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Speaker 1: Welcome to Hat of Money. I'm Joel, I'm Matt. Today

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Speaker 1: we're answering your listener questions. We're keeping the inflections elevated

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Speaker 1: slightly for you, our listener put the emphasis on the

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Speaker 1: different syllable Matt emphasis. Listener questions. Who knows what we're

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Speaker 1: going to get to during today's episode? Well, I know

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Speaker 1: because I picked these questions ahead of time. That's true.

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Speaker 1: I was gonna say. It's like, it's like a the

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Speaker 1: listeners don't know, it's like a box of chocolates. Yeah,

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Speaker 1: except that's not even true, because all boxes of chocolate

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Speaker 1: have the little roadmap on the back of the lid.

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Speaker 1: That's true. Yeah, so you know what you're getting. What

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Speaker 1: was all mister Gump saying? Would you ever blindfold yourself

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Speaker 1: though and pick? Because I don't know. I couldn't do that.

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Speaker 1: There were a lot of like wild cards in there

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Speaker 1: that I did not want to, you know, like the

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Speaker 1: ones loaded with chair. Yeah. I can'try. I can't handle

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Speaker 1: any of that stuff. I kind of like a chocolate purist,

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Speaker 1: so I'm gonna chcolate. I just want chocolate. I do

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Speaker 1: like a nice the fancy bars. They even sell them

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Speaker 1: at Aldy now the nicer bars are of dark chocolate

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Speaker 1: at like eighty five percent coco. Those are some good ones.

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Speaker 1: If I'm gonna eat chocolate dark chocolates where it's at,

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Speaker 1: maybe maybe a little sea salt tossed in there. Maybe

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Speaker 1: some almonds if I'm feeling crazy, Yeah, some nuts and potastios,

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Speaker 1: perhaps like the roadmap that you get on a box

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Speaker 1: of chocolates. I'm gonna give a little preview as to

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Speaker 1: the questions we're gonna get to today. Like a listener

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Speaker 1: is wondering what it is he should do with a

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Speaker 1: recent windfall. He's got some cash on hand, and he's

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Speaker 1: trying to figure out what to do with that money.

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Speaker 1: Another listener is thinking about putting his kid's college savings

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Speaker 1: on the back burner. Is that a smart move? Is

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Speaker 1: that something he should be doing? Another listener is considering

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Speaker 1: converting their primary residence to an investment property. Plus, we'll

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Speaker 1: take a couple listener questions from yeah comments there in

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Speaker 1: the Facebook group, which maybe I should I should go ahead

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Speaker 1: and plug If you haven't checked out the how to

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Speaker 1: money Facebook group on over in the meta sites, be

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Speaker 1: sure and search how to money? Does anyone actually refer

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Speaker 1: to Facebook? As meta other than investors. Okay, so let's

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Speaker 1: call it face. I think it's literally just investors. It's

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Speaker 1: like you don't alphabet something, no, no, no, you google it. Yeah, exactly,

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Speaker 1: there you go. Okay, One quick thing I wanted to

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Speaker 1: mention before we get to all the great listener questions

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Speaker 1: we have on board today is you know, I feel like, actually,

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Speaker 1: when you look at the most popular streaming services, YouTube

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Speaker 1: has surpassed everybody. So oh yeah, even Netflix, Like, people

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Speaker 1: spend more time watching YouTube than they spend watching Netflix,

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Speaker 1: Amazon Prime, any any of the other streaming services. Joel,

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Speaker 1: we don't have attention spans anymore. Right to be patient

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Speaker 1: and to wait for things, You're right. I was really

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Speaker 1: drawing that out to see if you would jump in,

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Speaker 1: jump in. I thought about how the patients to wait

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Speaker 1: you started to bore me. But Joel is about to

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Speaker 1: hit advance two x two X speedmat, which is probably

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Speaker 1: what some people are listening to us on right now.

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Speaker 1: But YouTube has of course, if you are frugal or cheap,

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Speaker 1: you probably don't pay for YouTube Premium, which allows you

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Speaker 1: to skip the ads. Although I think Brian for Aldy

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Speaker 1: we had him on and he mentioned he pays for

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Speaker 1: it because he watches a lot of YouTube, and he's like,

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Speaker 1: it's so worth the twelve or fourteen bucks a month.

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Speaker 1: I remember him saying that to have no ads on

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Speaker 1: specifically with his kids, He's just like, we just don't

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Speaker 1: want to sit there and wait anym. Yeah, it's such

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Speaker 1: a small amount for the which I get amount of

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Speaker 1: life that he's able to reclaim, and part of is

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Speaker 1: the time, but the other part of it. And I

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Speaker 1: do not pay for YouTube premium, so I do watch

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Speaker 1: the ads when I'm watching something on YouTube, but I

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Speaker 1: don't think I watched as much YouTube as Brian for

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Speaker 1: Aldy's kids, so I don't feel the need to pay

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Speaker 1: for it. But it's amazing the things that you get sold,

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Speaker 1: and some of the ads are quite catchy and convincing,

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Speaker 1: Like I went down the rabbit hole for a few

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Speaker 1: minutes of a nail clipper called Edgy. Have you seen

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Speaker 1: this Nope? So apparently it's like far superior to the

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Speaker 1: nail clipper fingerl clipper, yeah, clippers. Yeah, but it's my son.

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Speaker 1: His fingernails grow ridiculously fast. I feel like I'm chopping

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Speaker 1: his fingernails off every like third day. Yeah, that's an exaggeration,

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Speaker 1: but it's close to that. And so I saw this

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Speaker 1: ad for the Edgy and I was like, whoa, Okay,

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Speaker 1: this like stainless steel, and it's it's like slicing instead

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Speaker 1: of just kind of bending and pull the full nail off,

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Speaker 1: like it slices your nails instead of snip. Yeah. So

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Speaker 1: but okay, maybe I should look this up and see

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Speaker 1: if I in fact need this, because I don't like

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Speaker 1: the way that slicing my fingernails sounds. It doesn't sound good,

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Speaker 1: but then it is very convincing in the ad. I

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Speaker 1: did not end up buying one, but it's one of

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Speaker 1: those It just reminded me that sometimes, like frugal or cheap,

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Speaker 1: are we paying for to not watch the ads or

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Speaker 1: are we actually like paying, you know, not paying any

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Speaker 1: money to not watch ads. We're watching the ads, then

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Speaker 1: we get sucked into buying stuff. Again. I did not

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Speaker 1: buy one, but I considered it. I was like, wait

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Speaker 1: a second, have I've been cutting my nails wrong all

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Speaker 1: these years and sometimes they're the wrong method my entire life.

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Speaker 1: It's like they're putting forward a problem that you didn't

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Speaker 1: notice in the first place. I'm like, Honestly, I've never

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Speaker 1: had a problem cutting my nails with the ninety nine

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Speaker 1: cent ones from the drug store. But this is also

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Speaker 1: the model that our media landscape, that our world operates on, right, Like,

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Speaker 1: like YouTube ads aren't really all that different than what

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Speaker 1: we used to see on TV as kids when we

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Speaker 1: were growing up, except for the fact that they're more targeted.

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Speaker 1: So the question is why so here, Yeah, why were

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Speaker 1: you dished up? How did they know that those nail clippers? Specifically,

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Speaker 1: have you been spending more on beauty supplies over in

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Speaker 1: your household? Not that I know of, Yeah, maybe you are,

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Speaker 1: Actually we are. Actually I was just telling you this morning.

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Speaker 1: How uh. Over the weekend, I went shopping with one

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Speaker 1: of my oldest daughter, Yeah, and we went to Sephora.

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Speaker 1: So I'm trying to be an engaged dad who understands

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Speaker 1: what his preteen daughter is going through. And it was

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Speaker 1: kind of like a little special outing between the two

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Speaker 1: of us. And so speaking of ads, it's also kind

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Speaker 1: of fascinating to think through the different images that certainly

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Speaker 1: a young woman, you know, who's growing up, that she

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Speaker 1: is seeing there in the store and trying to like

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Speaker 1: and I'm personally trying to like, interpret, Okay, what is

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Speaker 1: she what is she thinking when she sees that? Or Oh,

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Speaker 1: there's this entire aisle dedicated to this one thing that

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Speaker 1: she didn't know she should be paying attention to, and

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Speaker 1: how is she responding to that? And what is super

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Speaker 1: fascinating is hearing kind of like an ongoing commentary because

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Speaker 1: like there's a section of like some body spray or something.

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Speaker 1: She's like, oh, this is real popular. I'm like, well,

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Speaker 1: how do you know about that? Likes? Because you know,

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Speaker 1: like little girls in the class right, Yes, exactly, she's

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Speaker 1: like a lot of a lot of the girls at school.

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Speaker 1: I think they use this, and she tried some of

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Speaker 1: them with the body scrubs and stuff, because my daughter,

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Speaker 1: what is it bath and body works? Back in the

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Speaker 1: cucumber melon that was the hot sound was the hot flavor.

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Speaker 1: But it was interesting hearing her sort of work through it.

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Speaker 1: And she's just really level headed. She's a lot like me,

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Speaker 1: and so I was encouraged with her specifically to see

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Speaker 1: how she responded to the different products and the different

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Speaker 1: ads and the different imaging out there. I'm not too

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Speaker 1: worried about her kind of going off the deep end,

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Speaker 1: but all kids are different. And I'm pretty sure we're

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Speaker 1: going to have a kid who's going to be like,

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Speaker 1: I need it all. But I don't know. There's a

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Speaker 1: part of not subscribing to the premium models of streaming

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Speaker 1: where our kids are exposed to some of the different

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Speaker 1: ads and products out there that where they're trying to

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Speaker 1: convince them that, no, you're old clippers, they were inferior

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Speaker 1: Joel Amos almost to like immune and I and Amyne, Yeah,

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Speaker 1: is that the word I'm trying to say. I'm I'm

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Speaker 1: misspoken to thicken their skin a little bit when it

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Speaker 1: comes to them be able to kind of roll with

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Speaker 1: the punches as they're the onslaught of all the different

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Speaker 1: advertisements that they're hit with. Yeah, there's like I guess

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Speaker 1: in some ways you want to protect yourself from too

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Speaker 1: much advertising because the truth is we're all susceptible, at

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Speaker 1: least to a certain point. Obviously, I went down the

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Speaker 1: rabbit hole and I almost purchased because I was changed

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Speaker 1: my life. I think you're like twenty bucks, Like it's

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Speaker 1: expensive nail clippers, right, but would you have those clippers

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Speaker 1: for the rest of your life? Probably because you get

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Speaker 1: the cheap ones on Amazon and they start rusting. You know,

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Speaker 1: you leave them sitting there on the scenk, and so

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Speaker 1: they sitting there. Now you're telling me I really need

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Speaker 1: to get some edgies. I don't know rhymes with leggie,

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Speaker 1: which makes it awesome. The idea of slicing my fingernail

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Speaker 1: still doesn't appeal to me. A right, check it out.

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Speaker 1: Let me know what you think. I'm curious and if

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Speaker 1: anybody out there listening has one experience with the one

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Speaker 1: of the fancy ones, tell me if I'm really missing out,

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Speaker 1: and if it's superior, and if my nails are going

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Speaker 1: to be happier because of it. So the real question

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Speaker 1: is do they still make the clip sound when you

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Speaker 1: cut your fingernails, because that's such a satisfying sound. But

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Speaker 1: I bet it's an even more satisfying sound, or maybe

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Speaker 1: like an assassin. I don't know if they slice your nails.

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Speaker 1: I feel like they probably don't make that sound. It's

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Speaker 1: sort of like a vacuum cleaner when you're vacuuming how

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Speaker 1: much well I'm the one that does a vacuum me

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Speaker 1: in my house. I don't know if you vacuumate your house.

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Speaker 1: I love hearing I thought your robot vacuumed. Now we

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Speaker 1: got rid of Creature. Oh the roomba he broke so

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Speaker 1: so and you're not replacing him. I was looking ahead.

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Speaker 1: I saw the writing on the walls, just like, this

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Speaker 1: isn't gonna work out long term. We could sort of

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Speaker 1: do another round of replacement parts, get him some more edgebrushes.

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Speaker 1: The edgebrushes kind of broke and would wear down, and

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Speaker 1: he's kind of going s nile in his later years,

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Speaker 1: and so I'm like, why are we spending so much money?

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Speaker 1: And those things are kind of expensive to realize robots

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Speaker 1: got dementia like that. That's what we're joking because we

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Speaker 1: need him Creature after the House Elf from Harry Potter.

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Speaker 1: All the big old HP nerds out there are like

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Speaker 1: fist pumping, But that's what the ongoing joke was, like,

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Speaker 1: Oh Creature. But I'm thinking, why am I'm not going

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Speaker 1: to drop another several hundred dollars on a roomba when

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Speaker 1: I can just get the chairs off the ground and

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Speaker 1: do a quick sweep of the main floor on the

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Speaker 1: hardwoods boom. That's all we're doing for the most part, anyway,

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Speaker 1: got them anyway, vacuuming up dirt when you hit a

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Speaker 1: good cluster of some dirt that got tracked in so

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Speaker 1: sad it's the sound of it sucking up. In a

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Speaker 1: similar way, I'm saying that cutting your fingernails can be

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Speaker 1: a very satisfying sound like ASMR if you're the one

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Speaker 1: doing it, if you're the one snipping your own nails.

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Speaker 1: All right, let's get to listener questions, and we'll mention

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Speaker 1: the beer. The beer to quietly just tap on his microphone.

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Speaker 1: It's called Cordial for all the folks out there. It's

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Speaker 1: a sayson by the good people of Burial Brewing. We'll

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Speaker 1: give our thoughts on this one later. But if you

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Speaker 1: have a money question, we'd love to tackle it on

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Speaker 1: the show. Go to have money dot com slash ask

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Speaker 1: for the simple instructions. But hey, if you got a

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Speaker 1: money question, whether it's more practical in nature, whether it's

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Speaker 1: more philosophical in nature, we'd love to hear whatever money

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Speaker 1: can undrum you've got coming up. Your fellow listeners would

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Speaker 1: love to hear it too, So please do record your

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Speaker 1: voice memo, send it our way. Hopefully we can take

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Speaker 1: it next week on the pod. But Matt, let's get

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Speaker 1: to listener questions. Got some good ones on the show today.

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Speaker 1: Let's start out with a question. This one comes from

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Speaker 1: a listener who is trying to decide what to do

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Speaker 1: with this old house as he's buying a new one.

