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

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Speaker 1: we're answering your listener questions.

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Speaker 2: That's right, buddy, listener question. Monday, we're gonna hear from

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Speaker 2: a listener who is questioning our money gears, the order

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Speaker 2: of operations that we prescribe. Question us at your own peril. Yeah,

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Speaker 2: because we said so, that's why, that's right from childhood.

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Speaker 2: That won't be the only answer that we give it.

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Speaker 2: We'll explain why another listener is looking for ways to

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Speaker 2: not squander an inheritance. This is actually a return caller

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Speaker 2: or a return voice memo sender. Perhaps another listener is

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Speaker 2: wondering if he should be turning to gold with all

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Speaker 2: the uncertainty that we've seen with gold hitting all time highs,

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Speaker 2: whether or not we would suggest doing that. We get

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Speaker 2: to those listener questions plus more during our episode today,

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Speaker 2: And I will say too, I think it's so good

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Speaker 2: for us to hear directly from listeners because I don't

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Speaker 2: know about you, Joel. Sometimes it's easy for me to

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Speaker 2: forget that we're talking to people. Yeah, and I'm always

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Speaker 2: reminded of that. Honestly, it's when listeners, well, first of

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Speaker 2: all emails and sometimes folks will send us their story

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Speaker 2: and share with us Facebook group two. We always well

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Speaker 2: that's the thing. I don't there, I'm never on Facebook.

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Speaker 2: Maybe does that go on in the group.

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Speaker 1: Someone drop a suggestion for you this week too? To

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Speaker 1: me specifically, I guess there's something that automatically shuts off

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Speaker 1: the bathroom ceiling fan. So because you'd mentioned that as

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Speaker 1: a problem recently.

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Speaker 2: Oh, I remember, I remember that conversation. Well, maybe I'll

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Speaker 2: get in there for that. But specifically, I mean, we

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Speaker 2: read all the emails that folks send our way, but

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Speaker 2: also listener questions man hit right out the heart of

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Speaker 2: a literally being able to get to hear from listeners,

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Speaker 2: and oftentimes they're able to share what they've got going

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Speaker 2: on and how some of the things we've talked about

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Speaker 2: have moved the needle when it comes to their personal

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Speaker 2: finances for sure.

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Speaker 1: Okay, one quick thing I wanted to mention, something that

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Speaker 1: seems insignificant, seems trivial, but can make a real difference,

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Speaker 1: is changing your furnace filters. And I guess more more

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Speaker 1: home talk with your well in this old house. This

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Speaker 1: is not my typical beat. This is usually your beat, Matt,

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Speaker 1: but taking here stuff around the house. But it's it's shocking.

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Speaker 1: Like I was looking kind of into the statistics of

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Speaker 1: what a clogged filter, how much harder it makes your

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Speaker 1: furnace work, which just means it's running less efficiently and

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Speaker 1: therefore it's running longer, sucking up more energy whatever kind

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Speaker 1: of you know energy.

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Speaker 2: You're just users, whether it's natural gas or training the loader.

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Speaker 2: That's right.

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Speaker 1: And so you're you're not only paying more for your

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Speaker 1: heating bill in the here and now by not replacing

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Speaker 1: your filters regularly, but it's also you're going to be

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Speaker 1: straining your unit more and it's probably going to go

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Speaker 1: out a year sooner than it would have otherwise. And

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Speaker 1: this is one of those things that like twenty five

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Speaker 1: year old Joel would have been like whatever, old man

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Speaker 1: like like, I don't know what you're talking about.

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Speaker 2: But a middle aged is down this is his bet. Yeah.

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Speaker 1: And I also realized just how simple even idiots like me,

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Speaker 1: like replacing an air filter takes about thirty seconds, and

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Speaker 1: the cost of an air filters and significant. I've actually

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Speaker 1: got the furnace that has the four inch air filters.

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Speaker 1: Have you seen those?

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Speaker 2: Oh? Yeah, the really thick ones.

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Speaker 1: Yeah, And so my air filters cost more, but I

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Speaker 1: have to replace them less often. But I'm supposed to

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Speaker 1: replace them every six months instead of every three months.

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Speaker 1: And so that's how I used to do this. I

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Speaker 1: buy my costco, I keep them in the box right

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Speaker 1: next to the furnace. Yeah, and then I put it

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Speaker 1: on the calendar and it's basically like July and January

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Speaker 1: when I do mine.

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Speaker 2: Yeah. So one of the advantages of having the four

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Speaker 2: inch filter is that there there is more material essentially

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Speaker 2: that the air is going through, so it actually strains

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Speaker 2: your HVAC less. I think sometimes folks might think, oh, well, no,

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Speaker 2: that's actually probably the opposite of what I want, right,

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Speaker 2: But if you actually look at the filter, they're like

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Speaker 2: instead of tiny little v's that's in one inch, they're

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Speaker 2: like giant vs right, that go the entire depth of

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Speaker 2: the you know, the forge filter, which increases the surface

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Speaker 2: area so that basically like hair and whatever other junk

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Speaker 2: lands on the filter doesn't immediately back up the flow

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Speaker 2: of air as is passing through the filter. So that's

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Speaker 2: pretty nice.

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Speaker 1: I love how you give the scientific explanation for it,

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Speaker 1: and I'm just trying to convince people.

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Speaker 2: To say, well, I looked it up one se because

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Speaker 2: I'm like, well, how come some of them have like

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Speaker 2: the for inch filter. In the past, I had an

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Speaker 2: h fact that required the four inch, and I thought,

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Speaker 2: can I get away with one inch? Because the four

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Speaker 2: inch are are certainly more expensive.

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Speaker 1: But again you have to replace them less often. So

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Speaker 1: really true, you probably kind of breaking even more time.

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Speaker 1: And what you said is so clutch, which is keeping

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Speaker 1: it right there next to the because you're thinking, oh,

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Speaker 1: we am I gonna this is big bulky or whatever,

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Speaker 1: And specifically where's your furnace? Is it in like the

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Speaker 1: do you have one in the cross space work?

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Speaker 2: Okay? So here here's the thing. Sometimes I have been

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Speaker 2: less excited about leaving my air filters down there because

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Speaker 2: it's sometimes it can be musty down there, and you're thinking,

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Speaker 2: wait a minute, am I just allowing this air filter

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Speaker 2: to mold and get all dank? Keep it wrapped in

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Speaker 2: the plastic in the box. Well, as soon as you

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Speaker 2: open it, it's you cracked the seal because a lot

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Speaker 2: of times they're wrapped in the plastic wrap or whatever.

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Speaker 2: So I put all that to say, I also put

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Speaker 2: mine in a trash bag, okay, right next to the

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Speaker 2: so I open it and then it's exposed. But I mean,

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Speaker 2: moisture can get through cardboard, so you stick it a

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Speaker 2: trash bag. So if you're paranoid like me, that's what

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Speaker 2: I do. Specifically to the air filters that are in

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Speaker 2: my cross space, the one of the ones up in

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Speaker 2: the attic, I don't worry about those because it stays pretty,

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Speaker 2: you know, pretty dry up there.

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Speaker 1: One of these days on the podcast will discuss all

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Speaker 1: the weird things that all the other ways paranoia runs

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Speaker 1: your life. But for now, let's mention the beer that

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Speaker 1: we're having on this episode. This is coconut maple macaroon

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Speaker 1: barrel age Scotchail from Incendiary Brewing Sounds.

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Speaker 2: I thought it was just called we Heavy, but I

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Speaker 2: liked all your it's it does say that on the side.

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Speaker 2: Let's see it.

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Speaker 1: Yeah, yeah, no, this is a big and we'll give

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Speaker 1: our thoughts later on. Stick with us, and by the way,

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Speaker 1: if you have a money question, we want to hear

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Speaker 1: from you to how to money dot com, slash ask

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Speaker 1: for instructions, or record your question on the voicemail app

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Speaker 1: on your phone and email it over to us at

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Speaker 1: how to moneypot at gmail dot com. We always say,

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Speaker 1: and this is true, this always remains. The weirder the better,

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Speaker 1: The more funkier money question, the more likely we'll take

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Speaker 1: it here on the show.

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Speaker 2: Hope ill me next week. The more interpersonal the better too,

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Speaker 2: Like I like diving into that interpersonal relationship sort of

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Speaker 2: drama and how money impacts your life in that way

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Speaker 2: that loves the drama he does. Okay, let's get to

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Speaker 2: a question, Matt specifically about our money gears and whether

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Speaker 2: or not we screried up.

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Speaker 3: Hi, Matt and Joel. I'm Jonathan from Lincoln, Nebraska. I

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Speaker 3: was recently listening to your episode where you restated the

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Speaker 3: money gears, and I just kept thinking to myself, why

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Speaker 3: is Geared two before Gear three? I would think paying

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Speaker 3: off high interest that would be more important than investing

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Speaker 3: in a four oh one K with some match from employers.

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Speaker 3: Am I just thinking of it wrong? Can you guys

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Speaker 3: explain things for all you guys to love the show?

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Speaker 2: Oh? So, Jonathan gets right at the heart of it

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Speaker 2: and he said, in't that better than some match? And

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Speaker 2: that's we'll kind of we'll stretch it out here instead

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Speaker 2: of just giving you a one word response.

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Speaker 1: You don't want to just go with the mom tactic

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Speaker 1: and be like because I guess no, no, it feels

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Speaker 1: reasonable at this point, Matt just well to shame him

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Speaker 1: into submission.

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Speaker 2: That's not what we try to do here. We try

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Speaker 2: to lift people upgel But Jonathan, like, I totally get it,

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Speaker 2: Like I understand why paying off credit card debt, especially

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Speaker 2: when we're seeing indust rates in the twenty percent range

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Speaker 2: or more like, why that sounds like the smarter thing

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Speaker 2: to do before you start investing at all. But that's

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Speaker 2: not the case. It's our belief that if you are

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Speaker 2: offered a match from your employer funding your four oh

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Speaker 2: one K, and I will say up to that point

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Speaker 2: and not investing beyond that, that takes precedence over paying

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Speaker 2: down your credit cards. Certainly, the goal is to do both.

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Speaker 2: But man, the getting that match specifically from your form

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Speaker 2: K that is money of your number twoyeah.

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Speaker 1: We're actually seeing this play out in policy, to Matt,

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Speaker 1: which is interesting, right that more people are starting off

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Speaker 1: when they get a new job with money being kind

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Speaker 1: of forced from their paycheck into their four O one K.

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Speaker 2: What do they chose to.

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Speaker 1: Au now, Yeah, the auto en roll and then they

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Speaker 1: can go back in there and say, wait a second, no,

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Speaker 1: I don't want that, but it's just interesting to see

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Speaker 1: how and and you know, to see how much that's

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Speaker 1: helping people in the real world who otherwise likely would

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Speaker 1: not have invested a dime just because of inertia and

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Speaker 1: a lack of interest. But kind of what you're getting

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Speaker 1: here too, Matt. You highlighted twenty percent interest rates on

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Speaker 1: credit cards, and uh, yeah, that's that's a problem in

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Speaker 1: anybody who is in sustained credit card debt. That's something

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Speaker 1: we want to help you out with. You know, we

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Speaker 1: we wanted to do our best to give you advice.

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Speaker 2: Joe's gonna help you out personally. Get about that. How

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Speaker 2: many podusts send a few.

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Speaker 1: Hundreds in in unmarked envelope directly to your home. But

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Speaker 1: you know that this is just that a fifty percent

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Speaker 1: to one hundred percent return, that's typically what a matches,

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Speaker 1: which is better than a twenty percent return.

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Speaker 2: Which get what you're getting on credit cards. Yep, it's

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Speaker 2: not just some match. It is a significant amount, a

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Speaker 2: significant percentage higher than what it is that you are

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Speaker 2: likely paying on your credit card.

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Speaker 1: Like I've never heard of an employer give me a

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Speaker 1: ten percent match right, Oh, if you put in six percent,

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Speaker 1: we'll put in zero point six percent. I've never heard

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Speaker 1: of that, like, it doesn't it doesn't exist. And if you,

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Speaker 1: if you have an employer like that, let me know,

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Speaker 1: because I'd be curious.

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Speaker 2: Get out of there.

