1
00:00:00,160 --> 00:00:03,720
Speaker 1: Welcome to Out of Money. I'm Joel, I'm Matt.

2
00:00:03,600 --> 00:00:05,760
Speaker 2: And today we're answering your listener questions.

3
00:00:24,920 --> 00:00:27,400
Speaker 1: Joel, I feel so relaxed and so blessed out because

4
00:00:27,400 --> 00:00:29,000
Speaker 1: I took a little sip of the beer that you

5
00:00:29,040 --> 00:00:30,960
Speaker 1: and I are going to enjoy during this episode, right

6
00:00:31,000 --> 00:00:34,040
Speaker 1: before you start talking about listener questions. Yeah, which is

7
00:00:34,040 --> 00:00:35,000
Speaker 1: what we're getting to today.

8
00:00:35,360 --> 00:00:37,120
Speaker 2: In fact, it's the toughest part of our job, Matt,

9
00:00:37,159 --> 00:00:40,800
Speaker 2: the fact that we were forced by our bosses to

10
00:00:40,880 --> 00:00:42,760
Speaker 2: drink beer while we talking about money.

11
00:00:42,800 --> 00:00:44,360
Speaker 1: Hey, it's not lost on me how lucky we are.

12
00:00:44,440 --> 00:00:47,160
Speaker 1: I was talking to a buddy not too long ago,

13
00:00:47,400 --> 00:00:51,400
Speaker 1: and we were just talking about He was talking about

14
00:00:51,400 --> 00:00:53,120
Speaker 1: something that he had going on with his work, and

15
00:00:53,200 --> 00:00:55,280
Speaker 1: I was I was trying to relate, and I'm just like, man,

16
00:00:55,280 --> 00:00:58,240
Speaker 1: I'm with you, bad boss, terrible coworkers.

17
00:00:58,400 --> 00:00:59,200
Speaker 2: Yeah, man, I get it.

18
00:00:59,240 --> 00:01:00,440
Speaker 1: But then he kind of you like at me with

19
00:01:00,480 --> 00:01:03,400
Speaker 1: incredulous size and was like, dude, don't you drink beer

20
00:01:03,480 --> 00:01:05,280
Speaker 1: during the day on your podcast that you record?

21
00:01:05,360 --> 00:01:07,639
Speaker 2: I was like, yeah, is it your coworker, your best friend.

22
00:01:08,800 --> 00:01:12,320
Speaker 1: We've got perfect We've got a good I shall not complain.

23
00:01:12,480 --> 00:01:15,520
Speaker 1: We are answering listener questions, though we've got a frugaler

24
00:01:15,600 --> 00:01:17,800
Speaker 1: cheap actually that I'm excited to get to. This is

25
00:01:17,840 --> 00:01:22,080
Speaker 1: a buying a used Mattress edition frugler cheap which I'm

26
00:01:22,120 --> 00:01:24,400
Speaker 1: excited to get to. How used. As part of the question,

27
00:01:25,160 --> 00:01:27,560
Speaker 1: that is true, another listeners asking me what to do

28
00:01:28,240 --> 00:01:31,760
Speaker 1: with an inheritance. She's looking for the best options of

29
00:01:31,760 --> 00:01:33,200
Speaker 1: what she should do without money. And we're going to

30
00:01:33,240 --> 00:01:37,559
Speaker 1: talk about ROTH contributions in particular, a listener is no

31
00:01:37,600 --> 00:01:41,360
Speaker 1: longer eligible to contribute to a ROTH, so what should

32
00:01:41,360 --> 00:01:44,960
Speaker 1: he do. We'll get to that plus more during today's episode. Buddy,

33
00:01:45,000 --> 00:01:46,680
Speaker 1: sounds good, you're looking forward to it very much, so

34
00:01:46,840 --> 00:01:49,360
Speaker 1: I thought you might say that looking forward to him

35
00:01:49,600 --> 00:01:52,240
Speaker 1: real quick. I wanted to do a quick little fitness update.

36
00:01:52,520 --> 00:01:55,000
Speaker 1: Listener Brian reached out and was asking. He's like, man,

37
00:01:55,040 --> 00:01:56,600
Speaker 1: I haven't heard you talk about CrossFit.

38
00:01:57,320 --> 00:01:59,520
Speaker 2: How whole are you Matt on.

39
00:01:59,480 --> 00:02:03,120
Speaker 1: The podcast recently? And I'm still doing it, totally still

40
00:02:03,120 --> 00:02:03,360
Speaker 1: doing it.

41
00:02:03,360 --> 00:02:05,760
Speaker 2: Where you're not doing CrossFit, you're doing home gym.

42
00:02:05,600 --> 00:02:08,519
Speaker 1: I'm doing the mat fit, I don't know, whatever you

43
00:02:08,600 --> 00:02:10,800
Speaker 1: want to call it, my version of it in my

44
00:02:10,880 --> 00:02:14,280
Speaker 1: garage and I realized I hadn't really sat down and

45
00:02:14,320 --> 00:02:17,880
Speaker 1: done the math or anything. But I've been at it

46
00:02:17,880 --> 00:02:20,440
Speaker 1: now for ten months at the home gym. Oh and

47
00:02:20,440 --> 00:02:22,920
Speaker 1: get this, the local gym that I've been going to,

48
00:02:23,320 --> 00:02:26,520
Speaker 1: they upped the monthly charge. It's up to two hundred

49
00:02:26,520 --> 00:02:31,160
Speaker 1: bucks up the day. Yeah, okay, really expensive. So I'm

50
00:02:31,200 --> 00:02:33,000
Speaker 1: not totally sure when that took place, but I'm going

51
00:02:33,080 --> 00:02:36,800
Speaker 1: to assume ten months two hundred bucks two thousand dollars.

52
00:02:37,240 --> 00:02:39,720
Speaker 1: I'm not totally sure if I ever admitted to how

53
00:02:39,760 --> 00:02:42,560
Speaker 1: much I spent when I initially built out of the gym,

54
00:02:42,560 --> 00:02:44,919
Speaker 1: but it is around four thousand dollars, okay, which is

55
00:02:44,919 --> 00:02:46,920
Speaker 1: a lot of money. It's like a used car. But

56
00:02:47,120 --> 00:02:49,519
Speaker 1: that being said, dude, I'm halfway. I'm halfway there to

57
00:02:49,600 --> 00:02:51,760
Speaker 1: call on that money back. And that's just me. Kid's

58
00:02:51,800 --> 00:02:53,520
Speaker 1: been out there working out as well. The kids are

59
00:02:53,520 --> 00:02:56,240
Speaker 1: in there playing, trying to do pull ups because they

60
00:02:56,240 --> 00:02:58,639
Speaker 1: know they'll they'll get I told them that if their

61
00:02:58,639 --> 00:03:01,160
Speaker 1: first pull up that I witnessed without them jumping or anything,

62
00:03:01,160 --> 00:03:02,800
Speaker 1: that they get paid five bykes, you know, trying to

63
00:03:02,800 --> 00:03:04,359
Speaker 1: incentivize healthy living.

64
00:03:04,440 --> 00:03:04,560
Speaker 3: Man.

65
00:03:04,680 --> 00:03:07,480
Speaker 2: The other thing is you only equipment, and that equipment

66
00:03:07,520 --> 00:03:10,560
Speaker 2: is valuable. So even though you've probably broken even at

67
00:03:10,560 --> 00:03:12,600
Speaker 2: this point, because if you sold your stuff for half price,

68
00:03:12,760 --> 00:03:15,080
Speaker 2: you could probably get rid of bit immediately think about

69
00:03:15,160 --> 00:03:17,639
Speaker 2: so basically it's an asset right now. I'll say, right

70
00:03:17,680 --> 00:03:19,720
Speaker 2: now you've broken even, so congratulates.

71
00:03:19,680 --> 00:03:21,840
Speaker 1: I appreciate that. Jill. How much have you spent on

72
00:03:24,200 --> 00:03:24,760
Speaker 1: staying healthy?

73
00:03:24,800 --> 00:03:29,359
Speaker 2: It's mostly just running shoes, which honestly, I haven't spent

74
00:03:29,440 --> 00:03:31,399
Speaker 2: that much on. Like my running shoes are pretty cheap.

75
00:03:31,440 --> 00:03:34,160
Speaker 2: People are actually amazed because I think the average runing

76
00:03:34,200 --> 00:03:35,800
Speaker 2: shoes like one hundred fifty bucks now for a decent

77
00:03:35,880 --> 00:03:38,960
Speaker 2: running shoes one thirty one fifty and I spend way

78
00:03:39,040 --> 00:03:41,960
Speaker 2: less than that buying my Adidas when they're on sales.

79
00:03:42,000 --> 00:03:45,360
Speaker 2: So I'm spending some more between like thirty and ninety dollars.

80
00:03:45,360 --> 00:03:46,160
Speaker 1: Prepare nice.

81
00:03:46,440 --> 00:03:47,960
Speaker 2: Here's the other thing I stock up when they're on

82
00:03:48,000 --> 00:03:48,400
Speaker 2: sale too.

83
00:03:48,560 --> 00:03:52,880
Speaker 1: I think that getting what do they say, every three

84
00:03:53,000 --> 00:03:54,200
Speaker 1: to four hundred miles.

85
00:03:53,960 --> 00:03:56,160
Speaker 2: Something like that to replace the shoes is what.

86
00:03:56,040 --> 00:03:58,440
Speaker 1: Some of the with the pros say. I think that's

87
00:03:58,480 --> 00:04:02,400
Speaker 1: totally overblown. I think you can wear shoes well passed

88
00:04:02,400 --> 00:04:05,360
Speaker 1: the quote unquote expiration date because it has so much

89
00:04:05,400 --> 00:04:08,200
Speaker 1: to do with foot strike and how it is that

90
00:04:08,240 --> 00:04:11,080
Speaker 1: you run right and so picture folks in the Nike ads.

91
00:04:11,280 --> 00:04:13,960
Speaker 1: You know runners from the nineties full strike, gazelle stride,

92
00:04:13,960 --> 00:04:17,400
Speaker 1: full stride and not perfect but just huge strides with

93
00:04:17,480 --> 00:04:19,520
Speaker 1: their heel pointed out in what's going to happen is

94
00:04:19,560 --> 00:04:22,359
Speaker 1: they're going to slam into the ground, sending those shock

95
00:04:22,400 --> 00:04:25,120
Speaker 1: waves up the leg as opposed to running with a

96
00:04:25,200 --> 00:04:28,240
Speaker 1: more of a midfoot strike. Yeah, anyway, if you run

97
00:04:28,400 --> 00:04:30,240
Speaker 1: like that, yes, maybe you do need a little more

98
00:04:30,240 --> 00:04:31,960
Speaker 1: cush But if you are running in such a way

99
00:04:32,000 --> 00:04:35,039
Speaker 1: to where your foot falls lightly on the pavement, I

100
00:04:35,040 --> 00:04:39,000
Speaker 1: think the cush you know, the maximum padded running shoes

101
00:04:39,040 --> 00:04:41,880
Speaker 1: might be a little less necessary. For more reading on this,

102
00:04:42,400 --> 00:04:44,680
Speaker 1: read Born to Run, a great book, which is the

103
00:04:44,760 --> 00:04:46,760
Speaker 1: fantastic book. Got me excited about it. He talks a

104
00:04:46,800 --> 00:04:49,520
Speaker 1: lot about it. Last question for you on this topic

105
00:04:50,200 --> 00:04:52,440
Speaker 1: is all of our fitness talk out of the way.

106
00:04:53,040 --> 00:04:55,320
Speaker 2: Well, how from a logistics standpoint, how nice is it

107
00:04:55,560 --> 00:04:56,920
Speaker 2: to walk out your door and exercise?

108
00:04:57,120 --> 00:04:57,560
Speaker 1: It's great?

109
00:04:57,600 --> 00:04:59,680
Speaker 2: So, yeah, you're not paying two hundred bucks a month,

110
00:04:59,720 --> 00:05:03,760
Speaker 2: you have of all your own gear, but also you

111
00:05:03,800 --> 00:05:06,440
Speaker 2: wake up three minutes before you work out. That's pretty

112
00:05:06,520 --> 00:05:07,240
Speaker 2: nice to and that's.

113
00:05:07,120 --> 00:05:08,880
Speaker 1: Literally exactly how I do it, just rolling out of

114
00:05:08,920 --> 00:05:10,760
Speaker 1: the trying to maximize the amount of time I'm able

115
00:05:10,760 --> 00:05:13,240
Speaker 1: to let my body recover. See, that's the other part

116
00:05:13,320 --> 00:05:18,919
Speaker 1: of being healthy is getting enough sleep. It's stupid, but no,

117
00:05:19,000 --> 00:05:21,279
Speaker 1: it is true, like the ability to roll out there.

118
00:05:21,480 --> 00:05:22,919
Speaker 1: I will say we don't have a c in the

119
00:05:22,920 --> 00:05:25,800
Speaker 1: garage though, so as it's been getting warmer, I'm certainly

120
00:05:26,000 --> 00:05:28,120
Speaker 1: sweating a whole lot more. Yeah, I believe it because

121
00:05:28,160 --> 00:05:32,000
Speaker 1: guess what the free gym, the locker room that's included

122
00:05:32,040 --> 00:05:34,719
Speaker 1: with the gym membership, free showers, Yeah, that's not included.

123
00:05:34,760 --> 00:05:36,440
Speaker 1: That's I got to pay for those myself.

124
00:05:37,000 --> 00:05:39,840
Speaker 2: Well, I'm glad you're still doing it. Glad your money's worth.

125
00:05:39,880 --> 00:05:42,000
Speaker 1: I'm glad you've been running it's as well. Dude, what's

126
00:05:42,040 --> 00:05:44,240
Speaker 1: your next race that you're sending up.

127
00:05:44,200 --> 00:05:45,440
Speaker 2: The peach Tree July fourth?

128
00:05:45,440 --> 00:05:47,680
Speaker 1: Hey, yeah, you and me. I don't think I have.

129
00:05:47,680 --> 00:05:49,880
Speaker 2: One before then, so and then half marathon after that

130
00:05:49,880 --> 00:05:51,520
Speaker 2: full marathon on October that's the plan.

131
00:05:51,520 --> 00:05:54,200
Speaker 1: Which I don't Yeah, we'll say that one maybe for

132
00:05:54,200 --> 00:05:56,200
Speaker 1: similar times. I don't know if we've talked about that.

