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Speaker 1: Welcome to Had of Money.

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Speaker 2: I'm Joel and I am Matt.

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Speaker 1: And today I'm slowing it down because you did. We're

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Speaker 1: answering your listener questions.

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Speaker 2: I'm a fan of the dramatic pause, Joel, but we're

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Speaker 2: glad to have folks back here on a Monday.

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Speaker 1: You gotta shake things up every now and again.

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Speaker 2: It's true, hope everyone had a great Saint Patrick's Day

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Speaker 2: over the weekend. Speaking of shat pinched shaking things up.

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Speaker 2: But we have some fantastic listener questions to get to.

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Speaker 2: We've got a listener who's wondering if it's worth it

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Speaker 2: to go organic. We're going to talk about that as

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Speaker 2: well as we're going to discuss the risks of health sharing.

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Speaker 2: And another listener she's wondering what she should do if

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Speaker 2: she makes too much money to contribute to our favorite

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Speaker 2: tax advantage retirement accounts. We'll get to that plus more

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Speaker 2: during our episode today.

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Speaker 1: There are problems, and they're bad problems and are good

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Speaker 1: problems that last one you mentioned, Matt, that's a good

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Speaker 1: problem to have, right like, Oh, I'm making too much

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Speaker 1: money to do this thing, but it's still an important

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Speaker 1: financial conundrum to discuss.

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Speaker 2: So I would say most of the questions we get,

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Speaker 2: they're mostly good problems because it means that you have

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Speaker 2: the ability to earn money and you are taking a

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Speaker 2: proactive stance and approach when it comes to how it

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Speaker 2: is that you should either spend less or invest more.

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Speaker 2: Talking about being proactive, we've got some great folks who

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Speaker 2: listen to our show. That's all I'm saying.

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Speaker 1: No, I completely agree, but talking about being proactive listener

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Speaker 1: Kristen posted in the how to Money Facebook group, which

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Speaker 1: if you're on Facebook regularly and you're not a part

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Speaker 1: of the how to Money Facebook group, change that join

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Speaker 1: the group. It's awesome, a bunch of great folks posting

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Speaker 1: interesting things, helping each other out with their personal finances

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Speaker 1: to make more progress. But I had not heard of

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Speaker 1: this company, and she's kind of posting to kind of

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Speaker 1: get some crowd reactions feedback. Yeah, it's built as a

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Speaker 1: four oh one K for home ownership okay company called Foyer,

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Speaker 1: And basically.

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Speaker 2: I like the name, Yeah you can. Yeah, it's like

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Speaker 2: that makes you think of how so I get behind

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Speaker 2: that they.

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Speaker 1: Will match some of what you contribute to this account.

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Speaker 1: And it's a in an effort to help you save

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Speaker 1: for the down payment for the house that you're looking

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Speaker 1: to buy. Did you look into this you?

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Speaker 2: Yeah. In the show notes, you linked to the website

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Speaker 2: of this company. It's one of these new companies, slick website,

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Speaker 2: but talking about how much they'll pay in interest as well,

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Speaker 2: because I didn't look that much into it, whether whether

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Speaker 2: or not it's a bank, but I did go dig

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Speaker 2: in for the uh for how much they would actually match,

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Speaker 2: because that's the most appealing part of this, right, Like

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Speaker 2: why not go with a company who's also going to

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Speaker 2: one for one for every dollar you contribute help you

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Speaker 2: to achieve your dreams of home ownership. I mean until

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Speaker 2: you get to the the rewards details, it's like a

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Speaker 2: separate pdf. Yeah, two hundred dollars maximum that they're only

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Speaker 2: willing to match per year. What's that going to get you?

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Speaker 2: That doesn't even get you like the doorknob to get into. Yeah,

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Speaker 2: and then once you.

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Speaker 1: Do, I guess sign up with like you're forced to

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Speaker 1: use their agents, I believe, right, So I think that's

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Speaker 1: part of the I was curious and like, what are

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Speaker 1: they paying because like that's the biggest selling point I think. Yeah, So,

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Speaker 1: I mean this is trying to I think, solve a

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Speaker 1: problem that doesn't really exist. There are savings buckets that

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Speaker 1: a lot of the great savings accounts offer that you

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Speaker 1: can partake in. You can essentially start funneling money into

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Speaker 1: your down payment fund without even having to open a

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Speaker 1: separate account. And then if you're looking for like some

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Speaker 1: sort of match or something, well, there are bonuses oftentimes

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Speaker 1: to open up a new bank account, just like there

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Speaker 1: are to open up a new credit card.

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Speaker 2: So, yeah, you'll get like four years worth of what

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Speaker 2: it is that four year is going to match you

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Speaker 2: just by moving to a new banking.

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Speaker 1: Yeah, so why don't you instead just opt to remain

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Speaker 1: a free agent essentially, like what agent you're able to choose,

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Speaker 1: and that way you're not tied into some of these

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Speaker 1: nitty gritty details that a company like Foyer makes you

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Speaker 1: abide by.

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Speaker 2: So might be somebody who doesn't know the area where

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Speaker 2: you're looking to buy. There are so many other considerations

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Speaker 2: that go into hiring the right realtor.

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Speaker 1: I don't think we're saying two undred bucks doesn't matter.

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Speaker 1: I just think we're saying, hey, worth it. It's not

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Speaker 1: worth it for this product.

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Speaker 2: Yeah, it's not worth the squeeze. Let's introduce our beer

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

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Speaker 2: This one's called no mastay Ipa. It's got a nome.

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Speaker 2: It's a nome pump and Todd. You thought we forgot

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Speaker 2: about you, didn't you. This is the other beer that

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Speaker 2: you donated to the show. We appreciate. That's Todd's down

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Speaker 2: there in our old stomping grounds down there in Ormwood Park. Yeah.

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Speaker 1: We have our thoughts on this one at the.

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Speaker 2: End of the episode. At the end.

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Speaker 1: That's right man, All right, Well, let's move on.

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Speaker 3: Matt.

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Speaker 1: Let's get to the listener questions. If you have a

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Speaker 1: money question you want Matt and I to tackle it

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Speaker 1: on an upcoming episode, we'd absolutely love to just go

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Speaker 1: to how to money dot com, slash ask, or record

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Speaker 1: a voice memo with your question and send it our

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Speaker 1: way via email how to moneypod at gmail dot com.

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Speaker 1: We look forward to hearing from you. I hope you

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Speaker 1: take it next week on the show. And Matt, let's

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Speaker 1: get to the first question of this episode. This one

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Speaker 1: is about buying organic.

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Speaker 4: Hi, Matt, Joel, this is Lindy Thurston for of Nxville, Tennessee.

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Speaker 4: I know this is a money podcast and not a

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Speaker 4: granola parenting podcast. But considering you are both fathers, I'm

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Speaker 4: hoping you might be able to share some insight. I

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Speaker 4: have a three month old baby boy, and this is

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Speaker 4: our first child. When we were putting his nursery together,

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Speaker 4: our main concern was how to do this as frugly

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Speaker 4: as possible. Now I'm concerned that I didn't spend enough

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Speaker 4: time betting the items we chose to buy based on

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Speaker 4: how non toxic the products are. For example, I found

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Speaker 4: a good deal in a crib mattress for eighty dollars

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Speaker 4: on wayfare. The mattress is made of polyurethane thirty D foam,

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Speaker 4: is flame retardant and water resistant. I am now reading

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Speaker 4: many parents refuse to buy these type mattresses because the

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Speaker 4: chemicals that make crib mattresses flame retardant and water resistant

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Speaker 4: are very toxic and harmful to babies developing brain, an

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Speaker 4: immune system, and can cause cancer, learning disabilities asthma, etc.

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Speaker 4: This has me considering throwing out this mattress and spending

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Speaker 4: one hundred and fifty dollars or more on a certified

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Speaker 4: non toxic mattress made with organic materials as a new parent.

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Speaker 4: It is easy to go down a rabbit hole of

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Speaker 4: information online and think that everything you are doing is

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Speaker 4: harmful to your child, and you're a bad parent for

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Speaker 4: not doing everything as pure, organic and non toxic as possible.

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Speaker 4: I consider myself to be a health conscious person. I

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Speaker 4: prioritize exercise, healthy eating. I avoid artificial food, dies in flavors,

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Speaker 4: high perctose corn syrup, and almost all fast food. Was

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Speaker 4: this a major priority for you guys? Did you spend

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Speaker 4: the extra money or replace items because you later learned

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Speaker 4: that they were potentially toxic or harmful? Is this all

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Speaker 4: fear mongering and companies are exploiting new and anxiety ridden parents.

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Speaker 4: Would you replace the mattress? I look forward to hearing

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Speaker 4: from you.

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Speaker 2: Thanks, Lindy. Great to hear from you. And first off,

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Speaker 2: we want to say congrats on the little guy that

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Speaker 2: you've got there and Jilt, here we go. We're hearing

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Speaker 2: from somebody who wants our advice on something that's not

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Speaker 2: necessarily financial.

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Speaker 1: We talked about this has money implications.

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Speaker 2: I will say there's always some sort of anything we

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Speaker 2: talk about has some sort of financial implication.

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Speaker 1: Should I marry this person? You ask me that question

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Speaker 1: I'll also probably take you down a money path. At

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Speaker 1: some point in the conversation. I got to crunch the numbers.

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Speaker 1: What's her credit score, what's his credit score? How much

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Speaker 1: student loans do they have? Yeah, do you guys agree

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Speaker 1: on the topic of money and what you want p

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Speaker 1: out of your life?

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Speaker 2: It's true, No, like it really is true. But I

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Speaker 2: willing for us to kind of pivot towards some granola

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Speaker 2: parenting advice here for a minute, and first of all,

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Speaker 2: let me buy a super reverse. It is worth saying

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Speaker 2: that not everything is about money. Even though we're going

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Speaker 2: to find sort of the financial angle, it's important to

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Speaker 2: feel comfortable with what it is that you're bringing into

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Speaker 2: your home and what we're putting into our bodies and

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Speaker 2: what we're putting on our bodies. So I'll have to say,

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Speaker 2: I don't think you're crazy for looking into this. I

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Speaker 2: don't think you're crazy for wanting your baby to sleep

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Speaker 2: on a mattress that you trust. At the heart of

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Speaker 2: Lindy's questionle, I feel like like this is it's it's

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Speaker 2: frugal or cheat right, Because anything that we are considering,

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Speaker 2: it's oftentimes what we're what we're saying is is it

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Speaker 2: worth it? What sacrifices are we making in order to

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Speaker 2: pay this low price? Yeah, or in order to get

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Speaker 2: this thing for absolutely free without having to pay any

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Speaker 2: sort of money.

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Speaker 1: It's possible to make an item cheap enough that I'm

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Speaker 1: not interested because the item is so crummy, right, and

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Speaker 1: someone you have the factor in quality, and mat, I

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Speaker 1: feel like you've been kind of You've changed at least

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Speaker 1: some of the items you bring into your home as

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Speaker 1: far as groceries, prioritizing more organics recently. And I haven't

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Speaker 1: followed you down that path to nearly the same extent, but.

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Speaker 2: Totaly, that's something that we will that we've prioritized, and

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Speaker 2: in part it has a lot to do with your

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Speaker 2: income as well. I'm not saying that we're like rolling

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Speaker 2: in the dough right now, but a couple of years ago,

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Speaker 2: Kate and I said, I think this is something we

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Speaker 2: want to prioritize. I mean, every day we eat, like

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Speaker 2: each kid eats a couple of eggs and has a

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Speaker 2: glass of milk, and we're like, okay, well, what if

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Speaker 2: just two things, even those two things something that we

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Speaker 2: are consuming on the rag? What if we go organic

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Speaker 2: in that way? But that being said, we weren't doing

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Speaker 2: that ten years ago. I mean, Lindy's talking about a

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Speaker 2: crib mattress. I think back to literally our first daughter.

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Speaker 2: We bought a used mini crib off of Craigslist, which

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Speaker 2: is extra sketchy, right, it's not even like Facebook marketplace.

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Speaker 2: I think for like thirty or forty bucks. That did

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Speaker 2: not cross our minds at all, as as far as

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Speaker 2: the toxic city and maybe it had already off gased

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Speaker 2: and so we didn't have So buying used is actually

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Speaker 2: the absolute best way to go. Yeah, But now that

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Speaker 2: we're further along, we are considering other things that where

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Speaker 2: we are taking health and whether or not things are organic,

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Speaker 2: we're taking that more into account.

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Speaker 1: For sure, and all of us, every single one of us,

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Speaker 1: are going to fall in different places along the spectrum

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Speaker 1: of what we're willing to accept. And if the organic

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Speaker 1: crib mattress was twelve hundred bucks and the gassy mattress

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Speaker 1: that's one wanna call it is one hundred bucks, then

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Speaker 1: that's probably too much of a discrepancy for even the

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Speaker 1: organic connoisseur.

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Speaker 2: Right, why does our baby have so much gas? Host

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Speaker 2: the gassy mattress, the stinky mattress, right, well, and you

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Speaker 2: and I we even came down in different spots on

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Speaker 2: car seats, Like I was willing to buy the cheapest

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Speaker 2: car seat you looked into, like those there. Joel's a

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Speaker 2: proponent of used car seats that he finds on the

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Speaker 2: side of the road.

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Speaker 1: Maybe not quite that far, but you spent more in

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Speaker 1: your car seats because they're kept or supposedly safer, right,

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Speaker 1: and probably not supposedly, they probably actually are safer.

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Speaker 2: It's like nine point harness versus yeah, Joels, which is

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Speaker 2: like there's only one point harness that it just like

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Speaker 2: flies off the side. That's right, that's right.

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Speaker 1: Hopefully not quite that bad, but like, yeah, it's just

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Speaker 1: something that we didn't prioritize. And I will say, there

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Speaker 1: are regulations for baby mattress. The USDA has them in

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Speaker 1: place in case I's selfled to know, just like there

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Speaker 1: is kind of a bare minimum threshold that people need

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Speaker 1: to meet. And I will say I did a quick

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Speaker 1: Google search map about organic mattresses for babies. The first

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Speaker 1: quote I saw saying that you need one was from

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Speaker 1: the head of an organic mattress company. So there are

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Speaker 1: people with vested interests being quoted in some of these

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Speaker 1: articles telling you that that's throughout you need to take

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Speaker 1: and not typically shaming people, but making it seem like

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Speaker 1: it's this really really important decision and life. You deal

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Speaker 1: with a baby, it's your baby, do you love them

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Speaker 1: or not? You know, And it feels like that kind

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Speaker 1: of decision I think for people sometimes, and so I

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Speaker 1: just don't necessarily think that an organic mattress is a

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Speaker 1: neat but ultimately, again that depends on your values. Yeah,

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Speaker 1: and for in Lindy's case, I hate that she already

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Speaker 1: bought one that she now thinks isn't up to snuff,

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Speaker 1: But I do think if she feels strongly enough, it

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Speaker 1: might make sense to sell it and upgrade to an

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Speaker 1: organic mattress if she's got the funds. It just makes

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Speaker 1: me think too. I mean, baby stuff is like my

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Speaker 1: friend Tim told me, oh, you got to get this

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Speaker 1: device in the crib so that you know if the

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Speaker 1: baby like turns over or stops moving or something in

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Speaker 1: all oh the sids.

