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

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Speaker 1: Today we're answering your listener questions.

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Speaker 2: You know what, buddy, are you ready to help people?

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Speaker 2: That's what we try to do here.

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Speaker 1: I was no podcast, literally, just responding to a listener email,

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Speaker 1: and she would just like thank me for my demeanor

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Speaker 1: and stuff, and.

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Speaker 2: Oh, really, yeah, I thought you were talking about the

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Speaker 2: other one that you had to get back to my email.

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Speaker 1: Demeanor is awesome, Matt.

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Speaker 2: No, But I was just like, you know what about

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Speaker 2: the complaint that was getting Oh, we got a complaint

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Speaker 2: today too.

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Speaker 1: Actually, we get those from time to time, and you.

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Speaker 2: Beat me to it because I love them. But I

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Speaker 2: took the one right before where the guy said that

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Speaker 2: he wanted to hook us up with some beers from

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Speaker 2: his brewery.

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Speaker 1: And always respond to those quicker, Hey.

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Speaker 2: I sit down, when I sit down, and I tackle

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Speaker 2: them all. I don't care what's in front of me.

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Speaker 2: It's sort of like a workout. I don't look ahead

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Speaker 2: to the workout. I just show up and I do

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Speaker 2: the work. Speaking of people sending us stuff, as we're

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Speaker 2: recording this, there's like a box of multiple, multiple different

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Speaker 2: types of popcorn from listener Bill. Shout out to Bill,

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Speaker 2: and Bill has been with us for not only listening.

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Speaker 1: To us four forever for a long time, but also.

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Speaker 2: Setting us his favorite popcorn, and he Northern Neck.

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Speaker 1: Also emails us regularly. One of our most regular listener

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Speaker 1: emails that we get is from Bill. So Bill, thank

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Speaker 1: you for sending us popcorns. Thank you, Bill, and we

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Speaker 1: just man, I just appreciate our listeners, even when we

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Speaker 1: get the emails that are like, you guys suck, You're

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Speaker 1: not doing it right. Honestly, I appreciate the feedback because

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Speaker 1: we can always stand to do better too.

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Speaker 2: Yeah, we are trying to help people for the most part.

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Speaker 2: I think that's what we do. But sometimes the way

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Speaker 2: we say it maybe misses the mark.

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Speaker 1: Yeah, so we'll try to be.

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Speaker 2: Clearer in our communications and how we phrase things.

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Speaker 1: And truly that is at the heart of this show

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Speaker 1: is to try to help people be better with their money.

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Speaker 1: If like we're not doing that, then we're not doing

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Speaker 1: our job. That's true.

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Speaker 2: But Joe, we're gonna hear from a listener who is

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Speaker 2: looking to reduce the cost of taken care of family,

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Speaker 2: specifically his parents. Another listener is dreaming of partial retirement

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Speaker 2: and he's got a really a tax question when it

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Speaker 2: comes to socking the way money for retirement. And another

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Speaker 2: listener has been paying a little extra on the mortgage.

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Speaker 2: She wants to know if that's a good idea, if

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Speaker 2: he should stop doing that. We'll get to those questions,

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Speaker 2: plus a couple others, most likely during this episode.

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Speaker 1: So the email I was responding to where I told

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Speaker 1: you she thanks me for my demeanor that it is kind.

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Speaker 1: People don't do that much anymore, Matt. I appreciate your

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Speaker 1: demeanor here on this podcast.

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Speaker 2: What's my demeanor? It's awake, a little stuff professional, happy

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Speaker 2: to enjoy a beer.

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Speaker 1: But one of the things she mentioned and she was

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Speaker 1: asking me about, was I show it for the beer. Yeah,

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Speaker 1: by the craft beer. Well, she was like, hey, I'm

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Speaker 1: with one of the big cell phone companies, but one

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Speaker 1: of the cool things that they're offering me right now

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Speaker 1: is access to a bank that has a superior savings

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Speaker 1: rate four point two percent in this environment, that is

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Speaker 1: really really good, all right, And then she told me

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Speaker 1: what she pays every single month. It to her yeah,

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Speaker 1: And I was like, oh, you think they're doing you

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Speaker 1: a service, but really this this is one of those

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Speaker 1: things that like feels like a perk, but really it's

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Speaker 1: only so they can continue like punching you in the

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Speaker 1: stomach while they look at you lovingly in the face.

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Speaker 1: That's that's exactly what this offer feels like.

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Speaker 2: That's a twisted, messed up visual What kind of twisted

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Speaker 2: mind do you have? Well that like you have experience

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Speaker 2: with this kind of behavior.

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Speaker 1: Maybe it's happened once. Okay, okay, so uh I think

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Speaker 1: question these sorts of perks like it's it's almost like

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Speaker 1: when you shop on certain retailers matt after you click

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Speaker 1: by uh, like this this happened when I bought concert

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Speaker 1: tickets recently, they're like, oh, here's two free months of

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Speaker 1: clear Oh, here's three free deliveries of food service whatever

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Speaker 1: it's called.

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Speaker 3: Dude.

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Speaker 2: Yeah, even on is it Venmo that they're hitting you with,

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Speaker 2: like these offers, these coupons, it is feeling more like

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Speaker 2: a value pack that showed up in my mailbox versus

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Speaker 2: any actual benefit that's being delivered.

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Speaker 1: And sometimes sometimes that's helpful, purple. Most of the time

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Speaker 1: it's just another way to advertise to you with this

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Speaker 1: bank offer connected to your cell phone company. It's I

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Speaker 1: would say four point two percent is great, especially in

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Speaker 1: today's environment. That's wonderful. That is good, But if you

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Speaker 1: only get it by signing up for the really expensive

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Speaker 1: cell phone service, it defeats the purpose and you're actually

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Speaker 1: probably coming out behind. So maybe, like got this is

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Speaker 1: what I suggested to her, Go find a better cell

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Speaker 1: phoned service. I mentioned a couple of our favorites that

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Speaker 1: we talk about regularly here on the show, meant Mobile,

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Speaker 1: US Mobile. Yeah, And I'm like, go with one of

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Speaker 1: those guys, and then get it. Get your own high

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Speaker 1: heeled savings account with a bank that doesn't and maybe

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Speaker 1: it won't be quite four point two percent, but you're

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Speaker 1: gonna save so much on your cell phone service that

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Speaker 1: it's gonna be worth the trade.

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Speaker 2: Off, you know. Okay, So you know what's at the

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Speaker 2: heart of this strategy. And I will say I wouldn't

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Speaker 2: be what's the company.

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Speaker 1: The cell phone company? Yeah, Verizon.

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Speaker 2: Oh of course, it's like the Bank of America equivalent

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Speaker 2: of cell phones. Right. I do think that they have

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Speaker 2: a chance at succeeding with this strategy because what is

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Speaker 2: at the heart of this is what is called loss aversion,

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Speaker 2: and specifically, over the past few years, what have we

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Speaker 2: all experienced when it comes to the interest rate that

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Speaker 2: our banks were paying us really high rates. And then

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Speaker 2: as we have seen inflation slowly but surely, I don't know,

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Speaker 2: let's just say slowly tick down and interest rates follow. Well,

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Speaker 2: of course we're seeing savings interest rates drop as well.

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Speaker 2: And we all okay, so we talked about loss a

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Speaker 2: version on the show before, but that's when you feel

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Speaker 2: a loss twice as hard as an equivalent game. Yeah, essentially, right,

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Speaker 2: And so people are seeing their savings rates tick down

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Speaker 2: and it sucks. It sucks bad, and they hate it

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Speaker 2: and they know it. They're very they're very much aware

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Speaker 2: of it, sort of like the press of gasoline. It's

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Speaker 2: something that they see all the time.

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Speaker 1: I'm almost got nostalgia for those five percent APR rates.

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Speaker 2: And if you were thinking about maybe hoping cell phone providers,

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Speaker 2: but then all of a sudden they're sweetening the pot

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Speaker 2: with this offer, you think, you know what, I'm actually

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Speaker 2: going to stay because they do a good job, they've

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Speaker 2: got any commercials, and also I'm gonna be able to

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Speaker 2: maintain high rate of interest. I think that's what's going

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Speaker 2: on here. Yeah, And I agree with you ultimately, if

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Speaker 2: you want to the absolute best way is to go

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Speaker 2: with your saving money on the selfhone provider, and you

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Speaker 2: are going with an online bank that's paying a high rate,

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Speaker 2: right Like, you've got your cake and you're eating it too.

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Speaker 1: Which are not far off, by the way, those highest

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Speaker 1: rates from what this horizon off for you.

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Speaker 2: Yeah, but it does depend on how much you've got

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Speaker 2: set aside, because if you've got let's say you've got

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Speaker 2: a fully funded emergency fund, maybe you are extra cautious.

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Speaker 2: You like to avoid risk, you like to have a

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Speaker 2: high level of liquidity, and you've got like six figures,

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Speaker 2: you know, let's say you've got one hundred and fifty

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Speaker 2: maybe two hundred thousand dollars. Okay, you need to start

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Speaker 2: running the numbers, yeah, because I mean I talked to

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Speaker 2: somebody recently who's with Verizon, and I think they're I mean,

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Speaker 2: I think for both of them they're paying like one

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Speaker 2: forty or something like that.

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Speaker 1: So it's hard to overcome.

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Speaker 2: A significant amount. But you start overcoming that monthly amount.

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Speaker 1: If you've got let's say six figures set aside, Yeah, and.

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Speaker 2: It saving's got one percent on one hundred thousand dollar,

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Speaker 2: you can start doing the math and it starts possibly

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Speaker 2: making sense to stick around.

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Speaker 1: I will say just her switching cell phone service providers

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Speaker 1: was going to save more than eight hundred dollars a

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Speaker 1: year for the two lines in her family. It's hard

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Speaker 1: to overcome that with the interest from the sound.

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Speaker 2: One percent. One hundred thousand dollars is one thousand bucks

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Speaker 2: a year though, So yes, that's when you didn't need

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Speaker 2: to start cunching the numbers.

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Speaker 1: But also one percent, Come on, we're not We're not

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Speaker 1: down to three point two percent yet.

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Speaker 2: Bank I'm an all Ali is a great bank, but

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Speaker 2: you we're talking mid you know, mid to lower threes.

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Speaker 2: I don't. I haven't checked it recently.

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Speaker 1: Yeah, but not not quite as good as c I

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Speaker 1: t as betterment right now, but it's it's still tops

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Speaker 1: and it's pretty good rate.

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Speaker 2: But I still like them.

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Speaker 1: Still, don't be sucker punched biperized with that offer.

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Speaker 2: That's right. Hey, let's introduce the beer.

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Speaker 1: Okay, this one. Yeah, I don't know how to pronounce

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Speaker 1: this Matt this pup polo mav, so I'm gonna pronounce

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Speaker 1: it pull out mv oh. That's the actual name of

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Speaker 1: the beer, and it's a it's a logger with spruce tips,

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Speaker 1: and this is by Von Trapp and Bissell Brothers, a

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Speaker 1: collaboration Bistle. I've had from beer from before, but never

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Speaker 1: had anything by by Von Trapp.

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Speaker 2: So, so is this the same v Trap from the

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Speaker 2: What Not of music? Were they a real family that

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Speaker 2: or was that purely fictional?

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Speaker 1: I think it was purely fictional.

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Speaker 2: Okay, that's just happened to be their last name. Yeah, okay,

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Speaker 2: So I know of a Von Trapp like resort up

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Speaker 2: in New England somewhere, and I bet it's like in

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Speaker 2: that same little town. I've had friends who they go

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Speaker 2: up there and okay, I don't know. They do like

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Speaker 2: maple syrup tapping and skiing and that sounds cool, very

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Speaker 2: Von Trap sounding things. Oh well, while you're up there,

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Speaker 2: I guess part of the reason New England.

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Speaker 1: I wanted to have this beer today is because it's

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Speaker 1: got spruce tips, and I was like, what a perfect

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Speaker 1: time a year to have a beer with Bruce does

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Speaker 1: Christmas week? Baby, let's do it most deff. Okay, So

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Speaker 1: let's move on to listener questions. If you have a

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Speaker 1: money question we would love to hear from you, just

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Speaker 1: record it on the voice memo app of your phone,

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Speaker 1: say your name at the beginning. Email it on over

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Speaker 1: to us how to moneypot at gmail dot com or

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Speaker 1: go to how to money dot com slash ask. You

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Speaker 1: can see the full directions there if that felt too

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Speaker 1: difficult for you. All right, man, let's get to the

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Speaker 1: first question of the day. This question is from a

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Speaker 1: listener who has a lot of in flux right now.

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Speaker 4: Hey, Madam Joel, I hope you guys are doing well.

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Speaker 4: My name is Rojat and I live in Denver, Colorado

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Speaker 4: with my wife and two pets, a doc and a cat.

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Speaker 4: My questions today might be a little bit different and

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Speaker 4: involve moving internationally. So my parents live in India omerginally

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Speaker 4: from India. I've been in the States for the last

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Speaker 4: eight years and my parents they are in their mid seventies,

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Speaker 4: so there's a high per populability that my wife and

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Speaker 4: I may need to move to India for a few

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Speaker 4: years to take care of them. My sisters are in

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Speaker 4: the same city as my parents and they care of

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Speaker 4: them as needed. But you know, in our culture, it's

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Speaker 4: kind of like my responsibility to take care of them.

