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

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

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Speaker 2: You know, a buddy, it's Monday, which means it's everyone's favorite.

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Speaker 3: Had a money episode of the week? Do you think

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Speaker 3: it's everyone's favorite? Actually, I don't know, you said it.

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Speaker 1: Should we take a poll we should.

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Speaker 2: On the on the newsletter and see which episode if

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Speaker 2: we If you only had to listen to one episode

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Speaker 2: for the rest of your life, which one would it.

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Speaker 3: Be if you only got to not had to.

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Speaker 2: Oh yeah, we wouldn't make you listen, of course. But

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Speaker 2: the problem with polls or surveys is that they're self selecting.

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Speaker 2: So I'm not I'm actually not a huge fan of

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Speaker 2: surveys and polls. But maybe maybe we'll do that all right,

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Speaker 2: But we do, in fact have listener questions to get to.

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Speaker 2: During this episode, buddy listener is wondering if, through some

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Speaker 2: sort of cost benefit analysis that she can run on

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Speaker 2: home security system. She wants to know if there is

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Speaker 2: an easy way to decide whether or not this is

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Speaker 2: something she should spend some money on. Another listener is

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Speaker 2: wondering if there are any advantages of financing a car.

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Speaker 2: Are there any pros or is it just cons when

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Speaker 2: it comes to paying interest on a vehicle? And another

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Speaker 2: listener is wondering about five twenty nine accounts and the

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Speaker 2: kind of impact that it could have on his kid's

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Speaker 2: financial aid. He's wanted to make sure he's setting his

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Speaker 2: kids up right for the future. We'll get to those

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Speaker 2: and more during today's episode.

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Speaker 1: Sounds like a nice variety, Matt on today, nice a

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Speaker 1: nice spread. Yeah, okay, But before we get to listener questions,

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Speaker 1: A friend recently told me about going to a timeshare presentation. Matt,

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Speaker 1: you've done this in the past.

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Speaker 3: I indeed, I've never.

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Speaker 1: Done one of these because I don't trust myself.

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Speaker 3: Here missing not on a good time, Joel.

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Speaker 1: I'm the kind of guy who's like, wait, does Ie

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Speaker 1: get say that again?

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Speaker 3: You would not?

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Speaker 2: Are you really concerned that you might get swayed by

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Speaker 2: this new talking of whoever's up there presenting.

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Speaker 1: I am maybe more malleable than you are, but I

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Speaker 1: don't know. I would not be as I would not

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Speaker 1: go by into a time.

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Speaker 3: Share, that's for sure.

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Speaker 2: I'm assuming he was going for whatever prize that they

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Speaker 2: were giving.

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Speaker 3: At the end of this talk, Well, the.

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Speaker 1: Big prize was a much discount of trip. So he

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Speaker 1: went to San Diego with a couple of his brothers,

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Speaker 1: kind of a reunion tour. And he told me he

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Speaker 1: paid one hundred and ninety nine bucks for three nights

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Speaker 1: and then included one hundred dollars resort credit. He's in

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Speaker 1: San Diego staying at this nice little spot with like

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Speaker 1: a pool, palm trees. Sounds pretty lovely.

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Speaker 3: How long was the presentation?

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Speaker 1: I think it was like two hours, okay, ye, which

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Speaker 1: is a long time to sit there.

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Speaker 2: Yes, especially if you're like meeting up with the family

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Speaker 2: and it cuts I'm assuming it's eating into everybody's time,

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Speaker 2: I think, so, okay, yeah, this is almost like an

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Speaker 2: undercover frugal or cheap?

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Speaker 3: Yeah? Sure, yea, what do you think?

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Speaker 4: Yeah?

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Speaker 3: That means like, I you're like a cheap move to

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Speaker 3: you or is this totally frugal? I don't know.

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Speaker 1: I think I think so much depends on like where

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Speaker 1: you're at. Like I wouldn't want to do this even

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Speaker 1: if it meant saving a few hundred bucks on my vacation,

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Speaker 1: but I've also never done it, so a part of

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Speaker 1: me kind of wants to see what the what it's

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Speaker 1: actually feels like to sit in a timeshare pitch.

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Speaker 2: But was able to sit there with like some Google

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Speaker 2: or Facebook meta glasses on and watch a movie.

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Speaker 3: That would be awesome the whole time.

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Speaker 1: Because then, I mean, that's the problem, is like not

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Speaker 1: wasting time in the same way.

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Speaker 2: Yes, Like how do you want to It's less about

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Speaker 2: the money and more about well, I would just rather

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Speaker 2: spend my time doing something else, right, Like, I was

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Speaker 2: thinking about this.

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Speaker 1: Actually, the only way you get the vacation. Let's say

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Speaker 1: you're like, listen, if I that's the only way we're

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Speaker 1: gonna get these three days in San Diego. So if

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Speaker 1: we go for a hundred bucks for suspend a eight hundred.

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Speaker 2: But I know this friend and he's got some money,

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Speaker 2: like he's not completely broke. I guess like it would

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Speaker 2: make sense if you, let's say you just got laid

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Speaker 2: off from your job and you got six months to

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Speaker 2: just kind of loaf around figure out what you want

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Speaker 2: to do next. You're looking to cut expenses like crazy,

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Speaker 2: and you're like, why not do this as opposed to

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Speaker 2: you know, being gamefully employed and having enough money on

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Speaker 2: the side. Yeah, I was thinking about this because this

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Speaker 2: past weekend, Kate and I spent a lot of time

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Speaker 2: working in the yard, and I remember thinking, man, why

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Speaker 2: are we not paying somebody to do this backbreaking labor,

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Speaker 2: Like like I've got the pick axe out and I'm

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Speaker 2: like ripping up roots, destroying my back or trying not

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Speaker 2: to destroy my back. But at the end of the day,

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Speaker 2: like literally, I told I was telling chaos just like man,

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Speaker 2: like that was a ton of fun. The ability for

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Speaker 2: us to work side by side doing this thing together.

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Speaker 2: It was hard work, but we got to see the

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Speaker 2: result of our labor. And there's just all these other

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Speaker 2: sort of benefits that you gain from doing something like that. Yeah,

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Speaker 2: when normally, if you're just looking at it from just

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Speaker 2: a financial standpoint, you would say that's not worth it

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Speaker 2: at all.

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Speaker 1: I could pay someone this in such amount an hour,

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Speaker 1: why wouldn't I pay so I could go do some

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Speaker 1: extra work and get paid. But there's all these other

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Speaker 1: intangible benefits that you receive from doing something like that

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Speaker 1: that I think are worth thinking through not just looking

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Speaker 1: at the financial menage. Y. No, I agree, And I

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Speaker 1: think I guess the case in which it would be

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Speaker 1: a really really cheap move and not a frugal move

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Speaker 1: is if you are prone to a sales pills and

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Speaker 1: you're like and you're like, look, I'm gonna say five

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Speaker 1: hundred bucks on this vacation, and I'm going to get

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Speaker 1: to go to San Diego for ninety nine bucks. And

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Speaker 1: then you did sign up for the time share, that

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Speaker 1: would be the worst of all scenarios.

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Speaker 3: You just sign up for paying five hundred bucks.

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Speaker 1: A year the rest of your life or even more right, yeah, well, yeah,

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Speaker 1: five hundred bucks a year. Not to mention probably the

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Speaker 1: ten or fifteen thousand dollars or whatever it costs actually

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Speaker 1: by the time share upfront two, So be careful time

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Speaker 1: shares out there, folks. All right, let's mention the beer

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Speaker 1: we're having on this episode, Matt. This is called Lizard King.

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Speaker 1: It's an IPA by Pipeworks Browing. We'll give our thoughts

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Speaker 1: on this one at the end of the episode.

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Speaker 2: Not an ipa, a pale ale and phone. It's a payloaf,

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Speaker 2: which is very related to it's like an I life.

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Speaker 3: Yeah, exactly, all.

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Speaker 1: Right, And if, by the way, if you have a

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Speaker 1: question for us, a money question, we'd love to hear it.

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Speaker 1: And we are giving out pairs of how to money socks.

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Speaker 1: If we feature your question before the end of the year,

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Speaker 1: the lovely, the glorious, the most comfortable, how to money socks.

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Speaker 1: Just submit your money question, send it to us via

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Speaker 1: email recorded on the voice memo app of your phone.

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Speaker 1: If you want the full directions, just go to how

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Speaker 1: tomoney dot com slash ask. Let's get to a question

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Speaker 1: about buying a new car, but the listener who's asking

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Speaker 1: the question is actually asking on half of someone else.

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Speaker 5: Hey, guys, this is Becky and Madison, Wisconsin. My in

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Speaker 5: laws right now need to buy a new car because

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Speaker 5: the engine died in theirs. They know exactly what they

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Speaker 5: want to buy. It's a used minivan. They know the

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Speaker 5: miles and what to spend, but they want to put

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Speaker 5: money down and then finance the rest. I tried to

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Speaker 5: talk to them about just paying cash because they have

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Speaker 5: the money set aside in a high yeled savings account.

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Speaker 5: I tried to explain that because they would be paying

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Speaker 5: a higher rate if they finance, it's dumb not to

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Speaker 5: just pay for it because they're earning five percent in

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Speaker 5: their savings. They did not understand this concept. Is there

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Speaker 5: a way that I could more simply explain this concept

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Speaker 5: to them? Any help? Would be appreciated. Thank you guys.

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Speaker 2: So, Becky, have you considered that your in laws might

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Speaker 2: be lying to you because we don't get it? I

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Speaker 2: mean honest, Like I say that like half in jest,

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Speaker 2: but I think there's a chance that that could actually

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Speaker 2: be they care whe.

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Speaker 3: I mean, maybe they're not being fully truthful.

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Speaker 2: Like Becky's the one that listens to the personal finance

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Speaker 2: and maybe they're thinking they feel the pressure and she's like, hey,

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Speaker 2: you're not gonna you're not gonna finance that car. You're

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Speaker 2: gonna pay for that in cash, right, And they're.

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Speaker 3: Like, oh, oh yeah, duh, of course we're gonna do that.

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Speaker 2: I'm just saying maybe there's a slight chance that there's

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Speaker 2: a little bit of like self protection okay going on,

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Speaker 2: and maybe they have appeared to be in a better

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Speaker 2: financial position than they currently are. That could be true too,

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Speaker 2: you know, Yeah, I don't know. I'm just doing that

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Speaker 2: out there. That is a good point. I'm not saying

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Speaker 2: that they would do that to be deceitful on.

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Speaker 1: Purpose, yeah, or like a malicious sort of but there's

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Speaker 1: like some shame if you if you feel like you

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Speaker 1: haven't handled finance as well and you're right, Matt. Maybe

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Speaker 1: maybe they don't have as much cash as Becky thinks

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Speaker 1: on hand, and so they're they're saying, no, we're gonna

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Speaker 1: go ahead and finance it anyway. Not because you're not

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Speaker 1: making a good point, Becky, not because you're not right,

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Speaker 1: and they don't understand that because they don't actually have

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Speaker 1: the money to buy the car and cash.

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Speaker 3: Maybe we don't want to tell you the full truth. Yeah,

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Speaker 3: I guess.

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Speaker 2: I mean I say that jokingly, but maybe that in

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Speaker 2: the back of your mind, because I think that could

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Speaker 2: help you to approach the conversation a little more delicately,

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Speaker 2: as opposed to like the Dave Ramsey way where he's

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Speaker 2: just like reving your face in it.

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Speaker 3: Like, look what you've done? What do you think? And

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Speaker 3: this is so dumb? I know.

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Speaker 1: It might tax the approach that some people take with

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Speaker 1: their dogs who are trying to train.

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Speaker 3: Right exactly.

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Speaker 2: It might allow you just to kind of like pull

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Speaker 2: back a little bit and approach this conversation.

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Speaker 3: Yeah, just into a little more nuanced Yeah.

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Speaker 1: So maybe they're trust like not lying, but just kind

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Speaker 1: of not being one hundred percent truth because they don't

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Speaker 1: want to.

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Speaker 3: They don't want to confess there you go right.

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Speaker 1: Also, by the way, Becky said they're going to buy

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Speaker 1: a minivan, which I love, and maybe that's yeah, Becky's

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Speaker 1: got kids or they've got grandkids that they're toting around.

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Speaker 1: Minivans still so underrated, and they don't even have to

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Speaker 1: go all Mark Zuckerberg and get the Porsche.

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Speaker 3: You know, Minivans for.

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Speaker 1: The custom Carrera or whatever it was, the regular, normal

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Speaker 1: ones that made by the major brands are plenty good

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Speaker 1: for us.

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Speaker 3: We obviously are.

