1 00:00:00,120 --> 00:00:02,680 Speaker 1: Welcome to How the Money. I'm Joel and Ie Matt 2 00:00:02,840 --> 00:00:24,320 Speaker 1: and today we are answering your listener questions. Why do 3 00:00:24,360 --> 00:00:25,759 Speaker 1: you think it is that we decided to go with 4 00:00:25,880 --> 00:00:29,200 Speaker 1: five listener questions? Um, every one of these episodes, it's 5 00:00:29,200 --> 00:00:32,159 Speaker 1: half of ten. It's uh, five times one, I mean 6 00:00:32,360 --> 00:00:34,959 Speaker 1: five fingers on one hand, I don't know that way. 7 00:00:34,960 --> 00:00:37,040 Speaker 1: I could count very easily. I guess we just decided 8 00:00:37,080 --> 00:00:39,960 Speaker 1: that we could squeeze five questions into an episode without 9 00:00:40,120 --> 00:00:42,640 Speaker 1: running too long. We don't want folks sitting around for like, 10 00:00:42,720 --> 00:00:44,680 Speaker 1: you know, an hour and a half, two hours listening 11 00:00:44,720 --> 00:00:47,240 Speaker 1: to us answer listener questions. Yea, if it's just one question, 12 00:00:47,320 --> 00:00:51,159 Speaker 1: then people expect a really, really verbose response, and you 13 00:00:51,159 --> 00:00:54,000 Speaker 1: know most of these questions, that's not necessary. But yeah, 14 00:00:54,040 --> 00:00:57,760 Speaker 1: then if we had a hundred questions to answer an episode, so, 15 00:00:57,800 --> 00:00:59,720 Speaker 1: I don't know, five is nice, you know right there 16 00:00:59,720 --> 00:01:02,920 Speaker 1: in betwe mean one in a hundred, but just not 17 00:01:03,040 --> 00:01:04,400 Speaker 1: right in the middle, you know, right when one and 18 00:01:04,440 --> 00:01:07,040 Speaker 1: a hundred five. Yeah. On that note, we have our 19 00:01:07,080 --> 00:01:09,640 Speaker 1: questions to get to. We're gonna share our thoughts on bitcoin. 20 00:01:09,760 --> 00:01:12,600 Speaker 1: We had a listener who had a question about our 21 00:01:12,640 --> 00:01:14,840 Speaker 1: thoughts on bitcoin we're gonna talk about fixing a credit 22 00:01:14,840 --> 00:01:16,960 Speaker 1: card mistake. UH. And we also had a question from 23 00:01:17,000 --> 00:01:20,240 Speaker 1: a listener who has half of the savings UH in 24 00:01:20,440 --> 00:01:23,880 Speaker 1: Coke Coca Cola company stock. UH. And so we're gonna 25 00:01:23,880 --> 00:01:25,880 Speaker 1: share our thoughts on that. Moved all to pepsi. And 26 00:01:25,959 --> 00:01:29,080 Speaker 1: that's gonna say, that's my knee jerk reaction. You're from 27 00:01:29,400 --> 00:01:31,399 Speaker 1: the greater Atlanta areas and you grew up drinking coke. 28 00:01:31,440 --> 00:01:32,920 Speaker 1: I would never tell him to do that. I grew 29 00:01:33,040 --> 00:01:36,120 Speaker 1: up drinking pepsian. I grew up in Augusta, which is 30 00:01:36,280 --> 00:01:39,039 Speaker 1: very much still Coca Cola territory. That's where the brain 31 00:01:39,120 --> 00:01:41,600 Speaker 1: damage came from. That and what the Savannah River Site 32 00:01:42,200 --> 00:01:45,720 Speaker 1: Radiation League, that's what we always There's always that fear, 33 00:01:45,800 --> 00:01:47,120 Speaker 1: even as a kid. I remember in the back of 34 00:01:47,120 --> 00:01:49,280 Speaker 1: my mind thinking, because you know on the Simpsons that 35 00:01:49,360 --> 00:01:52,080 Speaker 1: they've got the nuclear plant, and there's always it's always 36 00:01:52,160 --> 00:01:55,120 Speaker 1: kind of like an ongoing, you know, mild grade threat 37 00:01:55,160 --> 00:01:57,320 Speaker 1: in the background. And I wonder if that led to 38 00:01:57,360 --> 00:01:59,760 Speaker 1: any anxiety on my part, or if it just means 39 00:01:59,760 --> 00:02:03,680 Speaker 1: I don't care about anything, because it didn't affect me anyway. 40 00:02:03,720 --> 00:02:05,520 Speaker 1: I grew up drinking PEPSI, and that is not what 41 00:02:05,560 --> 00:02:07,920 Speaker 1: we're gonna recommend to that listener, But we are going 42 00:02:08,040 --> 00:02:11,600 Speaker 1: to talk about his specific situation. Uh and for others 43 00:02:11,600 --> 00:02:13,760 Speaker 1: who might be in a similar situation, We're gonna get 44 00:02:13,800 --> 00:02:17,360 Speaker 1: to those three questions plus a couple others during this episode. 45 00:02:17,680 --> 00:02:20,720 Speaker 1: But Jill, first, real quick, I wanted to mention how I, dude, 46 00:02:20,720 --> 00:02:23,960 Speaker 1: I've been on an eBay kick lately. The listeners might remember, 47 00:02:24,800 --> 00:02:26,120 Speaker 1: I don't know, a couple of months ago, I talked 48 00:02:26,120 --> 00:02:29,200 Speaker 1: about selling some of my photography gear. It's been sitting around, 49 00:02:29,360 --> 00:02:32,880 Speaker 1: not doing anything, not earning any money for me, only depreciating. 50 00:02:32,880 --> 00:02:34,320 Speaker 1: And I thought, you know, I've got to get my 51 00:02:34,360 --> 00:02:36,520 Speaker 1: act together. I need to take some pictures. You need 52 00:02:36,560 --> 00:02:38,800 Speaker 1: to write up some listings and get these jokers listed 53 00:02:39,000 --> 00:02:41,120 Speaker 1: on eBay. It feels like a conuntrum though. How do 54 00:02:41,120 --> 00:02:43,440 Speaker 1: you take pictures of the equipment you're supposed to be 55 00:02:43,440 --> 00:02:45,160 Speaker 1: taking pictures with. I will say I did hang onto 56 00:02:45,240 --> 00:02:47,840 Speaker 1: one body because and I thought, I'm still gonna want 57 00:02:47,840 --> 00:02:50,880 Speaker 1: to take some nicer pictures of the family, different things, 58 00:02:50,919 --> 00:02:53,040 Speaker 1: maybe that we need to take pictures of for how 59 00:02:53,040 --> 00:02:55,040 Speaker 1: the money. But I did all of that. I got 60 00:02:55,040 --> 00:02:57,440 Speaker 1: all that equipment listed, and dude, over the past few weeks, 61 00:02:57,639 --> 00:03:01,840 Speaker 1: I have over ten thousand dollars in sales just right 62 00:03:01,840 --> 00:03:04,840 Speaker 1: there on eBay. Yeah, thanks man, And I wanted to 63 00:03:04,880 --> 00:03:07,000 Speaker 1: mention that too, because I've been ebaying for a long time. 64 00:03:07,040 --> 00:03:09,720 Speaker 1: I got like close to twenty years. I sold my 65 00:03:09,720 --> 00:03:14,480 Speaker 1: first item when I was back in college. Great question. 66 00:03:14,840 --> 00:03:16,240 Speaker 1: I don't know. I don't even know if I can 67 00:03:16,240 --> 00:03:18,720 Speaker 1: go back and look, but I do remember early on 68 00:03:18,840 --> 00:03:21,560 Speaker 1: unloading a bunch of c d s because I hadn't 69 00:03:21,600 --> 00:03:23,640 Speaker 1: ripped them all onto my laptop, and I remember thinking, 70 00:03:24,280 --> 00:03:27,000 Speaker 1: CDs are like going to be in the past, you're history. 71 00:03:27,040 --> 00:03:29,600 Speaker 1: Explain what those are for our something your old listeners 72 00:03:29,639 --> 00:03:35,040 Speaker 1: not talking about a certificate of deposits. They are talking 73 00:03:35,120 --> 00:03:38,920 Speaker 1: about musical compact discs anyway. But I wanted to mention 74 00:03:38,920 --> 00:03:41,640 Speaker 1: it because over all those years, man, it's been a 75 00:03:41,640 --> 00:03:44,000 Speaker 1: minute since I have sold something on eBay, and they 76 00:03:44,000 --> 00:03:47,120 Speaker 1: have made it so much easier. Uh. Just They've just 77 00:03:47,160 --> 00:03:49,440 Speaker 1: completely streamlined the process. And it made me realize that 78 00:03:49,480 --> 00:03:51,520 Speaker 1: this is gonna be something I'm going to revisit and 79 00:03:51,520 --> 00:03:53,480 Speaker 1: do more often. If it made me realize that just 80 00:03:53,560 --> 00:03:55,400 Speaker 1: little random things I've got letting around the house. I 81 00:03:55,440 --> 00:03:57,400 Speaker 1: think I'm gonna start putting them on a shelf. It's 82 00:03:57,400 --> 00:03:59,440 Speaker 1: gonna be my eBay shelf, because there are things that 83 00:03:59,440 --> 00:04:01,800 Speaker 1: are either knew that we don't didn't actually use. So 84 00:04:01,880 --> 00:04:03,840 Speaker 1: for instance, we have some printer Inc for a printer 85 00:04:04,280 --> 00:04:06,400 Speaker 1: that we no longer have, and it's perfectly new in 86 00:04:06,440 --> 00:04:08,000 Speaker 1: the package, and I'm like, wait a minute, I was 87 00:04:08,000 --> 00:04:09,960 Speaker 1: getting ready to toss it, or I was gonna put 88 00:04:10,000 --> 00:04:11,400 Speaker 1: on a free cycle kind of thing, but then I 89 00:04:11,400 --> 00:04:13,360 Speaker 1: thought I could probably sell this for twenty bucks because 90 00:04:13,360 --> 00:04:16,040 Speaker 1: that's like a thirty five little box of Inc. Brand new, 91 00:04:16,440 --> 00:04:19,280 Speaker 1: but different things like that. And with how easy they 92 00:04:19,279 --> 00:04:21,479 Speaker 1: make it either using the app or just you know, 93 00:04:21,839 --> 00:04:25,320 Speaker 1: uploading the images online, it felt so much more accessible 94 00:04:25,360 --> 00:04:28,080 Speaker 1: than what I remembered eBay being in the past. Uh 95 00:04:28,120 --> 00:04:29,720 Speaker 1: and too, just the way they do shipping, because you 96 00:04:29,720 --> 00:04:32,440 Speaker 1: can purchase your shipping now online and they'll deduct the 97 00:04:32,480 --> 00:04:35,800 Speaker 1: cost of that label from your earnings and so you 98 00:04:35,839 --> 00:04:37,880 Speaker 1: don't even see that exit like it makes it nice 99 00:04:37,880 --> 00:04:40,760 Speaker 1: and clean within my budget as well, And because we 100 00:04:40,800 --> 00:04:42,920 Speaker 1: get so many things shipped to us in the mail, 101 00:04:43,080 --> 00:04:45,120 Speaker 1: like we we've already got these envelopes and boxes laning 102 00:04:45,120 --> 00:04:47,160 Speaker 1: around the house anyway, and so I don't know, I 103 00:04:47,160 --> 00:04:49,800 Speaker 1: feel like recycling them seriously, And so I feel like 104 00:04:50,000 --> 00:04:51,760 Speaker 1: all of these things coming together has led me to 105 00:04:51,800 --> 00:04:53,960 Speaker 1: realize that, man, I am going to get back on 106 00:04:54,000 --> 00:04:56,799 Speaker 1: my ebaying game. Uh, And I'll keep you posted because 107 00:04:56,920 --> 00:04:59,000 Speaker 1: I've got I set aside our old laptop as well, 108 00:04:59,000 --> 00:05:01,080 Speaker 1: because you know, we almost just gave it away because 109 00:05:01,080 --> 00:05:03,400 Speaker 1: I thought, who is going to want to buy, you know, 110 00:05:03,440 --> 00:05:05,760 Speaker 1: a ten year old MacBook Air. But then I hopped 111 00:05:05,760 --> 00:05:08,280 Speaker 1: on there there's people buying ten old bet Backbook Air, 112 00:05:08,520 --> 00:05:11,719 Speaker 1: one of one of these, Like that's a lot of 113 00:05:11,760 --> 00:05:14,240 Speaker 1: money for it's perfectly functioning, like there's nothing wrong with it, 114 00:05:14,320 --> 00:05:15,920 Speaker 1: and a lot of those are busted. And just get 115 00:05:15,960 --> 00:05:17,840 Speaker 1: to know because you know, Emily, we just got her 116 00:05:17,880 --> 00:05:20,040 Speaker 1: a new laptop because no one was slow, and I'm like, 117 00:05:20,080 --> 00:05:23,680 Speaker 1: but it's still like MacBook Pro or something. It's just 118 00:05:23,720 --> 00:05:26,000 Speaker 1: nothing wrong with that. It was like kind of functioning 119 00:05:26,040 --> 00:05:29,120 Speaker 1: like garbage. But somebody probably wants that. Somebody will pay 120 00:05:29,120 --> 00:05:31,719 Speaker 1: for that spare parts or whatever. The eBay account where 121 00:05:31,720 --> 00:05:33,320 Speaker 1: you've sold stuff before, yeah, but it's been a while, 122 00:05:33,400 --> 00:05:35,159 Speaker 1: so I needed I need to get into that again. 