1 00:00:00,080 --> 00:00:03,000 Speaker 1: Welcome to had to Money. I'm Joel and I am 2 00:00:03,120 --> 00:00:24,800 Speaker 1: match and today we're answering your listener questions. Man, let's 3 00:00:24,800 --> 00:00:26,920 Speaker 1: give it up for Joel, because I guess we both 4 00:00:26,920 --> 00:00:29,360 Speaker 1: thought that over the weekend you would be able to 5 00:00:29,440 --> 00:00:31,960 Speaker 1: rest up a little bit, be in a better condition. 6 00:00:32,000 --> 00:00:34,600 Speaker 1: But the voice is still sounding rough. You're pushing through though, 7 00:00:34,840 --> 00:00:37,800 Speaker 1: I'm thinking you're a You're a soldier over there for 8 00:00:37,800 --> 00:00:39,720 Speaker 1: the sake of personal finance. Remember that one guy who 9 00:00:39,720 --> 00:00:41,320 Speaker 1: played with like a broken leg in the super Bowl. 10 00:00:41,640 --> 00:00:43,239 Speaker 1: That's what I feel like right now. That's what I 11 00:00:43,240 --> 00:00:46,560 Speaker 1: feel like. This is that version of podcasting. It's actually 12 00:00:46,640 --> 00:00:50,080 Speaker 1: nothing close to that. I was gonna let you say 13 00:00:50,120 --> 00:00:52,440 Speaker 1: that I don't think that highly of myself, but yeah, 14 00:00:52,520 --> 00:00:55,040 Speaker 1: well you are. I mean, you're you're dialing it up 15 00:00:55,080 --> 00:00:57,640 Speaker 1: a little bit here for the actual recording. But yeah, dude, 16 00:00:57,680 --> 00:01:00,120 Speaker 1: you've been you've been in rough shape. So let's it's 17 00:01:00,120 --> 00:01:03,480 Speaker 1: beause this bad boy recorded. Get you home, maybe get 18 00:01:03,480 --> 00:01:05,520 Speaker 1: yourself a little nap this afternoon. There we go, all right, 19 00:01:05,520 --> 00:01:07,160 Speaker 1: and I hate so one of the doctors I actually 20 00:01:07,600 --> 00:01:10,039 Speaker 1: and I went, I went, yeah, I got some meds. 21 00:01:10,040 --> 00:01:11,880 Speaker 1: So I'm hoping that's going to get me on the 22 00:01:11,920 --> 00:01:13,959 Speaker 1: right path. So yeah, that's let's hope so man, But 23 00:01:14,120 --> 00:01:17,759 Speaker 1: h yes, this is an ask how to Money Monday episode, 24 00:01:17,800 --> 00:01:18,520 Speaker 1: and we've got. 25 00:01:18,560 --> 00:01:20,520 Speaker 2: Multiple topics to get to. We're going to talk about 26 00:01:20,520 --> 00:01:23,360 Speaker 2: the rule of fifty five, what that's all about. 27 00:01:23,160 --> 00:01:26,960 Speaker 1: And how it pertains to early retirements. Another listener is 28 00:01:27,440 --> 00:01:30,400 Speaker 1: wondering whether or not it's okay for him to put 29 00:01:30,440 --> 00:01:32,920 Speaker 1: five percent down when it comes to purchasing a home. 30 00:01:33,360 --> 00:01:35,959 Speaker 1: And another listener has a daughter that's growing up. She 31 00:01:36,120 --> 00:01:40,080 Speaker 1: is transitioning into adulthood. He wanted to pick our brains there, 32 00:01:40,200 --> 00:01:42,800 Speaker 1: So we'll talk about that plus more on today's episode. 33 00:01:42,800 --> 00:01:44,640 Speaker 1: But all right, before, I just wanted to give one 34 00:01:44,680 --> 00:01:46,759 Speaker 1: quick tip. And we've talked about this before on the show, 35 00:01:47,080 --> 00:01:51,320 Speaker 1: but there is a law in Europe that basically forces 36 00:01:51,360 --> 00:01:55,600 Speaker 1: airlines to compensate you if your flight's delayed. And this 37 00:01:55,640 --> 00:01:57,800 Speaker 1: is something mett For some reason, it feels like it's 38 00:01:57,800 --> 00:02:01,200 Speaker 1: on nobody's radar. But my mother in law told me 39 00:02:01,760 --> 00:02:03,920 Speaker 1: a few weeks ago they'd gone to Scotland, actually not 40 00:02:03,960 --> 00:02:06,360 Speaker 1: too long after you and I went this year. Oh, 41 00:02:06,640 --> 00:02:08,639 Speaker 1: and they had a great time, but said something about 42 00:02:08,639 --> 00:02:11,120 Speaker 1: them okay, sorry to keep going all good. So their 43 00:02:11,160 --> 00:02:13,960 Speaker 1: return flight was delayed like four hours or something like that, 44 00:02:14,240 --> 00:02:17,320 Speaker 1: and that exceeds the amount of time they're able to 45 00:02:17,360 --> 00:02:19,639 Speaker 1: delay without having to pay you money. And I was like, oh, snap, 46 00:02:19,680 --> 00:02:21,840 Speaker 1: have you guys filed for EU two six. 47 00:02:21,639 --> 00:02:22,440 Speaker 2: One six one? 48 00:02:22,560 --> 00:02:24,519 Speaker 1: She was like no, So it's like some sort of 49 00:02:24,600 --> 00:02:28,440 Speaker 1: radioactive isotope, right, but in fact, this means money in 50 00:02:28,480 --> 00:02:28,959 Speaker 1: your pocket. 51 00:02:29,080 --> 00:02:30,600 Speaker 2: Yeah. She was like what do I do? 52 00:02:30,800 --> 00:02:33,040 Speaker 1: So I sent her the link and she texted me 53 00:02:33,320 --> 00:02:36,000 Speaker 1: over the Christmas break and she said she got almost 54 00:02:36,080 --> 00:02:40,120 Speaker 1: fifteen hundred dollars back thanks to that delay. So it's 55 00:02:40,120 --> 00:02:42,639 Speaker 1: like that's huge. You're almost like praying to be delayed 56 00:02:42,639 --> 00:02:44,440 Speaker 1: a little bit so you can get this compensation. You 57 00:02:44,480 --> 00:02:46,400 Speaker 1: wouldn't mind, I mean because most of the time you're 58 00:02:46,400 --> 00:02:49,200 Speaker 1: sitting there, I feel like an hour or two delay 59 00:02:49,280 --> 00:02:51,680 Speaker 1: is pretty typical. So it's like, okay, maybe another couple 60 00:02:51,760 --> 00:02:54,600 Speaker 1: hours and then we almost get the whole cost of 61 00:02:54,639 --> 00:02:55,520 Speaker 1: the ticket refunded. 62 00:02:55,600 --> 00:02:56,440 Speaker 2: Right, that's insane. 63 00:02:56,520 --> 00:02:59,079 Speaker 1: It's like, please, let's cross that threshold so we can 64 00:02:59,320 --> 00:03:01,000 Speaker 1: get a decent and chunk of money back in our 65 00:03:01,240 --> 00:03:04,080 Speaker 1: water wallets. Yeah, there's some good sites out there. We'll 66 00:03:04,160 --> 00:03:05,680 Speaker 1: link to those there in the show notes that way, 67 00:03:05,680 --> 00:03:07,200 Speaker 1: if you want to learn more about this, you know 68 00:03:07,440 --> 00:03:09,360 Speaker 1: where it is to go, where to learn more about it, 69 00:03:09,400 --> 00:03:12,560 Speaker 1: and how it is that you can file for that compensation. 70 00:03:12,600 --> 00:03:15,400 Speaker 1: We've got no such law here in the States. Europe does, 71 00:03:15,440 --> 00:03:17,000 Speaker 1: and even if you're taking a flight by the way 72 00:03:17,360 --> 00:03:21,560 Speaker 1: to Europe or from Europe to the States that those 73 00:03:21,600 --> 00:03:24,320 Speaker 1: flights basically fall under EU two six one as well. 74 00:03:24,400 --> 00:03:25,080 Speaker 2: So very nice. 75 00:03:25,240 --> 00:03:27,840 Speaker 1: Do you plan on doing? Did y'all set any new 76 00:03:28,040 --> 00:03:31,440 Speaker 1: any twenty twenty four travel resolutions? As far as you know, 77 00:03:31,520 --> 00:03:34,440 Speaker 1: we traveled so hard in twenty twenty three, which was great. Yeah, 78 00:03:34,520 --> 00:03:36,920 Speaker 1: I think we're definitely gonna we realized it was the 79 00:03:36,960 --> 00:03:39,480 Speaker 1: time to take advantage of travel and we're gonna have 80 00:03:39,520 --> 00:03:41,000 Speaker 1: We're gonna be traveling a little bit less this year, 81 00:03:41,040 --> 00:03:44,360 Speaker 1: so yeah, I think that partly with Emily's school and 82 00:03:44,800 --> 00:03:46,920 Speaker 1: kind of getting into working and stuff like that. So 83 00:03:47,160 --> 00:03:49,560 Speaker 1: maybe we can get some smaller domestic trips in Yeah, 84 00:03:49,600 --> 00:03:51,600 Speaker 1: how about that? Yeah, maybe not a big euro one 85 00:03:51,600 --> 00:03:53,520 Speaker 1: this year though, like a maybe, like a yeah, I 86 00:03:53,560 --> 00:03:55,200 Speaker 1: want to go hiking. I'm gonna want to do more, 87 00:03:55,240 --> 00:03:58,080 Speaker 1: Like I really enjoyed going on that hiking trip with 88 00:03:58,160 --> 00:04:00,280 Speaker 1: Kate and it'd be fun for us to do the 89 00:04:00,840 --> 00:04:03,120 Speaker 1: Camino Santiago in Spain. I'm trying to convince my dad 90 00:04:03,200 --> 00:04:06,320 Speaker 1: to do that with me, so maybe just maybe that 91 00:04:06,320 --> 00:04:08,240 Speaker 1: that'll be later this year, but that's something I want 92 00:04:08,240 --> 00:04:10,360 Speaker 1: to do with my kids. Yeah, like sort of as 93 00:04:10,400 --> 00:04:13,240 Speaker 1: like a rite of passage. It's either that or even 94 00:04:13,240 --> 00:04:14,840 Speaker 1: doing the at But the eight is just so much 95 00:04:14,880 --> 00:04:16,760 Speaker 1: more intense. Yeah, Like, if you're gonna do that, you've 96 00:04:16,800 --> 00:04:20,320 Speaker 1: got to be a real wilderness person, right, because if 97 00:04:20,320 --> 00:04:22,120 Speaker 1: you're gonna through hike it, it's months and months. Well, 98 00:04:22,160 --> 00:04:25,239 Speaker 1: our first is just like a week, ten days perhaps 99 00:04:25,279 --> 00:04:29,680 Speaker 1: if when you're doing the Camino Santiago. Yeah, our mutual 100 00:04:29,680 --> 00:04:33,440 Speaker 1: friend Chad Carson, he took his girls and and they're 101 00:04:33,480 --> 00:04:35,920 Speaker 1: a little bit older than our Arkado so yeah, but 102 00:04:35,920 --> 00:04:37,360 Speaker 1: they were, I mean they were in Europe for a year, 103 00:04:37,400 --> 00:04:39,840 Speaker 1: so it makes sense like they were literally in Spain. 104 00:04:40,320 --> 00:04:42,440 Speaker 1: So you better be doing it, is right, It is 105 00:04:42,520 --> 00:04:45,040 Speaker 1: right if you're over there. All right, man, let's quickly 106 00:04:45,080 --> 00:04:47,760 Speaker 1: introduce the beer you and I are enjoying. And you 107 00:04:47,880 --> 00:04:49,960 Speaker 1: might only enjoy a very small amount of this beer. 108 00:04:49,960 --> 00:04:52,720 Speaker 1: We'll see you, but this is a violent green. This 109 00:04:52,800 --> 00:04:55,560 Speaker 1: is a beer by Evergreen. Another one that was donated 110 00:04:55,600 --> 00:04:58,960 Speaker 1: to the show by Rihanna. Thanks again, Rihanna for sending 111 00:04:58,960 --> 00:05:01,599 Speaker 1: a bunch our away. We'll share our thoughts at the 112 00:05:01,720 --> 00:05:04,120 Speaker 1: end of the episode. But yeah, this is a listener 113 00:05:04,560 --> 00:05:08,400 Speaker 1: questions episode, and you too can send your voice memo 114 00:05:08,480 --> 00:05:11,120 Speaker 1: in and have it answered by Joel and I at 115 00:05:11,160 --> 00:05:14,200 Speaker 1: the very least, we'll talk about it. Maybe we won't 116 00:05:14,200 --> 00:05:17,560 Speaker 1: provide you with a perfectly satisfactory answer, but to our 117 00:05:17,600 --> 00:05:21,200 Speaker 1: best absolutely. Yeah, and we take listener questions every Monday 118 00:05:21,240 --> 00:05:23,360 Speaker 1: here on the podcast. But yeah, let's get to our 119 00:05:23,360 --> 00:05:25,880 Speaker 1: first one. This is a listener who has a question 120 00:05:26,000 --> 00:05:28,680 Speaker 1: about the down payment that he has on hand to 121 00:05:28,680 --> 00:05:29,679 Speaker 1: put towards a house. 