WEBVTT - Ask HTM - Finding Travel Deals, 401k Match Changes, and Our Take on Long Term Disability #955 0:00:00.080 --> 0:00:03.080 Welcome to Out of Money. I'm Joel, I'm Matt's and 0:00:03.120 --> 0:00:24.360 today we're answering your listener questions. 0:00:24.360 --> 0:00:28.320 Happy Monday everybody, as you are likely recovering from having 0:00:28.400 --> 0:00:32.000 lost one hour of sleep yesterday, well last night. Spring 0:00:32.040 --> 0:00:32.840 Ford is the worst. 0:00:32.880 --> 0:00:35.400 Man. Oh yeah, fall Back the absolute best. 0:00:35.400 --> 0:00:37.720 I remember realizing that for the first time as a 0:00:37.760 --> 0:00:40.879 freshman in college, someone mentioning that, and it was we're 0:00:40.880 --> 0:00:43.680 hanging out and it's like eleven thirty at night, thinking okay, 0:00:43.720 --> 0:00:46.159 maybe we should kind of wrap things up, but then 0:00:46.200 --> 0:00:50.080 someone said no, it's actually technically it's more like ten thirty, and. 0:00:50.040 --> 0:00:52.240 We're like, yeah, let's keep gaming, you'll. 0:00:52.200 --> 0:00:54.760 We kept the party going then because of that. Fallback 0:00:54.840 --> 0:00:55.280 is the best. 0:00:55.400 --> 0:00:58.880 Yeah, spring Ford is the worst. Hope you guys are recovering, Well. 0:00:58.720 --> 0:01:01.840 Yeah, this is our how to Money Monday episode. Though, 0:01:01.840 --> 0:01:04.240 we're going to hear from a listener who's asking for 0:01:04.440 --> 0:01:06.760 our favorite way to book a travel deal for all 0:01:06.760 --> 0:01:08.800 the folks out there who are looking to get some 0:01:08.880 --> 0:01:12.560 vacation under your belt this summer this spring. Another listener 0:01:12.680 --> 0:01:15.639 she's got some four to one K match changes there 0:01:15.680 --> 0:01:18.319 at her employer, who's it's getting a little more generous. 0:01:18.520 --> 0:01:20.600 It's thrown her for a loop. She's trying to figure 0:01:20.640 --> 0:01:23.200 out what's going on, and another listener is wondering what 0:01:23.240 --> 0:01:27.840 our take is on long term disability insurance. Maybe we'll 0:01:27.880 --> 0:01:30.759 even share whether or not we have long term disability ourselves. 0:01:30.760 --> 0:01:33.120 We'll get to that and more during our episode today. 0:01:33.120 --> 0:01:35.520 Buddy and ebe charging question too, Mattha will take so 0:01:35.760 --> 0:01:37.959 electric vehicles. If you want the electric vehicle to save 0:01:37.959 --> 0:01:39.640 you the most money, you got to figure out think 0:01:39.640 --> 0:01:41.120 about how you charge it and when you charge it. 0:01:41.160 --> 0:01:43.400 I don't know if there is anything else out there 0:01:43.400 --> 0:01:45.680 that Jiel thinks about more that he doesn't have than 0:01:45.720 --> 0:01:46.679 an electric vehicle. 0:01:47.560 --> 0:01:51.400 That's true that Yeah, you're right. One of these days though, 0:01:51.400 --> 0:01:52.960 I'll get back in the EB game. Have that Nissan 0:01:53.040 --> 0:01:55.480 lead for six years, loved it, that's right. I think 0:01:55.480 --> 0:01:58.960 evs are fantastic. Just you were an early adopter is 0:01:59.000 --> 0:02:01.560 what they're called, Joel. Yeah, and what do they say 0:02:01.560 --> 0:02:04.920 that you've earned it? Pioneers get slaughtered and I might 0:02:04.960 --> 0:02:07.960 have with my eighty mile range in Nissan Leaf, I 0:02:08.240 --> 0:02:09.400 see people selling those now. 0:02:09.480 --> 0:02:11.520 You can still drive it around for like twenty miles 0:02:11.560 --> 0:02:13.520 before the thing crapped out by the time you sold it. 0:02:13.520 --> 0:02:15.480 Well, I see people selling them now and it's amazing. 0:02:15.480 --> 0:02:17.560 They're like, uh, it really only gets about forty five 0:02:17.600 --> 0:02:19.600 miles which to charge these days. 0:02:19.400 --> 0:02:21.160 I'm thinking about it from a kids standpoint, like in 0:02:21.280 --> 0:02:22.679 that kind of what you want, it's like they can't 0:02:22.680 --> 0:02:26.520 get far from home before it's like a boomerang where 0:02:26.520 --> 0:02:28.120 they have to kind of like get back home, Like, yeah, 0:02:28.120 --> 0:02:29.799 I gotta charge charge the right. 