1 00:00:00,160 --> 00:00:02,560 Speaker 1: Welcome to How the Money. I'm Joel and I and 2 00:00:02,640 --> 00:00:24,960 Speaker 1: Matt and today we are answering your listener questions. Yeah, 3 00:00:25,040 --> 00:00:28,080 Speaker 1: that's right, gel this is our first listener question episode 4 00:00:28,160 --> 00:00:31,560 Speaker 1: of the year of baby. That's right. I'm excited. And 5 00:00:31,560 --> 00:00:34,080 Speaker 1: on every single one of these episodes we answer five 6 00:00:34,120 --> 00:00:36,080 Speaker 1: listener questions. On this one a few that we're gonna 7 00:00:36,080 --> 00:00:38,680 Speaker 1: get to. Today. We're gonna talk about putting your mortgage 8 00:00:38,920 --> 00:00:40,760 Speaker 1: on a credit card. We're also gonna talk about where 9 00:00:40,800 --> 00:00:43,360 Speaker 1: to put money that you want to save and or 10 00:00:43,640 --> 00:00:46,239 Speaker 1: invest for a baby. Uh. And then we're gonna we're 11 00:00:46,240 --> 00:00:49,080 Speaker 1: gonna talk all about buying and selling a vehicle with 12 00:00:49,600 --> 00:00:52,000 Speaker 1: car Vona and whether or not it makes sense. We're 13 00:00:52,000 --> 00:00:55,000 Speaker 1: gonna get to those questions plus two others uh here 14 00:00:55,000 --> 00:00:57,160 Speaker 1: on this episode, buddy nice. Yeah, and before we get 15 00:00:57,160 --> 00:00:58,960 Speaker 1: to that, Matt, I wanted to mention it's my wife's birthday. 16 00:00:59,000 --> 00:01:02,480 Speaker 1: Happy birthday to my my lovely wife family. Sadly, she 17 00:01:02,560 --> 00:01:04,840 Speaker 1: won't hear me say this because she doesn't listen to 18 00:01:04,880 --> 00:01:09,600 Speaker 1: the podcast. Uh. Neither of our wives listen to our podcast, 19 00:01:09,959 --> 00:01:12,520 Speaker 1: which is understandable, right, I mean, they live with us, 20 00:01:12,600 --> 00:01:14,800 Speaker 1: They hear us talk all the time. Said, they probably 21 00:01:14,840 --> 00:01:17,160 Speaker 1: don't want to spend any of their other waking hours 22 00:01:17,160 --> 00:01:20,160 Speaker 1: where they don't have to hear of voices exactly hear us. Yeah, 23 00:01:20,280 --> 00:01:23,080 Speaker 1: yeammer on about about money and the other things we 24 00:01:23,120 --> 00:01:24,840 Speaker 1: like to talk about, right for like a decade plus 25 00:01:24,840 --> 00:01:27,479 Speaker 1: now they've heard all of our thoughts about money and 26 00:01:27,560 --> 00:01:29,800 Speaker 1: so um, they don't need to listen to this podcast. 27 00:01:29,800 --> 00:01:32,160 Speaker 1: Before we had the podcast as an outlet, you know, 28 00:01:32,200 --> 00:01:34,319 Speaker 1: it was either to each other or to them for 29 00:01:34,360 --> 00:01:36,400 Speaker 1: the most part. So yeah, dude, I don't even think 30 00:01:36,440 --> 00:01:38,920 Speaker 1: he listens to to any podcast. Is Emily a big 31 00:01:39,120 --> 00:01:41,960 Speaker 1: podcast listener? No, not really. She'll listen occasionally, but like 32 00:01:42,080 --> 00:01:44,840 Speaker 1: I listened to, you know, quite a few podcasts. Um, 33 00:01:45,120 --> 00:01:47,640 Speaker 1: maybe too many. I'm trying to squeeze them all in 34 00:01:47,640 --> 00:01:50,080 Speaker 1: a week. But when of your resolutions this year, pair 35 00:01:50,120 --> 00:01:51,960 Speaker 1: back all the different podcasts that you listen to. No, 36 00:01:52,000 --> 00:01:53,280 Speaker 1: I feel like I'm in a good spot. I just 37 00:01:53,280 --> 00:01:55,760 Speaker 1: had to skip the occasional episode. Just I can't listen 38 00:01:55,800 --> 00:01:58,240 Speaker 1: to every episode of every podcast I love. I totally 39 00:01:58,280 --> 00:01:59,800 Speaker 1: get it. And that's what's so hard for me because 40 00:01:59,840 --> 00:02:02,920 Speaker 1: I'm such a like, technical by the book kind of person, 41 00:02:03,000 --> 00:02:05,120 Speaker 1: and so for me, if I'm subscribed and they feed 42 00:02:05,120 --> 00:02:08,000 Speaker 1: me that episode. It's hard for me to to click 43 00:02:08,040 --> 00:02:10,240 Speaker 1: the check mark and to just dismiss it. It feels 44 00:02:10,280 --> 00:02:12,600 Speaker 1: like a failure to not listen to it, really does. 45 00:02:12,680 --> 00:02:15,440 Speaker 1: I feel like I'm not doing you know, myself service. 46 00:02:15,440 --> 00:02:17,480 Speaker 1: I feel like I'm not doing them service by by 47 00:02:17,480 --> 00:02:20,000 Speaker 1: skipping that episode. But I'm with you, man, there are 48 00:02:20,040 --> 00:02:22,080 Speaker 1: more shows now that I want to listen to then 49 00:02:22,120 --> 00:02:25,160 Speaker 1: I have time for. And so yeah, for me, I've 50 00:02:25,160 --> 00:02:27,240 Speaker 1: been listening on Spotify lately. By the way, is that 51 00:02:27,440 --> 00:02:29,720 Speaker 1: is that? Are you still sticking with Spotify on Google 52 00:02:29,720 --> 00:02:31,480 Speaker 1: Google Past? Has that been working? Which has been great? 53 00:02:31,480 --> 00:02:33,160 Speaker 1: Which's been great? So yeah, And there's so many great 54 00:02:33,160 --> 00:02:35,480 Speaker 1: places to listen to podcast now Amazon You can actually 55 00:02:35,480 --> 00:02:38,440 Speaker 1: listen on Amazon Music now too, uh So, so that's cool, 56 00:02:38,560 --> 00:02:41,040 Speaker 1: and they're just yeah, there's a plethora of great podcasts 57 00:02:41,080 --> 00:02:43,520 Speaker 1: out there, and so yeah, thanks for choosing to listen 58 00:02:43,560 --> 00:02:46,960 Speaker 1: to this podcast. And we hope that in we're able 59 00:02:47,000 --> 00:02:50,880 Speaker 1: to deliver a ton of actionable financial advice for you 60 00:02:51,040 --> 00:02:53,560 Speaker 1: that makes it worth listening to three times a week. Yeah, 61 00:02:53,560 --> 00:02:55,280 Speaker 1: and we're hoping too that we can answer any specific 62 00:02:55,360 --> 00:02:57,880 Speaker 1: questions that you might have if you do have a question, 63 00:02:57,919 --> 00:02:59,240 Speaker 1: We would love for you to send it our way. 64 00:02:59,280 --> 00:03:01,720 Speaker 1: Just record a void some memo. You can see full 65 00:03:01,720 --> 00:03:03,880 Speaker 1: instructions on our website at how to money dot com. 66 00:03:04,000 --> 00:03:07,720 Speaker 1: Forward slash ask that will explain how you can easily 67 00:03:07,760 --> 00:03:10,000 Speaker 1: send us a voice memo but literally just recorded on 68 00:03:10,040 --> 00:03:11,760 Speaker 1: your phone. Email it to us at how to Money 69 00:03:11,760 --> 00:03:14,519 Speaker 1: pod at Gmail, and hopefully very soon we'll be able 70 00:03:14,560 --> 00:03:17,480 Speaker 1: to answer that question on the show. H B Jiel. 71 00:03:17,520 --> 00:03:19,120 Speaker 1: Before we get to the questions, you want to introduce 72 00:03:19,120 --> 00:03:20,920 Speaker 1: our beer for this episode, Let's do it. Yeah, we 73 00:03:20,919 --> 00:03:23,800 Speaker 1: share a craft beer um on every episode and this 74 00:03:23,840 --> 00:03:26,120 Speaker 1: one is called Passion of the Fruit. So why Paradox 75 00:03:26,280 --> 00:03:29,320 Speaker 1: Beer Company. They're out of Colorado. This is a Passion 76 00:03:29,320 --> 00:03:31,680 Speaker 1: Fruit sour beer. So looking forward to sharing this one 77 00:03:31,680 --> 00:03:34,080 Speaker 1: with you, my friend, while we take some listener questions. 78 00:03:34,120 --> 00:03:35,800 Speaker 1: So let's get that first one. This one is about 79 00:03:35,920 --> 00:03:38,640 Speaker 1: paying your mortgage with a credit card. Hey, Matt and 80 00:03:38,720 --> 00:03:41,920 Speaker 1: Joel Jen here calling in from Ohio. So my husband 81 00:03:41,920 --> 00:03:43,680 Speaker 1: and I just bought our first home and we're kind 82 00:03:43,720 --> 00:03:45,840 Speaker 1: of hoping to do something like Joeldan and maybe turn 83 00:03:45,880 --> 00:03:48,600 Speaker 1: it into a rental later. But my husband works for 84 00:03:48,680 --> 00:03:51,720 Speaker 1: nonprofit so we have really low living expenses about two 85 00:03:51,720 --> 00:03:54,760 Speaker 1: thousand bucks a month, so our housing budget, which is 86 00:03:54,760 --> 00:03:58,400 Speaker 1: significantly lower than our previous renting utilities ya, is a 87 00:03:58,400 --> 00:04:01,080 Speaker 1: pretty significant chunk of our for all monthly budget, and 88 00:04:01,120 --> 00:04:03,360 Speaker 1: most of our other bills can't be traditionally paid with 89 00:04:03,400 --> 00:04:06,520 Speaker 1: credit cards either. I'd really love to get some kind 90 00:04:06,520 --> 00:04:10,360 Speaker 1: of return on these payments, but obviously mortgage companies understandably 91 00:04:10,440 --> 00:04:13,120 Speaker 1: don't like debt for debt payments, even though we personally 92 00:04:13,160 --> 00:04:15,760 Speaker 1: use our credit cards like a debit card. Are there 93 00:04:15,800 --> 00:04:17,960 Speaker 1: any options that you guys know of to get credit 94 00:04:18,000 --> 00:04:20,080 Speaker 1: card points or some other kind of rewards for pain 95 00:04:20,160 --> 00:04:23,279 Speaker 1: or mortgage every month, so I would love to hear them. 96 00:04:23,320 --> 00:04:26,120 Speaker 1: Thanks and keep up the good work. Jen, Thanks so 97 00:04:26,200 --> 00:04:28,760 Speaker 1: much for that question, and congrats to of keeping you 98 00:04:28,760 --> 00:04:31,240 Speaker 1: and your husband. You're saying that you your expenses for 99 00:04:31,240 --> 00:04:33,200 Speaker 1: the month are two thousand dollars, and so the ability 100 00:04:33,200 --> 00:04:35,960 Speaker 1: to live off of fo dollars in a year's pretty amazing. 101 00:04:35,960 --> 00:04:38,640 Speaker 1: It's impressive you're living that frugal life. But we are 102 00:04:38,640 --> 00:04:41,640 Speaker 1: all about credit card rewards and putting recurring bills on 103 00:04:41,680 --> 00:04:44,960 Speaker 1: your credit card to score those extra rewards if you 104 00:04:45,000 --> 00:04:46,839 Speaker 1: pay your bill in full and on time every month. 