1 00:00:00,080 --> 00:00:02,760 Speaker 1: Welcome to How the Money. I'm Joel and I am Matt, 2 00:00:02,960 --> 00:00:24,760 Speaker 1: and today we are answering your listener questions schedule. As always, 3 00:00:24,760 --> 00:00:28,040 Speaker 1: we are getting into some questions from the listeners. We've 4 00:00:28,040 --> 00:00:29,880 Speaker 1: got five of them to run through, and on this episode, 5 00:00:29,880 --> 00:00:32,320 Speaker 1: we're going to talk about getting overpaid what to do 6 00:00:32,360 --> 00:00:35,519 Speaker 1: about that when that does happen. I'm terrible unfortunate, and 7 00:00:35,520 --> 00:00:37,199 Speaker 1: I don't know if that's ever happened to me personally. 8 00:00:37,200 --> 00:00:39,480 Speaker 1: You know it hasn't to me either. But we're gonna 9 00:00:39,520 --> 00:00:41,600 Speaker 1: cover a question on I R S debt, and we 10 00:00:41,600 --> 00:00:43,600 Speaker 1: also have a question about an e s p P, 11 00:00:43,800 --> 00:00:46,280 Speaker 1: which is an employee stock purchase plan. That is something 12 00:00:46,720 --> 00:00:48,800 Speaker 1: I'm pretty sure man that we have never talked about 13 00:00:48,840 --> 00:00:51,040 Speaker 1: on this show before, so I am excited to launch 14 00:00:51,040 --> 00:00:53,880 Speaker 1: into that. It's something that I've never had the opportunity 15 00:00:53,920 --> 00:00:56,160 Speaker 1: to take advantage of. What about you? What you mean 16 00:00:56,200 --> 00:01:00,320 Speaker 1: your photography business hasn't gone public yet? It does actually tomorrow. Yeah, 17 00:01:00,360 --> 00:01:02,240 Speaker 1: so hold on heights. You want to get in on 18 00:01:02,240 --> 00:01:04,960 Speaker 1: that I p O right, Yeah, Actually, it's an interesting point. 19 00:01:05,040 --> 00:01:06,600 Speaker 1: There have been a lot of I p O s lately, 20 00:01:06,640 --> 00:01:08,840 Speaker 1: and if you look at kind of how they typically go. 21 00:01:09,200 --> 00:01:11,679 Speaker 1: It's it's usually like just a sinking ship. And so 22 00:01:11,720 --> 00:01:13,680 Speaker 1: many folks are get so excited about an I p 23 00:01:13,760 --> 00:01:15,120 Speaker 1: O and they're like, I want to buy that stock 24 00:01:15,440 --> 00:01:18,680 Speaker 1: that was you if we work right, typically a bad move. 25 00:01:18,760 --> 00:01:20,679 Speaker 1: All of your money is now gone. Yeah, but wait, 26 00:01:20,680 --> 00:01:22,920 Speaker 1: wait till things settle out, and then consider buying if 27 00:01:22,959 --> 00:01:25,679 Speaker 1: you're really that interested. But on the same note, buying 28 00:01:25,680 --> 00:01:28,400 Speaker 1: individual stocks not a great move. But that's a topic 29 00:01:28,400 --> 00:01:30,559 Speaker 1: for another day, another day. But you've got some news 30 00:01:30,560 --> 00:01:32,520 Speaker 1: for us you want to share with our listeners a 31 00:01:32,560 --> 00:01:35,400 Speaker 1: recent purchase you made. Yeah, so, okay, I'm full old 32 00:01:35,400 --> 00:01:38,560 Speaker 1: man at this point, because we we bought a minivan. 33 00:01:38,800 --> 00:01:42,559 Speaker 1: Who I know, minivan life. So I'm thinking about getting 34 00:01:42,560 --> 00:01:44,200 Speaker 1: a bummer sticker that says I used to be cool 35 00:01:44,240 --> 00:01:46,240 Speaker 1: and putting it on the back of the minivan. See, 36 00:01:46,240 --> 00:01:49,560 Speaker 1: that's just not cool, because that's also what some of 37 00:01:49,600 --> 00:01:53,000 Speaker 1: they in your position might do. But instead, just buy 38 00:01:53,160 --> 00:01:55,880 Speaker 1: like a sweet motorcycle or something like that, just to counterbalance. Okay, 39 00:01:55,920 --> 00:01:58,600 Speaker 1: there you go. You want to overcompensate, like very obviously 40 00:01:58,880 --> 00:02:00,920 Speaker 1: with what you're doing with it. I can make that happen. 41 00:02:01,200 --> 00:02:03,640 Speaker 1: But yeah, so we did. We we recently bought a minivan. 42 00:02:03,680 --> 00:02:05,640 Speaker 1: It turns out kind of that we needed a little 43 00:02:05,640 --> 00:02:07,840 Speaker 1: more space down that we have a third kiddo, and 44 00:02:07,920 --> 00:02:10,000 Speaker 1: we decided we decided to go in that direction. And 45 00:02:10,040 --> 00:02:13,120 Speaker 1: I just wanted to let folks know that the minivan 46 00:02:13,160 --> 00:02:15,720 Speaker 1: that we bought was a two thousand six and it 47 00:02:15,760 --> 00:02:19,200 Speaker 1: costs five thousand dollars six. Yeah, that makes it fourteen 48 00:02:19,280 --> 00:02:25,480 Speaker 1: years old. Yeah, yeah, that is awesome. I think sometimes, man, 49 00:02:25,520 --> 00:02:29,000 Speaker 1: when when we talk about buying a used car, a 50 00:02:29,000 --> 00:02:31,760 Speaker 1: lot of people assume that even to buy anything reliable, 51 00:02:31,919 --> 00:02:34,720 Speaker 1: you have to buy something that was three years old, yeah, 52 00:02:34,760 --> 00:02:36,680 Speaker 1: two or three years old, and and at that point 53 00:02:36,680 --> 00:02:39,440 Speaker 1: in time, you know what, still the car has six 54 00:02:39,919 --> 00:02:42,880 Speaker 1: of its value left to depreciate. Whereas when you're buying 55 00:02:42,919 --> 00:02:45,120 Speaker 1: something that's a two thousand and six, man, even if 56 00:02:45,120 --> 00:02:47,519 Speaker 1: I sell it five years from now, I'm gonna lose 57 00:02:47,560 --> 00:02:50,200 Speaker 1: what at most Bucks. And so I just want to 58 00:02:50,280 --> 00:02:55,200 Speaker 1: encourage people that you can find good, older used vehicles 59 00:02:55,560 --> 00:02:57,880 Speaker 1: and you can put a lot more miles on them, 60 00:02:57,919 --> 00:03:00,640 Speaker 1: and really what you're avoiding is the big guess cost 61 00:03:00,720 --> 00:03:02,760 Speaker 1: when it comes to owning a car, and that's depreciation. 62 00:03:03,120 --> 00:03:05,600 Speaker 1: It's not the cost of gas, it's not the cost 63 00:03:05,600 --> 00:03:09,079 Speaker 1: of insurance. It is truly the cost of depreciation. That's 64 00:03:09,080 --> 00:03:10,880 Speaker 1: the biggest thing that you're facing. And so YE had 65 00:03:10,880 --> 00:03:13,240 Speaker 1: this car, man, it had been looked over by a mechanic. 66 00:03:13,480 --> 00:03:16,000 Speaker 1: I knew its history really really well. So I felt 67 00:03:16,040 --> 00:03:18,760 Speaker 1: super comfortable buying this, buying this band, and I have 68 00:03:18,800 --> 00:03:20,920 Speaker 1: a really really good feeling that it's gonna last us 69 00:03:20,960 --> 00:03:23,000 Speaker 1: for a bunch of years to come. Well, man, I'm 70 00:03:23,040 --> 00:03:25,560 Speaker 1: just gonna say that is impressive getting a vehicle that old, 71 00:03:25,800 --> 00:03:29,359 Speaker 1: like you said, financially, an amazing decision. Although we'll see 72 00:03:29,400 --> 00:03:31,560 Speaker 1: if you're being frugal or cheap if it ends up 73 00:03:31,560 --> 00:03:34,320 Speaker 1: crapping out on you, maybe in a hundred thousand miles. Well, 74 00:03:34,320 --> 00:03:36,360 Speaker 1: everything kind of goes out on you hundred thousand miles, right, Like, 75 00:03:36,400 --> 00:03:39,280 Speaker 1: you gotta put some money into any vehicle, sure when 76 00:03:39,320 --> 00:03:40,920 Speaker 1: you drive it for long enough. And that was the thing, 77 00:03:41,000 --> 00:03:43,240 Speaker 1: Like I I talked to the owner. I knew kind 78 00:03:43,240 --> 00:03:45,360 Speaker 1: of what had been done to it, you know, and 79 00:03:45,440 --> 00:03:47,560 Speaker 1: a couple of the major things that tend to go wrong. 80 00:03:48,080 --> 00:03:50,840 Speaker 1: You know, you need to replace brake pads and rotors, 81 00:03:50,880 --> 00:03:53,640 Speaker 1: you need to replace timing belt and water pump. Those 82 00:03:53,680 --> 00:03:55,720 Speaker 1: things have been done and so, and there were other 83 00:03:55,760 --> 00:03:57,200 Speaker 1: things that had been done to it as well, a 84 00:03:57,240 --> 00:03:59,200 Speaker 1: new a C compressor, like all these things that had 85 00:03:59,240 --> 00:04:02,200 Speaker 1: been got a new track for that. Man, Right, all 86 00:04:02,200 --> 00:04:04,800 Speaker 1: these all these things that typically go wrong and cost 87 00:04:04,840 --> 00:04:07,040 Speaker 1: a lot of money had really good tires. So they're 88 00:04:07,120 --> 00:04:09,480 Speaker 1: they're all these expenses that it looks like. I mean, 89 00:04:09,520 --> 00:04:12,200 Speaker 1: I know that, you know, I'm planning for for certain expenses, right, 90 00:04:12,240 --> 00:04:14,200 Speaker 1: that's going to be a line item in my budget. 91 00:04:14,560 --> 00:04:16,919 Speaker 1: But you know what, I'm not planning on spending a 92 00:04:16,920 --> 00:04:18,880 Speaker 1: whole lot more than I would have on a car 93 00:04:19,160 --> 00:04:21,400 Speaker 1: five or six years newer, because this one has been 94 00:04:21,440 --> 00:04:23,280 Speaker 1: taken care of so well. You know, man, Well, I 95 00:04:23,320 --> 00:04:25,360 Speaker 1: wanted to share a little note to the average new 96 00:04:25,400 --> 00:04:29,920 Speaker 1: car buyer spends over five fifty dollars every month in payments. 97 00:04:30,400 --> 00:04:33,040 Speaker 1: That is kind of mind boggling because you think about 98 00:04:33,040 --> 00:04:34,680 Speaker 1: how much car you could get if you were just 99 00:04:34,720 --> 00:04:36,880 Speaker 1: to save that money up instead of actually making payments 100 00:04:36,880 --> 00:04:38,880 Speaker 1: and paying interest. And dude, the big reason for that 101 00:04:38,960 --> 00:04:40,960 Speaker 1: is because so much of our life is on this 102 00:04:41,040 --> 00:04:44,039 Speaker 1: model where we just pay by things monthly. So many 103 00:04:44,040 --> 00:04:47,080 Speaker 1: things are moving to a subscription basis, and I think 104 00:04:47,080 --> 00:04:50,000 Speaker 1: it's rewiring how we think about our expenses and we 105 00:04:50,080 --> 00:04:52,120 Speaker 1: think that this is something that I'm just budgeting for 106 00:04:52,279 --> 00:04:54,920 Speaker 1: this month, and we don't take a new account that 107 00:04:55,000 --> 00:04:57,360 Speaker 1: total cost of ownership. We don't think about depreciation. We're 108 00:04:57,360 --> 00:04:59,600 Speaker 1: not thinking about how much we're actually going to spend 109 00:04:59,600 --> 00:05:01,800 Speaker 1: on that v hicle versus if we were to have 110 00:05:01,839 --> 00:05:04,320 Speaker 1: just paid for that in cash and let alone, versus 111 00:05:04,360 --> 00:05:07,120 Speaker 1: if we would have purchased an older vehicle in cash. 112 00:05:07,160 --> 00:05:08,560 Speaker 1: And so I think this is a great lesson and 113 00:05:08,600 --> 00:05:10,279 Speaker 1: a good challenge for folks because we're not saying that 114 00:05:10,279 --> 00:05:12,120 Speaker 1: you have to purchase a fourteen year old vehicle, But 115 00:05:12,200 --> 00:05:14,320 Speaker 1: at the same time, we don't want you purchasing a 116 00:05:14,320 --> 00:05:16,560 Speaker 1: brain new vehicle or even maybe that two year old vehicle, 117 00:05:16,600 --> 00:05:18,920 Speaker 1: Like there's plenty of vehicles that are three, four or 118 00:05:18,960 --> 00:05:21,600 Speaker 1: five years old all the way up until they're fourteen 119 00:05:21,680 --> 00:05:24,680 Speaker 1: or fifteen, like your your new suite ride, right, Yeah, 120 00:05:24,680 --> 00:05:26,880 Speaker 1: And I think again, Matt, like, so much of this 121 00:05:27,120 --> 00:05:30,400 Speaker 1: is kind of what you value the most personally. Some 122 00:05:30,400 --> 00:05:32,919 Speaker 1: people value buying a new car, and who are we 123 00:05:33,000 --> 00:05:35,160 Speaker 1: to say that that's a terrible idea, Like exactly, there 124 00:05:35,160 --> 00:05:39,240 Speaker 1: are financial things to be considered, and there are some 125 00:05:39,400 --> 00:05:42,440 Speaker 1: decent reasons for buying a new vehicle. You and I. 126 00:05:42,680 --> 00:05:45,080 Speaker 1: That's not what we do, right, That's not what we value. 