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

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Speaker 1: and today we're answering your listener questions. Welcome everyone to

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Speaker 1: episode eight oh five of the How to Money podcast.

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Speaker 1: This means we're old podcastters, you know what we It's

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Speaker 1: funny because we rolled over the old episode podcast O

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Speaker 1: Doomeiner rolled over eight hundred and it was an interview

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Speaker 1: episode is with holla, I guess a couple of weeks ago,

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Speaker 1: and we didn't even say anything about it because we

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Speaker 1: don't normally banter much on the interview or ever on

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Speaker 1: our interview episodes. But hey, eight hundred episodes, baby, that's

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Speaker 1: a big deal. It's a milestone. It's one of those milestone.

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Speaker 1: But no, so let's take a minute to maybe thank

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Speaker 1: all of our listeners out there for listening to the

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Speaker 1: show for that long. I oh, there are folks out there,

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Speaker 1: and because we hear from you, you email us, you

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Speaker 1: leave the reviews and you say, oh, I used to

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Speaker 1: listen back when it was the poorn up poor days. Yeah,

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Speaker 1: and that means you were listening around episode like twenty

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Speaker 1: or thirty. It also means you're glutton for punishment, which

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Speaker 1: is mind blowing. But obviously we wouldn't be here, we

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Speaker 1: wouldn't be making this podcast. I don't think if we

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Speaker 1: didn't have listeners, maybe we're gluttons for punishment and we

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Speaker 1: would continue to make the episodes. I love doing this

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Speaker 1: and so much even if nobody's listening to you at all.

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Speaker 1: I don't know if I would yell into the void

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Speaker 1: like that, but I just this is so much fun

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Speaker 1: to create. Embrace your old Man. No, this is an

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Speaker 1: ask how to money episode, and we've got some great

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Speaker 1: topics to get to today. A listener is asking about

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Speaker 1: what we think might be the most important personal finance metric,

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Speaker 1: Little Tea's there. Another listener is asking how she can

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Speaker 1: snag the lowest car loan interest rates, and another listener

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Speaker 1: is wondering what she should do because her financial cheese

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Speaker 1: it was moved. That's a reference to don't touch my cheese.

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Speaker 1: People like a nineties business look. Basically, it was very

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Speaker 1: popular book back then. Yeah, but uh yeah, when you're

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Speaker 1: when your goals shift, how do you respond to that.

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Speaker 1: We'll get to that and more during today's episode.

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Speaker 2: Yeah, real quick, I just want to mention in a

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Speaker 2: recent newsletter, By the way, if you're listening and you

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Speaker 2: haven't signed up for the newsletter, go do it. How

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Speaker 2: to money dot com slash newsletter comes out every Tuesday

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Speaker 2: chock full of advice. You'll get it tomorrow morning in

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Speaker 2: your inbox actually if you do it right now. So, yeah,

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Speaker 2: but we had put something about protecting yourself with password

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Speaker 2: manager sites right by using a password manager to because

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Speaker 2: there's a lot of people out there, Matt, who are

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Speaker 2: using the same password, have used the same exact password

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Speaker 2: on all of their logins, and with all the information

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Speaker 2: that's floating out there around.

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Speaker 1: Us password one, two three, Yeah, yeah, it can be

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Speaker 1: you don't want, No, you don't, and.

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Speaker 2: You want to shake up your passwords for different sites

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Speaker 2: because you'll, let's say some crook does figure out what

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Speaker 2: your password is. Well, instead of being able to just

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Speaker 2: get into that one account, now they get can get

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Speaker 2: into a bunch of your accounts. Well, that happened, right,

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Speaker 2: So I think we had mentioned last Pass and Bitwarden

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Speaker 2: as being two good options, but then listener grammarised down

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Speaker 2: and he's had actually Benmore's better because last Pass had

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Speaker 2: actually had a breach themselves.

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Speaker 1: They themselves had a data breach, which that's basically, hey,

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Speaker 1: this is your job, like your job is to protect

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Speaker 1: the data, is to protect the passwords, the pass keys,

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Speaker 1: and when it happens to stuff, when that happened, when

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Speaker 1: it happens to a credit bureau like that is supposed

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Speaker 1: to be their job. But I realize that they don't care.

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Speaker 1: But you should. You assume that the password.

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Speaker 2: That these companies actually do care, right, But last pass

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Speaker 2: apparently had had this flub which obviously impacted its users.

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Speaker 2: So I would say bit warden is probably the place

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Speaker 2: to turn. And the cool thing is bit worden has

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Speaker 2: that free tier. It's open source and because of that,

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Speaker 2: if you've been looking for a password manager, you can

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Speaker 2: get one free of charge, which.

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Speaker 1: Is pretty cool. Nice. Have you tried to? I checked

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Speaker 1: it out.

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Speaker 2: I haven't fully made the switch over there, but I'm

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Speaker 2: I don't know, I'm leaning towards.

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Speaker 1: I'm still stuck in my way as I've got my

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Speaker 1: hidden documents in password protected locations, and then the documents

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Speaker 1: themselves are also password protected, and of course I get

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Speaker 1: all weird with my passwords. And you know this because

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Speaker 1: any time you're like, hey, I need the Internet password

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Speaker 1: at your house. Yeah that or even something with work

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Speaker 1: where were like hey share me the share the whatever

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Speaker 1: password with me for whatever service, and I'm like, okay,

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Speaker 1: but brace yourself. And also I tend to like only

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Speaker 1: send you half of it and then I scrawl the

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Speaker 1: other the other half on a post a note that

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Speaker 1: make you destroy It's It's very James Bondy around here, Jewel. Yeah,

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Speaker 1: but let's introduce our beer real quick here. This is

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Speaker 1: an Alpsy beer by High Grain Brewing that was donated

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Speaker 1: to the show by Mike and Christy Joel. I'm looking

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Speaker 1: forward to enjoying this dunkle and we'll share our thoughts

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Speaker 1: at the end of the episode.

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Speaker 2: Sounds good, I will dunkle on you next time we

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Speaker 2: played basketball.

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Speaker 1: Well, let's probably can can you dunk?

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Speaker 2: My ups are not so great, but I am very tall,

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Speaker 2: so people assume I would be able to.

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Speaker 1: But I haven't tried, like in high school or college.

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Speaker 1: Could you dunk? Not really? No? Yeah, but now that

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Speaker 1: I'm forty, I probably can, right, Matt, you haven't focusing

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Speaker 1: on your health more. You've got a trampoline in the backyard.

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Speaker 1: All that's kind of amount to something I will say

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Speaker 1: I'll try soon. I'll try. I bet you jump more

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Speaker 1: on the trampoline. Now than you did when you're in

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Speaker 1: high school. Yeah, that's true. Boom m hmm. He is just

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Speaker 1: a number, Joel.

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Speaker 2: All right, I'll test it out soon. But let's get

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Speaker 2: on to the listener questions. And if you have a

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Speaker 2: question for us, we'd love to take it on the

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Speaker 2: next Ask How to Money episode. Just go to how

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Speaker 2: tomoney dot com slash ask for simple instructions for how

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Speaker 2: to submit your question. It's basically recording a voice memo

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Speaker 2: on your phone and emailing it to us is pretty chill.

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Speaker 2: Now let's get to the first question for this episode,

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Speaker 2: though this is kind of a nerdier question, maybe a

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Speaker 2: little inside baseball about savings rates.

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Speaker 3: Hey guys, this is John from Ohio.

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Speaker 4: A question that I've always had in regards to calculating

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Speaker 4: my personal savings rate. Is there a standard way to

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Speaker 4: handle employer contributions to my four to oh one, K

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Speaker 4: and HSA accounts.

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Speaker 3: Did they get ignored for the purpose of this calculation?

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Speaker 4: Does it get added to the numerator only add to

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Speaker 4: the numerator and de nominator. These contributions can really swing

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Speaker 4: my overall personal savings rate quite significantly depending on how

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Speaker 4: I treat them.

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Speaker 3: I love listening to your show. Thanks guys, Well.

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Speaker 1: John, we appreciate you listening to the show. But yeah, Joe,

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Speaker 1: let's go ahead and get nerdy with savings rates here.

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Speaker 1: I love these kinds of questions because they are they're.

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Speaker 2: The things people think about. They're like, okay, cool man.

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Speaker 2: Joel said that this is the kind of savings rate

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Speaker 2: I should have.

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Speaker 1: I don't I know what it is. Yeah, it seems

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Speaker 1: like it should be like it really simple, easy thing

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Speaker 1: to figure out, but as John found out, it's actually

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Speaker 1: maybe more complicated than it seems on its surface. There's

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Speaker 1: a few additional variables that you have to take into account.

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Speaker 1: But yeah, let's talk about how much you should be saving.

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Speaker 1: John and the I feel like the standard personal finance

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Speaker 1: advice out there has been to save ten percent of

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Speaker 1: your income, and we've always felt like that that actually

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Speaker 1: falls short and that it's not going to allow you

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Speaker 1: to make progress quickly enough. So because of that, we

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Speaker 1: raise the bar. We think that fifteen percent is a

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Speaker 1: better starting point, and then beyond that, we'd love to

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Speaker 1: see people increasing their savings rate over the years from there.

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Speaker 1: And granted, some folks listening they might just be getting

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Speaker 1: started and they're just trying to raise their savings rate

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Speaker 1: up from like the national average, which is something like

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Speaker 1: two something like that not going to be enough to

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Speaker 1: retire comfortably. But there's no shame in that. It's great

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Speaker 1: that you're getting started, but you know, the fifteen percent

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Speaker 1: that is our preferred starting line, sometimes it takes a

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Speaker 1: bit of time to get up to that what we

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Speaker 1: think is sort of the standard. Yea and John, hopefully

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Speaker 1: that's hopefully that that's around where you are without you

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Speaker 1: having to kind of play with the numbers and budget

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Speaker 1: a little bit.

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Speaker 2: There is that reality too that just even if the

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Speaker 2: goal is starting line of fifteen percent, a lot of

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Speaker 2: folks are going to start behind that. It's going to

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Speaker 2: take a while just to get up and worked up

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Speaker 2: to that number. But that's actually, like you said, Matt,

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Speaker 2: a far higher savings rate than what we have across

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Speaker 2: the country, something like three and a half percent. It's

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Speaker 2: been going down post pandemic. We had that brief spike

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Speaker 2: when a lot of money got thrust into people's accounts

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Speaker 2: the stimmy checks, and of course the savings rate has

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Speaker 2: dropped dramatically since then, and so I think it's no

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Speaker 2: wonder that people feel like they're living on the financial precipice.

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Speaker 2: When you're saving such a meager amount of your income,

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Speaker 2: it's going to feel like you don't have enough money.

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Speaker 2: And the CFP board actually recommended different savings rates based

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Speaker 2: on where you currently stand in regards to earnings, current

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Speaker 2: savings rate, and your age, and so, for instance, if

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Speaker 2: you're just starting to save in your forties, it's crucial

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Speaker 2: to basically have a baseline savings rate of twenty to

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Speaker 2: twenty five percent, And so I think they're spot on, though, right, Yeah,

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Speaker 2: it feels like it adds intu to injury. But the

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Speaker 2: truth is, and everybody knows this when you talk about

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Speaker 2: compounding returns, when we talk about starting late or getting

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Speaker 2: to the investing in savings game later on, the later

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Speaker 2: you start, the more you've got your work cut out

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Speaker 2: for you. And so it just goes to show the

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Speaker 2: power of beginning investing in your teens or twenties. And

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Speaker 2: then your savings rate, by the way, not only determines

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Speaker 2: how long it takes to reach full financial freedom, but

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Speaker 2: it also of course impacts how long it takes you

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Speaker 2: to reach the different stages of financial independence right that

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Speaker 2: we talk about because financial independence is not an all

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Speaker 2: or nothing proposition. A higher savings rate is, of course,

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Speaker 2: for instance, is going to mean you can take that

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Speaker 2: six months sabatical in your thirties, or could your job

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Speaker 2: for a less lucrative passion gig. It's an important personal

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Speaker 2: finance metric, and so it is kind of this nerdy

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Speaker 2: thing that we're going to dive into the details off,

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Speaker 2: but it also impacts your life. It impacts the choices

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Speaker 2: you're able to make. I think of it as much

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Speaker 2: more than just two kind of financial nerds batting back

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Speaker 2: and forth.

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Speaker 1: Specific here, it's like the implications are significant. Yeah, no,

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Speaker 1: So you know what this makes me think of It's

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Speaker 1: funny like before we hit record, we're talking about running

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Speaker 1: because again, like we're taking care of our bodies more

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Speaker 1: as we get into middle age, you and I we're

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Speaker 1: both gonna be running the Peachtree, the Peachtree red Rce right.

