1 00:00:00,120 --> 00:00:02,920 Speaker 1: Welcome to How the Money. I'm Joel and I am Matt, 2 00:00:03,040 --> 00:00:06,880 Speaker 1: and today we're discussing buffets, brilliant trading data for dollars, 3 00:00:07,080 --> 00:00:28,920 Speaker 1: and the foibles of student loan forgiveness. That's right, buddy. 4 00:00:28,960 --> 00:00:32,160 Speaker 1: We've got a bunch of alliteration going on during today's episode, 5 00:00:32,640 --> 00:00:34,040 Speaker 1: and that is the end of it. We will not 6 00:00:34,080 --> 00:00:39,560 Speaker 1: continue um with rhymes, alliteration, or any fonetic device except 7 00:00:39,600 --> 00:00:40,880 Speaker 1: for the fact that we call it the Friday Flight. 8 00:00:40,960 --> 00:00:43,320 Speaker 1: I would say we are the Daniel Tiger of personal finance. 9 00:00:44,760 --> 00:00:47,440 Speaker 1: I prefer Mr. Rogers like the original, because you know, 10 00:00:47,520 --> 00:00:49,240 Speaker 1: you want to face, you want like a real human 11 00:00:49,280 --> 00:00:50,959 Speaker 1: being there, and I feel like we've got more Mr. 12 00:00:51,040 --> 00:00:52,839 Speaker 1: Roger vibes than Daniel Tygers. The only problem is you 13 00:00:52,840 --> 00:00:54,520 Speaker 1: can't You can't wear a card again in this eighty 14 00:00:54,520 --> 00:00:57,120 Speaker 1: plus degree heat. That is true. But this is our 15 00:00:57,160 --> 00:00:59,920 Speaker 1: Friday Flight where we're gonna talk about the different head 16 00:01:00,040 --> 00:01:01,760 Speaker 1: lines that we've come across this week and how they're 17 00:01:01,760 --> 00:01:04,880 Speaker 1: going to impact your finances. Uh. Sometimes we kick it 18 00:01:04,920 --> 00:01:07,160 Speaker 1: off with a quick little story about us personally, but 19 00:01:07,160 --> 00:01:09,160 Speaker 1: we're gonna kind of dive into it because we saw 20 00:01:09,319 --> 00:01:12,960 Speaker 1: that the I R S released the updated hs A 21 00:01:12,959 --> 00:01:17,040 Speaker 1: annual contribution limits, and so that is a health savings account. 22 00:01:17,360 --> 00:01:19,640 Speaker 1: If you have access to one of those, you can 23 00:01:19,640 --> 00:01:23,119 Speaker 1: now contribute an additional two hundred dollars if you are 24 00:01:23,200 --> 00:01:25,800 Speaker 1: an individual every year. Uh and so that bomps that 25 00:01:25,880 --> 00:01:28,200 Speaker 1: up to three thousand, eight hundred and fifty dollars. But 26 00:01:28,240 --> 00:01:31,119 Speaker 1: if you've got a family plan, that has increased by 27 00:01:31,240 --> 00:01:34,360 Speaker 1: four d and fifty bucks, so that caps out now 28 00:01:34,680 --> 00:01:37,760 Speaker 1: at seven thousand, seven and fifty dollars. And and I 29 00:01:37,800 --> 00:01:40,120 Speaker 1: know we talked about hs A sometimes, but just in 30 00:01:40,120 --> 00:01:42,160 Speaker 1: case you're one of those folks who hasn't heard us 31 00:01:42,160 --> 00:01:45,360 Speaker 1: talk about it, talk about how much we specifically love them. Yeah, 32 00:01:45,440 --> 00:01:48,960 Speaker 1: we think they are potentially the greatest retirement account in existence. 33 00:01:49,000 --> 00:01:51,440 Speaker 1: The triple threat. It is the it's yeah, the most 34 00:01:51,520 --> 00:01:54,160 Speaker 1: advantages from a tax standpoint of any account out there's 35 00:01:54,560 --> 00:01:56,760 Speaker 1: never taxed, those dollars will never be taxed, the growth 36 00:01:56,800 --> 00:01:59,720 Speaker 1: of those dollars will never be taxed. And it is 37 00:01:59,760 --> 00:02:02,200 Speaker 1: also has a lot of flexibility in how and when 38 00:02:02,600 --> 00:02:04,960 Speaker 1: you pull those dollars. So the h s A is 39 00:02:05,280 --> 00:02:08,400 Speaker 1: fantastic to see that folks can put more money aside. 40 00:02:08,760 --> 00:02:11,399 Speaker 1: Moving forward, Matt into an h s A is only 41 00:02:11,400 --> 00:02:13,440 Speaker 1: good news. We want to see how the money listeners 42 00:02:13,720 --> 00:02:16,760 Speaker 1: taking full advantage. And by the way, if you want 43 00:02:16,840 --> 00:02:20,239 Speaker 1: to know more about h s A s are full 44 00:02:20,280 --> 00:02:22,480 Speaker 1: take on them. We went to a lot of detail 45 00:02:22,520 --> 00:02:24,800 Speaker 1: back in episode one oh five. That's right, man, and 46 00:02:24,880 --> 00:02:26,919 Speaker 1: we we've had the ground running. Let's keep going. Let's 47 00:02:26,960 --> 00:02:29,720 Speaker 1: talk about student loans and dude, we came across the 48 00:02:29,760 --> 00:02:33,359 Speaker 1: story this week and apparently a little more than one 49 00:02:33,440 --> 00:02:37,240 Speaker 1: percent of folks with student loan payments actually kept paying 50 00:02:37,280 --> 00:02:40,560 Speaker 1: on those loans during this payment pause that we've experienced 51 00:02:40,560 --> 00:02:43,200 Speaker 1: over the last couple of years. This is according to 52 00:02:43,280 --> 00:02:46,880 Speaker 1: data from the Department of Education. Some of those alliers 53 00:02:46,880 --> 00:02:49,720 Speaker 1: have taken advantage of the interest freeze in order to 54 00:02:49,760 --> 00:02:53,480 Speaker 1: pay off their loans completely, which we think is super cool. 55 00:02:53,800 --> 00:02:56,240 Speaker 1: It's it's not not again, it's not it's not a 56 00:02:56,280 --> 00:02:59,200 Speaker 1: path that many folks took. But the ability to take advantage, 57 00:02:59,639 --> 00:03:02,520 Speaker 1: uh of not paying any interest to completely remove this 58 00:03:03,040 --> 00:03:05,560 Speaker 1: this burden from your life. I think it's really cool. Yeah, 59 00:03:05,520 --> 00:03:07,440 Speaker 1: they've decided not to look a gift horse in the 60 00:03:07,480 --> 00:03:10,080 Speaker 1: mouth and basically taking full advantage of that freeze so 61 00:03:10,120 --> 00:03:13,600 Speaker 1: they could uh eliminate their student loans altogether, which is cool. Yeah, 62 00:03:13,680 --> 00:03:15,720 Speaker 1: that's right, and we've recommended that folks use this pause 63 00:03:15,800 --> 00:03:19,800 Speaker 1: to stockpile more cash potentially for just a massive student 64 00:03:19,840 --> 00:03:23,680 Speaker 1: loan payment once payments were to to resume, or maybe 65 00:03:23,680 --> 00:03:25,399 Speaker 1: you can take that additional money and you can start 66 00:03:25,440 --> 00:03:28,680 Speaker 1: investing if that's not something you've already done. But just 67 00:03:29,200 --> 00:03:32,760 Speaker 1: generally speaking, using that pause to eliminate those loans, we 68 00:03:32,840 --> 00:03:35,240 Speaker 1: think is a savvy move as well, where you're just 69 00:03:35,320 --> 00:03:37,720 Speaker 1: able to just again remove that burden, you get that 70 00:03:37,760 --> 00:03:40,000 Speaker 1: monkey off your back. I really like seeing how some 71 00:03:40,040 --> 00:03:42,160 Speaker 1: folks have used that additional money to pay off their 72 00:03:42,200 --> 00:03:45,960 Speaker 1: private student loans because, of course, uh, federal student loans 73 00:03:45,960 --> 00:03:47,640 Speaker 1: are the loans that we saw a pause on, but 74 00:03:47,680 --> 00:03:51,520 Speaker 1: private loan payments continued. There's there's actually data from the FED, 75 00:03:51,680 --> 00:03:54,400 Speaker 1: the New York FED that showed a massive increase in 76 00:03:54,440 --> 00:03:57,280 Speaker 1: the amount of money that was being paid parts private loans. 