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

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

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Speaker 2: It's Ray Joel, it's Monday.

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Speaker 3: Let's step away from the craziness in the world, and

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Speaker 3: are you ready to answer some listener questions today?

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Speaker 2: Never been readier.

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Speaker 3: Yeah, wellt's do it, man. Let's get to listener questions

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Speaker 3: where we get to hear directly from you. A listener

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Speaker 3: is wanting to know who he should take stock investing

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Speaker 3: tips from. He wants to know what ticker symbols should

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Speaker 3: I be buying in order to maximize my return.

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Speaker 1: Who's the smartest person in the room, who's going to

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Speaker 1: point me to the right stocks for the future.

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Speaker 2: Exactly, So we'll get to that one.

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Speaker 3: Another listener is asking about utilizing a heelock in order

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Speaker 3: to fund a down payment, whether or not we are

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Speaker 3: in agreement there, and then a credit card rewards optimization question.

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Speaker 3: We've got a listener who's looking to make the most

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Speaker 3: of some expenses that she has coming up, so we'll

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Speaker 3: get to that plus more. During today's ask how to Money,

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Speaker 3: they buddy.

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Speaker 1: You and I we've talked about helocks and how people

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Speaker 1: are sitting on record amounts of home equity.

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Speaker 2: It's really tempting.

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Speaker 1: And we've also said, like, oh, you probably most of

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Speaker 1: the time to want to tap it this question there

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Speaker 1: might be an exception and this might be a good

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Speaker 1: use of it.

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Speaker 2: I don't know.

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Speaker 1: We'll talk about that in just a second. Before we

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Speaker 1: get to that, mat, I wanted to just quickly mention like,

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Speaker 1: Halloween's obviously right around the corner. Even though Halloween stuff

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Speaker 1: has been out in the aisles for months, I still

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Speaker 1: remember like the first time I showed up to Costco

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Speaker 1: and I was like, Halloween outfits, like costumes are out?

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Speaker 2: Was it already was? Back in July that it was?

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Speaker 2: It was?

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Speaker 1: And my son was like, I want a ninja outfit,

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Speaker 1: and I'm like, you already have a ninja outfit, but

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Speaker 1: he's obsessed with being a ninja. And so my question

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Speaker 1: to you, though, is one, how do you feel about

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Speaker 1: reusing Halloween costumes before it going it's the same thing

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Speaker 1: every year?

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Speaker 2: You gear right with that?

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Speaker 1: And then two, man, this is I think buying a

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Speaker 1: Halloween costume used on Facebook. Like let's say you don't

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Speaker 1: want to make your own. You're not the homespun type,

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Speaker 1: Like I'm not gonna sit down with some thread and

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Speaker 1: a needle and sit down to the sewing machine. Probably

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Speaker 1: not the singer you have. You've created actually some really

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Speaker 1: good homemade outfits over the years, Thank you. Uh well,

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Speaker 1: you were like tinker Bell's husband or something, mess in

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Speaker 1: the day.

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Speaker 3: That's not a joke. She's not married. Fairies aren't married.

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Speaker 3: They're all friends, are they all? They're all hippies. They

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Speaker 3: live in this Okay, it's like a commune. Okay, no,

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Speaker 3: it was. It was uh it Terrence or Clarence or

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Speaker 3: something or something like that. It was like the I don't know,

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Speaker 3: like the one boy fairy back when Vue was wanting to.

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Speaker 2: Be should post pictures to our on Instagram?

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Speaker 3: I made my own little acorn hat. I have my

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Speaker 3: boots on. That was a good one.

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Speaker 1: So I guess to the people, who, how do you

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Speaker 1: feel about just going on there and buying someone else's goods?

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Speaker 1: And by the way, it thinks great if you want

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Speaker 1: to update your costume, don't want to wear the same thing,

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Speaker 1: what about listing the costume you're not going to re wear?

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Speaker 1: Now is the perfect time to put that on Facebook?

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Speaker 2: Yeah?

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Speaker 3: Well then that kind of raises another question. I feel

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Speaker 3: like you've asked me three questions here. So to your

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Speaker 3: most immediate question listing your old costume, I feel like

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Speaker 3: that's a frugal or cheap because really, well is it

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Speaker 3: worth as a lot of I mean, what's the how

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Speaker 3: much are you getting for that thing?

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Speaker 1: Probably it depends on how nice a costume is, I guess,

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Speaker 1: but let's say ten twelve bucks exactly, and maybe twenty

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Speaker 1: five if you've got like one of the really.

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Speaker 3: Nice And maybe you're not doing as well as I

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Speaker 3: am these days, Joel, but like and there are who

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Speaker 3: is there are other ways where I'm going to pick

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Speaker 3: up every sort of loose piece of change I see

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Speaker 3: on the sidewalk, like not literally right, like I refuse

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Speaker 3: to pick up pinies now, But there are other ways

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Speaker 3: where folks are like, dude, I can't believe you do

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Speaker 3: that in order to save a buck. I guess for me,

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Speaker 3: the costume things, that's not something we have done on Facebook.

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Speaker 2: I'm not a fan of.

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Speaker 3: Just the haggling, the going back and forth, showing up

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Speaker 3: and maybe it's not what you thought it was going

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Speaker 3: to be. And like you said, I guess historically we've Yeah,

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Speaker 3: we don't normally buy costumes. We always end up kind

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Speaker 3: of like scraping them together with clothes that we have

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Speaker 3: at home and being a little more creative in that way.

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Speaker 2: Except this year.

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Speaker 3: It's funny that you mentioned buying the Ninja outfit at Costco,

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Speaker 3: because this year is the first year we've ever purchased a.

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Speaker 2: Full on costume. Huh.

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Speaker 3: Because Westy, I think it was he saw a costume

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Speaker 3: at Costco and he, I think that's a nice one.

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Speaker 3: Was a police officer uniform, and he'd been for weeks.

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Speaker 3: He was just like, oh, I want to be a policeman.

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Speaker 3: I'm like, all right, buddy, except for the fact that

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Speaker 3: the costume never came back, and so every time we

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Speaker 3: would go in there, I would check the rack and

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Speaker 3: they never carried it again. And so I got lucky though.

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Speaker 3: I swung into a TJ Max randomly a few weeks

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Speaker 3: ago picked up a policeman outfit costume or whatever for

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Speaker 3: like eight ninety nine or something like that.

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Speaker 2: Are the TG Maxes across the country, I.

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Speaker 3: Think, so, yeah, it's a pretty big retailer, discount home goods,

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Speaker 3: clothing retailer or whatever. So maybe for that costume I

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Speaker 3: could see some slight residual value when it comes to

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Speaker 3: that costume.

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Speaker 1: I guess the thing we want people to avoid is

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Speaker 1: walking into a Spirit Halloween store on like October twenty

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Speaker 1: ninth or thirtieth and getting completely swindled.

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Speaker 3: Amazing, they raised the razor prices significant Alloween.

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Speaker 2: There are probably raising prices, yeah, or no, I would

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Speaker 2: think so.

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Speaker 1: Or I just gotta imagine it's really expensive to buy

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Speaker 1: that last mink A costume. You're picking over whatever is

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Speaker 1: left and and so. Yeah, either be creative like you Matt,

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Speaker 1: make your own fairy costume, uh, or or buy something

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Speaker 1: used on Facebook marketplace.

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Speaker 2: If you're so inclined.

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Speaker 1: What about the Maybe you end up paying nothing if

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Speaker 1: you sell your old costume too.

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Speaker 2: I guess we have made our own costumes a whole lot.

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Speaker 2: I haven't thought about it.

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Speaker 3: You remember the year when our family did Beauty and

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Speaker 3: the Beast and I was the candle Oberry. Oh that's right, yes,

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Speaker 3: And I created candlesticks for my arms that were just

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Speaker 3: rolled up poster board, and I painted my fingers red

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Speaker 3: and there were the flames that I could do.

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Speaker 2: The do the flame.

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Speaker 1: You've warned some ostentatious outfits through the years.

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Speaker 2: Yeah, we always get together for Halloween.

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Speaker 3: I'll post some of some of the old Guard family

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Speaker 3: Halloween costume photos of the good years, adorable years and

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Speaker 3: good memories.

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Speaker 1: I might I've got my old Michelangelo Ninja turtle costume.

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Speaker 1: That's a good that's a good go to it like

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Speaker 1: never goes out of style. So maybe you got that one.

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Speaker 1: And then don't you have a banana?

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Speaker 2: Weren't you?

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Speaker 1: I don't think I've ever been a banana. I was

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Speaker 1: inflatable Ballerina one year, but I think that the motive

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Speaker 1: broke on that.

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Speaker 2: Oh no, you were the yellow man what's it called

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Speaker 2: serious George, which I'm freakishally tall, So it works out.

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Speaker 2: It works so well.

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Speaker 3: That's why I was thinking banana.

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Speaker 2: They're very similar.

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Speaker 1: All right, let's mention the beer real pick math that

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Speaker 1: we're gonna have. Yeah, on this episode. This one is

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Speaker 1: called Upstream. It's a hazy ipa by combo between Fremont

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Speaker 1: Brewing and Society, uh and one ones out of Seattle,

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Speaker 1: ones out of California. We'll give our thoughts on this one.

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Speaker 2: Maybe it's Society.

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Speaker 3: It's got an E now I could no it would

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Speaker 3: have the little French symbol if.

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Speaker 2: It's supposed to be pronounce that way, right, Yeah, I don't.

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Speaker 1: I don't have pronunciation skills like you, but I'll say

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Speaker 1: society or we'll give our thoughts on this one at

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Speaker 1: the end of the episode, but we will. Let's get

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Speaker 1: your listener questions, and if you have a money question,

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Speaker 1: please do send it our way, whether it's a specific

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Speaker 1: money scenario you and your family faces, like right now,

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Speaker 1: or whether it's just kind of one of those things

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Speaker 1: that's been lingering in your back, in the back of

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Speaker 1: your head and you're like, yeah, I wonder what man

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Speaker 1: Joel think about that.

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Speaker 3: Maybe it's something a friend of yours is going through, right, like,

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Speaker 3: this is something that I'm not This isn't something I'm

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Speaker 3: dealing with. Guys, this is quite to quote somebody else. Yeah,

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Speaker 3: that's totally fine as well.

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Speaker 1: Howard, Matt and Joel talked to my idiot friend over here.

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Speaker 1: We'd love to hear that question. You can just literally

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Speaker 1: record a voice memo, send it over to us via email,

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Speaker 1: or go to hoamoney dot com slash ask.

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Speaker 2: The weirder the better. We love weird stuff.

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Speaker 1: If it's a very straight laced, roth higher a question,

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Speaker 1: that's okay, But we like the funky stuff too. Allight,

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Speaker 1: Let's get to a question now. This is specifically about

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Speaker 1: helping someone else invest.

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Speaker 4: I'm Matt and Joel. This is Katie. I have a

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Speaker 4: question about creating a brokerage account for my nephew. He

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Speaker 4: was born last year and I opened a brokerage account

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Speaker 4: in Fidelity in my name and I'm putting fifty dollars

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Speaker 4: a month into VLL for him. I am not planning

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Speaker 4: on telling his parents, and I didn't want it to

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Speaker 4: be in his name to impact anything down the road

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Speaker 4: with financial aid. I also wanted to keep it in

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Speaker 4: my name just in case I needed the money in

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Speaker 4: the future, or if I can't keep up with this,

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Speaker 4: both things that I don't expect to happen, but just

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Speaker 4: wanted to make it possible. Still, my goal is to

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Speaker 4: do this until he is eighteen and give it to

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Speaker 4: him when he was twenty five or so. Is this

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Speaker 4: okay to keep in my name and give to him

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Speaker 4: in the future with the only tax implication beyond him

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Speaker 4: if and when he sells the position. Any help would

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Speaker 4: be greatly appreciated. Love the podcast.

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Speaker 2: Thank you, Katie.

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Speaker 3: First off, I am going to nominate you for Best

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Speaker 3: Aunts of the year.

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Speaker 2: Is there an award for that, Joel? I don't know,

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Speaker 2: but I think you just created one and I stand

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Speaker 2: behind this.

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Speaker 3: You are incredibly generous. I think it's awesome what you're

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Speaker 3: doing there for your nephew. And I'll go ahead and

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Speaker 3: say that you are correct on almost every point there

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Speaker 3: when it comes to investing for your nephew, keeping it

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Speaker 3: in your name, that's going to allow you to remain

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Speaker 3: in control. It's not going to impact his ability to

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Speaker 3: score any financial aid for college. But honestly, who knows

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Speaker 3: in eighteen years what the rules will and won't be.

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Speaker 1: But I can't imagine they're going to be like broker's

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Speaker 1: account in your ant exactly. Sorry, you just think your

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Speaker 1: financiallead package you got reduced significant exactly.

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Speaker 3: But as of now, at the least, at the very

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Speaker 3: least prospective schools, they don't have any clue that you

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Speaker 3: are intending for money that you have invested in your

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Speaker 3: own brokerage account to go to him. And then on

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Speaker 3: top of that, if you do this for you said

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Speaker 3: you're gonna do this for eighteen years, and then it

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Speaker 3: sounds like I guess then you're gonna sit on it

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Speaker 3: maybe for seven and then give it to him at

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Speaker 3: age twenty five. If that's the case, you could easily

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Speaker 3: have over fifty thousand dollars saved up for him, which

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Speaker 3: is incredible. And what's super cool here is that only

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Speaker 3: ten thousand dollars of that would be contributions made by you.

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Speaker 3: The rest of it would all be earning. Yeah, growth man, phenomenal.

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Speaker 2: Yeah.

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Speaker 1: Well, And the other thing I like about this too

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Speaker 1: is waiting till age twenty five, till that prefrontal cortex

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Speaker 1: is fully formatt you don't want to give the money.

