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Speaker 1: Welcome to Head of Money. I'm Joel, I'm Matt, and

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

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Speaker 2: That is right, it's Monday. We've got listener questions to

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Speaker 2: get to. Including there is one listener and she's asking

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Speaker 2: about the twenty five X rule, the twenty five times

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Speaker 2: your annual expenses rule, whether or not it's something we

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Speaker 2: still like, and in particular the impact of inflation on the.

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Speaker 3: Twenty five X rule. We'll get to that question.

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Speaker 2: Another listener is wondering whether or not she should refy

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Speaker 2: her car loan with an online company. She's come across

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Speaker 2: a couple of them that were offering really competitive rates.

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Speaker 3: We'll get to that.

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Speaker 2: Plus, another listener is wondering if he should finance an ADU,

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Speaker 2: an accessory dwelling unit. He's looking, I'm looking to do

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Speaker 2: some house hacking. By the way, have you noticed the

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Speaker 2: right down the street from us, there's like they're building

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Speaker 2: an adu. It's like a little carriage of.

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Speaker 3: Oh yeah, in the back, I think it's huge. It's

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Speaker 3: a big one.

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Speaker 2: Like initially it looked like it was just going to

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Speaker 2: be a small garage, but I mean two stories, certainly

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Speaker 2: one garage door opening, and then it's a house. It's

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Speaker 2: like a twenty five hundred square foot house they're building.

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Speaker 1: Other building or usually what like five six hundred square

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Speaker 1: feet maybe seven hundred. This one might be even bigger. Ye,

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Speaker 1: I mean, yeah, I'm depending on how much that I

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Speaker 1: think looks awesome. They've dedicated to garage space. I guess, right, yeah, yeah.

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Speaker 2: Just I guess that's something King I've been talking about

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Speaker 2: recently too, because like we're in a four bedroom house

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Speaker 2: and there's six of us, so like we know, like

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Speaker 2: at some point it's not that we need six bedrooms,

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Speaker 2: but five would be great, you know for the girls,

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Speaker 2: a couple of girls to not have to share a room.

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Speaker 2: We're trying to man, we're starting.

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Speaker 3: To wrestle with that. We're trying to figure leaning in

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Speaker 3: that little house on the prairie lifestyle. Man, it's not

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Speaker 3: like as.

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Speaker 2: The kids get more stuff, it's it's a discussion that

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Speaker 2: we're having that's also.

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Speaker 3: Getting older and more independent, want more of their own space.

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Speaker 2: With their own space, they're into different like where are

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Speaker 2: they gonna practice piano? Like the ability for them to

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Speaker 2: do some of their own things doesn't it doesn't always

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Speaker 2: take place in like the public spaces, and I don't

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Speaker 2: know when I saw that. Literally right before we sit

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Speaker 2: down right here to record, I walked past it, and

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Speaker 2: I was like, that thing is nice, just envisioning what

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Speaker 2: we could do if we decided to build something like that.

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Speaker 2: But I got to think that that thing's going to

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Speaker 2: cost whoever, I don't know whoever's building nothing, Like what

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Speaker 2: do you think like one hundred and fifty easily, if

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Speaker 2: not two hundred K to basically build another house. Anyway, Tangent,

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Speaker 2: that's not.

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Speaker 3: What we're talking.

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Speaker 2: We're gonna talk about eightyus later in the episode, but

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Speaker 2: real quick, I wanted to share man that I just dropped.

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Speaker 2: Speaking of the all mixed family spending a lot of money,

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Speaker 2: I just dropped six hundred and fifteen bucks in order

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Speaker 2: to repair the van. It made me think a couple

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Speaker 2: of things. First of all, it may be glad, first

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Speaker 2: of all, that I had the cash on hand to

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Speaker 2: be able to pay for that, the ability to not

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Speaker 2: have to tap into your emergency fund, but to literally

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Speaker 2: draw on the savings bucket where I'm setting like literally

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Speaker 2: we set aside eighty bucks a month to cover this expense.

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Speaker 3: Because these things come up right, not just.

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Speaker 2: Your oil change or tires whenever that happens, but some

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Speaker 2: of this additional work that's going to be required. I

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Speaker 2: got a valve cover gasket plus an adjustment. Sounds like

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Speaker 2: a car part. Evidently it just helps the engine to

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Speaker 2: run smoother, and I will say it's much much quieter,

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Speaker 2: which is nice. But the second thing I wanted to

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Speaker 2: mention too, is that there might be some folks who

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Speaker 2: find themselves in a similar position and they're like, man,

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Speaker 2: that is so much money. Is it even worth it

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Speaker 2: to go ahead and do that? Maybe instead I should

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Speaker 2: just let's go buy a new car. Like, what's a

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Speaker 2: new car payment? Well, it's a lot more than well,

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Speaker 2: I guess it's not a lot more than six hundred

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Speaker 2: and fifty.

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Speaker 3: I looked it up.

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Speaker 2: It's seven hundred and twenty five dollars for a new car.

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Speaker 2: That's the average monthly car payment. That's average monthly payment

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Speaker 2: every single month. And so that is a ton of money.

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Speaker 2: And so resist the urge. I'm just putting this out there,

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Speaker 2: a little psa. Resist the urge to buy a new

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Speaker 2: car when you're facing when you're looking down the barrel

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Speaker 2: of some car maintenance shoes, take care of your car, right, Like,

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Speaker 2: go ahead and go in for that maintenance, because that

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Speaker 2: is what is going to allow you to continue to

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Speaker 2: drive that old car, like literally not even for just years,

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Speaker 2: but even for decades down the road.

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Speaker 3: Yeah.

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Speaker 1: The new to US minivan that we bought this year

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Speaker 1: after we got rear ended and the old minivan got totaled, well,

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Speaker 1: we had two big expenses that happened within the first

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Speaker 1: three four months of ownership.

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Speaker 3: Had to get that AC topped off. Yeah.

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Speaker 1: Well the AC, I forget it was like the basically

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Speaker 1: the compressor needed to be the actual unit.

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Speaker 3: Yeah.

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Speaker 1: So that was like eight hundred some dollars. And the

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Speaker 1: alternator crapped out on the way down to Florida. That

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Speaker 1: was another eight hundred and something dollars fixed, or it's

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Speaker 1: like seven whatever.

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Speaker 3: And I'm like a.

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Speaker 2: Lot of folks are saying, WHOA a lot of money, boys, Yeah,

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Speaker 2: you're dropping on your old crappy van, And it certainly is.

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Speaker 3: It is a lot of money.

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Speaker 1: And some of those things, Man, do I wish the

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Speaker 1: alternator had lasted longer? Sure, of course I do. But

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Speaker 1: these are the kind of things that come with owning

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Speaker 1: an older car, and and it maybe the expenses are harder.

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Speaker 1: I remember actually having a conversation with somebody about this

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Speaker 1: on Twitter now x I guess about kind of. She

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Speaker 1: was like, well, once I bought a new car, it

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Speaker 1: became easier to budget. And I get that it's easier

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Speaker 1: to budget, but it doesn't mean that you're going to

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Speaker 1: save money.

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Speaker 2: It does not mean it's more affordable, because yeah, it's

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Speaker 2: easier because at the beginning you don't have any maintenance sure,

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Speaker 2: like twenty five thousand, So.

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Speaker 1: Really it's just like it's whatever the car payment is

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Speaker 1: that I've taken out. It's that's the monthly expense, and they're.

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Speaker 2: Like, I can then slowly start building up. That doesn't

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Speaker 2: mean it's more affordable.

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Speaker 1: I like predictability, but I would rather save money and

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Speaker 1: have these less predictable expenses come up and just have

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Speaker 1: saved more to be ready for them to be able

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Speaker 1: to handle them.

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Speaker 3: So absolutely I agree.

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Speaker 1: When you see how much car payments are, how much

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Speaker 1: new cars cost, and how much interest rates are on

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Speaker 1: cars as well, which we're actually going to talk about

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Speaker 1: that in just a second with a finance a car.

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Speaker 1: But like you, when you take all those things into consideration,

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Speaker 1: I would say, yeah, keeping that used car Live makes

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Speaker 1: a whole lot of financial sense.

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Speaker 3: Nice.

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Speaker 2: All right, let's go ahead and introduce the beer that

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Speaker 2: you and I are going to enjoy during this episode.

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Speaker 3: This is I guess it's a fest beer. This is

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Speaker 3: by Bold Monk Brewery. I guess what are they? They're

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Speaker 3: like a gastro pub or yeah, what do you call them?

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Speaker 1: Yeah, Emily and I'll go there for date night sometimes

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Speaker 1: because not because of the beer is awesome.

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Speaker 3: The beer is solid.

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Speaker 1: This is actually one of my favorite We'll talk about

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Speaker 1: it later, but yeah, we picked this beer up while

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Speaker 1: we were there on a recent date night. Figure we

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Speaker 1: should have it on the show, so we'll get to

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Speaker 1: our thoughts on this one. Yeah, at the end of

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Speaker 1: the episode.

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Speaker 3: It's a good spot.

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Speaker 2: They had a Flanders Read the last time I went,

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Speaker 2: which is I think we've said this maybe a few

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Speaker 2: weeks ago, underrated that style of beer.

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Speaker 3: I wish more breweries were making Flanders Read hard to find.

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Speaker 3: I love them. Yeah.

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Speaker 1: Right, let's get to the first question that we have

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Speaker 1: for this episode. By the way, if you want to

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Speaker 1: submit a question we'd love to hear from, you, just

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Speaker 1: got to how to money dot com slash ask. Basically,

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Speaker 1: you're just recording a voice memo emailing.

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Speaker 3: It over to us.

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Speaker 1: We will hopefully take yours on the next Ask HTM episode.

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Speaker 1: But Matt, this first question is all about saving for

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Speaker 1: a retirement and following the right rule of thumb.

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Speaker 4: Hi, Matt and Joel, this is Sarah in New Mexico.

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Speaker 4: I've been listening to How to Money for about two

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Speaker 4: years now, and I've learned so much from the two

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Speaker 4: of you.

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Speaker 5: Thank you.

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Speaker 6: My question is.

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Speaker 4: About saving for retirement. I've heard you, guys and others

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Speaker 4: talk about the twenty five times rule, which states that

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Speaker 4: in order to estimate how much money you need to retire,

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Speaker 4: assuming you retire at the normal age in your early

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Speaker 4: to mid sixties, you multiply the annual amount you'll need

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Speaker 4: to live on by twenty five. I'm wondering whether or

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Speaker 4: not this formula takes inflation into account. So, for example,

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Speaker 4: if I expect to need seventy five thousand dollars a

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Speaker 4: year in retirement in today's currency, do I simply multiply

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Speaker 4: seventy five thousand by twenty five or do I need

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Speaker 4: to estimate what seventy five thousand dollars in today's money

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Speaker 4: will be equivalent to by the time I retire in

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Speaker 4: say twenty fifty or ten years into retirement in twenty sixty,

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Speaker 4: if the latter, do you have any recommended calculators or

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Speaker 4: tools for estimating inflation? Thanks for any insight you can

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Speaker 4: offer on this, and thank you for a podcast.

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Speaker 1: Man, it almost sounds like we need to get Albert

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Speaker 1: Einstein involved in this based on all of the things

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Speaker 1: like this could be a complex financial mathematical formula.

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Speaker 2: Kind of do it like beautiful mind style or write

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Speaker 2: it up on the up on the windows exactly. Well,

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Speaker 2: first off, let's explain what the twenty five times or

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Speaker 2: the twenty five X rule is.

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Speaker 3: And first of all, it's more like.

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Speaker 2: A like a helpful guidepost as opposed to a scientific

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Speaker 2: formula that Albert Einstein would be able to come up with.

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Speaker 2: And what makes it powerful is simply put, it's simplicity

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Speaker 2: because it can help you to quickly understand just the

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Speaker 2: ballpark nest egg that you're shooting for. And it specifically

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Speaker 2: relates what you need to save to your expenses instead

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Speaker 2: of your income, which we feel is a more accurate gauge.

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Speaker 2: Some folks are like, okay, well you need to base

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Speaker 2: how much you have in retirement based on how much

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Speaker 2: you're making, and we don't believe that to be true.

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Speaker 3: In our case.

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Speaker 2: It's not really about what you're making, it's about what

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Speaker 2: it is that it actually costs you to live spending. Yeah,

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Speaker 2: what you're spending, Yeah, exactly.

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Speaker 1: It's a much more accurate gauge of what you need

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Speaker 1: to say if the twenty five actual is zeroing in

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Speaker 1: specifically on that. And that's why we think it's so

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Speaker 1: powerful and basically where it comes from. It comes from

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Speaker 1: this something called the Trinity Study, which calculated safe withdrawal

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Speaker 1: rates over the years. It was basically trying to figure

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Speaker 1: out how much you can take out of your portfolio

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Speaker 1: every year when you're no longer working, and then you know,

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Speaker 1: so that you don't run out of money right on

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Speaker 1: a thirty year timeline. I think, Matt, this was done

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Speaker 1: in the eighties when you and I we were probably

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Speaker 1: waddling around in diapers. But this still remains something that

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Speaker 1: people quote, that people look to well.

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Speaker 2: And they updated it a few years ago to take

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Speaker 2: into account just recent changes, and it still holds, still holds.

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Speaker 1: Yeah, And so they found that a four percent withdrawal

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Speaker 1: rate was incredibly safe, right, And in order to stick

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Speaker 1: to that four percent withdrawal rate, you'll need to save

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Speaker 1: up twenty five extra annual expenses. Right, So it makes sense.

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Speaker 1: And some folks they're more conservative or want to be

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Speaker 1: able to spend more in retirement, and some of those

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Speaker 1: folks aim for something like thirty three times their expenses.

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Speaker 1: That's kind of another figure you might see thrown around

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Speaker 1: for people who say I want to.

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Speaker 3: Be fat, fire or whatever.

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Speaker 1: I want more flexibility, more choice, more options. Well, that

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Speaker 1: is something you might see them a number you might

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Speaker 1: see them aiming for. It's really just an individual choice though.

