1 00:00:00,040 --> 00:00:02,680 Speaker 1: Welcome to How to Money. I'm Joel and I'm not 2 00:00:02,960 --> 00:00:06,320 Speaker 1: and today we're talking about how retirement investing is simpler 3 00:00:06,360 --> 00:00:21,200 Speaker 1: than you think. Joel. How's it gone, good Man, I 4 00:00:21,200 --> 00:00:23,520 Speaker 1: gotta fill you in on something before we get in 5 00:00:23,640 --> 00:00:25,480 Speaker 1: any further. If we get started. Yes, So there's this 6 00:00:25,480 --> 00:00:28,560 Speaker 1: funny story. We're eating dinner tonight as a family with 7 00:00:28,600 --> 00:00:30,440 Speaker 1: my wife and my two girls, four and a half 8 00:00:30,440 --> 00:00:31,960 Speaker 1: and two and a half. And my four and a 9 00:00:32,000 --> 00:00:35,480 Speaker 1: half year old said, I want a tattoo. Mommy, when 10 00:00:35,479 --> 00:00:40,680 Speaker 1: can I get a tattoo? And mommy responded, when you're eighteen? Uh, 11 00:00:40,920 --> 00:00:43,400 Speaker 1: but what if? Good answering, what would you want to 12 00:00:43,440 --> 00:00:45,480 Speaker 1: get if you get a tattoo now? And my two 13 00:00:45,520 --> 00:00:49,680 Speaker 1: and a half year old guess what she said, No clue, poop. 14 00:00:52,560 --> 00:00:55,000 Speaker 1: This is pretty awesome. And she was like, that reinforces 15 00:00:55,040 --> 00:00:57,480 Speaker 1: the fact that you do not have the decision making 16 00:00:57,480 --> 00:01:00,080 Speaker 1: skills to get a tattoo. Oh, it's about that. That 17 00:01:00,080 --> 00:01:02,200 Speaker 1: was pretty funny, man. Just let her do it. See 18 00:01:02,200 --> 00:01:04,520 Speaker 1: what happens. Then the poop emoji on her arm through 19 00:01:04,560 --> 00:01:07,119 Speaker 1: the rest of her life. So all of a sudden, 20 00:01:07,120 --> 00:01:10,160 Speaker 1: he got way cute in my mind, Like it's got 21 00:01:10,160 --> 00:01:12,280 Speaker 1: like a little smiley face on it. Yeah, that's that's 22 00:01:12,319 --> 00:01:13,920 Speaker 1: way better. This wouldn't be all that bad. Maybe I'll 23 00:01:13,920 --> 00:01:16,760 Speaker 1: take her out this weekend. We'll get tatted up. People 24 00:01:16,760 --> 00:01:18,800 Speaker 1: say tatted up still, I don't know, but I get 25 00:01:18,840 --> 00:01:22,039 Speaker 1: tatted it up. So Joel are buddy? Tim texted you 26 00:01:22,080 --> 00:01:26,600 Speaker 1: and I and said, stop whatever you're doing and listen 27 00:01:26,600 --> 00:01:29,600 Speaker 1: to your podcast at halftime. So I took my hands 28 00:01:29,640 --> 00:01:31,039 Speaker 1: off the wheel and I slammed into the car in 29 00:01:31,040 --> 00:01:35,280 Speaker 1: front of me, and I immediately took his followed his directions. 30 00:01:35,680 --> 00:01:37,800 Speaker 1: So he said, listen to our last episode that we 31 00:01:37,920 --> 00:01:40,479 Speaker 1: launched about how to get a deal on craft beer. 32 00:01:40,760 --> 00:01:43,160 Speaker 1: He said, listen to it at half speed. I'll be 33 00:01:43,200 --> 00:01:44,679 Speaker 1: honest when he as soon as I saw that text, 34 00:01:44,720 --> 00:01:46,360 Speaker 1: I was kind of like freaking out, like, oh my gosh, 35 00:01:46,440 --> 00:01:48,800 Speaker 1: what did we say accidentally that you can only hear, 36 00:01:49,120 --> 00:01:50,640 Speaker 1: you know, in slow motion. It's like one of those 37 00:01:50,640 --> 00:01:53,240 Speaker 1: Disney movie things can play backwards and sink it up 38 00:01:53,280 --> 00:01:56,080 Speaker 1: to like Wizard of Us or like there's falic symbols 39 00:01:56,160 --> 00:01:59,280 Speaker 1: or something and the Little Mermaids and the flowers like, 40 00:01:59,600 --> 00:02:01,360 Speaker 1: but we had to play this for everyone, So here 41 00:02:01,400 --> 00:02:04,000 Speaker 1: goes here's what we sound like at half speed, and 42 00:02:04,400 --> 00:02:07,680 Speaker 1: especially considering we were talking about getting a deal on 43 00:02:07,760 --> 00:02:10,360 Speaker 1: craft beer last week, it makes it sound even funnier. 44 00:02:10,400 --> 00:02:13,840 Speaker 1: So take a listen. Yeah, I am glad that we 45 00:02:13,840 --> 00:02:17,720 Speaker 1: were talking about listening. Man. Beer is a key part 46 00:02:17,760 --> 00:02:21,160 Speaker 1: of what we do, so I think it's about time 47 00:02:21,280 --> 00:02:27,560 Speaker 1: that we dedicate an entire episode to craft beer. I agree. 48 00:02:28,320 --> 00:02:32,079 Speaker 1: So most episodes you don't have to be a craft 49 00:02:32,400 --> 00:02:40,680 Speaker 1: Beernato to enjoy this podcast, and most episodes will be 50 00:02:40,720 --> 00:02:46,520 Speaker 1: talking about money in some way. Former fashion and today's 51 00:02:46,600 --> 00:02:49,840 Speaker 1: note different. So I feel like we could listen to 52 00:02:49,880 --> 00:02:52,960 Speaker 1: the whole thing and we probably want to go back 53 00:02:52,960 --> 00:02:54,519 Speaker 1: to Honestly, I want to go back and listen to 54 00:02:54,600 --> 00:02:56,639 Speaker 1: all of them at has speed now if only had 55 00:02:56,639 --> 00:02:58,799 Speaker 1: the time. Yeah, I know this good stuff. So it 56 00:02:58,840 --> 00:03:03,760 Speaker 1: sounds like we're drunk and uh drunk slash high. I 57 00:03:03,800 --> 00:03:06,000 Speaker 1: don't know which which is worse. Like that that seventy 58 00:03:06,040 --> 00:03:07,960 Speaker 1: showed the little circle that they used to do, you know, 59 00:03:08,040 --> 00:03:09,839 Speaker 1: and the camera will go around the circle and film 60 00:03:09,919 --> 00:03:11,640 Speaker 1: them that. It's kind of what it feels like listening 61 00:03:11,680 --> 00:03:13,760 Speaker 1: to us on half speed. Did you ever watch that, Sonny? 62 00:03:13,800 --> 00:03:15,359 Speaker 1: I mean I guess you did. You watched Yeah, dude, 63 00:03:15,400 --> 00:03:16,839 Speaker 1: that was one of the best comedies of all time. 64 00:03:16,880 --> 00:03:18,880 Speaker 1: I think. Yeah, Kit was really into that. I never 65 00:03:18,919 --> 00:03:20,680 Speaker 1: I never got into it. All right, So let's get 66 00:03:20,720 --> 00:03:25,239 Speaker 1: to today's beer. We are drinking not one, but two 67 00:03:25,280 --> 00:03:30,800 Speaker 1: beers tonight. So Ironmonger Brewing out of Marietta, George just 68 00:03:30,840 --> 00:03:32,799 Speaker 1: they're just up the street from where we live. Um 69 00:03:32,880 --> 00:03:34,600 Speaker 1: they kindly. I stopped in there the other day on 70 00:03:34,639 --> 00:03:37,240 Speaker 1: my way to my parents house, like sid heard awesome things, 71 00:03:37,240 --> 00:03:39,160 Speaker 1: and my brother in law had actually, um let me 72 00:03:39,200 --> 00:03:40,640 Speaker 1: have a little bit of taste of one of their 73 00:03:40,680 --> 00:03:44,240 Speaker 1: I pas and it was so ridiculously delicious. So I 74 00:03:44,280 --> 00:03:45,720 Speaker 1: was stopping by to get some and I ended up 75 00:03:45,760 --> 00:03:49,240 Speaker 1: talking to the owner there and the super cool guy, 76 00:03:49,560 --> 00:03:53,720 Speaker 1: and he said, dude, have some and drinking on the podcast. 77 00:03:54,120 --> 00:03:58,280 Speaker 1: So we are featuring the Ironmonger Anville double I P 78 00:03:58,400 --> 00:04:02,680 Speaker 1: A and their Damascus single I PA tonight. Nice. Oh man. 79 00:04:02,720 --> 00:04:05,080 Speaker 1: I love doing the uh like kind of a sidewy 80 00:04:05,120 --> 00:04:07,600 Speaker 1: side comparison like that, you know, kind of a B 81 00:04:08,040 --> 00:04:10,080 Speaker 1: A B testing, So we're gonna a B test the 82 00:04:10,120 --> 00:04:13,760 Speaker 1: Ironmonger I P A s. I've had them both the 83 00:04:13,840 --> 00:04:16,200 Speaker 1: four They're absolutely delicious, So I can't wait to have 84 00:04:16,240 --> 00:04:17,880 Speaker 1: them again and and for you to have them for 85 00:04:17,880 --> 00:04:20,760 Speaker 1: the first time. Yeah, and these are packaged by the 86 00:04:20,760 --> 00:04:22,719 Speaker 1: way in crowlers, So if you don't know what a 87 00:04:22,720 --> 00:04:26,560 Speaker 1: crowler is like. For a while, uh, growlers were really cool, 88 00:04:26,680 --> 00:04:28,800 Speaker 1: and I mean they're still around. You need a sixty 89 00:04:28,800 --> 00:04:33,240 Speaker 1: four rounds essentially um glass bottle and fill it up 90 00:04:33,279 --> 00:04:37,240 Speaker 1: with beer. Crowlers are kind of the new thing. And 91 00:04:37,279 --> 00:04:41,240 Speaker 1: you can get these two of beer in one can 92 00:04:41,360 --> 00:04:43,880 Speaker 1: that they fill up with fresh beer. Fill it on 93 00:04:43,920 --> 00:04:45,520 Speaker 1: the spot right in front of you, and then they 94 00:04:45,600 --> 00:04:48,440 Speaker 1: got their little canning machine and seals, i mean steals 95 00:04:48,440 --> 00:04:50,320 Speaker 1: that litter right on there right, so this beer is 96 00:04:50,680 --> 00:04:53,520 Speaker 1: fresh as a baby's bottom. So and and when you 97 00:04:53,560 --> 00:04:55,360 Speaker 1: have the giant can, it's kind of nice. It makes 98 00:04:55,360 --> 00:04:57,800 Speaker 1: you feel like a little like a little kid in 99 00:04:57,839 --> 00:04:59,359 Speaker 1: a ball or two. At the same time, you have 100 00:04:59,400 --> 00:05:01,440 Speaker 1: a hold of this hand and it's like fills up 101 00:05:01,480 --> 00:05:04,640 Speaker 1: my whole hand and pretty awesome. Actually, yeah, for you, 102 00:05:04,720 --> 00:05:06,880 Speaker 1: it's probably like to size. For me, it feels a 103 00:05:06,920 --> 00:05:09,159 Speaker 1: giant because I've got like tiny hands. Oh, this feels 104 00:05:09,160 --> 00:05:11,120 Speaker 1: like what a twelve months can feels like to everyone else. 105 00:05:12,600 --> 00:05:18,680 Speaker 1: All right, so we'll crack this. You can tell like 106 00:05:18,760 --> 00:05:21,359 Speaker 1: the crawler has a distinct distinct sound as well. You know, 107 00:05:21,440 --> 00:05:24,120 Speaker 1: it doesn't havend like that light high pitched can. It 108 00:05:24,120 --> 00:05:27,480 Speaker 1: sounds like you're opening a like a barrel, a barrel 109 00:05:27,520 --> 00:05:32,119 Speaker 1: of beer. I will say, beautiful hoper roma just filled 110 00:05:32,120 --> 00:05:36,920 Speaker 1: the freaking room. Two different IPAs, but already just distinctly 111 00:05:36,920 --> 00:05:39,520 Speaker 1: different colors. But yeah, the yeah, the single i PA 112 00:05:39,560 --> 00:05:42,760 Speaker 1: is definitely darker. The double i PA, which is the anvil, 113 00:05:43,600 --> 00:05:48,800 Speaker 1: is lighter. So the Damascus pretty good. Yeah, it's like 114 00:05:49,200 --> 00:05:52,040 Speaker 1: creamy and smooth. It's yeah, someone's got like it's got 115 00:05:52,120 --> 00:05:55,280 Speaker 1: a like a lactose Like a lot of folks are 116 00:05:55,320 --> 00:05:58,039 Speaker 1: doing some like lactose sugar in there for an I PA. 117 00:05:58,040 --> 00:06:03,239 Speaker 1: It's just like really rich, creamy mouth fields a legit 118 00:06:03,680 --> 00:06:08,200 Speaker 1: tasty I P A Damascus from Ironmonger Brewing. Awesome beer. 119 00:06:09,240 --> 00:06:11,279 Speaker 1: Uh you get to do side by side now with 