1 00:00:00,040 --> 00:00:02,920 Speaker 1: Welcome to How the Money. I'm Joel, I'm Matt, and 2 00:00:02,920 --> 00:00:04,920 Speaker 1: today we're answering your listener questions. 3 00:00:24,000 --> 00:00:28,479 Speaker 2: That's right, buddy, it's personal finance time. It's always personal finance. 4 00:00:28,480 --> 00:00:31,560 Speaker 2: The clock over here at How to Money PFT for sure. 5 00:00:31,840 --> 00:00:34,240 Speaker 1: Uh, we are in fact that it's its own distinct 6 00:00:34,240 --> 00:00:35,280 Speaker 1: time zone, Matt, PFT. 7 00:00:35,520 --> 00:00:38,960 Speaker 2: It's maybe just like one click beyond Pacific, like somewhere 8 00:00:38,960 --> 00:00:43,000 Speaker 2: in between Hawaii and California. Yeah, is a PFT. That's 9 00:00:43,000 --> 00:00:46,520 Speaker 2: where we resigne. But we do have several listener questions 10 00:00:46,560 --> 00:00:48,960 Speaker 2: to get to. We've got a listener who's considering parlaying 11 00:00:49,040 --> 00:00:53,080 Speaker 2: her real estate equity gains into stocks. She's thinking about 12 00:00:53,120 --> 00:00:56,200 Speaker 2: selling while she feels ahead, while she's on top. Another 13 00:00:56,200 --> 00:00:59,520 Speaker 2: listener is interested in early retirement. He wants that life 14 00:00:59,560 --> 00:01:01,600 Speaker 2: of lee. We're gonna explain to him how he can 15 00:01:01,640 --> 00:01:04,800 Speaker 2: get that. And another listener is interested in unloading a 16 00:01:04,920 --> 00:01:08,320 Speaker 2: car with a loan. These are new waters for him 17 00:01:08,400 --> 00:01:10,760 Speaker 2: and his wife, so he's got some specific questions as 18 00:01:10,760 --> 00:01:12,959 Speaker 2: to how it is he should go about pulling that off. 19 00:01:12,959 --> 00:01:15,440 Speaker 2: We'll get to those plus more during today's episode. 20 00:01:15,520 --> 00:01:18,360 Speaker 1: Plus pets are expensive, we'll talk about that too, Okay, 21 00:01:18,400 --> 00:01:21,559 Speaker 1: Froogler cheap for you real quick? Yes please Figler chiefs. 22 00:01:21,600 --> 00:01:24,040 Speaker 1: So you know that you're super into the health space. 23 00:01:24,120 --> 00:01:26,840 Speaker 1: Me not so much, but I know that sauna's especially 24 00:01:26,920 --> 00:01:28,160 Speaker 1: because of my Norwegian heritage. 25 00:01:28,240 --> 00:01:32,400 Speaker 2: You can downplay your draw to becoming like Bay Area 26 00:01:32,560 --> 00:01:35,120 Speaker 2: tech bro who wants to live forever, but we know, 27 00:01:35,160 --> 00:01:36,000 Speaker 2: I know it's in your blood. 28 00:01:36,080 --> 00:01:39,600 Speaker 1: Yeah, not interested, but I do think that I've heard 29 00:01:39,680 --> 00:01:41,560 Speaker 1: that saunas are good for your health. Literally, haven't read 30 00:01:41,600 --> 00:01:43,680 Speaker 1: on it, up on it much, haven't listened to the 31 00:01:43,680 --> 00:01:46,200 Speaker 1: podcast about it. But I've also been like, ooh, I 32 00:01:46,280 --> 00:01:50,160 Speaker 1: like warmth, and so I like warm wet air. So 33 00:01:50,200 --> 00:01:52,960 Speaker 1: saunas are of interest to me, unlike the cold plunge, 34 00:01:53,000 --> 00:01:55,960 Speaker 1: which just sounds like pain and terribleness. But okay, So 35 00:01:56,440 --> 00:01:59,000 Speaker 1: I have been looking over the years and I'm like, oh, 36 00:01:59,000 --> 00:02:02,800 Speaker 1: Costco sales, you can get a pretty decent sauna for 37 00:02:02,960 --> 00:02:05,040 Speaker 1: like two grand twenty five hundred bucks. I was like, Okay, 38 00:02:05,040 --> 00:02:07,680 Speaker 1: that'd be kind of cool. You know, maybe i'd use 39 00:02:07,720 --> 00:02:09,280 Speaker 1: it three four nights a week and be a nice 40 00:02:09,280 --> 00:02:11,320 Speaker 1: way to wind down before bed. But you know what 41 00:02:11,400 --> 00:02:14,520 Speaker 1: I found while perusing Costco's website. You tell me if 42 00:02:14,520 --> 00:02:19,200 Speaker 1: this is fouler cheap a portable sauna. So it's basically 43 00:02:19,240 --> 00:02:22,680 Speaker 1: a fabric tent that you hook like the acouter moments 44 00:02:22,720 --> 00:02:25,480 Speaker 1: up to it takes like fifteen minutes to get hot 45 00:02:25,520 --> 00:02:27,880 Speaker 1: and steamy, and then you sit in it. I could 46 00:02:27,880 --> 00:02:30,120 Speaker 1: even like literally set it up in my bedroom and 47 00:02:30,120 --> 00:02:31,919 Speaker 1: then take it down when I'm done. Thoughts on the 48 00:02:31,960 --> 00:02:34,840 Speaker 1: portable song Okay, full disclosure. Hundred twenty bucks by the way, 49 00:02:34,880 --> 00:02:37,000 Speaker 1: big difference, that's right, one hundred and twenty dollars. A 50 00:02:37,000 --> 00:02:38,120 Speaker 1: little peak behind the curtain. 51 00:02:38,160 --> 00:02:40,000 Speaker 2: You told me about this a couple of weeks ago 52 00:02:40,040 --> 00:02:41,840 Speaker 2: when you were I guess maybe when it first popped 53 00:02:41,840 --> 00:02:43,720 Speaker 2: into your head and you're like, hey, what do you 54 00:02:43,720 --> 00:02:45,919 Speaker 2: think about this? And I'll be honest, when you first 55 00:02:45,919 --> 00:02:48,240 Speaker 2: told me, I thought it was a dumb idea. I 56 00:02:48,280 --> 00:02:50,680 Speaker 2: thought Hare's Joel with another one of the silly like 57 00:02:50,680 --> 00:02:52,760 Speaker 2: when you were thinking out when you're thinking about getting 58 00:02:52,800 --> 00:02:55,639 Speaker 2: the like the portable hot tub inflatable Oh yeah thing. 59 00:02:55,680 --> 00:02:57,280 Speaker 2: This is maybe two years ago, which I never did 60 00:02:57,280 --> 00:02:58,840 Speaker 2: that either. That was the Black Friday deal that you 61 00:02:58,840 --> 00:03:01,640 Speaker 2: missed out on. Yeah, evidently they only sold like five. 62 00:03:01,480 --> 00:03:04,280 Speaker 1: Of them, Walmart. I'm so mad at you for screwing 63 00:03:04,280 --> 00:03:06,359 Speaker 1: me on Costco Walmart. 64 00:03:06,960 --> 00:03:09,040 Speaker 2: Okay, So originally I thought this was dumb, and then 65 00:03:09,080 --> 00:03:12,000 Speaker 2: I clicked over and went over to Costco's website to 66 00:03:12,080 --> 00:03:14,480 Speaker 2: check it out, and I will say I wasn't swayed 67 00:03:14,480 --> 00:03:16,280 Speaker 2: by how it looked because it also looks pretty dumb, 68 00:03:18,040 --> 00:03:20,600 Speaker 2: even though they do have this this in the pictures. 69 00:03:20,600 --> 00:03:22,760 Speaker 2: There's a male model or you know, like a dude 70 00:03:22,760 --> 00:03:25,720 Speaker 2: in it, and he looks like Hugh Jackman. It's like, 71 00:03:26,160 --> 00:03:28,040 Speaker 2: maybe you're thinking, oh, there's a tough guy that looks 72 00:03:28,040 --> 00:03:28,680 Speaker 2: like Wolverine. 73 00:03:28,680 --> 00:03:30,480 Speaker 1: Maybe I'll look like that after're using it myself. 74 00:03:31,080 --> 00:03:33,639 Speaker 2: But that also wasn't selling it for me. Uh What 75 00:03:33,720 --> 00:03:35,920 Speaker 2: sold it or what changed my mind slightly on it 76 00:03:36,080 --> 00:03:38,960 Speaker 2: was the fact that below those below the pop up 77 00:03:38,960 --> 00:03:41,200 Speaker 2: sauna that you're considering is they've got a whole bunch 78 00:03:41,240 --> 00:03:44,400 Speaker 2: of those big wooden barrel looking yeah, like the real 79 00:03:44,440 --> 00:03:47,560 Speaker 2: deal saunas. And at a minimum, you're looking at those 80 00:03:47,720 --> 00:03:51,040 Speaker 2: calls like three thousand dollars. Sure, basically more likely five 81 00:03:51,120 --> 00:03:52,680 Speaker 2: or six thousand dollars if you're wunning one of the 82 00:03:52,720 --> 00:03:54,800 Speaker 2: bigger ones were like Emily could sit in there with you, 83 00:03:54,880 --> 00:03:56,680 Speaker 2: that kind of thing. Maybe it's a whole family affair, 84 00:03:56,960 --> 00:03:59,280 Speaker 2: like what's his name from frozen at the trading post 85 00:04:00,400 --> 00:04:02,080 Speaker 2: there with this whole family we're taking on my business 86 00:04:02,120 --> 00:04:05,720 Speaker 2: meetings in the sauna. But there's so expensive, and when 87 00:04:05,720 --> 00:04:08,560 Speaker 2: you look at the financial impact that it would take, 88 00:04:08,600 --> 00:04:10,760 Speaker 2: not only from a financial standpoint but also the space, 89 00:04:10,920 --> 00:04:13,000 Speaker 2: it's almost like getting a pool table, yeah, or like 90 00:04:13,040 --> 00:04:16,240 Speaker 2: a piano, Like you are committing to this giant thing from. 91 00:04:16,160 --> 00:04:18,560 Speaker 1: A financial anispace perspective. Yeah, that's got that you have to. 92 00:04:18,480 --> 00:04:21,200 Speaker 2: Commit to being somewhere and you can't easily change your mind, 93 00:04:21,240 --> 00:04:25,200 Speaker 2: as opposed to trying out a sauna in a way 94 00:04:25,279 --> 00:04:27,919 Speaker 2: that if it doesn't work out, no big deal. But 95 00:04:28,000 --> 00:04:29,479 Speaker 2: I know for me personally, like I've only been in 96 00:04:29,440 --> 00:04:31,359 Speaker 2: a sauna a few times in my whole life, definitely 97 00:04:31,480 --> 00:04:34,359 Speaker 2: never on a regular, consistent kind of basis. So now 98 00:04:34,560 --> 00:04:37,560 Speaker 2: I think it's a totally legit way to test the waters. Okay, 99 00:04:37,640 --> 00:04:40,000 Speaker 2: I am one hundred percent fine with Did you order one? 100 00:04:40,080 --> 00:04:41,880 Speaker 2: I haven't, so it's been out of stock. Sadly. 101 00:04:42,440 --> 00:04:44,520 Speaker 1: It was like literally on sale for one twenty. I 102 00:04:44,520 --> 00:04:46,960 Speaker 1: think it's normally one fifty. I read the reviews four 103 00:04:47,000 --> 00:04:49,120 Speaker 1: point seven stars and I didn't just look at the 104 00:04:49,120 --> 00:04:52,360 Speaker 1: star level. I read the reviews and people, you're getting serious. 105 00:04:52,400 --> 00:04:53,839 Speaker 1: People seem to love it. If I mean, if it 106 00:04:53,839 --> 00:04:55,240 Speaker 1: was in stock, I would have bought it already for. 107 00:04:55,200 --> 00:04:57,799 Speaker 2: Sure, especially this time of year when it's cold outside. 108 00:04:57,800 --> 00:05:00,200 Speaker 2: The thought of sitting in like a warm to be 109 00:05:00,279 --> 00:05:06,119 Speaker 2: so good for your sinuses, like that wet, healing warm air. Yeah, 110 00:05:06,160 --> 00:05:07,120 Speaker 2: well it sounds so good. 111 00:05:07,120 --> 00:05:08,960 Speaker 1: I will say, if there's anybody out there listening who 112 00:05:09,040 --> 00:05:12,080 Speaker 1: has tried a portable sauna, let me know and you 113 00:05:12,200 --> 00:05:14,159 Speaker 1: get some feedback. Because I've read the reviews on some 114 00:05:14,160 --> 00:05:16,120 Speaker 1: of the other sites, and I guess what prevents me 115 00:05:16,200 --> 00:05:18,839 Speaker 1: from ordering from elsewhere is the return policy. And I know, 116 00:05:18,920 --> 00:05:21,160 Speaker 1: like the zippers are terrible on some of them or whatever, 117 00:05:21,200 --> 00:05:23,200 Speaker 1: so it broke in three uses, and I don't want 118 00:05:23,200 --> 00:05:24,800 Speaker 1: to do that. But I'm like, if I buy from Costco, 119 00:05:24,839 --> 00:05:27,000 Speaker 1: they got the return policy, and so if it ends 120 00:05:27,120 --> 00:05:28,720 Speaker 1: up not being up to stuff, I can. 121 00:05:28,600 --> 00:05:30,080 Speaker 2: Take it back. Okay, is it up to stuff from 122 00:05:30,080 --> 00:05:32,880 Speaker 2: the standpoint of how tall it is? Because I noticed 123 00:05:32,880 --> 00:05:36,160 Speaker 2: that the dude just like sitting completely within this this 124 00:05:36,200 --> 00:05:38,520 Speaker 2: little pop up thing, whereas I've seen ones in the 125 00:05:38,520 --> 00:05:41,120 Speaker 2: past that where the collapsible kind and their head pops 126 00:05:41,120 --> 00:05:42,560 Speaker 2: out and it like zips around their neck or so. 127 00:05:42,600 --> 00:05:44,400 Speaker 1: And you can like pop your hands out and read 128 00:05:44,400 --> 00:05:46,440 Speaker 1: a book. That those look even more goofy to me. 129 00:05:46,960 --> 00:05:48,120 Speaker 1: I'm not going to read a book in there. I'm 130 00:05:48,120 --> 00:05:50,520 Speaker 1: just gonna like close my eyes chill out. 131 00:05:50,600 --> 00:05:51,880 Speaker 2: You have to like sit on the ground and like 132 00:05:51,920 --> 00:05:54,920 Speaker 2: fetal position. It comes like with a little little chair 133 00:05:55,080 --> 00:05:57,640 Speaker 2: or stool. You'd be able to sit in it though, 134 00:05:57,640 --> 00:05:59,200 Speaker 2: That's what I'm saying. 