1 00:00:00,080 --> 00:00:02,920 Speaker 1: Welcome to How the Money. I'm Joel and I am Matt. 2 00:00:03,040 --> 00:00:25,119 Speaker 1: Today we're answering your listener questions. That's Rachel. This is 3 00:00:25,120 --> 00:00:28,600 Speaker 1: our Listener Questions Monday episode where we have five most 4 00:00:28,640 --> 00:00:31,320 Speaker 1: excellent questions that we're gonna get to during this episode. 5 00:00:31,640 --> 00:00:35,120 Speaker 1: You've got a listener who's thinking about buying a rental car. 6 00:00:35,200 --> 00:00:38,040 Speaker 1: That's right, buying a rental car, not renting a rental car, 7 00:00:38,320 --> 00:00:40,479 Speaker 1: which I don't know if you've ever taken a question 8 00:00:40,520 --> 00:00:44,240 Speaker 1: about rental cars before, just generally speaking, have we We've 9 00:00:44,280 --> 00:00:46,520 Speaker 1: talked about the exordinan price and then how to save 10 00:00:46,560 --> 00:00:48,280 Speaker 1: money on rental cars. But as far as a listener 11 00:00:48,320 --> 00:00:50,479 Speaker 1: who had like a rental car question, this might be 12 00:00:50,520 --> 00:00:52,720 Speaker 1: the deepest dive that we're ever gonna do well so 13 00:00:52,760 --> 00:00:56,520 Speaker 1: far on rental cars listeners. She has a roth conversion question, 14 00:00:56,640 --> 00:00:59,480 Speaker 1: and someone else, uh, they're thinking about using a duplex 15 00:00:59,480 --> 00:01:01,720 Speaker 1: in order to house hack. She's got a couple of 16 00:01:01,800 --> 00:01:04,480 Speaker 1: questions about that, plus two weathers. Looking forward to get 17 00:01:04,560 --> 00:01:06,920 Speaker 1: all of these today. Yeah, for sure, let's get into it. 18 00:01:06,959 --> 00:01:09,280 Speaker 1: But but real like, I just wanna tell you a 19 00:01:09,319 --> 00:01:13,280 Speaker 1: brief story in in my life rug. Yes, so I 20 00:01:13,319 --> 00:01:15,520 Speaker 1: gotta discount on the roads. Here's the thing. Moved into 21 00:01:15,560 --> 00:01:18,080 Speaker 1: a new house not too long ago, right, everybody knows 22 00:01:18,160 --> 00:01:20,680 Speaker 1: that if you listen to that that episode on us moving, 23 00:01:20,760 --> 00:01:23,319 Speaker 1: and and since we've talked about our move a little bit, well, 24 00:01:24,040 --> 00:01:26,000 Speaker 1: we had a rug a room without a rug, and 25 00:01:26,160 --> 00:01:28,280 Speaker 1: like the Big Lebowski, we needed a rug to tie 26 00:01:28,280 --> 00:01:30,760 Speaker 1: the room together. That it was quite equally up in 27 00:01:30,800 --> 00:01:33,160 Speaker 1: there and exactly that rug in there. Yeah, the house 28 00:01:33,200 --> 00:01:35,559 Speaker 1: is still think about the acoustics of spaces. Its true. 29 00:01:35,640 --> 00:01:38,759 Speaker 1: I think I probably think about acoustics of spaces way 30 00:01:38,760 --> 00:01:41,400 Speaker 1: more than the average person. Well, and I personally I 31 00:01:41,480 --> 00:01:44,160 Speaker 1: love hardwood floors throughout a home and then having rugs 32 00:01:44,160 --> 00:01:47,000 Speaker 1: in each room and like, just I just don't like 33 00:01:47,080 --> 00:01:50,360 Speaker 1: the idea of having carpet all the way through. Not 34 00:01:50,400 --> 00:01:53,000 Speaker 1: my jam a hater, Yeah I am, I am, And 35 00:01:53,040 --> 00:01:55,760 Speaker 1: so our our house fortunately does have hardwoods with carpets. 36 00:01:56,040 --> 00:01:57,960 Speaker 1: So we got we had to get a new rug 37 00:01:58,000 --> 00:01:59,200 Speaker 1: for one of these rooms where we didn't have a 38 00:01:59,280 --> 00:02:01,840 Speaker 1: rug for and uh, it was actual it was like 39 00:02:01,880 --> 00:02:04,280 Speaker 1: the most expensive roug we've ever purchased. It was it 40 00:02:04,320 --> 00:02:08,000 Speaker 1: was something like six for a rug. I felt fancy. 41 00:02:08,040 --> 00:02:09,760 Speaker 1: I was like I don't know if I feel comfortable 42 00:02:09,760 --> 00:02:12,080 Speaker 1: spending this much money on a rug, but we had 43 00:02:12,320 --> 00:02:14,320 Speaker 1: budgeted for some of the things we're gonna need to 44 00:02:14,320 --> 00:02:15,400 Speaker 1: buy in the new house, and this is one of 45 00:02:15,400 --> 00:02:18,000 Speaker 1: the things that made the cut. So uh. Once we 46 00:02:18,080 --> 00:02:20,480 Speaker 1: got it, though, we're like, man, this rug sheds a 47 00:02:20,520 --> 00:02:23,480 Speaker 1: little more than we than we had hoped. And we're like, man, 48 00:02:23,480 --> 00:02:25,520 Speaker 1: if we had paid like three hundred bucks in this rug, 49 00:02:25,680 --> 00:02:29,760 Speaker 1: Like I like this cheaper rug of plastic. Yeah, I 50 00:02:29,800 --> 00:02:31,800 Speaker 1: was like, I'm not gonna fee. I wouldn't feel as 51 00:02:31,800 --> 00:02:33,359 Speaker 1: bad if it was three hundred bucks, but it's shedding 52 00:02:33,480 --> 00:02:36,800 Speaker 1: enough for a six dollar rug. I was like this, 53 00:02:36,800 --> 00:02:39,519 Speaker 1: this kind of sucks. And so I went onto the website. 54 00:02:39,720 --> 00:02:42,600 Speaker 1: I was gonna, like, you know, initiate a return process 55 00:02:42,880 --> 00:02:44,800 Speaker 1: in this retailer. What they do is there's like, well, 56 00:02:44,840 --> 00:02:46,640 Speaker 1: why are you returning? Why are you returning this rug? 57 00:02:47,000 --> 00:02:48,960 Speaker 1: And so I kind of say to a couple of 58 00:02:48,960 --> 00:02:50,760 Speaker 1: pictures and showed them like, hey, you know, the rugs 59 00:02:50,800 --> 00:02:55,000 Speaker 1: not quite like we had hoped. And so immediately, without 60 00:02:55,040 --> 00:02:58,640 Speaker 1: even interacting with someone on staff at the website or 61 00:02:58,720 --> 00:03:01,160 Speaker 1: or having to even opened up a chat, they say, well, 62 00:03:01,200 --> 00:03:03,880 Speaker 1: would you like to keep this rug if we give 63 00:03:03,919 --> 00:03:08,160 Speaker 1: you a discount, And I was like, yeah, that's crazy. 64 00:03:08,200 --> 00:03:10,400 Speaker 1: And I was like, well, considering we had said we 65 00:03:10,440 --> 00:03:16,520 Speaker 1: would keep this, you're gonna percent is a steep So 66 00:03:16,560 --> 00:03:19,800 Speaker 1: two something dollars two eighty dollars or something like that. 67 00:03:20,040 --> 00:03:22,480 Speaker 1: The crab refunded to us, and I was like, you 68 00:03:22,480 --> 00:03:25,040 Speaker 1: know what, this rug, it doesn't feel really as like 69 00:03:25,080 --> 00:03:26,720 Speaker 1: as bad of a purchase. I don't feel as bad 70 00:03:26,720 --> 00:03:28,840 Speaker 1: about it now that like an extra forty percent on 71 00:03:28,840 --> 00:03:30,320 Speaker 1: How does that make you feel about just the general 72 00:03:30,360 --> 00:03:33,720 Speaker 1: markup that retailers are able to hit us with that 73 00:03:33,760 --> 00:03:37,000 Speaker 1: they're just without any conversation at all, that they're just like, oh, okay, 74 00:03:37,040 --> 00:03:38,920 Speaker 1: you can have it for basically half. Right, I'm like, 75 00:03:38,960 --> 00:03:40,400 Speaker 1: did I now get it at their cost or they 76 00:03:40,400 --> 00:03:43,000 Speaker 1: still make some sort of money? Not sure, but yeah, 77 00:03:43,000 --> 00:03:45,520 Speaker 1: it was one of those nice, nice parks where I'm like, Okay, 78 00:03:45,520 --> 00:03:48,200 Speaker 1: now we really like the way the rug looks, and 79 00:03:48,240 --> 00:03:51,160 Speaker 1: as long as we vacuumit, you know a few times 80 00:03:51,160 --> 00:03:53,440 Speaker 1: a week, the sdding doesn't look too bad and it's 81 00:03:53,440 --> 00:03:55,760 Speaker 1: a it's a it's a cool rug. But I feel 82 00:03:55,760 --> 00:03:57,800 Speaker 1: a lot better now, you knowing I've paid three d 83 00:03:57,960 --> 00:04:00,800 Speaker 1: something dollars as opposed to six hundred. Totally agree. Man, Yeah, 84 00:04:00,800 --> 00:04:02,520 Speaker 1: and so I think the moral of the story here 85 00:04:02,640 --> 00:04:04,880 Speaker 1: is that it never hurts to ask, because I mean, 86 00:04:05,080 --> 00:04:07,760 Speaker 1: now more than ever, I think retailers are willing to 87 00:04:08,040 --> 00:04:11,360 Speaker 1: take great lengths in order to protect the reputation online, 88 00:04:11,600 --> 00:04:14,200 Speaker 1: and if they've got a customer who's reaching out to them, 89 00:04:14,240 --> 00:04:16,680 Speaker 1: they're thinking, man, that's that's that's probably also is going 90 00:04:16,720 --> 00:04:18,320 Speaker 1: to be a customer who might leave a review for 91 00:04:18,400 --> 00:04:21,880 Speaker 1: us if you weren't completely satisfied, obviously, and so their 92 00:04:21,880 --> 00:04:24,120 Speaker 1: ability to offer you a discount like that, I think 93 00:04:24,160 --> 00:04:26,680 Speaker 1: that's the mindset to take. And of course, as long 94 00:04:26,680 --> 00:04:28,279 Speaker 1: as you're not a jerk about it, and granted you're 95 00:04:28,320 --> 00:04:31,760 Speaker 1: like typing on the computer like tech tictic, literally interacting 96 00:04:31,920 --> 00:04:35,240 Speaker 1: with some sort of preset algorithm. Yeah, and bottom bottom line, 97 00:04:35,240 --> 00:04:37,840 Speaker 1: I think it's okay to ask for a discount almost 98 00:04:38,120 --> 00:04:40,120 Speaker 1: anywhere if you yell at the algorithm, what does that 99 00:04:40,160 --> 00:04:42,560 Speaker 1: make you if you just yell at your computer. I 100 00:04:42,640 --> 00:04:44,760 Speaker 1: think it's okay to ask as long as you if 101 00:04:44,760 --> 00:04:47,000 Speaker 1: you are interacting with somebody, that you do it respectfully 102 00:04:47,040 --> 00:04:49,240 Speaker 1: and that you're not demanding a discount, and that you 103 00:04:49,279 --> 00:04:52,440 Speaker 1: aren't necessarily acting like you're you're entitled to a discount. Yeah, 104 00:04:52,480 --> 00:04:54,360 Speaker 1: that's the big difference, I think. Yeah, so so good 105 00:04:54,360 --> 00:04:56,560 Speaker 1: on all modern I'll mention that's the website that that 106 00:04:56,640 --> 00:05:00,279 Speaker 1: offered me the discount for for holding onto the that 107 00:05:00,320 --> 00:05:03,600 Speaker 1: we that we liked and picked me up a discount 108 00:05:03,640 --> 00:05:06,360 Speaker 1: right here. Yes, I don't know if that's how it works. 109 00:05:06,360 --> 00:05:08,280 Speaker 1: It may not be replicable. And you know what count 110 00:05:08,520 --> 00:05:10,840 Speaker 1: You never know. The algorithm might might like me more 111 00:05:10,880 --> 00:05:13,800 Speaker 1: than it likes you, so you might get discount. Did 112 00:05:13,800 --> 00:05:16,840 Speaker 1: you see the camera light click on? When like hello, 113 00:05:16,920 --> 00:05:20,240 Speaker 1: They're like, oh look he's cute. All right, this guy? 114 00:05:20,800 --> 00:05:23,720 Speaker 1: All right, let's get onto listening questions Matt and for 115 00:05:23,839 --> 00:05:25,560 Speaker 1: everybody out there listening, if you have a question you 116 00:05:25,560 --> 00:05:27,840 Speaker 1: want Matt Night a tackle on an upcoming episode, we 117 00:05:27,880 --> 00:05:29,200 Speaker 1: would love to hear it. Just go to how to 118 00:05:29,279 --> 00:05:32,839 Speaker 1: money dot com slash ask. There are simple directions there 119 00:05:32,839 --> 00:05:34,520 Speaker 1: for you to record a voice memo send it our 120 00:05:34,600 --> 00:05:36,440 Speaker 1: way so we can take it hopefully on the next 121 00:05:36,760 --> 00:05:39,480 Speaker 1: Listening Questions episode. Right, but you almost forgot to introduce 122 00:05:39,480 --> 00:05:42,880 Speaker 1: the beer did which we're enjoying. Can I forget about that? Well, 123 00:05:42,920 --> 00:05:45,160 Speaker 1: it's Okay, things mixed up a little bit. Hey, we 124 00:05:45,160 --> 00:05:47,280 Speaker 1: can switch it up every now and then. But this 125 00:05:47,360 --> 00:05:50,400 Speaker 1: is how how do you say this, chauffen Hoffer, Is 126 00:05:50,440 --> 00:05:52,919 Speaker 1: that how you say? I believe? So? Okay, chauffen Hoffer, 127 00:05:53,120 --> 00:05:56,480 Speaker 1: this is a great fruit half a Wizen looking forward 128 00:05:56,480 --> 00:05:58,839 Speaker 1: to enjoying this one and talking about it at the 129 00:05:58,920 --> 00:06:00,960 Speaker 1: end of the episode for sure. All right, Well let's 130 00:06:00,960 --> 00:06:02,920 Speaker 1: get to that first question. All right, This one is 131 00:06:03,000 --> 00:06:07,479 Speaker 1: about buying a rental car. Hi, Joel the Matte. This 132 00:06:07,560 --> 00:06:10,200 Speaker 1: is Eric and Tampa, Florida. I'm a big fan of 133 00:06:10,240 --> 00:06:13,520 Speaker 1: your podcast. I'm looking to purchase a vehicle for my 134 00:06:13,600 --> 00:06:17,280 Speaker 1: son who's about to test for his driver's license. One 135 00:06:17,360 --> 00:06:20,200 Speaker 1: of the places where I've been looking or the sales 136 00:06:20,240 --> 00:06:24,440 Speaker 1: outlets associated with the rental car companies. Is there any 137 00:06:24,520 --> 00:06:26,840 Speaker 1: advice that you would offer when searching for a used 138 00:06:26,920 --> 00:06:29,919 Speaker 1: vehicle from one of these vendors that's different from the 139 00:06:29,960 --> 00:06:32,320 Speaker 1: advice that you would offer if you're looking at a 140 00:06:32,360 --> 00:06:36,000 Speaker 1: traditional dealership or from one of the players like CarMax 141 00:06:36,320 --> 00:06:39,600 Speaker 1: or Carbona. Thanks all right, Eric, thank you so much 142 00:06:39,600 --> 00:06:41,640 Speaker 1: for that question. And generally speaking, I think any of 143 00:06:41,640 --> 00:06:44,400 Speaker 1: the advice we'd give if you are buying any used car, 144 00:06:44,440 --> 00:06:48,599 Speaker 1: regardless of you're buying from. Those pieces of advice will hold, 145 00:06:48,680 --> 00:06:50,640 Speaker 1: but we will definitely make sure to address some of 146 00:06:50,640 --> 00:06:54,599 Speaker 1: the specifics about these rental car companies and real quick 147 00:06:54,640 --> 00:06:57,320 Speaker 1: to just a quick note, man, what a milestone you know, 148 00:06:57,600 --> 00:07:00,640 Speaker 1: the ability to start teaching your son how to drive. 149 00:07:00,680 --> 00:07:03,160 Speaker 1: Hopefully soon you'll have his driver's license milestone I am 150 00:07:03,200 --> 00:07:06,440 Speaker 1: not looking forward to. You're probably hoping that cars will 151 00:07:06,440 --> 00:07:09,240 Speaker 1: be fully autonomous by the time our kids are getting 152 00:07:09,840 --> 00:07:12,080 Speaker 1: most you have seven years okay before this impacts me, 153 00:07:12,120 --> 00:07:13,720 Speaker 1: so get on it. So I hate to get like 154 00:07:13,760 --> 00:07:17,640 Speaker 1: philosophical right off the bat without answering any money questions 155 00:07:17,640 --> 00:07:19,000 Speaker 1: at all. But do you think by the time our 156 00:07:19,080 --> 00:07:22,840 Speaker 1: kids are older that they're going to value and prize 157 00:07:23,040 --> 00:07:27,160 Speaker 1: the physical geographic independence like we valued when we turned sixteen? 