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Speaker 1: Welcome to How the Money. I'm Joel and I'm at

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Speaker 1: and today we're answering a listener's question, is saving for

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Speaker 1: college worth it? Eduel? That's right, man, A listener wrote

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Speaker 1: in and ask the questions should I say within a

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Speaker 1: five plenty nine for my kids college? And yes, we're

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Speaker 1: gonna talk about that. We're gonna talk about even if

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Speaker 1: it makes sense as a parent, should we be saving

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Speaker 1: for our children's college at all? And usually we like

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Speaker 1: to reply to listener emails with the one word response, right,

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Speaker 1: we just yes, no bye. I always just say maybe yeah.

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Speaker 1: But we figured, you know, Mark sounds like a good

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Speaker 1: guy in his email, and so we would dedicate probably

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Speaker 1: what's going to be a lengthy discussion about this topic

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Speaker 1: in order to hopefully bring up the nuances of what

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Speaker 1: you should canto it or when you're thinking about, you know,

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Speaker 1: if you have young kids, if you're thinking about having

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Speaker 1: kids someday, if you've got kids that are in middle

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Speaker 1: school or elementary school, like should you be saving for

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Speaker 1: their college? And and we hope to shed some light

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Speaker 1: on that today. Yeah, man, And this would be a

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Speaker 1: good time to to say, if any of your listeners

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Speaker 1: out there have questions. We're gonna hope to do more

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Speaker 1: of these here in the future. Man, email us. You

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Speaker 1: know you're You're welcome to comment and hit us up

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Speaker 1: in the messages on the socials, but the best way though,

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Speaker 1: email us. Yeah, and we're gonna read all those questions

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Speaker 1: that come in and hopefully we'll be able to respond

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Speaker 1: to some of those in an episode format. Most definitely.

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Speaker 1: So actually, real quick, before we launched the question, I

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Speaker 1: broke my phone. Have you seen my screen? Oh? Yeah,

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Speaker 1: I saw that. You shouted your screen quickly after my

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Speaker 1: wife shattered hers. Yeah, so you mentioned something. Have you

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Speaker 1: seen any deals out there on Uh? You know I

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Speaker 1: love the iPhone? Well, you know I'm a deal hunter,

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Speaker 1: so I will say, should I put you to work?

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Speaker 1: You should? I got really fortunate. My wife broke her

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Speaker 1: phone on the exact same day that there was a

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Speaker 1: twenty percent off coup on site wide on eBay. So

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Speaker 1: it's like literally you could buy anything that's nice all

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Speaker 1: over eBay, and eBay comes out with those coupons like

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Speaker 1: once a month, once every two months. Um, so you

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Speaker 1: know it doesn't look too bad. It looks Emily's. Emily

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Speaker 1: was like literally getting charge of glass in her finger.

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Speaker 1: It was pretty rough. It does keep the kids away now, though,

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Speaker 1: like they're like, oh, I don't want touch Ddy's phone anymore. Yeah,

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Speaker 1: I cut my fingers. But we ended up buying her

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Speaker 1: a refurbished iPhone six S and I think it costs

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Speaker 1: around hundred and seventy five dollars, not too shabby, but yeah,

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Speaker 1: I'll be on the lookout. Yeah, be on the lookout man. Seriously,

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Speaker 1: chunks of glass are also falling off mine a little bit,

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Speaker 1: and I can for the first time see like inside

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Speaker 1: the phone, which is like, oh, look at that. It's

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Speaker 1: less solid than I thought. That brings up one thought

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Speaker 1: for me for people who have smartphones out there, put

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Speaker 1: a case on it. Put a case on it. That's

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Speaker 1: actually the cheapest insurance that you can have. Uh. And

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Speaker 1: then but don't buy the actual insurance through your phone

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Speaker 1: carrier because it usually is very costly, between seven eleven

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Speaker 1: maybe even more dollars a month for the insurance, and

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Speaker 1: then you have a deductible on top of that. And

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Speaker 1: then in addition, you're probably gonna get a refurbished phone

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Speaker 1: when they replaced the phone that breaks, so it's usually

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Speaker 1: not worth it. Just self insure and save up your

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Speaker 1: money for wide Yeah, it does break, and then kind

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Speaker 1: of consider buying cheaper phones. I personally don't put a

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Speaker 1: case on my phone. I'm pretty careful with it, and

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Speaker 1: I just I don't know, I think it kind of

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Speaker 1: actually ruins it for me if you case on it

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Speaker 1: and it's all bulky and hard to get out of

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Speaker 1: your pocket. I kind of like rolling with a smartphone

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Speaker 1: with no case. So I used to be that way,

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Speaker 1: you know, like I was all about the form. I

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Speaker 1: mean that's a huge part of specifically the iPhones, right,

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Speaker 1: like the design and the lines and like the curves

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Speaker 1: and stuff. Except that this current phone that I got

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Speaker 1: it is like a little over. I think it's two

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Speaker 1: years ago. Maybe no, actually it's coming up on three.

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Speaker 1: I think literally the week I had it, I went

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Speaker 1: to put it back in my pocket, uh and missed

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Speaker 1: me and I was I was out for a walk

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Speaker 1: at night, and I'm like no, And I checked the

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Speaker 1: glass and it didn't break. But then when I got home,

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Speaker 1: it had landed directly on the edge, like on the

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Speaker 1: bezel and dented the metal like there's a huge, huge gash,

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Speaker 1: but it did not crack the glass. But literally after

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Speaker 1: that was like, seriously, I've had this for a week.

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Speaker 1: I've got to get a case now, for the first

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Speaker 1: time ever, I'm gonna put a case in my iPhone.

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Speaker 1: And I had a case on here except that I've

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Speaker 1: been running. You know, I've been running lately, and I

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Speaker 1: use this arm band and I have to take the

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Speaker 1: case off when I put the phone in the arm band.

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Speaker 1: So when I took the phone out, as all was cool,

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Speaker 1: you know, a cool down, and my hands are all

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Speaker 1: sweaty and slippery because it's freaking thousand degrees in Atlanta.

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Speaker 1: It's slipped out of my hand and freaking landed on

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Speaker 1: the street. Then I've been meaning to ask you, what

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Speaker 1: are you running from? By the way, like, are you tormented?

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Speaker 1: Is there something my fears? Imaginary animals? Dude, I just

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Speaker 1: you couldn't pay me to run like that. Biking, I'm

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Speaker 1: all about it. Bike, It's fun. I don't know something

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Speaker 1: about running, man, It's just so simple. So, I mean,

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Speaker 1: I have my phone with me, but I use it

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Speaker 1: to just track my speed right, to track my distance

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Speaker 1: and all that kind of stuff. I don't like. I

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Speaker 1: don't listen to stuff. I don't listen to music. I

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Speaker 1: just like to zone out and just kind of clear

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Speaker 1: my head and start my mornings off that way where

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Speaker 1: I'm able to just get the it flowing. And well, specifically,

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Speaker 1: I signed up for a race. I'm training for that.

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Speaker 1: It's just my excuse to once a year start running

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Speaker 1: a few months out of the year and to run

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Speaker 1: in a hundred degree heat in July, massive humidity. The

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Speaker 1: humidity is terrible. It doesn't get that hot that early,

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Speaker 1: but I try to run early anyway, That's how I

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Speaker 1: cracked my phone. Well, I will be looking around the

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Speaker 1: interwebs because you know that is one of my gifts,

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Speaker 1: finding a deal. So I'll see what I can do

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Speaker 1: for you. Yeah, maybe you'll convert me over and see

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Speaker 1: if you can try to get me on the Android.

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Speaker 1: I've been trying. I've been trying. You know what, if

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Speaker 1: the deal is good enough, you might make it happen.

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Speaker 1: It's true, you know, because I because I haven't been

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Speaker 1: self insuring and I don't have the money set aside already. Like, yeah,

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Speaker 1: I could go buy a phone, you know, a decent phone. Now,

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Speaker 1: maybe not the new one like the X or whatever.

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Speaker 1: I don't want to drop a thousand freaking thousand bucks

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Speaker 1: on a new phone, but it's got that kind of money. Also,

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Speaker 1: don't lease a phone. That's a terrible paying monthly payments

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Speaker 1: and then not keeping it at the end. That's like

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Speaker 1: leasing a car. Don't leave a phone. Yeah, that's I

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Speaker 1: guess the most expensive way to own a fancy new phone.

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Speaker 1: That's gonna well, you need to put owning clothes to

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Speaker 1: have a fusee utilized for a while. Um yeah, I

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Speaker 1: wanted two matches. We're talking about saving for college tonight.

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Speaker 1: I wanted to quickly, uh tell our tell listeners about

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Speaker 1: our college experience. So how many keg stands did you

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Speaker 1: do in college? Is my first question? Zero? Man? Oh good?

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Speaker 1: Oh me too. Actually, yeah, we're both straight edges, so

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Speaker 1: tame college. Yeah man, But even still, we had had

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Speaker 1: an amazing time in college. I went to school Georgia

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Speaker 1: u g A, which everyone knows is a fantastic school.

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Speaker 1: I could probably name both the colleges I went to

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Speaker 1: and no one would know the mascot. So our college

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Speaker 1: experience is probably couldn't be any more different, I'm going

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Speaker 1: to guess. So I went to a small private school

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Speaker 1: for the first two years, and everybody knew everybody, and

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Speaker 1: we would have like foot races, like like we just

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Speaker 1: did the weirdest things for fun. We would uh we

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Speaker 1: would like play poker or a lot of video games,

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Speaker 1: you know, stuff like that. Yeah. Like, to be honest, dude,

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Speaker 1: that was the majority of like what happened at Georgia

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Speaker 1: from me as well. But but specifically I wanted to

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Speaker 1: ask you too, like sort of what was your parents

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Speaker 1: like expectation for you, like to go to college. Was

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Speaker 1: it a big deal? You know, like was it expected?

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Speaker 1: Did you come from like a long line of like

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Speaker 1: college professors or graduates sort of thing where it was

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Speaker 1: just like, oh, yeah, you better go to school, or

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Speaker 1: was it sort of like, uh yeah, do your own thing, dude?

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Speaker 1: You know, I think it was always assumed, but there

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Speaker 1: was this never this overbearing expectation put on it either.

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Speaker 1: I think if I had whatever I did, if it

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Speaker 1: was if they thought that it was well thought out

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Speaker 1: and then I really felt compelled to do something, I

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Speaker 1: think they would have supported me. And so if that

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Speaker 1: was to go be an underwater welder or whatever that

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Speaker 1: might be, I think my parents would have said, go

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Speaker 1: for it. That's great. I thought you're gonna say, like

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Speaker 1: the classic underwater basket weaving. They might not have supported

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Speaker 1: that because there's probably not much direction in that. But um,

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Speaker 1: both of my parents graduated from college and education is

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Speaker 1: important to us. Yeah, but also it wasn't this big

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Speaker 1: built up thing where, um, you know you have to

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Speaker 1: achieve this certain level of education or in our eyes

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Speaker 1: you're a failure. There was there was no that, right. Yeah,

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Speaker 1: I'm with you, dude. My parents are are very Yeah,

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Speaker 1: we had we had similar parents. I guess in their regard,

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Speaker 1: there's definitely an expectation and with that expectation came money

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Speaker 1: as well, and so like there's a big chunk of

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Speaker 1: money set aside for me to go to college, and

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Speaker 1: like my mom and my like my dad. I remember

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Speaker 1: my dad specifically like talking to me and just really, look,

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Speaker 1: you don't have to go to college, but just know

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Speaker 1: that this would probably make break your mom's heart because

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Speaker 1: she's Korean, and I think the Asian sort of culture

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Speaker 1: and and mindset of higher education. It's very esteemed, right,

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Speaker 1: It's it's sort of like, well, that's what you do.