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Speaker 2: Hey, Joel Matt, this is Jacob from Wisconsin. Thank you

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Speaker 2: for the podcast and all the help and advice you

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Speaker 2: give individuals. My current question is whether my wife and

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Speaker 2: I should rent our current house or sell. I've recently

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Speaker 2: got a new position and it's going to be about

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Speaker 2: an hour away from where we currently are, so manageable

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Speaker 2: driving distance. We could sell the house for about fifty thousand,

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Speaker 2: which is what we originally were going to do, and

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Speaker 2: put that towards a new house. We recently discover that

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Speaker 2: we can get an alone based on my credentials without

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Speaker 2: P ANDMI, regardless of how much we finance. We have

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Speaker 2: about thirty thousand in our bank account without touching our

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Speaker 2: emergency funds to kind of put down if we were

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Speaker 2: not to sell our house, if we were to rent it,

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Speaker 2: So what we're currently looking as, we could rent it

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Speaker 2: for anywhere from eighteen hundred to two month. Our current

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Speaker 2: mortgage is sitting on just over one thousand dollars, So

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Speaker 2: the question is should we sell it. Would it be

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Speaker 2: a good idea to sell it and get a fifty thousands,

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Speaker 2: put it towards the house and mess with our accounts

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Speaker 2: or rent it and kind of go from there. Any

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Speaker 2: thoughts on that would be greatly appreciated.

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Speaker 1: Thank you, gentlemen. Peers. All right, Well, first of all,

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Speaker 1: I'll say congrats to Jacob Jill. He didn't call it

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Speaker 1: a promotion, but I didn't notice. We were talking. We

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Speaker 1: talk about inflection here on the podcast. When he said

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Speaker 1: new position, I feel like he said it with a

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Speaker 1: little bit of pep in his voice, right. He was

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Speaker 1: just like, I got a new position. I don't mean

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Speaker 1: to brag. Got a new position. Maybe becomes with the

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Speaker 1: pay raise perhaps, but Jacob, that means you're probably doing

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Speaker 1: a great job at work. So congrats to you. That's

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Speaker 1: much and it's amazing how much like my older sister

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Speaker 1: just got a promotion at work and just I'm so

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Speaker 1: pumped for her because like these, these money goals become

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Speaker 1: so much easier to reach as your income grows, Like

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Speaker 1: we talked with I talked with Nick Majulia, and he

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Speaker 1: was talking about how, especially at the front end of

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Speaker 1: the wealth ladder, that those pay increases they matter so much. Yeah,

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Speaker 1: it's like, Man, a twenty thousand dollars pay bump, which

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Speaker 1: is a lot, can just allow you to do so

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Speaker 1: much that you weren't able to do previously. So it's

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Speaker 1: like he's, yeah, just hitting the easy button. It's like,

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Speaker 1: all of a sudden, all these other goals are completely attainable.

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Speaker 1: The trick is to keep yourself from moving the goalpost.

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Speaker 1: That's when it remains just as difficult. If you ramp

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Speaker 1: your spending up commensurately, then it ain't gonna help much,

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Speaker 1: and in fact that it'll make things worse. But if

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Speaker 1: you keep everything else the same, let's talk about this

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Speaker 1: housing question, Matt, I love that Jacob can avoid PMI,

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Speaker 1: but I also wanted to know this that you know,

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Speaker 1: some loans don't require twenty percent down and they might

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Speaker 1: not charge PMI. Technically, there might be other inflated costs

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Speaker 1: to consider. For instance, Jacob might be getting hit with

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Speaker 1: a slightly higher interest rate, Like the lender might say, yeah,

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Speaker 1: don't worry, Jacob, we don't charge PMI, But then the

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Speaker 1: interest rate is worse than he'd be able to get

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Speaker 1: elsewhere with a lender that does charge PMI, and that's

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Speaker 1: private mortgage insurance for anybody who doesn't know who's listening,

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Speaker 1: which if you don't put down a sufficient down payment,

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Speaker 1: this is a way the lender protects himself. And so

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Speaker 1: it's important to get multiple quotes Jacob, to compare apples

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Speaker 1: to apples versus just kind of thanking your lucky stars

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Speaker 1: that you can avoid PMI because PMI and a lower

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Speaker 1: rate might be even better than what you're getting quoted

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Speaker 1: right now. So just make sure you're considering multiple loan options.

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Speaker 1: This is a placement that people cast themselves thousands, if

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Speaker 1: not tens of thousands of dollars over the life at

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Speaker 1: the loan by not shopping around on the front end.

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Speaker 1: And the thing about why PMI might be preferable with

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Speaker 1: the lower rate is because you can drop PMI by

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Speaker 1: paying off more of the balance of your loan, but

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Speaker 1: you can't really change the rate unless you refinance, and

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Speaker 1: you might not be able to refinance at a lower rate,

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Speaker 1: so that higher rate sticks with you for the life

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Speaker 1: at a loan. That's right. Yeah, I think optional at

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Speaker 1: eighty percent, mandatory I believe at seventy eight percent. But

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Speaker 1: do get quotes from multiple lenders out there. Sounds like Jacobs,

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Speaker 1: he's up there in Wisconsin. Check with a local credit union,

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Speaker 1: maybe a local bank. Ask around, see if somebody's got

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Speaker 1: a mortgage broker that they would recommend. And if you

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Speaker 1: can hold on to your your current home as a

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Speaker 1: rental and still get solid terms on that new house.

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Speaker 1: I think that could be a great idea. But there

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Speaker 1: are downsides to hanging onto that house, for instance, becoming

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Speaker 1: a default landlord. I guess if you aren't interested in

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Speaker 1: becoming a landlord, then it's default. Otherwise you are proactively

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Speaker 1: choosing it. It sounds like he's at least a little

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Speaker 1: interested a question, but I get he sounds neutral. But

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Speaker 1: some people are like, no, no, no, no, I'm I'm gonna

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Speaker 1: ho for this. I'm ready, which is great to take

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Speaker 1: on that part time job. And other people are like, well,

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Speaker 1: that's the thing. It worries me. That's the thing, the

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Speaker 1: part time job part of it. Like, there is a

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Speaker 1: big difference between just passive investing in the market and

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Speaker 1: owning and managing a rental property. Managing is key, I think,

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Speaker 1: for at least for the first years in terms of

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Speaker 1: profit and just learning the ropes. But if you get

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Speaker 1: excited about the upper ortunity if you are willing to

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Speaker 1: put in the work. I think this rental property could

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Speaker 1: help you to reach financial independence at a faster pace.

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Speaker 1: And certainly that's because of the fact that you are

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Speaker 1: leveraging this debt. It just requires more attention and whether

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Speaker 1: or not you know you've got this new job, whether

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Speaker 1: or not you've got that time on your hand on

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Speaker 1: your hands to be able to pull that off. That

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Speaker 1: kind of comes down to lifestyle, whether or not that's

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Speaker 1: something that you want to continue doing it. And maybe

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Speaker 1: you do because you've got friends there still at the

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Speaker 1: you know, like in your old neighborhood, so you're like, well,

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Speaker 1: I'm going to be going back anyway. In that case,

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Speaker 1: I could see that being maybe a little bit more

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Speaker 1: of a no brainer. I did think when Jacob said

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Speaker 1: manageable driving distance, like he's willing to go back when

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Speaker 1: it's necessary. And the truth is, the better you get

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Speaker 1: at managing a rental property and finding good tenants, the

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Speaker 1: less you have to be there. It doesn't mean you

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Speaker 1: never have to be there, but you might find that

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Speaker 1: you only have to be there once a quarter or

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Speaker 1: something like that. And if you're willing to commit to

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Speaker 1: that and maybe a little more frequently in the first

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Speaker 1: years you're kind of getting established. But if it's a

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Speaker 1: reasonable distance for you to drive, I think it puts

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Speaker 1: a check mark in the corner of like, yeah, keep

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Speaker 1: it or it just depends on what reasonable is. Because

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Speaker 1: he's didn't he say like about an hour. Yeah, it's

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Speaker 1: like maybe an hour for him that's reasonable. Maybe for

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Speaker 1: him that's reasonable. But like round Trape, you're looking at

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Speaker 1: two hours. Not to mention the time that you're gonna

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Speaker 1: be there. Let's say you're showing the property. Obviously that's

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Speaker 1: a couple hours or so. Let's say you're just meeting

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Speaker 1: a contractor there. I mean you're looking at gosh, you

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Speaker 1: know throughout like their boom, there goes your at least

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Speaker 1: like half your work day if it's during the week,

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Speaker 1: if it's on the weekend, like, there goes your Saturday morning. Sure, right,

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Speaker 1: And so even though it seems like it's not that

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Speaker 1: far away, I guess account for the total amount of

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Speaker 1: time that you might have to carve out in order

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Speaker 1: to manage that yourself. But that time you spend could

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Speaker 1: kind of, like you alluded to Matt payoff in additional

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Speaker 1: returns over time, better returns than you might get in

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Speaker 1: the market. I think, you know, would be wise to

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Speaker 1: see how good the numbers look for your current property

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Speaker 1: as a rental Jacob. You mentioned a little bit, but

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Speaker 1: you got to know how much wiggle room there is

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Speaker 1: between your mortgage and the monthly rental amount. We have

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Speaker 1: talked in the past, Matt about the one percent rule,

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Speaker 1: which is something that we used to strive for, which

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Speaker 1: is essentially that the monthly rental amount equates to one

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Speaker 1: percent of the overall purchase price. But that's hard to

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Speaker 1: come by these days.

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Speaker 3: Right.

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Speaker 1: It's still possible, I guess in some parts of the country,

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Speaker 1: but I would say especially in major cities, Yeah, not

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Speaker 1: going to happen. And in many parts of the country,

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Speaker 1: a new landlord is likely going to lose money month

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Speaker 1: after month, and their only real goal of profit can

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Speaker 1: be price appreciation. I don't think that's going to be

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Speaker 1: the case in Wisconsin where Jacob is. If that is

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Speaker 1: the case, though, you know, it can work out, but

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Speaker 1: it's riskier and it's not worth the hassle. I don't

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Speaker 1: think for the most part of being a landlord. But

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Speaker 1: Jacob's not going to be losing money. Sounds like he's

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Speaker 1: going to be able to clear something like eight hundred

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Speaker 1: plus dollars making money hanover fifty a month like expenses. Yeah,

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Speaker 1: just budget for repairs, Jacob. And you know better than

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Speaker 1: anybody else what kind of condition the home is in.

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Speaker 1: But you have to budget for that stuff because it

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Speaker 1: doesn't mean like, hey, if I do this eight hundred

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Speaker 1: bucks a month in profit on a recurring basis is mine.

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Speaker 1: Your home is still actually going to despite that profit margin,

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Speaker 1: lose money in some years because I have properties that

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Speaker 1: have maybe like probably I would say a similar discrepancy

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Speaker 1: between the mortgage amount and the rent. But when you

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Speaker 1: have to replace a roof for an HVAC system, water heater,

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Speaker 1: new bathroom, new cabinets, new bathroom, all that kind of stuff,

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Speaker 1: you have to factor that stuff in. It will eat

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Speaker 1: into your profits. You're hoping over time still that it

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Speaker 1: makes sense. But this is a long term investment. It's you.

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Speaker 1: It's not like you're trying to make a quick buck here.

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Speaker 1: That is true. But obviously he's just got the advantage

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Speaker 1: due of being able to roll that primary into an investment, right,

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Speaker 1: meaning that he's got better financing terms to be You're

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Speaker 1: going to get a better mortgage when it's owner occupied.

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Speaker 1: So being able to hold onto that first house, Joel,

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Speaker 1: that's how you got into it. That's actually not how

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Speaker 1: I purchased my first rental property because we're like, actually

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Speaker 1: we like this house, we're not gonna move, so we

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Speaker 1: ended up buying another place. But then you did eventually

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Speaker 1: turn that house also into a rental, which yeah, which

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Speaker 1: I'm actually in them. So that was you did it

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Speaker 1: the first time, but you did do it. I did

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Speaker 1: do it the second time. That is true. And man,

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Speaker 1: I'll tell you what, it's been awesome to maintain that

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Speaker 1: incredibly low mortgage rate. And there's something property about holding

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Speaker 1: on to that house if you love it, like I

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Speaker 1: really liked that feels like you got history. Yet every

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Speaker 1: time you step back in there, like shed a little tear,

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Speaker 1: there's something there's something nice about it. For sure. I

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Speaker 1: was gonna say this is fresh on my mind though too,

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Speaker 1: because actually that this particular house that I'm thinking of,

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Speaker 1: I've had a render in there for eight years and

426
00:19:18,200 --> 00:19:20,159
Speaker 1: she finally was like, yeah, I'm finally moving out. I

427
00:19:20,160 --> 00:19:21,919
Speaker 1: thought she was going to be a lifer, man, I was.

428
00:19:22,200 --> 00:19:23,879
Speaker 1: I thought maybe she just didn't want to own her

429
00:19:23,880 --> 00:19:26,359
Speaker 1: own place, but I think she was just working on

430
00:19:26,560 --> 00:19:29,200
Speaker 1: her career. She you know, was ended up being a great,

431
00:19:29,320 --> 00:19:32,840
Speaker 1: great property for her. But what that means, though, is

432
00:19:32,880 --> 00:19:35,160
Speaker 1: that there's some deferred maintenance that needs to take place.

433
00:19:35,240 --> 00:19:36,840
Speaker 1: In said this sort of like you're saying, this is

434
00:19:36,840 --> 00:19:38,320
Speaker 1: one of those years I think I'm gonna end up

435
00:19:38,520 --> 00:19:41,240
Speaker 1: spending a chunk of money there on that property. Not

436
00:19:41,280 --> 00:19:44,000
Speaker 1: to mention, we had a waterline main bust there earlier

437
00:19:44,000 --> 00:19:46,159
Speaker 1: in the year, so I'm already sort of underwater a

438
00:19:46,160 --> 00:19:49,760
Speaker 1: little bit with with that one. Yeah, But what I

439
00:19:49,760 --> 00:19:51,119
Speaker 1: was gonna say, so kind of going back to the

440
00:19:51,480 --> 00:19:54,560
Speaker 1: part time job aspect of this, Jacob, what's key? So

441
00:19:54,640 --> 00:19:58,360
Speaker 1: this is a great just general tactical tip, but make

442
00:19:58,400 --> 00:20:00,680
Speaker 1: sure to put a lock box there out the property

443
00:20:00,720 --> 00:20:03,600
Speaker 1: because that can be something that you can so easily save,

444
00:20:03,800 --> 00:20:06,680
Speaker 1: save yourself at least two hours drive him back and forth,

445
00:20:06,720 --> 00:20:08,800
Speaker 1: because hey, if you need to get some work done, Hey,

446
00:20:09,000 --> 00:20:12,679
Speaker 1: in my case, I literally was texting this morning with

447
00:20:12,800 --> 00:20:15,520
Speaker 1: a painter. I didn't need to meet him down there,

448
00:20:15,840 --> 00:20:17,359
Speaker 1: just gave him the code, did the lock box, He

449
00:20:17,480 --> 00:20:22,680
Speaker 1: looked through it. So prioritize contractors who are good at communicating. Obviously,

450
00:20:22,680 --> 00:20:24,760
Speaker 1: contractors that you trust to when it comes to doing

451
00:20:24,760 --> 00:20:26,879
Speaker 1: some of that work, because that with this being an

452
00:20:26,880 --> 00:20:29,720
Speaker 1: hour away, that can save you a ton of time

453
00:20:29,760 --> 00:20:31,320
Speaker 1: and you can kind of have your cake of self

454
00:20:31,359 --> 00:20:34,640
Speaker 1: managing and eat it too. I still remember the first

