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

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Speaker 1: not and today we're discussing end of your deadlines, how

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Speaker 1: to reduce your taxes and maximize your money. Yeah, boye,

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Speaker 1: the clock is ticking. Oh did you finish watching Stranger Things?

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Speaker 1: By the way, I still haven't finished. I think I

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Speaker 1: got one episode left, the grand Father Clock Ticket. It's

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Speaker 1: so good, I just haven't prioritized watching the ending. Sadly

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Speaker 1: well when they make them that long, Uh, those episodes

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Speaker 1: are so stinking long yet to it's not like the

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Speaker 1: old days where you just sit down for solid thirty

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Speaker 1: five minutes. Maybe was the length of a movie? Was

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Speaker 1: a full, full length, full feature movie. Now that's what

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Speaker 1: I was picturing that that clock ticking, which, by the way,

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Speaker 1: also kind of sounds like the beginning of a stick song.

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Speaker 1: I'm trying to think which one I could see that.

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Speaker 1: Every time that happened, I'm like, what song from the

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Speaker 1: eighties does that keep reminding me of? But I haven't

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Speaker 1: looked it up, but I know there's a stick song

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Speaker 1: that sounds like thanks for reminding me of my dad

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Speaker 1: by bring up a sticks reference? Also, oh man, I

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Speaker 1: had I totally have the best hits of sticks like

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Speaker 1: that that black album. They've got a lot of like

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Speaker 1: some sticks and and my dad's more but two B

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Speaker 1: brothers guy, but still he can see him talk sticks

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Speaker 1: with you brothers, brothers, all those guys. That's right. But yeah,

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Speaker 1: that is what we're talking about today. We're talking about

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Speaker 1: some of these things that you need to get done

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Speaker 1: before at the end of the year. I'm excited to

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Speaker 1: get into it today. But yeah, for sure. One thing

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Speaker 1: that you don't need to do though before the end

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Speaker 1: of the year. It's signed up for a home warranty.

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Speaker 1: And Matt, I got this this letter in the mail.

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Speaker 1: I don't know when when you buy buy a new house. Yeah,

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Speaker 1: it's pretty good if you looking. It looks like a

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Speaker 1: check like made out to me from a home warn

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Speaker 1: tea company that's your name on it and everything. And

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Speaker 1: they're saying it's only a hundred dollars, which you know,

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Speaker 1: sounds like not a not terrible movie. Like cool. If

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Speaker 1: this is like some insurance policy and I only have

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Speaker 1: to pay a h bucks for then this might be

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Speaker 1: worth the money. It's an official looking letter to it,

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Speaker 1: just got the window on the front, and they make

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Speaker 1: them look more and more legit every day we were

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Speaker 1: just teaching. She was like, Daddy, should we hang onto this?

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Speaker 1: She was like throwing out some junk mail. She's like,

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Speaker 1: it's got your first, middle and last name on it.

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Speaker 1: And I was like, actually, yeah, let me take a

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Speaker 1: look from the from the government when they make it

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Speaker 1: sound like it's this limited time thing and they got

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Speaker 1: your back, and just all the fine print is just

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Speaker 1: so frustrating to read. And then they say, not all

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Speaker 1: consumers have previous coverage. We're not affiliated with your current

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Speaker 1: mortgage shoulder. This is not a check because it kind

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Speaker 1: of looks like a check. And so yeah, just watch

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Speaker 1: out for this kind of craft in the mail and

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Speaker 1: in particularly when we're talking about home warrant companies. You

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Speaker 1: have to look at the fine print behind what they're offering.

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Speaker 1: How much service call is going to cost you, what

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Speaker 1: appliances in the home they're covering. Typically, these insurance policies

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Speaker 1: they're not even worth a hundred bucks a year. It

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Speaker 1: sounds cheap, but the reality is you might just be

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Speaker 1: throwing away hundred and it's probably gonna be more hassle

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Speaker 1: working with this home warranty company to get repairs done,

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Speaker 1: and potentially even more costly than just sending aside money

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Speaker 1: month after month to pay for repairs on your own

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Speaker 1: most definitely, man the the check in the mail. It's

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Speaker 1: an effective marketing technique. I know, I received something your

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Speaker 1: attention from. I think was it from the State of

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Speaker 1: Georgia or from the federal government. But I had some

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Speaker 1: extra money that was due to me, and you got

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Speaker 1: in a check form send it as an actual check,

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Speaker 1: as an actual check. Yeah, I cannot remember what it was.

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Speaker 1: I just saw that it was legit snuffed a picture

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Speaker 1: of it, deposited it, threw it away. Okay. I think

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Speaker 1: if I tried that with this, my bank would be like, sorry,

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Speaker 1: did you not read the fine? Friend? This isn't actually

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Speaker 1: a check. But yeah, I hate I hate these like

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Speaker 1: insidious marketing techniques where it looks like it's some sort

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Speaker 1: of legitimate document that you've got to take a look at.

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Speaker 1: Then you open it up and you're like, dude, this

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Speaker 1: is just some ploy to try to nab my money.

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Speaker 1: And I think a lot of people, though, might see

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Speaker 1: this and they're like, oh, yeah, this just seems like

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Speaker 1: a worthy use of my dollars. I'm using it to

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Speaker 1: protect finances, But in reality, these companies just want to

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Speaker 1: like suck you dry this right, you just getting sold

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Speaker 1: something you don't need. Let's introduce the beer we are

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Speaker 1: enjoying during this episode. This is called pickle Down Economics.

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Speaker 1: And that's right, pickle down, not trickled down. Uh. This

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Speaker 1: is another beer by Boss Brewing Company. Uh. This is

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Speaker 1: one of the mini beers that Bob and his wife

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Speaker 1: donated to the show. So thank you so much, Bob.

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Speaker 1: Looking forward to enjoying this one, Joel and sharing our

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Speaker 1: thoughts at the end of the episode. Based on the

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Speaker 1: face that you've made, I can already tell you may

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Speaker 1: not be a fan of pickles, but let's see my thoughts.

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Speaker 1: But this is a great name for a beer with

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Speaker 1: It's so good, especially for money nerds. Right, pickle Down Economics.

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Speaker 1: The name is at least a ten. And we'll give

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Speaker 1: our our tasting notes, our thoughts on how we enjoyed

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Speaker 1: this beer at the end of the episode. Totally. But

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Speaker 1: let's get onto a matt. Let's talk about those end

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Speaker 1: of your deadlines and we're gonna talk about reducing taxes.

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Speaker 1: We're gonna talk about basically maximizing your money moves and

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Speaker 1: doing things in the most efficient manner, since you've got

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Speaker 1: just one quarter left for the rest of the year,

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Speaker 1: less than a hundred days until we hit three. And

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Speaker 1: you know we we all need reminders in our lives.

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Speaker 1: I don't know about you, Matt. I remember like buying

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Speaker 1: a palm pilot back in the day, trying to get

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Speaker 1: my crap together because I was so utterly, utterly useless

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Speaker 1: when it came to the palm pilot. Yeah, dude, like

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Speaker 1: and one old dude, I know, I know it was.

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Speaker 1: It was just this desperate attempt to keep some sort

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Speaker 1: of order insanity in my life. And until Google Calendar

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Speaker 1: came along, man, I was just I flubbed everything when

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Speaker 1: it came to showing up on time and getting things done.

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Speaker 1: And by Google Calendar, you mean your wife, the fact

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Speaker 1: that you two got married and then all of a

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Speaker 1: sudden you got your game together. Actually, no, I think

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Speaker 1: Google Calendar was more important on that note. Yeah, seriously,

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Speaker 1: Google Calendar has saved my life, Like it helps me.

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Speaker 1: It just makes it easy to schedule stuff and reminds

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Speaker 1: me of what I need to do. And that Joel

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Speaker 1: is not going to give you any credit. I'm not

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Speaker 1: saying she hasn't changed my life for the positive more

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Speaker 1: than Google calendar. I'm just saying that Google calendar is

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Speaker 1: like the thorn in my side telling me to do

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Speaker 1: what I need to do. But some reminders are more

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Speaker 1: important to heat than others. Right Like, it makes me

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Speaker 1: think of the gaslight that comes on in your car.

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Speaker 1: Let's say it's a good reminder you're still old school

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Speaker 1: driving in an ice powered vehicle. Right Well, when that

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Speaker 1: gaslight comes on, you've got to change course. You might

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Speaker 1: have a little bit of time left, but the reality

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Speaker 1: is that if you don't hit up a gas station

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Speaker 1: in the near future, you're gonna be strained by the

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Speaker 1: side of the road, just not paying attention to it,

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Speaker 1: blocking it out, stick in some electrical tape or something

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Speaker 1: over at the top of that line, you're gonna end

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Speaker 1: up in a worse position. And and this episode is

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Speaker 1: kind of here to function similarly to that gaslight. That's

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Speaker 1: kind of a warning because you've basically got three months

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Speaker 1: left in two you can either use them to your

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Speaker 1: advantage attaining some of the financial goals that you've set

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Speaker 1: out to achieve at the beginning of the year, maybe

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Speaker 1: goals that you made in January, or you can attempt

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Speaker 1: to coast into running on fumes. The choices up to you,

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Speaker 1: but we're going to kind of hopefully give you a

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Speaker 1: roadmap for what you can accomplish in the next three

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Speaker 1: months if you're to heed our warnings today. Yeah, and

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Speaker 1: at risk of extending this metaphor a little bit too far,

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Speaker 1: I'm going to do it anyway because I think it

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Speaker 1: totally fits. You've got to use some of that gas,

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Speaker 1: that remaining gas that you have in the tank in

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Speaker 1: order to actually get to the gas station, which will

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Speaker 1: then allow you to get to your ultimate goal, your

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Speaker 1: your ultimate destination. Right. And I think the same thing

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Speaker 1: is true when it comes to our money, Like whatever

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Speaker 1: money we have, funds that we've gotten our savings account,

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Speaker 1: maybe the rest of this year. You might have goals,

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Speaker 1: you might have things that you want to spend that

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Speaker 1: money on, But what we're saying is you need to

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Speaker 1: invest that money, uh so that down the road potentially

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Speaker 1: you will have more money. Essentially, what we're talking about

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Speaker 1: here is it's like delayed gratification. Like everybody wants to

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Speaker 1: get to the beach a little bit sooner, but you

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Speaker 1: can't just think, well, I'm not I don't want to

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Speaker 1: pull over and get some more gas. That's just gonna

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Speaker 1: slow me down. It's like, no, no no, no, no no, you

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Speaker 1: have to do that in order to actually achieve your goal.

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Speaker 1: And in the same way, if if we aren't making

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Speaker 1: some of these wise moves with our money now, you

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Speaker 1: might be thinking, well, no, I don't want to set

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Speaker 1: that money aside. I want to be able to spend

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Speaker 1: that on the things that are going to bring me

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Speaker 1: happiness in life. Well, if you don't take some of

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Speaker 1: that money and invest it, you won't actually have money

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Speaker 1: ultimately to enjoy life down the road. Yeah, and we've

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Speaker 1: got more to talk about than just investing, because there

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Speaker 1: are literally some time sensitive topics here in regards to taxes,

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Speaker 1: in regards to healthcare spending that if you don't know

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Speaker 1: the rules, you could end up losing money. You could

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Speaker 1: just forfeit hundreds or thousands of dollars that you have

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Speaker 1: been saving. H And so you have to know about

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Speaker 1: those things ahead of time so that you don't screw

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Speaker 1: the pooch and like leave those dollars on the table,

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Speaker 1: floating away into the ether so that never to be

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Speaker 1: seen again. Yeah, it says if when the uh the

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Speaker 1: low gas warning light came on, it's like you didn't

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Speaker 1: know that that meant you needed to get gas. That's

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Speaker 1: why we're you know, we've got this episode here for

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Speaker 1: you today because like now truthfully is the perfect time

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Speaker 1: to to take a step back, to zoom out a touch,

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Speaker 1: and to see where you are with your money goals,

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Speaker 1: because the reality is that there are some of these

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Speaker 1: like hard and fast timelines approaching that can inhibit our

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Speaker 1: ability to achieve those goals. And if you don't take

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Speaker 1: advantage now, like the window is going clothes whether you

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Speaker 1: like it or not. For example, like you'll want to

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Speaker 1: be aware of some particular nuances with uh, you know,

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Speaker 1: on the student loan front. Uh, you want to know

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Speaker 1: what's going on with your workplace benefits. And there are

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Speaker 1: a lot of taxifications that you should be thinking about now.