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Speaker 1: There's like no questions asked. Certainly, I know she would

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Speaker 1: have loved me like it had I not gone to

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Speaker 1: college and taking that money and you know, maybe either

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Speaker 1: invested or started a business. But fact is I didn't

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Speaker 1: have any sort of direction. And you know, so I

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Speaker 1: was like, Okay, college, that sounds great, let's do it. Well.

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Speaker 1: I think that's actually probably one of the biggest things

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Speaker 1: in the plus column for going to college is that

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Speaker 1: you get that direction. You get that direction, and especially

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Speaker 1: in this day age when you're you know, seventeen or

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Speaker 1: eighteen and you're applying to go to college, most kids

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Speaker 1: at that age have zero idea what they want to

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Speaker 1: do and and really like don't have any of the

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Speaker 1: life skills even in order to pursue something that they

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Speaker 1: might even have an inkling they want to do. And

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Speaker 1: I know that those are total genius like Elon Musk

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Speaker 1: or something like that, and you just know exactly what

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Speaker 1: you want to do, right or that Bill Gates type

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Speaker 1: or Steve or whatever. But so I think that four

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Speaker 1: years for me was really formative, like relationally, culturally, the

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Speaker 1: things that I know you learned a lot the things

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Speaker 1: that I learned just outside the classroom. I think we're

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Speaker 1: equally as important, if not more important to me. But

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Speaker 1: when I learned inside the classroom going to college, so

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Speaker 1: that might not be what college is for. But that

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Speaker 1: was so I mean, I just remember looking back, those

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Speaker 1: are the things that were formative for me. No, no,

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Speaker 1: I think it's good that we actually talk about that

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Speaker 1: because we're gonna spend the rest of the podcast probably

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Speaker 1: talking about why you shouldn't go together or not, maybe

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Speaker 1: not why you shouldn't, but we're I mean, we're gonna

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Speaker 1: have more or ultimately not why you shouldn't, but like

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Speaker 1: why you shouldn't maybe not be saving for your kids college, right,

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Speaker 1: So uh yeah, I feel like we're gonna highlight more

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Speaker 1: of the reasons why, and just in general, we're kind

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Speaker 1: of knocking it down a few spots on the tone

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Speaker 1: and pole, right, Like, you know, it's not like this

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Speaker 1: be all end all thing that you put all your

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Speaker 1: money towards. I think that's kind of how we're gonna

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Speaker 1: end up walking away from this episode. But they're, like

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Speaker 1: you said, there's a lot of intangible things that you

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Speaker 1: learn in college that that's really hard to quantify. The

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Speaker 1: relationships the people that you meet, and all the sort

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Speaker 1: of personal things that you mentioned too. But it's so

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Speaker 1: funny how like we both love beer so much, but

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Speaker 1: neither of us have these amazing kig stand beer stories.

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Speaker 1: I know you think we would, right, feel kind of

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Speaker 1: lame to be honest. Speaking of beer, though, let's pop

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Speaker 1: this one. Uh. It's toime to make up for lost

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Speaker 1: lost time all the last years, so we have to

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Speaker 1: drink at least once a week on the podcast. Now

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Speaker 1: I'll pop this beer right now from Firestone Walker. It's

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Speaker 1: a wild ale fermented with strawberries. Yeah, as you could hear,

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Speaker 1: this is another cork and cage. What do we what

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Speaker 1: do we have? Last week? Is this two beers in

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Speaker 1: a row, two weeks in a row that we've had

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Speaker 1: fancy beers? It sure is. Yeah, the RuSHA River Consecration. Yeah,

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Speaker 1: so this is to California beers back to back. Uh,

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Speaker 1: two donated beers from friends back to back. So last

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Speaker 1: week our friend Carl donated the beer and then this week.

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Speaker 1: That's right, my friend Josh, who I don't think he

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Speaker 1: has any Twitter handle or blog that he wants repped,

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Speaker 1: but just a really good friend for a long time.

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Speaker 1: And uh, he lives out in California and has access

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Speaker 1: to these amazing beers. And he went to the Firestone

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Speaker 1: Walker Brewery and this is a big name out West

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Speaker 1: out in California right, well there, I think there are

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Speaker 1: in a lot of states too overall. I mean I

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Speaker 1: think they're probably more than half of the states distributing

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Speaker 1: now and so, but he went to the actual brewery

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Speaker 1: and got this beer. It is called schumps. The phrase

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Speaker 1: I shouldn't even do it, I shouldn't even try it.

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Speaker 1: So I mean I'm thinking of like in like in Paris,

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Speaker 1: the sham, the sham sham shamps de liz is how

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Speaker 1: I think. So, Josh, thank you for providing this beer.

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Speaker 1: Super pumped to dip into it. Yeah, tell us about

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Speaker 1: this beer, Joel. This is is so wild ale for

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Speaker 1: a minute, was with strawberries. It's hung out in French

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Speaker 1: choked barrels for fifteen months. So I think people that

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Speaker 1: listen to the podcast, no, I think we're both kind

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Speaker 1: of obsessed with sour beers with fruit in them, and

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Speaker 1: this is one of those. Well, in fact is too man.

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Speaker 1: It's summertime, and so you know we we can have

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Speaker 1: an occasional stout here and there, but you know, these bright, tart,

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Speaker 1: refreshing sours with a little bit of fruit added are

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Speaker 1: especially delicious in the summer. But a sund like this, yeah,

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Speaker 1: particularly refreshing. Dude, I just stuck my nose and crap,

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Speaker 1: that is like it smells like beer concentrate. Man, I

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Speaker 1: think this thing is about to knock us back. Cheers.

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Speaker 1: Oh wow. That beer is like really tart in the

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Speaker 1: perfect way. It's more tart than consecration. It's more tartly

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Speaker 1: than most of the beers we've had. But on this podcast, man,

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Speaker 1: that strawberry has almost like this nice sort of funky

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Speaker 1: edge to it. The oak and the strawberries really come

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Speaker 1: through nicely. Um, and then that really nice tart finish.

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Speaker 1: That's delicious. That's really great. Thank you Josh for sending

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Speaker 1: this over. I mean, my goodness, that's delicious. Thanks Josh.

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Speaker 1: All right, enough about beer, onto our listener marks question.

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Speaker 1: Here's what he said. He said, I was wondering about

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Speaker 1: your thoughts on saving for a child's education. My wife

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Speaker 1: and I both work at colleges. She's a professor, I'm

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Speaker 1: a counselor, and we're actually not sure what college will

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Speaker 1: look like in fifteen years and what the value proposition

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Speaker 1: will be. Also, will our kids even want to go

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Speaker 1: to college. We haven't made decisions on a nine or

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Speaker 1: other account, but starting to have the discussion. Thanks fellas, Mark,

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Speaker 1: awesome question. And I say that because this is a

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Speaker 1: discussion that my wife and I started having several years

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Speaker 1: ago too. Being self employed, we quickly realized that we

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Speaker 1: didn't need to go to school to do what it

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Speaker 1: was at the time. We were both working in the

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Speaker 1: business and so we were both photographers and neither of

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Speaker 1: us went to school for that, and neither of us

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Speaker 1: have taken a formal class. But that being said, we

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Speaker 1: both went to date college for four years and got

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Speaker 1: our got our undergrads. So there's a period there where

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Speaker 1: we're both like, God, sucks, Like, what's the point, you know,

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Speaker 1: it's not practical at all. And he kind of went

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Speaker 1: through this whole phase where we're like, nobody should ever

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Speaker 1: go to school. Certainly that's advice that isn't for everyone, right, Like,

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Speaker 1: if you want to be a doctor, you've got to

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Speaker 1: be a science major. You have to those the stuff

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Speaker 1: you know you need to take. But yeah, it's good

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Speaker 1: to kind of revisit this, uh, this discussion and kind

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Speaker 1: of cover some of these topics. Yeah, I think even

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Speaker 1: from the beginning, Mark is kind of thinking about it properly.

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Speaker 1: I like the way that even as a husband and

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Speaker 1: wife that both work out of college. He's still saying, Yeah,

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Speaker 1: I what is this? What's the value proposition? What are

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Speaker 1: things gonna look like in fifteen years? Will our kids

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Speaker 1: even want to go to college? Like? Those are the

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Speaker 1: right questions, awesome questions, Mark, because usually people are like,

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Speaker 1: how much should I be putting in? Yeah, the assumption is,

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Speaker 1: of course we're gonna save, and this is just what

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Speaker 1: you do. Of course, right, that's just the right thing

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Speaker 1: to do, right, And so I like the questions that

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Speaker 1: he's asking, and I think there are obviously a bunch

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Speaker 1: of things to go into this. The first thing is

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Speaker 1: it kind of depends on how your family views college.

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Speaker 1: So you know, Matt and I were just talking about

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Speaker 1: kind of the expectation for our families, and you know,

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Speaker 1: they were similar but a little different. Mark, with both

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Speaker 1: you and your wife working out of college, the likelihood

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Speaker 1: of your children wanting to go to college is higher.

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Speaker 1: I mean, the statistics will bear out too, that your

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Speaker 1: parents go to college. It's assumed sort of basically, there's

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Speaker 1: a there's a much greater chance that you will, and

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Speaker 1: especially working in a college, so for them, a plan

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Speaker 1: that's like one check in that in that box, there's

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Speaker 1: just a greater likelihood that it's going to happen. And

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Speaker 1: you know, I think we'll give you kind of a

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Speaker 1: lot of unchecked boxes that you need to think through.

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Speaker 1: But that's just kind of one thing. Okay, there's a

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Speaker 1: good likelihood that your kids, all things being equal, based

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Speaker 1: on statistics, are they're much more likely than a lot

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Speaker 1: of other children tend up pursuing higher education. And so, Mark,

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Speaker 1: you specifically asked about the five twenty nine and so

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Speaker 1: for you, unless there's something that you didn't share, Like,

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Speaker 1: I think there's a good chance that your your kids

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Speaker 1: or your kid would be going to college, and in

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Speaker 1: which case it might makes sense for you to to

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Speaker 1: be setting aside money in a plan. You didn't mention

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Speaker 1: whether or not you guys are you know, are are

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Speaker 1: kind of maxing out your retirement savings. I think that's

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Speaker 1: something that we would want to see in a in

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Speaker 1: a particular order. But yeah, so let's talk about specifically.