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Speaker 2: Yeah, yeah, alarm dude. I never got it even from

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Speaker 2: like the crunchiest parents we know. Thinking of some old

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Speaker 2: friends of ours in town, they're just like, oh no, no, no,

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Speaker 2: if you want to sleep at all. Don't put anything

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Speaker 2: on your baby's foot or something like that. Yeah, because

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Speaker 2: it goes off all the time. That's like all the

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Speaker 2: false alarms and they're just like, screw it. So we

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Speaker 2: don't need that.

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Speaker 1: These are the kind of things I mean, like, granted,

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Speaker 1: obviously SIDS is pretty much the worst thing that can

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Speaker 1: happen to your family.

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Speaker 2: I imagine, yes, me neither. It was terrible, me neither.

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Speaker 1: So it's not like that was like, oh cool, I

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Speaker 1: don't care about that thing.

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Speaker 2: It was just the product that was introduced to the

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Speaker 2: market did not seem like it was solving that problem. Yeah.

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Speaker 1: So even though people swore by it and that was

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Speaker 1: the thing you had to do to quote unquote proof

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Speaker 1: that you love your kid to me, just I just

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Speaker 1: didn't think that that was true. So Yeah, in your case, though, Lyddy,

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Speaker 1: I think this sounds like it's worth prioritizing. It's worth

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Speaker 1: upgrading your mattress and spending the additional dollars because of

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Speaker 1: all the research you've done and how much this appears

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Speaker 1: to mean to.

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Speaker 2: You and considering how much baby sleep or how much

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Speaker 2: you want them to sleep. But that's like one of

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Speaker 2: the things we've talked about it's like, okay, maybe it's

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Speaker 2: worth prioritizing a nicer mattress. It's like a la Milk

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Speaker 2: and eggs. Right, Yeah, but you mentioned the head of

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Speaker 2: the organic mattress company, Joel, and maybe how they're trying

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Speaker 2: to almost instill this fear in folks and to maybe

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Speaker 2: even almost make you seem sort of like negligent maybe

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Speaker 2: if you were not to get this for your kid

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Speaker 2: one a way to sell a product. Like I would

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Speaker 2: say too that first time parents in particular, it's them

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Speaker 2: who often go down these different rabbit holes and for

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Speaker 2: different things. I think we did the same thing, but

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Speaker 2: so often parents end up doing this out of guilt,

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Speaker 2: and they specifically ends up end up spending large amounts

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Speaker 2: of money on I think, honestly two things in particular.

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Speaker 2: It makes me think of like weddings, how much money

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Speaker 2: is spent there. But then again, when it comes to

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Speaker 2: two babies, I think I would not be surprised if

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Speaker 2: it's if it's the same folks who are spending like

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Speaker 2: top dollar on weddings are also spending top dollar on

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Speaker 2: their babies.

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Speaker 1: Well, think about the rule of thumb for engagement rings.

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Speaker 1: Who do you think came up with that similarly, three

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Speaker 1: times your monthly income, well, or you don't love the

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Speaker 1: person you're proposing to, Like, come on now, like that

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Speaker 1: was that's clearly an industry plant.

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Speaker 2: Yeah, and with those in particular, I think like there

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Speaker 2: there are heightened emotions involved, and so like I would

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Speaker 2: just say to be careful and who it is you're

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Speaker 2: following in the different spaces as you're kind of navigating life,

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Speaker 2: be careful with who you're reading, because I think it's

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Speaker 2: a great idea to educate yourself and to make sure

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Speaker 2: that you are performing your due diligence. But there's definitely

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Speaker 2: a lot of fear mongering that takes place as well.

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Speaker 2: I mean, I'll say that my kids, all four of them,

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Speaker 2: slept on that same stinking mattress in that same Mini

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Speaker 2: cris That's stinky, stinking and they're brilliant kids. So maybe

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Speaker 2: the used way is totally the way to get all

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Speaker 2: all make Seinstein's is, yeah, they are for sure as

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Speaker 2: opposed to yeah, splurging on the organic that's right. No,

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Speaker 2: I agree.

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Speaker 1: So I think there's a difference between letting your kid

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Speaker 1: eat paint chips or drink coke out of like a

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Speaker 1: baby bottle or something like that, like at age at

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Speaker 1: three months old, which I think how old Lindy said

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Speaker 1: her son was, and then making sure that the mattress

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Speaker 1: is one hundred percent fully organic. And I don't know Lindy.

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Speaker 1: She actually followed up via email. She mentioned that she

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Speaker 1: purchased a new mattress just before we opted to take

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Speaker 1: this question. But this felt like something I think worth

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Speaker 1: discussing anyway, because I think there's a teachable moment in

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Speaker 1: here for all of us. And like she mentioned, she

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Speaker 1: did it as inexpensively as possible, But it's my belief

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Speaker 1: that most of us feel this push and pull, right,

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Speaker 1: it's hard to let some things go. And you know,

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Speaker 1: car safety is another one that people ride in about. Right,

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Speaker 1: the much older used cars we typically drive and recommend

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Speaker 1: they're not safe enough. Guys, how dare you recommend someone

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Speaker 1: buy a twenty ten car or something like that doesn't

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Speaker 1: have all these new lane departure warnings and all these

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Speaker 1: new methods to keep people safe when they're driving. And

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Speaker 1: often they use that as a reason to upgrade their

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Speaker 1: car to a newer model. And I get that, like

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Speaker 1: I get the reason and the desire to drive in

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Speaker 1: a safer vehicle, But their reasoning doesn't compel me to

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Speaker 1: upgrade my car to eat their own, I guess, and

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Speaker 1: we all have. There's a certain amount of risk that

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Speaker 1: all of us have to take on in almost every

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Speaker 1: area of our lives. Right, It's even just driving a

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Speaker 1: car in and of itself is a risky endeavor. Yes,

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Speaker 1: So we all take our lives into our own hands

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Speaker 1: every single day when we drive a car on the road.

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Speaker 1: And the same thing is true with some of the

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Speaker 1: things that we decide to eat or some of the

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Speaker 1: ways that we decide to live, and some of the

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Speaker 1: purchases we make.

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Speaker 2: Also, I think what you have to ask yourself is

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Speaker 2: what is good enough? Because like, going back to the

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Speaker 2: wedding example, like at a certain point, for anyone who's

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Speaker 2: hosted a wedding or got you know, had a big wedding,

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Speaker 2: like at some point you have to decide who you're

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Speaker 2: going to invite, Like at some point you have to

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Speaker 2: draw a line in the sand, because that's like one

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Speaker 2: of the biggest impacts on the price of the wedding,

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Speaker 2: is all, right, are we multiplying price per head times

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Speaker 2: twenty people? Because those are the most important people to

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Speaker 2: US or like two hundred people, like there's a big

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Speaker 2: difference there, or like another example like vacations, Yes, there

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Speaker 2: are nicer locations than others. And even once you arrive

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Speaker 2: at a vacation spot, there's a drastic difference between the

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Speaker 2: most affordable place there and then then like the nicest,

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Speaker 2: most luxury hotel. But in both cases, like you're just

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Speaker 2: as married, whether you have twenty people there to witness

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Speaker 2: it and whether you have barbecue or if you spent

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Speaker 2: an exorbitant amount, and the same thing. It's true even

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Speaker 2: with like vacation, you're still taking a break from work,

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Speaker 2: whether you are at the more budget hotel kind of

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Speaker 2: place or if you're at the super high end luxury

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Speaker 2: spa hotel. So I think that's important to keep in mind.

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Speaker 2: Is like for you as an individual, at what point

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Speaker 2: is this going to work? What is going to be

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Speaker 2: good enough? You're highlighting the reality of trade offs.

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Speaker 1: Everything in life is a trade offf and we can't

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Speaker 1: afford everything, and so we have to kind of make

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Speaker 1: those decisions, make those calls sometimes on the fly. We

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Speaker 1: have to be thoughtful about those and make sure we're

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Speaker 1: budgeting accordingly because yeah, limited.

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Speaker 2: Resources, Yeah you said, and it's true, we can't afford everything,

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Speaker 2: but like what's funny is that there are some people

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Speaker 2: who can't afford everything, and those folks do, in fact

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Speaker 2: end up getting the best everything. And you would think that, Okay,

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Speaker 2: well that means then that there is like a finish

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Speaker 2: line to cross. But do you know what? It makes

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Speaker 2: me think of Zuckerberg out in Hawaii with his cows

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Speaker 2: that are eaten Macademian nuts or whatever, and it's like

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Speaker 2: there is a way in Like it seems ridiculous, right,

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Speaker 2: but like for him that's important, Like there is always

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Speaker 2: going to be a way to kind of just to

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Speaker 2: move the goalposts and to extend into or to lengthen

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Speaker 2: whatever it is that you think is going to make

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Speaker 2: you happy. And so I guess what I'm highlighting here

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Speaker 2: is the fact that more money isn't the answer. It's

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Speaker 2: not just the fact that the limited resources are allowing

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Speaker 2: or keeping us from achieving quote unquote happiness. At a

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Speaker 2: certain point, you just have to decide that, like enough

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Speaker 2: is enough.

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Speaker 1: And maybe safety can I say, safety can be like

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Speaker 1: a craft beer equivalent. I Emily, my wife, she always

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Speaker 1: tells me that I'm too safety averse, that I don't

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Speaker 1: think about that kind of stuff enough, whether it be

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Speaker 1: like home alarm system, I'm like, who needs it? And

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Speaker 1: even no matter what neighborhood I'm living in, I've always

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Speaker 1: kind of felt that way. Or the car safety thing,

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Speaker 1: like it just doesn't cross my radar that that matters.

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Speaker 1: But maybe that's just like a default in my brain.

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Speaker 1: And other people are like, yeah, dude, sorry, you probably

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Speaker 1: need to, like, you know, ramp up how you think

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Speaker 1: about potential risks in your life. And that might be true.

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Speaker 1: I mean, I'm not that outther like skydiving every week

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Speaker 1: or anything like that, but sure, but stale, maybe it's

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Speaker 1: something that should cross my radar more. But those trade

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Speaker 1: offs matter. And if safety, I think is it probably

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Speaker 1: silly to call it your craft beer equivalent, But if

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Speaker 1: that's something that stands really high on your priority list,

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Speaker 1: then it's worth I think buying the nicer mattress and

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Speaker 1: even though it comes at a loss, and even though

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Speaker 1: you bought the other mattress already, and I think, especially

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Speaker 1: if it helps you sleep better, maybe it'll help your

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Speaker 1: baby sleep better. I don't know, I don't know if

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Speaker 1: there's any If there is, the organic mattress guy probably

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Speaker 1: put us some information on it, if there's data on that.

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Speaker 1: But yeah, I think you've got to always take into

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Speaker 1: consideration those trade offs. And you know, for some people

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Speaker 1: it might move the needle, for others not so much.

435
00:18:55,600 --> 00:18:58,080
Speaker 1: And of course it's not because we just like kids. Matt,

436
00:18:58,119 --> 00:19:00,640
Speaker 1: you've got four, I've got three. We love our kids kids. Yeah,

437
00:19:00,720 --> 00:19:02,879
Speaker 1: I think this is truly where the saying that personal

438
00:19:02,920 --> 00:19:06,359
Speaker 1: finances personal comes into play. And I'm glad, Lindy you

439
00:19:06,359 --> 00:19:09,159
Speaker 1: feel comfortable with the decision you've made. And hopefully this

440
00:19:09,200 --> 00:19:12,560
Speaker 1: discussion gives other people maybe some food for thoughts as

441
00:19:12,600 --> 00:19:15,040
Speaker 1: they're thinking about the kinds of purchases they make and

442
00:19:15,040 --> 00:19:16,320
Speaker 1: what they prioritize in their lives.

443
00:19:16,600 --> 00:19:18,680
Speaker 2: Absolutely. Yeah, this is why at the beginning of every

444
00:19:18,680 --> 00:19:21,400
Speaker 2: interview we ask what their splurge is, what their craft

445
00:19:21,440 --> 00:19:23,280
Speaker 2: beer equivalent is, because that it gives us a little

446
00:19:23,280 --> 00:19:25,000
Speaker 2: peak behind the curtain. It gives us a peek into

447
00:19:25,000 --> 00:19:25,680
Speaker 2: your values.

448
00:19:25,880 --> 00:19:28,000
Speaker 1: Just waiting for someone to answer safety so.

449
00:19:28,520 --> 00:19:30,800
Speaker 2: You know what somebody has what's her name when we

450
00:19:30,800 --> 00:19:34,720
Speaker 2: talked about military, Oh, Lacy Langfords Lazy, Okay, that's she

451
00:19:34,840 --> 00:19:38,440
Speaker 2: mentioned how whether it's the neighborhood, but for her, she

452
00:19:38,560 --> 00:19:41,280
Speaker 2: was willing to pay top not top dollar, but more.

453
00:19:41,160 --> 00:19:43,320
Speaker 1: In order to have that. That's why she's got the

454
00:19:43,320 --> 00:19:44,240
Speaker 1: barbier around her friends.

455
00:19:44,320 --> 00:19:48,439
Speaker 2: So the fact is, Lindy, you have the ability to

456
00:19:48,480 --> 00:19:50,280
Speaker 2: pursue what it is that you think is going to

457
00:19:50,400 --> 00:19:52,160
Speaker 2: lead to the most happiness. Like that's what's so great

458
00:19:52,160 --> 00:19:54,080
Speaker 2: about the country we live in, Like we have the

459
00:19:54,160 --> 00:19:56,240
Speaker 2: freedom to be able to spend our money into pursue

460
00:19:56,240 --> 00:19:57,679
Speaker 2: the things that we want to that we think is

461
00:19:57,680 --> 00:20:00,840
Speaker 2: going to move the neal the most for us. And

462
00:20:01,160 --> 00:20:02,960
Speaker 2: like you're calling it safety, but for Linda, I don't know.

