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Speaker 1: Hey, ba Faan, Welcome back to Brown Ambition. It's her girl,

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Speaker 1: Mandy Money, and today I've got something a little different,

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Speaker 1: a little special for y'all. It's actually an episode of

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Speaker 1: the Smart Money podcast, which is by my friends over

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Speaker 1: at Nerdwallet. Y'all know they are one of the biggest

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Speaker 1: brands in financial education, and I had the pleasure of

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Speaker 1: hopping on the mic with their host Sean Piles and

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Speaker 1: Elizabeth Ayula earlier this year. We had such a good conversation.

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Speaker 1: We got to talk about the origin of Brown Ambition.

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Speaker 1: We got to talk about how I tenext my salary

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Speaker 1: by quitting my way rich, the power of storytelling in

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Speaker 1: your career, just all of my favorite topics. The conversation

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Speaker 1: is packed with actionable advice that I know will help

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Speaker 1: you level up your career, which is what I am

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Speaker 1: all about, especially if y'all have been feeling stuck, underpaid, undervalued,

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Speaker 1: all the things. Honestly, it was also a good opportunity

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Speaker 1: to share the origin story of Brown Ambition and I

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Speaker 1: talk about how centering voices of people of color in

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Speaker 1: personal finance convers matters so much to me, and I

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Speaker 1: wanted to share this full interview with y'all, because.

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Speaker 2: Y'all are ba fam.

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Speaker 1: You're the reason I do this work, and I think

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Speaker 1: you're going to get a lot out of this conversation.

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Speaker 1: So without further ado, let's jump into my interview with

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Speaker 1: Nerd Wallets Smart Money Podcast.

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Speaker 3: Enjoy Sean, if you could pay yourself any amount of

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Speaker 3: money based on what you think you're worth, how much

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Speaker 3: would it be?

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Speaker 4: This is probably not the answer you want, but the

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Speaker 4: limit does not exist. I tend to think that people

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Speaker 4: are worth more than a dollar amount can capture, so

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Speaker 4: I would say an infinite amount of money.

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Speaker 3: Elizabeth, Well, you could save that for yourself, because I

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Speaker 3: would like to be paid fifty thousand dollars a month,

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Speaker 3: just kidding the wallet. That's fair, all right? So today

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Speaker 3: we're discussing compensation negotiations and also career strategies for an

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Speaker 3: uncertain market.

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Speaker 4: Welcome to nerd Wallets Smart Money Podcast, where you send

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Speaker 4: us your money questions and we answer them with the

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Speaker 4: help of our genius nerds.

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Speaker 3: I'm Sean Piles and I'm Elizabeth Ayola. This episode, we're

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Speaker 3: speaking with a listener about whether they should prioritize contributing

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Speaker 3: to wroth or traditional retirement accounts. But before then, we're

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Speaker 3: gonna chat with Mandy Woodruff Santos from the Brown Ambition

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Speaker 3: podcast about career strategies for an uncertain market and salary negotiations.

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Speaker 3: Now I have to tea Mandy up and let y'all

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Speaker 3: know that she's an award winning career coach, personal finance expert, speaker,

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Speaker 3: and writer.

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Speaker 5: Mandy, Welcome to Smart Money.

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Speaker 2: Can I call myself a NERD?

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Speaker 5: Now? You're an honorary NERD now?

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Speaker 4: Yes?

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Speaker 2: So excited.

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Speaker 1: No, you don't understand personal finance reporter since twenty ten.

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Speaker 1: Like I feel like me and nerd wallet have just

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Speaker 1: like come up together.

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Speaker 5: Yes, it's about time we have you on the podcast.

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Speaker 1: Perfect right, Honestly, I've been waiting. Fifteen years is a

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Speaker 1: long time.

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Speaker 2: Make a girl.

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Speaker 3: Wait, it's fine, So Mandy, we're gonna start with a

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Speaker 3: little ice here so we can.

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Speaker 2: Often rise ourselves.

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Speaker 3: Okay, Sure, if you had to describe the first six

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Speaker 3: months of the year now we were entering June in

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Speaker 3: one word, technically five, I guess what would it be.

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Speaker 2: For six words of this year? Yes, I can't curse.

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Speaker 1: A joy chosen joy, chosen joy, rebellious joy. I started

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Speaker 1: a community garden with my neighbors earlier than we probably

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Speaker 1: should have. We live in New York. Stuff freezes, there's frost,

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Speaker 1: it's cold even in May. And we made this little

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Speaker 1: hotchpodg garden that has just kept growing and every day

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Speaker 1: I just get to put my hands in dirt and

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Speaker 1: no matter what is happening, I have the garden and

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Speaker 1: it's just so therapeutic. So yeah, rebellious joy is what

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Speaker 1: that feels like.

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Speaker 4: Well, you know, I'm a big gardener. I talk about

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Speaker 4: it a lot on the podcast, and it's so important

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Speaker 4: to have a space where you can relax, get your

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Speaker 4: hands a little dirty, and focus on something bigger than yourself,

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Speaker 4: which is your community, your garden, what you're creating and

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Speaker 4: growing in your everyday or if.

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Speaker 1: You're a new Bee gardener like me, it's often smaller

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Speaker 1: than yourself and will remain smaller and might die.

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Speaker 5: But it's all about the process.

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Speaker 2: It's a garden with the lower kagg that is what.

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Speaker 5: I like to call it.

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Speaker 4: Well, Mandy, you are a career and money expert. Talk

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Speaker 4: with us about how you got to where you are today.

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Speaker 1: Oh my goodness, Well, brown ambition, my baby. I started

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Speaker 1: this podcast when I was coming up as a financial journalist.

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Speaker 1: I was a reporter at Business Insider. I was the

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Speaker 1: personal finance editor at Business Insider, and then I moved

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Speaker 1: over to Yahoo Finance, and I just could not create

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Speaker 1: enough content about personal finances for millennials. And I'm a

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Speaker 1: black woman in the business journalism space, and I thought

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Speaker 1: BI was bad in terms of like the number of

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Speaker 1: BI bros That I had to contend with.

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Speaker 5: Yeah, I meaning Business Insider.

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Speaker 1: Business Insider. Yes, I didn't realize it at the time.

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Speaker 1: I thought something was wrong with me. I was like,

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Speaker 1: I don't speak this language. I don't feel like I

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Speaker 1: have a voice that anyone cares to hear. You know,

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Speaker 1: I'm just gonna sit over here and write my stories

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Speaker 1: and not speak up. And by the time I got

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Speaker 1: to Yahoo Finance, I was gaining more confidence about my

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Speaker 1: financial knowledge and all of that. And then what I'm

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Speaker 1: realizing is it's not that something is wrong with me.

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Speaker 1: It's just that the default voice and the default tone

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Speaker 1: and style and personality is just something that as a

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Speaker 1: black girl from Georgia, like I just was not bringing.

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Speaker 1: And I came up with the idea to do brown ambition,

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Speaker 1: and thank goodness, y'ah who said, no, we can't make

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Speaker 1: any money off that. So I started it on my

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Speaker 1: own and Brown Ambition became my side hustle. That is

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Speaker 1: now my main focus. And I'm really privileged and honored

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Speaker 1: to get to serve this audience of women of color

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Speaker 1: and really put us centered.

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Speaker 2: In every conversation about finances.

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Speaker 1: And because I quit six times and ten years and

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Speaker 1: I tenxed my salary from thirty K to three hundred

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Speaker 1: k over that time, I had a lot of tips

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Speaker 1: to share.

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Speaker 4: I'd like to hear a little more about that specific

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Speaker 4: moment where you said, I'm going off on my own.

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Speaker 4: I'm starting Brown Ambition. I'm making this my full time job.

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Speaker 1: It's a choice every day Brown Ambition. Because I'm my

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Speaker 1: own boss. It doesn't have to be my focus. I

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Speaker 1: could be doing other things. I'm working on my first book.

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Speaker 1: I just submitted my manuscript a comp gratulations girl, What

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Speaker 1: a joy for me. It's not so much about I'm

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Speaker 1: going to make Brown Ambition my focus. It's just I

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Speaker 1: am so excited to do Brown Ambition. I'll just keep

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Speaker 1: doing it until the wheels fall off. And the beauty

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Speaker 1: of this platform is that, yes, AD revenue is great,

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Speaker 1: and it's nice to be able to pay my bills

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Speaker 1: with that, but it is another pathway to more opportunities

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Speaker 1: that can also bring in revenue.

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Speaker 3: It's very impressive. How you said you were able to

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Speaker 3: ten x your salary.

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Speaker 5: Is that right?

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Speaker 2: Yeah? Ten x not At one job. I had to

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Speaker 2: work really hard.