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Speaker 1: Let's a lot of your listeners out there probably have

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Speaker 1: heard maybe the term plan, but you may not exactly

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Speaker 1: know what that is. Let's dive into that right after

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Speaker 1: this break. Yeah, I think Matt, like we talked about

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Speaker 1: in our Investment Basics episodes, like there's like a lot

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Speaker 1: of different numbers and letters and all these things put

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Speaker 1: together for all these different retirement accounts, and most people

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Speaker 1: probably have heard nine. But then you know, well what

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Speaker 1: is it? Uh? And so it is an investment accounts

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Speaker 1: specifically designed to help you save for college. Uh. And

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Speaker 1: it's got great benefits. The investments are allowed to grow

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Speaker 1: on a tax deferd basis, and your withdrawals will be

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Speaker 1: a percent tax free no matter how much profit you've

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Speaker 1: seen from those in vestments, as long as those proceeds

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Speaker 1: are used for qualifying education expenses. Uh. And you can

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Speaker 1: kind of look to see what those things are like

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Speaker 1: that computers and room and board and things like that

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Speaker 1: also count. You can use five pollion nine money for

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Speaker 1: those things, not just for the tuition bill. But the

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Speaker 1: other thing about five nine plans is that many states

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Speaker 1: offer a tax deduction or credit on your contributions into

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Speaker 1: a five plan. So a lot of people think, boom,

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Speaker 1: I want to do this, so I can you know,

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Speaker 1: avoid paying state taxes on that income. And so that

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Speaker 1: can be you know, a really good way to to

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Speaker 1: use a plan to kind of lessen your tax burden, um,

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Speaker 1: and say for your kids college in the in the

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Speaker 1: same way. Nice. Yeah, And another huge benefit to man

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Speaker 1: is that it's transferable and so even And it's good

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Speaker 1: to mention this too, because Markey's like the way you

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Speaker 1: wrote kids in your question, you kind of put the

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Speaker 1: s in parentheses, which tells me, I guess that you

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Speaker 1: maybe have one child and that you might have multiple

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Speaker 1: so down the road. And that's me that's a huge

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Speaker 1: distinction to make there because with a single kid, it's like, well,

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Speaker 1: we're gonna set all this money aside, and there's a

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Speaker 1: chance that you know that that kid may not go

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Speaker 1: to college. Well, if you have two or more, there's

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Speaker 1: a much greater chance that one of those kids will

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Speaker 1: go to college. Right, And so you know, say your

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Speaker 1: first kid doesn't end up going to college, well you

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Speaker 1: still have kid number two and maybe even kid number three,

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Speaker 1: plus that you can transfer the benefits of the five

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Speaker 1: to Yeah, and you can even transfer it to you

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Speaker 1: or your wife or or a nephew or a niece

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Speaker 1: or something like that. And so if you are just

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Speaker 1: dead set against taking the tax hit, which we'll mention

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Speaker 1: in a minute, uh, you can transfer it to a

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Speaker 1: wide variety of people. You can go back to school

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Speaker 1: yourself and use those funds, uh and still claim that

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Speaker 1: tax benefit. So Angel, you could go back and do

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Speaker 1: the underwater welding. You know, dude, I'd be so good

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Speaker 1: at it. Some of such a good swimmer these days.

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Speaker 1: I feel like I can see underwater holding your breath,

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Speaker 1: that's true, getting the wells in real quick. My concentration

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Speaker 1: level might be lacking in order to perform that job.

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Speaker 1: But I think I heard it pays well, so I'll

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Speaker 1: consider it. So, I mean, those are just a couple

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Speaker 1: of the benefits of a five nine plan. This isn't

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Speaker 1: necessarily gonna be an episode where we talked through all

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Speaker 1: the pros and all the cons of all the different

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Speaker 1: ways that you could potentially save for college, and of

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Speaker 1: the college specific savings accounts out there, it's probably the

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Speaker 1: most popular one, and so we definitely want to make

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Speaker 1: sure we we hit this one. And then we're gonna

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Speaker 1: spend the rest of the episode talking about some alternatives

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Speaker 1: to that, uh and some maybe some more creative ways

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Speaker 1: to think about not only saving but just thinking about

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Speaker 1: higher education in general. Yeah, let's hit a few of

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Speaker 1: the drawbacks of a five twenty nine playing real quick.

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Speaker 1: The biggest drawback that it has that it has to

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Speaker 1: be used for educational expenses. Otherwise we'll get hit with

427
00:19:39,200 --> 00:19:42,159
Speaker 1: a ten percent penalty, UH, and that will be counted

428
00:19:42,200 --> 00:19:45,840
Speaker 1: as federally taxed income plus the state rate if you

429
00:19:45,920 --> 00:19:50,240
Speaker 1: receive that state deduction or credit. Another big drawback potential

430
00:19:50,440 --> 00:19:54,320
Speaker 1: is high costs. Each state has their own five twenty

431
00:19:54,400 --> 00:19:59,199
Speaker 1: nine program, and different states offer different investments inside of that.

432
00:19:59,200 --> 00:20:03,199
Speaker 1: FIE then again is like the vehicle, and the the

433
00:20:03,240 --> 00:20:06,040
Speaker 1: investments inside are like the passengers, and so you know,

434
00:20:06,080 --> 00:20:09,880
Speaker 1: one fine plan could be great, low cost, widely diversified,

435
00:20:09,880 --> 00:20:13,320
Speaker 1: and another five twenty nine plan UH could have investments

436
00:20:13,359 --> 00:20:16,520
Speaker 1: that are high cost and not widely diversified. And so

437
00:20:16,560 --> 00:20:18,200
Speaker 1: you don't want to enter into a plane like that.

438
00:20:18,560 --> 00:20:20,960
Speaker 1: So definitely watch out for the high cost plans. And

439
00:20:21,000 --> 00:20:23,440
Speaker 1: in general, I mean it could be underperforming as well, right,

440
00:20:23,520 --> 00:20:25,639
Speaker 1: just aside from the costs, I mean, it depends on

441
00:20:25,720 --> 00:20:28,680
Speaker 1: what they offer and allow you to invest UH within

442
00:20:28,760 --> 00:20:31,280
Speaker 1: your five twenty nine. Right, Like, sometimes there's like basically

443
00:20:31,320 --> 00:20:34,480
Speaker 1: like a limited menu of options, and if you're stuck

444
00:20:34,480 --> 00:20:36,320
Speaker 1: with one of those five nine, you're probably going to

445
00:20:36,359 --> 00:20:39,400
Speaker 1: see that account yeah, just underperform. Yeah, but there are

446
00:20:39,560 --> 00:20:43,720
Speaker 1: great resources out there for you too, essentially review each

447
00:20:43,760 --> 00:20:46,159
Speaker 1: state's five nine plan and see whether the state you

448
00:20:46,200 --> 00:20:49,600
Speaker 1: live in offers one that you should consider participating in. So,

449
00:20:49,840 --> 00:20:52,400
Speaker 1: in particular, there's a great resource at Clark dot com.

450
00:20:52,480 --> 00:20:54,040
Speaker 1: That's the place where I work, by the way, for

451
00:20:54,080 --> 00:20:57,120
Speaker 1: a full disclosure, and Clark Howard, my boss, has put

452
00:20:57,119 --> 00:20:59,880
Speaker 1: together a really good list of the five nine plans

453
00:20:59,920 --> 00:21:01,480
Speaker 1: you should consider and the ones that you should stay

454
00:21:01,480 --> 00:21:05,119
Speaker 1: away from. And that's essentially based on what states offer

455
00:21:05,240 --> 00:21:08,720
Speaker 1: a decent tax break for you for investing, and then

456
00:21:08,800 --> 00:21:12,200
Speaker 1: on top of that, which states offer great funds at

457
00:21:12,320 --> 00:21:14,960
Speaker 1: low costs so that your money is actually you know,

458
00:21:15,040 --> 00:21:18,240
Speaker 1: working and growing hopefully for your kids as opposed to

459
00:21:18,240 --> 00:21:22,680
Speaker 1: getting eaten up by fees by the plans administrator. Awesome. Yeah, man,

460
00:21:22,680 --> 00:21:25,720
Speaker 1: So that's the five nine plan. And you know, we

461
00:21:25,720 --> 00:21:28,879
Speaker 1: would recommend that if there's a high likelihood of your

462
00:21:28,960 --> 00:21:34,120
Speaker 1: kids going to college, and if you have prioritized retirement savings. Yeah,

463
00:21:34,160 --> 00:21:37,160
Speaker 1: that's right, Matt. There's a few reasons why we think

464
00:21:37,160 --> 00:21:39,520
Speaker 1: it's way more important to be focused on saving for

465
00:21:39,600 --> 00:21:43,280
Speaker 1: retirement than it is to be focused on saving for

466
00:21:43,359 --> 00:21:46,199
Speaker 1: your child's college future. Kind of the main reason for

467
00:21:46,240 --> 00:21:49,480
Speaker 1: that is there are lots of ways that you'll be

468
00:21:49,520 --> 00:21:52,119
Speaker 1: able to pay for college, and there just aren't that

469
00:21:52,119 --> 00:21:54,880
Speaker 1: many ways to pay for your own retirement. And we'll

470
00:21:54,920 --> 00:21:56,760
Speaker 1: kind of give you some things to consider, you know,

471
00:21:56,960 --> 00:21:58,560
Speaker 1: a little bit later in the podcast about how to

472
00:21:58,560 --> 00:22:01,360
Speaker 1: pay for college other ways, but really, no one else

473
00:22:01,440 --> 00:22:04,320
Speaker 1: is gonna help fund your retirement, and so making sure

474
00:22:04,359 --> 00:22:06,760
Speaker 1: that you've got that buttoned up, make sure that you're

475
00:22:06,800 --> 00:22:09,719
Speaker 1: contributing up to the match and hopefully more in your

476
00:22:09,760 --> 00:22:12,080
Speaker 1: four oh one K. Making sure that if you meet

477
00:22:12,080 --> 00:22:16,040
Speaker 1: the income limit eligibility, that you're fully funding a roth

478
00:22:16,200 --> 00:22:18,680
Speaker 1: for you and if you're married, for you and your spouse,

479
00:22:18,800 --> 00:22:21,160
Speaker 1: and if you exceed those income limits, then making sure

480
00:22:21,200 --> 00:22:24,000
Speaker 1: that you are are putting a substantial amount into a

481
00:22:24,000 --> 00:22:28,119
Speaker 1: traditional i RA. Essentially prioritizing your retirement over your kids

482
00:22:28,160 --> 00:22:31,560
Speaker 1: college future is more important and actually ultimately better for

483
00:22:31,600 --> 00:22:33,960
Speaker 1: them at the same time. Yeah, man, you know, one

484
00:22:33,960 --> 00:22:35,760
Speaker 1: way I'm thinking about it too, is like when you're

485
00:22:35,800 --> 00:22:37,600
Speaker 1: on the airplane and they always say that, like if

486
00:22:37,640 --> 00:22:40,399
Speaker 1: the mask drops, uh, make sure you put on yourself

487
00:22:40,400 --> 00:22:44,280
Speaker 1: before helping others around you, especially your kids, Right it's

488
00:22:44,320 --> 00:22:46,680
Speaker 1: like the same that's the perfect It's like the same

489
00:22:46,720 --> 00:22:49,560
Speaker 1: thing because often times you think, oh crap, my kid,

490
00:22:49,840 --> 00:22:54,000
Speaker 1: you know, a good parents should say that. But you know,

491
00:22:54,040 --> 00:22:56,160
Speaker 1: if you're thinking about it soundly, and if you think

492
00:22:56,160 --> 00:22:57,680
Speaker 1: about ahead of time, which is why they have the

493
00:22:57,840 --> 00:23:00,840
Speaker 1: videos that no one ever listens to, including myself. Um,

494
00:23:00,920 --> 00:23:02,560
Speaker 1: but you want to get on yourself first. That way,

495
00:23:02,680 --> 00:23:04,679
Speaker 1: you can't help others you. That way, you can't help

496
00:23:04,720 --> 00:23:07,880
Speaker 1: your children and elderly whoever else around you get their

497
00:23:07,880 --> 00:23:09,840
Speaker 1: masks on too so they don't pass out. I think

498
00:23:09,840 --> 00:23:11,679
Speaker 1: the same thing applies applies with this, you know, like

499
00:23:11,720 --> 00:23:13,600
Speaker 1: you kind of need to get your own footing to

500
00:23:13,640 --> 00:23:17,040
Speaker 1: be solid before you're able to kind of start working on,

501
00:23:17,480 --> 00:23:20,159
Speaker 1: you know, setting aside the funds to specifically to go

502
00:23:20,240 --> 00:23:22,719
Speaker 1: towards children's college. Yeah, and I think it would be

503
00:23:22,720 --> 00:23:26,160
Speaker 1: better for your kid to rack up some student loans

504
00:23:26,160 --> 00:23:27,600
Speaker 1: and have to pay those off, you know, over the

505
00:23:27,600 --> 00:23:30,359
Speaker 1: next ten, fifteen, twenty years than to find out that

506
00:23:30,400 --> 00:23:33,439
Speaker 1: your destitute and retirement and not have student loans to

507
00:23:33,520 --> 00:23:35,439
Speaker 1: deal with, but then have to figure out, you know,

508
00:23:35,440 --> 00:23:37,880
Speaker 1: how to support you and and make that work in retirement.

