feel like it's still holding up. You like it?

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Speaker 1: I agree, Yeah, although we've had some people accuse us

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Speaker 1: of sounding like nine nineties entertainments tonight, and I'm not

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Speaker 1: gonna lie. It does. Some of it does, But when

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Speaker 1: you put them side by side, you realize, oh yeah,

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Speaker 1: in fact, it does something like that. We didn't realize

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Speaker 1: that at the time, and most people they don't remember

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Speaker 1: that music from I hope the way back then. I

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Speaker 1: hope Mary Heart doesn't sue us. That's true. Well, Greg,

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Speaker 1: the quick answer to to your question is, yes, you

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Speaker 1: do have to report that income to the I R S.

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Speaker 1: But a more important question that we want to ask

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Speaker 1: you is whether or not you charged your daughter fair

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Speaker 1: market rent, because that's when tax deductions come into play.

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Speaker 1: If you charged fair market rent, that means you will

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Speaker 1: also be able to deduct any typical expenses associated with

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Speaker 1: real estate. So we're talking about things like your mortgage interest, utilities, repairs,

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Speaker 1: and you can even you know, still carry forward losses, uh,

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Speaker 1: like if you renovated the condo. Things like that, some

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Speaker 1: larger expenses you can carry forward into future years. Yeah,

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Speaker 1: and that is one of the benefits of real estate

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Speaker 1: right of of rental real estate is the tax benefits,

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Speaker 1: including your ability to deduct all those things. However, Greg,

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Speaker 1: if you rented to your daughter for below market value rent,

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Speaker 1: then unfortunately the I r S considers that a not

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Speaker 1: for profit venture, and that means that you're limited to

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Speaker 1: the types of deductions that you can take on that property.

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Speaker 1: You can still take a mortgage interest deduction, but you

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Speaker 1: can't take any of the typical deductions that most real

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Speaker 1: estate investors are interested in from a business point of view.

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Speaker 1: So this is one way that actually not charging enough

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Speaker 1: in rent can cost you more than you realized. Charging

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Speaker 1: too little can adversely affect your tax situation. Yeah, it

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Speaker 1: could be a double way. Me. That's actually the exact

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Speaker 1: term the I R S uses is a double way. No,

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Speaker 1: they don't, but we would like to inform you that

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Speaker 1: you've just been hit with a double waymy right. But Greg,

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Speaker 1: you know, ultimately it's your property, so you can do

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Speaker 1: what you want with it. Like you could slash the

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Speaker 1: rent from nine a month to ninety. Uh. And although

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Speaker 1: that would be awesome for your daughter, just realize that

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Speaker 1: means the I R S will then categorize that condo

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Speaker 1: as a personal use property and those suite deductions are

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Speaker 1: no longer possible. If you're looking for a way to

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Speaker 1: cut her a break, then you can definitely implement sort

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Speaker 1: of like a ten percent discount. Uh. The I R

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Speaker 1: S is actually even decided in favor of a quote

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Speaker 1: unquote good tenant discount before, but beyond that it starts

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Speaker 1: getting really dicey. Yes, So if you were charging other

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Speaker 1: people nine, you could decide to charge your daughter eight

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Speaker 1: hundred dollars and you would be within the I R

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Speaker 1: S guidelines. That would be okay. But if you start

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Speaker 1: charging her six or seven or ninety, you would be

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Speaker 1: uh be putting yourself in a precarious spot with the

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Speaker 1: I r S, and you wouldn't be able to take

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Speaker 1: advantage of some of those deductions. So yes, report the

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Speaker 1: rental income and get those deductions. By the way, Matt

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Speaker 1: I said, I was gonna mention this. I just started

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Speaker 1: renting out a house just around the corner from where

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Speaker 1: we live to my little sister, the house that Emily

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Speaker 1: and I lived in years ago. And they were, you know,

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Speaker 1: in this pandemic. They've been in a studio apartment and

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Speaker 1: she and her husband and that's gotten maybe a little

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Speaker 1: too claustrophobic. I'm sure they're at each other's throats a

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Speaker 1: little bit. They love each other, but they're tired of

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Speaker 1: each other, I think for a while there. But yes,

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Speaker 1: so now they're in a two two and I would

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Speaker 1: just like to be able to sit at home and

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Speaker 1: not stare at your face exactly exactly, nothing hostile. Everything's okay.

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Speaker 1: I think you're gonna be better now. But he learned

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Speaker 1: a two too. But um, yeah, I was able to

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Speaker 1: to give them the ten percent discount. Um, I thought

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Speaker 1: about charging ten percent more just to really stick within

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Speaker 1: those I r S guidelines and just you know, I

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Speaker 1: think I think she would have been okay with that too.

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Speaker 1: I want to make sure I steer clear of any

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Speaker 1: sort of i RS red flags. I don't want that

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Speaker 1: double way me in my life. Right. Well, it's worth

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Speaker 1: pointing out that these guidelines, it's not specific to family only.

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Speaker 1: You know, this is across the board. It doesn't it

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Speaker 1: doesn't have to be a relative or somebody you know

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Speaker 1: where that would raise concerns if you drastically cut rents

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Speaker 1: at a property for anybody, regardless of their family, and

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Speaker 1: that's something that would keep you from being able to

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Speaker 1: take full advantage of all those deductions. Yeah, it's just

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Speaker 1: that usually that question gets brought up when it's a

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Speaker 1: family member of play who you want to help out exactly. Yeah, alright,

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Speaker 1: we've got more questions to get to, including how do

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Speaker 1: you shop for the right insurance company. We'll get to

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Speaker 1: that and more right after this break. All Right, we're

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Speaker 1: back from the break, and we've got a listener who

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Speaker 1: wants to save some money when it comes to their insurance,

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Speaker 1: but they also don't want to be cheap. Hey, Man

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Speaker 1: and Joel, I'm Danny from Connecticut. Count me as a

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Speaker 1: loyal and long time listener, you guys, have been total

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Speaker 1: guides and gurus along my financial journey, so major kudos

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Speaker 1: and much admiration. I've learned so much from you. Now

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Speaker 1: to my question, My wife Susan and I are under

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Speaker 1: contract on our first house and we are shopping now

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Speaker 1: for homeowners insurance. Our car renters and property insurance are

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Speaker 1: all with the same company. Of course, they want to

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Speaker 1: sweeten the deal with yet another bundle discount if we

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Speaker 1: stick with them on homeowners too. We both grew up

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Speaker 1: with parents who value customer support and responsiveness and insurance

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Speaker 1: even at the expense of well expense. We think there

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Speaker 1: is wisdom there. On the other hand, I know you

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Speaker 1: guys are big fans of comparison shopping on insurance. Generally

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Speaker 1: I would be too, Yet the pursuit of the great

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Speaker 1: agent relationship I can rely on in the lurch. In

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Speaker 1: that pursuit, I feel conflicted. I guess this question comes

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Speaker 1: down to a classic Matt Joel frugal or cheap? Should

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Speaker 1: we shop around for homeowners and perhaps other insurance policies

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Speaker 1: before we are irrevocably sucked into the vortex of bundling inertia,

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Speaker 1: or should we go with the company we know and

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Speaker 1: trust perhaps a middleway. What do you think let us

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Speaker 1: know when you're coming to Connecticut, will be glad to

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Speaker 1: take you out for craft beer and famous New Haven

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Speaker 1: pizza alongside. Thanks guys, Danny, thanks for question man, Thanks

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Speaker 1: for the kind words pizza and beer. You don't really

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Speaker 1: have to twist our arms to make that happen next

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Speaker 1: time we're up in Connecticut. Well, holler, dude, I've ever

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Speaker 1: told you about the Broom View up in Asheville. It

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Speaker 1: was like it's an old movie theater but it was

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Speaker 1: a brewery, so they made their own beer there. You

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Speaker 1: could show up, you buy pizza, sit there in the

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Speaker 1: movie theater seats. There's only one screen, but you'd sit

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Speaker 1: there at pizza beer in a movie. It's so good.

