1 00:00:00,080 --> 00:00:02,840 Speaker 1: Welcome to How the Money. I'm Joel and I'm Matt, 2 00:00:03,000 --> 00:00:25,840 Speaker 1: and today we are answering your listener questions. That's Rachel. 3 00:00:25,880 --> 00:00:29,600 Speaker 1: It's Monday, which means of the time we are of 4 00:00:29,640 --> 00:00:32,280 Speaker 1: the time answering listener questions. I don't know how to 5 00:00:32,320 --> 00:00:34,400 Speaker 1: do the math on that. That's that's how that math work, 6 00:00:35,320 --> 00:00:37,560 Speaker 1: for sure. But uh, yeah, we've got a couple of 7 00:00:37,640 --> 00:00:40,800 Speaker 1: questions about bonds, which is one of those things that 8 00:00:40,960 --> 00:00:42,600 Speaker 1: is sort of on the periphery of what we normally 9 00:00:42,640 --> 00:00:44,560 Speaker 1: talk about, and so it'll be good to dive into 10 00:00:44,600 --> 00:00:47,559 Speaker 1: savings bonds as well as stocks versus bonds in an 11 00:00:47,560 --> 00:00:50,319 Speaker 1: investment portfolio. We have a question about new student loan 12 00:00:50,440 --> 00:00:53,319 Speaker 1: rates given the current health crisis that we're in, as 13 00:00:53,320 --> 00:00:56,440 Speaker 1: well as insurance brokers what they're all about. So I'm 14 00:00:56,440 --> 00:00:59,360 Speaker 1: looking forward to tackling these questions with you, my buddy. Yeah, 15 00:00:59,360 --> 00:01:01,240 Speaker 1: we've got some good one today, man. But before we 16 00:01:01,280 --> 00:01:03,600 Speaker 1: get to those listener questions, you were telling me about 17 00:01:03,640 --> 00:01:05,199 Speaker 1: working out from home, and it's kind of some free 18 00:01:05,200 --> 00:01:07,240 Speaker 1: resources to help people out because a lot of us 19 00:01:07,240 --> 00:01:09,240 Speaker 1: are getting maybe a little bit lazy, and I'm just 20 00:01:09,240 --> 00:01:12,039 Speaker 1: speaking for myself, at least getting a little bit lazy 21 00:01:12,040 --> 00:01:14,280 Speaker 1: with the working out routine. I think it's hard to 22 00:01:14,400 --> 00:01:16,959 Speaker 1: maintain any sort of healthy routine given the kind of 23 00:01:17,000 --> 00:01:19,320 Speaker 1: life that we've been living over the past several weeks. 24 00:01:19,360 --> 00:01:21,720 Speaker 1: You know, it takes sometimes years to kind of get 25 00:01:21,760 --> 00:01:23,840 Speaker 1: into a rhythm of what you want your life to 26 00:01:23,880 --> 00:01:25,440 Speaker 1: look like. When you start a new job, you know, 27 00:01:25,520 --> 00:01:27,679 Speaker 1: like it might take you a full twelve months before 28 00:01:27,680 --> 00:01:29,760 Speaker 1: you feel that you're kind of into a groove and 29 00:01:29,800 --> 00:01:31,560 Speaker 1: where it feels like you're firing on all cylinders with 30 00:01:31,600 --> 00:01:33,679 Speaker 1: your time. You know, again, that's me. I'm kind of 31 00:01:33,720 --> 00:01:36,240 Speaker 1: a creature of habit and so but once I do 32 00:01:36,319 --> 00:01:38,959 Speaker 1: find that groove, I'm cruising. You know, I'm good, But 33 00:01:39,080 --> 00:01:41,360 Speaker 1: I have not found that yet, and I feel like 34 00:01:41,480 --> 00:01:43,600 Speaker 1: it's it takes maybe a long time to get into 35 00:01:43,600 --> 00:01:45,800 Speaker 1: that groove and a very short time to get kind 36 00:01:45,800 --> 00:01:47,360 Speaker 1: of pushed out of it, and it can be really 37 00:01:47,400 --> 00:01:49,440 Speaker 1: hard to to find a new one again. And I 38 00:01:49,440 --> 00:01:51,120 Speaker 1: think that's what probably a lot of people are struggling 39 00:01:51,160 --> 00:01:54,000 Speaker 1: with right now, is like, how do I incorporate working out? 40 00:01:54,040 --> 00:01:57,480 Speaker 1: How do I incorporate kind of staying healthy into this 41 00:01:58,480 --> 00:02:02,760 Speaker 1: quarantine coronavirus world? Yeah, totally agree, man, For me riding 42 00:02:02,760 --> 00:02:04,760 Speaker 1: my bike taking the girls to school on the cargo 43 00:02:04,800 --> 00:02:07,320 Speaker 1: bike every morning. That was essentially how I got my 44 00:02:07,560 --> 00:02:10,720 Speaker 1: cardio exercise in every single morning, got the heart rate up, 45 00:02:10,720 --> 00:02:12,200 Speaker 1: got the blood flowing, I was ready to start the 46 00:02:12,240 --> 00:02:15,760 Speaker 1: day after that. I haven't done that in a while now. 47 00:02:16,200 --> 00:02:18,560 Speaker 1: And I saw how some streaming services, some of these 48 00:02:18,560 --> 00:02:22,600 Speaker 1: different wellness apps, they're offering either a discounted rate or 49 00:02:22,720 --> 00:02:25,760 Speaker 1: their their services completely for free. Specifically, one that stood 50 00:02:25,760 --> 00:02:27,760 Speaker 1: out to me Nike Training Club. They normally have a 51 00:02:27,800 --> 00:02:32,080 Speaker 1: foe for like their premium service, and they are waving 52 00:02:32,120 --> 00:02:35,160 Speaker 1: that fee and definitely for folks which a super cool 53 00:02:35,520 --> 00:02:38,000 Speaker 1: Planet Fitness. They've also got this twenty minute at home 54 00:02:38,000 --> 00:02:40,519 Speaker 1: workout that they that they host every day on their 55 00:02:40,520 --> 00:02:43,359 Speaker 1: Facebook page, and so it's available to not just their 56 00:02:43,400 --> 00:02:45,840 Speaker 1: current members but non members alike. And so you don't 57 00:02:45,880 --> 00:02:48,480 Speaker 1: even have to be a member at Planet Fitness. Obviously 58 00:02:48,520 --> 00:02:50,760 Speaker 1: you cannot show up right now in person to the 59 00:02:50,760 --> 00:02:53,040 Speaker 1: physical locations, but yeah, you can just hop over to 60 00:02:53,160 --> 00:02:56,639 Speaker 1: their page on Facebook see that workout and anybody can 61 00:02:56,639 --> 00:02:58,320 Speaker 1: see that. I think that's super cool and it's I 62 00:02:58,320 --> 00:03:01,120 Speaker 1: think it's smart too from from a business standpoint. Obviously, 63 00:03:01,200 --> 00:03:04,720 Speaker 1: they're providing value for a lot of folks to be healthier, right, 64 00:03:04,960 --> 00:03:06,480 Speaker 1: But it's a good way for them to kind of 65 00:03:06,639 --> 00:03:09,160 Speaker 1: get their name and get their workouts out in front 66 00:03:09,200 --> 00:03:11,680 Speaker 1: of people because you start getting used to how Planet 67 00:03:11,680 --> 00:03:13,960 Speaker 1: Fitness does things, and all of a sudden, you know, 68 00:03:14,080 --> 00:03:16,320 Speaker 1: we're post quarantine, and you think, oh, maybe I'll maybe 69 00:03:16,360 --> 00:03:18,680 Speaker 1: I'll kind of sign up and go with them. Who knows. Yeah, 70 00:03:18,680 --> 00:03:21,799 Speaker 1: totally super smart business move. I love seeing companies kind 71 00:03:21,800 --> 00:03:23,560 Speaker 1: of think outside the box because that's what it takes 72 00:03:23,600 --> 00:03:25,320 Speaker 1: right now, a little bit of outside the box thinking. 73 00:03:25,680 --> 00:03:27,919 Speaker 1: And for everyone out there who is trying to find 74 00:03:28,200 --> 00:03:30,520 Speaker 1: some sort of fitness routine, I think those are great options. Matt. 75 00:03:30,600 --> 00:03:32,639 Speaker 1: I also want to say, on the flip side of 76 00:03:32,680 --> 00:03:35,760 Speaker 1: working out and you know free how fitness help. Well, 77 00:03:35,800 --> 00:03:38,800 Speaker 1: I've seen stats that people are actually drinking alcohol like 78 00:03:38,880 --> 00:03:41,200 Speaker 1: a good bit more these days, Like alcohol consumption is 79 00:03:41,280 --> 00:03:44,640 Speaker 1: up almost fifty during quarantine, and you and I, of 80 00:03:44,680 --> 00:03:47,880 Speaker 1: course we drink a beer on every episode, but we 81 00:03:47,960 --> 00:03:51,360 Speaker 1: are also big fans of moderation and not drinking uh 82 00:03:51,400 --> 00:03:53,960 Speaker 1: too much at all. So yeah, if people are getting 83 00:03:53,960 --> 00:03:57,000 Speaker 1: out of their habits, their healthy habits of working out 84 00:03:57,040 --> 00:04:00,520 Speaker 1: and then they're also drinking more whiskey or beer or 85 00:04:00,520 --> 00:04:02,520 Speaker 1: whatever it is at night, and then that can quickly 86 00:04:02,600 --> 00:04:04,840 Speaker 1: lead to just a good bit of unhealthiness. And so yeah, 87 00:04:04,880 --> 00:04:07,320 Speaker 1: we want to encourage people to not only try to 88 00:04:07,360 --> 00:04:09,960 Speaker 1: continue working out a little bit, but also uh, not 89 00:04:10,320 --> 00:04:12,760 Speaker 1: drink too much because yeah, you don't want to get 90 00:04:12,760 --> 00:04:15,640 Speaker 1: into that super lax quarantine lifestyle. Because yeah, I know 91 00:04:15,720 --> 00:04:17,920 Speaker 1: that can be easy, right, our routines are shaken, it's 92 00:04:17,920 --> 00:04:19,640 Speaker 1: easy to get into a new routine and a really 93 00:04:19,720 --> 00:04:22,159 Speaker 1: unhealthy routine super easily. Yeah, we want to stay healthy. 94 00:04:22,240 --> 00:04:24,479 Speaker 1: We want to keep that that physique going on. We 95 00:04:24,480 --> 00:04:27,960 Speaker 1: don't want to end up like Thor on Avengers and Game. 96 00:04:28,200 --> 00:04:30,960 Speaker 1: Yeah I didn't see it, so he was drinking that 97 00:04:30,800 --> 00:04:32,719 Speaker 1: that was where he's drinking Creature Comforts, which is one 98 00:04:32,760 --> 00:04:34,839 Speaker 1: of our favorite breweries. But in the movie he's like 99 00:04:34,880 --> 00:04:37,920 Speaker 1: throwing back Creature Comfort. The screenshot lighting around, but he's 100 00:04:37,920 --> 00:04:39,960 Speaker 1: all he's like you know, Thor, he's like the son 101 00:04:40,000 --> 00:04:42,080 Speaker 1: of the Gods, but he's like all washed up and 102 00:04:42,200 --> 00:04:45,040 Speaker 1: has a big old belly. I know, we don't want 103 00:04:45,040 --> 00:04:46,240 Speaker 1: to be there right at the end of days, that's 104 00:04:46,279 --> 00:04:47,560 Speaker 1: that what we want to be keep doing what you 105 00:04:47,560 --> 00:04:49,760 Speaker 1: need to do, whether that's maybe getting outside and run. 106 00:04:50,160 --> 00:04:52,200 Speaker 1: I'm actually I've been firing that up recently to Joel. 107 00:04:52,400 --> 00:04:54,599 Speaker 1: Have you ever, um run any races, like sign up 108 00:04:54,600 --> 00:04:55,839 Speaker 1: for a race or anything like that, Like it's in 109 00:04:55,920 --> 00:04:58,240 Speaker 1: K five k like a Thanksgiving Day race before, but 110 00:04:58,360 --> 00:05:00,600 Speaker 1: that's it, like with the family kind of thing. Yeah, yeah, yeah, 111 00:05:00,600 --> 00:05:01,680 Speaker 1: one of these days I want to get you to 112 00:05:01,720 --> 00:05:03,320 Speaker 1: sign up for a tin k and that. I think 113 00:05:03,320 --> 00:05:04,479 Speaker 1: that'd be a lot of fun for us to do 114 00:05:04,520 --> 00:05:06,440 Speaker 1: that together. And I'll think about it. Well, here's the thing. 