509
00:23:37,960 --> 00:23:40,280
Speaker 1: I think it makes a whole lot more sense to

510
00:23:40,560 --> 00:23:43,119
Speaker 1: be saving for your retirement. The other thing, too, is

511
00:23:43,119 --> 00:23:46,040
Speaker 1: that your your retirement accounts have longer to grow more

512
00:23:46,080 --> 00:23:50,440
Speaker 1: compounding interest. To make nine account, even if you open

513
00:23:50,440 --> 00:23:52,879
Speaker 1: it when your child is born, is going to have,

514
00:23:52,960 --> 00:23:56,160
Speaker 1: you know, eighteen years to grow into compound. You're gonna

515
00:23:56,200 --> 00:23:59,360
Speaker 1: have extra cycles of compounding interest on your retirement accounts

516
00:23:59,440 --> 00:24:01,680
Speaker 1: that are gonna grow and grow and grow. And so

517
00:24:02,040 --> 00:24:04,000
Speaker 1: if you, yeah, so what you're saying that they had

518
00:24:04,040 --> 00:24:05,920
Speaker 1: you not contributed to that, you're going to be missing

519
00:24:05,920 --> 00:24:09,520
Speaker 1: out on some massive final compounding interest years there in

520
00:24:09,560 --> 00:24:11,840
Speaker 1: the end. Yep. Yeah, and so yeah, I think that's

521
00:24:11,880 --> 00:24:15,560
Speaker 1: another another check in the box of saving for retirement

522
00:24:16,040 --> 00:24:18,399
Speaker 1: as opposed to saving for your kids college. Yeah. I mean.

523
00:24:18,440 --> 00:24:20,479
Speaker 1: The other thing is too, is kids are young, you know,

524
00:24:20,600 --> 00:24:22,600
Speaker 1: like they're strong, They can figure out, figure things out

525
00:24:22,600 --> 00:24:25,040
Speaker 1: while they're young and take on an extra job like

526
00:24:25,040 --> 00:24:26,720
Speaker 1: when you're old. You don't want to have to deal

527
00:24:26,720 --> 00:24:28,639
Speaker 1: with that, like you know, like you want to be

528
00:24:28,720 --> 00:24:31,040
Speaker 1: taking on a second job, you know, taking on additional

529
00:24:31,080 --> 00:24:33,240
Speaker 1: hours in order to make up some of those last

530
00:24:33,320 --> 00:24:35,840
Speaker 1: years where you weren't contributing to your retirement. I mean, no,

531
00:24:36,119 --> 00:24:37,800
Speaker 1: that's that's that's the answer. No, you want you want

532
00:24:37,800 --> 00:24:39,480
Speaker 1: to be in a in a position to where that's

533
00:24:39,560 --> 00:24:41,760
Speaker 1: that's already going for you, and hopefully from a position

534
00:24:41,760 --> 00:24:45,680
Speaker 1: of financial strength, you can at that point look to

535
00:24:45,840 --> 00:24:47,800
Speaker 1: maybe help your children out after the fact. I think

536
00:24:47,840 --> 00:24:50,879
Speaker 1: that's maybe even a better approach than to sort of

537
00:24:50,960 --> 00:24:53,040
Speaker 1: sacrifice on the front end for yourself. But then you're

538
00:24:53,119 --> 00:24:55,040
Speaker 1: sort of in a much weaker position long term, and

539
00:24:55,080 --> 00:24:57,400
Speaker 1: then they're almost having to kind of pull you up

540
00:24:57,480 --> 00:25:01,160
Speaker 1: versus you being in a position of of financial strength. Yeah.

541
00:25:01,240 --> 00:25:03,520
Speaker 1: I mean again, there's really a lot of ways to

542
00:25:03,520 --> 00:25:05,439
Speaker 1: pay for college. There are a lot of options. There

543
00:25:05,440 --> 00:25:08,199
Speaker 1: are grants, there are scholarships. But when it comes to

544
00:25:08,280 --> 00:25:11,560
Speaker 1: paying for retirement, essentially, since pensions are super rare now,

545
00:25:11,800 --> 00:25:13,520
Speaker 1: we have to foot more of the bill for our

546
00:25:13,560 --> 00:25:16,000
Speaker 1: own retirement and so that's something that we have to

547
00:25:16,000 --> 00:25:20,560
Speaker 1: plan for. There's no retirement scholarship right right, and all

548
00:25:20,600 --> 00:25:24,600
Speaker 1: the lottery which you shouldn't be playing. And so yeah,

549
00:25:24,640 --> 00:25:28,159
Speaker 1: saving now and saving well for your retirement is the

550
00:25:28,160 --> 00:25:30,159
Speaker 1: biggest priority. I want to say too, in a perfect

551
00:25:30,160 --> 00:25:32,639
Speaker 1: world like all the above, right like that, But I

552
00:25:32,640 --> 00:25:35,359
Speaker 1: think what we're talking about here is kind of finite resources.

553
00:25:35,560 --> 00:25:38,280
Speaker 1: You know, most of us can't afford to fully fund

554
00:25:38,320 --> 00:25:40,560
Speaker 1: to four oh one K and a roth and save

555
00:25:40,680 --> 00:25:42,080
Speaker 1: you know, a good chunk of change for our kids

556
00:25:42,160 --> 00:25:44,320
Speaker 1: college and so well, where do you prioritize if you

557
00:25:44,359 --> 00:25:46,680
Speaker 1: have limited funds? And so that's kind of where we're

558
00:25:46,680 --> 00:25:49,080
Speaker 1: trying to hit. You know, Mark, I don't know exactly

559
00:25:49,160 --> 00:25:51,359
Speaker 1: how much money you have going towards all of those things,

560
00:25:51,640 --> 00:25:53,879
Speaker 1: but just kind of, you know, run through the list. Hey,

561
00:25:53,880 --> 00:25:55,840
Speaker 1: how am I doing saving for retirement? Am I saving

562
00:25:55,840 --> 00:25:57,560
Speaker 1: a good chunk? Am I at a good pace? And

563
00:25:57,600 --> 00:25:59,920
Speaker 1: that's really the first question to ask before you consider

564
00:26:00,000 --> 00:26:04,520
Speaker 1: are opening account? Just to clarify here, five twenty nine is,

565
00:26:04,680 --> 00:26:08,679
Speaker 1: like we said, designed specifically for college savings. We're touching

566
00:26:08,680 --> 00:26:11,960
Speaker 1: on retirement accounts right, so our favorite being a roth

567
00:26:12,080 --> 00:26:15,240
Speaker 1: ira A. We're talking about how we want to prioritize

568
00:26:15,280 --> 00:26:16,919
Speaker 1: that because that kind of comes first. You want to

569
00:26:17,480 --> 00:26:20,399
Speaker 1: have a solid financial footing before you're you're looking to

570
00:26:20,760 --> 00:26:24,080
Speaker 1: start saving for your kids college. But also to I

571
00:26:24,080 --> 00:26:26,600
Speaker 1: mean with a rath, you're able to withdraw and a

572
00:26:26,640 --> 00:26:28,320
Speaker 1: lot of people know this right, but you can withdraw

573
00:26:28,359 --> 00:26:31,919
Speaker 1: any of your contributions to a wrath for anything, taxing,

574
00:26:31,960 --> 00:26:35,000
Speaker 1: penalty free, tax exactly, tax and penalty free. So if

575
00:26:35,000 --> 00:26:37,200
Speaker 1: you're looking for some extra cash for when your kids

576
00:26:37,200 --> 00:26:39,920
Speaker 1: are are going off to school and you've been contributing,

577
00:26:39,960 --> 00:26:41,760
Speaker 1: you know, you've been maxing out, and say maybe even

578
00:26:41,760 --> 00:26:43,800
Speaker 1: you've got a spouse or a significant other as well

579
00:26:43,800 --> 00:26:47,280
Speaker 1: that's also been contributing to a wrath. I mean, I

580
00:26:47,280 --> 00:26:50,840
Speaker 1: mean right now, the the contributional limits year, I mean,

581
00:26:50,840 --> 00:26:52,679
Speaker 1: that's a lot of money that you can sock away

582
00:26:53,359 --> 00:26:55,800
Speaker 1: over not just eighteen years from from the time you

583
00:26:55,800 --> 00:26:58,359
Speaker 1: have a kid, but potentially since you had your job,

584
00:26:58,520 --> 00:27:00,280
Speaker 1: you know, since you were first employed, and if you

585
00:27:00,280 --> 00:27:03,520
Speaker 1: started saving then that's I mean, that's potentially decades worth

586
00:27:03,600 --> 00:27:06,679
Speaker 1: of of you know, years worth of savings that you

587
00:27:06,680 --> 00:27:09,080
Speaker 1: can draw on. That's not something you necessarily want to

588
00:27:09,119 --> 00:27:12,400
Speaker 1: count on, but it's worth noting that that's there as

589
00:27:12,480 --> 00:27:14,600
Speaker 1: as an option. Yeah, and the tax break depending on

590
00:27:14,640 --> 00:27:16,280
Speaker 1: what state you're in, it could be the exact same

591
00:27:16,359 --> 00:27:18,200
Speaker 1: essentially as a wrath or it could be a little

592
00:27:18,200 --> 00:27:20,560
Speaker 1: bit better. But there are a couple of risks involved,

593
00:27:20,640 --> 00:27:22,760
Speaker 1: right that you have to use it for education expenses,

594
00:27:22,840 --> 00:27:24,159
Speaker 1: and that if not, you're hit with a tax and

595
00:27:24,200 --> 00:27:27,040
Speaker 1: penalty and so the wrath is just this. I know

596
00:27:27,080 --> 00:27:29,480
Speaker 1: I'm retiring, right, I know I'm gonna need money at

597
00:27:29,520 --> 00:27:31,800
Speaker 1: some point in the future for myself to live on.

598
00:27:32,119 --> 00:27:35,159
Speaker 1: And so you're kind of skipping that gamble by putting

599
00:27:35,160 --> 00:27:38,560
Speaker 1: money directly in a wrath as opposed to in account. Awesome.

600
00:27:38,720 --> 00:27:40,280
Speaker 1: So the next what we want to talk about then,

601
00:27:40,320 --> 00:27:43,119
Speaker 1: are sort of some true alternatives and things that you

602
00:27:43,119 --> 00:27:45,639
Speaker 1: want to consider as you start thinking about college, as

603
00:27:45,640 --> 00:27:47,919
Speaker 1: you start having these discussions with your children, you know,

604
00:27:48,000 --> 00:27:49,960
Speaker 1: aside from Okay, how much should we save and where

605
00:27:49,960 --> 00:27:52,280
Speaker 1: should I put the money, there's sort of some you know,

606
00:27:52,359 --> 00:27:54,360
Speaker 1: let's like zoom out a little bit and even think

607
00:27:54,400 --> 00:27:59,120
Speaker 1: about college from you know, hopefully even a different perspective. Yeah,

608
00:27:59,200 --> 00:28:00,879
Speaker 1: so the first thing that can consider is kind of

609
00:28:00,880 --> 00:28:05,560
Speaker 1: a cultural shift that's happening with how our society views work.