120 00:06:11,400 --> 00:06:14,080 Speaker 1: the anvil. But cheers, yeah, cheers on the anvil. Oh 121 00:06:14,160 --> 00:06:19,320 Speaker 1: my goodness. M Yeah, the anvils like kind of one 122 00:06:19,360 --> 00:06:22,000 Speaker 1: of those juice bombs almost pretty much juicy, Yeah, juicy 123 00:06:22,040 --> 00:06:25,320 Speaker 1: are brighter, still got a little bit of that like 124 00:06:25,960 --> 00:06:28,280 Speaker 1: bitter through the center and on the back end of 125 00:06:28,320 --> 00:06:31,800 Speaker 1: the beer. Uh, but it also retains that juic nous, 126 00:06:31,800 --> 00:06:35,120 Speaker 1: so it doesn't have finished like Brillo pad bitter or 127 00:06:35,120 --> 00:06:37,320 Speaker 1: anything like that. Right. Yeah, it doesn't drink like a 128 00:06:37,360 --> 00:06:39,880 Speaker 1: West Coast I PA where it just finishes really dry 129 00:06:40,080 --> 00:06:42,480 Speaker 1: and kind of dries up in your mouth. Yeah. I 130 00:06:42,560 --> 00:06:44,640 Speaker 1: kind of like how consistent it is the whole way 131 00:06:44,680 --> 00:06:47,159 Speaker 1: through from sip to the way it rolls off the 132 00:06:47,160 --> 00:06:50,320 Speaker 1: back of your tongue. Yeah. I'm a huge fan of 133 00:06:50,320 --> 00:06:54,120 Speaker 1: this Anvil double I P a from Ironmonger. I feel 134 00:06:54,160 --> 00:06:56,479 Speaker 1: like they're ruining one of the best I pas in 135 00:06:56,480 --> 00:07:00,040 Speaker 1: the Southeast. Uh, this one right here, And I like 136 00:07:00,080 --> 00:07:01,960 Speaker 1: they're already starting to kind of kind of see that 137 00:07:02,040 --> 00:07:05,560 Speaker 1: in the orders ticking up. Uh. And it's just a 138 00:07:05,640 --> 00:07:08,320 Speaker 1: really popular beer and I don't know why. After drinking 139 00:07:08,320 --> 00:07:12,040 Speaker 1: a couple of them. It's just really really tasty. And 140 00:07:12,080 --> 00:07:14,240 Speaker 1: this is man a Diamond and the Rough right here, 141 00:07:14,960 --> 00:07:19,200 Speaker 1: just outside of of town, out of Atlanta, and man, 142 00:07:19,240 --> 00:07:21,440 Speaker 1: they're crushing it, dude. I really like the spear. It's 143 00:07:21,440 --> 00:07:24,360 Speaker 1: that's really small space, but real cute space. Definitely worth 144 00:07:24,360 --> 00:07:26,360 Speaker 1: a visit to Ironmonger to get the speer. Yeah, is 145 00:07:26,400 --> 00:07:28,000 Speaker 1: that there is the other logo I guess right there. Yeah, 146 00:07:28,000 --> 00:07:31,000 Speaker 1: it's got the guy with like a like a blacksmith 147 00:07:31,040 --> 00:07:34,880 Speaker 1: blacksmith hammer, right, so like lay down the law on 148 00:07:35,000 --> 00:07:38,240 Speaker 1: some iron. I guess that's like one of the roles 149 00:07:38,240 --> 00:07:40,160 Speaker 1: that you can play on when you're when you're ultra 150 00:07:40,320 --> 00:07:42,120 Speaker 1: nerdy board game. So that's probably true, right, Yeah. I 151 00:07:42,160 --> 00:07:44,320 Speaker 1: guess in a Gurricola or something that there's gotta be 152 00:07:44,320 --> 00:07:46,559 Speaker 1: an ironmonger at some point too. To put the shoes 153 00:07:46,600 --> 00:07:48,400 Speaker 1: on the horse man all the choices, you gotta have 154 00:07:48,400 --> 00:07:52,240 Speaker 1: somebody doing that, all right, Matt to the topic in hand, 155 00:07:52,360 --> 00:07:57,120 Speaker 1: retirement investing is simpler than you think. Ultimately, when it 156 00:07:57,120 --> 00:08:01,000 Speaker 1: comes down to it, people want to make retirement investing 157 00:08:01,040 --> 00:08:04,000 Speaker 1: hard and I don't think necessarily they like, oh please, 158 00:08:04,080 --> 00:08:06,680 Speaker 1: let's make this arduous, but they make it harder than 159 00:08:06,720 --> 00:08:09,280 Speaker 1: it should be. And so we want to give kind 160 00:08:09,280 --> 00:08:13,120 Speaker 1: of an overview to help people understand that it is 161 00:08:13,200 --> 00:08:15,320 Speaker 1: simpler than you think it is. So we want to 162 00:08:15,360 --> 00:08:18,240 Speaker 1: kind of give people some of the tools to go 163 00:08:18,320 --> 00:08:21,680 Speaker 1: out there and invest with confidence knowing that you're doing 164 00:08:21,680 --> 00:08:25,200 Speaker 1: it properly. Yeah, And the biggest thing that makes it 165 00:08:25,240 --> 00:08:28,640 Speaker 1: so complicated are the tax implications, right, Like the actual 166 00:08:28,680 --> 00:08:31,400 Speaker 1: investing it's not hard. You just you open it. You 167 00:08:31,440 --> 00:08:33,360 Speaker 1: open an account, and then you decide what to buy 168 00:08:33,360 --> 00:08:36,679 Speaker 1: and you buy it and that's it. Like that's literally boom, 169 00:08:36,679 --> 00:08:39,880 Speaker 1: You've invested, right There's it really can be that easy. 170 00:08:39,920 --> 00:08:42,200 Speaker 1: It's just when you start taking into account and start 171 00:08:42,280 --> 00:08:44,839 Speaker 1: trying to figure out the you know, like the absolute 172 00:08:44,920 --> 00:08:49,040 Speaker 1: best way to work work the tax system, like in 173 00:08:49,040 --> 00:08:52,160 Speaker 1: your favor as far as when you get a tax deduction. Um. 174 00:08:52,240 --> 00:08:53,840 Speaker 1: And we'll get more into that, you know, as we 175 00:08:54,040 --> 00:08:56,600 Speaker 1: as we uh get further into this episode. But that 176 00:08:56,720 --> 00:09:01,119 Speaker 1: is the biggest difference between some of these different retirement accounts, 177 00:09:01,400 --> 00:09:03,800 Speaker 1: which tends to make it a little more complicated. We're 178 00:09:03,800 --> 00:09:05,280 Speaker 1: not gonna spend a ton of time on that because 179 00:09:05,320 --> 00:09:06,720 Speaker 1: we don't want to get bogged down with all the 180 00:09:06,800 --> 00:09:09,760 Speaker 1: details of every single retirement account. But we're gonna hit 181 00:09:09,760 --> 00:09:12,360 Speaker 1: the high points and hopefully yeah, I point you guys 182 00:09:12,400 --> 00:09:15,640 Speaker 1: in the right direction to I mean literally get investing 183 00:09:15,720 --> 00:09:19,360 Speaker 1: tomorrow right like and and it's really I think this 184 00:09:19,440 --> 00:09:23,880 Speaker 1: is probably a show that's investing for the ten percent 185 00:09:23,920 --> 00:09:26,000 Speaker 1: of people out there that are either uber wealthy or 186 00:09:26,080 --> 00:09:28,679 Speaker 1: just have nothing to invest right now. Um. And so 187 00:09:28,800 --> 00:09:31,920 Speaker 1: those people probably won't find a lot of use out 188 00:09:31,920 --> 00:09:34,920 Speaker 1: of this podcast, but for the out there, for most 189 00:09:35,400 --> 00:09:39,000 Speaker 1: people in America, we think that this episode will help 190 00:09:39,040 --> 00:09:41,200 Speaker 1: you kind of sort through things, because I know, sometimes 191 00:09:41,240 --> 00:09:44,080 Speaker 1: just looking at what these accounts are called can feel 192 00:09:44,120 --> 00:09:47,199 Speaker 1: like vegetable stew, like oh my goodness, like it was 193 00:09:47,360 --> 00:09:51,080 Speaker 1: a lot of different letters, letters and numbers any and 194 00:09:51,120 --> 00:09:54,120 Speaker 1: so when you have like the letters, it can be confusing. Yeah, 195 00:09:54,120 --> 00:09:56,720 Speaker 1: and four oh one K, which is literally named after 196 00:09:56,840 --> 00:09:59,640 Speaker 1: the section of the lavirus tax law. Yeah, and so 197 00:09:59,800 --> 00:10:01,400 Speaker 1: you you would think like we could name it something 198 00:10:01,440 --> 00:10:03,520 Speaker 1: that's like just as simple as hey, this is your 199 00:10:03,520 --> 00:10:06,280 Speaker 1: pretax account and this is your post tax account. Something 200 00:10:06,320 --> 00:10:08,959 Speaker 1: that kind of way too easy too simplifies it for people. 201 00:10:09,280 --> 00:10:11,680 Speaker 1: But because that doesn't exist, that's why we're here to 202 00:10:11,840 --> 00:10:14,120 Speaker 1: try to help it you sort through things. And I 203 00:10:14,120 --> 00:10:17,480 Speaker 1: wanted to touch on the fact that there are some 204 00:10:17,559 --> 00:10:20,559 Speaker 1: assumptions before you kind of open a retirement account and 205 00:10:20,559 --> 00:10:22,960 Speaker 1: started investing in your retirement, which is you want to 206 00:10:23,000 --> 00:10:25,040 Speaker 1: have some margin. And we touched on this before back 207 00:10:25,080 --> 00:10:26,840 Speaker 1: when we talk you know, when we touched on budgets 208 00:10:26,880 --> 00:10:29,720 Speaker 1: as well, right, that you want to make sure you 209 00:10:29,760 --> 00:10:32,040 Speaker 1: kind of have some money set aside for like a 210 00:10:32,080 --> 00:10:34,960 Speaker 1: little emergency fund because you don't want to end up 211 00:10:34,960 --> 00:10:38,960 Speaker 1: like me. Uh, twelve years ago. I think it was 212 00:10:39,000 --> 00:10:42,600 Speaker 1: maybe when you know, I learned about the different retirement 213 00:10:42,640 --> 00:10:45,040 Speaker 1: accounts and I was told that like, oh, you gotta 214 00:10:45,080 --> 00:10:47,160 Speaker 1: do it now because every year earlier that you can 215 00:10:47,200 --> 00:10:49,480 Speaker 1: do it, you know, it's just more exponential growth or 216 00:10:49,559 --> 00:10:51,800 Speaker 1: more compounding growth, you know, down the road. So I 217 00:10:51,880 --> 00:10:55,439 Speaker 1: was like, all right, let's do this without knowing anything. 218 00:10:55,640 --> 00:10:58,720 Speaker 1: And I opened a roth Ira and started buying some stuff. 219 00:10:58,720 --> 00:11:00,280 Speaker 1: And I didn't know what I was doing. Dude, were 220 00:11:00,320 --> 00:11:03,560 Speaker 1: you buying individual stocks? No? Okay, yeah, so thank goodness 221 00:11:03,600 --> 00:11:05,840 Speaker 1: I wasn't. But the next worst thing, what's what's what 222 00:11:05,880 --> 00:11:07,959 Speaker 1: do you think would be the next worst thing? Probably 223 00:11:08,679 --> 00:11:12,280 Speaker 1: you went somewhere that had ridiculously high fees. You got it. 224 00:11:13,760 --> 00:11:16,440 Speaker 1: So yeah, And I don't know if things were different, 225 00:11:16,480 --> 00:11:19,720 Speaker 1: you know, it's in fifteen years ago. But the word 226 00:11:19,840 --> 00:11:22,160 Speaker 1: was like, all right, it's a little bit more expensive. 