158 00:07:27,320 --> 00:07:29,320 Speaker 1: I think it's I think don't care. It doesn't seem 159 00:07:29,360 --> 00:07:31,520 Speaker 1: like they care because getting licenses in fewer numbers and 160 00:07:31,640 --> 00:07:34,559 Speaker 1: understandably so like they're like the world through their phones 161 00:07:34,600 --> 00:07:36,680 Speaker 1: more exactly. Yeah, you see surveys and kids would rather 162 00:07:36,720 --> 00:07:41,400 Speaker 1: teenagers would rather maintain their social media than actually get 163 00:07:41,400 --> 00:07:43,560 Speaker 1: the driver's license, and like they would rather have that 164 00:07:43,680 --> 00:07:47,920 Speaker 1: virtual freedom in autonomy and independence as opposed to like 165 00:07:48,120 --> 00:07:51,680 Speaker 1: real physical like geographic independence, which is no judgment here, 166 00:07:51,680 --> 00:07:55,240 Speaker 1: it's just really interesting. It's just we are definitely living 167 00:07:55,400 --> 00:07:58,240 Speaker 1: in a in a changing world. Anyway, I just thought 168 00:07:58,240 --> 00:08:01,880 Speaker 1: of that, but Eric buying a used fleet vehicle from 169 00:08:01,920 --> 00:08:04,120 Speaker 1: a rental company is something that I think many folks 170 00:08:04,320 --> 00:08:08,240 Speaker 1: probably haven't considered before. But like Hurts Avis Enterprise, they 171 00:08:08,280 --> 00:08:10,680 Speaker 1: all have sites that allow you to score a great 172 00:08:10,760 --> 00:08:13,920 Speaker 1: use car, oftentimes for a lot less money. And of 173 00:08:13,920 --> 00:08:16,240 Speaker 1: course the reason that you're able to snag that deal 174 00:08:16,280 --> 00:08:18,520 Speaker 1: is because these cars have a lot more miles on 175 00:08:18,600 --> 00:08:21,800 Speaker 1: them oft times. But not only is this the plus 176 00:08:21,840 --> 00:08:23,760 Speaker 1: since you're able to save money, but it kind of 177 00:08:23,760 --> 00:08:25,560 Speaker 1: also means that you're you're likely able to get a 178 00:08:25,560 --> 00:08:27,960 Speaker 1: newer car with with maybe some of those newer features 179 00:08:28,240 --> 00:08:30,680 Speaker 1: as well. Uh So, for instance, I just looked up 180 00:08:30,760 --> 00:08:34,600 Speaker 1: a Niecean versa uh and this is like a not 181 00:08:34,679 --> 00:08:36,880 Speaker 1: just their baseline, but it had a few letters after 182 00:08:37,160 --> 00:08:44,080 Speaker 1: versa right that signified that it had exceptions exactly, but 183 00:08:44,520 --> 00:08:47,120 Speaker 1: they're on the site. It was a lot cheaper, and 184 00:08:47,160 --> 00:08:48,680 Speaker 1: the reason it was a lot cheaper it is because 185 00:08:48,720 --> 00:08:50,840 Speaker 1: it had over seventy thousand miles on it. This car is, 186 00:08:51,040 --> 00:08:53,240 Speaker 1: you know, barely two years old and it had like 187 00:08:53,280 --> 00:08:55,520 Speaker 1: seventy one thousand miles on it, which is I'm just 188 00:08:55,520 --> 00:08:59,080 Speaker 1: gonna say that's impressive. The ability to put that many miles, granted, 189 00:08:59,160 --> 00:09:01,040 Speaker 1: is being driven every day, you know, to and from 190 00:09:01,080 --> 00:09:04,600 Speaker 1: different cities wherever that car was housed. People flying in 191 00:09:04,640 --> 00:09:07,080 Speaker 1: from all over driving that thing every day about But yeah, 192 00:09:07,120 --> 00:09:09,680 Speaker 1: the ability to get potentially a newer car but it 193 00:09:09,760 --> 00:09:11,920 Speaker 1: just has a little more wear on it, that might 194 00:09:11,920 --> 00:09:13,880 Speaker 1: be a plus for you. That's right. Well, so you're 195 00:09:13,880 --> 00:09:16,240 Speaker 1: talking about how rental car companies they're really only selling 196 00:09:16,280 --> 00:09:18,800 Speaker 1: newer vehicles, right, because they use them in their fleet 197 00:09:18,840 --> 00:09:21,440 Speaker 1: for a few years and then they sell them off 198 00:09:21,559 --> 00:09:24,319 Speaker 1: and they upgrade, right, and so how it goes, it's 199 00:09:24,320 --> 00:09:26,040 Speaker 1: It's one important thing to note is that you can't 200 00:09:26,080 --> 00:09:29,960 Speaker 1: really get an older car because rental car agencies they're 201 00:09:29,960 --> 00:09:31,760 Speaker 1: not selling those. You're not gonna find a ten year 202 00:09:31,800 --> 00:09:34,600 Speaker 1: old car right for sale on one of those websites 203 00:09:34,960 --> 00:09:36,920 Speaker 1: on hurts ABIs or Enterprise or any of the rental 204 00:09:36,920 --> 00:09:39,280 Speaker 1: car companies. You're you're just you're you're not going to 205 00:09:39,320 --> 00:09:41,480 Speaker 1: be able to get a substantial a discount because you're 206 00:09:41,520 --> 00:09:44,520 Speaker 1: looking at newer vehicles, even though these newer vehicles have 207 00:09:45,120 --> 00:09:47,800 Speaker 1: higher mileage, and we just have an affinity for older 208 00:09:47,800 --> 00:09:50,080 Speaker 1: cars because of how much cheaper they can be. And 209 00:09:50,120 --> 00:09:53,440 Speaker 1: so yeah, we would suggest you at least consider buying 210 00:09:53,480 --> 00:09:56,679 Speaker 1: an automobile, especially since this is for your son, that is, 211 00:09:56,760 --> 00:09:58,880 Speaker 1: that is a little bit older than just two years old, 212 00:09:59,240 --> 00:10:01,840 Speaker 1: because yeah, you're to get that discount because because the 213 00:10:01,880 --> 00:10:03,800 Speaker 1: car's got more miles on it. But you'll get even 214 00:10:03,880 --> 00:10:05,960 Speaker 1: more of a deal if you you opt to buy 215 00:10:06,000 --> 00:10:08,200 Speaker 1: a car that also like looks old. It's a few 216 00:10:08,240 --> 00:10:11,240 Speaker 1: a few body styles prior, right, something that is ten, 217 00:10:11,280 --> 00:10:13,240 Speaker 1: twelve years old. And so yeah, I mean, I don't know, 218 00:10:13,320 --> 00:10:15,440 Speaker 1: good luck convincing your son that maybe he should only 219 00:10:15,480 --> 00:10:18,800 Speaker 1: be considering, uh, buying a car that is, you know, 220 00:10:18,960 --> 00:10:21,559 Speaker 1: it is quite a bit older, but that's ultimately the 221 00:10:21,600 --> 00:10:23,800 Speaker 1: best way to save, right it. We just think it 222 00:10:23,840 --> 00:10:28,520 Speaker 1: makes sense for younger drivers to be driving more affordable vehicles. 223 00:10:28,880 --> 00:10:30,960 Speaker 1: They might not have all the updated safety features and 224 00:10:31,000 --> 00:10:33,040 Speaker 1: that might be important to you, So that's definitely something 225 00:10:33,080 --> 00:10:37,720 Speaker 1: worth considering. You might feel compelled to spend extra departure 226 00:10:37,720 --> 00:10:39,560 Speaker 1: assists yea, and stuff like that. I I get those 227 00:10:39,559 --> 00:10:42,600 Speaker 1: things do help younger drivers stay safer, but you also 228 00:10:42,679 --> 00:10:44,640 Speaker 1: might be able to find a car that's more like five, six, 229 00:10:44,679 --> 00:10:47,280 Speaker 1: seven years old that has some of those safety features 230 00:10:47,320 --> 00:10:50,000 Speaker 1: but also cost less money. That might be the happy 231 00:10:50,000 --> 00:10:53,079 Speaker 1: medium here. That's true. Something else eric rental cars. They 232 00:10:53,080 --> 00:10:55,240 Speaker 1: aren't treated as poorly as some of the folks out 233 00:10:55,240 --> 00:10:58,520 Speaker 1: there might tend to think. You know, like you think, okay, 234 00:10:58,559 --> 00:11:00,800 Speaker 1: I've heard the car that go to the fastest and 235 00:11:00,840 --> 00:11:04,720 Speaker 1: reverse rental cars because they're just treated so poorly. Every 236 00:11:04,760 --> 00:11:07,040 Speaker 1: travel movie you've seen has some sort of like rental 237 00:11:07,040 --> 00:11:09,920 Speaker 1: car scene and you're like, yeah, don't want to buy that. 238 00:11:10,040 --> 00:11:12,480 Speaker 1: They'll get treated like that. I mean like there is 239 00:11:12,480 --> 00:11:13,920 Speaker 1: a you know, a good chance that they were driven 240 00:11:13,960 --> 00:11:16,000 Speaker 1: pretty hard. But most rental car companies do a good 241 00:11:16,080 --> 00:11:18,840 Speaker 1: job with maintenance. Uh. Those those cars are typically on 242 00:11:19,000 --> 00:11:22,040 Speaker 1: these different maintenance schedules, and the companies employee people and 243 00:11:22,080 --> 00:11:24,240 Speaker 1: their sole job is just to stay on top of this. 244 00:11:24,840 --> 00:11:27,160 Speaker 1: Like those cars might even have their royal change more 245 00:11:27,160 --> 00:11:29,800 Speaker 1: frequently than than your car at home, depending on how 246 00:11:29,920 --> 00:11:33,160 Speaker 1: much you've delayed taking it into the shop. But still 247 00:11:33,280 --> 00:11:35,599 Speaker 1: we would say that getting an inspection is going to 248 00:11:35,679 --> 00:11:39,080 Speaker 1: be mandatory no matter what Most rental car companies will 249 00:11:39,120 --> 00:11:40,960 Speaker 1: allow you to take their car for a couple of 250 00:11:40,960 --> 00:11:43,800 Speaker 1: hours without charging you. Uh. If they do charge you'll 251 00:11:43,800 --> 00:11:45,800 Speaker 1: they'll they'll let you kind of like rent the car 252 00:11:45,840 --> 00:11:48,200 Speaker 1: for a day at a much cheaper price. Some companies 253 00:11:48,240 --> 00:11:50,840 Speaker 1: have these programs where if you end up buying the vehicle, uh, 254 00:11:50,880 --> 00:11:53,120 Speaker 1: any money that you put towards our rental, they will 255 00:11:53,120 --> 00:11:55,480 Speaker 1: credit you and that will go towards the cost of 256 00:11:55,520 --> 00:11:58,160 Speaker 1: the car. But take advantage of these different programs these 257 00:11:58,160 --> 00:12:01,679 Speaker 1: companies have, get an inspect and done. There's just a 258 00:12:01,720 --> 00:12:03,720 Speaker 1: lot of money at stake here when you're buying a car, 259 00:12:03,760 --> 00:12:06,199 Speaker 1: and you don't want to be buying a future headache 260 00:12:06,200 --> 00:12:08,680 Speaker 1: machine that's gonna cost you lots of money. Right, Yeah, 261 00:12:08,720 --> 00:12:11,480 Speaker 1: that's what we recommend that always to get your car, 262 00:12:11,679 --> 00:12:14,760 Speaker 1: that's universal advice, whether you're getting it from CarMax, carbona 263 00:12:14,880 --> 00:12:18,640 Speaker 1: from private private sale, from a rental car company, get 264 00:12:18,679 --> 00:12:20,720 Speaker 1: that thing checked out by a mechanic that you trust, 265 00:12:20,960 --> 00:12:23,560 Speaker 1: because they're gonna be able to alert you to potential 266 00:12:23,559 --> 00:12:26,320 Speaker 1: issues with the vehicle, making it either something that you 267 00:12:26,320 --> 00:12:28,760 Speaker 1: don't want to purchase, or helping you negotiate the price down, 268 00:12:29,040 --> 00:12:31,240 Speaker 1: or just learning you to future future issues that might 269 00:12:31,280 --> 00:12:33,880 Speaker 1: pop up at some point in time. It's also important 270 00:12:33,880 --> 00:12:38,080 Speaker 1: to mention Matt that, uh that. Another plus to consider 271 00:12:38,160 --> 00:12:40,320 Speaker 1: when you're buying from a rental car company is that 272 00:12:40,360 --> 00:12:42,600 Speaker 1: they will often come the car will come with some 273 00:12:42,640 --> 00:12:45,880 Speaker 1: sort of warranty or at least an extended return policy 274 00:12:46,280 --> 00:12:49,400 Speaker 1: like Hurts has a decent policy. Enterprise has I think 275 00:12:49,440 --> 00:12:52,960 Speaker 1: like a seven day thousand mile return policy, which gives 276 00:12:52,960 --> 00:12:54,440 Speaker 1: you some time to pull it over. You might be like, 277 00:12:54,720 --> 00:12:56,920 Speaker 1: wait a second, the mufflers falling off off the back, 278 00:12:56,960 --> 00:12:59,480 Speaker 1: I'm taking this, I'm taking this junk back. But yeah, 279 00:12:59,480 --> 00:13:02,840 Speaker 1: that's it's still nothing close to the thirty day, fifteen 280 00:13:02,960 --> 00:13:06,280 Speaker 1: hundred mile return policy. The car Max they've got the 281 00:13:06,320 --> 00:13:08,720 Speaker 1: best in the business, is awesome. Yeah, so we would 282 00:13:08,720 --> 00:13:10,640 Speaker 1: say be sure to read the fine print to know 283 00:13:10,840 --> 00:13:13,960 Speaker 1: what type of warranty might be remaining. For example, on 284 00:13:14,120 --> 00:13:16,960 Speaker 1: Avis's website, they say that most of their vehicles still 285 00:13:17,040 --> 00:13:20,679 Speaker 1: have some manufacturer's warranty left. But how much longer is 286 00:13:20,720 --> 00:13:22,920 Speaker 1: that warrantines the last for three three thousand miles longer. 