455
00:20:34,640 --> 00:20:36,639
Speaker 1: time I didn't move away. I was just out of

456
00:20:36,680 --> 00:20:39,440
Speaker 1: town and something happened at one of my rental properties,

457
00:20:39,880 --> 00:20:42,200
Speaker 1: and that I normally would have because it was right

458
00:20:42,240 --> 00:20:44,719
Speaker 1: around the corner. I normally would have just just pop up,

459
00:20:44,720 --> 00:20:47,359
Speaker 1: pop on over, meet the plumber, right like. But it

460
00:20:47,400 --> 00:20:49,360
Speaker 1: was the first time I wasn't there and couldn't do it,

461
00:20:49,480 --> 00:20:51,440
Speaker 1: and it opened my eyes to the fact that if

462
00:20:51,440 --> 00:20:53,720
Speaker 1: I created the right systems, I wouldn't have to drive

463
00:20:53,760 --> 00:20:56,040
Speaker 1: over there, even though it was a mile away. And

464
00:20:56,040 --> 00:20:57,640
Speaker 1: now you and I we live a little bit further

465
00:20:57,680 --> 00:20:59,680
Speaker 1: from our rental property, so we got to be able

466
00:20:59,680 --> 00:21:01,040
Speaker 1: to do that. I have to have those systems, and

467
00:21:01,080 --> 00:21:03,199
Speaker 1: so Jacob's gonna have to learn those from the get go,

468
00:21:03,240 --> 00:21:06,919
Speaker 1: and having a lock box that his trusted contractors can

469
00:21:07,000 --> 00:21:09,159
Speaker 1: access will make a big deal. Yeah, I think that's

470
00:21:09,200 --> 00:21:11,359
Speaker 1: a good tip. MAP. I also want to mention to

471
00:21:11,440 --> 00:21:13,600
Speaker 1: Jacob as he's kind of trying to figure out what

472
00:21:13,640 --> 00:21:15,720
Speaker 1: he wants to do here, and I think he could

473
00:21:15,760 --> 00:21:21,800
Speaker 1: go really either way. But don't forget about taxes, because

474
00:21:21,920 --> 00:21:23,600
Speaker 1: you know, before you commit one way or the other,

475
00:21:23,640 --> 00:21:25,840
Speaker 1: it's important to at least recognize and know what the

476
00:21:25,880 --> 00:21:29,040
Speaker 1: two in five rule is, which essentially means that if

477
00:21:29,080 --> 00:21:31,520
Speaker 1: you've lived in your house as your primary residence for

478
00:21:31,560 --> 00:21:34,520
Speaker 1: two of the past five years, you can avoid capital

479
00:21:34,560 --> 00:21:37,320
Speaker 1: gains tax on the profit of that home when you sell.

480
00:21:37,800 --> 00:21:40,399
Speaker 1: So let's say you try your hand at renting this

481
00:21:40,440 --> 00:21:42,159
Speaker 1: place out. You're like, I'm going to give it a go,

482
00:21:43,040 --> 00:21:45,240
Speaker 1: we'll list it, I'm going to manage it. You're a

483
00:21:45,280 --> 00:21:47,800
Speaker 1: year in and you're like, I hate this, Like the

484
00:21:47,880 --> 00:21:50,120
Speaker 1: tenants have been bothering me to no end. I've had

485
00:21:50,119 --> 00:21:52,520
Speaker 1: more repairs through on the unit than I thought. I

486
00:21:52,560 --> 00:21:54,320
Speaker 1: got to put this on the market and sell it. Well,

487
00:21:54,320 --> 00:21:56,920
Speaker 1: the great thing is you can still avoid paying Uncle

488
00:21:56,920 --> 00:21:59,040
Speaker 1: Sam fifteen percent of the gain that your home has

489
00:21:59,080 --> 00:22:01,920
Speaker 1: experienced since initial purchase because you lived in it recently.

490
00:22:02,160 --> 00:22:04,320
Speaker 1: But if you go beyond that mark, and let's say

491
00:22:04,320 --> 00:22:06,280
Speaker 1: you've run it out for four years and then you

492
00:22:06,320 --> 00:22:09,159
Speaker 1: sell the property, well, you're going to owe the capital

493
00:22:09,200 --> 00:22:11,840
Speaker 1: gains tax on all the games you've experienced since you

494
00:22:11,920 --> 00:22:14,360
Speaker 1: bought it. So that's basically like having your computer die

495
00:22:14,520 --> 00:22:17,760
Speaker 1: one day out of warranty. That's right, that's right. Oh,

496
00:22:17,760 --> 00:22:20,199
Speaker 1: we should have done it yesterday. Yes, that's exactly right.

497
00:22:20,200 --> 00:22:21,960
Speaker 1: Except for one you can control. On the other you can't.

498
00:22:22,000 --> 00:22:24,680
Speaker 1: I guess right, that's true, so make sure you know that.

499
00:22:25,119 --> 00:22:27,040
Speaker 1: But yeah, other than that, I think if you if

500
00:22:27,119 --> 00:22:29,600
Speaker 1: you paid a reasonable amount for your home, you got

501
00:22:29,640 --> 00:22:32,200
Speaker 1: a solid locked in interest rate, you're keen to become

502
00:22:32,320 --> 00:22:35,480
Speaker 1: a landlord, Jacob. I think there's a lot of plus signs,

503
00:22:35,680 --> 00:22:38,080
Speaker 1: especially if you don't mind that drive once or twice

504
00:22:38,080 --> 00:22:40,400
Speaker 1: a quarter to go back there and check on your baby,

505
00:22:40,440 --> 00:22:42,960
Speaker 1: your investment. I think you might be happy to being

506
00:22:42,960 --> 00:22:45,399
Speaker 1: a landlord, and you might see better financial returns from

507
00:22:45,400 --> 00:22:46,520
Speaker 1: it too. Jo, we've got what to get to you.

508
00:22:46,520 --> 00:22:48,560
Speaker 1: We're gonna hear from a listener who is on the

509
00:22:48,600 --> 00:22:51,240
Speaker 1: other side of the world. He has an investing question.

510
00:22:51,280 --> 00:23:01,000
Speaker 1: We'll get to that and more right after this. I'm

511
00:23:01,000 --> 00:23:03,360
Speaker 1: not we're back. Let's get some more listener questions. Let's

512
00:23:03,400 --> 00:23:06,120
Speaker 1: hear from a listener who loves his kids but isn't

513
00:23:06,160 --> 00:23:07,280
Speaker 1: sure he wants to save for them.

514
00:23:07,720 --> 00:23:12,239
Speaker 4: Hey, guys, thanks for taking my call. So my situation is,

515
00:23:12,359 --> 00:23:15,680
Speaker 4: I've got a high school junior and a high school freshman,

516
00:23:16,600 --> 00:23:20,359
Speaker 4: and of course, like many adults parents, we didn't start

517
00:23:20,400 --> 00:23:22,680
Speaker 4: saving as soon as we could in the five twenty nine,

518
00:23:22,760 --> 00:23:26,560
Speaker 4: which I did start recently, But now, because of my

519
00:23:26,760 --> 00:23:30,160
Speaker 4: sense that the market is volatile, I'm not sure if

520
00:23:30,160 --> 00:23:33,000
Speaker 4: that's the best option. So I want to get your

521
00:23:33,040 --> 00:23:35,840
Speaker 4: thoughts on that. But more importantly, I guess what I'm

522
00:23:35,880 --> 00:23:38,320
Speaker 4: wondering is I'm going back and forth between the idea

523
00:23:38,440 --> 00:23:41,720
Speaker 4: of whether or not to start saving as much as

524
00:23:41,760 --> 00:23:44,320
Speaker 4: I can, in other words, stop maybe putting as much

525
00:23:44,320 --> 00:23:48,240
Speaker 4: in my retirement account, which is pretty aggressive in that regard,

526
00:23:48,320 --> 00:23:50,240
Speaker 4: So I think if I pulled back a little bit,

527
00:23:50,240 --> 00:23:54,720
Speaker 4: it wouldn't you know, be a traumatic thing. But thinking

528
00:23:54,760 --> 00:23:55,520
Speaker 4: that maybe.

529
00:23:55,280 --> 00:23:59,520
Speaker 5: What I could do is basically just have her pay

530
00:23:59,560 --> 00:24:03,119
Speaker 5: for it and use that extra money to continue to

531
00:24:03,320 --> 00:24:07,359
Speaker 5: go aggressively in the market, thinking that it's better to

532
00:24:07,440 --> 00:24:10,359
Speaker 5: take out a loan and probably pay it off at

533
00:24:10,400 --> 00:24:14,520
Speaker 5: a lower interest rate than the money I could extra

534
00:24:14,560 --> 00:24:17,520
Speaker 5: money I could make when my retirement account and just

535
00:24:17,520 --> 00:24:18,440
Speaker 5: start pulling that out.

536
00:24:18,480 --> 00:24:21,720
Speaker 4: I'm sixty one, so It's not like I would suffer

537
00:24:21,760 --> 00:24:24,840
Speaker 4: any penalties in a few years if I start pulling

538
00:24:24,880 --> 00:24:28,080
Speaker 4: out other than just the regular taxes. So that's in

539
00:24:28,119 --> 00:24:29,920
Speaker 4: a nutshell, just kind of want to figure out what's

540
00:24:30,000 --> 00:24:32,960
Speaker 4: my best option at this late stage in the game.

541
00:24:33,200 --> 00:24:35,679
Speaker 1: All right, Thanks, all right, Joe. Let's get to Scott

542
00:24:35,720 --> 00:24:38,160
Speaker 1: and one of the things that he said, I think

543
00:24:38,160 --> 00:24:40,119
Speaker 1: he said something like, my sense is that the market

544
00:24:40,200 --> 00:24:43,439
Speaker 1: is volatile right now, and I think it is going

545
00:24:43,520 --> 00:24:44,919
Speaker 1: to be okay for him to pull back on how

546
00:24:44,960 --> 00:24:47,400
Speaker 1: much he's putting into the market. If he's been investing

547
00:24:47,760 --> 00:24:49,800
Speaker 1: a pretty large percentage of his income for a long time.

548
00:24:50,240 --> 00:24:53,200
Speaker 1: I just don't want to see him reducing his contributions

549
00:24:53,280 --> 00:24:55,720
Speaker 1: just because he's worried about a pullback. Because he's reading

550
00:24:55,760 --> 00:24:58,480
Speaker 1: the news, the headlines he's thinking about Like, when you're

551
00:24:58,520 --> 00:25:00,960
Speaker 1: younger and you're just building up that wealth, you probably

552
00:25:01,000 --> 00:25:03,960
Speaker 1: aren't paying too much attention to what's going on. What's

553
00:25:04,000 --> 00:25:06,440
Speaker 1: the news and markets right, like how are Terriff's impacting

554
00:25:06,760 --> 00:25:09,480
Speaker 1: the stock market? But as you get closer to needing

555
00:25:09,520 --> 00:25:11,400
Speaker 1: that money like he is. He said he's got a

556
00:25:11,720 --> 00:25:15,320
Speaker 1: freshman as well as a junior, h you start thinking about, oh,

557
00:25:15,480 --> 00:25:17,360
Speaker 1: how oh, what does that mean for this? What does

558
00:25:17,400 --> 00:25:20,919
Speaker 1: it mean for that? Well, I mentioned terrists specifically. I'm

559
00:25:20,960 --> 00:25:23,520
Speaker 1: thinking aback to all the headline predictions about tariff's and

560
00:25:23,560 --> 00:25:26,280
Speaker 1: the impact of those on the economy. And you know,

561
00:25:26,280 --> 00:25:29,800
Speaker 1: we're still not fans of terriffs in general. I do

562
00:25:29,840 --> 00:25:32,480
Speaker 1: think they will certainly slow down growth. But the twenty

563
00:25:32,480 --> 00:25:36,680
Speaker 1: percent pullback that we experienced back when, back Liberation day, Joel,

564
00:25:36,720 --> 00:25:39,040
Speaker 1: do you remember this seems like it seems like it

565
00:25:39,080 --> 00:25:40,800
Speaker 1: was so long ago. I remember the fun signage that

566
00:25:40,920 --> 00:25:44,360
Speaker 1: was held up Fier President. It was so based on

567
00:25:44,800 --> 00:25:50,280
Speaker 1: trade deficits as but that pullback was I don't know.

568
00:25:50,320 --> 00:25:53,480
Speaker 1: It feels like it bounced back so quickly, and we've

569
00:25:53,560 --> 00:25:57,560
Speaker 1: recently reached record highs. This happens all the time. The volatility,

570
00:25:57,720 --> 00:26:00,000
Speaker 1: Scott that you're experiencing, that is just the price of admission,

571
00:26:00,600 --> 00:26:03,760
Speaker 1: and the higher returns are just the reward that you

572
00:26:03,840 --> 00:26:06,480
Speaker 1: get for dealing with these greater levels of risk. And

573
00:26:06,560 --> 00:26:09,960
Speaker 1: so I'm just here to say, I don't know if

574
00:26:10,160 --> 00:26:12,320
Speaker 1: this time, like everyone always says, this time is different,

575
00:26:12,359 --> 00:26:15,280
Speaker 1: I don't I'm proposing the idea that this time isn't

576
00:26:15,320 --> 00:26:18,240
Speaker 1: really all that different from all the other previous times. Yeah,

577
00:26:18,280 --> 00:26:21,679
Speaker 1: and like, will the stock market bounce back in no

578
00:26:21,760 --> 00:26:23,359
Speaker 1: time flat like it did with COVID and like it

579
00:26:23,400 --> 00:26:24,120
Speaker 1: did with tariffs?

580
00:26:24,720 --> 00:26:24,880
Speaker 3: No?