227 00:11:22,160 --> 00:11:25,400 Speaker 1: But if you've got this rock star fund manager managing 228 00:11:25,559 --> 00:11:28,160 Speaker 1: that fund, the mutual fund, well, man, he might get 229 00:11:28,200 --> 00:11:30,320 Speaker 1: like anywhere between two and five pc better than like 230 00:11:30,360 --> 00:11:32,240 Speaker 1: what the you know, general market might might do or 231 00:11:32,280 --> 00:11:34,240 Speaker 1: what just kind of a standard index fund would do, 232 00:11:34,280 --> 00:11:36,920 Speaker 1: which is, you know, a fund that's just representative of 233 00:11:36,960 --> 00:11:39,679 Speaker 1: the entire market. So I say all that because I 234 00:11:39,920 --> 00:11:42,440 Speaker 1: kind of learned that the hard way, which is that 235 00:11:43,280 --> 00:11:47,000 Speaker 1: I got started too early, too soon, you know, and 236 00:11:47,120 --> 00:11:49,600 Speaker 1: before I knew anything with what I was doing, and 237 00:11:49,640 --> 00:11:52,600 Speaker 1: I was putting money into this account that I should 238 00:11:52,640 --> 00:11:55,240 Speaker 1: have left alone. But because I was young and it 239 00:11:55,320 --> 00:11:58,440 Speaker 1: wasn't didn't have a stable financial footing, I had to 240 00:11:58,520 --> 00:12:01,720 Speaker 1: kind of dip back into that and deplete it before 241 00:12:01,720 --> 00:12:04,040 Speaker 1: it was able to do anything. So I say all 242 00:12:04,040 --> 00:12:07,839 Speaker 1: that to say, this is great information once you kind 243 00:12:07,840 --> 00:12:09,560 Speaker 1: of have an emergency fund set up and you're looking 244 00:12:09,559 --> 00:12:12,000 Speaker 1: to basically figure out what to do next with your money, 245 00:12:12,040 --> 00:12:14,600 Speaker 1: which is a great problem to have. So Matt, let's 246 00:12:14,600 --> 00:12:19,120 Speaker 1: explain what some of these retirement accounts are and how 247 00:12:19,160 --> 00:12:24,160 Speaker 1: people can know which one they should be choosing as 248 00:12:24,160 --> 00:12:27,040 Speaker 1: they begin they're investing. Yeah, so maybe like just broadly, 249 00:12:27,720 --> 00:12:29,319 Speaker 1: like what what's like how would you define just a 250 00:12:29,400 --> 00:12:31,760 Speaker 1: retirement account? Because I think people sometimes are like, well, 251 00:12:31,760 --> 00:12:33,600 Speaker 1: how does a retirement is that? Like when you open 252 00:12:33,720 --> 00:12:35,640 Speaker 1: up an account with like each trade, is that a 253 00:12:35,760 --> 00:12:38,720 Speaker 1: retirement account? Or how would how would you define like 254 00:12:38,720 --> 00:12:41,320 Speaker 1: a retirement account in general. Sure, Yeah, I would say 255 00:12:41,400 --> 00:12:46,040 Speaker 1: that it is putting money in the stock market for 256 00:12:46,240 --> 00:12:49,800 Speaker 1: the long haul that you will not touch until you retire. 257 00:12:50,720 --> 00:12:52,920 Speaker 1: And so I think like sometimes along the way people 258 00:12:53,200 --> 00:12:55,800 Speaker 1: a lot of people want to tap their retirement accounts 259 00:12:56,080 --> 00:12:58,160 Speaker 1: um and there are a lot of consequences with that too. 260 00:12:58,440 --> 00:13:01,760 Speaker 1: So if you're going to best make sure that it 261 00:13:01,880 --> 00:13:05,240 Speaker 1: is invested broadly in the stock market for a long, 262 00:13:05,600 --> 00:13:08,040 Speaker 1: long period of time, that you're willing to not touch it. 263 00:13:08,040 --> 00:13:10,319 Speaker 1: And that goes back to what you just mentioned being 264 00:13:10,320 --> 00:13:13,600 Speaker 1: financially prepared. And so if if you're not ready to 265 00:13:13,640 --> 00:13:16,600 Speaker 1: put this money away for the next twenty to thirty years, 266 00:13:16,720 --> 00:13:19,240 Speaker 1: I'll do it right, it should be in your savings 267 00:13:19,280 --> 00:13:21,720 Speaker 1: account right now. Yeah. Yeah, if you're looking for something 268 00:13:21,720 --> 00:13:23,679 Speaker 1: that's a little more liquid and you want to be 269 00:13:23,760 --> 00:13:26,240 Speaker 1: able to say, you something for maybe a down payment 270 00:13:26,240 --> 00:13:30,560 Speaker 1: on the house soon or for like renovation or just whatever, 271 00:13:30,640 --> 00:13:33,040 Speaker 1: something that's going to cost some money, you want to 272 00:13:33,080 --> 00:13:34,800 Speaker 1: have that. Yeah, like you said, in a like a 273 00:13:34,880 --> 00:13:38,040 Speaker 1: higher yield savings account or checking account in general, not 274 00:13:38,160 --> 00:13:40,560 Speaker 1: in the stock market. Okay, So we we just talked 275 00:13:40,600 --> 00:13:42,840 Speaker 1: about what retirement accounts are, and you want to talk 276 00:13:42,880 --> 00:13:46,520 Speaker 1: about some specific accounts, then, yeah, specific retirement accounts. There 277 00:13:46,520 --> 00:13:49,839 Speaker 1: are two main types of retirement accounts that you will 278 00:13:49,880 --> 00:13:53,360 Speaker 1: hear about all over the place, and you have access 279 00:13:53,640 --> 00:13:57,199 Speaker 1: to I will at least one of these, because everyone 280 00:13:57,240 --> 00:14:00,400 Speaker 1: has access to to some of these. So the IRA 281 00:14:00,720 --> 00:14:03,640 Speaker 1: is one that you'll hear. There's a regular IRA, and 282 00:14:03,720 --> 00:14:06,000 Speaker 1: there's a ROTH IRA and yeah, and the IRA and 283 00:14:06,040 --> 00:14:09,520 Speaker 1: I mean that's individual retirement account I RA. Yep. So 284 00:14:10,440 --> 00:14:13,280 Speaker 1: this is one that literally no matter what you are, 285 00:14:13,280 --> 00:14:15,520 Speaker 1: if you're self employed, if you work for a large 286 00:14:15,520 --> 00:14:17,720 Speaker 1: employer or a small employer, you have access to this 287 00:14:18,520 --> 00:14:21,600 Speaker 1: on your own, outside of any sort of employer relationship. 288 00:14:21,640 --> 00:14:24,760 Speaker 1: You can open up your own IRA. Uh, and we'll 289 00:14:24,760 --> 00:14:27,920 Speaker 1: get into the differences between the WRATH and the regular UM. 290 00:14:28,000 --> 00:14:30,640 Speaker 1: And then the other main retirement account that you can 291 00:14:30,720 --> 00:14:34,400 Speaker 1: choose is employer based and that's the four oh one 292 00:14:34,480 --> 00:14:37,640 Speaker 1: K and a lot of people that's the easiest thing 293 00:14:37,640 --> 00:14:41,080 Speaker 1: to get into because sometimes your employer even automatically enrolls 294 00:14:41,160 --> 00:14:42,960 Speaker 1: you in your four oh one K at work, which 295 00:14:42,960 --> 00:14:46,440 Speaker 1: I think is brilliant. Yeah, that's awesome. I wish I 296 00:14:46,480 --> 00:14:49,880 Speaker 1: could remember the story. But yeah, basically, employers started doing 297 00:14:49,960 --> 00:14:51,840 Speaker 1: that they started switching it to where you had to 298 00:14:52,000 --> 00:14:56,000 Speaker 1: instead of opt in two contribute to your four O 299 00:14:56,040 --> 00:14:58,680 Speaker 1: one K, you had to opt out. Different companies were 300 00:14:58,680 --> 00:15:01,760 Speaker 1: trying to find ways to pay basically incentivized their employees 301 00:15:02,120 --> 00:15:03,760 Speaker 1: to save more because they're like, dang it, like why 302 00:15:03,800 --> 00:15:06,840 Speaker 1: aren't they saying why are they saving money? Because you know, 303 00:15:06,920 --> 00:15:11,600 Speaker 1: the future of social security isn't that great and it's 304 00:15:11,680 --> 00:15:13,760 Speaker 1: up to us. You know, it's up to us as individuals. 305 00:15:13,800 --> 00:15:16,840 Speaker 1: Employers can provide can kind of dangle that carrot, but 306 00:15:16,880 --> 00:15:20,120 Speaker 1: employees weren't actually signing up and they, yeah, they made 307 00:15:20,160 --> 00:15:22,240 Speaker 1: that switch to where you had to opt out of 308 00:15:22,280 --> 00:15:25,720 Speaker 1: saving for your form and K, and nobody did. Yeah, 309 00:15:26,120 --> 00:15:28,640 Speaker 1: is that they're like enrolled saving money for you know, 310 00:15:28,960 --> 00:15:31,840 Speaker 1: for the future and all because they kind of did 311 00:15:31,840 --> 00:15:34,560 Speaker 1: a little flip flop there, which I think is brilliant. 312 00:15:34,840 --> 00:15:38,560 Speaker 1: It turns out money is incredibly psychological, and so whatever 313 00:15:38,600 --> 00:15:41,800 Speaker 1: you can do to force yourself into savings, to trick 314 00:15:41,880 --> 00:15:45,560 Speaker 1: your brain into making it less painful, and that's the 315 00:15:45,600 --> 00:15:48,160 Speaker 1: way that your employer kind of tricks you into doing it. Right, 316 00:15:48,440 --> 00:15:52,560 Speaker 1: But money for me even is incredibly psychological and sometimes 317 00:15:53,160 --> 00:15:57,080 Speaker 1: a forced method of forgetting that I'm making income over 318 00:15:57,120 --> 00:16:00,240 Speaker 1: here or over there can be really helpful. And at 319 00:16:00,240 --> 00:16:02,000 Speaker 1: some point we'll do a whole episode just on the 320 00:16:02,040 --> 00:16:05,080 Speaker 1: psychology of money, because that's an interesting topic. I like 321 00:16:05,120 --> 00:16:07,680 Speaker 1: how you separated the two main accounts that we're gonna 322 00:16:07,680 --> 00:16:10,000 Speaker 1: talk about though, Like basically, like you said, four o 323 00:16:10,080 --> 00:16:13,520 Speaker 1: one K and IRA A four ow K being employer 324 00:16:13,600 --> 00:16:18,160 Speaker 1: based retirement account because it's offered through your employer or 325 00:16:18,240 --> 00:16:21,760 Speaker 1: your IRA A which anybody can have, Like like you said, yeah, 326 00:16:21,800 --> 00:16:24,160 Speaker 1: and so let's start with a four own K. Roughly 327 00:16:24,200 --> 00:16:26,840 Speaker 1: half of Americans have access to a four oh one 328 00:16:26,920 --> 00:16:31,760 Speaker 1: K at work. So and most employers offer a match 329 00:16:32,440 --> 00:16:36,120 Speaker 1: on your contributions, and your four oh one K contributions 330 00:16:36,160 --> 00:16:39,480 Speaker 1: come directly out of your paycheck before you even see it. So, 331 00:16:39,480 --> 00:16:43,440 Speaker 1: speaking of psychology, that's not You don't have to do 332 00:16:43,480 --> 00:16:47,520 Speaker 1: a thing except for allocate the percentage. And in my mind, psychologically, 333 00:16:47,800 --> 00:16:49,920 Speaker 1: there's a big difference between checking the percentage amount that's 334 00:16:49,920 --> 00:16:52,840 Speaker 1: gonna come out of your paycheck and then actually taking 335 00:16:52,920 --> 00:16:56,480 Speaker 1: money from your account that you've already received and putting 336 00:16:56,480 --> 00:16:58,880 Speaker 1: it somewhere. There's a huge difference. It's like, oh, I 337 00:16:58,920 --> 00:17:00,720 Speaker 1: never really got it in the first plays. Let's just 338 00:17:00,920 --> 00:17:02,840 Speaker 1: you know, stash this way for the future. Yeah. So 339 00:17:02,880 --> 00:17:04,560 Speaker 1: I think there's a couple of reasons if you have 340 00:17:04,600 --> 00:17:06,400 Speaker 1: access to a four oh one K to take advantage 341 00:17:06,840 --> 00:17:10,760 Speaker 1: that is one, the company match, it's free money. The 342 00:17:10,840 --> 00:17:14,720 Speaker 1: typical company match is if you contribute six percent, your 343 00:17:14,720 --> 00:17:18,840 Speaker 1: company contributes so and there's all sorts. There's some employers 344 00:17:18,840 --> 00:17:21,200 Speaker 1: are even more generous, and if you put in six percent, 345 00:17:21,240 --> 00:17:23,800 Speaker 1: they put in six percent. And some employers offer no 346 00:17:23,880 --> 00:17:27,200 Speaker 1: match at all. If your employer offers a match, take 347 00:17:27,480 --> 00:17:31,440 Speaker 1: advantage of it, and if you don't, you're leaving free 348 00:17:31,440 --> 00:17:33,200 Speaker 1: money on the table. It's like a bonus they want 349 00:17:33,200 --> 00:17:35,240 Speaker 1: to pay you every year that you're just saying, no, 350 00:17:35,240 --> 00:17:38,000 Speaker 1: no thanks, I'm good. Just hearing that, man, like, I've 351 00:17:38,040 --> 00:17:39,720 Speaker 1: never had a four o one K my entire life, 352 00:17:40,320 --> 00:17:43,119 Speaker 1: and especially when that matched. And to hear you know, 353 00:17:43,320 --> 00:17:45,879 Speaker 1: you and other friends that I have who you know 354 00:17:45,920 --> 00:17:48,520 Speaker 1: have four one k is with a match, Oh my gosh, man, 355 00:17:48,560 --> 00:17:50,639 Speaker 1: that is like you said, it's free money. It's a 356 00:17:50,640 --> 00:17:54,000 Speaker 1: guaranteed return. That's the number one thing you do, right, 357 00:17:54,240 --> 00:17:57,080 Speaker 1: That's the number one first thing. If you have access 358 00:17:57,520 --> 00:18:00,159 Speaker 1: to a four oh one K with a match do it, 359 00:18:00,520 --> 00:18:03,760 Speaker 1: take advantage of it, do it now and take advantage 360 00:18:03,800 --> 00:18:06,120 Speaker 1: of the full match. And let's say right now you're 361 00:18:06,280 --> 00:18:09,680 Speaker 1: saving three percent and your employers only contributing one and 362 00:18:09,720 --> 00:18:11,840 Speaker 1: a half percent because you just haven't gotten it up there. 