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Speaker 1: While you still have a few months to make some

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Speaker 1: of these changes. It doesn't really help to hear about

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Speaker 1: it on December because you know the time to then.

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Speaker 1: I mean you might have time to actually like fund

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Speaker 1: an account, but how much money are you going to

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Speaker 1: have set aside to actually successful and some of these things.

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Speaker 1: It takes a minute to reallocate some of your resources

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Speaker 1: to make sure you're taking a mantage to the fullest exactly.

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Speaker 1: But the truth is, like we all have a limited

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Speaker 1: time frame to be able to make the most optimal

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Speaker 1: moves with our money, whether they are self imposed goals

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Speaker 1: or whether or not they're these rigid I R S. Rules.

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Speaker 1: That's why today's episode is so important. The clock is

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Speaker 1: ticking and we want to make sure that this is

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Speaker 1: something you are thinking about now. Yeah, and the reality

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Speaker 1: is too that you can there's something about a time

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Speaker 1: crunch that helps you realize that you've gotta get going.

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Speaker 1: It can offer the necessary motivation. It makes me think

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Speaker 1: of like NFL teams they practice the two minute drill.

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Speaker 1: It's amazing how sometimes it can take a team ten

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Speaker 1: or eleven minutes to march down the field to score

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Speaker 1: a touchdown. Whereas another team, like I think Appalachian State

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Speaker 1: just a week or two ago, they had like a

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Speaker 1: hail mary touchdown and like final seconds of the game, Like,

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Speaker 1: it's possible to pull a hail mary, right, But the

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Speaker 1: more time you have, if you have two, two and

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Speaker 1: a half three minutes, it gives you gives you the

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Speaker 1: chance to like executed game land as opposed to just

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Speaker 1: like throwing up a prayer and that deadline can basically

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Speaker 1: rouse us from our laziness. And I don't know about

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Speaker 1: you how you like to tackle projects when you were

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Speaker 1: in college, but I was really good at procrastinating, wait

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Speaker 1: until I even I remember trying to pull back to

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Speaker 1: back all nighters one time, which was really really hard,

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Speaker 1: big mistake, And one of my friends said that chewing

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Speaker 1: on craffee grounds would would help give you that extra

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Speaker 1: caffeine stimulation. I don't know why I didn't just like

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Speaker 1: brew it and try it, but I remember like shoving

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Speaker 1: coffee grounds into my mouth to try to keep myself awake,

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Speaker 1: like the actual grounds. Like I've eaten coffee beans before,

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Speaker 1: Like do you ever do that? No? You chew them? Yeah,

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Speaker 1: well like you with the coffee grounds. It makes me

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Speaker 1: think of like like Wolf of Wall Street or whatever.

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Speaker 1: You're sitting there, like the cocaine scene. You're like, oh,

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Speaker 1: I hate it, I'm doing it for the high. I've

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Speaker 1: done that with I mean because you can buy like

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Speaker 1: chocolate covered coffee beans before, and one time I thought, oh,

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Speaker 1: why do you have to cover it in chocolate? So

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Speaker 1: like if I'm running out and I don't not taste

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Speaker 1: like crap I guess. Well, I mean, yeah, like if

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Speaker 1: you get some beans that are better, like they don't

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Speaker 1: taste like you're just chewing on like charcoal or something

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Speaker 1: like that. But if I'm running out the door and

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Speaker 1: I don't have time to make coffee, sometimes, like on

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Speaker 1: some beans, I'll grab like a few, yeah, like a

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Speaker 1: little small, little pinch of beans and kind of crunched

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Speaker 1: down them. It's helpful to have a thing of water

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Speaker 1: because it does get kind of grainy, you know. If

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Speaker 1: you're trying to stay up all night and ride a paper,

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Speaker 1: maybe maybe that's the ticket. But I don't know if

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Speaker 1: I don't know why you didn't mend that either, like

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Speaker 1: you're sitting there working all night on the papor, just

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Speaker 1: actually brew some coffee. Yeah, yeah, it's a convenience thing

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Speaker 1: for for me. Yeah, I don't do it often. Well,

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Speaker 1: in the reality is it? Even though time is just

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Speaker 1: like human invention, right, we all we all have the

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Speaker 1: same twenty four hours in a day. But the reality

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Speaker 1: is Boxton didn't exist back in the cave man days, right,

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Speaker 1: and sundials sundes back in caveman times. Now, that was

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Speaker 1: after that came Tinge. That's what that was all about

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Speaker 1: it was like a like a lunar calendar or something.

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Speaker 1: But it's just it's his invention, right to that that

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Speaker 1: we can use in order to in order to help

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Speaker 1: us achieve our goals. Time is something that we now

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Speaker 1: kind of all function according to. But yeah, when it

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Speaker 1: comes to time, there are a lot of self imposed

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Speaker 1: time deadlines, so we can give ourselves that can function

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Speaker 1: as a way to push just to make progress more

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Speaker 1: quickly than maybe we otherwise would. It actually makes me

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Speaker 1: think of some of the the the how how many

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Speaker 1: challenges that we launched at the beginning of the year,

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Speaker 1: right we we talked about this back in episode And

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Speaker 1: maybe you signed up for a sell your stuff challenge? Uh,

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Speaker 1: and if so, this is a great time for you

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Speaker 1: to check in on your progress. You know, like even

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Speaker 1: if you've only sold like five items, sure, like you

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Speaker 1: totally are behind, but you still have time to make

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Speaker 1: up for it. With the remaining months that we have

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Speaker 1: left this year. It's easier to sell one thing in a

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Speaker 1: a week, but you can also make up for it quickly.

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Speaker 1: If you didn't do that, or maybe you opted for

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Speaker 1: the fifty two weeks savings challenge. If so, have you

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Speaker 1: kept it up If not, maybe you can buckle down

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Speaker 1: and you can make up for lost time. You've just

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Speaker 1: got to assess where you are at the moment and

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Speaker 1: get motivated to get back on the horse. Because whether

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Speaker 1: or not you jumped in on one of our money challenges,

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Speaker 1: or maybe you created some of your own goals at

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Speaker 1: the beginning of the year, just know that there is

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Speaker 1: still ample time for you to make some meaningful progress

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Speaker 1: on some of these softer self imposed deadlines that help

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Speaker 1: us to achieve our goals a little bit more efficiently,

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Speaker 1: a little more quickly. Yeah, and again, if you if

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Speaker 1: you save the end of the year kind of uh

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Speaker 1: information until literally the very end of the year, it's

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Speaker 1: tough for most people to take action on it. So again,

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Speaker 1: that's why we want to give you the three month

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Speaker 1: heads up here, because that gives you the most chance

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Speaker 1: to actually achieve the things you set out to achieve.

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Speaker 1: Is that why the seventh seventh inning stretch was invented

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Speaker 1: for the players to know that, like, hey, you better

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Speaker 1: get on it. That could be or I could be

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Speaker 1: cynical and say it's just for a longer commercial break.

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Speaker 1: I don't know, probably so yeah, probably, But really, Matt,

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Speaker 1: you you just mentioned the how the Money Savings challenges

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Speaker 1: or the Sell your Stuff challenge. Those are things that

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Speaker 1: we instituted at the beginning of the year, and we

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Speaker 1: created downloadable pds because we wanted people to be able

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Speaker 1: to track their progress and to be able to have

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Speaker 1: a printable sheet of paper that would help them see

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Speaker 1: how they're doing along the way. And maybe it got

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Speaker 1: buried somewhere along the way. You just kind of forgot

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Speaker 1: that that was a goal that you had set out

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Speaker 1: for yourself. Well, maybe it's time to unburied the piece

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Speaker 1: of paper to find it to see where you're at

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Speaker 1: and realize, you know what, I did want to do this,

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Speaker 1: but I let it fall off completely off the radar.

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Speaker 1: I can still accomplish that goal, and I still have

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Speaker 1: time to do it. And there's something else, Matt, that

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Speaker 1: that a lot of people have are saving up for

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Speaker 1: and it's maybe just now starting to dawn on them

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Speaker 1: as they're seeing like Christmas trees everywhere they go in

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Speaker 1: in stores and stuff like that. I think that I

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Speaker 1: started seeing that stuffing like end of August, which is

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Speaker 1: just infuriating. But uh, if you haven't started saving for

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Speaker 1: holiday presents, for for Christmas, presents for your friends and family. Uh,

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Speaker 1: if you if you don't already have a sinking fund

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Speaker 1: that you've been utilizing all your long stocking money away into. Now,

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Speaker 1: it's just a great time. It's a better time than

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Speaker 1: I don't know, next week or the month a month later,

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Speaker 1: to be to make a budget for holiday gifts, so

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Speaker 1: that you know how much money you need to save

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Speaker 1: in order to not go into debt for Christmas. And

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Speaker 1: so who are you buying for and how much do

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Speaker 1: you hope to spend on each of those gifts. That

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Speaker 1: that's a good list to make now, so you know

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Speaker 1: how much money you need to set aside, then we

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Speaker 1: would say start funneling that money away now so you

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Speaker 1: actually have the cash on hand to be able to

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Speaker 1: pay for those gifts without, like I said, going into debt,

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Speaker 1: without using the credit card, without being able to pay

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Speaker 1: it off. The truth is that a huge percentage of

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Speaker 1: Americans buy more than they intended to for others. They

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Speaker 1: didn't have a budget in hand ahead of time for

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Speaker 1: the holidays, so they just spent willy nilly hoping that

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Speaker 1: they would be able to pay off that debt. But

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Speaker 1: in reality, come January, they get the credit card bill

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Speaker 1: and they're shocked and they don't have the money to

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Speaker 1: pay it off. This is not an uncommon thing, and

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Speaker 1: so the only way to prevent that is to start

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Speaker 1: proactively planning and saving. Now, that's like one of those

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Speaker 1: things we want to encourage you to do. Since you've

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Speaker 1: got three months left, you got time to save up

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Speaker 1: for your holiday expenditures. But it's time to get that

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Speaker 1: ball rolling now, that's right. Yeah, Now, honestly, the best

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Speaker 1: time is January one. That's the best time to start

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Speaker 1: saving for over the course of an entire year, but

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Speaker 1: the next best time right now. It's kind of like

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Speaker 1: planning a tree, right, You should should plant it two

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Speaker 1: decades ago, but a should plan one today. You should

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Speaker 1: have planned it yesterday, but the next best day to

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Speaker 1: plan it today. The the average American Joel, they spend

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Speaker 1: around a thousand dollars on Christmas or holiday gifts. Uh.

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Speaker 1: And so if that's about how much you plan a smen,

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Speaker 1: that means that if you haven't been setting money aside

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Speaker 1: up until now, that means you've got to save about

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Speaker 1: twelve dollars a day between now and the holidays. It's

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Speaker 1: not going to be easy to cut back that much

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Speaker 1: every single day. But again, better to do it now

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Speaker 1: on the front end than to find yourself a thousand

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Speaker 1: dollars or more in debt come January. And so some

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Speaker 1: these are you know, holiday savings, the different how many challenges.

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Speaker 1: These are some of the different softer deadlines that we've

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Speaker 1: talked about. These are kind of self imposed, uh, soft deadlines.

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Speaker 1: But the other year and money moves that we're gonna

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Speaker 1: talk about today are impacted by some much harder deadlines. Uh.

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Speaker 1: Some of those are set forth by the government. Will

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Speaker 1: get to those and what it is that you should

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Speaker 1: be doing in response to those deadlines right after this.

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Speaker 1: All right, we're back. We're still talking about end of

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Speaker 1: your deadlines, how to reduce your taxes maximize your money impact.