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Speaker 2: Biased because not only Joel do you, You and I

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Speaker 2: have the exact same minivans, separated only by one year. Yep,

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Speaker 2: I realized go into We went to a friends this weekend,

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Speaker 2: our families with some other families, and there is another

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Speaker 2: Gray Honda Odyssey, so many in the driveway. And then

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Speaker 2: we got to thinking about it. We've got so many

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Speaker 2: friends with a generic family vehicle, the Gray Honda.

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Speaker 1: Audience, just within a few years of each other. It's

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Speaker 1: such a great vehicle.

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Speaker 2: We're all in the know, and we're trying to let

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Speaker 2: everyone else out there know that you need to be

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Speaker 2: in the know as well.

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Speaker 1: Make minivans cool again.

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Speaker 3: I'm for that.

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Speaker 1: I'm doing my best trying to hear a minivan influencer,

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Speaker 1: and also just financial conversations with families. They can be awkward,

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Speaker 1: they can be fraught with peril. How they how they

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Speaker 1: go this past Thanksgiving?

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Speaker 3: Right? Right? Exactly? Yeah, dive into these kind of topics.

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Speaker 1: Probably right after the fun political discussion they start talking

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Speaker 1: about bank account balances. But truly, like so much of

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Speaker 1: the time, our our loved ones don't want to hear

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Speaker 1: our money advice. So how do you get something across?

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Speaker 1: Maybe when when you have an idea or you're willing

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Speaker 1: to have that discussion and they're less interested. And I

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Speaker 1: think the suggestion I have for Becky is to start

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Speaker 1: by being more curious, like ask questions. You know, why

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Speaker 1: is it that you feel comfortable taking on debt for

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Speaker 1: this new car. That's a good question to start with,

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Speaker 1: and you might be surprised at the answer, just being

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Speaker 1: curious and asking questions instead of telling them how you.

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Speaker 3: Would do it. That's true.

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Speaker 2: It's a better way to instead of just like shoving

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Speaker 2: invitation started, instead of shoving it down their throat. Yeah,

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Speaker 2: it might not be about like loving debt. It could

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Speaker 2: be more about having just meaningful savings on hand enough

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Speaker 2: to have some buffer to lean back on. We're not

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Speaker 2: saying that this is the most financially savvy way of

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Speaker 2: looking at it, but yeah, I think this is also understandable.

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Speaker 2: So yeah, instead of leaning in the like what are

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Speaker 2: you doing in direction, ask them like, why are they

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Speaker 2: keen to take on alone when they let's assume the

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Speaker 2: best here that they do actually have the cash on

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Speaker 2: hand to pay for the vehicle, Because then I think

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Speaker 2: that could you're peeling back layers of an onion, right, Yeah,

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Speaker 2: that could give you more insight as to what it

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Speaker 2: is that they're thinking and what it is that they're feeling.

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Speaker 1: Exactly exactly and feeling matt because feelings drive a lot

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Speaker 1: of this, and sometimes those feelings aren't even wrong. You

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Speaker 1: can speak to them and you can maybe alleviate some

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Speaker 1: of those feelings during that discussion. But I think you're

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Speaker 1: right peeling back some of those those layers and hearing

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Speaker 1: some of those feelings will help you figure out well

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Speaker 1: how to continue to pursue that conversation. I think without

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Speaker 1: hearing their side, you are just kind of pushing your

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Speaker 1: own views. That's rarely the way to win an argument.

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Speaker 1: Most people, even if they realize they're wrong, they digging

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Speaker 1: their heels. They just get annoyed and they say, I'm

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Speaker 1: just gonna do it my way, and I'm going to

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Speaker 1: tune you out. I think the I know better approach

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Speaker 1: It can work potentially, but it can also lead to

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Speaker 1: hard feelings or worse, and it can cause the people

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Speaker 1: you love just to kind of tune you out on

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Speaker 1: this topic. So and I don't even not that that

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Speaker 1: you're taking this route, Becky, but just kind of our

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Speaker 1: two cents here. So ask questions to get them talking.

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Speaker 1: Try to empathize with their perspective, even if you don't

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Speaker 1: agree with the route they're taking. And you know, you

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Speaker 1: might be tipped off to elements of their financial past

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Speaker 1: that you weren't privy to, and you might that might

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Speaker 1: give you some insight about where they're coming from too,

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Speaker 1: could be something that happened years ago that you didn't

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Speaker 1: know existed in our financial past. And just saying I

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Speaker 1: don't know this actually makes me uncomfortable because of this

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Speaker 1: and this and this, and they might reveal a few

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Speaker 1: things that maybe make this decision make a little more

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Speaker 1: sense in your mind, even if it's not like the

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Speaker 1: most optimized financial decision out there.

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Speaker 2: Sure, yeah, because like when you are looking at the numbers,

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Speaker 2: like you are one hundred percent in the right, Like

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Speaker 2: the average rate on a used vehicle is something like

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Speaker 2: twelve percent right now. And maybe they've got like the

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Speaker 2: absolute best credit. Maybe they can score like an eight

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Speaker 2: to nine percent loan from their local credit union and

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Speaker 2: that is better, but it's still not superior to paying

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Speaker 2: cash and interest rates on savings. They are getting worse

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Speaker 2: by the month, it seems. But when it comes to

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Speaker 2: car loans, we're with you. We are for sure out

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Speaker 2: of the era of ultra low interest rates.

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Speaker 3: So I don't know.

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Speaker 2: Yeah, maybe they haven't borrowed, Maybe they haven't taken out

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Speaker 2: a loan on a vehicle since like back in the

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Speaker 2: you know, the twenty teens. Maybe they aren't fully aware

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Speaker 2: of the fact that car interest rates have shot up.

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Speaker 3: But I do think the.

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Speaker 2: Questions you ask will hopefully provoke that curiosity. It's just

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Speaker 2: confusing because you said too that they're earning five percent

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Speaker 2: in their savings, which means that.

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Speaker 3: Man, you're smart.

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Speaker 2: Yes, like they are financially savvy, which is why I

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Speaker 2: feel like that are.

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Speaker 3: They're not the Wells Fargo or Bank of America.

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Speaker 2: If that were to be the case, I would maybe

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Speaker 2: put them more in the category of okay, they're not

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Speaker 2: just aware of all the facts.

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Speaker 3: But I don't know.

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Speaker 2: I think asking the questions makes the most sense because

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Speaker 2: I think they are aware of the facts. They seem

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Speaker 2: pretty financially savvy, and so figure out what it is

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Speaker 2: that's causing them to go back to taking out a loan.

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Speaker 2: Maybe just the fact that it's a giant chunk of money.

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Speaker 2: Maybe emotionally it's going to be difficult for them to

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Speaker 2: part themselves with that money, which case cheaper.

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Speaker 3: Older, used many van might make sense. There you go,

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Speaker 3: But I don't know.

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Speaker 1: Maybe they want something new or more reliable, nicer, I mean,

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Speaker 1: and if they have the money for it, then they

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Speaker 1: should be able to pursue that option too. But again, yeah,

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Speaker 1: paying cash would be a smarter move. I think at

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Speaker 1: the end of the day, Matt, this is the tough

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Speaker 1: thing about having conversations about money with people you love.

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Speaker 1: I think it's important and I think we need to

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Speaker 1: kind of work at having better discussions about money with

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Speaker 1: people we love. And this is a perfect opportunity to

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Speaker 1: kind of open those floodgates, if in a positive way,

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Speaker 1: If it's done correctly, but you also have to let

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Speaker 1: people do what they're going to do. There's only so

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Speaker 1: much you can do without overstepping your bounds. I'm glad

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Speaker 1: that you're having the discussion. I think it's worth continuing

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Speaker 1: the discussion and asking more questions. And we are all

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Speaker 1: about attempting to make money a regular topic of conversation

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Speaker 1: amongst friends and family. That is something we are big

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Speaker 1: proponents of. But it's not always easy, and you do

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Speaker 1: have to pick your battles, and you also have to

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Speaker 1: learn when to kind of lay down your sword and.

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Speaker 3: Say battle over.

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Speaker 1: You have a direction you're planning on going in, and

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Speaker 1: I'm not going to convince you otherwise. And honestly, this

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Speaker 1: relationship means more than you doing the thing I find

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Speaker 1: to be the most optimized, right, Like, I think this

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Speaker 1: should also be different, Matt, if we were talking about

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Speaker 1: different stakes. If Becky's in laws we're going to wire

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Speaker 1: one hundred thousand dollars to a scammer them in on Facebook,

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Speaker 1: I think you pull out all the stops, right. Yeah,

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Speaker 1: If they're driving to the Western Union or something like

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Speaker 1: that would be a serious, serious conversation.

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Speaker 3: Yeah. Whereas the used van conversation. It's a little less serious.

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Speaker 1: I would hop in my car and I would like

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Speaker 1: smack the money out of their hands.

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Speaker 3: When I would physically stand in between them and the ATM.

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Speaker 1: You would do whatever it takes. But the I think

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Speaker 1: the stakes are a little bit lower here, and so yeah,

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Speaker 1: if they're making a non optimized financing decision on a car,

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Speaker 1: I'd bring it up. I'd ask some questions, I'd offer

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Speaker 1: a little bit of advice, but I wouldn't lose sleep

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Speaker 1: over their choice either. At least they're still buying a

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Speaker 1: used van and not a new one Way to Go,

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Speaker 1: and they have a high yield sam Us account, so

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Speaker 1: they're not with one of the trashy big banks. They

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Speaker 1: have a level of money IQ, even if they're not

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Speaker 1: doing everything the way you would do it. I think

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Speaker 1: these are smart discussions to have, but also at some

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Speaker 1: point you kind of gotta leave it be.

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Speaker 2: Yeah, And the fact that for them, like she said

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Speaker 2: that the engine died in their previous vehicle makes me

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Speaker 2: think that these are frugal.

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Speaker 3: Yeah. I think this.

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Speaker 2: Not a financial numbers game, and it's completely about emotions

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Speaker 2: and feelings. Potentially, like you said something else, in their

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Speaker 2: past some other hang up that is keeping them from

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Speaker 2: purchasing this.

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Speaker 3: Vehicle with cash. Joe, We've got more to get to.

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Speaker 2: We're gonna hear from a listener who has a couple

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Speaker 2: of great options that she's trying to decide between when

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Speaker 2: it comes to her retirement.

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Speaker 3: We'll get to that and more right after this.

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Speaker 1: All right, Matt, we'll back. Let's get to you a

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Speaker 1: question about saving for college. How can I actually have

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Speaker 1: some partial downsides?

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Speaker 6: Hey man, Joel, This is Brendan from Carmel, Indiana. Carmel

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Speaker 6: is a suburb just north of Indianapolis. It's actually the

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Speaker 6: roundabout capital of the world. Outside of that not so

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Speaker 6: exciting fact, Carmel is actually a great place to raise

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Speaker 6: a family. It has excellent schools, reasonable cost of living.

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Speaker 6: I grew up here and then went to school and

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Speaker 6: worked in Chicago for a while. Recently moved back after

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Speaker 6: I met my wife and we had her son, who's

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Speaker 6: now almost six. Anyways, my question today is regarding five

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Speaker 6: to twenty nine accounts. My wife and I are saving

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Speaker 6: for retirement. However, it's important for me to also be

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Speaker 6: contributing to a five to twenty nine account for our son.

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Speaker 6: This is more on a personal level, as I've had

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Speaker 6: a substantial amount of student loan debt from both undergrad

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Speaker 6: and graduate school. My question is there a certain contribution

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Speaker 6: limit or value that we should be aware of that

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Speaker 6: can significantly affect his face at eligibility. I know our

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Speaker 6: total contributions can affect this, However, I'm not fully clear

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Speaker 6: to what extent this impacts his financial aid. Thank you

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Speaker 6: for taking my question and for all the great work

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Speaker 6: you guys do on the podcast. Let me know if

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Speaker 6: you ever end up in the Indie area. Carmel has

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Speaker 6: some great biking trails with excellent breweries along them.

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Speaker 3: Cheers. Joel Brandon did all the hometown research for US

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Speaker 3: biking and breweries well. And roundabouts so cool? Is that

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Speaker 3: the roundabout capital of the world or the US? Did say?

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Speaker 3: I think you said us?

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Speaker 1: But those are definitely I mean, it can't be the world, right,

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Speaker 1: because the US is so bad when it comes to

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Speaker 1: around us. We love traditional stop lights for some reason,

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Speaker 1: and roundabouts be so much better in so many places.

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Speaker 2: Oh yeah, Oh, I totally agree, especially I don't know.

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Speaker 2: In my mind, I picture Indiana having a lot of space,

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Speaker 2: and don't roundabouts require more room than just like a

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Speaker 2: typical stop life. Yeah, because you have to.