115 00:05:06,480 --> 00:05:08,080 Speaker 1: Your legs are so stinking along, I bet you'd be 116 00:05:08,080 --> 00:05:11,680 Speaker 1: able to like take maybe fewer steps than me. You're 117 00:05:11,720 --> 00:05:14,160 Speaker 1: probably right, yeah, but because I have really short legs, 118 00:05:14,200 --> 00:05:15,440 Speaker 1: I'm gona have to do a lot of work take 119 00:05:15,640 --> 00:05:17,880 Speaker 1: in shape for that whatever it takes for you to 120 00:05:17,880 --> 00:05:20,280 Speaker 1: stay healthy. Man, Yeah, for sure. All right, Matt, Well, um, 121 00:05:20,320 --> 00:05:22,440 Speaker 1: I'm glad we could hidelight those things. But yeah, let's 122 00:05:22,440 --> 00:05:24,280 Speaker 1: mention the beer we're having on the show today. We're 123 00:05:24,320 --> 00:05:27,320 Speaker 1: drinking Nightmare on Brett and it's a dark sour ale 124 00:05:27,640 --> 00:05:30,040 Speaker 1: by Crooked Stave. Of course, they are an awesome brewery 125 00:05:30,279 --> 00:05:32,560 Speaker 1: out of Denver, Colorado. So we're excited to get to 126 00:05:32,600 --> 00:05:34,880 Speaker 1: have this one on the show today. But Matt, let's 127 00:05:34,880 --> 00:05:37,120 Speaker 1: get on to listener questions. And for folks that want 128 00:05:37,120 --> 00:05:39,039 Speaker 1: to submit a listener question for the show, just go 129 00:05:39,080 --> 00:05:42,080 Speaker 1: to how to money dot com slash ask. It's super 130 00:05:42,120 --> 00:05:44,800 Speaker 1: simple for you to leave a voice question and we'll 131 00:05:44,800 --> 00:05:46,400 Speaker 1: take a listen. Hopefully we can answer it on an 132 00:05:46,480 --> 00:05:48,520 Speaker 1: upcoming episode. But let's get to the first one for 133 00:05:48,560 --> 00:05:52,320 Speaker 1: the day, Matt, about stocks and bonds. Hey, Matt and Joel. 134 00:05:52,560 --> 00:05:55,240 Speaker 1: This is Joe from Atlanta, Georgia, right around the corner 135 00:05:55,279 --> 00:05:58,359 Speaker 1: from you guys over here in West Smidtown. I hope 136 00:05:58,360 --> 00:06:01,719 Speaker 1: everyone is doing fine during these uncertain times. I have 137 00:06:01,760 --> 00:06:05,039 Speaker 1: a quick question related to this stock market downturn caused 138 00:06:05,080 --> 00:06:08,239 Speaker 1: by COVID nineteen. I was wondering if I should sell 139 00:06:08,279 --> 00:06:12,520 Speaker 1: my bonds in my portfolio and by stock during this downturn. 140 00:06:13,320 --> 00:06:16,400 Speaker 1: My thought process is selling bonds that have not depreciated 141 00:06:16,520 --> 00:06:19,920 Speaker 1: much and using that money to purchase discounted stocks will 142 00:06:19,960 --> 00:06:23,200 Speaker 1: be more beneficial to me over the long term. A 143 00:06:23,200 --> 00:06:26,320 Speaker 1: little background, I'm twenty eight years old and wanting to 144 00:06:26,360 --> 00:06:30,560 Speaker 1: hold these stocks for the long run, at least twenty years. Also, 145 00:06:30,640 --> 00:06:34,760 Speaker 1: bonds are currently thirty of my portfolio right now. Thanks 146 00:06:34,800 --> 00:06:38,599 Speaker 1: for everything you'll do for a lot of the podcast. Hey, Joe, 147 00:06:38,640 --> 00:06:40,760 Speaker 1: thanks so much for that question, and thanks for asking. 148 00:06:40,920 --> 00:06:42,720 Speaker 1: Joe and I were actually doing pretty good as well 149 00:06:42,760 --> 00:06:46,120 Speaker 1: as can be expected given all that's going on. When 150 00:06:46,160 --> 00:06:47,880 Speaker 1: we hope that you are doing pretty well too, man. 151 00:06:48,400 --> 00:06:51,000 Speaker 1: And also you mentioned that you're living over in West Midtown. 152 00:06:51,200 --> 00:06:53,200 Speaker 1: Make sure that you grab some of those Monday night 153 00:06:53,360 --> 00:06:56,599 Speaker 1: beers because those guys are right there near you, at 154 00:06:56,680 --> 00:06:59,760 Speaker 1: least their their original location right there off of Trade Bart. Yeah, 155 00:07:00,120 --> 00:07:02,040 Speaker 1: we were going out still mat which you know, I 156 00:07:02,080 --> 00:07:05,560 Speaker 1: didn't do very much anyway before this all happened, but 157 00:07:05,720 --> 00:07:08,320 Speaker 1: we would probably see Joe over there Monday night. Absolutely. 158 00:07:08,360 --> 00:07:11,600 Speaker 1: But Joey, so you're asking essentially about rebalancing your portfolio 159 00:07:11,680 --> 00:07:15,120 Speaker 1: between stocks and bonds, right and the short answer is yes, 160 00:07:15,680 --> 00:07:17,520 Speaker 1: now is a great time to go ahead and rebalance. 161 00:07:17,720 --> 00:07:20,280 Speaker 1: Take money from those bonds and put it into stocks, 162 00:07:20,640 --> 00:07:23,440 Speaker 1: in particular, while the stock markets on sale, while the 163 00:07:23,440 --> 00:07:26,480 Speaker 1: markets down, you know, and especially given your age and 164 00:07:26,480 --> 00:07:29,520 Speaker 1: how long you plan on holding onto these assets, stocks 165 00:07:29,520 --> 00:07:33,520 Speaker 1: should make up the overwhelming majority of your portfolio. Most 166 00:07:33,600 --> 00:07:36,200 Speaker 1: target retirement funds, they would only have you in ten 167 00:07:37,040 --> 00:07:40,080 Speaker 1: bonds given those factors you know you mentioned, hanging onto 168 00:07:40,160 --> 00:07:43,600 Speaker 1: them for at least twenty years. Vanguardsty Target Day Fund 169 00:07:43,760 --> 00:07:46,240 Speaker 1: is made up of about eighteen percent bonds, but Fidelities 170 00:07:46,840 --> 00:07:49,360 Speaker 1: fund is made up of even fewer and their bond 171 00:07:49,360 --> 00:07:52,560 Speaker 1: allocation only makes up about seven percent of that fun 172 00:07:52,680 --> 00:07:54,880 Speaker 1: So you're looking at between seven percent and eighteen percent. 173 00:07:55,120 --> 00:07:57,600 Speaker 1: So the fact that you have about your portfolio made 174 00:07:57,680 --> 00:08:00,800 Speaker 1: up of bonds, uh, yes, you you most definitely do 175 00:08:00,920 --> 00:08:04,120 Speaker 1: want to consider moving some of that over into stocks. Yeah, mat, 176 00:08:04,160 --> 00:08:06,280 Speaker 1: let's talk about bonds too, and the purpose that bonds 177 00:08:06,280 --> 00:08:09,280 Speaker 1: play in the portfolio. Right, The biggest reason that investors 178 00:08:09,320 --> 00:08:12,600 Speaker 1: include bonds inside of their investment portfolio is to provide 179 00:08:12,600 --> 00:08:15,200 Speaker 1: some stability and some balance. The reason for this is 180 00:08:15,200 --> 00:08:17,320 Speaker 1: because interest rates can often be moving downward at the 181 00:08:17,360 --> 00:08:19,679 Speaker 1: same time that the economy is slowing, at the same 182 00:08:19,720 --> 00:08:22,520 Speaker 1: time that stocks are potentially losing value, and this is 183 00:08:22,560 --> 00:08:24,880 Speaker 1: exactly what we've seen over the past several weeks. If 184 00:08:24,920 --> 00:08:27,880 Speaker 1: interest rates are decreasing, the value of bonds are likely increasing, 185 00:08:28,040 --> 00:08:31,040 Speaker 1: which can create a natural hedge against stock market volatility. 186 00:08:31,160 --> 00:08:33,720 Speaker 1: It doesn't always work like this, but often it does, 187 00:08:34,000 --> 00:08:36,280 Speaker 1: and so for people that have more bonds in their 188 00:08:36,280 --> 00:08:40,000 Speaker 1: portfolio and the markets tanks sees a huge dip, then 189 00:08:40,120 --> 00:08:42,679 Speaker 1: the markets are often going to provide you some balance 190 00:08:42,720 --> 00:08:45,720 Speaker 1: in that portfolio, ensuring that you're gonna see far less 191 00:08:45,800 --> 00:08:49,520 Speaker 1: volatility in your personal portfolio. It'll be far less reflective 192 00:08:49,720 --> 00:08:52,000 Speaker 1: of what the stock market is doing overall. Yeah, man, 193 00:08:52,040 --> 00:08:54,720 Speaker 1: that's right. But Joe, you don't really need bonds right 194 00:08:54,760 --> 00:08:57,280 Speaker 1: now though, based on what we're saying here. Uh, the 195 00:08:57,280 --> 00:08:59,800 Speaker 1: thing is, since you're not looking to touch this money 196 00:08:59,800 --> 00:09:02,080 Speaker 1: for at least twenty years, if not even longer, you 197 00:09:02,120 --> 00:09:04,760 Speaker 1: really shouldn't be looking for stability and balance. What you 198 00:09:04,800 --> 00:09:07,080 Speaker 1: really want to be focusing on right now is growth. 199 00:09:07,640 --> 00:09:09,760 Speaker 1: We recently had Jail Collins on where we talked about 200 00:09:09,800 --> 00:09:13,040 Speaker 1: investing for multiple lifetimes. That was episode one sevent five, 201 00:09:13,480 --> 00:09:15,680 Speaker 1: and within that conversation we you know, we talked about 202 00:09:15,720 --> 00:09:18,720 Speaker 1: how theoretically, you know, Jail says that we should always 203 00:09:18,840 --> 00:09:21,800 Speaker 1: focus on growth since essentially we're gonna pass that money 204 00:09:21,840 --> 00:09:24,959 Speaker 1: along to our children or we're gonna reincarnate, and you know, 205 00:09:24,960 --> 00:09:26,960 Speaker 1: we're gonna need the money then, like the phoenix, we're 206 00:09:27,000 --> 00:09:29,400 Speaker 1: gonna rise from the ashes, you know, And so we 207 00:09:29,440 --> 00:09:32,280 Speaker 1: don't love that at your young age you are invested 208 00:09:32,360 --> 00:09:35,520 Speaker 1: so conservatively you want to move from a heavyweight of 209 00:09:35,559 --> 00:09:38,959 Speaker 1: bonds towards more stocks and get them on sale while 210 00:09:39,040 --> 00:09:41,680 Speaker 1: you do it. Yeah and Joe. Ultimately, what it comes 211 00:09:41,679 --> 00:09:43,840 Speaker 1: down to is kind of having an investing game plan. 212 00:09:44,160 --> 00:09:46,440 Speaker 1: And after you make some of these changes, and you 213 00:09:46,480 --> 00:09:49,360 Speaker 1: do reallocate some of those bonds into stocks, and you 214 00:09:49,520 --> 00:09:52,040 Speaker 1: do have a more stock heavy portfolio, which because you're 215 00:09:52,040 --> 00:09:54,240 Speaker 1: in your twenties, it makes sense. It's important to come 216 00:09:54,320 --> 00:09:57,200 Speaker 1: up with a dedicated investment philosophy that helps you stick 217 00:09:57,240 --> 00:10:00,360 Speaker 1: to a system of when and how you read balance 218 00:10:00,600 --> 00:10:02,920 Speaker 1: so you aren't trying to time the market right that 219 00:10:03,000 --> 00:10:05,720 Speaker 1: the timing has worked out in your favor in this instance, right, 220 00:10:05,760 --> 00:10:08,160 Speaker 1: but you'll potentially waste a lot of time trying to 221 00:10:08,200 --> 00:10:10,520 Speaker 1: predict what the markets are going to do in the future. 