287 00:13:23,120 --> 00:13:24,800 Speaker 1: Those are the kind of questions you're gonna want to 288 00:13:24,840 --> 00:13:27,320 Speaker 1: ask before we sign on the dotted line and while 289 00:13:27,320 --> 00:13:30,000 Speaker 1: we're on the topic of warranties, we would suggest that 290 00:13:30,040 --> 00:13:33,080 Speaker 1: you do not spend money on an extended warranty. They're 291 00:13:33,160 --> 00:13:35,080 Speaker 1: rarely worth it, and you could easily gain that piece 292 00:13:35,120 --> 00:13:38,000 Speaker 1: of mind from having a good inspection done on the 293 00:13:38,080 --> 00:13:41,720 Speaker 1: vehicle before you're stuck with costly repairs that that might 294 00:13:41,760 --> 00:13:44,040 Speaker 1: pop up. And just just having more money on hand 295 00:13:44,080 --> 00:13:46,160 Speaker 1: in savings to self ensure is going to be better 296 00:13:46,200 --> 00:13:48,520 Speaker 1: than spending thousands of bucks on some sort of extended 297 00:13:48,520 --> 00:13:51,360 Speaker 1: warranty most definitely. Uh And and also just make sure 298 00:13:51,360 --> 00:13:54,120 Speaker 1: that you're shopping around eric, because you know, not just 299 00:13:54,160 --> 00:13:56,679 Speaker 1: on the different rental car websites, but to shop around, 300 00:13:56,720 --> 00:13:59,240 Speaker 1: you know, like on the open market. Beyond that, because 301 00:13:59,280 --> 00:14:01,440 Speaker 1: you might assume that buying a car from a rental 302 00:14:01,440 --> 00:14:03,640 Speaker 1: company is going to give you, you you know, the best 303 00:14:03,640 --> 00:14:06,720 Speaker 1: ability to save. That actually might be true in a 304 00:14:06,720 --> 00:14:08,640 Speaker 1: lot of cases, but you still want to do some 305 00:14:08,840 --> 00:14:11,240 Speaker 1: looking around before you pounce. You want to perform your 306 00:14:11,280 --> 00:14:14,440 Speaker 1: due diligence, So shop carbon at CarMax. Like you mentioned, 307 00:14:14,640 --> 00:14:17,400 Speaker 1: Auto Trader had to all of these different sites to 308 00:14:17,400 --> 00:14:19,080 Speaker 1: get a feel for for what they have on hand. 309 00:14:19,400 --> 00:14:22,280 Speaker 1: But then also make sure to scour Facebook marketplace. Make 310 00:14:22,320 --> 00:14:25,120 Speaker 1: sure to hop on Craigslist as well. Basically, the harder 311 00:14:25,200 --> 00:14:27,240 Speaker 1: it is for you to find a vehicle, I think, 312 00:14:27,240 --> 00:14:29,880 Speaker 1: the higher the likelihood of you finding a deal. You 313 00:14:29,880 --> 00:14:31,480 Speaker 1: can even take it super old school. You can keep 314 00:14:31,480 --> 00:14:34,480 Speaker 1: an eye out for UH for Sales Science on cars 315 00:14:34,480 --> 00:14:37,560 Speaker 1: where you live, because you could potentially get an amazing deal. 316 00:14:37,840 --> 00:14:40,040 Speaker 1: If you've got somebody who doesn't want to list online, 317 00:14:40,120 --> 00:14:43,520 Speaker 1: you know they're only limiting their audience to whoever happens 318 00:14:43,560 --> 00:14:46,200 Speaker 1: to see the sign. But bottom line, we just don't 319 00:14:46,200 --> 00:14:48,000 Speaker 1: want you to assume that rental car companies are the 320 00:14:48,080 --> 00:14:51,080 Speaker 1: best way to go because they might not have the 321 00:14:51,120 --> 00:14:53,240 Speaker 1: best price for the car the kind of car that 322 00:14:53,280 --> 00:14:55,280 Speaker 1: you're looking for. They might, they might not. It just 323 00:14:55,320 --> 00:14:58,160 Speaker 1: depends and it requires small shopping in bottom line too, 324 00:14:58,160 --> 00:15:01,280 Speaker 1: I'll say that personally, I am very four buying from 325 00:15:01,640 --> 00:15:04,840 Speaker 1: a rental car company because our van. How both of 326 00:15:04,880 --> 00:15:07,120 Speaker 1: our vangel were named after a listener who wrote in 327 00:15:07,160 --> 00:15:10,640 Speaker 1: with the best suggestion, I've got how you've got Homer? 328 00:15:11,200 --> 00:15:14,760 Speaker 1: And how was our rental fleet van? I think he 329 00:15:14,840 --> 00:15:16,960 Speaker 1: was down in Orlando, and I bet he was in 330 00:15:17,480 --> 00:15:20,400 Speaker 1: UH running to and from Disney World. Say he created 331 00:15:20,560 --> 00:15:23,680 Speaker 1: so much joy for so many memories, and he's provided 332 00:15:23,760 --> 00:15:26,720 Speaker 1: us a lot of joy. He had a pretty high 333 00:15:26,800 --> 00:15:29,960 Speaker 1: mileage on him when we purchased that van, but we 334 00:15:30,000 --> 00:15:32,560 Speaker 1: have had that thing now for like five years. It's 335 00:15:32,600 --> 00:15:34,800 Speaker 1: been great for us. And I will say I recently 336 00:15:34,880 --> 00:15:37,200 Speaker 1: took it in order to get its oil changed, and 337 00:15:37,320 --> 00:15:40,400 Speaker 1: while I was there, the folks said, hey, have you 338 00:15:40,480 --> 00:15:42,280 Speaker 1: have you been the owner for the past hour five 339 00:15:42,320 --> 00:15:44,960 Speaker 1: years or so, because there's no records of the work 340 00:15:45,000 --> 00:15:48,760 Speaker 1: that's been performed. But beyond that a k A. While 341 00:15:48,840 --> 00:15:51,400 Speaker 1: it was in possession of the car rental company, all 342 00:15:51,440 --> 00:15:54,480 Speaker 1: of the maintenance had been registered or had been logged 343 00:15:54,520 --> 00:15:57,440 Speaker 1: online within the report. So I just found that interesting 344 00:15:57,640 --> 00:15:59,760 Speaker 1: that even though the shop I was going to there's 345 00:16:00,040 --> 00:16:03,280 Speaker 1: super top notch, they weren't registering all of the work 346 00:16:03,320 --> 00:16:04,960 Speaker 1: that they're doing to the thing. And so it's it's 347 00:16:04,960 --> 00:16:07,200 Speaker 1: interesting to look back and see the fact that, oh, 348 00:16:07,240 --> 00:16:10,280 Speaker 1: you can literally see each and every oil change that 349 00:16:10,320 --> 00:16:13,520 Speaker 1: was being taken care of. And sure, yeah, there's like 350 00:16:13,520 --> 00:16:17,080 Speaker 1: a difference between like emotionally caring for a vehicle, but 351 00:16:17,120 --> 00:16:19,320 Speaker 1: then the physical things that need to happen to a vehicle, right, 352 00:16:19,360 --> 00:16:21,480 Speaker 1: and so obviously when it's a part of our rettal fleet. 353 00:16:21,640 --> 00:16:24,200 Speaker 1: Nobody emotionally cares about the car. It's just one of 354 00:16:24,280 --> 00:16:28,880 Speaker 1: hundreds of vehicles, not usually naming them exactly, but you 355 00:16:28,880 --> 00:16:31,120 Speaker 1: know what, the things that truly matter when that car 356 00:16:31,160 --> 00:16:33,600 Speaker 1: is going to enter your possession. A lot of times 357 00:16:33,680 --> 00:16:35,640 Speaker 1: those things are being taken care of, yeah, for sure. 358 00:16:35,760 --> 00:16:38,400 Speaker 1: So and I just to mention the less car we got, 359 00:16:38,400 --> 00:16:41,960 Speaker 1: which is Homer, was five thousand dollar Old School two 360 00:16:42,160 --> 00:16:45,560 Speaker 1: six Odyssey, and there was a mechanic that we trusted 361 00:16:45,800 --> 00:16:50,400 Speaker 1: that in the area who doesn't normally sell cars, but 362 00:16:50,440 --> 00:16:51,880 Speaker 1: we had just reached out to him to ask if 363 00:16:51,880 --> 00:16:54,120 Speaker 1: he knew where we could find, uh the kind of 364 00:16:54,120 --> 00:16:56,360 Speaker 1: car we were looking for, and he said, it's so 365 00:16:56,360 --> 00:16:59,400 Speaker 1: funny you ask, because there's this family that's been coming 366 00:16:59,440 --> 00:17:02,000 Speaker 1: here for years, years and they just moved to California 367 00:17:02,200 --> 00:17:04,560 Speaker 1: without much notice and they left their car here. And 368 00:17:04,600 --> 00:17:06,440 Speaker 1: so he's like, I've been working on it for years, 369 00:17:06,440 --> 00:17:08,840 Speaker 1: I have all the records, and you can work out 370 00:17:08,880 --> 00:17:11,439 Speaker 1: the sale sale arrangement with them, and and we did, 371 00:17:11,480 --> 00:17:13,159 Speaker 1: and it's been it's been a killer car for us 372 00:17:13,160 --> 00:17:14,879 Speaker 1: for sure. And just one last thing we need to 373 00:17:14,880 --> 00:17:17,800 Speaker 1: mention for Eric when it comes to financing, we prefer 374 00:17:17,840 --> 00:17:20,000 Speaker 1: you not finance a car. Glad you're looking used and 375 00:17:20,040 --> 00:17:22,840 Speaker 1: not new, but we prefer you not use pay Yeah, 376 00:17:22,920 --> 00:17:25,520 Speaker 1: not not finances. So if you do, you're gonna want 377 00:17:25,520 --> 00:17:27,399 Speaker 1: to go to a local credit union to get that 378 00:17:27,400 --> 00:17:29,600 Speaker 1: financing because you're typically going to get the best terms, 379 00:17:30,119 --> 00:17:32,160 Speaker 1: the best interest rate. But it's one of those things 380 00:17:32,160 --> 00:17:34,520 Speaker 1: where save with the money pay cash. We don't love 381 00:17:34,520 --> 00:17:37,480 Speaker 1: the idea of financing a depreciating asset, but best of 382 00:17:37,520 --> 00:17:39,800 Speaker 1: luck finding the right car Eric for your son, and 383 00:17:39,800 --> 00:17:41,880 Speaker 1: we hope you stay safe out there on the roads. Matt. 384 00:17:41,920 --> 00:17:44,200 Speaker 1: Let's get to a couple more questions, including one about 385 00:17:44,240 --> 00:17:47,320 Speaker 1: how to transition into self employment. We'll get to that 386 00:17:47,359 --> 00:17:59,480 Speaker 1: one right after this. We are back from the brick 387 00:17:59,600 --> 00:18:01,000 Speaker 1: and in a second here we're going to take a 388 00:18:01,040 --> 00:18:03,159 Speaker 1: question from a listener and she is asking about what 389 00:18:03,240 --> 00:18:05,120 Speaker 1: to do with her four when k But first let's 390 00:18:05,119 --> 00:18:07,800 Speaker 1: go ahead and get to that entrepreneurship starting my own 391 00:18:07,880 --> 00:18:12,560 Speaker 1: business question. Hey guys, this is Andrew and Charleston, South Carolina. 392 00:18:12,680 --> 00:18:14,120 Speaker 1: I'm still waiting for you all to come to town 393 00:18:14,119 --> 00:18:16,199 Speaker 1: so I can take you to Emmon's post. But in 394 00:18:16,240 --> 00:18:19,239 Speaker 1: the meantime I could use some advice my wife and 395 00:18:19,240 --> 00:18:21,639 Speaker 1: I have full time jobs, have been doing some casual 396 00:18:21,680 --> 00:18:25,600 Speaker 1: side hustling, but we want to get serious about entrepreneurship 397 00:18:25,640 --> 00:18:30,760 Speaker 1: and transition to self employment with things like rental properties, freelance, writing, photography. 398 00:18:31,680 --> 00:18:34,359 Speaker 1: But other than forming an LLC and opening a business 399 00:18:34,440 --> 00:18:36,399 Speaker 1: checking account, we don't really know what we need to 400 00:18:36,400 --> 00:18:38,280 Speaker 1: do to set up a business and then run it. 401 00:18:39,080 --> 00:18:41,840 Speaker 1: Y'all have made that move recently. What should we do? 402 00:18:42,560 --> 00:18:45,359 Speaker 1: What shouldn't we do? Thanks so much for your thoughts 403 00:18:45,400 --> 00:18:47,440 Speaker 1: and all the great work that you do on every episode. 404 00:18:47,840 --> 00:18:50,600 Speaker 1: All right, Andrew Uh, thanks for the question, and I 405 00:18:50,640 --> 00:18:53,200 Speaker 1: love the goal that you have here because we would 406 00:18:53,200 --> 00:18:55,760 Speaker 1: say starting a business is is a great thing. More 407 00:18:55,760 --> 00:18:58,600 Speaker 1: folks only considering it, and we've talked about the numbers recently, 408 00:18:58,640 --> 00:19:01,400 Speaker 1: Matt that more and more people I've been starting businesses. 409 00:19:01,560 --> 00:19:03,600 Speaker 1: It took some of that downtime over the past two years, 410 00:19:03,680 --> 00:19:06,600 Speaker 1: and we're like, now's the time. And for those folks 411 00:19:06,600 --> 00:19:09,239 Speaker 1: who did that rather than sit there and binge and 412 00:19:09,280 --> 00:19:12,600 Speaker 1: watch their way completely through the Marvel Cinematic Universe movies 413 00:19:12,680 --> 00:19:15,960 Speaker 1: like I did, props to you. Yeah, you were you 414 00:19:16,000 --> 00:19:19,080 Speaker 1: were slacking. Other people were starting a future successful. Well 415 00:19:19,080 --> 00:19:20,600 Speaker 1: you and I were starting this business, but I was 416 00:19:20,640 --> 00:19:22,919 Speaker 1: shutting down my other business, and so maybe I had 417 00:19:22,920 --> 00:19:26,080 Speaker 1: some free free time moment. Well, yeah, we think it's 418 00:19:26,080 --> 00:19:28,280 Speaker 1: a great thing. And and the Great Resignation often got 419 00:19:28,320 --> 00:19:31,040 Speaker 1: billed as people quitting and laying on the couch, but 420 00:19:31,160 --> 00:19:33,320 Speaker 1: in reality there were there was some of that happening, 421 00:19:33,320 --> 00:19:36,040 Speaker 1: but there was a lot more. I think people wanting 422 00:19:36,080 --> 00:19:37,800 Speaker 1: to just change their lives and make money in a 423 00:19:37,800 --> 00:19:40,359 Speaker 1: different way of work from themselves, not be beholden to 424 00:19:40,600 --> 00:19:42,480 Speaker 1: someone else for a paycheck. And and we think that's 425 00:19:42,480 --> 00:19:44,879 Speaker 1: a great thing. And and Andrew wants to create multiple 426 00:19:44,920 --> 00:19:47,879 Speaker 1: streams have income. That's something we can get behind, and 427 00:19:48,040 --> 00:19:50,800 Speaker 1: especially Andrew, if you're able to pursue some activities that 428 00:19:50,840 --> 00:19:53,400 Speaker 1: you might enjoy more than what you're currently doing, Like 429 00:19:53,480 --> 00:19:55,640 Speaker 1: this is the reason to start to start a business 430 00:19:55,920 --> 00:19:58,560 Speaker 1: is if you feel like you can provide value and 431 00:19:58,640 --> 00:20:01,719 Speaker 1: find joy at the same time. Um, with the solid income, 432 00:20:02,040 --> 00:20:05,840 Speaker 1: that's that's the dream. Yes, and in Andrew's case, we 433 00:20:05,960 --> 00:20:07,680 Speaker 1: he's been with us for a minute now. He reached 434 00:20:07,680 --> 00:20:09,600 Speaker 1: out to us like years ago, and he might be 435 00:20:09,960 --> 00:20:12,000 Speaker 1: sort of on I'm not going to assume this, but 436 00:20:12,040 --> 00:20:13,840 Speaker 1: he might be kind of on the coast fire path 437 00:20:13,880 --> 00:20:17,160 Speaker 1: where he's able to start switching off like shutting down 438 00:20:17,280 --> 00:20:19,840 Speaker 1: one business or one line of profession and start to 439 00:20:19,880 --> 00:20:22,719 Speaker 1: pursue something like you said, you that he does enjoy 440 00:20:22,800 --> 00:20:25,760 Speaker 1: and something that he does find more fulfillment. And Andrew, 441 00:20:25,800 --> 00:20:28,479 Speaker 1: if that's the case, again, more props to you, More 442 00:20:28,480 --> 00:20:30,680 Speaker 1: props to everybody out there starting their own business. But 443 00:20:30,800 --> 00:20:32,520 Speaker 1: you know, this is it's kind of a broad question 444 00:20:32,520 --> 00:20:34,440 Speaker 1: what you asked here, So we're gonna start with some 445 00:20:34,600 --> 00:20:38,520 Speaker 1: really broad advice. And regardless of which one of these 446 00:20:38,520 --> 00:20:40,920 Speaker 1: businesses you want to get into, you know, we're gonna 447 00:20:40,920 --> 00:20:43,439 Speaker 1: say that it's crucial to get your personal finances in 448 00:20:43,440 --> 00:20:46,320 Speaker 1: tip top shape before you take the plunge. Uh. And 449 00:20:46,359 --> 00:20:49,639 Speaker 1: that's not necessarily because we feel that entrepreneurship and owning 450 00:20:49,640 --> 00:20:52,160 Speaker 1: your own business that it's not as lucrative. But in fact, 451 00:20:52,240 --> 00:20:54,760 Speaker 1: we actually think that the opposite is kind of true. 452 00:20:54,760 --> 00:20:57,880 Speaker 1: We feel that there is more long term potential upside 453 00:20:58,119 --> 00:21:01,040 Speaker 1: if you, you know, take some smart asks now, but 454 00:21:01,080 --> 00:21:03,680 Speaker 1: you'll definitely want to account for some of the short 455 00:21:03,800 --> 00:21:07,080 Speaker 1: term volatility that you might experience with your income as 456 00:21:07,080 --> 00:21:09,879 Speaker 1: you transition or at the very least, you know, depending 457 00:21:09,920 --> 00:21:12,680 Speaker 1: on which route you take, you might find yourself with 458 00:21:12,720 --> 00:21:17,520 Speaker 1: some additional expenses without the revenue to justify those additional expenses, 459 00:21:17,640 --> 00:21:19,720 Speaker 1: at least not yet. Uh. And so that means that 460 00:21:19,800 --> 00:21:22,520 Speaker 1: you'll want to be in money gear number four or 461 00:21:22,760 --> 00:21:26,000 Speaker 1: even further along, depending on how comfortable you are with risks. 