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Speaker 1: I mean, I'm in my favorite things to do when

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Speaker 1: I live in Nashville, understandably, So uh, I want to

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Speaker 1: say to congrats to Danny. By the way, I'm buying

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Speaker 1: buying your first home. Um, and I feel like his

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Speaker 1: question too, is so great. It's it's so well worth

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Speaker 1: dissecting because solid customer service and maybe like a dedicated,

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Speaker 1: reliable agent, those things are like really helpful in the

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Speaker 1: event that you do have to file an insurance claim,

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Speaker 1: and I think they should be taken into account when

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Speaker 1: you're shopping for your insurance provider. Uh So, Matt, like, I,

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Speaker 1: let's kind of talk about how you incorporate that into

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Speaker 1: your decision making process totally, and I agree this is

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Speaker 1: a total frugal versus cheap question, right, Like you could

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Speaker 1: certainly go with an insurance company where the month leapers

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Speaker 1: aren't all that rough, you know, but then that sinks

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Speaker 1: when you really need them, right when when you're in

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Speaker 1: the lurch. Like Danny mentioned, let me quickly bring it

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Speaker 1: back to pizza. I feel like there's a pizza so

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Speaker 1: cheap that I would need it right Like it brings

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Speaker 1: it back to my college days, but little Caesars. I

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Speaker 1: would eat the totinos frozen pizzas or whatever, and I'm

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Speaker 1: like five for five for five or something like that.

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Speaker 1: It wasn't so bad. My mom used to make fun

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Speaker 1: of me, and understandably so. But now I wouldn't be

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Speaker 1: caught dead eating those pieces, Like I I'm just my

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Speaker 1: taste places have evolved somewhat and I'm like just not

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Speaker 1: gonna do that anymore. But I think the same thing

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Speaker 1: can be true, Like what you're saying, with insurance, there

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Speaker 1: is an insurance product and a customer service level that

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Speaker 1: is so bad that it's it's you're just not willing

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Speaker 1: to purchase it. Yeah, not just customer service, right, but

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Speaker 1: you could also offer less coverage than you would need

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Speaker 1: in order to save money, and that would definitely be cheap.

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Speaker 1: So when you are shopping around, we believe that everyone

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Speaker 1: out there should not only weigh the quote that you get,

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Speaker 1: but also how that ensure stacks up when it comes

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Speaker 1: to customer service, specifically UH and paying claims as well. Yeah. Yeah.

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Speaker 1: Consumer Reports puts out a car and home owners insurance

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Speaker 1: rating list every year, and so does JD Power, And

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Speaker 1: then those are two really good places to kind of

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Speaker 1: look and check and see, well, how does my insure

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Speaker 1: stack up? How good are they? Um? And those ratings

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Speaker 1: can be helpful when you're making a decision. The helpfulness

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Speaker 1: levels of a specific agent can be a game changer too.

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Speaker 1: If you've got someone in your corner who's responsive and thorough, um,

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Speaker 1: that can weigh the scales too and be and be

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Speaker 1: a big help. And for example, matt u s a

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Speaker 1: a beat everyone every single year and pretty much all

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Speaker 1: these ranking Systems, JD Power Consumer Reports. Everybody seems to

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Speaker 1: love USA, the customer service, the claims responsiveness that they provide. However,

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Speaker 1: they're not the cheapest one out there. They're they're not

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Speaker 1: the cheapest one out there. But anybody who you ask

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Speaker 1: who has USA, they're gonna say it's worth it, right

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Speaker 1: because they're just the head and shoulders above everybody else.

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Speaker 1: So if you are eligible to get insurance through US

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Speaker 1: A A and the rate is even mildly competitive, it's

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Speaker 1: probably worth getting your home and auto policies there. That's

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Speaker 1: how good of a job they do. But let's say

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Speaker 1: you haven't served in the military nor has a close

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Speaker 1: family member, You're not gonna be able to sign up

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Speaker 1: for USA coverage, and so you're gonna have to look elsewhere.

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Speaker 1: And so that means maybe just a little more research. Yeah,

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Speaker 1: with all the other insurance companies out there. Uh, there's

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Speaker 1: it's gonna be kind of a sliding scale, right when

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Speaker 1: it comes to costs versus customer service, customer satisfaction. You

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Speaker 1: gotta weigh the ratings and reviews alongside the cost of

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Speaker 1: the policy. And so consider, you know, having a rating floor,

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Speaker 1: maybe that you won't go go beneath, you know, no

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Speaker 1: matter how low the price goes, regardless of how low

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Speaker 1: the quote is. I'll actually admit that I am with

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Speaker 1: safe Co, who was recently purchased by Liberty Mutual, and

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Speaker 1: they score a really low seventy two on the Consumer

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Speaker 1: Reports ratings. But interestingly enough, they get a one out

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Speaker 1: of five stars on premiums. But my premiums are actually

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Speaker 1: really really low. They're the most competitive ones out there

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Speaker 1: when I was getting quotes. But at the same time,

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Speaker 1: I feel that I've got a great agent, so I

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Speaker 1: feel comfortable there even with that low overall rating. I'm

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Speaker 1: confident in their ability to make sure that my claim

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Speaker 1: gets paid out, and I'm also pretty confident in my

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Speaker 1: own ability to be the squeaky wheel right, Like a

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Speaker 1: lot of it kind of comes down to how much

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Speaker 1: time and energy you're willing to give it when you

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Speaker 1: do have to make a claim, when when it does

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Speaker 1: come time to actually use that insurance. I just want

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Speaker 1: to say, I'm also confident in your ability to be

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Speaker 1: a squeaky wee on my friend. Sometimes that's what it takes,

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Speaker 1: you know, And if you're not willing to put forth

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Speaker 1: that energy, then you probably do want to look towards

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Speaker 1: one of the companies that make it easy for you. Yeah,

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Speaker 1: I do think those ratings can be like a real,

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Speaker 1: really helpful guiding light, because I too, I am actually

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Speaker 1: with an insure who's not rated as highly as I

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Speaker 1: would hope, and it doesn't make me think, Man, now

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Speaker 1: maybe it's time for me to shop around again. Although

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Speaker 1: are we cheaping out? Like maybe we are? Maybe, But

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Speaker 1: I am in a similar similar position where I have

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Speaker 1: an agent that I feel like is really really good,

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Speaker 1: really really responsive, and so I'm happy where I'm at

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Speaker 1: right now, although it does make me think I should

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Speaker 1: shop around again soon, and and so I think that's

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Speaker 1: important for for everyone to continue to shop around for

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Speaker 1: insurance because it can make a difference of hundreds of

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Speaker 1: dollars maybe even more every single year and what you're paying.