581
00:26:25,000 --> 00:26:29,800
Speaker 1: Maybe not, Like there will probably be downturns in the

582
00:26:29,800 --> 00:26:32,159
Speaker 1: stock market and in the economy, the last longer than

583
00:26:32,200 --> 00:26:36,000
Speaker 1: what we've experienced recently, but still like just pointing to

584
00:26:36,040 --> 00:26:37,840
Speaker 1: being like, oh, it feels like the market's more volatile

585
00:26:37,880 --> 00:26:40,479
Speaker 1: than normal. I don't think it is. I think maybe

586
00:26:40,560 --> 00:26:42,800
Speaker 1: it's it's easy as an investor who's got your finger

587
00:26:42,840 --> 00:26:44,160
Speaker 1: on the pulse to feel like that, but I don't

588
00:26:44,200 --> 00:26:46,760
Speaker 1: necessarily think that makes it true. Yeah, and I really

589
00:26:46,800 --> 00:26:48,280
Speaker 1: do think it's the older you get to and the

590
00:26:48,320 --> 00:26:51,439
Speaker 1: closer you start eyeing some of your retirement goals or

591
00:26:51,480 --> 00:26:53,560
Speaker 1: in this case, goals for his kid, you start thinking

592
00:26:53,600 --> 00:26:55,879
Speaker 1: about it a little more where you're just like, well, shoot, actually,

593
00:26:55,920 --> 00:26:58,560
Speaker 1: do I actually want to take all the risk that

594
00:26:58,720 --> 00:27:01,200
Speaker 1: is available, all the riskless the table? I used to say, yes,

595
00:27:01,240 --> 00:27:03,480
Speaker 1: give me, gimme, gimme, but now it's just like, oh,

596
00:27:03,600 --> 00:27:06,000
Speaker 1: maybe you know I'm gonna say no to seconds at

597
00:27:06,040 --> 00:27:07,960
Speaker 1: the time. He kind of likes slide back from the

598
00:27:08,000 --> 00:27:10,160
Speaker 1: table a little bit. At some point. That's a smart

599
00:27:10,200 --> 00:27:12,359
Speaker 1: idea to de risk right as you're getting closer than

600
00:27:12,400 --> 00:27:16,040
Speaker 1: needing that money, which brings me to the question at

601
00:27:16,040 --> 00:27:18,880
Speaker 1: hand about saving for your kids. I first just want

602
00:27:18,920 --> 00:27:21,159
Speaker 1: to tell Scott not to beat himself up for not

603
00:27:21,160 --> 00:27:23,960
Speaker 1: starting a five to twenty nine plan sooner. And this,

604
00:27:23,960 --> 00:27:26,480
Speaker 1: this might sound harsh to other listeners, but saving for

605
00:27:26,520 --> 00:27:29,639
Speaker 1: your kids really should be a lower priority than your

606
00:27:29,680 --> 00:27:32,119
Speaker 1: own personal retirement accounts. And no, it's not because you

607
00:27:32,119 --> 00:27:34,119
Speaker 1: don't love your kids, but it's because there are so

608
00:27:34,359 --> 00:27:38,639
Speaker 1: many other ways to pay for a higher education. You know,

609
00:27:38,680 --> 00:27:41,240
Speaker 1: we talked with with Jocelyn Pearson back in episode eight

610
00:27:41,320 --> 00:27:45,840
Speaker 1: sixty about getting scholarships, and that's only one episode. We've

611
00:27:45,840 --> 00:27:48,400
Speaker 1: had multiple episodes, many episodes on paying for college. Ron

612
00:27:48,440 --> 00:27:50,400
Speaker 1: Leber from The New York Times on the show, there

613
00:27:50,440 --> 00:27:53,960
Speaker 1: are so many different ways to reduce the cost of college,

614
00:27:54,000 --> 00:27:56,680
Speaker 1: to find other ways to pay for college that aren't

615
00:27:56,720 --> 00:27:59,480
Speaker 1: just like personal investments in a five to twenty nine plan.

616
00:28:00,080 --> 00:28:03,280
Speaker 1: But when it comes to your retirement, sorry, that stuff

617
00:28:03,280 --> 00:28:06,240
Speaker 1: doesn't exist, and so that is the priority. And it's

618
00:28:06,280 --> 00:28:09,640
Speaker 1: not selfish to suggest that. We just don't suggest making

619
00:28:09,920 --> 00:28:13,040
Speaker 1: meaningful contributions to five twenty nine accounts for your kids

620
00:28:13,119 --> 00:28:15,480
Speaker 1: until you reach money Gear's number seven, which if you

621
00:28:15,480 --> 00:28:17,880
Speaker 1: look at them on our website, that's the last money gear.

622
00:28:18,080 --> 00:28:20,200
Speaker 1: So it's very far along in the order of operations

623
00:28:20,200 --> 00:28:23,760
Speaker 1: if you haven't done basically all the other priorities first, like,

624
00:28:24,480 --> 00:28:27,000
Speaker 1: you shouldn't be doing it. There's just too many other

625
00:28:27,000 --> 00:28:30,080
Speaker 1: financial goals that take precedent. Yeah, let's take a minute

626
00:28:30,080 --> 00:28:31,879
Speaker 1: two to talk about five twenty nine accounts than just

627
00:28:31,920 --> 00:28:35,280
Speaker 1: how much better those plans have gotten. First of all,

628
00:28:35,359 --> 00:28:39,480
Speaker 1: they have become more flexible. You can even in time

629
00:28:39,840 --> 00:28:42,760
Speaker 1: turn some of the contributions into roth Ira dollars for

630
00:28:42,840 --> 00:28:45,760
Speaker 1: them if it's in fact not needed for their schooling.

631
00:28:45,880 --> 00:28:48,360
Speaker 1: So because of that, we like five twenty nine's more

632
00:28:48,560 --> 00:28:51,640
Speaker 1: than we used to and many of them come with

633
00:28:51,680 --> 00:28:55,160
Speaker 1: just incredibly low cost investments. But not every parent cares

634
00:28:55,200 --> 00:28:57,600
Speaker 1: about that. Not every parent wants to say for their

635
00:28:57,640 --> 00:29:00,640
Speaker 1: kids retirement. And to be honest, in your case, Scott,

636
00:29:00,640 --> 00:29:02,240
Speaker 1: you don't want to invest the dollars that you are

637
00:29:02,280 --> 00:29:04,640
Speaker 1: contributing anyway because of how quickly it is that you

638
00:29:04,720 --> 00:29:07,920
Speaker 1: are most likely going to need these dollars for your

639
00:29:08,000 --> 00:29:09,880
Speaker 1: kids higher education. That's a good point you're talking about

640
00:29:09,880 --> 00:29:12,320
Speaker 1: like Scott getting closer to needing the money he's sticking

641
00:29:12,360 --> 00:29:14,560
Speaker 1: in his retirement accounts. I mean, hopefully he's still got

642
00:29:14,600 --> 00:29:17,480
Speaker 1: decades of retirement left. But for his kids, we're talking

643
00:29:17,520 --> 00:29:21,240
Speaker 1: about spending that money actually in the fairly near future.

644
00:29:21,600 --> 00:29:24,280
Speaker 1: You said your kids are in high school, right, junior

645
00:29:24,320 --> 00:29:27,120
Speaker 1: and freshmen, Well, that means that investing that money would

646
00:29:27,120 --> 00:29:29,400
Speaker 1: be too much of a gamble, especially for that junior

647
00:29:29,440 --> 00:29:31,880
Speaker 1: if you're going to need that money in a couple

648
00:29:31,920 --> 00:29:34,720
Speaker 1: of years, or at least some of that money, right, Yeah, freshman,

649
00:29:35,120 --> 00:29:37,520
Speaker 1: maybe you can take some more risks there, but yeah,

650
00:29:37,560 --> 00:29:39,440
Speaker 1: definitely not the junior, right exactly. Yeah, I think with

651
00:29:39,480 --> 00:29:41,600
Speaker 1: the freshman you might be able to do a conservative

652
00:29:41,640 --> 00:29:44,880
Speaker 1: mix of investments because you have more years that you

653
00:29:44,920 --> 00:29:48,360
Speaker 1: can let those investments ride. But needing those funds in

654
00:29:48,360 --> 00:29:51,520
Speaker 1: short order means investing doesn't make much sense, and which

655
00:29:51,560 --> 00:29:54,320
Speaker 1: means the five twenty nine account doesn't make as much

656
00:29:54,320 --> 00:29:57,240
Speaker 1: sense right now. I think the only way I'd prioritize

657
00:29:57,240 --> 00:29:59,560
Speaker 1: it is if you felt like you were really ahead

658
00:29:59,560 --> 00:30:01,120
Speaker 1: of the game as far as your own personal and

659
00:30:01,160 --> 00:30:04,240
Speaker 1: workplace retirement accounts, Like, hey, I've crushed it so well

660
00:30:04,720 --> 00:30:06,800
Speaker 1: that even though my kids are this far along in

661
00:30:06,840 --> 00:30:08,959
Speaker 1: high school, I guess I can take my foot off

662
00:30:08,960 --> 00:30:11,280
Speaker 1: the pedal and toss some money in there. And the

663
00:30:11,320 --> 00:30:13,600
Speaker 1: only other reason I would consider it is if your

664
00:30:13,640 --> 00:30:16,880
Speaker 1: state offers a sweet tax deduction. Oh yeah, because if

665
00:30:16,920 --> 00:30:19,280
Speaker 1: you live in a state without any tax income tax benefits,

666
00:30:19,440 --> 00:30:21,440
Speaker 1: I just don't really see the point of putting money

667
00:30:21,440 --> 00:30:23,240
Speaker 1: in a five twenty nine pound but account. But if

668
00:30:23,240 --> 00:30:25,840
Speaker 1: you do, you can just like literally consider it as

669
00:30:25,960 --> 00:30:28,920
Speaker 1: a tax evasion vehicle. And I don't act evasion. Yeah,

670
00:30:28,920 --> 00:30:30,800
Speaker 1: I don't miss. This is how you launder money, Scott.

671
00:30:30,960 --> 00:30:33,360
Speaker 1: It's a very legal way. But like we did that

672
00:30:33,400 --> 00:30:36,320
Speaker 1: with some of Emily's Yeah, some emilies grad school. We

673
00:30:36,440 --> 00:30:39,600
Speaker 1: just like stuck it in and took it out pretty quickly.

674
00:30:39,680 --> 00:30:42,240
Speaker 1: It goes in here, it says there for a day. Yeah,

675
00:30:42,240 --> 00:30:44,120
Speaker 1: that it goes out of We had to actually pay

676
00:30:44,160 --> 00:30:46,640
Speaker 1: the school bill. Okay, So two things that makes me

677
00:30:46,720 --> 00:30:49,680
Speaker 1: think that. First of all, Scott didn't say his name

678
00:30:49,720 --> 00:30:53,560
Speaker 1: at the beginning, so this listener question is being presented

679
00:30:53,600 --> 00:30:55,880
Speaker 1: here by Scott. But secondly, we always try to get

680
00:30:55,880 --> 00:30:57,360
Speaker 1: folks to say where they're from as well, because it

681
00:30:57,400 --> 00:30:59,600
Speaker 1: helps that just as a little bit of color right,

682
00:30:59,640 --> 00:31:03,880
Speaker 1: So the and so normally we information exactly because like

683
00:31:03,960 --> 00:31:08,000
Speaker 1: let's say Scott lives in California or Tennessee, well, yeah,

684
00:31:08,000 --> 00:31:09,760
Speaker 1: he's not getting a state break, right, but if he

685
00:31:09,800 --> 00:31:12,120
Speaker 1: lives in Georgia, or if he lives in New York,

686
00:31:12,400 --> 00:31:15,160
Speaker 1: you are going to get a deduction on your state

687
00:31:15,240 --> 00:31:17,640
Speaker 1: income tax there. And so that would have been something

688
00:31:17,720 --> 00:31:20,440
Speaker 1: that would have been helpful, helpful to know. But I

689
00:31:20,560 --> 00:31:23,360
Speaker 1: like how we're talking about this. It's money laundering because

690
00:31:23,400 --> 00:31:26,479
Speaker 1: there is a certain amount of that and it can

691
00:31:26,560 --> 00:31:29,400
Speaker 1: be significant away in a very legal way. But just

692
00:31:29,440 --> 00:31:32,200
Speaker 1: depending on how much he's looking he didn't say specific numbers,

693
00:31:32,560 --> 00:31:35,520
Speaker 1: but I mean we're talking about a large amount of money,

694
00:31:35,560 --> 00:31:38,440
Speaker 1: depending again, if he gets that state deduction. Were he

695
00:31:38,560 --> 00:31:41,480
Speaker 1: to if he's looking at socking away some serious amounts

696
00:31:41,480 --> 00:31:43,920
Speaker 1: of money, we could be talking thousands of dollars here.

697
00:31:43,960 --> 00:31:47,200
Speaker 1: But I agreed, and I also just think, don't don't

698
00:31:47,200 --> 00:31:49,480
Speaker 1: feel compelled to do this. And I love what he

699
00:31:49,560 --> 00:31:52,200
Speaker 1: said at the end. Then he was like, maybe maybe

700
00:31:52,200 --> 00:31:54,880
Speaker 1: my kids pay for pay for their home college. And

701
00:31:55,360 --> 00:31:57,720
Speaker 1: I think when we say yeah, that's a great idea,

702
00:31:58,080 --> 00:31:59,840
Speaker 1: some people might be like, why are you rooting against

703
00:31:59,880 --> 00:32:03,480
Speaker 1: his kids? To succeed. Why doesn't Scott owe his kids that?

704
00:32:03,600 --> 00:32:05,920
Speaker 1: And I just gotta say no, I don't think any

705
00:32:05,960 --> 00:32:09,280
Speaker 1: parent owes their kids paying for their higher education. I

706
00:32:09,320 --> 00:32:11,760
Speaker 1: just don't think that is something that comes with the

707
00:32:11,840 --> 00:32:16,120
Speaker 1: territory of procreating. But I think in some ways, actually

708
00:32:16,120 --> 00:32:19,160
Speaker 1: you're doing them a better service by allowing them to

709
00:32:20,280 --> 00:32:21,760
Speaker 1: pay for a lot of their own school, or at

710
00:32:21,840 --> 00:32:23,560
Speaker 1: least have to think through it. It forces them to

711
00:32:23,560 --> 00:32:26,560
Speaker 1: think about applying for scholarships, to reconsider which school they

712
00:32:26,640 --> 00:32:28,560
Speaker 1: choose to go to based on what sort of financial

713
00:32:28,600 --> 00:32:32,080
Speaker 1: aid packages each school offers them, and just as opposed

714
00:32:32,120 --> 00:32:34,040
Speaker 1: to like a blank check sort of mentality of right, well,

715
00:32:34,040 --> 00:32:35,840
Speaker 1: if I got in, that means I'm going to go there, right,

716
00:32:35,880 --> 00:32:37,080
Speaker 1: I'm going to go to the best school I got

717
00:32:37,080 --> 00:32:40,360
Speaker 1: into right right, Which also makes me think that maybe

718
00:32:40,400 --> 00:32:43,400
Speaker 1: that they're going to take more control of their education

719
00:32:43,480 --> 00:32:47,360
Speaker 1: and have more appreciation for it. My guess is my guess,

720
00:32:47,440 --> 00:32:49,160
Speaker 1: And this is just a stab in the dark, Matt.

721
00:32:49,400 --> 00:32:51,400
Speaker 1: The kids who have to think more about and pay

722
00:32:51,520 --> 00:32:54,680
Speaker 1: for more of their own education graduate in less time.