127 00:05:45,080 --> 00:05:46,880 Speaker 1: And I wanted to say, like, ultimately that's even between 128 00:05:46,920 --> 00:05:49,320 Speaker 1: you and me, Like I think we value vehicles slightly different. 129 00:05:49,400 --> 00:05:52,320 Speaker 1: Right on our end, We've got one vehicle, and so 130 00:05:52,360 --> 00:05:53,919 Speaker 1: that's part of our reasoning because we think, all right, 131 00:05:53,960 --> 00:05:56,000 Speaker 1: we've only got one vehicle. But I think even if 132 00:05:56,000 --> 00:05:59,080 Speaker 1: we had two vehicles, I think we do value maybe 133 00:05:59,120 --> 00:06:01,200 Speaker 1: having a slightly newer vehicle more than you guys, because 134 00:06:01,200 --> 00:06:02,800 Speaker 1: like what you you think about it more from the 135 00:06:02,800 --> 00:06:05,159 Speaker 1: standpoint of like will this get me to the store 136 00:06:05,240 --> 00:06:07,720 Speaker 1: and will get me back safely? Well, yeah, I do. 137 00:06:07,800 --> 00:06:10,280 Speaker 1: I mean, honestly, there were some other considerations in this, 138 00:06:10,320 --> 00:06:13,200 Speaker 1: and there were some some specific, you know, features that 139 00:06:13,279 --> 00:06:15,120 Speaker 1: we were looking for when we bought this car, and 140 00:06:15,120 --> 00:06:17,360 Speaker 1: it had those features and so we were we were glad, 141 00:06:17,400 --> 00:06:19,640 Speaker 1: but we knew that we can get those features in 142 00:06:19,640 --> 00:06:21,320 Speaker 1: a two thousand and six car and if we can 143 00:06:21,360 --> 00:06:24,680 Speaker 1: find the right one, and and granted it's hard. It's 144 00:06:24,720 --> 00:06:26,480 Speaker 1: not like finding a needle in a haystack, but it 145 00:06:26,480 --> 00:06:28,080 Speaker 1: can feel like that at times when you're looking for 146 00:06:28,120 --> 00:06:32,040 Speaker 1: this car that has been incredibly well maintained from someone 147 00:06:32,120 --> 00:06:34,280 Speaker 1: that just has cared for it well. But I want 148 00:06:34,279 --> 00:06:37,440 Speaker 1: to say, like, the biggest consideration for me is where 149 00:06:37,480 --> 00:06:39,800 Speaker 1: do I want my money to go and how do 150 00:06:39,839 --> 00:06:41,480 Speaker 1: I want it to be working for me? And I 151 00:06:41,520 --> 00:06:43,400 Speaker 1: just don't want to sink more of my money into 152 00:06:43,440 --> 00:06:45,520 Speaker 1: a vehicle at least at this point in my life. 153 00:06:45,720 --> 00:06:48,000 Speaker 1: You know, maybe in five or ten years I'll feel 154 00:06:48,040 --> 00:06:50,760 Speaker 1: a little bit differently, and after years and years of 155 00:06:50,839 --> 00:06:53,800 Speaker 1: saving and investing a good chunk, maybe I'll feel a 156 00:06:53,880 --> 00:06:56,680 Speaker 1: little more comfortable spending a little more on something like 157 00:06:56,720 --> 00:06:58,560 Speaker 1: a car. I don't know if that'll ever change for me. 158 00:06:58,600 --> 00:07:00,240 Speaker 1: I don't know if that shift is actually gonna happen, 159 00:07:00,560 --> 00:07:03,039 Speaker 1: But for now, I just don't value it and I 160 00:07:03,080 --> 00:07:05,719 Speaker 1: don't see myself allocating more money towards cars. So I 161 00:07:05,800 --> 00:07:08,599 Speaker 1: was glad to buy two thousand and six vehicle that 162 00:07:08,800 --> 00:07:11,560 Speaker 1: is clean and nice and fits everything that we need. 163 00:07:11,840 --> 00:07:13,880 Speaker 1: Oh please, dude, I've heard you talk about that that 164 00:07:13,960 --> 00:07:16,640 Speaker 1: new v dub electric van. I don't know what they're 165 00:07:16,680 --> 00:07:18,400 Speaker 1: calling it, the Evan again or something like that. That That 166 00:07:18,680 --> 00:07:20,240 Speaker 1: the I D Buzz is that what it's called. I 167 00:07:20,240 --> 00:07:21,880 Speaker 1: think so at least that's what they're calling it. Now, 168 00:07:22,160 --> 00:07:23,720 Speaker 1: that'll be the vehicle you save up your money for, 169 00:07:23,840 --> 00:07:25,960 Speaker 1: and and it'll probably feel more like a splurge for 170 00:07:26,000 --> 00:07:28,240 Speaker 1: you because it may not necessarily be something that you need, 171 00:07:28,280 --> 00:07:30,640 Speaker 1: but you might want it for sure. At that point, 172 00:07:30,680 --> 00:07:33,880 Speaker 1: I'm alty planning ahead. It comes out in two and 173 00:07:33,920 --> 00:07:36,120 Speaker 1: then I'm gonna wait for really five years for it 174 00:07:36,160 --> 00:07:39,920 Speaker 1: to be probably. Okay, so you keep saving up for that, 175 00:07:40,000 --> 00:07:42,600 Speaker 1: and I'll keep saving up for the World Cup semifinals 176 00:07:42,720 --> 00:07:44,720 Speaker 1: when one of those matches is at the Bends, and 177 00:07:44,800 --> 00:07:47,320 Speaker 1: we will spend equivalent amounts of money. You have a 178 00:07:47,400 --> 00:07:50,960 Speaker 1: vehicle and I will have an experience one night of 179 00:07:51,000 --> 00:07:53,600 Speaker 1: amazing nous. Yeah. Nice. It all comes down to what 180 00:07:53,680 --> 00:07:56,040 Speaker 1: you value, right, Like, that's what we're talking about here, true, true, 181 00:07:56,040 --> 00:07:58,160 Speaker 1: for sure. All right, Matt, let's get onto the beer 182 00:07:58,160 --> 00:08:00,640 Speaker 1: that we're having on the show today. We're drinking Mexican 183 00:08:00,720 --> 00:08:04,280 Speaker 1: chocolate Yettie by Great Divide Brewing Company out of Denver, Colorado. Matt, 184 00:08:04,280 --> 00:08:07,120 Speaker 1: I've been to their barrel aging facility. It is very lovely. 185 00:08:07,200 --> 00:08:09,640 Speaker 1: Is that the one that's downtown? Okay, well, then I've 186 00:08:09,680 --> 00:08:11,880 Speaker 1: been there as well. It's a really good spot and 187 00:08:11,880 --> 00:08:14,360 Speaker 1: their yetti beers are just, i mean, a classic mainstay 188 00:08:14,440 --> 00:08:16,360 Speaker 1: in the craft brewing scene at this point in time. 189 00:08:16,400 --> 00:08:19,120 Speaker 1: They've been around for a while and they continue to innovate, 190 00:08:19,160 --> 00:08:21,320 Speaker 1: which is what's amazing about Great Divide. They're kind of 191 00:08:21,320 --> 00:08:23,800 Speaker 1: one of the old school two point oh craft brewers 192 00:08:23,800 --> 00:08:25,640 Speaker 1: on the scene, but they are continuing to do new 193 00:08:25,720 --> 00:08:28,080 Speaker 1: and cool stuff, so they kind of are slide into 194 00:08:28,160 --> 00:08:30,680 Speaker 1: that three point oh category as well. In my book, Yeah, yeah, 195 00:08:30,720 --> 00:08:33,320 Speaker 1: there's staying strong brewing good beer. So let's talk about 196 00:08:33,360 --> 00:08:35,000 Speaker 1: this one at the end of the episode. You got it, man, 197 00:08:35,000 --> 00:08:37,040 Speaker 1: All right, man, let's get to our listener questions. And 198 00:08:37,080 --> 00:08:39,040 Speaker 1: by the way, if you are listening and you have 199 00:08:39,080 --> 00:08:41,800 Speaker 1: a question for us, it's incredibly easy to submit your question. 200 00:08:41,840 --> 00:08:44,520 Speaker 1: Just go to how to money dot com slash ask 201 00:08:44,960 --> 00:08:47,920 Speaker 1: and follow the simple guidelines to submit your voice question 202 00:08:48,160 --> 00:08:50,280 Speaker 1: so that we can hopefully take it on an upcoming episode. 203 00:08:50,280 --> 00:08:52,160 Speaker 1: All right, Matt, let's get to the first one, which 204 00:08:52,240 --> 00:08:55,920 Speaker 1: is about getting overpaid by your employer. Hi, Matt and Jewell. 205 00:08:56,120 --> 00:08:59,800 Speaker 1: This is Tricia from Boston, Massachusetts. I love the podcast. 206 00:09:00,520 --> 00:09:03,360 Speaker 1: I am reaching out today with more of a dilemma 207 00:09:03,400 --> 00:09:10,400 Speaker 1: than a question about being overpaid wages. I work a 208 00:09:10,480 --> 00:09:15,520 Speaker 1: full time job at a nonprofit and as a side gig, 209 00:09:15,559 --> 00:09:18,800 Speaker 1: I thought I would start a part time job as 210 00:09:18,840 --> 00:09:23,320 Speaker 1: a part time events staff for another nonprofit in the area. 211 00:09:24,160 --> 00:09:26,600 Speaker 1: Towards the end of my first month there, my full 212 00:09:26,640 --> 00:09:29,160 Speaker 1: time job got a little busier, so I cut back 213 00:09:29,200 --> 00:09:32,640 Speaker 1: on some of those hours, and I noticed that the 214 00:09:32,760 --> 00:09:35,920 Speaker 1: last paycheck for my part time gig had come in 215 00:09:36,440 --> 00:09:40,120 Speaker 1: and the amount wasn't correct and instead of getting you know, 216 00:09:40,160 --> 00:09:44,760 Speaker 1: two hundred dollars, I got one thousand, two hundred dollars. 