77 00:03:57,320 --> 00:04:00,560 Speaker 1: To see that too encouraging. But there is one potential 78 00:04:00,560 --> 00:04:03,640 Speaker 1: downside to this tactic, though, and that is missing out 79 00:04:03,640 --> 00:04:07,240 Speaker 1: on some student loan forgiveness if that happens. Yeah, so 80 00:04:07,480 --> 00:04:10,280 Speaker 1: let's talk about that, Matt, because that is maybe the 81 00:04:10,280 --> 00:04:13,240 Speaker 1: big elephants in the in the room at this point 82 00:04:13,600 --> 00:04:17,160 Speaker 1: is will student loan forgiveness happens. And it's looking more 83 00:04:17,240 --> 00:04:20,320 Speaker 1: likely that at least some amount of forgiveness is in 84 00:04:20,320 --> 00:04:23,440 Speaker 1: the cards, and that's because the Biden administration has given 85 00:04:23,520 --> 00:04:26,520 Speaker 1: some indications that an announcement on this front might be 86 00:04:26,520 --> 00:04:29,040 Speaker 1: coming soon. Basically, they've said they're giving it a quote 87 00:04:29,080 --> 00:04:32,000 Speaker 1: unquote hard look. And so while this would knock out 88 00:04:32,040 --> 00:04:34,800 Speaker 1: student loan debt for a lot of folks, we're gonna 89 00:04:34,800 --> 00:04:37,839 Speaker 1: give our thoughts. Were not big fans of this move. 90 00:04:37,920 --> 00:04:40,120 Speaker 1: We don't really love this idea. And that's not because 91 00:04:40,160 --> 00:04:42,919 Speaker 1: we hate people with student loans. It's just because, you know, 92 00:04:42,960 --> 00:04:45,200 Speaker 1: there are folks who never took on student loan debt 93 00:04:45,279 --> 00:04:48,400 Speaker 1: or or dutifully paid off their loans. Those folks get 94 00:04:48,480 --> 00:04:50,800 Speaker 1: left in the dust if this gets implemented, which is 95 00:04:50,880 --> 00:04:53,280 Speaker 1: kind of demoralizing. But there there are other things too, 96 00:04:53,279 --> 00:04:55,960 Speaker 1: write because we're already in a period of high inflation, 97 00:04:56,240 --> 00:04:58,800 Speaker 1: and forgiving even more student loan debt could create more 98 00:04:58,920 --> 00:05:02,880 Speaker 1: upward inflationary russure, which affects all of us. And so 99 00:05:03,360 --> 00:05:05,440 Speaker 1: I think the other thing here that that I see 100 00:05:05,480 --> 00:05:07,719 Speaker 1: clearly Matt, and I'm surprised more people don't see it 101 00:05:07,760 --> 00:05:11,440 Speaker 1: is that this policy would exacerbate income inequality, right because 102 00:05:11,720 --> 00:05:14,160 Speaker 1: folks with college degrees, they are in a good bit 103 00:05:14,200 --> 00:05:17,159 Speaker 1: more during their lifetime. That's typically why they went to 104 00:05:17,200 --> 00:05:20,080 Speaker 1: college in order. That's what the statistics bear out right, 105 00:05:20,160 --> 00:05:24,120 Speaker 1: And and so because of that, we're we're we're advantaging 106 00:05:24,120 --> 00:05:27,960 Speaker 1: people who have already already have the advantage of most 107 00:05:28,000 --> 00:05:30,000 Speaker 1: folks at least a college degree. There's some folks who 108 00:05:30,000 --> 00:05:32,120 Speaker 1: go to college who take on student loan debt and 109 00:05:32,120 --> 00:05:34,839 Speaker 1: who don't graduate. Those people are in a really tough position. 110 00:05:35,160 --> 00:05:38,760 Speaker 1: But but there are other political, societal, and governmental levels. 111 00:05:38,800 --> 00:05:40,920 Speaker 1: I think that we could be pulling to help the 112 00:05:41,000 --> 00:05:44,000 Speaker 1: least advantage folks among us. For giving a giant chunk 113 00:05:44,000 --> 00:05:46,279 Speaker 1: of student loan debt, it just doesn't seem prudent to me. 114 00:05:46,640 --> 00:05:48,960 Speaker 1: And some folks have said, how more of the more 115 00:05:49,000 --> 00:05:52,000 Speaker 1: of like a targeted relief approach or like some targeted 116 00:05:52,040 --> 00:05:54,240 Speaker 1: forgiveness might be the path to take. But even still, 117 00:05:54,279 --> 00:05:56,760 Speaker 1: like you said, you're not taking like when you consider 118 00:05:56,800 --> 00:05:59,520 Speaker 1: that you're not taking into accounts the lifetime earnings of 119 00:05:59,520 --> 00:06:02,240 Speaker 1: an individual. I saw one example and they said, it's 120 00:06:02,279 --> 00:06:04,480 Speaker 1: it's sort of like judging the wealth of somebody who 121 00:06:04,560 --> 00:06:07,640 Speaker 1: owns a home by only considering their mortgage debt but 122 00:06:07,760 --> 00:06:10,800 Speaker 1: not taking into account the asset of that property. You're 123 00:06:10,800 --> 00:06:12,960 Speaker 1: looking at the negative, but you're not taking into account 124 00:06:13,000 --> 00:06:17,840 Speaker 1: the future potential for that positive return of that higher education. 125 00:06:18,320 --> 00:06:21,359 Speaker 1: And the other thing as well, student loan forgiveness. It 126 00:06:21,400 --> 00:06:24,840 Speaker 1: doesn't address the root causes that are making college degrees 127 00:06:24,839 --> 00:06:27,520 Speaker 1: more expensive in the first place. It's like it's like 128 00:06:27,520 --> 00:06:30,760 Speaker 1: putting a band aid on a terrible wound that you 129 00:06:30,839 --> 00:06:33,080 Speaker 1: might have. It might cover it up, but like it's 130 00:06:33,080 --> 00:06:36,039 Speaker 1: sure not fixing that the actual problem. Were that to 131 00:06:36,080 --> 00:06:38,440 Speaker 1: be the case, like you need you need an actual doctor, 132 00:06:38,520 --> 00:06:40,840 Speaker 1: not just a band aid, just as like a stop gap. 133 00:06:41,320 --> 00:06:44,240 Speaker 1: But on a practical note, if you still have student 134 00:06:44,279 --> 00:06:46,520 Speaker 1: loan debt, well you would recommend for you to to 135 00:06:46,640 --> 00:06:49,200 Speaker 1: not rush to pay it off. You already don't have 136 00:06:49,240 --> 00:06:51,240 Speaker 1: to make any payments now until the fall. But there's 137 00:06:51,240 --> 00:06:53,280 Speaker 1: a chance, because of this, you know, the talk that 138 00:06:53,320 --> 00:06:55,480 Speaker 1: there might be some forgiveness. There's a chance that a 139 00:06:55,600 --> 00:06:59,599 Speaker 1: chunk of your your federal loan might get forgiven before 140 00:06:59,680 --> 00:07:02,400 Speaker 1: the you start day anyways, And so yeah, we don't 141 00:07:02,400 --> 00:07:04,720 Speaker 1: we don't necessarily think that this is great policy. We 142 00:07:04,760 --> 00:07:06,800 Speaker 1: don't think this is a great idea that this might happen. 143 00:07:07,560 --> 00:07:09,279 Speaker 1: Even still, we don't want you to miss out on 144 00:07:09,320 --> 00:07:12,160 Speaker 1: this generous benefit if you qualify. And so again we 145 00:07:12,200 --> 00:07:14,000 Speaker 1: don't have solid details, but we will be sure to 146 00:07:14,000 --> 00:07:17,200 Speaker 1: share them with you if or when they get announced. 