133
00:05:56,320 --> 00:05:57,880
Speaker 2: Yeah, all right, let's mention that be we're having on

134
00:05:57,880 --> 00:06:01,719
Speaker 2: today's episode. This one's called anatomical transmutation. It is, of

135
00:06:01,720 --> 00:06:04,880
Speaker 2: course a beer from an ipa from Burial Brewing Company

136
00:06:04,960 --> 00:06:07,000
Speaker 2: in Ashville, North Carolina. We'll give our thoughts on this

137
00:06:07,000 --> 00:06:09,240
Speaker 2: one at the end of the episode. And if you

138
00:06:09,320 --> 00:06:11,080
Speaker 2: have a money question we'd love to hear from you,

139
00:06:11,160 --> 00:06:13,680
Speaker 2: just go to how toomoney dot com slash ask, or

140
00:06:13,880 --> 00:06:16,520
Speaker 2: instead of doing that, just record your question on the

141
00:06:16,560 --> 00:06:18,760
Speaker 2: voice memo app of your phone, send it to us

142
00:06:18,800 --> 00:06:21,320
Speaker 2: at how toomoneypod at gmail dot com. Hopefully we can

143
00:06:21,360 --> 00:06:24,680
Speaker 2: take it next week on the show, Matt. This question

144
00:06:24,880 --> 00:06:27,479
Speaker 2: comes from a listener who inherited some money. She's trying

145
00:06:27,480 --> 00:06:30,280
Speaker 2: to figure out what's the best way to handle it.

146
00:06:32,279 --> 00:06:38,120
Speaker 4: Hey, Matt and Joel, it's Cheryl from Nebraska. I am

147
00:06:38,200 --> 00:06:40,320
Speaker 4: going to get about one hundred and fifty thousand dollars

148
00:06:40,360 --> 00:06:43,599
Speaker 4: in inheritance. I owe about one hundred and ten on

149
00:06:43,720 --> 00:06:48,200
Speaker 4: my house. I wondered if it would be smarter to

150
00:06:48,240 --> 00:06:53,080
Speaker 4: pay off the house or just pay half on the principle,

151
00:06:53,600 --> 00:06:58,479
Speaker 4: or I don't know what. Give me your thoughts. I

152
00:06:58,600 --> 00:07:00,680
Speaker 4: listened to your show daily, love it.

153
00:07:01,400 --> 00:07:05,080
Speaker 1: Thanks Joel, Cheryl is listening to us daily. I'm assuming

154
00:07:05,120 --> 00:07:07,279
Speaker 1: she's catching up on the episodes. But what if we

155
00:07:07,320 --> 00:07:10,000
Speaker 1: switched it up and started doing a daily podcast, daily

156
00:07:10,040 --> 00:07:10,720
Speaker 1: financial news.

157
00:07:11,360 --> 00:07:12,880
Speaker 2: You wouldn't have to twist my arm. I don't think

158
00:07:13,640 --> 00:07:16,080
Speaker 2: I like talking to you. I like talking about money,

159
00:07:16,120 --> 00:07:18,400
Speaker 2: So doing that more, I wouldn't have to.

160
00:07:18,360 --> 00:07:20,480
Speaker 1: Cut it down to like a fifteen minute show.

161
00:07:20,480 --> 00:07:25,440
Speaker 2: Perhaps, yes, okah, just because the one part of the

162
00:07:25,560 --> 00:07:28,240
Speaker 2: thing that we can't control is how much listeners like

163
00:07:28,400 --> 00:07:30,520
Speaker 2: or dislike us, and if we talk too much into

164
00:07:30,560 --> 00:07:32,360
Speaker 2: their years, they might fall into the ladder camp.

165
00:07:32,480 --> 00:07:34,800
Speaker 1: That is true, Cheryl. I want to kick things off

166
00:07:34,840 --> 00:07:36,520
Speaker 1: and say that I'm sorry to hear that you've lost

167
00:07:36,560 --> 00:07:38,840
Speaker 1: someone close to you, someone who's close enough that they

168
00:07:38,840 --> 00:07:43,520
Speaker 1: would leave you in inheritance. So condolences first off. But

169
00:07:43,680 --> 00:07:45,840
Speaker 1: what it is that you choose to do with this

170
00:07:46,040 --> 00:07:49,480
Speaker 1: lump sum of money, Man, we are not going to

171
00:07:49,480 --> 00:07:50,960
Speaker 1: be able to give a clearcad answer because it is

172
00:07:51,040 --> 00:07:54,320
Speaker 1: so dependent on your personal money goals. It's so dependent

173
00:07:54,440 --> 00:07:57,640
Speaker 1: on some of the specifics that we actually aren't privy to.

174
00:07:58,160 --> 00:08:01,360
Speaker 1: So with that in mind, we'll try to a general framework,

175
00:08:01,760 --> 00:08:04,800
Speaker 1: so hopefully you can make a smart decision with this

176
00:08:05,120 --> 00:08:07,280
Speaker 1: cash and fusion, which I'm sure is what this feels

177
00:08:07,360 --> 00:08:08,400
Speaker 1: like for sure.

178
00:08:08,760 --> 00:08:11,280
Speaker 2: Most people like the biggest cash in fusion most people get,

179
00:08:11,440 --> 00:08:15,920
Speaker 2: Matt is their their tax refund right that they got recently,

180
00:08:16,440 --> 00:08:18,640
Speaker 2: and that feels like a big thing that they can

181
00:08:18,680 --> 00:08:20,600
Speaker 2: do a lot with. But this is obviously much bigger.

182
00:08:20,640 --> 00:08:24,200
Speaker 2: You can address bigger financial concerns that you have, and

183
00:08:24,480 --> 00:08:27,680
Speaker 2: so let's address maybe the mortgage first. For Cheryl here, Cheryl,

184
00:08:27,680 --> 00:08:29,280
Speaker 2: if you sup wish, he's got her eyes set on

185
00:08:29,400 --> 00:08:31,480
Speaker 2: paying off that house. I get that. That's especially when

186
00:08:31,480 --> 00:08:33,240
Speaker 2: you're talking about big some money. You're like, what do

187
00:08:33,360 --> 00:08:35,880
Speaker 2: I owe the most on? And that is a mortgage

188
00:08:35,920 --> 00:08:38,959
Speaker 2: typically for most people, and so it makes sense like, well,

189
00:08:39,120 --> 00:08:42,000
Speaker 2: big lump sum, big mortgage. Let's try to eradicate as

190
00:08:42,080 --> 00:08:44,679
Speaker 2: much of that as possible. And if you just bought

191
00:08:44,720 --> 00:08:47,640
Speaker 2: the house recently, Cheryl, the answer might be yes. Right,

192
00:08:47,720 --> 00:08:50,040
Speaker 2: if you've got like a seven percent mortgage or something

193
00:08:50,080 --> 00:08:52,840
Speaker 2: like that, and you're a debt averse person, then paying

194
00:08:52,880 --> 00:08:54,839
Speaker 2: off the mortgage it can be a fine way. I

195
00:08:54,840 --> 00:08:57,880
Speaker 2: would say to use those inheritance dollars on top of

196
00:08:58,240 --> 00:09:01,439
Speaker 2: paying it off, though you'd still have forty thousand dollars

197
00:09:01,600 --> 00:09:04,040
Speaker 2: left to boost your savings and to invest, So it's

198
00:09:04,080 --> 00:09:07,000
Speaker 2: not like that's the only thing you could accomplish either,

199
00:09:07,360 --> 00:09:10,400
Speaker 2: which I think is great and lens maybe even more

200
00:09:10,600 --> 00:09:14,040
Speaker 2: credence to the goal of paying off your mortgage with

201
00:09:15,080 --> 00:09:18,200
Speaker 2: the majority of this money. But if you bought your

202
00:09:18,320 --> 00:09:20,960
Speaker 2: house a whole bunch of years ago, and let's say

203
00:09:21,000 --> 00:09:22,839
Speaker 2: you're in the last decade of paying it off, and

204
00:09:22,960 --> 00:09:26,560
Speaker 2: you've got a really sweet locked in low interest rate, right,

205
00:09:26,960 --> 00:09:29,360
Speaker 2: you're gonna get a whole lot less bank for your buck.

206
00:09:29,840 --> 00:09:32,959
Speaker 2: So if you've got that three percent or so interestrate,

207
00:09:33,000 --> 00:09:35,200
Speaker 2: you've already paid a lot of interest over the first

208
00:09:35,360 --> 00:09:37,439
Speaker 2: decades of ownership, if you've had that mortgage for a

209
00:09:37,520 --> 00:09:40,480
Speaker 2: long time. While paying it off in one fell swoop

210
00:09:40,520 --> 00:09:43,400
Speaker 2: can feel good, there are meaningfully better ways I think

211
00:09:43,440 --> 00:09:45,319
Speaker 2: to use out one hundred and fifty thousand dollars, because

212
00:09:45,920 --> 00:09:48,319
Speaker 2: really that tail end of the mortgage matt when you

213
00:09:48,400 --> 00:09:51,520
Speaker 2: don't know as much, you're just talking about paying very

214
00:09:51,600 --> 00:09:54,640
Speaker 2: little in interest to the banks every single month because

215
00:09:54,679 --> 00:09:59,439
Speaker 2: of the way a mortgage loan is amortized. So that's

216
00:09:59,440 --> 00:10:01,679
Speaker 2: when people are most likely to start paying off their

217
00:10:01,720 --> 00:10:04,559
Speaker 2: mortgage in droves to start throwing more money at it,

218
00:10:05,000 --> 00:10:07,160
Speaker 2: but it's also the time where it matters to the least.

219
00:10:07,400 --> 00:10:09,520
Speaker 1: That is true. One thing I want to mention too,

220
00:10:09,840 --> 00:10:12,320
Speaker 1: like and you mentioned one hundred and fifty thousand dollars,

221
00:10:12,360 --> 00:10:15,440
Speaker 1: So did Cheryl make sure Cheryl that you are accounting

222
00:10:15,600 --> 00:10:19,079
Speaker 1: for taxes on this inheritance, because yes, there is no

223
00:10:19,320 --> 00:10:24,600
Speaker 1: federal inheritance tax, but Cheryl lives in Nebraska, and Nebraska

224
00:10:24,679 --> 00:10:26,760
Speaker 1: is one of the few states that does actually have

225
00:10:27,080 --> 00:10:30,320
Speaker 1: an inheritance tax, and so we may not be talking

226
00:10:30,320 --> 00:10:32,559
Speaker 1: about the full one fifty So I'm assuming, Cheryl, though,

227
00:10:32,600 --> 00:10:35,160
Speaker 1: that you are keeping that in mind. But Joel, like,

228
00:10:35,320 --> 00:10:37,439
Speaker 1: we're talking about the alternatives and what we can do

229
00:10:37,520 --> 00:10:39,880
Speaker 1: with this money. We've mentioned this before, but when you

230
00:10:40,000 --> 00:10:43,720
Speaker 1: can get that higher guaranteed return in a high yield

231
00:10:43,720 --> 00:10:46,840
Speaker 1: savings account, why would you consider accelerating your debt payoff.

232
00:10:47,200 --> 00:10:49,360
Speaker 1: It's hard to give up a guaranteed return on your

233
00:10:49,400 --> 00:10:52,679
Speaker 1: investment by hanging onto a lower mortgage as opposed to

234
00:10:52,720 --> 00:10:54,920
Speaker 1: paying it off early, because most of the time there's

235
00:10:55,000 --> 00:10:57,600
Speaker 1: risk involved when you were trying to invest money versus

236
00:10:57,679 --> 00:11:01,480
Speaker 1: paying off that debt, and you know you might want

237
00:11:01,520 --> 00:11:04,320
Speaker 1: to invest some of those dollars too. But when there

238
00:11:04,440 --> 00:11:06,800
Speaker 1: is that risk free route to earn more, it's really

239
00:11:06,840 --> 00:11:08,839
Speaker 1: hard to turn down. And that's what a high heel

240
00:11:08,840 --> 00:11:11,079
Speaker 1: savings account is for people with a mortgage in the

241
00:11:11,120 --> 00:11:15,199
Speaker 1: low to mid threes, it's guaranteed plus. And this is

242
00:11:15,200 --> 00:11:17,440
Speaker 1: another note. I think a lot of folks, maybe more

243
00:11:17,480 --> 00:11:20,960
Speaker 1: recently folks have sort of felt the advantages of having

244
00:11:21,040 --> 00:11:24,680
Speaker 1: more cash on hand. But generally speaking, liquidity is incredibly

245
00:11:24,800 --> 00:11:27,760
Speaker 1: underrated in personal finance. Everyone's looking for different ways to

246
00:11:27,840 --> 00:11:30,280
Speaker 1: optimize as opposed to finding ways to be able to

247
00:11:30,600 --> 00:11:33,520
Speaker 1: weather the storm. And when there are fewer and fewer storms,

248
00:11:33,559 --> 00:11:36,640
Speaker 1: maybe you start thinking, ah, maybe all the storms they

249
00:11:36,679 --> 00:11:39,560
Speaker 1: don't exist anymore. It's like, no, you just wait, there'll

250
00:11:39,559 --> 00:11:40,520
Speaker 1: be something that comes along.

251
00:11:40,600 --> 00:11:43,200
Speaker 2: And I think that the cash is trash mantra caught

252
00:11:43,280 --> 00:11:45,079
Speaker 2: on for a whole bunch of years. Yeah, well I'm

253
00:11:45,120 --> 00:11:48,760
Speaker 2: just gonna invest then and no matter what. And so,

254
00:11:49,120 --> 00:11:51,040
Speaker 2: you know, paying off low interest that didn't make sense.

255
00:11:51,240 --> 00:11:54,560
Speaker 2: Putting money in savings didn't make sense because hey, what's

256
00:11:54,600 --> 00:11:57,000
Speaker 2: that cash really doing for me? Well, cash is finally

257
00:11:57,080 --> 00:11:59,319
Speaker 2: doing something for you now, it's certainly not trash. And

258
00:11:59,600 --> 00:12:03,200
Speaker 2: you're right, the liquidity piece, the liquidity that having cash

259
00:12:03,280 --> 00:12:03,800
Speaker 2: on hand.

260
00:12:04,000 --> 00:12:07,080
Speaker 1: Provides those options. Man, there's worth there. There's value as

261
00:12:07,120 --> 00:12:09,319
Speaker 1: opposed to paying off the mortgage early. Like once you

262
00:12:09,360 --> 00:12:11,480
Speaker 1: get rid of that mortgage, especially if it's a lower

263
00:12:11,559 --> 00:12:16,040
Speaker 1: rate mortgage, there's no going back, possibly ever, but maybe

264
00:12:16,280 --> 00:12:19,200
Speaker 1: potentially in your lifetime being able to secure a mortgage

265
00:12:19,200 --> 00:12:22,599
Speaker 1: of that low Whereas if savings rates go down you

266
00:12:22,679 --> 00:12:24,920
Speaker 1: can always sort of change your plan.

267
00:12:24,840 --> 00:12:27,480
Speaker 2: Of attack at that point. Yes, yes, I think that's

268
00:12:27,880 --> 00:12:30,439
Speaker 2: exactly right. Don't do something that you're going to regret.

269
00:12:30,520 --> 00:12:32,920
Speaker 2: And I think maybe that's just another good point here too, Matt,

270
00:12:33,080 --> 00:12:37,000
Speaker 2: that depending on where you're at grief wise, Cheryl, people

271
00:12:37,280 --> 00:12:41,520
Speaker 2: tend to make a decision with inheritance dollars more quickly

272
00:12:41,600 --> 00:12:44,080
Speaker 2: than they should. And give yourself a little bit of time,

273
00:12:44,360 --> 00:12:47,080
Speaker 2: like a little breather, to figure out what is going

274
00:12:47,160 --> 00:12:48,319
Speaker 2: to be the best thing for me. We just don't

275
00:12:48,320 --> 00:12:51,360
Speaker 2: want you to make an emotionally charged decision here with reaction.