135 00:05:59,400 --> 00:06:01,240 Speaker 1: Okay, I mean my head might be in the top, 136 00:06:01,279 --> 00:06:03,479 Speaker 1: but I don't know. All right, I'll let you guys 137 00:06:03,480 --> 00:06:05,160 Speaker 1: know if I get on any familiar on it, if 138 00:06:05,160 --> 00:06:08,039 Speaker 1: anybody out there listening has used it, it has thoughts, 139 00:06:08,320 --> 00:06:08,599 Speaker 1: let me. 140 00:06:08,600 --> 00:06:10,720 Speaker 2: Know, all right, man. The beer that you and I 141 00:06:10,800 --> 00:06:12,880 Speaker 2: are going to enjoy during this episode is a bourbon 142 00:06:12,920 --> 00:06:15,960 Speaker 2: barrel drafty kilt. This is a Scotch sail by Monday 143 00:06:16,080 --> 00:06:20,279 Speaker 2: Night Brewing and who uh listener, Todd listener, Todd, Yeah, 144 00:06:20,320 --> 00:06:22,520 Speaker 2: my new running buddy. So that's right. 145 00:06:22,560 --> 00:06:23,960 Speaker 1: We'll give our thoughts on on this one at the 146 00:06:24,040 --> 00:06:26,720 Speaker 1: end of the episode. Let's get to listener questions. If 147 00:06:26,720 --> 00:06:28,680 Speaker 1: you have a money question, we'd love to hear from you. 148 00:06:28,720 --> 00:06:31,760 Speaker 1: Just go to hodomoney dot com, slash ask, or simply 149 00:06:31,839 --> 00:06:35,760 Speaker 1: record your question on the voicemambo app of your phone 150 00:06:35,880 --> 00:06:38,160 Speaker 1: and send it over to us how to moneypod at 151 00:06:38,200 --> 00:06:40,880 Speaker 1: gmail dot com. All Matt, let's get to a question 152 00:06:41,240 --> 00:06:44,800 Speaker 1: specifically about selling one investment to fund another. 153 00:06:45,360 --> 00:06:49,119 Speaker 3: I how to money folks, This selexis calling in from 154 00:06:49,160 --> 00:06:54,880 Speaker 3: New Jersey. Really appreciate you guys's opportunity for allowing us 155 00:06:54,920 --> 00:06:58,799 Speaker 3: to call in so cutting to the chase. My husband 156 00:06:58,800 --> 00:07:01,720 Speaker 3: and I own two homes. Our first home now is 157 00:07:01,839 --> 00:07:05,039 Speaker 3: used as a rental property. We purchased it in twenty 158 00:07:05,160 --> 00:07:09,120 Speaker 3: twenty for two hundred and sixty two thousand, five hundred dollars. 159 00:07:09,560 --> 00:07:13,920 Speaker 3: Today it's currently worth four hundred and seventy thousand, and 160 00:07:13,920 --> 00:07:17,000 Speaker 3: that's the amount that it was a praise for by 161 00:07:17,040 --> 00:07:21,400 Speaker 3: the bank. We have a rental contract right now and 162 00:07:21,560 --> 00:07:25,760 Speaker 3: we are currently receiving a profit of six hundred dollars 163 00:07:25,840 --> 00:07:29,840 Speaker 3: a month, which we typically then just reinvest. We're trying 164 00:07:29,880 --> 00:07:32,960 Speaker 3: to decide if we should keep doing that or should 165 00:07:33,040 --> 00:07:38,440 Speaker 3: we sell the home right now. Are the remaining mortgage 166 00:07:38,480 --> 00:07:41,440 Speaker 3: balance is like two hundred thousand on that, so we're 167 00:07:41,440 --> 00:07:46,360 Speaker 3: deciding should we keep just reinvesting the monthly profits, or 168 00:07:46,600 --> 00:07:50,360 Speaker 3: should we sell the home altogether and then take the 169 00:07:50,360 --> 00:07:55,800 Speaker 3: two hundred thousand dollars plus that we recruit and invest that. 170 00:07:57,160 --> 00:07:59,480 Speaker 3: We really appreciate your input. Thanks so much. 171 00:07:59,720 --> 00:08:03,120 Speaker 2: Bye, all right, Alexis. First off, thank you so much 172 00:08:03,280 --> 00:08:05,880 Speaker 2: for listening to the podcast. Secondly, I love that you 173 00:08:05,960 --> 00:08:08,440 Speaker 2: opted to use your first home as a rental property 174 00:08:08,520 --> 00:08:10,960 Speaker 2: because it is amazing how holding on to that first home, 175 00:08:11,000 --> 00:08:14,360 Speaker 2: how saving up for another down payment for your second 176 00:08:14,440 --> 00:08:17,240 Speaker 2: property purchase, How that can jump start your wealth building efforts. 177 00:08:17,360 --> 00:08:19,680 Speaker 2: It is one of our favorite ways for folks to 178 00:08:19,680 --> 00:08:22,520 Speaker 2: become landlords. Underrated. Sure, if that is something that you 179 00:08:22,560 --> 00:08:25,400 Speaker 2: are interested in doing, it's how well, actually, I take 180 00:08:25,440 --> 00:08:27,679 Speaker 2: it back, it's how you Sometimes they get your stories 181 00:08:27,680 --> 00:08:30,040 Speaker 2: mixed up. It's how you became a landlord. So we 182 00:08:30,080 --> 00:08:32,840 Speaker 2: continue to live in our first property, and we love 183 00:08:32,920 --> 00:08:34,920 Speaker 2: that house so much we decided to stay in it 184 00:08:35,080 --> 00:08:35,840 Speaker 2: while we purchased. 185 00:08:36,000 --> 00:08:37,960 Speaker 1: But eventually you did move out of that and rent 186 00:08:38,000 --> 00:08:39,400 Speaker 1: out that home and we still have it. But it 187 00:08:39,800 --> 00:08:42,120 Speaker 1: wasn't how I first dip my totally start to real 188 00:08:42,200 --> 00:08:43,760 Speaker 1: estate invest But for a lot of folks, I think 189 00:08:43,840 --> 00:08:45,800 Speaker 1: that's the best. It makes a lot of sense, especially 190 00:08:45,800 --> 00:08:47,320 Speaker 1: if you're in some sort of like starter home. It's 191 00:08:47,400 --> 00:08:50,000 Speaker 1: kind of smaller. You got it for a reasonable price, 192 00:08:50,000 --> 00:08:51,520 Speaker 1: you got a good locked in rate, which that will 193 00:08:51,520 --> 00:08:53,480 Speaker 1: come up. And the answer this question, Matt, it can 194 00:08:53,520 --> 00:08:56,800 Speaker 1: make sense. That's your stepping stone as you save up 195 00:08:56,840 --> 00:08:59,120 Speaker 1: that next down payment. Like you said, and I didn't 196 00:08:59,120 --> 00:09:02,160 Speaker 1: hear necessarily a reason of why Alexis wants to get 197 00:09:02,240 --> 00:09:04,480 Speaker 1: rid of this rental property. I don't know if you did, Matt, 198 00:09:04,559 --> 00:09:07,440 Speaker 1: Like I didn't necessarily hear some angst. 199 00:09:07,200 --> 00:09:08,599 Speaker 2: Or anything like that. I think she's just wanted to 200 00:09:08,600 --> 00:09:09,640 Speaker 2: make sure she's doing the right thing. 201 00:09:09,720 --> 00:09:13,240 Speaker 1: Yeah, exactly, And so like, is it because you think 202 00:09:13,240 --> 00:09:15,280 Speaker 1: you can make more money investing in the stock market 203 00:09:15,600 --> 00:09:17,600 Speaker 1: or is it because you don't like being a landlord? 204 00:09:17,880 --> 00:09:20,560 Speaker 1: My guess is it's the former one, Matt, that she 205 00:09:20,640 --> 00:09:22,680 Speaker 1: maybe thinks she can do better investing in the market, 206 00:09:22,720 --> 00:09:25,560 Speaker 1: because I just didn't hear those frustrations popping up in 207 00:09:25,559 --> 00:09:28,240 Speaker 1: the voice memo. But the question about which one is 208 00:09:28,280 --> 00:09:31,800 Speaker 1: going to be more profitable over time, that's a tough one. Like, 209 00:09:32,880 --> 00:09:34,920 Speaker 1: so in some ways it's saying like, well, where's our 210 00:09:34,920 --> 00:09:35,719 Speaker 1: what's our crystal ball? 211 00:09:35,760 --> 00:09:35,960 Speaker 2: Say? 212 00:09:36,120 --> 00:09:37,520 Speaker 1: Is the real estate market going to do better? Is 213 00:09:37,520 --> 00:09:39,600 Speaker 1: the stock market going to do better? And I think, 214 00:09:39,600 --> 00:09:42,880 Speaker 1: you know, buying a rental property now, right with prices 215 00:09:42,880 --> 00:09:47,320 Speaker 1: being inflated, with interest rates being sky high, or at least, 216 00:09:47,480 --> 00:09:49,920 Speaker 1: you know, relative to the last few years, their sky high. 217 00:09:50,320 --> 00:09:54,400 Speaker 1: It's it's one thing, but you already own your home 218 00:09:54,480 --> 00:09:58,000 Speaker 1: with favorable terms Alexis, and part of the appeal of 219 00:09:58,040 --> 00:10:00,000 Speaker 1: those terms is that you have a locked in low mortgage. 220 00:10:00,400 --> 00:10:00,679 Speaker 2: Matt. 221 00:10:00,760 --> 00:10:03,160 Speaker 1: I looked this up because I was curious. The average 222 00:10:03,200 --> 00:10:06,080 Speaker 1: interest rate in twenty twenty was on a thirty year 223 00:10:06,120 --> 00:10:07,840 Speaker 1: mortgage three point one percent. 224 00:10:07,920 --> 00:10:08,480 Speaker 2: Oh my gosh. 225 00:10:08,559 --> 00:10:11,440 Speaker 1: Anybody trying to buy home right now is like punching 226 00:10:11,480 --> 00:10:13,000 Speaker 1: themselves in the face because they're like, why didn't I 227 00:10:13,000 --> 00:10:13,720 Speaker 1: buy a home back then? 228 00:10:13,880 --> 00:10:15,080 Speaker 2: Little lower than I would have guessed. 229 00:10:15,160 --> 00:10:17,400 Speaker 1: It's it was crazy low, and a lot of that 230 00:10:17,600 --> 00:10:20,679 Speaker 1: was like pandemic induced uncertainty and stuff like that. So 231 00:10:21,000 --> 00:10:24,120 Speaker 1: Alexis likely has just an incredible rate locked in on 232 00:10:24,120 --> 00:10:27,200 Speaker 1: this home. You're borrowing literally Alexis at rates lower than 233 00:10:27,200 --> 00:10:29,480 Speaker 1: what the federal government can borrow at right now, and 234 00:10:29,520 --> 00:10:33,440 Speaker 1: so it's hard to assign a specific value to that 235 00:10:33,480 --> 00:10:35,720 Speaker 1: locked in low mortgage rate, but I think it's actually 236 00:10:35,720 --> 00:10:38,160 Speaker 1: one of the best protections you could have against inflation. 237 00:10:38,559 --> 00:10:41,720 Speaker 1: I'm reluctant to get rid of my low interest rate mortgages. 238 00:10:41,920 --> 00:10:44,280 Speaker 1: I think it's just worth mentioning that that's kind of 239 00:10:44,760 --> 00:10:46,679 Speaker 1: a mini little gold mine that you're sitting on right there. 240 00:10:46,720 --> 00:10:49,640 Speaker 2: Totally. Yeah. So the other thing is that returns in 241 00:10:49,679 --> 00:10:53,120 Speaker 2: real estate are a little skewed because of leverage. So 242 00:10:53,200 --> 00:10:55,000 Speaker 2: you've seen the value of your home increase by more 243 00:10:55,000 --> 00:10:57,679 Speaker 2: than two hundred thousand dollars in less than five years, 244 00:10:57,720 --> 00:11:01,320 Speaker 2: which is awesome. Don't expect returns at that rate moving forward, Okay, 245 00:11:01,600 --> 00:11:03,959 Speaker 2: but I'm not sure what it is or how much 246 00:11:04,000 --> 00:11:05,360 Speaker 2: it is that you put down. But if you put 247 00:11:05,360 --> 00:11:07,760 Speaker 2: down let's say twenty percent, well that means you turned 248 00:11:07,840 --> 00:11:11,280 Speaker 2: fifty five thousand dollars into two hundred thousand dollars, which 249 00:11:11,360 --> 00:11:14,600 Speaker 2: is fantastic in half a decade. That's probably Yeah, kudos 250 00:11:14,600 --> 00:11:17,760 Speaker 2: to you. But keep in mind that leverage cuts both ways. 251 00:11:18,120 --> 00:11:20,079 Speaker 2: In the case of real estate investors over the last 252 00:11:20,120 --> 00:11:21,840 Speaker 2: decade or so, it's been a massive boon to their 253 00:11:21,840 --> 00:11:24,360 Speaker 2: bottom line, but it didn't necessarily it could not have 254 00:11:24,400 --> 00:11:24,959 Speaker 2: gone that way. 255 00:11:25,280 --> 00:11:26,800 Speaker 1: Talk to someone who bought a house in two thousand 256 00:11:26,800 --> 00:11:28,280 Speaker 1: and six and seven exactly. 257 00:11:28,559 --> 00:11:30,480 Speaker 2: So let's say that let's compare those returns out to 258 00:11:30,520 --> 00:11:32,760 Speaker 2: the stock market, because let's say if you had invested 259 00:11:32,760 --> 00:11:35,880 Speaker 2: that money within the S and P five hundred instead, 260 00:11:36,559 --> 00:11:40,160 Speaker 2: you would have seen some fantastic growth compounding over the 261 00:11:40,200 --> 00:11:42,640 Speaker 2: past five years that would have doubled your money. It's 262 00:11:42,679 --> 00:11:45,120 Speaker 2: just not quite as much as what you've experienced though 263 00:11:45,200 --> 00:11:49,520 Speaker 2: there with that first property. Both leverage and also the 264 00:11:49,559 --> 00:11:52,120 Speaker 2: market conditions that we've experienced have been in your favor, 265 00:11:52,280 --> 00:11:54,120 Speaker 2: Like when did your back baby? It's so nice, But 266 00:11:54,320 --> 00:11:57,240 Speaker 2: there are still some reasons, however, to consider selling that. 267 00:11:57,559 --> 00:11:59,440 Speaker 2: I guess it's not a slam dunk to say, like 268 00:11:59,480 --> 00:12:01,400 Speaker 2: you said early Joel, like you're sitting on a gold mine. 269 00:12:01,440 --> 00:12:04,720 Speaker 2: You've seen incredible growth. That doesn't necessarily mean you should 270 00:12:04,760 --> 00:12:06,160 Speaker 2: be hanging on to this thing forever, though. 