147 00:07:17,440 --> 00:07:19,800 Speaker 1: We will of course relay the news here. And by 148 00:07:19,840 --> 00:07:22,280 Speaker 1: the way, we realized this is kind of we've got 149 00:07:22,320 --> 00:07:26,240 Speaker 1: a little opinionated on this section. How too many opinion columns, right, 150 00:07:26,280 --> 00:07:28,400 Speaker 1: And you know it is our show man. I think 151 00:07:28,400 --> 00:07:29,760 Speaker 1: we can give our opinion every once in a while. 152 00:07:30,080 --> 00:07:33,000 Speaker 1: And this is one of those things where we're not 153 00:07:33,080 --> 00:07:36,040 Speaker 1: against government's spending and we're not against certain levers that 154 00:07:36,080 --> 00:07:38,280 Speaker 1: can be pulled in order to make people's lives better. 155 00:07:38,640 --> 00:07:40,080 Speaker 1: This is one where I think the target is off 156 00:07:40,080 --> 00:07:41,840 Speaker 1: the mark and it's not helping the people who are 157 00:07:41,880 --> 00:07:44,400 Speaker 1: hurting the most. But we can link to other stats 158 00:07:44,440 --> 00:07:46,080 Speaker 1: as well. I mean, like we've read up on this 159 00:07:46,160 --> 00:07:48,400 Speaker 1: a good bit, Like there's a Brookings Institute article and 160 00:07:48,440 --> 00:07:51,480 Speaker 1: they and they show how the highest degree arners, like 161 00:07:51,480 --> 00:07:54,280 Speaker 1: the highest wage earners, ultimately received the most benefit from 162 00:07:54,320 --> 00:07:56,800 Speaker 1: any relief and from any of these student loaned pauses 163 00:07:56,840 --> 00:07:59,240 Speaker 1: that we've already experienced. Yeah, but a last you know, 164 00:07:59,280 --> 00:08:01,760 Speaker 1: you and I we're curious. We're interested in these sorts 165 00:08:01,800 --> 00:08:04,080 Speaker 1: of things. We're not policy wonks, though, So if you 166 00:08:04,160 --> 00:08:06,160 Speaker 1: if you've got feedback for us, we're always open to 167 00:08:06,200 --> 00:08:08,120 Speaker 1: hearing it. You're welcome to leave a comment in the 168 00:08:08,120 --> 00:08:10,800 Speaker 1: Facebook group telling telling us your side of the story, 169 00:08:10,880 --> 00:08:13,520 Speaker 1: what you think, why, what you think the approach would be. 170 00:08:13,560 --> 00:08:14,960 Speaker 1: We'd love to hear that. Or reach out to us 171 00:08:15,040 --> 00:08:17,520 Speaker 1: via email. You can always Our inbox is always open. 172 00:08:17,560 --> 00:08:19,280 Speaker 1: It's how to money pod at gmail dot com. You 173 00:08:19,320 --> 00:08:21,200 Speaker 1: read them all, yep. And let's talk about investing for 174 00:08:21,240 --> 00:08:24,600 Speaker 1: a second, at specifically how Warren Buffett invests are good. 175 00:08:24,680 --> 00:08:27,920 Speaker 1: Pal Warren, he uh the oracle of Omaha. That dude, 176 00:08:27,960 --> 00:08:29,640 Speaker 1: he's he. I hope I'm as sharp as he is 177 00:08:29,680 --> 00:08:31,880 Speaker 1: when I'm that old, You know what, Seriously, I don't 178 00:08:31,920 --> 00:08:34,080 Speaker 1: wish I was as sharp as he is right now, 179 00:08:36,280 --> 00:08:39,760 Speaker 1: I'm thirty eight. Like he's smarter than me. He's more 180 00:08:39,760 --> 00:08:42,040 Speaker 1: on the ball than I am, which to my great chain. 181 00:08:42,280 --> 00:08:46,000 Speaker 1: But he just hosted the Berkshire Hathaway Annual Shareholders Meeting, 182 00:08:46,120 --> 00:08:48,319 Speaker 1: which is a pretty epic event for folks who invest 183 00:08:48,679 --> 00:08:51,800 Speaker 1: in the company, and so, yeah, buffet loyalists. They flocked 184 00:08:51,800 --> 00:08:54,600 Speaker 1: to Omaha to hear what he's got to say firsthand, 185 00:08:54,640 --> 00:08:57,719 Speaker 1: to sit at his feet, and just by osmosis get 186 00:08:57,760 --> 00:09:00,200 Speaker 1: more intelligent. But I've been following some of the the 187 00:09:00,240 --> 00:09:03,880 Speaker 1: goings on Matt, just remotely, watching some of the videos 188 00:09:03,920 --> 00:09:06,319 Speaker 1: that that have come out from that meeting, And one 189 00:09:06,360 --> 00:09:08,600 Speaker 1: of the things I would say that impresses me the 190 00:09:08,640 --> 00:09:12,360 Speaker 1: most is that Warren he's still making investments based on 191 00:09:12,400 --> 00:09:14,640 Speaker 1: a twenty year timeline, even at the age of ninety one. 192 00:09:14,880 --> 00:09:17,640 Speaker 1: He's still talking about some of the stock purchases they 193 00:09:17,679 --> 00:09:20,360 Speaker 1: made earlier this year, and he's talking about a twenty 194 00:09:20,400 --> 00:09:24,480 Speaker 1: year time horizon. And I just found Yeah, and you 195 00:09:24,480 --> 00:09:26,680 Speaker 1: know what, in all likelihood, Sorry, Warren, I don't wish 196 00:09:26,679 --> 00:09:28,959 Speaker 1: this on you, but he probably doesn't have a twenty 197 00:09:29,000 --> 00:09:30,920 Speaker 1: year time horizon left in his wife. He's not gonna 198 00:09:30,920 --> 00:09:32,800 Speaker 1: be around for another couple of decades. I mean, unless 199 00:09:32,800 --> 00:09:36,400 Speaker 1: those sausage basicuits from McDonald's are some sort of preservative um. 200 00:09:36,440 --> 00:09:38,800 Speaker 1: You know, maybe he's got a shot, but it's how 201 00:09:38,800 --> 00:09:41,680 Speaker 1: he does it a secret, I guess so. But I 202 00:09:41,720 --> 00:09:44,520 Speaker 1: love that he's not wavering on his belief that investors 203 00:09:44,520 --> 00:09:47,160 Speaker 1: have to think across decades, not just months or years. 204 00:09:47,400 --> 00:09:49,360 Speaker 1: I think it's so cool. He's such a good example 205 00:09:49,720 --> 00:09:52,480 Speaker 1: for long term investors everywhere, and it's just a good 206 00:09:52,520 --> 00:09:55,040 Speaker 1: reminder for the rest of us. It's easy to start 207 00:09:55,120 --> 00:09:57,439 Speaker 1: thinking short term. It's easy to start seeing what's happened 208 00:09:57,640 --> 00:10:01,319 Speaker 1: since the beginning of this year to our stock portfolios, 209 00:10:01,440 --> 00:10:03,960 Speaker 1: to our four oh one case and start to become dismayed. 210 00:10:04,240 --> 00:10:06,679 Speaker 1: But if we put on our warm buffet caps, it's 211 00:10:06,720 --> 00:10:09,240 Speaker 1: going to allow us to weather that storm and be like, 212 00:10:09,280 --> 00:10:11,320 Speaker 1: oh wait, oh, this is what happened in the last 213 00:10:11,320 --> 00:10:14,439 Speaker 1: five months means nothing because our timeline is not based 214 00:10:14,480 --> 00:10:16,600 Speaker 1: on that in any way. Former fashion, I don't even 215 00:10:16,679 --> 00:10:19,160 Speaker 1: care that the stock market dropped three in one day 216 00:10:19,240 --> 00:10:22,320 Speaker 1: this week. That has no bearing all my life whatsoever. 