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Speaker 1: I had to quit my way rich, which I came

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Speaker 1: up with that expression, and it is really hard to

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Speaker 1: say fourdater quit my way rich. No, But I mean

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Speaker 1: it wasn't some It wasn't like a big master plan

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Speaker 1: I had that said, Okay, I'm just going to keep

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Speaker 1: quitting and moving to new jobs. But I quickly realized

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Speaker 1: I thought I was playing the game well, and I

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Speaker 1: still didn't get the raise that I asked for. When

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Speaker 1: I didn't get the raise, I was like, well, can

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Speaker 1: I ask them an equity please, sir?

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Speaker 2: And it was a no.

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Speaker 1: And I got a really great piece of advice from

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Speaker 1: a mentor of mine.

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Speaker 2: His name is Raymontyer.

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Speaker 1: He gave me one of the best pieces of advice ever,

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Speaker 1: which is that as you are killing it in your

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Speaker 1: current job, always be looking and keeping an eye out

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Speaker 1: for other opportunities. Sometimes you need that additional leverage to

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Speaker 1: get them to give you what you deserve. And so

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Speaker 1: I talk a lot about how I didn't just negotiate

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Speaker 1: to get from thirty K up to three hundred K

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Speaker 1: across six different roles. I also put myself in a

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Speaker 1: position where I never had to apply for those roles.

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Speaker 1: People came to me with opportunities. And that's the secret

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Speaker 1: sauce that I want more and more of us to

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Speaker 1: understand so we can start getting that bag.

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Speaker 3: Well, I'm going to ask you, Mandy, specifically for people

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Speaker 3: who like nugget sized takeaways, how should people navigate compensation negotiations,

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Speaker 3: especially in this economic climate.

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Speaker 1: I think that the economy is always going to be

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Speaker 1: doing whatever or the economy is doing. I know that

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Speaker 1: AI is not even an existential. It's like a real

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Speaker 1: crisis right now, and they're coming for our jobs.

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Speaker 2: I get that.

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Speaker 1: At the same time, you can only control what you

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Speaker 1: can control, right. One of the best nuggets I can

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Speaker 1: give y'all right now is knowledge. You have to know

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Speaker 1: your market value in order to go out and assert

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Speaker 1: your value.

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Speaker 2: Right.

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Speaker 1: So by that, I mean you need to be always

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Speaker 1: looking for new opportunities, taking those calls if you're lucky

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Speaker 1: enough to get them from hiring managers and recruiters and

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Speaker 1: asking them upfront, what is the salary range for this position?

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Speaker 1: Even if you don't want the role, you should still

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Speaker 1: be having that conversation. Another way to get knowledge is

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Speaker 1: to talk to your peers. I made a pact with

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Speaker 1: one of my college pals. We were always going to

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Speaker 1: share what we were earning, what negotiations were like, and

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Speaker 1: help each other. And I made that packed with a

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Speaker 1: few other colleagues and peers over the same period of time,

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Speaker 1: and it just takes away all of that bs. We

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Speaker 1: get scared to talk about compensation with people. You have

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Speaker 1: to like tiptoe around it. You desperately want to know,

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Speaker 1: but you don't ask the question. And once that's sort

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Speaker 1: of taken away and you just have an understanding, like, oh,

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Speaker 1: at this table, we're going to be transparent. It is

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Speaker 1: so helpful because that knowledge is what's going to give

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Speaker 1: you that confidence to go in and ask for what

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Speaker 1: you're worth. Now, the next part is how do you

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Speaker 1: get a job that's actually going to pay you what

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Speaker 1: you're worth? Because knowing it it's not the same as

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Speaker 1: earning it. I was just coaching someone earlier today. She

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Speaker 1: is someone who has not been earning her value for

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Speaker 1: three years. Now she's making fifty K when she should

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Speaker 1: probably be making one hundred and fifty k because she

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Speaker 1: had to take a step back, she was let go,

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Speaker 1: and I had to tell her, like, you're a rare

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Speaker 1: case where I don't think you're going to find your

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Speaker 1: next opportunity by applying and going through an interview process.

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Speaker 1: I said, in your case, going out and creating your

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Speaker 1: own project, your own entrepreneurial endeavor and creating that using

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Speaker 1: every skill set that you're going to bring to the

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Speaker 1: table for the role that you want, and actually demonstrating

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Speaker 1: that in like a market sample, like a proof of

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Speaker 1: work is actually going to give you the edge because

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Speaker 1: it's going to give you an excuse to connect with

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Speaker 1: people and tell them what you're working on. It's going

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Speaker 1: to give you a reason to share what you're working on,

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Speaker 1: and it's just so much more likely that you're going

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Speaker 1: to be found and that people who have opportunities but

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Speaker 1: are not publishing them will come to you because they

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Speaker 1: think of you first.

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Speaker 4: I think we know that throwing out a bunch of

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Speaker 4: job applications online is often not very fruitful. You mentioned

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Speaker 4: how you have been approached by a lot of folks

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Speaker 4: over your career and have found good jobs in that way.

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Speaker 4: For people who maybe aren't getting those calls all the time,

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Speaker 4: how do you think they can begin to drum some

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Speaker 4: of them up? Is it posting on LinkedIn? Is it Instagram?

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Speaker 4: What do you recommend?

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Speaker 1: LinkedIn is great? But I think everyone's got the LinkedIn tip.

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Speaker 1: Now what can you do beyond LinkedIn? Don't get me wrong,

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Speaker 1: it's plenty of y'all who I know know about LinkedIn.

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Speaker 1: When you're on LinkedIn, what are you sharing? You don't

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Speaker 1: need to be sharing what you had for lunch that day.

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Speaker 1: Shout out a teammate, someone on your team who's done

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Speaker 1: something cool. Shout out a company initiative that you had

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Speaker 1: a part of. Of course, shout out if you win

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Speaker 1: an award or if you get a promotion.

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Speaker 2: But day to day, what.

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Speaker 1: Are you excited about? Spotlighting? In terms of your skills,

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Speaker 1: the next thing is get off the internet. People are outside.

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Speaker 1: Now we're outside. I don't think everyone's got the memo

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Speaker 1: since post COVID we are outside.

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Speaker 2: We are a meeting in person.

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Speaker 1: I signed up for my first National Association a Black

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Speaker 1: Journalist convention in six years. I think putting yourself in

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Speaker 1: those spaces. We have to get back out there. I

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Speaker 1: don't care if you're an introvert, but you have to

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Speaker 1: be putting yourselves into a room where you can bump

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Speaker 1: into someone, where you can strike up a conversation, leave

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Speaker 1: an impression. And you just can't get that from the internet, Mandy.

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Speaker 1: Some people may not actually be looking for a new job.

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Speaker 1: They may actually like the job they're at, but just

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Speaker 1: want to be paid. More so, for people who are

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Speaker 1: comfortable where they're at, but want how you're paid, what

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Speaker 1: are some ways that they can negotiate their salary? And

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Speaker 1: then second part is if their employer says, Nope, we're

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Speaker 1: not giving you that extra ten thousand dollars more, are

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Speaker 1: there other things that they can negotiate.

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Speaker 2: Oh?

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Speaker 1: Absolutely. I mean we're at the midyear point right, We're

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Speaker 1: six months into the year. If you have a midyear

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Speaker 1: check in, this is the time. And what I like

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Speaker 1: to say about the midyear check in is for a

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Speaker 1: lot of hiring managers, they're not fully into it. It's

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Speaker 1: not like the end of your check in. However, I

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Speaker 1: would be planting the seeds of I want that promotion,

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Speaker 1: I want that raise right now. I think you need

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Speaker 1: to adjust your expectations for how quickly that can happen.

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Speaker 1: I think the mid year check in is a great

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Speaker 1: time to say to let your hiring your manager know, like,

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Speaker 1: I want this, I'm going to be annoying about it.

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Speaker 2: I'm going to ask again.

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Speaker 1: So by the time they're in Q four of this year,

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Speaker 1: which is when a lot of managers are thinking about

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Speaker 1: what job recks are going to be asking for, what

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Speaker 1: budget they're going to be asking for for promotions, for bonuses,

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Speaker 1: for new talent. That's kind of happening toward the end

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Speaker 1: of the year. And if they remember you back in

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Speaker 1: June being that squeaky wheel and asking for more please,

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Speaker 1: they're just more likely to think of you then. So

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Speaker 1: I think it's important to make your case. Go in

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Speaker 1: there and say, hey, my market value, based on my

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Speaker 1: own research, is actually twenty percent more. What can we

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Speaker 1: do to get me closer to that market rate? I

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Speaker 1: love what I'm doing here. I don't want to go anywhere.

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Speaker 1: Let's make this happen. I want to be sure I'm

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Speaker 1: getting paid commensate with my market value. That's like the

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Speaker 1: bare minimum of what you can do. Even better is

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Speaker 1: to have a competing offer, and that is the ultimate leverage.

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Speaker 1: Of course, you don't want to go into that conversation

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Speaker 1: without thinking about the what ifs. What if they say no,

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Speaker 1: Do I really want to walk away and take this opportunity?

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Speaker 2: Hopefully?

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Speaker 1: Yeah, because loyalty doesn't pay. Loyalty feels good, but it

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Speaker 1: doesn't pay.