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Speaker 1: When you've got just over three months left in this

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Speaker 1: year and and Q four babies. This is coming out

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Speaker 1: here at the end of September, You've still got all

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Speaker 1: of October, November, and December. And when you think about that,

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Speaker 1: talking about ninety plus d's, that's still a lot of

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Speaker 1: time to have a big impact on your annual tax

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Speaker 1: bill and on your ability to stock more money away

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Speaker 1: into these things, into these goals that you have for

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Speaker 1: yourself and into specific retirement accounts. Let's talk about that, because, yeah,

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Speaker 1: that you talked about Matthews, these hard deadlines right there,

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Speaker 1: there's some of these things where it's like, Okay, I

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Speaker 1: didn't quite save up enough for Christmas as much as

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Speaker 1: I wanted to. So one option you have is to

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Speaker 1: just spend less. But when it comes to not contributing

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Speaker 1: enough to your four oh one k, let's say in two, well,

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Speaker 1: come January one, you don't get it too over like

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Speaker 1: that chance is gone. It's it's clearly defined by the

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Speaker 1: I R S and you are s O L right

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Speaker 1: if you don't take advantage of it. And the reason

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Speaker 1: the federal government is getting involved with our retirement accounts

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Speaker 1: is because these accounts have specific tax advantages. Basically, the

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Speaker 1: I R S is saying, okay, fine, we're not going

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Speaker 1: to tax your retirement contributions, but here are the rules

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Speaker 1: you have to abide by in order to get these

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Speaker 1: tax breaks. And and one of the rules is when

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Speaker 1: you're allowed to slide money over into those accounts. And

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Speaker 1: so if maxing out your retirement accounts for two is

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Speaker 1: your goal, well you have three months left to do that.

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Speaker 1: But I also want to say that maxing out your

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Speaker 1: retirement accounts it might not be your goal. You might

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Speaker 1: be early on the money gears, right, which it is

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Speaker 1: a good goal to have for everybody at some point,

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Speaker 1: but that may not be where you are exactly, and

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Speaker 1: we don't want you to feel bad about it. When

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Speaker 1: we talk about our money gears. It's basically the financial

431
00:19:14,200 --> 00:19:16,639
Speaker 1: order of operations. And if you kind of maybe just

432
00:19:16,640 --> 00:19:18,600
Speaker 1: started listening or you're just starting to get a handle

433
00:19:18,680 --> 00:19:21,080
Speaker 1: on your personal finances, you don't go from zero to

434
00:19:21,119 --> 00:19:23,119
Speaker 1: one overnight, and so you might just be at the

435
00:19:23,119 --> 00:19:25,000
Speaker 1: place where you're trying to get that company match and

436
00:19:25,000 --> 00:19:27,160
Speaker 1: to pay off some of that uh credit card debt

437
00:19:27,160 --> 00:19:30,120
Speaker 1: that's been hanging over you. That that is the plan

438
00:19:30,200 --> 00:19:32,280
Speaker 1: you should have, right. You shouldn't be planning to try

439
00:19:32,280 --> 00:19:34,959
Speaker 1: to max out these accounts if you haven't taken care

440
00:19:34,960 --> 00:19:38,520
Speaker 1: of those other things first. But regardless of how much

441
00:19:38,600 --> 00:19:41,120
Speaker 1: you're saving investing for the future, know that you've got

442
00:19:41,160 --> 00:19:44,159
Speaker 1: three months left to shift some things around. If this

443
00:19:44,240 --> 00:19:46,160
Speaker 1: is your goal, if this is one of your top priorities,

444
00:19:46,200 --> 00:19:49,400
Speaker 1: you can still funnel more money into those retirement accounts,

445
00:19:49,560 --> 00:19:51,200
Speaker 1: but you gotta get on the ball and you've got

446
00:19:51,200 --> 00:19:54,239
Speaker 1: to change those adjustments in the back end of your

447
00:19:54,240 --> 00:19:56,560
Speaker 1: workplace retirement plan. Yeah, all right, so let's talk about

448
00:19:56,600 --> 00:19:59,359
Speaker 1: four oh in case, certainly the most popular retirement account,

449
00:19:59,440 --> 00:20:02,159
Speaker 1: the account that's most If you're listening to this, you

450
00:20:02,200 --> 00:20:04,159
Speaker 1: most likely have more money within your four one K

451
00:20:04,640 --> 00:20:06,760
Speaker 1: if that's available to you then you do in any

452
00:20:06,840 --> 00:20:11,040
Speaker 1: other retirement account. And you can contribute twenty five dollars

453
00:20:11,080 --> 00:20:15,520
Speaker 1: to your workplace retirement account for twenty two if you

454
00:20:15,600 --> 00:20:17,119
Speaker 1: are a little bit a little bit older, if you

455
00:20:17,160 --> 00:20:20,280
Speaker 1: are over fifty years old, you can contribute an extra

456
00:20:22,160 --> 00:20:25,080
Speaker 1: And of course the deadline to make these moves is

457
00:20:25,119 --> 00:20:27,600
Speaker 1: going to be the end of this year, December one.

458
00:20:28,080 --> 00:20:30,920
Speaker 1: But keep in mind again, this is a ton of money.

459
00:20:30,960 --> 00:20:33,560
Speaker 1: There are just a whole lot of folks, even ridiculously

460
00:20:33,920 --> 00:20:37,080
Speaker 1: money savvy folks, who aren't necessarily trying to max out

461
00:20:37,080 --> 00:20:39,880
Speaker 1: this account every single year. That's okay, But if this

462
00:20:40,080 --> 00:20:42,840
Speaker 1: is your goal, uh Like, like Joel said, now is

463
00:20:42,840 --> 00:20:44,399
Speaker 1: a great time to check in on your progress. You

464
00:20:44,400 --> 00:20:46,639
Speaker 1: can log into the back end, make some changes to

465
00:20:46,680 --> 00:20:49,560
Speaker 1: your budget and ramp up the percentage of your income

466
00:20:49,560 --> 00:20:52,399
Speaker 1: of your paycheck that you're sacking away so that you

467
00:20:52,400 --> 00:20:55,320
Speaker 1: can make this a reality regardless of how much you

468
00:20:55,640 --> 00:20:58,320
Speaker 1: are or how close you are to maxing maxing that

469
00:20:58,359 --> 00:21:00,600
Speaker 1: account out, we would love to be able to see

470
00:21:00,720 --> 00:21:03,360
Speaker 1: monitoring your progress to make sure that you are at

471
00:21:03,440 --> 00:21:06,520
Speaker 1: least receiving an employer match if that's available to you.

472
00:21:06,600 --> 00:21:10,280
Speaker 1: But also just challenging yourself to hopefully sock away more money. Yeah,

473
00:21:10,359 --> 00:21:13,600
Speaker 1: and money always evolves trade offs, Right, You're gonna have

474
00:21:13,600 --> 00:21:15,399
Speaker 1: to take away from someplace else in your life to

475
00:21:15,480 --> 00:21:18,720
Speaker 1: be able to then make this goal happen. So you're

476
00:21:18,720 --> 00:21:20,680
Speaker 1: gonna take a long, hard look at where your money

477
00:21:20,720 --> 00:21:23,480
Speaker 1: is currently going. Could it be better used funneled into

478
00:21:23,480 --> 00:21:25,360
Speaker 1: that retirement account? And if that's a goal you've set

479
00:21:25,400 --> 00:21:28,400
Speaker 1: for yourself, there's a way to make it happen. But also, yeah,

480
00:21:28,440 --> 00:21:31,159
Speaker 1: don't feel the pressure like you actually have to do it.

481
00:21:31,160 --> 00:21:33,880
Speaker 1: To be a financially savvy individual. There's a lot of people,

482
00:21:33,920 --> 00:21:37,199
Speaker 1: like we talked about Matt just uh investing in the

483
00:21:37,320 --> 00:21:39,639
Speaker 1: Rath I ray alone, which has a contribution limit of

484
00:21:39,680 --> 00:21:42,280
Speaker 1: six thousand dollars. You can still become a millionaire through

485
00:21:42,280 --> 00:21:45,160
Speaker 1: that one account only. So talking about the RATH, let's

486
00:21:45,240 --> 00:21:48,680
Speaker 1: keep talking about that and how that is another account

487
00:21:49,080 --> 00:21:51,679
Speaker 1: where if your your goal is to sock away the

488
00:21:51,720 --> 00:21:54,680
Speaker 1: maximount you can, which is six thousand dollars, you're going

489
00:21:54,760 --> 00:21:57,840
Speaker 1: to want to check in on your progress there. Although

490
00:21:58,480 --> 00:22:01,560
Speaker 1: there's a caveat with with the Wrath in particular that

491
00:22:02,080 --> 00:22:03,760
Speaker 1: you don't actually have to max it out before the

492
00:22:03,800 --> 00:22:06,040
Speaker 1: end of the year. You can actually wait until April

493
00:22:06,920 --> 00:22:11,159
Speaker 1: to fully fund the Wrath. But even so, if you're

494
00:22:11,240 --> 00:22:14,520
Speaker 1: keen on stalking away the max amount of six thousand dollars,

495
00:22:14,920 --> 00:22:16,879
Speaker 1: you might need to start ramping up your weekly or

496
00:22:16,920 --> 00:22:19,359
Speaker 1: monthly contribution amount now in order to make that goal

497
00:22:19,400 --> 00:22:21,760
Speaker 1: a reality. Let's say you have put in so far

498
00:22:21,800 --> 00:22:24,639
Speaker 1: five Well, you're starting a kind of a disadvantage, right

499
00:22:24,680 --> 00:22:26,800
Speaker 1: because you've got a lot of ground to make up.

500
00:22:27,400 --> 00:22:30,120
Speaker 1: So that's gonna mean shifting some goals around in order

501
00:22:30,160 --> 00:22:32,240
Speaker 1: to funnel more money in that direction. If that's your goal,

502
00:22:32,600 --> 00:22:34,199
Speaker 1: and and plus I don't know about you, Matt, I

503
00:22:34,240 --> 00:22:37,680
Speaker 1: like to get started one contributions as early as possible,

504
00:22:37,680 --> 00:22:40,000
Speaker 1: so I don't even like to wait until next year

505
00:22:40,119 --> 00:22:43,439
Speaker 1: to kind of uh continue to finish funding that account.

506
00:22:43,440 --> 00:22:46,320
Speaker 1: I'd prefer to max everything out in the current year,

507
00:22:46,600 --> 00:22:48,600
Speaker 1: just makes it easier for my brain to think about two,

508
00:22:48,640 --> 00:22:50,840
Speaker 1: even though I know I can wait until next year

509
00:22:50,960 --> 00:22:54,119
Speaker 1: to to finish funding my wrath, I'm like, keep that

510
00:22:54,160 --> 00:22:56,760
Speaker 1: on the calendar year, yeah, and get the fiscal individual

511
00:22:56,800 --> 00:22:59,960
Speaker 1: Retirement account year exactly the rest allowed. It just helps

512
00:23:00,200 --> 00:23:02,560
Speaker 1: my brain keep it straight and also just means that

513
00:23:02,600 --> 00:23:05,520
Speaker 1: my money is is getting to work for me even sooner,

514
00:23:05,600 --> 00:23:08,080
Speaker 1: which has proven over I mean when you look at history,

515
00:23:08,119 --> 00:23:10,520
Speaker 1: when you look at the past, when you are investing

516
00:23:10,800 --> 00:23:12,879
Speaker 1: a lump sum at the beginning of the year, you

517
00:23:12,920 --> 00:23:15,119
Speaker 1: are more likely to see higher returns by doing that

518
00:23:15,280 --> 00:23:18,440
Speaker 1: rather than slowly buying every single month rather than dollar

519
00:23:18,480 --> 00:23:20,439
Speaker 1: cost averaging through the year. Some folks can point to

520
00:23:20,440 --> 00:23:22,520
Speaker 1: this year and be like, not not true this year

521
00:23:22,560 --> 00:23:24,359
Speaker 1: at least so far. That is that is true? But

522
00:23:24,359 --> 00:23:25,719
Speaker 1: which is which is true? But if you look at

523
00:23:25,720 --> 00:23:29,000
Speaker 1: it would be this year would be an outlier exactly.

524
00:23:29,000 --> 00:23:30,639
Speaker 1: But there might be a lot of folks who are

525
00:23:30,680 --> 00:23:32,640
Speaker 1: saying that they need those additional three and a half

526
00:23:32,680 --> 00:23:35,680
Speaker 1: months to have that money set aside for their i RA.