122 00:05:30,360 --> 00:05:32,880 Speaker 3: Hey, guys, right here, calling you from Los Angeles. Love 123 00:05:32,920 --> 00:05:35,640 Speaker 3: the show, thanks for having me on. My wife and 124 00:05:35,680 --> 00:05:38,920 Speaker 3: I just recently paid our student loan debt and we're 125 00:05:38,960 --> 00:05:41,760 Speaker 3: super excited about that, but it left our savings account 126 00:05:41,839 --> 00:05:45,479 Speaker 3: almost all the way depleted. We currently rent here and 127 00:05:45,520 --> 00:05:48,880 Speaker 3: would really rather be paying for a house that we own, 128 00:05:49,360 --> 00:05:53,080 Speaker 3: especially since rent is so expensive. We both work full time, 129 00:05:53,440 --> 00:05:57,359 Speaker 3: we have income from rental property. Also, our emergency fund 130 00:05:57,440 --> 00:06:01,240 Speaker 3: is good, retirement contributions are max so we're all good there, 131 00:06:01,920 --> 00:06:04,160 Speaker 3: but we're just having a hard time saving money right 132 00:06:04,200 --> 00:06:07,359 Speaker 3: now with rent being as high as it is currently. 133 00:06:07,400 --> 00:06:10,000 Speaker 3: We have about a five percent down payment saved for 134 00:06:10,040 --> 00:06:13,240 Speaker 3: the price that we're looking at, And my question is 135 00:06:13,320 --> 00:06:15,960 Speaker 3: it worth it to go five percent down pay the 136 00:06:16,000 --> 00:06:19,280 Speaker 3: PMI so that way we can own our house and 137 00:06:19,320 --> 00:06:21,799 Speaker 3: we can even itemize on our taxes from the interest, 138 00:06:22,520 --> 00:06:25,520 Speaker 3: or should we just keep renting save what we can 139 00:06:26,360 --> 00:06:29,560 Speaker 3: and just see how long it takes to save up 140 00:06:29,640 --> 00:06:32,800 Speaker 3: enough for a twenty percent down payment? Or last resort 141 00:06:32,839 --> 00:06:35,719 Speaker 3: do we sell a rental? We'd rather not, but maybe 142 00:06:35,720 --> 00:06:38,279 Speaker 3: that's the way to go. Thanks for having me and 143 00:06:38,440 --> 00:06:39,760 Speaker 3: have a great day, all. 144 00:06:39,720 --> 00:06:42,520 Speaker 1: Right, Ray, thanks so much for your question man, and seriously, 145 00:06:42,520 --> 00:06:45,520 Speaker 1: big win. Paying off that student loan debt. Not having 146 00:06:45,520 --> 00:06:48,880 Speaker 1: that payment in your life should help you to restore 147 00:06:49,200 --> 00:06:51,240 Speaker 1: that all important emergency fund. I think you're be able 148 00:06:51,240 --> 00:06:53,400 Speaker 1: to do it quickly. What a good feeling it is too. 149 00:06:53,440 --> 00:06:55,440 Speaker 1: I mean, just tens of millions of people in this 150 00:06:55,480 --> 00:06:58,080 Speaker 1: country mat have overwhelming levels of student loan debt. Yeah, 151 00:06:58,160 --> 00:07:00,000 Speaker 1: Ray is not one of them, so you definitely deserve 152 00:07:00,120 --> 00:07:00,800 Speaker 1: a high five for that. 153 00:07:00,880 --> 00:07:01,920 Speaker 2: He's got that off his back. 154 00:07:02,000 --> 00:07:04,960 Speaker 1: Yeah, and I wouldn't consider buying a home, by the way, 155 00:07:05,080 --> 00:07:08,280 Speaker 1: until you've replenished that. But with one less debt in 156 00:07:08,320 --> 00:07:10,520 Speaker 1: your life, once you've got that built back up, it 157 00:07:10,680 --> 00:07:12,480 Speaker 1: just might be the right time to buy that home. 158 00:07:12,800 --> 00:07:16,760 Speaker 1: So yeah, start focusing on getting that savings back up. 159 00:07:17,080 --> 00:07:19,480 Speaker 1: You got the e fund, which is great, but I 160 00:07:19,520 --> 00:07:21,320 Speaker 1: want you to have more savings on hand than just 161 00:07:21,400 --> 00:07:23,080 Speaker 1: kind of that bare minimum to cover you in case 162 00:07:23,080 --> 00:07:25,760 Speaker 1: of emergency exactly. Yeah, I mean, he said his savings 163 00:07:25,840 --> 00:07:28,200 Speaker 1: was depleted, and honestly, maybe what he's talking about too, 164 00:07:28,240 --> 00:07:31,480 Speaker 1: is the fact that the he had like a stockpile 165 00:07:31,560 --> 00:07:33,520 Speaker 1: of funds on hand, and he's. 166 00:07:33,600 --> 00:07:35,640 Speaker 2: I'm sure that was a tough sort of question. It's like, 167 00:07:35,640 --> 00:07:35,880 Speaker 2: do we go. 168 00:07:35,840 --> 00:07:37,840 Speaker 1: Ahead and be off the student loans or do we 169 00:07:37,960 --> 00:07:40,040 Speaker 1: keep this fat stack around to be able. 170 00:07:39,920 --> 00:07:40,760 Speaker 2: To put towards the house. 171 00:07:40,920 --> 00:07:43,720 Speaker 1: They chose to eliminate the student loans, But yeah, I 172 00:07:43,720 --> 00:07:44,160 Speaker 1: think it's. 173 00:07:44,040 --> 00:07:46,760 Speaker 2: A prudent choice, but it's not an easy one. 174 00:07:46,840 --> 00:07:49,320 Speaker 1: And then it leaves you like salivating when you're looking 175 00:07:49,320 --> 00:07:51,480 Speaker 1: at homes on the internet and you're a little bummed 176 00:07:51,520 --> 00:07:53,200 Speaker 1: because you feel like you don't have the cash reserves 177 00:07:53,200 --> 00:07:55,520 Speaker 1: to like pounce exactly. But that being said, I mean, 178 00:07:55,560 --> 00:07:57,440 Speaker 1: what you're getting at, though, is the fact that with 179 00:07:57,560 --> 00:08:00,320 Speaker 1: this payment no longer being in their life, I think 180 00:08:00,400 --> 00:08:03,239 Speaker 1: Ray is going to be able to rebound really quickly, 181 00:08:03,880 --> 00:08:06,320 Speaker 1: faster than he even thinks. Yeah, and where he's going 182 00:08:06,360 --> 00:08:09,040 Speaker 1: to be able to have a significant down payment on hand. 183 00:08:09,480 --> 00:08:11,440 Speaker 1: But right now, what he's asking about is whether or 184 00:08:11,440 --> 00:08:13,600 Speaker 1: not or not it's cool to purchase a home with 185 00:08:13,640 --> 00:08:16,760 Speaker 1: only five percent down. And this is a great question 186 00:08:16,920 --> 00:08:19,120 Speaker 1: worth taking because I think there are a lot of 187 00:08:19,120 --> 00:08:21,920 Speaker 1: folks out there in a similar boat, and there's a 188 00:08:21,960 --> 00:08:24,239 Speaker 1: lot to discuss given the state of the housing market 189 00:08:24,280 --> 00:08:27,600 Speaker 1: at the moment. The first things first, let's just talk 190 00:08:27,640 --> 00:08:30,440 Speaker 1: about home ownership just generally speaking, because the desire to 191 00:08:30,520 --> 00:08:34,200 Speaker 1: own a home is great. We're fans of home ownership ourselves, 192 00:08:34,360 --> 00:08:37,959 Speaker 1: but specifically when folks are financially ready for it. Now, 193 00:08:37,960 --> 00:08:40,080 Speaker 1: there are some real benefits to it, but those benefits 194 00:08:40,120 --> 00:08:43,720 Speaker 1: aren't typically going to be financial in nature. It is 195 00:08:43,720 --> 00:08:46,680 Speaker 1: true that the average American has the vast majority the 196 00:08:46,720 --> 00:08:49,720 Speaker 1: bulk of their net worth tied up in home equity. 197 00:08:50,000 --> 00:08:51,680 Speaker 2: That's also something we don't love exactly. 198 00:08:51,760 --> 00:08:55,320 Speaker 1: Yeah, it's just a forced method of savings for most folks. 199 00:08:55,440 --> 00:08:57,920 Speaker 1: But it is not what we necessarily want for how 200 00:08:57,960 --> 00:09:02,200 Speaker 1: to money listeners. But luckily Ray isn't the average person. 201 00:09:02,679 --> 00:09:03,200 Speaker 2: He is. 202 00:09:03,280 --> 00:09:05,120 Speaker 1: It seems like he's doing a great job on a 203 00:09:05,160 --> 00:09:09,040 Speaker 1: whole lot of fronts that might open up more doors, 204 00:09:09,040 --> 00:09:11,600 Speaker 1: more options that are might be now at his disposal. 205 00:09:11,679 --> 00:09:13,680 Speaker 1: Let me highlight those things. Right, He's doing a killer 206 00:09:13,760 --> 00:09:16,960 Speaker 1: job focusing on finances, maxing out retirement accounts. You've got 207 00:09:17,000 --> 00:09:19,200 Speaker 1: that rental property, which is a great thing to have 208 00:09:19,280 --> 00:09:23,120 Speaker 1: in your back pocket. I would have maybe, yeah, because 209 00:09:23,280 --> 00:09:25,680 Speaker 1: like at the end he said something about worst case scenario, 210 00:09:26,040 --> 00:09:28,719 Speaker 1: sell a property. Yeah, I'm like, wait a minute, how 211 00:09:28,720 --> 00:09:31,719 Speaker 1: many properties do you have on hand? And ideally it's 212 00:09:31,760 --> 00:09:33,640 Speaker 1: a strong position to be in. I mean, you don't 213 00:09:33,679 --> 00:09:36,079 Speaker 1: necessarily want to sell a rental property in order to 214 00:09:36,080 --> 00:09:38,240 Speaker 1: buy the home of your dreams. That's going to impact 215 00:09:38,280 --> 00:09:41,200 Speaker 1: your future too. But I also get that, hey, maybe 216 00:09:41,240 --> 00:09:43,280 Speaker 1: if it was that a medium term investment to help 217 00:09:43,280 --> 00:09:45,120 Speaker 1: you buy the home that you want it, that could 218 00:09:45,160 --> 00:09:48,280 Speaker 1: be a legitimate option too. But basically, Ray, since you've 219 00:09:48,280 --> 00:09:50,400 Speaker 1: done a lot of the hard work to funnel large 220 00:09:50,400 --> 00:09:53,240 Speaker 1: sums of money into crucial investments for your future already, 221 00:09:53,600 --> 00:09:56,080 Speaker 1: or okay with you having a smaller down payment set aside. 222 00:09:56,200 --> 00:09:58,880 Speaker 1: It's not ideal, but it's not unwise. And so if 223 00:09:58,920 --> 00:10:01,000 Speaker 1: you can afford the payment, and this is an important 224 00:10:01,040 --> 00:10:04,080 Speaker 1: lifestyle goal for you and your family, giving your attention 225 00:10:04,160 --> 00:10:06,600 Speaker 1: to detail in the rest of your financial life. I 226 00:10:06,600 --> 00:10:09,120 Speaker 1: feel pretty comfortable with you guys only putting five percent down. 227 00:10:09,600 --> 00:10:12,080 Speaker 2: That doesn't no alarm bells are sounding that for me 228 00:10:12,120 --> 00:10:13,040 Speaker 2: when I hear Ray say that. 229 00:10:13,080 --> 00:10:15,679 Speaker 1: And again it's because Ray isn't the average American out 230 00:10:15,679 --> 00:10:18,040 Speaker 1: there with nothing set aside for retirement. 231 00:10:18,080 --> 00:10:20,280 Speaker 2: He's got a whole lot of other assets. 232 00:10:20,679 --> 00:10:22,440 Speaker 1: There's there a lot of other people who might call 233 00:10:22,480 --> 00:10:23,920 Speaker 1: in and say, I just I want to put five 234 00:10:23,920 --> 00:10:26,480 Speaker 1: percent down, and we might they might not be in 235 00:10:26,520 --> 00:10:29,760 Speaker 1: the same overall financial position, and it's a different calculus exactly. Yeah, 236 00:10:29,760 --> 00:10:31,840 Speaker 1: it is worth mentioning some of the downsides though, of 237 00:10:32,160 --> 00:10:35,480 Speaker 1: only putting now five percent, Right, you already mentioned pm I, 238 00:10:35,559 --> 00:10:37,920 Speaker 1: and of course that's going to make your mortgage payment higher. 239 00:10:37,920 --> 00:10:40,959 Speaker 1: But by putting down less money, it's likely going to 240 00:10:41,040 --> 00:10:42,760 Speaker 1: mean that the interest rate that you're going to receive 241 00:10:42,800 --> 00:10:45,319 Speaker 1: your mortgage interest rate may not be quite. 242 00:10:45,160 --> 00:10:45,920 Speaker 2: As good either. 