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Speaker 1: But it's almost always one hundred percent or fifty percent. Right,

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Speaker 1: you put in six, you get six, You put in six,

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Speaker 1: you get three, something along those lines. And that is

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Speaker 1: just a better straight up per turn then paying down

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Speaker 1: your credit card debt, which, of course we still loathe,

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Speaker 1: we hate credit card debt. We'd love to see no

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Speaker 1: Americans know how to money listeners with credit card debt

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Speaker 1: at all. And of course this means that credit card

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Speaker 1: debt paying it off remains an incredibly high priority in

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Speaker 1: the grand scheme of things, because when you think it's

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Speaker 1: like that the basic e fund, then the match, then

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Speaker 1: it's credit card debt. I mean that is that is

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Speaker 1: the next thing on the list.

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Speaker 2: But three comes after two. Yes, we'll get to that later.

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Speaker 1: It just doesn't quite rise above accepting and making sure

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Speaker 1: you're taking full advantage of the generous match, because there's

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Speaker 1: just no other place in life where you get a

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Speaker 1: return that high on your money. Of course, though, after

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Speaker 1: you get the match, every single spare dollar should be

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Speaker 1: going to eradicate the credit card debt as quickly as possible.

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Speaker 1: Whether you're choosing the snowball the avalanche method, that's up

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Speaker 1: to you pick whichever one's going to motivate you allow

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Speaker 1: you paid off most quickly, But the match is still

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Speaker 1: key here. Once you get past that match.

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Speaker 2: Essentially, what you're banking on only at that point are

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Speaker 2: the returns that you're expecting to see in the market, right,

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Speaker 2: And that's when you would say, no, I'll take the

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Speaker 2: guaranteed twenty three percent return on my money because that's

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Speaker 2: when my credit card and straight over a fingers crossed

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Speaker 2: ten percent return that you might historically see in the market.

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Speaker 1: I think the SMP had a great year last year. Still,

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Speaker 1: credit card debt, if you had it, was worse, was

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Speaker 1: more detrimental than investing in the sp was beneficial, exactly.

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Speaker 2: And another reason too that you want to prioritize the

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Speaker 2: four and K match is because of the fact that

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Speaker 2: this is an instant return on your money. This isn't

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Speaker 2: just something like when you look at credit card debt,

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Speaker 2: you're looking at an annualized twenty three percent interest that

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Speaker 2: you're making, which means that you're not experiencing that in

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Speaker 2: one fell swoop as opposed to the match. And so

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Speaker 2: there's a difference there between being able to get that

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Speaker 2: match let's say it doesn't quite work this way, but

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Speaker 2: like earlier in the year, as opposed to whittling down

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Speaker 2: the amount of interest that you're paying towards your credit

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Speaker 2: cards as well. So that's something to keep in mind.

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Speaker 2: We certainly don't want you to take on additional credit

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Speaker 2: card debt. Keep that at a minimum, right and hopefully

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Speaker 2: that's the trajectory you're on, because if you've gone from

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Speaker 2: money year number one, where you've got that basic emergency

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Speaker 2: fund and now you're like, all right, now now it's

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Speaker 2: time to invest. Now I've got a little bit more margin,

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Speaker 2: I've got more coming in. Then I'm spending great stabilize,

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Speaker 2: maintain those minimum payments on that credit card, get that match.

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Speaker 2: But then after that, like you said, Joel, that's when

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Speaker 2: you want to focus on knocking out that credit card debt.

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Speaker 1: I think for some people who feel like they're living

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Speaker 1: on the financial precipice, they're living on the edge. They

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Speaker 1: feel like they can't do both at the same time,

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Speaker 1: like I can't, I can barely even get the full match,

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Speaker 1: and if I do get the full match, that I'm

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Speaker 1: just paying minimums on all the credit cards. And that's

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Speaker 1: a tough spot to be in, I think especially it

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Speaker 1: can be demoralizing from just a personal finance goal standpoint.

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Speaker 1: And I think if you find yourself in that category

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Speaker 1: right where you, like I can't invest and pay down

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Speaker 1: credit card debt at the same time, then maybe for

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Speaker 1: that person, even if the fully most optimized thing to

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Speaker 1: do is to get the match, I could see a

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Speaker 1: scenario in which somebody might opt to make a different

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Speaker 1: decision and to say, I'm gonna I had like the debt.

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Speaker 1: It's causing me stress, it's causing me to lose sleep

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Speaker 1: at night. And yeah, I hear your optimization, your call

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Speaker 1: for optimization, guys, but I feel the need in my

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Speaker 1: own personal life for peace of mind to pay down

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Speaker 1: the credit card debt more quickly, and I just I

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Speaker 1: do think for some people that might be the right move.

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Speaker 1: That's not the most optimized moove. So that's not why

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Speaker 1: we call it out in the money gears, But some

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Speaker 1: people pivoting and choosing a different tactic as long as

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Speaker 1: you do it with eyes wide open realizing what you're

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Speaker 1: missing out on. You can never go back and get

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Speaker 1: that match from previous years that you didn't get you

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Speaker 1: As long as you know that upfront, I understand why

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Speaker 1: some people might make a different decision.

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Speaker 2: Yeah, what you're speaking to is the fact that personal

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Speaker 2: finance is emotional and that there are not Like, if

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Speaker 2: it was just all about the numbers and returns and

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Speaker 2: which number is bigger, let's go with that, then you

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Speaker 2: would not have ever gotten yourself into credit card debt

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Speaker 2: in the first place. Yeah, but it goes far beyond

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Speaker 2: just looking at the numbers and making a purely rational decision.

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Speaker 2: And what you're saying though, like you're talking about a

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Speaker 2: window of time. That is a great argument for getting

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Speaker 2: the match, because you got to realize, Man, I would

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Speaker 2: hate for somebody to be in a situation where they're saying, Okay, no,

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Speaker 2: this is weighing on me. I'm just gonna go full bore,

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Speaker 2: pull hog whatever. I'm going to attack this credit card debt.

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Speaker 2: You work on it for the entire year, you find

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Speaker 2: your way into twenty twenty seven is January. End of January,

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Speaker 2: You're like, yes, I've eliminated all my credit card debt. Okay,

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Speaker 2: let me get that four one K match. Well, dang it,

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Speaker 2: you just missed the cutoff by one month to contribute

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Speaker 2: to your four win K where your employer would have

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Speaker 2: made that match. That, like you said, Joel, was a

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Speaker 2: window of time that was closing. So that's something that

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Speaker 2: you do need to be aware of. I just don't

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Speaker 2: want someone to fund themselves in that kind of of

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Speaker 2: a situation where they're only pacifying the sort of emotional

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Speaker 2: needs that they have and the sort of weight that

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Speaker 2: that debt is essentially weighing them down. But speaking of

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Speaker 2: windows of time, that's a reason to maybe not invest

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Speaker 2: in your four win K because if your employer has

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Speaker 2: a longer vesting period, well that's something else you need

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Speaker 2: to be aware of you too. And if you're not

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Speaker 2: expecting to be at that employer for all that much longer,

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Speaker 2: we'll shoot no, go ahead and focus on the credit

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Speaker 2: card debt because you're not going to get the four

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Speaker 2: win K match anyway.

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Speaker 1: So the vesting period is five years and they're like, yeah,

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Speaker 1: we're giving you one hundred percent match on your six

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Speaker 1: percent contribution.

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Speaker 2: You're like, that's awesome.

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Speaker 1: Them But if I'm only planning on being at that

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Speaker 1: employer for two to three years, not even close to

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Speaker 1: that five year deadline, well that's match money I'm never

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Speaker 1: going to see. Even if it looks like I looks

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Speaker 1: like it's coming my way.

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Speaker 2: It's not in that sense, you'd be better off just yeah,

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Speaker 2: attacking the twenty percent credit card debt.

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Speaker 1: Yeah, yeah, so know those details as well. That matters

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Speaker 1: as to which choice you make. And the ultimate goal

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Speaker 1: is to stop the biggest personal finance leaks that happen

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Speaker 1: in your life, right, recurring credit card debt being a

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Speaker 1: nefarious form of that that what half of Americans essentially

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Speaker 1: who use credit cards subscribe to. They don't use their

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Speaker 1: credit cards, well they're they're using them like clockwork, and

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Speaker 1: they can't pay off their bills every month, and because

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Speaker 1: of that, they're finding they're digging themselves into a bigger hole.

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Speaker 1: But if you can stop that leak and pay off

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Speaker 1: credit card debt while simultaneously taking advantage of this helping

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Speaker 1: hand in the match, that's going to supercharge your ability

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Speaker 1: to build wealth. Do both and just make sure this

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Speaker 1: is like we make that clear in the money gears

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Speaker 1: as well. Don't invest beyond the match until credit card

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Speaker 1: debt is fully gone from your life. But I think

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Speaker 1: this is a great question from Jonathan. I think this

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Speaker 1: is confusing to a lot of people, and hopefully we

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Speaker 1: addressed not just the some of the numbers percent is

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Speaker 1: better than twenty percent, but also the kind of behavioral

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Speaker 1: realities that people face behind that conundrum.

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Speaker 2: That's right, man, all right, we've got more to get to.

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Speaker 2: We're gonna hear from a listener who is trying to

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Speaker 2: figure out which four three B to go with. We're

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Speaker 2: gonna talk about gold later on all of that and

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Speaker 2: more right after this.

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Speaker 1: All right, Matt, we're back. We've got more money questions

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Speaker 1: to get to. Let's get to one right now. Let's

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Speaker 1: get to a question specifically about how to handle inheritance money.

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Speaker 4: Hello, Matt and Joel, this is Jay the Actor. If

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Speaker 4: you're a call, I left the message to you about

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Speaker 4: my inheritance that I've gotten that I'm what to do

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Speaker 4: with the money. That's me a quick question. So I

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Speaker 4: know you don't like banks. I do have c IT,

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Speaker 4: thank you, and I'm wondering what to do with the

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Speaker 4: with my inheritance money. So I'm down to thirty thousand.

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Speaker 4: I got sixty thousand, and I spent most of that

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Speaker 4: on rent and other things. But let me say, I've

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Speaker 4: got clarity. I've got so much clarity, and you know

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Speaker 4: that I decided to diversify my acting and go into

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Speaker 4: voice acting. Also, I love Hollywood, love movies, but you know,

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Speaker 4: not everyone's working, you know. I mean there's so much

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Speaker 4: money being pumped into ads, TV, podcasts and radio and

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Speaker 4: so many places with gasoline stations, so they need actors

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Speaker 4: to sell products and I can do that. So anyway,

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Speaker 4: I'm diversifying to that. And I'm also going back to

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Speaker 4: work full time right now while I'm trying to build

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Speaker 4: my voice over or business. So uh yeah, I just

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Speaker 4: want to touch guys on that. So yeah, what do

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Speaker 4: I do with you know? Should I take it all

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Speaker 4: out of Bank of America and put it into CIT

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Speaker 4: which I do have my emergency fund there. I mean,

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Speaker 4: I do need to occasionally pull money from my inheritance

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Speaker 4: just because you know, I my rent is expensive, but

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Speaker 4: I did pay off my credit card debt. I have

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Speaker 4: my roth IRA of eight thousand something I will open.

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Speaker 4: I do plan on opening a solo four oh one k.

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Speaker 4: But how should I transfer that money, and what do

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Speaker 4: I do if I need some while I'm working, you know,

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Speaker 4: as you know. I mean, I've been working in acting.

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Speaker 4: But boys, it's slow, It's really slow, you know, and

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Speaker 4: it's it's a highly subjective. So should I just put

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Speaker 4: it all into c Should I just have a checking

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Speaker 4: accounted Bank of America? Should I just abolish your Bank

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Speaker 4: of America for my banking? These in general stuff like that.

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Speaker 4: All right, let me know, by the way, I do

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Speaker 4: love the show and I do my best to learn

401
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Speaker 4: as much as I can as an artist. Thank you

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Speaker 4: so much.