462 00:21:26,040 --> 00:21:28,200 Speaker 1: And so what that means is having at least three 463 00:21:28,320 --> 00:21:31,120 Speaker 1: or six months of living expenses set aside to kind 464 00:21:31,119 --> 00:21:33,359 Speaker 1: of hold you over to kind of bridge that gap. Yeah, 465 00:21:33,359 --> 00:21:36,040 Speaker 1: and if you haven't heard about our money gears, I 466 00:21:36,080 --> 00:21:37,639 Speaker 1: know Andrew has, he's been around a long time. But 467 00:21:37,640 --> 00:21:39,200 Speaker 1: if you've been listening and you're like, wait, a second match, 468 00:21:39,200 --> 00:21:41,240 Speaker 1: just head money gears, what's that? What are money? We 469 00:21:41,280 --> 00:21:43,400 Speaker 1: have like an order of operations. So we've listed out 470 00:21:43,760 --> 00:21:46,040 Speaker 1: uh steps for you to take to progress in your 471 00:21:46,040 --> 00:21:48,119 Speaker 1: personal financial life. And so you can go to how 472 00:21:48,119 --> 00:21:50,160 Speaker 1: to money dot com slash start and you can see 473 00:21:50,200 --> 00:21:52,359 Speaker 1: all seven of those money gears in order you can 474 00:21:52,440 --> 00:21:53,760 Speaker 1: kind of figure out where you are and what the 475 00:21:53,800 --> 00:21:56,600 Speaker 1: next step is for you. And so what Matt saying is, yeah, 476 00:21:56,600 --> 00:21:58,920 Speaker 1: you've gotta be kind of halfway along that path before 477 00:21:58,960 --> 00:22:01,040 Speaker 1: you throw caution the wind and quit your job and 478 00:22:01,040 --> 00:22:03,560 Speaker 1: start your own thing. But Yeah, let's talk about expenses 479 00:22:03,560 --> 00:22:06,000 Speaker 1: for a second, because simultaneously, we'd love to see you 480 00:22:06,000 --> 00:22:08,760 Speaker 1: spend as little money as possible. Of course, Andrew, there 481 00:22:08,840 --> 00:22:11,119 Speaker 1: might be some expenses, but we would rather you not 482 00:22:11,320 --> 00:22:13,000 Speaker 1: incur a bunch of expenses. And this is one of 483 00:22:13,000 --> 00:22:15,440 Speaker 1: those things that people starting a business overthink. I think 484 00:22:15,440 --> 00:22:18,960 Speaker 1: they over buy. They end up geeking out, maybe too 485 00:22:19,040 --> 00:22:22,200 Speaker 1: much on equipment, getting all the gear. Yeah, getting the gear, 486 00:22:22,280 --> 00:22:24,639 Speaker 1: and they're like, great, now now I can start my 487 00:22:24,680 --> 00:22:27,440 Speaker 1: business because I have all the things I need, all 488 00:22:27,440 --> 00:22:31,000 Speaker 1: the equipment. But oftentimes that doesn't produce the best results, right, 489 00:22:31,240 --> 00:22:33,439 Speaker 1: and sometimes it's a it's a waste of money for 490 00:22:33,440 --> 00:22:35,960 Speaker 1: a business that never really takes off. So what we 491 00:22:36,000 --> 00:22:39,040 Speaker 1: would say is, yeah, you might have to invest a 492 00:22:39,040 --> 00:22:40,760 Speaker 1: little bit of capital. You might have to buy some 493 00:22:40,800 --> 00:22:42,400 Speaker 1: things to get off the ground. Right. If you don't 494 00:22:42,400 --> 00:22:44,840 Speaker 1: have a camera and you want to be a photographer, 495 00:22:45,119 --> 00:22:47,240 Speaker 1: you need a camera. But if you have a solid 496 00:22:47,280 --> 00:22:50,479 Speaker 1: camera but you kind of want the ten dollar digital SLR, 497 00:22:50,560 --> 00:22:53,040 Speaker 1: that is like, I don't even know what I'm talking about, Mac, 498 00:22:53,080 --> 00:22:55,719 Speaker 1: you're the photography here. I'm just DSLRs are out man, 499 00:22:56,200 --> 00:22:59,080 Speaker 1: It's all, uh, what is it? Now? They're all meuralists 500 00:22:59,119 --> 00:23:03,080 Speaker 1: now d S Lazer they're the rage fifteen years ago. 501 00:23:03,080 --> 00:23:04,600 Speaker 1: So yeah, if you want one of those mirrorlest ones 502 00:23:04,640 --> 00:23:06,760 Speaker 1: and you're like, I've already got a good DSLR, maybe 503 00:23:06,840 --> 00:23:09,160 Speaker 1: you don't quite need that up there. And so yeah, 504 00:23:09,160 --> 00:23:11,760 Speaker 1: we actually recommend Andrew you going back and listening to 505 00:23:12,119 --> 00:23:15,040 Speaker 1: an older episode we did with Alan Donnegan, and that 506 00:23:15,080 --> 00:23:18,159 Speaker 1: was episode forty seven. He's all about getting massively creative 507 00:23:18,200 --> 00:23:21,000 Speaker 1: in order to spend nothing as your first getting started, 508 00:23:21,040 --> 00:23:22,359 Speaker 1: and I thought he just had like a lot of 509 00:23:22,359 --> 00:23:25,120 Speaker 1: food for thought for anybody who wants to start a business. 510 00:23:25,359 --> 00:23:26,959 Speaker 1: So yeah, I love that episode we do with him. 511 00:23:26,960 --> 00:23:29,200 Speaker 1: There's a lot of practical advice there for people who 512 00:23:29,200 --> 00:23:30,680 Speaker 1: do want to start their own business but don't want 513 00:23:30,680 --> 00:23:32,440 Speaker 1: to like sholl out a ton of money in order 514 00:23:32,480 --> 00:23:34,080 Speaker 1: to kind of get things going. Yeah, and it's not 515 00:23:34,119 --> 00:23:36,240 Speaker 1: necessarily that he's going to say something and you're like, oh, 516 00:23:36,320 --> 00:23:38,520 Speaker 1: we needed to do what we're gonna We're gonna start 517 00:23:38,520 --> 00:23:40,919 Speaker 1: our business exactly like that. But just the way he 518 00:23:41,000 --> 00:23:43,920 Speaker 1: thinks that exactly is that's the sort of big takeaway 519 00:23:44,000 --> 00:23:46,800 Speaker 1: that we want you to sort of glean from that episode. Yeah, 520 00:23:46,840 --> 00:23:49,560 Speaker 1: and one of the potential paths of entrepreneurships that Andrew 521 00:23:49,600 --> 00:23:52,360 Speaker 1: mentioned was investing in real estate. And what's great about 522 00:23:52,480 --> 00:23:54,840 Speaker 1: real estate is that it could take very little time 523 00:23:54,920 --> 00:23:56,399 Speaker 1: out of your day, Like you can do that on 524 00:23:56,440 --> 00:23:59,000 Speaker 1: the side while you have other passions of the pursuits. 525 00:23:59,119 --> 00:24:01,320 Speaker 1: But it's also one of the more capital paths. There 526 00:24:01,320 --> 00:24:04,919 Speaker 1: are expenses associated with buying real estate. Yeah, so that 527 00:24:05,040 --> 00:24:07,959 Speaker 1: is very different than starting let's say a photography business. 528 00:24:08,160 --> 00:24:10,480 Speaker 1: But hopefully you've done a good job saving up Andrew 529 00:24:10,520 --> 00:24:14,360 Speaker 1: for that town payment. That's clearly a differentiator though, between 530 00:24:14,520 --> 00:24:16,639 Speaker 1: real estate and then starting another business. I I think 531 00:24:16,680 --> 00:24:19,800 Speaker 1: about them very differently, even though they have some similarities 532 00:24:19,840 --> 00:24:22,000 Speaker 1: from the aspect that like, you're kind of like a 533 00:24:22,000 --> 00:24:24,320 Speaker 1: business owner when you invest in real estate, but the 534 00:24:24,359 --> 00:24:26,680 Speaker 1: practicalities are are part a bit different. Yeah, and the 535 00:24:26,720 --> 00:24:28,720 Speaker 1: other thing too, like there is just so much that 536 00:24:28,760 --> 00:24:30,399 Speaker 1: you can do to ramp up a new business that 537 00:24:30,480 --> 00:24:33,800 Speaker 1: doesn't cost like, hardly any money at all. Andrew, First 538 00:24:33,800 --> 00:24:36,720 Speaker 1: of all, you probably already have some experience in the 539 00:24:36,760 --> 00:24:39,440 Speaker 1: different fields that you mentioned, but start filling in the 540 00:24:39,640 --> 00:24:41,560 Speaker 1: different knowledge gaps that you might have by reading a 541 00:24:41,600 --> 00:24:44,000 Speaker 1: few books on the topic or listen to some different 542 00:24:44,000 --> 00:24:46,760 Speaker 1: podcasts where they all they do they do deep dives 543 00:24:47,040 --> 00:24:49,280 Speaker 1: on some of the different things you're interested in, like writing, 544 00:24:49,720 --> 00:24:51,359 Speaker 1: or all they do is they just talk about the 545 00:24:51,359 --> 00:24:53,480 Speaker 1: photography industry, or all they talk about is real estate 546 00:24:53,880 --> 00:24:56,040 Speaker 1: h and all of that shouldn't cost a time. You 547 00:24:56,080 --> 00:24:58,000 Speaker 1: can listen to podcasts are free. You can check books 548 00:24:58,000 --> 00:25:01,200 Speaker 1: out at the library. UM And aditionally, like so much 549 00:25:01,400 --> 00:25:04,359 Speaker 1: of like early on, success I feel has more to 550 00:25:04,359 --> 00:25:06,480 Speaker 1: do with who you know and the connections that you're 551 00:25:06,480 --> 00:25:09,880 Speaker 1: able to make within a specific industry. And so, man, 552 00:25:09,920 --> 00:25:11,400 Speaker 1: if if I were in your shoes, Anger, I would 553 00:25:11,400 --> 00:25:14,600 Speaker 1: dedicate a good amount of time to networking. UM and 554 00:25:14,920 --> 00:25:17,760 Speaker 1: like attend the different industry meetups. You know where you 555 00:25:17,800 --> 00:25:20,000 Speaker 1: are showing up, you're talking with the folks that you're 556 00:25:20,040 --> 00:25:23,240 Speaker 1: hoping to emulate. Reach out and and ask them to coffee, 557 00:25:23,280 --> 00:25:25,040 Speaker 1: asked them to go off for a beer, because you're 558 00:25:25,040 --> 00:25:27,639 Speaker 1: gonna be able to learn so much from the experience 559 00:25:27,640 --> 00:25:29,919 Speaker 1: of those folks who are already in the industry than 560 00:25:30,280 --> 00:25:33,159 Speaker 1: sitting there. And book knowledge is important, right, Like he 561 00:25:33,200 --> 00:25:36,159 Speaker 1: definitely want to read books, but man, the experiential knowledge 562 00:25:36,160 --> 00:25:38,879 Speaker 1: that you gain from somebody who who has been in it, 563 00:25:39,240 --> 00:25:41,119 Speaker 1: that is going to be tough to be especially to 564 00:25:41,280 --> 00:25:45,120 Speaker 1: given that they're likely going to be geographically where you are, 565 00:25:45,160 --> 00:25:49,280 Speaker 1: and so there might be certain particulars about photography in 566 00:25:49,359 --> 00:25:51,359 Speaker 1: South Carolina. I don't know, but that is something that 567 00:25:51,440 --> 00:25:53,480 Speaker 1: you would be able to learn from from someone there 568 00:25:53,520 --> 00:25:55,720 Speaker 1: locally for sure. All right, let's getting already here to 569 00:25:55,840 --> 00:25:58,080 Speaker 1: per a second aunt. Let's talk technical stuff because of 570 00:25:58,080 --> 00:26:00,399 Speaker 1: course you have to think through some of the business 571 00:26:00,400 --> 00:26:03,600 Speaker 1: formation elements, right, that's your eyes, crush, your t s. Yes, 572 00:26:03,680 --> 00:26:06,400 Speaker 1: that kind of stuff exactly. And Andrew mentioned like forming 573 00:26:06,440 --> 00:26:09,720 Speaker 1: an LLC, which is great. That is a legal designation 574 00:26:09,840 --> 00:26:12,760 Speaker 1: where we are actually an LLC our business, but we're 575 00:26:12,800 --> 00:26:15,880 Speaker 1: taxed as an S corporation, which helps on the taxes front. 576 00:26:15,880 --> 00:26:19,160 Speaker 1: So you're gonna wanna maybe talk to a tax professional 577 00:26:19,240 --> 00:26:22,000 Speaker 1: to see what the best designation is for you. But 578 00:26:22,080 --> 00:26:25,200 Speaker 1: those are two different things. You want both the model though, yes, yes, 579 00:26:25,520 --> 00:26:27,760 Speaker 1: and so yeah, we'd recommend looking into that. But your 580 00:26:27,880 --> 00:26:31,040 Speaker 1: articles a formation are going to happen in South Carolina, 581 00:26:31,320 --> 00:26:33,880 Speaker 1: and then the Secretary of State will require an annual 582 00:26:33,920 --> 00:26:36,520 Speaker 1: fee to maintain those records. You can easily get the 583 00:26:36,520 --> 00:26:38,600 Speaker 1: ball rolling on all of this on a site like 584 00:26:38,680 --> 00:26:41,119 Speaker 1: No Low but then you'll also want to apply for 585 00:26:41,160 --> 00:26:43,320 Speaker 1: an E I N. With the I R S. It's 586 00:26:43,359 --> 00:26:45,960 Speaker 1: kind of like a Social Security number, but your business 587 00:26:46,440 --> 00:26:50,639 Speaker 1: employee Employer Identification number exactly. Yep, But you'll need that 588 00:26:50,720 --> 00:26:53,679 Speaker 1: number basically in order to open a business checking account. 589 00:26:53,960 --> 00:26:56,720 Speaker 1: And Andrew already mentioned the necessity of that, which is true, 590 00:26:57,119 --> 00:27:00,720 Speaker 1: helps keep your business and personal accounts separate. Also, insurance, 591 00:27:00,760 --> 00:27:03,040 Speaker 1: like it depends on what business you're starting, but you're 592 00:27:03,080 --> 00:27:05,479 Speaker 1: gonna want to make sure you're covered in that regard 593 00:27:06,000 --> 00:27:08,439 Speaker 1: like photgrah if you do start a photography company, having 594 00:27:08,600 --> 00:27:12,040 Speaker 1: that gear like technically it's called inland marine policy like 595 00:27:12,080 --> 00:27:13,800 Speaker 1: that is, you're gonna want to have that gear insured. 