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

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

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Speaker 2: You know what, buddy, this is an ask How to

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Speaker 2: Money Monday episode where we're going to get to five

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Speaker 2: different listener questions, including a question from a listener who

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Speaker 2: is wondering if he should handle his personal finances like

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Speaker 2: businesses handle their finances. Another listener is wondering if his

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Speaker 2: investment dollars whether or not they are safe, and yet

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Speaker 2: another is wondering how he can help out his parents,

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Speaker 2: in particular when the financial roles begin to reverse, when

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Speaker 2: they begin.

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Speaker 3: To shift a little bit.

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Speaker 2: We've got those three questions, plus a few a couple

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Speaker 2: others two more during today's episode.

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Speaker 1: Yeah, all right, Before we get to these questions, man,

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Speaker 1: got some good ones. I wanted to mention my neighbor.

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Speaker 1: I don't have ever mentioned that she is ninety six

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Speaker 1: years old and she is still incredibly spry, which is

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Speaker 1: just gives me hope for the future that I too,

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Speaker 1: if I live a clean and healthy life, maybe I'll

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Speaker 1: maybe hit that same point at some point in the future.

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Speaker 2: Have you talked about her longevity with her, No, that's

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Speaker 2: her secret is it like one Recee's peanut butter cup

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Speaker 2: every single day. I feel like there's different stories about

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Speaker 2: this French lady eats three bag ads. It was like

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Speaker 2: all sorts of weird dietary practices of the long living.

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Speaker 1: Yeah, well, okay, I'll report back when I find that out.

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Speaker 1: But that's not what I want to talk about necessarily.

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Speaker 1: That's that she's like, la, let me what's your diet like?

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Speaker 1: But she's like the sweetest And I went over there

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Speaker 1: the other day to help her. She'd bought something and

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Speaker 1: she needed help getting out of the car setting it up,

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Speaker 1: So I went over there and did that for her.

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Speaker 1: But she we were talking about how basically she went

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Speaker 1: into the store to buy the item because she said,

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Speaker 1: when I looked it up online, I realized it was

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Speaker 1: more expensive than it was in the store. She's ninety six, man,

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Speaker 1: and she could have had a drop off at her

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Speaker 1: door stuff and done the easy thing. She still went

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Speaker 1: the sweat equity route and opted to go in the

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Speaker 1: store to purchase the product to save those extra dollars.

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Speaker 1: That that is awesome, I could tell just talking to her,

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Speaker 1: like she knows the value of a dollar. She was

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Speaker 1: even talking about you know, we got new trash cans

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Speaker 1: from the city, and I know you're not happy about

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Speaker 1: it because you spent money on these trash cans, like

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Speaker 1: on your own tracks.

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Speaker 2: Well, I wish they would have implemented this like a

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Speaker 2: couple of years ago before we dropped a couple of bucks.

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Speaker 2: Well you want to all right, hold on, let me

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Speaker 2: let me go. Can you finish your story and then out,

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Speaker 2: I've got a little.

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Speaker 1: So so she basically said, hey, they proactively dropped off

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Speaker 1: the trash cans. And she's like, I call the city.

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Speaker 1: I'm going for the smaller size because they're charging every

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Speaker 1: single month based on the size of trash can you have.

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Speaker 1: And so she she cares that much about three dollars

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Speaker 1: a month, which I think is awesome. Like she understands

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Speaker 1: the value of a dollar, and I think a lot

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Speaker 1: of us in our society, like we should be a

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Speaker 1: little more like miss Betty. We should understand the value

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Speaker 1: of a dollar when it comes to buying stuff in store.

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Speaker 1: If you're gonna save money when it comes to those

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Speaker 1: monthly recurring expensers, three, there is nothing to sneeze at.

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Speaker 1: She knows that, and we should all kind of join

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Speaker 1: join forces with her in that realization.

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Speaker 2: We got to take some tips from the silent generation. Yeah,

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Speaker 2: that's that depression era of frugality kicking in for sure.

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Speaker 2: But on that note, so it turns out that I

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Speaker 2: can still use our bigger trash cans.

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Speaker 3: Oh really?

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Speaker 2: Yeah, so our neighbor actually called up and as long

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Speaker 2: as it has the bar on the trash can, so

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Speaker 2: functionally they're exactly the same because they're trying to standardize

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Speaker 2: the trash can so that they're the guys, the folks

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Speaker 2: who are emptying the trash into the truck that they

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Speaker 2: can just swing it over. So I get that again,

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Speaker 2: I just wish that it was something that they would

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Speaker 2: have implemented years ago.

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Speaker 3: Supposed to the fact you get to keep them helpful.

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Speaker 2: Yeah, well, I mean it sucks, honestly, it's it's I

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Speaker 2: feel bad about the amount of trash that we produce.

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Speaker 2: But there's a big difference between a single ninety six.

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Speaker 1: Year old that's true living virus. We literally talked about that.

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Speaker 1: She was as opposed to I still have kids at home,

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Speaker 1: I'd be sticking with this trash can exactly. Yeah, as

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Speaker 1: opposed to a family of six under a single roof

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Speaker 1: but always nice to hang out with my ninety six

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Speaker 1: year old neighbor and just see like how her frugality,

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Speaker 1: her intentionality with money, like it just it helps steal

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Speaker 1: my resolve right to do the same and to not

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Speaker 1: be so flippant even when it comes to three dollars

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Speaker 1: things or taking the easy route. And granted, like it's

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Speaker 1: not that paying for convenience never makes sense, but I

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Speaker 1: love kind of her philosophy and the fact that she's

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Speaker 1: like willing to.

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Speaker 2: Like walk the talk totally.

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Speaker 3: Yeah. Well, the fact is I bet that.

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Speaker 2: She doesn't have many side hustles going on, right, so

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Speaker 2: for her her time it kind of does equal money.

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Speaker 2: And so if she can expend use utilize some of

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Speaker 2: that time in order to save a dollar here or there,

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Speaker 2: I think that's awesome. Yeah, but uh, let's quickly introduce

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Speaker 2: the beer you and I are enjoying during this episode.

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Speaker 2: This is one that you pulled from your personal stash,

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Speaker 2: So thank you for that man for us to enjoy

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Speaker 2: here on the show. But this is a supplication by

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Speaker 2: Russian River. Really looking forward to enjoying this one, and

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Speaker 2: we will share our thoughts at the end of the.

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Speaker 1: Episode for sure, all Right, But for now, let's move

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Speaker 1: on to listener questions, and if you have a question

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Speaker 1: for the show, we'd love to taking it on an

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Speaker 1: upcoming episode. She's got a how to money dot com

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Speaker 1: slash ask for the simple instructions for how to record

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Speaker 1: of voice memo on your phone and send it our way.

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Speaker 1: It's pretty easy, but you could probably figure it out

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Speaker 1: without looking at the instructions, and you can send it

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Speaker 1: over to us at howdomoneypot at gmail dot com. But Matt,

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Speaker 1: let's get to our first question of this episode. This

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Speaker 1: one is about how to help your folks out financially

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Speaker 1: as they're aging.

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Speaker 4: Hello, man, Joel, this is Ryan from Detroit, Michigan, and

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Speaker 4: I have a question that I think you might be

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Speaker 4: able to help me with. So my dad is looking

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Speaker 4: to retire. He's self employed and so does not have

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Speaker 4: any formal retirement and my mom is in pretty poor health.

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Speaker 4: So they do have a rental property that they use

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Speaker 4: for monthly income. It's a relatively small amount, but I

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Speaker 4: was thinking it would be a better idea if they

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Speaker 4: sold the house to me instead of gifting it to

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Speaker 4: me when they pass away. That way, they could have

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Speaker 4: a pile of cash to use and invest for my

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Speaker 4: dad's retirement or use it to pay off their own

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Speaker 4: mortgage or whatever debts they may have. So let me

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Speaker 4: know what you guys think of this, And next time

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Speaker 4: you're in Detroit, the beers are on me.

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Speaker 2: Ooh, Ryan, we might actually take you up on that

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Speaker 2: offer these days. But first of all, I love hearing

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Speaker 2: some birds in the background, like chirping in the background there,

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Speaker 2: like I picture him in his front yard. It kind

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Speaker 2: of sounds like he's out there working in the yard

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Speaker 2: kind of thing. But yeah, taking a hike, Yeah, yeah,

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Speaker 2: I just I love the sound of nature. Maybe we

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Speaker 2: should consider recording while we're maybe sitting on top of

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Speaker 2: the mountain or something like that.

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Speaker 3: Oh, I think that's a great idea.

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Speaker 2: And Ryan, you also you mentioned the health of your mom.

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Speaker 2: I'm sorry to hear about that. I think I'm guessing

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Speaker 2: that might have something to do with your dad's desire

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Speaker 2: to retire for y all to kind of spend some

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Speaker 2: more quality time together. But I love hearing that you

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Speaker 2: are thinking proactively about how it is that you can

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Speaker 2: best help your folks, and specifically you're wondering if whether

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Speaker 2: or not you should buy their house, their rental property,

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Speaker 2: their investment property. And that's actually we think that's going

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Speaker 2: to depend on a few different factors that you want

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Speaker 2: to keep in mind.

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Speaker 1: At first I heard this question, and I didn't hear

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Speaker 1: the rental part of the question, and I was thinking,

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Speaker 1: you know what, a reverse mortgage might make the most

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Speaker 1: sense for your folks, but you can't do that on

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Speaker 1: a rental property, So that doesn't even really bear discussion.

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Speaker 1: And I will say really quickly, a lot of the

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Speaker 1: reverse mortgage is not a slam dunk either for lots

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Speaker 1: of folks. But we can talk about that on a

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Speaker 1: future day, but some other time. Yeah, But things that

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Speaker 1: Ryan should consider One can you afford it? And I'm

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Speaker 1: guessing if you're asking the question, you can, right, or

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Speaker 1: you probably wouldn't be like, Hey, should I do this?

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Speaker 1: But I don't have any money? But like, that's that's

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Speaker 1: one question to ask. All you need to ask? Does

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Speaker 1: this make financial sense for you?

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Speaker 2: Yeah?

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Speaker 1: Because even if you can afford to buy this house

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Speaker 1: from them, like, is this a good move for you

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Speaker 1: and for your financial future?

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Speaker 2: Well, I think there can be varying degrees of whether

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Speaker 2: or not he is financially prepared or in a position

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Speaker 2: to afford this house, right, Like, there's a difference between

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Speaker 2: what the bank might say. You know, they punch in

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Speaker 2: the numbers and they're like, oh, it spits out a

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Speaker 2: yes or no answer. Okay, look looks like you qualified,

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Speaker 2: as opposed to Ryan according to his own standards, feeling

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Speaker 2: like he's prepared to where he would have the ability

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Speaker 2: to comfortably afford that house.

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Speaker 1: Yeah, comfortably is an important word in there, because you

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Speaker 1: could maybe afford it but still feel like you're over

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Speaker 1: a barrel financially speaking, and that would not be fun.

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Speaker 1: So are you doing this purely as an active service, Ryan,

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Speaker 1: or like, do you see this home as a helpful

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Speaker 1: part of your financial future? And those are a lot

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Speaker 1: of questions to consider, but they're really really important, and

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Speaker 1: it's more than okay to sacrifice your finances, at least

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Speaker 1: to a certain degree in order to help your parents.

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Speaker 1: Matt and I we would do the same for our parents.

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Speaker 1: We love them, and so there are things that we

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Speaker 1: would do there might not be in our best interest, right,

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Speaker 1: because that's what you do as a family. Families can

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Speaker 1: have more communist tendencies, right, because they can support each

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Speaker 1: other in ways that you you might not do. Just

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Speaker 1: in to a stranger that you meet walking down the street.

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Speaker 5: Yeah.

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Speaker 2: Yeah, on a micro familial level, yes, we're all kind

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Speaker 2: of participating in socialism.

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Speaker 1: Yes exactly, which is totally fine, right.

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Speaker 2: My wife gets all of my money.

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Speaker 3: What's up with that? Well, she is that like so

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Speaker 3: much for you, Matt.

