1 00:00:00,080 --> 00:00:03,080 Speaker 1: Welcome to How the Money. I'm Joel and I am Matt. 2 00:00:03,120 --> 00:00:07,120 Speaker 1: In today's warning is to flee before you're fleeced crappy 3 00:00:07,200 --> 00:00:28,680 Speaker 1: financial products you need to avoid. Yeah. You know, over 4 00:00:28,720 --> 00:00:32,760 Speaker 1: the course of creating over episodes of How to Money, 5 00:00:32,840 --> 00:00:36,120 Speaker 1: we have covered our fair share of crappy financial products, 6 00:00:36,360 --> 00:00:39,919 Speaker 1: whether it's dedicating an entire episode to one in particular, 7 00:00:40,000 --> 00:00:41,239 Speaker 1: or a lot of times. I guess we we hear 8 00:00:41,240 --> 00:00:44,600 Speaker 1: from listeners as they send in their questions and they say, hey, 9 00:00:45,040 --> 00:00:48,240 Speaker 1: how should this particular financial products find its way into 10 00:00:48,400 --> 00:00:51,840 Speaker 1: my portfolio or into my financial life? Uh, and so, yeah, 11 00:00:51,880 --> 00:00:53,479 Speaker 1: we kind of hit them here and there, but I 12 00:00:53,520 --> 00:00:56,040 Speaker 1: am excited to dedicate an entire episode here. We're we're 13 00:00:56,040 --> 00:00:57,840 Speaker 1: gonna go ahead and head you off at the past. 14 00:00:57,840 --> 00:01:00,680 Speaker 1: We're gonna cover a bunch of different crappy initial products 15 00:01:00,680 --> 00:01:03,680 Speaker 1: and why it is that you need to avoid them. Yeah, 16 00:01:03,720 --> 00:01:05,880 Speaker 1: there's a bunch that we want to talk about on 17 00:01:05,920 --> 00:01:08,240 Speaker 1: today's episode, and some of which you probably heard of, 18 00:01:08,280 --> 00:01:10,080 Speaker 1: some of which you probably haven't, and some of what 19 00:01:10,160 --> 00:01:12,399 Speaker 1: you may not know how nefarious they are or how 20 00:01:12,440 --> 00:01:14,760 Speaker 1: they work underneath the surface. We're gonna get to all 21 00:01:14,800 --> 00:01:16,760 Speaker 1: that and then just actually kind of some ways to 22 00:01:17,040 --> 00:01:20,119 Speaker 1: spot a crappy financial product because there are other ones 23 00:01:20,160 --> 00:01:21,800 Speaker 1: that are gonna pop up other ones. Are you get 24 00:01:21,840 --> 00:01:25,840 Speaker 1: to be invented yet, Matt, because the evil skills of 25 00:01:26,040 --> 00:01:29,440 Speaker 1: nefarious salesman no no bounds. But before we get to that, 26 00:01:29,480 --> 00:01:31,600 Speaker 1: I did want to mention I don't know how I've 27 00:01:31,640 --> 00:01:33,840 Speaker 1: never seen this before, but have you ever heard of 28 00:01:34,000 --> 00:01:37,640 Speaker 1: November Project? Not until recently? Okay, so I wonder if 29 00:01:37,640 --> 00:01:39,920 Speaker 1: it's just relatively new here in Atlanta, but maybe it is, 30 00:01:39,959 --> 00:01:42,240 Speaker 1: maybe it is active in other cities, but I noticed 31 00:01:42,280 --> 00:01:44,319 Speaker 1: so it's basically if people want to work out in 32 00:01:44,360 --> 00:01:47,640 Speaker 1: a group for free November projects, seems like it's actually 33 00:01:47,680 --> 00:01:49,840 Speaker 1: one of the coolest places to do this. There's one 34 00:01:49,840 --> 00:01:54,240 Speaker 1: free workout class in every local November Project every single week, 35 00:01:54,680 --> 00:01:57,920 Speaker 1: and so once in the week typically Wednesday mornings, that's right. 36 00:01:58,160 --> 00:02:00,240 Speaker 1: And so we found that that there's one in Lanta 37 00:02:00,240 --> 00:02:02,000 Speaker 1: in Pimont Park, right up the street from where we are. 38 00:02:02,320 --> 00:02:04,840 Speaker 1: But there are ones not just nationwide but worldwide. So 39 00:02:04,920 --> 00:02:07,280 Speaker 1: if you're in Beijing, like you can find a November 40 00:02:07,320 --> 00:02:10,160 Speaker 1: Project like they're they've got them in over fifty cities. 41 00:02:10,280 --> 00:02:12,440 Speaker 1: I was actually surprised to see how many chapters. I 42 00:02:12,480 --> 00:02:14,720 Speaker 1: guess that's what they call them, right, how many of 43 00:02:14,720 --> 00:02:17,280 Speaker 1: these three chapters they got going on. What's really cool too, 44 00:02:17,360 --> 00:02:19,760 Speaker 1: is that some of their free workouts, but they are 45 00:02:19,840 --> 00:02:21,960 Speaker 1: free because they don't require any equipment as well. You 46 00:02:22,000 --> 00:02:24,359 Speaker 1: literally show up and they're they kind of workouts that 47 00:02:24,639 --> 00:02:26,560 Speaker 1: just require your body weight where you just kind of 48 00:02:26,600 --> 00:02:29,519 Speaker 1: hop around, do sprints, maybe you like push on each 49 00:02:29,520 --> 00:02:32,560 Speaker 1: other or something, but it doesn't require equipment and a 50 00:02:32,680 --> 00:02:35,200 Speaker 1: running stair and stuff like that exactly. Yeah, and so 51 00:02:35,560 --> 00:02:37,440 Speaker 1: it's a great way to get that free workout on. 52 00:02:37,520 --> 00:02:40,120 Speaker 1: Plus you're able to meet some new friends potentially to 53 00:02:40,639 --> 00:02:43,679 Speaker 1: find some like minded individuals who are looking to save 54 00:02:43,720 --> 00:02:46,200 Speaker 1: a buck also frugal like you, which I think is 55 00:02:46,240 --> 00:02:49,240 Speaker 1: great and and I think sometimes what keeps us it's 56 00:02:49,280 --> 00:02:51,960 Speaker 1: it's not paying the money to a gym can be 57 00:02:52,000 --> 00:02:55,440 Speaker 1: helpful in providing some skin in the game to actually 58 00:02:55,440 --> 00:02:58,000 Speaker 1: show up. I'm thinking about doing it, Okay, I want 59 00:02:58,000 --> 00:03:00,520 Speaker 1: to hear for the accountability more about this. Yeah, uh well, 60 00:03:00,560 --> 00:03:02,240 Speaker 1: I think that's half the reason people do it. It's 61 00:03:02,280 --> 00:03:04,200 Speaker 1: it's either paying so they have some skin in the 62 00:03:04,200 --> 00:03:05,880 Speaker 1: game and it means they're actually gonna show up. But 63 00:03:05,960 --> 00:03:08,120 Speaker 1: even more so when there are people counting on you, 64 00:03:08,160 --> 00:03:10,360 Speaker 1: relying on you, that know that you're going to be there, 65 00:03:10,360 --> 00:03:12,799 Speaker 1: where you verbally committed I'm gonna meet you tomorrow morning 66 00:03:12,800 --> 00:03:14,720 Speaker 1: at six am. We're gonna pump some iron. And then 67 00:03:14,760 --> 00:03:17,320 Speaker 1: you don't show up, Yeah, you're gonna get judged and 68 00:03:17,480 --> 00:03:20,080 Speaker 1: understandably so. And so it's one of those things where 69 00:03:20,320 --> 00:03:22,720 Speaker 1: that that's kind of what November Project is kind of 70 00:03:22,720 --> 00:03:24,520 Speaker 1: based around, is that sort of like you know what, 71 00:03:24,520 --> 00:03:27,040 Speaker 1: you say, you're gonna show up, show up, let's do this, 72 00:03:27,120 --> 00:03:29,639 Speaker 1: and and I think that is Uh, most people pay 73 00:03:29,639 --> 00:03:31,400 Speaker 1: a lot of money now for that and something like 74 00:03:31,400 --> 00:03:34,000 Speaker 1: like in the form of cross fit, it's very expensive. 75 00:03:34,040 --> 00:03:35,480 Speaker 1: And I'm not saying that it's not worth it for 76 00:03:35,520 --> 00:03:37,600 Speaker 1: some folks. I'm just saying maybe there are other ways 77 00:03:37,640 --> 00:03:39,680 Speaker 1: to get that camaraderie and to get a group of 78 00:03:39,720 --> 00:03:42,600 Speaker 1: people that helps get you enthusiastic about about working out. 79 00:03:42,640 --> 00:03:44,440 Speaker 1: But I'm totally yeah, I'm curious, what kind of gym 80 00:03:44,480 --> 00:03:46,520 Speaker 1: are you gonna join? Here? Well, I haven't joined just yet, 81 00:03:46,560 --> 00:03:48,760 Speaker 1: but it is something I've been thinking about U in 82 00:03:48,800 --> 00:03:51,120 Speaker 1: particular since we talked with Erica on Monday and she 83 00:03:51,240 --> 00:03:54,080 Speaker 1: was talking about the difference between having a friend who's 84 00:03:54,080 --> 00:03:57,839 Speaker 1: holding you accountable, where yes, you might get some accountability there, 85 00:03:58,120 --> 00:04:01,320 Speaker 1: but kind of top priority is is that they're your friend, right, 86 00:04:01,400 --> 00:04:04,240 Speaker 1: And so oftentimes friends don't want to ruffle the feathers 87 00:04:04,320 --> 00:04:07,080 Speaker 1: of another friend as opposed to paying somebody where that 88 00:04:07,160 --> 00:04:08,840 Speaker 1: is their job, like like she said, it is her 89 00:04:08,920 --> 00:04:11,200 Speaker 1: job to get up in your business. Uh. And so 90 00:04:11,320 --> 00:04:13,440 Speaker 1: similarly when it comes to working out, if you know, 91 00:04:13,480 --> 00:04:15,280 Speaker 1: if if focusing on your health is a is a 92 00:04:15,320 --> 00:04:17,720 Speaker 1: priority and you're not doing it, it's sort of like 93 00:04:17,760 --> 00:04:19,320 Speaker 1: again one of the things she also said when it 94 00:04:19,360 --> 00:04:22,000 Speaker 1: came to financial coaches, and that's if your level of debt, 95 00:04:22,040 --> 00:04:24,359 Speaker 1: if it hasn't moved recently, but you have a goal, 96 00:04:24,480 --> 00:04:26,760 Speaker 1: say of paying down that debt. If you've seen that 97 00:04:26,760 --> 00:04:29,000 Speaker 1: you've sort of stalled out, then maybe it's time to 98 00:04:29,320 --> 00:04:31,279 Speaker 1: get somebody in your corner. Sort of like we were 99 00:04:31,360 --> 00:04:33,800 Speaker 1: talking about. You're there with physical fitness. Now you realize 100 00:04:33,800 --> 00:04:36,159 Speaker 1: you've been telling yourself lies exactly, Well, I just haven't. 101 00:04:36,200 --> 00:04:38,520 Speaker 1: I'll go for a run, and I like the kids 102 00:04:38,560 --> 00:04:40,800 Speaker 1: to school every morning, but there are certain things that 103 00:04:40,800 --> 00:04:44,480 Speaker 1: I wish I did. Uh. And as we are entering 104 00:04:44,880 --> 00:04:47,200 Speaker 1: I don't know. We're beyond like mid midlife at this point, 105 00:04:47,240 --> 00:04:50,760 Speaker 1: aren't I hope not? What is mid midlife? Man? You 106 00:04:50,800 --> 00:04:52,880 Speaker 1: think I'm gonna die at seventy six? I mean there's 107 00:04:52,880 --> 00:04:55,440 Speaker 1: a potentially. I feel like like the midlife crisis doesn't 108 00:04:55,480 --> 00:04:57,560 Speaker 1: happen normally, like like when you're forty or something before 109 00:04:57,560 --> 00:04:59,919 Speaker 1: you fifty. I don't know either way. As I do 110 00:05:00,000 --> 00:05:02,440 Speaker 1: we get older, it's something I think more about preserving 111 00:05:02,480 --> 00:05:04,400 Speaker 1: my body and making sure I stay fit. So all right, 112 00:05:04,400 --> 00:05:05,919 Speaker 1: don't get a red sports car to go with it, 113 00:05:05,960 --> 00:05:09,320 Speaker 1: though that I will not, Okay, all right, but yeah, 114 00:05:09,760 --> 00:05:11,640 Speaker 1: Google lift you some ways make it happen, And I'm 115 00:05:11,680 --> 00:05:15,039 Speaker 1: not opposed people together. Maybe is some accountability that you 116 00:05:15,040 --> 00:05:17,640 Speaker 1: know I can can hold each other to. I'm cool 117 00:05:17,640 --> 00:05:19,560 Speaker 1: with that. I've actually been thinking about that more and more. 118 00:05:19,720 --> 00:05:22,880 Speaker 1: And you know, if if this local November project was 119 00:05:23,400 --> 00:05:26,440 Speaker 1: like really close to me and more strongly considerate, but 120 00:05:26,520 --> 00:05:29,560 Speaker 1: it is, you know, super convenient from where we live. 121 00:05:29,680 --> 00:05:32,240 Speaker 1: So either way, it's a November dash project if you 122 00:05:32,279 --> 00:05:34,160 Speaker 1: want to look it up and see if there's a 123 00:05:34,240 --> 00:05:36,520 Speaker 1: chapter near you, and we'll keep you updated on whether 124 00:05:36,640 --> 00:05:38,840 Speaker 1: or not Matt and I actually spend money to join 125 00:05:38,880 --> 00:05:41,080 Speaker 1: the gym uh it might happen in the near future. 