1 00:00:00,040 --> 00:00:02,960 Speaker 1: Welcome to How the Money. I'm Joel and I am Matt. 2 00:00:03,160 --> 00:00:25,680 Speaker 1: Today we're answering your listener questions. That's right. This is 3 00:00:25,680 --> 00:00:28,240 Speaker 1: an ask Count of Money episode where we tackle and 4 00:00:28,280 --> 00:00:31,080 Speaker 1: we answered listener questions. We've got five great ones today, 5 00:00:31,480 --> 00:00:33,680 Speaker 1: including a listener he's he's wondering what he should be 6 00:00:33,720 --> 00:00:37,120 Speaker 1: doing with some personal loans that he took out in 7 00:00:37,200 --> 00:00:40,199 Speaker 1: order to mind some bitcoin, So that'll be interesting to 8 00:00:40,479 --> 00:00:44,320 Speaker 1: tackle that question. Another listener she is thinking about taking 9 00:00:44,360 --> 00:00:47,400 Speaker 1: on a travel nursing gig in order to double her income. 10 00:00:47,920 --> 00:00:50,080 Speaker 1: And we also have a question from listener who is 11 00:00:50,080 --> 00:00:52,040 Speaker 1: looking at some of the different tax breaks to consider, 12 00:00:52,320 --> 00:00:55,200 Speaker 1: in particular when you are going to start your own business. 13 00:00:55,360 --> 00:00:57,560 Speaker 1: So I'm looking forward to tackling those three plus a 14 00:00:57,600 --> 00:01:00,280 Speaker 1: couple others today and then one of their So know 15 00:01:00,360 --> 00:01:01,720 Speaker 1: the meaning of life, Matt, So you're gonna get to 16 00:01:01,720 --> 00:01:03,480 Speaker 1: that here in just a second. We're excited about, you know, 17 00:01:03,600 --> 00:01:06,039 Speaker 1: just the lighter questions that we have to that we 18 00:01:06,080 --> 00:01:07,600 Speaker 1: all wrestle with. Should just take a minute or two, 19 00:01:07,640 --> 00:01:09,800 Speaker 1: won't take a long but quickly. I wanted to mention 20 00:01:09,920 --> 00:01:12,240 Speaker 1: and I think we talked about this on a Friday 21 00:01:12,280 --> 00:01:15,000 Speaker 1: flight when the news was announced that people are gonna 22 00:01:15,040 --> 00:01:17,880 Speaker 1: be able to start renewing their passports online. That I 23 00:01:17,920 --> 00:01:19,720 Speaker 1: guess it was a few months ago that got released, 24 00:01:19,760 --> 00:01:22,240 Speaker 1: but now it's live and you can officially renew your 25 00:01:22,240 --> 00:01:26,360 Speaker 1: passport online. And we mentioned on a recent episode that 26 00:01:26,400 --> 00:01:28,840 Speaker 1: we're going to be going to Scotland here in like 27 00:01:28,920 --> 00:01:32,000 Speaker 1: shoulder season in May, which we're very excited about. Book 28 00:01:32,040 --> 00:01:34,319 Speaker 1: the tickets and it's gonna be gonna be a great Yeah, 29 00:01:34,319 --> 00:01:37,360 Speaker 1: we're finally taking a trip abroad. This is the first 30 00:01:37,400 --> 00:01:39,560 Speaker 1: time that we've Kate and I have been able to 31 00:01:39,560 --> 00:01:42,120 Speaker 1: travel with you and Emily abroad on a fancy trip 32 00:01:42,240 --> 00:01:46,080 Speaker 1: since before we had kids. So basically it's been virtually 33 00:01:46,120 --> 00:01:48,200 Speaker 1: an entire lifetime, right And so both of our passports 34 00:01:48,240 --> 00:01:52,320 Speaker 1: were expired. Yours sadly you cannot renew Mine was, dude, 35 00:01:52,320 --> 00:01:55,559 Speaker 1: Mine was way expired, Like I think mine expired eight 36 00:01:55,560 --> 00:01:59,280 Speaker 1: months after we got back from Okay, So mine was 37 00:01:59,560 --> 00:02:01,880 Speaker 1: it was really alive. Myself had some years on it 38 00:02:01,920 --> 00:02:05,680 Speaker 1: and it expired, I guess. In so I was able 39 00:02:05,720 --> 00:02:09,120 Speaker 1: to I was able to take advantage of the online 40 00:02:09,200 --> 00:02:12,760 Speaker 1: passport renewal process. It's kind of like I've started the 41 00:02:12,760 --> 00:02:14,519 Speaker 1: process a couple of weeks ago, so hopefully I'm gonna 42 00:02:14,520 --> 00:02:16,360 Speaker 1: get it back in time before we're literally talking about 43 00:02:16,400 --> 00:02:19,639 Speaker 1: this morning. Because you checked years and so it's convenient. 44 00:02:19,680 --> 00:02:21,640 Speaker 1: I guess it's convenient and easy that you can really 45 00:02:21,680 --> 00:02:25,240 Speaker 1: much more convenient, but not if it doesn't mean that 46 00:02:25,320 --> 00:02:27,840 Speaker 1: you your passport doesn't actually get renewed, because didn't you 47 00:02:27,840 --> 00:02:30,359 Speaker 1: say like that it's not even showing that it's been 48 00:02:30,400 --> 00:02:32,880 Speaker 1: being processed. It's supposed to. It says that it's supposed 49 00:02:32,919 --> 00:02:35,160 Speaker 1: to tell me that it's being processed two weeks ago, 50 00:02:35,280 --> 00:02:38,040 Speaker 1: within two weeks, and it's been almost two weeks. So 51 00:02:38,120 --> 00:02:40,880 Speaker 1: I'm hoping that they get their act together and that 52 00:02:40,960 --> 00:02:44,040 Speaker 1: it's not just easy, but that it's also effective. So 53 00:02:44,919 --> 00:02:47,320 Speaker 1: I'll report back, but I would say that then the 54 00:02:47,400 --> 00:02:49,239 Speaker 1: advice for folks would be to make sure you're that 55 00:02:49,280 --> 00:02:51,720 Speaker 1: you're giving yourself plenty of time, plenty in order to 56 00:02:51,840 --> 00:02:54,360 Speaker 1: take advantage of an online renewal like that, because they 57 00:02:54,400 --> 00:02:56,359 Speaker 1: say it's going to be something like nine is weeks, 58 00:02:56,400 --> 00:02:59,240 Speaker 1: but then they also they checked some say it's going 59 00:02:59,320 --> 00:03:01,960 Speaker 1: to be extra weeks or mailing. So literally Kate check 60 00:03:02,000 --> 00:03:04,239 Speaker 1: tourist to check on the status and it was eight 61 00:03:04,240 --> 00:03:06,680 Speaker 1: to eleven weeks. And then they said that's also not 62 00:03:06,720 --> 00:03:09,800 Speaker 1: accounting for mailing it, for shipping it, which could add 63 00:03:09,840 --> 00:03:12,200 Speaker 1: a few weeks. Like that was the language that you used, 64 00:03:12,200 --> 00:03:15,120 Speaker 1: like potentially three weeks the mail? What takes that long 65 00:03:15,160 --> 00:03:16,600 Speaker 1: to you go in the mail? Honestly, Like, dude, if 66 00:03:16,600 --> 00:03:19,359 Speaker 1: you ship media mail, which is like the slowest way 67 00:03:19,360 --> 00:03:23,519 Speaker 1: to ship something that it could still take across the 68 00:03:23,560 --> 00:03:25,680 Speaker 1: country is like eight days. Maybe we're shipping from Georgia 69 00:03:25,720 --> 00:03:28,359 Speaker 1: to Alaska might take like eight days. So to say 70 00:03:28,480 --> 00:03:31,520 Speaker 1: multiple weeks to ship the passport seems ridiculous and absurd. 71 00:03:31,680 --> 00:03:34,880 Speaker 1: And I'm hoping that the US State Department it gets 72 00:03:34,880 --> 00:03:37,240 Speaker 1: my passport to me in time. I feel like I 73 00:03:37,240 --> 00:03:40,840 Speaker 1: planned with enough advanced lead time. But yeah, we'll see 74 00:03:40,840 --> 00:03:44,880 Speaker 1: and and I. But hopefully the online passport renewal is 75 00:03:44,880 --> 00:03:46,720 Speaker 1: a boon for lots of folks if you're playing ahead 76 00:03:46,760 --> 00:03:49,080 Speaker 1: and enough time, just some amount of money, but you 77 00:03:49,160 --> 00:03:50,480 Speaker 1: don't have to wait in lines like you had to 78 00:03:50,520 --> 00:03:52,360 Speaker 1: go and wait in line this morning. I literally went, 79 00:03:52,360 --> 00:03:54,560 Speaker 1: went did that this? So I went last week and 80 00:03:54,600 --> 00:03:56,960 Speaker 1: showed up when they opened, and yeah, there was something 81 00:03:57,000 --> 00:03:59,880 Speaker 1: like fifty people in line, and I was you know, 82 00:04:00,080 --> 00:04:01,360 Speaker 1: came back and you're like, oh, that was quick. I 83 00:04:01,400 --> 00:04:02,920 Speaker 1: was like, well, that's because I turned around and walked 84 00:04:02,960 --> 00:04:05,200 Speaker 1: out because I don't want to stick around for five hours. 85 00:04:05,200 --> 00:04:06,720 Speaker 1: I mean, you do the math, I asked the guy 86 00:04:06,760 --> 00:04:07,920 Speaker 1: at the front of the line, and he's like, yeah, 87 00:04:07,920 --> 00:04:10,840 Speaker 1: it's about ten minutes, like every frenup for every person 88 00:04:10,880 --> 00:04:13,320 Speaker 1: that goes. And I look back and kind of, you know, 89 00:04:13,440 --> 00:04:15,840 Speaker 1: fifty fifty folks. You do the math and you realize 90 00:04:15,880 --> 00:04:18,040 Speaker 1: that folks are going to be there for multiple hours. 91 00:04:18,080 --> 00:04:20,080 Speaker 1: But get there. Yeah. I got there a little bit actually, 92 00:04:20,200 --> 00:04:22,080 Speaker 1: right before they even open this morning, and I was 93 00:04:22,080 --> 00:04:23,720 Speaker 1: in and out of there in like fifteen minutes. So 94 00:04:23,839 --> 00:04:25,559 Speaker 1: you know, that's not bad. That was not bad. Pretty 95 00:04:25,560 --> 00:04:27,280 Speaker 1: too good. All right, let's move on. Matt. Let's mention. 96 00:04:27,360 --> 00:04:29,960 Speaker 1: The beer we're having this one is Lindemann's fram Boi, 97 00:04:30,680 --> 00:04:32,880 Speaker 1: which I can't believe we haven't had on the show before. 98 00:04:32,960 --> 00:04:34,480 Speaker 1: We never had it. I don't know. It's a classic 99 00:04:34,640 --> 00:04:36,640 Speaker 1: raspberry landing. We'll give our thoughts at the end of 100 00:04:36,640 --> 00:04:39,560 Speaker 1: the episode, but uh, for yeah, we're gonna take some 101 00:04:39,600 --> 00:04:41,600 Speaker 1: listener questions here, and if you have a money question 102 00:04:41,640 --> 00:04:43,680 Speaker 1: you want Matt and had a tackle. You can submit 103 00:04:43,720 --> 00:04:45,760 Speaker 1: your own at how the Money dot com slash ask 104 00:04:46,080 --> 00:04:48,440 Speaker 1: It's pretty easy. Just record a voice memo on your phone, 105 00:04:48,480 --> 00:04:50,080 Speaker 1: send it our way, and hopefully we can take it 106 00:04:50,160 --> 00:04:53,120 Speaker 1: on the next ask HTM episode. But Matt, let's get 107 00:04:53,120 --> 00:04:55,880 Speaker 1: you our first question for this one, and this question 108 00:04:55,880 --> 00:04:58,560 Speaker 1: is about paying off a loan that our listener got 109 00:04:58,640 --> 00:05:01,960 Speaker 1: because he was getting into big money. Hi, Matt and Joel, 110 00:05:02,320 --> 00:05:05,320 Speaker 1: this is no in Philadelphia, big fan of the show. 111 00:05:05,720 --> 00:05:07,680 Speaker 1: Thank you so much for all the information you all 112 00:05:07,680 --> 00:05:10,240 Speaker 1: put out there. I have a question about using roth 113 00:05:10,320 --> 00:05:13,480 Speaker 1: Ira contributions to pay down a sixteen percent interst rate 114 00:05:13,520 --> 00:05:16,520 Speaker 1: personal loan. I'm twenty eight years old and at the 115 00:05:16,560 --> 00:05:19,520 Speaker 1: beginning of last year, I foolishly took out about ninety 116 00:05:19,520 --> 00:05:22,440 Speaker 1: thousand dollars in three separate loans to start a bitcoin 117 00:05:22,520 --> 00:05:26,000 Speaker 1: mining business. As an aside, nobody should ever do that. 118 00:05:26,360 --> 00:05:28,680 Speaker 1: It's turned out to be a terrible idea all around. 119 00:05:29,000 --> 00:05:32,160 Speaker 1: Taking out debt for a risky investment is a bad idea, 120 00:05:32,760 --> 00:05:37,520 Speaker 1: as these mining rigs have lost a lot of value already. Anyways, 121 00:05:37,800 --> 00:05:40,960 Speaker 1: I've aggressively paid down one loan that is close to completion. 122 00:05:41,440 --> 00:05:44,520 Speaker 1: Since it's so far down its amortization schedule, the interest 123 00:05:44,600 --> 00:05:47,680 Speaker 1: rate is effectively zero. The second loan has twenty six 124 00:05:47,760 --> 00:05:50,159 Speaker 1: thousand dollars left on it and has a sixteen percent 125 00:05:50,200 --> 00:05:53,080 Speaker 1: interest s right. The third loan has thirty three thousand 126 00:05:53,120 --> 00:05:55,920 Speaker 1: dollars left and a seven point six percent interst rate. 127 00:05:56,480 --> 00:05:59,440 Speaker 1: I currently have twenty seven thousand dollars in roth IRA 128 00:05:59,600 --> 00:06:02,799 Speaker 1: contract visions which I could withdraw tax and penalty free. 129 00:06:03,279 --> 00:06:05,640 Speaker 1: I'm wondering your guys thoughts on withdrawing this money to 130 00:06:05,680 --> 00:06:09,640 Speaker 1: pay off the interest right loan immediately. I want to 131 00:06:09,680 --> 00:06:12,640 Speaker 1: be debt free as I was before making this stupid investment, 132 00:06:13,000 --> 00:06:16,320 Speaker 1: But something about withdrawing from our retirement account, even tax 133 00:06:16,360 --> 00:06:20,120 Speaker 1: and penalty free, feels like a bad idea. Thanks in advance, 134 00:06:20,839 --> 00:06:23,000 Speaker 1: all right, No, uh, thank you for that question. And 135 00:06:23,120 --> 00:06:26,039 Speaker 1: first off, don't beat yourself up too much here. You know, 136 00:06:26,120 --> 00:06:30,240 Speaker 1: it sounds like you've learned a valuable lesson. That's the positive. 