463
00:20:02,960 --> 00:20:05,960
Speaker 2: Maybe Linda would call it a prioritizing health and making

464
00:20:06,000 --> 00:20:08,840
Speaker 2: sure that whether it's again what she's eating or what

465
00:20:09,000 --> 00:20:10,560
Speaker 2: you know, what it is that she's putting her baby on.

466
00:20:10,800 --> 00:20:13,440
Speaker 2: But Lindy, we hope that gives you some food for thought.

467
00:20:13,440 --> 00:20:16,359
Speaker 2: And not specifically for the mattress, since you went ahead

468
00:20:16,359 --> 00:20:19,480
Speaker 2: and pulled the trigger on that, but just everything that

469
00:20:19,520 --> 00:20:22,720
Speaker 2: we end up purchasing. I think this is the same

470
00:20:22,760 --> 00:20:24,840
Speaker 2: framework that we can use as we're trying to make

471
00:20:24,840 --> 00:20:27,280
Speaker 2: the best decisions for us and for our family. Joe,

472
00:20:27,320 --> 00:20:29,240
Speaker 2: We've got more to get to. We're gonna hear from

473
00:20:29,280 --> 00:20:31,840
Speaker 2: a listener who has unfortunately been with one of the

474
00:20:31,880 --> 00:20:34,600
Speaker 2: big banks. We'll get to that plus more right after this.

475
00:20:42,520 --> 00:20:44,320
Speaker 1: All right, we're back. We got more money questions to

476
00:20:44,359 --> 00:20:46,520
Speaker 1: get to on this episode. Matt, you know how we

477
00:20:46,560 --> 00:20:49,520
Speaker 1: feel about big banks. We're not gonna take kindly. Maybe

478
00:20:49,720 --> 00:20:50,600
Speaker 1: to this next question.

479
00:20:51,119 --> 00:20:53,520
Speaker 5: I met and Joel's Jessel again from New York City.

480
00:20:53,920 --> 00:20:57,080
Speaker 5: I have another question now about savings accounts. So I

481
00:20:57,119 --> 00:21:00,560
Speaker 5: have multiple savings accounts at big banks like of America

482
00:21:00,600 --> 00:21:02,960
Speaker 5: and Wells Fargo, and I know those are some of

483
00:21:02,960 --> 00:21:06,720
Speaker 5: the worst banks whoops and produce little yield in terms

484
00:21:06,720 --> 00:21:08,800
Speaker 5: of interest. So I want to take your advice and

485
00:21:08,840 --> 00:21:11,480
Speaker 5: put them in high yield savings accounts. So what's the

486
00:21:11,520 --> 00:21:14,400
Speaker 5: best way to go about doing this? Should I transfer

487
00:21:14,480 --> 00:21:17,440
Speaker 5: all of the savings funds into one high yield savings

488
00:21:17,440 --> 00:21:21,439
Speaker 5: account at a single place like CIT My checking in

489
00:21:21,480 --> 00:21:24,320
Speaker 5: business banking is with Bank of America, so I'm inclined

490
00:21:24,359 --> 00:21:27,760
Speaker 5: to keep some savings there. I welcome any advice you

491
00:21:27,800 --> 00:21:30,440
Speaker 5: have about making big money moves with large chunks of money,

492
00:21:30,600 --> 00:21:33,240
Speaker 5: like into new banks. I'm always a little nervous when

493
00:21:33,240 --> 00:21:35,760
Speaker 5: it comes to changing and opening new accounts. Thanks a lot,

494
00:21:35,880 --> 00:21:36,600
Speaker 5: Take care of y'all.

495
00:21:36,920 --> 00:21:38,680
Speaker 2: All right, Jaell, I'm willing to take a question from

496
00:21:38,720 --> 00:21:41,720
Speaker 2: Yessel every single week. If she says y'all and she

497
00:21:41,760 --> 00:21:44,200
Speaker 2: lives in New York City, I don't know if she's

498
00:21:44,240 --> 00:21:47,320
Speaker 2: doing that just for us, or she's like a speaker

499
00:21:47,359 --> 00:21:51,240
Speaker 2: language or they'll order stand be better if I use

500
00:21:51,440 --> 00:21:54,640
Speaker 2: the words that they use, right. Props for that, yesl

501
00:21:55,200 --> 00:21:57,080
Speaker 2: So this question, it actually makes me wonder if we're

502
00:21:57,119 --> 00:21:59,399
Speaker 2: too strict when it comes to how it is that

503
00:21:59,440 --> 00:22:02,200
Speaker 2: we talk about out where you do your banking. I

504
00:22:02,280 --> 00:22:04,120
Speaker 2: hope that's not the case. I hope it. It's not

505
00:22:04,160 --> 00:22:07,800
Speaker 2: necessarily coming across that we're like super fundamentalist when it

506
00:22:07,840 --> 00:22:10,040
Speaker 2: comes to the big banks. But it's just that we

507
00:22:10,119 --> 00:22:12,720
Speaker 2: believe that the way that they treat their customers that's

508
00:22:12,720 --> 00:22:15,639
Speaker 2: just not good enough because they're charging fees. These are

509
00:22:15,680 --> 00:22:18,720
Speaker 2: fees that our favorite online banks refuse to charge, and

510
00:22:18,760 --> 00:22:21,600
Speaker 2: while at the same time they're paying nothing virtually an

511
00:22:21,600 --> 00:22:25,879
Speaker 2: interest for Saversham. Yeah. So while the vast majority of

512
00:22:25,920 --> 00:22:28,359
Speaker 2: Americans do business with the biggest banks in the country,

513
00:22:28,440 --> 00:22:30,560
Speaker 2: I don't think we'll ever actually stop trying to convince

514
00:22:30,640 --> 00:22:33,960
Speaker 2: folks to go a different route. And all that's being said,

515
00:22:34,160 --> 00:22:38,760
Speaker 2: I take back. I am fine being a big bank tyrants,

516
00:22:38,800 --> 00:22:41,520
Speaker 2: So like, yeah, I don't think it's something that anybody

517
00:22:41,600 --> 00:22:42,480
Speaker 2: really should be considering.

518
00:22:42,560 --> 00:22:45,480
Speaker 1: Yeah, all right. I mean maybe it's a don Quixote

519
00:22:45,800 --> 00:22:48,719
Speaker 1: esque approach we're taking, because I don't know if we're

520
00:22:48,760 --> 00:22:51,480
Speaker 1: making a dent, necessarily, Matt on the number of people

521
00:22:51,520 --> 00:22:54,480
Speaker 1: in this country who still do business with the big banks.

522
00:22:54,480 --> 00:22:57,280
Speaker 1: But at least we can influence a minority of folks

523
00:22:57,400 --> 00:23:00,800
Speaker 1: who listen to this podcast and hopefully convince the majority,

524
00:23:00,880 --> 00:23:02,679
Speaker 1: if not all of them, to not do business with

525
00:23:02,680 --> 00:23:03,920
Speaker 1: the banks at least banks too.

526
00:23:03,880 --> 00:23:05,440
Speaker 2: At least Yessel and her friends.

527
00:23:05,520 --> 00:23:07,760
Speaker 1: Yes, right, that's right, And that's because, like you said,

528
00:23:07,800 --> 00:23:10,040
Speaker 1: the big banks suck, right. I guess the best thing,

529
00:23:10,040 --> 00:23:11,760
Speaker 1: I don't know, maybe they've got going for them is

530
00:23:11,840 --> 00:23:14,919
Speaker 1: a plethora of brick and mortar locations. But when's the

531
00:23:14,960 --> 00:23:17,280
Speaker 1: last time Millennials and gen z Ers stepped foot in

532
00:23:17,280 --> 00:23:20,200
Speaker 1: a branch? I don't remember the last time I steppedot.

533
00:23:19,680 --> 00:23:22,400
Speaker 2: And really can't remember. There's over a decade.

534
00:23:22,119 --> 00:23:24,880
Speaker 1: There's literally a brick and mortar credit union being built

535
00:23:24,960 --> 00:23:28,040
Speaker 1: right up the street from us. I've noticed, and I'm like, really, like,

536
00:23:28,400 --> 00:23:30,919
Speaker 1: I guess credit unions maybe have more. They's more of

537
00:23:30,920 --> 00:23:33,560
Speaker 1: a necessity for brick and mortar, But for banks, I'm

538
00:23:33,560 --> 00:23:36,159
Speaker 1: always surprised when they're building new locations because I'm just

539
00:23:36,200 --> 00:23:37,679
Speaker 1: wondering who's going into them.

540
00:23:37,880 --> 00:23:39,240
Speaker 2: I don't know, Yeah, but I.

541
00:23:39,200 --> 00:23:41,320
Speaker 1: Think, you know, young professionals. Even there was an article

542
00:23:41,359 --> 00:23:44,160
Speaker 1: about how they're carrying wallets far less often, like it's

543
00:23:44,280 --> 00:23:47,360
Speaker 1: digital everything these days for the majority of folks, especially

544
00:23:47,960 --> 00:23:50,359
Speaker 1: especially for young folks. And let's talk about how much

545
00:23:50,359 --> 00:23:53,040
Speaker 1: it could cost you, Matt. How much maybe less money

546
00:23:53,040 --> 00:23:53,919
Speaker 1: you're going to have at the end of.

547
00:23:53,920 --> 00:23:56,480
Speaker 2: The day depends on how much money you got sockedids.

548
00:23:56,000 --> 00:23:58,160
Speaker 1: On how much money depends on this specific encounter. And

549
00:23:58,320 --> 00:24:00,520
Speaker 1: let's save you out forty thousand bucks in saving. You're

550
00:24:00,520 --> 00:24:03,600
Speaker 1: missing out on roughly two thousand dollars in interest earnings

551
00:24:04,040 --> 00:24:06,760
Speaker 1: each year at least right now, and potentially more if

552
00:24:06,800 --> 00:24:08,520
Speaker 1: you're being charged with ridiculous fees to let's say it's

553
00:24:08,520 --> 00:24:11,000
Speaker 1: ten tweve dollars a month in fees. That's eating into

554
00:24:11,000 --> 00:24:13,760
Speaker 1: your savings as well. Yes, unfortunately, it sounds like you

555
00:24:13,760 --> 00:24:15,840
Speaker 1: don't need convincing. I think I guess we're just trying

556
00:24:15,840 --> 00:24:16,680
Speaker 1: to convince everyone else.

557
00:24:16,760 --> 00:24:18,880
Speaker 2: Yeah, so you said two thousand dollars, it is worth

558
00:24:18,960 --> 00:24:21,600
Speaker 2: changing banks for two thousand a year, whereas we're talking

559
00:24:21,600 --> 00:24:25,040
Speaker 2: about four year earlier with two hundred dollars. E probably

560
00:24:25,040 --> 00:24:27,480
Speaker 2: not there, but yeah, to zero to the end of that,

561
00:24:27,480 --> 00:24:31,280
Speaker 2: that makes a big difference. And she mentioned CIT they're

562
00:24:31,320 --> 00:24:33,600
Speaker 2: a great one because of the super high rates they're

563
00:24:33,600 --> 00:24:37,120
Speaker 2: paying these days. We also like Discover Capital one. I'm

564
00:24:37,119 --> 00:24:41,040
Speaker 2: a big fan of ally myself, and they each offer

565
00:24:41,080 --> 00:24:43,679
Speaker 2: different features, and so maybe just dig into some of

566
00:24:43,720 --> 00:24:46,280
Speaker 2: those different options just a bit and see which one

567
00:24:46,359 --> 00:24:48,080
Speaker 2: might make the sense for the way it is that

568
00:24:48,119 --> 00:24:52,399
Speaker 2: you're banking. So, for instance, like one might offer free checks,

569
00:24:52,800 --> 00:24:54,640
Speaker 2: but you're saying, well, it's not important to me because

570
00:24:54,680 --> 00:24:58,040
Speaker 2: I never write checks. Instead, maybe prioritize the one that's

571
00:24:58,080 --> 00:25:01,919
Speaker 2: offering the higher interest rate. You're asking, how do you

572
00:25:02,040 --> 00:25:05,680
Speaker 2: make the switch? I like the idea of sending most

573
00:25:05,720 --> 00:25:08,159
Speaker 2: of your money over to the new online bank, not

574
00:25:08,200 --> 00:25:11,280
Speaker 2: necessarily all of your money, because you want to ensure

575
00:25:11,480 --> 00:25:14,360
Speaker 2: that any automatic debits, for instance, like if you've got

576
00:25:14,359 --> 00:25:17,000
Speaker 2: a mortgage payment or anything like a bill pay, an

577
00:25:17,040 --> 00:25:19,040
Speaker 2: automatic bill pay, you want to make sure that those

578
00:25:19,080 --> 00:25:21,600
Speaker 2: are also fully switched over to the new account before

579
00:25:21,760 --> 00:25:25,080
Speaker 2: closing this account completely. That being said, you will be

580
00:25:25,119 --> 00:25:28,200
Speaker 2: straddling a couple banks for a number of months while

581
00:25:28,200 --> 00:25:31,280
Speaker 2: you're trying things out. But I think that's important before

582
00:25:31,800 --> 00:25:34,359
Speaker 2: you maybe take the big plunge and before you close

583
00:25:34,400 --> 00:25:36,480
Speaker 2: that account altogether, and if.

584
00:25:36,440 --> 00:25:37,840
Speaker 1: You don't want to, you don't want to accidentally miss

585
00:25:37,840 --> 00:25:39,840
Speaker 1: a payment because you close that account too early and

586
00:25:39,880 --> 00:25:41,240
Speaker 1: then you're like, oh crap, now I got to clean

587
00:25:41,280 --> 00:25:41,760
Speaker 1: this mess up.

588
00:25:41,840 --> 00:25:44,399
Speaker 2: Exactly, you end up shooting yourself in the foot. And

589
00:25:44,440 --> 00:25:47,119
Speaker 2: maybe two you're asking to like, how do I actually

590
00:25:47,240 --> 00:25:49,679
Speaker 2: get the funds over to that new bank? Well, what

591
00:25:49,800 --> 00:25:52,080
Speaker 2: you do? You go to your brick and mortar, You

592
00:25:52,080 --> 00:25:54,160
Speaker 2: withdraw fifty thousand dollars, You put it in a shoe box,

593
00:25:54,400 --> 00:25:55,440
Speaker 2: and you mail it to jowl.