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Speaker 1: And in particular, if you look up these ratings and

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Speaker 1: you're like, man, I ensure is not doing a very

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Speaker 1: good job when it comes down to it in these

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Speaker 1: national surveys, then there's an even bigger potential reason for

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Speaker 1: you to switch insurance companies. And I think too, it's

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Speaker 1: particularly important to shop when your circumstances changed. Let's say

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Speaker 1: you have a teenage driver, or your commute has just lessened,

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Speaker 1: which is the case for a lot of people now, right,

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Speaker 1: if you've ditched a vehicle, or you're driving any of

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Speaker 1: your vehicles less than seventy five hundred miles a year,

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Speaker 1: those are ways in which you can save on insurance costs,

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Speaker 1: and it makes even more sense to shop it. But

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Speaker 1: while you're shopping, make sure that you're weighing the customer

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Speaker 1: service and claims payment history of that ensure alongside the

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Speaker 1: price quote that you're getting before you make the move, because,

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Speaker 1: like Danny said, and we agree, a low price alone

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Speaker 1: isn't worth it, right if the service that you get

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Speaker 1: is awful, or if you're gonna it's gonna be pulling

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Speaker 1: teeth to actually get a claim paid in the event

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Speaker 1: that you have to file a homeowner's claim or you know,

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Speaker 1: you get into a car accident. Right, And you kind

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Speaker 1: of mentioned this jol when it comes to shopping your

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Speaker 1: insurance around. But but Danny mentioned kind of like that

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Speaker 1: long standing relationship with an agent, and it's worth pointing

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Speaker 1: out that you know, when you have a long standing

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Speaker 1: relationship with an agent, that typically means that you're gonna

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Speaker 1: be paying more because you don't get rewarded for being

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Speaker 1: a long time customer. You actually pay more. You don't

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Speaker 1: see your rates automatically go down year after year. And

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Speaker 1: so I think recognizing that for what it is, realizing

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Speaker 1: that it's not really about the relationship as much because

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Speaker 1: hopefully you're not having to use your insurance much. It's

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Speaker 1: more about convenience. So for us, I know that we

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Speaker 1: have stuck with the same guy for my business insurance

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Speaker 1: for photography. We have an inland marine policy, which is

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Speaker 1: what they call the policies for like your equipment and

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Speaker 1: gear things like that, thinking like a boat in your backyard.

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Speaker 1: Funny you say that because it actually was originally an

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Speaker 1: extension of marine policies because I guess maybe back in

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Speaker 1: the day when they're insuring cargo from like the East

387
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Speaker 1: Indies and stuff like that, or the West Indies, and

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Speaker 1: I don't know, I'm not very good with history. Um,

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Speaker 1: But for us, every year I would send in an

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Speaker 1: updated XCEL file with all the equipment that we had

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Speaker 1: on there because we'd buy different lenses, cameras, you know,

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Speaker 1: computer equipment, things like that. And for me, the convenience

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Speaker 1: of being able to just update that five an email

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Speaker 1: it to him without even say anything, like, without having

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Speaker 1: to make a phone call, without having to say anything

396
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Speaker 1: else in the email, he knew exactly what that was.

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Speaker 1: It was the updated list of all the equipment we

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Speaker 1: had to make sure that we were properly covered. For me,

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Speaker 1: it was worth it to not have to worry about

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Speaker 1: that every year. That was something I was able to automate.

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Speaker 1: Uh And in that case, I was willing to pay

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Speaker 1: for that convenience. Yeah. And I will say to Matt

403
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Speaker 1: last time I changed insurance companies, which I don't know

404
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Speaker 1: two and a half years ago. I really liked my

405
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Speaker 1: agent before that and I felt bad leaving, but it

406
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Speaker 1: was the right move for me to make. It's important

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Speaker 1: to realize this business it's not it's not necessarily personal,

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Speaker 1: right and and the cost does play a factor, a

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Speaker 1: major factor, not that the customer service doesn't as well,

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Speaker 1: though also too. I think it's important to mention um

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Speaker 1: to find other ways to lower the price of your insurance,

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Speaker 1: and there are lots of ways that you can do this.

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Speaker 1: It might and probably should mean having a higher deductible

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Speaker 1: and self ensuring more, having more money and savings. You

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Speaker 1: shall also pay your premiums six months or a year

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Speaker 1: at a time, it's gonna be cheaper to do it

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Speaker 1: that way. Ask about all the available discounts, and I mean,

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Speaker 1: like have your agent like run through everything that they offer.

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Speaker 1: I've done that, and like continue to save little bits

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Speaker 1: here and there by finding another available discount. And when

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Speaker 1: it comes to auto insurance, to just drive less, um

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Speaker 1: bride your bike more. If you can prove to your

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Speaker 1: insurance company that you drive fewer than seventy a year,

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Speaker 1: typically that is the tipping point at which you're gonna

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Speaker 1: pay less for insurance. And of course drive a cheaper car.

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Speaker 1: That's another way in which you can save money on insurance.

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Speaker 1: So there's all sorts of ways that you can lower

428
00:19:24,880 --> 00:19:27,400
Speaker 1: the cost on your own with the insurance company you're

429
00:19:27,440 --> 00:19:29,800
Speaker 1: you're currently with at the same time. That's right. So

430
00:19:29,880 --> 00:19:31,360
Speaker 1: Danny thinks so much for that question, and we hope

431
00:19:31,359 --> 00:19:33,440
Speaker 1: we got you pointed in the right direction, Joel. Our

432
00:19:33,480 --> 00:19:36,000
Speaker 1: next question has to do with getting a credit card

433
00:19:36,480 --> 00:19:39,359
Speaker 1: with little or with poor credit. Let's hear it. My

434
00:19:39,440 --> 00:19:43,080
Speaker 1: name is Sarah. I'm calling from Charlottesville, Virginia, and my

435
00:19:43,200 --> 00:19:48,840
Speaker 1: question is about secured credit cards. My daughter just got one,

436
00:19:49,440 --> 00:19:53,760
Speaker 1: her first credit card, and UM, I'm just wondering when

437
00:19:53,800 --> 00:19:58,080
Speaker 1: they release the deposit you've left with them when we

438
00:19:58,160 --> 00:20:01,840
Speaker 1: called customer service. They when you close the account and

439
00:20:01,880 --> 00:20:06,639
Speaker 1: have paid in full, But the website says that plus

440
00:20:07,119 --> 00:20:09,600
Speaker 1: after a couple of months or a few months of

441
00:20:09,680 --> 00:20:12,840
Speaker 1: good credit. So I'm wondering if you know how that

442
00:20:12,920 --> 00:20:17,760
Speaker 1: decision is made and how we can expedit it. Thank you, Sarah,

443
00:20:17,840 --> 00:20:20,239
Speaker 1: thanks so much for your question. And one, let's just

444
00:20:20,600 --> 00:20:24,000
Speaker 1: clear up what secured credit cards are, because I think

445
00:20:24,040 --> 00:20:25,320
Speaker 1: that there might be a question a lot of our