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Speaker 1: But the twenty five X rule is a great rule

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Speaker 1: of thumb TELP. You kind of quickly evaluate your investments,

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Speaker 1: see where you stack up and where you're likely to

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Speaker 1: be once you get closer to that retirement age.

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Speaker 3: That's right.

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Speaker 2: But given it simplicity, which we think is a good

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Speaker 2: thing for what you would want to use us for, right,

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Speaker 2: just again just getting you in the ballpark. That being said,

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Speaker 2: because of its simplicity, it also kind of comes up

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Speaker 2: short when we're talking about specific retirement planning, which obviously

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Speaker 2: comes with so many other factors. For instance, the twenty

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Speaker 2: five X rule it does not take social Security into accounts,

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Speaker 2: or if you are planning to retire earlier beyond that

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Speaker 2: where you're mapping out the sixty five to ninety five timeframe,

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Speaker 2: it's not taking into account other income that you might

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Speaker 2: have in retirement like rental properties. Maybe you are one

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Speaker 2: of the rare breed left that where you're actually guaranteed

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Speaker 2: a pension when you retire. And actually one of the professors,

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Speaker 2: one of the folks who are part of that study

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Speaker 2: who came up with the four percent withdrawal rate.

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Speaker 3: Says that it's actually too conservative.

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Speaker 2: That he was saying that most folks could actually take

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Speaker 2: out something more like a four point eight percent and

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Speaker 2: this is in a like a worst case scenario and

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Speaker 2: still be okay. But then more recently, like morning Star,

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Speaker 2: which is a great resource that we like to often

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Speaker 2: refer to, they say that actually three point eight percent.

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Speaker 1: That's actually the real safe With the under four percent,

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Speaker 1: some people say, ah, no, you take more seamless, but yeah,

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Speaker 1: who should we actually trust? These are like those nerdy discussions,

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Speaker 1: right that would happen on a college campus when you're

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Speaker 1: debating these that these these discussions are really they happen

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Speaker 1: in the nerdier realms of personal plans on sites like

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Speaker 1: morning Star with these pointy headed professors who were talking

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Speaker 1: about the safe withdrawal rates, and it's like, okay, so

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Speaker 1: it's somewhere in between the three point eight and four

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Speaker 1: percent range that you can safely withdraw well how much exactly? Well,

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Speaker 1: I mean that depends on a variety, like on the

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Speaker 1: ways that these things get run, And it's tough to

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Speaker 1: really zero in on perfection, right.

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Speaker 2: And honestly, like you're not going to be able to

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Speaker 2: achieve perfection either because who knows what the future holes,

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Speaker 2: who knows what expenses you're going to be in and Curry,

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Speaker 2: who knows how it does he might even want to

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Speaker 2: change your lifestyle.

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Speaker 1: Who knows how the US economy does over the next

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Speaker 1: twenty or thirty years? Like that's true, Does it does

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Speaker 1: it reflect the last twenty or thirty years? If so,

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Speaker 1: then you know, like you could.

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Speaker 2: Probably we probably are sitting closer to that four point

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Speaker 2: eight right with withdrawal ray, But if it's yeah, like

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Speaker 2: maybe the previous thirty yeah maybe yeah, yeah, maybe three

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Speaker 2: point it's a little bit better of a place to

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Speaker 2: be in.

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Speaker 1: Right, Yeah, So these are all kind of questions that

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Speaker 1: get tossed in there that don't have easy answers. And

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Speaker 1: so let's say maybe you'd be paying off your mortgage

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Speaker 1: right before you retire, you, well, your expenses are going

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Speaker 1: to go down, which means your twenty five X number

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Speaker 1: is is lower than it was while you were saving

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Speaker 1: up for retirement and still have that mortgage in your life.

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Speaker 1: And then let's say you actually get a pretty solid

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Speaker 1: Social Security check, right, and maybe you have a runal property, Well,

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Speaker 1: you don't necessarily need to accrue twenty five extra expenses.

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Speaker 1: Those people being conservative saving up thirty three x, Well,

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Speaker 1: you could be the opposite, right, because you have other

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Speaker 1: sources of income that will provide a lot of your

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Speaker 1: financial support for a lot of years to come. And plus,

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Speaker 1: like match just said, the four percent rule according to

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Speaker 1: you know, one of the guys who helped established it

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Speaker 1: is conservative, right, And so you don't want to count

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Speaker 1: your chickens before they hatch. But I would say checking

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Speaker 1: out SSA dot gov, the Social Security Administration's website that

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Speaker 1: has a really good retirement benefit estimator.

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Speaker 3: Matt. I logged into Mind today just to kind.

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Speaker 1: Of see how much am I likely to get in retirement,

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Speaker 1: and it tells you when you start taking your Social Security.

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Speaker 3: Check what you're likely to get you're gonna share.

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Speaker 1: I think it was like four grand a month, is

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Speaker 1: if I retired at the age of sixty seven, And

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Speaker 1: so being.

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Speaker 2: Like right now, if you were to start, can you

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Speaker 2: start withdrawing on it at the rifle age of thirty eight? No, No,

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Speaker 2: I can't take it that.

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Speaker 1: It's gonna be a while. It's gonna be a few

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Speaker 1: decades before I can tap into that. But then the

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Speaker 1: longer you wait to take Social Security, the mortal be

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Speaker 1: So it shows you that too, well, if you wait

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Speaker 1: till seventy you'll actually get this big of a check.

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Speaker 3: But I'll say too real quick.

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Speaker 2: What's so great about that is you're actually so you

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Speaker 2: literally log into your account and it's looking at how

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Speaker 2: much you've actually paid in. This isn't just a simple calculator.

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Speaker 2: It's actually taking into your work history, your earnings yea,

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Speaker 2: and your.

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Speaker 1: Work history as to how much and it says, hey,

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Speaker 1: here's how much you made last year, here's how much

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Speaker 1: you paid into the system, and so here's how much

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Speaker 1: you're going to get based on your working lifetime. And

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Speaker 1: so the longer you've been working, and the closer you

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Speaker 1: are to retirement, the more you can take those numbers

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Speaker 1: as gospel truth, the more accurate they're going to be. Right, So,

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Speaker 1: if you've been working for two years or twenty four, well,

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Speaker 1: there's not enough information right to really tell you how

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Speaker 1: much you're gonna have in retirement. Mine is somewhat accurate,

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Speaker 1: a lot more accurate than a twenty two to twenty

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Speaker 1: four year old. But someone who's in their late fifties

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Speaker 1: or sixties, it's gonna be pretty actively.

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Speaker 2: Really dialed in. Yeah, yeah, exactly. Yeah, So that's what's

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Speaker 2: great about that resource. We'll link to that in the

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Speaker 2: show notes. But if you're looking for more general calculators,

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Speaker 2: Vanguard they've got a solid retirement calculator that we will

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Speaker 2: link to as well. Actually, Nerdwill they've got one that

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Speaker 2: includes a month distribution amount, and so what you could

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Speaker 2: do then is to subtract the amount that you're likely

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Speaker 2: to receive within so once you start drawing on social

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Speaker 2: Security or other income like that, like Brital home income

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Speaker 2: stuff like that.

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Speaker 3: Exactly.

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Speaker 2: But then Sarah, you also asked about estimating inflation, and

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Speaker 2: so that's kind of one of the I guess the

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Speaker 2: wild card here, and even the super nerds over at

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Speaker 2: the FED, they've been pretty off on that front, right,

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Speaker 2: Like they were pretty late and seeing that inflation wasn't

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Speaker 2: just transitory and that they did in fact need to

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Speaker 2: take action.

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Speaker 1: Although that was like the word of the year, it

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Speaker 1: seemed like, and it was the word of the year

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Speaker 1: that didn't come to pass.

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Speaker 2: But yeah, I like to play Devil's advocate. Depends on

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Speaker 2: what you mean by transitor exactly.

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Speaker 3: What's the meaning?

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Speaker 2: Is just a slight disagreement over the definition of that word,

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Speaker 2: because in the moment, oh my gosh, it felt like

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Speaker 2: inflation wasn't going away and we were seeing rates tick

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Speaker 2: up closer to ten percent. But you zoom out a

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Speaker 2: little bit, it's been you know, a couple of years,

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Speaker 2: and we're a far cry from ten percent.

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Speaker 3: We're is it like something like three percent right now?

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Speaker 3: We're back in normal range.

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Speaker 2: Yeah, and we're definitely getting getting closer. But I would

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Speaker 2: say so first of all, the Trinity study it does

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Speaker 2: take into account inflation, it takes into account increasing withdrawals

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Speaker 2: on that amount. But also I wouldn't worry too much

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Speaker 2: about actually trying to forecast inflation, because even though the

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Speaker 2: FED got it wrong when it came to determining, well,

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Speaker 2: how long is this inflation actually actually going to stick around,

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Speaker 2: they're pretty clear and they've been pretty firm with the

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Speaker 2: target rate of inflation at two percent, and so basically

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Speaker 2: they're taking steps to get us there. And how long

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Speaker 2: that takes I'm not totally sure, but I mean there

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Speaker 2: are still a couple of rate hikes planned for later

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Speaker 2: this year, and so from that standpoint, I personally am

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Speaker 2: not worried about inflation, runaway inflation and just all the

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Speaker 2: negative that's going to come with that.

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Speaker 1: It's just that accurately predicting it is a difficult thing

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Speaker 1: to do. You just have to know that you're taking

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Speaker 1: care of in the scenario where you save up twenty

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Speaker 1: five x that does account for inflation, and so you

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Speaker 1: don't have to worry about like doing some extra mathematical calculations, Well,

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Speaker 1: what if inflation sticks in the five to six percent range,

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Speaker 1: do I need to save up even more? No, not

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Speaker 1: necessarily like that that that you don't need to be

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Speaker 1: thinking that way.

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Speaker 2: I yeah, I personally am not worried about runaway inflation. Honestly,

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Speaker 2: like I would be shocked. If I mean basically, if

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Speaker 2: inflation doesn't come down to closer to two percent by

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Speaker 2: the I mean, we're going.

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Speaker 3: To continue to see these these these rate.

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Speaker 2: Hikes, and they may not nail it exactly. I think

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Speaker 2: it'll continue to oscillate because anytime you have a massive

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Speaker 2: shift to the economy like we saw three years ago,

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Speaker 2: where it's like, okay, let's completely turn off the economy.

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Speaker 2: This is literally something that has never been done before.

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Speaker 2: That all has an impact.

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Speaker 3: Yeah, as finding equilibria, the rate of inflation.

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Speaker 1: Finding equilibrium after kind of all the all the mess

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Speaker 1: and all the like attempts a second then yeah, of

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Speaker 1: getting us back on track, it's yeah, it takes time.

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Speaker 1: I think one last piece of advice for Sarah would

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Speaker 1: just be to say you can always pad a little

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Speaker 1: bit extra, right if that is a concern, but you

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Speaker 1: also might not need to. And I think there's the

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Speaker 1: one year syndrome one more year syndrome, and I don't

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Speaker 1: want Sarah to fall prey to that, being like, well,

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Speaker 1: I need I need thirty three X in addition to

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Speaker 1: social Security, in addition to this other income I have,

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Speaker 1: and I gotta wait till I pay down the mortgage.

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Speaker 1: Then you might find that you've exhausted some of those years,

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Speaker 1: those younger retirement years where you could have really enjoyed yourself,

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Speaker 1: and you kept working because you felt like you needed

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Speaker 1: to hit a number you didn't need to hit. So exactly,

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Speaker 1: Striking net balance is always hard to find, and it's

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Speaker 1: tough to start drawing down on your portfolio, and it's

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Speaker 1: tough to kind of you know at the same time

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Speaker 1: you're drawing down that your portfolio stop making income. But

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Speaker 1: at some point you got to be confident in knowing

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Speaker 1: what the numbers have proved over the decades that the

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Speaker 1: reality still holds. And I think you can feel comfortable

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Speaker 1: knowing that that's the case. Having twenty five X is

441
00:18:34,760 --> 00:18:36,480
Speaker 1: still a really good rule of thumb that's going to

442
00:18:36,520 --> 00:18:37,399
Speaker 1: make sense for most people.

443
00:18:37,520 --> 00:18:37,879
Speaker 3: Totally.

444
00:18:37,960 --> 00:18:38,160
Speaker 7: Yeah.

445
00:18:38,160 --> 00:18:42,440
Speaker 2: And plus you can't count on your health lasting forever, right,

446
00:18:42,480 --> 00:18:44,399
Speaker 2: Like you said, like being able to take advantage of

447
00:18:44,400 --> 00:18:47,400
Speaker 2: from those earlier years of retirement, I think are it's

448
00:18:47,440 --> 00:18:50,840
Speaker 2: incredibly underrated in my opinion, but definitely something we want

449
00:18:50,840 --> 00:18:52,760
Speaker 2: you to consider, Sarah. We hope that gets you pointed

450
00:18:52,800 --> 00:18:53,480
Speaker 2: in the right direction.

451
00:18:53,520 --> 00:18:54,640
Speaker 3: And Joel, one of the ways.

452
00:18:54,440 --> 00:18:57,440
Speaker 2: That you can invest more for the future is by

453
00:18:57,520 --> 00:18:58,439
Speaker 2: doing a little thing.

454
00:18:58,320 --> 00:18:59,320
Speaker 3: Called house hacking.

455
00:18:59,480 --> 00:19:02,320
Speaker 2: We'll get to that question about the ADU, the accessory

456
00:19:02,440 --> 00:19:04,040
Speaker 2: dwelling unit right after this.

457
00:19:13,680 --> 00:19:15,360
Speaker 1: All right, now, we got more money questions to get

458
00:19:15,400 --> 00:19:17,439
Speaker 1: to on this episode. We're going to talk about building

459
00:19:17,480 --> 00:19:20,679
Speaker 1: an ADU to bring in some extra income. And it

460
00:19:20,720 --> 00:19:22,359
Speaker 1: sounds like this listener is gonna be able to do

461
00:19:22,400 --> 00:19:23,920
Speaker 1: it on the cheap. I think he's gonna be able

462
00:19:23,960 --> 00:19:26,239
Speaker 1: to do this one really well. But we'll get to that.