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Speaker 1: Really looking forward to that in Atlanta, staple that I've

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Speaker 1: never done before. So I'm pretty sure it's the world's

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Speaker 1: largest tin k. That's what they always I don't think

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Speaker 1: that's what they always say. I hope I'll get trampled,

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Speaker 1: but it's hard for me not to make parallels, I

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Speaker 1: guess whatever other examples from health, and it makes me

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Speaker 1: think of the more reading and research that I'm not

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Speaker 1: doing research. I'm just reading other people's research. And VO

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Speaker 1: two max it keeps coming up as this number that's

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Speaker 1: an incredible measure of cardiovascular health. And you can obsess

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Speaker 1: with other numbers, right, you can look at, oh, what's

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Speaker 1: my caloric intake, Oh what's my weight, that's kind of

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Speaker 1: like a terrible max heart rate. Yeah, Like there are

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Speaker 1: all the even steps, but ultimately all of those things

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Speaker 1: feed into your ability to remove oxygen from the air,

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Speaker 1: which is your VIEO to max basically. And so in

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Speaker 1: a similar way, I think folks can obsess over their

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Speaker 1: the number of subscriptions that they have, or their credit score,

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Speaker 1: or they could focus on boosting their income. They could

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Speaker 1: focus on what their net worth is, but all of

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Speaker 1: that sort of plays into the ability for you to

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Speaker 1: save more and invest for the future so that you

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Speaker 1: can actually retire on that money. And so in a

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Speaker 1: similar way, I feel like the saving trade is the

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Speaker 1: VO two max. I think, so it's a it's a

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Speaker 1: crucial number. And so that's why we took John's question. Then,

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Speaker 1: while we're spending so much time talking about it, but

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Speaker 1: he wants to specifically know whether or not he should

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Speaker 1: include that employer match when he's calculating his savings rate.

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Speaker 1: Sounds like he's got a generous employer, and you know

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Speaker 1: some of those four one K funds are getting matched,

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Speaker 1: but also is HSA contributions as well. It's huge, it's

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Speaker 1: doubly awesome. That's thousands and thousands of dollars there and benefit,

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Speaker 1: and that's obviously going to make a difference in his

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Speaker 1: ability to grow wealth. But do they get factored into

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Speaker 1: the calculations. This is a tough question, and I'm gonna

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Speaker 1: say I'm gonna play it safe and say that it depends.

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Speaker 1: Because if you are an incredibly frugal person and you

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Speaker 1: have sacrificed, you frontloaded the sacrifice, it likely can't hurt

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Speaker 1: to include the match in those calculations. You know, you're

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Speaker 1: looking out the numbers, you want to kind of see

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Speaker 1: the number go up. But if you're just getting started

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Speaker 1: out and maybe you're wanting to change the math so

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Speaker 1: that you can save less and spend more, I would

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Speaker 1: say that that's probably a bad move. And so it

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Speaker 1: kind of comes down to the heart what's the motivation

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Speaker 1: behind that? Yes, what is the motivation? What is that

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Speaker 1: the heart of why John is asking this question?

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Speaker 2: Are you trying to make your savings right look better

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Speaker 2: than it is or are you the kind of person

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Speaker 2: who's already done the hard work and you're like, come on,

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Speaker 2: I'm can I dial it back just to touch and

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Speaker 2: we I feel like we try to be generous on

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Speaker 2: this podcast, Matt, with people who have done the right

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Speaker 2: thing over significant period of time. Yeah, you can dial

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Speaker 2: back your savings right, like, there's no need to keep

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Speaker 2: pushing it forward. At some point, if you've kept your

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Speaker 2: wants and desires check and your savings rate has been

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Speaker 2: blistering for a lot of years, and you built up

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Speaker 2: a substantial nest egg, you can take the foot off

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Speaker 2: the gas at some point.

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Speaker 1: Basically coast fire. Yeah, no need to pretend that your

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Speaker 1: number is any lower than it actually is.

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Speaker 2: And that's a real problem for some people who have

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Speaker 2: been you know, consume a lot of personal finance information

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Speaker 2: and have worked their butts off for a long period

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Speaker 2: of time. But yeah, I think you're right. The motivation

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Speaker 2: matters on how you're going to calculate that savings rate.

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Speaker 2: And let's say your employer makes a five percent contribution.

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Speaker 2: You're like, great, now this means I can only I

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Speaker 2: only have to sock away nine or ten percent of

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Speaker 2: my money, and then I'm right there that base threshold

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Speaker 2: Matt and Jo'll talk about, and you're just trying to

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Speaker 2: hit the bare minimum. Well, I think then maybe you're

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Speaker 2: tricking yourself, and there are ways that you could You

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Speaker 2: should probably alter your thinking so that you can actually

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Speaker 2: push yourself to go a little bit harder, right exactly.

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Speaker 2: And so I mean that employer match can be amazing,

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Speaker 2: but I would I think typically we would say, no,

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Speaker 2: do not factor that into your savings rate, because yeah,

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Speaker 2: the average matches in the three percent area. Someone are

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Speaker 2: even more generous. But while you certainly can, I guess

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Speaker 2: i'd it's better to leave it out of the calculations

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Speaker 2: because that.

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Speaker 1: Match, it can go away in an instant. That's true,

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Speaker 1: And so we saw that happen during the pandemic. Matt.

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Speaker 2: Like, when a company ends up in a tough financial situation,

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Speaker 2: the employee match is often the first perk to get

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Speaker 2: the boot. And let's say you change jobs and now

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Speaker 2: your new employer doesn't have a match or you opt

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Speaker 2: to go work for yourself. All of those things could

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Speaker 2: therefore take that away, and you don't have the muscle

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Speaker 2: that's been developed enough to have that higher savings rate

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Speaker 2: apart from the match, and that's not necessarily a good thing.

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Speaker 1: So, yeah, especially if you're using it to justify additional spending.

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Speaker 1: And it's very easy to get used to an inflated lifestyle,

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Speaker 1: like once you start spending that money on certain things

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Speaker 1: in your life. It's yeah, it's tough to put the

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Speaker 1: cat back in the bag. We got chastises about using

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Speaker 1: cap metaphor, it's tough to put the tooth tape paste

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Speaker 1: back in the two. And so the ability to justify

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Speaker 1: excessive spending, that's also a good reason to not include

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Speaker 1: those employer contributions.

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Speaker 2: Yeah, because I've worked for a company just doing some

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Speaker 2: sidework Matt and all the employees in an instant man,

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Speaker 2: their formal K match was taken away. This was last year,

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Speaker 2: and I just remember hearing that there was a lot

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Speaker 2: of consternation concerned from a lot of these employees. It

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Speaker 2: does suck, And of course if you're calculating that into

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Speaker 2: your savings, right, Boom is down three percent in an instant,

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Speaker 2: are you gonna be able to come up with that

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Speaker 2: additional three percent to get your savings right back up there?

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Speaker 2: And plus I don't know, I kind of like airing

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Speaker 2: on the side of conservatism, just kind of knowing that, well,

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Speaker 2: I'm saving fifteen my employer's offering three. I guess in

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Speaker 2: some ways I can feel even better about myself because

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Speaker 2: I got an eighteen percent savings rightly.

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Speaker 1: Yeah. Like, So another reason too that I want you

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Speaker 1: to avoid taking it into account, John, is because I

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Speaker 1: want that savings rate to be a reflection of what

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Speaker 1: it is that you are doing, right. I want it

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Speaker 1: to be a reflection of the amount of money that

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Speaker 1: you have socked aside the discipline that you've enacted upon yourself. Right, Like,

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Speaker 1: it's like a score of your ability to deny some

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Speaker 1: of the temptations that you're facing to spend your money.

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Speaker 1: And so in that way to love future you, Yeah,

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Speaker 1: in that way, as you see that savings rate tick up,

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Speaker 1: there is something in those numbers, and I want it

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Speaker 1: to be a reflection of just all the hard work

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Speaker 1: that you're putting in. Other of that being said, and

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Speaker 1: know that to think about it, your employer is not

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Speaker 1: likely to give you a match unless you're giving or

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Speaker 1: unless you are contributing at all to your four to

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Speaker 1: one k. And so it is I guess obviously somewhat

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Speaker 1: of a reflection of the fact that you are doing

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Speaker 1: some good work, John. So if you want to include it,

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Speaker 1: I'm not going to beat you up for it, but

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Speaker 1: I think for most folks out there, it's probably best

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Speaker 1: to try to avoid doing that. John could kick your

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Speaker 1: butt anyway.

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Speaker 4: Ye.

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Speaker 2: Yeah, Well, and if you are going to include it,

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Speaker 2: include it in the numerator and the denominator like you asked, John,

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Speaker 2: because it's essentially payment in the form of savings. So

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Speaker 2: I would just included on both fronts. And this is

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Speaker 2: something that can get wonky, Matt, I think as we've

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Speaker 2: kind of waded into already in the answer to this,

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Speaker 2: and depending I think on exactly how you calculate your

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Speaker 2: savings rate. It's kind of like how you factor in

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Speaker 2: pre tax first post tax contributions. Your savings rate percentage

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Speaker 2: can vary significantly, so depending on how you're running the numbers.

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Speaker 2: This is kind of like when people say that you

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Speaker 2: can make statistics say anything, you can make statistics, lie.

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Speaker 2: I think the same thing is true, Right, you got

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Speaker 2: to beef up your savings right by the way you're

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Speaker 2: caculating it, or you can make it look a little

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Speaker 2: more meager. So just make sure you're not taking the

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Speaker 2: most liberal approach to make it look like you're doing

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Speaker 2: better than you actually are.

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Speaker 1: And totally by the.

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Speaker 2: Way, I think it's important to mention too that savings rates.

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Speaker 2: When we say that, it factors in money that is

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Speaker 2: flowing into savings and into investments, and you might be

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Speaker 2: doing a little bit of both at the same time. Right,

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Speaker 2: you might be socking more money into savings for medium

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Speaker 2: termed goals and also socking something a big portion of that.

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Speaker 2: Hopefully after you've got that emergency fund up and running,

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Speaker 2: you're funneling most of that money into investments and not

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Speaker 2: just savings. But I think once you've reached a sweet

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Speaker 2: spot of savings, all of your quote unquote savings will

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Speaker 2: be funneled into investment accounts.

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Speaker 1: Right, That's kind of the goal. But I think the

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Speaker 1: most important thing is just to be consistent. So whatever

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Speaker 1: it is that John decides that he's going to go with,

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Speaker 1: just don't change it. Right, This isn't necessarily something that

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Speaker 1: you need to obsess over, but just choose a metric

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Speaker 1: that you're happy with and then consistency, stick with it,

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Speaker 1: don't change it, and then that way you've got a

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Speaker 1: nice baseline essentially, right, But he.

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Speaker 2: Said, don't change it except for maybe change it in

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Speaker 2: the upper trajectory slowly over time. So for instance, we

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Speaker 2: talked about increasing that four one k contribution of percent

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Speaker 2: every year something like that.

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Speaker 1: They don't change the formula. So like, once you've identified

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Speaker 1: what tack that you're gonna take, John, just don't change that.

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Speaker 2: Yeah, but yes, if you can boost you're saving because

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Speaker 2: again Boot, you're investing. Fifteen percent is the starting line, right, Like,

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Speaker 2: we want people to over time increase that because the

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Speaker 2: more you're able to set aside over the years, the

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Speaker 2: more options you have for yourself earlier on in your life,

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Speaker 2: like that sabbatical or job change. Those are big life

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Speaker 2: decisions that are hard to do if you don't have

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Speaker 2: a significant savings.

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Speaker 1: Right. That's right, man, But we've got more to get to.

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Speaker 1: We're gonna hear from a listener who seems like she's

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Speaker 1: set for retirement, but at the same time she doesn't

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Speaker 1: have any money set aside, and her actual retirement accounts

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Speaker 1: how well, we'll get to that more right after this.

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Speaker 1: All right, we'll back to the break.

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Speaker 2: We've got more money questions to get to on this episode.

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Speaker 2: Next question from a listener whose credit score has improved

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Speaker 2: and she's trying to take full advantage of it.

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Speaker 5: Hey, guys, Alexandra from Pittsburgh here have a quick question

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Speaker 5: to ask you. I bought my car in twenty twenty two,

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Speaker 5: and I use that to rebuild my credit. Basically, I

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Speaker 5: refinanced it a year later and I lowered my payment

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Speaker 5: and I got a slightly better interest rate. However, my

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Speaker 5: credit's gone better since and I'm wondering, is there a

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Speaker 5: way to negotiate interest rates after you refinanced with the

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Speaker 5: bank or you always have to refinance to lower the

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Speaker 5: interest rate? And how does this work with a vehicle

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Speaker 5: that's depreciating in value? This is a twenty eighteen Chevy Cruise.

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Speaker 5: Thank you, have a good day, by bye.

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Speaker 1: Great question, Alexandra, and I'll point out you are one

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Speaker 1: of the rare folks who could actually benefit from refinancing

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Speaker 1: right now, largely because it sounds like your credit has

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Speaker 1: improved so much. Rates have actually been on the rise,

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Speaker 1: which means refinancing makes sense for far fewer folks. So

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Speaker 1: I think what that might mean is that lenders are

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Speaker 1: going to be happy to hear from you because their

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Speaker 1: refinancing business has largely dried up. But for you, because

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Speaker 1: of your financial position, because of the fact that you've

434
00:19:12,440 --> 00:19:15,600
Speaker 1: increased your score, you're in a different boat basically. And

435
00:19:16,119 --> 00:19:17,920
Speaker 1: you said that you were able to use your car

436
00:19:18,000 --> 00:19:20,000
Speaker 1: loan by the way to kind of rebuild your your

437
00:19:20,040 --> 00:19:22,960
Speaker 1: credit score, and that's in large part because the credit

438
00:19:22,960 --> 00:19:25,399
Speaker 1: bureaus they take your credit mix into account, and so

439
00:19:25,480 --> 00:19:28,399
Speaker 1: I think there's a chance that you introduced an installment

440
00:19:28,480 --> 00:19:31,960
Speaker 1: loan when maybe before all you had were revolving lines

441
00:19:31,960 --> 00:19:33,840
Speaker 1: of credit that were available to you. So now you've

442
00:19:33,880 --> 00:19:36,840
Speaker 1: got this this nice mix. Like they see your credit

443
00:19:36,920 --> 00:19:38,720
Speaker 1: report and they're like, oh man, this is a well

444
00:19:38,800 --> 00:19:42,200
Speaker 1: rounded individual right here. It's healthy. It's healthy. It's like

445
00:19:42,240 --> 00:19:45,320
Speaker 1: a college who's looking to hand out scholarships and they

446
00:19:45,320 --> 00:19:48,520
Speaker 1: see like a baller athlete who also took tons of

447
00:19:48,560 --> 00:19:50,679
Speaker 1: AP classes and has like a four point zero and

448
00:19:50,720 --> 00:19:52,720
Speaker 1: is it like the valuatorian other classes. It's like, oh man,

449
00:19:52,720 --> 00:19:55,560
Speaker 1: they're they're killing it on both fronts. Yeah, yeah, that's

450
00:19:55,560 --> 00:19:57,800
Speaker 1: what finally Dranda is doing with her with the credit score.