222 00:10:10,559 --> 00:10:12,080 Speaker 1: That's not good for any of us. And there's nobody 223 00:10:12,120 --> 00:10:14,080 Speaker 1: out there that I know of that can consistently and 224 00:10:14,160 --> 00:10:16,800 Speaker 1: accurately predict what the market is going to do. So 225 00:10:16,960 --> 00:10:19,920 Speaker 1: for you, we would say aim for an eight portfolio 226 00:10:20,080 --> 00:10:23,000 Speaker 1: or even better, probably a ninety ten portfolio for now 227 00:10:23,240 --> 00:10:27,520 Speaker 1: consistently and rebalanced that portfolio once a year, or just 228 00:10:27,559 --> 00:10:29,960 Speaker 1: put all your money in one of those target retirement 229 00:10:29,960 --> 00:10:31,760 Speaker 1: funds that Matt was talking about kind of at the 230 00:10:31,760 --> 00:10:33,960 Speaker 1: beginning of this answer. That's the easy button for you. 231 00:10:34,200 --> 00:10:37,160 Speaker 1: If you went into the Vanguard or the Fidelity, either one. Right, 232 00:10:37,200 --> 00:10:39,839 Speaker 1: they do have different allocations, but but either one is 233 00:10:39,840 --> 00:10:42,640 Speaker 1: going to provide you some bond exposure in your portfolio, 234 00:10:42,760 --> 00:10:44,920 Speaker 1: but it's gonna put you mostly in the overall market. 235 00:10:45,120 --> 00:10:47,520 Speaker 1: And the next thing about that is it will automatically 236 00:10:47,559 --> 00:10:50,000 Speaker 1: rebalance for you over the years and will get more 237 00:10:50,000 --> 00:10:52,800 Speaker 1: conservative as you get closer to retirement age. So if 238 00:10:52,800 --> 00:10:54,400 Speaker 1: you want to do the easy button and you don't 239 00:10:54,400 --> 00:10:57,839 Speaker 1: want to have to rebalance your portfolio right January every 240 00:10:57,880 --> 00:11:01,000 Speaker 1: year or whatever date you pick in a target retirement 241 00:11:01,000 --> 00:11:03,600 Speaker 1: fund is such a good idea. It's so simple and 242 00:11:03,600 --> 00:11:05,960 Speaker 1: it just makes sense for a lot of investors out there. 243 00:11:06,160 --> 00:11:08,400 Speaker 1: That's right, man. And so, Joe, you aren't a great position. 244 00:11:08,400 --> 00:11:10,480 Speaker 1: You've had bonds up until now, so your portfolio is 245 00:11:10,520 --> 00:11:12,839 Speaker 1: probably looking pretty healthy, but now it is probably a 246 00:11:12,920 --> 00:11:15,280 Speaker 1: great time to go ahead and sell those bonds, load 247 00:11:15,360 --> 00:11:17,880 Speaker 1: up on stocks, and do some smart things with your money. 248 00:11:17,960 --> 00:11:19,640 Speaker 1: All right, Joel, we've got a couple more questions. We're 249 00:11:19,640 --> 00:11:22,120 Speaker 1: gonna get to student loans as well as insurance brokers 250 00:11:22,240 --> 00:11:33,520 Speaker 1: right after the break. All right, Att, we're back from 251 00:11:33,520 --> 00:11:36,839 Speaker 1: the break. Next question is about student loans. Hi, Matt 252 00:11:36,880 --> 00:11:38,920 Speaker 1: and Joel. My name is Cynthia and I'm from the 253 00:11:38,920 --> 00:11:42,360 Speaker 1: Bay Area, California. I'm applying to a private nursing school, 254 00:11:42,360 --> 00:11:44,800 Speaker 1: and I'm wondering would it be difficult to get a 255 00:11:44,800 --> 00:11:47,800 Speaker 1: student loan in the COVID nineteen world, and what would 256 00:11:47,800 --> 00:11:50,600 Speaker 1: be considered a good break in this condition. I already 257 00:11:50,600 --> 00:11:52,640 Speaker 1: have a bachelor's degree, so I don't think I will 258 00:11:52,679 --> 00:11:54,960 Speaker 1: qualify for a fat STA and I don't have much 259 00:11:55,000 --> 00:11:56,880 Speaker 1: of my savings due to the high costs of living 260 00:11:56,880 --> 00:11:59,720 Speaker 1: here with only a part time job. I do, however, 261 00:11:59,800 --> 00:12:02,280 Speaker 1: have excellent credit if that helps, and my parents are 262 00:12:02,280 --> 00:12:04,520 Speaker 1: willing to co sign. Can't wait to become a nurse 263 00:12:04,559 --> 00:12:06,400 Speaker 1: and make a difference. I hope you guys are safe 264 00:12:06,440 --> 00:12:09,520 Speaker 1: and healthy. By all right, Cynthia. Great to hear from you, 265 00:12:09,640 --> 00:12:12,760 Speaker 1: and the good news is that you've chosen a great 266 00:12:12,760 --> 00:12:15,160 Speaker 1: occupation right that will allow you to not only care 267 00:12:15,240 --> 00:12:17,400 Speaker 1: for folks who are sick and who need help, but 268 00:12:17,520 --> 00:12:20,319 Speaker 1: it's a job that'll pay well to The median annual 269 00:12:20,360 --> 00:12:24,640 Speaker 1: wage for nurse anesthetists, nurse midwives, and nurse practitioners was 270 00:12:24,720 --> 00:12:29,160 Speaker 1: over thousand dollars and eighteen and the overall employment is 271 00:12:29,200 --> 00:12:35,560 Speaker 1: projected to grow from this is much faster than the 272 00:12:35,600 --> 00:12:38,560 Speaker 1: average for all other occupations. And these numbers are from 273 00:12:38,640 --> 00:12:41,400 Speaker 1: the Bureau of Labor Statistics. Yeah, Matt, it seems like 274 00:12:41,400 --> 00:12:43,640 Speaker 1: we always have a shortage of nurses, and it seems 275 00:12:43,679 --> 00:12:46,240 Speaker 1: like that shortage is only going to increase. So big 276 00:12:46,240 --> 00:12:49,160 Speaker 1: props to Cynthia for picking an occupation that, yeah, not 277 00:12:49,200 --> 00:12:52,080 Speaker 1: only provides a service but also is in great need. Yeah, 278 00:12:52,080 --> 00:12:54,439 Speaker 1: a lot of runway for her, right, like aging population, 279 00:12:54,559 --> 00:12:56,800 Speaker 1: folks with living longer, a lot of reasons that nurses 280 00:12:56,840 --> 00:12:58,160 Speaker 1: are going to be in high demand. Yeah, for a 281 00:12:58,200 --> 00:13:00,360 Speaker 1: lot of years to come. Yeah, and Cynthia onto your 282 00:13:00,400 --> 00:13:03,040 Speaker 1: question really about student loans and COVID nineteen and how 283 00:13:03,080 --> 00:13:05,000 Speaker 1: that changes things. Well, one of the bright spots of 284 00:13:05,040 --> 00:13:08,720 Speaker 1: the economic turmoil caused by this virus has been interest 285 00:13:08,840 --> 00:13:13,120 Speaker 1: rate drops. The benefit borrowers, right, It's also negatively affected savers. 286 00:13:13,320 --> 00:13:15,160 Speaker 1: So if you have a savings account, you've noticed your 287 00:13:15,320 --> 00:13:18,400 Speaker 1: your savings rate dropping. But if you're borrowing. You've noticed 288 00:13:18,440 --> 00:13:20,679 Speaker 1: that those rates have gone down, which is great. We've 289 00:13:20,679 --> 00:13:23,360 Speaker 1: seen lower rates for home refinancing. We might even see 290 00:13:23,400 --> 00:13:26,160 Speaker 1: credit card interest rates go down, which doesn't happen all 291 00:13:26,160 --> 00:13:29,200 Speaker 1: that often. Yeah, seriously, it's it seems to never apply 292 00:13:29,320 --> 00:13:31,280 Speaker 1: to credit card companies. They don't, they don't seem too 293 00:13:31,640 --> 00:13:34,440 Speaker 1: never know, Man, that would be amazing, that would be great. 294 00:13:34,679 --> 00:13:36,640 Speaker 1: And those lower rates are also going to have an 295 00:13:36,640 --> 00:13:39,600 Speaker 1: impact on next year's student loan rates when you're going 296 00:13:39,640 --> 00:13:41,640 Speaker 1: to be applying and going to school, when you're gonna 297 00:13:41,640 --> 00:13:44,160 Speaker 1: be taking those loans out. Some people are predicting sub 298 00:13:44,200 --> 00:13:47,760 Speaker 1: two percent loan rates for undergraduates, which would be historically low, 299 00:13:47,800 --> 00:13:50,880 Speaker 1: like that's never happened before, and graduate loans could be 300 00:13:50,880 --> 00:13:53,280 Speaker 1: closer to three and a half percent. So considering what 301 00:13:53,320 --> 00:13:55,960 Speaker 1: we've seen recently in regards to student loan rates, but 302 00:13:56,000 --> 00:13:58,280 Speaker 1: when when people go to school and they're taking out loans, 303 00:13:58,320 --> 00:14:01,319 Speaker 1: these are ridiculously low. And yeah, so given all that, 304 00:14:01,559 --> 00:14:03,120 Speaker 1: it certainly seems like it could be a really good 305 00:14:03,160 --> 00:14:05,240 Speaker 1: time for Cynthia to be going back to school for 306 00:14:05,280 --> 00:14:08,360 Speaker 1: this degree. And Cynthia, the federal student loan program won't 307 00:14:08,400 --> 00:14:12,520 Speaker 1: have any major significant changes for students seeking school loans 308 00:14:12,520 --> 00:14:14,280 Speaker 1: in the future, at least from what we've seen yet, 309 00:14:14,280 --> 00:14:16,880 Speaker 1: there might be changes. There's there's stuff being floated every day, 310 00:14:16,920 --> 00:14:18,560 Speaker 1: it seems like, as far as changes that could be 311 00:14:18,600 --> 00:14:21,320 Speaker 1: made and different stimuli that might be introduced. Right, using 312 00:14:21,320 --> 00:14:22,800 Speaker 1: the plural form, I like it. Yeah, I just just 313 00:14:22,840 --> 00:14:25,160 Speaker 1: add and I can do that with my last name too, 314 00:14:25,200 --> 00:14:28,200 Speaker 1: did you know that exactly? So much of this, though, 315 