217 00:09:45,440 --> 00:09:48,640 Speaker 1: I reached out directly to the executive director at who 218 00:09:48,720 --> 00:09:52,600 Speaker 1: I had worked with, and he assured me that he 219 00:09:52,640 --> 00:09:55,679 Speaker 1: would help fix it. You know. I offered to write 220 00:09:55,679 --> 00:09:59,920 Speaker 1: a check. Flash forward. It's been about two to three 221 00:10:00,000 --> 00:10:03,000 Speaker 1: months since I first pointed this out to him, and 222 00:10:03,040 --> 00:10:06,400 Speaker 1: I've been following up, you know, pretty regularly via email, 223 00:10:06,720 --> 00:10:10,120 Speaker 1: and I haven't really gotten an answer on how to 224 00:10:10,200 --> 00:10:14,360 Speaker 1: fix this. Are there other common ways to pay this back? 225 00:10:14,840 --> 00:10:18,680 Speaker 1: Should I just send in a check? Um? I I 226 00:10:18,760 --> 00:10:22,880 Speaker 1: really don't like the extra money floating around in my account, 227 00:10:23,080 --> 00:10:26,160 Speaker 1: so any insight or experience you have with this would 228 00:10:26,200 --> 00:10:28,760 Speaker 1: be great. Thank you guys so much. I love the 229 00:10:28,800 --> 00:10:31,960 Speaker 1: podcast well, Joel, I think this is a very unique 230 00:10:32,360 --> 00:10:36,199 Speaker 1: problem that Tricia has. Most nonprofits have the opposite problem, right, 231 00:10:36,240 --> 00:10:38,440 Speaker 1: Like they can't get people to give them money. In here, 232 00:10:38,480 --> 00:10:40,160 Speaker 1: we've got Tricia and she's trying to give them back 233 00:10:40,200 --> 00:10:42,559 Speaker 1: the money that they incorrectly paid her. And it sounds 234 00:10:42,559 --> 00:10:44,720 Speaker 1: like she's having a tough time. Yeah, And honestly, another 235 00:10:44,840 --> 00:10:48,280 Speaker 1: problem that happens in nonprofits is it employees just don't 236 00:10:48,280 --> 00:10:50,760 Speaker 1: get paid enough to stay oftentimes, and so Tricia is 237 00:10:50,800 --> 00:10:53,240 Speaker 1: getting paid quite handsomely for her work. If this nonprofit, 238 00:10:53,400 --> 00:10:57,040 Speaker 1: I would say she shouldn't have given up that side hustle. Right, Yeah, Well, 239 00:10:57,120 --> 00:10:58,439 Speaker 1: let's get into it. I mean, I think there are 240 00:10:58,559 --> 00:11:00,040 Speaker 1: some things that need to be considered if you you 241 00:11:00,080 --> 00:11:04,079 Speaker 1: get overpaid by your employer, and specifically Tricia, Let's talk 242 00:11:04,080 --> 00:11:07,920 Speaker 1: about the ethical ramifications of being overpaid by your employer. First, 243 00:11:08,440 --> 00:11:11,280 Speaker 1: I think you've done the right thing. You've notified your 244 00:11:11,280 --> 00:11:15,200 Speaker 1: employer about being overpaid, so ethically you're in a good 245 00:11:15,240 --> 00:11:18,280 Speaker 1: position here. Typically, at some point, even if you don't, 246 00:11:18,320 --> 00:11:20,600 Speaker 1: your employer will reach back out to you and say 247 00:11:20,920 --> 00:11:23,240 Speaker 1: you got overpaid. Now we have to start taking money 248 00:11:23,280 --> 00:11:26,320 Speaker 1: out of your future paychecks. That's probably what's gonna happen 249 00:11:26,480 --> 00:11:28,720 Speaker 1: if you do get overpaid and you don't mention it. 250 00:11:28,800 --> 00:11:30,920 Speaker 1: So it's better to be above board and try to 251 00:11:30,920 --> 00:11:33,240 Speaker 1: pay that money back as quickly as possible. It's the 252 00:11:33,320 --> 00:11:35,960 Speaker 1: right ethical thing to do. And then also let's talk 253 00:11:35,960 --> 00:11:39,760 Speaker 1: about legally your your employer has the right to recoup 254 00:11:39,800 --> 00:11:42,000 Speaker 1: that money. Laws vary depending on the state that you 255 00:11:42,040 --> 00:11:45,840 Speaker 1: live in, but the statute of limitations for overpayment of 256 00:11:45,880 --> 00:11:48,960 Speaker 1: salary can vary anywhere from like six months to six years, 257 00:11:49,160 --> 00:11:51,360 Speaker 1: and I've even heard that some states have over a 258 00:11:51,480 --> 00:11:54,840 Speaker 1: ten year uh statute of limitations. So check your local 259 00:11:54,840 --> 00:11:57,160 Speaker 1: state law to be aware of how long they are 260 00:11:57,280 --> 00:12:00,280 Speaker 1: legally able to require you to pay that money. Act. 261 00:12:00,520 --> 00:12:02,880 Speaker 1: We covered the ethical framework, but also legally, if you're 262 00:12:02,920 --> 00:12:06,120 Speaker 1: overpaid from your employer, you're required to pay that money back. 263 00:12:06,440 --> 00:12:09,360 Speaker 1: And Clatricia, you're asking what you should do about it now, 264 00:12:09,960 --> 00:12:11,840 Speaker 1: and our advice right now would be just to not 265 00:12:11,880 --> 00:12:13,800 Speaker 1: worry about it. You've taken the steps, you've done the 266 00:12:13,880 --> 00:12:17,199 Speaker 1: legwork to make every reasonable effort to notify them that 267 00:12:17,240 --> 00:12:20,679 Speaker 1: they've messed up. You've followed up pretty regularly, it sounds 268 00:12:20,720 --> 00:12:23,760 Speaker 1: like by email to the director like that puts you 269 00:12:23,840 --> 00:12:26,720 Speaker 1: in the clear, especially considering that he's confirmed that he 270 00:12:26,760 --> 00:12:29,360 Speaker 1: would help fix the error. There's not going to be 271 00:12:29,400 --> 00:12:31,960 Speaker 1: any confusion like once this error is discovered and they 272 00:12:32,000 --> 00:12:34,160 Speaker 1: try to remedy it, that you weren't trying to do 273 00:12:34,280 --> 00:12:36,280 Speaker 1: the right thing. And so at this point we'd say 274 00:12:36,360 --> 00:12:38,760 Speaker 1: to just set that money aside in a high interest 275 00:12:38,840 --> 00:12:41,959 Speaker 1: savings account, hopefully maybe where you have your emergency fund 276 00:12:41,960 --> 00:12:43,960 Speaker 1: as well. But basically you want a ear market to 277 00:12:44,000 --> 00:12:47,640 Speaker 1: go back to that nonprofit if or when they finally 278 00:12:47,679 --> 00:12:50,800 Speaker 1: get that ball rolling and fix that on their end. Yeah, man, 279 00:12:50,840 --> 00:12:52,880 Speaker 1: I think the worst thing that could happen is to, 280 00:12:53,480 --> 00:12:56,240 Speaker 1: you know, get overpaid, then spend the money, and then 281 00:12:56,320 --> 00:12:58,640 Speaker 1: your company comes calling and they're like, hey, yeah, we 282 00:12:58,679 --> 00:13:00,560 Speaker 1: overpaid you, we need that money back, and you're like, 283 00:13:00,640 --> 00:13:02,600 Speaker 1: I don't have it. And so that's just a tough 284 00:13:02,640 --> 00:13:05,640 Speaker 1: scenario to be in both ethically and monetarily, right. You 285 00:13:05,640 --> 00:13:07,520 Speaker 1: want to have that money at your disposal to be 286 00:13:07,520 --> 00:13:10,240 Speaker 1: able to pay back the over payment when and if 287 00:13:10,280 --> 00:13:12,200 Speaker 1: they do come back at you. And then I think 288 00:13:12,240 --> 00:13:15,160 Speaker 1: to Tricia, the final Shefford, and you mentioned it in 289 00:13:15,200 --> 00:13:18,560 Speaker 1: your question, is if you do want to completely try 290 00:13:18,559 --> 00:13:21,120 Speaker 1: and wash your hands of it. You should send them 291 00:13:21,120 --> 00:13:24,200 Speaker 1: a check via certified mail and keep that record on 292 00:13:24,240 --> 00:13:27,080 Speaker 1: your end. There's a chance that they still don't deposit 293 00:13:27,120 --> 00:13:30,000 Speaker 1: that check, but now you've pretty much taken every effort 294 00:13:30,160 --> 00:13:32,480 Speaker 1: in order to get that money back to them. And 295 00:13:32,520 --> 00:13:34,360 Speaker 1: so if that's the case they still don't take your money, 296 00:13:34,360 --> 00:13:36,679 Speaker 1: they don't cash the check, well, you still need to 297 00:13:36,720 --> 00:13:39,560 Speaker 1: keep it set aside because the statute of limitations can 298 00:13:39,600 --> 00:13:41,839 Speaker 1: be so long depending on what states you're in. More 299 00:13:41,880 --> 00:13:44,480 Speaker 1: than anything, I would keep in contact with the director, 300 00:13:44,960 --> 00:13:47,080 Speaker 1: consider sending that check if you really want to go 301 00:13:47,120 --> 00:13:49,800 Speaker 1: above and beyond and get that money paid back to 302 00:13:49,880 --> 00:13:52,240 Speaker 1: that employer. I'm sorry, I know it's frustrating. I know 303 00:13:52,280 --> 00:13:54,480 Speaker 1: it's annoying, like to be sitting on a pile of 304 00:13:54,520 --> 00:13:56,959 Speaker 1: money that you know you're gonna send back at some point, 305 00:13:57,080 --> 00:13:58,640 Speaker 1: and you're just kind of hoping they get their act 306 00:13:58,640 --> 00:14:01,080 Speaker 1: together sooner rather than later. For sure. Joel on the 307 00:14:01,200 --> 00:14:03,480 Speaker 1: note of free money, have what's the most you've ever found? 308 00:14:03,679 --> 00:14:05,679 Speaker 1: Not just change on public but like, what what kind 309 00:14:05,679 --> 00:14:08,160 Speaker 1: of bills have you found? Like twenty dollar bill? I think, yeah, 310 00:14:08,280 --> 00:14:10,680 Speaker 1: same here. I had a stretch in my life after 311 00:14:10,760 --> 00:14:12,600 Speaker 1: Kat and I got married where I think like three 312 00:14:12,679 --> 00:14:14,480 Speaker 1: months in a row, I found a twenty dollar bill, 313 00:14:14,640 --> 00:14:17,440 Speaker 1: different cities, different grocery stores, but it was always at 314 00:14:17,480 --> 00:14:19,600 Speaker 1: a grocery store and twenty dollar bill on the ground 315 00:14:19,600 --> 00:14:21,120 Speaker 1: in the parking lot. Like what do you do in 316 00:14:21,120 --> 00:14:24,160 Speaker 1: that situation? Because everybody wants to have some cash, Like 317 00:14:24,160 --> 00:14:26,240 Speaker 1: I would kind of pick it up and look around 318 00:14:26,520 --> 00:14:28,400 Speaker 1: see if there's somebody that's like hustling back to try 319 00:14:28,400 --> 00:14:30,240 Speaker 1: to like find some money, because it's easy to believe 320 00:14:30,280 --> 00:14:32,160 Speaker 1: that somebody is you know, has actually lost the money. 321 00:14:32,160 --> 00:14:33,800 Speaker 1: If they're looking like I'm looking for a twenty dollar bill, 322 00:14:33,800 --> 00:14:35,320 Speaker 1: like where have you seen it? It's like, yeah, I 323 00:14:35,360 --> 00:14:37,720 Speaker 1: just picked it up. But otherwise, man, that's that's money 324 00:14:37,720 --> 00:14:39,600 Speaker 1: that can go towards that frozen pizza. So when you're 325 00:14:39,600 --> 00:14:42,000 Speaker 1: gonna start asking those questions like who's pictures on this 326 00:14:42,360 --> 00:14:44,640 Speaker 1: twenty dollar bill? Huh? If it's yours, tell me some 327 00:14:44,680 --> 00:14:47,560 Speaker 1: details about some identifying features of that cash. What year 328 00:14:47,600 --> 00:14:49,320 Speaker 1: was it printed in? Huh? But I always do feel 329 00:14:49,360 --> 00:14:51,080 Speaker 1: a little bit weird anytime you get something like that 330 00:14:51,080 --> 00:14:52,800 Speaker 1: that's not years. But actually, if it's that big, if 331 00:14:52,800 --> 00:14:55,240 Speaker 1: it's like you know, a dime or a quarter, who cares. 332 00:14:55,280 --> 00:14:57,160 Speaker 1: But yeah, when you're talking about finding a twenty dollar 333 00:14:57,200 --> 00:14:59,120 Speaker 1: bill and like, well, somebody's probably missing that. Yeah, you 334 00:14:59,120 --> 00:15:00,920 Speaker 1: feel bad. And the whole time I'm in the grocery store, 335 00:15:00,920 --> 00:15:02,480 Speaker 1: I'm kind of looking for somebody like that looks like 336 00:15:02,720 --> 00:15:05,520 Speaker 1: they need money. Sure, Yeah, basically it's like is it him? 337 00:15:05,640 --> 00:15:07,520 Speaker 1: Is it is it her? Like did she drop it? 338 00:15:07,840 --> 00:15:09,280 Speaker 1: But yeah, I don't know, Trish. I say that because 339 00:15:09,320 --> 00:15:11,200 Speaker 1: identify with you and that that feeling that you have 340 00:15:11,320 --> 00:15:13,880 Speaker 1: something that isn't technically yours, but at the same time 341 00:15:13,920 --> 00:15:15,920 Speaker 1: you don't know how to get it back to them, 342 00:15:15,960 --> 00:15:17,880 Speaker 1: and it sounds like you are taking all the right steps. 