126 00:05:41,200 --> 00:05:42,760 Speaker 1: But all right, let's mention the beer that we're having 127 00:05:42,839 --> 00:05:46,040 Speaker 1: on this episode. This one is called Wrigley Fields Forever 128 00:05:46,240 --> 00:05:48,880 Speaker 1: by Good Word Brewing. I'm looking forward to trying this 129 00:05:49,000 --> 00:05:52,720 Speaker 1: strawberry and basil sour today on the show. But let's 130 00:05:52,800 --> 00:05:54,520 Speaker 1: move on, Matt. Let's get to the subject at hand. 131 00:05:54,520 --> 00:05:57,559 Speaker 1: We are talking about crappy financial products and why people 132 00:05:57,560 --> 00:06:00,520 Speaker 1: need to flee them before they get fully, before they 133 00:06:00,520 --> 00:06:04,960 Speaker 1: get taken advantage of, before they lose money. And this 134 00:06:05,040 --> 00:06:08,120 Speaker 1: reminded me of Actually, my friends, she found this cute 135 00:06:08,200 --> 00:06:09,800 Speaker 1: chair on the side of the road a few years ago. 136 00:06:10,080 --> 00:06:12,599 Speaker 1: She was very excited about sweet herb alert, kind of 137 00:06:12,600 --> 00:06:14,880 Speaker 1: like you get. I do love a good curb alert. Yes, 138 00:06:15,200 --> 00:06:19,200 Speaker 1: good free score. Everyone knows that at this point. And 139 00:06:19,240 --> 00:06:21,719 Speaker 1: here's the thing, though, she this curb alert actually ended 140 00:06:21,800 --> 00:06:24,560 Speaker 1: up being a really bad thing because when she brought 141 00:06:24,640 --> 00:06:27,760 Speaker 1: that chair into her house and ended up being infested 142 00:06:27,880 --> 00:06:31,560 Speaker 1: by bed bugs. That that's not fun. Those are bugs, 143 00:06:31,560 --> 00:06:34,360 Speaker 1: not limited the beds. Yeah, those are potentially the most 144 00:06:34,400 --> 00:06:37,400 Speaker 1: nefarious creatures on earth. From anybody who's had an experience 145 00:06:37,440 --> 00:06:40,800 Speaker 1: with bed bugs has just horrific things to say. They're 146 00:06:40,839 --> 00:06:43,600 Speaker 1: they're really tiny, which makes them hard to identify, and 147 00:06:43,640 --> 00:06:45,520 Speaker 1: then you don't even know that they're there, Like she 148 00:06:45,560 --> 00:06:47,200 Speaker 1: couldn't tell they were in the chair. She gave it 149 00:06:47,240 --> 00:06:49,400 Speaker 1: a good once over there, you know, they were nestled 150 00:06:49,400 --> 00:06:51,440 Speaker 1: somewhere inside, and they're so small that's it's hard to 151 00:06:51,480 --> 00:06:54,799 Speaker 1: even know the like down the crevices, like on the fringes, 152 00:06:54,839 --> 00:06:56,840 Speaker 1: on the edges of the fabric, picked up underneath. And 153 00:06:56,880 --> 00:06:58,280 Speaker 1: then what do they do once they're in your house. 154 00:06:58,360 --> 00:07:01,360 Speaker 1: They literally start sucking your at night when you're asleep, 155 00:07:01,680 --> 00:07:04,799 Speaker 1: and so it's, uh, it's it's pretty nasty. The according 156 00:07:04,800 --> 00:07:08,000 Speaker 1: to Wikipedia and I quote it says, their bites can 157 00:07:08,040 --> 00:07:10,560 Speaker 1: result in a number of health impacts, including skin rashes, 158 00:07:10,840 --> 00:07:15,560 Speaker 1: psychological effects, and allergic symptoms. So, yeah, my friends, she 159 00:07:15,600 --> 00:07:18,040 Speaker 1: had to get her home incredibly hot in order to 160 00:07:18,120 --> 00:07:19,920 Speaker 1: kill these things. That's the way she decided to come 161 00:07:19,960 --> 00:07:23,360 Speaker 1: at them. She was running the oven full blast, uh 162 00:07:23,360 --> 00:07:25,080 Speaker 1: and the heat at the same time in order to 163 00:07:25,120 --> 00:07:27,119 Speaker 1: get it. I forget if it was like over ninety 164 00:07:27,120 --> 00:07:29,840 Speaker 1: degrees fahrenheit is what kills them safe for a number 165 00:07:29,880 --> 00:07:31,560 Speaker 1: of hours something? Yeah, No, I think it was like 166 00:07:31,760 --> 00:07:33,560 Speaker 1: really not safe, but that she didn't know any other 167 00:07:33,560 --> 00:07:35,040 Speaker 1: way to get rid of them. So it was like 168 00:07:35,080 --> 00:07:38,600 Speaker 1: this nightmare. This free chair turned into this nightmare. And 169 00:07:38,960 --> 00:07:42,400 Speaker 1: Madam makes me think that crappy financial products are kind 170 00:07:42,400 --> 00:07:44,840 Speaker 1: of like bedbugs. You might not even see them coming. 171 00:07:45,040 --> 00:07:47,480 Speaker 1: They're they're small, so small, they're insidious. Are kind of 172 00:07:47,480 --> 00:07:50,480 Speaker 1: like a trojan horse, and then you know, something seemingly 173 00:07:50,520 --> 00:07:53,440 Speaker 1: insignificant can actually end up messing people up in just 174 00:07:53,600 --> 00:07:56,200 Speaker 1: a big, big way, you know, very much like bedbugs 175 00:07:56,240 --> 00:07:58,840 Speaker 1: did to my friend Camp. And one of the similarities 176 00:07:58,880 --> 00:08:02,160 Speaker 1: between bed bugs and the terrible financial products that exist 177 00:08:02,200 --> 00:08:06,080 Speaker 1: out there are that they are both incredibly parasitic. They're 178 00:08:06,120 --> 00:08:09,400 Speaker 1: not necessarily out there to completely destroy you, right at 179 00:08:09,440 --> 00:08:11,960 Speaker 1: least not immediately. Instead, they want you to go on 180 00:08:12,040 --> 00:08:15,000 Speaker 1: living your life so that they can leach as much 181 00:08:15,040 --> 00:08:17,320 Speaker 1: as they can while they just you know, they sit there, 182 00:08:17,360 --> 00:08:20,040 Speaker 1: they get fat and happy, uh, and hopefully they're able 183 00:08:20,080 --> 00:08:22,080 Speaker 1: to do that without you even noticing. I'm kind of 184 00:08:22,080 --> 00:08:23,760 Speaker 1: thinking of ticks as well, because with ticks, like you 185 00:08:23,760 --> 00:08:26,200 Speaker 1: don't even realize that there there. And so am I 186 00:08:26,240 --> 00:08:29,160 Speaker 1: talking about bed bugs are crappy financial products. It's stuff 187 00:08:29,160 --> 00:08:33,000 Speaker 1: to tell here, but Unlike bed bugs, crumby financial products 188 00:08:33,040 --> 00:08:35,600 Speaker 1: are less interested in blood. They're more interested in your 189 00:08:35,640 --> 00:08:39,760 Speaker 1: hard earned money. And the underlying issue with crappy financial 190 00:08:39,760 --> 00:08:43,440 Speaker 1: products is that they're really, really expensive and they're not 191 00:08:43,520 --> 00:08:46,079 Speaker 1: in your best interest. Instead of helping you in the 192 00:08:46,120 --> 00:08:49,080 Speaker 1: wealth building process, they'll slow you down, largely thanks to 193 00:08:49,120 --> 00:08:52,080 Speaker 1: the fact that they are typically so incredibly expensive and 194 00:08:52,080 --> 00:08:55,240 Speaker 1: provide very little value. Yeah, something that is build as 195 00:08:55,440 --> 00:08:59,520 Speaker 1: helping you build wealth, as helping you protect your wealth, 196 00:08:59,840 --> 00:09:02,560 Speaker 1: is actually doing the opposite in so many cases. And 197 00:09:02,600 --> 00:09:05,120 Speaker 1: that's because a big chunk of the items we're going 198 00:09:05,160 --> 00:09:09,040 Speaker 1: to talk about today come with enormous commissions. For the 199 00:09:09,040 --> 00:09:13,080 Speaker 1: person who's selling you the products, Right, this individual makes 200 00:09:13,120 --> 00:09:16,160 Speaker 1: out like a bandit. They're really happy at the end 201 00:09:16,160 --> 00:09:17,680 Speaker 1: of the day that you signed on the dotted line 202 00:09:17,880 --> 00:09:20,600 Speaker 1: and you signed up for whatever this product is, an 203 00:09:20,640 --> 00:09:22,440 Speaker 1: annuity or we're going to get into that and more 204 00:09:22,440 --> 00:09:25,920 Speaker 1: in just a minute. But they're happy. But you are 205 00:09:26,200 --> 00:09:28,959 Speaker 1: are sad because you find yourself tied up in something 206 00:09:29,000 --> 00:09:32,240 Speaker 1: that continues to suck you dry financially. And the thing is, 207 00:09:32,600 --> 00:09:35,760 Speaker 1: these crappy products speak to what we hope for, right, 208 00:09:35,800 --> 00:09:39,560 Speaker 1: getting in on the upside with little to no downside risk. Well, 209 00:09:39,600 --> 00:09:41,880 Speaker 1: that sounds so good. What if you could get all 210 00:09:41,920 --> 00:09:44,360 Speaker 1: the upside of the market but none of the downside. 211 00:09:44,640 --> 00:09:48,960 Speaker 1: That sounds wonderful if that product actually existed. But there's 212 00:09:49,000 --> 00:09:51,880 Speaker 1: always a catch. And so that's an important question to 213 00:09:51,920 --> 00:09:54,640 Speaker 1: ask yourself, right because because many of these products they're 214 00:09:54,640 --> 00:09:57,880 Speaker 1: not all in all outright scams, but they do represent 215 00:09:58,000 --> 00:10:00,560 Speaker 1: a terrible value and there's just a better way to 216 00:10:00,600 --> 00:10:02,920 Speaker 1: skin the cat in most cases, right, there's there's almost 217 00:10:02,920 --> 00:10:05,080 Speaker 1: always a better product that's going to meet your needs 218 00:10:05,200 --> 00:10:08,280 Speaker 1: for far less money. And we want you to save money, 219 00:10:08,320 --> 00:10:10,720 Speaker 1: of course, that's what we care about here on the show. 220 00:10:10,840 --> 00:10:13,200 Speaker 1: We want you to only buy financial products that makes 221 00:10:13,200 --> 00:10:17,040 Speaker 1: sense for your personal financial situation. The ones we're gonna 222 00:10:17,040 --> 00:10:20,160 Speaker 1: mention today makes sense for basically nobody. Yeah, there there 223 00:10:20,320 --> 00:10:23,640 Speaker 1: were more financial products and services out there than ever before, 224 00:10:23,679 --> 00:10:25,679 Speaker 1: and it might be easy to fall into a habit 225 00:10:25,679 --> 00:10:28,960 Speaker 1: of thinking the that like, well, if it exists, then 226 00:10:28,960 --> 00:10:31,800 Speaker 1: it's probably something I should consider. Some financial products have 227 00:10:31,880 --> 00:10:34,320 Speaker 1: also gotten quite a bit more complicated as well. Uh, 228 00:10:34,360 --> 00:10:36,720 Speaker 1: And here's the thing. Some of these crappy financial products 229 00:10:36,920 --> 00:10:39,840 Speaker 1: that we're going to mention that they might actually make 230 00:10:39,880 --> 00:10:42,640 Speaker 1: sense for someone. They were likely created with a specific 231 00:10:42,679 --> 00:10:45,599 Speaker 1: type of customer in mind, but now that products is 232 00:10:45,679 --> 00:10:48,719 Speaker 1: being sold to everyone and their mom like it's the 233 00:10:48,720 --> 00:10:51,000 Speaker 1: greatest thing on earth and so well, you can argue 234 00:10:51,000 --> 00:10:52,880 Speaker 1: that some of these products actually might work for the 235 00:10:52,920 --> 00:10:56,520 Speaker 1: occasional person who might have an enormous income, you know, 236 00:10:56,679 --> 00:10:59,400 Speaker 1: or for some folks with a very specific need. Marketers 237 00:10:59,440 --> 00:11:02,280 Speaker 1: and sales folks across the country aren't treating them that way. 238 00:11:02,600 --> 00:11:06,040 Speaker 1: They are improperly using them and applying them to wide 239 00:11:06,080 --> 00:11:09,240 Speaker 1: swaths of people because it makes them richer while it 240 00:11:09,240 --> 00:11:12,760 Speaker 1: could potentially be causing you financial harm. It truly is parasitic. 241 00:11:12,760 --> 00:11:16,000 Speaker 1: It's not like the symbiotic relationship where you're both mutually benefiting. 