596 00:27:13,800 --> 00:27:15,840 Speaker 1: You don't want to have stolen out of your car 597 00:27:15,920 --> 00:27:17,879 Speaker 1: when you stop to get gas. That's right, I know 598 00:27:18,000 --> 00:27:20,480 Speaker 1: somebody that that literally happened to. And depending on yeah, 599 00:27:20,560 --> 00:27:23,920 Speaker 1: your real say investing and how you're forming that, you 600 00:27:24,000 --> 00:27:26,159 Speaker 1: might need an umbrella policy in addition to some of 601 00:27:26,200 --> 00:27:28,880 Speaker 1: your other insurance. But yeah, so think about that. But 602 00:27:28,880 --> 00:27:31,199 Speaker 1: but taxes are definitely something you're gonna want to account 603 00:27:31,200 --> 00:27:34,320 Speaker 1: for and think about as well, because you start making profit, 604 00:27:34,520 --> 00:27:36,320 Speaker 1: you know, be sure to start setting money aside so 605 00:27:36,359 --> 00:27:39,440 Speaker 1: you're not shocked come next April with a giant tax 606 00:27:39,480 --> 00:27:41,880 Speaker 1: bill and at some point you're gonna need to once 607 00:27:41,920 --> 00:27:43,800 Speaker 1: you pass a certain threshold, you're gonna need to start 608 00:27:43,840 --> 00:27:46,800 Speaker 1: making quarterly payments to the I R S. Yeah as well, 609 00:27:46,920 --> 00:27:49,680 Speaker 1: that's right. And of course if you are being taxed 610 00:27:49,760 --> 00:27:52,600 Speaker 1: as an escort, it's not that your business is paying 611 00:27:52,600 --> 00:27:54,639 Speaker 1: taxes because all of that money passes through and so 612 00:27:54,680 --> 00:27:57,320 Speaker 1: that's just additional money that you will have to pay 613 00:27:57,359 --> 00:28:00,320 Speaker 1: in personal taxes. But one final note, Andrew, we would 614 00:28:00,320 --> 00:28:02,880 Speaker 1: recommend for you to not necessarily start all of these 615 00:28:02,920 --> 00:28:05,520 Speaker 1: different business ideas all at once. You know, we were 616 00:28:05,560 --> 00:28:06,960 Speaker 1: I'm afraid that if you were to do that, you 617 00:28:07,040 --> 00:28:09,480 Speaker 1: might spit yourself a little too thin. And we're we're 618 00:28:09,480 --> 00:28:11,880 Speaker 1: all about taking smart risk, but you also don't want 619 00:28:11,920 --> 00:28:14,280 Speaker 1: to put yourself out there too far. You don't want 620 00:28:14,280 --> 00:28:16,240 Speaker 1: to get out, you know, too far over your skis. 621 00:28:16,680 --> 00:28:19,120 Speaker 1: Maybe just pick one to focus on and see how 622 00:28:19,160 --> 00:28:21,320 Speaker 1: it goes. So we wish you the best of luck 623 00:28:21,400 --> 00:28:26,200 Speaker 1: and businesses and absolutely well maybe transitioning away from potential, 624 00:28:26,480 --> 00:28:28,440 Speaker 1: the potential stability that used to have from a full 625 00:28:28,440 --> 00:28:30,240 Speaker 1: time pop not and not just like the income side 626 00:28:30,240 --> 00:28:32,600 Speaker 1: of things, but even just lifestyle. There are a lot 627 00:28:32,640 --> 00:28:34,879 Speaker 1: of changes that happen on a personal level when it 628 00:28:35,560 --> 00:28:37,399 Speaker 1: when you've been doing something first, say the past ten 629 00:28:37,480 --> 00:28:39,280 Speaker 1: twenty years, and all of a sudden, oh, you don't 630 00:28:39,320 --> 00:28:41,960 Speaker 1: have that structure. Oh you aren't leaving the home ever, 631 00:28:42,040 --> 00:28:44,480 Speaker 1: because you're kind of working out of the home office now. 632 00:28:44,680 --> 00:28:46,840 Speaker 1: There are a lot of changes that that can happen 633 00:28:46,880 --> 00:28:49,600 Speaker 1: all at once with just one business, let alone three. Yeah, 634 00:28:49,600 --> 00:28:52,240 Speaker 1: and you you quickly realize once you start a business 635 00:28:52,280 --> 00:28:53,640 Speaker 1: all of the things that go along with it, and 636 00:28:53,640 --> 00:28:55,680 Speaker 1: it's a lot more complex than maybe you think I 637 00:28:55,680 --> 00:28:58,200 Speaker 1: think it is on the surface, And so it's a 638 00:28:58,200 --> 00:29:00,800 Speaker 1: good idea to to not be agg down in the 639 00:29:00,840 --> 00:29:04,040 Speaker 1: complexities of three brand new businesses, work out the kinks 640 00:29:04,040 --> 00:29:06,840 Speaker 1: in one first while getting started, and then you know, 641 00:29:06,920 --> 00:29:09,720 Speaker 1: once that think that that thing is sailing a little smoothly, 642 00:29:09,960 --> 00:29:12,240 Speaker 1: you can move on and open up that second business. 643 00:29:12,280 --> 00:29:14,160 Speaker 1: That's I don't see a problem with that. All right, 644 00:29:14,320 --> 00:29:17,720 Speaker 1: let's get onto our next question. This one is about 645 00:29:18,040 --> 00:29:22,479 Speaker 1: converting a work sponsored retirement account to an individual retirement account. Hi, 646 00:29:22,600 --> 00:29:25,280 Speaker 1: Joelan Matt, I just want to thank you first and 647 00:29:25,320 --> 00:29:29,600 Speaker 1: foremost for everything I have learned so much through your show, UM, 648 00:29:29,640 --> 00:29:32,720 Speaker 1: and I just really appreciate you, know everything, So thank you, 649 00:29:32,800 --> 00:29:35,680 Speaker 1: thank you, thank you. My name is Chelsea. I live 650 00:29:35,720 --> 00:29:41,640 Speaker 1: in California and my question today is I have an 651 00:29:41,680 --> 00:29:44,560 Speaker 1: old four oh one K account with about forty eight 652 00:29:44,600 --> 00:29:48,760 Speaker 1: thousand that is just sitting in a Fidelity account. I 653 00:29:48,800 --> 00:29:52,360 Speaker 1: am considering rolling it over into a wrath I R A. UM, 654 00:29:52,360 --> 00:29:54,959 Speaker 1: but in looking, you know, I've lost ten thousand in 655 00:29:54,960 --> 00:29:57,720 Speaker 1: that account just based on what's going on in the market. 656 00:29:57,840 --> 00:30:00,240 Speaker 1: So wondering if now is a good time him to 657 00:30:00,320 --> 00:30:02,120 Speaker 1: roll it over into a rath r I R A 658 00:30:02,480 --> 00:30:05,840 Speaker 1: or if it even matters when. So just looking for 659 00:30:05,920 --> 00:30:09,720 Speaker 1: some advice on what to do with that account. Thank 660 00:30:09,760 --> 00:30:12,840 Speaker 1: you again, chill see you. Thank you for those kind words. 661 00:30:13,040 --> 00:30:15,360 Speaker 1: And you've got a great question here. First I'll say, 662 00:30:15,440 --> 00:30:18,960 Speaker 1: congrats on you doing a fantastic job. I mean, the 663 00:30:19,000 --> 00:30:21,120 Speaker 1: fact that you've got close to fifty just kind of 664 00:30:21,360 --> 00:30:23,720 Speaker 1: almost I know you didn't forget about that money, but 665 00:30:23,800 --> 00:30:26,080 Speaker 1: it almost sounds like you did. You're like Uncle Sam 666 00:30:26,160 --> 00:30:30,200 Speaker 1: Vibes when you say that you regrets to you for 667 00:30:30,280 --> 00:30:32,800 Speaker 1: doing such a good, great job setting. I mean, she's 668 00:30:32,800 --> 00:30:35,520 Speaker 1: got this old account from a previous employer, and so 669 00:30:35,840 --> 00:30:37,600 Speaker 1: that means this is like that is all money that 670 00:30:37,680 --> 00:30:41,320 Speaker 1: she was able to set aside with maybe her employers help, 671 00:30:41,320 --> 00:30:45,600 Speaker 1: who needs check my paycheck? Just over time that she 672 00:30:45,680 --> 00:30:48,200 Speaker 1: has done in the past. It makes it almost seem 673 00:30:48,240 --> 00:30:50,600 Speaker 1: like that it's not something she's contributed to over the 674 00:30:50,600 --> 00:30:53,520 Speaker 1: past couple of years. She's almost kind of forgotten about it, 675 00:30:53,560 --> 00:30:55,320 Speaker 1: but she knows it's still there and she's gonna go 676 00:30:55,320 --> 00:30:57,440 Speaker 1: ahead and get that thing feeling some love again, you know, 677 00:30:57,520 --> 00:31:00,320 Speaker 1: like she she's not gonna neglect that account. But let's 678 00:31:00,320 --> 00:31:03,720 Speaker 1: go ahead and talk about rollovers and conversions for a second, 679 00:31:03,760 --> 00:31:06,440 Speaker 1: because they're they're two different things and we're gonna address both. 680 00:31:06,800 --> 00:31:09,640 Speaker 1: But before we do that, uh, you know, one mistake 681 00:31:09,840 --> 00:31:11,960 Speaker 1: that some folks make is to keep their for O 682 00:31:12,000 --> 00:31:14,360 Speaker 1: one K with their former former employer when they leave 683 00:31:14,400 --> 00:31:17,320 Speaker 1: that job. And sometimes maybe that's the best move, but 684 00:31:17,360 --> 00:31:20,320 Speaker 1: other times it isn't. In the way to determine whether 685 00:31:20,480 --> 00:31:22,560 Speaker 1: or not this is a good move comes down to 686 00:31:22,720 --> 00:31:25,920 Speaker 1: the funds that you have access to within your company's 687 00:31:25,960 --> 00:31:29,160 Speaker 1: for one K plan, the funds, the investment options that 688 00:31:29,200 --> 00:31:32,560 Speaker 1: you have, and so if you're with Vanguard or Fidelity, Schwab. 689 00:31:33,040 --> 00:31:34,800 Speaker 1: You know, there's some other good ones out there as well. 690 00:31:34,920 --> 00:31:36,720 Speaker 1: It's likely you're gonna be best for you to stay put. 691 00:31:36,760 --> 00:31:39,720 Speaker 1: And fortunately you are with Fidelity, so I wouldn't necessarily 692 00:31:39,760 --> 00:31:43,160 Speaker 1: feel compelled to make a change necessarily. But if you 693 00:31:43,200 --> 00:31:45,120 Speaker 1: are wanting wanting to get all of your accounts under 694 00:31:45,160 --> 00:31:48,160 Speaker 1: one roof so that you don't forget to log in 695 00:31:48,200 --> 00:31:50,360 Speaker 1: for that account, I don't know what whatever reasons you 696 00:31:50,480 --> 00:31:54,880 Speaker 1: might have, I definitely understand. But generally speaking, Fidelity is 697 00:31:55,040 --> 00:31:57,440 Speaker 1: a fantastic provider to be with, for sure, one of 698 00:31:57,440 --> 00:32:00,960 Speaker 1: our favorites. And Matt, you mentioned for one K mistakes, 699 00:32:01,120 --> 00:32:04,200 Speaker 1: and there are all sorts of four own key mistakes 700 00:32:04,240 --> 00:32:07,120 Speaker 1: that people can make. One of one of them being uh, 701 00:32:07,280 --> 00:32:10,200 Speaker 1: not investing in their four own KAY, another one being 702 00:32:10,280 --> 00:32:12,640 Speaker 1: not getting the full company match, you know, another one 703 00:32:12,880 --> 00:32:15,840 Speaker 1: being not actually investing the money that you stick into 704 00:32:15,840 --> 00:32:18,040 Speaker 1: your four own K, just letting it sit idly buy 705 00:32:18,160 --> 00:32:20,240 Speaker 1: in cash. That's a bad idea too. But but one 706 00:32:20,280 --> 00:32:22,720 Speaker 1: of the biggest things that people do, uh, specifically in 707 00:32:22,720 --> 00:32:25,280 Speaker 1: a situation like Chelsea might be in, would be maybe 708 00:32:25,360 --> 00:32:27,400 Speaker 1: to cash out your four one K when you're leaving, 709 00:32:27,680 --> 00:32:31,440 Speaker 1: which would trigger taxes and fees. That's an awful idea. 710 00:32:31,840 --> 00:32:34,560 Speaker 1: So um yeah, that's something we want people to avoid, 711 00:32:34,640 --> 00:32:36,680 Speaker 1: just putting some four own che mistakes on your radar. 712 00:32:36,920 --> 00:32:39,360 Speaker 1: But normally you'd wanted the things that you want to 713 00:32:39,400 --> 00:32:42,680 Speaker 1: avoid doing exactly, and so normally, Chelsea, what she'd want 714 00:32:42,680 --> 00:32:45,120 Speaker 1: to do is a direct rollover to her new four 715 00:32:45,120 --> 00:32:47,520 Speaker 1: own K provider, the one that she's chosen to do 716 00:32:47,600 --> 00:32:50,160 Speaker 1: business with. Because if you personally receive the check, you 717 00:32:50,200 --> 00:32:52,640 Speaker 1: have sixty days to get that money back in and 718 00:32:52,680 --> 00:32:55,400 Speaker 1: invested before you're hit with income tax on the full amounts. 719 00:32:55,440 --> 00:32:58,360 Speaker 1: Let's say something gets lost in the mail, right or 720 00:32:58,680 --> 00:33:02,560 Speaker 1: you just kind of forget to do this incredibly important tax. 721 00:33:03,120 --> 00:33:05,240 Speaker 1: You are then charged the penalty as well, so the 722 00:33:05,280 --> 00:33:07,520 Speaker 1: time is taking. If you do a direct rollover, that 723 00:33:07,560 --> 00:33:09,960 Speaker 1: makes it easier for you. There's so much less to 724 00:33:10,000 --> 00:33:13,239 Speaker 1: go wrong in in that circumstance. But again, rolling up 725 00:33:13,240 --> 00:33:15,160 Speaker 1: four one cap over is what you want to do 726 00:33:15,560 --> 00:33:18,040 Speaker 1: if it isn't with a low cost provider that prioritizes 727 00:33:18,240 --> 00:33:21,240 Speaker 1: lower fees, and that there is actually a cool company 728 00:33:21,320 --> 00:33:25,440 Speaker 1: called Capitalize that helps you do this for free. We'll 729 00:33:25,480 --> 00:33:26,800 Speaker 1: link to them in the show notes. This kind of 730 00:33:27,000 --> 00:33:28,240 Speaker 1: it was put on a radar. I don't know, like 731 00:33:28,280 --> 00:33:30,000 Speaker 1: six months ago, we've mentioned it on the show before, 732 00:33:30,200 --> 00:33:32,920 Speaker 1: but we really like how easy they're making it, making 733 00:33:32,920 --> 00:33:35,480 Speaker 1: it for folks to make this switch, and they specifically 734 00:33:35,600 --> 00:33:38,160 Speaker 1: their goal is to get people with these low cost providers. 735 00:33:38,280 --> 00:33:41,360 Speaker 1: They're not managing your money, they're just doing this rollover. 736 00:33:41,360 --> 00:33:44,800 Speaker 1: They're just basically assisting you. And so it's it's it's 737 00:33:44,840 --> 00:33:46,959 Speaker 1: definitely a cool concept and I think it's gonna help 738 00:33:47,000 --> 00:33:50,520 Speaker 1: a lot of people make these rollovers happen knowing from 739 00:33:50,560 --> 00:33:53,840 Speaker 1: a company that's charging them egregious fees UH into a 740 00:33:53,840 --> 00:33:57,480 Speaker 1: company like Fidelity, Vanguard or Schwab that is is not 741 00:33:57,840 --> 00:34:00,400 Speaker 1: that is far superior to where their money is is 742 00:34:00,400 --> 00:34:03,120 Speaker 1: currently parked and invested totally, and considering all of the 743 00:34:03,160 --> 00:34:05,880 Speaker 1: different job changes that have happened over the past couple 744 00:34:05,880 --> 00:34:07,800 Speaker 1: of years, that we do want this to be on 745 00:34:07,840 --> 00:34:10,839 Speaker 1: your radar. We do want you to have eyes on 746 00:34:10,920 --> 00:34:13,279 Speaker 1: your different retirement accounts. But let's talk about doing a 747 00:34:13,360 --> 00:34:16,440 Speaker 1: Roth conversion, which is what Chelsea is basically asking about here. 748 00:34:17,160 --> 00:34:19,799 Speaker 1: In a down market, doing a Roth conversion can be 749 00:34:19,840 --> 00:34:22,799 Speaker 1: a brilliant move. That is, if you have the cash 750 00:34:22,840 --> 00:34:25,239 Speaker 1: on hand to pay the tax bill. Uh. And how 751 00:34:25,320 --> 00:34:28,799 Speaker 1: much that will be depends on your adjusted gross income UH. 752 00:34:28,840 --> 00:34:31,120 Speaker 1: And that a g I. It's gonna be higher in 753 00:34:31,160 --> 00:34:33,799 Speaker 1: the year that you execute that Roth conversion because you're 754 00:34:33,840 --> 00:34:36,400 Speaker 1: gonna be taxed on that money. You were able to 755 00:34:36,400 --> 00:34:39,719 Speaker 1: put that money aside tax deferred, so pre tax. But 756 00:34:39,880 --> 00:34:42,360 Speaker 1: now if you're gonna move it over into that Rath bucket, 757 00:34:42,480 --> 00:34:46,319 Speaker 1: you're gonna have to pay the tax money. Sam, they 758 00:34:46,320 --> 00:34:48,640 Speaker 1: wants his money, and so if you make this conversion, 759 00:34:48,760 --> 00:34:50,880 Speaker 1: he's like, you gotta pay it now, exactly. But the 760 00:34:50,880 --> 00:34:53,359 