137 00:06:30,279 --> 00:06:33,600 Speaker 1: That's that's the silver lining here. Bitcoin mining is not 138 00:06:33,680 --> 00:06:37,039 Speaker 1: going to be your ticket to riches. But keeping shame 139 00:06:37,120 --> 00:06:38,800 Speaker 1: on top of your head like that's not going to 140 00:06:38,920 --> 00:06:41,480 Speaker 1: get this debt paid off any faster. It won't help 141 00:06:41,520 --> 00:06:44,920 Speaker 1: you to make better decisions moving forward. So yeah, it's 142 00:06:44,960 --> 00:06:46,560 Speaker 1: it is important to come up with a plan. I 143 00:06:46,640 --> 00:06:49,599 Speaker 1: definitely do that. Yes, but you know, thrash yourself for 144 00:06:49,839 --> 00:06:52,360 Speaker 1: that prior decision that you made. No way, man, we 145 00:06:52,560 --> 00:06:56,039 Speaker 1: uh just last week we talked with Lindsay Lindsay Brian 146 00:06:56,080 --> 00:06:59,000 Speaker 1: Podvin and she evoked burn A Brown where she talks 147 00:06:59,000 --> 00:07:03,000 Speaker 1: about the difference between shame as well as guilt, and so, 148 00:07:03,120 --> 00:07:07,120 Speaker 1: shame is I am dumb, but guilt is, Oh, I 149 00:07:07,160 --> 00:07:09,480 Speaker 1: made a dumb decision. And I will say no, That's 150 00:07:09,520 --> 00:07:12,280 Speaker 1: totally what I'm hearing in your voice. You're saying that, like, 151 00:07:12,480 --> 00:07:15,400 Speaker 1: you know, I made a unwise investing choice. I would 152 00:07:15,400 --> 00:07:18,000 Speaker 1: do not recommend this, And so we definitely want you 153 00:07:18,080 --> 00:07:20,679 Speaker 1: to continue to focus on that, you know, the actual mistake, 154 00:07:20,720 --> 00:07:23,480 Speaker 1: as opposed to internalizing it. Man, I just need to 155 00:07:23,480 --> 00:07:26,800 Speaker 1: stop talking to I'm not turning into a counselor here, 156 00:07:26,840 --> 00:07:29,200 Speaker 1: but all that to say, no, it sounds like you 157 00:07:29,240 --> 00:07:32,520 Speaker 1: are approaching this mistake in a healthy way. Yeah, agreed. Okay, 158 00:07:32,560 --> 00:07:35,400 Speaker 1: So let's talk about the actual mechanics of what no 159 00:07:35,440 --> 00:07:37,320 Speaker 1: one should do kind of in the aftermath of this 160 00:07:37,400 --> 00:07:39,720 Speaker 1: mistake should he do? That's what he's talking That's what 161 00:07:39,760 --> 00:07:42,880 Speaker 1: he came to how the money for you, the mechanics 162 00:07:42,920 --> 00:07:45,320 Speaker 1: and not the emotions of it. He didn't come for 163 00:07:45,360 --> 00:07:47,280 Speaker 1: you to hand McClean x and have a good cry. 164 00:07:47,320 --> 00:07:49,560 Speaker 1: But like, should he be using that Rath money to 165 00:07:49,560 --> 00:07:53,280 Speaker 1: pay off this debt? Well, this is tough one because 166 00:07:53,440 --> 00:07:55,960 Speaker 1: normally we're not fans of tapping Rath funds until you 167 00:07:56,000 --> 00:07:59,000 Speaker 1: reach retirement age. Even though one of the benefits we 168 00:07:59,040 --> 00:08:01,600 Speaker 1: talk about that raw the accounts have is that they're 169 00:08:01,600 --> 00:08:04,280 Speaker 1: one of the most flexible retirement accounts in existence, right 170 00:08:04,360 --> 00:08:07,040 Speaker 1: that they're not going to penalize you for pulling out 171 00:08:07,240 --> 00:08:10,600 Speaker 1: at least contributions that you've made to that account early. 172 00:08:11,040 --> 00:08:13,520 Speaker 1: So that is one check mark in favor of like boom, 173 00:08:13,640 --> 00:08:16,320 Speaker 1: you can do this without incurring at tax at taxes 174 00:08:16,360 --> 00:08:18,960 Speaker 1: and penalty. And we've talked about how you know, a 175 00:08:19,080 --> 00:08:22,040 Speaker 1: Rath IRA matic can actually function like a backup to 176 00:08:22,120 --> 00:08:26,000 Speaker 1: your emergency fund, so it provides just a second layer 177 00:08:26,040 --> 00:08:29,400 Speaker 1: of defense, which is nice and that's true, but in 178 00:08:29,440 --> 00:08:32,600 Speaker 1: an ideal world those funds would still never get tapped. Right, 179 00:08:32,640 --> 00:08:36,040 Speaker 1: even though this account allows for that flexibility, we would 180 00:08:36,040 --> 00:08:39,679 Speaker 1: still say, man, in the cases, we still don't want 181 00:08:39,679 --> 00:08:42,200 Speaker 1: you to touch the wrath, even those contributions that you 182 00:08:42,559 --> 00:08:45,320 Speaker 1: have access to. But we're talking about a specific situation 183 00:08:45,400 --> 00:08:48,920 Speaker 1: here where Noah has debt that's at a really really 184 00:08:49,000 --> 00:08:51,440 Speaker 1: high interest rate, right, higher than the average rate of 185 00:08:51,440 --> 00:08:53,960 Speaker 1: a turn that you typically see in the market over 186 00:08:54,000 --> 00:08:57,400 Speaker 1: the years. Still, you can't ever get those dollars from 187 00:08:57,440 --> 00:08:59,880 Speaker 1: prior years back into your raths, right, And that's what 188 00:09:00,040 --> 00:09:03,360 Speaker 1: makes this a tough question. Yes, it is a tough one. No, 189 00:09:03,559 --> 00:09:06,160 Speaker 1: the truth is, like, there's not necessarily a right answer here, right, 190 00:09:06,240 --> 00:09:09,440 Speaker 1: Like you could try to rearrange some of this debt, 191 00:09:09,440 --> 00:09:11,880 Speaker 1: Like that's another option I guess to consider. Like, we 192 00:09:11,960 --> 00:09:14,760 Speaker 1: pretty much hate personal loans, but you know, could you 193 00:09:14,840 --> 00:09:17,559 Speaker 1: qualify for one in order to get the right down 194 00:09:18,000 --> 00:09:20,839 Speaker 1: into like say just the single digits, right like seven 195 00:09:20,840 --> 00:09:24,000 Speaker 1: to eight percent? Perhaps that would be way better than 196 00:09:24,120 --> 00:09:27,240 Speaker 1: sixteen percent. And that would also make keeping that money 197 00:09:27,240 --> 00:09:29,640 Speaker 1: in the rath II a the more attractive solution if 198 00:09:29,640 --> 00:09:32,800 Speaker 1: you're able to make that debt look a little less egregious. 199 00:09:33,280 --> 00:09:35,960 Speaker 1: But also a lot of this depends on your timeline here. 200 00:09:36,040 --> 00:09:37,800 Speaker 1: You know how long it's going to take you to 201 00:09:37,840 --> 00:09:40,560 Speaker 1: pay off this debt if you don't tap that wrath, 202 00:09:40,920 --> 00:09:42,880 Speaker 1: if the answer is, you know, maybe a year or two. 203 00:09:43,320 --> 00:09:46,199 Speaker 1: If you are really dedicated, then I would likely if 204 00:09:46,200 --> 00:09:48,200 Speaker 1: it was me, I would probably just pay that debt 205 00:09:48,240 --> 00:09:50,600 Speaker 1: off over time, really get after it. But if it's 206 00:09:50,600 --> 00:09:53,400 Speaker 1: going to take you even longer, if you're talking about 207 00:09:53,480 --> 00:09:55,880 Speaker 1: like three or four plus years, then you know, maybe 208 00:09:55,880 --> 00:09:57,679 Speaker 1: emptying your wrath to to get rid of a debt 209 00:09:58,000 --> 00:10:00,800 Speaker 1: that bad, that actually might make some sense. Yeah, it 210 00:10:00,840 --> 00:10:02,760 Speaker 1: feels like we're hemming and hang here a little bit, Matt, 211 00:10:02,800 --> 00:10:05,520 Speaker 1: and I think for good reason, because, like you said, 212 00:10:05,559 --> 00:10:08,600 Speaker 1: there is no slam dunk right answer here, and like 213 00:10:08,679 --> 00:10:12,600 Speaker 1: this is the definition I would say of being stuck 214 00:10:12,640 --> 00:10:14,360 Speaker 1: between a rock and a hard place. Neither of these 215 00:10:14,360 --> 00:10:17,280 Speaker 1: options is great, uh, you know, pulling a giant chunk 216 00:10:17,280 --> 00:10:19,880 Speaker 1: of change out of those out of that retirement account, 217 00:10:20,720 --> 00:10:23,800 Speaker 1: but keeping that debt on hand isn't ideal either. And 218 00:10:23,840 --> 00:10:25,960 Speaker 1: so I think where eye land though, is that while 219 00:10:26,040 --> 00:10:29,120 Speaker 1: I get the desire to be debt free, I just 220 00:10:29,200 --> 00:10:33,400 Speaker 1: don't want Noah tapping future future funds for himself for 221 00:10:33,520 --> 00:10:35,600 Speaker 1: his you know, first future retirement in order to make 222 00:10:35,640 --> 00:10:38,200 Speaker 1: it happen if he can develop an aggressive plan to 223 00:10:38,200 --> 00:10:40,400 Speaker 1: get that debt paid off. And so those rath funds 224 00:10:40,400 --> 00:10:42,600 Speaker 1: are just so valuable when you allow them to grow 225 00:10:42,679 --> 00:10:45,600 Speaker 1: and continue to grow for the future. And so yeah, no, 226 00:10:45,760 --> 00:10:47,440 Speaker 1: I think that's that's really the ticket here. If you 227 00:10:47,440 --> 00:10:50,080 Speaker 1: can make that debt less bad, if you can accelerate 228 00:10:50,120 --> 00:10:53,400 Speaker 1: payoff while keeping those funds in place, go that route. 229 00:10:53,440 --> 00:10:57,120 Speaker 1: And if that means working extra to increase your income 230 00:10:57,480 --> 00:10:59,960 Speaker 1: so that you can funnel more and more money towards 231 00:11:00,000 --> 00:11:03,040 Speaker 1: that nasty debt, go for it. But um, yeah, or 232 00:11:03,120 --> 00:11:04,679 Speaker 1: like you said, Matt, if you can kind of shift 233 00:11:04,679 --> 00:11:07,280 Speaker 1: the deckchairs deck chairs on this debt and make it 234 00:11:07,880 --> 00:11:11,120 Speaker 1: less bad than it currently is, that's another solution. But yeah, 235 00:11:11,400 --> 00:11:14,400 Speaker 1: I think, um, not like bitcoin laser eyes, but like 236 00:11:14,440 --> 00:11:17,199 Speaker 1: the laser focus that you need to have towards towards 237 00:11:17,200 --> 00:11:20,120 Speaker 1: getting rid of the debt. That's important exactly. Yeah. I 238 00:11:20,120 --> 00:11:23,080 Speaker 1: mean it sounds like dough has already paid down thret dollars, 239 00:11:23,120 --> 00:11:25,880 Speaker 1: which is great. Uh, And so I'd say to continue 240 00:11:25,920 --> 00:11:28,200 Speaker 1: to get after it, right, like, put those payments from 241 00:11:28,240 --> 00:11:30,880 Speaker 1: that first loan that you've already eliminated towards the next 242 00:11:30,880 --> 00:11:34,440 Speaker 1: one that's and by doing that, it like it should 243 00:11:34,440 --> 00:11:37,199 Speaker 1: take less than a year to eliminate that one based 244 00:11:37,200 --> 00:11:38,600 Speaker 1: on the fact that you've already been able to pay 245 00:11:38,600 --> 00:11:40,160 Speaker 1: that first one off, right, Like, you've already been able 246 00:11:40,200 --> 00:11:42,760 Speaker 1: to pay off thirty dollars within the first year, So 247 00:11:43,240 --> 00:11:45,840 Speaker 1: that additional amount, plus how much you were able to 248 00:11:45,880 --> 00:11:49,120 Speaker 1: dedicate towards that should get you even further faster and 249 00:11:49,120 --> 00:11:52,400 Speaker 1: plus like, I do think there's this psychological advantage to 250 00:11:52,480 --> 00:11:55,720 Speaker 1: not tapping those roth contributions as well. Right like you said, Jill, 251 00:11:55,840 --> 00:11:59,040 Speaker 1: you might find yourself working harder in order to earn 252 00:11:59,080 --> 00:12:02,280 Speaker 1: more to eliminate that debt. You might find yourself cutting 253 00:12:02,280 --> 00:12:05,920 Speaker 1: back on your expenses because you're just sick of these 254 00:12:05,960 --> 00:12:08,280 Speaker 1: personal loans and you want to get rid of them. 255 00:12:08,360 --> 00:12:10,640 Speaker 1: So in this way, listen, I'm not by Beyonce tickets 256 00:12:10,679 --> 00:12:13,520 Speaker 1: because I don't want to funnel that fo straight to 257 00:12:13,600 --> 00:12:15,440 Speaker 1: this that I'm doing, say that for the next tour. 258 00:12:15,760 --> 00:12:18,080 Speaker 1: So we want you to harness any frustration that you 259 00:12:18,160 --> 00:12:20,720 Speaker 1: might have and just allow it to spur you on 260 00:12:21,040 --> 00:12:24,080 Speaker 1: to eliminate that debt even more quickly. On one hand, 261 00:12:24,240 --> 00:12:26,280 Speaker 1: you may have thought that, oh, this is just going 262 00:12:26,320 --> 00:12:28,679 Speaker 1: to be a simple math problem, but it's more than 263 00:12:28,760 --> 00:12:32,560 Speaker 1: just math, because on one hand, you're thinking, well, the 264 00:12:32,640 --> 00:12:35,920 Speaker 1: stock market might return more or less. But the fact 265 00:12:35,960 --> 00:12:37,720 Speaker 1: is we don't know what the stock market is going 266 00:12:37,800 --> 00:12:40,640 Speaker 1: to return. And you might be thinking, but simply put, 267 00:12:41,000 --> 00:12:43,559 Speaker 1: by paying this debt off, I will effectively be earning. 268 00:12:44,960 --> 00:12:47,920 Speaker 1: Here's the thing, and I'm not predicting this, but I mean, 269 00:12:47,920 --> 00:12:50,880 Speaker 1: the stock market could also return that this year. Email 270 00:12:50,920 --> 00:12:52,000 Speaker 1: us at the end of the year and maybe we'll 271 00:12:52,000 --> 00:12:54,080 Speaker 1: talk about it. Then we'll see where things land. But 272 00:12:54,440 --> 00:12:56,600 Speaker 1: it also kind of seems like almost an easy way 273 00:12:56,600 --> 00:12:58,079 Speaker 1: out if you were to pull that money out of 274 00:12:58,600 --> 00:13:01,400 Speaker 1: uh your roth ira as opposed like there's a sense 275 00:13:01,440 --> 00:13:03,920 Speaker 1: of relief I think that would arrive by you doing that, 276 00:13:03,960 --> 00:13:07,360 Speaker 1: as opposed to feeling feeling the edge of that debt 277 00:13:07,400 --> 00:13:09,360 Speaker 1: still being there. Um, you don't want to do all 278 00:13:09,400 --> 00:13:11,600 Speaker 1: that edge like that's the part that that you want 279 00:13:11,600 --> 00:13:13,800 Speaker 1: to spur you on in order to make that progress 280 00:13:13,840 --> 00:13:16,199 Speaker 1: even faster. And I think a really probably a small 281 00:13:16,240 --> 00:13:19,960 Speaker 1: point early on this is once you tap retirement accounts 282 00:13:20,000 --> 00:13:22,400 Speaker 1: for the first time, you're probably more likely to do 283 00:13:22,440 --> 00:13:25,000 Speaker 1: it in the future. Right, you're kind of opening the floodgates. 