594
00:25:56,680 --> 00:25:58,080
Speaker 1: We'll handle it all for you.

595
00:25:58,080 --> 00:26:00,320
Speaker 2: We'll take care of it for you. No it So

596
00:26:00,400 --> 00:26:02,840
Speaker 2: it's pretty simple to be able to link your two

597
00:26:02,920 --> 00:26:03,960
Speaker 2: different accounts and of.

598
00:26:03,960 --> 00:26:05,159
Speaker 1: Those ach transfers.

599
00:26:05,280 --> 00:26:07,280
Speaker 2: Yeah, yeah, whether it's most likely going to be the

600
00:26:07,320 --> 00:26:09,560
Speaker 2: new bank that you end up choosing, that you end

601
00:26:09,640 --> 00:26:12,040
Speaker 2: up going with, that they'll make it easier. So typically

602
00:26:12,080 --> 00:26:15,080
Speaker 2: it's easier to pull money from your old account rather

603
00:26:15,119 --> 00:26:17,639
Speaker 2: than push money to your new account. But you just

604
00:26:17,640 --> 00:26:21,280
Speaker 2: set that up. They do the two deposits, two small deposits.

605
00:26:21,280 --> 00:26:24,960
Speaker 2: You just verify. You know. What else I noticed is

606
00:26:24,960 --> 00:26:29,280
Speaker 2: that they don't take that money back, either frugal or cheap.

607
00:26:29,359 --> 00:26:31,080
Speaker 2: Opening a bunch of bank accounts in order to score

608
00:26:31,480 --> 00:26:34,080
Speaker 2: a seven cent plus nine cent deposit.

609
00:26:33,840 --> 00:26:35,400
Speaker 1: Sounds like a waste of your time, but it's it's

610
00:26:35,400 --> 00:26:36,400
Speaker 1: it's pretty straightforward.

611
00:26:36,440 --> 00:26:40,800
Speaker 2: There's no need to necessarily wire that money, and because

612
00:26:40,800 --> 00:26:44,520
Speaker 2: that costs money too, and sometimes they offer there's there's

613
00:26:44,560 --> 00:26:48,119
Speaker 2: free wires. But the ability again, this kind of plays

614
00:26:48,119 --> 00:26:50,440
Speaker 2: into you sort of test driving the new account, because

615
00:26:50,480 --> 00:26:52,800
Speaker 2: sometimes banks will put limits on how much you are

616
00:26:52,880 --> 00:26:55,520
Speaker 2: able to transfer over once you link your accounts. I

617
00:26:55,520 --> 00:26:57,439
Speaker 2: almost still see that as a good thing because it

618
00:26:57,520 --> 00:27:00,280
Speaker 2: keeps you from going all in with one bank before

619
00:27:00,280 --> 00:27:02,480
Speaker 2: you're trying out all the bells and whistles that they're offering.

620
00:27:02,600 --> 00:27:05,320
Speaker 1: Right, you mentioned that it's actually fairly easy to open

621
00:27:05,359 --> 00:27:07,840
Speaker 1: a new bank account, and you're right. But there's a

622
00:27:07,920 --> 00:27:10,000
Speaker 1: chance that it actually gets a whole lot easier in

623
00:27:10,040 --> 00:27:12,159
Speaker 1: the near future. And that's I think that's how the

624
00:27:12,200 --> 00:27:15,199
Speaker 1: big banks have retained people. They had the first mover advantage.

625
00:27:15,320 --> 00:27:17,800
Speaker 1: There's inertia bias on behalf of so many people. They

626
00:27:17,840 --> 00:27:19,920
Speaker 1: just kind of stay put because it's, Ah, it's just

627
00:27:19,960 --> 00:27:22,199
Speaker 1: too pesky, it's just too annoying. I don't really want

628
00:27:22,240 --> 00:27:24,280
Speaker 1: to go through the hassle of setting up new bill

629
00:27:24,280 --> 00:27:26,119
Speaker 1: pay at the other bank. Blah blah blah blah blah.

630
00:27:26,280 --> 00:27:29,800
Speaker 1: And the CFPB Consumer Financial Protection Bureau, they proposed a

631
00:27:29,880 --> 00:27:31,720
Speaker 1: rule at the end of last year. We talked about

632
00:27:31,720 --> 00:27:32,480
Speaker 1: this on a Friday flight.

633
00:27:32,520 --> 00:27:33,320
Speaker 2: I believe they.

634
00:27:33,280 --> 00:27:36,120
Speaker 1: Would force the banks to essentially grease the wheels when

635
00:27:36,160 --> 00:27:37,879
Speaker 1: you want to do business elfware, when you're tired of

636
00:27:37,920 --> 00:27:40,760
Speaker 1: your big bank and you're like, it's just it's too difficult.

637
00:27:40,840 --> 00:27:43,200
Speaker 1: Well to see IFPV says banks are going to have

638
00:27:43,240 --> 00:27:47,200
Speaker 1: to make it easier for you to basically share your

639
00:27:47,240 --> 00:27:51,480
Speaker 1: old info with the new bank, and so yeah, it's

640
00:27:51,480 --> 00:27:53,480
Speaker 1: going to help, I think reduce to friction, which is

641
00:27:53,480 --> 00:27:55,239
Speaker 1: why so many people decide to stay put. They take

642
00:27:55,280 --> 00:27:58,760
Speaker 1: it on the chin with fees, with crappy interest rates,

643
00:27:59,040 --> 00:28:01,280
Speaker 1: and I think if this new rule comes into effects,

644
00:28:01,280 --> 00:28:03,480
Speaker 1: we're going to see more people being willing to change

645
00:28:03,520 --> 00:28:05,359
Speaker 1: banks just because it got a whole heck of a

646
00:28:05,400 --> 00:28:05,919
Speaker 1: lot easier.

647
00:28:06,240 --> 00:28:08,560
Speaker 2: Yeah, well, it's funny. I mean you mentioned inertia bias,

648
00:28:08,560 --> 00:28:11,639
Speaker 2: which is like a psychological term, like that's a mental hurdle.

649
00:28:11,680 --> 00:28:15,919
Speaker 2: And so even if it's completely smooth as butter, there

650
00:28:15,960 --> 00:28:18,040
Speaker 2: are still going to be folks who are attached to

651
00:28:18,160 --> 00:28:21,239
Speaker 2: the old bank because oh, well, that's I remember when

652
00:28:21,280 --> 00:28:23,520
Speaker 2: I walked into that branch as a kid with my parents,

653
00:28:23,600 --> 00:28:26,639
Speaker 2: and oh that's mom helped me open that account, and

654
00:28:26,720 --> 00:28:29,000
Speaker 2: I was going off to college because we needed to.

655
00:28:29,440 --> 00:28:32,280
Speaker 2: There are all these sort of psychological aspects that keep

656
00:28:32,320 --> 00:28:34,560
Speaker 2: us where we are. But I do think if there's

657
00:28:34,560 --> 00:28:36,200
Speaker 2: a way for us to sort of flip a switch

658
00:28:36,440 --> 00:28:38,800
Speaker 2: and make that transition a little more seamless, it could

659
00:28:38,800 --> 00:28:41,560
Speaker 2: help for sure. And so yes, well, she also mentioned

660
00:28:41,560 --> 00:28:45,000
Speaker 2: business checking, and she didn't even ask about that. It

661
00:28:45,080 --> 00:28:47,280
Speaker 2: sounded like she was, oh, well, of course, I'm going

662
00:28:47,320 --> 00:28:50,520
Speaker 2: to keep my business checking with the big bank with

663
00:28:50,600 --> 00:28:52,840
Speaker 2: the brick and mortar there, And what do you.

664
00:28:52,800 --> 00:28:53,440
Speaker 1: Have to say about that?

665
00:28:53,480 --> 00:28:55,400
Speaker 2: Man, Well, I think the reason she might be thinking

666
00:28:55,400 --> 00:28:57,760
Speaker 2: that is because there are far fewer choices on that front.

667
00:28:57,760 --> 00:29:01,240
Speaker 2: You don't hear about all of these different newer online

668
00:29:01,680 --> 00:29:05,320
Speaker 2: business checking accounts business Savings account. But that being said,

669
00:29:05,360 --> 00:29:09,280
Speaker 2: options have improved over the past decade. We are we're

670
00:29:09,360 --> 00:29:12,400
Speaker 2: kind of in transition right now. We're actually with Capital One,

671
00:29:12,880 --> 00:29:16,160
Speaker 2: but we also opened an account with I think it's Ley,

672
00:29:16,400 --> 00:29:18,560
Speaker 2: I don't know, it's l I l I. I don't

673
00:29:18,600 --> 00:29:20,880
Speaker 2: know how to say it. But we actually found that

674
00:29:21,160 --> 00:29:24,080
Speaker 2: they have some annoying limitations and so I was referring

675
00:29:24,120 --> 00:29:28,040
Speaker 2: back to some of the limits that they place on transfers.

676
00:29:28,080 --> 00:29:30,720
Speaker 2: That's something that we have noticed there with them. So

677
00:29:30,720 --> 00:29:32,960
Speaker 2: it's a massive headache despite the higher interest rate that

678
00:29:32,960 --> 00:29:36,000
Speaker 2: they're paying to business owners. Certainly it's nice to earn

679
00:29:36,040 --> 00:29:38,480
Speaker 2: extra but if it ends up taking a week to

680
00:29:38,520 --> 00:29:41,320
Speaker 2: transfer funds, and I'm not saying it does, we just

681
00:29:41,360 --> 00:29:44,360
Speaker 2: had some there's some hiccups when it came to transferring

682
00:29:44,360 --> 00:29:46,440
Speaker 2: over some of our money. Maybe it was more anecdotal,

683
00:29:46,840 --> 00:29:48,560
Speaker 2: but that can be a real problem for small business

684
00:29:48,600 --> 00:29:50,480
Speaker 2: owners who are looking to make sure they have funds

685
00:29:50,480 --> 00:29:53,000
Speaker 2: on hand to make payroll or to pay vendors. And

686
00:29:53,040 --> 00:29:55,920
Speaker 2: so if you want everything under one roof, if you're

687
00:29:55,920 --> 00:29:58,680
Speaker 2: looking at personal and business accounts, I think Capital One

688
00:29:58,760 --> 00:30:00,959
Speaker 2: it seems like the way to go. They do charge

689
00:30:00,960 --> 00:30:04,040
Speaker 2: for their business checking accounts, but there's ways to waive

690
00:30:04,080 --> 00:30:07,360
Speaker 2: that fee if you keep certain minimums minimum balances there

691
00:30:07,400 --> 00:30:09,840
Speaker 2: within the account. That way you can avoid doing any

692
00:30:09,840 --> 00:30:12,800
Speaker 2: business with that actual It's funny because we're talking about

693
00:30:12,840 --> 00:30:15,120
Speaker 2: Capital One, we don't really see them as one of

694
00:30:15,160 --> 00:30:17,520
Speaker 2: the big banks, like they are as the ninth biggest,

695
00:30:17,560 --> 00:30:21,040
Speaker 2: so they're massive for sure, but they're not the big banks, right.

696
00:30:21,120 --> 00:30:23,920
Speaker 2: They were usually referring to City Chase, Bank of America,

697
00:30:23,960 --> 00:30:25,920
Speaker 2: Wells Fargo, the top four exact, they're the worst. So

698
00:30:25,960 --> 00:30:28,480
Speaker 2: that being said, we're fans of Capital One. But again,

699
00:30:28,640 --> 00:30:32,920
Speaker 2: checkout l I l I. I'm gonna call it Lily, Okay, Lily.

700
00:30:33,440 --> 00:30:36,040
Speaker 2: They I forget what they're offering, what they're paying right now,

701
00:30:36,040 --> 00:30:38,840
Speaker 2: but it's in the four percent range on their savings

702
00:30:38,840 --> 00:30:41,800
Speaker 2: accounts that you can tie or open there in conjunction

703
00:30:42,160 --> 00:30:43,280
Speaker 2: with your business checking.

704
00:30:43,360 --> 00:30:45,760
Speaker 1: Which that's the whole reason that we moved is because

705
00:30:45,800 --> 00:30:49,200
Speaker 1: it's unheard of for business. It's ridiculous because some of

706
00:30:49,240 --> 00:30:52,600
Speaker 1: the newer business banking accounts will pay you maybe one

707
00:30:52,640 --> 00:30:55,440
Speaker 1: percent if they feel like it, but Lily is kind

708
00:30:55,440 --> 00:30:57,640
Speaker 1: of trying to up end the system. Four percent on

709
00:30:57,720 --> 00:31:00,920
Speaker 1: business savings is pretty impressive, so that was the main

710
00:31:00,920 --> 00:31:03,240
Speaker 1: impetus for the switch. There's been a few hiccups in

711
00:31:03,280 --> 00:31:05,600
Speaker 1: the transition, but hopefully it'll all be worth it in

712
00:31:05,640 --> 00:31:05,880
Speaker 1: the end.

713
00:31:05,920 --> 00:31:07,840
Speaker 2: Yeah, and I just checked and it's actually four point

714
00:31:08,760 --> 00:31:12,160
Speaker 2: That's pretty sweet. That's pretty it's worth considering, maybe worth

715
00:31:12,200 --> 00:31:14,280
Speaker 2: some of the hurdles in the headaches. You turn that

716
00:31:14,320 --> 00:31:17,160
Speaker 2: extra exactly the extra return by Joel. Let's get to

717
00:31:17,200 --> 00:31:19,080
Speaker 2: our next question. This is from a listener who's making

718
00:31:19,120 --> 00:31:21,360
Speaker 2: a good bit of money. She's wanting to make sure

719
00:31:21,960 --> 00:31:24,560
Speaker 2: she's taking advantage of some of the different tax loopholes

720
00:31:24,600 --> 00:31:26,000
Speaker 2: that are available to her.