217 00:10:22,520 --> 00:10:24,200 Speaker 1: What's crazy is that if you look at the Berkshire 218 00:10:24,200 --> 00:10:27,320 Speaker 1: Hathaway stock, it's actually done the opposite of what then 219 00:10:27,960 --> 00:10:30,120 Speaker 1: it's gone the opposite direction of Netflix and all of 220 00:10:30,160 --> 00:10:34,080 Speaker 1: the other pandemic. Darling's something else I saw that Let's 221 00:10:34,080 --> 00:10:36,560 Speaker 1: stuck out to me at this year's meeting is when 222 00:10:36,559 --> 00:10:39,040 Speaker 1: Warren he said that he wouldn't buy all of the 223 00:10:39,040 --> 00:10:41,839 Speaker 1: bitcoin in the world for five bucks, what would you 224 00:10:41,880 --> 00:10:45,360 Speaker 1: do it for twenty And his reasoning is because bitcoin 225 00:10:45,440 --> 00:10:48,800 Speaker 1: doesn't produce anything. And this goes counter to how it 226 00:10:48,880 --> 00:10:51,839 Speaker 1: is that the buffet and that's what I'll call him. Uh, 227 00:10:52,160 --> 00:10:54,680 Speaker 1: it goes counter to how he invests. So for instance, 228 00:10:54,679 --> 00:10:58,760 Speaker 1: owning farmland or apartments, they generate income because they are useful, 229 00:10:59,280 --> 00:11:01,760 Speaker 1: those are set is, those are companies that provide value, 230 00:11:01,920 --> 00:11:04,400 Speaker 1: and that is how he invests. And so we're not haters. 231 00:11:04,440 --> 00:11:06,800 Speaker 1: We're not crypto haters to the extent that warrant is. 232 00:11:06,800 --> 00:11:10,160 Speaker 1: We think that there's a chance that digital currencies, that cryptocurrencies, 233 00:11:10,520 --> 00:11:13,880 Speaker 1: might gain traction as a meaningful medium of exchange in 234 00:11:13,880 --> 00:11:16,600 Speaker 1: the future. But we do think that the vast majority 235 00:11:16,679 --> 00:11:20,000 Speaker 1: of your investments should be an income producing assets. We've 236 00:11:20,000 --> 00:11:23,320 Speaker 1: been consistent when it comes to the amount of more 237 00:11:23,360 --> 00:11:26,240 Speaker 1: speculative assets that you should be invested in. Five percent. 238 00:11:26,360 --> 00:11:28,200 Speaker 1: If you want to put up to five percent of 239 00:11:28,280 --> 00:11:31,480 Speaker 1: your overall portfolio within crypto, if you want to invest 240 00:11:31,480 --> 00:11:34,240 Speaker 1: in individuals, companies, individual stocks that might be a little 241 00:11:34,240 --> 00:11:37,160 Speaker 1: more volatile, we're okay with that up to five percent. 242 00:11:37,360 --> 00:11:40,000 Speaker 1: Beyond that, we want the remaining to be invested in 243 00:11:40,040 --> 00:11:42,440 Speaker 1: the in the total stock market, to where you don't 244 00:11:42,440 --> 00:11:45,280 Speaker 1: have to worry about the fluctuations of a given company. 245 00:11:45,520 --> 00:11:48,160 Speaker 1: You want to be broadly invested in the entire index, 246 00:11:48,440 --> 00:11:50,320 Speaker 1: and that's going to be an index that includes companies 247 00:11:50,360 --> 00:11:53,840 Speaker 1: that sell innovative goods and services. Or you can invest 248 00:11:53,880 --> 00:11:57,160 Speaker 1: in real estate that produces food, so farmland or you know, 249 00:11:57,200 --> 00:11:59,240 Speaker 1: other forms of real estate that provide a roof over 250 00:11:59,280 --> 00:12:02,640 Speaker 1: someone's head. There is utility there, It is useful generally speaking. 251 00:12:02,640 --> 00:12:04,600 Speaker 1: That's how we went to see the majority of your 252 00:12:04,640 --> 00:12:09,439 Speaker 1: portfolio invested there. There's basically next to zero chance that 253 00:12:09,480 --> 00:12:13,800 Speaker 1: your home is worth zero dollars tomorrow, right unless but 254 00:12:13,800 --> 00:12:16,000 Speaker 1: there's like at that's what's going to happen to a 255 00:12:16,000 --> 00:12:19,400 Speaker 1: big right right. So, I mean it's a heck of 256 00:12:19,440 --> 00:12:22,800 Speaker 1: a lot more likely that that that that occurs because 257 00:12:22,840 --> 00:12:25,120 Speaker 1: people will always need a place to live. And when 258 00:12:25,160 --> 00:12:27,880 Speaker 1: I said next to zero percent chance, what I mean 259 00:12:28,000 --> 00:12:30,079 Speaker 1: is the only way that happens is if like the 260 00:12:30,160 --> 00:12:33,800 Speaker 1: nuclear apocalypse happens, right that, and that's when just none 261 00:12:33,840 --> 00:12:35,720 Speaker 1: of us have any shelters, blah blah blah blah blah. 262 00:12:35,720 --> 00:12:37,679 Speaker 1: That's like worst case scenario, but isn't worth any I 263 00:12:37,720 --> 00:12:40,400 Speaker 1: can see a lot of other scenarios in which bitcoin 264 00:12:40,480 --> 00:12:43,880 Speaker 1: becomes basically worthless, and so yeah, I gotta agree with 265 00:12:43,920 --> 00:12:47,199 Speaker 1: Papa Buffett on that one. Well, while we're on the subject, 266 00:12:47,320 --> 00:12:51,040 Speaker 1: Matt of our investments outliving us, let's talk about how 267 00:12:51,240 --> 00:12:55,720 Speaker 1: the realization of our own mortality actually leads to increased spending. 268 00:12:56,080 --> 00:12:58,360 Speaker 1: So it's kind of an interesting topic. There was an 269 00:12:58,400 --> 00:13:02,440 Speaker 1: academic paper from the University of Mannheim and they just 270 00:13:02,480 --> 00:13:04,600 Speaker 1: wrote about this very subject, and I felt like we 271 00:13:04,600 --> 00:13:06,800 Speaker 1: should cover it here on how the money. Yeah, it's 272 00:13:06,840 --> 00:13:08,480 Speaker 1: it's our I think if it as our solemn duty 273 00:13:08,520 --> 00:13:10,880 Speaker 1: as money nerds to talk about these complex issues of 274 00:13:10,920 --> 00:13:13,880 Speaker 1: money and mortality at the same time. And it's kind 275 00:13:13,880 --> 00:13:15,319 Speaker 1: of the intersection of the kind of stuff we like 276 00:13:15,360 --> 00:13:18,280 Speaker 1: to talk about, you know, like mortality, happiness, money. Like, 277 00:13:18,559 --> 00:13:20,640 Speaker 1: we don't just like talking about money in and of itself. 278 00:13:20,720 --> 00:13:23,080 Speaker 1: There are other bigger questions that we try to get 279 00:13:23,080 --> 00:13:25,600 Speaker 1: you to think about, exactly, because money like dying, money 280 00:13:25,720 --> 00:13:28,840 Speaker 1: of itself that doesn't matter if you're dead, right, And 281 00:13:28,880 --> 00:13:31,960 Speaker 1: so primarily what this paper found is that the death 282 00:13:32,000 --> 00:13:34,880 Speaker 1: of a close friend actually leads to lower savings right 283 00:13:34,920 --> 00:13:37,480 Speaker 1: for years to come. So if you're if you're blindsided 284 00:13:37,520 --> 00:13:39,839 Speaker 1: by the sudden death of a loved one, you're more 285 00:13:39,880 --> 00:13:42,720 Speaker 1: likely to partake in what we're going to call grief spending. 286 00:13:42,760 --> 00:13:44,800 Speaker 1: The paper didn't refer to it as this, but I 287 00:13:44,800 --> 00:13:46,480 Speaker 1: think that's a good way to to think about it. 288 00:13:46,520 --> 00:13:49,200 Speaker 1: Is that you've gone through a traumatic event and you're 289 00:13:49,200 --> 00:13:52,120 Speaker 1: experiencing grief, and how do you deal with that. Well, 290 00:13:52,320 --> 00:13:53,840 Speaker 1: a lot of folks tend to spend more, and the 291 00:13:53,840 --> 00:13:57,040 Speaker 1: typical savings rate drops somewhere between one point one and 292 00:13:57,080 --> 00:13:59,640 Speaker 1: one point seven percent, And it just made me think 293 00:13:59,640 --> 00:14:02,040 Speaker 1: about what what does this tell us? Well, I think 294 00:14:02,080 --> 00:14:05,800 Speaker 1: it tells us that our emotions definitely influence our financial habits. 