271 00:12:06,040 --> 00:12:07,920 Speaker 1: At some point you cash out the gold mine. I 272 00:12:07,920 --> 00:12:10,480 Speaker 1: guess to live a life of leisure, maybe that's what 273 00:12:10,520 --> 00:12:12,600 Speaker 1: Alexis is trying to do and maybe simplify her life, 274 00:12:12,640 --> 00:12:14,800 Speaker 1: which I totally get getting out of the real estate 275 00:12:14,880 --> 00:12:17,400 Speaker 1: game for that because it has more part part time 276 00:12:17,480 --> 00:12:20,520 Speaker 1: job aspects and usually Matt, we don't let the tax 277 00:12:20,559 --> 00:12:24,920 Speaker 1: tail wag the investment dog, because, yeah, taxes certainly factor 278 00:12:24,960 --> 00:12:28,360 Speaker 1: into our strategy. But I think if you overthink the 279 00:12:28,360 --> 00:12:31,240 Speaker 1: tax thing, you might be liable to make mistakes just 280 00:12:31,400 --> 00:12:34,559 Speaker 1: in terms of how you invest in what you invest in. 281 00:12:34,800 --> 00:12:37,400 Speaker 1: But in this case, the tax bill for selling it 282 00:12:37,400 --> 00:12:40,320 Speaker 1: could be so significant that it really does weigh heavily 283 00:12:40,320 --> 00:12:42,920 Speaker 1: into the discussion. And that is because of a really 284 00:12:42,960 --> 00:12:45,840 Speaker 1: important thing Alexis said initially and what we talked about 285 00:12:45,840 --> 00:12:48,440 Speaker 1: at the very beginning, the fact that this house was 286 00:12:48,480 --> 00:12:52,600 Speaker 1: a primary residence to begin with. Right, So because of that, 287 00:12:52,880 --> 00:12:56,760 Speaker 1: if Alexis lived in this house for at least two years, 288 00:12:57,120 --> 00:13:00,599 Speaker 1: she could potentially avoid tax altogether if she sells the 289 00:13:00,640 --> 00:13:03,440 Speaker 1: property soon. The key for her is to meet the 290 00:13:03,559 --> 00:13:05,319 Speaker 1: what's known as the two in five rule, and it 291 00:13:05,360 --> 00:13:06,920 Speaker 1: basically states that if you live in the home for 292 00:13:06,960 --> 00:13:09,720 Speaker 1: at least seven hundred and thirty days of the past 293 00:13:10,400 --> 00:13:12,840 Speaker 1: eight hundred and twenty six days, Matt, that's two out 294 00:13:12,880 --> 00:13:15,440 Speaker 1: of the last five years. If you follow up right, yeah, 295 00:13:15,520 --> 00:13:18,679 Speaker 1: you won't owe capital gains tax on the appreciation that 296 00:13:18,720 --> 00:13:20,720 Speaker 1: you've seen, which is quite a bit, right, more than 297 00:13:20,720 --> 00:13:24,160 Speaker 1: two hundred thousand dollars in appreciation. So basically, if alexist 298 00:13:24,240 --> 00:13:27,120 Speaker 1: in taxes soll soon right, she could save herself roughly 299 00:13:27,400 --> 00:13:31,199 Speaker 1: thirty thousand dollars in tax that she would otherwise, oh 300 00:13:31,360 --> 00:13:32,360 Speaker 1: if she waited. 301 00:13:32,040 --> 00:13:32,880 Speaker 2: Just a bit longer. 302 00:13:33,240 --> 00:13:36,439 Speaker 1: And you know, that's not insignificant, and it's one of 303 00:13:36,520 --> 00:13:39,320 Speaker 1: the only investment moves you can make that can help 304 00:13:39,360 --> 00:13:43,360 Speaker 1: you avoid taxation no matter what. And so it really 305 00:13:43,400 --> 00:13:45,319 Speaker 1: is that, Hey, I owned the primary home, I lived 306 00:13:45,360 --> 00:13:46,760 Speaker 1: in it for a couple of years, I rent it 307 00:13:46,760 --> 00:13:48,679 Speaker 1: out for a couple of years. Now I'm selling and 308 00:13:48,679 --> 00:13:51,720 Speaker 1: boomshaka laca. All of those proceeds still accrue to you 309 00:13:51,840 --> 00:13:54,199 Speaker 1: without paying a dime in tax. That's why our buddy 310 00:13:54,280 --> 00:13:56,000 Speaker 1: Carl Matt, we've talked to him on the show about this, 311 00:13:56,360 --> 00:13:58,360 Speaker 1: why he does live in flips Because if he lives 312 00:13:58,360 --> 00:14:00,199 Speaker 1: in the house for two years and he's renovated it 313 00:14:00,240 --> 00:14:02,200 Speaker 1: all the while, he has a place to stay, and 314 00:14:02,280 --> 00:14:06,640 Speaker 1: when he sells market appreciation and forced appreciation, he's able 315 00:14:06,679 --> 00:14:09,040 Speaker 1: to garner all the money that he gets from that 316 00:14:09,080 --> 00:14:10,600 Speaker 1: sale and not pay a diamond tax. 317 00:14:10,679 --> 00:14:13,719 Speaker 2: It's pretty sweet. Yeah, so taxes are at least one consideration. 318 00:14:14,280 --> 00:14:16,840 Speaker 2: But you said you still have a balance on that property. 319 00:14:17,200 --> 00:14:20,120 Speaker 2: You likely owe two hundred thousand dollars at a really 320 00:14:20,160 --> 00:14:23,920 Speaker 2: awesome interest rate. Again, you're making money every single month 321 00:14:23,960 --> 00:14:27,000 Speaker 2: your property. It's appreciating in value. There are real reasons 322 00:14:27,040 --> 00:14:28,760 Speaker 2: to hang on to this home as well. And so 323 00:14:28,840 --> 00:14:30,920 Speaker 2: I think my biggest question for you and your husband 324 00:14:30,960 --> 00:14:33,640 Speaker 2: is whether or not you could see yourselves renting this 325 00:14:33,720 --> 00:14:36,800 Speaker 2: property out for the next like literally for decades to come. 326 00:14:37,000 --> 00:14:39,920 Speaker 2: It could continue to do really well for you. But 327 00:14:40,120 --> 00:14:42,640 Speaker 2: just and you barely mentioned this earlier, Joel, but not 328 00:14:42,680 --> 00:14:45,880 Speaker 2: everyone appreciates or likes that part time the part time 329 00:14:46,160 --> 00:14:50,400 Speaker 2: job element of owning investment property. Yes, it's much less 330 00:14:50,400 --> 00:14:52,440 Speaker 2: passive than just putting your money in the market. 331 00:14:52,640 --> 00:14:55,280 Speaker 1: And Alexis has to look at the duration and how 332 00:14:55,280 --> 00:14:56,840 Speaker 1: long she lived in the house and how long she's 333 00:14:56,880 --> 00:14:58,720 Speaker 1: rented it out. She's got to run those numbers for 334 00:14:58,720 --> 00:15:00,600 Speaker 1: herself to make sure that she would be able to 335 00:15:00,600 --> 00:15:03,080 Speaker 1: sell this and not incur any any sort of capital 336 00:15:03,120 --> 00:15:05,280 Speaker 1: gains tax. But I think what we're getting down to 337 00:15:05,480 --> 00:15:08,160 Speaker 1: is if she if that's the case, either sell it 338 00:15:08,200 --> 00:15:09,640 Speaker 1: now or don't sell it at all. 339 00:15:09,960 --> 00:15:11,720 Speaker 2: I kind of think literally it is now or never. 340 00:15:11,800 --> 00:15:14,600 Speaker 1: Yeah, you don't you don't want to rethink this in 341 00:15:14,880 --> 00:15:17,200 Speaker 1: two years and be like, you know what I think. 342 00:15:17,240 --> 00:15:19,040 Speaker 1: Now it's time to sell. And then you got this 343 00:15:19,080 --> 00:15:21,480 Speaker 1: too late, forty thousand dollars tax bomb that you would 344 00:15:21,520 --> 00:15:23,680 Speaker 1: have avoided. That'd be a real bummer. We don't want 345 00:15:23,680 --> 00:15:26,200 Speaker 1: you to face that, So make that decision quick, But 346 00:15:26,280 --> 00:15:29,280 Speaker 1: make that decision for partially for tax purposes and partially 347 00:15:29,280 --> 00:15:31,320 Speaker 1: for lifestyle purposes. I would kind of take both of 348 00:15:31,320 --> 00:15:35,000 Speaker 1: those into consideration. But Matt, we've got more to get 349 00:15:35,040 --> 00:15:38,080 Speaker 1: to on this episode, including a listener wants to know 350 00:15:38,200 --> 00:15:41,280 Speaker 1: about a really expensive surgery for her dog, kind of 351 00:15:41,320 --> 00:15:42,920 Speaker 1: save on that. We'll get to that and more right 352 00:15:42,960 --> 00:15:52,360 Speaker 1: after this. All right, Joel, we are back for the break. 353 00:15:52,400 --> 00:15:54,720 Speaker 2: We've got more to get to, including a listener asking 354 00:15:54,720 --> 00:15:57,680 Speaker 2: them abouts maybe moving down to one car. This may 355 00:15:57,760 --> 00:15:59,920 Speaker 2: or may not be the secret to my success, Joel, 356 00:16:00,200 --> 00:16:01,680 Speaker 2: there's so many secrets, no matter. I don't know if 357 00:16:01,680 --> 00:16:02,880 Speaker 2: I want to boil it all down to that. 358 00:16:02,920 --> 00:16:04,480 Speaker 1: They're going to all come out in your tell all 359 00:16:04,520 --> 00:16:05,520 Speaker 1: memoir one of these days. 360 00:16:05,560 --> 00:16:08,120 Speaker 2: But let's now hear from a listener who is interested 361 00:16:08,240 --> 00:16:10,680 Speaker 2: in retiring maybe a little bit early. 362 00:16:11,120 --> 00:16:15,120 Speaker 4: Hey, Matt and Joel, This is Evan Brooks from Omaha, Nebraska, 363 00:16:15,760 --> 00:16:19,680 Speaker 4: a longtime listener of the podcast. My wife and I 364 00:16:19,720 --> 00:16:21,720 Speaker 4: have really enjoyed all the advice you've given us over 365 00:16:21,760 --> 00:16:26,880 Speaker 4: the years. My question is, we're interested in early retirement 366 00:16:27,640 --> 00:16:32,200 Speaker 4: and aren't quite ready to pay a financial advisor yet. However, 367 00:16:32,360 --> 00:16:35,000 Speaker 4: I'm sure there are some amazing books out there for 368 00:16:35,080 --> 00:16:39,480 Speaker 4: early retirement. Can you suggest a book or two that 369 00:16:39,600 --> 00:16:42,720 Speaker 4: I can read to get the basics down and under 370 00:16:42,720 --> 00:16:46,000 Speaker 4: my belt before I go talk to a professional for 371 00:16:46,040 --> 00:16:48,880 Speaker 4: six thousand dollars? Just seems like a good place to 372 00:16:48,920 --> 00:16:53,000 Speaker 4: start might be to read and educate myself at a 373 00:16:53,080 --> 00:16:55,760 Speaker 4: level of detail that you don't typically get from just listening. 374 00:16:56,560 --> 00:16:59,800 Speaker 4: Thanks for all the help you've given us thus far, 375 00:17:00,120 --> 00:17:05,280 Speaker 4: and hope to see you guys in Omaha, Nebraska someday. 376 00:17:05,440 --> 00:17:09,440 Speaker 1: So yeah, oh, matt Omaha, Nebraska. We might we actually 377 00:17:09,520 --> 00:17:13,479 Speaker 1: might be an Omaha in May for the Berkshire Hathaway 378 00:17:13,520 --> 00:17:16,439 Speaker 1: Annual Meeting. So last week we talked with David Clark, 379 00:17:16,600 --> 00:17:20,560 Speaker 1: who is the resident Warren Buffett expert. He's written a 380 00:17:20,560 --> 00:17:23,000 Speaker 1: ton of books on Warren Buffett on value investing, and 381 00:17:23,040 --> 00:17:26,360 Speaker 1: he actually invited us to the annual Berkshire Hathaway shareholder 382 00:17:26,400 --> 00:17:27,520 Speaker 1: meeting and. 383 00:17:27,119 --> 00:17:29,600 Speaker 2: Not every day that happens. No, it's I guess we 384 00:17:29,640 --> 00:17:33,000 Speaker 2: could attend if we owned at least one share of 385 00:17:33,040 --> 00:17:35,240 Speaker 2: the company. But how much Doesway go for it? 386 00:17:35,320 --> 00:17:37,239 Speaker 1: It only has to be B shares. I read it, really, 387 00:17:37,560 --> 00:17:38,920 Speaker 1: and I think as much as that costs four hund 388 00:17:38,920 --> 00:17:40,520 Speaker 1: and sixty five bucks something like that, too bad. 389 00:17:40,560 --> 00:17:42,880 Speaker 2: It's not bad just to throw some you know, throw 390 00:17:42,920 --> 00:17:45,719 Speaker 2: some money Warren's way. He doesn't have enough. He deserves it. 391 00:17:46,080 --> 00:17:47,719 Speaker 1: So yeah, Evan will let you know if that happens. 