123 00:05:35,200 --> 00:05:37,120 Speaker 1: And I'm sure I could find a ton of things 124 00:05:37,120 --> 00:05:39,360 Speaker 1: around my house just by spending a few minutes to 125 00:05:39,640 --> 00:05:42,080 Speaker 1: sell and make a little bit of sidecash next for 126 00:05:42,160 --> 00:05:44,320 Speaker 1: that weekend cash. And it's better than Facebook Marketplace to 127 00:05:44,440 --> 00:05:47,839 Speaker 1: man because sometimes with larger items. Obviously, Facebook Marketplace is 128 00:05:47,839 --> 00:05:49,120 Speaker 1: easy because you don't have to ship it. We have 129 00:05:49,160 --> 00:05:50,800 Speaker 1: local pick up. But then you're dealing with people who 130 00:05:50,839 --> 00:05:52,440 Speaker 1: don't show up, and then they say they're gonna show 131 00:05:52,520 --> 00:05:54,279 Speaker 1: up save it for me, and then you know somebody 132 00:05:54,279 --> 00:05:56,080 Speaker 1: else that wanted it. You missed out on being able 133 00:05:56,080 --> 00:05:57,360 Speaker 1: to sell it to them because then they went ahead 134 00:05:57,360 --> 00:05:58,680 Speaker 1: and bought you know, bought it new or got it 135 00:05:58,680 --> 00:06:00,240 Speaker 1: from somebody else, that kind of thing. There's just that 136 00:06:00,320 --> 00:06:03,720 Speaker 1: headache factor. And I'm willing to pay a cut to 137 00:06:03,839 --> 00:06:05,880 Speaker 1: eBay in order to not have to deal with that 138 00:06:05,920 --> 00:06:07,440 Speaker 1: and just to kind of ship it out. You've got 139 00:06:07,520 --> 00:06:09,279 Speaker 1: a single shipping day if you've got a few items 140 00:06:09,279 --> 00:06:11,560 Speaker 1: to mail off at the same time, makes it easy. Yeah, 141 00:06:11,560 --> 00:06:13,880 Speaker 1: I think they're both helpful for different items, and you know, 142 00:06:13,920 --> 00:06:16,039 Speaker 1: different depending on what you're trying to do. Like I 143 00:06:16,200 --> 00:06:18,920 Speaker 1: sold an old washer and dryer recently on Facebook yard sale. 144 00:06:19,040 --> 00:06:21,440 Speaker 1: That doesn't really work on you the shipping costs are prohibitive, 145 00:06:21,680 --> 00:06:23,520 Speaker 1: but yeah, I agree, it is a little bit of 146 00:06:23,560 --> 00:06:25,960 Speaker 1: a pain messaging back and forth with twenty different people 147 00:06:26,000 --> 00:06:27,600 Speaker 1: to find the person that's actually going to show up 148 00:06:27,600 --> 00:06:30,159 Speaker 1: and buy the product exactly. All right, Well let's move on. Matt. 149 00:06:30,200 --> 00:06:32,440 Speaker 1: Let's mention the beer that we're having on today's episode. 150 00:06:32,640 --> 00:06:35,200 Speaker 1: This one is called Master Shredder. Brings you back to 151 00:06:35,240 --> 00:06:37,960 Speaker 1: my teenage mutant into Turtle love and days. Who is 152 00:06:38,000 --> 00:06:40,000 Speaker 1: your favorite teenage mutant into Turtle by the way, Well, 153 00:06:40,000 --> 00:06:42,760 Speaker 1: obviously Leonardo because he had the blades, he had the 154 00:06:42,960 --> 00:06:45,720 Speaker 1: two swords. But michel Angelo, guy, really, so you're all 155 00:06:45,760 --> 00:06:48,320 Speaker 1: about the one party. Dude, you know I had a 156 00:06:48,400 --> 00:06:52,160 Speaker 1: thing for Donna Tello. He's he had the stick. He's 157 00:06:52,200 --> 00:06:54,160 Speaker 1: like your spirit turtle. I can see that. Yeah, I 158 00:06:54,160 --> 00:06:55,560 Speaker 1: don't know what was he like the oldest brother or 159 00:06:55,560 --> 00:06:57,560 Speaker 1: something like that. He always seemed like the most responsible, 160 00:06:57,640 --> 00:07:00,280 Speaker 1: cool headed, kind of chill, and so I thought the 161 00:07:00,320 --> 00:07:05,240 Speaker 1: spiritual draw to the turtle wielding the stick. I don't 162 00:07:05,240 --> 00:07:07,280 Speaker 1: know what's the proper term. Is it like a bow 163 00:07:07,560 --> 00:07:10,600 Speaker 1: side or I don't know, Yeah, who knows, but yeah, 164 00:07:10,720 --> 00:07:15,480 Speaker 1: Raphael always got they got the shaft. Those were sides 165 00:07:15,600 --> 00:07:20,040 Speaker 1: what he was okay, but the staff whatever Donna Tella had, Yeah, thanks, 166 00:07:20,760 --> 00:07:24,160 Speaker 1: We digress. This beer is brewed by the Veil Brewing Company, 167 00:07:24,280 --> 00:07:26,280 Speaker 1: and Matt, that makes some good stuff. Looking forward to 168 00:07:26,280 --> 00:07:28,960 Speaker 1: sharing this one with you on today's episode. But let's 169 00:07:29,000 --> 00:07:31,880 Speaker 1: get to listener questions. Uh. If anybody out there has 170 00:07:31,920 --> 00:07:34,040 Speaker 1: a question they want to pose to you and me, 171 00:07:34,240 --> 00:07:36,000 Speaker 1: there's an easy way to submit it. Just go to 172 00:07:36,000 --> 00:07:39,240 Speaker 1: our website at how to money dot com slash ask. 173 00:07:39,520 --> 00:07:41,720 Speaker 1: It'll take you two minutes to toss your question our 174 00:07:41,760 --> 00:07:43,480 Speaker 1: way and hopefully we can get to it on the 175 00:07:43,600 --> 00:07:47,480 Speaker 1: next Ask HTM episode. Matt. This first question comes from 176 00:07:47,520 --> 00:07:50,080 Speaker 1: a listener who wants to know our thoughts on crypto. 177 00:07:50,720 --> 00:07:55,400 Speaker 1: Hi there, this is Chelsea Ferik from Santa Maria, California, 178 00:07:56,000 --> 00:07:59,760 Speaker 1: and I wanted to get both of your guy's opinion 179 00:08:00,040 --> 00:08:04,920 Speaker 1: on bitcoin. Thank you man. I gotta say I love 180 00:08:04,960 --> 00:08:08,360 Speaker 1: the short and sweet questions and she just gets right 181 00:08:08,400 --> 00:08:10,400 Speaker 1: to the point. Thank you to the chase. Thank you, Chelsea. 182 00:08:10,560 --> 00:08:15,840 Speaker 1: This one is really really straightforward from the listener question standpoint, 183 00:08:16,000 --> 00:08:18,320 Speaker 1: but from the answering standpoint, there's a lot more nuance 184 00:08:18,360 --> 00:08:20,120 Speaker 1: that we have to throw in there. When it comes 185 00:08:20,160 --> 00:08:23,640 Speaker 1: to our our thoughts on bitcoin specifically, and mad I 186 00:08:23,640 --> 00:08:25,320 Speaker 1: think we should talk just about kind of crypto in 187 00:08:25,360 --> 00:08:28,160 Speaker 1: general for a second. But why don't you get us started, 188 00:08:28,240 --> 00:08:31,560 Speaker 1: because you are a little more bullish than I am. 189 00:08:31,600 --> 00:08:33,040 Speaker 1: On I think I am, I think I think a 190 00:08:33,080 --> 00:08:35,200 Speaker 1: little bit more. Yeah, okay, So I actually opted to 191 00:08:35,200 --> 00:08:39,240 Speaker 1: invest a super small overall portion of my investments into crypto, 192 00:08:39,600 --> 00:08:42,840 Speaker 1: both bitcoin as well as ethereum, about seven months ago. 193 00:08:43,240 --> 00:08:46,040 Speaker 1: And actually it was our conversation with Jacob Goldstein back 194 00:08:46,040 --> 00:08:49,120 Speaker 1: in episode three nineteen that finally convinced me, which is 195 00:08:49,120 --> 00:08:51,839 Speaker 1: a really fun conversation. He wrote about the history of money, 196 00:08:51,960 --> 00:08:53,719 Speaker 1: and it was just kind of fascinating. Yeah, exactly. And 197 00:08:53,800 --> 00:08:55,199 Speaker 1: so here's the thing. It's not that he made the 198 00:08:55,240 --> 00:09:00,000 Speaker 1: recommendation that we should or shouldn't invest in bitcoin or cryptocurrencies, uh, 199 00:09:00,000 --> 00:09:02,080 Speaker 1: But as we talked about the history of money, he 200 00:09:02,160 --> 00:09:04,839 Speaker 1: explained how it all came down to trust as the 201 00:09:05,080 --> 00:09:08,800 Speaker 1: collective confidence increases in a given form of currency, right, 202 00:09:08,840 --> 00:09:10,760 Speaker 1: and he kind of talked through some of the different examples, 203 00:09:10,760 --> 00:09:13,040 Speaker 1: and so whether that be like shells or coins, or 204 00:09:13,040 --> 00:09:15,400 Speaker 1: paper money or or money that's like printed on leather, 205 00:09:15,840 --> 00:09:19,960 Speaker 1: that belief is what enables a currency to actually function 206 00:09:20,200 --> 00:09:22,440 Speaker 1: and to actually work properly. So even though I do 207 00:09:22,520 --> 00:09:26,400 Speaker 1: believe that the fundamentals that the technological advances should eventually 208 00:09:26,440 --> 00:09:30,160 Speaker 1: lead to just a wider adoption of cryptocurrencies, that's nothing. 209 00:09:30,400 --> 00:09:32,960 Speaker 1: If there isn't buy in and uh and others who 210 00:09:33,040 --> 00:09:35,360 Speaker 1: actually believe in it as well. You can have the 211 00:09:35,400 --> 00:09:37,400 Speaker 1: most brilliant idea, and if you're not able to sell 212 00:09:37,440 --> 00:09:39,640 Speaker 1: it to people, if if folks aren't willing to commit 213 00:09:39,760 --> 00:09:41,960 Speaker 1: and give it a try, uh, it doesn't really matter. 214 00:09:42,200 --> 00:09:44,240 Speaker 1: And so at this point, I feel that it's more 215 00:09:44,320 --> 00:09:47,600 Speaker 1: about the fact that there is more collective confidence within 216 00:09:47,679 --> 00:09:50,000 Speaker 1: crypto And so for me, that was definitely the point 217 00:09:50,040 --> 00:09:51,719 Speaker 1: that I had gotten to when I when it's sort 218 00:09:51,720 --> 00:09:53,560 Speaker 1: of clicked in my mind that you know what, it's 219 00:09:53,600 --> 00:09:56,840 Speaker 1: not even I don't have to perfectly understand the blockchain, 220 00:09:57,440 --> 00:10:00,080 Speaker 1: I don't have to perfectly understand all of the applications 221 00:10:00,120 --> 00:10:02,480 Speaker 1: for this technology. But I felt for me personally at 222 00:10:02,559 --> 00:10:04,559 Speaker 1: least that we had reached a sort of critical mass 223 00:10:04,880 --> 00:10:07,680 Speaker 1: to where at least I was willing to jump in. Yeah, Matt, 224 00:10:07,679 --> 00:10:11,160 Speaker 1: and I actually followed suit. Just last month, I decided 225 00:10:11,200 --> 00:10:14,559 Speaker 1: to put a little bit of money into bitcoin and 226 00:10:14,600 --> 00:10:16,959 Speaker 1: ethereum as well, and you got it on sales because 227 00:10:16,960 --> 00:10:19,240 Speaker 1: you're like, I don't know about before, but now the 228 00:10:19,280 --> 00:10:21,160 Speaker 1: prices as low as they are, You're like, I could 229 00:10:21,160 --> 00:10:23,440 Speaker 1: see myself getting into it a little bit exactly. Yeah, 230 00:10:23,440 --> 00:10:26,200 Speaker 1: I got in right when bitcoin was down at about 231 00:10:26,280 --> 00:10:31,360 Speaker 1: like some bitcoin. But really, there's just so much volatility 232 00:10:31,400 --> 00:10:33,880 Speaker 1: in the crypto space. But I feel like even in 233 00:10:33,920 --> 00:10:36,679 Speaker 1: the midst of that volatility, we've seen some added stability 234 00:10:36,920 --> 00:10:40,720 Speaker 1: to bitcoin and ether that hadn't really existed before. And 235 00:10:40,760 --> 00:10:43,160 Speaker 1: I feel like, like you said, Matt, there is this 236 00:10:43,200 --> 00:10:46,800 Speaker 1: sort of wide adoption that's happening. We're we're seeing more 237 00:10:46,840 --> 00:10:50,480 Speaker 1: countries and companies adopting cryptocurrency and taking that as a 238 00:10:50,520 --> 00:10:54,199 Speaker 1: form of payments. There's more institutional belief that some forms 239 00:10:54,240 --> 00:10:56,559 Speaker 1: of crypto can and will be used in real life. 240 00:10:56,960 --> 00:10:59,160 Speaker 1: And Yeah, because of that, I felt compelled to have 241 00:10:59,320 --> 00:11:02,800 Speaker 1: at least some exposure in the space. Another example, Matt 242 00:11:02,880 --> 00:11:06,040 Speaker 1: that really kind of made me think, oh, yeah, I'm 243 00:11:06,080 --> 00:11:09,640 Speaker 1: glad that I hold at least some cryptocurrency was the 244 00:11:09,640 --> 00:11:13,000 Speaker 1: second largest mortgage lender in the United States. They're gonna 245 00:11:13,040 --> 00:11:16,440 Speaker 1: start accepting payment in bitcoin later this year, so yeah, 246 00:11:16,440 --> 00:11:20,080 Speaker 1: these used case scenarios are playing out as bitcoin is 247 00:11:20,240 --> 00:11:24,000 Speaker 1: being more legitimized, right, And as more institutions adopt bitcoin, 248 00:11:24,080 --> 00:11:26,640 Speaker 1: more individuals are going to as well. If you can 249 00:11:26,640 --> 00:11:28,880 Speaker 1: pay your mortgage with bitcoin, or if you can check 250 00:11:28,880 --> 00:11:32,520 Speaker 1: out at Walmart using bitcoin, then more and more people 251 00:11:32,520 --> 00:11:37,040 Speaker 1: are going to see it as a secure and reliable 252 00:11:37,120 --> 00:11:40,200 Speaker 1: form of payment. And I feel like the adoption curve 253 00:11:40,360 --> 00:11:43,240 Speaker 1: was was growing enough that it made me at least 254 00:11:43,480 --> 00:11:46,559 Speaker 1: interested to have like a small steak in in that 255 00:11:47,120 --> 00:11:49,160 Speaker 1: in that space. Yeah, yeah, And as you know, you 256 00:11:49,160 --> 00:11:53,080 Speaker 1: give some examples of different institutions adopting cryptocurrencies. As more 257 00:11:53,120 --> 00:11:57,120 Speaker 1: institutions adopt bitcoin, more individuals will then also follow suit, right, 258 00:11:57,240 --> 00:12:00,000 Speaker 1: Like it really is this potentially like endless feedback loop. 259 00:12:00,440 --> 00:12:02,360 Speaker 1: Even the fact that we talked about crypto here on 260 00:12:02,360 --> 00:12:04,240 Speaker 1: the show, I think that might you know, that gets 261 00:12:04,240 --> 00:12:06,000 Speaker 1: all of our listeners out there just a little bit 262 00:12:06,000 --> 00:12:07,880 Speaker 1: more comfortable with the idea of it. And so like 263 00:12:07,920 --> 00:12:09,480 Speaker 1: maybe you're listening and you think, you know, why not 264 00:12:09,600 --> 00:12:11,480 Speaker 1: I'll just put a hundred dollars in uh, you know, 265 00:12:11,520 --> 00:12:13,880 Speaker 1: of course, this is assuming you're in a healthy financial position. 