00:14:28,320 --> 00:14:31,120 Speaker 1: does have to do with how the economy is looking 316 00:14:31,160 --> 00:14:33,080 Speaker 1: in the coming months. If we're able to get ahold 317 00:14:33,160 --> 00:14:35,840 Speaker 1: of the spread of the coronavirus and the economy does 318 00:14:35,880 --> 00:14:38,760 Speaker 1: turn around, like, there's a chance that interest rates could rise. 319 00:14:38,880 --> 00:14:41,840 Speaker 1: I think it's highly unlikely, but there's a chance. However, 320 00:14:41,880 --> 00:14:44,000 Speaker 1: if the health crisis is still a big problem and 321 00:14:44,000 --> 00:14:46,880 Speaker 1: it continues on, well, let's just hope that schools are 322 00:14:46,960 --> 00:14:50,080 Speaker 1: back in session and able to accommodate students this fall. Yeah, 323 00:14:50,160 --> 00:14:52,160 Speaker 1: good point, Matt, and I guess too. For Cynthia, it 324 00:14:52,200 --> 00:14:55,240 Speaker 1: is important to talk about her overall debtload, and just 325 00:14:55,280 --> 00:14:58,320 Speaker 1: because rates are low and student loan borrowing has become 326 00:14:58,600 --> 00:15:00,840 Speaker 1: way less perilous, you know, when we're talking about interest 327 00:15:00,920 --> 00:15:02,800 Speaker 1: rates essentially cut in half from what they were just 328 00:15:02,840 --> 00:15:05,560 Speaker 1: a couple of years ago. It's still important, Cynthia, to 329 00:15:05,560 --> 00:15:07,320 Speaker 1: be judicious about the debt that you're taking on to 330 00:15:07,320 --> 00:15:09,560 Speaker 1: go to school. You mentioned that you're looking at private 331 00:15:09,600 --> 00:15:12,480 Speaker 1: nursing school. Well, don't take out more than your likely 332 00:15:12,520 --> 00:15:15,280 Speaker 1: first year's salary, and an even better goal is half 333 00:15:15,320 --> 00:15:17,920 Speaker 1: of your first year's salary. And Matt, we talked about 334 00:15:17,960 --> 00:15:20,120 Speaker 1: that a little bit with Alicia Howard back in the 335 00:15:20,120 --> 00:15:22,800 Speaker 1: episode one seventy, just about kind of how you think 336 00:15:22,840 --> 00:15:25,080 Speaker 1: about your student loan debt and what you're taking on, 337 00:15:25,200 --> 00:15:27,240 Speaker 1: and she said that most experts say, don't take out 338 00:15:27,280 --> 00:15:29,760 Speaker 1: more than your likely first year salary, which is kind 339 00:15:29,760 --> 00:15:31,760 Speaker 1: of something that we have agreed with. But of course 340 00:15:31,840 --> 00:15:33,840 Speaker 1: it's even better to take out less than that. It's 341 00:15:33,880 --> 00:15:37,200 Speaker 1: ideal to keep your borrowing to a minimum right as 342 00:15:37,240 --> 00:15:39,640 Speaker 1: little as you possibly can. So, yeah, just make sure 343 00:15:39,720 --> 00:15:42,000 Speaker 1: that's part of what you're factoring in, Cynthia. Even with 344 00:15:42,080 --> 00:15:45,280 Speaker 1: these low rates and getting a degree that's highly sought after, 345 00:15:45,680 --> 00:15:47,600 Speaker 1: that's a fantastic place to be in. But keep your 346 00:15:47,600 --> 00:15:49,480 Speaker 1: debt to a minimum, and best of luck as you 347 00:15:49,520 --> 00:15:53,920 Speaker 1: proceed with your schooling and all the notes of nurses 348 00:15:53,920 --> 00:15:57,160 Speaker 1: and other healthcare professionals. Jewel. Uh, we are thankful for 349 00:15:57,200 --> 00:15:59,320 Speaker 1: all the different nurses and doctors and just everyone who 350 00:15:59,360 --> 00:16:01,520 Speaker 1: is putting them all is out there in harm's way 351 00:16:01,640 --> 00:16:04,200 Speaker 1: to fight the coronavirus, to to fight this health crisis 352 00:16:04,280 --> 00:16:07,040 Speaker 1: that we're currently in. Obviously, they're they're putting their health 353 00:16:07,080 --> 00:16:09,400 Speaker 1: at risk just by their very profession. But because of that, 354 00:16:09,440 --> 00:16:12,240 Speaker 1: they're having to make personal sacrifices as well, right, you know, 355 00:16:12,280 --> 00:16:15,480 Speaker 1: they're having to self isolate from friends, even from family members. 356 00:16:15,480 --> 00:16:17,080 Speaker 1: Are you know I've got a neighbor who's doing that 357 00:16:17,120 --> 00:16:19,480 Speaker 1: as well. Yeah, they just can't be near their spouse, 358 00:16:19,480 --> 00:16:22,680 Speaker 1: their kids. Is terrible, insane. And so again this is 359 00:16:22,800 --> 00:16:24,640 Speaker 1: something we often talk about. We don't really talk about 360 00:16:24,640 --> 00:16:27,840 Speaker 1: the health side of the coronavirus. We normally talk about 361 00:16:27,840 --> 00:16:29,320 Speaker 1: the money side of it because that's that's our show, 362 00:16:29,360 --> 00:16:32,000 Speaker 1: how the money. But you know, certainly we want to 363 00:16:32,000 --> 00:16:34,640 Speaker 1: make sure that we're expressing our gratitude and our appreciation 364 00:16:34,720 --> 00:16:37,560 Speaker 1: and thanks for for all those folks out there. Yeah, completely, 365 00:16:37,600 --> 00:16:39,800 Speaker 1: all right, Matt, Let's get onto our next question. This 366 00:16:39,840 --> 00:16:43,040 Speaker 1: one is about shopping for insurance. Hey, guys, this is 367 00:16:43,120 --> 00:16:47,320 Speaker 1: Donnie from Milwaukee. I have an insurance question for you. 368 00:16:47,800 --> 00:16:52,560 Speaker 1: I recently started a relationship with an independent insurance broker 369 00:16:53,520 --> 00:16:56,080 Speaker 1: a couple of weeks ago. I called them one afternoon 370 00:16:56,720 --> 00:17:00,000 Speaker 1: and received about a dozen quotes within a couple of hours. 371 00:17:00,560 --> 00:17:04,440 Speaker 1: Ended up with significantly better coverage because I had state 372 00:17:04,480 --> 00:17:09,840 Speaker 1: minimums beforehand, while saving money. Other services that they offer 373 00:17:09,920 --> 00:17:11,720 Speaker 1: is that they'll handle any claim that I have in 374 00:17:11,760 --> 00:17:15,760 Speaker 1: the future negotiating with my insurance company. They'll renegotiate and 375 00:17:15,800 --> 00:17:18,920 Speaker 1: get new quotes at the end of the term, and 376 00:17:19,200 --> 00:17:23,680 Speaker 1: they're doing the shopping for me, saving me time and energy. 377 00:17:24,240 --> 00:17:26,639 Speaker 1: So my question for you guys is what's the catch 378 00:17:27,320 --> 00:17:29,440 Speaker 1: Out of all the times that you guys talk about 379 00:17:29,480 --> 00:17:32,840 Speaker 1: insurance on this show, I haven't heard you talk about 380 00:17:33,640 --> 00:17:39,159 Speaker 1: insurance brokers once. Is there anything negative about these companies? 381 00:17:39,800 --> 00:17:43,520 Speaker 1: Interested in what you guys have to say? Cheers man. 382 00:17:43,560 --> 00:17:46,240 Speaker 1: I think Donnie said he just entered into a relationship 383 00:17:46,240 --> 00:17:49,159 Speaker 1: with insurance brokers. I mean he's dating he's inchurch broker. 384 00:17:49,480 --> 00:17:53,760 Speaker 1: You're so childish the question popped up in my mind. 385 00:17:53,800 --> 00:17:56,400 Speaker 1: I'm just gonna say, all right, well, Donnie, first off, 386 00:17:56,560 --> 00:17:58,879 Speaker 1: congratulations if you are dating your interurnch broker, and if 387 00:17:58,880 --> 00:18:01,880 Speaker 1: you're not also a job slashing your insurance costs while 388 00:18:01,920 --> 00:18:04,800 Speaker 1: getting better coverage. And Matt quick question, is it frugal 389 00:18:04,880 --> 00:18:08,200 Speaker 1: or cheap to have that cut rate coverage? Frugal? No, No, 390 00:18:08,320 --> 00:18:10,760 Speaker 1: it's cheap, dang it. Yeah, because those low limits, right 391 00:18:10,760 --> 00:18:13,439 Speaker 1: that Donnie did have on his previous policy could end 392 00:18:13,520 --> 00:18:16,159 Speaker 1: up costing him a whole lot of money by not 393 00:18:16,200 --> 00:18:18,480 Speaker 1: being properly insured when or if he does get into 394 00:18:18,480 --> 00:18:20,320 Speaker 1: an accident. Yeah, certainly you want to make sure that 395 00:18:20,359 --> 00:18:22,840 Speaker 1: you at least have those state limits, but it's worth 396 00:18:22,920 --> 00:18:25,639 Speaker 1: even looking beyond that. I personally have my insurance limits 397 00:18:25,760 --> 00:18:28,639 Speaker 1: way higher than what our state minimums are. But obviously 398 00:18:28,640 --> 00:18:30,600 Speaker 1: that's going to have an effect on my the cost 399 00:18:30,640 --> 00:18:32,679 Speaker 1: of my premiums as well. And so you know, I 400 00:18:32,720 --> 00:18:36,399 Speaker 1: also have my deductibles set pretty high to offset that 401 00:18:36,440 --> 00:18:38,879 Speaker 1: increased cost. So my approach at least is to make 402 00:18:38,880 --> 00:18:41,720 Speaker 1: sure my limits are pretty stinking high to make sure 403 00:18:41,840 --> 00:18:44,359 Speaker 1: that I would be covered in any sort of claim 404 00:18:44,400 --> 00:18:46,600 Speaker 1: against me. Right if if we were to have caused 405 00:18:46,600 --> 00:18:49,800 Speaker 1: a lot of harm to someone's vehicle or their bodily person, right, Like, 406 00:18:49,840 --> 00:18:52,480 Speaker 1: that's the bodily injury portion of the insurance. But at 407 00:18:52,480 --> 00:18:54,800 Speaker 1: the same time, let's keep enough money in that emergency 408 00:18:54,800 --> 00:18:57,080 Speaker 1: fund to cover a higher deductible were you to have 409 00:18:57,119 --> 00:18:59,040 Speaker 1: to pay more out of pocket. Yeah, Matt, and let's 410 00:18:59,040 --> 00:19:01,919 Speaker 1: talk about insurance bro I think we have talked in 411 00:19:01,920 --> 00:19:04,520 Speaker 1: the past about insurance brokers, but we probably don't do 412 00:19:04,560 --> 00:19:07,160 Speaker 1: it often enough. If we have, it's been a while, so, Matt. 413 00:19:07,160 --> 00:19:10,119 Speaker 1: In my past, I have shopped with specific companies by 414 00:19:10,160 --> 00:19:12,639 Speaker 1: calling around. That is probably the lengthiest way to shop 415 00:19:12,680 --> 00:19:15,040 Speaker 1: for insurance, shopping one company at a time. I've also 416 00:19:15,160 --> 00:19:17,919 Speaker 1: used Policy Genius. They've got a service where they have 417 00:19:18,160 --> 00:19:20,439 Speaker 1: people that work there who do the shopping for you, 418 00:19:20,720 --> 00:19:23,240 Speaker 1: similar to an independent agent. And then have also used 419 00:19:23,320 --> 00:19:25,879 Speaker 1: local independent agents to help me shop too. And I 420 00:19:25,920 --> 00:19:28,040 Speaker 1: suggest kind of in all of the above approach to 421 00:19:28,160 --> 00:19:30,520 Speaker 1: in order to get the best rate. And I actually 422 00:19:30,760 --> 00:19:33,879 Speaker 1: randomly found my best rate through a direct approach, calling 423 00:19:33,960 --> 00:19:37,160 Speaker 1: multiple companies, emailing a few different agents at different companies 424 00:19:37,320 --> 00:19:40,320 Speaker 1: and getting quotes that way. Policy Genius and a local 425 00:19:40,359 --> 00:19:43,720 Speaker 1: independent agent were both incredibly helpful in the process though, 426 00:19:43,880 --> 00:19:46,240 Speaker 1: in helping get me enough quotes in front of my 427 00:19:46,280 --> 00:19:48,320 Speaker 1: eyes to look at so that I could make the 428 00:19:48,320 --> 00:19:52,560 Speaker 1: best choice for great coverage, affordable rates. And yeah, just 429 00:19:52,600 --> 00:19:54,560 Speaker 1: kind of getting the best of all of those worlds. 