721
00:31:26,360 --> 00:31:30,479
Speaker 3: Hi, Matt and Joel, this is Kara calling from Gaithersburg, Maryland. First,

722
00:31:30,600 --> 00:31:32,520
Speaker 3: I wanted to thank you for the great podcast you

723
00:31:32,560 --> 00:31:35,440
Speaker 3: put out. I have listened to almost every episode and

724
00:31:35,560 --> 00:31:39,719
Speaker 3: also started listening to other financial podcasts, including Afford Anything

725
00:31:39,760 --> 00:31:44,160
Speaker 3: and Stacking Benjamins. Also, since listening to your podcast, my

726
00:31:44,240 --> 00:31:46,840
Speaker 3: husband and I have done the following, changed our cell

727
00:31:46,840 --> 00:31:50,000
Speaker 3: phone carrier, opened an HSA, and invested the money, and

728
00:31:50,040 --> 00:31:52,680
Speaker 3: we're in the process of getting term life insurance, among

729
00:31:52,720 --> 00:31:56,320
Speaker 3: other things. My question today is regarding an old employer,

730
00:31:56,360 --> 00:31:59,240
Speaker 3: traditional four oh one K, which currently has about fifty

731
00:31:59,280 --> 00:32:02,080
Speaker 3: four thousand dollars in it. I was planning to roll

732
00:32:02,120 --> 00:32:05,760
Speaker 3: it into my current employer traditional four to one K account. However,

733
00:32:05,920 --> 00:32:08,880
Speaker 3: after listening to your discussions about the retirement account triangle,

734
00:32:09,240 --> 00:32:13,000
Speaker 3: tax exempt, tax deferred, and tax advantaged, I was thinking

735
00:32:13,000 --> 00:32:15,400
Speaker 3: it might be more advantageous to open an IRA and

736
00:32:15,480 --> 00:32:18,360
Speaker 3: roll the funds into the IRA. And I also had

737
00:32:18,360 --> 00:32:21,440
Speaker 3: a question about WRATH accounts. I believe that we are

738
00:32:21,480 --> 00:32:25,920
Speaker 3: currently under the salary limits for a roth IRA account. However,

739
00:32:26,080 --> 00:32:29,000
Speaker 3: if I understand them correctly, we might exceed the salary

740
00:32:29,080 --> 00:32:31,640
Speaker 3: limits for a roth IRA in the next five years.

741
00:32:32,240 --> 00:32:34,880
Speaker 3: What happens, then, I would love to hear your thoughts

742
00:32:34,880 --> 00:32:37,080
Speaker 3: on where I should put these funds and anything else

743
00:32:37,120 --> 00:32:40,720
Speaker 3: that I should consider. Thanks for everything you do, Matt.

744
00:32:40,760 --> 00:32:42,800
Speaker 1: I try to exist in a headspace that there are

745
00:32:42,840 --> 00:32:44,640
Speaker 1: no other personal financios in existence.

746
00:32:44,680 --> 00:32:46,840
Speaker 2: So, yeah, what are these other shows? Don't know what

747
00:32:46,880 --> 00:32:48,040
Speaker 2: you're talking about? Those people.

748
00:32:49,400 --> 00:32:49,959
Speaker 1: Was just kidding.

749
00:32:50,080 --> 00:32:52,960
Speaker 2: She mentioned two great ones afford Anything Stacking Benjamin's.

750
00:32:53,240 --> 00:32:56,160
Speaker 1: Paula and Joe are true gems. They're they're friends of ours,

751
00:32:56,280 --> 00:32:59,080
Speaker 1: They're wonderful folks and they put out great content. So

752
00:32:59,480 --> 00:33:01,800
Speaker 1: in Kara by the way, you have done great work

753
00:33:02,000 --> 00:33:05,280
Speaker 1: up until this point with your money, and so congrats

754
00:33:05,280 --> 00:33:08,000
Speaker 1: on all the progress you've made on a variety of

755
00:33:08,040 --> 00:33:11,200
Speaker 1: important financial tasks. And you mentioned life insurance as one

756
00:33:11,200 --> 00:33:13,120
Speaker 1: of the tasks that you're attempting to complete right now,

757
00:33:13,160 --> 00:33:15,760
Speaker 1: that's on deck. Yeah, we've got a new article up

758
00:33:15,760 --> 00:33:17,800
Speaker 1: on the site that we'll link to about how to

759
00:33:17,800 --> 00:33:21,320
Speaker 1: proceed in terms of getting term life insurance. Term life insurance,

760
00:33:21,360 --> 00:33:24,600
Speaker 1: of course the slam down choice for ninety nine plus

761
00:33:24,600 --> 00:33:27,760
Speaker 1: percent of people who are need life insurance. So we'll

762
00:33:27,800 --> 00:33:29,640
Speaker 1: put the link in the show notes. Hopefully that'll be

763
00:33:29,640 --> 00:33:31,560
Speaker 1: helpful as you try to check this one off your

764
00:33:31,560 --> 00:33:32,000
Speaker 1: to do list.

765
00:33:32,160 --> 00:33:35,480
Speaker 2: That's right, and especially Karis, she's got a couple questions here,

766
00:33:36,000 --> 00:33:38,280
Speaker 2: and we'll spend more time on I guess for a

767
00:33:38,280 --> 00:33:40,920
Speaker 2: second question. But first, what do you do with your

768
00:33:40,960 --> 00:33:43,120
Speaker 2: old four to one K? Well, I love the idea

769
00:33:43,120 --> 00:33:45,479
Speaker 2: of rolling it into your current employer's four O onin

770
00:33:45,560 --> 00:33:49,200
Speaker 2: K as long as they accept rollovers from a previous

771
00:33:49,200 --> 00:33:51,640
Speaker 2: four and K and that they're with one of our

772
00:33:51,680 --> 00:33:56,960
Speaker 2: favorite low cost brokerages like Vanguard or Fidelity, Chuck Charles Schwab.

773
00:33:57,160 --> 00:33:59,440
Speaker 1: They count those are three good ones as well, they're

774
00:33:59,480 --> 00:33:59,880
Speaker 1: big ones.

775
00:34:00,160 --> 00:34:02,320
Speaker 2: And the great thing about keeping the money in a

776
00:34:02,360 --> 00:34:05,000
Speaker 2: four to one K instead of an IRA, though, is

777
00:34:05,000 --> 00:34:08,640
Speaker 2: your ability to do backdoor ROTH contributions, which we'll get

778
00:34:08,680 --> 00:34:10,600
Speaker 2: into here in a minute. But if you're current four

779
00:34:10,640 --> 00:34:12,920
Speaker 2: one K or the new four one K here, if

780
00:34:12,960 --> 00:34:15,479
Speaker 2: it doesn't have access to low cost funds, then you'll

781
00:34:15,480 --> 00:34:18,080
Speaker 2: either want to keep those old funds back where they

782
00:34:18,120 --> 00:34:21,680
Speaker 2: are or stick them into a traditional IRA, but the

783
00:34:21,840 --> 00:34:25,320
Speaker 2: latter could create some some frustrating tax implications in the future.

784
00:34:25,400 --> 00:34:29,040
Speaker 2: We'll kind of dive into this like a fistfight here.

785
00:34:29,440 --> 00:34:33,040
Speaker 1: There's a lot of exactly a lot of punches coming

786
00:34:33,040 --> 00:34:34,920
Speaker 1: from different angles here that you got to consider. And

787
00:34:34,960 --> 00:34:38,279
Speaker 1: you're right, Matt, like, it's all about where the money is,

788
00:34:38,360 --> 00:34:40,520
Speaker 1: and is the money with the low cost brokers that

789
00:34:40,640 --> 00:34:43,600
Speaker 1: gives you access to those really ridiculously low cost ETFs

790
00:34:43,600 --> 00:34:46,839
Speaker 1: some mutual funds then cool. Then yeah, then totally send

791
00:34:46,840 --> 00:34:48,880
Speaker 1: that money over there, or if it's currently with a

792
00:34:49,000 --> 00:34:52,960
Speaker 1: ridiculously low cost provider, then yeah, I don't mind keeping

793
00:34:53,000 --> 00:34:55,480
Speaker 1: it there either. But it's all about the fees and

794
00:34:55,520 --> 00:34:57,840
Speaker 1: minimization of those fees. And let's talk about roths for

795
00:34:57,840 --> 00:35:00,920
Speaker 1: a second, Carol, we want you to keep contributing directly

796
00:35:00,960 --> 00:35:03,000
Speaker 1: to a roth Ira as long as you can, right

797
00:35:03,000 --> 00:35:05,200
Speaker 1: if you exceed the income limits in the near future

798
00:35:05,480 --> 00:35:07,080
Speaker 1: of course. Kind of like I mentioned earlier, that's a

799
00:35:07,080 --> 00:35:09,640
Speaker 1: great thing. I kind of wish that those income limits

800
00:35:09,640 --> 00:35:12,440
Speaker 1: were removed completely, because given the workarounds that we're going

801
00:35:12,520 --> 00:35:14,440
Speaker 1: to discuss here in just a sec and the fairly

802
00:35:14,480 --> 00:35:17,160
Speaker 1: tight contribution caps, like you can't contribute more than seven

803
00:35:17,200 --> 00:35:20,799
Speaker 1: thousand dollars anyway, why not let everyone participate? Why kind

804
00:35:20,840 --> 00:35:23,560
Speaker 1: of put those income limits in the phase out anyway?

805
00:35:23,560 --> 00:35:25,600
Speaker 1: It just kind of makes it more of a hassle,

806
00:35:25,760 --> 00:35:28,480
Speaker 1: more annoying for people. And of course, even though it

807
00:35:28,640 --> 00:35:31,600
Speaker 1: seemingly cuts off access to investing in a roth Ira,

808
00:35:32,040 --> 00:35:35,200
Speaker 1: it's well worth it to make more money. But it's

809
00:35:35,239 --> 00:35:37,239
Speaker 1: kind of like Matt, when people complain about taxes as

810
00:35:37,320 --> 00:35:39,319
Speaker 1: or income grows, they are like, you know what, I think,

811
00:35:39,360 --> 00:35:41,600
Speaker 1: I'm just going to like reduce my income so I

812
00:35:41,640 --> 00:35:43,839
Speaker 1: don't pay as much in taxes, or they moan about

813
00:35:43,840 --> 00:35:45,759
Speaker 1: paying capital gains taxes when they sell an asset that's

814
00:35:45,840 --> 00:35:49,160
Speaker 1: risen in value. It's not like paying taxes is my

815
00:35:49,200 --> 00:35:51,160
Speaker 1: favorite thing. Like every time when I'm paying quarterly taxes.

816
00:35:51,160 --> 00:35:52,800
Speaker 1: I don't have a smile on my face, but I

817
00:35:52,840 --> 00:35:54,759
Speaker 1: also think of it as a success fee, right, and

818
00:35:55,360 --> 00:35:59,239
Speaker 1: losing direct wroth contribution access is similar. It means you've

819
00:35:59,239 --> 00:36:01,680
Speaker 1: been able to elevate your income in a significant way,

820
00:36:01,840 --> 00:36:03,920
Speaker 1: and so losing your ability to contribute to that fund

821
00:36:04,320 --> 00:36:05,960
Speaker 1: means you're crushing it exactly.

822
00:36:06,080 --> 00:36:09,120
Speaker 2: Yeah, and Kara she also so she asked what happens

823
00:36:09,160 --> 00:36:11,640
Speaker 2: when she does end up making too much money? And

824
00:36:11,680 --> 00:36:13,439
Speaker 2: so I guess the way I interpreted the question too,

825
00:36:13,480 --> 00:36:15,399
Speaker 2: is that what happens to the money that I've been

826
00:36:15,480 --> 00:36:18,120
Speaker 2: contributing to my roth ira that I no longer have

827
00:36:18,160 --> 00:36:21,480
Speaker 2: access to, Well, you no longer have access to contribute

828
00:36:21,480 --> 00:36:23,319
Speaker 2: to it, So the money you have invested it just

829
00:36:23,440 --> 00:36:26,120
Speaker 2: hangs out there and still do what it's saying growing exactly.

830
00:36:26,160 --> 00:36:28,480
Speaker 2: So you don't have to worry about that or anything.

831
00:36:28,800 --> 00:36:31,839
Speaker 2: But we mentioned the back door wroth workaround. Let's talk

832
00:36:31,840 --> 00:36:34,920
Speaker 2: about how to proceed maybe a few years down the road,

833
00:36:35,440 --> 00:36:37,759
Speaker 2: if you still want to get money into a roth

834
00:36:37,840 --> 00:36:40,480
Speaker 2: ira but your income's not going to allow it, we'll

835
00:36:40,520 --> 00:36:42,880
Speaker 2: go in the back door wroth route. That adds an

836
00:36:42,880 --> 00:36:46,200
Speaker 2: extra step, but it's actually pretty simple. Basically, you make

837
00:36:46,239 --> 00:36:50,359
Speaker 2: a non deductible contribution to a traditional IRA and then

838
00:36:50,400 --> 00:36:55,360
Speaker 2: you convert that contribution directly into a wroth ira afterwards.

839
00:36:54,400 --> 00:36:57,640
Speaker 2: It's it's like a few extra clicks of the mouse

840
00:36:57,719 --> 00:37:00,319
Speaker 2: when you when you make the trainsers. But it is

841
00:37:00,360 --> 00:37:03,440
Speaker 2: truly that easy. And like it almost sounds like money laundering.

842
00:37:03,680 --> 00:37:04,920
Speaker 2: It sounds like something you shouldn't be allowed to do.

843
00:37:04,960 --> 00:37:06,480
Speaker 2: You're like, wait, I thought there were income too. I

844
00:37:06,520 --> 00:37:07,759
Speaker 2: can still stick money in a row, but first you

845
00:37:07,800 --> 00:37:09,120
Speaker 2: stick it in this account and then you move it

846
00:37:09,160 --> 00:37:11,279
Speaker 2: over to this account. It sounds kind of shady, but

847
00:37:11,320 --> 00:37:14,680
Speaker 2: it's perfectly legal. But there are a couple of specifics

848
00:37:14,680 --> 00:37:17,279
Speaker 2: that you need to be aware of, especially because of

849
00:37:17,280 --> 00:37:18,600
Speaker 2: that old four to one k.