266 00:12:14,040 --> 00:12:17,280 Speaker 1: But as more individuals make that small move personally. Uh. 267 00:12:17,400 --> 00:12:21,120 Speaker 1: More money enters into the cryptocurrencies, into bitcoin, more companies 268 00:12:21,120 --> 00:12:23,959 Speaker 1: and countries will then likely make that move too, uh, 269 00:12:24,000 --> 00:12:26,400 Speaker 1: and then this repeats again and again, and so yeah, 270 00:12:26,480 --> 00:12:28,080 Speaker 1: keep in mind, you know, we're not recommending that you 271 00:12:28,120 --> 00:12:31,000 Speaker 1: go all in, like, please don't do that, but I 272 00:12:31,040 --> 00:12:34,240 Speaker 1: am definitely comfortable with having some play money just on 273 00:12:34,280 --> 00:12:37,000 Speaker 1: the side. You know that might see some serious volatility, 274 00:12:37,000 --> 00:12:38,360 Speaker 1: but of course there's also the chance to see that 275 00:12:38,440 --> 00:12:40,880 Speaker 1: investment go up in value as well. The way I 276 00:12:40,920 --> 00:12:42,840 Speaker 1: think about it right now is sort of like imagine 277 00:12:42,880 --> 00:12:47,120 Speaker 1: cryptocurrencies being like this brand new path that somebody's like 278 00:12:47,240 --> 00:12:49,880 Speaker 1: trailblazing into the woods. Right, Like, you've got the main path, 279 00:12:50,120 --> 00:12:51,480 Speaker 1: the path that most people take, and you see this 280 00:12:51,520 --> 00:12:54,320 Speaker 1: person like maybe I know, taking a shortcut, um, but 281 00:12:54,559 --> 00:12:56,640 Speaker 1: it's kind of hard going, and you can if you're 282 00:12:56,640 --> 00:12:59,000 Speaker 1: that person and you're doing it all alone, well, there's 283 00:12:59,040 --> 00:13:01,520 Speaker 1: not much good there, even though that the fundamentals might 284 00:13:01,559 --> 00:13:02,920 Speaker 1: be right where it's just like, hey, guys, this is 285 00:13:02,920 --> 00:13:04,880 Speaker 1: a shortcut, or this is going to be a path 286 00:13:04,920 --> 00:13:07,559 Speaker 1: to a great view. It's gonna be more difficult when 287 00:13:07,559 --> 00:13:10,800 Speaker 1: there's not a lot of people also going on that path, right, Uh, 288 00:13:11,120 --> 00:13:12,880 Speaker 1: so it's kind of hard going. You're having to like 289 00:13:13,400 --> 00:13:16,760 Speaker 1: whack down you know, bushes, there's big rocks in the way. 290 00:13:16,840 --> 00:13:19,280 Speaker 1: But as you go down that path and as other 291 00:13:19,280 --> 00:13:21,600 Speaker 1: people join you for the path becomes a little bit 292 00:13:21,600 --> 00:13:24,080 Speaker 1: more and more well worn. Uh. And then before you 293 00:13:24,080 --> 00:13:25,600 Speaker 1: know it, folks who said that they would never go 294 00:13:25,679 --> 00:13:27,920 Speaker 1: down that path are looking at it and they're like, Okay, 295 00:13:28,040 --> 00:13:30,520 Speaker 1: I've seen people go down that path, check out that 296 00:13:30,600 --> 00:13:33,280 Speaker 1: view and come back. You've actually seen them do that. 297 00:13:33,520 --> 00:13:35,360 Speaker 1: And so there's gonna be more individuals, I think, who 298 00:13:35,360 --> 00:13:37,920 Speaker 1: are willing to take that step. You don't have to 299 00:13:37,920 --> 00:13:40,280 Speaker 1: go all in uh and take this massive plunge, but 300 00:13:40,320 --> 00:13:42,760 Speaker 1: we do think that it is worth keeping an eye on. Yeah. 301 00:13:42,800 --> 00:13:45,040 Speaker 1: And and even you and I right have changed our 302 00:13:45,320 --> 00:13:48,080 Speaker 1: position to a certain degree when it comes to cryptocurrency. 303 00:13:48,240 --> 00:13:51,120 Speaker 1: I think we were never against it, but for a 304 00:13:51,160 --> 00:13:52,880 Speaker 1: long time you and I had no stake, we had 305 00:13:52,880 --> 00:13:55,960 Speaker 1: no position in and we zero interesting. But we really 306 00:13:55,960 --> 00:13:59,959 Speaker 1: actually still recommend the same thing to listeners who want 307 00:14:00,000 --> 00:14:02,920 Speaker 1: to get involved in and we're taking the same approach ourselves, 308 00:14:03,080 --> 00:14:05,319 Speaker 1: even though we now have a little bit of a 309 00:14:05,360 --> 00:14:07,720 Speaker 1: bitcoin and either very little. It is is one of 310 00:14:07,720 --> 00:14:11,400 Speaker 1: those things where we recommend you think in the same terms, like, 311 00:14:11,640 --> 00:14:13,640 Speaker 1: because we don't know which specific coins are going to 312 00:14:13,679 --> 00:14:15,760 Speaker 1: be the winners and losers in the space. Yeah, there's 313 00:14:15,760 --> 00:14:18,440 Speaker 1: a lot of unanswered questions. We we don't know if 314 00:14:18,640 --> 00:14:21,120 Speaker 1: threats of greater regulation are going to help or hurt 315 00:14:21,200 --> 00:14:24,600 Speaker 1: the adoption of cryptocurrency. There's a little bit of evidence 316 00:14:24,840 --> 00:14:27,120 Speaker 1: that either one of those things can happen, right, But 317 00:14:27,160 --> 00:14:29,080 Speaker 1: there's still a lot of speculation going on in the 318 00:14:29,120 --> 00:14:32,000 Speaker 1: space too, so I would be careful before putting much 319 00:14:32,040 --> 00:14:34,240 Speaker 1: money there. You know, our general rule of thumb is 320 00:14:34,240 --> 00:14:37,560 Speaker 1: that you should use at most five of your investment 321 00:14:37,560 --> 00:14:40,479 Speaker 1: money to play around with. Make sure that you're maximizing 322 00:14:40,480 --> 00:14:44,640 Speaker 1: your exposure to index funds inside of traditional retirement accounts first, 323 00:14:44,920 --> 00:14:46,880 Speaker 1: and if you've got some money leftover that you're willing 324 00:14:46,920 --> 00:14:48,680 Speaker 1: to put at risk, it's okay to put some of 325 00:14:48,680 --> 00:14:51,880 Speaker 1: that money in bitcoin or into other cryptocurrencies that you're 326 00:14:51,920 --> 00:14:55,160 Speaker 1: interested in, Bitcoin being the one that has the most 327 00:14:55,360 --> 00:14:57,720 Speaker 1: proven path right over the most well trodden path mat 328 00:14:57,720 --> 00:15:00,200 Speaker 1: to use your analogy. But yeah, it's still important thing 329 00:15:00,440 --> 00:15:03,160 Speaker 1: to proceed slowly and to not get reckless in this 330 00:15:03,200 --> 00:15:06,480 Speaker 1: space because there's just a lot more proven track record 331 00:15:06,680 --> 00:15:09,960 Speaker 1: when it comes to the path of investing in index 332 00:15:10,000 --> 00:15:14,320 Speaker 1: funds in the stock market inside tax advantage accounts. So 333 00:15:14,400 --> 00:15:17,160 Speaker 1: we would say put your efforts there. But if you 334 00:15:17,200 --> 00:15:19,800 Speaker 1: really want to, you know, putting a small amount of 335 00:15:19,840 --> 00:15:23,200 Speaker 1: the money that you have available to invest into the 336 00:15:23,200 --> 00:15:25,440 Speaker 1: crypto space, we're okay with that. Yeah. Well, and another 337 00:15:25,440 --> 00:15:27,760 Speaker 1: thing too is that we wouldn't recommend this to anyone 338 00:15:27,920 --> 00:15:29,920 Speaker 1: if they're going to get stressed about it, right, or like, 339 00:15:29,960 --> 00:15:31,360 Speaker 1: if you think it's gonna take up too much of 340 00:15:31,360 --> 00:15:33,960 Speaker 1: your mental bandwidth, we would say that this is something 341 00:15:34,040 --> 00:15:36,560 Speaker 1: you should avoid because at that point, it's just not gonna, 342 00:15:36,760 --> 00:15:38,600 Speaker 1: you know, it's not gonna be worth the toll that 343 00:15:38,600 --> 00:15:40,920 Speaker 1: it's gonna take on you. Uh. And if that's who 344 00:15:40,960 --> 00:15:43,000 Speaker 1: you are and you can identify that, that's totally fine. 345 00:15:43,360 --> 00:15:46,600 Speaker 1: You can let other folks like us gingerly try it 346 00:15:46,600 --> 00:15:48,360 Speaker 1: out and we'll keep you posted. We can be the 347 00:15:48,360 --> 00:15:50,920 Speaker 1: canaries in the coal mine. Though we don't consider ourselves 348 00:15:50,960 --> 00:15:53,080 Speaker 1: to be you know, on the cutting edge by any stretch. 349 00:15:53,440 --> 00:15:55,840 Speaker 1: We're still pretty late to the to the game by 350 00:15:55,840 --> 00:15:59,960 Speaker 1: bitcoin standards. Uh, And we are still retaining a healthy skepticism. 351 00:16:00,040 --> 00:16:02,320 Speaker 1: Do you have the laser eyes in your profile on Twitter. 352 00:16:02,400 --> 00:16:05,520 Speaker 1: Yet got the diamond hands. Uh, I mean we are, 353 00:16:05,640 --> 00:16:07,520 Speaker 1: we are interested in it, and like you said, Jill, 354 00:16:07,680 --> 00:16:10,600 Speaker 1: over time, as it becomes something that is more proven, like, 355 00:16:10,640 --> 00:16:12,520 Speaker 1: it's obviously going to be more volatile, So there's no 356 00:16:12,640 --> 00:16:15,320 Speaker 1: question about that compared to the traditional stock market. But 357 00:16:15,320 --> 00:16:17,880 Speaker 1: I'm willing to say that my view towards cryptocurrencies over 358 00:16:17,920 --> 00:16:21,760 Speaker 1: the next several years will likely change, and I think 359 00:16:21,760 --> 00:16:24,480 Speaker 1: it's healthy to change and to reassess and reevaluate things. 360 00:16:24,760 --> 00:16:26,640 Speaker 1: But for now, right now, this is where you and 361 00:16:26,680 --> 00:16:29,960 Speaker 1: I stand when it comes to cryptocurrency. Yeah, I'm curious 362 00:16:29,960 --> 00:16:31,840 Speaker 1: to see what happens in the future, and I wanted 363 00:16:31,800 --> 00:16:35,600 Speaker 1: at least a very small bit of exposure to Bitcoin 364 00:16:35,840 --> 00:16:38,640 Speaker 1: and you know, some of the other potentially popular cryptocurrencies. 365 00:16:38,840 --> 00:16:40,560 Speaker 1: But it's a it's a space we will be focused 366 00:16:40,560 --> 00:16:42,280 Speaker 1: on and we will continue to talk about on the show. 367 00:16:42,400 --> 00:16:44,880 Speaker 1: So Chelsea, thanks for your question and best of luck 368 00:16:45,360 --> 00:16:47,760 Speaker 1: in uh, you know, dipping your toe in the water 369 00:16:47,920 --> 00:16:50,560 Speaker 1: five percent or less? Yes, exactly. We have more questions 370 00:16:50,560 --> 00:16:54,280 Speaker 1: to get to though, Matt, including one about the guy 371 00:16:54,320 --> 00:16:56,680 Speaker 1: who owns a heck of a lot of Coca Cola stock. 