243 00:10:46,320 --> 00:10:49,000 Speaker 1: That's going to also make your mortgage payment go up. 244 00:10:49,280 --> 00:10:51,079 Speaker 1: But then just the fact that you're financing more money 245 00:10:51,120 --> 00:10:52,720 Speaker 1: right like there is going to be there's a larger 246 00:10:52,760 --> 00:10:56,040 Speaker 1: principle sum that you're having to finance, and so all 247 00:10:56,080 --> 00:10:58,040 Speaker 1: three of those things it kind of makes it feel 248 00:10:58,080 --> 00:10:59,520 Speaker 1: like you might be paying out the nose a little 249 00:10:59,520 --> 00:11:01,839 Speaker 1: bit actually, just with interest rates being where they are, 250 00:11:02,240 --> 00:11:05,040 Speaker 1: to not get the absolute most competitive rate because you're 251 00:11:05,080 --> 00:11:07,520 Speaker 1: putting down a little bit less. These are all things 252 00:11:07,520 --> 00:11:09,480 Speaker 1: that you need to take into account before it's like, 253 00:11:09,520 --> 00:11:13,040 Speaker 1: all right, five percent down, mat and Jill gave me 254 00:11:13,080 --> 00:11:15,480 Speaker 1: the thumbs up. Obviously, there are trade offs, but what 255 00:11:15,480 --> 00:11:17,680 Speaker 1: we're saying, though, is that those trade offs might be 256 00:11:17,800 --> 00:11:21,959 Speaker 1: worth it considering the strong financial position that you're already in. 257 00:11:22,320 --> 00:11:25,040 Speaker 1: But another caveat worth mentioning, though, is when you look 258 00:11:25,040 --> 00:11:27,480 Speaker 1: at the charts of how much it costs to own 259 00:11:27,559 --> 00:11:30,520 Speaker 1: versus how much it costs to rent renting, it looks 260 00:11:30,559 --> 00:11:34,400 Speaker 1: smarter than basically ever before, given what's happened with home 261 00:11:34,480 --> 00:11:37,640 Speaker 1: prices and with mortgage rates. So just know that buying 262 00:11:37,640 --> 00:11:41,000 Speaker 1: that house is totally fine if that's a meaningful goal 263 00:11:41,120 --> 00:11:43,520 Speaker 1: of yours, but it's just not a slam dunk decision 264 00:11:43,600 --> 00:11:45,959 Speaker 1: given the current conditions. There's actually an article in the 265 00:11:46,040 --> 00:11:49,120 Speaker 1: Journal a few weeks back about why buying a home, 266 00:11:49,160 --> 00:11:51,199 Speaker 1: how it no longer makes sense, and they had a 267 00:11:51,920 --> 00:11:54,920 Speaker 1: just a great chart in they're showing rental prices versus 268 00:11:55,000 --> 00:11:57,920 Speaker 1: the average home price, and tenants around the country are like, 269 00:11:58,200 --> 00:12:00,640 Speaker 1: it sucks. I'm paying so much Morenybody who's trying to 270 00:12:00,640 --> 00:12:03,240 Speaker 1: buy a home right now, like, oh wait, renting doesn't 271 00:12:03,280 --> 00:12:06,000 Speaker 1: look up. It hurts even more if you're trying to buy. 272 00:12:06,440 --> 00:12:09,160 Speaker 1: And especially too, I'm surprised because he mentioned he's out 273 00:12:09,160 --> 00:12:12,360 Speaker 1: there in LA. The disparity in southern California where he 274 00:12:12,400 --> 00:12:15,240 Speaker 1: lives it's even more extreme than the rest of the country. 275 00:12:15,240 --> 00:12:17,840 Speaker 1: And so I think it's at least worth considering some 276 00:12:17,840 --> 00:12:20,959 Speaker 1: of these different market conditions before you keep pursuing the 277 00:12:21,320 --> 00:12:24,040 Speaker 1: route of home ownership. You know, home buying is is 278 00:12:24,160 --> 00:12:26,600 Speaker 1: very much a personal thing, and it's like, are you 279 00:12:26,679 --> 00:12:28,600 Speaker 1: actually financially ready to do this? And is this a 280 00:12:28,640 --> 00:12:31,080 Speaker 1: major goal of yours? Because even if it's not the 281 00:12:31,080 --> 00:12:34,360 Speaker 1: smartest market conditions, it doesn't matter if you've saved well 282 00:12:34,400 --> 00:12:37,560 Speaker 1: and you and mortgage rates are higher, but you're like, listen, 283 00:12:37,600 --> 00:12:40,120 Speaker 1: I found this awesome house. Is perfect for my family, 284 00:12:40,440 --> 00:12:42,800 Speaker 1: and we can we can easily afford this in our budget. 285 00:12:43,000 --> 00:12:45,479 Speaker 1: We're not giving up, like we're not stopping all contributions 286 00:12:45,520 --> 00:12:48,400 Speaker 1: to the four one Gay or eating you know, ramen 287 00:12:48,480 --> 00:12:51,680 Speaker 1: every night because we bought this house. Then that's totally fine. 288 00:12:51,679 --> 00:12:54,760 Speaker 1: It doesn't have to be just based on market conditions 289 00:12:54,800 --> 00:12:58,360 Speaker 1: like that. That's what an over optimized robotic person would do, right, 290 00:12:58,600 --> 00:13:00,559 Speaker 1: and so I would. But I would say, you mentioned 291 00:13:00,640 --> 00:13:03,120 Speaker 1: high rents as a motivator for buying a house, but 292 00:13:03,240 --> 00:13:05,439 Speaker 1: I would suggest doing the math and seeing how much 293 00:13:05,440 --> 00:13:07,440 Speaker 1: more it will cost you to buy a home in 294 00:13:07,480 --> 00:13:09,920 Speaker 1: the current environment. That's what it comes down to, because 295 00:13:10,040 --> 00:13:12,600 Speaker 1: it seems like and not just seems like, but rents 296 00:13:12,600 --> 00:13:15,800 Speaker 1: have gone up substantially in the last few years. 297 00:13:16,160 --> 00:13:18,439 Speaker 2: But I think this will be one of two things. 298 00:13:18,559 --> 00:13:20,760 Speaker 1: It'll either make you less annoyed at what you're paying 299 00:13:20,800 --> 00:13:23,880 Speaker 1: in rent, or you'll realize that the disparity isn't all 300 00:13:23,920 --> 00:13:26,920 Speaker 1: that bad given the price range an area you're looking 301 00:13:26,960 --> 00:13:29,480 Speaker 1: to buy. So either way, let the numbers and your 302 00:13:29,520 --> 00:13:32,560 Speaker 1: personal goals like help inform your decision, not just being 303 00:13:32,559 --> 00:13:35,280 Speaker 1: annoyed by a rent increase. And we've talked about this 304 00:13:35,320 --> 00:13:37,719 Speaker 1: to Matt, rents are softening. If your landlord's trying to 305 00:13:37,720 --> 00:13:39,959 Speaker 1: pass through a rent increase to you and you're actually like, 306 00:13:40,200 --> 00:13:41,679 Speaker 1: it's not a bad house, we wouldn't mind staying for 307 00:13:41,679 --> 00:13:43,640 Speaker 1: another year and saving up a little longer, Well, you 308 00:13:43,640 --> 00:13:46,240 Speaker 1: can push back and at the very least to have 309 00:13:46,320 --> 00:13:48,600 Speaker 1: a conversation. I have had tenants do that to me recently, 310 00:13:48,640 --> 00:13:51,760 Speaker 1: and guess what you're like, Uh, you usually always pay 311 00:13:51,800 --> 00:13:54,600 Speaker 1: on time. I never hear from you. So I have 312 00:13:54,720 --> 00:13:56,800 Speaker 1: lowered rent for tenants recently. 313 00:13:56,840 --> 00:13:57,600 Speaker 2: Yeah, there you go. 314 00:13:57,800 --> 00:14:00,600 Speaker 1: Yep, dude, a good renter makes all the difference it 315 00:14:00,600 --> 00:14:03,280 Speaker 1: does in the world. I do really like what you 316 00:14:03,320 --> 00:14:05,720 Speaker 1: said though, about them being about him being annoyed, because 317 00:14:05,720 --> 00:14:07,120 Speaker 1: I think that might be the case because what I 318 00:14:07,120 --> 00:14:09,480 Speaker 1: didn't hear him talk about, and this is really interesting, 319 00:14:09,480 --> 00:14:11,959 Speaker 1: but he didn't talk about wanting to put down roots, 320 00:14:12,040 --> 00:14:14,280 Speaker 1: or he didn't talk about community or even outgrowing the 321 00:14:14,320 --> 00:14:16,600 Speaker 1: house where it's like, hey, where we are currently no 322 00:14:16,640 --> 00:14:20,160 Speaker 1: longer suits our needs. It seems that what he is 323 00:14:20,240 --> 00:14:23,200 Speaker 1: annoyed at is the fact that he's paying rent when 324 00:14:23,240 --> 00:14:27,680 Speaker 1: he owns properties. It's like he's angry at the principle 325 00:14:28,000 --> 00:14:30,040 Speaker 1: of the fact that he's paying rents. He hates the 326 00:14:30,120 --> 00:14:33,440 Speaker 1: idea that he's paying rent when instead he could be 327 00:14:33,560 --> 00:14:35,520 Speaker 1: putting that towards equity. Well, there are a lot of 328 00:14:35,560 --> 00:14:38,560 Speaker 1: people who would say, oh, renting is just throwing away money, 329 00:14:38,560 --> 00:14:39,680 Speaker 1: which we would say, not. 330 00:14:39,600 --> 00:14:40,040 Speaker 2: True at all. 331 00:14:40,080 --> 00:14:42,000 Speaker 1: You're putting a roof over your head, and for the 332 00:14:42,000 --> 00:14:44,360 Speaker 1: most part, for most people, it means there's going to 333 00:14:44,400 --> 00:14:47,320 Speaker 1: be you're gonna pay less overall every single month because 334 00:14:47,520 --> 00:14:49,440 Speaker 1: it's just cheaper than getting a mortgage these days. That 335 00:14:49,480 --> 00:14:52,240 Speaker 1: hasn't always been the case, but it is now, at 336 00:14:52,320 --> 00:14:53,320 Speaker 1: least in most markets. 337 00:14:53,360 --> 00:14:54,680 Speaker 2: But there's other benefits as well. 338 00:14:54,720 --> 00:14:56,600 Speaker 1: Yeah, it's other stuff that you don't have to worry about. 339 00:14:56,800 --> 00:14:59,280 Speaker 1: But it just sounds like he is more adverse to 340 00:14:59,320 --> 00:15:02,280 Speaker 1: the idea of the fact that he's renting than the 341 00:15:02,280 --> 00:15:04,080 Speaker 1: actual facts on the ground. Yeah, which is why I 342 00:15:04,080 --> 00:15:05,800 Speaker 1: think what you said is makes so much sense. Just 343 00:15:05,840 --> 00:15:09,160 Speaker 1: run the numbers and the reality of what you're faced 344 00:15:09,160 --> 00:15:12,080 Speaker 1: with might help you to realize. What doesn't matter that 345 00:15:12,120 --> 00:15:15,280 Speaker 1: this goes against every fiber of your being, ray that 346 00:15:15,280 --> 00:15:18,120 Speaker 1: that you're paying these dollars towards somebody else. If in 347 00:15:18,160 --> 00:15:20,800 Speaker 1: the end it means that there are other benefits that 348 00:15:20,800 --> 00:15:24,840 Speaker 1: you're receiving and even finan potential financial benefits from renting. Well, dang, 349 00:15:24,880 --> 00:15:27,240 Speaker 1: that might be exactly what you need to keep doing. 350 00:15:27,320 --> 00:15:30,200 Speaker 1: Maybe you don't necessarily need to rent, and that just 351 00:15:30,280 --> 00:15:32,280 Speaker 1: might just change your tune about renting, or at least 352 00:15:32,320 --> 00:15:34,320 Speaker 1: slows the role a little bit, which then allows him 353 00:15:34,320 --> 00:15:36,600 Speaker 1: to then save up even more money to have on hand. 354 00:15:36,920 --> 00:15:38,520 Speaker 1: All of a sudden, before he knows it, he's got 355 00:15:38,520 --> 00:15:41,560 Speaker 1: ten percent down and it's it's just been a few months, 356 00:15:41,640 --> 00:15:43,400 Speaker 1: maybe you know, maybe it's the summer, and he realizes 357 00:15:43,400 --> 00:15:45,760 Speaker 1: he's got ten fifteen percent, and that just gives some 358 00:15:45,840 --> 00:15:49,000 Speaker 1: more time to explore different neighborhoods, maybe even figure out 359 00:15:49,040 --> 00:15:51,120 Speaker 1: where it is that that they want to end up living. Yeah, 360 00:15:51,240 --> 00:15:54,200 Speaker 1: so I see no rush for him specifically, I guess 361 00:15:54,200 --> 00:15:56,880 Speaker 1: in this situation to rush out there and buy a home. 362 00:15:56,960 --> 00:16:00,000 Speaker 1: This might sound weird, but I don't think renting's never 363 00:16:00,120 --> 00:16:04,640 Speaker 1: been sexier. It's just given mortgage rates and the cost 364 00:16:04,680 --> 00:16:07,360 Speaker 1: of what people are asking asking prices for homes these days, 365 00:16:07,400 --> 00:16:10,280 Speaker 1: I would totally rent. Renting doesn't seem insane in any way. 366 00:16:10,360 --> 00:16:13,040 Speaker 1: Former fessionals, Yeah, given in most markets, given where we are, 367 00:16:13,080 --> 00:16:16,280 Speaker 1: I would one hundred percent consider renting if there is 368 00:16:16,320 --> 00:16:18,520 Speaker 1: a great house that suited our family, because that, to 369 00:16:18,520 --> 00:16:21,920 Speaker 1: be honest, the house that we're in, it's getting tight, man, 370 00:16:21,920 --> 00:16:24,680 Speaker 1: it's getting tight quick. And you totally rent if a 371 00:16:24,720 --> 00:16:25,280 Speaker 1: big enough house. 