242 00:11:16,000 --> 00:11:17,559 Speaker 1: It's it's kind of one sided. Yeah, a lot of 243 00:11:17,600 --> 00:11:20,160 Speaker 1: these products are kind of build as Swiss army knife 244 00:11:20,160 --> 00:11:23,480 Speaker 1: style products where they're gonna help you do accomplish a 245 00:11:23,480 --> 00:11:25,560 Speaker 1: bunch of things at one time in one fell swoop, 246 00:11:25,679 --> 00:11:28,240 Speaker 1: and that sounds so nice. This one product to to 247 00:11:28,480 --> 00:11:30,520 Speaker 1: rule them all, and so you don't have to worry 248 00:11:30,559 --> 00:11:33,600 Speaker 1: about all those other lame ways that everyone else is 249 00:11:33,760 --> 00:11:37,959 Speaker 1: investing or saving or ensuring their financial lives. You pick 250 00:11:38,040 --> 00:11:40,400 Speaker 1: these these one or two things and you can set 251 00:11:40,440 --> 00:11:42,640 Speaker 1: it and forget it. Well, the problem is it's not 252 00:11:42,679 --> 00:11:44,839 Speaker 1: nearly as effective. It's trying to do this Swiss army 253 00:11:44,920 --> 00:11:49,200 Speaker 1: knife style job. But in reality, like the knife is 254 00:11:49,200 --> 00:11:51,360 Speaker 1: is blont, it hasn't been sharpened right, Like all of 255 00:11:51,360 --> 00:11:54,120 Speaker 1: the this was the spoon is bent, like none of 256 00:11:54,120 --> 00:11:57,400 Speaker 1: the individual components are actually in good shape in in 257 00:11:57,440 --> 00:12:00,400 Speaker 1: the Swiss army knife scenario, and and and so much 258 00:12:00,400 --> 00:12:03,280 Speaker 1: of how successible we are to a pitch for a 259 00:12:03,280 --> 00:12:06,840 Speaker 1: financial product or or service comes down to a lack 260 00:12:06,880 --> 00:12:10,000 Speaker 1: of knowledge. Often comes down to the fact that humans 261 00:12:10,240 --> 00:12:13,839 Speaker 1: were wired to trust other people. And so if someone 262 00:12:13,960 --> 00:12:16,360 Speaker 1: makes it sound like they're trying to help you find 263 00:12:16,360 --> 00:12:19,160 Speaker 1: a product that's going to provide you with the necessary 264 00:12:19,160 --> 00:12:22,240 Speaker 1: insurance you need, or to protect your family right or 265 00:12:22,600 --> 00:12:25,400 Speaker 1: a way to build your wealth, they're probably a good 266 00:12:25,400 --> 00:12:27,680 Speaker 1: person right there in the same game as you. They're 267 00:12:27,800 --> 00:12:29,599 Speaker 1: just trying to sell you a product that's going to 268 00:12:29,640 --> 00:12:32,240 Speaker 1: help you get there more quickly. Well, the problem is, 269 00:12:32,240 --> 00:12:33,800 Speaker 1: if they're selling one of the products we're going to 270 00:12:33,880 --> 00:12:37,120 Speaker 1: discuss today, they're probably not. They're probably either a bad 271 00:12:37,120 --> 00:12:39,920 Speaker 1: person just trying to enrich themselves, or they don't even 272 00:12:39,960 --> 00:12:42,240 Speaker 1: fully understand the product that they're selling, because if they did, 273 00:12:42,520 --> 00:12:44,920 Speaker 1: they wouldn't sell it to other people because they're so 274 00:12:45,160 --> 00:12:48,120 Speaker 1: freaking bad and so, and I just want to mention 275 00:12:48,160 --> 00:12:50,199 Speaker 1: to Matt before we get too far into this that 276 00:12:50,240 --> 00:12:53,200 Speaker 1: if someone has purchased one of these products that we mentioned, 277 00:12:53,559 --> 00:12:55,800 Speaker 1: it doesn't make them a bad person, and it doesn't 278 00:12:55,800 --> 00:12:59,080 Speaker 1: mean that they're delusional or or stupid or anything like that. 279 00:12:59,760 --> 00:13:02,319 Speaker 1: There are a lot of industries and individuals who make 280 00:13:02,400 --> 00:13:05,760 Speaker 1: livings selling us financial products that are bad for us. 281 00:13:05,880 --> 00:13:08,880 Speaker 1: And so just because you have been taken advantage of 282 00:13:08,920 --> 00:13:11,560 Speaker 1: in the past by buying one of these buying one 283 00:13:11,559 --> 00:13:14,200 Speaker 1: of these products because someone told you that it was 284 00:13:14,240 --> 00:13:16,800 Speaker 1: going to be a financial game changer for you, it 285 00:13:16,800 --> 00:13:19,040 Speaker 1: doesn't mean there's anything wrong with you. But it's still 286 00:13:19,080 --> 00:13:20,880 Speaker 1: important that we call these things out and we call 287 00:13:20,920 --> 00:13:23,160 Speaker 1: it the people who are selling them. Yeah, when it's 288 00:13:23,160 --> 00:13:27,160 Speaker 1: someone's full time job to push these different crappy financial products, 289 00:13:27,280 --> 00:13:29,040 Speaker 1: it takes us doing a little bit of work. And 290 00:13:29,280 --> 00:13:31,839 Speaker 1: we have to be savvy with our money. So let's 291 00:13:31,880 --> 00:13:34,600 Speaker 1: go ahead and highlight our first crappy product, which is 292 00:13:34,679 --> 00:13:37,160 Speaker 1: let's talk about annuities. It's hard to pick a number 293 00:13:37,160 --> 00:13:38,959 Speaker 1: one villain that like, if we had to, I think 294 00:13:38,960 --> 00:13:41,760 Speaker 1: annuities that they might kind of be the Voldemort of 295 00:13:41,920 --> 00:13:46,680 Speaker 1: financial products. And so the way annuities work is fairly simple. Uh. 296 00:13:46,760 --> 00:13:50,040 Speaker 1: You pay a lump sum to an insurance company today 297 00:13:50,160 --> 00:13:53,520 Speaker 1: with a contract that spells out how and when they'll 298 00:13:53,520 --> 00:13:55,920 Speaker 1: pay you money in the future, and you're trying to 299 00:13:55,960 --> 00:13:58,360 Speaker 1: turn money that you've got today into a guaranteed income 300 00:13:58,400 --> 00:14:01,760 Speaker 1: stream down the road. So buying an annuity gives you, 301 00:14:02,200 --> 00:14:05,800 Speaker 1: like some some more certainty over your future income needs, 302 00:14:05,840 --> 00:14:10,160 Speaker 1: but that certainty comes with significant downsides. The problem is 303 00:14:10,240 --> 00:14:14,240 Speaker 1: that these are incredibly complex products and there are there's 304 00:14:14,280 --> 00:14:16,880 Speaker 1: a lot of different flavors of annuities, and the more 305 00:14:17,040 --> 00:14:21,040 Speaker 1: complex the product is, the more availability there are for 306 00:14:21,160 --> 00:14:24,000 Speaker 1: there to be loopholes where the salesperson and the different 307 00:14:24,000 --> 00:14:27,280 Speaker 1: companies are able to extract more of your money from you. Uh. 308 00:14:27,320 --> 00:14:29,880 Speaker 1: And so some of these different annuities are kind of 309 00:14:29,920 --> 00:14:32,360 Speaker 1: just you know, like not great, while there are others 310 00:14:32,400 --> 00:14:35,440 Speaker 1: that are just downright horrendous. And of course the commission 311 00:14:35,480 --> 00:14:38,720 Speaker 1: is almost all annuity products are crazy expensive, just netting 312 00:14:38,720 --> 00:14:41,840 Speaker 1: the salesperson a significant chuck of change. That's just one 313 00:14:42,080 --> 00:14:44,600 Speaker 1: of the mini fees that often gets snuck into these products, 314 00:14:44,640 --> 00:14:47,400 Speaker 1: oftentimes due to the complexity, and you don't even realize 315 00:14:47,400 --> 00:14:50,280 Speaker 1: that they're there. Yeah. I mentioned the term trojan horse earlier. Matter. 316 00:14:50,280 --> 00:14:52,480 Speaker 1: I feel like annuities are the ultimate trojan horse when 317 00:14:52,480 --> 00:14:54,600 Speaker 1: it comes to fees, because there are different ways to 318 00:14:54,720 --> 00:14:57,080 Speaker 1: kind of slide them into these products that people are 319 00:14:57,160 --> 00:15:00,360 Speaker 1: just completely unaware of. And who reads the entire contract? 320 00:15:00,360 --> 00:15:02,320 Speaker 1: I mean, when you're signing up for a new email 321 00:15:02,360 --> 00:15:05,480 Speaker 1: service or a new website or whatever it is online, 322 00:15:05,480 --> 00:15:08,600 Speaker 1: who who actually reads the full terms and agreement. It's 323 00:15:08,640 --> 00:15:11,760 Speaker 1: like nobody does, And nobody reads the full contract on 324 00:15:11,880 --> 00:15:15,200 Speaker 1: an annuity either, like almost nobody. Right, you are the anomaly. 325 00:15:15,280 --> 00:15:18,400 Speaker 1: You're the half of a percent of of an individual 326 00:15:18,400 --> 00:15:20,720 Speaker 1: who does. But the problem is it doesn't mean very 327 00:15:20,760 --> 00:15:22,560 Speaker 1: deeply those contracts. There's a lot of stuff in there 328 00:15:22,560 --> 00:15:24,240 Speaker 1: to screw you, sure, and it doesn't mean you shouldn't, 329 00:15:24,280 --> 00:15:26,920 Speaker 1: especially when you're looking at likely that some of money 330 00:15:26,960 --> 00:15:30,280 Speaker 1: on something the reality super familiar with. On some things there, 331 00:15:30,400 --> 00:15:32,240 Speaker 1: obviously we kind of skipped through all the mice type 332 00:15:32,280 --> 00:15:34,640 Speaker 1: we scrolled to the bottom. We hit agree. If you're 333 00:15:34,640 --> 00:15:37,080 Speaker 1: looking at like a podcast app or something like that. 334 00:15:37,080 --> 00:15:39,000 Speaker 1: That's like, you know that there's very low stakes. You're 335 00:15:39,000 --> 00:15:41,600 Speaker 1: probably not giving all your firstborn to Spotify. Yeah, and 336 00:15:41,600 --> 00:15:43,480 Speaker 1: and chances are like there are millions of other people 337 00:15:43,480 --> 00:15:45,480 Speaker 1: who are also using that app. But when it does 338 00:15:45,520 --> 00:15:47,600 Speaker 1: come to something like a financial product that you're you're 339 00:15:47,600 --> 00:15:49,880 Speaker 1: a little bit less familiar with something that you don't 340 00:15:49,920 --> 00:15:53,160 Speaker 1: hear everyone talking about all the time. Ultimately, it is 341 00:15:53,240 --> 00:15:55,600 Speaker 1: our responsibility to to make sure that we are not 342 00:15:55,680 --> 00:15:58,200 Speaker 1: parted with our own money. Yeah, Matton, don't you think 343 00:15:58,200 --> 00:16:03,360 Speaker 1: that page contracts of tiny print, Isn't that's part of 344 00:16:03,360 --> 00:16:06,760 Speaker 1: the deal to right to confuse you, to make things complex. 345 00:16:07,160 --> 00:16:09,640 Speaker 1: And they're just assuming that most people aren't gonna dig 346 00:16:09,680 --> 00:16:13,400 Speaker 1: in and read very deeply. And that actually is something 347 00:16:13,440 --> 00:16:17,520 Speaker 1: that's in the sales person's favor because most folks aren't 348 00:16:17,520 --> 00:16:19,800 Speaker 1: going to do the due diligence that they should. And 349 00:16:20,080 --> 00:16:22,520 Speaker 1: you know, the first thing to note is that when 350 00:16:22,560 --> 00:16:24,880 Speaker 1: when we're talking about annuities, the historic returns of the 351 00:16:24,920 --> 00:16:28,200 Speaker 1: stock market, even let's say in a balanced sixty forty 352 00:16:28,240 --> 00:16:32,800 Speaker 1: portfolio sixty stocks bonds, they're far superior to the returns 353 00:16:32,800 --> 00:16:35,000 Speaker 1: you're going to see on an annuity over the years 354 00:16:35,280 --> 00:16:37,720 Speaker 1: there are almost always caps on the upside that you 355 00:16:37,760 --> 00:16:40,480 Speaker 1: can experience, so when the market is on a tear, 356 00:16:40,720 --> 00:16:43,160 Speaker 1: you only get a portion of that upside. And on 357 00:16:43,240 --> 00:16:45,880 Speaker 1: top of that, annuities have a serious liquidity problem. They're 358 00:16:45,880 --> 00:16:48,640 Speaker 1: they're they're famously complex, like I was saying, and difficult 359 00:16:48,640 --> 00:16:52,920 Speaker 1: to understand. There are a couple of exceptions that might 360 00:16:52,960 --> 00:16:55,840 Speaker 1: not be all that bad in the annuity world, but 361 00:16:55,840 --> 00:16:59,160 Speaker 1: but there aren't that many. Immediate payout and longevity annuities 362 00:16:59,520 --> 00:17:02,320 Speaker 1: are part menial exceptions. But even still, you need to 363 00:17:02,360 --> 00:17:04,640 Speaker 1: pay close attention to the fees and make sure you're 364 00:17:04,640 --> 00:17:07,800 Speaker 1: getting this annuity from the right provider that isn't going 365 00:17:07,840 --> 00:17:09,880 Speaker 1: to screw you over and and and so even still, 366 00:17:09,880 --> 00:17:12,200 Speaker 1: that's maybe I hate to even like has make mention 367 00:17:12,440 --> 00:17:16,080 Speaker 1: of a good annuity because plus percent of them are 368 00:17:16,160 --> 00:17:19,080 Speaker 1: are awful. But when I comes fast, the majority of 369 00:17:19,119 --> 00:17:21,439 Speaker 1: our listeners shouldn't be looking at it right right, especially 370 00:17:21,520 --> 00:17:23,720 Speaker 1: how the money listeners based on the age of threat. 371 00:17:23,800 --> 00:17:26,879 Speaker 1: This is something that might work in retirement for some people, 372 00:17:27,200 --> 00:17:31,320 Speaker 1: but investing well for your own future, plus the realization 373 00:17:31,359 --> 00:17:34,360 Speaker 1: that you'll have some Social security, which is kind of 374 00:17:34,440 --> 00:17:37,359 Speaker 1: an annuity get by the government it's like a pension 375 00:17:37,480 --> 00:17:41,119 Speaker 1: that you're guaranteed based on your work history. Well, that 376 00:17:41,240 --> 00:17:45,200 Speaker 1: should mean that you can avoid these annuities altogether. Yeah, 377 00:17:45,200 --> 00:17:47,600 Speaker 1: what folks are looking for here is that guaranteed rate 378 00:17:47,600 --> 00:17:50,399 Speaker 1: of return where they're able to eliminate some of that uncertainty, 379 00:17:50,560 --> 00:17:52,560 Speaker 1: where they're able to eliminate some of that risk in 380 00:17:52,600 --> 00:17:55,680 Speaker 1: the future. Uh. It reminds me of how some people 381 00:17:55,680 --> 00:17:58,119 Speaker 1: approach cash, where they think, well, if I keep that 382 00:17:58,160 --> 00:18:00,040 Speaker 1: money in the bank, at least I'm guaranteed on not 383 00:18:00,160 --> 00:18:04,159 Speaker 1: lose that money when inflation is I mean, honestly, I 384 00:18:04,200 --> 00:18:07,000 Speaker 1: don't think anybody thinks that inflation isn't eating away at 385 00:18:07,000 --> 00:18:09,080 Speaker 1: their money. Like back before, when it was low, say 386 00:18:09,119 --> 00:18:11,800 Speaker 1: that two percent, it was a bit easier to not 387 00:18:11,880 --> 00:18:14,480 Speaker 1: think that your money was getting eroded by inflation. With 388 00:18:14,840 --> 00:18:17,960 Speaker 1: with where we are today, it's much more present. But 389 00:18:18,040 --> 00:18:20,400 Speaker 1: over the long haul of history shows that we are 390 00:18:20,520 --> 00:18:22,800 Speaker 1: more likely to see less of our money in the 391 00:18:22,840 --> 00:18:24,800 Speaker 1: future were we to keep it in cash as opposed 392 00:18:24,800 --> 00:18:27,000 Speaker 1: to investing in the market. And I think the same 393 00:18:27,000 --> 00:18:28,879 Speaker 1: thing is true with annuities. We think that this is 394 00:18:28,880 --> 00:18:31,560 Speaker 1: a way that we can guarantee, guarantee these future returns 395 00:18:31,880 --> 00:18:33,800 Speaker 1: when in fact, what we're guaranteeing is a lower rate 396 00:18:33,800 --> 00:18:36,960 Speaker 1: of return, higher fees and commissions and costs associated with 397 00:18:37,000 --> 00:18:39,720 Speaker 1: that product, when instead we should be investing that money 398 00:18:39,760 --> 00:18:42,600 Speaker 1: in the market. Yeah. Often times these products cash similar 399 00:18:42,640 --> 00:18:47,240 Speaker 1: That's a great example. Are are basically touted as risk free, 400 00:18:47,560 --> 00:18:50,439 Speaker 1: but in reality you're actually taking on a very known risks, 401 00:18:50,840 --> 00:18:53,280 Speaker 1: guaranteed risk. By trying to turn risk off, you're taking 402 00:18:53,280 --> 00:18:57,120 Speaker 1: a very guaranteed risk that for almost everyone ends up 403 00:18:57,320 --> 00:19:01,159 Speaker 1: with with much worse downsides. So, yeah, I'm glad you 404 00:19:01,160 --> 00:19:04,240 Speaker 1: brought that up. But there there are more crappy financial products. 