372 00:16:56,720 --> 00:16:58,800 Speaker 1: Will get We'll get to that question and more right 373 00:16:58,840 --> 00:17:09,720 Speaker 1: after this break. M All right, Joel, we are back 374 00:17:09,720 --> 00:17:12,000 Speaker 1: from the break. We're taking listener questions in our next 375 00:17:12,080 --> 00:17:15,000 Speaker 1: question comes from a couple who is doing a killer 376 00:17:15,080 --> 00:17:16,880 Speaker 1: job with their money. They just want to know what 377 00:17:16,920 --> 00:17:20,679 Speaker 1: they should be doing next. Hey, Matt and Joel. My 378 00:17:20,760 --> 00:17:24,520 Speaker 1: name is Zoe from Albany, New York. I love the pod, 379 00:17:24,760 --> 00:17:27,560 Speaker 1: and today I have a question about my short to 380 00:17:27,720 --> 00:17:31,480 Speaker 1: medium term financial goals. In the podcast, you talk a 381 00:17:31,480 --> 00:17:35,720 Speaker 1: lot about emergency funds and long term investing, and I 382 00:17:35,800 --> 00:17:38,760 Speaker 1: have about six months worth of expenses in my emergency 383 00:17:38,840 --> 00:17:42,159 Speaker 1: fund and I'm regularly contributing to a four oh one 384 00:17:42,280 --> 00:17:45,480 Speaker 1: K with an employer match. My husband and I also 385 00:17:45,520 --> 00:17:47,760 Speaker 1: own a two family house that we live in and 386 00:17:47,800 --> 00:17:51,040 Speaker 1: rent out half of to pay the mortgage. We're saving 387 00:17:51,040 --> 00:17:54,640 Speaker 1: to buy another home in about two to five years, 388 00:17:54,760 --> 00:17:58,359 Speaker 1: depending on how quickly we can save. My question is 389 00:17:58,640 --> 00:18:02,040 Speaker 1: what should we do if that money? Should we invest 390 00:18:02,119 --> 00:18:04,920 Speaker 1: it and if so in what or should we keep 391 00:18:04,920 --> 00:18:08,159 Speaker 1: it sitting in our savings. I should also mention that 392 00:18:08,240 --> 00:18:10,959 Speaker 1: we have a baby on the way. Thanks so much 393 00:18:11,040 --> 00:18:14,000 Speaker 1: for all your great advice. Zoe. First off, we gotta 394 00:18:14,000 --> 00:18:17,040 Speaker 1: wish you a congrats on that baby. Always exciting to 395 00:18:17,040 --> 00:18:20,240 Speaker 1: bring another baby into the fan. And I feel like 396 00:18:20,440 --> 00:18:23,520 Speaker 1: to Matt, I don't know about you, but having the 397 00:18:23,560 --> 00:18:26,720 Speaker 1: first baby really was a big deal in terms of 398 00:18:26,880 --> 00:18:29,920 Speaker 1: getting some motivation, financial goals, and maybe you want to 399 00:18:29,960 --> 00:18:33,919 Speaker 1: pursue certain certain things like with even greater fervor just 400 00:18:33,960 --> 00:18:36,639 Speaker 1: to kind of feel like I was financially ready to 401 00:18:36,640 --> 00:18:38,960 Speaker 1: to bring that baby in the world. Totally having a partner, 402 00:18:39,040 --> 00:18:40,600 Speaker 1: that's one thing, because it's like, okay, you can always 403 00:18:40,640 --> 00:18:42,880 Speaker 1: just you know, find a new partner if I were 404 00:18:42,920 --> 00:18:45,400 Speaker 1: to die, and you're smart enough probably you know, do okay, 405 00:18:45,400 --> 00:18:47,480 Speaker 1: and you can work about a baby. It's like, oh 406 00:18:47,480 --> 00:18:51,480 Speaker 1: my gosh, this is a human being that's it's completely 407 00:18:51,520 --> 00:18:53,879 Speaker 1: helpless and there's nothing else that they can do except 408 00:18:53,960 --> 00:18:57,200 Speaker 1: for cry and poop and nurse. Well, it sounds like 409 00:18:57,240 --> 00:18:59,560 Speaker 1: that is what what Zoe is doing though, right like 410 00:18:59,760 --> 00:19:03,000 Speaker 1: that that she and her hardner are focused on doing 411 00:19:03,040 --> 00:19:05,920 Speaker 1: great things um before this baby comes into the world, 412 00:19:05,960 --> 00:19:07,440 Speaker 1: and and that they've been doing it for a while. 413 00:19:07,440 --> 00:19:10,000 Speaker 1: Their house hacking right now, which is awesome. What a 414 00:19:10,000 --> 00:19:11,639 Speaker 1: great way to build up your savings and to be 415 00:19:11,640 --> 00:19:14,240 Speaker 1: able to ramp up your ability to invest more money 416 00:19:14,320 --> 00:19:17,879 Speaker 1: really quickly. And basically, you know, with this investment property 417 00:19:18,280 --> 00:19:21,320 Speaker 1: and the stock to fund that they've got and also 418 00:19:21,440 --> 00:19:25,560 Speaker 1: those regular contributions to the retirement accounts, they're setting themselves 419 00:19:25,640 --> 00:19:28,320 Speaker 1: up really nicely. And yeah, when you've got those ducks 420 00:19:28,359 --> 00:19:30,360 Speaker 1: in a row, a questions like a question like this 421 00:19:30,640 --> 00:19:33,960 Speaker 1: really does allow for a whole lot more flexibility when 422 00:19:33,960 --> 00:19:37,080 Speaker 1: it comes to ye choosing what's right for Zoe and 423 00:19:37,080 --> 00:19:40,520 Speaker 1: her family in the coming years exactly. And so Zoe, 424 00:19:40,640 --> 00:19:42,480 Speaker 1: let's get to your question here about where to put 425 00:19:42,520 --> 00:19:44,480 Speaker 1: this money that you plan on putting towards the house. 426 00:19:44,920 --> 00:19:47,320 Speaker 1: These medium term investing goals can be the hardest thing 427 00:19:47,359 --> 00:19:49,800 Speaker 1: to get right, um, and specifically a two to five 428 00:19:49,880 --> 00:19:53,920 Speaker 1: year window is really tricky. That's because like I would 429 00:19:54,000 --> 00:19:57,200 Speaker 1: take a very different path with a two year kind 430 00:19:57,240 --> 00:19:59,360 Speaker 1: of time frame that I would with a five year 431 00:19:59,760 --> 00:20:02,280 Speaker 1: type frame. Right, they're almost like two different questions, And 432 00:20:02,320 --> 00:20:03,600 Speaker 1: so that's kind of how we're going to answer this. 433 00:20:03,960 --> 00:20:05,520 Speaker 1: So much of this kind of comes down to your 434 00:20:05,520 --> 00:20:08,959 Speaker 1: actual timeline into your particular risk tolerance. Uh. And so 435 00:20:09,000 --> 00:20:11,639 Speaker 1: if you definitely need that money closer to the twenty 436 00:20:11,640 --> 00:20:14,920 Speaker 1: four months from now, like I would forego investing altogether, 437 00:20:15,600 --> 00:20:17,720 Speaker 1: or or I'd at least be you know, very conservative 438 00:20:17,760 --> 00:20:20,119 Speaker 1: with that money that you're investing. Because of the massive 439 00:20:20,160 --> 00:20:22,200 Speaker 1: spread and UH and the interest that you learned between 440 00:20:22,320 --> 00:20:24,800 Speaker 1: savings or a CD versus an I bond, we would 441 00:20:24,800 --> 00:20:27,200 Speaker 1: recommend that you shovel more of that money into something 442 00:20:27,240 --> 00:20:29,439 Speaker 1: like an I bond, which you can do up to 443 00:20:29,560 --> 00:20:31,840 Speaker 1: ten thousand dollars per year. That would make sense, and 444 00:20:31,880 --> 00:20:33,320 Speaker 1: that would be a safe place for you to put 445 00:20:33,560 --> 00:20:35,359 Speaker 1: this money. That was kind of like on the short 446 00:20:35,440 --> 00:20:38,440 Speaker 1: to medium term length of time. Yeah, but you're right, man, 447 00:20:38,440 --> 00:20:40,119 Speaker 1: it is a tricky question because to your money and 448 00:20:40,200 --> 00:20:42,359 Speaker 1: five your money is there's kind of a different answer 449 00:20:42,400 --> 00:20:44,080 Speaker 1: to to each one of those. It's a it's a 450 00:20:44,119 --> 00:20:47,160 Speaker 1: tricky time frame. But if the time frame is more 451 00:20:47,200 --> 00:20:49,639 Speaker 1: flexible and you actually do have five years until you 452 00:20:49,640 --> 00:20:51,280 Speaker 1: plan to use it, that's a different story. I would 453 00:20:51,280 --> 00:20:53,280 Speaker 1: say you put it to work, you know, it's I'd 454 00:20:53,280 --> 00:20:56,200 Speaker 1: personally feel comfortable putting quite a bit of that money 455 00:20:56,240 --> 00:20:58,719 Speaker 1: in the market if my timeline was that lengthy, in 456 00:20:58,760 --> 00:21:02,080 Speaker 1: particular with rates on savings being as low as they 457 00:21:02,080 --> 00:21:04,680 Speaker 1: are right now. But if you aren't willing or able 458 00:21:04,720 --> 00:21:07,080 Speaker 1: to stomach the ups and downs in let's say, like 459 00:21:07,119 --> 00:21:10,600 Speaker 1: a total stock market fund. Because of potential market volatility 460 00:21:10,600 --> 00:21:13,760 Speaker 1: that you could experience, consider investing the money, but just 461 00:21:13,800 --> 00:21:17,119 Speaker 1: doing so more conservatively. So instead of a different savings 462 00:21:17,240 --> 00:21:19,119 Speaker 1: vehicle like an I bond that we might recommend on 463 00:21:19,160 --> 00:21:22,520 Speaker 1: to your money, a target date fund that's closer to 464 00:21:23,000 --> 00:21:26,440 Speaker 1: now than closer to your actual target date could give 465 00:21:26,480 --> 00:21:28,680 Speaker 1: you a nice mix of stocks and bonds that will 466 00:21:28,720 --> 00:21:31,800 Speaker 1: make your investing ride a bit smoother. So investing that 467 00:21:31,840 --> 00:21:35,440 Speaker 1: money in like or twenty thirty target date fund could 468 00:21:35,480 --> 00:21:37,960 Speaker 1: be the right move for you. Most folks only consider 469 00:21:38,000 --> 00:21:40,720 Speaker 1: target date funds for retirement, but they can also work 470 00:21:40,800 --> 00:21:42,600 Speaker 1: well for a goal that you might have four years 471 00:21:42,640 --> 00:21:44,479 Speaker 1: from now. You just gotta pick a different target date 472 00:21:44,520 --> 00:21:47,119 Speaker 1: fund exactly. And of course, yeah, you're not putting that 473 00:21:47,160 --> 00:21:49,200 Speaker 1: in a retirement account. You're putting it in a taxable 474 00:21:49,200 --> 00:21:51,400 Speaker 1: brokerage account. And the other thing too. When you're looking 475 00:21:51,440 --> 00:21:53,640 Speaker 1: at these target date funds, make sure that you get 476 00:21:53,640 --> 00:21:56,439 Speaker 1: one with a lower expense ratio, like something around like 477 00:21:56,520 --> 00:21:58,720 Speaker 1: point one point two percent, and avoid some of those 478 00:21:58,760 --> 00:22:01,080 Speaker 1: funds out there that are charged and you like point 479 00:22:01,119 --> 00:22:04,679 Speaker 1: seven point eight point nine percent. We mentioned Vanguard and 480 00:22:04,680 --> 00:22:07,320 Speaker 1: Fidelity a bunch here on the show because they are great. 481 00:22:07,640 --> 00:22:10,800 Speaker 1: But for example, Fidelity, they have a five target date 482 00:22:10,800 --> 00:22:13,600 Speaker 1: fund that costs point one two percent, but they also 483 00:22:13,680 --> 00:22:16,440 Speaker 1: have one that costs point six three percent, and they're 484 00:22:16,640 --> 00:22:19,880 Speaker 1: very similar in performance. They're both funds. I'm so thrown 485 00:22:19,920 --> 00:22:22,040 Speaker 1: off by that. I don't I don't really quite understand 486 00:22:22,080 --> 00:22:24,440 Speaker 1: why Fidelity has two options and why they differ so 487 00:22:24,520 --> 00:22:26,600 Speaker 1: much when it comes to the expense ratio. But yeah, 488 00:22:26,880 --> 00:22:28,760 Speaker 1: if you're gonna go with one of those with Fidelity, 489 00:22:28,800 --> 00:22:31,439 Speaker 1: which Fidelity is great, like, it's a great choice, make 490 00:22:31,440 --> 00:22:33,560 Speaker 1: sure you choose the one that has an expense ratio 491 00:22:33,600 --> 00:22:35,200 Speaker 1: that's half a point less. Yeah, I mean you you 492 00:22:35,280 --> 00:22:36,760 Speaker 1: might if you look at the short term, like the 493 00:22:36,800 --> 00:22:40,080 Speaker 1: near term results, like there might be some difference in performance. 494 00:22:40,119 --> 00:22:43,040 Speaker 1: But that's the thing. We also have gone through something 495 00:22:43,080 --> 00:22:44,840 Speaker 1: crazy over the past couple of years, and so that's 496 00:22:44,880 --> 00:22:48,080 Speaker 1: going to impact that. I believe the performance of the 497 00:22:48,080 --> 00:22:50,399 Speaker 1: one year in the three years significantly, because you know, 498 00:22:50,400 --> 00:22:52,160 Speaker 1: you look at let's say the tenure performance on those 499 00:22:52,200 --> 00:22:55,040 Speaker 1: and it's virtually the same. Actually, the cheaper fund does 500 00:22:55,119 --> 00:22:57,520 Speaker 1: better over ten years, and so that's just something to 501 00:22:57,600 --> 00:22:59,280 Speaker 1: keep in mind, and so you know, we kind of 502 00:22:59,280 --> 00:23:01,760 Speaker 1: mentioned lifestyle to at the beginning. It's important to keep 503 00:23:01,760 --> 00:23:05,160 Speaker 1: in mind, like how set you are on making sure 504 00:23:05,200 --> 00:23:07,239 Speaker 1: that money is available for you when you want to 505 00:23:07,280 --> 00:23:09,560 Speaker 1: buy that new place because you're talking about having this baby. 506 00:23:10,000 --> 00:23:12,080 Speaker 1: If you know that, like, no, in exactly two and 507 00:23:12,080 --> 00:23:14,400 Speaker 1: a half years, I am going to want more space. 