363 00:18:12,200 --> 00:18:14,520 Speaker 1: That should be your main focus. Get up to the match. 364 00:18:14,800 --> 00:18:17,560 Speaker 1: Get up to a six percent UH savings rate so 365 00:18:17,600 --> 00:18:20,679 Speaker 1: that you can take full advantage of that match. And 366 00:18:20,680 --> 00:18:22,760 Speaker 1: when you say like six percent, what like what you're 367 00:18:22,760 --> 00:18:25,920 Speaker 1: talking like six percent of your salary so that your 368 00:18:25,920 --> 00:18:28,680 Speaker 1: pay Yes, So it's yeah. And and like I said, 369 00:18:28,680 --> 00:18:32,159 Speaker 1: employers do it differently, but most employers do offer usually 370 00:18:32,200 --> 00:18:35,080 Speaker 1: a fifty percent match on the first six percent that 371 00:18:35,119 --> 00:18:37,879 Speaker 1: you put in, So if you invest six percent of 372 00:18:38,000 --> 00:18:40,919 Speaker 1: your salary, then they'll invest three percent of your salary 373 00:18:41,200 --> 00:18:43,159 Speaker 1: like on top of it. And you're getting nine percent 374 00:18:43,320 --> 00:18:45,880 Speaker 1: exactly right off the bat, exactly, And you're getting close 375 00:18:45,920 --> 00:18:48,760 Speaker 1: to that ten percent savings right which is unreal, which 376 00:18:48,760 --> 00:18:50,560 Speaker 1: is essentially I think a basic savings rate that you 377 00:18:50,600 --> 00:18:53,080 Speaker 1: should not go below. And the other great thing about 378 00:18:53,119 --> 00:18:56,720 Speaker 1: the four oh one K is that it's essentially on autopilot. 379 00:18:57,040 --> 00:19:00,400 Speaker 1: You put that money in every month and you get 380 00:19:00,480 --> 00:19:02,239 Speaker 1: about it. It just kind of comes out you're used 381 00:19:02,280 --> 00:19:04,760 Speaker 1: to get in a paycheck that's a certain amount, and 382 00:19:05,040 --> 00:19:07,080 Speaker 1: you begin to live on that and you forget that 383 00:19:07,119 --> 00:19:09,520 Speaker 1: you even have this money. It never enters your bank 384 00:19:09,560 --> 00:19:13,120 Speaker 1: account at home, so you never even have to as 385 00:19:13,160 --> 00:19:16,840 Speaker 1: being your money in your possession. It's automatically dispersed for 386 00:19:16,920 --> 00:19:20,399 Speaker 1: you for your future. Okay, Joel, So my question for 387 00:19:20,440 --> 00:19:22,359 Speaker 1: you is what can you do with that money? Like 388 00:19:22,440 --> 00:19:24,199 Speaker 1: within the four one k is it? Like? Do you 389 00:19:24,200 --> 00:19:25,879 Speaker 1: have the same options that I have with like my 390 00:19:25,920 --> 00:19:29,600 Speaker 1: account with Vanguard. Well, so it's gonna differ depending on 391 00:19:29,640 --> 00:19:31,520 Speaker 1: the employer that you have. I'm really lucky and my 392 00:19:31,560 --> 00:19:35,080 Speaker 1: employer gives me access to Vanguard funds. As you'll here 393 00:19:35,160 --> 00:19:39,280 Speaker 1: later on, we're both pretty big fans of Vand I mean, yeah, 394 00:19:39,359 --> 00:19:43,000 Speaker 1: I don't have a employer sponsored retirement account, and that's 395 00:19:43,000 --> 00:19:45,399 Speaker 1: who I've chosen as well, like on my own. So 396 00:19:45,440 --> 00:19:49,679 Speaker 1: whoever set up your company's retirement account basically knew what 397 00:19:49,720 --> 00:19:52,800 Speaker 1: they're doing. Yeah, and it's but essentially it's gonna depend 398 00:19:52,840 --> 00:19:55,240 Speaker 1: on your company and everyone out there listening. You're going 399 00:19:55,320 --> 00:19:58,080 Speaker 1: to have access to different funds than I do, and 400 00:19:58,119 --> 00:19:59,919 Speaker 1: you're probably gonna be with a different company that I am. 401 00:20:00,119 --> 00:20:01,639 Speaker 1: You know, maybe some of you are with Vanguard, but 402 00:20:01,680 --> 00:20:04,000 Speaker 1: some of you might be with Fidelity or t row 403 00:20:04,080 --> 00:20:07,280 Speaker 1: Price or there's a ton of companies out there that 404 00:20:07,320 --> 00:20:10,159 Speaker 1: you could be with. Uh and so later on in 405 00:20:10,200 --> 00:20:12,040 Speaker 1: the podcast, we'll kind of talk to you about how 406 00:20:12,080 --> 00:20:14,320 Speaker 1: to choose funds inside of that four oh one k. 407 00:20:14,640 --> 00:20:16,480 Speaker 1: But looping back the I mean, it's still the number 408 00:20:16,480 --> 00:20:18,560 Speaker 1: one thing to pay attention to though, is the match, 409 00:20:18,600 --> 00:20:21,000 Speaker 1: because it doesn't matter if the you know, if it's 410 00:20:21,040 --> 00:20:23,240 Speaker 1: the expense ratios are high, or if it doesn't get 411 00:20:23,359 --> 00:20:27,760 Speaker 1: like that great of a rate. You can't beat at 412 00:20:28,240 --> 00:20:30,840 Speaker 1: match up to a certain percentage of your salary exactly. 413 00:20:31,080 --> 00:20:33,200 Speaker 1: The number one thing you can't even pay off credit 414 00:20:33,200 --> 00:20:35,159 Speaker 1: card debt. You know, your highest credit card debt is 415 00:20:35,160 --> 00:20:38,600 Speaker 1: probably gonna be so even that is not going to 416 00:20:38,640 --> 00:20:42,800 Speaker 1: provide quite as good of a return as exactly. Yeah, man, 417 00:20:43,320 --> 00:20:45,840 Speaker 1: you've got to take advantage of that. Yeah. So iras 418 00:20:45,840 --> 00:20:50,160 Speaker 1: are next. Everyone has access to an IRA because it's 419 00:20:50,160 --> 00:20:54,480 Speaker 1: outside of your employer's scope. It's literally you and the 420 00:20:54,520 --> 00:20:57,640 Speaker 1: investing company that you're going through. That's what I have, right, 421 00:20:58,119 --> 00:21:00,960 Speaker 1: Kate and I both have roth iras. Yeah, and so 422 00:21:01,080 --> 00:21:03,400 Speaker 1: the difference for people out there that don't know what's 423 00:21:03,400 --> 00:21:06,240 Speaker 1: the difference between a roth ira and a traditional ira. 424 00:21:07,119 --> 00:21:09,880 Speaker 1: So the main difference then between a a traditional ira 425 00:21:10,000 --> 00:21:13,840 Speaker 1: and a roth ira is the tax treatment. You're investing 426 00:21:13,920 --> 00:21:17,720 Speaker 1: into a traditional ira with pre tax dollars and so 427 00:21:17,920 --> 00:21:19,600 Speaker 1: essentially all of the dollars, all the money that you 428 00:21:19,600 --> 00:21:24,600 Speaker 1: put into your traditional ira, it's tax deductible, counts against 429 00:21:24,800 --> 00:21:29,480 Speaker 1: your earned income basically, and the money within that ira 430 00:21:29,720 --> 00:21:32,560 Speaker 1: grows tax deferred. And then you know, when when you 431 00:21:32,640 --> 00:21:35,000 Speaker 1: get to the point to where you're withdrawing them, that's 432 00:21:35,000 --> 00:21:38,280 Speaker 1: when you pay your standard taxes on them. And a rath, yeah, 433 00:21:38,320 --> 00:21:40,959 Speaker 1: as opposed to wrath, which is it's I mean basically 434 00:21:41,040 --> 00:21:42,800 Speaker 1: take it and you flip it, so you're paying all 435 00:21:42,800 --> 00:21:46,760 Speaker 1: the taxes up front, and so they're essentially post tax dollars, 436 00:21:46,760 --> 00:21:49,720 Speaker 1: so it's not tax deductible. Um, you take that money 437 00:21:49,720 --> 00:21:51,760 Speaker 1: and you put it in the count and nothing happens. 438 00:21:52,080 --> 00:21:54,639 Speaker 1: You know, there's no deduction, there's no tax deduction, and 439 00:21:54,680 --> 00:21:57,199 Speaker 1: that nothing happens except for it grows like mad in 440 00:21:57,240 --> 00:22:00,560 Speaker 1: the stock market, yes, and then it grows gross tax 441 00:22:00,560 --> 00:22:04,119 Speaker 1: free when the time comes to make those withdrawals. Um 442 00:22:04,240 --> 00:22:06,320 Speaker 1: at fifty nine and a half. So that's I mean, 443 00:22:06,320 --> 00:22:08,960 Speaker 1: that's the biggest difference between the traditional ira and a 444 00:22:09,040 --> 00:22:11,600 Speaker 1: roth ira. I think for most folks, especially for most 445 00:22:11,600 --> 00:22:14,320 Speaker 1: listeners who are younger, you want to do a roth ira, 446 00:22:14,720 --> 00:22:17,280 Speaker 1: Like that's it's just pretty simple right now. Oh, and 447 00:22:17,440 --> 00:22:20,640 Speaker 1: especially with the with the new with the new tax laws, right. Yeah, 448 00:22:20,640 --> 00:22:23,120 Speaker 1: So the new tax law changes actually made a roth 449 00:22:23,160 --> 00:22:27,399 Speaker 1: ira even better for young people and for medium income folks. Uh, 450 00:22:27,720 --> 00:22:31,800 Speaker 1: you you're gonna want to choose a wrath because essentially 451 00:22:31,800 --> 00:22:34,479 Speaker 1: the tax bracket for people making that sort of income 452 00:22:34,680 --> 00:22:38,640 Speaker 1: went down. Middle income earners tax bracket essentially dropped. Yeah, 453 00:22:38,680 --> 00:22:41,159 Speaker 1: And so if you're in that tax bracket where you're uh, 454 00:22:41,320 --> 00:22:44,639 Speaker 1: your upper tax rate is twelve percent now it used 455 00:22:44,680 --> 00:22:49,200 Speaker 1: to be. So paying that tax now, as in never 456 00:22:49,320 --> 00:22:53,360 Speaker 1: having to pay tax again, yeah, is a great idea. 457 00:22:53,520 --> 00:22:56,600 Speaker 1: I think a roth ira actually only got better and 458 00:22:56,680 --> 00:22:59,080 Speaker 1: makes more sense. That's insane now, and I think it 459 00:22:59,119 --> 00:23:01,720 Speaker 1: was great before. I think was probably the option before. Yeah, 460 00:23:02,119 --> 00:23:04,920 Speaker 1: So could you imagine now, like literally you take that money, 461 00:23:05,200 --> 00:23:06,920 Speaker 1: you know, like money that you earn from your job, 462 00:23:07,520 --> 00:23:10,240 Speaker 1: you paid twelve percent on it, and