723
00:32:54,760 --> 00:32:56,800
Speaker 1: Maybe aren't taking the five or six year plan. I

724
00:32:56,800 --> 00:32:58,760
Speaker 1: think just more skin in the game is a good thing,

725
00:32:58,800 --> 00:33:01,920
Speaker 1: and so always on the back end, help your kids

726
00:33:01,960 --> 00:33:03,880
Speaker 1: pay off some of that student loan debt with some

727
00:33:03,920 --> 00:33:05,480
Speaker 1: of the money you've invested in and saved up. And

728
00:33:05,480 --> 00:33:06,840
Speaker 1: I think that's kind of what he's getting at. Yeah,

729
00:33:06,840 --> 00:33:09,200
Speaker 1: it was a little unclear at the end what he

730
00:33:09,240 --> 00:33:11,600
Speaker 1: was specifically asking, But if that's the case, then I

731
00:33:11,600 --> 00:33:13,880
Speaker 1: think I'm all for that. I think what he would

732
00:33:13,920 --> 00:33:17,560
Speaker 1: need to make sure that he avoids is getting bumped

733
00:33:17,600 --> 00:33:19,360
Speaker 1: up into a higher tax bracket. Right, Let's see, he's

734
00:33:19,360 --> 00:33:21,280
Speaker 1: still working. It sounds like he's like, oh, I'm still

735
00:33:21,800 --> 00:33:25,239
Speaker 1: earning money, I'm still contributing to my retirement accounts. If

736
00:33:25,280 --> 00:33:27,880
Speaker 1: he's got that income coming. But then on top of that,

737
00:33:27,920 --> 00:33:31,520
Speaker 1: he's taking money from retirement because again with him being

738
00:33:31,960 --> 00:33:36,160
Speaker 1: in those quote unquote retirement years, he's an older earner

739
00:33:36,360 --> 00:33:39,200
Speaker 1: and father. I guess you don't often consider the fact

740
00:33:39,200 --> 00:33:42,440
Speaker 1: that you are over sixty one or sixty two in

741
00:33:42,520 --> 00:33:45,680
Speaker 1: his case, while you have kids in college. But that

742
00:33:45,720 --> 00:33:47,280
Speaker 1: would be the problem, or that would be the only

743
00:33:47,280 --> 00:33:48,840
Speaker 1: potential problem that I could think of, is the fact

744
00:33:48,840 --> 00:33:50,840
Speaker 1: that that might bump him up. It's going to increase

745
00:33:51,040 --> 00:33:54,760
Speaker 1: his income for those years. But I really do love

746
00:33:54,800 --> 00:33:57,600
Speaker 1: the flexibility that that gives him down the road to say, hmm,

747
00:33:58,160 --> 00:34:01,880
Speaker 1: you've got these loans now as opposed to having sort

748
00:34:01,920 --> 00:34:05,760
Speaker 1: of front loaded or like pre funded college education. It's

749
00:34:05,760 --> 00:34:07,640
Speaker 1: the way to do it on the back end and

750
00:34:07,680 --> 00:34:10,040
Speaker 1: the flexibility of like waiting for the market to correct.

751
00:34:10,080 --> 00:34:12,800
Speaker 1: Let's say that, oh man, he's entering into a period

752
00:34:12,800 --> 00:34:15,960
Speaker 1: where my guy's not doing so well, so maybe you know,

753
00:34:16,160 --> 00:34:18,040
Speaker 1: how about you just keep making payments on the student

754
00:34:18,080 --> 00:34:19,360
Speaker 1: loans for a couple of years and let's see if

755
00:34:19,400 --> 00:34:21,319
Speaker 1: the market rebounds, and you know, I'll help you out

756
00:34:21,360 --> 00:34:23,120
Speaker 1: at that point it does, It's like, oh, hey, I

757
00:34:23,200 --> 00:34:25,239
Speaker 1: got a ten thousand dollars lump sum. I'm willing to

758
00:34:25,320 --> 00:34:28,360
Speaker 1: contribute towards paying on the student loans. So it really

759
00:34:28,680 --> 00:34:31,200
Speaker 1: it builds on how good the market does, sweetie. Yeah,

760
00:34:31,800 --> 00:34:33,640
Speaker 1: when I think so much comes down to the way

761
00:34:33,680 --> 00:34:37,120
Speaker 1: you talk about this with your kids. Yeah. Communication, And

762
00:34:37,200 --> 00:34:40,640
Speaker 1: it's not like this, hey, guess what I want you

763
00:34:40,640 --> 00:34:42,160
Speaker 1: to defend for yourself, Like I don't even think you

764
00:34:42,160 --> 00:34:44,520
Speaker 1: want to have the conversation like that, but it is

765
00:34:44,560 --> 00:34:47,759
Speaker 1: something along the lines of like, hey, I'm prioritizing this

766
00:34:48,200 --> 00:34:50,640
Speaker 1: may maybe I'll be able to help out in the future.

767
00:34:50,680 --> 00:34:53,480
Speaker 1: I can't write now, but let's have some thoughtful discussions

768
00:34:53,480 --> 00:34:55,240
Speaker 1: about what it looks like to find a great school

769
00:34:55,280 --> 00:34:57,200
Speaker 1: for you that doesn't cost an arm and a leg.

770
00:34:57,239 --> 00:35:00,399
Speaker 1: And I do think again, yeah, there will a greater

771
00:35:00,480 --> 00:35:03,359
Speaker 1: level of appreciation for that education if they have more

772
00:35:03,400 --> 00:35:05,160
Speaker 1: skin in the game from the get go. Totally agree.

773
00:35:05,360 --> 00:35:07,440
Speaker 1: I think you could land anywhere on that spectrum of

774
00:35:07,440 --> 00:35:09,440
Speaker 1: how much you end up paying for your kids college,

775
00:35:09,560 --> 00:35:11,400
Speaker 1: as long as you've talked about it well and they

776
00:35:11,480 --> 00:35:14,040
Speaker 1: understand why it is that that you're making that decision

777
00:35:14,160 --> 00:35:16,600
Speaker 1: when it comes to your finances. But Joe, let's keep moving.

778
00:35:16,920 --> 00:35:19,439
Speaker 1: Let's hear from a listener now who has recently found

779
00:35:19,520 --> 00:35:22,799
Speaker 1: himself with some additional cash on hand. What should he

780
00:35:23,120 --> 00:35:24,680
Speaker 1: do with those dollars?

781
00:35:24,920 --> 00:35:28,279
Speaker 3: Hey, Joel and Matt, it's Qui again, still all the

782
00:35:28,280 --> 00:35:31,720
Speaker 3: way from Shanjan, China. While we were working on things

783
00:35:31,719 --> 00:35:34,279
Speaker 3: with immigration for my wife, we were hit with a

784
00:35:34,320 --> 00:35:39,680
Speaker 3: devastating surprise. My mom passed away this past October. Grief aside.

785
00:35:40,200 --> 00:35:42,920
Speaker 3: My stepfather just paid me my mom's minority share of

786
00:35:42,960 --> 00:35:46,959
Speaker 3: the equity from their retirement property they moved into less

787
00:35:46,960 --> 00:35:50,560
Speaker 3: than a year ago. That equity amounts to just north

788
00:35:50,600 --> 00:35:54,160
Speaker 3: of one hundred thousand dollars. This brings up two questions

789
00:35:54,160 --> 00:35:57,040
Speaker 3: for my wife and me. The first is how to

790
00:35:57,120 --> 00:36:01,320
Speaker 3: approach this influx of money with the we pushed ourselves

791
00:36:01,360 --> 00:36:04,640
Speaker 3: in the money year five. We have no debts besides

792
00:36:04,680 --> 00:36:06,760
Speaker 3: my student loans that are still on the borrow defense

793
00:36:06,800 --> 00:36:09,600
Speaker 3: program and a mortgage that has been turned into a

794
00:36:09,760 --> 00:36:14,439
Speaker 3: somewhat profitable investment property. We have a long term goal

795
00:36:14,520 --> 00:36:17,200
Speaker 3: of four to seven years from now. We'll want to

796
00:36:17,440 --> 00:36:20,400
Speaker 3: get a house and plant roots in America, but we

797
00:36:20,480 --> 00:36:23,440
Speaker 3: could make that push to get our IRA and brokerage

798
00:36:23,480 --> 00:36:26,719
Speaker 3: accounts to one hundred thousand dollars or more. We know

799
00:36:26,800 --> 00:36:30,360
Speaker 3: that getting around that area tilts the compounding heavily in

800
00:36:30,400 --> 00:36:33,800
Speaker 3: our favor. So what should we do with the extra

801
00:36:33,880 --> 00:36:37,759
Speaker 3: money and where should we put it? Last quick question

802
00:36:37,880 --> 00:36:40,960
Speaker 3: is a lot shorter. What are the tax applications for

803
00:36:41,000 --> 00:36:44,720
Speaker 3: twenty twenty five after receiving this money? Are there any

804
00:36:45,680 --> 00:36:49,160
Speaker 3: Thanks y'all for any thoughts and suggestions during these ups

805
00:36:49,160 --> 00:36:50,800
Speaker 3: and downs over the last couple of years.

806
00:36:51,160 --> 00:36:53,120
Speaker 1: Man Quay has been listening for a long time and

807
00:36:53,760 --> 00:36:56,080
Speaker 1: pretty sure Quay is a holder of how the money

808
00:36:56,120 --> 00:36:59,480
Speaker 1: socks holder of where I hope you wear. Hope you

809
00:36:59,520 --> 00:37:01,239
Speaker 1: six months feet because if you just like hold him up,

810
00:37:01,239 --> 00:37:03,600
Speaker 1: it doesn't really do much. Yeah, but Quai, thanks for

811
00:37:03,680 --> 00:37:06,160
Speaker 1: thanks for listening for so long. So sorry to hear

812
00:37:06,280 --> 00:37:10,359
Speaker 1: about your mom's passing. And as anybody knows, everybody knows

813
00:37:10,400 --> 00:37:13,200
Speaker 1: who's lost somebody, like money doesn't make up for it.

814
00:37:13,719 --> 00:37:17,799
Speaker 1: But it is also true that a six figure lump

815
00:37:17,840 --> 00:37:20,240
Speaker 1: sum it can make a big difference in your ability

816
00:37:20,280 --> 00:37:22,359
Speaker 1: to hit your financial goal. So I think you can

817
00:37:22,520 --> 00:37:25,279
Speaker 1: even think about how you use this money as a

818
00:37:25,280 --> 00:37:27,759
Speaker 1: way to honor your mom's legacy. I like that. So, yeah,

819
00:37:27,800 --> 00:37:30,040
Speaker 1: well we'll offer a few ways to potentially use that

820
00:37:30,080 --> 00:37:34,439
Speaker 1: inheritance wisely to grow your wealth. And I don't know, Matt,

821
00:37:34,480 --> 00:37:37,680
Speaker 1: but before we talk about like investing it, maybe you

822
00:37:37,719 --> 00:37:40,160
Speaker 1: have like a you don't want to be prudent with

823
00:37:40,280 --> 00:37:43,120
Speaker 1: like every dollar that you get from an inheritance. What

824
00:37:43,120 --> 00:37:45,360
Speaker 1: do you think, yes, he should you think? So? Yeah, yeah, Quays,

825
00:37:45,520 --> 00:37:47,000
Speaker 1: he's been doing the right thing for a long time

826
00:37:47,120 --> 00:37:49,040
Speaker 1: and he's just going to continue to do the right

827
00:37:49,080 --> 00:37:51,840
Speaker 1: thing for Yeah. No, I do think like truly because

828
00:37:51,840 --> 00:37:53,480
Speaker 1: of the fact that we kind of know Quay and

829
00:37:53,520 --> 00:37:56,320
Speaker 1: he's been making smart moves with his money. It's okay

830
00:37:56,560 --> 00:37:59,560
Speaker 1: to occasionally like just let off the gas a little bit, right,

831
00:37:59,600 --> 00:38:01,560
Speaker 1: and so to take a little bit of that money

832
00:38:02,280 --> 00:38:05,840
Speaker 1: and just spend a little bit a bit more frivolously,

833
00:38:06,000 --> 00:38:09,760
Speaker 1: maybe on something that you otherwise wouldn't spend money on. Quay,

834
00:38:09,880 --> 00:38:11,480
Speaker 1: It's kind of like all work and no play makes

835
00:38:11,520 --> 00:38:14,520
Speaker 1: Jack a dull boy. I think, especially when it's a

836
00:38:14,560 --> 00:38:17,799
Speaker 1: sum of money that you weren't expecting and all you

837
00:38:17,880 --> 00:38:20,279
Speaker 1: do is bear down and do the quote unquote right

838
00:38:20,320 --> 00:38:22,359
Speaker 1: thing with it, I think he can take some luster

839
00:38:22,400 --> 00:38:23,920
Speaker 1: out of it. It just depends on the person, though, Like

840
00:38:23,920 --> 00:38:25,560
Speaker 1: there's a lot of folks who are just like, Nope,

841
00:38:25,680 --> 00:38:28,000
Speaker 1: that money is just like all the rest of my money,

842
00:38:28,080 --> 00:38:30,040
Speaker 1: and it's going to enter into the machine. In the

843
00:38:30,080 --> 00:38:33,960
Speaker 1: machine is going I mean, that's more of my approach, yeah,

844
00:38:34,200 --> 00:38:37,240
Speaker 1: where like I'm not going to necessarily change my life.

845
00:38:37,600 --> 00:38:40,360
Speaker 1: But I do understand how for some folks, especially I

846
00:38:40,360 --> 00:38:42,880
Speaker 1: don't know, it's something that's tied more to an individual

847
00:38:42,960 --> 00:38:45,279
Speaker 1: like that, that that could be a way for them

848
00:38:45,320 --> 00:38:48,799
Speaker 1: to set apart some funds away, for them to remember that,

849
00:38:49,040 --> 00:38:50,959
Speaker 1: you know, that individual that loved one in a way

850
00:38:51,040 --> 00:38:54,320
Speaker 1: that brings back good memories. Sure, I had a friend

851
00:38:54,400 --> 00:38:56,239
Speaker 1: HiT's a trip or even like an imouth just thinking

852
00:38:56,280 --> 00:38:58,520
Speaker 1: like what if quay about knee bike and every time

853
00:38:58,520 --> 00:39:00,200
Speaker 1: you rode that bike you thought about his mom. It's

854
00:39:00,280 --> 00:39:01,640
Speaker 1: kind of like when I go on vacation and I

855
00:39:01,760 --> 00:39:03,439
Speaker 1: get an article of clothing, whether it's like a hat

856
00:39:03,520 --> 00:39:06,680
Speaker 1: or a shirt. I love that versus something that is

857
00:39:06,719 --> 00:39:08,680
Speaker 1: like an inanimate object in my house because like every

858
00:39:08,680 --> 00:39:10,640
Speaker 1: time I put it on, I smile on my face

859
00:39:10,640 --> 00:39:12,680
Speaker 1: because I think about that trip. And maybe it's the

860
00:39:12,719 --> 00:39:14,400
Speaker 1: same thing. Really happens when the shirt wears out there

861
00:39:14,400 --> 00:39:17,239
Speaker 1: and you throw it away? Do you forget? Do you

862
00:39:17,280 --> 00:39:19,480
Speaker 1: forget about this question? I probably forget about the trip.