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Speaker 2: All right, Joel, this is Jay who we heard from

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Speaker 2: last fall. Jay, thank you for sending us a follow

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Speaker 2: up voice memo. Jay the actor love the update. And

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Speaker 2: the truth is, Matt, I love updates. And these are

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Speaker 2: the These are the kind of questions that like persist,

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Speaker 2: right someone starting, they get a big lump sum, they're

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Speaker 2: trying to make decisions and then they're, you know, halfway

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Speaker 2: through the process, and what now, which direction is my

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Speaker 2: runner pointer in? Yeah? By the way, Jay, you said

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Speaker 2: that we hate banks. I don't hate banks. Joel hates banks. No,

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Speaker 2: I don't. No, specifically, it's the really big banks that

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Speaker 2: we're not fans of you, said that you're with c

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Speaker 2: I T we love them. They are fantastic, the online

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Speaker 2: banks with essentially no fees, they are the best place

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Speaker 2: to put your savings. And uh so I just want

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Speaker 2: to provide a little bit of a clarity there. Also

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Speaker 2: on the note of clarity, he said he's got that

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Speaker 2: now and he's diversifying his income, which I really appreciate, right,

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Speaker 2: doing some of the voiceover work in addition to acting.

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Speaker 2: I think he said too that he is he picked

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Speaker 2: up another like a full time while he's trying to

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Speaker 2: launch the movie business voice acting career as well or

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Speaker 2: the voiceover career, which I think is a super clutch move,

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Speaker 2: especially being that you are in an industry that's incredibly

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Speaker 2: erratic as far as the amount of money that you

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Speaker 2: might be able to generate from that. It's always nice

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Speaker 2: to pursue something else like that while also having something

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Speaker 2: that's going to be able to pay the bills. But yeah,

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Speaker 2: maybe we'll actually hear your voice on one of the

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Speaker 2: generic ads that run that run on our podcast, maybe

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Speaker 2: off a the Zion. We'll be like, wait a minute,

434
00:20:44,520 --> 00:20:45,359
Speaker 2: is how much would that be?

435
00:20:45,880 --> 00:20:48,320
Speaker 1: So I was talking to my oldest daughter about this

436
00:20:48,560 --> 00:20:50,080
Speaker 1: randomly on the way.

437
00:20:49,960 --> 00:20:50,840
Speaker 2: To school the other day.

438
00:20:50,960 --> 00:20:54,240
Speaker 1: She was voiceover stuff not just about being about actresses,

439
00:20:54,280 --> 00:20:55,760
Speaker 1: how much money they make and stuff like that.

440
00:20:55,800 --> 00:20:56,680
Speaker 2: She's just curious.

441
00:20:57,080 --> 00:21:00,440
Speaker 1: And it's really easy to think, as it can consumer

442
00:21:01,080 --> 00:21:03,920
Speaker 1: of media, that a lot of people in the ind

443
00:21:04,119 --> 00:21:07,480
Speaker 1: industry are making tons of money. And the truth is

444
00:21:07,520 --> 00:21:09,720
Speaker 1: a very small percentage of people who work in the

445
00:21:09,720 --> 00:21:12,119
Speaker 1: industry are making tons of money. And then there is

446
00:21:12,240 --> 00:21:15,720
Speaker 1: a whole slew of people who work in support roles

447
00:21:15,840 --> 00:21:19,119
Speaker 1: and have played bit parts in a bunch of the

448
00:21:19,160 --> 00:21:23,280
Speaker 1: productions that we see, whose names and faces you would

449
00:21:23,320 --> 00:21:27,960
Speaker 1: not recognize, who you know they live kind of like

450
00:21:28,160 --> 00:21:32,600
Speaker 1: giving my daily bread sort of existence, hoping for the

451
00:21:32,640 --> 00:21:36,000
Speaker 1: next gig. And and just I guess just puts it

452
00:21:36,040 --> 00:21:38,760
Speaker 1: in perspective that most people, the vast majority of people

453
00:21:39,040 --> 00:21:43,320
Speaker 1: in Hollywood, pursuing the passion that they love, the artistic

454
00:21:43,320 --> 00:21:46,959
Speaker 1: commitment they have, actually outweighs the monetary benefit that they

455
00:21:47,000 --> 00:21:47,960
Speaker 1: receive lots of times.

456
00:21:48,160 --> 00:21:52,240
Speaker 2: Ye, so as is the path with artists. Most artists,

457
00:21:52,320 --> 00:21:54,840
Speaker 2: honestly like it's the very few who are able to

458
00:21:55,960 --> 00:21:58,000
Speaker 2: get pretty wealthy off of their art.

459
00:21:58,119 --> 00:21:59,960
Speaker 1: Yeah, it's just easy to have that assumption that like

460
00:22:00,040 --> 00:22:02,640
Speaker 1: everybody's crushing it in Hollywood, and the truth is no, no, no,

461
00:22:02,680 --> 00:22:06,560
Speaker 1: Like most people have two, three, multiple jobs, right, trying

462
00:22:06,600 --> 00:22:09,160
Speaker 1: to make ends meet, and okay.

463
00:22:09,040 --> 00:22:11,440
Speaker 2: Not everybody hits it like flow from Progressive.

464
00:22:12,119 --> 00:22:13,879
Speaker 1: Well, yeah, that's such a really good gig, right to

465
00:22:13,960 --> 00:22:17,320
Speaker 1: have the insurance spokesperson, which lasts for many, many years,

466
00:22:17,359 --> 00:22:19,439
Speaker 1: and once you're inenturnched, you get paid a lot of money.

467
00:22:19,800 --> 00:22:23,159
Speaker 1: But the bare minimum thing I think Jay would be

468
00:22:23,200 --> 00:22:25,640
Speaker 1: to take all of your money out of Bank of America.

469
00:22:25,400 --> 00:22:28,040
Speaker 2: And to put it into ci T. He said, should

470
00:22:28,040 --> 00:22:29,480
Speaker 2: I abolish Bank of America? Yes?

471
00:22:29,600 --> 00:22:32,800
Speaker 1: Yes, the answer is you should. We think all how

472
00:22:32,800 --> 00:22:35,320
Speaker 1: to money listeners and even people who don't listen but

473
00:22:35,359 --> 00:22:37,639
Speaker 1: who will never know, we said this should abolish the

474
00:22:37,640 --> 00:22:40,040
Speaker 1: big banks from their lives. And I think that's just

475
00:22:40,600 --> 00:22:44,240
Speaker 1: the most That's a crucial move that you can make

476
00:22:44,359 --> 00:22:47,320
Speaker 1: really quickly that will eliminate you know, leakage fees coming

477
00:22:47,400 --> 00:22:50,200
Speaker 1: from the Bank of America account and you know crummy

478
00:22:50,480 --> 00:22:53,200
Speaker 1: interest rates that you're getting on a not insubstantial amount

479
00:22:53,200 --> 00:22:53,560
Speaker 1: of money.

480
00:22:53,640 --> 00:22:55,720
Speaker 2: Yeah. Actually, just listening to him, I wonder if one

481
00:22:55,760 --> 00:22:58,760
Speaker 2: of his concerns was the fact that he's thinking I'm

482
00:22:58,800 --> 00:23:02,080
Speaker 2: gathering that that Jay is a little bit older. So

483
00:23:02,119 --> 00:23:05,400
Speaker 2: based on the fact that he said his rough contributions

484
00:23:05,840 --> 00:23:08,199
Speaker 2: he said eight thousand something, I means he's over fifty,

485
00:23:08,240 --> 00:23:10,920
Speaker 2: that's right, which means I think he's just he's a

486
00:23:10,960 --> 00:23:13,120
Speaker 2: little bit older. Otherwise the max contribution will be sony

487
00:23:13,119 --> 00:23:15,000
Speaker 2: five hundred this year exactly. Yeah, so he's a little

488
00:23:15,000 --> 00:23:17,080
Speaker 2: bit older, which tells me that I think he's thinking through, well,

489
00:23:17,119 --> 00:23:19,119
Speaker 2: how do I get cash out of there? If I

490
00:23:19,160 --> 00:23:21,800
Speaker 2: need some cash? And if that's the case, I mean,

491
00:23:22,280 --> 00:23:24,400
Speaker 2: there's so many ways you can get around that if

492
00:23:24,440 --> 00:23:28,560
Speaker 2: you are the ability to transfer money to the different accounts,

493
00:23:28,640 --> 00:23:31,080
Speaker 2: different bills that you need to pay to, even a

494
00:23:31,080 --> 00:23:33,960
Speaker 2: credit card. He didn't mention that, but I mean, I

495
00:23:34,000 --> 00:23:36,639
Speaker 2: don't use cash at all, and I don't know very

496
00:23:36,680 --> 00:23:38,879
Speaker 2: few folks do. But I was wondering if that was

497
00:23:38,920 --> 00:23:41,040
Speaker 2: a part of what he was asking, as far as like, oh,

498
00:23:41,040 --> 00:23:43,359
Speaker 2: but how do I actually get some cash out of

499
00:23:43,400 --> 00:23:43,920
Speaker 2: the account?

500
00:23:43,960 --> 00:23:45,679
Speaker 1: But I think I don't know, Matt, and listening to

501
00:23:45,760 --> 00:23:48,200
Speaker 1: Jay's question, The most important piece of advice I think

502
00:23:48,200 --> 00:23:52,399
Speaker 1: we can offer is to not allow this inheritance to

503
00:23:52,440 --> 00:23:55,639
Speaker 1: be a leaky faucet to not let it go out

504
00:23:55,720 --> 00:23:58,960
Speaker 1: in dribs and drabs, in small bits and pieces from

505
00:23:59,040 --> 00:24:02,000
Speaker 1: your life, finding looking up six, eight, twelve months from now,

506
00:24:02,359 --> 00:24:04,920
Speaker 1: and then seeing that the inheritance that could have set

507
00:24:04,960 --> 00:24:08,119
Speaker 1: you up for financial success and more financial independence and

508
00:24:08,200 --> 00:24:09,879
Speaker 1: less need to take gigs that you don't want to

509
00:24:10,840 --> 00:24:13,840
Speaker 1: is gone. Right, You've just spent it all here and

510
00:24:13,880 --> 00:24:16,240
Speaker 1: there trying to cover things like the rent you mentioned

511
00:24:16,480 --> 00:24:20,840
Speaker 1: jayrent being expensive. Well, the thing that's not untrue, right,

512
00:24:21,200 --> 00:24:23,919
Speaker 1: of course, it is, especially being out there in Hollywood.

513
00:24:24,160 --> 00:24:26,760
Speaker 1: But the thing we want to avoid is slowly tapping

514
00:24:26,760 --> 00:24:29,439
Speaker 1: the inheritance until it runs out, because it feels like

515
00:24:29,480 --> 00:24:32,200
Speaker 1: a warm security blanket right now, but it can quickly

516
00:24:32,400 --> 00:24:34,200
Speaker 1: be gone if you don't come up with a plan.

517
00:24:34,520 --> 00:24:38,760
Speaker 1: And I think like a warning, just a person that

518
00:24:38,800 --> 00:24:40,960
Speaker 1: I've talked to that's experienced something like this, that could

519
00:24:40,960 --> 00:24:43,120
Speaker 1: be a warning to you. If you listened to episode

520
00:24:43,640 --> 00:24:46,879
Speaker 1: ten forty. We talked to Justin from the Price of

521
00:24:46,920 --> 00:24:50,600
Speaker 1: Avocado Toast. He had a much much bigger inheritance, right,

522
00:24:50,640 --> 00:24:52,639
Speaker 1: and he talks about how he didn't do all stupid

523
00:24:52,640 --> 00:24:54,840
Speaker 1: stuff with it, but he did a lot of stupid

524
00:24:54,880 --> 00:24:57,960
Speaker 1: stuff with it, and how it could have completely changed

525
00:24:58,000 --> 00:25:00,000
Speaker 1: his life and set him up for if he knew

526
00:25:01,000 --> 00:25:03,359
Speaker 1: then what he knows now, it would have been a

527
00:25:03,359 --> 00:25:06,240
Speaker 1: game changer, like he could have been financially independent. And

528
00:25:06,320 --> 00:25:08,919
Speaker 1: I think the same thing is true here, Jane, not

529
00:25:08,960 --> 00:25:11,120
Speaker 1: to the same extent because it's not the same overall

530
00:25:11,200 --> 00:25:13,720
Speaker 1: dollar amount, but there's just so much good you can

531
00:25:13,760 --> 00:25:15,879
Speaker 1: do with it, like the roth Ira, as long as

532
00:25:15,920 --> 00:25:20,520
Speaker 1: you're not petering it away a little bit by a

533
00:25:20,520 --> 00:25:23,960
Speaker 1: little bit month after month, you really can change your life.