0:02:29.800 --> 0:02:31.360 If you get that car for your kid, make sure 0:02:31.400 --> 0:02:32.960 you have triple A because you might need to tow 0:02:33.000 --> 0:02:34.600 it on occasion. It's true. 0:02:34.840 --> 0:02:37.000 Before we get going, I've actually got a frugal or 0:02:37.080 --> 0:02:39.160 cheap for you. And this is going to be part 0:02:40.080 --> 0:02:43.240 confessional as well. Oh yeah right, sure bring it. I 0:02:43.240 --> 0:02:46.360 think our listeners you, I think equas I know what 0:02:46.440 --> 0:02:48.920 I'm about to share, but listeners, hopefully should would get 0:02:49.120 --> 0:02:49.800 a kick out of this. 0:02:50.400 --> 0:02:52.280 I like playing priests to your confession. 0:02:52.320 --> 0:02:56.400 So obviously we've got a small business here that we run, 0:02:56.520 --> 0:02:58.680 and so obviously we have a business checking account, but 0:02:58.680 --> 0:03:01.840 we don't just have one business checking account. We actually 0:03:01.840 --> 0:03:05.359 have two separate banks who we bank with because. 0:03:05.160 --> 0:03:07.200 Of just the massive amounts of money that are gone 0:03:07.360 --> 0:03:10.840 exactly once you go above that two fifty. Just kidding, 0:03:10.960 --> 0:03:11.440 just kidding. 0:03:11.520 --> 0:03:15.040 Now, the reason that we have two separate bank accounts 0:03:15.360 --> 0:03:18.280 is because so we've always had a Capital one checking account. 0:03:18.720 --> 0:03:22.400 We got grandfathered in. It's a total, completely free account. 0:03:21.960 --> 0:03:24.519 One of the best business accounts. But then we found 0:03:24.520 --> 0:03:24.919 another one. 0:03:24.960 --> 0:03:27.120 It's great, there's another one. And we've talked about this company, 0:03:27.160 --> 0:03:30.000 this bank on the show before Leley. It's l I 0:03:30.240 --> 0:03:33.720 l I dot Co. And the reason we'd previously mentioned 0:03:33.720 --> 0:03:35.320 them it was, actually, I'm pretty sure it was in 0:03:35.360 --> 0:03:37.720 response to a listener's question, Oh yeah, and they're looking 0:03:37.800 --> 0:03:41.080 to find a place to stash their business funds for 0:03:41.120 --> 0:03:43.800 their small business, and we went and found this bank. 0:03:44.080 --> 0:03:46.480 And the reason we still have them is because they 0:03:46.520 --> 0:03:49.160 pay three percent in the savings account that you can 0:03:49.200 --> 0:03:51.160 link to the business checking account. 0:03:50.800 --> 0:03:52.680 And like, six nine months ago, is four percent? Wasn't 0:03:52.760 --> 0:03:52.960 it was? 0:03:53.080 --> 0:03:54.520 I think it was a little bit higher, but even still, 0:03:54.520 --> 0:03:56.600 three percent is fantastic, especially for. 0:03:56.520 --> 0:03:58.120 Business accounts which typically paid nothing. 0:03:58.160 --> 0:04:00.600 And so someone might ask, well, why are you keeping 0:04:00.600 --> 0:04:03.680 that Capital Wan account around, Well, it's because when we 0:04:03.720 --> 0:04:05.960 open that account with them, they send us a bunch. 0:04:05.760 --> 0:04:07.160 Of checks, a bunch of paper checks. 0:04:07.200 --> 0:04:10.480 We've got these big oversized almost you know, like the 0:04:10.480 --> 0:04:12.360 big oversized check that business. 0:04:12.040 --> 0:04:12.320 Is, right. 0:04:12.320 --> 0:04:14.520 They make you feel so legit. It makes you feel 0:04:14.520 --> 0:04:17.400 like a little kid, like you're writing fake checks. But 0:04:17.560 --> 0:04:21.000 I don't know, but we rarely write checks except for 0:04:21.160 --> 0:04:23.760 our four win k, which is with fidelity. The way 0:04:23.760 --> 0:04:26.520 it's set up, we have to send in a paper check. 