451
00:19:57,840 --> 00:19:59,439
Speaker 2: And can you imagine, by the way, being a mortgage

452
00:19:59,520 --> 00:20:01,399
Speaker 2: lender right now, I got to imagine the business has

453
00:20:01,440 --> 00:20:03,639
Speaker 2: dried up on so many ways, so there's fewer homes

454
00:20:03,680 --> 00:20:07,080
Speaker 2: being sold. Nobody wants to refinance right now, so it's

455
00:20:07,160 --> 00:20:09,040
Speaker 2: just a toughness being and so you're right, I think

456
00:20:09,160 --> 00:20:13,200
Speaker 2: it probably similar. Note on the car reefinancing front. They're

457
00:20:13,240 --> 00:20:15,600
Speaker 2: probably here in crickets most days, so when Alexander calls,

458
00:20:15,720 --> 00:20:17,200
Speaker 2: they will be thrilled to take their call.

459
00:20:17,920 --> 00:20:19,399
Speaker 1: And so yeah, you ask if you can we take

460
00:20:19,400 --> 00:20:21,560
Speaker 1: you out to lunch right exactly what you got going

461
00:20:21,600 --> 00:20:23,240
Speaker 1: on right now, right like literally right now.

462
00:20:24,280 --> 00:20:26,400
Speaker 2: So I think if you could. She asked Matt about

463
00:20:26,440 --> 00:20:28,720
Speaker 2: negotiating the rate that she has with the current lender.

464
00:20:29,200 --> 00:20:32,399
Speaker 2: The truth is probably not right. You're often able to

465
00:20:32,440 --> 00:20:35,320
Speaker 2: negotiate and interestrate if you're buying a car from a dealership.

466
00:20:35,680 --> 00:20:36,960
Speaker 2: That's one of the things they might be willing to

467
00:20:36,960 --> 00:20:38,560
Speaker 2: budge on in order to make the sale growth through.

468
00:20:38,560 --> 00:20:41,040
Speaker 2: If you like, say, listen, you're saying seven percent, I'm

469
00:20:41,080 --> 00:20:42,320
Speaker 2: not going to buy unless you can get me down

470
00:20:42,320 --> 00:20:44,840
Speaker 2: to five percent, well, they might try to meet somewhere

471
00:20:44,880 --> 00:20:46,720
Speaker 2: in the middle. But once you've got a loan in place,

472
00:20:46,960 --> 00:20:48,600
Speaker 2: you aren't likely going to be able to go back

473
00:20:48,640 --> 00:20:51,600
Speaker 2: and ask the current lender to lower the interest rate

474
00:20:51,640 --> 00:20:54,439
Speaker 2: moving forward. So well, I might, if I were you,

475
00:20:54,480 --> 00:20:56,400
Speaker 2: call my current lender to see if they have any

476
00:20:56,440 --> 00:20:58,760
Speaker 2: incentives for you to do a refinance with them, Like, hey,

477
00:20:59,160 --> 00:21:01,680
Speaker 2: current customer, disc out my credit's better, Can you give

478
00:21:01,680 --> 00:21:05,439
Speaker 2: me a better rate? Your best bet is almost inevitably

479
00:21:05,560 --> 00:21:08,280
Speaker 2: just to do another refinance with a different lender. It's

480
00:21:08,280 --> 00:21:10,480
Speaker 2: not necessarily to go back and try to renegotiate those

481
00:21:10,520 --> 00:21:12,480
Speaker 2: terms that you've currently got in place, right.

482
00:21:12,560 --> 00:21:14,840
Speaker 1: Yeah. The good news though, is that when you are

483
00:21:14,920 --> 00:21:19,600
Speaker 1: refinancing a car loan, there aren't typically massive additional fees attached,

484
00:21:20,040 --> 00:21:22,600
Speaker 1: which is unlike when you refinance a mortgage. But there

485
00:21:22,640 --> 00:21:25,320
Speaker 1: are often some fees involved, and that's going to just

486
00:21:25,359 --> 00:21:28,639
Speaker 1: depend on the specific lender that you're with. So there

487
00:21:28,720 --> 00:21:31,879
Speaker 1: might be, let's say, a prepayment fee with your current lender,

488
00:21:32,440 --> 00:21:34,920
Speaker 1: or there might be origination fees with other lenders as well.

489
00:21:34,960 --> 00:21:36,600
Speaker 1: It's just something to keep an eye out for the

490
00:21:36,600 --> 00:21:40,400
Speaker 1: tune of hundreds of dollars potentially four dollars. Yeah, and

491
00:21:40,480 --> 00:21:42,399
Speaker 1: so I would say, if there's a pre payment fee

492
00:21:42,560 --> 00:21:45,840
Speaker 1: that could be a reason to completely avoid refinancing. That's

493
00:21:45,840 --> 00:21:48,200
Speaker 1: when I would yeah, let's get back in touch with

494
00:21:48,280 --> 00:21:50,199
Speaker 1: your your current lender and depending on how much it

495
00:21:50,240 --> 00:21:52,560
Speaker 1: is right exactly, but you know, if that's something that

496
00:21:52,600 --> 00:21:54,680
Speaker 1: you can avoid. If you can't avoid all of those fees,

497
00:21:54,680 --> 00:21:56,600
Speaker 1: I would say, there's you know, no harm, no foul

498
00:21:56,640 --> 00:21:59,840
Speaker 1: to refinance your car loan when a better deal is available.

499
00:22:00,000 --> 00:22:01,520
Speaker 1: I think everyone is out there looking to try to

500
00:22:01,520 --> 00:22:05,040
Speaker 1: pay less interest over time. Start shopping around, see what

501
00:22:05,160 --> 00:22:06,959
Speaker 1: you can find, see what you can reduce your your

502
00:22:07,000 --> 00:22:08,840
Speaker 1: rate to. And I would say the best place to

503
00:22:08,960 --> 00:22:12,600
Speaker 1: look at might be local credit unions. Check out Capital one.

504
00:22:12,960 --> 00:22:16,400
Speaker 1: There's also the site called my Auto loan dot Com.

505
00:22:16,760 --> 00:22:20,000
Speaker 1: I'd actually probably start with them my Auto Loan since

506
00:22:20,040 --> 00:22:22,440
Speaker 1: they do everything online, they make it pretty easy. That's

507
00:22:22,440 --> 00:22:24,200
Speaker 1: one of the biggest barriers. One of the biggest hurdles

508
00:22:24,240 --> 00:22:26,760
Speaker 1: to get past is just the hassle factor. But then

509
00:22:26,800 --> 00:22:28,800
Speaker 1: on top of that, they don't charge any origination fees,

510
00:22:28,960 --> 00:22:31,040
Speaker 1: so that's huge. So you should be able to look

511
00:22:31,080 --> 00:22:34,000
Speaker 1: up current rates. That's something you could even do tonight

512
00:22:34,800 --> 00:22:37,159
Speaker 1: after listening to this episode. Yeah, and I think you

513
00:22:37,240 --> 00:22:40,000
Speaker 1: could also look up your current rates with the local

514
00:22:40,040 --> 00:22:42,280
Speaker 1: credit unions that you've heard of that are in your

515
00:22:42,320 --> 00:22:42,879
Speaker 1: area as well.

516
00:22:42,920 --> 00:22:44,960
Speaker 2: If you don't already have a relationship with a local

517
00:22:45,080 --> 00:22:47,320
Speaker 2: credit union, che check check out two or three in

518
00:22:47,359 --> 00:22:49,240
Speaker 2: the metro area where you live. Go on their site.

519
00:22:49,280 --> 00:22:51,720
Speaker 2: Typically they've got a little spot where you can click rates,

520
00:22:51,960 --> 00:22:53,919
Speaker 2: and then you check out mortgage rates and car loan

521
00:22:54,040 --> 00:22:57,040
Speaker 2: rates and helock rates and so flip through those sites

522
00:22:57,040 --> 00:22:59,159
Speaker 2: and kind of see and oftentimes, Matt they'll break it

523
00:22:59,200 --> 00:23:02,040
Speaker 2: down by the aide to the vehicle, because typically the

524
00:23:02,200 --> 00:23:04,359
Speaker 2: older the vehicle, the higher interest rate that it's going

525
00:23:04,440 --> 00:23:07,040
Speaker 2: to come with. Sower the model you're buying, the better

526
00:23:07,080 --> 00:23:09,720
Speaker 2: interest rate you're going to get. But because this is

527
00:23:09,720 --> 00:23:13,240
Speaker 2: a twenty eighteen model that Alexander has, it's probably going

528
00:23:13,320 --> 00:23:15,200
Speaker 2: to come with a slightly higher interest rate. But still

529
00:23:15,240 --> 00:23:17,200
Speaker 2: because of her better credit, she might be able to

530
00:23:17,240 --> 00:23:19,480
Speaker 2: reduce that rate. She didn't actually say what her current

531
00:23:19,560 --> 00:23:23,240
Speaker 2: rate is. I'd be curious to know, but who depending

532
00:23:23,240 --> 00:23:25,600
Speaker 2: on what it is, there could be a substantial discount

533
00:23:25,880 --> 00:23:28,480
Speaker 2: even though rates have gone up, right, And so I

534
00:23:28,520 --> 00:23:30,280
Speaker 2: would say, the nice thing, like you mentioned, is you

535
00:23:30,280 --> 00:23:32,560
Speaker 2: don't have to leave the comfort of your home and Alexander.

536
00:23:32,560 --> 00:23:34,760
Speaker 2: She mentioned the last time she refinanced that she was

537
00:23:34,800 --> 00:23:37,800
Speaker 2: able to lower her payment by the way, That's cool,

538
00:23:38,320 --> 00:23:41,560
Speaker 2: but it's also what I would prioritize, right, Like folks

539
00:23:41,560 --> 00:23:45,840
Speaker 2: who refinance regularly, they might find themselves lengthening the payback period,

540
00:23:46,000 --> 00:23:48,280
Speaker 2: which means they're underwater in the car for longer. So

541
00:23:48,480 --> 00:23:52,240
Speaker 2: the goal is not necessarily to get the lowest monthly payment, right.

542
00:23:52,240 --> 00:23:53,720
Speaker 2: You don't want to put yourself in the position of

543
00:23:53,720 --> 00:23:55,720
Speaker 2: being underwater in the car for a long period of time.

544
00:23:56,000 --> 00:23:58,000
Speaker 2: I would say that getting the lowest rate is the

545
00:23:58,000 --> 00:24:00,600
Speaker 2: most important thing, even if it means take a shorter

546
00:24:01,160 --> 00:24:05,320
Speaker 2: term in increasing your monthly payment amount, because ultimately our goal,

547
00:24:05,359 --> 00:24:06,800
Speaker 2: what we want for you is for you to be

548
00:24:06,840 --> 00:24:09,840
Speaker 2: out of debt and paying the least amount overall for

549
00:24:10,119 --> 00:24:12,119
Speaker 2: your car. Right, So that is, of course, if you

550
00:24:12,119 --> 00:24:16,080
Speaker 2: can financially handle those increased payments exactly. Really, that's the

551
00:24:16,119 --> 00:24:18,399
Speaker 2: goal here. It's not just to lengthen the loan as

552
00:24:18,440 --> 00:24:20,280
Speaker 2: long as possible. We hate long car loans.

553
00:24:20,400 --> 00:24:23,360
Speaker 1: I'll stretch those payments out. Yeah, the lower rate certainly

554
00:24:23,400 --> 00:24:25,800
Speaker 1: trumps the lower payment, and the goal is just to

555
00:24:25,800 --> 00:24:28,240
Speaker 1: become car debt free as soon as possible, and hopefully

556
00:24:28,280 --> 00:24:31,480
Speaker 1: to never have a car car payment again in your life.

557
00:24:31,800 --> 00:24:34,760
Speaker 1: So we're pumped that you're paying more attention to your finances,

558
00:24:34,800 --> 00:24:37,159
Speaker 1: your credit score. You're able to see that grow and

559
00:24:37,240 --> 00:24:39,560
Speaker 1: this is of course going to continue to give you

560
00:24:39,640 --> 00:24:43,080
Speaker 1: access to better terms when you are borrowing, perhaps if

561
00:24:43,119 --> 00:24:45,520
Speaker 1: you are looking at purchasing a home in the near future.

562
00:24:45,800 --> 00:24:49,320
Speaker 1: But simultaneously, don't go overboard with it, because just because

563
00:24:49,359 --> 00:24:52,120
Speaker 1: you can now snag a lower rate with a loan

564
00:24:52,359 --> 00:24:54,199
Speaker 1: new loan products that are now available to you, that

565
00:24:54,200 --> 00:24:57,440
Speaker 1: doesn't mean that you want to put more emphasis on borrowing.