534
00:25:24,080 --> 00:25:26,200
Speaker 2: Yeah, totally. The fact that he paid off his credit

535
00:25:26,200 --> 00:25:29,320
Speaker 2: card debts great, stuck some money and his wrath is great,

536
00:25:30,000 --> 00:25:34,320
Speaker 2: But these are like one time actions that he has done. Right.

537
00:25:34,440 --> 00:25:37,680
Speaker 2: So I think last time when we took his question,

538
00:25:38,160 --> 00:25:40,719
Speaker 2: we talked about the money gears, and specifically, I mean

539
00:25:40,800 --> 00:25:43,200
Speaker 2: essentially we laid them out as like goals for him

540
00:25:43,240 --> 00:25:47,480
Speaker 2: to achieve. But what we didn't really address or the boring,

541
00:25:47,680 --> 00:25:51,560
Speaker 2: un sexy habits and the discipline that allow you to

542
00:25:51,600 --> 00:25:53,320
Speaker 2: be able to achieve those goals. Like it makes me

543
00:25:53,359 --> 00:25:55,919
Speaker 2: think about running, Joel, and like somebody who hasn't run

544
00:25:55,960 --> 00:25:57,119
Speaker 2: before is like, oh, I want to be able to

545
00:25:57,160 --> 00:26:01,199
Speaker 2: run a five k or ten k, Like that's awesome.

546
00:26:01,280 --> 00:26:03,200
Speaker 2: And it's great to know that, like you can achieve

547
00:26:03,240 --> 00:26:05,480
Speaker 2: these things. But I think what we're talking about now

548
00:26:06,000 --> 00:26:07,639
Speaker 2: is how can you actually get to the point to

549
00:26:07,640 --> 00:26:09,280
Speaker 2: where you can move on to the next money gear,

550
00:26:09,280 --> 00:26:11,880
Speaker 2: and not just to do the money gear once, right,

551
00:26:12,000 --> 00:26:15,040
Speaker 2: like he funded his roth Ira last year or maybe

552
00:26:15,080 --> 00:26:17,280
Speaker 2: a beginning of this year, but to do it next

553
00:26:17,359 --> 00:26:19,160
Speaker 2: year and the year after that, yeah, and the year

554
00:26:19,200 --> 00:26:20,960
Speaker 2: after that. What I don't like hearing is that it

555
00:26:20,960 --> 00:26:24,440
Speaker 2: sounds like he's on this trajectory of oh, like he

556
00:26:24,520 --> 00:26:29,880
Speaker 2: mentioned his rent, like you gave yourself away, like admitting

557
00:26:30,000 --> 00:26:32,240
Speaker 2: that your cost of living is high, especially when it

558
00:26:32,240 --> 00:26:34,560
Speaker 2: comes how much you're paying in rent. But there need

559
00:26:34,600 --> 00:26:37,200
Speaker 2: to be some of these underlying changes to make sure

560
00:26:37,640 --> 00:26:40,960
Speaker 2: that you are essentially on a good path for not

561
00:26:41,119 --> 00:26:44,040
Speaker 2: just next year, but for years decades on down the road.

562
00:26:44,080 --> 00:26:45,919
Speaker 2: And essentially what we're talking about here is putting together

563
00:26:46,000 --> 00:26:48,040
Speaker 2: a plan what it is that you should be doing

564
00:26:48,080 --> 00:26:50,840
Speaker 2: with your money right, Like these are the going back

565
00:26:50,880 --> 00:26:54,040
Speaker 2: to the running analogy. That's the like make sure you

566
00:26:54,040 --> 00:26:56,000
Speaker 2: get enough sleep, make sure you're eating well, make sure

567
00:26:56,160 --> 00:26:59,160
Speaker 2: like you've got a decent training plan, And a big

568
00:26:59,200 --> 00:27:01,280
Speaker 2: part of that that we don't hear you discussing is

569
00:27:01,359 --> 00:27:04,280
Speaker 2: essentially a budget where you are able to look ahead

570
00:27:04,280 --> 00:27:06,720
Speaker 2: and say, yeah, I see that I'm going to have

571
00:27:06,720 --> 00:27:09,200
Speaker 2: this much money to set aside, not just for rent,

572
00:27:09,240 --> 00:27:11,400
Speaker 2: but for these other financial goals that I might have.

573
00:27:12,160 --> 00:27:14,639
Speaker 2: That I think is sort of the next step for you,

574
00:27:14,720 --> 00:27:17,439
Speaker 2: which doesn't exist within the money gear framework, right, but

575
00:27:17,480 --> 00:27:21,200
Speaker 2: it's something that you should have essentially, like sprinkled all

576
00:27:21,240 --> 00:27:23,840
Speaker 2: throughout all the money gears. You are tracking your spending,

577
00:27:23,840 --> 00:27:26,919
Speaker 2: You're looking at how it is that you are essentially

578
00:27:26,920 --> 00:27:28,080
Speaker 2: whipping your money into shape.

579
00:27:28,080 --> 00:27:30,200
Speaker 1: Well, it makes me think of what we're going to

580
00:27:30,240 --> 00:27:32,080
Speaker 1: go with this analogy because you mentioned it. But one

581
00:27:32,119 --> 00:27:34,120
Speaker 1: of my middle aged dad friends was like, I want

582
00:27:34,119 --> 00:27:36,480
Speaker 1: to run a sub twenty minute five k And he

583
00:27:36,520 --> 00:27:39,679
Speaker 1: hadn't really been running at all, and one day, I

584
00:27:39,680 --> 00:27:41,200
Speaker 1: know you're talking about, he rips off like a twenty

585
00:27:41,200 --> 00:27:44,919
Speaker 1: five mile run and he's dead at the end of it,

586
00:27:45,000 --> 00:27:48,159
Speaker 1: not literally but pretty close to it, and like he

587
00:27:48,480 --> 00:27:50,480
Speaker 1: I think he just thought like I'm going to do

588
00:27:50,560 --> 00:27:52,159
Speaker 1: whatever it takes to get there. And I think that

589
00:27:52,320 --> 00:27:54,960
Speaker 1: short term mentality like I'm going to run twenty five

590
00:27:55,000 --> 00:27:56,760
Speaker 1: miles in one day so I can cause I want

591
00:27:56,760 --> 00:27:59,560
Speaker 1: to get to this goal can actually sometimes be a

592
00:27:59,600 --> 00:28:02,159
Speaker 1: defeat way of going about it, instead of creating a

593
00:28:02,200 --> 00:28:04,560
Speaker 1: sustainable plan that's going to lie you to get.

594
00:28:04,480 --> 00:28:05,040
Speaker 2: Where you want to go.

595
00:28:05,160 --> 00:28:07,840
Speaker 1: Yeah, and you also have to realize that it's not easy,

596
00:28:08,000 --> 00:28:10,200
Speaker 1: like that goal of it, especially in your forties, a

597
00:28:10,240 --> 00:28:12,479
Speaker 1: sub twenty minute five K. Yeah, you can do it,

598
00:28:12,480 --> 00:28:14,280
Speaker 1: but it's going to take like a lot of time

599
00:28:14,400 --> 00:28:16,640
Speaker 1: and a lot of consistency. And that was the thing

600
00:28:16,720 --> 00:28:18,719
Speaker 1: I think he hadn't really planned on, and I think

601
00:28:18,760 --> 00:28:20,280
Speaker 1: the same thing is true for Jay. It's going to

602
00:28:20,359 --> 00:28:24,360
Speaker 1: take time and consistency and the small things to achieve

603
00:28:24,720 --> 00:28:28,399
Speaker 1: the goals that he wants, not just like blam, I

604
00:28:28,440 --> 00:28:30,800
Speaker 1: want to stick money into my roth iray last year

605
00:28:30,840 --> 00:28:31,840
Speaker 1: and that'll get it done.

606
00:28:31,800 --> 00:28:34,440
Speaker 2: This one time because he got this unexpected windfall. That's

607
00:28:34,480 --> 00:28:36,959
Speaker 2: like getting a Lance Armstrong blood infusion where you're like, oh,

608
00:28:36,960 --> 00:28:38,600
Speaker 2: one counting on that, but all of a sudden, my

609
00:28:38,640 --> 00:28:40,440
Speaker 2: performances through the roof and she's like, yeah, that's not

610
00:28:40,480 --> 00:28:42,560
Speaker 2: really sustainable. You're gonna get caught for dope. I don't know.

611
00:28:42,560 --> 00:28:44,640
Speaker 1: I guess you can keep getting those blood and fusions,

612
00:28:44,680 --> 00:28:48,080
Speaker 1: but then yeah, at some point you get caught. Yeah,

613
00:28:48,160 --> 00:28:51,400
Speaker 1: good analogy, But I think what you're getting at once

614
00:28:51,400 --> 00:28:53,160
Speaker 1: you're dig into your budget, dig into your spending, come

615
00:28:53,240 --> 00:28:55,280
Speaker 1: up with a sustainable approach to what's coming in and

616
00:28:55,280 --> 00:28:58,239
Speaker 1: what's going out. And that can be harder right when

617
00:28:58,280 --> 00:29:01,080
Speaker 1: you have a regular income like Jay does. But it's

618
00:29:01,120 --> 00:29:04,560
Speaker 1: a really important thing to know what's a typical month

619
00:29:04,680 --> 00:29:07,320
Speaker 1: look like, so you can plan for reality and know

620
00:29:07,760 --> 00:29:11,800
Speaker 1: what your budget allows, right and what it doesn't. So

621
00:29:11,920 --> 00:29:13,640
Speaker 1: maybe you should sign up for a service. I don't know,

622
00:29:13,640 --> 00:29:16,280
Speaker 1: a monarch or you need a budget. One of those two.

623
00:29:16,520 --> 00:29:20,400
Speaker 1: They're both fantastic. Unless you're super into spreadsheets, you it

624
00:29:20,480 --> 00:29:22,160
Speaker 1: might be worth it to pay for a service like

625
00:29:22,160 --> 00:29:24,320
Speaker 1: that so you can stare at your numbers directly in

626
00:29:24,360 --> 00:29:27,160
Speaker 1: the face. We don't sure track your money and you're

627
00:29:27,160 --> 00:29:31,120
Speaker 1: spending and know where everything is flowing, especially because of

628
00:29:31,120 --> 00:29:34,040
Speaker 1: that variable income, come up with a bare bones budget too,

629
00:29:34,120 --> 00:29:36,920
Speaker 1: and then be willing to cut back maybe in leaner months,

630
00:29:37,000 --> 00:29:40,080
Speaker 1: leaner times, to be able to preserve that financial margin

631
00:29:40,160 --> 00:29:43,280
Speaker 1: in your life. I think that flexibility, instead of being

632
00:29:43,320 --> 00:29:46,920
Speaker 1: totally desensitized to how much you spend and you know,

633
00:29:47,120 --> 00:29:51,560
Speaker 1: turning to the inheritance money here and there, to maybe

634
00:29:51,560 --> 00:29:54,320
Speaker 1: alleviate some of that pain. That can I think, allow

635
00:29:54,360 --> 00:29:56,920
Speaker 1: you to make small, intentional pivots in a given month

636
00:29:57,000 --> 00:29:59,120
Speaker 1: so that you can keep it intact and invested for

637
00:29:59,160 --> 00:29:59,600
Speaker 1: your future.

638
00:30:00,000 --> 00:30:01,800
Speaker 2: A right man. All right, let's hear from a listener

639
00:30:01,800 --> 00:30:03,600
Speaker 2: who's been listening to the show for a while. She's

640
00:30:03,640 --> 00:30:06,840
Speaker 2: made some positive, some changes in the right direction. Now

641
00:30:06,840 --> 00:30:08,840
Speaker 2: she's trying to figure out what to do next.

642
00:30:09,440 --> 00:30:12,200
Speaker 5: Hey, Matt and Joel, this is Nina from South Carolina.