372 00:16:25,480 --> 00:16:26,680 Speaker 2: Yeah, absolutely, Trump. 373 00:16:26,720 --> 00:16:28,320 Speaker 1: But trouble is, there's just like, that's not a big 374 00:16:28,480 --> 00:16:31,880 Speaker 1: idea exactly exactly Ideally I would rather maybe buy that home, 375 00:16:32,880 --> 00:16:34,760 Speaker 1: and maybe that would be the that would be the 376 00:16:34,800 --> 00:16:37,040 Speaker 1: strategies like, hey, hey, I'll go ahead and sign, you know, 377 00:16:37,120 --> 00:16:39,200 Speaker 1: sign a lease, and then we start having some discussions 378 00:16:39,200 --> 00:16:40,800 Speaker 1: of like, Okay, what would it look like if for 379 00:16:40,840 --> 00:16:43,520 Speaker 1: you to unload this house and let me just take 380 00:16:43,560 --> 00:16:44,360 Speaker 1: it over completely. 381 00:16:44,720 --> 00:16:44,920 Speaker 4: Yeah. 382 00:16:44,960 --> 00:16:46,040 Speaker 1: Oh, and by the way, I just want to say 383 00:16:46,040 --> 00:16:49,560 Speaker 1: one last thing. Ray mentioned itemizing deductions, but because of 384 00:16:49,600 --> 00:16:53,040 Speaker 1: the much higher standard deduction, right, Ray, you even if 385 00:16:53,040 --> 00:16:55,840 Speaker 1: you buy a home, you still might not itemize something 386 00:16:55,880 --> 00:16:58,480 Speaker 1: like ninety percent of Americans do not itemize their deductions. 387 00:16:58,480 --> 00:17:02,000 Speaker 1: So you might think subtly, that's another win, another check 388 00:17:02,080 --> 00:17:05,399 Speaker 1: mark in the box of buying instead of renting, But 389 00:17:05,720 --> 00:17:09,119 Speaker 1: it might not be. It's often over sold as a 390 00:17:09,160 --> 00:17:10,840 Speaker 1: tax benefit, and it used to be a better tax 391 00:17:10,880 --> 00:17:13,600 Speaker 1: benefit until the Tax Cuts and Job Act came along, 392 00:17:13,920 --> 00:17:18,920 Speaker 1: but not many people, even homeowners, are itemizing their deductions exactly. Yeah, 393 00:17:19,160 --> 00:17:21,119 Speaker 1: it might be more of like a mental just another 394 00:17:21,200 --> 00:17:24,240 Speaker 1: sort of excuse. It's a good reason. Oh yeah, and 395 00:17:24,280 --> 00:17:25,840 Speaker 1: plus on top of that, then we'll be able to 396 00:17:26,480 --> 00:17:29,600 Speaker 1: realize that benefit. But yeah, Ray, we wish you the best. 397 00:17:30,160 --> 00:17:32,240 Speaker 1: And Joe, we've got more to get to, including a 398 00:17:32,320 --> 00:17:35,760 Speaker 1: question about retiring early. We'll get to that plus more 399 00:17:35,880 --> 00:17:45,480 Speaker 1: right after this. All right, Matt, we got more listener 400 00:17:45,560 --> 00:17:47,959 Speaker 1: questions to get to. This one comes from a listener 401 00:17:48,040 --> 00:17:50,880 Speaker 1: in Washington who wants to know how to set his 402 00:17:51,160 --> 00:17:53,040 Speaker 1: eighteen year old up for success. 403 00:17:53,400 --> 00:17:56,320 Speaker 4: Hey, Matt and Jeel, this is Trent, a longtime listener 404 00:17:56,320 --> 00:17:59,840 Speaker 4: from Seattle. I really enjoyed episode seven sixty where you 405 00:18:00,240 --> 00:18:04,160 Speaker 4: to kids stuff you know, preparing financially for babies, five 406 00:18:04,240 --> 00:18:08,600 Speaker 4: twenty nines for kids, wroths for teenagers. Fortunately I was 407 00:18:08,640 --> 00:18:10,760 Speaker 4: aware of most of the items that you talked about 408 00:18:11,040 --> 00:18:13,800 Speaker 4: and was able to take advantage of them. Well, my 409 00:18:13,880 --> 00:18:16,960 Speaker 4: daughter turned eighteen last week and we received a letter 410 00:18:17,000 --> 00:18:19,240 Speaker 4: from our credit union informing us that she would no 411 00:18:19,320 --> 00:18:22,800 Speaker 4: longer be earning the early savers interest rate. This got 412 00:18:22,840 --> 00:18:25,199 Speaker 4: me thinking about the other accounts and things that we 413 00:18:25,200 --> 00:18:29,520 Speaker 4: should consider doing as she transitioned into adulthood. Over her 414 00:18:29,560 --> 00:18:32,040 Speaker 4: eighteen years, we were able to invest in a Vanguard 415 00:18:32,080 --> 00:18:36,520 Speaker 4: custodial brokerage which has about seventy three thousand, and a 416 00:18:36,560 --> 00:18:38,600 Speaker 4: New York State five twenty nine that has about one 417 00:18:38,680 --> 00:18:42,520 Speaker 4: hundred thousand through gifts from family and friends. She also 418 00:18:42,560 --> 00:18:45,919 Speaker 4: has twelve thousand in a custodial Wroth account at Fidelity, 419 00:18:46,280 --> 00:18:48,640 Speaker 4: which she funded by working at a dry cleaner since 420 00:18:48,640 --> 00:18:52,080 Speaker 4: she was fourteen. Is there something I should consider doing 421 00:18:52,119 --> 00:18:55,080 Speaker 4: with the custodial accounts now that she's an adult? What 422 00:18:55,160 --> 00:18:58,840 Speaker 4: other things would you suggest she consider? I'm thinking of 423 00:18:58,920 --> 00:19:02,040 Speaker 4: things like applying for her own credit card she's currently 424 00:19:02,080 --> 00:19:06,440 Speaker 4: an authorized user online, switching bank accounts for better interest 425 00:19:06,920 --> 00:19:10,639 Speaker 4: credit freeze. I would like to hear any other suggestions 426 00:19:10,680 --> 00:19:13,840 Speaker 4: you may have for this transition. Thank you, Matt. 427 00:19:13,880 --> 00:19:15,399 Speaker 1: The only thing I didn't hear Trent say that his 428 00:19:15,520 --> 00:19:18,679 Speaker 1: daughter had was gold bars from Cosco. There's so much 429 00:19:18,720 --> 00:19:20,240 Speaker 1: I want to jump on because he said so many 430 00:19:20,240 --> 00:19:23,440 Speaker 1: great things. Yeah, Like first of all, oh yeah, credit Union, 431 00:19:23,520 --> 00:19:25,479 Speaker 1: we no longer get the early savers. We don't need 432 00:19:25,520 --> 00:19:28,879 Speaker 1: you anyway. I'm thinking that I'm thinking about the just 433 00:19:28,920 --> 00:19:32,520 Speaker 1: the vast amount of money that Trent and his. 434 00:19:32,520 --> 00:19:34,359 Speaker 2: Daughter that they've been able to set aside. 435 00:19:34,440 --> 00:19:37,800 Speaker 1: She is in such such an incredible position, and it's 436 00:19:37,880 --> 00:19:40,120 Speaker 1: clear that you've already done an amazing job at getting 437 00:19:40,119 --> 00:19:42,320 Speaker 1: her started off on the right foot. Like, honestly, she's 438 00:19:42,520 --> 00:19:43,440 Speaker 1: got more money than like. 439 00:19:43,400 --> 00:19:46,520 Speaker 2: The majority of folks towards twice a rage, that's true. 440 00:19:46,960 --> 00:19:49,640 Speaker 1: Maybe even more, And she's unlikely to have to take 441 00:19:49,680 --> 00:19:52,960 Speaker 1: on any debt for college for higher education given that 442 00:19:53,119 --> 00:19:56,359 Speaker 1: massive stash that's sitting there in her five to twenty 443 00:19:56,440 --> 00:19:59,080 Speaker 1: nine account. And keep in mind that if she doesn't 444 00:19:59,119 --> 00:20:01,080 Speaker 1: need all of those funds, that those dollars can be 445 00:20:01,160 --> 00:20:04,320 Speaker 1: used to fund another child's education or even your own 446 00:20:04,400 --> 00:20:07,879 Speaker 1: or our partners, or you can use thirty five thousand 447 00:20:07,920 --> 00:20:10,960 Speaker 1: dollars of that money to beef up her rough ira. 448 00:20:11,160 --> 00:20:14,240 Speaker 1: That's something that has started this year. You can read 449 00:20:14,320 --> 00:20:16,720 Speaker 1: up on the rules, but they're pretty specific about the 450 00:20:16,800 --> 00:20:19,960 Speaker 1: length of time that the account has to be opened 451 00:20:20,359 --> 00:20:23,320 Speaker 1: and you can only contribute up to the annual contribution limit. 452 00:20:23,440 --> 00:20:25,639 Speaker 1: So might you know, take your like half a decade 453 00:20:25,680 --> 00:20:27,440 Speaker 1: or so for you to pull us off. But just 454 00:20:27,480 --> 00:20:29,840 Speaker 1: think about how wealthy even more wealthy that she'll be 455 00:20:29,880 --> 00:20:32,760 Speaker 1: by the time she's by the time she's twenty three. 456 00:20:33,359 --> 00:20:37,200 Speaker 1: Most recent grads don't, I mean, they've got negative networth. 457 00:20:37,400 --> 00:20:39,400 Speaker 1: She has the potential to have a lot more than 458 00:20:39,400 --> 00:20:41,399 Speaker 1: that to her name. No, A big positive one for sure. 459 00:20:41,880 --> 00:20:45,040 Speaker 1: And I love something else too. He said that his 460 00:20:45,119 --> 00:20:48,040 Speaker 1: daughter's been working since she was fourteen, and I think 461 00:20:48,040 --> 00:20:50,639 Speaker 1: it's amazing. That's something you and I encourage regularly. Not 462 00:20:51,400 --> 00:20:53,840 Speaker 1: so that kids lose their childhood and are working forty 463 00:20:53,840 --> 00:20:55,919 Speaker 1: hours a week the day they turned fourteen. It's not 464 00:20:56,000 --> 00:20:58,560 Speaker 1: that sort of mentality that I have. But I started 465 00:20:58,560 --> 00:21:01,320 Speaker 1: working when I was fourteen, across from my high school, 466 00:21:01,359 --> 00:21:04,679 Speaker 1: and I learned a lot. Like I'm super convinced that 467 00:21:04,800 --> 00:21:08,119 Speaker 1: working part time in high school is invaluable from an 468 00:21:08,119 --> 00:21:12,400 Speaker 1: interpersonal standpoint and so self development standpoint as well. There's 469 00:21:12,440 --> 00:21:14,920 Speaker 1: just other things that you learn outside of the home. Yeah, yeah, 470 00:21:15,080 --> 00:21:18,200 Speaker 1: being having instead of just teachers now they are managers 471 00:21:18,200 --> 00:21:20,800 Speaker 1: that you have to you have to interact with, And 472 00:21:20,880 --> 00:21:23,040 Speaker 1: so kudos to you guys on that. And now that 473 00:21:23,119 --> 00:21:25,240 Speaker 1: your daughter she's reached what's known as the age of 474 00:21:25,320 --> 00:21:28,240 Speaker 1: majority in her state, that account can be transferred fully 475 00:21:28,320 --> 00:21:30,239 Speaker 1: into her name, and there's not really anything you need 476 00:21:30,280 --> 00:21:32,960 Speaker 1: to do. It kind of happens automatically. I just make 477 00:21:33,040 --> 00:21:35,560 Speaker 1: sure that she knows about the accounts, how to log in, 478 00:21:35,640 --> 00:21:38,520 Speaker 1: how the money's invested or dib beat up, and then 479 00:21:38,560 --> 00:21:41,159 Speaker 1: what the money should likely be used for. It's kind 480 00:21:41,160 --> 00:21:43,360 Speaker 1: of like a passing of the financial torch here, right. 481 00:21:43,720 --> 00:21:45,639 Speaker 1: It's saying, hey, listen, we've been doing this together for 482 00:21:45,680 --> 00:21:46,320 Speaker 1: a bunch of years. 483 00:21:46,680 --> 00:21:49,639 Speaker 2: Now you got this. And so my guess is she 484 00:21:49,720 --> 00:21:50,600 Speaker 2: knows a lot already. 485 00:21:50,600 --> 00:21:53,639 Speaker 1: She probably knows what to do because you've been really intentional. 