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Speaker 4: So my questions are around what if any changes to

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Speaker 4: future investments in savings, you guys would suggest I should

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Speaker 4: start thinking about if I know that we may have

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Speaker 4: to move to India for a few years, but since

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Speaker 4: we don't know when we will move, how long we'll

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Speaker 4: need to move for, and whether or not we will

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Speaker 4: work while in India, and what income would look like

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Speaker 4: when we are there. My wife and I just turned

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Speaker 4: thirty this year. We don't have any kids, but we

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Speaker 4: do plan on starting a family in the next year.

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Speaker 4: Today we make around two hundred thousand dollars a year

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Speaker 4: and contribute to various retirement accounts, but we don't max

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Speaker 4: them out. We have six months of emergency funds saved

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Speaker 4: up and have no credit card debt. My wife has

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Speaker 4: around thirteen thousand student loan debt with interest rate around

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Speaker 4: or under four point three percent that are currently in

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Speaker 4: fourbearans and we make monthly payments of five hundred dollars

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Speaker 4: for them or towards them, and soon a new home

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Speaker 4: loan of around seventy five thousand dollars at an interest

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Speaker 4: rate between seven point seven to eight point five percent

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Speaker 4: for a house in India that I'm aiming to purchase

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Speaker 4: by the end of December for my parents as there

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Speaker 4: are quite a lot of unknowns and no defined timeline.

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Speaker 4: I would love to get your thoughts or advice on

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Speaker 4: how I should start thinking about the possibility of moving

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Speaker 4: to India and make changes to retirement accounts, investments, and savings.

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Speaker 4: I love the show. If you guys are ever in Denver,

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Speaker 4: hit me up. My wife and I would love to

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Speaker 4: host you guys and prepare some street Indian street food.

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Speaker 4: I mean, thank you for taking my question.

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Speaker 2: Oh Joe, do you like Indian street food?

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Speaker 1: I don't know. I'm not very cultured, so I don't

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Speaker 1: know they've ever had Indian street food.

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Speaker 2: I've never been to India neither, and I have rarely

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Speaker 2: had Indian food. But I'm down. I've had some great

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Speaker 2: I like me some curry curry before, but yeah, I.

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Speaker 1: Don't what is what is Indian treefood? Do you get

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Speaker 1: curry in a bowl and as Indian street food or

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Speaker 1: is it more like meat.

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Speaker 2: On a stick or something?

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Speaker 1: I don't like a kebab?

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Speaker 2: I don't know. I need Reje to enlighten minute to

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Speaker 2: come hang out heyng on Denver and have him whip

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Speaker 2: them up for you.

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Speaker 1: You know what I'm gonna Maybe I should email this

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Speaker 1: to reject to he he's got multiple pets, he said,

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Speaker 1: And where's he gonna put the pets if he moves

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Speaker 1: to India? Like, do you want me to volunteer your

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Speaker 1: house as a place where you can We are currently

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Speaker 1: a pet freezer. We've we decided Kate and I, Oh

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Speaker 1: my gosh, did I tell you about that?

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Speaker 2: So we talked about this on the show. Some friends

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Speaker 2: of ours.

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Speaker 1: They have what kind of dog do they have?

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Speaker 2: I can't remember if they have the poodle or if

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Speaker 2: they have the Burmese mountain dog, but they they when

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Speaker 2: you mate it with another and they create these.

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Speaker 1: You're making me think of dumb and dumber right now.

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Speaker 1: What do you get when he made a bulldog and

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Speaker 1: a shit?

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Speaker 2: I thin get. They're like Burma doodles or something. I

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Speaker 2: don't know, but they're just like the fluffiest, most hypo allergenic,

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Speaker 2: like cute little fluffy puppies. And some friends of ours

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Speaker 2: they had a litter and they always try to get

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Speaker 2: a bunch of their friends to experience the delights of

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Speaker 2: having this beautiful puppy. And Kate and I were just like,

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Speaker 2: we can't even bring this up to the kids. This

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Speaker 2: is a non this is a non starter.

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Speaker 1: I'm not gonna touch it someday later life.

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Speaker 2: Unlike you, y'all got at least two cats, multiple chickens.

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Speaker 1: Sorry, I'm gonna divul Just go for one more second.

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Speaker 1: On a weird tangent. My cat, one of the cats

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Speaker 1: likes to hide in our bathroom vanity. Like she'll open

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Speaker 1: the drawer and like somehow shove her way back in there.

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Speaker 2: It gets up underneath.

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Speaker 1: Every once in a while she can't get out. So

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Speaker 1: I'll go to the bathroom last night, it like before

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Speaker 1: I go to bed, and I hear like the cat

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Speaker 1: basically being like, let me out. It's really funny.

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Speaker 2: Okay, let's get to this is what you're missing on

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Speaker 2: on if you don't have pets in your life.

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Speaker 1: Yes, that's right, that's right. The cats are great, but

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Speaker 1: no dog for us right now. And Jette like, this

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Speaker 1: is a great question. I love too. I have so

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Speaker 1: much respect for your culture and for the emphasis that

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Speaker 1: it seems to be placed on taking care of parents,

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Speaker 1: and totally that's something that I think is just less

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Speaker 1: common here in the States, Matt.

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Speaker 2: And it's less Yeah, it's less common. I do think

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Speaker 2: I am hearing more families who are doing that though. Yeah,

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Speaker 2: Like I mean to return back to some of those. Yeah,

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Speaker 2: the multi generational household conversation is one that I've had

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Speaker 2: more and more, and I love hearing that because I

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Speaker 2: think it makes sense on so many on so many friends. Obviously,

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Speaker 2: from a financial standpoint, you're kind of pulling your resource

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Speaker 2: is to a certain extent, But from a relational standpoint,

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Speaker 2: for kids to grow up with their grandparents, like truly

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Speaker 2: getting to know them and for them to truly get

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Speaker 2: to know the kids, I didn't have that, Yeah, I mean, like, yeah,

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Speaker 2: Grandma and Grandpa man, they lived on the other side

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Speaker 2: of the country. It's so same with me.

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Speaker 1: Yeah, And I think the book Being Mortal by an

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Speaker 1: American Indian doctor really kind of helps them at that home.

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Speaker 1: For me too a little bit where I was like, oh, actually,

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Speaker 1: like I see the beauty in that. That's something that

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Speaker 1: feels culturally different than what I've experienced, but it's something

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Speaker 1: I'm fond of and family.

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Speaker 2: It's a creative solution to a tough problem that a

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Speaker 2: lot of people have. Yeah, Like, it truly does make

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Speaker 2: sense on like almost all fronts.

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Speaker 1: I'm seeing my neighbors do it right now, Like my

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Speaker 1: neighbor next door. She's one hundred years old. Her son

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Speaker 1: lives across the street, and she's kind to a point

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Speaker 1: where she can't even even though they live really close

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Speaker 1: to each other, she can't live alone at all, and

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Speaker 1: so somebody spends the night with her basically every night.

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Speaker 1: And this is kind of like elder planning. In American culture.

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Speaker 1: It's gotten really really expensive, and you almost have to

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Speaker 1: think outside of the box and live your life a

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Speaker 1: little differently so you can avoid some of those crazy

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Speaker 1: long term care costs.

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Speaker 2: That's right, yeah, and Rejet, he also talked about how

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Speaker 2: much money he said he's got six months worth of

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Speaker 2: emergency funds set aside, and the ability for him to

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Speaker 2: at some point go and help take care of his

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Speaker 2: folks is I think one of the best uses of

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Speaker 2: not only emergency fund but with it being a potentially

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Speaker 2: extended period of time of what you might call peace

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Speaker 2: out money, or just a degree of financial independence. It's

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Speaker 2: not just for traveling the world and for ditching work

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Speaker 2: for a sabbatical, but being able to take care of

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Speaker 2: the people in your life. It's far less stressful if

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Speaker 2: you have a strong financial buffer, or if you can

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Speaker 2: just reduce work, you know, take some time away. I

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Speaker 2: think amassing more investments and having that liquid cash is

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Speaker 2: going to give you Rejet the ability to make the

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Speaker 2: life changes that you need to make, but the ones

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Speaker 2: that you truly just want to be able to make.

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Speaker 2: Here giving you the flexibility to make some of these

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Speaker 2: changes if need be, depending on how long you're going

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Speaker 2: to be over there, Like you said, so many unknowns.

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Speaker 2: But if that was me, I would want to have

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Speaker 2: more though than just the six months worth of living

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Speaker 2: expenses I would want to have. I'd want to basically

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Speaker 2: beef that up. I'd be living on a lot less

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Speaker 2: in order to essentially build up like this war chest

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Speaker 2: to just give you the options to stay over there

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Speaker 2: maybe longer then you might normally feel comfortable. But by

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Speaker 2: having more cash like this on hand, it just is

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Speaker 2: going to decrease the level of stress that you and

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Speaker 2: your family is going to experience. I will say, based

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Speaker 2: on he mentioned the house that he's sounds like maybe

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Speaker 2: purchasing for his parents. I know that the cost of

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Speaker 2: living in India is substantially less than in America on average.

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Speaker 2: So one benefit though is that you've got the ability

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Speaker 2: to have your dollars go a whole lot further while

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Speaker 2: you're over there. So yeah, just one of the factors

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Speaker 2: to keep in mind.

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Speaker 1: Yeah, And I think what you're getting at too, is

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Speaker 1: that money isn't just to buy the the smart saving

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Speaker 1: and investing over a long period of time isn't just

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Speaker 1: to buy your own freedom or to buy fancy vacations

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Speaker 1: or anything like that. But it can really facilitate the

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Speaker 1: kind of life you want to live, especially with your family.

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Speaker 1: And makes me think of like, you know, Matt, you

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Speaker 1: and I've talked a lot about this. My mom is

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Speaker 1: not doing so great right now, and I've had a

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Speaker 1: lot more time, a lot more time flexibility, partly because

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Speaker 1: over a lot of years I've earned it over a

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Speaker 1: lot of years of hard work with my money, and

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Speaker 1: so I've been able to spend a lot of time

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Speaker 1: with her, take her to a doctor's appointment, grab a

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Speaker 1: random lunch or coffee or something like that, and that matters.

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Speaker 1: Like what Richett is doing here, I'm doing it on

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Speaker 1: like a smaller scale, right, I'm not moving across the

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Speaker 1: country to be with They're already liberally close by.

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Speaker 2: But I think that's not indianagil I know. Yeah, Okay, Yeah,

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Speaker 2: just making sure.

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Speaker 1: So I just love that. I think I would love

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Speaker 1: to see more people be able to experience that sort

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Speaker 1: of flexibility that money can buy.

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Speaker 2: Yeah, yeah, and you would. It would be much harder

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Speaker 2: to handle that situation if let's say you didn't invest

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Speaker 2: at all in your twenties or your thirties, and you're like, Okay,

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Speaker 2: now is the time to buckle up and finally grow

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Speaker 2: up and start setting money aside in my four one k. Yeah,

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Speaker 2: you'd be like, well, no, we can't. I can't not work.

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Speaker 2: But you can say no, no, no, I can not

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Speaker 2: work for the things that matter the most into here now. Yeah.

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Speaker 1: In today you mentioned liquid savings. I think that's really important.

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Speaker 1: Buffering building that up is one part of the equation

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Speaker 1: on the investment side, though, I think that that would

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Speaker 1: also mean putting money into accounts that have more flexibility.

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Speaker 1: Thinking roth IRA think in HSA right, four on ks

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Speaker 1: are great, get the match if you have one, but

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Speaker 1: those are going to be as flexible. You're gonna be

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Speaker 1: able to tap that money if need be before you

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Speaker 1: turn fifty nine and a half. And so I'd just say,

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Speaker 1: like after that match, and I would just prioritize accounts

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Speaker 1: that allow you greater access, even if maybe the tax

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Speaker 1: break isn't quite as meaningful, which the tax back on

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Speaker 1: the roth IRA HSA are still great. But if you

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Speaker 1: have more money to invest beyond that, a taxable brokerage

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Speaker 1: could make sense before putting more money in your four

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Speaker 1: on K because you might need that money before you

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Speaker 1: reach full retirement age. So yeah, I would kind of

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Speaker 1: be wanting to do both at the same time.

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Speaker 2: Really yeah. And I want to address the income side

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Speaker 2: of things too, because he talked about not knowing whether

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Speaker 2: or not he'd be able to work while he's over there.

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Speaker 1: I would.

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Speaker 2: I'm just thinking of a buddy and he works for

437
00:19:18,520 --> 00:19:21,359
Speaker 2: a global company and like more than half of his

438
00:19:21,440 --> 00:19:24,000
Speaker 2: team is in India, Like he's either waking up crazy

439
00:19:24,040 --> 00:19:26,680
Speaker 2: early to get on calls or he's he's got a

440
00:19:26,720 --> 00:19:29,520
Speaker 2: ton of flexibility during the day. It goes for runs,

441
00:19:30,160 --> 00:19:33,120
Speaker 2: but he's either up really early or up a little

442
00:19:33,160 --> 00:19:36,160
Speaker 2: bit later to make sure that they're able to communicate. Well,

443
00:19:36,200 --> 00:19:38,920
Speaker 2: I think he didn't. Did Jette say what he does?

