1 00:00:00,120 --> 00:00:02,560 Speaker 1: Welcome to How the Money. I'm Joe and I in 2 00:00:02,720 --> 00:00:24,720 Speaker 1: Matt today. We are answering your listener questions. That's right, Joel. 3 00:00:24,840 --> 00:00:27,320 Speaker 1: This is an ask How the Money episode where we're 4 00:00:27,320 --> 00:00:29,920 Speaker 1: gonna take a listener questions. We've got five great ones 5 00:00:29,960 --> 00:00:33,040 Speaker 1: to get to this episode, including we've got a listener 6 00:00:33,240 --> 00:00:36,360 Speaker 1: who basically wants our blessing when it comes to his 7 00:00:36,479 --> 00:00:38,720 Speaker 1: house hacking pursuits. We're gonna get to that one. We're 8 00:00:38,720 --> 00:00:41,320 Speaker 1: gonna talk about warehouse clubs, which ones makes sense for you. 9 00:00:41,720 --> 00:00:44,040 Speaker 1: And we've got a question too from a listener who 10 00:00:44,159 --> 00:00:47,120 Speaker 1: is wondering if he is investing too much of his money. 11 00:00:47,240 --> 00:00:50,159 Speaker 1: That's not a problem that many people encounter, but he 12 00:00:50,320 --> 00:00:54,040 Speaker 1: is trying to figure out the right balance of investing 13 00:00:54,080 --> 00:00:57,160 Speaker 1: for himself. I'm looking forward to maybe a more nuanced 14 00:00:57,160 --> 00:00:59,280 Speaker 1: conversation that you and I will have, which I feel 15 00:00:59,280 --> 00:01:01,320 Speaker 1: like we all which had to bring that to every episode, 16 00:01:01,320 --> 00:01:02,840 Speaker 1: to every question that we have, we try to bring 17 00:01:02,920 --> 00:01:07,319 Speaker 1: a nuanced answer. We're never like that's totally stupid. Uh. 18 00:01:07,319 --> 00:01:09,160 Speaker 1: It depends on a lot of things, right, A lot 19 00:01:09,200 --> 00:01:12,040 Speaker 1: of people in the personal finance space, are they assume 20 00:01:12,520 --> 00:01:14,120 Speaker 1: I heard a quote or there was a quote from 21 00:01:14,120 --> 00:01:16,160 Speaker 1: Morgan Household, who we've had on the show before, Matt 22 00:01:16,520 --> 00:01:18,800 Speaker 1: and he says that, you know, our genius thing did 23 00:01:18,800 --> 00:01:20,839 Speaker 1: he say exactly? He says a lot of genius things. 24 00:01:20,959 --> 00:01:23,480 Speaker 1: He says that, you know, our world view makes up 25 00:01:23,520 --> 00:01:27,080 Speaker 1: point zero zero zero zero three percent of you know what, 26 00:01:27,080 --> 00:01:29,920 Speaker 1: what's happening in the entire world. But we assume that everyone, 27 00:01:29,920 --> 00:01:31,760 Speaker 1: you know, eight percent of people have a similar experience 28 00:01:31,760 --> 00:01:33,800 Speaker 1: to us, and it's just not true, right Like, so 29 00:01:34,280 --> 00:01:36,960 Speaker 1: our our world view colors a lot um. But we 30 00:01:36,959 --> 00:01:38,720 Speaker 1: we try to take a step back and assume that 31 00:01:38,959 --> 00:01:41,119 Speaker 1: everyone comes from a different place, from you know, different 32 00:01:41,200 --> 00:01:45,080 Speaker 1: educational background, from different money habits growing up, And so 33 00:01:45,480 --> 00:01:48,160 Speaker 1: we want to give the broadest application of the stuff 34 00:01:48,200 --> 00:01:50,600 Speaker 1: we're talking about to as many people as possible, and 35 00:01:50,680 --> 00:01:53,360 Speaker 1: it's going to differ from situations situations. But what if 36 00:01:53,360 --> 00:01:55,600 Speaker 1: we're talking to somebody who sounds like us and it 37 00:01:55,680 --> 00:01:58,000 Speaker 1: sounds like, oh yeah, I could see myself in that situation. 38 00:01:58,000 --> 00:01:59,720 Speaker 1: If they also say the word dude quite a bit, 39 00:02:01,000 --> 00:02:03,120 Speaker 1: then maybe it's it's not like point zero zero zero two, 40 00:02:03,200 --> 00:02:05,960 Speaker 1: It's like, maybe it's point zero two they live in Atlanta. 41 00:02:06,000 --> 00:02:07,920 Speaker 1: It's like, all we got some more similarities even more 42 00:02:07,920 --> 00:02:10,520 Speaker 1: overlap absolutely All right, well, dude, before we get to 43 00:02:10,560 --> 00:02:14,080 Speaker 1: the speaking of a dude, I so over the summer, 44 00:02:14,600 --> 00:02:17,640 Speaker 1: I got a parking ticket. A long story short, I 45 00:02:17,639 --> 00:02:19,440 Speaker 1: was in a hurry to get to an Atlanta United match, 46 00:02:19,480 --> 00:02:22,520 Speaker 1: decided to go last minute, saw an open parallel spot 47 00:02:22,520 --> 00:02:24,400 Speaker 1: on the side of the road. I never parked there before, 48 00:02:24,440 --> 00:02:25,720 Speaker 1: but I was like, I'm gonna go for it. I'm 49 00:02:25,720 --> 00:02:28,359 Speaker 1: gonna park there, park there. After the match came out, 50 00:02:28,360 --> 00:02:31,280 Speaker 1: there was a ticket on my wind shield, and I 51 00:02:31,360 --> 00:02:33,400 Speaker 1: was so pissed because I had looked around and there 52 00:02:33,440 --> 00:02:37,040 Speaker 1: were no no parking signs that I could see. But 53 00:02:37,120 --> 00:02:39,760 Speaker 1: when I came back, I was I was pretty furious. 54 00:02:39,919 --> 00:02:41,880 Speaker 1: I was gonna say they put up a no parking sign. 55 00:02:42,720 --> 00:02:45,400 Speaker 1: I mean, I would have half expected that, but I 56 00:02:45,440 --> 00:02:48,600 Speaker 1: looked way down the road. I'm I'm talking like from 57 00:02:48,639 --> 00:02:50,360 Speaker 1: where I was parked, there was a no parking sign. 58 00:02:50,760 --> 00:02:53,079 Speaker 1: And it's not like there was an arrow, because oftentimes 59 00:02:53,120 --> 00:02:54,840 Speaker 1: when they've got the arrow, they let you know, okay, 60 00:02:54,840 --> 00:02:56,800 Speaker 1: on this side of the sign the curb painted. You 61 00:02:56,800 --> 00:02:59,240 Speaker 1: could know the curb was not painted. Uh. And so 62 00:02:59,480 --> 00:03:02,600 Speaker 1: because I thought I had a good case, I had 63 00:03:02,639 --> 00:03:04,080 Speaker 1: a good argument, And so I took a bunch of 64 00:03:04,120 --> 00:03:06,880 Speaker 1: pictures because I had heard that you can contest these 65 00:03:06,880 --> 00:03:09,360 Speaker 1: tickets at least here in Atlanta. Uh So I snapped 66 00:03:09,360 --> 00:03:11,520 Speaker 1: a bunch of pictures. I showed where my car was 67 00:03:11,800 --> 00:03:14,000 Speaker 1: and how far that sign was, and you can even 68 00:03:14,040 --> 00:03:15,600 Speaker 1: see the front of it because it was the it 69 00:03:15,639 --> 00:03:18,280 Speaker 1: was turned, but it was way way way back behind me. 70 00:03:18,680 --> 00:03:21,560 Speaker 1: All that being said, I've received a notice and they're like, sorry, 71 00:03:21,760 --> 00:03:25,200 Speaker 1: based on your evidence, we cannot drop this ticket. Please 72 00:03:25,200 --> 00:03:28,040 Speaker 1: pay y five dollars. And it's not a big deal, right, 73 00:03:28,080 --> 00:03:29,680 Speaker 1: twenty five bucks. I thought you're gonna take this all 74 00:03:29,680 --> 00:03:31,760 Speaker 1: the way to the Supreme Court, Matt. That would be 75 00:03:32,200 --> 00:03:34,440 Speaker 1: a cheap move because it would not be worth my time. 76 00:03:34,560 --> 00:03:36,320 Speaker 1: Twenty five bucks. It's not a huge If it was 77 00:03:36,320 --> 00:03:40,160 Speaker 1: two fifty dollars would definitely be there. But for twenty 78 00:03:40,200 --> 00:03:42,120 Speaker 1: five bucks whatever, I'm just gonna pay it. But I 79 00:03:42,400 --> 00:03:44,920 Speaker 1: just wanted to mention that because if you find yourself 80 00:03:44,920 --> 00:03:47,680 Speaker 1: in a situation like that, especially in a circumstance where 81 00:03:47,720 --> 00:03:49,520 Speaker 1: you might be able to overturn that ticket or have 82 00:03:49,600 --> 00:03:53,200 Speaker 1: that ticket dropped before you move your car, snap some pictures. Right, 83 00:03:53,280 --> 00:03:55,080 Speaker 1: we've got these phones in our pockets, and I think 84 00:03:55,080 --> 00:03:58,320 Speaker 1: that's a good way to documents that we were perhaps 85 00:03:58,720 --> 00:04:01,240 Speaker 1: in the right. Again, in this case, I was not 86 00:04:01,320 --> 00:04:03,600 Speaker 1: in the right. I was parked illegally. So it turns 87 00:04:03,640 --> 00:04:07,000 Speaker 1: out I was actually parked at the beginning of a bridge. Uh, 88 00:04:07,200 --> 00:04:09,280 Speaker 1: not like a bridge, like like you're thinking of like 89 00:04:09,280 --> 00:04:12,080 Speaker 1: a bridge over It's like a little overpass. Yeah, like 90 00:04:12,080 --> 00:04:14,160 Speaker 1: it's it goes over train tracks. Actually yeah, and you 91 00:04:14,280 --> 00:04:16,640 Speaker 1: I mean, it's it's so dumb. But technically I was 92 00:04:16,800 --> 00:04:18,520 Speaker 1: on the part of the road where it started to 93 00:04:18,560 --> 00:04:20,320 Speaker 1: turn into a bridge, even though it just looked like 94 00:04:20,360 --> 00:04:23,359 Speaker 1: a normal sidewalk. There's literally storefronts to your you know, 95 00:04:23,440 --> 00:04:24,920 Speaker 1: to your side. Okay, here's what I'm gonna do. I'm 96 00:04:24,920 --> 00:04:26,520 Speaker 1: gonna start to go fund me for you so we 97 00:04:26,560 --> 00:04:30,040 Speaker 1: can have nice TM listeners help crowdsource the payment of 98 00:04:30,080 --> 00:04:33,400 Speaker 1: this ticket. It's totally fine, I've already paid it. But honestly, 99 00:04:33,600 --> 00:04:35,240 Speaker 1: this kind of makes me think of the conversation you 100 00:04:35,279 --> 00:04:37,800 Speaker 1: and I were having recently about risking it right. When 101 00:04:37,839 --> 00:04:40,120 Speaker 1: it comes to parking, A lot of times either fall 102 00:04:40,279 --> 00:04:43,479 Speaker 1: maybe on one end of the spectrum or the other. 103 00:04:43,520 --> 00:04:47,360 Speaker 1: You're either a very rule following, law abiding citizen or 104 00:04:47,600 --> 00:04:50,760 Speaker 1: you can be more like you, which but you park 105 00:04:50,839 --> 00:04:53,159 Speaker 1: places illegally all the time. I don't know if I 106 00:04:53,160 --> 00:04:55,600 Speaker 1: would say all the time my mom listens to the show, 107 00:04:55,640 --> 00:04:58,440 Speaker 1: please comments down over there seeing you do it. But 108 00:04:58,520 --> 00:05:00,920 Speaker 1: I recently did go to meet a friend for beers 109 00:05:01,120 --> 00:05:04,279 Speaker 1: downtown by the airport, and I bet about this hotel. 110 00:05:04,320 --> 00:05:06,400 Speaker 1: There's no other place to park except for in the 111 00:05:06,400 --> 00:05:08,800 Speaker 1: parking deck of this hotel. And it was eighteen dollars 112 00:05:08,839 --> 00:05:12,040 Speaker 1: an hour for one hour to park to park there, 113 00:05:12,080 --> 00:05:13,600 Speaker 1: and I was like, the beer is gonna cost six 114 00:05:13,720 --> 00:05:16,120 Speaker 1: and like this parking is I couldn't do it, And 115 00:05:16,160 --> 00:05:19,080 Speaker 1: so there were some empty spaces. It was a rainy night. 116 00:05:19,320 --> 00:05:21,159 Speaker 1: There were some empty spaces. I guess where the valet 117 00:05:21,240 --> 00:05:23,480 Speaker 1: do the valet parking, but there was no valet in sight. 