527
00:23:35,880 --> 00:23:38,800
Speaker 1: But if you have that money, no shame in that game. Yeah,

528
00:23:39,040 --> 00:23:41,000
Speaker 1: there's there's no shame for sure. But if you have

529
00:23:41,080 --> 00:23:44,400
Speaker 1: that money, go ahead and pull the trigger if yeah,

530
00:23:44,440 --> 00:23:46,320
Speaker 1: because what are you waiting on? And I think sometimes

531
00:23:46,320 --> 00:23:48,800
Speaker 1: folks might be thinking, well, I'm waiting for the market

532
00:23:48,800 --> 00:23:51,880
Speaker 1: to drop, and I would say good luck with that,

533
00:23:52,520 --> 00:23:54,520
Speaker 1: because when do you pull the trigger? When do you

534
00:23:54,560 --> 00:23:57,760
Speaker 1: actually make that purchase happen. We would recommend for folks

535
00:23:57,760 --> 00:23:59,800
Speaker 1: ideally to just get ahead of that cycle. I mean,

536
00:23:59,840 --> 00:24:04,639
Speaker 1: I love to see folks saving two. But that's I mean,

537
00:24:04,640 --> 00:24:06,359
Speaker 1: that's what Kate and I are doing. And what that

538
00:24:06,440 --> 00:24:10,359
Speaker 1: means specifically for three is I are a contribution. Uh.

539
00:24:10,400 --> 00:24:13,480
Speaker 1: The contribute contributional limit has gone from six thousand to sixty,

540
00:24:14,560 --> 00:24:17,600
Speaker 1: which means that this year, instead of if you're kind

541
00:24:17,600 --> 00:24:19,560
Speaker 1: of ahead of the game, you're not. You shouldn't only

542
00:24:19,560 --> 00:24:22,080
Speaker 1: be setting aside five dollars a month in order to

543
00:24:22,119 --> 00:24:24,639
Speaker 1: have that full six thousand dollars next year. You actually

544
00:24:24,640 --> 00:24:26,960
Speaker 1: want to be setting aside something like five forty two

545
00:24:26,960 --> 00:24:29,200
Speaker 1: dollars every single month so that you have that full

546
00:24:29,240 --> 00:24:33,239
Speaker 1: six ready to deploy come January one. So again, if

547
00:24:33,240 --> 00:24:35,280
Speaker 1: you haven't been keeping an eye on that NOE, that

548
00:24:35,320 --> 00:24:39,000
Speaker 1: you still have time. But the window it's closing, it's

549
00:24:39,000 --> 00:24:42,760
Speaker 1: not it's not closing quite as fast though. We'll say that. Uh,

550
00:24:42,800 --> 00:24:44,560
Speaker 1: and well, let's talk about h s a s, which

551
00:24:44,560 --> 00:24:47,639
Speaker 1: are health savings accounts, because these are probably our favorite

552
00:24:47,680 --> 00:24:50,600
Speaker 1: retirement accounts out there. Uh and it just doesn't get

553
00:24:50,760 --> 00:24:54,359
Speaker 1: enough love. Sadly though, this account is often confusing for

554
00:24:54,400 --> 00:24:56,960
Speaker 1: a lot of folks, and they think that stocking away

555
00:24:57,000 --> 00:24:59,639
Speaker 1: money to pay for medical expenses that you'll incur in

556
00:24:59,680 --> 00:25:01,760
Speaker 1: the same year like that, like that is how you're

557
00:25:01,760 --> 00:25:03,879
Speaker 1: supposed to use it. But not if you're keen to

558
00:25:03,960 --> 00:25:06,080
Speaker 1: invest a ton of money for your future that's gonna

559
00:25:06,080 --> 00:25:10,200
Speaker 1: be immune from taxation because the h s A is

560
00:25:10,280 --> 00:25:14,320
Speaker 1: literally the only account that allows you to invest for

561
00:25:14,440 --> 00:25:18,679
Speaker 1: retirement and avoid taxation completely. Uh. And so if you

562
00:25:18,880 --> 00:25:20,680
Speaker 1: have access to one, right if you have a high

563
00:25:20,680 --> 00:25:23,520
Speaker 1: deductible healthcare plan, now would be a great time to

564
00:25:23,560 --> 00:25:25,640
Speaker 1: reassess what you're doing with the money that is going

565
00:25:25,680 --> 00:25:28,440
Speaker 1: into your hs A. And you know, given the smaller

566
00:25:28,480 --> 00:25:31,680
Speaker 1: contribution limits, it feels, I think even more accessible to

567
00:25:31,680 --> 00:25:35,080
Speaker 1: to maxize these accounts. Individuals. You're looking at thirty six

568
00:25:35,160 --> 00:25:38,440
Speaker 1: fifty annually. If you have a family, the contribution limit

569
00:25:38,520 --> 00:25:42,360
Speaker 1: is seventy And we actually did a deep dive back

570
00:25:42,400 --> 00:25:45,280
Speaker 1: in the episode one d five on this account. So

571
00:25:45,320 --> 00:25:47,119
Speaker 1: if you want to know just how glorious it can be.

572
00:25:47,200 --> 00:25:49,600
Speaker 1: I would recommend that you go back and listen to

573
00:25:49,920 --> 00:25:52,040
Speaker 1: that episode. Yeah, I feel like h s a s

574
00:25:52,080 --> 00:25:54,480
Speaker 1: are kind of like misunderstood emo kids in high school.

575
00:25:54,560 --> 00:25:58,200
Speaker 1: You know, It's like you might have certain thoughts about

576
00:25:58,480 --> 00:26:00,119
Speaker 1: what's going on with that kids on the inside, but

577
00:26:00,119 --> 00:26:02,680
Speaker 1: you don't really know. And I might speak from personal experience,

578
00:26:02,720 --> 00:26:04,960
Speaker 1: but still I think hs A s are like that.

579
00:26:05,000 --> 00:26:08,000
Speaker 1: They're this retirement account that is mislabeled. Most people don't

580
00:26:08,040 --> 00:26:10,240
Speaker 1: understand how fruitful it can be for you over the

581
00:26:10,240 --> 00:26:12,439
Speaker 1: long run, and we need to give give it a

582
00:26:12,440 --> 00:26:15,680
Speaker 1: second look. I actually just recently in our Facebook group Matt, which,

583
00:26:15,720 --> 00:26:17,480
Speaker 1: by the way, joined the how to money Facebook group

584
00:26:17,480 --> 00:26:19,840
Speaker 1: awesome people helping each other out, someone said, man, I

585
00:26:19,840 --> 00:26:23,160
Speaker 1: wish I joined this Facebook group years ago because I

586
00:26:23,160 --> 00:26:26,520
Speaker 1: spent down all my HSA money although every single year. Yeah,

587
00:26:26,520 --> 00:26:28,280
Speaker 1: well she spent it down and then and then she said,

588
00:26:28,320 --> 00:26:30,679
Speaker 1: but I'm seeing now how other people are using this

589
00:26:30,720 --> 00:26:35,119
Speaker 1: account to build up retirement savings for themselves and their future,

590
00:26:35,560 --> 00:26:37,560
Speaker 1: and I wish I would have done that. But she said,

591
00:26:37,640 --> 00:26:40,200
Speaker 1: she's got access to and HSA now, and so that's

592
00:26:40,200 --> 00:26:42,919
Speaker 1: how she's handling her current account. But it's one of

593
00:26:42,920 --> 00:26:45,880
Speaker 1: those superpowers that you can that you can utilize when

594
00:26:45,880 --> 00:26:49,639
Speaker 1: saving for retirement. Using your hs A effectively is like

595
00:26:50,119 --> 00:26:52,560
Speaker 1: massive extra wind at your back as your saving for

596
00:26:52,640 --> 00:26:56,000
Speaker 1: your future triple tax advantage. Right. Well, and on the

597
00:26:56,000 --> 00:26:58,199
Speaker 1: note of paying for healthcare expenses, we also want to

598
00:26:58,240 --> 00:27:01,720
Speaker 1: encourage you to spend end, not save, but spend your

599
00:27:02,000 --> 00:27:04,640
Speaker 1: F s A dollars. And so that's why you're flexible

600
00:27:04,680 --> 00:27:06,640
Speaker 1: spending account. That's right. And that's why these things get

601
00:27:06,720 --> 00:27:10,679
Speaker 1: so confusing is because the names can sound almost the

602
00:27:10,720 --> 00:27:13,240
Speaker 1: exact same, but these accounts are totally different and they

603
00:27:13,280 --> 00:27:16,600
Speaker 1: function completely differently. Uh, F s A and h s

604
00:27:16,640 --> 00:27:18,400
Speaker 1: A accounts are not the same and they don't act

605
00:27:18,440 --> 00:27:20,760
Speaker 1: the same. So whereas the h s A is this

606
00:27:20,920 --> 00:27:24,120
Speaker 1: great long term investment account you should be sticking money

607
00:27:24,119 --> 00:27:26,680
Speaker 1: in there, investing it and letting it grow tax free

608
00:27:26,680 --> 00:27:29,480
Speaker 1: for your future, well, the the f s A is

609
00:27:29,560 --> 00:27:32,560
Speaker 1: only really good for paying for same year healthcare costs,

610
00:27:32,560 --> 00:27:34,720
Speaker 1: which is the exact opposite of what we want you

611
00:27:34,760 --> 00:27:37,239
Speaker 1: to do with an h s A. So instead of

612
00:27:37,640 --> 00:27:40,560
Speaker 1: investing for your future, UH, this account, the f s

613
00:27:40,640 --> 00:27:43,080
Speaker 1: A functions in a use it or lose it kind

614
00:27:43,080 --> 00:27:46,000
Speaker 1: of way. You're you're often allowed to roll at least

615
00:27:46,119 --> 00:27:49,800
Speaker 1: some of those unspent dollars into future years, typically a

616
00:27:49,840 --> 00:27:52,480
Speaker 1: few hundred bucks, although over the last couple of years

617
00:27:52,480 --> 00:27:55,520
Speaker 1: because of the pandemic, the rules were actually more lax

618
00:27:55,640 --> 00:27:58,080
Speaker 1: regarding F s A s. And that means that you

619
00:27:58,160 --> 00:28:00,680
Speaker 1: might actually have more money in your F s A

620
00:28:00,720 --> 00:28:03,720
Speaker 1: account than ever before because you've been allowed to roll

621
00:28:03,880 --> 00:28:07,040
Speaker 1: more money over than usual. You might have thousands of

622
00:28:07,080 --> 00:28:09,600
Speaker 1: dollars sitting in that account that you're not sure what

623
00:28:09,640 --> 00:28:11,600
Speaker 1: to do with. But the reality is you're bumping up

624
00:28:11,600 --> 00:28:14,280
Speaker 1: against another end of your deadline. That's right, Yeah, So

625
00:28:14,359 --> 00:28:15,880
Speaker 1: first what you need to do you need to figure

626
00:28:15,880 --> 00:28:18,200
Speaker 1: out how much money you've got left in this account,

627
00:28:18,600 --> 00:28:20,840
Speaker 1: and then after that you want to know what your

628
00:28:20,880 --> 00:28:24,119
Speaker 1: employers specific rules are, because some are going to have

629
00:28:24,200 --> 00:28:27,520
Speaker 1: a grace period, which means that you don't necessarily have

630
00:28:27,600 --> 00:28:29,720
Speaker 1: to spend all of those funds down until maybe in

631
00:28:29,760 --> 00:28:31,760
Speaker 1: the spring, like they'll give you a few months now.

632
00:28:31,800 --> 00:28:34,280
Speaker 1: Others have a rule stating that you've got to spend

633
00:28:34,280 --> 00:28:36,199
Speaker 1: it all by the end of the year December thirty one.