444
00:19:39,640 --> 00:19:42,000
Speaker 2: He said income, but I don't think he said his profession.

445
00:19:42,000 --> 00:19:44,160
Speaker 2: But if you do have a job or a company

446
00:19:44,280 --> 00:19:47,440
Speaker 2: or a profession that allows you to maintain the work

447
00:19:47,480 --> 00:19:50,960
Speaker 2: that you're currently doing while abroad. There's totally a way

448
00:19:51,040 --> 00:19:54,119
Speaker 2: of doing that from a technology and hopefully from the

449
00:19:54,160 --> 00:19:56,840
Speaker 2: type of work that you're doing. Dude, Like, then you've

450
00:19:56,840 --> 00:19:58,800
Speaker 2: got the best of both worlds potentially, right, Like you

451
00:19:58,840 --> 00:20:00,919
Speaker 2: are still making like, maybe you're not going to get

452
00:20:00,920 --> 00:20:02,560
Speaker 2: the same kind of raises because they're like, well, you're

453
00:20:02,560 --> 00:20:04,360
Speaker 2: not here in the office, you're not able to show

454
00:20:04,400 --> 00:20:07,600
Speaker 2: up to the team building Fridays or whatever. I don't

455
00:20:07,600 --> 00:20:09,560
Speaker 2: know whatever company might want to call it.

456
00:20:10,359 --> 00:20:12,920
Speaker 1: But we call ours, Yeah, the team building Friday.

457
00:20:13,160 --> 00:20:15,840
Speaker 2: But because you you've reduced your cost of living so

458
00:20:15,880 --> 00:20:19,520
Speaker 2: significantly as well, Uh, that could honestly leave you in

459
00:20:19,560 --> 00:20:23,480
Speaker 2: a like a really really strong position, uh, assuming that

460
00:20:23,480 --> 00:20:26,679
Speaker 2: you're there for an extended period of time. But even still, like,

461
00:20:27,320 --> 00:20:30,000
Speaker 2: I can't imagine that you're gonna do nothing while you're

462
00:20:30,040 --> 00:20:34,440
Speaker 2: over there, even if it's tricky from a visa's standpoint,

463
00:20:34,480 --> 00:20:36,399
Speaker 2: were visas and you know, and as far as your

464
00:20:36,400 --> 00:20:38,920
Speaker 2: wife and what she's gonna do, I don't know. I'm

465
00:20:38,960 --> 00:20:41,159
Speaker 2: just optimistic that you're not going to go over there

466
00:20:41,200 --> 00:20:43,720
Speaker 2: and just completely sit around hang out with your parents, like.

467
00:20:43,680 --> 00:20:45,840
Speaker 1: You're gonna go two hundred K to zero of income.

468
00:20:46,040 --> 00:20:49,240
Speaker 2: Yeah, and going from zero assistance provided to your parents

469
00:20:49,240 --> 00:20:51,679
Speaker 2: to like every second of the day where you're at

470
00:20:51,680 --> 00:20:54,200
Speaker 2: their beck and call, Like, I can't imagine that they're

471
00:20:54,240 --> 00:20:56,040
Speaker 2: going to need that, but then also that you would

472
00:20:56,080 --> 00:20:58,679
Speaker 2: want that necessarily. So I just got a feeling that

473
00:20:58,680 --> 00:21:00,520
Speaker 2: you're gonna be able to provide yourself some to income

474
00:21:00,640 --> 00:21:02,680
Speaker 2: at the very least on a part time basis while

475
00:21:02,680 --> 00:21:03,160
Speaker 2: you're over there.

476
00:21:03,160 --> 00:21:05,399
Speaker 1: Maybe part time might be the sweet spot, based on

477
00:21:05,440 --> 00:21:07,320
Speaker 1: how much time you want to give and the fact

478
00:21:07,320 --> 00:21:09,080
Speaker 1: that you don't need to earn quite as much. I

479
00:21:09,119 --> 00:21:12,119
Speaker 1: would also be working in the time being, like right

480
00:21:12,160 --> 00:21:14,280
Speaker 1: now to reduce debt. So if you can pay off

481
00:21:14,280 --> 00:21:17,120
Speaker 1: the home loan before taking off the India, that would

482
00:21:17,160 --> 00:21:19,920
Speaker 1: be huge. Right paying off the student loan in full,

483
00:21:20,240 --> 00:21:21,439
Speaker 1: I think it would be a tough thing to do

484
00:21:21,480 --> 00:21:24,600
Speaker 1: in this time span that he's talking about, but that

485
00:21:24,680 --> 00:21:26,240
Speaker 1: might be a goal of mine to try to work

486
00:21:26,280 --> 00:21:29,240
Speaker 1: towards that. And the interest rate isn't all that bad

487
00:21:29,280 --> 00:21:32,040
Speaker 1: on that student loan either, but still I would spend

488
00:21:32,080 --> 00:21:36,000
Speaker 1: time like simplifying your finances, having fewer monthly obligations. Those

489
00:21:36,040 --> 00:21:38,320
Speaker 1: are going to have a similar result as saving up

490
00:21:38,359 --> 00:21:41,480
Speaker 1: more cash just not having as much money that needs

491
00:21:41,520 --> 00:21:43,320
Speaker 1: to go out every single month. You know you're going

492
00:21:43,400 --> 00:21:46,080
Speaker 1: to require less income if you have fewer debt payments

493
00:21:46,119 --> 00:21:48,880
Speaker 1: and or you have more cash in the bank. So

494
00:21:48,960 --> 00:21:51,320
Speaker 1: I think that's just kind of a strategic way to

495
00:21:51,400 --> 00:21:53,080
Speaker 1: approach this move to India.

496
00:21:53,160 --> 00:21:54,720
Speaker 2: Yeah, I think you do have to be careful, though,

497
00:21:54,760 --> 00:21:57,560
Speaker 2: I think you got to not overdo it because you

498
00:21:57,600 --> 00:21:59,679
Speaker 2: could say, oh, this is going to happen. I got

499
00:21:59,720 --> 00:22:03,800
Speaker 2: to prepare like crazy and then and I'm sure rejet

500
00:22:03,840 --> 00:22:06,879
Speaker 2: that your wife is loving and very supportive, but I

501
00:22:06,880 --> 00:22:11,840
Speaker 2: also can picture of very frustrated wife who's like, hey, like,

502
00:22:11,880 --> 00:22:13,280
Speaker 2: when are we going to live our life? Like when

503
00:22:13,280 --> 00:22:16,240
Speaker 2: are we gonna do the things that we have set

504
00:22:16,320 --> 00:22:19,760
Speaker 2: as goals for our family? And so only you know

505
00:22:20,240 --> 00:22:23,400
Speaker 2: how to strike that balance and the responsibilities from being

506
00:22:24,040 --> 00:22:26,359
Speaker 2: the son. I don't know, maybe the firstborn or something.

507
00:22:26,520 --> 00:22:29,639
Speaker 2: I'm just assuming that sort of duties I guess that

508
00:22:29,680 --> 00:22:32,359
Speaker 2: are expected of you, but then also the duties that

509
00:22:32,400 --> 00:22:34,080
Speaker 2: you signed up for. But when you married your wife,

510
00:22:34,080 --> 00:22:37,520
Speaker 2: there's a man I would just be paying special attention

511
00:22:37,880 --> 00:22:40,960
Speaker 2: to your wife and just the y'all's relationship and making

512
00:22:40,960 --> 00:22:44,359
Speaker 2: sure that y'all are communicating well to make sure that

513
00:22:44,720 --> 00:22:47,359
Speaker 2: everyone's on board. This is something that y'all are doing together,

514
00:22:47,880 --> 00:22:51,320
Speaker 2: and that you're not just constantly preparing for some you know,

515
00:22:51,359 --> 00:22:52,560
Speaker 2: something that's going to happen down the read.

516
00:22:52,600 --> 00:22:53,879
Speaker 1: And it sounds like you have the finger on the

517
00:22:53,880 --> 00:22:57,800
Speaker 1: pulse of your finances. Just make sure. I think it

518
00:22:57,840 --> 00:23:00,320
Speaker 1: could be tempting to go so hard to like I

519
00:23:00,320 --> 00:23:01,880
Speaker 1: want to be so prepared. It made me think mad

520
00:23:01,920 --> 00:23:05,359
Speaker 1: of the biblical story of Joseph in Egypt, right, and

521
00:23:05,400 --> 00:23:07,720
Speaker 1: he gets the dream and they're preparing for the famine

522
00:23:07,760 --> 00:23:10,520
Speaker 1: to come, and in that case they knew exactly what

523
00:23:10,600 --> 00:23:13,320
Speaker 1: was coming down the pike, or according to the dream, right,

524
00:23:13,680 --> 00:23:17,000
Speaker 1: But seven years, seven years, seven years of each right,

525
00:23:17,640 --> 00:23:18,159
Speaker 1: And I just.

526
00:23:18,160 --> 00:23:21,920
Speaker 2: Don't think Ridgett has an idea that seven years from now, right,

527
00:23:22,040 --> 00:23:24,919
Speaker 2: we will you know, this will all make sense, you know,

528
00:23:25,040 --> 00:23:27,119
Speaker 2: Like that's one of the problems, is exactly it feels

529
00:23:27,240 --> 00:23:28,320
Speaker 2: it's very open ended.

530
00:23:28,160 --> 00:23:30,040
Speaker 1: And so you just have to be careful, like you said,

531
00:23:30,119 --> 00:23:35,879
Speaker 1: to plan well, but also to realize that those plans

532
00:23:35,880 --> 00:23:38,640
Speaker 1: are going to be somewhat shaky based on timeline and

533
00:23:38,680 --> 00:23:41,520
Speaker 1: based on the specifics. And you also don't want to

534
00:23:42,320 --> 00:23:44,480
Speaker 1: go so hard in the paint that you're unable to

535
00:23:44,520 --> 00:23:47,679
Speaker 1: really enjoy these next couple of years where before you

536
00:23:47,720 --> 00:23:50,359
Speaker 1: move to India, so you're preparing well but also enjoying

537
00:23:50,359 --> 00:23:50,919
Speaker 1: the time that you have.

538
00:23:51,280 --> 00:23:54,320
Speaker 2: That's that craft beer equivalent, dude, finding that balance. We've

539
00:23:54,320 --> 00:23:55,960
Speaker 2: got more to get to. We're going to hear from

540
00:23:56,080 --> 00:23:59,880
Speaker 2: a listener who's asking about one of our new favorite accounts,

541
00:24:00,040 --> 00:24:01,160
Speaker 2: the Donor Advised Fund.

542
00:24:01,200 --> 00:24:01,760
Speaker 1: Will get to that.

543
00:24:01,840 --> 00:24:04,720
Speaker 2: Plus we'll talk about some wroths, all that and more

544
00:24:04,800 --> 00:24:05,320
Speaker 2: right after this.

545
00:24:13,280 --> 00:24:15,760
Speaker 1: Alright, Matt, come back, let's tell me get to our

546
00:24:15,800 --> 00:24:18,479
Speaker 1: next question. This one is kind of one of the

547
00:24:18,520 --> 00:24:22,000
Speaker 1: most classic personal finance questions out there, but it's always

548
00:24:22,040 --> 00:24:22,639
Speaker 1: fun to revisit.

549
00:24:23,200 --> 00:24:25,520
Speaker 3: Hi, this is Ethan from Denver, and I am wondering

550
00:24:25,560 --> 00:24:28,760
Speaker 3: if I should wroth or not wroth this upcoming year.

551
00:24:29,359 --> 00:24:31,680
Speaker 3: I am in the twenty four percent tax bracket, married

552
00:24:31,720 --> 00:24:35,080
Speaker 3: filing jointly with all W two income. I normally max

553
00:24:35,119 --> 00:24:37,160
Speaker 3: out o roth IRA and in the last few years

554
00:24:37,200 --> 00:24:39,760
Speaker 3: I have been doing the back door WROTH. I also

555
00:24:39,800 --> 00:24:42,560
Speaker 3: contribute to a WROTH four to oh one K. I

556
00:24:42,640 --> 00:24:45,560
Speaker 3: dream of a partial retirement someday, but it feels impossible

557
00:24:45,640 --> 00:24:48,159
Speaker 3: to know for sure what tax bracket I'll be in

558
00:24:48,240 --> 00:24:51,640
Speaker 3: when I want to start withdrawing contributions, So I can't

559
00:24:51,680 --> 00:24:54,040
Speaker 3: decide if I should pay the twenty four percent tax

560
00:24:54,080 --> 00:24:56,440
Speaker 3: on the contributions now or if I should wait until

561
00:24:56,440 --> 00:24:59,439
Speaker 3: I'm in the next tax bracket before switching to traditional.