118 00:05:23,600 --> 00:05:25,280 Speaker 1: And so I was like, you know what, I'm only 119 00:05:25,320 --> 00:05:26,760 Speaker 1: gonna be here for an hour and a half having 120 00:05:26,760 --> 00:05:29,440 Speaker 1: to be with my friend. I'm gonna chance it. And yes, 121 00:05:29,560 --> 00:05:31,800 Speaker 1: I did it. I broke the rules, but I ended 122 00:05:31,880 --> 00:05:36,400 Speaker 1: up not having to pay that eighteen whereas I didn't. 123 00:05:36,640 --> 00:05:38,320 Speaker 1: I mean, I think this is a good conversation to 124 00:05:38,360 --> 00:05:41,200 Speaker 1: have because what we're talking about here is risk and 125 00:05:41,279 --> 00:05:43,760 Speaker 1: in our lives every single day we assume certain risks, 126 00:05:43,800 --> 00:05:46,440 Speaker 1: whether or not they are perceived risks or whether they're 127 00:05:46,480 --> 00:05:48,600 Speaker 1: just fears or a head And I think it's important 128 00:05:48,600 --> 00:05:51,240 Speaker 1: for us just to kind of weigh the consequences that 129 00:05:51,279 --> 00:05:54,440 Speaker 1: we might receive from that action and then from there 130 00:05:54,440 --> 00:05:56,640 Speaker 1: and make the best decision. Right. So, for me, if 131 00:05:56,680 --> 00:05:59,279 Speaker 1: this was a lot that said towing and forced you 132 00:05:59,320 --> 00:06:01,760 Speaker 1: will be to, it's whatever, you know, giant toe a lot, 133 00:06:01,839 --> 00:06:04,080 Speaker 1: But that's a much bigger hassle, that is a much 134 00:06:04,120 --> 00:06:06,240 Speaker 1: bigger expense, and I would if I saw that, I 135 00:06:06,240 --> 00:06:08,520 Speaker 1: would have been like, Okay, it's not marked very clearly, 136 00:06:09,040 --> 00:06:10,719 Speaker 1: but I see that toe sign. I am not willing 137 00:06:10,760 --> 00:06:14,400 Speaker 1: to take that risk. But knowing that park Atlanta, sometimes 138 00:06:14,480 --> 00:06:16,880 Speaker 1: it's out and they write these little dumb tickets, And 139 00:06:16,920 --> 00:06:19,280 Speaker 1: again normally I would ride have ridden my bike to 140 00:06:19,400 --> 00:06:21,440 Speaker 1: that liney knited match. The fact that I had driven, 141 00:06:21,480 --> 00:06:24,000 Speaker 1: I was like, well, to even pay to park at 142 00:06:24,000 --> 00:06:26,320 Speaker 1: a nearby a lot sometimes cost fifteen or twenty bucks, 143 00:06:26,360 --> 00:06:27,760 Speaker 1: and so in my mind I was I thought, you 144 00:06:27,760 --> 00:06:29,240 Speaker 1: know what, this is a great little spot right here. 145 00:06:29,240 --> 00:06:31,520 Speaker 1: We can just hop over. Uh, And in this case, 146 00:06:31,560 --> 00:06:33,360 Speaker 1: it costs us a little bit more than it would 147 00:06:33,400 --> 00:06:35,520 Speaker 1: have otherwise, But it was a risk I was willing 148 00:06:35,560 --> 00:06:37,040 Speaker 1: to take. There you go, especially if you're going in 149 00:06:37,080 --> 00:06:39,400 Speaker 1: for just a quick pit stop. Sometimes that's a risk 150 00:06:39,400 --> 00:06:42,280 Speaker 1: I'm willing to take. Sure, But I'm not nearly as 151 00:06:42,360 --> 00:06:45,560 Speaker 1: much of a delinquent as you made me sound. I 152 00:06:45,720 --> 00:06:47,360 Speaker 1: want people to know that. But all right, let's keep 153 00:06:47,360 --> 00:06:50,599 Speaker 1: moving on for the record, um clearing my name, But 154 00:06:50,680 --> 00:06:52,440 Speaker 1: let's mention the beer that we're having real quick, Matt. 155 00:06:52,480 --> 00:06:56,640 Speaker 1: Today we're drinking Southern Crisp from Southern Grist Brewing and 156 00:06:56,680 --> 00:06:59,440 Speaker 1: it's this is a pilsner. This is a great brewery 157 00:06:59,480 --> 00:07:01,560 Speaker 1: out of Nat. Phil And we've had a couple of 158 00:07:01,600 --> 00:07:03,279 Speaker 1: their beers on the show before, but it's time to 159 00:07:03,279 --> 00:07:05,400 Speaker 1: have another one. So we'll give our thoughts on this 160 00:07:05,440 --> 00:07:06,920 Speaker 1: one at the end of the episode. And we will. 161 00:07:06,960 --> 00:07:09,520 Speaker 1: But let's get on the listener questions Matt's and uh yeah, 162 00:07:09,640 --> 00:07:12,040 Speaker 1: for folks out there who want to submit a question 163 00:07:12,520 --> 00:07:14,720 Speaker 1: for a future ask htm episode, just got to how 164 00:07:14,720 --> 00:07:17,800 Speaker 1: to money dot com slash ask their simple instructions there. 165 00:07:17,840 --> 00:07:21,400 Speaker 1: It'll take you just like thirty seconds to record your questions. 166 00:07:21,400 --> 00:07:23,120 Speaker 1: Send it over and Matt and I we'd love to 167 00:07:23,120 --> 00:07:25,800 Speaker 1: answer it on an upcoming episode, but this first one 168 00:07:26,000 --> 00:07:29,120 Speaker 1: is that question that Matt mentioned about investing in saving 169 00:07:29,160 --> 00:07:32,480 Speaker 1: too much of your money. Hey, Joel and Matt, It's 170 00:07:32,560 --> 00:07:34,960 Speaker 1: Jason and Rochester, New York. I've got a question about 171 00:07:35,000 --> 00:07:40,280 Speaker 1: my retirement savings. Whenever I ask somebody like a financial advisor, 172 00:07:40,920 --> 00:07:44,760 Speaker 1: I never seemed to get a clear answer. It's always 173 00:07:45,560 --> 00:07:50,360 Speaker 1: subjective in some way, interested in seeing what your perspective is. 174 00:07:51,280 --> 00:07:53,840 Speaker 1: I know that on your show a few times you've 175 00:07:53,880 --> 00:07:56,920 Speaker 1: mentioned that having you know, a million, million and a 176 00:07:56,960 --> 00:08:00,000 Speaker 1: half something like that when you retire is good enough 177 00:08:00,040 --> 00:08:04,440 Speaker 1: for most people. I'm currently thirty seven years old. I 178 00:08:04,560 --> 00:08:07,400 Speaker 1: make about, you know, a hundred and ten thousand dollars 179 00:08:07,360 --> 00:08:11,120 Speaker 1: a year. I'm currently debt free other than my house. 180 00:08:12,040 --> 00:08:14,720 Speaker 1: My four one ks right at about two hundred and 181 00:08:14,800 --> 00:08:18,679 Speaker 1: forty five thousand right now, and I'm putting in about 182 00:08:18,840 --> 00:08:24,600 Speaker 1: nine with a five percent match from my employer. If 183 00:08:24,640 --> 00:08:27,200 Speaker 1: I look at the projections, it tells me that I'm 184 00:08:27,200 --> 00:08:29,480 Speaker 1: going to be somewhere in the range of two and 185 00:08:29,480 --> 00:08:36,079 Speaker 1: a half two three million dollars when I'm ready to retire. However, 186 00:08:36,720 --> 00:08:40,600 Speaker 1: I've never maxed out my four one K contribution and 187 00:08:40,640 --> 00:08:43,200 Speaker 1: all I hear is you must do that if you can. 188 00:08:44,120 --> 00:08:48,600 Speaker 1: So what's the balance between lifestyle and making sure that 189 00:08:48,679 --> 00:08:52,760 Speaker 1: you're aggressively saving so you have enough? All right, Jason, 190 00:08:52,800 --> 00:08:55,080 Speaker 1: thanks for that question. And you know you talking about 191 00:08:55,720 --> 00:08:59,319 Speaker 1: speaking with different financial advisers makes Joe and I both 192 00:08:59,440 --> 00:09:02,200 Speaker 1: think of this this classic quote from up in Sinclair, 193 00:09:02,320 --> 00:09:04,079 Speaker 1: which is it is difficult to get a man to 194 00:09:04,160 --> 00:09:08,920 Speaker 1: understand something when his salary depends on his not understanding it. 195 00:09:09,440 --> 00:09:12,920 Speaker 1: If you explains a whole lot about this world. Yeah, 196 00:09:12,960 --> 00:09:14,920 Speaker 1: when you're when you're speaking to a financial advisor, even 197 00:09:14,920 --> 00:09:16,960 Speaker 1: once who are really good at their job, it's just 198 00:09:17,000 --> 00:09:19,160 Speaker 1: going to be close to impossible to get an answer 199 00:09:19,240 --> 00:09:22,760 Speaker 1: that doesn't involve invest more money, do the responsible thing, 200 00:09:22,800 --> 00:09:24,280 Speaker 1: do the thing that we're going to tell you to do, 201 00:09:24,480 --> 00:09:26,680 Speaker 1: especially if they're charging a fee for assets under management 202 00:09:26,679 --> 00:09:30,120 Speaker 1: there like of course investing exactly. Yeah, I mean, of 203 00:09:30,120 --> 00:09:32,920 Speaker 1: course generally speaking, like investing more like that is a 204 00:09:32,960 --> 00:09:35,680 Speaker 1: really smart move, uh, And it's often in the best 205 00:09:35,720 --> 00:09:38,280 Speaker 1: interests of not only yourself but also the financial advisor 206 00:09:38,320 --> 00:09:40,920 Speaker 1: as well. But there's just more to consider than just 207 00:09:41,080 --> 00:09:44,120 Speaker 1: investing as much as humanly possible. Right, do we want 208 00:09:44,120 --> 00:09:46,960 Speaker 1: to acquire Warren Buffett levels of wealth, Like is that 209 00:09:47,040 --> 00:09:49,319 Speaker 1: our goal? And to still go to McDonald's for the 210 00:09:49,360 --> 00:09:52,000 Speaker 1: biscuit every morning and he gets or whatever, like maybe 211 00:09:52,000 --> 00:09:55,000 Speaker 1: that is your goal and that's okay, I guess, but 212 00:09:55,040 --> 00:09:56,839 Speaker 1: that's that's not our goal, Matt, Like, we don't. We 213 00:09:56,880 --> 00:09:58,679 Speaker 1: don't want that kind of money with that sort of 214 00:09:58,679 --> 00:10:01,760 Speaker 1: like austere like style that warm Buffett lives. Although going 215 00:10:01,760 --> 00:10:03,920 Speaker 1: out to eat for breakfast every morning sounds kind of face. 216 00:10:04,000 --> 00:10:06,840 Speaker 1: It sounds just the fact that it's at McDonald's, which 217 00:10:06,960 --> 00:10:10,440 Speaker 1: also like who is this guy's doctor, Like, like I 218 00:10:10,440 --> 00:10:12,880 Speaker 1: want to know the cardiologists? That's like, yeah, man, keep 219 00:10:12,880 --> 00:10:14,240 Speaker 1: it up, like you seem to be doing all right. 220 00:10:14,880 --> 00:10:17,880 Speaker 1: Hey he made it so yeah, I guess that whatever 221 00:10:17,920 --> 00:10:19,760 Speaker 1: he's doing is working. Can't knock it right. But yeah, 222 00:10:19,760 --> 00:10:22,200 Speaker 1: The actual amount of money Jason, that you're gonna want 223 00:10:22,960 --> 00:10:24,719 Speaker 1: to have saved up when it comes to retirement time 224 00:10:24,800 --> 00:10:28,120 Speaker 1: depends on so many different factors. You mentioned a million 225 00:10:28,240 --> 00:10:30,360 Speaker 1: or a million a half. Well, for some people a 226 00:10:30,400 --> 00:10:33,200 Speaker 1: million bucks in retirement sounds like an impossible task, like 227 00:10:33,240 --> 00:10:35,079 Speaker 1: I'll never be able to hit that. That's too big 228 00:10:35,120 --> 00:10:37,760 Speaker 1: of a goal. And then for other people, that wouldn't 229 00:10:37,760 --> 00:10:40,640 Speaker 1: be nearly enough to afford the lifestyle that they want 230 00:10:40,679 --> 00:10:43,600 Speaker 1: to live when it comes to retirement, especially if they're 231 00:10:43,600 --> 00:10:45,360 Speaker 1: one of those people that wants to retire early, like 232 00:10:45,400 --> 00:10:48,000 Speaker 1: in their forties, right, they're gonna need in all likelihood 233 00:10:48,040 --> 00:10:49,960 Speaker 1: more money than that in order to be able to 234 00:10:50,000 --> 00:10:52,160 Speaker 1: make that possible. So it really is just hard to 235 00:10:52,200 --> 00:10:55,080 Speaker 1: come up with a lump sum rule of thumb for 236 00:10:55,160 --> 00:10:58,640 Speaker 1: those non working decades. There's just too many individually specific 237 00:10:58,679 --> 00:11:01,720 Speaker 1: factors that we can't all take into account um, and 238 00:11:02,160 --> 00:11:04,439 Speaker 1: you have to actually really do it on an individual basis. 239 00:11:04,679 --> 00:11:07,200 Speaker 1: But I would say anyone telling you that you must 240 00:11:07,360 --> 00:11:09,199 Speaker 1: max out your four o one K or that you're 241 00:11:09,200 --> 00:11:11,080 Speaker 1: not doing your right if you're not doing that, they're 242 00:11:11,080 --> 00:11:13,960 Speaker 1: putting too much emphasis on the future and not enough 243 00:11:14,000 --> 00:11:16,360 Speaker 1: on the here and now. Maybe that's a good thing 244 00:11:16,400 --> 00:11:18,560 Speaker 1: for you, but it sounds like it also might not 245 00:11:18,640 --> 00:11:21,160 Speaker 1: be the best thing for you. Yeah, for some folks, 246 00:11:21,440 --> 00:11:24,680 Speaker 1: maxing out retirement accounts like that actually is the best move. Like, 247 00:11:24,720 --> 00:11:28,600 Speaker 1: we've got no problem with max savers funneling as much 248 00:11:28,640 --> 00:11:32,040 Speaker 1: of their income as they can towards tax advantaged accounts, 249 00:11:32,080 --> 00:11:34,560 Speaker 1: But it is possible for some in that crowd, and 250 00:11:34,600 --> 00:11:38,839 Speaker 1: specifically we're thinking about the financial independence retire early folks. Uh. 251 00:11:38,840 --> 00:11:41,560 Speaker 1: And oftentimes they can go too far. They've just focused 252 00:11:41,640 --> 00:11:44,679 Speaker 1: so much on building up a massive stockpile uh and 253 00:11:44,760 --> 00:11:47,720 Speaker 1: those retirement accounts that they just neglect some of the 254 00:11:47,760 --> 00:11:51,040 Speaker 1: important things that money can be used for now. They're 255 00:11:51,040 --> 00:11:53,560 Speaker 1: too focused on the later and not focused enough on 256 00:11:53,600 --> 00:11:56,240 Speaker 1: the now. Uh. They might continue working, saying, a job 257 00:11:56,280 --> 00:11:58,800 Speaker 1: that they don't like for years longer than they should. 