566
00:24:57,720 --> 00:25:00,400
Speaker 1: Most debt is still working against your old time goal

567
00:25:00,440 --> 00:25:03,240
Speaker 1: of a sense of financial freedom where you are the

568
00:25:03,280 --> 00:25:05,520
Speaker 1: one earning interest because you've got lots of savings in

569
00:25:05,560 --> 00:25:08,080
Speaker 1: the bank as opposed to you making the interest payments

570
00:25:08,160 --> 00:25:09,000
Speaker 1: to the banks.

571
00:25:09,080 --> 00:25:10,560
Speaker 2: Yeah, I think you and I, Matt, we have a

572
00:25:10,560 --> 00:25:12,960
Speaker 2: more nuanced take on debt. We're not debt haters all

573
00:25:13,000 --> 00:25:15,439
Speaker 2: the way, but car loan debt is certainly one of

574
00:25:15,440 --> 00:25:16,680
Speaker 2: those that we frown upon.

575
00:25:16,720 --> 00:25:17,320
Speaker 1: Don't like it.

576
00:25:17,160 --> 00:25:19,520
Speaker 2: It's not like a never okay sort of thing, but

577
00:25:19,560 --> 00:25:22,760
Speaker 2: it is a mostly let's avoid this thing type of vehicle,

578
00:25:22,960 --> 00:25:25,960
Speaker 2: and let's hope Alexander can improve this debt, but the

579
00:25:26,000 --> 00:25:28,399
Speaker 2: goal ultimately is to eradicate it, like you said. So

580
00:25:29,040 --> 00:25:31,560
Speaker 2: let's get to our next question. This one's all about

581
00:25:31,560 --> 00:25:35,000
Speaker 2: how future guaranteed streams of income impact how you should

582
00:25:35,000 --> 00:25:36,080
Speaker 2: be saving for retirement.

583
00:25:36,160 --> 00:25:36,360
Speaker 4: Now.

584
00:25:36,600 --> 00:25:39,560
Speaker 6: Hey there, Matt and Jewel, this is Ashley in Sacramento.

585
00:25:40,119 --> 00:25:42,359
Speaker 6: I really wish you guys were around when I was

586
00:25:42,359 --> 00:25:45,560
Speaker 6: in my twenties. Alas I am now sixty one and

587
00:25:45,600 --> 00:25:48,879
Speaker 6: the only real retirement savings that I have is my

588
00:25:49,080 --> 00:25:52,679
Speaker 6: public service pension, which I'll probably start dipping into in

589
00:25:52,720 --> 00:25:56,800
Speaker 6: about seven years, so I'll be taking home a really

590
00:25:56,880 --> 00:26:00,720
Speaker 6: good portion of the salary that I'm currently earning. So

591
00:26:00,760 --> 00:26:03,000
Speaker 6: I do have two questions for you. The first one

592
00:26:03,200 --> 00:26:07,920
Speaker 6: is how does a pension affect the money gears? And

593
00:26:08,000 --> 00:26:11,600
Speaker 6: the second question is is it really worth opening a

594
00:26:11,640 --> 00:26:15,639
Speaker 6: retirement account this late stage in the game, and if so,

595
00:26:16,480 --> 00:26:20,320
Speaker 6: what type of account should I be considering? Thank you

596
00:26:20,440 --> 00:26:21,920
Speaker 6: so much, I really love this show.

597
00:26:22,040 --> 00:26:24,399
Speaker 3: Keep up the good work, oh, Matt.

598
00:26:24,640 --> 00:26:27,159
Speaker 2: A pension one an incredible thing to have. Congress to

599
00:26:27,160 --> 00:26:32,560
Speaker 2: Ashley for having that in her retirement repertoire. The fact

600
00:26:32,560 --> 00:26:34,560
Speaker 2: that it's going to provide pretty darn close to your

601
00:26:34,600 --> 00:26:35,440
Speaker 2: current level of pay.

602
00:26:35,480 --> 00:26:36,520
Speaker 1: That's a massive win.

603
00:26:36,920 --> 00:26:39,240
Speaker 2: And most of our younger listeners, Matt, they're probably scratching

604
00:26:39,280 --> 00:26:41,080
Speaker 2: their heads right now, they're like, what.

605
00:26:41,000 --> 00:26:41,679
Speaker 1: Is that, Audie?

606
00:26:41,680 --> 00:26:41,960
Speaker 4: What? Ty?

607
00:26:42,160 --> 00:26:45,600
Speaker 2: Yeah, what you're talking about? Well, I actually have a

608
00:26:45,720 --> 00:26:48,040
Speaker 2: really small pension from when I worked in radio.

609
00:26:47,800 --> 00:26:50,680
Speaker 1: For a while. But you know, they're bragging, Well, pay.

610
00:26:50,560 --> 00:26:52,679
Speaker 2: Was incredibly low, so it's not huge. And also I

611
00:26:52,720 --> 00:26:55,200
Speaker 2: wasn't there for like you typically that reminder, I said,

612
00:26:55,200 --> 00:26:58,000
Speaker 2: incredibly small. Ye yeah, yeah, because like to have a

613
00:26:58,000 --> 00:27:00,719
Speaker 2: substantial pension typically that means being at the same for decades,

614
00:27:00,760 --> 00:27:03,400
Speaker 2: and a pension can also kind of work as golden handcuffs,

615
00:27:03,440 --> 00:27:05,600
Speaker 2: and so in some ways, not having a pension means

616
00:27:05,640 --> 00:27:07,040
Speaker 2: you can be a little more mobile in the workforce,

617
00:27:07,119 --> 00:27:09,600
Speaker 2: potentially increase your income a little more because you're more

618
00:27:09,760 --> 00:27:11,960
Speaker 2: likely to move on and not just stay put because

619
00:27:11,960 --> 00:27:12,640
Speaker 2: the pension's coming.

620
00:27:12,720 --> 00:27:15,480
Speaker 1: But maybe a bit more mobility in the workforce when

621
00:27:15,520 --> 00:27:17,920
Speaker 1: there aren't pensions evolved when we get to take care

622
00:27:17,920 --> 00:27:19,679
Speaker 1: of our own futures ourselves, that's right.

623
00:27:19,720 --> 00:27:21,719
Speaker 2: So a few years before I left that job, actually

624
00:27:21,760 --> 00:27:24,560
Speaker 2: they stopped increasing the pension for years work, so it

625
00:27:24,600 --> 00:27:26,280
Speaker 2: made it a much easier decision for me to leave.

626
00:27:26,720 --> 00:27:29,000
Speaker 1: So I was like, cool, peace out, I'm out of here.

627
00:27:29,080 --> 00:27:29,440
Speaker 1: That's right.

628
00:27:29,600 --> 00:27:32,320
Speaker 2: So mine is obviously chump change compared to Ashley's is

629
00:27:32,359 --> 00:27:35,920
Speaker 2: better than nothing, but like generous pensions like hers are

630
00:27:35,960 --> 00:27:36,800
Speaker 2: obviously much.

631
00:27:36,680 --> 00:27:39,000
Speaker 1: Harder to come by. That's right. Okay, So how should

632
00:27:39,040 --> 00:27:42,240
Speaker 1: Ashley consider her pension? How should that impact how she

633
00:27:42,359 --> 00:27:45,399
Speaker 1: saves and how she invests? And we'll take a step

634
00:27:45,440 --> 00:27:47,720
Speaker 1: back here and let's look at retirement because it was

635
00:27:47,840 --> 00:27:50,720
Speaker 1: traditionally referred to as a three legged stool. It was

636
00:27:50,760 --> 00:27:54,600
Speaker 1: all about the pension, yes, but also social security and

637
00:27:54,600 --> 00:27:57,240
Speaker 1: then your personal savings. And for that stool to not

638
00:27:57,320 --> 00:28:00,720
Speaker 1: be wobbly and rickety, you needed the healthy dose of

639
00:28:00,760 --> 00:28:03,719
Speaker 1: all three of those things. And so for folks who

640
00:28:03,800 --> 00:28:06,200
Speaker 1: don't have a pension, what that means, though, is even

641
00:28:06,240 --> 00:28:09,120
Speaker 1: more dedication is going to be needed on the personal

642
00:28:09,280 --> 00:28:12,080
Speaker 1: savings leg. And so for a lot of folks out

643
00:28:12,119 --> 00:28:14,199
Speaker 1: there who are listening to this, you do not have

644
00:28:14,240 --> 00:28:16,240
Speaker 1: a pension, for the most part, it's going to fall

645
00:28:16,280 --> 00:28:18,439
Speaker 1: on you. It's you, and of course you're gonna have

646
00:28:18,480 --> 00:28:21,800
Speaker 1: some social security. But if Ashley you're the one asking

647
00:28:21,880 --> 00:28:24,120
Speaker 1: the question here. If you do have a pension, this

648
00:28:24,160 --> 00:28:26,880
Speaker 1: does mean that you probably don't need to go quite

649
00:28:26,960 --> 00:28:29,159
Speaker 1: as hard her. You know, we were talking about the

650
00:28:29,200 --> 00:28:31,840
Speaker 1: savings rate earlier. Her savings rate doesn't need to be

651
00:28:31,920 --> 00:28:34,400
Speaker 1: quite as robust. She doesn't necessarily need to get after

652
00:28:34,480 --> 00:28:37,800
Speaker 1: it like John is probably doing right. Like where he's

653
00:28:37,880 --> 00:28:41,280
Speaker 1: kind of crunching the numbers, he's squeaking the formula, trying

654
00:28:41,280 --> 00:28:44,160
Speaker 1: to find a way to see how he can dedicate

655
00:28:44,200 --> 00:28:45,840
Speaker 1: more money towards his own future.

656
00:28:45,880 --> 00:28:48,120
Speaker 2: Well, the nice thing about a pension, similar to social security,

657
00:28:48,200 --> 00:28:50,480
Speaker 2: is that it's his kind of guaranteed stream of income, right,

658
00:28:50,520 --> 00:28:54,000
Speaker 2: so that it's not wobbly or if the market goes

659
00:28:54,000 --> 00:28:56,560
Speaker 2: through an extended bear market, you're not looking at a

660
00:28:56,600 --> 00:28:59,360
Speaker 2: smaller withdrawal amount because hey, the four percent rule says

661
00:28:59,400 --> 00:29:01,200
Speaker 2: I can't take as much out this year. So it's

662
00:29:01,280 --> 00:29:04,320
Speaker 2: nice to have those kind of guaranteed streams. But I'll

663
00:29:04,360 --> 00:29:07,560
Speaker 2: say this, she ashulely, you should also be working to

664
00:29:07,560 --> 00:29:10,120
Speaker 2: shore up your retirement through personal contributions.

665
00:29:10,120 --> 00:29:10,320
Speaker 1: Matt.

666
00:29:10,320 --> 00:29:13,520
Speaker 2: I think largely because of the three legged stool analogy

667
00:29:13,560 --> 00:29:16,560
Speaker 2: you just gave right, the pension combined with social security income.

668
00:29:16,720 --> 00:29:18,040
Speaker 1: Well, it could be enough, and.

669
00:29:18,000 --> 00:29:20,480
Speaker 2: It likely will be, but I'd like to have more

670
00:29:20,480 --> 00:29:22,479
Speaker 2: of a buffer personally, and so I think she might

671
00:29:22,520 --> 00:29:24,200
Speaker 2: be able to retire fairly comfortably.

672
00:29:24,320 --> 00:29:26,200
Speaker 1: But like you said, let's get some let's get a

673
00:29:26,200 --> 00:29:28,040
Speaker 1: little more patting in there, just to make sure that

674
00:29:28,160 --> 00:29:30,960
Speaker 1: when she's quits work she's able to land on a

675
00:29:31,040 --> 00:29:33,280
Speaker 1: nice cushion. Yeah, money exactly.

676
00:29:33,400 --> 00:29:35,480
Speaker 2: I think it's going to just give Ashley more options

677
00:29:35,520 --> 00:29:37,960
Speaker 2: in retirement, and so I would consider you.

678
00:29:38,000 --> 00:29:39,040
Speaker 1: She asked about what account.

679
00:29:39,040 --> 00:29:41,520
Speaker 2: I consider opening up a roth IRA and maxing out

680
00:29:41,520 --> 00:29:43,960
Speaker 2: those contributions for the next seven years, and that means

681
00:29:43,960 --> 00:29:46,640
Speaker 2: you can sock away seventy five hundred bucks still for

682
00:29:46,760 --> 00:29:49,120
Speaker 2: last year, eight thousand dollars for this year. And the

683
00:29:49,160 --> 00:29:51,320
Speaker 2: reason you can sock away more than what other people

684
00:29:51,360 --> 00:29:53,000
Speaker 2: are able to is because you're over the age of

685
00:29:53,040 --> 00:29:56,120
Speaker 2: fifty five and you qualify for that catch up contribution amount.

686
00:29:56,160 --> 00:29:59,360
Speaker 2: And so simple math tells me eight thousand bucks times

687
00:29:59,400 --> 00:30:02,560
Speaker 2: seven years equals fifty six thousand dollars. That's not factoring

688
00:30:02,600 --> 00:30:06,120
Speaker 2: in earnings, so it's likely to be double that or more.

689
00:30:06,480 --> 00:30:09,240
Speaker 1: The jung's gonna compound, right, so there's no harm.