284 00:13:25,080 --> 00:13:28,040 Speaker 1: The psychological element. It's a psychological piece, right, And it's 285 00:13:28,120 --> 00:13:31,720 Speaker 1: it's not that again, ross have that flexibility. It's one 286 00:13:31,720 --> 00:13:33,520 Speaker 1: of the reasons that we love them that you can 287 00:13:33,559 --> 00:13:36,040 Speaker 1: get those contributions if need be, but we still don't 288 00:13:36,040 --> 00:13:37,600 Speaker 1: want you to take them. And it's a weird thing 289 00:13:37,920 --> 00:13:39,360 Speaker 1: that we like that even though we don't want you 290 00:13:39,440 --> 00:13:42,079 Speaker 1: to access it. Like, but it's true. I think if 291 00:13:42,080 --> 00:13:44,840 Speaker 1: you're if you take funds out of our retirement account once, 292 00:13:45,000 --> 00:13:47,080 Speaker 1: my guess is if you look at the statistics, people 293 00:13:47,120 --> 00:13:48,440 Speaker 1: who have done it once are more likely to do 294 00:13:48,480 --> 00:13:51,640 Speaker 1: it again. And so I just yeah, want you to 295 00:13:51,679 --> 00:13:54,160 Speaker 1: avoid that at all costs, no if possible, and come 296 00:13:54,240 --> 00:13:55,760 Speaker 1: up with a plan to get rid of this debt 297 00:13:56,040 --> 00:13:58,920 Speaker 1: um super quick so that you can keep keep your 298 00:13:58,920 --> 00:14:00,880 Speaker 1: wrath money where it is, but you can also be 299 00:14:00,960 --> 00:14:03,160 Speaker 1: rid of this debt in no time. And that's like 300 00:14:03,280 --> 00:14:05,719 Speaker 1: best of both world scenario. Right. But all right, Matt, 301 00:14:05,760 --> 00:14:07,920 Speaker 1: We've got more questions to get to, including one from 302 00:14:07,960 --> 00:14:09,920 Speaker 1: a teacher who says, is it okay for me to 303 00:14:09,920 --> 00:14:12,559 Speaker 1: be a percent invested in stocks? We'll talk about that 304 00:14:12,600 --> 00:14:25,080 Speaker 1: and more right after this. We are back taking listener questions. 305 00:14:25,080 --> 00:14:27,600 Speaker 1: And before we get to that, one from a teacher 306 00:14:27,680 --> 00:14:30,440 Speaker 1: who is wondering how it is that he should be investing. 307 00:14:30,520 --> 00:14:34,200 Speaker 1: Let's hear from a nurse who is considering taking on 308 00:14:34,360 --> 00:14:37,800 Speaker 1: a travel nursing gig. Hey, Matt and Joel. It's Mary 309 00:14:37,880 --> 00:14:40,520 Speaker 1: Lynn from Boise, Idaho. I'm a twenty six year old 310 00:14:40,560 --> 00:14:43,960 Speaker 1: registered nurse and I'm currently in money year six. I 311 00:14:44,000 --> 00:14:47,200 Speaker 1: have a question about low interest rate debt paid down 312 00:14:47,360 --> 00:14:50,720 Speaker 1: versus retirement savings. I'd like to be debt free as 313 00:14:50,760 --> 00:14:53,240 Speaker 1: soon as possible, and my plan is to become a 314 00:14:53,320 --> 00:14:57,120 Speaker 1: travel nurse. I could stay as a local traveler, doubling 315 00:14:57,200 --> 00:15:00,200 Speaker 1: my hourly rate, but I'd have to purchase my own 316 00:15:00,240 --> 00:15:03,560 Speaker 1: health insurance and i'd no longer have access to any 317 00:15:03,600 --> 00:15:08,120 Speaker 1: type of work sponsored retirement account. Another option is working 318 00:15:08,120 --> 00:15:11,200 Speaker 1: with a travel nurse company. They'd pay for my medical 319 00:15:11,280 --> 00:15:13,840 Speaker 1: benefits and I would have access to a four oh 320 00:15:13,920 --> 00:15:17,440 Speaker 1: one K after six months. However, I'd have to travel 321 00:15:18,080 --> 00:15:21,040 Speaker 1: a lot farther away from my home in my community, 322 00:15:21,080 --> 00:15:23,640 Speaker 1: but I could also make a lot more money. I'm 323 00:15:23,720 --> 00:15:26,480 Speaker 1: already maxing out my wrath I ray, but I'd love 324 00:15:26,520 --> 00:15:29,160 Speaker 1: to hear your thoughts on how I can continue to 325 00:15:29,200 --> 00:15:33,960 Speaker 1: invest the minimum of of my income towards retirement. You 326 00:15:34,000 --> 00:15:36,320 Speaker 1: guys definitely need to come to Boise A lot of 327 00:15:36,320 --> 00:15:40,280 Speaker 1: biking and a huge brewery selection. So thanks so much 328 00:15:40,360 --> 00:15:44,080 Speaker 1: for everything you guys do. Oh, Matt, Boise sounds lovely, 329 00:15:44,960 --> 00:15:47,280 Speaker 1: Sure it does. I think that's why everybody's been moving there, right, 330 00:15:47,480 --> 00:15:49,680 Speaker 1: So yeah, that's what's why Kid and I consider moving there, 331 00:15:49,720 --> 00:15:52,320 Speaker 1: even though we've never even been there before. We're just like, man, 332 00:15:52,360 --> 00:15:54,640 Speaker 1: maybe we should be moving to Boise. Ever since I 333 00:15:54,680 --> 00:15:57,600 Speaker 1: realized there's mountains there and it's not just potato farms, Yeah, 334 00:15:57,640 --> 00:15:59,800 Speaker 1: that's when I when I thought to myself, Oh, this 335 00:16:00,040 --> 00:16:01,360 Speaker 1: was like a cool point. I think it's a good town. 336 00:16:01,400 --> 00:16:04,040 Speaker 1: And I've not been either. I've driven through parts of Idaho, 337 00:16:04,160 --> 00:16:06,000 Speaker 1: but I haven't been to Boise, but it's on my list. 338 00:16:06,000 --> 00:16:07,360 Speaker 1: I would love to check it out at some point. 339 00:16:08,000 --> 00:16:10,160 Speaker 1: So Marylynn, thanks for the invite, and we definitely have 340 00:16:10,200 --> 00:16:12,080 Speaker 1: to hit up the breweries if we went to. But 341 00:16:13,160 --> 00:16:15,360 Speaker 1: let's just say congrats to Marry Lynn as well, because 342 00:16:15,840 --> 00:16:18,200 Speaker 1: on being in money gear number six and her mid twenties. 343 00:16:18,760 --> 00:16:20,880 Speaker 1: That is I want to know if I want to 344 00:16:20,920 --> 00:16:23,760 Speaker 1: say a rare feat, but it's it's abnormal, right? Have 345 00:16:23,880 --> 00:16:26,080 Speaker 1: we said the bar too low? Should we make it 346 00:16:26,120 --> 00:16:28,800 Speaker 1: harder to achieve the different way? I don't think so. 347 00:16:28,880 --> 00:16:30,600 Speaker 1: I think it's amazing that some people in their mid 348 00:16:30,600 --> 00:16:32,560 Speaker 1: twenties were able to get to that point. Absolutely, and 349 00:16:32,760 --> 00:16:35,960 Speaker 1: it's it's but it's also just worth noting that it's 350 00:16:36,040 --> 00:16:38,400 Speaker 1: it's not easy, and so for people to get there, 351 00:16:38,400 --> 00:16:41,840 Speaker 1: it's like boom, you deserve mad props. But really that 352 00:16:41,880 --> 00:16:44,280 Speaker 1: means that she doesn't have any high interstat and that 353 00:16:44,320 --> 00:16:47,600 Speaker 1: she's investing at least fifteen of her pay, which is incredible. 354 00:16:47,840 --> 00:16:49,640 Speaker 1: We wanted to keep that up. We want all of 355 00:16:49,640 --> 00:16:52,560 Speaker 1: our listeners really to enjoy that level of savings. But 356 00:16:52,640 --> 00:16:55,680 Speaker 1: every dollar you invest, now, Marylynn, it just means that 357 00:16:55,720 --> 00:16:58,160 Speaker 1: you can relax a little bit more later, which that 358 00:16:58,280 --> 00:17:00,320 Speaker 1: was awesome. Yeah, I mean that's what our and Doc 359 00:17:00,400 --> 00:17:03,360 Speaker 1: g he calls that front loading to sacrifice, and it's 360 00:17:03,440 --> 00:17:06,399 Speaker 1: something that we're fans of. And I'm certainly glad that 361 00:17:06,440 --> 00:17:08,520 Speaker 1: I sucked away more than I think most of my 362 00:17:08,560 --> 00:17:11,560 Speaker 1: peers were sucking way and investing early on, even when 363 00:17:11,600 --> 00:17:15,199 Speaker 1: I was earning a pittally small amount during some of 364 00:17:15,200 --> 00:17:17,800 Speaker 1: those years. Because life it seems to get more expensive 365 00:17:17,840 --> 00:17:20,240 Speaker 1: as you age. I'm not sure if that's inflation. I'm 366 00:17:20,240 --> 00:17:21,879 Speaker 1: sure that has something to do with it, but it 367 00:17:21,960 --> 00:17:25,479 Speaker 1: also has to do with having multiple kids, but finding 368 00:17:25,480 --> 00:17:28,240 Speaker 1: ways to create that breathing room, you know, giving yourself 369 00:17:28,320 --> 00:17:31,040 Speaker 1: more margin now and honestly just going through the practice 370 00:17:31,200 --> 00:17:36,560 Speaker 1: of like just the discipline that comes with spending less money. Um, 371 00:17:36,600 --> 00:17:38,160 Speaker 1: all of those things. I think we'll we'll pay off 372 00:17:38,200 --> 00:17:41,320 Speaker 1: handsomely down the road and it'll just give future you 373 00:17:41,480 --> 00:17:44,680 Speaker 1: even more flexibility. Marilyn. Yeah, and so her question really 374 00:17:44,680 --> 00:17:47,400 Speaker 1: goes beyond just a basic debt payoff and investing scenarios 375 00:17:47,400 --> 00:17:50,480 Speaker 1: that we often get. We're talking more about whether she 376 00:17:50,520 --> 00:17:54,040 Speaker 1: should opt for a position with higher pay and fewer benefits, 377 00:17:54,040 --> 00:17:56,359 Speaker 1: which I think is kind of an interesting tradeoff, an 378 00:17:56,400 --> 00:17:59,880 Speaker 1: interesting question to consider, but that also comes with It's 379 00:18:00,680 --> 00:18:02,960 Speaker 1: again not just a math equation. It comes with significant 380 00:18:03,000 --> 00:18:06,160 Speaker 1: lifestyle trade offs. And so here's the thing, Maryland. Either 381 00:18:06,160 --> 00:18:08,480 Speaker 1: way you go, you're gonna be able to say for retirement, 382 00:18:08,640 --> 00:18:11,280 Speaker 1: you're just gonna have different account options depending on where 383 00:18:11,320 --> 00:18:14,399 Speaker 1: you land. Simplicity is nice. It's nice to have like 384 00:18:14,840 --> 00:18:16,840 Speaker 1: four one K with a match where you can toss 385 00:18:16,880 --> 00:18:19,080 Speaker 1: it in with every paycheck, But whether or not it's 386 00:18:19,080 --> 00:18:21,560 Speaker 1: a four one K offered through your workplace or you're 387 00:18:21,560 --> 00:18:24,960 Speaker 1: contributing to a taxable brokerage account on your own, You're 388 00:18:25,040 --> 00:18:28,919 Speaker 1: you're still not limited to only just the roth limits 389 00:18:28,960 --> 00:18:33,640 Speaker 1: of for this year, even if that account isn't as 390 00:18:33,680 --> 00:18:35,800 Speaker 1: beneficial from a tax standpoint. I just want you to 391 00:18:35,880 --> 00:18:39,000 Speaker 1: know that if you don't have a workplace account at 392 00:18:39,000 --> 00:18:41,560 Speaker 1: your disposal, there's still other ways for you to stock 393 00:18:41,640 --> 00:18:43,960 Speaker 1: money away for your future, even if it's not coming 394 00:18:43,960 --> 00:18:46,119 Speaker 1: from where you work exactly. Yeah, but so let's get 395 00:18:46,200 --> 00:18:48,119 Speaker 1: nerdy with it, right, because then when it comes to 396 00:18:48,480 --> 00:18:51,560 Speaker 1: which travel nursing job you should consider, one approach is 397 00:18:51,600 --> 00:18:54,240 Speaker 1: to run the numbers, and so first check and see 398 00:18:54,359 --> 00:18:57,320 Speaker 1: what it's going to cost you to purchase health insurance 399 00:18:57,359 --> 00:19:00,840 Speaker 1: on your own. You mentioned how that wouldn't be something 400 00:19:00,840 --> 00:19:02,919 Speaker 1: that was offered with the first option, but with the 401 00:19:02,920 --> 00:19:06,200 Speaker 1: second one it would be. There are still some pretty 402 00:19:06,240 --> 00:19:09,359 Speaker 1: generous subsidies from the federal government on some of those 403 00:19:09,400 --> 00:19:11,679 Speaker 1: A C A plans. In this case, it might be 404 00:19:11,680 --> 00:19:14,000 Speaker 1: one of these instances where you feel like it's ah 405 00:19:14,359 --> 00:19:16,560 Speaker 1: because maybe because you haven't checked it up, it feels 406 00:19:16,600 --> 00:19:18,679 Speaker 1: like something that's bigger than it actually is. It looms 407 00:19:18,760 --> 00:19:21,800 Speaker 1: larger than in reality, but you might make out like 408 00:19:21,840 --> 00:19:25,240 Speaker 1: a bandit taking the increased pay with one of those 409 00:19:25,240 --> 00:19:27,840 Speaker 1: two other travelers and companies and then getting your your 410 00:19:27,840 --> 00:19:29,560 Speaker 1: own coverage and paying for it yourself. That's something I 411 00:19:29,600 --> 00:19:33,120 Speaker 1: found out with my first employer. I realized that even 412 00:19:33,160 --> 00:19:34,840 Speaker 1: if I wasn't starting my own company and buying my 413 00:19:34,840 --> 00:19:36,919 Speaker 1: own health insurance, it would have made sense for me 414 00:19:37,000 --> 00:19:39,000 Speaker 1: to drop drop off the group plan because it was 415 00:19:39,320 --> 00:19:42,800 Speaker 1: so stupidly expensive, especially for people who are young and 416 00:19:42,800 --> 00:19:46,840 Speaker 1: in their and healthy. It was cheap back. Oh my gosh. Yes, 417 00:19:47,000 --> 00:19:48,640 Speaker 1: it was a slam It would have been a slam 418 00:19:48,720 --> 00:19:51,040 Speaker 1: dunk decision either way. But you are gonna want to 419 00:19:51,280 --> 00:19:53,840 Speaker 1: run those numbers first, of course, and you could also 420 00:19:53,880 --> 00:19:57,440 Speaker 1: consider a non traditional healthcare plan that isn't actually health 421 00:19:57,480 --> 00:20:01,000 Speaker 1: insurance from one of the different medical share companies. As 422 00:20:01,000 --> 00:20:03,159 Speaker 1: a nurse, maybe this might be more difficult for you 423 00:20:03,200 --> 00:20:06,440 Speaker 1: to do because you are, you know, you're mentally invested 424 00:20:06,480 --> 00:20:08,960 Speaker 1: into the health care industry, and you're gonna say, well, 425 00:20:08,960 --> 00:20:11,000 Speaker 1: that's not health insurance, that's not And it's true, it's 426 00:20:11,000 --> 00:20:14,520 Speaker 1: not actually health insurance technically, but it functions in the 427 00:20:14,560 --> 00:20:16,879 Speaker 1: same way a lot of them do at least. But 428 00:20:17,000 --> 00:20:18,680 Speaker 1: Joe and I, both of our families, that's what we've 429 00:20:18,720 --> 00:20:21,240 Speaker 1: got but those definitely come with trade offs, which is 430 00:20:21,240 --> 00:20:23,359 Speaker 1: why we don't promote them like crazy or anything like that. 431 00:20:23,400 --> 00:20:25,199 Speaker 1: Always happy to talk about them, but we're also not 432 00:20:25,280 --> 00:20:27,879 Speaker 1: like everybody should do this because it's not everybody's solution 433 00:20:27,920 --> 00:20:30,639 Speaker 1: for a lot of people do it exactly. But also 434 00:20:30,720 --> 00:20:33,359 Speaker 1: it makes sense to run the numbers and calculate the 435 00:20:33,400 --> 00:20:37,160 Speaker 1: benefit of the four win K with that second company, 436 00:20:37,200 --> 00:20:39,280 Speaker 1: because like, that's just something else you want to consider, 437 00:20:39,320 --> 00:20:42,680 Speaker 1: because if they have an insane match like some companies offer, 438 00:20:42,840 --> 00:20:45,760 Speaker 1: so for instance, Microsoft, they have a fifty percent match 439 00:20:46,040 --> 00:20:49,160 Speaker 1: that is only limited by I R S contribution limits, 440 00:20:49,280 --> 00:20:51,840 Speaker 1: that would be something that would be important to consider. 