446
00:20:25,320 --> 00:20:28,560
Speaker 1: listeners have after hearing your question. So for folks out

447
00:20:28,600 --> 00:20:31,720
Speaker 1: there who have poor credit or no credit even at all,

448
00:20:32,359 --> 00:20:34,800
Speaker 1: it can be really tough to get a credit card. Obviously,

449
00:20:34,880 --> 00:20:38,199
Speaker 1: banks don't want to go out extending uh credit just

450
00:20:38,240 --> 00:20:40,439
Speaker 1: on a on a lark to somebody with no credit

451
00:20:40,520 --> 00:20:44,520
Speaker 1: history at all. But this is also unfortunate because responsibly

452
00:20:44,680 --> 00:20:47,640
Speaker 1: using a credit card is actually the easiest and fastest

453
00:20:47,640 --> 00:20:49,479
Speaker 1: way to build up your credit score, to build up

454
00:20:49,480 --> 00:20:51,120
Speaker 1: a solid credit score, right, kind of like a catch

455
00:20:51,160 --> 00:20:53,480
Speaker 1: twenty two, what comes first the chicken of the egg,

456
00:20:53,520 --> 00:20:56,640
Speaker 1: the credit card or the credit score, And like that's

457
00:20:56,640 --> 00:20:59,000
Speaker 1: where a secured credit card comes in. To save the

458
00:20:59,080 --> 00:21:02,920
Speaker 1: day and has historically been the place where people UH

459
00:21:02,960 --> 00:21:05,240
Speaker 1: in in that kind of situation with little or no

460
00:21:05,359 --> 00:21:08,000
Speaker 1: credit can turn um to actually start to build up

461
00:21:07,960 --> 00:21:10,280
Speaker 1: a reasonable credit history. That's right, and the the so

462
00:21:10,320 --> 00:21:12,240
Speaker 1: the way they will work. Secured credit cards work just

463
00:21:12,280 --> 00:21:15,320
Speaker 1: like a regular unsecured credit card, except that you've given

464
00:21:15,359 --> 00:21:19,159
Speaker 1: the credit card issuer deposit that they hold onto just

465
00:21:19,200 --> 00:21:21,760
Speaker 1: in case you don't make your payments like you're supposed to.

466
00:21:21,960 --> 00:21:24,320
Speaker 1: And so you use that secured card just like a

467
00:21:24,359 --> 00:21:26,679
Speaker 1: regular credit card, and you make purchases and then at

468
00:21:26,680 --> 00:21:28,680
Speaker 1: the end of the building cycle or or sooner hopefully

469
00:21:28,920 --> 00:21:31,800
Speaker 1: you pay these statement amounts uh and the entire time,

470
00:21:31,920 --> 00:21:34,760
Speaker 1: your deposit is still sitting there as collateral and is

471
00:21:34,760 --> 00:21:37,280
Speaker 1: only used if you default in as a payment. It's

472
00:21:37,320 --> 00:21:39,359
Speaker 1: it's it's not unlike a deposit that you put down

473
00:21:39,600 --> 00:21:42,080
Speaker 1: on a home or an apartment that you're running. It's like,

474
00:21:42,119 --> 00:21:44,080
Speaker 1: we're just gonna hang onto this money just in case

475
00:21:44,119 --> 00:21:46,080
Speaker 1: you don't do what you're supposed to write, if you

476
00:21:46,119 --> 00:21:48,600
Speaker 1: trash the place, we might take some money out of

477
00:21:48,600 --> 00:21:51,480
Speaker 1: your deposit. Right, So, if you don't pay all of

478
00:21:51,520 --> 00:21:53,520
Speaker 1: your payments that you're supposed to, some of that risk

479
00:21:53,640 --> 00:21:55,919
Speaker 1: is mitigated because they have that money, they've got that

480
00:21:55,960 --> 00:21:58,760
Speaker 1: deposit on hand. And traditionally, one of the best places

481
00:21:58,800 --> 00:22:01,080
Speaker 1: to go for a secured credit card has been a

482
00:22:01,119 --> 00:22:03,720
Speaker 1: credit union. That is like a really wonderful place for

483
00:22:03,760 --> 00:22:06,800
Speaker 1: a lot of folks to turn because credit unions are

484
00:22:06,840 --> 00:22:10,800
Speaker 1: not for profit. They are all about helping their members establish,

485
00:22:10,840 --> 00:22:13,520
Speaker 1: you know, a decent credit standing, and so yeah, if

486
00:22:13,560 --> 00:22:15,359
Speaker 1: you're in that position, that's a good place to turn.

487
00:22:15,680 --> 00:22:18,040
Speaker 1: Also to there are newer cards that can help people

488
00:22:18,160 --> 00:22:21,080
Speaker 1: with bad or non existent credit and you can avoid

489
00:22:21,119 --> 00:22:24,080
Speaker 1: this secure card route. Pedal Card in particular is the

490
00:22:24,080 --> 00:22:26,679
Speaker 1: one that I think of as offering the best alternative

491
00:22:26,680 --> 00:22:29,480
Speaker 1: option to a secured card where they're not actually checking

492
00:22:29,520 --> 00:22:32,160
Speaker 1: your credit when they extend you a credit card. Will

493
00:22:32,160 --> 00:22:33,680
Speaker 1: post a link to that one in the show notes.

494
00:22:33,720 --> 00:22:36,080
Speaker 1: So if you are or know somebody who has bad credit,

495
00:22:36,080 --> 00:22:37,840
Speaker 1: that's definitely a good place for them to turn in

496
00:22:37,920 --> 00:22:39,399
Speaker 1: order to try and get a credit card so they

497
00:22:39,400 --> 00:22:42,280
Speaker 1: can start to establish that credit history. Yeah, that's right.

498
00:22:42,400 --> 00:22:44,480
Speaker 1: And so Sarah, you know, when your daughter receives her

499
00:22:44,520 --> 00:22:48,359
Speaker 1: security deposit back will depend on the issuer of your

500
00:22:48,400 --> 00:22:51,159
Speaker 1: daughter's card, But no that she definitely will get that

501
00:22:51,200 --> 00:22:53,440
Speaker 1: to possit back if she always pays her balance and

502
00:22:53,520 --> 00:22:57,399
Speaker 1: full her Her card issuer may have mentioned a couple

503
00:22:57,400 --> 00:23:00,000
Speaker 1: of months of good credit, because her credit card is

504
00:23:00,000 --> 00:23:02,320
Speaker 1: not going to shoot up overnight. It does take some time.