then you invest 463 00:23:10,320 --> 00:23:12,159 Speaker 1: it and then you never have to pay tax on 464 00:23:12,200 --> 00:23:14,639 Speaker 1: that again, it's amazing, like in regard regardless of how 465 00:23:14,680 --> 00:23:16,199 Speaker 1: many how many years. And that's one of the beauties 466 00:23:16,240 --> 00:23:19,200 Speaker 1: of a roth ira a is that you can hang 467 00:23:19,200 --> 00:23:22,359 Speaker 1: on to it basically for forever. There's no mandatory withdrawals, 468 00:23:22,680 --> 00:23:26,480 Speaker 1: and so you can that can continue to grow versus 469 00:23:26,520 --> 00:23:30,280 Speaker 1: a traditional ira, which they require you to take some 470 00:23:31,280 --> 00:23:34,760 Speaker 1: distributions at seventy and a half. Yes, so the roth's 471 00:23:34,800 --> 00:23:37,000 Speaker 1: got a lot going for it. Pay your tax now, 472 00:23:37,800 --> 00:23:40,239 Speaker 1: never pay tax again on it. And I don't want 473 00:23:40,240 --> 00:23:42,479 Speaker 1: to get too pessimistic, but when you look at the 474 00:23:42,480 --> 00:23:45,560 Speaker 1: future of taxes in America, like are you ever going 475 00:23:45,640 --> 00:23:48,080 Speaker 1: to pay less than twelve percent? It's unlikely for a 476 00:23:48,119 --> 00:23:51,440 Speaker 1: lot of reasons, and so rath is truly the best 477 00:23:51,440 --> 00:23:54,040 Speaker 1: way to go in all likelihood. So the one thing 478 00:23:54,040 --> 00:23:56,679 Speaker 1: about a rath is it's got a contribution limit, and 479 00:23:56,720 --> 00:23:59,840 Speaker 1: so if you want to contribute a lot to retirement savings, 480 00:24:00,359 --> 00:24:01,600 Speaker 1: you won't be able to do that with a roth 481 00:24:01,760 --> 00:24:07,479 Speaker 1: You're capped at being able to invest a year inside 482 00:24:07,480 --> 00:24:10,719 Speaker 1: of a roth ira. Yeah, that's like the biggest and 483 00:24:10,760 --> 00:24:13,040 Speaker 1: I would say maybe only downside to a roth ira 484 00:24:13,280 --> 00:24:15,359 Speaker 1: is that they kind of limit because it's such a sweet, 485 00:24:15,760 --> 00:24:17,720 Speaker 1: you know, vehicle, that's a good way to describe it. 486 00:24:17,760 --> 00:24:20,840 Speaker 1: It's just such a good vehicle for retirement savings that 487 00:24:20,880 --> 00:24:22,720 Speaker 1: they're like, yeah, we're gonna have to put a cap 488 00:24:22,800 --> 00:24:25,720 Speaker 1: on this. And there's also a cap. Think about it, like, 489 00:24:25,760 --> 00:24:27,159 Speaker 1: why would there be a cap on it if if 490 00:24:27,200 --> 00:24:30,359 Speaker 1: it wasn't just like the most sweet deal. Yeah, and uh, 491 00:24:30,480 --> 00:24:32,440 Speaker 1: the cap actually goes up a little bit. If you're 492 00:24:32,440 --> 00:24:35,800 Speaker 1: fifty or over, you get to contribute a year. But 493 00:24:35,840 --> 00:24:38,520 Speaker 1: then there's another cap, and it's an income cap, and 494 00:24:38,640 --> 00:24:41,959 Speaker 1: so if you make over a certain income amount, you 495 00:24:42,000 --> 00:24:46,440 Speaker 1: are not eligible to contribute to a WRATH at all. Yeah. 496 00:24:46,480 --> 00:24:48,399 Speaker 1: So if you're a baller and you're bringing in like 497 00:24:48,520 --> 00:24:51,600 Speaker 1: a lot of income, yeah, the rath Ira isn't gonna 498 00:24:51,600 --> 00:24:53,240 Speaker 1: be for you. And that's one of the beauties of 499 00:24:53,320 --> 00:24:56,439 Speaker 1: a regular four oh one k is that it doesn't 500 00:24:56,440 --> 00:24:59,480 Speaker 1: have any income limits. You can have a high income there. 501 00:25:00,040 --> 00:25:02,959 Speaker 1: So essentially, if you're a mega earner, if you're making 502 00:25:02,960 --> 00:25:05,840 Speaker 1: more than this amount that the rath caps you out at, 503 00:25:06,119 --> 00:25:08,119 Speaker 1: which is a hundred and thirty five thousand dollars for 504 00:25:08,160 --> 00:25:10,679 Speaker 1: single filers and a hundred and ninety nine thousand for 505 00:25:10,720 --> 00:25:14,040 Speaker 1: married couples filing jointly. If you're making more money than that, 506 00:25:14,480 --> 00:25:17,760 Speaker 1: the best way to start allocating your retirement savings is 507 00:25:17,760 --> 00:25:19,800 Speaker 1: in the four oh one K because you can contribute 508 00:25:19,880 --> 00:25:21,879 Speaker 1: a large amount in a four oh one K, up 509 00:25:21,880 --> 00:25:25,199 Speaker 1: to eighteen thousand, five hundred dollars this year, and on 510 00:25:25,320 --> 00:25:27,480 Speaker 1: top of that, you can also contribute just to a 511 00:25:27,600 --> 00:25:32,000 Speaker 1: traditional I RA. So use those vehicles first if you 512 00:25:32,080 --> 00:25:35,600 Speaker 1: make more money than the RATH limits allow. Yeah, Juell 513 00:25:35,640 --> 00:25:39,480 Speaker 1: And so that's just briefly, maybe touch on SEP SEP, 514 00:25:39,640 --> 00:25:42,800 Speaker 1: which stands for a Simplified Employee pension. Yeah, those are 515 00:25:42,800 --> 00:25:45,240 Speaker 1: really cool, especially for a dude like you that works 516 00:25:45,240 --> 00:25:48,600 Speaker 1: from home, what works for himself. Um, and so it's 517 00:25:48,640 --> 00:25:52,800 Speaker 1: not something that anybody that has a traditional job is 518 00:25:52,840 --> 00:25:54,879 Speaker 1: going to take advantage of. But for you folks that 519 00:25:54,920 --> 00:25:58,960 Speaker 1: are working as a contractor getting ten work working for yourself, 520 00:25:59,320 --> 00:26:02,000 Speaker 1: you're gonna really want to consider a set BI RA. 521 00:26:02,280 --> 00:26:04,600 Speaker 1: There's a little more administration, I guess involved with with 522 00:26:04,680 --> 00:26:06,639 Speaker 1: kind of setting those up, and so it's you know, 523 00:26:06,800 --> 00:26:08,840 Speaker 1: there's a little more work involved with it. You know, 524 00:26:08,840 --> 00:26:11,960 Speaker 1: if you're self employed or a contractor like that and 525 00:26:12,000 --> 00:26:15,000 Speaker 1: you're making bank and I'm talking like, if you're looking 526 00:26:15,000 --> 00:26:17,520 Speaker 1: to put away like fifty dollars, you need to you 527 00:26:17,520 --> 00:26:19,520 Speaker 1: need to look this up. I'm nowhere need of that. 528 00:26:19,640 --> 00:26:21,960 Speaker 1: So I've never, you know, even really considered a SEP. 529 00:26:22,440 --> 00:26:26,440 Speaker 1: We're perfectly fine putting away money into our my wrath 530 00:26:26,520 --> 00:26:30,159 Speaker 1: in case rath. But if you're looking at yeah, if 531 00:26:30,200 --> 00:26:32,120 Speaker 1: you've got a really fat year and if you're looking 532 00:26:32,119 --> 00:26:34,240 Speaker 1: to sort of shelter that money and kind of get 533 00:26:34,280 --> 00:26:38,639 Speaker 1: that invested, a SEP is definitely something you want to consider. Yes, 534 00:26:38,680 --> 00:26:41,840 Speaker 1: So if you're self employed, look into a SEP, contact 535 00:26:42,040 --> 00:26:44,439 Speaker 1: someone from Vanguard, you know, do some research. Put a 536 00:26:44,480 --> 00:26:47,560 Speaker 1: set BIRA is probably going to be one of your 537 00:26:47,560 --> 00:26:50,200 Speaker 1: best methods. If you're gonna be able to sock away 538 00:26:50,240 --> 00:26:52,800 Speaker 1: a large amount of retirement savings all at once in 539 00:26:52,880 --> 00:26:55,680 Speaker 1: one year, a set bi ra is an awesome way 540 00:26:55,680 --> 00:26:57,520 Speaker 1: to do it. Yeah, Joe. So we've talked about some 541 00:26:57,520 --> 00:26:59,560 Speaker 1: of the different retirement accounts, right, We've talked about the 542 00:26:59,560 --> 00:27:02,040 Speaker 1: four one k A. We talked about the IRA, the 543 00:27:02,080 --> 00:27:04,360 Speaker 1: different the two you know, two main different iras, which 544 00:27:04,400 --> 00:27:07,919 Speaker 1: is the traditional IRA and then the roth ira UM 545 00:27:07,960 --> 00:27:09,920 Speaker 1: and this step. But there's a few others as well 546 00:27:09,960 --> 00:27:11,800 Speaker 1: that we're not going to even really get into because 547 00:27:11,840 --> 00:27:14,760 Speaker 1: they're just more detailed and sort of nuanced with Again, 548 00:27:15,080 --> 00:27:18,159 Speaker 1: they're not The investing aspect of it isn't complicated. It's 549 00:27:18,200 --> 00:27:21,240 Speaker 1: just the tax implications that make it slightly more or 550 00:27:21,280 --> 00:27:24,199 Speaker 1: slightly less favorable. Um. The difference that it will make 551 00:27:24,240 --> 00:27:27,280 Speaker 1: for you in the long run though, versus not starting 552 00:27:27,280 --> 00:27:31,960 Speaker 1: investing at all is negligible. Yes, Like, the whole reason 553 00:27:31,960 --> 00:27:33,520 Speaker 1: we're talking about this is because we want to get 554 00:27:33,520 --> 00:27:38,200 Speaker 1: you guys investing now. Um, don't let the tax implications 555 00:27:38,400 --> 00:27:41,479 Speaker 1: keep you from getting started. And so, just to be honest, like, 556 00:27:41,520 --> 00:27:44,840 Speaker 1: we're two dudes, drinking beers that care about this stuff deeply, 557 00:27:45,320 --> 00:27:47,960 Speaker 1: but we're not a Wikipedia article. So if that's what 558 00:27:48,000 --> 00:27:50,600 Speaker 1: you're interested in, go do some research. But we want 559 00:27:50,600 --> 00:27:52,760 Speaker 1: to give you the highlights and then give give you 560 00:27:52,800 --> 00:27:57,440 Speaker 1: the information that you can then take and empower yourself 561 00:27:57,680 --> 00:28:00,680 Speaker 1: to start investing for retirement on your own, because it's 562 00:28:00,720 --> 00:28:03,639 Speaker 1: actually a lot easier than you think. Chedual. This conversation 563 00:28:03,640 --> 00:28:05,760 Speaker 1: that we're having is the same conversation that we have 564 00:28:05,800 --> 00:28:08,200 Speaker 1: with our friends to get them moving and to get 565 00:28:08,240 --> 00:28:12,320 Speaker 1: them investing. We want to get folks talking about this 566 00:28:12,359 --> 00:28:14,320 Speaker 1: and we want to get our friends investing. This is 567 00:28:14,359 --> 00:28:17,080 Speaker 1: something that you need to do. And don't let the 568 00:28:17,119 --> 00:28:20,399 Speaker 1: potential of confusion with with tax law and all this 569 00:28:20,440 --> 00:28:23,440 Speaker 1: other stuff. Don't let that keep you from getting invested. 570 00:28:23,840 --> 00:28:26,080 Speaker 1: Thee oh the thing is, it's really it's baby steps. 571 00:28:26,240 --> 00:28:28,560 Speaker 1: It's not that hard. If you can open up a 572 00:28:28,560 --> 00:28:31,200 Speaker 1: savings account, you can either start contributing to your four 573 00:28:31,200 --> 00:28:34,639 Speaker 1: oh one K or open up a roth ira online 574 00:28:35,359 --> 00:28:37,800 Speaker 1: with some money from your savings account and again be 575 00:28:37,880 --> 00:28:40,240 Speaker 1: financially stable. First, make sure you've got enough money in 576 00:28:40,240 --> 00:28:42,760 Speaker 1: your bank account where you don't need this money next 577 00:28:42,800 --> 00:28:45,280 Speaker 1: week or next month or next year. You want this 578 00:28:45,440 --> 00:28:48,360 Speaker 1: money to grow for long term. But if you're ready 579 00:28:48,360 --> 00:28:51,520 Speaker 1: to make that step, it's not that hard. It's pretty simple. 