343 00:15:17,920 --> 00:15:20,000 Speaker 1: So yeah, just keep it up. Yeah, all right, trisire, 344 00:15:20,000 --> 00:15:22,800 Speaker 1: good luck, And we got some more questions, including we'll 345 00:15:22,800 --> 00:15:25,040 Speaker 1: get to that question about I R S det and 346 00:15:25,080 --> 00:15:27,160 Speaker 1: what do you do when you've got money that you 347 00:15:27,200 --> 00:15:29,080 Speaker 1: owe the I R S. We'll get to that right 348 00:15:29,080 --> 00:15:39,760 Speaker 1: after the break. All right, Joel, We're back from the break, 349 00:15:39,800 --> 00:15:41,760 Speaker 1: and we have a question nath I'm a listener and 350 00:15:41,840 --> 00:15:44,720 Speaker 1: she has a question about converting a four O one K. 351 00:15:44,920 --> 00:15:47,920 Speaker 1: So let's hear it. Hi, Joel, in that my name 352 00:15:48,000 --> 00:15:52,480 Speaker 1: is Jamie. I'm from Hoboken, New Jersey. I love listening 353 00:15:52,520 --> 00:15:55,440 Speaker 1: to your podcast. You guys got me to really start 354 00:15:55,480 --> 00:15:58,280 Speaker 1: thinking about my money and how to save and spend better. 355 00:15:58,880 --> 00:16:01,440 Speaker 1: My question is about rolling over a four one K 356 00:16:01,680 --> 00:16:05,360 Speaker 1: into an IRA or a roth Ira. I have about 357 00:16:05,440 --> 00:16:09,440 Speaker 1: twenty dollars vested in a Charles Schwab for one K 358 00:16:09,640 --> 00:16:12,880 Speaker 1: from my previous employer. The expense ratio is on my 359 00:16:12,960 --> 00:16:17,120 Speaker 1: elections range from point o two to point five seven. 360 00:16:17,800 --> 00:16:21,120 Speaker 1: It is also actively managed, which I was already planning 361 00:16:21,160 --> 00:16:24,240 Speaker 1: to end to reduce fees. Should I roll is over 362 00:16:24,600 --> 00:16:28,160 Speaker 1: into an Ira or roth Irara? I currently have a 363 00:16:28,240 --> 00:16:31,880 Speaker 1: roth Irara with Fidelity. What are the benefits of leaving 364 00:16:31,880 --> 00:16:34,880 Speaker 1: it as is or rolling it over? Thanks so much 365 00:16:34,920 --> 00:16:38,840 Speaker 1: for you all. All right, that's awesome, Jamie twenty bucks 366 00:16:38,840 --> 00:16:42,560 Speaker 1: in retirement already, that's fantastic. And you know what, Charles Schwab, well, 367 00:16:42,560 --> 00:16:44,600 Speaker 1: they're a pretty great company to be doing business with. 368 00:16:44,920 --> 00:16:47,360 Speaker 1: They have lots of low cost investing options to their 369 00:16:47,360 --> 00:16:50,600 Speaker 1: customer service is really good too. But let's talk about 370 00:16:50,640 --> 00:16:54,920 Speaker 1: specifically that conversion and is it a good idea to 371 00:16:54,920 --> 00:16:56,880 Speaker 1: to convert your four O one K to an I RA. 372 00:16:57,320 --> 00:16:59,640 Speaker 1: There's a lot to consider here. I think Matt Let's 373 00:16:59,720 --> 00:17:03,720 Speaker 1: quickly mentioned one potential downside of rolling over a four 374 00:17:03,720 --> 00:17:06,320 Speaker 1: oh one K to an IRA is that you could 375 00:17:06,359 --> 00:17:09,879 Speaker 1: lose access to some funds that you might currently be 376 00:17:09,920 --> 00:17:12,840 Speaker 1: able to invest in in your employer's plan. This is 377 00:17:13,040 --> 00:17:16,280 Speaker 1: a pretty minor downside though, because the normal options available 378 00:17:16,280 --> 00:17:18,760 Speaker 1: to everyone at Charles Schwab or at Fidelity, the two 379 00:17:18,800 --> 00:17:21,800 Speaker 1: companies you do business with, Jamie, are great. So, Matt, 380 00:17:21,840 --> 00:17:23,960 Speaker 1: I did want to mention this though, because, for instance, 381 00:17:23,960 --> 00:17:26,080 Speaker 1: inside my employee four oh one K plan, I have 382 00:17:26,119 --> 00:17:29,520 Speaker 1: access to a target retirement fund that has lower expense 383 00:17:29,600 --> 00:17:33,000 Speaker 1: fees than anyone I could get on the open market, 384 00:17:33,200 --> 00:17:38,000 Speaker 1: So that you fancy. So employers, just because of their size, 385 00:17:38,320 --> 00:17:40,440 Speaker 1: they have this ability to be able to get funds 386 00:17:40,480 --> 00:17:43,000 Speaker 1: that have lower expense ratios and offer those to their employees. 387 00:17:43,119 --> 00:17:45,040 Speaker 1: So just kind of one of those things. It's not 388 00:17:45,240 --> 00:17:47,440 Speaker 1: that big of a deal because you know, with these 389 00:17:47,440 --> 00:17:50,920 Speaker 1: low class companies, the expenses are already just incredibly low. 390 00:17:51,080 --> 00:17:53,560 Speaker 1: We're talking about just a couple hundreds of a percent 391 00:17:54,040 --> 00:17:57,040 Speaker 1: different expense, but d really small. It is one of 392 00:17:57,040 --> 00:17:59,960 Speaker 1: those things, and it's worth mentioning, definitely, definitely. Yeah. So well, Jamie, 393 00:18:00,040 --> 00:18:01,720 Speaker 1: you know, you're talking about rolling the four O one 394 00:18:01,800 --> 00:18:04,560 Speaker 1: K over, we think actually converting that to an IRA 395 00:18:04,720 --> 00:18:06,840 Speaker 1: it's a good idea, and we see no issues with 396 00:18:06,920 --> 00:18:09,800 Speaker 1: keeping your money with Schwab either. It sounds like you're 397 00:18:09,800 --> 00:18:13,240 Speaker 1: already aware of those high cost funds that are actively managed, 398 00:18:13,480 --> 00:18:15,960 Speaker 1: so the fact that you are moving away from those 399 00:18:16,000 --> 00:18:18,320 Speaker 1: expensive products like that is smart and that's what you 400 00:18:18,320 --> 00:18:20,320 Speaker 1: need to be doing. You'll be set with funds that 401 00:18:20,359 --> 00:18:23,720 Speaker 1: have an expense ratio around point zero two percent, but 402 00:18:23,840 --> 00:18:26,439 Speaker 1: we would advise you to avoid the different funds that 403 00:18:26,440 --> 00:18:29,960 Speaker 1: put you closer to half a percent in costs. Yeah, 404 00:18:29,960 --> 00:18:32,360 Speaker 1: there's nothing wrong with staying put and having that four 405 00:18:32,359 --> 00:18:34,399 Speaker 1: own K with Schwab as long as you're you know, 406 00:18:34,480 --> 00:18:38,320 Speaker 1: changing your fund choices to less expensive, wide widely diversified 407 00:18:38,320 --> 00:18:40,640 Speaker 1: funds inside of that four O one K with Schwab. 408 00:18:40,920 --> 00:18:43,520 Speaker 1: But if you rolled it over into an IRA, that's 409 00:18:43,520 --> 00:18:45,760 Speaker 1: not a bad move either. If you did want to 410 00:18:45,800 --> 00:18:48,680 Speaker 1: move it all to Fidelity, let's say, and have all 411 00:18:48,680 --> 00:18:51,479 Speaker 1: of your iras in one place, well, just know that 412 00:18:51,520 --> 00:18:53,920 Speaker 1: Schwab does have a fifty dollar fee for a full 413 00:18:53,960 --> 00:18:56,920 Speaker 1: account transfer to a different trustee, but that's pretty minor 414 00:18:57,000 --> 00:18:58,760 Speaker 1: in the grand scheme of things, it's not all that much. 415 00:18:59,240 --> 00:19:01,400 Speaker 1: The benefit here is that you already have a wrath 416 00:19:01,440 --> 00:19:05,119 Speaker 1: with Fidelity and you're familiar kind of with their ecosystem. Obviously, two, 417 00:19:05,200 --> 00:19:08,080 Speaker 1: we've mentioned this before. Fidelity has those zero cost funds, 418 00:19:08,119 --> 00:19:10,520 Speaker 1: So even though you've got the super cheap expense ratio 419 00:19:10,560 --> 00:19:13,359 Speaker 1: with Schwab, you can't be free and that's what Fidelity offers. 420 00:19:13,400 --> 00:19:14,919 Speaker 1: So so yeah, if you're gonna do that, just know 421 00:19:14,920 --> 00:19:17,960 Speaker 1: you're gonna pay fifty bucks for the ability to make 422 00:19:17,960 --> 00:19:19,959 Speaker 1: it happen. But you know what, that's a good move too. 423 00:19:20,480 --> 00:19:22,280 Speaker 1: And so we think the hardest part of your question 424 00:19:22,400 --> 00:19:24,600 Speaker 1: might be the decision of whether or not you're gonna 425 00:19:24,680 --> 00:19:27,600 Speaker 1: roll into a wrath or a regular I ra A. 426 00:19:28,080 --> 00:19:30,280 Speaker 1: We would suggest rolling into a wrath if you have 427 00:19:30,320 --> 00:19:33,080 Speaker 1: the money to pay taxes on those converted funds when 428 00:19:33,160 --> 00:19:36,560 Speaker 1: you file your taxes. Tax rates are very low right now, 429 00:19:36,640 --> 00:19:40,719 Speaker 1: so you might only owe on that entire conversion and 430 00:19:40,760 --> 00:19:43,919 Speaker 1: then you'll never be taxed on that money. Again. For me, 431 00:19:44,119 --> 00:19:46,040 Speaker 1: that makes me very happy to know that this is 432 00:19:46,080 --> 00:19:48,600 Speaker 1: something that you have, and then moving forward, that is 433 00:19:48,640 --> 00:19:51,280 Speaker 1: just such a strong position to be in. And plus 434 00:19:51,320 --> 00:19:53,080 Speaker 1: you already have a wrath, So you can put that 435 00:19:53,119 --> 00:19:55,479 Speaker 1: money there in that rath there with Fidelity. If you 436 00:19:55,520 --> 00:19:57,879 Speaker 1: don't have the cash, however, on hand to pay the 437 00:19:57,920 --> 00:20:00,000 Speaker 1: taxes on that conversion, you can open up a tradition 438 00:20:00,000 --> 00:20:02,720 Speaker 1: an IRA with Fidelity as well and put it there. 439 00:20:02,760 --> 00:20:04,840 Speaker 1: In this case, you would have both pre tax money 440 00:20:04,880 --> 00:20:07,320 Speaker 1: in your retirement as well as some post tax so 441 00:20:07,359 --> 00:20:10,439 Speaker 1: that allows you to diversify the tax structure on your 442 00:20:10,440 --> 00:20:14,000 Speaker 1: retirement accounts. That basically diversifies that tax liability. Yeah. Man, 443 00:20:14,040 --> 00:20:15,879 Speaker 1: I think you made a good point though, Matt, that 444 00:20:15,920 --> 00:20:18,720 Speaker 1: when we're talking about current tax rates, they're super low 445 00:20:19,080 --> 00:20:20,879 Speaker 1: and they're not going to stay this way forever for 446 00:20:20,960 --> 00:20:24,440 Speaker 1: multiple reasons. One because the current tax law is set 447 00:20:24,480 --> 00:20:27,199 Speaker 1: to expire mid this decade. The other thing is just 448 00:20:27,359 --> 00:20:30,679 Speaker 1: the liabilities that our government is facing, well, they continue 449 00:20:30,720 --> 00:20:32,520 Speaker 1: to grow and grow. And so anybody just kind of 450 00:20:32,560 --> 00:20:35,800 Speaker 1: sitting on the sidelines armchair quarterbacking kind of knows the 451 00:20:35,840 --> 00:20:37,840 Speaker 1: writings on the wall that the tax rates are gonna 452 00:20:37,840 --> 00:20:39,600 Speaker 1: have to go up. And so if you are able 453 00:20:39,640 --> 00:20:42,119 Speaker 1: to take advantage of low tax rates, now pay the 454 00:20:42,160 --> 00:20:44,480 Speaker 1: tax and then allow that money to grow tax free 455 00:20:44,480 --> 00:20:46,920 Speaker 1: for years to come. Well, then converting all the way 456 00:20:46,960 --> 00:20:49,560 Speaker 1: over into a roth. Ira makes a whole lot of sense. 