505
00:23:02,880 --> 00:23:05,199
Speaker 1: Uh and and some banks will even sort of automatically

506
00:23:05,240 --> 00:23:08,280
Speaker 1: see if they can upgrade her to an unsecured card,

507
00:23:08,600 --> 00:23:11,280
Speaker 1: sometimes after eight to twelve months, because credit card companies

508
00:23:11,280 --> 00:23:14,560
Speaker 1: are always looking for new customers. But she will receive

509
00:23:14,640 --> 00:23:17,240
Speaker 1: back that deposit once her card is converted, either to

510
00:23:17,359 --> 00:23:21,199
Speaker 1: an unsecured card or once that account is closed and

511
00:23:21,200 --> 00:23:23,200
Speaker 1: the balance is paid in full. There you go. Secure

512
00:23:23,200 --> 00:23:25,159
Speaker 1: credit cards. They exist for a reason. They are helpful

513
00:23:25,160 --> 00:23:29,000
Speaker 1: to a large folks. They are a good tool. So yeah, Sarah,

514
00:23:29,000 --> 00:23:31,480
Speaker 1: hopefully that answered your question. Matt. We've got a couple

515
00:23:31,560 --> 00:23:34,600
Speaker 1: more questions to get to, including one about maximizing financial

516
00:23:34,600 --> 00:23:37,399
Speaker 1: aid for a kid that's going to college or multiple

517
00:23:37,480 --> 00:23:39,080
Speaker 1: kids that are going to college. We'll get to that

518
00:23:39,160 --> 00:23:50,320
Speaker 1: question and more right after this break. Al Right, we're

519
00:23:50,320 --> 00:23:52,480
Speaker 1: gonna get to a question about roth I ra A S.

520
00:23:52,800 --> 00:23:56,320
Speaker 1: But first let's hear that question about maximizing your financial

521
00:23:56,359 --> 00:24:02,920
Speaker 1: aid possibilities. Hi from Pittsburgh. UM, I just had a question.

522
00:24:03,480 --> 00:24:06,080
Speaker 1: My kids are heading off to college here. Well, the

523
00:24:06,119 --> 00:24:08,600
Speaker 1: first one goes next year, and we're going to have

524
00:24:08,720 --> 00:24:12,399
Speaker 1: three more in close succession over seven years. We are

525
00:24:12,440 --> 00:24:16,480
Speaker 1: in gear four of the money gears, but we're a

526
00:24:16,520 --> 00:24:20,000
Speaker 1: little hesitant to put money in a cash savings UM

527
00:24:20,080 --> 00:24:22,840
Speaker 1: for an emergency fund because again, our kids are going

528
00:24:22,880 --> 00:24:26,400
Speaker 1: to college and we don't want to negatively impact their

529
00:24:26,920 --> 00:24:31,600
Speaker 1: ability to get financial aid. Currently, we are already contributing

530
00:24:31,960 --> 00:24:35,280
Speaker 1: UM the max that is matched by our companies for

531
00:24:35,320 --> 00:24:38,200
Speaker 1: our four ow n K as well as maxing out

532
00:24:38,280 --> 00:24:42,040
Speaker 1: a roth IRA for my husband and I each, as

533
00:24:42,040 --> 00:24:45,720
Speaker 1: well as contributing up to to our h s A account.

534
00:24:47,080 --> 00:24:50,480
Speaker 1: So our question is where can we put this money

535
00:24:50,600 --> 00:24:53,120
Speaker 1: or should we just be concerned about maybe paying off

536
00:24:53,200 --> 00:24:56,880
Speaker 1: other debts like our own student loans, or if we

537
00:24:56,920 --> 00:25:01,000
Speaker 1: should consider using that money to pay for my UM

538
00:25:01,200 --> 00:25:04,560
Speaker 1: kids as upcoming college expenses. Thank you guys so much

539
00:25:04,640 --> 00:25:07,560
Speaker 1: for everything that you do, and have a nice day.

540
00:25:07,840 --> 00:25:10,720
Speaker 1: See thanks for your question, and Matt, there's so much

541
00:25:10,760 --> 00:25:14,320
Speaker 1: to cover here when it comes to financial aid possibilities

542
00:25:14,320 --> 00:25:16,280
Speaker 1: of college and and T I just wanted to recommend

543
00:25:16,280 --> 00:25:18,280
Speaker 1: that you check out episode one seventy if you haven't

544
00:25:18,320 --> 00:25:20,920
Speaker 1: listened to that one yet. We talked to Alicia Howard

545
00:25:21,240 --> 00:25:23,400
Speaker 1: and she had some awesome advice on lowering the cost

546
00:25:23,440 --> 00:25:26,439
Speaker 1: of college overall. And you're gonna need that sort of

547
00:25:26,480 --> 00:25:29,240
Speaker 1: advice with four kids going to college because that can

548
00:25:29,280 --> 00:25:31,920
Speaker 1: be really tough on the finances. And man, I loved

549
00:25:31,960 --> 00:25:34,560
Speaker 1: that conversation with Alicia. She just gave like a ton

550
00:25:35,240 --> 00:25:38,680
Speaker 1: of in depth help to parents out there of even

551
00:25:38,720 --> 00:25:41,240
Speaker 1: young kids like starting to think ahead about paying for college,

552
00:25:41,320 --> 00:25:44,120
Speaker 1: but especially in the situation Tis and I think that

553
00:25:44,119 --> 00:25:47,160
Speaker 1: that interview episode is going to be really really helpful. Yeah,

554
00:25:47,200 --> 00:25:49,080
Speaker 1: and Ta is just so day close to moving on

555
00:25:49,119 --> 00:25:51,320
Speaker 1: to Gear five, you know, because in her email she

556
00:25:51,359 --> 00:25:54,199
Speaker 1: actually mentioned too that she's got two months worth of

557
00:25:54,200 --> 00:25:56,960
Speaker 1: an emergency fund in Gear four is having three to

558
00:25:57,119 --> 00:25:59,760
Speaker 1: six months set aside there. But the thing is, man,

559
00:25:59,800 --> 00:26:03,000
Speaker 1: there is always nuanced when it comes to specific personal

560
00:26:03,000 --> 00:26:06,520
Speaker 1: finance issues that arise. Uh. And you know, Tia, you

561
00:26:06,560 --> 00:26:09,080
Speaker 1: are in one of those moments where you have to

562
00:26:09,160 --> 00:26:12,840
Speaker 1: pivot based on your specific circumstances. Uh. And so in

563
00:26:12,920 --> 00:26:15,479
Speaker 1: order to give your kids the best option of receiving

564
00:26:15,520 --> 00:26:17,960
Speaker 1: financial aid, you won't want to have a big chunk

565
00:26:18,000 --> 00:26:20,840
Speaker 1: of liquid savings because it could mean that they you know,

566
00:26:20,880 --> 00:26:23,560
Speaker 1: get less free money from a university. Again, Matt, this

567
00:26:23,640 --> 00:26:25,879
Speaker 1: is obviously just like a round number that I'm pulling

568
00:26:25,880 --> 00:26:27,600
Speaker 1: out of nowhere, but like it could be you know,

569
00:26:27,640 --> 00:26:30,439
Speaker 1: potentially ten thousand dollars per kid, and if there's four

570
00:26:30,520 --> 00:26:34,320
Speaker 1: kids there, that's in extra financial aid. If Tim makes

571
00:26:34,320 --> 00:26:36,200
Speaker 1: a couple of the right moves now right, well, yeah,

572
00:26:36,240 --> 00:26:37,919
Speaker 1: it's definitely a bigger decision based on the fact that

573
00:26:37,920 --> 00:26:40,080
Speaker 1: she's got multiple kids that are likely to go to college. Right,

574
00:26:40,160 --> 00:26:42,359
Speaker 1: one kid, it's still important, but it's kind of less important.