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Speaker 2: Super misogynous for me to for me to but I mean, honest, like,

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Speaker 2: that is how families work. And granted we're talking about

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Speaker 2: extended families here, which my kids don't do anything. They

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Speaker 2: do just so very total freeloaders right now. But that's

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Speaker 2: that's how it works. They don't deserve family, but they'll

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Speaker 2: get but they get it. And but still that doesn't

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Speaker 2: mean that buying their rental is the best option for sure,

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Speaker 2: and so the changes it might be, it might be,

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Speaker 2: but there are just so many factors at play, and

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Speaker 2: if you don't see yourself holding on to the house

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Speaker 2: long term, there's probably not the best idea, even if

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Speaker 2: you're thinking that it'd be the nice thing to do,

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Speaker 2: as like a dutiful sun sure, yeah, yeah, okay, but

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Speaker 2: assuming this does check a lot of boxes for Ryan's

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Speaker 2: personal finances, and this also gets you a nice lump

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Speaker 2: sum in your parents' hands to cover the everyday expenses. Well,

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Speaker 2: you know, this could be a potential win win situation

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Speaker 2: because one of the perks of your parents selling directly

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Speaker 2: to you is that they'll be able to save a solid,

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Speaker 2: healthy six percent since they won't have to pay any

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Speaker 2: realtor fees. I think you'll still likely want to hire

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Speaker 2: a real estate closing attorney to make sure that you

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Speaker 2: are all buttoned up from a legal standpoint. Man, but

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Speaker 2: the ability to sidestep one of the most costly expenses

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Speaker 2: associated with selling a house that's really, really attractive, It

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Speaker 2: would also make me want to consider buying a home

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Speaker 2: of that my parents owned, Ryan. And plus your parents,

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Speaker 2: they might like the fact that their son is taking

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Speaker 2: the reins on that rental. You know, they might like

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Speaker 2: the fact that it's you who is stepping in and

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Speaker 2: is giving them the ability to simplify and then to

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Speaker 2: reduce the responsibilities, like I said, in order to kind

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Speaker 2: of focus on maybe the things that matter a little

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Speaker 2: more in their later years that might be a bit

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Speaker 2: higher in their list of priorities. Sure.

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Speaker 1: Yeah, And to know that you're getting the financial benefit

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Speaker 1: of owning this rental property that is staying in the family,

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Speaker 1: that can provide like some peace of mind that can

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Speaker 1: actually make them feel better about the way this is

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Speaker 1: going down. But one of the downsigns to moving forward

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Speaker 1: with this transaction, though, is the fact that this is

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Speaker 1: a non arms length transaction, which is what occurs when

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Speaker 1: there's a sale between two parties who have a personal

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Speaker 1: or professional relationship. And obviously, with y'all being family, this

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Speaker 1: is most definitely a personal relationship. And this doesn't mean

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Speaker 1: it qualifies. It qualifies. It qualifies right you are related

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Speaker 1: very closely, and this doesn't mean that this sale would

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Speaker 1: be illegal, but it's going to face more scrutiny by

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Speaker 1: the IRS and to make sure that there isn't really

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Speaker 1: any funny business going on, and typically that would look

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Speaker 1: like a below market sale, which would be considered a

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Speaker 1: gift of equity. But it doesn't sound like this is

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Speaker 1: going to be an issue for you guys, since both

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Speaker 1: parties are likely expecting the sale to occur at fair

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Speaker 1: market value. But if you're looking to get a mortgage

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Speaker 1: on this property, there would be likely be additional requirements

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Speaker 1: from your lender because of the fact that it's known

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Speaker 1: as this non arms length transaction, and it just muddies

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Speaker 1: the water a little. It's definitely doable, but it's important

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Speaker 1: to mention that, and it's important to mention that your

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Speaker 1: folks also are going to owe capital gain stack, so

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Speaker 1: they will receive a tax bill from the sale of

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Speaker 1: the rental property as well. Sure, yeah, whether they sell

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Speaker 1: it to you or whether they sell it open market,

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Speaker 1: But if you're planning to pay with cash, Ryan, then

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Speaker 1: those additional lender requirements, those won't be an issue. But Jill,

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Speaker 1: you mentioned fair market value. I think that could actually

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Speaker 1: potentially complicate matters because Ryan, you might think that you

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Speaker 1: are on the same.

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Speaker 2: Page as your folks as to what the house is worth,

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Speaker 2: but man, you know, they might turn around and say that,

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Speaker 2: you know, what they think it's worth is actually a

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Speaker 2: good bit more, especially if they've owned the house for

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Speaker 2: a while, maybe they have like some sort of emotional

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Speaker 2: connection to the property. So if that were to be

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Speaker 2: the case, there could be the potential for some family

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Speaker 2: strife that would arise, which would obviously that would probably

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Speaker 2: be the last thing that you'd want. And plus you

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Speaker 2: never know, like a buyer actually could come in and

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Speaker 2: offer ten fifteen percent more than what they're actually listing for,

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Speaker 2: you know, meaning that they would end up leaving money

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Speaker 2: on the table by selling it directly to you. Anytime,

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Speaker 2: you're removing the open market from the ability to take

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Speaker 2: a look at this property. Like I imagine, like you're talking

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Speaker 2: about your neighbor being ninety six years old, Well, that

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Speaker 2: same neighbor has a son who lives across the street,

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Speaker 2: like basically right across the street from you. Her whole

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Speaker 2: family is on my street, man, And so imagine if

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Speaker 2: somebody there, you know, that on the house that your

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Speaker 2: parents own on that street. Well, let's say that somebody

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Speaker 2: has parents that live over there, and they're thinking, Man,

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Speaker 2: if we could buy that rental property that's kind of

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Speaker 2: sitting there, it's cue that would totally work for us.

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Speaker 2: That would allow us to take care of mom and dad.

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Speaker 2: That's the kind of unique personal situation that could cause

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Speaker 2: someone to pay substantially more than what most folks would

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Speaker 2: consider paying for that house.

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Speaker 1: Sometimes it just depends on market conditions, and people are

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Speaker 1: willing to pay more because there's just so little inventory, right,

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Speaker 1: and sure you might see that there's more people interested

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Speaker 1: than you thought. And so yeah, you agreeing to an

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Speaker 1: off market price with your folks could potentially depending again

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Speaker 1: on specific market conditions could result in them making less

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Speaker 1: money than they otherwise might be able to and considering

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Speaker 1: kind of what's going on with their finances, that's important

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Speaker 1: to think about. And it does make this a trickier

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Speaker 1: situation with both of you guys being on both sides

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Speaker 1: of the transaction. So maybe what would be best is

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Speaker 1: for you to not purchase this property and it might

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Speaker 1: make more sense for you and your parents to be

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Speaker 1: on the same side of the transaction. What I mean

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Speaker 1: by that is that like where you're basically both doing

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Speaker 1: everything you can to maximize how much they can sell

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Speaker 1: that house for yeah, and specifically for you, that can

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Speaker 1: mean heading over there to help out with some repairs,

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Speaker 1: doing some of the updates that need to take place.

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Speaker 1: You don't even have to necessarily doing yourself, but hiring

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Speaker 1: your people to do this stuff. But yeah, putting in

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Speaker 1: some sweat equity to boost the curb appeal so that

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Speaker 1: they're able to get top dollar when they do sell.

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Speaker 1: And I like this approach because there are just fewer

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Speaker 1: conflicts of interest at play. You might not be taking

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Speaker 1: on a house that you're not necessarily keen to own.

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Speaker 1: Maybe you don't want to be a landlord who knows,

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Speaker 1: and then you're working together to achieve the same goal

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Speaker 1: to basically maximize their income from the sale so that

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Speaker 1: they have a bigger lump sum to draw on for

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Speaker 1: these retirement years.

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Speaker 2: Yeah, I really like this as well, because this is

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Speaker 2: a way for Ryan to participate and help his folks

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Speaker 2: out without you know, like washing his hands completely of

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Speaker 2: the situation. But it's just I have a tough time because, yeah,

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Speaker 2: there's a conflict of interest when you want your parents

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Speaker 2: to get the absolute top dollar and anytime you buy

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Speaker 2: a piece of real estate, the deal happens when you

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Speaker 2: make the purchase, and so you are always looking for

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Speaker 2: that deal, and so it's just a it's such a

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Speaker 2: tight rope to walk, and it really does just kind

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Speaker 2: of muddy the water. So I really like the with

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Speaker 2: you both being on the same side, working as a

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Speaker 2: team polling together, as opposed to feeling like they're there's

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Speaker 2: a tension there where you're both pulling on tugging on

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Speaker 2: opposite ends of the roape.

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Speaker 3: Well, and the.

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Speaker 1: Truth is it might not be best for either party,

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Speaker 1: and so tugging in one direction together might be the

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Speaker 1: best for both of you at the same time. So like, Yeah,

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Speaker 1: I think it could make sense from that lack of

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Speaker 1: conflict of interest standpoint, but also just from like the

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Speaker 1: best final result, the best end result for everybody involved.

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Speaker 1: But Matt, we've got more questions to get to, including

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Speaker 1: one from a listener who's worried he's not saving enough

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Speaker 1: for his kids. We're going to get to that and

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Speaker 1: more right after this.

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Speaker 2: All right, Joel, we are back from the break, and

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Speaker 2: let's get to our next question, which is from a

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Speaker 2: listener who not only has the entrepreneurial spirit, but she's

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Speaker 2: also got some money in the bank.

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Speaker 6: Hi, met angel My name is Angeliki and I live

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Speaker 6: just outside of Charlotte, North Carolina. I'm a long time

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Speaker 6: listener of your podcast. Here's my question for you. I

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Speaker 6: have an old employer for a one K that holds

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Speaker 6: both traditional and ROTH dollars. I now own my own

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Speaker 6: business and want to move this old retirement account moving forward.

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Speaker 6: My current retirement accounts include a Vanguard Roth IRA, which

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Speaker 6: I have been contributing to for years in a Vanguard

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Speaker 6: solo four to one K with both traditional and Roth

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Speaker 6: options available. I established this account at the start of

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Speaker 6: owning my own business. I'd love to use Capitalized to

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Speaker 6: roll over my old four oh one K dollars into

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Speaker 6: these new accounts. After starting the process, I realized Capitalize

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Speaker 6: recommended rolling old four to one ks into iras.

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Speaker 7: Only.

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Speaker 6: With that being said, do you recommend moving my old

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Speaker 6: four to one K dollars into iras versus my new

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Speaker 6: solo four one k? And if so, would I need

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Speaker 6: another IRA in addition to my already established roth IRA

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Speaker 6: to house both my pre tax and post tax contributions.

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Speaker 6: Thank you so much for taking my question.

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Speaker 1: Well, Matt, seems like Angelique wants all the retirement accounts

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Speaker 1: like Pokemon go gotta catch them all something like that.

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Speaker 3: That is that what she's going for?

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Speaker 2: He is there a retirement account that she doesn't have?

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Speaker 3: I am curious. I want to know.

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Speaker 2: She didn't mention HSA. So no, maybe all right?

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Speaker 1: So and I'm not sure. Well, that's something we talked

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Speaker 1: about a lot, But I love that she mentioned Capitalized.

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Speaker 1: They can make these rollovers a whole lot easier. But

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Speaker 1: the you know we're going to talk about, maybe it

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Speaker 1: doesn't make the most sense for you to go with

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Speaker 1: Capitalize based on kind of what you're trying to achieve.

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Speaker 1: But for a lot of people going with Capitalized to

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00:17:28,880 --> 00:17:31,840
Speaker 1: do a rollover makes a lot of sense, largely because

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Speaker 1: it's completely free and they do the adult thing for you.

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Speaker 1: And but yeah, this is something that should be really

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Speaker 1: straightforward to do and easy, but the gears can get

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Speaker 1: gummed up, and that's what Capitalize helps with. They helped

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Speaker 1: kind of make the transition. And I wrote the review

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Speaker 1: on the site Matt because for I was able to

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Speaker 1: roll over my wife's Emily, her old four O one

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Speaker 1: K two an Ira with fidelity, and they made it

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Speaker 1: just easier than it otherwise would have been, and they

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Speaker 1: just kind of held my hand through the process, even

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Speaker 1: just at I think one of the best things way

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Speaker 1: they did was they had an online notary, so instead

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Speaker 1: of having to go visit a notary in person.

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Speaker 3: That was the best part of it.

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Speaker 2: I know that.

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Speaker 1: Yeah, I was like, okay, this saved me time, effort,

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Speaker 1: and annoyance. So I appreciated that. But yeah, so for

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Speaker 1: folks who want to do the rollover and they're trying

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Speaker 1: to figure out, okay do I how do I do this?

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Speaker 1: If you want to hit the easy button, Capitalize is the.

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Speaker 2: Way to go. Yeah, which, so you talking about the

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Speaker 2: notary makes me. Think about that's that's totally going to

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Speaker 2: be a ninety six year old Matt side hustle.

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Speaker 3: Is hey online notary?

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Speaker 5: Well?

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Speaker 2: Just is it online or just just hey, you want

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Speaker 2: to come and get my stamp? Show up at this

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Speaker 2: you know this address, this time, and I will look

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Speaker 2: at your ID and watch you sign.

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Speaker 1: But by then GPT twenty eight is going to notarize

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Speaker 1: everything for us.

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Speaker 3: So we'll do it for you.

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Speaker 2: The main question here, Angeligue, is like when it is

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Speaker 2: that you're going to need access to your retirement funds.