405 00:19:04,320 --> 00:19:08,160 Speaker 1: We need to talk about. Insurance products, there are vacation products. 406 00:19:08,200 --> 00:19:10,840 Speaker 1: We are a wash and crappy financial products in this country. 407 00:19:10,840 --> 00:19:22,600 Speaker 1: We'll talk about more of those right after this. We 408 00:19:22,680 --> 00:19:24,880 Speaker 1: are a wash and crap is what I just heard 409 00:19:24,880 --> 00:19:27,960 Speaker 1: you say right before the break see of stink. It 410 00:19:28,000 --> 00:19:30,680 Speaker 1: feels like that's a great way to describe the current 411 00:19:30,680 --> 00:19:33,320 Speaker 1: affair of things here in the US, in the world 412 00:19:33,359 --> 00:19:35,840 Speaker 1: honestly in general. But let's keep moving in we're talking 413 00:19:36,000 --> 00:19:40,159 Speaker 1: about these different crappy financial products, and uh, next on 414 00:19:40,240 --> 00:19:43,720 Speaker 1: our list is whole life insurance. We actually talked about 415 00:19:43,720 --> 00:19:45,440 Speaker 1: this in our in our most recent ask how the 416 00:19:45,480 --> 00:19:48,160 Speaker 1: Money episode, But we've got a big problem with whole 417 00:19:48,200 --> 00:19:53,560 Speaker 1: life insurance because the premiums are so incredibly expensive. Because 418 00:19:53,600 --> 00:19:57,000 Speaker 1: of that, most folks actually opt for less coverage than 419 00:19:57,040 --> 00:20:00,080 Speaker 1: what they actually need, and that is not good. And 420 00:20:00,119 --> 00:20:03,280 Speaker 1: these policies can sound great, uh sales folks to make 421 00:20:03,280 --> 00:20:05,919 Speaker 1: it seem like that the cash value, the tax advantages, 422 00:20:06,040 --> 00:20:07,760 Speaker 1: these are all going to be a boon to you 423 00:20:07,840 --> 00:20:11,240 Speaker 1: in the future. But what the question you need to 424 00:20:11,240 --> 00:20:13,879 Speaker 1: ask yourself is at what cost? Uh? And And like 425 00:20:13,960 --> 00:20:15,919 Speaker 1: we said in that episode, when we answer that question, 426 00:20:16,200 --> 00:20:19,520 Speaker 1: premiums are roughly fifteen times which you'll pay for a 427 00:20:19,600 --> 00:20:22,960 Speaker 1: similar term life policy. Uh. And so what we would 428 00:20:22,960 --> 00:20:25,720 Speaker 1: recommend is for you to avoid whole life insurance and 429 00:20:25,760 --> 00:20:29,040 Speaker 1: instead go with the simpler route, get term life insurance, 430 00:20:29,720 --> 00:20:32,640 Speaker 1: keep your insurance, and you're investing separate. So on one hand, 431 00:20:32,680 --> 00:20:35,760 Speaker 1: you've got an actual insurance product, and then with the 432 00:20:35,800 --> 00:20:37,480 Speaker 1: money that you have left over, you can take that 433 00:20:37,520 --> 00:20:39,800 Speaker 1: money and invest it in the market. Keep in mind 434 00:20:39,800 --> 00:20:41,399 Speaker 1: that when when someone tries to sell you on the 435 00:20:41,400 --> 00:20:44,280 Speaker 1: benefits of whole or permanent life insurance, we want you 436 00:20:44,320 --> 00:20:46,960 Speaker 1: to run away. That's when it's time to flee. Yeah, 437 00:20:47,000 --> 00:20:48,640 Speaker 1: or you can just take the tact that my eight 438 00:20:48,680 --> 00:20:50,600 Speaker 1: year old does when my six year olds annoying her, cover, 439 00:20:50,760 --> 00:20:53,240 Speaker 1: cover her ears, and make other sounds just so she 440 00:20:53,240 --> 00:20:54,800 Speaker 1: doesn't even have to hear talk. That that's the kind 441 00:20:54,800 --> 00:20:57,120 Speaker 1: of thing you could even go with a childlike response 442 00:20:57,160 --> 00:20:58,920 Speaker 1: if you need to. That's what it takes, if that's 443 00:20:58,920 --> 00:21:02,080 Speaker 1: the best way to avoid the sales pitch, Like, whatever, 444 00:21:02,119 --> 00:21:04,240 Speaker 1: whatever you gotta do is fine with us. But Matt, 445 00:21:04,440 --> 00:21:06,600 Speaker 1: I love what you said there too. That sometimes people 446 00:21:06,600 --> 00:21:10,280 Speaker 1: out for a smaller coverage amount because the premiums are 447 00:21:10,280 --> 00:21:12,919 Speaker 1: so expensive, they're not covered in the way they need 448 00:21:12,960 --> 00:21:14,600 Speaker 1: to be because they chose the wrong product, And so 449 00:21:14,840 --> 00:21:17,400 Speaker 1: not only are they paying more money, but they don't 450 00:21:17,400 --> 00:21:19,600 Speaker 1: have the covers they need in case an inferior products 451 00:21:19,880 --> 00:21:22,000 Speaker 1: because of that, in case they do if they pass away, 452 00:21:22,280 --> 00:21:24,920 Speaker 1: their family doesn't have the money they need to cover 453 00:21:25,119 --> 00:21:27,439 Speaker 1: that lost salary. So that's a really important point on 454 00:21:27,480 --> 00:21:29,880 Speaker 1: that one, and in that vein, let's keep talking about 455 00:21:29,880 --> 00:21:32,400 Speaker 1: insurance for a second, because it's it's not just whole 456 00:21:32,400 --> 00:21:35,439 Speaker 1: life permanent life that's a problem. That's one, but highly 457 00:21:35,480 --> 00:21:39,320 Speaker 1: specific types of insurance can be similarly detrimental, They can 458 00:21:39,359 --> 00:21:42,520 Speaker 1: be wasteful, they can be just completely unnecessary and extraneous, 459 00:21:42,560 --> 00:21:45,760 Speaker 1: they can be a waste of money. And so, for instance, 460 00:21:46,000 --> 00:21:50,080 Speaker 1: something like cancer insurance, that sounds great, right you You probably, 461 00:21:50,119 --> 00:21:53,040 Speaker 1: in all likelihood you know somebody who has had cancer, 462 00:21:53,080 --> 00:21:55,000 Speaker 1: and you're like, I would like to protect myself if 463 00:21:55,119 --> 00:21:58,560 Speaker 1: I do for some reason, um, sadly end up getting diagnosed. 464 00:21:58,920 --> 00:22:01,560 Speaker 1: Wouldn't be nice to have in to cover against that. Well, 465 00:22:02,040 --> 00:22:03,840 Speaker 1: if you've got just way more money than you know 466 00:22:03,880 --> 00:22:06,119 Speaker 1: what to do with, it might make sense. Or if 467 00:22:06,119 --> 00:22:08,320 Speaker 1: you have like a history of cancer in your family 468 00:22:08,400 --> 00:22:10,679 Speaker 1: and too much money that then it could make sense too. 469 00:22:11,080 --> 00:22:14,560 Speaker 1: But here's the thing. You're ensuring against an unlikely outcome, 470 00:22:14,880 --> 00:22:17,720 Speaker 1: so the numbers almost never work, Whereas when you're insuring 471 00:22:17,760 --> 00:22:22,000 Speaker 1: against death, well there's chance of that, right. But the 472 00:22:22,040 --> 00:22:26,160 Speaker 1: fact is that if you're considering cancer or disease specific insurance, 473 00:22:26,400 --> 00:22:28,720 Speaker 1: there's a good chance that you already have a standard 474 00:22:28,720 --> 00:22:32,119 Speaker 1: health insurance policy which covers the costs associated with that 475 00:22:32,160 --> 00:22:35,520 Speaker 1: sickness that you're trying to ensure against. And um, evidently, 476 00:22:35,520 --> 00:22:37,920 Speaker 1: by the way, most cancer insurance doesn't cover skin cancer, 477 00:22:37,960 --> 00:22:41,000 Speaker 1: which is one of the most predominant types, and so yeah, 478 00:22:41,000 --> 00:22:43,320 Speaker 1: you have to pay attention to the fine print to 479 00:22:43,359 --> 00:22:46,080 Speaker 1: make sure, like am I actually getting getting the coverage 480 00:22:46,119 --> 00:22:48,280 Speaker 1: I need based on what I'm signing up for? Um, 481 00:22:48,280 --> 00:22:50,960 Speaker 1: But these hyper specific policies are something to watch out 482 00:22:50,960 --> 00:22:54,080 Speaker 1: for because oftentimes you're paying premiums, but you never actually 483 00:22:54,119 --> 00:22:57,520 Speaker 1: see any sort of benefit from what you've been paying in. 484 00:22:57,840 --> 00:23:00,639 Speaker 1: That's another example we're reading that mice type is really 485 00:23:00,800 --> 00:23:04,080 Speaker 1: important to do. It's yeah, it's really It's almost as 486 00:23:04,119 --> 00:23:05,800 Speaker 1: if you had car insurance and they're like, oh, by 487 00:23:05,800 --> 00:23:08,920 Speaker 1: the way, we won't ensure against any accidents that take 488 00:23:08,960 --> 00:23:11,560 Speaker 1: place on the interstate. You know, like half of where 489 00:23:11,720 --> 00:23:14,280 Speaker 1: you half the time where you drive. Are we only 490 00:23:14,280 --> 00:23:18,560 Speaker 1: insure rex accidents with other cars. No trucks, semi trucks, Uh, 491 00:23:18,800 --> 00:23:23,840 Speaker 1: No motorcycles, no al caminos, those don't count. It's ridiculous. Um, 492 00:23:24,040 --> 00:23:26,080 Speaker 1: this makes me think of pet insurance actually, but I 493 00:23:26,080 --> 00:23:28,320 Speaker 1: feel like this is a less egregious example, but it's 494 00:23:28,320 --> 00:23:31,080 Speaker 1: worth mentioning as well. But if you have a breed 495 00:23:31,119 --> 00:23:34,679 Speaker 1: that is more susceptible to certain health issues, or you know, 496 00:23:34,720 --> 00:23:37,240 Speaker 1: maybe your pets a little more accident prone, this is 497 00:23:37,240 --> 00:23:40,600 Speaker 1: a policy that could potentially make sense. And you know, 498 00:23:40,640 --> 00:23:43,040 Speaker 1: I know that some folks are completely in love with 499 00:23:43,160 --> 00:23:45,280 Speaker 1: their four legged best friend, but a lot of the 500 00:23:45,320 --> 00:23:48,080 Speaker 1: most desirable breeds come with health issues that will end 501 00:23:48,160 --> 00:23:51,080 Speaker 1: up costing you even more money down the road. Uh, 502 00:23:51,160 --> 00:23:53,639 Speaker 1: not to mention the you know, the the shock of 503 00:23:53,640 --> 00:23:55,840 Speaker 1: the initial upfront cost of some of those breeds as well. 504 00:23:56,200 --> 00:23:59,080 Speaker 1: This is when fostering or adopting from the pound is 505 00:23:59,119 --> 00:24:01,720 Speaker 1: a great way to go. So if you're considering pet insurance, 506 00:24:01,800 --> 00:24:05,399 Speaker 1: having more cash on hand and self insuring this often 507 00:24:05,480 --> 00:24:08,359 Speaker 1: makes the most sense. For the vast majority of folks. 