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Speaker 3: It seems like at least you've got to have extra

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Speaker 3: all that room for the circle. Yeah, But like I

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Speaker 3: don't know even.

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Speaker 1: I like roundabouts though, when we went to Ireland together.

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Speaker 1: I mean, roundabouts are everywhere, and they just they make

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Speaker 1: it easier to get around, They keep the flow of

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Speaker 1: traffic going. They are less of an ice hore as

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Speaker 1: than stoplights. They just it makes sense in so many

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Speaker 1: areas though, I guess in major, major intersections you have

439
00:18:33,840 --> 00:18:35,520
Speaker 1: to have stop lights. But we would I guess so

440
00:18:36,160 --> 00:18:37,639
Speaker 1: we would do well to have more roundabouts.

441
00:18:37,640 --> 00:18:40,919
Speaker 2: I will say, driving on the left hand side of

442
00:18:40,920 --> 00:18:43,080
Speaker 2: the road with a stick that you're not normally used

443
00:18:43,119 --> 00:18:47,120
Speaker 2: to while driving through a roundabout, that's a nerve wracking experience.

444
00:18:47,280 --> 00:18:50,000
Speaker 3: Don't put you in the moment. No, Like I I

445
00:18:50,000 --> 00:18:50,960
Speaker 3: was able to focus on the road.

446
00:18:50,960 --> 00:18:53,040
Speaker 1: You know, sometimes you drive and you're like, you get

447
00:18:53,040 --> 00:18:55,240
Speaker 1: to your destination and you feel like, how did I

448
00:18:55,280 --> 00:18:55,640
Speaker 1: get here?

449
00:18:56,600 --> 00:18:57,320
Speaker 3: We've all felt like that.

450
00:18:57,359 --> 00:18:59,320
Speaker 2: It doesn't happen when you're No, that doesn't happen. You're

451
00:18:59,320 --> 00:19:02,520
Speaker 2: on vacation with your other cheap friends. So this is you, Joel,

452
00:19:03,240 --> 00:19:07,080
Speaker 2: and you didn't splurge on the navigation system either true,

453
00:19:08,640 --> 00:19:10,480
Speaker 2: I can't even believe that we arrived like at the

454
00:19:10,480 --> 00:19:13,919
Speaker 2: proper place in what anybody would consider a reasonable amount

455
00:19:13,920 --> 00:19:17,679
Speaker 2: of time, but now we did branded I it sounds

456
00:19:17,680 --> 00:19:19,680
Speaker 2: like you are saving well for your own retirement, which

457
00:19:19,720 --> 00:19:22,399
Speaker 2: I'm glad to hear. You know that that is always

458
00:19:22,440 --> 00:19:25,520
Speaker 2: our first concern when folks are asking about socking away

459
00:19:25,560 --> 00:19:27,840
Speaker 2: some money within a five twenty nine plan for the kids,

460
00:19:27,840 --> 00:19:30,400
Speaker 2: and hopefully you'll be able to help your kids escape

461
00:19:30,720 --> 00:19:34,840
Speaker 2: your student loan debt fate that you've experienced there with

462
00:19:34,880 --> 00:19:37,280
Speaker 2: your It sounds like you've got undergrad as well as

463
00:19:37,280 --> 00:19:39,800
Speaker 2: well as grad school loans. But the other thing that

464
00:19:39,840 --> 00:19:42,440
Speaker 2: we want to highlight here is that we want folks

465
00:19:42,520 --> 00:19:44,840
Speaker 2: to open their own five twenty nine account via the

466
00:19:44,880 --> 00:19:47,720
Speaker 2: state run program because some folks they turned to a

467
00:19:47,760 --> 00:19:50,359
Speaker 2: financial advisor or they turn to a bank for this,

468
00:19:50,680 --> 00:19:53,320
Speaker 2: but that is typically not a great idea because the

469
00:19:53,400 --> 00:19:56,679
Speaker 2: fees can be significantly higher than were you to do

470
00:19:56,720 --> 00:19:59,960
Speaker 2: this yourself. So, for instance, for you you're there in Indiana,

471
00:20:00,200 --> 00:20:02,840
Speaker 2: if you just turn to the Indiana five twenty nine

472
00:20:02,840 --> 00:20:06,359
Speaker 2: direct Savings Plan, you can snag a state income tax

473
00:20:06,400 --> 00:20:09,880
Speaker 2: benefit and if you choose the lowest cost funds, you'll

474
00:20:09,880 --> 00:20:11,840
Speaker 2: be on the right path. You're going to avoid the

475
00:20:11,840 --> 00:20:15,440
Speaker 2: most egregious fees when it comes to the different investment options.

476
00:20:15,680 --> 00:20:17,600
Speaker 2: By the way, when it comes to investments, there are

477
00:20:17,680 --> 00:20:21,000
Speaker 2: aged based or there are US equity based funds that

478
00:20:21,040 --> 00:20:23,760
Speaker 2: you can invest in, depending on your goals, depending on

479
00:20:23,840 --> 00:20:25,840
Speaker 2: the risk tolerance that you're willing to take with those

480
00:20:25,880 --> 00:20:27,520
Speaker 2: investments for your kiddo.

481
00:20:27,720 --> 00:20:30,840
Speaker 1: Yeah, and as far as the impact of the five

482
00:20:30,920 --> 00:20:35,200
Speaker 1: twenty nine account on financial aid, well, yes, there is

483
00:20:35,240 --> 00:20:39,120
Speaker 1: an impact, and it's a somewhat complicated formula. So having

484
00:20:39,160 --> 00:20:41,440
Speaker 1: saved up a decent chunk in the five to twenty

485
00:20:41,520 --> 00:20:45,080
Speaker 1: nine plan, it's not going to be detrimental for merit scholarships.

486
00:20:45,359 --> 00:20:45,479
Speaker 3: Right.

487
00:20:45,560 --> 00:20:48,200
Speaker 1: Let's say your kid is a soccer star in high

488
00:20:48,200 --> 00:20:51,880
Speaker 1: school and or a mathematical genius. Yes, it doesn't matter

489
00:20:51,920 --> 00:20:53,840
Speaker 1: how much money you make am athlete, I believe is

490
00:20:53,880 --> 00:20:55,680
Speaker 1: what they call it, matt But yeah, you might get

491
00:20:55,720 --> 00:20:58,879
Speaker 1: some sort of Your child might get a scholarship like that,

492
00:20:58,920 --> 00:21:01,560
Speaker 1: which is great and doesn't matter how much money you

493
00:21:01,560 --> 00:21:03,200
Speaker 1: have in your five to twenty nine account. Typically those

494
00:21:03,240 --> 00:21:06,920
Speaker 1: scholarships are not impacted right by how successful your child

495
00:21:06,960 --> 00:21:09,680
Speaker 1: is in that endeavor, but it will have a small

496
00:21:09,680 --> 00:21:12,440
Speaker 1: impact when it comes to qualifying for it need based aid.

497
00:21:13,359 --> 00:21:16,040
Speaker 1: And how much of an impact, well, really depends on

498
00:21:16,119 --> 00:21:18,679
Speaker 1: how much is in the account and what other types

499
00:21:18,760 --> 00:21:21,840
Speaker 1: of assets you own. But know that five to twenty

500
00:21:21,960 --> 00:21:25,000
Speaker 1: nine funds they impact the ratio far less than your

501
00:21:25,040 --> 00:21:28,320
Speaker 1: other assets, right, like real estate that you own, stocks

502
00:21:28,320 --> 00:21:31,080
Speaker 1: that you own, your brokerage account. Let's say we're talking

503
00:21:31,160 --> 00:21:34,760
Speaker 1: essentially about a five percent aid reduction for money that's

504
00:21:34,760 --> 00:21:37,080
Speaker 1: held in a five to twenty nine account versus a

505
00:21:37,160 --> 00:21:40,200
Speaker 1: twenty percent aid reduction on money in that bank or

506
00:21:40,200 --> 00:21:44,000
Speaker 1: brokeridge account. So you're going to experience, yes, a little

507
00:21:44,040 --> 00:21:48,080
Speaker 1: bit of discrimination on the needs based aid, but not

508
00:21:48,119 --> 00:21:50,800
Speaker 1: nearly as much as the money that you poured into

509
00:21:51,160 --> 00:21:52,280
Speaker 1: other lucrative assets.

510
00:21:52,359 --> 00:21:52,760
Speaker 3: That's right.

511
00:21:52,800 --> 00:21:55,679
Speaker 2: But there is a loophole that recently came about, and

512
00:21:55,720 --> 00:21:57,760
Speaker 2: I think we touched on this actually not too long ago,

513
00:21:57,840 --> 00:22:00,879
Speaker 2: but the US tax could, of course be the bastion

514
00:22:01,000 --> 00:22:01,719
Speaker 2: of complexity.

515
00:22:01,760 --> 00:22:04,840
Speaker 3: It is without all the loopholes that you can fit

516
00:22:04,880 --> 00:22:06,160
Speaker 3: into your basket. Gotta love them.

517
00:22:06,320 --> 00:22:10,200
Speaker 2: How much impact five twenty nine accounts actually have comes

518
00:22:10,200 --> 00:22:12,520
Speaker 2: down to who owns the account. And so we just

519
00:22:12,560 --> 00:22:15,080
Speaker 2: discussed what would happen if you are the account holder.

520
00:22:15,119 --> 00:22:17,679
Speaker 2: But what if it's your parents. What if it's grandma

521
00:22:17,760 --> 00:22:21,720
Speaker 2: or grandpa who opens the account, Well, then it would

522
00:22:21,720 --> 00:22:24,800
Speaker 2: have zero impact on need based aid.

523
00:22:25,000 --> 00:22:28,359
Speaker 1: This sounds like money laundering, but it's it's legal, legal.

524
00:22:28,280 --> 00:22:29,200
Speaker 3: Money laundering though.

525
00:22:29,280 --> 00:22:31,560
Speaker 2: Yeah, so this is what's known as the grandparent loophole,

526
00:22:32,000 --> 00:22:34,760
Speaker 2: and so it's worth having a conversation with your folks

527
00:22:35,040 --> 00:22:37,159
Speaker 2: about opening a five to twenty nine account with your

528
00:22:37,240 --> 00:22:40,800
Speaker 2: child as the beneficiary, even if you are funding it right,

529
00:22:40,840 --> 00:22:43,600
Speaker 2: and so there's multiple parties that have to cooperate here.

530
00:22:43,640 --> 00:22:45,359
Speaker 1: You essentially have to give the money to your grand

531
00:22:45,440 --> 00:22:47,640
Speaker 1: to your mom or dad, and the grandparent then opens

532
00:22:47,640 --> 00:22:49,600
Speaker 1: a five to twenty nine account with your child as

533
00:22:49,640 --> 00:22:52,520
Speaker 1: the beneficiary. And so yeah, you're kind of I guess,

534
00:22:52,680 --> 00:22:55,159
Speaker 1: gifting the money for the grandparents to stick in there.

535
00:22:55,200 --> 00:22:57,960
Speaker 2: All of a sudden, it's become a family affair. Yeah, yeah,

536
00:22:58,200 --> 00:22:59,840
Speaker 2: but then the very legal family affair.

537
00:22:59,840 --> 00:22:59,959
Speaker 5: Though.

538
00:23:00,080 --> 00:23:03,880
Speaker 1: Then we're talking about the minimal reduction to needs based

539
00:23:03,920 --> 00:23:07,080
Speaker 1: aid based on the calculations that FAFSA makes, we're talking

540
00:23:07,080 --> 00:23:11,399
Speaker 1: about that going away completely. You're able to take the

541
00:23:11,400 --> 00:23:14,639
Speaker 1: five twenty nine penalty away. But man, I think it's

542
00:23:14,680 --> 00:23:18,240
Speaker 1: also worth pointing out here that this could be letting

543
00:23:18,240 --> 00:23:20,440
Speaker 1: the tail wag the dog right that five to twenty

544
00:23:20,560 --> 00:23:23,080
Speaker 1: nine money. It could impact how much free money your

545
00:23:23,160 --> 00:23:25,679
Speaker 1: kid has access to, but it's not going to have

546
00:23:25,760 --> 00:23:27,840
Speaker 1: as big of an impact, like I said, as other

547
00:23:27,880 --> 00:23:30,520
Speaker 1: assets and investments that you own. And you wouldn't want

548
00:23:30,560 --> 00:23:33,639
Speaker 1: to stop, like, for instance, growing your net worth just

549
00:23:33,680 --> 00:23:37,320
Speaker 1: to qualify for more free money from a college or

550
00:23:37,320 --> 00:23:39,879
Speaker 1: something like that, Right, that would be insane to be

551
00:23:39,880 --> 00:23:43,680
Speaker 1: like quitting your job to qualify for additional government benefits

552
00:23:43,840 --> 00:23:45,959
Speaker 1: or be like, listen, I'm gonna quit my day job

553
00:23:46,000 --> 00:23:49,320
Speaker 1: so I can get those sweet subsidies on the healthcare exchange.