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Speaker 2: So specifically we're talking about early retirement here, and if

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Speaker 2: you're planning to retire before age fifty nine and a half, well,

438
00:18:56,920 --> 00:19:00,800
Speaker 2: converting those dollars into a roth ira that might actually

439
00:19:00,840 --> 00:19:03,719
Speaker 2: be the best move. Folks that are pursuing fire they

440
00:19:03,760 --> 00:19:07,000
Speaker 2: set up what's called a wroth conversion ladder, and that

441
00:19:07,119 --> 00:19:10,239
Speaker 2: is where you convert a set amount of funds, an

442
00:19:10,240 --> 00:19:12,080
Speaker 2: amount of funds that you want to be able to

443
00:19:12,080 --> 00:19:14,159
Speaker 2: live off of per year from a four to one

444
00:19:14,280 --> 00:19:17,439
Speaker 2: K to a roth ira each and every year. You

445
00:19:17,480 --> 00:19:21,000
Speaker 2: basically have that mapped out and the IRS the categorizes

446
00:19:21,040 --> 00:19:25,480
Speaker 2: those converted funds as contributions to your roth IRA, and

447
00:19:25,520 --> 00:19:29,240
Speaker 2: as most folks know, contributions to Roth's can be withdrawn

448
00:19:29,480 --> 00:19:30,320
Speaker 2: penalty free.

449
00:19:30,359 --> 00:19:33,840
Speaker 1: So there you go, lots more flexibility to take that route.

450
00:19:33,880 --> 00:19:34,080
Speaker 3: Yeah.

451
00:19:34,080 --> 00:19:35,840
Speaker 2: So the only catch though, is that those funds they

452
00:19:35,840 --> 00:19:38,320
Speaker 2: need a season for five years. But that's one of

453
00:19:38,320 --> 00:19:40,560
Speaker 2: the ways that folks who are in the Fire movement,

454
00:19:40,560 --> 00:19:43,200
Speaker 2: which by the way stands for financial independence, retire early

455
00:19:43,640 --> 00:19:45,879
Speaker 2: the Fire movement. That's how those folks are able to

456
00:19:45,960 --> 00:19:47,359
Speaker 2: access their funds early.

457
00:19:47,440 --> 00:19:49,400
Speaker 1: Yeah, And I'm glad you mentioned that, Matt, But let's

458
00:19:49,400 --> 00:19:52,280
Speaker 1: say that's not what Angela Uy's after. Like, it sounds

459
00:19:52,320 --> 00:19:54,240
Speaker 1: like she's got a combo of retirement dollars, right that

460
00:19:54,720 --> 00:19:57,000
Speaker 1: some she's already paid taxes on, some she has not

461
00:19:57,080 --> 00:19:59,879
Speaker 1: paid taxes on we're talking about, and traditional dollars.

462
00:20:00,119 --> 00:20:02,240
Speaker 2: And it sounds like she's got again her own business

463
00:20:02,320 --> 00:20:04,280
Speaker 2: set up, so she's not looking to retire anytime soon.

464
00:20:04,359 --> 00:20:04,520
Speaker 5: Right.

465
00:20:04,600 --> 00:20:07,639
Speaker 1: She loves what she does exactly exactly, So I'm guessing

466
00:20:07,640 --> 00:20:10,880
Speaker 1: that early retirement is probably not on the radar, because, yeah,

467
00:20:10,880 --> 00:20:12,119
Speaker 1: when you love what you do, when you do your

468
00:20:12,119 --> 00:20:14,280
Speaker 1: own thing there, you probably want to keep going for

469
00:20:14,320 --> 00:20:17,040
Speaker 1: a while, right, Like why quit? Exactly? I like it,

470
00:20:17,080 --> 00:20:19,560
Speaker 1: and like We like for folks to have a chunk

471
00:20:19,800 --> 00:20:23,200
Speaker 1: of money in both those WROTH and traditional accounts because

472
00:20:23,200 --> 00:20:25,600
Speaker 1: it gives a lot more flexibility. People can kind of

473
00:20:25,640 --> 00:20:27,880
Speaker 1: like choose their own adventure when it comes to taxes

474
00:20:27,960 --> 00:20:30,879
Speaker 1: in retirement. If they have two different buckets to pull from,

475
00:20:30,960 --> 00:20:34,040
Speaker 1: it's just it's super helpful. But if you've got substantially

476
00:20:34,119 --> 00:20:37,040
Speaker 1: more traditional dollars, let's say Angeliki, and you've and you've

477
00:20:37,080 --> 00:20:38,840
Speaker 1: got cash on hand to pay the taxes on that

478
00:20:38,960 --> 00:20:41,760
Speaker 1: roth conversion, it might just make sense to take that

479
00:20:41,840 --> 00:20:43,800
Speaker 1: old four one k and turn it into a roth ira,

480
00:20:44,160 --> 00:20:47,320
Speaker 1: maybe even in one fell swoop. But that depends on

481
00:20:47,440 --> 00:20:50,280
Speaker 1: your current tax bracket, how much money we're talking about,

482
00:20:50,359 --> 00:20:52,480
Speaker 1: what tax bracket that would push you into, you know,

483
00:20:52,520 --> 00:20:54,480
Speaker 1: because that could mean that some of those converted dollar

484
00:20:54,680 --> 00:20:56,800
Speaker 1: dollars would be taxed at a higher rate. So without

485
00:20:56,880 --> 00:20:59,720
Speaker 1: knowing all the specifics how much money we're talking about,

486
00:21:00,080 --> 00:21:02,040
Speaker 1: it's hard to give you a complete green light on

487
00:21:02,080 --> 00:21:03,920
Speaker 1: the Hey put it all on a wrath at once,

488
00:21:03,960 --> 00:21:06,199
Speaker 1: because if it pushes a lot of those dollars into

489
00:21:06,400 --> 00:21:09,320
Speaker 1: some sort of thirty seven percent taxation range, that could

490
00:21:09,480 --> 00:21:11,480
Speaker 1: kind of I don't know, ruin next April four You

491
00:21:11,920 --> 00:21:12,479
Speaker 1: that's true.

492
00:21:12,640 --> 00:21:15,240
Speaker 2: Yeah, And basically what we're talking about here is diversifying

493
00:21:15,240 --> 00:21:18,399
Speaker 2: the tax liability of your retirement dollars. But one of

494
00:21:18,400 --> 00:21:21,960
Speaker 2: the ways to completely avoid any tax liability now is

495
00:21:22,040 --> 00:21:24,600
Speaker 2: to just funnel your traditional dollars within that four one

496
00:21:24,680 --> 00:21:27,000
Speaker 2: K from your old employer to your solo four win

497
00:21:27,080 --> 00:21:29,680
Speaker 2: K or your traditional IRA, and then we all the

498
00:21:29,720 --> 00:21:31,719
Speaker 2: WROTH dollars that are in that four oh one K

499
00:21:31,880 --> 00:21:35,040
Speaker 2: over to your wroth IRA or I think she actually

500
00:21:35,040 --> 00:21:37,000
Speaker 2: said too that she might have she has WROTH options

501
00:21:37,000 --> 00:21:38,680
Speaker 2: available within her solo four onin.

502
00:21:38,600 --> 00:21:39,040
Speaker 3: K as well.

503
00:21:39,080 --> 00:21:41,199
Speaker 2: So if that's most people do know the option, you

504
00:21:41,240 --> 00:21:43,639
Speaker 2: can consider that because like, if you take this path,

505
00:21:43,840 --> 00:21:46,760
Speaker 2: then you're essentially keeping the tax status of your old

506
00:21:46,800 --> 00:21:49,040
Speaker 2: four to one K exactly the same, but you're just

507
00:21:49,200 --> 00:21:51,960
Speaker 2: basically splitting them out into new accounts and it does

508
00:21:52,040 --> 00:21:54,960
Speaker 2: not change any of the tax liability of those retirement

509
00:21:54,960 --> 00:21:55,560
Speaker 2: dollars at all.

510
00:21:55,720 --> 00:21:58,320
Speaker 1: Yep, that's true. So if a full on WROTH conversion

511
00:21:58,359 --> 00:22:01,160
Speaker 1: doesn't make sense because you don't want or can't afford

512
00:22:01,200 --> 00:22:03,960
Speaker 1: necessarily to pay the tax right now, whether those traditional

513
00:22:04,000 --> 00:22:05,719
Speaker 1: dollars end up in your solo four O one K

514
00:22:06,359 --> 00:22:08,399
Speaker 1: or if you open up a traditional LI ray to

515
00:22:08,440 --> 00:22:11,040
Speaker 1: stick them in there. Well, the endgame is pretty similar

516
00:22:11,080 --> 00:22:13,080
Speaker 1: in a lot of ways. From a tax standpoint, You've

517
00:22:13,119 --> 00:22:15,240
Speaker 1: got just got more dollars in pre tax accounts, which

518
00:22:15,760 --> 00:22:18,320
Speaker 1: is not a bad thing. And one other reason though,

519
00:22:18,359 --> 00:22:20,760
Speaker 1: to potentially stash that money in your solo forour oh

520
00:22:20,760 --> 00:22:23,280
Speaker 1: one k instead of sticking it in the traditional IRA.

521
00:22:23,400 --> 00:22:25,639
Speaker 1: Is a couple of just arcane rules, the rule of

522
00:22:25,680 --> 00:22:28,200
Speaker 1: fifty five being one of those, and normally you would

523
00:22:28,240 --> 00:22:30,800
Speaker 1: incur a penalty for taking money out of that account

524
00:22:30,800 --> 00:22:32,440
Speaker 1: before fifty nine and a half, like Matt said just

525
00:22:32,480 --> 00:22:34,720
Speaker 1: a minute ago, but if you opt to leave your

526
00:22:34,800 --> 00:22:38,359
Speaker 1: job early, even at the business that you are currently running,

527
00:22:38,560 --> 00:22:41,000
Speaker 1: between ages fifty five and fifty nine and a half,

528
00:22:41,040 --> 00:22:44,119
Speaker 1: you can take money out of that account penalty free.

529
00:22:44,160 --> 00:22:45,840
Speaker 1: So it's kind of the rule of fifty five is

530
00:22:45,880 --> 00:22:47,639
Speaker 1: one of those things that most people don't know about it.

531
00:22:47,640 --> 00:22:50,720
Speaker 1: It's not super highly publicized, But if you leave your

532
00:22:50,800 --> 00:22:52,719
Speaker 1: job between the ages of fifty five and fifty nine

533
00:22:52,720 --> 00:22:54,720
Speaker 1: and a half, you have access. You normally pay that

534
00:22:54,720 --> 00:22:56,560
Speaker 1: ten percent penalty, but no, you went you don't have

535
00:22:56,600 --> 00:22:58,560
Speaker 1: to if you leave during that time period.

536
00:22:58,800 --> 00:23:01,800
Speaker 2: Yeah, it's like a special early enrollment window or something

537
00:23:01,800 --> 00:23:05,760
Speaker 2: like like an early trade deadline with sports teams, something

538
00:23:05,760 --> 00:23:09,280
Speaker 2: like that. But Angeliki, if Capitalize is saying that they

539
00:23:09,320 --> 00:23:11,439
Speaker 2: can't handle the four win K to the solo four

540
00:23:11,520 --> 00:23:15,000
Speaker 2: win K rollover, and that's what you want to have happened.

541
00:23:15,040 --> 00:23:17,639
Speaker 2: Because of those particular benefits that you would have access to,

542
00:23:18,119 --> 00:23:20,000
Speaker 2: we would also recommend for you to go ahead and

543
00:23:20,760 --> 00:23:25,200
Speaker 2: handle that rollover yourself. It's not crazy complicated, and given

544
00:23:25,280 --> 00:23:28,080
Speaker 2: your involvement thus far, it sounds like you're fairly versed

545
00:23:28,119 --> 00:23:31,800
Speaker 2: and how it does that these different rollovers work Capitalize,

546
00:23:31,800 --> 00:23:33,800
Speaker 2: They make it really easy, but you do have a

547
00:23:33,920 --> 00:23:38,080
Speaker 2: more nuanced and more complex situation. But that doesn't mean

548
00:23:38,119 --> 00:23:40,680
Speaker 2: that you couldn't completely handle it on your own. Just

549
00:23:40,680 --> 00:23:42,800
Speaker 2: just make sure that you do a trustee a trustee

550
00:23:42,800 --> 00:23:47,440
Speaker 2: transfer as opposed to you having them a check. Yeah,

551
00:23:47,480 --> 00:23:49,440
Speaker 2: where that clock is ticking, and if you don't get

552
00:23:49,480 --> 00:23:51,920
Speaker 2: that money invested placed within those accounts within a certain

553
00:23:51,920 --> 00:23:54,320
Speaker 2: period of time, then you get hit with that early

554
00:23:54,320 --> 00:23:57,560
Speaker 2: withdrawal penalty. You want to absolutely make sure that you

555
00:23:57,640 --> 00:24:00,119
Speaker 2: avoid doing that. That's basically the worst worse thing that

556
00:24:00,160 --> 00:24:02,680
Speaker 2: could happen. Yeah, that's true everything, Like all of you

557
00:24:02,800 --> 00:24:05,080
Speaker 2: all take it as a dispersement exactly. All these other

558
00:24:05,080 --> 00:24:06,760
Speaker 2: options are just kind of like icing on the cake.