0:04:26.960 --> 0:04:29.840 It's not something that we can do digitally. And I 0:04:29.880 --> 0:04:31.680 think folks can probably hear when we're going with this. 0:04:32.640 --> 0:04:35.440 In an effort to optimize, we keep most of our 0:04:35.560 --> 0:04:38.800 cash over in Leley, earning that interest, which, by the way, 0:04:38.800 --> 0:04:42.400 they charge you for the best rate, but of course 0:04:42.440 --> 0:04:44.760 you earn back more than what that rate is if 0:04:44.760 --> 0:04:46.680 you've got a decent amount of money in there. And 0:04:46.720 --> 0:04:49.359 so when I cut checks for the employer portion of 0:04:49.360 --> 0:04:52.120 our four wind k JUAL, I have to transfer money 0:04:52.360 --> 0:04:55.839 from Leey over to Capital one. And guess what I 0:04:55.839 --> 0:04:59.000 forgot to do in the most recent iteration reason. 0:04:59.200 --> 0:05:00.960 Yeah, got to send it over. 0:05:01.040 --> 0:05:04.960 There's just a lot financially going on with a business 0:05:04.960 --> 0:05:08.279 in my life. Completely slipped my mind, and so I 0:05:08.320 --> 0:05:13.520 saw the insufficient funds. Basically a bounce check is what happened. 0:05:13.839 --> 0:05:17.360 And so we got hit you and I four fifty each, 0:05:17.560 --> 0:05:21.640 I guess with a nine dollars insufficient funds charge. And 0:05:21.680 --> 0:05:25.080 so the question here is are we being frugal or 0:05:25.160 --> 0:05:28.200 cheap by having two separate accounts? And in this case 0:05:28.279 --> 0:05:30.719 it came back to bite us or you know, I 0:05:30.800 --> 0:05:32.880 dropped the ball basically as well. What I'm confessing here, 0:05:32.880 --> 0:05:34.839 but I want to know no word. You know it's 0:05:34.839 --> 0:05:37.400 worth it. I'm not mad at you if you're wondering, Yeah, 0:05:37.440 --> 0:05:40.200 thank you. Well, I think the question comes down to 0:05:40.720 --> 0:05:42.440 how onerous is it? And then how much are we 0:05:42.440 --> 0:05:46.599 actually making by having a higher interest rate from Ley 0:05:46.720 --> 0:05:49.320 and so part of it too, was just a testing 0:05:49.680 --> 0:05:52.400 for so we could offer good information to our listeners 0:05:52.680 --> 0:05:54.120 like you and O are guinea pigs of a sort 0:05:54.160 --> 0:05:56.400 from time to time for financial products to a certain extent. 0:05:56.440 --> 0:05:59.080 So for that reason alone, it was worth at least 0:05:59.080 --> 0:06:01.080 giving it a go. But point now that we've given 0:06:01.120 --> 0:06:03.720 both a go, they're both great accounts. Yeah, should we 0:06:03.720 --> 0:06:06.720 consolidate back to one? Maybe? Maybe just for simplicity. 0:06:07.040 --> 0:06:10.120 I like seeing that interest payment every single month. Yeah, 0:06:10.120 --> 0:06:13.440 and it more than pays for the It's a fifteen 0:06:13.440 --> 0:06:16.880 dollars a month charge and we make much more than that. Yeah, again, 0:06:16.960 --> 0:06:20.320 not because we have the vast quantities of money there 0:06:20.320 --> 0:06:22.920 in our business checking account, but enough in my opinion 0:06:22.960 --> 0:06:25.960 to handle making one digital transfer every three months, which 0:06:26.000 --> 0:06:27.760 is how often I typically do that. 0:06:27.920 --> 0:06:30.760 Yeah, so I think, yeah's let's hold onto both. I mean, 0:06:30.760 --> 0:06:32.240 I have frugal multiple. 0:06:31.880 --> 0:06:33.760 It sounds like you sounds like you're giving up the 0:06:33.800 --> 0:06:35.680 thumbs up frugal. I think so. 0:06:35.839 --> 0:06:38.000 And yeah, I think that's one of those things too. 0:06:38.120 --> 0:06:41.479 Where Lily, maybe for someone who has a small business 0:06:41.520 --> 0:06:44.400 that doesn't have much money sitting in there for long, 0:06:44.839 --> 0:06:46.680 the three percent interest might sound great, and you might 0:06:46.720 --> 0:06:48.800 be like, well, I haven't seen any other business accounts 0:06:48.800 --> 0:06:51.680 that offer a rate of interest like this. But if 0:06:51.960 --> 0:06:54.839 you don't have a decent chunk