575
00:26:42,359 --> 00:26:43,960
Speaker 1: It's like, you know, it doesn't really matter. It's just

576
00:26:44,000 --> 00:26:46,600
Speaker 1: one kid, But if it's like foreign succession fourfold, it's

577
00:26:46,600 --> 00:26:48,480
Speaker 1: a big deal. You better get it right. So yeah,

578
00:26:48,480 --> 00:26:50,439
Speaker 1: I think let's talk about a couple of the biggest

579
00:26:50,440 --> 00:26:54,000
Speaker 1: ways that Tia can help her situation and uh and

580
00:26:54,040 --> 00:26:55,680
Speaker 1: make it more likely that there's going to be more

581
00:26:55,720 --> 00:26:59,040
Speaker 1: financial aid coming her kid's way. And the biggest way

582
00:26:59,040 --> 00:27:01,400
Speaker 1: to help your kids it more financial as to fill

583
00:27:01,400 --> 00:27:03,520
Speaker 1: out the FAFTSA and to do that early, to not

584
00:27:03,600 --> 00:27:05,960
Speaker 1: wait too long. That was one of the first things

585
00:27:06,000 --> 00:27:08,520
Speaker 1: I think Alicia mentioned in that interview to Matt was

586
00:27:08,560 --> 00:27:10,600
Speaker 1: that like, the earlier you fell at the fast side,

587
00:27:10,600 --> 00:27:12,520
Speaker 1: the more A that's waiting there for you. The longer

588
00:27:12,560 --> 00:27:14,919
Speaker 1: you wait, the more colleges have already kind of promised

589
00:27:14,920 --> 00:27:17,080
Speaker 1: it to other students. So it literally the funding runs

590
00:27:17,080 --> 00:27:19,320
Speaker 1: out right. So if you get in there earlier, you

591
00:27:19,400 --> 00:27:22,840
Speaker 1: gotta get first steps exactly, and so don't forsake that.

592
00:27:22,920 --> 00:27:25,280
Speaker 1: Make sure the FASTA is early on your to do list.

593
00:27:25,560 --> 00:27:27,240
Speaker 1: But then you want to keep working on those money gears.

594
00:27:27,280 --> 00:27:30,240
Speaker 1: Make sure that you're actually maxing out money that you

595
00:27:30,320 --> 00:27:33,960
Speaker 1: have invested in retirement accounts, and usually that gets postponed

596
00:27:34,000 --> 00:27:37,720
Speaker 1: just a little bit later in your finances. But considering

597
00:27:37,800 --> 00:27:40,399
Speaker 1: your specific situation, Tea, I think it makes sense to

598
00:27:40,480 --> 00:27:43,280
Speaker 1: move more quickly in that direction. Contributing to a four

599
00:27:43,320 --> 00:27:44,880
Speaker 1: oh one k A RATH and an h s A

600
00:27:44,880 --> 00:27:47,719
Speaker 1: at the same time as awesome, So congrats on prioritizing that,

601
00:27:48,000 --> 00:27:50,679
Speaker 1: But now it's important to max those out. This is

602
00:27:50,680 --> 00:27:52,640
Speaker 1: a good idea, of course, because of the tax benefits

603
00:27:52,640 --> 00:27:55,800
Speaker 1: that you receive, but also any assets that you put

604
00:27:55,840 --> 00:27:58,879
Speaker 1: into a retirement account like that, they don't get count

605
00:27:59,040 --> 00:28:01,520
Speaker 1: when financial A is being determined. So I think you

606
00:28:01,560 --> 00:28:03,399
Speaker 1: said you were getting up to the match in your

607
00:28:03,400 --> 00:28:05,920
Speaker 1: four O one K. If you can dial that up

608
00:28:05,960 --> 00:28:08,760
Speaker 1: and soak up um some of that extra money that's

609
00:28:08,880 --> 00:28:10,480
Speaker 1: in your life, well, it's going to be great for

610
00:28:10,480 --> 00:28:12,719
Speaker 1: your retirement savings and also at the same time it's

611
00:28:12,760 --> 00:28:15,439
Speaker 1: going to be great for your eligibility for some of

612
00:28:15,440 --> 00:28:17,880
Speaker 1: the financial aid. That's right. And then Tia, next you'll

613
00:28:17,880 --> 00:28:19,840
Speaker 1: move on to money. Get your number six and pay

614
00:28:19,840 --> 00:28:22,080
Speaker 1: off any debts that you might have in your name.

615
00:28:22,119 --> 00:28:24,720
Speaker 1: You mentioned student loans, Now is the time to I

616
00:28:24,720 --> 00:28:26,960
Speaker 1: think completely wipe those out. Just like you said, any

617
00:28:27,040 --> 00:28:29,640
Speaker 1: cash that you have sitting around counts against your kids

618
00:28:29,720 --> 00:28:33,160
Speaker 1: ability to receive financial aid, but your outstanding debts are

619
00:28:33,280 --> 00:28:37,280
Speaker 1: not being taken into consideration. And so pay off any

620
00:28:37,320 --> 00:28:39,880
Speaker 1: other debts that you may have with that cash to

621
00:28:40,080 --> 00:28:43,680
Speaker 1: decrease any monthly payments while maintaining your ability to qualify

622
00:28:43,800 --> 00:28:46,800
Speaker 1: for any financial help. Yeah, basically those are the two

623
00:28:46,840 --> 00:28:48,960
Speaker 1: biggest um legal things that you can do right is

624
00:28:49,040 --> 00:28:51,200
Speaker 1: to invest more of your money and then to use

625
00:28:51,200 --> 00:28:53,040
Speaker 1: the cash on hand to paid on debts that will

626
00:28:53,080 --> 00:28:56,200
Speaker 1: improve your position when it comes to financial aid possibility.

627
00:28:56,240 --> 00:28:58,280
Speaker 1: So Tia, best of luck to you, Best of luck

628
00:28:58,320 --> 00:29:01,200
Speaker 1: to your four kids as they start attending university and

629
00:29:01,240 --> 00:29:05,520
Speaker 1: hopefully taking those moves means there's more money available for

630
00:29:05,560 --> 00:29:07,960
Speaker 1: your kids from the financial late office. All right, Matt,

631
00:29:08,040 --> 00:29:10,000
Speaker 1: let's get to you our last question for the day.

632
00:29:10,240 --> 00:29:13,360
Speaker 1: This one is about opening up a roth ira but

633
00:29:13,600 --> 00:29:17,440
Speaker 1: for last year. Hey guys, this is Riker from Wyoming.

634
00:29:17,720 --> 00:29:21,280
Speaker 1: I'm a medical resident in my final year of residency.

635
00:29:21,320 --> 00:29:24,920
Speaker 1: I have a question about a roth ira. A I

636
00:29:24,960 --> 00:29:28,440
Speaker 1: opened up a roth ira after the first of year.