295 00:14:06,160 --> 00:14:08,439 Speaker 1: We all know this, right, but it's just an important 296 00:14:08,480 --> 00:14:11,760 Speaker 1: reminder because the more we're aware of our emotions, the 297 00:14:11,800 --> 00:14:14,840 Speaker 1: more control we're likely to have over our response, the 298 00:14:14,880 --> 00:14:16,960 Speaker 1: more we're gonna be able to to change how we 299 00:14:17,040 --> 00:14:19,960 Speaker 1: respond in the middle of a difficult situation. And I 300 00:14:19,960 --> 00:14:22,840 Speaker 1: guess we can also use a little more stoicism in 301 00:14:22,840 --> 00:14:25,120 Speaker 1: our lives, all of us, you know, maybe getting a 302 00:14:25,160 --> 00:14:28,200 Speaker 1: momento more e coin Have you seen those I have? Yeah, 303 00:14:28,200 --> 00:14:30,880 Speaker 1: and some people look at them every day, and it's 304 00:14:30,920 --> 00:14:32,760 Speaker 1: just a reminder that life is leading you can You 305 00:14:32,760 --> 00:14:36,000 Speaker 1: can do this in so many different ways, but contemplating 306 00:14:36,000 --> 00:14:40,720 Speaker 1: our eventual reality, the the end of our living existence 307 00:14:40,760 --> 00:14:43,400 Speaker 1: isn't morose. We we would say that it should actually 308 00:14:43,400 --> 00:14:47,600 Speaker 1: be inspiring, and it should cause you to live well today, 309 00:14:47,960 --> 00:14:50,600 Speaker 1: to enjoy the presence, to care well for the people 310 00:14:50,760 --> 00:14:53,320 Speaker 1: around you, and even to be smart with your money. 311 00:14:53,360 --> 00:14:57,320 Speaker 1: Like those are just good principles to live by, especially 312 00:14:57,320 --> 00:15:00,280 Speaker 1: in the reality that we don't live forever. I think 313 00:15:00,320 --> 00:15:02,480 Speaker 1: the downside of calling it grief spending is that it 314 00:15:02,520 --> 00:15:04,200 Speaker 1: makes it sort of sound like you broke up with 315 00:15:04,240 --> 00:15:06,080 Speaker 1: your boyfriend or your girlfriend and you're sitting there just 316 00:15:06,200 --> 00:15:08,760 Speaker 1: like eating ice cream out of a tub, where it's 317 00:15:08,760 --> 00:15:10,920 Speaker 1: like this emotional knee jerk reaction. I mean, obviously it's 318 00:15:10,920 --> 00:15:14,280 Speaker 1: a big deal to lose friend, and I get that, 319 00:15:14,320 --> 00:15:16,160 Speaker 1: but I think the way I see it is that 320 00:15:16,200 --> 00:15:20,000 Speaker 1: it's almost more of a reprioritization of what it is 321 00:15:20,040 --> 00:15:22,760 Speaker 1: that you value. And when you could easily go down 322 00:15:22,760 --> 00:15:25,760 Speaker 1: this path of maybe hoarding money or continuing to invest 323 00:15:25,800 --> 00:15:28,800 Speaker 1: dollars for some far off future, you start to think, well, shoot, 324 00:15:28,920 --> 00:15:31,480 Speaker 1: I'm not guaranteed tomorrow. And so in my mind, I 325 00:15:31,920 --> 00:15:34,680 Speaker 1: think what I see it leading to is potentially living 326 00:15:34,680 --> 00:15:37,640 Speaker 1: a more intentional life, using some more of your dollars 327 00:15:37,640 --> 00:15:40,160 Speaker 1: now to spend on things that matter to you because 328 00:15:40,200 --> 00:15:41,760 Speaker 1: the brevity of life has just become more of a 329 00:15:41,960 --> 00:15:44,160 Speaker 1: and you've gotten to see that firsthand. But I think 330 00:15:44,160 --> 00:15:46,640 Speaker 1: another takeaway too is that you don't necessarily have to 331 00:15:46,680 --> 00:15:49,040 Speaker 1: spend like see a difference in the way that you 332 00:15:49,040 --> 00:15:51,600 Speaker 1: spend your money, but I think more effectively, you can 333 00:15:51,640 --> 00:15:53,120 Speaker 1: see a difference in how it is that you spend 334 00:15:53,120 --> 00:15:55,840 Speaker 1: your time, which is the most limited resource, right, Like, 335 00:15:55,880 --> 00:15:57,240 Speaker 1: you can always go out there, you can always earn 336 00:15:57,240 --> 00:15:59,400 Speaker 1: a little bit more money, uh, you lose some money, 337 00:15:59,520 --> 00:16:01,680 Speaker 1: you win some any whatever. But when it comes to time, 338 00:16:01,800 --> 00:16:04,560 Speaker 1: we all have very little control over the number of 339 00:16:04,600 --> 00:16:06,440 Speaker 1: days that we have left here on this earth. And 340 00:16:06,480 --> 00:16:09,320 Speaker 1: so my takeaway here is that you know, I'm sure 341 00:16:09,440 --> 00:16:11,960 Speaker 1: you might want to spend your dollars differently if someone 342 00:16:12,040 --> 00:16:15,120 Speaker 1: close to you dies, and it's causing you to reassess 343 00:16:15,520 --> 00:16:17,400 Speaker 1: how it is you spend your money. But more importantly, 344 00:16:17,440 --> 00:16:19,400 Speaker 1: I think it's how it is that we spend our time. Yeah, 345 00:16:19,400 --> 00:16:21,480 Speaker 1: I think that's a good point to Matt because it 346 00:16:21,600 --> 00:16:25,560 Speaker 1: is okay to have something hit us and realize that, wait, 347 00:16:25,600 --> 00:16:30,000 Speaker 1: I'm saving on my money every paycheck if I but 348 00:16:30,040 --> 00:16:32,560 Speaker 1: there are meaningful things I'm missing out on now because 349 00:16:32,720 --> 00:16:35,840 Speaker 1: I'm too focused on saving for the future. And and 350 00:16:35,880 --> 00:16:37,840 Speaker 1: that is a real possibility. We should actually talk about 351 00:16:37,840 --> 00:16:40,640 Speaker 1: that on an episode soon. Over saving is a real 352 00:16:40,640 --> 00:16:43,280 Speaker 1: problem for some folks, and it's yeah, it's worth a discussion. 353 00:16:43,320 --> 00:16:46,040 Speaker 1: But we've got more stories that we want to get 354 00:16:46,040 --> 00:16:48,840 Speaker 1: to on today's episode, including the FED rate hike. We 355 00:16:48,880 --> 00:16:50,680 Speaker 1: need to talk about that at least for a second, 356 00:16:50,960 --> 00:16:53,360 Speaker 1: and we're gonna mention something that can actually help make 357 00:16:53,400 --> 00:16:56,600 Speaker 1: your social media usage way better than it currently is. 358 00:16:56,640 --> 00:16:58,800 Speaker 1: We'll we'll get to those things and more right after 359 00:16:58,800 --> 00:17:09,800 Speaker 1: this break. Alright, we're back from the break. This is 360 00:17:09,800 --> 00:17:12,119 Speaker 1: our Friday flight where we're covering the different headlines and 361 00:17:12,240 --> 00:17:14,880 Speaker 1: Joel is time now to get to the ludicrous headline 362 00:17:15,040 --> 00:17:18,280 Speaker 1: of the week. Uh. This one comes from the Pew 363 00:17:18,400 --> 00:17:21,919 Speaker 1: Charitable Trust and it's several banks are charging more than 364 00:17:21,960 --> 00:17:27,040 Speaker 1: payday lenders for small loans. This is an interesting article because, 365 00:17:27,119 --> 00:17:29,639 Speaker 1: of course we're not fans of payday lenders. They're illegal 366 00:17:29,640 --> 00:17:31,960 Speaker 1: in most states. Thank goodness. And the reason is