457 00:20:49,640 --> 00:20:51,760 Speaker 1: I think that's why we love the rath for sure. 458 00:20:52,280 --> 00:20:54,200 Speaker 1: It also wanted up mentioned to make sure that when 459 00:20:54,200 --> 00:20:56,600 Speaker 1: you do that rollover, Jamie, that you do a direct 460 00:20:56,640 --> 00:20:58,920 Speaker 1: transfer as well, so that that way it's going from 461 00:20:59,320 --> 00:21:02,520 Speaker 1: custodian a custodian. That way you can avoid any potential 462 00:21:02,560 --> 00:21:04,320 Speaker 1: penalties if you happen to sit on that check for 463 00:21:04,359 --> 00:21:07,280 Speaker 1: too long, just just have it sent directly over to Fidelity. 464 00:21:07,359 --> 00:21:09,320 Speaker 1: If you're planning to go with him. Yep, that is 465 00:21:09,359 --> 00:21:12,200 Speaker 1: the worst of all possible scenarios. You get the check, 466 00:21:12,320 --> 00:21:14,960 Speaker 1: you forget you oh, penalties and tax. That's not a 467 00:21:14,960 --> 00:21:16,600 Speaker 1: good place to be in. All right, Matt, Let's get 468 00:21:16,640 --> 00:21:20,240 Speaker 1: into our next question about owing the I R S money. Hello, 469 00:21:20,520 --> 00:21:23,480 Speaker 1: my name is Michael and I'm from San Antonio, Texas. 470 00:21:24,080 --> 00:21:27,919 Speaker 1: Great podcast and a look forward to each episode. I 471 00:21:27,960 --> 00:21:31,240 Speaker 1: have a question about paying off debt. I'm currently paying 472 00:21:31,280 --> 00:21:34,840 Speaker 1: off my debt using the debt snowball method. I'm highly 473 00:21:34,880 --> 00:21:38,280 Speaker 1: motivated using this method, have paid off to credit cards 474 00:21:38,359 --> 00:21:42,560 Speaker 1: in nineteen Recently, I was informed by the I R 475 00:21:42,840 --> 00:21:45,240 Speaker 1: S that I did not pay enough taxes back in 476 00:21:46,800 --> 00:21:50,080 Speaker 1: so I owe the i R S approximately six thousand 477 00:21:50,119 --> 00:21:53,640 Speaker 1: dollars and I have requested the maximum amount of time 478 00:21:53,720 --> 00:21:57,720 Speaker 1: to repay. I am waiting for a response. My two 479 00:21:57,760 --> 00:22:02,679 Speaker 1: remaining credit cards have approximately three thousand, six hundred in 480 00:22:02,760 --> 00:22:07,560 Speaker 1: four thousand, three hundred dollar balances. So my question is 481 00:22:08,119 --> 00:22:12,400 Speaker 1: should I continue with my debt snowball method and continue 482 00:22:12,800 --> 00:22:16,920 Speaker 1: aggressively paying down the credit card with the three thousand, 483 00:22:17,240 --> 00:22:21,960 Speaker 1: six hundred dollar balance, or should I refocus and aggressively 484 00:22:22,080 --> 00:22:26,080 Speaker 1: pay off the I R S that So, what are 485 00:22:26,119 --> 00:22:29,560 Speaker 1: your thoughts? Thanks well, Michael. First, before we get to 486 00:22:29,600 --> 00:22:31,720 Speaker 1: your question, let's just say a quick congrats to you 487 00:22:31,760 --> 00:22:34,480 Speaker 1: on getting after your credit card debt using the debt 488 00:22:34,480 --> 00:22:37,440 Speaker 1: snowball method. Like that is just awesome that it's working 489 00:22:37,480 --> 00:22:39,879 Speaker 1: for you. This is just more proof that it's not 490 00:22:39,960 --> 00:22:42,640 Speaker 1: about the math. It's about the emotion of paying down 491 00:22:42,680 --> 00:22:45,080 Speaker 1: debt and actually feeling like you're gaining some traction and 492 00:22:45,119 --> 00:22:48,480 Speaker 1: making some progress. This is really valuable that it's allowed 493 00:22:48,520 --> 00:22:50,640 Speaker 1: you to knock out a bunch of debt. However, the 494 00:22:50,720 --> 00:22:53,720 Speaker 1: I R S isn't a regular creditor, so there are 495 00:22:53,800 --> 00:22:56,840 Speaker 1: a few additional things that we want you to consider. First, Yeah, 496 00:22:56,880 --> 00:22:58,960 Speaker 1: mat the I R S is different than any other 497 00:22:59,000 --> 00:23:02,280 Speaker 1: creditor out there. And it's a bummer, Michael, that you're 498 00:23:02,280 --> 00:23:04,320 Speaker 1: going to owe fees for failure to pay. But there's 499 00:23:04,359 --> 00:23:06,120 Speaker 1: nothing you can do to change the past, to change 500 00:23:06,119 --> 00:23:08,840 Speaker 1: what happened in with that return and that you didn't 501 00:23:08,840 --> 00:23:11,800 Speaker 1: pay enough in tax. And depending on how much you 502 00:23:11,840 --> 00:23:13,639 Speaker 1: owe and the way that your payment plan with the 503 00:23:13,640 --> 00:23:16,160 Speaker 1: i r S is structured, well, it could add more 504 00:23:16,200 --> 00:23:19,639 Speaker 1: penalties and more interest to your payoff amount. So make 505 00:23:19,680 --> 00:23:22,399 Speaker 1: sure you're aware of the details and the finer points 506 00:23:22,400 --> 00:23:25,399 Speaker 1: of your payoff plan. And that is all something you 507 00:23:25,520 --> 00:23:29,760 Speaker 1: take into consideration as you continue with your debt snowball. Ultimately, 508 00:23:29,920 --> 00:23:32,840 Speaker 1: the i r S is going to take top priority 509 00:23:33,040 --> 00:23:35,280 Speaker 1: as to where you should kind of focus your attention, 510 00:23:35,640 --> 00:23:38,320 Speaker 1: uh and in paying that debt off before you continue 511 00:23:38,520 --> 00:23:40,560 Speaker 1: the debt snowball with your credit cards. And Matt, do 512 00:23:40,600 --> 00:23:43,159 Speaker 1: you want to discuss why we think paying back the 513 00:23:43,160 --> 00:23:45,640 Speaker 1: i r S is more important than paying off your 514 00:23:45,640 --> 00:23:49,000 Speaker 1: credit cards? Yeah, well, defaulting on the installment agreement is 515 00:23:49,080 --> 00:23:51,280 Speaker 1: just terrible and that can result and further penalties and 516 00:23:51,400 --> 00:23:54,200 Speaker 1: interest quickly. It can outweigh any sort of interest that 517 00:23:54,200 --> 00:23:56,119 Speaker 1: you would be paying to a traditional credit card. So 518 00:23:56,200 --> 00:23:58,040 Speaker 1: because of these penalties, that's why we feel that the 519 00:23:58,160 --> 00:24:00,240 Speaker 1: r S should be at the top of the list 520 00:24:00,280 --> 00:24:02,600 Speaker 1: when it comes to paying back debts. And Michael, it 521 00:24:02,600 --> 00:24:04,280 Speaker 1: sounds like you're already in touch with the I R S. 522 00:24:04,359 --> 00:24:06,720 Speaker 1: You're in communication with them, and that's great. Since your 523 00:24:06,760 --> 00:24:08,960 Speaker 1: balance is under ten thousand dollars, you should be able 524 00:24:08,960 --> 00:24:11,720 Speaker 1: to qualify for that guaranteed installment agreement, which is for 525 00:24:12,920 --> 00:24:16,199 Speaker 1: five You should choose to pay direct online so that 526 00:24:16,280 --> 00:24:18,920 Speaker 1: you don't miss the payment and that you avoid paying 527 00:24:18,920 --> 00:24:21,199 Speaker 1: those penalties and fees. It sounds like this is what 528 00:24:21,240 --> 00:24:24,000 Speaker 1: you're doing, so if so, you're going the right direction. Yeah, man, 529 00:24:24,040 --> 00:24:26,719 Speaker 1: I agree. Choosing direct pay is so important because if 530 00:24:26,760 --> 00:24:29,399 Speaker 1: you do accidentally you forget it slips your mind. You 531 00:24:29,400 --> 00:24:32,480 Speaker 1: know you are going to incur higher interest and more penalties, 532 00:24:32,520 --> 00:24:34,840 Speaker 1: and that just prolongs the amount you have to pay 533 00:24:35,000 --> 00:24:36,200 Speaker 1: and it's just not good. You don't want to be 534 00:24:36,200 --> 00:24:38,080 Speaker 1: in that position with the I R S. Let's talk 535 00:24:38,119 --> 00:24:40,760 Speaker 1: about this to Matt. There's something called an offer in compromise, 536 00:24:41,040 --> 00:24:44,240 Speaker 1: and I don't think from hearing Michael that he qualifies 537 00:24:44,280 --> 00:24:45,920 Speaker 1: for this, but it's just something worth putting out there. 538 00:24:46,160 --> 00:24:49,160 Speaker 1: If for some reason, paying this tax set off would 539 00:24:49,160 --> 00:24:51,480 Speaker 1: make it hard for you to live, like you have 540 00:24:51,840 --> 00:24:54,880 Speaker 1: catastrophic health care expenses or you don't have a job 541 00:24:55,080 --> 00:24:58,240 Speaker 1: and you're in a true position of financial hardship. Well, 542 00:24:58,280 --> 00:25:01,359 Speaker 1: you can make an offer and compromise which reduces the 543 00:25:01,440 --> 00:25:04,160 Speaker 1: debt amount via a settlement with the I R S. 544 00:25:04,280 --> 00:25:06,080 Speaker 1: And again, I don't think Michael is in this position 545 00:25:06,200 --> 00:25:08,800 Speaker 1: to take advantage of an offering, compromise it and try 546 00:25:08,840 --> 00:25:11,760 Speaker 1: to reduce his overall debt amount that he owes R S. 547 00:25:11,800 --> 00:25:14,600 Speaker 1: And he also owes only six grand. But I just 548 00:25:14,600 --> 00:25:16,199 Speaker 1: wanted to put that out there. It's an important thing 549 00:25:16,240 --> 00:25:18,639 Speaker 1: for other people who might have, you know, bigger I 550 00:25:18,760 --> 00:25:20,840 Speaker 1: R S debt issues to know. Yeah, and one other 551 00:25:20,880 --> 00:25:22,800 Speaker 1: side note to for for other folks out there, if 552 00:25:22,840 --> 00:25:25,320 Speaker 1: you can't pay your tax bill, you should still actually 553 00:25:25,720 --> 00:25:28,320 Speaker 1: file your taxes. A failure to file results and even 554 00:25:28,359 --> 00:25:31,680 Speaker 1: bigger penalties and can cause you to dig yourself into 555 00:25:31,760 --> 00:25:33,959 Speaker 1: an even bigger hole. So you might have a problem, 556 00:25:34,040 --> 00:25:35,800 Speaker 1: but don't put your head in the sand and uh 557 00:25:35,840 --> 00:25:38,679 Speaker 1: an attempt to avoid it altogether. Michael, I know that 558 00:25:38,720 --> 00:25:40,440 Speaker 1: if this was me, that I would want to get 559 00:25:40,480 --> 00:25:42,960 Speaker 1: this tax debt off my back first and then get 560 00:25:43,000 --> 00:25:46,280 Speaker 1: back to tackling those different credit cards by focusing on 561 00:25:46,320 --> 00:25:48,639 Speaker 1: the card with the lowest balance first, since that's what 562 00:25:48,720 --> 00:25:51,840 Speaker 1: you've been doing. That's, you know, what has worked for you. Again, 563 00:25:51,880 --> 00:25:53,800 Speaker 1: we love the fact that you have found a method 564 00:25:53,840 --> 00:25:55,760 Speaker 1: and a process that works for you. It's just that 565 00:25:55,840 --> 00:25:59,399 Speaker 1: the I r S doesn't qualify as a standard debtor, 566 00:25:59,480 --> 00:26:01,439 Speaker 1: right like they're not the standard credit card company. And 567 00:26:01,480 --> 00:26:04,000 Speaker 1: so in this case, essentially what we're proposing is a 568 00:26:04,160 --> 00:26:06,880 Speaker 1: modified debt snowball. I know you're not used to paying 569 00:26:07,480 --> 00:26:10,280 Speaker 1: larger debts first, because that's not how the deat snowball works. 