1
00:00:00,120 --> 00:00:03,400
Speaker 1: Welcome to Had of Money. I'm Joel and I am Matt,

2
00:00:03,480 --> 00:00:05,960
Speaker 1: and today we are answering your listener questions.

3
00:00:25,720 --> 00:00:29,320
Speaker 2: That's right, buddy, This is a listener Questions Monday episode

4
00:00:29,320 --> 00:00:31,280
Speaker 2: that we've got lined up for you. We hope everybody

5
00:00:31,280 --> 00:00:33,880
Speaker 2: out there had a wonderful weekend, but we've got five

6
00:00:34,120 --> 00:00:36,920
Speaker 2: awesome questions to get to. A listener is wondering if

7
00:00:37,520 --> 00:00:41,120
Speaker 2: the work provided life insurance that her and her husband receive,

8
00:00:41,360 --> 00:00:43,400
Speaker 2: if that's going to be enough. We're going to talk

9
00:00:43,440 --> 00:00:46,120
Speaker 2: about that. Another listener is he's got a four to

10
00:00:46,200 --> 00:00:49,360
Speaker 2: one K true up option. That's something that is offered,

11
00:00:49,400 --> 00:00:51,559
Speaker 2: but he wants to know if this actually means that

12
00:00:51,600 --> 00:00:54,400
Speaker 2: he's not leaving money on the table, not tune up,

13
00:00:54,400 --> 00:00:56,360
Speaker 2: but true up true. We'll get into did I say

14
00:00:56,400 --> 00:00:56,720
Speaker 2: true up?

15
00:00:56,800 --> 00:00:57,000
Speaker 3: No?

16
00:00:56,800 --> 00:00:58,800
Speaker 1: No, you said true But I know people might hear

17
00:00:58,800 --> 00:01:00,000
Speaker 1: that and they're like, I don't even know what that is.

18
00:01:00,120 --> 00:01:02,639
Speaker 2: We'll talk about that, and then another listener she is

19
00:01:02,920 --> 00:01:05,280
Speaker 2: selling her house or she wants to, and she's wondering

20
00:01:05,640 --> 00:01:09,240
Speaker 2: if she should go the take the iebuyer route. So

21
00:01:09,440 --> 00:01:11,800
Speaker 2: we've got that question plus a couple of others on

22
00:01:12,000 --> 00:01:13,080
Speaker 2: today's episode.

23
00:01:13,120 --> 00:01:14,720
Speaker 1: All right, before we get to that. Man, I wanted

24
00:01:14,760 --> 00:01:18,560
Speaker 1: to quickly mentioned, have you heard of EU two six one.

25
00:01:18,720 --> 00:01:22,240
Speaker 1: It's a law in the new COVID variance that sounds

26
00:01:22,280 --> 00:01:24,600
Speaker 1: like no, although I can see why you said that. No,

27
00:01:24,680 --> 00:01:28,960
Speaker 1: but there's BA two six one. But so this is

28
00:01:29,560 --> 00:01:33,360
Speaker 1: a law in Europe that basically says that you get

29
00:01:33,360 --> 00:01:36,759
Speaker 1: paid if a flight is delayed or canceled and by

30
00:01:36,800 --> 00:01:38,600
Speaker 1: a certain by a certain amount of time. So there's

31
00:01:38,640 --> 00:01:41,520
Speaker 1: different rules about got that euro European feel to it?

32
00:01:41,640 --> 00:01:42,000
Speaker 2: EU?

33
00:01:42,520 --> 00:01:47,160
Speaker 1: Okay, yeah, exactly. And so there were a couple people

34
00:01:47,160 --> 00:01:50,600
Speaker 1: in my life recently who mentioned flight cancelations on a

35
00:01:50,640 --> 00:01:54,560
Speaker 1: trip to or from Europe, or at least a substantial delay,

36
00:01:54,880 --> 00:01:57,280
Speaker 1: and I was like, hey, you might want to check

37
00:01:57,360 --> 00:02:00,200
Speaker 1: this out and file acclaim with the airline because.

38
00:02:00,520 --> 00:02:01,920
Speaker 2: You might be entitled the compensation.

39
00:02:02,200 --> 00:02:04,080
Speaker 1: And you're like, oh, yeah, what twenty thirty bucks And

40
00:02:04,080 --> 00:02:06,680
Speaker 1: it's like no, no, no, no, hundreds and hundreds and hundreds

41
00:02:06,680 --> 00:02:08,519
Speaker 1: of dollars to so nice. Yeah, this is one of

42
00:02:08,560 --> 00:02:10,120
Speaker 1: those things that a lot of people don't know about.

43
00:02:10,280 --> 00:02:13,520
Speaker 1: And by the way, the statute of limitations is like

44
00:02:13,760 --> 00:02:15,840
Speaker 1: years long for some of these, So if you're like, man,

45
00:02:15,919 --> 00:02:18,600
Speaker 1: two years back, I got screwed on this flight. And

46
00:02:18,600 --> 00:02:21,680
Speaker 1: it doesn't have to be in inter European flight. It

47
00:02:21,720 --> 00:02:24,600
Speaker 1: can be a flight to and from Yeah, exactly, So

48
00:02:24,639 --> 00:02:26,799
Speaker 1: look at the details. So if you fancy like that,

49
00:02:26,960 --> 00:02:30,120
Speaker 1: like all of Joel's friends are, make sure to jets

50
00:02:30,120 --> 00:02:32,400
Speaker 1: threading for parents and all the likes. Right, but the

51
00:02:32,440 --> 00:02:34,400
Speaker 1: folks are just talking about bicycling from point A to

52
00:02:34,400 --> 00:02:37,800
Speaker 1: point B to to the grocery store. Right, We'll put

53
00:02:37,800 --> 00:02:39,520
Speaker 1: a link to an article that tells it helps you

54
00:02:39,600 --> 00:02:42,400
Speaker 1: understand how to get compensation for EUQ six to one

55
00:02:42,440 --> 00:02:45,120
Speaker 1: if you had a substantial delayer a cancelation. But it's

56
00:02:45,160 --> 00:02:47,040
Speaker 1: kind of cool, Like my sister did this a few

57
00:02:47,080 --> 00:02:50,320
Speaker 1: years ago, got paid more in the compensation than the

58
00:02:50,320 --> 00:02:52,239
Speaker 1: flight cost her because she got such a dirt cheap deal,

59
00:02:52,520 --> 00:02:53,880
Speaker 1: so it's yeah, it's pretty sweet.

60
00:02:53,880 --> 00:02:57,880
Speaker 2: They pay actual replacement cost, not depreciated cost of that ticket.

61
00:02:58,040 --> 00:03:00,880
Speaker 2: And we've talked about how these are. There are similar

62
00:03:00,880 --> 00:03:03,280
Speaker 2: benefits that credit cards offer, but of course you have

63
00:03:03,360 --> 00:03:05,320
Speaker 2: to know about that and have used the right credit

64
00:03:05,400 --> 00:03:08,320
Speaker 2: card or even have the credit card. So this kind

65
00:03:08,320 --> 00:03:10,000
Speaker 2: of size steps all of that, or it does not

66
00:03:10,040 --> 00:03:12,600
Speaker 2: come down to payment. It's even if the European law.

67
00:03:12,680 --> 00:03:14,960
Speaker 2: Even if you did, you could double dip essentially. And

68
00:03:15,040 --> 00:03:17,280
Speaker 2: oh that's what the credit card and the EU six one

69
00:03:17,360 --> 00:03:20,080
Speaker 2: because they're separate. Yes, it makes makes sense that you

70
00:03:20,080 --> 00:03:21,440
Speaker 2: should be able to That is one of those things

71
00:03:21,520 --> 00:03:23,399
Speaker 2: we're interesting. It would not be cheap.

72
00:03:23,400 --> 00:03:25,320
Speaker 1: I think it'd be frugal to take advantage of the

73
00:03:25,600 --> 00:03:28,880
Speaker 1: credit card benefit, the trip cancelation shirts, but also under

74
00:03:29,000 --> 00:03:33,079
Speaker 1: your your legal right as someone taking a trip to

75
00:03:33,160 --> 00:03:35,360
Speaker 1: or from Europe, like get the money. Oh and by

76
00:03:35,400 --> 00:03:37,440
Speaker 1: the way, Matt, I don't think we've mentioned this yet.

77
00:03:37,480 --> 00:03:40,480
Speaker 1: We're gonna have a listener hang here in Atlanta and

78
00:03:40,480 --> 00:03:44,040
Speaker 1: our boy home city this coming Friday. We teased it

79
00:03:44,080 --> 00:03:45,840
Speaker 1: was that last week or a couple of weeks ago, but

80
00:03:46,080 --> 00:03:46,720
Speaker 1: it's official.

81
00:03:46,840 --> 00:03:48,240
Speaker 2: This is the official announcement.

82
00:03:48,360 --> 00:03:50,160
Speaker 1: Yeah, so, if you live locally and you want to

83
00:03:50,360 --> 00:03:52,880
Speaker 1: see our ugly mugs drink beer together, please come out

84
00:03:52,920 --> 00:03:55,080
Speaker 1: to Inner Voice Brewing. We'll be there from four to

85
00:03:55,120 --> 00:03:55,640
Speaker 1: eight pm.

86
00:03:55,760 --> 00:03:57,680
Speaker 2: Let's incentivize folks as well. Let's well, we'll have a

87
00:03:57,720 --> 00:03:59,240
Speaker 2: few pairs of our how to money socks on hand.

88
00:03:59,280 --> 00:04:02,560
Speaker 1: Sure, yeah, you beer, we'll see but yeah, we hope

89
00:04:02,560 --> 00:04:04,440
Speaker 1: to see you there at Inner Voice. How to money

90
00:04:04,440 --> 00:04:06,920
Speaker 1: hang meet you, fellow listener this Friday from four to eight.

91
00:04:07,040 --> 00:04:08,840
Speaker 2: All right, let's introduce the beer that you and I

92
00:04:08,880 --> 00:04:11,440
Speaker 2: are going to enjoy today. This is a brew by

93
00:04:11,560 --> 00:04:15,800
Speaker 2: Common Space. It's called Chubby Unicorn, and we will give

94
00:04:15,800 --> 00:04:19,360
Speaker 2: our thoughts on this guava milkshake IPA at the end

95
00:04:19,400 --> 00:04:19,960
Speaker 2: of the episode.

96
00:04:20,000 --> 00:04:23,320
Speaker 1: That's right, but let's get to the subject at hand, Matt.

97
00:04:23,320 --> 00:04:25,599
Speaker 1: We're answering listener questions. We've got a good slate of

98
00:04:25,600 --> 00:04:27,760
Speaker 1: them today on the show, and if you have a question,

99
00:04:27,800 --> 00:04:30,200
Speaker 1: we would love to hear from you. It takes all

100
00:04:30,200 --> 00:04:33,080
Speaker 1: of three minutes to pick up your question, to talk

101
00:04:33,160 --> 00:04:35,320
Speaker 1: it into your phone, into that voice memo app, and

102
00:04:35,360 --> 00:04:37,200
Speaker 1: then to send it our way. You can find the

103
00:04:37,240 --> 00:04:40,920
Speaker 1: specific instructions for how to do that at howtomoney dot com.

104
00:04:40,960 --> 00:04:43,160
Speaker 1: Slash ask can't wait to hear from you. And this

105
00:04:43,200 --> 00:04:45,440
Speaker 1: listener wants to know whether or not they should sell

106
00:04:45,640 --> 00:04:48,240
Speaker 1: their home to an entity instead of a human.

107
00:04:49,040 --> 00:04:51,520
Speaker 4: Hello. My name is Rosemary and I currently live in

108
00:04:51,560 --> 00:04:54,560
Speaker 4: Central Texas. We were moving due to my husband's job.

109
00:04:54,839 --> 00:04:58,200
Speaker 4: After much deliberation and against common wisdom, we have decided

110
00:04:58,240 --> 00:05:00,159
Speaker 4: to sell our home, which we have only owned for

111
00:05:00,200 --> 00:05:02,839
Speaker 4: two years Where are the pros and cons of selling

112
00:05:02,880 --> 00:05:05,400
Speaker 4: your home to an eyebuyer such as open door for's

113
00:05:05,480 --> 00:05:08,600
Speaker 4: going through a traditional real estate agency. When might you

114
00:05:08,680 --> 00:05:11,400
Speaker 4: choose one option over the other? Thank you?

115
00:05:11,839 --> 00:05:14,320
Speaker 2: All right, let's kick this thing off, Rosemary, thank you

116
00:05:14,400 --> 00:05:16,440
Speaker 2: so much for your question. And by the way, congrats

117
00:05:16,440 --> 00:05:18,520
Speaker 2: on the new job there for your husband. I hope

118
00:05:18,560 --> 00:05:23,160
Speaker 2: it's just a fantastic opportunity as well as a promotion. Right,

119
00:05:23,200 --> 00:05:26,040
Speaker 2: hopefully you are yeller earning more. But I'm also hoping

120
00:05:26,040 --> 00:05:28,480
Speaker 2: too that you get to move somewhere great, right, yeah,

121
00:05:28,600 --> 00:05:30,520
Speaker 2: I mean Texas is great, but tex is great. I mean,

122
00:05:30,680 --> 00:05:33,240
Speaker 2: if you're wanting to move on from Texas, where would

123
00:05:33,279 --> 00:05:35,120
Speaker 2: you hope to be going? I don't know, I mean Atlanta,

124
00:05:35,160 --> 00:05:37,680
Speaker 2: Georgia Bay, Yeah, I mean probably right. Water's just fun.

125
00:05:37,720 --> 00:05:40,479
Speaker 2: It's pretty great here. But you're you're talking about selling

126
00:05:40,480 --> 00:05:43,919
Speaker 2: your house, and lucky for you, even after own owning

127
00:05:44,320 --> 00:05:47,000
Speaker 2: that house for just a couple of years, it's likely

128
00:05:47,040 --> 00:05:48,760
Speaker 2: that you're still going to come out ahead. Right. In

129
00:05:49,120 --> 00:05:52,440
Speaker 2: a normal time period, that could really come back and

130
00:05:52,560 --> 00:05:55,000
Speaker 2: kind of bite you. But just given the lack of supply,

131
00:05:55,120 --> 00:05:57,960
Speaker 2: given the soaring prices that we've seen since you made

132
00:05:57,960 --> 00:06:00,520
Speaker 2: that purchase, I'm pretty sure that you're probably still going

133
00:06:00,560 --> 00:06:02,440
Speaker 2: to be doing Okay. Yeah, obviously it comes down to

134
00:06:02,480 --> 00:06:05,640
Speaker 2: your personal situation here, but at least it's not like,

135
00:06:05,720 --> 00:06:07,880
Speaker 2: let's say it was six o seven that you made

136
00:06:07,880 --> 00:06:10,400
Speaker 2: the purchase and then if you're looking to sell two

137
00:06:10,480 --> 00:06:13,080
Speaker 2: years after that, that would put you in a pretty

138
00:06:13,120 --> 00:06:13,919
Speaker 2: painful position and.

139
00:06:14,000 --> 00:06:16,880
Speaker 1: Be called taking a bath, right for sure. And so yeah,

140
00:06:17,200 --> 00:06:21,520
Speaker 1: definitely fortunate for Rosemary that even despite despite those transaction

141
00:06:21,640 --> 00:06:24,799
Speaker 1: costs that are so heavy involved in buying and selling

142
00:06:24,839 --> 00:06:26,760
Speaker 1: and taking out a mortgage and all that stuff, it

143
00:06:26,800 --> 00:06:28,880
Speaker 1: would typically mean that you would lose money over such

144
00:06:28,920 --> 00:06:31,240
Speaker 1: a short term ownership cycle. But that's not going to

145
00:06:31,279 --> 00:06:33,680
Speaker 1: happen to you, Rosemary. But let's talk about eye buyers,

146
00:06:33,800 --> 00:06:37,400
Speaker 1: and first, what is an iBuyer Maybe let's define the terms. Well,

147
00:06:37,680 --> 00:06:40,240
Speaker 1: simply put, their big companies that are willing to instantly

148
00:06:40,760 --> 00:06:42,920
Speaker 1: and that's what the eye stands for. By the way,

149
00:06:42,960 --> 00:06:45,560
Speaker 1: in eye buyers, they will instantly buy your house from

150
00:06:45,600 --> 00:06:48,160
Speaker 1: you in order to turn around and sell it themselves

151
00:06:48,200 --> 00:06:50,960
Speaker 1: on the open market. Open Door and offer Pad they

152
00:06:51,000 --> 00:06:53,360
Speaker 1: are two of the largest players out there there. You

153
00:06:53,400 --> 00:06:56,839
Speaker 1: mentioned you mentioned open door, Rosemary in your question. But

154
00:06:56,960 --> 00:06:59,680
Speaker 1: Zillow and Redfin they had a large percentage of the

155
00:06:59,720 --> 00:07:03,400
Speaker 1: market before they ended their eyebuying programs, and basically they

156
00:07:03,400 --> 00:07:05,800
Speaker 1: had a tough time buying homes at scale, right, and

157
00:07:05,880 --> 00:07:07,400
Speaker 1: during the pandemic when there was a lot of money

158
00:07:07,400 --> 00:07:10,400
Speaker 1: slashing around, they were overpaying for houses. They literally bought

159
00:07:10,480 --> 00:07:12,760
Speaker 1: high and sold low, which is the exact opposite of

160
00:07:12,760 --> 00:07:14,280
Speaker 1: what you want to do really with any investment.

161
00:07:14,360 --> 00:07:14,520
Speaker 2: Right.

162
00:07:14,760 --> 00:07:17,120
Speaker 1: And so since then EE buying is kind of wised up,

163
00:07:17,880 --> 00:07:19,960
Speaker 1: so you're really you're much less inclined to get an

164
00:07:20,000 --> 00:07:22,840
Speaker 1: amazing offer today. Two three years ago you might have

165
00:07:22,920 --> 00:07:25,920
Speaker 1: seen Zilo give you more money than you would have

166
00:07:25,960 --> 00:07:27,840
Speaker 1: gotten if you put it on the open market. But

167
00:07:28,080 --> 00:07:30,280
Speaker 1: now purely because of the novelty of it, because it

168
00:07:30,320 --> 00:07:32,240
Speaker 1: was a new thing, it hadn't necessarily been proven. They

169
00:07:32,280 --> 00:07:33,800
Speaker 1: were still trying to figure things out. They're trying to

170
00:07:33,880 --> 00:07:37,200
Speaker 1: establish market share, and so they're like, hey, cool, and

171
00:07:37,240 --> 00:07:39,680
Speaker 1: they I guess they didn't really they had another due diligence.