sitting there inside of 0:06:54.839 --> 0:06:56.719 your business account, which you and I have to do 0:06:56.839 --> 0:06:59.680 to pay other people, or when money just kind of 0:06:59.680 --> 0:07:03.160 sits for a minute before we pay ourselves, it's gonna yeah, 0:07:03.240 --> 0:07:06.040 have to cover rent, but futilities. Super small businesses, it's 0:07:06.080 --> 0:07:09.080 it's just we're very small business. But super small businesses 0:07:09.200 --> 0:07:11.280 might get you know, their eyes might pop open and 0:07:11.280 --> 0:07:14.040 be like, WHOA great, this is awesome, But in reality, 0:07:14.040 --> 0:07:15.720 it's probably not worth jumping through those hoops if you 0:07:15.720 --> 0:07:17.000 got to pay the fifteen bucks a month and you 0:07:17.000 --> 0:07:18.680 don't have much money earning interest. 0:07:19.080 --> 0:07:20.920 All right, The beer that you and I are going 0:07:20.960 --> 0:07:23.240 to enjoy during this episode, it's called a beer a missou. 0:07:24.040 --> 0:07:27.200 That's right. It's like tier massou, but beer. This is 0:07:27.240 --> 0:07:28.680 a gotta love a beer with a bad pun. 0:07:28.800 --> 0:07:31.280 An Imperial Milk porter. Buy six bridges and we will 0:07:31.280 --> 0:07:32.720 share our thoughts on this one at the end. 0:07:32.640 --> 0:07:34.360 Of the episode, no doubt. All right, if you have 0:07:34.400 --> 0:07:37.800 a money question, we'd love to take your question on 0:07:38.000 --> 0:07:41.800 the next ask htm episode. Just basically record a voice 0:07:41.800 --> 0:07:43.800 memo on your phone, email it over to us at 0:07:43.840 --> 0:07:46.480 how too Money pod at gmail dot com. And if 0:07:46.480 --> 0:07:48.320 you're like a little confused, just got to how to 0:07:48.320 --> 0:07:51.960 money dot com slash ask for the simple directions spelled out. 0:07:52.000 --> 0:07:54.080 Make it nice and easy for you. Matt, let's get 0:07:54.120 --> 0:07:58.080 to a question specifically about what to do when your 0:07:58.120 --> 0:08:01.200 employer changes the four h one K match that you're 0:08:01.240 --> 0:08:04.920 eligible for. By the way, this comes from listener Chelsea, Hi. 0:08:04.920 --> 0:08:08.600 Joel, and Matt. I had a question about an update 0:08:08.760 --> 0:08:12.280 that my company is making to the four to one 0:08:12.360 --> 0:08:17.119 K plan. Specifically how they structure the matching of employee contributions. 0:08:17.680 --> 0:08:20.720 So previously the way it worked was that the company 0:08:20.800 --> 0:08:26.840 matched contributions up to seven percent of eligible pay, and 0:08:27.000 --> 0:08:29.920 now they are dividing that into a three percent non 0:08:29.920 --> 0:08:34.959 elective contribution. So the company contributes three percent whether or 0:08:35.040 --> 0:08:37.079 not an employee pays into the four one K plan 0:08:37.200 --> 0:08:39.960 or not, and then they're also adding a four percent 0:08:40.040 --> 0:08:43.040 elective dollar for dollar match on top of that, so 0:08:44.160 --> 0:08:48.520 everybody gets three percent, and then if an employee contributes 0:08:48.800 --> 0:08:51.160 more of their own then they can get the full 0:08:51.200 --> 0:08:55.120 match up to seven percent. And previously I don't believe 0:08:55.160 --> 0:08:57.480 there was any non elective contribution. 0:08:57.679 --> 0:08:58.000 So. 0:08:59.520 --> 0:09:01.240 To me, it's it seems like the company is now 0:09:01.280 --> 0:09:06.160 paying more into the employee's four one K accounts, basically 0:09:06.240 --> 0:09:10.679 a three percent for everybody. It doesn't affect me because 0:09:10.679 --> 0:09:13.880 they've always contributed more than seven percent and gotten the 0:09:13.880 --> 0:09:16.920 full match. But I guess I'm just wondering why they 0:09:16.920 --> 0:09:17.920 would make this change. 