1 00:00:00,080 --> 00:00:02,880 Speaker 1: Welcome to How the Money. I'm Joel and I and Matt. 2 00:00:03,200 --> 00:00:07,040 Speaker 1: Today we're discussing rates for savers, sinking lower housing is hot, 3 00:00:07,360 --> 00:00:29,200 Speaker 1: and saving Halloween. It's right, Joe. We have a lot 4 00:00:29,240 --> 00:00:31,640 Speaker 1: of stories to get to on this Friday Flight episode 5 00:00:31,640 --> 00:00:34,120 Speaker 1: where we cover some different news stories that we've seen 6 00:00:34,120 --> 00:00:36,919 Speaker 1: in the headlines how they pertain to our personal finances. 7 00:00:36,920 --> 00:00:38,760 Speaker 1: But first, man, I've got a frugal or cheap for you. 8 00:00:38,960 --> 00:00:41,879 Speaker 1: Bring it five plans. We've talked about them before on 9 00:00:41,920 --> 00:00:44,280 Speaker 1: our show. They are accounts that allow you to invest 10 00:00:44,440 --> 00:00:47,800 Speaker 1: money in the markets that's gonna go towards higher education. Right. 11 00:00:48,120 --> 00:00:49,519 Speaker 1: A lot of times folks will set them up for 12 00:00:49,560 --> 00:00:52,200 Speaker 1: their kids, but anybody can use them. But my question 13 00:00:52,200 --> 00:00:54,960 Speaker 1: for you is is it frugal or cheap to ask 14 00:00:55,120 --> 00:00:58,800 Speaker 1: family members to donate to a five nine plan that 15 00:00:58,920 --> 00:01:01,520 Speaker 1: you might set up for a child. Well, that's a 16 00:01:01,520 --> 00:01:03,160 Speaker 1: good question. And so the reason I wanted to ask 17 00:01:03,200 --> 00:01:06,120 Speaker 1: you this is because we've had some birthdays recently and 18 00:01:06,200 --> 00:01:08,560 Speaker 1: we have either been getting cash for the kids or 19 00:01:08,760 --> 00:01:11,800 Speaker 1: even toys. And this is problematic for a couple of reasons. Right, 20 00:01:11,959 --> 00:01:14,240 Speaker 1: you know, we have plenty of toys. We don't necessarily 21 00:01:14,280 --> 00:01:17,279 Speaker 1: need more of you know, pieces of plastic or games 22 00:01:17,360 --> 00:01:19,280 Speaker 1: or books around the house necessarily, like we go to 23 00:01:19,319 --> 00:01:23,160 Speaker 1: the library. Uh so that's problematic. But secondly, cash like 24 00:01:23,240 --> 00:01:25,920 Speaker 1: literal cash dollar bills, and that's kind of an issue 25 00:01:25,959 --> 00:01:28,640 Speaker 1: these days because a lot of places aren't actually taking 26 00:01:28,640 --> 00:01:31,600 Speaker 1: cash when it comes to actually spending that money, and 27 00:01:32,000 --> 00:01:34,400 Speaker 1: we don't have a local bank anymore. We're online only, 28 00:01:34,440 --> 00:01:36,160 Speaker 1: and so I also can't just deposit it and kind 29 00:01:36,160 --> 00:01:38,560 Speaker 1: of siphon that money over into one of the kids accounts, 30 00:01:38,560 --> 00:01:39,959 Speaker 1: you know, where we kind of save up their money 31 00:01:40,200 --> 00:01:42,319 Speaker 1: for them personally, and so we're stuck with you know, 32 00:01:42,319 --> 00:01:44,679 Speaker 1: either toys or cash kind of sitting around and we're 33 00:01:44,680 --> 00:01:46,360 Speaker 1: not totally sure what to do. Yeah, that is the 34 00:01:46,400 --> 00:01:48,520 Speaker 1: one downside of online banks, right It is like when 35 00:01:48,520 --> 00:01:50,280 Speaker 1: you need to deposit cash, when you get a summer 36 00:01:50,320 --> 00:01:53,040 Speaker 1: cash and you're like, I can't take it somewhere. Most 37 00:01:53,040 --> 00:01:54,400 Speaker 1: of the time, it's not an issue because you can, 38 00:01:54,480 --> 00:01:55,880 Speaker 1: you know, it's pretty easy to spend it. But these 39 00:01:55,960 --> 00:01:58,040 Speaker 1: days we have found it's a little bit tougher, you know, 40 00:01:58,080 --> 00:02:00,520 Speaker 1: like we're doing some accounting where we're like, okay, well, 41 00:02:00,600 --> 00:02:03,240 Speaker 1: let's budget less, you know, maybe a hundred dollars less 42 00:02:03,240 --> 00:02:05,120 Speaker 1: for groceries this month, and we'll put that hundred dollar 43 00:02:05,160 --> 00:02:09,200 Speaker 1: bill towards groceries. But even that is not necessarily ideal. Yeah. True, 44 00:02:09,360 --> 00:02:14,000 Speaker 1: I think it's it's okay to ask parents, grandparents, loved 45 00:02:14,040 --> 00:02:16,919 Speaker 1: ones to to donate to a plan maybe in lieu 46 00:02:17,000 --> 00:02:19,480 Speaker 1: of gifts. But I think that can be a touchy 47 00:02:19,639 --> 00:02:23,280 Speaker 1: thing as well, because oftentimes grandparents are just get so 48 00:02:23,360 --> 00:02:26,720 Speaker 1: much joy from from giving their grandkids this tangible, physical 49 00:02:26,760 --> 00:02:28,919 Speaker 1: gift that that they can play with. And so I 50 00:02:28,919 --> 00:02:30,800 Speaker 1: don't know, maybe it's kind of a split the baby 51 00:02:30,840 --> 00:02:34,320 Speaker 1: here where where you say, hey, listen, maybe take half 52 00:02:34,360 --> 00:02:36,480 Speaker 1: of the money that you're going to spend on Birthday 53 00:02:36,560 --> 00:02:40,400 Speaker 1: or Christmas gifts and and put that towards Alan, please, 54 00:02:40,800 --> 00:02:43,360 Speaker 1: and and then the other half if you could maybe 55 00:02:43,360 --> 00:02:46,000 Speaker 1: get you know, toys or maybe one bigger toy, because 56 00:02:46,040 --> 00:02:49,520 Speaker 1: I completely agree with you. We're inundated with toys and 57 00:02:49,520 --> 00:02:51,240 Speaker 1: things in our house, like we don't need more of them, 58 00:02:51,400 --> 00:02:52,960 Speaker 1: but I know how much joy it brings to my 59 00:02:53,040 --> 00:02:56,080 Speaker 1: parents to give them something special. Um in a particularly 60 00:02:56,120 --> 00:02:59,120 Speaker 1: we love outdoor toys because they don't clutter the house 61 00:02:59,200 --> 00:03:01,839 Speaker 1: as much, and like a scooter or it's something bike 62 00:03:01,880 --> 00:03:05,000 Speaker 1: related whatever is great. But yeah, we're starting to get 63 00:03:05,040 --> 00:03:06,639 Speaker 1: into board games a little more too. Those are those 64 00:03:06,639 --> 00:03:08,560 Speaker 1: are good. We could use more board games, I guess. 