637
00:29:28,880 --> 00:29:33,320
Speaker 1: In the rath that I opened up was I was

638
00:29:33,360 --> 00:29:38,080
Speaker 1: hoping to max that out prior to ending residency. So

639
00:29:38,160 --> 00:29:40,800
Speaker 1: my income will allow me to max it out and

640
00:29:40,800 --> 00:29:44,200
Speaker 1: this maybe my last opportunity. So my question is, if

641
00:29:44,240 --> 00:29:47,360
Speaker 1: you open the wroth ira after the first of the year,

642
00:29:47,800 --> 00:29:51,760
Speaker 1: are you still allowed to contribute to the prior year

643
00:29:52,280 --> 00:29:55,560
Speaker 1: roth ira even though it was opened after the first

644
00:29:55,600 --> 00:29:59,080
Speaker 1: of the year, and if I max it out before

645
00:29:59,360 --> 00:30:02,120
Speaker 1: the tax fi a deadline in April. Thank you guys,

646
00:30:02,640 --> 00:30:04,240
Speaker 1: all right right here, thanks so much for your question,

647
00:30:04,320 --> 00:30:07,320
Speaker 1: and short answer is yes, you can still open a

648
00:30:07,400 --> 00:30:09,800
Speaker 1: roth ira and fund it for last year, even if

649
00:30:09,840 --> 00:30:12,640
Speaker 1: you filed your taxes already. Uh, you know. Congrats to

650
00:30:12,680 --> 00:30:15,680
Speaker 1: all those type a personalities out there. You can still

651
00:30:15,800 --> 00:30:18,640
Speaker 1: open and contribute to a roth ira for last year.

652
00:30:18,920 --> 00:30:20,680
Speaker 1: And you know, some people might be wondering, like why

653
00:30:20,760 --> 00:30:23,560
Speaker 1: would I contribute to my wrath for when I could

654
00:30:23,560 --> 00:30:27,360
Speaker 1: start making one contributions? Uh. Well, you might, you know,

655
00:30:27,400 --> 00:30:29,400
Speaker 1: come into some extra money this year. Maybe you might

656
00:30:29,440 --> 00:30:31,520
Speaker 1: get a sweet bonus, uh, and you may not know

657
00:30:31,560 --> 00:30:34,400
Speaker 1: what to do with that money. And so it's always

658
00:30:34,760 --> 00:30:37,400
Speaker 1: helpful to put money towards the prior year's ira A

659
00:30:37,560 --> 00:30:40,640
Speaker 1: whenever you can, because it gives you more options in

660
00:30:40,680 --> 00:30:43,680
Speaker 1: case you stumble into the opportunity to invest even more

661
00:30:43,680 --> 00:30:46,640
Speaker 1: money down the road. I love stumbling into the opportunity

662
00:30:46,680 --> 00:30:49,480
Speaker 1: to invest absolutely, and that's how we roll around here. Yeah,

663
00:30:49,680 --> 00:30:52,200
Speaker 1: you never know, right of course, in Riker's case, like

664
00:30:52,280 --> 00:30:56,560
Speaker 1: he might not be able to contribute to a roth irae,

665
00:30:56,720 --> 00:30:59,520
Speaker 1: he's got to do it for right, And that's because

666
00:30:59,520 --> 00:31:02,840
Speaker 1: of the limits that exist when we're talking about roth iras.

667
00:31:03,400 --> 00:31:06,400
Speaker 1: If your a g I rises above twenty five thousand

668
00:31:06,400 --> 00:31:09,000
Speaker 1: dollars as a single individual and a hundred and ninety

669
00:31:09,000 --> 00:31:11,280
Speaker 1: eight thousand dollars as a married couple, you won't be

670
00:31:11,280 --> 00:31:13,520
Speaker 1: able to contribute to the full six or twelve thousand

671
00:31:13,560 --> 00:31:16,560
Speaker 1: dollars to your roth iras this year, and so yeah,

672
00:31:16,560 --> 00:31:18,920
Speaker 1: that just puts an even higher priority on um. You know,

673
00:31:19,000 --> 00:31:20,959
Speaker 1: maybe at the end of this year Riker will not

674
00:31:21,000 --> 00:31:23,200
Speaker 1: have made more than that amount and he'll be able

675
00:31:23,200 --> 00:31:25,920
Speaker 1: to contribute for one as well. But make hay while

676
00:31:25,920 --> 00:31:27,840
Speaker 1: the sun shines here and put your money in your

677
00:31:27,840 --> 00:31:30,280
Speaker 1: wrath while you can. So yeah, that is a reason

678
00:31:30,600 --> 00:31:33,920
Speaker 1: to continue to contribute for last year's as long as

679
00:31:33,960 --> 00:31:35,960
Speaker 1: you can. And you can do that again up until

680
00:31:36,360 --> 00:31:39,680
Speaker 1: April fifteen. Even if you've already fouled your taxes, you

681
00:31:39,720 --> 00:31:43,480
Speaker 1: can still contribute to your wrath for last year, and

682
00:31:43,520 --> 00:31:45,320
Speaker 1: so make sure you stuff as much money as you

683
00:31:45,360 --> 00:31:48,800
Speaker 1: can into last year's wrath before you start putting money

684
00:31:48,800 --> 00:31:51,640
Speaker 1: into your rath. Yeah. This is actually the position that

685
00:31:51,720 --> 00:31:54,320
Speaker 1: Kate and I found ourselves in about this time last year.

686
00:31:54,360 --> 00:31:57,400
Speaker 1: And so so last year in twenty we actually hadn't

687
00:31:57,440 --> 00:32:00,440
Speaker 1: contributed yet to our twenty nineteen roth ira. Twenty nineteen

688
00:32:00,480 --> 00:32:02,840
Speaker 1: was kind of not so great year for us financially.

689
00:32:02,960 --> 00:32:05,280
Speaker 1: It wasn't terrible by any means, but we just hadn't

690
00:32:05,320 --> 00:32:07,080
Speaker 1: put a side of money, you know, into our wraths.

691
00:32:07,520 --> 00:32:09,960
Speaker 1: But then spring of rolled around it looked like we

692
00:32:10,000 --> 00:32:12,040
Speaker 1: were going to be in a much stronger position financially

693
00:32:12,520 --> 00:32:15,280
Speaker 1: last year. That dude, coupled with effect that the stock

694
00:32:15,320 --> 00:32:17,720
Speaker 1: market went on sale, we were able to fully fund

695
00:32:17,760 --> 00:32:20,320
Speaker 1: the previous years roth ira So we maxed out our

696
00:32:21,200 --> 00:32:23,719
Speaker 1: contributions as well as but we were able to do

697
00:32:23,760 --> 00:32:26,800
Speaker 1: that because the tax filing deadlines had not yet arrived.