258 00:11:58,840 --> 00:12:01,280 Speaker 1: Or maybe they might if used to spend money that 259 00:12:01,280 --> 00:12:05,360 Speaker 1: would just boost their own happiness of themselves and of 260 00:12:05,400 --> 00:12:07,840 Speaker 1: their family. And so for those folks, I think over 261 00:12:07,920 --> 00:12:12,040 Speaker 1: saving is actually a real problem for some individuals. Building 262 00:12:12,080 --> 00:12:14,959 Speaker 1: wealth it's important and it's totally smart, but maximizing those 263 00:12:15,000 --> 00:12:19,079 Speaker 1: investments far beyond your needs doesn't win you extra bonus points. 264 00:12:19,080 --> 00:12:21,520 Speaker 1: At that point, you're just building wealth for wealth sake. 265 00:12:21,559 --> 00:12:23,640 Speaker 1: You're not really thinking about what you want life to 266 00:12:23,640 --> 00:12:25,800 Speaker 1: look like. Yeah, there's a book Matt called Die with Zero, 267 00:12:25,920 --> 00:12:28,440 Speaker 1: and his whole goal is to get people to not 268 00:12:28,559 --> 00:12:31,960 Speaker 1: think about like leaving millions behind your kids, Like is that? 269 00:12:32,080 --> 00:12:34,000 Speaker 1: Is that really the point of what you're trying to 270 00:12:34,040 --> 00:12:36,240 Speaker 1: do with your life is to um and and and 271 00:12:36,280 --> 00:12:39,079 Speaker 1: it's an interesting concept, the concept of dying with zero 272 00:12:39,160 --> 00:12:42,000 Speaker 1: as opposed to dying with millions of dollars in the bank. Um, 273 00:12:42,000 --> 00:12:45,000 Speaker 1: it's worth thinking about. But let's talk about Jason's position 274 00:12:45,280 --> 00:12:47,840 Speaker 1: in particular. Jason, you're in a great position. You know, 275 00:12:47,840 --> 00:12:50,320 Speaker 1: most listeners probably heard what you said in your question, 276 00:12:50,640 --> 00:12:53,040 Speaker 1: and they were a bit envious of your primarcial position, 277 00:12:53,160 --> 00:12:56,600 Speaker 1: right being debt free, Matt, that's with only a mortgage. 278 00:12:56,800 --> 00:12:58,800 Speaker 1: That's a great place to be in a lot of 279 00:12:58,840 --> 00:13:01,120 Speaker 1: our listeners are dealing with the other sorts of debt, 280 00:13:01,280 --> 00:13:05,160 Speaker 1: some pesky credit card debt. That's having student loans for sure. Um. 281 00:13:05,200 --> 00:13:07,560 Speaker 1: And Jason's already built up an excellent sum of money 282 00:13:07,600 --> 00:13:09,480 Speaker 1: for the future, that's going to continue to work on 283 00:13:09,520 --> 00:13:11,520 Speaker 1: his behalf without him having to do much, without him 284 00:13:11,559 --> 00:13:14,240 Speaker 1: having to even really pay attention to it. And the 285 00:13:14,280 --> 00:13:16,800 Speaker 1: cool thing is, Jason, that you're still putting four percent 286 00:13:16,880 --> 00:13:19,520 Speaker 1: of your salary in because of that generous match that 287 00:13:19,520 --> 00:13:21,959 Speaker 1: your employer offers. That's right in the range that we 288 00:13:22,040 --> 00:13:23,960 Speaker 1: love to see for folks. And since you're in money 289 00:13:24,000 --> 00:13:26,560 Speaker 1: your seven, there's just so much flexibility for you. Um. 290 00:13:26,600 --> 00:13:28,600 Speaker 1: You know, we we always say and Matt and I 291 00:13:28,640 --> 00:13:31,120 Speaker 1: think one of the key tenants of personal finances that 292 00:13:31,160 --> 00:13:35,319 Speaker 1: delayed gratification is of utmost importance. But you've got that down. 293 00:13:35,720 --> 00:13:38,840 Speaker 1: Your next task really is to push for balance in 294 00:13:38,880 --> 00:13:40,880 Speaker 1: your life. So we would just suggest that you get 295 00:13:40,880 --> 00:13:44,040 Speaker 1: intentional and find ways to incorporate a little more of 296 00:13:44,160 --> 00:13:47,280 Speaker 1: the money that you're making now into a fulfilling life 297 00:13:47,559 --> 00:13:50,560 Speaker 1: like in the here and now, not just prioritizing, not 298 00:13:50,679 --> 00:13:54,000 Speaker 1: over prioritizing your future self exactly. Yeah, and that's how 299 00:13:54,000 --> 00:13:56,400 Speaker 1: you strike that balance. So much of this question, uh 300 00:13:56,600 --> 00:13:59,679 Speaker 1: comes down to individual goals and Jason, what you want 301 00:13:59,679 --> 00:14:02,120 Speaker 1: your life to look like, and so some questions made 302 00:14:02,120 --> 00:14:03,960 Speaker 1: to ask yourself like do you like your work? Like 303 00:14:04,120 --> 00:14:06,800 Speaker 1: do you like the the actual job that you have currently? Uh? 304 00:14:06,800 --> 00:14:09,080 Speaker 1: In a perfect world, would you still be working in 305 00:14:09,120 --> 00:14:12,319 Speaker 1: that job or within that industry in twenty years Instead, 306 00:14:12,360 --> 00:14:14,680 Speaker 1: if you want to start your own business, or maybe 307 00:14:14,720 --> 00:14:17,040 Speaker 1: you have dreams of doing some some work that pays 308 00:14:17,160 --> 00:14:19,120 Speaker 1: maybe quite a bit less in the near future, then 309 00:14:19,160 --> 00:14:21,720 Speaker 1: you might want to ratch up your savings. But that 310 00:14:21,760 --> 00:14:23,800 Speaker 1: being said, if you aren't planning to make any big 311 00:14:23,880 --> 00:14:26,000 Speaker 1: changes in your life, it sounds like that you're doing 312 00:14:26,040 --> 00:14:28,560 Speaker 1: just fine. Either way, you're quite a ways down the 313 00:14:28,600 --> 00:14:31,760 Speaker 1: path towards financial independence. Uh, don't pay too much attention 314 00:14:31,800 --> 00:14:34,360 Speaker 1: to the folks who are just encouraging and goading you 315 00:14:34,400 --> 00:14:36,280 Speaker 1: on to invest more. You can do it if you want, 316 00:14:36,640 --> 00:14:39,480 Speaker 1: but there's no financial necessity for you to do so. Yeah, 317 00:14:39,480 --> 00:14:41,120 Speaker 1: and going back to one of the things that Jason 318 00:14:41,120 --> 00:14:43,440 Speaker 1: said earlier in this question too that we have to 319 00:14:43,480 --> 00:14:45,200 Speaker 1: respond to. I mean, it really is tough to know 320 00:14:45,240 --> 00:14:48,840 Speaker 1: an exact dollar amount to make sure that you're investing 321 00:14:48,920 --> 00:14:51,480 Speaker 1: that much for the future. But there is a good 322 00:14:51,520 --> 00:14:53,560 Speaker 1: rule of thumb, I think, and that is to have 323 00:14:53,600 --> 00:14:56,640 Speaker 1: twenty five times your annual expenses saved and invested for 324 00:14:56,680 --> 00:14:59,720 Speaker 1: the future. So, for instance, if you did have a 325 00:14:59,760 --> 00:15:02,880 Speaker 1: million dollar net worth, you know, in in investments, you 326 00:15:02,920 --> 00:15:06,880 Speaker 1: could withdraw forty dollars a year, every single year, and 327 00:15:06,960 --> 00:15:10,160 Speaker 1: you're highly unlikely to outlive the money that you have saved. 328 00:15:10,160 --> 00:15:11,840 Speaker 1: And this rule of thumb, it's called the four percent rule, 329 00:15:11,880 --> 00:15:14,480 Speaker 1: and it comes from the Trinity study that's often cited, 330 00:15:14,760 --> 00:15:17,920 Speaker 1: but basically it just shows that it running like a 331 00:15:17,960 --> 00:15:21,800 Speaker 1: bunch of different scenarios about how the stock market has 332 00:15:21,840 --> 00:15:26,000 Speaker 1: performed across the decades. And if you go by that rule, 333 00:15:26,120 --> 00:15:28,560 Speaker 1: you are highly unlikely to run out of money for 334 00:15:28,640 --> 00:15:31,560 Speaker 1: the thirty year period after you retire, right as long 335 00:15:31,600 --> 00:15:34,680 Speaker 1: as you have that twenty five times annual expenses set aside. 336 00:15:34,880 --> 00:15:36,920 Speaker 1: So crunch your numbers, see if you're on track to 337 00:15:36,960 --> 00:15:39,160 Speaker 1: achieve that, Jason. It sounds like you're more than on 338 00:15:39,200 --> 00:15:41,400 Speaker 1: track to achieve that in all likelihood. But that's a 339 00:15:41,400 --> 00:15:43,560 Speaker 1: good place to start. That's a good rule of thumb 340 00:15:43,600 --> 00:15:46,440 Speaker 1: to consider your at least then aiming at a target. Right, 341 00:15:46,480 --> 00:15:48,400 Speaker 1: you might not be hitting the exact center of the target, 342 00:15:48,440 --> 00:15:50,240 Speaker 1: but you're gonna be close enough. Yeah. And what's so 343 00:15:50,320 --> 00:15:53,200 Speaker 1: great about that too, is it's dependent on your own spending. 344 00:15:53,440 --> 00:15:56,680 Speaker 1: And so whereas somebody might say just a dollar amount, well, 345 00:15:56,720 --> 00:15:58,240 Speaker 1: who the heck not, Like, you don't know what my 346 00:15:58,320 --> 00:16:00,880 Speaker 1: life looks like like. You don't know the different things, 347 00:16:00,880 --> 00:16:02,920 Speaker 1: how many parking tickets and how much money that's gonna 348 00:16:02,920 --> 00:16:04,400 Speaker 1: cost Matt, how much he's racking up, you know, how 349 00:16:04,440 --> 00:16:06,000 Speaker 1: many times I have to pay to get my car 350 00:16:06,040 --> 00:16:08,280 Speaker 1: back from Those are all things you have to count 351 00:16:08,320 --> 00:16:11,440 Speaker 1: in your budget, and they're very personal and so Jason, 352 00:16:11,480 --> 00:16:13,440 Speaker 1: for you to look at how much you're spending every year, 353 00:16:13,720 --> 00:16:15,840 Speaker 1: that will allow you to, I mean, get really day 354 00:16:16,000 --> 00:16:18,520 Speaker 1: close if you can just forecast and look ahead a 355 00:16:18,560 --> 00:16:20,240 Speaker 1: little bit and know what you're likely to spend. One 356 00:16:20,280 --> 00:16:23,120 Speaker 1: of the numbers you said too was two point five million. Well, 357 00:16:23,120 --> 00:16:25,080 Speaker 1: if you do the reverse math, that's a hundred thousand 358 00:16:25,120 --> 00:16:27,840 Speaker 1: dollars a year in expenses, and so maybe your projections 359 00:16:27,840 --> 00:16:30,440 Speaker 1: are pretty spot on. Uh it just again, it all 360 00:16:30,480 --> 00:16:33,640 Speaker 1: depends on what life looks like for you, what life costs, 361 00:16:34,040 --> 00:16:35,720 Speaker 1: and from there you can make those changes no doubt. 362 00:16:35,680 --> 00:16:37,880 Speaker 1: All right, well, let's get to some more listener questions Matt, 363 00:16:38,040 --> 00:16:41,640 Speaker 1: including the warehouse club showdown, Sam's Club verset Costco. We'll 364 00:16:41,640 --> 00:16:53,160 Speaker 1: get to that and more right after this break. All right, 365 00:16:53,200 --> 00:16:55,560 Speaker 1: we are backing. We've got a question about an old 366 00:16:55,560 --> 00:16:57,680 Speaker 1: four O one K with a previous employer. We'll get 367 00:16:57,680 --> 00:16:59,040 Speaker 1: to that one here in a second, but first let's 368 00:16:59,080 --> 00:17:02,600 Speaker 1: talk about where how house clubs. Hello, this is James 369 00:17:02,600 --> 00:17:05,800 Speaker 1: from Champagne, Illinois. In Champagne, we happen to have a 370 00:17:05,840 --> 00:17:08,639 Speaker 1: Sam's Club and a Costco. I was curious if you 371 00:17:08,720 --> 00:17:11,280 Speaker 1: had a recommendation on which one to join. I look 372 00:17:11,320 --> 00:17:13,880 Speaker 1: forward to listening to your podcasts every week and look 373 00:17:13,920 --> 00:17:17,840 Speaker 1: forward to hearing your recommendation. Thanks at These are the 374 00:17:17,920 --> 00:17:20,520 Speaker 1: kind of champagne problems that exists in our world. When 375 00:17:20,560 --> 00:17:23,920 Speaker 1: you live in Champaign, Illinois, you have just a plethora 376 00:17:24,000 --> 00:17:25,600 Speaker 1: of options at your disposal. How did I know you're 377 00:17:25,600 --> 00:17:29,760 Speaker 1: gonna do that? Because dad jokes are strong with me. Yeah, 378 00:17:29,800 --> 00:17:31,399 Speaker 1: I just wanted James to know, I too like to 379 00:17:31,440 --> 00:17:34,560 Speaker 1: go club and from time to time, mostly at the Costco. 