690
00:30:09,280 --> 00:30:11,080
Speaker 2: I would say, in socking way more money if you're

691
00:30:11,080 --> 00:30:13,959
Speaker 2: able to met The other nice side of that is

692
00:30:14,000 --> 00:30:17,040
Speaker 2: by contributing more to retirement accounts and not just living

693
00:30:17,080 --> 00:30:20,400
Speaker 2: on everything you're bringing home, you're also kind of reducing

694
00:30:20,480 --> 00:30:22,600
Speaker 2: the amount that you need to fund in retirement because

695
00:30:22,640 --> 00:30:24,320
Speaker 2: you're getting used to living on just.

696
00:30:24,280 --> 00:30:26,480
Speaker 1: A little bit less. Yeah, So one other thing. It's

697
00:30:26,480 --> 00:30:28,680
Speaker 1: funny she mentioned that she wished that we were around

698
00:30:28,720 --> 00:30:31,320
Speaker 1: while when she was in her twenties. Well, and you

699
00:30:31,360 --> 00:30:35,160
Speaker 1: mentioned the roth Ira. Roth Ira didn't exist. The Ira existed.

700
00:30:35,520 --> 00:30:37,760
Speaker 1: I think that's been around for like forty plus years

701
00:30:37,800 --> 00:30:40,280
Speaker 1: or whatever, but the rath Ira was introduced in the nineties.

702
00:30:40,600 --> 00:30:42,720
Speaker 1: So that wasn't even something that you could have taken

703
00:30:42,760 --> 00:30:46,280
Speaker 1: advantage of. We were recommending our favorite and even if

704
00:30:46,600 --> 00:30:48,680
Speaker 1: we were wise enough to have done that when we

705
00:30:48,680 --> 00:30:54,640
Speaker 1: were kids, you couldn't have even contributed to that while

706
00:30:54,640 --> 00:30:56,440
Speaker 1: you were in your twenties. Well, we weren't kids.

707
00:30:56,520 --> 00:30:58,240
Speaker 2: I guess I just looked it up because I wasn't trying.

708
00:30:58,240 --> 00:31:00,200
Speaker 2: I knew it was like the nineteen ninety eight, So

709
00:31:00,440 --> 00:31:02,000
Speaker 2: ninety eight, Yeah, that was a good year, baby, So

710
00:31:02,040 --> 00:31:03,800
Speaker 2: I guess I was fourteen. I get my first job

711
00:31:03,840 --> 00:31:05,400
Speaker 2: at Chick fil A, I send it a roth I

712
00:31:05,400 --> 00:31:07,960
Speaker 2: probably could have started a rock then I just didn't

713
00:31:07,960 --> 00:31:08,440
Speaker 2: know about it.

714
00:31:08,440 --> 00:31:11,080
Speaker 1: Then that's right, But Joel mentioned the roth ira. We

715
00:31:11,080 --> 00:31:15,040
Speaker 1: think that prioritizing working with one of our favorite low

716
00:31:15,120 --> 00:31:19,400
Speaker 1: cost providers like Vanguard, Fidelity or Schwab. That's who you

717
00:31:19,440 --> 00:31:21,640
Speaker 1: should be looking to if you don't already have an

718
00:31:21,680 --> 00:31:23,400
Speaker 1: account with them, and it sounds like you don't because

719
00:31:23,400 --> 00:31:25,680
Speaker 1: it sounds like you have fully relied on your pension

720
00:31:25,960 --> 00:31:28,360
Speaker 1: but something else. You'll probably want to invest those dollars

721
00:31:28,600 --> 00:31:32,160
Speaker 1: in a target date fund instead of the standard S

722
00:31:32,200 --> 00:31:35,000
Speaker 1: and P five hundred index, which is what we typically

723
00:31:35,000 --> 00:31:38,040
Speaker 1: recommend for folks who are in their wealth building phase

724
00:31:38,080 --> 00:31:40,200
Speaker 1: of life. And this is because you'll actually be pulling

725
00:31:40,200 --> 00:31:42,840
Speaker 1: some of those dollars back out of the account in

726
00:31:42,880 --> 00:31:46,240
Speaker 1: the not too distant future. You're investing timeline, it's shorter,

727
00:31:46,480 --> 00:31:48,000
Speaker 1: and so it's going to be better to have a

728
00:31:48,040 --> 00:31:50,440
Speaker 1: more conservative mix of investments. You're going to have a

729
00:31:50,440 --> 00:31:52,520
Speaker 1: lot more of your dollars invested in bonds as opposed

730
00:31:52,560 --> 00:31:56,440
Speaker 1: to in stocks, and so again, the pension it's nice,

731
00:31:56,480 --> 00:31:58,600
Speaker 1: it's a luxury, but we also don't think that a

732
00:31:58,680 --> 00:32:02,200
Speaker 1: generous pension, it just completely mitigates the need to invest,

733
00:32:02,720 --> 00:32:04,720
Speaker 1: although for most folks it will mean that you can

734
00:32:04,880 --> 00:32:08,440
Speaker 1: just get away with investing a much smaller percentage of

735
00:32:08,480 --> 00:32:11,360
Speaker 1: your pay. And I'll also say too, it's worth thinking

736
00:32:11,400 --> 00:32:13,480
Speaker 1: through that some of your dollars you may not want

737
00:32:13,520 --> 00:32:16,600
Speaker 1: to invest at all. Again, it comes down to your timeline.

738
00:32:16,600 --> 00:32:19,760
Speaker 1: But if you have some big items that you're looking

739
00:32:19,800 --> 00:32:22,959
Speaker 1: to purchase shortly after retirement, or let's say you've got

740
00:32:23,000 --> 00:32:25,480
Speaker 1: a big trip plan to go around the world, if

741
00:32:25,520 --> 00:32:27,760
Speaker 1: you know that there are going to be some big

742
00:32:27,840 --> 00:32:30,560
Speaker 1: expenses in the near future, it might make sense instead

743
00:32:30,560 --> 00:32:33,800
Speaker 1: of investing those dollars to even like maybe put that

744
00:32:33,800 --> 00:32:35,800
Speaker 1: money in a high old savings account or even a

745
00:32:35,800 --> 00:32:37,640
Speaker 1: CD where you know you're getting a guaranteed rate for

746
00:32:37,680 --> 00:32:39,760
Speaker 1: a certain amount of time, at which point you'll get

747
00:32:39,960 --> 00:32:44,200
Speaker 1: guaranteed that you'll get all that money back because and more. Yeah,

748
00:32:44,240 --> 00:32:47,040
Speaker 1: and interesting, But I guess if you're looking at a

749
00:32:47,080 --> 00:32:50,560
Speaker 1: period of time that's any less than three years, there's

750
00:32:50,920 --> 00:32:53,720
Speaker 1: you have a higher chance of the money invested being

751
00:32:53,960 --> 00:32:56,880
Speaker 1: going down in value because of the fluctuations of the market.

752
00:32:56,880 --> 00:32:59,320
Speaker 1: And so think through to some of those future expenses

753
00:32:59,320 --> 00:33:02,480
Speaker 1: that you might have shortly after retirement, yeah, or even before,

754
00:33:02,600 --> 00:33:04,400
Speaker 1: even like leading up to retirement, you might be thinking,

755
00:33:04,960 --> 00:33:06,520
Speaker 1: all right, this is something I want to drop a

756
00:33:06,560 --> 00:33:08,240
Speaker 1: whole lot of money on. Just keep that in mind

757
00:33:08,280 --> 00:33:08,600
Speaker 1: as well.

758
00:33:08,640 --> 00:33:10,640
Speaker 2: And I think so again, going back to that pension

759
00:33:10,720 --> 00:33:13,760
Speaker 2: social Security combo might fund all the lifestyle you need,

760
00:33:13,960 --> 00:33:17,160
Speaker 2: but then maybe this is money that you can give away,

761
00:33:17,320 --> 00:33:19,200
Speaker 2: or it's money for that big trip that you haven't

762
00:33:19,240 --> 00:33:22,080
Speaker 2: budgeted for. With the just kind of general living expenses

763
00:33:22,120 --> 00:33:24,239
Speaker 2: being taken care of, you can think of this as

764
00:33:24,320 --> 00:33:26,680
Speaker 2: kind of like a gravy sort of slush fund, which

765
00:33:27,080 --> 00:33:28,720
Speaker 2: is kind of a fun thing to have when you

766
00:33:28,800 --> 00:33:33,040
Speaker 2: reach those retirement years, especially those early retirement years right

767
00:33:33,040 --> 00:33:34,680
Speaker 2: where you want to kind of live it up and

768
00:33:34,840 --> 00:33:37,719
Speaker 2: take advantage of the few years where the first few

769
00:33:37,800 --> 00:33:41,040
Speaker 2: years in particular that you're not working. And so I

770
00:33:41,040 --> 00:33:44,520
Speaker 2: will say this too about pensions. Ashley specifically is guaranteed

771
00:33:44,560 --> 00:33:47,200
Speaker 2: a significant monthly amount via the pension at this point, right,

772
00:33:47,640 --> 00:33:49,920
Speaker 2: But for everyone else out there, if you're working a

773
00:33:50,000 --> 00:33:52,200
Speaker 2: job that offers a pension, and let's say you're young,

774
00:33:52,240 --> 00:33:54,880
Speaker 2: you're in your thirties, it would be a bad idea

775
00:33:55,360 --> 00:33:58,680
Speaker 2: to bank on that funding your entire retirement pensions, especially

776
00:33:58,720 --> 00:34:01,479
Speaker 2: from private employers, can be taken away in an instant, right,

777
00:34:01,520 --> 00:34:03,840
Speaker 2: Like it's that rug pull that I got, It's multiple

778
00:34:03,920 --> 00:34:05,880
Speaker 2: years ahead of me leaving that job. It's like, hey,

779
00:34:05,880 --> 00:34:07,640
Speaker 2: guess what, We're not going to add any more to

780
00:34:07,640 --> 00:34:09,719
Speaker 2: your pension from here on out, no matter how long

781
00:34:09,760 --> 00:34:11,799
Speaker 2: you stay here. But you know, the people I was

782
00:34:11,840 --> 00:34:14,200
Speaker 2: working alongside who had been there for twenty twenty five,

783
00:34:14,280 --> 00:34:18,880
Speaker 2: thirty years, they had significantly more money, significantly more assets

784
00:34:18,880 --> 00:34:20,919
Speaker 2: built up in that pension. So I guess I would

785
00:34:20,920 --> 00:34:23,680
Speaker 2: just say, don't let the existence of a pension, the

786
00:34:23,719 --> 00:34:26,399
Speaker 2: current existence of a pension, lull you into a false

787
00:34:26,400 --> 00:34:28,399
Speaker 2: sense of security, thinking that's what's going to take care

788
00:34:28,400 --> 00:34:30,080
Speaker 2: of you in the future, and you can just kind

789
00:34:30,120 --> 00:34:30,919
Speaker 2: of like coast right.

790
00:34:31,000 --> 00:34:33,279
Speaker 1: Yeah, so you said security, which also makes me think

791
00:34:33,320 --> 00:34:36,040
Speaker 1: of social security, And I think there's an argument to

792
00:34:36,040 --> 00:34:39,600
Speaker 1: be made to not overly count on social security as well.

793
00:34:39,600 --> 00:34:41,960
Speaker 1: We've talked about this fairly in depth on the show before.

794
00:34:42,360 --> 00:34:44,600
Speaker 1: We think that there's a good chance that benefits will

795
00:34:44,640 --> 00:34:47,120
Speaker 1: remain It's not like it's going to completely go bust,

796
00:34:47,239 --> 00:34:49,360
Speaker 1: but maybe not in their current form. Yeah, there's a

797
00:34:49,400 --> 00:34:52,640
Speaker 1: good chance that could change though, whether that's the benefits

798
00:34:53,120 --> 00:34:57,160
Speaker 1: that that reduces, or maybe the retirement age gets slightly gradually,

799
00:34:57,280 --> 00:34:59,439
Speaker 1: very you know, very slowly over time, gets pushed back,

800
00:34:59,560 --> 00:35:02,480
Speaker 1: or in order to to truly keep it solvent, probably both, Yeah,

801
00:35:02,560 --> 00:35:05,279
Speaker 1: And so there's I don't there's just especially considering so,

802
00:35:05,480 --> 00:35:08,879
Speaker 1: you know, what the average life expectancy was when they

803
00:35:08,920 --> 00:35:11,560
Speaker 1: created social security back in the thirties was essentially like

804
00:35:11,600 --> 00:35:15,000
Speaker 1: sixty two, right, literally, I think it was fifty nine

805
00:35:15,040 --> 00:35:17,279
Speaker 1: and a half, and the life expect it's like fifty

806
00:35:17,320 --> 00:35:20,040
Speaker 1: eight fifty nine. The life expectancy today is seventy eight,

807
00:35:20,120 --> 00:35:23,360
Speaker 1: seventy nine, like literally is twenty years beyond what it

808
00:35:23,400 --> 00:35:24,880
Speaker 1: was back then. But the retirement age is still the

809
00:35:24,880 --> 00:35:27,759
Speaker 1: same as sixty five, and so, like it wasn't created

810
00:35:28,000 --> 00:35:30,960
Speaker 1: to have been used all that often. And now we

811
00:35:31,040 --> 00:35:34,880
Speaker 1: have a massive population that's quickly aging, which is awesome.

812
00:35:34,960 --> 00:35:38,960
Speaker 1: It's incredible that the benefits that we've seen, the technological

813
00:35:39,000 --> 00:35:42,160
Speaker 1: advances in medicine and health that it is allowing folks

814
00:35:42,200 --> 00:35:44,040
Speaker 1: to live longer. But what that means is, man, it's

815
00:35:44,040 --> 00:35:47,600
Speaker 1: putting a whole lot of strain on social security.