because 367 00:17:32,000 --> 00:17:35,560 Speaker 1: they charge unfathomably high interest rates in order to rip 368 00:17:35,560 --> 00:17:38,760 Speaker 1: people off who who are already in a financial mind. Yeah, 369 00:17:38,760 --> 00:17:42,200 Speaker 1: that is nefarious. But Pews Reachers shows that some banks 370 00:17:42,240 --> 00:17:45,879 Speaker 1: are actually skirting the payday lender prohibitions and they're offering 371 00:17:46,600 --> 00:17:48,720 Speaker 1: even worse loans. They're they're offering these egregious loans to 372 00:17:48,760 --> 00:17:51,439 Speaker 1: customers themselves, and the way that they're able to do 373 00:17:51,520 --> 00:17:54,159 Speaker 1: it is because of a law that allows banks to 374 00:17:54,240 --> 00:17:58,320 Speaker 1: issue loans under their own home states laws, even if 375 00:17:58,320 --> 00:18:00,520 Speaker 1: they're operating and even if they're issue doing the loan 376 00:18:00,680 --> 00:18:03,480 Speaker 1: in another state. It's a terrible practice that we're hoping 377 00:18:03,520 --> 00:18:05,920 Speaker 1: to highlight here by talking about it on the show. 378 00:18:05,960 --> 00:18:09,000 Speaker 1: But one of the loans that Pew documented was for 379 00:18:09,119 --> 00:18:13,399 Speaker 1: a car loan with interest rates. Uh. This is on 380 00:18:13,440 --> 00:18:15,200 Speaker 1: a on a car that costs like a little over 381 00:18:15,320 --> 00:18:17,400 Speaker 1: two thousand dollars. And so if you want to know 382 00:18:17,560 --> 00:18:19,600 Speaker 1: how much you'd pay in total on that vehicle when 383 00:18:19,600 --> 00:18:22,159 Speaker 1: it's when it's all said and done, more than seven 384 00:18:22,160 --> 00:18:27,200 Speaker 1: thousand dollars for a car. This is hard to fathom 385 00:18:27,560 --> 00:18:30,159 Speaker 1: and the reason why we hate these practices and we 386 00:18:30,200 --> 00:18:33,080 Speaker 1: hate these predatory lenders. Yeah, and to see that it's 387 00:18:33,119 --> 00:18:35,640 Speaker 1: not just the paid a lenders, which most people know 388 00:18:35,960 --> 00:18:38,840 Speaker 1: how they operate, but still a lot of people get 389 00:18:38,880 --> 00:18:42,320 Speaker 1: hoodwinked into loans they can't pay back, which just results 390 00:18:42,359 --> 00:18:47,080 Speaker 1: in a precipitous financial collapse. Well, the fact that banks 391 00:18:47,160 --> 00:18:49,800 Speaker 1: are doing it is just pretty awful too. Yeah. Well, 392 00:18:49,840 --> 00:18:52,520 Speaker 1: I mean basically, like these paid lenders are partnering with 393 00:18:52,680 --> 00:18:55,400 Speaker 1: the banks, they're kind of operating under you know, under 394 00:18:55,400 --> 00:18:57,920 Speaker 1: the umbrella of the bank, even though they're assuming all that. 395 00:18:58,000 --> 00:18:59,200 Speaker 1: What do they call them in that in the Pew 396 00:18:59,240 --> 00:19:02,360 Speaker 1: study was was like pseudo banks or something something like that. 397 00:19:02,640 --> 00:19:05,480 Speaker 1: But using loopholes to screw people over is obviously a 398 00:19:05,560 --> 00:19:07,480 Speaker 1: terrible thing to do. But what we would say is 399 00:19:07,480 --> 00:19:11,000 Speaker 1: to just watch your back and specifically don't forget about 400 00:19:11,040 --> 00:19:15,280 Speaker 1: credit unions when you're borrowing, specifically for small needs. Having 401 00:19:15,320 --> 00:19:18,040 Speaker 1: a great relationship with your credit union can save you 402 00:19:18,119 --> 00:19:20,120 Speaker 1: a ton of money through the years. They don't play 403 00:19:20,119 --> 00:19:23,600 Speaker 1: games like this because their nonprofits owned by the members 404 00:19:23,680 --> 00:19:26,879 Speaker 1: of that credit union. And it makes me think of 405 00:19:26,920 --> 00:19:30,879 Speaker 1: Actually another article I saw in Wired about folks who 406 00:19:30,920 --> 00:19:33,760 Speaker 1: are trading their data in order to access their paycheck 407 00:19:33,800 --> 00:19:37,440 Speaker 1: early via apps. Like B nine and we're not fans 408 00:19:37,480 --> 00:19:39,920 Speaker 1: of this either. There's so many things out there, like 409 00:19:40,160 --> 00:19:42,600 Speaker 1: consumers have to look out for, um some of these 410 00:19:42,640 --> 00:19:45,320 Speaker 1: some of these apps they don't charge fees, but others 411 00:19:45,359 --> 00:19:47,119 Speaker 1: do require some sort of monthly maintenance for you have 412 00:19:47,160 --> 00:19:49,639 Speaker 1: like ten bucks and then some some of these apps 413 00:19:49,640 --> 00:19:52,159 Speaker 1: are asking for tips to support their ability to function. 414 00:19:52,480 --> 00:19:55,639 Speaker 1: But way worse than that is the data they collect 415 00:19:55,640 --> 00:19:58,400 Speaker 1: on you. Because all the information you have to fork over. 416 00:19:58,760 --> 00:20:01,080 Speaker 1: Some of these companies matt have a hundred and forty 417 00:20:01,160 --> 00:20:03,360 Speaker 1: print data points on the borrowers that they're working with. 418 00:20:03,440 --> 00:20:06,479 Speaker 1: It's crazy. And these apps are making huge money on 419 00:20:06,560 --> 00:20:08,800 Speaker 1: your detailed personal information. So you might say, well, it's 420 00:20:08,800 --> 00:20:11,080 Speaker 1: not a nine interest rate, but I do have to 421 00:20:11,119 --> 00:20:13,639 Speaker 1: basically tell them everything about me. Well that's not a 422 00:20:13,640 --> 00:20:15,880 Speaker 1: good trade off either. And they do know so much 423 00:20:15,920 --> 00:20:18,479 Speaker 1: about you because you log in with your the payroll 424 00:20:18,520 --> 00:20:21,680 Speaker 1: software's log in, which means they have access to any 425 00:20:21,760 --> 00:20:24,680 Speaker 1: bit of information that is recorded there by your employer 426 00:20:24,800 --> 00:20:26,399 Speaker 1: and so and then so the question is then what 427 00:20:26,400 --> 00:20:28,199 Speaker 1: do they do with that data? Well, they use that 428 00:20:28,520 --> 00:20:31,600 Speaker 1: to figure out how to market additional financial products to you. 429 00:20:31,680 --> 00:20:34,199 Speaker 1: And these are products that are going to be highly 430 00:20:34,240 --> 00:20:36,520 Speaker 1: targeted to how it is that you spend your money. 