850
00:37:18,960 --> 00:37:21,640
Speaker 1: That's right. It seems like it should be illegal, but

851
00:37:21,760 --> 00:37:26,400
Speaker 1: it's perfectly legal. And it's incredibly simple. That is, you

852
00:37:26,440 --> 00:37:28,920
Speaker 1: can complicate it. That is, in less, the funds in

853
00:37:28,960 --> 00:37:33,200
Speaker 1: your traditional ira are blended, right, so if you've made

854
00:37:33,320 --> 00:37:36,960
Speaker 1: deductible and non deductible contributions to your IRA, things get

855
00:37:37,080 --> 00:37:39,640
Speaker 1: a bit more complicated, that's right. This is when you

856
00:37:39,680 --> 00:37:41,840
Speaker 1: run into something called the pro rattur rule, and it

857
00:37:41,880 --> 00:37:43,920
Speaker 1: takes a pretty high degree of record keeping to be

858
00:37:43,960 --> 00:37:46,040
Speaker 1: able to pull this off properly. And if that's not

859
00:37:46,080 --> 00:37:48,040
Speaker 1: you then to be worth checking out. I think talking

860
00:37:48,040 --> 00:37:50,239
Speaker 1: to a financial advisor on how to how to do

861
00:37:50,280 --> 00:37:52,920
Speaker 1: this maneuver correctly. But this is why we're fans of

862
00:37:52,960 --> 00:37:54,759
Speaker 1: just letting the money that's currently in your four one

863
00:37:54,840 --> 00:37:57,919
Speaker 1: K keep hanging out there, right or putting it into

864
00:37:58,000 --> 00:38:00,359
Speaker 1: the new four one K, but keeping it categorizes one

865
00:38:00,400 --> 00:38:02,840
Speaker 1: K dollars until you're ready to pull the trigger on

866
00:38:02,840 --> 00:38:05,880
Speaker 1: a ROTH conversion. That is going to make the most sense,

867
00:38:06,080 --> 00:38:09,200
Speaker 1: because once money's in a traditional IRA, the backdoor WROTH

868
00:38:09,239 --> 00:38:11,240
Speaker 1: maneuver becomes more of a hassle.

869
00:38:11,320 --> 00:38:11,480
Speaker 3: Yeah.

870
00:38:11,520 --> 00:38:13,520
Speaker 2: Well, and another reason she might just want those funds

871
00:38:13,560 --> 00:38:15,880
Speaker 2: to sit around is because once you convert those funds

872
00:38:15,880 --> 00:38:18,439
Speaker 2: into a ROTH, you're paying taxes on the money. Because

873
00:38:18,440 --> 00:38:20,400
Speaker 2: she was able to initially contribute to the four one

874
00:38:20,480 --> 00:38:23,239
Speaker 2: K with pre tax dollars and so you have to

875
00:38:23,320 --> 00:38:25,080
Speaker 2: keep that into account too. What is this going to

876
00:38:25,160 --> 00:38:29,400
Speaker 2: do to your tax bracket? But something else worth considering, Kara,

877
00:38:29,520 --> 00:38:33,280
Speaker 2: should you even prioritize a roth IRA if your income

878
00:38:33,400 --> 00:38:36,080
Speaker 2: continues to grow, Because again, if you find your way

879
00:38:36,080 --> 00:38:39,480
Speaker 2: into this upper echelon tax bracket, you might want to

880
00:38:39,520 --> 00:38:44,040
Speaker 2: consider some other ways of reducing your taxable income now,

881
00:38:44,280 --> 00:38:46,680
Speaker 2: so for instance, maxing out a traditional four win K.

882
00:38:47,560 --> 00:38:49,640
Speaker 2: I'm not sure if she mentioned that she's doing that,

883
00:38:49,680 --> 00:38:52,200
Speaker 2: but that might be a better idea than say, splitting

884
00:38:52,239 --> 00:38:54,840
Speaker 2: your funds between your four one K and your WROTH.

885
00:38:55,200 --> 00:38:57,640
Speaker 2: This is again, this is food for thought because roth

886
00:38:57,680 --> 00:38:59,920
Speaker 2: iras are great, we love them, but it might not

887
00:39:00,200 --> 00:39:03,040
Speaker 2: be as great if you are, let's say, in a

888
00:39:03,120 --> 00:39:05,800
Speaker 2: thirty two percent or a thirty five percent tax bracket.

889
00:39:05,800 --> 00:39:07,440
Speaker 2: If that's the case, you want to do what you

890
00:39:07,480 --> 00:39:10,120
Speaker 2: can to get yourself out of those tax brackets.

891
00:39:10,120 --> 00:39:12,440
Speaker 1: That's kind of takes me back to our conversation with

892
00:39:12,480 --> 00:39:14,439
Speaker 1: Sean Mulaney, I don't know, four or five months back,

893
00:39:14,719 --> 00:39:18,200
Speaker 1: who is the five tax guy, a tax planning expert,

894
00:39:18,200 --> 00:39:20,280
Speaker 1: and he talks about how, yeah, when you can contribute

895
00:39:20,320 --> 00:39:23,319
Speaker 1: directly to the WROTH, if you're in the higher income zone,

896
00:39:23,640 --> 00:39:25,440
Speaker 1: will you kind of lose your ability to do some

897
00:39:25,480 --> 00:39:27,640
Speaker 1: of that tax planning. And if you contribute to those

898
00:39:27,640 --> 00:39:29,680
Speaker 1: tax advantage accounts, you're getting the tax break now, and

899
00:39:29,680 --> 00:39:32,440
Speaker 1: you can always kind of choose your own adventure when

900
00:39:32,440 --> 00:39:34,439
Speaker 1: it comes to your tax rate. In the future. Maybe

901
00:39:34,520 --> 00:39:36,799
Speaker 1: let's say you decide to take a sabbaticle, then you

902
00:39:36,960 --> 00:39:40,400
Speaker 1: maybe turn some of those traditional dollars into row dollars

903
00:39:40,400 --> 00:39:42,799
Speaker 1: in that year when you're gonna pay have bear less

904
00:39:42,800 --> 00:39:45,479
Speaker 1: of a tax burden when you do that, right, right,

905
00:39:45,920 --> 00:39:48,799
Speaker 1: last thing I want to mention here there are other

906
00:39:48,880 --> 00:39:51,920
Speaker 1: ways to lower your AGI so you can still qualify

907
00:39:51,960 --> 00:39:54,799
Speaker 1: for a WROTH. So it's just worth mentioning. As your

908
00:39:54,800 --> 00:39:56,680
Speaker 1: income increases, well, there are things you can do to

909
00:39:56,680 --> 00:39:59,960
Speaker 1: get the adjusted gross income down in order to make

910
00:40:00,200 --> 00:40:03,600
Speaker 1: you're still WROTH eligible. So if you itemize your deductions,

911
00:40:03,719 --> 00:40:05,960
Speaker 1: donating more money in a given you, for instance, could

912
00:40:06,000 --> 00:40:09,120
Speaker 1: help get you back below that threshold. Contributing more to

913
00:40:09,200 --> 00:40:11,560
Speaker 1: a traditional four h one K account at your work

914
00:40:11,800 --> 00:40:15,080
Speaker 1: could also help you get back under that contribution threshold too,

915
00:40:15,440 --> 00:40:18,000
Speaker 1: So it's just more thinking about that. Just because your

916
00:40:18,000 --> 00:40:21,640
Speaker 1: income goes up doesn't necessarily mean your adjusted gross income

917
00:40:21,960 --> 00:40:23,640
Speaker 1: has to go up, and so you might still be

918
00:40:23,680 --> 00:40:25,960
Speaker 1: able to find yourself and it's going to require probably

919
00:40:26,000 --> 00:40:28,800
Speaker 1: being more generous or being investing more of your money,

920
00:40:29,000 --> 00:40:32,680
Speaker 1: but those things can help you still retain WROTH eligibility.

921
00:40:32,800 --> 00:40:35,040
Speaker 2: Yeah, I think the idea is to keep your options open,

922
00:40:35,320 --> 00:40:38,480
Speaker 2: because so much of making the most optimized decision comes

923
00:40:38,520 --> 00:40:40,360
Speaker 2: down to you knowing the future, and very few of

924
00:40:40,440 --> 00:40:42,360
Speaker 2: us know how much we're going to make off in

925
00:40:42,360 --> 00:40:45,600
Speaker 2: the future, especially if we're still in our wealth building

926
00:40:45,640 --> 00:40:47,919
Speaker 2: phase of life. But Kara, we hope that gets you

927
00:40:48,000 --> 00:40:50,640
Speaker 2: pointed in the right direction. Joel, we've got another question

928
00:40:50,680 --> 00:40:52,239
Speaker 2: to get to. We got more content here at how

929
00:40:52,280 --> 00:40:55,200
Speaker 2: to Money. We're gonna talk about the risks of health sharing.

930
00:40:55,280 --> 00:40:56,920
Speaker 2: We'll get to that right after this.

931
00:41:04,760 --> 00:41:06,640
Speaker 1: All right, Matt, we're back. It's time we got to

932
00:41:06,640 --> 00:41:08,839
Speaker 1: get to the Facebook question of the week. So much

933
00:41:08,840 --> 00:41:10,719
Speaker 1: good content and the how to Money Facebook group, we

934
00:41:10,840 --> 00:41:13,640
Speaker 1: decided to, yeah, take some of those questions, put them

935
00:41:13,640 --> 00:41:16,319
Speaker 1: on the podcast. This one comes from Cat. She said,

936
00:41:16,400 --> 00:41:19,840
Speaker 1: has anyone ever used a health share instead of health insurance?

937
00:41:20,040 --> 00:41:22,640
Speaker 1: I'm self employed. I recently learned about a health share

938
00:41:22,719 --> 00:41:25,600
Speaker 1: company called crowd Health. I'm a pretty healthy individual and

939
00:41:25,640 --> 00:41:28,400
Speaker 1: this seems like a really good option for me.

940
00:41:28,840 --> 00:41:31,120
Speaker 2: Yeah. Well, first of all, we're gonna jump into it.

941
00:41:31,120 --> 00:41:33,799
Speaker 1: I'm just gonna say this is something we've written about,

942
00:41:33,840 --> 00:41:37,440
Speaker 1: we've talked about. We try to temper our enthusiasm because

943
00:41:37,560 --> 00:41:40,040
Speaker 1: you and I are heal for everybody. They're not for everybody, yeah,

944
00:41:40,080 --> 00:41:41,400
Speaker 1: but it can make sense for a lot of.

945
00:41:41,400 --> 00:41:44,680
Speaker 2: People, and especially for her, she says, she's a healthy individual.

946
00:41:44,960 --> 00:41:48,759
Speaker 2: Like that's who these health sharing accounts are made for.

947
00:41:49,120 --> 00:41:51,120
Speaker 2: And as answer for the folks out there who are

948
00:41:51,120 --> 00:41:53,960
Speaker 2: who are self employed and they don't have benefits from

949
00:41:53,960 --> 00:41:56,400
Speaker 2: a company who's covering all of your health care costs.

950
00:41:56,400 --> 00:41:59,319
Speaker 1: If you're self employed and you've been fairly successful when

951
00:41:59,360 --> 00:42:01,920
Speaker 1: it comes to income, I would say health sharing accounts

952
00:42:01,920 --> 00:42:04,000
Speaker 1: this is worth looking into. This is for you because

953
00:42:04,200 --> 00:42:06,200
Speaker 1: you're probably like shaking your fist at the sky every

954
00:42:06,200 --> 00:42:09,080
Speaker 1: time you pay your health insurance premium, and this is

955
00:42:09,160 --> 00:42:12,359
Speaker 1: one way to, yeah, make sure that's not as big

956
00:42:12,360 --> 00:42:14,040
Speaker 1: of a line item in your budget.

957
00:42:14,080 --> 00:42:16,919
Speaker 2: Minimize that costs, especially when you're hardly using it, because again,

958
00:42:17,000 --> 00:42:20,879
Speaker 2: you are fortunate enough to not have any health complications.

959
00:42:20,920 --> 00:42:22,480
Speaker 2: My family and I we've been with a health sharing

960
00:42:22,520 --> 00:42:26,560
Speaker 2: company now for over ten years, and honestly, we're probably

961
00:42:26,560 --> 00:42:28,920
Speaker 2: gonna stick with it for years to come unless I

962
00:42:29,000 --> 00:42:31,040
Speaker 2: end up, you know, with like some sort of traditional

963
00:42:31,400 --> 00:42:34,640
Speaker 2: job with W two employment with benefits. Not likely for

964
00:42:34,680 --> 00:42:35,880
Speaker 2: that to happen, to be honest.

965
00:42:35,640 --> 00:42:37,600
Speaker 1: Man, I could see you being a barista. But I

966
00:42:37,640 --> 00:42:39,000
Speaker 1: don't know do they do you get benefits?

967
00:42:39,040 --> 00:42:40,839
Speaker 2: Not at the I guess depends if your Starbucks are

968
00:42:40,840 --> 00:42:43,600
Speaker 2: not at not if you're likely at the local good

969
00:42:43,640 --> 00:42:46,960
Speaker 2: coffee shop. This slinging the good stuff. So is it

970
00:42:47,160 --> 00:42:49,719
Speaker 2: frugaler cheap to go and work for a star bus

971
00:42:49,719 --> 00:42:51,759
Speaker 2: tell your soul and work for sauce? Yeah it would,

972
00:42:51,960 --> 00:42:56,120
Speaker 2: there'd be some soul self for sure. But uh yeah,

973
00:42:56,200 --> 00:42:58,839
Speaker 2: these health sharing plans, they're not for everyone. You need

974
00:42:58,880 --> 00:43:02,000
Speaker 2: to know their risks and and the main risk is

975
00:43:02,000 --> 00:43:05,160
Speaker 2: that health sharing companies essentially function on faith. And what

976
00:43:05,200 --> 00:43:07,719
Speaker 2: I mean by that is many are actually faith like

977
00:43:07,800 --> 00:43:12,040
Speaker 2: religion faith based crowd health actually isn't. But you're also

978
00:43:12,040 --> 00:43:14,720
Speaker 2: putting your faith in the system that this thing works

979
00:43:15,360 --> 00:43:17,839
Speaker 2: because it doesn't have the same federal oversight as a

980
00:43:17,880 --> 00:43:22,000
Speaker 2: traditional insurance company. And then let's say you don't meet

981
00:43:22,040 --> 00:43:24,759
Speaker 2: the rules outlined in the sharing agreement. You can find

982
00:43:24,760 --> 00:43:27,600
Speaker 2: yourself with a massive bill that they won't help you

983
00:43:27,680 --> 00:43:30,480
Speaker 2: to pay. And that's assuming that they have the money

984
00:43:30,480 --> 00:43:33,080
Speaker 2: on hand to pay it. That's one of the things

985
00:43:33,360 --> 00:43:36,160
Speaker 2: I mean. Granted, I've been with Meta share for over

986
00:43:36,200 --> 00:43:38,680
Speaker 2: ten years now and have never had any issues, but

987
00:43:38,880 --> 00:43:41,600
Speaker 2: Crowdhealth in particular, they're a newer company, and for me,

988
00:43:41,680 --> 00:43:43,920
Speaker 2: in my mind, that's the question I'm asking.