554
00:23:49,840 --> 00:23:51,760
Speaker 1: But then you don't have any income coming in, and

555
00:23:52,040 --> 00:23:55,400
Speaker 1: that's a worse that's a bad idea. So if you're

556
00:23:55,440 --> 00:23:58,080
Speaker 1: a consistent investor and savior, and you have been over

557
00:23:58,160 --> 00:24:02,240
Speaker 1: multiple decades, you might find that need based aid is

558
00:24:02,840 --> 00:24:06,600
Speaker 1: that's offered to you is basically minimal or non existent anyway. Right,

559
00:24:07,280 --> 00:24:09,119
Speaker 1: But again, you don't want to throw a wrench in

560
00:24:09,160 --> 00:24:12,280
Speaker 1: your wealth building efforts in hopes of netting more college

561
00:24:12,280 --> 00:24:15,199
Speaker 1: financial aid money, saying you know what, I'm gonna not

562
00:24:15,280 --> 00:24:17,679
Speaker 1: contribute to these accounts or I'm going to invest in

563
00:24:17,720 --> 00:24:19,880
Speaker 1: things that are gonna lose me money so I can

564
00:24:20,160 --> 00:24:22,840
Speaker 1: keep my net worth low, keep that need based financial

565
00:24:22,840 --> 00:24:26,240
Speaker 1: aid ticking upward for my child. Like of course you

566
00:24:26,240 --> 00:24:28,399
Speaker 1: wouldn't do that, So, yeah, you don't want to be

567
00:24:28,480 --> 00:24:29,240
Speaker 1: shortsighted in this.

568
00:24:29,480 --> 00:24:31,080
Speaker 2: You'd be winning a game that you don't want to win.

569
00:24:31,240 --> 00:24:33,480
Speaker 2: It's just like somebody being like, I'm the best tax

570
00:24:33,520 --> 00:24:35,720
Speaker 2: loss harvester. It's like, well, that's not something that you

571
00:24:35,800 --> 00:24:38,040
Speaker 2: necessarily want to have to do, but it's good that

572
00:24:38,080 --> 00:24:38,760
Speaker 2: you can't do it.

573
00:24:38,920 --> 00:24:41,080
Speaker 3: Yeah, but the goals to see your investments go up.

574
00:24:41,080 --> 00:24:43,840
Speaker 2: You don't want to be the number one person experiencing

575
00:24:43,960 --> 00:24:46,760
Speaker 2: losses and then tax harvesting. But yeah, it depends on

576
00:24:46,800 --> 00:24:48,439
Speaker 2: what it is that you want to optimize for and

577
00:24:48,480 --> 00:24:50,199
Speaker 2: what it is that you're trying to maximize. Because if

578
00:24:50,200 --> 00:24:52,560
Speaker 2: you're trying to maximize, like Jill said, the free dollars

579
00:24:52,600 --> 00:24:55,359
Speaker 2: that are coming from college, well yeah, set aside nothing

580
00:24:55,560 --> 00:24:58,240
Speaker 2: and be completely broke. But if you're trying to maxim

581
00:24:58,240 --> 00:25:00,919
Speaker 2: amount poverty, yeah, if you're trying to maximize, though, the

582
00:25:01,680 --> 00:25:05,000
Speaker 2: total amount of funding that can go towards your kids college,

583
00:25:05,040 --> 00:25:07,479
Speaker 2: then yes, you most definitely want to fund a five

584
00:25:07,520 --> 00:25:09,720
Speaker 2: to twenty nine account because overall, that is how you're

585
00:25:09,720 --> 00:25:12,000
Speaker 2: going to see the most benefit. And I would say,

586
00:25:12,040 --> 00:25:13,399
Speaker 2: like one other thing too to keep in mind is

587
00:25:13,400 --> 00:25:16,359
Speaker 2: that this is currently where the rules are, but the

588
00:25:16,400 --> 00:25:19,360
Speaker 2: rules always change. In particular when it comes to five

589
00:25:19,840 --> 00:25:23,960
Speaker 2: nine accounts, there seems to be more leeway when it

590
00:25:24,000 --> 00:25:26,560
Speaker 2: comes to different I don't like rules that are being

591
00:25:26,560 --> 00:25:29,480
Speaker 2: passed as opposed to retirement accounts. Those seem to be

592
00:25:29,520 --> 00:25:31,520
Speaker 2: a bit more locked in as opposed to how it

593
00:25:31,600 --> 00:25:34,960
Speaker 2: is they are qualifying the student Aid index, which is

594
00:25:35,000 --> 00:25:36,920
Speaker 2: like a brand new thing. I mean that is now

595
00:25:37,000 --> 00:25:39,879
Speaker 2: like the gold standard, the expected family contribution. There are

596
00:25:39,960 --> 00:25:42,080
Speaker 2: all these different terms and ways that they're calculating it.

597
00:25:42,080 --> 00:25:44,960
Speaker 1: Well, the fasts have changed significantly right beginning of this year.

598
00:25:44,840 --> 00:25:47,240
Speaker 2: So yeah, and so this is how it's been calculated now.

599
00:25:47,240 --> 00:25:49,160
Speaker 2: But I think there's a good chance that in ten

600
00:25:49,680 --> 00:25:52,280
Speaker 2: fifteen years from now it could be significantly different than

601
00:25:52,320 --> 00:25:53,720
Speaker 2: it is at the moment. And so I think that's

602
00:25:53,720 --> 00:25:55,480
Speaker 2: important to keep in mind that you don't want to

603
00:25:55,520 --> 00:25:58,919
Speaker 2: pin all of your hopes on how it's currently structured

604
00:25:59,160 --> 00:26:02,480
Speaker 2: and Therefore, it makes general sense to save and invest.

605
00:26:02,200 --> 00:26:04,840
Speaker 1: For your future. We were experiencing that with student loan

606
00:26:04,960 --> 00:26:07,200
Speaker 1: details right now, right where you go. It's like it's

607
00:26:07,400 --> 00:26:10,200
Speaker 1: the facts are changing on the ground as we speak,

608
00:26:10,480 --> 00:26:12,480
Speaker 1: as something I'm sure we'll continue to talk about on

609
00:26:12,600 --> 00:26:15,119
Speaker 1: the show. So you have to kind of make the

610
00:26:15,119 --> 00:26:17,159
Speaker 1: best decision you can with the facts on the ground,

611
00:26:17,400 --> 00:26:20,200
Speaker 1: even though it feels like it's shifting sand underneath you.

612
00:26:20,280 --> 00:26:20,440
Speaker 3: JLL.

613
00:26:20,440 --> 00:26:22,480
Speaker 2: One other thing that's worth mentioning too, is that some

614
00:26:22,560 --> 00:26:26,080
Speaker 2: folks who are keen on creating generational wealth, they are

615
00:26:26,200 --> 00:26:30,160
Speaker 2: using five twenty nine plans now, not necessarily to pay

616
00:26:30,160 --> 00:26:32,159
Speaker 2: for college or if they're expecting their kids to go

617
00:26:32,200 --> 00:26:35,680
Speaker 2: to college, but help them to fund a roth ira

618
00:26:36,480 --> 00:26:39,119
Speaker 2: off in the future. Because of the recent changes to

619
00:26:39,160 --> 00:26:41,600
Speaker 2: the flexibility of five point nine accounts.

620
00:26:41,600 --> 00:26:43,919
Speaker 3: It's made them a bit more attractive. It's made them something.

621
00:26:44,119 --> 00:26:46,199
Speaker 2: It's like an item on the menu that used to

622
00:26:46,359 --> 00:26:48,359
Speaker 2: everyone used to always pass over, but then a new

623
00:26:48,400 --> 00:26:49,960
Speaker 2: chef came in and all of a sudden, it's like,

624
00:26:49,960 --> 00:26:52,080
Speaker 2: oh no, those are banging Sam pancakes.

625
00:26:52,080 --> 00:26:54,760
Speaker 3: Now you totally need to check that thing out instead

626
00:26:54,800 --> 00:26:55,920
Speaker 3: of just guy, I don't know why I said that,

627
00:26:56,119 --> 00:26:59,600
Speaker 3: would you say, Sam pancakes? Yeah, why did anyone eat that?

628
00:26:59,640 --> 00:26:59,920
Speaker 3: I don't know.

629
00:27:00,119 --> 00:27:00,760
Speaker 1: You can't elevate that.

630
00:27:01,000 --> 00:27:03,760
Speaker 2: I would not personally order that, but I'm not gonna

631
00:27:03,800 --> 00:27:06,040
Speaker 2: yuck on someone else's young But that's another reason to

632
00:27:06,400 --> 00:27:09,560
Speaker 2: consider five nine accounts as well, Joel. Let's hear from

633
00:27:09,600 --> 00:27:13,120
Speaker 2: another listener who has a question about a potential pension

634
00:27:13,280 --> 00:27:14,960
Speaker 2: that she is considering signing up for.

635
00:27:15,400 --> 00:27:18,080
Speaker 4: Hi, Matt and Joel. My name is Kristen and I'm

636
00:27:18,080 --> 00:27:20,960
Speaker 4: from Albany, New York. I've been listening to the pod

637
00:27:21,000 --> 00:27:23,680
Speaker 4: for a few years and your advice has been very helpful.

638
00:27:24,440 --> 00:27:27,000
Speaker 4: I recently got a job at a Sunni school and

639
00:27:27,040 --> 00:27:30,280
Speaker 4: I am learning how incredible the New York State benefits are.

640
00:27:31,000 --> 00:27:33,880
Speaker 4: I have to choose one of their two retirement plans

641
00:27:33,920 --> 00:27:37,000
Speaker 4: in my first thirty days of employment, and I will

642
00:27:37,040 --> 00:27:40,760
Speaker 4: not ever be able to change it thereafter. The first

643
00:27:40,800 --> 00:27:45,840
Speaker 4: plan is their ers or Employee Retirement System plan. It's

644
00:27:45,880 --> 00:27:48,320
Speaker 4: a pension plan, and the amount I receive will be

645
00:27:48,400 --> 00:27:52,520
Speaker 4: based on my age at retirement, final average salary calculation,

646
00:27:53,080 --> 00:27:55,960
Speaker 4: and years of service. I will need to work here

647
00:27:56,040 --> 00:27:59,360
Speaker 4: for at least five years to draw down on my pension. Someday.

648
00:28:00,160 --> 00:28:04,760
Speaker 4: The other plan is the OERP, or optional retirement program.

649
00:28:05,400 --> 00:28:07,800
Speaker 4: This is more like a typical four O one K

650
00:28:08,480 --> 00:28:12,240
Speaker 4: that I would have through Fidelity. My employer will contribute

651
00:28:12,320 --> 00:28:16,119
Speaker 4: eight percent of my gross biweekly earnings for the first

652
00:28:16,320 --> 00:28:19,840
Speaker 4: seven years I am here, but then their contribution will

653
00:28:19,840 --> 00:28:23,000
Speaker 4: increase to ten percent. I will only need to work

654
00:28:23,040 --> 00:28:26,040
Speaker 4: here for at least one year to keep any contributions

655
00:28:26,080 --> 00:28:30,600
Speaker 4: they make. Regardless of which retirement option I choose, I

656
00:28:30,640 --> 00:28:34,320
Speaker 4: will be required to make a four point five percent contribution.

657
00:28:35,560 --> 00:28:37,800
Speaker 4: I am leaning towards the four oh one K option

658
00:28:38,280 --> 00:28:41,040
Speaker 4: as I'm only twenty nine and I am unsure if

659
00:28:41,080 --> 00:28:43,520
Speaker 4: I will end up moving or changing jobs at some

660
00:28:43,600 --> 00:28:46,720
Speaker 4: point in my future, but I also know that pension

661
00:28:46,720 --> 00:28:49,400
Speaker 4: plans are a rare gem. I'd love to know your

662
00:28:49,400 --> 00:28:51,680
Speaker 4: thoughts and what retirement plan you think is best.

663
00:28:52,040 --> 00:28:56,600
Speaker 1: Thanks Kristin, thank you for the question, and massive congrats

664
00:28:56,680 --> 00:28:57,720
Speaker 1: on the new job.

665
00:28:58,120 --> 00:28:58,320
Speaker 6: Matt.