276
00:12:51,440 --> 00:12:53,880
Speaker 2: I would be prone to do right if I'm grieving

277
00:12:54,040 --> 00:12:56,560
Speaker 2: and also found a bunch of money that was coming

278
00:12:56,640 --> 00:12:58,439
Speaker 2: my way, it would be tough for me to make

279
00:12:58,520 --> 00:13:00,800
Speaker 2: the smartest decision. I think in the heat of the moment,

280
00:13:01,120 --> 00:13:03,320
Speaker 2: So yeah, feel free to take some time and sit

281
00:13:03,400 --> 00:13:05,480
Speaker 2: on it. And that's what a high savings account could

282
00:13:05,480 --> 00:13:08,280
Speaker 2: do for you as well. There's even a potential, by

283
00:13:08,320 --> 00:13:10,480
Speaker 2: the way, that you're getting an additional tax break for

284
00:13:10,520 --> 00:13:14,240
Speaker 2: paying mortgage interest, although probably not if you take the

285
00:13:14,240 --> 00:13:17,839
Speaker 2: standard deduction when you file taxes, So just keep that

286
00:13:17,920 --> 00:13:20,040
Speaker 2: in mind. From the mortgage perspective, maybe it's helping you

287
00:13:20,040 --> 00:13:22,840
Speaker 2: out in some ways tax wise, but we also want

288
00:13:22,880 --> 00:13:24,520
Speaker 2: you to think big here. What else could you do?

289
00:13:24,920 --> 00:13:25,079
Speaker 5: Well?

290
00:13:25,320 --> 00:13:28,199
Speaker 2: You know, yeah, mortgage payoff, that's you know, not the

291
00:13:28,280 --> 00:13:30,920
Speaker 2: only consideration. You could get rid of other debts if

292
00:13:30,960 --> 00:13:34,000
Speaker 2: you have any, and you probably should because no other

293
00:13:34,040 --> 00:13:35,319
Speaker 2: debt you have in your life is going to be

294
00:13:35,760 --> 00:13:39,599
Speaker 2: as as low or advantageous as your mortgage debt. But

295
00:13:39,679 --> 00:13:42,199
Speaker 2: if you have like a credit card debt or a

296
00:13:42,280 --> 00:13:45,599
Speaker 2: car loan, there's just there's no way that saving that

297
00:13:45,760 --> 00:13:47,719
Speaker 2: money instead of paying those off makes any sense. So

298
00:13:48,320 --> 00:13:50,800
Speaker 2: pay those jokers off and have no debt besides the mortgage.

299
00:13:50,840 --> 00:13:53,240
Speaker 2: That's an ideal place to be. You could even use

300
00:13:53,280 --> 00:13:54,800
Speaker 2: this money that I want to even think bigger than that.

301
00:13:55,440 --> 00:13:57,320
Speaker 2: You could use it to start a business. You've always

302
00:13:57,320 --> 00:13:57,679
Speaker 2: wanted to get.

303
00:13:57,760 --> 00:14:00,160
Speaker 1: Yeah, yeah, those are the big dreams that I was

304
00:14:00,160 --> 00:14:00,599
Speaker 1: thinking about it.

305
00:14:00,760 --> 00:14:03,520
Speaker 2: Yeah yeah, like that paying off that that's still kind

306
00:14:03,520 --> 00:14:06,640
Speaker 2: of basic personal finance stuff. But what else could you do,

307
00:14:06,880 --> 00:14:10,719
Speaker 2: like brainstorm how this money could change your life for

308
00:14:11,280 --> 00:14:14,679
Speaker 2: the for the in the years moving forward. What about

309
00:14:14,880 --> 00:14:16,640
Speaker 2: going back to school to get a degree and paying

310
00:14:16,760 --> 00:14:19,240
Speaker 2: paying for it in cash, especially if that could lead

311
00:14:19,240 --> 00:14:22,280
Speaker 2: to increased earnings for you if that's something you're interested in.

312
00:14:23,360 --> 00:14:26,440
Speaker 2: Those are both two things that this money could do,

313
00:14:26,600 --> 00:14:29,520
Speaker 2: and they would probably honor the person who gave it

314
00:14:29,600 --> 00:14:31,360
Speaker 2: to you right where you're like, listen, I'm using this

315
00:14:31,480 --> 00:14:35,040
Speaker 2: as a catalyst to completely not just change my financial situation,

316
00:14:35,400 --> 00:14:38,000
Speaker 2: but change my life in a really cool way moving forward.

317
00:14:38,240 --> 00:14:41,760
Speaker 2: So I would consider that. And then another maybe basic

318
00:14:41,920 --> 00:14:44,120
Speaker 2: personal finance thing that's still big, is like, hey, how

319
00:14:44,200 --> 00:14:46,960
Speaker 2: can I max out investment accounts for years to come

320
00:14:47,040 --> 00:14:50,040
Speaker 2: with this money. That's another really cool thing you could

321
00:14:50,040 --> 00:14:52,760
Speaker 2: do with it. But I just I guess I want

322
00:14:52,800 --> 00:14:54,960
Speaker 2: to emphasize that the sky could be the limit here,

323
00:14:54,960 --> 00:14:56,800
Speaker 2: because we're talking about a pretty big sum of money.

324
00:14:57,560 --> 00:14:59,880
Speaker 2: It could be life changing, and you could do something

325
00:15:00,080 --> 00:15:02,480
Speaker 2: kind of just like ho hum and boring or you

326
00:15:02,560 --> 00:15:06,440
Speaker 2: could opt to do something that was just a potential

327
00:15:06,480 --> 00:15:10,800
Speaker 2: catalyzer for your career, your life and future income too.

328
00:15:11,040 --> 00:15:13,280
Speaker 1: Oh, I never heard the term catalyzer before. Makes me

329
00:15:13,360 --> 00:15:15,600
Speaker 1: think a fertilizer. Can you use it that way? Like catalysts?

330
00:15:15,640 --> 00:15:18,960
Speaker 1: Just saying I like catalyzer though even better. But Cheryl,

331
00:15:19,000 --> 00:15:23,600
Speaker 1: let's address like the behavioral consumer science, psychology sort of

332
00:15:23,680 --> 00:15:26,200
Speaker 1: side of things. Will this money that you now have

333
00:15:26,360 --> 00:15:28,840
Speaker 1: burn a hole in your pocket if you leave it

334
00:15:28,880 --> 00:15:30,960
Speaker 1: there in your savings account as you are trying to

335
00:15:31,320 --> 00:15:34,560
Speaker 1: find some different, big, awesome ways to spend it or

336
00:15:34,640 --> 00:15:37,720
Speaker 1: invest it. Because if you've got a niche trigger finger

337
00:15:38,040 --> 00:15:42,320
Speaker 1: and you're finding yourself wanting to spend, well, in that case,

338
00:15:42,360 --> 00:15:44,560
Speaker 1: paying off the debt, even mortgage debt, I think that

339
00:15:44,640 --> 00:15:47,360
Speaker 1: that would be a superior choice. What are the alternatives?

340
00:15:47,360 --> 00:15:49,520
Speaker 1: And if the alternatives are going to be to totally

341
00:15:49,600 --> 00:15:51,520
Speaker 1: blow that money, we don't want to see you doing that,

342
00:15:51,920 --> 00:15:54,640
Speaker 1: so at least think through the behavioral side of this decision.

343
00:15:55,360 --> 00:15:58,280
Speaker 1: Because many folks who suddenly inherited money weren't well prepared,

344
00:15:58,560 --> 00:16:00,160
Speaker 1: you know, and that money was frittered away and few

345
00:16:00,200 --> 00:16:02,560
Speaker 1: short years that's the kind of situation we don't want

346
00:16:02,640 --> 00:16:04,680
Speaker 1: to see you emulate all of that.

347
00:16:04,920 --> 00:16:08,840
Speaker 2: It's almost like lottery winners, where I think when it's unexpected,

348
00:16:09,520 --> 00:16:12,520
Speaker 2: it feels like something that you can more easily just

349
00:16:12,640 --> 00:16:12,960
Speaker 2: kind of.

350
00:16:13,360 --> 00:16:16,920
Speaker 1: Blow sure, because easy kind of easy goes exactly.

351
00:16:16,760 --> 00:16:18,680
Speaker 2: Exactly, And we don't want you to find yourself in

352
00:16:18,760 --> 00:16:21,040
Speaker 2: that sort of behavioral position where you're like, well, I

353
00:16:21,120 --> 00:16:23,040
Speaker 2: didn't have to work my butt off to earn this money,

354
00:16:23,280 --> 00:16:25,040
Speaker 2: so let me use it. I can use it in

355
00:16:25,640 --> 00:16:27,560
Speaker 2: kind of a more happy, go lucky sort of way,

356
00:16:27,720 --> 00:16:30,000
Speaker 2: and know this money could really could really change your life.

357
00:16:30,080 --> 00:16:32,320
Speaker 1: Yeah, I was gonna say, on the note of spending it,

358
00:16:32,640 --> 00:16:35,000
Speaker 1: I think it could. It could, and maybe even should

359
00:16:35,080 --> 00:16:37,280
Speaker 1: be worth considering spending a portion of this money on

360
00:16:37,360 --> 00:16:40,120
Speaker 1: yourself in a way that feels a bit wasteful, that

361
00:16:40,320 --> 00:16:43,080
Speaker 1: maybe feels like the craft beer equivalent in your life,

362
00:16:43,120 --> 00:16:44,920
Speaker 1: the thing that you splurge on that you know isn't

363
00:16:44,920 --> 00:16:47,200
Speaker 1: great from a long term perspective. But if it can

364
00:16:47,280 --> 00:16:49,280
Speaker 1: act as like a pressure relief valve in a way,

365
00:16:49,720 --> 00:16:52,480
Speaker 1: and if that allows you to stay on the straight

366
00:16:52,520 --> 00:16:54,400
Speaker 1: and arrow with the remaining dollars that you have, I

367
00:16:54,440 --> 00:16:57,680
Speaker 1: think that could be a good thing. Some funks will say, hey,

368
00:16:57,960 --> 00:17:00,600
Speaker 1: spend five ten percent. But because this is such a

369
00:17:00,680 --> 00:17:03,040
Speaker 1: large amount of money, like that makes me a little

370
00:17:03,080 --> 00:17:05,560
Speaker 1: bit nervous, right Like, if we're talking about let's say

371
00:17:06,600 --> 00:17:10,720
Speaker 1: this is one hundred and fifty after taxes there for Nebraska. Truly,

372
00:17:10,760 --> 00:17:12,680
Speaker 1: that's what she's looking to have on hand, to be

373
00:17:12,720 --> 00:17:15,320
Speaker 1: able to do with fifteen thousand dollars. That is a

374
00:17:15,480 --> 00:17:18,840
Speaker 1: lot of money as opposed to I mean, I don't know.

375
00:17:18,920 --> 00:17:21,640
Speaker 1: I feel like I could see myself being a little

376
00:17:21,640 --> 00:17:24,960
Speaker 1: bit uncomfortable with that sudden sort of timer ticking in

377
00:17:25,000 --> 00:17:27,119
Speaker 1: the back of my head, thinking, well, I'm supposed to

378
00:17:27,160 --> 00:17:29,119
Speaker 1: spend a certain amount of it. I think there are

379
00:17:29,160 --> 00:17:32,119
Speaker 1: ways maybe where you can be just very intentional with

380
00:17:32,400 --> 00:17:34,760
Speaker 1: some of your spending dollars, whether that's spending it on

381
00:17:34,840 --> 00:17:38,359
Speaker 1: other people or just marking a special occasion, just some

382
00:17:38,480 --> 00:17:41,399
Speaker 1: way to, like, I don't know, memorialize even the person

383
00:17:41,640 --> 00:17:44,600
Speaker 1: who you receive this money from. I think could be

384
00:17:44,960 --> 00:17:47,359
Speaker 1: a great way to honor this inheritance that you have

385
00:17:47,560 --> 00:17:49,760
Speaker 1: as well. But I don't know. It just depends on

386
00:17:49,840 --> 00:17:51,560
Speaker 1: who you are, because if you're behind the ball when

387
00:17:51,560 --> 00:17:54,520
Speaker 1: it comes to some of your other savings goals, and

388
00:17:54,640 --> 00:17:56,840
Speaker 1: if you have the desire to do all the smart

389
00:17:56,880 --> 00:17:59,040
Speaker 1: things with this money, by all means, go for it.

390
00:17:59,440 --> 00:18:02,360
Speaker 1: But if you are fully funded from a retirement standpoint,

391
00:18:02,359 --> 00:18:05,200
Speaker 1: you have zero credit card debt, cars are paid off,

392
00:18:05,560 --> 00:18:09,120
Speaker 1: if you have full coverage on your insurance, you have life,

393
00:18:09,200 --> 00:18:11,440
Speaker 1: if you have if you've done all the things, then

394
00:18:11,920 --> 00:18:13,640
Speaker 1: you might be the kind of person that we need

395
00:18:13,760 --> 00:18:15,160
Speaker 1: to encourage to spend the money.

396
00:18:15,240 --> 00:18:17,920
Speaker 2: Yes, allow yourself that freedom, if you're in that kind

397
00:18:17,920 --> 00:18:18,240
Speaker 2: of place.

398
00:18:18,400 --> 00:18:20,439
Speaker 1: Depends on the situation and who you are.

399
00:18:20,640 --> 00:18:24,920
Speaker 2: I'm guessing Nebraska winners aren't warm, Matt, and so maybe, like, hey,

400
00:18:25,119 --> 00:18:27,560
Speaker 2: start planning a January trip to Hawaii if that's like,

401
00:18:27,920 --> 00:18:30,200
Speaker 2: if that's in your if you're interested in that sort

402
00:18:30,200 --> 00:18:30,480
Speaker 2: of thing, I.

403
00:18:30,480 --> 00:18:32,160
Speaker 1: Thought you were gonna say, get you a nice, warm

404
00:18:32,320 --> 00:18:34,439
Speaker 1: job that you.

405
00:18:34,480 --> 00:18:35,160
Speaker 2: Can probably afford.

406
00:18:35,200 --> 00:18:35,360
Speaker 3: Both.

407
00:18:35,480 --> 00:18:37,880
Speaker 2: All right, We've got more to get to on this episode,

408
00:18:38,440 --> 00:18:41,200
Speaker 2: including hey, should I switch from one low cost brokerage

409
00:18:41,240 --> 00:18:44,879
Speaker 2: to another? And what if I lose roth Ira eligibility.

410
00:18:45,000 --> 00:18:47,080
Speaker 2: We'll get to questions on both of those right after

411
00:18:47,160 --> 00:18:56,800
Speaker 2: this we are back from the break.

412
00:18:56,960 --> 00:19:00,119
Speaker 1: Joel, We've got more listener questions to get to now. Well,

413
00:19:00,359 --> 00:19:03,920
Speaker 1: here from a listener and he has a particularly fun

414
00:19:04,080 --> 00:19:05,159
Speaker 1: frugal or cheap for us.