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Speaker 2: One hundred percent.

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Speaker 1: Can you imagine getting fifty grand or forty grand or

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Speaker 1: something at the age of eighteen. I wouldn't know what

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Speaker 1: to do with it. I would have screwed up majorly

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Speaker 1: even at twenty five, Like probably some choices I would

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Speaker 1: have made it wouldn't have been the best. And so, yeah,

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Speaker 1: I think that's the cool thing. If it remains in

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Speaker 1: your name, you then have the ability to decide when

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Speaker 1: and how you gifted to your nephew. You could do

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Speaker 1: it in one fell swoop, one lump summer. You can

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Speaker 1: kind of do it irregularly over time and kind of

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Speaker 1: let him in on the reality of what you're trying

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Speaker 1: to help him accomplish and Matt, Yeah, you mentioned that

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Speaker 1: he'd have fifty thousand bucks at the age of twenty five. Well,

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Speaker 1: if you handed that money over to him though at

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Speaker 1: that point in time, Katie, and then he kept that

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Speaker 1: money invested, given the many decades that he would be

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Speaker 1: able to continue the investing journey, he could grow that

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Speaker 1: sum significantly beyond fifty thousand bucks. So this could turn into.

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Speaker 2: Some amazing seed money. Yes.

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Speaker 1: For Yeah, whether it's like starting a small business, I

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Speaker 1: mean think about that, that's a large chunk of change

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Speaker 1: to kind of get the ball rolling. It gives you

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Speaker 1: an option earlier on or if it's like, no, I'm

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Speaker 1: going to go a traditional workout and this money's actually

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Speaker 1: I'm going to save it for future retirement, that could

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Speaker 1: be a massive chunk of change even further down the road.

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Speaker 1: I think the one thing you might be avoiding though

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Speaker 1: by keeping this really secretive. I don't know that you're

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Speaker 1: trying to keep it secretive, but part of the benefit

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Speaker 1: that you can instill with your knowledge is teaching your

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Speaker 1: nephew how to invest and talking to him about money

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Speaker 1: kind of regularly over the years growing up. And I

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Speaker 1: don't think it has to be one or the other necessarily,

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Speaker 1: but I do think it's important. Because this is important

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Speaker 1: to you, I would try to find ways to talk

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Speaker 1: with him about the concepts of growing wealth in an

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Speaker 1: age appropriate way.

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Speaker 2: So you're just.

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Speaker 1: Gonna, I think you're gonna be surprised at the cool

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Speaker 1: conversations that you can look forward to when he gets

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Speaker 1: into let's say, middle school, right man. I think once

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Speaker 1: kids hit that, in particular sixth grade seventh grade, the

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Speaker 1: things that they're able to understand and converse about they

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Speaker 1: just grow exponentially. So Plus, I think this prepares him

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Speaker 1: for the reality that's coming down the pike, ensuring that

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Speaker 1: he's not caught off guard and that he's well prepared

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Speaker 1: to make smart moves when this vast sum of money is.

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Speaker 2: If he doesn't immediately blow it.

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Speaker 1: Yeah, it's like we've been having these conversations for years.

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Speaker 1: He's getting prepared not only to inherit a decent chunk

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Speaker 1: of money, but then also he's prepared to understand pretty

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Speaker 1: well how money works and what he can do with it.

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Speaker 3: Yeah, said, I will say, I like I do understand

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Speaker 3: her hesitancy to let not only her nephew know, but

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Speaker 3: also the nephew's parents, So I guess her sister or

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Speaker 3: brother because and what she said was that she's not

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Speaker 3: sure if she's gonna be able to keep it up.

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Speaker 3: And so that's like, that's the part of it that

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Speaker 3: I think if I were in her shoes, I would

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Speaker 3: I think there was a chance I wouldn't tell them either.

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Speaker 3: I think I would just kind of sit on it

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Speaker 3: or if you found yourself in a hard position, or

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Speaker 3: maybe it's like, oh, I really need to use this

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Speaker 3: money to be able to do X, y Z with it.

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Speaker 2: Whatever I changed. Yeah, yeah, exactly.

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Speaker 3: And so that being said, I understand at least waiting until, like,

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Speaker 3: like she said, maybe once he's eighteen, because by then,

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Speaker 3: you'll I think she would have a very good idea

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Speaker 3: as to how much money she would have on hand

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Speaker 3: as opposed to this sort of iou because if her

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Speaker 3: parents know about it starting now, and they can quickly

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Speaker 3: easily do the math and be like all right, like

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Speaker 3: that's that's a lot of money, and then if eighteen

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Speaker 3: yearlls around and you have like half of that, there

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Speaker 3: might be a little a little bit of disappointment where

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Speaker 3: they're just like, ohh so yeah, keeping it secret, keeping

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Speaker 3: it safe, the ability to keep that disappointment at bay.

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Speaker 2: I certainly appreciate that.

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Speaker 3: And you can still sort of have some of these

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Speaker 3: personal finance conversations and talk about investing without fully disclosing

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Speaker 3: how much money you're setting aside. And especially as I think,

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Speaker 3: with kids, so many of the early money lessons are

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Speaker 3: about them understanding the value of a dollar, right, the

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Speaker 3: ability to earn money based on the work that you're doing,

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Speaker 3: and then slowly saving, and you can get to some

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Speaker 3: of those investing lessons maybe yeah, once he does go

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Speaker 3: off to college, for instance.

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Speaker 1: Yeah, I guess what I'm hinting at is lots of

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Speaker 1: times of parents in particular think that, oh, I'm just

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Speaker 1: going to save money in a five twenty nine plan

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Speaker 1: for my kid. They'll have seventy five thousand dollars, let's say,

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Speaker 1: to help reduce the cost of college. But the bigger

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Speaker 1: investment that you can make is often through what you

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Speaker 1: teach him about money. And if those lessons don't get taught, well,

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Speaker 1: it's amazing and wonderful that you saved up a big

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Speaker 1: nest egg for them, but being able to kind of

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Speaker 1: help them understand money concepts from an early age and

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Speaker 1: help them grow in developing some money wisdom and be

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Speaker 1: worth a whole lot more than seventy five grand over

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Speaker 1: the decades.

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Speaker 2: Totally.

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Speaker 1: And let's talk about taxes though here, Matt, like, that's

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Speaker 1: kind of the heart of Katie's question. Your nephew would

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Speaker 1: not necessarily be on the hook for the taxes, but

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Speaker 1: it's all in how you go about it. So you

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Speaker 1: could sell positions which would generate a tax bill for you,

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Speaker 1: but then you know, obviously ideally you don't want to

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Speaker 1: do that because you probably want to minimize your tax burden.

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Speaker 1: But because of the way gift tax laws work, you

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Speaker 1: can give your nephew up to eighteen thousand dollars tax

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Speaker 1: free every single year. Matt, you talked about changing tax laws, Well,

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Speaker 1: that number is going to change by the time Katie's

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Speaker 1: ready to give these gifts, so that number goes up

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Speaker 1: typically adjusted for inflation, every year. But the cool thing

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Speaker 1: is you can give stock up to that amount too,

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Speaker 1: so it's not just literally cash from your savings account.

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Speaker 1: So at that point in time, your nephew is going

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Speaker 1: to be able to be in control of these assets.

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Speaker 1: He would then be responsible for paying capital gains tax

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Speaker 1: upon selling once you've kind of gifted him those funds.

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Speaker 1: So in my mind that you'd be pulling off exactly

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Speaker 1: what you're trying to do, not creating a tax burden

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Speaker 1: for yourself, but also investing in a way in which

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Speaker 1: you hold the keys to win. And if he has

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Speaker 1: access to those funds, to those assets, that's right.

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Speaker 3: Yeah, it would not be difficult to do that over

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Speaker 3: a few years. But we wanted to toast a couple

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Speaker 3: of other account options out there as well, because if

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Speaker 3: your nephew is likely to go to college, a five

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Speaker 3: twenty nine account could be a better choice than a

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Speaker 3: taxable brokerage account. And that's because if he doesn't go

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Speaker 3: to college, that account is now more flexible given recent

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Speaker 3: changes to the law, and it could be a killer

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Speaker 3: start to funding a roth ira as he enters early adulthood.

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Speaker 3: Speaking of the rath actually you didn't mention whether or

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Speaker 3: not you are maxing out a wroth for yourself or not,

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Speaker 3: but a roth ira could actually be the best overall option.

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Speaker 3: We kind of immediately jumped into brokerage accounts, but a

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Speaker 3: roth man the ability to allow yourself to build wealth

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Speaker 3: for the two of you at the same time, while

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Speaker 3: you still maintain the flexibility of being able to withdraw

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Speaker 3: some of his option those contributions.

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Speaker 2: I mean that would be huge. Yeah, agreed, Yeah, it

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Speaker 2: should have started there maybe.

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Speaker 1: Yeah, I think if Katie isn't already doing a roth ira,

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Speaker 1: that that's where we want to kind of point you.

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Speaker 1: First scrap the taxbile brokerage account for the time being,

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Speaker 1: go all in on the wroth That's because you can

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Speaker 1: contribute up to seven thousand dollars a year.

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Speaker 2: Right.

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Speaker 1: If you decide you want to ramp things up and

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Speaker 1: invest more over time, you can do that. But especially

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Speaker 1: with your current fifty dollars a month contribution amount, you're

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Speaker 1: well within the contribution limits of a roth IRA. And

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Speaker 1: then the cool thing is you can take out the

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Speaker 1: contributions in the future to straight up give him cash.

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Speaker 1: And that's generating no tax for you, no tax for

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Speaker 1: your nephew either, And this is probably the best of

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Speaker 1: both worlds from a tax and from a gifting perspective,

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Speaker 1: and then from your own future retirement needs perspective too.

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Speaker 1: It gives you the ability to build up a solid

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Speaker 1: nest egg of contributions, but then the earnings you can

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Speaker 1: keep for yourself to use for your retirement future. And

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Speaker 1: so again we love what you're doing here, love that

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Speaker 1: you're wanting to help the next generation of people in

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Speaker 1: your family succeed. When it comes to money, Katie, we

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Speaker 1: would say, keep up the good work, keep putting money

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Speaker 1: in regularly, and do it in the most tax advantaged

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Speaker 1: way that you possibly can. I think the roth Ira,

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Speaker 1: if that's a stone you haven't turned up yet, is

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Speaker 1: kind of, like Matt said, probably the best way to go.

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Speaker 3: And don't forget this personal finance lessons that Joel mentioned earlier.

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Speaker 3: And you don't necessarily have to be socking away money

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Speaker 3: for him in order to share those lessons with him

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Speaker 3: over time.

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Speaker 1: Yeah, and I think you could, you could like share

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Speaker 1: the lessons without even letting him in on the fact

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Speaker 1: that you're saving future.

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Speaker 2: All Right, we've got more to get to.

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Speaker 3: We're gonna hear from a listener who might be over

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Speaker 3: invested in securities and is looking to rebalance his portfolio.

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Speaker 2: We'll get to that more right after this.

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Speaker 1: All right, Matt, we're back time for another question. Let's

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Speaker 1: get to this one on using home equity to invest more.

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Speaker 5: Hi, Jolan, Matt, my name is Daniela, and I'm from Massachusetts.

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Speaker 5: I have been listening to your podcast since my husband

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Speaker 5: and I decided to purchase our first home in twenty twenty.

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Speaker 5: We bought a duplex and I have been living in

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Speaker 5: one unit while renting the other. Since then, our house

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Speaker 5: has appreciated in value a lot. We would like to

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Speaker 5: purchase another multi family home soon, and we would like

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Speaker 5: to use our equity. Since we bought in twenty twenty

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Speaker 5: with less than three percent interest rate, we want to

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Speaker 5: avoid a cash out REFI the only other option we

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Speaker 5: have thought of would be a helock to access to equity.

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Speaker 5: I have listened to your episodes on helocks and using

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Speaker 5: it to invest, but I would love to hear if

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Speaker 5: your opinions have changed given the current market and rates.

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Speaker 5: What should we take into consideration when using a helock

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Speaker 5: as a down payment.

440
00:18:44,040 --> 00:18:47,000
Speaker 3: Thank you all right, Danielle. Hopefully we will give you

441
00:18:47,040 --> 00:18:49,919
Speaker 3: some things to think about. But I want to highlight

442
00:18:49,920 --> 00:18:52,880
Speaker 3: the fact that you are house hacking, which is phenomenal.

443
00:18:53,280 --> 00:18:55,399
Speaker 3: You are doing the living in one half of the

444
00:18:55,480 --> 00:18:58,760
Speaker 3: duplex and renting out the other half, which is a

445
00:18:58,760 --> 00:19:02,280
Speaker 3: classic recipe for loowing housing costs significantly. By doing that,

446
00:19:02,320 --> 00:19:04,480
Speaker 3: you're gonna be able to build wealth more quickly there

447
00:19:04,520 --> 00:19:06,480
Speaker 3: as a landlord, and it is clearly worth out for

448
00:19:06,560 --> 00:19:09,520
Speaker 3: you so far, given what's happened with home prices over

449
00:19:09,520 --> 00:19:12,639
Speaker 3: the past four years specifically, and now you want to

450
00:19:12,680 --> 00:19:15,360
Speaker 3: double down on that good decision, We are all for

451
00:19:15,400 --> 00:19:16,679
Speaker 3: you thinking in this direction.

452
00:19:16,840 --> 00:19:19,720
Speaker 1: Yeah, no, I agree. I house hacking is one of

453
00:19:19,720 --> 00:19:23,560
Speaker 1: those things that's underutilized because housing costs are typically what Matt,

454
00:19:23,600 --> 00:19:26,520
Speaker 1: one of the biggest parts of any normal person's budget.