643
00:30:12,800 --> 00:30:15,600
Speaker 5: Love listening to your podcast and don't think I would

644
00:30:15,640 --> 00:30:18,000
Speaker 5: be where I'm at now financially if it wasn't for

645
00:30:18,120 --> 00:30:20,320
Speaker 5: listening to you guys for so long, So thank you

646
00:30:20,360 --> 00:30:25,480
Speaker 5: so much. Quick question for you guys. My nonprofit employer

647
00:30:26,160 --> 00:30:29,160
Speaker 5: is now offering an addition to our four to three

648
00:30:29,240 --> 00:30:34,000
Speaker 5: B retirement plan, the option for a WROTH after tax contribution.

649
00:30:34,960 --> 00:30:38,840
Speaker 5: Should I contribute to both? Is that an option? What

650
00:30:38,920 --> 00:30:42,440
Speaker 5: are the benefits, the pros, the cons I'm currently contributing

651
00:30:42,480 --> 00:30:45,760
Speaker 5: to the four H three B Should I do this

652
00:30:45,840 --> 00:30:47,440
Speaker 5: option as well? Thanks?

653
00:30:47,480 --> 00:30:47,800
Speaker 4: Guys?

654
00:30:48,520 --> 00:30:51,960
Speaker 2: All right, let's dig into this this WROTH versus traditional

655
00:30:52,000 --> 00:30:56,280
Speaker 2: account question that Nina's got. Joel. First off, Nita, I

656
00:30:56,320 --> 00:30:59,320
Speaker 2: love that your nonprofit is making a wroth for three

657
00:30:59,320 --> 00:31:03,920
Speaker 2: B be available to you. This has become far more

658
00:31:03,920 --> 00:31:07,719
Speaker 2: common in all types of workplace retirement accounts. More than

659
00:31:07,880 --> 00:31:10,560
Speaker 2: nine and ten four one ks actually now have a

660
00:31:10,600 --> 00:31:13,320
Speaker 2: wroth option. Eight and ten employers would a four to

661
00:31:13,360 --> 00:31:16,400
Speaker 2: three B have a wroth option as well, which is awesome.

662
00:31:16,640 --> 00:31:19,200
Speaker 2: I just like anytime there's more choices available to folks

663
00:31:19,240 --> 00:31:21,200
Speaker 2: Joe where they can make their own decisions. I'm a

664
00:31:21,240 --> 00:31:22,080
Speaker 2: fan of that. Oh man.

665
00:31:22,120 --> 00:31:24,400
Speaker 1: I look back to my early days, and I'm like,

666
00:31:24,520 --> 00:31:26,880
Speaker 1: if I had a wroth war and K option available

667
00:31:26,920 --> 00:31:30,280
Speaker 1: in so many of those early years, when my income's when.

668
00:31:30,160 --> 00:31:33,120
Speaker 2: They that's when they really shine, right, that's when they shine.

669
00:31:33,120 --> 00:31:33,880
Speaker 2: That's exactly right.

670
00:31:33,920 --> 00:31:37,280
Speaker 1: Yeah, if when I was making little money, like think about,

671
00:31:37,560 --> 00:31:40,160
Speaker 1: I'd be happy to pay the ten twelve percent tax

672
00:31:40,240 --> 00:31:43,680
Speaker 1: rate essentially on those dollars going into a roth war

673
00:31:43,760 --> 00:31:46,520
Speaker 1: one K versus a traditional because I was four on K.

674
00:31:46,520 --> 00:31:48,600
Speaker 2: She's four or three B. I would have been happy too.

675
00:31:48,680 --> 00:31:50,160
Speaker 1: I would have been so happy to But I just

676
00:31:50,160 --> 00:31:52,680
Speaker 1: didn't have that ability, and the wroth war one K,

677
00:31:52,800 --> 00:31:54,920
Speaker 1: roth four or three B options were just so much

678
00:31:55,120 --> 00:31:59,160
Speaker 1: more limited ten, twelve, fifteen years ago, see right, increased

679
00:31:59,240 --> 00:32:03,240
Speaker 1: choice is is nice and so yeah, I mean so

680
00:32:03,360 --> 00:32:06,880
Speaker 1: much of what you choose to do depends on your

681
00:32:06,960 --> 00:32:10,440
Speaker 1: current tax rate and also where your career and earnings

682
00:32:10,480 --> 00:32:12,719
Speaker 1: are headed. And this takes a little bit of like

683
00:32:13,200 --> 00:32:15,920
Speaker 1: looking into the crystal ball or just kind of making

684
00:32:15,960 --> 00:32:21,040
Speaker 1: some assumptions, and that's not you can't do that perfectly simultaneously.

685
00:32:21,240 --> 00:32:24,520
Speaker 2: I'm sure you working as an entry level radio producer,

686
00:32:24,960 --> 00:32:27,920
Speaker 2: you could probably like crystal ball enough to be like,

687
00:32:28,040 --> 00:32:30,960
Speaker 2: I think I might make more or like in years.

688
00:32:30,720 --> 00:32:32,720
Speaker 1: From actually, if I don't make more in the next

689
00:32:32,760 --> 00:32:35,040
Speaker 1: three four five years, I'm going to be doing something else.

690
00:32:35,480 --> 00:32:37,880
Speaker 1: And so I at least knew that much that like

691
00:32:38,240 --> 00:32:40,120
Speaker 1: I was willing to work a job for less paid

692
00:32:40,160 --> 00:32:42,040
Speaker 1: than I loved, but I also knew that at some

693
00:32:42,120 --> 00:32:44,000
Speaker 1: point I wanted to start a family and my income

694
00:32:44,080 --> 00:32:46,840
Speaker 1: was going to have to go up in one way

695
00:32:46,920 --> 00:32:49,560
Speaker 1: or another. And so yeah, if you find yourself in

696
00:32:49,640 --> 00:32:53,760
Speaker 1: that boat, Nina, I think that at least can add

697
00:32:53,800 --> 00:32:57,120
Speaker 1: some can shine some light on which which route's best

698
00:32:57,120 --> 00:32:57,400
Speaker 1: for you.

699
00:32:57,440 --> 00:32:59,440
Speaker 2: And yeah, yeah, I think for other hew of money

700
00:32:59,440 --> 00:33:02,200
Speaker 2: listeners who find themselves in that boat right where they

701
00:33:02,200 --> 00:33:05,560
Speaker 2: are hoping or or they are just able to sort

702
00:33:05,560 --> 00:33:07,040
Speaker 2: of look at the career track that they're on and

703
00:33:07,080 --> 00:33:11,600
Speaker 2: they know, hey, my income is going to rise significantly. Well, yeah,

704
00:33:11,640 --> 00:33:14,520
Speaker 2: taking advantage of that low tax bracket, taking advantage of that,

705
00:33:14,520 --> 00:33:17,120
Speaker 2: contributing to a WROTH for one K or a WROTH

706
00:33:17,160 --> 00:33:19,760
Speaker 2: for three B in those early years can be a

707
00:33:19,800 --> 00:33:22,160
Speaker 2: really nice move. And so if you find yourself in

708
00:33:22,160 --> 00:33:24,920
Speaker 2: that twelve percent tax bracket in particular, I think it's

709
00:33:24,960 --> 00:33:27,880
Speaker 2: just a no brainer to choose the WROTH four to

710
00:33:27,920 --> 00:33:31,400
Speaker 2: three B option over the traditional. Like a lot of

711
00:33:31,400 --> 00:33:33,680
Speaker 2: times when folks are trying to weigh some of the

712
00:33:33,720 --> 00:33:37,080
Speaker 2: options between like okay, well I'm thinking about that versus

713
00:33:37,240 --> 00:33:38,920
Speaker 2: doing my own thing. Like we would tell you to

714
00:33:38,920 --> 00:33:42,440
Speaker 2: look at expense ratios. But most likely you've got the

715
00:33:42,440 --> 00:33:45,680
Speaker 2: same brokerage that's servicing both the traditional and the WROTH.

716
00:33:45,720 --> 00:33:49,160
Speaker 2: There's just essentially two different buckets within the same retirement

717
00:33:49,160 --> 00:33:52,000
Speaker 2: plan that you've got available there to you. So it's

718
00:33:52,040 --> 00:33:54,560
Speaker 2: not about that, it's just more about, oh, what does

719
00:33:54,560 --> 00:33:57,440
Speaker 2: the future hold, Like where does my income line up

720
00:33:57,480 --> 00:33:59,280
Speaker 2: to what I expect it to be off in the future.

721
00:33:59,520 --> 00:34:02,960
Speaker 1: Yeah, Matt, And of course that twelve percent tax bracket

722
00:34:02,960 --> 00:34:06,400
Speaker 1: that's essentially up to the one hundred thousand dollars earning mark,

723
00:34:06,520 --> 00:34:09,000
Speaker 1: and it's half that for single filers.

724
00:34:09,360 --> 00:34:11,680
Speaker 2: So yeah, so think about, well, what's.

725
00:34:11,520 --> 00:34:15,120
Speaker 1: My income, like, what's my if married, what's my joint

726
00:34:15,160 --> 00:34:19,200
Speaker 1: income with my spouse? Are adjusted gross income in particular.

727
00:34:19,680 --> 00:34:22,120
Speaker 1: And so you said that you work at a nonprofit.

728
00:34:22,480 --> 00:34:25,479
Speaker 1: My wife does as well. And I know this from

729
00:34:25,520 --> 00:34:28,279
Speaker 1: personal experience in our family that nonprofit salaries they're not

730
00:34:28,440 --> 00:34:32,360
Speaker 1: always mind blowing, they're not always like that's that's not

731
00:34:32,480 --> 00:34:34,680
Speaker 1: the reason most people choose to work at a nonprofit

732
00:34:34,800 --> 00:34:38,680
Speaker 1: is because they're going to just make a ridiculously sick income,

733
00:34:38,760 --> 00:34:43,080
Speaker 1: That's right, Which means nonprofit workers are are even more

734
00:34:43,160 --> 00:34:46,799
Speaker 1: likely to benefit from the Wroth option because you know,

735
00:34:47,200 --> 00:34:50,920
Speaker 1: I'm guessing they are closer to that are below potentially

736
00:34:51,200 --> 00:34:54,719
Speaker 1: that one hundred thousand dollars earning threshold. And you know,

737
00:34:54,880 --> 00:34:56,960
Speaker 1: we take that back if you're married filing jointly and

738
00:34:57,000 --> 00:34:59,200
Speaker 1: your partner makes a ton of money. If that's the case,

739
00:34:59,640 --> 00:35:02,200
Speaker 1: or or if you're one of those rare nonprofit employees

740
00:35:02,239 --> 00:35:04,920
Speaker 1: that making an incredibly great salary, then you might want

741
00:35:04,960 --> 00:35:08,080
Speaker 1: to lean more traditional kind of stay as is. But

742
00:35:08,360 --> 00:35:11,080
Speaker 1: I would let that kind of be the guiding line

743
00:35:11,440 --> 00:35:14,080
Speaker 1: if if you find yourself in that twelve percent bracket,

744
00:35:14,080 --> 00:35:15,759
Speaker 1: and that's that's the tax you're going to pay on

745
00:35:15,800 --> 00:35:18,920
Speaker 1: money you contribute to your roth IRA and you don't

746
00:35:18,960 --> 00:35:22,520
Speaker 1: need the tax break right now, pay the tax because

747
00:35:22,880 --> 00:35:27,799
Speaker 1: in all likelihood, I think you're making a smart gamble that,

748
00:35:28,040 --> 00:35:30,800
Speaker 1: Whereas if you're in a higher tax bracket, it's just

749
00:35:30,880 --> 00:35:34,719
Speaker 1: harder to make a compelling case that ROTH is inevitably

750
00:35:34,760 --> 00:35:35,320
Speaker 1: the best choice.

751
00:35:35,400 --> 00:35:38,960
Speaker 2: Yeah, yeah, unless you are one of those a nonprofit

752
00:35:39,360 --> 00:35:42,719
Speaker 2: C suite level employees, which in that I guess that

753
00:35:42,719 --> 00:35:43,719
Speaker 2: should be an oxymoron.

754
00:35:44,400 --> 00:35:46,359
Speaker 1: Some of us exist, right, and there's some blue ahead

755
00:35:46,400 --> 00:35:47,720
Speaker 1: nonprofits that make good money.

756
00:35:48,200 --> 00:35:49,120
Speaker 2: But if you are just.