570 00:26:10,320 --> 00:26:12,600 Speaker 1: But in this one case, knock out that six grand 571 00:26:12,640 --> 00:26:14,640 Speaker 1: oh to the I r S and then quickly get 572 00:26:14,680 --> 00:26:17,840 Speaker 1: back to paying your smallest debts and let that snowball 573 00:26:17,920 --> 00:26:19,960 Speaker 1: roll over on itself. Yeah, and you know what, Matt, 574 00:26:20,000 --> 00:26:23,000 Speaker 1: I know, sometimes when people are hyper focused on debt 575 00:26:23,040 --> 00:26:25,280 Speaker 1: payoff and then something like this can be a hurdle. 576 00:26:25,359 --> 00:26:27,160 Speaker 1: It's one of those things that they didn't factor into 577 00:26:27,200 --> 00:26:30,480 Speaker 1: their original debt snowball method and it lengthens the timeline 578 00:26:30,640 --> 00:26:33,080 Speaker 1: and that can be really hard emotionally to kind of 579 00:26:33,119 --> 00:26:35,560 Speaker 1: have that thing pop up. You're like, man, I'm doing 580 00:26:35,600 --> 00:26:38,280 Speaker 1: good and then this pops up. But Michael, like, keep 581 00:26:38,280 --> 00:26:40,760 Speaker 1: the fervor, man, because you're making it happen. You are 582 00:26:40,800 --> 00:26:43,240 Speaker 1: making progress, and you know what, this is a small hurdle. 583 00:26:43,280 --> 00:26:45,480 Speaker 1: You're gonna overcome this one, and you're gonna keep crushing 584 00:26:45,480 --> 00:26:48,200 Speaker 1: that debt snowball until you know what, it's completely gone, 585 00:26:48,200 --> 00:26:50,200 Speaker 1: it's completely eliminated. So you can do this. I hear 586 00:26:50,200 --> 00:26:51,960 Speaker 1: it in your voice that you're ready to get after 587 00:26:52,000 --> 00:26:54,680 Speaker 1: this debt and crush it as well. So true, man. 588 00:26:54,720 --> 00:26:56,520 Speaker 1: All right, We've got a couple more questions. We're gonna 589 00:26:56,560 --> 00:27:00,320 Speaker 1: talk about savings account rates, how they've been declining, and 590 00:27:00,359 --> 00:27:02,800 Speaker 1: then we're gonna get to that employee stock purchase plan. 591 00:27:02,840 --> 00:27:13,679 Speaker 1: We're gonna get to those right after the break. All right, 592 00:27:13,680 --> 00:27:15,359 Speaker 1: now we're back on the break, and it's anybody in 593 00:27:15,359 --> 00:27:18,639 Speaker 1: our Facebook group knows. I mean, there's constant dismay about 594 00:27:18,720 --> 00:27:22,000 Speaker 1: the fact that savings account rates continue to decline, and 595 00:27:22,080 --> 00:27:24,919 Speaker 1: Neil has a question about that. Hey, guys, this is 596 00:27:25,080 --> 00:27:28,600 Speaker 1: Neil calling from Los Angeles. I have some questions about 597 00:27:28,760 --> 00:27:32,960 Speaker 1: high interest savings accounts online. About a year ago, I 598 00:27:33,000 --> 00:27:36,000 Speaker 1: opened a Marcus account with Goldman Sachs at two point 599 00:27:36,080 --> 00:27:38,960 Speaker 1: to five interest, and over the last several months, that 600 00:27:39,040 --> 00:27:42,000 Speaker 1: interest rate has gone down each month to where it 601 00:27:42,080 --> 00:27:46,040 Speaker 1: is currently at one point seven. So here are my questions. 602 00:27:46,680 --> 00:27:50,720 Speaker 1: Number one, why is this happening? Number two, if or 603 00:27:50,760 --> 00:27:54,240 Speaker 1: when can I expect rates to increase again? And three 604 00:27:54,480 --> 00:27:56,320 Speaker 1: is there a better place I can be starting my 605 00:27:56,440 --> 00:27:59,040 Speaker 1: cash right now? Keeping in mind that I need to 606 00:27:59,119 --> 00:28:01,720 Speaker 1: keep it pretty liquid inaccessible because I'll be returning to 607 00:28:01,760 --> 00:28:04,000 Speaker 1: school in September and I'm going to be partially living 608 00:28:04,000 --> 00:28:07,600 Speaker 1: off this money. Thank you, guys, I appreciate your time. Man. 609 00:28:07,640 --> 00:28:09,960 Speaker 1: Great question, Neil, thanks so much for leaving it. And 610 00:28:10,160 --> 00:28:11,960 Speaker 1: it's a question on like I said, a lot of 611 00:28:12,000 --> 00:28:14,840 Speaker 1: people's minds, and you mentioned Marcus Man. That's a great 612 00:28:14,880 --> 00:28:18,439 Speaker 1: savings account. They're offering rates that are competitive with the 613 00:28:18,600 --> 00:28:21,240 Speaker 1: best online savings accounts out there. These rates are just 614 00:28:21,280 --> 00:28:23,560 Speaker 1: in constant flux, so from day to day they might 615 00:28:23,560 --> 00:28:26,520 Speaker 1: be like top five, top ten, but they're offering really 616 00:28:26,520 --> 00:28:29,000 Speaker 1: really competitive rates. So Marcus is solid. Yeah, really good 617 00:28:29,000 --> 00:28:31,760 Speaker 1: online bank. And I remember, Matt, when you could get 618 00:28:31,800 --> 00:28:34,040 Speaker 1: a really good savings account back in my early days 619 00:28:34,040 --> 00:28:36,320 Speaker 1: of savings. I remember having an account that paid me 620 00:28:36,320 --> 00:28:38,440 Speaker 1: like five and a half percent. That was pretty sweet. 621 00:28:38,680 --> 00:28:40,480 Speaker 1: That's definitely not the case right now, right, Yeah, I 622 00:28:40,520 --> 00:28:42,640 Speaker 1: remember getting close to that with my I n G 623 00:28:42,800 --> 00:28:46,800 Speaker 1: Direct Orange Savings, the Electric Orange. Yeah, I think that 624 00:28:46,880 --> 00:28:49,520 Speaker 1: was the start of Capital one three sixty yea. They 625 00:28:49,560 --> 00:28:51,960 Speaker 1: bought I n G and because it was such a 626 00:28:51,960 --> 00:28:53,840 Speaker 1: good product, and they've done a good job of keeping 627 00:28:53,840 --> 00:28:55,680 Speaker 1: it pretty similar. All right, let's get to the question, 628 00:28:55,720 --> 00:28:58,640 Speaker 1: and Neil, I love how organized you were about of 629 00:28:58,680 --> 00:29:01,320 Speaker 1: what you're asking here. So the first question and why, right, 630 00:29:01,320 --> 00:29:03,600 Speaker 1: why is this happening? And this is happening because the 631 00:29:03,600 --> 00:29:06,920 Speaker 1: Federal Reserve they've been lowering interest rates. They've done that 632 00:29:06,960 --> 00:29:09,400 Speaker 1: a few times now over the past year. And that 633 00:29:09,520 --> 00:29:12,400 Speaker 1: act basically stimulates the economy by making it easier for 634 00:29:12,400 --> 00:29:14,440 Speaker 1: folks to borrow money. Right when there's cheap money that 635 00:29:14,480 --> 00:29:17,600 Speaker 1: you can borrow, like that equals more borrowing, which means 636 00:29:17,960 --> 00:29:19,960 Speaker 1: basically a kick in the pants to the economy. But 637 00:29:20,040 --> 00:29:23,160 Speaker 1: what this does mean is that savers are getting hammered 638 00:29:23,160 --> 00:29:27,880 Speaker 1: basically because rates are dropping while borrowers are getting cheap 639 00:29:28,120 --> 00:29:30,840 Speaker 1: long term money. Basically, Yeah, that those mortgage rates they're 640 00:29:30,880 --> 00:29:34,040 Speaker 1: super low, super low, so we're the savings rates. Yeah, 641 00:29:34,120 --> 00:29:36,880 Speaker 1: so it is a both end. The other thing that 642 00:29:36,920 --> 00:29:40,520 Speaker 1: you asked, Neil, was well, when or whin or low 643 00:29:40,520 --> 00:29:42,200 Speaker 1: interest rates gonna change? When are we're gonna be able 644 00:29:42,240 --> 00:29:44,760 Speaker 1: to see higher rates on savings accounts? And here's what 645 00:29:44,800 --> 00:29:47,479 Speaker 1: we think. We're definitely in a low interest rate environment currently, 646 00:29:47,920 --> 00:29:49,720 Speaker 1: but it's not going to stay that way forever. Things 647 00:29:49,760 --> 00:29:51,959 Speaker 1: are going to change. Interest rates will go up, but 648 00:29:52,000 --> 00:29:55,160 Speaker 1: it's impossible to predict when that change is going to occur. 649 00:29:55,520 --> 00:29:57,440 Speaker 1: Who knows what the Fed is going to do and 650 00:29:57,480 --> 00:30:01,880 Speaker 1: their actions have so much to do with savings accounts 651 00:30:01,920 --> 00:30:04,240 Speaker 1: interest rates that we see in the market. And it's 652 00:30:04,240 --> 00:30:08,280 Speaker 1: interesting because I think a lot of experts thought that 653 00:30:08,440 --> 00:30:10,560 Speaker 1: interest rates on saving these accounts would be higher right now. 654 00:30:10,560 --> 00:30:12,880 Speaker 1: So what mortgage interest rates like? We would just see 655 00:30:13,040 --> 00:30:15,560 Speaker 1: as the economy did well, we would see rates continue 656 00:30:15,560 --> 00:30:18,120 Speaker 1: to climb into kind of a more normal sphere, because, 657 00:30:18,200 --> 00:30:21,640 Speaker 1: for instance, mortgage rates are still hovering near all time lows. 658 00:30:21,680 --> 00:30:24,920 Speaker 1: But that hasn't been the case despite a solid economy 659 00:30:25,120 --> 00:30:28,160 Speaker 1: and despite record low unemployment numbers. I mean, they've continued 660 00:30:28,200 --> 00:30:31,160 Speaker 1: to try to stimulate the economy through low interest rates, 661 00:30:31,200 --> 00:30:34,440 Speaker 1: although that seems to be subsiding um and it's anybody's 662 00:30:34,440 --> 00:30:36,200 Speaker 1: guests as to how long this will take. But I 663 00:30:36,200 --> 00:30:38,640 Speaker 1: wouldn't bank on seeing you know, that five and a 664 00:30:38,640 --> 00:30:40,680 Speaker 1: half percent interest rate that Matt and I talked about 665 00:30:40,960 --> 00:30:43,240 Speaker 1: anytime in the next year or two, but hopefully in 666 00:30:43,240 --> 00:30:45,040 Speaker 1: our lifetime at least, Right, I would love to see 667 00:30:45,080 --> 00:30:47,880 Speaker 1: just standards savings rates get back up to five percent. That. Oh, 668 00:30:47,920 --> 00:30:50,520 Speaker 1: I definitely see that happening weeks. Yeah, I mean, these things, 669 00:30:50,560 --> 00:30:53,880 Speaker 1: these economic cycles, they're their cyclical and so we will 670 00:30:53,920 --> 00:30:56,760 Speaker 1: begin to see higher rates for savers, will see higher 671 00:30:56,840 --> 00:30:59,760 Speaker 1: rates for barbers will have different economic circumstances to deal with. 672 00:31:00,160 --> 00:31:02,160 Speaker 1: And you know what, there's kind of positives and negatives 673 00:31:02,160 --> 00:31:04,760 Speaker 1: to to each economic cycle. We go through it ebbs 674 00:31:04,800 --> 00:31:07,160 Speaker 1: and it flows man uh And then Neil, the last 675 00:31:07,160 --> 00:31:09,440 Speaker 1: part of your question, you're asking basically where else you 676 00:31:09,480 --> 00:31:13,680 Speaker 1: could go to basically earn more but to still have 677 00:31:13,720 --> 00:31:15,400 Speaker 1: access to your funds for your money to be a 678 00:31:15,480 --> 00:31:17,680 Speaker 1: liquid In fact, is there is not