441 00:20:52,080 --> 00:20:53,639 Speaker 1: Uh that, of course, you want to keep that in 442 00:20:53,720 --> 00:20:56,160 Speaker 1: mind as you are trying to decide which of those 443 00:20:56,680 --> 00:20:58,600 Speaker 1: two companies that you want to go with. So part 444 00:20:58,640 --> 00:21:01,239 Speaker 1: of it is really of a math consideration. You need 445 00:21:01,280 --> 00:21:03,040 Speaker 1: to say, well, how good are these benefits that are 446 00:21:03,080 --> 00:21:06,400 Speaker 1: being offered, and how cheap will my premiums be through 447 00:21:06,440 --> 00:21:09,399 Speaker 1: this employer and getting health insurance directly through them? And 448 00:21:09,440 --> 00:21:11,119 Speaker 1: how much would I pay if I went directly out 449 00:21:11,160 --> 00:21:13,400 Speaker 1: into the open market. You're gonna want to compare those 450 00:21:13,400 --> 00:21:15,520 Speaker 1: figures because that and then how much is the actual 451 00:21:15,560 --> 00:21:18,360 Speaker 1: salary difference to right That will like tell you a lot. 452 00:21:18,400 --> 00:21:20,679 Speaker 1: But also so much of this comes down to what 453 00:21:20,800 --> 00:21:22,960 Speaker 1: sort of life you want to lead aside from just 454 00:21:22,960 --> 00:21:25,120 Speaker 1: crunching the numbers. So this time you're going to tap 455 00:21:25,119 --> 00:21:29,640 Speaker 1: into the feelings inside of I have feelings too, Matt. Okay, well, 456 00:21:29,680 --> 00:21:31,639 Speaker 1: and you've got ano feelings for the both of us 457 00:21:33,400 --> 00:21:36,320 Speaker 1: and really on the on the nerdy math guy more 458 00:21:36,359 --> 00:21:38,800 Speaker 1: stoic for sure of the two of us. But this 459 00:21:38,880 --> 00:21:41,120 Speaker 1: is something that we all have to consider. And this 460 00:21:41,200 --> 00:21:44,000 Speaker 1: is like what we talked with Abby Davison earlier this year, 461 00:21:44,119 --> 00:21:46,879 Speaker 1: what end of last year about kind of making massive 462 00:21:46,960 --> 00:21:50,360 Speaker 1: life decisions that involve money and how to make those 463 00:21:50,359 --> 00:21:53,320 Speaker 1: decisions well, and of course travel nurses can learn quite 464 00:21:53,320 --> 00:21:55,400 Speaker 1: a bit more than a nurse is just gonna stick 465 00:21:55,440 --> 00:21:58,399 Speaker 1: around in Boise. But then mary Lynn, she's got to 466 00:21:58,440 --> 00:22:01,399 Speaker 1: figure out whether that travel bull is something she wants 467 00:22:01,440 --> 00:22:03,960 Speaker 1: to do, whether you know, is it worth doubling your 468 00:22:03,960 --> 00:22:06,720 Speaker 1: pay for a year or two, or do you want 469 00:22:06,760 --> 00:22:09,080 Speaker 1: to get after it and just like massively increase your 470 00:22:09,160 --> 00:22:12,480 Speaker 1: pursuit of financial independence, or are there big reasons for 471 00:22:12,520 --> 00:22:15,520 Speaker 1: you to stay put, like family, friends, community, Are those 472 00:22:15,560 --> 00:22:17,840 Speaker 1: kind of things really important to you, and you've got 473 00:22:17,880 --> 00:22:20,439 Speaker 1: a really close knit one right there, and you're like, no, 474 00:22:20,720 --> 00:22:23,399 Speaker 1: it's just not worth the extra income. I get that 475 00:22:23,440 --> 00:22:25,359 Speaker 1: those are all the kinds of choices that we have 476 00:22:25,400 --> 00:22:27,240 Speaker 1: to make, and you have to think about it through 477 00:22:27,480 --> 00:22:30,240 Speaker 1: a holistic framework, right, that will give you some clarity. 478 00:22:30,520 --> 00:22:32,359 Speaker 1: And so actually we're gonna send you a copy of 479 00:22:32,359 --> 00:22:35,280 Speaker 1: Abby and Maya's book that that was Money and Loves 480 00:22:35,320 --> 00:22:39,800 Speaker 1: What's called and and so just about love, right exactly. Yeah, 481 00:22:39,800 --> 00:22:42,240 Speaker 1: I thought the title of the book actually didn't describe 482 00:22:42,560 --> 00:22:45,119 Speaker 1: in some ways a lot of the frameworks that they covered, 483 00:22:45,119 --> 00:22:46,840 Speaker 1: because there are a lot of decisions that aren't about 484 00:22:47,200 --> 00:22:49,600 Speaker 1: love necessarily, but they're just the bigger life decisions that 485 00:22:49,640 --> 00:22:52,919 Speaker 1: we make. And so money it's obviously a big one 486 00:22:52,960 --> 00:22:55,000 Speaker 1: of the bigger parts of a lot of these decisions, 487 00:22:55,160 --> 00:22:56,600 Speaker 1: but we've got a lot of other factors that we 488 00:22:56,600 --> 00:22:59,200 Speaker 1: need to consider too. So Maryland, good luck in making 489 00:22:59,240 --> 00:23:00,760 Speaker 1: this call, and will reach out to you and get 490 00:23:00,800 --> 00:23:02,600 Speaker 1: your address. We can send you that book, that's right. 491 00:23:02,680 --> 00:23:04,399 Speaker 1: I don't know. You might be in an airplane, so um, 492 00:23:05,240 --> 00:23:07,040 Speaker 1: we'll figure out where we can send it. But let's 493 00:23:07,080 --> 00:23:09,360 Speaker 1: go ahead and here our next listener questions. This one 494 00:23:09,480 --> 00:23:13,240 Speaker 1: actually comes from a fellow, a t alien, and he's 495 00:23:13,280 --> 00:23:17,040 Speaker 1: asking about how teachers how they should invest. Hey, Joel 496 00:23:17,080 --> 00:23:19,720 Speaker 1: and Matt is Just and Kristen from down the road 497 00:23:19,760 --> 00:23:25,520 Speaker 1: Indicator Georgia. My wife and I are both teachers, and uh, 498 00:23:25,760 --> 00:23:28,080 Speaker 1: this means we have one of the very few remaining 499 00:23:28,119 --> 00:23:32,920 Speaker 1: professions that have a guaranteed pension in retirement and good 500 00:23:32,960 --> 00:23:36,119 Speaker 1: pensions at that. We are in our mid forties and 501 00:23:36,119 --> 00:23:39,480 Speaker 1: well into our career. A hundred percent of our roth 502 00:23:39,600 --> 00:23:44,760 Speaker 1: IRA and brokerage investments are in stocks. We have approximately 503 00:23:44,880 --> 00:23:50,040 Speaker 1: ten in individual stocks and in index funds. I keep 504 00:23:50,040 --> 00:23:53,960 Speaker 1: this allocation with our pensions in mind instead of reallocating 505 00:23:54,040 --> 00:23:56,239 Speaker 1: or buying bond funds. I view our pensions as our 506 00:23:56,280 --> 00:23:59,879 Speaker 1: bonds are a safety net. I keep our investments heavy 507 00:23:59,880 --> 00:24:02,480 Speaker 1: and stocks in order to maximize the growth that they 508 00:24:02,520 --> 00:24:05,359 Speaker 1: can earn us over the next fifteen to twenty years 509 00:24:05,440 --> 00:24:08,159 Speaker 1: or so. What do you all think about this? We 510 00:24:08,160 --> 00:24:11,320 Speaker 1: would love to hear your take when time allows. I 511 00:24:11,359 --> 00:24:13,800 Speaker 1: love the podcast, guys, Matt. I think we can all 512 00:24:13,800 --> 00:24:16,520 Speaker 1: admit that teachers don't get paid as much as they should, 513 00:24:16,840 --> 00:24:20,119 Speaker 1: but they do have additional benefits at least like like 514 00:24:20,200 --> 00:24:23,280 Speaker 1: Jess here, they have pensions in addition to summers off, 515 00:24:23,320 --> 00:24:25,760 Speaker 1: which what's the pension, what's the summer off? What are 516 00:24:25,920 --> 00:24:29,040 Speaker 1: either of those things? I know those sound at least 517 00:24:29,080 --> 00:24:32,280 Speaker 1: like nice perks of the profession. They can often make 518 00:24:32,359 --> 00:24:34,119 Speaker 1: up at least a little bit for that lack of salary. 519 00:24:34,160 --> 00:24:36,000 Speaker 1: And I will say I think the state of Georgia 520 00:24:36,000 --> 00:24:38,440 Speaker 1: we're dedicating a lot more resources to our teachers, So 521 00:24:38,680 --> 00:24:40,800 Speaker 1: Jess should be getting a pay bump as well um 522 00:24:40,880 --> 00:24:44,320 Speaker 1: this year, which is great, but those secondary benefits just 523 00:24:44,680 --> 00:24:47,119 Speaker 1: matter a whole lot. My father in law, he's a teacher, 524 00:24:47,280 --> 00:24:49,560 Speaker 1: and he's able to use some of those weeks off 525 00:24:49,600 --> 00:24:52,000 Speaker 1: one to rest and recuperate, but he also takes on 526 00:24:52,040 --> 00:24:54,320 Speaker 1: some side gigs doing some other stuff using the expertise 527 00:24:54,320 --> 00:24:57,399 Speaker 1: that he's accrued in order to increase his income, which 528 00:24:57,680 --> 00:24:59,919 Speaker 1: which is great. So I think there's options for teachers 529 00:24:59,920 --> 00:25:02,840 Speaker 1: to not just be stuck with the salary that the 530 00:25:02,840 --> 00:25:06,280 Speaker 1: school district's offering. But like, what what should a pension 531 00:25:06,520 --> 00:25:09,160 Speaker 1: like this mean for how teachers invest well? I think 532 00:25:09,240 --> 00:25:12,240 Speaker 1: Jess is on the right track here because because of 533 00:25:12,240 --> 00:25:14,640 Speaker 1: the dependable income basically that he's going to have from 534 00:25:14,640 --> 00:25:18,160 Speaker 1: social Security and from this pension, I think he can 535 00:25:18,480 --> 00:25:21,000 Speaker 1: afford to be more risky with his other investments. Yeah, well, 536 00:25:21,040 --> 00:25:23,560 Speaker 1: and you said risky. We're not talking about being so 537 00:25:23,680 --> 00:25:27,159 Speaker 1: risky that, uh, that you speculate with your investments, right, 538 00:25:27,200 --> 00:25:30,960 Speaker 1: like putting it all into just a raindo crypto coin 539 00:25:31,040 --> 00:25:34,199 Speaker 1: that just got minted, that just got created yesterday. But 540 00:25:34,440 --> 00:25:37,520 Speaker 1: you can't afford to have more stock exposure and less 541 00:25:37,520 --> 00:25:40,960 Speaker 1: bond exposure if that's your jam. And we're definitely fans 542 00:25:40,960 --> 00:25:44,119 Speaker 1: of folks, specifically in the wealth building stage of their lives, 543 00:25:44,359 --> 00:25:47,600 Speaker 1: to have more stock exposure anyway, But you can do 544 00:25:47,680 --> 00:25:50,240 Speaker 1: that with with even more confidence if you have other 545 00:25:50,240 --> 00:25:54,600 Speaker 1: financial instruments in place that provide a massive backstop if 546 00:25:54,600 --> 00:25:57,679 Speaker 1: returns aren't as incredible as you hope. And a pension 547 00:25:57,760 --> 00:26:00,320 Speaker 1: is exactly that meaning that we think that you cannon 548 00:26:00,359 --> 00:26:04,399 Speaker 1: and that you probably should prioritize owning stocks because if 549 00:26:04,480 --> 00:26:07,520 Speaker 1: you know, if the proverbial ish hits the fan, you've 550 00:26:07,560 --> 00:26:10,399 Speaker 1: got that pension money, you've got social security, uh, and 551 00:26:10,440 --> 00:26:13,080 Speaker 1: you can afford to wait things out as stocks and 552 00:26:13,160 --> 00:26:16,880 Speaker 1: as the market recovers. Yeah, especially if I mean so much. 553 00:26:16,880 --> 00:26:18,480 Speaker 1: It depends on how much is the pension going to 554 00:26:18,520 --> 00:26:20,280 Speaker 1: be how much is your social security going to be 555 00:26:20,280 --> 00:26:22,120 Speaker 1: for But for a lot of teachers who teach for 556 00:26:22,200 --> 00:26:25,560 Speaker 1: something like thirty years in a single district, their pension 557 00:26:25,680 --> 00:26:28,720 Speaker 1: and social security is likely to be able to meet 558 00:26:28,760 --> 00:26:31,840 Speaker 1: all their income needs in retirement. And so then you're 559 00:26:31,840 --> 00:26:35,680 Speaker 1: talking about really your investing portfolio, hopefully if you are 560 00:26:36,040 --> 00:26:39,160 Speaker 1: still able to live a frugal existence, being kind of 561 00:26:39,359 --> 00:26:41,520 Speaker 1: a massive cherry on top, right, And that that might 562 00:26:41,560 --> 00:26:43,639 Speaker 1: be the case here for Chess, But I think in 563 00:26:43,680 --> 00:26:45,440 Speaker 1: another part of the equation, so much of this comes 564 00:26:45,480 --> 00:26:48,760 Speaker 1: down to risk tolerance as well. It sounds like just 565 00:26:48,880 --> 00:26:51,120 Speaker 1: doesn't mind this added risk, right, because he's been able 566 00:26:51,160 --> 00:26:54,040 Speaker 1: to d risk in other ways. And it makes me 567 00:26:54,040 --> 00:26:55,920 Speaker 1: think of a front of the show Morgan Household Matt. 568 00:26:55,960 --> 00:26:58,120 Speaker 1: When he came on the podcast, he talked about paying 569 00:26:58,119 --> 00:26:59,879 Speaker 1: off his home, which is not what you and I 570 00:27:00,119 --> 00:27:02,440 Speaker 1: are choosing to do. But he said, I know it's 571 00:27:02,480 --> 00:27:06,640 Speaker 1: not the right financial decision. I know it's not the 572 00:27:06,680 --> 00:27:09,720 Speaker 1: smartest from like a dollars and cents standpoint, but he says, 573 00:27:10,119 --> 00:27:12,200 Speaker 1: if I do this, one, it's gonna help me sleep 574 00:27:12,240 --> 00:27:14,600 Speaker 1: better at night, and two it's gonna make me feel 575 00:27:14,920 --> 00:27:19,600 Speaker 1: way more comfortable having that stock portfolio. That's right, and 576 00:27:19,600 --> 00:27:23,199 Speaker 1: and so yeah, he was essentially training one risk for another. Right. 