757
00:35:49,120 --> 00:35:53,799
Speaker 1: An employee of a nonprofit, yeah, there's a there's a

758
00:35:53,800 --> 00:35:54,840
Speaker 1: good chance that.

759
00:35:54,760 --> 00:35:56,759
Speaker 2: It's not likely that she's raking in the cash that

760
00:35:56,800 --> 00:36:00,279
Speaker 2: she's making bank Nina also mentioned doing both, and that's

761
00:36:00,280 --> 00:36:02,560
Speaker 2: certainly a possibility as well, and it might be the

762
00:36:02,560 --> 00:36:06,640
Speaker 2: best way to go from a tax diversification perspective, also

763
00:36:06,680 --> 00:36:09,680
Speaker 2: contributing some to that traditional four or three B. It

764
00:36:09,680 --> 00:36:12,320
Speaker 2: could also allow you, again this is depending on your income,

765
00:36:12,440 --> 00:36:14,680
Speaker 2: but it could allow you to get your taxable income

766
00:36:14,880 --> 00:36:18,279
Speaker 2: down enough to where then those wroth contributions would then

767
00:36:18,320 --> 00:36:21,320
Speaker 2: be taxed at a lower effective tax rate, which is

768
00:36:21,320 --> 00:36:24,880
Speaker 2: a cool little strategy. This is called marginal tax rate targeting.

769
00:36:25,400 --> 00:36:29,080
Speaker 2: And basically, if you're close to that tax bracket threshold

770
00:36:29,160 --> 00:36:32,960
Speaker 2: that jump right like the line between two states, if

771
00:36:32,960 --> 00:36:36,880
Speaker 2: that jump takes you from twelve to twenty two percent,

772
00:36:37,120 --> 00:36:38,680
Speaker 2: well it's going to be worth running the numbers of

773
00:36:38,680 --> 00:36:41,840
Speaker 2: how much traditional contributions it would take in order to

774
00:36:41,840 --> 00:36:45,120
Speaker 2: bring your AGI down enough so that those roth contributions

775
00:36:45,160 --> 00:36:49,319
Speaker 2: are only taxed there at that twelve percent. So that's yeah,

776
00:36:49,480 --> 00:36:52,000
Speaker 2: something certainly something worth considering. I just thought of too,

777
00:36:52,080 --> 00:36:55,720
Speaker 2: the fact that I mentioned or she didn't say anything

778
00:36:55,719 --> 00:36:58,120
Speaker 2: about a roth ira, right, and so we are certainly

779
00:36:58,120 --> 00:37:01,520
Speaker 2: bigger fans of roth iras. And if you are not

780
00:37:01,680 --> 00:37:04,600
Speaker 2: already contributing to your own roth ira, I think I

781
00:37:04,600 --> 00:37:07,200
Speaker 2: would actually, if it was me, I would be looking

782
00:37:07,239 --> 00:37:10,839
Speaker 2: to prioritize that, like maybe keeping the traditional four three

783
00:37:10,880 --> 00:37:14,360
Speaker 2: B but then prioritizing the roth ira. Of course, you

784
00:37:14,360 --> 00:37:19,239
Speaker 2: get the tax diversification standpoint advantage there. In addition to that,

785
00:37:19,320 --> 00:37:22,160
Speaker 2: then you've got more retirement dollars for future you down

786
00:37:22,200 --> 00:37:24,120
Speaker 2: the road, right, Because you are filling more of your

787
00:37:24,160 --> 00:37:27,239
Speaker 2: retirement buckets. But in addition to that, you are going

788
00:37:27,280 --> 00:37:30,759
Speaker 2: to have more options, more flexibility available to you with

789
00:37:30,840 --> 00:37:33,680
Speaker 2: those ROTH IRA contributions as opposed to ROTH four three

790
00:37:33,719 --> 00:37:36,880
Speaker 2: B contributions. And we don't like this is like a

791
00:37:36,880 --> 00:37:38,680
Speaker 2: benefit that we don't like talking about a whole lot,

792
00:37:38,680 --> 00:37:41,880
Speaker 2: because for the most part, we don't want you touching

793
00:37:41,960 --> 00:37:44,960
Speaker 2: your retirement dollars. But if you are ever in a

794
00:37:45,000 --> 00:37:47,000
Speaker 2: situation down the road where you might need to draw

795
00:37:47,040 --> 00:37:50,080
Speaker 2: on those WROTH contributions, it's much easier to get those

796
00:37:50,080 --> 00:37:53,400
Speaker 2: dollars out tax and penalty free as opposed to the

797
00:37:54,840 --> 00:37:57,400
Speaker 2: ROTH four three B, which has more pro rat of

798
00:37:57,480 --> 00:38:00,799
Speaker 2: rules stipulations in regards to how it is that you

799
00:38:00,800 --> 00:38:02,040
Speaker 2: can handle those contributions.

800
00:38:02,040 --> 00:38:04,920
Speaker 1: And part you mentioned the choice, like part of the choice.

801
00:38:04,960 --> 00:38:07,840
Speaker 1: The benefit of that choice is you can prioritize a

802
00:38:07,920 --> 00:38:11,560
Speaker 1: ridiculously low cost brokerage. Depending on what yeah plan your

803
00:38:11,640 --> 00:38:13,960
Speaker 1: workplace offers. You might find that your four or three

804
00:38:14,040 --> 00:38:17,399
Speaker 1: B has fees that are higher than you'd see maybe

805
00:38:17,400 --> 00:38:19,400
Speaker 1: your four to three b's through fidelity, and that's awesome,

806
00:38:19,880 --> 00:38:22,240
Speaker 1: and you have access to the same low cost funds

807
00:38:22,520 --> 00:38:26,600
Speaker 1: that you would going through Fidelity directly for a roth ira,

808
00:38:26,760 --> 00:38:28,560
Speaker 1: but if not, you might find that you have better

809
00:38:28,640 --> 00:38:30,719
Speaker 1: choices and lower costs by opening up.

810
00:38:30,600 --> 00:38:32,839
Speaker 2: That roth iray on your own. I love it, all right, man.

811
00:38:32,880 --> 00:38:36,000
Speaker 1: We got more questions to get to, including with all

812
00:38:36,000 --> 00:38:38,880
Speaker 1: the news about Greenland, should that impact how you invest?

813
00:38:38,920 --> 00:38:40,799
Speaker 1: We'll talk about that and more right after this.

814
00:38:48,880 --> 00:38:51,080
Speaker 2: All right, we are back from the break and it

815
00:38:51,160 --> 00:38:53,240
Speaker 2: is now signed from the Facebook question of the Week,

816
00:38:53,719 --> 00:38:57,640
Speaker 2: which is from anonymous who wrote, with all the news

817
00:38:57,640 --> 00:39:00,400
Speaker 2: about Greenland, I'm starting to seriously wonder if I should

818
00:39:00,520 --> 00:39:03,240
Speaker 2: pull all my savings from the bank and buy gold.

819
00:39:03,719 --> 00:39:07,279
Speaker 1: Do you have any advice? This is what's happening in Greenland, Matt,

820
00:39:07,280 --> 00:39:08,160
Speaker 1: I hadn't heard of this question?

821
00:39:08,200 --> 00:39:10,399
Speaker 2: Is so fifteen days ago?

822
00:39:12,360 --> 00:39:14,640
Speaker 1: Well, well, yeah, you're right, I mean, in some sense,

823
00:39:14,840 --> 00:39:17,319
Speaker 1: and from the Greenland standpoint, that's last week in the

824
00:39:17,680 --> 00:39:20,560
Speaker 1: Facebook group, So it was probably asked to a point

825
00:39:20,560 --> 00:39:23,600
Speaker 1: of greater tension than currently exists.

826
00:39:23,680 --> 00:39:25,600
Speaker 2: Sure, and well, in addition to the tension, it's also

827
00:39:25,640 --> 00:39:27,560
Speaker 2: because of the fact that we've seen gold. Was it

828
00:39:28,360 --> 00:39:30,799
Speaker 2: last week that it hit? All the time? It hit,

829
00:39:31,120 --> 00:39:33,640
Speaker 2: you know, broke five thousand dollars an ounce for the

830
00:39:33,680 --> 00:39:36,760
Speaker 2: first time ever, so yeah, more, folks, it's not surprising

831
00:39:36,800 --> 00:39:39,320
Speaker 2: that when you see the value of something, the price

832
00:39:39,320 --> 00:39:41,520
Speaker 2: of something shoot up like that, it attracts all the

833
00:39:41,520 --> 00:39:43,799
Speaker 2: eyeballs and you start to wonder, oh, dang it, maybe

834
00:39:43,800 --> 00:39:46,239
Speaker 2: I should have been investing in that. Guess what, Folks

835
00:39:46,239 --> 00:39:49,360
Speaker 2: aren't saying that about bitcoin right now? When the prices

836
00:39:49,360 --> 00:39:51,839
Speaker 2: of bitcoin are low, no one's talking about it. They're

837
00:39:52,000 --> 00:39:54,600
Speaker 2: they're looking elsewhere. But then when it shoots up, everyone's like, oh, man,

838
00:39:54,680 --> 00:39:57,359
Speaker 2: should maybe I gotta get you now? All the time? Yeah, yeah,

839
00:39:57,480 --> 00:39:59,760
Speaker 2: which is, like I mean, quite literally, the exact opposite

840
00:39:59,760 --> 00:40:00,400
Speaker 2: of what you want to do.

841
00:40:00,480 --> 00:40:02,520
Speaker 1: I still, I will say I was. I was encouraged

842
00:40:02,760 --> 00:40:06,640
Speaker 1: by the comments to this question in the Facebook section.

843
00:40:07,000 --> 00:40:10,960
Speaker 1: Some are really funny, but some were essentially speaking to

844
00:40:11,760 --> 00:40:14,960
Speaker 1: the reality that don't let the headlines drive your investing,

845
00:40:15,000 --> 00:40:17,120
Speaker 1: which is something we have said for many, many years

846
00:40:17,120 --> 00:40:20,480
Speaker 1: on the show. Brian's advice was he said, I would

847
00:40:20,520 --> 00:40:23,120
Speaker 1: do what your parents did during y two k nothing

848
00:40:23,440 --> 00:40:26,319
Speaker 1: And if you remember, remember why two k oh your

849
00:40:26,360 --> 00:40:28,680
Speaker 1: parents did something they want to again didn't work out

850
00:40:28,719 --> 00:40:29,480
Speaker 1: to the benefits.

851
00:40:29,800 --> 00:40:31,880
Speaker 2: Was it? Earlier? In this episode, we're talking about paranoia

852
00:40:33,440 --> 00:40:37,439
Speaker 2: driving your decisions. Yeah, yeah, tell us more no, no, no, no,

853
00:40:38,120 --> 00:40:40,000
Speaker 2: say that for some other episodes. Okay, okay, say that

854
00:40:40,040 --> 00:40:44,160
Speaker 2: for a how to prep on the cheap deep.

855
00:40:44,719 --> 00:40:46,600
Speaker 1: I have some preppers in my family, so I can

856
00:40:46,680 --> 00:40:49,640
Speaker 1: I can understand well. And and then Greg's advice was

857
00:40:49,680 --> 00:40:53,120
Speaker 1: to turn off the news. Both of those are great suggestions.

858
00:40:52,840 --> 00:40:56,399
Speaker 1: And I think it's just understandable that all the talk

859
00:40:56,640 --> 00:41:00,480
Speaker 1: the geopolitical tensions disconcerting and and you knowing all your

860
00:41:00,520 --> 00:41:02,920
Speaker 1: savings dollars into gold though because of it, it's just

861
00:41:02,920 --> 00:41:07,240
Speaker 1: a very very radical choice to make. But like, even

862
00:41:07,280 --> 00:41:10,640
Speaker 1: though there are real things at stake here, like we

863
00:41:10,719 --> 00:41:14,239
Speaker 1: talked about that could have a long lasting impact for investors,

864
00:41:14,400 --> 00:41:18,040
Speaker 1: making knee jerk decisions based on headlines is almost always

865
00:41:18,440 --> 00:41:21,960
Speaker 1: in your own worst interest. And as long term investors, Matt,

866
00:41:21,960 --> 00:41:23,359
Speaker 1: we're kind of stay the course kind of people are

867
00:41:23,400 --> 00:41:27,040
Speaker 1: reticent to tell people to make quick moves usually even

868
00:41:27,080 --> 00:41:28,600
Speaker 1: if you want to make moves and if you feel

869
00:41:28,640 --> 00:41:32,120
Speaker 1: like things have changed. We're talking about short strides over

870
00:41:32,160 --> 00:41:34,000
Speaker 1: a long period of time in a different direction, not

871
00:41:34,200 --> 00:41:35,839
Speaker 1: some sort of big knee jerk move.