172
00:07:39,680 --> 00:07:41,680
Speaker 1: They didn't figured out what it took to buy and

173
00:07:41,720 --> 00:07:46,000
Speaker 1: sell homes effectively without losing money. And then they realized,

174
00:07:46,000 --> 00:07:47,400
Speaker 1: wait a second, it's actually gonna be really hard to

175
00:07:47,440 --> 00:07:47,760
Speaker 1: pull this.

176
00:07:47,680 --> 00:07:48,040
Speaker 3: Off a lot.

177
00:07:48,120 --> 00:07:49,760
Speaker 2: Yeah, there's a lot of factors that go into account,

178
00:07:49,840 --> 00:07:52,120
Speaker 2: you know, like how do you account for the incessant

179
00:07:52,320 --> 00:07:55,840
Speaker 2: barking dog that's next door? If you're just looking at pictures,

180
00:07:56,440 --> 00:07:58,400
Speaker 2: which is how a lot of the eyebuyers do it,

181
00:07:58,400 --> 00:08:02,120
Speaker 2: it's oftentimes light unseen. But the future of the just

182
00:08:02,200 --> 00:08:05,000
Speaker 2: eye buying industry is uncertain. It seems like that they're

183
00:08:05,080 --> 00:08:07,480
Speaker 2: kind of building the plane while they're flying it. I

184
00:08:07,520 --> 00:08:10,640
Speaker 2: really like the idea of eye buyers, but the reality

185
00:08:10,760 --> 00:08:14,120
Speaker 2: just has played out a little differently. It sounds really good,

186
00:08:14,160 --> 00:08:16,840
Speaker 2: but the end result isn't necessarily awesome, and that's largely

187
00:08:16,880 --> 00:08:20,680
Speaker 2: because they are acting as another middleman who's looking to

188
00:08:20,680 --> 00:08:22,920
Speaker 2: get paid. So that means the offer that you're likely

189
00:08:22,920 --> 00:08:25,960
Speaker 2: going to receive it's going to be typically lower than

190
00:08:26,000 --> 00:08:28,280
Speaker 2: what you would get with a traditional listing. They are

191
00:08:28,320 --> 00:08:30,440
Speaker 2: looking for their piece of the pie, they're looking for

192
00:08:30,520 --> 00:08:33,560
Speaker 2: their cut. Some folks might think that selling via an

193
00:08:33,640 --> 00:08:35,840
Speaker 2: eye buyer is actually going to reduce fees, which is

194
00:08:35,880 --> 00:08:39,040
Speaker 2: going to maybe make the offer more competitive. In reality,

195
00:08:39,080 --> 00:08:41,840
Speaker 2: like why not go digital? That is not the case,

196
00:08:42,040 --> 00:08:44,959
Speaker 2: because the fees can be similar, if not more than

197
00:08:44,960 --> 00:08:47,440
Speaker 2: the fees that a typical realtor would charge. And so

198
00:08:47,480 --> 00:08:50,440
Speaker 2: why would you go with an option where you're essentially

199
00:08:50,480 --> 00:08:51,760
Speaker 2: going to get hit with the same fees but with

200
00:08:51,840 --> 00:08:54,679
Speaker 2: us with an inferior service. Right With at least with

201
00:08:54,720 --> 00:08:57,000
Speaker 2: a realtor, you've got somebody, like a real person. It

202
00:08:57,240 --> 00:09:01,920
Speaker 2: feels like a customized, bespoke, tailored care that you're receiving.

203
00:09:01,920 --> 00:09:04,440
Speaker 2: But with Eyebuyer, man, that seems like the path to

204
00:09:04,480 --> 00:09:06,840
Speaker 2: take if you're not looking for service, right, Like I mean,

205
00:09:07,040 --> 00:09:09,600
Speaker 2: just iebuyer even in the name itself, like it makes

206
00:09:09,600 --> 00:09:11,320
Speaker 2: me a think of eye Robot or whatever the movie

207
00:09:11,360 --> 00:09:12,920
Speaker 2: and is robots and stuff.

208
00:09:12,960 --> 00:09:15,160
Speaker 1: Well, you said service, But most people when they're in

209
00:09:15,200 --> 00:09:16,880
Speaker 1: there to sell me an iBuyer, they're not looking for service.

210
00:09:16,920 --> 00:09:18,840
Speaker 1: They're looking to sell it immediately, right. They don't care

211
00:09:18,920 --> 00:09:21,080
Speaker 1: about like whether someone's going to hold their hand and

212
00:09:21,120 --> 00:09:23,520
Speaker 1: walk them through the details and help them get their

213
00:09:23,520 --> 00:09:25,400
Speaker 1: house in order so they can get top dollar. They

214
00:09:25,480 --> 00:09:29,199
Speaker 1: want to be done, They want the transaction over completed,

215
00:09:29,440 --> 00:09:31,080
Speaker 1: they want their cash, right, And so that is what

216
00:09:31,120 --> 00:09:31,840
Speaker 1: iebuyers do.

217
00:09:31,960 --> 00:09:32,240
Speaker 2: Well.

218
00:09:32,280 --> 00:09:36,559
Speaker 1: They are the convenience play, the convenience pick. But we're

219
00:09:36,600 --> 00:09:38,640
Speaker 1: talking to one of the other big downsides of using

220
00:09:38,640 --> 00:09:41,480
Speaker 1: an eyebuyer is that you're asking one single entity to

221
00:09:41,520 --> 00:09:44,160
Speaker 1: make an offer for your house. You're skipping the open market,

222
00:09:44,240 --> 00:09:47,640
Speaker 1: right and the competition that's generated when home is publicly listed,

223
00:09:47,679 --> 00:09:51,400
Speaker 1: When it's put on the MLS. That's when everybody and

224
00:09:51,440 --> 00:09:54,120
Speaker 1: their sister sees your listing on Zilo and says, Oh,

225
00:09:54,120 --> 00:09:55,600
Speaker 1: that's a cute one on a cute street. I think

226
00:09:55,640 --> 00:09:57,400
Speaker 1: I want to go take a look at that. When

227
00:09:57,480 --> 00:09:59,959
Speaker 1: you sell directly to an eyebuyer, you miss those eyeballs,

228
00:10:00,120 --> 00:10:03,280
Speaker 1: and you miss the potential interest from people you know.

229
00:10:03,480 --> 00:10:05,800
Speaker 1: And even though obviously home buyers they're not lined up

230
00:10:06,120 --> 00:10:08,360
Speaker 1: the sidewalk to see a house like they were back

231
00:10:08,360 --> 00:10:11,440
Speaker 1: in twenty twenty one early twenty twenty two, still just

232
00:10:11,520 --> 00:10:14,120
Speaker 1: a few competing offers, right, is all you really need

233
00:10:14,160 --> 00:10:16,440
Speaker 1: to ensure that you're getting the absolute best price. Having

234
00:10:16,480 --> 00:10:18,960
Speaker 1: at least two or three interested parties looking at the

235
00:10:18,960 --> 00:10:21,320
Speaker 1: house making offers on the home is going to ensure

236
00:10:21,440 --> 00:10:24,520
Speaker 1: that you're getting what it's actually worth on the market.

237
00:10:24,600 --> 00:10:26,720
Speaker 1: You don't get that with an iBuyer. You're getting literally

238
00:10:26,760 --> 00:10:29,360
Speaker 1: just the one offer and got one buyer. That doesn't

239
00:10:29,360 --> 00:10:31,440
Speaker 1: help you the iebuyer. That doesn't help you know whether

240
00:10:31,520 --> 00:10:34,360
Speaker 1: or not that is what the house would actually go

241
00:10:34,400 --> 00:10:36,600
Speaker 1: for if you were to put it up for sale. Plus,

242
00:10:36,679 --> 00:10:39,960
Speaker 1: not all homes qualify because eye buyers aren't available in

243
00:10:40,000 --> 00:10:42,560
Speaker 1: all markets. They're available kind of more in the Southern

244
00:10:42,760 --> 00:10:46,319
Speaker 1: United States, less in the northern regions. So yeah, they

245
00:10:46,320 --> 00:10:48,960
Speaker 1: are in Texas, but they might not be where a

246
00:10:48,960 --> 00:10:51,520
Speaker 1: lot of our other listeners who listen Matt where where

247
00:10:51,520 --> 00:10:51,840
Speaker 1: they are.

248
00:10:51,960 --> 00:10:53,840
Speaker 2: It depends on the property too, because I think oftentimes

249
00:10:53,880 --> 00:10:56,120
Speaker 2: they're looking for uniformity because that's how they're able to

250
00:10:56,320 --> 00:10:59,120
Speaker 2: easily from a digital standpoint, determine the value of a home.

251
00:10:59,160 --> 00:11:01,240
Speaker 2: And if you have a piece of property that's on

252
00:11:01,320 --> 00:11:03,800
Speaker 2: a lot of land or that's that's a really unique home,

253
00:11:04,240 --> 00:11:06,920
Speaker 2: either A, they your house may not be eligible to

254
00:11:07,000 --> 00:11:10,120
Speaker 2: be purchased by an eyebuyer, or b you might get

255
00:11:10,400 --> 00:11:12,480
Speaker 2: severely low balled because they're not really taking that into

256
00:11:12,520 --> 00:11:14,480
Speaker 2: account as much as some of the other things that

257
00:11:14,600 --> 00:11:15,840
Speaker 2: a lot of folks are looking for.

258
00:11:15,960 --> 00:11:17,920
Speaker 1: I fearce has like a water slide from the second

259
00:11:17,920 --> 00:11:19,880
Speaker 1: story down to the pool, and you got like a

260
00:11:19,880 --> 00:11:22,440
Speaker 1: grotto or something, you might get qualified. I don't know,

261
00:11:22,600 --> 00:11:23,840
Speaker 1: they might not even want to play with you.

262
00:11:23,920 --> 00:11:27,360
Speaker 2: But like you said, folks who are wanting basically like

263
00:11:27,440 --> 00:11:29,440
Speaker 2: cash now, Which is a part of why we don't

264
00:11:29,480 --> 00:11:32,440
Speaker 2: like this whole like the eyebuyer industry or sort of

265
00:11:32,440 --> 00:11:35,400
Speaker 2: that mentality is it seems like almost like a desperate

266
00:11:35,559 --> 00:11:38,599
Speaker 2: ploy to unloading your house quickly, which isn't how you

267
00:11:38,640 --> 00:11:41,760
Speaker 2: should be approaching selling your home. But yeah, the speed

268
00:11:41,800 --> 00:11:43,520
Speaker 2: at which you could sell your house, how it's streamlined,

269
00:11:43,559 --> 00:11:47,600
Speaker 2: that's certainly one of the advantages to going with an eyebuyer,

270
00:11:47,640 --> 00:11:50,000
Speaker 2: But it's also just going to be so much easier,

271
00:11:50,120 --> 00:11:52,600
Speaker 2: right because like maybe some folks actually like they do

272
00:11:52,640 --> 00:11:54,520
Speaker 2: have the time, right, it's not about how quickly they

273
00:11:54,520 --> 00:11:56,280
Speaker 2: can do it. They actually have the time, but they

274
00:11:56,320 --> 00:11:58,040
Speaker 2: just don't want to deal with the hassle of it.

275
00:11:58,120 --> 00:11:59,959
Speaker 2: They don't want to put up with the headaches of schedule,

276
00:12:00,000 --> 00:12:02,200
Speaker 2: the appointments, of hiding all of their personal stuff so

277
00:12:02,240 --> 00:12:06,400
Speaker 2: that potential buyers can envision their own stuff there in

278
00:12:06,440 --> 00:12:08,960
Speaker 2: the house. It's the easy button. But you are paying

279
00:12:08,960 --> 00:12:12,560
Speaker 2: a price for this convenience, and you know, we hope

280
00:12:12,720 --> 00:12:14,960
Speaker 2: for your bottom line that you are able to take

281
00:12:14,960 --> 00:12:16,959
Speaker 2: the time to actually do some of these things. To

282
00:12:17,040 --> 00:12:20,320
Speaker 2: do the legwork. There are meaningful dollars on the line,

283
00:12:20,440 --> 00:12:24,480
Speaker 2: and we until the industry gets maybe more competitive or

284
00:12:24,480 --> 00:12:27,120
Speaker 2: more efficient to where the eyebuars are taking less of

285
00:12:27,160 --> 00:12:30,720
Speaker 2: a cut, we're not really in favor of going the

286
00:12:30,960 --> 00:12:31,959
Speaker 2: taking the eye buy route.

287
00:12:31,960 --> 00:12:33,480
Speaker 1: Sure, yeah, I mean a pawn shop will buy your

288
00:12:33,480 --> 00:12:35,400
Speaker 1: stuff instantly too, and they're not, but they're just not

289
00:12:35,440 --> 00:12:37,079
Speaker 1: gonna pay you as much as you can get exactly.

290
00:12:37,080 --> 00:12:39,800
Speaker 1: Typically if you list it yourself on Facebook, marketplace, or

291
00:12:39,800 --> 00:12:41,960
Speaker 1: if you sell it on eBay, there are all sorts

292
00:12:42,000 --> 00:12:44,320
Speaker 1: of ways where you can, you know, sell that an

293
00:12:44,320 --> 00:12:48,360
Speaker 1: asset that you have on a shorter truncated timetable, but

294
00:12:48,400 --> 00:12:50,600
Speaker 1: typically that means you're going to make less money for it.

295
00:12:50,679 --> 00:12:53,600
Speaker 2: Does feel like the pawnshop of realtors. Like I think

296
00:12:53,640 --> 00:12:57,079
Speaker 2: maybe that's the slight negative connotation again, not that the

297
00:12:57,840 --> 00:13:00,480
Speaker 2: pawn shops are serve purpose. They're a legit business and

298
00:13:00,520 --> 00:13:02,520
Speaker 2: the ability to go in there and man, I don't

299
00:13:02,559 --> 00:13:04,480
Speaker 2: have the time, I just need to unload some stuff

300
00:13:04,480 --> 00:13:06,800
Speaker 2: and in order to have some cash on hand. It

301
00:13:06,880 --> 00:13:10,080
Speaker 2: serves both parties well, But who stands to make a

302
00:13:10,120 --> 00:13:11,959
Speaker 2: profit The person that's there in the middle, and that's

303
00:13:11,960 --> 00:13:12,960
Speaker 2: what Eyebuyer is looking to do.

304
00:13:13,080 --> 00:13:15,080
Speaker 1: Yeah, I mean we've all seen Pond Stars. We know

305
00:13:15,120 --> 00:13:18,000
Speaker 1: what happens there. Okay, I actually haven't seen Pond Stars.

306
00:13:18,000 --> 00:13:19,599
Speaker 1: Oh really, you've never seen one episode of it?

307
00:13:19,640 --> 00:13:21,559
Speaker 2: I don't think so. I mean I understand the premise.

308
00:13:21,600 --> 00:13:23,200
Speaker 1: Next, you're gonna tell me you never saw one episode

309
00:13:23,200 --> 00:13:24,880
Speaker 1: of Orange County Choppers or whatever that was.

310
00:13:24,960 --> 00:13:27,040
Speaker 2: Oh, I know, I definitely Okay, Yeah, they're always fighting

311
00:13:27,040 --> 00:13:28,000
Speaker 2: and yeah stuff at.

312
00:13:28,160 --> 00:13:30,480
Speaker 1: There's like two of the most popular reality TV shows

313
00:13:30,520 --> 00:13:32,720
Speaker 1: of all time, that and like Deadliest Catch, Right, But

314
00:13:33,240 --> 00:13:35,800
Speaker 1: I think Insummation Rosemary, we would say that it can't

315
00:13:36,040 --> 00:13:38,040
Speaker 1: it can't hurt to get a quote from Open Door,

316
00:13:38,040 --> 00:13:39,720
Speaker 1: from offer Pad to see if they're in the ballpark.

317
00:13:39,720 --> 00:13:41,800
Speaker 1: But get a quote from both right, and you might

318
00:13:41,840 --> 00:13:44,000
Speaker 1: get a solid offer, you know, with just a few clicks.

319
00:13:44,320 --> 00:13:46,520
Speaker 1: But hiring an experienced agent who knows the ins and

320
00:13:46,559 --> 00:13:49,280
Speaker 1: outs of your neighborhood could net you thousands of dollars more,

321
00:13:49,280 --> 00:13:52,240
Speaker 1: if not tens of thousands of dollars more, and putting

322
00:13:52,280 --> 00:13:55,160
Speaker 1: in some of that work up front, whether it's you know,

323
00:13:55,400 --> 00:13:58,000
Speaker 1: taking out some ugly wallpaper and painting a neutral color

324
00:13:58,040 --> 00:14:00,200
Speaker 1: or something like that. All those sorts of things that

325
00:14:00,240 --> 00:14:02,040
Speaker 1: an agent is going to give you the tips on, Hey,

326
00:14:02,080 --> 00:14:05,600
Speaker 1: spending a few thousand here could mean many more thousands

327
00:14:05,679 --> 00:14:08,240
Speaker 1: right when it comes to putting your home on the

328
00:14:08,280 --> 00:14:10,480
Speaker 1: market and getting those offers. So I would talk to

329
00:14:10,480 --> 00:14:12,560
Speaker 1: an agent once you have those offers in hand from

330
00:14:12,559 --> 00:14:14,440
Speaker 1: the eye buyers, and say, hey, how much more can

331
00:14:14,480 --> 00:14:16,600
Speaker 1: we get? Like and if it's not worth the hassle

332
00:14:16,640 --> 00:14:19,760
Speaker 1: to make an extra couple grand, then you take the

333
00:14:19,760 --> 00:14:22,600
Speaker 1: eyebuyer offer. But if you say, actually, the agent things

334
00:14:22,600 --> 00:14:25,080
Speaker 1: we can get fifteen to twenty grand more, it's worth

335
00:14:25,080 --> 00:14:28,280
Speaker 1: the extra time, the extra effort. It doesn't hurt to

336
00:14:28,680 --> 00:14:30,920
Speaker 1: at least bark up that high buyer tree, but in

337
00:14:30,960 --> 00:14:32,640
Speaker 1: anli likelihood you're going to do better go in the

338
00:14:32,680 --> 00:14:33,760
Speaker 1: traditional Totally agree.