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Speaker 4: Something I've been hearing from your advice so far is

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Speaker 4: that it's really important to know your narrative, understand the

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Speaker 4: skills that you bring to the table where you want

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Speaker 4: to go in the story that you're creating, and then

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Speaker 4: also know how to pitch it, whether you're pitching it

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Speaker 4: to someone that you meet at a networking event or

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Speaker 4: your own hiring team. Would you say that's accurate? And

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Speaker 4: is there anything else that I'm missing there?

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Speaker 2: Storytelling is essential.

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Speaker 1: People want to root for someone whose journey they can understand,

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Speaker 1: and I think what trips up or not think? Because

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Speaker 1: I talk to women almost every day about this, We've

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Speaker 1: got to own our story. And I don't mean own

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Speaker 1: and embellish. Don't embellish anything. Just give them the raw,

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Speaker 1: the real, the gritty. You know, tell them where you've been,

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Speaker 1: why you made the choices you did to a certain

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Speaker 1: extent and own it. And I don't care if that

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Speaker 1: means owning a career break for mental health challenges, if

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Speaker 1: it means owning the fact that you took a step

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Speaker 1: back because you were caretaking, like own that all of

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Speaker 1: a sudden.

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Speaker 2: The other person on the side of the table is like, WHOA.

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Speaker 1: I want you to win and it doesn't matter so

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Speaker 1: much about that gap in your resume.

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Speaker 3: Mandy, what is one key takeaway for everyone listening who's

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Speaker 3: like the economy it's killing me. I need more money

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Speaker 3: and I need to ask for more money, whether it's

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Speaker 3: do a new job or my current job. What is

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Speaker 3: the one tip that you have.

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Speaker 2: There's no rules.

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Speaker 1: I don't have to just do one, okay, but the

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Speaker 1: big one is the economy will be shifting and will

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Speaker 1: be changing, and at the end of the day, you

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Speaker 1: have to believe that you have everything that you need

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Speaker 1: exactly where you are, and that there is no like

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Speaker 1: there is no version of events where you do. I

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Speaker 1: don't find an opportunity that works for you. The story

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Speaker 1: just maybe hasn't played out all the way yet, and

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Speaker 1: there may be some chapters you didn't expect to read.

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Speaker 1: There may be some little side quest you have to

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Speaker 1: go on, but it's all part of the journey, and

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Speaker 1: along the way, community will be the thing that is

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Speaker 1: going to separate people who are really struggling from those

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Speaker 1: who are able to bounce back a lot quicker from

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Speaker 1: the side quests that have gone awry.

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Speaker 4: In some ways, that's worth more than a single raise

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Speaker 4: that you're getting, So that'll pay dividend throughout your career.

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Speaker 2: Money's good too, Sean, But yeah.

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Speaker 4: Sure I am pro money. As hosts of this money.

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Speaker 2: Podcast, yes everything all at once.

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Speaker 4: Mandy Woodriff sentos, host of the Brown Ambition Podcast, thank

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Speaker 4: you so much for coming on and talking with us

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Speaker 4: about your journey and your compensation negotiations.

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Speaker 2: Thank you for having me.

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Speaker 3: We're about to get to this episode's money question segment,

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Speaker 3: where we talk with a listener about how to decide

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Speaker 3: between putting money in traditional and raw retirement accounts.

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Speaker 4: But before we get into that, listener, I've got a

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Speaker 4: question for you. What is your money question? That financial

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Speaker 4: thing that keeps you up at night, or that goal

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Speaker 4: you just can't seem to make progress on.

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Speaker 3: Maybe you have some follow up questions for us about

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Speaker 3: how you can get the rays you desire or you

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Speaker 3: want to level up your investing strategy, but aren't sure

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Speaker 3: just how to go about it. Whatever your money question,

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Speaker 3: we nerds are here to help. Leave us a voicemail

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Speaker 3: or text us on the NERD Hotline at nine zero

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Speaker 3: one seven thirty sixty three seventy three. That's nine zero

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Speaker 3: one seven three zero and ERD. You can also email

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Speaker 3: us at podcasts at nerdwallet dot com. All righty, let's

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Speaker 3: get to this episode's money question segment.

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Speaker 2: That's up next.

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Speaker 3: Stay with us.

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Speaker 4: We're back and answering your money questions to help you

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Speaker 4: make smarter financial decisions. This episode, we're joined by Mitch,

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Speaker 4: a listener from California, with some questions about how to

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Speaker 4: balance contributions to roth and traditional retirement accounts. Hey Mitch,

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Speaker 4: Welcome to Smart Money. Hey guys, how you doing great?

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Speaker 4: Good to have you on. Let's start by hearing a

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Speaker 4: little bit of about your finances. Can you talk with

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Speaker 4: us about how you feel things are going, what feels good,

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Speaker 4: what maybe feels challenging.

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Speaker 5: Overall, I feel pretty good.

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Speaker 6: I've been interested in the personal finance space for a

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Speaker 6: long time, so I feel like the basic I have

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Speaker 6: relatively covered. The biggest thing now is I want to

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Speaker 6: try and make sure that I'm optimizing my contributions to

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Speaker 6: my retirement funds. And the biggest aspects within that is

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Speaker 6: I have a four or three B through my company,

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Speaker 6: and they give me the option within the four H

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Speaker 6: three B to contribute to a rough or just a

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Speaker 6: traditional fourrow three B. So that's where I'm getting a

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Speaker 6: little confused as far as what the advantages are on

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Speaker 6: each different side and what the disadvantages might be.

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Speaker 3: Where do you work, Mitch, because I know four three

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Speaker 3: b's I usually designated for nonprofits, right.

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Speaker 6: I work at a medical center called City of Hope

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Speaker 6: in southern California, So we deal mainly with cancers. I

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Speaker 6: deal with leukemia, lymphoma, anything like that. So we do

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Speaker 6: different types of transplants and chemotherapy.

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Speaker 2: So you're a hero basic no no, no, no, no.

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Speaker 5: No, don't be thrust in that on me.

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Speaker 4: I want to hear a little more about your household finances,

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Speaker 4: what's your family situation, Like it's.

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Speaker 6: My wife and I and then we have two relatively

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Speaker 6: newborn twins. They are seven months old, thank you so much.

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Speaker 6: They are finally calming down a little bit. So that's

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Speaker 6: where I'm able to jump back in make sure that

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Speaker 6: we're all set up and everything like that. So my

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Speaker 6: wife and I both work. We're both full time employees.

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Speaker 6: She has her four oh one K and then I

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Speaker 6: have my four or three B. The individual finances and

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Speaker 6: spending obviously has gone up a tiny bit introducing two

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Speaker 6: little family members, but I think that's where the aspect

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Speaker 6: is making sure that we're as set up for the

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Speaker 6: future as we can be, so that that way our

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Speaker 6: kids don't have to worry about us and we can

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Speaker 6: kind of focus on them.

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Speaker 4: And has becoming a parent changed the way that you

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Speaker 4: and your wife talk about money or how you think

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Speaker 4: about it personally.

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Speaker 6: Yeah, I definitely think that it was a little bit

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Speaker 6: easier prior to kids, because I think that it was like,

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Speaker 6: I love finances, I'll just handle it like it's fine.

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Speaker 6: But now if anything were to happen to me, I

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Speaker 6: need to make sure that like she's as prepared as

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Speaker 6: she can be in order to be able to kind

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Speaker 6: of not take over with the finances, but like just

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Speaker 6: kind of understand how the system that like I have works.

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Speaker 6: So it's definitely created a lot more intentional conversations around

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Speaker 6: money and making sure that we kind of understand what's

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Speaker 6: going on, what the goals are, and then if anything

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Speaker 6: were to happen to either of us, how we're protected,

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Speaker 6: and how it kind of goes from there.

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Speaker 3: I love that you and your wife are now thinking

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Speaker 3: about ways to protect your family financially now that you

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Speaker 3: have two little bundles of joy. So what kind of

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Speaker 3: protections have you been thinking about? We know that you're

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Speaker 3: trying to contribute to retirement accounts, are there any other

441
00:19:36,680 --> 00:19:39,840
Speaker 3: kind of financial investments or safeguards that you're putting in place.

442
00:19:39,960 --> 00:19:43,159
Speaker 6: We both have term life insurance, so we both have

443
00:19:43,280 --> 00:19:46,879
Speaker 6: it as like the casual one time salary that's like

444
00:19:46,920 --> 00:19:50,520
Speaker 6: free through our workplaces, and then I put supplemental on

445
00:19:50,680 --> 00:19:53,959
Speaker 6: both of ours through my company, so that we're covered

446
00:19:54,040 --> 00:19:56,320
Speaker 6: up to I think that like I'm up to like

447
00:19:56,359 --> 00:19:59,240
Speaker 6: a mill, and then she's like seven hundred and fifty thousand,

448
00:19:59,600 --> 00:20:01,880
Speaker 6: so either of us pass like it immediately pays off

449
00:20:01,880 --> 00:20:04,560
Speaker 6: our mortgage and then we kind of have that aspect.