508 00:23:14,520 --> 00:23:16,680 Speaker 1: We're both working from home now, we're going to have 509 00:23:16,720 --> 00:23:18,440 Speaker 1: a baby room. We still want to have a guest room, 510 00:23:18,480 --> 00:23:21,200 Speaker 1: say for family when they come and visit. That might 511 00:23:21,280 --> 00:23:23,600 Speaker 1: lead me to be more conservative with my money and 512 00:23:23,600 --> 00:23:26,600 Speaker 1: to hang onto it for it to be accessible. Compare 513 00:23:26,600 --> 00:23:28,760 Speaker 1: that to if you if you didn't really care, right, so, say, 514 00:23:28,760 --> 00:23:30,080 Speaker 1: if you're like you know, I mean, in five years, 515 00:23:30,119 --> 00:23:31,520 Speaker 1: it might be nice to be able to have that 516 00:23:31,560 --> 00:23:33,960 Speaker 1: new place, but if the market is down, we would 517 00:23:34,000 --> 00:23:35,560 Speaker 1: just let it right out for another year or two 518 00:23:35,640 --> 00:23:38,560 Speaker 1: until the market's recovered. Yeah, if you can be patient exactly. Yeah, 519 00:23:38,600 --> 00:23:40,680 Speaker 1: if you can be patient and you have more flexibility 520 00:23:40,800 --> 00:23:42,919 Speaker 1: on what your life looks like, then that would be 521 00:23:42,920 --> 00:23:46,160 Speaker 1: a situation where I would be much more comfortable investing 522 00:23:46,240 --> 00:23:48,800 Speaker 1: that money and taking a little bit more risk, No doubt, man, 523 00:23:48,840 --> 00:23:50,840 Speaker 1: I totally agree. So Zoe, best of luck to you 524 00:23:50,920 --> 00:23:53,439 Speaker 1: and your fam and we hope that was helpful and 525 00:23:53,480 --> 00:23:56,880 Speaker 1: instructive for what you do next with this money. And Matt, 526 00:23:56,960 --> 00:23:59,399 Speaker 1: let's get to the next question on our list. This 527 00:23:59,440 --> 00:24:01,919 Speaker 1: one has some similarities. It's about saving money, but this 528 00:24:01,960 --> 00:24:04,919 Speaker 1: one revolves around whether holding a large position in an 529 00:24:05,000 --> 00:24:07,880 Speaker 1: individual stock is a good idea in that case. Hey, 530 00:24:07,960 --> 00:24:11,080 Speaker 1: Joel and Matt, It's Jason from Rochester, New York. You 531 00:24:11,080 --> 00:24:13,560 Speaker 1: guys been talking quite a bit about these I bonds, 532 00:24:13,640 --> 00:24:16,320 Speaker 1: and it looks like you're somewhere between one and three 533 00:24:17,200 --> 00:24:20,840 Speaker 1: yield on them. Um, I kind of want a different route. 534 00:24:20,880 --> 00:24:23,919 Speaker 1: And I have about half of my savings in Coca 535 00:24:23,960 --> 00:24:26,639 Speaker 1: Cola stock. I know there's uh, you know, five or 536 00:24:26,680 --> 00:24:31,720 Speaker 1: ten large cap companies that offer pretty good dividends, and 537 00:24:31,800 --> 00:24:34,480 Speaker 1: I'm just wondering what you've what you think about the 538 00:24:34,560 --> 00:24:37,159 Speaker 1: idea of doing that rather than investing in something like 539 00:24:37,160 --> 00:24:40,879 Speaker 1: an I bond. Thanks, Hey, Jason, that is true I bonds. 540 00:24:41,320 --> 00:24:43,199 Speaker 1: We've been talking a lot about I bonds. We actually 541 00:24:43,200 --> 00:24:47,199 Speaker 1: just did with Zoey's question al right before years, but 542 00:24:47,240 --> 00:24:49,760 Speaker 1: putting your savings in stock here's the thing, Like, don't 543 00:24:49,760 --> 00:24:52,320 Speaker 1: get us wrong, we love Coke, but investing somebody likes 544 00:24:52,320 --> 00:24:56,000 Speaker 1: pepsi more, some dummy. I've changed by ways. And my 545 00:24:56,080 --> 00:24:57,680 Speaker 1: dad he's changed his ways too. He used to be 546 00:24:57,760 --> 00:24:59,520 Speaker 1: all about all about pepsi and now he likes Coke. 547 00:25:00,040 --> 00:25:02,000 Speaker 1: It all comes down to that taste test, right, because 548 00:25:02,040 --> 00:25:03,760 Speaker 1: like you have one little sipo pepsi and you're like, oh, 549 00:25:03,760 --> 00:25:05,520 Speaker 1: I think I want that, But you have an entire 550 00:25:05,560 --> 00:25:07,680 Speaker 1: glass of pepsi and you say, oh, that's too much, 551 00:25:08,800 --> 00:25:12,240 Speaker 1: too sweet. Yeah. Uh, But Jason, like we do think 552 00:25:12,280 --> 00:25:15,040 Speaker 1: Coke is a great company, we actually prefer the beverage 553 00:25:15,040 --> 00:25:18,200 Speaker 1: over pepsi as well. But investing your actual savings, even 554 00:25:18,200 --> 00:25:20,560 Speaker 1: in a company of solid and as long standing as Coke, 555 00:25:21,160 --> 00:25:24,240 Speaker 1: is putting that money at higher risk than we would recommend. 556 00:25:24,600 --> 00:25:28,439 Speaker 1: Last March, the valuation of Coke stock dropped alongside with 557 00:25:28,520 --> 00:25:30,320 Speaker 1: the rest of the market, and their stock price was 558 00:25:30,359 --> 00:25:33,760 Speaker 1: cut almost in half. Granted, drops like that are rare, 559 00:25:34,400 --> 00:25:37,520 Speaker 1: but those types of events don't happen with money that 560 00:25:37,560 --> 00:25:40,840 Speaker 1: you have stashed within a savings account. Yeah, and Jason, 561 00:25:40,880 --> 00:25:43,879 Speaker 1: you mentioned that you were doing this with half your 562 00:25:43,880 --> 00:25:46,280 Speaker 1: savings though, so so at least you have access to 563 00:25:46,440 --> 00:25:49,560 Speaker 1: some risk free money on the sidelines in what I'm 564 00:25:49,600 --> 00:25:52,080 Speaker 1: assuming is a basic shape us account. And and here's 565 00:25:52,080 --> 00:25:54,600 Speaker 1: the thing that the better your financial situation gets over 566 00:25:54,640 --> 00:25:57,640 Speaker 1: the years, the more risk you are able to realistically 567 00:25:57,640 --> 00:25:59,680 Speaker 1: take on, just kind of like we were talking about earlier, Matt. 568 00:25:59,720 --> 00:26:02,680 Speaker 1: The longer your time horizon, the more you can take 569 00:26:02,720 --> 00:26:05,280 Speaker 1: on risk and be okay with it. Well, for instance, 570 00:26:05,359 --> 00:26:08,400 Speaker 1: if you've paid off your mortgage and your monthly expenses 571 00:26:08,400 --> 00:26:10,359 Speaker 1: are low, you've got more wiggle room to keep a 572 00:26:10,400 --> 00:26:13,199 Speaker 1: smaller emergency fund on hand. Right, you can take a 573 00:26:13,280 --> 00:26:17,240 Speaker 1: riskier strategy because, like you're doing with some of that money, 574 00:26:17,480 --> 00:26:19,920 Speaker 1: even though it's not something that you know, we would 575 00:26:19,920 --> 00:26:22,960 Speaker 1: say is ideal to have your savings is in particular 576 00:26:22,960 --> 00:26:24,920 Speaker 1: in a single stock, to have money that you need 577 00:26:24,960 --> 00:26:27,120 Speaker 1: to have on hand. If we're talking about an over 578 00:26:27,200 --> 00:26:30,280 Speaker 1: abundance of savings, then I guess, yeah, you can get 579 00:26:30,320 --> 00:26:32,679 Speaker 1: a little riskier with it. Right. So that's assuming somebody 580 00:26:32,720 --> 00:26:34,800 Speaker 1: is in a really great financial position. But let's say 581 00:26:34,840 --> 00:26:38,200 Speaker 1: instead that your financial situation is maybe a little bit precarious. 582 00:26:38,440 --> 00:26:40,880 Speaker 1: Let's say you've got a ton of student loan debt, 583 00:26:40,880 --> 00:26:42,720 Speaker 1: maybe you've also got a mortgage, Maybe you have a 584 00:26:42,800 --> 00:26:45,800 Speaker 1: job that comes with a little bit of uncertainty. If 585 00:26:45,840 --> 00:26:48,879 Speaker 1: your finances are more precarious, then you should lean harder 586 00:26:49,040 --> 00:26:52,680 Speaker 1: towards the certainty of cash within a savings account. Ultimately, 587 00:26:52,760 --> 00:26:55,720 Speaker 1: you've you've got to know the overall risk of having 588 00:26:55,760 --> 00:26:58,480 Speaker 1: some of your savings h in an individual stock and 589 00:26:58,480 --> 00:27:01,840 Speaker 1: how much a specific risk that poses to your specific finances. So, 590 00:27:01,920 --> 00:27:04,520 Speaker 1: for instance, if coke stock took a similar hit, so 591 00:27:04,640 --> 00:27:06,399 Speaker 1: you know what it did this past spring, or you 592 00:27:06,440 --> 00:27:08,639 Speaker 1: know the spring of like, would you be able to 593 00:27:08,640 --> 00:27:12,520 Speaker 1: weather it even if an emergency did arise, Or is 594 00:27:12,560 --> 00:27:14,720 Speaker 1: there a chance that you would be forced to sell 595 00:27:15,240 --> 00:27:19,159 Speaker 1: at an inopportune time and then lock in those actual losses. 596 00:27:19,240 --> 00:27:21,000 Speaker 1: That's what we're trying to get you to avoid here. 597 00:27:21,119 --> 00:27:23,160 Speaker 1: And it's important to note that a lot of time, 598 00:27:23,320 --> 00:27:27,439 Speaker 1: when emergencies arise, sometimes they can be completely individualistic, right 599 00:27:27,520 --> 00:27:30,480 Speaker 1: like my air conditioner went out and I wasn't expecting it, 600 00:27:30,520 --> 00:27:33,240 Speaker 1: and now I have to fork over to get a 601 00:27:33,280 --> 00:27:36,440 Speaker 1: new one. That that is one type of emergency circumstance. 602 00:27:36,440 --> 00:27:39,520 Speaker 1: But a lot of times emergencies happen in the overall 603 00:27:39,560 --> 00:27:43,480 Speaker 1: economy that caused a whole lot of individual emergencies for people, 604 00:27:43,600 --> 00:27:45,280 Speaker 1: like the loss of a job or something like that 605 00:27:45,400 --> 00:27:48,639 Speaker 1: due to pull backs from an employer. And yeah, you 606 00:27:48,680 --> 00:27:51,480 Speaker 1: might or something as global as a virus, right right, 607 00:27:51,520 --> 00:27:53,320 Speaker 1: And so yeah, you might have a lot of people 608 00:27:53,320 --> 00:27:56,639 Speaker 1: found themselves in a position last March where if they 609 00:27:56,680 --> 00:27:59,159 Speaker 1: needed emergency money, um, and they had it locked up 610 00:27:59,160 --> 00:28:01,000 Speaker 1: in an individual stock, they would have had to sell 611 00:28:01,520 --> 00:28:04,119 Speaker 1: right at the worst possible time. And we don't want 612 00:28:04,160 --> 00:28:06,000 Speaker 1: you to be in that position. So that is why 613 00:28:06,080 --> 00:28:10,800 Speaker 1: we never recommend investing your emergency fund savings money, right that. 614 00:28:10,800 --> 00:28:13,600 Speaker 1: That's money you want to have a liquid and accessible 615 00:28:13,680 --> 00:28:16,000 Speaker 1: so that you won't get hosed if you found yourself 616 00:28:16,040 --> 00:28:18,360 Speaker 1: in a position like that. And again, there's nothing wrong 617 00:28:18,400 --> 00:28:21,600 Speaker 1: with coke. This applies to even owning something as general 618 00:28:21,640 --> 00:28:23,800 Speaker 1: as an SMP five hundred fund or a total stock 619 00:28:23,800 --> 00:28:26,520 Speaker 1: market fund. Looking back, if you would have put your 620 00:28:26,520 --> 00:28:29,600 Speaker 1: emergency fund in SMP during the summer of two thousand, 621 00:28:29,840 --> 00:28:32,760 Speaker 1: you would have seen losses of by the summer of 622 00:28:32,800 --> 00:28:34,800 Speaker 1: two thousand two. Right. It's the same thing with the 623 00:28:34,880 --> 00:28:37,879 Speaker 1: Great Recession. Had you put your emergency fund in the 624 00:28:37,920 --> 00:28:40,760 Speaker 1: SPIRE again in the summer of two thousand seven, you 625 00:28:40,800 --> 00:28:44,800 Speaker 1: would have realized losses of over If you pull that 626 00:28:44,840 --> 00:28:47,480 Speaker 1: money out in March of two nine. Right. The point 627 00:28:47,560 --> 00:28:50,640 Speaker 1: of having your emergency fund in savings is so that 628 00:28:50,680 --> 00:28:52,680 Speaker 1: you can count on that money being there when you 629 00:28:52,760 --> 00:28:55,720 Speaker 1: need it. So investing savings that you need on hand 630 00:28:56,120 --> 00:28:58,520 Speaker 1: if the crap were to hit the pan, uh, that 631 00:28:58,720 --> 00:29:01,160 Speaker 1: is something you want to have pointing exactly. And you know, 632 00:29:01,160 --> 00:29:02,720 Speaker 1: maybe some of this some of the problem here, it 633 00:29:02,800 --> 00:29:05,280 Speaker 1: might come down to the broad term of savings, Jason, 634 00:29:05,800 --> 00:29:07,600 Speaker 1: because you know, you can have money and savings that 635 00:29:07,640 --> 00:29:11,160 Speaker 1: you want on hand for immediate emergencies, or you might 636 00:29:11,200 --> 00:29:13,520 Speaker 1: have money in your savings for plans that are just 637 00:29:13,560 --> 00:29:16,520 Speaker 1: three years out. There's a big difference between an emergency 638 00:29:16,560 --> 00:29:18,800 Speaker 1: fund and money that you're saving and you know, saving 639 00:29:18,880 --> 00:29:20,920 Speaker 1: up to put towards a new house, like we talked 640 00:29:20,920 --> 00:29:23,960 Speaker 1: about there with Zoe and so again, in this case, 641 00:29:24,160 --> 00:29:26,440 Speaker 1: it's less about the term savings and more that money 642 00:29:26,440 --> 00:29:28,920 Speaker 1: actually is, and it's more about your time frame and 643 00:29:28,920 --> 00:29:31,840 Speaker 1: what you plan on doing with that money. You always 644 00:29:31,880 --> 00:29:34,440 Speaker 1: want to make sure you have liquid cash to handle 645 00:29:34,440 --> 00:29:36,880 Speaker 1: any bumps in the road, but beyond that, if you're 646 00:29:36,880 --> 00:29:40,440 Speaker 1: saving towards something bigger on a shorter time frame, so 647 00:29:40,520 --> 00:29:42,360 Speaker 1: let's say something that's two or three years from now. 648 00:29:42,640 --> 00:29:45,400 Speaker 1: That is money that we would be okay with if 649 00:29:45,400 --> 00:29:47,880 Speaker 1: you were to want to start to invest that money. 