65 00:03:08,760 --> 00:03:11,600 Speaker 1: But I love the idea of asking people to do that. 66 00:03:11,960 --> 00:03:13,799 Speaker 1: But but yeah, maybe a little bit of both is 67 00:03:14,040 --> 00:03:15,760 Speaker 1: the way to go. Nice man. Yeah, that's a good thought. 68 00:03:15,800 --> 00:03:17,680 Speaker 1: That's a good way of doing it. We haven't covered 69 00:03:17,720 --> 00:03:19,840 Speaker 1: this yet with any of our parents, you know, but 70 00:03:19,919 --> 00:03:21,760 Speaker 1: it's something that was on our minds recently. We're like, 71 00:03:21,760 --> 00:03:24,000 Speaker 1: you know what, like instead of doing this, like maybe 72 00:03:24,040 --> 00:03:25,640 Speaker 1: they could do this, but sure, we don't want to 73 00:03:25,680 --> 00:03:27,880 Speaker 1: deprive our parents of them, you know, having some of 74 00:03:27,880 --> 00:03:29,399 Speaker 1: that joy of being able to give some of those 75 00:03:29,440 --> 00:03:32,320 Speaker 1: gifts to the grand kids as well. Yeah, for sure. 76 00:03:32,320 --> 00:03:34,119 Speaker 1: All right, Well let's uh, you know, on the Friday flight. 77 00:03:34,160 --> 00:03:36,440 Speaker 1: Now that we've I think answered that question. Um, and 78 00:03:37,160 --> 00:03:39,080 Speaker 1: I don't think it's cheap. I think it's frugal. But 79 00:03:39,080 --> 00:03:40,480 Speaker 1: you gotta do it the right way, you know, because 80 00:03:40,560 --> 00:03:42,240 Speaker 1: you don't want to hurt any feelings when you're when 81 00:03:42,240 --> 00:03:44,120 Speaker 1: you're making that request. I think that's the right way 82 00:03:44,160 --> 00:03:45,760 Speaker 1: to do it. I agree. All right, let's get to 83 00:03:45,840 --> 00:03:48,200 Speaker 1: the stories we found interesting this week. Matt a couple 84 00:03:48,200 --> 00:03:50,760 Speaker 1: of weeks ago we talked about civic duty and talks 85 00:03:50,760 --> 00:03:52,880 Speaker 1: about voting. We did, We did, and it's obviously it's 86 00:03:52,920 --> 00:03:56,680 Speaker 1: incredibly important. With the passing of John Lewis, who was 87 00:03:56,840 --> 00:03:59,400 Speaker 1: our congressman here in Atlanta, you know, he has a 88 00:03:59,440 --> 00:04:02,320 Speaker 1: quote about out about voting and how it's essentially the 89 00:04:02,360 --> 00:04:04,840 Speaker 1: most powerful non violent tool that we have, and we 90 00:04:04,920 --> 00:04:07,480 Speaker 1: agree we think voting is. It's just an incredibly important 91 00:04:07,480 --> 00:04:09,920 Speaker 1: thing for for everybody who lives in a democracy to 92 00:04:10,040 --> 00:04:13,240 Speaker 1: do well. We wanted to mention that many companies are 93 00:04:13,280 --> 00:04:16,240 Speaker 1: being more understanding when it comes to the time it 94 00:04:16,279 --> 00:04:19,360 Speaker 1: takes to vote, more than corporations have signed on to 95 00:04:19,560 --> 00:04:22,920 Speaker 1: the Time to Vote Pledge. So not only are employees 96 00:04:22,960 --> 00:04:25,680 Speaker 1: getting paid time off to vote, some companies are even 97 00:04:25,720 --> 00:04:29,719 Speaker 1: offering that PTO if employees volunteer to work the polls, 98 00:04:29,760 --> 00:04:32,440 Speaker 1: which I think is so cool. Older volunteers are staying 99 00:04:32,440 --> 00:04:34,799 Speaker 1: home due to COVID. Of course, this is a pretty 100 00:04:34,800 --> 00:04:38,039 Speaker 1: timely benefit though, that's worth considering alongside other benefits like 101 00:04:38,080 --> 00:04:41,160 Speaker 1: healthcare coverage and retirement offerings like a company match, Like 102 00:04:41,240 --> 00:04:44,720 Speaker 1: does your employer care enough about you to give you 103 00:04:44,960 --> 00:04:47,080 Speaker 1: time off in order to vote? So It's great to 104 00:04:47,080 --> 00:04:50,320 Speaker 1: see companies prioritizing um not just pay and benefits, but 105 00:04:50,360 --> 00:04:53,600 Speaker 1: also saying, hey, you know what you should have UH, 106 00:04:53,640 --> 00:04:56,120 Speaker 1: and you deserve the time to be able to participate 107 00:04:56,160 --> 00:04:58,719 Speaker 1: in our democratic system. Yeah. And you know, if your 108 00:04:58,720 --> 00:05:01,159 Speaker 1: company isn't offering this, if this isn't necessarily something that 109 00:05:01,200 --> 00:05:04,240 Speaker 1: they have UH sought to introduce, I think that's something 110 00:05:04,279 --> 00:05:06,839 Speaker 1: that you could even advocate for as an employee. Is 111 00:05:06,839 --> 00:05:08,919 Speaker 1: something you can ask for. It all kind of depends 112 00:05:09,000 --> 00:05:11,560 Speaker 1: on just your company and that the culture of your company, 113 00:05:11,800 --> 00:05:14,240 Speaker 1: because really where you work it makes all the difference, 114 00:05:14,279 --> 00:05:16,200 Speaker 1: you know, like not only in the benefits that they offer, 115 00:05:16,320 --> 00:05:18,320 Speaker 1: but also to when it comes to to pay. We 116 00:05:18,360 --> 00:05:22,200 Speaker 1: saw recently that Hobby Lobby they just raised their minimum 117 00:05:22,240 --> 00:05:24,840 Speaker 1: wage to seventeen dollars an hour. Target is now at 118 00:05:24,920 --> 00:05:28,080 Speaker 1: fifteen dollars an hour minimums as of July. And now 119 00:05:28,160 --> 00:05:30,680 Speaker 1: Walmart Man they are doing a great job raising pay 120 00:05:30,760 --> 00:05:34,320 Speaker 1: for a lot of workers beginning in October. And they're 121 00:05:34,360 --> 00:05:37,000 Speaker 1: not just raising pay across the board, you know, they're 122 00:05:37,000 --> 00:05:39,320 Speaker 1: doing it by introducing some of these different roles from 123 00:05:39,320 --> 00:05:42,279 Speaker 1: of these like new team leadership roles. UH. This should 124 