580 00:28:51,800 --> 00:28:54,880 Speaker 1: So take the step, make it happen. And that's like 581 00:28:55,000 --> 00:28:56,520 Speaker 1: we're we want to be your kick in the pants. 582 00:28:56,880 --> 00:29:00,680 Speaker 1: Kick in the pants, okay, So listen to this and no, 583 00:29:01,040 --> 00:29:02,920 Speaker 1: you know what, I can go into work and I 584 00:29:02,920 --> 00:29:05,800 Speaker 1: can log into my employer system tomorrow and I can 585 00:29:05,880 --> 00:29:08,040 Speaker 1: up my contributions to my four oh one K by 586 00:29:08,120 --> 00:29:12,400 Speaker 1: three percent. Take an action from this podcast that will 587 00:29:12,440 --> 00:29:15,600 Speaker 1: actually influence the rest of your life. If you up 588 00:29:15,600 --> 00:29:19,280 Speaker 1: your savings rate for retirement now. If you up your 589 00:29:19,320 --> 00:29:21,920 Speaker 1: savings rate for retirement now, it's going to have a 590 00:29:22,040 --> 00:29:26,280 Speaker 1: huge effect, huge way down the road. And it's just 591 00:29:26,320 --> 00:29:28,600 Speaker 1: as easy to open an account. Man. I love like 592 00:29:28,600 --> 00:29:29,920 Speaker 1: what you said as far as like, if you know 593 00:29:29,960 --> 00:29:32,320 Speaker 1: how to open a savings account online, like with your bank, 594 00:29:32,480 --> 00:29:36,920 Speaker 1: you know how to open a retirement account, say with Vanguard, uh, 595 00:29:37,080 --> 00:29:40,040 Speaker 1: which is again we've mentioned them multiple times, but just 596 00:29:40,040 --> 00:29:42,400 Speaker 1: go with Vanguard. It's you can't go wrong with them. 597 00:29:42,520 --> 00:29:43,920 Speaker 1: And there's a couple of reasons for that that I 598 00:29:43,960 --> 00:29:46,880 Speaker 1: think we should mention really quickly. There are some great 599 00:29:47,160 --> 00:29:50,880 Speaker 1: low cost advisors out there, right, Uh, there's Charles Schwab, 600 00:29:50,960 --> 00:29:55,280 Speaker 1: There's Fidelity, There's some great companies, but they specifically, Yeah, 601 00:29:55,600 --> 00:29:58,440 Speaker 1: but Vanguard in particular, there's a reason that we would 602 00:29:58,440 --> 00:30:02,360 Speaker 1: recommend them over anybody else. And it's because Vanguard is 603 00:30:02,440 --> 00:30:06,840 Speaker 1: essentially in investing what a credit union is to banking. 604 00:30:07,200 --> 00:30:11,160 Speaker 1: And so when we invest in Vanguard, we own a 605 00:30:11,200 --> 00:30:14,440 Speaker 1: piece of Vanguard. We are a part of the company 606 00:30:14,440 --> 00:30:16,880 Speaker 1: in that way. And so because they are essentially this 607 00:30:17,080 --> 00:30:21,600 Speaker 1: co op, UH, investing in Vanguard means that they're not 608 00:30:21,600 --> 00:30:24,200 Speaker 1: out to screw us or to make big profits, and 609 00:30:24,440 --> 00:30:27,720 Speaker 1: there's nothing wrong with companies making a profit, but there's 610 00:30:27,760 --> 00:30:30,760 Speaker 1: something really cool about putting your money in a place 611 00:30:30,960 --> 00:30:33,760 Speaker 1: where that company has your best interest at heart, because 612 00:30:33,800 --> 00:30:37,080 Speaker 1: you are that company to a certain extent. And that's 613 00:30:37,080 --> 00:30:41,600 Speaker 1: why Vanguard is just completely different than any other investing company. 614 00:30:41,800 --> 00:30:44,480 Speaker 1: And there are other people because Vanguard has gotten so big, 615 00:30:44,520 --> 00:30:46,400 Speaker 1: they've got to compete on their level. They've got to 616 00:30:46,440 --> 00:30:52,360 Speaker 1: compete on cost. But Vanguards started the low cost investing 617 00:30:52,400 --> 00:30:56,360 Speaker 1: revolution and they have perfected it. Yeah, yeah, man. They 618 00:30:56,520 --> 00:31:00,400 Speaker 1: their expense ratios by far are the lowest out there. 619 00:31:00,480 --> 00:31:05,040 Speaker 1: I mean, again comparable it's of Fidelity and Schwab, But 620 00:31:05,560 --> 00:31:07,960 Speaker 1: that's I mean, and that's what makes makes them so 621 00:31:08,040 --> 00:31:11,720 Speaker 1: attractive is because when you've got a fund and you're 622 00:31:11,720 --> 00:31:16,920 Speaker 1: paying a certain expense, that expense compounded over years and 623 00:31:17,000 --> 00:31:19,280 Speaker 1: years and years, makes a huge difference down the road. 624 00:31:19,760 --> 00:31:21,720 Speaker 1: And you know, it comes down to if you'd rather 625 00:31:21,760 --> 00:31:23,880 Speaker 1: have that money in your own pocket or in the 626 00:31:23,880 --> 00:31:27,800 Speaker 1: pocket of a bank. So the average expense ratio at 627 00:31:27,880 --> 00:31:32,760 Speaker 1: Vanguard is point to zero percent and the industry average 628 00:31:32,880 --> 00:31:36,040 Speaker 1: is one point one two And that might sound like 629 00:31:36,120 --> 00:31:38,240 Speaker 1: very little to you, right, like point too versus one 630 00:31:38,240 --> 00:31:40,480 Speaker 1: point one two whatever. Those are just numbers now, man, 631 00:31:40,480 --> 00:31:43,680 Speaker 1: we're talking like tens of thousands of dollars in twenty years. 632 00:31:43,720 --> 00:31:46,200 Speaker 1: We're talking hundreds of thousands of dollars and not likelihood 633 00:31:46,200 --> 00:31:47,680 Speaker 1: over the years. What kind of money you got, man, 634 00:31:47,760 --> 00:31:49,840 Speaker 1: it's I mean, it's amazing when you look at the 635 00:31:49,840 --> 00:31:53,720 Speaker 1: studies literally, Uh, the studies the bear out of how 636 00:31:53,760 --> 00:31:57,280 Speaker 1: important fees are. Uh. Warren Buffett himself and his last 637 00:31:57,320 --> 00:32:00,680 Speaker 1: shareholder letter said that fees are the most important thing 638 00:32:00,680 --> 00:32:03,320 Speaker 1: that you should be concerned about when you're investing because 639 00:32:03,440 --> 00:32:06,440 Speaker 1: those fees over time, just that small difference between point 640 00:32:06,480 --> 00:32:10,440 Speaker 1: two and one point one two is great enough to 641 00:32:10,800 --> 00:32:15,320 Speaker 1: have drastic effects on your retirement because of the magic 642 00:32:15,320 --> 00:32:19,960 Speaker 1: of compounding interest over time. That gap in fees that 643 00:32:20,040 --> 00:32:22,680 Speaker 1: you'll pay by being a Vanguard instead of being with 644 00:32:22,720 --> 00:32:25,520 Speaker 1: one of the bigger players that advertises more on TV 645 00:32:26,120 --> 00:32:31,120 Speaker 1: will have mega effects on how well you can retire. Yeah, 646 00:32:31,120 --> 00:32:33,280 Speaker 1: And so I mean, if you guys don't know Warren Buffett, 647 00:32:33,360 --> 00:32:36,000 Speaker 1: I mean he's like the at this point though, I think, 648 00:32:36,040 --> 00:32:38,440 Speaker 1: like the fourth richest man in the like in the world. Right, 649 00:32:38,800 --> 00:32:40,800 Speaker 1: does does he have anything to do with Vanguard? Like 650 00:32:41,160 --> 00:32:43,040 Speaker 1: he doesn't own it or anything, right, No, no, no no, no, 651 00:32:43,240 --> 00:32:46,479 Speaker 1: So his company is uh Berkshire Hathaway. Yeah, and and 652 00:32:46,480 --> 00:32:51,240 Speaker 1: it Warren Buffett essentially is saying anomaly. He's like a 653 00:32:52,080 --> 00:32:57,400 Speaker 1: he's he's this investing genius basically literally, Yeah, a guru stockpicker. 654 00:32:57,560 --> 00:32:59,240 Speaker 1: And uh. And that's another thing we need to talk 655 00:32:59,240 --> 00:33:02,560 Speaker 1: about really quickly is how do you pick the stocks 656 00:33:02,600 --> 00:33:04,600 Speaker 1: that you're going to invest in. Because we talked about 657 00:33:04,600 --> 00:33:07,720 Speaker 1: these vehicles, but inside of those vehicles are certainly you 658 00:33:07,720 --> 00:33:10,720 Speaker 1: want to pick low cost funds. But am I just 659 00:33:10,800 --> 00:33:12,840 Speaker 1: investing in individual stocks? Do I buy like you know, 660 00:33:13,880 --> 00:33:16,720 Speaker 1: Cola and percent Facebook or what? Yeah? So these vehicles 661 00:33:16,720 --> 00:33:19,360 Speaker 1: that that we're talking about four one K that's a vehicle, 662 00:33:19,640 --> 00:33:21,920 Speaker 1: a roth ira or a traditional ira or a set 663 00:33:21,960 --> 00:33:24,400 Speaker 1: these are all the different vehicles. But within those vehicles 664 00:33:24,520 --> 00:33:26,520 Speaker 1: you that money is in there. And then you then 665 00:33:26,560 --> 00:33:30,880 Speaker 1: purchase funds, mutual funds or stock stocks or et s, 666 00:33:31,680 --> 00:33:35,400 Speaker 1: exchange traded funds or bonds. And yeah, so let's let's 667 00:33:35,400 --> 00:33:38,080 Speaker 1: talk about maybe what what we put in ours? Sure, 668 00:33:38,440 --> 00:33:41,960 Speaker 1: so I will tell you exactly how am I invested? Yeah, 669 00:33:42,000 --> 00:33:44,600 Speaker 1: I'm about so as well, I'm ready inside of my 670 00:33:44,640 --> 00:33:48,000 Speaker 1: four one K and inside of my IRA, I am 671 00:33:48,040 --> 00:33:54,320 Speaker 1: fully invested in one fund that is the Vanguard vt 672 00:33:54,680 --> 00:33:57,280 Speaker 1: s A X fund, which has an expense ratio of 673 00:33:57,400 --> 00:34:02,040 Speaker 1: point oh four and is in vested in thirty six 674 00:34:02,120 --> 00:34:07,800 Speaker 1: hundred US companies. So it has it gives me this diversity, 675 00:34:08,000 --> 00:34:11,480 Speaker 1: crazy diverse. Basically, it's it's like an entire stock market 676 00:34:11,520 --> 00:34:15,600 Speaker 1: funds Like basically it's meant some mirror the entire stock market. Yes, 677 00:34:15,800 --> 00:34:18,000 Speaker 1: like any company that's traded on the market. And because 678 00:34:18,120 --> 00:34:19,600 Speaker 1: I don't know if most people know this, but like 679 00:34:19,640 --> 00:34:24,800 Speaker 1: the Dow Jones UH, that's often quoted by CNBC or whatever. 680 00:34:24,800 --> 00:34:27,480 Speaker 1: You're watching the down drop this many points today, Well, 681 00:34:27,480 --> 00:34:30,040 Speaker 1: the Dow is actually only thirty stocks. I don't know 682 00:34:30,080 --> 00:34:32,640 Speaker 1: if you knew that, UM, and the SNP five hundred 683 00:34:32,680 --> 00:34:34,719 Speaker 1: would be a much better thing to quote because that's 684 00:34:35,200 --> 00:34:38,160 Speaker 1: five of the biggest stocks on the U stock market. Uh. 685 00:34:38,200 --> 00:34:40,799 Speaker 1: And then this vt s A X fund that I 686 00:34:40,880 --> 00:34:44,640 Speaker 1: invest completely in. Every single penny of my funds is 687 00:34:44,680 --> 00:34:48,960 Speaker 1: in that UH is thirty six hundred U s stocks. 