339
00:14:33,840 --> 00:14:36,240
Speaker 2: Yeah, it can be a great data point essentially to

340
00:14:36,280 --> 00:14:38,160
Speaker 2: help you to decide what it is that you should

341
00:14:38,160 --> 00:14:43,000
Speaker 2: be doing moving forward. And given the criticism that we

342
00:14:43,080 --> 00:14:46,280
Speaker 2: have presented on the podcast about realtors and the fees

343
00:14:46,320 --> 00:14:48,920
Speaker 2: that they present or the fees that they charge, I

344
00:14:48,960 --> 00:14:50,880
Speaker 2: think a lot of folks might be thinking, oh, man,

345
00:14:50,880 --> 00:14:53,480
Speaker 2: I'm surprised that mandol aren't down with eyebuyers because it

346
00:14:53,480 --> 00:14:56,240
Speaker 2: seems like it kind of automates things that kind of

347
00:14:56,440 --> 00:14:58,840
Speaker 2: it's a more efficient marketplace, But it's not really like

348
00:14:58,840 --> 00:15:01,640
Speaker 2: that's the problem is that you're holding to a single buyer.

349
00:15:01,680 --> 00:15:04,760
Speaker 2: If it was more like a sophisticated marketplace where buyers

350
00:15:04,760 --> 00:15:07,800
Speaker 2: are being put directly in touch with sellers and you

351
00:15:07,880 --> 00:15:09,920
Speaker 2: are able to automate a lot of the stuff there

352
00:15:09,960 --> 00:15:12,800
Speaker 2: in the middle to where there's not necessarily a middleman there,

353
00:15:12,800 --> 00:15:15,760
Speaker 2: and like taking a cut as opposed to just software

354
00:15:15,800 --> 00:15:19,400
Speaker 2: that's kind of running in the background, that sounds more

355
00:15:19,440 --> 00:15:21,720
Speaker 2: attractive to me, Like I'm more hopeful for that as

356
00:15:21,720 --> 00:15:25,640
Speaker 2: opposed to just another player that's in between you and

357
00:15:25,640 --> 00:15:26,040
Speaker 2: your money.

358
00:15:26,040 --> 00:15:27,600
Speaker 1: But we're just saying we're not talking about widgets here,

359
00:15:27,600 --> 00:15:29,520
Speaker 1: We're not talking about tennis shoes, we're not talking about

360
00:15:29,560 --> 00:15:29,960
Speaker 1: T shirts.

361
00:15:30,040 --> 00:15:30,120
Speaker 3: Right.

362
00:15:30,320 --> 00:15:32,440
Speaker 1: This is a complex market, the market of real estate,

363
00:15:32,840 --> 00:15:36,000
Speaker 1: and it varies from street to street. And like you said, Madi,

364
00:15:36,040 --> 00:15:39,920
Speaker 1: could a dog barking across the street, a troublesome house

365
00:15:39,960 --> 00:15:42,840
Speaker 1: that's right next door, Well, that can make all the

366
00:15:42,840 --> 00:15:44,880
Speaker 1: difference in what you're getting in what buyer see and

367
00:15:44,920 --> 00:15:47,520
Speaker 1: what they're willing to offer. And so I just don't

368
00:15:47,520 --> 00:15:50,080
Speaker 1: know if I buyers are ever going to be able

369
00:15:50,120 --> 00:15:53,840
Speaker 1: to compete in a hyper customized business like real estate.

370
00:15:54,080 --> 00:15:57,520
Speaker 1: But we've got more questions to get to, including one

371
00:15:57,680 --> 00:16:00,640
Speaker 1: about tossing bonus money into a retirement accoun Does that

372
00:16:00,680 --> 00:16:02,920
Speaker 1: make sense and will it help him avoid more tax?

373
00:16:03,200 --> 00:16:04,880
Speaker 1: We'll get to that and more right after this.

374
00:16:14,520 --> 00:16:16,840
Speaker 2: We are back and we will get to that four

375
00:16:16,920 --> 00:16:19,200
Speaker 2: when kay question here in a minute, But first let's

376
00:16:19,240 --> 00:16:22,800
Speaker 2: hear from a listener who is actually she heard us

377
00:16:22,840 --> 00:16:25,400
Speaker 2: answer a question and now she's got another question. It's

378
00:16:25,400 --> 00:16:27,160
Speaker 2: a question of a question tak you back off of

379
00:16:27,160 --> 00:16:29,600
Speaker 2: a question. We'll get to that one right now.

380
00:16:29,960 --> 00:16:32,240
Speaker 5: Hi, Matt and Joel. My name is Megan and I'm

381
00:16:32,240 --> 00:16:36,320
Speaker 5: a longtime listener of the podcast from Portland, Oregon. Recently,

382
00:16:36,440 --> 00:16:39,320
Speaker 5: when listening to one of the ask how to Money episodes,

383
00:16:39,360 --> 00:16:42,240
Speaker 5: you are answering a listener question about term versus whole

384
00:16:42,280 --> 00:16:44,360
Speaker 5: life insurance, and it got me thinking about something that

385
00:16:44,400 --> 00:16:47,640
Speaker 5: I'd love to get your advice on. Currently, my husband

386
00:16:47,640 --> 00:16:50,040
Speaker 5: and I are both twenty nine and working full time

387
00:16:50,080 --> 00:16:53,080
Speaker 5: with no kids. We both have insurance built into our

388
00:16:53,120 --> 00:16:56,040
Speaker 5: work benefits where we would get one point five times

389
00:16:56,040 --> 00:16:58,680
Speaker 5: our income upon death of either of us. We have

390
00:16:58,720 --> 00:17:01,560
Speaker 5: a healthy savings account and no debt beside our mortgage,

391
00:17:01,600 --> 00:17:04,000
Speaker 5: and since we don't have any dependents, we have always

392
00:17:04,000 --> 00:17:06,520
Speaker 5: thought this would be sufficient and the unlikely event that

393
00:17:06,560 --> 00:17:09,399
Speaker 5: we'd need it. However, we do plan to start a

394
00:17:09,400 --> 00:17:12,160
Speaker 5: family in the next few years and are wondering should

395
00:17:12,200 --> 00:17:15,040
Speaker 5: we go ahead and established term life insurance now since

396
00:17:15,040 --> 00:17:17,760
Speaker 5: we're younger and healthy in case something where to happen,

397
00:17:17,840 --> 00:17:19,399
Speaker 5: so that we can ensure that we get it for

398
00:17:19,480 --> 00:17:22,680
Speaker 5: a good price, knowing that we'll eventually need it. Thanks

399
00:17:22,720 --> 00:17:25,399
Speaker 5: so much for your thoughts and love listening to the podcast.

400
00:17:26,119 --> 00:17:28,920
Speaker 1: All right, Matt, speaking of efficient markets, life insurance is

401
00:17:28,960 --> 00:17:31,560
Speaker 1: a much more efficient market than versus in real estate.

402
00:17:31,960 --> 00:17:34,879
Speaker 2: Oh they're going to say universal whole life. Oh oh yeah, Yeah,

403
00:17:34,920 --> 00:17:38,200
Speaker 2: there's a lot more you know, all the actuary, actuary exactly,

404
00:17:38,240 --> 00:17:41,040
Speaker 2: what an actuarial table, actuarial there's more standardization.

405
00:17:41,200 --> 00:17:45,240
Speaker 1: You can shop for it with multiple providers online in

406
00:17:45,280 --> 00:17:47,480
Speaker 1: a simple sitting. And so we're big fans of term

407
00:17:47,520 --> 00:17:49,080
Speaker 1: Life by the way, in case you didn't know, if

408
00:17:49,080 --> 00:17:50,960
Speaker 1: you're like, I think I need some life insurance, term

409
00:17:51,000 --> 00:17:53,960
Speaker 1: life is the way to go. We'll actually put a

410
00:17:54,000 --> 00:17:55,960
Speaker 1: link to an article I wrote about that on the

411
00:17:56,000 --> 00:17:58,520
Speaker 1: website in the show notes. But before we tackle this

412
00:17:58,680 --> 00:18:01,520
Speaker 1: new term life policy, let's talk about work provided life

413
00:18:01,520 --> 00:18:03,840
Speaker 1: insurance policies for just a second, because a lot of

414
00:18:03,840 --> 00:18:05,840
Speaker 1: folks they might be thinking that, well, one and a

415
00:18:05,880 --> 00:18:08,679
Speaker 1: half times your income, that's plenty, right if something happens

416
00:18:08,720 --> 00:18:11,119
Speaker 1: to either of you, And the truth is it might be,

417
00:18:11,760 --> 00:18:14,360
Speaker 1: but it does depend on the specific details.

418
00:18:14,400 --> 00:18:14,600
Speaker 3: Right.

419
00:18:14,800 --> 00:18:16,600
Speaker 1: It sounds like you've both done a good job thinking

420
00:18:16,640 --> 00:18:19,000
Speaker 1: through the particulars, which is great. But for others who

421
00:18:19,080 --> 00:18:21,280
Speaker 1: might be in a similar boat, consider what your debt

422
00:18:21,320 --> 00:18:24,600
Speaker 1: obligation is as a couple. If one of you dies,

423
00:18:24,640 --> 00:18:27,400
Speaker 1: would the other be able to continue to pay the mortgage.

424
00:18:27,440 --> 00:18:30,320
Speaker 1: Let's say you make a substantially less you're a teacher

425
00:18:30,400 --> 00:18:33,560
Speaker 1: and the other ones software. The other person's a software engineer.

426
00:18:33,920 --> 00:18:36,840
Speaker 1: That changes the dynamics, Right, if it's split fifty to fifty,

427
00:18:36,840 --> 00:18:39,960
Speaker 1: it's like a kind of a simpler dynamic to think about.

428
00:18:40,640 --> 00:18:43,119
Speaker 1: And I know there's obviously a lot of emotions involved

429
00:18:43,119 --> 00:18:45,840
Speaker 1: in this. This can be kind of like a morbid exercise.

430
00:18:46,359 --> 00:18:48,160
Speaker 1: Would you be able to get back to work after

431
00:18:48,200 --> 00:18:50,160
Speaker 1: a couple weeks or do you think you need more months?

432
00:18:50,160 --> 00:18:51,800
Speaker 1: To mourn your low sentiens. We don't know that right

433
00:18:51,840 --> 00:18:54,159
Speaker 1: until we go through it. So it's the kind of

434
00:18:54,200 --> 00:18:57,720
Speaker 1: thing that's unlikely to happen, but it's worth envisioning so

435
00:18:58,000 --> 00:18:59,720
Speaker 1: that you're properly prepared.

436
00:18:59,359 --> 00:19:00,760
Speaker 2: So that you.

437
00:19:00,920 --> 00:19:04,919
Speaker 1: Feel can feel comfortable that you have enough insurance in

438
00:19:04,960 --> 00:19:07,800
Speaker 1: the case of that worst event happening.

439
00:19:07,920 --> 00:19:10,280
Speaker 2: Yeah, and it depends on just some of the different

440
00:19:10,320 --> 00:19:13,440
Speaker 2: personal finance goals that you might have as well, because

441
00:19:13,440 --> 00:19:15,600
Speaker 2: I think when you, like earlier on in your careers,

442
00:19:16,440 --> 00:19:19,320
Speaker 2: you may not have a ton of expendable additional income

443
00:19:19,359 --> 00:19:22,040
Speaker 2: where you might say, well, it wouldn't hurt to go

444
00:19:22,080 --> 00:19:24,639
Speaker 2: ahead and get an additional policy, But if one is

445
00:19:24,680 --> 00:19:26,760
Speaker 2: being provided for you at work, and if that's enough,

446
00:19:26,760 --> 00:19:29,320
Speaker 2: then of course, why spend the additional money every single

447
00:19:29,359 --> 00:19:32,080
Speaker 2: month for a policy that you don't necessarily need. If

448
00:19:32,160 --> 00:19:34,359
Speaker 2: you've thought through some of these some of those questions that.

449
00:19:34,840 --> 00:19:37,280
Speaker 1: In that workplace policy typically it is one x or

450
00:19:37,320 --> 00:19:39,560
Speaker 1: one and a half x your income that's given as

451
00:19:39,560 --> 00:19:43,320
Speaker 1: a free perk. Buying more through your workplace plan doesn't

452
00:19:43,320 --> 00:19:46,280
Speaker 1: typically make more sense because, especially if you're healthy and

453
00:19:46,400 --> 00:19:48,080
Speaker 1: twenty nine years old, you're going to be able to

454
00:19:48,080 --> 00:19:50,159
Speaker 1: get a much better deal shopping the open market, So

455
00:19:50,760 --> 00:19:52,679
Speaker 1: I wouldn't necessarily add to it at work. I would

456
00:19:52,720 --> 00:19:55,320
Speaker 1: if you do end up believing or realizing that you

457
00:19:55,400 --> 00:19:58,199
Speaker 1: need more, you're going to want to shop on the

458
00:19:58,200 --> 00:20:00,240
Speaker 1: open market as opposed to going through that work place

459
00:20:00,240 --> 00:20:00,800
Speaker 1: playing more.

460
00:20:00,880 --> 00:20:03,560
Speaker 2: Yeah, but with that being or a perk that your

461
00:20:03,560 --> 00:20:06,240
Speaker 2: employer might offer, totally take take advantage of that thing.

462
00:20:06,280 --> 00:20:08,200
Speaker 2: But I get the freestyle. Keep in mind though, that

463
00:20:08,640 --> 00:20:13,800
Speaker 2: it's workplace provided, employer provided perk, So once you were

464
00:20:13,840 --> 00:20:15,480
Speaker 2: to move on from that job, that's that thing is

465
00:20:15,520 --> 00:20:17,720
Speaker 2: not going to be coming with you, which is the opposite.

466
00:20:17,760 --> 00:20:20,280
Speaker 2: Of course, if you get your own individual term life policy,

467
00:20:20,320 --> 00:20:22,840
Speaker 2: that's good for you, know, no matter who it is

468
00:20:22,840 --> 00:20:25,600
Speaker 2: that you work for. But yeah, important things to think through.

469
00:20:25,600 --> 00:20:27,879
Speaker 2: And this is and this is coming too from.

470
00:20:27,760 --> 00:20:31,199
Speaker 1: A guy that got term life before we had kids, Like,

471
00:20:31,240 --> 00:20:32,960
Speaker 1: this is something that we did because we kind of

472
00:20:32,960 --> 00:20:34,960
Speaker 1: thought through some of those some of those different things.

473
00:20:35,320 --> 00:20:38,440
Speaker 1: And Kate she was she just has, like I guess,

474
00:20:38,440 --> 00:20:41,680
Speaker 1: a lower risk tolerance level, and she was thinking, man, okay,

475
00:20:42,119 --> 00:20:44,159
Speaker 1: I guess early on it became clear that I was

476
00:20:44,200 --> 00:20:47,560
Speaker 1: becoming more of the main breadwinner and we had purchased

477
00:20:47,560 --> 00:20:49,840
Speaker 1: a home. We hadn't had kids yet, but we did

478
00:20:49,840 --> 00:20:52,040
Speaker 1: have a house, and I think it was about two

479
00:20:52,080 --> 00:20:55,280
Speaker 1: years after we had that house that we had this

480
00:20:55,520 --> 00:20:57,760
Speaker 1: had this discussion, and she was thinking, Man, I would

481
00:20:57,760 --> 00:20:59,240
Speaker 1: still love to be able to stay in this house

482
00:20:59,480 --> 00:21:01,359
Speaker 1: where you did. I don't know if I would be

483
00:21:01,400 --> 00:21:03,280
Speaker 1: able to be able to afford the mortgage. And so

484
00:21:03,359 --> 00:21:05,760
Speaker 1: that's literally something that we went ahead and did. That

485
00:21:05,840 --> 00:21:07,960
Speaker 1: was like a solid two years I think before we

486
00:21:08,000 --> 00:21:10,520
Speaker 1: even had kids. And so for us, it was more

487
00:21:10,560 --> 00:21:12,480
Speaker 1: of a peace of mind, a way to mitigate risk,

488
00:21:12,520 --> 00:21:15,720
Speaker 1: even though it was going to be highly unlikely that

489
00:21:15,720 --> 00:21:17,960
Speaker 1: that was going to happen. But every young couple who

490
00:21:18,000 --> 00:21:20,560
Speaker 1: doesn't have kids in their twenties or whatever is going

491
00:21:20,640 --> 00:21:23,680
Speaker 1: to have different things to think through. Right, they might

492
00:21:23,680 --> 00:21:25,600
Speaker 1: not own a home, but they might live exactly, they

493
00:21:25,640 --> 00:21:28,080
Speaker 1: might live in an airstream and say, listen, our costs

494
00:21:28,080 --> 00:21:30,640
Speaker 1: are really low and so the one X is plenty, right,

495
00:21:30,680 --> 00:21:31,760
Speaker 1: that's more than enough.