00:05:42,320 --> 00:05:44,760 Speaker 1: give a lot of employees more room, you know, for 125 00:05:45,040 --> 00:05:47,880 Speaker 1: career growth and for pay growth. And so if you 126 00:05:47,880 --> 00:05:50,680 Speaker 1: are looking for work, make sure to know what the 127 00:05:50,720 --> 00:05:52,919 Speaker 1: pay structure is like. Uh is that could have a 128 00:05:52,920 --> 00:05:55,920 Speaker 1: big impact on your career and your earning potential. Yeah, 129 00:05:55,960 --> 00:05:58,000 Speaker 1: it's great to see some of these companies institute a 130 00:05:58,000 --> 00:06:01,000 Speaker 1: minimum wage that's that's even high or than what you 131 00:06:01,000 --> 00:06:05,239 Speaker 1: know some politicians in Washington are proposing. There's another interesting story, 132 00:06:05,279 --> 00:06:09,160 Speaker 1: Matt about Etsy and how essentially some people have done 133 00:06:09,160 --> 00:06:12,559 Speaker 1: incredibly well making masks and selling them on Etsy. Between 134 00:06:12,600 --> 00:06:15,839 Speaker 1: April and June this year, shoppers purchased more than three 135 00:06:15,920 --> 00:06:19,000 Speaker 1: hundred and forty six million dollars worth of face masks. 136 00:06:19,200 --> 00:06:21,640 Speaker 1: Just in face masks, just in face masks at stores. 137 00:06:21,720 --> 00:06:26,040 Speaker 1: There's money. Yeah, it's incredible, And as many individuals found 138 00:06:26,040 --> 00:06:28,880 Speaker 1: themselves in a precarious financial position this spring, more than 139 00:06:28,920 --> 00:06:32,760 Speaker 1: a hundred thousand sellers started selling masks and positioned themselves 140 00:06:32,800 --> 00:06:35,960 Speaker 1: to grow their business by providing for for the massive 141 00:06:36,080 --> 00:06:40,000 Speaker 1: demand that was out there for face masks. It's this 142 00:06:40,080 --> 00:06:42,800 Speaker 1: really cool story of resiliency that shows that there is 143 00:06:42,839 --> 00:06:44,800 Speaker 1: opportunity if you're out there looking for it, right, if 144 00:06:44,839 --> 00:06:47,560 Speaker 1: you're willing to pivot and you have a needle and 145 00:06:47,600 --> 00:06:49,680 Speaker 1: thread and maybe some fabric, you can start making some 146 00:06:49,720 --> 00:06:52,640 Speaker 1: masks and and start making real money building a business 147 00:06:52,680 --> 00:06:55,479 Speaker 1: on Etsy. As cool to see how a bunch of 148 00:06:55,480 --> 00:06:57,400 Speaker 1: different sellers have done that. Sole as you're not making 149 00:06:57,400 --> 00:06:59,960 Speaker 1: like a crocheted mask, you know, like big old gaps 150 00:07:00,160 --> 00:07:02,279 Speaker 1: exactly doesn't work now, doesn't work at all. Have you 151 00:07:02,279 --> 00:07:03,520 Speaker 1: bought any off of that c Do you have like 152 00:07:03,520 --> 00:07:06,280 Speaker 1: a favorite face mask that that you always go to? Well, 153 00:07:06,320 --> 00:07:07,720 Speaker 1: I've got one that my mom gave me and I've 154 00:07:07,760 --> 00:07:09,400 Speaker 1: been wearing that like the whole time. I just watched 155 00:07:09,400 --> 00:07:11,320 Speaker 1: it from time to time. That's so funny, like most 156 00:07:11,360 --> 00:07:13,000 Speaker 1: of the masks that Kate and I use. Also, my 157 00:07:13,040 --> 00:07:16,560 Speaker 1: mom gave us. Oh really, okay, so thanks mom. Yeah, 158 00:07:16,600 --> 00:07:18,400 Speaker 1: there's some local artists that have released masks, and I've 159 00:07:18,400 --> 00:07:20,600 Speaker 1: thought about getting one of those, but I haven't pulled 160 00:07:20,640 --> 00:07:22,840 Speaker 1: the trigger yet. But at some point, you know, a 161 00:07:22,880 --> 00:07:25,320 Speaker 1: brewery mask would be good too, right, I'd be pretty sweet. 162 00:07:25,360 --> 00:07:27,560 Speaker 1: Are our local bike shop they actually, uh, they make 163 00:07:27,600 --> 00:07:29,320 Speaker 1: like those different bags that you can put on your 164 00:07:29,360 --> 00:07:32,400 Speaker 1: bike for like bike camping and you know, for holding 165 00:07:32,440 --> 00:07:34,520 Speaker 1: different things, like you know, I forget what they're called 166 00:07:34,560 --> 00:07:36,800 Speaker 1: necessarily but they kind of strap on your bike. But 167 00:07:37,000 --> 00:07:39,080 Speaker 1: they have been making some some different masks and they 168 00:07:39,120 --> 00:07:41,600 Speaker 1: actually look really cool because they're really handy with the 169 00:07:41,600 --> 00:07:45,240 Speaker 1: sewing machine and they look pretty dope. So yeah, let's 170 00:07:45,240 --> 00:07:48,160 Speaker 1: get to our Halloween story. Man. Hershey's is trying to 171 00:07:48,200 --> 00:07:52,440 Speaker 1: save Halloween. They created a website that's dedicated to trying 172 00:07:52,480 --> 00:07:54,840 Speaker 1: to help you make a smart decision as to whether 173 00:07:54,960 --> 00:07:57,200 Speaker 1: or not you should trigg or treat this year. Uh. 174 00:07:57,200 --> 00:08:01,080 Speaker 1: It is halloween dot org. Like candy makers in general, 175 00:08:01,160 --> 00:08:03,239 Speaker 1: are you know, I think they're nervous about how COVID 176 00:08:03,320 --> 00:08:06,440 Speaker 1: is going to affect Halloween plans as well as their sales. 