559
00:24:07,280 --> 00:24:08,840
Speaker 2: So just make sure you don't get hit with that.

560
00:24:09,040 --> 00:24:10,960
Speaker 1: Yeah, and then the only thing you have to really

561
00:24:11,000 --> 00:24:13,159
Speaker 1: worry about is having to actually go visit a notary

562
00:24:13,160 --> 00:24:15,920
Speaker 1: in person. That might be the most annoying part of it.

563
00:24:16,040 --> 00:24:17,800
Speaker 1: But yes, it sounds like you're on the right path.

564
00:24:17,840 --> 00:24:21,480
Speaker 1: And yeah, depending on how flexible you want to be

565
00:24:21,840 --> 00:24:25,040
Speaker 1: with access to those funds and when. Hopefully we gave

566
00:24:25,040 --> 00:24:27,080
Speaker 1: you some ideas to think through. But Matt, let's get

567
00:24:27,080 --> 00:24:28,760
Speaker 1: to our next question. This one comes from a listener

568
00:24:28,920 --> 00:24:31,200
Speaker 1: who wants to make sure that his kids are set

569
00:24:31,240 --> 00:24:32,480
Speaker 1: up for financial success.

570
00:24:32,760 --> 00:24:35,280
Speaker 5: Hey guys, hope you're doing well. My name is Joe.

571
00:24:35,320 --> 00:24:37,480
Speaker 5: I'm from New Jersey. I'm a recent listener to the podcast.

572
00:24:37,520 --> 00:24:39,439
Speaker 5: I'm been tuning in for about the past few months.

573
00:24:39,560 --> 00:24:41,600
Speaker 5: I love all the information that you share, including the

574
00:24:41,600 --> 00:24:43,800
Speaker 5: craft beer views, and I'm something of a beer guy myself,

575
00:24:43,840 --> 00:24:47,080
Speaker 5: so thoroughly appreciate that. So anyway to my question, my

576
00:24:47,119 --> 00:24:48,960
Speaker 5: wife and I are mid to late forties. We have

577
00:24:49,000 --> 00:24:50,919
Speaker 5: a three and a half year old little girl and

578
00:24:50,960 --> 00:24:52,800
Speaker 5: a soon to be seven year old son and just

579
00:24:52,880 --> 00:24:54,719
Speaker 5: kind of feel late in getting them rolling as far

580
00:24:54,760 --> 00:24:57,680
Speaker 5: as long term wealth goes. We have this fear kind

581
00:24:57,680 --> 00:25:00,800
Speaker 5: of because my wife and I carry significant that we

582
00:25:00,880 --> 00:25:03,040
Speaker 5: just don't want this to be their reality when they're

583
00:25:03,080 --> 00:25:06,439
Speaker 5: our age, so minimal investments for them at this point.

584
00:25:06,480 --> 00:25:09,400
Speaker 5: But my question is, if there was one account that

585
00:25:09,560 --> 00:25:11,199
Speaker 5: we were to start for each of them today, what

586
00:25:11,240 --> 00:25:13,560
Speaker 5: would be the best option in terms of building wealth.

587
00:25:13,920 --> 00:25:17,040
Speaker 5: It's really overwhelming with you know, five twenty nine plans

588
00:25:17,600 --> 00:25:20,040
Speaker 5: roth Ira, though I'm leaning towards that. And then there's

589
00:25:20,119 --> 00:25:21,960
Speaker 5: you know, flex accounts where they can learn to spend

590
00:25:21,960 --> 00:25:25,240
Speaker 5: their own money for purchases. But again, the goal would

591
00:25:25,280 --> 00:25:29,440
Speaker 5: be generating wealth. So any of those accounts or even

592
00:25:29,520 --> 00:25:32,760
Speaker 5: just a simple higher yield savings account. Like I said,

593
00:25:32,760 --> 00:25:35,680
Speaker 5: the information can be very overwhelming. But I just want

594
00:25:35,720 --> 00:25:37,120
Speaker 5: to thank you so much for your time and again

595
00:25:37,200 --> 00:25:40,159
Speaker 5: appreciate all that you guys are doing well.

596
00:25:40,240 --> 00:25:42,480
Speaker 2: Joe, we are glad to have you as a listener.

597
00:25:42,800 --> 00:25:44,440
Speaker 2: He's been listening for a few months now. I think

598
00:25:44,440 --> 00:25:46,760
Speaker 2: he said, Uh, I'm glad you jump on the how

599
00:25:46,760 --> 00:25:49,000
Speaker 2: to money bandwagon. It's the best bandwagon to be on

600
00:25:49,040 --> 00:25:52,200
Speaker 2: that and Okay, let's see he's talking about his kids, right.

601
00:25:52,680 --> 00:25:55,720
Speaker 2: Your kids are crazy young, Joe, and I get your

602
00:25:55,720 --> 00:25:57,959
Speaker 2: desire to make sure that you were setting them up

603
00:25:58,000 --> 00:26:00,560
Speaker 2: for future success, but we don't want you to be

604
00:26:00,600 --> 00:26:02,600
Speaker 2: overwhelmed with all the investing options out there, and we

605
00:26:02,600 --> 00:26:04,640
Speaker 2: definitely don't want you to beat yourself up. I think

606
00:26:04,720 --> 00:26:07,560
Speaker 2: just the fact that you're even thinking about their future money,

607
00:26:07,600 --> 00:26:09,680
Speaker 2: their future finances right now at the stage in the game,

608
00:26:10,160 --> 00:26:10,880
Speaker 2: is massive.

609
00:26:11,600 --> 00:26:11,800
Speaker 3: Joe.

610
00:26:11,840 --> 00:26:13,879
Speaker 2: I guess what we're getting at here is that we

611
00:26:13,960 --> 00:26:15,240
Speaker 2: do love where your heart is at.

612
00:26:15,400 --> 00:26:16,240
Speaker 3: But here's the thing.

613
00:26:16,280 --> 00:26:19,840
Speaker 2: We don't actually want you investing on your kid's behalf,

614
00:26:20,640 --> 00:26:22,480
Speaker 2: at least not yet, because you said that you and

615
00:26:22,520 --> 00:26:25,320
Speaker 2: your wife that you are carrying some significant debt, right,

616
00:26:25,480 --> 00:26:28,479
Speaker 2: and if we're talking about bad debt, specifically credit card

617
00:26:28,560 --> 00:26:33,040
Speaker 2: debt in particular, or honestly just anything with upper single

618
00:26:33,200 --> 00:26:36,320
Speaker 2: or certainly in the double digit interest rates range, we

619
00:26:36,359 --> 00:26:39,600
Speaker 2: want you to be more focused on eradicating that debt

620
00:26:39,840 --> 00:26:43,360
Speaker 2: before you start investing for your kids. And so there's

621
00:26:43,400 --> 00:26:46,240
Speaker 2: two things that play here. There's the actual dollars that

622
00:26:46,240 --> 00:26:47,920
Speaker 2: you're able to put to use, but then there's also

623
00:26:48,080 --> 00:26:50,640
Speaker 2: the lessons and the habits that you're able to instill

624
00:26:50,760 --> 00:26:54,200
Speaker 2: into upon your kids, and at least for the time being,

625
00:26:54,400 --> 00:26:56,639
Speaker 2: I think that those are some of the productive steps

626
00:26:56,640 --> 00:26:58,280
Speaker 2: you can take with your kids, some of the habits

627
00:26:58,520 --> 00:27:00,959
Speaker 2: and even cluing them in a little bit as to

628
00:27:01,000 --> 00:27:03,800
Speaker 2: what it is that you and your wife are accomplishing

629
00:27:03,840 --> 00:27:07,159
Speaker 2: with your personal finances, as opposed to keeping them in

630
00:27:07,160 --> 00:27:09,560
Speaker 2: the dark and then dumping a bunch of money into

631
00:27:09,560 --> 00:27:11,920
Speaker 2: accounts for them. Like, in my mind, that's the kind

632
00:27:11,920 --> 00:27:13,240
Speaker 2: of the opposite of what you would want to.

633
00:27:13,200 --> 00:27:15,960
Speaker 1: Do, even though you're not earmarking any dollars for their

634
00:27:16,000 --> 00:27:18,639
Speaker 1: future yet not at this point, while you're focused on

635
00:27:18,720 --> 00:27:21,480
Speaker 1: other kind of personal finance necessities like Matt was just

636
00:27:21,520 --> 00:27:23,879
Speaker 1: talking about, you can still kind of bring them along

637
00:27:23,880 --> 00:27:26,840
Speaker 1: for the journey and teach them and help them understand

638
00:27:26,960 --> 00:27:29,119
Speaker 1: kind of where you guys are headed as a family

639
00:27:29,200 --> 00:27:33,439
Speaker 1: from money direction. And so it doesn't mean that you

640
00:27:33,560 --> 00:27:37,560
Speaker 1: have to start stocking money away into accounts before you're ready,

641
00:27:37,560 --> 00:27:40,760
Speaker 1: because you have other financial goals to accomplish in order

642
00:27:40,800 --> 00:27:43,320
Speaker 1: to make sure that you're teaching them about money at

643
00:27:43,320 --> 00:27:44,560
Speaker 1: the same time, right sure.

644
00:27:44,359 --> 00:27:47,359
Speaker 2: Well, yeah, And I think by not focusing on that

645
00:27:47,400 --> 00:27:49,760
Speaker 2: teaching aspect of it like that kind of discounts what

646
00:27:49,800 --> 00:27:51,760
Speaker 2: your kids are going to be capable of, right, because

647
00:27:51,800 --> 00:27:54,840
Speaker 2: right now all you're thinking about is, you know, essentially

648
00:27:54,880 --> 00:27:57,239
Speaker 2: your own income and how much disposable income you have

649
00:27:57,400 --> 00:27:59,640
Speaker 2: and what you can do with that when it comes

650
00:27:59,640 --> 00:28:02,240
Speaker 2: to paying debts or investing that money. But by it

651
00:28:02,400 --> 00:28:04,639
Speaker 2: kind of sounds pithy or whatever, but it's the lessons

652
00:28:04,680 --> 00:28:06,320
Speaker 2: of teach a man how to fish as opposed to

653
00:28:06,320 --> 00:28:07,680
Speaker 2: giving him in to fish. Yeah.

654
00:28:07,760 --> 00:28:09,879
Speaker 1: Right, And so if you are able to teach him

655
00:28:09,880 --> 00:28:11,800
Speaker 1: how to fish over the course of a lifetime, think

656
00:28:11,840 --> 00:28:14,120
Speaker 1: about all the fish that he's going to be able

657
00:28:14,119 --> 00:28:16,040
Speaker 1: to catch, that your son and your daughter that they're

658
00:28:16,080 --> 00:28:18,240
Speaker 1: going to be able to work hard and take the

659
00:28:18,359 --> 00:28:20,480
Speaker 1: lessons that they're going to learn from you and your wife. Yeah,

660
00:28:20,480 --> 00:28:23,320
Speaker 1: And I think a lot of people probably similar to Joe,

661
00:28:23,400 --> 00:28:25,960
Speaker 1: because of a sense of obligation and a sense of love.

662
00:28:26,080 --> 00:28:26,240
Speaker 3: Right.

663
00:28:26,359 --> 00:28:28,520
Speaker 1: It's a duty to your kids because you brought them

664
00:28:28,520 --> 00:28:29,959
Speaker 1: into this world, right, and you want to make sure

665
00:28:30,000 --> 00:28:32,640
Speaker 1: that you're setting them up for success. They start investing

666
00:28:32,680 --> 00:28:35,480
Speaker 1: for their kids before they've taken kind of the necessary

667
00:28:35,480 --> 00:28:37,520
Speaker 1: steps to paid on debt and to invest for their

668
00:28:37,560 --> 00:28:41,080
Speaker 1: own future and So while that love is admirable, don't

669
00:28:41,120 --> 00:28:44,440
Speaker 1: let it drive you to make financially precarious decisions. Because

670
00:28:44,440 --> 00:28:47,840
Speaker 1: there are no scholarships for retirements and your financial well

671
00:28:47,840 --> 00:28:51,440
Speaker 1: being Joe, that of you and your household as a whole,

672
00:28:51,520 --> 00:28:54,280
Speaker 1: not just for your kids and their college futures and

673
00:28:54,360 --> 00:28:56,600
Speaker 1: all that kind of stuff. Right as they become full

674
00:28:56,600 --> 00:28:58,920
Speaker 1: grown adults. That's going to mean a lot more than

675
00:28:58,920 --> 00:29:01,120
Speaker 1: a well stocked five twenty nine. The fact that you

676
00:29:01,440 --> 00:29:04,760
Speaker 1: have gotten your own finances in tip top shape so

677
00:29:05,000 --> 00:29:07,160
Speaker 1: that they don't have to support you right as you're

678
00:29:07,880 --> 00:29:10,640
Speaker 1: ending your work lifetime. That is more important, I think

679
00:29:10,640 --> 00:29:13,200
Speaker 1: than prioritizing their their five twenty nine plants. And it's

680
00:29:13,240 --> 00:29:15,520
Speaker 1: not that you might not make that a priority in three, four,

681
00:29:15,600 --> 00:29:17,800
Speaker 1: five years time, depending on how much progress you've made,

682
00:29:17,880 --> 00:29:20,080
Speaker 1: but it's just not the right move to make right now.