Speaker 1: great thing about converting your pre tax dollars to post 761 00:34:53,400 --> 00:34:55,319 Speaker 1: tax is that you'll never have to worry about being 762 00:34:55,320 --> 00:34:57,640 Speaker 1: taxed on the money you convert or the gains that 763 00:34:57,640 --> 00:35:01,480 Speaker 1: you're gonna receive for forever. I was gonna say, you know, 764 00:35:01,520 --> 00:35:05,120 Speaker 1: for decades and decades, but literally forever. So even Chelsea's 765 00:35:05,200 --> 00:35:08,640 Speaker 1: cry genically frozen body, uh if if that technology develops, 766 00:35:08,840 --> 00:35:12,120 Speaker 1: will never have to pay tax again. Uncle Sam gets 767 00:35:12,120 --> 00:35:13,920 Speaker 1: paid now and goes away for the rest of your 768 00:35:13,920 --> 00:35:16,520 Speaker 1: life when it comes to at least uh money that 769 00:35:16,600 --> 00:35:19,239 Speaker 1: you make from that account exactly. Yeah. And and again 770 00:35:19,280 --> 00:35:21,200 Speaker 1: the reason that this is a brilliant idea is like, 771 00:35:21,280 --> 00:35:23,359 Speaker 1: essentially we're kind of talking about timing the market, which 772 00:35:23,600 --> 00:35:25,200 Speaker 1: you're never going to hear us encourage you to do. 773 00:35:25,880 --> 00:35:28,440 Speaker 1: But basically the reason that this is, you know that 774 00:35:28,520 --> 00:35:30,919 Speaker 1: this ends up being working out to your favors because 775 00:35:30,920 --> 00:35:33,040 Speaker 1: you have a smaller tax base. You're you know, the 776 00:35:33,080 --> 00:35:34,680 Speaker 1: amount that you have set aside is smaller, and so 777 00:35:34,680 --> 00:35:37,680 Speaker 1: you're gonna you're gonna pay a less amount of tax 778 00:35:37,920 --> 00:35:39,719 Speaker 1: on that money. And the other thing too, to keep 779 00:35:39,760 --> 00:35:41,920 Speaker 1: in mind, if you don't have enough to convert the 780 00:35:42,000 --> 00:35:45,120 Speaker 1: full amounts, you know that the full forty dollars, you 781 00:35:45,200 --> 00:35:47,040 Speaker 1: can do this a little bit at a time. You 782 00:35:47,080 --> 00:35:49,839 Speaker 1: can do some of these partial conversions. Maybe you can 783 00:35:49,840 --> 00:35:52,120 Speaker 1: set up let's see, you got forty what if you 784 00:35:52,120 --> 00:35:54,440 Speaker 1: set aside eight thousand dollars for the next six years, 785 00:35:54,680 --> 00:35:57,400 Speaker 1: that could be the path forward for you. That could be. 786 00:35:57,600 --> 00:35:59,600 Speaker 1: But here's the thing, it's also a better time to 787 00:35:59,640 --> 00:36:01,919 Speaker 1: do it right out because the markets come right Yeah 788 00:36:02,000 --> 00:36:04,440 Speaker 1: Chelsea mentioned that she doesn't have the money. Yeah, exactly. 789 00:36:04,520 --> 00:36:06,160 Speaker 1: Then you've got to kind of plant it out spaces 790 00:36:06,200 --> 00:36:08,560 Speaker 1: down to your situation. But and while it always sucks 791 00:36:08,560 --> 00:36:11,400 Speaker 1: to see your retirement nest eggs shrink by ten dollars 792 00:36:11,440 --> 00:36:13,759 Speaker 1: like that. That's not fun. But if you're in that 793 00:36:13,760 --> 00:36:16,359 Speaker 1: well building phase of your life, it shouldn't face you, right, 794 00:36:16,400 --> 00:36:18,719 Speaker 1: And I love what Chelsea's doing. She's looking to make 795 00:36:19,040 --> 00:36:21,560 Speaker 1: lemonade out of the lemons of a down market and 796 00:36:21,600 --> 00:36:24,440 Speaker 1: a roth conversion. It kind of can feel like a 797 00:36:24,480 --> 00:36:27,760 Speaker 1: financial gut punch for for a quick second, right, because 798 00:36:27,760 --> 00:36:29,800 Speaker 1: you're coming out of pocket with money. Let's say that 799 00:36:29,800 --> 00:36:31,520 Speaker 1: you've been able to save up on the side in 800 00:36:31,600 --> 00:36:34,120 Speaker 1: order to pay a bigger tax bill. But the kind 801 00:36:34,120 --> 00:36:36,920 Speaker 1: of gut punch that that Chelsea might endure in this year, 802 00:36:36,960 --> 00:36:39,080 Speaker 1: it's actually going to serve her well in the future 803 00:36:39,120 --> 00:36:41,560 Speaker 1: for decades to come. So it's sort of like eating 804 00:36:41,560 --> 00:36:45,120 Speaker 1: your financial broccoli and right, like, well, if you know, 805 00:36:45,200 --> 00:36:48,319 Speaker 1: assuming you hate vegetables like all it does, but you 806 00:36:48,360 --> 00:36:50,719 Speaker 1: know that this is going to serve some vegetables. Okay, 807 00:36:50,760 --> 00:36:52,000 Speaker 1: you know this is going to serve you better for 808 00:36:52,040 --> 00:36:54,040 Speaker 1: the long long haul, yes, and and so yeah, we 809 00:36:54,080 --> 00:36:56,239 Speaker 1: would say this is actually a move that more people 810 00:36:56,280 --> 00:37:00,240 Speaker 1: should be considering in this current environment with a down market. 811 00:37:00,280 --> 00:37:03,239 Speaker 1: But again, so much depends on your specific tax situation, 812 00:37:03,320 --> 00:37:06,200 Speaker 1: your ability to pay a much larger tax bill. This 813 00:37:06,280 --> 00:37:08,640 Speaker 1: coming April. If you're unsure whether or not it's right 814 00:37:08,640 --> 00:37:10,800 Speaker 1: for you, it might make sense to pay a financial 815 00:37:10,800 --> 00:37:13,120 Speaker 1: advisor for an hour or two of their time. It 816 00:37:13,120 --> 00:37:15,320 Speaker 1: could be well worth doing that before pulling the trigger. 817 00:37:15,560 --> 00:37:17,520 Speaker 1: But for someone like Chelsea, it sounds like she knows 818 00:37:17,760 --> 00:37:20,040 Speaker 1: kind of what she's doing. And Chelsea, we would say, yeah, 819 00:37:20,080 --> 00:37:21,640 Speaker 1: if you have the money to pay the tax bill, 820 00:37:21,880 --> 00:37:24,359 Speaker 1: this could be a great move for your financial future. Yeah, 821 00:37:24,400 --> 00:37:26,200 Speaker 1: all right, We've got a couple more questions we're gonna 822 00:37:26,200 --> 00:37:29,319 Speaker 1: get to, including that question about a listener who's looking 823 00:37:29,360 --> 00:37:31,600 Speaker 1: to buy a duplex. We'll get to that one plus 824 00:37:31,600 --> 00:37:43,080 Speaker 1: one other right after this break. How do you do? 825 00:37:43,200 --> 00:37:46,080 Speaker 1: We're back from the break, Matt. You said okay, doki earlier, 826 00:37:46,120 --> 00:37:48,640 Speaker 1: so I figured i'd go something even a little more 827 00:37:48,719 --> 00:37:52,400 Speaker 1: bumpkin sound. We're gonna take a country. But we've got 828 00:37:52,440 --> 00:37:54,239 Speaker 1: a couple more questions to get to on this Ask 829 00:37:54,400 --> 00:37:57,600 Speaker 1: htm episode. There's a snake in my boot, okay, witty, 830 00:37:58,520 --> 00:37:59,800 Speaker 1: And the next question that we're gonna get to you 831 00:37:59,880 --> 00:38:03,520 Speaker 1: right now is one about choosing the right high inter 832 00:38:03,640 --> 00:38:07,400 Speaker 1: savings account. Hi, Matt and Jewel. It's Peter from Massachusetts. 833 00:38:07,960 --> 00:38:10,239 Speaker 1: I've been listening to you guys for a few years now, 834 00:38:10,480 --> 00:38:12,680 Speaker 1: and I've really learned a lot and appreciate all the 835 00:38:12,719 --> 00:38:15,799 Speaker 1: great and balance advice that you give. In the last 836 00:38:15,800 --> 00:38:19,640 Speaker 1: two years, I've started a new job, married, purchased a 837 00:38:19,680 --> 00:38:22,520 Speaker 1: home with a rental unit, moved twice, become a landlord, 838 00:38:22,560 --> 00:38:25,040 Speaker 1: and become a fauthor. Needless to say, it's been a 839 00:38:25,040 --> 00:38:27,160 Speaker 1: crazy but wonderful couple of years, and you guys have 840 00:38:27,239 --> 00:38:30,040 Speaker 1: been my guiding star on the money aspect of a 841 00:38:30,040 --> 00:38:33,080 Speaker 1: lot of those huge life changes. Thank you so much 842 00:38:33,320 --> 00:38:36,319 Speaker 1: for all that you do and all your advice. My 843 00:38:36,320 --> 00:38:38,920 Speaker 1: wife and I currently have about three months expenses in 844 00:38:38,920 --> 00:38:41,400 Speaker 1: our emergency fund and I was wanting to get your 845 00:38:41,400 --> 00:38:44,040 Speaker 1: advice and input on finding a new high yield savings 846 00:38:44,080 --> 00:38:46,879 Speaker 1: account to put it in. We're currently getting zero point 847 00:38:46,880 --> 00:38:49,040 Speaker 1: four percent, but I see that there are now online 848 00:38:49,080 --> 00:38:53,719 Speaker 1: banks offering over two percents. A few questions. First, would 849 00:38:53,760 --> 00:38:56,200 Speaker 1: you recommend just going with the highest rate account I 850 00:38:56,239 --> 00:38:59,280 Speaker 1: can find? As of today, looks like both Basque Bank 851 00:38:59,360 --> 00:39:02,360 Speaker 1: in my bank Gaing Direct are both offering rates of 852 00:39:02,400 --> 00:39:06,799 Speaker 1: two point zero two percents? Second, um, should I just 853 00:39:06,840 --> 00:39:08,600 Speaker 1: go ahead and open it account or should I wait 854 00:39:08,640 --> 00:39:11,319 Speaker 1: a bit longer to see if interest rates continue to 855 00:39:11,360 --> 00:39:13,759 Speaker 1: climb and I could get a better rate at some bank. 856 00:39:14,440 --> 00:39:17,839 Speaker 1: And then lastly, um, do you guys know of any 857 00:39:17,880 --> 00:39:20,680 Speaker 1: banks that actually do a good job raising the rates 858 00:39:21,120 --> 00:39:24,640 Speaker 1: um as overall rates go up, or conversely are hesitant 859 00:39:24,920 --> 00:39:27,719 Speaker 1: to lower the lower their rates. Um, it would be 860 00:39:27,719 --> 00:39:29,400 Speaker 1: worth it to me to sacrifice a bit on the 861 00:39:29,400 --> 00:39:31,399 Speaker 1: overall rate if I know that the bank will kind 862 00:39:31,440 --> 00:39:34,239 Speaker 1: of stay relatively competitive and I won't have to get 863 00:39:34,280 --> 00:39:36,920 Speaker 1: a new accounts every couple of years to get the 864 00:39:36,960 --> 00:39:41,200 Speaker 1: best rate. Really appreciate all you do and thank you bye. Alright, 865 00:39:41,200 --> 00:39:43,839 Speaker 1: Peter Man, you are in that busy time of life. 866 00:39:43,880 --> 00:39:47,360 Speaker 1: I feel like he's taken ten years and sort of yeah, 867 00:39:47,800 --> 00:39:49,840 Speaker 1: getting down to two years. But congrats on all of 868 00:39:49,840 --> 00:39:54,160 Speaker 1: those amazing accomplishments, especially becoming a father. Um. Yeah, Like 869 00:39:54,200 --> 00:39:56,239 Speaker 1: we we know that those those late twenties, those early 870 00:39:56,280 --> 00:39:59,879 Speaker 1: thirties can be pretty crazy. Honestly, even late thirties can 871 00:40:00,040 --> 00:40:02,680 Speaker 1: feel pretty insane as the time with all the different 872 00:40:02,760 --> 00:40:04,600 Speaker 1: all the young Kida was trying to build a business. 873 00:40:05,000 --> 00:40:07,480 Speaker 1: But I wouldn't have it any other way. It's simultaneously 874 00:40:07,719 --> 00:40:12,080 Speaker 1: fun and rewarding and crazy, all mixed in together. That's 875 00:40:12,080 --> 00:40:14,399 Speaker 1: like the exact conversation Emily and I had after coming 876 00:40:14,400 --> 00:40:17,200 Speaker 1: back from our beach trip. And my my friend told 877 00:40:17,200 --> 00:40:20,600 Speaker 1: me specifically to call any sort of travel with your kids, 878 00:40:20,640 --> 00:40:22,280 Speaker 1: call it a trip, do not call it a vacation. 879 00:40:22,760 --> 00:40:25,960 Speaker 1: And I think he spotted, because, yeah, we needed like 880 00:40:26,000 --> 00:40:28,600 Speaker 1: a vacation. From the vacation, you don't feel super relaxed 881 00:40:28,840 --> 00:40:31,239 Speaker 1: after going on a trip with Yeah, with the kids, 882 00:40:31,280 --> 00:40:33,239 Speaker 1: it was still so much fun. I wouldn't have it 883 00:40:33,239 --> 00:40:36,360 Speaker 1: any other way. But yeah, going to going on a 884 00:40:36,400 --> 00:40:38,319 Speaker 1: trip with just just my wife and I sounds like 885 00:40:38,480 --> 00:40:41,400 Speaker 1: a blast too. But all right, let's let's keep talking 886 00:40:41,440 --> 00:40:44,759 Speaker 1: about Peter's question. And you know, it's nice job, by 887 00:40:44,760 --> 00:40:47,200 Speaker 1: the way, Peter, of building up a nice backstop of savings. 888 00:40:47,440 --> 00:40:49,680 Speaker 1: He mentioned the rate of point four percent, which was 889 00:40:49,920 --> 00:40:52,400 Speaker 1: I don't know, maybe standard like a year ago. But 890 00:40:52,520 --> 00:40:55,319 Speaker 1: fortunately rates have been going up for savers, so you 891 00:40:55,360 --> 00:40:57,759 Speaker 1: can definitely do better, right, You can definitely increase what 892 00:40:57,800 --> 00:41:00,239 Speaker 1: you're getting paid on your savings. And the cool thing 893 00:41:00,320 --> 00:41:02,960 Speaker 1: is rate increases at least right now, or kind of 894 00:41:03,160 --> 00:41:07,160 Speaker 1: a weekly occurrence at least from literally, yeah the best, 895 00:41:07,200 --> 00:41:09,000 Speaker 1: like it's happening every single week, and the most competitive 896 00:41:09,040 --> 00:41:10,759 Speaker 1: banks are doing this. They're saying if you're if you 897 00:41:10,800 --> 00:41:13,240 Speaker 1: get subscribe to their emails, they're sending you an email 898 00:41:13,360 --> 00:41:15,879 Speaker 1: once every once a month, twice a month, maybe three 899 00:41:15,880 --> 00:41:17,640 Speaker 1: times a month, saying like, hey, we just bumped up 900 00:41:17,640 --> 00:41:20,200 Speaker 1: our our savings rate again. We like seeing that because 901 00:41:20,200 --> 00:41:22,800 Speaker 1: it's been a tough time out there for savers overall 902 00:41:22,960 --> 00:41:25,759 Speaker 1: for for quite a while. And you asked about whether 903 00:41:25,880 --> 00:41:28,600 Speaker 1: or not you should wait to make this move, we'd say, no, 904 00:41:28,680 --> 00:41:30,839 Speaker 1: way with this on your to do list and make 905 00:41:30,880 --> 00:41:33,640 Speaker 1: it happen quickly. It's it's actually not as difficult as 906 00:41:33,680 --> 00:41:35,520 Speaker 1: you you think it might be. We have an article 907 00:41:35,520 --> 00:41:38,040 Speaker 1: actually about how to switch banks, and we'll link to 908 00:41:38,040 --> 00:41:39,279 Speaker 1: that in the show notes. But it's one of those 909 00:41:39,280 --> 00:41:40,839 Speaker 1: things where people build up in their mind like it's 910 00:41:40,880 --> 00:41:43,840 Speaker 1: gonna be a big deal, and really it's not. Oftentimes 911 00:41:43,840 --> 00:41:46,360 Speaker 1: you can avoid fees and make more money on your money, 912 00:41:46,560 --> 00:41:49,000 Speaker 1: and we think that's like a double win totally. Yeah, 913 00:41:49,120 --> 00:41:51,279 Speaker 1: and Peter, you asked whether you should just go at 914 00:41:51,280 --> 00:41:53,560 Speaker 1: the highest rate that you could find, or maybe consider 915 00:41:53,600 --> 00:41:56,360 Speaker 1: some other factors. You don't necessarily want to switch to 916 00:41:56,400 --> 00:41:58,640 Speaker 1: the bank with the highest rate. Now, if they are 917 00:41:58,719 --> 00:42:02,359 Speaker 1: likely to continue increase seeing rates as the different market 918 00:42:02,440 --> 00:42:06,000 Speaker 1: rates out there rise. But unfortunately, nobody knows what individual 919 00:42:06,080 --> 00:42:08,920 Speaker 1: banks are going to do. Uh, and so that's that 920 00:42:09,000 --> 00:42:11,319 Speaker 1: that makes that a tough question. And we've also talked 921 00:42:11,360 --> 00:42:13,600 Speaker 1: about how some fintech companies, how they may not be 922 00:42:13,680 --> 00:42:17,239 Speaker 1: around for long, you know, touting their incredible rates that 923 00:42:17,280 --> 00:42:19,120 Speaker 1: are either too good to be true or you know, 924 00:42:19,200 --> 00:42:21,040 Speaker 1: that might come back down to earth sooner than later. 