872
00:41:36,239 --> 00:41:38,360
Speaker 2: Yeah yeah, I mean I don't, I mean, my opinion

873
00:41:38,400 --> 00:41:41,080
Speaker 2: hasn't changed when we talked. We talked about this basically

874
00:41:41,160 --> 00:41:42,480
Speaker 2: like a couple of weeks ago, I guess on a

875
00:41:42,480 --> 00:41:47,080
Speaker 2: Friday flight. But the like the headline news cycle coming

876
00:41:47,120 --> 00:41:51,040
Speaker 2: out of the current administration is not looking at decades

877
00:41:51,360 --> 00:41:53,279
Speaker 2: at a time, or even years at a time, or

878
00:41:53,360 --> 00:41:56,120
Speaker 2: months or even weeks. It's like on a daily, hourly

879
00:41:56,239 --> 00:41:58,200
Speaker 2: sort of basis. And guess how I don't want to

880
00:41:58,280 --> 00:42:01,680
Speaker 2: invest on a daily or hourly basis, And so there

881
00:42:01,680 --> 00:42:04,279
Speaker 2: would need to be changes that take place over the

882
00:42:04,280 --> 00:42:06,839
Speaker 2: course of years, Like I'm talking about a multi year

883
00:42:07,000 --> 00:42:10,560
Speaker 2: timeline that would be significant enough for me to change

884
00:42:10,600 --> 00:42:13,279
Speaker 2: the way that I'm investing, which is currently one percent

885
00:42:13,400 --> 00:42:17,040
Speaker 2: in US equities. So we start to see changes two

886
00:42:17,080 --> 00:42:20,600
Speaker 2: years from now that indicate the US is no longer

887
00:42:21,080 --> 00:42:23,759
Speaker 2: where there is going to be growth and innovation and

888
00:42:23,920 --> 00:42:27,960
Speaker 2: businesses that are able to operate in a way that

889
00:42:28,040 --> 00:42:30,120
Speaker 2: leads to not only the success of those companies but

890
00:42:30,320 --> 00:42:35,200
Speaker 2: just the general betterments of individuals. Okay, that's something we'll

891
00:42:35,200 --> 00:42:37,759
Speaker 2: have a discussion. Like eighteen months from now is when

892
00:42:37,760 --> 00:42:39,640
Speaker 2: we'll start being like, all right, what do you think now?

893
00:42:40,000 --> 00:42:42,719
Speaker 2: And maybe at that point I'll say, yeah, okay, it's

894
00:42:42,760 --> 00:42:45,719
Speaker 2: time to go full international, but we are nowhere near that.

895
00:42:45,760 --> 00:42:48,400
Speaker 2: This is literally a two week cycle that we're currently on.

896
00:42:48,480 --> 00:42:51,879
Speaker 2: It wouldn't be. It wouldn't be a pivot that strong either, right,

897
00:42:51,960 --> 00:42:55,080
Speaker 2: it would be, It could be, but it would all

898
00:42:55,120 --> 00:42:57,359
Speaker 2: that would also likely mean that, like, hey, okay, let's

899
00:42:57,360 --> 00:43:02,120
Speaker 2: start talking about possibly offshoring mind physical body as well,

900
00:43:02,680 --> 00:43:05,520
Speaker 2: because it might mean that things have seriously taken a

901
00:43:05,560 --> 00:43:08,080
Speaker 2: turn for the worse here in the States. So yeah,

902
00:43:08,120 --> 00:43:10,440
Speaker 2: I'm not ruling out the possibility as something like that happened.

903
00:43:10,480 --> 00:43:13,239
Speaker 2: Do I actually think that's gonna happen. Absolutely not. I

904
00:43:13,239 --> 00:43:15,520
Speaker 2: think our constitution, I think our form of government. I

905
00:43:15,520 --> 00:43:18,560
Speaker 2: think the way that we govern here in the US

906
00:43:19,000 --> 00:43:22,080
Speaker 2: is bigger and more durable than what it is that

907
00:43:22,200 --> 00:43:26,400
Speaker 2: a single individual can tweet or truth out and completely

908
00:43:26,520 --> 00:43:28,400
Speaker 2: change the course of the global economy.

909
00:43:28,440 --> 00:43:31,160
Speaker 1: I think part of this question, too, gets down to

910
00:43:31,200 --> 00:43:33,400
Speaker 1: the fact not just that gold is seen as a

911
00:43:33,440 --> 00:43:37,279
Speaker 1: safe haven asset, but also gold of price has gone up, right,

912
00:43:37,320 --> 00:43:39,960
Speaker 1: and there is that fundamental reality that people are like,

913
00:43:40,200 --> 00:43:44,279
Speaker 1: everybody's going to gold. The price is skyrocketing, similar to

914
00:43:44,320 --> 00:43:47,120
Speaker 1: the way people view bitcoin, as you mentioned, and it's like,

915
00:43:47,600 --> 00:43:50,600
Speaker 1: maybe that's where my money should be and if you

916
00:43:50,719 --> 00:43:54,840
Speaker 1: have money in cash in the bank, in savings and

917
00:43:54,880 --> 00:43:57,680
Speaker 1: putting it in gold, those are two very different things.

918
00:43:57,760 --> 00:43:57,920
Speaker 5: Right.

919
00:43:57,920 --> 00:44:01,680
Speaker 1: If gold stagnates a drops in value, your saving suffer.

920
00:44:01,840 --> 00:44:04,440
Speaker 1: So if this is money you need liquid, putting it

921
00:44:04,440 --> 00:44:06,719
Speaker 1: in gold doesn't really make much sense, especially if you're

922
00:44:06,719 --> 00:44:10,719
Speaker 1: buying physical gold and you're talking about the reality that

923
00:44:10,760 --> 00:44:14,120
Speaker 1: it's expensive to buy, expensive to sell, not easy to

924
00:44:14,120 --> 00:44:17,000
Speaker 1: transact with. Gold is just not liquid in the way

925
00:44:17,040 --> 00:44:20,520
Speaker 1: cash is. So it's just hard to use a gold

926
00:44:20,520 --> 00:44:22,879
Speaker 1: bar in case of emergency. Not that gold can't make

927
00:44:22,920 --> 00:44:25,799
Speaker 1: a good investment with a small percentage of your portfolio,

928
00:44:26,040 --> 00:44:28,960
Speaker 1: but be very careful when you're talking about taking savings

929
00:44:29,000 --> 00:44:33,560
Speaker 1: and turning it into gold because of political events happening,

930
00:44:35,520 --> 00:44:37,640
Speaker 1: you have to take in a lot more calculation than

931
00:44:37,719 --> 00:44:41,399
Speaker 1: just the fact that gold is outperforming your cash and

932
00:44:41,520 --> 00:44:42,520
Speaker 1: your nervous.

933
00:44:42,880 --> 00:44:45,480
Speaker 2: Yeah, you could take a portion of your portfolio if

934
00:44:45,520 --> 00:44:49,080
Speaker 2: you really wanted to buy a gold etf instead, which

935
00:44:49,120 --> 00:44:52,160
Speaker 2: would be a better way of approaching it. The fees

936
00:44:52,280 --> 00:44:54,239
Speaker 2: are going to be less egregious. It's going to be

937
00:44:54,400 --> 00:44:59,040
Speaker 2: much easier to buy and sell than selling nuggets of

938
00:44:59,239 --> 00:45:01,960
Speaker 2: gold or bars.

939
00:45:01,200 --> 00:45:03,919
Speaker 1: Or in Facebook marketplace. I mean, come on, that's got

940
00:45:03,920 --> 00:45:05,520
Speaker 1: to be another way to do this.

941
00:45:05,560 --> 00:45:07,280
Speaker 2: But if you can buy bars of gold at costco,

942
00:45:07,440 --> 00:45:09,520
Speaker 2: then you should be able to sell a bar of

943
00:45:09,560 --> 00:45:12,080
Speaker 2: gold on Facebook market. Yeah, one of the same but

944
00:45:12,120 --> 00:45:14,120
Speaker 2: really in same customers, same client right.

945
00:45:14,160 --> 00:45:16,480
Speaker 1: Gold has that same friction problem that real estate has, right,

946
00:45:16,480 --> 00:45:18,440
Speaker 1: where the buyer and seller have to match up, and

947
00:45:18,760 --> 00:45:20,880
Speaker 1: it's just it takes a little bit of effort and

948
00:45:20,920 --> 00:45:21,600
Speaker 1: it costs money.

949
00:45:21,760 --> 00:45:23,480
Speaker 2: Yeah, what I'm getting at though, if you want a

950
00:45:23,480 --> 00:45:26,040
Speaker 2: little bit of gold exposure, I think that's fine. If

951
00:45:26,040 --> 00:45:28,840
Speaker 2: you want to do that, so be it. I'm not

952
00:45:28,920 --> 00:45:31,239
Speaker 2: personally doing that. Just keep it to five percent or

953
00:45:31,320 --> 00:45:36,000
Speaker 2: less of your overall portfolio. And ultimately, to the sort

954
00:45:36,000 --> 00:45:39,080
Speaker 2: of core of this listener's question, it looks like we

955
00:45:39,120 --> 00:45:42,799
Speaker 2: saw another Trump sort of taco moment on Greenland, right,

956
00:45:42,920 --> 00:45:46,759
Speaker 2: which actually bodes well for not making any hard knee

957
00:45:46,840 --> 00:45:49,960
Speaker 2: jerk pivots based on whatever it is that seems to be,

958
00:45:50,040 --> 00:45:52,560
Speaker 2: whatever deal making that might be happening out in public,

959
00:45:52,600 --> 00:45:54,120
Speaker 2: and taco is what people are for. Two.

960
00:45:54,160 --> 00:45:57,480
Speaker 1: I'm sure most people realize that, but Trump always chickens out,

961
00:45:57,680 --> 00:46:00,719
Speaker 1: and so there are these threats that are made, those

962
00:46:00,760 --> 00:46:03,000
Speaker 1: threats get rolled back. He's hoping to get a little

963
00:46:03,040 --> 00:46:06,520
Speaker 1: bit of a deal. But all of the talk, the

964
00:46:06,520 --> 00:46:09,680
Speaker 1: bluster is never followed through on, and so the worries

965
00:46:09,719 --> 00:46:11,800
Speaker 1: that people have similar like Liberation Day and tariffs and

966
00:46:11,800 --> 00:46:15,000
Speaker 1: stuff like that, everything gets rolled back, at least.

967
00:46:14,680 --> 00:46:15,399
Speaker 2: In large part.

968
00:46:15,520 --> 00:46:18,719
Speaker 1: And because of that, investors who were nervous that all

969
00:46:18,719 --> 00:46:21,600
Speaker 1: the threats were going to play out as said, well,

970
00:46:21,600 --> 00:46:23,080
Speaker 1: it doesn't even come close to that in the end.

971
00:46:23,360 --> 00:46:27,120
Speaker 1: So I think, yeah, we should also realize that is

972
00:46:27,160 --> 00:46:30,000
Speaker 1: a part of the current moment, and so maybe don't

973
00:46:30,000 --> 00:46:31,920
Speaker 1: believe everything you hear. All right, Matt, let's get to

974
00:46:31,920 --> 00:46:35,680
Speaker 1: another listener email. This one came from Bill. He says,

975
00:46:35,719 --> 00:46:38,080
Speaker 1: what does it take for someone to get a credit report?

976
00:46:38,320 --> 00:46:40,600
Speaker 1: The law says it has to be free. I don't

977
00:46:40,600 --> 00:46:42,839
Speaker 1: think the law is clear about how easy it is

978
00:46:43,239 --> 00:46:45,719
Speaker 1: for a person to get their own report. I'd love

979
00:46:45,840 --> 00:46:48,319
Speaker 1: to hear you guys talk about the details of how

980
00:46:48,360 --> 00:46:49,600
Speaker 1: to get your credit report.