380 00:17:34,840 --> 00:17:38,520 Speaker 1: But yeah, this is a great question. And yeah, like 381 00:17:38,680 --> 00:17:41,440 Speaker 1: warehouse clubs, Matt, it's important to note in bolt buying, 382 00:17:41,520 --> 00:17:44,439 Speaker 1: they're not for everyone. We've we've talked about warehouse clubs 383 00:17:44,440 --> 00:17:47,280 Speaker 1: before on on the show. We You and I, well 384 00:17:47,400 --> 00:17:50,680 Speaker 1: kind of mostly me are fans of Costco like Costco, Yeah, 385 00:17:50,800 --> 00:17:52,800 Speaker 1: you do. You're you're kind of coming around on it recently, 386 00:17:53,080 --> 00:17:55,600 Speaker 1: And yeah, we go typically once a month, once every 387 00:17:55,640 --> 00:17:57,960 Speaker 1: three weeks to stock up on some stuff. Some folks 388 00:17:57,960 --> 00:18:00,199 Speaker 1: just don't have a large enough family to make it 389 00:18:00,359 --> 00:18:02,879 Speaker 1: makes sense, or they don't have enough space to store, 390 00:18:03,359 --> 00:18:07,240 Speaker 1: you know, thirty nine or eighty two piece rolls of 391 00:18:07,240 --> 00:18:10,280 Speaker 1: toilet paper. So really, you know, it depends on your lifestyle. Um, 392 00:18:10,400 --> 00:18:13,440 Speaker 1: but yeah, to let you know upfront, James, I am 393 00:18:13,520 --> 00:18:15,639 Speaker 1: biased on this one. Even though I have been a 394 00:18:15,640 --> 00:18:18,760 Speaker 1: Sam's Club member in the past, I'm currently a Costco 395 00:18:18,760 --> 00:18:20,600 Speaker 1: member and have been for quite some time. We'll do 396 00:18:20,640 --> 00:18:22,639 Speaker 1: our best to give you a nuanced answer of you 397 00:18:22,680 --> 00:18:24,919 Speaker 1: know what, when each one makes sense, and maybe what 398 00:18:24,960 --> 00:18:27,840 Speaker 1: the pros and cons are to Sam's versus Costco. I'm 399 00:18:27,840 --> 00:18:29,760 Speaker 1: just gonna let you know up front, I'm I'm biased. 400 00:18:30,200 --> 00:18:31,960 Speaker 1: Kind of goes back to the Upton Sinclaire quote at 401 00:18:31,960 --> 00:18:34,919 Speaker 1: the beginning of although Costco does not in any way 402 00:18:34,960 --> 00:18:38,040 Speaker 1: pay me any money, so it is true, James. One 403 00:18:38,080 --> 00:18:40,600 Speaker 1: of the initial upfront aspects of the Wahouse clubs that's 404 00:18:40,680 --> 00:18:43,520 Speaker 1: easy to compare is the cost of membership. Uh. And 405 00:18:43,560 --> 00:18:45,360 Speaker 1: so let's talk about that for a second. Sam's Club 406 00:18:45,440 --> 00:18:47,920 Speaker 1: it's only forty five dollars for their club membership, whereas 407 00:18:48,000 --> 00:18:51,520 Speaker 1: Costco they charge sixty bucks for their gold Star membership. 408 00:18:51,880 --> 00:18:54,320 Speaker 1: And so while we do like to save money right 409 00:18:54,359 --> 00:18:57,240 Speaker 1: from the get go, I wouldn't let the tiny difference 410 00:18:57,240 --> 00:19:00,600 Speaker 1: in membership fee be the deciding factor here. And actually, 411 00:19:00,640 --> 00:19:03,200 Speaker 1: while we're talking about numbers, another kind of clear and 412 00:19:03,280 --> 00:19:06,280 Speaker 1: easy comparison is the cash back bonus that their credit 413 00:19:06,280 --> 00:19:09,400 Speaker 1: cards pay. Each of those clubs has a credit card 414 00:19:09,400 --> 00:19:13,080 Speaker 1: associated with with your membership. Uh, and specifically you don't 415 00:19:13,119 --> 00:19:14,480 Speaker 1: have to get if you don't want. Yeah, you don't 416 00:19:14,520 --> 00:19:16,800 Speaker 1: have to, but I mean why wouldn't you, because specifically 417 00:19:16,880 --> 00:19:19,639 Speaker 1: on gas it can make a ton of sense. Costcos 418 00:19:19,720 --> 00:19:23,440 Speaker 1: anywhere visa they pay four percent, whereas the Sam's Club 419 00:19:23,480 --> 00:19:27,720 Speaker 1: Master card pays a five percent. Yeah, it's pretty amazing. 420 00:19:28,000 --> 00:19:29,399 Speaker 1: And so if you've got a n e V you 421 00:19:29,440 --> 00:19:32,080 Speaker 1: don't care. That's true. But I mentioned that because if 422 00:19:32,119 --> 00:19:34,159 Speaker 1: you know that you always get gas at one of 423 00:19:34,160 --> 00:19:36,960 Speaker 1: the warehouse clubs, then being aware of that credit card 424 00:19:37,080 --> 00:19:39,680 Speaker 1: benefit it's important. It just depends a lot on what 425 00:19:39,800 --> 00:19:41,959 Speaker 1: you're purchasing from the warehouses. You want to make sure 426 00:19:41,960 --> 00:19:43,479 Speaker 1: that you keep that in mind, because it's not all 427 00:19:43,480 --> 00:19:45,320 Speaker 1: about the numbers. You have to take some other things 428 00:19:45,440 --> 00:19:47,960 Speaker 1: into account as well. True. Yeah, one of the reasons 429 00:19:48,080 --> 00:19:50,920 Speaker 1: we can't only consider just the fees and the cash 430 00:19:50,960 --> 00:19:54,879 Speaker 1: back is because it's difficult to quantify so much of 431 00:19:55,040 --> 00:19:58,560 Speaker 1: what these warehouses have to offer. For instance, prices are 432 00:19:58,760 --> 00:20:01,679 Speaker 1: on average just a bit lower at Costco than they 433 00:20:01,720 --> 00:20:03,800 Speaker 1: are at Sam's, and a lot of that comes down 434 00:20:03,840 --> 00:20:06,600 Speaker 1: to the fact that Sam's tends to carry more name 435 00:20:06,640 --> 00:20:09,560 Speaker 1: brand items, So if you are kind of a name 436 00:20:09,600 --> 00:20:12,720 Speaker 1: brand person, you might tend to like Sam's Club more 437 00:20:13,000 --> 00:20:15,440 Speaker 1: because of that. But one of the big check marks 438 00:20:15,480 --> 00:20:17,800 Speaker 1: I would say in favor of Costco is that they 439 00:20:17,880 --> 00:20:20,920 Speaker 1: have quite a bit of Kirkland Signature products, which is 440 00:20:21,400 --> 00:20:25,040 Speaker 1: their own store brand, and those store brand items tend 441 00:20:25,160 --> 00:20:28,480 Speaker 1: to consistently rate well and get good reviews. In fact, 442 00:20:28,880 --> 00:20:31,359 Speaker 1: Costco has this standard, Matt. I'm not sure if you 443 00:20:31,400 --> 00:20:34,239 Speaker 1: know about this, but they say that any time they 444 00:20:34,320 --> 00:20:38,000 Speaker 1: put Kirtless Today on an item, they wanted to be 445 00:20:38,280 --> 00:20:40,800 Speaker 1: at least a little bit better than the name brand item, 446 00:20:41,000 --> 00:20:43,000 Speaker 1: and I will say I have found that to be true. 447 00:20:43,040 --> 00:20:47,119 Speaker 1: That's pretty high standard. It is like that Kirkland signature jelly. 448 00:20:47,240 --> 00:20:49,480 Speaker 1: Whatever they're doing to it, keep doing it because it's delicious, 449 00:20:49,720 --> 00:20:53,280 Speaker 1: I'll say that. But yeah, they consistently meet that standard. 450 00:20:53,600 --> 00:20:56,160 Speaker 1: And of course that usually means that it's a more 451 00:20:56,320 --> 00:20:59,439 Speaker 1: affordable item too, so it's it goes to show it's 452 00:20:59,480 --> 00:21:02,920 Speaker 1: just hard to put a number on quality, and the 453 00:21:03,040 --> 00:21:06,600 Speaker 1: quality that you perceive really so much depends on kind 454 00:21:06,640 --> 00:21:08,440 Speaker 1: of what you're interested in, the kind of things that 455 00:21:08,480 --> 00:21:10,639 Speaker 1: you shot for when you go to those warehouse clubs, 456 00:21:11,040 --> 00:21:13,680 Speaker 1: and whether you care about name brands or store brands 457 00:21:13,760 --> 00:21:17,040 Speaker 1: or any of that stuff, that's true stuff to quantify quality. Uh. 458 00:21:17,160 --> 00:21:19,560 Speaker 1: And what you're saying is Costco has got that quality. 459 00:21:19,960 --> 00:21:21,280 Speaker 1: And I think one of the other things to keep 460 00:21:21,320 --> 00:21:25,160 Speaker 1: in mind when you're considering going between Costco or sands 461 00:21:25,200 --> 00:21:28,159 Speaker 1: Club is to basically consider which one is closer to 462 00:21:28,160 --> 00:21:30,159 Speaker 1: where you live, or you know, which one is more 463 00:21:30,160 --> 00:21:32,800 Speaker 1: convenient maybe to to where you work. So you kind 464 00:21:32,800 --> 00:21:34,760 Speaker 1: of mentioned how we joined Costco jold, how are kind 465 00:21:34,760 --> 00:21:37,600 Speaker 1: of coming around? Uh? So we joined Costco several months 466 00:21:37,640 --> 00:21:40,639 Speaker 1: ago in order to take advantage of a mortgage refinance 467 00:21:40,840 --> 00:21:43,199 Speaker 1: deal that they had going on. Uh and that alone 468 00:21:43,760 --> 00:21:46,600 Speaker 1: was well worth the costs of joining. But here's the thing, man, 469 00:21:46,760 --> 00:21:49,120 Speaker 1: we still haven't made it out to a Costco here 470 00:21:49,160 --> 00:21:52,800 Speaker 1: in Atlanta because it's so far away. We've only shot 471 00:21:52,880 --> 00:21:55,320 Speaker 1: that one while we were on a trip out of town. 472 00:21:55,440 --> 00:21:57,600 Speaker 1: We I actually haven't been to my quote unquote local 473 00:21:57,720 --> 00:22:01,240 Speaker 1: Costco because in my book, it's not low too far away. 474 00:22:01,760 --> 00:22:04,320 Speaker 1: Uh So, it doesn't matter how great the products are 475 00:22:04,800 --> 00:22:07,800 Speaker 1: if you're never gonna take advantage of that membership. Although 476 00:22:08,119 --> 00:22:11,320 Speaker 1: you can still shop online. And so as a costumer, 477 00:22:11,440 --> 00:22:13,040 Speaker 1: like I recently, I didn't want to go up there 478 00:22:13,080 --> 00:22:15,240 Speaker 1: to pick up a pack of diapers. But it was 479 00:22:15,280 --> 00:22:17,320 Speaker 1: the same price, I think online as it was in store. 480 00:22:17,520 --> 00:22:20,520 Speaker 1: Think I'm pretty sure if something as the prices online 481 00:22:20,600 --> 00:22:22,719 Speaker 1: or more expensive they are, sometimes they are. You're right. 482 00:22:23,040 --> 00:22:25,600 Speaker 1: And so I bought diapers online, had them shipped to 483 00:22:25,680 --> 00:22:27,600 Speaker 1: my door, and even if it was a dollar or 484 00:22:27,640 --> 00:22:29,680 Speaker 1: two more, I know they were really close. I'm pretty 485 00:22:29,680 --> 00:22:31,800 Speaker 1: sure they were the same if you're grilling me, though 486 00:22:31,800 --> 00:22:34,200 Speaker 1: I couldn't. I couldn't swear that it was, but I'm 487 00:22:34,200 --> 00:22:36,000 Speaker 1: pretty sure it was. And so yeah, I got those 488 00:22:36,000 --> 00:22:38,959 Speaker 1: diapers ship to the house and it was really convenient. Um. 489 00:22:39,200 --> 00:22:42,080 Speaker 1: But yeah, I think another thing that James should consider 490 00:22:42,760 --> 00:22:45,879 Speaker 1: is maybe being a member at both And that might 491 00:22:45,960 --> 00:22:49,120 Speaker 1: sound a little crazy, especially you live in Champagne, Illinois. 492 00:22:49,880 --> 00:22:53,480 Speaker 1: You can afford both clubs exactly. Uh and and so yeah, 493 00:22:53,760 --> 00:22:56,240 Speaker 1: maybe maybe James has the Champagne taste and has the 494 00:22:56,359 --> 00:22:58,280 Speaker 1: budget to back it up. But yeah, it really does 495 00:22:58,359 --> 00:23:01,359 Speaker 1: work for some folks who really like stores, and Sam's 496 00:23:01,359 --> 00:23:04,240 Speaker 1: Club has actually know one thing in their favor. They've 497 00:23:04,280 --> 00:23:06,400 Speaker 1: made it easier than ever to shop on their website 498 00:23:06,720 --> 00:23:09,280 Speaker 1: and save with free shipping for plus members on a 499 00:23:09,359 --> 00:23:12,240 Speaker 1: ton of items. Let's say Sam's Club wasn't as close, 500 00:23:12,359 --> 00:23:15,560 Speaker 1: wasn't as convenient, but shopping online works for you. Well, 501 00:23:15,600 --> 00:23:18,240 Speaker 1: they've made it pretty great um and pretty easy to 502 00:23:18,280 --> 00:23:20,359 Speaker 1: get stuff shipped to your door for free. Um. And 503 00:23:20,600 --> 00:23:22,880 Speaker 1: the great thing about either one of these memberships, Matt 504 00:23:23,200 --> 00:23:25,560 Speaker 1: is if that at any point you decide you're not 505 00:23:25,600 --> 00:23:28,399 Speaker 1: getting enough value from it, will either Costco or Sam's 506 00:23:28,440 --> 00:23:31,280 Speaker 1: Club will refund the fees that you paid for that 507 00:23:31,359 --> 00:23:34,000 Speaker 1: membership with no questions asked. They're not gonna like grill 508 00:23:34,040 --> 00:23:37,720 Speaker 1: you and be like excuse me, sir. Yeah, yeah, So 509 00:23:38,200 --> 00:23:40,000 Speaker 1: it's really in their best interests, Like they want to 510 00:23:40,040 --> 00:23:41,760 Speaker 1: wow you, they want to make you happy, and if 511 00:23:41,760 --> 