508 00:24:08,359 --> 00:24:11,159 Speaker 1: Stay away from these specific types of insurance that are 509 00:24:11,200 --> 00:24:13,399 Speaker 1: just going to cost you premiums every month and you 510 00:24:13,440 --> 00:24:16,280 Speaker 1: are unlikely to receive any benefit from them. Yeah, the 511 00:24:16,320 --> 00:24:19,199 Speaker 1: vast majority of people spend more in premiums than they 512 00:24:19,200 --> 00:24:21,600 Speaker 1: get in coverage. And I know it kind of feels 513 00:24:21,640 --> 00:24:23,800 Speaker 1: like it's providing you some peace of mind. That's the thing, Matt. 514 00:24:23,800 --> 00:24:26,640 Speaker 1: A lot of these products, a lot of people buy 515 00:24:26,680 --> 00:24:29,040 Speaker 1: them because for the peace of mind, saying, you know what, 516 00:24:29,119 --> 00:24:32,200 Speaker 1: if this does happen, I'm covered, and it feels good. 517 00:24:32,440 --> 00:24:35,800 Speaker 1: But in reality, if you were just funneling that money 518 00:24:35,840 --> 00:24:38,120 Speaker 1: into a same these account, you'd be better off. And 519 00:24:38,240 --> 00:24:43,080 Speaker 1: let's let's talk about just another product altogether that, hopefully 520 00:24:43,119 --> 00:24:45,360 Speaker 1: at this point most people know is a terrible one. 521 00:24:45,880 --> 00:24:47,760 Speaker 1: It's it's one you want to avoid, like to play, 522 00:24:47,880 --> 00:24:51,119 Speaker 1: and that is Timeshares. Matt and I were fans of 523 00:24:51,160 --> 00:24:54,200 Speaker 1: folks going on vacation and and I thought you're about 524 00:24:54,200 --> 00:24:56,840 Speaker 1: to say we're fans of time No. No, we want 525 00:24:56,880 --> 00:24:59,119 Speaker 1: people to go take trips, when people to take multiple 526 00:24:59,119 --> 00:25:01,879 Speaker 1: weeks off at least we do like then, go visit family, 527 00:25:01,960 --> 00:25:05,720 Speaker 1: go visit a new destination you've ever been to do not, however, 528 00:25:05,880 --> 00:25:07,800 Speaker 1: get a time share and keep going back there. And 529 00:25:07,840 --> 00:25:09,560 Speaker 1: it's not even because we're against going back to the 530 00:25:09,600 --> 00:25:11,520 Speaker 1: same place you're you're in a year out. We think 531 00:25:11,560 --> 00:25:14,560 Speaker 1: that's fine too if you're particularly inclined to a specific place. 532 00:25:14,920 --> 00:25:17,320 Speaker 1: My family would be going to Tybee Island off the 533 00:25:17,359 --> 00:25:19,720 Speaker 1: coast of Georgia for for years now, and we love 534 00:25:19,760 --> 00:25:21,720 Speaker 1: it and I'm totally down to go back every single year. 535 00:25:22,000 --> 00:25:24,800 Speaker 1: But participating in a time share means that you're taking 536 00:25:24,800 --> 00:25:27,960 Speaker 1: a vacation strategy that could work out really well for 537 00:25:28,000 --> 00:25:30,320 Speaker 1: you and your family, and you're instead signing up for 538 00:25:30,440 --> 00:25:34,280 Speaker 1: something that can be insanely costly that allows you zero flexibility, 539 00:25:34,640 --> 00:25:37,360 Speaker 1: and so time shares they're just crap products. And it's 540 00:25:37,359 --> 00:25:40,720 Speaker 1: not because the unit you're buying doesn't have or buying 541 00:25:40,720 --> 00:25:43,080 Speaker 1: a portion of right I'm buying a weekend, doesn't have 542 00:25:43,119 --> 00:25:46,280 Speaker 1: a great view, or isn't even a lovely place to stay, 543 00:25:46,320 --> 00:25:48,879 Speaker 1: But it's because of the way that they're bought and sold. 544 00:25:49,160 --> 00:25:51,919 Speaker 1: Time shares are money making machines from the sales end 545 00:25:51,920 --> 00:25:55,439 Speaker 1: of the equation, but they are perpetual money losers for 546 00:25:55,480 --> 00:25:57,679 Speaker 1: the buyer, and so time shares are a no go. 547 00:25:57,800 --> 00:26:00,000 Speaker 1: They definitely top are at the top of the list 548 00:26:00,040 --> 00:26:03,280 Speaker 1: near annuities of crappiest financial products out there. Yeah, we 549 00:26:03,359 --> 00:26:06,560 Speaker 1: talked about how pushing some of those insurance sales folks 550 00:26:06,560 --> 00:26:08,800 Speaker 1: can be their their livelihoods on the line when it 551 00:26:08,840 --> 00:26:10,880 Speaker 1: comes to signing you up for a whole life insurance 552 00:26:10,920 --> 00:26:14,160 Speaker 1: policy or for an annuity. The same is true of 553 00:26:14,200 --> 00:26:17,200 Speaker 1: the folks selling time shares. Plenty of ink has been 554 00:26:17,240 --> 00:26:20,840 Speaker 1: spilled about how pressure filled those presentations can become. I've 555 00:26:20,840 --> 00:26:23,680 Speaker 1: sat through one of those myself for the free breakfast. 556 00:26:24,520 --> 00:26:25,919 Speaker 1: Was it worth it? It was worth it for you? You 557 00:26:25,800 --> 00:26:27,520 Speaker 1: You said, that's yeah, at the time I was in. 558 00:26:27,800 --> 00:26:29,960 Speaker 1: So many people get convinced barely out of college. There's 559 00:26:30,000 --> 00:26:31,960 Speaker 1: no way, like even if we had wanted to sign up, 560 00:26:32,000 --> 00:26:34,040 Speaker 1: I don't think they would have allowed us to. But 561 00:26:34,080 --> 00:26:36,480 Speaker 1: we heard there was a visa, check card and breakfast 562 00:26:36,560 --> 00:26:40,359 Speaker 1: and Mimosa's involved, so we were down. But but if 563 00:26:40,359 --> 00:26:43,439 Speaker 1: you disagree and you really want a time share, at 564 00:26:43,520 --> 00:26:46,440 Speaker 1: least get one on the secondary market. There are tons 565 00:26:46,600 --> 00:26:49,320 Speaker 1: of folks willing to sell you their time share for 566 00:26:49,480 --> 00:26:52,280 Speaker 1: pennies on the dollar or even for free. And it's 567 00:26:52,320 --> 00:26:54,640 Speaker 1: mostly because they're tired of paying the fees every year 568 00:26:54,720 --> 00:26:57,560 Speaker 1: on that property. No wonder they have to promise you 569 00:26:57,600 --> 00:27:00,600 Speaker 1: free stuff just to get you in the door. Instead, 570 00:27:00,760 --> 00:27:02,600 Speaker 1: we want to see you save up cash to pay 571 00:27:02,640 --> 00:27:05,800 Speaker 1: for your vacations. Whether that's you know, whether you're exploring 572 00:27:05,800 --> 00:27:08,400 Speaker 1: somewhere new every single year, or whether that's you Joe 573 00:27:08,440 --> 00:27:10,560 Speaker 1: going back to the same same old spot because you 574 00:27:10,920 --> 00:27:13,280 Speaker 1: like it there. That's totally fine. How you go about 575 00:27:13,320 --> 00:27:15,200 Speaker 1: getting back to that same place makes all the difference 576 00:27:15,200 --> 00:27:17,480 Speaker 1: in the world. Avoid time shares, yes, for sure. And 577 00:27:17,480 --> 00:27:19,119 Speaker 1: we can even put a couple of links to to 578 00:27:19,200 --> 00:27:21,840 Speaker 1: some places that might be helpful if you're either looking 579 00:27:21,840 --> 00:27:24,600 Speaker 1: to sell a time share or you're looking to buy 580 00:27:24,600 --> 00:27:27,600 Speaker 1: one for or get one for free. There there are 581 00:27:27,600 --> 00:27:29,239 Speaker 1: a couple of places on the internet that make it 582 00:27:29,400 --> 00:27:31,520 Speaker 1: a little a little easier to do that, but still 583 00:27:31,560 --> 00:27:34,720 Speaker 1: it's really hard. Let's say some people pay fifteen thousand 584 00:27:34,760 --> 00:27:37,120 Speaker 1: dollars per a timeshare, Matt, and then literally the next 585 00:27:37,200 --> 00:27:40,040 Speaker 1: day it's worth five dollars. I mean, it's it's one 586 00:27:40,040 --> 00:27:42,399 Speaker 1: of those. It's it's a worse decision than buying a 587 00:27:42,400 --> 00:27:45,520 Speaker 1: new car. That's how quickly those time shares appreciate. They're 588 00:27:45,560 --> 00:27:47,840 Speaker 1: worth basically nothing from the get go. And that's because 589 00:27:47,960 --> 00:27:51,240 Speaker 1: they come with all those monthly recurring fees, maintenance fees, 590 00:27:51,640 --> 00:27:53,800 Speaker 1: and so you're gonna be paying those no matter what, 591 00:27:54,000 --> 00:27:56,879 Speaker 1: whether you use it or not. And I don't know 592 00:27:56,920 --> 00:27:59,120 Speaker 1: if anybody who's got one, and they're actually, like, best 593 00:27:59,160 --> 00:28:01,399 Speaker 1: decision in my life. I've never heard it. And if 594 00:28:01,400 --> 00:28:03,119 Speaker 1: there is somebody like that, I would love to talk 595 00:28:03,200 --> 00:28:06,880 Speaker 1: to them. But they're before and they like, okay, we're yeah, 596 00:28:06,880 --> 00:28:09,840 Speaker 1: we're it worked out for them, but they they admitted, 597 00:28:09,840 --> 00:28:12,880 Speaker 1: they readily admitted that they're not forever, and they know 598 00:28:13,040 --> 00:28:15,760 Speaker 1: that they're kind of a special circumstance. Yeah for sure. 599 00:28:15,760 --> 00:28:19,399 Speaker 1: All right, let's talk about another another financial product that 600 00:28:19,480 --> 00:28:23,200 Speaker 1: is a piece of crap, and this is extended warranties. 601 00:28:23,240 --> 00:28:25,240 Speaker 1: Let's talk about that for a second map because those 602 00:28:25,240 --> 00:28:29,160 Speaker 1: are often sold with high sales pressure tactics too. I'm 603 00:28:29,200 --> 00:28:31,840 Speaker 1: sensing a theme here. Every single every single one has 604 00:28:31,880 --> 00:28:34,080 Speaker 1: somebody who stands to benefit on the other side of 605 00:28:34,080 --> 00:28:36,760 Speaker 1: the equation, putting together a high pressure scenario so that 606 00:28:36,800 --> 00:28:39,440 Speaker 1: you have to make a quick decision. And the thing 607 00:28:39,520 --> 00:28:41,480 Speaker 1: is in the in the store, when you're buying an item, 608 00:28:41,520 --> 00:28:43,240 Speaker 1: you don't have all that much time to think about 609 00:28:43,640 --> 00:28:46,240 Speaker 1: the extended warranty, unlike maybe some of these other products. 610 00:28:46,400 --> 00:28:48,280 Speaker 1: They might send you home with information and you can 611 00:28:48,320 --> 00:28:50,800 Speaker 1: think about it and get back. Well, now you gotta 612 00:28:50,840 --> 00:28:52,600 Speaker 1: make a split second decision when it comes to the 613 00:28:52,600 --> 00:28:54,920 Speaker 1: extended warrant. So you're standing there, maybe there's people in 614 00:28:54,960 --> 00:28:57,200 Speaker 1: the line behind you. They swivel the screen around. It's 615 00:28:57,240 --> 00:29:00,160 Speaker 1: it's almost like the tip you know, it's like the 616 00:29:00,160 --> 00:29:02,000 Speaker 1: tip screen when it's like, okay, wait a minute, did 617 00:29:02,040 --> 00:29:06,040 Speaker 1: you already include gratuity that you know restaurants have been including. 618 00:29:06,240 --> 00:29:07,840 Speaker 1: So you're standing in there quickly doing the math like, 619 00:29:08,000 --> 00:29:09,680 Speaker 1: looking at the line items, I think the same thing 620 00:29:09,720 --> 00:29:11,320 Speaker 1: is true when it comes to these extended warranties. They 621 00:29:11,360 --> 00:29:12,920 Speaker 1: kind of throw it on you. They spring it on 622 00:29:12,960 --> 00:29:16,280 Speaker 1: you at the last seconds, and hopefully you aren't clicking 623 00:29:16,280 --> 00:29:19,280 Speaker 1: that X screen right. And plus, you just bought an 624 00:29:19,280 --> 00:29:21,960 Speaker 1: awesome new gizmo that you want to make sure is protected. 625 00:29:22,200 --> 00:29:23,680 Speaker 1: So that's part of it too, is you're like, well, 626 00:29:23,720 --> 00:29:25,800 Speaker 1: wait a second, if I don't get this and this 627 00:29:25,840 --> 00:29:28,160 Speaker 1: thing goes bust and the risk of being yeah, being 628 00:29:28,200 --> 00:29:30,480 Speaker 1: out a hundreds of dollars, yeah, exactly. You're like, I'm 629 00:29:30,480 --> 00:29:32,840 Speaker 1: gonna be so bummed if my new TV craps out 630 00:29:33,080 --> 00:29:36,200 Speaker 1: just outside the manufacturer's warrant period. I better sign up 631 00:29:36,240 --> 00:29:38,440 Speaker 1: for this, uh, just just to make sure that no 632 00:29:38,600 --> 00:29:41,440 Speaker 1: matter what, like, I'm not out hundreds and hundreds of dollars. 