463
00:19:26,280 --> 00:19:28,160
Speaker 1: But first, Matt, let's get to a question about how

464
00:19:28,160 --> 00:19:30,800
Speaker 1: to make a car loan less egregious.

465
00:19:31,080 --> 00:19:34,120
Speaker 6: Hi, this is Deanna from Youngstown, Ohio. I'm wondering if

466
00:19:34,119 --> 00:19:37,560
Speaker 6: you've had any experience or knowledge of refinancing an auto

467
00:19:37,560 --> 00:19:41,959
Speaker 6: loan with rate Genius or auto Pay, both recommended on

468
00:19:42,040 --> 00:19:45,879
Speaker 6: credit Karma. I have a six point one percent rate

469
00:19:46,320 --> 00:19:49,359
Speaker 6: of interest at this point on my car, and I

470
00:19:49,400 --> 00:19:52,679
Speaker 6: have an eight hundred plus credit score. It says that

471
00:19:52,760 --> 00:19:55,359
Speaker 6: I can be approved for three point five percent. I'd

472
00:19:55,400 --> 00:19:58,359
Speaker 6: like to know what you think in your experiences with

473
00:19:58,400 --> 00:19:58,919
Speaker 6: this company.

474
00:19:58,960 --> 00:20:01,920
Speaker 2: Thinks right, Deanna, Thank you for that question, and let's

475
00:20:01,920 --> 00:20:05,840
Speaker 2: go ahead and get to it. You are asking, well, specifically,

476
00:20:05,880 --> 00:20:08,600
Speaker 2: if if either of us have experience when it comes

477
00:20:08,640 --> 00:20:13,040
Speaker 2: to refinancing an auto loan, and specifically with those two

478
00:20:13,080 --> 00:20:16,040
Speaker 2: companies that you mentioned. And I'm proud to say that

479
00:20:16,160 --> 00:20:18,920
Speaker 2: neither of us have not trying to brag here or anything,

480
00:20:19,359 --> 00:20:23,000
Speaker 2: but we really don't like car loans. And the more

481
00:20:23,040 --> 00:20:25,879
Speaker 2: often that you can save up and pay cash for

482
00:20:26,280 --> 00:20:29,000
Speaker 2: your ride as opposed to financing it, the wealthier you're

483
00:20:29,000 --> 00:20:31,080
Speaker 2: going to be in the long run. And that's not

484
00:20:31,160 --> 00:20:32,800
Speaker 2: just because of the fact that you're not paying any

485
00:20:32,800 --> 00:20:35,199
Speaker 2: interest to the banks right because you paid cash for

486
00:20:35,240 --> 00:20:37,159
Speaker 2: the car, but it's also due to the fact that

487
00:20:37,240 --> 00:20:41,199
Speaker 2: there is a behavioral shift that takes place when you

488
00:20:41,240 --> 00:20:43,720
Speaker 2: pay with cash right when you're financing. It's it's I

489
00:20:43,720 --> 00:20:46,280
Speaker 2: think it can be easy to think, well, how much

490
00:20:46,280 --> 00:20:49,680
Speaker 2: can I afford to pay a month, But when you're

491
00:20:49,720 --> 00:20:52,360
Speaker 2: cutting a massive check or you know, or you're transferring

492
00:20:52,359 --> 00:20:54,879
Speaker 2: thousands of dollars over, it's a little more painful. And

493
00:20:54,920 --> 00:20:57,159
Speaker 2: this is this is a good pain, Joel. This is

494
00:20:57,240 --> 00:20:59,639
Speaker 2: like the feeling the burn after the workout. This is

495
00:20:59,640 --> 00:21:01,960
Speaker 2: not the oh, I tweaked my back kind of pain.

496
00:21:02,000 --> 00:21:04,720
Speaker 1: But like the good sort like you're feeling today. Yeah, no,

497
00:21:04,760 --> 00:21:06,720
Speaker 1: you're right, and I think I did something tho more. Yeah, good,

498
00:21:06,720 --> 00:21:08,480
Speaker 1: pain is what we want people to feel. There should

499
00:21:08,520 --> 00:21:11,680
Speaker 1: be some friction which causes you to change course or

500
00:21:11,760 --> 00:21:12,560
Speaker 1: to think twice.

501
00:21:12,920 --> 00:21:14,240
Speaker 3: Ask yourself a question exactly.

502
00:21:14,320 --> 00:21:17,080
Speaker 2: Yeah, it should push you to ask yourself like how

503
00:21:17,160 --> 00:21:19,240
Speaker 2: much do I need to pay for a car? Like

504
00:21:19,280 --> 00:21:23,840
Speaker 2: how little could I get away with paying? Where this car?

505
00:21:23,960 --> 00:21:27,199
Speaker 2: This automobile? Whatever, We'll get the job done. So Deanna,

506
00:21:27,320 --> 00:21:30,040
Speaker 2: just some thoughts on our approach to car buying before

507
00:21:30,040 --> 00:21:32,520
Speaker 2: we talk to your question. If it wasn't made clear enough.

508
00:21:32,800 --> 00:21:35,760
Speaker 2: We're talking about car repairs at the top of the episode.

509
00:21:35,800 --> 00:21:39,000
Speaker 2: But I will say, great job getting out there seeing

510
00:21:39,119 --> 00:21:42,080
Speaker 2: what better rates are being offered. Just the ability to

511
00:21:42,240 --> 00:21:44,560
Speaker 2: take a few steps, yeah, fill us some paperwork and

512
00:21:44,680 --> 00:21:47,119
Speaker 2: to drastically lower what you're paying every single month on

513
00:21:47,160 --> 00:21:47,880
Speaker 2: that car loan that.

514
00:21:47,840 --> 00:21:50,840
Speaker 3: You already have. That is that's awesome. Yeah, that's fantastic.

515
00:21:50,840 --> 00:21:52,560
Speaker 1: I mean I think seeking better terms on debt you've

516
00:21:52,600 --> 00:21:55,680
Speaker 1: already taken on is smart. Right, And this is whether

517
00:21:55,720 --> 00:21:58,359
Speaker 1: you're refinancing a mortgage, which no one's doing now because

518
00:21:58,400 --> 00:22:01,159
Speaker 1: rates are ridiculous, they're so high, or whether it was

519
00:22:01,200 --> 00:22:03,400
Speaker 1: refinancing student loans which no one's doing, of course, because

520
00:22:03,480 --> 00:22:06,879
Speaker 1: rates are so much higher. But if you got maybe

521
00:22:07,000 --> 00:22:08,840
Speaker 1: let's say your credit score wasn't the dumps we took

522
00:22:08,880 --> 00:22:10,480
Speaker 1: out the car loan, it was in the six hundreds,

523
00:22:10,480 --> 00:22:11,760
Speaker 1: and so you ended up paying a higher rate, and

524
00:22:11,800 --> 00:22:14,560
Speaker 1: now you've improved the score. Well, now you can shop

525
00:22:14,600 --> 00:22:18,040
Speaker 1: the market and find a better term, a better rate

526
00:22:18,440 --> 00:22:21,119
Speaker 1: on that auto loan or the same thing, Matt with

527
00:22:21,240 --> 00:22:23,320
Speaker 1: a balanced transfer on a credit card. That can make

528
00:22:23,320 --> 00:22:24,960
Speaker 1: sense for a whole lot of people who have the

529
00:22:25,040 --> 00:22:27,520
Speaker 1: discipline at the same time to say, you know what,

530
00:22:27,560 --> 00:22:29,600
Speaker 1: I'm going to take this eighteen month window in order

531
00:22:29,600 --> 00:22:31,280
Speaker 1: to pay off this credit card debt, and the zero

532
00:22:31,320 --> 00:22:34,920
Speaker 1: percent APR is going to help me pay down the

533
00:22:34,960 --> 00:22:37,680
Speaker 1: principle really quickly so that I don't have credit card

534
00:22:37,720 --> 00:22:40,800
Speaker 1: debt anymore. That is a smart way to use better

535
00:22:40,880 --> 00:22:43,400
Speaker 1: terms on debt totally. And a part of the reason

536
00:22:43,400 --> 00:22:45,159
Speaker 1: that you're able to score such an awesome quote is

537
00:22:45,160 --> 00:22:47,320
Speaker 1: that you've done a killer job with your finances, Dana.

538
00:22:47,400 --> 00:22:49,480
Speaker 1: Like an eight hundred plus credit score, that's a great

539
00:22:49,520 --> 00:22:52,000
Speaker 1: place to be, so good work there. Sounds like you've

540
00:22:52,000 --> 00:22:55,000
Speaker 1: really tended to that. If you're logging into credit card clearly,

541
00:22:55,119 --> 00:22:57,960
Speaker 1: Like you want to know the details, the finer points

542
00:22:57,960 --> 00:22:59,880
Speaker 1: of your credit score, that's a great site to kind

543
00:22:59,880 --> 00:23:02,240
Speaker 1: of check up and see what's going on behind just

544
00:23:02,240 --> 00:23:03,840
Speaker 1: the score so you can figure out how to improve it.

545
00:23:04,359 --> 00:23:07,400
Speaker 1: But you're asking about a couple of specific companies, Rate

546
00:23:07,520 --> 00:23:09,760
Speaker 1: Genius and auto Pay, and as far as we can tell,

547
00:23:09,800 --> 00:23:12,000
Speaker 1: they both seem solid, like both have been in business

548
00:23:12,000 --> 00:23:14,000
Speaker 1: for a number of years. So yeah, neither of them

549
00:23:14,040 --> 00:23:17,440
Speaker 1: are some fly by night startup right where they're likely

550
00:23:17,480 --> 00:23:19,680
Speaker 1: going to be gone tomorrow. They've got solid to great

551
00:23:19,680 --> 00:23:21,080
Speaker 1: reviews on the internet.

552
00:23:21,160 --> 00:23:21,320
Speaker 5: Right.

553
00:23:22,160 --> 00:23:25,399
Speaker 1: In particular, Rate Genius is accredited on the Better Business

554
00:23:25,400 --> 00:23:28,280
Speaker 1: Bureau website. But something to keep in mind, just because

555
00:23:28,320 --> 00:23:30,040
Speaker 1: they dangle a sweet rate out in front of you

556
00:23:30,080 --> 00:23:32,879
Speaker 1: when you initially click over, well, it doesn't necessarily mean

557
00:23:32,920 --> 00:23:35,040
Speaker 1: it's a rate that's going to end up being officially

558
00:23:35,480 --> 00:23:37,640
Speaker 1: offered to you once you fill out the application, right,

559
00:23:37,800 --> 00:23:40,280
Speaker 1: and especially given the rising interest rate environment we're in.

560
00:23:40,560 --> 00:23:43,560
Speaker 1: You might see a headline number on an advertisement or

561
00:23:43,560 --> 00:23:45,600
Speaker 1: on credit karma site and then you get over there

562
00:23:45,640 --> 00:23:48,240
Speaker 1: and they're like, yeah, I mean that's for this kind

563
00:23:48,240 --> 00:23:52,399
Speaker 1: of borrower with this if it's this particular mold you

564
00:23:52,440 --> 00:23:54,679
Speaker 1: meet a couple of the requirements, but actually you know

565
00:23:54,720 --> 00:23:56,840
Speaker 1: your rate's going to look like more more like seven

566
00:23:56,920 --> 00:23:59,359
Speaker 1: percent because you don't meet these other ones. And so

567
00:23:59,560 --> 00:24:02,280
Speaker 1: just be aware you might get frustrated because that might

568
00:24:02,320 --> 00:24:02,760
Speaker 1: be the case.

569
00:24:02,880 --> 00:24:03,080
Speaker 3: Yeah.

570
00:24:03,080 --> 00:24:05,439
Speaker 2: Well, and just given the environment too that we have

571
00:24:05,600 --> 00:24:08,720
Speaker 2: seen when it comes to rising interest rates, in particular

572
00:24:08,720 --> 00:24:11,199
Speaker 2: with car loans, like it may not even necessarily be

573
00:24:11,359 --> 00:24:13,840
Speaker 2: like a bait in the switch, because there's a decent

574
00:24:13,960 --> 00:24:16,520
Speaker 2: chance that rates have just simply increased since you saw

575
00:24:16,600 --> 00:24:19,679
Speaker 2: that whatever thing popped up that you saw. But and

576
00:24:19,720 --> 00:24:22,000
Speaker 2: then again, like joelse, not to mention like they're always

577
00:24:22,040 --> 00:24:25,800
Speaker 2: going to advertise the absolutely lowest rate that someone might

578
00:24:26,119 --> 00:24:29,560
Speaker 2: qualify for, and your credit score is great, but yeah,

579
00:24:29,600 --> 00:24:31,919
Speaker 2: maybe they don't like your debt to income ratio, they

580
00:24:31,920 --> 00:24:33,920
Speaker 2: don't like how much you're making, or maybe they don't

581
00:24:34,000 --> 00:24:35,840
Speaker 2: like how much other credit card debt you might have.

582
00:24:36,440 --> 00:24:39,560
Speaker 2: So with that mind, shopping around is definitely the path

583
00:24:39,560 --> 00:24:41,600
Speaker 2: that we would recommend, and not just with some of

584
00:24:41,640 --> 00:24:44,280
Speaker 2: these online companies that make it easy, but doing it

585
00:24:44,320 --> 00:24:48,000
Speaker 2: in person as well. Hopefully you're already a member at

586
00:24:48,040 --> 00:24:50,840
Speaker 2: your local credit union, but if not, now is a

587
00:24:50,840 --> 00:24:53,600
Speaker 2: great time to join, and they typically are going to

588
00:24:53,640 --> 00:24:58,040
Speaker 2: offer lower interest rates than banks because they're nonprofits, and

589
00:24:58,359 --> 00:25:00,800
Speaker 2: that means that they're literally owned and control by their members.

590
00:25:00,800 --> 00:25:03,840
Speaker 2: They're not seeking to maximize every single dollar. It also

591
00:25:03,880 --> 00:25:06,000
Speaker 2: means they're not going to pay out the highest rates

592
00:25:06,000 --> 00:25:09,240
Speaker 2: when it comes to what they're rewarding on their high

593
00:25:09,240 --> 00:25:12,240
Speaker 2: HEELD savings accounts. But there are fantastic places to go

594
00:25:12,280 --> 00:25:14,360
Speaker 2: when it comes to some of the different financing products

595
00:25:14,359 --> 00:25:15,879
Speaker 2: that you might find yourself in need of.