00:23:43,359 Speaker 1: you're not happy, you just ask your money back and 512 00:23:43,400 --> 00:23:45,600 Speaker 1: they say okay. So even if you're on day like 513 00:23:45,840 --> 00:23:48,639 Speaker 1: three sixty four of your membership cycle, that's probably not 514 00:23:48,960 --> 00:23:51,840 Speaker 1: like a kosher a way to go, not the coolest 515 00:23:51,880 --> 00:23:53,760 Speaker 1: thing to do, but you still can cancel and get 516 00:23:53,800 --> 00:23:56,159 Speaker 1: the membership fees refunded to you. So I would say 517 00:23:56,200 --> 00:23:59,160 Speaker 1: because of that, James has nothing to lose, like, give 518 00:23:59,640 --> 00:24:03,960 Speaker 1: both shot and then decide after which one works best 519 00:24:04,080 --> 00:24:06,960 Speaker 1: into you know, most convenient for you, which one fits 520 00:24:07,000 --> 00:24:09,879 Speaker 1: your shopping habits best, And you might find that keeping 521 00:24:09,920 --> 00:24:11,840 Speaker 1: both makes the most sense to you, or you might 522 00:24:11,920 --> 00:24:14,120 Speaker 1: find you know what, now, clearly I want to dish 523 00:24:14,200 --> 00:24:16,320 Speaker 1: this one and go with the other. Yeah, exactly. It 524 00:24:16,359 --> 00:24:19,720 Speaker 1: can be difficult to determine what is worth it to you, 525 00:24:19,920 --> 00:24:22,679 Speaker 1: right because you can crunch the numbers on uh, Sam's 526 00:24:22,680 --> 00:24:24,600 Speaker 1: Club Jelly or the name brand jelly if that's what 527 00:24:24,680 --> 00:24:27,000 Speaker 1: they are carrying their versus the Costco jelly, like like 528 00:24:27,080 --> 00:24:28,800 Speaker 1: Joel talks about. But if you actually try it and 529 00:24:28,880 --> 00:24:31,199 Speaker 1: you don't care and there isn't a difference, it can 530 00:24:31,240 --> 00:24:34,159 Speaker 1: be so difficult to quantify that quality. Uh. And a 531 00:24:34,240 --> 00:24:36,760 Speaker 1: lot of times you have to experience it in order 532 00:24:36,800 --> 00:24:38,959 Speaker 1: to to see if it's if it's worth the money. Uh. 533 00:24:39,040 --> 00:24:40,600 Speaker 1: And Joel, actually this kind of makes me think too, 534 00:24:40,920 --> 00:24:43,639 Speaker 1: what's keeping me from canceling my Costco membership? Because I, 535 00:24:43,800 --> 00:24:45,920 Speaker 1: you know, I did that REFI and if I'm not 536 00:24:46,000 --> 00:24:48,239 Speaker 1: actually gaining any value from that, I mean, that might 537 00:24:48,280 --> 00:24:52,000 Speaker 1: be something that we actually do. Although that Costco anywhere visa, 538 00:24:52,400 --> 00:24:54,399 Speaker 1: I might be tempted to sign up for that just 539 00:24:54,560 --> 00:24:56,240 Speaker 1: just for the rewards, just for that cash back on 540 00:24:56,440 --> 00:24:59,120 Speaker 1: gas purchases alone might be worth it for me. Yeah, 541 00:24:59,240 --> 00:25:02,399 Speaker 1: and I love that that both of those warehouse clubs 542 00:25:02,600 --> 00:25:04,480 Speaker 1: make that a thing. It's like, hey, if you're not satisfied, 543 00:25:04,560 --> 00:25:07,720 Speaker 1: come on back. I love any retailer that stands behind 544 00:25:07,760 --> 00:25:10,040 Speaker 1: the products that they sell, the stand stands behind their 545 00:25:10,080 --> 00:25:13,119 Speaker 1: membership like that. Ari I does very much the same thing. 546 00:25:13,640 --> 00:25:16,280 Speaker 1: And if you're like, hey, I don't like this item 547 00:25:16,320 --> 00:25:20,120 Speaker 1: that I bought, their return policies incredibly generous. And any 548 00:25:20,240 --> 00:25:23,960 Speaker 1: place that prioritizes their customers to that extent is a 549 00:25:24,000 --> 00:25:26,040 Speaker 1: place that I want to shop totally. All right, Well, 550 00:25:26,080 --> 00:25:27,720 Speaker 1: let's let's keep moving on that. Let's get to our 551 00:25:27,800 --> 00:25:30,480 Speaker 1: next question. This one is about what to do with 552 00:25:30,840 --> 00:25:33,400 Speaker 1: an old four o one K that you're hanging onto. Hey, 553 00:25:33,560 --> 00:25:37,600 Speaker 1: Joel and Matt, this is Amanda from Cincinnati, Ohio. First off, 554 00:25:37,680 --> 00:25:39,639 Speaker 1: I just want to say that I love your podcast, 555 00:25:39,880 --> 00:25:41,960 Speaker 1: as it was the first money podcast that I was 556 00:25:42,000 --> 00:25:45,600 Speaker 1: truly able to understand and stick with throughout my financial journey. 557 00:25:46,359 --> 00:25:49,480 Speaker 1: To thank you for everything that you do. I recently 558 00:25:49,560 --> 00:25:53,639 Speaker 1: had a daughter and have switched jobs. I have a 559 00:25:53,680 --> 00:25:56,520 Speaker 1: four oh one K from my previous employer with about 560 00:25:56,600 --> 00:26:00,760 Speaker 1: eighteen thousand dollars in it at Fidelity. My question is 561 00:26:01,119 --> 00:26:03,520 Speaker 1: that I have already rolled over one of my previous 562 00:26:03,600 --> 00:26:06,840 Speaker 1: for oh one ks too, an IRA A with Vanguard. 563 00:26:07,200 --> 00:26:09,800 Speaker 1: I would love to keep one account of Fidelity and 564 00:26:09,960 --> 00:26:12,600 Speaker 1: one Advantguard, but I'm not sure what to do with 565 00:26:12,760 --> 00:26:14,680 Speaker 1: this four oh one k to make sure that I 566 00:26:14,800 --> 00:26:18,040 Speaker 1: keep it growing. Do I transfer it to another type 567 00:26:18,080 --> 00:26:20,800 Speaker 1: of retirement account? And what type? Since I already have 568 00:26:20,880 --> 00:26:24,000 Speaker 1: an IRA, do I leave it a four oh one 569 00:26:24,119 --> 00:26:27,040 Speaker 1: k and continue to fund it. I do have a 570 00:26:27,119 --> 00:26:28,680 Speaker 1: four oh one k at my new job as well. 571 00:26:29,359 --> 00:26:32,280 Speaker 1: For reference, I made about a twenty thousand last year 572 00:26:32,400 --> 00:26:35,440 Speaker 1: married but filing separate, so I'm not sure if I 573 00:26:35,600 --> 00:26:40,239 Speaker 1: can have a roth IRA account. Thank you so much 574 00:26:40,280 --> 00:26:42,320 Speaker 1: for all of your help. It's allowing me to financially 575 00:26:42,440 --> 00:26:45,399 Speaker 1: set up a stable future for my daughter. Hey, Amanda, 576 00:26:45,440 --> 00:26:48,240 Speaker 1: thanks so much for that question in those comments as well. 577 00:26:48,480 --> 00:26:50,399 Speaker 1: We appreciate you listening to the show. There are a 578 00:26:50,480 --> 00:26:52,840 Speaker 1: lot of other great personal finance shows out there, but 579 00:26:52,960 --> 00:26:56,040 Speaker 1: many they do have a too much jargon problem. We 580 00:26:56,080 --> 00:26:58,400 Speaker 1: try to keep our jargon usage to a minimum. When 581 00:26:58,520 --> 00:26:59,960 Speaker 1: when do you when you do want to come up 582 00:27:00,080 --> 00:27:02,600 Speaker 1: with some crazy piece of financial jargon, though, what what 583 00:27:02,720 --> 00:27:04,560 Speaker 1: do you go to, Matt, Do you have one? I'll 584 00:27:04,560 --> 00:27:06,520 Speaker 1: have it on top of money, So I'll tell you 585 00:27:06,600 --> 00:27:08,680 Speaker 1: one that I hate the I think it's just the 586 00:27:08,720 --> 00:27:11,840 Speaker 1: way it sounds. Pay yourself first. I love the concept 587 00:27:12,119 --> 00:27:15,359 Speaker 1: of Yeah, jargon, that's just like a nice informative phrase. 588 00:27:15,400 --> 00:27:17,240 Speaker 1: I don't know, I feel like jargon like are like 589 00:27:17,320 --> 00:27:20,919 Speaker 1: the kind of fancy phrases or terms that don't translate 590 00:27:20,960 --> 00:27:23,679 Speaker 1: to real English. Okay, Like that's the like technical jargon 591 00:27:24,080 --> 00:27:26,800 Speaker 1: like an esop or something like that, Like and that's 592 00:27:26,920 --> 00:27:28,760 Speaker 1: I mean. Acronyms are fine as long as you take 593 00:27:28,800 --> 00:27:30,639 Speaker 1: the time to explain what they stand for. Although we 594 00:27:30,680 --> 00:27:32,359 Speaker 1: did get an email from a listener who was like, 595 00:27:33,240 --> 00:27:35,080 Speaker 1: he said, I didn't know what an IPA was. I 596 00:27:35,119 --> 00:27:36,760 Speaker 1: had to look it up. You guys should really explain 597 00:27:36,800 --> 00:27:38,159 Speaker 1: that in the future. And we drink a lot of 598 00:27:38,200 --> 00:27:39,399 Speaker 1: I p A s. I don't want to explain it 599 00:27:39,480 --> 00:27:42,400 Speaker 1: every time, but maybe we should an India pale. We're 600 00:27:42,480 --> 00:27:45,160 Speaker 1: using beer jargon, but not financial jargon. Well, that's what's 601 00:27:45,280 --> 00:27:46,960 Speaker 1: less important. We will make sure that we explain the 602 00:27:47,000 --> 00:27:48,879 Speaker 1: finances and the beer talk is just there for for 603 00:27:49,040 --> 00:27:51,320 Speaker 1: kicks um, but a man I wanted to say congrats 604 00:27:51,359 --> 00:27:53,840 Speaker 1: too on your baby girl. That's an awesome thing to celebrate. 605 00:27:54,119 --> 00:27:56,919 Speaker 1: But let's go ahead and get your question. You've got 606 00:27:57,000 --> 00:28:00,359 Speaker 1: your accounts at the best possible places, both at Delity 607 00:28:00,560 --> 00:28:03,399 Speaker 1: and Vanguard, and so that's pretty amazing. I love the 608 00:28:03,480 --> 00:28:07,240 Speaker 1: idea of keeping those in place and actually doing business 609 00:28:07,359 --> 00:28:09,560 Speaker 1: with both companies. And so since your four O one 610 00:28:09,640 --> 00:28:12,280 Speaker 1: K is already at a low cost institution, I just 611 00:28:12,400 --> 00:28:15,240 Speaker 1: leave it as is. You mentioned continuing to fund that 612 00:28:15,320 --> 00:28:17,680 Speaker 1: four O one k, however, but that is not something 613 00:28:17,760 --> 00:28:20,640 Speaker 1: that you can do since you are no longer employed there. 614 00:28:20,880 --> 00:28:24,080 Speaker 1: But you can continue to manage that account. Just make 615 00:28:24,080 --> 00:28:26,240 Speaker 1: sure that you don't forget that it exists. You don't 616 00:28:26,240 --> 00:28:29,720 Speaker 1: want to misplace eighteen dollars and realize, oh, wait a minute, 617 00:28:29,720 --> 00:28:31,440 Speaker 1: I had that sitting at this account that I no 618 00:28:31,520 --> 00:28:34,119 Speaker 1: longer have the login info for. That's worse than a 619 00:28:34,160 --> 00:28:36,520 Speaker 1: parking ticket. I'm gonna keep bringing it up as often 620 00:28:36,560 --> 00:28:39,720 Speaker 1: as I can today. All right, bucks Man, No biggie, 621 00:28:40,320 --> 00:28:43,200 Speaker 1: let's continue on though, And again, Amanda, the reason that 622 00:28:43,320 --> 00:28:44,880 Speaker 1: we would suggest that you leave your four O one 623 00:28:45,000 --> 00:28:47,920 Speaker 1: K with Fidelity is because Fidelity is such a great 624 00:28:47,920 --> 00:28:51,160 Speaker 1: company with low to no fees. Um. We there are 625 00:28:51,280 --> 00:28:53,719 Speaker 1: a few companies like that that kind of fit our 626 00:28:53,800 --> 00:28:58,240 Speaker 1: guidelines for greatness, but Fidelity is definitely one of those few. 627 00:28:58,640 --> 00:29:00,720 Speaker 1: So yeah, if you had to us and you're with 628 00:29:00,800 --> 00:29:03,920 Speaker 1: a high cost company that had terrible investing options that 629 00:29:04,080 --> 00:29:07,120 Speaker 1: had expense ratios out the roof, then we would most 630 00:29:07,200 --> 00:29:10,680 Speaker 1: definitely recommend moving on and rolling your money over into 631 00:29:10,760 --> 00:29:12,920 Speaker 1: a company like Fidelity or bank Guard who you're currently with, 632 00:29:13,280 --> 00:29:15,200 Speaker 1: if that's about your and we would recommend you either 633 00:29:15,280 --> 00:29:18,960 Speaker 1: doing that or doing a direct transfer to your new 634 00:29:19,040 --> 00:29:21,920 Speaker 1: employers for oh one k if they allow it. Um. 635 00:29:22,120 --> 00:29:23,680 Speaker 1: But so much of that depends on whether the new 636 00:29:23,720 --> 00:29:26,920 Speaker 1: employer that you're with has is using a high cost 637 00:29:27,080 --> 00:29:28,800 Speaker 1: four O one K provider or one of the low 638 00:29:28,880 --> 00:29:30,960 Speaker 1: cost ones that you mentioned, And if they were doing 639 00:29:31,160 --> 00:29:34,600 Speaker 1: business with one of the high cost UH four own 640 00:29:34,680 --> 00:29:37,840 Speaker 1: K providers, then we'd recommend another four oh one k too. 641 00:29:37,880 --> 00:29:40,480 Speaker 1: I are a rollover similar to what you've already done, 642 00:29:40,840 --> 00:29:42,640 Speaker 1: that's right, And yeah, so leave that four O one 643 00:29:42,720 --> 00:29:45,720 Speaker 1: K put since you're already with Fidelity, And remember again, 644 00:29:45,760 --> 00:29:48,160 Speaker 1: you can't continue to contribute to that old four one k, 645 00:29:48,320 --> 00:29:51,160 Speaker 1: but of course you can contribute quite a bit up 646 00:29:51,200 --> 00:29:53,480 Speaker 1: to the nineteen thousand five dollars each year to the 647 00:29:53,560 --> 00:29:56,240 Speaker 1: new four one K that you have with your current employer. 