633 00:29:41,800 --> 00:29:43,880 Speaker 1: But here's the thing. These products are crappy on so 634 00:29:44,040 --> 00:29:46,239 Speaker 1: many levels. Yeah, maybe they do provide a little bit 635 00:29:46,240 --> 00:29:48,520 Speaker 1: of that peace of mind I was talking about, but 636 00:29:48,640 --> 00:29:51,680 Speaker 1: in reality, it's it's hard to get your money from 637 00:29:51,760 --> 00:29:54,240 Speaker 1: the insurance company if your item does experience an issue, 638 00:29:54,560 --> 00:29:56,840 Speaker 1: and on top of that, your item is unlikely to 639 00:29:57,040 --> 00:29:59,800 Speaker 1: have an issue. A lot of these electronic items. T 640 00:30:00,040 --> 00:30:03,720 Speaker 1: v's in particular, they experience issues so rarely that it 641 00:30:03,800 --> 00:30:07,120 Speaker 1: makes these extended warranties an even dumber decision. You're basically 642 00:30:07,240 --> 00:30:11,160 Speaker 1: ensuring against something that is highly highly unlikely. So yeah, 643 00:30:11,280 --> 00:30:14,640 Speaker 1: our advice is to avoid them all together. Either get 644 00:30:14,640 --> 00:30:16,960 Speaker 1: a good brand, or spend that money on a Consumer 645 00:30:17,000 --> 00:30:19,520 Speaker 1: Reports subscription because you can dive into their look at 646 00:30:19,520 --> 00:30:21,800 Speaker 1: the different ratings, but you're getting a quality product. It's 647 00:30:21,840 --> 00:30:25,120 Speaker 1: not always a name brand that experiences right the best 648 00:30:25,560 --> 00:30:28,640 Speaker 1: the best reviews or has the best reliability ratings. And 649 00:30:28,840 --> 00:30:30,680 Speaker 1: a place like Consumer Reports, yeah, is well worth the 650 00:30:30,720 --> 00:30:32,480 Speaker 1: money because it can help you figure that out on 651 00:30:32,680 --> 00:30:34,680 Speaker 1: so many items that you might be buying. Yeah, although 652 00:30:34,720 --> 00:30:37,200 Speaker 1: I will say anecdotally, the last TV we bought was 653 00:30:37,560 --> 00:30:40,000 Speaker 1: a cheaper sort of a no name brand, and we're 654 00:30:40,040 --> 00:30:42,680 Speaker 1: starting to have some issues within. I mean it has 655 00:30:42,760 --> 00:30:44,400 Speaker 1: been like four or five years that saying Ocdonald who 656 00:30:44,400 --> 00:30:46,680 Speaker 1: knows and and and here's the thing it's got. It's 657 00:30:46,680 --> 00:30:48,680 Speaker 1: got ghosting on the screen where I'm starting to see 658 00:30:48,680 --> 00:30:51,080 Speaker 1: like these light patches. It's like it's got a disease 659 00:30:51,160 --> 00:30:53,520 Speaker 1: or something. Well here's the thing though, how much you 660 00:30:53,640 --> 00:30:55,760 Speaker 1: can consider all this also Matt, how much you paid 661 00:30:55,800 --> 00:30:58,440 Speaker 1: for that TV? How much it's worth today? It's where 662 00:30:58,480 --> 00:31:00,600 Speaker 1: even if it's in perfect working order, it's probably worth 663 00:31:00,600 --> 00:31:03,920 Speaker 1: a hundred bucks, right, and you probably pay I paid 664 00:31:03,920 --> 00:31:06,080 Speaker 1: about hundred bucks. I feel like for did you really? No? 665 00:31:06,200 --> 00:31:07,640 Speaker 1: I mean not that we didn't pay that. There are 666 00:31:07,680 --> 00:31:10,600 Speaker 1: super cheap TVs and and TVs have only gotten cheaper, 667 00:31:10,720 --> 00:31:13,960 Speaker 1: which means that you're ensuring against a product that is 668 00:31:14,040 --> 00:31:16,520 Speaker 1: unlikely to fail, and even if it does, it's relatively 669 00:31:16,800 --> 00:31:19,680 Speaker 1: cheap because TVs have continue to go down in price. 670 00:31:19,960 --> 00:31:22,880 Speaker 1: It just makes no sense to buy that extended warranty 671 00:31:23,000 --> 00:31:24,959 Speaker 1: on an item like that. Yeah, And the same thing 672 00:31:25,040 --> 00:31:27,280 Speaker 1: is true when it comes to sell phone insurance as well, 673 00:31:27,760 --> 00:31:29,880 Speaker 1: because that might be something that you're paying for every 674 00:31:29,920 --> 00:31:33,040 Speaker 1: single month. That is another product that isn't worth paying for, 675 00:31:33,520 --> 00:31:36,960 Speaker 1: especially since some of the credit cards out there will 676 00:31:37,080 --> 00:31:40,320 Speaker 1: provide that protection for free. Uh. And so make sure 677 00:31:40,400 --> 00:31:43,360 Speaker 1: that you are considering some of the additional benefits that 678 00:31:43,520 --> 00:31:46,360 Speaker 1: come with credit cards because they will oftentimes double the 679 00:31:46,400 --> 00:31:49,760 Speaker 1: manufacturer's warranty. What what is the policy at costco? Is it? 680 00:31:49,800 --> 00:31:52,080 Speaker 1: Any electronic item that you buy at Costco? Is it 681 00:31:52,160 --> 00:31:53,920 Speaker 1: they will automatically double I think it. I think it 682 00:31:54,040 --> 00:31:57,040 Speaker 1: is if you buy buy with the Costco credit cards. 683 00:31:57,440 --> 00:32:00,320 Speaker 1: So for instance, like a refrigerator we bought had a 684 00:32:00,360 --> 00:32:03,120 Speaker 1: two year manufacturers warranty, and by by buying it at 685 00:32:03,200 --> 00:32:06,560 Speaker 1: Costco with the Costco credit card that they automatically doubled 686 00:32:06,600 --> 00:32:09,080 Speaker 1: it into a four year warranty. And so that's nice. 687 00:32:09,160 --> 00:32:11,560 Speaker 1: Same thing with my Mac computer here, it's kind of 688 00:32:11,600 --> 00:32:14,760 Speaker 1: pretty long warranty that was completely free of charge, just 689 00:32:14,880 --> 00:32:17,120 Speaker 1: based purely on where I bought it and what hard 690 00:32:17,120 --> 00:32:19,040 Speaker 1: I bought it with. Yeah, when you zoom out, I 691 00:32:19,120 --> 00:32:21,120 Speaker 1: think a question that's worth asking is like, what is 692 00:32:21,200 --> 00:32:23,960 Speaker 1: the purpose of insurance? And typically what you're trying to 693 00:32:24,120 --> 00:32:27,280 Speaker 1: do is to protect yourself from some financial uncertainty that 694 00:32:27,400 --> 00:32:29,000 Speaker 1: might happen, or just to make sure that you're able 695 00:32:29,040 --> 00:32:32,800 Speaker 1: to manage the financial setback that were you to incur, 696 00:32:32,920 --> 00:32:35,720 Speaker 1: were something to to break or go wrong. And that 697 00:32:35,840 --> 00:32:37,880 Speaker 1: makes sense when you're talking about something like a car, 698 00:32:38,280 --> 00:32:40,760 Speaker 1: right like that cars are typically pretty expensive, or that 699 00:32:40,840 --> 00:32:44,280 Speaker 1: it makes sense when you're talking about covering the lost 700 00:32:44,360 --> 00:32:48,160 Speaker 1: income of a partner or of a parent. I couldn't 701 00:32:48,160 --> 00:32:50,240 Speaker 1: imagine trying to not only deal with the death of 702 00:32:50,280 --> 00:32:52,120 Speaker 1: a loved one like that, but also dealing with the 703 00:32:52,160 --> 00:32:55,640 Speaker 1: financial ramifications of losing their income. But when it comes 704 00:32:55,680 --> 00:32:57,840 Speaker 1: to all of these smaller items like like covering the 705 00:32:57,920 --> 00:33:01,800 Speaker 1: cost of a cell phone or of of an electronic device, 706 00:33:02,320 --> 00:33:04,640 Speaker 1: these are tiny, tiny little storms that we should be 707 00:33:04,680 --> 00:33:08,680 Speaker 1: able to weather without having to overly complicate our lives 708 00:33:08,880 --> 00:33:13,040 Speaker 1: by purchasing another insurance product. I agree, and and Matt. 709 00:33:13,120 --> 00:33:16,080 Speaker 1: There's even insurance for the inability to pay your credit card, 710 00:33:16,120 --> 00:33:18,440 Speaker 1: which I think is kind of nuts. You know that, 711 00:33:19,080 --> 00:33:21,720 Speaker 1: would you like some insurance for your insurance? Right exactly? 712 00:33:21,920 --> 00:33:24,760 Speaker 1: Insurance on the insurance. It really is like there's an 713 00:33:24,760 --> 00:33:27,680 Speaker 1: insurance product for everything, and you can assure against everything. 714 00:33:27,800 --> 00:33:30,240 Speaker 1: But really there's just a few basic forms of insurance 715 00:33:30,320 --> 00:33:32,240 Speaker 1: that you need a lot of these other things are 716 00:33:32,480 --> 00:33:36,479 Speaker 1: completely unnecessary. All right, but we have more crappy financial products. 717 00:33:36,680 --> 00:33:38,880 Speaker 1: We haven't run the gamut. There are still more that 718 00:33:38,920 --> 00:33:40,719 Speaker 1: we have to share with you, and one of them 719 00:33:40,840 --> 00:33:43,400 Speaker 1: is about where you buy things. If you buy it 720 00:33:43,480 --> 00:33:46,320 Speaker 1: this one kind of place, every time you shop there, 721 00:33:46,520 --> 00:33:48,440 Speaker 1: you're doing yourself a disservice. We'll get to that and 722 00:33:48,520 --> 00:33:59,760 Speaker 1: more right after this break. All right, we're back from 723 00:33:59,800 --> 00:34:02,720 Speaker 1: the discussing some of the financial products out there that 724 00:34:02,840 --> 00:34:06,240 Speaker 1: you should be avoiding. And Joel, you alluded to this 725 00:34:06,360 --> 00:34:09,120 Speaker 1: one where you make your purchases make a big difference. 726 00:34:09,280 --> 00:34:12,160 Speaker 1: And this isn't just a plug for Costco either, But 727 00:34:12,239 --> 00:34:14,719 Speaker 1: folks like you've heard discover payday loans and title loans. 728 00:34:15,120 --> 00:34:18,000 Speaker 1: They are some of the worst financial products ever devised. Obviously, 729 00:34:18,040 --> 00:34:20,479 Speaker 1: they're they're certainly predatory. They've been known to charge folks 730 00:34:20,560 --> 00:34:23,839 Speaker 1: hundreds of percentage points and interest. But rents to own 731 00:34:24,040 --> 00:34:28,080 Speaker 1: stores are another pretty awful financial location. They offer products 732 00:34:28,160 --> 00:34:32,120 Speaker 1: that often prey on lower income folks because yeah, what's 733 00:34:32,160 --> 00:34:34,759 Speaker 1: worse than paying interest to the credit card companies? These 734 00:34:34,960 --> 00:34:38,040 Speaker 1: rent to own places and you you likely have heard 735 00:34:38,040 --> 00:34:41,399 Speaker 1: their names. They advertise on daytime TV. They lower folks 736 00:34:41,440 --> 00:34:43,160 Speaker 1: in to rent the stuff they need with the goal 737 00:34:43,640 --> 00:34:46,719 Speaker 1: of you being able to eventually own that stuff. You know, 738 00:34:46,920 --> 00:34:48,719 Speaker 1: someday you will be able to own that TV, that 739 00:34:48,800 --> 00:34:53,920 Speaker 1: bedroom set, that nice sectional sofa over time, over a 740 00:34:54,080 --> 00:34:56,480 Speaker 1: period of months where you're making payments. And it sounds 741 00:34:56,480 --> 00:34:58,480 Speaker 1: good because you can pay for the item you need 742 00:34:58,760 --> 00:35:01,040 Speaker 1: over time as you are renting it, But the final 743 00:35:01,120 --> 00:35:03,960 Speaker 1: cost of that item can be multiple times what it 744 00:35:03,960 --> 00:35:07,520 Speaker 1: would cost you elsewhere. This is how a five laptop 745 00:35:07,640 --> 00:35:10,760 Speaker 1: could cost you over two thousand dollars over the years, 746 00:35:10,800 --> 00:35:13,680 Speaker 1: over the course of making those payments. And I mean, 747 00:35:13,760 --> 00:35:16,480 Speaker 1: how else, Matt by charging two thousand dollars for five 748 00:35:16,800 --> 00:35:19,480 Speaker 1: dollar laptop, could this company be able to afford a 749 00:35:19,520 --> 00:35:23,120 Speaker 1: spokesperson like Mr t Right, who does I think for 750 00:35:23,280 --> 00:35:25,520 Speaker 1: for one of these major rent own chains. He's in 751 00:35:25,560 --> 00:35:27,200 Speaker 1: a lot of those advertisements as he. I feel like 752 00:35:27,200 --> 00:35:31,160 Speaker 1: we're dating our He didn't come cheap man, remember seeing him. 753 00:35:31,200 --> 00:35:32,759 Speaker 1: I've not watched the A team growing up back in 754 00:35:32,840 --> 00:35:34,960 Speaker 1: the day, but I feel like I haven't seen that 755 00:35:35,000 --> 00:35:37,680 Speaker 1: particular commercial. Everybody in a while. Everybody knows Mr Tita, 756 00:35:38,280 --> 00:35:39,880 Speaker 1: but I think he's still on the website. Maybe is 757 00:35:39,920 --> 00:35:42,440 Speaker 1: it really Yeah? I think so. But like a lifetime endorsement, 758 00:35:42,520 --> 00:35:44,279 Speaker 1: I think I think they got him. I think they 759 00:35:44,320 --> 00:35:46,319 Speaker 1: got him. Yeah, for for good. He should have read 760 00:35:46,360 --> 00:35:48,759 Speaker 1: that that fine tie he should have there, like now 761 00:35:49,239 --> 00:35:51,200 Speaker 1: we we rented you, but now we own you, Mr 762 00:35:51,320 --> 00:35:55,440 Speaker 1: t And so Yeah. Huge amounts of the items that 763 00:35:55,520 --> 00:35:58,960 Speaker 1: people get through a rent to own store, It's it's crazy. 