610
00:28:06,200 --> 00:28:09,679
Speaker 1: And college is great for so many people, and I

611
00:28:09,680 --> 00:28:11,320
Speaker 1: think Matt and I would both say that it's been

612
00:28:11,760 --> 00:28:14,119
Speaker 1: worth it and good for us, but we also need

613
00:28:14,160 --> 00:28:15,840
Speaker 1: to kind of think outside the box a little bit.

614
00:28:16,080 --> 00:28:18,040
Speaker 1: There's lots of money to be made right now in

615
00:28:18,080 --> 00:28:21,440
Speaker 1: blue collar careers and people that are skilled laborers, good

616
00:28:21,480 --> 00:28:24,480
Speaker 1: with their hands, that have people skills, and so learning

617
00:28:24,480 --> 00:28:27,240
Speaker 1: a trade is becoming more and more valuable. You know,

618
00:28:27,280 --> 00:28:30,560
Speaker 1: I made a joke about underwater welding, but I mean, yeah,

619
00:28:30,560 --> 00:28:34,080
Speaker 1: that's true though, right, but underwater welders make a heck

620
00:28:34,119 --> 00:28:36,920
Speaker 1: of a lot more money than I do. And things

621
00:28:36,960 --> 00:28:40,320
Speaker 1: are changing so much in the workforce with jobs and

622
00:28:40,400 --> 00:28:43,680
Speaker 1: AI and computerization that there are a lot of jobs

623
00:28:43,720 --> 00:28:46,320
Speaker 1: right now that you know, people go get an English degree,

624
00:28:46,320 --> 00:28:49,880
Speaker 1: you get a master's degree, and the pay is so low.

625
00:28:50,600 --> 00:28:53,760
Speaker 1: But then there are industries out there that are begging

626
00:28:53,800 --> 00:28:57,520
Speaker 1: for workers that require you know, months or years of

627
00:28:57,600 --> 00:29:01,120
Speaker 1: training and no college that off times can be paid

628
00:29:01,160 --> 00:29:05,760
Speaker 1: for by that employer, and like while you're working, yeah, yeah,

629
00:29:05,800 --> 00:29:07,800
Speaker 1: and then you're essentially set up to make a heck

630
00:29:07,840 --> 00:29:10,240
Speaker 1: of a lot more money than someone with a history

631
00:29:10,440 --> 00:29:12,920
Speaker 1: or an English degree or a master's degree in a

632
00:29:12,960 --> 00:29:16,040
Speaker 1: lot of different areas. Yeah, So certainly those are jobs

633
00:29:16,080 --> 00:29:19,000
Speaker 1: and careers where a four year undergrad degree or or

634
00:29:19,040 --> 00:29:22,160
Speaker 1: additional schooling, yeah, wouldn't be necessary. And along those lines too, men,

635
00:29:22,200 --> 00:29:24,040
Speaker 1: even like artists, you know, like I think back to

636
00:29:24,160 --> 00:29:26,240
Speaker 1: like what Kate and I did when we started the

637
00:29:26,240 --> 00:29:29,880
Speaker 1: photography company. Did we need to go to college for that. No,

638
00:29:30,560 --> 00:29:32,960
Speaker 1: I mean we learned a ton. There's a lot of again,

639
00:29:33,000 --> 00:29:35,320
Speaker 1: like we said earlier, like a lot of intangible things

640
00:29:35,320 --> 00:29:38,240
Speaker 1: that we learned and in that period of time. But

641
00:29:38,240 --> 00:29:41,920
Speaker 1: at the same time, we've had zero formal education in

642
00:29:42,000 --> 00:29:44,200
Speaker 1: regards to what we actually do is as far as

643
00:29:44,200 --> 00:29:47,800
Speaker 1: photography specific, we've had zero formal education and running our

644
00:29:47,840 --> 00:29:51,680
Speaker 1: own business. We've learned all that through friends, through going

645
00:29:51,680 --> 00:29:54,160
Speaker 1: to the just different workshops in the city, going through

646
00:29:54,560 --> 00:29:57,600
Speaker 1: just researching online and with our world today. Man, there's

647
00:29:57,640 --> 00:29:59,640
Speaker 1: a lot of resources out there. There's a lot of

648
00:29:59,680 --> 00:30:02,680
Speaker 1: resource is online where you're able to learn the things

649
00:30:02,720 --> 00:30:04,600
Speaker 1: that you want to learn if you know that there's

650
00:30:04,640 --> 00:30:06,800
Speaker 1: something you want to pursue. And so yeah, I don't

651
00:30:06,800 --> 00:30:09,000
Speaker 1: think this means that you should push your child who

652
00:30:09,160 --> 00:30:15,040
Speaker 1: is super into history or English into underwater welding necessarily,

653
00:30:15,360 --> 00:30:17,480
Speaker 1: but it's just something to consider right that there are

654
00:30:17,520 --> 00:30:22,360
Speaker 1: a lot of high paying jobs plumbers, h fact technicians, contractors,

655
00:30:22,520 --> 00:30:25,520
Speaker 1: those sorts of jobs are in high demand right now,

656
00:30:25,600 --> 00:30:28,120
Speaker 1: and so you don't want to put a square peg

657
00:30:28,160 --> 00:30:30,280
Speaker 1: in around hole. But it's just something to consider as

658
00:30:30,840 --> 00:30:34,280
Speaker 1: uh as the shape of the workforce changes and the

659
00:30:34,480 --> 00:30:37,920
Speaker 1: kind of jobs that are being lost as technology advances.

660
00:30:38,320 --> 00:30:40,600
Speaker 1: It's just food for thought for when for when you're

661
00:30:40,600 --> 00:30:42,520
Speaker 1: thinking about where to put your money to save for

662
00:30:42,560 --> 00:30:44,760
Speaker 1: the future. Yeah, there's probably not gonna be a robot

663
00:30:44,760 --> 00:30:47,040
Speaker 1: that like can lay down, crawl upunder your sink and

664
00:30:47,240 --> 00:30:49,720
Speaker 1: you know, reconnect the pipe that your kid broke or

665
00:30:49,760 --> 00:30:52,880
Speaker 1: something like that. Right makes me think of our friend, uh,

666
00:30:53,000 --> 00:30:54,840
Speaker 1: our attorney friend that lives down the street from us,

667
00:30:54,920 --> 00:30:56,760
Speaker 1: you know, you like always complains about how much the

668
00:30:56,760 --> 00:30:59,440
Speaker 1: plumbers make. He's like, man, they're hourly rate is more

669
00:30:59,480 --> 00:31:02,480
Speaker 1: than I may. You know, it's like plumbers are going

670
00:31:02,520 --> 00:31:04,120
Speaker 1: to rule the world and they don't have all that

671
00:31:04,160 --> 00:31:07,880
Speaker 1: college set exactly. I mean, like we joke about it,

672
00:31:07,920 --> 00:31:09,200
Speaker 1: but you know, I mean there's a lot there's a

673
00:31:09,280 --> 00:31:11,000
Speaker 1: lot of actual truth theory, which is why, you know,

674
00:31:11,040 --> 00:31:13,280
Speaker 1: why we want to bring it up. So yeah, another

675
00:31:13,320 --> 00:31:15,840
Speaker 1: thing is you should really consider spending the money that

676
00:31:15,880 --> 00:31:18,720
Speaker 1: you would have saved in a five account right now

677
00:31:19,120 --> 00:31:23,840
Speaker 1: on things that will enricher kids, so interesting books, memberships

678
00:31:23,880 --> 00:31:28,280
Speaker 1: to museums, traveling. Man, I know that a lot of

679
00:31:28,400 --> 00:31:32,880
Speaker 1: kids who are able to travel in their preteen teenage years,

680
00:31:33,240 --> 00:31:36,320
Speaker 1: those sorts of experiences with their parents mean a lot

681
00:31:36,520 --> 00:31:39,400
Speaker 1: developing that relationship with you as the parent, right like

682
00:31:39,440 --> 00:31:43,080
Speaker 1: that father son, that mother, daughter or whatever. That family

683
00:31:43,120 --> 00:31:45,600
Speaker 1: time that you have together. Traveling is so meaningful. And

684
00:31:45,600 --> 00:31:47,800
Speaker 1: then on top of that, travel is such an eye

685
00:31:47,800 --> 00:31:51,360
Speaker 1: opening experience for all of us, but especially for a

686
00:31:51,440 --> 00:31:54,640
Speaker 1: kid to see another culture history, you know, going to

687
00:31:54,680 --> 00:31:57,040
Speaker 1: Europe and seeing things that are so much older than

688
00:31:57,080 --> 00:31:59,800
Speaker 1: we can even imagine here in the United States. Spending

689
00:31:59,800 --> 00:32:03,280
Speaker 1: money on things like that for your kids experiences now

690
00:32:03,480 --> 00:32:06,800
Speaker 1: as opposed to, uh, you know, basically lightening their college

691
00:32:06,800 --> 00:32:10,760
Speaker 1: bill later on, those can be such meaningful experiences, and

692
00:32:11,200 --> 00:32:13,800
Speaker 1: just consider whether your money is better spent now forming

693
00:32:13,840 --> 00:32:17,440
Speaker 1: those cultural experiences as opposed to saving for their future education.

694
00:32:17,960 --> 00:32:19,760
Speaker 1: That's great. I think what's important to note there too,

695
00:32:19,800 --> 00:32:21,880
Speaker 1: is that it's not like these experiences are going to

696
00:32:21,960 --> 00:32:25,200
Speaker 1: replace college, right. It's not like it's instead of setting

697
00:32:25,200 --> 00:32:27,920
Speaker 1: aside the money for tuition, we're gonna do this instead,

698
00:32:28,080 --> 00:32:30,080
Speaker 1: as if like that was able to be like a

699
00:32:30,120 --> 00:32:32,200
Speaker 1: one for one sort of thing. I think a good

700
00:32:32,240 --> 00:32:34,720
Speaker 1: way to look at it, too, is that it kind of,

701
00:32:34,760 --> 00:32:37,320
Speaker 1: like you said earlier, like opens their minds, like opens

702
00:32:37,320 --> 00:32:38,840
Speaker 1: their eyes a little bit, and I think it changes

703
00:32:38,880 --> 00:32:41,160
Speaker 1: the way they learn as well. It's it's kind of

704
00:32:41,400 --> 00:32:44,440
Speaker 1: opens their eyes to receiving knowledge in a different, more

705
00:32:44,480 --> 00:32:48,040
Speaker 1: informal sort of way. And you know, again, this sort

706
00:32:48,040 --> 00:32:51,120
Speaker 1: of points them in the direction of considers other things

707
00:32:51,120 --> 00:32:53,240
Speaker 1: other than the standard four year degree, which is what

708
00:32:53,320 --> 00:32:56,120
Speaker 1: Joel and I both did. But there's there's a lot

709
00:32:56,120 --> 00:32:57,880
Speaker 1: of options. And when you're able to see the whole

710
00:32:57,880 --> 00:32:59,560
Speaker 1: world for sort of what it is, I think it

711
00:32:59,600 --> 00:33:02,240
Speaker 1: does leaning you to literally look at the world slightly

712
00:33:02,280 --> 00:33:05,000
Speaker 1: differently than had you not have those experiences. It's sort

713
00:33:05,000 --> 00:33:09,120
Speaker 1: of just shapes the way kids learn and perceive new

714
00:33:09,160 --> 00:33:12,720
Speaker 1: information and sort of training them to learn more efficiently

715
00:33:12,760 --> 00:33:15,840
Speaker 1: and differently, is is what's really valuable there? Yeah, so

716
00:33:15,880 --> 00:33:19,440
Speaker 1: I completely agree. I mean, after after college, I got

717
00:33:19,440 --> 00:33:21,320
Speaker 1: a job and I worked there for like six months,

718
00:33:21,560 --> 00:33:23,120
Speaker 1: and then I quit and I went on a road

719
00:33:23,160 --> 00:33:26,800
Speaker 1: trip around the country for three months. And that changed

720
00:33:26,880 --> 00:33:29,240
Speaker 1: me in so many ways and just the way I

721
00:33:29,280 --> 00:33:31,640
Speaker 1: perceived the world, the things that I take seriously or

722
00:33:31,680 --> 00:33:35,600
Speaker 1: don't take seriously, the cultural norms that I assumed were

723
00:33:35,640 --> 00:33:39,440
Speaker 1: correct or that I thought were important, and then they

724
00:33:39,520 --> 00:33:42,000
Speaker 1: just didn't seem to hold as much wait for me

725
00:33:42,080 --> 00:33:44,440
Speaker 1: after that, right, and so I think that can be

726
00:33:44,480 --> 00:33:47,120
Speaker 1: the same for your kids. As you do those things

727
00:33:47,280 --> 00:33:49,920
Speaker 1: and as you maybe maybe instead of you know, saving

728
00:33:49,960 --> 00:33:53,800
Speaker 1: four account, you take them to a major musical that

729
00:33:53,840 --> 00:33:56,800
Speaker 1: comes to town, or pay for music lessons. Right, Learning

730
00:33:56,800 --> 00:33:59,200
Speaker 1: an instrument can train a child's brain in such an

731
00:33:59,280 --> 00:34:01,800
Speaker 1: interesting way. But I guess just think outside the box.