648 00:29:56,880 --> 00:29:58,840 Speaker 1: But to answer another part of your question, you asked 649 00:29:58,880 --> 00:30:02,800 Speaker 1: about transferring that four one K balance to another type 650 00:30:02,880 --> 00:30:05,640 Speaker 1: of retirement account and converting it to a roth IRA. 651 00:30:05,840 --> 00:30:08,480 Speaker 1: That actually is an option for you, and that's because 652 00:30:08,520 --> 00:30:12,000 Speaker 1: there are income limits placed on your ability to contribute 653 00:30:12,040 --> 00:30:14,960 Speaker 1: to a roth ira in the kind of classic sense. 654 00:30:15,200 --> 00:30:17,920 Speaker 1: But those income limits they don't apply to a four 655 00:30:18,040 --> 00:30:20,840 Speaker 1: one K conversion, and so that means that you can 656 00:30:21,000 --> 00:30:24,360 Speaker 1: actually be a really high earner and still contribute to 657 00:30:24,600 --> 00:30:27,560 Speaker 1: a roth ira via a rollover. Again, money that you've 658 00:30:27,560 --> 00:30:29,760 Speaker 1: contributed to or four one K is pre tax money, 659 00:30:29,800 --> 00:30:33,320 Speaker 1: and so when you make that traditional to rath conversion, 660 00:30:33,600 --> 00:30:36,000 Speaker 1: you're gonna owe some taxes on that money, so be 661 00:30:36,080 --> 00:30:39,880 Speaker 1: prepared for that. But diversifying your tax liability um down 662 00:30:39,920 --> 00:30:43,000 Speaker 1: the road, that's a good strategy, especially if you're expecting 663 00:30:43,040 --> 00:30:46,360 Speaker 1: to continue to earn a higher salary down the road. Uh, 664 00:30:46,440 --> 00:30:48,240 Speaker 1: And so for you to convert some of this money, 665 00:30:48,360 --> 00:30:50,480 Speaker 1: that would be a good way for you to diversify 666 00:30:50,560 --> 00:30:53,320 Speaker 1: that tax liability. But again it's really important to make 667 00:30:53,360 --> 00:30:55,080 Speaker 1: sure that you have the money on hand to pay 668 00:30:55,160 --> 00:30:57,920 Speaker 1: that tax bill that comes due, because there will be one, 669 00:30:58,040 --> 00:30:59,440 Speaker 1: and you can kind of figure out based on how 670 00:30:59,520 --> 00:31:01,800 Speaker 1: much your can verding in what tax bracket you're in, 671 00:31:02,120 --> 00:31:04,440 Speaker 1: you know what that likely amount is going to be. Um, 672 00:31:04,600 --> 00:31:06,960 Speaker 1: you can get it within the ballpark for sure, pretty easily. 673 00:31:07,160 --> 00:31:09,480 Speaker 1: So make sure you're saving for that. But Amanda, that 674 00:31:09,560 --> 00:31:11,080 Speaker 1: was a great question, and best of luck to you 675 00:31:11,400 --> 00:31:13,719 Speaker 1: moving forward, you and your baby girl. All we've got 676 00:31:13,760 --> 00:31:17,160 Speaker 1: a couple more questions to get to, including house hacking. 677 00:31:17,400 --> 00:31:19,800 Speaker 1: Is that a good pursuit? Is that better than maybe 678 00:31:19,840 --> 00:31:22,640 Speaker 1: other types of investing. We'll tackle that and more right 679 00:31:22,680 --> 00:31:33,560 Speaker 1: after this. All Right, we are back and we've got 680 00:31:33,600 --> 00:31:35,840 Speaker 1: a couple more questions we're gonna get to during this episode, 681 00:31:36,000 --> 00:31:38,640 Speaker 1: including this one from a listener who has a few 682 00:31:38,720 --> 00:31:42,400 Speaker 1: questions about emergency funds. Hi, Matt and Joel, this has 683 00:31:42,440 --> 00:31:44,479 Speaker 1: been from Denver and I just started listening to your 684 00:31:44,560 --> 00:31:46,920 Speaker 1: podcasts and I've already learned quite a bit and really 685 00:31:47,000 --> 00:31:50,080 Speaker 1: appreciate your advice. I had a three part question, so 686 00:31:50,240 --> 00:31:52,520 Speaker 1: just bear with me. First, what would you say is 687 00:31:52,520 --> 00:31:54,480 Speaker 1: a safe amount of money to have in a saving 688 00:31:54,680 --> 00:31:58,400 Speaker 1: account for emergency situations? While also not having too much 689 00:31:58,480 --> 00:32:00,200 Speaker 1: to the point where it could be used somewhere else 690 00:32:00,320 --> 00:32:03,200 Speaker 1: where it might be earning more interest. Second, from what 691 00:32:03,280 --> 00:32:05,239 Speaker 1: I've been reading, it might be better to put our 692 00:32:05,280 --> 00:32:08,120 Speaker 1: emergency fund in some kind of other higher interest earning 693 00:32:08,200 --> 00:32:11,400 Speaker 1: savings account rather than just the money market account we 694 00:32:11,480 --> 00:32:14,080 Speaker 1: currently have it in at our credit union, which has 695 00:32:14,120 --> 00:32:17,600 Speaker 1: a fairly low interest rate. Do you have any recommendations 696 00:32:17,680 --> 00:32:21,120 Speaker 1: for higher interest earning accounts for our emergency fund? And 697 00:32:21,200 --> 00:32:24,280 Speaker 1: then lastly, is there any kind of short term investment 698 00:32:24,320 --> 00:32:26,360 Speaker 1: that you would recommend that's low risk but has a 699 00:32:26,440 --> 00:32:29,520 Speaker 1: high return for quickly saving a little cash for something 700 00:32:29,600 --> 00:32:32,440 Speaker 1: like a home improvement project. We're looking at getting a 701 00:32:32,520 --> 00:32:34,520 Speaker 1: deck belt in our backyard in the next two to 702 00:32:34,600 --> 00:32:36,920 Speaker 1: three months, and I was just wondering if there was 703 00:32:36,960 --> 00:32:39,720 Speaker 1: a short term investment that's more productive than just having 704 00:32:39,760 --> 00:32:42,560 Speaker 1: our money sitting on a savings account, or if that's 705 00:32:42,600 --> 00:32:45,400 Speaker 1: just a unicorn. Thanks for your advice and keep doing 706 00:32:45,480 --> 00:32:47,719 Speaker 1: what you're doing. Been so glad to have you as 707 00:32:47,720 --> 00:32:50,640 Speaker 1: a listener. Thank you for your question. Let's get into 708 00:32:50,640 --> 00:32:53,800 Speaker 1: amat less talk emergency funds. It's one of your favorite topics, 709 00:32:53,840 --> 00:32:56,120 Speaker 1: and dude, I love emergency funds. Now they're helpful, right, 710 00:32:56,240 --> 00:32:57,920 Speaker 1: I thought you were making fun of me. Well, I 711 00:32:58,400 --> 00:32:59,640 Speaker 1: like to do that a lot of rag and going 712 00:32:59,680 --> 00:33:02,760 Speaker 1: on episode racking my love for emergency fund. I know 713 00:33:02,880 --> 00:33:05,200 Speaker 1: your emergency fund took a hit with that parking ticket 714 00:33:05,240 --> 00:33:08,440 Speaker 1: that you're recently on the pay. Uh. Yeah, let's let's uh, 715 00:33:08,560 --> 00:33:11,760 Speaker 1: let's dive deep for a second. Three months is a 716 00:33:11,840 --> 00:33:14,800 Speaker 1: great first goal to have when it comes to any fund. Well, 717 00:33:14,960 --> 00:33:17,440 Speaker 1: even before that, you know, you and I we've suggested 718 00:33:17,480 --> 00:33:20,040 Speaker 1: Matt two thousand, four hundred and sixty seven dollars as 719 00:33:20,120 --> 00:33:22,400 Speaker 1: being at least the initial amount you should strive for 720 00:33:22,480 --> 00:33:25,920 Speaker 1: us the beginner's emergency fund exactly. So then three months 721 00:33:25,960 --> 00:33:28,280 Speaker 1: is another great goal, and then six months is another 722 00:33:28,400 --> 00:33:30,720 Speaker 1: reasonable goal to have for many people. Which one you're 723 00:33:30,720 --> 00:33:34,040 Speaker 1: aiming for depends though on your particular circumstances. Are you 724 00:33:34,120 --> 00:33:37,760 Speaker 1: dual income? How much does that income fluctuate? Yeah? Would 725 00:33:37,760 --> 00:33:40,400 Speaker 1: you say that your your job is stable because you 726 00:33:40,440 --> 00:33:42,640 Speaker 1: can't always predict a job loss, but you probably have 727 00:33:42,720 --> 00:33:44,760 Speaker 1: a good idea about how good of a position that 728 00:33:44,800 --> 00:33:47,840 Speaker 1: your employer is in. And yeah, based on your history there, 729 00:33:48,280 --> 00:33:50,640 Speaker 1: you probably have a good idea about what your future looks. 730 00:33:50,680 --> 00:33:53,400 Speaker 1: Like they're It's not something we can predict with a 731 00:33:53,760 --> 00:33:56,640 Speaker 1: percent accuracy, but all the answers to all those questions 732 00:33:56,680 --> 00:33:58,640 Speaker 1: will help point you in the right direction when it 733 00:33:58,720 --> 00:34:01,320 Speaker 1: comes to how big of a emergency fund you're really 734 00:34:01,400 --> 00:34:04,200 Speaker 1: trying to amass um the greater level of stability that 735 00:34:04,320 --> 00:34:08,279 Speaker 1: you have financially and income wise, Uh, the more comfortable 736 00:34:08,320 --> 00:34:10,320 Speaker 1: you should feel. Having a little bit less in that 737 00:34:10,480 --> 00:34:13,200 Speaker 1: e fund but still somewhere between three and six months 738 00:34:13,239 --> 00:34:15,080 Speaker 1: of expenses is the right goal. I would say for 739 00:34:15,200 --> 00:34:17,640 Speaker 1: most people that's right. And it is possible to have 740 00:34:17,960 --> 00:34:20,680 Speaker 1: too much money within an emergency fund. We talked about 741 00:34:20,719 --> 00:34:24,080 Speaker 1: that actually, uh, just a bit in response to Jason's question, 742 00:34:24,400 --> 00:34:26,960 Speaker 1: although his was about having too much in investments. But 743 00:34:27,040 --> 00:34:29,480 Speaker 1: there's just this risk of being, you know, too good 744 00:34:29,560 --> 00:34:31,840 Speaker 1: of a saver and then not allowing your money to 745 00:34:32,040 --> 00:34:35,000 Speaker 1: work for you because you're being too conservative with that money. 746 00:34:35,239 --> 00:34:37,680 Speaker 1: We feel that it is important to take risk with 747 00:34:37,840 --> 00:34:41,040 Speaker 1: your money, and the stats show that it's a particularly 748 00:34:41,080 --> 00:34:43,880 Speaker 1: awful time right now to be a saver. Having liquid 749 00:34:43,920 --> 00:34:46,640 Speaker 1: cash is crucial, it always has been, it always will be. 750 00:34:47,280 --> 00:34:50,080 Speaker 1: But having too much cash that can be harmful over 751 00:34:50,160 --> 00:34:52,480 Speaker 1: the long term. So much of it depends on your 752 00:34:52,600 --> 00:34:56,040 Speaker 1: personal situation, just like Joel said, uh, specifically how dependable 753 00:34:56,040 --> 00:34:58,359 Speaker 1: your income is, how for sure your job is going 754 00:34:58,400 --> 00:35:00,680 Speaker 1: to be. But you also have to away that with 755 00:35:00,840 --> 00:35:04,000 Speaker 1: how comfortable you feel, uh, you know, having less cash 756 00:35:04,040 --> 00:35:06,839 Speaker 1: in the bank. Yeah, Matt, you mentioned that it's uh 757 00:35:07,000 --> 00:35:09,080 Speaker 1: particularly awful time to be a saver right now, and 758 00:35:09,120 --> 00:35:10,840 Speaker 1: we talked about that recently on the show. But just 759 00:35:10,920 --> 00:35:14,360 Speaker 1: the fact that there is one low savings rates and 760 00:35:14,440 --> 00:35:18,120 Speaker 1: then to inflation going up, it just means that your 761 00:35:18,120 --> 00:35:21,120 Speaker 1: money and savings is having a harder time right now, 762 00:35:21,320 --> 00:35:23,600 Speaker 1: and so it's it's, uh, you need to have more 763 00:35:23,640 --> 00:35:26,719 Speaker 1: exposure to the market in order to make sure that 764 00:35:26,800 --> 00:35:29,040 Speaker 1: your money isn't slowly and actually right now a little 765 00:35:29,080 --> 00:35:32,520 Speaker 1: more quickly being just eroded the purchasing power being eroded 766 00:35:32,640 --> 00:35:34,960 Speaker 1: from your savings