455
00:19:27,320 --> 00:19:31,199
Speaker 1: It exceeds food, it exceeds gas. Those are things that

456
00:19:31,240 --> 00:19:35,080
Speaker 1: were like viscerally complain about. But if you're like, can

457
00:19:35,119 --> 00:19:37,640
Speaker 1: I say a thousand bucks on rent or on my mortgage,

458
00:19:38,040 --> 00:19:41,080
Speaker 1: that is something people would jump at instinctively. And house

459
00:19:41,119 --> 00:19:42,679
Speaker 1: hacking allows you to do that. And that's exactly what

460
00:19:42,760 --> 00:19:46,080
Speaker 1: Danielle is doing. It's something that I've done over the years,

461
00:19:46,119 --> 00:19:48,159
Speaker 1: whether it was renting out a room or owning a

462
00:19:48,200 --> 00:19:50,800
Speaker 1: duplex and running out the back half. And it's amazing

463
00:19:50,880 --> 00:19:54,320
Speaker 1: how it can help jumpstart your ability to build a

464
00:19:54,320 --> 00:19:57,760
Speaker 1: successful financial future. And the cool thing about this too,

465
00:19:57,760 --> 00:19:59,960
Speaker 1: is you're gonna be able to get another primary home loan.

466
00:20:00,560 --> 00:20:02,600
Speaker 1: You got that the first time around, that's what.

467
00:20:02,520 --> 00:20:04,480
Speaker 3: It sounds like at Lias because she says did she

468
00:20:04,520 --> 00:20:06,760
Speaker 3: use the word home because she didn't say specifically, Well,

469
00:20:06,800 --> 00:20:08,720
Speaker 3: she didn't say specifically that she was looking at getting

470
00:20:08,760 --> 00:20:11,880
Speaker 3: another duplex as an investment property, So I guess we're

471
00:20:11,920 --> 00:20:13,240
Speaker 3: assuming that she's looking at.

472
00:20:13,960 --> 00:20:15,919
Speaker 2: Perhaps a slight duplex upgrade.

473
00:20:15,760 --> 00:20:17,760
Speaker 1: Which which would be Honestly, the ideal way to go

474
00:20:17,880 --> 00:20:19,560
Speaker 1: is to like, yes, hey, rent out the place that

475
00:20:19,600 --> 00:20:22,280
Speaker 1: you're in, Now buy the next duplex, live in half

476
00:20:22,320 --> 00:20:24,679
Speaker 1: of that again. Now you've got four units, one of

477
00:20:24,680 --> 00:20:27,119
Speaker 1: which you live in, but you're able to get if

478
00:20:27,160 --> 00:20:29,520
Speaker 1: you buy it as a primary home again, better rates,

479
00:20:29,520 --> 00:20:31,600
Speaker 1: better terms than you get with an investment loan, whereas

480
00:20:31,640 --> 00:20:34,440
Speaker 1: if you stayed put, you're buying that next duplex as

481
00:20:34,480 --> 00:20:38,120
Speaker 1: an investor versus a primary homeowner. Right, so your rate's

482
00:20:38,160 --> 00:20:40,320
Speaker 1: not going to be nearly as amazing as your current duplex.

483
00:20:40,640 --> 00:20:42,560
Speaker 1: That's just because rates aren't as good as they were

484
00:20:42,600 --> 00:20:45,240
Speaker 1: when you bought that house. And that's okay. That doesn't

485
00:20:45,240 --> 00:20:48,119
Speaker 1: necessarily make this a bad decision at all. And the

486
00:20:48,160 --> 00:20:50,280
Speaker 1: truth is, if you pull this off, which I think

487
00:20:50,320 --> 00:20:53,240
Speaker 1: you're going to, you're gonna have three income producing units

488
00:20:53,440 --> 00:20:56,080
Speaker 1: and you might find that those three tenants put together

489
00:20:56,400 --> 00:20:59,000
Speaker 1: are reducing your cost of living substantially. You might essentially

490
00:20:59,000 --> 00:21:02,480
Speaker 1: be living rent free. And Matt, think about that, living

491
00:21:02,560 --> 00:21:04,479
Speaker 1: rent free, How much you can do, how much progress

492
00:21:04,480 --> 00:21:06,240
Speaker 1: you can make if that's the position you're.

493
00:21:06,160 --> 00:21:08,480
Speaker 3: In twenty five percent of most people's budgets. Yeah, but

494
00:21:08,520 --> 00:21:11,840
Speaker 3: let's talk about how you can grab some helock funds

495
00:21:11,920 --> 00:21:14,800
Speaker 3: for that next down payment. Actually, before we get to that,

496
00:21:15,480 --> 00:21:17,160
Speaker 3: I think the first piece of advice that we should

497
00:21:17,200 --> 00:21:19,840
Speaker 3: give would be to save up more cash if that

498
00:21:19,920 --> 00:21:22,199
Speaker 3: is something that you're that you're able to do, or

499
00:21:22,200 --> 00:21:24,880
Speaker 3: something that you can be patient with, because the best

500
00:21:24,880 --> 00:21:27,440
Speaker 3: part about someone else paying the majority of your mortgage

501
00:21:27,920 --> 00:21:30,520
Speaker 3: is that you can accelerate your cash hoarding abilities. That

502
00:21:30,600 --> 00:21:33,760
Speaker 3: cash can just be shoved directly into your next real

503
00:21:33,880 --> 00:21:38,040
Speaker 3: estate opportunity, helping you to avoid helocks completely, and of

504
00:21:38,080 --> 00:21:40,200
Speaker 3: course other forms of debt down the road as well.

505
00:21:40,600 --> 00:21:42,600
Speaker 3: And we get the desire to keep your current mortgage

506
00:21:42,720 --> 00:21:45,560
Speaker 3: as is in your desire to keep building and buying,

507
00:21:45,720 --> 00:21:48,840
Speaker 3: given the success that that you've already had and how

508
00:21:48,880 --> 00:21:52,040
Speaker 3: game changing it has been for you. But I will

509
00:21:52,080 --> 00:21:54,800
Speaker 3: say to I would exercise some caution because I mean,

510
00:21:54,800 --> 00:21:57,320
Speaker 3: there are several reasons why it feels me I would

511
00:21:57,320 --> 00:22:00,800
Speaker 3: be more cautious. We already talked about rates, and so

512
00:22:01,040 --> 00:22:03,920
Speaker 3: it's going to be more difficult to make the numbers work.

513
00:22:03,960 --> 00:22:05,560
Speaker 3: You're gonna have to work, You're gonna have to work

514
00:22:05,560 --> 00:22:07,280
Speaker 3: the spreadshet you're gonna have to tease the numbers out

515
00:22:07,480 --> 00:22:09,560
Speaker 3: a little bit more in order to find a deal

516
00:22:09,600 --> 00:22:12,080
Speaker 3: that's going to be as good as what you were able.

517
00:22:11,920 --> 00:22:13,679
Speaker 2: To score its rates and home prices by the.

518
00:22:13,640 --> 00:22:16,399
Speaker 3: Way, I hope you exactly Well, that's I mean appreciation.

519
00:22:16,480 --> 00:22:18,440
Speaker 3: That's another part of it too, because she mentioned she's

520
00:22:18,480 --> 00:22:20,680
Speaker 3: like the way she said it, she's like, man, we've

521
00:22:20,800 --> 00:22:25,320
Speaker 3: seen the equity and our property increase significantly. I would

522
00:22:25,320 --> 00:22:27,840
Speaker 3: not necessarily count on that because of prices are basically

523
00:22:27,920 --> 00:22:29,960
Speaker 3: twenty five percent higher than they were back in twenty

524
00:22:30,000 --> 00:22:33,879
Speaker 3: nineteen pre pandemic, and housing is definitely not an exception

525
00:22:34,119 --> 00:22:36,199
Speaker 3: to that rule as well. And so were you to

526
00:22:36,200 --> 00:22:39,560
Speaker 3: buy another property now realize that, like, I'm sure you're

527
00:22:39,560 --> 00:22:41,680
Speaker 3: going to see an increase in the value of that property,

528
00:22:41,680 --> 00:22:43,879
Speaker 3: but it's probably not going to be nearly at the

529
00:22:43,920 --> 00:22:46,320
Speaker 3: pace or the clip that you've seen currently.

530
00:22:46,480 --> 00:22:47,280
Speaker 2: Yeah, you can't.

531
00:22:47,080 --> 00:22:50,440
Speaker 1: Expect essentially like twenty twenty three stock market returns, you're

532
00:22:50,440 --> 00:22:52,120
Speaker 1: gonna have yours like twenty twenty two. And the same

533
00:22:52,119 --> 00:22:54,080
Speaker 1: thing that's true in the housing market, right exactly that

534
00:22:54,119 --> 00:22:57,280
Speaker 1: you can't expect like, hey, I'm going to washprints and

535
00:22:57,320 --> 00:22:59,280
Speaker 1: repeat and get the exact same results were in a

536
00:22:59,320 --> 00:23:00,159
Speaker 1: different climate.

537
00:23:00,000 --> 00:23:01,520
Speaker 3: Think the results might be a little bit different. And

538
00:23:01,760 --> 00:23:03,879
Speaker 3: one other point of caution I guess I wanted to

539
00:23:03,960 --> 00:23:06,040
Speaker 3: throw out there as well is the fact that, and

540
00:23:06,119 --> 00:23:08,119
Speaker 3: maybe this is me really ringing between the lines, but

541
00:23:08,320 --> 00:23:10,600
Speaker 3: being a landlord of a duplex that you're living in

542
00:23:10,640 --> 00:23:13,120
Speaker 3: the other half is pretty nice, right.

543
00:23:13,200 --> 00:23:14,120
Speaker 2: If there's something wrong with.

544
00:23:14,040 --> 00:23:16,280
Speaker 3: The garbage disposal, you take like five steps, you go

545
00:23:16,280 --> 00:23:19,560
Speaker 3: around the corner and you're right there, as opposed to

546
00:23:19,920 --> 00:23:22,879
Speaker 3: driving to a different neighborhood or driving across town. Up

547
00:23:22,960 --> 00:23:27,440
Speaker 3: until now, managing that duplex has probably felt like, certainly

548
00:23:27,440 --> 00:23:29,880
Speaker 3: a part time job, but like a super light part

549
00:23:29,920 --> 00:23:32,639
Speaker 3: time job, as opposed to having to load some tools

550
00:23:32,680 --> 00:23:35,639
Speaker 3: in the vehicle, driving over to see it, scheduling a

551
00:23:35,720 --> 00:23:37,800
Speaker 3: time to see it. Like it starts to feel a

552
00:23:37,840 --> 00:23:39,919
Speaker 3: bit more like a part time job. It's going to

553
00:23:39,920 --> 00:23:43,040
Speaker 3: be more work than I think. Maybe what you've experienced

554
00:23:43,040 --> 00:23:44,840
Speaker 3: so far, So just something to keep in mind that

555
00:23:44,840 --> 00:23:48,280
Speaker 3: it's not going to necessarily be quite as easy as

556
00:23:48,280 --> 00:23:48,959
Speaker 3: it has been so far.

557
00:23:49,040 --> 00:23:50,640
Speaker 1: So what you're getting at you got to ask the question,

558
00:23:50,760 --> 00:23:52,440
Speaker 1: is the juice is going to be worth the squeeze

559
00:23:52,480 --> 00:23:54,960
Speaker 1: if I continue to kind of ramp up my investments

560
00:23:54,960 --> 00:23:57,720
Speaker 1: and expand my real estate empire. And the answer is

561
00:23:57,760 --> 00:24:00,640
Speaker 1: maybe right, depends on the specific numbers where you live

562
00:24:00,720 --> 00:24:02,840
Speaker 1: and the specific properties you're looking at. And I think

563
00:24:02,880 --> 00:24:04,720
Speaker 1: also what you're saying, Matt too, is that a wisely

564
00:24:04,840 --> 00:24:07,680
Speaker 1: used helock can help you make more progress in less

565
00:24:07,680 --> 00:24:10,560
Speaker 1: time when it comes to ramping up the speed of

566
00:24:10,600 --> 00:24:14,080
Speaker 1: your ability to invest, But that's also not without additional risk, sure,

567
00:24:14,160 --> 00:24:16,960
Speaker 1: so you have to take that into consideration, Like I

568
00:24:17,640 --> 00:24:20,520
Speaker 1: use this this. I did something very similar to myself

569
00:24:20,520 --> 00:24:23,440
Speaker 1: after about my first property and it had increased in

570
00:24:23,480 --> 00:24:25,720
Speaker 1: value substantially, and I did take some helock money out

571
00:24:25,840 --> 00:24:27,800
Speaker 1: to buy the next house and it worked out well,

572
00:24:28,000 --> 00:24:30,240
Speaker 1: but I was very cautious about how much dat I

573
00:24:30,320 --> 00:24:32,159
Speaker 1: was willing to take on, and I wanted to keep

574
00:24:32,200 --> 00:24:36,000
Speaker 1: a significant equity buffer, like I didn't don't call hogwild.

575
00:24:36,200 --> 00:24:38,040
Speaker 1: I guess this is what I'm trying to say. And

576
00:24:38,359 --> 00:24:40,240
Speaker 1: so I think too, if your question a bit about

577
00:24:40,440 --> 00:24:43,160
Speaker 1: using a helock to help you buy something frivolous, we'd

578
00:24:43,200 --> 00:24:45,399
Speaker 1: say no way. I mean, that's typically when people are

579
00:24:45,440 --> 00:24:48,280
Speaker 1: talking about pulling helock funds, Matt. Most of the time

580
00:24:48,720 --> 00:24:52,800
Speaker 1: it is for consumption, even if it's for renovating a house.