431 00:20:36,520 --> 00:20:38,199 Speaker 1: It's gonna be highly targeted to how much you make, 432 00:20:38,240 --> 00:20:41,680 Speaker 1: how much you put aside towards retirement. Even information like 433 00:20:41,680 --> 00:20:43,320 Speaker 1: like your performance at work, whether or not you show 434 00:20:43,359 --> 00:20:45,399 Speaker 1: up on time, are all little bits of data that 435 00:20:45,440 --> 00:20:48,520 Speaker 1: they're able to glean because you've logged in with your 436 00:20:48,520 --> 00:20:52,080 Speaker 1: employer's payroll software. Uh Joel. Speaking of exorbitant interest rates, 437 00:20:52,119 --> 00:20:55,000 Speaker 1: let's talk about the FEDS announcement this week that is 438 00:20:55,040 --> 00:20:57,960 Speaker 1: raising interest rates by a half a percent. This is 439 00:20:58,000 --> 00:21:00,680 Speaker 1: something we were all expecting. They definitely a telegraph that 440 00:21:00,760 --> 00:21:02,919 Speaker 1: this was happening. But ultimately, what this means for all 441 00:21:02,960 --> 00:21:05,160 Speaker 1: of us is that it's going to be more expensive 442 00:21:05,200 --> 00:21:08,560 Speaker 1: to borrow money. The interest that you pay on personal loans, 443 00:21:08,600 --> 00:21:10,840 Speaker 1: on credit cards, on car loans, all of which we 444 00:21:10,840 --> 00:21:13,679 Speaker 1: would rather you not have, by the way, but those 445 00:21:13,720 --> 00:21:15,680 Speaker 1: costs are going to be going up. And the same 446 00:21:15,680 --> 00:21:18,000 Speaker 1: thing is actually true when it comes to mortgages, although 447 00:21:18,160 --> 00:21:21,560 Speaker 1: there are many other factors that determine mortgage interest rates, 448 00:21:21,840 --> 00:21:24,719 Speaker 1: but we've already seen the uptick there as well. So 449 00:21:24,760 --> 00:21:27,560 Speaker 1: that's all the bad news. But the good news is 450 00:21:27,680 --> 00:21:29,359 Speaker 1: that we might finally you know, let's we gotta get 451 00:21:29,400 --> 00:21:31,240 Speaker 1: a little silver lining here. Now. The good news is 452 00:21:31,320 --> 00:21:34,480 Speaker 1: we might actually see some banks paying a decent interest rate. 453 00:21:34,680 --> 00:21:37,840 Speaker 1: High interest savings accounts. They've been pegged basically at like 454 00:21:37,880 --> 00:21:41,000 Speaker 1: half a percent for years now, and we're starting to 455 00:21:41,000 --> 00:21:42,960 Speaker 1: see some of them creep up a little bit. There's 456 00:21:43,000 --> 00:21:44,760 Speaker 1: a lot of them that are now offering point six 457 00:21:44,960 --> 00:21:48,600 Speaker 1: point seven percent. Happy to day, we're not going to 458 00:21:48,680 --> 00:21:52,160 Speaker 1: see an overnight shift because Americans do have a lot 459 00:21:52,160 --> 00:21:55,719 Speaker 1: of savings on hand, but as we've seen, the personal 460 00:21:55,760 --> 00:21:59,000 Speaker 1: savings rate has declined significantly, and so I would not 461 00:21:59,080 --> 00:22:02,840 Speaker 1: be surprised if high interest savings accounts start to offer 462 00:22:03,240 --> 00:22:06,119 Speaker 1: rates in the one percent range or even higher in 463 00:22:06,160 --> 00:22:08,479 Speaker 1: the coming weeks and months. So pretty soon it might 464 00:22:08,480 --> 00:22:11,080 Speaker 1: be cool to be a saver again. Well, I wouldn't 465 00:22:11,080 --> 00:22:13,080 Speaker 1: necessarily bank on it, but man, I hope you're right. 466 00:22:13,119 --> 00:22:15,200 Speaker 1: I hope to see that because it's gonna happen. Savers 467 00:22:15,240 --> 00:22:18,479 Speaker 1: have been getting screwed for years now. So let's talk 468 00:22:18,480 --> 00:22:20,600 Speaker 1: about credit reports for a second. We've talked about the 469 00:22:20,960 --> 00:22:24,600 Speaker 1: changing nature of how medical bills are going to affect 470 00:22:24,720 --> 00:22:27,639 Speaker 1: your credit score and and how they get reported to 471 00:22:27,640 --> 00:22:31,760 Speaker 1: your credit report. Moving forward. Well of medical debt that 472 00:22:31,880 --> 00:22:35,000 Speaker 1: currently appears on credit reports is going to be removed 473 00:22:35,000 --> 00:22:37,720 Speaker 1: in the coming six to twelve months. And that's because 474 00:22:37,800 --> 00:22:40,480 Speaker 1: medical bills that have been paid in full, as well 475 00:22:40,480 --> 00:22:43,200 Speaker 1: as bills of less than five bucks where they're they're 476 00:22:43,200 --> 00:22:44,960 Speaker 1: not going to be able to affect your credit score 477 00:22:45,320 --> 00:22:49,040 Speaker 1: at all moving forward. That's thanks to some recent changes 478 00:22:49,080 --> 00:22:51,199 Speaker 1: made by the bureaus. Matt we talked about this not 479 00:22:51,280 --> 00:22:55,000 Speaker 1: too long ago, but there was another interesting report from 480 00:22:55,200 --> 00:22:59,359 Speaker 1: the c FPB this week. The Consumer Financial Protection Bureau 481 00:22:59,480 --> 00:23:04,000 Speaker 1: about fraudulent medical bills, and based on hundreds of thousands 482 00:23:04,040 --> 00:23:07,240 Speaker 1: of complaints the CFPB receives on its website each year, 483 00:23:07,560 --> 00:23:11,080 Speaker 1: they can detect pretty important trends that are causing harm 484 00:23:11,119 --> 00:23:13,879 Speaker 1: to consumers, and two of the biggest complaints, according to 485 00:23:13,920 --> 00:23:19,040 Speaker 1: their recent bulletin, are collections agencies contacting folks about debts 486 00:23:19,080 --> 00:23:22,719 Speaker 1: that have already been paid and harassing people about bills 487 00:23:22,920 --> 00:23:25,880 Speaker 1: that aren't even their's to begin with. These are both 488 00:23:25,920 --> 00:23:28,240 Speaker 1: major issues that really need to be addressed. Some of 489 00:23:28,280 --> 00:23:31,120 Speaker 1: these folks have basically said I paid the bill because 490 00:23:31,119 --> 00:23:32,679 Speaker 1: I wasn't sure what else to do, so they were 491 00:23:32,680 --> 00:23:34,440 Speaker 1: paying a bill that wasn't theirs or that was made 492 00:23:34,480 --> 00:23:36,440 Speaker 1: up to begin with a bogus bill. I'd like to 493 00:23:36,440 --> 00:23:39,960 Speaker 1: see the CFPB crackdown on this sort of behavior. Yeah. 494 00:23:40,000 --> 00:23:44,000 Speaker 1: Another alarming trend in the debt collection space is when consumers, 495 00:23:44,000 --> 00:23:47,360 Speaker 1: when they're not even contacted, but then there's this erroneous 496 00:23:47,440 --> 00:23:50,280 Speaker 1: debt on their credit report. Many folks don't even realize. 497 00:23:50,320 --> 00:23:52,240 Speaker 1: They don't even find out about these bad debts until 498 00:23:52,320 --> 00:23:54,879 Speaker 1: they are applying for like like a mortgage or a 499 00:23:54,880 --> 00:23:57,520 Speaker 1: car loan, and they realize that their scores and the dumps, 500 00:23:57,720 --> 00:24:00,160 Speaker 1: so they pulled their credit report. They realize what's happened. 501 00:24:00,560 --> 00:24:04,160 Speaker 1: And you know, since challenging incorrect items on your credit 502 00:24:04,160 --> 00:24:07,040 Speaker 1: report rarely works the credit bureaus. They're busy with other 503 00:24:07,040 --> 00:24:09,879 Speaker 1: more important things. I guess, yeah, very important people over 504 00:24:09,920 --> 00:24:12,320 Speaker 1: there at the credit bureaus, Matt. But some folks feel 505 00:24:12,480 --> 00:24:14,960 Speaker 1: that the only course of action is to go ahead 506 00:24:15,000 --> 00:24:16,919 Speaker 1: and pay a bill that they don't even know, like 507 00:24:16,920 --> 00:24:19,240 Speaker 1: you mentioned, Joel. And so you know, I know that 508 00:24:19,400 --> 00:24:24,120 Speaker 1: the credit bureau bureaucracy, which is maybe aptly named uh 509 00:24:24,240 --> 00:24:26,440 Speaker 1: then it can get you down. But we don't want 510 00:24:26,520 --> 00:24:28,240 Speaker 1: you to pay debts that you don't know. And and 511 00:24:28,280 --> 00:24:30,560 Speaker 1: don't let the bureaus take advantage of you by allowing 512 00:24:30,640 --> 00:24:33,479 Speaker 1: things on your credit report that don't belong there. Instead, 513 00:24:33,600 --> 00:24:35,840 Speaker 1: we want you to file a dispute with the specific 514 00:24:35,840 --> 00:24:38,560 Speaker 1: bureau where you see the error, keep pressing for a fix, 515 00:24:38,800 --> 00:24:41,080 Speaker 1: and if you don't hear from the actual bureau, make 516 00:24:41,119 --> 00:24:44,200 Speaker 1: sure to report them to the CFPB. Will make sure 517 00:24:44,280 --> 00:24:46,160 Speaker 1: to leave a link where you can file a complaint 518 00:24:46,160 --> 00:24:48,360 Speaker 1: with the CFPB in the show notes. That's right, it's 519 00:24:48,359 --> 00:24:50,840 Speaker 1: a consumer finance dock go. We'll put the link there too, though. 