0:09:18.800 --> 0:09:19.559 I'm sure it. 0:09:19.520 --> 0:09:23.199 Maybe has tax implications or something, but yeah, just curious 0:09:23.280 --> 0:09:25.160 in wondering if you could clear that up for me. 0:09:25.280 --> 0:09:25.640 Thank you. 0:09:26.160 --> 0:09:30.000 Oh, I think Chelsea's got a suspicious streaking her she's thinking, Hey, 0:09:30.080 --> 0:09:32.880 you guys are going to pull the wall over my eyes. No, 0:09:32.880 --> 0:09:34.240 that's I don't think that's actually the case. 0:09:34.280 --> 0:09:36.679 I think Chelsea, I get that instinct because it feels 0:09:36.720 --> 0:09:38.400 like in the financial world like they're trying to dupe. 0:09:38.440 --> 0:09:40.400 Yet there's they're gotcha's they're trying to get one over. 0:09:40.440 --> 0:09:41.319 Yet Yeah, all over the. 0:09:41.240 --> 0:09:43.800 Place, you and I we highlight scams or we highlight 0:09:43.840 --> 0:09:47.240 people who get taken advantage of, and so Chelsea's just alert. 0:09:47.320 --> 0:09:50.000 I don't want to become that person totally. No, I 0:09:50.040 --> 0:09:52.360 don't think that that's actually what's happening. It sounds like, Chelsea, 0:09:52.360 --> 0:09:54.880 and you didn't share what company you work for, but 0:09:54.880 --> 0:09:57.760 it sounds like it's a just a generous, solid company. 0:09:57.880 --> 0:10:00.440 It doesn't sound like that they're trying to the trick 0:10:00.480 --> 0:10:02.680 here or anything. I think they might be paying a 0:10:02.720 --> 0:10:04.800 bit more. Right, So you're saying, well, like, why would 0:10:04.800 --> 0:10:07.240 they do this? There are many reasons I think that 0:10:07.280 --> 0:10:09.880 we'll get to but bottom line, they're just making some 0:10:09.920 --> 0:10:12.840 of those matching funds easier to access, no matter what 0:10:12.840 --> 0:10:16.960 the financial status of the individual employee is. You, of course, 0:10:17.120 --> 0:10:20.080 you were brilliant to have always gotten the free money 0:10:20.080 --> 0:10:22.600 you've always gotten the full match, and that means that 0:10:22.760 --> 0:10:26.360 you've been contributing with the employer money included at least 0:10:26.440 --> 0:10:27.839 fourteen percent. 0:10:27.920 --> 0:10:29.640 Of your overall salary each year. 0:10:29.720 --> 0:10:31.360 Because I think she said she was even going above 0:10:31.360 --> 0:10:34.439 and beyond that, and so that's that's amazing, that's fantastic. 0:10:34.800 --> 0:10:36.920 That's ultimately where we want everyone to be. The fact 0:10:36.920 --> 0:10:40.920 that Chelsea was there even before she got an added 0:10:40.960 --> 0:10:44.480 incentive from her employer is great, it's laudable, and it's 0:10:44.480 --> 0:10:46.880 truly what most people should shoot for. Is I think 0:10:46.960 --> 0:10:50.520 a minimum saving trade of fifteen percent, and that you 0:10:50.600 --> 0:10:52.960 kind of alluded to this, Let's talk about why her 0:10:53.000 --> 0:10:55.920 employer is doing this. I think at least in part, 0:10:56.320 --> 0:11:00.080 they're probably doing it to ensure that every single employee 0:11:00.320 --> 0:11:03.880 is at least saving something for their future. This is, 0:11:04.600 --> 0:11:06.640 especially with Secure Act two point zero, kind of part 0:11:06.679 --> 0:11:11.600 of the push to get the average employee invested, many 0:11:11.640 --> 0:11:13.720 of whom don't invest at all if there's not an 0:11:13.720 --> 0:11:16.959 automatic opt in. And so, you know, financial literacy in 0:11:17.000 --> 0:11:20.360 our country is pretty bad. That's pretty self evident. And 0:11:20.440 --> 0:11:23.160 your employer, well, they might see that a decent chunk 0:11:23.200 --> 0:11:26.200 of folks are missing out on this perk altogether, like 0:11:26.920 --> 0:11:29.320 they're just not banking anything for their future. And maybe 0:11:29.320 --> 0:11:31.600 it sounds a little paternalistic, but I think of it 0:11:31.679 --> 0:11:34.120 as a good thing for employers to kind of watch 0:11:34.120 --> 0:11:36.160 out for that segment of the population and kind of 0:11:36.880 --> 0:11:39.280 force their hand in that way, although really it's the 0:11:39.280 --> 0:11:42.040 employer forcing their own hand to make those contributions. 