581
00:24:52,880 --> 00:24:55,160
Speaker 1: That typically I consider that to be consumption unless you're

582
00:24:55,480 --> 00:24:57,359
Speaker 1: adding value in such a way that you can also

583
00:24:58,200 --> 00:25:00,640
Speaker 1: consider that an investment, like if you're putting an EIGHTYU

584
00:25:00,720 --> 00:25:02,400
Speaker 1: on to the back of your house or something like that.

585
00:25:02,640 --> 00:25:05,840
Speaker 1: And I think if you'd asked even about using the

586
00:25:05,880 --> 00:25:08,399
Speaker 1: helock money to buy a nicer single family home, we

587
00:25:08,440 --> 00:25:11,000
Speaker 1: would tell you to save up longer. But I think

588
00:25:11,080 --> 00:25:13,360
Speaker 1: the difference in your question here, Danielle, is that you'd

589
00:25:13,359 --> 00:25:15,560
Speaker 1: be cashing out a portion of the value of your

590
00:25:15,600 --> 00:25:20,120
Speaker 1: current successful investment to make another strategic real estate investment.

591
00:25:20,160 --> 00:25:24,280
Speaker 1: And to me, that's different. This is likely the best

592
00:25:24,280 --> 00:25:26,760
Speaker 1: way to get those funds, aside from, like Matt said,

593
00:25:26,800 --> 00:25:29,280
Speaker 1: saving up a bigger cash cushion, This is the best

594
00:25:29,280 --> 00:25:31,280
Speaker 1: way to go about it. And so I would shop

595
00:25:31,320 --> 00:25:33,159
Speaker 1: around with a few local credit units to try and

596
00:25:33,160 --> 00:25:35,040
Speaker 1: get the best rates and then I would say the

597
00:25:35,080 --> 00:25:37,280
Speaker 1: goal should be to pay off this helock with the

598
00:25:37,280 --> 00:25:39,840
Speaker 1: additional income that you're going to generate, the rental income

599
00:25:39,880 --> 00:25:42,800
Speaker 1: you're going to be able to see with that next duplex,

600
00:25:43,119 --> 00:25:46,680
Speaker 1: hopefully eradicating the helock in something like thirty six months

601
00:25:46,720 --> 00:25:49,399
Speaker 1: at the most twenty four months ideally, because if you have,

602
00:25:50,119 --> 00:25:51,760
Speaker 1: if you're saying, oh cool, I'll pay off the helock

603
00:25:51,800 --> 00:25:54,679
Speaker 1: in eleven twelve years, to me, that timeline's too long

604
00:25:54,840 --> 00:25:56,879
Speaker 1: and you're biding off more than you can chew. But

605
00:25:56,920 --> 00:25:59,119
Speaker 1: if you have, if you run the numbers and you're like,

606
00:25:59,160 --> 00:26:01,520
Speaker 1: I can pay off this helock in short order once

607
00:26:01,560 --> 00:26:04,960
Speaker 1: this new investment starts to generate a profit, then I

608
00:26:05,000 --> 00:26:07,600
Speaker 1: think it can make sense and it's within the realm

609
00:26:07,640 --> 00:26:09,879
Speaker 1: of reason to consider using a helock to buy the

610
00:26:09,920 --> 00:26:10,399
Speaker 1: next place.

611
00:26:10,600 --> 00:26:12,600
Speaker 3: Yeah, and you're also likely going to need to season

612
00:26:12,720 --> 00:26:15,720
Speaker 3: those funds for anywhere between sixty and ninety days first,

613
00:26:15,760 --> 00:26:18,480
Speaker 3: which means you'll need to tap the helock and then

614
00:26:18,520 --> 00:26:21,520
Speaker 3: just have those funds sitting in the account that you

615
00:26:21,560 --> 00:26:24,919
Speaker 3: plan to disperse from for that down payment. And so

616
00:26:25,000 --> 00:26:27,920
Speaker 3: having that money sitting there for a while will likely

617
00:26:27,960 --> 00:26:30,200
Speaker 3: be helpful, and it also just what banks want to see, right,

618
00:26:30,560 --> 00:26:32,240
Speaker 3: It depends on the lender as well. It depends on

619
00:26:32,240 --> 00:26:34,960
Speaker 3: the bank or the credit union, because either way they'll

620
00:26:35,000 --> 00:26:38,359
Speaker 3: be accounting for the the money payment that you're making

621
00:26:38,520 --> 00:26:41,080
Speaker 3: exactly towards that helock and your debt to income ratio.

622
00:26:41,359 --> 00:26:42,240
Speaker 2: But just keep in.

623
00:26:42,240 --> 00:26:43,960
Speaker 3: Mind the leverage. It can be a helpful tool for

624
00:26:44,040 --> 00:26:46,760
Speaker 3: wealth building, but it can cut both ways. And that

625
00:26:46,880 --> 00:26:49,159
Speaker 3: is why you want to take on debt with just

626
00:26:49,359 --> 00:26:50,800
Speaker 3: great caution. And I don't want to be the guy

627
00:26:50,840 --> 00:26:52,600
Speaker 3: that's just like raining on your parade here, because it

628
00:26:52,600 --> 00:26:54,280
Speaker 3: does sound like that you are being cautious. It sounds

629
00:26:54,320 --> 00:26:56,080
Speaker 3: like you're being smart about it, but just don't take

630
00:26:56,119 --> 00:26:58,600
Speaker 3: out more than you need in order to buy this

631
00:26:58,720 --> 00:27:02,200
Speaker 3: new income producing set. And if you do go the

632
00:27:02,280 --> 00:27:03,879
Speaker 3: path of taken the helock, we want you to have

633
00:27:03,920 --> 00:27:07,160
Speaker 3: that plan in place in order to eradicate that because

634
00:27:07,160 --> 00:27:10,320
Speaker 3: even though it's not the absolute worst kind of debt

635
00:27:10,359 --> 00:27:12,159
Speaker 3: that we like to see people have, well, fact is

636
00:27:12,200 --> 00:27:14,439
Speaker 3: you're still paying some interest on that because of the

637
00:27:14,440 --> 00:27:16,720
Speaker 3: fact that you didn't go full cash for that downpayment.

638
00:27:16,800 --> 00:27:17,200
Speaker 2: Yeah.

639
00:27:17,440 --> 00:27:19,840
Speaker 1: Yeah, And another thing that Matt's some real estate investors do,

640
00:27:19,880 --> 00:27:21,840
Speaker 1: they'll take helock money out to buy a place in

641
00:27:21,920 --> 00:27:25,560
Speaker 1: cash and they rehabit and then they do cash out refinance.

642
00:27:25,600 --> 00:27:28,320
Speaker 1: I mean, there are all sorts of like funky ways

643
00:27:28,359 --> 00:27:30,560
Speaker 1: that you can do this, that you can buy that

644
00:27:30,600 --> 00:27:33,520
Speaker 1: next investment property. It's just a lot of the ways

645
00:27:33,520 --> 00:27:36,439
Speaker 1: that hardcore real estate investors talk about financing some of

646
00:27:36,480 --> 00:27:40,720
Speaker 1: these deals. I get scared, I get nervous, and to me,

647
00:27:40,800 --> 00:27:43,000
Speaker 1: I wouldn't be willing to take that much risk. So

648
00:27:43,040 --> 00:27:45,639
Speaker 1: I think what we're attempting to say is, like, listen,

649
00:27:45,920 --> 00:27:48,639
Speaker 1: if the numbers are solid and you know what you're doing,

650
00:27:49,000 --> 00:27:51,280
Speaker 1: then this is something I think you can proceed with

651
00:27:51,320 --> 00:27:54,359
Speaker 1: as long as you keep your debt reasonable. But if

652
00:27:54,359 --> 00:27:56,840
Speaker 1: you get way too cozy with debt and you're overleveraging yourself,

653
00:27:57,119 --> 00:28:00,879
Speaker 1: you could find yourself in a really poor position. Especially

654
00:28:00,920 --> 00:28:02,520
Speaker 1: let's say you're to experience a few extra mounts of

655
00:28:02,560 --> 00:28:05,040
Speaker 1: vacancy and some additional repairs and you're like, wait a

656
00:28:05,080 --> 00:28:07,440
Speaker 1: second now, Mike, Like, I can't pay it off anytime soon.

657
00:28:07,640 --> 00:28:09,760
Speaker 1: I actually need to tap it for more money. That's

658
00:28:09,760 --> 00:28:10,680
Speaker 1: what we want you to avoid.

659
00:28:10,760 --> 00:28:12,440
Speaker 3: Yeah, basically, we don't want you to count on the

660
00:28:12,480 --> 00:28:16,000
Speaker 3: absolute best case scenario unfolding in order for this to work, Joel,

661
00:28:16,040 --> 00:28:18,199
Speaker 3: let's get to our next question. And this is a

662
00:28:18,240 --> 00:28:21,119
Speaker 3: listener who is beginning to look ahead. He's starting to

663
00:28:21,119 --> 00:28:23,800
Speaker 3: feel a little uncomfortable with his portfolio allocation.

664
00:28:24,200 --> 00:28:28,680
Speaker 6: Hi Matton, Joel, Raphael from Hillsboro, Oregon. Here. First, I

665
00:28:28,720 --> 00:28:31,160
Speaker 6: would like to thank you for the show, always providing

666
00:28:31,200 --> 00:28:35,320
Speaker 6: great and valuable advice. Now for my question. My broker's

667
00:28:35,400 --> 00:28:38,240
Speaker 6: account is fully invested in stocks, but I wanted to

668
00:28:38,240 --> 00:28:40,880
Speaker 6: gradually convert it to bonds over the coming decade or so,

669
00:28:41,360 --> 00:28:44,280
Speaker 6: and I was wondering if you have any recommendations for

670
00:28:44,320 --> 00:28:47,160
Speaker 6: doing it in a text efficient way. My income is

671
00:28:47,200 --> 00:28:49,360
Speaker 6: not expected to drop during this time and I have

672
00:28:49,440 --> 00:28:52,520
Speaker 6: no losses to harvest. I was talking to an advisor

673
00:28:52,560 --> 00:28:55,880
Speaker 6: and he recommended moving my money into an SMA separately

674
00:28:55,960 --> 00:28:59,880
Speaker 6: managed account, which is supposedly text optimized. But doing them

675
00:29:00,040 --> 00:29:03,560
Speaker 6: out myself, I honestly couldn't see how that provides any benefits.

676
00:29:03,920 --> 00:29:08,480
Speaker 6: Please help me understand if I'm missing something. Thanks again, Raphael.

677
00:29:08,240 --> 00:29:10,680
Speaker 2: Raphael, thank you, thank you for your question. Love where

678
00:29:10,680 --> 00:29:11,600
Speaker 2: your head is at? Here?

679
00:29:11,760 --> 00:29:14,240
Speaker 1: Because now we talk about this all the time, there's, like,

680
00:29:14,400 --> 00:29:17,520
Speaker 1: I think, distinct periods of time when it comes to

681
00:29:17,560 --> 00:29:20,880
Speaker 1: your money. And when you're in your twenties and thirties,

682
00:29:21,240 --> 00:29:23,560
Speaker 1: you're in the wealth building phase of your life. Typically,

683
00:29:24,120 --> 00:29:27,080
Speaker 1: let's say you get into your mid forties, which we're

684
00:29:27,160 --> 00:29:29,760
Speaker 1: rapidly approaching, like, you start to get into maybe more

685
00:29:29,760 --> 00:29:33,880
Speaker 1: of a wealth preservation mindset as you're approaching drawing down

686
00:29:33,880 --> 00:29:36,160
Speaker 1: those sons. It's not like Rafaela doesn't sound like it's

687
00:29:36,160 --> 00:29:38,840
Speaker 1: going to tap this money tomorrow or anytime in the

688
00:29:38,920 --> 00:29:39,760
Speaker 1: super near future.

689
00:29:39,800 --> 00:29:41,880
Speaker 2: It's like a decade out. Yeah, he's in no rush.

690
00:29:42,040 --> 00:29:44,920
Speaker 1: He has chosen to be incredibly stock heavy for the

691
00:29:44,960 --> 00:29:47,440
Speaker 1: wealth building years, which I think makes a lot of sense.

692
00:29:48,320 --> 00:29:50,480
Speaker 1: And then I think he's planning ahead at least for

693
00:29:50,480 --> 00:29:52,960
Speaker 1: the wealth preservation stage, and I think that's wise. The

694
00:29:53,040 --> 00:29:57,320
Speaker 1: closer you get to tapping the accounts, that the money

695
00:29:57,360 --> 00:29:59,320
Speaker 1: that you've been saying, I think some people listening Matt,

696
00:29:59,320 --> 00:30:01,840
Speaker 1: the I've been saving and investing, and all they can

697
00:30:01,840 --> 00:30:04,120
Speaker 1: think about is like continuing to ramp up their investments.

698
00:30:04,160 --> 00:30:06,080
Speaker 1: They're like, I don't even know what it's gonna be

699
00:30:06,200 --> 00:30:08,560
Speaker 1: like to flip that switch where I'm actually drawing down

700
00:30:08,560 --> 00:30:11,480
Speaker 1: on those funds. And it doesn't mean that rafael is

701
00:30:11,480 --> 00:30:12,800
Speaker 1: going to get to the point where he needs no

702
00:30:12,840 --> 00:30:15,120
Speaker 1: stock exposure, because even like a target date fund is

703
00:30:15,120 --> 00:30:17,600
Speaker 1: going to have, at its most conservative something like a

704
00:30:17,600 --> 00:30:20,840
Speaker 1: fifty percent allocation of stocks, you're still gonna want that too,

705
00:30:20,880 --> 00:30:22,720
Speaker 1: because you're gonna want to be able to compound that

706
00:30:22,760 --> 00:30:26,200
Speaker 1: money for decades to come to help to support you

707
00:30:26,200 --> 00:30:29,640
Speaker 1: and your retirement needs. But it also doesn't mean that

708
00:30:29,720 --> 00:30:31,880
Speaker 1: taking some of your chips off of the stock only

709
00:30:31,920 --> 00:30:33,920
Speaker 1: side of the table doesn't make sense. So I think

710
00:30:34,080 --> 00:30:35,520
Speaker 1: I like where Rafael's head's at here.