392 00:17:47,840 --> 00:17:50,320 Speaker 1: And I love Matt that he said he's not willing 393 00:17:50,400 --> 00:17:53,480 Speaker 1: to pay an advisor yet he realizes that maybe at 394 00:17:53,480 --> 00:17:55,320 Speaker 1: some point in his financial journey he will want to. 395 00:17:55,800 --> 00:17:58,680 Speaker 1: And given where he's at now, though he's curious, he's 396 00:17:58,680 --> 00:18:01,720 Speaker 1: wanting to pursue this path of fire. He's kind of 397 00:18:01,720 --> 00:18:04,800 Speaker 1: in the DIY information gathering stage. And so I do 398 00:18:04,840 --> 00:18:08,480 Speaker 1: think the right way to move forward is that individual approach, 399 00:18:08,800 --> 00:18:13,360 Speaker 1: not necessarily hiring someone expensive to help you yet, but yeah, 400 00:18:13,440 --> 00:18:15,879 Speaker 1: maybe maybe that becomes necessary or at least helpful down 401 00:18:15,880 --> 00:18:16,160 Speaker 1: the road. 402 00:18:16,200 --> 00:18:17,960 Speaker 2: And especially given to the fact that he's talking about 403 00:18:17,960 --> 00:18:20,920 Speaker 2: early retirement, I think if he was like purely focused 404 00:18:20,920 --> 00:18:23,720 Speaker 2: on financial independence, where maybe and maybe that I don't know, 405 00:18:23,720 --> 00:18:25,640 Speaker 2: maybe for him it's synonymous, right, Like maybe it's one 406 00:18:25,640 --> 00:18:27,080 Speaker 2: and the same thing. But there's a whole lot of 407 00:18:27,760 --> 00:18:30,359 Speaker 2: thought around early retirement that I think you could do 408 00:18:30,760 --> 00:18:33,679 Speaker 2: on your own. And if I were in your shoes, 409 00:18:34,119 --> 00:18:36,080 Speaker 2: what I would do is I would read some folks 410 00:18:36,119 --> 00:18:38,719 Speaker 2: who have put in the hard work to achieve financial 411 00:18:38,760 --> 00:18:41,920 Speaker 2: independence or retiring early first, because there's going to be 412 00:18:42,000 --> 00:18:44,840 Speaker 2: there's positive experiences out there, but there's also negative experiences 413 00:18:44,840 --> 00:18:47,520 Speaker 2: because some folks feel like that they gave up on 414 00:18:47,520 --> 00:18:51,159 Speaker 2: too many good things in life in order to retire early, 415 00:18:51,359 --> 00:18:53,359 Speaker 2: like along the way, maybe the things that make life 416 00:18:53,600 --> 00:18:56,159 Speaker 2: worth living. But they wish that they had extended the 417 00:18:56,200 --> 00:18:59,120 Speaker 2: timeline of bits to where maybe they weren't quite as extreme. 418 00:18:59,240 --> 00:19:02,639 Speaker 1: Yeah, maybe there wasn't nosed to the grindstone as hard 419 00:19:02,760 --> 00:19:04,879 Speaker 1: and maybe they know, takeing the foot off the pedal 420 00:19:04,920 --> 00:19:06,679 Speaker 1: so they could enjoy life in the here and now 421 00:19:06,720 --> 00:19:07,399 Speaker 1: and in the future. 422 00:19:07,480 --> 00:19:10,160 Speaker 2: Yeah. For more than one person who has retired early 423 00:19:10,240 --> 00:19:11,879 Speaker 2: has told me that they wish that they would have 424 00:19:11,880 --> 00:19:14,600 Speaker 2: prioritized their health, for instance, all along the way as 425 00:19:14,640 --> 00:19:16,600 Speaker 2: opposed to having this chunk of time now at the 426 00:19:16,640 --> 00:19:18,800 Speaker 2: sort of tail end of I mean, not the tail 427 00:19:18,880 --> 00:19:21,199 Speaker 2: end of their life, but like they're in midlife and 428 00:19:21,240 --> 00:19:22,720 Speaker 2: now they realize that, man, there's a whole lot of 429 00:19:22,720 --> 00:19:24,560 Speaker 2: habits that I wish it would have implemented earlier on. 430 00:19:24,960 --> 00:19:27,320 Speaker 2: But then others have reached fire and have found that 431 00:19:27,520 --> 00:19:29,640 Speaker 2: work like the actual job that you had, at least 432 00:19:29,640 --> 00:19:32,439 Speaker 2: in some capacity, that it provided meaning for them. And 433 00:19:32,480 --> 00:19:34,320 Speaker 2: so because of that, they feel a bit aimless. They 434 00:19:34,640 --> 00:19:38,040 Speaker 2: feel a little unmoored after hitting their net worth milestone, 435 00:19:38,080 --> 00:19:39,960 Speaker 2: after hitting their number calling it quits. 436 00:19:40,000 --> 00:19:41,800 Speaker 1: We've talked about friends who hit Fire, Matt and they 437 00:19:41,800 --> 00:19:44,399 Speaker 1: had great jobs or whatever, and then they start driving 438 00:19:44,440 --> 00:19:47,920 Speaker 1: for Uber just to have that kind of relational connection, right, 439 00:19:47,960 --> 00:19:50,040 Speaker 1: And it's one of those things that you wouldn't expect that, 440 00:19:50,280 --> 00:19:51,600 Speaker 1: but people do end up there. 441 00:19:51,760 --> 00:19:54,840 Speaker 2: Yeah. I think knowing why you want to achieve fire 442 00:19:54,960 --> 00:19:56,960 Speaker 2: like that is an important place to start in order 443 00:19:57,040 --> 00:19:59,000 Speaker 2: to make sure that you just aren't chasing something that 444 00:19:59,040 --> 00:20:01,120 Speaker 2: will actually make you ha in the end. Like think 445 00:20:01,160 --> 00:20:04,560 Speaker 2: through sort of like all the different implications of achieving 446 00:20:04,640 --> 00:20:06,320 Speaker 2: financial independence and retiring early. 447 00:20:06,400 --> 00:20:08,240 Speaker 1: I guess the type of books that we would recommend 448 00:20:08,280 --> 00:20:10,360 Speaker 1: first would probably be the ones that take that full 449 00:20:10,440 --> 00:20:13,120 Speaker 1: human picture into account. I think your money or your life. 450 00:20:13,160 --> 00:20:16,240 Speaker 1: That's kind of an original firebook, and rightly so, you know, 451 00:20:16,280 --> 00:20:19,200 Speaker 1: it's less technical, and it has stories that help drive 452 00:20:19,560 --> 00:20:22,480 Speaker 1: home the point, and you know, after reading that, I 453 00:20:22,520 --> 00:20:24,840 Speaker 1: would pivot to maybe something like Jail Collins The Simple 454 00:20:24,920 --> 00:20:27,959 Speaker 1: Path to Wealth. I'd love Jail's writing. It's such a 455 00:20:28,000 --> 00:20:31,000 Speaker 1: down to earth kind of folksy vibe, and it's very approachable, 456 00:20:31,000 --> 00:20:34,479 Speaker 1: even though it's a book on investing simple investing. It's 457 00:20:34,800 --> 00:20:37,160 Speaker 1: just I think it's really helpful to have someone explain 458 00:20:37,400 --> 00:20:42,879 Speaker 1: in depth just how simple building wealth can be, because simplicity, 459 00:20:42,920 --> 00:20:44,600 Speaker 1: on its face, I think it can seem like you're 460 00:20:44,600 --> 00:20:47,120 Speaker 1: making a silly or ill informed choice because sometimes simplicity 461 00:20:47,160 --> 00:20:49,120 Speaker 1: it's like, well, you haven't thought through this enough, right, 462 00:20:49,560 --> 00:20:52,880 Speaker 1: But when you get a detailed why behind opting for 463 00:20:52,920 --> 00:20:56,159 Speaker 1: the simple approach, it all clicks, I think. And I 464 00:20:56,240 --> 00:20:59,160 Speaker 1: think Jail's book is really good for people who are saying, 465 00:20:59,160 --> 00:21:01,879 Speaker 1: but isn't that just not diversified enough? Isn't that just 466 00:21:01,960 --> 00:21:03,720 Speaker 1: too basic? And you read his book and you're like, 467 00:21:03,720 --> 00:21:06,280 Speaker 1: oh no, no, there's a lot of good reasons for going 468 00:21:06,320 --> 00:21:06,880 Speaker 1: that route. 469 00:21:07,000 --> 00:21:09,480 Speaker 2: Totally yeah, and so yeah, the Jail Collins book is 470 00:21:09,480 --> 00:21:11,320 Speaker 2: a little more kind of like nuts and boltzy, whereas 471 00:21:11,400 --> 00:21:14,720 Speaker 2: Vicki Robbins like her book or Vicky robin her book 472 00:21:14,800 --> 00:21:17,560 Speaker 2: was more I feel like it was a bit more inspirational. 473 00:21:17,680 --> 00:21:20,840 Speaker 2: It's similar to that, I would say, quit like a millionaire. 474 00:21:21,040 --> 00:21:23,960 Speaker 2: That's another great book in the fire category. Actually, we 475 00:21:24,000 --> 00:21:26,240 Speaker 2: had her, so this was written by Christy Sheen. We 476 00:21:26,280 --> 00:21:28,880 Speaker 2: had her as well as Jail Collins on the show 477 00:21:28,960 --> 00:21:31,800 Speaker 2: over the years, but Christie's episode was one to eighteen, 478 00:21:31,880 --> 00:21:33,960 Speaker 2: so this is a while back. She's awesome, but her 479 00:21:34,000 --> 00:21:36,439 Speaker 2: story is incredible and it helps you to see that 480 00:21:36,480 --> 00:21:38,600 Speaker 2: almost anyone out there can achieve fire. 481 00:21:39,040 --> 00:21:43,440 Speaker 1: Yeah, her stories of growing up in China dirt poor, 482 00:21:43,720 --> 00:21:45,080 Speaker 1: I mean all inspiring. 483 00:21:45,200 --> 00:21:46,919 Speaker 2: Like what I remember is her talking about how she 484 00:21:47,320 --> 00:21:51,160 Speaker 2: like as a kid, she would play basically out a landfill, 485 00:21:51,200 --> 00:21:54,640 Speaker 2: but it's a landfill where there was medical waste, waste 486 00:21:54,720 --> 00:21:59,320 Speaker 2: like went medical trash, which man, sounds horrifying. But what 487 00:21:59,400 --> 00:22:01,280 Speaker 2: other book that will throw at you. And this is 488 00:22:01,320 --> 00:22:04,160 Speaker 2: also another guest that we've had on the show is 489 00:22:04,200 --> 00:22:08,080 Speaker 2: The Psychology of Money, which is by Morgan Household. It's 490 00:22:08,080 --> 00:22:10,280 Speaker 2: not a fire specific book, but I think it's well 491 00:22:10,280 --> 00:22:12,240 Speaker 2: worth the read because it just delves into the way 492 00:22:12,280 --> 00:22:15,640 Speaker 2: you think about money, which we're always pushing folks out 493 00:22:15,680 --> 00:22:18,840 Speaker 2: there to think about. Like the nuts and bolts are crucial, 494 00:22:18,920 --> 00:22:23,040 Speaker 2: but books like Christie's or Morgan Housel's, I think they 495 00:22:23,080 --> 00:22:25,720 Speaker 2: can help you to even sort of broaden how it 496 00:22:25,800 --> 00:22:28,200 Speaker 2: is that you're thinking about your work and money, and 497 00:22:28,280 --> 00:22:30,480 Speaker 2: just once you are investing, once you are able to 498 00:22:30,480 --> 00:22:32,320 Speaker 2: get past kind of like the nuts and bolts of it, 499 00:22:32,960 --> 00:22:35,399 Speaker 2: to be able to help identify maybe the why behind 500 00:22:35,440 --> 00:22:37,199 Speaker 2: what it is that you're doing. The jail Colin is 501 00:22:37,200 --> 00:22:39,320 Speaker 2: a simple path to wealth. It's not all that difficult, 502 00:22:39,359 --> 00:22:41,280 Speaker 2: but I think the harder aspects of it are more 503 00:22:41,280 --> 00:22:44,040 Speaker 2: of the psychological aspects that are difficult for us to 504 00:22:44,480 --> 00:22:45,800 Speaker 2: get past basically. 505 00:22:45,520 --> 00:22:46,600 Speaker 1: And you want to make sure you know what you're 506 00:22:46,640 --> 00:22:48,240 Speaker 1: signing up porn Evand it's kind of like you were saying, 507 00:22:48,240 --> 00:22:50,919 Speaker 1: Matt will begin with the end in mind. And you 508 00:22:50,920 --> 00:22:52,720 Speaker 1: can always give these books on the library of course, 509 00:22:52,840 --> 00:22:54,639 Speaker 1: or you know, you get the audiobooks for free on 510 00:22:54,720 --> 00:22:59,320 Speaker 1: Libby if and hopefully your library has these within their selection, 511 00:22:59,760 --> 00:23:01,840 Speaker 1: but you know, if you love them, you want your 512 00:23:01,880 --> 00:23:04,760 Speaker 1: own copy buy them used on eBay. You also mentioned, 513 00:23:04,760 --> 00:23:06,760 Speaker 1: by the way, six thousand bucks to talk to a pro. 514 00:23:07,520 --> 00:23:08,879 Speaker 1: I don't think it needs to cost that much. And 515 00:23:08,920 --> 00:23:10,440 Speaker 1: this is something we talk about regularly on the show. 516 00:23:10,440 --> 00:23:11,760 Speaker 1: Matt and I have talked about more and more. Is 517 00:23:11,800 --> 00:23:14,439 Speaker 1: that financial planners for some people who are further along 518 00:23:14,520 --> 00:23:17,640 Speaker 1: in progress reaching their financial goals, well, maybe they want 519 00:23:17,640 --> 00:23:19,679 Speaker 1: a second set of eyes. Maybe they do need the 520 00:23:19,680 --> 00:23:22,399 Speaker 1: help of a pro at that point. And you know, 521 00:23:22,440 --> 00:23:25,359 Speaker 1: Domain money has flat fee plans. Two out of the 522 00:23:25,400 --> 00:23:27,919 Speaker 1: three they offer our priced well below six thousand bucks. 523 00:23:28,080 --> 00:23:28,359 Speaker 2: Hello. 