177 00:08:06,480 --> 00:08:09,400 Speaker 1: Of course, some cities have you know, outright band Halloween 178 00:08:09,400 --> 00:08:12,880 Speaker 1: festivities and health officials and other cities have issued just 179 00:08:13,120 --> 00:08:16,040 Speaker 1: you know, strong warnings about staying safe and so you know, 180 00:08:16,080 --> 00:08:18,680 Speaker 1: all different folks are gonna, you know, take varying approaches 181 00:08:18,800 --> 00:08:21,760 Speaker 1: this Halloween. I think that site might be helpful as 182 00:08:21,840 --> 00:08:25,200 Speaker 1: individuals out there, as families are going to make their decision. Um. 183 00:08:25,240 --> 00:08:27,640 Speaker 1: I was also interested to see that Halloween uh it 184 00:08:27,680 --> 00:08:30,560 Speaker 1: only makes up one tenth of Hershey's annual sales. I 185 00:08:30,600 --> 00:08:33,680 Speaker 1: was expecting it to be more. Yeah, I would think, like, yeah, 186 00:08:33,720 --> 00:08:37,720 Speaker 1: because like for me, like or of the candy that 187 00:08:37,720 --> 00:08:39,880 Speaker 1: I buy all year is because of Halloween. But I 188 00:08:39,880 --> 00:08:41,360 Speaker 1: guess other folks out there they're kind of snacking all 189 00:08:41,440 --> 00:08:43,439 Speaker 1: year long. Yeah, And I think for me personally, Matt, 190 00:08:43,480 --> 00:08:46,240 Speaker 1: because Halloween is such a big deal on our street 191 00:08:46,559 --> 00:08:48,240 Speaker 1: and it's on a Saturday night, Like, there's just no 192 00:08:48,280 --> 00:08:50,000 Speaker 1: way it's gonna get shut I remember looking at it 193 00:08:50,080 --> 00:08:51,839 Speaker 1: last year and looking ahead and being like, oh, next 194 00:08:51,920 --> 00:08:53,880 Speaker 1: year is gonna be dope. It's gonna be on a 195 00:08:53,920 --> 00:08:56,400 Speaker 1: Saturday twice as many kids as Yeah. So I don't 196 00:08:56,400 --> 00:08:58,160 Speaker 1: think there's any way to actually shut it down. So 197 00:08:58,240 --> 00:08:59,559 Speaker 1: I'm just gonna have to get one of those long 198 00:08:59,679 --> 00:09:01,360 Speaker 1: arms and reach into the candy bowl with it and 199 00:09:01,400 --> 00:09:03,040 Speaker 1: drop it in kids bags or something like that. I 200 00:09:03,080 --> 00:09:05,120 Speaker 1: think I saw something about some neighbors like creating this 201 00:09:05,200 --> 00:09:07,800 Speaker 1: pipe where you know, like you can drop candy into 202 00:09:07,800 --> 00:09:09,280 Speaker 1: a pipe and you can kind of like feed it 203 00:09:09,320 --> 00:09:11,240 Speaker 1: down towards you know. I guess if your house is 204 00:09:11,240 --> 00:09:13,920 Speaker 1: slightly elevated what yours is, by the way, that would 205 00:09:13,960 --> 00:09:15,880 Speaker 1: be a good way to deliver the candy. All right, 206 00:09:15,920 --> 00:09:18,400 Speaker 1: I might might have to make that happen. But yeah, 207 00:09:18,400 --> 00:09:19,960 Speaker 1: it still kind of feels a little early to start 208 00:09:20,000 --> 00:09:22,679 Speaker 1: having these Halloween conversations. But yeah, we love Halloween around here. 209 00:09:22,720 --> 00:09:25,120 Speaker 1: Never too early. Uh, let's talk about two man of 210 00:09:25,160 --> 00:09:28,120 Speaker 1: the housing markets. Uh, there is a shrinking supply of 211 00:09:28,160 --> 00:09:31,400 Speaker 1: homes these days, as fewer Americans are listing their homes 212 00:09:31,400 --> 00:09:33,680 Speaker 1: for sale. And on top of that, man, with interest 213 00:09:33,760 --> 00:09:36,920 Speaker 1: rates hovering at all time lows, home prices are continuing 214 00:09:37,160 --> 00:09:40,600 Speaker 1: to rise. And so while the housing market typically it 215 00:09:40,640 --> 00:09:42,920 Speaker 1: cools off, you know with the weather, we might not 216 00:09:43,000 --> 00:09:45,120 Speaker 1: see that this year. The demand is there, but there's 217 00:09:45,160 --> 00:09:47,840 Speaker 1: just not enough supply. I think this is natural, right, 218 00:09:47,880 --> 00:09:51,400 Speaker 1: Folks are hesitant to open their house and allow strangers 219 00:09:51,440 --> 00:09:53,680 Speaker 1: to walk through their house when there's a virus that 220 00:09:53,720 --> 00:09:55,719 Speaker 1: you know, folks are afraid of catching. And so, you know, 221 00:09:55,800 --> 00:09:58,480 Speaker 1: it looks like we'll see a supercharged housing market continue 222 00:09:58,720 --> 00:10:01,079 Speaker 1: to drive up prices for the time being at least. Yeah, 223 00:10:01,120 --> 00:10:03,600 Speaker 1: it took just twenty two days to sell a home 224 00:10:03,679 --> 00:10:06,440 Speaker 1: in August, and that's the fastest on record. If you're 225 00:10:06,480 --> 00:10:08,600 Speaker 1: a buyer, you've got to be really careful right now, though, 226 00:10:08,600 --> 00:10:10,920 Speaker 1: not to bite off more than you can chew. It's 227 00:10:10,960 --> 00:10:13,160 Speaker 1: great to score a low interest rate. But but a 228 00:10:13,160 --> 00:10:15,160 Speaker 1: bidding war, and there are lots of those right now, 229 00:10:15,440 --> 00:10:18,320 Speaker 1: could easily wipe out any savings that you might realize 230 00:10:18,360 --> 00:10:20,880 Speaker 1: from these historically low rates. And if you do end 231 00:10:20,960 --> 00:10:23,200 Speaker 1: up buying, it's so much more important now than it 232 00:10:23,240 --> 00:10:25,079 Speaker 1: even normally is to plan to stay in that home 233 00:10:25,080 --> 00:10:28,359 Speaker 1: for a minimum of seven years. There's certainly no guarantee 234 00:10:28,400 --> 00:10:30,560 Speaker 1: that prices continue to rise like this, and in all 235 00:10:30,600 --> 00:10:32,560 Speaker 1: likelihood at some point, all right, things have to to 236 00:10:32,679 --> 00:10:34,680 Speaker 1: chill out. So if you're buying a home, make sure 237 00:10:34,720 --> 00:10:37,839 Speaker 1: it's it's a long term decision, not a short term fix. 238 00:10:38,200 --> 00:10:41,160 Speaker 1: And if you're selling a home, congrats, yeah, because you're 239 00:10:41,160 --> 00:10:43,360 Speaker 1: probably gonna do all right. Enjoy reading those rewards and 240 00:10:43,360 --> 00:10:45,320 Speaker 1: then maybe go rent something for a while. Why not. 241 00:10:46,000 --> 00:10:47,880 Speaker 1: Let's talk to you a little bit about an I 242 00:10:48,080 --> 00:10:49,720 Speaker 1: p O. This is something that I think a lot 243 00:10:49,760 --> 00:10:52,040 Speaker 1: of folks here about but they're not totally sure, Like, 244 00:10:52,080 --> 00:10:54,480 Speaker 1: what does it mean to invest into an I p O? 245 00:10:55,160 --> 00:10:56,960 Speaker 1: It's in the headlines a lot, you