711
00:30:35,640 --> 00:30:38,680
Speaker 3: Yeah, I was gonna mention that he's from Hillsboro, Oregon,

712
00:30:38,880 --> 00:30:41,200
Speaker 3: which anytime someone mentions like this not only the state

713
00:30:41,240 --> 00:30:42,680
Speaker 3: but also the town, you always.

714
00:30:42,360 --> 00:30:44,760
Speaker 2: Look up where they live. D al You're a stocker

715
00:30:44,800 --> 00:30:47,520
Speaker 2: like that Rafael's specific address. I looked at al No.

716
00:30:47,600 --> 00:30:48,720
Speaker 2: It's a cute little town.

717
00:30:48,760 --> 00:30:52,680
Speaker 3: It's like a suburb of Portland, a little expensive, expensive

718
00:30:52,680 --> 00:30:54,840
Speaker 3: to live there, given the fact that it's also known

719
00:30:54,880 --> 00:30:58,800
Speaker 3: as the Silicon Forest, not like Slicon Valley, but Silicon Forest,

720
00:30:58,920 --> 00:31:01,000
Speaker 3: and that's because Intel is actually headquartered there.

721
00:31:01,000 --> 00:31:01,160
Speaker 4: Oh.

722
00:31:01,200 --> 00:31:02,960
Speaker 2: Interesting, Did you know that? No, didn't know that. It

723
00:31:02,960 --> 00:31:04,360
Speaker 2: seems like a lot I should have known that, being

724
00:31:04,360 --> 00:31:06,320
Speaker 2: from Morgan myself. But oh yeah, well.

725
00:31:06,320 --> 00:31:08,240
Speaker 3: You're only there until you're like six months old or

726
00:31:08,280 --> 00:31:11,840
Speaker 3: something two, But bet you have just as many memories

727
00:31:11,920 --> 00:31:14,040
Speaker 3: of Well you remember things when you're two years old,

728
00:31:14,120 --> 00:31:14,560
Speaker 3: don't you.

729
00:31:14,640 --> 00:31:17,200
Speaker 1: Yeah, I don't really remember anything, Crent, but I when

730
00:31:17,200 --> 00:31:18,760
Speaker 1: I go back and visit, I still love it.

731
00:31:18,800 --> 00:31:20,880
Speaker 2: You feel a kindred spirit. The Pacific Northwest is that

732
00:31:20,960 --> 00:31:21,840
Speaker 2: the folks who live there.

733
00:31:22,080 --> 00:31:26,480
Speaker 3: But Rafael was asking about the separately managed account. We

734
00:31:26,480 --> 00:31:29,720
Speaker 3: don't see that as a great solution. It's no surprise though,

735
00:31:29,720 --> 00:31:33,120
Speaker 3: that your financial advisor would suggest it, telling you that hey,

736
00:31:33,280 --> 00:31:35,160
Speaker 3: I'm going to do all the hard work for you,

737
00:31:35,240 --> 00:31:38,680
Speaker 3: well for a substantial fee. Of course they stand to benefit,

738
00:31:38,720 --> 00:31:41,640
Speaker 3: and there's nothing wrong with hiring an advisor or paying

739
00:31:41,680 --> 00:31:45,360
Speaker 3: for advice. But with an SMA, you are typically paying

740
00:31:45,360 --> 00:31:47,760
Speaker 3: someone to pick stocks. You're paying someone to help you

741
00:31:47,880 --> 00:31:50,560
Speaker 3: with your allocation. But my guess is that you already

742
00:31:50,560 --> 00:31:52,160
Speaker 3: know what it is that you want to do. You're

743
00:31:52,160 --> 00:31:54,480
Speaker 3: just looking for the most tax advantage way to achieve

744
00:31:54,720 --> 00:31:58,000
Speaker 3: greater levels of balance there within that brokerage account. And

745
00:31:58,040 --> 00:32:00,520
Speaker 3: so unless I think you feel the knee need for

746
00:32:00,720 --> 00:32:02,760
Speaker 3: expert help on that front, and if you're willing to

747
00:32:02,760 --> 00:32:04,240
Speaker 3: pay up in order to get it. We think that

748
00:32:04,280 --> 00:32:07,560
Speaker 3: this is most definitely something that you can di y. Yeah, yeah,

749
00:32:07,600 --> 00:32:08,960
Speaker 3: you've done the hard part.

750
00:32:09,120 --> 00:32:11,920
Speaker 1: And so do you want to start paying someone one

751
00:32:11,960 --> 00:32:15,120
Speaker 1: percent of assets under management in order to put you

752
00:32:15,160 --> 00:32:19,920
Speaker 1: in this specialized account to try and offer you more

753
00:32:19,960 --> 00:32:23,360
Speaker 1: specific investment options. I don't think it makes a whole

754
00:32:23,360 --> 00:32:24,600
Speaker 1: lot of sense. I think you're right, man, and I

755
00:32:24,640 --> 00:32:27,480
Speaker 1: think the average person listening to this podcast one has

756
00:32:27,520 --> 00:32:31,040
Speaker 1: never heard of a separately managed account and also doesn't

757
00:32:31,240 --> 00:32:34,040
Speaker 1: need one to achieve their goals. One of the things

758
00:32:34,080 --> 00:32:36,520
Speaker 1: that typically gets talked about when we're talking about SMAs,

759
00:32:36,520 --> 00:32:39,080
Speaker 1: when an advisor will attempt to sell you one, is

760
00:32:39,760 --> 00:32:42,680
Speaker 1: you'll hear the word customization in the sales pitch. It's

761
00:32:42,760 --> 00:32:44,920
Speaker 1: it's a lot about flexibility and customization.

762
00:32:44,920 --> 00:32:47,200
Speaker 3: It's going to be all about Raphael. Yeah, let's talk

763
00:32:47,200 --> 00:32:49,560
Speaker 3: about your needs. We're the exact thing they're going to say,

764
00:32:49,560 --> 00:32:50,880
Speaker 3: your name by bunch that works for you.

765
00:32:51,280 --> 00:32:53,719
Speaker 2: Look you directly in the eyes. That's right. We know you,

766
00:32:53,960 --> 00:32:55,800
Speaker 2: we know what you need. But do you really you

767
00:32:56,080 --> 00:32:57,880
Speaker 2: live in the You live in Silicon forest, don't you?

768
00:32:58,440 --> 00:33:00,160
Speaker 2: We know you, Rafael, so clearly.

769
00:32:59,840 --> 00:33:02,600
Speaker 1: You, sir, are you going to need a portfolio allocation

770
00:33:02,880 --> 00:33:04,440
Speaker 1: more along the lines of this, and it's going to

771
00:33:04,440 --> 00:33:07,000
Speaker 1: be highly specified, tailored to you.

772
00:33:07,320 --> 00:33:08,040
Speaker 2: But do you need that?

773
00:33:08,600 --> 00:33:12,400
Speaker 1: We doubt it. It's highly unlikely. Index funds still make

774
00:33:12,440 --> 00:33:15,240
Speaker 1: a lot of sense for the average person or even

775
00:33:15,280 --> 00:33:17,760
Speaker 1: for the unaveraged person who has been able to amass

776
00:33:17,800 --> 00:33:20,280
Speaker 1: the amount you've been able to do, Raphael. So it's

777
00:33:20,320 --> 00:33:22,920
Speaker 1: important to note we're talking about brokerage accounts here too

778
00:33:23,320 --> 00:33:27,200
Speaker 1: when you're talking about rebalancing the investments that you currently have.

779
00:33:27,520 --> 00:33:30,160
Speaker 1: I'm sure you have some money in tax advantaged accounts too,

780
00:33:30,240 --> 00:33:32,720
Speaker 1: But inside of those tax advantage accounts, you can buy

781
00:33:32,800 --> 00:33:36,840
Speaker 1: and sell funds, updating your holdings without any tax consequences whatsoever,

782
00:33:37,160 --> 00:33:39,840
Speaker 1: which is cool, But you have to be more intentional

783
00:33:40,040 --> 00:33:44,000
Speaker 1: with holdings inside of a brokerage account because rebalancing can

784
00:33:44,040 --> 00:33:47,120
Speaker 1: come with tax consequences, Like depending on how long you've

785
00:33:47,160 --> 00:33:49,880
Speaker 1: held a particular position, you can be taxed at the

786
00:33:49,880 --> 00:33:53,080
Speaker 1: more favorable capital gains tax rate, or you might find

787
00:33:53,080 --> 00:33:56,320
Speaker 1: yourself owing tax that mirrors your top income racket, which

788
00:33:56,320 --> 00:33:59,600
Speaker 1: should be double or more the capital gains tax rate.

789
00:33:59,640 --> 00:34:02,760
Speaker 1: So while rebalancing it can be wise, and it can

790
00:34:02,800 --> 00:34:05,560
Speaker 1: be something smart to plan for, do it over time,

791
00:34:05,840 --> 00:34:09,160
Speaker 1: and with the tax consequences as a key consideration of

792
00:34:09,200 --> 00:34:10,080
Speaker 1: win and how you do it.

793
00:34:10,200 --> 00:34:10,439
Speaker 2: Yeah.

794
00:34:10,520 --> 00:34:12,040
Speaker 3: Yeah, So one of the routes you can take in

795
00:34:12,120 --> 00:34:15,479
Speaker 3: order to not generate a big old tax bill would

796
00:34:15,480 --> 00:34:18,560
Speaker 3: be to actually not sell any positions at all, not

797
00:34:18,600 --> 00:34:21,840
Speaker 3: sell any securities, and to just contribute new investment dollars

798
00:34:22,080 --> 00:34:25,280
Speaker 3: directly into something, let's say like a total bond index

799
00:34:25,320 --> 00:34:28,680
Speaker 3: fund as a way of rebalancing. And so by doing that,

800
00:34:28,719 --> 00:34:31,880
Speaker 3: with every single month or whatever you're purchasing cycle that

801
00:34:31,920 --> 00:34:34,280
Speaker 3: you happen to be investing in, you're going to slowly

802
00:34:34,360 --> 00:34:37,560
Speaker 3: but surely you're going to tone down the relative percentage

803
00:34:37,640 --> 00:34:40,920
Speaker 3: of stocks that you own relative to the bonds that

804
00:34:40,960 --> 00:34:43,520
Speaker 3: you now own in that brokerage account. And that's ultimately

805
00:34:43,520 --> 00:34:45,160
Speaker 3: what you're after, right, And so if you opt to

806
00:34:45,160 --> 00:34:48,319
Speaker 3: take this route, we're achieving what you want, slowly but

807
00:34:48,360 --> 00:34:50,799
Speaker 3: surely without creating any sort of tax burden. Yeah, you're

808
00:34:50,800 --> 00:34:53,960
Speaker 3: doing it the most tax within the most tax efficient manner.

809
00:34:54,040 --> 00:34:56,600
Speaker 1: Yeah, And it sounds like this is not something that

810
00:34:56,719 --> 00:34:57,920
Speaker 1: needs to happen overnight.

811
00:34:58,040 --> 00:34:59,760
Speaker 2: So why immediate?

812
00:34:59,760 --> 00:35:02,080
Speaker 1: Why sell stuff and buy stuff and create a big

813
00:35:02,120 --> 00:35:04,160
Speaker 1: tax burden for yourself when, like you said, you can

814
00:35:04,239 --> 00:35:08,880
Speaker 1: just essentially funnel those new purchases into something that's more conservative,

815
00:35:08,880 --> 00:35:10,920
Speaker 1: and then you're just buying that and building up your

816
00:35:10,920 --> 00:35:12,440
Speaker 1: positions slowly, especially.

817
00:35:12,160 --> 00:35:14,040
Speaker 3: Because he said too that he's not expecting his income

818
00:35:14,040 --> 00:35:15,600
Speaker 3: to go down, so I'm assuming that he's going to

819
00:35:15,640 --> 00:35:17,560
Speaker 3: be able to continue investing at the same clip that

820
00:35:17,600 --> 00:35:20,160
Speaker 3: he was doing before. And so that's again with him

821
00:35:20,200 --> 00:35:22,360
Speaker 3: having a decade. You know, he's got ten years of

822
00:35:22,400 --> 00:35:24,160
Speaker 3: runway ahead of them. That's a lot of bonds that

823
00:35:24,200 --> 00:35:26,640
Speaker 3: you can buy to where he would feel much more comfortable.

824
00:35:26,680 --> 00:35:28,320
Speaker 1: I think probably in like three years, he's going to

825
00:35:28,360 --> 00:35:30,480
Speaker 1: be like, wait a second, Okay, now I'm relegated there.

826
00:35:30,520 --> 00:35:32,319
Speaker 1: I need to actually start buying some more stocks again.

827
00:35:32,320 --> 00:35:35,080
Speaker 1: And maybe then you're you're splitting your purchases fifty to

828
00:35:35,120 --> 00:35:37,760
Speaker 1: fifty at that point, But yeah, I think that's probably

829
00:35:37,760 --> 00:35:39,680
Speaker 1: the best way to do it. You're building up even

830
00:35:39,680 --> 00:35:42,880
Speaker 1: more significant positions, You're you're continuing to keep the stocks

831
00:35:42,920 --> 00:35:45,799
Speaker 1: that you have around, and you're punting any tax bill

832
00:35:46,120 --> 00:35:49,200
Speaker 1: until even further down the line in retirement. You can

833
00:35:49,239 --> 00:35:52,439
Speaker 1: do the same thing with distributions, right that you're reinvesting. Yeah,

834
00:35:52,600 --> 00:35:56,680
Speaker 1: just reinvest those into bonds instead of total how the

835
00:35:56,800 --> 00:35:57,960
Speaker 1: market fund that you're using.