688 00:34:48,960 --> 00:34:51,960 Speaker 1: So it's literally like you can't really get much more 689 00:34:51,960 --> 00:34:55,279 Speaker 1: diverse than that. Yeah, and actually a hundred percent of 690 00:34:55,320 --> 00:34:57,799 Speaker 1: what we have or what I'm invested in with my 691 00:34:57,920 --> 00:35:00,719 Speaker 1: roth Ira is the e t F of elevalent of that, 692 00:35:00,840 --> 00:35:05,480 Speaker 1: which is VOO, which like v O O H. And 693 00:35:05,880 --> 00:35:08,480 Speaker 1: basically I picked that because I saw an article with 694 00:35:08,520 --> 00:35:10,520 Speaker 1: warm Buffett again this and this is an article from 695 00:35:10,520 --> 00:35:14,120 Speaker 1: like years ago, but he recommended it, and it's a 696 00:35:14,200 --> 00:35:17,719 Speaker 1: quote by him again, and he was talking specifically to 697 00:35:17,800 --> 00:35:19,960 Speaker 1: somebody in his company because they're like, oh, should we 698 00:35:20,120 --> 00:35:23,799 Speaker 1: buy stocks specifically like for Berkshire Hathaway, like you know, 699 00:35:23,880 --> 00:35:26,440 Speaker 1: warm Buffet's company, And he straight up was like, no, 700 00:35:26,600 --> 00:35:30,399 Speaker 1: you shouldn't do that. Instead, you should do this, which 701 00:35:30,520 --> 00:35:33,719 Speaker 1: is you know, it's an index fund, and again like 702 00:35:33,760 --> 00:35:35,480 Speaker 1: you know, like yours, it's it's the e t F equivalent, 703 00:35:35,520 --> 00:35:37,879 Speaker 1: and so it's got an expense ratio of point zero 704 00:35:37,920 --> 00:35:41,000 Speaker 1: four percent, which I don't think you can beat that, 705 00:35:41,680 --> 00:35:46,160 Speaker 1: and you're gonna basically outperform anybody that's out there thinking that, oh, well, 706 00:35:46,160 --> 00:35:48,840 Speaker 1: I know what stocks to pick based on the news 707 00:35:48,960 --> 00:35:51,080 Speaker 1: or based on some inside or info that you have. 708 00:35:51,520 --> 00:35:54,319 Speaker 1: You're not going to be able to beat those index funds. Ye. 709 00:35:54,400 --> 00:35:56,839 Speaker 1: So essentially, Matt, the things that you and I are 710 00:35:56,840 --> 00:36:01,000 Speaker 1: both invested in their incredibly similar, almost no difference at all. 711 00:36:01,280 --> 00:36:04,360 Speaker 1: And the two major factors that make what we're invested 712 00:36:04,400 --> 00:36:08,680 Speaker 1: in the best are the low expense ratio factor and 713 00:36:08,880 --> 00:36:13,200 Speaker 1: the broadly diversified factor. So, uh, if you can pick 714 00:36:13,280 --> 00:36:17,440 Speaker 1: things that are invested in a wide swath of stocks 715 00:36:18,160 --> 00:36:20,840 Speaker 1: um and you also pick something that has an extremely 716 00:36:20,840 --> 00:36:23,600 Speaker 1: low expense ratio, you're gonna do well over time. Those 717 00:36:23,600 --> 00:36:26,440 Speaker 1: are literally the two most important factors when you're choosing 718 00:36:26,719 --> 00:36:30,000 Speaker 1: the specific fund or e T f UH to be 719 00:36:30,080 --> 00:36:33,200 Speaker 1: invested in inside of those vehicles that we talked about. Yeah, 720 00:36:33,200 --> 00:36:34,640 Speaker 1: So if you're lucky enough to have a four O 721 00:36:34,760 --> 00:36:37,400 Speaker 1: n K that allows you to to have access and 722 00:36:37,480 --> 00:36:40,440 Speaker 1: to purchase Vanguard funds, man, good for you. You like 723 00:36:40,600 --> 00:36:43,880 Speaker 1: Joel are in a great spot, especially if you have 724 00:36:43,920 --> 00:36:46,879 Speaker 1: a match. But otherwise, if you're like me and you've 725 00:36:46,880 --> 00:36:49,160 Speaker 1: got to sit up your own account, which is totally easy, 726 00:36:49,280 --> 00:36:51,960 Speaker 1: but go to the site like Vanguard and open your 727 00:36:51,960 --> 00:36:55,360 Speaker 1: account there and so you know, you'll open your account 728 00:36:55,360 --> 00:36:56,920 Speaker 1: and then your account sitting there, and then you can 729 00:36:56,960 --> 00:36:59,680 Speaker 1: fund that account, and if you're scared and you don't 730 00:36:59,680 --> 00:37:01,400 Speaker 1: what to do, your money will just sit there as cash. 731 00:37:01,560 --> 00:37:04,480 Speaker 1: And so I'm just trying to explain basically the system. 732 00:37:04,520 --> 00:37:07,120 Speaker 1: But like your money is still within that vehicle. It's 733 00:37:07,120 --> 00:37:10,239 Speaker 1: just sitting there as cash, which isn't great, but like 734 00:37:10,320 --> 00:37:12,120 Speaker 1: that's better than nothing. What what we want you to 735 00:37:12,160 --> 00:37:13,680 Speaker 1: do to then do is to take that, you know, 736 00:37:13,800 --> 00:37:18,360 Speaker 1: take the cash and that account and then purchase some funds, uh, 737 00:37:18,600 --> 00:37:21,840 Speaker 1: like what Joel has, which is the vt S A 738 00:37:22,280 --> 00:37:26,560 Speaker 1: X fund, or mine, which is the v O O fund. Yeah, 739 00:37:26,719 --> 00:37:29,120 Speaker 1: back to warm Buffet real quick. He made a bet. 740 00:37:29,160 --> 00:37:31,319 Speaker 1: The man's a genius, he's a genius, and he made 741 00:37:31,320 --> 00:37:33,759 Speaker 1: a bet against these New York this New York hedge fund, 742 00:37:34,000 --> 00:37:35,880 Speaker 1: and they each put up a million dollars and it 743 00:37:35,920 --> 00:37:38,160 Speaker 1: was going to go to charity, right whoever wins. And 744 00:37:38,200 --> 00:37:40,279 Speaker 1: the hedge fund was like, we'll kick your butt. We 745 00:37:40,280 --> 00:37:43,080 Speaker 1: can invest way better than you, and nobody can invest 746 00:37:43,400 --> 00:37:45,920 Speaker 1: better than Warmbufett. But warm Buffett said, you know what, 747 00:37:45,960 --> 00:37:49,719 Speaker 1: I'm gonna put all my money in the Vanguard smp 748 00:37:50,960 --> 00:37:53,960 Speaker 1: E t F and so exactly what you're invested in, Matt, 749 00:37:54,320 --> 00:37:56,480 Speaker 1: and so uh, warm Buffett puts some money in that, 750 00:37:56,760 --> 00:37:58,680 Speaker 1: the hedge fund puts their money and all sorts of 751 00:37:58,880 --> 00:38:03,160 Speaker 1: crazy things at stocks and with high fees. Yeah, all 752 00:38:03,400 --> 00:38:05,600 Speaker 1: the all the stuff and for about it. For about 753 00:38:05,680 --> 00:38:08,000 Speaker 1: like nine months to a year, the hedge fund was 754 00:38:08,000 --> 00:38:10,960 Speaker 1: doing okay, they were doing all right. Then it was 755 00:38:11,000 --> 00:38:12,560 Speaker 1: like I think it was like an eight or tenure bet. 756 00:38:12,640 --> 00:38:14,600 Speaker 1: But for the next like eight or nine years tenure 757 00:38:14,600 --> 00:38:20,600 Speaker 1: Like yeah, Warren Buffett proceeds to crush completely crushed the competition. 758 00:38:21,160 --> 00:38:23,960 Speaker 1: And it just goes to show you that these incredibly 759 00:38:24,040 --> 00:38:27,680 Speaker 1: high paid hedge fund managers couldn't even come close to 760 00:38:27,760 --> 00:38:33,160 Speaker 1: competing with this amazing, low cost, broadly diversified e t 761 00:38:33,360 --> 00:38:35,759 Speaker 1: F that just mirrors the stock market. There's so many 762 00:38:35,760 --> 00:38:39,920 Speaker 1: good reasons for investing, specifically in something low cost and 763 00:38:39,920 --> 00:38:42,839 Speaker 1: well diversified. We could do a whole show just on that, 764 00:38:42,960 --> 00:38:45,919 Speaker 1: and we probably will say, will yeah. And something else 765 00:38:45,960 --> 00:38:47,799 Speaker 1: that he'll say too, is that you want a dollar 766 00:38:47,840 --> 00:38:50,440 Speaker 1: cost average when you buy right, which is like that 767 00:38:50,480 --> 00:38:52,319 Speaker 1: means not taking all your money and just dumping it 768 00:38:52,400 --> 00:38:54,480 Speaker 1: all at once and then not touching it again for 769 00:38:54,520 --> 00:38:56,520 Speaker 1: another ten years, Like you do that if you're going 770 00:38:56,560 --> 00:39:00,000 Speaker 1: to bet a million bucks with some hedge fund managers. Uh. 771 00:39:00,080 --> 00:39:02,680 Speaker 1: But what you and I do, uh is that every month, 772 00:39:02,680 --> 00:39:05,840 Speaker 1: basically you have a set amount that you are buying 773 00:39:05,840 --> 00:39:08,239 Speaker 1: into that fund. So if it goes up some well, 774 00:39:08,280 --> 00:39:09,799 Speaker 1: you know, you buy a little you got to buy 775 00:39:09,800 --> 00:39:11,960 Speaker 1: a little bit less because it costs more. But then 776 00:39:12,040 --> 00:39:14,600 Speaker 1: like the next month, when it dips down, your money 777 00:39:14,600 --> 00:39:17,839 Speaker 1: goes a lot further. And so basically what happens is 778 00:39:18,120 --> 00:39:21,120 Speaker 1: your your prices average out. Yeah, and I think there's 779 00:39:21,280 --> 00:39:24,360 Speaker 1: uh some good reason for dollar cost averaging, but I 780 00:39:24,400 --> 00:39:27,239 Speaker 1: also think there's good wisdom to the sooner you get 781 00:39:27,239 --> 00:39:29,319 Speaker 1: in the better um. And so if you have a 782 00:39:29,360 --> 00:39:30,719 Speaker 1: lump sum to put it in all at one time, 783 00:39:30,800 --> 00:39:32,759 Speaker 1: let's say it's five grand or ten grand or something 784 00:39:32,840 --> 00:39:34,239 Speaker 1: that I don't think that's a huge deal. I think 785 00:39:34,239 --> 00:39:36,080 Speaker 1: it's okay to go all in all that ontesh when 786 00:39:36,080 --> 00:39:38,879 Speaker 1: you're talking thirty years years, I mean it'll be your 787 00:39:38,880 --> 00:39:41,439 Speaker 1: You'll be fine. Yeah, who cares. But overall that works 788 00:39:41,440 --> 00:39:43,400 Speaker 1: best for most people anyway, because let's say you know 789 00:39:43,400 --> 00:39:45,520 Speaker 1: you're getting paid every two weeks, you know, put in 790 00:39:45,560 --> 00:39:48,600 Speaker 1: a small chunk every two weeks, and so that's kind 791 00:39:48,600 --> 00:39:49,880 Speaker 1: of the way that most people are set up in 792 00:39:49,880 --> 00:39:52,080 Speaker 1: their four oh one k or you know, just a 793 00:39:52,600 --> 00:39:54,560 Speaker 1: The great thing about Vanguard is you know, in your 794 00:39:54,640 --> 00:39:56,799 Speaker 1: roth Ira, you can say, you know what, take this 795 00:39:56,840 --> 00:40:01,280 Speaker 1: amount out and and buy this particular et for mutual 796 00:40:01,280 --> 00:40:03,600 Speaker 1: fund on this day of the month. And so it's 797 00:40:03,600 --> 00:40:05,400 Speaker 1: pretty sweet. You can set it up and it's super 798 00:40:05,440 --> 00:40:07,680 Speaker 1: simple and it just kind of comes out like any 799 00:40:07,680 --> 00:40:10,400 Speaker 1: one of your other bills, except for that's not a 800 00:40:10,400 --> 00:40:13,960 Speaker 1: bill that's going towards your future. So, Matt, how does 801 00:40:14,000 --> 00:40:16,000 Speaker 1: this differ from like stock trading, And like, you know, 802 00:40:16,080 --> 00:40:18,040 Speaker 1: day trading was really popular for a few years back 803 00:40:18,040 --> 00:40:20,399 Speaker 1: then in the nineties, late nineties, right before they get 804 00:40:20,400 --> 00:40:22,080 Speaker 1: a dot com, and there's still people doing it. There's 805 00:40:22,080 --> 00:40:24,520 Speaker 1: actually a lot more people doing it now with Yeah, 806 00:40:24,520 --> 00:40:27,239 Speaker 1: with bitcoin, people are like Oliver with bitcoin and just 807 00:40:27,280 --> 00:40:28,920 