450
00:20:04,640 --> 00:20:07,960
Speaker 6: So that's one way, and then we've started five twenty nine,

451
00:20:08,240 --> 00:20:09,880
Speaker 6: and then we just.

452
00:20:09,880 --> 00:20:12,400
Speaker 5: Set up our trust as well, so.

453
00:20:13,160 --> 00:20:18,000
Speaker 6: I think we're relatively covered, but I'm not.

454
00:20:17,680 --> 00:20:17,960
Speaker 5: I'm not.

455
00:20:18,160 --> 00:20:20,439
Speaker 3: I'm not sure that you need us. Man, it sounds

456
00:20:20,480 --> 00:20:22,000
Speaker 3: like you're doing all the things.

457
00:20:22,160 --> 00:20:25,200
Speaker 6: No, no, no, I need somebody to tell me I'm doing it. Okay,

458
00:20:25,280 --> 00:20:26,280
Speaker 6: that's like my big thing.

459
00:20:26,840 --> 00:20:27,679
Speaker 2: Amazing, thank you.

460
00:20:28,200 --> 00:20:31,040
Speaker 4: So much of money conversations and financial planning are just

461
00:20:31,080 --> 00:20:33,480
Speaker 4: getting that gut check and the perspective of someone else.

462
00:20:33,560 --> 00:20:35,720
Speaker 4: So we're happy to provide that. But it does seem

463
00:20:35,760 --> 00:20:38,560
Speaker 4: like you are doing things pretty well overall. One last

464
00:20:38,560 --> 00:20:41,240
Speaker 4: area I want to hear about is emergency savings. Where

465
00:20:41,240 --> 00:20:41,680
Speaker 4: are you there?

466
00:20:41,800 --> 00:20:44,200
Speaker 6: I probably need to get it up a tiny bit more.

467
00:20:44,320 --> 00:20:47,720
Speaker 6: My workplace is really stable from like the standpoint of

468
00:20:47,760 --> 00:20:49,879
Speaker 6: being let go or anything like that. I'm a nurse,

469
00:20:50,000 --> 00:20:52,760
Speaker 6: so it's very difficult for that to happen. I'm also unionized,

470
00:20:52,800 --> 00:20:55,160
Speaker 6: so it's even extra more difficult for.

471
00:20:55,119 --> 00:20:55,639
Speaker 5: That to happen.

472
00:20:55,760 --> 00:20:58,080
Speaker 6: Nice, So we kind of have a I would say

473
00:20:58,280 --> 00:21:00,840
Speaker 6: a four to five month emergency just sitting in our

474
00:21:00,880 --> 00:21:03,800
Speaker 6: high yield. That way, if my wife wasn't able to

475
00:21:03,800 --> 00:21:05,680
Speaker 6: work anymore, if we just kind of need to take

476
00:21:05,680 --> 00:21:07,760
Speaker 6: a break and go down to one income for a minute,

477
00:21:07,840 --> 00:21:10,280
Speaker 6: we have that option at least in the short term.

478
00:21:10,320 --> 00:21:11,200
Speaker 5: To kind of figure that out.

479
00:21:11,440 --> 00:21:13,480
Speaker 4: A general guideline is that if you are in a

480
00:21:13,600 --> 00:21:16,560
Speaker 4: two income household, you can probably get away with a

481
00:21:16,640 --> 00:21:19,439
Speaker 4: three month emergency fund. The fact that you think that

482
00:21:19,520 --> 00:21:21,920
Speaker 4: your wife might stop working for a period of time

483
00:21:22,160 --> 00:21:24,200
Speaker 4: makes me think that you might be okay where you are.

484
00:21:24,200 --> 00:21:25,959
Speaker 4: But if you are a one income household, you might

485
00:21:26,000 --> 00:21:28,080
Speaker 4: want to get that up too, closer to six months,

486
00:21:28,119 --> 00:21:30,480
Speaker 4: just so you have a better cushion. So think about

487
00:21:30,480 --> 00:21:32,120
Speaker 4: that as you and your wife are talking about whether

488
00:21:32,160 --> 00:21:33,879
Speaker 4: she might want to pull back from work, and then

489
00:21:33,880 --> 00:21:35,439
Speaker 4: you might want to save a little bit more if

490
00:21:35,440 --> 00:21:36,119
Speaker 4: you can perfect.

491
00:21:36,119 --> 00:21:38,240
Speaker 5: She's in a tech field, so who knows kind of

492
00:21:38,240 --> 00:21:39,359
Speaker 5: where that's heading.

493
00:21:39,640 --> 00:21:42,480
Speaker 4: Well, let's get into some of your specific questions around

494
00:21:42,520 --> 00:21:45,720
Speaker 4: balancing raw versus traditional with your four h three b

495
00:21:46,200 --> 00:21:48,760
Speaker 4: How have you been saving for retirement thus far? What's

496
00:21:48,800 --> 00:21:49,520
Speaker 4: been your approach?

497
00:21:49,640 --> 00:21:52,760
Speaker 6: I have the automatic contribution set up through my workplace,

498
00:21:52,840 --> 00:21:55,760
Speaker 6: so I've been kind of hovering between. While we were

499
00:21:55,760 --> 00:21:58,159
Speaker 6: pregnant with the babies, I was down like eight percent

500
00:21:58,359 --> 00:21:59,640
Speaker 6: just so that we had a little bit more cash

501
00:21:59,640 --> 00:22:02,160
Speaker 6: on hand, and I'm slowly working back up to trying

502
00:22:02,200 --> 00:22:04,520
Speaker 6: to get both of us back up to the fifteen percent.

503
00:22:04,760 --> 00:22:08,160
Speaker 6: It's not maxing, which is my next goal. I think

504
00:22:08,240 --> 00:22:10,840
Speaker 6: is to max those accounts. But yeah, and then I

505
00:22:11,080 --> 00:22:14,720
Speaker 6: split pretty evenly between the WROTH side and in the

506
00:22:14,760 --> 00:22:17,040
Speaker 6: traditional side. So that's kind of been my approach so far.

507
00:22:17,640 --> 00:22:19,520
Speaker 6: I didn't get enough information about it, and it just

508
00:22:19,600 --> 00:22:21,720
Speaker 6: kind of seemed something I wanted to dig into a

509
00:22:21,720 --> 00:22:22,280
Speaker 6: little bit more.

510
00:22:22,520 --> 00:22:24,919
Speaker 5: Do you get a match from your employer kind of.

511
00:22:24,840 --> 00:22:26,639
Speaker 6: So they do it a little weird. I have a

512
00:22:26,640 --> 00:22:29,760
Speaker 6: four to h one a as well, where they contribute

513
00:22:29,760 --> 00:22:32,520
Speaker 6: to it regardless of what I put in. So right

514
00:22:32,520 --> 00:22:35,440
Speaker 6: now it's two percent. When I hit I think six

515
00:22:35,520 --> 00:22:37,800
Speaker 6: years of service, it will move up to six percent.

516
00:22:38,600 --> 00:22:41,240
Speaker 4: As you're calculating the percentage of your income that you're

517
00:22:41,240 --> 00:22:44,679
Speaker 4: contributing towards retirement accounts, include that two percent match that

518
00:22:44,720 --> 00:22:47,919
Speaker 4: you're getting as you work toward fifteen percent or maxing

519
00:22:47,920 --> 00:22:49,160
Speaker 4: about whatever you would like.

520
00:22:49,119 --> 00:22:51,320
Speaker 5: To have as your goal. Okay, perfect, that's good to know.

521
00:22:51,720 --> 00:22:54,560
Speaker 4: So now let's dig into how you can split your

522
00:22:54,560 --> 00:22:58,680
Speaker 4: money from ROTH versus traditional. I guess one question behind

523
00:22:58,680 --> 00:23:01,639
Speaker 4: this is what are your goals behind splitting it between

524
00:23:01,680 --> 00:23:03,480
Speaker 4: these two different accounts, just because do you think it

525
00:23:03,560 --> 00:23:05,120
Speaker 4: might be a good idea or do you have any

526
00:23:05,440 --> 00:23:06,880
Speaker 4: motivating factor specifically?

527
00:23:06,960 --> 00:23:08,200
Speaker 5: I think it might be a good idea.

528
00:23:08,320 --> 00:23:11,760
Speaker 6: And then also I know that like roths are kind

529
00:23:11,760 --> 00:23:13,879
Speaker 6: of like a powerful tool, and so that's where I

530
00:23:13,920 --> 00:23:16,800
Speaker 6: just don't understand if they are different between the roth

531
00:23:16,840 --> 00:23:18,840
Speaker 6: Ira and the wroth four O three B. I know

532
00:23:18,920 --> 00:23:20,920
Speaker 6: that kind of when it comes to retirement, what I've

533
00:23:20,920 --> 00:23:24,119
Speaker 6: been told at least is to have different buckets that

534
00:23:24,200 --> 00:23:27,520
Speaker 6: I can pull from between taxes, with the traditional being

535
00:23:28,080 --> 00:23:30,840
Speaker 6: take the taxes, then roth being take the taxes now,

536
00:23:31,200 --> 00:23:32,919
Speaker 6: and so trying to separate it to where I have

537
00:23:32,960 --> 00:23:36,000
Speaker 6: a relatively even amount between all of those different buckets

538
00:23:36,000 --> 00:23:37,240
Speaker 6: that I can pull from in retirement.