836
00:35:57,880 --> 00:36:00,560
Speaker 3: Yeah, I don't have those automatically reinvest and whatever they're

837
00:36:00,520 --> 00:36:01,160
Speaker 3: coming from.

838
00:36:01,239 --> 00:36:03,359
Speaker 1: Yeah, and then it might take it. Like I said,

839
00:36:03,400 --> 00:36:05,920
Speaker 1: I think a few years of these steady contributions to

840
00:36:05,920 --> 00:36:08,080
Speaker 1: get to that comfortable place where you're like, cool, I

841
00:36:08,080 --> 00:36:10,000
Speaker 1: did the wealth building thing. Now I feel comfortable in

842
00:36:10,000 --> 00:36:12,440
Speaker 1: the wealth preservation piece. I've been able to achieve this

843
00:36:12,560 --> 00:36:15,600
Speaker 1: kind of balance that I'm looking for. But because you're

844
00:36:15,600 --> 00:36:18,400
Speaker 1: not in a hurry, you have so much time to

845
00:36:18,440 --> 00:36:21,240
Speaker 1: get to that balance point. It's amazing how planning ahead,

846
00:36:21,520 --> 00:36:25,120
Speaker 1: giving yourself time can help you from a tax perspective

847
00:36:25,200 --> 00:36:28,200
Speaker 1: to avoid some of the worst possible investing mistakes. And

848
00:36:28,680 --> 00:36:31,239
Speaker 1: we're always trying to but you know, grow our money

849
00:36:31,280 --> 00:36:33,960
Speaker 1: and minimize taxes, like those are two of the biggest

850
00:36:33,960 --> 00:36:35,600
Speaker 1: things that you need to think about as an investor,

851
00:36:35,880 --> 00:36:38,319
Speaker 1: and Raphael is thinking about both of those things. He's

852
00:36:38,320 --> 00:36:41,439
Speaker 1: also thinking about minimizing downside risk, and so I think

853
00:36:42,000 --> 00:36:44,799
Speaker 1: he's got the whole picture in mind. Don't necessarily listen

854
00:36:44,840 --> 00:36:46,760
Speaker 1: to that financial advisor and hire them on the spot

855
00:36:46,840 --> 00:36:48,720
Speaker 1: to do something we think you can do for yourself

856
00:36:48,760 --> 00:36:49,719
Speaker 1: pretty easily.

857
00:36:49,400 --> 00:36:51,240
Speaker 3: Totally, and if it's something that you're wanting to achieve

858
00:36:51,280 --> 00:36:54,440
Speaker 3: more quickly too, don't forget you. You can donate securities

859
00:36:54,440 --> 00:36:56,320
Speaker 3: that you have as well through something like a donor

860
00:36:56,360 --> 00:36:58,719
Speaker 3: advised fund, which is where we've got an article up

861
00:36:58,719 --> 00:37:01,280
Speaker 3: on the website talking about how we're big fans of Daffy.

862
00:37:01,560 --> 00:37:04,160
Speaker 3: But what's so great there is that even like there's

863
00:37:04,160 --> 00:37:06,279
Speaker 3: a lot of smaller five oh one c threes that

864
00:37:06,280 --> 00:37:10,040
Speaker 3: aren't set up to receive securities, and so by contributing

865
00:37:10,080 --> 00:37:12,600
Speaker 3: stocks to your donor advised fund, they take care of

866
00:37:12,600 --> 00:37:15,000
Speaker 3: it for you, and then you can choose what charities

867
00:37:15,000 --> 00:37:16,799
Speaker 3: that you want to give to further, you know, further

868
00:37:16,840 --> 00:37:17,399
Speaker 3: on down the line.

869
00:37:17,440 --> 00:37:19,080
Speaker 1: Yeah, So instead of giving me a huge cash from

870
00:37:19,120 --> 00:37:22,840
Speaker 1: your savings for checking account, give from your appreciated securities.

871
00:37:23,080 --> 00:37:24,400
Speaker 1: You're minimizing your tax bill.

872
00:37:24,400 --> 00:37:26,120
Speaker 3: To get more bang for your buck, yeah, because, yeah,

873
00:37:26,360 --> 00:37:29,640
Speaker 3: you're avoiding tax completely while at the same time rebalancing.

874
00:37:29,239 --> 00:37:31,279
Speaker 2: Your portfolio as well. So that could be a great

875
00:37:31,320 --> 00:37:31,880
Speaker 2: solution for you.

876
00:37:32,000 --> 00:37:34,080
Speaker 1: And it's a stone that often goes unturned, like most

877
00:37:34,120 --> 00:37:35,799
Speaker 1: people don't think about that, but you're right and giving

878
00:37:35,840 --> 00:37:37,960
Speaker 1: it to the donor bus fund and then giving your

879
00:37:38,040 --> 00:37:39,640
Speaker 1: charities that can be a big tax one.

880
00:37:39,760 --> 00:37:41,560
Speaker 2: Absolutely, all right, Joel, We've got more to get to.

881
00:37:41,680 --> 00:37:43,880
Speaker 3: We're gonna hear from a listener who's looking for the

882
00:37:43,920 --> 00:37:46,359
Speaker 3: next hot stock tip. We'll get to that more right

883
00:37:46,400 --> 00:37:56,360
Speaker 3: after this, all right, Matt, Tim gonna get more listener questions.

884
00:37:56,600 --> 00:37:59,160
Speaker 3: This next question is, of course the Facebook question of

885
00:37:59,200 --> 00:37:59,480
Speaker 3: the week.

886
00:38:00,239 --> 00:38:01,000
Speaker 2: This is a long one.

887
00:38:01,200 --> 00:38:04,520
Speaker 1: Yeah, it's quite short, quite to the point. This comes

888
00:38:04,520 --> 00:38:06,719
Speaker 1: from Chad and he says, who do you follow for

889
00:38:06,719 --> 00:38:09,439
Speaker 1: stock tips? This was posted in our Facebook group, of course. Yeah,

890
00:38:09,480 --> 00:38:11,360
Speaker 1: and so he's asking all the how to money listeners,

891
00:38:11,400 --> 00:38:13,799
Speaker 1: who do you follow for stock tips? Talking people like

892
00:38:13,880 --> 00:38:16,520
Speaker 1: Jim Kramer here meant that's the question.

893
00:38:16,640 --> 00:38:17,200
Speaker 2: Yeah.

894
00:38:17,239 --> 00:38:19,560
Speaker 1: So Jim Kramer is like probably one of the most

895
00:38:19,560 --> 00:38:22,920
Speaker 1: famous people because he's on CNBC and Mad Money.

896
00:38:22,960 --> 00:38:24,040
Speaker 2: Is this still on? I think he is.

897
00:38:24,120 --> 00:38:26,160
Speaker 1: Yeah, he's still on TV. Got the buzzers and the

898
00:38:26,160 --> 00:38:27,839
Speaker 1: bells and the whistles, and so you know why.

899
00:38:27,719 --> 00:38:29,840
Speaker 2: I guess he needs all that in order to maintain

900
00:38:29,920 --> 00:38:31,839
Speaker 2: everyone's attention. You've got to keep the ratings up right.

901
00:38:32,239 --> 00:38:36,080
Speaker 3: And so, Joe, why don't we have buzzers and sirens

902
00:38:36,080 --> 00:38:38,479
Speaker 3: going off and I've only seen him.

903
00:38:38,640 --> 00:38:41,160
Speaker 1: We should like memes or clips of his show. Yeah,

904
00:38:41,160 --> 00:38:43,279
Speaker 1: I've never literally never actually watched it, but yeah he is.

905
00:38:43,320 --> 00:38:45,759
Speaker 1: He's the kind of guy. And there's especially in the

906
00:38:45,920 --> 00:38:48,239
Speaker 1: age of fragmented media, there are more and more Jim

907
00:38:48,280 --> 00:38:50,080
Speaker 1: Kramer's out there or want to be Jim Kramer's out

908
00:38:50,080 --> 00:38:53,319
Speaker 1: there who are giving specific stock buying tips. But I

909
00:38:53,440 --> 00:38:55,600
Speaker 1: love the how to Money Facebook group for so many reasons,

910
00:38:55,719 --> 00:38:57,040
Speaker 1: and if you're listening and you're not a member, you

911
00:38:57,040 --> 00:38:59,759
Speaker 1: should go join it. But the group responses were so

912
00:38:59,800 --> 00:39:02,560
Speaker 1: good that no names were mentioned in the comments, so

913
00:39:02,640 --> 00:39:06,240
Speaker 1: the main thrust was essentially right. Yeah, nobody was saying, actually,

914
00:39:06,239 --> 00:39:07,959
Speaker 1: this is the guy I follow. They were just saying,

915
00:39:08,040 --> 00:39:10,920
Speaker 1: we don't do that here, like, that's not what we

916
00:39:11,000 --> 00:39:13,360
Speaker 1: do as hod of money listeners. And they're right, you know,

917
00:39:13,600 --> 00:39:15,960
Speaker 1: we're not fans you and me of stock picking and

918
00:39:16,080 --> 00:39:18,640
Speaker 1: the people who are the stockpicking types who are throwing

919
00:39:18,640 --> 00:39:21,640
Speaker 1: out ticker symbols or hey, guess what I'm forecasting in

920
00:39:21,680 --> 00:39:24,440
Speaker 1: Nvidia to smash returns over the next five years. They're

921
00:39:24,480 --> 00:39:27,120
Speaker 1: going to be four times the size of Apple. Like, no,

922
00:39:27,160 --> 00:39:29,400
Speaker 1: that's just not the kind of stuff we pay attention

923
00:39:29,480 --> 00:39:31,840
Speaker 1: to I guess if you're so inclined, I would go

924
00:39:31,880 --> 00:39:35,359
Speaker 1: back and listen to our conversation with Brian Ferraldi. He's

925
00:39:35,360 --> 00:39:37,319
Speaker 1: not the kind of guy either who's really throwing out

926
00:39:37,400 --> 00:39:40,040
Speaker 1: names and ticker symbols, although he is a fan of

927
00:39:40,040 --> 00:39:42,920
Speaker 1: buying individual stocks in addition to index one. So he

928
00:39:42,960 --> 00:39:45,759
Speaker 1: does both. But he's also honest about what it takes

929
00:39:45,840 --> 00:39:48,800
Speaker 1: to do well. He's honest about his long term view

930
00:39:49,040 --> 00:39:51,520
Speaker 1: and about the successes and the failures that he's had.

931
00:39:52,120 --> 00:39:54,760
Speaker 1: He discusses the fact that there's a lot of research

932
00:39:55,120 --> 00:39:57,719
Speaker 1: that if you're going to invest in individual stocks, you

933
00:39:57,840 --> 00:40:00,920
Speaker 1: have to be able to withstand higher level of volatility

934
00:40:01,280 --> 00:40:03,120
Speaker 1: and you have to have that long term mindset in

935
00:40:03,239 --> 00:40:05,399
Speaker 1: order to be successful. So if you're kind of saying,

936
00:40:05,400 --> 00:40:07,799
Speaker 1: what's the hot stock of the minute, that's not what

937
00:40:07,800 --> 00:40:10,400
Speaker 1: he's into either. He's about investing in companies that he

938
00:40:10,480 --> 00:40:13,880
Speaker 1: trusts and thinks have a long term potential future in

939
00:40:13,960 --> 00:40:16,640
Speaker 1: this right, Yeah, and so he has done well. But

940
00:40:17,000 --> 00:40:19,359
Speaker 1: I think but even sometimes when people ask this question,

941
00:40:19,360 --> 00:40:20,480
Speaker 1: mat they're talking about day trading.

942
00:40:20,600 --> 00:40:23,160
Speaker 3: Sure, sure, and even still he's done well, but he

943
00:40:23,480 --> 00:40:25,680
Speaker 3: also only invests his own money, So like you might

944
00:40:25,719 --> 00:40:27,600
Speaker 3: be thinking, well, why don't why don't you guys let

945
00:40:27,640 --> 00:40:28,560
Speaker 3: Brian invest your money.

946
00:40:28,600 --> 00:40:30,799
Speaker 2: He refuses, Yeah, he won't do it.

947
00:40:30,960 --> 00:40:32,840
Speaker 3: He's willing to take those kind of risks because he

948
00:40:32,920 --> 00:40:34,960
Speaker 3: knows that he can handle the ups and downs. And

949
00:40:35,000 --> 00:40:37,000
Speaker 3: like you said, that volatility, you have to you have

950
00:40:37,040 --> 00:40:39,040
Speaker 3: to have the right mindset in order to handle some

951
00:40:39,080 --> 00:40:41,480
Speaker 3: of the extreme volatility that you're going to get when

952
00:40:41,480 --> 00:40:43,760
Speaker 3: you do invest in single individual companies.

953
00:40:43,760 --> 00:40:45,400
Speaker 1: I mean, there's so many examples we could point out.