105 00:04:46,920 --> 00:04:49,479 Speaker 1: Of course, that's how Kate and I, that's how we 106 00:04:49,560 --> 00:04:52,000 Speaker 1: use our credit cards. You know, regardless of when the 107 00:04:52,040 --> 00:04:54,880 Speaker 1: statements are and when the minimum payments are due, I 108 00:04:55,000 --> 00:04:57,480 Speaker 1: always schedule those payments at the end of the month. Uh, 109 00:04:57,600 --> 00:04:59,640 Speaker 1: you know, right after we've made those charges. That way 110 00:04:59,640 --> 00:05:01,840 Speaker 1: we can take advantage of those credit card benefits, but 111 00:05:01,880 --> 00:05:04,360 Speaker 1: we still feel the effects of having spent that money 112 00:05:04,720 --> 00:05:07,240 Speaker 1: as soon as possible, not unlike using a debit card, 113 00:05:07,240 --> 00:05:09,200 Speaker 1: just like you do. Yeah, so let's talk about, Matt, 114 00:05:09,279 --> 00:05:13,240 Speaker 1: how you could potentially use a credit card in order 115 00:05:13,279 --> 00:05:15,799 Speaker 1: to pay for your mortgage. Like Jen said, it's pretty 116 00:05:15,839 --> 00:05:17,880 Speaker 1: hard to come by. We'll do our best to give 117 00:05:18,240 --> 00:05:20,880 Speaker 1: just a couple of options that you could potentially consider. 118 00:05:21,279 --> 00:05:24,120 Speaker 1: And interestingly enough, you're more likely to find an apartment 119 00:05:24,120 --> 00:05:26,640 Speaker 1: complex or a landlord who's willing to accept credit cards 120 00:05:26,720 --> 00:05:28,719 Speaker 1: for rent payment then you are to find a bank 121 00:05:28,960 --> 00:05:31,880 Speaker 1: willing to accept a credit card for a mortgage payment. 122 00:05:32,200 --> 00:05:35,240 Speaker 1: For instance, if your landlord uses a service like Cozy, 123 00:05:35,400 --> 00:05:37,760 Speaker 1: you can choose to pay via credit card, although at 124 00:05:37,760 --> 00:05:39,840 Speaker 1: the same time you're gonna pay a credit card feet 125 00:05:39,839 --> 00:05:42,520 Speaker 1: in order to do that, And even the mortgage services 126 00:05:42,560 --> 00:05:44,800 Speaker 1: that do accept them, are going to pass on the 127 00:05:44,839 --> 00:05:48,240 Speaker 1: fee that they pay to oftentimes plus extra at the 128 00:05:48,279 --> 00:05:50,520 Speaker 1: time of the payment. So, Matt, I do have one 129 00:05:50,560 --> 00:05:53,160 Speaker 1: mortgage company that will accept credit cards, but I can't 130 00:05:53,160 --> 00:05:54,520 Speaker 1: I forget if it's two and a half percent or 131 00:05:54,560 --> 00:05:56,240 Speaker 1: three percent. I need to go back and look. So 132 00:05:56,279 --> 00:05:59,119 Speaker 1: it just never makes sense. It just negates the bonus 133 00:05:59,400 --> 00:06:02,080 Speaker 1: receive from the card exactly right. So, and then another 134 00:06:02,400 --> 00:06:04,720 Speaker 1: potential option is you could use the checks your credit 135 00:06:04,720 --> 00:06:07,720 Speaker 1: card company sends you a K the convenience checks that 136 00:06:07,800 --> 00:06:10,320 Speaker 1: they certainly will want you to start using. Convenience checks 137 00:06:10,320 --> 00:06:12,560 Speaker 1: is what they call them, but really what they are 138 00:06:12,680 --> 00:06:15,560 Speaker 1: like cash advanced checks, Yes, and they're just not good 139 00:06:15,600 --> 00:06:18,680 Speaker 1: for you because of the fees that are charged for 140 00:06:18,800 --> 00:06:20,279 Speaker 1: using those checks that they sent out to you, and 141 00:06:20,440 --> 00:06:23,560 Speaker 1: typically somewhere between three and five pent. So again with 142 00:06:23,600 --> 00:06:26,440 Speaker 1: those as well, it just doesn't make sense to use 143 00:06:26,480 --> 00:06:29,600 Speaker 1: them in order to pay your mortgage. And that's because 144 00:06:29,680 --> 00:06:32,760 Speaker 1: the rewards that you're getting from doing so are typically 145 00:06:32,800 --> 00:06:35,599 Speaker 1: capped at two percent. It just doesn't make sense to 146 00:06:35,600 --> 00:06:38,400 Speaker 1: pay four percent to get two percent. Yeah, sure, unless 147 00:06:38,400 --> 00:06:41,680 Speaker 1: a X starts categorizing mortgage payments as grocery, right, exactly, 148 00:06:41,720 --> 00:06:43,680 Speaker 1: then you can give that six percent a little two 149 00:06:43,680 --> 00:06:46,920 Speaker 1: percent spread. But jen a roundabout way that we've heard 150 00:06:46,920 --> 00:06:49,520 Speaker 1: of before is to use your credit card to to 151 00:06:49,600 --> 00:06:52,919 Speaker 1: purchase a money order, deposit that money order with your bank, 152 00:06:53,279 --> 00:06:55,760 Speaker 1: and then pay your mortgage with the account that you 153 00:06:55,800 --> 00:06:59,640 Speaker 1: deposited the money order into. However, the problem there is 154 00:06:59,680 --> 00:07:01,200 Speaker 1: that there's a only a couple of money order companies 155 00:07:01,200 --> 00:07:04,720 Speaker 1: who accept credit cards, just Western Union in seven eleven. 156 00:07:05,040 --> 00:07:08,200 Speaker 1: But even then, another hurdle are the big fees charged 157 00:07:08,200 --> 00:07:10,160 Speaker 1: by the credit card company. By the way, I like 158 00:07:10,200 --> 00:07:11,920 Speaker 1: to get my money orders when I get my slurpees 159 00:07:11,920 --> 00:07:14,480 Speaker 1: at seven eleven, that's perfect, combody. I don't even think 160 00:07:14,480 --> 00:07:16,440 Speaker 1: there are seven elevens around us? Are there? Like I 161 00:07:16,480 --> 00:07:18,560 Speaker 1: don't see them anywhere near and like maybe in the burbs, 162 00:07:18,560 --> 00:07:19,880 Speaker 1: I don't know. We don't have them like near where 163 00:07:19,880 --> 00:07:21,840 Speaker 1: we live them. Yeah. Yeah. But the problem here though 164 00:07:21,960 --> 00:07:24,080 Speaker 1: is a money order ajen. When we kind of touched 165 00:07:24,120 --> 00:07:27,000 Speaker 1: on this, it's a type of guaranteed payment, right, and 166 00:07:27,000 --> 00:07:28,920 Speaker 1: so most credit card companies are going to treat that 167 00:07:29,000 --> 00:07:31,840 Speaker 1: expense as a cash advance, and so because of that, 168 00:07:31,880 --> 00:07:34,000 Speaker 1: you'll be charged for it again in the in the 169 00:07:34,000 --> 00:07:36,360 Speaker 1: three to five percent range. So again, this is another 170 00:07:36,400 --> 00:07:39,160 Speaker 1: instance where the benefits that you would receive would be 171 00:07:39,200 --> 00:07:41,240 Speaker 1: outweighed by the fees that they're going to charge. Plus 172 00:07:41,280 --> 00:07:42,680 Speaker 1: in this case, there's a lot of hassle as well. 173 00:07:42,720 --> 00:07:44,520 Speaker 1: All right, we're gonna keep coming up with options. So 174 00:07:44,600 --> 00:07:48,200 Speaker 1: here's one more. Plastic is another um website that you 175 00:07:48,240 --> 00:07:51,080 Speaker 1: could turn to. It's the one option that we know 176 00:07:51,120 --> 00:07:52,560 Speaker 1: if that allows you to pay a bill like a 177 00:07:52,560 --> 00:07:55,680 Speaker 1: mortgage with your credit card, and it's you know, worth 178 00:07:55,680 --> 00:07:57,800 Speaker 1: looking into. Matt You've used this before when they've had 179 00:07:57,880 --> 00:08:01,840 Speaker 1: promotional offerings, but they don't have a promotional offering. The 180 00:08:02,160 --> 00:08:04,560 Speaker 1: rate that they charge is two point eight five per 181 00:08:04,600 --> 00:08:07,200 Speaker 1: cent um. And so again, the only time that it 182 00:08:07,200 --> 00:08:09,560 Speaker 1: would make sense to use Plastic to pay a mortgage 183 00:08:09,880 --> 00:08:13,000 Speaker 1: is potentially in the case that you need to hit 184 00:08:13,040 --> 00:08:15,760 Speaker 1: a credit card sign up bonus in order to score 185 00:08:15,800 --> 00:08:18,360 Speaker 1: what like six seven, eight hundred dollars from the initial 186 00:08:18,440 --> 00:08:19,880 Speaker 1: spend that you gotta meet with the credit card, and 187 00:08:19,920 --> 00:08:21,960 Speaker 1: if you're having trouble meaning it through other things that 188 00:08:22,000 --> 00:08:24,440 Speaker 1: won't charge you a fee, then it might make sense 189 00:08:24,440 --> 00:08:26,320 Speaker 1: to pay your mortgage with that credit card through a 190 00:08:26,360 --> 00:08:29,240 Speaker 1: website like Plastic at least just at once in order 191 00:08:29,240 --> 00:08:31,720 Speaker 1: to make sure that you get that sweet bonus. And 192 00:08:31,760 --> 00:08:33,800 Speaker 1: basically the way Plastic corks is that when you pay 193 00:08:33,920 --> 00:08:35,959 Speaker 1: via their website, they then cut a check to the 194 00:08:36,000 --> 00:08:38,640 Speaker 1: mortgage company, null paper check. Yeah, so so that's how 195 00:08:38,679 --> 00:08:41,080 Speaker 1: that's how it works. It's certainly an interesting service. And 196 00:08:41,120 --> 00:08:44,160 Speaker 1: when they do have promo sign ups, didn't you at 197 00:08:44,160 --> 00:08:47,080 Speaker 1: some point get like five grand and free plastic money? 198 00:08:47,120 --> 00:08:48,640 Speaker 1: I think so, And so this was a couple of 199 00:08:48,679 --> 00:08:50,360 Speaker 1: years ago, I think it was when they first launched. 