634
00:28:36,680 --> 00:28:39,560
Speaker 1: There's gonna be a hard deadline. Uh, there's a bunch

635
00:28:39,600 --> 00:28:41,240
Speaker 1: of them though, that will let you roll at least

636
00:28:41,280 --> 00:28:43,960
Speaker 1: some of those funds over to the next year. But regardless,

637
00:28:43,960 --> 00:28:47,080
Speaker 1: once you hit those employer deadlines whenever, it might be

638
00:28:47,320 --> 00:28:50,800
Speaker 1: any money that you've gotten there that exceeds those limits poof,

639
00:28:50,920 --> 00:28:53,360
Speaker 1: like it's just gonna completely vanish. It's money you say

640
00:28:53,560 --> 00:28:57,000
Speaker 1: that now goes away. Literally, it just disappears. So go ahead,

641
00:28:57,320 --> 00:29:00,440
Speaker 1: spend it on f s A eligible items. Few have

642
00:29:00,680 --> 00:29:03,160
Speaker 1: overfunded your f s A so you can stop stock

643
00:29:03,240 --> 00:29:06,720
Speaker 1: up on sunscreen, just medicine right like I doprofen um

644
00:29:06,760 --> 00:29:10,080
Speaker 1: contacts if you have to. Feminine hygiene products now qualify

645
00:29:10,240 --> 00:29:14,240
Speaker 1: as eligible expenses. And if you're not sure what is eligible,

646
00:29:14,280 --> 00:29:16,000
Speaker 1: you can find a list on the internet, or you

647
00:29:16,000 --> 00:29:19,720
Speaker 1: can just shop at f s A store dot Com. Amazon.

648
00:29:19,760 --> 00:29:21,840
Speaker 1: Actually they've got an f s A store as well,

649
00:29:21,880 --> 00:29:23,640
Speaker 1: and we'll make sure to link to both of those

650
00:29:23,680 --> 00:29:26,280
Speaker 1: in our show notes. All right, Matt, So, yeah, spending

651
00:29:26,320 --> 00:29:30,680
Speaker 1: those FSA dollars is important, whether it's a medical procedures

652
00:29:30,680 --> 00:29:33,480
Speaker 1: you've been putting off. If you've got money sitting around

653
00:29:33,560 --> 00:29:36,040
Speaker 1: lying in that account, you spend it right because you

654
00:29:36,040 --> 00:29:38,640
Speaker 1: don't want it to vanish or at least spend it

655
00:29:38,680 --> 00:29:41,120
Speaker 1: on a hundred bottles of sunscreen. Maybe maybe you can

656
00:29:41,160 --> 00:29:42,920
Speaker 1: like flip it and make a profit. I don't know,

657
00:29:43,080 --> 00:29:45,600
Speaker 1: but uh, I don't even know if that's allowed. But

658
00:29:45,960 --> 00:29:48,360
Speaker 1: something else that a lot of people are going to

659
00:29:48,400 --> 00:29:51,800
Speaker 1: want to consider as kind of a Q four money

660
00:29:51,840 --> 00:29:55,120
Speaker 1: goal that you you're gonna want to accomplish is filling

661
00:29:55,160 --> 00:30:00,560
Speaker 1: out the FAFSA. This is not a f s A. Yes,

662
00:30:01,520 --> 00:30:04,280
Speaker 1: so many abbreviations during this episode, and they all blend

663
00:30:04,320 --> 00:30:06,920
Speaker 1: together sadly, but everyone's sort of the FAFTSA. It's obviously

664
00:30:07,400 --> 00:30:12,760
Speaker 1: very different than these different health based savings and spending accounts.

665
00:30:12,800 --> 00:30:15,600
Speaker 1: But this one task, if you've got high school senior,

666
00:30:15,800 --> 00:30:18,920
Speaker 1: could save you a lot of money. And that's because, yeah,

667
00:30:18,960 --> 00:30:21,719
Speaker 1: if they're planning to go to college, your high school senior,

668
00:30:21,760 --> 00:30:24,920
Speaker 1: this should be a top priority because of all the

669
00:30:24,960 --> 00:30:28,160
Speaker 1: money that's at stake, even if you're a high incomer.

670
00:30:28,680 --> 00:30:31,080
Speaker 1: By filling out this FAFTA and and this one might

671
00:30:31,080 --> 00:30:35,360
Speaker 1: seem a bit premature since we're talking about the school year,

672
00:30:35,760 --> 00:30:38,280
Speaker 1: but the earlier you fill out the FAFSA and apply

673
00:30:38,920 --> 00:30:41,520
Speaker 1: to two schools, the more likely your child is going

674
00:30:41,560 --> 00:30:44,120
Speaker 1: to be to get financial aid. Oftentimes it's first come,

675
00:30:44,160 --> 00:30:46,080
Speaker 1: first served. You want to be first in line of

676
00:30:46,160 --> 00:30:49,720
Speaker 1: that buffet. Yeah, the all you can need the financial

677
00:30:49,720 --> 00:30:52,440
Speaker 1: rewards buffet that colleges are dishing out, Like, you want

678
00:30:52,440 --> 00:30:54,000
Speaker 1: to be first at that table, at the head of

679
00:30:54,000 --> 00:30:56,760
Speaker 1: the line, so that they're saying the offering their most

680
00:30:56,840 --> 00:31:00,640
Speaker 1: generous rewards packages to you, into your family, to your child. Yeah,

681
00:31:00,640 --> 00:31:01,920
Speaker 1: you don't want to be at the back of the line.

682
00:31:01,920 --> 00:31:03,520
Speaker 1: And by the time you get to the roast beef station,

683
00:31:03,600 --> 00:31:05,880
Speaker 1: the carving station, they're just out of meeting. Yeah, Like

684
00:31:06,120 --> 00:31:07,680
Speaker 1: all you see is like the fatty parts laying there

685
00:31:07,720 --> 00:31:09,520
Speaker 1: on the board, and you're just like your bombs like that.

686
00:31:09,680 --> 00:31:11,480
Speaker 1: That's that's no fun. And then you start a riot

687
00:31:11,480 --> 00:31:15,680
Speaker 1: and Golden Cross right starts throwing what kids seats are

688
00:31:15,680 --> 00:31:18,120
Speaker 1: all all around, hitting people in the head. Well, the

689
00:31:18,440 --> 00:31:20,080
Speaker 1: reality is the bord is not quite open yet, but

690
00:31:20,120 --> 00:31:22,560
Speaker 1: it opens on October one, and so you can just

691
00:31:22,600 --> 00:31:25,800
Speaker 1: head straight to FAFSA dot gov. And and also, by

692
00:31:25,800 --> 00:31:27,320
Speaker 1: the way, I wouldn't hurt to go back and listen

693
00:31:27,360 --> 00:31:30,000
Speaker 1: to episode three thirty seven that we did with Ron

694
00:31:30,080 --> 00:31:34,000
Speaker 1: Lieber New York Times columnists about paying less for your

695
00:31:34,040 --> 00:31:36,640
Speaker 1: college education. But if you're in this phase of life,

696
00:31:36,640 --> 00:31:38,080
Speaker 1: it's time to get up to speed and get that

697
00:31:38,120 --> 00:31:40,440
Speaker 1: fasts that completed. This is one of those things where

698
00:31:40,440 --> 00:31:42,840
Speaker 1: if you delay, you pay like it's gonna it's gonna

699
00:31:42,840 --> 00:31:45,240
Speaker 1: cost you money. You're not going to get the full

700
00:31:45,360 --> 00:31:47,360
Speaker 1: largest that some of these colleges have to offer. You

701
00:31:47,440 --> 00:31:49,280
Speaker 1: want to be at the top of the list. Even

702
00:31:49,280 --> 00:31:51,240
Speaker 1: filling it out, you know, at the beginning of the

703
00:31:51,280 --> 00:31:53,320
Speaker 1: new year, is gonna put you behind the eight ball

704
00:31:53,560 --> 00:31:56,480
Speaker 1: and and could cost you thousands of dollars. That's right, man. Yeah,

705
00:31:56,480 --> 00:31:59,440
Speaker 1: So we've already talked about maxing out retirement accounts, but

706
00:31:59,520 --> 00:32:03,520
Speaker 1: contribute more to your four owin K. It'll benefit you

707
00:32:03,600 --> 00:32:06,120
Speaker 1: from a tax standpoint as well. We didn't even touch

708
00:32:06,160 --> 00:32:08,400
Speaker 1: on that, and so we're gonna talk about that and

709
00:32:08,520 --> 00:32:10,840
Speaker 1: other smart tax moves that you should be thinking about.

710
00:32:11,040 --> 00:32:13,360
Speaker 1: We'll get to all of that right after this break.

711
00:32:22,520 --> 00:32:24,280
Speaker 1: All right, Matt. We have covered a lot of great

712
00:32:24,280 --> 00:32:27,760
Speaker 1: things already on the show that the financially savvy can

713
00:32:27,800 --> 00:32:30,240
Speaker 1: do even in the next ninety days in order to

714
00:32:30,640 --> 00:32:33,600
Speaker 1: get better with their money and more rapidly achieve their

715
00:32:33,600 --> 00:32:36,520
Speaker 1: financial goals. Have savings on hand to pay for upcoming

716
00:32:36,520 --> 00:32:39,880
Speaker 1: expenses and just maximize the money maybe that they've already

717
00:32:39,880 --> 00:32:42,960
Speaker 1: saved in something like n FSA. But let's talk about

718
00:32:43,000 --> 00:32:46,600
Speaker 1: taxes here in this last section, because that's that's something

719
00:32:46,600 --> 00:32:47,920
Speaker 1: else people want to do, Like, how do I in

720
00:32:47,920 --> 00:32:50,600
Speaker 1: the next ninety days make adjustments in order to lower

721
00:32:50,640 --> 00:32:54,680
Speaker 1: my tax bill for well, first things first, let's talk

722
00:32:54,680 --> 00:32:57,600
Speaker 1: about student loans because we we kind of touched on

723
00:32:57,680 --> 00:33:01,360
Speaker 1: this on a couple of Friday Flight episodes recently. But

724
00:33:01,400 --> 00:33:03,120
Speaker 1: if you're one of the tens of millions of people

725
00:33:03,160 --> 00:33:05,720
Speaker 1: who had a portion of their student loans forgiven recently,

726
00:33:06,120 --> 00:33:08,200
Speaker 1: I'm sure there was you know, some rejoicing in your household,

727
00:33:08,200 --> 00:33:10,360
Speaker 1: of course. But the good news is that you're not

728
00:33:10,400 --> 00:33:12,840
Speaker 1: going to have to worry about the I R S

729
00:33:12,920 --> 00:33:15,360
Speaker 1: howting you to pay taxes on the amount of debt

730
00:33:15,400 --> 00:33:17,320
Speaker 1: that you were forgiven. But while you're not going to

731
00:33:17,400 --> 00:33:20,600
Speaker 1: pay federal income tax on that forgiveness amount, depending on

732
00:33:20,640 --> 00:33:23,480
Speaker 1: which state you live in, you might be the recipient

733
00:33:23,520 --> 00:33:27,239
Speaker 1: of a bigger than usual tax bill coming from at

734
00:33:27,320 --> 00:33:29,760
Speaker 1: least from that angle. So they're close to a dozen

735
00:33:29,800 --> 00:33:31,880
Speaker 1: states who might be going this shroud. It's still up

736
00:33:31,880 --> 00:33:34,400
Speaker 1: in the air, but we would suggest that you start

737
00:33:34,440 --> 00:33:36,800
Speaker 1: planning for that. If you live in a state that

738
00:33:37,000 --> 00:33:40,520
Speaker 1: is opting to tax student loan forgiveness recipients, save up

739
00:33:40,640 --> 00:33:42,959
Speaker 1: now in order to pay those extra hundreds of dollars

740
00:33:42,960 --> 00:33:45,040
Speaker 1: you'll owe come tax time. You still come out ahead

741
00:33:45,320 --> 00:33:48,040
Speaker 1: if you were forgiven somewhere between ten and twenty dollars,

742
00:33:48,200 --> 00:33:49,719
Speaker 1: but you also might need to come out of pocket

743
00:33:50,000 --> 00:33:53,720
Speaker 1: with a few hundred dollars to meet that increased tax bill.