596
00:25:16,000 --> 00:25:19,080
Speaker 1: Yeah, I think helocks and refinancing a car loan. Credit

597
00:25:19,119 --> 00:25:22,119
Speaker 1: unions are great places for both of those things. So yeah,

598
00:25:22,160 --> 00:25:24,879
Speaker 1: I definitely check that. Check a couple of credit unions

599
00:25:24,880 --> 00:25:26,800
Speaker 1: and you can lot of times they post their rates

600
00:25:26,800 --> 00:25:29,120
Speaker 1: on their website, so you can find the closest three

601
00:25:29,160 --> 00:25:31,160
Speaker 1: even if you're not a member yet. You can join

602
00:25:31,240 --> 00:25:34,160
Speaker 1: by putting twenty bucks in an account usually and then

603
00:25:34,280 --> 00:25:36,720
Speaker 1: guess what you have access to even five even five

604
00:25:36,760 --> 00:25:39,560
Speaker 1: bucks sometimes, Yeah, and then you have access to all

605
00:25:39,640 --> 00:25:42,280
Speaker 1: of the products that they offer, and so yeah, credit

606
00:25:42,359 --> 00:25:44,120
Speaker 1: union is a great place to go for that kind

607
00:25:44,160 --> 00:25:46,320
Speaker 1: of borrowing. And so yeah, while we don't have personal

608
00:25:46,359 --> 00:25:49,679
Speaker 1: experience with the specific companies you mentioned, they seem solid,

609
00:25:49,800 --> 00:25:51,840
Speaker 1: and we love that you're looking to snag yourself at

610
00:25:51,880 --> 00:25:53,639
Speaker 1: better rates where you're gonna be able to reduce the

611
00:25:53,680 --> 00:25:55,480
Speaker 1: amount you'll end up paying over the total life of

612
00:25:55,520 --> 00:25:58,240
Speaker 1: that car loan. I guess one other thing that cautioning against,

613
00:25:58,240 --> 00:26:03,199
Speaker 1: Matt would be to dramatically lengthen the length of that

614
00:26:03,280 --> 00:26:06,840
Speaker 1: car loan, right, So that would caution against Yeah, yeah,

615
00:26:06,920 --> 00:26:08,760
Speaker 1: we'd say get a better rate. But man, if you

616
00:26:08,760 --> 00:26:11,600
Speaker 1: can actually get a better rate and shorten the length

617
00:26:11,600 --> 00:26:13,280
Speaker 1: of that loan too, maybe you got four years left

618
00:26:13,320 --> 00:26:15,480
Speaker 1: on it and you can pay it you get it

619
00:26:15,480 --> 00:26:17,240
Speaker 1: paid off in two and a half, That would be

620
00:26:17,280 --> 00:26:20,600
Speaker 1: ideal because yeah, the less amount of time overall you

621
00:26:20,640 --> 00:26:22,800
Speaker 1: have a car payment in your life, the better, that's

622
00:26:22,800 --> 00:26:25,159
Speaker 1: for sure. But good luck the in a happy refinancing

623
00:26:25,240 --> 00:26:27,360
Speaker 1: and Matt. Let's get to our next question. This one

624
00:26:27,520 --> 00:26:30,240
Speaker 1: is about whether or not to pay cash or to

625
00:26:30,280 --> 00:26:33,200
Speaker 1: take out a loan to build an accessory dwelling unit.

626
00:26:33,520 --> 00:26:37,000
Speaker 7: Hey guys, Israel here from Arizona. I have a question

627
00:26:37,119 --> 00:26:41,760
Speaker 7: regarding construction loans. I have a property that I would

628
00:26:41,800 --> 00:26:45,080
Speaker 7: like to build a guest house on and I'm wondering

629
00:26:45,400 --> 00:26:50,720
Speaker 7: if maybe taking on a construction loan would be beneficial

630
00:26:50,920 --> 00:26:56,480
Speaker 7: in any way. I have the funds to build the

631
00:26:56,520 --> 00:27:00,600
Speaker 7: guest house without the construction loan, and at this point

632
00:27:00,640 --> 00:27:04,000
Speaker 7: I'm thinking I'm budgeting at about one hundred thousand dollars

633
00:27:04,040 --> 00:27:06,720
Speaker 7: to build the guest house. Right now, that money is

634
00:27:06,720 --> 00:27:10,520
Speaker 7: sitting in a high yield savings account that is earning

635
00:27:10,520 --> 00:27:14,920
Speaker 7: me four point two five percent interest rate. And yeah,

636
00:27:14,960 --> 00:27:17,960
Speaker 7: I'm just wondering if maybe holding on to the money

637
00:27:18,240 --> 00:27:22,359
Speaker 7: would be any better in any way, or if taking

638
00:27:22,359 --> 00:27:26,760
Speaker 7: out the construction loan would be of any benefits AnyWho

639
00:27:27,320 --> 00:27:29,760
Speaker 7: love the show and thanks for your thoughts.

640
00:27:29,520 --> 00:27:33,240
Speaker 2: On this, Yeah, is Reel happy to provide our thoughts

641
00:27:33,240 --> 00:27:36,280
Speaker 2: in of course, love the idea of building what you're

642
00:27:36,320 --> 00:27:39,160
Speaker 2: calling a guest house, what we're going to call an ADU,

643
00:27:39,240 --> 00:27:43,280
Speaker 2: because hopefully you are looking to maximize the ROI of

644
00:27:43,320 --> 00:27:44,280
Speaker 2: that actual structure.

645
00:27:44,320 --> 00:27:47,040
Speaker 1: And we've seen a lot of like law changes in

646
00:27:47,680 --> 00:27:50,000
Speaker 1: a bunch of places around the country to make ADUs

647
00:27:50,280 --> 00:27:53,520
Speaker 1: easier to build and to dramatically reduce kind of the

648
00:27:53,560 --> 00:27:56,480
Speaker 1: red tape around like how and where you can build them,

649
00:27:56,680 --> 00:27:58,680
Speaker 1: so they're becoming more and more popular.

650
00:27:58,280 --> 00:27:59,239
Speaker 3: Too, that's right.

651
00:27:59,320 --> 00:28:02,159
Speaker 2: Yeah, And plus so building costs they've certainly gone up

652
00:28:02,200 --> 00:28:05,160
Speaker 2: in recent years, but they haven't risen quite as much

653
00:28:05,200 --> 00:28:09,080
Speaker 2: as the cost of financing and purchasing a home the

654
00:28:09,160 --> 00:28:11,760
Speaker 2: limited supply of housing that's out there. So what that

655
00:28:11,840 --> 00:28:14,199
Speaker 2: means the folks who might want to get into to

656
00:28:14,240 --> 00:28:16,919
Speaker 2: the real estate game might find that their best bet

657
00:28:17,520 --> 00:28:20,080
Speaker 2: is to build an ADU, an accessory dwelling unit instead

658
00:28:20,080 --> 00:28:23,640
Speaker 2: of buying an existing single family or buying an existing

659
00:28:23,760 --> 00:28:26,119
Speaker 2: duplex that might be out there on the market. Granted,

660
00:28:26,119 --> 00:28:29,960
Speaker 2: this is general advice and every market, every individual circumstance

661
00:28:30,160 --> 00:28:33,800
Speaker 2: is different, but literally a disclaimer there. Yeah, but this

662
00:28:33,840 --> 00:28:35,600
Speaker 2: is a strategy that folks are doing. Like, We've got

663
00:28:35,720 --> 00:28:38,680
Speaker 2: a Friendeel Like he's a real estate investor. He's also

664
00:28:38,840 --> 00:28:40,880
Speaker 2: a realtor, but over the past two or three years,

665
00:28:40,960 --> 00:28:43,880
Speaker 2: this has been his approach. He's specifically looking for properties

666
00:28:44,800 --> 00:28:48,000
Speaker 2: that are on corners that allow for him to build

667
00:28:48,160 --> 00:28:50,840
Speaker 2: another an ADU on the back part of that property

668
00:28:51,120 --> 00:28:54,120
Speaker 2: and guess what, it's still accessible via the road, which

669
00:28:54,160 --> 00:28:57,600
Speaker 2: means that people who are renting there aren't disturbing the

670
00:28:57,600 --> 00:29:00,640
Speaker 2: folks who are in the primary structure. It's either the

671
00:29:00,680 --> 00:29:03,280
Speaker 2: corner or he's looking at like properties that.

672
00:29:03,280 --> 00:29:05,000
Speaker 3: Have alley access.

673
00:29:05,560 --> 00:29:08,080
Speaker 2: So like a lot of the older in town neighborhoods,

674
00:29:08,320 --> 00:29:10,480
Speaker 2: like you've got blocks city blocks, and you've got these

675
00:29:10,560 --> 00:29:13,480
Speaker 2: old alleys that are kind of grandfathered in to where

676
00:29:13,560 --> 00:29:17,080
Speaker 2: people could claim here in Atlanta, they're like ten twelve

677
00:29:17,120 --> 00:29:19,080
Speaker 2: feet why that that kind of thing, and so each

678
00:29:19,160 --> 00:29:21,480
Speaker 2: property owner is entitled to half of that. But a

679
00:29:21,480 --> 00:29:24,120
Speaker 2: lot of the blocks, they've just maintained those alleys and

680
00:29:24,160 --> 00:29:27,000
Speaker 2: they're there, and so you can use them if you

681
00:29:27,400 --> 00:29:29,840
Speaker 2: especially if again, if you are closer to the end

682
00:29:29,920 --> 00:29:32,680
Speaker 2: of a block where you run less of a risk

683
00:29:32,800 --> 00:29:36,440
Speaker 2: of that thing getting absorbed maybe by the neighbors to

684
00:29:36,480 --> 00:29:39,040
Speaker 2: where your property would be choked off.

685
00:29:39,200 --> 00:29:42,680
Speaker 1: Actually well yeah, and I I was this close matting

686
00:29:43,000 --> 00:29:45,000
Speaker 1: to doing one of these our corner lot back in

687
00:29:45,040 --> 00:29:47,120
Speaker 1: town too. And this was when the price to build these,

688
00:29:47,160 --> 00:29:48,719
Speaker 1: thinks was a whole lot lower as well. They've come

689
00:29:48,760 --> 00:29:51,520
Speaker 1: out quite a bit Atladu, right, Yeah, So it was

690
00:29:51,560 --> 00:29:53,880
Speaker 1: like literally this company who has like three or four

691
00:29:53,920 --> 00:29:56,400
Speaker 1: designs and you pick one. It's almost like buying a

692
00:29:56,520 --> 00:29:58,720
Speaker 1: house out of a Sears Roebucks catalog that they used

693
00:29:58,720 --> 00:30:00,680
Speaker 1: to have back in the day. Love kind of their

694
00:30:00,720 --> 00:30:03,440
Speaker 1: business model where you're not necessarily hiring an architect to

695
00:30:03,440 --> 00:30:05,400
Speaker 1: make someone of a kind. It's like, do you like

696
00:30:05,440 --> 00:30:06,479
Speaker 1: one of the three models we have?

697
00:30:06,520 --> 00:30:09,360
Speaker 2: If not put it here, yeah, yeah, just build out,

698
00:30:09,560 --> 00:30:10,680
Speaker 2: yes please and stick it right here.

699
00:30:10,720 --> 00:30:10,920
Speaker 3: Yeah.

700
00:30:10,960 --> 00:30:12,600
Speaker 2: So I mean I love that model. There's more and

701
00:30:12,640 --> 00:30:15,240
Speaker 2: more simpler times. Yes, yes, that's what it makes me

702
00:30:15,280 --> 00:30:16,960
Speaker 2: think of where you get to Yeah, pick a house

703
00:30:16,960 --> 00:30:18,959
Speaker 2: out of account. But they were adorable, they were beautiful.

704
00:30:18,960 --> 00:30:20,280
Speaker 1: They would appeal to a whole lot of people, and

705
00:30:20,280 --> 00:30:22,800
Speaker 1: they made sense kind of in the neighborhood where we lived.

706
00:30:23,120 --> 00:30:24,680
Speaker 3: But totally Yeah, you're right.

707
00:30:24,680 --> 00:30:26,280
Speaker 1: I think there's a whole lot of people who would say,

708
00:30:26,640 --> 00:30:28,560
Speaker 1: I feel like it's you're almost doing God's work. If

709
00:30:28,560 --> 00:30:30,680
Speaker 1: you build an ad right now too, you're increasing the

710
00:30:30,680 --> 00:30:32,840
Speaker 1: supply exactly, which is which is going.

711
00:30:32,680 --> 00:30:35,280
Speaker 2: To there's a there's literally a housing shortage right now

712
00:30:35,440 --> 00:30:39,280
Speaker 2: and builders and developers there for one reason or the other,

713
00:30:39,320 --> 00:30:41,120
Speaker 2: they just haven't been willing to take on that risk.

714
00:30:41,160 --> 00:30:43,560
Speaker 1: Over the building years, builders have been building more, but

715
00:30:43,920 --> 00:30:46,160
Speaker 1: we're still we still don't have enough. And by the way,

716
00:30:46,200 --> 00:30:48,000
Speaker 1: Israel said he's had the cash on hand to do this,

717
00:30:48,040 --> 00:30:51,240
Speaker 1: which is amazing, like to say that kind of that

718
00:30:51,320 --> 00:30:54,440
Speaker 1: kind of cash is really incredible. It's quite a feat

719
00:30:54,680 --> 00:30:56,840
Speaker 1: and what a killer way to use it, right, to

720
00:30:57,040 --> 00:30:59,200
Speaker 1: put it into something that is going to increase the

721
00:30:59,240 --> 00:31:01,200
Speaker 1: value of your property, but it's also going to hopefully

722
00:31:01,240 --> 00:31:02,920
Speaker 1: allow you to make more and more money over time.