200 00:08:50,800 --> 00:08:53,560 Speaker 1: But basically they were giving away fee free dollars and 201 00:08:53,600 --> 00:08:56,400 Speaker 1: so you had to spend limit and like, hey, up 202 00:08:56,400 --> 00:08:58,480 Speaker 1: to five thousand dollars, we will cut those checks for 203 00:08:58,520 --> 00:09:00,880 Speaker 1: you free of charge. And so I was able to, 204 00:09:01,080 --> 00:09:02,840 Speaker 1: like you said, literally, I was able to hit a 205 00:09:02,880 --> 00:09:05,360 Speaker 1: spend limit for a new credit card sign up bonus 206 00:09:05,800 --> 00:09:08,760 Speaker 1: that I may not have otherwise hit. But to be honest, 207 00:09:08,920 --> 00:09:11,240 Speaker 1: I have not seen any other sort of promotions like 208 00:09:11,280 --> 00:09:13,720 Speaker 1: that since then. You are able to get fee free 209 00:09:13,720 --> 00:09:16,360 Speaker 1: dollars by referring friends, and so every time you refer 210 00:09:16,440 --> 00:09:18,920 Speaker 1: somebody and they use their service, you will then receive 211 00:09:19,280 --> 00:09:22,000 Speaker 1: some fee free dollars. But again this isn't something that 212 00:09:22,080 --> 00:09:24,640 Speaker 1: is really sustainable. Uh. It could be something that maybe 213 00:09:24,640 --> 00:09:26,200 Speaker 1: you do once, like we're just saying here to hit 214 00:09:26,280 --> 00:09:28,280 Speaker 1: a spend limit, but otherwise it's not something that you 215 00:09:28,320 --> 00:09:31,280 Speaker 1: can kind of regularly go to and so jen for you, 216 00:09:31,520 --> 00:09:33,800 Speaker 1: it's probably best just to stick with those automatic A 217 00:09:33,840 --> 00:09:35,920 Speaker 1: C H payments uh, and then just keep an eye 218 00:09:35,920 --> 00:09:38,600 Speaker 1: out for, you know, maybe any codes that Plastic does 219 00:09:38,640 --> 00:09:40,920 Speaker 1: put out there, uh to kind of maybe lessen that 220 00:09:40,960 --> 00:09:44,160 Speaker 1: fee for at least a month or two of payments. Ultimately, 221 00:09:44,200 --> 00:09:46,520 Speaker 1: trying to get your mortgage on a credit card it's 222 00:09:46,559 --> 00:09:48,320 Speaker 1: just a lot of hassle and even you know, if 223 00:09:48,360 --> 00:09:49,840 Speaker 1: you were able to get it to work out, you 224 00:09:49,920 --> 00:09:52,840 Speaker 1: likely won't be earning enough in cash back to to 225 00:09:52,880 --> 00:09:54,840 Speaker 1: actually make it worthwhile. Yeah, it might be more of 226 00:09:54,880 --> 00:09:59,439 Speaker 1: a chaotic pursuit or is that key's pixidic quick sidic Okay, 227 00:09:59,440 --> 00:10:01,679 Speaker 1: all right, So yeah, it might be one of those 228 00:10:01,679 --> 00:10:04,280 Speaker 1: things where you're you're tilting it wind mills, you're pursuing 229 00:10:04,360 --> 00:10:07,040 Speaker 1: an opportunity to try to earn a greater cash back 230 00:10:07,440 --> 00:10:10,000 Speaker 1: when you're paying your mortgage. But ultimately there's just not 231 00:10:10,120 --> 00:10:12,640 Speaker 1: a clear cut route that exists in order to help 232 00:10:12,679 --> 00:10:15,680 Speaker 1: you do that and score those cash back rewards every 233 00:10:15,720 --> 00:10:20,120 Speaker 1: month without paying fees. That outweigh that that potential opportunity. Yeah, 234 00:10:20,160 --> 00:10:21,959 Speaker 1: but if there ever is a new option out there, 235 00:10:21,960 --> 00:10:23,719 Speaker 1: you can guarantee that we will be talking about it, 236 00:10:23,760 --> 00:10:26,079 Speaker 1: because Joanna, you know, we've got some rental properties, we 237 00:10:26,559 --> 00:10:29,240 Speaker 1: have mortgages that we pay every month, and so if 238 00:10:29,240 --> 00:10:30,680 Speaker 1: there is an easy way to do it where we 239 00:10:30,679 --> 00:10:33,000 Speaker 1: would receive other benefits, we're gonna be all over that 240 00:10:33,360 --> 00:10:35,800 Speaker 1: and we'll be sharing with the audience. Yes, all right, Well, 241 00:10:35,840 --> 00:10:38,199 Speaker 1: we've got more questions to get to, including one about 242 00:10:38,440 --> 00:10:40,079 Speaker 1: where to save money for a brand new baby. We'll 243 00:10:40,080 --> 00:10:51,160 Speaker 1: get to that and more right after this break. All right, 244 00:10:51,200 --> 00:10:52,640 Speaker 1: we're back from the break, and I keep thinking about 245 00:10:52,640 --> 00:10:54,280 Speaker 1: the fact that you just said brand new baby, bran 246 00:10:54,320 --> 00:10:56,480 Speaker 1: new baby? Is that? Is that how you describe a newborn, 247 00:10:56,600 --> 00:10:59,880 Speaker 1: just like, oh that baby is brand new right off 248 00:10:59,880 --> 00:11:07,800 Speaker 1: the fresh from the manufacturer, like new with tags. I mean, 249 00:11:08,000 --> 00:11:09,560 Speaker 1: by the way we're talking, you would think that we 250 00:11:09,600 --> 00:11:12,240 Speaker 1: don't have kids, but what we do far too many 251 00:11:12,240 --> 00:11:14,440 Speaker 1: in fact, Yeah, seven totals. Yeah, we'll get to that 252 00:11:14,480 --> 00:11:15,959 Speaker 1: question here in a minute, but first let's take a 253 00:11:16,040 --> 00:11:19,520 Speaker 1: question from a listener about long term disability insurance. I'm 254 00:11:19,520 --> 00:11:21,959 Speaker 1: at and Joel. This is John from Indiana. I love 255 00:11:22,000 --> 00:11:24,240 Speaker 1: the show and my question is about the benefit period 256 00:11:24,360 --> 00:11:27,959 Speaker 1: for long term disability insurance. I'm shopping for a long 257 00:11:28,040 --> 00:11:31,360 Speaker 1: term disability policy for me and my wife on Policy Genius, 258 00:11:31,360 --> 00:11:34,160 Speaker 1: thanks to your recommendation of the site. My wife and 259 00:11:34,160 --> 00:11:36,880 Speaker 1: I are twenty eight years old, plan on working until 260 00:11:36,960 --> 00:11:39,880 Speaker 1: retirement age, and are currently in good health and have 261 00:11:40,040 --> 00:11:43,400 Speaker 1: low risk occupations. My wife is a music therapist and 262 00:11:43,440 --> 00:11:46,400 Speaker 1: I work from home in customer service. We set the 263 00:11:46,440 --> 00:11:50,320 Speaker 1: benefit amount to what's comfortable for our monthly expenses, and 264 00:11:50,360 --> 00:11:53,040 Speaker 1: the waiting period to start right after our current short 265 00:11:53,120 --> 00:11:56,720 Speaker 1: term disability policies would end. That pretty much leaves the 266 00:11:56,760 --> 00:12:00,760 Speaker 1: benefit period. We have options for two, five, or ten years, 267 00:12:01,000 --> 00:12:04,719 Speaker 1: or up to age sixty five. What are your recommendations 268 00:12:04,760 --> 00:12:08,520 Speaker 1: for the benefit period of long term disability policies? Does 269 00:12:08,520 --> 00:12:11,520 Speaker 1: the increase in premiums make up for the added benefit 270 00:12:11,600 --> 00:12:15,480 Speaker 1: if you opt for coverage until age six versus the 271 00:12:15,520 --> 00:12:18,800 Speaker 1: monthly savings if you opt for a shorter period. If 272 00:12:18,840 --> 00:12:22,440 Speaker 1: you recommend a benefit period until age sixty five, what 273 00:12:22,559 --> 00:12:25,640 Speaker 1: are the other policy benefits or writers that you feel 274 00:12:25,640 --> 00:12:28,720 Speaker 1: are unnecessary that you can help save you on your 275 00:12:28,760 --> 00:12:31,520 Speaker 1: monthly premiums. Thank you for taking my question. And I'm 276 00:12:31,559 --> 00:12:35,600 Speaker 1: also curious what your favorite Indiana based brewery is. Thanks John, 277 00:12:35,640 --> 00:12:38,280 Speaker 1: thanks for your question. Glad Policy Genius is working out 278 00:12:38,320 --> 00:12:40,680 Speaker 1: well for you. Yeah, they're great. And Matt favorite Indiana 279 00:12:40,679 --> 00:12:42,480 Speaker 1: brewery do you have one? Oh? Well, man, I think 280 00:12:42,520 --> 00:12:44,160 Speaker 1: both of us. Our favorite is for sure going to 281 00:12:44,200 --> 00:12:46,960 Speaker 1: be Three Floyd's. They make some amazing beers. I know 282 00:12:47,000 --> 00:12:49,720 Speaker 1: we've had a zombie dust on the show before, but 283 00:12:49,760 --> 00:12:54,560 Speaker 1: they make all sorts of awesome I p a s, stouts, everything, everything. Yeah, yeah, 284 00:12:54,600 --> 00:12:57,400 Speaker 1: they really do make some great beers. So Three Floyd's 285 00:12:57,760 --> 00:13:01,120 Speaker 1: top on our list from Indian of Indian breweries. But Matt, 286 00:13:01,160 --> 00:13:03,840 Speaker 1: let's talk about long term disability insurance and and let's 287 00:13:03,880 --> 00:13:07,680 Speaker 1: get to John's question. First. Most people don't even think 288 00:13:07,720 --> 00:13:10,480 Speaker 1: of shopping for long term disability insurance UM and so 289 00:13:10,880 --> 00:13:13,400 Speaker 1: big kudos to you, John for getting the insurance of 290 00:13:13,440 --> 00:13:15,880 Speaker 1: your family needs for doing that shopping. For folks that 291 00:13:15,960 --> 00:13:19,040 Speaker 1: haven't heard episode two thirty three, but we suggest you 292 00:13:19,120 --> 00:13:20,480 Speaker 1: go back and check that one out because we talked 293 00:13:20,480 --> 00:13:22,360 Speaker 1: about some of the insurance products that are the most 294 00:13:22,400 --> 00:13:25,439 Speaker 1: important to consider and long term disability is one of 295 00:13:25,480 --> 00:13:27,280 Speaker 1: those insurance products that a lot of people it's not 296 00:13:27,320 --> 00:13:29,600 Speaker 1: on their radar UM and it's something that after you 297 00:13:29,640 --> 00:13:32,559 Speaker 1: have life insurance, that you should be considering UM. And 298 00:13:32,800 --> 00:13:35,079 Speaker 1: in that episode, we mentioned the statistic that a quarter 299 00:13:35,120 --> 00:13:38,040 Speaker 1: of Americans will experience a disability that keeps them out 300 00:13:38,040 --> 00:13:40,559 Speaker 1: of work for three months or longer. And since long 301 00:13:40,640 --> 00:13:43,120 Speaker 1: term disability usually covers you if you're unable to work 302 00:13:43,160 --> 00:13:46,000 Speaker 1: for six months or longer, it's an important insurance for 303 00:13:46,280 --> 00:13:49,880 Speaker 1: lots of people to consider. And that also makes it important, 304 00:13:49,880 --> 00:13:51,560 Speaker 1: by the way, to have at least six months of 305 00:13:51,640 --> 00:13:54,920 Speaker 1: savings to cover you for shorter term needs. Having cash 306 00:13:54,920 --> 00:13:57,160 Speaker 1: on hand is huge to be able to help you 307 00:13:57,240 --> 00:13:59,320 Speaker 1: in the case of short term disability. And in a 308 00:13:59,320 --> 00:14:00,880 Speaker 1: good rule of thumb is to get a policy that 309 00:14:00,960 --> 00:14:04,480 Speaker 1: has coverage of roughly seventy of your gross income. It 310 00:14:04,480 --> 00:14:06,360 Speaker 1: sounds like John's on the right path when it comes 311 00:14:06,360 --> 00:14:08,480 Speaker 1: to shopping for for his policy. And then John, you know, 312 00:14:08,520 --> 00:14:10,840 Speaker 1: you're talking about some of the different benefit periods, some 313 00:14:10,880 --> 00:14:13,040 Speaker 1: of the payout terms, and you know you're asking specifically 314 00:14:13,040 --> 00:14:16,040 Speaker 1: to about writers UM. You know, like there's always gonna 315 00:14:16,040 --> 00:14:18,480 Speaker 1: be trade offs when it comes to looking at different 316 00:14:18,720 --> 00:14:21,120 Speaker 1: types of insurance, right, But like, really with any insurance 317 00:14:21,120 --> 00:14:23,360 Speaker 1: policy that you're looking at. So, for instance, if you know, 318 00:14:23,360 --> 00:14:25,480 Speaker 1: if you want the top of the line healthcare insurance 319 00:14:25,760 --> 00:14:28,160 Speaker 1: that covers everything in the world with little to to 320 00:14:28,320 --> 00:14:31,680 Speaker 1: know out of pocket costs, well, that's gonna be crazy expensive. 