430 00:19:54,720 --> 00:19:58,280 Speaker 1: But independent agents, I would say, are definitely a great 431 00:19:58,320 --> 00:20:01,280 Speaker 1: resource and one that people should tap when they're shopping 432 00:20:01,280 --> 00:20:03,359 Speaker 1: for insurance. Yeah, so, Jo, let's ahead talk about some 433 00:20:03,400 --> 00:20:06,560 Speaker 1: the benefits of independent agents and of insurance brokers, which, 434 00:20:06,600 --> 00:20:09,720 Speaker 1: by the way, those terms are used fairly interchangeably. Uh. 435 00:20:09,760 --> 00:20:13,399 Speaker 1: For you out there looking for insurance, it means about 436 00:20:13,400 --> 00:20:15,680 Speaker 1: the same thing to you, right Like, typically a broker 437 00:20:15,760 --> 00:20:18,480 Speaker 1: is representing you like they're searching for a policy for you, 438 00:20:18,920 --> 00:20:21,439 Speaker 1: whereas an independent agent there's still a little bit more 439 00:20:21,480 --> 00:20:24,160 Speaker 1: beholden to the insurance companies. They just have multiple insurance 440 00:20:24,200 --> 00:20:27,280 Speaker 1: companies that they work with. But for you looking for insurance, 441 00:20:27,359 --> 00:20:29,320 Speaker 1: it essentially means the same thing. You're able to easily 442 00:20:29,320 --> 00:20:31,959 Speaker 1: get quotes for multiple companies. Just like you said, Donnie, 443 00:20:32,119 --> 00:20:34,080 Speaker 1: that's gonna save you a lot of time and money. 444 00:20:34,119 --> 00:20:36,240 Speaker 1: Just like you mentioned again, everything you said, it is true. 445 00:20:36,240 --> 00:20:37,960 Speaker 1: They make it easier for you to shop and to 446 00:20:38,000 --> 00:20:40,520 Speaker 1: save every single year. They can help when filing a 447 00:20:40,600 --> 00:20:42,680 Speaker 1: claim or helping you decide whether or not you should 448 00:20:42,680 --> 00:20:45,359 Speaker 1: even file a claim. And yes, you can also keep 449 00:20:45,440 --> 00:20:48,080 Speaker 1: that agent even if you switch insurers, because there's gonna 450 00:20:48,160 --> 00:20:51,440 Speaker 1: be oftentimes a lot of different insurers who they recommend 451 00:20:51,440 --> 00:20:53,440 Speaker 1: and who they work with. And because they know these 452 00:20:53,440 --> 00:20:56,080 Speaker 1: different companies, these different insurers and the policies they offer, 453 00:20:56,400 --> 00:20:58,400 Speaker 1: they can also be a really helpful resource and can 454 00:20:58,400 --> 00:21:01,040 Speaker 1: help you learn and understand your SEE on a level 455 00:21:01,080 --> 00:21:03,679 Speaker 1: that you maybe didn't understand before. And so for you, 456 00:21:03,720 --> 00:21:05,840 Speaker 1: if you value having a phone number where you can 457 00:21:05,840 --> 00:21:07,600 Speaker 1: call and talk to your your agent and they can 458 00:21:07,600 --> 00:21:09,760 Speaker 1: explain your policy to you, where they can check in 459 00:21:09,840 --> 00:21:12,400 Speaker 1: on something if you have a question, uh yeah, going 460 00:21:12,440 --> 00:21:15,000 Speaker 1: with an independent agents or a broker might definitely be 461 00:21:15,040 --> 00:21:17,280 Speaker 1: the way to go. Yeah, having an actual agent that 462 00:21:17,320 --> 00:21:19,440 Speaker 1: you can email and go back and forth with, Matt 463 00:21:19,960 --> 00:21:21,760 Speaker 1: is so helpful as opposed to calling like a one 464 00:21:22,320 --> 00:21:24,560 Speaker 1: number for an insurance company to report something or to 465 00:21:24,600 --> 00:21:26,800 Speaker 1: ask a question. It is really nice to have an 466 00:21:26,800 --> 00:21:29,600 Speaker 1: agent that's knowledgeable in your corner. And an independent agent 467 00:21:29,640 --> 00:21:32,680 Speaker 1: in particular is really helpful because they want to get 468 00:21:32,720 --> 00:21:35,080 Speaker 1: you the best rate so that you continue to do 469 00:21:35,119 --> 00:21:38,080 Speaker 1: business with them. So yeah, but what is the catch? 470 00:21:38,240 --> 00:21:40,440 Speaker 1: Donnie asked if there are any catches? And I would 471 00:21:40,480 --> 00:21:41,919 Speaker 1: say the only thing to keep in mind is that 472 00:21:41,960 --> 00:21:45,200 Speaker 1: those independent agents and brokers are typically paid via commission 473 00:21:45,440 --> 00:21:48,119 Speaker 1: otherwise there's no catch. So shop with an independent agent 474 00:21:48,200 --> 00:21:50,160 Speaker 1: or broker that will give you quotes from a lot 475 00:21:50,200 --> 00:21:53,679 Speaker 1: of different insurers. Maybe shop with a couple of different 476 00:21:53,720 --> 00:21:56,119 Speaker 1: local independent agents and if you like their vibe and 477 00:21:56,119 --> 00:21:58,159 Speaker 1: they can save you money, which it sounds like that 478 00:21:58,280 --> 00:22:00,840 Speaker 1: was the case for you, then totally go for Independent 479 00:22:00,880 --> 00:22:03,960 Speaker 1: agents are often neglected because we see commercials for car 480 00:22:03,960 --> 00:22:06,239 Speaker 1: insurance companies with cute lizards on them and stuff like that, 481 00:22:06,400 --> 00:22:08,240 Speaker 1: and we just call the one hundred number to see 482 00:22:08,240 --> 00:22:11,000 Speaker 1: if we can save ten percent as they claim. But 483 00:22:11,040 --> 00:22:14,000 Speaker 1: often times an independent insurance agent, because they're able to 484 00:22:14,000 --> 00:22:16,639 Speaker 1: shop with so many different insurance companies at one time, 485 00:22:17,000 --> 00:22:18,639 Speaker 1: you could save a heck of a lot more than 486 00:22:18,680 --> 00:22:21,800 Speaker 1: that potentially by by going that route. So yeah, we 487 00:22:21,840 --> 00:22:24,040 Speaker 1: would say, get some quotes and see what that local 488 00:22:24,080 --> 00:22:26,359 Speaker 1: independent agent can offer you. It can't hurt at the 489 00:22:26,400 --> 00:22:29,320 Speaker 1: very least, and definitely don't just go by ensure based 490 00:22:29,359 --> 00:22:31,639 Speaker 1: on their commercials. Right. I feel like in car insurance 491 00:22:31,680 --> 00:22:34,000 Speaker 1: commercials there are some of the better commercials out there. 492 00:22:34,000 --> 00:22:37,240 Speaker 1: I'm thinking of Mayhem, right, like, like you got that company, 493 00:22:37,720 --> 00:22:44,520 Speaker 1: You've got the you got that guy, get the state farm. Yeah, 494 00:22:44,680 --> 00:22:46,359 Speaker 1: you got all that, and so I mean, if if 495 00:22:46,400 --> 00:22:48,720 Speaker 1: we drank beer based on cool commercials, we wouldn't be 496 00:22:48,800 --> 00:22:51,840 Speaker 1: drinking good beer either. You know that's so true. We'd 497 00:22:51,880 --> 00:22:54,280 Speaker 1: be to happen the Rockies. All right, we've got a 498 00:22:54,280 --> 00:22:56,639 Speaker 1: couple more questions. We're gonna take one about savings bonds 499 00:22:56,680 --> 00:22:58,480 Speaker 1: as well as whether or not you should go to 500 00:22:58,560 --> 00:23:01,159 Speaker 1: law school when we get to those right after this break. 501 00:23:10,440 --> 00:23:11,639 Speaker 1: All right, now we're back in the break. We got 502 00:23:11,680 --> 00:23:13,840 Speaker 1: an interesting question about kind of where to go from 503 00:23:13,880 --> 00:23:15,400 Speaker 1: your future and if law school should be a part 504 00:23:15,400 --> 00:23:16,520 Speaker 1: of that. But before we get to that, we've got 505 00:23:16,520 --> 00:23:20,120 Speaker 1: a question from a listener about buying saving sponds. Hi, 506 00:23:20,280 --> 00:23:22,960 Speaker 1: this is Janine from Maryland. I have a question about 507 00:23:22,960 --> 00:23:26,760 Speaker 1: gifting savings bonds. With my daughter's first communion coming up, 508 00:23:26,880 --> 00:23:29,680 Speaker 1: my in laws have asked about gifting her a savings bond. 509 00:23:30,240 --> 00:23:32,919 Speaker 1: The concept seems antiquated to me, but I don't know 510 00:23:32,960 --> 00:23:37,440 Speaker 1: a good substitute to suggest they already very graciously contribute 511 00:23:37,440 --> 00:23:40,560 Speaker 1: to her. Five nine we set up is the return 512 00:23:40,600 --> 00:23:43,719 Speaker 1: over thirty years worth the hassle of keeping the certificate 513 00:23:43,800 --> 00:23:47,639 Speaker 1: and remembering she has it. I'm still annoyingly lugging around 514 00:23:47,680 --> 00:23:50,919 Speaker 1: my husband and my childhood saving sponds. I don't want 515 00:23:50,920 --> 00:23:53,040 Speaker 1: to saddle my daughter with the same dilemma if there 516 00:23:53,119 --> 00:23:57,960 Speaker 1: is a better alternative these days. Thank you savings bonds, Joel. 517 00:23:58,000 --> 00:24:00,359 Speaker 1: Have you ever had a savings bond? Never? Nobody was 518 00:24:00,359 --> 00:24:03,439 Speaker 1: looking out for me like you Need's parents are for 519 00:24:03,480 --> 00:24:05,960 Speaker 1: her kids. Same here. I never got a savings bond 520 00:24:06,160 --> 00:24:09,000 Speaker 1: for my first communion. Well, I actually did grow up Catholic. 