650 00:29:48,080 --> 00:29:50,080 Speaker 1: So Jason, hopefully we're able to point you in the 651 00:29:50,120 --> 00:29:52,480 Speaker 1: right direction and also hopefully you didn't feel picked on 652 00:29:53,160 --> 00:29:55,520 Speaker 1: because we're I love that you have like you're trying 653 00:29:55,520 --> 00:29:58,680 Speaker 1: to find ways to maximize your returns uh And it 654 00:29:58,760 --> 00:30:00,360 Speaker 1: sounds like you, I mean, you listen to the show. 655 00:30:00,360 --> 00:30:03,320 Speaker 1: I'm guessing you might be in a solid financial position, 656 00:30:03,480 --> 00:30:05,440 Speaker 1: and so I love that you're thinking of different ways 657 00:30:05,720 --> 00:30:08,440 Speaker 1: to maximize the return that you're seeing on your money, 658 00:30:08,560 --> 00:30:10,200 Speaker 1: no doubt. And there are a lot of people that 659 00:30:10,240 --> 00:30:13,520 Speaker 1: are bummed at the rates that they're receiving for savings 660 00:30:13,640 --> 00:30:16,120 Speaker 1: right now, Matt and understandably so it is a tough 661 00:30:16,240 --> 00:30:19,240 Speaker 1: climate to be a saver. But when we're talking about 662 00:30:19,240 --> 00:30:22,040 Speaker 1: short term money like we have over the last two questions, 663 00:30:22,280 --> 00:30:24,880 Speaker 1: there just aren't that many options for people who have 664 00:30:25,000 --> 00:30:27,719 Speaker 1: a short timeline that that don't involve a whole lot 665 00:30:27,720 --> 00:30:29,959 Speaker 1: of risk. And again, you might be, you know, like 666 00:30:30,160 --> 00:30:32,760 Speaker 1: someone who who likes to do base jumping or ride 667 00:30:32,800 --> 00:30:35,760 Speaker 1: the craziest roller coasters that they use, right Like, I 668 00:30:35,760 --> 00:30:38,640 Speaker 1: don't know what your risk tolerance is but you just 669 00:30:38,680 --> 00:30:41,840 Speaker 1: have to understand at least the risky downside that you 670 00:30:41,960 --> 00:30:44,600 Speaker 1: might be embarking on if you're putting money that's intended 671 00:30:44,960 --> 00:30:46,640 Speaker 1: uh to be used in the next year or two 672 00:30:46,920 --> 00:30:49,120 Speaker 1: into something as risky as an individual stock. So once 673 00:30:49,120 --> 00:30:50,800 Speaker 1: you start talking about base jumping, though, then we have 674 00:30:50,840 --> 00:30:52,960 Speaker 1: to start diving into whether or not we're talking about 675 00:30:52,960 --> 00:30:55,760 Speaker 1: perceived risk or actual risk, because there are things that 676 00:30:55,760 --> 00:30:59,160 Speaker 1: we do every day that are actually risky, and there 677 00:30:59,160 --> 00:31:02,440 Speaker 1: are other things base jumping that seem riskier than they 678 00:31:02,480 --> 00:31:04,520 Speaker 1: are in reality. It's really I'd like see some stats 679 00:31:04,560 --> 00:31:06,200 Speaker 1: on base humping. I don't know how risky it is. 680 00:31:06,240 --> 00:31:08,000 Speaker 1: It seems like it is based on think skydiving is 681 00:31:08,000 --> 00:31:10,280 Speaker 1: not as risky as you might think. Okay, all right, 682 00:31:10,320 --> 00:31:13,040 Speaker 1: that's I'm not saying I want to do it. I 683 00:31:13,080 --> 00:31:14,600 Speaker 1: mean literally, at this point in my life, I have 684 00:31:14,760 --> 00:31:17,520 Speaker 1: zero interest in going skydiving. All right, that's something I 685 00:31:17,520 --> 00:31:19,440 Speaker 1: want to do. I've been on a motorized hang glider, 686 00:31:19,480 --> 00:31:22,520 Speaker 1: but I've never done Yeah in Hawaii actually was awesome. 687 00:31:23,000 --> 00:31:25,200 Speaker 1: I've always wanted to do because I saw this guy 688 00:31:25,280 --> 00:31:27,360 Speaker 1: one time when I was in Chattanooga on top of 689 00:31:27,400 --> 00:31:31,440 Speaker 1: Lookout Mountain. He put together his hang glider, non motorized, 690 00:31:31,520 --> 00:31:33,320 Speaker 1: and I saw him just run it just like sound 691 00:31:33,520 --> 00:31:37,160 Speaker 1: together and just take off, and I was like, Okay, 692 00:31:37,200 --> 00:31:39,120 Speaker 1: I want to do that someday, So we'll see if 693 00:31:39,120 --> 00:31:41,719 Speaker 1: I make it. But that's pretty crazy. At least it's 694 00:31:41,800 --> 00:31:43,920 Speaker 1: less risky than I thought it was. But we've got 695 00:31:43,920 --> 00:31:46,440 Speaker 1: actually a couple more questions to get to on this episode, 696 00:31:46,880 --> 00:31:50,320 Speaker 1: including one about a four or three B that's the 697 00:31:50,320 --> 00:31:53,280 Speaker 1: retirement account that most teachers have access to, and we'll 698 00:31:53,280 --> 00:32:05,280 Speaker 1: get to that question and another one right after this break. Alright, 699 00:32:05,280 --> 00:32:06,920 Speaker 1: we're back. Let's not waste any time. Let's get to 700 00:32:06,920 --> 00:32:11,080 Speaker 1: our next question about a credit card mistake. I joined Matt. 701 00:32:11,480 --> 00:32:14,920 Speaker 1: My name is John. I'm from Tucson, Arizona. I inadvertently 702 00:32:15,160 --> 00:32:19,440 Speaker 1: opened credit card with a major airline and realized that 703 00:32:19,840 --> 00:32:23,680 Speaker 1: I opened the wrong credit card and went and opened 704 00:32:23,680 --> 00:32:27,040 Speaker 1: the right credit card. So now I have two credit 705 00:32:27,040 --> 00:32:30,040 Speaker 1: cards with this same airline. I was wondering if I 706 00:32:30,040 --> 00:32:33,920 Speaker 1: could go ahead and uh close out the first credit card, 707 00:32:34,560 --> 00:32:38,000 Speaker 1: and or if I should just keep it and not 708 00:32:38,360 --> 00:32:42,120 Speaker 1: use it. I'm concerned how opening two credit cards so 709 00:32:42,160 --> 00:32:47,400 Speaker 1: close together affects my fincal score, So any advice would 710 00:32:47,400 --> 00:32:50,600 Speaker 1: be great. My facial scores over eight hundred, so it's 711 00:32:50,600 --> 00:32:53,560 Speaker 1: not like, uh, it would be too bad. So anyways, 712 00:32:53,880 --> 00:32:57,040 Speaker 1: thanks for your advice. Oh John, so sorry that happened 713 00:32:57,040 --> 00:32:59,600 Speaker 1: to you. It's a good thing that this is really 714 00:33:00,040 --> 00:33:03,000 Speaker 1: the scheme of things, a pretty minor mess up. It's man, 715 00:33:03,040 --> 00:33:05,840 Speaker 1: I think it's kind of like accidentally spilling water on 716 00:33:05,960 --> 00:33:08,800 Speaker 1: your driveway. It's like, ah, bummer, spill my water. But 717 00:33:08,840 --> 00:33:12,040 Speaker 1: if you spilled let's say, maple syrup on the carpet, 718 00:33:12,080 --> 00:33:14,040 Speaker 1: like a whole bottle of it, that's a much bigger 719 00:33:14,000 --> 00:33:15,840 Speaker 1: play inside of your house. Exactly. Yeah, that's a much 720 00:33:15,840 --> 00:33:19,320 Speaker 1: bigger clean up duty. So fortunately, John, you made more 721 00:33:19,360 --> 00:33:22,000 Speaker 1: of the water on the driveway mistake than the maple 722 00:33:22,040 --> 00:33:23,479 Speaker 1: syrup on the carpet. You got like the bucket full 723 00:33:23,520 --> 00:33:25,120 Speaker 1: of SuDS there with like you're washing the car and 724 00:33:25,120 --> 00:33:26,600 Speaker 1: you're like, oh, I just split a little bit. They 725 00:33:26,640 --> 00:33:29,000 Speaker 1: didn't matter, Like no big deal at all. And so 726 00:33:29,040 --> 00:33:30,200 Speaker 1: what we're saying to you, John, is that you can 727 00:33:30,200 --> 00:33:32,120 Speaker 1: go ahead and close that card if you don't want 728 00:33:32,120 --> 00:33:34,560 Speaker 1: it hanging around, because your credit score it is already 729 00:33:34,560 --> 00:33:36,920 Speaker 1: in tip top shape. And so that small hit that 730 00:33:36,960 --> 00:33:39,320 Speaker 1: you'll take by closing it, it won't actually impact you 731 00:33:39,400 --> 00:33:41,440 Speaker 1: very much, or if it does, it won't impact you 732 00:33:41,520 --> 00:33:45,120 Speaker 1: for very long. Normally we're pretty anti closing a credit card, 733 00:33:45,360 --> 00:33:47,959 Speaker 1: but specifically in your case, and you didn't mention too 734 00:33:48,000 --> 00:33:50,120 Speaker 1: whether or not it has an annual fee, but if 735 00:33:50,160 --> 00:33:51,800 Speaker 1: it does, definitely close it. If you're not going to 736 00:33:51,880 --> 00:33:54,719 Speaker 1: be getting any value from that card. But even outside 737 00:33:54,760 --> 00:33:56,440 Speaker 1: of the fact that it you know, even if it's 738 00:33:56,440 --> 00:33:58,360 Speaker 1: a free card, we think you can go ahead and 739 00:33:58,400 --> 00:34:00,480 Speaker 1: close it, and that would not be something that I 740 00:34:00,480 --> 00:34:03,120 Speaker 1: would sweat. I've actually done this myself job maybe five 741 00:34:03,200 --> 00:34:05,680 Speaker 1: years ago. I opened the wrong card. I was opening 742 00:34:05,680 --> 00:34:08,760 Speaker 1: a business credit card for the photography company, and instead 743 00:34:08,800 --> 00:34:11,120 Speaker 1: of getting the cash version of the card, like the 744 00:34:11,160 --> 00:34:13,759 Speaker 1: cash rewards, I got the miles rewards. I guess the 745 00:34:13,800 --> 00:34:16,040 Speaker 1: links were like right next to each other, and I 746 00:34:16,080 --> 00:34:17,839 Speaker 1: realized it too late. But I'll go ahead and use 747 00:34:17,880 --> 00:34:19,200 Speaker 1: the card here for a little bit. I you know, 748 00:34:19,239 --> 00:34:20,880 Speaker 1: got whatever rewards I was able to get from it. 749 00:34:20,920 --> 00:34:22,680 Speaker 1: But then I went ahead and turn around and close 750 00:34:22,760 --> 00:34:24,880 Speaker 1: that card within a few months. I didn't sweat it, 751 00:34:24,920 --> 00:34:26,959 Speaker 1: and it didn't have much impact on my credit score 752 00:34:27,040 --> 00:34:29,120 Speaker 1: at all. Yeah, it's usually gonna be a short term 753 00:34:29,239 --> 00:34:31,920 Speaker 1: thing for most people. But let's talk about actually closing 754 00:34:31,960 --> 00:34:34,960 Speaker 1: credit cards in general, because sometimes it can have a 755 00:34:35,000 --> 00:34:38,000 Speaker 1: worse effect than that, And so that's why we generally 756 00:34:38,000 --> 00:34:40,160 Speaker 1: sided with the fact that it's often a bad idea. 757 00:34:40,280 --> 00:34:43,080 Speaker 1: Right in john situation, he's gotten pretty much perfect credit 758 00:34:43,440 --> 00:34:46,200 Speaker 1: and with this being like this accidental open, it's a 759 00:34:46,200 --> 00:34:48,120 Speaker 1: brand new card that he's closing, it's just not that 760 00:34:48,200 --> 00:34:50,840 Speaker 1: big of a deal. But closing a credit card is 761 00:34:50,880 --> 00:34:53,359 Speaker 1: a bad idea for most people most of the time. 762 00:34:53,760 --> 00:34:56,000 Speaker 1: And the main reason is that it lowers your credit 763 00:34:56,080 --> 00:34:58,320 Speaker 1: utilization rate. So when we answer this question and we 764 00:34:58,360 --> 00:35:00,160 Speaker 1: tell John to go ahead and close this card, we 765 00:35:00,200 --> 00:35:01,560 Speaker 1: don't want you to go out and then be like, 766 00:35:01,719 --> 00:35:03,320 Speaker 1: I'm just gonna close two of the cards I normally 767 00:35:03,440 --> 00:35:05,600 Speaker 1: use and stick with the the this other one and 768 00:35:06,000 --> 00:35:09,759 Speaker 1: use it for all my spending, right exactly, That's what 769 00:35:09,800 --> 00:35:12,759 Speaker 1: we don't want to be accused of, because counter to intuition, 770 00:35:13,080 --> 00:35:15,800 Speaker 1: it reflects well on you when you have copious amounts 771 00:35:15,840 --> 00:35:18,520 Speaker 1: of debt available to you. And and the main reason 772 00:35:18,640 --> 00:35:22,239 Speaker 1: is because that those high credit lines I want that 773 00:35:22,239 --> 00:35:26,840 Speaker 1: card with, Yeah, exactly, the higher your limits the and 774 00:35:26,920 --> 00:35:30,120 Speaker 1: the less you spend. It improves your credit utilization rate, 775 00:35:30,120 --> 00:35:32,360 Speaker 1: which is one of the top things that the credit 776 00:35:32,400 --> 00:35:35,520 Speaker 1: bureaus are looking at when they're determining your credit score. 