666
00:28:58,360 --> 00:29:02,000
Speaker 1: It's always nice to have you benefits heading your way, the.

667
00:29:02,280 --> 00:29:04,720
Speaker 2: Especially multiple options laid up before you. It's kind of like,

668
00:29:04,880 --> 00:29:07,800
Speaker 2: not only are I don't know, I like having options.

669
00:29:07,880 --> 00:29:08,400
Speaker 1: It's like a chouse.

670
00:29:08,400 --> 00:29:10,680
Speaker 3: You're on a venture book. Yes, exactly which were the

671
00:29:10,720 --> 00:29:11,680
Speaker 3: best when we were kids.

672
00:29:11,680 --> 00:29:13,080
Speaker 1: You're like, I don't know, do I want to go

673
00:29:13,120 --> 00:29:15,239
Speaker 1: to page sixty eight and when Timmy stuck in a well,

674
00:29:15,280 --> 00:29:16,920
Speaker 1: I don't know whatever it is, but did.

675
00:29:16,840 --> 00:29:18,479
Speaker 3: You ever go back and like you read them?

676
00:29:18,840 --> 00:29:20,160
Speaker 1: I would always go back in what if I made

677
00:29:20,160 --> 00:29:23,040
Speaker 1: a different decision on this one? Though, sadly Kristen cannot

678
00:29:23,080 --> 00:29:23,280
Speaker 1: do that.

679
00:29:23,320 --> 00:29:26,080
Speaker 3: She's like, I am locked in forever for the.

680
00:29:26,040 --> 00:29:29,120
Speaker 1: Rest of my working existence at this place. So the

681
00:29:29,160 --> 00:29:31,840
Speaker 1: stakes are high, right, given the inability for her to

682
00:29:31,920 --> 00:29:34,000
Speaker 1: change her mind on this, So we will do our

683
00:29:34,040 --> 00:29:36,800
Speaker 1: best to offer some helpful advice. Yeah, And the truth is,

684
00:29:36,840 --> 00:29:39,720
Speaker 1: pensions can be great, but they're also rare.

685
00:29:39,880 --> 00:29:40,040
Speaker 3: Well.

686
00:29:40,120 --> 00:29:42,320
Speaker 2: I think that might be a part of why she's

687
00:29:42,440 --> 00:29:47,560
Speaker 2: thinking twice about the pension is that historically pensions from yesteryear,

688
00:29:47,920 --> 00:29:50,800
Speaker 2: it says, old school pensions that are incredibly valuable that

689
00:29:50,840 --> 00:29:51,880
Speaker 2: aren't being offered anymore.

690
00:29:51,960 --> 00:29:53,880
Speaker 1: To talk to one of your grandparents about the pension

691
00:29:53,880 --> 00:29:55,600
Speaker 1: they have, and they will sing its praises and they'll

692
00:29:55,600 --> 00:29:57,520
Speaker 1: talk about how it was the most important part of

693
00:29:57,560 --> 00:29:59,479
Speaker 1: their retirement planning processes.

694
00:29:59,760 --> 00:30:03,040
Speaker 2: Yeah, I mean literally, it's what retirements were completely built

695
00:30:03,080 --> 00:30:05,160
Speaker 2: around for them. Most likely and so because of that,

696
00:30:05,240 --> 00:30:07,400
Speaker 2: I see why that.

697
00:30:07,240 --> 00:30:08,600
Speaker 3: Option would be tempting.

698
00:30:09,240 --> 00:30:11,880
Speaker 2: And I would say, if you were intent in staying

699
00:30:11,960 --> 00:30:15,000
Speaker 2: there at that school or there within the state for

700
00:30:15,200 --> 00:30:18,800
Speaker 2: let's say a couple decades, well I think I might

701
00:30:18,800 --> 00:30:22,360
Speaker 2: be leaning in that direction, right, Like let's say, maybe

702
00:30:22,600 --> 00:30:26,080
Speaker 2: you come from a long line of school principles and

703
00:30:26,120 --> 00:30:28,080
Speaker 2: you're like, oh, yeah, this is going to be my school.

704
00:30:28,120 --> 00:30:29,760
Speaker 2: I'm going to be on a teach here for five

705
00:30:29,760 --> 00:30:31,480
Speaker 2: to ten years, and after that, I'm going to take

706
00:30:31,520 --> 00:30:33,920
Speaker 2: a lead teacher role. Beyond that, I'm going to be principal.

707
00:30:34,040 --> 00:30:37,720
Speaker 2: Maybe your folks own the bakery, the one coffee shop

708
00:30:37,760 --> 00:30:39,400
Speaker 2: there in the middle of the town, and so because

709
00:30:39,400 --> 00:30:41,080
Speaker 2: of that, you're like, I'm never going to leave this place.

710
00:30:41,480 --> 00:30:42,640
Speaker 3: But that is not what you said.

711
00:30:42,960 --> 00:30:45,120
Speaker 2: Like you are pretty young, and it sounds like you

712
00:30:45,120 --> 00:30:47,400
Speaker 2: want to have all the options open to you, and

713
00:30:47,440 --> 00:30:50,160
Speaker 2: so where you to go in the pension direction, that

714
00:30:50,200 --> 00:30:53,640
Speaker 2: would really just kind of hamper your ability to, like

715
00:30:53,760 --> 00:30:55,200
Speaker 2: Joel said, and just choose your own adventure.

716
00:30:55,320 --> 00:30:59,320
Speaker 1: Yeah, you know that song, like doesn't anybody stay in

717
00:30:59,480 --> 00:31:03,160
Speaker 1: one place? An em Well, Kristen talks about.

718
00:31:03,200 --> 00:31:05,480
Speaker 2: Who sings that? No, I don't know, but is this

719
00:31:05,760 --> 00:31:07,280
Speaker 2: a recent song or is this something else? It's the

720
00:31:07,360 --> 00:31:09,800
Speaker 2: HOODI and the Blowfish saying like twenty years ago, think

721
00:31:09,800 --> 00:31:11,240
Speaker 2: it was even before Hooty and the blowf Oh was

722
00:31:11,240 --> 00:31:13,600
Speaker 2: it really? Yeah? Digging real deep.

723
00:31:13,600 --> 00:31:15,440
Speaker 1: But I should know I should know something, but I don't.

724
00:31:15,480 --> 00:31:17,600
Speaker 1: But that just came to my mind because Kristin seems

725
00:31:17,640 --> 00:31:19,840
Speaker 1: like the kind of person who might not be staying

726
00:31:19,920 --> 00:31:22,000
Speaker 1: in the same place. She's got this openness to moving

727
00:31:22,040 --> 00:31:25,840
Speaker 1: somewhere else, which is totally fine. It just has a

728
00:31:25,880 --> 00:31:28,760
Speaker 1: really important impact on the decision she makes here. And

729
00:31:28,800 --> 00:31:32,640
Speaker 1: so the ORP, the Optional Retirement Plan, I think probably

730
00:31:32,680 --> 00:31:36,280
Speaker 1: makes the most sense for her given the parameter she outlined.

731
00:31:36,400 --> 00:31:39,280
Speaker 1: So not only would she have to work there for

732
00:31:39,320 --> 00:31:41,880
Speaker 1: at least five years to have any pension coming to

733
00:31:42,160 --> 00:31:45,320
Speaker 1: at all, she'd have to likely work there for twenty

734
00:31:45,400 --> 00:31:49,120
Speaker 1: years or more to make the pension more effective than

735
00:31:49,200 --> 00:31:52,880
Speaker 1: the ORP. On her behalf. The biggest downside would be

736
00:31:52,920 --> 00:31:54,760
Speaker 1: if she opted to move on after like three or

737
00:31:54,800 --> 00:31:57,080
Speaker 1: four years, because she would have wasted some of those

738
00:31:57,160 --> 00:31:59,680
Speaker 1: prime years and a great match that was available to

739
00:31:59,720 --> 00:32:02,760
Speaker 1: her where she could have been investing and laying her

740
00:32:02,880 --> 00:32:05,640
Speaker 1: financial foundation. But she was like, I think I'm gonna

741
00:32:05,640 --> 00:32:08,200
Speaker 1: go with the pension and then ends up moving on

742
00:32:08,440 --> 00:32:11,719
Speaker 1: in fairly quick order. Well, that to me would be

743
00:32:11,840 --> 00:32:15,200
Speaker 1: the worst possible situation for her from a retirement planning perspective.

744
00:32:15,800 --> 00:32:18,440
Speaker 1: And then the ORP, the optional retirement plan, it has

745
00:32:18,480 --> 00:32:19,600
Speaker 1: a one year investing.

746
00:32:19,320 --> 00:32:22,640
Speaker 3: Period, right, So maximum flexibility.

747
00:32:22,000 --> 00:32:24,240
Speaker 1: Maximum flexibility, She's still going to get to retain stuff

748
00:32:24,240 --> 00:32:25,920
Speaker 1: if she was just there for three or four years.

749
00:32:26,560 --> 00:32:28,920
Speaker 1: Those employer contributions are quite generous and then only get

750
00:32:28,960 --> 00:32:30,200
Speaker 1: stepped up over time as well.

751
00:32:30,320 --> 00:32:32,800
Speaker 3: Yes, so she said they start out at seven percent

752
00:32:32,840 --> 00:32:34,320
Speaker 3: and this graduates up to ten.

753
00:32:34,480 --> 00:32:37,080
Speaker 2: Yeah, that's amazing, It was amazing. I think that's fantastic.

754
00:32:37,240 --> 00:32:40,000
Speaker 2: And I also don't like we're talking about the maximum

755
00:32:40,040 --> 00:32:42,640
Speaker 2: flexibility flexibility that you have, and I think there might

756
00:32:42,680 --> 00:32:45,400
Speaker 2: be some folks who would say, well, people don't need

757
00:32:45,480 --> 00:32:47,440
Speaker 2: all the flexibility in the world. But the fact is

758
00:32:47,920 --> 00:32:49,720
Speaker 2: we live in a world where we are able to

759
00:32:49,760 --> 00:32:51,840
Speaker 2: see all the different options that are laid out there

760
00:32:51,880 --> 00:32:53,280
Speaker 2: before us, right, And so when you think back to

761
00:32:53,320 --> 00:32:56,480
Speaker 2: like our parents' generation, or even like our grandparents generation,

762
00:32:56,960 --> 00:32:59,600
Speaker 2: I think oftentimes they stayed where they were because they

763
00:32:59,640 --> 00:33:02,000
Speaker 2: weren't necessarily aware of what all was out there. But

764
00:33:02,080 --> 00:33:03,840
Speaker 2: because of just the world we live in it, I

765
00:33:03,880 --> 00:33:06,760
Speaker 2: think that flexibility is it's a lot more valuable. It's

766
00:33:06,800 --> 00:33:08,960
Speaker 2: hard even to put a numerical value on that to

767
00:33:09,040 --> 00:33:11,040
Speaker 2: be able to choose how it is that you want

768
00:33:11,080 --> 00:33:11,880
Speaker 2: to live your life.

769
00:33:11,960 --> 00:33:14,720
Speaker 1: And let's be honest, the numerical value could be in

770
00:33:14,760 --> 00:33:17,760
Speaker 1: a substantial pay raise by moving somewhere else. And you're like,

771
00:33:18,120 --> 00:33:21,520
Speaker 1: if you feel tempted to stay somewhere because the pension

772
00:33:21,960 --> 00:33:25,680
Speaker 1: and the financial value to accumulate from having a pension

773
00:33:25,760 --> 00:33:28,280
Speaker 1: years and decades down the road, well you might forego

774
00:33:28,600 --> 00:33:30,640
Speaker 1: doing work you enjoy more that pays a lot more.

775
00:33:30,760 --> 00:33:33,640
Speaker 2: In the interim too, I will say one thing that

776
00:33:33,680 --> 00:33:36,760
Speaker 2: I like the least about the ORB, which is most

777
00:33:36,800 --> 00:33:38,960
Speaker 2: likely here a four toh one A, which is similar

778
00:33:38,960 --> 00:33:40,880
Speaker 2: to a four to one K, is that the investment

779
00:33:40,960 --> 00:33:43,280
Speaker 2: options can be more conservative.

780
00:33:43,800 --> 00:33:45,520
Speaker 3: And for you, Christen, you are in the.