521 00:24:09,000 --> 00:24:10,719 Speaker 1: Did you know that I didn't know that about you. Well, 522 00:24:10,720 --> 00:24:12,680 Speaker 1: it's true, but yeah, no savings bond in my court. 523 00:24:13,200 --> 00:24:16,200 Speaker 1: But Janine, since your daughter is already getting a college 524 00:24:16,200 --> 00:24:18,800 Speaker 1: savings boost, a savings bond could be a good fit 525 00:24:18,880 --> 00:24:20,960 Speaker 1: for her. There are two different kinds of bonds out there, 526 00:24:21,359 --> 00:24:24,640 Speaker 1: Series E and Series I. These I bonds they pay 527 00:24:24,640 --> 00:24:27,040 Speaker 1: a rates at a low fixed rates than plus the 528 00:24:27,119 --> 00:24:29,840 Speaker 1: rate of inflation, and E bonds they earn a fixed 529 00:24:29,920 --> 00:24:32,520 Speaker 1: rate of interest. They both pay out a higher rates 530 00:24:32,800 --> 00:24:36,520 Speaker 1: of two point two and three point five three percent, respectively, 531 00:24:36,880 --> 00:24:39,840 Speaker 1: but they also can't be touched for twenty years if 532 00:24:39,880 --> 00:24:42,080 Speaker 1: you want to score that higher rate. Yeah, so it's 533 00:24:42,119 --> 00:24:44,800 Speaker 1: higher than an online savings account, but it's also untouchable 534 00:24:44,840 --> 00:24:47,919 Speaker 1: for twenty years. In order to get that premium rate, right, 535 00:24:48,200 --> 00:24:50,399 Speaker 1: and Janine, it's important to bring up that five nine 536 00:24:50,400 --> 00:24:53,480 Speaker 1: account real quickly due to the inflexibility of these savings 537 00:24:53,560 --> 00:24:56,320 Speaker 1: bonds and the pretty low interest rate when we're comparing 538 00:24:56,359 --> 00:24:58,639 Speaker 1: to investing over the long term right over to that 539 00:24:58,640 --> 00:25:02,200 Speaker 1: twenty year period. Saving bonds are not our first recommendation. 540 00:25:02,480 --> 00:25:04,600 Speaker 1: You mentioned how your in laws are contributing to your 541 00:25:04,680 --> 00:25:08,320 Speaker 1: child's five account, but where are they in their contribution limits? 542 00:25:08,359 --> 00:25:11,480 Speaker 1: With that, we'd much prefer to see your five twenty 543 00:25:11,600 --> 00:25:14,119 Speaker 1: nine maxed out, as the money in that account can 544 00:25:14,119 --> 00:25:15,920 Speaker 1: be invested and it can grow at a much higher 545 00:25:16,040 --> 00:25:18,680 Speaker 1: rate over the years. Right. If it's invested in low cost, 546 00:25:18,760 --> 00:25:22,320 Speaker 1: widely diversified index funds, that should blow savings bonds out 547 00:25:22,320 --> 00:25:25,560 Speaker 1: of the water. And most states inside of their five 548 00:25:25,600 --> 00:25:29,040 Speaker 1: twenty nine plans have low cost and broadly diversified investment 549 00:25:29,080 --> 00:25:32,000 Speaker 1: options now, so yeah, if you have that inside of 550 00:25:32,000 --> 00:25:34,720 Speaker 1: your states plan, that's a better place to put that 551 00:25:34,800 --> 00:25:38,760 Speaker 1: money for your child's future than into savings bonds. And 552 00:25:38,760 --> 00:25:40,760 Speaker 1: it sounds like part of the reason that they want 553 00:25:40,840 --> 00:25:42,960 Speaker 1: to give these savings bonds is maybe they want something 554 00:25:43,080 --> 00:25:45,760 Speaker 1: tangible to give, right, this is our first communion they 555 00:25:45,840 --> 00:25:47,560 Speaker 1: want to be able to give her something that's a 556 00:25:47,600 --> 00:25:51,000 Speaker 1: little more I don't know, maybe like packageable versus just 557 00:25:51,040 --> 00:25:54,520 Speaker 1: additional funds in the UH. And so I get that 558 00:25:54,560 --> 00:25:57,680 Speaker 1: if if they're not really wanting to do they're wanting 559 00:25:57,680 --> 00:26:00,360 Speaker 1: to do the savings bonds. But if the grandparents are 560 00:26:00,480 --> 00:26:03,840 Speaker 1: comfortable with gifting you that money, I think maybe an 561 00:26:03,840 --> 00:26:06,000 Speaker 1: even better scenario is to put that money in your 562 00:26:06,000 --> 00:26:09,879 Speaker 1: own rath Ira accounts, assuming you're eligible and you're not 563 00:26:09,920 --> 00:26:12,879 Speaker 1: already maxing those outs, Investing those funds over the next 564 00:26:13,240 --> 00:26:16,320 Speaker 1: it's in the fifteen years would be I think ideal. Right, 565 00:26:16,320 --> 00:26:19,159 Speaker 1: And of course you'll want to keep detailed records, but 566 00:26:19,280 --> 00:26:22,240 Speaker 1: this could be a great option to grow that money 567 00:26:22,280 --> 00:26:24,280 Speaker 1: even more. But of course you're gonna want to have 568 00:26:24,320 --> 00:26:26,000 Speaker 1: your in law's blessing if you were going to go 569 00:26:26,080 --> 00:26:28,960 Speaker 1: that route. But Joel, we love rath Ira so much 570 00:26:29,000 --> 00:26:30,439 Speaker 1: and for a lot of people, I could see this 571 00:26:30,480 --> 00:26:32,520 Speaker 1: being a great solution. Yeah, And I know that can 572 00:26:32,520 --> 00:26:35,880 Speaker 1: be an awkward conversation if you know the grandparents want 573 00:26:35,920 --> 00:26:37,560 Speaker 1: to give something and you say, well, give it to me, 574 00:26:37,600 --> 00:26:40,119 Speaker 1: I'll put it in my wrath and how much you 575 00:26:40,119 --> 00:26:43,560 Speaker 1: give me the money exactly? But if you talk about 576 00:26:43,560 --> 00:26:46,199 Speaker 1: it well, I think maybe they can understand that the 577 00:26:46,240 --> 00:26:49,280 Speaker 1: benefit of putting it in a wrath, investing for your 578 00:26:49,280 --> 00:26:51,800 Speaker 1: future but also your kid's future is almost like the 579 00:26:51,840 --> 00:26:54,240 Speaker 1: perfect balance, especially because you don't need the money probably 580 00:26:54,280 --> 00:26:56,639 Speaker 1: for eighteen years from now, and you already do have 581 00:26:56,720 --> 00:26:59,760 Speaker 1: money in the account. Having that money put inside of 582 00:26:59,800 --> 00:27:03,199 Speaker 1: your wrath and being able to withdraw those contributions at 583 00:27:03,240 --> 00:27:05,919 Speaker 1: any point in time with no tax or penalty associated 584 00:27:05,960 --> 00:27:07,800 Speaker 1: with it, that is such a perfect vehicle to be 585 00:27:07,800 --> 00:27:10,920 Speaker 1: able to have at your disposal for your kid's use 586 00:27:11,280 --> 00:27:14,000 Speaker 1: and you know when it comes to college time and Matt. 587 00:27:14,119 --> 00:27:16,919 Speaker 1: If that isn't an option, if the five nine account 588 00:27:16,960 --> 00:27:19,600 Speaker 1: is already kind of filled to the brim and rath 589 00:27:19,680 --> 00:27:21,639 Speaker 1: iras are not an option, then of course you can 590 00:27:21,640 --> 00:27:24,760 Speaker 1: set up a custodial brokerage account. Again, this would allow 591 00:27:24,760 --> 00:27:27,280 Speaker 1: those funds to grow at a higher rate than a 592 00:27:27,480 --> 00:27:29,600 Speaker 1: savings bond would, right, but there is also more risk 593 00:27:29,640 --> 00:27:31,639 Speaker 1: because you're investing in the stock market as opposed to 594 00:27:31,680 --> 00:27:34,800 Speaker 1: getting that fixed bond return, and at our current capital 595 00:27:34,840 --> 00:27:37,520 Speaker 1: gains tax rate. As a young adult, your child could 596 00:27:37,520 --> 00:27:40,120 Speaker 1: potentially make withdraws and pay zero percent of her income 597 00:27:40,160 --> 00:27:43,560 Speaker 1: in taxes if she makes utter forty a year. Again, 598 00:27:43,560 --> 00:27:46,800 Speaker 1: this is at today's capital gains rates. But brokerage accounts 599 00:27:46,840 --> 00:27:49,880 Speaker 1: are pretty tax friendly in and of themselves, and especially 600 00:27:49,960 --> 00:27:52,119 Speaker 1: for low income earners. But one thing that is important 601 00:27:52,119 --> 00:27:55,399 Speaker 1: to notice that both savings, bonds and brokerage accounts count 602 00:27:55,480 --> 00:27:58,040 Speaker 1: when you're applying for financial aid when you're filling out 603 00:27:58,040 --> 00:28:00,080 Speaker 1: your FATSA. So either way you slice it, if you 604 00:28:00,119 --> 00:28:02,600 Speaker 1: do choose one of those vehicles, it will inhibit the 605 00:28:02,640 --> 00:28:05,679 Speaker 1: potential financial aid that your child could receive when she 606 00:28:05,760 --> 00:28:07,600 Speaker 1: goes off to college. And of course those are given 607 00:28:07,640 --> 00:28:09,720 Speaker 1: today's rules, right, like who knows what things are gonna 608 00:28:09,720 --> 00:28:12,120 Speaker 1: look like in fifteen years from now. But bytom line, 609 00:28:12,160 --> 00:28:14,119 Speaker 1: I think all of these are fairly good options. Right 610 00:28:14,119 --> 00:28:17,800 Speaker 1: We're talking about money that's is a gift, and you know, 611 00:28:17,960 --> 00:28:19,960 Speaker 1: like were trying to be smart and efficient with our money, 612 00:28:20,080 --> 00:28:22,399 Speaker 1: making sure that we're doing wise things and growing in 613 00:28:22,440 --> 00:28:24,280 Speaker 1: as well as we can. But at the same time, 614 00:28:24,320 --> 00:28:26,800 Speaker 1: we don't want to overthink and over analyze, uh, in 615 00:28:26,840 --> 00:28:29,560 Speaker 1: particular something that's that's arriving as a gift like this, 616 00:28:29,640 --> 00:28:31,520 Speaker 1: and so you know what you know in the end, 617 00:28:31,600 --> 00:28:34,080 Speaker 1: if the parents insist on a savings bond, Like, let 618 00:28:34,160 --> 00:28:36,240 Speaker 1: them do the savings bond. You know, it's it's their money. 