321 00:14:31,880 --> 00:14:34,040 Speaker 1: The premiums are gonna be outrageous on a Cadillac plan 322 00:14:34,120 --> 00:14:35,960 Speaker 1: like that, yeah, every single month. And so it's important 323 00:14:35,960 --> 00:14:38,720 Speaker 1: to buy a policy that meets your needs. And so 324 00:14:38,800 --> 00:14:40,840 Speaker 1: much of the answer comes down to your specific personal 325 00:14:40,840 --> 00:14:45,160 Speaker 1: financial situation and your ability to self insure, right. And 326 00:14:45,200 --> 00:14:46,800 Speaker 1: so the fact that you and your wife both have 327 00:14:47,000 --> 00:14:49,760 Speaker 1: an income is potentially a check in the box for 328 00:14:49,920 --> 00:14:52,680 Speaker 1: less coverage, but you'll also want to take into account 329 00:14:52,720 --> 00:14:55,320 Speaker 1: your debt obligations and how much you have in savings 330 00:14:55,320 --> 00:14:57,920 Speaker 1: as well. Yeah, it's definitely not a one size fits all, right, 331 00:14:57,960 --> 00:15:01,720 Speaker 1: Like the particulars of the cover that you're getting really 332 00:15:01,760 --> 00:15:04,840 Speaker 1: calm down to your specific situation. And and on the 333 00:15:04,880 --> 00:15:06,960 Speaker 1: note of self ensuring, that's why when we talk about 334 00:15:07,000 --> 00:15:09,360 Speaker 1: life insurance, Matt, we'd rather people opt for term life 335 00:15:09,360 --> 00:15:12,800 Speaker 1: in almost every situation. It's way cheaper and allows you 336 00:15:12,880 --> 00:15:15,480 Speaker 1: to build up enough over your working life and savings 337 00:15:15,520 --> 00:15:18,320 Speaker 1: and investments that you can self insure later on. So 338 00:15:18,440 --> 00:15:21,040 Speaker 1: some people are gonna need a fifteen year policy because 339 00:15:21,360 --> 00:15:23,920 Speaker 1: they're on the quick route the financial independence and they 340 00:15:23,960 --> 00:15:26,440 Speaker 1: plan on saving up enough money to make sure their 341 00:15:26,480 --> 00:15:28,520 Speaker 1: families taken care of in that time period. But others 342 00:15:28,520 --> 00:15:31,360 Speaker 1: are gonna need thirty years of life insurance coverage because 343 00:15:31,560 --> 00:15:34,400 Speaker 1: it's gonna take longer. And similarly, you're gonna want to 344 00:15:34,440 --> 00:15:38,360 Speaker 1: find the sweet spot for you on long term disability insurance, John, 345 00:15:38,800 --> 00:15:41,520 Speaker 1: finding adequate coverage that you can afford with the benefits 346 00:15:41,520 --> 00:15:43,840 Speaker 1: that will cover your basic needs in the case that 347 00:15:43,960 --> 00:15:45,960 Speaker 1: something does happen. I think that's really what what you're 348 00:15:45,960 --> 00:15:48,960 Speaker 1: shooting for, the coverage of the basic needs, what will 349 00:15:48,960 --> 00:15:51,080 Speaker 1: make sure that your family is taken care of in 350 00:15:51,120 --> 00:15:54,880 Speaker 1: the scenario that you do encounter some sort of disabling event. Yeah, 351 00:15:54,920 --> 00:15:57,160 Speaker 1: And in regards to to what writers you should opt 352 00:15:57,360 --> 00:16:00,760 Speaker 1: for or skip out on in order to save money, again, John, 353 00:16:00,760 --> 00:16:03,120 Speaker 1: this is difficult because so many of the factors that 354 00:16:03,200 --> 00:16:05,320 Speaker 1: go into making this decision are going to be personal. 355 00:16:05,440 --> 00:16:08,360 Speaker 1: You know, there are a ton of different writers, and 356 00:16:08,440 --> 00:16:10,400 Speaker 1: so you know, what we would advise is for you 357 00:16:10,440 --> 00:16:12,720 Speaker 1: to select some of the different options and see how 358 00:16:12,720 --> 00:16:15,280 Speaker 1: that impacts your premiums. Between looking at the cost and 359 00:16:15,320 --> 00:16:18,240 Speaker 1: seeing how these different writers will affect your policy and 360 00:16:18,240 --> 00:16:19,520 Speaker 1: the kind of peace of mind that it's going to 361 00:16:19,560 --> 00:16:21,400 Speaker 1: bring you, those are the type of factors that you're 362 00:16:21,400 --> 00:16:24,680 Speaker 1: gonna have to weigh for yourself personally. But to get specific, 363 00:16:24,720 --> 00:16:26,880 Speaker 1: you know, do make sure that your policy covers your 364 00:16:27,000 --> 00:16:29,640 Speaker 1: own occupation or depending on the policy, might be called 365 00:16:29,680 --> 00:16:33,400 Speaker 1: a regular occupation. But if your policy says any occupation, uh, 366 00:16:33,520 --> 00:16:35,520 Speaker 1: well they're gonna say, but you can still work, you 367 00:16:35,560 --> 00:16:37,480 Speaker 1: just have to do something else. And so that's definitely 368 00:16:37,480 --> 00:16:39,040 Speaker 1: something to keep in mind as you're kind of looking 369 00:16:39,040 --> 00:16:41,640 Speaker 1: through the options, no doubt, yep. So John, best of 370 00:16:41,720 --> 00:16:45,240 Speaker 1: luck as your finalizing that purchase, and hopefully it's a 371 00:16:45,240 --> 00:16:47,000 Speaker 1: mindor to a lot of other people out there that 372 00:16:47,160 --> 00:16:50,160 Speaker 1: long term disability insurance should potentially be on their radar. 373 00:16:50,520 --> 00:16:52,240 Speaker 1: Let's get to the next question, Matt. This one's about 374 00:16:52,240 --> 00:16:55,120 Speaker 1: that brand new baby we were talking about earlier, like 375 00:16:55,200 --> 00:16:59,200 Speaker 1: new inbox. Hi Matt, Hi Joel. My name is Lindsay. 376 00:16:59,200 --> 00:17:02,240 Speaker 1: I'm from Connecticut. UM I had a question about investing 377 00:17:02,320 --> 00:17:04,560 Speaker 1: for my son. He's five months old and we had 378 00:17:04,560 --> 00:17:06,760 Speaker 1: about two dollars you wanted to invest that we got 379 00:17:06,800 --> 00:17:10,320 Speaker 1: from his baby shower. Wondering what is the best platform 380 00:17:10,320 --> 00:17:13,800 Speaker 1: to use for that investment? Is it an index fund? Um? 381 00:17:13,840 --> 00:17:17,040 Speaker 1: The direction that we should go. Also, can we invest 382 00:17:17,080 --> 00:17:19,160 Speaker 1: in his name or is it our name? So it's 383 00:17:19,160 --> 00:17:23,000 Speaker 1: just some random questions about investing for him. UM. We're 384 00:17:23,040 --> 00:17:26,200 Speaker 1: big fans of the show. He recognizes your voices, UM, 385 00:17:26,240 --> 00:17:29,440 Speaker 1: and we'd love to turn this young money into powerful money, 386 00:17:29,560 --> 00:17:32,200 Speaker 1: just letting it sit through the years. Thank you guys 387 00:17:32,200 --> 00:17:35,040 Speaker 1: for all you do. Also, another note for friends out 388 00:17:35,040 --> 00:17:38,760 Speaker 1: there having babies soon, don't buy anything for your children. 389 00:17:38,880 --> 00:17:42,080 Speaker 1: So many people give away used items um. All told, 390 00:17:42,119 --> 00:17:45,600 Speaker 1: we have probably spent less than three on our son, UM, 391 00:17:45,640 --> 00:17:48,760 Speaker 1: and that's including used items that we bought, UM and 392 00:17:48,800 --> 00:17:51,280 Speaker 1: we're given to us. So thank you guys for all 393 00:17:51,320 --> 00:17:54,000 Speaker 1: you do. For everyone else out there having children, just 394 00:17:54,040 --> 00:17:56,399 Speaker 1: wait for those items to come along. If you start early, 395 00:17:56,440 --> 00:17:59,760 Speaker 1: they will come your way. Thanks guys. Okay, Lindsay, thanks 396 00:17:59,760 --> 00:18:02,480 Speaker 1: so much for that question and for that sip as well. Yeah, 397 00:18:02,520 --> 00:18:05,000 Speaker 1: we totally agree buying used for kids. It's totally the 398 00:18:05,000 --> 00:18:07,520 Speaker 1: way to go. Uh, you need far less than you 399 00:18:07,560 --> 00:18:09,600 Speaker 1: actually think you do. And you know, most of what 400 00:18:09,640 --> 00:18:12,040 Speaker 1: you use, like, you don't use for all that long 401 00:18:12,440 --> 00:18:14,959 Speaker 1: because kids grow so fast. But we certainly have been 402 00:18:15,000 --> 00:18:18,040 Speaker 1: recipients of either free stuff from neighbors you know they 403 00:18:18,040 --> 00:18:20,840 Speaker 1: posted up on Facebook or on next door, or just 404 00:18:20,920 --> 00:18:23,520 Speaker 1: you know scorn stuff used for for really cheap. Yeah. 405 00:18:23,560 --> 00:18:26,199 Speaker 1: Make sure. Yeah, your community, your friends, like people in 406 00:18:26,240 --> 00:18:28,520 Speaker 1: your life know that you're having a baby. Oftentimes they're 407 00:18:28,560 --> 00:18:30,560 Speaker 1: glad to give you a huge clothing hand me down 408 00:18:30,560 --> 00:18:32,359 Speaker 1: stuff for sure. Yeah, and of course we love that 409 00:18:32,400 --> 00:18:35,800 Speaker 1: you're getting your son started investing before he can even talk. 410 00:18:35,920 --> 00:18:38,760 Speaker 1: I actually do like his little cameo. They're super sweet 411 00:18:38,800 --> 00:18:40,080 Speaker 1: to be able to hear him kind of cooling in 412 00:18:40,080 --> 00:18:43,600 Speaker 1: the background. But h Lindsay plan is a great way 413 00:18:43,600 --> 00:18:46,000 Speaker 1: to go if your baby is likely to go to college. 