0:11:42.360 --> 0:11:44.559 And sure, well, and you can always opt out. It's 0:11:44.600 --> 0:11:46.480 not like you don't have a choice, like you automatically 0:11:46.520 --> 0:11:48.120 get roll but enrolled, but if you don't want to 0:11:48.120 --> 0:11:49.800 continue to do that, it's just back out. 0:11:49.840 --> 0:11:50.439 You can back out. 0:11:50.480 --> 0:11:51.880 It's just a nudge in the right direction. 0:11:51.920 --> 0:11:53.680 There's as yeah, right, I think this is this is 0:11:53.720 --> 0:11:56.040 going to help write the ship at least for some 0:11:56.080 --> 0:11:58.160 of those people at least a little bit, right, getting 0:11:58.200 --> 0:12:01.640 them to invest something. And then you know, with these 0:12:01.640 --> 0:12:04.760 automatic contribution requirements becoming normal, this is just an on 0:12:04.960 --> 0:12:08.320 trend move for your employer, Chelsea, And it could also 0:12:08.360 --> 0:12:10.559 make budgeting more simple for your employer. This is another 0:12:10.600 --> 0:12:12.959 reason that they might be interested in doing this. Right, 0:12:13.000 --> 0:12:16.160 with elective contributions, it's hard to know what percentage of 0:12:16.160 --> 0:12:17.760 folks are going to invest and how much they're going 0:12:17.800 --> 0:12:21.040 to invest. And so the employer's like, wait, is Chelsea 0:12:21.120 --> 0:12:23.000 gonna max her four one K and we're going to 0:12:23.080 --> 0:12:24.880 be giving the full match to her? And what about 0:12:24.920 --> 0:12:26.720 other people? What are they going to do? Well, now 0:12:26.760 --> 0:12:28.880 they're going to have at least a better idea of 0:12:28.960 --> 0:12:31.840 how much the match overall each year is likely going 0:12:31.880 --> 0:12:34.120 to cost them. I think it just makes for easier 0:12:34.160 --> 0:12:36.920 financial planning for your employer, so maybe it feels a 0:12:36.920 --> 0:12:38.840 little more generous, and it also just gives them a 0:12:38.880 --> 0:12:42.280 little more future knowledge about what they're gonna have to 0:12:42.320 --> 0:12:42.760 fork over. 0:12:42.880 --> 0:12:46.280 Yeah, I think that's definitely true. It's both for the benefit, 0:12:46.320 --> 0:12:48.640 I think of the employer, but also the employee because 0:12:48.640 --> 0:12:51.640 from an employee standpoint, it's like, hey, we're all in 0:12:51.640 --> 0:12:54.280 this together, like we are all saving for our future. 0:12:54.520 --> 0:12:58.520 There's like a cohesive team sort of like can do attitude. Sure, 0:12:59.040 --> 0:13:02.439 and I think that that is well, especially for new hires. 0:13:02.679 --> 0:13:04.559 You know, Let's say you're look, you're considering a few 0:13:04.559 --> 0:13:07.439 different employers and you've got this one and they're saying, hey, 0:13:07.480 --> 0:13:09.439 no matter what, and this isn't going to affect your pay, 0:13:09.440 --> 0:13:10.640 but you're going to be enrolled in a four and 0:13:10.720 --> 0:13:12.600 K where you get a three percent match of your salary. 0:13:12.760 --> 0:13:15.959 It feels like free money. There's something that's really attractive 0:13:16.160 --> 0:13:18.280 about that that I think I would be drawn to, 0:13:18.640 --> 0:13:20.800 especially if I was early in my career. 