know, there are 246 00:10:57,000 --> 00:10:59,600 Speaker 1: a lot of them lately. And an initial public offering 247 00:10:59,640 --> 00:11:01,839 Speaker 1: is when company when they go public and they issue 248 00:11:01,840 --> 00:11:04,280 Speaker 1: stock for the first time. It typically allows them to 249 00:11:04,440 --> 00:11:07,560 Speaker 1: raise a lot of money. We don't invest in individual stocks, 250 00:11:07,559 --> 00:11:10,120 Speaker 1: you know, I p O or not. But because of 251 00:11:10,120 --> 00:11:11,880 Speaker 1: the press attention that many I p o s get, 252 00:11:11,920 --> 00:11:14,360 Speaker 1: it's I think it's even more important to avoid them. 253 00:11:14,640 --> 00:11:16,360 Speaker 1: Uh and for us, it's at least to talk about them, 254 00:11:16,360 --> 00:11:19,000 Speaker 1: you know. And if you are really interested maybe in 255 00:11:19,000 --> 00:11:22,040 Speaker 1: investing in an IPO, to invest with caution. Yeah. I 256 00:11:22,120 --> 00:11:23,800 Speaker 1: p O s do garner a lot of headlines. It's 257 00:11:23,840 --> 00:11:26,840 Speaker 1: it's something that that financial writers can write about, get 258 00:11:26,840 --> 00:11:30,080 Speaker 1: to eyeballs. People get excited about a company that has 259 00:11:30,360 --> 00:11:33,000 Speaker 1: been around for a while and has been successful. Finally 260 00:11:33,040 --> 00:11:35,880 Speaker 1: I can invest in that company. Sweet. There's typically a 261 00:11:35,880 --> 00:11:38,520 Speaker 1: lot of hype, yeah, surrounding an IPA. But take like 262 00:11:38,600 --> 00:11:41,640 Speaker 1: a historical example of like Facebook, for instance, at IPO 263 00:11:41,720 --> 00:11:44,800 Speaker 1: time for Facebook in the stock sold for thirty eight 264 00:11:44,800 --> 00:11:47,800 Speaker 1: dollars a share, but by fall it was down to 265 00:11:47,840 --> 00:11:50,520 Speaker 1: eighteen dollars a year and it took over a year 266 00:11:50,600 --> 00:11:53,520 Speaker 1: for that stock to hit the I p O price. Again, Historically, 267 00:11:53,520 --> 00:11:56,080 Speaker 1: that's on par that's average for an IPO. They don't 268 00:11:56,120 --> 00:11:58,880 Speaker 1: typically do well in the short term. Since then, of course, 269 00:11:58,920 --> 00:12:01,080 Speaker 1: Facebook has been a great stock to own, but make 270 00:12:01,120 --> 00:12:03,240 Speaker 1: sure that you're investing in a company for the long 271 00:12:03,360 --> 00:12:05,840 Speaker 1: term when you buy that stock, because a quick payday 272 00:12:05,920 --> 00:12:09,080 Speaker 1: is unlikely and investing with short term hope, it's just 273 00:12:09,120 --> 00:12:12,400 Speaker 1: a bad investing strategy. Individual stock investing, I don't think 274 00:12:12,559 --> 00:12:15,280 Speaker 1: is for something that most people should participate in, and 275 00:12:15,360 --> 00:12:17,200 Speaker 1: investing in an I p O is something that even 276 00:12:17,280 --> 00:12:19,280 Speaker 1: fewer people should consider. All right, Matt, we got more 277 00:12:19,280 --> 00:12:21,480 Speaker 1: to get to, including just how bad savings rates have 278 00:12:21,520 --> 00:12:24,560 Speaker 1: gotten for people that have money stashed away, and we'll 279 00:12:24,559 --> 00:12:36,520 Speaker 1: get to that in some other stories right after this break. Alright, 280 00:12:36,520 --> 00:12:38,000 Speaker 1: we're back from the break. This is our Friday Flight 281 00:12:38,040 --> 00:12:40,400 Speaker 1: episode where we talked through a bunch of different stories. 282 00:12:40,440 --> 00:12:41,920 Speaker 1: Here in a little bit, we're gonna talk about student 283 00:12:41,960 --> 00:12:45,880 Speaker 1: loans as well as a fiduciary rule that didn't quite happen, 284 00:12:46,080 --> 00:12:47,600 Speaker 1: but we'll get to those in a second. First though, 285 00:12:47,679 --> 00:12:51,520 Speaker 1: let's talk about savings interest rates. Man, they totally suck 286 00:12:51,640 --> 00:12:53,840 Speaker 1: right now. If you've got some money stashed away and 287 00:12:53,840 --> 00:12:57,240 Speaker 1: is saving as accounts, you are likely earning very little money. 288 00:12:57,480 --> 00:12:59,640 Speaker 1: But here's the thing low rates are. They're they're a 289 00:12:59,640 --> 00:13:02,360 Speaker 1: little in and a little yang for folks who own 290 00:13:02,360 --> 00:13:04,920 Speaker 1: a home. You know, the opportunity to to refinance has 291 00:13:05,000 --> 00:13:07,480 Speaker 1: been incredible. You know, You're able to lock in a 292 00:13:07,520 --> 00:13:11,120 Speaker 1: thirty year mortgage right now at a rates ats or 293 00:13:11,320 --> 00:13:14,720 Speaker 1: below three like that is virtually unheard of, you know, 294 00:13:14,760 --> 00:13:16,679 Speaker 1: even though as we mentioned, home prices are are through 295 00:13:16,720 --> 00:13:19,199 Speaker 1: the roof. That was a pun for you right there, 296 00:13:19,440 --> 00:13:22,240 Speaker 1: fun buddy. But at the same time, anyone who has 297 00:13:22,280 --> 00:13:25,240 Speaker 1: been a decent saver is feeling the crunch of these 298 00:13:25,240 --> 00:13:27,959 Speaker 1: lower rates and earning close to nothing on the money 299 00:13:28,040 --> 00:13:30,560 Speaker 1: in their savings accounts. All right, So why the low rates? 