863
00:39:19,760 --> 00:39:22,600
Speaker 1: Then you're like, oh, what a vacation? Yeah? Yeah, well,

864
00:39:22,760 --> 00:39:24,239
Speaker 1: I guess in a similar way, I was gonna mention

865
00:39:24,280 --> 00:39:28,319
Speaker 1: a friend of mine when his grandma died. He used

866
00:39:28,320 --> 00:39:31,080
Speaker 1: some he was like really into watches, or I think

867
00:39:31,080 --> 00:39:32,880
Speaker 1: he was maybe wanting to get into watches, and so

868
00:39:32,920 --> 00:39:35,000
Speaker 1: he used some of that money to buy himself a

869
00:39:35,120 --> 00:39:37,880
Speaker 1: nice time piece that he wears to this day. And

870
00:39:37,920 --> 00:39:40,000
Speaker 1: every time, yeah he looks at that, he just remembers

871
00:39:40,040 --> 00:39:42,839
Speaker 1: the legacy that she was able to set up, and

872
00:39:42,880 --> 00:39:44,279
Speaker 1: in their case it was had a lot to do

873
00:39:44,320 --> 00:39:46,800
Speaker 1: with real estate as well, So I don't know, I

874
00:39:46,840 --> 00:39:48,360
Speaker 1: felt like that was a was the first time I

875
00:39:48,400 --> 00:39:51,319
Speaker 1: had heard one of my peers doing something similar to

876
00:39:51,360 --> 00:39:54,200
Speaker 1: that as well. But I think that's worth considering, especially

877
00:39:54,440 --> 00:39:56,480
Speaker 1: given that Quay has been making a lot of the

878
00:39:56,560 --> 00:39:59,440
Speaker 1: right money moves over a pretty long period of time. Yeah,

879
00:39:59,520 --> 00:40:02,919
Speaker 1: don't go, but a small splurge with a portion of

880
00:40:02,960 --> 00:40:05,480
Speaker 1: this money could be smart and quite It sounds like

881
00:40:05,560 --> 00:40:08,560
Speaker 1: your home purchase is far enough away that other priorities

882
00:40:08,640 --> 00:40:10,680
Speaker 1: make more sense than to be like funneling money into

883
00:40:10,719 --> 00:40:13,920
Speaker 1: a savings account for a down payment, And I like

884
00:40:14,000 --> 00:40:17,279
Speaker 1: the goal of getting your tax advantaged accounts ROTH IRA,

885
00:40:17,320 --> 00:40:18,840
Speaker 1: hopefully you said, Ira, I'm not sure if it's a

886
00:40:18,920 --> 00:40:22,640
Speaker 1: ROTH and your taxbile brokerage account into six figures that

887
00:40:23,640 --> 00:40:26,400
Speaker 1: I'm just reminded. I think maybe I mentioned this quote recently,

888
00:40:26,440 --> 00:40:29,760
Speaker 1: but Charlie Munger talks about you should do everything humanly

889
00:40:29,760 --> 00:40:31,680
Speaker 1: possible to get to that first hundred K. Whether it's

890
00:40:31,719 --> 00:40:35,000
Speaker 1: like walking and using coupons, it doesn't matter. Do whatever

891
00:40:35,040 --> 00:40:37,879
Speaker 1: it takes to get there, because that is it is

892
00:40:37,920 --> 00:40:41,480
Speaker 1: an important, important threshold across, so that then, yes, your

893
00:40:41,520 --> 00:40:43,600
Speaker 1: money started. It just feels like your money is working

894
00:40:43,600 --> 00:40:46,000
Speaker 1: for you in a more significant way once you get

895
00:40:46,040 --> 00:40:48,680
Speaker 1: to that level of wealth. And the WROTH, I think

896
00:40:48,719 --> 00:40:51,760
Speaker 1: in particular, is a killer account because if your personal

897
00:40:51,840 --> 00:40:55,040
Speaker 1: finance situation continues to make progress, you might never need

898
00:40:55,080 --> 00:40:56,919
Speaker 1: to tap it in order to buy that house five

899
00:40:56,960 --> 00:40:58,640
Speaker 1: plus years from now. You might be like, oh, yeah,

900
00:40:58,640 --> 00:41:00,640
Speaker 1: we were maxing out the ROTH, but we also were

901
00:41:00,680 --> 00:41:02,319
Speaker 1: of savement on the side, and so we did both

902
00:41:02,360 --> 00:41:05,040
Speaker 1: things at once. But you're also going to have the

903
00:41:05,080 --> 00:41:09,000
Speaker 1: ability to use some of those WROTH contribution dollars to

904
00:41:09,040 --> 00:41:12,040
Speaker 1: help fund a payment a down payment if you have to.

905
00:41:12,440 --> 00:41:15,600
Speaker 1: And so the flexibility of the WROTH is one of

906
00:41:15,600 --> 00:41:17,680
Speaker 1: the key attributes that make it excellent. So our goal

907
00:41:17,680 --> 00:41:20,400
Speaker 1: will be to max that out I think before contributing

908
00:41:20,680 --> 00:41:22,919
Speaker 1: really anything to your taxable broker's account and then putting

909
00:41:22,960 --> 00:41:24,759
Speaker 1: that in second place. So I would just kind of

910
00:41:24,760 --> 00:41:26,640
Speaker 1: make a plan to max it out each and every year,

911
00:41:26,920 --> 00:41:29,480
Speaker 1: to hold on to enough cash to fully fund it,

912
00:41:29,520 --> 00:41:32,439
Speaker 1: and you know, twenty twenty six and then twenty twenty

913
00:41:32,480 --> 00:41:34,920
Speaker 1: seven as well, just so that you're you're not missing

914
00:41:34,960 --> 00:41:37,759
Speaker 1: out on any dollar that you can stick into your wroth. Yeah,

915
00:41:37,800 --> 00:41:41,600
Speaker 1: we're unfortunate circumstances to arise. You can still max out

916
00:41:41,640 --> 00:41:43,640
Speaker 1: that account. I wanted to speak. You mentioned kind of

917
00:41:43,680 --> 00:41:48,320
Speaker 1: the Charlie Munger quote and the six figure retirement portfolio amount.

918
00:41:48,520 --> 00:41:51,719
Speaker 1: I don't think there's any magic to hitting one hundred k.

919
00:41:52,160 --> 00:41:54,440
Speaker 1: I do mental magic, I think it is. Yeah, I

920
00:41:54,440 --> 00:41:57,480
Speaker 1: think I do think there's some like some numbers behind

921
00:41:57,560 --> 00:41:59,600
Speaker 1: it as well, right, But I just the fact that

922
00:41:59,600 --> 00:42:01,480
Speaker 1: you get to, say, six figures though, that's just a

923
00:42:01,480 --> 00:42:03,719
Speaker 1: lot of fun. Going from five figures that you've been

924
00:42:03,760 --> 00:42:05,680
Speaker 1: at for quite a while to six figures. It just

925
00:42:05,719 --> 00:42:09,120
Speaker 1: psychologically it feels like a money win. But I think

926
00:42:09,440 --> 00:42:12,280
Speaker 1: one of the things that happens once you get around

927
00:42:12,400 --> 00:42:14,600
Speaker 1: and again it's not hitting that six figure mark, but

928
00:42:14,640 --> 00:42:17,560
Speaker 1: once you start getting a portfolio that's around one hundred

929
00:42:17,560 --> 00:42:21,680
Speaker 1: thousand dollars, is that the returns on your investment start

930
00:42:21,760 --> 00:42:25,239
Speaker 1: to equal roughly about what it is that you can

931
00:42:25,239 --> 00:42:28,759
Speaker 1: contribute yourself, right, And so it's sort of like this

932
00:42:28,760 --> 00:42:31,319
Speaker 1: this point and it's again it's not like a hard

933
00:42:31,560 --> 00:42:34,040
Speaker 1: line that you're crossing, but you know, once you start

934
00:42:34,040 --> 00:42:38,120
Speaker 1: getting up there close to seventy eighty ninety thousand, it

935
00:42:38,120 --> 00:42:40,800
Speaker 1: feels like somebody else is contributing to your retirement account

936
00:42:40,840 --> 00:42:43,000
Speaker 1: in addition to you, where it feels like the wins

937
00:42:43,000 --> 00:42:45,239
Speaker 1: at your back a little bit. And obviously the more

938
00:42:45,280 --> 00:42:47,920
Speaker 1: it builds beyond that, it's it's even better. Those like

939
00:42:47,960 --> 00:42:50,520
Speaker 1: sub thirty or forty thousand dollars accounts, you still feel

940
00:42:50,520 --> 00:42:52,040
Speaker 1: like you're doing all the heavy liftings, so you're right,

941
00:42:52,080 --> 00:42:53,879
Speaker 1: sounds like you're spitting into the wind. Yeah, and then

942
00:42:53,960 --> 00:42:57,040
Speaker 1: once you get towards like the seven figure mark, that's

943
00:42:57,040 --> 00:43:00,560
Speaker 1: where it starts to feel like the portfolio doing more

944
00:43:00,560 --> 00:43:02,600
Speaker 1: work than you are in your day jus game. Yeah,

945
00:43:02,600 --> 00:43:04,440
Speaker 1: and yeah, not just when it comes to your contributions,

946
00:43:04,440 --> 00:43:06,880
Speaker 1: but how much you could potentially even earn at your

947
00:43:06,880 --> 00:43:10,520
Speaker 1: full time job. But you mentioned maybe sticking the additional

948
00:43:10,520 --> 00:43:13,200
Speaker 1: funds into that brokerage. I like what you said about

949
00:43:13,400 --> 00:43:15,600
Speaker 1: just sort of earmarking that cash and just kind of

950
00:43:15,600 --> 00:43:18,960
Speaker 1: having it on hand, because I will say, Quay mentioned

951
00:43:18,960 --> 00:43:21,120
Speaker 1: that in something like four to seven years they want

952
00:43:21,160 --> 00:43:24,560
Speaker 1: to buy that house, and if you wanted to take

953
00:43:24,600 --> 00:43:28,719
Speaker 1: a more conservative approach to ensuring that you had enough

954
00:43:28,719 --> 00:43:31,839
Speaker 1: money on hand to purchase that home, I think if

955
00:43:31,840 --> 00:43:34,640
Speaker 1: it was me. It would depend on how married to

956
00:43:34,840 --> 00:43:38,080
Speaker 1: that idea I was. And I don't know your situation, quay,

957
00:43:38,120 --> 00:43:39,960
Speaker 1: And if you think there's a chance that you're going

958
00:43:40,040 --> 00:43:42,760
Speaker 1: to be I mean, he's living over in China. How

959
00:43:42,800 --> 00:43:45,319
Speaker 1: permanent is your stay over? Like could it be that

960
00:43:45,440 --> 00:43:46,680
Speaker 1: in like, oh, hey, you got to be out of

961
00:43:46,680 --> 00:43:49,200
Speaker 1: this country in three months sort of thing. If that

962
00:43:49,239 --> 00:43:50,879
Speaker 1: were to be the case, I think I would start

963
00:43:50,880 --> 00:43:53,239
Speaker 1: looking to some of the cities or towns that he

964
00:43:53,360 --> 00:43:55,560
Speaker 1: knows he might want to want to live, get a

965
00:43:55,600 --> 00:43:58,000
Speaker 1: feel for some of the just what home prices are,

966
00:43:58,520 --> 00:44:01,799
Speaker 1: and I would personally, I think I would sleep better

967
00:44:01,840 --> 00:44:04,200
Speaker 1: at night knowing that I've got a down payment in

968
00:44:04,440 --> 00:44:08,440
Speaker 1: like basically on hand ready to deploy. Were we to

969
00:44:08,520 --> 00:44:11,800
Speaker 1: have to move back home earlier than expected, there's I

970
00:44:11,800 --> 00:44:13,920
Speaker 1: don't know, there's just some peace of mind. Is that

971
00:44:13,920 --> 00:44:16,480
Speaker 1: timeline that is exact? Right? So if the timeline is like, yeah,

972
00:44:16,480 --> 00:44:18,400
Speaker 1: it's probably five to eight years, but I don't know,

973
00:44:18,400 --> 00:44:20,680
Speaker 1: it could be two, well then that does things or

974
00:44:20,680 --> 00:44:23,239
Speaker 1: even less. Yeah, But also how married is he to

975
00:44:23,320 --> 00:44:25,200
Speaker 1: the idea of buying a house. That's another important question

976
00:44:25,239 --> 00:44:27,080
Speaker 1: because it was like, I don't know if if the

977
00:44:27,360 --> 00:44:29,560
Speaker 1: if the money made sense, we buy. But if it

978
00:44:29,560 --> 00:44:32,160
Speaker 1: didn't and we can finally good spot, we rent. So

979
00:44:32,360 --> 00:44:34,840
Speaker 1: if that's the case, then the down payment savings really

980
00:44:34,840 --> 00:44:37,200
Speaker 1: doesn't make as much sense. Yeah, so much. There's a

981
00:44:37,239 --> 00:44:39,360
Speaker 1: few other factors to keep into mind. Let's tackle the

982
00:44:39,400 --> 00:44:42,000
Speaker 1: last thing Quay asked about on the tax front, taxes,

983
00:44:42,160 --> 00:44:45,200
Speaker 1: tax consequence. There should not be any tax consequences, and

984
00:44:45,360 --> 00:44:48,840
Speaker 1: that's because the federal estate tax it's highly unlikely to

985
00:44:48,920 --> 00:44:50,520
Speaker 1: be an issue giving the amount we're talking about. I

986
00:44:50,520 --> 00:44:54,600
Speaker 1: believe the threshold typically for estate taxes like inheritance of

987
00:44:54,600 --> 00:44:58,839
Speaker 1: like fourteen million. I'm not sure where you file your taxes, Quay,

988
00:44:58,920 --> 00:45:01,920
Speaker 1: but a few states to have their own inheritance inheritance tax,

989
00:45:02,320 --> 00:45:04,480
Speaker 1: so I think it's six states, so just be aware

990
00:45:04,480 --> 00:45:09,200
Speaker 1: of that. But it's unlikely, right, So, probably no tax consequences.

991
00:45:09,800 --> 00:45:12,799
Speaker 1: Best of luck, though, as you proceed, and we hope

992
00:45:12,840 --> 00:45:15,839
Speaker 1: you're able to achieve those goals that you've set out

993
00:45:15,840 --> 00:45:17,800
Speaker 1: for yourself. Or Now we've got a couple more questions

994
00:45:17,800 --> 00:45:21,480
Speaker 1: to get to, specifically, actually two different questions about money

995
00:45:21,800 --> 00:45:25,480
Speaker 1: for kids in interesting scenarios. We'll get to those right

996
00:45:25,520 --> 00:45:36,280
Speaker 1: after this. All right, buddy, we are back from the break,

997
00:45:36,520 --> 00:45:39,040
Speaker 1: and now we're gonna get to the Facebook question of

998
00:45:39,040 --> 00:45:42,360
Speaker 1: the week. This one is from Janie, and she wrote,

999
00:45:42,440 --> 00:45:44,680
Speaker 1: I have a sixteen year old daughter that is traveling

1000
00:45:44,680 --> 00:45:47,480
Speaker 1: to Europe with her orchestra group in March. I was

1001
00:45:47,520 --> 00:45:49,200
Speaker 1: thinking it would be easier to send her with a

1002
00:45:49,239 --> 00:45:51,920
Speaker 1: credit card to avoid her having to have cash on hand.