524 00:23:28,440 --> 00:23:30,119 Speaker 1: Nectaren is a site where you can meet with the 525 00:23:30,200 --> 00:23:32,119 Speaker 1: CFP for one hundred and fifty bucks an hour. If 526 00:23:32,119 --> 00:23:34,359 Speaker 1: you just need a couple of hours of advice, you 527 00:23:34,440 --> 00:23:36,440 Speaker 1: just pay for as much time as you need. So 528 00:23:36,520 --> 00:23:38,840 Speaker 1: I just want people to know there are options for 529 00:23:38,880 --> 00:23:42,919 Speaker 1: seeing a financial planner that don't involve signing in blood 530 00:23:42,960 --> 00:23:46,560 Speaker 1: to a one percent AUM sort of thing for in perpetuity. 531 00:23:46,760 --> 00:23:48,760 Speaker 1: But it sounds like you're looking for more inspiration and 532 00:23:48,760 --> 00:23:51,359 Speaker 1: insight Evan, and so yeah, I'd save that money to 533 00:23:51,520 --> 00:23:54,560 Speaker 1: fuel your path to financial independence for now, and then 534 00:23:54,800 --> 00:23:57,399 Speaker 1: as your nest egg grows and things get more and 535 00:23:57,440 --> 00:23:59,920 Speaker 1: more complicated and you feel like you do need somebody 536 00:24:00,080 --> 00:24:02,600 Speaker 1: else's opinion and how then that's when you want to 537 00:24:02,640 --> 00:24:05,239 Speaker 1: pivot there. But it sounds like that's not necessary right now. 538 00:24:05,359 --> 00:24:08,919 Speaker 2: Yeah. One other thing too, don't discount bloggers. I just 539 00:24:08,920 --> 00:24:12,919 Speaker 2: think about how the simplest sort of path to figuring 540 00:24:12,920 --> 00:24:15,560 Speaker 2: out if you have enough money to retire is having 541 00:24:15,560 --> 00:24:17,760 Speaker 2: twenty five times your annual expenses on hand. And that 542 00:24:17,880 --> 00:24:21,359 Speaker 2: was I think most popularized by mister money Mustache. But 543 00:24:21,400 --> 00:24:23,760 Speaker 2: there's a lot of folks out there like him in 544 00:24:24,240 --> 00:24:26,040 Speaker 2: I mean, I guess a lot of the bloggers that 545 00:24:26,520 --> 00:24:28,359 Speaker 2: that I don't even keep up with anymore, but a 546 00:24:28,359 --> 00:24:30,640 Speaker 2: lot of times those folks like I also think about 547 00:24:30,680 --> 00:24:32,680 Speaker 2: the mad Fientists, who we've also had on the show, 548 00:24:33,000 --> 00:24:34,600 Speaker 2: because one of the things he said was that he 549 00:24:34,640 --> 00:24:36,880 Speaker 2: was looking for I guess at the level of detail 550 00:24:36,920 --> 00:24:40,159 Speaker 2: beyond what we talk about on the podcast, that's Brandon 551 00:24:40,280 --> 00:24:42,320 Speaker 2: all the way after Mad Fientists, because he dives in 552 00:24:42,359 --> 00:24:45,040 Speaker 2: deep when it comes to figuring out exactly how to 553 00:24:45,160 --> 00:24:47,880 Speaker 2: execute and pull off early retirement, like whether it comes 554 00:24:47,880 --> 00:24:50,800 Speaker 2: to accounts or how to set up a roth conversion ladder, 555 00:24:50,880 --> 00:24:53,639 Speaker 2: all of these things that take a little bit of 556 00:24:53,800 --> 00:24:56,200 Speaker 2: finessing in order to pull off. But don't discount those 557 00:24:56,200 --> 00:24:58,439 Speaker 2: folks as well. There's a lot of folks out there 558 00:24:58,480 --> 00:25:01,160 Speaker 2: that create that have written great book. But I think 559 00:25:01,320 --> 00:25:05,080 Speaker 2: some of the more specific detail that these creators and 560 00:25:05,119 --> 00:25:07,239 Speaker 2: these bloggers have written about, I think that might be 561 00:25:07,280 --> 00:25:08,399 Speaker 2: a really helpful. Man. 562 00:25:08,600 --> 00:25:09,920 Speaker 1: You can get as nerdy as you want through with 563 00:25:09,960 --> 00:25:11,960 Speaker 1: some of those blogs. Yeah, I think, not super nerdy, 564 00:25:12,000 --> 00:25:14,600 Speaker 1: but still nerdy. Is is Carl's blog fifteen hundred days 565 00:25:14,800 --> 00:25:15,280 Speaker 1: and then he. 566 00:25:15,280 --> 00:25:17,720 Speaker 2: Gets really specific and with his numbers as well. He 567 00:25:17,760 --> 00:25:19,679 Speaker 2: literally tracks his net worth and puts it out there. 568 00:25:19,720 --> 00:25:21,800 Speaker 2: It tells you where his numbers are on a month 569 00:25:21,800 --> 00:25:22,840 Speaker 2: and month basis. That's right. 570 00:25:22,920 --> 00:25:24,520 Speaker 1: And if you want to get even nerdier than that, 571 00:25:24,760 --> 00:25:27,200 Speaker 1: early retirement now right or can I retire yet? Those 572 00:25:27,200 --> 00:25:30,879 Speaker 1: are other great like fire oriented blogs, so check those out. 573 00:25:30,720 --> 00:25:33,680 Speaker 2: To crunching the numbers, yea, and not even like there's 574 00:25:33,680 --> 00:25:35,680 Speaker 2: other man, there's so many writers out there. It makes 575 00:25:35,720 --> 00:25:38,000 Speaker 2: me think of the Frugal Woods. Oh and like that's 576 00:25:38,040 --> 00:25:43,160 Speaker 2: a little bit more maybe lifestyle inspired or Vermont homesteading. Yeah, yeah, 577 00:25:43,160 --> 00:25:45,040 Speaker 2: which is like a little bit less of the number 578 00:25:45,080 --> 00:25:47,120 Speaker 2: crunching and more. Okay, what do I want my life 579 00:25:47,160 --> 00:25:48,800 Speaker 2: to look like. So it doesn't necessarily have to be 580 00:25:48,880 --> 00:25:51,840 Speaker 2: about the specific details. Maybe what you're looking for is 581 00:25:52,400 --> 00:25:55,080 Speaker 2: a little inspiration on the yeah, on the lifestyle front, 582 00:25:55,119 --> 00:25:57,359 Speaker 2: So don't discount all the all the great bloggers out there. 583 00:25:57,359 --> 00:25:59,120 Speaker 2: We can link to some of those inner show notes. 584 00:25:59,160 --> 00:26:01,480 Speaker 1: The fire vibe be nice. Yeah, all right, Matt, let's 585 00:26:01,480 --> 00:26:05,679 Speaker 1: get to another question. This question comes from listener Sarah. 586 00:26:05,760 --> 00:26:08,280 Speaker 1: It's specifically about saving money on a really big expense. 587 00:26:08,800 --> 00:26:11,480 Speaker 5: Hey, Matt and Joel, this is Sarah from South of Boston. 588 00:26:11,920 --> 00:26:14,080 Speaker 5: I've been listening to you guys since Poor Not Poorties, 589 00:26:14,280 --> 00:26:16,520 Speaker 5: and I've listened to almost every episode of this point. 590 00:26:16,640 --> 00:26:19,120 Speaker 5: I just have a few left in my playlist. I'm 591 00:26:19,160 --> 00:26:21,560 Speaker 5: excited to ask you guys a question, but pretty sad 592 00:26:21,560 --> 00:26:24,200 Speaker 5: that I actually have this reason to do so. 593 00:26:24,200 --> 00:26:24,320 Speaker 4: So. 594 00:26:24,359 --> 00:26:27,520 Speaker 5: I have a four year old Australian shepherd dog named 595 00:26:27,520 --> 00:26:31,200 Speaker 5: Maggie who has severe heart problems. At about six months old, 596 00:26:31,280 --> 00:26:34,359 Speaker 5: she had heart surgery which solved some of the problems 597 00:26:34,440 --> 00:26:37,680 Speaker 5: but didn't alleviate all of them. We have to go annually, 598 00:26:37,800 --> 00:26:40,480 Speaker 5: at least usually every six months to the animal hospital 599 00:26:40,520 --> 00:26:42,760 Speaker 5: to get a check up to make sure she's still good. 600 00:26:43,080 --> 00:26:46,199 Speaker 5: On our last appointment, we found out that her numbers 601 00:26:46,200 --> 00:26:49,119 Speaker 5: have been increasing and she's getting closer to pre surgery rates, 602 00:26:49,640 --> 00:26:52,480 Speaker 5: and so we should probably consider soon another heart surgery. 603 00:26:53,720 --> 00:26:56,000 Speaker 5: It's not really required at this moment, but it's more 604 00:26:56,040 --> 00:26:59,280 Speaker 5: of a preliminary precaution before she actually hits heart failure 605 00:26:59,560 --> 00:27:01,840 Speaker 5: or has a their issues. So we have time and 606 00:27:01,920 --> 00:27:05,000 Speaker 5: things to consider, but it probably should be done because 607 00:27:05,000 --> 00:27:07,840 Speaker 5: she is part of our family. My question to you 608 00:27:07,880 --> 00:27:10,720 Speaker 5: guys isn't about how to get the money or say 609 00:27:10,800 --> 00:27:13,480 Speaker 5: for it, since it is about seven to ten thousand dollars, 610 00:27:13,920 --> 00:27:17,320 Speaker 5: but about anything we could potentially do to help reduce 611 00:27:17,400 --> 00:27:22,200 Speaker 5: that cost. We're already going to teaching school for animal hospital, 612 00:27:22,520 --> 00:27:25,080 Speaker 5: so that helps reduce the cost. We tried to do 613 00:27:25,400 --> 00:27:27,560 Speaker 5: health insurance for a while on her, but since it 614 00:27:27,600 --> 00:27:29,880 Speaker 5: was a pre existing condition, it kind of didn't count 615 00:27:29,920 --> 00:27:33,840 Speaker 5: really for anything and it wasn't covered any other ideas 616 00:27:33,880 --> 00:27:36,240 Speaker 5: you have, but how we can reduce its expensive cost 617 00:27:36,520 --> 00:27:40,399 Speaker 5: would be greatly appreciated. Thank you. Best friends out Oh. 618 00:27:40,280 --> 00:27:43,080 Speaker 1: Matt is Sarah an honorary best friend. 619 00:27:42,680 --> 00:27:45,240 Speaker 2: I think so if you've been listening to us for 620 00:27:45,280 --> 00:27:47,359 Speaker 2: that long since the poorn up poor days. Oh, for sure, 621 00:27:47,400 --> 00:27:48,959 Speaker 2: you are an honorary bestie. 622 00:27:49,040 --> 00:27:52,879 Speaker 1: You've put up with some crap at times, right, So, Shenanigan, 623 00:27:53,000 --> 00:27:54,320 Speaker 1: surprise you have not gotten tired of us. 624 00:27:54,359 --> 00:27:56,639 Speaker 2: I will say, I'm sorry to hear about Maggie's health problems, 625 00:27:56,680 --> 00:27:59,040 Speaker 2: your dog there, Glad you had a bit of time 626 00:27:59,119 --> 00:28:03,760 Speaker 2: to plan a save for this really big expense. And Joel, 627 00:28:03,760 --> 00:28:06,080 Speaker 2: I'm gonna admit, I'm like, we're not experts on this, 628 00:28:06,240 --> 00:28:08,000 Speaker 2: but I think we can at least offer some of 629 00:28:08,080 --> 00:28:10,639 Speaker 2: our thoughts when it comes to finding ways to perhaps 630 00:28:11,000 --> 00:28:14,359 Speaker 2: pay less for this big, unwelcome expense. 631 00:28:14,440 --> 00:28:16,560 Speaker 1: Let's start by talking about one thing that Sarah mentioned, 632 00:28:16,560 --> 00:28:19,639 Speaker 1: which is pet insurance. And this is something that I 633 00:28:19,800 --> 00:28:22,760 Speaker 1: have read enough about over the years where I feel 634 00:28:22,880 --> 00:28:26,399 Speaker 1: pretty confident in kind of where I've landed. And because 635 00:28:26,440 --> 00:28:28,439 Speaker 1: this is a pre existing condition, by the way, it's 636 00:28:28,520 --> 00:28:31,760 Speaker 1: highly unlikely that any insurance out there would allow you 637 00:28:31,880 --> 00:28:33,800 Speaker 1: to sign up and get a policy for Maggie and 638 00:28:33,800 --> 00:28:35,560 Speaker 1: then they're going to pay for the surgery. Right, And 639 00:28:35,600 --> 00:28:38,400 Speaker 1: it sounds like you know that Sarah so not telling 640 00:28:38,400 --> 00:28:40,880 Speaker 1: you anything you don't know. But here's the other thing. 641 00:28:40,960 --> 00:28:44,040 Speaker 1: Pet insurance isn't a great product. For most folks anyway, 642 00:28:44,400 --> 00:28:48,840 Speaker 1: we would rather see most pet owners self insured, and 643 00:28:49,000 --> 00:28:51,360 Speaker 1: that is going to mean typically having thousands of dollars 644 00:28:51,360 --> 00:28:54,440 Speaker 1: extra in savings as a plan for a worst case 645 00:28:54,440 --> 00:28:57,960 Speaker 1: scenario like this. And I think, Matt, some people believe 646 00:28:58,160 --> 00:29:01,440 Speaker 1: or want pet insurance to act like a security blanket, 647 00:29:02,120 --> 00:29:04,480 Speaker 1: but every analysis that I've read finds that they're just 648 00:29:04,480 --> 00:29:06,760 Speaker 1: not as great as they seem in the brochure or 649 00:29:06,760 --> 00:29:08,440 Speaker 1: on the pet insurers website, and that there are just 650 00:29:08,840 --> 00:29:12,120 Speaker 1: hoops to jump through. There are certain breeds that aren't covered, 651 00:29:12,160 --> 00:29:16,080 Speaker 1: there are certain surgery types that aren't covered, and the 652 00:29:16,160 --> 00:29:19,000 Speaker 1: costs cannot weigh the benefits. And so if something like 653 00:29:19,040 --> 00:29:22,080 Speaker 1: this happens and the insurer does pay well, then hey, 654 00:29:22,120 --> 00:29:23,560 Speaker 1: you may not like a bandit, but I think for 655 00:29:23,600 --> 00:29:26,040 Speaker 1: the average person, self ensuring is going to be a 656 00:29:26,040 --> 00:29:28,200 Speaker 1: better option than going with the pet insurance totally. 