300 00:13:30,559 --> 00:13:32,520 Speaker 1: Why is this happening? Well, the reason the rates are 301 00:13:32,559 --> 00:13:35,480 Speaker 1: so lows because the Federal Reserve announced last week that 302 00:13:35,559 --> 00:13:38,400 Speaker 1: they would keep their benchmark interest rate near zero until 303 00:13:39,160 --> 00:13:40,840 Speaker 1: three or as long as it takes to help the 304 00:13:40,880 --> 00:13:44,520 Speaker 1: economy bounce back from the impacts of COVID. By keeping 305 00:13:44,600 --> 00:13:46,800 Speaker 1: rates low, the idea is that the Fed can help 306 00:13:46,840 --> 00:13:50,520 Speaker 1: to encourage borrowing. So I think low mortgages, more affordable 307 00:13:50,559 --> 00:13:53,480 Speaker 1: student loans, even lower credit card rates maybe, although credit 308 00:13:53,520 --> 00:13:56,400 Speaker 1: card rates seem to have stay pretty high unfortunately. But 309 00:13:56,559 --> 00:14:00,240 Speaker 1: but this increased borrowing then stimulates the economy, but at 310 00:14:00,240 --> 00:14:01,840 Speaker 1: the same time it hurts how the money listeners the 311 00:14:01,840 --> 00:14:04,600 Speaker 1: most probably because they're the ones who are most focused 312 00:14:04,640 --> 00:14:07,880 Speaker 1: on building up meaningful savings. Yeah, and even though borrowing 313 00:14:08,080 --> 00:14:10,840 Speaker 1: rates are low, like, we're definitely not gonna encourage you 314 00:14:10,880 --> 00:14:12,000 Speaker 1: to you know, go out and get a loan to 315 00:14:12,040 --> 00:14:14,280 Speaker 1: help the economy. We're not asking you to to stimulate 316 00:14:14,280 --> 00:14:16,839 Speaker 1: the economy for us by taking on more debt, right, No, no, no, 317 00:14:17,320 --> 00:14:19,280 Speaker 1: we still want you to save your money even if 318 00:14:19,320 --> 00:14:22,000 Speaker 1: savings interest rates are terrible. One of the best ways 319 00:14:22,040 --> 00:14:23,160 Speaker 1: you can make is to find a you know, a 320 00:14:23,200 --> 00:14:25,680 Speaker 1: bank that is paying a great rate and then also 321 00:14:25,720 --> 00:14:28,360 Speaker 1: to definitely make sure you aren't paying a monthly fee 322 00:14:28,640 --> 00:14:30,320 Speaker 1: in order to have an account with them, you know. 323 00:14:30,440 --> 00:14:32,680 Speaker 1: And so that means gravitating away from the big banks, 324 00:14:33,040 --> 00:14:36,200 Speaker 1: even though you will lose the ability to deposit cash locally, 325 00:14:36,280 --> 00:14:38,800 Speaker 1: like I was complaining about earlier, Uh, it's still worth it. 326 00:14:39,120 --> 00:14:41,520 Speaker 1: And instead that probably means moving well to a credit 327 00:14:41,600 --> 00:14:44,960 Speaker 1: union where you can deposit locally, or an online bank. 328 00:14:45,360 --> 00:14:47,240 Speaker 1: We're big fans of online banks to check out like 329 00:14:47,280 --> 00:14:50,560 Speaker 1: discover ally c I T or yeah, one of the 330 00:14:50,560 --> 00:14:53,120 Speaker 1: other online banks that that pays a reasonable rate without 331 00:14:53,240 --> 00:14:56,600 Speaker 1: charging unnecessary fees. And if you're looking for the best 332 00:14:56,720 --> 00:14:58,520 Speaker 1: rate out there right now. Well, it's kind of hard 333 00:14:58,520 --> 00:15:01,400 Speaker 1: to find right because anybody who has signed up for 334 00:15:01,480 --> 00:15:04,320 Speaker 1: an online bank in recent months, they've noticed that rates 335 00:15:04,320 --> 00:15:07,080 Speaker 1: have drop precipitously, and so what looks like a decent 336 00:15:07,160 --> 00:15:10,880 Speaker 1: rate now looks pitiful. But Axos is a bank that 337 00:15:10,920 --> 00:15:14,160 Speaker 1: Matt I've talked about before. Their rate is incredibly strong. 338 00:15:14,240 --> 00:15:16,280 Speaker 1: It's it's it's much better right now than than even 339 00:15:16,320 --> 00:15:18,120 Speaker 1: some of the banks we typically talk about. Yeah, I've 340 00:15:18,120 --> 00:15:20,160 Speaker 1: had an online free business checking account with them for 341 00:15:20,240 --> 00:15:23,520 Speaker 1: years for my photography company. Yeah, and now they're offering 342 00:15:24,240 --> 00:15:27,840 Speaker 1: interest rates out there up to one point oh five percent, 343 00:15:28,280 --> 00:15:30,160 Speaker 1: which is like double what most of the other Actually 344 00:15:30,200 --> 00:15:31,880 Speaker 1: sounds pretty good compared to what a lot of the 345 00:15:31,880 --> 00:15:34,600 Speaker 1: other banks are offering. Yeah, under normal circumstances, that's a 346 00:15:34,680 --> 00:15:37,880 Speaker 1: terrible ratio and savings, but right now it's great. Their 347 00:15:37,880 --> 00:15:40,560 Speaker 1: mobile app and user interface aren't incredible. But if you're 348 00:15:40,560 --> 00:15:42,920 Speaker 1: just looking for someplace to park an e fund, we'll 349 00:15:43,040 --> 00:15:44,800 Speaker 1: check them out. We'll link to that account in the 350 00:15:44,800 --> 00:15:47,360 Speaker 1: show notes. And the national average rate being paid to 351 00:15:47,400 --> 00:15:51,120 Speaker 1: sabers right now is point zero five percent, So it's 352 00:15:51,200 --> 00:15:54,640 Speaker 1: essentially minuscule, almost non existent, incredibly small. So even though 353 00:15:54,640 --> 00:15:57,920 Speaker 1: that that access rate isn't anything to to write home about, 354 00:15:57,960 --> 00:15:59,960 Speaker 1: it is by far better than the average, and it's 355 00:16:00,000 --> 00:16:02,080 Speaker 1: better than than some of the best rates out there too, 356 00:16:02,200 --> 00:16:05,040 Speaker 1: being offered by these other banks that that we also like. Yes, 357 00:16:05,080 --> 00:16:07,960 Speaker 1: the rates are low for savers, they're also low for borrowers. 