683
00:29:20,280 --> 00:29:22,800
Speaker 2: Yeah, it's not that saving and investing for your kids

684
00:29:22,920 --> 00:29:25,160
Speaker 2: is a bad thing, but if you get your financial

685
00:29:25,160 --> 00:29:28,640
Speaker 2: priorities out of order, well, that can lead you leave

686
00:29:28,680 --> 00:29:31,160
Speaker 2: you in a vulnerable financial position. That's what we talked

687
00:29:31,160 --> 00:29:33,760
Speaker 2: about in a recent episode six fifty three. Listen back

688
00:29:33,760 --> 00:29:36,920
Speaker 2: to our money gears. That is all about getting all

689
00:29:36,920 --> 00:29:39,960
Speaker 2: of those different financial steps in the right order. But Joe,

690
00:29:40,200 --> 00:29:42,880
Speaker 2: let's say you make some progress when it comes to

691
00:29:42,920 --> 00:29:45,200
Speaker 2: your personal finances, right Like, let's say over the coming

692
00:29:45,240 --> 00:29:47,960
Speaker 2: months or over the next couple of years, you're able

693
00:29:48,000 --> 00:29:52,080
Speaker 2: to eliminate those high interest rate debts. Let's say you

694
00:29:52,160 --> 00:29:55,200
Speaker 2: are saving over fifteen percent of your income in tax

695
00:29:55,240 --> 00:29:57,520
Speaker 2: advantage accounts like a four to one K or in

696
00:29:57,560 --> 00:30:01,280
Speaker 2: your own IRA. Maybe you're even funneling some towards an HSA,

697
00:30:01,480 --> 00:30:05,640
Speaker 2: the triple or even quadruple tax advantage retirement account. And

698
00:30:05,680 --> 00:30:08,360
Speaker 2: then you've got extra money at that point, well, then

699
00:30:08,920 --> 00:30:10,840
Speaker 2: that's when you might want to put some money aside

700
00:30:10,880 --> 00:30:13,800
Speaker 2: for your kid's future, and in that case, the best

701
00:30:13,840 --> 00:30:17,200
Speaker 2: account for that is a five to twenty nine account,

702
00:30:17,880 --> 00:30:20,840
Speaker 2: largely because of the flexibility that they offer. If that

703
00:30:20,920 --> 00:30:23,880
Speaker 2: money isn't needed for college for higher education, you can

704
00:30:23,960 --> 00:30:27,840
Speaker 2: then turn that money into rough IRA money for their

705
00:30:27,840 --> 00:30:30,560
Speaker 2: long term future. You mentioned some different spending accounts for

706
00:30:30,560 --> 00:30:32,280
Speaker 2: them to learn how to handle their money. I think

707
00:30:32,560 --> 00:30:35,040
Speaker 2: honestly a lot of those lessons can be learned just

708
00:30:35,080 --> 00:30:37,479
Speaker 2: by dealing in cash. The ability for them to have

709
00:30:37,520 --> 00:30:39,640
Speaker 2: money on hand where it's tangible, where they're able to

710
00:30:39,640 --> 00:30:41,959
Speaker 2: see that, oh, I earned this actual, you know, this

711
00:30:42,080 --> 00:30:45,240
Speaker 2: physical tangible money from doing some chores I can now

712
00:30:45,440 --> 00:30:47,520
Speaker 2: or from setting up a lemonade stand. I can now

713
00:30:47,600 --> 00:30:50,440
Speaker 2: use that money to buy lemonade from the next kid

714
00:30:50,440 --> 00:30:52,560
Speaker 2: in the neighborhood that decides to set up their own

715
00:30:52,600 --> 00:30:55,600
Speaker 2: limonade stand. But as far as some of those early

716
00:30:55,760 --> 00:30:58,400
Speaker 2: financial habits, I think that can be the simplest way.

717
00:30:58,560 --> 00:31:01,160
Speaker 2: I think there's no need to necessally complicate it with

718
00:31:01,600 --> 00:31:03,040
Speaker 2: separate standalone accounts.

719
00:31:03,080 --> 00:31:03,960
Speaker 3: Yeah, yeah, I agree.

720
00:31:04,000 --> 00:31:06,320
Speaker 1: I think just depending on what age they are and

721
00:31:06,320 --> 00:31:07,720
Speaker 1: the older they get, you might want to open up

722
00:31:07,720 --> 00:31:09,880
Speaker 1: a bank account, talk to them about earning interest, and

723
00:31:09,920 --> 00:31:11,920
Speaker 1: you might want to help them find an account that

724
00:31:11,960 --> 00:31:14,560
Speaker 1: prioritizes paying a higher rate of interest. But in those

725
00:31:14,600 --> 00:31:16,959
Speaker 1: early years, the best thing you can do is to

726
00:31:17,080 --> 00:31:20,800
Speaker 1: kind of help them correlate work and income, right, And

727
00:31:20,840 --> 00:31:24,480
Speaker 1: so they do some entrepreneurial entrepreneurial ventures. Maybe they clean

728
00:31:24,520 --> 00:31:26,160
Speaker 1: out some of their old toys and sell them down

729
00:31:26,240 --> 00:31:28,320
Speaker 1: the street. They make twenty bucks, and then they can

730
00:31:28,360 --> 00:31:29,880
Speaker 1: decide what to do with that, and you help them

731
00:31:30,120 --> 00:31:32,480
Speaker 1: figure out how to save, give, and spend some of

732
00:31:32,480 --> 00:31:35,000
Speaker 1: those dollars. Yeah, but I guess really, we don't want

733
00:31:35,040 --> 00:31:37,360
Speaker 1: you focused on funding those five to twenty nine accounts

734
00:31:37,480 --> 00:31:39,760
Speaker 1: until you're ready. With one minor exception, by the way,

735
00:31:40,200 --> 00:31:42,240
Speaker 1: we would say, open the accounts for each of them

736
00:31:42,280 --> 00:31:44,720
Speaker 1: with the minimum required to open them, which is typically

737
00:31:44,760 --> 00:31:47,640
Speaker 1: like twenty to twenty five bucks because of a recent

738
00:31:47,720 --> 00:31:50,320
Speaker 1: rule change. This starts important clock ticking, the fifteen year

739
00:31:50,320 --> 00:31:52,320
Speaker 1: timeline that you have to meet right in order to

740
00:31:52,400 --> 00:31:54,480
Speaker 1: roll those funds into a roth in the future. But

741
00:31:55,160 --> 00:31:58,120
Speaker 1: just because you've opened that five twenty nine account on

742
00:31:58,160 --> 00:32:00,720
Speaker 1: their behalf doesn't mean you should be funny regularly. So

743
00:32:00,880 --> 00:32:03,640
Speaker 1: open it up, don't actually contribute more than you need

744
00:32:03,680 --> 00:32:06,240
Speaker 1: to take care of your own personal finances first the

745
00:32:06,280 --> 00:32:09,040
Speaker 1: oxygen mask on your face before you stick it on theirs,

746
00:32:09,240 --> 00:32:11,959
Speaker 1: and keep working towards those important financial goals that you

747
00:32:11,960 --> 00:32:15,160
Speaker 1: have for yourself before you start taking care of your kids,

748
00:32:15,280 --> 00:32:18,160
Speaker 1: at least from a monetary perspective, keep teaching them you

749
00:32:18,160 --> 00:32:20,280
Speaker 1: don't necessarily funnel dollars in that direction yet.

750
00:32:20,400 --> 00:32:22,160
Speaker 2: That's right, man, Yeah, all right. We've got a couple

751
00:32:22,200 --> 00:32:25,440
Speaker 2: more questions to get to, including that question from a

752
00:32:25,480 --> 00:32:28,080
Speaker 2: listener who's wondering if his retirement savings are safe. We'll

753
00:32:28,120 --> 00:32:29,960
Speaker 2: get to that plus one other right after this.

754
00:32:39,480 --> 00:32:40,239
Speaker 3: All right, Matt, we're back.

755
00:32:40,280 --> 00:32:42,960
Speaker 1: We're going to get to that retirement insurance question in

756
00:32:43,080 --> 00:32:44,920
Speaker 1: just a second, which I'm sure is on the minds

757
00:32:44,920 --> 00:32:47,120
Speaker 1: of a lot of people these days. But first let's

758
00:32:47,120 --> 00:32:50,080
Speaker 1: get to one from another listener who wants to know

759
00:32:50,120 --> 00:32:53,160
Speaker 1: about whether he should be treating his personal finances in

760
00:32:53,200 --> 00:32:54,640
Speaker 1: a more businesslike fashion.

761
00:32:55,040 --> 00:32:57,440
Speaker 7: Aygensis is mad in Tampa. I work for an IT

762
00:32:57,720 --> 00:33:01,360
Speaker 7: startup that does business with other businesses. Being in a startup,

763
00:33:01,400 --> 00:33:03,360
Speaker 7: as you guys know, means that I sometimes have to

764
00:33:03,360 --> 00:33:06,520
Speaker 7: wear a couple different hats. One of the bigger surprises

765
00:33:06,560 --> 00:33:09,040
Speaker 7: I've had when working with our clients is having to

766
00:33:09,080 --> 00:33:12,720
Speaker 7: remind them to pay us. They are routinely sixty to

767
00:33:12,840 --> 00:33:16,360
Speaker 7: ninety days past two, and that apparently is just how

768
00:33:16,400 --> 00:33:19,520
Speaker 7: they operate with all of their vendors. That is really

769
00:33:19,560 --> 00:33:22,480
Speaker 7: foreign to me, because in my personal life, I'm used

770
00:33:22,520 --> 00:33:25,600
Speaker 7: to paying a bill as soon as I receive it. However,

771
00:33:25,640 --> 00:33:28,080
Speaker 7: the past couple months have been a little more paycheck

772
00:33:28,120 --> 00:33:30,719
Speaker 7: to paycheck for me. I even thought I was going

773
00:33:30,760 --> 00:33:33,320
Speaker 7: to have to stop my automatic deposits for my savings

774
00:33:33,320 --> 00:33:36,320
Speaker 7: and wrought this month just to make do until I

775
00:33:36,400 --> 00:33:38,400
Speaker 7: realize I'd be okay if I waited to pay my

776
00:33:38,520 --> 00:33:42,000
Speaker 7: credit card bill until the last day that it's due.

777
00:33:42,360 --> 00:33:46,840
Speaker 7: So my question is, should I operate my finances a

778
00:33:46,920 --> 00:33:50,400
Speaker 7: little more like a business and wait to pay bills

779
00:33:50,800 --> 00:33:55,040
Speaker 7: until the very last day that they are due instead

780
00:33:55,040 --> 00:33:57,600
Speaker 7: of paying them right when I receive them. Thanks in

781
00:33:57,600 --> 00:33:58,520
Speaker 7: advance for the advice.

782
00:33:59,240 --> 00:34:01,840
Speaker 2: Oh right, Like Matt is wearing the hat of accounts

783
00:34:01,840 --> 00:34:05,120
Speaker 2: payable at his new startup in addition to whatever he

784
00:34:05,240 --> 00:34:08,440
Speaker 2: was actually hired for. But Matt, we hear you. Businesses

785
00:34:08,600 --> 00:34:11,879
Speaker 2: often wait to pay invoices until they're like sixty ninety

786
00:34:11,920 --> 00:34:14,160
Speaker 2: days do they get the vendor aging report. It can

787
00:34:14,239 --> 00:34:17,120
Speaker 2: be maddening. But for you, I think maybe even like

788
00:34:17,160 --> 00:34:20,000
Speaker 2: setting some payment expectation timelines upfront, that could be helpful.

789
00:34:20,600 --> 00:34:24,240
Speaker 2: So can automatic invoice reminders, depending on the different accounting

790
00:34:24,280 --> 00:34:26,600
Speaker 2: software you have set up, or depending on even there's

791
00:34:26,640 --> 00:34:29,520
Speaker 2: different business checking accounts that have some of those features

792
00:34:29,520 --> 00:34:32,600
Speaker 2: built into them as well. But what you're talking about

793
00:34:32,640 --> 00:34:35,359
Speaker 2: not You're not talking about business finances here. You're talking

794
00:34:35,360 --> 00:34:37,840
Speaker 2: about your personal finances, and of course we want you

795
00:34:37,920 --> 00:34:41,680
Speaker 2: to continue those automatic contributions to your savings and your wroth.