657 00:29:28,480 --> 00:29:31,640 Speaker 2: Yeah. I also love that Sarah said that she is 658 00:29:32,080 --> 00:29:34,840 Speaker 2: at a or has been going to this teaching hospital, 659 00:29:35,040 --> 00:29:38,120 Speaker 2: which really should save you some serious money. But man, 660 00:29:38,160 --> 00:29:41,120 Speaker 2: I would totally be calling around a few other vets 661 00:29:41,160 --> 00:29:43,600 Speaker 2: there who performed the surgery in order to get a 662 00:29:43,680 --> 00:29:47,160 Speaker 2: quote as well. I don't know exactly what this surgery involves. 663 00:29:47,240 --> 00:29:49,760 Speaker 2: But based on a quick search, seven thousand dollars does 664 00:29:49,760 --> 00:29:52,200 Speaker 2: seem like a pretty dang good deal. It is worth 665 00:29:52,240 --> 00:29:55,360 Speaker 2: casting your net though out there to see what some 666 00:29:55,400 --> 00:29:57,880 Speaker 2: other well reviewed vets might charge you. Seems like you're 667 00:29:57,960 --> 00:30:00,560 Speaker 2: already getting a good rate. Way side that we would 668 00:30:00,600 --> 00:30:03,720 Speaker 2: encourage you to check out is pet helpfinder dot org. 669 00:30:04,120 --> 00:30:06,000 Speaker 2: You should be able to find a list of local 670 00:30:06,080 --> 00:30:09,760 Speaker 2: vets who offer discounted services, but they might also just 671 00:30:09,800 --> 00:30:13,240 Speaker 2: be for more regular and inexpensive services like getting what 672 00:30:13,360 --> 00:30:17,680 Speaker 2: is it kennel cough injections and different things that the 673 00:30:17,720 --> 00:30:19,880 Speaker 2: pets that your dogs and cats need on a more 674 00:30:19,920 --> 00:30:20,600 Speaker 2: annual basis. 675 00:30:20,600 --> 00:30:22,320 Speaker 1: I think about this, Matt, when I have like a 676 00:30:22,360 --> 00:30:25,400 Speaker 1: bigger expense for my car. Let's say, I mean you 677 00:30:25,440 --> 00:30:28,000 Speaker 1: just had recently had a timing belt replaced, right, And 678 00:30:28,440 --> 00:30:30,520 Speaker 1: sometimes I'll just google and be like, well, okay, what 679 00:30:30,560 --> 00:30:32,080 Speaker 1: should the average price be for this? And there are 680 00:30:32,120 --> 00:30:36,360 Speaker 1: websites that list out that information of what mechanics in 681 00:30:36,360 --> 00:30:38,920 Speaker 1: your area typically charge, And then I'll use that to say, oh, 682 00:30:38,960 --> 00:30:40,560 Speaker 1: does this seem like a good price or not? And 683 00:30:40,640 --> 00:30:43,800 Speaker 1: then I'll even just call other mechanics that I know 684 00:30:43,840 --> 00:30:45,840 Speaker 1: and trust that are close by and say, hey, listen, 685 00:30:45,880 --> 00:30:47,720 Speaker 1: this is what I'm looking to have done, And oftentimes 686 00:30:47,760 --> 00:30:48,920 Speaker 1: I'll give me a quote over the phone, like I 687 00:30:48,920 --> 00:30:50,800 Speaker 1: don't even have to bring the car in, right, because 688 00:30:50,800 --> 00:30:52,400 Speaker 1: that does sound like a pain. You might be able 689 00:30:52,440 --> 00:30:54,760 Speaker 1: to do the same thing here, Sarah, just by calling 690 00:30:54,800 --> 00:30:56,800 Speaker 1: a few vets and saying, here's kind of the surgery 691 00:30:56,840 --> 00:30:59,320 Speaker 1: we're up against. Can you tell me roughly how much 692 00:30:59,360 --> 00:31:02,000 Speaker 1: it costs to perform this on my dog age and 693 00:31:02,040 --> 00:31:02,880 Speaker 1: breed right totally? 694 00:31:02,960 --> 00:31:05,160 Speaker 2: Which I will say, I think there might be some criticism, 695 00:31:05,320 --> 00:31:07,440 Speaker 2: some pushback if some folks who are like dudes, that's 696 00:31:07,480 --> 00:31:10,600 Speaker 2: like way too pragmatic, Like that's why this isn't car insurance, 697 00:31:10,600 --> 00:31:12,320 Speaker 2: this isn't a car repair. This is like you know, 698 00:31:12,480 --> 00:31:14,400 Speaker 2: a pet that who I love dearly. This is like 699 00:31:14,400 --> 00:31:16,880 Speaker 2: a member of the family. But the fact is we 700 00:31:16,920 --> 00:31:19,120 Speaker 2: say the same thing when it comes to personal healthcare 701 00:31:19,280 --> 00:31:21,760 Speaker 2: as well, like when as far as calling around even 702 00:31:21,800 --> 00:31:24,760 Speaker 2: doing medical tourism, and the fact that this isn't like 703 00:31:24,800 --> 00:31:27,760 Speaker 2: an emergency surgery or a procedure that needs to be 704 00:31:27,760 --> 00:31:30,160 Speaker 2: done right now. Man, You've got time on your side 705 00:31:30,160 --> 00:31:32,560 Speaker 2: to be able to call around and like if how 706 00:31:32,560 --> 00:31:34,640 Speaker 2: a Healthcare blue Book is for for humans. Yes, I 707 00:31:34,640 --> 00:31:37,280 Speaker 2: would be completely willing to go to a different city 708 00:31:37,360 --> 00:31:39,600 Speaker 2: or even drive to a nearby state if it was 709 00:31:39,640 --> 00:31:42,000 Speaker 2: going to save me a few thousand dollars because of 710 00:31:42,040 --> 00:31:44,840 Speaker 2: the ability to not only find the best care that 711 00:31:44,920 --> 00:31:47,720 Speaker 2: might be out there for my pet, but also to 712 00:31:47,760 --> 00:31:48,719 Speaker 2: get the best price too. 713 00:31:48,840 --> 00:31:50,960 Speaker 1: Yeah, and I totally get the desire to shop around 714 00:31:51,000 --> 00:31:52,080 Speaker 1: and say, I think it's a good desire. 715 00:31:52,120 --> 00:31:53,240 Speaker 2: I mean, I think that is. 716 00:31:53,840 --> 00:31:56,520 Speaker 1: When you're in the caf art seat, when you have 717 00:31:57,160 --> 00:32:00,520 Speaker 1: time on your side, which in this case, Sarah, I 718 00:32:00,560 --> 00:32:03,320 Speaker 1: would be doing the same thing. So give it a go, 719 00:32:03,400 --> 00:32:05,680 Speaker 1: but know that the savings might be slimmed to non existent, 720 00:32:05,720 --> 00:32:07,560 Speaker 1: kind of like you pointed out, Matt, that then maybe 721 00:32:07,600 --> 00:32:09,720 Speaker 1: the rate you're getting is actually pretty good based on 722 00:32:09,720 --> 00:32:12,120 Speaker 1: a quick Google search from US. And if you tell 723 00:32:12,120 --> 00:32:14,719 Speaker 1: your vet maybe that the surgery is expensive, and you 724 00:32:14,800 --> 00:32:20,600 Speaker 1: ask them for options for discounts, there's a good chance 725 00:32:20,640 --> 00:32:22,600 Speaker 1: that they're going to recommend a payment plan or a 726 00:32:22,640 --> 00:32:26,680 Speaker 1: credit card, and we would advise against that because like 727 00:32:26,960 --> 00:32:28,960 Speaker 1: one of the bigger companies in this space care credit 728 00:32:29,240 --> 00:32:32,360 Speaker 1: they charge rates north of thirty percent. They're higher than 729 00:32:32,560 --> 00:32:35,320 Speaker 1: what a credit card would cost you, and yeah, maybe 730 00:32:35,360 --> 00:32:37,400 Speaker 1: they're going to offer some sort of intro rate, but 731 00:32:37,560 --> 00:32:39,840 Speaker 1: still it sounds like you have the money, Sarah. We 732 00:32:40,000 --> 00:32:42,640 Speaker 1: just prefer you to get the service more cheaply if possible, 733 00:32:42,720 --> 00:32:45,320 Speaker 1: might not be, but just to pay cash in full 734 00:32:45,720 --> 00:32:49,320 Speaker 1: when the time comes. Just rather you suck it up 735 00:32:49,360 --> 00:32:51,440 Speaker 1: and fork the cash over than try to lessen the 736 00:32:51,480 --> 00:32:53,600 Speaker 1: blow by paying off the surgery over time. It's kind 737 00:32:53,640 --> 00:32:55,840 Speaker 1: of like buy now, pay later for your pet or 738 00:32:55,840 --> 00:32:57,120 Speaker 1: something like that. And you're like, oh, I can pay 739 00:32:57,160 --> 00:32:59,520 Speaker 1: an installments. It just won't feel as painful. And I 740 00:32:59,560 --> 00:33:01,680 Speaker 1: get that it is to do that, but I just 741 00:33:01,680 --> 00:33:03,280 Speaker 1: don't think it's the best financial decision. 742 00:33:03,960 --> 00:33:06,240 Speaker 2: I would also use this opportunity again because it's not 743 00:33:06,800 --> 00:33:08,760 Speaker 2: you're not on a tight time schedule. Head over to 744 00:33:08,800 --> 00:33:10,960 Speaker 2: howdimoney dot com for it slash credit card tool and 745 00:33:11,000 --> 00:33:12,760 Speaker 2: get you a card that's going to work for you 746 00:33:12,800 --> 00:33:16,080 Speaker 2: from a like a points or reward standpoint. Because again, 747 00:33:16,120 --> 00:33:17,520 Speaker 2: this is something that you know you're going to spend. 748 00:33:17,560 --> 00:33:19,720 Speaker 2: You got the cash on hand, so and like the 749 00:33:19,720 --> 00:33:21,560 Speaker 2: way we use credit cards, there's no harm at all 750 00:33:21,680 --> 00:33:23,600 Speaker 2: to make the most of these dollars that you're spending 751 00:33:24,280 --> 00:33:24,440 Speaker 2: use you. 752 00:33:24,440 --> 00:33:26,040 Speaker 1: Can pay it off in one fell swoop when you're done, 753 00:33:26,040 --> 00:33:27,960 Speaker 1: and heck, yeah, maybe you got some pre flights out 754 00:33:27,960 --> 00:33:30,800 Speaker 1: of it, or a nice sweet sign up bonus and 755 00:33:30,920 --> 00:33:32,760 Speaker 1: a new credit card that's going to offer you some 756 00:33:32,760 --> 00:33:34,120 Speaker 1: perks moving forward to totally. 757 00:33:34,200 --> 00:33:36,400 Speaker 2: And I think that this is a good heads up 758 00:33:36,440 --> 00:33:39,480 Speaker 2: to any aspiring pet owners, Like if you're like, man, 759 00:33:39,520 --> 00:33:41,920 Speaker 2: I really want a cat or a dog or horse 760 00:33:42,000 --> 00:33:44,600 Speaker 2: or I don't know, like whatever pet, that it might 761 00:33:44,720 --> 00:33:47,600 Speaker 2: have some of these expensive procedures, Like it costs a 762 00:33:47,600 --> 00:33:50,680 Speaker 2: lot of even if you are adopting a pet from 763 00:33:50,720 --> 00:33:52,680 Speaker 2: the pen, like there are additional you know, you got 764 00:33:52,680 --> 00:33:56,080 Speaker 2: your monthly medicines and food, the additional expenses that come 765 00:33:56,080 --> 00:33:58,920 Speaker 2: along with pet ownership. There's more responsibility, so just make 766 00:33:58,960 --> 00:34:02,000 Speaker 2: sure you're taking that into account before you got there. 767 00:34:02,040 --> 00:34:04,560 Speaker 2: And Adam member to your family reminds me of our episode. 768 00:34:04,600 --> 00:34:06,840 Speaker 2: Everything costs more than you think. Pets cost more than 769 00:34:06,880 --> 00:34:10,319 Speaker 2: you think. A plastic episode Joel specifically, my buddy Mark 770 00:34:10,440 --> 00:34:14,320 Speaker 2: just brought home a little Golden Retriever puppy, the cutest 771 00:34:14,360 --> 00:34:16,000 Speaker 2: thing ever. O C got to play with it on 772 00:34:16,000 --> 00:34:18,279 Speaker 2: New Year's Eve and then I ran it to him 773 00:34:18,280 --> 00:34:20,560 Speaker 2: two days later and I was like, how's it going, buddy, 774 00:34:20,600 --> 00:34:22,200 Speaker 2: and he said, oh, just spent the night at the 775 00:34:22,239 --> 00:34:25,759 Speaker 2: emergency vet and I spent like nine hundred dollars because 776 00:34:25,760 --> 00:34:28,200 Speaker 2: he had some sort of stomach issue and he had 777 00:34:28,239 --> 00:34:31,800 Speaker 2: been trying to convince me he had been trying to 778 00:34:31,800 --> 00:34:33,239 Speaker 2: get He's like, there's more in the litter. You can 779 00:34:33,239 --> 00:34:33,720 Speaker 2: get one. 780 00:34:33,560 --> 00:34:35,640 Speaker 1: Too, And I was like, oh my gosh, you almost 781 00:34:35,680 --> 00:34:38,720 Speaker 1: won my heart these Golden Retriever puppy pictures, but alast 782 00:34:38,760 --> 00:34:39,320 Speaker 1: I said. 783 00:34:39,080 --> 00:34:40,120 Speaker 2: No, and they think I'm good. 784 00:34:40,160 --> 00:34:41,600 Speaker 1: When I had that combo with him, I was like, 785 00:34:41,640 --> 00:34:44,759 Speaker 1: I made the right decision, even though yeah, it's a cute. 786 00:34:44,760 --> 00:34:47,319 Speaker 1: It's a cute pupp and animals are awesome. We've got 787 00:34:47,400 --> 00:34:49,560 Speaker 1: two cats ourselves, but they're cheaper than dogs. 788 00:34:49,600 --> 00:34:51,239 Speaker 2: You don't need to throw a dog into it. Not 789 00:34:51,360 --> 00:34:52,799 Speaker 2: right now, at least. All right, we've got more to 790 00:34:52,800 --> 00:34:55,359 Speaker 2: get to. We're gonna talk about some crowd source real 791 00:34:55,440 --> 00:34:57,520 Speaker 2: estate investing. We'll get to that and more right after this. 792 00:35:05,239 --> 00:35:07,279 Speaker 1: All right, Matt, we're back. Now let's get to the 793 00:35:07,280 --> 00:35:10,520 Speaker 1: Facebook question of the week. This one comes from Celeste. 