698
00:32:26,840 --> 00:32:28,680
Speaker 1: So record, as long as you do that, you will

699
00:32:28,720 --> 00:32:30,920
Speaker 1: be set. Yeah. I we'll say too when you make

700
00:32:31,120 --> 00:32:33,760
Speaker 1: above that amount of money, like when you are no

701
00:32:33,840 --> 00:32:36,160
Speaker 1: longer eligible to contribute to a wrath, I think some

702
00:32:36,200 --> 00:32:38,959
Speaker 1: people get bummed out, and understandably so, Like roth iras

703
00:32:38,960 --> 00:32:41,680
Speaker 1: are pretty cool. We really like them. But also to um,

704
00:32:41,720 --> 00:32:44,720
Speaker 1: that's kind of cast or celebration when you make a

705
00:32:45,240 --> 00:32:47,440
Speaker 1: problem to have for sure, Yeah, when you're gonna come

706
00:32:47,560 --> 00:32:50,000
Speaker 1: has reached that level, you know you're doing great. Yeah,

707
00:32:50,000 --> 00:32:53,160
Speaker 1: So Ricord, congrats in advance of that. If you think

708
00:32:53,160 --> 00:32:55,800
Speaker 1: that you're going to be ineligible based on income, that's

709
00:32:55,800 --> 00:32:57,440
Speaker 1: a great place to be in no doubt. All right, Matt,

710
00:32:57,480 --> 00:32:59,120
Speaker 1: let's get back to the beer. Today. On the show,

711
00:32:59,120 --> 00:33:02,360
Speaker 1: we drank see being double By and Derby Brewing. This

712
00:33:02,520 --> 00:33:04,560
Speaker 1: was another beer my little sister tossed our way. What

713
00:33:04,600 --> 00:33:06,360
Speaker 1: were thoughts on this one? Man? Yeah again, this is

714
00:33:06,360 --> 00:33:08,960
Speaker 1: a double dry hopped double I p A. And the

715
00:33:08,960 --> 00:33:10,440
Speaker 1: first thing I noticed when I cracked so I cracked

716
00:33:10,480 --> 00:33:13,360
Speaker 1: it open uppoored it and the label it's black and purple.

717
00:33:13,960 --> 00:33:15,480
Speaker 1: And I don't know if it's because it's purple, but

718
00:33:15,640 --> 00:33:17,680
Speaker 1: I swore when I cracked it, I could smell berries,

719
00:33:18,400 --> 00:33:20,000
Speaker 1: like if it made me think of like strawberry or

720
00:33:20,080 --> 00:33:24,240
Speaker 1: chairy or something, but it didn't taste that way it is.

721
00:33:24,480 --> 00:33:26,200
Speaker 1: I mean, it was a great I p A. No

722
00:33:26,320 --> 00:33:28,280
Speaker 1: berries were harmed in the making of this, Oh yeah,

723
00:33:28,360 --> 00:33:30,640
Speaker 1: not at all. But it's funny how a label can

724
00:33:30,760 --> 00:33:32,760
Speaker 1: have an impact on the perception of the beer, at

725
00:33:32,800 --> 00:33:34,800
Speaker 1: least maybe before you taste it, but even after you

726
00:33:34,800 --> 00:33:37,120
Speaker 1: taste it. I think sometimes depending on the label the

727
00:33:37,160 --> 00:33:38,960
Speaker 1: colors that they use, it can make you think one

728
00:33:38,960 --> 00:33:41,760
Speaker 1: way versus maybe how it is in reality. But this

729
00:33:41,800 --> 00:33:43,720
Speaker 1: one was really good. It was. It was a double

730
00:33:43,760 --> 00:33:45,000
Speaker 1: I p A. But it wasn't kind of one of

731
00:33:45,040 --> 00:33:47,360
Speaker 1: these really sweet New England saw I p A s.

732
00:33:47,600 --> 00:33:49,880
Speaker 1: It was a little less sweet. It led to some

733
00:33:49,960 --> 00:33:52,040
Speaker 1: kind of cleaner drinking when, as you know, as it

734
00:33:52,040 --> 00:33:54,160
Speaker 1: pertains to these double dry hopped I p A s.

735
00:33:54,200 --> 00:33:56,040
Speaker 1: But uh, I really enjoyed it, man, how about you. Yeah,

736
00:33:56,040 --> 00:33:58,240
Speaker 1: it was kind of like a moderate West coast IP.

737
00:33:58,360 --> 00:34:00,560
Speaker 1: I'd say maybe it's more like a middle country I

738
00:34:00,680 --> 00:34:03,560
Speaker 1: p A. I don't know, like I'm guessing this tastes

739
00:34:03,560 --> 00:34:05,880
Speaker 1: like this is an I p A from Illinois. It does.

740
00:34:05,960 --> 00:34:07,080
Speaker 1: It does kind of taste like some of the I

741
00:34:07,120 --> 00:34:10,879
Speaker 1: pas that I've had. They're not like bitter, harsh California

742
00:34:10,920 --> 00:34:13,560
Speaker 1: West Coast right there. They're just kind of like more reserved.

743
00:34:13,640 --> 00:34:16,200
Speaker 1: They do have, you know, a lot of hot flavor

744
00:34:16,200 --> 00:34:19,080
Speaker 1: coming through some of the bitterness, some of the maltiness.

745
00:34:19,120 --> 00:34:21,359
Speaker 1: Just really well balanced really when it comes down to it.

746
00:34:21,560 --> 00:34:24,440
Speaker 1: So yeah, I would classify this as like traditional American

747
00:34:24,520 --> 00:34:26,359
Speaker 1: I p A. And I think he and Derby pulled

748
00:34:26,360 --> 00:34:27,799
Speaker 1: it off pretty well. Man. Yeah, it was pretty good.

749
00:34:28,120 --> 00:34:29,759
Speaker 1: Nice man. Yeah, So I'm glad that you and I

750
00:34:29,800 --> 00:34:32,600
Speaker 1: got to share another local Atlanta craft beer here on

751
00:34:32,600 --> 00:34:35,440
Speaker 1: the show. And thanks to your sister aunt Salsal again

752
00:34:35,520 --> 00:34:37,600
Speaker 1: for donating this one to the show. But Joe, that's

753
00:34:37,640 --> 00:34:39,600
Speaker 1: gonna be it for this episode. We will make sure

754
00:34:39,640 --> 00:34:42,600
Speaker 1: to leave any links any resources that we mentioned during

755
00:34:42,600 --> 00:34:44,520
Speaker 1: this episode up on our show notes on our website

756
00:34:44,560 --> 00:34:46,680
Speaker 1: at how to money dot com. Yeah, and if you

757
00:34:46,880 --> 00:34:48,960
Speaker 1: have a money question, well, you can hop into our

758
00:34:48,960 --> 00:34:52,200
Speaker 1: Facebook group and you can ask uh fellow listeners what

759
00:34:52,239 --> 00:34:54,600
Speaker 1: they think of your money predicament or of your money question,

760
00:34:54,680 --> 00:34:57,520
Speaker 1: and there's all sorts of good conversations happening in there.

761
00:34:57,600 --> 00:34:59,560
Speaker 1: Just go to Facebook dot com type how the Money

762
00:34:59,600 --> 00:35:01,920
Speaker 1: in the search bar. You'll find it also too. If

763
00:35:01,920 --> 00:35:04,120
Speaker 1: you prefer Matt and I to answer your question on

764
00:35:04,200 --> 00:35:06,160
Speaker 1: the podcast, we would love that. Just go to how

765
00:35:06,160 --> 00:35:08,680
Speaker 1: to money dot com slash ask again. It takes just

766
00:35:08,719 --> 00:35:10,839
Speaker 1: a minute to submit your question and hopefully we'll take

767
00:35:10,840 --> 00:35:13,200
Speaker 1: it on an upcoming episode. But that's going to do

768
00:35:13,280 --> 00:35:16,080
Speaker 1: it for this episode, Matt. Until next time, Best Friends Out,

769
00:35:16,080 --> 00:35:17,160
Speaker 1: Best Friends Out,