1003
00:45:52,239 --> 00:45:56,080
Speaker 1: I'm looking for a free credit card with no foreign

1004
00:45:56,080 --> 00:45:58,719
Speaker 1: transaction fees. Or is it better to just add her

1005
00:45:58,800 --> 00:46:01,800
Speaker 1: as a user to our current credit card? What do

1006
00:46:01,840 --> 00:46:04,600
Speaker 1: you think, Joel? First things first, new card. High school

1007
00:46:04,600 --> 00:46:06,959
Speaker 1: trips have gotten way better since I was in high school.

1008
00:46:07,000 --> 00:46:08,920
Speaker 1: I didn't takeny high school trips when I went to

1009
00:46:08,920 --> 00:46:11,640
Speaker 1: New York City with the Marching Band. Really, yeah, did

1010
00:46:11,680 --> 00:46:14,640
Speaker 1: y'all play in the Macy's Dave Paride thing. I'm trying

1011
00:46:14,640 --> 00:46:17,720
Speaker 1: to remember where we played. Wait, you wouldn't have remembered

1012
00:46:17,760 --> 00:46:19,520
Speaker 1: if you played in the No, I didn't play. Thanks,

1013
00:46:19,880 --> 00:46:22,200
Speaker 1: it wasn't that right before we played though? Why were

1014
00:46:22,200 --> 00:46:24,200
Speaker 1: we there? I don't even remember. It's so long ago.

1015
00:46:24,320 --> 00:46:27,320
Speaker 1: My memory is terrible. My nephew just went to Japan

1016
00:46:27,520 --> 00:46:29,520
Speaker 1: and Korea for like a week and a half with

1017
00:46:29,560 --> 00:46:31,480
Speaker 1: his school. Oh my gosh, I was like how much

1018
00:46:31,560 --> 00:46:36,080
Speaker 1: that cost? It was, but very cool that the school

1019
00:46:36,120 --> 00:46:38,560
Speaker 1: trips have gotten this good nephew whose mom just got

1020
00:46:38,600 --> 00:46:42,840
Speaker 1: a raise, right, and she's like, I know, goodness, I

1021
00:46:42,840 --> 00:46:45,120
Speaker 1: got a massive fat bonus to pay for them, exactly

1022
00:46:45,239 --> 00:46:48,839
Speaker 1: right for that trip. So specifically, though, on Jamie's question, though,

1023
00:46:48,920 --> 00:46:51,319
Speaker 1: authorized user status on one of your cards, that should

1024
00:46:51,400 --> 00:46:53,000
Speaker 1: just be the way to go here, because she'd need

1025
00:46:53,000 --> 00:46:55,520
Speaker 1: to be eighteen to apply for her own credit card. Yeah,

1026
00:46:55,520 --> 00:46:57,960
Speaker 1: it's not like it used to be where I'm pretty

1027
00:46:57,960 --> 00:46:59,239
Speaker 1: sure I got my first credit card and I was

1028
00:46:59,280 --> 00:47:01,960
Speaker 1: like thirteen, fourteen years old. I'm serious, I remember getting

1029
00:47:01,960 --> 00:47:03,680
Speaker 1: when you probably lied on the application, that's probably. I

1030
00:47:03,680 --> 00:47:05,120
Speaker 1: don't even think I did. I think the credit card

1031
00:47:05,320 --> 00:47:07,880
Speaker 1: company was just like, yeah, whatever, I am used to

1032
00:47:07,880 --> 00:47:09,440
Speaker 1: give them out like candy. I am not even kidding.

1033
00:47:09,480 --> 00:47:12,600
Speaker 1: Oh for sure, definitely still in the house. Definitely not

1034
00:47:12,680 --> 00:47:15,040
Speaker 1: in college. That was before the Card Act passed, so

1035
00:47:15,120 --> 00:47:18,319
Speaker 1: sure they're a little more flexibility there. But you know,

1036
00:47:18,360 --> 00:47:21,480
Speaker 1: by having authorized user status on your card, you're going

1037
00:47:21,520 --> 00:47:23,480
Speaker 1: to be helping her actually to build a good credit

1038
00:47:23,560 --> 00:47:26,920
Speaker 1: standing early, which is clutch. Yep. And that's assuming you

1039
00:47:26,960 --> 00:47:28,879
Speaker 1: handle your credit card well and you've got a good

1040
00:47:29,040 --> 00:47:31,200
Speaker 1: credit score. But if so, she'll start to look like

1041
00:47:31,239 --> 00:47:34,080
Speaker 1: a good borrower by proxy thanks to you. And it's

1042
00:47:34,080 --> 00:47:35,560
Speaker 1: just this wonderful thing to be able to do for

1043
00:47:35,640 --> 00:47:38,360
Speaker 1: your kid. It takes a very little effort for some parents,

1044
00:47:38,400 --> 00:47:40,239
Speaker 1: by the way, for everyone else out there listening. Some

1045
00:47:40,320 --> 00:47:42,400
Speaker 1: cards don't let you do it until your kids turn thirteen.

1046
00:47:42,719 --> 00:47:45,600
Speaker 1: Others will allow it for basically kids of any age,

1047
00:47:46,000 --> 00:47:49,439
Speaker 1: even your newborns. Yeah, so just look at my kids

1048
00:47:49,400 --> 00:47:52,439
Speaker 1: are authorized users on what I can remember which card

1049
00:47:52,440 --> 00:47:54,560
Speaker 1: it was, but they're all they're authorized. You know what's

1050
00:47:54,560 --> 00:47:58,000
Speaker 1: funny is one of our cards recently expired and I

1051
00:47:58,080 --> 00:48:01,560
Speaker 1: evidently I had one of our kids on there as

1052
00:48:01,600 --> 00:48:05,000
Speaker 1: an authorized user. And Kate was like, wait, how come

1053
00:48:05,120 --> 00:48:07,160
Speaker 1: I'm not on this line? She doesn't have that card,

1054
00:48:07,200 --> 00:48:10,720
Speaker 1: but one of the kids does. She was just annoyed.

1055
00:48:10,760 --> 00:48:13,200
Speaker 1: She's like, where's my card? But I think this is

1056
00:48:13,239 --> 00:48:16,759
Speaker 1: also a great time for your daughter, Jamie to just

1057
00:48:16,920 --> 00:48:19,319
Speaker 1: practice and to test and see what it's like for

1058
00:48:19,360 --> 00:48:21,440
Speaker 1: her to have a credit card, because obviously it's going

1059
00:48:21,480 --> 00:48:23,080
Speaker 1: to be attached to your account, so you can see

1060
00:48:23,120 --> 00:48:26,080
Speaker 1: how she's using it and then any mistakes that she makes,

1061
00:48:26,480 --> 00:48:29,080
Speaker 1: well she's under your roof. That is going to be

1062
00:48:29,160 --> 00:48:32,239
Speaker 1: easier to remedy and to teach her about it than

1063
00:48:32,440 --> 00:48:34,200
Speaker 1: where they, you know, were she to get her first

1064
00:48:34,200 --> 00:48:36,000
Speaker 1: card while she's away at college. It's sort of like

1065
00:48:36,080 --> 00:48:39,239
Speaker 1: having bumpers on at the bowling alley, like you are participating,

1066
00:48:39,280 --> 00:48:41,640
Speaker 1: you're throwing the ball. I always score higher that way.

1067
00:48:41,760 --> 00:48:45,200
Speaker 1: Do you haven't bowled in forever? It's been a long time, man.

1068
00:48:45,239 --> 00:48:46,800
Speaker 1: Bowling is such an underrated I want to take the

1069
00:48:46,840 --> 00:48:48,560
Speaker 1: family bowling at some point. It is fun, but it

1070
00:48:48,560 --> 00:48:51,640
Speaker 1: always feels like a nice winter sort of activity, Like

1071
00:48:51,680 --> 00:48:53,640
Speaker 1: I don't want to go bowling when it's beautiful outside

1072
00:48:53,800 --> 00:48:56,600
Speaker 1: January perfect bowling month, January February perhaps, But I think

1073
00:48:56,600 --> 00:48:58,640
Speaker 1: that could be a great way for her just to

1074
00:48:58,680 --> 00:49:01,000
Speaker 1: test the waters a little bit, kind of get used

1075
00:49:01,040 --> 00:49:04,640
Speaker 1: to what it's like to make mistakes or maybe overspend

1076
00:49:04,920 --> 00:49:07,440
Speaker 1: in a way. Yep, while your eyes are on this

1077
00:49:07,920 --> 00:49:10,360
Speaker 1: is on this card as opposed to when it's completely

1078
00:49:10,400 --> 00:49:13,040
Speaker 1: in her name and you don't have any visibility into

1079
00:49:13,080 --> 00:49:15,799
Speaker 1: that basically, and if yes, for no foreign transaction fee

1080
00:49:15,880 --> 00:49:19,200
Speaker 1: cards are gonna that's what you're gonna want. You probably

1081
00:49:19,360 --> 00:49:21,640
Speaker 1: already have one or two Jamie. I would look because

1082
00:49:21,680 --> 00:49:23,919
Speaker 1: I feel like the majority of cards now have zero

1083
00:49:24,040 --> 00:49:26,760
Speaker 1: foreign transaction fees, but not all of them, So definitely

1084
00:49:26,760 --> 00:49:29,360
Speaker 1: prioritize adding her as an authorized user to one of

1085
00:49:29,360 --> 00:49:32,800
Speaker 1: the cards that doesn't charge for spending when she's abroad.

1086
00:49:33,480 --> 00:49:35,560
Speaker 1: You might also want to center her with a debit

1087
00:49:35,600 --> 00:49:38,000
Speaker 1: card that also comes with no foreign transaction fees so

1088
00:49:38,000 --> 00:49:42,080
Speaker 1: she can get some cash out because our society is

1089
00:49:42,120 --> 00:49:45,239
Speaker 1: pretty plastic centric. I actually met gave my daughter some

1090
00:49:45,280 --> 00:49:47,520
Speaker 1: cash yesterday to get a popsicle at a neighborhood event,

1091
00:49:47,880 --> 00:49:49,719
Speaker 1: and they came back and they were like, they don't

1092
00:49:49,760 --> 00:49:52,360
Speaker 1: take cash, and that is like why. I know that

1093
00:49:52,480 --> 00:49:55,560
Speaker 1: is a common occurrence here in our country, but it's

1094
00:49:55,640 --> 00:49:57,840
Speaker 1: less common I think in other parts of the world.

1095
00:49:58,040 --> 00:50:00,520
Speaker 1: You don't want her carrying too much because of potential theft,

1096
00:50:00,560 --> 00:50:02,920
Speaker 1: so make sure you talk about security and keeping that

1097
00:50:02,960 --> 00:50:06,239
Speaker 1: money close. But the best way to get cash is

1098
00:50:06,360 --> 00:50:09,480
Speaker 1: at N ATM once she lands. So if you have

1099
00:50:09,800 --> 00:50:12,480
Speaker 1: a debit card, typically the ones Capital one we've talked

1100
00:50:12,520 --> 00:50:15,920
Speaker 1: about that bank discover those are zero percent foreign transaction

1101
00:50:16,000 --> 00:50:18,239
Speaker 1: feed debit cards. If you have a bank account there,

1102
00:50:18,600 --> 00:50:20,759
Speaker 1: send her with that debit card and have her pull

1103
00:50:20,800 --> 00:50:23,080
Speaker 1: out one hundred and fifty two hundred bucks maybe so

1104
00:50:23,120 --> 00:50:25,200
Speaker 1: that she does have some spending cash. But she has

1105
00:50:25,200 --> 00:50:27,440
Speaker 1: the credit card too if she needs real quick. Let's

1106
00:50:27,480 --> 00:50:29,719
Speaker 1: take this one from Patricia. She wrote, I want a

1107
00:50:29,880 --> 00:50:31,960
Speaker 1: phone for my eleven year old that will allow her

1108
00:50:31,960 --> 00:50:34,000
Speaker 1: to call or text me as well as our friends,

1109
00:50:34,239 --> 00:50:36,640
Speaker 1: but that doesn't have Internet access and won't let her

1110
00:50:36,680 --> 00:50:39,480
Speaker 1: get on social media. Kidos to you Patricia for that.

1111
00:50:39,800 --> 00:50:41,560
Speaker 1: I see a lot of flip phones available, but I'm

1112
00:50:41,600 --> 00:50:43,560
Speaker 1: not sure which ones are good, what kind of plan

1113
00:50:43,640 --> 00:50:46,600
Speaker 1: to get, which services to use. My husband and I

1114
00:50:46,719 --> 00:50:49,600
Speaker 1: are on Visible, which I like that man Visible, that's

1115
00:50:49,600 --> 00:50:52,000
Speaker 1: one of those mvn o's for sure. Visible rocks and

1116
00:50:52,120 --> 00:50:54,560
Speaker 1: v and O by the way, Mobile Virtual Network Operator.

1117
00:50:54,600 --> 00:50:56,600
Speaker 1: And let's not rid our kids' brains out with social media.

1118
00:50:56,640 --> 00:50:58,839
Speaker 1: Try and avoid that for my kids. Hey, whin, we're

1119
00:50:58,840 --> 00:51:01,960
Speaker 1: gonna upon the bandwagon. And I don't know how long

1120
00:51:02,000 --> 00:51:04,680
Speaker 1: you can hold off on this. A sixteen sixteen I

1121
00:51:04,719 --> 00:51:06,839
Speaker 1: think is a first You got wait till eight that's

1122
00:51:06,880 --> 00:51:10,000
Speaker 1: the cell phone, so wait till eighth grade, and then

1123
00:51:10,120 --> 00:51:13,319
Speaker 1: that's the Jonathan Height recommendation sixteen for that makes sense

1124
00:51:13,400 --> 00:51:16,919
Speaker 1: to me? Or wait even longer. Yeah, well, let's there's

1125
00:51:16,960 --> 00:51:19,000
Speaker 1: There were some good suggestions in the Facebook group on this.

1126
00:51:19,160 --> 00:51:21,040
Speaker 1: We actually had one of the suggestions that a lot

1127
00:51:21,040 --> 00:51:24,719
Speaker 1: of people offered was gab Gabb, which was we used

1128
00:51:24,719 --> 00:51:28,239
Speaker 1: a Gab watch for our middle child. It has limited capability,

1129
00:51:28,280 --> 00:51:30,000
Speaker 1: but it made it easy for her to call and

1130
00:51:30,000 --> 00:51:33,239
Speaker 1: text from that watch. They have smartphones too, and that

1131
00:51:33,360 --> 00:51:36,120
Speaker 1: was what we wanted. But here was the part that

1132
00:51:36,320 --> 00:51:38,600
Speaker 1: rubbed me the wrong way. Matt. It was expensive. The

1133
00:51:38,680 --> 00:51:41,120
Speaker 1: watch was free, is kind of this fremium sort of model,

1134
00:51:41,280 --> 00:51:43,480
Speaker 1: but then the service ended up being more than I

1135
00:51:43,480 --> 00:51:45,680
Speaker 1: wanted to pay. It was seventeen dollars a month, maybe

1136
00:51:45,920 --> 00:51:49,680
Speaker 1: almost nineteen after taxis. Yeah, I didn't like that because

1137
00:51:50,280 --> 00:51:52,560
Speaker 1: given how much she used it, I mean it was

1138
00:51:52,800 --> 00:51:55,719
Speaker 1: it felt overly priced. And we actually just got an

1139
00:51:55,760 --> 00:51:58,759
Speaker 1: Apple Watch for my oldest daughter. We put her on

1140
00:51:58,880 --> 00:52:02,000
Speaker 1: a US Mobile plan for six dollars and fifty cents

1141
00:52:02,000 --> 00:52:05,719
Speaker 1: a month. That to me was a good happy medium. Yes,

1142
00:52:05,800 --> 00:52:10,600
Speaker 1: the watch has more capability, but uh, that's where I

1143
00:52:10,640 --> 00:52:14,200
Speaker 1: think parental guidance and controls come in. Well, that's the thing.