723
00:31:02,920 --> 00:31:05,400
Speaker 1: And Matt actually one thing he didn't really mention was

724
00:31:05,440 --> 00:31:07,280
Speaker 1: how he was going to use it. He didn't mention it.

725
00:31:07,480 --> 00:31:09,640
Speaker 1: He said, guest house, Yeah, that's yeah. I was like,

726
00:31:09,720 --> 00:31:11,200
Speaker 1: is he going to use it for friends and family

727
00:31:11,520 --> 00:31:13,600
Speaker 1: or is he actually going to use this as an investment?

728
00:31:13,680 --> 00:31:15,800
Speaker 1: And so I think if he wasn't planning on renting

729
00:31:15,840 --> 00:31:18,160
Speaker 1: it out like full time to tenants, he might want

730
00:31:18,160 --> 00:31:20,200
Speaker 1: to consider the both and approach. If he's like that, it's

731
00:31:20,200 --> 00:31:21,720
Speaker 1: kind of for friends and family when they're in town.

732
00:31:22,120 --> 00:31:25,000
Speaker 1: But I don't know, maybe it could also be a

733
00:31:25,040 --> 00:31:28,120
Speaker 1: short term rental that allows him to make money when

734
00:31:28,400 --> 00:31:31,360
Speaker 1: you know, people he doesn't have friends or family visiting,

735
00:31:31,640 --> 00:31:34,280
Speaker 1: and so that that could help him make his savings

736
00:31:34,280 --> 00:31:37,800
Speaker 1: back quickly and just crossed off the calendar. Don't allow

737
00:31:37,840 --> 00:31:39,760
Speaker 1: bookings when you know that some of your people are

738
00:31:39,760 --> 00:31:41,560
Speaker 1: going to be in town using it. And this of

739
00:31:41,600 --> 00:31:43,920
Speaker 1: course does have like part time job characteristics, right, It

740
00:31:43,960 --> 00:31:46,640
Speaker 1: makes it. It makes it. That's something you have to manage.

741
00:31:46,880 --> 00:31:49,000
Speaker 1: But you'd be you'd kind of be dipping your toes

742
00:31:49,000 --> 00:31:52,120
Speaker 1: into the hospitality industry, Israel. But depending on your specific

743
00:31:52,200 --> 00:31:55,280
Speaker 1: location and what that ADU can command per night, it

744
00:31:55,360 --> 00:31:57,800
Speaker 1: might be worth it to you to kind of jump

745
00:31:57,840 --> 00:32:00,840
Speaker 1: through those hoops because it could mean dialing up the

746
00:32:01,120 --> 00:32:02,400
Speaker 1: income dial significantly.

747
00:32:02,480 --> 00:32:04,560
Speaker 2: Yeah, takes some of the pressure off of whether or

748
00:32:04,600 --> 00:32:07,600
Speaker 2: not you should plunk down this much change in order

749
00:32:07,680 --> 00:32:09,080
Speaker 2: to build this thing. If you know that you've got

750
00:32:09,080 --> 00:32:11,520
Speaker 2: a you know the time frame that you know in

751
00:32:11,560 --> 00:32:15,400
Speaker 2: which you'll earn back that money. But while Israel said

752
00:32:15,400 --> 00:32:17,440
Speaker 2: that he's got the cash on hand, he also mentioned

753
00:32:17,440 --> 00:32:20,840
Speaker 2: that he's considering taking out a loan instead. And so

754
00:32:21,000 --> 00:32:24,200
Speaker 2: should he keep his cash intact and instead borrow to

755
00:32:24,200 --> 00:32:26,480
Speaker 2: get that thing built, We'd say probably not.

756
00:32:27,320 --> 00:32:29,760
Speaker 3: And here here's why we don't want you to exhaust

757
00:32:30,000 --> 00:32:31,320
Speaker 3: all of your cash reserves.

758
00:32:31,320 --> 00:32:33,480
Speaker 2: But taking out a loan is going to come with

759
00:32:33,520 --> 00:32:36,280
Speaker 2: some other fees and hassles in addition to the higher

760
00:32:36,400 --> 00:32:39,600
Speaker 2: interest rates that you're going to be forced to deal with.

761
00:32:40,120 --> 00:32:42,720
Speaker 2: And let's say, if you know, maybe you'd already taken

762
00:32:42,760 --> 00:32:45,240
Speaker 2: out a loan that was in the eight percent range.

763
00:32:45,360 --> 00:32:47,400
Speaker 2: Let's say, well, we tell you to use your savings

764
00:32:47,440 --> 00:32:50,400
Speaker 2: to pay that thing off, because that's pretty dang high.

765
00:32:50,680 --> 00:32:53,480
Speaker 2: And even though you're say getting a you know, he

766
00:32:53,480 --> 00:32:55,120
Speaker 2: said a four and a quarter I think returned in

767
00:32:55,400 --> 00:32:58,240
Speaker 2: his high yield savings account, Well, a guaranteed eight percent

768
00:32:58,320 --> 00:33:00,000
Speaker 2: return is going to be even better.

769
00:33:00,640 --> 00:33:02,600
Speaker 3: Right, So avoiding that loan in the first.

770
00:33:02,320 --> 00:33:05,280
Speaker 2: Place, we think, we think makes the most financial sense

771
00:33:05,280 --> 00:33:07,440
Speaker 2: to us. And obviously it depends on your specifics, right,

772
00:33:07,440 --> 00:33:08,760
Speaker 2: Like it depends on the rate that you're able to

773
00:33:08,760 --> 00:33:11,600
Speaker 2: secure if you've got a like say you've got a

774
00:33:11,600 --> 00:33:14,000
Speaker 2: good friend who's a lender, and he's able to say, hey,

775
00:33:14,200 --> 00:33:16,760
Speaker 2: I got this construction loan. Once you complete the construction,

776
00:33:16,840 --> 00:33:18,960
Speaker 2: we roll that into their thirty year mortgage and it

777
00:33:19,000 --> 00:33:21,680
Speaker 2: locks into four percent. Oh oh that would change if

778
00:33:21,720 --> 00:33:23,440
Speaker 2: that was me, I would do that, yes, oh yeah.

779
00:33:23,440 --> 00:33:26,160
Speaker 3: So it depends on the specific because then you remain liquid, but.

780
00:33:26,160 --> 00:33:29,760
Speaker 1: You're taking out exactly a loan at a really reasonable rate, right,

781
00:33:29,800 --> 00:33:32,240
Speaker 1: And so there's and there's even a spread, a positive

782
00:33:32,240 --> 00:33:34,880
Speaker 1: spread for you to and an incentive to keep your

783
00:33:34,920 --> 00:33:38,640
Speaker 1: cash in a hiltav's account, right instead of putting it

784
00:33:38,680 --> 00:33:40,560
Speaker 1: towards paying down the debt. But you're right, I guess

785
00:33:40,960 --> 00:33:44,080
Speaker 1: we're assuming that this is given a typical construction loan

786
00:33:44,120 --> 00:33:47,120
Speaker 1: in the current environment, which is probably somewhere close to

787
00:33:47,160 --> 00:33:49,400
Speaker 1: the eight percent range, with mortgage rates also being in

788
00:33:49,440 --> 00:33:51,680
Speaker 1: the higher in that range as well. Yeah, so if

789
00:33:51,680 --> 00:33:53,240
Speaker 1: we're talking about that rates that we like to see.

790
00:33:53,240 --> 00:33:55,200
Speaker 1: If we're talking about that, then no, boy not. If

791
00:33:55,200 --> 00:33:58,600
Speaker 1: we're talking about a lower rate somewhere in that four

792
00:33:58,640 --> 00:34:01,680
Speaker 1: to five percent range, the liquidity matters, right, and having

793
00:34:01,760 --> 00:34:03,440
Speaker 1: access to that cash, keeping it on hand so you

794
00:34:03,440 --> 00:34:05,720
Speaker 1: can do other things I would take out. I would

795
00:34:05,720 --> 00:34:07,520
Speaker 1: probably take on the debt and be totally fine with it.

796
00:34:07,600 --> 00:34:09,640
Speaker 1: I think one way to split the baby though, if

797
00:34:09,680 --> 00:34:11,240
Speaker 1: you're you know, if you want to go old Testament

798
00:34:11,280 --> 00:34:13,480
Speaker 1: Solomon style, if you're worried you're going to have to

799
00:34:13,520 --> 00:34:17,040
Speaker 1: empty your savings to nothing at all because of this, Well,

800
00:34:17,280 --> 00:34:19,560
Speaker 1: take out a helock on your primary residence. Right, you

801
00:34:19,600 --> 00:34:22,440
Speaker 1: could borrow something like twenty or thirty K instead of

802
00:34:22,480 --> 00:34:25,600
Speaker 1: borrowing a much bigger amount. And those helocks they always

803
00:34:25,640 --> 00:34:28,120
Speaker 1: come with no closing costs, or a lot of them

804
00:34:28,120 --> 00:34:30,040
Speaker 1: come with no closing costs. And so we just suggest

805
00:34:30,080 --> 00:34:31,440
Speaker 1: that you have a goal to pay it off quickly,

806
00:34:31,440 --> 00:34:34,040
Speaker 1: like in twelve to eighteen months with income you know

807
00:34:34,080 --> 00:34:36,799
Speaker 1: that you're getting from potentially using that ADU as a

808
00:34:36,800 --> 00:34:39,959
Speaker 1: short term rental or or just from income from your job.

809
00:34:40,320 --> 00:34:42,759
Speaker 1: But that is maybe a better way to do it

810
00:34:42,800 --> 00:34:45,279
Speaker 1: instead of taking on this construction loan that comes with

811
00:34:45,400 --> 00:34:48,680
Speaker 1: bigger closing costs and more and more annoyance, more hassle, and.

812
00:34:48,640 --> 00:34:50,719
Speaker 2: You're locked into for a longer period of time.

813
00:34:50,840 --> 00:34:53,239
Speaker 1: The helock could be this like perfect little Hey, I

814
00:34:53,280 --> 00:34:55,680
Speaker 1: just need a little bit to make sure that I'm

815
00:34:55,680 --> 00:34:57,920
Speaker 1: not literally taking my savings down to zero, and then

816
00:34:57,920 --> 00:35:00,440
Speaker 1: I've got a little breathing room. And so that might

817
00:35:00,480 --> 00:35:02,600
Speaker 1: be kind of the best way forward.

818
00:35:02,719 --> 00:35:04,920
Speaker 2: Yeah, because I do think a lot of folks they

819
00:35:04,960 --> 00:35:07,279
Speaker 2: might hear you say that and they're thinking, oh, helock man.

820
00:35:07,360 --> 00:35:09,160
Speaker 3: Rates on helocks are crazy high too.

821
00:35:09,320 --> 00:35:11,480
Speaker 2: Yes, But what's key is what you said, which is

822
00:35:11,520 --> 00:35:13,600
Speaker 2: like a plan to really get after it, and when

823
00:35:13,640 --> 00:35:15,120
Speaker 2: you know that the rates are higher and this is

824
00:35:15,160 --> 00:35:18,680
Speaker 2: something that you can eliminate in a year year and

825
00:35:18,719 --> 00:35:21,680
Speaker 2: a half. I like the fire that the light's under you,

826
00:35:21,719 --> 00:35:23,879
Speaker 2: as opposed to saying, all right, let's roll this into

827
00:35:23,880 --> 00:35:25,600
Speaker 2: a thirty year and this is something that you're not

828
00:35:25,680 --> 00:35:27,640
Speaker 2: paying on for for thirty years.

829
00:35:27,719 --> 00:35:29,239
Speaker 3: Yeah, long time, thirty years.

830
00:35:29,239 --> 00:35:32,600
Speaker 2: And so how it is that you mentally approaches really

831
00:35:32,760 --> 00:35:34,799
Speaker 2: matters in this case is real. But you we've got

832
00:35:35,120 --> 00:35:38,120
Speaker 2: another question plus a listener. When that we're gonna get to.

833
00:35:38,160 --> 00:35:50,000
Speaker 3: We'll get some bother of those right after this. All right, man,

834
00:35:49,760 --> 00:35:51,320
Speaker 3: we got more money content.

835
00:35:51,320 --> 00:35:52,840
Speaker 1: We got more stuff we got to cover on this

836
00:35:52,880 --> 00:35:55,880
Speaker 1: episode before we call it ques And we're kind of

837
00:35:55,920 --> 00:35:58,520
Speaker 1: starting something where we pull a question from Facebook occasionally,

838
00:35:58,560 --> 00:36:00,480
Speaker 1: because man, there's this interesting stuff in the how to

839
00:36:00,520 --> 00:36:02,680
Speaker 1: Money Facebook group. If you're not a member of the

840
00:36:02,680 --> 00:36:05,240
Speaker 1: how to Money Facebook group, there's this there's this website

841
00:36:05,280 --> 00:36:06,839
Speaker 1: called facebook dot com that you can log onto.

842
00:36:06,960 --> 00:36:07,640
Speaker 3: Have you heard of it.

843
00:36:07,920 --> 00:36:09,759
Speaker 1: It's been around for a minute, and you can type

844
00:36:09,800 --> 00:36:11,839
Speaker 1: hout to money in the search bar you'll find you'll

845
00:36:11,840 --> 00:36:14,000
Speaker 1: find the group there. There's just people helping each other

846
00:36:14,000 --> 00:36:16,120
Speaker 1: out and it's just a great place to be if

847
00:36:16,120 --> 00:36:19,600
Speaker 1: you're looking for helpful money advice and listener Leslie. She

848
00:36:19,680 --> 00:36:22,120
Speaker 1: posted this week she said, which would you do? She

849
00:36:22,200 --> 00:36:24,720
Speaker 1: posted this question to the Facebook community. She said, sixty

850
00:36:24,719 --> 00:36:27,239
Speaker 1: five hundred dollars into a roth an HSA or a

851
00:36:27,280 --> 00:36:30,040
Speaker 1: traditional four to fifty seven B. She's basically saying, listen,

852
00:36:30,080 --> 00:36:33,359
Speaker 1: if I've got a limited sum of money, which one

853
00:36:33,400 --> 00:36:36,279
Speaker 1: of these three retirement accounts should I prioritize? And Matt,

854
00:36:36,320 --> 00:36:37,919
Speaker 1: I just thought this was interesting that I was like, Wow,

855
00:36:37,920 --> 00:36:40,000
Speaker 1: we should bat this one around because we're kind of

856
00:36:40,000 --> 00:36:42,720
Speaker 1: pitting three retirement accounts against each other in this scenario.