0:13:20.840 --> 0:13:23.920 Well, I think the other thing that maybe goes underrated, 0:13:24.000 --> 0:13:27.600 undernoticed is those benevolent employers. They tend to get good 0:13:27.640 --> 0:13:30.080 street cred. I think about the employers in our town, 0:13:30.120 --> 0:13:33.480 matt where we live, and there are companies who just 0:13:33.559 --> 0:13:36.920 constantly make the headlines about being great places to work, 0:13:37.120 --> 0:13:39.400 and part of that is often what the benefits are. 0:13:39.520 --> 0:13:42.960 And some of these companies just have superior matches or 0:13:43.000 --> 0:13:45.280 better four one K plans and. 0:13:45.320 --> 0:13:48.760 Completely free healthcare where everything is covered, including dude. 0:13:48.800 --> 0:13:51.120 Man, the word gets around in your network and people 0:13:51.120 --> 0:13:52.439 are like, oh, ye, you should come over here to 0:13:52.440 --> 0:13:54.080 work at mail Trimp because hey, they got these like 0:13:54.120 --> 0:13:57.679 cool benefits that most people don't offer, and that's just 0:13:57.720 --> 0:13:59.920 great press for anybody out there who's looking for work. 0:14:00.000 --> 0:14:01.360 They're like, yeah, maybe well apply over there. 0:14:01.360 --> 0:14:02.680 It's funny that you mention that's totally what I was 0:14:02.679 --> 0:14:04.560 thinking of when I mentioned the healthcare one, because I 0:14:04.600 --> 0:14:07.800 get like I considered applying for a job like a 0:14:08.080 --> 0:14:09.520 long time begue, because I had a bunch of friends. 0:14:09.520 --> 0:14:11.520 So you're gonna say last week, I was gonna last week. Well, 0:14:11.640 --> 0:14:14.360 that's the thing that this was years ago. I don't 0:14:14.360 --> 0:14:16.720 know if they've changed their benefits since they were purchased 0:14:16.760 --> 0:14:20.600 by the big company that took them over. But even still, yes, 0:14:20.640 --> 0:14:23.040 like you said, I think that's something that absolutely that 0:14:23.120 --> 0:14:23.920 is worth considering. 0:14:24.200 --> 0:14:26.920 It's like that halo effect, right. The company gets and 0:14:27.080 --> 0:14:29.240 the more generous they are with their employees, the more 0:14:29.320 --> 0:14:32.040 likely they are to get lauded for that, and that's 0:14:32.040 --> 0:14:34.040 going to attract more great employees totally. 0:14:34.080 --> 0:14:36.160 And it's again so it's not just for the benefit 0:14:36.240 --> 0:14:38.760 of the employee, but for the employer as well. I 0:14:38.800 --> 0:14:40.920 think you're talking about budgeting, but I think it's just 0:14:40.960 --> 0:14:42.680 going to be more I think it could be easier 0:14:42.720 --> 0:14:45.200 to administer as well, when you know that everyone is 0:14:45.240 --> 0:14:47.600 on board and that out of minimum they're getting a 0:14:47.600 --> 0:14:49.200 three percent match. Like you said, it's good from a 0:14:49.240 --> 0:14:51.880 planning standpoint, but it's gonna be much easier to administer. 0:14:52.040 --> 0:14:53.800 I think the other big thing that this could do 0:14:53.960 --> 0:14:56.120 for your employer is that it allows them to achieve 0:14:56.200 --> 0:14:59.680 us known as safe harbor status by contributing to everyone's 0:14:59.680 --> 0:15:02.360 for when who works throughout the company. They can avoid 0:15:02.400 --> 0:15:05.880 certain non discrimination testing requirements, and this can be just 0:15:05.880 --> 0:15:07.640 a big pain in the butt that the something that 0:15:07.680 --> 0:15:11.520 the IRS requires. Many small businesses ought to go this route, 0:15:11.560 --> 0:15:14.760 and basically it's just easier to ensure that their plan 0:15:15.080 --> 0:15:19.000 is completely compliant with government regulations. And the cool thing 0:15:19.040 --> 0:15:22.400 for employees about a safe harbor forlwan K is that 0:15:22.440 --> 0:15:26.280 the three percent match also vests immediately. It happens right away, 0:15:26.400 --> 0:15:28.720 so there's no need to wait a year or two 0:15:28.800 --> 0:15:31.840 to ensure that those funds are actually years before they 0:15:31.920 --> 0:15:33.720 have the ability to claw them back. 0:15:33.840 --> 0:15:34.040 Yeah. 0:15:34.120 --> 0:15:36.120 Yeah, And you and I we can easily count on 0:15:36.400 --> 0:15:37.280 the dollars being yours. 