781
00:33:45,520 --> 00:33:47,720
Speaker 2: Phase of your life where you have the ability and

782
00:33:47,800 --> 00:33:50,320
Speaker 2: even the necessity, I would say, of taking on more

783
00:33:50,520 --> 00:33:53,800
Speaker 2: risk in order to build wealth. Volatility like this is

784
00:33:53,840 --> 00:33:56,080
Speaker 2: just the price that we pay for these outsized gains,

785
00:33:56,600 --> 00:33:58,360
Speaker 2: and it's going to be easier to stomach the roller

786
00:33:58,440 --> 00:34:00,920
Speaker 2: coaster ride of the stock market when we are, let's say,

787
00:34:01,280 --> 00:34:04,840
Speaker 2: three four decades away from tapping our account, and so

788
00:34:04,960 --> 00:34:07,440
Speaker 2: the conservative nature of some of the investment options that

789
00:34:07,440 --> 00:34:09,560
Speaker 2: you would have there within the ORP might be the

790
00:34:09,600 --> 00:34:11,920
Speaker 2: only thing that would make me, I guess look into

791
00:34:11,960 --> 00:34:14,279
Speaker 2: the details a little bit more, and I don't see

792
00:34:14,280 --> 00:34:16,919
Speaker 2: what provider you would be with, see what options there

793
00:34:16,960 --> 00:34:17,920
Speaker 2: are at your disposal.

794
00:34:17,960 --> 00:34:19,799
Speaker 1: You know, what sort of funds are you going to

795
00:34:19,800 --> 00:34:24,120
Speaker 1: be able to partake in? And what's the expensory show

796
00:34:24,120 --> 00:34:27,000
Speaker 1: there is there something equivalent to a total stock market

797
00:34:27,000 --> 00:34:29,120
Speaker 1: fund or a SPI fund, or an index fund, or

798
00:34:29,120 --> 00:34:31,759
Speaker 1: even like a target date retirement fund that doesn't have

799
00:34:32,360 --> 00:34:33,879
Speaker 1: outlandish fees associated with.

800
00:34:33,880 --> 00:34:36,320
Speaker 2: As opposed to like a blended fifty to fifty fund,

801
00:34:36,400 --> 00:34:38,760
Speaker 2: which would Man, that would really bum me out, Yeah.

802
00:34:38,640 --> 00:34:40,640
Speaker 1: Because you're just going to miss out on over the

803
00:34:40,719 --> 00:34:43,160
Speaker 1: course of multiple decades some of the gains that would

804
00:34:43,200 --> 00:34:46,920
Speaker 1: really help boost your efforts, right, your retirement savings efforts,

805
00:34:47,080 --> 00:34:49,960
Speaker 1: and what you might gain insecurity, by the way, by

806
00:34:49,960 --> 00:34:52,520
Speaker 1: taking the pension, should you jump through all the hoops

807
00:34:52,520 --> 00:34:55,279
Speaker 1: and stay there essentially your whole working life. I think

808
00:34:55,280 --> 00:34:57,600
Speaker 1: the biggest thing, Matt, you discard the flexibility, Like we've

809
00:34:57,600 --> 00:35:01,560
Speaker 1: talked about right. Pensions are called golden handcuffs for a reason,

810
00:35:02,160 --> 00:35:04,320
Speaker 1: and the longer you stay there, the more you feel

811
00:35:04,360 --> 00:35:07,640
Speaker 1: compelled to stay there because you're so far gone. Even

812
00:35:07,680 --> 00:35:10,480
Speaker 1: if let's say the working conditions are not great, you

813
00:35:10,560 --> 00:35:13,800
Speaker 1: don't love the role that you're in, the financial haircut

814
00:35:13,800 --> 00:35:16,200
Speaker 1: you would take by jumping ship would just be too significant.

815
00:35:16,480 --> 00:35:17,759
Speaker 1: If you don't love the job or you want to

816
00:35:17,800 --> 00:35:19,520
Speaker 1: do something else, you have to you feel like you

817
00:35:19,560 --> 00:35:21,799
Speaker 1: have to stay put that It's like it's more than

818
00:35:21,800 --> 00:35:25,080
Speaker 1: golden handcuffs. It's almost like a concrete block around your feet,

819
00:35:25,120 --> 00:35:26,600
Speaker 1: like you've stepped in it and you just can't move

820
00:35:26,640 --> 00:35:29,239
Speaker 1: anywhere else. And we really don't want that for you.

821
00:35:29,320 --> 00:35:31,680
Speaker 1: We want you to retain that flexibility when it comes

822
00:35:31,719 --> 00:35:34,560
Speaker 1: to earning or enjoying your career in something that you

823
00:35:34,600 --> 00:35:37,239
Speaker 1: love if the place that you're currently at does not

824
00:35:37,400 --> 00:35:40,400
Speaker 1: end up being a place that you see yourself long term.

825
00:35:40,520 --> 00:35:41,960
Speaker 1: So we would just say, based on kind of what

826
00:35:41,960 --> 00:35:44,120
Speaker 1: you said and the way we think about work in

827
00:35:44,160 --> 00:35:46,719
Speaker 1: today's environment, the ORP is likely your best bet. It's

828
00:35:47,160 --> 00:35:50,600
Speaker 1: incredibly generous, and doing that along with other investing on

829
00:35:50,640 --> 00:35:53,319
Speaker 1: the side, like a roth IRA, will ensure that you

830
00:35:53,400 --> 00:35:56,520
Speaker 1: keep your career options open, that you retain career flexibility,

831
00:35:56,520 --> 00:35:59,000
Speaker 1: and that you're still building significant wealth for your future.

832
00:35:59,200 --> 00:36:00,680
Speaker 2: That's right, So, Chris and we hope that gets you

833
00:36:00,719 --> 00:36:03,160
Speaker 2: pointed in the right direction. And Joel, we've got more

834
00:36:03,160 --> 00:36:05,279
Speaker 2: to get you. We're gonna talk about fear and anxiety,

835
00:36:05,880 --> 00:36:09,320
Speaker 2: the money that we will often pay to alleviate those feelings.

836
00:36:09,360 --> 00:36:10,879
Speaker 2: We'll get to that and more right after this.

837
00:36:18,560 --> 00:36:20,440
Speaker 1: All right, Matt, we're back. Now it's time for the

838
00:36:20,440 --> 00:36:23,960
Speaker 1: Facebook Question of the Week. This one comes from Jessica.

839
00:36:24,320 --> 00:36:26,840
Speaker 1: She says, is there a way to assess the cost

840
00:36:27,120 --> 00:36:30,600
Speaker 1: verse benefit of a home security system? Like based on

841
00:36:30,719 --> 00:36:33,360
Speaker 1: crime rates in your neighborhood? Is a security system just

842
00:36:33,400 --> 00:36:36,800
Speaker 1: a money taking scam? First a good investment to prevent

843
00:36:36,840 --> 00:36:39,319
Speaker 1: property loss or expensive home damage from a break in?

844
00:36:39,920 --> 00:36:42,160
Speaker 1: Is it all just a scam praying on fears when

845
00:36:42,200 --> 00:36:45,800
Speaker 1: the chances of break ins are extremely slam Or is

846
00:36:45,840 --> 00:36:46,600
Speaker 1: it actually worth it?

847
00:36:46,760 --> 00:36:46,960
Speaker 3: Yeah?

848
00:36:47,000 --> 00:36:49,319
Speaker 2: I think it's more the former, you know, Joel, Like

849
00:36:49,440 --> 00:36:52,160
Speaker 2: the fact that folks like the companies out there, are

850
00:36:52,239 --> 00:36:55,560
Speaker 2: praying on our desire to protect ourselves from the worst

851
00:36:55,600 --> 00:36:57,560
Speaker 2: of what could happen to well, and that's why in

852
00:36:57,719 --> 00:37:00,640
Speaker 2: a lot of the messaging, it's always your family, we're

853
00:37:00,719 --> 00:37:02,680
Speaker 2: keeping your family safe. If they use stuff like that,

854
00:37:02,719 --> 00:37:04,440
Speaker 2: because when they say in the commercials and it speaks

855
00:37:04,440 --> 00:37:05,279
Speaker 2: to exactly.

856
00:37:04,920 --> 00:37:05,799
Speaker 3: What we want to do.

857
00:37:06,160 --> 00:37:08,560
Speaker 1: But oftentimes they want to charge an armor.

858
00:37:08,400 --> 00:37:09,960
Speaker 3: And a like fear inducing.

859
00:37:10,160 --> 00:37:12,680
Speaker 2: Yeah, so I wouldn't call these companies out there scammers,

860
00:37:12,840 --> 00:37:15,480
Speaker 2: but they will often use their messaging to tap into

861
00:37:15,480 --> 00:37:19,440
Speaker 2: those different anxieties there and make for good reason, because

862
00:37:19,440 --> 00:37:21,719
Speaker 2: that's how they make the sales. And I think what

863
00:37:21,760 --> 00:37:23,640
Speaker 2: they are oftentimes really after or maybe this is the

864
00:37:23,719 --> 00:37:27,000
Speaker 2: older model, but those recurring monthly payments for monitoring, right,

865
00:37:27,000 --> 00:37:30,080
Speaker 2: because if you're paying let's say forty dollars a month, well,

866
00:37:30,080 --> 00:37:31,520
Speaker 2: that's five hundred dollars a year.

867
00:37:31,960 --> 00:37:32,759
Speaker 3: Well and man, if you.

868
00:37:32,760 --> 00:37:35,120
Speaker 2: Were able to avoid that, that's that would represent meaningful

869
00:37:35,160 --> 00:37:38,440
Speaker 2: savings on your part. But we're also talking about more

870
00:37:38,520 --> 00:37:41,320
Speaker 2: than just money. We're talking about how safe you feel.

871
00:37:41,840 --> 00:37:44,799
Speaker 2: And so I was happy to find some numbers and

872
00:37:44,880 --> 00:37:48,640
Speaker 2: so maybe you're able to kind of rest in the data.

873
00:37:48,800 --> 00:37:51,799
Speaker 2: And so I was very surprised to see that back

874
00:37:51,840 --> 00:37:55,480
Speaker 2: in the nineties, for every one hundred thousand homes, there

875
00:37:55,520 --> 00:37:59,160
Speaker 2: were one thousand, two hundred and fifty burglaries reported.

876
00:37:59,320 --> 00:38:01,200
Speaker 3: Okay, sounds like a lot. It does.

877
00:38:01,360 --> 00:38:03,279
Speaker 2: Guess what it is today, You want to guess eight

878
00:38:03,320 --> 00:38:06,480
Speaker 2: hundred and twenty. Dude, so much less than that two

879
00:38:06,520 --> 00:38:08,759
Speaker 2: hundred and fifty. So we went from one two hundred

880
00:38:08,760 --> 00:38:11,040
Speaker 2: fifty to just two hundred and fifty. It's a significant

881
00:38:11,040 --> 00:38:14,040
Speaker 2: accorded home book burglaries per one hundred thousand homes.

882
00:38:14,280 --> 00:38:15,080
Speaker 3: That's amazing.

883
00:38:15,120 --> 00:38:17,080
Speaker 2: I could not believe that stat Like, we have seen

884
00:38:17,320 --> 00:38:21,240
Speaker 2: crime at least, you know, in that regards drop precipitously

885
00:38:21,640 --> 00:38:24,880
Speaker 2: over the past twenty thirty years, especially, so there was

886
00:38:24,920 --> 00:38:28,000
Speaker 2: a plateaued like around like the twenty tens, but then

887
00:38:28,040 --> 00:38:31,480
Speaker 2: we saw a pretty significant drop then as well. Bottom line,

888
00:38:31,560 --> 00:38:35,160
Speaker 2: it's almost as if like home burglaries are just it's

889
00:38:35,160 --> 00:38:37,200
Speaker 2: not like relatable anymore. It's not it's not something that

890
00:38:37,200 --> 00:38:37,960
Speaker 2: happens as much.

891
00:38:37,960 --> 00:38:39,919
Speaker 1: You couldn't make a Christmas movie about it anymore because

892
00:38:39,960 --> 00:38:40,920
Speaker 1: nobody does it right.

893
00:38:41,000 --> 00:38:43,399
Speaker 3: People will be like, this doesn't make any sense. Oh,

894
00:38:43,440 --> 00:38:45,840
Speaker 3: when did home alone come out? Joel? That was the nineties?

895
00:38:46,640 --> 00:38:50,719
Speaker 2: Correlation or causation, that's a good question that maybe they're

896
00:38:50,760 --> 00:38:52,600
Speaker 2: a bunch of bandits who are just like well, I

897
00:38:52,600 --> 00:38:53,719
Speaker 2: don't want that to happen to me.

898
00:38:53,960 --> 00:38:57,040
Speaker 1: A bunch of smart kids over it starts throwing irons

899
00:38:57,040 --> 00:38:59,000
Speaker 1: at my face. Oh, that might be true.