486 00:21:53,840 --> 00:21:56,480 Speaker 1: But this is a great opportunity for you to formalize it, 487 00:21:56,520 --> 00:21:58,600 Speaker 1: maybe in part one last money lesson or something. But 488 00:21:59,080 --> 00:22:01,240 Speaker 1: more than anything, it's chance to let her know. 489 00:22:01,359 --> 00:22:02,320 Speaker 2: How proud of her you are. 490 00:22:02,400 --> 00:22:05,480 Speaker 1: Yes, like a final little boost out into adulthood. Yeah, 491 00:22:06,160 --> 00:22:07,920 Speaker 1: and again you mentioned that she won't be earning that 492 00:22:08,160 --> 00:22:11,240 Speaker 1: higher rate at the credit union anymore. It is a 493 00:22:11,240 --> 00:22:15,080 Speaker 1: bummer because sometimes those different credit unions can pay a 494 00:22:15,200 --> 00:22:18,320 Speaker 1: pretty sweet rate. But it's probably time to encourage her 495 00:22:18,400 --> 00:22:21,000 Speaker 1: just to open up a highield savings account anyway with 496 00:22:21,040 --> 00:22:23,520 Speaker 1: one of our favorite online banks. Just check out the 497 00:22:23,560 --> 00:22:26,960 Speaker 1: features over at ally. I'm a big fan of them, Joel, 498 00:22:27,160 --> 00:22:30,280 Speaker 1: You're a big fan of discover c it. They consistently 499 00:22:30,320 --> 00:22:34,080 Speaker 1: offer the high rate rates out there, even honestly, even 500 00:22:34,080 --> 00:22:36,080 Speaker 1: if she's like an Apple person, Well, they've got a 501 00:22:36,080 --> 00:22:38,639 Speaker 1: solid savings account now as well. But I would just 502 00:22:38,640 --> 00:22:41,520 Speaker 1: push her out of the credit union for savings, but 503 00:22:41,640 --> 00:22:44,479 Speaker 1: at the same time maintain that relationship too, because when 504 00:22:44,520 --> 00:22:48,160 Speaker 1: it comes time to borrow in the future, that credit union, 505 00:22:48,359 --> 00:22:51,240 Speaker 1: it might have some of the best offerings around. Withdraw 506 00:22:51,320 --> 00:22:54,160 Speaker 1: those funds, but keep whatever minimum is required. Oftentimes it's 507 00:22:54,200 --> 00:22:57,480 Speaker 1: just like an associated savings account with like five bucks, 508 00:22:57,520 --> 00:22:59,040 Speaker 1: that kind of thing, just to keep that thing alive, 509 00:22:59,240 --> 00:23:00,920 Speaker 1: all right, So what else do you need to think about? 510 00:23:01,520 --> 00:23:03,680 Speaker 1: I mean, we think that you're thinking about the right stuff, Trent. 511 00:23:03,720 --> 00:23:06,040 Speaker 1: I feel like you're you've been on the right path 512 00:23:06,040 --> 00:23:08,560 Speaker 1: with your daughter for a long time, and it sounds 513 00:23:08,600 --> 00:23:10,920 Speaker 1: like you've done both. You've done the teaching and you've 514 00:23:10,920 --> 00:23:13,639 Speaker 1: helped her do some of the accumulating, which is pretty cool. 515 00:23:14,240 --> 00:23:16,760 Speaker 1: So I would say, helping her freeze her credit, maybe 516 00:23:16,760 --> 00:23:19,600 Speaker 1: that's a good idea. That's something that's worth pursuing. We'll 517 00:23:19,600 --> 00:23:21,280 Speaker 1: put a link in the show notes for how to 518 00:23:21,320 --> 00:23:23,560 Speaker 1: do that. Do that after you go ahead and get 519 00:23:23,560 --> 00:23:26,960 Speaker 1: that first credit card that you mentioned to kind of 520 00:23:27,000 --> 00:23:29,159 Speaker 1: help her, help walk her through that and know how 521 00:23:29,160 --> 00:23:33,199 Speaker 1: to set that up to obviously handle and wield that 522 00:23:33,240 --> 00:23:35,560 Speaker 1: credit card responsibly, and that might be one of those things. 523 00:23:35,600 --> 00:23:36,199 Speaker 2: Then freeze it. 524 00:23:36,280 --> 00:23:39,240 Speaker 1: That gets talked about later on typically is credit stuff, 525 00:23:39,520 --> 00:23:41,240 Speaker 1: so you might not have done a deep dive with 526 00:23:41,280 --> 00:23:44,000 Speaker 1: your daughter on credit and getting a credit card and 527 00:23:44,400 --> 00:23:47,440 Speaker 1: freezing credit and kind of having that discussion about the 528 00:23:48,119 --> 00:23:51,880 Speaker 1: positive sides and the dangers of credit is really important. 529 00:23:52,320 --> 00:23:54,800 Speaker 1: And then as she transitions into adulthood, I'd also help 530 00:23:54,840 --> 00:23:58,639 Speaker 1: her think through budgeting so those habits continue moving forward. 531 00:23:59,080 --> 00:24:01,639 Speaker 1: It's incredible to be to avoid student loan debt, to 532 00:24:01,680 --> 00:24:05,120 Speaker 1: have money save for her eventual retirement already too, but 533 00:24:05,160 --> 00:24:07,840 Speaker 1: we want her to avoid consumer debt as well, and 534 00:24:08,040 --> 00:24:10,080 Speaker 1: tracking is crucial on that front. So maybe it's why 535 00:24:10,160 --> 00:24:12,760 Speaker 1: NAB which is free for students that you need a budget, 536 00:24:12,800 --> 00:24:15,760 Speaker 1: it's one of our favorites. Or co pilot again, if 537 00:24:15,800 --> 00:24:18,080 Speaker 1: you're like an Apple person, Copilot has a really snazzy 538 00:24:18,119 --> 00:24:20,840 Speaker 1: app or even just to old school excel like whatever 539 00:24:21,160 --> 00:24:23,720 Speaker 1: floats her boat, but encourage her to track her money 540 00:24:23,760 --> 00:24:26,560 Speaker 1: so she can keep moving forward. Yeah, absolutely, regardless of 541 00:24:26,600 --> 00:24:29,159 Speaker 1: whether she's going off to college or is she's just 542 00:24:29,200 --> 00:24:31,879 Speaker 1: moving out, she is going to have more responsibility and 543 00:24:31,920 --> 00:24:34,440 Speaker 1: she's likely going to have a whole lot more in 544 00:24:34,560 --> 00:24:37,040 Speaker 1: it when it comes to expenses that you've likely been 545 00:24:37,080 --> 00:24:39,160 Speaker 1: covering for her. So the ability for her to track 546 00:24:39,200 --> 00:24:41,000 Speaker 1: her funds and to keep up with all of that, 547 00:24:41,480 --> 00:24:43,159 Speaker 1: I think that's going to be vital for you to 548 00:24:44,280 --> 00:24:47,080 Speaker 1: walk alongside her, right because yes, technically she is an 549 00:24:47,080 --> 00:24:48,520 Speaker 1: adult now, but that doesn't mean you have to throw 550 00:24:48,520 --> 00:24:50,480 Speaker 1: her into the deep end and hope that she's able 551 00:24:50,480 --> 00:24:53,040 Speaker 1: to swim. You can wade into the shallow end with her, 552 00:24:53,080 --> 00:24:55,480 Speaker 1: and obviously that's something that you've done. But now that 553 00:24:55,520 --> 00:24:57,919 Speaker 1: she's an adult, I think you have the opportunity to 554 00:24:58,560 --> 00:25:00,639 Speaker 1: give her a peek behind the curtain little bit and 555 00:25:00,680 --> 00:25:03,960 Speaker 1: to give her some of the technical details as to 556 00:25:04,000 --> 00:25:06,480 Speaker 1: how it does that things work. Obviously, I think you 557 00:25:06,560 --> 00:25:10,520 Speaker 1: set an incredible example as to like work ethic, how 558 00:25:10,600 --> 00:25:13,359 Speaker 1: does that we view money, like your attitude toward money. 559 00:25:13,560 --> 00:25:15,680 Speaker 1: But now it's like you can get pretty specific about 560 00:25:15,720 --> 00:25:17,760 Speaker 1: this is how we budget, Like you can share more 561 00:25:17,800 --> 00:25:21,399 Speaker 1: and more information with them, not only because it's going 562 00:25:21,480 --> 00:25:23,840 Speaker 1: to be helpful for her to learn how to do 563 00:25:23,880 --> 00:25:25,600 Speaker 1: this on her own, with her own money. But also 564 00:25:25,680 --> 00:25:28,240 Speaker 1: because the fact isn't like she's she's always going to 565 00:25:28,240 --> 00:25:30,320 Speaker 1: be your daughter, of course, but she's almost like with 566 00:25:30,359 --> 00:25:32,159 Speaker 1: her being an adult now, it's almost like you're you're 567 00:25:32,200 --> 00:25:34,720 Speaker 1: almost like Peers. She's her own person now, like she's 568 00:25:35,080 --> 00:25:38,120 Speaker 1: she's going to file her taxes on her own. Most 569 00:25:38,160 --> 00:25:40,960 Speaker 1: likely she's no longer going to be a dependent. So 570 00:25:41,040 --> 00:25:44,119 Speaker 1: the ability to to kind of walk through life a 571 00:25:44,119 --> 00:25:46,159 Speaker 1: little bit almost like Peers, I think is a is 572 00:25:46,200 --> 00:25:48,639 Speaker 1: a pretty cool thing. It's not something that neither of 573 00:25:48,960 --> 00:25:51,639 Speaker 1: Joel or I have experience with our uh yeah, with 574 00:25:51,920 --> 00:25:53,720 Speaker 1: our kids. But yeah, you'll be there, We'll both be 575 00:25:53,800 --> 00:25:56,879 Speaker 1: there in a number of years, something i'm certainly certainly 576 00:25:56,880 --> 00:25:59,400 Speaker 1: looking forward to. Yeah, it's a little scary because it's 577 00:25:59,400 --> 00:26:01,880 Speaker 1: just like, hopefully we've done a good job up till 578 00:26:01,920 --> 00:26:04,320 Speaker 1: that point. But it's sort of like what you said 579 00:26:04,320 --> 00:26:06,520 Speaker 1: about passing the torch. It's a you find out when 580 00:26:06,520 --> 00:26:08,560 Speaker 1: you can come out of the nest. Yeah, you find out. 581 00:26:08,720 --> 00:26:10,919 Speaker 1: But this is just a way for them to learn 582 00:26:11,240 --> 00:26:14,119 Speaker 1: some of the more concrete steps that they need to 583 00:26:14,160 --> 00:26:15,840 Speaker 1: take when it comes to handling money on their own. 584 00:26:15,920 --> 00:26:16,880 Speaker 2: Yeah, you know they talk. 585 00:26:16,680 --> 00:26:19,800 Speaker 1: About trust fund kids or somebody being born on third base. 586 00:26:20,280 --> 00:26:22,440 Speaker 1: This is like Trent's daughter was born on third base, 587 00:26:22,480 --> 00:26:25,399 Speaker 1: but in a different way, just based on the intentionality 588 00:26:25,640 --> 00:26:29,080 Speaker 1: of his intentionality. So it's not like she's set to 589 00:26:29,119 --> 00:26:31,960 Speaker 1: inherit billions, probably not even millions or anything like that, right, 590 00:26:31,800 --> 00:26:33,920 Speaker 1: but the knowledge has. 591 00:26:33,840 --> 00:26:34,680 Speaker 2: That's what's powerful. 592 00:26:35,160 --> 00:26:39,240 Speaker 1: And so I'd rather be born and have to make 593 00:26:39,280 --> 00:26:41,920 Speaker 1: my own way, but have some of those tools thanks 594 00:26:41,960 --> 00:26:44,640 Speaker 1: to my parents' for sure. So yeah, and I'm sure 595 00:26:44,640 --> 00:26:46,399 Speaker 1: she always she knows, she can always come back and 596 00:26:46,440 --> 00:26:49,040 Speaker 1: ask questions which she's not sure how to proceed. Just 597 00:26:49,080 --> 00:26:50,680 Speaker 1: make sure she knows that, make sure you tell her that. 598 00:26:50,800 --> 00:26:53,240 Speaker 1: And congrats to you and your daughter, Trent. All right, Matt, 599 00:26:53,320 --> 00:26:56,080 Speaker 1: let's get to our next question. This one is about 600 00:26:56,520 --> 00:26:59,399 Speaker 1: retiring early, and there's a rule about accessing your funds 601 00:26:59,480 --> 00:27:00,880 Speaker 1: that can be a little bit confusing. 