981
00:46:49,480 --> 00:46:53,200
Speaker 2: Happy to the credit bureaus. Bill are legally required to

982
00:46:53,200 --> 00:46:56,080
Speaker 2: give you access to your credit report once a year.

983
00:46:56,719 --> 00:46:59,160
Speaker 2: Even still they have been for and this is something

984
00:46:59,160 --> 00:47:01,719
Speaker 2: that they've been doing forever now, been attempting to sell

985
00:47:01,760 --> 00:47:04,480
Speaker 2: you access to your credit information via their own sites

986
00:47:04,520 --> 00:47:07,760
Speaker 2: and via their own products. But the federally mandated place

987
00:47:07,800 --> 00:47:10,800
Speaker 2: to turn for your free credit report is annual credit

988
00:47:10,800 --> 00:47:16,480
Speaker 2: report dot com. It's a very ugly, not very boring,

989
00:47:16,960 --> 00:47:18,360
Speaker 2: government looking kind of website.

990
00:47:18,400 --> 00:47:21,120
Speaker 1: I was just going to say that that it's amazing

991
00:47:21,160 --> 00:47:23,160
Speaker 1: how when they had a profit motive behind it, the

992
00:47:23,160 --> 00:47:28,080
Speaker 1: websites were slick. The jingles were incredibly enticing, and people, this.

993
00:47:28,000 --> 00:47:30,880
Speaker 2: Thing's free, Yes, why fancy it up? Why there's no

994
00:47:31,120 --> 00:47:34,000
Speaker 2: there's no incentive, no good marketing around it. Yeah, and

995
00:47:34,040 --> 00:47:37,319
Speaker 2: it looks like you know from MS DOS nineteen ninety two,

996
00:47:37,480 --> 00:47:40,240
Speaker 2: or like I wonder honestly it's a pathetic question. That's

997
00:47:40,360 --> 00:47:42,880
Speaker 2: a part of the reason why it looks the way

998
00:47:42,880 --> 00:47:45,279
Speaker 2: it does, cause like I'm I'm sure they want people

999
00:47:45,320 --> 00:47:46,919
Speaker 2: to go there and be like, oh, there's no way

1000
00:47:46,920 --> 00:47:48,799
Speaker 2: this is legit, right. It's like it's like you look

1001
00:47:48,880 --> 00:47:50,680
Speaker 2: up a restaurant while you're on vacation or something and

1002
00:47:50,680 --> 00:47:52,399
Speaker 2: you're like, oh, this can't be the right place. Yes,

1003
00:47:52,760 --> 00:47:53,399
Speaker 2: it's got like the.

1004
00:47:53,320 --> 00:47:56,080
Speaker 1: Clip art imagery on there, and then you turn away

1005
00:47:56,080 --> 00:47:57,880
Speaker 1: and you like go to some other place that is

1006
00:47:57,920 --> 00:48:00,440
Speaker 1: a tourist trap. But like that's actually the place that's

1007
00:48:00,480 --> 00:48:03,960
Speaker 1: going to overcharge you, underserve you. But in reality, you

1008
00:48:03,960 --> 00:48:06,439
Speaker 1: want to go to the terrible hole in the wall

1009
00:48:06,480 --> 00:48:09,239
Speaker 1: place that the local told you about. That's actually the

1010
00:48:09,320 --> 00:48:09,960
Speaker 1: legit place.

1011
00:48:10,000 --> 00:48:12,200
Speaker 2: That's the equivalent of this annual credit report dot com.

1012
00:48:12,239 --> 00:48:15,480
Speaker 1: The credit bureaus could literally pay one individual on fiber

1013
00:48:15,880 --> 00:48:18,560
Speaker 1: one thousand bucks and have a much better website like

1014
00:48:18,680 --> 00:48:21,800
Speaker 1: next week then they're currently giving out. But of course

1015
00:48:22,040 --> 00:48:24,759
Speaker 1: the goal is to comply with federal law, not to

1016
00:48:24,880 --> 00:48:28,719
Speaker 1: then to steer all everybody to the actual slick, nice

1017
00:48:28,760 --> 00:48:31,200
Speaker 1: licking products that they are. So that's their website, right, No, no, no,

1018
00:48:31,360 --> 00:48:33,840
Speaker 1: you want the credit lock guys, that's what you want. No,

1019
00:48:34,040 --> 00:48:36,040
Speaker 1: you don't want the credit luck. Despite what the credit

1020
00:48:36,040 --> 00:48:39,520
Speaker 1: buro say, and I will say to the credit bureaus

1021
00:48:39,680 --> 00:48:42,480
Speaker 1: credit Matt, maybe we should, maybe we should say a

1022
00:48:42,520 --> 00:48:47,080
Speaker 1: little something nice about them. Since COVID the Tosma bone, Yeah,

1023
00:48:47,120 --> 00:48:49,880
Speaker 1: the reports have actually become free on a weekly basis.

1024
00:48:49,880 --> 00:48:52,880
Speaker 1: The federal requirement is to have your credit reports available

1025
00:48:52,880 --> 00:48:56,400
Speaker 1: to you for free once a year, and for the

1026
00:48:56,400 --> 00:48:57,879
Speaker 1: time being, at least you get it fifty two.

1027
00:48:57,800 --> 00:48:59,439
Speaker 2: Times a year. Well, how long is that going to last?

1028
00:48:59,840 --> 00:49:02,680
Speaker 1: I have no idea. I'm actually surprised it's lasted this long,

1029
00:49:03,120 --> 00:49:06,399
Speaker 1: and for most people there's no need to look that often. Really,

1030
00:49:06,440 --> 00:49:09,759
Speaker 1: once maybe twice a year is a good kind of

1031
00:49:09,840 --> 00:49:12,719
Speaker 1: rhythm to get into for checking your credit report, just

1032
00:49:12,800 --> 00:49:15,160
Speaker 1: to make sure sure everything's accurate, because I think when

1033
00:49:15,160 --> 00:49:16,879
Speaker 1: you look at the number, something between twenty and twenty

1034
00:49:16,920 --> 00:49:19,839
Speaker 1: five percent of credit reports have some sort of inaccuracy

1035
00:49:19,880 --> 00:49:22,080
Speaker 1: on them. But if you find that that's the case

1036
00:49:22,120 --> 00:49:24,520
Speaker 1: for yours, you can dispute anything you find on your

1037
00:49:24,560 --> 00:49:29,000
Speaker 1: credit report that isn't correct directly with the credit bureaus themselves.

1038
00:49:29,000 --> 00:49:32,279
Speaker 1: So Bill, hope that helps. It's actually fairly easy to

1039
00:49:32,320 --> 00:49:35,880
Speaker 1: get your own credit report and to monitor kind of

1040
00:49:35,920 --> 00:49:40,680
Speaker 1: the changes that happen there, despite the shadiness the crumminess

1041
00:49:40,680 --> 00:49:41,320
Speaker 1: of that website.

1042
00:49:41,520 --> 00:49:43,640
Speaker 2: That's right. But let's get back to the beer that

1043
00:49:43,640 --> 00:49:46,880
Speaker 2: you and I enjoyed during this episode, which was a

1044
00:49:47,120 --> 00:49:51,440
Speaker 2: wee Heavy by Incendiary Brewing Company, and specifically, like you mentioned,

1045
00:49:51,480 --> 00:49:55,560
Speaker 2: it is a coconut maple macaroon barrel aged Scotch style

1046
00:49:55,640 --> 00:50:00,560
Speaker 2: ale that was aged in Blatant's bourbon barrels. That's a mouthful.

1047
00:50:00,760 --> 00:50:01,879
Speaker 2: What did you think about this? Beer.

1048
00:50:01,920 --> 00:50:04,960
Speaker 1: All Right, I'm gonna say I love scott Jales and

1049
00:50:05,320 --> 00:50:08,799
Speaker 1: barely a Scotch Shales normally right at my alley, and

1050
00:50:08,840 --> 00:50:10,959
Speaker 1: I really like this beer. But I will also say

1051
00:50:11,960 --> 00:50:15,960
Speaker 1: sweet to the max. It was very sweet, yeah, and

1052
00:50:16,000 --> 00:50:19,080
Speaker 1: macaroon in the same Yeah, like that's a lot going

1053
00:50:19,080 --> 00:50:19,400
Speaker 1: on it.

1054
00:50:19,560 --> 00:50:22,480
Speaker 2: Yeah, whole whole lot of flavor, like right right, like

1055
00:50:22,480 --> 00:50:24,040
Speaker 2: that's the first thing I've done to It was sweet,

1056
00:50:24,320 --> 00:50:27,279
Speaker 2: but like that maple aroma, I was just like, oh,

1057
00:50:27,360 --> 00:50:30,640
Speaker 2: this is it immediately translated into that maple flavor. It's

1058
00:50:30,680 --> 00:50:33,320
Speaker 2: almost maybe it translated more directly into like maple syrup

1059
00:50:33,440 --> 00:50:37,960
Speaker 2: sort of flavor, but like the coconut macaroon, like it

1060
00:50:38,000 --> 00:50:40,000
Speaker 2: reminded me of girl Scout. What's the girl Scout cookie

1061
00:50:40,080 --> 00:50:43,000
Speaker 2: that's got the coconut fla is that it don't? I don't,

1062
00:50:43,040 --> 00:50:45,040
Speaker 2: I don't know. It reminded me of that, but it's

1063
00:50:45,040 --> 00:50:47,160
Speaker 2: also just really it was a really big beer. I

1064
00:50:47,360 --> 00:50:49,000
Speaker 2: think I felt like I was drinking more bourbon than

1065
00:50:49,040 --> 00:50:52,359
Speaker 2: actual Scotch Shaw, which I'm find with Blaine's is a

1066
00:50:52,360 --> 00:50:55,560
Speaker 2: fantastic bourbon. But uh yeah, this was actually a perfect

1067
00:50:55,560 --> 00:50:57,719
Speaker 2: beer for United Split. This was a sixty notes can

1068
00:50:57,920 --> 00:51:00,759
Speaker 2: we each only had eight ounces of that, which was

1069
00:51:00,760 --> 00:51:03,560
Speaker 2: honestly the perfect quantity. Like, any more than that, I

1070
00:51:03,600 --> 00:51:05,759
Speaker 2: don't think I would have been able to finish both. No,

1071
00:51:05,840 --> 00:51:07,520
Speaker 2: I agree, this is perfect. Yeah, I agree. It was

1072
00:51:07,880 --> 00:51:10,360
Speaker 2: us nice, like one of those winter warmer kind of

1073
00:51:10,360 --> 00:51:13,000
Speaker 2: style of beers. It's a January beer, January February beer. Yeah,

1074
00:51:13,440 --> 00:51:17,799
Speaker 2: so perfect timing as well. Even though it was incredibly sweet,

1075
00:51:17,560 --> 00:51:21,080
Speaker 2: I still dug it. I could have used maybe some

1076
00:51:21,320 --> 00:51:23,440
Speaker 2: roastier tones to balance it out, but still, yeah, I

1077
00:51:23,480 --> 00:51:25,920
Speaker 2: still enjoyed it a lot, that's right. Yeah, and thanks

1078
00:51:25,960 --> 00:51:28,760
Speaker 2: again to Brandon for donating this one to the show.

1079
00:51:28,960 --> 00:51:30,680
Speaker 2: But buddy, that's going to be it for this episode.

1080
00:51:30,680 --> 00:51:33,880
Speaker 2: We'll link to any resources we may have mentioned during

1081
00:51:34,200 --> 00:51:37,280
Speaker 2: this recording up on the website, including the real site

1082
00:51:37,320 --> 00:51:39,160
Speaker 2: where you can get your credit report. Oh yeah, we'll

1083
00:51:39,160 --> 00:51:41,319
Speaker 2: link to that annual credit report dot com. But yeah,

1084
00:51:41,320 --> 00:51:42,920
Speaker 2: head over to our show notes and there'll be other

1085
00:51:43,000 --> 00:51:46,839
Speaker 2: resources there for you as well. But buddy, that's going

1086
00:51:46,920 --> 00:51:48,399
Speaker 2: to be it for this one. So until next time,

1087
00:51:48,560 --> 00:52:01,799
Speaker 2: Best Friends Altum, best Friends, out the boo