496
00:21:32,480 --> 00:21:35,119
Speaker 2: Or maybe you've got like a a ton of family

497
00:21:35,480 --> 00:21:37,600
Speaker 2: that are fairly well off and they've got basements and

498
00:21:37,640 --> 00:21:39,800
Speaker 2: additional rooms or wings of the house that you can

499
00:21:39,840 --> 00:21:42,760
Speaker 2: live in. These are all things to consider as you

500
00:21:42,800 --> 00:21:44,560
Speaker 2: are trying to trying to decide if you should go

501
00:21:44,600 --> 00:21:46,320
Speaker 2: ahead and go out on your own and kind of

502
00:21:46,320 --> 00:21:48,840
Speaker 2: get your own policy. But that being said, like you

503
00:21:48,840 --> 00:21:50,560
Speaker 2: don't need to be in a rush to go out

504
00:21:50,560 --> 00:21:53,840
Speaker 2: there and secure your own term life policy, Like this

505
00:21:53,880 --> 00:21:56,639
Speaker 2: is something that I would maybe put on your medium

506
00:21:56,760 --> 00:21:58,920
Speaker 2: term financial to do list, but not something that needs

507
00:21:58,960 --> 00:22:03,000
Speaker 2: to happen away, because you're asking about getting a policy

508
00:22:03,720 --> 00:22:06,400
Speaker 2: early on, while you're young, before it gets really expensive. Well,

509
00:22:06,400 --> 00:22:08,640
Speaker 2: premiums they go up over time as you get older, yes,

510
00:22:08,920 --> 00:22:11,520
Speaker 2: but they don't adjust a ton at all. From your

511
00:22:11,560 --> 00:22:14,440
Speaker 2: twenties to your thirties. You might end up literally paying

512
00:22:14,480 --> 00:22:17,240
Speaker 2: just a few extra dollars every single month, but you

513
00:22:17,240 --> 00:22:19,439
Speaker 2: will also be covered for a few extra years on

514
00:22:19,520 --> 00:22:21,960
Speaker 2: the tail end, which are the most expensive years to

515
00:22:22,040 --> 00:22:25,679
Speaker 2: be insured for more important years. Yes, absolutely, So you're

516
00:22:25,760 --> 00:22:27,480
Speaker 2: kind of rolling the dice here in one sense, right,

517
00:22:27,480 --> 00:22:29,800
Speaker 2: Like you're hoping that there's not going to be like

518
00:22:29,840 --> 00:22:33,840
Speaker 2: a medical catastrophe that's going to change those dynamics. But

519
00:22:33,880 --> 00:22:35,840
Speaker 2: I think it's totally fine to wait two or three

520
00:22:35,880 --> 00:22:38,520
Speaker 2: more years, even waiting but until you have kids before

521
00:22:38,560 --> 00:22:41,119
Speaker 2: getting out there and getting your own additional policy, Like literally,

522
00:22:41,200 --> 00:22:43,320
Speaker 2: it depends where you look it up. But I saw

523
00:22:43,400 --> 00:22:46,440
Speaker 2: one table and it showed that between the ages twenty

524
00:22:46,440 --> 00:22:49,960
Speaker 2: five and thirty five, you are literally only paying two

525
00:22:50,000 --> 00:22:54,000
Speaker 2: dollars more two dollars twenty four dollars a year by

526
00:22:54,040 --> 00:22:57,040
Speaker 2: waiting a decade a decade of not paying for paying

527
00:22:57,119 --> 00:22:59,959
Speaker 2: annual premiums on a policy that you are, you know,

528
00:23:00,160 --> 00:23:02,199
Speaker 2: unlikely going to need, especially in these early years when

529
00:23:02,240 --> 00:23:04,840
Speaker 2: you're like, I'm just trying to max out a rothier area,

530
00:23:05,080 --> 00:23:06,800
Speaker 2: just trying to get the match on my four oh

531
00:23:06,800 --> 00:23:09,920
Speaker 2: one K. You could maybe cut back from your investing

532
00:23:10,040 --> 00:23:12,480
Speaker 2: to have more insurance. But these are the kind of

533
00:23:12,600 --> 00:23:14,920
Speaker 2: hard decisions that people in their twenties have to make.

534
00:23:15,119 --> 00:23:18,800
Speaker 2: I still remember Matt people being told by really smart people, hey,

535
00:23:18,800 --> 00:23:20,600
Speaker 2: you need more term life insurance, and I was like,

536
00:23:20,680 --> 00:23:23,520
Speaker 2: but I I'm just trying to become, you know, financially independent,

537
00:23:23,520 --> 00:23:25,359
Speaker 2: and I feel like I need to sock more money

538
00:23:25,680 --> 00:23:29,080
Speaker 2: into investments and that, Yeah, I get the value in

539
00:23:29,119 --> 00:23:30,960
Speaker 2: that insurance, but I think I can wait a couple

540
00:23:31,040 --> 00:23:33,520
Speaker 2: more years. And so that might be the case here,

541
00:23:33,520 --> 00:23:35,760
Speaker 2: too possible to over ensure you don't want to you

542
00:23:35,760 --> 00:23:37,600
Speaker 2: don't want to overdo it. Towards keeping you from achieving

543
00:23:37,640 --> 00:23:39,160
Speaker 2: some of those other things that you're getting after.

544
00:23:39,119 --> 00:23:40,880
Speaker 1: Right, So those are the trade offs, Like everything comes

545
00:23:40,920 --> 00:23:43,159
Speaker 1: with the trade off, right, Like that's that's the reality

546
00:23:43,200 --> 00:23:45,480
Speaker 1: behind everything in personal finance. And so in a couple

547
00:23:45,520 --> 00:23:47,280
Speaker 1: of years, you'll probably want to grab a thirty year

548
00:23:47,359 --> 00:23:49,840
Speaker 1: term policy, megan, but shop around, like when you get

549
00:23:49,880 --> 00:23:51,720
Speaker 1: to that point. Policy Genius is one of our favorite

550
00:23:51,720 --> 00:23:54,640
Speaker 1: spots to get quotes. Costco members should also get quotes

551
00:23:54,680 --> 00:23:57,000
Speaker 1: there are too. And the reason you only need a policy,

552
00:23:57,040 --> 00:23:58,920
Speaker 1: by the way, for three decades instead of for life,

553
00:23:58,960 --> 00:24:01,840
Speaker 1: instead of getting like a whole life policy, is because

554
00:24:01,880 --> 00:24:04,399
Speaker 1: we're hoping that the need for life insurance is going

555
00:24:04,440 --> 00:24:07,119
Speaker 1: to evaporate by the time the kids that you're playing

556
00:24:07,119 --> 00:24:10,360
Speaker 1: on having the theoretical kids by the time they're grown, right,

557
00:24:10,600 --> 00:24:13,480
Speaker 1: and that you've been saving and investing for such a

558
00:24:13,480 --> 00:24:16,080
Speaker 1: long stretch that at that point in time you don't

559
00:24:16,080 --> 00:24:18,159
Speaker 1: need the coverage. You could pay a bunch more. You

560
00:24:18,160 --> 00:24:20,399
Speaker 1: can get life insurance for the rest of your years,

561
00:24:20,520 --> 00:24:22,679
Speaker 1: but should be better off with the term policy and

562
00:24:22,720 --> 00:24:25,360
Speaker 1: the much smaller premiums that accompany it, which would allow

563
00:24:25,400 --> 00:24:28,360
Speaker 1: you to funnel even more money towards better financial goals

564
00:24:28,440 --> 00:24:30,879
Speaker 1: like investing even more. It's a virtuous cycle.

565
00:24:31,119 --> 00:24:33,000
Speaker 2: Yeah, and like we said, as far as like your

566
00:24:33,080 --> 00:24:34,879
Speaker 2: kids being out of the house, like that gives you

567
00:24:34,920 --> 00:24:38,280
Speaker 2: a solid twelve years to have like multiple failures to

568
00:24:38,359 --> 00:24:41,280
Speaker 2: launch in order for those to get for those kids

569
00:24:41,280 --> 00:24:44,480
Speaker 2: to get out of there before you know, obviously they're

570
00:24:44,520 --> 00:24:45,720
Speaker 2: no longer dependent on you. Yeah.

571
00:24:45,760 --> 00:24:48,679
Speaker 1: So really it's it's not like an easy slam dunk decision.

572
00:24:48,680 --> 00:24:49,960
Speaker 1: But if you think through all those things and you say,

573
00:24:49,960 --> 00:24:51,879
Speaker 1: wait a second, kind of like Matt and Kate, I

574
00:24:51,880 --> 00:24:53,919
Speaker 1: feel like we need a little bit extra coverage, and

575
00:24:53,960 --> 00:24:55,680
Speaker 1: really it's not that expensive, and we're meeting all of

576
00:24:55,720 --> 00:24:58,919
Speaker 1: our other our other financial goals anyway, so let's go

577
00:24:58,920 --> 00:25:01,000
Speaker 1: ahead and make the purchase. It's really only going to

578
00:25:01,000 --> 00:25:03,199
Speaker 1: be nineteen dollars a month or something like that. But

579
00:25:03,640 --> 00:25:05,639
Speaker 1: then again you might say, no, no, that would keep

580
00:25:05,760 --> 00:25:08,040
Speaker 1: us from being able to achieve this, this and this,

581
00:25:08,359 --> 00:25:10,720
Speaker 1: and so actually we're going to hold off for a

582
00:25:10,760 --> 00:25:13,840
Speaker 1: couple more years. I think you could really make a

583
00:25:13,920 --> 00:25:15,080
Speaker 1: pretty good argument either way.

584
00:25:15,160 --> 00:25:17,720
Speaker 2: Yeah, but bottom line, know that it does not get

585
00:25:17,800 --> 00:25:21,400
Speaker 2: significantly more expensive hardly at all. Like really, it really

586
00:25:21,400 --> 00:25:24,080
Speaker 2: starts ticking up once you hit forty, but hey, let's

587
00:25:24,119 --> 00:25:27,120
Speaker 2: get to our next question. This is from a listener who,

588
00:25:27,440 --> 00:25:29,480
Speaker 2: bottom line, is wanting to make sure that he's not

589
00:25:29,760 --> 00:25:33,040
Speaker 2: leaving money retirement dollars on the table at the end

590
00:25:33,040 --> 00:25:35,120
Speaker 2: of the year via his four o one K. Let's

591
00:25:35,119 --> 00:25:35,399
Speaker 2: hear it.

592
00:25:35,720 --> 00:25:36,520
Speaker 6: Hi Matt Joel.

593
00:25:36,680 --> 00:25:38,919
Speaker 3: My name is Gavin and I'm from late To, Utah.

594
00:25:39,040 --> 00:25:40,960
Speaker 3: I am a recent newcomer to the How To Money

595
00:25:40,960 --> 00:25:43,120
Speaker 3: family and I've been listening for about a month now

596
00:25:43,240 --> 00:25:45,119
Speaker 3: and I love the simplicity that you guys bring to

597
00:25:45,119 --> 00:25:48,480
Speaker 3: the complex world of finances. I am thirty four years

598
00:25:48,480 --> 00:25:50,520
Speaker 3: old and have four children and I work in a

599
00:25:50,560 --> 00:25:54,000
Speaker 3: sales role for a construction company. For my role, I

600
00:25:54,160 --> 00:25:57,480
Speaker 3: qualify for an annual bonus. We are paid weekly and

601
00:25:57,520 --> 00:26:00,320
Speaker 3: the company offers a four oh one K match in

602
00:26:00,440 --> 00:26:03,200
Speaker 3: order to maximize my weekly take home pay for day

603
00:26:03,240 --> 00:26:06,960
Speaker 3: to day expenses. I've been making no contributions to my

604
00:26:07,000 --> 00:26:09,920
Speaker 3: four oh one K weekly, but will calculate to take

605
00:26:10,040 --> 00:26:11,879
Speaker 3: enough out of my bonus to make sure that for

606
00:26:11,960 --> 00:26:14,680
Speaker 3: the year I've contributed enough of a percentage to get

607
00:26:14,680 --> 00:26:17,960
Speaker 3: the match. Also, I did confirm that my company does

608
00:26:17,960 --> 00:26:20,879
Speaker 3: a true up an extra benefit that I've.

609
00:26:20,760 --> 00:26:21,359
Speaker 6: Seen to do this.

610
00:26:21,600 --> 00:26:23,800
Speaker 3: Is that because I'm contributing to my four oh one

611
00:26:23,880 --> 00:26:27,920
Speaker 3: K and the funds come out pre tax, my taxable amount,

612
00:26:28,200 --> 00:26:31,639
Speaker 3: which being a bonus attacked at a higher percent, is less.

613
00:26:31,880 --> 00:26:35,840
Speaker 3: So I'm saving a good amount on my bonus taxes

614
00:26:35,840 --> 00:26:39,880
Speaker 3: by doing this. My question is, by only contributing one

615
00:26:39,880 --> 00:26:42,919
Speaker 3: time per year, am I losing the long term benefits

616
00:26:42,960 --> 00:26:46,320
Speaker 3: of compounding interest in my four oh one k? Thank

617
00:26:46,359 --> 00:26:47,359
Speaker 3: you guys, have a great.

618
00:26:47,280 --> 00:26:48,120
Speaker 2: Day, Matt.

619
00:26:48,200 --> 00:26:51,080
Speaker 1: I love that Gavin said that how to money family. Honestly,

620
00:26:51,119 --> 00:26:53,719
Speaker 1: it is like a family, isn't it. I feel that

621
00:26:53,880 --> 00:26:56,000
Speaker 1: in our Facebook group we've got ten thy seven hundred

622
00:26:56,040 --> 00:26:58,480
Speaker 1: member or something like that now, and people are always

623
00:26:58,480 --> 00:27:00,920
Speaker 1: addressing each other in these like terms of affection, which

624
00:27:00,960 --> 00:27:03,240
Speaker 1: is so sweet, and does.

625
00:27:03,160 --> 00:27:04,400
Speaker 2: Everybody refer to each other as brother?

626
00:27:04,440 --> 00:27:07,080
Speaker 1: And yeah that might get a little creepy, right, but

627
00:27:07,440 --> 00:27:10,600
Speaker 1: maybe not quite to that same place. Is kind of weird, right, exactly? No,

628
00:27:10,800 --> 00:27:13,160
Speaker 1: But it really is like it's this community we're trying

629
00:27:13,160 --> 00:27:16,600
Speaker 1: to build of people who are like minded, and you

630
00:27:16,720 --> 00:27:19,199
Speaker 1: want to see other people achieve success too, So I

631
00:27:19,240 --> 00:27:21,760
Speaker 1: think of it in some ways as a family. And

632
00:27:21,920 --> 00:27:25,119
Speaker 1: I don't know, maybe you're the godfather of it. But

633
00:27:25,359 --> 00:27:29,040
Speaker 1: what does that make you? I godmother? Maybe fairy godmomay

634
00:27:29,119 --> 00:27:31,680
Speaker 1: I will say that, all right, go with that. But Gavin,

635
00:27:31,680 --> 00:27:33,879
Speaker 1: I'm glad to have you around man. Thanks for listening

636
00:27:33,920 --> 00:27:36,840
Speaker 1: to the podcast, and congrats on getting the full match

637
00:27:37,280 --> 00:27:39,440
Speaker 1: on the four to one K even though you've got

638
00:27:39,440 --> 00:27:42,280
Speaker 1: four kiddos at home, Matt, that's like a bigger hurdle

639
00:27:42,320 --> 00:27:44,960
Speaker 1: to jump over it maximizing those retirement.

640
00:27:44,640 --> 00:27:47,720
Speaker 2: Accounts for personal experience. Welcome to the four kids club. Right,

641
00:27:48,440 --> 00:27:49,480
Speaker 2: You've got that. Not easy.

642
00:27:49,520 --> 00:27:51,479
Speaker 1: He's the mama bird right like or daddy bird. He's

643
00:27:51,520 --> 00:27:53,680
Speaker 1: got those mouths defeat. It's not easy. And so I'm

644
00:27:53,680 --> 00:27:55,800
Speaker 1: glad that you've confirmed that your company does a true up.

645
00:27:55,800 --> 00:27:59,600
Speaker 1: By the way, not every plan offers this, and so

646
00:28:00,040 --> 00:28:01,800
Speaker 1: I can come back to bite you if, let's say

647
00:28:01,800 --> 00:28:04,439
Speaker 1: you don't contribute for a few paycheck cycles, but you're

648
00:28:04,480 --> 00:28:06,800
Speaker 1: trying to invest money in bigger chunks later in the

649
00:28:06,880 --> 00:28:09,240
Speaker 1: year in order to try to get that full match. Well,

650
00:28:09,960 --> 00:28:12,439
Speaker 1: if your employer's plan goes the true up path at

651
00:28:12,440 --> 00:28:14,760
Speaker 1: the end of the year like Gavin's does, you'll be fine. Right,

652
00:28:14,920 --> 00:28:17,440
Speaker 1: you receive the full matching dollars you otherwise would have

653
00:28:17,520 --> 00:28:20,800
Speaker 1: received if you had invested like normal like clockwork along

654
00:28:20,800 --> 00:28:21,040
Speaker 1: the way.

655
00:28:21,040 --> 00:28:21,480
Speaker 2: But if your.

656
00:28:21,359 --> 00:28:25,399
Speaker 1: Employer does not offer the ability to true up, you

657
00:28:25,400 --> 00:28:27,760
Speaker 1: will have missed out on some of those free matching dollars.

658
00:28:27,800 --> 00:28:30,920
Speaker 1: So this is just an important detail to make sure

659
00:28:30,960 --> 00:28:33,399
Speaker 1: that you're aware of with your employer if you're not

660
00:28:34,320 --> 00:28:37,320
Speaker 1: committing money to your four to one K regularly throughout

661
00:28:37,320 --> 00:28:37,680
Speaker 1: the year.

662
00:28:37,880 --> 00:28:40,760
Speaker 2: Yeah, And basically the reason that the true up is

663
00:28:40,840 --> 00:28:45,760
Speaker 2: necessary is employers basically are lazy and so oftentimes the

664
00:28:45,760 --> 00:28:48,800
Speaker 2: way the match is calculated is they base it on

665
00:28:48,960 --> 00:28:51,520
Speaker 2: your annual salary and so at the beginning of the year,

666
00:28:51,560 --> 00:28:54,000
Speaker 2: they say, okay, if we provide a six percent match

667
00:28:54,000 --> 00:28:56,560
Speaker 2: based on your salary, this is how much we would contribute.

668
00:28:56,920 --> 00:28:59,600
Speaker 2: This is how much we're going to match every single paycheck.

669
00:28:59,640 --> 00:29:02,320
Speaker 2: But if if there are some gaps, and I totally

670
00:29:02,320 --> 00:29:03,760
Speaker 2: get it, Gavin, if you're kind of like, I'm not

671
00:29:03,800 --> 00:29:06,800
Speaker 2: totally sure if we're how aggressively we're going to invest

672
00:29:06,800 --> 00:29:09,400
Speaker 2: this year, I got four miles to feed you. There

673
00:29:09,440 --> 00:29:11,320
Speaker 2: might be times when you're just like, all right, things

674
00:29:11,320 --> 00:29:12,920
Speaker 2: are looking kind of tight, so you skip out on

675
00:29:13,200 --> 00:29:16,400
Speaker 2: some of those contributions. But basically, when you contribute to

676
00:29:16,400 --> 00:29:18,760
Speaker 2: your four and K, it acts as a trigger for

677
00:29:18,840 --> 00:29:22,680
Speaker 2: your employer to come to match with their matching contribution.