764 00:35:59,760 --> 00:36:02,800 Speaker 1: Many those items are eventually repossessed. So you're renting that 765 00:36:02,920 --> 00:36:04,920 Speaker 1: item you think pretty soon you're gonna own it. You 766 00:36:04,960 --> 00:36:08,000 Speaker 1: miss a payment or two, and pretty quickly that same 767 00:36:08,040 --> 00:36:10,680 Speaker 1: store has come back to grab that sectional, TV, laptop, 768 00:36:10,760 --> 00:36:13,839 Speaker 1: whatever it is because you couldn't afford you couldn't keep 769 00:36:13,920 --> 00:36:16,120 Speaker 1: up with the payments. And so, honestly, Matt, it would 770 00:36:16,120 --> 00:36:18,480 Speaker 1: be better to sit on the floor with with no 771 00:36:18,640 --> 00:36:22,719 Speaker 1: sectional or with with no laptop or TV than to 772 00:36:22,800 --> 00:36:25,959 Speaker 1: get your new possessions from any of these businesses, because 773 00:36:26,000 --> 00:36:28,520 Speaker 1: they are the worst and what they're doing, they're counting 774 00:36:28,560 --> 00:36:31,080 Speaker 1: on charging you way more than the item is worth 775 00:36:31,520 --> 00:36:33,480 Speaker 1: if you actually do end up possessing it in the end, 776 00:36:33,960 --> 00:36:36,560 Speaker 1: or charging you for products and then taking it back 777 00:36:36,800 --> 00:36:38,759 Speaker 1: because you can't afford the payments, and so, yeah, this 778 00:36:38,840 --> 00:36:41,600 Speaker 1: is definitely one of the most nefarious financial products places 779 00:36:41,680 --> 00:36:44,960 Speaker 1: to get products is these are these rent to own source. Yeah, 780 00:36:45,000 --> 00:36:46,600 Speaker 1: a lot of folks, I think they're probably hearing us 781 00:36:46,600 --> 00:36:48,200 Speaker 1: talk about this and they're about to tune out because 782 00:36:48,200 --> 00:36:50,200 Speaker 1: they're like, I would never go into a place like that. 783 00:36:50,360 --> 00:36:51,960 Speaker 1: I'm not, that's not that's not an issue that I 784 00:36:52,040 --> 00:36:55,920 Speaker 1: deal with. But cash advances are becoming something else to 785 00:36:55,960 --> 00:36:58,160 Speaker 1: watch out for, because you know, these used to appeal 786 00:36:58,239 --> 00:37:01,239 Speaker 1: solely to folks who were living paycheck to paycheck, but 787 00:37:01,520 --> 00:37:05,000 Speaker 1: now they're becoming more mainstream for for for milk class 788 00:37:05,000 --> 00:37:07,360 Speaker 1: folks as well via the different apps out there that 789 00:37:07,440 --> 00:37:11,120 Speaker 1: allow early access. There are a number of these different apps. 790 00:37:11,200 --> 00:37:14,480 Speaker 1: They all have kind of these cool cute names. Uh 791 00:37:14,640 --> 00:37:20,120 Speaker 1: some funzos bite that much. But like the big strategy, Like, 792 00:37:20,200 --> 00:37:22,560 Speaker 1: I think the main way that they're able to convince 793 00:37:22,680 --> 00:37:25,279 Speaker 1: us to use these apps is that they're able to 794 00:37:26,120 --> 00:37:29,120 Speaker 1: skirt some of the payday lender laws because they charge 795 00:37:29,200 --> 00:37:31,120 Speaker 1: a fee and I feel like it's this big trick 796 00:37:31,200 --> 00:37:33,319 Speaker 1: that they're able to pull on the consumer because they're 797 00:37:33,360 --> 00:37:35,919 Speaker 1: tapping into that so almost like that subscription mindset where 798 00:37:36,000 --> 00:37:37,680 Speaker 1: you think, oh, I'm willing to pay a few bucks 799 00:37:37,880 --> 00:37:41,080 Speaker 1: to have access to this service well streaming or something 800 00:37:41,200 --> 00:37:43,839 Speaker 1: like that, and it's not being broken out into your 801 00:37:43,920 --> 00:37:46,560 Speaker 1: annual percentage rate. But when you do the math, when 802 00:37:46,560 --> 00:37:49,480 Speaker 1: you calculate how much you're actually paying by taking into 803 00:37:49,520 --> 00:37:51,400 Speaker 1: account the fee that you're paying with the amount of 804 00:37:51,400 --> 00:37:53,719 Speaker 1: money that you have access to, you're paying anywhere from 805 00:37:53,760 --> 00:37:57,960 Speaker 1: a percent to over in interest, which of course is 806 00:37:58,040 --> 00:38:00,480 Speaker 1: terrible that certainly rivals paid a loans take a paid 807 00:38:00,480 --> 00:38:02,759 Speaker 1: a loan with acute to your name and a better 808 00:38:02,840 --> 00:38:04,920 Speaker 1: logo is what it is, and more accessible at your 809 00:38:04,960 --> 00:38:08,439 Speaker 1: fingertips and more socially acceptable. And some of these pay 810 00:38:08,480 --> 00:38:10,439 Speaker 1: loans three point right and some of these apps, Matt, 811 00:38:10,480 --> 00:38:12,920 Speaker 1: they they actually go based on tips as they have 812 00:38:12,960 --> 00:38:15,279 Speaker 1: these suggested tips kind of kind of like what you 813 00:38:15,320 --> 00:38:16,759 Speaker 1: have at the coffee shop or whatever it might be, 814 00:38:17,280 --> 00:38:20,200 Speaker 1: and you feel guilty by not participating and giving the 815 00:38:20,280 --> 00:38:22,680 Speaker 1: tip that they suggest based on the amount that you're borrowing, 816 00:38:22,960 --> 00:38:25,520 Speaker 1: and so one in particular no fees, and they're like, 817 00:38:25,719 --> 00:38:30,480 Speaker 1: it's completely free. You just tip and what you feel like. 818 00:38:30,880 --> 00:38:32,880 Speaker 1: But then the tip comes front and center. I am 819 00:38:32,960 --> 00:38:34,920 Speaker 1: curious and there's some guilt behind that. Well that's the thing. 820 00:38:34,960 --> 00:38:36,839 Speaker 1: I'm curious to see how long they're gonna last, because 821 00:38:36,840 --> 00:38:38,880 Speaker 1: I think so much of that guilt, so much of 822 00:38:38,920 --> 00:38:42,040 Speaker 1: that pressure comes from other individuals. And you know, whether 823 00:38:42,080 --> 00:38:45,080 Speaker 1: it's you standing behind somebody is waiting on you, or 824 00:38:45,160 --> 00:38:48,320 Speaker 1: or you've got someone who serge you your coffee and 825 00:38:48,320 --> 00:38:51,520 Speaker 1: they're kind of they're looking at you, or they ask you, 826 00:38:51,719 --> 00:38:53,439 Speaker 1: they're like, am I gonna spit in this? Lottepe depends 827 00:38:53,480 --> 00:38:55,960 Speaker 1: on what you tip, Whereas when you're sitting there at 828 00:38:56,000 --> 00:38:57,920 Speaker 1: home and you're on the app by yourself. I think 829 00:38:58,080 --> 00:39:00,440 Speaker 1: it is going to be easier for you to bypass 830 00:39:00,520 --> 00:39:01,839 Speaker 1: that screen if you want to be able to take 831 00:39:01,840 --> 00:39:04,160 Speaker 1: advantage of getting that money a little bit early. But 832 00:39:04,360 --> 00:39:06,759 Speaker 1: it'll be interesting to see if they stick around, because 833 00:39:06,800 --> 00:39:08,520 Speaker 1: if they change around for years now, and I will 834 00:39:08,560 --> 00:39:11,760 Speaker 1: say they have maybe got a ton of venture funding 835 00:39:11,880 --> 00:39:14,439 Speaker 1: or something maybe, but they've also been people do leave 836 00:39:14,520 --> 00:39:16,399 Speaker 1: tips because they feel like this is a service that's 837 00:39:16,400 --> 00:39:19,000 Speaker 1: helping me out. I should give them a little percentage back, 838 00:39:19,040 --> 00:39:20,840 Speaker 1: and I think it's more of an emotional ploy and 839 00:39:20,960 --> 00:39:22,759 Speaker 1: unless I'm sitting down and doing the math, that's right. 840 00:39:22,840 --> 00:39:24,799 Speaker 1: That's right. So you gotta watch out for those those 841 00:39:24,840 --> 00:39:29,440 Speaker 1: are no longer in the nether regions of the financial 842 00:39:29,719 --> 00:39:32,560 Speaker 1: service sector, like those cash advances or something you can 843 00:39:32,600 --> 00:39:35,520 Speaker 1: get at your fingertips, and they're becoming they're becoming more 844 00:39:35,680 --> 00:39:39,120 Speaker 1: readily used by people of all income levels. And so 845 00:39:39,719 --> 00:39:42,680 Speaker 1: another another financial service when you talk about that that 846 00:39:42,840 --> 00:39:46,759 Speaker 1: sucks that you should avoid is identity theft protection, and 847 00:39:47,040 --> 00:39:49,439 Speaker 1: that sort of service can cost you anywhere between seven 848 00:39:49,480 --> 00:39:52,080 Speaker 1: dollars and thirty five dollars a month. That's for the 849 00:39:52,160 --> 00:39:54,279 Speaker 1: premium service. You want the good one with all the 850 00:39:54,320 --> 00:39:56,719 Speaker 1: slick features and all mail you a bottle of line. 851 00:39:57,920 --> 00:40:01,759 Speaker 1: If right, then might make it more for that much money. Yeah, 852 00:40:01,960 --> 00:40:05,000 Speaker 1: you better expect a lot more than literally just identity 853 00:40:05,040 --> 00:40:09,520 Speaker 1: theft protection at that four year pract point. But here's 854 00:40:09,560 --> 00:40:12,880 Speaker 1: the thing. The saddest part about these these this service 855 00:40:12,960 --> 00:40:17,440 Speaker 1: in particulars that a superior service exists for free. We've 856 00:40:17,480 --> 00:40:19,759 Speaker 1: said it before, we'll say it again. Take advantage of 857 00:40:19,800 --> 00:40:22,439 Speaker 1: the ability you have to freeze your credit. It's quick, 858 00:40:22,560 --> 00:40:25,200 Speaker 1: it's easy, and cost you zero dollars. We have an 859 00:40:25,280 --> 00:40:27,040 Speaker 1: article that will put in the show notes about how 860 00:40:27,080 --> 00:40:29,680 Speaker 1: to go about doing that. It'll take you almost no time, 861 00:40:30,080 --> 00:40:33,480 Speaker 1: and then you've got the best product working to help 862 00:40:33,560 --> 00:40:37,040 Speaker 1: you protect your credit with no money out of your pocket. Yeah, 863 00:40:37,080 --> 00:40:38,960 Speaker 1: and there are a lot of crappy financial products in 864 00:40:39,000 --> 00:40:42,640 Speaker 1: the credit space, in particular. Any company out there who 865 00:40:42,680 --> 00:40:45,160 Speaker 1: says that they can repair your credit score is another 866 00:40:45,200 --> 00:40:47,200 Speaker 1: one that you just want to avoid. Like really paying 867 00:40:47,280 --> 00:40:50,520 Speaker 1: anyone any money for anything credit related, it's probably a 868 00:40:50,600 --> 00:40:53,920 Speaker 1: no go. Just completely skip over those folks and instead 869 00:40:54,040 --> 00:40:56,560 Speaker 1: just freeze your credit, just like juele mention. Yeah, and 870 00:40:56,719 --> 00:40:58,320 Speaker 1: and that this falls under the too good to be 871 00:40:58,360 --> 00:41:00,399 Speaker 1: true category. It's like, we can raise your credit score 872 00:41:00,400 --> 00:41:02,920 Speaker 1: a hundred fifty points in a month. Just trust us 873 00:41:02,960 --> 00:41:05,920 Speaker 1: and pay us some you know, and we'll have it 874 00:41:06,040 --> 00:41:07,800 Speaker 1: up there in no time. So then guess what you 875 00:41:07,880 --> 00:41:10,560 Speaker 1: qualify for that car loan you couldn't have qualified for before, 876 00:41:10,719 --> 00:41:12,960 Speaker 1: or for that mortgage that otherwise you wouldn't be able 877 00:41:12,960 --> 00:41:14,920 Speaker 1: to get because you know it's holding you back right 878 00:41:14,960 --> 00:41:17,480 Speaker 1: now is that credit score. But the thing is those 879 00:41:17,520 --> 00:41:19,239 Speaker 1: people can't do it, and if they can, they're doing 880 00:41:19,280 --> 00:41:21,759 Speaker 1: it by fraudulent means, and it only lasts for a 881 00:41:21,800 --> 00:41:23,880 Speaker 1: short period of time. It's a mirage, it's a shadow. 882 00:41:24,200 --> 00:41:26,200 Speaker 1: Those are the kind of services that you need to avoid, 883 00:41:26,320 --> 00:41:29,480 Speaker 1: like the plague. Let's talk about alternative investments for just 884 00:41:29,640 --> 00:41:31,520 Speaker 1: a second. We have talked about these on the show before. 885 00:41:31,560 --> 00:41:33,799 Speaker 1: We did dedicated a whole episode actually to them back 886 00:41:33,840 --> 00:41:36,279 Speaker 1: into four forty six. We did a deep dive, and 887 00:41:36,400 --> 00:41:40,239 Speaker 1: they should be avoided in most cases too. Basically, alternative 888 00:41:40,360 --> 00:41:42,719 Speaker 1: investments it's a sphere where there are just all sorts 889 00:41:42,760 --> 00:41:45,200 Speaker 1: of funky ways that you can invest and and and 890 00:41:45,280 --> 00:41:48,560 Speaker 1: they're becoming more and more appealing to folks. The boring 891 00:41:49,000 --> 00:41:51,760 Speaker 1: way that Matt and I suggest is no longer in vogue, 892 00:41:52,080 --> 00:41:54,960 Speaker 1: and so sinking your hard earned money into farmland, whiskey, 893 00:41:55,160 --> 00:41:58,480 Speaker 1: digital art, or even bits of physical arts, having small 894 00:41:58,560 --> 00:42:02,120 Speaker 1: shares in the owners tip of Picasso or another famous 895 00:42:02,160 --> 00:42:04,480 Speaker 1: piece by another artist. You know, those are all potential 896 00:42:04,560 --> 00:42:08,719 Speaker 1: ways to invest your money for the future. And while 897 00:42:08,719 --> 00:42:11,040 Speaker 1: I do think it's cool that it's possible now to 898 00:42:11,160 --> 00:42:13,960 Speaker 1: do this, that doesn't mean that it's something any of 899 00:42:14,040 --> 00:42:17,960 Speaker 1: us should be participating in because the more complex investments 900 00:42:18,000 --> 00:42:20,560 Speaker 1: are often more a liquid, they come with higher fees, 901 00:42:20,840 --> 00:42:23,760 Speaker 1: and they can just be a time waster. Right, simple 902 00:42:23,840 --> 00:42:27,360 Speaker 1: boring investing with nine plus percent of your portfolio is 903 00:42:27,400 --> 00:42:30,799 Speaker 1: still the way to go. These alternative investments are something 904 00:42:30,880 --> 00:42:32,920 Speaker 1: that take your eye off the prize. They're taking you 905 00:42:33,239 --> 00:42:35,439 Speaker 1: away from what you really should be doing to build wealth. 