602 00:27:01,320 --> 00:27:03,600 Speaker 5: He met and Joel. This is Tyler from San Diego, 603 00:27:04,000 --> 00:27:06,760 Speaker 5: big fan since the Poor not Poor Days. I have 604 00:27:06,800 --> 00:27:09,600 Speaker 5: a question about IRS rule of fifty five that I 605 00:27:09,600 --> 00:27:12,600 Speaker 5: haven't been able to figure out the answer to. It 606 00:27:12,680 --> 00:27:15,160 Speaker 5: states that you could retire at the year you turn 607 00:27:15,200 --> 00:27:18,080 Speaker 5: fifty five and take early distribution from your four to 608 00:27:18,119 --> 00:27:22,679 Speaker 5: one k of the current employer's plan. However, can't you 609 00:27:22,760 --> 00:27:25,400 Speaker 5: just roll over all your previous employer's plans into that 610 00:27:25,440 --> 00:27:28,120 Speaker 5: current employer plan and just have that be your big 611 00:27:28,200 --> 00:27:31,480 Speaker 5: lump sum at the end. Ideally, too, you could possibly 612 00:27:31,520 --> 00:27:35,639 Speaker 5: take a sabbatical from ages fifty fifty five, et cetera, 613 00:27:36,200 --> 00:27:38,960 Speaker 5: and then once you start working at fifty five, just 614 00:27:39,040 --> 00:27:41,960 Speaker 5: roll everything into that current plan. Would that work? Would 615 00:27:42,000 --> 00:27:43,480 Speaker 5: that meet the needs of the rule of fifty five? 616 00:27:44,160 --> 00:27:44,400 Speaker 2: Thanks? 617 00:27:44,440 --> 00:27:45,640 Speaker 5: Lock Ice, have a good. 618 00:27:45,600 --> 00:27:46,439 Speaker 2: Day, all right? 619 00:27:46,440 --> 00:27:49,359 Speaker 1: So Joel Tyler said something that we haven't mentioned in 620 00:27:49,400 --> 00:27:51,800 Speaker 1: a while. Poor not poor, which is what this podcast 621 00:27:52,000 --> 00:27:53,879 Speaker 1: used to be called, and the reason I bring it up. 622 00:27:53,960 --> 00:27:57,159 Speaker 1: Obviously Tyler he brought it up first, but also over 623 00:27:57,440 --> 00:27:59,480 Speaker 1: the holidays, I was just cleaning out the garage a 624 00:27:59,520 --> 00:28:02,119 Speaker 1: little bit and found the box where we have our 625 00:28:02,160 --> 00:28:05,639 Speaker 1: old porn up poor coozies. It made them. I didn't 626 00:28:05,640 --> 00:28:07,200 Speaker 1: know that it made the move when we moved out 627 00:28:07,200 --> 00:28:09,240 Speaker 1: of the city, and so I'm might have to bring 628 00:28:09,240 --> 00:28:11,640 Speaker 1: those up into the office and maybe we'll start giving 629 00:28:11,640 --> 00:28:13,360 Speaker 1: away some of these vintage. 630 00:28:13,080 --> 00:28:13,800 Speaker 2: Yes, we should. 631 00:28:13,920 --> 00:28:16,800 Speaker 1: We should mail some out vintage coozies that say porn 632 00:28:16,880 --> 00:28:19,280 Speaker 1: up poor. It's the number one podcast of craft beer 633 00:28:19,280 --> 00:28:22,960 Speaker 1: and personal fight. That's what it says on there. But Tyler, 634 00:28:22,960 --> 00:28:25,440 Speaker 1: we appreciate you listen to the show for so long. 635 00:28:25,720 --> 00:28:28,120 Speaker 1: And let's talk about the rule of fifty five. It's 636 00:28:28,240 --> 00:28:30,560 Speaker 1: it's a cool thing to know about for those of 637 00:28:30,600 --> 00:28:31,800 Speaker 1: you who want. 638 00:28:31,560 --> 00:28:32,439 Speaker 2: To retire early. 639 00:28:32,840 --> 00:28:35,480 Speaker 1: We love tax advantage retirement accounts, right, but if you 640 00:28:35,520 --> 00:28:38,000 Speaker 1: want the tax break, you gotta lock those dollars up 641 00:28:38,040 --> 00:28:40,760 Speaker 1: for a long time. And so because of that, some 642 00:28:40,800 --> 00:28:43,160 Speaker 1: folks who are interested in early retirement, they end up 643 00:28:43,160 --> 00:28:46,760 Speaker 1: focusing more on funneling dollars into their taxable brokerage account 644 00:28:46,760 --> 00:28:49,959 Speaker 1: instead because those dollars are going to be accessible before 645 00:28:50,120 --> 00:28:52,760 Speaker 1: the age of fifty nine and a half. It's understandable, 646 00:28:52,760 --> 00:28:55,000 Speaker 1: but I do hate the idea of missing out on 647 00:28:55,000 --> 00:28:57,040 Speaker 1: the tax break. Is because of that, you might want 648 00:28:57,080 --> 00:28:59,040 Speaker 1: to take maybe more of a hybrid approach with a 649 00:28:59,040 --> 00:29:02,120 Speaker 1: tax advantage account in addition to the brokerage account. But 650 00:29:02,680 --> 00:29:04,920 Speaker 1: the rule of fifty five it at least allows you 651 00:29:04,960 --> 00:29:08,760 Speaker 1: to feel a bit more comfortable utilizing your workplace retirement 652 00:29:08,800 --> 00:29:12,040 Speaker 1: account to a greater degree. If you are interested in 653 00:29:12,120 --> 00:29:16,000 Speaker 1: maybe kicking maybe clocking out a little early when it 654 00:29:16,000 --> 00:29:19,000 Speaker 1: comes to retirement. I get it, like I'm if you 655 00:29:19,000 --> 00:29:21,800 Speaker 1: want to retire at fifty five instead of sixty, then 656 00:29:21,880 --> 00:29:24,520 Speaker 1: the rule of fifty five can be a lifesaver, allowing 657 00:29:24,560 --> 00:29:26,800 Speaker 1: you to tap some of those funds in the specifics 658 00:29:26,840 --> 00:29:29,480 Speaker 1: boil down to this, If you turn fifty five during 659 00:29:29,480 --> 00:29:31,840 Speaker 1: the calendar year, you lose or leave your job, so 660 00:29:31,880 --> 00:29:34,080 Speaker 1: you don't think it fired. You can just leave too, 661 00:29:34,240 --> 00:29:36,440 Speaker 1: right in this rule kicks in. Just quit, yes, quit, 662 00:29:36,600 --> 00:29:40,000 Speaker 1: straight up walk out. You can begin taking distributions from 663 00:29:40,000 --> 00:29:42,920 Speaker 1: your four oh one K without paying the early withdrawal penalty. 664 00:29:43,200 --> 00:29:45,400 Speaker 1: You still low taxes on the money that you take out, 665 00:29:45,600 --> 00:29:48,480 Speaker 1: but you won't owe the additional ten percent penalty, which 666 00:29:48,520 --> 00:29:50,200 Speaker 1: is a big savings And that's right. So, while this 667 00:29:50,240 --> 00:29:52,640 Speaker 1: is a fun little tax loophole, though we don't actually 668 00:29:52,680 --> 00:29:55,160 Speaker 1: think that most folks should do it, Why well, the 669 00:29:55,200 --> 00:29:57,600 Speaker 1: longer you keep those dollars invested, the better. Right, If 670 00:29:57,640 --> 00:30:00,000 Speaker 1: you tap them too early, you're missing out on years 671 00:30:00,120 --> 00:30:03,920 Speaker 1: potential compounding. It's really only something that well capitalized early 672 00:30:03,960 --> 00:30:06,880 Speaker 1: retirees should take advantage of. After many, many years of 673 00:30:06,920 --> 00:30:09,840 Speaker 1: putting his eye big bucks in those accounts basically. And 674 00:30:09,880 --> 00:30:11,520 Speaker 1: I don't think you are tyler. I just don't want 675 00:30:11,520 --> 00:30:13,719 Speaker 1: you to make this decision flipidly. If you've planned, some 676 00:30:13,760 --> 00:30:15,440 Speaker 1: people might have just perked their ears up and said, 677 00:30:15,480 --> 00:30:17,680 Speaker 1: what huh, I can tamp out those are funds earlier 678 00:30:17,680 --> 00:30:20,360 Speaker 1: than before. Great, I have five years early, totally gonna 679 00:30:20,360 --> 00:30:21,720 Speaker 1: do it. Sounds good. But if you've only got one 680 00:30:21,800 --> 00:30:24,160 Speaker 1: hundred k in there and it's not, man, I get 681 00:30:24,200 --> 00:30:26,160 Speaker 1: you very fun. When you're quitting your job earlier than 682 00:30:26,160 --> 00:30:28,480 Speaker 1: you otherwise were going to, Yeah, you might not have 683 00:30:28,600 --> 00:30:30,600 Speaker 1: enough to last you for all those retirement years that 684 00:30:30,640 --> 00:30:32,640 Speaker 1: you're gonna need that money. Yeah, And what you said 685 00:30:32,680 --> 00:30:35,240 Speaker 1: like you were mentioning the compounding that takes place, And 686 00:30:35,280 --> 00:30:37,520 Speaker 1: some folks might be thinking, well, you're really talking about 687 00:30:37,720 --> 00:30:39,880 Speaker 1: five years. Let's just say five or maybe even a 688 00:30:39,880 --> 00:30:43,160 Speaker 1: few more years of compounding. But the thing is those 689 00:30:43,160 --> 00:30:45,480 Speaker 1: are the most important years when it comes to compounding. 690 00:30:46,040 --> 00:30:48,400 Speaker 1: You don't become the millionaire out in those first five years, 691 00:30:48,720 --> 00:30:51,120 Speaker 1: or I should say most people don't. It's when you're 692 00:30:51,160 --> 00:30:53,600 Speaker 1: really close to that and that compounding interest builds and 693 00:30:53,840 --> 00:30:57,120 Speaker 1: that snowball continues to roll, the size of it increases, 694 00:30:57,520 --> 00:31:02,600 Speaker 1: significantly in those those last few years. But this is something. Yeah, 695 00:31:02,640 --> 00:31:04,560 Speaker 1: so I like how you approach that, Jill, because just 696 00:31:04,640 --> 00:31:07,080 Speaker 1: because you can do this, it doesn't necessarily mean that 697 00:31:07,080 --> 00:31:10,160 Speaker 1: you should. But that being said, if you have had 698 00:31:10,320 --> 00:31:13,400 Speaker 1: an extremely high savings rate, you've got a large enough 699 00:31:13,440 --> 00:31:15,680 Speaker 1: nest egg to start drawing it down before you reach 700 00:31:15,920 --> 00:31:18,680 Speaker 1: full retirement age, well, then this is a fantastic tax 701 00:31:18,880 --> 00:31:21,480 Speaker 1: loophole to take advantage of. If you're had a money listener, 702 00:31:21,520 --> 00:31:23,120 Speaker 1: and you've been listening since the porn out poor days 703 00:31:23,120 --> 00:31:27,440 Speaker 1: perhaps and maybe even really getting after it, it's worth 704 00:31:27,800 --> 00:31:30,320 Speaker 1: taking a look at because it gives you the opportunity 705 00:31:30,360 --> 00:31:32,200 Speaker 1: to get that tax break that's offered to you but 706 00:31:32,280 --> 00:31:35,600 Speaker 1: still have access to those dollars before waiting until you're 707 00:31:35,600 --> 00:31:37,840 Speaker 1: a fifty nine and a half. But to utilize the 708 00:31:37,880 --> 00:31:40,600 Speaker 1: strategy properly, it does take some attention to detail. Yeah, 709 00:31:40,640 --> 00:31:42,920 Speaker 1: and okay, let's get to the super detailed part of 710 00:31:43,120 --> 00:31:46,080 Speaker 1: Tyler's question. Basically, he's asking, can you roll over an 711 00:31:46,160 --> 00:31:48,600 Speaker 1: old four oh one k into your current employer's four 712 00:31:48,640 --> 00:31:51,000 Speaker 1: oh one k and draw down now on that much 713 00:31:51,040 --> 00:31:53,160 Speaker 1: higher amount. Let's say you had one job for a decade, 714 00:31:53,400 --> 00:31:57,080 Speaker 1: another job for a decade, and then now you're fifty three, 715 00:31:57,400 --> 00:31:59,560 Speaker 1: getting close to this rule of fifty five area, you've 716 00:31:59,560 --> 00:32:01,480 Speaker 1: got a four one K with your current employer. Can 717 00:32:01,520 --> 00:32:04,080 Speaker 1: you actually roll over those old borrow one ks into 718 00:32:04,120 --> 00:32:06,680 Speaker 1: the new one and then when you leave that employer 719 00:32:06,960 --> 00:32:08,280 Speaker 1: tap all those funds early. 720 00:32:08,920 --> 00:32:09,480 Speaker 2: Yes you can. 721 00:32:10,160 --> 00:32:13,600 Speaker 1: Yeah, so that's kind of crazy, but yes, that is 722 00:32:13,600 --> 00:32:15,840 Speaker 1: something you are allowed to do. So assuming that your 723 00:32:15,840 --> 00:32:18,760 Speaker 1: new employer's plan is stellar, it's got low fees, great 724 00:32:18,760 --> 00:32:21,680 Speaker 1: investment options for index investing, then it can make a 725 00:32:21,680 --> 00:32:23,960 Speaker 1: lot of sense to roll over any previous four to 726 00:32:24,000 --> 00:32:26,360 Speaker 1: one K plans into your new one in order to 727 00:32:26,400 --> 00:32:29,240 Speaker 1: have as many options available to future you as possible. 728 00:32:29,560 --> 00:32:31,960 Speaker 1: Plus it's just nice not to have to keep up 729 00:32:32,000 --> 00:32:34,479 Speaker 1: with a bunch of different logins spread all over the internet. 