954
00:40:45,440 --> 00:40:48,239
Speaker 1: Do you remember when like Meta Facebook basically when the

955
00:40:48,320 --> 00:40:50,399
Speaker 1: stock just like dropped off a cliff and it's been

956
00:40:50,440 --> 00:40:53,000
Speaker 1: crushing actually kind of since that day. That was maybe

957
00:40:53,000 --> 00:40:54,680
Speaker 1: a couple years ago, and it's been crushing kind of

958
00:40:54,719 --> 00:40:57,080
Speaker 1: in the aftermath. And it's one of those things where

959
00:40:57,120 --> 00:40:59,440
Speaker 1: like we'll continue to do that. I don't know, like,

960
00:40:59,640 --> 00:41:02,360
Speaker 1: are the it is the virtual reality where that the

961
00:41:02,400 --> 00:41:05,040
Speaker 1: Mark Zuckerberger is creating and it's Facebook as an entity

962
00:41:05,120 --> 00:41:06,759
Speaker 1: going to stick around in this I don't know, like

963
00:41:07,239 --> 00:41:11,440
Speaker 1: it's but if you have that conviction right that Meta

964
00:41:11,560 --> 00:41:13,000
Speaker 1: is going to be a company that stands to test

965
00:41:13,000 --> 00:41:15,440
Speaker 1: the time. And you essentially want your money to follow

966
00:41:15,480 --> 00:41:17,480
Speaker 1: your mouth or your heart in that I'm okay with

967
00:41:17,520 --> 00:41:20,719
Speaker 1: that as long as you do it reasonably and you

968
00:41:20,760 --> 00:41:22,279
Speaker 1: have that conviction to hold on to it for the

969
00:41:22,320 --> 00:41:22,719
Speaker 1: long term.

970
00:41:22,800 --> 00:41:23,000
Speaker 5: Yeah.

971
00:41:23,000 --> 00:41:26,040
Speaker 3: And what's reasonable for the vast majority of investors and

972
00:41:26,080 --> 00:41:28,160
Speaker 3: certainly for the vast majority of folks who are listening

973
00:41:28,200 --> 00:41:31,160
Speaker 3: to this podcast is keeping that limited to just five

974
00:41:31,200 --> 00:41:35,120
Speaker 3: percent of your overall portfolio. And Joel, like, you just

975
00:41:35,120 --> 00:41:37,640
Speaker 3: said something about putting your money where your mouth is.

976
00:41:38,120 --> 00:41:40,400
Speaker 3: This is like the best example I think of this phrase,

977
00:41:40,520 --> 00:41:42,520
Speaker 3: like put your money where your mouth is, because we'll

978
00:41:42,520 --> 00:41:44,920
Speaker 3: literally this what we do. We talk about money all day,

979
00:41:44,960 --> 00:41:48,279
Speaker 3: so it seems quite literal. But I checked because I

980
00:41:48,320 --> 00:41:50,280
Speaker 3: own some individual companies. Now I was curious.

981
00:41:50,320 --> 00:41:51,920
Speaker 2: I was like, oh, man, I wonder what.

982
00:41:51,920 --> 00:41:54,960
Speaker 3: The overall percentage of my portfolio is that invested in

983
00:41:55,000 --> 00:41:58,880
Speaker 3: single stocks. And I also lump single companies in with

984
00:41:58,960 --> 00:42:02,040
Speaker 3: crypto as well, because any of those basically non indexed

985
00:42:02,400 --> 00:42:04,560
Speaker 3: investments that I have, I don't want any of that

986
00:42:04,760 --> 00:42:06,000
Speaker 3: to exceed five percent.

987
00:42:06,160 --> 00:42:07,719
Speaker 2: Yeah. And do you want to.

988
00:42:07,680 --> 00:42:10,560
Speaker 3: Guess as to what percentage I have invested in single

989
00:42:10,560 --> 00:42:12,360
Speaker 3: companies in single stocks plus crypto.

990
00:42:12,360 --> 00:42:14,719
Speaker 2: I'm gonna say one and a half percent. I would have.

991
00:42:14,719 --> 00:42:19,080
Speaker 3: Guessed something in that line as well. Point three percent. Okay,

992
00:42:19,239 --> 00:42:21,600
Speaker 3: point three percent, dude, it's almost non existent. And I,

993
00:42:21,640 --> 00:42:24,400
Speaker 3: you know, got some Netflix they've been doing pretty well

994
00:42:24,400 --> 00:42:26,040
Speaker 3: over the past couple years. Would have expected it to

995
00:42:26,400 --> 00:42:28,920
Speaker 3: be a little bit higher, maybe some of my let

996
00:42:28,960 --> 00:42:31,400
Speaker 3: those winners run, but it was not the case. I

997
00:42:31,440 --> 00:42:33,160
Speaker 3: was actually pretty shocked at the fact that I have

998
00:42:33,320 --> 00:42:35,640
Speaker 3: less than one percent invested. This is an example. This

999
00:42:35,719 --> 00:42:37,399
Speaker 3: is an instance where we can say, or at least

1000
00:42:37,400 --> 00:42:39,680
Speaker 3: where I can say, do as I say, and as

1001
00:42:39,719 --> 00:42:41,560
Speaker 3: I do. Yeah, no, same here. I don't know the

1002
00:42:41,560 --> 00:42:44,080
Speaker 3: actual percentage, but my guess is, if I'm like adding

1003
00:42:44,080 --> 00:42:44,719
Speaker 3: it up in my head real.

1004
00:42:44,760 --> 00:42:46,160
Speaker 2: Quick, you're like, no, I got a cool fifteen to

1005
00:42:46,160 --> 00:42:47,239
Speaker 2: twenty percent in.

1006
00:42:48,400 --> 00:42:51,840
Speaker 1: Meta, right, it probably it's probably one percent maybe less

1007
00:42:51,960 --> 00:42:54,239
Speaker 1: of my overah holdings. And I just put you're right,

1008
00:42:54,320 --> 00:42:56,120
Speaker 1: it's for me. It's a blowing off steam thing. It's

1009
00:42:56,200 --> 00:42:58,880
Speaker 1: kind of like a fun It is fun, and we

1010
00:42:58,880 --> 00:43:00,560
Speaker 1: don't think most of investing should be fun. We think

1011
00:43:00,600 --> 00:43:03,000
Speaker 1: life should be fun, but investing should be boring. And

1012
00:43:03,239 --> 00:43:05,319
Speaker 1: the more you stick to boring investing, the more fun

1013
00:43:05,400 --> 00:43:06,080
Speaker 1: your life can be.

1014
00:43:06,080 --> 00:43:07,440
Speaker 2: Because you're not as.

1015
00:43:07,280 --> 00:43:10,719
Speaker 1: Worried or anxious about how a particular stock is performing

1016
00:43:10,800 --> 00:43:14,239
Speaker 1: in a given day, week, or season. So it can

1017
00:43:14,239 --> 00:43:17,560
Speaker 1: not only be fun but scary. Right things aren't doing.

1018
00:43:17,400 --> 00:43:18,080
Speaker 2: So exactly right.

1019
00:43:18,120 --> 00:43:20,760
Speaker 1: When it's like up into the right, you're like, yeah, whooo.

1020
00:43:20,840 --> 00:43:23,320
Speaker 1: It's like when your team is winning in playoff baseball,

1021
00:43:23,320 --> 00:43:25,400
Speaker 1: but if you just lost the first three games in

1022
00:43:25,440 --> 00:43:28,000
Speaker 1: a seven game series, you're freaking out right, and so

1023
00:43:28,239 --> 00:43:29,680
Speaker 1: you don't want to be in that position. By the way,

1024
00:43:29,680 --> 00:43:32,560
Speaker 1: there was like a literally an inverse etf of Jim

1025
00:43:32,600 --> 00:43:36,680
Speaker 1: Kramer picks that was available that was publicly traded, which

1026
00:43:36,719 --> 00:43:39,120
Speaker 1: is just hilarious, man, that people can invest in the

1027
00:43:39,160 --> 00:43:41,680
Speaker 1: opposite of whatever Jim Kramer says. And there's a reason

1028
00:43:41,719 --> 00:43:44,680
Speaker 1: I think funds like that came into being, and it's

1029
00:43:44,719 --> 00:43:47,080
Speaker 1: because people saw the bells and the whistles and the

1030
00:43:47,080 --> 00:43:49,720
Speaker 1: silliness of it all, and they said, hey, actually, maybe

1031
00:43:49,760 --> 00:43:52,000
Speaker 1: if you do exactly the opposite of what this guy says,

1032
00:43:52,000 --> 00:43:54,360
Speaker 1: you might perform better. And the truth is, buying the

1033
00:43:54,360 --> 00:43:57,000
Speaker 1: index fund is probably the best way to go, not

1034
00:43:57,080 --> 00:43:59,200
Speaker 1: listening to any individual stock advice giver.

1035
00:43:59,440 --> 00:44:01,680
Speaker 3: That's right, We've got time for one more here. Let's

1036
00:44:01,920 --> 00:44:04,560
Speaker 3: take an email from Janine and she wrote, I have

1037
00:44:04,719 --> 00:44:07,360
Speaker 3: very good credit, no debt, and I'm getting new windows

1038
00:44:07,400 --> 00:44:08,000
Speaker 3: from my home.

1039
00:44:08,239 --> 00:44:09,600
Speaker 2: I want to use my card with.

1040
00:44:09,560 --> 00:44:11,560
Speaker 3: The best benefits, but all of them seem to have

1041
00:44:11,680 --> 00:44:14,600
Speaker 3: one percent only for this type of use. Your info

1042
00:44:14,719 --> 00:44:16,600
Speaker 3: seems to show a City card that will give me

1043
00:44:16,640 --> 00:44:19,719
Speaker 3: two percent City double cash card. But is there a

1044
00:44:19,840 --> 00:44:22,640
Speaker 3: charge to apply for it or an annual fee? I

1045
00:44:22,680 --> 00:44:24,640
Speaker 3: can't find that info as of right now. I'll put

1046
00:44:24,640 --> 00:44:27,160
Speaker 3: the deposit on one of my cards and the first

1047
00:44:27,160 --> 00:44:30,120
Speaker 3: half of the remainder on another one, intending to use

1048
00:44:30,160 --> 00:44:32,080
Speaker 3: their float and pay it off when the bill comes.

1049
00:44:32,560 --> 00:44:34,680
Speaker 3: The last part will be due when they install, so

1050
00:44:34,680 --> 00:44:36,759
Speaker 3: I have time to figure something out before then.

1051
00:44:37,400 --> 00:44:38,160
Speaker 2: So that's one part of it.

1052
00:44:38,160 --> 00:44:40,279
Speaker 3: She's asking about a specific card, and then she wrote,

1053
00:44:40,280 --> 00:44:42,440
Speaker 3: the other thing that confuses me is my friends apply

1054
00:44:42,520 --> 00:44:45,560
Speaker 3: for home equity loans for this type of thing. Why

1055
00:44:45,760 --> 00:44:47,879
Speaker 3: how does that make sense? So, Joe, are you want

1056
00:44:47,880 --> 00:44:49,440
Speaker 3: to start with question A or question B?

1057
00:44:49,600 --> 00:44:51,680
Speaker 2: Okay? Can I start with actually question ce the one

1058
00:44:51,680 --> 00:44:52,440
Speaker 2: that didn't get asked?

1059
00:44:52,480 --> 00:44:55,120
Speaker 1: Well, we're reading between the lines. That's my favorite thing

1060
00:44:55,120 --> 00:44:56,839
Speaker 1: to do. First thing starts. I just wanted to mention

1061
00:44:57,000 --> 00:44:59,520
Speaker 1: that if you're getting new windows at your house. There

1062
00:44:59,520 --> 00:45:02,759
Speaker 1: are energy efficient tax credits. Oh yeah, don't forget about those.

1063
00:45:02,800 --> 00:45:05,360
Speaker 1: Don't forget to claim those, because you might be eligible

1064
00:45:05,400 --> 00:45:08,000
Speaker 1: for a significant chunk. And let's say you do some

1065
00:45:08,040 --> 00:45:10,040
Speaker 1: of those windows this year, you do some of those

1066
00:45:10,080 --> 00:45:12,560
Speaker 1: windows next year, you you might be able to then

1067
00:45:12,880 --> 00:45:15,640
Speaker 1: kind of get the because there's like limits on annual

1068
00:45:15,680 --> 00:45:17,640
Speaker 1: limits on what you can claim. That's right, you might

1069
00:45:17,640 --> 00:45:19,200
Speaker 1: be able to double the amount.

1070
00:45:18,960 --> 00:45:21,360
Speaker 2: Of tax credit you receive. That's true. Do some in December,

1071
00:45:21,360 --> 00:45:22,040
Speaker 2: some of January.

1072
00:45:22,080 --> 00:45:23,440
Speaker 3: So get that quote and see if they're going to

1073
00:45:23,480 --> 00:45:26,080
Speaker 3: charge you more for coming out, right, because they might.

1074
00:45:26,320 --> 00:45:28,839
Speaker 2: They might, they might. If they don't, why not chop

1075
00:45:28,840 --> 00:45:29,200
Speaker 2: that thing up.

1076
00:45:29,239 --> 00:45:31,520
Speaker 1: It's worth considering. All right, let's get to whether it

1077
00:45:31,600 --> 00:45:34,080
Speaker 1: was A or B or whatever one of the tool

1078
00:45:34,120 --> 00:45:36,239
Speaker 1: We'll start talking about credit cards here the UH and

1079
00:45:36,480 --> 00:45:38,160
Speaker 1: Janine mentioned the City Double Cash card.

1080
00:45:38,320 --> 00:45:39,040
Speaker 2: That's a great card.

1081
00:45:39,520 --> 00:45:41,720
Speaker 1: It's one of the rare cards that offers two percent

1082
00:45:41,760 --> 00:45:44,600
Speaker 1: cash back on all purchases. I think there's like literally

1083
00:45:44,640 --> 00:45:47,760
Speaker 1: three of them maybe in existence. And so we're totally

1084
00:45:47,800 --> 00:45:51,600
Speaker 1: good with you putting the window purchases on that credit card.

1085
00:45:52,080 --> 00:45:53,600
Speaker 1: And we love that you're planning to pay the pay

1086
00:45:53,640 --> 00:45:55,440
Speaker 1: the bill on time and in full when it comes.