a better place 679 00:31:17,720 --> 00:31:20,080 Speaker 1: to go, Like Marcus is pretty solid. But what you 680 00:31:20,120 --> 00:31:22,520 Speaker 1: can do is you can consider snagging a sign up 681 00:31:22,560 --> 00:31:26,080 Speaker 1: bonus that can make your effective interest rate higher. Right 682 00:31:26,120 --> 00:31:28,560 Speaker 1: like c I T discover they continue to have these 683 00:31:28,640 --> 00:31:30,960 Speaker 1: nice little sign up bonuses that sweeten the pot in 684 00:31:31,000 --> 00:31:34,200 Speaker 1: addition to their competitive rates. C I t uh. They 685 00:31:34,240 --> 00:31:36,120 Speaker 1: currently have what is it right now, like a three 686 00:31:36,680 --> 00:31:38,640 Speaker 1: bonus droll. Yeah, if you've got fifty grand to put 687 00:31:38,640 --> 00:31:39,960 Speaker 1: in there and meal, I'm not sure how much money 688 00:31:39,960 --> 00:31:41,600 Speaker 1: we're talking about, but if you do have that much, 689 00:31:41,760 --> 00:31:43,560 Speaker 1: you can get a three bonus. And if you've got 690 00:31:44,360 --> 00:31:45,640 Speaker 1: for putting your money in there, just for putting your 691 00:31:45,680 --> 00:31:47,080 Speaker 1: money in there, and I think having it there for 692 00:31:47,160 --> 00:31:49,840 Speaker 1: three months. And actually there was a discussion Matt recently 693 00:31:49,840 --> 00:31:52,040 Speaker 1: on the Facebook group about kind of the hoops that 694 00:31:52,080 --> 00:31:53,680 Speaker 1: you have to jump through in order to get some 695 00:31:53,720 --> 00:31:56,239 Speaker 1: of these savings account bonuses. I kind of weighed in 696 00:31:56,280 --> 00:31:58,680 Speaker 1: on on the on the thread and I said, I'm 697 00:31:58,720 --> 00:32:02,000 Speaker 1: just only willing to take advantage of a savings account 698 00:32:02,000 --> 00:32:04,600 Speaker 1: bonus if it doesn't involve all the additional hoops you 699 00:32:04,640 --> 00:32:07,200 Speaker 1: have to jump through, like modified spending all that kind 700 00:32:07,200 --> 00:32:09,880 Speaker 1: of crap exactly, or they want you to change your 701 00:32:09,880 --> 00:32:12,160 Speaker 1: direct deposit. So I'm not willing to do the hoops, 702 00:32:12,320 --> 00:32:14,400 Speaker 1: but if it's super simple and straightforward and I can 703 00:32:14,440 --> 00:32:16,960 Speaker 1: make a few hundred bucks for moving my funds over 704 00:32:17,000 --> 00:32:18,920 Speaker 1: to another bank for a short period of time, and 705 00:32:18,960 --> 00:32:20,600 Speaker 1: that's kind of what Discover and c I T are doing, 706 00:32:20,600 --> 00:32:22,080 Speaker 1: and so we will post a link to those in 707 00:32:22,080 --> 00:32:23,800 Speaker 1: our show notes. But if you've got a good sum 708 00:32:23,840 --> 00:32:25,840 Speaker 1: of money and you want to earn more than you're 709 00:32:25,880 --> 00:32:28,960 Speaker 1: currently earning, the online banks, they're getting so close into 710 00:32:28,960 --> 00:32:31,680 Speaker 1: what they're offering. The percentage difference in interest rates that 711 00:32:31,720 --> 00:32:33,920 Speaker 1: they're paying is so small. But the way that you 712 00:32:33,960 --> 00:32:36,280 Speaker 1: can have kind of an outsized effect is to open 713 00:32:36,320 --> 00:32:39,400 Speaker 1: a new one with a bank that's offering a sweet bonus. Yeah, totally, 714 00:32:39,400 --> 00:32:41,160 Speaker 1: Like you don't want to change banks just to get 715 00:32:41,200 --> 00:32:43,760 Speaker 1: a tenth of a percent higher interest rate, Like that's 716 00:32:43,800 --> 00:32:45,560 Speaker 1: not going to move the needle at all, but the 717 00:32:45,600 --> 00:32:48,400 Speaker 1: sign up bonus is super solid. And Neil also keep 718 00:32:48,400 --> 00:32:50,520 Speaker 1: in mind tooth that even though you've dropped maybe from 719 00:32:50,640 --> 00:32:52,960 Speaker 1: one point eight five down to one point seven, perhaps 720 00:32:53,480 --> 00:32:55,880 Speaker 1: that is still like a hundred times better than a 721 00:32:55,920 --> 00:32:58,120 Speaker 1: traditional brick and mortar savings account. Sure, and that's not 722 00:32:58,160 --> 00:33:00,719 Speaker 1: even high perpole. Literally if you do the math, it's 723 00:33:00,720 --> 00:33:03,720 Speaker 1: a hundred times better probably within that range than the 724 00:33:03,840 --> 00:33:06,440 Speaker 1: point zero two percent that you're going to get at 725 00:33:06,480 --> 00:33:08,840 Speaker 1: some of the big name banks. And so yeah, like 726 00:33:08,880 --> 00:33:12,160 Speaker 1: it's dropping, but it is still substantially better than the 727 00:33:12,280 --> 00:33:14,840 Speaker 1: traditional offerings, no doubt. All right, Matt, let's get into 728 00:33:14,880 --> 00:33:17,560 Speaker 1: our last question, our first ever full ray into talking 729 00:33:17,600 --> 00:33:20,760 Speaker 1: about employee stock purchase plans. Hey, guys, this is Top 730 00:33:20,800 --> 00:33:23,760 Speaker 1: from Atlanta and I recently started a new job. My 731 00:33:23,880 --> 00:33:27,880 Speaker 1: question is about employee stock purchase plans. With my new job, 732 00:33:27,920 --> 00:33:30,320 Speaker 1: I have the option to participate in one of these plans, 733 00:33:30,640 --> 00:33:32,280 Speaker 1: and I was wondering what do you guys think of 734 00:33:32,320 --> 00:33:34,920 Speaker 1: these plans in general? And where does something like an 735 00:33:34,920 --> 00:33:38,480 Speaker 1: EESPP fall in the hierarchy of investing for you, you know, 736 00:33:38,520 --> 00:33:40,840 Speaker 1: after recently listening to your episode on h s A 737 00:33:40,960 --> 00:33:43,920 Speaker 1: s clearly four O one K match and hs A 738 00:33:44,000 --> 00:33:47,360 Speaker 1: contributions should be at the top. But where does something 739 00:33:47,360 --> 00:33:50,160 Speaker 1: like in the SPP come into play. I love what 740 00:33:50,200 --> 00:33:51,960 Speaker 1: you guys do for the community and hope to run 741 00:33:51,960 --> 00:33:54,880 Speaker 1: into y'all at a local brewery sometime. Take care Tid. 742 00:33:54,920 --> 00:33:56,360 Speaker 1: If only this was a phone call and we could 743 00:33:56,360 --> 00:33:59,080 Speaker 1: actually hear what some of your favorite local craft breweries are, 744 00:33:59,120 --> 00:34:01,680 Speaker 1: that would be maybe, right. I guess that's not podcasting though, 745 00:34:01,680 --> 00:34:03,760 Speaker 1: that's a that's a call in show. Yeah, that's the 746 00:34:03,760 --> 00:34:05,600 Speaker 1: old school medium. And by the way, Matt, we just 747 00:34:05,640 --> 00:34:08,400 Speaker 1: recently published an article on our site about our favorite 748 00:34:08,440 --> 00:34:11,640 Speaker 1: breweries and bars in Atlanta. So for folks that live 749 00:34:11,680 --> 00:34:13,759 Speaker 1: here or whether they're visiting, those are the spots that 750 00:34:13,800 --> 00:34:15,960 Speaker 1: were likely to to hit up most often. Man, what 751 00:34:15,960 --> 00:34:18,399 Speaker 1: could be better? We're huge fans of Atlanta, We're huge 752 00:34:18,400 --> 00:34:20,879 Speaker 1: fans of craft beer. So you combine those two, of course, 753 00:34:20,880 --> 00:34:22,560 Speaker 1: this is gonna be something we talk about. Just throw 754 00:34:22,640 --> 00:34:24,720 Speaker 1: sprinkling a little bit of money and that's our podcast. 755 00:34:25,520 --> 00:34:27,360 Speaker 1: Let's go get the Todds question. He's talking about the 756 00:34:27,360 --> 00:34:29,359 Speaker 1: e s p P. And again that stands for an 757 00:34:29,360 --> 00:34:32,040 Speaker 1: employee stock purchase plan. Uh So, for folks who don't 758 00:34:32,040 --> 00:34:34,120 Speaker 1: know what it, what an e s p P is 759 00:34:34,480 --> 00:34:37,960 Speaker 1: Some employers they offer an employee benefits and you can 760 00:34:37,960 --> 00:34:42,040 Speaker 1: buy your company's stock at a discount, sometimes up to off, 761 00:34:42,080 --> 00:34:45,120 Speaker 1: which is that's a great deal. E s pps can 762 00:34:45,200 --> 00:34:47,720 Speaker 1: offer some other interesting benefits as well, like these different 763 00:34:47,719 --> 00:34:50,200 Speaker 1: look back provisions that allow you to buy the stock 764 00:34:50,440 --> 00:34:53,560 Speaker 1: at its lowest recent share price. And so it's almost 765 00:34:53,600 --> 00:34:55,680 Speaker 1: like a double discount where not only are you getting 766 00:34:55,680 --> 00:34:58,680 Speaker 1: it on sale regardless of the price, the actual price 767 00:34:58,680 --> 00:35:00,479 Speaker 1: of it fluctuates and you get to how to tag 768 00:35:00,520 --> 00:35:02,960 Speaker 1: it at the low point. So that is just so sweet. 769 00:35:03,320 --> 00:35:05,279 Speaker 1: You said double discount made me think of that State 770 00:35:05,320 --> 00:35:07,799 Speaker 1: Farm commercial that discount double check. It's kind of got 771 00:35:07,840 --> 00:35:11,120 Speaker 1: that thing going on, right. You got this double discount 772 00:35:11,200 --> 00:35:14,040 Speaker 1: possibility with the es p P by having this ability 773 00:35:14,080 --> 00:35:15,919 Speaker 1: to purchase at a really low share price and also 774 00:35:16,000 --> 00:35:20,080 Speaker 1: just getting that often discount. That's pretty sweet. Ye, It's like, 775 00:35:20,120 --> 00:35:22,120 Speaker 1: it's a great deal, dude. It makes me. It makes 776 00:35:22,120 --> 00:35:24,239 Speaker 1: me think of your think about the commercial. I'm thinking 777 00:35:24,239 --> 00:35:26,400 Speaker 1: about this corn dog place that used to be in 778 00:35:26,440 --> 00:35:29,360 Speaker 1: Atlanta and they would double fry their corn dogs like 779 00:35:29,600 --> 00:35:33,520 Speaker 1: twice fried, twice as nice, twice as good man. I'm 780 00:35:33,560 --> 00:35:35,480 Speaker 1: with you on that are but we should also talk 781 00:35:35,520 --> 00:35:39,160 Speaker 1: about the risks that ees PPS post, and the biggest 782 00:35:39,160 --> 00:35:41,759 Speaker 1: issue that we have with ees PPS is that it 783 00:35:41,800 --> 00:35:44,880 Speaker 1: can cause you to focus your investing strategy around buying 784 00:35:44,880 --> 00:35:47,720 Speaker 1: company stock, and ultimately, if you're doing that, you're putting 785 00:35:47,719 --> 00:35:50,839 Speaker 1: too many eggs into one basket. Your income already comes 786 00:35:50,840 --> 00:35:53,719 Speaker 1: from your employer. Should your retirement assets be writing on 787 00:35:53,719 --> 00:35:57,759 Speaker 1: employer performance too? Probably not. So. Basically, what you want 788 00:35:57,760 --> 00:36:00,600 Speaker 1: to avoid is buying and holding your employ your stock 789 00:36:00,880 --> 00:36:04,279 Speaker 1: for the long term. That's a recipe for too much risk. Yeah. Well, 790 00:36:04,600 --> 00:36:06,520 Speaker 1: you know, we're gonna talk about how to actually use 791 00:36:06,600 --> 00:36:08,920 Speaker 1: an e SPP. But you know, you mentioned risk, and 792 00:36:09,000 --> 00:36:12,000 Speaker 1: you mentioned how our income is tied to our employer. Obviously, Uh, 793 00:36:12,200 --> 00:36:14,319 Speaker 1: A lot of people are in way too invested in 794 00:36:14,360 --> 00:36:16,520 Speaker 1: the companies. You know who they work for, and they 795 00:36:16,560 --> 00:36:19,000 Speaker 1: owned stock in that company. And if you own too much, 796 00:36:19,160 --> 00:36:21,040 Speaker 1: not a good idea, Yeah, exactly. But even on top 797 00:36:21,080 --> 00:36:23,000 Speaker 1: of that as well, for a lot of smaller towns 798 00:36:23,000 --> 00:36:25,520 Speaker 1: where there's a large company there, a company like that 799 00:36:25,560 --> 00:36:27,959 Speaker 1: can have a huge impact on the local real estate. 