520 00:24:51,200 --> 00:24:52,880 Speaker 1: And I'm at last story of the day. This one 521 00:24:53,080 --> 00:24:56,520 Speaker 1: is about social media. And there was an article in 522 00:24:56,560 --> 00:24:59,960 Speaker 1: the Atlantic last week basically saying that there was only 523 00:25:00,080 --> 00:25:03,280 Speaker 1: one reason to use Facebook anymore. And I instinctively I 524 00:25:03,320 --> 00:25:05,640 Speaker 1: knew what it was. What's the only reason to use Facebook? Math? 525 00:25:05,720 --> 00:25:08,600 Speaker 1: This is gonna be a Facebook group plug? That's right? Well, really, 526 00:25:08,600 --> 00:25:10,240 Speaker 1: when you go I when I go on Facebook, now, 527 00:25:10,880 --> 00:25:13,520 Speaker 1: it's it feels that the marketplace. It feels like either 528 00:25:13,560 --> 00:25:16,120 Speaker 1: a waste of time, Yeah, the marketplace. That's actually okay. 529 00:25:16,160 --> 00:25:17,879 Speaker 1: The two good things about Facebook other than that it's 530 00:25:17,880 --> 00:25:19,639 Speaker 1: a black hole of death. You're a group's guy on 531 00:25:19,720 --> 00:25:23,400 Speaker 1: the marketplace, Yes, so so basically Facebook Groups, we we've 532 00:25:23,400 --> 00:25:25,320 Speaker 1: been saying that they're actually one of the bright spots 533 00:25:25,359 --> 00:25:27,520 Speaker 1: on the Internet for a long period of time. The 534 00:25:27,560 --> 00:25:30,720 Speaker 1: rest of the site besides marketplaces. Maybe it could, it 535 00:25:30,720 --> 00:25:32,760 Speaker 1: could blow up completely and I don't think we would 536 00:25:32,800 --> 00:25:35,919 Speaker 1: even notice. But Facebook Groups can actually be just this 537 00:25:36,040 --> 00:25:38,920 Speaker 1: lovely place to spend a bit of time with folks 538 00:25:39,240 --> 00:25:42,480 Speaker 1: who live across the nation and across the globe and 539 00:25:42,640 --> 00:25:45,600 Speaker 1: they have similar interests that you do. But here's the thing. 540 00:25:45,880 --> 00:25:48,320 Speaker 1: Facebook has all these other temptations when you log on, 541 00:25:48,359 --> 00:25:50,960 Speaker 1: and so it's hard to only use the tools that 542 00:25:51,480 --> 00:25:54,000 Speaker 1: you like. So I just want to give a tip 543 00:25:54,000 --> 00:25:56,120 Speaker 1: to everybody out there. What I've done is installed something 544 00:25:56,119 --> 00:25:59,080 Speaker 1: called the news feed eradicator plug in. It works on 545 00:25:59,160 --> 00:26:01,439 Speaker 1: Google Chrome. I'll linked to that in the show notes too. 546 00:26:01,560 --> 00:26:03,680 Speaker 1: And the way the news feed eradicator plug in works 547 00:26:03,680 --> 00:26:05,120 Speaker 1: is basically, when you log in, you don't see any 548 00:26:05,119 --> 00:26:06,920 Speaker 1: news feed at all. You just see like some sort 549 00:26:06,960 --> 00:26:10,200 Speaker 1: of stoic style quote, uh telling you that, yeah, you 550 00:26:10,240 --> 00:26:11,720 Speaker 1: should get back to work. Yeah it's a little quote 551 00:26:11,720 --> 00:26:13,560 Speaker 1: on there as opposed to the news feed, and it's like, oh, yeah, 552 00:26:13,560 --> 00:26:15,800 Speaker 1: I should be more mindful with my time and so 553 00:26:16,080 --> 00:26:18,400 Speaker 1: then you either hop over to marketplace or you hop 554 00:26:18,400 --> 00:26:20,440 Speaker 1: over the groups and you can see your stuff there, 555 00:26:20,720 --> 00:26:22,399 Speaker 1: but you're you're at least don't have to look at 556 00:26:22,400 --> 00:26:24,600 Speaker 1: any of that news feed, which can quickly suck you 557 00:26:24,640 --> 00:26:27,720 Speaker 1: into a time warp or something I like doing. I'm 558 00:26:27,720 --> 00:26:29,800 Speaker 1: a big fan of bookmarks. I don't know how many 559 00:26:29,800 --> 00:26:32,919 Speaker 1: people actually like doing bookmarks. I organize all my my 560 00:26:33,000 --> 00:26:36,240 Speaker 1: online browsing typically with bookmarks within my favorite bar or whatever. 561 00:26:36,359 --> 00:26:39,480 Speaker 1: But you can bookmark just the how to money Facebook group. 562 00:26:39,520 --> 00:26:41,280 Speaker 1: And so if you just want to go straight to 563 00:26:41,280 --> 00:26:45,320 Speaker 1: the source without even messing with the stoic quote, maybe 564 00:26:45,640 --> 00:26:49,480 Speaker 1: you yourself are not interested in your appending death with 565 00:26:49,520 --> 00:26:52,960 Speaker 1: mortality looming over the horizon, that's an option as well. Yeah, 566 00:26:53,200 --> 00:26:56,680 Speaker 1: bookmarks are another good solution for sure, But yeah, either 567 00:26:56,720 --> 00:26:59,680 Speaker 1: way you slice it, groups rock, and they're they're really 568 00:26:59,720 --> 00:27:02,080 Speaker 1: one of the only good things about the Internet these days. 569 00:27:02,119 --> 00:27:05,720 Speaker 1: The final bastion of discourse on the Internet, yeah, is 570 00:27:05,720 --> 00:27:08,119 Speaker 1: within moderated groups. Twitter. Twitter has been a mess for 571 00:27:08,160 --> 00:27:10,000 Speaker 1: a while, facebooks a mess. I mean, all these social 572 00:27:10,040 --> 00:27:11,879 Speaker 1: media sites, really, they have us pitted against each other, 573 00:27:11,960 --> 00:27:13,880 Speaker 1: and and groups are one of these like places where 574 00:27:13,880 --> 00:27:16,600 Speaker 1: people actually have decent conversations and help each other, and 575 00:27:16,640 --> 00:27:18,680 Speaker 1: so it's kind of nice, like that's what I hoped 576 00:27:18,760 --> 00:27:21,760 Speaker 1: the Internet would be alas it's only a small corner 577 00:27:21,800 --> 00:27:25,119 Speaker 1: of the Internet, but that's gonna do it for this episode. 578 00:27:25,280 --> 00:27:27,080 Speaker 1: For folks who want the show notes, just go to 579 00:27:27,080 --> 00:27:29,040 Speaker 1: our website at how to money dot com. They'll be 580 00:27:29,080 --> 00:27:31,520 Speaker 1: up there for you. There, that's right. We hope everyone 581 00:27:31,560 --> 00:27:35,120 Speaker 1: has a great weekend. Don't forget Mother's Day. It's this Sunday, 582 00:27:35,400 --> 00:27:36,639 Speaker 1: uh and we hope you have a good one. We 583 00:27:36,680 --> 00:27:39,200 Speaker 1: will see you back here on Monday. Until next time, Joel, 584 00:27:39,359 --> 00:27:41,120 Speaker 1: best Friends Out, Best Friends Out,