730 00:32:34,520 --> 00:32:38,000 Speaker 1: But exactly, I'm also just a little nervous though, Matt. 731 00:32:38,000 --> 00:32:39,880 Speaker 1: If you roll all of your four one ks in 732 00:32:39,920 --> 00:32:41,840 Speaker 1: and you think of all those funds as fair game, 733 00:32:42,240 --> 00:32:45,320 Speaker 1: that again you're not thinking long and hard about a 734 00:32:45,360 --> 00:32:48,720 Speaker 1: lot of those other future retirement years you're gonna have. Hopefully, 735 00:32:48,760 --> 00:32:51,920 Speaker 1: Tyler's got decades after he turns fifty five and decades 736 00:32:51,920 --> 00:32:55,600 Speaker 1: after he turns sixty, so just don't. I wouldn't think 737 00:32:55,640 --> 00:32:57,880 Speaker 1: about it as like a slush fund. Woo, now it's 738 00:32:57,880 --> 00:33:00,160 Speaker 1: time for me to take the whole thing. Yeah, it's 739 00:33:00,200 --> 00:33:02,160 Speaker 1: good to know that that that is an option for 740 00:33:02,200 --> 00:33:03,960 Speaker 1: about you know, when you do turn fifty five. But 741 00:33:04,000 --> 00:33:06,680 Speaker 1: that being said, I feel like I don't know something 742 00:33:06,680 --> 00:33:09,160 Speaker 1: about earlier retirement. I think it really appeals to you 743 00:33:09,200 --> 00:33:11,720 Speaker 1: when you're younger because for I and it maybe I'm 744 00:33:11,760 --> 00:33:13,520 Speaker 1: just speaking out of my own experience, because when I 745 00:33:13,560 --> 00:33:17,640 Speaker 1: first discovered financial independence, and i'll let it entailed, I thought, 746 00:33:17,680 --> 00:33:20,800 Speaker 1: oh man, this is I'm doing this baby Like, I'm 747 00:33:20,800 --> 00:33:21,560 Speaker 1: gonna go after. 748 00:33:21,400 --> 00:33:22,440 Speaker 2: It real hard. 749 00:33:22,520 --> 00:33:25,160 Speaker 1: But then, honestly, the older I get, the less important 750 00:33:25,160 --> 00:33:28,320 Speaker 1: early retirement becomes. Because I think, like, even by the 751 00:33:28,360 --> 00:33:31,880 Speaker 1: time I'm older, I still think I'm gonna work somehow, 752 00:33:31,920 --> 00:33:33,920 Speaker 1: like even if it's just like a parts. Do we 753 00:33:33,920 --> 00:33:36,400 Speaker 1: we talked about this, like over at our house or 754 00:33:36,440 --> 00:33:38,000 Speaker 1: did we talk about this on the show talking about 755 00:33:38,040 --> 00:33:39,960 Speaker 1: some of the different different jobs that we might hold 756 00:33:40,000 --> 00:33:40,600 Speaker 1: when we're older. 757 00:33:40,680 --> 00:33:42,640 Speaker 2: Oh, like I've joked about you're going to be a barista. 758 00:33:42,760 --> 00:33:44,840 Speaker 1: Yeah, I've joked about either I'm either gonna work part 759 00:33:44,840 --> 00:33:48,480 Speaker 1: time at like the gym, or pulling espresso shots, or 760 00:33:48,520 --> 00:33:50,880 Speaker 1: even being like a like a park ranger or something 761 00:33:50,880 --> 00:33:51,040 Speaker 1: like that. 762 00:33:51,040 --> 00:33:52,320 Speaker 2: Doesn't sounds great? 763 00:33:52,360 --> 00:33:55,000 Speaker 1: Sounds so great at least part time to be able 764 00:33:55,000 --> 00:33:57,880 Speaker 1: to cover some of your living expenses to where it's 765 00:33:57,920 --> 00:34:00,960 Speaker 1: not necessary to draw on any of these retirement funds earlier, 766 00:34:01,000 --> 00:34:02,480 Speaker 1: because you kind of have some of these smaller jobs 767 00:34:02,520 --> 00:34:04,800 Speaker 1: to hold you over. So what about you, what's your 768 00:34:05,080 --> 00:34:08,000 Speaker 1: quote unquote retirement job that to you? 769 00:34:08,040 --> 00:34:08,520 Speaker 2: At least? 770 00:34:08,560 --> 00:34:10,960 Speaker 1: So I say those things, not knowing what future me 771 00:34:11,080 --> 00:34:13,759 Speaker 1: is going to like right now, I say those things 772 00:34:13,760 --> 00:34:15,520 Speaker 1: and that sounds appealing. I'm like, oh, yeah, I could 773 00:34:15,520 --> 00:34:19,839 Speaker 1: see myself as like an older gentleman doing some. 774 00:34:19,800 --> 00:34:22,560 Speaker 2: Of those gigs for you. What would that be right. 775 00:34:22,400 --> 00:34:24,200 Speaker 1: Now to you? Maybe a disc golf caddy. What do 776 00:34:24,200 --> 00:34:28,320 Speaker 1: you think carry somebody else's discs? Watch the pros play 777 00:34:28,719 --> 00:34:30,319 Speaker 1: you just want to stand there and just chat chat 778 00:34:30,320 --> 00:34:32,880 Speaker 1: them up. Yeah, pretty much as opposed to actually throwing 779 00:34:33,040 --> 00:34:33,680 Speaker 1: your own discs. 780 00:34:33,680 --> 00:34:36,600 Speaker 2: That sounds like something might be into Tyler. It's just 781 00:34:37,239 --> 00:34:38,520 Speaker 2: some food for thought. I don't know. 782 00:34:38,560 --> 00:34:39,840 Speaker 1: I think that's a good way of thinking about it. 783 00:34:39,840 --> 00:34:42,120 Speaker 1: It's good to know that that exists, but I wouldn't 784 00:34:42,120 --> 00:34:45,040 Speaker 1: fixate on it too much. But another detail worth considering 785 00:34:45,080 --> 00:34:46,560 Speaker 1: though with the ruler of fifty five is that if 786 00:34:46,600 --> 00:34:49,359 Speaker 1: you made so this is more I guess for folks 787 00:34:49,360 --> 00:34:52,520 Speaker 1: who see who are in the early fifties and they're thinking, 788 00:34:52,560 --> 00:34:55,040 Speaker 1: oh man, this is about to become available to me, 789 00:34:55,080 --> 00:34:56,400 Speaker 1: this is something I'm going to do. Well, if you 790 00:34:56,440 --> 00:34:59,040 Speaker 1: made a significant amount of money in the year that 791 00:34:59,040 --> 00:35:01,680 Speaker 1: you end up separating from your job, any money taken 792 00:35:01,719 --> 00:35:03,240 Speaker 1: out of that four one K could. 793 00:35:03,040 --> 00:35:04,520 Speaker 2: Be subject to higher taxes. 794 00:35:04,800 --> 00:35:06,439 Speaker 1: Just because of that, you might want to wait until 795 00:35:06,440 --> 00:35:09,160 Speaker 1: the following calendar year to start taking money from your 796 00:35:09,160 --> 00:35:10,759 Speaker 1: four O one K so that you're just. 797 00:35:10,719 --> 00:35:14,080 Speaker 2: Not taxes as at quite as high of a rate. 798 00:35:14,840 --> 00:35:16,719 Speaker 1: And also something else to keep in mind is that 799 00:35:16,800 --> 00:35:20,040 Speaker 1: not all this just because the IRS allows you to 800 00:35:20,040 --> 00:35:21,680 Speaker 1: do this, because it's the rule of fifty five. It's 801 00:35:21,719 --> 00:35:24,880 Speaker 1: again it's IRS's rule. Just because they allow that doesn't 802 00:35:24,920 --> 00:35:27,480 Speaker 1: mean that all employers have to offer that. And so 803 00:35:27,560 --> 00:35:30,640 Speaker 1: that's something else I guess for the early fifties individual 804 00:35:30,640 --> 00:35:33,040 Speaker 1: who might be taking or considering taking a new job 805 00:35:33,640 --> 00:35:35,279 Speaker 1: for the next few years that you're going to ride 806 00:35:35,280 --> 00:35:38,160 Speaker 1: off into the sunset, well, they don't have to offer 807 00:35:38,200 --> 00:35:40,600 Speaker 1: those early withdrawals as an option, and so that's something 808 00:35:40,800 --> 00:35:43,120 Speaker 1: that's some little fine print that you want to make 809 00:35:43,160 --> 00:35:45,799 Speaker 1: sure that you have available to you if that's something 810 00:35:45,800 --> 00:35:48,759 Speaker 1: that you want to consider. Yeah, and it's also important 811 00:35:48,800 --> 00:35:51,640 Speaker 1: to mention that even if you leave your employer at 812 00:35:51,640 --> 00:35:53,799 Speaker 1: fifty five, you start drawing down some of that four 813 00:35:53,840 --> 00:35:56,160 Speaker 1: oh one K because you can, you still don't get 814 00:35:56,200 --> 00:35:59,120 Speaker 1: another job. Actually, that's one of the coolest parts of it. Yeah, 815 00:35:59,200 --> 00:36:01,880 Speaker 1: So if it's a way to fund a longer sabbatical 816 00:36:02,160 --> 00:36:04,359 Speaker 1: and you're like, I still want to work for another seven, eight, 817 00:36:04,400 --> 00:36:06,319 Speaker 1: ten years, you can change your mind. You can totally 818 00:36:06,400 --> 00:36:07,840 Speaker 1: change your mind and guess what, you don't have to 819 00:36:07,840 --> 00:36:09,560 Speaker 1: give the money back into your four K or anything 820 00:36:09,600 --> 00:36:11,719 Speaker 1: like that. You can just have used it in no harm, 821 00:36:11,760 --> 00:36:13,759 Speaker 1: no foul, no big deal. So it is. 822 00:36:13,880 --> 00:36:17,560 Speaker 2: It is interesting. You gotta love the American tax code exactly. 823 00:36:17,600 --> 00:36:20,400 Speaker 1: There's all all sorts of loopholes to consider. But Tyler, 824 00:36:20,440 --> 00:36:22,640 Speaker 1: we hope that gets you pointed in the right direction. Joel, 825 00:36:22,840 --> 00:36:25,400 Speaker 1: We've got a little more to get to and this 826 00:36:25,480 --> 00:36:28,040 Speaker 1: is going to be especially putting into any employees who 827 00:36:28,160 --> 00:36:30,360 Speaker 1: may not have a four to one K available to 828 00:36:30,560 --> 00:36:31,840 Speaker 1: them through their employer. 829 00:36:32,080 --> 00:36:42,160 Speaker 2: We'll get to that right after this. All right, man, 830 00:36:42,200 --> 00:36:42,480 Speaker 2: we're back. 831 00:36:42,560 --> 00:36:44,600 Speaker 1: Let's he to our Facebook question of the week. There's 832 00:36:44,719 --> 00:36:47,080 Speaker 1: always people posting in the how to money Facebook group 833 00:36:47,200 --> 00:36:50,120 Speaker 1: light Clockwork regularly asking each other for advice. It's a 834 00:36:50,120 --> 00:36:52,120 Speaker 1: beautiful like they don't sleep or anything. I know, Like, 835 00:36:52,120 --> 00:36:52,879 Speaker 1: what are these people doing? 836 00:36:52,960 --> 00:36:53,120 Speaker 3: Yeah? 837 00:36:53,160 --> 00:36:56,520 Speaker 1: On the internet, nobody sleeps, okay. But this one comes 838 00:36:56,520 --> 00:37:00,239 Speaker 1: from anonymous who asked, I work for a small business 839 00:37:00,280 --> 00:37:03,080 Speaker 1: to offer a retirement plan. We have about thirty employees. 840 00:37:03,320 --> 00:37:05,880 Speaker 1: Can anyone recommend how to begin a starter four oh 841 00:37:05,920 --> 00:37:08,960 Speaker 1: one k under the Secure Act two point zero? Who 842 00:37:08,960 --> 00:37:10,400 Speaker 1: offers a starter for roh one k? 843 00:37:10,719 --> 00:37:12,320 Speaker 2: Thanks? And this is a great question. 844 00:37:12,480 --> 00:37:15,799 Speaker 1: And the Secure Act two point zero did make it 845 00:37:15,840 --> 00:37:18,320 Speaker 1: easier for some of these small businesses to in the 846 00:37:18,360 --> 00:37:21,399 Speaker 1: same industry, to affiliate with each other to offer four 847 00:37:21,400 --> 00:37:24,520 Speaker 1: to one ks to their employees. But the cool thing 848 00:37:24,600 --> 00:37:28,600 Speaker 1: is even before that, there are great low cost providers 849 00:37:28,600 --> 00:37:29,720 Speaker 1: out there that we should talk about. 850 00:37:29,719 --> 00:37:30,879 Speaker 2: Matt. Yeah, they've been around. 