777 00:35:35,719 --> 00:35:38,880 Speaker 1: It has a massive impact on that. So, yeah, closing 778 00:35:38,880 --> 00:35:41,640 Speaker 1: a card, especially one that has a large limit, it 779 00:35:41,680 --> 00:35:44,279 Speaker 1: means that you're gonna have less debt available to you, 780 00:35:44,400 --> 00:35:47,800 Speaker 1: So it immediately will take your score down a notch. 781 00:35:48,000 --> 00:35:50,360 Speaker 1: So yeah, for John, it's fine. For a lot of 782 00:35:50,400 --> 00:35:53,160 Speaker 1: other people, it could have an impact on your score 783 00:35:53,160 --> 00:35:55,640 Speaker 1: depending on how long you've had that card and how 784 00:35:55,640 --> 00:35:57,560 Speaker 1: big of a credit line it has, so depend Yeah, 785 00:35:57,560 --> 00:35:59,120 Speaker 1: you mentioned depending on how long you've had that card. 786 00:35:59,160 --> 00:36:00,799 Speaker 1: So let's talk about the link of history as well. 787 00:36:00,880 --> 00:36:02,640 Speaker 1: Because in John's case, this shouldn't be a big deal 788 00:36:02,640 --> 00:36:04,880 Speaker 1: because it sounds like he's been building up a great 789 00:36:04,920 --> 00:36:08,000 Speaker 1: credit score over a long period of time, and so 790 00:36:08,120 --> 00:36:11,040 Speaker 1: closing that accidentally open card it shouldn't hurt him in 791 00:36:11,040 --> 00:36:14,080 Speaker 1: a meaningful way because he already had a killer score 792 00:36:14,360 --> 00:36:18,680 Speaker 1: before getting that newest airline card. But again, so another example, 793 00:36:18,760 --> 00:36:21,080 Speaker 1: let's say that you've got just three credit cards. You're 794 00:36:21,080 --> 00:36:24,319 Speaker 1: thinking about closing the card that you've had opened the longest. Well, 795 00:36:24,560 --> 00:36:27,520 Speaker 1: your length of credit history makes up around of your 796 00:36:27,560 --> 00:36:30,120 Speaker 1: overall credit score. And so for you, if that was 797 00:36:30,160 --> 00:36:32,399 Speaker 1: your case, you know, you've got one card you've had 798 00:36:32,440 --> 00:36:35,000 Speaker 1: for say seven years, and you've got two cards that 799 00:36:35,000 --> 00:36:38,160 Speaker 1: you've had only open for one year. Uh, if you 800 00:36:38,160 --> 00:36:40,600 Speaker 1: close that seven year card, that could lead to a 801 00:36:40,640 --> 00:36:43,600 Speaker 1: substantial hit to your credit score. And so that's just 802 00:36:43,680 --> 00:36:45,640 Speaker 1: what we want you to keep in mind as you're 803 00:36:45,640 --> 00:36:48,359 Speaker 1: thinking through whether you should or whether you shouldn't close 804 00:36:48,440 --> 00:36:50,640 Speaker 1: that card. There's an article up on the website that 805 00:36:50,680 --> 00:36:53,399 Speaker 1: discusses closing a credit card in more detail, and when 806 00:36:53,400 --> 00:36:55,680 Speaker 1: it makes sense for you to close a credit card, 807 00:36:55,719 --> 00:36:57,520 Speaker 1: when it makes sense for you to keep that thing around. 808 00:36:57,719 --> 00:37:00,080 Speaker 1: And again, very few scenarios where it makes sense to 809 00:37:00,120 --> 00:37:02,319 Speaker 1: close a card, but in John's case, like why not, 810 00:37:02,400 --> 00:37:05,960 Speaker 1: it's not a big deal. It is a minor, minor mistakes. 811 00:37:05,960 --> 00:37:08,040 Speaker 1: So don't ever think of John, close that card, be 812 00:37:08,080 --> 00:37:10,279 Speaker 1: done with it, and move on with your life. But Matt, 813 00:37:10,360 --> 00:37:12,520 Speaker 1: let's get to the next question that we've got. This 814 00:37:12,560 --> 00:37:15,279 Speaker 1: one comes from a listener in New York. She's a 815 00:37:15,320 --> 00:37:18,239 Speaker 1: teacher and she's got questions about how she should go 816 00:37:18,320 --> 00:37:21,040 Speaker 1: about investing. Hey, there, Matt and Joel, this is Emily 817 00:37:21,040 --> 00:37:23,560 Speaker 1: a teacher from New York State. In addition to a 818 00:37:23,560 --> 00:37:25,960 Speaker 1: four or three B account, I recently learned if something 819 00:37:25,960 --> 00:37:27,960 Speaker 1: called a four or fifty seven, which is available for 820 00:37:27,960 --> 00:37:31,360 Speaker 1: state employees. I'm wondering if you could explain the differences 821 00:37:31,400 --> 00:37:33,480 Speaker 1: between the two accounts and how they work to fund 822 00:37:33,520 --> 00:37:38,040 Speaker 1: your retirement. UM. I'm also quite interested in deciding which 823 00:37:38,080 --> 00:37:41,120 Speaker 1: to fund first if I don't necessarily receive any kind 824 00:37:41,120 --> 00:37:44,360 Speaker 1: of a match, but I am working towards a pension someday. 825 00:37:44,400 --> 00:37:48,080 Speaker 1: Thanks guys for all you do. Cheers Emily, Cheers to you. 826 00:37:48,400 --> 00:37:49,920 Speaker 1: Uh and we are so pumped to hear that you 827 00:37:49,960 --> 00:37:52,960 Speaker 1: are interested in investing more of your paycheck. But honestly, 828 00:37:53,000 --> 00:37:54,960 Speaker 1: at the same time, we're a little bummed because these 829 00:37:54,960 --> 00:37:57,040 Speaker 1: accounts can be pretty lame. It's a little bit of 830 00:37:57,080 --> 00:38:01,120 Speaker 1: background here. First, the closest cousin to in four three 831 00:38:01,120 --> 00:38:03,800 Speaker 1: BS is the four one K, and so they actually 832 00:38:03,800 --> 00:38:08,000 Speaker 1: work really similarly with the same contribution limits of nineteen thousand, 833 00:38:08,040 --> 00:38:09,920 Speaker 1: five hundred. If we're talking about cousins, I gotta say 834 00:38:10,040 --> 00:38:11,680 Speaker 1: the four O one K is like the much more 835 00:38:11,680 --> 00:38:15,839 Speaker 1: industrious cousin, who is much more accomplished and generally just 836 00:38:16,280 --> 00:38:18,840 Speaker 1: much better than the other ones. He's like the cousin 837 00:38:18,960 --> 00:38:23,520 Speaker 1: in any Wes Anderson film. Uh. And Fantastic Mr Fox. 838 00:38:23,520 --> 00:38:27,560 Speaker 1: We're talking about Christoff. Yeah, cousin. They came to visit 839 00:38:27,920 --> 00:38:29,799 Speaker 1: and he was like, way better than I. Forget the 840 00:38:29,800 --> 00:38:32,400 Speaker 1: other kid's name in there, but yeah, he's just like 841 00:38:32,440 --> 00:38:35,000 Speaker 1: showing up his cousin at every turn, much more athletic. 842 00:38:35,360 --> 00:38:38,319 Speaker 1: The four O one K is the superior cousin in 843 00:38:38,360 --> 00:38:40,640 Speaker 1: this case. Uh. And the cool thing is, though, is 844 00:38:41,000 --> 00:38:43,840 Speaker 1: that if you have both of these accounts available to you, 845 00:38:43,840 --> 00:38:46,760 Speaker 1: you are allowed to invest in both and so total 846 00:38:47,040 --> 00:38:50,239 Speaker 1: that's thirty eight thousand dollars annually that you could set 847 00:38:50,239 --> 00:38:52,839 Speaker 1: aside for retirement if you can afford to. Uh. And 848 00:38:52,920 --> 00:38:55,600 Speaker 1: that's is definitely some good news. Yes, by the way, 849 00:38:55,680 --> 00:38:57,919 Speaker 1: Fantastic Mr. Fox one of the greatest movies of all times. 850 00:38:57,960 --> 00:38:59,800 Speaker 1: It's really good. But let's get back to the questions. Sadly, 851 00:38:59,880 --> 00:39:03,680 Speaker 1: these plans emily are almost never as good as what 852 00:39:03,760 --> 00:39:06,800 Speaker 1: private sector workers have access to. Hence why we refer 853 00:39:06,920 --> 00:39:09,399 Speaker 1: to the four or three V plans as the much 854 00:39:09,400 --> 00:39:13,000 Speaker 1: inferior cousin. And that's because the fees are sky high. 855 00:39:13,200 --> 00:39:15,360 Speaker 1: There was a study mat that I read and it 856 00:39:15,480 --> 00:39:19,160 Speaker 1: said that teachers are throwing away ten million dollars collectively 857 00:39:20,239 --> 00:39:21,799 Speaker 1: because of these over the top fees. It is so 858 00:39:21,880 --> 00:39:26,440 Speaker 1: much money. Many are paying over two in fund managements 859 00:39:26,680 --> 00:39:29,040 Speaker 1: and funded management fees, which is crazy because I'm like, 860 00:39:29,040 --> 00:39:30,880 Speaker 1: I'm over here splitting hairs as to whether or not 861 00:39:30,960 --> 00:39:33,319 Speaker 1: I should be investing in a fund that charges me 862 00:39:33,400 --> 00:39:35,880 Speaker 1: point zero one five right, or should I go with 863 00:39:35,920 --> 00:39:38,080 Speaker 1: the free version. It's like, oh, is it worth it? 864 00:39:38,160 --> 00:39:41,000 Speaker 1: Should I pay for the the SMP name over that 865 00:39:41,040 --> 00:39:42,960 Speaker 1: fund or get something that's equivalent. Right At that point, 866 00:39:43,000 --> 00:39:45,440 Speaker 1: you're talking pennies and um, we're talking gold bricks in 867 00:39:45,480 --> 00:39:49,920 Speaker 1: this case with Emily's decision. Right. So yeah, many products 868 00:39:49,960 --> 00:39:52,600 Speaker 1: in four or three V plans are basically illegal to 869 00:39:52,680 --> 00:39:55,120 Speaker 1: even be offered in four one K plans because they're 870 00:39:55,160 --> 00:39:58,040 Speaker 1: so awful and the annuity offerings in these plans are 871 00:39:58,160 --> 00:40:01,520 Speaker 1: the most egregious. So it's a travesty, I think. And 872 00:40:01,560 --> 00:40:03,600 Speaker 1: it's still kind of hard for us to believe that 873 00:40:03,719 --> 00:40:06,319 Speaker 1: rip off planes for teachers are still the norm, that 874 00:40:06,360 --> 00:40:07,960 Speaker 1: they're not the exception to the rule, but they are 875 00:40:08,000 --> 00:40:11,200 Speaker 1: the rule. It's no wonder, Matt that less than a 876 00:40:11,280 --> 00:40:15,040 Speaker 1: third of teachers actually contribute to these plans because they're 877 00:40:15,040 --> 00:40:18,879 Speaker 1: basically being hoodwinked and swindled in these plans when when 878 00:40:18,880 --> 00:40:20,759 Speaker 1: they do choose to invest their yeah, they're looking at 879 00:40:20,800 --> 00:40:22,279 Speaker 1: their options and they're like, oh, that kind of looks 880 00:40:22,280 --> 00:40:26,279 Speaker 1: like garbage exactly. Uh, it's family. What should you specifically do? 881 00:40:26,880 --> 00:40:29,560 Speaker 1: Which of these should you invest in first? And the 882 00:40:29,560 --> 00:40:32,759 Speaker 1: answer is probably neither neither one of those seven or 883 00:40:32,800 --> 00:40:35,480 Speaker 1: four three bees. If you're not receiving a match from 884 00:40:35,520 --> 00:40:37,719 Speaker 1: the school, which is what you stated, But if you were, 885 00:40:37,920 --> 00:40:40,160 Speaker 1: you know, then that would completely change the game here. 886 00:40:40,160 --> 00:40:42,200 Speaker 1: It would be a different story. A full match or 887 00:40:42,239 --> 00:40:44,919 Speaker 1: even a match would be more than enough to cover 888 00:40:44,960 --> 00:40:47,600 Speaker 1: those higher fees. So if you were receiving a match, 889 00:40:47,640 --> 00:40:50,080 Speaker 1: then we'd recommend that you contribute enough to at least 890 00:40:50,200 --> 00:40:52,640 Speaker 1: snag that free money. But since that doesn't sound like 891 00:40:52,680 --> 00:40:55,000 Speaker 1: what you've got going on, the fees that are going 892 00:40:55,040 --> 00:40:58,600 Speaker 1: to be associated with these plans are in almost every case, 893 00:40:58,640 --> 00:41:00,920 Speaker 1: they're going to be higher than what you would pay 894 00:41:00,960 --> 00:41:03,960 Speaker 1: if you opted instead to open up your own individual 895 00:41:04,000 --> 00:41:06,799 Speaker 1: retirement account in your own i RA. And so you 896 00:41:06,800 --> 00:41:08,239 Speaker 1: can do that through one of the you know, the 897 00:41:08,280 --> 00:41:12,319 Speaker 1: best low cost companies providers out there like Vanguard Fidelity 898 00:41:12,480 --> 00:41:14,680 Speaker 1: Schwab they also do a good job, and so does 899 00:41:14,800 --> 00:41:17,160 Speaker 1: m one Finance. They've got that slick app true, but 900 00:41:17,400 --> 00:41:19,560 Speaker 1: also Emily made it sound like she's got more money 901 00:41:19,560 --> 00:41:21,879 Speaker 1: than that to invest. She's got more than right, Yeah, 902 00:41:21,920 --> 00:41:23,560 Speaker 1: it sounds like it because she's like, can I contribute 903 00:41:23,560 --> 00:41:25,399 Speaker 1: to both these accounts? And it's like, wow, if you're 904 00:41:25,400 --> 00:41:27,520 Speaker 1: talking about talking away that kind of money, then that's 905 00:41:27,560 --> 00:41:31,000 Speaker 1: another question, right, because if you first max out the 906 00:41:31,040 --> 00:41:33,279 Speaker 1: contributions to that i RA, that you can open up 907 00:41:33,280 --> 00:41:36,360 Speaker 1: on your own. After that, it's worth considering putting some 908 00:41:36,400 --> 00:41:39,320 Speaker 1: of your retirement dollars into one of these other plans 909 00:41:39,320 --> 00:41:41,719 Speaker 1: that you have access to, even if you don't have 910 00:41:41,920 --> 00:41:46,120 Speaker 1: a match, because even if the investment fees are high, 911 00:41:46,480 --> 00:41:49,440 Speaker 1: the tax shelter can make up for its higher fees 912 00:41:49,560 --> 00:41:52,719 Speaker 1: are terrible, but sometimes it just makes sense to hold 913 00:41:52,719 --> 00:41:55,840 Speaker 1: your nose and do your best necessary evil in this case, right. Yeah, 914 00:41:55,920 --> 00:41:57,800 Speaker 1: So here's what you need to look out for. It 915 00:41:57,880 --> 00:42:00,560 Speaker 1: is that four or three b run By Nagy Earns company, 916 00:42:00,600 --> 00:42:03,400 Speaker 1: because most of them are look closely at the expense 917 00:42:03,520 --> 00:42:07,000 Speaker 1: ratios on the funds that they offer and then stick 918 00:42:07,040 --> 00:42:10,040 Speaker 1: to the lowest cost funds which they have, you know, 919 00:42:10,120 --> 00:42:13,279 Speaker 1: in their portfolio. It's likely an SMP five fund or 920 00:42:13,320 --> 00:42:16,200 Speaker 1: a total stock market fund. Those are our favorites anyway. 921 00:42:16,280 --> 00:42:20,360 Speaker 1: But pay special close attention to the fund management fees, 922 00:42:20,719 --> 00:42:22,759 Speaker 1: to that expense ratio, because that's going to tip you 923 00:42:22,800 --> 00:42:26,319 Speaker 1: off as to what funds are worth investing in inside 924 00:42:26,400 --> 00:42:29,439 Speaker 1: of those accounts and which ones are not. That's right, Yeah, 925 00:42:29,440 --> 00:42:31,279 Speaker 1: this is gonna be a case when you yeah, just 926 00:42:31,360 --> 00:42:33,399 Speaker 1: you greet your teeth, you bear it, and you take 927 00:42:33,400 --> 00:42:35,799 Speaker 1: that tax deduction even though those fees are high. That's 928 00:42:35,800 --> 00:42:37,960 Speaker 1: a real benefit that you would be receiving. Uh and 929 00:42:38,000 --> 00:42:40,040 Speaker 1: Emily also, there's a great site that we would recommend 930 00:42:40,040 --> 00:42:42,959 Speaker 1: you check out called four oh three b wise dot 931 00:42:43,040 --> 00:42:46,160 Speaker 1: org that is worth looking at. They advocate on behalf 932 00:42:46,160 --> 00:42:49,120 Speaker 1: of teachers and are fighting for greater transparency and access 933 00:42:49,160 --> 00:42:53,000 Speaker 1: to just better plans for teachers all across the country 934 00:42:53,040 --> 00:42:55,440 Speaker 1: as well. And so, while it's great that you're working 935 00:42:55,440 --> 00:42:58,319 Speaker 1: towards a pension, continuing to invest on your own first 936 00:42:58,360 --> 00:43:00,960 Speaker 1: inside of tax advantage accounts that you have access to 937 00:43:01,040 --> 00:43:04,200 Speaker 1: that will make sure that you aren't completely wholly dependent 938 00:43:04,280 --> 00:43:07,040 Speaker 1: on one source of income in retirement. We love that 939 00:43:07,080 --> 00:43:09,560 Speaker 1: you're thinking through some of these different avenues. Uh, in 940 00:43:09,680 --> 00:43:12,359 Speaker 1: order to save for your future, it is important that 941 00:43:12,400 --> 00:43:14,520 Speaker 1: you do things in the right order because, uh, you know, 942 00:43:14,600 --> 00:43:17,239 Speaker 1: an individual retirement account is going to be slightly better 943 00:43:17,800 --> 00:43:20,080 Speaker 1: if you don't have a match. But then beyond that, yeah, 944 00:43:20,160 --> 00:43:22,880 Speaker 1: it's definitely worth checking out A four, three B or 945 00:43:22,520 --> 00:43:25,400 Speaker 1: at seven and we wish you the best. Joe's go 946 00:43:25,400 --> 00:43:27,240 Speaker 1: ahead and get back to the beer. For this episode, 947 00:43:27,280 --> 00:43:30,400 Speaker 1: you and I we both enjoyed a Master Shredder. And 948 00:43:30,440 --> 00:43:31,880 Speaker 1: I just noticed on the label here that's got a 949 00:43:31,920 --> 00:43:33,960 Speaker 1: little four next to it. So I'm guessing this was 950 00:43:34,040 --> 00:43:36,560 Speaker 1: the fourth iteration or maybe the fourth time that they 951 00:43:36,560 --> 00:43:39,239 Speaker 1: have done this, Spie, No, sir, it's because it's quadruple 952 00:43:39,280 --> 00:43:41,120 Speaker 1: dry hopped. Is that really? Why? Four times? That's what 953 00:43:41,120 --> 00:43:44,480 Speaker 1: it says on the side here, dry hopped I p A. Okay, 954 00:43:44,520 --> 00:43:46,720 Speaker 1: So yes, that's why the four is there. It's basically, 955 00:43:46,880 --> 00:43:49,080 Speaker 1: and I don't think I've ever had a quadruple dry 956 00:43:49,120 --> 00:43:51,799 Speaker 1: hopped I P A before. Basically, Uh, you know, when 957 00:43:51,840 --> 00:43:53,560 Speaker 1: when you've had don't call it a hot Lanta. That's 958 00:43:53,560 --> 00:43:56,720 Speaker 1: a quadruple is it? Okay? So I have because they 959 00:43:56,760 --> 00:43:59,000 Speaker 1: didn't brained it that way. But I remember reading on 960 00:43:59,040 --> 00:44:00,799 Speaker 1: the label and asking one of the brewers like, why 961 00:44:00,800 --> 00:44:02,960 Speaker 1: didn't y'll call it a quadruple dry hop and they're like, 962 00:44:03,080 --> 00:44:07,200 Speaker 1: I don't know what. It feels like an over the 963 00:44:07,239 --> 00:44:09,640 Speaker 1: top thing because double dry hop there's a big deal 964 00:44:09,680 --> 00:44:11,320 Speaker 1: in and of itself, like putting a lot of extra 965 00:44:11,360 --> 00:44:14,000 Speaker 1: hops in at the end of the brewing process. Basically, 966 00:44:14,080 --> 00:44:16,680 Speaker 1: when you dry hop something, you're adding more hot presence, 967 00:44:17,160 --> 00:44:20,239 Speaker 1: You're getting more of the notes in your nose and 968 00:44:20,440 --> 00:44:24,400 Speaker 1: immediately on on your tongue. But when yeah, quadruple dry 969 00:44:24,440 --> 00:44:26,600 Speaker 1: hops seems like it's like over the top and unnecessary 970 00:44:26,800 --> 00:44:28,640 Speaker 1: until you have this beer and you're like, oh no, 971 00:44:28,719 --> 00:44:30,840 Speaker 1: that was necessary so good, that was really good. I 972 00:44:30,880 --> 00:44:33,319 Speaker 1: would say this this uh. It also creates like a 973 00:44:33,320 --> 00:44:35,840 Speaker 1: lot of bite, Matt, this beer. It reminds me of 974 00:44:35,880 --> 00:44:37,920 Speaker 1: like Barks root beer, and I always used to say, like, 975 00:44:38,200 --> 00:44:40,319 Speaker 1: that's the one with bite or whatever. And I feel 976 00:44:40,360 --> 00:44:42,840 Speaker 1: like the hot bite on this one is legit, Like 977 00:44:42,880 --> 00:44:45,399 Speaker 1: it kind of does shred your tongue in a way 978 00:44:45,520 --> 00:44:47,920 Speaker 1: with a bunch of hot flavor. So I feel like 979 00:44:47,960 --> 00:44:51,960 Speaker 1: it's aptly named and the flavors were were awesome. If 980 00:44:52,000 --> 00:44:54,200 Speaker 1: you like hops. If you like the flavor that a 981 00:44:54,320 --> 00:44:58,240 Speaker 1: ton of a ridiculous amount of overhopping can provide, then 982 00:44:58,400 --> 00:45:00,560 Speaker 1: this this is the beer for you. I couldn't agree 983 00:45:00,600 --> 00:45:02,920 Speaker 1: more as far as the flavor profile. This was a 984 00:45:02,960 --> 00:45:06,319 Speaker 1: fantastic dry, hot beer. If you find yourself drawn to 985 00:45:06,400 --> 00:45:08,560 Speaker 1: these hazy I p a s and definitely check out 986 00:45:08,600 --> 00:45:10,799 Speaker 1: some stuff by the Veil. I wanted to mention too 987 00:45:10,800 --> 00:45:13,040 Speaker 1: on the label. It's funny because you say Master Shredd 988 00:45:13,040 --> 00:45:15,880 Speaker 1: and we're talking about Ninja Turtles earlier. But on the label, 989 00:45:16,320 --> 00:45:19,600 Speaker 1: they've kind of got these illustrations, um, and they're kind 990 00:45:19,600 --> 00:45:21,400 Speaker 1: of like rats. Well that's what he was, he was, 991 00:45:21,680 --> 00:45:23,759 Speaker 1: But why they're four? So there's four of them because 992 00:45:23,800 --> 00:45:25,640 Speaker 1: it's done four times, I guess it's a four x beer. 993 00:45:25,760 --> 00:45:27,319 Speaker 1: Come on. But the way that they have it drawn 994 00:45:27,320 --> 00:45:28,640 Speaker 1: on the label that it also kind of makes me 995 00:45:28,680 --> 00:45:30,600 Speaker 1: think of Queen, you know, with like the four heads 996 00:45:30,800 --> 00:45:33,520 Speaker 1: like in Shadow, you know, hard relief with the light 997 00:45:33,520 --> 00:45:35,319 Speaker 1: shine on their faces. I'm talking about I'm too young 998 00:45:35,400 --> 00:45:37,000 Speaker 1: to remember that you're much older than I am. But 999 00:45:37,160 --> 00:45:38,960 Speaker 1: the rapsody, come on, it's not like it's a song 1000 00:45:39,040 --> 00:45:40,480 Speaker 1: that I grew up listening to, but It's just it's 1001 00:45:40,520 --> 00:45:42,200 Speaker 1: kind of one of those classics. Man, Sure he did 1002 00:45:42,239 --> 00:45:46,040 Speaker 1: an old man, please, like I actually grew up listening 1003 00:45:46,040 --> 00:45:49,040 Speaker 1: to Queen. I'm a child of the nineties just like you. Man. 1004 00:45:49,280 --> 00:45:51,680 Speaker 1: But back to the beer, this is fantastic. We recommended 1005 00:45:51,760 --> 00:45:53,840 Speaker 1: these guys are out of Richmond, Virginia, so if you 1006 00:45:53,880 --> 00:45:55,600 Speaker 1: happen to be in that area, you can probably find 1007 00:45:55,600 --> 00:45:59,600 Speaker 1: some of these beers there really tasty. So that's gonna 1008 00:45:59,600 --> 00:46:02,239 Speaker 1: do it for this episode. For folks who want the 1009 00:46:02,239 --> 00:46:04,400 Speaker 1: show notes and links to any of the websites that 1010 00:46:04,440 --> 00:46:07,520 Speaker 1: we mentioned in our responses to the listener questions, you 1011 00:46:07,560 --> 00:46:09,880 Speaker 1: can go to our website at how Tony dot com 1012 00:46:09,920 --> 00:46:11,920 Speaker 1: will list those out there for you. That's right, and 1013 00:46:11,960 --> 00:46:13,520 Speaker 1: as always, we would love to hear from you if 1014 00:46:13,520 --> 00:46:15,279 Speaker 1: you have a question for us. We would love it 1015 00:46:15,320 --> 00:46:17,920 Speaker 1: if you were to record a voice memo on your phone. 1016 00:46:18,000 --> 00:46:20,319 Speaker 1: It's super easy, and then email that over to us 1017 00:46:20,360 --> 00:46:23,040 Speaker 1: at how the Money Pod at gmail dot com. Leave 1018 00:46:23,120 --> 00:46:25,120 Speaker 1: us a review if you haven't subscribed. If you haven't, 1019 00:46:25,120 --> 00:46:28,959 Speaker 1: and until next time, Joel, best Friends Out, best Friends Out,