577 00:27:23,280 --> 00:27:25,600 Speaker 1: Not not having a mortgage payment can allow that kind 578 00:27:25,600 --> 00:27:28,240 Speaker 1: of flexibility. And they're just all sorts of ways that 579 00:27:28,359 --> 00:27:30,600 Speaker 1: we can choose to d risk in one area and 580 00:27:30,640 --> 00:27:32,600 Speaker 1: then take on more risk in another. And that's kind 581 00:27:32,600 --> 00:27:35,879 Speaker 1: of what Jess is doing here. By having two reliable 582 00:27:35,880 --> 00:27:39,360 Speaker 1: sources of monthly income with the pension and social Security, 583 00:27:39,640 --> 00:27:42,240 Speaker 1: he's able to d risk in that area and then 584 00:27:42,320 --> 00:27:45,680 Speaker 1: kind of take more risk in another. Yeah, another way 585 00:27:45,880 --> 00:27:48,480 Speaker 1: you can d risk is just by having a thicker 586 00:27:49,040 --> 00:27:51,560 Speaker 1: financial cushion in place. Right, we're just talking about having 587 00:27:51,840 --> 00:27:54,960 Speaker 1: more money set aside in an emergency fund. But also 588 00:27:55,160 --> 00:27:57,240 Speaker 1: it comes down to the kind of flexibility that you 589 00:27:57,280 --> 00:27:59,600 Speaker 1: have when it comes to your expenses as well, because 590 00:27:59,600 --> 00:28:02,960 Speaker 1: I think as some folks enter there, as they get 591 00:28:02,960 --> 00:28:05,600 Speaker 1: closer to retirement years, they might think, you know, we 592 00:28:05,600 --> 00:28:07,600 Speaker 1: were talking about our trip to to Scotland. There might 593 00:28:07,600 --> 00:28:09,720 Speaker 1: be some folks who are thinking, well, every single year, 594 00:28:09,720 --> 00:28:12,400 Speaker 1: I'm going to take four international trips, like I must 595 00:28:12,520 --> 00:28:15,800 Speaker 1: do that, whereas somebody else might say, you know what, 596 00:28:15,840 --> 00:28:19,040 Speaker 1: that'd be nice, but I would be perfectly content living 597 00:28:19,119 --> 00:28:23,000 Speaker 1: on a quarter of what we're forecasting for us to 598 00:28:23,000 --> 00:28:25,120 Speaker 1: live on. Right, And so if you have the ability 599 00:28:25,200 --> 00:28:27,520 Speaker 1: to to be flexible to for there to be some 600 00:28:27,560 --> 00:28:30,000 Speaker 1: give and take, uh, and if you will be able 601 00:28:30,040 --> 00:28:32,240 Speaker 1: to not only survive, but just to live a pretty 602 00:28:32,320 --> 00:28:34,680 Speaker 1: dang happy life, that's another way that you are able 603 00:28:34,720 --> 00:28:37,800 Speaker 1: to reduce the amount of risk in your life by 604 00:28:37,840 --> 00:28:39,800 Speaker 1: not altering much now on the front end what you 605 00:28:39,800 --> 00:28:43,320 Speaker 1: can still continue to invest aggressively. But your life may 606 00:28:43,320 --> 00:28:45,680 Speaker 1: not look exactly like you're planning for it to look. 607 00:28:45,920 --> 00:28:48,280 Speaker 1: And that's why so many answers to questions like this, 608 00:28:48,520 --> 00:28:50,760 Speaker 1: it's hard to get a lot of the questions that 609 00:28:50,800 --> 00:28:53,520 Speaker 1: we get. We try to give the principles instead of like, 610 00:28:53,640 --> 00:28:56,200 Speaker 1: here's exactly what you should do in your situation, because 611 00:28:56,200 --> 00:28:58,760 Speaker 1: we don't know the full extent to just a situation. 612 00:28:58,840 --> 00:29:01,600 Speaker 1: Let's say he alshow has a fifteen year mortgage on 613 00:29:01,640 --> 00:29:03,360 Speaker 1: his home and it's going to be paid off by 614 00:29:03,400 --> 00:29:05,880 Speaker 1: the time. That gives him an even greater reason to 615 00:29:06,000 --> 00:29:09,000 Speaker 1: invest more in stocks. He has more risk that he 616 00:29:09,000 --> 00:29:11,960 Speaker 1: can take on. So, yeah, what's happening when it comes 617 00:29:11,960 --> 00:29:13,920 Speaker 1: to your risk level in other areas of your life? 618 00:29:14,240 --> 00:29:16,360 Speaker 1: Not like, are you jumping out of airplanes and going skydiving. 619 00:29:16,400 --> 00:29:18,239 Speaker 1: That's not what I'm talking about, but like, where are 620 00:29:18,280 --> 00:29:20,040 Speaker 1: you taking on risk in your financial life and where 621 00:29:20,040 --> 00:29:22,280 Speaker 1: are you de risking? Those are important questions and what 622 00:29:22,320 --> 00:29:25,560 Speaker 1: it is that you're comfortable with, right because like, simultaneously, 623 00:29:25,600 --> 00:29:28,040 Speaker 1: he could have just taken out a brand new thirty 624 00:29:28,120 --> 00:29:30,640 Speaker 1: year mortgage on a pretty expensive house at a not 625 00:29:30,800 --> 00:29:33,640 Speaker 1: great rate historically speaking over the past years, a brand 626 00:29:33,640 --> 00:29:36,160 Speaker 1: new for runner that cost or something, you know, But 627 00:29:36,280 --> 00:29:39,360 Speaker 1: that being said, he might feel completely comfortable with that personally, 628 00:29:39,440 --> 00:29:42,160 Speaker 1: like himself, And so I think that's important to There's 629 00:29:42,160 --> 00:29:44,120 Speaker 1: a lot of factors here to consider, but ultimately it 630 00:29:44,160 --> 00:29:46,480 Speaker 1: does come down to how you feel as an individual 631 00:29:46,520 --> 00:29:48,600 Speaker 1: with the risk that you've taken on. And actually, since 632 00:29:48,640 --> 00:29:50,080 Speaker 1: you know we're talking about you know, we're talking about 633 00:29:50,120 --> 00:29:51,840 Speaker 1: bonds here, we're talking about taking risk, it might be 634 00:29:51,880 --> 00:29:54,760 Speaker 1: worth just touching on why some folks invest in bonds 635 00:29:54,800 --> 00:29:57,960 Speaker 1: to begin with, and that's because of what's known as 636 00:29:58,080 --> 00:30:01,200 Speaker 1: sequence of returns risk. And this risk refers to the 637 00:30:01,240 --> 00:30:04,960 Speaker 1: fact that the withdrawals from your portfolio when the market 638 00:30:05,040 --> 00:30:08,760 Speaker 1: is down, how those can have an outsized negative impact 639 00:30:08,840 --> 00:30:12,800 Speaker 1: on your overall rate of return, and conventional wisdom says 640 00:30:12,880 --> 00:30:17,000 Speaker 1: that stocks and bonds have an inverse relationship. So imagine 641 00:30:17,360 --> 00:30:20,400 Speaker 1: you're you know, you're often retirement stocks are down, well, 642 00:30:20,440 --> 00:30:23,040 Speaker 1: then theoretically bonds are up. And so what that means 643 00:30:23,080 --> 00:30:25,800 Speaker 1: is you sell those bonds rather than your stocks that 644 00:30:25,840 --> 00:30:27,680 Speaker 1: are in the gutter. That's how you pay the bills. 645 00:30:27,760 --> 00:30:29,640 Speaker 1: That's how two was an anomaly on that front. By 646 00:30:29,640 --> 00:30:31,479 Speaker 1: the way, yes it was, which is also why it's 647 00:30:31,520 --> 00:30:33,840 Speaker 1: not a rule per se, but just kind of like, 648 00:30:34,080 --> 00:30:38,520 Speaker 1: oh yeah, conventional thumb exactly. But again, Jess, you know 649 00:30:38,600 --> 00:30:40,960 Speaker 1: you've got your pension and that's gonna be your ticket 650 00:30:41,000 --> 00:30:44,000 Speaker 1: to taking more risk within your your wrath, within your 651 00:30:44,080 --> 00:30:46,479 Speaker 1: rugrage accounts. One other thing I wanted to mention real 652 00:30:46,560 --> 00:30:49,600 Speaker 1: quick to you mentioned how you've got ten percent of 653 00:30:49,600 --> 00:30:52,840 Speaker 1: your portfolio invested in when what it sounded like was 654 00:30:53,080 --> 00:30:56,840 Speaker 1: single stocks, which isn't what we do personally. It's it's 655 00:30:56,880 --> 00:30:58,520 Speaker 1: definitely not a huge deal. Is not like the end 656 00:30:58,520 --> 00:31:01,360 Speaker 1: of the world that you are slightly more invested in 657 00:31:01,360 --> 00:31:05,840 Speaker 1: individual companies as opposed to widely diversified indexes. But for 658 00:31:05,920 --> 00:31:07,960 Speaker 1: other folks out there, that might be something you want 659 00:31:08,000 --> 00:31:10,920 Speaker 1: to keep in check, I think, and maybe it's because 660 00:31:11,040 --> 00:31:12,719 Speaker 1: you can be a little risk here, I guess if 661 00:31:12,760 --> 00:31:15,880 Speaker 1: you've got your other basis exactly. Yeah, yeah, But and 662 00:31:15,920 --> 00:31:17,960 Speaker 1: I was thinking too, like maybe just would say, well, 663 00:31:18,000 --> 00:31:20,160 Speaker 1: it's because they've done so well. I started out a 664 00:31:20,200 --> 00:31:23,160 Speaker 1: five percent, but he's just letting his winners run. But 665 00:31:23,280 --> 00:31:26,160 Speaker 1: even still, it's just something worth noting. We you know, 666 00:31:26,200 --> 00:31:28,880 Speaker 1: if you do want to invest in individual stocks, we 667 00:31:28,920 --> 00:31:32,120 Speaker 1: would typically recommend to invest no more than five percent 668 00:31:32,200 --> 00:31:35,200 Speaker 1: of your overall portfolio, no doubt. And I think risk 669 00:31:35,320 --> 00:31:37,440 Speaker 1: is still just it's one of my favorite topics in 670 00:31:37,480 --> 00:31:40,320 Speaker 1: personal finance because there's so many things you can discuss 671 00:31:40,360 --> 00:31:42,880 Speaker 1: on that front. Makes me think of our conversation with 672 00:31:42,920 --> 00:31:45,440 Speaker 1: Alison Treeger, who's an economist who writes about risk, and 673 00:31:45,480 --> 00:31:47,960 Speaker 1: she wrote that book What an Economist Walks into a 674 00:31:47,960 --> 00:31:50,640 Speaker 1: Brothel all sorts of her her thoughts on risk, and 675 00:31:50,640 --> 00:31:53,440 Speaker 1: and yeah, I don't remember the episode numberable link to 676 00:31:53,440 --> 00:31:55,920 Speaker 1: that one in the show notes, just a fun conversation 677 00:31:55,920 --> 00:31:57,720 Speaker 1: about risk, how it impacts us, and how we should 678 00:31:57,720 --> 00:32:00,280 Speaker 1: think about it because sometimes the things we've think are 679 00:32:00,320 --> 00:32:02,600 Speaker 1: not risky are actually the riskiest things that we can do. 680 00:32:02,920 --> 00:32:06,440 Speaker 1: Uh specifically like keeping money in all in cash and 681 00:32:06,480 --> 00:32:08,920 Speaker 1: not investing, that's the worst thing we can do because 682 00:32:08,920 --> 00:32:12,400 Speaker 1: the known risk of inflation. But yeah, Jess, hopefully that 683 00:32:12,520 --> 00:32:15,200 Speaker 1: answer helps. And it sounds like you're you're mentally, you're 684 00:32:15,200 --> 00:32:17,840 Speaker 1: thinking the right the right manner and for you, if 685 00:32:17,840 --> 00:32:20,200 Speaker 1: it fits your risk tolerance, we think that that choice 686 00:32:20,200 --> 00:32:22,440 Speaker 1: makes sense. But all right, Matt, We've got more questions 687 00:32:22,440 --> 00:32:25,760 Speaker 1: to get to, including one about tax breaks, how how 688 00:32:25,760 --> 00:32:28,840 Speaker 1: to find out which ones you qualify for as you 689 00:32:28,840 --> 00:32:30,760 Speaker 1: start a new business. We'll get to that and more 690 00:32:30,880 --> 00:32:41,920 Speaker 1: right after this. All right, let's get back to those 691 00:32:41,920 --> 00:32:44,920 Speaker 1: listener questions. Man, it is now signed. For the fourth 692 00:32:45,080 --> 00:32:47,560 Speaker 1: of the five questions, Let's hear from a listener who 693 00:32:47,680 --> 00:32:51,200 Speaker 1: is interested in hearing our thoughts on using Acorns to 694 00:32:51,520 --> 00:32:54,600 Speaker 1: get started investing. Hi, Joe on that. This is Heidi 695 00:32:54,760 --> 00:32:58,480 Speaker 1: from Hurricane Utah. I'm about twenty minutes south of Zion 696 00:32:58,560 --> 00:33:01,840 Speaker 1: National Park. Yeah, and I started on an account with Acorns. 697 00:33:01,880 --> 00:33:06,080 Speaker 1: I'm new to investing and I'm almost forty this year, 698 00:33:06,120 --> 00:33:08,520 Speaker 1: so I want to get my stuff together. I love 699 00:33:08,560 --> 00:33:11,520 Speaker 1: how easy it is and how in control I am 700 00:33:11,600 --> 00:33:13,280 Speaker 1: on the app, and so I just wanted to get 701 00:33:13,320 --> 00:33:15,840 Speaker 1: a start, even though I'm late in the game, and 702 00:33:15,920 --> 00:33:17,880 Speaker 1: so I'm curious to know your thoughts of where I 703 00:33:17,960 --> 00:33:21,680 Speaker 1: should be going first and if I should should continue 704 00:33:21,720 --> 00:33:25,760 Speaker 1: with acorns while going another route as well. I also 705 00:33:25,840 --> 00:33:28,720 Speaker 1: am curious to know where I should be putting my 706 00:33:28,800 --> 00:33:31,600 Speaker 1: kids money right now. I'm putting a little bit of 707 00:33:31,640 --> 00:33:36,080 Speaker 1: savings each week into their accounts, and I just want 708 00:33:36,120 --> 00:33:38,880 Speaker 1: to set them up for success earlier in life. So 709 00:33:39,000 --> 00:33:41,560 Speaker 1: if I could get some direction and guidance on that 710 00:33:41,880 --> 00:33:44,040 Speaker 1: as well, i'd appreciate it. Thanks for all your health. 