562
00:25:00,400 --> 00:25:02,439
Speaker 3: Even though I might be paying a higher percentage of

563
00:25:02,480 --> 00:25:04,800
Speaker 3: taxes now, there is some comfort in knowing that I'll

564
00:25:04,840 --> 00:25:08,320
Speaker 3: never pay taxes on this money. Again, appreciate the advice,

565
00:25:08,640 --> 00:25:09,879
Speaker 3: Thank you man.

566
00:25:09,920 --> 00:25:12,240
Speaker 2: It sounds like Ethan is in the messy middle He's

567
00:25:12,280 --> 00:25:16,200
Speaker 2: realizing that, oh, it used to make all the sense

568
00:25:16,200 --> 00:25:18,080
Speaker 2: in the world to Roth but he's probably Yeah, he's

569
00:25:18,080 --> 00:25:21,280
Speaker 2: talking about tax brackets, he's seeing his income increase. He's

570
00:25:21,280 --> 00:25:24,679
Speaker 2: trying to figure out what is the most optimized moved

571
00:25:24,880 --> 00:25:26,760
Speaker 2: to make. So I'll just cut to the I'll cut

572
00:25:26,840 --> 00:25:30,640
Speaker 2: to the chase. A roth ira and a traditional four

573
00:25:30,760 --> 00:25:34,520
Speaker 2: one K is what we typically recommend, and for somebody

574
00:25:34,520 --> 00:25:36,400
Speaker 2: will spend the rest of this time explaining why.

575
00:25:36,240 --> 00:25:38,840
Speaker 1: Yeah, somebody in this situation in particular, because he is

576
00:25:38,840 --> 00:25:39,800
Speaker 1: in that middle spot.

577
00:25:39,880 --> 00:25:40,000
Speaker 3: Right.

578
00:25:40,080 --> 00:25:42,879
Speaker 1: Let's say you are really early on in your wealth

579
00:25:42,880 --> 00:25:47,720
Speaker 1: building trajectory and your first job out of college or something,

580
00:25:47,720 --> 00:25:50,560
Speaker 1: and you're like, mam, I my salary's not awesome, but gosh,

581
00:25:50,640 --> 00:25:55,280
Speaker 1: I'm being frugal and I'm attempting to do but contributions

582
00:25:55,480 --> 00:25:58,040
Speaker 1: significant contributions to my IRA into my four one K.

583
00:25:58,080 --> 00:26:00,000
Speaker 1: What should I do? The answer is probably gonna be

584
00:26:00,160 --> 00:26:02,960
Speaker 1: wroth both of them. Right, But let's say then, the

585
00:26:02,960 --> 00:26:05,119
Speaker 1: further along you get in your career you're crushing it.

586
00:26:05,560 --> 00:26:08,840
Speaker 1: The more that your income goes up, the more traditional

587
00:26:09,280 --> 00:26:11,959
Speaker 1: can make sense. And it's just impossible here to make

588
00:26:12,000 --> 00:26:15,840
Speaker 1: a perfect decision because we're dealing with unknowns around future

589
00:26:15,840 --> 00:26:18,720
Speaker 1: tax rates as a society, but we're also dealing with

590
00:26:18,840 --> 00:26:23,240
Speaker 1: unknowns about our individual tax rates. Where will my individual

591
00:26:23,240 --> 00:26:27,080
Speaker 1: effective tax rate be? It's hard to know, right, it's

592
00:26:27,080 --> 00:26:31,160
Speaker 1: hard to specify. For people who are incredible savers and investors,

593
00:26:31,480 --> 00:26:33,159
Speaker 1: you might find that it's higher in retirement. But what

594
00:26:33,320 --> 00:26:38,280
Speaker 1: most people find is that, especially if they're high earners, now,

595
00:26:38,680 --> 00:26:40,560
Speaker 1: the likelihood is strong that you're going to be in

596
00:26:40,560 --> 00:26:44,560
Speaker 1: a lower tax bracket in retirement, and that actually makes

597
00:26:44,680 --> 00:26:48,360
Speaker 1: traditional contributions, especially in that four one K, make more sense.

598
00:26:48,440 --> 00:26:50,639
Speaker 2: Now, Yeah, I hear what you're saying, which is that,

599
00:26:50,760 --> 00:26:52,720
Speaker 2: like if you know you're making bank right now, and

600
00:26:52,800 --> 00:26:55,720
Speaker 2: that you are like, oh man ah, I am working

601
00:26:55,840 --> 00:26:59,040
Speaker 2: really hard, I'm getting after it. Yes, then you might

602
00:26:59,119 --> 00:27:02,600
Speaker 2: know that you are on likely to continue to generate

603
00:27:02,640 --> 00:27:04,760
Speaker 2: an income like that. But it also depends on how

604
00:27:04,840 --> 00:27:07,400
Speaker 2: much you invest. Yeah, because if you are I mean,

605
00:27:07,560 --> 00:27:09,120
Speaker 2: making a ton of money right now, but then you're

606
00:27:09,119 --> 00:27:12,760
Speaker 2: investing like crazy, there's a good chance that the money

607
00:27:12,760 --> 00:27:15,040
Speaker 2: you have on hand later and down the road and

608
00:27:15,240 --> 00:27:18,600
Speaker 2: the kind of lifestyle essentially that you are requiring of

609
00:27:18,640 --> 00:27:21,639
Speaker 2: your money means that you have to withdraw more money,

610
00:27:22,240 --> 00:27:26,680
Speaker 2: which means not necessarily a higher cost of living from

611
00:27:26,880 --> 00:27:29,200
Speaker 2: the income that you're drawing up, but possibly a similar

612
00:27:29,720 --> 00:27:32,600
Speaker 2: similar expenses to what you're experiencing in there today.

613
00:27:32,640 --> 00:27:35,800
Speaker 1: When you look at the vast majority of retirees, though,

614
00:27:35,880 --> 00:27:39,560
Speaker 1: I think you see that on average, they end up

615
00:27:39,560 --> 00:27:44,120
Speaker 1: paying a reasonably lower overall effective tax rate in their

616
00:27:44,119 --> 00:27:44,960
Speaker 1: retirement years.

617
00:27:44,840 --> 00:27:46,080
Speaker 2: I think. But what I'm saying is, I think a

618
00:27:46,080 --> 00:27:47,120
Speaker 2: lot of times that have to do with the fact

619
00:27:47,119 --> 00:27:49,480
Speaker 2: that they haven't set aside a ton of money, which

620
00:27:49,480 --> 00:27:51,600
Speaker 2: means that they're drawing down less. So so much of

621
00:27:51,640 --> 00:27:54,800
Speaker 2: the behavioral aspect of it. How much are you investing

622
00:27:54,840 --> 00:27:56,320
Speaker 2: now and then how much are you going to draw

623
00:27:56,359 --> 00:27:59,120
Speaker 2: on that? Yeah, you're pointing to like the lived reality

624
00:27:59,240 --> 00:28:01,280
Speaker 2: of a lot of folks, which I totally agree with.

625
00:28:01,359 --> 00:28:02,200
Speaker 2: But it's definitely true.

626
00:28:02,240 --> 00:28:04,960
Speaker 1: You're right, Like, if you if you're an incredible saber

627
00:28:05,000 --> 00:28:07,720
Speaker 1: and investor, there's a chance there's a reasonable chance that

628
00:28:07,760 --> 00:28:09,480
Speaker 1: you're going to end up just as high of an

629
00:28:09,480 --> 00:28:12,840
Speaker 1: effective fact rate, if not higher, if you're like balling

630
00:28:12,880 --> 00:28:15,080
Speaker 1: out and saving a massively high percentage of what you

631
00:28:15,119 --> 00:28:15,439
Speaker 1: bring in.

632
00:28:15,560 --> 00:28:18,240
Speaker 2: I think there's a chance Ethan might fall into that count.

633
00:28:19,720 --> 00:28:24,200
Speaker 1: Based on two dumb, dumb and dumber references in one episode.

634
00:28:24,080 --> 00:28:26,479
Speaker 2: The frequency in which Joel talks about Jim Carrey folks

635
00:28:26,880 --> 00:28:28,800
Speaker 2: is hot just aside as you would expect.

636
00:28:28,800 --> 00:28:30,800
Speaker 1: He's still my hero. Yeah, when I was a kid,

637
00:28:30,800 --> 00:28:32,160
Speaker 1: that's why I wanted to be more than everybody else,

638
00:28:32,160 --> 00:28:34,440
Speaker 1: he told me. But the listeners didn't know that.

639
00:28:35,560 --> 00:28:36,040
Speaker 2: Yeah.

640
00:28:36,080 --> 00:28:38,719
Speaker 1: So the roth II rate traditional four one K combo

641
00:28:39,080 --> 00:28:41,320
Speaker 1: allows you, i'd say, to take the burden the hand

642
00:28:41,640 --> 00:28:44,800
Speaker 1: that's taken some future tax exposure off the table, while

643
00:28:44,840 --> 00:28:47,680
Speaker 1: also getting a current tax break on another chunk of

644
00:28:47,720 --> 00:28:51,400
Speaker 1: your retirement dollars. It also allows you to turn traditional

645
00:28:51,440 --> 00:28:55,800
Speaker 1: dollars into ROTH dollars down the road, so you retain flexibility. So,

646
00:28:56,080 --> 00:28:59,360
Speaker 1: for example, if you retire early as is as is

647
00:28:59,400 --> 00:29:02,360
Speaker 1: your goal ethan, the likelihood that you'll have a lower

648
00:29:02,400 --> 00:29:05,960
Speaker 1: income is quite high. You can then do roth conversions,

649
00:29:06,000 --> 00:29:09,480
Speaker 1: likely in a ladder form, to turn traditional dollars into

650
00:29:09,600 --> 00:29:12,200
Speaker 1: ROTH dollars at a far lower tax rate because you're

651
00:29:12,200 --> 00:29:14,400
Speaker 1: not bringing money in anymore. So one of the things

652
00:29:14,400 --> 00:29:17,920
Speaker 1: you can do is then you know, turn those traditional

653
00:29:17,960 --> 00:29:22,760
Speaker 1: dollars into roth dollars via a conversion. And having more

654
00:29:22,800 --> 00:29:24,880
Speaker 1: traditional dollars creates less certainty, which is one of the

655
00:29:24,920 --> 00:29:26,560
Speaker 1: things that you mentioned in your question. You like the

656
00:29:26,600 --> 00:29:29,680
Speaker 1: idea of that certainty, but it allows more of an

657
00:29:29,680 --> 00:29:32,720
Speaker 1: ability to reduce your overall tax exposure.

658
00:29:32,960 --> 00:29:35,200
Speaker 2: Yeah. Yeah, I will say, so you said something about

659
00:29:35,200 --> 00:29:39,760
Speaker 2: retiring early. I heard him say partially retiring, which I

660
00:29:39,760 --> 00:29:42,360
Speaker 2: guess is that technically the same thing retiring early in

661
00:29:42,400 --> 00:29:44,479
Speaker 2: the spectrum. It's not a spectrum, but I get when

662
00:29:44,520 --> 00:29:46,440
Speaker 2: I hear partial retiring, that tells me that he's still

663
00:29:46,480 --> 00:29:49,400
Speaker 2: planning to work, he's still planning to generate an income.

664
00:29:49,840 --> 00:29:53,600
Speaker 2: But I guess that's also similar to coast fire. There's

665
00:29:53,600 --> 00:29:56,800
Speaker 2: all varying degrees here, which actually so it makes me think.

666
00:29:56,880 --> 00:29:59,440
Speaker 2: One of the things he said, it almost sounded like

667
00:29:59,760 --> 00:30:05,440
Speaker 2: that getting this problem, like striking it perfectly, was what

668
00:30:05,560 --> 00:30:08,719
Speaker 2: was going to allow him to partially retire or to

669
00:30:08,760 --> 00:30:10,480
Speaker 2: not partially retire, he called it. He's just like, I

670
00:30:10,520 --> 00:30:13,320
Speaker 2: want to achieve the dream of partially retiring someday, but

671
00:30:13,360 --> 00:30:15,440
Speaker 2: I don't know, well, my taxes are going to be

672
00:30:15,840 --> 00:30:17,600
Speaker 2: and Ethan, I'm just here to let you know that

673
00:30:17,920 --> 00:30:19,880
Speaker 2: you don't have to nail it perfectly, like it is

674
00:30:20,000 --> 00:30:22,600
Speaker 2: very unlikely that you are going to be able to

675
00:30:22,680 --> 00:30:25,320
Speaker 2: hit it right on the nose, and you still can

676
00:30:25,440 --> 00:30:27,840
Speaker 2: partially retire off in the future. You still can coast

677
00:30:27,840 --> 00:30:30,240
Speaker 2: fire at some point in time. You're not going to

678
00:30:30,360 --> 00:30:32,160
Speaker 2: partially retire. I think there's a good chance you're going

679
00:30:32,200 --> 00:30:35,720
Speaker 2: to fully retire, And so I just want you to

680
00:30:35,720 --> 00:30:37,880
Speaker 2: take a little bit of pressure off this specific decision,

681
00:30:37,920 --> 00:30:39,960
Speaker 2: because there are so many other factors that play into

682
00:30:39,960 --> 00:30:43,440
Speaker 2: whether or not you can partially or fully retire than

683
00:30:43,880 --> 00:30:47,840
Speaker 2: nailing your tax rate here versus your tax rate later

684
00:30:47,920 --> 00:30:50,760
Speaker 2: down the road, finding the right mix of which tax

685
00:30:50,760 --> 00:30:54,000
Speaker 2: to pay, another perk by the way of having accounts

686
00:30:54,040 --> 00:30:56,480
Speaker 2: in that are post tax and pre tax. Having both

687
00:30:56,520 --> 00:30:59,120
Speaker 2: those to draw from is that you can kind of

688
00:30:59,160 --> 00:31:01,560
Speaker 2: create your own tax bracket in retirement based on which

689
00:31:01,560 --> 00:31:05,000
Speaker 2: account you draw from and win and how much. It's

690
00:31:05,040 --> 00:31:07,080
Speaker 2: like those Choose your own Adventure books, Matt. You remember

691
00:31:07,080 --> 00:31:08,440
Speaker 2: those when we were kids. Loved him.