678
00:29:23,160 --> 00:29:25,080
Speaker 2: And so what that means is that if you invest

679
00:29:25,120 --> 00:29:26,440
Speaker 2: at the end of the year with the lump sum

680
00:29:26,520 --> 00:29:29,600
Speaker 2: and you don't have that true up. If let's say

681
00:29:29,640 --> 00:29:32,840
Speaker 2: you just invest over three paychecks towards the end of

682
00:29:32,840 --> 00:29:35,200
Speaker 2: the year, well you're only you're only going to get

683
00:29:35,200 --> 00:29:37,040
Speaker 2: that mash on those three paychecks, and the whole rest

684
00:29:37,040 --> 00:29:40,440
Speaker 2: of the year you're missing out. And so what's actually

685
00:29:40,440 --> 00:29:42,800
Speaker 2: interesting is that this works both ways too. Let's say

686
00:29:42,880 --> 00:29:46,040
Speaker 2: you are a very aggressive investor and you're like, oh,

687
00:29:46,080 --> 00:29:47,960
Speaker 2: I want to I want to get I want to

688
00:29:47,960 --> 00:29:50,200
Speaker 2: get invested as soon as possible, and so you invest

689
00:29:50,280 --> 00:29:52,800
Speaker 2: let's just say the first three months of the year.

690
00:29:53,360 --> 00:29:55,280
Speaker 1: Well, you're literally putting like ninety percent of your paycheck

691
00:29:55,320 --> 00:29:56,160
Speaker 1: aside to hit the limit.

692
00:29:56,280 --> 00:29:59,400
Speaker 2: Yeah, exactly. And were you to do that, then each

693
00:29:59,400 --> 00:30:01,120
Speaker 2: one of those page you would get the match that

694
00:30:01,200 --> 00:30:04,600
Speaker 2: was calculated there for each paycheck, divide it out like

695
00:30:04,680 --> 00:30:07,800
Speaker 2: over the entire year. But once you stop contributing to

696
00:30:07,960 --> 00:30:11,560
Speaker 2: your four win K because you've hit your maximum contribution limit, well,

697
00:30:11,600 --> 00:30:13,560
Speaker 2: your employer again it's not going to be triggered, and

698
00:30:13,600 --> 00:30:15,440
Speaker 2: so they're not going to be matching it with dollars

699
00:30:15,680 --> 00:30:19,400
Speaker 2: because they aren't calculating it on a per pay cycle basis.

700
00:30:19,680 --> 00:30:22,200
Speaker 2: Some employers do that. It's just it's more work, and

701
00:30:22,240 --> 00:30:24,840
Speaker 2: I understand it. It's a pain in the butt for

702
00:30:24,880 --> 00:30:28,080
Speaker 2: them to basically calculate how much you're deciding to contribute

703
00:30:28,120 --> 00:30:30,040
Speaker 2: for that pay cycle to your four O one K.

704
00:30:30,640 --> 00:30:33,120
Speaker 2: But from an employee standpoint, that would be the easiest

705
00:30:33,200 --> 00:30:35,480
Speaker 2: route because then you literally they're matching dollar. You know,

706
00:30:35,480 --> 00:30:38,840
Speaker 2: they're matching how based on however much that you're putting aside.

707
00:30:39,040 --> 00:30:41,960
Speaker 2: But unfortunately that's just not how the majority of employers

708
00:30:42,000 --> 00:30:42,160
Speaker 2: do it.

709
00:30:42,240 --> 00:30:44,840
Speaker 1: Yeah, so you just have to know before you kind

710
00:30:44,880 --> 00:30:48,120
Speaker 1: of figure out how like what your contribution cycle is

711
00:30:48,120 --> 00:30:50,240
Speaker 1: going to look like. You want to know the details

712
00:30:50,240 --> 00:30:52,840
Speaker 1: of whether or not your employer's plan does. You want

713
00:30:52,880 --> 00:30:55,040
Speaker 1: to know the details contribution matching or not. And so

714
00:30:55,080 --> 00:30:58,360
Speaker 1: if your employer doesn't, let's say, offer the truer feature,

715
00:30:58,360 --> 00:31:00,520
Speaker 1: you'd be well served to do whatever and to make

716
00:31:00,520 --> 00:31:02,560
Speaker 1: sure that you regularly invest right at least up to

717
00:31:02,600 --> 00:31:05,040
Speaker 1: the match with every single paycheck, not waiting let's say

718
00:31:05,080 --> 00:31:06,800
Speaker 1: until the end of the year, like Gavin's doing right,

719
00:31:06,880 --> 00:31:08,960
Speaker 1: And his question is basically whether or not taking this

720
00:31:09,040 --> 00:31:10,600
Speaker 1: route and investing in a lump sum at the end

721
00:31:10,600 --> 00:31:13,320
Speaker 1: of the year is okay because his employer is still

722
00:31:13,320 --> 00:31:15,360
Speaker 1: going to contribute those matching dollars. And I would say

723
00:31:15,360 --> 00:31:17,040
Speaker 1: the simple answer is yes, Like, as long as you're

724
00:31:17,040 --> 00:31:20,680
Speaker 1: getting the full match, which you are because your employer

725
00:31:22,240 --> 00:31:25,880
Speaker 1: does the true up, then you're totally fine, no worries, right,

726
00:31:25,960 --> 00:31:27,960
Speaker 1: and more than anything, like more than anything, we don't

727
00:31:27,960 --> 00:31:30,280
Speaker 1: want you leaving matching contributions on the table because as

728
00:31:30,320 --> 00:31:32,920
Speaker 1: long as you're contributing enough to get the full match,

729
00:31:33,280 --> 00:31:35,720
Speaker 1: when and how you do it is really less of

730
00:31:35,760 --> 00:31:36,360
Speaker 1: a consideration.

731
00:31:36,400 --> 00:31:37,360
Speaker 2: It's more minores.

732
00:31:37,480 --> 00:31:37,680
Speaker 4: Right.

733
00:31:37,960 --> 00:31:41,400
Speaker 2: But that being said, if you and this is what

734
00:31:41,400 --> 00:31:42,959
Speaker 2: we talk about here on how to money, we get

735
00:31:43,000 --> 00:31:45,760
Speaker 2: a little nerdier with it. If you really want to

736
00:31:45,800 --> 00:31:50,040
Speaker 2: optimize those dollars that you're waiting to invest until December

737
00:31:50,200 --> 00:31:52,240
Speaker 2: towards the end of the year, well they obviously won't

738
00:31:52,240 --> 00:31:54,240
Speaker 2: be invested in the market quite as long. And since

739
00:31:54,280 --> 00:31:57,440
Speaker 2: the stock market goes up essentially three of every four years,

740
00:31:57,840 --> 00:32:00,320
Speaker 2: you're actually going to be investing at a less than

741
00:32:00,400 --> 00:32:03,880
Speaker 2: opportune time. The reality is that the sooner that you

742
00:32:03,880 --> 00:32:05,760
Speaker 2: can get your dollars invested, the sooner you can get

743
00:32:05,800 --> 00:32:07,760
Speaker 2: your dollars into your four O one K, the better

744
00:32:07,800 --> 00:32:10,200
Speaker 2: off you're going to be because that gives those dollars

745
00:32:10,200 --> 00:32:14,200
Speaker 2: more time to experience the magic of compounding returns. And

746
00:32:14,400 --> 00:32:17,280
Speaker 2: it may be more or less on a given year,

747
00:32:17,280 --> 00:32:20,000
Speaker 2: but year after year. Again, we're talking about compounding here.

748
00:32:20,000 --> 00:32:22,480
Speaker 2: It's not just the fact that it happens once. We're

749
00:32:22,480 --> 00:32:25,160
Speaker 2: talking about the fact that it just snowballs, right, it

750
00:32:25,200 --> 00:32:27,400
Speaker 2: builds upon itself. Twenty five percent of the time, you're

751
00:32:27,440 --> 00:32:28,920
Speaker 2: gonna come out ahead, like in twenty twenty two. If

752
00:32:28,920 --> 00:32:32,080
Speaker 2: you wait until December, you're like, whoo, Like, I actually

753
00:32:32,240 --> 00:32:33,920
Speaker 2: I actually made out like a bandit by waiting. But

754
00:32:33,960 --> 00:32:35,680
Speaker 2: most of the time that's not going to make it exactly.

755
00:32:35,800 --> 00:32:38,320
Speaker 2: So that would mean, then, you know, rather than waiting

756
00:32:38,360 --> 00:32:41,000
Speaker 2: to invest at the end of the year, investing regularly

757
00:32:41,040 --> 00:32:43,560
Speaker 2: with every paycheck, that would be a better pick. But

758
00:32:43,680 --> 00:32:46,200
Speaker 2: if you want to get really nerdy with it, the

759
00:32:46,240 --> 00:32:49,440
Speaker 2: superior option is going to be to invest. Invest as

760
00:32:49,520 --> 00:32:52,680
Speaker 2: aggressively as possible and as early in the year as possible.

761
00:32:53,160 --> 00:32:55,680
Speaker 2: But again, you know, we're talking about optimization here. We're

762
00:32:55,680 --> 00:32:59,080
Speaker 2: not really talking about what's right or wrong. But either way,

763
00:32:59,280 --> 00:33:02,400
Speaker 2: if by waiting to invest, either at the squeeze it

764
00:33:02,440 --> 00:33:03,920
Speaker 2: in at the beginning or if you squeeze it in

765
00:33:04,000 --> 00:33:06,760
Speaker 2: at the end of the year, either way, Gavin, for you,

766
00:33:06,600 --> 00:33:08,440
Speaker 2: you're going to be made whole and you're not leaving

767
00:33:08,480 --> 00:33:09,920
Speaker 2: any dollars on the table.

768
00:33:09,960 --> 00:33:11,760
Speaker 1: Yeah, we're not trying to put pressure on you because again,

769
00:33:11,800 --> 00:33:13,360
Speaker 1: you've got four miles to feed. So it's not like

770
00:33:13,800 --> 00:33:16,280
Speaker 1: st mex it out in January, right, I mean, but

771
00:33:16,360 --> 00:33:19,040
Speaker 1: this is something worth noting that by delaying, you're not

772
00:33:19,080 --> 00:33:20,840
Speaker 1: optimizing to the fullest extent that you could.

773
00:33:21,040 --> 00:33:21,120
Speaker 3: Ye.

774
00:33:21,520 --> 00:33:23,640
Speaker 1: By the way, you mentioned a common misconception gap that

775
00:33:23,680 --> 00:33:25,600
Speaker 1: I wanted to clear up, which is that bonuses are

776
00:33:25,640 --> 00:33:29,360
Speaker 1: taxed at higher tax rates, which is actually not true.

777
00:33:29,480 --> 00:33:32,080
Speaker 1: It kind of feels like it because more taxes withheld

778
00:33:32,080 --> 00:33:34,240
Speaker 1: from bonus dollars that are paid out. Typically we're talking

779
00:33:34,240 --> 00:33:36,600
Speaker 1: about a flat twenty two percent that the employer holds

780
00:33:36,640 --> 00:33:40,440
Speaker 1: back in taxes when they pay out a bonus, not

781
00:33:40,520 --> 00:33:42,920
Speaker 1: to mention Social Security, state taxes, Medicare, So it can

782
00:33:42,960 --> 00:33:45,720
Speaker 1: feel like, wait, I just got a ten thousand dollars bonus.

783
00:33:46,320 --> 00:33:48,240
Speaker 1: Why is it like fifty five hunderzo in my account? Like,

784
00:33:48,280 --> 00:33:51,040
Speaker 1: I don't understand. I mean everything gets sorted out though,

785
00:33:51,040 --> 00:33:52,920
Speaker 1: when you file your taxes, and so, if your effective

786
00:33:52,960 --> 00:33:55,760
Speaker 1: tax rate is lower than twenty two percent, that's going

787
00:33:55,800 --> 00:33:57,560
Speaker 1: to shake out in the form of a tax refund

788
00:33:57,640 --> 00:34:00,480
Speaker 1: for you when you file your taxes in this and so,

789
00:34:00,840 --> 00:34:03,360
Speaker 1: bonuses are awesome, and hopefully you're even more excited to

790
00:34:03,400 --> 00:34:05,640
Speaker 1: get yours this year knowing that it's not actually taxed

791
00:34:05,640 --> 00:34:06,160
Speaker 1: at a higher rate.

792
00:34:06,240 --> 00:34:06,360
Speaker 6: Man.

793
00:34:06,400 --> 00:34:08,439
Speaker 1: I hear that from people all the time. They're like, Oh,

794
00:34:08,760 --> 00:34:11,120
Speaker 1: it's a misconceptions. Love getting a bonus, but man, the

795
00:34:11,200 --> 00:34:14,120
Speaker 1: taxes suck on it, and it feels like it. But

796
00:34:14,320 --> 00:34:17,280
Speaker 1: you're gonna probably come out ahead when you file your taxes.

797
00:34:17,280 --> 00:34:19,200
Speaker 2: You're gonna get some money back. Yeah, I mean it

798
00:34:19,320 --> 00:34:20,920
Speaker 2: kind of comes back again to just some of the

799
00:34:22,360 --> 00:34:25,359
Speaker 2: most common paths that employers take, which is why when

800
00:34:25,360 --> 00:34:28,239
Speaker 2: they apply the standard twenty two percent tax rate on

801
00:34:28,520 --> 00:34:32,520
Speaker 2: bonuses earned like that, it's the potentially easiest path for

802
00:34:32,560 --> 00:34:34,920
Speaker 2: them to take, but it isn't the most optimized for

803
00:34:35,000 --> 00:34:39,000
Speaker 2: you for your own personal finances. Similar to the true

804
00:34:39,080 --> 00:34:41,359
Speaker 2: up method or the option the fact that that's there.

805
00:34:41,360 --> 00:34:43,879
Speaker 2: It's to be able to make up for the fact

806
00:34:43,920 --> 00:34:47,120
Speaker 2: that they're not doing things perfectly optimized, which if you

807
00:34:47,160 --> 00:34:48,880
Speaker 2: live in a perfect world, of course everything would be

808
00:34:48,920 --> 00:34:52,400
Speaker 2: perfectly optimized. But employers got other things don't worry about.

809
00:34:52,480 --> 00:34:54,799
Speaker 2: But Gavin, we think that you're going to be set.

810
00:34:54,880 --> 00:34:57,839
Speaker 2: We appreciate you listening to the podcast, Joel. We've got

811
00:34:57,840 --> 00:35:00,200
Speaker 2: two additional questions that we're going to get to, and

812
00:35:00,280 --> 00:35:02,840
Speaker 2: speaking of podcasts, like, we're gonna get a little meta

813
00:35:02,920 --> 00:35:05,600
Speaker 2: with it. We're going to talk about the medium of

814
00:35:05,719 --> 00:35:12,880
Speaker 2: podcasting itself plus one other right after the break.

815
00:35:18,160 --> 00:35:19,640
Speaker 1: All right, Matt, In just a second, we're going to

816
00:35:19,680 --> 00:35:22,200
Speaker 1: help a listener out who has been crushing it with

817
00:35:22,239 --> 00:35:24,879
Speaker 1: his own podcast, creating great content for a lot of years.

818
00:35:24,920 --> 00:35:26,719
Speaker 1: But how does he scale. We'll get to that one

819
00:35:26,760 --> 00:35:28,120
Speaker 1: in just a second, but let's first get to a

820
00:35:28,200 --> 00:35:30,239
Speaker 1: question from a listener who's wondering if you should build

821
00:35:30,239 --> 00:35:31,719
Speaker 1: a new house and then rent it out.

822
00:35:32,160 --> 00:35:34,640
Speaker 6: Hey, guys, this is Keith from the Oregon Coast calling

823
00:35:34,680 --> 00:35:38,960
Speaker 6: in again. I'm curious what your guys' thoughts are on

824
00:35:39,080 --> 00:35:43,600
Speaker 6: the build to rent option. As far as real estate investing,

825
00:35:44,400 --> 00:35:49,120
Speaker 6: I have several just bare ground properties that are paid

826
00:35:49,160 --> 00:35:53,560
Speaker 6: off utilities are in ready to build on. And I'm

827
00:35:53,560 --> 00:35:57,840
Speaker 6: also a builder, so I guess I'm able to build

828
00:35:58,840 --> 00:36:02,680
Speaker 6: brand new houses and then just rent them out as

829
00:36:02,680 --> 00:36:05,800
Speaker 6: opposed to like a spec house for you sell them.

830
00:36:06,400 --> 00:36:08,960
Speaker 6: So yeah, I'm just I don't hear a lot about

831
00:36:09,000 --> 00:36:13,560
Speaker 6: this option, but it seems like it could be pretty

832
00:36:13,600 --> 00:36:19,359
Speaker 6: good long term. Alternatively, I could just take the money

833
00:36:19,400 --> 00:36:21,880
Speaker 6: I would use to do that. I'd probably get it

834
00:36:21,920 --> 00:36:25,080
Speaker 6: from pulling a heelock out of my house and put

835
00:36:25,080 --> 00:36:28,960
Speaker 6: it down payment on the duplex or quad or something. Yeah.

836
00:36:28,960 --> 00:36:31,239
Speaker 6: I don't know, But what's your guys thoughts on.

837
00:36:31,160 --> 00:36:33,759
Speaker 2: This, Matt? At least this time, Keith got a question

838
00:36:33,800 --> 00:36:36,840
Speaker 2: that isn't like peering into my soul right the counseling

839
00:36:36,880 --> 00:36:40,440
Speaker 2: relational Yeah, his wife is like picking them apart after

840
00:36:40,480 --> 00:36:41,160
Speaker 2: coming to counseling.

841
00:36:42,320 --> 00:36:44,320
Speaker 1: At some point, you, Keith, and I need to commiserate

842
00:36:44,760 --> 00:36:47,759
Speaker 1: on the on the Organ Coast over Beers about the

843
00:36:48,239 --> 00:36:50,200
Speaker 1: you know how difficult it is to be to be

844
00:36:50,239 --> 00:36:53,040
Speaker 1: married to or to be in a relationship with a therapist.

845
00:36:53,080 --> 00:36:54,799
Speaker 2: And I'm going to invite myself not to sit in

846
00:36:54,840 --> 00:36:56,840
Speaker 2: on your conversation, but the drink beer and to go

847
00:36:56,920 --> 00:37:00,640
Speaker 2: hiking and laugh at us. But Keith, we really like

848
00:37:00,680 --> 00:37:03,279
Speaker 2: your question because normally we would be a little more

849
00:37:03,320 --> 00:37:07,239
Speaker 2: cautious of this approach, right, building something from scratch and

850
00:37:07,600 --> 00:37:10,160
Speaker 2: you know, with this long kind of drawn up plan

851
00:37:10,280 --> 00:37:13,919
Speaker 2: in order to have investment property. But you specifically check

852
00:37:13,960 --> 00:37:16,680
Speaker 2: a bunch of boxes. You own the land, so check

853
00:37:17,120 --> 00:37:19,520
Speaker 2: the utilities are already in the ground. That's another check.