989
00:43:43,680 --> 00:43:45,120
Speaker 1: Myself is a lot a little more history.

990
00:43:45,239 --> 00:43:47,080
Speaker 2: Yeah, I hate that it's only been around for a

991
00:43:47,120 --> 00:43:49,600
Speaker 2: few years, Like it hasn't even been around since before

992
00:43:49,680 --> 00:43:51,799
Speaker 2: the pandemic. Like that kind of seemed like yesterday. But

993
00:43:51,840 --> 00:43:54,400
Speaker 2: what happens the next time there's a pandemic? What happens

994
00:43:54,400 --> 00:43:56,719
Speaker 2: when a bunch of people who have crowd Health they

995
00:43:56,760 --> 00:43:59,200
Speaker 2: all get sick and it drives up costs? What does

996
00:43:59,239 --> 00:44:03,080
Speaker 2: that do to quote unquote premiums? Does the company stay solvent?

997
00:44:03,160 --> 00:44:05,400
Speaker 2: These are questions I would be asking myself. Yeah, and

998
00:44:05,400 --> 00:44:07,839
Speaker 2: you mentioned something that's really important is that these are

999
00:44:07,880 --> 00:44:11,359
Speaker 2: not governed the way traditional health insurance companies are. They

1000
00:44:11,360 --> 00:44:13,440
Speaker 2: can just fold right, they are the same requirements, and

1001
00:44:13,480 --> 00:44:15,680
Speaker 2: so there is that risk that you are that you're

1002
00:44:15,719 --> 00:44:17,759
Speaker 2: putting up with. And so that was actually in the

1003
00:44:17,760 --> 00:44:20,680
Speaker 2: Facebook comments, meant that was one of the replies from

1004
00:44:20,719 --> 00:44:22,759
Speaker 2: a lot of people was like, uh, I don't know.

1005
00:44:22,840 --> 00:44:25,399
Speaker 2: These things like totally scare me. And I get it.

1006
00:44:25,800 --> 00:44:28,520
Speaker 1: I totally understand where you're coming from. But I also think, like,

1007
00:44:28,600 --> 00:44:30,520
Speaker 1: and we'll talk about this in a second. The trade

1008
00:44:30,520 --> 00:44:34,160
Speaker 1: offs and how much money you can save can be

1009
00:44:34,239 --> 00:44:36,360
Speaker 1: worth it for people. It's something you have to at

1010
00:44:36,440 --> 00:44:39,040
Speaker 1: least take into consideration. I will say for folks on

1011
00:44:39,080 --> 00:44:41,520
Speaker 1: the lower end of the income spectrum who don't get

1012
00:44:41,560 --> 00:44:46,440
Speaker 1: insurance via their employer, getting traditional insurance via healthcare dot gov,

1013
00:44:46,920 --> 00:44:48,360
Speaker 1: that can make the most sense. That can be the

1014
00:44:48,360 --> 00:44:51,319
Speaker 1: best way to go, largely because government subsidies are going

1015
00:44:51,360 --> 00:44:54,799
Speaker 1: to drive that price down significantly. Right, So if it

1016
00:44:54,840 --> 00:44:58,200
Speaker 1: were not for those subsidies, if those subsidies didn't exist,

1017
00:44:58,440 --> 00:45:01,319
Speaker 1: health insurance would be completely on affordable for all those

1018
00:45:01,320 --> 00:45:05,400
Speaker 1: folks too. But the generous subsidies really make it palatable.

1019
00:45:05,560 --> 00:45:08,560
Speaker 1: And so if you make a fairly high income, that's

1020
00:45:08,640 --> 00:45:10,239
Speaker 1: not going to be the case. If you try to

1021
00:45:10,280 --> 00:45:12,399
Speaker 1: go buy a policy on healthcare dot gov, if you're

1022
00:45:12,440 --> 00:45:15,120
Speaker 1: making like, let's say, two hundred grand a year and

1023
00:45:15,160 --> 00:45:17,360
Speaker 1: you've got a family of five, you're going to find

1024
00:45:17,520 --> 00:45:21,080
Speaker 1: that you are shocked by the premiums you're quoted. I

1025
00:45:21,080 --> 00:45:22,719
Speaker 1: took a look a while back, Matt, and it was

1026
00:45:22,760 --> 00:45:25,600
Speaker 1: going to cost more than twenty five thousand bucks a

1027
00:45:25,719 --> 00:45:28,440
Speaker 1: year to ensure our family of five. God yeah, and

1028
00:45:28,440 --> 00:45:30,640
Speaker 1: that was for a plan with a really high deductible.

1029
00:45:30,640 --> 00:45:32,799
Speaker 1: So it's not like it was this Cadillac Gold Plan

1030
00:45:32,880 --> 00:45:35,400
Speaker 1: or anything like that. It was even better as the

1031
00:45:35,400 --> 00:45:38,439
Speaker 1: platinum Platinum Yeah yeah, yeah, So it wasn't. It wasn't

1032
00:45:38,440 --> 00:45:40,800
Speaker 1: the higher echelon. It was. It was essentially one of

1033
00:45:40,840 --> 00:45:43,200
Speaker 1: those crummy bronze plans. And I was like, listen, I

1034
00:45:43,280 --> 00:45:45,040
Speaker 1: might really gonna be forking over that much money. It

1035
00:45:45,080 --> 00:45:47,680
Speaker 1: was the red was the Georgia Red Clay Plan. Yeah,

1036
00:45:48,400 --> 00:45:50,600
Speaker 1: like this doesn't sound great, and so there was just

1037
00:45:50,640 --> 00:45:52,320
Speaker 1: no way. So there was no way We're going to

1038
00:45:52,400 --> 00:45:54,120
Speaker 1: do that, pay that much money for and still have

1039
00:45:54,200 --> 00:45:56,160
Speaker 1: that high of a deductible, and so, you know, health

1040
00:45:56,200 --> 00:45:58,640
Speaker 1: sharing it almost kind of felt like our only only

1041
00:45:58,680 --> 00:46:01,600
Speaker 1: real option. Lots of folks find themselves I think in

1042
00:46:01,600 --> 00:46:03,719
Speaker 1: that position. Maybe that's where Cat is as well. Maybe

1043
00:46:03,760 --> 00:46:06,440
Speaker 1: even just for a single individual, getting that quote on

1044
00:46:06,520 --> 00:46:09,000
Speaker 1: healthcare dot cub was just like mind blowing, heart to stomach,

1045
00:46:09,320 --> 00:46:11,040
Speaker 1: and I know it is for a lot of folks.

1046
00:46:11,080 --> 00:46:13,959
Speaker 1: I mean, health insurance obviously not cheap in this country.

1047
00:46:14,040 --> 00:46:16,200
Speaker 2: Yeah, it's not cheap, and I think unfortunately we have

1048
00:46:16,239 --> 00:46:18,600
Speaker 2: an improper view of insurance in the role that it

1049
00:46:18,600 --> 00:46:20,640
Speaker 2: plays in our lives because it's there to mitigate risk.

1050
00:46:21,120 --> 00:46:23,400
Speaker 2: But like you said, you're looking at more than twenty

1051
00:46:23,400 --> 00:46:26,080
Speaker 2: five thousand dollars. It's also financially risky to spend that

1052
00:46:26,200 --> 00:46:29,719
Speaker 2: much money on health insurance when it's likely not necessarily

1053
00:46:29,719 --> 00:46:31,680
Speaker 2: going to be something that you take full advantage of.

1054
00:46:31,640 --> 00:46:35,640
Speaker 1: At least historically. And yeah, hopefully fingers crossed that continues

1055
00:46:35,680 --> 00:46:36,080
Speaker 1: to be the case.

1056
00:46:36,080 --> 00:46:37,920
Speaker 2: It's funny because like we were talking was it earlier

1057
00:46:37,920 --> 00:46:40,640
Speaker 2: when we were talking with Lindy about like you kind

1058
00:46:40,640 --> 00:46:42,839
Speaker 2: of brought up safety and I feel like we do

1059
00:46:42,920 --> 00:46:46,359
Speaker 2: live in a culture where safety ism is valued above

1060
00:46:46,600 --> 00:46:49,880
Speaker 2: anything else, including taking risks when it Like, man, this

1061
00:46:49,960 --> 00:46:51,880
Speaker 2: is going to sound like it's coming out as like

1062
00:46:52,000 --> 00:46:55,520
Speaker 2: irresponsible advice, but like, bottom line, we cannot mitigate all

1063
00:46:55,520 --> 00:46:58,440
Speaker 2: the different risks in our lives, and think about what

1064
00:46:58,520 --> 00:47:00,919
Speaker 2: you can do just walking around bubble like it would

1065
00:47:00,920 --> 00:47:03,080
Speaker 2: probably cost our family even more than twenty five thousand

1066
00:47:03,080 --> 00:47:04,879
Speaker 2: dollars if that was your quote, Like we've got one

1067
00:47:04,960 --> 00:47:06,799
Speaker 2: one additional number rows.

1068
00:47:06,840 --> 00:47:08,400
Speaker 1: I saw this was last year, so like if I

1069
00:47:08,400 --> 00:47:09,600
Speaker 1: can't if I went in and look this year, I

1070
00:47:09,640 --> 00:47:10,319
Speaker 1: bet it's a lot more.

1071
00:47:10,360 --> 00:47:12,280
Speaker 2: Oh my gosh, that's crazy. Like, I'm like, I would

1072
00:47:12,280 --> 00:47:15,759
Speaker 2: be looking at spending more than twenty thousand dollars more

1073
00:47:16,200 --> 00:47:19,320
Speaker 2: just for health insurance or health coverage for for our family.

1074
00:47:19,360 --> 00:47:21,840
Speaker 1: And that's not that's not even necessarily going to mitigate

1075
00:47:21,880 --> 00:47:23,920
Speaker 1: the bills you experience on a on a monthly or

1076
00:47:24,000 --> 00:47:26,200
Speaker 1: annual basis most of the time. Yeah, you might get

1077
00:47:26,239 --> 00:47:28,120
Speaker 1: the copaid, you might save a few hundred bucks, but come.

1078
00:47:28,040 --> 00:47:30,719
Speaker 2: On, but think about just, oh man, the other things

1079
00:47:30,719 --> 00:47:32,239
Speaker 2: that you could do with that money. Think about all

1080
00:47:32,239 --> 00:47:35,399
Speaker 2: the organic mattresses you could buy so many they keep

1081
00:47:35,480 --> 00:47:36,880
Speaker 2: you out of them. You could fill your home with it,

1082
00:47:37,000 --> 00:47:39,360
Speaker 2: keep you out of the hospital. But I mean this again,

1083
00:47:39,760 --> 00:47:41,760
Speaker 2: it's up to you as an individual and the risks

1084
00:47:41,760 --> 00:47:43,960
Speaker 2: that you're willing to take on. That being said, I

1085
00:47:43,960 --> 00:47:46,480
Speaker 2: feel like, especially like the younger generation, man, it seems

1086
00:47:46,480 --> 00:47:50,800
Speaker 2: that more and more folks are risk adverse. They're maybe

1087
00:47:50,840 --> 00:47:52,960
Speaker 2: in this case you, well, I guess you're not young anymore,

1088
00:47:53,000 --> 00:47:56,319
Speaker 2: but neither of us are young like like we used to.

1089
00:47:56,320 --> 00:47:57,680
Speaker 1: I called someone middle aged the other day and I

1090
00:47:57,719 --> 00:48:00,520
Speaker 1: was like, wait a second.

1091
00:47:59,400 --> 00:48:03,400
Speaker 2: That's me. But if you do opt to go the

1092
00:48:03,400 --> 00:48:05,799
Speaker 2: health sharing route, do get quotes out there from some

1093
00:48:05,840 --> 00:48:09,520
Speaker 2: of the different health sharing providers do a deep dive

1094
00:48:09,719 --> 00:48:13,320
Speaker 2: into the requirements, and Kat specifically was looking at crowd Health.

1095
00:48:14,120 --> 00:48:16,360
Speaker 2: They've got really good ratings over on trust pilots, so

1096
00:48:16,400 --> 00:48:18,600
Speaker 2: that's a great start, even though they are a newer company.

1097
00:48:19,440 --> 00:48:21,719
Speaker 2: I actually looked another model as well, and it's it

1098
00:48:21,800 --> 00:48:25,040
Speaker 2: is different than Meta share, than how ours work stroll.

1099
00:48:25,560 --> 00:48:29,359
Speaker 2: It's more it's very communal in nature. Again, go back

1100
00:48:29,400 --> 00:48:32,080
Speaker 2: to Lindy, maybe she'd be all about that Crunchy maybe

1101
00:48:32,200 --> 00:48:34,360
Speaker 2: that Crunchynola plan.

1102
00:48:34,480 --> 00:48:35,880
Speaker 1: I think it's cool too. I kind of like what

1103
00:48:35,920 --> 00:48:36,799
Speaker 1: crowdhealth is trying to do.

1104
00:48:36,840 --> 00:48:38,960
Speaker 2: Yeah, it's it's cool if you're down with that, but

1105
00:48:39,000 --> 00:48:41,520
Speaker 2: it's way more I don't know. It does kind of

1106
00:48:41,520 --> 00:48:43,520
Speaker 2: feel like you're on a commune, like it had more

1107
00:48:43,560 --> 00:48:47,600
Speaker 2: like crowdfund, like a GoFundMe kind of vibe to the

1108
00:48:47,640 --> 00:48:50,080
Speaker 2: way that they fund things, as opposed to some of

1109
00:48:50,080 --> 00:48:53,960
Speaker 2: the other faith based sharing plans that feel, though technically

1110
00:48:53,960 --> 00:48:56,840
Speaker 2: not insurance, they do feel a bit more like insurance

1111
00:48:57,000 --> 00:49:00,840
Speaker 2: in the way they operate. They have an equivalent monthly premium,

1112
00:49:00,880 --> 00:49:03,840
Speaker 2: they have an equivalent annual deductible. They just call it

1113
00:49:03,840 --> 00:49:06,279
Speaker 2: different things because they're technically not allowed to call it

1114
00:49:06,560 --> 00:49:10,960
Speaker 2: the quote unquote insurance terms, but it functions just like insurance.

1115
00:49:11,000 --> 00:49:13,000
Speaker 2: It's just not federally regulated.