1087
00:45:55,719 --> 00:45:58,240
Speaker 1: That is obviously key when we're talking about using credit

1088
00:45:58,239 --> 00:46:00,880
Speaker 1: cards doing it wisely. And by the way, this is

1089
00:46:00,960 --> 00:46:03,799
Speaker 1: likely a bigger purchase, so you might even want to

1090
00:46:03,800 --> 00:46:06,000
Speaker 1: consider I'm just going to make a suggestion here a

1091
00:46:06,040 --> 00:46:08,960
Speaker 1: credit card with a bigger welcome bonus. And so the

1092
00:46:09,560 --> 00:46:13,279
Speaker 1: City Double Cash is a great, fantastic everyday card when

1093
00:46:13,320 --> 00:46:15,840
Speaker 1: you're just doing your normal spending, when you're able to,

1094
00:46:15,920 --> 00:46:17,920
Speaker 1: let's say, meet a sign up bonus in one fell swoop.

1095
00:46:18,080 --> 00:46:19,879
Speaker 1: Now we could be talking about, like in the case

1096
00:46:19,880 --> 00:46:23,080
Speaker 1: of the Southwest card, eighty five thousand miles that you're

1097
00:46:23,120 --> 00:46:25,120
Speaker 1: able to get just by putting the purchase on that.

1098
00:46:25,160 --> 00:46:27,920
Speaker 1: So I would at least kind of consider opting for

1099
00:46:27,960 --> 00:46:30,319
Speaker 1: a different card, but then getting the City Double Cash

1100
00:46:30,360 --> 00:46:32,239
Speaker 1: to go along with it for the future. I don't know,

1101
00:46:32,280 --> 00:46:34,160
Speaker 1: maybe both and is the right solution here.

1102
00:46:34,200 --> 00:46:36,719
Speaker 3: Yeah, that could totally work for Janine. And let's talk

1103
00:46:36,760 --> 00:46:39,000
Speaker 3: about the helock part of your question then, because we

1104
00:46:39,000 --> 00:46:41,960
Speaker 3: actually talked about this on a recent Friday flight. It

1105
00:46:42,000 --> 00:46:44,799
Speaker 3: doesn't make sense for you to use a helock for this.

1106
00:46:45,040 --> 00:46:47,560
Speaker 3: Your friends who do that, they're taking on debt for

1107
00:46:47,719 --> 00:46:52,400
Speaker 3: those home repairs, and yes, this is the intended purpose

1108
00:46:52,480 --> 00:46:55,080
Speaker 3: of a helock, but we'd still rather see folks save

1109
00:46:55,200 --> 00:46:57,879
Speaker 3: up them pay for those repairs in cash, because using

1110
00:46:57,960 --> 00:47:00,239
Speaker 3: home equity to pay for fixes, well, that makes even

1111
00:47:00,320 --> 00:47:02,120
Speaker 3: lessons today, given where interest.

1112
00:47:01,960 --> 00:47:03,719
Speaker 2: Rates are, the environment that we're in.

1113
00:47:04,000 --> 00:47:05,839
Speaker 3: It's not that it never makes sense, but you want

1114
00:47:05,920 --> 00:47:10,120
Speaker 3: to insure into those transactions cautiously. But the ideal is

1115
00:47:10,160 --> 00:47:12,840
Speaker 3: to just hold off making those repairs or any of

1116
00:47:12,880 --> 00:47:15,279
Speaker 3: those updates and to pay for them with cash, with

1117
00:47:15,360 --> 00:47:17,439
Speaker 3: money that you've been soalking away, just like you're doing,

1118
00:47:17,480 --> 00:47:20,080
Speaker 3: even though you can deduct the interest that you make

1119
00:47:20,719 --> 00:47:23,000
Speaker 3: interest payments that you are making on that heelock, because

1120
00:47:23,040 --> 00:47:25,840
Speaker 3: you are using it to improve your property. That's great,

1121
00:47:26,160 --> 00:47:27,759
Speaker 3: But that's like that would be an instance of the

1122
00:47:27,760 --> 00:47:29,719
Speaker 3: tail wagon the dogs, right. So it's just it's a

1123
00:47:29,800 --> 00:47:31,759
Speaker 3: very very small silver lining. And the fact is the

1124
00:47:31,800 --> 00:47:36,239
Speaker 3: fact the friends who are tapping home equity, unfortunately, they're

1125
00:47:36,239 --> 00:47:37,600
Speaker 3: probably in a position to where.

1126
00:47:37,480 --> 00:47:38,080
Speaker 2: They have to do that.

1127
00:47:38,360 --> 00:47:40,319
Speaker 3: You know, they don't have that cash on hand. It's

1128
00:47:40,320 --> 00:47:42,000
Speaker 3: not that it makes sense, it's just that they're in

1129
00:47:42,000 --> 00:47:43,879
Speaker 3: a position to where that's what they have to do.

1130
00:47:44,000 --> 00:47:45,799
Speaker 1: Yeah, I mean, it'd almost be like if Janine had

1131
00:47:45,800 --> 00:47:48,120
Speaker 1: written and said, hey, here there's a tax credit on

1132
00:47:48,160 --> 00:47:50,719
Speaker 1: getting new windows. My windows are pretty solid thinking about

1133
00:47:50,800 --> 00:47:53,000
Speaker 1: going in this struction anyway, get some new windows, because hey,

1134
00:47:53,040 --> 00:47:54,240
Speaker 1: who doesn't love a tax.

1135
00:47:54,000 --> 00:47:56,680
Speaker 2: Break, love a deal, right, that would also be.

1136
00:47:56,719 --> 00:47:59,480
Speaker 1: Tail wagging the dog. And so don't let those potential

1137
00:47:59,520 --> 00:48:03,239
Speaker 1: tax break push you in a direction that doesn't make

1138
00:48:03,280 --> 00:48:05,960
Speaker 1: sense because you're still spending money. And the same is

1139
00:48:05,960 --> 00:48:08,680
Speaker 1: true with like, let's say helock. It's like, oh, well,

1140
00:48:08,680 --> 00:48:10,200
Speaker 1: I have access to this money. I've got the home

1141
00:48:10,239 --> 00:48:12,480
Speaker 1: equity built up, so maybe I should just tap it

1142
00:48:12,520 --> 00:48:14,240
Speaker 1: in order to do stuff that I would have otherwise

1143
00:48:14,280 --> 00:48:16,959
Speaker 1: waited to do. And the truth is, the better financial move,

1144
00:48:17,040 --> 00:48:19,239
Speaker 1: the one that's going to leave you with more financial security,

1145
00:48:19,760 --> 00:48:22,319
Speaker 1: is to instead save up the cash and pay for

1146
00:48:22,400 --> 00:48:25,120
Speaker 1: it instead of using a helock, even though it's something

1147
00:48:25,160 --> 00:48:27,560
Speaker 1: you can do, Jenny, we hope that that helps you out.

1148
00:48:27,760 --> 00:48:29,719
Speaker 1: Best of luck to you with that window replacement. You

1149
00:48:29,760 --> 00:48:32,760
Speaker 1: hope you're able to max out the benefits and optimize

1150
00:48:32,800 --> 00:48:35,200
Speaker 1: this nicely. All right, Matt, let's get back to the

1151
00:48:35,200 --> 00:48:37,200
Speaker 1: beer that we had on this episode. This one is

1152
00:48:37,239 --> 00:48:41,120
Speaker 1: called Upstream. It's a hazy ipa it's a collab by

1153
00:48:41,320 --> 00:48:44,600
Speaker 1: two awesome breweries and actually on the license plate on

1154
00:48:44,640 --> 00:48:48,560
Speaker 1: the front of the vehicle on this can says best friends.

1155
00:48:48,640 --> 00:48:50,120
Speaker 1: So is that why you picked it out?

1156
00:48:50,440 --> 00:48:52,799
Speaker 3: Nope, you literally didn't see that when you picked up

1157
00:48:52,840 --> 00:48:54,480
Speaker 3: the spear, because this isn't one that was sent into

1158
00:48:54,520 --> 00:48:56,600
Speaker 3: us by a listener. You picked this one up and

1159
00:48:56,680 --> 00:48:58,880
Speaker 3: when we were listening to one of the listener questions,

1160
00:48:58,960 --> 00:49:00,760
Speaker 3: you held up the cannon point out about it. Yeah,

1161
00:49:01,200 --> 00:49:03,360
Speaker 3: I just noticed it. I was like, oh, which is

1162
00:49:03,360 --> 00:49:05,560
Speaker 3: totally cool, but yeah, I dug it. What'd you think

1163
00:49:05,640 --> 00:49:06,880
Speaker 3: I dug it too. I thought it was kind of

1164
00:49:06,920 --> 00:49:08,960
Speaker 3: grassy and earthy for an ipa. It was a little different,

1165
00:49:09,000 --> 00:49:12,840
Speaker 3: a little a little out of the normal hazy ipa sphere.

1166
00:49:12,880 --> 00:49:15,040
Speaker 3: It had a different, yeah, different flavor profile before I

1167
00:49:15,080 --> 00:49:17,040
Speaker 3: even tasted it, Like on the nose, what I smelled

1168
00:49:17,160 --> 00:49:20,320
Speaker 3: was grapefruit like. It smelled like like someone had sliced

1169
00:49:20,360 --> 00:49:22,600
Speaker 3: a fresh grapefruit and they're holding it under my nose.

1170
00:49:23,400 --> 00:49:26,399
Speaker 3: And the flavor once I sipped it, I completely backed

1171
00:49:26,400 --> 00:49:26,719
Speaker 3: that up.

1172
00:49:26,719 --> 00:49:28,440
Speaker 2: In my opinion. It tasted it almost had like a

1173
00:49:28,480 --> 00:49:32,520
Speaker 2: grapey muscadine like flavor going on.

1174
00:49:32,520 --> 00:49:35,000
Speaker 3: I don't know it was, but simultaneously, it wasn't overly

1175
00:49:35,120 --> 00:49:38,280
Speaker 3: sweet and kind of I don't know, musky or anything

1176
00:49:38,320 --> 00:49:38,480
Speaker 3: like that.

1177
00:49:38,520 --> 00:49:40,600
Speaker 2: It was still super fresh. Was it last week?

1178
00:49:40,840 --> 00:49:43,400
Speaker 3: Was that beer that you liked in our interview with

1179
00:49:43,600 --> 00:49:44,560
Speaker 3: thrown by Prestin?

1180
00:49:44,920 --> 00:49:46,160
Speaker 2: Yeah, the Pure Project.

1181
00:49:46,239 --> 00:49:47,640
Speaker 3: I felt like that one to me. I don't know

1182
00:49:47,600 --> 00:49:49,600
Speaker 3: that it tasted old and kind of flat. This one

1183
00:49:49,640 --> 00:49:51,359
Speaker 3: was very prickly and.

1184
00:49:51,360 --> 00:49:54,040
Speaker 2: Alive and I could feel it all my tongue. Yeah. Yeah, yeah,

1185
00:49:54,040 --> 00:49:55,879
Speaker 2: I liked this one too. Maybe I had a cold

1186
00:49:55,920 --> 00:49:56,640
Speaker 2: last week. I don't know.

1187
00:49:56,680 --> 00:49:58,520
Speaker 1: Maybe I like that one better actually last week, But

1188
00:49:58,560 --> 00:50:00,480
Speaker 1: I liked this one too, so this is quite yeah,

1189
00:50:00,560 --> 00:50:02,839
Speaker 1: good one. Always fun to have stuff like pick stuff

1190
00:50:02,880 --> 00:50:04,480
Speaker 1: up when I'm out on the West Coast because it's

1191
00:50:04,520 --> 00:50:06,560
Speaker 1: beer that we don't normally normally have access to. It's

1192
00:50:06,560 --> 00:50:08,640
Speaker 1: like when I just went to Washington, DC and I

1193
00:50:08,680 --> 00:50:10,400
Speaker 1: was able to get some beers from some breweries that

1194
00:50:10,400 --> 00:50:11,920
Speaker 1: are harder to come by down here, and it's like

1195
00:50:12,080 --> 00:50:13,319
Speaker 1: there are a diamond dozen up there.

1196
00:50:13,960 --> 00:50:16,600
Speaker 3: But you also see some of our local Atlanta breweries

1197
00:50:16,680 --> 00:50:18,440
Speaker 3: on the tap list as well, which is super cool,

1198
00:50:18,480 --> 00:50:20,799
Speaker 3: especially when it's like the small ones who don't get

1199
00:50:20,800 --> 00:50:21,399
Speaker 3: around very much.

1200
00:50:21,440 --> 00:50:24,480
Speaker 2: I'm always like, oh, you got the insider knowledge. Yeah yeah,

1201
00:50:24,520 --> 00:50:25,360
Speaker 2: but they're still crushing it.

1202
00:50:25,400 --> 00:50:26,840
Speaker 1: That's right, all right, that's going to do it for

1203
00:50:27,000 --> 00:50:29,640
Speaker 1: this episode. For links to some of the stuff we mentioned,

1204
00:50:29,800 --> 00:50:31,839
Speaker 1: you can find those up on our website at how

1205
00:50:31,880 --> 00:50:32,840
Speaker 1: toomoney dot com.

1206
00:50:32,960 --> 00:50:35,239
Speaker 3: That's right, and leave us a review please if you

1207
00:50:35,280 --> 00:50:37,959
Speaker 3: have not yet already. It's a great way to let

1208
00:50:38,080 --> 00:50:40,800
Speaker 3: other folks know that how to Money brings the value

1209
00:50:40,840 --> 00:50:43,480
Speaker 3: that it's helping you in your own personal finance journey.

1210
00:50:43,520 --> 00:50:46,000
Speaker 3: You can do that at Apple Podcasts or wherever it.

1211
00:50:46,000 --> 00:50:47,600
Speaker 2: Is that you listen. But buddy, that's going to be

1212
00:50:47,600 --> 00:50:49,120
Speaker 2: it for this episode. So until next time

1213
00:50:49,280 --> 00:51:02,680
Speaker 3: Best Friends Out, Best Friends Out.