816
00:35:47,280 --> 00:35:50,600
Speaker 2: Especially given the dynamics that we and the popular workforce.

817
00:35:50,640 --> 00:35:53,080
Speaker 2: And yeah, it's more more and more people now on

818
00:35:53,120 --> 00:35:56,759
Speaker 2: Social Security increasingly every single year, and fewer people paying

819
00:35:56,760 --> 00:35:57,360
Speaker 2: into the system.

820
00:35:57,440 --> 00:35:58,960
Speaker 1: Yeah, it just it makes me think of like a

821
00:35:59,000 --> 00:36:01,600
Speaker 1: third world, you know, where there aren't regulations and you

822
00:36:01,600 --> 00:36:04,600
Speaker 1: see like all these power lines coming out of a

823
00:36:04,600 --> 00:36:07,399
Speaker 1: transformer box. You know, you know what I'm saying. It's

824
00:36:07,440 --> 00:36:10,440
Speaker 1: like every additional year, there's an additional line that kind

825
00:36:10,440 --> 00:36:12,319
Speaker 1: of just gets shoved into it and at some point

826
00:36:12,360 --> 00:36:14,040
Speaker 1: you're like, oh my gosh, that thing is about to

827
00:36:14,080 --> 00:36:16,240
Speaker 1: just like thing's going to blow up for sure, for sure,

828
00:36:16,360 --> 00:36:19,040
Speaker 1: that's what it feels like. And so we just want

829
00:36:19,080 --> 00:36:21,359
Speaker 1: to put that on your radar as well. That's another consideration.

830
00:36:22,120 --> 00:36:24,960
Speaker 1: It may not be as robust by the time any

831
00:36:25,040 --> 00:36:28,720
Speaker 1: of us retired, so it's also beneficial to make personal

832
00:36:28,719 --> 00:36:29,600
Speaker 1: contributions as well.

833
00:36:29,640 --> 00:36:29,839
Speaker 4: Yeah.

834
00:36:29,800 --> 00:36:31,279
Speaker 2: I think the closer you are, I guess, the more

835
00:36:31,360 --> 00:36:33,520
Speaker 2: likely you are to get what's promised to you when

836
00:36:33,520 --> 00:36:36,160
Speaker 2: you log into the Social Security website. But yeah, the

837
00:36:36,440 --> 00:36:40,080
Speaker 2: younger you are, maybe again a little more of that buffer,

838
00:36:40,080 --> 00:36:41,160
Speaker 2: a little more that margin of bear.

839
00:36:41,200 --> 00:36:44,200
Speaker 1: Yeah, Ashley's probably fine. Yeah, yeah, yeah, sorry, Actually I

840
00:36:44,200 --> 00:36:46,279
Speaker 1: hope I didn't. I wasn't at all attempting to like

841
00:36:46,440 --> 00:36:48,799
Speaker 1: freak you out. Yeah, and I don't think we did.

842
00:36:49,160 --> 00:36:49,880
Speaker 1: You're good, Ashley.

843
00:36:50,000 --> 00:36:51,560
Speaker 2: The last thing I want to mention. One other thing

844
00:36:51,600 --> 00:36:53,440
Speaker 2: to consider is what your living expenses are going to

845
00:36:53,480 --> 00:36:55,000
Speaker 2: be in retirement. Right, Are you gonna have a paid

846
00:36:55,000 --> 00:36:57,240
Speaker 2: off car or paid off mortgage? You might not actually

847
00:36:57,320 --> 00:36:59,520
Speaker 2: need to invest as much either, right, as fewer dead

848
00:36:59,560 --> 00:37:03,120
Speaker 2: obligations and yeah, so shocking way more I think makes sense.

849
00:37:03,160 --> 00:37:05,200
Speaker 2: But just keep that in mind too. I don't think

850
00:37:05,239 --> 00:37:08,239
Speaker 2: you need to fret about this because you are set

851
00:37:08,320 --> 00:37:11,040
Speaker 2: up largely by these other two massive sources of income

852
00:37:11,080 --> 00:37:13,520
Speaker 2: you're gonna have. But it's also not a bad idea

853
00:37:13,719 --> 00:37:15,560
Speaker 2: to plan for the rainy day and start saving more

854
00:37:15,600 --> 00:37:15,919
Speaker 2: as well.

855
00:37:16,000 --> 00:37:18,239
Speaker 1: That's right, and we've got more to get to. We'll

856
00:37:18,239 --> 00:37:21,640
Speaker 1: finally get to that financial cheese question. What's that all about?

857
00:37:21,760 --> 00:37:32,319
Speaker 1: We'll talk more personal finance right after this. All right, man,

858
00:37:32,320 --> 00:37:34,359
Speaker 1: we're back. We'll talking about financial cheese.

859
00:37:34,400 --> 00:37:36,440
Speaker 2: Is a crew here? Is it parmesan? Is it just

860
00:37:36,480 --> 00:37:38,840
Speaker 2: basic cheddar? Who knows you have a favorite type of cheese?

861
00:37:39,080 --> 00:37:41,920
Speaker 1: I like white cheddar? White. I'm very basic. You're like

862
00:37:41,920 --> 00:37:45,680
Speaker 1: from the heartland, that's like Middle America White Cheddar, which.

863
00:37:45,440 --> 00:37:47,480
Speaker 2: I kind of be honest, like the best of my

864
00:37:47,520 --> 00:37:49,640
Speaker 2: favorite place in the United States I visited over the years.

865
00:37:49,640 --> 00:37:53,319
Speaker 2: People wise, Wisconsin. Yeah, Heartland people, they're the best. Sorry

866
00:37:53,360 --> 00:37:55,960
Speaker 2: not to hate on the coastal elites, but I don't know.

867
00:37:55,960 --> 00:37:57,440
Speaker 2: I just I love the Midwestern Is.

868
00:37:57,440 --> 00:37:59,360
Speaker 1: Atlanta considered a coastal elite city?

869
00:38:00,080 --> 00:38:00,239
Speaker 4: Think?

870
00:38:00,520 --> 00:38:02,800
Speaker 1: No, I don't even know now, because we're not technically

871
00:38:02,840 --> 00:38:04,480
Speaker 1: on the coast. You can't see water. That's That's one

872
00:38:04,480 --> 00:38:06,120
Speaker 1: of the downsides of Atlanta is the fact that we

873
00:38:06,160 --> 00:38:08,879
Speaker 1: don't have like a nice, attractive large body of water.

874
00:38:08,920 --> 00:38:10,640
Speaker 1: We'll hang on the Chatahooch. You got the Chattaho. We

875
00:38:10,680 --> 00:38:12,959
Speaker 1: got the Hooch, and it's a large body of water,

876
00:38:13,480 --> 00:38:14,400
Speaker 1: not so attractive.

877
00:38:14,520 --> 00:38:16,920
Speaker 2: That's a good point. All right, Let's get to the

878
00:38:16,920 --> 00:38:18,960
Speaker 2: Facebook question of the week. This one comes from Amanda.

879
00:38:19,200 --> 00:38:21,360
Speaker 2: She says, so I met some financial goals, just a

880
00:38:21,360 --> 00:38:23,759
Speaker 2: bout my dream house. I feel like I've hit my goal.

881
00:38:24,160 --> 00:38:27,520
Speaker 2: But now my question is what's next. The sky's the

882
00:38:27,560 --> 00:38:30,120
Speaker 2: limit as long as I'm being financially responsible. Of course,

883
00:38:30,280 --> 00:38:32,520
Speaker 2: I've been thinking about the next stages of life and

884
00:38:32,600 --> 00:38:34,160
Speaker 2: what I want to get out of it. I guess

885
00:38:34,200 --> 00:38:37,200
Speaker 2: I've been so concentrated on reaching this one particular goal,

886
00:38:37,480 --> 00:38:39,600
Speaker 2: I haven't thought much about the next goal.

887
00:38:39,920 --> 00:38:40,279
Speaker 1: She says.

888
00:38:40,360 --> 00:38:42,799
Speaker 2: Yes, I have a fully funded emergency fund. Yes, I'm

889
00:38:42,840 --> 00:38:45,120
Speaker 2: saving a lot for retirement. This leads me to wonder

890
00:38:45,120 --> 00:38:48,200
Speaker 2: what is everyone else saving for? Is it that bucket list, vacation,

891
00:38:48,360 --> 00:38:51,520
Speaker 2: a vacation home, a new deck or patio. Just checking

892
00:38:51,520 --> 00:38:52,120
Speaker 2: in to see.

893
00:38:51,920 --> 00:38:54,520
Speaker 1: What others are saving for very nice. It was interesting

894
00:38:54,560 --> 00:38:54,880
Speaker 1: to see the.

895
00:38:54,880 --> 00:38:56,759
Speaker 2: Responses in here, because, of course, in the how to

896
00:38:56,800 --> 00:38:59,239
Speaker 2: Money Facebook group, everybody's got something they're saving for.

897
00:38:59,320 --> 00:39:02,080
Speaker 1: You know, well, I love this question because clearly there

898
00:39:02,080 --> 00:39:04,879
Speaker 1: are listeners out there who will be envious. Right they

899
00:39:04,880 --> 00:39:07,080
Speaker 1: are not where Amanda is, and that is where they

900
00:39:07,080 --> 00:39:09,160
Speaker 1: want to be. But yeah, on the other hand, you've

901
00:39:09,160 --> 00:39:11,359
Speaker 1: got how to many listeners and they are crushing it.

902
00:39:11,400 --> 00:39:14,680
Speaker 1: They've hit big goals, and they're also not sure where

903
00:39:14,680 --> 00:39:18,240
Speaker 1: to funnel those additional dollars. And if you are fairly frugal,

904
00:39:18,280 --> 00:39:20,719
Speaker 1: if you are investing regularly, if you're keeping your once

905
00:39:20,760 --> 00:39:23,280
Speaker 1: in check, you're bound to run up against this question.

906
00:39:23,320 --> 00:39:25,680
Speaker 1: This is a good problem to have, and we think

907
00:39:25,719 --> 00:39:28,480
Speaker 1: it's worth talking about. How does it you should proceed

908
00:39:28,560 --> 00:39:30,600
Speaker 1: And by the way, so the whole financial cheese thing,

909
00:39:30,640 --> 00:39:33,120
Speaker 1: it's a reference to a book Who Moved My Cheese.

910
00:39:33,120 --> 00:39:36,919
Speaker 1: It's like a modern day business parable about react thirty

911
00:39:36,960 --> 00:39:42,040
Speaker 1: years ago again from the nineties, perhaps modern, I guess, yeah,

912
00:39:42,080 --> 00:39:44,879
Speaker 1: But so I don't know, Amanda, maybe it's worth taking

913
00:39:45,120 --> 00:39:47,520
Speaker 1: checking that book out from the library and thinking through.

914
00:39:48,560 --> 00:39:52,560
Speaker 1: What it's focusing on is the process of change. Thus

915
00:39:52,640 --> 00:39:55,000
Speaker 1: the Who Moved My Cheese? And there are certain reactions

916
00:39:55,000 --> 00:39:58,000
Speaker 1: that you can have. You can you know, approach it

917
00:39:58,040 --> 00:39:59,960
Speaker 1: from a more defeat standpoint where you can kind of

918
00:40:00,160 --> 00:40:02,439
Speaker 1: enjoy the fact that, oh my gosh, I have now

919
00:40:02,480 --> 00:40:05,520
Speaker 1: the ability to pursue another goal, and ultimately that's the

920
00:40:05,560 --> 00:40:07,239
Speaker 1: direction that we want to kind of push you towards.

921
00:40:07,320 --> 00:40:09,640
Speaker 2: Yeah, okay, so some of the responses Matt were really good.

922
00:40:09,680 --> 00:40:11,360
Speaker 2: I mentioned that, So let me just go over a

923
00:40:11,360 --> 00:40:13,480
Speaker 2: couple and I think maybe they can be instructive and

924
00:40:13,560 --> 00:40:16,719
Speaker 2: at least kind of provoking some thought about what could

925
00:40:16,719 --> 00:40:17,360
Speaker 2: be next.

926
00:40:17,680 --> 00:40:19,440
Speaker 1: Just to spitball some ideas little.

927
00:40:19,280 --> 00:40:21,600
Speaker 2: Yeah, because I think sometimes you're like you do get

928
00:40:21,640 --> 00:40:23,480
Speaker 2: stuck and it's really nice to hear what somebody else

929
00:40:23,560 --> 00:40:25,120
Speaker 2: is trying to achieve and then you're like, oh, okay,

930
00:40:25,560 --> 00:40:28,600
Speaker 2: actually that sounds good, and then run it through your

931
00:40:28,640 --> 00:40:31,520
Speaker 2: own filter right about what matters to you and what

932
00:40:31,600 --> 00:40:34,920
Speaker 2: you and your family, whether that aligns with your philosophy

933
00:40:35,080 --> 00:40:37,640
Speaker 2: or not. But let's mention if you home personalization and

934
00:40:37,680 --> 00:40:41,040
Speaker 2: rental work that was one security, or just options that

935
00:40:41,080 --> 00:40:42,760
Speaker 2: was another thing. So people were like, I'm just building

936
00:40:42,800 --> 00:40:44,520
Speaker 2: up even more bank even though I met those goals,

937
00:40:44,640 --> 00:40:47,200
Speaker 2: because I just want more options in the future, which

938
00:40:47,239 --> 00:40:51,240
Speaker 2: I think basically investing more is the recommendation. In that case,

939
00:40:51,480 --> 00:40:53,560
Speaker 2: someone else said that now is a great time to

940
00:40:53,719 --> 00:40:57,560
Speaker 2: prioritize giving. I think that's a fantastic choice too, maybe

941
00:40:57,600 --> 00:40:59,680
Speaker 2: even dabbling in all the above. It doesn't have to

942
00:40:59,680 --> 00:41:02,320
Speaker 2: be like all of those immense resources that that Amanda

943
00:41:02,400 --> 00:41:04,440
Speaker 2: might have at her disposal at this point. It doesn't

944
00:41:04,440 --> 00:41:06,600
Speaker 2: have to flow into just one thing. And I think,

945
00:41:06,719 --> 00:41:08,160
Speaker 2: Matt at the heart of this question in a lot

946
00:41:08,200 --> 00:41:11,840
Speaker 2: of ways is how to transition from being a dedicated

947
00:41:11,880 --> 00:41:14,440
Speaker 2: saver over an extended period of time to someone who

948
00:41:14,480 --> 00:41:17,759
Speaker 2: can spend money on things they enjoy without going overboard.