900
00:38:59,040 --> 00:39:01,240
Speaker 2: I was thinking initially of just sharing my own personal

901
00:39:01,280 --> 00:39:04,240
Speaker 2: interpretation of neighborhoods that we've lived in and how they've changed

902
00:39:04,239 --> 00:39:06,279
Speaker 2: over the years, and I thought, well, you can't just

903
00:39:06,440 --> 00:39:09,040
Speaker 2: take you can't take your own experience. But then seeing

904
00:39:09,440 --> 00:39:13,480
Speaker 2: nationwide data, I think, man, that's incredibly encouraging, and that

905
00:39:13,480 --> 00:39:16,799
Speaker 2: would make me feel better about let's say, skipping out

906
00:39:16,920 --> 00:39:18,520
Speaker 2: on say some monitored coverage.

907
00:39:18,600 --> 00:39:19,520
Speaker 3: Yeah, personally, but I.

908
00:39:19,480 --> 00:39:24,080
Speaker 1: Think it's also important to mention that technology has changed

909
00:39:24,160 --> 00:39:26,680
Speaker 1: quite a bit in the space, and it has reduced

910
00:39:26,680 --> 00:39:31,400
Speaker 1: the cost of that's home monitoring for alarms and actually

911
00:39:31,440 --> 00:39:35,560
Speaker 1: the installation of alarm systems as well. Competition is a

912
00:39:35,560 --> 00:39:38,160
Speaker 1: big part of that also, and it's made this just

913
00:39:38,280 --> 00:39:40,760
Speaker 1: less of a money pit where you talked about forty

914
00:39:40,760 --> 00:39:42,880
Speaker 1: bucks a month that I think that was what the

915
00:39:42,880 --> 00:39:44,719
Speaker 1: average person used to pay, and they also had to

916
00:39:44,719 --> 00:39:46,680
Speaker 1: sign a multi year contract, and they had to pay

917
00:39:47,200 --> 00:39:50,720
Speaker 1: for expensive installation of equipment, and so it did become

918
00:39:50,760 --> 00:39:55,320
Speaker 1: this like financially prohibitive investment. I'm looking at ADT, for instance.

919
00:39:55,320 --> 00:39:57,120
Speaker 1: I think they're still around, but they were the worst

920
00:39:57,160 --> 00:39:59,120
Speaker 1: culprit and I think they're trying to continue their business

921
00:39:59,120 --> 00:40:03,480
Speaker 1: model AOL charging people for email service. Right, it's one

922
00:40:03,520 --> 00:40:06,720
Speaker 1: of those things where it continues to exist, but only

923
00:40:06,920 --> 00:40:09,880
Speaker 1: the foolish will continue to go down that path, given

924
00:40:10,200 --> 00:40:12,719
Speaker 1: the proliferation of options that we have. Right, because you

925
00:40:12,719 --> 00:40:16,600
Speaker 1: can actually take DIY your equipment, right, you can take

926
00:40:16,640 --> 00:40:18,200
Speaker 1: it with you to the next home you move to,

927
00:40:18,239 --> 00:40:21,560
Speaker 1: you can avoid contracts completely. Plus, right, having a home

928
00:40:21,560 --> 00:40:24,400
Speaker 1: security system could get you a discount on homeowners insurance.

929
00:40:24,440 --> 00:40:28,040
Speaker 1: I think that is matt the precipitous drop in the

930
00:40:28,040 --> 00:40:30,120
Speaker 1: cost of it, plus the fact that you might get

931
00:40:30,120 --> 00:40:33,080
Speaker 1: a benefit from your homeowner's insurance company, Well, it could

932
00:40:33,239 --> 00:40:35,759
Speaker 1: make this This could make financial sense in addition to

933
00:40:35,800 --> 00:40:39,080
Speaker 1: alleviating some anxiety. So let's say you're paying ten to

934
00:40:39,080 --> 00:40:41,359
Speaker 1: fifteen bucks a month instead of forty, right, and you're

935
00:40:41,360 --> 00:40:43,719
Speaker 1: getting a five or ten dollars a month discount from

936
00:40:43,960 --> 00:40:47,400
Speaker 1: State Farm USA wherever you have your insurance. Well, the

937
00:40:47,440 --> 00:40:49,680
Speaker 1: money part of this equation is now closer to fifty

938
00:40:49,719 --> 00:40:53,360
Speaker 1: bucks a year than five hundred. And it's just all

939
00:40:53,360 --> 00:40:55,200
Speaker 1: about where you turn for service. Though, in order to

940
00:40:55,640 --> 00:40:56,680
Speaker 1: make those numbers work.

941
00:40:56,480 --> 00:40:58,840
Speaker 2: And not just service, but just so you mentioned the equipment,

942
00:40:58,920 --> 00:41:02,200
Speaker 2: so check out ring Whise simply safe. I'm sure these

943
00:41:02,239 --> 00:41:03,880
Speaker 2: are all companies that you've heard of, and whys by

944
00:41:03,920 --> 00:41:06,880
Speaker 2: the way, is wyze uh huh. They've got some really

945
00:41:06,920 --> 00:41:10,000
Speaker 2: affordable cameras that we use and are big fans of.

946
00:41:10,080 --> 00:41:12,759
Speaker 2: But you're paying full price for the equipment upfront, or

947
00:41:12,760 --> 00:41:15,640
Speaker 2: not even full price wait for a sale, which isn't

948
00:41:15,680 --> 00:41:17,640
Speaker 2: really all that expensive to begin with in the grand

949
00:41:17,680 --> 00:41:20,840
Speaker 2: scheme of things, right, Maybe you're just paying like maybe

950
00:41:20,880 --> 00:41:24,640
Speaker 2: in the three digits for a few pieces of equipment,

951
00:41:24,719 --> 00:41:27,440
Speaker 2: But then the monthly monitoring costs can be had for

952
00:41:27,480 --> 00:41:29,200
Speaker 2: as little as three dollars a month, which is a

953
00:41:29,239 --> 00:41:31,919
Speaker 2: far cry from the thirty forty bucks a month old

954
00:41:31,960 --> 00:41:35,480
Speaker 2: school model. And just the fact that the cameras are

955
00:41:35,560 --> 00:41:37,160
Speaker 2: up right like and people.

956
00:41:36,920 --> 00:41:38,560
Speaker 3: See that it's a deterrent in and of it. So

957
00:41:38,680 --> 00:41:39,280
Speaker 3: it's a deterrent.

958
00:41:39,320 --> 00:41:42,000
Speaker 2: And I am much more a fan of things that

959
00:41:42,239 --> 00:41:45,319
Speaker 2: completely deter a burglary from happening, as opposed to being

960
00:41:45,320 --> 00:41:46,759
Speaker 2: able to watch somebody break into your house.

961
00:41:46,840 --> 00:41:47,080
Speaker 3: Yeah.

962
00:41:47,200 --> 00:41:49,920
Speaker 1: Well that's why I have a face a speaker in

963
00:41:49,920 --> 00:41:51,920
Speaker 1: the backyard that makes the sound of a Doberman picture,

964
00:41:52,239 --> 00:41:53,640
Speaker 1: So it just scares people off before they come.

965
00:41:53,680 --> 00:41:56,479
Speaker 3: Mean literally, Like, what do you think about getting big dogs,

966
00:41:56,560 --> 00:41:59,160
Speaker 3: Joel for as a deterrent? I mean, I guess it's

967
00:41:59,200 --> 00:42:00,680
Speaker 3: one way to go. I don't like to get bit

968
00:42:01,040 --> 00:42:02,160
Speaker 3: by dogs, and so.

969
00:42:02,400 --> 00:42:04,399
Speaker 1: I also like, don't don't like to take care of dogs, Matt,

970
00:42:04,440 --> 00:42:05,640
Speaker 1: so I'm gonna avoid that.

971
00:42:05,920 --> 00:42:08,920
Speaker 2: You're more of a cat guy. Well, does that mean

972
00:42:08,920 --> 00:42:13,240
Speaker 2: you have what's that tax plasmo talx or whatever.

973
00:42:13,480 --> 00:42:14,840
Speaker 3: I don't know, toxoplasmosis.

974
00:42:14,960 --> 00:42:17,200
Speaker 2: Yeah, I don't know, but like it's something that happens

975
00:42:17,239 --> 00:42:19,919
Speaker 2: because of being in proximity to cats.

976
00:42:19,920 --> 00:42:21,840
Speaker 1: I'm going to research that right after the right of

977
00:42:21,840 --> 00:42:23,360
Speaker 1: the seres. If I get rid of them, can I

978
00:42:23,360 --> 00:42:24,000
Speaker 1: get rid of it?

979
00:42:24,320 --> 00:42:27,400
Speaker 3: I don't know. Okay, I'm gonna look into this, but

980
00:42:28,719 --> 00:42:30,520
Speaker 3: very much speaking out of out of my depth.

981
00:42:30,560 --> 00:42:33,480
Speaker 1: Okay, Well, just on I think on the note last

982
00:42:33,520 --> 00:42:36,080
Speaker 1: note on the home security system, like like you were saying,

983
00:42:36,120 --> 00:42:38,719
Speaker 1: it's gotten so dang cheap. I think if it does

984
00:42:38,760 --> 00:42:41,680
Speaker 1: alleviate some anxiety and potentially saves you money, like, why

985
00:42:41,760 --> 00:42:44,799
Speaker 1: not consider it at least especially we're talking about three

986
00:42:45,000 --> 00:42:47,440
Speaker 1: five nine dollars a month from monitoring instead of like

987
00:42:47,560 --> 00:42:50,719
Speaker 1: forty or fifty. That just makes it like kind of

988
00:42:50,840 --> 00:42:52,880
Speaker 1: a drop in the bucket of your monthly budget, like

989
00:42:53,000 --> 00:42:56,600
Speaker 1: less than what Netflix charges. Right, But I think kind

990
00:42:56,640 --> 00:42:58,319
Speaker 1: of like when you're talking about Matt, there are other

991
00:42:58,360 --> 00:43:01,839
Speaker 1: ways to kind of prevent potential break ins. We would

992
00:43:01,880 --> 00:43:04,440
Speaker 1: just suggest not forgetting about the really cheap stuff that

993
00:43:04,520 --> 00:43:08,799
Speaker 1: offers real protection, like adding motion detector lights outside or

994
00:43:09,120 --> 00:43:12,040
Speaker 1: reinforcing the door jam with a longer strike plate and

995
00:43:12,400 --> 00:43:15,160
Speaker 1: deeper screws. It is typically when a break in does occur,

996
00:43:15,760 --> 00:43:17,920
Speaker 1: I mean, from what I've read Matt, it seems like

997
00:43:17,920 --> 00:43:20,520
Speaker 1: it's kicking down the front door, and those better strip

998
00:43:20,560 --> 00:43:24,120
Speaker 1: plates and screws can often prevent that from happening, Like

999
00:43:24,200 --> 00:43:26,000
Speaker 1: you give it two kicks and it doesn't go and

1000
00:43:26,040 --> 00:43:27,760
Speaker 1: they move on to the next house exactly.

1001
00:43:27,840 --> 00:43:29,520
Speaker 2: Yeah, they're looking for the lowest hanging free which is

1002
00:43:29,520 --> 00:43:32,440
Speaker 2: also why even Yeah, I don't know, I don't know

1003
00:43:32,480 --> 00:43:34,680
Speaker 2: if people feel about sticking up stickers that say there's

1004
00:43:34,680 --> 00:43:37,879
Speaker 2: an alarm system even if there's not, But it sounds

1005
00:43:37,960 --> 00:43:39,920
Speaker 2: reasonable to me. It really doesn't make sense though that

1006
00:43:39,960 --> 00:43:42,920
Speaker 2: we have seen a decline in home burglars, because as

1007
00:43:42,960 --> 00:43:44,480
Speaker 2: I think through it, like what would somebody want to

1008
00:43:44,520 --> 00:43:46,640
Speaker 2: steal from my house? Like I don't does somebody really

1009
00:43:46,680 --> 00:43:49,040
Speaker 2: want all my old junk that I've got in my place?

1010
00:43:49,080 --> 00:43:49,839
Speaker 2: As opposed to.

1011
00:43:49,960 --> 00:43:50,680
Speaker 3: It makes sense too.

1012
00:43:50,600 --> 00:43:52,920
Speaker 1: That before they'd steal a massive TV and it was

1013
00:43:52,960 --> 00:43:55,080
Speaker 1: worth thousands of dollars, but all the stuff we have

1014
00:43:55,120 --> 00:43:58,800
Speaker 1: in our homes now hundred bucks, so replaceable as opposed

1015
00:43:58,920 --> 00:44:01,160
Speaker 1: and like there's no market for Like, it makes sense

1016
00:44:01,200 --> 00:44:03,360
Speaker 1: that there has been an uptick in like retail theft

1017
00:44:03,680 --> 00:44:05,400
Speaker 1: because oh yeah, you go to a.