711 00:33:44,520 --> 00:33:47,000 Speaker 1: Oh man, I'm jealous. That close to Zion National Park. 712 00:33:47,440 --> 00:33:51,160 Speaker 1: That's one of the premier national parks here in our country. Yeah, 713 00:33:51,200 --> 00:33:53,640 Speaker 1: I've been once. It was intellectful, but I been once 714 00:33:53,640 --> 00:33:54,680 Speaker 1: as well. I want to go back. I want to 715 00:33:54,720 --> 00:33:56,640 Speaker 1: take kids. So and this would be the year because 716 00:33:56,680 --> 00:33:59,840 Speaker 1: we've got fourth graders exactly fourth grades getting for free 717 00:34:00,080 --> 00:34:02,200 Speaker 1: that we we've we've actually so it's a really it's 718 00:34:02,200 --> 00:34:05,560 Speaker 1: a really affordable flight to get from Atlanta to Las Vegas, 719 00:34:05,760 --> 00:34:07,479 Speaker 1: which I think would be where you would fly in 720 00:34:07,520 --> 00:34:09,439 Speaker 1: so kay and I've kind of we batted that idea 721 00:34:09,440 --> 00:34:11,359 Speaker 1: around a little bit, maybe for some spring break action, 722 00:34:11,400 --> 00:34:13,960 Speaker 1: all right, that sounds smart. Also the thought of hiking 723 00:34:14,800 --> 00:34:19,000 Speaker 1: canyon where with kids, in particular a three year old, 724 00:34:19,200 --> 00:34:22,120 Speaker 1: it's a little doesn't quite sound like vacation, but there 725 00:34:22,160 --> 00:34:24,239 Speaker 1: might be some easier hi that he could handle it. Run. 726 00:34:24,360 --> 00:34:26,560 Speaker 1: We'll see. But let's get to the heart of Heide's 727 00:34:26,600 --> 00:34:29,279 Speaker 1: question here about investing in acorns. Is that a good 728 00:34:29,320 --> 00:34:33,000 Speaker 1: place to do it? And well, I would say this 729 00:34:33,200 --> 00:34:34,839 Speaker 1: that there are a lot of worse places you could 730 00:34:34,880 --> 00:34:37,000 Speaker 1: be investing, and that's for sure. And so yeah, you 731 00:34:37,000 --> 00:34:38,880 Speaker 1: said you love how easy it is, how you know 732 00:34:38,920 --> 00:34:41,279 Speaker 1: in control you feel, and I totally get it. I 733 00:34:41,320 --> 00:34:43,719 Speaker 1: think I would say, if it's is working well for you, 734 00:34:44,080 --> 00:34:46,040 Speaker 1: I hate to tell you to switch things up. But 735 00:34:46,600 --> 00:34:48,360 Speaker 1: part of the reason to switch things up, or to 736 00:34:48,400 --> 00:34:51,440 Speaker 1: at least consider doing it, is just because of the fees, 737 00:34:51,719 --> 00:34:55,160 Speaker 1: right that acorns charges, And it's they're not nearly as 738 00:34:55,160 --> 00:34:57,239 Speaker 1: bad as you can get in other places, but we 739 00:34:57,360 --> 00:34:59,719 Speaker 1: just really hate fees, and so um that I think 740 00:34:59,719 --> 00:35:02,359 Speaker 1: the fee at acorns they kind of seem small. Three 741 00:35:02,360 --> 00:35:05,560 Speaker 1: dollars a month, that's tiny, right, And you're right, it's 742 00:35:05,600 --> 00:35:08,320 Speaker 1: not massive, but you could do better. And whether or 743 00:35:08,360 --> 00:35:11,000 Speaker 1: not that price is reasonable, honestly, it depends on how 744 00:35:11,040 --> 00:35:14,200 Speaker 1: much money you've got invested, because if your account balance 745 00:35:14,280 --> 00:35:17,359 Speaker 1: is low, that seemingly low fee is actually quite bad 746 00:35:17,360 --> 00:35:19,719 Speaker 1: when compared to the tiny fees that our favorite low 747 00:35:19,760 --> 00:35:22,759 Speaker 1: cost brokerage firms charge. And so three dollars taken out 748 00:35:22,800 --> 00:35:25,680 Speaker 1: of a five balance each month is very, very different 749 00:35:25,800 --> 00:35:27,839 Speaker 1: than three dollars taken out of something like a three 750 00:35:28,280 --> 00:35:31,239 Speaker 1: thousand dollar balance. So how much money you have invested 751 00:35:31,400 --> 00:35:33,839 Speaker 1: points to whether or not that Acorns fee is is 752 00:35:33,880 --> 00:35:37,680 Speaker 1: like bad or actually really not bad? Not yeah, exactly 753 00:35:37,800 --> 00:35:40,400 Speaker 1: at the doable at least, It's important to note that 754 00:35:40,440 --> 00:35:43,760 Speaker 1: Acorns they also have there so they've got their invest option, 755 00:35:44,160 --> 00:35:46,840 Speaker 1: but then they also have a later option and that 756 00:35:46,880 --> 00:35:50,160 Speaker 1: allows you to invest within an IRA and then that's 757 00:35:50,200 --> 00:35:53,040 Speaker 1: with either a traditional or a roth ira A and 758 00:35:53,120 --> 00:35:55,920 Speaker 1: we want your dollars going into that rath option, of course. 759 00:35:56,160 --> 00:35:58,640 Speaker 1: But I do think you're right. You know, while Acorns 760 00:35:58,760 --> 00:36:01,279 Speaker 1: like it's a solid company, they've helped a lot of 761 00:36:01,280 --> 00:36:04,200 Speaker 1: folks say well for their future, they're more recent investing 762 00:36:04,200 --> 00:36:07,320 Speaker 1: options just aren't our favorite, largely because of the fee structure, 763 00:36:07,400 --> 00:36:09,640 Speaker 1: especially for folks who are just getting started. So it 764 00:36:09,680 --> 00:36:12,279 Speaker 1: can be a bummer for for someone who's getting on 765 00:36:12,320 --> 00:36:14,319 Speaker 1: the right track, you know, on the right financial track 766 00:36:14,400 --> 00:36:17,560 Speaker 1: to see their balance grow a whole lot less because 767 00:36:17,640 --> 00:36:19,880 Speaker 1: of that monthly fee. And when some of the others 768 00:36:20,080 --> 00:36:24,160 Speaker 1: are out there charging essentially nothing, like Fidelity with its 769 00:36:24,360 --> 00:36:28,440 Speaker 1: zero funds or even Vanguard, they don't have fees associated 770 00:36:28,480 --> 00:36:31,680 Speaker 1: with having accounts with them. Those are our favorites, Those 771 00:36:31,680 --> 00:36:34,160 Speaker 1: are we would prefer for you to go in that direction. Um. 772 00:36:34,160 --> 00:36:35,920 Speaker 1: And that's the other thing too, Like with those accounts, 773 00:36:35,920 --> 00:36:39,160 Speaker 1: you can still set up automatic deposits into your investment 774 00:36:39,200 --> 00:36:41,440 Speaker 1: accounts from your checking account. And so maybe it's that 775 00:36:41,719 --> 00:36:43,799 Speaker 1: emotional hurdle that comes with like you don't have to 776 00:36:43,800 --> 00:36:47,160 Speaker 1: have an entire investing plan put together. Uh. And maybe 777 00:36:47,239 --> 00:36:49,360 Speaker 1: that's what is so appealing about acorns is that it 778 00:36:49,680 --> 00:36:52,880 Speaker 1: happens in these really small, little bite sized chunks. Well, 779 00:36:52,920 --> 00:36:55,200 Speaker 1: you can do the exact same thing with Fidelity or 780 00:36:55,280 --> 00:36:57,200 Speaker 1: Vanguard just going there set up like even just like 781 00:36:57,239 --> 00:36:59,279 Speaker 1: thirty bucks a month, Like signing up for a thirty 782 00:36:59,280 --> 00:37:02,680 Speaker 1: dollar a month subscription service. Most folks wouldn't bat an 783 00:37:02,680 --> 00:37:05,040 Speaker 1: eyelash at that. Uh. And so if you can take 784 00:37:05,080 --> 00:37:07,480 Speaker 1: that similar approach where you're saying to yourself, you know what, 785 00:37:07,680 --> 00:37:09,279 Speaker 1: it's not that big of a deal. Let's just get 786 00:37:09,280 --> 00:37:12,480 Speaker 1: the ball rolling. Let's get these deposits happening automatically. And 787 00:37:12,520 --> 00:37:15,240 Speaker 1: I think by doing that you could easily match whatever 788 00:37:15,440 --> 00:37:17,920 Speaker 1: that you were able to stock away with Acorns without 789 00:37:18,080 --> 00:37:20,640 Speaker 1: paying that three dollar a month fee. Yeah. I think 790 00:37:20,719 --> 00:37:23,400 Speaker 1: one maybe having medium option too, would be to go 791 00:37:23,440 --> 00:37:26,600 Speaker 1: with a robo advisor like Betterment, where the fees are 792 00:37:26,680 --> 00:37:28,560 Speaker 1: a little bit higher, but it also has some of 793 00:37:28,560 --> 00:37:32,200 Speaker 1: the bells and whistles that's somebody like Acorns offers, and yeah, 794 00:37:32,280 --> 00:37:35,120 Speaker 1: so it's at least worth looking into. I think if 795 00:37:35,160 --> 00:37:39,960 Speaker 1: the interface actually gets you excited and helps you think 796 00:37:39,960 --> 00:37:42,239 Speaker 1: about investing in stocking way more of your money for 797 00:37:42,280 --> 00:37:44,960 Speaker 1: your future, I think that there's something to be said 798 00:37:45,000 --> 00:37:48,640 Speaker 1: about that, the psychological component of that. Yet again we're 799 00:37:48,640 --> 00:37:51,480 Speaker 1: coming back to how someone feels about something versus what 800 00:37:51,560 --> 00:37:54,560 Speaker 1: the actual numbers show when you crunch it, and we're 801 00:37:54,600 --> 00:37:56,640 Speaker 1: not what we're trying to say, we're not discounting how 802 00:37:56,800 --> 00:37:59,120 Speaker 1: folks feel about things. That is important. I mean, the 803 00:37:59,120 --> 00:38:01,280 Speaker 1: truth is, yeah, you've feel good about what you're wearing, 804 00:38:01,440 --> 00:38:03,160 Speaker 1: more likely to go out there on the dance floor 805 00:38:03,280 --> 00:38:06,879 Speaker 1: and get crazy. Right, So there's just there is we 806 00:38:06,920 --> 00:38:10,600 Speaker 1: all have like these, they're these psychological components to how 807 00:38:10,640 --> 00:38:12,959 Speaker 1: we handle our finances. And that's one of the things 808 00:38:12,960 --> 00:38:15,640 Speaker 1: actually that talking about Betterman, one of the better features 809 00:38:15,640 --> 00:38:18,800 Speaker 1: they have is kind of that that hand holding, the 810 00:38:18,840 --> 00:38:22,879 Speaker 1: psychological the encouragement that they offer, I think to their users. So, yeah, 811 00:38:22,920 --> 00:38:24,360 Speaker 1: you pay a little bit more, but I think it 812 00:38:24,360 --> 00:38:27,319 Speaker 1: actually encourages those investors to stay the course and to 813 00:38:27,400 --> 00:38:30,080 Speaker 1: stock more of their money away for the future, which 814 00:38:30,360 --> 00:38:33,439 Speaker 1: is good. But let's talk about Heidi's kind of last 815 00:38:33,520 --> 00:38:35,959 Speaker 1: question about saving up for her kids. And I think 816 00:38:36,360 --> 00:38:39,120 Speaker 1: that desire, Heidi to set your kids up for success 817 00:38:39,200 --> 00:38:41,440 Speaker 1: is admirable, but we want to make sure that you've 818 00:38:41,480 --> 00:38:45,480 Speaker 1: built yourself a decent runway first, Like, don't start investing 819 00:38:45,600 --> 00:38:49,080 Speaker 1: for your child's future until you've made substantial progress saving 820 00:38:49,120 --> 00:38:52,040 Speaker 1: for your own retirement. And then you know, the question 821 00:38:52,080 --> 00:38:55,160 Speaker 1: is where should you put money for your kids once 822 00:38:55,200 --> 00:38:57,440 Speaker 1: you've done that. Well, so much depends on your goals 823 00:38:57,480 --> 00:38:59,320 Speaker 1: and how much you know you've got to set aside, 824 00:38:59,360 --> 00:39:02,440 Speaker 1: and then how all they are. We like acounts a lot, 825 00:39:02,600 --> 00:39:05,040 Speaker 1: whereas we didn't used to recommend those nearly as much, 826 00:39:05,040 --> 00:39:08,000 Speaker 1: but thanks to a recent law change, they're more flexible 827 00:39:08,520 --> 00:39:11,200 Speaker 1: and that that money, if it doesn't get spent for college, 828 00:39:11,200 --> 00:39:14,280 Speaker 1: can now be stocked into a ROTH account for them 829 00:39:14,400 --> 00:39:18,760 Speaker 1: later on. But high Intra Sam's account is another good option. 