1116
00:49:13,120 --> 00:49:15,120
Speaker 1: Yeah, I don't think you were hard at selling health

1117
00:49:15,120 --> 00:49:17,759
Speaker 1: sharing companies. And I think you would also agree that

1118
00:49:17,760 --> 00:49:20,399
Speaker 1: they're not for everyone. Yep, they've worked out well for us,

1119
00:49:20,440 --> 00:49:22,400
Speaker 1: and that does that mean they're always they will always

1120
00:49:22,400 --> 00:49:23,920
Speaker 1: continue to work out well for us? Does that mean

1121
00:49:23,920 --> 00:49:26,160
Speaker 1: that we aren't taking on additional risk? I think you

1122
00:49:26,200 --> 00:49:28,239
Speaker 1: and I would both admit we're taking on additional risk

1123
00:49:28,280 --> 00:49:30,840
Speaker 1: by doing this, But we're also mitigating financial risk to

1124
00:49:30,960 --> 00:49:34,560
Speaker 1: a certain extent, a certain financial exactly known risk. But

1125
00:49:34,560 --> 00:49:36,879
Speaker 1: then there's the unknown financial risk that we face if

1126
00:49:36,920 --> 00:49:39,040
Speaker 1: let's say Meta share kicks the bucket or something like that,

1127
00:49:39,680 --> 00:49:42,680
Speaker 1: unkown unknowns and we get a terrible disease right at

1128
00:49:42,680 --> 00:49:45,040
Speaker 1: the same time. Right, So there is for sure that

1129
00:49:45,160 --> 00:49:46,680
Speaker 1: risk we know we're taking on. As long as you

1130
00:49:46,760 --> 00:49:49,960
Speaker 1: go into that knowing that there are risks attached to it,

1131
00:49:50,040 --> 00:49:52,239
Speaker 1: I think I think that's important. That's part of why

1132
00:49:52,280 --> 00:49:54,560
Speaker 1: we were riding bike to work, right, so we don't

1133
00:49:54,560 --> 00:49:56,719
Speaker 1: get hit by a car honor bikes. I think it's

1134
00:49:56,719 --> 00:49:58,080
Speaker 1: also important too, if you're going to go with one

1135
00:49:58,120 --> 00:50:00,560
Speaker 1: of these health sharing companies to save up more ca right,

1136
00:50:00,600 --> 00:50:02,720
Speaker 1: because you know you're not going to have the luxury

1137
00:50:02,760 --> 00:50:04,880
Speaker 1: of copays to see the doctor, So every doctors is

1138
00:50:05,120 --> 00:50:07,440
Speaker 1: going to cost a bit more. Instead of thirty bucks,

1139
00:50:07,480 --> 00:50:09,440
Speaker 1: probably gonna be one hundred twenty five hundred fifty bucks

1140
00:50:09,440 --> 00:50:12,120
Speaker 1: for just a visit to a physician. You'll be paying

1141
00:50:12,239 --> 00:50:14,839
Speaker 1: cash rates, which actually aren't as awful as you might think.

1142
00:50:14,880 --> 00:50:16,600
Speaker 1: I guess, Matt, I was a little more worried about

1143
00:50:16,680 --> 00:50:17,960
Speaker 1: the kind of bills we were going to get when

1144
00:50:17,960 --> 00:50:19,759
Speaker 1: we would see a doctor. And every time they're like,

1145
00:50:19,800 --> 00:50:21,360
Speaker 1: oh no, the cash rates this, and I'm always like,

1146
00:50:21,680 --> 00:50:24,279
Speaker 1: oh wow, okay, that's great. I was expecting to pay more,

1147
00:50:24,760 --> 00:50:27,920
Speaker 1: and so, honestly, in some ways, this is actually how

1148
00:50:27,920 --> 00:50:28,719
Speaker 1: healthcare should work.

1149
00:50:28,880 --> 00:50:30,319
Speaker 2: Oh absolutely, If we all had to.

1150
00:50:30,280 --> 00:50:33,319
Speaker 1: Foot the bill for the full price of day to

1151
00:50:33,360 --> 00:50:35,600
Speaker 1: day health needs, health care wouldn't cost us nearly as

1152
00:50:35,680 --> 00:50:38,239
Speaker 1: much as it does. But healthcare has these It's weaved

1153
00:50:38,280 --> 00:50:41,160
Speaker 1: its tentacles into every little transaction, and that's part of

1154
00:50:41,160 --> 00:50:44,239
Speaker 1: what caused what has led to rising premium prices. Health

1155
00:50:44,239 --> 00:50:46,680
Speaker 1: sharing companies. They're not perfect. You and I will be

1156
00:50:46,680 --> 00:50:48,480
Speaker 1: the first to admit that but they can make sense.

1157
00:50:48,520 --> 00:50:50,759
Speaker 1: I think for folks who don't qualify for subsidies and

1158
00:50:50,760 --> 00:50:52,600
Speaker 1: who are willing to deal with the trade offs, and

1159
00:50:52,640 --> 00:50:55,640
Speaker 1: the savings truly can be substantial. I mean we're talking about, yeah,

1160
00:50:55,680 --> 00:50:59,399
Speaker 1: probably saving eighteen to twenty grand a year each of us.

1161
00:51:00,040 --> 00:51:02,440
Speaker 1: And that's a big deal and so significant. If it

1162
00:51:02,480 --> 00:51:04,400
Speaker 1: was two grand, guess what I'd go with the traditional

1163
00:51:04,400 --> 00:51:06,440
Speaker 1: health insurance. I'd pay the extra and to know that

1164
00:51:06,480 --> 00:51:10,479
Speaker 1: my risk was capped for sure, a federally mandated cap sure,

1165
00:51:10,760 --> 00:51:12,640
Speaker 1: I paid extra two grand. So I think that would

1166
00:51:12,680 --> 00:51:15,120
Speaker 1: make that would change things. But when you're talking about

1167
00:51:15,160 --> 00:51:17,640
Speaker 1: how significant the savings can be, it's at least worth

1168
00:51:17,680 --> 00:51:19,600
Speaker 1: looking into for a certain segment of the population.

1169
00:51:19,760 --> 00:51:23,560
Speaker 2: Absolutely. Yeah, So Cat, I hope we didn't steer you wrong, hopefully,

1170
00:51:23,760 --> 00:51:25,799
Speaker 2: because that's what I say. Tough here is we don't know,

1171
00:51:26,280 --> 00:51:29,520
Speaker 2: like none of us know what sort of health complications

1172
00:51:29,520 --> 00:51:31,400
Speaker 2: we might stumble into. You know what this is?

1173
00:51:31,680 --> 00:51:33,000
Speaker 1: You know what this is? A kin to, though to Matt,

1174
00:51:33,000 --> 00:51:34,960
Speaker 1: when someone says, oh, should I drop full coverage on

1175
00:51:35,200 --> 00:51:38,080
Speaker 1: my car? And then we say, well, according to the numbers,

1176
00:51:38,360 --> 00:51:40,320
Speaker 1: yes you should, as long as you have the savings

1177
00:51:40,360 --> 00:51:42,120
Speaker 1: in place. And blah blah blah. And then you know,

1178
00:51:42,200 --> 00:51:43,680
Speaker 1: two weeks later they get in a car accient and

1179
00:51:43,680 --> 00:51:44,040
Speaker 1: they're like.

1180
00:51:44,120 --> 00:51:46,000
Speaker 2: You guys told me to drop all coverage, and it's

1181
00:51:46,000 --> 00:51:46,839
Speaker 2: like the right thing to do.

1182
00:51:47,160 --> 00:51:49,360
Speaker 1: You're playing the numbers game. I mean, I raised my

1183
00:51:49,360 --> 00:51:52,440
Speaker 1: deductible sky high on my home, had a tree fall

1184
00:51:52,440 --> 00:51:54,080
Speaker 1: through the root for me? Yeah, it does it feel

1185
00:51:54,120 --> 00:51:55,200
Speaker 1: like the right thing after the fact?

1186
00:51:55,480 --> 00:51:55,600
Speaker 5: No?

1187
00:51:55,760 --> 00:51:57,120
Speaker 1: Was it still the right thing to do on the

1188
00:51:57,120 --> 00:51:57,480
Speaker 1: front end?

1189
00:51:57,560 --> 00:52:01,120
Speaker 2: Yes? So the question is are is your deductible still

1190
00:52:01,120 --> 00:52:03,080
Speaker 2: sky high? It is? There? You go, boy, you just

1191
00:52:03,120 --> 00:52:04,440
Speaker 2: gotta make sure you got the money on hand to

1192
00:52:04,480 --> 00:52:06,879
Speaker 2: cover that deductible or something terrible.

1193
00:52:06,920 --> 00:52:08,120
Speaker 1: And I'm just cutting all my trees down.

1194
00:52:08,120 --> 00:52:09,920
Speaker 2: Now let's get back to the beer.

1195
00:52:10,280 --> 00:52:12,640
Speaker 1: You say it this time, no maste, I PA.

1196
00:52:12,800 --> 00:52:14,360
Speaker 2: How do you get the You gotta get the no

1197
00:52:15,360 --> 00:52:16,840
Speaker 2: no mastee? I p A.

1198
00:52:17,040 --> 00:52:19,520
Speaker 1: Yeah, this is anome doing yoga here.

1199
00:52:19,560 --> 00:52:21,560
Speaker 2: I love it. He's sitting on a hop. It's a

1200
00:52:21,600 --> 00:52:25,120
Speaker 2: Belgian style ip A. What'd you think this is a

1201
00:52:25,160 --> 00:52:27,080
Speaker 2: beer from Moat Mountain. Yeah? I like it.

1202
00:52:27,080 --> 00:52:30,600
Speaker 1: I like the the blend of I PA of hoppy

1203
00:52:30,920 --> 00:52:33,160
Speaker 1: and Belgian yeasts. I thought it was a nice little combo.

1204
00:52:33,760 --> 00:52:36,279
Speaker 1: It was a little sweet, a little peppery, very very

1205
00:52:36,360 --> 00:52:38,839
Speaker 1: unique style beer. So always fun to try something that's

1206
00:52:38,840 --> 00:52:39,839
Speaker 1: a little off the beaten path.

1207
00:52:40,000 --> 00:52:42,640
Speaker 2: Yeah, and these guys are out of where is it?

1208
00:52:42,640 --> 00:52:43,440
Speaker 2: Is it New Hampshire?

1209
00:52:43,560 --> 00:52:44,760
Speaker 1: That's right, Oh it is Okay.

1210
00:52:44,960 --> 00:52:46,880
Speaker 2: I thought I was making that up. They got some

1211
00:52:46,920 --> 00:52:48,759
Speaker 2: good breweries up there, but I felt like they were

1212
00:52:48,800 --> 00:52:51,440
Speaker 2: able to ride that line between the i PA and

1213
00:52:51,480 --> 00:52:53,360
Speaker 2: Belgian really well. I felt like it, sut to me.

1214
00:52:53,480 --> 00:52:55,840
Speaker 2: It started out as the ip A for sure, and

1215
00:52:55,880 --> 00:52:58,040
Speaker 2: then it finished because like on the front end you

1216
00:52:58,080 --> 00:53:00,839
Speaker 2: get sort of like that sharp those sharp notes from

1217
00:53:00,840 --> 00:53:03,400
Speaker 2: the hops. You kind of get that peppery pepperiness, but

1218
00:53:03,440 --> 00:53:07,320
Speaker 2: then it finishes off more with like the sweet yeasts

1219
00:53:07,360 --> 00:53:08,480
Speaker 2: that you get from the Belgian.

1220
00:53:08,560 --> 00:53:10,239
Speaker 1: It's like a like moves from the front of your

1221
00:53:10,239 --> 00:53:11,880
Speaker 1: tongue to the back of your tongue. It's like a mullet.

1222
00:53:12,000 --> 00:53:15,160
Speaker 2: It's a IPA in the front and Belgian in the back.

1223
00:53:15,200 --> 00:53:16,880
Speaker 1: I'll take you to I agree with that, yep. I

1224
00:53:16,920 --> 00:53:18,520
Speaker 1: think that's a good a good way of describing you

1225
00:53:18,520 --> 00:53:20,279
Speaker 1: think they'd be I don't know they would love that

1226
00:53:20,320 --> 00:53:21,320
Speaker 1: about that description.

1227
00:53:21,480 --> 00:53:23,279
Speaker 2: I think you're right down here in the South. I

1228
00:53:23,280 --> 00:53:25,480
Speaker 2: feel like the mullet has come full circle. Actually I

1229
00:53:25,480 --> 00:53:27,799
Speaker 2: mean it came full circle like ten years ago where

1230
00:53:27,840 --> 00:53:30,480
Speaker 2: people were embracing it again. But I feel like that

1231
00:53:30,840 --> 00:53:33,319
Speaker 2: this is high praise. Imbuse your inner Joe dirt map.

1232
00:53:33,520 --> 00:53:35,600
Speaker 2: That's gonna be it for this episode.

1233
00:53:35,600 --> 00:53:35,920
Speaker 4: Buddy.

1234
00:53:36,239 --> 00:53:38,200
Speaker 2: You can find our show notes up on the website

1235
00:53:38,200 --> 00:53:40,680
Speaker 2: at how toomoney dot com. There is where you can

1236
00:53:40,719 --> 00:53:43,600
Speaker 2: also find our credit card tool that's always up to

1237
00:53:43,680 --> 00:53:46,759
Speaker 2: date with the latest offers and all the different details

1238
00:53:46,880 --> 00:53:48,800
Speaker 2: that you might be looking for when it comes to

1239
00:53:48,920 --> 00:53:51,840
Speaker 2: strategically using credit cards. And you can also sign up

1240
00:53:51,840 --> 00:53:54,000
Speaker 2: for the newsletter up there on the website as well,

1241
00:53:54,040 --> 00:53:56,680
Speaker 2: howdomoney dot com Forward slash newsletter.

1242
00:53:56,760 --> 00:53:59,239
Speaker 1: I've heard and it's the greatest personal finance newsletter on

1243
00:53:59,280 --> 00:53:59,919
Speaker 1: the face of the earth.

1244
00:54:00,040 --> 00:54:01,520
Speaker 2: I just heard it now, so I agree.

1245
00:54:01,600 --> 00:54:03,239
Speaker 1: I think I said it, and now I'm quoting me,

1246
00:54:03,480 --> 00:54:05,360
Speaker 1: so it's like an Ora Boris.

1247
00:54:06,120 --> 00:54:08,520
Speaker 2: But that's gonna be it for this episode until next time, Buddy,

1248
00:54:08,600 --> 00:54:10,680
Speaker 2: Best Friends Out, Best Friends Out,