539
00:23:37,359 --> 00:23:39,560
Speaker 3: So the main difference between a roth ira and a

540
00:23:39,600 --> 00:23:42,159
Speaker 3: four to OZH three B is in the contribution amount,

541
00:23:42,280 --> 00:23:44,760
Speaker 3: So with a four three B or four one K

542
00:23:45,240 --> 00:23:47,840
Speaker 3: you can contribute a lot more than you can usually

543
00:23:47,920 --> 00:23:50,800
Speaker 3: to a regular wroth ira account. And also in the

544
00:23:50,840 --> 00:23:53,159
Speaker 3: investment option, So with the former you tend to have

545
00:23:53,200 --> 00:23:56,439
Speaker 3: more investment options, whereas with the ladder you might have fewer.

546
00:23:56,880 --> 00:23:58,960
Speaker 6: Gotcha, That's what it seems like it comes down to,

547
00:23:59,080 --> 00:24:02,960
Speaker 6: is like the investment options. That's like the main aspect

548
00:24:02,960 --> 00:24:05,600
Speaker 6: of my question is my Wroth four O three B

549
00:24:05,760 --> 00:24:08,200
Speaker 6: I can contribute I think it's like twenty something thousand

550
00:24:08,240 --> 00:24:10,600
Speaker 6: compared to a roth ira, which is around seven thousand.

551
00:24:10,680 --> 00:24:13,640
Speaker 6: I think I have pretty good selections when it comes

552
00:24:13,640 --> 00:24:16,800
Speaker 6: to my workplace. I have the target date retirement funds,

553
00:24:17,000 --> 00:24:20,280
Speaker 6: so I feel like it's like a decent idea. And

554
00:24:20,320 --> 00:24:23,080
Speaker 6: then I just don't know if I before I max,

555
00:24:23,800 --> 00:24:25,880
Speaker 6: should I even contribute to a roth ira? Is there

556
00:24:25,920 --> 00:24:29,159
Speaker 6: any aspect of that? Am I missing out on something

557
00:24:29,200 --> 00:24:31,720
Speaker 6: if I don't finish? And then when can I withdraw

558
00:24:31,800 --> 00:24:35,360
Speaker 6: from a roth ira compared to my retirement accounts within

559
00:24:35,400 --> 00:24:37,600
Speaker 6: my employer? So like my four oh three B for.

560
00:24:37,560 --> 00:24:40,840
Speaker 4: Example, So in general, you can pull from your retirement

561
00:24:40,880 --> 00:24:44,320
Speaker 4: accounts a roth ira tax and penalty free when you're

562
00:24:44,359 --> 00:24:47,639
Speaker 4: fifty nine and a half. There are rules around four

563
00:24:47,720 --> 00:24:49,520
Speaker 4: oh three BS and four oh one k is where

564
00:24:49,760 --> 00:24:53,000
Speaker 4: if you retire from that employer, you can withdraw from

565
00:24:53,119 --> 00:24:56,560
Speaker 4: their account at fifty five. So it's a little bit

566
00:24:56,560 --> 00:24:59,440
Speaker 4: more flexible in that regard. But I want to talk

567
00:24:59,440 --> 00:25:02,840
Speaker 4: about contribut to a roth ira specifically for you, because

568
00:25:03,480 --> 00:25:06,480
Speaker 4: a lot of people who are high earners can face

569
00:25:06,600 --> 00:25:09,000
Speaker 4: some limits on what you can contribute if you can

570
00:25:09,119 --> 00:25:11,360
Speaker 4: at all. So you're a nurse, you said that your

571
00:25:11,400 --> 00:25:14,000
Speaker 4: wife works in tech. I'm gathering that you guys are

572
00:25:14,119 --> 00:25:17,439
Speaker 4: probably high earners. What's your household income?

573
00:25:17,880 --> 00:25:20,760
Speaker 5: We're at about two hundred and thirty thousand between the

574
00:25:20,840 --> 00:25:21,160
Speaker 5: two of.

575
00:25:21,160 --> 00:25:25,760
Speaker 4: Us, So for those who are married filing jointly, the

576
00:25:25,800 --> 00:25:29,080
Speaker 4: phase out range for contributing to a roth IRA in

577
00:25:29,119 --> 00:25:31,760
Speaker 4: twenty twenty five is between two hundred and thirty six

578
00:25:31,800 --> 00:25:34,640
Speaker 4: thousand and two hundred and forty six thousand, So you're

579
00:25:34,760 --> 00:25:37,960
Speaker 4: a little close to that, but you're not at it yet.

580
00:25:38,160 --> 00:25:40,680
Speaker 4: Do you anticipate that you might have any other income

581
00:25:40,720 --> 00:25:41,840
Speaker 4: coming your way this year?

582
00:25:42,080 --> 00:25:45,119
Speaker 6: I think that this year I just got my raise,

583
00:25:45,480 --> 00:25:48,000
Speaker 6: and so it might push me a breath that thank you.

584
00:25:48,200 --> 00:25:50,680
Speaker 6: I am an hourly employee and so is my wife.

585
00:25:50,720 --> 00:25:53,160
Speaker 6: Like she works very exact hours compared to mine, which

586
00:25:53,359 --> 00:25:55,960
Speaker 6: I work variable depending if I need to stay over

587
00:25:56,080 --> 00:25:59,479
Speaker 6: or not, so it can fluctuate more higher than lower.

588
00:26:00,080 --> 00:26:02,280
Speaker 6: Feel like I'm going to be flirting with that line

589
00:26:02,359 --> 00:26:05,280
Speaker 6: like you're talking about. That's where it gets a little complicated.

590
00:26:04,760 --> 00:26:05,280
Speaker 5: I think too.

591
00:26:05,920 --> 00:26:10,040
Speaker 4: Unless you are really unhappy with the investment options in

592
00:26:10,200 --> 00:26:12,960
Speaker 4: the wroth for or three B, that might be the

593
00:26:13,160 --> 00:26:16,480
Speaker 4: safer bet for you because you're still getting the after

594
00:26:16,560 --> 00:26:20,239
Speaker 4: tax contributions and then you have a diversified fund to

595
00:26:20,240 --> 00:26:23,760
Speaker 4: pull from in terms of retirement accounts in retirement, though,

596
00:26:24,320 --> 00:26:27,640
Speaker 4: I caution people when they are close to that edge

597
00:26:27,720 --> 00:26:30,120
Speaker 4: just to maybe not play with fire, because you don't

598
00:26:30,160 --> 00:26:32,040
Speaker 4: want to have to do something later on come tax

599
00:26:32,040 --> 00:26:34,399
Speaker 4: season where you have to pull back the amount that

600
00:26:34,440 --> 00:26:37,000
Speaker 4: you took out in the roth IRA or converted. It

601
00:26:37,080 --> 00:26:39,679
Speaker 4: just gets to be a little bit messy. But I

602
00:26:39,720 --> 00:26:42,040
Speaker 4: would like to talk through a little more about how

603
00:26:42,119 --> 00:26:46,080
Speaker 4: much to put into a WROTH account versus a traditional account,

604
00:26:46,080 --> 00:26:48,119
Speaker 4: And there are some questions that can help you decide

605
00:26:48,160 --> 00:26:50,920
Speaker 4: what might be best for you. So one main one

606
00:26:51,080 --> 00:26:55,359
Speaker 4: is do you expect to earn more and be in

607
00:26:55,400 --> 00:27:00,119
Speaker 4: a higher tax bracket later in your career or in retirement.

608
00:27:00,240 --> 00:27:03,760
Speaker 5: Be my individual career or my wife and I combined

609
00:27:04,200 --> 00:27:05,719
Speaker 5: combined and individual.

610
00:27:05,800 --> 00:27:10,240
Speaker 4: But for now, since you're filing jointly considered.

611
00:27:09,240 --> 00:27:13,080
Speaker 6: I'd probably say post like forty forty five, I feel

612
00:27:13,080 --> 00:27:16,560
Speaker 6: like she'll probably stop working, Like our goal is to

613
00:27:16,600 --> 00:27:19,560
Speaker 6: send her into early retirement kind of as soon as

614
00:27:19,600 --> 00:27:22,720
Speaker 6: we can, so I feel like we'll drop off then,

615
00:27:23,240 --> 00:27:25,600
Speaker 6: but for the time being, we're only going up. Like

616
00:27:25,640 --> 00:27:29,200
Speaker 6: I said, I'm unionized, so I have set increases every year,

617
00:27:29,680 --> 00:27:31,840
Speaker 6: so I can kind of map that out generally for

618
00:27:31,920 --> 00:27:33,320
Speaker 6: the next career path.