414 00:18:46,440 --> 00:18:49,439 Speaker 1: Saving for College dot com does a great job reviewing 415 00:18:49,440 --> 00:18:52,280 Speaker 1: the five twenty nine planes of each date. And since 416 00:18:52,320 --> 00:18:54,480 Speaker 1: you are living in Connecticut, it looks like you should 417 00:18:54,480 --> 00:18:57,280 Speaker 1: stick with your state's plan in large part because of 418 00:18:57,280 --> 00:18:59,879 Speaker 1: the tax deduction you get, but you also have access 419 00:18:59,880 --> 00:19:02,800 Speaker 1: to us pretty solid range of investment options as well. 420 00:19:03,000 --> 00:19:07,120 Speaker 1: There are other states that have better investment options, like Illinois. However, 421 00:19:07,240 --> 00:19:09,320 Speaker 1: you're gonna have to weigh whether or not the tax 422 00:19:09,320 --> 00:19:12,239 Speaker 1: benefits you receive from your state if they're outweighed by 423 00:19:12,280 --> 00:19:15,520 Speaker 1: the performance options available in other states that you could 424 00:19:15,520 --> 00:19:18,560 Speaker 1: also be a part of. Yeah, and that tax deduction 425 00:19:18,760 --> 00:19:21,439 Speaker 1: is certainly a big check mark in favor of staying 426 00:19:21,600 --> 00:19:24,119 Speaker 1: the Connecticut state plan. Um. So, yeah, some some states 427 00:19:24,119 --> 00:19:25,600 Speaker 1: don't have that, right, you know, like like I think 428 00:19:25,600 --> 00:19:28,480 Speaker 1: New Jersey, it's like tough luck. Well, a lot of 429 00:19:28,520 --> 00:19:30,760 Speaker 1: stereo deduction don't offer any sort of state tax deduction. 430 00:19:30,800 --> 00:19:32,640 Speaker 1: It's if that's the case, you're gonna want to go 431 00:19:32,760 --> 00:19:35,840 Speaker 1: into another states plan that has the lowest teeth and 432 00:19:35,880 --> 00:19:38,760 Speaker 1: the best investment options. And again, Saving for College is 433 00:19:38,760 --> 00:19:42,199 Speaker 1: a great website to to look to see which states 434 00:19:42,320 --> 00:19:45,520 Speaker 1: have those best options. Ohio, Utah are a couple of 435 00:19:45,560 --> 00:19:47,399 Speaker 1: the ones. If you live in a state that doesn't 436 00:19:47,680 --> 00:19:50,119 Speaker 1: have a high rated plan and also doesn't offer a 437 00:19:50,119 --> 00:19:53,120 Speaker 1: tax deduction, that you're gonna want to consider. Lindsay also 438 00:19:53,160 --> 00:19:55,880 Speaker 1: to let's let's talk about other ways to invest, in particular, 439 00:19:56,040 --> 00:19:59,080 Speaker 1: if higher education isn't a priority. Um And and we 440 00:19:59,119 --> 00:20:01,840 Speaker 1: would say that the priority for you then would be 441 00:20:01,880 --> 00:20:04,800 Speaker 1: to put more money away in your own retirement accounts 442 00:20:04,800 --> 00:20:07,760 Speaker 1: perfectly in a roth ira. If you open up a 443 00:20:07,840 --> 00:20:11,040 Speaker 1: brokerage account in your son's name, those assets could prevent 444 00:20:11,160 --> 00:20:13,680 Speaker 1: him from receiving as much financial aid as he otherwise 445 00:20:13,720 --> 00:20:15,720 Speaker 1: would be able to down the road. The great thing 446 00:20:15,760 --> 00:20:17,840 Speaker 1: about the rath and the wrath in your name is 447 00:20:17,880 --> 00:20:20,000 Speaker 1: that you can pull out contributions that you've made through 448 00:20:20,000 --> 00:20:22,440 Speaker 1: the years at any point in time with no taxes 449 00:20:22,560 --> 00:20:25,080 Speaker 1: or penalties. So let's say he gets a ton of 450 00:20:25,160 --> 00:20:28,800 Speaker 1: scholarships because he's the next Albert Einstein or the next 451 00:20:28,920 --> 00:20:32,000 Speaker 1: Matt alt Mix. Maybe Oh yeah, it's gonna be just 452 00:20:32,080 --> 00:20:34,080 Speaker 1: like me. He knows my voice. It's right, that's true. 453 00:20:34,119 --> 00:20:37,200 Speaker 1: He's gonna be a little Matt. That's frightening. Um. But yeah, 454 00:20:37,240 --> 00:20:39,200 Speaker 1: then you could keep that money in there to grow 455 00:20:39,760 --> 00:20:42,119 Speaker 1: um for the future, and and then, you know, I 456 00:20:42,119 --> 00:20:44,400 Speaker 1: don't know, maybe help him with his first car purchase 457 00:20:44,880 --> 00:20:47,840 Speaker 1: or his home down payment at some point even further 458 00:20:47,920 --> 00:20:50,840 Speaker 1: on down the line. That rath just provides a lot 459 00:20:50,920 --> 00:20:54,320 Speaker 1: of flexibility if putting away money for higher education just 460 00:20:54,480 --> 00:20:57,200 Speaker 1: isn't that big of a priority. The only downside to 461 00:20:57,480 --> 00:21:00,600 Speaker 1: putting his money within your investment account is the accounting 462 00:21:00,640 --> 00:21:02,320 Speaker 1: that goes along with it right. And so if you're 463 00:21:02,320 --> 00:21:04,480 Speaker 1: like me and you love spreadsheets and kind of keeping 464 00:21:04,600 --> 00:21:07,280 Speaker 1: up with all the every single penny uh, to me, 465 00:21:07,440 --> 00:21:09,320 Speaker 1: like that doesn't seem like a chore because I already 466 00:21:09,359 --> 00:21:11,639 Speaker 1: have all that information down. But if that's not how 467 00:21:11,720 --> 00:21:14,159 Speaker 1: you do things in your household, that is, you know, 468 00:21:14,280 --> 00:21:16,359 Speaker 1: one barrier to to figure out, okay, how much have 469 00:21:16,640 --> 00:21:19,159 Speaker 1: we contributed, you know, into our account that's actually his, 470 00:21:19,560 --> 00:21:21,680 Speaker 1: and then kind of calculating what that should have actually 471 00:21:21,720 --> 00:21:23,840 Speaker 1: grown to. So it does take a little bit more paperwork, 472 00:21:23,880 --> 00:21:25,879 Speaker 1: a little more keeping up with but if you're already 473 00:21:25,920 --> 00:21:27,480 Speaker 1: doing that, then it's no big deal at all. But 474 00:21:27,560 --> 00:21:29,680 Speaker 1: we love your desire to see, you know, that small 475 00:21:29,760 --> 00:21:31,320 Speaker 1: amount of money that you have right now turned into 476 00:21:31,400 --> 00:21:34,240 Speaker 1: something meaningful for your son's future, and the best way 477 00:21:34,280 --> 00:21:35,720 Speaker 1: to do that is to make sure that that money 478 00:21:35,840 --> 00:21:39,160 Speaker 1: is actually invested, not just saved, and at the same time, 479 00:21:39,320 --> 00:21:42,159 Speaker 1: make sure that you are investing for your own future, right. 480 00:21:42,440 --> 00:21:45,080 Speaker 1: You know, even though we love our babies, oftentimes I 481 00:21:45,119 --> 00:21:48,400 Speaker 1: can lead some individuals to start saving for their kids 482 00:21:48,520 --> 00:21:51,240 Speaker 1: college before they even start saving for their own retirement, 483 00:21:51,480 --> 00:21:53,919 Speaker 1: and that puts everyone in a precarious spot until an 484 00:21:53,920 --> 00:21:55,760 Speaker 1: illustration we've used in the past, is like when you're 485 00:21:55,800 --> 00:21:57,800 Speaker 1: on the plane. You remember those days when you're flying 486 00:21:58,560 --> 00:22:01,639 Speaker 1: and if the oxygen face ask drops down, you always 487 00:22:01,640 --> 00:22:03,040 Speaker 1: want to make sure that you make sure that you 488 00:22:03,240 --> 00:22:05,480 Speaker 1: yourself are taken care of before you help those around you, 489 00:22:05,600 --> 00:22:07,560 Speaker 1: because if you're trying to help those around you and 490 00:22:07,640 --> 00:22:10,320 Speaker 1: nobody gets her mask on, well everyone's s o l Right. 491 00:22:10,520 --> 00:22:13,840 Speaker 1: It sounds selfish to say that you're prioritizing yourself or 492 00:22:13,840 --> 00:22:15,760 Speaker 1: your own retirement first, but it's actually the best thing 493 00:22:15,920 --> 00:22:18,960 Speaker 1: for you and your son, like your whole family. Yeah, absolutely, 494 00:22:19,040 --> 00:22:21,760 Speaker 1: So that RATH money is more flexible than five twenty 495 00:22:21,840 --> 00:22:23,879 Speaker 1: nine money, and you know, when it comes to your 496 00:22:23,920 --> 00:22:27,480 Speaker 1: own retirement, like there aren't any scholarships available for quitting work, 497 00:22:27,840 --> 00:22:29,680 Speaker 1: and so that's just definitely something that you want to 498 00:22:29,760 --> 00:22:32,040 Speaker 1: keep in mind. Make sure that you are fully funding 499 00:22:32,040 --> 00:22:34,320 Speaker 1: your own retirement before you're kind of sitting aside those 500 00:22:34,359 --> 00:22:36,560 Speaker 1: dollars for your son, no doubt. All Right, Matt, We've 501 00:22:36,560 --> 00:22:38,639 Speaker 1: got a couple more questions to get to, including a 502 00:22:38,720 --> 00:22:41,119 Speaker 1: really interesting maneuver that we've never talked about that you 503 00:22:41,160 --> 00:22:43,800 Speaker 1: can do with an H S a UM and CARBONA. 504 00:22:44,040 --> 00:22:45,800 Speaker 1: Do they actually have the lowest prices. Well, we'll get 505 00:22:45,800 --> 00:22:57,080 Speaker 1: to those right after this break. All right, we're back 506 00:22:57,119 --> 00:22:58,919 Speaker 1: from the break, and let's talk about that tax maneuver 507 00:22:59,000 --> 00:23:00,960 Speaker 1: JAL that you mentioned. We're gonna dive into some tax 508 00:23:01,040 --> 00:23:04,399 Speaker 1: strategy when it comes to investing in some retirement accounts. 509 00:23:04,440 --> 00:23:06,920 Speaker 1: Let's go ahead and hear that question now. Hi, Joel 510 00:23:06,960 --> 00:23:10,360 Speaker 1: and Matt, this is Laura calling from South Lake Tahoe, California. 