830 00:39:19,000 --> 00:39:21,560 Speaker 1: And that sounds really basic, but I would say this 831 00:39:21,600 --> 00:39:24,480 Speaker 1: can help you put money in their hands, which is 832 00:39:24,800 --> 00:39:27,520 Speaker 1: key to learning how to handle money well. And you know, 833 00:39:27,640 --> 00:39:29,400 Speaker 1: don't don't think you have to save up thousands of 834 00:39:29,400 --> 00:39:32,200 Speaker 1: dollars for them, but little bits of money set aside 835 00:39:32,200 --> 00:39:35,680 Speaker 1: and then talking with them about saving, spending and investing, 836 00:39:35,760 --> 00:39:37,960 Speaker 1: and you know, discussing what you're learning as well, and 837 00:39:38,280 --> 00:39:40,920 Speaker 1: continue to make these investing choices are going to go 838 00:39:41,000 --> 00:39:44,000 Speaker 1: a long way towards helping them become financially savvy as 839 00:39:44,040 --> 00:39:46,880 Speaker 1: they grow up. Absolutely, Yeah, it's way less about setting 840 00:39:46,960 --> 00:39:50,040 Speaker 1: aside more money, and it's it's more about building up 841 00:39:50,120 --> 00:39:53,680 Speaker 1: the confidence and them learning lessons and then being able 842 00:39:53,680 --> 00:39:56,440 Speaker 1: to essentially like partake in the financial knowledge that you 843 00:39:56,480 --> 00:39:59,120 Speaker 1: are now learning, right Like, I think it's so cool 844 00:39:59,120 --> 00:40:02,240 Speaker 1: that I see the energy Heidi has exactly student herself 845 00:40:02,280 --> 00:40:04,360 Speaker 1: right now. Yes, and I think that A is contagious, 846 00:40:04,400 --> 00:40:06,480 Speaker 1: but her your kids, Heidi, I think they're going to 847 00:40:06,560 --> 00:40:08,960 Speaker 1: see you as like, oh, Mom's an investor, will shoot, 848 00:40:09,400 --> 00:40:11,400 Speaker 1: I better be an investor as well. Oh, mom's like 849 00:40:11,440 --> 00:40:14,200 Speaker 1: setting aside this much money every single month, and when 850 00:40:14,200 --> 00:40:15,960 Speaker 1: it comes to them earning their own money, I think 851 00:40:16,040 --> 00:40:18,439 Speaker 1: that that will easily be able to translate into them 852 00:40:18,520 --> 00:40:20,759 Speaker 1: also doing the same thing. And not to mention, if 853 00:40:20,800 --> 00:40:23,840 Speaker 1: you are getting started here, I think you can avoid 854 00:40:23,920 --> 00:40:26,800 Speaker 1: some of the I guess maybe awkwardness, but maybe some 855 00:40:26,840 --> 00:40:28,759 Speaker 1: of the entitlement that comes with a gift. You've been 856 00:40:28,800 --> 00:40:32,080 Speaker 1: saving for you know, multiple decades, and you've got a 857 00:40:32,120 --> 00:40:35,239 Speaker 1: decent chunk set aside. Generally speaking, I'm not sure how 858 00:40:35,280 --> 00:40:38,120 Speaker 1: healthy it is for kids to know that dollar amount, right, 859 00:40:38,480 --> 00:40:40,480 Speaker 1: But if you are just getting started with whether it 860 00:40:40,520 --> 00:40:43,000 Speaker 1: be your Acorns account or a Betterment account, or whether 861 00:40:43,160 --> 00:40:45,359 Speaker 1: you go ahead and open a rap ira a for 862 00:40:45,440 --> 00:40:47,879 Speaker 1: free with Fidelity, for them to be able to see 863 00:40:47,880 --> 00:40:51,000 Speaker 1: those small amounts that you're stalking away into their like, 864 00:40:51,080 --> 00:40:53,280 Speaker 1: you can show them the interface and show them the growth, 865 00:40:53,480 --> 00:40:55,959 Speaker 1: show them that, oh, we didn't do this this past 866 00:40:55,960 --> 00:40:59,040 Speaker 1: summer because what we're I was really trying to save 867 00:40:59,080 --> 00:41:00,759 Speaker 1: and invest more from my future. And for them to 868 00:41:00,800 --> 00:41:02,759 Speaker 1: be able to see that, they get a peep behind 869 00:41:02,800 --> 00:41:05,839 Speaker 1: the curtain without worrying about any of the you know, 870 00:41:06,200 --> 00:41:08,680 Speaker 1: knock on effects of them knowing that there's like this 871 00:41:08,760 --> 00:41:10,880 Speaker 1: massive amount of money sitting there. Yeah, I think the 872 00:41:11,560 --> 00:41:13,920 Speaker 1: it's more powerful to talk to them about money, and 873 00:41:13,920 --> 00:41:15,279 Speaker 1: then you do want to make sure they have money 874 00:41:15,280 --> 00:41:17,320 Speaker 1: in their hands somehow, whether it's working for it or 875 00:41:17,360 --> 00:41:19,360 Speaker 1: you're putting into a savings account for them, because I 876 00:41:19,360 --> 00:41:22,719 Speaker 1: think that that also having money that they get to 877 00:41:22,840 --> 00:41:24,839 Speaker 1: make choices with is powerful and they get to make 878 00:41:24,880 --> 00:41:27,719 Speaker 1: mistakes under your roof as opposed to when they're you know, 879 00:41:27,840 --> 00:41:30,920 Speaker 1: often in college or often you know, living by themselves. 880 00:41:31,440 --> 00:41:33,720 Speaker 1: But I think it's more about the practice of handling 881 00:41:33,719 --> 00:41:36,680 Speaker 1: the money as opposed to stocking up a big stash 882 00:41:36,719 --> 00:41:38,400 Speaker 1: of money that they never touched. Agreed, And there's a 883 00:41:38,440 --> 00:41:40,520 Speaker 1: lot of people, especially in the financial independence movement, that 884 00:41:40,520 --> 00:41:42,480 Speaker 1: are talking They talk about generational wealth and so they 885 00:41:42,480 --> 00:41:45,080 Speaker 1: are saving up massive amounts for their kids. We don't 886 00:41:45,080 --> 00:41:49,359 Speaker 1: necessarily align with that. We're not against saving money out 887 00:41:49,400 --> 00:41:51,520 Speaker 1: for your kids, but it's also uh do it within 888 00:41:51,600 --> 00:41:54,279 Speaker 1: reason and the more careful, the more important part is 889 00:41:54,520 --> 00:41:57,200 Speaker 1: to teach them the lessons to make sure that they're 890 00:41:57,200 --> 00:41:59,520 Speaker 1: going to be investing for their own future. When they 891 00:41:59,520 --> 00:42:01,239 Speaker 1: come of age, so are r Matt. Let's get to 892 00:42:01,360 --> 00:42:04,720 Speaker 1: our last question for this episode. This one is about 893 00:42:04,880 --> 00:42:06,960 Speaker 1: starting a new business and wanting to make sure you 894 00:42:06,960 --> 00:42:09,600 Speaker 1: do it the right way. Hey, Matt and Jewel, this 895 00:42:09,640 --> 00:42:11,919 Speaker 1: is Derek collin In from Minneapolis. Kind of a two 896 00:42:11,920 --> 00:42:15,520 Speaker 1: part question here for you. First off, my wife graduated 897 00:42:15,520 --> 00:42:17,600 Speaker 1: as a marriage and family therapist in May of twenty 898 00:42:17,640 --> 00:42:20,520 Speaker 1: two UM, and we opened up an LLC for at 899 00:42:20,560 --> 00:42:24,560 Speaker 1: that time. She operates partly going into an office space 900 00:42:24,600 --> 00:42:26,399 Speaker 1: that she rents, and then the other kind of half 901 00:42:26,480 --> 00:42:28,840 Speaker 1: the time she's at home doing telehealth where she just 902 00:42:28,880 --> 00:42:31,440 Speaker 1: kind of takes over the top part of our home. 903 00:42:31,920 --> 00:42:34,160 Speaker 1: I was just doing some quick googling and seeing things 904 00:42:34,200 --> 00:42:37,000 Speaker 1: like we can write off miles and square footage and 905 00:42:37,160 --> 00:42:42,160 Speaker 1: internet electricity as part of her business. I was just wondering, 906 00:42:42,600 --> 00:42:45,080 Speaker 1: what advice do you have as tax season is coming up. 907 00:42:45,200 --> 00:42:48,719 Speaker 1: What are maybe other benefits or tax right offs that 908 00:42:48,800 --> 00:42:50,400 Speaker 1: I should be thinking about, or how do we go 909 00:42:50,480 --> 00:42:53,480 Speaker 1: about kind of calculating that. The second part to my 910 00:42:53,600 --> 00:42:56,960 Speaker 1: question was we've always used just free tax USA. UM. 911 00:42:57,040 --> 00:42:59,759 Speaker 1: It's like six or seven bucks, so pretty cheap, and 912 00:43:00,160 --> 00:43:04,239 Speaker 1: we've always had pretty straightforward taxes, but with the LC, 913 00:43:04,360 --> 00:43:06,360 Speaker 1: I was wondering if that really changes things, if you 914 00:43:06,360 --> 00:43:08,879 Speaker 1: would suggest going in and talking to an expert as 915 00:43:08,880 --> 00:43:12,640 Speaker 1: opposed to just trying to use a pretty cookie cutter 916 00:43:13,239 --> 00:43:16,560 Speaker 1: UH system like free tax USA. For what it's worth, 917 00:43:16,600 --> 00:43:18,960 Speaker 1: we also had the birth of our first daughter in 918 00:43:19,320 --> 00:43:21,840 Speaker 1: February of last year, so just wondering if maybe that 919 00:43:21,840 --> 00:43:24,240 Speaker 1: was something else to consider too, between seeing an expert 920 00:43:24,320 --> 00:43:27,319 Speaker 1: or just use an online program. Appreciate you guys taking 921 00:43:27,320 --> 00:43:32,160 Speaker 1: the time and answering my questions. Derek, congrats all the 922 00:43:32,160 --> 00:43:35,640 Speaker 1: milestones man, new business, new kiddo. Like a lot a 923 00:43:35,640 --> 00:43:37,560 Speaker 1: lot of cool stuff happened in your life, by the way, 924 00:43:37,600 --> 00:43:39,319 Speaker 1: you're reaching out to me for advice or to us 925 00:43:39,320 --> 00:43:41,239 Speaker 1: for advice. But I might have to reach out to 926 00:43:41,239 --> 00:43:43,359 Speaker 1: you later because my wife is going down that same 927 00:43:43,400 --> 00:43:46,160 Speaker 1: path to become a marriage and family therapist. So yeah, 928 00:43:46,200 --> 00:43:48,719 Speaker 1: if we get to that graduation date and she's like, 929 00:43:48,760 --> 00:43:50,200 Speaker 1: what do I do now, I'll be like, I I 930 00:43:50,200 --> 00:43:52,480 Speaker 1: can reach out to Derek and he'll tell me what 931 00:43:52,520 --> 00:43:54,920 Speaker 1: to do. You scratch our back, Derek, We'll scratch your exactly. 932 00:43:55,400 --> 00:43:58,440 Speaker 1: But let's talk taxes. It sounds like you have done 933 00:43:58,440 --> 00:44:00,400 Speaker 1: your homework Derek, So that's good. There are are going 934 00:44:00,440 --> 00:44:02,800 Speaker 1: to be deductions that your wife is now gonna qualify 935 00:44:02,920 --> 00:44:06,200 Speaker 1: for now as a small business owner that you didn't 936 00:44:06,239 --> 00:44:10,560 Speaker 1: get to qualify for before, including that home office, and 937 00:44:10,840 --> 00:44:13,040 Speaker 1: of course writing off some of those utility bills too. 938 00:44:13,480 --> 00:44:16,360 Speaker 1: But of course there's gonna be some nuance to those rules. 939 00:44:16,760 --> 00:44:19,280 Speaker 1: So for instance, in order to write off that home office, 940 00:44:19,719 --> 00:44:22,279 Speaker 1: it can be used for anything else other than work. 941 00:44:22,360 --> 00:44:25,400 Speaker 1: It can't double as all right, well, you know, according 942 00:44:25,400 --> 00:44:27,600 Speaker 1: to the letter of the law, that can't be like 943 00:44:27,680 --> 00:44:30,360 Speaker 1: the playroom for the baby or I don't know whatever 944 00:44:30,400 --> 00:44:32,400 Speaker 1: it else that you happen to have been using that 945 00:44:32,480 --> 00:44:35,759 Speaker 1: room for before she started practicing. Uh. And also you 946 00:44:35,800 --> 00:44:38,160 Speaker 1: can't deduct more than three square feet as you are 947 00:44:38,160 --> 00:44:41,480 Speaker 1: coming up with the essentially like the square footed ratio 948 00:44:41,520 --> 00:44:44,799 Speaker 1: as you are looking to to make deductions. And similarly, 949 00:44:44,800 --> 00:44:48,239 Speaker 1: when it comes to utilities or your home internet, you're 950 00:44:48,280 --> 00:44:51,719 Speaker 1: only supposed to deduct the amount that's used for specifically 951 00:44:51,719 --> 00:44:54,840 Speaker 1: for work as well. And so it's a really squarely 952 00:44:54,840 --> 00:44:56,839 Speaker 1: thing here to try and actually figure out, like how 953 00:44:56,880 --> 00:44:59,480 Speaker 1: do you calculate the data usage that your wife is 954 00:44:59,560 --> 00:45:01,880 Speaker 1: using for the business versus what it is that you 955 00:45:01,920 --> 00:45:04,480 Speaker 1: are using while on WiFi and you're sitting there on 956 00:45:04,520 --> 00:45:06,319 Speaker 1: your phone after you put the baby down. But we 957 00:45:06,360 --> 00:45:08,840 Speaker 1: know what you're binging, Derek, Okay, yeah, but you know, 958 00:45:08,880 --> 00:45:10,560 Speaker 1: if you're Internet bills fifty bucks a month and you 959 00:45:10,560 --> 00:45:13,400 Speaker 1: know the business, it might be plausible that that the 960 00:45:13,400 --> 00:45:16,440 Speaker 1: business would use half of the bill. But you've gotta 961 00:45:16,480 --> 00:45:18,440 Speaker 1: love the complexity of the tax code, Matt, right, and 962 00:45:18,480 --> 00:45:21,520 Speaker 1: just how the I R S doesn't really make it 963 00:45:21,560 --> 00:45:24,839 Speaker 1: easy for us as small business owners or as individuals 964 00:45:25,040 --> 00:45:28,200 Speaker 1: to get our taxes right. Because like, let's say another thing. 