744
00:33:53,920 --> 00:33:55,240
Speaker 1: And you're just gonna want to be aware of that

745
00:33:55,320 --> 00:33:57,880
Speaker 1: upfront and be planning for it. Yeah, yeah, hey yeah. Also,

746
00:33:57,960 --> 00:34:00,520
Speaker 1: speaking of student loans, payments are set to resume when

747
00:34:00,640 --> 00:34:03,720
Speaker 1: the new year starts. Your budget it might not currently

748
00:34:03,760 --> 00:34:07,640
Speaker 1: include that recurring payment, which is completely understandable because it's

749
00:34:07,640 --> 00:34:10,520
Speaker 1: been a long long time since you've had to make

750
00:34:10,520 --> 00:34:12,080
Speaker 1: that payment. We were we were younger men with a

751
00:34:12,080 --> 00:34:14,200
Speaker 1: fewer gray hairs when loan payments were a thing, when

752
00:34:14,200 --> 00:34:17,600
Speaker 1: that was a reality. But it is unlikely that forbearance

753
00:34:17,680 --> 00:34:20,560
Speaker 1: is going to extend any further, so you're gonna want

754
00:34:20,600 --> 00:34:22,879
Speaker 1: to start you want to incorporate that payment back into

755
00:34:22,880 --> 00:34:26,040
Speaker 1: your budget. Fore, you've got a few months to get

756
00:34:26,080 --> 00:34:28,680
Speaker 1: adjusted to having it back in your life. We just

757
00:34:28,680 --> 00:34:30,839
Speaker 1: want to make sure that you are fully prepared for

758
00:34:30,960 --> 00:34:35,440
Speaker 1: the reality that is this likely substantial monthly bill that's

759
00:34:35,440 --> 00:34:38,400
Speaker 1: gonna come roaring back after years of being absent. We

760
00:34:38,440 --> 00:34:40,400
Speaker 1: would recommend you just start maybe trimming back now in

761
00:34:40,480 --> 00:34:42,360
Speaker 1: order to make room for it. You can even I

762
00:34:42,400 --> 00:34:44,839
Speaker 1: would carve that money off for savings or something, or

763
00:34:44,880 --> 00:34:49,480
Speaker 1: maybe like you didn't have a holiday gifts spending budget,

764
00:34:49,520 --> 00:34:52,360
Speaker 1: but do that now, start carving that money out. You

765
00:34:52,360 --> 00:34:54,239
Speaker 1: can put that money towards gifts at the end of

766
00:34:54,239 --> 00:34:57,200
Speaker 1: this year and then maintain that line atom once your

767
00:34:57,239 --> 00:35:00,239
Speaker 1: student loan kicks back in gear, while also maybe setting

768
00:35:00,239 --> 00:35:02,720
Speaker 1: aside a smaller monthly monthly amount that you are putting

769
00:35:02,719 --> 00:35:07,239
Speaker 1: aside four gifts for December. Yeah. The worst that could happen, though,

770
00:35:07,320 --> 00:35:09,680
Speaker 1: is to just be shocked when you when you get

771
00:35:09,719 --> 00:35:12,239
Speaker 1: that first, you're just frightened by it. Yeah, you're just

772
00:35:12,280 --> 00:35:14,400
Speaker 1: like what I did, I did alwaysn't planning on this,

773
00:35:15,120 --> 00:35:17,160
Speaker 1: And it's hundreds and hundreds and hundreds of dollars like

774
00:35:17,160 --> 00:35:18,440
Speaker 1: it could be for a lot of people. It's as

775
00:35:18,520 --> 00:35:21,120
Speaker 1: much as a car payment is. And uh, if you

776
00:35:21,400 --> 00:35:22,959
Speaker 1: also have a car payment, then you're in the worst

777
00:35:23,400 --> 00:35:26,040
Speaker 1: of both worlds. But yeah, planning for those student loans

778
00:35:26,040 --> 00:35:30,319
Speaker 1: to resume now right now is real smart, and Matt,

779
00:35:30,360 --> 00:35:32,400
Speaker 1: let's talk about it's just a couple of other tax

780
00:35:32,440 --> 00:35:34,400
Speaker 1: moves that people can make in order to have to

781
00:35:34,400 --> 00:35:37,239
Speaker 1: pay Uncle Sam less come April of next year for

782
00:35:38,160 --> 00:35:41,239
Speaker 1: two calendar year. And when we talk about maybe some

783
00:35:41,280 --> 00:35:42,640
Speaker 1: of the tax moves that we can make, some are

784
00:35:42,680 --> 00:35:46,280
Speaker 1: more straightforward, like contributing more to those retirement accounts. People

785
00:35:46,280 --> 00:35:48,719
Speaker 1: know that they're going to lower their A G I accordingly,

786
00:35:48,760 --> 00:35:50,920
Speaker 1: and then it's gonna that every dollar they put into

787
00:35:51,000 --> 00:35:53,879
Speaker 1: a traditional FORUMN K or a traditional I array is

788
00:35:53,960 --> 00:35:56,040
Speaker 1: going to benefit them come tax time. But let's get

789
00:35:56,080 --> 00:35:58,680
Speaker 1: a little bit nerdier and discuss a few strategies that

790
00:35:58,719 --> 00:36:00,440
Speaker 1: you can implement in the coming months to lower that

791
00:36:00,480 --> 00:36:03,920
Speaker 1: tax bill and maybe less obvious ways. Tax loss harvesting

792
00:36:04,160 --> 00:36:06,040
Speaker 1: is one of those things, and it's not something that

793
00:36:06,080 --> 00:36:07,920
Speaker 1: we talk about a lot on the show, but if

794
00:36:07,920 --> 00:36:11,280
Speaker 1: you're investing in inside of a brokerage account in addition

795
00:36:11,360 --> 00:36:14,279
Speaker 1: to the tax advantage retirement accounts that we discuss here

796
00:36:14,320 --> 00:36:16,640
Speaker 1: on how the money, it's likely because you're on the

797
00:36:16,640 --> 00:36:19,279
Speaker 1: ball right when it comes to that you're killing is yeah, Yeah,

798
00:36:19,360 --> 00:36:22,520
Speaker 1: you're you're being smart about your financial future, and you're saying,

799
00:36:22,560 --> 00:36:25,240
Speaker 1: not only Mike going to prioritize these tax advantage accounts,

800
00:36:25,320 --> 00:36:26,920
Speaker 1: I'm also going to sack some money away in these

801
00:36:26,960 --> 00:36:30,760
Speaker 1: more flexible brokerage accounts that are available to me too.

802
00:36:31,160 --> 00:36:32,719
Speaker 1: You're you're trying to grow your money in all the

803
00:36:32,719 --> 00:36:34,920
Speaker 1: ways that you possibly can, basically, and and so that

804
00:36:35,000 --> 00:36:37,759
Speaker 1: means you might want to take advantage of some tax

805
00:36:37,800 --> 00:36:41,080
Speaker 1: loss harvesting. While your investments might be sagging just a

806
00:36:41,120 --> 00:36:42,440
Speaker 1: little bit, they're not this is a good time of

807
00:36:42,440 --> 00:36:44,440
Speaker 1: the year to talk about this as well. They're not

808
00:36:44,480 --> 00:36:46,839
Speaker 1: doing as good lately, and so, yeah, you might want

809
00:36:46,840 --> 00:36:49,640
Speaker 1: to take advantage of tax loss harvesting, which is basically

810
00:36:49,680 --> 00:36:53,440
Speaker 1: making lemonade out of some lemons you've been dealt. The

811
00:36:53,480 --> 00:36:56,239
Speaker 1: way that works is that you simply sell a security

812
00:36:56,400 --> 00:36:58,200
Speaker 1: like a stock or an e t F at a

813
00:36:58,280 --> 00:37:01,840
Speaker 1: loss in order to lock in capital losses. And you

814
00:37:01,920 --> 00:37:04,480
Speaker 1: might be saying, sell at a loss, that is something

815
00:37:04,560 --> 00:37:06,120
Speaker 1: you guys advice against. You guys want me to be

816
00:37:06,120 --> 00:37:08,520
Speaker 1: in it for the long haul, and that's true. But

817
00:37:09,080 --> 00:37:11,680
Speaker 1: you're you're then able to to use this lost offset

818
00:37:11,719 --> 00:37:14,319
Speaker 1: any gains that your portfolio may have experience, you're making

819
00:37:14,320 --> 00:37:17,279
Speaker 1: a crappy situation a little bit better. You're harvesting that

820
00:37:17,360 --> 00:37:19,960
Speaker 1: tax loss and putting it to use. And Matt, can

821
00:37:20,000 --> 00:37:23,040
Speaker 1: you actually tell our listeners how they can take advantage

822
00:37:23,040 --> 00:37:26,840
Speaker 1: of tax loss harvesting getting the tax benefit without necessarily

823
00:37:26,840 --> 00:37:29,560
Speaker 1: locking in those losses. Yeah. So, so the details, you

824
00:37:29,640 --> 00:37:32,640
Speaker 1: are only limited to three thousand dollars of tax los

825
00:37:32,680 --> 00:37:35,239
Speaker 1: harvesting per year um. But the good news, right, if

826
00:37:35,239 --> 00:37:38,000
Speaker 1: you've got more than that in losses, you can roll

827
00:37:38,040 --> 00:37:41,080
Speaker 1: the additional amount forward to apply to future years. Uh.

828
00:37:41,160 --> 00:37:43,000
Speaker 1: And what's really cool too as well as you can

829
00:37:43,000 --> 00:37:46,360
Speaker 1: do this indefinitely because those capital losses they never expire.

830
00:37:47,520 --> 00:37:50,400
Speaker 1: But many of us aren't interested in drawing down on

831
00:37:50,440 --> 00:37:53,600
Speaker 1: our portfolios, right, like we are investing for the long haul. Uh.

832
00:37:53,640 --> 00:37:55,839
Speaker 1: And so luckily there's a way to take advantage of

833
00:37:55,920 --> 00:37:59,680
Speaker 1: tax lost harvesting while at the same time remaining invested.

834
00:38:00,160 --> 00:38:02,520
Speaker 1: And the trick is to do this without breaking the

835
00:38:02,560 --> 00:38:05,759
Speaker 1: wash sale rule, which so we had to find that

836
00:38:05,880 --> 00:38:07,879
Speaker 1: as well. According to the I r S, a wash

837
00:38:07,920 --> 00:38:10,160
Speaker 1: sale occurs when you sell at a loss and then

838
00:38:10,200 --> 00:38:13,560
Speaker 1: repurchase the same security or something that's substantially similar within

839
00:38:13,640 --> 00:38:16,319
Speaker 1: thirty days. But the simple way around this is to

840
00:38:16,360 --> 00:38:19,680
Speaker 1: buy something that the I r S considers different enough.

841
00:38:19,880 --> 00:38:22,880
Speaker 1: And so, for example, let's say that you decided to

842
00:38:22,960 --> 00:38:26,560
Speaker 1: sell some of your SMP five index fund. So that's great,

843
00:38:26,640 --> 00:38:28,719
Speaker 1: you were able to lock in those losses, but then

844
00:38:28,760 --> 00:38:30,960
Speaker 1: you're going to rebuy so that you stay invested. But

845
00:38:31,000 --> 00:38:35,040
Speaker 1: instead of repurchasing an SMP five index fund, instead, you

846
00:38:35,080 --> 00:38:37,920
Speaker 1: can look at something like a total stock market index fund.

847
00:38:38,160 --> 00:38:41,279
Speaker 1: I literally did just this earlier this summer. And what's

848
00:38:41,280 --> 00:38:44,279
Speaker 1: crazy is that to you it looks the same, right.