794 00:35:10,719 --> 00:35:12,400 Speaker 1: And by the way, if you're not a member of 795 00:35:12,480 --> 00:35:14,680 Speaker 1: the how to Money Facebook group, go check it out. 796 00:35:15,239 --> 00:35:16,560 Speaker 2: How's he doing it with your life? I know? 797 00:35:16,719 --> 00:35:20,520 Speaker 1: So here's her question, justa has anyone invested with Arrived 798 00:35:20,760 --> 00:35:23,280 Speaker 1: would like to know your thoughts on this crowdsourcing style 799 00:35:23,400 --> 00:35:24,920 Speaker 1: of real estate investing. 800 00:35:25,120 --> 00:35:28,440 Speaker 2: Matt, you want to kick this office a short one. Yeah, 801 00:35:28,520 --> 00:35:32,319 Speaker 2: these different crowdfunding like I mean, there's apps, but there's 802 00:35:32,400 --> 00:35:34,799 Speaker 2: sites as well. This is a common question. Our answer 803 00:35:34,880 --> 00:35:38,360 Speaker 2: is essentially always don't do it real estate. It always 804 00:35:38,360 --> 00:35:41,239 Speaker 2: comes with fees, but the fees are even bigger when 805 00:35:41,320 --> 00:35:44,279 Speaker 2: other people are sourcing the properties for you. When there's 806 00:35:44,320 --> 00:35:46,440 Speaker 2: other people out there who are managing the properties, and 807 00:35:46,440 --> 00:35:48,520 Speaker 2: that's certainly true with Arrived. 808 00:35:49,280 --> 00:35:51,560 Speaker 1: Layers of bureaucracy. You have the fund right yeah. 809 00:35:51,640 --> 00:35:54,120 Speaker 2: Yeah, So like as it's under management fees, there are 810 00:35:54,239 --> 00:35:59,000 Speaker 2: sourcing fees, gross rents fees, property management fees. All of 811 00:35:59,040 --> 00:36:01,600 Speaker 2: that is going to lead to you receiving less money 812 00:36:01,600 --> 00:36:03,960 Speaker 2: from this company. But then on top of that the 813 00:36:04,080 --> 00:36:07,600 Speaker 2: liquidity that is also minimal when you invest in real 814 00:36:07,680 --> 00:36:10,360 Speaker 2: estate via a crowdfunded website. And the same is true 815 00:36:10,760 --> 00:36:14,160 Speaker 2: certainly with Arrived. We just don't see enough of an 816 00:36:14,320 --> 00:36:17,279 Speaker 2: upside to justify the fees as well as locking up 817 00:36:17,360 --> 00:36:19,440 Speaker 2: your funds for years on end. 818 00:36:19,600 --> 00:36:22,400 Speaker 1: Yeah, yeah, right, And I think they can charge this 819 00:36:22,560 --> 00:36:25,840 Speaker 1: much because they're selling a turn key solution to investing 820 00:36:25,920 --> 00:36:27,719 Speaker 1: in real estate. And so I think there are some 821 00:36:27,719 --> 00:36:31,399 Speaker 1: people who just glorify this real estate investing in general, Matt, 822 00:36:31,400 --> 00:36:33,520 Speaker 1: and they think of, oh, this is the way for 823 00:36:33,560 --> 00:36:35,279 Speaker 1: me to build wealth. And if I don't have some 824 00:36:35,880 --> 00:36:38,080 Speaker 1: skin of the game, some exposure to real estate, then 825 00:36:38,120 --> 00:36:41,600 Speaker 1: I'm just not doing it right. Stocks they're so mid right, 826 00:36:41,680 --> 00:36:44,080 Speaker 1: they're so beta. I don't know what the gen z 827 00:36:44,160 --> 00:36:46,680 Speaker 1: are just saying these days. But when you dig into 828 00:36:46,680 --> 00:36:50,800 Speaker 1: the returns of the site, the returns of specific investments 829 00:36:50,800 --> 00:36:53,200 Speaker 1: on arrived, they make those public. We can link to 830 00:36:53,640 --> 00:36:56,480 Speaker 1: that page in the show notes. The average total returns 831 00:36:56,480 --> 00:36:59,200 Speaker 1: are not going to blow you away. And I think 832 00:36:59,200 --> 00:37:01,480 Speaker 1: it just sounds see at least a certain type of 833 00:37:01,520 --> 00:37:03,919 Speaker 1: person to become a real estate investor. And again, Matt 834 00:37:03,920 --> 00:37:06,320 Speaker 1: and I, we are real estate investors. We just don't 835 00:37:07,440 --> 00:37:10,480 Speaker 1: sell it in a way that is unseemly and we 836 00:37:10,480 --> 00:37:12,200 Speaker 1: don't talk about it in a way that isn't based 837 00:37:12,200 --> 00:37:14,799 Speaker 1: in reality. But you know, our take is that the 838 00:37:14,800 --> 00:37:18,600 Speaker 1: whole goal of investing is to make money, Yeah, not 839 00:37:18,960 --> 00:37:21,759 Speaker 1: to like think you're cool, and so you know, we 840 00:37:21,800 --> 00:37:23,960 Speaker 1: think that investing in boring all index funds is going 841 00:37:24,000 --> 00:37:25,520 Speaker 1: to take up less brain space, it's going to lead 842 00:37:25,560 --> 00:37:30,239 Speaker 1: to better results. And by investing through specific real estate 843 00:37:30,239 --> 00:37:33,920 Speaker 1: properties through Arrived, yeah, maybe you'll do well, and you'll 844 00:37:34,120 --> 00:37:37,440 Speaker 1: probably do better than sticking it in a same use 845 00:37:37,480 --> 00:37:40,520 Speaker 1: account with a big bank, of course. But those are 846 00:37:40,680 --> 00:37:43,760 Speaker 1: apples and tomatoes, right, Like, those are not even close compared. 847 00:37:43,760 --> 00:37:45,319 Speaker 1: I guess they're both read and about the same size. 848 00:37:45,320 --> 00:37:49,000 Speaker 1: So maybe maybe it's actually like fruit apples and broccoli, 849 00:37:49,080 --> 00:37:52,000 Speaker 1: But yeah, I would say they're they're very different things. 850 00:37:52,360 --> 00:37:54,520 Speaker 1: And the returns for a lot of the properties on 851 00:37:54,600 --> 00:37:56,960 Speaker 1: a Arrive don't don't even close to blow me away. 852 00:37:57,239 --> 00:37:58,800 Speaker 2: No, well on the top of it. So I actually, 853 00:37:58,880 --> 00:38:00,560 Speaker 2: you know how I am with numbers, and so I 854 00:38:00,600 --> 00:38:05,400 Speaker 2: actually created Google sheets because I wanted to figure out like, okay, 855 00:38:05,680 --> 00:38:07,800 Speaker 2: like there are some on here that are pretty impressive, 856 00:38:07,800 --> 00:38:09,280 Speaker 2: but then there's a whole lot of them that aren't. 857 00:38:09,719 --> 00:38:12,640 Speaker 2: And if you average every single investment that they have 858 00:38:12,760 --> 00:38:15,480 Speaker 2: listed there and calculate the annualized returns based on the 859 00:38:15,480 --> 00:38:18,960 Speaker 2: timeframe that the money is invested, on average, you're looking 860 00:38:18,960 --> 00:38:20,040 Speaker 2: at three point three percent. 861 00:38:20,360 --> 00:38:22,840 Speaker 1: That does not take into account appreciation of the property, 862 00:38:22,840 --> 00:38:23,560 Speaker 1: though yes it does it. 863 00:38:24,280 --> 00:38:27,960 Speaker 2: It takes appreciation profits paid out basically the total return 864 00:38:28,000 --> 00:38:30,440 Speaker 2: on investments of those properties. All right, Like, yes, there 865 00:38:30,440 --> 00:38:33,520 Speaker 2: are rand the numbers. There are some that and of 866 00:38:33,600 --> 00:38:36,120 Speaker 2: course they're closer to the top, right, but like there 867 00:38:36,120 --> 00:38:38,080 Speaker 2: are a couple where it's like annualized out to be 868 00:38:38,200 --> 00:38:40,759 Speaker 2: something like close to sixty percent, I think, or but 869 00:38:40,960 --> 00:38:43,480 Speaker 2: literally it's only two of them, and there's over three 870 00:38:43,560 --> 00:38:46,560 Speaker 2: hundred projects and properties on there, and some of those 871 00:38:46,640 --> 00:38:48,600 Speaker 2: are negative and some of those are really down close 872 00:38:48,640 --> 00:38:48,920 Speaker 2: to zero. 873 00:38:49,000 --> 00:38:52,640 Speaker 1: So maybe a HILD savings account is better, Yeah, especially. 874 00:38:52,239 --> 00:38:55,600 Speaker 2: NETA fees, and I think like sometimes we'll mention reets 875 00:38:55,600 --> 00:38:58,359 Speaker 2: as well, So specifically Vanguard's V and Q that can 876 00:38:58,719 --> 00:39:01,360 Speaker 2: offer you some real estate exposure for a low price 877 00:39:01,480 --> 00:39:04,680 Speaker 2: if you are completely set on having some real estate 878 00:39:04,719 --> 00:39:07,359 Speaker 2: in your portfolio. But even still, like if you head 879 00:39:07,400 --> 00:39:09,760 Speaker 2: over there, you are like over the past ten years, 880 00:39:10,040 --> 00:39:13,440 Speaker 2: you're looking at an average analyzed rate of five percent return. 881 00:39:13,480 --> 00:39:15,719 Speaker 2: And again that's not that far from three point three 882 00:39:15,800 --> 00:39:19,040 Speaker 2: percent compared to guess what the SMPGOL has done over 883 00:39:19,040 --> 00:39:20,120 Speaker 2: the past ten years. 884 00:39:20,400 --> 00:39:25,000 Speaker 1: Past second, say, uh, fourteen point two, so close over 885 00:39:25,200 --> 00:39:27,920 Speaker 1: thirteen percent. Okay, what I was gonna say thirteen point eight, but. 886 00:39:27,960 --> 00:39:30,760 Speaker 2: Like, come on, man, like yes, I will say reads 887 00:39:30,800 --> 00:39:32,640 Speaker 2: are better because, like you're looking at a pretty low 888 00:39:32,640 --> 00:39:35,080 Speaker 2: expense ratio compared to the fees that you typically get 889 00:39:35,120 --> 00:39:38,720 Speaker 2: with somebody like Arrived or even fund Raise, because Fundriise 890 00:39:38,760 --> 00:39:40,879 Speaker 2: is pretty good from a fee standpoint, like their fees 891 00:39:40,880 --> 00:39:43,759 Speaker 2: are the lowest. But even still, I would not necessarily 892 00:39:43,840 --> 00:39:46,680 Speaker 2: recommend it. I would recommend to save up invest in 893 00:39:46,680 --> 00:39:48,759 Speaker 2: real estate where you live, because I think that's where 894 00:39:48,840 --> 00:39:51,520 Speaker 2: you can get some of that edge of investing in 895 00:39:51,520 --> 00:39:54,080 Speaker 2: real estate. But of course it comes with a little 896 00:39:54,080 --> 00:39:57,200 Speaker 2: bit more of a hands on, part time job like quality. 897 00:39:57,400 --> 00:39:59,920 Speaker 2: But maybe in addition to that, like finishing out your BA, 898 00:40:00,320 --> 00:40:02,640 Speaker 2: maybe turning it into an airbnb, maybe buying a duplex 899 00:40:02,680 --> 00:40:05,200 Speaker 2: around the corner, maybe your first property, saving up a 900 00:40:05,239 --> 00:40:06,799 Speaker 2: little bit more, and you buy the duplex, you live 901 00:40:06,840 --> 00:40:08,279 Speaker 2: in half of it, you ran out the other half. 902 00:40:08,600 --> 00:40:10,200 Speaker 2: I just think there are just too many downsides to 903 00:40:10,280 --> 00:40:13,480 Speaker 2: the crowdfunded version of real estate investing. Yes, it's easy, 904 00:40:13,520 --> 00:40:15,200 Speaker 2: but you pay for that eaither there's a lot of 905 00:40:15,239 --> 00:40:18,440 Speaker 2: middle men, right, and you're right like all, the advantages 906 00:40:18,480 --> 00:40:21,200 Speaker 2: of real estate typically come from owning the property yourself 907 00:40:21,200 --> 00:40:23,480 Speaker 2: and being able to make a good buy on the 908 00:40:23,480 --> 00:40:26,160 Speaker 2: front end because that market is less efficient than the 909 00:40:26,200 --> 00:40:29,880 Speaker 2: stock market, and you can with leverage and smart smart 910 00:40:30,040 --> 00:40:33,160 Speaker 2: purchases of real estate come out ahead over time, maybe 911 00:40:33,160 --> 00:40:35,239 Speaker 2: not even on a month to month basis, but over 912 00:40:35,280 --> 00:40:38,080 Speaker 2: the decades. And so it is a long term play 913 00:40:38,080 --> 00:40:40,360 Speaker 2: owning real estate. But I think if you want to 914 00:40:40,400 --> 00:40:43,000 Speaker 2: get into that, the crowdfunded sites are just not the 915 00:40:43,040 --> 00:40:44,960 Speaker 2: way to go. Yeah, let's take another quick one. This 916 00:40:45,000 --> 00:40:46,920 Speaker 2: one is from Josh and he wrote, my wife and 917 00:40:46,920 --> 00:40:49,080 Speaker 2: I have decided to get rid of our second car, 918 00:40:49,440 --> 00:40:51,919 Speaker 2: but we've never sold a car before. The car still 919 00:40:51,960 --> 00:40:55,040 Speaker 2: has about twelve hundred dollars due on the loan, which 920 00:40:55,080 --> 00:40:57,440 Speaker 2: we could pay off now if we wanted to. Should 921 00:40:57,520 --> 00:40:59,719 Speaker 2: we pay off the loan before selling or just sell 922 00:40:59,760 --> 00:41:02,440 Speaker 2: it with the loan still active? The car is a 923 00:41:02,560 --> 00:41:05,400 Speaker 2: twenty twenty Hyundai Elantra Joel, What would you do? 924 00:41:05,520 --> 00:41:08,040 Speaker 1: Well, Normally, Matt, we would say don't sell that car. 925 00:41:08,040 --> 00:41:08,640 Speaker 2: It's a baby. 926 00:41:08,680 --> 00:41:10,479 Speaker 1: But if you're selling it because and you're not adding 927 00:41:10,520 --> 00:41:12,800 Speaker 1: a different car into your fleet, this is money in 928 00:41:12,840 --> 00:41:14,600 Speaker 1: the bank. Yeah, yeah, and this is what did you say, 929 00:41:14,600 --> 00:41:17,840 Speaker 1: this is your claim to wealth and riches, like owning 930 00:41:17,880 --> 00:41:19,359 Speaker 1: one car for what how long? Now? 931 00:41:19,480 --> 00:41:22,000 Speaker 2: Oh, over seventeen years? Yeah, like literally, I don't mean, 932 00:41:22,000 --> 00:41:23,360 Speaker 2: I don't want to boil it down to that, but 933 00:41:23,440 --> 00:41:26,719 Speaker 2: because of the additional costs associated with owning a car, 934 00:41:27,000 --> 00:41:29,080 Speaker 2: there's a lot to be gained were you to invest 935 00:41:29,080 --> 00:41:30,880 Speaker 2: that money rather than see it depreciate. 