854
00:37:19,560 --> 00:37:20,279
Speaker 2: That's awesome, like the.

855
00:37:20,200 --> 00:37:21,640
Speaker 1: Opposite of like when people are trying to sell you

856
00:37:21,719 --> 00:37:24,000
Speaker 1: lake front property. I known it's like for ten grand,

857
00:37:24,080 --> 00:37:25,440
Speaker 1: you can get this lake front spot.

858
00:37:25,520 --> 00:37:28,480
Speaker 2: Here's somebody we know that will provide septic and yeah, yeah,

859
00:37:28,480 --> 00:37:31,840
Speaker 2: all that. But Keith is also the builder, and I

860
00:37:31,880 --> 00:37:34,880
Speaker 2: think if any of those details were different, our advice

861
00:37:34,880 --> 00:37:38,240
Speaker 2: would likely be different as well. Like if Joe Shmoe

862
00:37:38,239 --> 00:37:41,600
Speaker 2: was asking about just buying random dirt in a far

863
00:37:41,640 --> 00:37:44,799
Speaker 2: off location, like no, like a country song that is,

864
00:37:45,239 --> 00:37:47,319
Speaker 2: that would be our advice. We'd say, yeah, probably not.

865
00:37:47,400 --> 00:37:49,520
Speaker 2: But it sounds like, you know, Keith, he's got to

866
00:37:49,560 --> 00:37:52,360
Speaker 2: know how ain't He's got the ability I think to

867
00:37:52,480 --> 00:37:56,719
Speaker 2: pull this off. It makes me think that we've got

868
00:37:56,760 --> 00:37:58,880
Speaker 2: a friend and maybe this is like ten twelve thirteen

869
00:37:58,920 --> 00:38:02,680
Speaker 2: years ago something like that. He in town purchased a

870
00:38:02,760 --> 00:38:05,040
Speaker 2: plot of land and the goal for him was to

871
00:38:05,040 --> 00:38:08,640
Speaker 2: build his house on that property. But unfortunately it didn't

872
00:38:08,680 --> 00:38:10,520
Speaker 2: the American dream. It did not work out for him.

873
00:38:10,680 --> 00:38:13,040
Speaker 2: Whether I think it was a combination of maybe not

874
00:38:13,080 --> 00:38:16,239
Speaker 2: having done quite as much due diligence, but also I

875
00:38:16,239 --> 00:38:18,800
Speaker 2: think maybe some slight dishonesty on the part of the cellar.

876
00:38:18,800 --> 00:38:21,080
Speaker 1: But bottom line, it was basically FEMA flood maps made

877
00:38:21,080 --> 00:38:23,279
Speaker 1: it unbuilding, could not build there, And I don't I

878
00:38:23,320 --> 00:38:25,319
Speaker 1: think he ended up he might still own the piece

879
00:38:25,320 --> 00:38:27,000
Speaker 1: of property, or maybe he donated it, And I think

880
00:38:27,040 --> 00:38:29,120
Speaker 1: he had to donate it for tax that was like

881
00:38:29,200 --> 00:38:31,640
Speaker 1: the best way she's gonna lost money much less than

882
00:38:31,680 --> 00:38:33,440
Speaker 1: bottom and the and this I think he.

883
00:38:33,840 --> 00:38:35,759
Speaker 2: Ended up ended up being like thirty thousand dollars maybe

884
00:38:35,760 --> 00:38:39,560
Speaker 2: that he'd originally originally paid for that. So Keith, for you,

885
00:38:39,920 --> 00:38:42,360
Speaker 2: we think this could be an excellent route and an

886
00:38:42,400 --> 00:38:45,959
Speaker 2: excellent path to take for everybody else out there, listen

887
00:38:46,000 --> 00:38:48,080
Speaker 2: to why we think Keith is well suited to do

888
00:38:48,120 --> 00:38:50,279
Speaker 2: this because he he truly is he is. Yeah, You're right.

889
00:38:50,280 --> 00:38:51,520
Speaker 1: A lot of other people who would say I want

890
00:38:51,520 --> 00:38:52,879
Speaker 1: to buy some land and I want to build on it.

891
00:38:53,040 --> 00:38:55,600
Speaker 1: There's this a lot you need to consider before you

892
00:38:55,640 --> 00:38:59,040
Speaker 1: go that route, and utilities are are definitely one consideration.

893
00:38:59,120 --> 00:39:01,719
Speaker 1: But this is of like Keith's superpower here, right, He'd

894
00:39:01,760 --> 00:39:03,480
Speaker 1: likely to be able to build this house for far

895
00:39:03,560 --> 00:39:05,640
Speaker 1: less than what someone else in the area would pay

896
00:39:05,680 --> 00:39:07,640
Speaker 1: for a new home, given the connections that you have

897
00:39:08,000 --> 00:39:09,759
Speaker 1: and the sweat equity that you would likely be able

898
00:39:09,800 --> 00:39:11,719
Speaker 1: to put in. Keith, it means like maybe you're doing

899
00:39:11,719 --> 00:39:15,480
Speaker 1: the tiling right, maybe you're even installing somebod the electrical

900
00:39:15,560 --> 00:39:18,200
Speaker 1: I don't know, but those factors are critical when you're

901
00:39:18,239 --> 00:39:20,240
Speaker 1: trying to figure out if this is a sound decision,

902
00:39:20,520 --> 00:39:23,640
Speaker 1: because the cost of building has gone up substantially, but

903
00:39:23,719 --> 00:39:25,640
Speaker 1: still have rents and home values and so as long

904
00:39:25,640 --> 00:39:27,279
Speaker 1: as the numbers make sense for you and you're not

905
00:39:27,360 --> 00:39:30,040
Speaker 1: taking on crazy high interest debt to pull this off,

906
00:39:30,320 --> 00:39:33,160
Speaker 1: it seems like a sound decision to us. And it

907
00:39:33,200 --> 00:39:35,400
Speaker 1: also makes me think, Matt he mentioned buying a duplex

908
00:39:35,480 --> 00:39:38,439
Speaker 1: or a triplex. Well, Keith, what if when you build

909
00:39:38,480 --> 00:39:40,600
Speaker 1: this house a hybrid approach, you build a duplex or

910
00:39:40,640 --> 00:39:42,719
Speaker 1: a trilex, but you build a next one that's I

911
00:39:42,719 --> 00:39:44,720
Speaker 1: had a neighbor across the street back when we lived

912
00:39:44,800 --> 00:39:47,680
Speaker 1: in town as well, and he built a really nice duplex.

913
00:39:47,719 --> 00:39:49,640
Speaker 1: He lived in one half and he rented out the other.

914
00:39:50,000 --> 00:39:52,879
Speaker 1: He eventually moved away from that from that part of town.

915
00:39:52,920 --> 00:39:54,960
Speaker 1: He lives elsewhere now and he rents out both and

916
00:39:54,960 --> 00:39:57,759
Speaker 1: this has been like a money maker for him hand

917
00:39:57,800 --> 00:39:59,719
Speaker 1: over fists for a whole lot of years. So if

918
00:39:59,719 --> 00:40:02,839
Speaker 1: you nice duplex, I think maybe that is the best

919
00:40:02,840 --> 00:40:03,480
Speaker 1: of both worlds.

920
00:40:03,719 --> 00:40:06,560
Speaker 2: That's right. Also, before we keep talking about real estate, Keith,

921
00:40:06,560 --> 00:40:08,799
Speaker 2: he didn't mention any of his specifics. But this is

922
00:40:08,880 --> 00:40:12,440
Speaker 2: also assuming that Keith, that you are already maxing out

923
00:40:12,440 --> 00:40:14,800
Speaker 2: your retirement accounts, which are going to be the easy

924
00:40:14,800 --> 00:40:17,239
Speaker 2: button when it comes to growing your net worth. But

925
00:40:17,320 --> 00:40:19,560
Speaker 2: just because it's easy like that doesn't mean that investing

926
00:40:19,600 --> 00:40:23,080
Speaker 2: in the overall market that is an inferior option. And

927
00:40:23,520 --> 00:40:25,200
Speaker 2: because in many ways it's actually going to be the

928
00:40:25,239 --> 00:40:27,799
Speaker 2: superior option, right, Like you're going to be more diversified,

929
00:40:28,360 --> 00:40:30,560
Speaker 2: it can be fully automated, you don't have to worry

930
00:40:30,600 --> 00:40:33,520
Speaker 2: about managing the properties. And of course, like there's the

931
00:40:33,640 --> 00:40:36,080
Speaker 2: chance that you may not quite get the juicy returns

932
00:40:36,080 --> 00:40:39,160
Speaker 2: like you would with real estate. But that doesn't mean

933
00:40:39,200 --> 00:40:42,520
Speaker 2: that you should skip investing of course, in boring tax

934
00:40:42,560 --> 00:40:45,320
Speaker 2: advantaged accounts. And keep in mind too, like one of

935
00:40:45,360 --> 00:40:48,160
Speaker 2: the things you said was you haven't heard many folks

936
00:40:48,200 --> 00:40:50,960
Speaker 2: talk about taking this path. And I think the reason

937
00:40:50,960 --> 00:40:54,480
Speaker 2: that is is because oftentimes you have real estate developers.

938
00:40:54,520 --> 00:40:56,480
Speaker 2: You've got developers, right, and they are the ones who

939
00:40:56,560 --> 00:40:58,799
Speaker 2: are like choosing the sites and figuring out how many

940
00:40:58,880 --> 00:41:02,080
Speaker 2: houses they're going to kind of cran put on the land.

941
00:41:02,880 --> 00:41:06,120
Speaker 2: And then you've got property real estate managers. They're typically

942
00:41:06,280 --> 00:41:08,600
Speaker 2: specialized in what it is that they do. From a

943
00:41:08,600 --> 00:41:10,799
Speaker 2: business standpoint, that makes a lot of sense. But as

944
00:41:10,800 --> 00:41:14,279
Speaker 2: an individual, Keith, if you want to be scrappy and

945
00:41:14,440 --> 00:41:18,120
Speaker 2: are willing to learn and do both of these things, man,

946
00:41:18,160 --> 00:41:20,080
Speaker 2: you've got the ability to see this thing through from

947
00:41:20,200 --> 00:41:22,799
Speaker 2: soup to nuts, right like you are. You've got the

948
00:41:22,880 --> 00:41:24,719
Speaker 2: plots of land, you can figure out like how it

949
00:41:24,800 --> 00:41:26,640
Speaker 2: is maybe even that you want to orient the house

950
00:41:26,760 --> 00:41:28,360
Speaker 2: is on the property, like you have an ability to

951
00:41:28,360 --> 00:41:32,080
Speaker 2: create some awesome places here, but then see it through,

952
00:41:32,160 --> 00:41:35,120
Speaker 2: right like get it ready, show it, manage it. And

953
00:41:35,120 --> 00:41:37,960
Speaker 2: with that in mind, again, like Joel said, this is

954
00:41:38,160 --> 00:41:40,200
Speaker 2: it's almost like a. It's a superpower, but it's almost

955
00:41:40,200 --> 00:41:43,600
Speaker 2: like an unfair advantage that you have compared to anybody

956
00:41:43,600 --> 00:41:45,359
Speaker 2: else who's looking to get into real estate.

957
00:41:45,440 --> 00:41:47,160
Speaker 1: Yeah, so put it to use. And especially if you're

958
00:41:47,160 --> 00:41:49,040
Speaker 1: going to live in half of it, maybe maybe you say, oh,

959
00:41:49,080 --> 00:41:50,960
Speaker 1: for two years, I'm willing to live in the property,

960
00:41:51,000 --> 00:41:53,400
Speaker 1: and maybe that's going to make this and even better,

961
00:41:54,200 --> 00:41:56,279
Speaker 1: make it even make more sense, right, make it even

962
00:41:56,320 --> 00:41:58,600
Speaker 1: better investment. But assuming you're good to go right and

963
00:41:58,880 --> 00:42:00,719
Speaker 1: you're ready to put that superpower to use, it's really

964
00:42:00,760 --> 00:42:03,399
Speaker 1: important to make sure that you're performing your due diligence right.

965
00:42:03,680 --> 00:42:06,120
Speaker 1: Gathering the data, running the numbers is a really important

966
00:42:06,120 --> 00:42:08,399
Speaker 1: step in this whole process. You got to figure out

967
00:42:08,440 --> 00:42:10,000
Speaker 1: how much is this going to is this house or

968
00:42:10,120 --> 00:42:12,560
Speaker 1: multi family resident's going to cost me to build? And

969
00:42:12,640 --> 00:42:14,200
Speaker 1: what are you likely to be able to get in

970
00:42:14,280 --> 00:42:17,040
Speaker 1: rent for it? Is there a dearth of rental units

971
00:42:17,080 --> 00:42:20,520
Speaker 1: where you currently live? Like knowing all good information to

972
00:42:20,960 --> 00:42:23,200
Speaker 1: be looking up into local dynamics are crucial in the

973
00:42:23,200 --> 00:42:24,120
Speaker 1: real estate right and.

974
00:42:24,080 --> 00:42:26,920
Speaker 2: Local zoning as well. Like, so the fact that you

975
00:42:26,920 --> 00:42:28,840
Speaker 2: mentioned that the utility is already in the ground, I

976
00:42:28,840 --> 00:42:32,520
Speaker 2: picture a development of a bunch of houses, and maybe

977
00:42:32,719 --> 00:42:35,680
Speaker 2: zoning may not allow for multi family, or maybe there's

978
00:42:35,680 --> 00:42:37,600
Speaker 2: an hoa that keeps you from being able to rent

979
00:42:37,600 --> 00:42:39,560
Speaker 2: that out. These are obviously all things that you want

980
00:42:39,600 --> 00:42:40,880
Speaker 2: to make sure that you have a good grasp on.

981
00:42:41,080 --> 00:42:41,239
Speaker 6: Yeah.

982
00:42:41,280 --> 00:42:42,759
Speaker 1: Yeah, And I love that he's taking a long term

983
00:42:42,760 --> 00:42:45,239
Speaker 1: by the way. I think it's really important because you

984
00:42:45,320 --> 00:42:47,120
Speaker 1: got to know the local dynamics. But you also got

985
00:42:47,120 --> 00:42:50,280
Speaker 1: to say, all right, well, how long am I willing

986
00:42:50,320 --> 00:42:51,959
Speaker 1: to hold on to this? And it sounds like Keith

987
00:42:52,040 --> 00:42:54,680
Speaker 1: is willing to make this decision and build this house

988
00:42:54,719 --> 00:42:57,000
Speaker 1: and manage it as a rental for years and years

989
00:42:57,000 --> 00:42:58,560
Speaker 1: to come. And so if the numbers make sense from

990
00:42:58,560 --> 00:43:01,799
Speaker 1: the get go, the longer your ownership timeline, the better

991
00:43:01,800 --> 00:43:03,279
Speaker 1: it's going to perform for you over the years. When

992
00:43:03,320 --> 00:43:05,120
Speaker 1: we had Chad Carson on recently, what did he say

993
00:43:05,320 --> 00:43:08,560
Speaker 1: that owning a house, owning rental property over the long term,

994
00:43:08,600 --> 00:43:10,680
Speaker 1: Eventually it starts out as a part time job and

995
00:43:10,719 --> 00:43:12,920
Speaker 1: it turns into a blue chip stock and so the

996
00:43:13,239 --> 00:43:15,000
Speaker 1: pain on the front end can pay off in the

997
00:43:15,000 --> 00:43:17,520
Speaker 1: back on the back end in a meaningful way. So Keith,

998
00:43:17,600 --> 00:43:20,440
Speaker 1: if yeah, if the numbers make sense, even in the

999
00:43:20,440 --> 00:43:23,680
Speaker 1: infasy of the project. Then I think it's it's only

1000
00:43:23,680 --> 00:43:24,839
Speaker 1: going to get better over the years.

1001
00:43:24,880 --> 00:43:28,080
Speaker 2: It really makes sense down the road, assuming there's not

1002
00:43:28,600 --> 00:43:31,000
Speaker 2: something terrible that happens next you know, next door or

1003
00:43:31,920 --> 00:43:35,880
Speaker 2: down there. But Keith, we appreciate your question and we

1004
00:43:35,920 --> 00:43:38,480
Speaker 2: really like how you are thinking about this potential real

1005
00:43:38,560 --> 00:43:41,000
Speaker 2: estate investment. Joel, let's get to our last question. This

1006
00:43:41,120 --> 00:43:44,719
Speaker 2: is from Doug and he has an affinity for the eighties.

1007
00:43:45,320 --> 00:43:50,520
Speaker 7: Hey, Matt, Joel. Doug here from Philadelphia, and I have

1008
00:43:50,520 --> 00:43:53,480
Speaker 7: a question for you that is not a money question.

1009
00:43:54,440 --> 00:43:56,760
Speaker 7: I'm pretty good on that front and have been listening

1010
00:43:56,760 --> 00:43:59,600
Speaker 7: to you guys and taking your advice now for almost

1011
00:43:59,640 --> 00:44:03,239
Speaker 7: a year. This is more of a podcasting question. There

1012
00:44:03,239 --> 00:44:05,520
Speaker 7: are a lot of different money podcasts out there, and

1013
00:44:05,560 --> 00:44:08,440
Speaker 7: you guys seem to have built quite an audience for yourself.

1014
00:44:09,400 --> 00:44:13,160
Speaker 7: I have a podcast on eighties movies, sort of a

1015
00:44:13,200 --> 00:44:17,279
Speaker 7: comedy podcast, and then looking to sort of breakthrough or

1016
00:44:17,280 --> 00:44:19,880
Speaker 7: build an audience. I mean, it's just a hobby. I

1017
00:44:19,880 --> 00:44:22,160
Speaker 7: know there are services out there that will help promote

1018
00:44:22,200 --> 00:44:24,560
Speaker 7: your show. Blah blah blah. I certainly don't want to

1019
00:44:24,560 --> 00:44:28,520
Speaker 7: spend money. Is there any advice that you have, any

1020
00:44:28,880 --> 00:44:32,480
Speaker 7: sort of outlets or maybe how you guys got started.

1021
00:44:32,520 --> 00:44:35,520
Speaker 7: It's something that I really haven't heard you guys talk about.

1022
00:44:35,560 --> 00:44:38,080
Speaker 7: And I know that this is not a money question,

1023
00:44:38,200 --> 00:44:40,440
Speaker 7: So if it doesn't make the show, I totally get it.