Speaker 1: like a whole another podcast, Man, I don't want to 808 00:40:28,920 --> 00:40:31,000 Speaker 1: get into it. Yeah, just the general rise of the 809 00:40:31,000 --> 00:40:33,239 Speaker 1: stock market. You know, Oh the stock market is super hot. 810 00:40:33,320 --> 00:40:36,400 Speaker 1: Let me start borrowing money. So yeah, we invest in 811 00:40:36,480 --> 00:40:39,600 Speaker 1: the stock market like we do with real estate, which 812 00:40:39,640 --> 00:40:42,000 Speaker 1: is we very much take a buy and hold long 813 00:40:42,160 --> 00:40:44,719 Speaker 1: term approach to it. You can try to take advantages 814 00:40:44,719 --> 00:40:47,560 Speaker 1: and time the market in the system. Uh you know 815 00:40:47,600 --> 00:40:49,719 Speaker 1: what you with what you see are these like short 816 00:40:49,840 --> 00:40:52,359 Speaker 1: term swings and sure you might make a buck here 817 00:40:52,400 --> 00:40:54,799 Speaker 1: and there, but you also it's crazy high risk, and 818 00:40:54,880 --> 00:40:57,120 Speaker 1: when we're talking about our retirement, we are not in 819 00:40:57,480 --> 00:41:00,280 Speaker 1: the business to take risks. We're just looking for a long, long, 820 00:41:00,719 --> 00:41:06,200 Speaker 1: steady growth where you know where the tortoise wins every time. Yeah, 821 00:41:06,239 --> 00:41:09,640 Speaker 1: and uh again, our mentality is set it and forget it. 822 00:41:09,719 --> 00:41:12,279 Speaker 1: So keep putting in, keep doing it, keep miying. And 823 00:41:12,320 --> 00:41:14,439 Speaker 1: you know what I think, John Bogel said this, who 824 00:41:14,560 --> 00:41:17,200 Speaker 1: is the founder of Vanguard, A brilliant man who has 825 00:41:17,320 --> 00:41:21,560 Speaker 1: changed life for America as we know it, like for real. 826 00:41:21,960 --> 00:41:25,880 Speaker 1: I don't think that's an overstatement. He said. Essentially, contribute 827 00:41:25,880 --> 00:41:28,400 Speaker 1: to your four O one K for forty years, just 828 00:41:28,480 --> 00:41:31,960 Speaker 1: keep doing it and never check your balance, and then 829 00:41:32,040 --> 00:41:34,759 Speaker 1: when you retire, open up that envelope to see what 830 00:41:34,840 --> 00:41:39,600 Speaker 1: your balance is and you will be flabbergasted. You'll be shocked. Um, 831 00:41:39,640 --> 00:41:42,080 Speaker 1: and he's right, that's the best way to do it. 832 00:41:42,280 --> 00:41:44,600 Speaker 1: Don't look at it, don't tinker with it, don't toy 833 00:41:44,680 --> 00:41:48,200 Speaker 1: with it, just invest in it. And then after forty 834 00:41:48,280 --> 00:41:52,279 Speaker 1: years or thirty years, hopefully you'll be retiring sooner than forty. 835 00:41:52,920 --> 00:41:56,680 Speaker 1: But after doing that, you're gonna be a rich person. 836 00:41:57,120 --> 00:42:00,000 Speaker 1: And uh, you're gonna be well off if you continue. 837 00:42:00,080 --> 00:42:02,560 Speaker 1: You to run the race. Continue to put the money in, 838 00:42:02,920 --> 00:42:05,160 Speaker 1: you're gonna be well off. And like I said, Matt, 839 00:42:05,200 --> 00:42:08,759 Speaker 1: the fund that I'm particularly invested in is invested in 840 00:42:08,840 --> 00:42:15,120 Speaker 1: over stocks, trading individual stocks, buying Coca Cola or Apple 841 00:42:15,239 --> 00:42:18,839 Speaker 1: or Facebook. Uh. Yeah, that's like the hot one right now. Man. 842 00:42:19,000 --> 00:42:21,080 Speaker 1: You know what looked good to buy thirty years ago 843 00:42:21,200 --> 00:42:23,759 Speaker 1: was Xerox. There's so many of those stocks that you're like, man, 844 00:42:23,840 --> 00:42:26,840 Speaker 1: that this company can never fail. Uh, that this company 845 00:42:26,920 --> 00:42:29,800 Speaker 1: is good to go for a long time. But things change, 846 00:42:29,840 --> 00:42:32,920 Speaker 1: and nobody knew that Google or Facebook or Apple was 847 00:42:32,920 --> 00:42:36,400 Speaker 1: going to do what they've done. But that's why you 848 00:42:36,480 --> 00:42:39,400 Speaker 1: don't make one stock bets. And so you put your 849 00:42:39,400 --> 00:42:43,640 Speaker 1: money across the broad market spectrum and if somebody loses, 850 00:42:43,880 --> 00:42:47,400 Speaker 1: you barely lose. And if somebody wins, you share in 851 00:42:47,480 --> 00:42:51,880 Speaker 1: that win. Do not start betting your retirement on individual companies. 852 00:42:52,280 --> 00:42:56,040 Speaker 1: That's when you're bound to fail. Excellent, nice man. Yeah, 853 00:42:56,080 --> 00:42:59,640 Speaker 1: So back to the beer, because we're drinking two beers 854 00:42:59,760 --> 00:43:04,359 Speaker 1: from Ironmonger Brewing Company today. I'm mostly just drinking one. Yeah, 855 00:43:04,440 --> 00:43:07,319 Speaker 1: the Nvil double I p A. I'm at the very 856 00:43:07,360 --> 00:43:09,759 Speaker 1: bottom of that over here, and then I've got uh, 857 00:43:09,800 --> 00:43:12,359 Speaker 1: I've got a little bit left of the Damascus, which 858 00:43:12,400 --> 00:43:16,280 Speaker 1: is also also very good. Yeah, the Damascus is great. 859 00:43:16,960 --> 00:43:20,879 Speaker 1: The anvil is perfect for eight point six percent. Man, 860 00:43:20,960 --> 00:43:23,640 Speaker 1: Like you really don't taste that and you could. I mean, 861 00:43:23,719 --> 00:43:26,080 Speaker 1: I think we drank both drank our piets. Mind's gone 862 00:43:26,440 --> 00:43:29,239 Speaker 1: uh really quickly. It was so DearS maybe more than 863 00:43:29,320 --> 00:43:32,560 Speaker 1: mine for once, for once. Man, their beers are great. 864 00:43:32,600 --> 00:43:35,160 Speaker 1: I love getting a crowler And thanks to Time Margaret 865 00:43:35,239 --> 00:43:38,000 Speaker 1: for providing the beers tonight. All right, man, so let's 866 00:43:38,040 --> 00:43:40,440 Speaker 1: do a quick recap then on what we talked about today. 867 00:43:40,800 --> 00:43:42,719 Speaker 1: All right, there's a couple of vehicles that you need 868 00:43:42,760 --> 00:43:46,000 Speaker 1: to know about when you're considering investing. Uh. And by 869 00:43:46,040 --> 00:43:48,960 Speaker 1: the way, investing is simpler than you think it is. Uh, 870 00:43:48,960 --> 00:43:51,240 Speaker 1: And that's why we did this podcast. So the vehicles, 871 00:43:51,640 --> 00:43:53,800 Speaker 1: the four oh one K, that is the main vehicle. 872 00:43:53,920 --> 00:43:56,440 Speaker 1: If you work at a job and your employer says 873 00:43:56,640 --> 00:43:59,120 Speaker 1: we're gonna offer you a retirement account, it's a four 874 00:43:59,120 --> 00:44:02,560 Speaker 1: oh one K, and most employers will offer you a 875 00:44:02,600 --> 00:44:04,640 Speaker 1: match in addition. So if you put in a certain 876 00:44:04,680 --> 00:44:08,000 Speaker 1: percentage of your pay, they will put in a certain 877 00:44:08,040 --> 00:44:11,240 Speaker 1: percentage in addition. Yeah, so if they are offering that match. 878 00:44:11,320 --> 00:44:13,239 Speaker 1: Take it every single time. That is the number one 879 00:44:13,280 --> 00:44:15,680 Speaker 1: thing you need to do is get that match. You 880 00:44:15,760 --> 00:44:19,000 Speaker 1: will not find a better return on your money anywhere. Yeah. 881 00:44:19,160 --> 00:44:21,440 Speaker 1: So after the four one K or say your company 882 00:44:21,480 --> 00:44:23,120 Speaker 1: doesn't provide a four one K or you might be 883 00:44:23,120 --> 00:44:25,160 Speaker 1: self employed, the next thing you want to look at 884 00:44:25,200 --> 00:44:28,160 Speaker 1: our I r A s whether that be a traditional 885 00:44:28,200 --> 00:44:31,360 Speaker 1: ira or a roth ira. For most folks, especially with 886 00:44:31,400 --> 00:44:34,200 Speaker 1: our current tax law that's passed, you need to look 887 00:44:34,200 --> 00:44:36,880 Speaker 1: at a roth ira. Yeah, a roth ira is awesome. 888 00:44:36,920 --> 00:44:39,839 Speaker 1: It means you are getting taxed on your income now, 889 00:44:39,880 --> 00:44:42,640 Speaker 1: but you never ever ever pay tax on that money 890 00:44:42,760 --> 00:44:45,560 Speaker 1: ever again, even the growth of those funds. Yeah, it 891 00:44:45,560 --> 00:44:48,920 Speaker 1: does have a contribution limit of so you might hit 892 00:44:48,960 --> 00:44:53,600 Speaker 1: that maximum that cap pretty soon, but definitely do that first, 893 00:44:53,800 --> 00:44:55,839 Speaker 1: and then you can start looking at a traditional ira. 894 00:44:56,080 --> 00:44:58,439 Speaker 1: And those are the vehicles, but let's quickly talk about 895 00:44:58,440 --> 00:45:02,040 Speaker 1: the passengers in that vehicle. Those are low cost, well 896 00:45:02,040 --> 00:45:07,480 Speaker 1: diversified funds. I personally am invested in Vanguard vt S 897 00:45:07,600 --> 00:45:10,240 Speaker 1: a X funds. You can look that up on Google 898 00:45:10,320 --> 00:45:13,160 Speaker 1: on Vanguard site, almost no cost to it at all, 899 00:45:13,680 --> 00:45:18,440 Speaker 1: and invested in thirty six hundred U S stocks it's incredible. 900 00:45:18,480 --> 00:45:20,440 Speaker 1: You can't get much better than that. Yeah. The e 901 00:45:20,560 --> 00:45:23,600 Speaker 1: t F, which is an exchange traded fund, which is 902 00:45:23,640 --> 00:45:25,759 Speaker 1: basically just think of it as an equivalent to to 903 00:45:25,840 --> 00:45:28,800 Speaker 1: a Joel mentioned I'm invested in vou v o O 904 00:45:29,440 --> 00:45:32,480 Speaker 1: pretty much the exact same thing, except that there's a 905 00:45:32,520 --> 00:45:36,920 Speaker 1: lower bar of entry there. Yeah. So the best thing 906 00:45:37,000 --> 00:45:40,840 Speaker 1: to do invest today, Get started, guys, don't wait. And 907 00:45:40,960 --> 00:45:44,640 Speaker 1: that's the biggest mistake people make is waiting. Yeah, I'll 908 00:45:44,680 --> 00:45:47,520 Speaker 1: get to that next week, tomorrow, whatever, uh, and it 909 00:45:47,640 --> 00:45:51,359 Speaker 1: never comes. So start investing now. It's not gonna get easier, nope, 910 00:45:51,719 --> 00:45:53,960 Speaker 1: and make sure you're financially prepared for it, because you 911 00:45:54,000 --> 00:45:55,640 Speaker 1: don't want to touch this money when you put it 912 00:45:55,719 --> 00:45:59,279 Speaker 1: away for at least twenty years. Right, So this is 913 00:45:59,360 --> 00:46:03,000 Speaker 1: long term money we're talking about. But there's nothing better 914 00:46:03,080 --> 00:46:05,040 Speaker 1: that you can do to start saving for your future 915 00:46:05,360 --> 00:46:08,800 Speaker 1: than investing in low cost mutual funds or et s 916 00:46:08,920 --> 00:46:12,719 Speaker 1: through a company like Vanguard today. Yeah, thanks so much 917 00:46:12,760 --> 00:46:15,520 Speaker 1: everyone for listening. Our home on the web is how 918 00:46:15,640 --> 00:46:17,840 Speaker 1: to money dot com. Check it out. We'll have some 919 00:46:17,880 --> 00:46:20,440 Speaker 1: show notes up there for you. I don't forget to 920 00:46:20,600 --> 00:46:24,520 Speaker 1: review and subscribe on iTunes or wherever you get your podcasts, 921 00:46:24,920 --> 00:46:28,000 Speaker 1: and until next time, Joel, best friends out, best friends Out,