857
00:36:43,040 --> 00:36:46,080
Speaker 3: Three great options, right, well, three good things, which one's

858
00:36:46,120 --> 00:36:47,920
Speaker 3: going to come come out on top in this price fight?

859
00:36:48,000 --> 00:36:49,600
Speaker 2: Right, So it's not like one of them is I'm

860
00:36:49,640 --> 00:36:52,600
Speaker 2: also thinking about dropping sixty five hundzho on. I don't

861
00:36:52,640 --> 00:36:54,080
Speaker 2: know what something dumb you could spend money on?

862
00:36:54,239 --> 00:36:55,480
Speaker 3: Yeah, Like I.

863
00:36:55,520 --> 00:36:57,520
Speaker 2: Rarely even like to say dumb things that people can

864
00:36:57,520 --> 00:36:58,360
Speaker 2: spend money on because that.

865
00:36:58,400 --> 00:36:59,920
Speaker 3: Might be their craft Burea equivalent. Or you don't want

866
00:36:59,960 --> 00:37:00,919
Speaker 3: to I don't want to be a hater.

867
00:37:00,960 --> 00:37:02,360
Speaker 1: And you also don't want to plant an idea in

868
00:37:02,360 --> 00:37:04,640
Speaker 1: their head. That's what it wasn't already there inception wise,

869
00:37:04,680 --> 00:37:06,400
Speaker 1: And they're like, wait, Matt, do you.

870
00:37:06,360 --> 00:37:08,520
Speaker 2: Want to open a hot dog food truck?

871
00:37:08,960 --> 00:37:09,080
Speaker 7: No?

872
00:37:09,120 --> 00:37:09,960
Speaker 3: I was thinking corn dog.

873
00:37:10,000 --> 00:37:11,840
Speaker 1: Oh No, I want a hot tub, that is what

874
00:37:11,920 --> 00:37:13,840
Speaker 1: I want. Maybe I'll eat a hot dog in my

875
00:37:13,880 --> 00:37:14,239
Speaker 1: hot tub.

876
00:37:14,239 --> 00:37:18,200
Speaker 2: Other things that start with hot hot yoga studio? Is

877
00:37:18,200 --> 00:37:20,040
Speaker 2: that something that's a business you want to get into?

878
00:37:20,080 --> 00:37:20,120
Speaker 4: It?

879
00:37:20,360 --> 00:37:22,960
Speaker 1: Got yoga that just doesn't sound sanitary, might get from

880
00:37:23,000 --> 00:37:25,719
Speaker 1: a back, but it sounds adorable, right. But this one

881
00:37:25,719 --> 00:37:28,759
Speaker 1: certainly is not a no brainer, that's for sure. But

882
00:37:29,360 --> 00:37:31,680
Speaker 1: I think there's one mat that we can eliminate first

883
00:37:31,719 --> 00:37:34,560
Speaker 1: and foremost that stands out as not quite as good

884
00:37:34,560 --> 00:37:36,640
Speaker 1: as the others, and that's the traditional four to fifty

885
00:37:36,680 --> 00:37:39,400
Speaker 1: seven b that Leslie mentioned. So those rarely come with

886
00:37:39,440 --> 00:37:42,120
Speaker 1: the match. Plus we're talking about a small tax benefit

887
00:37:42,160 --> 00:37:44,560
Speaker 1: now while accruing a bigger tax build down the road.

888
00:37:45,000 --> 00:37:46,560
Speaker 1: So I think, and I don't know if you agree

889
00:37:46,560 --> 00:37:48,680
Speaker 1: with me, that the four fifty seven would probably be

890
00:37:48,719 --> 00:37:51,120
Speaker 1: the least favorite of the three options that she presented.

891
00:37:51,360 --> 00:37:53,279
Speaker 1: So now there's just two left standing. It's almost like,

892
00:37:53,600 --> 00:37:55,880
Speaker 1: you know, Connor McGregor versus kabib or something like that.

893
00:37:55,920 --> 00:37:58,160
Speaker 1: I don't know, not a big mme guy, But which

894
00:37:58,160 --> 00:38:00,799
Speaker 1: of these beautiful tax advantage offerings win the day? Matt

895
00:38:00,880 --> 00:38:03,160
Speaker 1: in your opinion, do you have.

896
00:38:03,120 --> 00:38:07,440
Speaker 2: A preference, Well, so from a purely tax and numbers

897
00:38:07,520 --> 00:38:10,840
Speaker 2: and loopholes that are available to folks. The HSA is

898
00:38:11,280 --> 00:38:14,319
Speaker 2: certainly superior when you use it properly, right, and that's,

899
00:38:14,360 --> 00:38:17,480
Speaker 2: of course because of the triple tax advantage status. If

900
00:38:17,520 --> 00:38:19,439
Speaker 2: this is this is something that your employer is offering,

901
00:38:19,440 --> 00:38:23,359
Speaker 2: there's technically a quadruple tax advantage because you're not paying

902
00:38:23,400 --> 00:38:25,880
Speaker 2: payroll tax on that. But what that means, though, is

903
00:38:25,880 --> 00:38:28,080
Speaker 2: that there are also more hoops that you've got to

904
00:38:28,120 --> 00:38:30,440
Speaker 2: jump through and then sometimes do the fees that are

905
00:38:30,560 --> 00:38:34,319
Speaker 2: associated with HSA's it can be higher than what you'd

906
00:38:34,320 --> 00:38:37,680
Speaker 2: pay opening up a wrath with fidelity. But so much

907
00:38:37,680 --> 00:38:41,040
Speaker 2: of this comes down to whether you're looking to completely

908
00:38:41,120 --> 00:38:45,240
Speaker 2: optimize and maximize your tax shield and if you're happy

909
00:38:45,400 --> 00:38:49,120
Speaker 2: to take some of those additional steps that in HSA requires.

910
00:38:49,280 --> 00:38:52,000
Speaker 2: So that's on one hand, if so, then all right,

911
00:38:52,160 --> 00:38:54,600
Speaker 2: HSA could be a good way to go. But if

912
00:38:54,600 --> 00:38:57,600
Speaker 2: instead you are preferring simplicity, well it's hard to beat

913
00:38:57,600 --> 00:39:00,320
Speaker 2: a roth ira right, just taking that sixty five hundred

914
00:39:00,320 --> 00:39:04,120
Speaker 2: bucks and I'm assuming that was her default, because that's

915
00:39:04,200 --> 00:39:06,759
Speaker 2: why I'm guessing she started with sixty five I don't know,

916
00:39:07,239 --> 00:39:09,880
Speaker 2: but shoving that into a wrath investing within a total

917
00:39:09,880 --> 00:39:13,080
Speaker 2: stock market or an S and P five hundred fund

918
00:39:13,680 --> 00:39:15,640
Speaker 2: and then just calling it a day, right like that

919
00:39:15,800 --> 00:39:18,840
Speaker 2: is hitting the easy button. Plus you get the advantage

920
00:39:18,880 --> 00:39:21,560
Speaker 2: of with a roth the ability to potentially tap that.

921
00:39:22,040 --> 00:39:24,920
Speaker 2: It's like a backup to your backup emergency fund, right Like,

922
00:39:25,000 --> 00:39:28,799
Speaker 2: those contributions can be withdrawn for any reason, tax and

923
00:39:28,840 --> 00:39:31,280
Speaker 2: penalty free. It's not something we like to talk about

924
00:39:31,280 --> 00:39:33,200
Speaker 2: often because we don't want you to necessarily have to

925
00:39:33,280 --> 00:39:35,440
Speaker 2: draw on that, but hey, if you ever find yourself

926
00:39:35,440 --> 00:39:38,040
Speaker 2: in a tight spot, that money is there. There's forget

927
00:39:38,040 --> 00:39:40,759
Speaker 2: the hot dog corn Dog stay, and there's money in

928
00:39:40,800 --> 00:39:42,839
Speaker 2: the banana stays, and there's money in that roth ira.

929
00:39:43,480 --> 00:39:45,480
Speaker 2: But of course with the HSA, you're gonna have to

930
00:39:45,520 --> 00:39:47,799
Speaker 2: pay more attention to fees. You might even need to

931
00:39:47,840 --> 00:39:50,279
Speaker 2: move the money to another provider to cut down on

932
00:39:50,320 --> 00:39:52,560
Speaker 2: this fees. And then also, like on top of that,

933
00:39:52,640 --> 00:39:55,720
Speaker 2: you're gonna need to document all those medical expenses as well.

934
00:39:55,800 --> 00:39:58,600
Speaker 2: And I'm a pretty organized person, but I don't know,

935
00:39:58,640 --> 00:40:00,400
Speaker 2: I feel like I just talked myself into choosing the

936
00:40:01,520 --> 00:40:04,399
Speaker 2: Rabbi ray And because personally, I've never actually been able

937
00:40:04,440 --> 00:40:07,600
Speaker 2: to take advantage of an HSA, So in my mind,

938
00:40:07,640 --> 00:40:11,319
Speaker 2: it's almost like this unicorn. It's this far off fantastical

939
00:40:11,400 --> 00:40:13,600
Speaker 2: thing that I mean, I know it exists.

940
00:40:13,760 --> 00:40:16,960
Speaker 1: Unicorns don't actually exist, though, man, I know well, and

941
00:40:17,200 --> 00:40:19,040
Speaker 1: I think it's probably a good point is that because

942
00:40:19,040 --> 00:40:21,080
Speaker 1: you've never had access to one, I never have either,

943
00:40:21,160 --> 00:40:22,520
Speaker 1: likely may feel slightly biased to me.

944
00:40:22,520 --> 00:40:23,800
Speaker 3: I know they're great, but it feels addressing.

945
00:40:23,840 --> 00:40:26,000
Speaker 1: It feels like a fiction book that we read about, right,

946
00:40:26,000 --> 00:40:28,480
Speaker 1: and it's it's not actually reality, but for a lot

947
00:40:28,480 --> 00:40:30,160
Speaker 1: of people it is. And actually, my brother in law

948
00:40:30,200 --> 00:40:32,879
Speaker 1: called me just yesterday to ask about his HSA and

949
00:40:33,239 --> 00:40:35,120
Speaker 1: he was telling me, actually, there's a there's a twenty

950
00:40:35,120 --> 00:40:38,520
Speaker 1: five dollars a month fee, but my employer, if I

951
00:40:38,560 --> 00:40:40,680
Speaker 1: open an HSA, they put five hundred bucks in there,

952
00:40:40,800 --> 00:40:44,239
Speaker 1: so it's definitely worth it despite the fee. But at

953
00:40:44,239 --> 00:40:46,360
Speaker 1: the same time, it's annoying, right, And it's annoying some

954
00:40:46,360 --> 00:40:49,480
Speaker 1: people don't get the employer match into an HSA or

955
00:40:49,520 --> 00:40:52,160
Speaker 1: any sort of employer contribution to an HSA, and so

956
00:40:52,280 --> 00:40:54,239
Speaker 1: that fee is something you have to consider because for

957
00:40:54,320 --> 00:40:57,120
Speaker 1: some for some HSA plans, it could be fifty bucks

958
00:40:57,120 --> 00:40:59,319
Speaker 1: a month and that's like hard to overcome, right, when

959
00:41:00,080 --> 00:41:02,440
Speaker 1: that's a that's a pretty big bite. That's a big fee.

960
00:41:03,200 --> 00:41:06,040
Speaker 1: So and I guess another option too is to split

961
00:41:06,040 --> 00:41:09,000
Speaker 1: the money equally between the top two, right, which would

962
00:41:09,000 --> 00:41:09,840
Speaker 1: be a reasonable approach.

963
00:41:09,880 --> 00:41:11,600
Speaker 3: So Joel split in the baby again.

964
00:41:11,719 --> 00:41:13,920
Speaker 1: I'm just like trying to be Solomon over here with

965
00:41:14,520 --> 00:41:17,040
Speaker 1: every piece of financial advice we dish out. Like you

966
00:41:17,480 --> 00:41:19,480
Speaker 1: you can always give yourself a goal of maxing out

967
00:41:19,480 --> 00:41:21,520
Speaker 1: both accounts at some point in the future, but for now,

968
00:41:21,680 --> 00:41:23,759
Speaker 1: maybe funnel thirty two to fifty into your Roth High right,

969
00:41:23,800 --> 00:41:26,560
Speaker 1: and another thirty two fifty into your HSA, and then

970
00:41:26,680 --> 00:41:29,040
Speaker 1: you know, still be conscious of the fees if they're egregious.

971
00:41:29,040 --> 00:41:31,200
Speaker 1: Note that you can transfer funds from that HSA, by

972
00:41:31,239 --> 00:41:34,560
Speaker 1: the way, to another provider once every twelve months, So

973
00:41:34,880 --> 00:41:36,799
Speaker 1: that's one of the things I recommend to my brother

974
00:41:36,800 --> 00:41:38,799
Speaker 1: in law, Like stick the money in there once a year,

975
00:41:38,960 --> 00:41:41,280
Speaker 1: you can, you know, move that money over to Lively

976
00:41:41,360 --> 00:41:44,400
Speaker 1: or Fidelity, who are the two best low cost HSA

977
00:41:44,520 --> 00:41:47,359
Speaker 1: providers out there, and that way you're getting money into

978
00:41:47,400 --> 00:41:50,560
Speaker 1: the HSA. It's the best tax tax structure, right, the

979
00:41:50,560 --> 00:41:52,640
Speaker 1: best way to shield yourself from tax. But at the

980
00:41:52,640 --> 00:41:55,840
Speaker 1: same time you you're avoiding some of the fees, or

981
00:41:55,880 --> 00:41:58,400
Speaker 1: at least you're not getting pummeled and punished by the

982
00:41:58,440 --> 00:42:00,279
Speaker 1: fees for too long exactly.