1024
00:44:41,280 --> 00:44:45,680
Speaker 7: But anyway, thank you so much, shameless plug. The podcast

1025
00:44:45,800 --> 00:44:48,000
Speaker 7: is good times, great movies. I don't know you can

1026
00:44:48,040 --> 00:44:49,520
Speaker 7: cut that out. You don't need to play that if

1027
00:44:49,560 --> 00:44:52,040
Speaker 7: you don't want to. All right, thanks guys. I really

1028
00:44:52,160 --> 00:44:53,600
Speaker 7: enjoy the show, Doug.

1029
00:44:53,760 --> 00:44:56,120
Speaker 2: We're not cutting it out. That totally gets to stay

1030
00:44:56,320 --> 00:44:58,120
Speaker 2: for everybody to hear so that they can check out

1031
00:44:58,120 --> 00:44:59,359
Speaker 2: your podcast. People should listen.

1032
00:44:59,360 --> 00:45:01,520
Speaker 1: I wouldn't listen to a couple of episodes and and

1033
00:45:01,920 --> 00:45:03,359
Speaker 1: you know, of course the one I look for Matt,

1034
00:45:03,360 --> 00:45:04,600
Speaker 1: what's my favorite eighties movie?

1035
00:45:05,880 --> 00:45:09,040
Speaker 2: Alf alf? Was he in a movie that would actually

1036
00:45:09,160 --> 00:45:10,760
Speaker 2: have been a good pick. That's a good guess.

1037
00:45:10,840 --> 00:45:14,080
Speaker 1: But no Blood Sport with John clap damn. Oh classic

1038
00:45:14,160 --> 00:45:16,840
Speaker 1: Forest Whitaker. I mean that that's a class. He was

1039
00:45:16,840 --> 00:45:18,879
Speaker 1: like trying to hunt down John clop band. Yeah really,

1040
00:45:18,960 --> 00:45:21,880
Speaker 1: Oh yeah, the Underground Fighting Arena, remember that, dude.

1041
00:45:21,960 --> 00:45:25,719
Speaker 2: I just remember Jean Claude Vandam doing the splits And yes,

1042
00:45:25,960 --> 00:45:28,960
Speaker 2: it was like a cultural phenomenon, right, Like, basically, as

1043
00:45:29,000 --> 00:45:30,279
Speaker 2: a kid, you knew that if you could do the

1044
00:45:30,320 --> 00:45:33,440
Speaker 2: splits like like him, somehow you'd get just as ripped.

1045
00:45:34,440 --> 00:45:36,600
Speaker 2: Somehow you'd be able to kick everybody's butt. And it's

1046
00:45:36,640 --> 00:45:37,160
Speaker 2: just science.

1047
00:45:37,280 --> 00:45:39,480
Speaker 1: I've managed to never do any of the above things.

1048
00:45:39,760 --> 00:45:43,040
Speaker 1: But yeah, actually Doug covered blood Sport in episode ninety five,

1049
00:45:43,080 --> 00:45:45,279
Speaker 1: So if you're interested in hearing more about what an

1050
00:45:45,280 --> 00:45:46,920
Speaker 1: epic movie that is, go back and listen to that.

1051
00:45:46,960 --> 00:45:48,919
Speaker 1: Well we do it in the show notes. But yeah,

1052
00:45:49,040 --> 00:45:53,319
Speaker 1: he's blinded at the end, and he's like, yes, John Lee, oh.

1053
00:45:53,239 --> 00:45:53,839
Speaker 2: It's so good.

1054
00:45:54,520 --> 00:45:56,399
Speaker 1: But Doug, we're glad you're gett your show off the ground.

1055
00:45:56,400 --> 00:45:58,560
Speaker 1: And he's been at it for like two hundred something episodes,

1056
00:45:59,200 --> 00:46:00,920
Speaker 1: but he's that's right. There are a lot of personal

1057
00:46:00,920 --> 00:46:02,520
Speaker 1: finance podcasts, and there are a lot of good ones

1058
00:46:02,560 --> 00:46:04,960
Speaker 1: out there too. We're really thankful that How to Money

1059
00:46:05,000 --> 00:46:08,480
Speaker 1: listeners listen to this show and that they trust us.

1060
00:46:08,480 --> 00:46:10,400
Speaker 1: And so I don't know exactly, Matt, I don't know

1061
00:46:10,400 --> 00:46:13,480
Speaker 1: if I could boil it down to like how or

1062
00:46:13,520 --> 00:46:17,080
Speaker 1: why people listen to us the seven steps, right, We're

1063
00:46:17,120 --> 00:46:19,160
Speaker 1: not going to have that per se, hopefully, it's because

1064
00:46:19,160 --> 00:46:21,759
Speaker 1: we have a passion for the topic. Hopefully it's because

1065
00:46:21,760 --> 00:46:24,080
Speaker 1: we're decently well versed in it, and hopefully it's because

1066
00:46:24,120 --> 00:46:25,359
Speaker 1: we're trustworthy as well.

1067
00:46:25,440 --> 00:46:29,640
Speaker 2: Yeah, we've resonated with a specific audience, but also we've

1068
00:46:29,640 --> 00:46:32,040
Speaker 2: been consistent, right, because one of the things, Doug, I'm

1069
00:46:32,040 --> 00:46:35,239
Speaker 2: sure that you've noticed is that the podcasting space is crowded.

1070
00:46:35,880 --> 00:46:37,840
Speaker 2: So you were talking about Europe Joel at the beginning

1071
00:46:37,840 --> 00:46:39,760
Speaker 2: of the episode. It's kind of like Europe in July,

1072
00:46:40,239 --> 00:46:42,880
Speaker 2: which is why you should travel during shoulder season. But

1073
00:46:43,040 --> 00:46:45,480
Speaker 2: it is totally true that there are basically millions of

1074
00:46:45,480 --> 00:46:48,000
Speaker 2: podcasts out there who are vying for listening time, but

1075
00:46:48,040 --> 00:46:51,160
Speaker 2: a huge percentage of this podcast that exists, well they've

1076
00:46:51,200 --> 00:46:54,560
Speaker 2: only released one single episode, and then another massive chunk

1077
00:46:54,600 --> 00:46:57,719
Speaker 2: have only released something like ten episodes. So with you

1078
00:46:57,800 --> 00:47:02,760
Speaker 2: being in the hundreds, I think consistency clearly isn't a problem.

1079
00:47:02,800 --> 00:47:05,799
Speaker 2: That's like step one, right, Yeah, it goes there, but

1080
00:47:06,040 --> 00:47:07,920
Speaker 2: I know for us that was sort of one of

1081
00:47:08,000 --> 00:47:10,840
Speaker 2: the first things that we focused on was to be

1082
00:47:11,400 --> 00:47:14,080
Speaker 2: incredibly consistent not only with making sure that we that

1083
00:47:14,120 --> 00:47:16,239
Speaker 2: we did it, but just the same time every week

1084
00:47:16,239 --> 00:47:19,000
Speaker 2: as well. Because we wanted to create something regular that

1085
00:47:19,600 --> 00:47:22,520
Speaker 2: listeners were looking forward to. They knew that, like, oh,

1086
00:47:22,680 --> 00:47:25,080
Speaker 2: at the time was Wednesday. That's when our first episode.

1087
00:47:25,080 --> 00:47:27,359
Speaker 2: When when we only had one episode, we would release

1088
00:47:27,440 --> 00:47:30,160
Speaker 2: them on Wednesdays. But you want to start building in

1089
00:47:30,200 --> 00:47:32,719
Speaker 2: that regularity. And as you are starting to build up

1090
00:47:32,719 --> 00:47:35,200
Speaker 2: that base of listeners, what they used to call it

1091
00:47:35,239 --> 00:47:38,560
Speaker 2: in the world of radio was appointment listening, right, Okay,

1092
00:47:38,600 --> 00:47:40,440
Speaker 2: it's like, oh, at six oh eight, you know when

1093
00:47:40,480 --> 00:47:42,440
Speaker 2: to tune in, Yeah, your favorite host is going to

1094
00:47:42,480 --> 00:47:43,840
Speaker 2: come on and they're going to talk about this or

1095
00:47:43,880 --> 00:47:47,480
Speaker 2: whatever like, And so that's kind of what we wanted was, Hey,

1096
00:47:47,840 --> 00:47:50,680
Speaker 2: every week, you get used to listening and learning, and

1097
00:47:51,400 --> 00:47:53,680
Speaker 2: you kind of keep doing it because hopefully it's helping

1098
00:47:53,719 --> 00:47:54,239
Speaker 2: you and it's fun.

1099
00:47:54,320 --> 00:47:56,759
Speaker 1: It's a part of your routine, right exactly. And Matt,

1100
00:47:56,760 --> 00:47:59,319
Speaker 1: we also learned a lesson pretty early on when people

1101
00:47:59,320 --> 00:48:01,480
Speaker 1: thought they were turning into a personal finance podcast and

1102
00:48:01,480 --> 00:48:03,160
Speaker 1: we talked about beer for like ten minutes at the beginning.

1103
00:48:03,160 --> 00:48:05,799
Speaker 2: You remember that I do. Yeah, Well, early early on

1104
00:48:06,040 --> 00:48:08,319
Speaker 2: we also called it poor not poor Yeah, like you

1105
00:48:08,360 --> 00:48:09,279
Speaker 2: poor beer not.

1106
00:48:09,600 --> 00:48:12,600
Speaker 1: Poor bro, which is also just a confusing name, also

1107
00:48:12,640 --> 00:48:14,640
Speaker 1: a tong Twister. We had to change over the marketing

1108
00:48:15,560 --> 00:48:17,800
Speaker 1: to appeal to the audience that we're looking for as well.

1109
00:48:18,120 --> 00:48:20,000
Speaker 1: But obviously we're fans of craft beer and we included

1110
00:48:20,040 --> 00:48:22,000
Speaker 1: in the show it's a part of our vibe. But

1111
00:48:22,080 --> 00:48:24,000
Speaker 1: over time we found more subtle ways that we've been

1112
00:48:24,000 --> 00:48:26,160
Speaker 1: into the show, and so for instance, asking our guests

1113
00:48:26,160 --> 00:48:28,200
Speaker 1: about their craft beer equivalent, that's a great way for

1114
00:48:28,239 --> 00:48:30,360
Speaker 1: it to be baked into the show, but dominating the

1115
00:48:30,360 --> 00:48:32,879
Speaker 1: initial most important ten minutes of our conversation with beer

1116
00:48:32,920 --> 00:48:35,479
Speaker 1: talk not so great, especially when people are like looking

1117
00:48:35,480 --> 00:48:38,160
Speaker 1: for money, advice and practical help in that department. So

1118
00:48:39,040 --> 00:48:40,600
Speaker 1: of course you don't want to neuter your show and

1119
00:48:40,640 --> 00:48:43,319
Speaker 1: remove all personality from it, but finding a way to

1120
00:48:43,320 --> 00:48:46,440
Speaker 1: garner feedback where you're listening to any critiques can help

1121
00:48:46,480 --> 00:48:49,240
Speaker 1: you to refine your podmat We had an email address

1122
00:48:49,280 --> 00:48:52,160
Speaker 1: specifically dedicated to that, right it was it was like

1123
00:48:52,200 --> 00:48:54,200
Speaker 1: how tomoney dot com slash get better. I don't know

1124
00:48:54,320 --> 00:48:56,279
Speaker 1: the yeah, the RL like that alive or not, but

1125
00:48:56,440 --> 00:48:58,319
Speaker 1: that was the way people could submit negative feedback and

1126
00:48:58,360 --> 00:49:00,359
Speaker 1: say like listen, you guys suck on this, you really

1127
00:49:00,400 --> 00:49:01,120
Speaker 1: need to improve on.

1128
00:49:01,080 --> 00:49:02,360
Speaker 2: This, or constructive criticism.

1129
00:49:02,400 --> 00:49:04,279
Speaker 1: I can't believe you said this always helpful, and so

1130
00:49:04,360 --> 00:49:07,400
Speaker 1: we try to listen from that feedback and make adjustments

1131
00:49:07,440 --> 00:49:09,560
Speaker 1: because yeah, we're learning on.

1132
00:49:09,480 --> 00:49:11,600
Speaker 2: The fly too. Yeah, yeah, we are always trying to

1133
00:49:11,719 --> 00:49:13,879
Speaker 2: create a better product at the end of the day.

1134
00:49:14,000 --> 00:49:16,080
Speaker 2: And that being said, like I'm going to take this

1135
00:49:16,080 --> 00:49:18,600
Speaker 2: opportunity if you have some feedback for us, totally let

1136
00:49:18,680 --> 00:49:20,880
Speaker 2: us know. I think we still have that page up.

1137
00:49:21,200 --> 00:49:23,359
Speaker 2: If I think forward slash, get better or do better.

1138
00:49:23,400 --> 00:49:26,200
Speaker 2: Maybe that was it, but either way, just email us.

1139
00:49:26,239 --> 00:49:29,000
Speaker 2: Email us at howtomneypod at gmail dot com. It goes

1140
00:49:29,040 --> 00:49:32,440
Speaker 2: to both Joel and I and we always read those emails.

1141
00:49:32,800 --> 00:49:34,640
Speaker 2: But Doug mentioned some of those different services that you

1142
00:49:34,640 --> 00:49:37,200
Speaker 2: can pay to promote your show. Obviously, don't do that

1143
00:49:37,280 --> 00:49:39,560
Speaker 2: because a lot of those are scams. I'm sure you're

1144
00:49:39,600 --> 00:49:43,840
Speaker 2: aware of that. Just today I dove into the what

1145
00:49:44,120 --> 00:49:47,040
Speaker 2: are the message requests in Instagram which I only look

1146
00:49:47,080 --> 00:49:50,759
Speaker 2: at like once every quarter. Basically I'm guessing like eighty

1147
00:49:50,760 --> 00:49:53,719
Speaker 2: percent of them are They're so there's like something like

1148
00:49:53,800 --> 00:49:57,440
Speaker 2: thirty promotion things where it's just like for ten dollars,

1149
00:49:57,560 --> 00:49:59,360
Speaker 2: you get one thousand or one hundred new, you know,

1150
00:49:59,360 --> 00:50:00,879
Speaker 2: one hundred new All of.

1151
00:50:00,840 --> 00:50:03,000
Speaker 1: That kind of stuffs. Every like friend request I got

1152
00:50:03,000 --> 00:50:05,239
Speaker 1: on LinkedIn is the same thing exactly. And you know

1153
00:50:05,320 --> 00:50:08,200
Speaker 1: your follower count or those downloads that you know they

1154
00:50:08,280 --> 00:50:10,480
Speaker 1: might go up, but that might just be the product

1155
00:50:10,480 --> 00:50:13,080
Speaker 1: of bots. So I wouldn't trust any of those actual

1156
00:50:13,920 --> 00:50:17,239
Speaker 1: you know, those requests, those Internet scam artists who promise.

1157
00:50:17,000 --> 00:50:19,319
Speaker 2: To raise the profile of your show. And I also

1158
00:50:19,400 --> 00:50:22,520
Speaker 2: want to mention that you're probably narrow casting with the

1159
00:50:22,640 --> 00:50:25,359
Speaker 2: content of your show, right. This isn't a problem though,

1160
00:50:25,680 --> 00:50:27,799
Speaker 2: given what it is you talk about, given the length

1161
00:50:27,840 --> 00:50:29,839
Speaker 2: of your show, it's just likely I think that you're

1162
00:50:29,840 --> 00:50:34,680
Speaker 2: going to have fewer, yet more rabid listeners and fans

1163
00:50:34,920 --> 00:50:38,200
Speaker 2: of good Times what was it Great, Good Times? Great movies. Yeah,

1164
00:50:38,280 --> 00:50:41,240
Speaker 2: So I'm not sure if you're looking to monetize the podcast,

1165
00:50:41,280 --> 00:50:44,239
Speaker 2: but if you are taking the route of Patreon or

1166
00:50:44,400 --> 00:50:48,040
Speaker 2: buy my Coffee, these can be great ways, Like those

1167
00:50:48,080 --> 00:50:51,280
Speaker 2: platforms can help to just turn some of those diehard

1168
00:50:51,320 --> 00:50:54,680
Speaker 2: listeners into some actual money where you're able to monetize

1169
00:50:54,719 --> 00:50:57,000
Speaker 2: the show gradually. It doesn't have to be this all

1170
00:50:57,120 --> 00:50:59,120
Speaker 2: or nothing kind of thing. I think there are ways

1171
00:50:59,360 --> 00:51:01,680
Speaker 2: for folks to kind to kind of dabble and kind

1172
00:51:01,680 --> 00:51:05,399
Speaker 2: of start offsetting some costs and maybe maybe eventually you're, oh, man,

1173
00:51:06,080 --> 00:51:09,799
Speaker 2: are we actually generating an income? That would of course

1174
00:51:09,840 --> 00:51:10,480
Speaker 2: be an awesome thing.

1175
00:51:10,480 --> 00:51:12,200
Speaker 1: I mean, the real way to have the most successful

1176
00:51:12,239 --> 00:51:14,920
Speaker 1: podcast is to pivot into a crime show, because that's

1177
00:51:14,960 --> 00:51:17,000
Speaker 1: what people love and listen to the most. And that's

1178
00:51:17,040 --> 00:51:18,520
Speaker 1: what actually Matt and I are going to do. Starting

1179
00:51:18,560 --> 00:51:21,239
Speaker 1: next week. We're ditching the personal finance that we're going

1180
00:51:21,280 --> 00:51:23,600
Speaker 1: to create. We're going to commit the crimes. Yeah yeah,

1181
00:51:23,719 --> 00:51:25,000
Speaker 1: and then we're gonna detail it along the way.

1182
00:51:25,120 --> 00:51:27,439
Speaker 2: We're gonna document it. It's gonna be it's gonna be insane.

1183
00:51:27,480 --> 00:51:30,359
Speaker 1: We're gonna hide in the woods in trees, and we'll

1184
00:51:30,400 --> 00:51:33,080
Speaker 1: be on the run for hopefully years. But the quietly

1185
00:51:33,120 --> 00:51:36,840
Speaker 1: podcasting like Blair Witch style about right, that would actually

1186
00:51:36,880 --> 00:51:39,520
Speaker 1: think about it, that would crush because you were creating

1187
00:51:39,560 --> 00:51:40,480
Speaker 1: a show in real.