692
00:31:08,480 --> 00:31:10,280
Speaker 1: That was pretty fun and you'd be like, oh, page,

693
00:31:10,320 --> 00:31:12,480
Speaker 1: turn to page sixty two, and then you're like, oh,

694
00:31:12,480 --> 00:31:14,520
Speaker 1: you just got killed by pirates. You're like, my adventure's over,

695
00:31:14,520 --> 00:31:18,280
Speaker 1: I guess, but hopefully that doesn't happen in Ethan's case.

696
00:31:18,320 --> 00:31:20,800
Speaker 1: But like, this allows you to kind of choose your

697
00:31:20,800 --> 00:31:23,040
Speaker 1: own tax rate. In years where you've got less income

698
00:31:23,080 --> 00:31:25,760
Speaker 1: coming in, you can tap those traditional accounts more heavily.

699
00:31:25,880 --> 00:31:28,320
Speaker 1: When the opposite is true, you can lean more on

700
00:31:28,360 --> 00:31:30,680
Speaker 1: your WROTH accounts, and then ultimately you know, for other

701
00:31:30,680 --> 00:31:33,479
Speaker 1: how to money listeners. This question is far easier if

702
00:31:33,520 --> 00:31:36,360
Speaker 1: you're in either the lowest or the highest tax bracket.

703
00:31:36,520 --> 00:31:39,080
Speaker 1: If you're just starting out incomes meager, the WROTH is

704
00:31:39,120 --> 00:31:41,280
Speaker 1: the way to go as you ramp up your income.

705
00:31:41,280 --> 00:31:44,200
Speaker 1: If you're in that like thirty two, thirty five, thirty

706
00:31:44,240 --> 00:31:47,600
Speaker 1: seven percent tax bracket, that's when the traditional makes even

707
00:31:47,800 --> 00:31:49,800
Speaker 1: more is even more appealing totally.

708
00:31:49,920 --> 00:31:51,920
Speaker 2: Yeah, Okay, So while you're talking about tax brackets, that

709
00:31:52,000 --> 00:31:54,640
Speaker 2: makes me think about the fact too that he's it

710
00:31:54,640 --> 00:31:57,800
Speaker 2: seems like he was also agonizing over like, well, I'm

711
00:31:57,800 --> 00:32:00,800
Speaker 2: in the twenty four percent. That's what he said, right,

712
00:32:00,840 --> 00:32:04,320
Speaker 2: twenty four percent, and should I go ahead and take

713
00:32:04,360 --> 00:32:07,160
Speaker 2: the break now by going with pre tax to avoid

714
00:32:07,160 --> 00:32:10,840
Speaker 2: paying tax on that now? But just the way he

715
00:32:10,920 --> 00:32:12,680
Speaker 2: was talking about it makes me think that there might

716
00:32:12,720 --> 00:32:15,080
Speaker 2: be a slight chance that he's a little bit confused

717
00:32:15,080 --> 00:32:18,480
Speaker 2: between marginal tax rate and effective tax rate. And you're

718
00:32:18,520 --> 00:32:21,240
Speaker 2: only tax at that twenty four percent on dollars above

719
00:32:21,280 --> 00:32:24,880
Speaker 2: that like two hundred and five thousand dollars threshold. Everything

720
00:32:24,920 --> 00:32:27,640
Speaker 2: below that is taxed at twenty two percent. That's for

721
00:32:27,760 --> 00:32:33,600
Speaker 2: couple or verifying jointly or less, And don't I don't

722
00:32:33,640 --> 00:32:36,160
Speaker 2: know going from twenty two to twenty four Like, trust me,

723
00:32:36,200 --> 00:32:38,080
Speaker 2: I don't like paying taxes. But that's not too bad.

724
00:32:38,600 --> 00:32:41,480
Speaker 2: There's a much bigger difference, I would say between jumping

725
00:32:41,520 --> 00:32:44,600
Speaker 2: from that twenty four percent bracket up to thirty two percent.

726
00:32:45,760 --> 00:32:48,840
Speaker 2: I would most definitely be looking to maybe optimize ways

727
00:32:48,880 --> 00:32:51,680
Speaker 2: to not pay that jump and tax, but just keep

728
00:32:51,720 --> 00:32:54,000
Speaker 2: that in mind too, that if you got two hundred

729
00:32:54,000 --> 00:32:58,040
Speaker 2: thirty thousand dollars, like you're paying an additional two percent

730
00:32:58,360 --> 00:33:01,440
Speaker 2: on maybe twenty five thousand dollars as opposed to that

731
00:33:01,440 --> 00:33:04,040
Speaker 2: if let's say you're earning three hundred and fifty k Okay,

732
00:33:04,120 --> 00:33:05,960
Speaker 2: I hear where you're coming from. That's a lot, that's

733
00:33:05,960 --> 00:33:08,920
Speaker 2: a lot more. You're paying two percent more on many

734
00:33:08,960 --> 00:33:11,960
Speaker 2: more dollars. But just wanted to highlight that and just

735
00:33:12,000 --> 00:33:13,760
Speaker 2: point that out as well. I think your head's in

736
00:33:13,800 --> 00:33:16,360
Speaker 2: the right place and get informed now, and I think

737
00:33:16,400 --> 00:33:18,800
Speaker 2: that can continue to help you to make wise decisions,

738
00:33:18,920 --> 00:33:21,840
Speaker 2: especially if you are expecting to continue to increase your

739
00:33:21,840 --> 00:33:24,680
Speaker 2: earning where you you know where you are looking at

740
00:33:24,720 --> 00:33:27,200
Speaker 2: potentially entering into that thirty two percent bracket, because that's

741
00:33:27,200 --> 00:33:29,120
Speaker 2: when it that's when it really is going to start

742
00:33:29,120 --> 00:33:29,400
Speaker 2: to hurt.

743
00:33:29,400 --> 00:33:33,080
Speaker 1: And like Friends of the Show Sean Malaney Cody Garrett say, Matt,

744
00:33:33,080 --> 00:33:37,120
Speaker 1: they're all about reducing your overall lifetime taxation. And so

745
00:33:37,200 --> 00:33:39,720
Speaker 1: that's really the way you want to think about this

746
00:33:39,800 --> 00:33:42,240
Speaker 1: from a strategic perspective. And while it might be painful

747
00:33:42,640 --> 00:33:47,120
Speaker 1: to pay twenty two to twenty four percent marginal tax rate,

748
00:33:47,480 --> 00:33:50,320
Speaker 1: you might also realize, well, when you step back and

749
00:33:50,320 --> 00:33:53,640
Speaker 1: look at things, what is that in the spectrum of

750
00:33:53,680 --> 00:33:55,840
Speaker 1: your likely tax rate for your entire life. That's kind

751
00:33:55,840 --> 00:33:57,360
Speaker 1: of the question. You want to ask a big picture

752
00:33:57,400 --> 00:33:59,600
Speaker 1: so that you can maximize those decisions, not trying to

753
00:33:59,640 --> 00:34:03,320
Speaker 1: just say that little extra bit of tax now when

754
00:34:03,680 --> 00:34:05,640
Speaker 1: it's going to set you up for a bigger tax

755
00:34:05,640 --> 00:34:06,280
Speaker 1: bill in the future.

756
00:34:06,320 --> 00:34:09,120
Speaker 2: Yeah, that's right. One other, okay, one final quick note.

757
00:34:09,239 --> 00:34:12,640
Speaker 2: Keep in mind that you are effectively investing more dollars

758
00:34:13,360 --> 00:34:16,319
Speaker 2: by putting money into a wrath as opposed to a

759
00:34:16,360 --> 00:34:19,440
Speaker 2: traditional because on a traditional you still have taxes to

760
00:34:19,480 --> 00:34:22,600
Speaker 2: pay out of that, and with a roth you are

761
00:34:22,800 --> 00:34:25,839
Speaker 2: essentially frontloading that pain, that sacrifice. So when you are

762
00:34:25,840 --> 00:34:29,160
Speaker 2: maxing out both accounts, you are effectively investing more dollars

763
00:34:29,640 --> 00:34:31,560
Speaker 2: when the time comes for you to actually draw down

764
00:34:31,600 --> 00:34:34,520
Speaker 2: on that. So there's this behavioral actually richer, Yes, at

765
00:34:34,560 --> 00:34:36,240
Speaker 2: the end of the day, you will be richer because

766
00:34:37,480 --> 00:34:39,680
Speaker 2: traditional ethan down the road is going to have to

767
00:34:39,680 --> 00:34:42,440
Speaker 2: pay more in taxes, whereas roth Ethan is just like

768
00:34:42,840 --> 00:34:45,680
Speaker 2: all that money is mine baby. Yeah, So it's weird, like, yeah,

769
00:34:45,880 --> 00:34:48,880
Speaker 2: that kind of behavioral side effect of maxing out of

770
00:34:48,960 --> 00:34:51,680
Speaker 2: roth ira versus a traditional ira. You're just going to

771
00:34:51,719 --> 00:34:53,719
Speaker 2: come out ahead in the roth ira if you're a

772
00:34:53,760 --> 00:34:54,160
Speaker 2: max saver.

773
00:34:54,400 --> 00:34:55,160
Speaker 1: That's right, Joe.

774
00:34:55,239 --> 00:34:57,239
Speaker 2: Let's hear from a listener who is looking to use

775
00:34:57,360 --> 00:35:02,480
Speaker 2: a sophisticated giving account to benefit an organization that is

776
00:35:02,760 --> 00:35:06,879
Speaker 2: less interested in the technologies I met in Joel.

777
00:35:06,920 --> 00:35:09,719
Speaker 5: This is Mary from South Carolina. All of your talk

778
00:35:09,719 --> 00:35:13,799
Speaker 5: about donor advised funds lately got me to thinking. We

779
00:35:13,840 --> 00:35:16,080
Speaker 5: go to a very small church and the only way

780
00:35:16,120 --> 00:35:19,880
Speaker 5: they take donations is cash and check. So I find

781
00:35:19,880 --> 00:35:25,040
Speaker 5: myself in twenty twenty five writing about twelve checks per year.

782
00:35:25,560 --> 00:35:28,360
Speaker 5: I implicitly trust the people who handle the money, but

783
00:35:28,400 --> 00:35:31,239
Speaker 5: occasionally I have to mail a check, and that's pretty terrifying.

784
00:35:31,920 --> 00:35:34,800
Speaker 5: Do you think that a donor advised fund would be

785
00:35:34,840 --> 00:35:38,920
Speaker 5: able to distribute money to a really small organization like that?

786
00:35:39,600 --> 00:35:41,879
Speaker 5: Or does it have to be a bigger charity? Thank

787
00:35:41,920 --> 00:35:43,479
Speaker 5: you so much?

788
00:35:43,880 --> 00:35:46,600
Speaker 1: Ooh Matt using a check? I don't think. I can't

789
00:35:46,600 --> 00:35:47,799
Speaker 1: tell you the last time I wrote a check?

790
00:35:48,040 --> 00:35:51,720
Speaker 2: You remember yours? I?

791
00:35:51,800 --> 00:35:54,880
Speaker 1: No, Yeah, it's hard man like I can think of.

792
00:35:54,920 --> 00:35:56,680
Speaker 2: I mean, I know I cut some checks when we

793
00:35:56,719 --> 00:35:59,920
Speaker 2: were doing some work at the house for sure, because

794
00:36:00,560 --> 00:36:03,959
Speaker 2: that's yeah, not really zelling large sums like that around.

795
00:36:04,000 --> 00:36:05,839
Speaker 1: Yeah let zell use sixty thousand dollars to a.

796
00:36:05,840 --> 00:36:08,560
Speaker 2: General contractor well yeah, less So in that.