851 00:37:30,880 --> 00:37:33,319 Speaker 1: They've kind of been doing this thing already for some reason, though, 852 00:37:33,360 --> 00:37:35,719 Speaker 1: they just fly under the radar. Yeah. Well it wasn't 853 00:37:35,760 --> 00:37:38,439 Speaker 1: always that way though. For many years it was really 854 00:37:38,520 --> 00:37:42,880 Speaker 1: hard for small businesses to offer competitive benefits. It was honestly, 855 00:37:42,880 --> 00:37:47,560 Speaker 1: it was just prohibitively expensive administrative costs. Yes, to give 856 00:37:47,800 --> 00:37:51,520 Speaker 1: employees healthcare or four oh one k, It was like, guys, 857 00:37:51,560 --> 00:37:53,200 Speaker 1: I wish we could, and I wish it would help 858 00:37:53,200 --> 00:37:55,640 Speaker 1: make us more competitive, but the overhead is so severe 859 00:37:55,920 --> 00:37:57,719 Speaker 1: that we just can't. And at least on the four 860 00:37:57,760 --> 00:37:59,560 Speaker 1: one k frount. I don't know about the healthcare front, 861 00:38:00,000 --> 00:38:01,280 Speaker 1: but at least on the four to one K front, 862 00:38:01,480 --> 00:38:04,040 Speaker 1: that's more of an excuse than reality these days. 863 00:38:04,200 --> 00:38:04,880 Speaker 2: Yeah, exactly. 864 00:38:04,960 --> 00:38:07,359 Speaker 1: Yeah, if we're talking about a smaller business they only 865 00:38:07,360 --> 00:38:09,200 Speaker 1: have a handful of employees, Well, that was the trade 866 00:38:09,200 --> 00:38:12,320 Speaker 1: off that those employees had to make. No retirement account, 867 00:38:12,320 --> 00:38:14,960 Speaker 1: no match, They had to just hope that their partner 868 00:38:15,560 --> 00:38:18,160 Speaker 1: that they had one and maybe just be content going 869 00:38:18,400 --> 00:38:21,240 Speaker 1: all in on their roth IRA and then just maybe 870 00:38:21,320 --> 00:38:24,080 Speaker 1: tossing some investment dollars into their taxable brokerage account like 871 00:38:24,080 --> 00:38:29,840 Speaker 1: we just discussed. But no longer, because the democratization of investing, 872 00:38:30,560 --> 00:38:32,799 Speaker 1: it's not only come to the individual investor, but it's 873 00:38:32,840 --> 00:38:36,000 Speaker 1: also come to the aid of small businesses as well. 874 00:38:36,120 --> 00:38:37,279 Speaker 2: Yeah, and at least on my. 875 00:38:37,360 --> 00:38:41,080 Speaker 1: Writer, there are two specific places that are worth mentioning right. 876 00:38:41,120 --> 00:38:45,000 Speaker 1: There are a handful of places where business owners can turn. 877 00:38:45,400 --> 00:38:48,560 Speaker 1: But our two favorites are Betterment and Guideline. And so 878 00:38:48,680 --> 00:38:51,960 Speaker 1: Betterment has a consumer facing product, so if you're just 879 00:38:52,000 --> 00:38:54,640 Speaker 1: a random individual, you can open up your IRA or 880 00:38:54,680 --> 00:38:58,520 Speaker 1: taxable brokerage account with Betterment and they've got a great product. 881 00:38:58,920 --> 00:39:02,200 Speaker 1: But they also offer something for the small business world. 882 00:39:02,440 --> 00:39:04,480 Speaker 1: And the products that each of these companies offer, they're 883 00:39:04,480 --> 00:39:07,560 Speaker 1: actually pretty similar in a lot of ways, including on 884 00:39:07,600 --> 00:39:10,560 Speaker 1: the pricing front. It's worth looking at both to see 885 00:39:10,600 --> 00:39:13,720 Speaker 1: which one is most cost effective for your specific company. 886 00:39:14,040 --> 00:39:16,520 Speaker 1: But I would say Betterment has a slightly higher monthly 887 00:39:16,560 --> 00:39:19,360 Speaker 1: fee but a smaller per employee charge. That's kind of 888 00:39:19,360 --> 00:39:22,600 Speaker 1: how it works is there's typically a fee of seventy 889 00:39:22,600 --> 00:39:25,080 Speaker 1: five one hundred and twenty five dollars a month, and 890 00:39:25,120 --> 00:39:27,560 Speaker 1: then something like six or seven or eight dollars per 891 00:39:27,600 --> 00:39:30,640 Speaker 1: employee depending on which package you choose. So you know, 892 00:39:30,719 --> 00:39:33,120 Speaker 1: run the numbers and check on the out the specific 893 00:39:33,160 --> 00:39:35,759 Speaker 1: benefits that each one has to see which one is 894 00:39:35,760 --> 00:39:37,680 Speaker 1: a better fit. We don't think you can go wrong 895 00:39:37,719 --> 00:39:40,680 Speaker 1: with either truly. Yeah or and even don't forget Fidelity 896 00:39:40,719 --> 00:39:43,920 Speaker 1: as well. I mean, Fidelity always has a cost effective 897 00:39:43,920 --> 00:39:46,279 Speaker 1: options as well, and they've got a calculator. We can 898 00:39:46,320 --> 00:39:48,080 Speaker 1: go on there inner some details in and they'll give 899 00:39:48,080 --> 00:39:50,680 Speaker 1: you an estimate as to how much you should be paying, 900 00:39:50,680 --> 00:39:52,840 Speaker 1: what you could expect to pay. And of course this 901 00:39:52,960 --> 00:39:56,359 Speaker 1: is assuming that I guess this person anonymous person asked, 902 00:39:56,400 --> 00:39:59,279 Speaker 1: so they got like something like thirty employees or didn't 903 00:39:59,280 --> 00:40:01,480 Speaker 1: mention Fidelity all that we've got our four one K 904 00:40:01,560 --> 00:40:04,200 Speaker 1: set up through Fidelity, but of course it well I 905 00:40:04,200 --> 00:40:05,879 Speaker 1: shouldn't say. Of course you and I are the only 906 00:40:05,920 --> 00:40:09,799 Speaker 1: two actual wt W two employees and so therefore we're 907 00:40:09,800 --> 00:40:12,279 Speaker 1: self employed. So because of that, we have what's called 908 00:40:12,320 --> 00:40:14,960 Speaker 1: either a self employed four one K or also known 909 00:40:15,000 --> 00:40:19,400 Speaker 1: as a solo four one K, and there are zero fees. 910 00:40:19,640 --> 00:40:22,320 Speaker 1: There's zero cost when you are opening one of those 911 00:40:22,480 --> 00:40:25,040 Speaker 1: with Fidelity. So just something out there for all of 912 00:40:25,080 --> 00:40:28,839 Speaker 1: the all of the emerging solopreneurs out there. 913 00:40:29,520 --> 00:40:31,160 Speaker 2: And by the way, if you work at. 914 00:40:31,000 --> 00:40:34,040 Speaker 1: A smaller business, if you work for a smaller employer, 915 00:40:34,400 --> 00:40:36,520 Speaker 1: it might make sense to bring some of these services 916 00:40:36,560 --> 00:40:40,480 Speaker 1: to their attention because it's a way for even like 917 00:40:40,480 --> 00:40:42,879 Speaker 1: like a small business anything from like five to even 918 00:40:42,920 --> 00:40:46,120 Speaker 1: fifty but allow the It allows these businesses to offer 919 00:40:46,320 --> 00:40:49,759 Speaker 1: these competitive benefits and retain talent. But just like a 920 00:40:49,760 --> 00:40:51,840 Speaker 1: lot of employers, they just don't know that products like 921 00:40:51,880 --> 00:40:55,600 Speaker 1: this exist these days. They're focused on whatever it is 922 00:40:55,640 --> 00:40:57,560 Speaker 1: that you do right then it may not be a 923 00:40:57,600 --> 00:40:59,440 Speaker 1: product or service that you guys can Yeah, they're not 924 00:40:59,480 --> 00:41:03,320 Speaker 1: pouring a whole have time and attention into HR. Perhaps 925 00:41:03,120 --> 00:41:06,560 Speaker 1: they probably looked years and years ago and they were like, huh, 926 00:41:06,800 --> 00:41:08,000 Speaker 1: this seems pretty really expensive. 927 00:41:08,000 --> 00:41:09,000 Speaker 2: That's just not going to be who we are. 928 00:41:09,080 --> 00:41:11,960 Speaker 1: Yeah, yeah, exactly that that's not a part of the 929 00:41:12,000 --> 00:41:14,920 Speaker 1: fabric of our company. It's like just I don't know, 930 00:41:14,960 --> 00:41:16,719 Speaker 1: it's worth mentioning that. And you don't need to be 931 00:41:17,080 --> 00:41:18,919 Speaker 1: like a jerk about it. You don't need to throw 932 00:41:18,920 --> 00:41:20,879 Speaker 1: your boss under the bus for not offering a four 933 00:41:20,880 --> 00:41:23,000 Speaker 1: to one k yet. But you just might want to mention, 934 00:41:23,280 --> 00:41:26,640 Speaker 1: you know that these sites exist and that they're incredibly inexpensive, 935 00:41:27,080 --> 00:41:29,399 Speaker 1: and they might thank you, you know, they might give 936 00:41:29,440 --> 00:41:31,680 Speaker 1: you a little bonus for showing some initiative. And I 937 00:41:31,680 --> 00:41:36,239 Speaker 1: think your fellow employers, employees, they will, uh, they'll be 938 00:41:36,280 --> 00:41:39,239 Speaker 1: incredibly thankful. Yeah, car for you to bring this up 939 00:41:39,280 --> 00:41:41,279 Speaker 1: as well, because it's going to impact their retirement, the 940 00:41:41,320 --> 00:41:43,800 Speaker 1: amount of money that they are able to set aside. 941 00:41:43,840 --> 00:41:45,920 Speaker 1: They might carry you out on their shoulders, like Rudy 942 00:41:46,000 --> 00:41:49,520 Speaker 1: Rudiger in the movie Rudy in All Time Plastic. At 943 00:41:49,560 --> 00:41:51,520 Speaker 1: the very least, they'll throw a pizza party right in 944 00:41:51,560 --> 00:41:53,680 Speaker 1: your honor. But I think that's going to be it 945 00:41:53,760 --> 00:41:57,760 Speaker 1: for listener questions. Let's get back to the beer, Joel, 946 00:41:57,840 --> 00:42:00,959 Speaker 1: that you and I enjoyed. Me didn't drink. You didn't 947 00:42:00,960 --> 00:42:05,319 Speaker 1: finish your beer yet because I'm feeling like trash. Yeah, 948 00:42:05,400 --> 00:42:07,520 Speaker 1: I don't blame you, dude, although I hate it for 949 00:42:07,560 --> 00:42:10,080 Speaker 1: you because this is such I can tell I had 950 00:42:10,080 --> 00:42:12,799 Speaker 1: a couple of SIPs, even against the doctor's orders, and 951 00:42:12,880 --> 00:42:14,239 Speaker 1: it is a delicious beer. 952 00:42:14,440 --> 00:42:16,560 Speaker 2: Sadly though my palate is just not up there. 953 00:42:16,960 --> 00:42:19,520 Speaker 1: I'm sure it's completely blow. This beer was lost on 954 00:42:19,600 --> 00:42:21,640 Speaker 1: me a little bit, and that really bumps me. This 955 00:42:21,760 --> 00:42:24,000 Speaker 1: was I'll say, this is a really really good I pa, 956 00:42:24,080 --> 00:42:26,080 Speaker 1: it's got it. I don't know, maybe the fact that 957 00:42:26,080 --> 00:42:28,440 Speaker 1: it says green on here, but the hops that had 958 00:42:28,440 --> 00:42:31,080 Speaker 1: a whole lot of vegetable notes, right, And so sometimes 959 00:42:31,080 --> 00:42:33,400 Speaker 1: you get an ipa, especially in New England, hazy like 960 00:42:33,440 --> 00:42:36,720 Speaker 1: this and it can come across as sticky candy sweet, 961 00:42:37,320 --> 00:42:40,480 Speaker 1: and that's like too tropical. Yeah yeah, and that's not 962 00:42:40,520 --> 00:42:42,319 Speaker 1: what was going on here. This had more of the 963 00:42:42,320 --> 00:42:44,520 Speaker 1: sweetness that you get when you when you roast them 964 00:42:44,520 --> 00:42:46,840 Speaker 1: broccoli on a roasting pan and the oven. You know 965 00:42:46,880 --> 00:42:49,720 Speaker 1: that kind of sweetness. Oh yeah, that's what this beer 966 00:42:49,800 --> 00:42:52,080 Speaker 1: was rocking. And so I don't think I'll never gonna 967 00:42:52,080 --> 00:42:54,200 Speaker 1: get tired of IPAs, but especially if they're making them 968 00:42:54,239 --> 00:42:57,440 Speaker 1: like this. Rhianna, thank you so much for sending this 969 00:42:57,480 --> 00:42:59,400 Speaker 1: one our way, and we'll make sure to link to 970 00:42:59,480 --> 00:43:02,440 Speaker 1: any of the resources we mentioned during this episode, up 971 00:43:02,520 --> 00:43:05,040 Speaker 1: in the show notes, up on the website at howomoney 972 00:43:05,280 --> 00:43:07,640 Speaker 1: dot com. And Buddy, I think that's gonna be it 973 00:43:07,680 --> 00:43:08,160 Speaker 1: for this one. 974 00:43:08,280 --> 00:43:09,239 Speaker 2: Until next time. 975 00:43:09,440 --> 00:43:27,040 Speaker 1: Best Friends Out, Best Friends Out. As Joel collapses, your 976 00:43:27,080 --> 00:43:29,080 Speaker 1: head is like conks down on the table, dude,