796
00:34:41,719 --> 00:34:44,759
Speaker 2: We don't want you to delay or to postpone the

797
00:34:44,800 --> 00:34:47,279
Speaker 2: amount that you're sitting aside for retirement. They should be

798
00:34:47,320 --> 00:34:49,960
Speaker 2: top priorities. Granted, you've got to pay your rent, you

799
00:34:50,000 --> 00:34:51,880
Speaker 2: got to buy groceries, and you want to make sure

800
00:34:51,920 --> 00:34:54,400
Speaker 2: that you're paying that credit card bill on time, but

801
00:34:54,600 --> 00:34:57,400
Speaker 2: waiting to pay it so that you can continue to

802
00:34:57,400 --> 00:34:59,799
Speaker 2: save and invest for your future. We think that that's

803
00:34:59,840 --> 00:35:02,040
Speaker 2: a solid move. Of course, we don't want you to

804
00:35:02,080 --> 00:35:04,080
Speaker 2: pay late, but as long as you are not racking

805
00:35:04,160 --> 00:35:07,839
Speaker 2: up any fees or any interest because you are still

806
00:35:07,840 --> 00:35:09,799
Speaker 2: paying on time, of course, I think it's all good.

807
00:35:09,920 --> 00:35:12,160
Speaker 2: I certainly get the impulse to pay early, you know,

808
00:35:12,160 --> 00:35:14,719
Speaker 2: specifically to pay that bill as soon as you get it,

809
00:35:14,760 --> 00:35:17,279
Speaker 2: but there's really no need. And plus there's just that

810
00:35:17,360 --> 00:35:19,839
Speaker 2: added bonus of being able to earn a little bit

811
00:35:19,880 --> 00:35:22,160
Speaker 2: more on the money that you're hanging onto in your

812
00:35:22,239 --> 00:35:23,320
Speaker 2: checking account.

813
00:35:22,960 --> 00:35:23,840
Speaker 3: A little bit on that spread.

814
00:35:24,120 --> 00:35:25,719
Speaker 2: Yeah, I mean it's not much like I think we're

815
00:35:25,760 --> 00:35:28,239
Speaker 2: talking like fifteen twenty bucks a month, but you take

816
00:35:28,239 --> 00:35:31,560
Speaker 2: that times twelve, that's you know, that's enough for visiting

817
00:35:31,560 --> 00:35:33,120
Speaker 2: a nice brewery.

818
00:35:33,280 --> 00:35:35,400
Speaker 1: Yeah, that with interest rates going up, that money on

819
00:35:35,440 --> 00:35:37,640
Speaker 1: savings that even if you know you got a four

820
00:35:37,719 --> 00:35:39,880
Speaker 1: or five extra grand because you're waiting to pay your

821
00:35:40,560 --> 00:35:43,279
Speaker 1: credit card bill. Well, when we're talking about rates at

822
00:35:43,320 --> 00:35:46,040
Speaker 1: four percent or north of that. Now, yeah, you were

823
00:35:46,040 --> 00:35:49,080
Speaker 1: talking about earning some money by delaying paying your credit

824
00:35:49,120 --> 00:35:50,879
Speaker 1: card bill and not passed, of course the due date,

825
00:35:51,080 --> 00:35:53,400
Speaker 1: like you said. Yeah, and you know, once you've gotten

826
00:35:53,400 --> 00:35:55,239
Speaker 1: some other things in order. By the way, Matt, you

827
00:35:55,320 --> 00:35:56,880
Speaker 1: might be able to go back to paying your bills

828
00:35:56,920 --> 00:35:59,160
Speaker 1: earlier in the cycle. If that is important to you,

829
00:35:59,239 --> 00:36:01,200
Speaker 1: I think you'll figure out that maybe it doesn't matter,

830
00:36:01,320 --> 00:36:03,640
Speaker 1: especially as long as you've got it automated, like automate

831
00:36:03,719 --> 00:36:05,839
Speaker 1: to pay it on the day that the bill is due.

832
00:36:06,040 --> 00:36:08,000
Speaker 1: That way, you don't really have to think about it.

833
00:36:08,200 --> 00:36:10,120
Speaker 1: But you mentioned that it felt like you were getting

834
00:36:10,200 --> 00:36:12,640
Speaker 1: close to living paycheck to paycheck there, which man, I

835
00:36:12,640 --> 00:36:15,399
Speaker 1: don't like hearing that. That should be even more reason though,

836
00:36:15,440 --> 00:36:18,360
Speaker 1: to incentivize savings. So getting to the point where you

837
00:36:18,400 --> 00:36:20,640
Speaker 1: have three to six months worth of expenses in your

838
00:36:20,719 --> 00:36:24,399
Speaker 1: high yielded savings account is a really, really important goal

839
00:36:24,560 --> 00:36:26,760
Speaker 1: to set out, and it allows for you to pay

840
00:36:26,920 --> 00:36:30,320
Speaker 1: those bills with seasoned money, like money that's been sitting

841
00:36:30,360 --> 00:36:33,360
Speaker 1: in your account for a while, which is crucial so

842
00:36:33,400 --> 00:36:35,920
Speaker 1: that you're not stressing over payment dates and whether or

843
00:36:35,920 --> 00:36:37,640
Speaker 1: not you're going to be able to achieve those goals

844
00:36:37,640 --> 00:36:40,080
Speaker 1: you've got either, I think having the money on hand

845
00:36:40,440 --> 00:36:43,839
Speaker 1: and building up basically a bulwark of savings behind you,

846
00:36:44,280 --> 00:36:46,080
Speaker 1: it not only gives you like a whole lot of

847
00:36:46,080 --> 00:36:48,000
Speaker 1: financial margin, but it gives you just a whole lot

848
00:36:48,040 --> 00:36:50,880
Speaker 1: of just breathing room. And it's a massive anxiety and

849
00:36:50,880 --> 00:36:52,200
Speaker 1: stressor leaver at the same time.

850
00:36:52,239 --> 00:36:54,160
Speaker 2: That's right, Yeah, and Matt, we love the idea of

851
00:36:54,160 --> 00:36:57,960
Speaker 2: you operating your personal plannings is in a more businesslike manner.

852
00:36:58,040 --> 00:37:00,879
Speaker 2: Overall businesses they know where they're not He's going, and

853
00:37:00,960 --> 00:37:02,560
Speaker 2: we want you to do the same. And so make

854
00:37:02,560 --> 00:37:05,799
Speaker 2: sure that you are funneling your dollars just towards the

855
00:37:05,800 --> 00:37:09,120
Speaker 2: most important goals first, the goals that you have prioritize,

856
00:37:09,200 --> 00:37:11,200
Speaker 2: because if you don't have a plan for your business,

857
00:37:11,239 --> 00:37:13,000
Speaker 2: what it is that you're striving after what your business

858
00:37:13,040 --> 00:37:15,120
Speaker 2: goals are, is going to flounder. And similarly, if you

859
00:37:15,120 --> 00:37:18,360
Speaker 2: don't have a plan for your personal finances, you're likely

860
00:37:18,440 --> 00:37:20,719
Speaker 2: just going to be barely treading water, kind of like

861
00:37:20,719 --> 00:37:23,399
Speaker 2: a company holds a quarterly earnings call, maybe like having

862
00:37:23,360 --> 00:37:25,680
Speaker 2: an in depth check in once a quarter to see

863
00:37:25,719 --> 00:37:28,080
Speaker 2: how things are going. You want to ask yourself the

864
00:37:28,160 --> 00:37:30,240
Speaker 2: question like like am I making progress to the different

865
00:37:30,280 --> 00:37:32,320
Speaker 2: goals that I've set, you know, set out for myself.

866
00:37:32,960 --> 00:37:36,040
Speaker 2: You need to see your own personal finances, Like essentially

867
00:37:36,080 --> 00:37:39,399
Speaker 2: you're the CFO of your own bank account. You've got

868
00:37:40,080 --> 00:37:41,920
Speaker 2: you know the CFO. They're at your company, and they

869
00:37:41,960 --> 00:37:44,200
Speaker 2: are the ones they're trying to make sure that they're

870
00:37:44,200 --> 00:37:46,600
Speaker 2: achieving all the different financial goals. That's who that's the

871
00:37:46,680 --> 00:37:48,719
Speaker 2: role that you get to play within your own life.

872
00:37:48,800 --> 00:37:50,560
Speaker 1: Yeah, and if you're like as an individual, you say

873
00:37:50,560 --> 00:37:52,720
Speaker 1: I want more vacation time, we'll go ask the CFO

874
00:37:52,840 --> 00:37:55,440
Speaker 1: and figure out based on the numbers, like do you

875
00:37:55,560 --> 00:37:57,319
Speaker 1: have the money? Have you been able to save up?

876
00:37:57,480 --> 00:37:59,359
Speaker 1: And if not, if you don't have it yet, well

877
00:37:59,600 --> 00:38:00,520
Speaker 1: how am I go and get there?

878
00:38:00,560 --> 00:38:00,640
Speaker 5: Like?

879
00:38:00,680 --> 00:38:02,719
Speaker 1: How am I actually going to set a plan in

880
00:38:02,760 --> 00:38:04,520
Speaker 1: motion to make sure that I have the money to

881
00:38:05,320 --> 00:38:09,759
Speaker 1: pop over to Belgium or something for a week. It's

882
00:38:09,760 --> 00:38:11,680
Speaker 1: going to take intentionality, it's going to take a business

883
00:38:11,760 --> 00:38:14,000
Speaker 1: like focus to your finances to make that happen totally.

884
00:38:14,040 --> 00:38:15,799
Speaker 1: But the same thing is true when when you talk

885
00:38:15,800 --> 00:38:18,200
Speaker 1: about getting that breathing room, getting that margin, having more

886
00:38:18,239 --> 00:38:20,320
Speaker 1: money on hand, it's you don't need a plan to

887
00:38:20,360 --> 00:38:23,879
Speaker 1: get there as well. But yeah, your initial question about

888
00:38:24,000 --> 00:38:27,000
Speaker 1: kind of waiting to pay that credit card off, why not. Yeah,

889
00:38:27,000 --> 00:38:29,040
Speaker 1: we're all for it. But then, yeah, make sure that

890
00:38:29,080 --> 00:38:31,160
Speaker 1: you start making progress on some of those other things

891
00:38:31,400 --> 00:38:34,240
Speaker 1: that are just going to bolster your personal finances allowing

892
00:38:34,280 --> 00:38:36,080
Speaker 1: you to make the progress that you want to make.

893
00:38:36,440 --> 00:38:38,239
Speaker 2: That's right, But bottom line, we love how it is

894
00:38:38,239 --> 00:38:40,200
Speaker 2: that you're using credit cards essentially, like we want to

895
00:38:40,200 --> 00:38:41,440
Speaker 2: make sure that we always touch on this that you

896
00:38:41,440 --> 00:38:42,040
Speaker 2: always use.

897
00:38:41,960 --> 00:38:43,960
Speaker 3: Your credit cards as if it's like cash.

898
00:38:43,960 --> 00:38:46,120
Speaker 2: And for that reason, Matt, I love the fact that

899
00:38:46,160 --> 00:38:48,960
Speaker 2: you are paying those bills off right away, but instead

900
00:38:49,000 --> 00:38:51,000
Speaker 2: when those bills show up, go ahead and schedule that

901
00:38:51,040 --> 00:38:52,759
Speaker 2: payment as soon as you receive that bill. But you

902
00:38:52,760 --> 00:38:55,440
Speaker 2: can schedule it for personally, what I do. I always

903
00:38:55,560 --> 00:38:58,080
Speaker 2: set it for the date before it's actually due, which

904
00:38:58,080 --> 00:39:00,360
Speaker 2: is typically like two or three weeks away. And in

905
00:39:00,440 --> 00:39:01,960
Speaker 2: the meantime, like you said, Jill, he can earn that

906
00:39:01,960 --> 00:39:05,120
Speaker 2: spread on those limited number of dollars. It's not a lot,

907
00:39:05,160 --> 00:39:07,840
Speaker 2: but it's something. Joel is here from a listener, and

908
00:39:07,880 --> 00:39:09,399
Speaker 2: this is going to be our last question of the day,

909
00:39:09,440 --> 00:39:11,680
Speaker 2: and he wants to know whether or not his investments

910
00:39:11,719 --> 00:39:12,360
Speaker 2: are safe.

911
00:39:13,080 --> 00:39:15,920
Speaker 8: Hi, Mann and Joel, this is Danny from Connecticut. The

912
00:39:15,960 --> 00:39:18,320
Speaker 8: recent bank failures have got me thinking a lot about

913
00:39:18,320 --> 00:39:22,400
Speaker 8: IRA's and especially the banks and brokerage firms that service them.