415
00:19:05,800 --> 00:19:08,240
Speaker 3: I'm Matt and Joel. This is Buddy from Downers Grove.

416
00:19:08,800 --> 00:19:12,000
Speaker 3: I have a frugal or cheap question for you. So

417
00:19:12,160 --> 00:19:15,119
Speaker 3: you walk into a mattress store. You're looking for a

418
00:19:15,160 --> 00:19:17,960
Speaker 3: new mattress. You've been there before, you know the sales

419
00:19:18,000 --> 00:19:19,840
Speaker 3: rep that's work with you, and you go on. You say, hey,

420
00:19:19,880 --> 00:19:22,160
Speaker 3: I want the same bed that I bought two years

421
00:19:22,200 --> 00:19:24,600
Speaker 3: ago because I need to swap one bet out at

422
00:19:24,640 --> 00:19:27,719
Speaker 3: my house. And they say, hey, listen, we got one

423
00:19:27,840 --> 00:19:31,000
Speaker 3: end back. It's going to have this fifty percent off

424
00:19:31,760 --> 00:19:34,200
Speaker 3: and you could add on an extended warranty at a

425
00:19:34,240 --> 00:19:38,200
Speaker 3: pre low rate. Is that frugal or cheap to be

426
00:19:38,280 --> 00:19:41,359
Speaker 3: buying a used mattress that was on the show floor

427
00:19:41,680 --> 00:19:44,040
Speaker 3: of a mattress store.

428
00:19:44,280 --> 00:19:46,040
Speaker 1: Thank you so much for the show. We'll be of

429
00:19:46,080 --> 00:19:47,640
Speaker 1: a great day, all right, Matt.

430
00:19:47,680 --> 00:19:51,359
Speaker 2: Normally, when I hear the words used and mattress in

431
00:19:51,400 --> 00:19:53,760
Speaker 2: the same sentence, my earperks up, and I'm like, tell

432
00:19:53,840 --> 00:19:55,000
Speaker 2: me more, cuz.

433
00:19:55,680 --> 00:19:57,080
Speaker 1: I get excited in a good way.

434
00:19:57,840 --> 00:19:59,719
Speaker 2: Well sometimes like is there a horror story coming here?

435
00:20:00,240 --> 00:20:03,240
Speaker 2: Or like because I don't know, I get when I

436
00:20:03,400 --> 00:20:06,760
Speaker 2: was much much younger, I was more inclined to do

437
00:20:06,840 --> 00:20:08,880
Speaker 2: whatever it would take to save a buck. And I'm

438
00:20:09,040 --> 00:20:12,480
Speaker 2: still thinking myself as a pretty frugal dude. But use mattresses.

439
00:20:12,520 --> 00:20:17,000
Speaker 2: I have outgrown that used mattress regrets regrets. You well,

440
00:20:17,160 --> 00:20:19,399
Speaker 2: we I know, I think you guys something similar and

441
00:20:19,480 --> 00:20:20,360
Speaker 2: inherited mattress.

442
00:20:20,560 --> 00:20:23,600
Speaker 1: Yeah, well sort of. Okay, So the problem with Buddy's

443
00:20:23,680 --> 00:20:26,320
Speaker 1: question here is that he's asking a guy who slept

444
00:20:26,359 --> 00:20:29,120
Speaker 1: on a used mattress for over a decade.

445
00:20:29,320 --> 00:20:29,399
Speaker 3: Ye.

446
00:20:29,640 --> 00:20:32,200
Speaker 1: So, and this is a I used mattress, not by somebody.

447
00:20:32,320 --> 00:20:34,359
Speaker 1: It wasn't inherited, it was not from somebody. We knew.

448
00:20:34,720 --> 00:20:37,879
Speaker 1: It was listed on Facebook, and it just so happened

449
00:20:37,920 --> 00:20:40,159
Speaker 1: that it was next door to some folks that we know,

450
00:20:40,359 --> 00:20:41,720
Speaker 1: some friends of ours, and so I was able to

451
00:20:41,800 --> 00:20:46,080
Speaker 1: kind of quasi have them vouch for their neighbors as these.

452
00:20:46,000 --> 00:20:47,120
Speaker 2: Weird, messy, nasty people.

453
00:20:47,400 --> 00:20:49,639
Speaker 1: But I mean they did have cats, and there are

454
00:20:49,800 --> 00:20:51,960
Speaker 1: you know, some cat here that I drove extra fast

455
00:20:52,000 --> 00:20:53,600
Speaker 1: on the way home because the mattress was strapped at

456
00:20:53,600 --> 00:20:55,040
Speaker 1: the top of the car. I'm like, okay, maybe that'll

457
00:20:55,080 --> 00:20:58,720
Speaker 1: get all the oh the cat hair off. Okay, So

458
00:20:58,840 --> 00:21:01,119
Speaker 1: here's the thing. We Like I said, we slept on

459
00:21:01,160 --> 00:21:04,520
Speaker 1: that thing for over a decade, super comfortable mattress. And

460
00:21:05,160 --> 00:21:07,320
Speaker 1: now so we upgraded to a king a couple of

461
00:21:07,359 --> 00:21:09,359
Speaker 1: years ago. And guess who sleeps on that on that

462
00:21:09,440 --> 00:21:12,920
Speaker 1: mattress now one of our kids. So we still have

463
00:21:13,080 --> 00:21:16,240
Speaker 1: that mattress. And everybody in our household knows that that

464
00:21:16,440 --> 00:21:18,880
Speaker 1: is the most comfortable mattress that's in the entire house

465
00:21:19,359 --> 00:21:21,720
Speaker 1: bar nun Like, no questions ask everyone knows it. It's

466
00:21:22,119 --> 00:21:23,439
Speaker 1: it was a smart move for us.

467
00:21:23,520 --> 00:21:26,479
Speaker 2: I think that's a clutch part of the answer here

468
00:21:26,800 --> 00:21:30,960
Speaker 2: is it comfortable? Like yeah, because if you're saying, hey, listen,

469
00:21:31,119 --> 00:21:33,720
Speaker 2: I'm thinking about trying to save money on this thing,

470
00:21:34,359 --> 00:21:38,280
Speaker 2: and you know, the mattresses I at best, but actually

471
00:21:39,200 --> 00:21:41,840
Speaker 2: it's not giving me the best night's sleep, Like there

472
00:21:41,920 --> 00:21:44,480
Speaker 2: is something in sleep supportant man, This is also probably

473
00:21:44,840 --> 00:21:46,840
Speaker 2: middle aged me coming out, but like my sleep matter

474
00:21:46,960 --> 00:21:47,760
Speaker 2: is more than I did.

475
00:21:48,000 --> 00:21:48,240
Speaker 1: Yeah.

476
00:21:48,680 --> 00:21:50,439
Speaker 2: Often you pay attention to your sleep score on your

477
00:21:50,480 --> 00:21:54,000
Speaker 2: watch every day. I look at it and and I

478
00:21:54,040 --> 00:21:55,960
Speaker 2: always let that inform how I slept. I'm like, how

479
00:21:56,000 --> 00:21:57,440
Speaker 2: did I sleep? I don't know, let me check my watch.

480
00:21:57,760 --> 00:22:00,480
Speaker 2: I try to actually like think about how I feel

481
00:22:00,680 --> 00:22:02,680
Speaker 2: a first and see if it matches up with a number,

482
00:22:02,720 --> 00:22:04,280
Speaker 2: because it doesn't always just.

483
00:22:04,320 --> 00:22:06,680
Speaker 1: To not like brainwash yourself by whatever the score happens

484
00:22:06,720 --> 00:22:08,840
Speaker 1: to say yeah on the garment. Yeah, but I get it.

485
00:22:09,440 --> 00:22:11,760
Speaker 2: I guess I just don't want Buddy to make a

486
00:22:11,960 --> 00:22:16,680
Speaker 2: decision here solely for money, because yeah, yeah, you're sleep matters.

487
00:22:16,720 --> 00:22:19,600
Speaker 2: It's going to influence a lot of things, including potentially

488
00:22:19,640 --> 00:22:21,040
Speaker 2: how much money you make, like if you're like showing

489
00:22:21,080 --> 00:22:22,879
Speaker 2: a groggy eye to your job and stuff like that,

490
00:22:23,080 --> 00:22:23,720
Speaker 2: Like it matters.

491
00:22:24,040 --> 00:22:27,160
Speaker 1: Old Buddy got the cheap mattress but not making nearly

492
00:22:27,200 --> 00:22:28,440
Speaker 1: as much a work anymore.

493
00:22:28,640 --> 00:22:31,000
Speaker 2: Yeah, but I think it's like where Buddy's coming from,

494
00:22:31,040 --> 00:22:32,800
Speaker 2: and the way he phrased this question makes me think

495
00:22:32,840 --> 00:22:35,240
Speaker 2: that it is frugal and not cheap because a couple

496
00:22:35,280 --> 00:22:37,200
Speaker 2: of things. It sounds like he's purchased this model before

497
00:22:37,240 --> 00:22:40,760
Speaker 2: he's had good results, so he knows that this particular

498
00:22:41,080 --> 00:22:44,760
Speaker 2: brand of mattress is a good one at least for

499
00:22:45,440 --> 00:22:47,359
Speaker 2: you know, the way he's used it in the past.

500
00:22:47,720 --> 00:22:50,760
Speaker 2: That bodes well. I, too, similar to Buddy, would be

501
00:22:50,800 --> 00:22:53,000
Speaker 2: willing to buy a floor model in order to score

502
00:22:53,040 --> 00:22:55,240
Speaker 2: fifty percent off if I was a fan and I

503
00:22:55,320 --> 00:22:58,640
Speaker 2: needed another mattress. I'd rather buy a nice floor model

504
00:22:58,640 --> 00:23:01,200
Speaker 2: mattress in order to score a higher end bed that

505
00:23:01,280 --> 00:23:04,479
Speaker 2: I otherwise wouldn't be willing to purchase or able to afford,

506
00:23:04,800 --> 00:23:07,359
Speaker 2: than to buy a brand new, much cheaper model. I

507
00:23:07,520 --> 00:23:10,480
Speaker 2: just think that the construction could be much worse on

508
00:23:10,600 --> 00:23:13,000
Speaker 2: the on some of those fly by night you know,

509
00:23:13,520 --> 00:23:15,639
Speaker 2: mattress in a box sort of things. Although some of

510
00:23:15,640 --> 00:23:17,560
Speaker 2: the mattress in the boxes are pretty good, and it

511
00:23:17,680 --> 00:23:20,240
Speaker 2: just depends on I sleep on one now, but I

512
00:23:20,280 --> 00:23:23,040
Speaker 2: think that, you know, the comfort level could be inferior

513
00:23:23,119 --> 00:23:25,159
Speaker 2: on a lower end mattress. And so if you're like, hey,

514
00:23:25,280 --> 00:23:27,680
Speaker 2: I know this, it's nicely, it's it's well made, I'm

515
00:23:27,720 --> 00:23:30,320
Speaker 2: getting a great deal. I know, I like this thing.

516
00:23:30,920 --> 00:23:31,560
Speaker 2: Save the money.

517
00:23:32,000 --> 00:23:34,240
Speaker 1: Sure, I always see the floor model as like a

518
00:23:34,320 --> 00:23:37,480
Speaker 1: benefit because of the fact that it's had some some

519
00:23:37,600 --> 00:23:39,639
Speaker 1: folks kind of you know, bouncing on a little bit,

520
00:23:39,760 --> 00:23:41,800
Speaker 1: kind of like walking around on their knees. So I

521
00:23:41,840 --> 00:23:45,000
Speaker 1: will say that when we purchased our new mattress, I

522
00:23:45,160 --> 00:23:46,920
Speaker 1: was like, man, this thing's kind of stiff, but like

523
00:23:47,280 --> 00:23:49,880
Speaker 1: it takes a minute to actually break in, and anytime

524
00:23:49,920 --> 00:23:51,800
Speaker 1: I've talked to folks who know a thing or two

525
00:23:51,840 --> 00:23:56,080
Speaker 1: about mattresses. They literally will on their knees, like walk

526
00:23:56,119 --> 00:23:59,520
Speaker 1: around on the mattress to kind of like break it in. Yeah, essentially.

527
00:24:00,320 --> 00:24:04,359
Speaker 1: But also I think what Buddy said was that the

528
00:24:04,720 --> 00:24:08,159
Speaker 1: sales rep or the salesperson whoever, they started at fifty percent,

529
00:24:08,520 --> 00:24:10,720
Speaker 1: And so I almost see this as an opportunity, Like

530
00:24:10,800 --> 00:24:14,200
Speaker 1: he came to him already with fifty percent in mind,

531
00:24:14,240 --> 00:24:15,480
Speaker 1: and I think that there is a chance that he

532
00:24:15,520 --> 00:24:17,400
Speaker 1: would even be able to go down a touch more

533
00:24:17,480 --> 00:24:19,920
Speaker 1: sure perhaps, So yeah, why not negotiate. I want to

534
00:24:19,960 --> 00:24:23,080
Speaker 1: see Buddy have a conversation. Hey, this is somebody he knows,

535
00:24:23,160 --> 00:24:25,879
Speaker 1: someone he's familiar with. I think there's an ability for

536
00:24:26,160 --> 00:24:27,879
Speaker 1: them to get rid of a model maybe that nobody

537
00:24:27,920 --> 00:24:30,080
Speaker 1: else wants that's been in the back of the store

538
00:24:30,119 --> 00:24:33,360
Speaker 1: for a minute. While also Buddy give getting an even

539
00:24:33,400 --> 00:24:34,960
Speaker 1: better deal than he thought possible.

540
00:24:35,280 --> 00:24:38,760
Speaker 2: I'd also probably want to know the return policy, Like

541
00:24:38,960 --> 00:24:40,960
Speaker 2: is that is true. Hey, granted, this is a store

542
00:24:41,000 --> 00:24:43,480
Speaker 2: model and I'm getting a sick discount, But if I

543
00:24:43,560 --> 00:24:45,920
Speaker 2: take it home and I realize that it is bent

544
00:24:46,000 --> 00:24:48,520
Speaker 2: out of shape or something like that, and the right

545
00:24:48,560 --> 00:24:50,600
Speaker 2: side of the mattresses is worn in a little more

546
00:24:50,680 --> 00:24:53,000
Speaker 2: than that, I thought that can I bring it back

547
00:24:53,040 --> 00:24:56,760
Speaker 2: within thirty days? And so yeah, I think the return

548
00:24:56,880 --> 00:25:00,399
Speaker 2: policy matters here, and you really only be able to

549
00:25:00,440 --> 00:25:02,600
Speaker 2: figure out what kind of condition it's in after sleeping

550
00:25:02,640 --> 00:25:04,040
Speaker 2: on it for a few nights. So that's that's at

551
00:25:04,119 --> 00:25:07,920
Speaker 2: least one one question I would have. And then you know,

552
00:25:08,000 --> 00:25:09,600
Speaker 2: the one one thing in your question that might be

553
00:25:09,680 --> 00:25:12,440
Speaker 2: a bad idea would be to get an extended warranty though,

554
00:25:12,800 --> 00:25:16,240
Speaker 2: because the risk of a mattress having significant issues is

555
00:25:16,240 --> 00:25:19,200
Speaker 2: pretty low. And it's not that extended warranties can never

556
00:25:19,280 --> 00:25:21,159
Speaker 2: be a smart move, it's just that they rarely are.