849
00:38:44,640 --> 00:38:48,520
Speaker 1: For like, the function returns are incredibly similar funds because

850
00:38:48,960 --> 00:38:51,560
Speaker 1: they're pretty they're they're like they're twin siblings basically, but

851
00:38:51,600 --> 00:38:54,160
Speaker 1: they're yeah, they're very similar to to the purposes that

852
00:38:54,200 --> 00:38:56,759
Speaker 1: they serve within my portfolio, they're still to the I

853
00:38:56,960 --> 00:39:01,120
Speaker 1: r S, they are very different because they track very

854
00:39:01,160 --> 00:39:03,640
Speaker 1: different things. Uh. And so that's a small example. I'm

855
00:39:03,640 --> 00:39:05,560
Speaker 1: also gonna do a little c O A and say,

856
00:39:05,600 --> 00:39:10,120
Speaker 1: we are not tax professionals, and there are some tricky nuances,

857
00:39:10,200 --> 00:39:12,080
Speaker 1: and so we would recommend that you reach out to

858
00:39:12,160 --> 00:39:15,080
Speaker 1: a tax professional if this is something that you're considering,

859
00:39:15,360 --> 00:39:17,720
Speaker 1: or if you have a more complicated situation, but basically

860
00:39:17,760 --> 00:39:20,239
Speaker 1: that is how tax loss harvesting works, and that's how

861
00:39:20,360 --> 00:39:23,319
Speaker 1: you are able to do it without violating that that

862
00:39:23,640 --> 00:39:25,560
Speaker 1: the Washdale rule, all right, I like it no way

863
00:39:25,600 --> 00:39:29,680
Speaker 1: to to potentially get claim thousands of dollars of loss

864
00:39:29,840 --> 00:39:33,200
Speaker 1: on your tax return, substantially reducing the amount of tax

865
00:39:33,239 --> 00:39:36,279
Speaker 1: you oh, while still kind of maintaining the same long

866
00:39:36,360 --> 00:39:39,759
Speaker 1: term investment thesis not having to violate that and exactly

867
00:39:39,800 --> 00:39:42,359
Speaker 1: sell out of things and then kind of cash out right.

868
00:39:42,520 --> 00:39:46,560
Speaker 1: And one cool thing to crypto actually, uh is not regulated,

869
00:39:46,680 --> 00:39:49,360
Speaker 1: Like the wash sale rule does not apply to cryptocurrencies,

870
00:39:49,360 --> 00:39:52,480
Speaker 1: and so if you like us, we're like, let me,

871
00:39:52,560 --> 00:39:56,120
Speaker 1: you know, let's put a very very small amounts into crypto.

872
00:39:56,239 --> 00:39:59,359
Speaker 1: And regardless of whatever crypto coin you've invested in, you've

873
00:39:59,400 --> 00:40:03,680
Speaker 1: seen that on it drastically because they all have um,

874
00:40:03,760 --> 00:40:06,120
Speaker 1: the the Washdaild rule does not apply to crypto, and

875
00:40:06,160 --> 00:40:09,080
Speaker 1: so what you could quite literally do sell it, locking

876
00:40:09,120 --> 00:40:12,680
Speaker 1: those losses, repurchase that exact same coin. You'll be able

877
00:40:12,719 --> 00:40:15,880
Speaker 1: to take advantage of that tax loss harvesting while simultaneously

878
00:40:15,920 --> 00:40:18,120
Speaker 1: not violating any I R. S rules. So that's something

879
00:40:18,280 --> 00:40:20,200
Speaker 1: to keep in mind that might change holding onto the

880
00:40:20,239 --> 00:40:23,920
Speaker 1: same amount of whatever cryptocurrency you were already invested, so

881
00:40:23,960 --> 00:40:26,560
Speaker 1: effectively everything is the same um and this might change

882
00:40:26,560 --> 00:40:28,880
Speaker 1: in the future. So the irs that they haven't at

883
00:40:28,880 --> 00:40:31,680
Speaker 1: the time of this recording have not addressed crypto. They

884
00:40:31,719 --> 00:40:33,399
Speaker 1: if they were talking about doing it and last year

885
00:40:33,440 --> 00:40:35,520
Speaker 1: they didn't get around to it. They consider it, I

886
00:40:35,560 --> 00:40:38,560
Speaker 1: think property. It's not considered a security yet, but that

887
00:40:38,640 --> 00:40:40,520
Speaker 1: might change in the future for sure. All right, let's

888
00:40:40,520 --> 00:40:42,800
Speaker 1: talk about something else, Matt, because we talked about retirement accounts,

889
00:40:42,800 --> 00:40:44,920
Speaker 1: but there's another thing you can do with your retirement

890
00:40:44,920 --> 00:40:48,319
Speaker 1: accounts that can benefit you from a tax standpoint, and

891
00:40:48,360 --> 00:40:50,560
Speaker 1: it's it's even more about relevant right now, and that's

892
00:40:51,000 --> 00:40:54,239
Speaker 1: attempting a roth conversion. And the funny thing is this

893
00:40:54,320 --> 00:40:58,279
Speaker 1: is actually going to increase your taxable income for two

894
00:40:58,360 --> 00:41:00,560
Speaker 1: if you opt to go this route. But does that

895
00:41:00,600 --> 00:41:03,400
Speaker 1: mean that we're smoking something because we just recommended something

896
00:41:03,400 --> 00:41:05,640
Speaker 1: that's like actually going to increase people's taxes. The whole

897
00:41:05,640 --> 00:41:08,480
Speaker 1: goal is for people to pay less in taxes, right

898
00:41:08,520 --> 00:41:11,279
Speaker 1: and and find strategies to ensure they're able to do

899
00:41:11,320 --> 00:41:13,680
Speaker 1: that over the next ninety days. We would say no,

900
00:41:13,960 --> 00:41:17,640
Speaker 1: because what we are all about is your holistic ability

901
00:41:17,800 --> 00:41:22,200
Speaker 1: to pay less tax over your entire lifetime. And so yeah,

902
00:41:22,239 --> 00:41:25,719
Speaker 1: we if you save more in taxes just this year,

903
00:41:26,000 --> 00:41:29,040
Speaker 1: but it leads to a larger tax burden for years

904
00:41:29,040 --> 00:41:31,000
Speaker 1: to come, that's not a good move. You want to

905
00:41:31,000 --> 00:41:33,640
Speaker 1: think about it all the way through. And so yeah,

906
00:41:33,760 --> 00:41:37,240
Speaker 1: a bigger tax bill might be just what the doctor

907
00:41:37,360 --> 00:41:40,000
Speaker 1: ordered in order to allow you to curb tax bills

908
00:41:40,080 --> 00:41:42,480
Speaker 1: moving forward. And the truth is that a Wrath conversion

909
00:41:42,520 --> 00:41:45,640
Speaker 1: it doesn't make sense for everyone really when you the

910
00:41:45,640 --> 00:41:48,600
Speaker 1: factors you have to consider. So much depends on how

911
00:41:48,680 --> 00:41:50,879
Speaker 1: much money you've got stashed away inside of an old

912
00:41:50,880 --> 00:41:53,440
Speaker 1: four oh one K or inside of a traditional I RA.

913
00:41:54,000 --> 00:41:56,560
Speaker 1: It depends on how much money you currently make and

914
00:41:56,600 --> 00:41:59,600
Speaker 1: how much you've got on hand in savings. You're gonna

915
00:41:59,600 --> 00:42:01,560
Speaker 1: want to do your due diligence and consider all those

916
00:42:01,560 --> 00:42:04,960
Speaker 1: factors before you say, cool Roth conversion. It is. But

917
00:42:05,400 --> 00:42:07,399
Speaker 1: for some folks, Matt, it could make a lot of sense,

918
00:42:07,400 --> 00:42:11,120
Speaker 1: and it could dramatically reduce future tax liability. Yeah. For instance,

919
00:42:11,120 --> 00:42:13,400
Speaker 1: another scenario, if you find yourself in a lower tax

920
00:42:13,400 --> 00:42:15,759
Speaker 1: bracket and you still have the cash on hand to

921
00:42:15,760 --> 00:42:19,080
Speaker 1: pay the tax bill when you file, converting your traditional

922
00:42:19,120 --> 00:42:21,880
Speaker 1: retirement account over to a Roth ira A. It could

923
00:42:21,880 --> 00:42:24,560
Speaker 1: be the perfect move for you to consider, especially since

924
00:42:24,640 --> 00:42:27,000
Speaker 1: if you know you haven't noticed again the market hasn't

925
00:42:27,040 --> 00:42:28,960
Speaker 1: been doing so hot this year. This is one of

926
00:42:29,000 --> 00:42:33,080
Speaker 1: those one of those bigger moves, and assessing your specific

927
00:42:33,160 --> 00:42:36,200
Speaker 1: financial situation, it's really important before you pull the trigger.

928
00:42:36,880 --> 00:42:38,600
Speaker 1: You can certainly read up on it. You can figure

929
00:42:38,600 --> 00:42:40,359
Speaker 1: out whether or not this is the right move for you.

930
00:42:40,400 --> 00:42:43,520
Speaker 1: But again, it might make sense to maybe pay for

931
00:42:43,560 --> 00:42:46,319
Speaker 1: a little bit of time with a fee only financial advisor.

932
00:42:46,480 --> 00:42:48,560
Speaker 1: That again would be something that we would recommend you

933
00:42:48,600 --> 00:42:52,719
Speaker 1: do before you completely upend your retirement accounts and offer

934
00:42:52,760 --> 00:42:54,440
Speaker 1: something different. Yeah, and it's not that you can't d

935
00:42:54,520 --> 00:42:56,000
Speaker 1: I why this is just that there's a lot of

936
00:42:56,040 --> 00:42:58,759
Speaker 1: complexity to it, and if you do something, it can't

937
00:42:58,760 --> 00:43:02,759
Speaker 1: be undone and it can have catastrophic tax consequences, And

938
00:43:02,800 --> 00:43:04,880
Speaker 1: so you might want to talk to somebody who's familiar

939
00:43:04,920 --> 00:43:07,160
Speaker 1: with these things before you just say cool, I know

940
00:43:07,400 --> 00:43:09,879
Speaker 1: very very little amount. Matt and Joel said, a Roth

941
00:43:09,920 --> 00:43:11,719
Speaker 1: conversion is a smart move for me for me to

942
00:43:11,760 --> 00:43:13,759
Speaker 1: make or to consider at least, But I'm just gonna

943
00:43:13,760 --> 00:43:16,840
Speaker 1: go ahead and do it because those guys are right right, Well, no,

944
00:43:17,040 --> 00:43:19,040
Speaker 1: this is a complex maneuver, and you want to make

945
00:43:19,040 --> 00:43:22,280
Speaker 1: sure you're doing it properly so that you're not taking

946
00:43:22,520 --> 00:43:25,279
Speaker 1: a tax bullet right now that should be pushed further

947
00:43:25,320 --> 00:43:28,080
Speaker 1: down the road exactly. Um, And so yeah, think it

948
00:43:28,160 --> 00:43:30,919
Speaker 1: through and maybe talk to an expert before you kind

949
00:43:30,960 --> 00:43:33,960
Speaker 1: of get the ball rolling. And let's talk about something else, Matt,

950
00:43:34,000 --> 00:43:35,919
Speaker 1: that people need to consider before the end of year,

951
00:43:35,960 --> 00:43:39,040
Speaker 1: and that is giving money away. Now is just a

952
00:43:39,080 --> 00:43:41,759
Speaker 1: great time for people to start thinking about money that

953
00:43:41,800 --> 00:43:44,719
Speaker 1: they want to give to nonprofit organizations that they care about.

954
00:43:45,280 --> 00:43:48,280
Speaker 1: I personally, I like to plan those donations out across

955
00:43:48,320 --> 00:43:51,160
Speaker 1: the year instead of doing lumps home donations. And if

956
00:43:51,200 --> 00:43:53,640
Speaker 1: you're giving it all away in Q. Four, but if

957
00:43:53,680 --> 00:43:55,920
Speaker 1: you've been meaning to donate and you haven't yet, we

958
00:43:55,920 --> 00:43:57,799
Speaker 1: would say to start thinking about that now, start thinking

959
00:43:57,840 --> 00:43:59,759
Speaker 1: about how you can make it happen. You've still got

960
00:44:00,120 --> 00:44:03,400
Speaker 1: the plan for your giving, for your giving goals without

961
00:44:03,400 --> 00:44:06,600
Speaker 1: crushing your ability to meet other goals. The truth is

962
00:44:06,719 --> 00:44:09,960
Speaker 1: that a vast majority of folks, they take the standard deduction,

963
00:44:10,040 --> 00:44:13,359
Speaker 1: something like Americans, Matt, take the standard deduction, and so

964
00:44:13,480 --> 00:44:16,360
Speaker 1: giving money away isn't going to impact their tax liability.