exactly. Yeah, it's a perfect storm right 767 00:35:35,000 --> 00:35:37,000 Speaker 1: now for savers to see more of their money eroded 768 00:35:37,040 --> 00:35:39,439 Speaker 1: by inflation because they're not getting paid anything with it's 769 00:35:39,480 --> 00:35:41,200 Speaker 1: you know, stashed away in the savings account. Yeah, And 770 00:35:41,200 --> 00:35:42,800 Speaker 1: that doesn't mean that it's not important, because we we 771 00:35:42,880 --> 00:35:45,920 Speaker 1: just mentioned three or six months still very important. Liquid 772 00:35:46,000 --> 00:35:49,279 Speaker 1: cash is important for so many things, including short term 773 00:35:49,440 --> 00:35:53,359 Speaker 1: expenses and including being prepared for potential emergencies. Also, Ben, 774 00:35:53,440 --> 00:35:56,279 Speaker 1: you mentioned having your savings at your credit union. Matt 775 00:35:56,320 --> 00:35:58,440 Speaker 1: and we love credit unions. I believe we dedicated an 776 00:35:58,560 --> 00:36:01,839 Speaker 1: entire episode to how great they are. And but here's 777 00:36:01,880 --> 00:36:05,040 Speaker 1: the thing. One of the places where credit unions aren't 778 00:36:05,080 --> 00:36:07,759 Speaker 1: so great is that they don't pay the best rate 779 00:36:07,800 --> 00:36:10,239 Speaker 1: for savers compared to some of the online banks. So 780 00:36:10,560 --> 00:36:12,439 Speaker 1: that's where we would suggest that you put your money 781 00:36:12,800 --> 00:36:15,359 Speaker 1: for parking e fun cash. You can expect to earn 782 00:36:15,440 --> 00:36:17,800 Speaker 1: half a percent, maybe even a little more with some 783 00:36:17,920 --> 00:36:20,800 Speaker 1: of the solid online banks. And then your money is 784 00:36:20,800 --> 00:36:23,480 Speaker 1: also fully f D I C insured. You know, it's 785 00:36:23,560 --> 00:36:26,200 Speaker 1: it's still insured of the credit union. But just know 786 00:36:26,360 --> 00:36:28,120 Speaker 1: that you're gonna get paid a higher rate if you 787 00:36:28,239 --> 00:36:31,000 Speaker 1: prioritize one of the online banks as opposed to keeping 788 00:36:31,040 --> 00:36:33,120 Speaker 1: your money and savings at the credit union. Um, there 789 00:36:33,160 --> 00:36:36,400 Speaker 1: are always new online banks popping up promising just you know, 790 00:36:36,520 --> 00:36:39,719 Speaker 1: more and more benefits, but you gotta be careful with 791 00:36:39,800 --> 00:36:41,919 Speaker 1: some of those, some of the neo banks. And Matt 792 00:36:41,960 --> 00:36:45,000 Speaker 1: actually just open account with one of these newer online banks. 793 00:36:45,040 --> 00:36:47,520 Speaker 1: It's promising higher returns. He's going to see if it's 794 00:36:47,600 --> 00:36:49,600 Speaker 1: legit and get a feel for their customer service. We'll 795 00:36:49,640 --> 00:36:51,240 Speaker 1: let you know how it goes. We're not even gonna 796 00:36:51,280 --> 00:36:53,440 Speaker 1: say what bank it is because like we want to 797 00:36:53,719 --> 00:36:55,879 Speaker 1: vet it basically before we start talking about it. Yeah, 798 00:36:55,960 --> 00:36:58,360 Speaker 1: but we have other online banks we can point you 799 00:36:58,400 --> 00:37:01,239 Speaker 1: to already, ally Discover or c I T Those are 800 00:37:01,360 --> 00:37:03,759 Speaker 1: three that we mentioned consistently. There are other good ones too, 801 00:37:04,320 --> 00:37:07,399 Speaker 1: But make sure that your money is not earning point 802 00:37:07,440 --> 00:37:09,520 Speaker 1: oh one percent. Make sure it's earning at least half 803 00:37:09,520 --> 00:37:11,480 Speaker 1: a percent. And then Ben, you talked about wanting to 804 00:37:11,560 --> 00:37:15,120 Speaker 1: grow that money at a more rapid pace. Everybody wants 805 00:37:15,160 --> 00:37:18,120 Speaker 1: to accelerate the growth of their money while taking on 806 00:37:18,200 --> 00:37:20,240 Speaker 1: a little to no risk, but that just doesn't exist. 807 00:37:21,000 --> 00:37:22,919 Speaker 1: We have talked about I bonds here on the show. 808 00:37:22,960 --> 00:37:25,080 Speaker 1: Those are great for small amounts of cash that you 809 00:37:25,160 --> 00:37:28,440 Speaker 1: have that you don't want to to get torched by inflation. 810 00:37:28,840 --> 00:37:30,799 Speaker 1: But if you need that money within the next twelve months, 811 00:37:31,000 --> 00:37:33,560 Speaker 1: I bonds won't work for you because you talked about 812 00:37:33,640 --> 00:37:35,799 Speaker 1: needing that money within maybe a month or two. Could 813 00:37:35,840 --> 00:37:38,600 Speaker 1: we interest you in this new crypto coin that Joel 814 00:37:38,640 --> 00:37:41,160 Speaker 1: and I are that we're gonna mint. You might see 815 00:37:41,160 --> 00:37:43,000 Speaker 1: your money go up there, but that is pure speculation 816 00:37:43,080 --> 00:37:45,520 Speaker 1: and you could very well see your money disappear just 817 00:37:45,680 --> 00:37:48,680 Speaker 1: as easily. And so yeah, you asked, uh if something 818 00:37:48,760 --> 00:37:51,040 Speaker 1: like that might be unicorn, and uh, we would have 819 00:37:51,080 --> 00:37:54,839 Speaker 1: to agree. Yeah, earning a great return on short term 820 00:37:54,880 --> 00:37:57,920 Speaker 1: money with no risk, you're definitely entering that unicorn territory 821 00:37:57,960 --> 00:37:59,960 Speaker 1: at that point. Yeah. Good good luck trying to find 822 00:38:00,000 --> 00:38:02,480 Speaker 1: that product because it doesn't really exist, Like, it's just 823 00:38:02,600 --> 00:38:05,000 Speaker 1: not possible. And that's how a lot of people have 824 00:38:05,080 --> 00:38:07,400 Speaker 1: gotten scammed over the years, being promised something that was 825 00:38:07,400 --> 00:38:10,320 Speaker 1: gonna pay mega returns on a short timeline. It sounds 826 00:38:10,360 --> 00:38:12,400 Speaker 1: really good, but it's too good to be true. All right, 827 00:38:12,480 --> 00:38:14,799 Speaker 1: Let's get to our last question of this episode, Matt, 828 00:38:14,840 --> 00:38:17,840 Speaker 1: and this one is about investing less in order to 829 00:38:18,280 --> 00:38:21,239 Speaker 1: pursue house hacking. Hello. My name is Jake and I 830 00:38:21,320 --> 00:38:23,480 Speaker 1: am twenty two and live in the Atlanta area. My 831 00:38:23,640 --> 00:38:26,920 Speaker 1: question is about house hacking and retirement contributions. I currently 832 00:38:26,960 --> 00:38:29,600 Speaker 1: have no debt, three months expenses saved in a high 833 00:38:29,640 --> 00:38:32,840 Speaker 1: old savings account, and I'm contributing of my gross income 834 00:38:32,920 --> 00:38:36,040 Speaker 1: to retirement accounts each month by maxing out my h 835 00:38:36,200 --> 00:38:38,920 Speaker 1: s A roth IRA and putting ten percent and my 836 00:38:39,000 --> 00:38:42,840 Speaker 1: employers wrath for a one K plan. However, after some researching, 837 00:38:42,920 --> 00:38:45,320 Speaker 1: reading and listening to several podcasts, I've decided that I 838 00:38:45,400 --> 00:38:47,480 Speaker 1: think that real estate investing is a good option for me, 839 00:38:47,840 --> 00:38:50,279 Speaker 1: and I would like to start by house hacking. I 840 00:38:50,400 --> 00:38:52,640 Speaker 1: know that real estate investing would require a decent amount 841 00:38:52,680 --> 00:38:54,520 Speaker 1: of capital on hand in cash, but I am finding 842 00:38:54,560 --> 00:38:57,560 Speaker 1: it hard to say beyond and given my current housing expense. 843 00:38:58,600 --> 00:39:01,680 Speaker 1: I know that you encourage listeners to say Clark Howard 844 00:39:01,760 --> 00:39:07,320 Speaker 1: Encourages and another financial podcast I'm enjoying, Urge. My question 845 00:39:07,400 --> 00:39:09,719 Speaker 1: to you, is it worth it decreasing the amount I 846 00:39:09,760 --> 00:39:12,080 Speaker 1: saved my retirement accounts in order to have more cash 847 00:39:12,160 --> 00:39:15,279 Speaker 1: to buy my first property. I expect to save significantly 848 00:39:15,360 --> 00:39:18,319 Speaker 1: over my current renting situation, even after expenses. I look 849 00:39:18,360 --> 00:39:21,319 Speaker 1: forward to your thoughts. Thanks. All right, Hopefully Ben still 850 00:39:21,360 --> 00:39:24,000 Speaker 1: listening because Jake he's got that three month emergency funds 851 00:39:24,040 --> 00:39:26,080 Speaker 1: set up, which is, yeah, like we said earlier, a 852 00:39:26,120 --> 00:39:28,040 Speaker 1: great place to start. Uh And on top of that, 853 00:39:28,320 --> 00:39:32,080 Speaker 1: Jake's crushing it and basically every other way when it 854 00:39:32,120 --> 00:39:35,279 Speaker 1: comes to his personal finances. A Jake, good job. But 855 00:39:35,320 --> 00:39:37,200 Speaker 1: let's go ahead and we'll kind of give you the quick, 856 00:39:37,280 --> 00:39:40,520 Speaker 1: short answer to your question, and we feel that you 857 00:39:40,560 --> 00:39:44,800 Speaker 1: should most definitely consider devoting more of your savings towards 858 00:39:44,920 --> 00:39:47,880 Speaker 1: real estate as opposed to investing that in the market specifically, 859 00:39:47,920 --> 00:39:50,200 Speaker 1: I mean, overall, the thing that's going on here is 860 00:39:50,239 --> 00:39:52,080 Speaker 1: that he's talking about taking that money and investing it. 861 00:39:52,360 --> 00:39:54,560 Speaker 1: He's not talking about taking that money and consuming it, right, 862 00:39:54,600 --> 00:39:56,960 Speaker 1: Because if you were talking about, say, taking that money 863 00:39:57,440 --> 00:39:59,880 Speaker 1: and buying a fancy boat or something like that, that 864 00:40:00,000 --> 00:40:02,279 Speaker 1: would be a completely different story. But the fact that 865 00:40:02,320 --> 00:40:04,600 Speaker 1: he's talking about putting this in real estate, we think 866 00:40:04,760 --> 00:40:07,200 Speaker 1: is a really smart move. Uh. And another reason too, 867 00:40:07,320 --> 00:40:09,879 Speaker 1: is it's just obvious how intentional that Jake is being 868 00:40:09,960 --> 00:40:13,439 Speaker 1: with his money. Uh. Jake, You're not making this decision lightly, 869 00:40:13,520 --> 00:40:15,480 Speaker 1: and you've sounds like you've done your due diligence by 870 00:40:15,600 --> 00:40:17,640 Speaker 1: kind of reading and listening to others on the topic. 871 00:40:17,960 --> 00:40:20,279 Speaker 1: And so that doesn't necessarily mean that you should buy 872 00:40:20,480 --> 00:40:23,200 Speaker 1: a house tomorrow, but you should definitely start heading in 873 00:40:23,280 --> 00:40:25,719 Speaker 1: that direction. There are a lot of folks out there 874 00:40:25,719 --> 00:40:27,719 Speaker 1: who who just liked the idea of how sacking, or 875 00:40:27,760 --> 00:40:29,680 Speaker 1: maybe you know, they've watched a couple of videos, but 876 00:40:29,800 --> 00:40:31,800 Speaker 1: it sounds like that you've done enough digging to know 877 00:40:32,080 --> 00:40:34,799 Speaker 1: the pros and cons. Uh, you've thought about it enough 878 00:40:34,880 --> 00:40:38,279 Speaker 1: to realize too, that this isn't just another form of 879 00:40:38,400 --> 00:40:42,239 Speaker 1: passive investing. You're talking about, uh, taking on this lifestyle change. 880 00:40:42,560 --> 00:40:44,319 Speaker 1: And that's another thing to keep in mind as well, 881 00:40:44,400 --> 00:40:46,759 Speaker 1: because if you're down for this change, then this is 882 00:40:46,800 --> 00:40:48,840 Speaker 1: something that you're going to excel at. I think if 883 00:40:48,880 --> 00:40:52,040 Speaker 1: folks are looking for a you know, comparing apples to apples, well, 884 00:40:52,040 --> 00:40:53,920 Speaker 1: investing in the market in real estate, it's not apples 885 00:40:53,960 --> 00:40:56,120 Speaker 1: to apples. But it sounds like you are all about 886 00:40:56,239 --> 00:40:58,120 Speaker 1: switching up your lifestyle a little bit in order to 887 00:40:58,200 --> 00:41:01,239 Speaker 1: facilitate seeing a higher turn on your money. And you 888 00:41:01,320 --> 00:41:03,000 Speaker 1: mentioned that Jake shouldn't go out there and buy a 889 00:41:03,040 --> 00:41:04,920 Speaker 1: boat like decrease you know what he's putting away for 890 00:41:04,960 --> 00:41:06,680 Speaker 1: retirement and buy a boat. But what if he was 891 00:41:06,680 --> 00:41:09,040 Speaker 1: going to rent that boat out on the equivalent of touro. 