732
00:34:02,160 --> 00:34:03,640
Speaker 1: There are a lot of ways that you can put

733
00:34:03,640 --> 00:34:06,800
Speaker 1: that money to use that can grow your relationship with

734
00:34:06,840 --> 00:34:09,640
Speaker 1: your child or then also kind of grow their aptitude

735
00:34:09,719 --> 00:34:12,840
Speaker 1: for learning in different and creative ways that can have

736
00:34:12,880 --> 00:34:16,479
Speaker 1: a much longer lasting effect than essentially just lessening their

737
00:34:16,560 --> 00:34:18,839
Speaker 1: college bill that they have to pay after the four

738
00:34:18,920 --> 00:34:21,239
Speaker 1: years or up. After a quick break, we'll continue to

739
00:34:21,280 --> 00:34:25,279
Speaker 1: talk about some more legit alternatives to saving in a plan.

740
00:34:34,520 --> 00:34:36,120
Speaker 1: All right, Matt, we just kind of went high level

741
00:34:36,640 --> 00:34:39,480
Speaker 1: grand scheme of things. Let's talk specifics. It turns out

742
00:34:39,520 --> 00:34:42,759
Speaker 1: theft of kids get scholarship or grant money to go

743
00:34:42,840 --> 00:34:46,280
Speaker 1: to college. Lots of states offer scholarships and tuition support,

744
00:34:46,360 --> 00:34:49,799
Speaker 1: making college virtually free, and there are more that might

745
00:34:49,840 --> 00:34:52,799
Speaker 1: follow suits. So if you live in certain states, either

746
00:34:52,840 --> 00:34:56,760
Speaker 1: community college or state schools are essentially free in different

747
00:34:56,760 --> 00:34:59,200
Speaker 1: spots around the country, if you maintain a certain g

748
00:34:59,360 --> 00:35:03,680
Speaker 1: P A g P A s aren't even like that high. Man.

749
00:35:03,719 --> 00:35:05,400
Speaker 1: I was looking at some of these, some of the

750
00:35:05,400 --> 00:35:07,960
Speaker 1: different states, and like, I know, for the one that

751
00:35:08,000 --> 00:35:10,360
Speaker 1: Georgia has, like the Hope Scholarship, like at least he

752
00:35:10,440 --> 00:35:12,200
Speaker 1: used to be like you needed to maintain a three

753
00:35:12,200 --> 00:35:14,320
Speaker 1: point oh, but some of them are there in the twos,

754
00:35:14,360 --> 00:35:16,520
Speaker 1: you know. I was just like, man, this is free money, Like,

755
00:35:16,600 --> 00:35:20,240
Speaker 1: it's not that difficult right to maintain a see average

756
00:35:20,320 --> 00:35:22,480
Speaker 1: or above. But did you is that what you had?

757
00:35:22,520 --> 00:35:24,479
Speaker 1: Did you have Hope? Yeah? So the first two years

758
00:35:24,480 --> 00:35:26,600
Speaker 1: I went to an out of state school, a private school,

759
00:35:26,640 --> 00:35:28,640
Speaker 1: and ended up racking up a little bit of student loans.

760
00:35:29,120 --> 00:35:31,239
Speaker 1: But then I wiped up and I came back and

761
00:35:31,360 --> 00:35:33,960
Speaker 1: took the free money for the last exactly. Yeah. And

762
00:35:34,000 --> 00:35:37,400
Speaker 1: then in addition to like this big state scholarships like that,

763
00:35:37,440 --> 00:35:40,719
Speaker 1: there's just other smaller scholarships and work study programs. Uh.

764
00:35:40,880 --> 00:35:42,440
Speaker 1: I mean we kind of touched on that earlier, but

765
00:35:42,680 --> 00:35:44,560
Speaker 1: you just need to know where to find them. Fast

766
00:35:44,640 --> 00:35:48,400
Speaker 1: web dot com is a great site to to explore

767
00:35:49,640 --> 00:35:53,600
Speaker 1: of kids get scholarships or grants for college. I mentioned

768
00:35:53,600 --> 00:35:56,040
Speaker 1: that site so fast web. It's basically this site where

769
00:35:56,320 --> 00:35:57,880
Speaker 1: you get to I mean, you register and they just

770
00:35:57,960 --> 00:36:01,320
Speaker 1: have like this catalog of all the past scholarships and grants,

771
00:36:01,320 --> 00:36:03,359
Speaker 1: basically all the free money out there that's out there

772
00:36:03,400 --> 00:36:06,080
Speaker 1: for your education, and you kind of fill out like

773
00:36:06,080 --> 00:36:09,359
Speaker 1: a profile and it matches you up kind of automatically

774
00:36:09,600 --> 00:36:13,759
Speaker 1: for scholarships that you already qualify for, which sounds awesome, right,

775
00:36:13,960 --> 00:36:16,200
Speaker 1: It's amazing, Yeah, it really does. It's just such an

776
00:36:16,200 --> 00:36:18,799
Speaker 1: efficient smart way to to go about it. It kind

777
00:36:18,800 --> 00:36:21,520
Speaker 1: of makes me want to do it just to see

778
00:36:21,520 --> 00:36:24,359
Speaker 1: how much like how much uh, I mean scholarships could

779
00:36:24,360 --> 00:36:26,479
Speaker 1: I get, like right now, even because I mean, dude,

780
00:36:26,480 --> 00:36:28,120
Speaker 1: as a kid, I was terrible about that. I mean,

781
00:36:28,160 --> 00:36:29,640
Speaker 1: I got my I got the Hope and that pay

782
00:36:29,719 --> 00:36:31,239
Speaker 1: for all of my school, but I still had to

783
00:36:31,280 --> 00:36:34,360
Speaker 1: pay for books and other school fees and stuff like that.

784
00:36:34,400 --> 00:36:36,359
Speaker 1: And there's a lot of scholarships out there that can

785
00:36:36,440 --> 00:36:38,360
Speaker 1: even apply to your room and board, you know, like

786
00:36:38,360 --> 00:36:41,279
Speaker 1: these additional costs that you have that at least when

787
00:36:41,280 --> 00:36:43,560
Speaker 1: I was eighteen and going into college, I just assumed

788
00:36:43,600 --> 00:36:45,200
Speaker 1: that was just like, oh, that's just part of that's

789
00:36:45,200 --> 00:36:47,000
Speaker 1: just part of school. That's just what you have to pay.

790
00:36:47,080 --> 00:36:48,880
Speaker 1: But man, that's not the case. You know, had I

791
00:36:48,920 --> 00:36:51,400
Speaker 1: gotten these scholarships and scored some of these sweet programs

792
00:36:51,560 --> 00:36:52,840
Speaker 1: to pay for that, I would have been able to

793
00:36:52,920 --> 00:36:54,680
Speaker 1: keep that money in my pocket. Yeah, I want to

794
00:36:54,719 --> 00:36:57,000
Speaker 1: say to that when I was in school, I did

795
00:36:57,000 --> 00:36:59,959
Speaker 1: a work study program on campus, and that essentially paid

796
00:37:00,040 --> 00:37:03,319
Speaker 1: for a decent chunk of my education for those first

797
00:37:03,360 --> 00:37:04,960
Speaker 1: two years when I was going to the private school.

798
00:37:05,280 --> 00:37:08,160
Speaker 1: And man, it also helped me to take my education

799
00:37:08,239 --> 00:37:11,520
Speaker 1: really seriously. Yeah, that I kind of had a stake

800
00:37:11,600 --> 00:37:13,719
Speaker 1: in the game. Um that it wasn't just kind of

801
00:37:13,719 --> 00:37:16,640
Speaker 1: being handed to me on a silver platter. But you

802
00:37:16,680 --> 00:37:18,520
Speaker 1: know what, if I'm gonna go here, if I'm making

803
00:37:18,560 --> 00:37:20,600
Speaker 1: this choice like I'm, I gotta work for it. And

804
00:37:20,640 --> 00:37:22,279
Speaker 1: so I think that's like a worthwhile thing to ask

805
00:37:22,320 --> 00:37:24,319
Speaker 1: your child to do. To you know, five or ten

806
00:37:24,360 --> 00:37:27,719
Speaker 1: hours a week of work study on campus um or

807
00:37:27,840 --> 00:37:30,480
Speaker 1: or even potentially an off campus job. You know, college

808
00:37:30,520 --> 00:37:32,560
Speaker 1: is really fun. I remember being in college and thinking

809
00:37:32,600 --> 00:37:35,399
Speaker 1: I was busy, And now, you know, with the kind

810
00:37:35,400 --> 00:37:38,360
Speaker 1: of life I lead today, I can't imagine how I

811
00:37:38,440 --> 00:37:41,040
Speaker 1: thought I was ever busy in college. But your kid

812
00:37:41,160 --> 00:37:44,000
Speaker 1: can definitely handle taking you know, fifteen or sixteen or

813
00:37:44,040 --> 00:37:46,200
Speaker 1: seventeen hour course load, and then on top of it,

814
00:37:46,239 --> 00:37:48,319
Speaker 1: you know, working five to ten hours a week. I

815
00:37:48,320 --> 00:37:50,720
Speaker 1: think that creates a sense of ownership over that college

816
00:37:50,719 --> 00:37:53,600
Speaker 1: experience and can actually probably help them take their classes

817
00:37:53,640 --> 00:37:56,640
Speaker 1: more seriously at the same time. Dude, yeah, I completely

818
00:37:56,680 --> 00:37:58,880
Speaker 1: agree with that, Like having skin in the game, you know,

819
00:37:58,880 --> 00:38:01,640
Speaker 1: where like there's like sweat equity, Like literally you're working

820
00:38:01,800 --> 00:38:05,080
Speaker 1: and paying for your school. That is so valuable and

821
00:38:05,080 --> 00:38:08,319
Speaker 1: and honestly, like a lot of parents can't pay for

822
00:38:08,360 --> 00:38:11,360
Speaker 1: their or can't help contribute to their their children's education.