557
00:25:21,840 --> 00:25:24,919
Speaker 2: Self insuring is almost always the best bet. It's almost

558
00:25:24,960 --> 00:25:26,640
Speaker 2: always what you're going to hear from us as an answer.

559
00:25:26,760 --> 00:25:30,320
Speaker 2: So if you're getting this barget basement price, what you're

560
00:25:30,359 --> 00:25:33,399
Speaker 2: going to pay for the extended warranty would probably be

561
00:25:34,040 --> 00:25:37,040
Speaker 2: a decent portion of the overall cost that I wouldn't

562
00:25:37,080 --> 00:25:37,720
Speaker 2: want to work over.

563
00:25:37,920 --> 00:25:40,040
Speaker 1: Yeah, that's true. And I like the fact though that

564
00:25:40,160 --> 00:25:42,040
Speaker 1: he is familiar with his particular brand and you already

565
00:25:42,040 --> 00:25:43,840
Speaker 1: you already touched on that too, And I'm actually I'm

566
00:25:43,840 --> 00:25:46,520
Speaker 1: curious because you mentioned that y'all have a more foam

567
00:25:47,040 --> 00:25:50,680
Speaker 1: memory fione based mattress. Personally, I'm not a fan. I'm

568
00:25:50,680 --> 00:25:52,879
Speaker 1: not a fan of those, and I'm I'm actually a

569
00:25:52,920 --> 00:25:55,680
Speaker 1: little curious too if they I mean, I guess those

570
00:25:55,720 --> 00:25:57,320
Speaker 1: companies have been around for a minute. But like, one

571
00:25:57,359 --> 00:25:59,920
Speaker 1: of the things that you see with foam mattresses is

572
00:26:00,119 --> 00:26:03,920
Speaker 1: that over time they collapse, in particular on the edges,

573
00:26:04,720 --> 00:26:06,399
Speaker 1: and so folks will say that, like, oh, it feels

574
00:26:06,400 --> 00:26:07,960
Speaker 1: like I'm going to roll off the edge of my

575
00:26:08,040 --> 00:26:09,920
Speaker 1: bed because of the fact that it doesn't have that

576
00:26:10,000 --> 00:26:14,320
Speaker 1: inherent structure. I don't know, I think I'm a bit suspicious,

577
00:26:14,840 --> 00:26:17,359
Speaker 1: a touch skeptical of like the newer mattresses that have

578
00:26:17,520 --> 00:26:19,680
Speaker 1: some of that poonam built into it as opposed to

579
00:26:20,000 --> 00:26:23,200
Speaker 1: the traditional padded tufted spring mattress.

580
00:26:23,320 --> 00:26:25,680
Speaker 2: Yeah, so, of course, matt The place I got my

581
00:26:26,040 --> 00:26:30,080
Speaker 2: mattress from when I did upgrade was Costco, and I

582
00:26:30,160 --> 00:26:33,040
Speaker 2: wanted to find the best value mattress one that.

583
00:26:33,119 --> 00:26:35,080
Speaker 1: Did you pick it up in the store. Picked it

584
00:26:35,160 --> 00:26:37,040
Speaker 1: up in the store, Okay, so you're able to test

585
00:26:37,080 --> 00:26:39,159
Speaker 1: it out. Though I forget exactly what I paid. I

586
00:26:39,200 --> 00:26:41,000
Speaker 1: want to say it was five or maybe a little

587
00:26:41,000 --> 00:26:43,800
Speaker 1: bit below five hundred bucks for a king size, and

588
00:26:44,600 --> 00:26:47,440
Speaker 1: it's the costco. I just pulled it up here, the

589
00:26:47,520 --> 00:26:52,080
Speaker 1: Nova Form fourteen inch comfort Grand memory film mattress, all right,

590
00:26:52,160 --> 00:26:54,800
Speaker 1: and it gets pretty good reviews and it actually does

591
00:26:54,880 --> 00:26:56,400
Speaker 1: well on a handsome looking mattress.

592
00:26:56,480 --> 00:26:59,199
Speaker 2: Yeah, it does well on Consumer Reports and Wirecutter as well.

593
00:26:59,200 --> 00:27:01,560
Speaker 2: And it's actually thicker than a lot of mattresses too.

594
00:27:02,000 --> 00:27:04,600
Speaker 2: It's like fourteen inches thick, which is pretty darn thick.

595
00:27:04,640 --> 00:27:06,560
Speaker 2: So pay attention to that because some of them are

596
00:27:06,600 --> 00:27:08,720
Speaker 2: like eight inches thick, like they're just to me, that's

597
00:27:08,720 --> 00:27:09,320
Speaker 2: not enough patting.

598
00:27:09,680 --> 00:27:10,920
Speaker 1: But yeah, I like it.

599
00:27:11,160 --> 00:27:14,320
Speaker 2: Emily and I both like that mattress, and so that's

600
00:27:14,480 --> 00:27:16,800
Speaker 2: just like one last thing is look at consumer Reports,

601
00:27:16,840 --> 00:27:19,159
Speaker 2: look at Wirecutter when you're shopping around at mattresses. They

602
00:27:19,200 --> 00:27:22,440
Speaker 2: have good recommendations, and it is interesting. It seems like

603
00:27:22,480 --> 00:27:25,439
Speaker 2: one of those things where the price the sky can

604
00:27:25,520 --> 00:27:27,720
Speaker 2: be the limit on price you can. You can drop

605
00:27:28,280 --> 00:27:30,520
Speaker 2: five grand pretty easy on a mattress if you want to,

606
00:27:31,040 --> 00:27:34,440
Speaker 2: but a lot of the top picks are are low

607
00:27:34,520 --> 00:27:37,639
Speaker 2: four figures, like a thousand bucks or less for a

608
00:27:37,680 --> 00:27:40,200
Speaker 2: really good one. So just don't feel like I'm not

609
00:27:40,240 --> 00:27:42,280
Speaker 2: going if I don't spend a lot of money, I'm

610
00:27:42,320 --> 00:27:44,359
Speaker 2: not going to get something that's great because you really can.

611
00:27:44,680 --> 00:27:45,080
Speaker 1: That's true.

612
00:27:45,160 --> 00:27:45,280
Speaker 4: Man.

613
00:27:45,320 --> 00:27:47,400
Speaker 1: All right, let's hear from another listener. This is someone

614
00:27:47,440 --> 00:27:50,399
Speaker 1: who has a question about one of our absolute favorite

615
00:27:50,440 --> 00:27:51,240
Speaker 1: retirement accounts.

616
00:27:51,880 --> 00:27:55,639
Speaker 5: Hey, Matt and Joel Fellow Marietta in here. At the

617
00:27:55,680 --> 00:27:57,480
Speaker 5: beginning of the year, both my wife and I have

618
00:27:57,560 --> 00:28:00,560
Speaker 5: fully funded a roth IRA. However, over the course of

619
00:28:00,640 --> 00:28:03,480
Speaker 5: the year, we've had significant capital gains from our investments.

620
00:28:04,640 --> 00:28:06,280
Speaker 5: I'm pretty sure this has pushed us out of the

621
00:28:06,320 --> 00:28:08,200
Speaker 5: limit to be able to contribute to the wroth IRA,

622
00:28:09,119 --> 00:28:12,159
Speaker 5: assuming we're no longer eligible. How do you all recommend

623
00:28:12,240 --> 00:28:14,720
Speaker 5: we proceed prior to the end of the year. Thanks guys,

624
00:28:14,920 --> 00:28:16,000
Speaker 5: best friends out.

625
00:28:16,320 --> 00:28:18,960
Speaker 1: Well, Matt Thomas listen our neck of the Woods. He's

626
00:28:19,000 --> 00:28:22,000
Speaker 1: also an honorary bestie, he said. Best friends out.

627
00:28:22,119 --> 00:28:24,080
Speaker 2: Yeah, so you count, you count, We include you, We

628
00:28:24,160 --> 00:28:27,520
Speaker 2: include you. Thank you. And by the way, Matt, we

629
00:28:27,840 --> 00:28:30,840
Speaker 2: think it's typically a smart move to fully fund your

630
00:28:30,920 --> 00:28:32,480
Speaker 2: roth IRA at the beginning of the year. This is

631
00:28:32,520 --> 00:28:34,600
Speaker 2: something you have emphasized a lot because we talk about

632
00:28:34,840 --> 00:28:37,240
Speaker 2: the big fan. We talked about dollar costs, averaging regularly

633
00:28:37,359 --> 00:28:39,960
Speaker 2: on the show, which is essentially putting money in every

634
00:28:40,000 --> 00:28:41,920
Speaker 2: time you get paid, so you get paid every two weeks,

635
00:28:41,960 --> 00:28:44,040
Speaker 2: you're sticking money into that four one K if you've

636
00:28:44,080 --> 00:28:46,160
Speaker 2: got that through your employer. And if you have a

637
00:28:46,280 --> 00:28:50,479
Speaker 2: roth IRA, like you're just letting it auto draft out

638
00:28:50,520 --> 00:28:52,640
Speaker 2: of your account every single month or every couple of

639
00:28:52,720 --> 00:28:54,480
Speaker 2: weeks so you fully fund it by the end of

640
00:28:54,480 --> 00:28:58,720
Speaker 2: the year. But if you have the money to fully

641
00:28:58,800 --> 00:29:01,600
Speaker 2: fund the roth IRA at the beginning of the year,

642
00:29:01,640 --> 00:29:03,960
Speaker 2: which we know not everybody does, but if you do,

643
00:29:04,320 --> 00:29:07,960
Speaker 2: stick it in because one, it just kind of gets

644
00:29:08,000 --> 00:29:10,560
Speaker 2: it out of the way, like you've done the thing well,

645
00:29:10,840 --> 00:29:12,640
Speaker 2: and then you're actually going to be better off the

646
00:29:12,720 --> 00:29:16,040
Speaker 2: majority of the time too as an investor, because that's

647
00:29:16,080 --> 00:29:18,640
Speaker 2: what the data shows, right, what three out of four

648
00:29:18,720 --> 00:29:21,080
Speaker 2: years the market goes up something like that exactly, So

649
00:29:21,120 --> 00:29:23,800
Speaker 2: you're more likely to have a larger sum, larger balance

650
00:29:23,920 --> 00:29:27,040
Speaker 2: at the end of an investing lifetime, or you to

651
00:29:27,120 --> 00:29:29,000
Speaker 2: have invested at the beginning of every single year as

652
00:29:29,040 --> 00:29:32,200
Speaker 2: opposed to the end of very I know most folks

653
00:29:32,480 --> 00:29:34,320
Speaker 2: off for dollar cost averaging because they just don't have

654
00:29:34,360 --> 00:29:36,920
Speaker 2: seven thousand dollars in January first to toss it in.

655
00:29:37,000 --> 00:29:39,160
Speaker 1: But it's a good goal to work towards, though. I

656
00:29:39,240 --> 00:29:41,240
Speaker 1: think that if that's something that over the course of

657
00:29:41,280 --> 00:29:43,280
Speaker 1: a few years, if that's something that you can work towards,

658
00:29:43,360 --> 00:29:46,520
Speaker 1: where you've got enough set aside that you can every year,

659
00:29:46,600 --> 00:29:48,160
Speaker 1: maybe you dump a little bit more at the very

660
00:29:48,200 --> 00:29:50,560
Speaker 1: beginning of the year. And in a similar way, I

661
00:29:50,640 --> 00:29:56,080
Speaker 1: think it does a similar behavioral trick where I think

662
00:29:56,080 --> 00:29:57,800
Speaker 1: what's great about dollar cost averaging is that it just

663
00:29:57,840 --> 00:30:00,440
Speaker 1: takes the guesswork out of when it is that you

664
00:30:00,520 --> 00:30:03,160
Speaker 1: want to buy into the market. You're essentially doing the

665
00:30:03,200 --> 00:30:05,760
Speaker 1: same thing though when you do the a lumpsum investment

666
00:30:05,840 --> 00:30:07,560
Speaker 1: at the beginning of every single year, you're just like, well,

667
00:30:07,560 --> 00:30:10,000
Speaker 1: that's just what I do come January first, every single year.

668
00:30:10,000 --> 00:30:12,520
Speaker 1: It's not something where we're having a conversation about a

669
00:30:12,560 --> 00:30:14,760
Speaker 1: baby like this is just we are investors, this is

670
00:30:14,840 --> 00:30:16,760
Speaker 1: what we do. We're gonna be better for it.

671
00:30:16,920 --> 00:30:19,520
Speaker 2: And it's basically dollar cost averaging on just a far

672
00:30:19,600 --> 00:30:21,840
Speaker 2: less frequent timeline. Because you're like, you're still doing the

673
00:30:21,880 --> 00:30:24,160
Speaker 2: same thing, Like you're not like, well, maybe I'll wait

674
00:30:24,240 --> 00:30:26,400
Speaker 2: till like July and see if the market's up then

675
00:30:26,480 --> 00:30:28,240
Speaker 2: or something like that. You're still doing it like clockwork

676
00:30:28,280 --> 00:30:30,640
Speaker 2: on the same you know, the same season, same date,

677
00:30:30,680 --> 00:30:31,360
Speaker 2: hopefully every year.

678
00:30:31,480 --> 00:30:33,760
Speaker 1: Yeah, and you're also not saying like, Okay, I'm only

679
00:30:33,800 --> 00:30:37,880
Speaker 1: gonna invest in even years or something, or you know,

680
00:30:37,960 --> 00:30:39,760
Speaker 1: I'm just gonna wait and slom forty and I think

681
00:30:39,800 --> 00:30:42,080
Speaker 1: it's gonna be better then, Like you're not timing the

682
00:30:42,120 --> 00:30:44,120
Speaker 1: market at all in that way, of course, But there

683
00:30:44,360 --> 00:30:47,680
Speaker 1: is that occasional situation that Thomas has found himself in

684
00:30:48,200 --> 00:30:50,480
Speaker 1: where you end up regretting it, and not because the

685
00:30:50,560 --> 00:30:54,040
Speaker 1: market goes down, but because you find yourself ineligible to

686
00:30:54,400 --> 00:30:57,960
Speaker 1: contribute to that wrath. It's a good thing on one hand,

687
00:30:58,080 --> 00:30:59,840
Speaker 1: right because it means that you've made too much money,

688
00:31:00,200 --> 00:31:03,720
Speaker 1: and that is worth celebrating. In Thomas's case, it's great

689
00:31:03,760 --> 00:31:06,880
Speaker 1: to have maybe capital gains that he was not expecting.

690
00:31:07,200 --> 00:31:11,120
Speaker 2: Some people like when they talk about capital gains, they

691
00:31:11,160 --> 00:31:13,560
Speaker 2: make it sound like it's like the worst thing ever, Like, dude,

692
00:31:13,560 --> 00:31:14,520
Speaker 2: I got these seconds.