619
00:27:33,720 --> 00:27:36,960
Speaker 4: So it sounds like you might be in what people

620
00:27:37,000 --> 00:27:38,800
Speaker 4: call your peak earning years.

621
00:27:39,040 --> 00:27:40,600
Speaker 5: I probably define it like that, okay.

622
00:27:40,720 --> 00:27:43,240
Speaker 4: So in general, if you think that you might be

623
00:27:43,359 --> 00:27:47,119
Speaker 4: earning more later or you'll have a higher tax bracket

624
00:27:47,119 --> 00:27:50,480
Speaker 4: in retirement, contributing to a wroth now or prioritizing that

625
00:27:50,480 --> 00:27:52,640
Speaker 4: can be a good idea because you pay income tax

626
00:27:52,680 --> 00:27:54,520
Speaker 4: on the amount that you put into a roth IRA

627
00:27:54,680 --> 00:27:56,960
Speaker 4: at the front, so you would be paying a lower

628
00:27:57,000 --> 00:27:59,600
Speaker 4: tax rate on the contributions now versus what you would pay.

629
00:28:00,640 --> 00:28:03,680
Speaker 4: So then a traditional is often better when you are

630
00:28:03,760 --> 00:28:07,000
Speaker 4: in your peak earning years because if you are earning

631
00:28:07,000 --> 00:28:09,800
Speaker 4: the most that you may ever earn, you're also likely

632
00:28:09,880 --> 00:28:12,080
Speaker 4: being taxed at the highest rate you may ever be

633
00:28:12,200 --> 00:28:15,560
Speaker 4: taxed at. So in that case, saving for retirement in

634
00:28:15,600 --> 00:28:18,080
Speaker 4: pre tax accounts like a traditional four H three B

635
00:28:18,400 --> 00:28:21,280
Speaker 4: or traditional IRA or four oh one K can be

636
00:28:21,320 --> 00:28:24,600
Speaker 4: a better option because that helps you lower your taxable income.

637
00:28:25,359 --> 00:28:27,960
Speaker 4: You really just are getting a better tax break from

638
00:28:28,080 --> 00:28:31,360
Speaker 4: those pre tax contributions, and that is a big thing

639
00:28:31,400 --> 00:28:32,400
Speaker 4: to consider.

640
00:28:32,080 --> 00:28:35,240
Speaker 6: That definitely makes sense. Would it be worth it still

641
00:28:35,320 --> 00:28:37,840
Speaker 6: to break it up a tiny bit? It seems like

642
00:28:38,040 --> 00:28:41,360
Speaker 6: the traditional might be the best option for me as

643
00:28:41,720 --> 00:28:44,520
Speaker 6: what we are describing as like my highest earning years

644
00:28:44,560 --> 00:28:48,520
Speaker 6: now from a financial combined income perspective, would it be

645
00:28:48,520 --> 00:28:51,280
Speaker 6: worth it still to maybe change the split like seventy

646
00:28:51,320 --> 00:28:52,120
Speaker 6: five twenty five.

647
00:28:52,760 --> 00:28:56,440
Speaker 4: That's about how I do it myself, because I am

648
00:28:56,960 --> 00:28:59,680
Speaker 4: what people may consider is in my peak earning years too.

649
00:28:59,760 --> 00:29:03,520
Speaker 4: But I want to have tax diversification, and that is

650
00:29:03,560 --> 00:29:06,360
Speaker 4: what contributing to a wroth and traditional gives.

651
00:29:06,080 --> 00:29:06,920
Speaker 5: You as well.

652
00:29:07,520 --> 00:29:11,200
Speaker 4: So how exactly you split that is up to you,

653
00:29:11,400 --> 00:29:14,840
Speaker 4: and there isn't a precise, one size fits all formula.

654
00:29:15,320 --> 00:29:19,479
Speaker 4: I do about seventy five percent traditional twenty five percent wroth,

655
00:29:20,080 --> 00:29:24,959
Speaker 4: and that just helps me hedge against future tax increases

656
00:29:25,040 --> 00:29:29,280
Speaker 4: because historically tax rates are pretty low right now, and

657
00:29:29,760 --> 00:29:31,920
Speaker 4: we have quite the blooming national deficit.

658
00:29:31,920 --> 00:29:34,240
Speaker 5: We may need to raise taxes later on to cover this.

659
00:29:34,720 --> 00:29:38,360
Speaker 4: So contributing to a roth while you're also doing traditional

660
00:29:38,520 --> 00:29:42,520
Speaker 4: can help you sort of hedge your retirement vets in

661
00:29:42,560 --> 00:29:42,880
Speaker 4: a way.

662
00:29:43,000 --> 00:29:46,120
Speaker 3: Gotcha, I also split mine, so I have some going

663
00:29:46,200 --> 00:29:49,040
Speaker 3: to a wroth and some going to a traditional and

664
00:29:49,160 --> 00:29:51,800
Speaker 3: I think as much as the numbers matter, it also

665
00:29:51,920 --> 00:29:54,760
Speaker 3: maybe matters when you want to pay your taxes. And

666
00:29:54,800 --> 00:29:57,920
Speaker 3: I know that when I am sipping Margarita's. When I'm retired,

667
00:29:58,000 --> 00:29:59,680
Speaker 3: I don't want to have to worry about paying Uncle

668
00:29:59,720 --> 00:30:02,720
Speaker 3: Sam any taxes. So I like roths for that reason.

669
00:30:02,760 --> 00:30:04,120
Speaker 3: But it's a personal preference.

670
00:30:04,280 --> 00:30:05,920
Speaker 5: And Ozabeth, I have a kind of a question for you.

671
00:30:05,960 --> 00:30:08,000
Speaker 6: I think that you're more I don't know if you

672
00:30:08,040 --> 00:30:13,040
Speaker 6: would define yourself into the fire movement, but I know that, wow,

673
00:30:14,960 --> 00:30:18,320
Speaker 6: And so that's definitely something I've calculated in theory my

674
00:30:18,440 --> 00:30:22,560
Speaker 6: fire number. How can I best set myself up knowing

675
00:30:22,600 --> 00:30:25,520
Speaker 6: that it might be before fifty nine and a half, Like,

676
00:30:25,680 --> 00:30:27,920
Speaker 6: is that where a different type of account would come

677
00:30:27,920 --> 00:30:30,840
Speaker 6: in to where I'm not taking penalties and stuff like that.

678
00:30:31,120 --> 00:30:33,200
Speaker 3: So obviously I can't tell you what to do, but

679
00:30:33,280 --> 00:30:37,000
Speaker 3: I can just share my own personal experience. And while

680
00:30:37,080 --> 00:30:42,000
Speaker 3: I don't think I'm necessarily on track to retire early yet,

681
00:30:42,360 --> 00:30:45,040
Speaker 3: it's an ambitious goal that I do have. And some

682
00:30:45,160 --> 00:30:48,560
Speaker 3: things that I'm doing that anyone can do to diversify is.

683
00:30:48,600 --> 00:30:50,560
Speaker 3: First of all, I have a brokerage account I save

684
00:30:50,600 --> 00:30:53,880
Speaker 3: in as well I also try to live a little frugally.

685
00:30:54,000 --> 00:30:54,400
Speaker 2: I say a.

686
00:30:54,360 --> 00:30:58,360
Speaker 3: Little because I like to shop on Zoro, but I

687
00:30:58,440 --> 00:31:01,040
Speaker 3: do try to keep my expenses way lower than my

688
00:31:01,160 --> 00:31:04,800
Speaker 3: income and just cut out unnecessary expenses. So essentially, those

689
00:31:04,800 --> 00:31:08,080
Speaker 3: are the main things that I do diversify my investments,

690
00:31:08,440 --> 00:31:10,800
Speaker 3: and also the pots that I'm putting my investments in

691
00:31:10,920 --> 00:31:13,640
Speaker 3: and saving aggressively. I think those are like the fundamentals

692
00:31:13,640 --> 00:31:14,000
Speaker 3: of fire.

693
00:31:14,080 --> 00:31:15,400
Speaker 5: Really perfect, appreciate it.

694
00:31:15,480 --> 00:31:15,760
Speaker 1: Thank you.

695
00:31:15,960 --> 00:31:18,360
Speaker 5: Are you contributing to a brokerage account right now? Miss?

696
00:31:18,480 --> 00:31:20,520
Speaker 6: I was, and it was mainly for a new down

697
00:31:20,520 --> 00:31:22,600
Speaker 6: payment for a house. Is kind of the idea. I

698
00:31:22,680 --> 00:31:24,880
Speaker 6: stopped because it's hard to know where we're at with

699
00:31:24,920 --> 00:31:27,000
Speaker 6: our next house and a down payment, so I pulled

700
00:31:27,000 --> 00:31:28,200
Speaker 6: out of it and just put it into the High

701
00:31:28,240 --> 00:31:30,880
Speaker 6: Yeld savings account for now. Didn't take out the contributions,

702
00:31:30,960 --> 00:31:33,840
Speaker 6: but I did just change where I'm contributing, So I'm

703
00:31:33,840 --> 00:31:35,680
Speaker 6: just saving in cash right now to the High Yield.