823
00:38:11,920 --> 00:38:13,680
Speaker 1: Like it sucks for a kid to have to pay

824
00:38:13,719 --> 00:38:15,600
Speaker 1: for their own college done, but it's way worse for

825
00:38:15,640 --> 00:38:17,759
Speaker 1: the parents to not be prepared for retirement because they

826
00:38:17,760 --> 00:38:19,600
Speaker 1: just don't have the time. You know, you don't have

827
00:38:19,640 --> 00:38:23,160
Speaker 1: the time to catch up because you're older, and like

828
00:38:23,480 --> 00:38:26,760
Speaker 1: kids are young and youth, you have the option to

829
00:38:26,760 --> 00:38:29,359
Speaker 1: take on multiple jobs and and work really hard when

830
00:38:29,400 --> 00:38:30,839
Speaker 1: you're younger to kind of dig your way out of

831
00:38:30,880 --> 00:38:33,160
Speaker 1: that student loan, you know. But yeah, it's a lot

832
00:38:33,280 --> 00:38:36,480
Speaker 1: tougher to be reaching the end of your working career

833
00:38:36,560 --> 00:38:40,120
Speaker 1: where you're going to have fewer options to save for retirement.

834
00:38:40,440 --> 00:38:43,160
Speaker 1: Another thing too, is uh. I think it's important to

835
00:38:43,200 --> 00:38:45,880
Speaker 1: explain the costs of college to your child and encourage

836
00:38:45,920 --> 00:38:48,600
Speaker 1: them to choose an affordable option. For instance, we mentioned

837
00:38:48,640 --> 00:38:51,640
Speaker 1: the state scholarships, but let's say your state doesn't offer that.

838
00:38:52,000 --> 00:38:55,080
Speaker 1: Community college is so much cheaper than going to a

839
00:38:55,080 --> 00:38:57,680
Speaker 1: private school or even just an in state college. The

840
00:38:57,719 --> 00:39:01,400
Speaker 1: average cost of in state community college is less than

841
00:39:01,440 --> 00:39:03,759
Speaker 1: five thousand dollars a year. So even if you can

842
00:39:03,800 --> 00:39:06,319
Speaker 1: convince your child to do their first two years at

843
00:39:06,320 --> 00:39:08,560
Speaker 1: a community college and then move on to get their

844
00:39:08,640 --> 00:39:12,000
Speaker 1: degree from another institution, just that one move alone could

845
00:39:12,000 --> 00:39:14,440
Speaker 1: save them tens of thousands of dollars in student loan

846
00:39:14,480 --> 00:39:17,080
Speaker 1: debt that they'll have to pay back over the next ten, fifteen,

847
00:39:17,120 --> 00:39:20,080
Speaker 1: twenty years. Makes me think of a community like the

848
00:39:20,120 --> 00:39:22,239
Speaker 1: TV show I love that show? Did you Yeah? Did

849
00:39:22,280 --> 00:39:25,279
Speaker 1: you watch that back? And all? The other thing too,

850
00:39:25,360 --> 00:39:27,880
Speaker 1: is that even if you can afford to pay for

851
00:39:27,880 --> 00:39:29,840
Speaker 1: your your your kids college, you may decide that you

852
00:39:29,840 --> 00:39:31,800
Speaker 1: don't want to, just depending on how you view the

853
00:39:31,880 --> 00:39:33,560
Speaker 1: view the world and just sort of your outlook on

854
00:39:33,640 --> 00:39:36,080
Speaker 1: finances and just what it is that you want your

855
00:39:36,120 --> 00:39:38,239
Speaker 1: children to experience, you might even decide that that's not

856
00:39:38,280 --> 00:39:40,000
Speaker 1: the best thing for you to do for them, you know,

857
00:39:40,080 --> 00:39:42,840
Speaker 1: as for your children as individuals. And we want to

858
00:39:42,920 --> 00:39:45,520
Speaker 1: encourage you guys to to not feel guilty, right, to

859
00:39:45,560 --> 00:39:47,200
Speaker 1: not feel the sort of pressure of like, oh, I

860
00:39:47,239 --> 00:39:49,240
Speaker 1: can't believe you're not saving for your your kids college.

861
00:39:49,920 --> 00:39:52,640
Speaker 1: The way we spend time with our our children has

862
00:39:52,680 --> 00:39:55,759
Speaker 1: a lot more bearing on on on the way that

863
00:39:55,840 --> 00:39:57,560
Speaker 1: we love them than just how much money we were

864
00:39:57,600 --> 00:39:59,960
Speaker 1: able to sock away and put towards their their school

865
00:40:00,080 --> 00:40:01,759
Speaker 1: that they may or may not you know, go to

866
00:40:02,120 --> 00:40:04,760
Speaker 1: down the road. So fight the urge to feel that guilt,

867
00:40:04,960 --> 00:40:06,440
Speaker 1: because I think there's a lot of things that we

868
00:40:06,480 --> 00:40:09,120
Speaker 1: do in regards from money, uh that's sort of guilt driven,

869
00:40:09,640 --> 00:40:11,520
Speaker 1: and it needs to be out of love. If if

870
00:40:11,719 --> 00:40:13,520
Speaker 1: in that's something that you want to do, then man,

871
00:40:13,600 --> 00:40:15,919
Speaker 1: go for it. But don't at all feel guilty if

872
00:40:15,960 --> 00:40:18,880
Speaker 1: that's either not a part of your financial plan because

873
00:40:18,880 --> 00:40:21,080
Speaker 1: it's not able to be, or if you just decide

874
00:40:21,080 --> 00:40:23,640
Speaker 1: that it's not going to be part of your financial plan. Yes,

875
00:40:23,680 --> 00:40:27,640
Speaker 1: so I think ultimately it's a plan, isn't a huge priority.

876
00:40:27,880 --> 00:40:29,640
Speaker 1: And if you do feel like your kids are definitely

877
00:40:29,680 --> 00:40:32,440
Speaker 1: gonna get a higher education and that's important to you,

878
00:40:32,600 --> 00:40:34,920
Speaker 1: and you really do want to say for their college education.

879
00:40:35,000 --> 00:40:38,439
Speaker 1: I may plan is a great vehicle, but make sure

880
00:40:38,480 --> 00:40:41,040
Speaker 1: that you're maxing out your retirement accounts first, because it's

881
00:40:41,080 --> 00:40:43,040
Speaker 1: more important to get that step right and make sure

882
00:40:43,040 --> 00:40:45,719
Speaker 1: that you're taking care of in retirement before you start

883
00:40:45,719 --> 00:40:47,920
Speaker 1: saving for your kid's future. And then let's say, even

884
00:40:47,960 --> 00:40:50,239
Speaker 1: if you're not sure if your kids are going to college, right,

885
00:40:50,320 --> 00:40:52,239
Speaker 1: like it's just they're kind of on the fence or

886
00:40:52,280 --> 00:40:54,239
Speaker 1: you think that they you know that they probably aren't

887
00:40:54,239 --> 00:40:56,160
Speaker 1: going to go to college, Well, the same thing applies

888
00:40:56,200 --> 00:40:59,200
Speaker 1: just continuing to invest like you normally would and if

889
00:40:59,200 --> 00:41:01,200
Speaker 1: they do end up into college, well there's ways that

890
00:41:01,239 --> 00:41:03,000
Speaker 1: you can sort of tap into some of that, like

891
00:41:03,040 --> 00:41:05,239
Speaker 1: we talked about earlier with the rath, or you can

892
00:41:05,239 --> 00:41:08,160
Speaker 1: just fund it out of your regular investments. You know,

893
00:41:08,200 --> 00:41:10,319
Speaker 1: it's not is it going to be completely optimized with

894
00:41:10,360 --> 00:41:12,080
Speaker 1: all the tax advantages that you would see in a

895
00:41:12,080 --> 00:41:15,839
Speaker 1: five nine. No, I mean to be honest, like, it's

896
00:41:15,880 --> 00:41:18,040
Speaker 1: not going to be like the five nine. There are advantages,

897
00:41:18,200 --> 00:41:20,400
Speaker 1: uh when it comes to the taxation on that, But

898
00:41:20,440 --> 00:41:21,920
Speaker 1: the fact is a lot of people just don't know

899
00:41:21,960 --> 00:41:24,319
Speaker 1: if their kids are going to go to college and yeah,

900
00:41:24,400 --> 00:41:26,799
Speaker 1: for them invest like you normally would. All right, Matt,

901
00:41:26,880 --> 00:41:29,080
Speaker 1: that brings up the question that I want to know

902
00:41:29,120 --> 00:41:31,200
Speaker 1: because I don't know whether you say for your kids

903
00:41:31,200 --> 00:41:34,360
Speaker 1: college or not. So you've got three young girls, have

904
00:41:34,480 --> 00:41:37,040
Speaker 1: you started saving for their college at all? Dude? That's

905
00:41:37,080 --> 00:41:40,239
Speaker 1: a great question, And honestly, the short answer is no, Like,

906
00:41:40,280 --> 00:41:44,080
Speaker 1: we haven't specifically, right, we haven't specifically set money aside

907
00:41:44,120 --> 00:41:47,520
Speaker 1: for college in a college shavings account. Next question, why

908
00:41:47,560 --> 00:41:50,960
Speaker 1: don't you love your children? But we have been smart

909
00:41:51,040 --> 00:41:52,560
Speaker 1: and wise with the money, and we have lots of

910
00:41:52,600 --> 00:41:56,040
Speaker 1: other investments, for instance real estate, you know, I mean

911
00:41:56,680 --> 00:42:00,000
Speaker 1: how much college you know, where we just sell us

912
00:42:00,000 --> 00:42:02,840
Speaker 1: single house and and take the proceeds from that. Shoot,

913
00:42:03,320 --> 00:42:05,960
Speaker 1: you'd be able to fund three kids worth of college,

914
00:42:06,000 --> 00:42:08,960
Speaker 1: you know, assuming they were in state and not going

915
00:42:08,960 --> 00:42:11,360
Speaker 1: off to an ivy League school. So how we started

916
00:42:11,360 --> 00:42:14,800
Speaker 1: saving specifically for that? No? But are we taking the

917
00:42:14,800 --> 00:42:16,680
Speaker 1: steps that we've talked about in this episode as far

918
00:42:16,719 --> 00:42:19,279
Speaker 1: as making sure that we have a solid foundation set

919
00:42:19,360 --> 00:42:21,480
Speaker 1: up from all for Kate and I to where we

920
00:42:21,600 --> 00:42:24,960
Speaker 1: have the option to contribute to their education down the road,

921
00:42:25,400 --> 00:42:27,440
Speaker 1: and so that yes, you know, like we have taken

922
00:42:27,440 --> 00:42:30,120
Speaker 1: those steps. It might be time soon, though, to to

923
00:42:30,120 --> 00:42:34,719
Speaker 1: start maybe sitting aside money specifically towards a for us,

924
00:42:35,000 --> 00:42:37,160
Speaker 1: because we've got three kids, you know, And that's one

925
00:42:37,160 --> 00:42:39,040
Speaker 1: of the things we talked about is that that's one

926
00:42:39,080 --> 00:42:41,080
Speaker 1: of the huge advantages of a five nine is to

927
00:42:41,120 --> 00:42:43,319
Speaker 1: be able to transfer that, uh and and take that

928
00:42:43,400 --> 00:42:45,840
Speaker 1: and necessarily have it maybe some for one kid, but

929
00:42:45,880 --> 00:42:47,400
Speaker 1: then if they don't use all of it, to be

930
00:42:47,400 --> 00:42:50,319
Speaker 1: able to you know, push that to to another. That's

931
00:42:50,360 --> 00:42:53,120
Speaker 1: just a sweet thing to be able to do, you know. Um.

932
00:42:53,160 --> 00:42:55,480
Speaker 1: And the likelihood that one of my three kids at

933
00:42:55,520 --> 00:42:57,319
Speaker 1: least would go to college, I think it is pretty high.