983
00:42:00,320 --> 00:42:02,640
Speaker 2: And I like to the benefit that comes with trying

984
00:42:02,640 --> 00:42:05,080
Speaker 2: both of these out is that you get to do

985
00:42:05,160 --> 00:42:06,480
Speaker 2: just that you get to try it out. You don't

986
00:42:06,520 --> 00:42:09,160
Speaker 2: have to necessarily commit to one or it's not like

987
00:42:09,200 --> 00:42:11,200
Speaker 2: you like, once you get the ball rolling within one

988
00:42:11,200 --> 00:42:14,200
Speaker 2: of those camps, you have to continue doing that forever.

989
00:42:14,440 --> 00:42:16,799
Speaker 2: And so yeah, the ability to try them both out

990
00:42:16,840 --> 00:42:18,920
Speaker 2: and be like, oh wow, I really like the ease

991
00:42:19,040 --> 00:42:22,719
Speaker 2: of use that comes with a roth IRA or oh

992
00:42:23,040 --> 00:42:27,560
Speaker 2: I'm pretty organized. I like to keep lists of expenses anyway,

993
00:42:27,719 --> 00:42:31,479
Speaker 2: The hs hurt a lot. Yeah, I mean literally that

994
00:42:31,480 --> 00:42:34,239
Speaker 2: that's another check within on the side of going with

995
00:42:34,280 --> 00:42:34,840
Speaker 2: the HSA.

996
00:42:34,960 --> 00:42:37,319
Speaker 1: So I like the ability for you to try both

997
00:42:37,360 --> 00:42:39,800
Speaker 1: of these. If you're like Samuel L. Jackson, mister Glass

998
00:42:39,800 --> 00:42:40,759
Speaker 1: from was It was It?

999
00:42:40,760 --> 00:42:41,000
Speaker 6: In Night?

1000
00:42:41,000 --> 00:42:42,520
Speaker 3: Shyamalan movie Oh with.

1001
00:42:42,440 --> 00:42:46,680
Speaker 2: Bruce Willis, Yeah, yeah, hear that guy, the HSA unbroken,

1002
00:42:46,920 --> 00:42:48,960
Speaker 2: one of the h shattered, unhattered, something like one of

1003
00:42:49,360 --> 00:42:50,520
Speaker 2: but one of those four names.

1004
00:42:51,000 --> 00:42:51,960
Speaker 3: Such a good movie.

1005
00:42:52,120 --> 00:42:53,440
Speaker 1: But yeah, if you're like that guy and you get

1006
00:42:53,480 --> 00:42:55,279
Speaker 1: hurt all the time, the HSA comes even more handy.

1007
00:42:55,400 --> 00:42:57,640
Speaker 3: Yeah, I like that all right. I like it's good.

1008
00:42:57,840 --> 00:43:01,920
Speaker 1: It was like a noir superheroes. Yeah, getting hurt always

1009
00:43:01,920 --> 00:43:03,520
Speaker 1: better than the modern Marble ones.

1010
00:43:03,560 --> 00:43:03,960
Speaker 3: That's srure.

1011
00:43:04,280 --> 00:43:08,000
Speaker 2: They went downhill pretty quickly. Yeah, they neither find new content.

1012
00:43:08,040 --> 00:43:09,480
Speaker 2: That's the problem today, right, I mean you got the

1013
00:43:09,480 --> 00:43:13,880
Speaker 2: writer strikes. There's no new content, which means, honestly, oh snap,

1014
00:43:13,920 --> 00:43:16,040
Speaker 2: what if that means there's gonna be a content revival?

1015
00:43:16,120 --> 00:43:16,279
Speaker 3: Right?

1016
00:43:16,320 --> 00:43:19,840
Speaker 2: Because normally, when you are on a tight truncated timeline

1017
00:43:19,840 --> 00:43:23,200
Speaker 2: and you're just forced to crank out scripts and episodes

1018
00:43:23,239 --> 00:43:26,520
Speaker 2: and whatever else, it means maybe the quality isn't so

1019
00:43:26,600 --> 00:43:29,040
Speaker 2: good by kind of close pinching that off, and you've

1020
00:43:29,040 --> 00:43:31,640
Speaker 2: got all these writers who are no longer able to write.

1021
00:43:32,160 --> 00:43:35,200
Speaker 2: Maybe that means next year, dude, we're gonna be spending

1022
00:43:35,239 --> 00:43:36,760
Speaker 2: so much money on streaming services.

1023
00:43:36,960 --> 00:43:37,879
Speaker 3: It's gonna be so good.

1024
00:43:38,760 --> 00:43:40,640
Speaker 2: I guess that's the downside to the writer strike.

1025
00:43:40,719 --> 00:43:41,760
Speaker 3: But all right, we've.

1026
00:43:41,560 --> 00:43:43,880
Speaker 2: Got one more voice moment to get to. And this

1027
00:43:43,960 --> 00:43:47,520
Speaker 2: isn't a question. Let's hear a listener money win.

1028
00:43:48,400 --> 00:43:52,400
Speaker 5: Hey, Matt and Joe to being san Antonio. So recently

1029
00:43:52,440 --> 00:43:55,719
Speaker 5: I went to a movie theater with the family. And

1030
00:43:55,840 --> 00:43:58,080
Speaker 5: you know how the movie theaters have this little arcade

1031
00:43:58,760 --> 00:44:01,439
Speaker 5: you know, connected to them, so of course the kids

1032
00:44:01,440 --> 00:44:04,800
Speaker 5: they want to go and play some games before the movie. Okay, great,

1033
00:44:04,680 --> 00:44:07,640
Speaker 5: let's do it. We go into the arcade, and some

1034
00:44:07,760 --> 00:44:10,279
Speaker 5: of the games were messed up. They weren't working, you know.

1035
00:44:10,320 --> 00:44:13,200
Speaker 5: I'd scan the card, it wouldn't go through, and then

1036
00:44:13,239 --> 00:44:15,680
Speaker 5: I noticed that it is still taking money out of

1037
00:44:15,760 --> 00:44:18,600
Speaker 5: my card. So I brought it to the attention of

1038
00:44:18,640 --> 00:44:20,920
Speaker 5: one of the attendants and he said, oh, well, the

1039
00:44:20,960 --> 00:44:22,920
Speaker 5: best thing you can do is call the number on

1040
00:44:22,960 --> 00:44:25,640
Speaker 5: the side of the machine and talk to a representative.

1041
00:44:26,200 --> 00:44:27,600
Speaker 5: I feel like a lot of people, you know, just

1042
00:44:27,680 --> 00:44:29,600
Speaker 5: kind of blow this off and say, yeah, it's fine.

1043
00:44:29,640 --> 00:44:32,560
Speaker 5: I'm not gonna do all that, so I didn't. I

1044
00:44:32,600 --> 00:44:36,359
Speaker 5: went ahead and called the number and you know, talk

1045
00:44:36,440 --> 00:44:39,520
Speaker 5: to a representative, told him about the which machines I

1046
00:44:39,560 --> 00:44:41,319
Speaker 5: was having a problem with, and it wasn't giving my

1047
00:44:41,320 --> 00:44:44,879
Speaker 5: money back. And they went ahead and said, okay, they're

1048
00:44:44,880 --> 00:44:47,640
Speaker 5: going to send the technician check out the machines and

1049
00:44:47,719 --> 00:44:50,520
Speaker 5: if they find that the machines were faulty, they would

1050
00:44:50,560 --> 00:44:55,280
Speaker 5: reimburse me. So they have my address, got all my information.

1051
00:44:55,400 --> 00:44:58,040
Speaker 5: And today I went to the mail opened up a

1052
00:44:58,120 --> 00:45:02,080
Speaker 5: letter with the six bucks in it. So, I mean,

1053
00:45:02,239 --> 00:45:04,600
Speaker 5: it's six bucks is six bucks. It might be frugal,

1054
00:45:04,680 --> 00:45:07,160
Speaker 5: might be cheap, but uh, I mean, I think it's

1055
00:45:07,160 --> 00:45:07,920
Speaker 5: a win overall.

1056
00:45:08,320 --> 00:45:11,520
Speaker 2: I'm sure when AV gave them his address, he was like, yeah,

1057
00:45:11,520 --> 00:45:15,160
Speaker 2: this isn't gonna go anywhere. You're not actually gonna gonna

1058
00:45:15,200 --> 00:45:16,040
Speaker 2: refund me anybody.

1059
00:45:16,080 --> 00:45:18,080
Speaker 3: But it turns out they did. Yeah. I love that.

1060
00:45:18,160 --> 00:45:20,480
Speaker 1: I love the story, and I think there's something that

1061
00:45:20,520 --> 00:45:23,359
Speaker 1: we can probably all learn from, like just something a

1062
00:45:23,440 --> 00:45:25,400
Speaker 1: random little thing that AB sends our way like this,

1063
00:45:26,239 --> 00:45:29,040
Speaker 1: And in my mind, that is that every dollar matters, right,

1064
00:45:29,320 --> 00:45:31,879
Speaker 1: and AB is treating is treating these dollars like every

1065
00:45:31,880 --> 00:45:34,879
Speaker 1: dollar mouse matters. It's it's really easy to say it's

1066
00:45:34,880 --> 00:45:38,439
Speaker 1: six bucks, right, like, okay, the bigger thing to handle here,

1067
00:45:38,480 --> 00:45:40,759
Speaker 1: the more the more annoying thing is probably like my

1068
00:45:40,840 --> 00:45:44,520
Speaker 1: kid's disappointment that the machine is broken. But but AB,

1069
00:45:44,719 --> 00:45:46,399
Speaker 1: like you know, went through the trouble, made the phone

1070
00:45:46,440 --> 00:45:49,640
Speaker 1: call and and I think, Matt, it just when you

1071
00:45:49,680 --> 00:45:52,399
Speaker 1: treat your dollars like they all matter, like they all

1072
00:45:52,440 --> 00:45:55,200
Speaker 1: serve a purpose, whether it's fueling your financial independence or

1073
00:45:55,200 --> 00:45:57,160
Speaker 1: whether it's buying stuff that you care more about, Like

1074
00:45:57,880 --> 00:46:02,160
Speaker 1: then like your mindset shit towards your money, Like you

1075
00:46:02,200 --> 00:46:05,000
Speaker 1: start to think about your finances differently. But if you

1076
00:46:05,000 --> 00:46:06,799
Speaker 1: start to say, oh, five bucks here, five bucks there,

1077
00:46:07,000 --> 00:46:09,320
Speaker 1: it doesn't you know, who cares, It doesn't really matter.

1078
00:46:09,880 --> 00:46:12,120
Speaker 1: You are inevitably going to be the person who wakes

1079
00:46:12,200 --> 00:46:14,640
Speaker 1: up and you know, just isn't as far along when

1080
00:46:14,640 --> 00:46:17,680
Speaker 1: it comes to building towards financial independence as somebody like

1081
00:46:17,719 --> 00:46:18,480
Speaker 1: AB is going to be.

1082
00:46:18,760 --> 00:46:21,080
Speaker 2: So I totally know what you're saying, but I guess

1083
00:46:21,120 --> 00:46:23,040
Speaker 2: I'm gonna have to Like, is at a certain point

1084
00:46:23,239 --> 00:46:24,920
Speaker 2: you think, like you have to calculate like what your

1085
00:46:24,960 --> 00:46:26,919
Speaker 2: time is worth. And I'll be honest, I'm not sure

1086
00:46:26,960 --> 00:46:30,160
Speaker 2: if I would have actually made the call to be like, oh,

1087
00:46:30,200 --> 00:46:32,440
Speaker 2: like let's see how much money I actually ended up

1088
00:46:32,520 --> 00:46:35,520
Speaker 2: losing to these stupid broken machines. So in my mind,

1089
00:46:35,560 --> 00:46:37,840
Speaker 2: like it's it's kind of less about the money and

1090
00:46:37,880 --> 00:46:41,480
Speaker 2: maybe more about the fact that you could take the

1091
00:46:41,600 --> 00:46:45,680
Speaker 2: lesson and this this win basically that AB has experienced

1092
00:46:45,800 --> 00:46:49,040
Speaker 2: and then roll that into other areas of life, Like

1093
00:46:49,160 --> 00:46:50,640
Speaker 2: there's a sense that six bucks.

1094
00:46:50,360 --> 00:46:52,480
Speaker 1: Isn't going to change his life. Yeah, but the fact

1095
00:46:52,520 --> 00:46:53,880
Speaker 1: that he treats his money with care.

1096
00:46:53,719 --> 00:46:56,160
Speaker 2: Will yes, and the empowerment I think that that can

1097
00:46:56,200 --> 00:46:59,040
Speaker 2: provide can lead to even bigger wins down the road,

1098
00:46:59,040 --> 00:47:02,239
Speaker 2: which in my mind, like that's why sometimes I do

1099
00:47:02,320 --> 00:47:05,160
Speaker 2: things that where it seems like a waste of time

1100
00:47:05,320 --> 00:47:07,040
Speaker 2: or or people are just like why would you do that? Man,

1101
00:47:07,120 --> 00:47:10,560
Speaker 2: Like you're only saving like literally cents on the dollar

1102
00:47:10,600 --> 00:47:13,520
Speaker 2: here or in AB's case, like six bucks. And by

1103
00:47:13,560 --> 00:47:15,239
Speaker 2: the way, literally he sent us a picture when he

1104
00:47:15,239 --> 00:47:17,240
Speaker 2: sent this voicemail over as well, and it was literally

1105
00:47:17,560 --> 00:47:20,480
Speaker 2: a five dollar bill in a one dollar bill they

1106
00:47:20,520 --> 00:47:23,880
Speaker 2: just mailed to him. I didn't realize that companies mail

1107
00:47:23,960 --> 00:47:27,120
Speaker 2: cash and the male cash, but I guess they figured

1108
00:47:27,160 --> 00:47:30,479
Speaker 2: it was such a small amount that maybe it didn't

1109
00:47:30,480 --> 00:47:32,400
Speaker 2: really matter as much if if it ended up in

1110
00:47:32,400 --> 00:47:35,160
Speaker 2: someone else's hands. But I really like that he got

1111
00:47:35,600 --> 00:47:38,440
Speaker 2: like a taste of the glory of like of winning

1112
00:47:38,960 --> 00:47:41,440
Speaker 2: and the empowerment that you get from that to then

1113
00:47:41,520 --> 00:47:43,640
Speaker 2: say I'm in control of my life, Like there is

1114
00:47:43,680 --> 00:47:45,560
Speaker 2: more that I am in control of, Like I can

1115
00:47:45,560 --> 00:47:48,000
Speaker 2: take life by the horns. There aren't businesses out there

1116
00:47:48,040 --> 00:47:50,719
Speaker 2: that are going to treat me poorly I'm gonna make

1117
00:47:50,760 --> 00:47:54,160
Speaker 2: them a tone. I don't know, I'm getting to religious

1118
00:47:54,200 --> 00:47:56,520
Speaker 2: or whatever. But the ability to stand up for yourself

1119
00:47:56,560 --> 00:47:58,440
Speaker 2: and say, hey, are you going to make this right?