797
00:36:08,480 --> 00:36:11,360
Speaker 1: Case, I feel like maybe five six years ago, it

798
00:36:11,480 --> 00:36:14,000
Speaker 1: used to be a little bit more necessary on occasion,

799
00:36:14,040 --> 00:36:16,560
Speaker 1: but I feel like checks are mostly a blasted in

800
00:36:16,560 --> 00:36:20,920
Speaker 1: the past, and they're also becoming problematic right in some

801
00:36:20,960 --> 00:36:24,680
Speaker 1: ways from a theft standpoint, I think they're going the

802
00:36:24,680 --> 00:36:27,520
Speaker 1: way of the Dodo burden. So if I don't know,

803
00:36:27,600 --> 00:36:28,960
Speaker 1: they're kind of like the new version of the fax

804
00:36:29,040 --> 00:36:33,080
Speaker 1: machine in my estimation, and I just get I feel

805
00:36:33,120 --> 00:36:38,280
Speaker 1: a little uncomfortable writing checks, and so yeah, I feel

806
00:36:38,560 --> 00:36:41,080
Speaker 1: Mary's pain, like, yeah, I don't want to be writing

807
00:36:41,160 --> 00:36:42,279
Speaker 1: a check to my church either.

808
00:36:42,680 --> 00:36:45,799
Speaker 2: This is also a longtime listener, Mary, who we were

809
00:36:45,800 --> 00:36:49,640
Speaker 2: talking about corresponding with listeners earlier on, and we correspond

810
00:36:49,680 --> 00:36:51,399
Speaker 2: a good bit with Mary. Mary. Mary's got a great

811
00:36:51,440 --> 00:36:53,480
Speaker 2: heart and does a lot for folks out there who

812
00:36:53,520 --> 00:36:57,440
Speaker 2: are trying to better their personal finance situation. And Mary,

813
00:36:57,680 --> 00:37:00,880
Speaker 2: I promise we'll get to donor advise funds specifically here

814
00:37:00,920 --> 00:37:03,759
Speaker 2: in a second. But it's worth pointing out that there

815
00:37:03,760 --> 00:37:08,080
Speaker 2: are some online donation platforms for churches now like Tithely

816
00:37:08,560 --> 00:37:13,040
Speaker 2: and give the Fi, which, of course great names you

817
00:37:13,120 --> 00:37:16,520
Speaker 2: got like these like web three point zero names for

818
00:37:16,880 --> 00:37:21,480
Speaker 2: like these old like traditional sounding actions. But I think

819
00:37:21,480 --> 00:37:24,280
Speaker 2: these can be better options for a lot of smaller

820
00:37:24,360 --> 00:37:27,560
Speaker 2: churches and organizations out there, because the reason your church

821
00:37:27,800 --> 00:37:30,000
Speaker 2: might be avoiding those is because they come with a

822
00:37:30,040 --> 00:37:33,680
Speaker 2: payment fee, so that's the downside. Obviously taking a check

823
00:37:33,680 --> 00:37:36,120
Speaker 2: doesn't cost them a dying, but still it's like, it

824
00:37:36,160 --> 00:37:37,840
Speaker 2: makes me think of Aldi right where they used to

825
00:37:37,880 --> 00:37:40,280
Speaker 2: not take credit cards, which used to drive me crazy

826
00:37:40,880 --> 00:37:44,640
Speaker 2: because that's the only reason I had my Ally check

827
00:37:44,680 --> 00:37:47,360
Speaker 2: card in my wallet was for this one particular story.

828
00:37:47,360 --> 00:37:49,320
Speaker 1: We all understood it because we were like, the reason

829
00:37:49,360 --> 00:37:53,160
Speaker 1: all these is doing this because they're making sure we

830
00:37:53,200 --> 00:37:54,480
Speaker 1: save the most money, that's right.

831
00:37:54,680 --> 00:37:57,160
Speaker 2: But that being said, they did start to take them,

832
00:37:57,360 --> 00:38:00,319
Speaker 2: and I think it's because they saw that the like

833
00:38:00,360 --> 00:38:03,759
Speaker 2: the pros of taking it outweighed the cons which for

834
00:38:03,800 --> 00:38:07,320
Speaker 2: them was the expense they were seeing abandoned cars. They

835
00:38:07,360 --> 00:38:09,359
Speaker 2: figured it was worth taking the payment method that most

836
00:38:09,360 --> 00:38:12,640
Speaker 2: folks are going to prefer. And it's a little awkward

837
00:38:12,680 --> 00:38:14,040
Speaker 2: here too, because it's kind of weird to think that

838
00:38:14,080 --> 00:38:17,040
Speaker 2: there might be people who won't give to their church

839
00:38:17,120 --> 00:38:19,799
Speaker 2: for that reason, right, because it's not easy, because it's

840
00:38:19,800 --> 00:38:23,680
Speaker 2: not convenient. But not taking credit cards or not taking

841
00:38:23,719 --> 00:38:28,440
Speaker 2: ah could actually inhibit giving for an organization, especially when

842
00:38:28,480 --> 00:38:31,200
Speaker 2: younger folks in particular don't have or don't use checks

843
00:38:31,239 --> 00:38:34,800
Speaker 2: at all. It's just it's making the kinds of actions

844
00:38:34,800 --> 00:38:37,160
Speaker 2: that you want to see more of easier. And retailers

845
00:38:37,160 --> 00:38:39,319
Speaker 2: do this all the time when it comes to being

846
00:38:39,400 --> 00:38:42,759
Speaker 2: parted with your dollars for goods that you may or

847
00:38:42,800 --> 00:38:46,200
Speaker 2: may not need. Yeah, So it's just something for churches

848
00:38:46,200 --> 00:38:48,440
Speaker 2: and organizations to keep in mind, dude.

849
00:38:48,600 --> 00:38:51,239
Speaker 1: So it's like a cell phone to not take any

850
00:38:51,239 --> 00:38:52,240
Speaker 1: form of payment beyond.

851
00:38:52,080 --> 00:38:54,359
Speaker 2: Cash and checks at this point in time, Yeah it is. Yeah.

852
00:38:54,400 --> 00:38:58,759
Speaker 2: So Christmas is later this week makes me think about

853
00:38:57,480 --> 00:39:00,760
Speaker 2: I found myself on my phone look for a gift

854
00:39:00,960 --> 00:39:03,680
Speaker 2: for Kate, and I had already done the research, so

855
00:39:03,719 --> 00:39:06,239
Speaker 2: I kind of knew that, like, Okay, this is this

856
00:39:06,280 --> 00:39:07,719
Speaker 2: is I'm going to buy it from here. I didn't

857
00:39:07,719 --> 00:39:09,479
Speaker 2: need to shop around anymore. I'm kind of old school

858
00:39:09,480 --> 00:39:11,480
Speaker 2: when I when I like to shop, I like being

859
00:39:11,480 --> 00:39:13,880
Speaker 2: on the computer so I can click open tabs search

860
00:39:13,960 --> 00:39:16,040
Speaker 2: more easily, you know, do all the research. I had

861
00:39:16,080 --> 00:39:17,799
Speaker 2: already done all that, and so I was just like, Okay,

862
00:39:17,800 --> 00:39:21,240
Speaker 2: it's just time to actually make this purchase. I could

863
00:39:21,239 --> 00:39:25,320
Speaker 2: not believe how easy they make it to pay. I

864
00:39:25,360 --> 00:39:27,520
Speaker 2: guess it's not the retailer, it's not the website, but

865
00:39:27,560 --> 00:39:30,080
Speaker 2: it's Apple Pay as well. It's the integration with Apple Pay,

866
00:39:30,160 --> 00:39:33,040
Speaker 2: and I just selected that. Dude, I bought that thing

867
00:39:33,040 --> 00:39:35,799
Speaker 2: before I even realized. I mean, I knew I wanted it,

868
00:39:36,239 --> 00:39:38,759
Speaker 2: but truly they I mean, because it's Apple Pay, they

869
00:39:38,760 --> 00:39:40,680
Speaker 2: already have your address there, they have the right card

870
00:39:40,719 --> 00:39:42,360
Speaker 2: because I use that for other things. I just double

871
00:39:42,360 --> 00:39:45,319
Speaker 2: click that thing and I was good to go. That

872
00:39:45,480 --> 00:39:47,960
Speaker 2: sale happened because they made it easy for me. Yeah,

873
00:39:48,000 --> 00:39:50,839
Speaker 2: and I think if other churches and organizations can keep

874
00:39:50,880 --> 00:39:52,560
Speaker 2: that in mind, I think they like, Yeah, they might

875
00:39:52,600 --> 00:39:54,320
Speaker 2: see increased levels of giving.

876
00:39:54,360 --> 00:39:57,520
Speaker 1: I agreed the suck about donor ice ones as well.

877
00:39:57,560 --> 00:40:00,239
Speaker 1: That was the heart of Mary's questions actual question. Yeah,

878
00:40:00,239 --> 00:40:02,040
Speaker 1: they're not as common as folks wanting to pay from

879
00:40:02,080 --> 00:40:03,960
Speaker 1: their bank account, I don't think, but it would still

880
00:40:04,000 --> 00:40:06,759
Speaker 1: make sense for a church to welcome those two. It

881
00:40:06,760 --> 00:40:09,640
Speaker 1: could lead to more donations rolling in. That's partly because

882
00:40:09,640 --> 00:40:12,160
Speaker 1: people with donor avice funds often have larger sums of

883
00:40:12,239 --> 00:40:14,400
Speaker 1: money they're willing to give. And so you're like, no,

884
00:40:14,480 --> 00:40:19,080
Speaker 1: we don't take donor advice on money. Well, okay, you're

885
00:40:19,160 --> 00:40:22,040
Speaker 1: becoming your own worst enemy. And so donor avice funds,

886
00:40:22,080 --> 00:40:24,640
Speaker 1: they can, and they do make it fairly easy for

887
00:40:24,800 --> 00:40:27,319
Speaker 1: organizations of all sizes to accept money. So your church

888
00:40:27,360 --> 00:40:30,880
Speaker 1: can easily get in on this, get in on your

889
00:40:31,440 --> 00:40:33,920
Speaker 1: giving from your donor advice fund. They just have to

890
00:40:33,960 --> 00:40:36,040
Speaker 1: be a registered five oh one C three and they

891
00:40:36,080 --> 00:40:39,640
Speaker 1: can by default except donor advice fund money. The donor,

892
00:40:39,760 --> 00:40:42,680
Speaker 1: which is you can recommend a donation to your church

893
00:40:43,160 --> 00:40:46,920
Speaker 1: from your donor advice fund, and then your donor advice

894
00:40:46,960 --> 00:40:50,839
Speaker 1: fund sponsor, which is usually paying Guard Fidelity Daffy, can

895
00:40:50,880 --> 00:40:54,320
Speaker 1: even send a physical check, so since your church likes checks,

896
00:40:54,640 --> 00:40:58,279
Speaker 1: this allows you to give via your preferred method and

897
00:40:58,320 --> 00:41:01,320
Speaker 1: then for them to receive in there when win baby.

898
00:41:01,320 --> 00:41:04,080
Speaker 1: I think the donor vice one might be the best

899
00:41:04,480 --> 00:41:06,400
Speaker 1: best thing going right now for your church and for

900
00:41:06,520 --> 00:41:08,600
Speaker 1: your You have this overlap of interest.

901
00:41:09,040 --> 00:41:11,160
Speaker 2: So I give to the kids school and we do

902
00:41:11,200 --> 00:41:13,879
Speaker 2: that via our donor advised fund and I specifically wanted

903
00:41:14,040 --> 00:41:17,000
Speaker 2: wanted to know how it arrived. But I think that

904
00:41:17,239 --> 00:41:19,759
Speaker 2: maybe I'm getting ahead of myself here. I don't think

905
00:41:19,760 --> 00:41:22,120
Speaker 2: it was listed originally and I think I entered it

906
00:41:22,160 --> 00:41:24,440
Speaker 2: in and so that's actually something that you can do,

907
00:41:24,480 --> 00:41:28,400
Speaker 2: Mary specifically, we'll get to that part. Let's say that

908
00:41:28,480 --> 00:41:30,960
Speaker 2: your church is not listed when you are attempting to

909
00:41:30,960 --> 00:41:34,280
Speaker 2: make a donation, and if you are using our favorite

910
00:41:34,320 --> 00:41:39,319
Speaker 2: donor advised fund site, Daffy, they allow you as a

911
00:41:39,360 --> 00:41:43,319
Speaker 2: member to request that the nonprofit be added. And so

912
00:41:43,800 --> 00:41:46,760
Speaker 2: all you gotta do is just submit the nonprofits tax

913
00:41:46,840 --> 00:41:50,480
Speaker 2: I D, their EI N number, their mailing address and

914
00:41:50,560 --> 00:41:54,720
Speaker 2: some other basic details via daffi's request a charity form

915
00:41:55,200 --> 00:41:57,680
Speaker 2: and boom, that's it. It's pretty simple, and then they'll

916
00:41:57,920 --> 00:42:00,520
Speaker 2: get added. I think I actually did that with the

917
00:42:00,600 --> 00:42:03,640
Speaker 2: kids school. I don't exactly remember, but I do know

918
00:42:03,680 --> 00:42:06,120
Speaker 2: that they receive the paper check because I wanted to

919
00:42:06,160 --> 00:42:07,680
Speaker 2: make sure that they were receiving it, and I was

920
00:42:07,719 --> 00:42:09,399
Speaker 2: just like, hey, do you mind checking to see if

921
00:42:10,360 --> 00:42:13,040
Speaker 2: this is early on in our DAFU days. And I'll

922
00:42:13,040 --> 00:42:14,640
Speaker 2: be honest, Jill, I didn't know if I trusted it,

923
00:42:15,239 --> 00:42:17,080
Speaker 2: and I wanted to know what it was like, I

924
00:42:17,200 --> 00:42:19,520
Speaker 2: was going to show up and as far as I know,

925
00:42:19,600 --> 00:42:22,400
Speaker 2: they are still cutting a check and it's being mailed

926
00:42:22,400 --> 00:42:23,680
Speaker 2: there to this day.