936 00:41:31,000 --> 00:41:33,359 Speaker 1: I mean, if you think on the very very very 937 00:41:33,360 --> 00:41:37,120 Speaker 1: low side insurance taxes depreciation, let's say you saved eight 938 00:41:37,120 --> 00:41:39,320 Speaker 1: thousand dollars a year, which I'm for most people to 939 00:41:39,360 --> 00:41:42,640 Speaker 1: be even more than that eight times. I mean, you're 940 00:41:42,680 --> 00:41:44,080 Speaker 1: talking about having saved. 941 00:41:43,800 --> 00:41:45,000 Speaker 2: Like a lot of money, almost sudden. 942 00:41:45,040 --> 00:41:46,680 Speaker 1: Yeah, and then when you talk about investing that money, 943 00:41:46,719 --> 00:41:48,759 Speaker 1: it's amazing how quickly it adds up just having one 944 00:41:48,760 --> 00:41:51,640 Speaker 1: fewer vehicle in your life. Granted, it's a big decision, 945 00:41:51,719 --> 00:41:54,840 Speaker 1: big life change, and it obviously doesn't work for everyone, 946 00:41:54,880 --> 00:41:57,840 Speaker 1: but man, Matt more, people really really really should consider 947 00:41:57,920 --> 00:41:59,080 Speaker 1: going down this route totally. 948 00:41:59,160 --> 00:42:01,320 Speaker 2: Yeah, And I would just paying off the loan first 949 00:42:01,360 --> 00:42:04,160 Speaker 2: before listing it for sale. I think it'll just make 950 00:42:04,200 --> 00:42:06,719 Speaker 2: selling the car that much easier. Where you have the 951 00:42:06,800 --> 00:42:09,360 Speaker 2: title in hand, that seems like it would make for 952 00:42:09,360 --> 00:42:11,520 Speaker 2: a smoother process because I think there might be folks 953 00:42:11,560 --> 00:42:13,439 Speaker 2: out there who try to sell a car that they 954 00:42:13,600 --> 00:42:16,760 Speaker 2: can't pay off in advance. They're kind of stuck between 955 00:42:16,760 --> 00:42:18,960 Speaker 2: a rock and a hard place. And it's totally doable, 956 00:42:19,320 --> 00:42:21,600 Speaker 2: but you've got to include the lender in that process. 957 00:42:21,880 --> 00:42:23,839 Speaker 2: But without a third party involved, I think you can 958 00:42:23,880 --> 00:42:25,480 Speaker 2: just take that cash, you sign over the title, you've 959 00:42:25,520 --> 00:42:27,840 Speaker 2: got it there on hand. That's the route that I 960 00:42:27,840 --> 00:42:30,560 Speaker 2: would take, at least like from a simplicity standpoint and 961 00:42:30,600 --> 00:42:33,200 Speaker 2: even from like a marketing sort of standpoint, to not 962 00:42:33,440 --> 00:42:35,280 Speaker 2: have to be able to field all of these questions 963 00:42:35,320 --> 00:42:37,520 Speaker 2: where folks are like, hey, like what's the status of 964 00:42:37,560 --> 00:42:40,840 Speaker 2: the title of the car, and being like, well, you know, 965 00:42:41,120 --> 00:42:43,840 Speaker 2: you don't want to have to start with well just 966 00:42:43,880 --> 00:42:46,520 Speaker 2: to be like, oh, yeah, I've got it clean title. Yeah, Hey, 967 00:42:46,560 --> 00:42:48,359 Speaker 2: I can meet you essentially wherever you want to. That's 968 00:42:48,360 --> 00:42:51,000 Speaker 2: public versus actually we got to go to my credit union, 969 00:42:51,040 --> 00:42:52,359 Speaker 2: or we got to go to you got to meet 970 00:42:52,360 --> 00:42:55,040 Speaker 2: at my bank. And the minivan that we bought a 971 00:42:55,040 --> 00:42:58,640 Speaker 2: few years back. Matt the twenty twelve or twenty thirteen hotysy, 972 00:42:58,680 --> 00:43:00,960 Speaker 2: I forget what you're is I think a thirteen. 973 00:43:00,760 --> 00:43:03,160 Speaker 1: But yeah, I got a thirteen. I had to drive 974 00:43:03,200 --> 00:43:04,920 Speaker 1: over to the Ladies credit union. She still had a 975 00:43:04,960 --> 00:43:06,640 Speaker 1: loan on the thing, and it wasn't that big of 976 00:43:06,680 --> 00:43:08,600 Speaker 1: a deal and it was a great car, but it's 977 00:43:08,600 --> 00:43:10,120 Speaker 1: one of those things that just throw an extra wrench 978 00:43:10,120 --> 00:43:12,160 Speaker 1: in the whole situation. If you only have twelve hundred bucks, 979 00:43:12,400 --> 00:43:15,600 Speaker 1: pay that thing off, the make the sales process just 980 00:43:16,040 --> 00:43:18,040 Speaker 1: a whole lot easier, and you won't have to you 981 00:43:18,080 --> 00:43:19,879 Speaker 1: won't have to deal with the third party when you're 982 00:43:19,880 --> 00:43:20,359 Speaker 1: selling it. 983 00:43:20,480 --> 00:43:22,880 Speaker 2: Yeah, for someone who maybe wasn't so intent on getting 984 00:43:22,920 --> 00:43:24,400 Speaker 2: such a great deal like you were on the van, 985 00:43:24,520 --> 00:43:27,480 Speaker 2: they may have walked away. Like you're probably excluding a 986 00:43:27,480 --> 00:43:28,360 Speaker 2: certain number of buyers. 987 00:43:28,360 --> 00:43:31,640 Speaker 1: I think you probably expect that a little more with 988 00:43:31,800 --> 00:43:33,879 Speaker 1: newer cars, but especially if it's like ten years old. 989 00:43:34,120 --> 00:43:36,440 Speaker 1: Wait wait, you still have a loan on this, so 990 00:43:36,520 --> 00:43:38,480 Speaker 1: people might expect it with a twenty twenty. But still, 991 00:43:38,520 --> 00:43:41,520 Speaker 1: anything you can do, especially since it's a limited amount 992 00:43:41,520 --> 00:43:43,759 Speaker 1: of money, like pay it off, be done with it, 993 00:43:43,800 --> 00:43:46,160 Speaker 1: and just make the process easier for yourself. 994 00:43:46,280 --> 00:43:48,840 Speaker 2: Totally all right, man, Bourbon barrel draft to kill it? 995 00:43:48,880 --> 00:43:51,080 Speaker 2: What'd you think? Man? I enjoyed it. 996 00:43:51,000 --> 00:43:52,840 Speaker 1: It was a little bit thinner than I expected. But 997 00:43:52,880 --> 00:43:55,000 Speaker 1: then I remembered, wait a second, this is a scotchhale. 998 00:43:55,160 --> 00:43:58,040 Speaker 1: I was thinking stout. Yeah, it's exactly. I was like, 999 00:43:58,440 --> 00:44:00,920 Speaker 1: it's because it was bourbon barrely. I was assuming it 1000 00:44:00,960 --> 00:44:02,719 Speaker 1: was going to be this super duper thick stout, and 1001 00:44:02,760 --> 00:44:03,920 Speaker 1: then I was like, no, no, wait, this is just 1002 00:44:03,960 --> 00:44:06,640 Speaker 1: there's there's Scotch ail thrown into barrels, and that is 1003 00:44:06,640 --> 00:44:09,080 Speaker 1: a style I gravitate towards. I love a good Scotch 1004 00:44:09,120 --> 00:44:12,000 Speaker 1: jale because you get some of those darker, roastier flavors 1005 00:44:12,239 --> 00:44:15,800 Speaker 1: without some of the super duper thick vibes of a stout. 1006 00:44:16,120 --> 00:44:19,440 Speaker 1: And to me, this was a much better version of 1007 00:44:19,480 --> 00:44:22,280 Speaker 1: their drafty kill because it came with some of those boozy, 1008 00:44:22,280 --> 00:44:23,520 Speaker 1: oaky notes attached to it. 1009 00:44:23,640 --> 00:44:26,480 Speaker 2: So I liked it. It's so good man, like, is 1010 00:44:26,520 --> 00:44:28,680 Speaker 2: it possible for you to have like taste memory? Is 1011 00:44:28,680 --> 00:44:30,320 Speaker 2: that a thing? I think so? For me when I 1012 00:44:30,400 --> 00:44:32,600 Speaker 2: drink this beer, like it just brings back old like 1013 00:44:32,719 --> 00:44:35,919 Speaker 2: early craft beer day nostalgia. And I will say that 1014 00:44:36,520 --> 00:44:38,640 Speaker 2: early early. I'm not going to say all is responsible 1015 00:44:38,640 --> 00:44:40,680 Speaker 2: for this beer, but like Oz Friends with the Monday 1016 00:44:40,760 --> 00:44:44,360 Speaker 2: Night Brewery guys, and literally this was their first like 1017 00:44:44,480 --> 00:44:46,600 Speaker 2: awesome beer that they were making. They owe you everything 1018 00:44:46,600 --> 00:44:48,520 Speaker 2: to you, I think, so, man, I think that, but like, 1019 00:44:48,840 --> 00:44:51,279 Speaker 2: and this one specifically, I think this was their first 1020 00:44:51,320 --> 00:44:54,120 Speaker 2: beer that they won any awards. I think they won 1021 00:44:54,200 --> 00:44:55,719 Speaker 2: like a I don't know, silver medal or something, not 1022 00:44:55,800 --> 00:44:58,080 Speaker 2: the Great American Beer Fest way back in the day. 1023 00:44:58,360 --> 00:45:01,040 Speaker 2: But it just it's so good. It's not overly sweet, 1024 00:45:01,040 --> 00:45:04,839 Speaker 2: but it's got these multi oaky, woody notes. He got 1025 00:45:04,840 --> 00:45:07,080 Speaker 2: some like it reminds me of eating. Like imagine if 1026 00:45:07,080 --> 00:45:08,520 Speaker 2: there's like a candy bar that you loved as a 1027 00:45:08,600 --> 00:45:11,279 Speaker 2: kid and you haven't had it in forever, but then 1028 00:45:11,320 --> 00:45:12,560 Speaker 2: you go back to it and you take a bite 1029 00:45:12,600 --> 00:45:12,799 Speaker 2: of it and. 1030 00:45:12,800 --> 00:45:14,799 Speaker 1: You're like, oh, yeah, this is so good. 1031 00:45:15,000 --> 00:45:18,120 Speaker 2: Like there's something about that with this beer specifically, at 1032 00:45:18,200 --> 00:45:19,120 Speaker 2: least for me every. 1033 00:45:18,920 --> 00:45:20,600 Speaker 1: Time I have a three Musketeers, which you make fun 1034 00:45:20,640 --> 00:45:22,200 Speaker 1: of me for. So yeah, I'm not a big It's 1035 00:45:22,200 --> 00:45:24,160 Speaker 1: like the most dumb down version of a candy bar, 1036 00:45:24,200 --> 00:45:26,000 Speaker 1: I guess, but I still like it. You love you 1037 00:45:26,000 --> 00:45:28,799 Speaker 1: love that nugat I do, But yeah, big. Thanks to 1038 00:45:28,800 --> 00:45:31,640 Speaker 1: Todd for sharing this one with us and Matt Todd's 1039 00:45:31,640 --> 00:45:34,319 Speaker 1: gonna help me run my first marathon this year, so 1040 00:45:34,480 --> 00:45:36,680 Speaker 1: oh yeah, is he He's gonna give me some input. 1041 00:45:36,560 --> 00:45:38,399 Speaker 2: In I mentioned that he's like he's a trainer. He's 1042 00:45:38,400 --> 00:45:39,120 Speaker 2: going to train you up. 1043 00:45:39,160 --> 00:45:40,839 Speaker 1: Well, I don't know about that, but i'd probably pay 1044 00:45:40,880 --> 00:45:42,640 Speaker 1: for services, but maybe I'll give me a tip or too. 1045 00:45:42,680 --> 00:45:46,480 Speaker 1: So okay, thanks Todd, appreciate it, and don't take the 1046 00:45:46,560 --> 00:45:50,719 Speaker 1: cheap path, Joel. Maybe you want to be frugal ask 1047 00:45:50,760 --> 00:45:52,759 Speaker 1: for the discount, but don't don't. I'm just gonna go 1048 00:45:52,960 --> 00:45:54,480 Speaker 1: expect it for I'm just going to go Forest Gump 1049 00:45:54,480 --> 00:45:56,080 Speaker 1: and run a lot. That's my plan do it. But 1050 00:45:56,160 --> 00:45:58,080 Speaker 1: all right, that's gonna do it for this episode. For 1051 00:45:58,080 --> 00:46:00,160 Speaker 1: folks who want the show notes and links to some 1052 00:46:00,200 --> 00:46:01,960 Speaker 1: of the resources we mentioned, we'll put those up on 1053 00:46:02,239 --> 00:46:04,800 Speaker 1: the show notes at howtomoney dot com. 1054 00:46:04,840 --> 00:46:07,120 Speaker 2: You know it, buddy, So until next time, best Friends Out, 1055 00:46:07,280 --> 00:46:08,600 Speaker 2: Best Friends Out,