511 00:23:11,080 --> 00:23:13,440 Speaker 1: I recently left a job and had to close out 512 00:23:13,480 --> 00:23:15,680 Speaker 1: my four oh one K due to insufficient funds to 513 00:23:15,800 --> 00:23:19,440 Speaker 1: keep it going, and I created a rollover account with 514 00:23:19,480 --> 00:23:22,600 Speaker 1: Fidelity and then have the idea that perhaps I can 515 00:23:22,680 --> 00:23:26,320 Speaker 1: move that money from Fidelity into an h s A. 516 00:23:26,800 --> 00:23:29,119 Speaker 1: When I inquired about it, I found out that you 517 00:23:29,240 --> 00:23:31,560 Speaker 1: can do this, but you can only do it one 518 00:23:31,800 --> 00:23:35,439 Speaker 1: time in your lifetime. So that got me thinking towards 519 00:23:35,480 --> 00:23:38,240 Speaker 1: the future and that perhaps it would be better to wait, 520 00:23:39,040 --> 00:23:42,520 Speaker 1: hang onto this rollover ira A, contribute to it, and 521 00:23:42,640 --> 00:23:46,320 Speaker 1: then closer to retirement, move that money into an hs 522 00:23:46,440 --> 00:23:51,879 Speaker 1: A to keep it from being taxed. I'm curious what 523 00:23:52,040 --> 00:23:54,920 Speaker 1: your thoughts are on this, what the pros and cons are, 524 00:23:55,440 --> 00:23:59,040 Speaker 1: and what I might be missing. So any information you 525 00:23:59,119 --> 00:24:02,440 Speaker 1: can provide greatly appreciated. Thank you so much, and I 526 00:24:02,520 --> 00:24:04,680 Speaker 1: love the show. All right, Matt, let's talk about this 527 00:24:04,880 --> 00:24:08,399 Speaker 1: once in a lifetime opportunity. It's uh, it's very rare, obviously, 528 00:24:08,480 --> 00:24:10,760 Speaker 1: it's it's just once in a lifetime that you're able 529 00:24:10,800 --> 00:24:12,960 Speaker 1: to do this. But um, and and it's funny, like 530 00:24:13,119 --> 00:24:16,520 Speaker 1: this is something to resist singing some talking heads. People 531 00:24:16,520 --> 00:24:18,320 Speaker 1: don't want to hear that. No, no, they don't. Uh, 532 00:24:18,520 --> 00:24:20,000 Speaker 1: it's funny. This is like one of those things that 533 00:24:20,119 --> 00:24:22,280 Speaker 1: that never gets talked about, like it's almost it's on 534 00:24:22,359 --> 00:24:25,760 Speaker 1: almost nobody's radar. But yes, you can actually convert an 535 00:24:25,800 --> 00:24:28,520 Speaker 1: IRA into an h s A once in your life, 536 00:24:28,600 --> 00:24:31,320 Speaker 1: a traditional IRA into an h s A. And since uh, 537 00:24:31,400 --> 00:24:33,520 Speaker 1: and this move can actually potentially save you some money 538 00:24:33,560 --> 00:24:35,600 Speaker 1: in taxes. So it's important to make sure that we 539 00:24:35,680 --> 00:24:37,520 Speaker 1: do it right. If this is something that you want 540 00:24:37,560 --> 00:24:39,680 Speaker 1: to do, and when you do make that IRA to 541 00:24:39,840 --> 00:24:41,760 Speaker 1: h s A rollover, you'll at the same time, you 542 00:24:41,760 --> 00:24:43,240 Speaker 1: need to make sure that you have an h s 543 00:24:43,320 --> 00:24:47,240 Speaker 1: A eligible high deductible health plan with no other simultaneous 544 00:24:47,280 --> 00:24:49,720 Speaker 1: health coverage. And also you have to make sure that 545 00:24:49,840 --> 00:24:52,280 Speaker 1: you stick with that high deductible plan for twelve months 546 00:24:52,720 --> 00:24:55,159 Speaker 1: after that rollover. So there's definitely some weeds that you've 547 00:24:55,160 --> 00:24:56,399 Speaker 1: got to get into with this, and you have to 548 00:24:56,480 --> 00:24:58,680 Speaker 1: make sure that you're doing the right things in order 549 00:24:58,720 --> 00:25:00,800 Speaker 1: to make this conversion. It you fail to do either 550 00:25:00,880 --> 00:25:03,520 Speaker 1: of those things, it becomes a taxable event and you'll 551 00:25:03,520 --> 00:25:05,639 Speaker 1: owe a ten percent penalty on top of that. So 552 00:25:05,880 --> 00:25:07,919 Speaker 1: it's uh interesting strategy. It's kind of cool. It can 553 00:25:07,960 --> 00:25:09,520 Speaker 1: save you some money in taxes, but at the same 554 00:25:09,600 --> 00:25:11,240 Speaker 1: time you could mess it up if you don't do 555 00:25:11,280 --> 00:25:13,920 Speaker 1: it right. That's right, But here's the bad news, Laura. 556 00:25:14,280 --> 00:25:16,000 Speaker 1: Whenever you do like to be the bearer of good 557 00:25:16,040 --> 00:25:17,440 Speaker 1: news and let you be the bearer of bad news, 558 00:25:18,240 --> 00:25:20,480 Speaker 1: I like to come in and shut it down. Um, 559 00:25:20,800 --> 00:25:23,360 Speaker 1: when you actually do that roll over, you're still limited 560 00:25:23,440 --> 00:25:26,399 Speaker 1: to the annual contribution limits that govern h S A 561 00:25:26,560 --> 00:25:29,280 Speaker 1: S and so for this year that means you can 562 00:25:29,359 --> 00:25:33,280 Speaker 1: only roll over for yourself and an extra thousand dollars 563 00:25:33,320 --> 00:25:36,000 Speaker 1: for folks over the age of fifty five. So unfortunately 564 00:25:36,040 --> 00:25:37,680 Speaker 1: that means that you you know, you can't contribute to 565 00:25:37,720 --> 00:25:40,160 Speaker 1: your ira A. Over the years with tax free money, 566 00:25:40,640 --> 00:25:42,960 Speaker 1: build up a giant nesseg and then roll over that 567 00:25:43,200 --> 00:25:46,080 Speaker 1: massive sum you know too in hs A that you 568 00:25:46,119 --> 00:25:48,680 Speaker 1: would then be able to withdraw and spend tax free 569 00:25:49,560 --> 00:25:52,800 Speaker 1: if you could, that would be an amazing strategy, but 570 00:25:52,920 --> 00:25:55,199 Speaker 1: unfortunately you can't. Um, you know, but it still does 571 00:25:55,280 --> 00:25:57,000 Speaker 1: make sense to go ahead and roll over what you 572 00:25:57,160 --> 00:25:59,760 Speaker 1: can to your h s A. It's still a good move, 573 00:26:00,040 --> 00:26:02,119 Speaker 1: but just not to the extent of of which I 574 00:26:02,160 --> 00:26:04,359 Speaker 1: think maybe you hadn't mind. Yeah. Yeah, it's a small 575 00:26:04,520 --> 00:26:06,600 Speaker 1: maneuver that can save you a little bit in tax 576 00:26:06,960 --> 00:26:08,800 Speaker 1: and um, and having that money in an h s 577 00:26:08,880 --> 00:26:10,840 Speaker 1: A will mean that it will never be taxed again, 578 00:26:11,040 --> 00:26:12,960 Speaker 1: which is pretty sweet. We've talked all about h s 579 00:26:13,040 --> 00:26:15,440 Speaker 1: A S Matt, I don't know, sometime early last year maybe, 580 00:26:15,720 --> 00:26:17,720 Speaker 1: And if you are in a high deductible health plan 581 00:26:18,119 --> 00:26:21,200 Speaker 1: and have access to a health savings account, it's something 582 00:26:21,240 --> 00:26:23,280 Speaker 1: you should definitely consider because it can be one of 583 00:26:23,359 --> 00:26:26,320 Speaker 1: the best ways to save for retirement. Yeah. Maybe recently 584 00:26:26,480 --> 00:26:29,240 Speaker 1: during open enrollment you joined a high deductible health care 585 00:26:29,280 --> 00:26:31,639 Speaker 1: plan and so you are now hs A eligible, and 586 00:26:31,680 --> 00:26:33,320 Speaker 1: so if that's you, we would definitely recommend to go 587 00:26:33,359 --> 00:26:35,480 Speaker 1: back and check out episode one oh five, that's the 588 00:26:35,480 --> 00:26:37,800 Speaker 1: episode where we talked about h says Yeah, you'll be 589 00:26:37,880 --> 00:26:40,520 Speaker 1: glad you did. All right, let's talk to an answer 590 00:26:40,520 --> 00:26:44,600 Speaker 1: to Laura's question about diversifying taxes and and having different 591 00:26:44,640 --> 00:26:48,720 Speaker 1: buckets to pull from in retirement. It probably actually makes sense, Laura, 592 00:26:48,800 --> 00:26:51,639 Speaker 1: to keep that traditional IRA as it is, but moving forward, 593 00:26:51,680 --> 00:26:53,520 Speaker 1: it might be a good idea for you to contribute 594 00:26:53,520 --> 00:26:56,600 Speaker 1: to a roth IRA instead of your traditional IRA. And 595 00:26:56,680 --> 00:26:59,200 Speaker 1: that's because by having both accounts, one that's funded with 596 00:26:59,240 --> 00:27:02,000 Speaker 1: pre tax money and other that's funded with post tax money, 597 00:27:02,200 --> 00:27:04,960 Speaker 1: it diversifies your tax liability in the future. And since 598 00:27:05,000 --> 00:27:06,960 Speaker 1: nobody knows what their tax rate is going to be 599 00:27:07,080 --> 00:27:09,560 Speaker 1: decades from now, U, it's a good idea to have 600 00:27:10,200 --> 00:27:12,360 Speaker 1: two different buckets at your disposal that you can pull from. 601 00:27:12,640 --> 00:27:14,640 Speaker 1: So when you do reach retirement age and you start 602 00:27:14,680 --> 00:27:17,400 Speaker 1: with drawing those funds, you can predict with near certainty 603 00:27:17,680 --> 00:27:19,399 Speaker 1: what your tax rate is going to be in overall 604 00:27:19,440 --> 00:27:21,400 Speaker 1: amount you're gonna have to pay in taxes every year 605 00:27:21,640 --> 00:27:23,879 Speaker 1: based on which buckets you're pulling from. Yeah, that's right. 606 00:27:23,880 --> 00:27:25,960 Speaker 1: So instead of having one point two million in your 607 00:27:26,040 --> 00:27:28,400 Speaker 1: IRA A, you have six hundred thousand in your IRA 608 00:27:28,400 --> 00:27:31,040 Speaker 1: A and then another six hundred thousand in a roth AT. 609 00:27:31,080 --> 00:27:33,560 Speaker 1: That'd be ideal. That'suns nice and we'd all like to 610 00:27:33,560 --> 00:27:36,120 Speaker 1: be there. But Laura, you know, if you're pretty sure 611 00:27:36,160 --> 00:27:38,239 Speaker 1: that you're gonna be paying more taxes in the future, uh, 612 00:27:38,480 --> 00:27:40,720 Speaker 1: perhaps maybe you know that you're in an industry or 613 00:27:40,800 --> 00:27:42,800 Speaker 1: you have a career path where you know that you're 614 00:27:42,840 --> 00:27:45,320 Speaker 1: gonna be earning more in the future, then converting some 615 00:27:45,480 --> 00:27:49,000 Speaker 1: of your traditional ira to a roth ira. Now it 616 00:27:49,040 --> 00:27:51,159 Speaker 1: could also be a good idea as well. And you 617 00:27:51,200 --> 00:27:52,800 Speaker 1: know you can do this gradually, just a little bit 618 00:27:52,880 --> 00:27:54,960 Speaker 1: every year. Then the reason for that is that way 619 00:27:55,160 --> 00:27:57,720 Speaker 1: those converted funds don't knock you up into a higher 620 00:27:57,800 --> 00:28:00,520 Speaker 1: tax bracket, or you can do a lot more during 621 00:28:00,600 --> 00:28:02,480 Speaker 1: a specific year. You know, say, if you know that 622 00:28:02,480 --> 00:28:04,879 Speaker 1: you're gonna be planning to take a sabbatical maybe ten 623 00:28:05,000 --> 00:28:07,000 Speaker 1: years from now, or maybe it's a year when you 624 00:28:07,080 --> 00:28:09,960 Speaker 1: happen to have a period of unemployment. Um in both 625 00:28:10,000 --> 00:28:12,679 Speaker 1: of these instances, your income tax rate will be lower, 626 00:28:13,160 --> 00:28:14,920 Speaker 1: making it a good year to do a conversion and 627 00:28:15,000 --> 00:28:18,199 Speaker 1: to pay taxes on those converted funds. So, Laura, hopefully 628 00:28:18,240 --> 00:28:20,240 Speaker 1: that helps. If you do make that conversion, make sure 629 00:28:20,320 --> 00:28:23,360 Speaker 1: to follow the exact guidelines so that you don't run 630 00:28:23,440 --> 00:28:24,879 Speaker 1: a foul of the I R s and best of 631 00:28:24,960 --> 00:28:28,040 Speaker 1: luck as you continue investing for retirement. All right, Matt, 632 00:28:28,080 --> 00:28:30,080 Speaker 1: let's get to this next question. This is from a 633 00:28:30,160 --> 00:28:32,800 Speaker 1: listener in Boston, and he's not quite sure that our 634 00:28:32,800 --> 00:28:35,399 Speaker 1: advice about buying a car from Carbona is spot on. 635 00:28:36,200 --> 00:28:38,600 Speaker 1: Hi jel him, Matt. This is Moss from Boston, Love 636 00:28:38,680 --> 00:28:41,680 Speaker 1: your podcast. In a recent episode of How the Money, 637 00:28:41,920 --> 00:28:44,520 Speaker 1: y'all talked about buying a used car from Carbona among 638 00:28:44,600 --> 00:28:47,640 Speaker 1: other outfits. Based on a very small sample size, it 639 00:28:47,680 --> 00:28:50,280 Speaker 1: seems like the Carmona prices are at, if not higher, 640 00:28:50,360 --> 00:28:52,920 Speaker 1: then the top end of the Kelly Blue Book price range. 