949
00:41:18,000 --> 00:41:20,000
Speaker 2: And I think it takes time and intentionality to do

950
00:41:20,040 --> 00:41:23,120
Speaker 2: that right. I think the rudder moves slowly, but it's

951
00:41:23,160 --> 00:41:25,000
Speaker 2: also something that we should be seeking to do. It's

952
00:41:25,040 --> 00:41:27,799
Speaker 2: kind of this atrophied muscle if we've been so good

953
00:41:27,800 --> 00:41:30,600
Speaker 2: at saving and investing, that we need to build to

954
00:41:30,600 --> 00:41:31,720
Speaker 2: be able to spend mindfully.

955
00:41:31,719 --> 00:41:33,799
Speaker 1: And so yeah, this is why we have the craft

956
00:41:33,880 --> 00:41:36,239
Speaker 1: beer equivalent is because this isn't a muscle that we

957
00:41:36,280 --> 00:41:39,399
Speaker 1: want you to have let atrophy. Because if there are

958
00:41:39,440 --> 00:41:41,759
Speaker 1: some small ways that you know that you like to

959
00:41:41,760 --> 00:41:44,480
Speaker 1: spend money, well, over time you can ramp those up. Yes,

960
00:41:44,520 --> 00:41:46,120
Speaker 1: hopefully there is a way that you can expand on

961
00:41:46,160 --> 00:41:49,319
Speaker 1: those things. Like I remember, like early on in our relationship,

962
00:41:49,480 --> 00:41:52,680
Speaker 1: pouring you a little poor like a finger or two

963
00:41:52,800 --> 00:41:55,799
Speaker 1: of Talisker, one of my favorite whiskeys, one of my

964
00:41:55,800 --> 00:41:58,520
Speaker 1: favorite scotches specifically, and where do we get to go?

965
00:41:58,600 --> 00:42:02,839
Speaker 1: Last year Drick and Talisker at the distillery from on

966
00:42:02,880 --> 00:42:06,439
Speaker 1: the coast of the Isle of Sky in Scotland, after

967
00:42:06,520 --> 00:42:08,880
Speaker 1: which we walked up the hill and enjoyed some freshly

968
00:42:08,920 --> 00:42:11,560
Speaker 1: caught oysters. These aren't things that you and I could

969
00:42:11,600 --> 00:42:14,359
Speaker 1: have ever like dreamt of doing, right, but we It's

970
00:42:14,480 --> 00:42:16,400
Speaker 1: it's like, as I was thinking through, I was just like, well,

971
00:42:16,400 --> 00:42:19,359
Speaker 1: what's something It's like a germinating, yeah, and like it's

972
00:42:19,400 --> 00:42:22,000
Speaker 1: kind of growing into this beautiful plant. But that's why

973
00:42:22,040 --> 00:42:25,359
Speaker 1: we want folks to think through before the reach sort

974
00:42:25,400 --> 00:42:27,000
Speaker 1: of the end of the race and are like, oh,

975
00:42:27,360 --> 00:42:30,040
Speaker 1: across the finish line or whatever they feels like the

976
00:42:30,080 --> 00:42:32,920
Speaker 1: finish line, it's like, well, it's more like a journey.

977
00:42:32,920 --> 00:42:34,400
Speaker 1: It's not like a race. Like we're not trying to

978
00:42:34,480 --> 00:42:36,440
Speaker 1: race to get there. We're just trying to We want

979
00:42:36,440 --> 00:42:38,719
Speaker 1: you to enjoy the journey into and so much of

980
00:42:38,840 --> 00:42:40,759
Speaker 1: what makes the journey fun are the things that are

981
00:42:40,800 --> 00:42:44,640
Speaker 1: around you, Like not just the things like drink, but

982
00:42:44,719 --> 00:42:46,360
Speaker 1: the people like you, you know, like the fact that

983
00:42:46,360 --> 00:42:47,600
Speaker 1: you and I were able to do that together with

984
00:42:47,640 --> 00:42:49,279
Speaker 1: our wives. That was huge. That was so much fun.

985
00:42:49,320 --> 00:42:51,120
Speaker 2: I think something else we're of pointing out here is

986
00:42:51,719 --> 00:42:53,279
Speaker 2: to being outside the box get a little weird with

987
00:42:53,320 --> 00:42:55,480
Speaker 2: It makes me think of our friend Carl, who suffered

988
00:42:55,520 --> 00:42:57,440
Speaker 2: from the same issue, which he would readily admit and

989
00:42:57,480 --> 00:43:00,239
Speaker 2: has admitted on our podcast beform Mistery fifteen hundred and

990
00:43:00,520 --> 00:43:01,680
Speaker 2: one of the things he chose.

991
00:43:01,480 --> 00:43:03,560
Speaker 1: To link to his episode in the show notes it

992
00:43:03,600 --> 00:43:04,080
Speaker 1: was great.

993
00:43:03,920 --> 00:43:07,000
Speaker 2: And I have like so much respect for Carl, love

994
00:43:07,080 --> 00:43:09,959
Speaker 2: the guy and he's it's worth kind of going along

995
00:43:10,160 --> 00:43:11,799
Speaker 2: for the ride with him. One of the things he

996
00:43:11,840 --> 00:43:14,200
Speaker 2: decided to do because he's got more money than he'll

997
00:43:14,200 --> 00:43:16,400
Speaker 2: ever be able to spend because he's very frugal and

998
00:43:16,440 --> 00:43:19,120
Speaker 2: he's been a good investor. He spent ten thousand bucks

999
00:43:19,160 --> 00:43:22,080
Speaker 2: to bring one of his favorite bands to a local

1000
00:43:22,120 --> 00:43:24,120
Speaker 2: spot that he owns and invited all of his friends

1001
00:43:24,160 --> 00:43:25,960
Speaker 2: to come for free. Like he just basically threw a

1002
00:43:26,080 --> 00:43:28,920
Speaker 2: raging party. And I think that's such a great way

1003
00:43:29,200 --> 00:43:30,239
Speaker 2: to spend money, Like.

1004
00:43:30,200 --> 00:43:33,960
Speaker 1: Why the heck not, Carl is his own frat house, right.

1005
00:43:34,239 --> 00:43:35,680
Speaker 2: I don't know if they were doing keg stands or not,

1006
00:43:35,760 --> 00:43:37,799
Speaker 2: but still this sounds like a and he invited us.

1007
00:43:38,000 --> 00:43:39,839
Speaker 1: There was quality beer involved though, and I was so

1008
00:43:39,920 --> 00:43:42,320
Speaker 1: sad that we can Yeah yeah, we already had plans

1009
00:43:42,400 --> 00:43:43,960
Speaker 1: too hard to fly out to Colorado for that, but

1010
00:43:44,080 --> 00:43:46,760
Speaker 1: it was not meant to be. But when he is time, when.

1011
00:43:46,640 --> 00:43:48,600
Speaker 2: He announced that, I was like, this is exactly the

1012
00:43:48,680 --> 00:43:50,239
Speaker 2: kind of style I was so happy for h Yeah,

1013
00:43:50,280 --> 00:43:52,600
Speaker 2: Like it totally moved the happiness style for him in

1014
00:43:52,640 --> 00:43:54,759
Speaker 2: a big way. And ten grand at this point for

1015
00:43:54,840 --> 00:43:56,439
Speaker 2: him was like a drop in the bucket to invite

1016
00:43:56,480 --> 00:43:59,080
Speaker 2: his favorite band. And so maybe I don't know, Amanda,

1017
00:43:59,120 --> 00:44:01,120
Speaker 2: thin think outside the box. What are some maybe like

1018
00:44:01,200 --> 00:44:03,840
Speaker 2: weird stuff that I could do that I maybe normally

1019
00:44:03,840 --> 00:44:06,360
Speaker 2: wouldn't consider. Like Emily and I thought about that. Man,

1020
00:44:06,400 --> 00:44:08,600
Speaker 2: we didn't end up doing it, but like literally renting

1021
00:44:08,600 --> 00:44:10,880
Speaker 2: a cool place for our fortieth birthday, providing all the

1022
00:44:10,880 --> 00:44:13,960
Speaker 2: food and drinks, naming all our friends there, and what

1023
00:44:14,080 --> 00:44:15,920
Speaker 2: a fun night that would have been if we had

1024
00:44:15,960 --> 00:44:18,319
Speaker 2: actually had the if we had actually made it happen.

1025
00:44:18,520 --> 00:44:20,880
Speaker 2: So the gumption though, yeah, but it wasn't money that

1026
00:44:20,920 --> 00:44:22,560
Speaker 2: prevented that. It was like all these other things that

1027
00:44:22,560 --> 00:44:24,959
Speaker 2: were happening in our lives. It just felt so difficult.

1028
00:44:24,600 --> 00:44:26,399
Speaker 1: To pull off. Its other considerations as well.

1029
00:44:26,440 --> 00:44:28,120
Speaker 2: But those are the kind of things like I don't know, Yeah,

1030
00:44:28,120 --> 00:44:29,680
Speaker 2: maybe you throw a party. Maybe you just to how

1031
00:44:29,719 --> 00:44:32,279
Speaker 2: back it works so you can enjoy more free time.

1032
00:44:32,320 --> 00:44:33,719
Speaker 2: I don't know what it is, but go on, dude,

1033
00:44:33,760 --> 00:44:35,840
Speaker 2: I think that's huge. I think going part time is

1034
00:44:36,440 --> 00:44:38,640
Speaker 2: massive because I think for a lot of folks and

1035
00:44:38,680 --> 00:44:40,680
Speaker 2: what this is something that Amanda said. She says, I

1036
00:44:40,719 --> 00:44:44,200
Speaker 2: haven't thought much about the next goal and what happens

1037
00:44:44,239 --> 00:44:47,000
Speaker 2: when you work less? You have more time on your hand.

1038
00:44:47,080 --> 00:44:51,239
Speaker 2: So there's there's like a twofold benefit here in my opinion. One,

1039
00:44:51,440 --> 00:44:53,840
Speaker 2: there's a lot of folks they don't necessarily love what

1040
00:44:53,880 --> 00:44:56,520
Speaker 2: they do, like, they're working in a stressful environment and

1041
00:44:56,560 --> 00:44:58,919
Speaker 2: it's taking a toll on their mental health, it's taking

1042
00:44:58,920 --> 00:45:01,000
Speaker 2: a toll on their bodies, and so the ability to

1043
00:45:01,120 --> 00:45:03,800
Speaker 2: dial back on that a little bit could significantly increase

1044
00:45:03,840 --> 00:45:04,400
Speaker 2: their happiness.

1045
00:45:04,400 --> 00:45:06,520
Speaker 1: So there's a win, right. But then the second win

1046
00:45:06,640 --> 00:45:08,640
Speaker 1: is the fact that what have I gained from that?

1047
00:45:08,960 --> 00:45:11,000
Speaker 1: Not only what have I left behind, which is stress,

1048
00:45:11,080 --> 00:45:12,600
Speaker 1: but what have I moved on to? What am I

1049
00:45:12,600 --> 00:45:14,600
Speaker 1: now gaining? I'm gaining more time. And when you have

1050
00:45:14,640 --> 00:45:17,080
Speaker 1: more time, you have the ability to think through, oh, yeah,

1051
00:45:17,160 --> 00:45:18,520
Speaker 1: what do I want the rest of my life to

1052
00:45:18,560 --> 00:45:22,000
Speaker 1: look like? This isn't something that you have to wait

1053
00:45:22,280 --> 00:45:25,760
Speaker 1: to think about while you're on your deathbed. This is Amanda.

1054
00:45:25,840 --> 00:45:28,600
Speaker 1: You have the ability to start asking yourself these questions now,

1055
00:45:28,960 --> 00:45:32,960
Speaker 1: which is an amazing benefits to not have postponed this

1056
00:45:33,040 --> 00:45:34,120
Speaker 1: like all the way to then in your life.