0:15:37.280 --> 0:15:39.720 You and I were actually talking about that at lunch 0:15:39.800 --> 0:15:43.000 time before we recorded Matt and just how with the 0:15:43.120 --> 0:15:47.240 job hopping that happens so much in today's world, especially 0:15:47.280 --> 0:15:50.320 younger workers not staying at jobs nearly as long those 0:15:50.680 --> 0:15:52.360 You've got to look at the fine print of how 0:15:52.360 --> 0:15:55.120 long it takes for that match to vest, because if 0:15:55.120 --> 0:15:57.600 it's two years, if it's three or four years, and 0:15:57.640 --> 0:15:59.720 you're not there that long, all those match dollars could 0:15:59.720 --> 0:16:02.520 just like fly away vanish out the window, and so 0:16:02.560 --> 0:16:04.440 that it's nice to know that in one of these 0:16:04.640 --> 0:16:07.600 sorts of four to one K plans, the match is 0:16:07.680 --> 0:16:09.760 vested immediately, there's no risk of losing it. 0:16:09.840 --> 0:16:12.920 Yeah, i'd call those phantom four one ks. Yeah, that'd 0:16:12.960 --> 0:16:15.240 be the Friday flight headline. That's a it's a good term. 0:16:15.440 --> 0:16:17.840 I'm sure it's been used before. Just take that one away, Okay, Yeah, 0:16:17.840 --> 0:16:19.600 I actually probably have already used that. I probably stole 0:16:19.600 --> 0:16:22.600 it from somebody just unknowingly. There's I think maybe a 0:16:22.880 --> 0:16:25.000 potential downside for you, and that I just want to 0:16:25.080 --> 0:16:28.880 highlight that you could dial back your paycheck deduction two 0:16:28.880 --> 0:16:31.080 four percent right to where you're still getting the full 0:16:31.120 --> 0:16:33.880 seven percent from your employer because of this change, but 0:16:34.560 --> 0:16:37.960 your overall savings rate would go down, you know, And 0:16:37.960 --> 0:16:39.840 I would just say, we're ok with you taking the 0:16:39.840 --> 0:16:41.480 extra money and putting it into like, let's say a 0:16:41.600 --> 0:16:45.320 roth IRA or an HSA or a different retirement vehicle 0:16:45.480 --> 0:16:47.720 if your funds would be better suited. If you're like, hey, 0:16:47.720 --> 0:16:49.840 I'm gonna get the full match, which means I can 0:16:49.880 --> 0:16:52.480 reduce my overall contribution, but I hey, I'm gonna take 0:16:52.520 --> 0:16:55.080 those funds and put them in another vehicle that's going 0:16:55.120 --> 0:16:56.400 to be just as good for my future. 0:16:56.800 --> 0:17:00.720 That's great, But don't let this non elective match change 0:17:01.080 --> 0:17:04.159 cause you to save and invest less overall. That's the 0:17:04.240 --> 0:17:05.920 only way I think this could have a negative impact. 0:17:05.920 --> 0:17:07.159 If you like cool, I'm just going to down my 0:17:07.200 --> 0:17:10.240 contributions back. I'm investing instead of that fourteen percent, only 0:17:10.240 --> 0:17:13.560 eleven percent, and I'm just going to consume the rest 0:17:13.600 --> 0:17:17.760 and up upgrade my budget, increase my spending. That is truly, 0:17:17.840 --> 0:17:20.200 as I thought about it, the real only downside from 0:17:20.200 --> 0:17:21.480 your perspective that I could think of. 0:17:21.480 --> 0:17:24.480 And that's only I mean. So, yeah, you're taking a 0:17:24.480 --> 0:17:27.760 more conservative financial approach to the long term, making sure 0:17:27.760 --> 0:17:30.040 you have enough set aside. That's only a downside if 0:17:30.160 --> 0:17:33.080 let's say you have only been contributing towards your four 0:17:33.119 --> 0:17:35.359 one K or saving four retirement for like five years, 0:17:35.400 --> 0:17:38.720 or let's say you are early earlier on in your career. 0:17:38.720 --> 0:17:40.720 But let's say you've been doing this for twenty, maybe 0:17:40.760 --> 0:17:44.080 even thirty years. I see this as not necessarily a 0:17:44.080 --> 0:17:47.320 downside if you now have the ability to perhaps pull 0:17:47.400 --> 0:17:49.080 back a little bit on your savings rate, and that 0:17:49.119 --> 0:17:52.720 allows you to prioritize some other financial other not financial goals, 0:17:52.720 --> 0:17:55.160 but other Oh yeah, financial goals too, like you gotta yeah, 0:17:55.200 --> 0:17:58.080