1018
00:44:05,400 --> 00:44:09,920
Speaker 2: Pharmacy and snatch and grab a bunch of like bottles

1019
00:44:09,920 --> 00:44:12,719
Speaker 2: of ibuprofen. Guess what, there's a market for brand new,

1020
00:44:12,800 --> 00:44:16,239
Speaker 2: unopened bottles of ibuprofen. And people literally do solos on

1021
00:44:16,320 --> 00:44:19,920
Speaker 2: eBay or even like Amazon stores. That's like they literally

1022
00:44:19,920 --> 00:44:22,680
Speaker 2: traffic stolen goods, and you got to think like a

1023
00:44:22,719 --> 00:44:24,600
Speaker 2: thief jowel in order to beat the thief, I guess.

1024
00:44:25,520 --> 00:44:27,680
Speaker 2: But I'm just encouraged by the fact that we have

1025
00:44:27,800 --> 00:44:30,680
Speaker 2: seen such a decline in home burglars because people, yeah,

1026
00:44:30,680 --> 00:44:32,759
Speaker 2: they it's almost like too much of a hassle to

1027
00:44:32,840 --> 00:44:35,440
Speaker 2: even be a thief stealing people's stuff.

1028
00:44:35,440 --> 00:44:37,200
Speaker 1: Sure, you know, Yeah, you gotta do it in bulk,

1029
00:44:37,239 --> 00:44:39,080
Speaker 1: and you gotta target the right houses. I guess a

1030
00:44:39,200 --> 00:44:41,680
Speaker 1: law the home alone guys. But all right, let's get

1031
00:44:41,719 --> 00:44:45,719
Speaker 1: to another question, Matt. This one comes from Melissa. She says, Hi,

1032
00:44:45,840 --> 00:44:48,240
Speaker 1: I'd like to open a solo four one K before

1033
00:44:48,320 --> 00:44:52,040
Speaker 1: twenty twenty four ends. Vanguard no longer offers one. Do

1034
00:44:52,080 --> 00:44:54,680
Speaker 1: you have any recommendations? What company would you go with?

1035
00:44:55,160 --> 00:44:55,520
Speaker 3: Nice?

1036
00:44:55,640 --> 00:44:58,680
Speaker 2: Okay, I love that she is jumping on the solo

1037
00:44:58,760 --> 00:45:03,279
Speaker 2: for one K. It is our preferred retirement account for solopreneurs,

1038
00:45:03,320 --> 00:45:05,840
Speaker 2: for sure. And the fact that you turn to Vanguard

1039
00:45:05,920 --> 00:45:09,200
Speaker 2: first means that you care about low costs. That's freaking awesome.

1040
00:45:09,560 --> 00:45:12,240
Speaker 2: But you're right, Vanguard actually no longer offers a solo

1041
00:45:12,239 --> 00:45:14,960
Speaker 2: four one K. At the beginning of last year they

1042
00:45:15,120 --> 00:45:18,400
Speaker 2: pieced out and now a Census is in charge of

1043
00:45:18,440 --> 00:45:22,440
Speaker 2: those former Vanguard clients, and they are a decent choice.

1044
00:45:22,880 --> 00:45:25,560
Speaker 2: But we would probably go in a different direction since

1045
00:45:25,600 --> 00:45:27,440
Speaker 2: in your case, it sounds like you're starting from scratch,

1046
00:45:27,760 --> 00:45:30,640
Speaker 2: and that's mostly because of just a twenty dollars anal

1047
00:45:30,640 --> 00:45:33,200
Speaker 2: fee that they charge. So if you can avoid that

1048
00:45:33,239 --> 00:45:33,960
Speaker 2: all together, why not.

1049
00:45:34,120 --> 00:45:36,279
Speaker 1: Yeah, it's not the worst thing in the world. But

1050
00:45:36,320 --> 00:45:38,520
Speaker 1: it's also like, well, if you're going to open one up.

1051
00:45:38,560 --> 00:45:41,000
Speaker 3: And you haven't already, just go this direction instead.

1052
00:45:40,719 --> 00:45:42,400
Speaker 1: Of the Yeah, why to go with a player when

1053
00:45:42,400 --> 00:45:44,719
Speaker 1: you can go with an a player By players, Matt,

1054
00:45:44,800 --> 00:45:47,080
Speaker 1: let's just maybe you mentioned a few that we would

1055
00:45:47,080 --> 00:45:48,400
Speaker 1: go with if we were her. I mean, we have

1056
00:45:48,480 --> 00:45:51,400
Speaker 1: our solo four one ks with Fidelity. That's a ridiculously

1057
00:45:51,480 --> 00:45:54,560
Speaker 1: great option. The only downside and I found this out

1058
00:45:54,920 --> 00:45:58,040
Speaker 1: recently when I was trying to switch over from traditional

1059
00:45:58,520 --> 00:46:02,760
Speaker 1: solo four one k contribution to four one k contributions. Well,

1060
00:46:03,120 --> 00:46:06,239
Speaker 1: they're not available at Fidelity yet they basically promise. They

1061
00:46:06,280 --> 00:46:08,160
Speaker 1: told me, Hey, no, we're gonna get it done in

1062
00:46:08,200 --> 00:46:10,680
Speaker 1: twenty twenty five. We just can't tell you when. So

1063
00:46:11,200 --> 00:46:14,640
Speaker 1: it's coming soon apparently. But the other option, if you

1064
00:46:14,640 --> 00:46:16,760
Speaker 1: love low cost but want access to a Roth solo

1065
00:46:16,800 --> 00:46:20,480
Speaker 1: for one k, Schwab is probably the best other provider

1066
00:46:20,480 --> 00:46:23,200
Speaker 1: out there, the best other choice, and I believe they

1067
00:46:23,239 --> 00:46:26,840
Speaker 1: have access to Wroth solo for one ks as we speak,

1068
00:46:27,080 --> 00:46:31,600
Speaker 1: which is nice. They're similarly low cost to Fidelity. But

1069
00:46:32,080 --> 00:46:34,560
Speaker 1: you really can't go wrong with either one of these players.

1070
00:46:34,560 --> 00:46:36,440
Speaker 1: And if you're just looking mostly to contribute to a

1071
00:46:36,480 --> 00:46:41,000
Speaker 1: traditional solo four one K Fidelity Rocks, and they are

1072
00:46:41,000 --> 00:46:44,560
Speaker 1: a great pick. The costs are low, the fun choices

1073
00:46:45,000 --> 00:46:48,120
Speaker 1: are significant, and the low cost fund choices, which is

1074
00:46:48,120 --> 00:46:50,640
Speaker 1: what matters most to Matt and I are That's true,

1075
00:46:50,760 --> 00:46:52,040
Speaker 1: really really good, right.

1076
00:46:51,960 --> 00:46:54,400
Speaker 2: And one of the massive benefits of opening a solo

1077
00:46:54,600 --> 00:46:56,840
Speaker 2: four one K is that I don't think there's any

1078
00:46:56,880 --> 00:46:59,400
Speaker 2: other retirement plan that allows you to sock away as

1079
00:46:59,800 --> 00:47:01,560
Speaker 2: much as you can with a solo for one K

1080
00:47:01,719 --> 00:47:04,800
Speaker 2: this year. Yeah, the maximum of sixty nine thousand dollars.

1081
00:47:04,920 --> 00:47:08,400
Speaker 2: So if you are seriously looking to supercharge your retirement.

1082
00:47:08,160 --> 00:47:09,520
Speaker 3: That's how you do it. Joel.

1083
00:47:09,600 --> 00:47:11,239
Speaker 2: Let's get back to the beer that you and I

1084
00:47:11,480 --> 00:47:14,319
Speaker 2: enjoyed during this episode, which was a Lizard King, not

1085
00:47:14,400 --> 00:47:16,360
Speaker 2: an IPA, but a mosaic.

1086
00:47:16,000 --> 00:47:20,000
Speaker 3: Copped pale ale. This is my Pipeworks.

1087
00:47:19,480 --> 00:47:22,520
Speaker 2: Brewing Company and as expected, and they've got some crazy

1088
00:47:22,760 --> 00:47:24,839
Speaker 2: fighting graphics here on the can you know, like they

1089
00:47:24,920 --> 00:47:26,440
Speaker 2: have like the Ninja versus Unicorn.

1090
00:47:26,719 --> 00:47:28,239
Speaker 3: Yeah, you know, what do you think about this one?

1091
00:47:28,239 --> 00:47:31,040
Speaker 1: They've had the over the top labels since before they

1092
00:47:31,040 --> 00:47:34,120
Speaker 1: were cool, and yeah, I'm gonna say this is not

1093
00:47:34,160 --> 00:47:37,600
Speaker 1: my favorite. It's it's too floral, it's got lots of it,

1094
00:47:37,680 --> 00:47:40,880
Speaker 1: almost tastes like potpourri. Really, yeah, that's what that's the

1095
00:47:40,960 --> 00:47:44,400
Speaker 1: vibe I'm getting. And while maybe a light potpoury sense

1096
00:47:44,640 --> 00:47:48,280
Speaker 1: in the half bathroom of a place that I'm visiting,

1097
00:47:48,520 --> 00:47:49,279
Speaker 1: I don't mind it.

1098
00:47:49,320 --> 00:47:50,640
Speaker 3: I don't want it in my beer.

1099
00:47:50,440 --> 00:47:55,400
Speaker 2: Though, So nothing shaved pieces of wood that have been shaved, curled, dyed,

1100
00:47:55,560 --> 00:47:57,640
Speaker 2: and smell like something completely different. Yeah, sitting there on

1101
00:47:57,680 --> 00:47:59,200
Speaker 2: top of a candle, that's warming, and.

1102
00:48:00,080 --> 00:48:01,919
Speaker 1: I don't do pupper in my house, but I don't

1103
00:48:01,960 --> 00:48:04,120
Speaker 1: mind it somewhere else. I just but when my beer

1104
00:48:04,160 --> 00:48:05,040
Speaker 1: tastes like it, oh.

1105
00:48:05,000 --> 00:48:06,880
Speaker 3: It's just not my favorite. Do you think it's Is

1106
00:48:06,920 --> 00:48:08,560
Speaker 3: it the Mosaic? Are you not a fan of Moasaic?

1107
00:48:08,640 --> 00:48:09,560
Speaker 1: Maybe maybe that's it?

1108
00:48:09,719 --> 00:48:13,360
Speaker 2: Yeah, personally I am a more of a fan of Citra.

1109
00:48:13,680 --> 00:48:15,840
Speaker 2: Moasaic is more of like the old school kind of

1110
00:48:15,840 --> 00:48:18,279
Speaker 2: ipa palel hop that I think a lot of the

1111
00:48:18,280 --> 00:48:21,440
Speaker 2: breweries gravitated towards, like ten fifteen years ago, which is

1112
00:48:21,440 --> 00:48:22,239
Speaker 2: what this tastes like.

1113
00:48:22,239 --> 00:48:23,160
Speaker 3: This is what this reminds me of.

1114
00:48:23,239 --> 00:48:25,000
Speaker 1: It when this beer has been around for quite some

1115
00:48:25,000 --> 00:48:26,880
Speaker 1: time at this point so you're probably right. I think,

1116
00:48:26,920 --> 00:48:28,920
Speaker 1: I think so. I think Wizard King is like one

1117
00:48:28,960 --> 00:48:31,000
Speaker 1: of their og but they've had it for ten plus

1118
00:48:31,080 --> 00:48:32,040
Speaker 1: years Flagship Palel.

1119
00:48:32,160 --> 00:48:33,000
Speaker 3: Yeah, so I'm with you.

1120
00:48:33,040 --> 00:48:35,959
Speaker 2: Though not my absolute favorite, it's still fun to enjoy

1121
00:48:36,040 --> 00:48:37,040
Speaker 2: during our episode today.

1122
00:48:37,120 --> 00:48:39,759
Speaker 3: No doubt, any day you get to drink beer is

1123
00:48:39,800 --> 00:48:41,759
Speaker 3: a good day. That's true. But that's going to be

1124
00:48:41,760 --> 00:48:42,440
Speaker 3: it for this episode.

1125
00:48:42,480 --> 00:48:44,359
Speaker 2: You can find show notes up on the website at

1126
00:48:44,360 --> 00:48:47,080
Speaker 2: howtomoney dot com and Buddy, let's just wrap it up

1127
00:48:47,160 --> 00:48:47,919
Speaker 2: until next time.

1128
00:48:48,040 --> 00:49:01,799
Speaker 3: Best Friends Out and Best Friends Out bol