1144
00:52:14,280 --> 00:52:15,960
Speaker 1: I think that's the best option. I think for a

1145
00:52:16,000 --> 00:52:18,399
Speaker 1: lot of folks. They've already got an old iPhone laying

1146
00:52:18,400 --> 00:52:20,840
Speaker 1: around the house, and so I would recommend that Patricia

1147
00:52:20,960 --> 00:52:24,080
Speaker 1: just go straight with the old iPhone and reset it

1148
00:52:24,120 --> 00:52:26,520
Speaker 1: to be a kid's phone, and you've got much more

1149
00:52:26,840 --> 00:52:30,799
Speaker 1: ability to block the web, any website, like literally, we've

1150
00:52:30,840 --> 00:52:33,239
Speaker 1: done this on one of the family devices that we

1151
00:52:33,480 --> 00:52:36,719
Speaker 1: allow our kids to use under our roof, but then

1152
00:52:36,760 --> 00:52:39,360
Speaker 1: they don't have the ability to download any apps either,

1153
00:52:39,480 --> 00:52:41,239
Speaker 1: and so that I don't know. I think that one

1154
00:52:41,239 --> 00:52:43,319
Speaker 1: of the benefits here too is that if you're looking

1155
00:52:43,360 --> 00:52:45,759
Speaker 1: at getting one of these dumb you know, like the

1156
00:52:45,800 --> 00:52:48,000
Speaker 1: dumb down phones, and I don't really care what the

1157
00:52:48,000 --> 00:52:50,800
Speaker 1: other kids think. But that being said, if you've got

1158
00:52:50,840 --> 00:52:52,880
Speaker 1: like a fake I don't know what the kids call it,

1159
00:52:52,880 --> 00:52:55,480
Speaker 1: but like a fake device, that's like I think even

1160
00:52:55,520 --> 00:52:58,120
Speaker 1: just having the screen like a color screen, it looks like,

1161
00:52:58,800 --> 00:53:00,800
Speaker 1: I don't know, you're not even given you're not standing

1162
00:53:00,800 --> 00:53:03,759
Speaker 1: out like a sore thumb. Yeah, as opposed to being

1163
00:53:03,800 --> 00:53:07,399
Speaker 1: like on your old, old school looking LCD flip phone. Well,

1164
00:53:07,600 --> 00:53:09,040
Speaker 1: which if that's what you want to do, I am

1165
00:53:09,080 --> 00:53:10,480
Speaker 1: all for that, And it's not like it costs that

1166
00:53:10,520 --> 00:53:12,000
Speaker 1: much more at this point in time, Like a lot

1167
00:53:12,040 --> 00:53:15,040
Speaker 1: of those whether it's an old iPhone or whether it's

1168
00:53:15,080 --> 00:53:16,680
Speaker 1: some sort of Android. A lot of those you've already

1169
00:53:16,719 --> 00:53:19,240
Speaker 1: taken the hit from a depreciation standpoint on the actual device.

1170
00:53:19,680 --> 00:53:21,640
Speaker 1: And then the service you can get for crazy cheap

1171
00:53:21,640 --> 00:53:23,360
Speaker 1: with one of the low cost providers, like the Apple

1172
00:53:23,400 --> 00:53:26,120
Speaker 1: Watch we bought for my daughter because it was many,

1173
00:53:26,120 --> 00:53:29,360
Speaker 1: many generations old. Yeah, it was pretty inexpensive. There you go,

1174
00:53:29,440 --> 00:53:30,880
Speaker 1: and then on top of that, you also have the

1175
00:53:30,920 --> 00:53:33,880
Speaker 1: ability to try out well, maybe we don't even need

1176
00:53:33,920 --> 00:53:36,720
Speaker 1: to buy service, because I know for us, we're thinking

1177
00:53:36,760 --> 00:53:41,600
Speaker 1: about letting our oldest it's at school to get picked

1178
00:53:41,640 --> 00:53:43,600
Speaker 1: up because back in the day, when I needed to

1179
00:53:43,600 --> 00:53:46,520
Speaker 1: get picked up from school, what did I use the payphone?

1180
00:53:47,000 --> 00:53:49,880
Speaker 1: But you're gonna say pager? No, schools don't have payphones

1181
00:53:49,880 --> 00:53:51,719
Speaker 1: in you I'm a little bit older than you, my friend,

1182
00:53:51,760 --> 00:53:53,160
Speaker 1: But do you have a pager for a while? Or

1183
00:53:53,160 --> 00:53:54,919
Speaker 1: I never had a pajor Okay, I skipped the pager

1184
00:53:54,960 --> 00:53:56,560
Speaker 1: and went straight to the cell phone and when I

1185
00:53:56,600 --> 00:53:59,080
Speaker 1: went off to college. But there's no pay phones anywhere,

1186
00:53:59,080 --> 00:54:00,440
Speaker 1: so you can't plunk the co order and there you

1187
00:54:00,440 --> 00:54:02,840
Speaker 1: can even you can't even do one eight hundred collect,

1188
00:54:02,840 --> 00:54:05,319
Speaker 1: which is what I also used to do that. My

1189
00:54:05,360 --> 00:54:09,240
Speaker 1: parents knew that were they to receive a collect request,

1190
00:54:09,560 --> 00:54:12,480
Speaker 1: that it was just time to go get Matt. Yeah yeah, yeah,

1191
00:54:12,520 --> 00:54:14,319
Speaker 1: even if they did not, even if they just hung up.

1192
00:54:15,280 --> 00:54:19,120
Speaker 1: I don't know is that ethically sort of a But

1193
00:54:19,280 --> 00:54:20,520
Speaker 1: what I was going to say though, is that with

1194
00:54:20,640 --> 00:54:22,719
Speaker 1: an old iPhone, you can still use it on Wi

1195
00:54:22,760 --> 00:54:25,200
Speaker 1: Fi and it's in schools have Wi Fi. Our local

1196
00:54:25,880 --> 00:54:28,600
Speaker 1: downtown Little Square jol has public Wi Fi. A lot

1197
00:54:28,600 --> 00:54:31,040
Speaker 1: of the local businesses have Wi Fi, so the ability

1198
00:54:31,080 --> 00:54:33,359
Speaker 1: for them to do a lot of what they need

1199
00:54:33,400 --> 00:54:36,200
Speaker 1: to do in order to text, in order to FaceTime,

1200
00:54:36,640 --> 00:54:39,880
Speaker 1: you can do that without hardly even getting serviced, especially

1201
00:54:39,920 --> 00:54:42,920
Speaker 1: if they're in sort of a confine, like just an

1202
00:54:43,080 --> 00:54:45,880
Speaker 1: area where you know that they're going to be. But

1203
00:54:45,920 --> 00:54:50,680
Speaker 1: then even even beyond that, the newer phones have GPS

1204
00:54:50,719 --> 00:54:52,680
Speaker 1: built into the actual device to where you don't need

1205
00:54:52,760 --> 00:54:55,759
Speaker 1: to be on Wi Fi or cellular data like your phone.

1206
00:54:55,760 --> 00:54:57,759
Speaker 1: You got the fourteen, right, Yeah, so I think it

1207
00:54:57,760 --> 00:55:00,399
Speaker 1: was starting with the fourteen. The GPS is built into

1208
00:55:00,440 --> 00:55:02,439
Speaker 1: the actual device. You have to set it up ahead

1209
00:55:02,440 --> 00:55:05,400
Speaker 1: of time, but that's pretty stink and cool, and it

1210
00:55:05,480 --> 00:55:08,279
Speaker 1: almost renders service that you need to pay on a

1211
00:55:08,280 --> 00:55:10,799
Speaker 1: monthly basis obsolete. But if you want real service and

1212
00:55:10,840 --> 00:55:13,400
Speaker 1: you want your child to be able to call or

1213
00:55:13,480 --> 00:55:17,160
Speaker 1: text from anywhere, I would say US Mobile has essentially

1214
00:55:17,360 --> 00:55:19,560
Speaker 1: something that equates to eight dollars a month prepaid if

1215
00:55:19,560 --> 00:55:22,480
Speaker 1: you pay for an entire year. And if you want

1216
00:55:22,520 --> 00:55:24,920
Speaker 1: something even cheaper than that, and you want zero data,

1217
00:55:24,960 --> 00:55:26,759
Speaker 1: like you don't even want any data to come with

1218
00:55:26,760 --> 00:55:29,160
Speaker 1: the plan because you think that'll be a temptation, then

1219
00:55:29,239 --> 00:55:32,320
Speaker 1: tell O Mobile has a good option one hundred minutes

1220
00:55:32,560 --> 00:55:35,879
Speaker 1: talk and unlimited text for five bucks a month. So

1221
00:55:35,960 --> 00:55:39,440
Speaker 1: those are two really good options. Affordable. Yeah, So if

1222
00:55:39,440 --> 00:55:40,920
Speaker 1: you do go with the flip phone because that you're

1223
00:55:40,960 --> 00:55:45,680
Speaker 1: really you're anti screen and which I totally get. I

1224
00:55:45,719 --> 00:55:49,000
Speaker 1: am not mad about that, But you want the cheapest

1225
00:55:49,120 --> 00:55:52,520
Speaker 1: possible service, I think Tello might qualify for kind of

1226
00:55:52,560 --> 00:55:54,759
Speaker 1: the absolute bare minimum. Just don't overpay for one of

1227
00:55:54,800 --> 00:55:58,600
Speaker 1: those light phones, you know, those super sweet looking minimalists,

1228
00:55:59,360 --> 00:56:01,160
Speaker 1: and it's just like the ink and they cost just

1229
00:56:01,200 --> 00:56:03,560
Speaker 1: as much as like a nice new phone. They cost

1230
00:56:03,680 --> 00:56:05,719
Speaker 1: like as much as iPhones. Dude. Yeah, like the old

1231
00:56:05,960 --> 00:56:07,840
Speaker 1: the old model. I looked it up. Three hundred bucks

1232
00:56:07,840 --> 00:56:09,640
Speaker 1: for the old model the new one that they just released,

1233
00:56:09,640 --> 00:56:12,840
Speaker 1: which I think they're pre order now, seven hundred dollars.

1234
00:56:12,840 --> 00:56:14,279
Speaker 1: You and I talked about this a few months ago

1235
00:56:14,280 --> 00:56:16,120
Speaker 1: because I remember seeing that and I was like, I can't,

1236
00:56:16,520 --> 00:56:18,520
Speaker 1: no way, I saw it. I saw it again and

1237
00:56:18,520 --> 00:56:21,120
Speaker 1: I was just dumbfounded. I was just shocked. But I

1238
00:56:21,160 --> 00:56:23,400
Speaker 1: think for especially some adults who have the money, and

1239
00:56:23,400 --> 00:56:24,640
Speaker 1: they're just like, no, no, no, I need to be

1240
00:56:24,680 --> 00:56:28,279
Speaker 1: able to I need a hard barrier between all the

1241
00:56:28,320 --> 00:56:30,400
Speaker 1: other things that are out there, kind of the sirens

1242
00:56:30,440 --> 00:56:35,000
Speaker 1: call of the world and notifications and all that's. That's

1243
00:56:35,000 --> 00:56:36,719
Speaker 1: certainly a clear way to to step away from all that.

1244
00:56:36,800 --> 00:56:38,080
Speaker 1: It sounds like in a lot of ways, that's what

1245
00:56:38,120 --> 00:56:40,200
Speaker 1: Patricia is trying to prevent for her child, and I

1246
00:56:40,360 --> 00:56:42,880
Speaker 1: just do it affordably, though. Yeah. I just appreciate that

1247
00:56:42,960 --> 00:56:45,680
Speaker 1: level of thoughtfulness because I want to have the same

1248
00:56:45,719 --> 00:56:48,240
Speaker 1: with my kids, because I see it in the adults

1249
00:56:48,239 --> 00:56:51,040
Speaker 1: around me, just inability to put their phone down. Absolutely.

1250
00:56:51,040 --> 00:56:53,279
Speaker 1: All right, let's get to the beer. You and I

1251
00:56:53,760 --> 00:56:57,080
Speaker 1: we enjoyed a Cordial, which is a saison a beer

1252
00:56:57,160 --> 00:57:02,280
Speaker 1: here by Burial. I have never had Essayson by Burial before.

1253
00:57:02,320 --> 00:57:06,719
Speaker 1: It's almost always brutally beautiful IPAs or insane stouts. Yeah

1254
00:57:06,760 --> 00:57:09,320
Speaker 1: most of the time. But yeah, I definitely enjoyed this,

1255
00:57:09,360 --> 00:57:12,480
Speaker 1: which you think. Yeah, I wrote down three adjectives gentle, floral,

1256
00:57:12,560 --> 00:57:16,680
Speaker 1: and biscuity skiddy. Yeah it was very golden. Yeah, it

1257
00:57:16,960 --> 00:57:18,680
Speaker 1: kind of almost drinks like a golden ail. That's that's

1258
00:57:18,720 --> 00:57:21,840
Speaker 1: what kept coming to my mind with the tiniest bit

1259
00:57:21,840 --> 00:57:24,280
Speaker 1: of funk there as I was I was tasting it,

1260
00:57:24,320 --> 00:57:27,160
Speaker 1: but really good, really delicious. I do prefer the funkier

1261
00:57:27,200 --> 00:57:30,040
Speaker 1: Seyson's like it as you put a lot of funk

1262
00:57:30,080 --> 00:57:32,640
Speaker 1: in it, and I'm gonna be more interested. But I

1263
00:57:32,680 --> 00:57:35,920
Speaker 1: still enjoyed this as just kind of nice, laid back beer,

1264
00:57:36,040 --> 00:57:38,600
Speaker 1: golden and clear, super delicious. Glad you know I got

1265
00:57:38,600 --> 00:57:40,880
Speaker 1: to enjoy it today. But that's gonna be it for

1266
00:57:40,880 --> 00:57:42,680
Speaker 1: this episode. You can find our show notes up on

1267
00:57:42,720 --> 00:57:45,800
Speaker 1: the website at howtomoney dot com. That's gonna be it.

1268
00:57:45,800 --> 00:57:49,600
Speaker 1: So until next time, Best Friends Out, Best Friends Out.