965
00:44:16,680 --> 00:44:18,440
Speaker 1: Uh that so there's no tax benefit to giving that

966
00:44:18,480 --> 00:44:21,239
Speaker 1: money away for a lot of people. But knowing your

967
00:44:21,320 --> 00:44:24,200
Speaker 1: specific situation is important on this one too, because let's

968
00:44:24,239 --> 00:44:26,239
Speaker 1: say you do itemized deductions, it is going to be

969
00:44:26,239 --> 00:44:28,960
Speaker 1: a benefit to your bottom line from a tax perspective.

970
00:44:29,160 --> 00:44:31,680
Speaker 1: Either way, we'd say giving your money away is a

971
00:44:31,680 --> 00:44:34,320
Speaker 1: good thing, right, It's good for us to be parted

972
00:44:34,360 --> 00:44:36,680
Speaker 1: from our money, sending our money off to do good

973
00:44:36,680 --> 00:44:39,080
Speaker 1: in the world with organizations that we care about, doing

974
00:44:39,080 --> 00:44:41,239
Speaker 1: work that we care about. Plus, we think that it

975
00:44:41,280 --> 00:44:44,440
Speaker 1: helps lessen our overall attachment to our money, helping us

976
00:44:45,239 --> 00:44:48,560
Speaker 1: reinforcing the fact that it is a tool to do

977
00:44:48,600 --> 00:44:50,719
Speaker 1: good things and it's not just something to accumulate and

978
00:44:50,760 --> 00:44:53,360
Speaker 1: then hoard exactly. Yeah, it keeps us from from living

979
00:44:53,440 --> 00:44:56,440
Speaker 1: like that miserly existence where we are just holding and

980
00:44:56,560 --> 00:45:00,000
Speaker 1: being greedy and just you know, sharing up our retirement account.

981
00:45:00,320 --> 00:45:02,360
Speaker 1: We like to kind of maintain that that posture of

982
00:45:02,360 --> 00:45:04,560
Speaker 1: openness when it comes to the money, and like I

983
00:45:04,600 --> 00:45:06,600
Speaker 1: mean money that we feel that we've been that's been

984
00:45:06,600 --> 00:45:08,719
Speaker 1: given to us to steward. Right, Like, whether you're you're

985
00:45:08,719 --> 00:45:11,759
Speaker 1: someone who has faith, who believes in God, that this

986
00:45:11,800 --> 00:45:13,920
Speaker 1: is money that that you've received from God, or if

987
00:45:13,960 --> 00:45:16,440
Speaker 1: you believe that like this is money like from the universe.

988
00:45:16,480 --> 00:45:19,600
Speaker 1: I like either way, it's a good practice to give

989
00:45:19,640 --> 00:45:21,759
Speaker 1: your money away. And Joel, you know Winston Churchill, he's

990
00:45:21,760 --> 00:45:24,319
Speaker 1: famous for the phrase I think it's home. Actually, I

991
00:45:24,320 --> 00:45:28,040
Speaker 1: feel like there's a lot of misattributed quotes. Mammanual is

992
00:45:28,040 --> 00:45:30,440
Speaker 1: the other one who said this. Yes, uh, don't let

993
00:45:30,440 --> 00:45:33,399
Speaker 1: a good crisis go to waste. And what I think

994
00:45:33,440 --> 00:45:37,240
Speaker 1: Churchill meant by that was to turn a crisis into action.

995
00:45:37,280 --> 00:45:41,560
Speaker 1: Taking that crisis should lead to long lasting change that

996
00:45:41,600 --> 00:45:45,280
Speaker 1: goes that goes beyond the solving of just the immediate emergency.

997
00:45:45,560 --> 00:45:47,720
Speaker 1: And so piggybacking on that, we'd say that you shouldn't

998
00:45:47,800 --> 00:45:50,840
Speaker 1: let a good deadline go to waste. We are you

999
00:45:50,840 --> 00:45:53,680
Speaker 1: know again, we've got three months to go, and instead

1000
00:45:53,719 --> 00:45:56,360
Speaker 1: we want to let this looming deadline the end of

1001
00:45:56,360 --> 00:45:58,439
Speaker 1: the year. We want it to motivate you to take

1002
00:45:58,480 --> 00:46:00,719
Speaker 1: action in order to to lower your hacks bill right,

1003
00:46:00,840 --> 00:46:03,640
Speaker 1: in order to increase your investing, or even something as

1004
00:46:03,680 --> 00:46:06,120
Speaker 1: simple as just selling some of the just additional crap

1005
00:46:06,160 --> 00:46:08,480
Speaker 1: you've got in your garage. You've you've got over three

1006
00:46:08,520 --> 00:46:11,520
Speaker 1: months left two and we want this episode to prompt

1007
00:46:11,560 --> 00:46:15,000
Speaker 1: you to accomplish more than you otherwise would have been

1008
00:46:15,040 --> 00:46:17,279
Speaker 1: able to do. We want, we want this episode to

1009
00:46:17,320 --> 00:46:20,000
Speaker 1: be the warning light on your dashboard, fire under your butt,

1010
00:46:20,520 --> 00:46:23,480
Speaker 1: exactly so that you're able to accomplish more with the

1011
00:46:23,520 --> 00:46:26,879
Speaker 1: remaining time that you've got this year exactly. So, all right, Matt,

1012
00:46:26,960 --> 00:46:28,319
Speaker 1: let's let's get back to the beer that we had

1013
00:46:28,320 --> 00:46:31,600
Speaker 1: on this episode. This one is called Pickle down Economics.

1014
00:46:31,640 --> 00:46:35,560
Speaker 1: It's by Boss Brewing, and yeah, it's a pickle goes

1015
00:46:35,560 --> 00:46:38,279
Speaker 1: with pickles in it, right, goes with pickles. Yeah, it's

1016
00:46:38,280 --> 00:46:41,480
Speaker 1: all off pickle Lover's Pickle Down Economics is a briany

1017
00:46:41,520 --> 00:46:44,839
Speaker 1: goza that I'll bring a pucker to your face. It's

1018
00:46:44,840 --> 00:46:46,759
Speaker 1: got a bunch of other descriptions here. It says it's

1019
00:46:46,760 --> 00:46:50,359
Speaker 1: got gallons and gallons of dill juice. What you can

1020
00:46:50,400 --> 00:46:53,960
Speaker 1: totally and you can definitely taste it in the beer.

1021
00:46:54,080 --> 00:46:56,920
Speaker 1: I've definitely never had a beer that was that that.

1022
00:46:57,160 --> 00:46:58,879
Speaker 1: I mean, it tastes like you're it's like a wide

1023
00:46:58,880 --> 00:47:01,440
Speaker 1: mouth pickle jar and it's all the pickles are gone.

1024
00:47:01,920 --> 00:47:03,800
Speaker 1: You pull the jar out of the fridge, you twist

1025
00:47:03,800 --> 00:47:07,520
Speaker 1: the top off and just start drinking. That's what this

1026
00:47:07,600 --> 00:47:09,680
Speaker 1: beer is like. And so, Joel, did you like it?

1027
00:47:09,719 --> 00:47:11,919
Speaker 1: And I'm just gonna be honest, You've got a lot

1028
00:47:12,000 --> 00:47:13,759
Speaker 1: of your beer loough. I took three STIPs and I

1029
00:47:13,880 --> 00:47:16,440
Speaker 1: just puckered hard every time. It's not just because it

1030
00:47:16,480 --> 00:47:20,840
Speaker 1: was too sour. It's just because pickle juice. Is it

1031
00:47:20,880 --> 00:47:24,080
Speaker 1: disgusting flavor? You don't like, bill, not really all you pickle,

1032
00:47:24,160 --> 00:47:26,759
Speaker 1: but like pickled juice is the most raw form of

1033
00:47:26,760 --> 00:47:29,360
Speaker 1: a pickle. And it's I don't know, man to Vinegary,

1034
00:47:29,800 --> 00:47:32,880
Speaker 1: it's it's not my jam. I love sour beers. I

1035
00:47:32,960 --> 00:47:36,320
Speaker 1: kind of like pickles, but pickle in my beer. Sorry,

1036
00:47:36,520 --> 00:47:39,439
Speaker 1: not my jam. I appreciate Bob giving us this beer,

1037
00:47:39,480 --> 00:47:41,799
Speaker 1: and I'm so stoked we tried it because I've never

1038
00:47:41,880 --> 00:47:44,560
Speaker 1: had this is a pretty unique beer. I don't know

1039
00:47:44,560 --> 00:47:46,759
Speaker 1: if I've ever had a pickle based beer before, but

1040
00:47:46,880 --> 00:47:51,160
Speaker 1: I hope they never have another one. Well, you told

1041
00:47:51,160 --> 00:47:54,120
Speaker 1: me your your story about you. A friend told you.

1042
00:47:54,239 --> 00:47:55,719
Speaker 1: He told me the pickle juice was a hangover. He

1043
00:47:55,880 --> 00:47:57,920
Speaker 1: was like a hangover cure. So you've got bad memories

1044
00:47:58,280 --> 00:48:00,840
Speaker 1: of being in college and he was like just chugged

1045
00:48:01,000 --> 00:48:02,640
Speaker 1: throwing some of that back, and I was like that,

1046
00:48:03,239 --> 00:48:06,719
Speaker 1: I can see how you would associate that with I

1047
00:48:06,840 --> 00:48:08,600
Speaker 1: drink more of mine. I don't want to drink like

1048
00:48:08,680 --> 00:48:11,239
Speaker 1: five ace of my glass here um. But even still,

1049
00:48:11,320 --> 00:48:13,360
Speaker 1: once I got closer to the bottom, there's a certain

1050
00:48:13,400 --> 00:48:16,480
Speaker 1: amount of palette fatigue. Even though I do like that

1051
00:48:16,480 --> 00:48:19,560
Speaker 1: that sourness, that that pucker. I'm a fan of Dill

1052
00:48:19,880 --> 00:48:22,120
Speaker 1: for sure, But honestly, I'm just glad that there's a

1053
00:48:22,120 --> 00:48:23,960
Speaker 1: brewery out there who decided to make a beer like

1054
00:48:24,000 --> 00:48:25,560
Speaker 1: this because they thought, you know what, We're just gonna

1055
00:48:25,600 --> 00:48:28,040
Speaker 1: do something different than what everybody else is doing out there.

1056
00:48:28,160 --> 00:48:30,799
Speaker 1: Plus we're gonna give it a dope name, a nerdy name.

1057
00:48:30,840 --> 00:48:33,920
Speaker 1: Regardless if you feel that this is a true principle

1058
00:48:34,080 --> 00:48:36,240
Speaker 1: or not. I'd be curious to hear from a true

1059
00:48:36,239 --> 00:48:38,600
Speaker 1: pickle over what they think of this beer, someone who

1060
00:48:38,600 --> 00:48:40,279
Speaker 1: truly loves pickles and beer. I would think this would

1061
00:48:40,280 --> 00:48:42,720
Speaker 1: be right to more of these, because Kate loves pickles.

1062
00:48:42,840 --> 00:48:45,600
Speaker 1: Ye have another one next, I'll take home Kate. I

1063
00:48:45,640 --> 00:48:48,000
Speaker 1: bet Kate will love it. Okay, we'll get her review

1064
00:48:48,040 --> 00:48:49,640
Speaker 1: on the show, so she might have a different feeling.

1065
00:48:49,920 --> 00:48:51,880
Speaker 1: But again, big thanks to Bob and his wife for

1066
00:48:51,960 --> 00:48:53,680
Speaker 1: doning this beer. By the way, it was fun to

1067
00:48:53,680 --> 00:48:55,600
Speaker 1: try something new for sure. All Right, that's gonna do

1068
00:48:55,600 --> 00:48:58,200
Speaker 1: it for this episode, and you can find show notes

1069
00:48:58,239 --> 00:49:00,880
Speaker 1: links to some of the resources is that we mentioned

1070
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Speaker 1: in this episode up on our site at how to

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Speaker 1: money dot com. That's right, buddy, So that's going to

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Speaker 1: be it until next time. Best Friends Out, Best Friends Out.