925 00:42:21,320 --> 00:42:23,239 Speaker 1: And so since we don't know the future, we would 926 00:42:23,239 --> 00:42:26,200 Speaker 1: suggest going with a bank that just has a solid history. 927 00:42:26,560 --> 00:42:29,160 Speaker 1: And so banks like ally C I T Joel. You've 928 00:42:29,160 --> 00:42:32,520 Speaker 1: been with Discover for a really long time, Marcus. These 929 00:42:32,520 --> 00:42:35,399 Speaker 1: are some of our favorite online accounts savings accounts out there. 930 00:42:35,719 --> 00:42:38,880 Speaker 1: They all do a really good job of staying you know, 931 00:42:38,960 --> 00:42:41,359 Speaker 1: they may not be the best in the thought the 932 00:42:41,360 --> 00:42:43,160 Speaker 1: tip of the spear. You know, they may not be 933 00:42:43,160 --> 00:42:45,200 Speaker 1: the cutting edge when it comes to the high rates, 934 00:42:45,400 --> 00:42:47,120 Speaker 1: but they're still going to be in that upper echelon. 935 00:42:47,680 --> 00:42:50,319 Speaker 1: And they also have just really solid, you know, use 936 00:42:50,440 --> 00:42:53,319 Speaker 1: user interfaces, they've got great apps, they've got other nice 937 00:42:53,360 --> 00:42:55,279 Speaker 1: futures out there. So you don't only want to be 938 00:42:55,320 --> 00:42:58,439 Speaker 1: looking at the interest rates. But because you never know 939 00:42:58,640 --> 00:43:01,480 Speaker 1: that top bank who's got the hyhest and straight today, 940 00:43:01,640 --> 00:43:03,880 Speaker 1: you know they may not have the highest rate tomorrow 941 00:43:04,400 --> 00:43:07,480 Speaker 1: or definitely a year or two from now. And ideally 942 00:43:07,520 --> 00:43:09,480 Speaker 1: you're not hopping from one bank to the next, and 943 00:43:09,480 --> 00:43:11,479 Speaker 1: so you want to look at some of these other 944 00:43:11,640 --> 00:43:14,920 Speaker 1: additional factors that are going to make this bank a 945 00:43:14,960 --> 00:43:17,239 Speaker 1: company that you're happy to do business with for years 946 00:43:17,280 --> 00:43:18,799 Speaker 1: to come. Yeah, you want them to make your life 947 00:43:18,800 --> 00:43:21,000 Speaker 1: easy from the standpoint of not having to be continually 948 00:43:21,040 --> 00:43:23,319 Speaker 1: shot for rates. You know that they're continually going to 949 00:43:23,360 --> 00:43:25,239 Speaker 1: be in the upper echelon even if they're not, like 950 00:43:25,280 --> 00:43:27,040 Speaker 1: you said in the very tip of the spear, if 951 00:43:27,040 --> 00:43:29,680 Speaker 1: they're not top point zero one percent or something like that. 952 00:43:29,880 --> 00:43:31,919 Speaker 1: And all the banks that that I just mentioned, they're 953 00:43:31,960 --> 00:43:34,560 Speaker 1: gonna basically hold their place, like they're going to hold 954 00:43:34,560 --> 00:43:36,279 Speaker 1: their ranking for the for the most part, like as 955 00:43:36,360 --> 00:43:39,160 Speaker 1: rates rise, they're going to typically increase their rates, or 956 00:43:39,160 --> 00:43:40,919 Speaker 1: at least they have in recent years, and we think 957 00:43:40,960 --> 00:43:43,360 Speaker 1: they will continue to do so. We like them for 958 00:43:43,440 --> 00:43:45,920 Speaker 1: multiple reasons, even beyond just the fact that they might 959 00:43:45,960 --> 00:43:48,920 Speaker 1: be paying the very tippy top ring exactly. And we 960 00:43:49,000 --> 00:43:51,640 Speaker 1: don't want you chasing rates, right because you're chasing fractions 961 00:43:51,640 --> 00:43:53,759 Speaker 1: over percent that ultimately don't matter all that much. They're 962 00:43:53,760 --> 00:43:55,520 Speaker 1: not gonna make much of a difference in your bottom line. 963 00:43:56,200 --> 00:44:00,040 Speaker 1: Changing banks once makes sense. Changing banks multiple times a 964 00:44:00,120 --> 00:44:02,200 Speaker 1: year is just kind of going to be a waste 965 00:44:02,239 --> 00:44:04,359 Speaker 1: of your time. And what we want you to make 966 00:44:04,360 --> 00:44:06,520 Speaker 1: sure that you're doing everybody out there, not just Peter, 967 00:44:06,960 --> 00:44:09,760 Speaker 1: is that you're going with the bank that is paying 968 00:44:09,800 --> 00:44:12,839 Speaker 1: you far beyond the national average on your savings. Within 969 00:44:12,880 --> 00:44:15,520 Speaker 1: the national average is something like point one percent. The 970 00:44:15,560 --> 00:44:18,520 Speaker 1: big banks are like point zero one percent. They don't 971 00:44:18,520 --> 00:44:20,640 Speaker 1: even care, they're not even trying to compete on this front. 972 00:44:20,760 --> 00:44:22,520 Speaker 1: So you definitely want to get rid of them, um. 973 00:44:22,560 --> 00:44:24,799 Speaker 1: And beyond that, you might just be splitting hairs, right, 974 00:44:24,800 --> 00:44:26,960 Speaker 1: You might be looking for an extra few dollars a 975 00:44:27,040 --> 00:44:30,040 Speaker 1: year by pumping your rate up like point one percent. 976 00:44:30,480 --> 00:44:33,000 Speaker 1: And so yeah, this is the savings account equivalent to 977 00:44:33,480 --> 00:44:38,440 Speaker 1: driving across town. Yeah, because that gas station was technically 978 00:44:38,480 --> 00:44:40,600 Speaker 1: a little more affordable. But but you know, what's it 979 00:44:40,600 --> 00:44:43,000 Speaker 1: actually saving you? What's what's it actually costing you in 980 00:44:43,040 --> 00:44:45,480 Speaker 1: other ways? Yes, exactly, in time and in gast to 981 00:44:45,520 --> 00:44:47,920 Speaker 1: get there. Well, some of the best rates, by the way, 982 00:44:47,960 --> 00:44:49,600 Speaker 1: you can find them. A site that we go to 983 00:44:49,719 --> 00:44:52,080 Speaker 1: frequently is doctor of Credit and they keep a great 984 00:44:52,120 --> 00:44:55,000 Speaker 1: list of the current rates the banks are paying when 985 00:44:55,040 --> 00:44:57,960 Speaker 1: it comes to savings accounts. But we we ran the numbers, 986 00:44:57,960 --> 00:45:00,320 Speaker 1: and even if you have a fully funded emergency fund 987 00:45:00,320 --> 00:45:03,600 Speaker 1: of something like, we're just not talking about a whole 988 00:45:03,640 --> 00:45:05,200 Speaker 1: lot of money here. So if you look at the 989 00:45:05,200 --> 00:45:07,839 Speaker 1: best rate out there, which is like two point eight percent, yeah, 990 00:45:08,000 --> 00:45:10,560 Speaker 1: Doctor of Credit, that's currently the actual highest, the best 991 00:45:10,600 --> 00:45:12,799 Speaker 1: one we've seen. Well you compared it to see I 992 00:45:12,840 --> 00:45:16,000 Speaker 1: T S rate, which is pretty great. It's it's one 993 00:45:16,040 --> 00:45:17,640 Speaker 1: of the top ones. I think they're paying one point 994 00:45:17,719 --> 00:45:19,520 Speaker 1: nine percent right now. Yeah, they're kind of in that 995 00:45:19,640 --> 00:45:22,600 Speaker 1: upper echalon. Yeah, they're one of the best. But yeah, 996 00:45:23,080 --> 00:45:25,960 Speaker 1: we're talking about a difference of about a hundred dollars 997 00:45:26,000 --> 00:45:28,920 Speaker 1: in annual interest on thirty case sitting in your bank account. 998 00:45:29,200 --> 00:45:31,879 Speaker 1: So I'm not saying it's it's negligible, but I'm saying 999 00:45:31,920 --> 00:45:35,920 Speaker 1: you've got nothing right. But I mean, I mean, hopefully 1000 00:45:35,920 --> 00:45:38,600 Speaker 1: you're not thinking about hopping around, you know, hopping banks 1001 00:45:38,600 --> 00:45:40,359 Speaker 1: every single year, and the fact that you just don't 1002 00:45:40,360 --> 00:45:42,480 Speaker 1: know if they're going to be able to if that bank, 1003 00:45:42,600 --> 00:45:44,080 Speaker 1: which I've never heard of if they're going to be 1004 00:45:44,080 --> 00:45:47,040 Speaker 1: able to maintain their place at the top of the pack, 1005 00:45:47,360 --> 00:45:49,480 Speaker 1: at the top of the list. Um And you know, Peter, 1006 00:45:49,560 --> 00:45:51,520 Speaker 1: the banks that you mentioned that like, they do seem 1007 00:45:51,520 --> 00:45:53,800 Speaker 1: pretty solid. They are on the list. But we just 1008 00:45:53,800 --> 00:45:55,200 Speaker 1: don't want you to get stuck with one of the 1009 00:45:55,239 --> 00:45:58,359 Speaker 1: fintech companies that won't be around a year from now 1010 00:45:58,719 --> 00:46:01,040 Speaker 1: in an attempt to score a fire rate that also 1011 00:46:01,239 --> 00:46:02,960 Speaker 1: may not be around for all that long. And so 1012 00:46:03,040 --> 00:46:06,160 Speaker 1: one thing that maybe you aren't thinking about, but that's 1013 00:46:06,200 --> 00:46:08,080 Speaker 1: worth considering, is to sign up for a bank that 1014 00:46:08,120 --> 00:46:11,120 Speaker 1: offers uh sign up bonus for opening a new account. 1015 00:46:11,160 --> 00:46:12,920 Speaker 1: Because you may not know what the future holds, but 1016 00:46:12,920 --> 00:46:14,800 Speaker 1: if you know that right now you can score this bonus, 1017 00:46:14,960 --> 00:46:17,080 Speaker 1: well that's a burden hand right better. That's better than 1018 00:46:17,120 --> 00:46:20,120 Speaker 1: two in the bush. For instance, Discover they kind of 1019 00:46:20,160 --> 00:46:21,719 Speaker 1: have the best of both worlds going on right now. 1020 00:46:21,719 --> 00:46:25,280 Speaker 1: You can snag a hundred fifty two bonus for opening 1021 00:46:25,280 --> 00:46:28,960 Speaker 1: a savings account with them, and plus they have a 1022 00:46:29,000 --> 00:46:31,719 Speaker 1: great product with very competitive rates. And so that's a 1023 00:46:31,760 --> 00:46:33,680 Speaker 1: way to I don't know, maybe kind of head your 1024 00:46:33,680 --> 00:46:35,480 Speaker 1: bets a little bit to ensure that you get a 1025 00:46:35,480 --> 00:46:38,200 Speaker 1: little extra of a bonus now while also knowing that 1026 00:46:38,200 --> 00:46:40,239 Speaker 1: you're doing business with a company who is going to 1027 00:46:40,280 --> 00:46:43,520 Speaker 1: be around and who has solid online offerings, and so 1028 00:46:43,600 --> 00:46:46,319 Speaker 1: that's definitely something you want to keep in mind. And 1029 00:46:46,480 --> 00:46:48,120 Speaker 1: just thinking to like, what is it that you're looking 1030 00:46:48,120 --> 00:46:49,680 Speaker 1: for out of your bank, Like I'm thinking even ten 1031 00:46:49,760 --> 00:46:52,680 Speaker 1: years ago with an online bank, like mobile deposit was 1032 00:46:52,880 --> 00:46:55,600 Speaker 1: incredibly important for me, but at the time, not many 1033 00:46:55,640 --> 00:46:58,000 Speaker 1: folks were offering that, and so just seeing what some 1034 00:46:58,040 --> 00:47:00,719 Speaker 1: of the different offerings are out there, uh, and just 1035 00:47:00,800 --> 00:47:02,680 Speaker 1: making sure that you are going with a bank that 1036 00:47:02,800 --> 00:47:05,160 Speaker 1: is going to suit your needs and that you're not 1037 00:47:05,239 --> 00:47:07,480 Speaker 1: just looking at the interest rate that they're paying. Ye 1038 00:47:08,080 --> 00:47:10,239 Speaker 1: makes me think about cover offers free checks by the way, 1039 00:47:10,320 --> 00:47:13,120 Speaker 1: and I was like super inentused about that when I 1040 00:47:13,120 --> 00:47:14,680 Speaker 1: first signed out for the count. Now I'm like, I 1041 00:47:14,680 --> 00:47:17,640 Speaker 1: think I've used three of those checks. But yeah, those 1042 00:47:17,680 --> 00:47:19,960 Speaker 1: additional parks are worth noting. You never know, because if 1043 00:47:19,960 --> 00:47:22,040 Speaker 1: it saves you, you know, ten bucks on buying buying 1044 00:47:22,080 --> 00:47:24,480 Speaker 1: some checks and you're a frequent check writer, you know, 1045 00:47:24,600 --> 00:47:27,200 Speaker 1: that's not that's not a bad additional benefit. Yeah. The 1046 00:47:27,200 --> 00:47:29,600 Speaker 1: the the interest rate race makes me think of like 1047 00:47:29,640 --> 00:47:32,480 Speaker 1: the mega hurts race of desktop computers back in the nineties, 1048 00:47:32,480 --> 00:47:34,560 Speaker 1: where it's just like, oh man, you got the new 1049 00:47:34,680 --> 00:47:39,520 Speaker 1: three thirty three Mega Hurts Dell or Packard or whatever 1050 00:47:39,520 --> 00:47:41,880 Speaker 1: the computers were back then, or the current megapixel race 1051 00:47:41,920 --> 00:47:44,520 Speaker 1: when it comes to smartphone cameras. Exactly, I've got forty 1052 00:47:44,520 --> 00:47:46,880 Speaker 1: eight megap There are more things to consider than just 1053 00:47:46,920 --> 00:47:48,680 Speaker 1: that number. Had forty two in the last one and 1054 00:47:48,920 --> 00:47:51,120 Speaker 1: is not making any difference because you still take bad pictures. 