927
00:42:23,760 --> 00:42:24,480
Speaker 1: So that's cool.

928
00:42:24,560 --> 00:42:26,759
Speaker 2: Yeah, I think it's It's just fun because we have

929
00:42:26,800 --> 00:42:29,680
Speaker 2: a great solution for Mary because that satisfies exactly what

930
00:42:29,719 --> 00:42:32,120
Speaker 2: she wants to do and also what the church wants

931
00:42:32,160 --> 00:42:33,080
Speaker 2: to continue to do.

932
00:42:33,360 --> 00:42:35,439
Speaker 1: Yeah. Yeah, the church doesn't have to go through some

933
00:42:35,640 --> 00:42:39,040
Speaker 1: fancy rigam role in order to accept donor of ice

934
00:42:39,080 --> 00:42:43,239
Speaker 1: Fund money just because they are a nonprofit five oh

935
00:42:43,239 --> 00:42:46,600
Speaker 1: one C three they can and you can give to

936
00:42:46,600 --> 00:42:48,360
Speaker 1: them from your donor a vice one. So it should

937
00:42:48,400 --> 00:42:52,479
Speaker 1: be pretty easy, pretty chill, make it happen, and maybe

938
00:42:52,480 --> 00:42:55,480
Speaker 1: your church can still stay in that luddite status of

939
00:42:55,719 --> 00:42:58,920
Speaker 1: not accepting ah in credit cards, which is fine, but

940
00:42:59,000 --> 00:43:01,080
Speaker 1: you could still get to what you want to do. Yep.

941
00:43:01,120 --> 00:43:04,800
Speaker 1: All right, Sorry not to throw shade, just saying we

942
00:43:04,840 --> 00:43:07,120
Speaker 1: got more questions to get to, including what do you

943
00:43:07,120 --> 00:43:09,160
Speaker 1: do with your four O on K when you're changing jobs?

944
00:43:09,239 --> 00:43:20,160
Speaker 1: Talk about that and more. Right after this, we are back.

945
00:43:19,960 --> 00:43:21,759
Speaker 2: From the break buddy, and it is now time for

946
00:43:21,840 --> 00:43:25,320
Speaker 2: the Facebook Question of the Week, which is from Paul,

947
00:43:25,920 --> 00:43:28,920
Speaker 2: who writes, we happen to be in a good spot

948
00:43:28,960 --> 00:43:31,200
Speaker 2: with our home mortgage interest rate with a rate of

949
00:43:31,239 --> 00:43:32,799
Speaker 2: three and a half percent, is it better for me

950
00:43:32,880 --> 00:43:35,760
Speaker 2: to just make the minimum payment and put whatever extra

951
00:43:35,880 --> 00:43:38,839
Speaker 2: we have into roth Ira or our four oh one k.

952
00:43:39,360 --> 00:43:41,960
Speaker 2: We have been paying extra into the mortgage to equal

953
00:43:41,960 --> 00:43:44,719
Speaker 2: an extra payment a year in order to lower the

954
00:43:44,760 --> 00:43:46,960
Speaker 2: life of the loan. But with a lower interest rate,

955
00:43:46,960 --> 00:43:49,960
Speaker 2: the money should perform better in a retirement vehicle, or

956
00:43:50,000 --> 00:43:52,960
Speaker 2: at least I feel it would thoughts.

957
00:43:53,239 --> 00:43:54,680
Speaker 1: I agree.

958
00:43:55,800 --> 00:43:58,239
Speaker 2: I also I want to say, I know it will,

959
00:43:58,239 --> 00:44:00,759
Speaker 2: but you can't become us that because we don't know

960
00:44:00,800 --> 00:44:04,279
Speaker 2: the future. But yeah, Paul, I would not be making

961
00:44:04,280 --> 00:44:04,960
Speaker 2: these extra payments.

962
00:44:04,960 --> 00:44:06,959
Speaker 1: There's a bird in the hand of paying down debt,

963
00:44:06,960 --> 00:44:08,839
Speaker 1: and usually I mean, so much of this comes down

964
00:44:08,880 --> 00:44:10,359
Speaker 1: to what kind of debt and what the interest rate

965
00:44:10,400 --> 00:44:12,279
Speaker 1: is right, Because if it's if he had said, I've

966
00:44:12,320 --> 00:44:16,520
Speaker 1: got this payday loan with an annual interest rate of

967
00:44:16,600 --> 00:44:18,839
Speaker 1: three hundred and sixty percent, what should I do? I mean,

968
00:44:18,920 --> 00:44:20,560
Speaker 1: the clear answer is get rid of that thing as

969
00:44:20,600 --> 00:44:23,880
Speaker 1: soon as possible, and you know, you can get back

970
00:44:23,880 --> 00:44:25,960
Speaker 1: to your roth Ira later on down the line. But

971
00:44:25,960 --> 00:44:30,439
Speaker 1: we're talking about baked in incredibly low mortgage rate, and

972
00:44:30,600 --> 00:44:34,239
Speaker 1: so for us paying it off, his agreed makes the

973
00:44:34,239 --> 00:44:36,640
Speaker 1: most sense not making any additional payments to try and

974
00:44:36,640 --> 00:44:40,759
Speaker 1: get rid of it faster, and Matt we honestly, I

975
00:44:40,800 --> 00:44:42,920
Speaker 1: always want to call like a three percent mortgage like

976
00:44:42,920 --> 00:44:44,040
Speaker 1: an asset. I know it's not.

977
00:44:44,200 --> 00:44:48,560
Speaker 2: It's it's a liability right on your on your technical

978
00:44:48,600 --> 00:44:49,400
Speaker 2: accounting terms.

979
00:44:49,480 --> 00:44:51,919
Speaker 1: Yeah, like on your net worth statement, like it would

980
00:44:51,920 --> 00:44:52,839
Speaker 1: be counted as that.

981
00:44:52,960 --> 00:44:54,080
Speaker 2: But it feels so good.

982
00:44:54,120 --> 00:44:56,000
Speaker 1: But when you can earn more or just as much

983
00:44:56,080 --> 00:44:58,359
Speaker 1: in a high held savings account, you're taking zero risk,

984
00:44:58,440 --> 00:45:01,160
Speaker 1: like you always, you're keeping that optioninality to pay it

985
00:45:01,200 --> 00:45:04,120
Speaker 1: off at a quicker clip if rates, let's say, fall

986
00:45:04,160 --> 00:45:07,640
Speaker 1: significantly down the line. I just don't see any reason

987
00:45:07,840 --> 00:45:11,479
Speaker 1: to accelerate mortgage payoff. Investing in the accounts that Paul

988
00:45:11,520 --> 00:45:13,680
Speaker 1: mentioned is a far better option, that's right.

989
00:45:13,880 --> 00:45:17,040
Speaker 2: Yeah, Paul, You're you're also not asking about putting less

990
00:45:17,360 --> 00:45:19,480
Speaker 2: towards your mortgage so that you can up your spending,

991
00:45:19,600 --> 00:45:22,560
Speaker 2: right like you are trying to proactively do something positive here.

992
00:45:22,600 --> 00:45:25,560
Speaker 2: You're trying to invest more for your future, and the

993
00:45:25,640 --> 00:45:28,360
Speaker 2: multi decade reality shows that you're going to be richer

994
00:45:28,600 --> 00:45:31,840
Speaker 2: to the tune of hundreds of thousands of dollars by

995
00:45:31,880 --> 00:45:35,400
Speaker 2: investing these dollars instead of opting to pay your mortgage

996
00:45:35,400 --> 00:45:38,640
Speaker 2: off and so, and this is based on historical data. Again,

997
00:45:38,840 --> 00:45:40,919
Speaker 2: this is what I was referring to. You're talking about

998
00:45:41,040 --> 00:45:45,319
Speaker 2: HYGYLD savings coounctrol, which is more guaranteed. Uh, it's guaranteed.

999
00:45:45,680 --> 00:45:48,239
Speaker 2: It's like it's guaranteed to work six like sixty percent

1000
00:45:48,280 --> 00:45:50,759
Speaker 2: of the time or one hundred percent of the time. Right, Like,

1001
00:45:51,000 --> 00:45:54,360
Speaker 2: while those rates are sticking around, Yes, you can count

1002
00:45:54,440 --> 00:45:57,560
Speaker 2: on the rate of return there, but what are those

1003
00:45:57,640 --> 00:45:58,319
Speaker 2: rates going to do?

1004
00:45:58,480 --> 00:46:00,879
Speaker 1: I guess what I'm highlighting there is just that it's

1005
00:46:00,920 --> 00:46:04,200
Speaker 1: a zero risk, zero risk, right, and you can do

1006
00:46:04,280 --> 00:46:06,919
Speaker 1: even better by taking on that risk. Just No, it's

1007
00:46:07,040 --> 00:46:09,800
Speaker 1: not guaranteed, but it's nice to have that guaranteed ability

1008
00:46:09,800 --> 00:46:12,000
Speaker 1: to outpace it at least for the near term, at

1009
00:46:12,080 --> 00:46:12,560
Speaker 1: least right now.

1010
00:46:12,560 --> 00:46:16,280
Speaker 2: But when it comes to investing, it's the returns even higher,

1011
00:46:16,920 --> 00:46:20,960
Speaker 2: and it's for decades and hundreds of years. But that's

1012
00:46:21,000 --> 00:46:23,879
Speaker 2: not guaranteed either. Who's living hundreds of years by the way,

1013
00:46:24,040 --> 00:46:26,480
Speaker 2: Well he's not. But I would say max out that

1014
00:46:26,560 --> 00:46:28,839
Speaker 2: roth contribute more to your four one K and then

1015
00:46:28,920 --> 00:46:31,640
Speaker 2: just enjoy this three and a half percent mortgage that

1016
00:46:32,160 --> 00:46:35,640
Speaker 2: I would consider even calling a gift at this point

1017
00:46:35,640 --> 00:46:36,160
Speaker 2: in time.

1018
00:46:36,160 --> 00:46:37,799
Speaker 1: This time of year, we'll call it a gift. Yeah,

1019
00:46:38,080 --> 00:46:40,000
Speaker 1: let's give to another question. This one comes from Esra

1020
00:46:40,680 --> 00:46:42,799
Speaker 1: and she said, I'm curious as to what others have

1021
00:46:42,880 --> 00:46:44,480
Speaker 1: chosen to do with their four on and K when

1022
00:46:44,520 --> 00:46:46,880
Speaker 1: leaving a job. Have you a just kept it with

1023
00:46:46,920 --> 00:46:49,560
Speaker 1: your old employer, b roll it into an IRA, or

1024
00:46:49,640 --> 00:46:52,719
Speaker 1: c roll it into your new jobs four and K? Matt,

1025
00:46:52,760 --> 00:46:54,839
Speaker 1: this feels like a who wants to be a millionaire? Question?

1026
00:46:54,880 --> 00:46:57,239
Speaker 1: Do you remember that with Regis fillb In. It's a

1027
00:46:57,239 --> 00:46:59,960
Speaker 1: classic show. I saw it on TV rerun the other

1028
00:47:00,120 --> 00:47:02,480
Speaker 1: day and I don't know remember where I was, but

1029
00:47:02,520 --> 00:47:03,960
Speaker 1: I was like, I think maybe I was in like

1030
00:47:04,040 --> 00:47:07,160
Speaker 1: a mechanic shop or something. On the background we got

1031
00:47:07,160 --> 00:47:08,520
Speaker 1: the SAME's Club. It's like, man, I wanted to play

1032
00:47:08,520 --> 00:47:10,080
Speaker 1: that game so desperately back in the day.

1033
00:47:10,520 --> 00:47:11,920
Speaker 2: I think I'm just distracted by the fact that you

1034
00:47:11,960 --> 00:47:16,000
Speaker 2: said Ezra Esra versus Ezra, which my son's name. Yeah,

1035
00:47:16,040 --> 00:47:18,680
Speaker 2: but she just spells it with an S instead of

1036
00:47:18,680 --> 00:47:20,480
Speaker 2: a Z. Yeah, so you can just say Ezra.

1037
00:47:21,480 --> 00:47:26,400
Speaker 1: I guess I'm gonna say extra, okay, Ezra, for you

1038
00:47:26,520 --> 00:47:31,320
Speaker 1: don't cash out your retirement plan upon leaving your old employer.