641 00:28:53,440 --> 00:28:56,840 Speaker 1: How do I reconcile these two prices? I believe you've 642 00:28:56,840 --> 00:28:59,560 Speaker 1: also advised listeners to have any used car they're considering 643 00:28:59,640 --> 00:29:03,400 Speaker 1: buying checked out by a trusted local mechanic. Caravanna says 644 00:29:03,440 --> 00:29:06,560 Speaker 1: they have a hundred fifty point inspection. Is that sufficient 645 00:29:06,640 --> 00:29:09,560 Speaker 1: to replace the inspection by a trusted local mechanic? And 646 00:29:10,240 --> 00:29:12,760 Speaker 1: if not, how much might I expect to pay a 647 00:29:12,800 --> 00:29:16,400 Speaker 1: trusted local mechanic to do this pre purchase inspection. Thanks 648 00:29:16,440 --> 00:29:19,080 Speaker 1: for the great work you'll do, all right, Massa. Good 649 00:29:19,080 --> 00:29:21,840 Speaker 1: to hear from you. Uh, and you are right, Carbonna 650 00:29:21,880 --> 00:29:24,920 Speaker 1: prices are going to be a bit pricier than buying 651 00:29:24,960 --> 00:29:28,960 Speaker 1: from an individual on say, phasblic marketplace around Craigslist, but 652 00:29:29,040 --> 00:29:32,840 Speaker 1: it's not necessarily a whole lot more than dealerships because 653 00:29:32,880 --> 00:29:35,520 Speaker 1: of the different fees that they typically charge that that 654 00:29:35,680 --> 00:29:38,720 Speaker 1: aren't often posted on the website, by the way, you 655 00:29:38,760 --> 00:29:41,040 Speaker 1: find that out later on once you've kind of negotiated 656 00:29:41,080 --> 00:29:42,200 Speaker 1: what do you want to pay? Oh, well, there's all 657 00:29:42,200 --> 00:29:44,920 Speaker 1: these extra fees in addition to that price. Exactly. I 658 00:29:44,960 --> 00:29:47,200 Speaker 1: hate the surprise fees. Uh so it must because of that. 659 00:29:47,240 --> 00:29:49,840 Speaker 1: We like Carbonned in general, but you know we were 660 00:29:49,960 --> 00:29:53,320 Speaker 1: specifically recommending them in that case because of the additional 661 00:29:53,400 --> 00:29:56,480 Speaker 1: perks of shopping online. Uh. You know, you've got the delivery, 662 00:29:56,480 --> 00:29:59,520 Speaker 1: you've got the seven day return window. That's really clutch. Uh. 663 00:29:59,640 --> 00:30:01,840 Speaker 1: And you know that doesn't, as you pointed out me, 664 00:30:01,920 --> 00:30:04,840 Speaker 1: that you're likely to score the absolute cheapest price from them, 665 00:30:05,120 --> 00:30:07,320 Speaker 1: but it does present some additional benefits that might be 666 00:30:07,360 --> 00:30:09,520 Speaker 1: worth it to you. Yeah, and especially you know in 667 00:30:09,600 --> 00:30:12,360 Speaker 1: our answer to that collar, Matt, she didn't have any 668 00:30:12,400 --> 00:30:14,000 Speaker 1: way to get around to shop her cars, Like she 669 00:30:14,080 --> 00:30:16,440 Speaker 1: couldn't go and test drive a car that wasn't walking 670 00:30:16,480 --> 00:30:18,400 Speaker 1: distance from her home. And so in that case, having 671 00:30:18,440 --> 00:30:20,600 Speaker 1: a car show up to your door delivered from Carbona 672 00:30:20,800 --> 00:30:23,240 Speaker 1: UM can be helpful, right And and Moss, I think 673 00:30:23,440 --> 00:30:25,320 Speaker 1: you know one other thing that Carbona does not do 674 00:30:25,400 --> 00:30:28,480 Speaker 1: a great job at is is selling older model vehicles. 675 00:30:28,720 --> 00:30:31,080 Speaker 1: They mostly specialized I don't do that, right, Yeah, like 676 00:30:31,320 --> 00:30:32,920 Speaker 1: one to five year old cars and five year old 677 00:30:32,960 --> 00:30:34,720 Speaker 1: like that. Those are rare on their website too, right, 678 00:30:34,760 --> 00:30:36,440 Speaker 1: it's a lot of two and three year old used cars. Yeah, 679 00:30:36,440 --> 00:30:38,000 Speaker 1: they're not gonna have a thirteen year old car, you know, 680 00:30:38,080 --> 00:30:40,040 Speaker 1: sitting in their car vending machine. You know. They just 681 00:30:40,440 --> 00:30:42,560 Speaker 1: they recently installed one of those here in Atlanta's right 682 00:30:42,640 --> 00:30:45,400 Speaker 1: right on the connector. Yeah, and it's just so ridiculous looking. 683 00:30:45,480 --> 00:30:48,680 Speaker 1: It's like fifteen stories of just cars of cars is 684 00:30:48,720 --> 00:30:51,080 Speaker 1: looking up in glass. There's four cars on every floor, 685 00:30:51,120 --> 00:30:53,120 Speaker 1: and it's actually pretty impressive when you look at it. Yeah, 686 00:30:53,120 --> 00:30:54,840 Speaker 1: it is cool. I like their car vending machine. Their 687 00:30:54,880 --> 00:30:57,600 Speaker 1: their marketing has been great. But but yeah, if you're 688 00:30:57,680 --> 00:31:01,080 Speaker 1: looking to buy an older car, which Matt and I 689 00:31:01,160 --> 00:31:03,000 Speaker 1: are all about. Like my wife and I we drive 690 00:31:03,040 --> 00:31:05,400 Speaker 1: a two thousand six minivan and we love it. And 691 00:31:05,600 --> 00:31:07,320 Speaker 1: carbon is not really gonna be able to help you 692 00:31:07,400 --> 00:31:09,080 Speaker 1: out if you're looking for a car that's that old. 693 00:31:09,360 --> 00:31:13,080 Speaker 1: So basically, if you want mostly depreciated car that's older, 694 00:31:13,280 --> 00:31:15,040 Speaker 1: you're gonna have to go elsewhere, and that does mean 695 00:31:15,120 --> 00:31:18,280 Speaker 1: turning to Craigslist or Facebook yard sale. You're gonna want 696 00:31:18,280 --> 00:31:20,640 Speaker 1: to buy that car from a private seller instead of 697 00:31:20,760 --> 00:31:23,480 Speaker 1: going through a bigger company like Carbonna. Yeah, so specifically 698 00:31:23,520 --> 00:31:26,520 Speaker 1: duel in your situation. You actually sold a car to Carbonna, right, 699 00:31:26,560 --> 00:31:28,920 Speaker 1: you sold your leaf to them because they were offering 700 00:31:28,960 --> 00:31:31,160 Speaker 1: a really competitive price, I mean, in fact, better than 701 00:31:31,200 --> 00:31:33,000 Speaker 1: you were able to find anywhere else. And so for 702 00:31:33,080 --> 00:31:34,720 Speaker 1: you it made a lot of sense. Uh, And for 703 00:31:34,880 --> 00:31:36,880 Speaker 1: us several years ago, it made sense to purchase our 704 00:31:36,960 --> 00:31:40,640 Speaker 1: van from Carbonna specifically because of that seven day window 705 00:31:40,680 --> 00:31:43,000 Speaker 1: of time when you can take the vehicle back no 706 00:31:43,160 --> 00:31:45,360 Speaker 1: questions asked, which is like a huge perk when you're 707 00:31:45,400 --> 00:31:47,720 Speaker 1: buying a car. Yeah, yeah, exactly. And so you know, Mussle, 708 00:31:47,720 --> 00:31:51,120 Speaker 1: you're talking about maybe skipping out on an inspection because 709 00:31:51,160 --> 00:31:53,680 Speaker 1: of carbon is a hundred and fifty point inspection that 710 00:31:53,760 --> 00:31:56,480 Speaker 1: they do. But that's great that they say that, but like, 711 00:31:56,560 --> 00:31:59,920 Speaker 1: in my mind, that's just marketing. You know, I'm sure 712 00:32:00,000 --> 00:32:02,200 Speaker 1: they're doing something right. Oh yeah, yeah, they're they're doing something. 713 00:32:02,240 --> 00:32:04,520 Speaker 1: But I am still on every single time going to 714 00:32:04,600 --> 00:32:06,760 Speaker 1: make sure I had that car looked at. Double check 715 00:32:06,800 --> 00:32:09,520 Speaker 1: your work car. Yeah, yeah, exactly. And so that seven 716 00:32:09,600 --> 00:32:12,640 Speaker 1: day window allowed me to take that to a Honda 717 00:32:12,800 --> 00:32:16,720 Speaker 1: specific mechanic who knows Honda's like that is all he 718 00:32:16,800 --> 00:32:18,520 Speaker 1: works on. And so for me it was worth it 719 00:32:18,640 --> 00:32:21,720 Speaker 1: because you know, to to get a private seller selling 720 00:32:21,760 --> 00:32:24,000 Speaker 1: a vehicle to then let you take that vehicle or 721 00:32:24,120 --> 00:32:26,680 Speaker 1: you know, you convincing them to take that vehicle to 722 00:32:26,920 --> 00:32:29,440 Speaker 1: your mechanic of choice, leave it there overnight so that 723 00:32:29,520 --> 00:32:31,120 Speaker 1: they could you know, start it cold in the morning, 724 00:32:31,360 --> 00:32:33,520 Speaker 1: do all the things that they want to do. There's 725 00:32:33,560 --> 00:32:36,160 Speaker 1: there's some hassle, there's some inconvenience involved with that, and 726 00:32:36,200 --> 00:32:38,320 Speaker 1: there's a lot of private sellers that will just be like, nope, 727 00:32:38,720 --> 00:32:40,880 Speaker 1: because you've got this other guy who wants it and 728 00:32:41,040 --> 00:32:42,800 Speaker 1: they're not asking me to do any of this, So 729 00:32:42,960 --> 00:32:45,360 Speaker 1: that can exclude you from a deal. And so for me, 730 00:32:45,840 --> 00:32:48,320 Speaker 1: you know, being able to have that car looked at 731 00:32:48,440 --> 00:32:50,840 Speaker 1: on the back end after I purchased it, with the 732 00:32:50,960 --> 00:32:53,400 Speaker 1: ability to take it back if I wanted to outweighed 733 00:32:53,720 --> 00:32:56,320 Speaker 1: the castle involved with trying to get that vehicle checked 734 00:32:56,320 --> 00:32:58,840 Speaker 1: out before I purchased it. Uh. And so for us, 735 00:32:58,920 --> 00:33:01,560 Speaker 1: that's a big reason why I we we went that route. Uh. 736 00:33:01,640 --> 00:33:03,240 Speaker 1: And again we've talked about this on the show, but 737 00:33:03,280 --> 00:33:05,400 Speaker 1: I'm so glad I did that because the mechanic