1188
00:51:40,320 --> 00:51:43,480
Speaker 2: Time and in the new run, yeah, you're on the run.

1189
00:51:43,560 --> 00:51:46,320
Speaker 2: But then I guess you would get deplatformed, right like

1190
00:51:46,360 --> 00:51:48,480
Speaker 2: they would, because they wouldn't want that going out unless

1191
00:51:48,520 --> 00:51:51,000
Speaker 2: somehow you had control over your platform, you know, like

1192
00:51:51,040 --> 00:51:55,000
Speaker 2: if you were you know, Elon musk Rich, you can

1193
00:51:55,040 --> 00:51:58,200
Speaker 2: control the means of which you're communicating with folks. Right, Well,

1194
00:51:58,360 --> 00:51:59,120
Speaker 2: so enough.

1195
00:51:59,000 --> 00:52:00,839
Speaker 1: Of that, and if you or you'd have other ways

1196
00:52:00,880 --> 00:52:03,279
Speaker 1: to promote your podcasts, for sure, But and I of

1197
00:52:03,320 --> 00:52:06,040
Speaker 1: course I'm joking, But the real reality is there's certain

1198
00:52:06,360 --> 00:52:09,840
Speaker 1: genres and certain types of podcasts that just have more

1199
00:52:10,040 --> 00:52:13,440
Speaker 1: purchase with a broader audience, right, And so I think

1200
00:52:13,719 --> 00:52:16,040
Speaker 1: a personal finance podcast it's not going to be as

1201
00:52:16,080 --> 00:52:18,600
Speaker 1: listened to as one of the more popular long form

1202
00:52:18,640 --> 00:52:21,440
Speaker 1: interview or crime podcasts. That's okay, But it's the thing

1203
00:52:21,440 --> 00:52:23,520
Speaker 1: that we want to create. And so you're creating the

1204
00:52:23,560 --> 00:52:25,439
Speaker 1: thing you want to create, and that's the most important part.

1205
00:52:26,160 --> 00:52:28,239
Speaker 2: Yeah. I think if you're this far into it, you

1206
00:52:28,239 --> 00:52:30,440
Speaker 2: have found your people. Yeah, and that is what's important.

1207
00:52:30,480 --> 00:52:30,800
Speaker 6: Yeah.

1208
00:52:30,880 --> 00:52:31,160
Speaker 2: Yeah.

1209
00:52:31,160 --> 00:52:33,120
Speaker 1: And the other thing, I mean, Seth Godin talks about

1210
00:52:33,160 --> 00:52:35,360
Speaker 1: the minimum viable audience, and I think you have to

1211
00:52:35,360 --> 00:52:37,440
Speaker 1: figure out, Okay, what is that for me? If I've

1212
00:52:37,480 --> 00:52:41,160
Speaker 1: got fifteen hundred, eighteen hundred, two thousand people listening every

1213
00:52:41,200 --> 00:52:43,880
Speaker 1: single episode I create, Well, would I show up to

1214
00:52:45,239 --> 00:52:47,160
Speaker 1: a lecture hall if two thousand people wanted to listen

1215
00:52:47,200 --> 00:52:49,480
Speaker 1: to me talk about eighties movies? Heck yeah I would, right,

1216
00:52:49,520 --> 00:52:51,360
Speaker 1: because I'm that passionate about it and to see that

1217
00:52:51,440 --> 00:52:53,279
Speaker 1: many people in one place, But sometimes we look at

1218
00:52:53,280 --> 00:52:55,440
Speaker 1: it as numbers on a screen when these are real

1219
00:52:55,520 --> 00:52:58,000
Speaker 1: human people digesting our content, which is super cool. So

1220
00:52:58,120 --> 00:53:00,520
Speaker 1: think about it like that and then also realize, actually,

1221
00:53:00,719 --> 00:53:02,799
Speaker 1: there's a lot of people I'm speaking to, a ton

1222
00:53:02,840 --> 00:53:04,919
Speaker 1: of people who really like and care about the same

1223
00:53:04,960 --> 00:53:08,520
Speaker 1: thing I care about, and so I love that. Doug

1224
00:53:08,560 --> 00:53:10,600
Speaker 1: called it a hobby, like I think the number one

1225
00:53:10,640 --> 00:53:12,239
Speaker 1: rule of podcasting is that you should do it if

1226
00:53:12,280 --> 00:53:14,240
Speaker 1: you feel compelled to get a message out into the world.

1227
00:53:14,400 --> 00:53:16,600
Speaker 1: You've got to love it, and it's okay to want

1228
00:53:16,640 --> 00:53:18,839
Speaker 1: to grow, but don't forget the reason you started it

1229
00:53:18,880 --> 00:53:23,080
Speaker 1: and why you take the time every week to continue creating. So, Matt,

1230
00:53:23,360 --> 00:53:25,200
Speaker 1: the way we started was like literally we said, hey,

1231
00:53:25,200 --> 00:53:27,080
Speaker 1: we're going to be triple A at everything. We're not

1232
00:53:27,080 --> 00:53:28,560
Speaker 1: going to be pro level because that would take too

1233
00:53:28,600 --> 00:53:30,319
Speaker 1: much time, too much effort. But as long as we're

1234
00:53:30,400 --> 00:53:32,560
Speaker 1: hitting triple A marks, as long as we're professional, doing

1235
00:53:32,800 --> 00:53:35,680
Speaker 1: our best, and we're being consistent, like you said, and

1236
00:53:35,680 --> 00:53:37,759
Speaker 1: then we try to get on another podcasts to kind

1237
00:53:37,800 --> 00:53:40,879
Speaker 1: of raise the profile of our show and help other

1238
00:53:40,920 --> 00:53:43,000
Speaker 1: people find out were not just podcasts that did the

1239
00:53:43,000 --> 00:53:45,760
Speaker 1: exact same thing we did kind of tangential podcasts, right.

1240
00:53:45,680 --> 00:53:47,120
Speaker 2: Yeah, But that being said, we didn't do a ton

1241
00:53:47,160 --> 00:53:49,840
Speaker 2: of that, like like literally maybe just like a few,

1242
00:53:49,960 --> 00:53:52,480
Speaker 2: like a handful, but slowly over time we did build

1243
00:53:52,560 --> 00:53:54,880
Speaker 2: up an audience. And I guess I'm thinking of marketing

1244
00:53:55,040 --> 00:53:56,920
Speaker 2: like it makes me like early on we made koozies,

1245
00:53:57,239 --> 00:53:59,520
Speaker 2: but we didn't even send those out to listeners. I

1246
00:53:59,520 --> 00:54:01,160
Speaker 2: think we just gave them out to our friends because

1247
00:54:01,160 --> 00:54:03,520
Speaker 2: we thought it was cool, Like we were just nerdy

1248
00:54:03,880 --> 00:54:05,839
Speaker 2: and it was something that we enjoyed. But that's kind

1249
00:54:05,840 --> 00:54:08,200
Speaker 2: of what Joel's speaking to, like, make sure that it's

1250
00:54:08,239 --> 00:54:12,160
Speaker 2: fun for you. Don't worry too much about the marketing

1251
00:54:12,200 --> 00:54:14,319
Speaker 2: side of things. Obviously, with it's like so we were

1252
00:54:14,320 --> 00:54:16,600
Speaker 2: able to grow the show and then you know, we're

1253
00:54:16,600 --> 00:54:18,120
Speaker 2: with iHeart Now and so they do a lot of

1254
00:54:18,120 --> 00:54:20,040
Speaker 2: the marketing for us as well. But at the end

1255
00:54:20,080 --> 00:54:22,840
Speaker 2: of the day, don't I honestly wouldn't even worry too

1256
00:54:22,880 --> 00:54:25,120
Speaker 2: much about that because marketing I heard this quote where

1257
00:54:25,719 --> 00:54:29,200
Speaker 2: they said that basically marketing wins the day, but quality

1258
00:54:29,239 --> 00:54:32,000
Speaker 2: content wins the year, Like like, marketing is good for

1259
00:54:32,080 --> 00:54:35,280
Speaker 2: the short run, but unless you're creating a quality product.

1260
00:54:35,320 --> 00:54:38,560
Speaker 2: It doesn't really matter what the marketing plan is. It

1261
00:54:38,600 --> 00:54:40,879
Speaker 2: depends on what it is that you're creating. And so Doug,

1262
00:54:40,920 --> 00:54:43,560
Speaker 2: I think focusing on the quality of the show. Don't

1263
00:54:43,560 --> 00:54:44,000
Speaker 2: forget that.

1264
00:54:44,000 --> 00:54:46,719
Speaker 1: That is what you need to be focused on, you know,

1265
00:54:47,120 --> 00:54:49,479
Speaker 1: first and foremost, and you're as supposed to worry about

1266
00:54:49,480 --> 00:54:51,960
Speaker 1: the marketing and the scaling and growing side of things.

1267
00:54:52,000 --> 00:54:53,640
Speaker 1: And Dugs is the kind of show where people it's

1268
00:54:53,680 --> 00:54:55,440
Speaker 1: going to get word of mouth trash right, people who

1269
00:54:55,440 --> 00:54:57,480
Speaker 1: are like I love eighties movies and they know their

1270
00:54:57,520 --> 00:54:59,239
Speaker 1: best friend loves eighties movies and they're like, you got

1271
00:54:59,239 --> 00:55:01,440
Speaker 1: to listen to this, pot Cass, I'm listening to that.

1272
00:55:01,440 --> 00:55:03,279
Speaker 1: That's gonna be the best way for it to grow.

1273
00:55:03,840 --> 00:55:05,360
Speaker 1: I think you could get on you know, try to

1274
00:55:05,400 --> 00:55:07,120
Speaker 1: get on another podcasts. You can, you can work on

1275
00:55:07,239 --> 00:55:10,279
Speaker 1: other ways to grow and to find your audience, and

1276
00:55:10,280 --> 00:55:11,920
Speaker 1: you can put a lot of effort into that, but

1277
00:55:11,920 --> 00:55:13,759
Speaker 1: do you have the time and the like the the

1278
00:55:13,800 --> 00:55:16,480
Speaker 1: biggest thing. Focused the majority of your time on creating

1279
00:55:16,480 --> 00:55:18,960
Speaker 1: something great that you like creating, that's gonna be the

1280
00:55:18,960 --> 00:55:20,600
Speaker 1: most sustainable. It makes me think we have a we

1281
00:55:20,600 --> 00:55:24,200
Speaker 1: have a listener. Matt who writes about a newsletter about fitness,

1282
00:55:24,239 --> 00:55:26,239
Speaker 1: And that's this thing when it comes to fitness is like,

1283
00:55:26,560 --> 00:55:29,080
Speaker 1: do what's sustainable. You might like be able to go

1284
00:55:29,120 --> 00:55:31,600
Speaker 1: hard seven days a week for two weeks, but then

1285
00:55:31,600 --> 00:55:34,200
Speaker 1: you're gonna burn out, you're gonna stop, and so whatever

1286
00:55:34,280 --> 00:55:36,480
Speaker 1: workouts you choose, make sure it's something you want to replicate,

1287
00:55:36,480 --> 00:55:38,279
Speaker 1: you want to keep doing. And that's kind of I

1288
00:55:38,360 --> 00:55:39,680
Speaker 1: found that to be true in my own life. If

1289
00:55:39,680 --> 00:55:41,840
Speaker 1: I try to do something that I hate, I'm probably

1290
00:55:41,880 --> 00:55:42,960
Speaker 1: gonna like, you're gonna burn out.

1291
00:55:43,040 --> 00:55:45,760
Speaker 2: Yeah, exactly, all right, Doug, we wish you the best

1292
00:55:45,760 --> 00:55:46,960
Speaker 2: man and hoepfull.

1293
00:55:47,000 --> 00:55:50,160
Speaker 1: You get millions of downloads just from this Sweet out

1294
00:55:50,200 --> 00:55:50,840
Speaker 1: of Money podcast.

1295
00:55:50,920 --> 00:55:54,280
Speaker 2: Ess the sweet HTM plug the boys gave me HTM

1296
00:55:54,280 --> 00:55:56,800
Speaker 2: bump as well. We'll call it. That's right. The beer

1297
00:55:56,960 --> 00:56:00,600
Speaker 2: you and I enjoyed, Joel was chubby Unicorn again. This

1298
00:56:00,760 --> 00:56:03,520
Speaker 2: was a guava milkshake. I pa by common Space. What

1299
00:56:03,560 --> 00:56:04,160
Speaker 2: were your thoughts?

1300
00:56:04,480 --> 00:56:05,920
Speaker 1: You know, it's funny on the on the can it

1301
00:56:05,920 --> 00:56:08,560
Speaker 1: says it came with had guava puree in it, so

1302
00:56:08,600 --> 00:56:09,920
Speaker 1: I expected it to be a little thicker.

1303
00:56:10,040 --> 00:56:10,480
Speaker 2: It wasn't.

1304
00:56:10,920 --> 00:56:14,200
Speaker 1: Oh yeah, it was a little sweet, little vanilla smoothie

1305
00:56:14,760 --> 00:56:18,719
Speaker 1: vanilla smoothness to it, and so I would say with yes,

1306
00:56:18,760 --> 00:56:19,920
Speaker 1: some of that guava note.

1307
00:56:19,760 --> 00:56:21,520
Speaker 2: But not as much as I expected. Yes, So the

1308
00:56:21,560 --> 00:56:25,360
Speaker 2: guava it lent it that like guala passion fruit, like

1309
00:56:25,360 --> 00:56:28,800
Speaker 2: tropical flavors, like it makes me think of like not Skittles,

1310
00:56:29,080 --> 00:56:31,040
Speaker 2: but the tropical skittles yea, where you know, I don't know,

1311
00:56:31,040 --> 00:56:33,600
Speaker 2: it's it's hard to explain kind of that softness that

1312
00:56:33,640 --> 00:56:35,640
Speaker 2: you get with some of the tropical flavors. But we

1313
00:56:35,719 --> 00:56:38,399
Speaker 2: definitely had that going on in conjunction with the fact

1314
00:56:38,440 --> 00:56:40,600
Speaker 2: that I assumed there was lactose in this considering it

1315
00:56:40,640 --> 00:56:43,719
Speaker 2: was a milkshake milkshake I pa, but with it being

1316
00:56:43,760 --> 00:56:46,400
Speaker 2: an ipa that also it wasn't overly sweet because you

1317
00:56:46,400 --> 00:56:48,520
Speaker 2: had the bitterness from the hops that worked really well.

1318
00:56:48,840 --> 00:56:51,080
Speaker 2: And actually really dug this one, and I dug the

1319
00:56:51,120 --> 00:56:53,360
Speaker 2: label too. It's got the Unicorn on there, and we

1320
00:56:53,360 --> 00:56:56,560
Speaker 2: were joking before we hit record that, uh, is it

1321
00:56:56,560 --> 00:56:58,960
Speaker 2: weld works? They They've got like a lot of Unicorn

1322
00:56:59,200 --> 00:57:01,640
Speaker 2: imagery with their brand, and so it might be them.

1323
00:57:01,880 --> 00:57:04,520
Speaker 2: Somebody's got the Ninja Verse unicorn all. Yes, yeah, I

1324
00:57:04,520 --> 00:57:06,160
Speaker 2: think that's what works. I could be wrong. No, I

1325
00:57:06,200 --> 00:57:08,239
Speaker 2: don't think it is. I think it's it's half acre

1326
00:57:08,360 --> 00:57:10,160
Speaker 2: or something like that. Maybe. Oh, I don't know. I

1327
00:57:10,160 --> 00:57:12,439
Speaker 2: should We should know. We should. We're craft beer experts, Matt,

1328
00:57:12,840 --> 00:57:14,759
Speaker 2: we should know. But they've got multiple beers that are

1329
00:57:14,760 --> 00:57:18,560
Speaker 2: all unicorn, unicorn based whatever. So I hope common whoops

1330
00:57:18,560 --> 00:57:22,280
Speaker 2: Almos dropped Common Space doesn't get shut down because they

1331
00:57:22,360 --> 00:57:23,720
Speaker 2: got the Unicorn on there. Hope they don't get the

1332
00:57:23,720 --> 00:57:25,800
Speaker 2: cease and desist. There's plenty of There's plenty of room

1333
00:57:25,840 --> 00:57:27,320
Speaker 2: out there for Just like there's plenty of room for

1334
00:57:27,320 --> 00:57:29,400
Speaker 2: all the different podcasts out there, there's plenty of room

1335
00:57:29,440 --> 00:57:30,520
Speaker 2: for unicorn and craft beer.

1336
00:57:30,600 --> 00:57:34,640
Speaker 1: I love a good like fruited milkshake IPA like. One

1337
00:57:34,640 --> 00:57:37,720
Speaker 1: of my favorites of all time is the strawberry milkshake

1338
00:57:37,760 --> 00:57:41,720
Speaker 1: IPA from I Want to Wrecking Bar. Oh, yeah, that

1339
00:57:42,000 --> 00:57:44,440
Speaker 1: is a delicious one. But yeah, this one was solid

1340
00:57:44,760 --> 00:57:47,080
Speaker 1: and it's Yeah. If you like sours any like IPAs,

1341
00:57:47,400 --> 00:57:50,160
Speaker 1: put them together, this is what you get, right, that's right.

1342
00:57:50,480 --> 00:57:52,600
Speaker 2: We'll make sure to link to any of the different

1343
00:57:52,600 --> 00:57:56,000
Speaker 2: resources we mentioned during this episode up on the website

1344
00:57:56,000 --> 00:57:58,920
Speaker 2: in our show notes at howtomoney dot com, and if

1345
00:57:58,960 --> 00:58:01,000
Speaker 2: you are not yet a subscriber to the how to

1346
00:58:01,000 --> 00:58:03,720
Speaker 2: Money newsletter, make sure that you are howdomoney dot com

1347
00:58:03,760 --> 00:58:06,760
Speaker 2: forward slash newsletter. You can see some of the previous

1348
00:58:07,160 --> 00:58:09,160
Speaker 2: issues there to get a sampling, but go ahead and

1349
00:58:09,200 --> 00:58:12,280
Speaker 2: sign up to ensure that you don't miss the next

1350
00:58:12,640 --> 00:58:16,520
Speaker 2: newsletter that goes out on Tuesday, right tomorrow morning. But buddy,

1351
00:58:16,560 --> 00:58:18,480
Speaker 2: that's going to be it for this one until next time.

1352
00:58:18,600 --> 00:58:20,600
Speaker 2: Best Friends Out, Best Friends Out,