914
00:39:22,719 --> 00:39:26,600
Speaker 8: What if Vanguard, Fidelity or Schwab were to fail. I

915
00:39:26,640 --> 00:39:29,840
Speaker 8: read that the SIPC provides insurance for these accounts, but

916
00:39:29,920 --> 00:39:32,640
Speaker 8: only up to a point. Say I've spent my whole

917
00:39:32,640 --> 00:39:35,400
Speaker 8: working life socking away money in index funds within a

918
00:39:35,400 --> 00:39:38,120
Speaker 8: four oh one K, but one day the brokerage firm

919
00:39:38,239 --> 00:39:42,600
Speaker 8: goes under all of a sudden, my diversified portfolio looks

920
00:39:42,640 --> 00:39:45,960
Speaker 8: a lot less diversified. I realized this is yet another

921
00:39:46,000 --> 00:39:48,759
Speaker 8: good reason to choose different classes of investments and to

922
00:39:48,880 --> 00:39:52,280
Speaker 8: use both pre tax and post tax retirement accounts. But still,

923
00:39:52,320 --> 00:39:55,400
Speaker 8: isn't that a tremendous vulnerability for owners of higher balance

924
00:39:55,440 --> 00:39:58,720
Speaker 8: retirement accounts. I know it seems super unlikely that Vanguard

925
00:39:58,760 --> 00:40:00,439
Speaker 8: or the others will fail, but I just think back

926
00:40:00,440 --> 00:40:04,000
Speaker 8: to bear Stearns and Layman Brothers in two thousand and eight. Now,

927
00:40:04,080 --> 00:40:06,520
Speaker 8: in case you were wondering, No, I'm not rushing out

928
00:40:06,560 --> 00:40:09,080
Speaker 8: to buy gold bricks and bury them in my backyard.

929
00:40:09,360 --> 00:40:12,240
Speaker 8: But I did recently invest in a juicy double IPA

930
00:40:12,680 --> 00:40:14,239
Speaker 8: and I thought of you guys yesterday while I was

931
00:40:14,320 --> 00:40:17,160
Speaker 8: drinking it. Thanks for being great and thanks for your response.

932
00:40:18,000 --> 00:40:20,560
Speaker 1: I'm at a double ipa the best investment a person

933
00:40:20,600 --> 00:40:21,480
Speaker 1: could make, am I right?

934
00:40:21,840 --> 00:40:23,120
Speaker 3: Absolutely? I mean we're I'm.

935
00:40:23,000 --> 00:40:26,359
Speaker 1: Actually really picky about what I call an investment, and

936
00:40:26,440 --> 00:40:28,600
Speaker 1: some people will say some people will sometimes be like,

937
00:40:28,680 --> 00:40:31,720
Speaker 1: I just invested in this vehicle or I just invested

938
00:40:31,920 --> 00:40:33,000
Speaker 1: in a new TV, and I'm.

939
00:40:32,840 --> 00:40:34,080
Speaker 2: Like, just invested in some new shoes.

940
00:40:34,120 --> 00:40:36,440
Speaker 1: You're using the wrong term, guys, But I think we

941
00:40:36,520 --> 00:40:39,440
Speaker 1: can actually use that. That term does apply to to

942
00:40:39,520 --> 00:40:42,200
Speaker 1: good beer, right, because yeah, you're making investment in your

943
00:40:42,280 --> 00:40:45,680
Speaker 1: joy meter something like that. But we've talked a lot

944
00:40:45,680 --> 00:40:48,040
Speaker 1: about FDIC insurance over the past couple of months on

945
00:40:48,040 --> 00:40:51,239
Speaker 1: the show in the wake of the SVB failure and

946
00:40:51,480 --> 00:40:53,640
Speaker 1: the subsequent banking concerns that have been top of mind,

947
00:40:53,880 --> 00:40:56,319
Speaker 1: and we've even kind of given our own prescription for

948
00:40:56,480 --> 00:41:00,600
Speaker 1: FDIC insurance and saying that, man, what if we asked

949
00:41:00,600 --> 00:41:03,920
Speaker 1: account holders to self insured to pay into that insurance

950
00:41:03,920 --> 00:41:06,480
Speaker 1: bucket if they want more insurance than kind of that

951
00:41:06,840 --> 00:41:09,680
Speaker 1: base level amount. But we haven't really talked about how

952
00:41:09,719 --> 00:41:13,200
Speaker 1: your investment dollars are insured. And so Danny, thanks for

953
00:41:13,200 --> 00:41:15,399
Speaker 1: this question, man, because I think it's going to allow

954
00:41:15,440 --> 00:41:17,239
Speaker 1: us to do just that, and hopefully it's going to

955
00:41:17,280 --> 00:41:19,960
Speaker 1: provide a lot of peace of mind for everyone out

956
00:41:19,960 --> 00:41:23,680
Speaker 1: there who is investing and they're like they're nervous. Then

957
00:41:23,719 --> 00:41:26,080
Speaker 1: maybe there's going to be some sort of collateral damage

958
00:41:26,400 --> 00:41:29,640
Speaker 1: to brokerage firms based on what's happening in kind of

959
00:41:29,640 --> 00:41:31,040
Speaker 1: the banking sphere around the country.

960
00:41:31,200 --> 00:41:31,399
Speaker 3: Yeah.

961
00:41:31,440 --> 00:41:33,200
Speaker 2: Well, first, let's just hope that none of our favorite

962
00:41:33,200 --> 00:41:37,640
Speaker 2: discount brokerages fail, because we are huge fans in particular

963
00:41:37,800 --> 00:41:42,840
Speaker 2: of Fidelity, Vanguard and Schwab Chuck. But let's say that

964
00:41:42,840 --> 00:41:45,040
Speaker 2: they did, right, what would happened to the money that

965
00:41:45,120 --> 00:41:47,840
Speaker 2: you've invested inside of them? Well, Danny, it's important to

966
00:41:47,880 --> 00:41:51,000
Speaker 2: note that your dollars, your money is invested in the

967
00:41:51,120 --> 00:41:55,279
Speaker 2: underlying funds which owns stocks and bonds, and so if

968
00:41:55,280 --> 00:41:59,080
Speaker 2: the account administrator right, so Vanguard or Fidelity, if they

969
00:41:59,120 --> 00:42:02,160
Speaker 2: go bust, your money is not at risk. The dollars

970
00:42:02,200 --> 00:42:04,799
Speaker 2: that you have in the funds is safe obviously not

971
00:42:04,840 --> 00:42:07,719
Speaker 2: from volatility, but it is safe because you own the

972
00:42:07,800 --> 00:42:12,520
Speaker 2: assets inside of that fund. You own the underlying securities there.

973
00:42:12,840 --> 00:42:15,480
Speaker 2: And so just because, for instance, Fidelity, let's say they fail,

974
00:42:16,080 --> 00:42:19,080
Speaker 2: that doesn't mean that you don't own your shares of

975
00:42:19,520 --> 00:42:24,440
Speaker 2: Tesla or Google or Meta or preferably your Total Stock

976
00:42:24,440 --> 00:42:27,040
Speaker 2: Market index fund or your S and P index fund.

977
00:42:27,160 --> 00:42:29,040
Speaker 2: Your assets are going to be secure, and they would

978
00:42:29,080 --> 00:42:32,759
Speaker 2: basically be transferred to another registered brokerage firm in the

979
00:42:32,840 --> 00:42:35,920
Speaker 2: event that the one that you do do business with,

980
00:42:35,960 --> 00:42:37,120
Speaker 2: the one that you haven't account with.

981
00:42:37,280 --> 00:42:39,680
Speaker 1: Were they to go belly up. Yeah, all right, so

982
00:42:39,760 --> 00:42:41,840
Speaker 1: let's talk that's important to mention, Matt. I think some

983
00:42:41,880 --> 00:42:45,200
Speaker 1: people think that Vanguard is like holding all of your

984
00:42:45,200 --> 00:42:46,920
Speaker 1: money they're choosing what to do with it. But no,

985
00:42:47,360 --> 00:42:50,960
Speaker 1: that's not exactly how it works. There's a custodian that yeah,

986
00:42:51,040 --> 00:42:52,120
Speaker 1: handles that's the best work.

987
00:42:52,160 --> 00:42:52,640
Speaker 3: Yeah. Yeah.

988
00:42:52,840 --> 00:42:54,880
Speaker 2: So like you're not invested with Fidelity or you're not

989
00:42:54,920 --> 00:42:58,600
Speaker 2: investing in Vanguard, you are investing in the funds that

990
00:42:58,680 --> 00:43:01,399
Speaker 2: they help you to get into. You truly are still

991
00:43:01,400 --> 00:43:03,120
Speaker 2: like a matchmaker, right yeah, and.

992
00:43:03,000 --> 00:43:05,480
Speaker 1: You truly are investing in slices and dices of a

993
00:43:05,480 --> 00:43:07,520
Speaker 1: bunch of different businesses when you buy some of these

994
00:43:07,560 --> 00:43:09,000
Speaker 1: funds that we talk about, some of the index funds

995
00:43:09,000 --> 00:43:10,640
Speaker 1: that we talk about on the show. But let's talk

996
00:43:10,640 --> 00:43:15,239
Speaker 1: about CIPICK Matt the Securities Investor Protection Corporation, which is

997
00:43:15,440 --> 00:43:20,320
Speaker 1: kind of like the investing the brokerage equivalent of FDIC insurance,

998
00:43:20,719 --> 00:43:23,600
Speaker 1: and like basically, they would come in and they would

999
00:43:23,640 --> 00:43:27,600
Speaker 1: take over customer accounts, finding another registered brokerage firm to

1000
00:43:27,680 --> 00:43:31,120
Speaker 1: manage them. For the now homeless customers who have lost

1001
00:43:31,280 --> 00:43:36,080
Speaker 1: their favorite brokerage company, I prefer orphaned. Yes, that's probably

1002
00:43:36,080 --> 00:43:39,440
Speaker 1: a better term. Well, and let's dig deeper on CIPIC

1003
00:43:39,520 --> 00:43:42,400
Speaker 1: coverage because how much of your investments are actually insured.

1004
00:43:42,440 --> 00:43:45,080
Speaker 1: That's an important question to answer here too, Not that

1005
00:43:45,120 --> 00:43:46,920
Speaker 1: I think it's going to come to that, but the

1006
00:43:46,960 --> 00:43:50,280
Speaker 1: headline number is five hundred thousand dollars worth of coverage

1007
00:43:50,400 --> 00:43:53,440
Speaker 1: for cash and securities held with the brokerage firm if

1008
00:43:53,480 --> 00:43:57,040
Speaker 1: they were forced into bankruptcy. But just like FDIC insurance,

1009
00:43:57,120 --> 00:43:59,080
Speaker 1: there's more to the story. We talked about how you

1010
00:43:59,120 --> 00:44:02,640
Speaker 1: can get more f ICEE insurance coverage kind of based

1011
00:44:02,680 --> 00:44:06,040
Speaker 1: on the number of accounts whether or not their joint

1012
00:44:06,040 --> 00:44:08,680
Speaker 1: in ownership stuff like that, and most folks are actually

1013
00:44:08,680 --> 00:44:11,279
Speaker 1: protected to a greater degree. The same is true with

1014
00:44:11,480 --> 00:44:14,960
Speaker 1: CIPIC coverage because each account that you have is actually

1015
00:44:15,000 --> 00:44:17,279
Speaker 1: protected with five hundred thousand dollars worth of coverage. So

1016
00:44:17,320 --> 00:44:19,440
Speaker 1: let's say you have a roth IRA, a traditional IRA,

1017
00:44:19,680 --> 00:44:22,440
Speaker 1: and a four to one k all under one brokerage roof, Well,

1018
00:44:22,480 --> 00:44:25,200
Speaker 1: each account comes with that five hundred thousand dollars umbrella

1019
00:44:25,200 --> 00:44:27,839
Speaker 1: of coverage, which is one point five million dollars worth

1020
00:44:27,880 --> 00:44:30,680
Speaker 1: of coverage. Danny, not sure how much money you're rolling with,

1021
00:44:31,040 --> 00:44:34,200
Speaker 1: but that should hopefully put you at ease that even

1022
00:44:34,200 --> 00:44:37,200
Speaker 1: if you've got a decent chunk of money with a company,

1023
00:44:37,440 --> 00:44:41,480
Speaker 1: an individual brokerage firm like Fidelity vanguardis swap like that,

1024
00:44:41,520 --> 00:44:43,719
Speaker 1: you're well taken care of, even if you've got more

1025
00:44:43,760 --> 00:44:46,680
Speaker 1: than five hundred thousand dollars total. And so yeah, if

1026
00:44:46,680 --> 00:44:49,279
Speaker 1: you've got a spouse with those same accounts as well,

1027
00:44:49,320 --> 00:44:51,319
Speaker 1: like you can multiply that by too. So really there's

1028
00:44:51,600 --> 00:44:54,880
Speaker 1: a whole lot of coverage for people on the SIPC

1029
00:44:55,000 --> 00:44:55,680
Speaker 1: insurance front.