1039
00:47:32,040 --> 00:47:35,520
Speaker 2: And this is like a principal thing here for sure, right,

1040
00:47:35,520 --> 00:47:37,760
Speaker 2: because even if we're talking about a small amount of money,

1041
00:47:38,360 --> 00:47:40,560
Speaker 2: like obviously the tax hit is going to seem small,

1042
00:47:40,800 --> 00:47:43,919
Speaker 2: but it's going to take a pretty decent chunk out

1043
00:47:43,920 --> 00:47:46,719
Speaker 2: of your the future compounding returns that you are no

1044
00:47:46,760 --> 00:47:49,080
Speaker 2: longer going to experience. Right, we're talking about your future

1045
00:47:49,080 --> 00:47:54,399
Speaker 2: retirement nest egg. But guess what, Joel Ezra is didn't

1046
00:47:54,400 --> 00:47:57,800
Speaker 2: even put that out there as an option. She's She's like, Okay, no,

1047
00:47:57,960 --> 00:48:00,160
Speaker 2: I'm gonna I'm trying to do the smart Yeah here, well,

1048
00:48:00,160 --> 00:48:02,759
Speaker 2: I believe I can't believe even put that on the

1049
00:48:03,160 --> 00:48:04,799
Speaker 2: table of options here before me, guys.

1050
00:48:04,880 --> 00:48:07,000
Speaker 1: Of course, yeah, she was mentioning it for everyone else.

1051
00:48:07,040 --> 00:48:09,480
Speaker 1: We know Esra would not do that, Matt, And so

1052
00:48:09,719 --> 00:48:11,880
Speaker 1: I think any of these options can make sense that

1053
00:48:11,960 --> 00:48:15,160
Speaker 1: she mentioned, right, Which is best depends on your individual circumstance.

1054
00:48:15,440 --> 00:48:17,240
Speaker 1: Keeping it with your old employer can be a solid

1055
00:48:17,239 --> 00:48:20,560
Speaker 1: option if they're with one of our favorite low cost providers,

1056
00:48:20,840 --> 00:48:22,560
Speaker 1: but if that's not the case, I would take that

1057
00:48:22,600 --> 00:48:24,759
Speaker 1: one off the table, Matt. I still have four to

1058
00:48:24,800 --> 00:48:27,640
Speaker 1: one K money with my old employer because it's with Vanguard,

1059
00:48:27,719 --> 00:48:30,200
Speaker 1: and I just have seen no reason to take it

1060
00:48:30,239 --> 00:48:34,919
Speaker 1: out of just this wonderful place and turn it into

1061
00:48:34,960 --> 00:48:37,759
Speaker 1: IRA money. Because I've got really low cost options and

1062
00:48:37,800 --> 00:48:40,560
Speaker 1: it's with one of my favorite brokerage firms. Why would

1063
00:48:40,600 --> 00:48:42,080
Speaker 1: I change anything? Why I switch it up?

1064
00:48:42,160 --> 00:48:44,839
Speaker 2: Yeah? And then beyond that, as a you could roll

1065
00:48:44,840 --> 00:48:46,759
Speaker 2: it into your new jobs four one K and that

1066
00:48:46,960 --> 00:48:50,080
Speaker 2: is if you have access to our favorite low cost

1067
00:48:50,080 --> 00:48:54,320
Speaker 2: investing options as well. And so we're specifically talking about Vanguard,

1068
00:48:54,600 --> 00:48:58,120
Speaker 2: Fidelity and Schwab. And that can be a solid move too.

1069
00:48:58,160 --> 00:49:00,560
Speaker 2: If you're just looking to keep things simple, right, like

1070
00:49:00,600 --> 00:49:04,920
Speaker 2: you are looking to have all your eggs and a single.

1071
00:49:04,640 --> 00:49:10,080
Speaker 1: Basket, one account log in, it's like you see all

1072
00:49:10,080 --> 00:49:12,799
Speaker 1: your investable assets or most of them essentially in one place.

1073
00:49:12,880 --> 00:49:14,719
Speaker 2: Yeah, if you like to stay organized and keep things

1074
00:49:14,719 --> 00:49:17,640
Speaker 2: super simple and buttoned up. But that being said, I

1075
00:49:17,640 --> 00:49:19,440
Speaker 2: could also see an argument to be made if you

1076
00:49:19,560 --> 00:49:21,439
Speaker 2: liked to Okay, I want to even pretend that money

1077
00:49:21,440 --> 00:49:24,600
Speaker 2: doesn't even exist. Let's keep it at the old employer. Again,

1078
00:49:24,640 --> 00:49:27,120
Speaker 2: assuming costs are low. I could almost see that being

1079
00:49:27,120 --> 00:49:28,719
Speaker 2: a strategy too. It kind of comes down to knowing

1080
00:49:28,760 --> 00:49:31,880
Speaker 2: yourself and what speaks to you as an investor.

1081
00:49:31,960 --> 00:49:34,279
Speaker 1: Oh, I don't pretend it doesn't exist. I mean I

1082
00:49:34,280 --> 00:49:36,359
Speaker 1: don't look in there like every month or anything like that,

1083
00:49:36,400 --> 00:49:36,799
Speaker 1: but I know.

1084
00:49:36,800 --> 00:49:40,960
Speaker 2: It's But if somebody might be tempted to feel richer

1085
00:49:41,000 --> 00:49:42,879
Speaker 2: than they are, and then they're and you know they're

1086
00:49:42,920 --> 00:49:45,560
Speaker 2: spending is more indicative of their net worth as opposed

1087
00:49:45,600 --> 00:49:49,040
Speaker 2: to what it is that they're earning month a month. Yeah,

1088
00:49:49,080 --> 00:49:50,320
Speaker 2: I think that could be a decent strategy.

1089
00:49:50,520 --> 00:49:52,719
Speaker 1: The third option is rolling you like how I said Ezzie,

1090
00:49:53,280 --> 00:49:55,800
Speaker 1: I did because that's what she called a lot of

1091
00:49:56,280 --> 00:49:57,879
Speaker 1: mess with your head, A lot of nicknames for him.

1092
00:49:58,239 --> 00:50:00,000
Speaker 1: I would call her Essie though it would be different.

1093
00:50:01,000 --> 00:50:03,880
Speaker 1: But rolling that money into an IRA is another great option.

1094
00:50:04,000 --> 00:50:06,480
Speaker 1: It's the one that most folks take, and you have

1095
00:50:06,600 --> 00:50:09,160
Speaker 1: full control over where your money goes, which means you

1096
00:50:09,160 --> 00:50:11,880
Speaker 1: can opt for the lowest cost providers. You are in

1097
00:50:12,080 --> 00:50:14,960
Speaker 1: full control. That's why I think why the majority of

1098
00:50:15,000 --> 00:50:18,439
Speaker 1: people opt for this choice. One of the biggest reasons, though,

1099
00:50:18,520 --> 00:50:21,960
Speaker 1: to potentially avoid this route is if your income is

1100
00:50:22,000 --> 00:50:24,359
Speaker 1: climbing and it looks like you're going to want to

1101
00:50:24,360 --> 00:50:28,720
Speaker 1: make backdoor wroth contributions in the future. Essentially, not having

1102
00:50:28,760 --> 00:50:31,960
Speaker 1: any money in a traditional IRA makes that a much

1103
00:50:32,120 --> 00:50:35,879
Speaker 1: simpler task. So if you attempt to, you know, back

1104
00:50:35,920 --> 00:50:37,360
Speaker 1: too a wroth money in the future, and you have

1105
00:50:37,400 --> 00:50:40,040
Speaker 1: money in traditional IRA, you're subject to the pro rautal rule.

1106
00:50:40,080 --> 00:50:43,280
Speaker 1: That can be kind of a frustrating thing to work through. Yeah,

1107
00:50:43,320 --> 00:50:45,400
Speaker 1: so if you think that's on the horizon, I think

1108
00:50:45,560 --> 00:50:48,000
Speaker 1: one of those first two options is probably a better choice.

1109
00:50:48,000 --> 00:50:49,360
Speaker 2: It doesn't mean you can't do it. You just have

1110
00:50:49,440 --> 00:50:51,799
Speaker 2: to calculate how much tax you actually owe. You got

1111
00:50:51,840 --> 00:50:54,360
Speaker 2: to figure out the percentage of the pretax versus the

1112
00:50:54,360 --> 00:50:56,520
Speaker 2: post tax. But uh ezra, I hope that gets you

1113
00:50:56,560 --> 00:50:57,600
Speaker 2: pointed in the right direction.

1114
00:50:58,960 --> 00:50:59,160
Speaker 5: Jel.

1115
00:50:59,200 --> 00:51:01,600
Speaker 2: The beier that you and I I enjoyed was a

1116
00:51:01,760 --> 00:51:06,480
Speaker 2: check style amber lagger, and it also had freshly picked

1117
00:51:06,520 --> 00:51:09,400
Speaker 2: spruce tips from Maine. Could you taste the spruce?

1118
00:51:09,760 --> 00:51:11,920
Speaker 1: I could, I could a little bit there, would you like,

1119
00:51:12,040 --> 00:51:14,359
Speaker 1: especially in the end? I did? Yeah, I loved it.

1120
00:51:14,360 --> 00:51:15,719
Speaker 2: It wasn't it wasn't too over the top.

1121
00:51:15,800 --> 00:51:17,440
Speaker 1: Sometimes if i'd be this time of year, you.

1122
00:51:17,360 --> 00:51:20,080
Speaker 2: Know, sometimes it can feel like you're drinking pine sal

1123
00:51:20,480 --> 00:51:21,959
Speaker 2: a little bit where you're just like, oh my gosh,

1124
00:51:22,000 --> 00:51:24,560
Speaker 2: if it feels too stringent, because a lot of times

1125
00:51:24,840 --> 00:51:27,319
Speaker 2: I think that's the only time we experience spruce or

1126
00:51:27,360 --> 00:51:29,520
Speaker 2: like juniper. Oh no, I guess I'm thinking about Gin.

1127
00:51:29,680 --> 00:51:33,040
Speaker 2: There's juniper, juniper berries, and and Gin.

1128
00:51:33,120 --> 00:51:35,320
Speaker 1: Is that she dies a kid? Before the tide Pod Challenge?

1129
00:51:35,320 --> 00:51:36,280
Speaker 1: Was it the pine sal challenge?

1130
00:51:36,320 --> 00:51:38,480
Speaker 2: Pesall challenge? I didn't. I didn't do any Oh no,

1131
00:51:38,560 --> 00:51:41,040
Speaker 2: I take it back. I did the cinnamon challenge. Have

1132
00:51:41,120 --> 00:51:43,719
Speaker 2: you ever done that? It's a spoonful of cinnamon, huh

1133
00:51:44,160 --> 00:51:47,239
Speaker 2: and if you can eat it, so you put it

1134
00:51:47,239 --> 00:51:51,040
Speaker 2: in your mouth and actually swallow and yeah, So what

1135
00:51:51,160 --> 00:51:54,120
Speaker 2: happens is it's so dry and pottery that the slightest

1136
00:51:54,160 --> 00:51:58,120
Speaker 2: inhale that cinnamon will shoot down in your lungs and

1137
00:51:58,160 --> 00:52:02,360
Speaker 2: then you spend the next day hacking your lungs out.

1138
00:52:01,960 --> 00:52:04,880
Speaker 2: And I mean it's I do not advise people to

1139
00:52:04,920 --> 00:52:06,799
Speaker 2: do this, but it's something that I certainly did when

1140
00:52:06,800 --> 00:52:10,200
Speaker 2: I was in high school as an idiot sixteen year old.

1141
00:52:09,960 --> 00:52:13,400
Speaker 1: Ingest cinnamon in small quantities and don't ingest cleaning products

1142
00:52:13,440 --> 00:52:14,200
Speaker 1: in any amount.

1143
00:52:14,320 --> 00:52:15,120
Speaker 2: I definitely don't do that.

1144
00:52:15,320 --> 00:52:17,560
Speaker 1: My thoughts on this, I think I like this. The

1145
00:52:17,719 --> 00:52:20,160
Speaker 1: sweet caramel vibes of this had going on. Yeah, this

1146
00:52:20,239 --> 00:52:23,640
Speaker 1: is that amber. Yeah, check lagger. The toasted malt does get.

1147
00:52:23,760 --> 00:52:26,920
Speaker 1: But then the spruce tip note added something special to

1148
00:52:26,960 --> 00:52:29,960
Speaker 1: this one. So yeah, especially he has a pre Christmas beer.

1149
00:52:29,960 --> 00:52:30,359
Speaker 1: I'm a fan.

1150
00:52:30,440 --> 00:52:33,000
Speaker 2: The Christmas vibes are strong with this one, But Buddy,

1151
00:52:33,000 --> 00:52:35,719
Speaker 2: that's gonna be it for this ask how to Money episode.

1152
00:52:35,760 --> 00:52:37,440
Speaker 2: You can find our show notes up on the website

1153
00:52:37,480 --> 00:52:39,360
Speaker 2: at how to money dot com. But that's gonna be

1154
00:52:39,440 --> 00:52:42,800
Speaker 2: it soon. Until next time, Best Friends Out, Best Friends Out,