358 00:16:08,000 --> 00:16:11,000 Speaker 1: On the note of taking out loans right on borrowing, 359 00:16:11,400 --> 00:16:13,400 Speaker 1: h an interesting impact of the coronavirus is that the 360 00:16:13,480 --> 00:16:16,720 Speaker 1: number of new federal student loans declined forty two percent 361 00:16:16,880 --> 00:16:19,800 Speaker 1: during the recent summer months. Obviously, this is due to 362 00:16:19,840 --> 00:16:22,760 Speaker 1: the uncertainty of of what higher education was gonna look 363 00:16:22,800 --> 00:16:24,840 Speaker 1: like for colleges men, And I think it's good to 364 00:16:24,880 --> 00:16:27,480 Speaker 1: see too. You know that students and their parents that 365 00:16:27,560 --> 00:16:29,880 Speaker 1: they are hesitant to borrow a ton of money to 366 00:16:30,040 --> 00:16:33,760 Speaker 1: pay maybe for fancier schools, in particular with so many 367 00:16:33,800 --> 00:16:36,280 Speaker 1: classes going online right now, or with a lot of 368 00:16:36,360 --> 00:16:39,400 Speaker 1: colleges implementing online only like after Thanksgiving, you know, when 369 00:16:39,440 --> 00:16:42,200 Speaker 1: when so much of the semester doesn't include the things 370 00:16:42,240 --> 00:16:46,080 Speaker 1: that you are are paying for, those non tangible elements. Uh, 371 00:16:46,120 --> 00:16:47,640 Speaker 1: it's tough to to fork out a ton of money 372 00:16:47,680 --> 00:16:49,800 Speaker 1: for that, Yeah, for sure, And it will be interesting 373 00:16:49,840 --> 00:16:52,560 Speaker 1: to see the longer term effects of the pandemic on 374 00:16:52,640 --> 00:16:55,280 Speaker 1: higher education. There's a big shift this year, but will 375 00:16:55,280 --> 00:16:57,880 Speaker 1: it last. When the cost of college has easily outpaced 376 00:16:57,920 --> 00:17:01,680 Speaker 1: the rate of inflation since the eighties by nearly four percent, 377 00:17:02,240 --> 00:17:04,520 Speaker 1: it's possible that this could be a turning point, or 378 00:17:04,560 --> 00:17:06,919 Speaker 1: at least we might see a slowing of the insane 379 00:17:06,960 --> 00:17:09,639 Speaker 1: increase of the cost of tuition and books. If you 380 00:17:09,680 --> 00:17:11,960 Speaker 1: know a high school senior, now, more than ever, it 381 00:17:12,000 --> 00:17:14,600 Speaker 1: seems like a great time to consider a local community 382 00:17:14,600 --> 00:17:16,200 Speaker 1: college for a couple of years to get those core 383 00:17:16,200 --> 00:17:18,880 Speaker 1: classes out of the way without taking on almost any debt, 384 00:17:18,920 --> 00:17:21,880 Speaker 1: and hopefully either your state offers free access to community 385 00:17:21,920 --> 00:17:24,359 Speaker 1: college or you're able to pay for it in cash 386 00:17:24,440 --> 00:17:27,000 Speaker 1: because the cost is so inexpensive, and you can always 387 00:17:27,000 --> 00:17:29,520 Speaker 1: transfer after two years and finish up at a different school. 388 00:17:29,560 --> 00:17:31,040 Speaker 1: That's right. To make sure you read the fine print 389 00:17:31,040 --> 00:17:33,040 Speaker 1: and you know what classes transfer, right. Yeah, there was 390 00:17:33,080 --> 00:17:38,080 Speaker 1: an interesting Facebook kerfuffle about whether community college credits transfer, 391 00:17:38,160 --> 00:17:41,480 Speaker 1: and certainly important to do your due diligence beforehand to 392 00:17:41,560 --> 00:17:43,919 Speaker 1: know which classes you're taking are going to transfer, But 393 00:17:44,000 --> 00:17:45,760 Speaker 1: for the most part that's not an issue. And on 394 00:17:45,760 --> 00:17:48,879 Speaker 1: the note of student loans. Uh, you know, beyond just 395 00:17:48,960 --> 00:17:51,480 Speaker 1: interesting some great student loan news. I saw that Mike 396 00:17:51,480 --> 00:17:54,240 Speaker 1: Bloomberg is uh, he's donating a hundred million dollars to 397 00:17:54,480 --> 00:17:58,399 Speaker 1: for historically black medical schools. Charles Drew Medical School, Howard 398 00:17:58,600 --> 00:18:01,399 Speaker 1: Harry and Morehouse School of Medicine here in Atlanta. They 399 00:18:01,440 --> 00:18:04,120 Speaker 1: are all receiving that donation, which is pretty awesome. Man. 400 00:18:04,600 --> 00:18:06,600 Speaker 1: It's probably just a drop in the bucket, though for 401 00:18:06,720 --> 00:18:09,639 Speaker 1: Bloomberg's net worth, I'm guessing that's true. That's true. But 402 00:18:09,680 --> 00:18:11,760 Speaker 1: I will say when when rich people donate a vast 403 00:18:11,760 --> 00:18:14,000 Speaker 1: sum of money, I feel like there's always the headlines. 404 00:18:14,000 --> 00:18:16,320 Speaker 1: They're like, but that's not much of what they actually own, 405 00:18:16,440 --> 00:18:19,280 Speaker 1: And I'm like, who cares, man, It's still an amazing thing. 406 00:18:19,400 --> 00:18:21,560 Speaker 1: It's generous, it's generous, and it's great, and I don't 407 00:18:21,600 --> 00:18:24,280 Speaker 1: want to diminish his gift. That's huge, and and mad 408 00:18:24,280 --> 00:18:26,680 Speaker 1: props to Bloomberg for for making that happen, and also 409 00:18:26,720 --> 00:18:29,680 Speaker 1: too typically, sometimes donations like that will spur on other 410 00:18:29,720 --> 00:18:32,720 Speaker 1: wealthier folks who might be expected to make a similar donation. 411 00:18:32,760 --> 00:18:35,159 Speaker 1: It kind of encourages them to do something similar. And 412 00:18:35,160 --> 00:18:37,600 Speaker 1: there's different pledges where folks sign up where they'll agree 413 00:18:37,640 --> 00:18:39,600 Speaker 1: to donate a certain amount of their net worth, you know, 414 00:18:39,720 --> 00:18:41,399 Speaker 1: you know, when they die, that kind of thing. So 415 00:18:41,480 --> 00:18:45,800 Speaker 1: it's like setting a good example. Basic exactly. Yeah, yeah, Matt, 416 00:18:46,000 --> 00:18:47,320 Speaker 1: let's get to our last story of the day. This 417 00:18:47,359 --> 00:18:51,600 Speaker 1: one was about the fiduciary rule that was proposed a 418 00:18:51,600 --> 00:18:54,399 Speaker 1: long time ago when Barack Obama was still president, and 419 00:18:54,440 --> 00:18:57,399 Speaker 1: it's interesting that rule was basically never implemented because of 420 00:18:57,520 --> 00:19:00,760 Speaker 1: a change in administration. And basically what that will attempted 421 00:19:00,800 --> 00:19:03,960 Speaker 1: to do was it would have required all registered investment 422 00:19:03,960 --> 00:19:07,080 Speaker 1: advisors to make investment decisions that were in the best 423 00:19:07,160 --> 00:19:10,359 Speaker 1: interests of their clients, which sounds like a novel concept, right, 424 00:19:10,400 --> 00:19:13,679 Speaker 1: should be that way anyway, right right, right, exactly, But 425 00:19:13,680 --> 00:19:16,000 