1057
00:45:34,120 --> 00:45:36,360
Speaker 2: Basically, yeah, it feels like, oh man, I don't know,

1058
00:45:36,440 --> 00:45:38,640
Speaker 2: can I actually dial it back and work twenty hours

1059
00:45:38,640 --> 00:45:41,480
Speaker 2: a week instead of forty probably right. It sounds like

1060
00:45:41,520 --> 00:45:44,200
Speaker 2: you probably have enough excess that that's a real possibility

1061
00:45:44,239 --> 00:45:46,239
Speaker 2: for you if that's something you desire. One of the

1062
00:45:46,280 --> 00:45:49,239
Speaker 2: other replies Matt that I thought was super cool, Jackie said,

1063
00:45:49,560 --> 00:45:51,480
Speaker 2: it's an arc to figure out what we want. Let

1064
00:45:51,560 --> 00:45:54,799
Speaker 2: imagination and fantasy help figure it out. I thought that

1065
00:45:54,840 --> 00:45:58,080
Speaker 2: was so well said. And Ryan also, he had a

1066
00:45:58,080 --> 00:46:01,040
Speaker 2: great reply about visualizing the future. He said, what will

1067
00:46:01,080 --> 00:46:03,879
Speaker 2: you wish you had done when you're seventy Start to

1068
00:46:03,960 --> 00:46:06,719
Speaker 2: prioritize some of those experiences now, and made me think,

1069
00:46:06,719 --> 00:46:08,879
Speaker 2: my dad literally is seventy right now. It's something we've

1070
00:46:08,880 --> 00:46:11,640
Speaker 2: talked about, is going to hike the Camuino, Santiago and

1071
00:46:11,640 --> 00:46:14,920
Speaker 2: Spain together. And guess what, that's not something he'll be

1072
00:46:14,960 --> 00:46:16,719
Speaker 2: able to do in all likelihood in ten years.

1073
00:46:16,800 --> 00:46:18,799
Speaker 1: So, yeah, we got to get on it. If we're

1074
00:46:18,800 --> 00:46:21,000
Speaker 1: going to do it, has to start hiking some now.

1075
00:46:21,520 --> 00:46:24,040
Speaker 1: Even now. That would be difficult, it'd be difficult for us.

1076
00:46:24,080 --> 00:46:27,200
Speaker 1: But yes, if you can make that a priority though,

1077
00:46:27,360 --> 00:46:28,040
Speaker 1: is what you're saying.

1078
00:46:28,200 --> 00:46:30,040
Speaker 2: Yeah, one of the things you won't be able to

1079
00:46:30,080 --> 00:46:32,239
Speaker 2: do five, ten, fifteen years from now are you're going

1080
00:46:32,280 --> 00:46:32,919
Speaker 2: to do today?

1081
00:46:32,960 --> 00:46:34,680
Speaker 1: Yeah, there are going to be certain limitations. You also

1082
00:46:34,719 --> 00:46:37,480
Speaker 1: you talked about dabbling maybe all of the above sort

1083
00:46:37,480 --> 00:46:41,040
Speaker 1: of approach like select d all of the above, and

1084
00:46:41,239 --> 00:46:44,400
Speaker 1: we talked about this with Scott Rick on last week's episode.

1085
00:46:44,440 --> 00:46:47,640
Speaker 1: But the ability to experiment, Amanda, I think that's huge,

1086
00:46:47,920 --> 00:46:50,480
Speaker 1: And if you're not totally sure which direction you want

1087
00:46:50,520 --> 00:46:52,080
Speaker 1: to go, just start saying yes to a lot of

1088
00:46:52,080 --> 00:46:55,200
Speaker 1: stuff that isn't going to necessarily over commit you, like

1089
00:46:55,520 --> 00:46:58,360
Speaker 1: go to the fundraiser, talks to the people, have the conversations,

1090
00:46:58,880 --> 00:47:01,319
Speaker 1: because I feel like you never know, like what life

1091
00:47:01,400 --> 00:47:04,000
Speaker 1: might throw your weight, don't. I haven't even told you this.

1092
00:47:04,360 --> 00:47:06,760
Speaker 1: I had a conversation with somebody at a fundraising auction

1093
00:47:07,520 --> 00:47:11,160
Speaker 1: is another volunteer and he is a part of an

1094
00:47:11,200 --> 00:47:15,080
Speaker 1: advertising company in the own led billboards in Times Square,

1095
00:47:15,200 --> 00:47:16,759
Speaker 1: and he's like, wow, what do you do? I was like,

1096
00:47:16,840 --> 00:47:19,400
Speaker 1: I got a podcast And he said, well, we always

1097
00:47:19,400 --> 00:47:22,359
Speaker 1: have vacancies and so maybe we'll get you guys up there.

1098
00:47:23,160 --> 00:47:26,000
Speaker 1: And I said that would be awesome. How do how

1099
00:47:26,000 --> 00:47:27,360
Speaker 1: do we make sure that's not in New York? Just

1100
00:47:27,400 --> 00:47:28,600
Speaker 1: to take a picture in front of that up Yes,

1101
00:47:28,719 --> 00:47:30,600
Speaker 1: I would, but I haven't heard back from Well, we'll

1102
00:47:30,600 --> 00:47:33,160
Speaker 1: see if you'll see that pans out, I'm not necessarily

1103
00:47:33,160 --> 00:47:34,719
Speaker 1: going to hold my breath. But what tells everybody that

1104
00:47:36,440 --> 00:47:38,440
Speaker 1: it's a great line for the ladies, that's right. But

1105
00:47:38,520 --> 00:47:40,680
Speaker 1: what I'm pointing to here is the fact that I

1106
00:47:40,719 --> 00:47:42,480
Speaker 1: guess had I not been there and been willing to

1107
00:47:42,520 --> 00:47:45,560
Speaker 1: have that conversation with somebody, that would not even be

1108
00:47:45,600 --> 00:47:48,120
Speaker 1: on the table. And if you have time on your hand,

1109
00:47:48,160 --> 00:47:50,399
Speaker 1: and you have additional money on hand, and you're trying

1110
00:47:50,400 --> 00:47:52,280
Speaker 1: to figure out what to do with that time of money,

1111
00:47:52,320 --> 00:47:55,400
Speaker 1: then a bunt of little experiments I think is a

1112
00:47:55,440 --> 00:47:57,160
Speaker 1: way to kind of figure that out. Yep, agreed.

1113
00:47:57,360 --> 00:47:59,759
Speaker 2: And the other last thing I would say is just

1114
00:48:00,160 --> 00:48:04,279
Speaker 2: I think there is something really helpful about continuing to

1115
00:48:04,280 --> 00:48:06,680
Speaker 2: bank those dollars for future unknown things.

1116
00:48:06,760 --> 00:48:06,920
Speaker 1: Right.

1117
00:48:06,920 --> 00:48:09,880
Speaker 2: It's the things that you will partake into the future

1118
00:48:09,880 --> 00:48:11,560
Speaker 2: that matter a lot, that might require a lot of

1119
00:48:11,560 --> 00:48:13,480
Speaker 2: cash that you just don't know what they are yet.

1120
00:48:13,480 --> 00:48:15,000
Speaker 2: It makes me think of Emily and I were banking

1121
00:48:15,000 --> 00:48:16,600
Speaker 2: for the future when we didn't really know what we

1122
00:48:16,600 --> 00:48:18,200
Speaker 2: were going to spend on, and then she ends up

1123
00:48:18,200 --> 00:48:20,240
Speaker 2: going to grad school and boom, we're super.

1124
00:48:20,040 --> 00:48:21,480
Speaker 1: Glad we were doing it. Like we get the money

1125
00:48:21,480 --> 00:48:21,960
Speaker 1: here to do it.

1126
00:48:22,000 --> 00:48:24,080
Speaker 2: We didn't know that was coming, and then like pretty

1127
00:48:24,120 --> 00:48:26,479
Speaker 2: soon within a year's time, we were like, okay, cool,

1128
00:48:26,480 --> 00:48:28,080
Speaker 2: this is total. This is the direction we're going to

1129
00:48:28,120 --> 00:48:30,040
Speaker 2: go in. You're going back to school. Okay, this is

1130
00:48:30,080 --> 00:48:30,960
Speaker 2: gonna be pretty costly.

1131
00:48:31,200 --> 00:48:31,520
Speaker 1: Good thing.

1132
00:48:31,560 --> 00:48:33,080
Speaker 2: We were saving ahead even though we didn't know what

1133
00:48:33,080 --> 00:48:34,920
Speaker 2: we were saving for. So I think that can be beneficial.

1134
00:48:35,080 --> 00:48:36,560
Speaker 2: I also think, I guess that can be.

1135
00:48:36,480 --> 00:48:38,200
Speaker 1: A cop out. This is a double edged sword, because

1136
00:48:38,200 --> 00:48:39,719
Speaker 1: that's the thing where you could say, well, I don't know,

1137
00:48:39,760 --> 00:48:41,600
Speaker 1: but I'm doing good. I'm going to keep earning money

1138
00:48:41,640 --> 00:48:43,480
Speaker 1: because I'm making bank. And if you do that, un

1139
00:48:43,480 --> 00:48:45,839
Speaker 1: till you keep going at it with that mindset. It's

1140
00:48:45,840 --> 00:48:48,000
Speaker 1: so important to have a goal. And she's I think

1141
00:48:48,000 --> 00:48:49,440
Speaker 1: she would attest to this the fact that she was

1142
00:48:49,480 --> 00:48:51,319
Speaker 1: working towards this dream house that she's got. She is

1143
00:48:51,320 --> 00:48:53,719
Speaker 1: seeing the power of having something like that that you're

1144
00:48:53,719 --> 00:48:56,759
Speaker 1: looking towards and working towards. And so yeah, figure out

1145
00:48:56,800 --> 00:48:58,880
Speaker 1: what the next goal is, Amanda. We wish are the

1146
00:48:58,880 --> 00:49:00,440
Speaker 1: best and reach back out. Let it. Let us know.

1147
00:49:00,480 --> 00:49:03,960
Speaker 1: I guess what it is that you have sets as

1148
00:49:04,320 --> 00:49:06,719
Speaker 1: the next what's that next piece of cheese? You're going

1149
00:49:06,760 --> 00:49:08,680
Speaker 1: after Yeah, yeah, I was gonna try to think another

1150
00:49:08,680 --> 00:49:11,920
Speaker 1: word for gold went blank. But all right, man, let's

1151
00:49:11,920 --> 00:49:15,640
Speaker 1: get back to our beer. This was a Dunkel, specifically

1152
00:49:15,760 --> 00:49:19,600
Speaker 1: was called ALPSI. This is a Munich style logger. What

1153
00:49:19,640 --> 00:49:20,240
Speaker 1: are your thoughts?

1154
00:49:20,280 --> 00:49:22,480
Speaker 2: Okay to me? This beer was the definition of malty.

1155
00:49:22,600 --> 00:49:24,960
Speaker 2: It was oh yeah, dark, it was roasty. It's the

1156
00:49:24,960 --> 00:49:27,840
Speaker 2: first word I wrote down for people who don't love stouts.

1157
00:49:27,960 --> 00:49:30,080
Speaker 2: This is almost like a light version of a stout

1158
00:49:30,440 --> 00:49:33,120
Speaker 2: because it's got some of those characteristics, but it's not

1159
00:49:33,320 --> 00:49:38,040
Speaker 2: overly thick or overly intense. It is very approachable, maulty

1160
00:49:38,120 --> 00:49:38,600
Speaker 2: dark beer.

1161
00:49:39,320 --> 00:49:42,000
Speaker 1: Yeah, if you know that you don't like I Pas,

1162
00:49:42,280 --> 00:49:43,719
Speaker 1: you want to look at some of these more malt

1163
00:49:43,760 --> 00:49:46,799
Speaker 1: FORWD beers. So like a brown ale, a Dunkel, some

1164
00:49:46,840 --> 00:49:50,560
Speaker 1: of those darker European beers certainly would do it for you.

1165
00:49:50,680 --> 00:49:52,399
Speaker 2: But it's very old school too, because it's like a

1166
00:49:52,480 --> 00:49:55,680
Speaker 2: it's like an older German style beer, right, So they

1167
00:49:55,800 --> 00:49:57,800
Speaker 2: just had to me it feels like I'm drinking history.

1168
00:49:59,360 --> 00:50:02,040
Speaker 1: It tastes like your an old dusty books. Like literally,

1169
00:50:02,040 --> 00:50:04,440
Speaker 1: it's like liquified in the best way possible, e liquified

1170
00:50:04,440 --> 00:50:07,160
Speaker 1: holy bread is another thing that came to my mind

1171
00:50:07,360 --> 00:50:10,280
Speaker 1: where it feels like you're eating the fruit of the land.

1172
00:50:10,320 --> 00:50:13,319
Speaker 1: It's filling. Yeah. Yeah, But Mike and Christy think out

1173
00:50:13,360 --> 00:50:16,560
Speaker 1: so much for donating this one to the podcast and Joe,

1174
00:50:16,640 --> 00:50:18,839
Speaker 1: that's gonna be it. Listeners can find show notes up

1175
00:50:18,880 --> 00:50:22,399
Speaker 1: on our website at howdnomoney dot com. There you can

1176
00:50:22,400 --> 00:50:26,360
Speaker 1: find that conversation we had with Carl not too long ago, and.

1177
00:50:26,280 --> 00:50:28,480
Speaker 2: Oh, in one of the ways he uses real estate

1178
00:50:28,680 --> 00:50:32,560
Speaker 2: to uh investing to completely avoid taxes on income that

1179
00:50:32,600 --> 00:50:35,080
Speaker 2: he makes. Pretty cool. So oh that's right. Be sure

1180
00:50:35,080 --> 00:50:36,719
Speaker 2: to check that episode out if you haven't listened to

1181
00:50:36,760 --> 00:50:37,120
Speaker 2: it yet.

1182
00:50:37,200 --> 00:50:37,880
Speaker 1: Nice tease.

1183
00:50:38,080 --> 00:50:39,920
Speaker 2: Yeah, but that's gonna be it for this one, buddy.

1184
00:50:40,080 --> 00:50:41,600
Speaker 2: Until next time, Best Friends

1185
00:50:41,600 --> 00:50:43,920
Speaker 1: Out, Best Friends Out.