1055 00:47:51,120 --> 00:47:55,399 Speaker 1: But let's move on to our last question for this episode, Matt, 1056 00:47:55,440 --> 00:47:58,279 Speaker 1: This one is from a listener who really wants to 1057 00:47:58,280 --> 00:48:01,800 Speaker 1: buy a duplex. Hi, Matt and Joel, this is Vicky 1058 00:48:01,840 --> 00:48:04,480 Speaker 1: from Ohio. I was approved for a loan in the 1059 00:48:04,520 --> 00:48:08,319 Speaker 1: amount of one forty six thousand dollars I'm putting down. 1060 00:48:09,719 --> 00:48:12,200 Speaker 1: The loan officer told me that the only way the 1061 00:48:12,239 --> 00:48:14,640 Speaker 1: loan would be approved was if I lived in one 1062 00:48:14,680 --> 00:48:17,680 Speaker 1: of the two apartments. It has to do with points 1063 00:48:17,760 --> 00:48:20,880 Speaker 1: and the loan amount being too low. This leaves me 1064 00:48:20,920 --> 00:48:23,760 Speaker 1: feeling unsure. I don't want to rent out my house 1065 00:48:23,960 --> 00:48:28,120 Speaker 1: but want the duplex. Any suggestions, Vicky, I am sorry 1066 00:48:28,160 --> 00:48:31,360 Speaker 1: that you are in this tough predicament, but first I 1067 00:48:31,360 --> 00:48:33,080 Speaker 1: want to say that. I am glad that you're trying 1068 00:48:33,120 --> 00:48:36,879 Speaker 1: to buy a rental property because a smart duplex buy 1069 00:48:37,120 --> 00:48:39,960 Speaker 1: can create just meaningful cash flow for years to come. 1070 00:48:40,239 --> 00:48:41,560 Speaker 1: It can be a nice part of your your wealth 1071 00:48:41,600 --> 00:48:45,480 Speaker 1: build building strategy. Certainly not all rainbows and sunshine. You know, 1072 00:48:45,520 --> 00:48:48,759 Speaker 1: it's not fully passive income, like we said earlier when 1073 00:48:48,760 --> 00:48:52,080 Speaker 1: we're talking with answering Andrew's question, It's got more elements 1074 00:48:52,120 --> 00:48:54,120 Speaker 1: of a part time job. But that doesn't mean that 1075 00:48:54,160 --> 00:48:57,040 Speaker 1: it's not worthwhile. And I am happy to hear that 1076 00:48:57,080 --> 00:48:59,160 Speaker 1: you are considering it. Yeah. At one point, Matt, you 1077 00:48:59,160 --> 00:49:01,720 Speaker 1: and I did an episode abou the myth of passive income, 1078 00:49:01,800 --> 00:49:04,680 Speaker 1: and it's just one of those things where that's how 1079 00:49:04,719 --> 00:49:06,880 Speaker 1: real estate gets build so much of the time. But 1080 00:49:07,040 --> 00:49:10,280 Speaker 1: anybody who has invested in single family or multifamily homes 1081 00:49:10,280 --> 00:49:13,080 Speaker 1: near where they live, where they're actively managing those properties, 1082 00:49:13,160 --> 00:49:16,920 Speaker 1: they have realized the stark reality that it is a 1083 00:49:16,960 --> 00:49:19,000 Speaker 1: little bit more like a part time job than than 1084 00:49:19,080 --> 00:49:21,680 Speaker 1: a lot of the influencers online. I want to make 1085 00:49:21,719 --> 00:49:24,319 Speaker 1: it seem, and so we like to take the less 1086 00:49:24,320 --> 00:49:28,279 Speaker 1: popular path that it's more work than the influencers say 1087 00:49:28,280 --> 00:49:30,360 Speaker 1: it's going to be. But it's also not nearly the 1088 00:49:30,480 --> 00:49:32,560 Speaker 1: nightmare that a lot of people try to scare you 1089 00:49:32,640 --> 00:49:35,080 Speaker 1: off thinking that it's going to be exactly that's our 1090 00:49:35,080 --> 00:49:37,360 Speaker 1: that's our balanced approach to really investing. And yeah, and 1091 00:49:37,520 --> 00:49:40,239 Speaker 1: we actually had Brandon Turner on the show a week 1092 00:49:40,280 --> 00:49:42,439 Speaker 1: ago and hopefully that got a bunch of folks fired 1093 00:49:42,520 --> 00:49:44,400 Speaker 1: up to do more digging when it comes to investing 1094 00:49:44,520 --> 00:49:46,640 Speaker 1: in real estate. We don't want to make it sound 1095 00:49:46,640 --> 00:49:48,319 Speaker 1: like something it isn't, but we also want to say 1096 00:49:48,320 --> 00:49:51,320 Speaker 1: that it is a great tool in your wealth building arsenal. 1097 00:49:51,560 --> 00:49:53,560 Speaker 1: But let's let's address the problem that the Vicki is 1098 00:49:53,600 --> 00:49:57,080 Speaker 1: having because down it's as a nice junker change as 1099 00:49:57,120 --> 00:49:59,680 Speaker 1: she saved up, which is great, and as an owner 1100 00:49:59,719 --> 00:50:01,359 Speaker 1: ocky and you'll be able to get the best terms 1101 00:50:01,400 --> 00:50:03,279 Speaker 1: and rate if you go in that direction, totally right. 1102 00:50:03,280 --> 00:50:06,080 Speaker 1: That's the magic number down to avoid p m I 1103 00:50:06,120 --> 00:50:08,120 Speaker 1: and get the best interest rates as long as you 1104 00:50:08,160 --> 00:50:10,400 Speaker 1: have like a great credit score. Two. But it sounds 1105 00:50:10,440 --> 00:50:12,719 Speaker 1: like you're not planning to live in this duplex, Viki. 1106 00:50:12,719 --> 00:50:14,920 Speaker 1: That's not what you want to do, which is totally fine. 1107 00:50:15,400 --> 00:50:17,239 Speaker 1: But here's the thing. Many lenders are gonna want you 1108 00:50:17,280 --> 00:50:20,160 Speaker 1: to put down more is the most common number when 1109 00:50:20,200 --> 00:50:23,040 Speaker 1: we're talking about buying a rental property like a duplex, 1110 00:50:23,280 --> 00:50:25,719 Speaker 1: And so your loan typically will come with a higher 1111 00:50:25,760 --> 00:50:28,880 Speaker 1: interest rate as an investor, roughly half a percent higher 1112 00:50:29,080 --> 00:50:31,040 Speaker 1: on average, So the terms are gonna look a little 1113 00:50:31,080 --> 00:50:33,799 Speaker 1: different as an investor. And that's I think why since 1114 00:50:33,800 --> 00:50:37,480 Speaker 1: you have down your loan officer is wanting you to 1115 00:50:37,560 --> 00:50:40,040 Speaker 1: move into the property and not just buy it with 1116 00:50:40,080 --> 00:50:42,000 Speaker 1: a higher rate. Whereas if you were able to bring 1117 00:50:42,000 --> 00:50:44,680 Speaker 1: more money to the table something of the purchase price, 1118 00:50:44,920 --> 00:50:46,920 Speaker 1: you should be able to get an investor loan for 1119 00:50:46,960 --> 00:50:49,879 Speaker 1: this property, no problem, that's right. Yeah, And of course 1120 00:50:50,080 --> 00:50:52,800 Speaker 1: the best move from a money from a financial standpoint 1121 00:50:52,840 --> 00:50:55,920 Speaker 1: is to move into that new investment property yourself, to 1122 00:50:56,280 --> 00:50:58,279 Speaker 1: move out of your current place. You get to rent 1123 00:50:58,320 --> 00:51:01,760 Speaker 1: that place and then you know, occupy half the duplex 1124 00:51:01,760 --> 00:51:04,000 Speaker 1: while you rent the other half out. Yeah, in all likelihood, 1125 00:51:04,040 --> 00:51:05,759 Speaker 1: your cash flow is gonna be higher and the term 1126 00:51:05,800 --> 00:51:07,920 Speaker 1: is gonna better on that loan. You can still get 1127 00:51:07,960 --> 00:51:10,719 Speaker 1: that loan with down. Um, it's kind of a win win, 1128 00:51:11,040 --> 00:51:13,239 Speaker 1: although there's a little bit of a loss because then 1129 00:51:13,280 --> 00:51:14,759 Speaker 1: you gotta move out of your house and you gotta 1130 00:51:14,800 --> 00:51:17,440 Speaker 1: move And sounds like that's not what you want to do. Yeah, exactly, 1131 00:51:17,480 --> 00:51:20,200 Speaker 1: But simultaneously, I don't know, maybe I'm not sure what 1132 00:51:20,239 --> 00:51:22,080 Speaker 1: you need to hear from us, Vicky. But if you 1133 00:51:22,120 --> 00:51:24,960 Speaker 1: are in the position to where, man, this would totally 1134 00:51:25,000 --> 00:51:27,280 Speaker 1: be a slam dunk decision for you from a financial standpoint, 1135 00:51:27,320 --> 00:51:29,720 Speaker 1: I'm willing to push you a little bit and say, 1136 00:51:30,080 --> 00:51:31,799 Speaker 1: is there a period of time that you can deal 1137 00:51:31,880 --> 00:51:33,919 Speaker 1: with that, what's going to feel like discomforts and what's 1138 00:51:33,920 --> 00:51:36,839 Speaker 1: going to feel like a new area, whatever it is. 1139 00:51:37,480 --> 00:51:39,840 Speaker 1: I definitely understand that personally it may not be what 1140 00:51:39,880 --> 00:51:42,160 Speaker 1: you want to do, but uh, in this case, I 1141 00:51:42,160 --> 00:51:43,799 Speaker 1: want you to think through the financials. I guess a 1142 00:51:43,800 --> 00:51:47,560 Speaker 1: little bit, and and sometimes, like we've talked about, Matt, 1143 00:51:47,680 --> 00:51:49,919 Speaker 1: sometimes the thing that makes the most money sense doesn't 1144 00:51:49,920 --> 00:51:52,000 Speaker 1: make the most sense for your life. But but sometimes 1145 00:51:52,000 --> 00:51:54,360 Speaker 1: a balancing act, sometimes you need to be driven to 1146 00:51:54,400 --> 00:51:56,880 Speaker 1: feel a little uncomfortable in order to progress more quickly 1147 00:51:56,880 --> 00:51:59,560 Speaker 1: in your wealth building journey. Exactly. But regardless, we would 1148 00:51:59,600 --> 00:52:02,000 Speaker 1: suggest you start talking to some other loan officers. We 1149 00:52:02,120 --> 00:52:04,600 Speaker 1: you know, we want you to get multiple quotes anyway, uh, 1150 00:52:04,640 --> 00:52:06,840 Speaker 1: because even if you don't have that extra five percent 1151 00:52:07,000 --> 00:52:09,680 Speaker 1: for your down payment, there are likely some loan officers 1152 00:52:09,680 --> 00:52:12,719 Speaker 1: out there who will be able and willing to lend 1153 00:52:12,719 --> 00:52:15,840 Speaker 1: you money for this property. Even if you stick to 1154 00:52:15,880 --> 00:52:18,839 Speaker 1: that down payment. It's not like you're bringing five percent 1155 00:52:18,880 --> 00:52:20,680 Speaker 1: at the table. They're still right, right, right, a lot 1156 00:52:20,680 --> 00:52:22,279 Speaker 1: of banks out there who are willing to lend you 1157 00:52:22,280 --> 00:52:25,319 Speaker 1: the money as an investor with typically they're starting at 1158 00:52:25,320 --> 00:52:30,000 Speaker 1: fifteen percent, right, And so I mean is very common. 1159 00:52:30,040 --> 00:52:32,239 Speaker 1: The terms won't be as favorable, but it can still 1160 00:52:32,239 --> 00:52:34,359 Speaker 1: make sense based on the purchase price and the likely 1161 00:52:34,400 --> 00:52:36,959 Speaker 1: rents for this unit, both those units. It could still 1162 00:52:37,000 --> 00:52:39,799 Speaker 1: be a great decision as an investment property. But yeah, 1163 00:52:39,840 --> 00:52:42,399 Speaker 1: you're gonna want to talk to other banks, other institutions 1164 00:52:42,440 --> 00:52:45,800 Speaker 1: to see uh, shop the market to find more favorable 1165 00:52:45,880 --> 00:52:47,960 Speaker 1: terms with the amount of money that you do have 1166 00:52:48,040 --> 00:52:49,920 Speaker 1: to put down on this place. All right, man, let's 1167 00:52:49,920 --> 00:52:54,399 Speaker 1: get back to our beer. This was by Schoffenhoffer, which 1168 00:52:54,440 --> 00:52:57,040 Speaker 1: is a great fruit half of Wisen, half of Eisen. 1169 00:52:57,239 --> 00:52:59,080 Speaker 1: I want to say it properly with a V instead 1170 00:52:59,080 --> 00:53:01,759 Speaker 1: of the w uh. This is an unfiltered heath of 1171 00:53:01,760 --> 00:53:04,600 Speaker 1: eiz and beer with great fruit juice and natural flavor. 1172 00:53:04,960 --> 00:53:07,360 Speaker 1: And also on here it says colored with beta carotene, 1173 00:53:08,680 --> 00:53:10,840 Speaker 1: which is totally I don't know if it's actually crappier 1174 00:53:10,880 --> 00:53:14,319 Speaker 1: or not. What are your thoughts on this one? You 1175 00:53:14,840 --> 00:53:16,439 Speaker 1: this is a beer that you enjoyed at the beach 1176 00:53:16,560 --> 00:53:17,960 Speaker 1: right on your on your last beach where they were 1177 00:53:18,000 --> 00:53:19,719 Speaker 1: out of the Stiegel Rattler grape fruit, and I was like, 1178 00:53:19,760 --> 00:53:22,600 Speaker 1: I'm gonna go with this thing. And it's actually it's 1179 00:53:22,600 --> 00:53:25,600 Speaker 1: a decent bit cheaper and tastes pretty similarly, so it's 1180 00:53:25,640 --> 00:53:27,640 Speaker 1: this might be something that I'm go into more and 1181 00:53:27,680 --> 00:53:30,880 Speaker 1: more during the summer, a great beach beer in particular, 1182 00:53:30,960 --> 00:53:33,440 Speaker 1: and a bit more beer like even than the Stiegel 1183 00:53:33,520 --> 00:53:36,880 Speaker 1: Rattler because it has those weedy beer elements. I was 1184 00:53:36,880 --> 00:53:39,239 Speaker 1: gonna say, it's a little more MALTI than what I 1185 00:53:39,280 --> 00:53:42,319 Speaker 1: remember Stiegel taste like Stiegel taste a little bit more 1186 00:53:42,440 --> 00:53:45,680 Speaker 1: fruit juicy, maybe like maybe a touch sweeter. Resist tastes 1187 00:53:45,680 --> 00:53:47,839 Speaker 1: a little multi er, like it's got more a little 1188 00:53:47,880 --> 00:53:49,960 Speaker 1: more body, a little more of a backbone. And of 1189 00:53:49,960 --> 00:53:51,920 Speaker 1: course the fact that it's got beta carotene, and it 1190 00:53:51,920 --> 00:53:55,239 Speaker 1: makes me think it also tasts that carrots a little bit. 1191 00:53:55,600 --> 00:53:57,640 Speaker 1: But I will say the color is beautiful. I'm just 1192 00:53:57,640 --> 00:53:59,480 Speaker 1: gonna chalk that up to one of my vegetable servings 1193 00:53:59,480 --> 00:54:02,439 Speaker 1: for that I actually want. I wonder if it does, 1194 00:54:02,640 --> 00:54:04,920 Speaker 1: because I mean, Benny, carrote is like the main thing 1195 00:54:04,960 --> 00:54:07,680 Speaker 1: in carrots that makes that makes it good for you, right. 1196 00:54:07,840 --> 00:54:10,120 Speaker 1: I can feel my oxtag getting better as we speak, 1197 00:54:10,239 --> 00:54:12,840 Speaker 1: although there's no I'm guessing there's a lot more roughage 1198 00:54:13,000 --> 00:54:15,799 Speaker 1: in a carrot as opposed to this beer. But yeah, 1199 00:54:15,840 --> 00:54:17,520 Speaker 1: I think this is a great, like you said, a 1200 00:54:17,520 --> 00:54:20,960 Speaker 1: great alternative to Stiegel. Don't ruin my good feelings with facts, man, 1201 00:54:22,040 --> 00:54:25,360 Speaker 1: and I will guarantee that you, regardless, would have good feelings. 1202 00:54:25,400 --> 00:54:27,239 Speaker 1: If you're drinking this beer sitting out on a beach 1203 00:54:27,280 --> 00:54:30,000 Speaker 1: with your toes in the sand, be sure to check 1204 00:54:30,040 --> 00:54:32,200 Speaker 1: this one out, Joel. That's gonna be it for this episode. 1205 00:54:32,200 --> 00:54:34,839 Speaker 1: Buddy Listeners can find our show notes up on our 1206 00:54:34,840 --> 00:54:36,920 Speaker 1: website at how to money dot com. And do not 1207 00:54:37,000 --> 00:54:39,160 Speaker 1: forget please to sign up for the Hot of Money newsletter, 1208 00:54:39,239 --> 00:54:42,000 Speaker 1: which is rocking every single week. It comes to your 1209 00:54:42,000 --> 00:54:44,399 Speaker 1: inbox tomorrow morning. If you sign up today, you get 1210 00:54:44,400 --> 00:54:47,480 Speaker 1: that newsletter for free tomorrow morning in your inbox. It 1211 00:54:47,680 --> 00:54:50,560 Speaker 1: is a delightful read and you're you're gonna learn something 1212 00:54:50,760 --> 00:54:52,319 Speaker 1: and you're also going to have a laugh, hopefully at 1213 00:54:52,360 --> 00:54:53,680 Speaker 1: the same time. You can you can sign up for 1214 00:54:53,680 --> 00:54:56,439 Speaker 1: that how to money dot com slash newsletter, but Matt, 1215 00:54:56,480 --> 00:54:58,759 Speaker 1: that's gonna do it until next time. Best Friends out, 1216 00:54:58,840 --> 00:55:00,239 Speaker 1: Best friends Out,