892 00:41:09,160 --> 00:41:11,120 Speaker 1: I'm sure there's something like that that exists for boats, 893 00:41:11,320 --> 00:41:13,560 Speaker 1: and if that's the case, Jake, I'm all for it. Uh. 894 00:41:14,120 --> 00:41:15,880 Speaker 1: But now let's keep talking about house hacking. You know, 895 00:41:16,040 --> 00:41:19,040 Speaker 1: since housing is the number one line item in almost 896 00:41:19,120 --> 00:41:22,960 Speaker 1: everybody's budget, Matt. That is a huge reason why house 897 00:41:23,000 --> 00:41:25,160 Speaker 1: hacking is so great. I think it's one of the 898 00:41:25,200 --> 00:41:27,919 Speaker 1: best moves that people who want to get their personal 899 00:41:28,000 --> 00:41:31,359 Speaker 1: finances in order can make. The great thing about house 900 00:41:31,400 --> 00:41:34,440 Speaker 1: hacking is that it can lower those pesky housing costs 901 00:41:34,560 --> 00:41:36,600 Speaker 1: that you mentioned, and in some cases it can get 902 00:41:36,640 --> 00:41:39,600 Speaker 1: better than that. You know, some savvy investors, Jake, who 903 00:41:39,640 --> 00:41:42,360 Speaker 1: are living in like a quadplex, which is four units, 904 00:41:42,600 --> 00:41:44,719 Speaker 1: they're getting paid to do that. They rent out three 905 00:41:44,760 --> 00:41:47,239 Speaker 1: of the units and they live rent free. Uh. You know, 906 00:41:47,320 --> 00:41:49,640 Speaker 1: being able to dedicate less of your take on pay 907 00:41:49,920 --> 00:41:51,839 Speaker 1: to putting a roof over your head is a game 908 00:41:51,920 --> 00:41:55,160 Speaker 1: changer when it comes to accelerating your ability to save 909 00:41:55,239 --> 00:41:57,960 Speaker 1: and invest more down the road. I don't know, Matt, 910 00:41:58,200 --> 00:42:02,879 Speaker 1: of any other single goal uh personal finance move that's 911 00:42:02,920 --> 00:42:06,120 Speaker 1: as big of a game changer as house hacking can 912 00:42:06,200 --> 00:42:09,399 Speaker 1: be and is for so many people. That's right. So, Jake, 913 00:42:09,440 --> 00:42:11,160 Speaker 1: now that you have our blessing, you've got our permission, 914 00:42:11,360 --> 00:42:14,200 Speaker 1: let's talk about what your next steps might be. Go ahead, 915 00:42:14,400 --> 00:42:17,640 Speaker 1: dial back those retirement contributions, uh, and then create a 916 00:42:18,080 --> 00:42:20,480 Speaker 1: separate savings account or at least kind of having some 917 00:42:20,600 --> 00:42:23,800 Speaker 1: separate savings buckets within a single account that is dedicated 918 00:42:23,880 --> 00:42:26,000 Speaker 1: to saving up that down payment that you'll need to 919 00:42:26,040 --> 00:42:28,920 Speaker 1: buy a house. Do some research on specific neighborhoods that 920 00:42:28,960 --> 00:42:30,719 Speaker 1: you think would be a good target for you, then 921 00:42:30,840 --> 00:42:34,120 Speaker 1: get a great real estate agent, and then together we 922 00:42:34,200 --> 00:42:36,640 Speaker 1: want you to kind of stalk those listings. We want 923 00:42:36,640 --> 00:42:39,680 Speaker 1: you to be so familiar with specific properties, with specific streets, 924 00:42:39,719 --> 00:42:41,640 Speaker 1: with the neighborhoods that you're gonna know when you see 925 00:42:41,640 --> 00:42:43,719 Speaker 1: a deal, Because when you see a deal, that's when 926 00:42:43,719 --> 00:42:45,399 Speaker 1: you're gonna want to pounce. You want to be able 927 00:42:45,440 --> 00:42:48,080 Speaker 1: to move quickly on a property that meets your parameters. 928 00:42:48,360 --> 00:42:50,960 Speaker 1: And keep in mind as well, Oftentimes you'll read how 929 00:42:51,280 --> 00:42:53,920 Speaker 1: a multi family house, how the numbers are gonna work 930 00:42:53,920 --> 00:42:56,440 Speaker 1: out best from that standpoint, but keep in mind that 931 00:42:56,520 --> 00:42:59,200 Speaker 1: a single family home that might actually work just as 932 00:42:59,239 --> 00:43:02,399 Speaker 1: well if you're a living in close quarters renting out 933 00:43:02,480 --> 00:43:04,480 Speaker 1: rooms within that house, especially if you have folks who 934 00:43:04,520 --> 00:43:07,480 Speaker 1: are maybe a similar age, you're in a similar life stage, uh, 935 00:43:07,520 --> 00:43:10,680 Speaker 1: and that's something that you're all down to do together. Again, 936 00:43:10,800 --> 00:43:13,160 Speaker 1: keep in mind that it might partly come down not 937 00:43:13,320 --> 00:43:15,440 Speaker 1: just to what the numbers are saying, but whether or 938 00:43:15,440 --> 00:43:17,840 Speaker 1: not this makes sense for you from a lifestyle standpoint, 939 00:43:18,040 --> 00:43:21,280 Speaker 1: no doubt, and Jake, getting going in this direction early 940 00:43:21,760 --> 00:43:24,360 Speaker 1: it can really be like a catapult, you know, just 941 00:43:24,760 --> 00:43:28,000 Speaker 1: slinging you towards financial independence at a really early age, 942 00:43:28,360 --> 00:43:31,359 Speaker 1: giving you a whole lot of flexibility when it comes 943 00:43:31,440 --> 00:43:33,320 Speaker 1: to the house you want to live in if you 944 00:43:33,400 --> 00:43:35,239 Speaker 1: decide to start a family someday, Like if you do 945 00:43:35,400 --> 00:43:37,840 Speaker 1: decide that you want more room, there's there's just so 946 00:43:38,120 --> 00:43:40,480 Speaker 1: much benefit that you can get that you can derive 947 00:43:40,719 --> 00:43:43,800 Speaker 1: from house hacking early on. And so yeah, best of 948 00:43:43,920 --> 00:43:46,040 Speaker 1: luck to you as you pursue this route. It sounds 949 00:43:46,040 --> 00:43:47,959 Speaker 1: like you've done your due diligence and that you're gonna 950 00:43:47,960 --> 00:43:50,640 Speaker 1: crush it. So you said Catapultral It makes me think 951 00:43:50,680 --> 00:43:53,040 Speaker 1: of like on Mario Kart when it's counting down the 952 00:43:53,160 --> 00:43:56,239 Speaker 1: lights and if you mash A and B two and three, 953 00:43:56,440 --> 00:43:59,560 Speaker 1: like you get that turbo right off the line. Jake. 954 00:43:59,640 --> 00:44:02,480 Speaker 1: We feel that you starting to house hack is going 955 00:44:02,520 --> 00:44:04,440 Speaker 1: to get you off that line in a serious way. 956 00:44:04,440 --> 00:44:06,400 Speaker 1: You're gonna be in the lead at least at the beginning. 957 00:44:06,719 --> 00:44:10,120 Speaker 1: You know, uh, Princess might come up behind you and 958 00:44:10,239 --> 00:44:14,120 Speaker 1: take you down. But off the line, this is gonna 959 00:44:14,160 --> 00:44:17,759 Speaker 1: be a serious boost to your personal finances, no doubt. 960 00:44:17,760 --> 00:44:19,000 Speaker 1: All right, let's get back to the beer that we 961 00:44:19,080 --> 00:44:20,560 Speaker 1: had on the show, Matt. This one who is called 962 00:44:20,840 --> 00:44:24,520 Speaker 1: Southern Crisp by Southern Grist. It's a Pilsner style lagger. 963 00:44:24,960 --> 00:44:27,239 Speaker 1: What what were your thoughts on this beer? Man, this 964 00:44:27,320 --> 00:44:29,719 Speaker 1: is a first question beer. That's all I can think 965 00:44:29,760 --> 00:44:32,279 Speaker 1: of with this beer. Definitely a classic lawnmower beer. Oh 966 00:44:32,320 --> 00:44:35,000 Speaker 1: my gosh. Yeah, Like I can't think of any more. 967 00:44:35,200 --> 00:44:37,080 Speaker 1: Like it's just a classic, Like it makes me think 968 00:44:37,160 --> 00:44:39,319 Speaker 1: of like Hommer Simpson. This is what he was drinking 969 00:44:39,360 --> 00:44:42,520 Speaker 1: when he's sitting there from most Like this is just yeah, 970 00:44:42,640 --> 00:44:46,280 Speaker 1: this is just like the quintessential classic beer. Uh, really refreshing, 971 00:44:46,400 --> 00:44:48,880 Speaker 1: easy to drink first quenching like you said. But just 972 00:44:49,000 --> 00:44:51,319 Speaker 1: a beautiful gold color. I always like it when they 973 00:44:51,680 --> 00:44:53,840 Speaker 1: coordinate the color of the label with the color of 974 00:44:53,880 --> 00:44:56,080 Speaker 1: the beer. This is totally one of those beers that 975 00:44:56,120 --> 00:44:57,759 Speaker 1: that I've done that. Like the label of this beer 976 00:44:57,880 --> 00:45:00,680 Speaker 1: is just like a beautiful golden color and that's totally 977 00:45:00,719 --> 00:45:02,560 Speaker 1: what they got going on inside the glass as well. 978 00:45:02,880 --> 00:45:04,640 Speaker 1: But U yeah, I really enjoyed it, man. How a Buchy, Yeah, 979 00:45:04,719 --> 00:45:06,279 Speaker 1: me to know that when you think about what a 980 00:45:06,680 --> 00:45:09,480 Speaker 1: beer tastes like, your assumption would be that it tastes 981 00:45:09,920 --> 00:45:13,600 Speaker 1: like this beer honestly, and there are there are really 982 00:45:13,800 --> 00:45:16,640 Speaker 1: bad styles of this, and most of us have gotten 983 00:45:16,719 --> 00:45:20,439 Speaker 1: used to drinking those kinds, drinking you know, miller or bud, 984 00:45:20,760 --> 00:45:23,880 Speaker 1: you know the macro beers, the macro pills, nurse that 985 00:45:24,600 --> 00:45:27,759 Speaker 1: just taste they're they're they're not good, They're just not good. 986 00:45:28,120 --> 00:45:30,279 Speaker 1: I feel like this beer is what those styles were 987 00:45:30,360 --> 00:45:32,120 Speaker 1: meant to be, and it should be. This is like 988 00:45:32,320 --> 00:45:35,239 Speaker 1: finely crafted and and taste delicious. It's a style of 989 00:45:35,280 --> 00:45:38,439 Speaker 1: beer I find myself surprisingly drinking more of more drawn 990 00:45:38,520 --> 00:45:41,960 Speaker 1: to um. And this particular variety is one that I'm 991 00:45:42,000 --> 00:45:44,799 Speaker 1: gonna pick up again because Southern Grist is just making 992 00:45:44,960 --> 00:45:47,359 Speaker 1: really really good beers, and I like this one a lot. 993 00:45:47,440 --> 00:45:49,920 Speaker 1: That's true. Yeah, we really like heavily hopped I p 994 00:45:50,120 --> 00:45:53,399 Speaker 1: a s really like pale ales for books that don't 995 00:45:53,400 --> 00:45:56,320 Speaker 1: know less jargon of course, for every up there, or 996 00:45:56,440 --> 00:46:00,279 Speaker 1: like massively fruited sours. All of these beers are great 997 00:46:00,320 --> 00:46:02,440 Speaker 1: and we enjoy them. But it's also nice from time 998 00:46:02,440 --> 00:46:04,160 Speaker 1: to time to not have a beer that just completely 999 00:46:04,760 --> 00:46:06,319 Speaker 1: bust you over the head, like this is the kind 1000 00:46:06,360 --> 00:46:08,880 Speaker 1: of beer you want to enjoy while you're eating some pizza, 1001 00:46:09,040 --> 00:46:10,919 Speaker 1: that kind of thing. Right. It's just a nice table 1002 00:46:10,960 --> 00:46:14,000 Speaker 1: beer that you can enjoy with pretty much anything. Definitely 1003 00:46:14,040 --> 00:46:16,040 Speaker 1: a beer that you can enjoy while listening to How 1004 00:46:16,120 --> 00:46:17,920 Speaker 1: the Money and I'll not no, that's going to be 1005 00:46:18,000 --> 00:46:20,160 Speaker 1: it for this episode. Listeners can find our show notes 1006 00:46:20,239 --> 00:46:21,839 Speaker 1: up on our website at how the Money dot com. 1007 00:46:21,920 --> 00:46:23,840 Speaker 1: We'll make sure to link to any resources that we 1008 00:46:23,920 --> 00:46:26,839 Speaker 1: may have mentioned during this episode, no doubt, and if 1009 00:46:26,880 --> 00:46:29,600 Speaker 1: you haven't had a chance to leave a review for 1010 00:46:30,080 --> 00:46:33,040 Speaker 1: our show, we would really appreciate it if you hopped 1011 00:46:33,080 --> 00:46:35,640 Speaker 1: over to Apple podcast or wherever you listen took a 1012 00:46:35,719 --> 00:46:38,800 Speaker 1: few seconds to write a nice note about you know, 1013 00:46:38,960 --> 00:46:41,080 Speaker 1: how the show has helped you out. It helps other 1014 00:46:41,239 --> 00:46:43,600 Speaker 1: listeners know what they're getting into ahead of time and 1015 00:46:43,640 --> 00:46:47,120 Speaker 1: hopefully choose to listen to this show so that they 1016 00:46:47,440 --> 00:46:50,840 Speaker 1: can make better decisions, better moves with their money going forward. 1017 00:46:51,160 --> 00:46:53,120 Speaker 1: So all right, that's gonna do it until next time. 1018 00:46:53,400 --> 00:46:55,200 Speaker 1: Best Friends Out, Best Friends Out,