693
00:31:14,480 --> 00:31:15,600
Speaker 1: And I get it emotionally.

694
00:31:15,760 --> 00:31:18,320
Speaker 2: My tax bill the big picture, well, that means you

695
00:31:18,400 --> 00:31:18,760
Speaker 2: made money.

696
00:31:18,800 --> 00:31:21,160
Speaker 1: Let's zoom out a little bit. You're doing well. We

697
00:31:21,280 --> 00:31:23,800
Speaker 1: are happy for you. But the current income limits are

698
00:31:23,880 --> 00:31:26,600
Speaker 1: one hundred and fifty thousand dollars for single folks to

699
00:31:26,680 --> 00:31:28,640
Speaker 1: be able to contribute to a roth, and it is

700
00:31:28,800 --> 00:31:30,920
Speaker 1: two hundred and thirty six thousand dollars if you are

701
00:31:31,120 --> 00:31:34,959
Speaker 1: married filing jointly, say Thomas or and others out there.

702
00:31:35,320 --> 00:31:37,440
Speaker 1: If you're going to be close to that line, it

703
00:31:37,640 --> 00:31:41,480
Speaker 1: might be worth prioritizing some other tax advantage moves, like

704
00:31:41,560 --> 00:31:44,840
Speaker 1: contributing more to a traditional four to one K or

705
00:31:44,920 --> 00:31:48,640
Speaker 1: maybe even batching your giving so that you still meet

706
00:31:48,760 --> 00:31:52,720
Speaker 1: the adjusted gross income requirements. Maybe typically you take the

707
00:31:52,760 --> 00:31:54,720
Speaker 1: standard deduction, but you're like, you know what, let's hold

708
00:31:54,760 --> 00:31:57,760
Speaker 1: off on giving. We'll give all of our money at

709
00:31:57,800 --> 00:32:00,760
Speaker 1: the beginning of next year, and then it's actually pre

710
00:32:00,880 --> 00:32:03,600
Speaker 1: fund your giving at the end of that next year

711
00:32:03,680 --> 00:32:05,920
Speaker 1: for the following year. That way, you're getting credit for

712
00:32:06,240 --> 00:32:08,880
Speaker 1: all of that charitable giving on one year. It allows

713
00:32:08,880 --> 00:32:10,800
Speaker 1: you to itemize and take more of a deduction.

714
00:32:10,840 --> 00:32:12,040
Speaker 2: Makes sense for a lot of people where it's like

715
00:32:12,080 --> 00:32:14,360
Speaker 2: standard deduction one year, don't take the standard the next

716
00:32:14,480 --> 00:32:18,880
Speaker 2: because you've just batched some of those like tax oriented

717
00:32:19,520 --> 00:32:22,640
Speaker 2: tax saving choices into one given year and then you

718
00:32:22,760 --> 00:32:25,560
Speaker 2: back off the next year. And that can make you know,

719
00:32:25,880 --> 00:32:27,840
Speaker 2: a small dent in your ability to save on taxes,

720
00:32:27,880 --> 00:32:30,240
Speaker 2: but also in your ability to then contribute to a roth.

721
00:32:30,440 --> 00:32:33,920
Speaker 1: Yeah, exactly, and ross truly are one of our favorite accounts,

722
00:32:34,040 --> 00:32:36,680
Speaker 1: in large part because of the flexibility and the options

723
00:32:36,720 --> 00:32:39,960
Speaker 1: that the GIF folks. That being said, man the ability

724
00:32:40,080 --> 00:32:41,920
Speaker 1: to contribute a little more to a traditional four one

725
00:32:41,960 --> 00:32:44,200
Speaker 1: K for instance, even if there isn't a match. Well, okay,

726
00:32:44,280 --> 00:32:46,560
Speaker 1: you are still investing, but then you are also bringing

727
00:32:46,600 --> 00:32:48,920
Speaker 1: down your adjusted gross income, which then in fact allows

728
00:32:48,960 --> 00:32:51,720
Speaker 1: you to be able to sock maybe fewer dollars towards

729
00:32:51,720 --> 00:32:54,640
Speaker 1: your WROTH, but at least you're eligible. Yes, right out

730
00:32:54,640 --> 00:32:57,000
Speaker 1: of the gate as well, agreed. So so okay, what

731
00:32:57,080 --> 00:32:57,560
Speaker 1: do you do though?

732
00:32:57,560 --> 00:32:59,440
Speaker 2: If you've contributed to a wroth and you find out

733
00:32:59,480 --> 00:33:02,480
Speaker 2: that you're income was over and above the limit for

734
00:33:02,560 --> 00:33:05,400
Speaker 2: twenty twenty five, Well, there are a few moves you

735
00:33:05,480 --> 00:33:07,840
Speaker 2: can make. You're not going to face any penalties if

736
00:33:07,920 --> 00:33:11,960
Speaker 2: you actually just choose to withdraw your excess contribution plus

737
00:33:12,080 --> 00:33:14,920
Speaker 2: any income that it's earned by the due date for

738
00:33:15,000 --> 00:33:18,160
Speaker 2: your tax return. So you will have to include the

739
00:33:18,320 --> 00:33:21,560
Speaker 2: taxable earnings portion in your taxable income. So, like, let's

740
00:33:21,560 --> 00:33:23,760
Speaker 2: say the money you stuck into the ROTH. Well, it

741
00:33:23,880 --> 00:33:26,600
Speaker 2: made money because it was invested in the market. Well

742
00:33:26,640 --> 00:33:29,400
Speaker 2: that you will have to include in sort of your

743
00:33:30,400 --> 00:33:32,880
Speaker 2: figure out what the IRS form number is, Matt, But

744
00:33:33,000 --> 00:33:34,640
Speaker 2: there's a form you have to fill out to report

745
00:33:34,720 --> 00:33:37,280
Speaker 2: that on your taxes. But because of the way roth

746
00:33:37,320 --> 00:33:40,880
Speaker 2: irays are taxed, you can take your contribution out at

747
00:33:40,880 --> 00:33:43,000
Speaker 2: any time, Like you don't need to wait until you're

748
00:33:43,320 --> 00:33:45,480
Speaker 2: fifty nine and a half because you're paying the tax

749
00:33:45,880 --> 00:33:48,680
Speaker 2: up front. So because of that, you can just literally

750
00:33:48,800 --> 00:33:51,720
Speaker 2: plow back that contribution, no harm, no foul. Another option

751
00:33:52,120 --> 00:33:55,880
Speaker 2: is to recharacterize that contribution and move it into a

752
00:33:56,400 --> 00:33:59,400
Speaker 2: traditional IRA. And I do believe this is something that

753
00:33:59,480 --> 00:34:01,680
Speaker 2: you've done, right, I have, But that's.

754
00:34:01,560 --> 00:34:05,440
Speaker 1: Also before the larger brokerages out there, so like Fidelity

755
00:34:05,480 --> 00:34:10,000
Speaker 1: and Vanguard, before they were offering this like a withdrawal

756
00:34:10,239 --> 00:34:13,200
Speaker 1: of excess contributions. That's what they're calling it now. And

757
00:34:13,280 --> 00:34:16,520
Speaker 1: so the recharacterization, I mean even just the term right,

758
00:34:16,640 --> 00:34:18,040
Speaker 1: it sounds like it was something that was invented by

759
00:34:18,040 --> 00:34:20,520
Speaker 1: a bunch of accountants or the IRS, where it's like, oh,

760
00:34:20,560 --> 00:34:24,279
Speaker 1: you need to recharacterize your contributions for sure. And there

761
00:34:24,320 --> 00:34:26,320
Speaker 1: are times when you're gonna want to do that. But

762
00:34:26,840 --> 00:34:28,799
Speaker 1: I truly think that this is a new thing, because

763
00:34:29,040 --> 00:34:30,879
Speaker 1: this was not available when I did this a number

764
00:34:30,920 --> 00:34:35,280
Speaker 1: of years ago when we had to recharacterize contributions. But truly,

765
00:34:36,160 --> 00:34:38,680
Speaker 1: the ability to go on to a brokerage like Fidelity

766
00:34:39,160 --> 00:34:44,360
Speaker 1: or Vanguard and initiate and excess contributions withdrawal, like I

767
00:34:44,480 --> 00:34:46,680
Speaker 1: love it. It makes so much sense, and it's oriented

768
00:34:46,719 --> 00:34:50,800
Speaker 1: towards everyday retail investors as opposed to feeling like you

769
00:34:50,880 --> 00:34:53,000
Speaker 1: have to hire an accountant to make sure that you're

770
00:34:53,040 --> 00:34:55,759
Speaker 1: handling this thing correctly. And so I know that there

771
00:34:55,760 --> 00:34:59,040
Speaker 1: are certain situations where someone is going to want to recharacterize.

772
00:34:59,280 --> 00:35:03,239
Speaker 1: It's pretty easy. Well, there are forms. When I initiated

773
00:35:03,320 --> 00:35:06,360
Speaker 1: that for us with Vanguard, it was just an online

774
00:35:06,400 --> 00:35:09,840
Speaker 1: form that you filled out. In particular, is easy because

775
00:35:10,160 --> 00:35:14,759
Speaker 1: I was recharacterizing those contributions, those dollars from a roth

776
00:35:14,880 --> 00:35:17,840
Speaker 1: IRA's that was held there at Vanguard to a traditional

777
00:35:17,960 --> 00:35:21,120
Speaker 1: ira that was also held there at Vanguard. It's a

778
00:35:21,160 --> 00:35:23,680
Speaker 1: little more complicated if you are sending that to a

779
00:35:23,760 --> 00:35:26,800
Speaker 1: different brokerage. There's a little more handholding that needs to

780
00:35:26,840 --> 00:35:29,960
Speaker 1: take place. But especially if you're doing an in house

781
00:35:30,400 --> 00:35:34,840
Speaker 1: recharacterization like that, it's pretty simple. But again, this withdrawal

782
00:35:34,920 --> 00:35:38,480
Speaker 1: of excess contributions option makes this even easier.

783
00:35:38,600 --> 00:35:42,160
Speaker 2: Yeah, so well we should also mention that in the future,

784
00:35:42,280 --> 00:35:46,320
Speaker 2: for Thomas, like if you remain above this income threshold,

785
00:35:46,360 --> 00:35:49,720
Speaker 2: which you might not because it sounds like the capital gains,

786
00:35:50,800 --> 00:35:53,920
Speaker 2: it might make this a twenty twenty five specific problem.

787
00:35:54,440 --> 00:35:58,480
Speaker 2: And maybe your income's not always like crushing above that

788
00:35:58,719 --> 00:36:01,759
Speaker 2: above that level, and if so, you can potentially apply

789
00:36:01,840 --> 00:36:04,200
Speaker 2: these wroth contributions to future years as well. That's just

790
00:36:04,239 --> 00:36:06,480
Speaker 2: another option. And it's really important to do this in

791
00:36:06,520 --> 00:36:08,840
Speaker 2: a timely manner, Matt, because, as you know, part of

792
00:36:08,880 --> 00:36:10,440
Speaker 2: the reason that you had a fire under your but

793
00:36:10,640 --> 00:36:13,520
Speaker 2: to do the recharacterization when you did is because if

794
00:36:13,560 --> 00:36:16,080
Speaker 2: you don't, the IRS charges you a six percent fee,

795
00:36:16,600 --> 00:36:18,839
Speaker 2: not once, but each and every year that the money

796
00:36:18,920 --> 00:36:22,120
Speaker 2: stays planted in your wrath, which which can add up.

797
00:36:22,000 --> 00:36:24,839
Speaker 1: So six percent on the excess that you made.

798
00:36:25,000 --> 00:36:28,000
Speaker 2: So yeah, so if you oopsie that for a few years,

799
00:36:28,200 --> 00:36:30,080
Speaker 2: like the what you owe the IRS could add up

800
00:36:30,080 --> 00:36:31,920
Speaker 2: and don't want to do that and then and then

801
00:36:31,920 --> 00:36:34,360
Speaker 2: also just for future years, it's worth mentioning that a

802
00:36:34,400 --> 00:36:36,360
Speaker 2: backdoor WROTH could be a good option for Thomas or

803
00:36:36,440 --> 00:36:39,560
Speaker 2: for other listeners who find themselves in this place where, hey,

804
00:36:39,640 --> 00:36:43,520
Speaker 2: I'm earning lots of money. Now the WROTH feels unavailable

805
00:36:43,560 --> 00:36:45,600
Speaker 2: to me. Can I still access to rothy as you can?

806
00:36:45,800 --> 00:36:48,080
Speaker 2: We have an article on how to money dot com

807
00:36:48,160 --> 00:36:49,279
Speaker 2: that explains just how to do that.

808
00:36:49,840 --> 00:36:50,560
Speaker 1: Do you want to do that?

809
00:36:50,640 --> 00:36:53,239
Speaker 2: That's another question. But if you do, that's a way

810
00:36:53,280 --> 00:36:54,600
Speaker 2: to get more money into your wroth.

811
00:36:54,680 --> 00:36:58,360
Speaker 1: That's true. Speaking of brokerages, we've got more to get to,

812
00:36:58,560 --> 00:37:02,719
Speaker 1: more personal finance goodness, including Schwab. We don't want to

813
00:37:02,800 --> 00:37:04,840
Speaker 1: leave those guys out. We'll get to a question regarding

814
00:37:04,960 --> 00:37:06,919
Speaker 1: them plus more right after the break.

815
00:37:14,600 --> 00:37:16,440
Speaker 2: All right, we're back. Got a couple more money questions

816
00:37:16,480 --> 00:37:18,799
Speaker 2: to get to today on the show. It's time now

817
00:37:18,880 --> 00:37:20,640
Speaker 2: for the Facebook question of the week. This one comes

818
00:37:20,680 --> 00:37:24,160
Speaker 2: from Becca. She says, got a car warranty question here.

819
00:37:24,600 --> 00:37:28,560
Speaker 2: We just bought a VW Volkswagen ID four with thirteen

820
00:37:28,600 --> 00:37:31,560
Speaker 2: thousand miles. It's an electric vehicle. They pushed a warranty

821
00:37:31,680 --> 00:37:34,000
Speaker 2: on us that we have thirty days to back out on.

822
00:37:34,760 --> 00:37:37,439
Speaker 2: It's sixty one hundred dollars and it includes most drive

823
00:37:37,640 --> 00:37:41,480
Speaker 2: train issues. Tire alignments and rotation, as well as scheduled maintenance.

824
00:37:42,000 --> 00:37:44,160
Speaker 2: The car comes with a no cost one hundred thousand

825
00:37:44,200 --> 00:37:47,320
Speaker 2: mile battery warranty. I did not want to spend that

826
00:37:47,520 --> 00:37:49,680
Speaker 2: much on a warrantine. Was wondering about trying to find

827
00:37:49,760 --> 00:37:52,560
Speaker 2: a different warranty or just kind of saving that money

828
00:37:52,560 --> 00:37:53,080
Speaker 2: as a buffer.