704
00:31:36,000 --> 00:31:38,120
Speaker 6: That's the only brokerage account that I have set up

705
00:31:38,120 --> 00:31:40,960
Speaker 6: for now, but it might be worth looking into for

706
00:31:41,000 --> 00:31:41,440
Speaker 6: the future.

707
00:31:41,880 --> 00:31:44,320
Speaker 4: Yeah, Well, if you are interested in the fire movement,

708
00:31:44,400 --> 00:31:47,760
Speaker 4: that is a way to save and invest without having

709
00:31:47,760 --> 00:31:49,320
Speaker 4: to deal with a lot of the red tape that

710
00:31:49,400 --> 00:31:53,480
Speaker 4: comes with these tax advantage to count like roth iras

711
00:31:53,520 --> 00:31:55,760
Speaker 4: and four H three p's. They just have a lot

712
00:31:55,800 --> 00:31:58,200
Speaker 4: of very particular rules that you don't want to get

713
00:31:58,200 --> 00:32:01,760
Speaker 4: on the wrong side of. So capital gains on what

714
00:32:01,840 --> 00:32:04,160
Speaker 4: you have in a brokerage account. Is a lot of

715
00:32:04,200 --> 00:32:07,160
Speaker 4: folks who are going to fire out's primary way beyond

716
00:32:07,320 --> 00:32:09,400
Speaker 4: you know, the other standard retirement accounts.

717
00:32:09,560 --> 00:32:11,920
Speaker 3: It's perfect and some people like I hope to do

718
00:32:12,160 --> 00:32:14,000
Speaker 3: because I don't want to be doing absolutely nothing.

719
00:32:14,240 --> 00:32:15,920
Speaker 2: Will still work part time, right, I.

720
00:32:15,840 --> 00:32:18,040
Speaker 6: Don't mind working it. I like the option of not

721
00:32:18,240 --> 00:32:19,680
Speaker 6: having to do it if I don't want to.

722
00:32:20,080 --> 00:32:22,400
Speaker 3: Now we're best these. Now we're best these because you

723
00:32:22,440 --> 00:32:23,160
Speaker 3: get it the.

724
00:32:23,120 --> 00:32:24,800
Speaker 5: Brest to fire. Look at you.

725
00:32:25,200 --> 00:32:27,200
Speaker 2: The show exactly.

726
00:32:28,000 --> 00:32:31,000
Speaker 5: Gad to do my research. Come on, I love it, Mitch.

727
00:32:31,000 --> 00:32:33,000
Speaker 4: I'd like to hear a little more about how your

728
00:32:33,080 --> 00:32:36,320
Speaker 4: wife is saving, how she's thinking about this. Is she

729
00:32:36,400 --> 00:32:38,080
Speaker 4: similar to you or does she have a different approach.

730
00:32:38,200 --> 00:32:40,479
Speaker 5: She's similar to me because I set it up for her.

731
00:32:40,600 --> 00:32:41,760
Speaker 5: It's basically identical.

732
00:32:42,040 --> 00:32:43,960
Speaker 6: But now we'll be able to have a discussion as

733
00:32:44,000 --> 00:32:46,760
Speaker 6: far as what she wants to do and have a

734
00:32:46,760 --> 00:32:48,480
Speaker 6: little bit of a better idea as far as what

735
00:32:48,600 --> 00:32:51,880
Speaker 6: might be best going forward. She doesn't have a contribution

736
00:32:52,040 --> 00:32:55,440
Speaker 6: match anymore. They took that away, and so I don't

737
00:32:55,440 --> 00:32:57,040
Speaker 6: know really what to do with that. If I should

738
00:32:57,160 --> 00:32:59,440
Speaker 6: continue to invest within the four oh one K like

739
00:32:59,640 --> 00:33:02,000
Speaker 6: I want to invest, it's just where and if it

740
00:33:02,000 --> 00:33:03,800
Speaker 6: should be with the company or not with.

741
00:33:03,840 --> 00:33:06,680
Speaker 4: Your wife's four one ye yeah, yeah, yeah. Again, you're

742
00:33:06,720 --> 00:33:09,520
Speaker 4: getting a great tax advantage by reducing your taxable income

743
00:33:09,520 --> 00:33:12,080
Speaker 4: by putting money into it, So even if you aren't

744
00:33:12,120 --> 00:33:15,480
Speaker 4: getting a match, it's still really helpful to be using

745
00:33:15,520 --> 00:33:18,520
Speaker 4: this account that you have access to. Many people who

746
00:33:18,880 --> 00:33:21,960
Speaker 4: don't have that opportunity are really struggling to save enough

747
00:33:22,000 --> 00:33:25,840
Speaker 4: for retirement because, as you mentioned before, the contribution amount

748
00:33:26,000 --> 00:33:29,000
Speaker 4: is I believe in twenty twenty five, it's twenty three

749
00:33:29,400 --> 00:33:32,200
Speaker 4: five hundred dollars that you can put in on your own.

750
00:33:32,400 --> 00:33:36,200
Speaker 4: That is much higher than the seven thousand that you

751
00:33:36,200 --> 00:33:37,880
Speaker 4: can put into a roth ira, and those are both

752
00:33:37,880 --> 00:33:40,400
Speaker 4: the limits for those who are under fifty. So think

753
00:33:40,400 --> 00:33:42,760
Speaker 4: about how you can maximize the amount that you're putting

754
00:33:42,800 --> 00:33:43,800
Speaker 4: in given what's.

755
00:33:43,640 --> 00:33:45,200
Speaker 5: Available to you. Makes sense.

756
00:33:45,720 --> 00:33:47,400
Speaker 4: One last thing I wanted to throw in as it

757
00:33:47,440 --> 00:33:50,360
Speaker 4: relates to your wife's retirement contributions amount as she thinks

758
00:33:50,360 --> 00:33:52,360
Speaker 4: about different accounts that are available to her since she

759
00:33:52,440 --> 00:33:56,520
Speaker 4: doesn't have an employee match, some financial advisors will suggest

760
00:33:56,600 --> 00:33:59,520
Speaker 4: that folks contribute to their employee retirement account enough to

761
00:33:59,520 --> 00:34:01,360
Speaker 4: get that match, which obviously it is not an option

762
00:34:01,480 --> 00:34:04,560
Speaker 4: for your wife. Then go to contributing to an IRA

763
00:34:04,680 --> 00:34:07,440
Speaker 4: and up to max it out, and then go to

764
00:34:07,800 --> 00:34:10,359
Speaker 4: an HSA if they have access to that, and then

765
00:34:10,440 --> 00:34:13,480
Speaker 4: return to their employer's plan and then work on maxing

766
00:34:13,520 --> 00:34:13,919
Speaker 4: that out.

767
00:34:14,280 --> 00:34:16,680
Speaker 5: Do you guys have hsas that you're contributing to.

768
00:34:17,080 --> 00:34:20,120
Speaker 6: We just did her elections and so it starts in

769
00:34:20,200 --> 00:34:22,399
Speaker 6: June and my son has a procedure on June third,

770
00:34:22,520 --> 00:34:24,719
Speaker 6: So I wanted to play it safe and we didn't

771
00:34:24,760 --> 00:34:27,400
Speaker 6: know how much with a high deductible plan that would cost.

772
00:34:27,840 --> 00:34:31,120
Speaker 6: So next year our plan it does have the option

773
00:34:31,239 --> 00:34:33,839
Speaker 6: to drop down to where we do have the eligibility

774
00:34:33,840 --> 00:34:35,839
Speaker 6: for an HSA, but we won't do that until next

775
00:34:35,920 --> 00:34:36,680
Speaker 6: year unfortunately.

776
00:34:36,840 --> 00:34:38,600
Speaker 4: Well, there are trade offs that come with having a

777
00:34:38,640 --> 00:34:41,640
Speaker 4: high deductible health care plan and an HSA, So consider

778
00:34:41,680 --> 00:34:43,520
Speaker 4: all of the health expenses that you and your family

779
00:34:43,600 --> 00:34:47,319
Speaker 4: might have and see what might be most advantageous to you. Well, Mitch,

780
00:34:47,360 --> 00:34:50,400
Speaker 4: we've run through a lot around retirement savings and different

781
00:34:50,440 --> 00:34:53,160
Speaker 4: options that you have. How are you feeling now and

782
00:34:53,200 --> 00:34:54,400
Speaker 4: what do you think you might do next?

783
00:34:54,520 --> 00:34:55,120
Speaker 5: I feel good.