906 00:42:35,680 --> 00:42:37,400 Speaker 1: And a lot of these platforms they're making a lot 907 00:42:37,440 --> 00:42:39,680 Speaker 1: of money at the same time while they're taking you, 908 00:42:40,400 --> 00:42:42,560 Speaker 1: taking your focus away from where it really needs to be. 909 00:42:42,800 --> 00:42:44,960 Speaker 1: That's Rachel. And so we've talked through some of these 910 00:42:45,000 --> 00:42:47,640 Speaker 1: different financial crappy financial products that are out there, so 911 00:42:47,760 --> 00:42:49,560 Speaker 1: that as you're listening to this, you know to avoid 912 00:42:49,600 --> 00:42:52,080 Speaker 1: these things. Uh these products, But I think It's also 913 00:42:52,239 --> 00:42:54,160 Speaker 1: important to point out that you should be looking out 914 00:42:54,280 --> 00:42:58,120 Speaker 1: for other folks um thinking about like parents or grandparents specifically, 915 00:42:58,200 --> 00:43:02,680 Speaker 1: who may not be us financially or tech savvy like it. 916 00:43:02,840 --> 00:43:05,760 Speaker 1: It sucks that some of these crappy financial products exist, 917 00:43:06,440 --> 00:43:08,160 Speaker 1: but it's the part of reality of living in a 918 00:43:08,320 --> 00:43:12,960 Speaker 1: free society. Due diligence is required on our part in 919 00:43:13,120 --> 00:43:15,160 Speaker 1: order to stay safe. It does come down to us 920 00:43:15,200 --> 00:43:18,839 Speaker 1: as individuals. And since your how the money listener, who 921 00:43:19,160 --> 00:43:21,719 Speaker 1: likely has more knowledge than the average person, we want 922 00:43:21,760 --> 00:43:24,360 Speaker 1: you to use it to be helpful when other folks 923 00:43:24,440 --> 00:43:26,400 Speaker 1: might be wandering down a path towards one of these 924 00:43:26,400 --> 00:43:28,480 Speaker 1: financial products. So keep that in mind as well. Yeah, 925 00:43:28,600 --> 00:43:30,840 Speaker 1: use your knowledge for good to help other people. I 926 00:43:30,840 --> 00:43:33,600 Speaker 1: think it's great advice, Matt. And and ultimately, you know, 927 00:43:33,680 --> 00:43:35,960 Speaker 1: we didn't get to cover everything. There are there are 928 00:43:36,040 --> 00:43:38,480 Speaker 1: other crappy financial products out there. We didn't run the 929 00:43:38,560 --> 00:43:41,800 Speaker 1: full gamut, and there are always new ones being devised 930 00:43:41,840 --> 00:43:44,960 Speaker 1: to Usually what it points back to is someone is 931 00:43:44,960 --> 00:43:46,919 Speaker 1: telling you something that is too good to be true. 932 00:43:47,160 --> 00:43:49,400 Speaker 1: It sounds nice, it's got a ring to it, it 933 00:43:49,480 --> 00:43:51,440 Speaker 1: makes you feel all the things you want to feel, 934 00:43:51,640 --> 00:43:54,200 Speaker 1: and it's often telling you that the downside is minimal 935 00:43:54,239 --> 00:43:58,239 Speaker 1: to non existence, which sounds really great, but often what 936 00:43:58,400 --> 00:44:01,359 Speaker 1: that means in reality is that you're being sold something 937 00:44:01,480 --> 00:44:04,960 Speaker 1: that is inferior to other products you could or should 938 00:44:05,000 --> 00:44:06,759 Speaker 1: be in. And here's what to look out for if 939 00:44:06,840 --> 00:44:11,120 Speaker 1: you're just giving a brief brief synopsis. Sales right, salesmanship 940 00:44:11,440 --> 00:44:13,560 Speaker 1: a pressure to buy something that you don't need that 941 00:44:13,800 --> 00:44:16,040 Speaker 1: is often involved. It's at the heart, it's at the 942 00:44:16,080 --> 00:44:18,839 Speaker 1: core of many of these crappy financial products, is someone 943 00:44:18,920 --> 00:44:20,600 Speaker 1: trying to sell it to you and they're putting a 944 00:44:20,600 --> 00:44:22,520 Speaker 1: lot of pressure on you to do it. Complex E 945 00:44:22,640 --> 00:44:25,839 Speaker 1: is another feature of basically all of these financial products too. 946 00:44:26,360 --> 00:44:28,600 Speaker 1: It's it's someone trying to get you to buy something 947 00:44:28,680 --> 00:44:34,240 Speaker 1: that you don't understand. It's a product that sounds yeah, exactly, 948 00:44:34,480 --> 00:44:36,719 Speaker 1: And that's why the contract is actually thirty pages that 949 00:44:36,800 --> 00:44:39,120 Speaker 1: goes along with that financial product because it does have 950 00:44:39,360 --> 00:44:41,600 Speaker 1: a little a lot of devious moving parts. So you 951 00:44:41,640 --> 00:44:44,360 Speaker 1: want to avoid anything that's overly complex that you can't understand. 952 00:44:44,440 --> 00:44:46,040 Speaker 1: Like we always say, if you can't explain it to 953 00:44:46,160 --> 00:44:48,160 Speaker 1: an eight year old, you don't want any part of it. 954 00:44:48,680 --> 00:44:51,360 Speaker 1: Another part of this, too, is is not buying stuff 955 00:44:51,400 --> 00:44:53,680 Speaker 1: you don't need write some of the products, like in 956 00:44:53,760 --> 00:44:56,600 Speaker 1: those rent to own stores, they pray on your aspiration 957 00:44:56,719 --> 00:44:58,560 Speaker 1: to own nicer stuff, and they try to make it 958 00:44:58,680 --> 00:45:01,000 Speaker 1: sound like it's going to be easy to outfit your 959 00:45:01,040 --> 00:45:03,320 Speaker 1: new house because all you gotta do is pay a 960 00:45:03,360 --> 00:45:06,239 Speaker 1: little monthly fee. But we would say save more cash 961 00:45:06,360 --> 00:45:10,360 Speaker 1: is king you don't want to aspirationally buy from places 962 00:45:10,400 --> 00:45:12,359 Speaker 1: that are going to take advantage of you. And last, 963 00:45:12,520 --> 00:45:14,960 Speaker 1: but not least, having money in the bank means you 964 00:45:15,000 --> 00:45:16,600 Speaker 1: don't need a lot of these products to begin with. 965 00:45:17,000 --> 00:45:20,200 Speaker 1: Banking on yourself, having an emergency fund and having savings 966 00:45:20,320 --> 00:45:22,680 Speaker 1: beyond that mean that a lot of these products that 967 00:45:22,760 --> 00:45:26,319 Speaker 1: are targeted towards you as protecting you in the case 968 00:45:26,400 --> 00:45:29,280 Speaker 1: of a rainy day, Well, guess what, You've already protected 969 00:45:29,280 --> 00:45:31,120 Speaker 1: yourself in the case of a rainy day. If you've 970 00:45:31,160 --> 00:45:33,440 Speaker 1: got a decent chunk of cash on hand in your 971 00:45:33,480 --> 00:45:35,560 Speaker 1: savings account, you don't need to bother with most of 972 00:45:35,640 --> 00:45:38,200 Speaker 1: these products. If that's the case. And so yeah, hopefully 973 00:45:38,280 --> 00:45:40,600 Speaker 1: from here on out, you're gonna know when someone's trying 974 00:45:40,600 --> 00:45:43,000 Speaker 1: to sell you something crappy. It sounds real nice and 975 00:45:43,120 --> 00:45:45,879 Speaker 1: in reality it's not so good, and it's gonna harm 976 00:45:45,920 --> 00:45:48,840 Speaker 1: you financially, and there are ways that you can avoid 977 00:45:48,920 --> 00:45:51,920 Speaker 1: them pretty easily, ways that you can protect yourself. You 978 00:45:51,960 --> 00:45:54,040 Speaker 1: don't need what these sales folks have to offer you. 979 00:45:54,239 --> 00:45:56,840 Speaker 1: That's right. And jumping back a point you mentioned just 980 00:45:57,000 --> 00:46:00,200 Speaker 1: how we have maybe aspirations to own nice stuff. It 981 00:46:00,360 --> 00:46:02,040 Speaker 1: is not that we don't want you to have nice stuff. 982 00:46:02,080 --> 00:46:04,120 Speaker 1: We just want you to pay cash for it. It's 983 00:46:04,160 --> 00:46:06,879 Speaker 1: how we approach many things in our lives, including how 984 00:46:06,960 --> 00:46:09,960 Speaker 1: we approach our splurge, which is craft beer. Uh. And 985 00:46:10,080 --> 00:46:12,880 Speaker 1: so we definitely didn't rents own this beer that we're 986 00:46:12,960 --> 00:46:15,520 Speaker 1: drinking today, which is it couldn't get it back for 987 00:46:15,560 --> 00:46:20,080 Speaker 1: me anyway, So they're not gonna RePOP this beer. This 988 00:46:20,239 --> 00:46:22,680 Speaker 1: is a Wrigley Fields Forever, which is a strawberry and 989 00:46:22,719 --> 00:46:25,839 Speaker 1: basil sour by. Good word, we enjoyed one of their 990 00:46:25,880 --> 00:46:27,840 Speaker 1: beers last week. But Joe, what were your thoughts on 991 00:46:27,920 --> 00:46:31,160 Speaker 1: this sour man? I thought it was great and one. 992 00:46:31,760 --> 00:46:34,160 Speaker 1: Wrigley Field is an awesome place to catch a baseball game. 993 00:46:34,200 --> 00:46:36,520 Speaker 1: I've only sadly been there once, but I want to 994 00:46:36,520 --> 00:46:40,160 Speaker 1: go back, and I thought this beer was vibrantly tart. 995 00:46:40,239 --> 00:46:42,160 Speaker 1: It is how I'm gonna put it, it kind of 996 00:46:42,320 --> 00:46:45,400 Speaker 1: taste to me like a neon color looks. It just 997 00:46:45,480 --> 00:46:47,920 Speaker 1: had like a really a really strong punch to the cheeks. 998 00:46:47,960 --> 00:46:50,000 Speaker 1: Good description. Yeah, And and I mean that in the 999 00:46:50,080 --> 00:46:52,520 Speaker 1: best way possible, because like a neon pink or a 1000 00:46:52,560 --> 00:46:55,960 Speaker 1: neon orange's like it's it vibrates a little bit. Yeah. Yeah, 1001 00:46:56,000 --> 00:46:59,480 Speaker 1: and this beer kind of had that active, active tartness 1002 00:46:59,520 --> 00:47:02,200 Speaker 1: going on. And I love I love strawberries and a beer. 1003 00:47:02,640 --> 00:47:06,120 Speaker 1: Strawberry and basil worked well together, and so yeah, I 1004 00:47:06,239 --> 00:47:08,440 Speaker 1: like the beer from Good Word last week, but I 1005 00:47:08,560 --> 00:47:10,239 Speaker 1: like this one a whole lot more. This is this 1006 00:47:10,320 --> 00:47:12,040 Speaker 1: is when I'm be drinking more of Yeah, I'm actually 1007 00:47:12,080 --> 00:47:15,080 Speaker 1: surprised at how much I like this. Sometimes breweries will 1008 00:47:15,280 --> 00:47:18,200 Speaker 1: go with strawberry as a flavoring and a beer, and 1009 00:47:18,760 --> 00:47:20,600 Speaker 1: this one doesn't necessarily say that it was going to 1010 00:47:20,640 --> 00:47:23,000 Speaker 1: be barrel aged or anything like that with being on 1011 00:47:23,239 --> 00:47:26,640 Speaker 1: actual strawberries. And I have had strawberry beers before that 1012 00:47:26,680 --> 00:47:31,000 Speaker 1: were bad where it tasted like artificial strawberry flavor as 1013 00:47:31,040 --> 00:47:33,719 Speaker 1: opposed to real strawberry, and this tastes like real strawberry. 1014 00:47:33,880 --> 00:47:35,480 Speaker 1: So whether they were able to coax that out of 1015 00:47:35,560 --> 00:47:39,279 Speaker 1: a chemical from New Jersey, the New Jersey Turmpike. That's 1016 00:47:39,280 --> 00:47:41,000 Speaker 1: where they get all like the different sents and flavorings. 1017 00:47:41,400 --> 00:47:44,160 Speaker 1: It's like a food thing um or if they use 1018 00:47:44,200 --> 00:47:47,120 Speaker 1: actual strawberry. Either way, they got me fooled. But I 1019 00:47:47,200 --> 00:47:49,640 Speaker 1: agree the strawberry and basil work really good together. It's 1020 00:47:49,680 --> 00:47:52,520 Speaker 1: a good combination that kind of has that fruit mixed 1021 00:47:52,520 --> 00:47:55,640 Speaker 1: alongside that herbal nature that those herbal flavors that you 1022 00:47:55,719 --> 00:47:57,239 Speaker 1: get from basil. But this is a this is a 1023 00:47:57,280 --> 00:47:59,920 Speaker 1: good one. This is another brewery here out of Georgia. 1024 00:48:00,000 --> 00:48:02,520 Speaker 1: They're up there in Dulooth, so be sure to check 1025 00:48:02,600 --> 00:48:04,560 Speaker 1: them out if you happen to be in the area. 1026 00:48:05,080 --> 00:48:06,560 Speaker 1: And we will make sure to link to any of 1027 00:48:06,560 --> 00:48:09,560 Speaker 1: the different resources that we have mentioned during this episode. 1028 00:48:09,760 --> 00:48:12,440 Speaker 1: Will be sure to include some of the different alternatives 1029 00:48:12,560 --> 00:48:15,319 Speaker 1: to these crappy products that we mentioned, and you can 1030 00:48:15,360 --> 00:48:16,919 Speaker 1: find that up on the website at how the Money 1031 00:48:17,040 --> 00:48:18,960 Speaker 1: dot com no doubt. By the way, if you've been 1032 00:48:18,960 --> 00:48:20,719 Speaker 1: listening to How the Money for a while and you 1033 00:48:20,840 --> 00:48:23,440 Speaker 1: haven't yet left for review, we would appreciate your thoughtful 1034 00:48:23,440 --> 00:48:27,080 Speaker 1: review on Apple Podcasts or Spotify, wherever you listen to podcasts. 1035 00:48:27,440 --> 00:48:30,160 Speaker 1: It goes a long way helping other people find out 1036 00:48:30,200 --> 00:48:32,879 Speaker 1: about what we're up to here at HTM, but Matt, 1037 00:48:32,920 --> 00:48:35,239 Speaker 1: that's gonna do it for this episode, So until next time, 1038 00:48:35,440 --> 00:48:37,279 Speaker 1: Best Friends Out, Best Friends Out,