829
00:37:53,680 --> 00:37:56,640
Speaker 1: The old car warranty is what Becca's dealing with here, Joel,

830
00:37:57,040 --> 00:38:00,279
Speaker 1: And she said that they pushed it on me. You

831
00:38:00,360 --> 00:38:03,439
Speaker 1: are not alone because warranties are such a big money

832
00:38:03,520 --> 00:38:06,319
Speaker 1: maker for car dealerships. It's no wonder that they made

833
00:38:06,360 --> 00:38:09,359
Speaker 1: the heart cell on you. Many people have been pushed over,

834
00:38:09,520 --> 00:38:11,880
Speaker 1: bowled over by those salespeople. And you know why I

835
00:38:11,960 --> 00:38:15,239
Speaker 1: think that a lot of folks accept it is because

836
00:38:15,239 --> 00:38:17,160
Speaker 1: of the fact that oftentimes we finance our cars. And

837
00:38:17,200 --> 00:38:19,120
Speaker 1: so when you take if you if you you know,

838
00:38:19,160 --> 00:38:20,879
Speaker 1: if someone's just like, hey, pay up six thousand dollars

839
00:38:20,920 --> 00:38:23,880
Speaker 1: for this thing, you're thinking, I got sorry, I'm not

840
00:38:23,960 --> 00:38:25,680
Speaker 1: going to be able to afford that a b I

841
00:38:25,719 --> 00:38:27,120
Speaker 1: don't know if it's worth it. But when you roll

842
00:38:27,160 --> 00:38:29,560
Speaker 1: it into a payments like that, it makes it a

843
00:38:29,920 --> 00:38:32,000
Speaker 1: much more pleasant pill to swallow.

844
00:38:32,440 --> 00:38:34,040
Speaker 2: At that point, like it'll be an extra forty two

845
00:38:34,040 --> 00:38:35,799
Speaker 2: dollars a month, but it's also going to be peace

846
00:38:35,840 --> 00:38:37,200
Speaker 2: of mind, don't you will exactly.

847
00:38:36,920 --> 00:38:38,120
Speaker 1: And don't you know the peace of mind that that's

848
00:38:38,160 --> 00:38:38,560
Speaker 1: going to give you.

849
00:38:38,680 --> 00:38:41,200
Speaker 2: He's going to protect you and your car against anything

850
00:38:41,239 --> 00:38:42,040
Speaker 2: that could come its way.

851
00:38:42,200 --> 00:38:46,480
Speaker 1: Yeah. Typically we are not fans of extended warranties, especially

852
00:38:46,680 --> 00:38:51,080
Speaker 1: like on technology on electronics, like tech gadgets. Instead, take

853
00:38:51,120 --> 00:38:52,960
Speaker 1: care of your stuff self ensure and you're gonna come

854
00:38:52,960 --> 00:38:56,359
Speaker 1: out ahead. Like the vast majority of the time, if

855
00:38:56,440 --> 00:38:58,399
Speaker 1: you bought one of those every single time you made

856
00:38:58,400 --> 00:39:01,400
Speaker 1: a purchase, like even of online appliances, you're gonna be

857
00:39:01,440 --> 00:39:05,719
Speaker 1: spending all of your money all on electronics. But car

858
00:39:05,800 --> 00:39:09,160
Speaker 1: warranties are a little bit different, but still they can

859
00:39:09,280 --> 00:39:11,800
Speaker 1: provide that piece of mind, but they are rarely worth

860
00:39:12,239 --> 00:39:13,480
Speaker 1: the money that they actually cost you.

861
00:39:13,600 --> 00:39:15,640
Speaker 2: And it sounds like the basic warranty that comes with

862
00:39:15,760 --> 00:39:17,399
Speaker 2: the car provides a heck of a lot of peace

863
00:39:17,440 --> 00:39:19,680
Speaker 2: of mind in and of itself, because that what is

864
00:39:19,760 --> 00:39:24,279
Speaker 2: the number one potential problem with an electric vehicle. It's

865
00:39:24,320 --> 00:39:26,719
Speaker 2: that the battery craps out ahead of time, and when

866
00:39:26,760 --> 00:39:29,120
Speaker 2: you have she's at thirteen thousand miles. When you have

867
00:39:29,320 --> 00:39:32,439
Speaker 2: eighty seven thousand miles in front of you that where

868
00:39:32,480 --> 00:39:35,480
Speaker 2: the battery is covered, that's a long time and that

869
00:39:35,640 --> 00:39:37,359
Speaker 2: in and of itself should provide a lot of peace

870
00:39:37,400 --> 00:39:40,919
Speaker 2: of mind. Sixty one hundred bucks is so much money,

871
00:39:41,920 --> 00:39:44,600
Speaker 2: and if you already have kind of that warranty that

872
00:39:44,719 --> 00:39:47,960
Speaker 2: gives you that much coverage, I mean that could be many, many,

873
00:39:48,040 --> 00:39:50,879
Speaker 2: many years of coverage on that battery. To me, that's

874
00:39:50,960 --> 00:39:53,120
Speaker 2: the biggest thing. I would feel taken care of by that.

875
00:39:53,920 --> 00:39:57,680
Speaker 2: And it sounds like, yeah, you're extended warranty includes some extras,

876
00:39:58,160 --> 00:40:00,279
Speaker 2: but I would also say this scheduled mate and it's

877
00:40:00,360 --> 00:40:05,000
Speaker 2: on an electric vehicle, is minimal, and so I think

878
00:40:05,080 --> 00:40:08,320
Speaker 2: the initial manufacturers warranty should be ample. It should assuaged

879
00:40:08,320 --> 00:40:11,880
Speaker 2: your concerns, and you just really don't need to add

880
00:40:12,200 --> 00:40:15,879
Speaker 2: this extended service contract. Also think about what fine print

881
00:40:15,920 --> 00:40:18,240
Speaker 2: and exclusions it might come with, Like you'd be wise

882
00:40:18,320 --> 00:40:22,319
Speaker 2: to know what's covered first. There is a small chance

883
00:40:22,360 --> 00:40:24,120
Speaker 2: that you come out ahead by buying this thing, but

884
00:40:24,239 --> 00:40:26,080
Speaker 2: the gamble just doesn't pay off for most folks. And

885
00:40:26,160 --> 00:40:29,480
Speaker 2: so if you opt also one last thing on this

886
00:40:29,560 --> 00:40:32,239
Speaker 2: extended warranty that I want to mention is if you

887
00:40:32,360 --> 00:40:34,320
Speaker 2: do opt to go for it, make sure it is

888
00:40:35,040 --> 00:40:39,479
Speaker 2: from Volkswagen directly, because third party warranties are the worst

889
00:40:39,520 --> 00:40:42,120
Speaker 2: possible kind. The company might not be there when you

890
00:40:42,200 --> 00:40:45,960
Speaker 2: need it. There's typically more fine print. They're just a

891
00:40:46,040 --> 00:40:48,360
Speaker 2: lot of third party warranties that aren't direct from the

892
00:40:48,400 --> 00:40:52,800
Speaker 2: manufacturer that I think are worth a pittance to almost nothing,

893
00:40:53,200 --> 00:40:56,040
Speaker 2: and so I would be completely unwilling to.

894
00:40:56,120 --> 00:40:58,719
Speaker 1: Pay for that, that's for sure. Do you say warranty

895
00:40:59,200 --> 00:41:02,520
Speaker 1: or warranty because I swore I was hearing you say

896
00:41:02,719 --> 00:41:05,839
Speaker 1: both interchange warranty like guarantee when I'm like, I don't

897
00:41:05,840 --> 00:41:09,399
Speaker 1: think I've ever said warranty like warranty. I always say

898
00:41:09,440 --> 00:41:12,799
Speaker 1: warranty like thirty year warranty. Yeah, drive trade warranty. Yes,

899
00:41:12,880 --> 00:41:16,080
Speaker 1: we say it differently, But towards the end of say Tomato,

900
00:41:16,120 --> 00:41:17,279
Speaker 1: I say to me, that sounds like it was. I

901
00:41:17,320 --> 00:41:20,879
Speaker 1: don't know. Aside from self insuring, I think a better

902
00:41:20,960 --> 00:41:22,680
Speaker 1: thing to do is just simply buy a vehicle that

903
00:41:22,880 --> 00:41:26,000
Speaker 1: rates high and reliability. I have a looked at your

904
00:41:26,360 --> 00:41:29,360
Speaker 1: specific car, so I'm not being critical here. We're talking

905
00:41:29,400 --> 00:41:31,319
Speaker 1: to the public at large here, because if we're playing

906
00:41:31,360 --> 00:41:34,200
Speaker 1: the odds hoping that our repair bills are going to

907
00:41:34,239 --> 00:41:37,160
Speaker 1: come in lower than the price of the extended warranty. Well,

908
00:41:37,160 --> 00:41:40,319
Speaker 1: buying a car making model that consistently rates well from

909
00:41:40,360 --> 00:41:43,680
Speaker 1: different sites like Consumer Reports, that would be wise. An

910
00:41:43,719 --> 00:41:46,880
Speaker 1: extended warranty is rarely an awesome idea, but it just

911
00:41:46,960 --> 00:41:48,840
Speaker 1: makes more sense if you buy a car that's, you know,

912
00:41:48,960 --> 00:41:52,160
Speaker 1: prone to experiencing the problems when it comes to some

913
00:41:52,239 --> 00:41:55,120
Speaker 1: of the different mechanicals in that land Rover, you might

914
00:41:55,160 --> 00:41:58,759
Speaker 1: want to consider the extended warranty. What about the Jaguar, right, yeah,

915
00:41:59,120 --> 00:41:59,719
Speaker 1: just a little more.

916
00:41:59,760 --> 00:42:01,520
Speaker 2: I would think about it for a second longer.

917
00:42:01,560 --> 00:42:04,040
Speaker 1: Okay, So to that, to the defense of that, there's

918
00:42:04,080 --> 00:42:08,160
Speaker 1: a survey of Consumer Reports readers that finds so after

919
00:42:08,400 --> 00:42:11,680
Speaker 1: a decade, they find that the vast majority of Honda, Toyota,

920
00:42:12,040 --> 00:42:16,480
Speaker 1: and Subaru extended warranty buyers would never ever buy one again.

921
00:42:17,040 --> 00:42:19,120
Speaker 1: They ended up paying a lot of money didn't have

922
00:42:19,239 --> 00:42:21,920
Speaker 1: to use it. And I think that that's just it's

923
00:42:21,960 --> 00:42:25,279
Speaker 1: not anecdotal, it's a survey, but it just points to

924
00:42:25,560 --> 00:42:27,720
Speaker 1: the fact that it's not necessary when.

925
00:42:27,680 --> 00:42:29,520
Speaker 2: You purchase the rate, which is interesting, Like you might

926
00:42:29,680 --> 00:42:31,880
Speaker 2: hear that at first pass and say, oh, then why

927
00:42:31,920 --> 00:42:34,160
Speaker 2: are Hana, Toyota and Subarus selling these things that people

928
00:42:34,160 --> 00:42:36,959
Speaker 2: don't like. Well because it makes the money, Well, because

929
00:42:37,000 --> 00:42:39,520
Speaker 2: it makes the money, but also interestingly enough, like when

930
00:42:39,640 --> 00:42:43,360
Speaker 2: you opt for cars that are more reliable historically, it

931
00:42:43,520 --> 00:42:46,600
Speaker 2: just means that the people were most displeased because they

932
00:42:46,600 --> 00:42:48,759
Speaker 2: didn't need to use it. But the ideal would be

933
00:42:49,040 --> 00:42:52,520
Speaker 2: to buy a car that's not going to need and

934
00:42:52,680 --> 00:42:57,279
Speaker 2: you can never fully one assure yourself even a new

935
00:42:57,360 --> 00:42:59,480
Speaker 2: car isn't going to have problems that you're going to

936
00:42:59,520 --> 00:43:02,719
Speaker 2: need to pay for, just especially if it happens just

937
00:43:02,760 --> 00:43:04,680
Speaker 2: outside that warranty period. And like, man, I should have

938
00:43:04,719 --> 00:43:06,799
Speaker 2: got the extended warranty. Matt and Joel were so wrong

939
00:43:06,800 --> 00:43:09,160
Speaker 2: at one hundred and two thousand miles the battery crapped

940
00:43:09,160 --> 00:43:11,680
Speaker 2: out on this feed up, and man, they're idiots. And

941
00:43:12,040 --> 00:43:15,640
Speaker 2: the truth is, those kind of anecdotal stories happen too.

942
00:43:15,760 --> 00:43:17,960
Speaker 2: But if we're playing the odds here, keeping that sixty

943
00:43:18,000 --> 00:43:20,800
Speaker 2: one hundred dollars in your bank account and relying on

944
00:43:21,160 --> 00:43:24,000
Speaker 2: the warranty that already comes with the vehicle should provide

945
00:43:24,040 --> 00:43:26,640
Speaker 2: plenty of peace of mind and plenty of financial ammunition

946
00:43:26,719 --> 00:43:30,359
Speaker 2: in your bank account to pay for something that might

947
00:43:30,480 --> 00:43:31,960
Speaker 2: or might not happen to this car in the future.

948
00:43:32,040 --> 00:43:34,200
Speaker 1: That's true. Okay, let's take a quick email from Ryan.

949
00:43:34,719 --> 00:43:37,640
Speaker 1: I've been looking to switch after tax brokeages from Schwab

950
00:43:38,000 --> 00:43:42,120
Speaker 1: to Fidelity or Vanguard, as Schwab pays big bank interest

951
00:43:42,200 --> 00:43:46,120
Speaker 1: rates on uninvested cash, like zero point five percent. You

952
00:43:46,160 --> 00:43:48,239
Speaker 1: can go higher, but it'll take three days to invest it,

953
00:43:48,640 --> 00:43:51,880
Speaker 1: while Fidelity and Vanguard pay small bank rates five percent

954
00:43:52,000 --> 00:43:54,759
Speaker 1: last I checked, and no time waiting. So I was

955
00:43:54,840 --> 00:43:56,840
Speaker 1: wondering what the best way to do that would be.

956
00:43:56,920 --> 00:43:59,520
Speaker 1: Should I slowly sell and Schwab and buy in the other,

957
00:43:59,680 --> 00:44:01,360
Speaker 1: or what to be possible to do a trustee to

958
00:44:01,400 --> 00:44:05,000
Speaker 1: trustee swap similar to pre tax retirement accounts, which I

959
00:44:05,000 --> 00:44:05,600
Speaker 1: think is.

960
00:44:05,600 --> 00:44:08,600
Speaker 2: A good question. I would be frustrated if I was

961
00:44:08,680 --> 00:44:13,239
Speaker 2: with a brokerage firm and like those sweep accounts where

962
00:44:13,440 --> 00:44:15,880
Speaker 2: your cash is kept before you make investments, if that

963
00:44:16,080 --> 00:44:18,400
Speaker 2: was earning next to nothing, I would be like, what gives?