619 00:28:36,440 --> 00:28:38,280 Speaker 1: This isn't money that you're counting on. This is sort 620 00:28:38,280 --> 00:28:40,520 Speaker 1: of like the extra little bonus. And if that's the case, 621 00:28:40,560 --> 00:28:42,600 Speaker 1: I think a savings bond, you know, in the end, 622 00:28:42,600 --> 00:28:44,840 Speaker 1: will come full circle. Could work out for your daughter 623 00:28:44,880 --> 00:28:47,560 Speaker 1: for sure. Yeah, and we love to optimize, Matt, but yeah, 624 00:28:47,560 --> 00:28:50,160 Speaker 1: when you're talking about a gift, it's hard to overoptimize 625 00:28:50,160 --> 00:28:51,880 Speaker 1: that because you have to be thankful for what the 626 00:28:51,920 --> 00:28:55,560 Speaker 1: grandparents are contributing, which is just incredibly kind to them. 627 00:28:55,800 --> 00:28:57,800 Speaker 1: Uh So, yeah, Janina, hope that helped. All right, Matt, 628 00:28:57,880 --> 00:29:00,160 Speaker 1: Let's get on to the next question. This one is 629 00:29:00,160 --> 00:29:02,640 Speaker 1: from a listener who's trying to optimize his future and 630 00:29:02,640 --> 00:29:06,760 Speaker 1: trying to decide what profession he gravitates towards. Hello, my 631 00:29:06,840 --> 00:29:09,960 Speaker 1: name is Cole When. I'm from Huntsville, Alabama. I'm a 632 00:29:10,000 --> 00:29:12,800 Speaker 1: twenty year old college student finishing up a degree in 633 00:29:12,840 --> 00:29:17,600 Speaker 1: history and philosophy. Obviously, I'm aware that humanities majors don't 634 00:29:17,640 --> 00:29:20,720 Speaker 1: have as much demand in the job market essay engineer 635 00:29:20,840 --> 00:29:23,760 Speaker 1: or something along those lines. I've thought about going to 636 00:29:23,840 --> 00:29:27,160 Speaker 1: law school to become an environmental lawyer, but I'm worried 637 00:29:27,200 --> 00:29:30,040 Speaker 1: about the commitment as well as the financial side of it. 638 00:29:30,600 --> 00:29:33,320 Speaker 1: Environmental lawyers, from what I know, don't make as much 639 00:29:33,360 --> 00:29:36,840 Speaker 1: money as a corporate lawyer. Law school costs a lot 640 00:29:36,880 --> 00:29:38,880 Speaker 1: of money, and I've never been in debt or had 641 00:29:38,920 --> 00:29:42,320 Speaker 1: student loans before, so that's pretty scary to me. Another 642 00:29:42,400 --> 00:29:44,640 Speaker 1: issue is that I'm not entirely sure if I even 643 00:29:44,680 --> 00:29:47,120 Speaker 1: want to go. I've been burned out of school for 644 00:29:47,120 --> 00:29:50,200 Speaker 1: a little while now, and I'm worried I just won't 645 00:29:50,240 --> 00:29:53,680 Speaker 1: be able to muster through it. However, I've always enjoyed 646 00:29:53,720 --> 00:29:56,480 Speaker 1: working with my hands and building things, so my plan 647 00:29:56,600 --> 00:29:59,920 Speaker 1: B is to pursue a trade job, specifically an electrician job. 648 00:30:00,560 --> 00:30:03,080 Speaker 1: To me, it seems that this job fulfill my desire 649 00:30:03,120 --> 00:30:06,000 Speaker 1: to work with my hands, provide a stable income, get 650 00:30:06,040 --> 00:30:09,080 Speaker 1: me into the workforce, not put me in massive amounts 651 00:30:09,080 --> 00:30:11,840 Speaker 1: of debt, and over a select number of years, maybe 652 00:30:12,040 --> 00:30:15,560 Speaker 1: make as much as an environmental lawyer would. So I'm 653 00:30:15,600 --> 00:30:18,240 Speaker 1: curious what y'all's take is on this. Should I go 654 00:30:18,320 --> 00:30:21,400 Speaker 1: to law school despite being iffy about it, or pursue 655 00:30:21,480 --> 00:30:24,680 Speaker 1: possibly a lower paying job and not get put into debt. 656 00:30:25,080 --> 00:30:28,800 Speaker 1: I'm looking forward to your response. Thanks. Cold. That's a 657 00:30:28,800 --> 00:30:30,520 Speaker 1: great question, man, And you know what I gotta say, 658 00:30:30,560 --> 00:30:33,600 Speaker 1: first and foremost, I appreciate your desire to find employment 659 00:30:33,640 --> 00:30:36,760 Speaker 1: that resonates with you and that you're not just aiming 660 00:30:36,760 --> 00:30:39,160 Speaker 1: for a job with the biggest paycheck. Matt. You know, 661 00:30:39,200 --> 00:30:41,200 Speaker 1: when I was kind of deciding what I wanted to 662 00:30:41,200 --> 00:30:43,440 Speaker 1: do with the rest of my life, I chose broadcast media, 663 00:30:43,520 --> 00:30:46,160 Speaker 1: not because it was like the highest paying career out there. 664 00:30:46,320 --> 00:30:48,760 Speaker 1: In fact, it wasn't. I think I actually kind of 665 00:30:48,800 --> 00:30:50,080 Speaker 1: chose it because I could wear jeans and a T 666 00:30:50,120 --> 00:30:53,360 Speaker 1: shirt every day. Bad bad choice that wasn't really a 667 00:30:53,360 --> 00:30:56,880 Speaker 1: good reason. Maybe you over prioritize the lifestyle a touch 668 00:30:57,000 --> 00:30:59,360 Speaker 1: right there. Yeah, But ultimately it has been great, Like 669 00:30:59,400 --> 00:31:02,240 Speaker 1: I've really enjoyed it, even though your income potential is 670 00:31:02,240 --> 00:31:04,360 Speaker 1: is capped compared to a lot of other fields I 671 00:31:04,360 --> 00:31:06,760 Speaker 1: could have chosen. It was really a choice about, you know, 672 00:31:06,840 --> 00:31:09,040 Speaker 1: my heart and what I really wanted to do in life, 673 00:31:09,080 --> 00:31:11,840 Speaker 1: as opposed to just what would give me the biggest paycheck. 674 00:31:11,960 --> 00:31:13,640 Speaker 1: And I hear the same thing in Cole's question, like 675 00:31:13,680 --> 00:31:15,720 Speaker 1: he seems to really be wanting to prioritize something that 676 00:31:15,760 --> 00:31:17,479 Speaker 1: he can enjoy doing for the rest of his life. 677 00:31:17,520 --> 00:31:19,520 Speaker 1: And because work is such a big part of our lives, 678 00:31:19,840 --> 00:31:22,000 Speaker 1: I think that's really important. I couldn't agree more. Man. 679 00:31:22,080 --> 00:31:24,719 Speaker 1: And something else to consider is that in our economy, man, like, 680 00:31:24,800 --> 00:31:27,000 Speaker 1: the people who are in the worst place are the 681 00:31:27,000 --> 00:31:29,960 Speaker 1: ones who only get a partial degree, right. That's because 682 00:31:30,000 --> 00:31:33,160 Speaker 1: they don't have the increased earning power that a degree provides, 683 00:31:33,240 --> 00:31:35,920 Speaker 1: but there are stuck still with that increased level of 684 00:31:36,000 --> 00:31:39,360 Speaker 1: student debt. So cool. If you're not excited about law 685 00:31:39,400 --> 00:31:42,040 Speaker 1: school and you know you're tired of school in general, like, 686 00:31:42,080 --> 00:31:44,360 Speaker 1: you could easily end up in that boat. And that 687 00:31:44,480 --> 00:31:46,760 Speaker 1: is something that we would hate to see. Yeah, exactly, 688 00:31:46,840 --> 00:31:48,760 Speaker 1: Debt without the degree to show for it, without the 689 00:31:48,760 --> 00:31:51,000 Speaker 1: increased earning potential is certainly a bad place to find 690 00:31:51,000 --> 00:31:53,440 Speaker 1: yourself in. So Cole, what about trying your hand as 691 00:31:53,440 --> 00:31:56,120 Speaker 1: an electrician now, like, as you're in school even and 692 00:31:56,120 --> 00:31:58,440 Speaker 1: then as the first job after you graduate. You can 693 00:31:58,480 --> 00:32:02,240 Speaker 1: earn money while you're learning through an apprenticeship program. Check 694 00:32:02,240 --> 00:32:04,800 Speaker 1: out websites like I e c I dot org and 695 00:32:04,920 --> 00:32:08,400 Speaker 1: i b ew dot org. Those are both electrician trade 696 00:32:08,480 --> 00:32:10,680 Speaker 1: organizations that can help guide you and hook you up 697 00:32:10,720 --> 00:32:13,760 Speaker 1: with a helpful apprenticeship near where you are, and then 698 00:32:13,800 --> 00:32:16,640 Speaker 1: you'll likely want to work for a reputable local electrician 699 00:32:16,640 --> 00:32:18,760 Speaker 1: for a few years to learn the trade before striking 700 00:32:18,760 --> 00:32:21,280 Speaker 1: out on your own. But I love that you'll have 701 00:32:21,320 --> 00:32:23,240 Speaker 1: the ability to be able to own your own company 702 00:32:23,320 --> 00:32:26,400 Speaker 1: someday if you do go that route. That's huge for 703 00:32:26,440 --> 00:32:29,560 Speaker 1: your future earning potential. That's huge for your ability to 704 00:32:30,000 --> 00:32:32,240 Speaker 1: you hire other people and have them work for you 705 00:32:32,600 --> 00:32:35,000 Speaker 1: and be able to create the lifestyle of your choosing 706 00:32:35,040 --> 00:32:38,120 Speaker 1: owning your own business is a game changer in this country, 707 00:32:38,200 --> 00:32:40,920 Speaker 1: and and that is just so much easier if you 708 00:32:41,000 --> 00:32:43,200 Speaker 1: gain the skills and you become an electrician. At the 709 00:32:43,200 --> 00:32:46,960 Speaker 1: same time, you're completely eliminating the debt factor altogether too, Juel. 710 00:32:47,080 --> 00:32:49,480 Speaker 1: Unnecessary student loan debt is such a bummer, and so 711 00:32:49,560 --> 00:32:52,600 Speaker 1: taking the path of an electrician first man, that is 712 00:32:52,680 --> 00:32:55,719 Speaker 1: by far the least risky route. You know, you can 713 00:32:55,760 --> 00:32:58,040 Speaker 1: always apply for law school a year or two down 714 00:32:58,080 --> 00:33:00,360 Speaker 1: the road if you know the electrical work that doesn't 715 00:33:00,360 --> 00:33:02,080 Speaker 1: seem to be the right fit for you. And on 716 00:33:02,160 --> 00:33:03,800 Speaker 1: top of that, because of the fact that you have 717 00:33:03,920 --> 00:33:06,600 Speaker 1: zero debt right now, you are in a perfect position 718 00:33:06,840 --> 00:33:09,000 Speaker 1: to give us a go right to try something that 719 00:33:09,040 --> 00:33:11,800 Speaker 1: maybe you thought you would never have tried before. But 720 00:33:11,880 --> 00:33:13,920 Speaker 1: the more you think about it, the more you realize that, man, 721 00:33:14,000 --> 00:33:17,400 Speaker 1: my skills really do lend themselves to working with my hands, 722 00:33:17,400 --> 00:33:20,000 Speaker 1: maybe to managing other people, to to owning my own business. 723 00:33:20,240 --> 00:33:21,880 Speaker 1: If that really sounds good to you, and you're here 724 00:33:21,920 --> 00:33:25,320 Speaker 1: a lot more excited about that as compared to pursuing law, 725 00:33:25,360 --> 00:33:27,880 Speaker 1: whether it is corporate law or you know, maybe what 726 00:33:28,000 --> 00:33:29,760 Speaker 1: seems a little bit more appealing to you, which is 727 00:33:29,880 --> 00:33:33,160 Speaker 1: environmental law. Well, by all means, take the electrician path first. Yeah, 728 00:33:33,320 --> 00:33:36,280 Speaker 1: the flexibility that we have as human beings when we 729 00:33:36,320 --> 00:33:38,400 Speaker 1: have minimized debt or when we don't have any debt 730 00:33:38,440 --> 00:33:41,000 Speaker 1: at all. It's just astounding how much more we have 731 00:33:41,120 --> 00:33:44,560 Speaker 1: in our control because we don't have ongoing debt obligations 732 00:33:44,600 --> 00:33:45,880 Speaker 1: that we have to take care of. And so many 733 00:33:45,920 --> 00:33:48,760 Speaker 1: people these days sadly graduate with so much student loan 734 00:33:48,760 --> 00:33:51,120 Speaker 1: debt that they have to go out and get the 735 00:33:51,120 --> 00:33:53,240 Speaker 1: first job that's offered to them. And Cole is not 736 00:33:53,320 --> 00:33:55,680 Speaker 1: in that position. He really can dictate his own future. 