found 738 00:33:05,480 --> 00:33:08,000 Speaker 1: that the Odyssey it needed a new timing belt and 739 00:33:08,040 --> 00:33:10,920 Speaker 1: water pump, and because it was within uh carvon his 740 00:33:10,960 --> 00:33:13,640 Speaker 1: warranty window, that's something that they paid for at no 741 00:33:13,800 --> 00:33:15,959 Speaker 1: cost to me. And so basically, we've got it. We've 742 00:33:15,960 --> 00:33:18,120 Speaker 1: got a van with another hundred thousand miles in it 743 00:33:18,200 --> 00:33:21,160 Speaker 1: before we need to do uh that labor intensive work 744 00:33:21,200 --> 00:33:22,520 Speaker 1: that costs a lot of money. Yeah, and if you 745 00:33:22,600 --> 00:33:24,680 Speaker 1: had not hired your own mechanic to check that out, 746 00:33:24,960 --> 00:33:27,360 Speaker 1: you would have probably you know, kept the car because 747 00:33:27,360 --> 00:33:29,640 Speaker 1: you wouldn't have known about the issue. And then pretty 748 00:33:29,680 --> 00:33:32,200 Speaker 1: soon another thousand or two miles down the road, you 749 00:33:32,240 --> 00:33:34,560 Speaker 1: would have been like, oh, yeah, I've got this big 750 00:33:34,600 --> 00:33:36,800 Speaker 1: cost on my maybe even ten miles on the road. 751 00:33:36,840 --> 00:33:38,240 Speaker 1: And you know that whole time you're like, oh yeah, 752 00:33:38,240 --> 00:33:40,280 Speaker 1: I got a great car. But still at that point 753 00:33:40,560 --> 00:33:42,080 Speaker 1: you're like, oh, well, dang it. It's not as good 754 00:33:42,120 --> 00:33:43,760 Speaker 1: of a deal as I thought, And so for us, 755 00:33:43,880 --> 00:33:46,520 Speaker 1: having that peace of mind was certainly well worth the money. Yeah, 756 00:33:46,600 --> 00:33:48,640 Speaker 1: so it's it's always best, Moss. I have to do 757 00:33:48,720 --> 00:33:50,760 Speaker 1: your own due diligence and not just take the word 758 00:33:50,800 --> 00:33:53,800 Speaker 1: of any company or car dealership. Take it to someone 759 00:33:53,880 --> 00:33:56,280 Speaker 1: that you're hiring to do the work and assess whether 760 00:33:56,360 --> 00:33:59,080 Speaker 1: or not the vehicle is worth purchasing or what potential 761 00:33:59,160 --> 00:34:01,760 Speaker 1: issues could be coming up in the next few thousand miles. 762 00:34:02,040 --> 00:34:04,200 Speaker 1: And you asked about the price of that, I would 763 00:34:04,240 --> 00:34:07,120 Speaker 1: say probably typically between seventy and d dollars uh. To 764 00:34:07,280 --> 00:34:09,239 Speaker 1: get an experienced mechanic to take a look at your 765 00:34:09,320 --> 00:34:12,040 Speaker 1: vehicle usually takes about an hour of their time to 766 00:34:12,160 --> 00:34:14,520 Speaker 1: take that car for a test man to look under 767 00:34:14,560 --> 00:34:16,759 Speaker 1: the hood and kind of do some digging around. And 768 00:34:16,800 --> 00:34:19,000 Speaker 1: if we're talking frugal or cheap, it is cheap to 769 00:34:19,120 --> 00:34:21,719 Speaker 1: gip that step. Um. It is fruit seriously frugal to 770 00:34:21,760 --> 00:34:23,960 Speaker 1: pay the money, pay that hundred dollars um and and 771 00:34:24,080 --> 00:34:27,920 Speaker 1: to make sure that you're not buying a ten dollar mistake. Yeah. Absolutely, 772 00:34:27,920 --> 00:34:29,799 Speaker 1: I mean I would be happy to spend another another 773 00:34:29,880 --> 00:34:32,960 Speaker 1: hundred dollars right like I would gladly spend two just 774 00:34:33,080 --> 00:34:36,040 Speaker 1: to know that this thing is looked over by a professional, 775 00:34:36,160 --> 00:34:38,080 Speaker 1: like someone who really knows what they're looking for, to 776 00:34:38,120 --> 00:34:40,200 Speaker 1: get in there and sniff out any potential issues. Yeah, 777 00:34:40,239 --> 00:34:42,840 Speaker 1: for sure, because those issues, obviously you're gonna bring a 778 00:34:42,920 --> 00:34:45,279 Speaker 1: lot more headaches into your life in addition to what 779 00:34:45,320 --> 00:34:47,560 Speaker 1: it's gonna cost you to fix those things as they 780 00:34:47,600 --> 00:34:49,719 Speaker 1: pop up with your car. Plus up north to I 781 00:34:49,800 --> 00:34:51,759 Speaker 1: kind of think that there's there's more issues with cars, right, 782 00:34:51,800 --> 00:34:53,400 Speaker 1: Like when you're driving around the snow, you've got like 783 00:34:53,440 --> 00:34:56,960 Speaker 1: salt damage to the under the undercarriage, that's the thing, right, Yeah, 784 00:34:57,000 --> 00:34:59,279 Speaker 1: I think so. I think so. I've never lived up north, 785 00:34:59,360 --> 00:35:02,239 Speaker 1: so I've never had had to maintain a vehicle that 786 00:35:02,600 --> 00:35:07,400 Speaker 1: was being attacked by salt, getting destroyed by the chemicals 787 00:35:07,480 --> 00:35:09,520 Speaker 1: from the road like that. But I think any mechanic 788 00:35:10,040 --> 00:35:12,880 Speaker 1: up there that's worth his or her salts would be 789 00:35:12,920 --> 00:35:14,600 Speaker 1: able to look out for that. So I like your 790 00:35:14,800 --> 00:35:16,640 Speaker 1: salt pond there too. Very nextually done a lot of 791 00:35:16,680 --> 00:35:21,120 Speaker 1: salt talk. Yeah, but Massa, thanks for your question. All right, Matt, 792 00:35:21,160 --> 00:35:22,520 Speaker 1: let's get back to the beer that we had on 793 00:35:22,840 --> 00:35:25,800 Speaker 1: this episode. This one was from Paradox Beer. Company. It 794 00:35:25,920 --> 00:35:28,560 Speaker 1: was passion of the fruit. It's a passion fruit sour. 795 00:35:28,800 --> 00:35:31,040 Speaker 1: So what yeah, what were your thoughts on this beer? Man? Dude, 796 00:35:31,040 --> 00:35:32,879 Speaker 1: I love that we are living in the golden age 797 00:35:32,920 --> 00:35:36,000 Speaker 1: of craft beer. You know, we've had literally at this point, 798 00:35:36,160 --> 00:35:38,960 Speaker 1: hundreds of different beers on the show. This is a 799 00:35:39,040 --> 00:35:41,840 Speaker 1: golden sour, and dude, I love these kind of golden 800 00:35:42,000 --> 00:35:45,000 Speaker 1: blonde sours. Uh. They are at my absolute favorites, especially 801 00:35:45,040 --> 00:35:46,960 Speaker 1: ones that are aged in barrel, so it gives it 802 00:35:47,000 --> 00:35:49,320 Speaker 1: that touch of funkiness. Uh. And it did have that 803 00:35:49,360 --> 00:35:52,800 Speaker 1: passion fruit going on, but it also wasn't like overwhelmingly 804 00:35:53,040 --> 00:35:55,080 Speaker 1: passion fruit where it felt like, uh, you know, like 805 00:35:55,160 --> 00:35:58,200 Speaker 1: there's some of those teaky tropical beers before where they're 806 00:35:58,200 --> 00:35:59,719 Speaker 1: just like overwhelming you with the kind of like these 807 00:35:59,719 --> 00:36:01,560 Speaker 1: trop go flavors. I feel like this one was a 808 00:36:01,600 --> 00:36:04,800 Speaker 1: little more subtle, and it almost had like the passion 809 00:36:04,840 --> 00:36:07,120 Speaker 1: fruit it kind of lent its way to like a spicy, 810 00:36:07,560 --> 00:36:09,840 Speaker 1: almost kind of flavor profile. I almost had like a 811 00:36:09,920 --> 00:36:12,040 Speaker 1: touch of pepper in my mind, so it kind of 812 00:36:12,040 --> 00:36:14,759 Speaker 1: almost had this more herbal nature going on versus the 813 00:36:14,840 --> 00:36:18,080 Speaker 1: tropical fruit vibe, which I really appreciated. But it also 814 00:36:18,120 --> 00:36:20,040 Speaker 1: reminded me of some of the warmer days that we 815 00:36:20,120 --> 00:36:21,880 Speaker 1: have the head. Yeah, I'm I don't want to be 816 00:36:21,880 --> 00:36:23,960 Speaker 1: a whimp, but I'm kind of ready for spring already, 817 00:36:24,840 --> 00:36:26,880 Speaker 1: and I know are barely been cold. We were just 818 00:36:26,920 --> 00:36:29,360 Speaker 1: talking about for two weeks listeners in the North and 819 00:36:29,400 --> 00:36:30,600 Speaker 1: what they have to go with it through with cars, 820 00:36:30,840 --> 00:36:32,359 Speaker 1: but what they have to go through just with snow 821 00:36:32,440 --> 00:36:35,560 Speaker 1: in general, and just like long months of extreme cold. Um, 822 00:36:36,000 --> 00:36:37,760 Speaker 1: we don't have that down here in Atlanta. But I'm 823 00:36:37,760 --> 00:36:40,160 Speaker 1: still a woman. I'm ready for spring. But um, yeah, 824 00:36:40,200 --> 00:36:42,920 Speaker 1: I really like this beer. I liked the level of 825 00:36:42,960 --> 00:36:44,839 Speaker 1: passion fruit that are brought. It had some like kind 826 00:36:44,880 --> 00:36:47,600 Speaker 1: of syrupy sweetness, but then enough oak from the aging 827 00:36:47,640 --> 00:36:49,640 Speaker 1: to give it some balance. Yeah, I really tasty beer. 828 00:36:49,640 --> 00:36:52,400 Speaker 1: I think Paradox is making like only barrel aged showers, 829 00:36:52,680 --> 00:36:54,880 Speaker 1: So um, I'm expecting it to be excellent. If like 830 00:36:54,960 --> 00:36:56,760 Speaker 1: that's the only thing you do, it better be awesome 831 00:36:56,800 --> 00:36:58,120 Speaker 1: than do you know how to do it? Yeah, and 832 00:36:58,280 --> 00:36:59,560 Speaker 1: they're doing it right. So I'm glad we have to 833 00:36:59,600 --> 00:37:01,440 Speaker 1: have this one on the show today. All right, But 834 00:37:01,480 --> 00:37:03,480 Speaker 1: that's gonna do it for this episode. If you want 835 00:37:03,520 --> 00:37:05,239 Speaker 1: the show notes for this episode just go to our 836 00:37:05,280 --> 00:37:08,000 Speaker 1: website at how to money dot com. Yeah, and if 837 00:37:08,000 --> 00:37:09,480 Speaker 1: you're a new listener, we would love it if you 838 00:37:09,520 --> 00:37:12,879 Speaker 1: were to hit subscribe there in your pod catcher. Of course, 839 00:37:12,920 --> 00:37:14,560 Speaker 1: that makes sure that you don't miss out on any 840 00:37:14,640 --> 00:37:16,879 Speaker 1: of the new episodes that we were gonna publish here 841 00:37:17,320 --> 00:37:20,200 Speaker 1: very soon. No more fomo. If you subscribe in two days, 842 00:37:20,280 --> 00:37:23,080 Speaker 1: there'll be another episode. Alright, Joe, that's gonna be it 843 00:37:23,160 --> 00:37:25,560 Speaker 1: for this one until next time. Best Friends Out, Best 844 00:37:25,640 --> 00:37:26,279 Speaker 1: Friends Out.