1030
00:44:55,920 --> 00:44:58,640
Speaker 2: Yeah, So, Danny, should you actually be worried about this?

1031
00:44:59,160 --> 00:45:01,399
Speaker 2: I certainly get it's on your radar with all that's

1032
00:45:01,400 --> 00:45:03,160
Speaker 2: been in the news lately, But I wouldn't be freaked

1033
00:45:03,160 --> 00:45:06,080
Speaker 2: out about the possibility that your brokerage firm is going

1034
00:45:06,120 --> 00:45:08,920
Speaker 2: to go bust. We actually have accounts with more than

1035
00:45:09,040 --> 00:45:11,520
Speaker 2: one of these different low cost companies, but it's not

1036
00:45:11,600 --> 00:45:13,920
Speaker 2: even because we're worried about that, you know, like one

1037
00:45:13,920 --> 00:45:17,120
Speaker 2: specific could fail where where you know our assets would

1038
00:45:17,120 --> 00:45:20,560
Speaker 2: be jeopardized. I've got iras with Vanguard, so I've got

1039
00:45:20,600 --> 00:45:22,839
Speaker 2: that money over there, and so does my wife. But

1040
00:45:22,920 --> 00:45:25,239
Speaker 2: then when we set up the solo for one K

1041
00:45:25,719 --> 00:45:28,080
Speaker 2: for Joe and I here with how to money, it

1042
00:45:28,120 --> 00:45:30,440
Speaker 2: was just easier to do with Fidelity, so we opted

1043
00:45:30,520 --> 00:45:32,160
Speaker 2: for that. And by the way, that also meant we

1044
00:45:32,160 --> 00:45:33,360
Speaker 2: get a little bit of a little bit of that

1045
00:45:33,360 --> 00:45:35,920
Speaker 2: brokerage diversity, So I guess it's kind of like an

1046
00:45:35,960 --> 00:45:39,200
Speaker 2: added bonus. But it wasn't an intentional move. But if

1047
00:45:39,239 --> 00:45:41,000
Speaker 2: you you know, if you're feeling a little nervous though,

1048
00:45:41,000 --> 00:45:43,680
Speaker 2: and you're bumping up against some of those insurance limits,

1049
00:45:43,680 --> 00:45:46,640
Speaker 2: some of those upper CIPIC limits, you know, why not

1050
00:45:46,680 --> 00:45:49,680
Speaker 2: open another account at one of the other discount brokerages

1051
00:45:49,719 --> 00:45:53,400
Speaker 2: in order to ensure that you stay within the safety zone.

1052
00:45:53,520 --> 00:45:55,320
Speaker 2: If it helps you to sleep better at night, certainly

1053
00:45:55,320 --> 00:45:57,200
Speaker 2: go for it. In particular, I feel like a lot

1054
00:45:57,239 --> 00:45:59,799
Speaker 2: of folks have been with Vanguard for years and years.

1055
00:46:00,160 --> 00:46:01,840
Speaker 2: They seem like they were able to get out of

1056
00:46:01,840 --> 00:46:04,520
Speaker 2: the gates a little bit earlier, right, a little bit faster,

1057
00:46:04,600 --> 00:46:06,719
Speaker 2: a little bit sooner. But that means that you don't

1058
00:46:06,719 --> 00:46:10,080
Speaker 2: have access to those zero fee funds that Fidelity offers,

1059
00:46:10,080 --> 00:46:11,920
Speaker 2: and so I think it's maybe a great time to

1060
00:46:11,920 --> 00:46:13,440
Speaker 2: hop over there and take advantage of some of their

1061
00:46:13,440 --> 00:46:14,120
Speaker 2: offerings as well.

1062
00:46:14,200 --> 00:46:15,719
Speaker 1: I mean, they're two of the best. There's a reason

1063
00:46:15,760 --> 00:46:17,839
Speaker 1: we talked about Fatelli in reguards. Both of them are

1064
00:46:17,840 --> 00:46:21,160
Speaker 1: also more than any other ones really. Yeah, and and

1065
00:46:21,200 --> 00:46:23,839
Speaker 1: Schwab too, that's a that's a great like third horse

1066
00:46:23,880 --> 00:46:25,719
Speaker 1: in the race, right, they amount want to consider, but

1067
00:46:25,920 --> 00:46:29,120
Speaker 1: they all prioritize low fees to a massive extent. But

1068
00:46:29,200 --> 00:46:31,680
Speaker 1: I really don't think this is something that you should

1069
00:46:31,760 --> 00:46:33,480
Speaker 1: you should be worried about, and especially hopefully, as we

1070
00:46:33,520 --> 00:46:35,719
Speaker 1: explained it, hopefully it's just like calms any sort of

1071
00:46:35,719 --> 00:46:37,440
Speaker 1: fears that anybody has out there when it comes to

1072
00:46:37,520 --> 00:46:41,080
Speaker 1: the security of their retirement account, the security of their

1073
00:46:41,080 --> 00:46:45,759
Speaker 1: assets if they're held in a CIPIC insured brokerage. So yeah,

1074
00:46:45,800 --> 00:46:47,360
Speaker 1: make sure you check that. You don't want to be

1075
00:46:47,440 --> 00:46:49,839
Speaker 1: doing business with some fly by night company or anything

1076
00:46:49,880 --> 00:46:51,560
Speaker 1: like that, right, but if you're with one of these

1077
00:46:51,640 --> 00:46:54,239
Speaker 1: insured brokerages, you should have full confidence, right that those

1078
00:46:54,280 --> 00:46:55,160
Speaker 1: assets are protected.

1079
00:46:55,280 --> 00:46:57,600
Speaker 2: Yeah, and we're also in favor of you investing in

1080
00:46:57,640 --> 00:46:59,960
Speaker 2: liquid gold, like you mentioned there at the beginning, that

1081
00:47:00,040 --> 00:47:03,880
Speaker 2: Belvida cheese, right, Oh, no, craft beer? So, oh no,

1082
00:47:04,960 --> 00:47:07,880
Speaker 2: weren't those the commercials they call it liquid gold? Just disgusting,

1083
00:47:07,960 --> 00:47:09,799
Speaker 2: not to be confused with Velveta cheese.

1084
00:47:09,840 --> 00:47:11,439
Speaker 1: I know you should always have a stash of craft

1085
00:47:11,480 --> 00:47:13,160
Speaker 1: beer on hand, which is actually where I got the

1086
00:47:13,200 --> 00:47:15,239
Speaker 1: beer that we drank on today's episode, that's right, which

1087
00:47:15,360 --> 00:47:16,839
Speaker 1: is a little stashed.

1088
00:47:16,520 --> 00:47:17,080
Speaker 3: In the closet.

1089
00:47:17,360 --> 00:47:17,560
Speaker 4: Yeah.

1090
00:47:17,640 --> 00:47:21,920
Speaker 2: Yeah, this was Supplication, a beer by Russian River. This

1091
00:47:21,960 --> 00:47:25,319
Speaker 2: is a sour ale that was barrel aged from nine

1092
00:47:25,360 --> 00:47:28,280
Speaker 2: to fifteen months, and it was aged for even longer

1093
00:47:28,320 --> 00:47:30,160
Speaker 2: than that. They're on your shelf, jewels, your thoughts.

1094
00:47:30,360 --> 00:47:32,560
Speaker 1: It's over sitting over five years in that bottle while

1095
00:47:32,560 --> 00:47:33,960
Speaker 1: it just kind of held onto it, seeing how it's

1096
00:47:33,960 --> 00:47:36,440
Speaker 1: going to evolve. Glad we got to tap it today

1097
00:47:36,440 --> 00:47:38,359
Speaker 1: for the show, and you know there's some sweetness from

1098
00:47:38,360 --> 00:47:41,160
Speaker 1: the cherry, some oak from the wine barrels. It's just

1099
00:47:41,440 --> 00:47:43,640
Speaker 1: as complex and beautiful in so many ways.

1100
00:47:43,800 --> 00:47:45,719
Speaker 2: Well, I wanted to interrupt it by stop myself there

1101
00:47:45,760 --> 00:47:47,680
Speaker 2: quickly because you said sweetness from the cherries. I feel

1102
00:47:47,719 --> 00:47:50,360
Speaker 2: like I got very little cherry flavor going on. I

1103
00:47:50,360 --> 00:47:52,759
Speaker 2: felt like this was actually a pretty dry sour and

1104
00:47:52,880 --> 00:47:55,120
Speaker 2: because I don't know in my mind, I'm thinking, all right,

1105
00:47:55,160 --> 00:47:59,680
Speaker 2: this continues to bottle condition, and if there are still yeasts,

1106
00:48:00,120 --> 00:48:02,800
Speaker 2: they're in the bottle sort of gobbling up those sugars

1107
00:48:02,800 --> 00:48:06,879
Speaker 2: and you know, pooping out alcohol. Well that's sometimes when

1108
00:48:06,920 --> 00:48:09,520
Speaker 2: that leaves is a dryer beer at the you know,

1109
00:48:09,520 --> 00:48:10,920
Speaker 2: at the end of the day, as opposed to like

1110
00:48:10,960 --> 00:48:14,759
Speaker 2: a sweeter, juicier version of this, which is kind of

1111
00:48:14,800 --> 00:48:16,520
Speaker 2: impossible to compare, right, unless you.

1112
00:48:16,480 --> 00:48:18,520
Speaker 1: Would be interested to try this from one that just

1113
00:48:18,520 --> 00:48:20,800
Speaker 1: got bottled like two weeks ago, yeah, or.

1114
00:48:20,800 --> 00:48:23,839
Speaker 2: If you could mentally remember what if say you got

1115
00:48:23,840 --> 00:48:25,480
Speaker 2: two bottles of this and you had one back in

1116
00:48:25,520 --> 00:48:28,920
Speaker 2: twenty eighteen, created a scale and wrote down exactly what

1117
00:48:28,960 --> 00:48:30,360
Speaker 2: you thought of This was like something you would do.

1118
00:48:30,760 --> 00:48:32,920
Speaker 2: I would love to do more of that kind of stuff.

1119
00:48:33,040 --> 00:48:35,320
Speaker 2: I like taking the scientific approach to my beer drinking.

1120
00:48:35,520 --> 00:48:37,040
Speaker 2: I like to remove all the fun from it, Jel,

1121
00:48:38,680 --> 00:48:40,480
Speaker 2: but no, it is really interesting to see how different

1122
00:48:40,480 --> 00:48:43,920
Speaker 2: beers like this evolve they're in the bottle. Certainly very

1123
00:48:44,000 --> 00:48:46,080
Speaker 2: much enjoyed this one. Yeah, the oaky flavors that you

1124
00:48:46,120 --> 00:48:47,960
Speaker 2: got out of it was, I mean, second to none.

1125
00:48:47,960 --> 00:48:49,680
Speaker 2: And that's one of the things that Russian River does

1126
00:48:49,760 --> 00:48:52,200
Speaker 2: so well. It's just the complexity that they're able to

1127
00:48:52,920 --> 00:48:56,319
Speaker 2: infuse into their beers. It makes this brewery, specifically Russian River,

1128
00:48:56,400 --> 00:48:58,520
Speaker 2: one of the ones I would love to visit in

1129
00:48:58,560 --> 00:49:01,000
Speaker 2: person in the hard white country. So if they're beers,

1130
00:49:01,000 --> 00:49:02,799
Speaker 2: it makes sense to stick them in wine barrels. And

1131
00:49:03,160 --> 00:49:06,719
Speaker 2: there's a reason they're ridiculously delicious and they have a

1132
00:49:06,760 --> 00:49:09,120
Speaker 2: storied reputation as one of the best brewers on the

1133
00:49:09,120 --> 00:49:09,600
Speaker 2: West Coast.

1134
00:49:09,640 --> 00:49:10,960
Speaker 3: Absolutely, all right, let's.

1135
00:49:10,760 --> 00:49:12,399
Speaker 1: Going to do it for this episode, Matt. And by

1136
00:49:12,400 --> 00:49:13,920
Speaker 1: the way, if any of you listeners out there, if

1137
00:49:13,960 --> 00:49:15,799
Speaker 1: you're like, I've got a money question for Matt and Joel,

1138
00:49:15,960 --> 00:49:17,799
Speaker 1: well we'd love to hear it. Don't forget to go

1139
00:49:17,880 --> 00:49:20,479
Speaker 1: to howdomoney dot com slash ask so you can follow

1140
00:49:20,480 --> 00:49:22,880
Speaker 1: those simple instructions to send us your question and hopefully

1141
00:49:22,880 --> 00:49:25,120
Speaker 1: we'll take it on the next ask htm episode.

1142
00:49:25,120 --> 00:49:26,960
Speaker 2: That's right, but buddy, that's going to be it until

1143
00:49:26,960 --> 00:49:29,680
Speaker 2: next time. Best Friends Out and best Friends Out