Speaker 1: it's not always the case, right Yeah. Like we said, 426 00:19:16,000 --> 00:19:18,840 Speaker 1: that rule wasn't implemented. But it's interesting to see that 427 00:19:18,920 --> 00:19:21,640 Speaker 1: there was a new study that found that because firms 428 00:19:21,680 --> 00:19:24,480 Speaker 1: were forced to prepare and make changes anyway while they 429 00:19:24,600 --> 00:19:26,439 Speaker 1: thought that rule is going to be implemented, many of 430 00:19:26,440 --> 00:19:29,720 Speaker 1: those firms who adopted the fiduciary standard and stopped selling 431 00:19:29,760 --> 00:19:32,680 Speaker 1: bad products to their customers have actually continued to do so. 432 00:19:32,960 --> 00:19:34,399 Speaker 1: And so that means that even though there is an 433 00:19:34,400 --> 00:19:38,639 Speaker 1: illegal obligation for these investment companies, many of the giant 434 00:19:38,680 --> 00:19:41,919 Speaker 1: advisory firms adopted the standard anyway in essence, even though 435 00:19:41,960 --> 00:19:44,159 Speaker 1: they didn't have to. Yeah, it's like just the threat 436 00:19:44,240 --> 00:19:46,880 Speaker 1: of that fiduciary rule being implemented was enough to kind 437 00:19:46,880 --> 00:19:51,600 Speaker 1: of like zap these uh investing firms into good behavior exactly, yeah, 438 00:19:51,880 --> 00:19:54,240 Speaker 1: uh yeah. And so for example, the worst kinds of 439 00:19:54,240 --> 00:19:57,560 Speaker 1: annuities out there, right, they have super high fees which 440 00:19:57,560 --> 00:20:00,760 Speaker 1: are terrible for almost all people. They saw dramatic decline 441 00:20:00,760 --> 00:20:03,480 Speaker 1: in sales a few years back as the fiduciary rule 442 00:20:03,600 --> 00:20:06,600 Speaker 1: was was moving towards implementation. Right, But even now that 443 00:20:06,640 --> 00:20:09,320 Speaker 1: we are moving towards the fiduciary standard, you know, those 444 00:20:09,320 --> 00:20:12,160 Speaker 1: awful products aren't being offered at nearly the same rate. 445 00:20:12,359 --> 00:20:15,040 Speaker 1: And so let's let's hope that trend continues. Because yeah, 446 00:20:15,080 --> 00:20:18,560 Speaker 1: high fee complex products like variable annuities, they are not 447 00:20:18,840 --> 00:20:21,240 Speaker 1: in the best interest of almost anyone. So we would 448 00:20:21,240 --> 00:20:23,640 Speaker 1: recommend for you to stay away from those annuities. Maybe 449 00:20:23,640 --> 00:20:26,160 Speaker 1: stay away from single stock investing as well, unless you 450 00:20:26,240 --> 00:20:29,040 Speaker 1: are really into it and you're doing all your research. Instead, 451 00:20:29,040 --> 00:20:32,720 Speaker 1: go with just simple, widely diversified low cost index funds, 452 00:20:33,080 --> 00:20:35,040 Speaker 1: and if you do feel the need to to talk 453 00:20:35,040 --> 00:20:37,679 Speaker 1: to a financial advisor about your investments and about your 454 00:20:37,680 --> 00:20:40,359 Speaker 1: financial future, will make sure they are a fiduciary. Make 455 00:20:40,400 --> 00:20:42,560 Speaker 1: sure they're willing to sign a pledge that says that 456 00:20:42,600 --> 00:20:45,240 Speaker 1: they are gonna do what's in your best interest, not 457 00:20:45,320 --> 00:20:47,480 Speaker 1: what's in their best interests, not selling you products that 458 00:20:47,520 --> 00:20:49,800 Speaker 1: benefit them. Yeah, that's where the problem comes in, because 459 00:20:49,880 --> 00:20:52,000 Speaker 1: i mean, like with the annuities, like some of the 460 00:20:52,040 --> 00:20:55,240 Speaker 1: fees on those things are we're around ten percent ten 461 00:20:55,280 --> 00:20:57,840 Speaker 1: percent of the cost of the actual product was dedicated 462 00:20:58,119 --> 00:21:00,840 Speaker 1: to commissions. That's mind blowing. Times those costs get a 463 00:21:00,880 --> 00:21:03,320 Speaker 1: little buried in the paperwork too, so so you don't 464 00:21:03,359 --> 00:21:05,800 Speaker 1: notice them. But that was encouraging to see that even 465 00:21:05,800 --> 00:21:08,240 Speaker 1: though the rule wasn't implemented like we would have liked 466 00:21:08,240 --> 00:21:11,040 Speaker 1: to see that, it's still had a really important impact 467 00:21:11,040 --> 00:21:13,440 Speaker 1: on the industry. So it's a trend. Yeah, all right, Matt, 468 00:21:13,440 --> 00:21:15,639 Speaker 1: that's gonna do it for this episode. For folks that 469 00:21:15,720 --> 00:21:17,480 Speaker 1: want the show notes and links to some of the 470 00:21:17,480 --> 00:21:19,800 Speaker 1: sites we mentioned in this episode, just go to our 471 00:21:19,840 --> 00:21:22,040 Speaker 1: website at how to money dot com. Yeah, we'll be 472 00:21:22,040 --> 00:21:24,080 Speaker 1: sure to link to that Halloween website as well as 473 00:21:24,440 --> 00:21:26,560 Speaker 1: that access site as well, where you can find that 474 00:21:26,600 --> 00:21:29,320 Speaker 1: one percent interest rate being paid to savers. So we 475 00:21:29,359 --> 00:21:31,000 Speaker 1: hope that you are having a good Friday, that you've 476 00:21:31,000 --> 00:21:33,560 Speaker 1: got a good weekend planned. Uh maybe at some point 477 00:21:33,640 --> 00:21:35,639 Speaker 1: during the weekend. If you haven't left us review, you 478 00:21:35,680 --> 00:21:39,000 Speaker 1: can head over to Apple Podcasts because if you like 479 00:21:39,080 --> 00:21:41,000 Speaker 1: our show, if you find it helpful, we would love 480 00:21:41,040 --> 00:21:43,240 Speaker 1: for you to leave us a positive, solid review over there. 481 00:21:43,480 --> 00:21:45,960 Speaker 1: Those reviews always really help us out. Yeah, perfect Sunday 482 00:21:46,000 --> 00:21:49,639 Speaker 1: afternoon activity writing a review for a podcast. All right, 483 00:21:49,920 --> 00:21:52,520 Speaker 1: that's gonna do it for this episode. Then until next time, 484 00:21:52,840 --> 00:21:54,680 Speaker 1: Best Friends Out, Best Friends Out.