1120
00:47:58,520 --> 00:48:01,080
Speaker 2: This isn't something that I feel like, this isn't how

1121
00:48:01,120 --> 00:48:02,800
Speaker 2: you should have handled this, or this is a product

1122
00:48:02,840 --> 00:48:05,440
Speaker 2: that broke or even just dealing with, like if you're

1123
00:48:05,480 --> 00:48:08,200
Speaker 2: negotiating with somebody, to the ability to I don't know,

1124
00:48:08,680 --> 00:48:10,640
Speaker 2: like draw a line in the sand that could lead

1125
00:48:10,680 --> 00:48:14,000
Speaker 2: to like if you're looking for a promotion, the ability

1126
00:48:14,040 --> 00:48:16,480
Speaker 2: to advocate for yourself is That's what I love about this,

1127
00:48:16,560 --> 00:48:19,120
Speaker 2: and I hope that not only AB is able to

1128
00:48:19,160 --> 00:48:21,320
Speaker 2: take this to and apply it to other areas of

1129
00:48:21,400 --> 00:48:24,520
Speaker 2: life too, but also just all of our listeners. But specifically,

1130
00:48:24,520 --> 00:48:27,560
Speaker 2: when you experience a small win like this yourself, it

1131
00:48:27,600 --> 00:48:29,640
Speaker 2: does something to you. You feel good about it, and

1132
00:48:29,680 --> 00:48:32,480
Speaker 2: you think, all right, I'm optimizing. Okay, it's time to

1133
00:48:32,480 --> 00:48:34,400
Speaker 2: be more efficient. I'm gonna stop wasting money, and like

1134
00:48:34,440 --> 00:48:37,120
Speaker 2: you said, you start seeing other opportunities, yes for all

1135
00:48:37,160 --> 00:48:39,759
Speaker 2: all of a sudden, it's a paradigm shift, and you

1136
00:48:39,800 --> 00:48:43,200
Speaker 2: start seeing any interaction where you're in this current of

1137
00:48:43,320 --> 00:48:45,920
Speaker 2: life of culture. But no, you can you have the

1138
00:48:46,200 --> 00:48:48,759
Speaker 2: ability to like transcend that and you can almost set

1139
00:48:48,960 --> 00:48:52,120
Speaker 2: not make your own rules, but almost do what you

1140
00:48:52,120 --> 00:48:55,640
Speaker 2: want to a certain Outpeck steakhouse, just like ordering the

1141
00:48:55,680 --> 00:48:56,280
Speaker 2: bloomin onion.

1142
00:48:56,280 --> 00:48:58,120
Speaker 1: Well makes me think of recently, I went to a

1143
00:48:58,160 --> 00:49:00,919
Speaker 1: baseball game with one of my best friends and we

1144
00:49:01,040 --> 00:49:04,439
Speaker 1: parked over a mile away and we walked. And it's

1145
00:49:04,480 --> 00:49:07,640
Speaker 1: not because I don't have fifteen dollars to spare unparking,

1146
00:49:07,840 --> 00:49:09,880
Speaker 1: but it's because I don't like my money going to

1147
00:49:10,080 --> 00:49:13,520
Speaker 1: pay for a parking lot. Plus we had this lovely stroll,

1148
00:49:13,719 --> 00:49:15,839
Speaker 1: So I don't know, there's a good thing. Yeah, there's

1149
00:49:15,920 --> 00:49:17,839
Speaker 1: all of these ways in which we can test our

1150
00:49:17,880 --> 00:49:20,200
Speaker 1: preconceived notions. We can test the assumption, oh, well, if

1151
00:49:20,239 --> 00:49:21,360
Speaker 1: I'm going to go to the game, I have to

1152
00:49:21,360 --> 00:49:24,560
Speaker 1: pay twenty books to park, right, No, you don't. A

1153
00:49:24,560 --> 00:49:27,680
Speaker 1: lot of people just assume that that comes with the

1154
00:49:28,160 --> 00:49:30,880
Speaker 1: cost of admission, but it doesn't. And you have the

1155
00:49:30,960 --> 00:49:33,759
Speaker 1: choice to do something different with your life and with

1156
00:49:33,840 --> 00:49:34,280
Speaker 1: your money.

1157
00:49:34,400 --> 00:49:35,120
Speaker 3: You have options.

1158
00:49:35,200 --> 00:49:35,439
Speaker 2: Yeah.

1159
00:49:35,640 --> 00:49:38,040
Speaker 1: I mean, maybe we're reading the way too much into this,

1160
00:49:38,440 --> 00:49:39,680
Speaker 1: but that was kind of I was like, oh man,

1161
00:49:39,719 --> 00:49:41,680
Speaker 1: there's a lot to take away from AB's win here.

1162
00:49:41,920 --> 00:49:42,400
Speaker 3: Absolutely.

1163
00:49:42,480 --> 00:49:44,439
Speaker 2: Yeah, And so hopefully folks are hearing this and they're thinking,

1164
00:49:44,480 --> 00:49:47,520
Speaker 2: all right, there's this little thing that it's been in

1165
00:49:47,560 --> 00:49:48,000
Speaker 2: the back.

1166
00:49:47,840 --> 00:49:48,200
Speaker 3: Of my mind.

1167
00:49:48,239 --> 00:49:50,920
Speaker 2: I'm gonna actually do something about it. And the ability

1168
00:49:50,960 --> 00:49:53,879
Speaker 2: to parlay that win into bigger wins, in my mind

1169
00:49:53,960 --> 00:49:57,799
Speaker 2: is sort of my big takeaway. The ability to really

1170
00:49:57,800 --> 00:50:00,520
Speaker 2: set yourself up in some areas, like some of the blocks,

1171
00:50:00,640 --> 00:50:02,640
Speaker 2: like some of the big things, whether it's salary or

1172
00:50:02,680 --> 00:50:05,080
Speaker 2: housing or cars, right, like some of the big wins

1173
00:50:05,239 --> 00:50:08,560
Speaker 2: that could really truly have a massive impact, as you're

1174
00:50:08,600 --> 00:50:11,400
Speaker 2: talking about years of not spending that money compounding in

1175
00:50:11,440 --> 00:50:14,160
Speaker 2: the within the stock market. Yeah, I ab We appreciate

1176
00:50:14,200 --> 00:50:17,680
Speaker 2: you man, thank you for sharing your win with us.

1177
00:50:17,719 --> 00:50:20,080
Speaker 2: And by the way, again, you don't even necessarily have

1178
00:50:20,120 --> 00:50:21,680
Speaker 2: to have a question for us, but we love talking

1179
00:50:21,719 --> 00:50:25,560
Speaker 2: about anything that listeners are doing with their money pretty much.

1180
00:50:25,560 --> 00:50:27,400
Speaker 2: It just gives us a way to connect with folks

1181
00:50:27,400 --> 00:50:30,600
Speaker 2: and to talk about money, which is what we love

1182
00:50:30,680 --> 00:50:33,920
Speaker 2: to do while we are enjoying beers and Joel, you

1183
00:50:33,960 --> 00:50:36,880
Speaker 2: and I are enjoying a fest beer. This is in

1184
00:50:37,160 --> 00:50:40,320
Speaker 2: October fest by Bold Monk. What your thoughts You already

1185
00:50:40,320 --> 00:50:41,759
Speaker 2: said that is one of your favorite styles by them.

1186
00:50:41,800 --> 00:50:44,239
Speaker 1: So yeah, yeah, it is actually well they had actually

1187
00:50:44,280 --> 00:50:45,800
Speaker 1: when we were there last time, they had a really

1188
00:50:45,840 --> 00:50:49,000
Speaker 1: good barrel Age says on that it was like nice

1189
00:50:49,040 --> 00:50:50,200
Speaker 1: and funky, and I really enjoyed that.

1190
00:50:50,400 --> 00:50:50,759
Speaker 3: One of those.

1191
00:50:51,160 --> 00:50:53,080
Speaker 1: They didn't have it bottled or can sadly or I

1192
00:50:53,080 --> 00:50:55,200
Speaker 1: would have brought that, but so should fill up your

1193
00:50:55,200 --> 00:50:57,239
Speaker 1: water bottle and thought about it. I thought about it.

1194
00:50:57,520 --> 00:50:59,680
Speaker 1: I just went back behind there, put my mouth under

1195
00:50:59,680 --> 00:51:03,560
Speaker 1: anything style roll back on the handle. It was awesome. No,

1196
00:51:03,680 --> 00:51:05,799
Speaker 1: so this one was like bronze and color. It was

1197
00:51:05,840 --> 00:51:08,439
Speaker 1: it was multi and a little sweet. And I really

1198
00:51:08,440 --> 00:51:10,400
Speaker 1: do like a good Octoberfest. And I don't know if

1199
00:51:10,440 --> 00:51:13,040
Speaker 1: you know this Octoberfest starts in September, which feels like

1200
00:51:13,080 --> 00:51:15,000
Speaker 1: false advertising, but I'm gonna let it. I'm gonna let

1201
00:51:15,040 --> 00:51:15,520
Speaker 1: it slide.

1202
00:51:15,800 --> 00:51:17,920
Speaker 2: But this, yeah, it's already going. It's it's kind of

1203
00:51:18,000 --> 00:51:20,160
Speaker 2: starting in a few days or you know, it started

1204
00:51:20,160 --> 00:51:22,080
Speaker 2: like a couple of weeks ago. It starts like halfway through September,

1205
00:51:22,120 --> 00:51:24,799
Speaker 2: and it goes through I think the beginning of October.

1206
00:51:24,800 --> 00:51:26,359
Speaker 2: But one of these days we'll make it out there,

1207
00:51:26,400 --> 00:51:28,080
Speaker 2: you know, Okay, it's hanging out with all of our

1208
00:51:28,239 --> 00:51:31,120
Speaker 2: German HTM listeners too. Funny that you mentioned that because

1209
00:51:31,400 --> 00:51:35,399
Speaker 2: we recent episode we talked with Lacey Langford and that's

1210
00:51:35,400 --> 00:51:39,040
Speaker 2: when we enjoyed the KNTE, which was phenomenal and it

1211
00:51:39,120 --> 00:51:41,120
Speaker 2: got me thinking about some of the different European beers.

1212
00:51:41,200 --> 00:51:43,480
Speaker 2: That's where I want to go. I don't like, I

1213
00:51:43,560 --> 00:51:46,600
Speaker 2: might want to swing through the Octoberfest thing for like

1214
00:51:46,640 --> 00:51:48,560
Speaker 2: a day, sure, like it goes on for weeks and

1215
00:51:48,600 --> 00:51:52,640
Speaker 2: people it's all about just large volumes and quantity, Whereas

1216
00:51:52,719 --> 00:51:55,400
Speaker 2: I'm like, I would rather drink like a quarter of

1217
00:51:55,400 --> 00:51:58,040
Speaker 2: the amount of beer I would drink at like over

1218
00:51:58,080 --> 00:52:01,399
Speaker 2: in Munich, enjoy a fraction an know that over in

1219
00:52:01,440 --> 00:52:05,640
Speaker 2: Belgium and going over to three Fonte and uh cant

1220
00:52:06,120 --> 00:52:07,400
Speaker 2: I'm partial those beers.

1221
00:52:07,400 --> 00:52:10,160
Speaker 3: I'm partial to the Belgian styles. Yeah, like, well it'd be.

1222
00:52:10,160 --> 00:52:12,879
Speaker 2: A fun party, but man, I'm gonna yeah, it would

1223
00:52:12,920 --> 00:52:15,040
Speaker 2: much rather head up Cantion. And if you're in Atlanta,

1224
00:52:15,080 --> 00:52:17,080
Speaker 2: by the way, and you like Belgian style beers, that's

1225
00:52:17,120 --> 00:52:20,240
Speaker 2: what Bold Monk kind of does and and their their food,

1226
00:52:20,320 --> 00:52:23,520
Speaker 2: their group of the atmosphere there is, it's a good spot. Excellent, yes, yeah,

1227
00:52:23,640 --> 00:52:25,640
Speaker 2: especially if you're if it's nice weather and you're eating

1228
00:52:25,640 --> 00:52:26,960
Speaker 2: outside and they're a little beer garden.

1229
00:52:27,000 --> 00:52:29,840
Speaker 1: It's so lovely. It's a great spot the upper floor.

1230
00:52:29,960 --> 00:52:32,080
Speaker 1: Yeah yeah, yeah, So all right, man, that's going to

1231
00:52:32,160 --> 00:52:34,520
Speaker 1: do it for this episode. We'll post show notes up

1232
00:52:34,520 --> 00:52:36,200
Speaker 1: on the website at how to money dot com with

1233
00:52:36,239 --> 00:52:37,880
Speaker 1: links to some of the things we reference to the

1234
00:52:37,960 --> 00:52:41,440
Speaker 1: including some of those retirement calculators that we discussed in

1235
00:52:41,480 --> 00:52:42,839
Speaker 1: the twenty five X question.

1236
00:52:42,880 --> 00:52:45,120
Speaker 2: All right, that's gonna be it for this one, buddy.

1237
00:52:45,200 --> 00:53:03,000
Speaker 2: Until next time, Best friends Out, Best Friends Out.