965 00:45:28,280 --> 00:45:30,279 Speaker 1: Meals are another one of these things that you can 966 00:45:30,680 --> 00:45:33,440 Speaker 1: and your wife now can take deductions for she can 967 00:45:33,480 --> 00:45:37,000 Speaker 1: deduct of meals that were done with a business purpose 968 00:45:37,320 --> 00:45:40,480 Speaker 1: and so um yeah, work related travel that's deductible, to 969 00:45:40,680 --> 00:45:43,319 Speaker 1: office furniture and supplies. There are lots of things now 970 00:45:43,680 --> 00:45:47,759 Speaker 1: that qualify as deductions. Just remember too, that deductions they 971 00:45:47,800 --> 00:45:49,680 Speaker 1: don't mean that you got that item for free, and 972 00:45:49,800 --> 00:45:52,480 Speaker 1: they just mean that you're not taxed on that item. 973 00:45:52,560 --> 00:45:55,360 Speaker 1: So I think that's one thing people get confused sometimes 974 00:45:55,360 --> 00:45:56,680 Speaker 1: like oh great, I'm gonna buy all the stuff so 975 00:45:56,719 --> 00:45:58,759 Speaker 1: I can deduct it, and it's like, well, you know 976 00:45:59,040 --> 00:46:00,759 Speaker 1: if you could have avoided by that stuff you still 977 00:46:00,760 --> 00:46:02,480 Speaker 1: come out of it's on the business. It's like, that 978 00:46:02,520 --> 00:46:04,360 Speaker 1: doesn't mean it's free. Like there's a there's a scene 979 00:46:04,360 --> 00:46:07,200 Speaker 1: from Ship's Creek where there's some confusion around what it 980 00:46:07,239 --> 00:46:09,920 Speaker 1: means that something is on the business. Yes, yeah, so 981 00:46:10,040 --> 00:46:12,040 Speaker 1: I think that's important to mention. So don't just go 982 00:46:12,040 --> 00:46:14,319 Speaker 1: out there and buy new all new office supplies at 983 00:46:14,400 --> 00:46:17,840 Speaker 1: top dollars just because it's on the business, right, But yeah, 984 00:46:18,560 --> 00:46:21,640 Speaker 1: basically it's complicated, which sucks, And so because of that, 985 00:46:21,680 --> 00:46:24,640 Speaker 1: I'd say, yes, you're you're in a different tax realm 986 00:46:24,680 --> 00:46:26,960 Speaker 1: now with this small business having been launched, and it's 987 00:46:27,040 --> 00:46:29,200 Speaker 1: probably in your best interest to hire at tax pro 988 00:46:29,600 --> 00:46:31,600 Speaker 1: ask a few friends who own their own business who 989 00:46:31,680 --> 00:46:34,279 Speaker 1: they use, Maybe interview a few folks, test them out. 990 00:46:34,360 --> 00:46:37,480 Speaker 1: But this is likely going to save time which could 991 00:46:37,520 --> 00:46:40,200 Speaker 1: be spent earning more and building the business, in addition 992 00:46:40,239 --> 00:46:42,800 Speaker 1: to errant tax dollars that you might have otherwise paid. 993 00:46:43,080 --> 00:46:45,160 Speaker 1: This is one of those things that we've consistently said 994 00:46:45,640 --> 00:46:48,319 Speaker 1: four years now on the podcast that hiring someone to 995 00:46:48,320 --> 00:46:50,440 Speaker 1: help you out with taxes makes sense. It makes more 996 00:46:50,520 --> 00:46:52,640 Speaker 1: sense to hire someone. Uh, most of the time to 997 00:46:52,640 --> 00:46:55,480 Speaker 1: help you do taxes than it does hiring a financial 998 00:46:55,480 --> 00:46:57,600 Speaker 1: advisor totally yeah. And you're not going to get a 999 00:46:57,680 --> 00:46:59,879 Speaker 1: tax pro because you know, have a baby. That's easy 1000 00:46:59,920 --> 00:47:02,400 Speaker 1: to do. You just claim someone as a dependent, you 1001 00:47:02,400 --> 00:47:04,840 Speaker 1: write their name, you got the social Security That doesn't 1002 00:47:04,840 --> 00:47:06,759 Speaker 1: really complicate things at all, but the business side of 1003 00:47:06,760 --> 00:47:08,680 Speaker 1: things definitely does. And you don't want to be missing 1004 00:47:08,680 --> 00:47:10,040 Speaker 1: out on some of those deductions that you would have 1005 00:47:10,120 --> 00:47:12,640 Speaker 1: qualified for just because you didn't do enough research and 1006 00:47:12,680 --> 00:47:15,080 Speaker 1: exactly pay the person who does it all day, every 1007 00:47:15,160 --> 00:47:16,840 Speaker 1: day and the laws are constantly changing who does it 1008 00:47:16,920 --> 00:47:19,919 Speaker 1: like the back of their hand exactly, but they really 1009 00:47:19,920 --> 00:47:22,360 Speaker 1: don't have to be terribly expensive as well. Uh So, 1010 00:47:22,520 --> 00:47:25,800 Speaker 1: my guess is that depending on where you are, like you, 1011 00:47:25,800 --> 00:47:28,000 Speaker 1: you might be able to find somebody pretty great and 1012 00:47:28,120 --> 00:47:30,760 Speaker 1: like the three to four range if you know they're 1013 00:47:30,800 --> 00:47:34,160 Speaker 1: preparing your personal and small business taxes. You know, this 1014 00:47:34,200 --> 00:47:35,919 Speaker 1: is based on what the average person is paying for 1015 00:47:35,920 --> 00:47:38,600 Speaker 1: for tax guidance, But this is a situation where you're 1016 00:47:38,600 --> 00:47:41,319 Speaker 1: likely being cheap instead of being frugal. Were you to 1017 00:47:41,400 --> 00:47:43,440 Speaker 1: not hire a tax pro because of that expertise that 1018 00:47:43,440 --> 00:47:46,080 Speaker 1: they're gonna be able to provide, I could easily more 1019 00:47:46,080 --> 00:47:48,359 Speaker 1: than cover what you're gonna end up paying them for 1020 00:47:48,400 --> 00:47:50,520 Speaker 1: their services. But I like what you said as well, Joel, 1021 00:47:50,560 --> 00:47:53,560 Speaker 1: about just asking around, in particular asking someone who is 1022 00:47:53,600 --> 00:47:56,600 Speaker 1: in the same industry as you. So, for instance, a 1023 00:47:56,640 --> 00:47:59,120 Speaker 1: friend of mine was a tax prepare about like ten 1024 00:47:59,200 --> 00:48:02,640 Speaker 1: fifteen years ago, and they found themselves attracting a certain 1025 00:48:02,719 --> 00:48:06,600 Speaker 1: kind of client, specifically truck drivers. They had a couple 1026 00:48:06,800 --> 00:48:09,239 Speaker 1: truck driver clients and they did such a great job. 1027 00:48:09,560 --> 00:48:12,400 Speaker 1: It was something like they have them track their mileage 1028 00:48:12,400 --> 00:48:14,799 Speaker 1: as opposed to the actual expenses because that came out 1029 00:48:14,840 --> 00:48:16,640 Speaker 1: better for them because of that. But what I meant 1030 00:48:16,640 --> 00:48:18,520 Speaker 1: was all those all those guys were like, you've got 1031 00:48:18,520 --> 00:48:20,560 Speaker 1: to hire these folks. They're saving me so much money. 1032 00:48:20,760 --> 00:48:23,440 Speaker 1: But when you have somebody within a specific who is 1033 00:48:23,560 --> 00:48:26,120 Speaker 1: very familiar with the specific industry, specific field, they know 1034 00:48:26,480 --> 00:48:28,839 Speaker 1: how it is that they can not work. Not not 1035 00:48:28,880 --> 00:48:30,960 Speaker 1: like you're not cooking the books, but they know the 1036 00:48:30,960 --> 00:48:34,359 Speaker 1: specific deductions that you are not only allowed to take. 1037 00:48:34,400 --> 00:48:37,799 Speaker 1: But that's the other thing too. Just because there's a 1038 00:48:37,800 --> 00:48:40,800 Speaker 1: deduction that the I R S allows, that doesn't necessarily 1039 00:48:40,840 --> 00:48:42,560 Speaker 1: mean that they like it when you When you take 1040 00:48:42,600 --> 00:48:45,319 Speaker 1: that right, you might be throwing up red flags exactly 1041 00:48:45,400 --> 00:48:46,960 Speaker 1: make it more likely that you're going to be audited, 1042 00:48:47,160 --> 00:48:50,279 Speaker 1: especially given that this sounds like this is the first 1043 00:48:50,360 --> 00:48:51,960 Speaker 1: year that she's been been in business, and so it 1044 00:48:52,000 --> 00:48:54,480 Speaker 1: would be very easy to take a bunch of uh 1045 00:48:54,880 --> 00:48:56,880 Speaker 1: to keep up with a bunch of expenses, to take 1046 00:48:56,920 --> 00:48:59,200 Speaker 1: a bunch of deductions to where she actually has a 1047 00:48:59,200 --> 00:49:03,319 Speaker 1: loss this year. But a tax professional who has experienced 1048 00:49:03,719 --> 00:49:07,319 Speaker 1: representing their clients like within during an audit, they're gonna 1049 00:49:07,360 --> 00:49:09,440 Speaker 1: know the kind of things to look out for. It's 1050 00:49:09,640 --> 00:49:11,680 Speaker 1: highly unlikely that you're going to get audited, but it 1051 00:49:11,719 --> 00:49:14,640 Speaker 1: is still very nice to have somebody who has your 1052 00:49:14,680 --> 00:49:17,080 Speaker 1: back and who is experienced yea, And they might say, yes, yes, 1053 00:49:17,120 --> 00:49:19,440 Speaker 1: you are eligible for that to be able to take 1054 00:49:19,480 --> 00:49:23,840 Speaker 1: that deduction, but actually it's not wisest to do. Hey, Actually, 1055 00:49:23,880 --> 00:49:26,320 Speaker 1: if you, you know, hold off on this purchase until 1056 00:49:26,360 --> 00:49:28,279 Speaker 1: next year, that I'll give you a much bigger tax section. 1057 00:49:28,280 --> 00:49:30,400 Speaker 1: There are all sorts of things like that that an 1058 00:49:30,480 --> 00:49:33,680 Speaker 1: expert can walk you through and it might make more 1059 00:49:33,719 --> 00:49:35,239 Speaker 1: sense than just kind of trying to go the d 1060 00:49:35,280 --> 00:49:37,840 Speaker 1: I Y R. And one more last thing worth mentioning 1061 00:49:37,880 --> 00:49:40,000 Speaker 1: here is now that your wife runts her own business. 1062 00:49:40,080 --> 00:49:43,680 Speaker 1: She's going to have more retirement account options open to her, 1063 00:49:43,719 --> 00:49:46,160 Speaker 1: which would allow her to sock away a whole bunch 1064 00:49:46,200 --> 00:49:48,719 Speaker 1: of money for retirement. Each and every year we do 1065 00:49:48,760 --> 00:49:51,480 Speaker 1: the SOLO four O one K. Here at how the money. 1066 00:49:51,680 --> 00:49:54,360 Speaker 1: It's the best, It's pretty great. The step I ra 1067 00:49:54,360 --> 00:49:57,320 Speaker 1: A is another great account worth considering. It's pretty similar, 1068 00:49:57,640 --> 00:50:00,000 Speaker 1: but they can be a little confusing because you can 1069 00:50:00,080 --> 00:50:03,080 Speaker 1: contribute both as the employer and as the employee. But 1070 00:50:03,200 --> 00:50:06,760 Speaker 1: she could contribute up to sixty six thousand dollars towards 1071 00:50:06,760 --> 00:50:08,560 Speaker 1: the Solo four O one K this year. I know 1072 00:50:08,760 --> 00:50:12,279 Speaker 1: it's unlikely. That's just hoping to like make somewhere in 1073 00:50:12,280 --> 00:50:14,319 Speaker 1: that ballpark. I'm sure your first year in business. Um, 1074 00:50:14,360 --> 00:50:16,400 Speaker 1: that would be wonderful. But what a goal to shoot 1075 00:50:16,400 --> 00:50:18,879 Speaker 1: for to know that eventually, with these accounts, you really 1076 00:50:18,880 --> 00:50:21,120 Speaker 1: can put away a ton of money in any single 1077 00:50:21,160 --> 00:50:24,359 Speaker 1: given year for your future. That's right. But Derek, best 1078 00:50:24,360 --> 00:50:27,040 Speaker 1: of luck to you and your new baby, this new business. 1079 00:50:27,320 --> 00:50:29,160 Speaker 1: A lot of exciting things going on in your life, 1080 00:50:29,160 --> 00:50:32,280 Speaker 1: and hopefully we've pointed you in the right direction. Joel, 1081 00:50:32,840 --> 00:50:34,759 Speaker 1: let's get back to the beer. Dude. You and I 1082 00:50:34,840 --> 00:50:39,640 Speaker 1: enjoyed a Lindemann's fram Boi. This is a raspberry lambic beer. 1083 00:50:39,719 --> 00:50:42,319 Speaker 1: What were your thoughts? Oh man, this is well, this 1084 00:50:42,360 --> 00:50:44,000 Speaker 1: is truly one of my favorite styles. I will say, 1085 00:50:44,000 --> 00:50:46,880 Speaker 1: not my favorite representation of the style because I like 1086 00:50:46,960 --> 00:50:49,480 Speaker 1: the real funky ones, because this one is less funky 1087 00:50:49,560 --> 00:50:52,800 Speaker 1: and way more sweet. Yes, so this is probably more 1088 00:50:53,080 --> 00:50:55,279 Speaker 1: in your in your room. It's almost I think it's 1089 00:50:55,400 --> 00:50:57,919 Speaker 1: sweet for me. Yeah, yeah, like it' it's it's got 1090 00:50:57,960 --> 00:51:00,480 Speaker 1: so much sugar going on, Like it ends me up, 1091 00:51:00,480 --> 00:51:02,600 Speaker 1: something like a one of those plastic jugs of juice 1092 00:51:02,600 --> 00:51:04,439 Speaker 1: that you buy it like ch at the grocery store. 1093 00:51:04,520 --> 00:51:06,720 Speaker 1: It's so taste, you know, talking about this tastes almost 1094 00:51:06,719 --> 00:51:08,600 Speaker 1: like grape juice, but it's like raspberry juice for sure. 1095 00:51:08,840 --> 00:51:11,799 Speaker 1: It's it's definitely super sweet, but it's I would say 1096 00:51:11,840 --> 00:51:13,799 Speaker 1: for people who are like I think, I like might 1097 00:51:13,880 --> 00:51:16,640 Speaker 1: like fruity beers and I like sweet stuff and I 1098 00:51:16,680 --> 00:51:20,759 Speaker 1: like grape juice or whatever like the Lindamans. The Lindaman's 1099 00:51:21,320 --> 00:51:24,760 Speaker 1: fruited beers really are probably a really good first stepping 1100 00:51:24,800 --> 00:51:27,120 Speaker 1: stone for a lot of people. Probably it's still good, 1101 00:51:27,280 --> 00:51:29,680 Speaker 1: like I still like it. I'm still enjoyable, but it's 1102 00:51:29,760 --> 00:51:32,000 Speaker 1: just man there, when you know what these kind of 1103 00:51:32,000 --> 00:51:34,200 Speaker 1: beers can be, when you've had the world I mean literally, 1104 00:51:34,239 --> 00:51:36,640 Speaker 1: we've had some of the not the brag or anything, 1105 00:51:36,640 --> 00:51:39,480 Speaker 1: but we really have had some of the best beers 1106 00:51:39,600 --> 00:51:45,760 Speaker 1: within these categories. From examples like those are just absolute monsters. 1107 00:51:45,840 --> 00:51:48,240 Speaker 1: But this world class, This one is this one is solid. 1108 00:51:48,400 --> 00:51:50,120 Speaker 1: This is the kind that I feel like my kids 1109 00:51:50,120 --> 00:51:53,000 Speaker 1: could drink this and they wouldn't know its beer completely 1110 00:51:53,320 --> 00:51:55,600 Speaker 1: be like, oh this is so good. I'm like, no, stop, don't. 1111 00:51:56,840 --> 00:52:00,239 Speaker 1: But regardless, it is still very fun to drink any 1112 00:52:00,320 --> 00:52:04,240 Speaker 1: kind of beer here while we record an episode. And also, 1113 00:52:04,440 --> 00:52:07,000 Speaker 1: if you are in the market for a new credit card, 1114 00:52:07,320 --> 00:52:09,120 Speaker 1: we would recommend for you to head over to have 1115 00:52:09,239 --> 00:52:12,520 Speaker 1: the money dot Com forward slash credit cards there. We've 1116 00:52:12,560 --> 00:52:15,759 Speaker 1: got a fantastic tool that allows you to filter the 1117 00:52:15,840 --> 00:52:20,040 Speaker 1: results based on the different kinds of rewards, the different 1118 00:52:20,040 --> 00:52:22,920 Speaker 1: types of miles, the different kinds of bonuses that you 1119 00:52:22,960 --> 00:52:25,560 Speaker 1: can earn. It is extremely easy to use and we 1120 00:52:25,600 --> 00:52:27,640 Speaker 1: would recommend for you to check it out. We'll make 1121 00:52:27,680 --> 00:52:29,279 Speaker 1: sure to have show notes up on the website as 1122 00:52:29,360 --> 00:52:31,800 Speaker 1: well for this episode, but Joel, that is going to 1123 00:52:31,880 --> 00:52:34,200 Speaker 1: be it for this one. Man until next time. Best 1124 00:52:34,200 --> 00:52:35,919 Speaker 1: friends out and best friends out