934
00:42:57,560 --> 00:42:59,360
Speaker 1: You've got two bright girls, though, what do yeah, what

935
00:42:59,400 --> 00:43:02,239
Speaker 1: are you thinking? Man? Yeah, currently, I'm not saving for

936
00:43:02,280 --> 00:43:05,400
Speaker 1: their college at all, and I just don't see it

937
00:43:05,480 --> 00:43:08,080
Speaker 1: becoming a priority anytime soon for us. You know, there's

938
00:43:08,080 --> 00:43:10,080
Speaker 1: a guy that I know who's a real estate investor,

939
00:43:10,160 --> 00:43:12,759
Speaker 1: and he essentially, when his daughter was born, bought a

940
00:43:12,840 --> 00:43:15,600
Speaker 1: quad quad plex and bought it on a fifteen year

941
00:43:15,640 --> 00:43:19,239
Speaker 1: note and said, you know what, this essentially is her

942
00:43:19,280 --> 00:43:21,880
Speaker 1: college education. Right here, I'm kind of more partial to

943
00:43:21,920 --> 00:43:25,000
Speaker 1: real estate. It's something that I really enjoy and uh

944
00:43:25,239 --> 00:43:27,360
Speaker 1: so I'd rather put my money there and kind of

945
00:43:27,360 --> 00:43:30,120
Speaker 1: see what happens and maybe not have the most tax

946
00:43:30,120 --> 00:43:34,080
Speaker 1: advantaged account possible saving for a kid's college, but hopefully

947
00:43:34,080 --> 00:43:36,640
Speaker 1: I'll be pointing my girls in the direction of cheaper

948
00:43:36,680 --> 00:43:39,200
Speaker 1: school or free school when it comes to you know,

949
00:43:39,239 --> 00:43:43,440
Speaker 1: state scholarships and other scholarships and grants that exist, and

950
00:43:43,480 --> 00:43:45,360
Speaker 1: so very little of my money will have to go

951
00:43:45,400 --> 00:43:49,000
Speaker 1: towards our education, or maybe they'll choose another path altogether.

952
00:43:49,280 --> 00:43:52,040
Speaker 1: Like we mentioned, you know, our society is changing when

953
00:43:52,040 --> 00:43:54,239
Speaker 1: it comes to work, and I think like work could

954
00:43:54,239 --> 00:43:56,399
Speaker 1: look a whole lot different by the time they are

955
00:43:56,480 --> 00:43:59,680
Speaker 1: college age, and that will be in self driving cars

956
00:43:59,800 --> 00:44:02,320
Speaker 1: and you know, AI all these different things. Man, I

957
00:44:02,400 --> 00:44:04,200
Speaker 1: don't know what the world's gonna look like. And so

958
00:44:04,280 --> 00:44:06,239
Speaker 1: I'd hate to be putting money in something like that

959
00:44:06,480 --> 00:44:09,360
Speaker 1: as opposed to, you know, building my wealth for the

960
00:44:09,400 --> 00:44:12,279
Speaker 1: future that they will certainly be able to partake of

961
00:44:12,480 --> 00:44:14,960
Speaker 1: in other ways. I just hate to put my money,

962
00:44:15,239 --> 00:44:18,040
Speaker 1: you know, in this one account that's reserved for one purpose,

963
00:44:18,160 --> 00:44:20,680
Speaker 1: that and that alone. Yeah, as opposed to building my

964
00:44:20,840 --> 00:44:23,480
Speaker 1: other assets. Yeah, do you think that would change if

965
00:44:23,520 --> 00:44:25,920
Speaker 1: you had more than two kids? That's a good question.

966
00:44:26,160 --> 00:44:28,600
Speaker 1: I don't think so if if you had five, though,

967
00:44:28,640 --> 00:44:30,520
Speaker 1: you know, you're like, okay, certainly one of these five

968
00:44:30,600 --> 00:44:32,319
Speaker 1: kids wouldn't like when you want to get like the

969
00:44:32,320 --> 00:44:36,440
Speaker 1: sweet tax benefits of of of the five. Even I'm

970
00:44:36,480 --> 00:44:39,160
Speaker 1: not saying that you would want to like completely dump

971
00:44:39,280 --> 00:44:40,759
Speaker 1: tons of money in there, because that's the other thing

972
00:44:40,760 --> 00:44:42,719
Speaker 1: you gonna be careful of. Two is it's not over

973
00:44:42,719 --> 00:44:45,840
Speaker 1: fun to five because yeah, you're earmarking that money, and

974
00:44:45,880 --> 00:44:47,840
Speaker 1: that's the only thing that you can do with that money.

975
00:44:47,920 --> 00:44:50,680
Speaker 1: I'll say, I think if I had more kids and

976
00:44:50,920 --> 00:44:53,560
Speaker 1: had a higher income, it would change things, like if

977
00:44:53,600 --> 00:44:56,600
Speaker 1: the essentially the tax benefit was greater. But where I'm

978
00:44:56,640 --> 00:44:59,120
Speaker 1: at income level wives, it makes more sense for me

979
00:44:59,160 --> 00:45:01,799
Speaker 1: to do to a roth as opposed to trying to

980
00:45:02,000 --> 00:45:06,080
Speaker 1: limit my tax exposure. And so I'd rather take the

981
00:45:06,120 --> 00:45:08,920
Speaker 1: tax hit now, uh and not take it later. And

982
00:45:09,000 --> 00:45:10,720
Speaker 1: that's why I do a wrath. But you know, people

983
00:45:10,760 --> 00:45:12,799
Speaker 1: that are making a lot higher income. Let's say you're

984
00:45:12,800 --> 00:45:15,759
Speaker 1: making you know, two fifty thousand dollars a year, you know,

985
00:45:15,800 --> 00:45:19,000
Speaker 1: I think a five account makes more sense for you

986
00:45:19,080 --> 00:45:22,120
Speaker 1: if you're a higher income earner because deferring those taxes

987
00:45:22,160 --> 00:45:24,439
Speaker 1: now actually makes a lot more sense. And so if

988
00:45:24,480 --> 00:45:27,560
Speaker 1: I was in a higher tax bracket, I would completely

989
00:45:27,600 --> 00:45:31,359
Speaker 1: consider a five account a lot more seriously. Be where

990
00:45:31,400 --> 00:45:33,279
Speaker 1: I'm at now, I just it just really doesn't make

991
00:45:33,320 --> 00:45:35,839
Speaker 1: that much sense. Yeah, man, Once Port and Port starts

992
00:45:35,880 --> 00:45:37,880
Speaker 1: making bank, you're gonna have to want to get that

993
00:45:37,920 --> 00:45:41,320
Speaker 1: tax deferred growth. That's a good point. Um, Well, Mark,

994
00:45:41,719 --> 00:45:44,560
Speaker 1: thanks again for the question. Man. We talked a lot

995
00:45:44,640 --> 00:45:47,600
Speaker 1: about the five twenty nine and saving for college and

996
00:45:47,640 --> 00:45:50,479
Speaker 1: just alternatives to that, and hopefully we give you plenty

997
00:45:50,520 --> 00:45:52,279
Speaker 1: to think about. It's not a you know, it's not

998
00:45:52,320 --> 00:45:55,440
Speaker 1: a clear cut, straight yes or no answer. There's a

999
00:45:55,440 --> 00:45:57,440
Speaker 1: lot of Again with a personal finance man, there's just

1000
00:45:57,520 --> 00:46:01,279
Speaker 1: so much personal preference that kind of goes into this

1001
00:46:01,400 --> 00:46:03,840
Speaker 1: and things to consider for you and your own family

1002
00:46:03,920 --> 00:46:06,839
Speaker 1: and your children. Hopefully, though, this did give you more

1003
00:46:06,840 --> 00:46:09,480
Speaker 1: information and you feel a little more confident in whatever

1004
00:46:09,520 --> 00:46:12,839
Speaker 1: decision you and your wife decide to move forward with.

1005
00:46:13,000 --> 00:46:14,840
Speaker 1: And if I could boil it down to two things,

1006
00:46:14,880 --> 00:46:18,960
Speaker 1: I would say, prioritize your own retirement savings very highly

1007
00:46:19,080 --> 00:46:22,360
Speaker 1: number one, And then you know what, spend your money

1008
00:46:22,520 --> 00:46:24,759
Speaker 1: now on things that will enrich your kids and enrich

1009
00:46:24,800 --> 00:46:27,560
Speaker 1: your family. Even if your kids end up racking up

1010
00:46:27,560 --> 00:46:30,359
Speaker 1: some student loan debt because you didn't prioritize saving for

1011
00:46:30,440 --> 00:46:33,440
Speaker 1: their college education. If you prioritize those first two things,

1012
00:46:33,719 --> 00:46:36,239
Speaker 1: you know what, you'll be leading a rich life. And

1013
00:46:36,880 --> 00:46:39,040
Speaker 1: that's what we care about. Yeah, we try to maintain

1014
00:46:39,080 --> 00:46:41,080
Speaker 1: that balance, man, like we want to live life now. Yeah,

1015
00:46:41,160 --> 00:46:43,279
Speaker 1: like you said, but at the same time, also be

1016
00:46:43,320 --> 00:46:45,120
Speaker 1: smart with our money. So it's it's it's tough to

1017
00:46:45,239 --> 00:46:47,840
Speaker 1: find that balance as an individual and for your family.

1018
00:46:47,920 --> 00:46:51,239
Speaker 1: But hopefully this helps. All right, Quickly back to the beer,

1019
00:46:51,239 --> 00:46:55,279
Speaker 1: Matt the Firestone Walker. I'm not even gonna pronounce it

1020
00:46:55,320 --> 00:46:59,240
Speaker 1: while they all with strawberries from our friend, uh Josh,

1021
00:46:59,440 --> 00:47:03,319
Speaker 1: thank you for this beer, like absolutely delicious. One of us,

1022
00:47:03,520 --> 00:47:07,080
Speaker 1: one of us should have taken French and in college,

1023
00:47:07,600 --> 00:47:10,399
Speaker 1: but we didn't want to waste the time. But man

1024
00:47:10,520 --> 00:47:16,120
Speaker 1: mouth puckering lye tart, delicious strawberry, like robust strawberry, you know,

1025
00:47:16,239 --> 00:47:19,360
Speaker 1: like it was not like this just little strawberry fragrance.

1026
00:47:19,440 --> 00:47:22,160
Speaker 1: It's like this full on. It's like I was chewing

1027
00:47:22,160 --> 00:47:24,399
Speaker 1: a strawberry, but not like in a bad way. It's

1028
00:47:24,400 --> 00:47:26,120
Speaker 1: not like this was a chewy beer. It just had

1029
00:47:26,239 --> 00:47:29,359
Speaker 1: lots of flavor. Awesome for the summer with this heat

1030
00:47:30,120 --> 00:47:32,799
Speaker 1: and having a refreshing beer. I love this man. This

1031
00:47:32,880 --> 00:47:35,400
Speaker 1: is great. Yeah, thanks everyone for listening. Our home on

1032
00:47:35,440 --> 00:47:37,960
Speaker 1: the web is how to money dot com. We will

1033
00:47:38,000 --> 00:47:40,480
Speaker 1: have show notes up for this episode and uh, if

1034
00:47:40,520 --> 00:47:42,480
Speaker 1: you like what you hear, be sure to let us know.

1035
00:47:42,880 --> 00:47:45,279
Speaker 1: We would really appreciate it if you would review and

1036
00:47:45,320 --> 00:47:50,040
Speaker 1: subscribe either on Apple Podcast or our favorite app, cast Box.

1037
00:47:50,520 --> 00:47:53,600
Speaker 1: So until next time, Man, best Friends Out, Best Friends Out.

1038
00:48:01,960 --> 00:48:02,000
Speaker 1: M