737 00:33:55,920 --> 00:33:58,360 Speaker 1: He doesn't have massive student loans that will have to 738 00:33:58,400 --> 00:34:01,000 Speaker 1: start paying off immediately, and so it gives him this 739 00:34:01,040 --> 00:34:03,480 Speaker 1: flexibility to be able to pursue something that he would 740 00:34:03,480 --> 00:34:05,640 Speaker 1: prefer and at least give it a shot. And I 741 00:34:05,680 --> 00:34:07,720 Speaker 1: love that too, that you can check this out first, 742 00:34:07,720 --> 00:34:09,719 Speaker 1: give it a trial run, and if it doesn't work out, 743 00:34:09,840 --> 00:34:12,400 Speaker 1: or if it's not as interesting of work to you 744 00:34:12,480 --> 00:34:14,960 Speaker 1: as you thought it might be, then you can pursue 745 00:34:15,239 --> 00:34:18,160 Speaker 1: that legal education further down the road. So Coal, best 746 00:34:18,160 --> 00:34:20,120 Speaker 1: of luck to you as you kind of move forward 747 00:34:20,440 --> 00:34:22,440 Speaker 1: and you're thinking through this, and I hope that you 748 00:34:22,480 --> 00:34:24,520 Speaker 1: know our thoughts were a little helpful. And Gel, that's 749 00:34:24,520 --> 00:34:26,640 Speaker 1: gonna be it for questions. Let's go ahead and direct 750 00:34:26,680 --> 00:34:28,839 Speaker 1: the conversation back to our beer. This episode, you and 751 00:34:28,880 --> 00:34:31,840 Speaker 1: I are sharing the seven fifty million lead bottle of 752 00:34:31,960 --> 00:34:35,560 Speaker 1: Nightmare on Brett, which is this beer by Crooked Stave 753 00:34:36,040 --> 00:34:38,960 Speaker 1: Artisan Beer Project. These guys are out of Denver, Colorado. 754 00:34:39,280 --> 00:34:43,080 Speaker 1: This is one of those good, good beers. What were 755 00:34:43,080 --> 00:34:45,520 Speaker 1: your thoughts on this one? Name? Yeah, man, it's extra special, 756 00:34:45,560 --> 00:34:47,920 Speaker 1: that's for sure. Crooked Stave. I don't think I've ever 757 00:34:48,000 --> 00:34:50,640 Speaker 1: had a bad beer from them. This one, in particular 758 00:34:50,880 --> 00:34:53,840 Speaker 1: is probably their finest beer that I've ever had. There's 759 00:34:53,880 --> 00:34:55,880 Speaker 1: one other beer that they made it's a sour cherry 760 00:34:55,920 --> 00:34:59,560 Speaker 1: ale that's absolutely spectacular too, but this one rivals at 761 00:34:59,560 --> 00:35:01,600 Speaker 1: for sure. I feel like this beer had some some 762 00:35:01,719 --> 00:35:05,440 Speaker 1: kind of toasted stout like notes to go along with 763 00:35:05,480 --> 00:35:08,920 Speaker 1: like some tart berry cherry notes as well. And by 764 00:35:08,920 --> 00:35:11,320 Speaker 1: the way, it's called Nightmare on bread and that's because 765 00:35:11,400 --> 00:35:14,399 Speaker 1: they use a strain of bretton amiases which helps kind 766 00:35:14,440 --> 00:35:16,360 Speaker 1: of give the beer a little bit of that sour, 767 00:35:16,440 --> 00:35:18,759 Speaker 1: funky taste. And I feel like the whiskey barrels just 768 00:35:18,840 --> 00:35:21,480 Speaker 1: finish it off perfectly. It is truly a unique beer 769 00:35:21,560 --> 00:35:24,399 Speaker 1: and and also an excellent beer at the same time. Yeah, 770 00:35:24,440 --> 00:35:27,040 Speaker 1: that's right. It is aged in whiskey barrels. Man specifically, 771 00:35:27,320 --> 00:35:30,520 Speaker 1: this beer is aged in Leopold Brothers whiskey barrels, which 772 00:35:30,640 --> 00:35:32,840 Speaker 1: I don't think I've ever had any of that whiskey before, 773 00:35:32,880 --> 00:35:34,560 Speaker 1: but I bet it's pretty good. I bet it is. 774 00:35:34,600 --> 00:35:36,279 Speaker 1: But I could not imagine what this beer tastes like 775 00:35:36,320 --> 00:35:38,600 Speaker 1: if it wasn't aged in whiskey barrels, you know, because 776 00:35:38,600 --> 00:35:41,480 Speaker 1: typically when you age something in barrels and oak charred 777 00:35:41,520 --> 00:35:44,680 Speaker 1: oaks specifically like bourbon barrels and whiskey barrels, it mellows 778 00:35:44,680 --> 00:35:47,040 Speaker 1: out the flavors, and this is such a bright and 779 00:35:47,080 --> 00:35:51,200 Speaker 1: acidic beer that it would be almost too bright. If 780 00:35:51,239 --> 00:35:53,719 Speaker 1: it wasn't aged in some barrels like that, it would 781 00:35:53,719 --> 00:35:56,680 Speaker 1: be almost overwhelming. I think if it wasn't aged for 782 00:35:56,760 --> 00:35:58,520 Speaker 1: a little while and those whiskey barrels, I think it 783 00:35:58,640 --> 00:36:01,560 Speaker 1: really gives it the right tone. Yeah, yeah, absolutely. And 784 00:36:01,640 --> 00:36:03,520 Speaker 1: so it's super dark, like you said, and it's got 785 00:36:03,560 --> 00:36:06,160 Speaker 1: some of those darker cherry notes and whatnot, but it 786 00:36:06,239 --> 00:36:09,160 Speaker 1: really is super acidic and has this bite to it. 787 00:36:09,560 --> 00:36:11,480 Speaker 1: And I agree with you, like it does not have 788 00:36:11,560 --> 00:36:14,360 Speaker 1: a whole lot of that bready funkiness that you typically 789 00:36:14,400 --> 00:36:17,040 Speaker 1: get with a farmhouse or a says on that's that's 790 00:36:17,080 --> 00:36:19,160 Speaker 1: featuring Brett. And you know, I used to think that 791 00:36:19,200 --> 00:36:22,080 Speaker 1: I didn't like dark so hours, But what I'm learning 792 00:36:22,120 --> 00:36:23,920 Speaker 1: though is that I like dark sours as long as 793 00:36:23,960 --> 00:36:26,799 Speaker 1: they're acidic enough. What I don't like are those dark 794 00:36:26,800 --> 00:36:28,879 Speaker 1: so hours that are kind of real surrupy and kind 795 00:36:28,880 --> 00:36:31,799 Speaker 1: of flat, whereas this is the complete opposite of that. 796 00:36:31,840 --> 00:36:33,640 Speaker 1: It's it's got all those dark notes and the flavors, 797 00:36:33,640 --> 00:36:36,480 Speaker 1: but it's super high when it comes to the acidity, 798 00:36:36,719 --> 00:36:39,040 Speaker 1: and so it feels like it's really light and bright, 799 00:36:39,160 --> 00:36:41,680 Speaker 1: but it has all those dark flavors. Somehow, Crooked Stave 800 00:36:41,719 --> 00:36:43,719 Speaker 1: they're able to kind of maintain both of those qualities 801 00:36:43,800 --> 00:36:46,040 Speaker 1: within the same beer, which is really impressive, and I 802 00:36:46,080 --> 00:36:48,200 Speaker 1: think that's part of what makes this beer one of 803 00:36:48,239 --> 00:36:50,640 Speaker 1: those really good ones. So yeah, I'm I'm glad that 804 00:36:50,680 --> 00:36:52,560 Speaker 1: we got to share this one. Man. Thanks to all 805 00:36:52,560 --> 00:36:55,320 Speaker 1: of our friends up there at Crooked Stave for donating 806 00:36:55,320 --> 00:36:57,400 Speaker 1: this one to the show. Yes, it was indeed lovely, 807 00:36:57,400 --> 00:36:59,280 Speaker 1: are right, Matt, that's gonna do it for this episode. 808 00:36:59,320 --> 00:37:01,480 Speaker 1: For people that want show notes, they can check out 809 00:37:01,520 --> 00:37:03,840 Speaker 1: our website. Just go to how to money dot com. 810 00:37:03,920 --> 00:37:05,879 Speaker 1: And if you're listening to this episode and you have 811 00:37:05,960 --> 00:37:08,440 Speaker 1: not already subscribed to our show wherever it is that 812 00:37:08,440 --> 00:37:10,360 Speaker 1: you're listening to your podcast, make sure that you go 813 00:37:10,400 --> 00:37:13,000 Speaker 1: over to our show page mash that button subscribe. Make 814 00:37:13,040 --> 00:37:15,200 Speaker 1: sure that you don't miss an episode, Joel. Recently, I've 815 00:37:15,239 --> 00:37:17,719 Speaker 1: been listening on Spotify. It's actually been my my new 816 00:37:17,760 --> 00:37:21,000 Speaker 1: favorite podcast listening app. Yeah. I used to you know, 817 00:37:21,000 --> 00:37:23,239 Speaker 1: I used to be pretty hardcore on cast Box. That 818 00:37:23,360 --> 00:37:24,879 Speaker 1: used to be. Yeah, that used to be our thing 819 00:37:24,960 --> 00:37:26,120 Speaker 1: back in the day. It used to it. We used 820 00:37:26,160 --> 00:37:29,360 Speaker 1: to hit cast Box hard, but the the computer to 821 00:37:29,560 --> 00:37:33,359 Speaker 1: the iPhone app integration wasn't really doing it for me. Uh, well, 822 00:37:33,480 --> 00:37:35,319 Speaker 1: have you been using a specific app recently? I'm still 823 00:37:35,360 --> 00:37:37,359 Speaker 1: using cast Box, still on the cast Box train, i am. 824 00:37:37,360 --> 00:37:39,279 Speaker 1: But I'll give a Spotify try because I've been meaning 825 00:37:39,280 --> 00:37:40,960 Speaker 1: to check it out as they've gotten more and more 826 00:37:41,000 --> 00:37:43,120 Speaker 1: into podcasts. I was wondering, how did the app. If 827 00:37:43,120 --> 00:37:44,600 Speaker 1: you say it's good, I'll give it a shot. Yeah, 828 00:37:44,600 --> 00:37:47,440 Speaker 1: I've really enjoyed it specifically. Uh, the handoff is really good. 829 00:37:47,440 --> 00:37:48,960 Speaker 1: So you can be listening on your phone, sit down 830 00:37:49,000 --> 00:37:50,920 Speaker 1: on your computer, and then you can select it to 831 00:37:50,920 --> 00:37:53,279 Speaker 1: start playing through your speakers and it'll start playing through 832 00:37:53,280 --> 00:37:55,680 Speaker 1: your computer exactly where you left off on your phone. 833 00:37:55,719 --> 00:37:58,040 Speaker 1: It's pretty sweet, super smooth, super slick. So if you're 834 00:37:58,040 --> 00:38:00,480 Speaker 1: listening on Spotify and you're not already a subscriber, make 835 00:38:00,480 --> 00:38:02,319 Speaker 1: sure that you hit subscribe no doubt. All right, Matt, 836 00:38:02,400 --> 00:38:07,320 Speaker 1: Until next time, Best Friends Out, Best Friends Out. H