964
00:44:18,880 --> 00:44:21,759
Speaker 2: Because there are other brokerage firms that don't treat their

965
00:44:21,800 --> 00:44:25,640
Speaker 2: customers like that, and Schwap is a great, low cost

966
00:44:25,680 --> 00:44:27,960
Speaker 2: brokerage firm. So I was like, wait a second, is

967
00:44:28,440 --> 00:44:32,000
Speaker 2: is this for real to schwap pay nothing to cash customers? Well,

968
00:44:32,160 --> 00:44:34,680
Speaker 2: I would just encourage Ryan to check your money market

969
00:44:34,760 --> 00:44:38,160
Speaker 2: funds again. Check what schwab is offering. There are likely

970
00:44:38,360 --> 00:44:41,480
Speaker 2: multiple money market funds that they offer. You might be

971
00:44:41,800 --> 00:44:44,839
Speaker 2: in an inferior one because it looks like the one

972
00:44:44,840 --> 00:44:47,040
Speaker 2: I checked out is returning more than four percent right now,

973
00:44:47,320 --> 00:44:50,960
Speaker 2: which is pretty close to what other money market funds

974
00:44:51,040 --> 00:44:53,480
Speaker 2: are offering at some of our other favorite whit I

975
00:44:53,520 --> 00:44:53,759
Speaker 2: think he.

976
00:44:53,760 --> 00:44:55,600
Speaker 1: Saw that, but what he wrote was that it'll take

977
00:44:55,640 --> 00:44:58,080
Speaker 1: three days to invest it, So I think maybe he's

978
00:44:58,080 --> 00:45:00,640
Speaker 1: seen those. But the big question then entry If that's

979
00:45:00,640 --> 00:45:02,879
Speaker 1: the case, then the big question is what's the rub

980
00:45:02,920 --> 00:45:03,640
Speaker 1: with the three days?

981
00:45:04,320 --> 00:45:06,080
Speaker 2: Why does it take three Yeah? Well, I mean it

982
00:45:06,080 --> 00:45:06,880
Speaker 2: shouldn't take that long.

983
00:45:06,920 --> 00:45:09,640
Speaker 1: Well, it's I mean, it takes time for transactions to

984
00:45:09,719 --> 00:45:11,239
Speaker 1: go through. And maybe I don't know what he's talking

985
00:45:11,280 --> 00:45:13,640
Speaker 1: about transferring the money and then placing the purchase order

986
00:45:13,719 --> 00:45:15,200
Speaker 1: and then just the fact that it's in the ether

987
00:45:15,320 --> 00:45:18,439
Speaker 1: for yeah, yeah, So I don't know, Like it's maybe

988
00:45:18,520 --> 00:45:21,640
Speaker 1: it's more of a principled sort of decision that's driving

989
00:45:21,719 --> 00:45:24,239
Speaker 1: him to want to change brokerages. But that being said,

990
00:45:24,560 --> 00:45:26,960
Speaker 1: if it was. I mean, I personally wouldn't let the

991
00:45:27,000 --> 00:45:30,040
Speaker 1: three days rub me the wrong way. Yeah, but maybe he.

992
00:45:30,080 --> 00:45:32,360
Speaker 2: Also a way question differently. I guess I think I

993
00:45:32,800 --> 00:45:35,439
Speaker 2: heard him saying that, Hey, money that's sitting there ready

994
00:45:35,440 --> 00:45:38,400
Speaker 2: to be invested, I can't earn any meaningful return on

995
00:45:38,520 --> 00:45:41,719
Speaker 2: it while I'm waiting to invest. And if that's the case,

996
00:45:41,800 --> 00:45:44,400
Speaker 2: then I would just say, look to swv x X,

997
00:45:44,480 --> 00:45:49,680
Speaker 2: which is their savings equivalent money market fund. That might

998
00:45:49,760 --> 00:45:51,480
Speaker 2: be the only move you need to make. But if

999
00:45:52,120 --> 00:45:55,680
Speaker 2: if you're if Matt's right here, then I think this

1000
00:45:55,840 --> 00:45:58,440
Speaker 2: might be an issue that you encounter at other brokerages too,

1001
00:45:58,600 --> 00:46:01,439
Speaker 2: not just SWAB. But it's not take some probably not lazy.

1002
00:46:01,520 --> 00:46:02,680
Speaker 1: It's just to move money around.

1003
00:46:02,760 --> 00:46:04,840
Speaker 2: Yeah that those money moves don't happen instantly. It's like

1004
00:46:04,840 --> 00:46:08,399
Speaker 2: a Venmo transfer from your Venmo account into your bank

1005
00:46:08,400 --> 00:46:11,320
Speaker 2: account that typically takes a couple of days unless you

1006
00:46:11,400 --> 00:46:14,680
Speaker 2: hit the instant thing where you have to pay extra then, right, which.

1007
00:46:14,560 --> 00:46:16,480
Speaker 1: You don't want to do you Also, I mean, even

1008
00:46:16,520 --> 00:46:18,319
Speaker 1: if you did, let's say you did want to switch over,

1009
00:46:18,640 --> 00:46:20,480
Speaker 1: maybe there's other reasons, Like I wouldn't say that this

1010
00:46:20,600 --> 00:46:24,359
Speaker 1: is the only reason to switch switch brokerages. Fidelity is great.

1011
00:46:24,400 --> 00:46:26,160
Speaker 1: So let's say you wanted to do that, but if

1012
00:46:26,200 --> 00:46:28,520
Speaker 1: you were to sell your assets there in a brokerage

1013
00:46:28,520 --> 00:46:31,239
Speaker 1: account and then buy them again at another brokerage, that

1014
00:46:31,280 --> 00:46:34,440
Speaker 1: would also trigger tax consequences, and that's something that you

1015
00:46:34,520 --> 00:46:38,160
Speaker 1: certainly want to avoid. Don't pay these capital gains when

1016
00:46:38,200 --> 00:46:40,759
Speaker 1: you don't need to. So if you decided that you're

1017
00:46:40,800 --> 00:46:43,480
Speaker 1: going to be better off at Vanguard, you just do

1018
00:46:43,600 --> 00:46:47,799
Speaker 1: what's known as an act transfer. You call the new

1019
00:46:47,840 --> 00:46:50,160
Speaker 1: brokerage firm you want to start doing business with, and

1020
00:46:50,280 --> 00:46:52,000
Speaker 1: they should help you to be able to do this. Essentially,

1021
00:46:52,040 --> 00:46:54,560
Speaker 1: you're just changing custodians of the funds that you already own.

1022
00:46:55,440 --> 00:46:58,080
Speaker 1: It's like slapping a new label on them. Essentially, you're

1023
00:46:58,120 --> 00:47:01,520
Speaker 1: not selling and then rebuying, which is how you're gonna

1024
00:47:01,600 --> 00:47:02,880
Speaker 1: If you were you to do that, you're gonna be

1025
00:47:02,920 --> 00:47:04,560
Speaker 1: paying a ton of money. Well, it just depends on

1026
00:47:04,560 --> 00:47:06,080
Speaker 1: how much, like how much you got you're selling, but

1027
00:47:06,280 --> 00:47:08,440
Speaker 1: you are most definitely going to be paying capital gains tax.

1028
00:47:08,480 --> 00:47:11,160
Speaker 2: That would be an inefficient way to do it. And yeah,

1029
00:47:11,360 --> 00:47:13,200
Speaker 2: a tax inefficient way to do it that we don't

1030
00:47:13,239 --> 00:47:15,680
Speaker 2: want you to do. And so you mentioned the trusteeder

1031
00:47:15,719 --> 00:47:19,759
Speaker 2: trusting trustee transfer. That's basically what the ACAP process is.

1032
00:47:19,920 --> 00:47:23,440
Speaker 2: But for brokerage accounts. The only potential problem I see

1033
00:47:23,440 --> 00:47:26,520
Speaker 2: in that, though, matters is the reality of proprietary funds.

1034
00:47:26,800 --> 00:47:31,200
Speaker 2: So if you're invested in a proprietary fund, like a

1035
00:47:31,280 --> 00:47:35,480
Speaker 2: Schwab specific fund or for instance, with Fidelity. FC Rocks

1036
00:47:35,840 --> 00:47:38,319
Speaker 2: is an example of this, you likely won't be able

1037
00:47:38,360 --> 00:47:41,600
Speaker 2: to transfer to another brokerage. I would ask your desired

1038
00:47:41,680 --> 00:47:45,120
Speaker 2: new brokerage firm about that first though. I ran into

1039
00:47:45,200 --> 00:47:49,239
Speaker 2: this actually when trying to donate appreciated securities of FC

1040
00:47:49,440 --> 00:47:53,160
Speaker 2: Rocks specifically, and they were like, oh, sorry, proprietary fund,

1041
00:47:53,239 --> 00:47:55,719
Speaker 2: we can't take that. And I was annoyed by that.

1042
00:47:55,880 --> 00:47:58,000
Speaker 2: You gotta sell it right, And I'm like, well, that

1043
00:47:58,400 --> 00:48:01,160
Speaker 2: defeats a purpose. I will money from my saying musccount

1044
00:48:01,160 --> 00:48:03,800
Speaker 2: and said, but yet that that is a problem that

1045
00:48:03,920 --> 00:48:05,800
Speaker 2: I wasn't aware of it until I ran into that

1046
00:48:05,840 --> 00:48:06,480
Speaker 2: little buzz saw.

1047
00:48:06,800 --> 00:48:07,400
Speaker 1: But there is.

1048
00:48:07,880 --> 00:48:10,400
Speaker 2: There's probably a good chance that's staying with Schwab is

1049
00:48:10,440 --> 00:48:12,719
Speaker 2: going to make total sense for you, Ryan. I get

1050
00:48:12,800 --> 00:48:15,680
Speaker 2: the frustration, but hopefully you can overcome it either by

1051
00:48:15,760 --> 00:48:19,279
Speaker 2: choosing the right money market fund or just getting zen

1052
00:48:19,440 --> 00:48:20,719
Speaker 2: with a three day annoyance.

1053
00:48:21,440 --> 00:48:23,920
Speaker 1: All right, The beer that you and I enjoyed today,

1054
00:48:24,040 --> 00:48:28,160
Speaker 1: Joel was called an anatomical transmutation. This is the double

1055
00:48:28,239 --> 00:48:31,280
Speaker 1: I p A by our friends over at Burial, which.

1056
00:48:31,120 --> 00:48:33,680
Speaker 2: You think this was an almost perfect I PA map.

1057
00:48:34,040 --> 00:48:37,800
Speaker 1: It had everything. I can't say perfect, just because what

1058
00:48:38,000 --> 00:48:42,160
Speaker 1: is perfection? Yeah? Yeah, on once you've had the perfect beer,

1059
00:48:42,280 --> 00:48:43,719
Speaker 1: I know, I think at that point you just have

1060
00:48:43,800 --> 00:48:45,439
Speaker 1: to hang it up. But this is pretty you stop

1061
00:48:45,600 --> 00:48:47,480
Speaker 1: drinking beer, I think. I guess so. I guess so,

1062
00:48:48,040 --> 00:48:49,600
Speaker 1: and I am not willing to do that, it's.

1063
00:48:49,520 --> 00:48:52,520
Speaker 2: Right, but this one was like just an incredible representation

1064
00:48:53,360 --> 00:48:54,120
Speaker 2: a hazy ip A.

1065
00:48:54,480 --> 00:48:54,920
Speaker 1: I don't know.

1066
00:48:55,120 --> 00:48:57,000
Speaker 2: I read the back of the label. It said that

1067
00:48:57,120 --> 00:49:00,479
Speaker 2: there's heavy resin in the making of this beer. And also,

1068
00:49:00,680 --> 00:49:02,080
Speaker 2: you know what else I love to see, I guess

1069
00:49:02,080 --> 00:49:03,040
Speaker 2: I love have you resen?

1070
00:49:03,239 --> 00:49:03,399
Speaker 1: Yeah?

1071
00:49:03,400 --> 00:49:04,279
Speaker 2: I was like, I don't know what that is, but

1072
00:49:04,360 --> 00:49:08,000
Speaker 2: it sounds good. And there were hands selected hops, so

1073
00:49:08,080 --> 00:49:09,719
Speaker 2: I think that's kind of cool too. That like, why

1074
00:49:09,880 --> 00:49:13,359
Speaker 2: is Burial at least ahead above the rest? They're out

1075
00:49:13,360 --> 00:49:15,760
Speaker 2: there in the hot fields or whatever point and divine

1076
00:49:15,920 --> 00:49:18,759
Speaker 2: yes that one right? Yes, I mean there is there

1077
00:49:18,840 --> 00:49:22,479
Speaker 2: is something about their selection process, the way they craft

1078
00:49:22,520 --> 00:49:25,200
Speaker 2: their beers that makes them just some of the best

1079
00:49:25,680 --> 00:49:28,239
Speaker 2: in the world. And I think maybe the fact that

1080
00:49:28,320 --> 00:49:30,680
Speaker 2: they're maybe they're going down to that nitty gritty detail

1081
00:49:30,719 --> 00:49:32,479
Speaker 2: of sap or hand selecting the hops that we stick

1082
00:49:32,480 --> 00:49:34,840
Speaker 2: in these beers, and this one it showed.

1083
00:49:34,960 --> 00:49:38,600
Speaker 1: It was perfectly funky, perfectly dank, fruity, earthy all at

1084
00:49:38,600 --> 00:49:40,200
Speaker 1: the same time. I don't know how they're able to

1085
00:49:40,239 --> 00:49:42,040
Speaker 1: pull it off, but it certainly has all the different

1086
00:49:42,040 --> 00:49:44,719
Speaker 1: flavors that I'm looking for when it comes to my

1087
00:49:45,280 --> 00:49:47,719
Speaker 1: double IPA is that I like to partake it.

1088
00:49:47,840 --> 00:49:49,160
Speaker 2: We have reached IPA nirvana.

1089
00:49:49,239 --> 00:49:50,960
Speaker 1: That's what it feels like. That's why now you know

1090
00:49:51,000 --> 00:49:52,960
Speaker 1: why also list out after like the first sip, at

1091
00:49:53,000 --> 00:49:55,480
Speaker 1: the very beginning, it's like, oh my goodness. I think

1092
00:49:55,520 --> 00:49:57,560
Speaker 1: I was just emotionally blown away. I buff what it

1093
00:49:57,719 --> 00:49:59,279
Speaker 1: was that they're able to pull off. I bought this

1094
00:49:59,440 --> 00:50:01,480
Speaker 1: at the brewery, and now the only way to get

1095
00:50:01,520 --> 00:50:03,799
Speaker 1: the get the good stuff. I'm gonna drive four hours

1096
00:50:03,840 --> 00:50:06,799
Speaker 1: and buy more. It's just that good, so you don't

1097
00:50:06,840 --> 00:50:08,040
Speaker 1: pass it up when it's available.

1098
00:50:08,120 --> 00:50:09,759
Speaker 2: Yeah, that's gonna do it for this episode. You can

1099
00:50:09,800 --> 00:50:12,600
Speaker 2: find links to some of the resources we mentioned in

1100
00:50:12,880 --> 00:50:15,040
Speaker 2: our show notes up on the website at how to

1101
00:50:15,160 --> 00:50:18,520
Speaker 2: money dot com. Matt, that's gonna do it. Until next time.

1102
00:50:18,960 --> 00:50:20,600
Speaker 2: Best Friends Out, Best Friends Out,