784
00:34:55,680 --> 00:34:57,680
Speaker 6: I think it's always nice to get a little bit

785
00:34:57,680 --> 00:35:00,960
Speaker 6: of reassurance is definitely my big thing. And then just

786
00:35:01,040 --> 00:35:05,200
Speaker 6: with the aspect of potentially changing my split from fifty

787
00:35:05,200 --> 00:35:07,520
Speaker 6: to fifty between traditional and roth and potentially moving in

788
00:35:07,560 --> 00:35:10,520
Speaker 6: a little bit more towards traditional and understanding why that

789
00:35:10,560 --> 00:35:12,800
Speaker 6: would benefit me compared to just like shooting in the

790
00:35:12,840 --> 00:35:15,239
Speaker 6: dark and just kind of not fully understanding.

791
00:35:15,480 --> 00:35:17,640
Speaker 4: Well, thanks for coming on and chatting with us, sharing

792
00:35:17,680 --> 00:35:19,839
Speaker 4: your story a bit. We're really excited for you and

793
00:35:19,880 --> 00:35:22,600
Speaker 4: your young family. Keep us updated on how things go

794
00:35:22,640 --> 00:35:22,880
Speaker 4: for you.

795
00:35:22,920 --> 00:35:24,400
Speaker 5: Thank you so much. I appreciate you guys.

796
00:35:24,280 --> 00:35:27,520
Speaker 3: This time, and that's all we have for this episode.

797
00:35:27,840 --> 00:35:31,480
Speaker 3: Remember listener that we're here to answer your money questions,

798
00:35:31,840 --> 00:35:34,000
Speaker 3: So turn to the nerds and callers. Text us your

799
00:35:34,040 --> 00:35:36,920
Speaker 3: questions at nine zero one seven three zero six three

800
00:35:37,000 --> 00:35:41,160
Speaker 3: seven three. That's nine zero one seven three zero n EERD.

801
00:35:41,640 --> 00:35:44,600
Speaker 3: You can also send us an email at podcasts at

802
00:35:44,640 --> 00:35:45,920
Speaker 3: nerdwallet dot com.

803
00:35:46,239 --> 00:35:47,960
Speaker 4: Join us next time to hear about how you can

804
00:35:47,960 --> 00:35:51,040
Speaker 4: get your credit back on track after some missteps. Follow

805
00:35:51,120 --> 00:35:54,720
Speaker 4: Smart Money on your favorite podcast app including Spotify, Apple Podcast,

806
00:35:54,800 --> 00:35:58,719
Speaker 4: and iHeartRadio to automatically download new episodes. And if you're

807
00:35:58,719 --> 00:36:01,560
Speaker 4: listening on Spotify, drop it's a comment right on the platform.

808
00:36:01,880 --> 00:36:05,000
Speaker 3: And here's our brief disclaimer. We are not your financial

809
00:36:05,120 --> 00:36:09,240
Speaker 3: or investment advisors. This nutty information is provided for general,

810
00:36:09,360 --> 00:36:12,840
Speaker 3: educational and entertainment purposes and it may not apply to

811
00:36:12,880 --> 00:36:14,440
Speaker 3: your specific circumstances.

812
00:36:15,000 --> 00:36:18,600
Speaker 4: This episode was produced by Testigland. Hillary Georgie helped was editing,

813
00:36:18,800 --> 00:36:21,440
Speaker 4: Nick Karrisimi Mixer Audio. And a big thank you to

814
00:36:21,480 --> 00:36:23,200
Speaker 4: Nerd Walt's editors for all their help.

815
00:36:23,520 --> 00:36:37,839
Speaker 3: And with that said, until next time, turn to the nerds.

816
00:36:39,400 --> 00:36:41,920
Speaker 1: Hey ba, fam, let's be real for a second, and

817
00:36:42,000 --> 00:36:44,080
Speaker 1: y'all know I keep it a book. The job market

818
00:36:44,120 --> 00:36:47,520
Speaker 1: in twenty twenty five has been brutal, no, not brutal, trash,

819
00:36:47,880 --> 00:36:51,360
Speaker 1: especially for women of color. Over three hundred thousand of

820
00:36:51,400 --> 00:36:54,480
Speaker 1: us have disappeared from the workforce this year alone, and

821
00:36:54,600 --> 00:36:59,680
Speaker 1: not by choice, but because of layoffs, disappearing DEI programs,

822
00:36:59,760 --> 00:37:03,400
Speaker 1: and stagnant wages that keep cutting us out of opportunity.

823
00:37:03,760 --> 00:37:05,640
Speaker 1: I was just talking to a woman and she's like,

824
00:37:05,680 --> 00:37:07,480
Speaker 1: what am I going to do? They're making me come

825
00:37:07,520 --> 00:37:11,280
Speaker 1: back to office full time come January, five days a week.

826
00:37:11,560 --> 00:37:13,880
Speaker 1: My whole life has been built around working remotely for

827
00:37:13,920 --> 00:37:16,840
Speaker 1: the past four or five years. How am I supposed

828
00:37:16,840 --> 00:37:19,520
Speaker 1: to act like? This is basically them telling me it's

829
00:37:19,520 --> 00:37:22,799
Speaker 1: time to go. Our unemployment rate has jumped to over

830
00:37:22,960 --> 00:37:27,239
Speaker 1: seven percent, while our pay gap continues to widen. I

831
00:37:27,280 --> 00:37:29,400
Speaker 1: know all of that sounds dire, but here's what I

832
00:37:29,400 --> 00:37:31,680
Speaker 1: want y'all to know. You do not have to wait

833
00:37:31,760 --> 00:37:34,800
Speaker 1: for the system to save you. We can build power

834
00:37:34,920 --> 00:37:37,480
Speaker 1: right now and in fact you, I know you, and

835
00:37:37,560 --> 00:37:40,560
Speaker 1: I believe in myself too. If we are capable of

836
00:37:40,640 --> 00:37:43,719
Speaker 1: learning the skills we need to pivot and to lead

837
00:37:43,760 --> 00:37:47,200
Speaker 1: our careers with intention. Despite all of these headwinds and

838
00:37:47,280 --> 00:37:52,400
Speaker 1: challenges against us, we are bound to succeed these outside forces,

839
00:37:52,440 --> 00:37:54,840
Speaker 1: these things that are outside of our control. It's not

840
00:37:54,920 --> 00:37:57,799
Speaker 1: so much about changing them, it's about changing the way

841
00:37:57,800 --> 00:37:59,760
Speaker 1: that we react to them, the way that we respond

842
00:37:59,800 --> 00:38:03,240
Speaker 1: to them. That's exactly why I created the Mandy money

843
00:38:03,239 --> 00:38:07,279
Speaker 1: Makers Group coaching community. It is a coaching community that

844
00:38:07,400 --> 00:38:10,919
Speaker 1: is built for us by us inside the community. We're

845
00:38:10,960 --> 00:38:13,400
Speaker 1: not just talking about how to negotiate or to how

846
00:38:13,480 --> 00:38:16,160
Speaker 1: to get the job that you want. It's about finding

847
00:38:16,400 --> 00:38:20,360
Speaker 1: purpose in your career. It's about finding communities and others,

848
00:38:20,800 --> 00:38:25,200
Speaker 1: feeling seen, feeling heard, and also having a sounding board

849
00:38:25,280 --> 00:38:28,200
Speaker 1: in a mirror to reflect your own magic, your own

850
00:38:28,239 --> 00:38:32,239
Speaker 1: sparkle right back to yourself. In this community, you'll get

851
00:38:32,280 --> 00:38:34,959
Speaker 1: group coaching led by me, but you also get peer

852
00:38:34,960 --> 00:38:38,759
Speaker 1: to peer accountability with proven tools and resources that can

853
00:38:38,800 --> 00:38:42,080
Speaker 1: help you do what we have always done, this rise

854
00:38:42,760 --> 00:38:45,799
Speaker 1: Even when the odds are stacked against us, despite all

855
00:38:45,880 --> 00:38:50,160
Speaker 1: the challenges, we will rise. If you're interested in joining

856
00:38:50,239 --> 00:38:53,920
Speaker 1: the Mandy money Makers community and having that support to

857
00:38:54,040 --> 00:38:57,080
Speaker 1: bolster you and help you tap back into your magic

858
00:38:57,520 --> 00:38:59,799
Speaker 1: so that you can lead your career with intention and

859
00:39:00,080 --> 00:39:05,200
Speaker 1: heart and your own intuition, trusting that again, please join us.

860
00:39:05,239 --> 00:39:07,960
Speaker 1: You can find information in the show notes of today's

861
00:39:08,000 --> 00:39:12,600
Speaker 1: episodes or go to mandymoney dot com slash community. That's

862
00:39:12,719 --> 00:39:17,279
Speaker 1: Mandy m A n d I money dot com slash community.

863
00:39:17,560 --> 00:39:20,880
Speaker 1: I would love to see y'all there. Enrollment is open,

864
00:39:21,080 --> 00:39:24,800
Speaker 1: so please go check out mandymoney dot com slash community

865
00:39:24,920 --> 00:39:26,800
Speaker 1: today