800 00:36:28,040 --> 00:36:29,880 Speaker 1: And so for a lot of people, they have a 801 00:36:29,880 --> 00:36:32,120 Speaker 1: lot of their their money, a lot of their assets 802 00:36:32,120 --> 00:36:34,560 Speaker 1: tied up in their home. And so man, when so 803 00:36:34,680 --> 00:36:36,439 Speaker 1: much is writing on the performance of that company, because 804 00:36:36,480 --> 00:36:38,640 Speaker 1: guess what what if that factory closes or that you know, 805 00:36:38,680 --> 00:36:41,399 Speaker 1: that headquarter decides to relocate and go somewhere else, Well, 806 00:36:41,440 --> 00:36:43,560 Speaker 1: all of a sudden, you know, your income is dropping. 807 00:36:43,920 --> 00:36:46,640 Speaker 1: Maybe they're not performing as well, so your portfolio is dropping. 808 00:36:46,719 --> 00:36:48,359 Speaker 1: But guess what, the you know, the cherry on top 809 00:36:48,480 --> 00:36:51,240 Speaker 1: your home is now worthless because everybody is leaving town. 810 00:36:51,480 --> 00:36:53,600 Speaker 1: So you know, tying too much of your assets to 811 00:36:53,640 --> 00:36:57,200 Speaker 1: a single company like that is the opposite of diversification. Yeah. 812 00:36:57,200 --> 00:36:58,439 Speaker 1: I think that's a good point. I think it's something 813 00:36:58,440 --> 00:37:00,560 Speaker 1: that people don't think about much that, depending on where 814 00:37:00,600 --> 00:37:03,520 Speaker 1: you live, your company might have a big impact on 815 00:37:03,719 --> 00:37:06,600 Speaker 1: the overall local economy. You may think the perfect example 816 00:37:06,840 --> 00:37:08,919 Speaker 1: is a factory closing in a small town and most 817 00:37:08,920 --> 00:37:11,920 Speaker 1: of those jobs are completely tied to that factory, and 818 00:37:11,960 --> 00:37:14,960 Speaker 1: the whole local economy revolves around that one business. And 819 00:37:14,960 --> 00:37:17,160 Speaker 1: so yeah, if that business shutters its stores, or if 820 00:37:17,160 --> 00:37:20,080 Speaker 1: that business moves overseas, you're talking about this potential for 821 00:37:20,160 --> 00:37:23,239 Speaker 1: extreme financial trouble to you and your family based on 822 00:37:23,440 --> 00:37:25,320 Speaker 1: just that one employer. And that's just one reason, But 823 00:37:25,360 --> 00:37:27,319 Speaker 1: there are other reasons too that you don't want to 824 00:37:27,320 --> 00:37:31,120 Speaker 1: have too much of your financial resources weighed so heavily 825 00:37:31,239 --> 00:37:34,120 Speaker 1: towards the performance of your employer. Yeah, and you know, Todd, 826 00:37:34,200 --> 00:37:36,680 Speaker 1: he's here in Atlanta, like we are. Atlanta is a 827 00:37:36,680 --> 00:37:39,120 Speaker 1: pretty large city, so it's less likely that that's the 828 00:37:39,120 --> 00:37:40,879 Speaker 1: case for him, But for everyone else out there who 829 00:37:40,920 --> 00:37:42,880 Speaker 1: is listening and they do have that as an option, 830 00:37:42,960 --> 00:37:45,239 Speaker 1: definitely keep that in mind if you do choose to 831 00:37:45,280 --> 00:37:49,080 Speaker 1: participate it is important to sell that employer stock soon 832 00:37:49,239 --> 00:37:51,360 Speaker 1: after you're eligible. Joe, you just mentioned how you know, 833 00:37:51,400 --> 00:37:53,680 Speaker 1: we don't want to buy and hold for the long term. 834 00:37:53,920 --> 00:37:55,239 Speaker 1: You want to do the opposite. You want to sell 835 00:37:55,280 --> 00:37:57,839 Speaker 1: as soon as you can. Some folks recommend holding onto 836 00:37:57,880 --> 00:38:00,520 Speaker 1: that stock even longer, you know, for a preferred treatment, 837 00:38:00,719 --> 00:38:03,480 Speaker 1: but that put you at unnecessary risk. If the discount 838 00:38:03,600 --> 00:38:06,400 Speaker 1: is solid, right, if it's close to maybe, and you 839 00:38:06,480 --> 00:38:08,960 Speaker 1: can be a discipline seller, then it makes sense to 840 00:38:09,040 --> 00:38:12,160 Speaker 1: take that discount and sell your purchases when you're allowed. 841 00:38:12,520 --> 00:38:14,400 Speaker 1: Then you're avoiding most of that risk that comes with 842 00:38:14,400 --> 00:38:17,279 Speaker 1: holding loads of company stock. Yeah. Man, I think a 843 00:38:17,400 --> 00:38:20,080 Speaker 1: question that might arise in someone's mind who hasn't really 844 00:38:20,400 --> 00:38:21,880 Speaker 1: heard of the s p p s or they just 845 00:38:21,920 --> 00:38:24,480 Speaker 1: know very little they haven't heard much about them, is well, 846 00:38:24,560 --> 00:38:26,600 Speaker 1: that kind of sounds like working the system. You're buying 847 00:38:26,680 --> 00:38:29,080 Speaker 1: your company stock at a discount, and then you're selling 848 00:38:29,080 --> 00:38:31,200 Speaker 1: it as soon as possible. Well, isn't that kind of 849 00:38:31,200 --> 00:38:33,719 Speaker 1: messed up? Well not really, because an s p P 850 00:38:33,920 --> 00:38:37,719 Speaker 1: is a recognized benefit, and there are caps for employees 851 00:38:37,760 --> 00:38:40,040 Speaker 1: on how much they can take advantage of this benefit. 852 00:38:40,400 --> 00:38:44,360 Speaker 1: So the the I R S caps the limit at dollars. Overall, 853 00:38:44,480 --> 00:38:46,400 Speaker 1: that's the most amount of money that you're able to 854 00:38:46,520 --> 00:38:49,160 Speaker 1: use to buy employer's stock with an e s PP 855 00:38:49,640 --> 00:38:52,880 Speaker 1: and most employers have a cap as well of your salary. 856 00:38:53,080 --> 00:38:55,160 Speaker 1: So let's say you make fifty grande a year, typically 857 00:38:55,200 --> 00:38:57,200 Speaker 1: the most amount of company stock you can purchase is 858 00:38:58,680 --> 00:39:02,120 Speaker 1: But this is another great benefit that some companies offer. 859 00:39:02,440 --> 00:39:04,000 Speaker 1: And if you use it well and you're not putting 860 00:39:04,000 --> 00:39:07,160 Speaker 1: yourself at undue risk, well it's not gaming the system. 861 00:39:07,400 --> 00:39:09,800 Speaker 1: What it is is it's taking advantage of an employer 862 00:39:09,880 --> 00:39:14,319 Speaker 1: benefit and using it to maximum effectiveness for your financial life. 863 00:39:14,640 --> 00:39:16,760 Speaker 1: And the lastly, tid you're asking what should the hierarchy 864 00:39:16,800 --> 00:39:18,600 Speaker 1: be like, what should come first? And if you have 865 00:39:18,640 --> 00:39:21,560 Speaker 1: the money to do all other different types of retirement investing, 866 00:39:21,680 --> 00:39:23,440 Speaker 1: then do them all, right, And E s P P 867 00:39:23,640 --> 00:39:25,960 Speaker 1: is a great benefit and one that you can use 868 00:39:26,040 --> 00:39:28,759 Speaker 1: effectively to build wealth. But do make sure that you're 869 00:39:28,800 --> 00:39:31,200 Speaker 1: taking a balanced approach. You don't want to get too lopsided. 870 00:39:31,400 --> 00:39:34,240 Speaker 1: Obviously a four one K match is of the highest importance. 871 00:39:34,360 --> 00:39:36,800 Speaker 1: Hs A s are a great second option if they're available, 872 00:39:36,800 --> 00:39:39,000 Speaker 1: just like you mentioned, but then after that consider an 873 00:39:39,239 --> 00:39:41,160 Speaker 1: es P P I think that's a great spot where 874 00:39:41,160 --> 00:39:43,840 Speaker 1: they could slot into your retirement savings. Yeah. Man, I 875 00:39:44,120 --> 00:39:47,400 Speaker 1: think the more money you have overall that you can invest, 876 00:39:47,840 --> 00:39:50,640 Speaker 1: the more likely you should be taking advantage of investing 877 00:39:50,680 --> 00:39:53,520 Speaker 1: in your ESPP. I'm a fan of the all of 878 00:39:53,560 --> 00:39:56,520 Speaker 1: the above approach choose and D and saying you know what, 879 00:39:56,520 --> 00:39:58,600 Speaker 1: I'm gonna put money in all these things in my 880 00:39:58,800 --> 00:40:00,640 Speaker 1: four one K up to the mat the h s 881 00:40:00,719 --> 00:40:02,680 Speaker 1: A a good bit in there, and then also taking 882 00:40:02,719 --> 00:40:05,880 Speaker 1: advantage of the employee stock Purchase Plan Option D that 883 00:40:05,920 --> 00:40:09,440 Speaker 1: was Joel's default multiple choice. I did so poorly in school, buddy, 884 00:40:10,120 --> 00:40:12,719 Speaker 1: And and yeah, man, I think really, if you are 885 00:40:12,840 --> 00:40:15,360 Speaker 1: able to prioritize the four O one K and the 886 00:40:15,480 --> 00:40:17,680 Speaker 1: h s A first, and you're able to put a 887 00:40:17,680 --> 00:40:20,080 Speaker 1: good bit of money in there, well, then that lowers 888 00:40:20,080 --> 00:40:23,200 Speaker 1: your risk level too, because you're more widely diversified. You're 889 00:40:23,239 --> 00:40:26,600 Speaker 1: not putting all of your eggs in that employer's stock basket. 890 00:40:26,760 --> 00:40:28,960 Speaker 1: And we would say, especially if you're able to get 891 00:40:28,960 --> 00:40:31,840 Speaker 1: the really sweet discount, if your employer is offering that 892 00:40:32,000 --> 00:40:36,960 Speaker 1: super generous discount of something like on your purchases and 893 00:40:37,040 --> 00:40:39,960 Speaker 1: todd you're able to be disciplined in selling those shares 894 00:40:40,480 --> 00:40:42,520 Speaker 1: once you're first able to. I think it's a no 895 00:40:42,600 --> 00:40:45,040 Speaker 1: brainer to take advantage of your e s p P, 896 00:40:45,160 --> 00:40:47,680 Speaker 1: at least in part. And again, what we're talking about here, 897 00:40:47,800 --> 00:40:49,880 Speaker 1: like the plan and the approach that we take with 898 00:40:49,960 --> 00:40:53,120 Speaker 1: the s p P, is that you're utilizing and making 899 00:40:53,120 --> 00:40:56,360 Speaker 1: money off of the discount structure of you know, scoring 900 00:40:56,360 --> 00:40:58,400 Speaker 1: an ESPP. You're not making money by holding onto the 901 00:40:58,400 --> 00:41:01,160 Speaker 1: stock and watching the you know, you're Coca Cola's dot sore. 902 00:41:01,480 --> 00:41:03,560 Speaker 1: You know, if if that's the case, that might happen, 903 00:41:03,640 --> 00:41:06,560 Speaker 1: but it also may not happen. But what's guaranteed is 904 00:41:06,600 --> 00:41:08,920 Speaker 1: that you know that you are getting that discount right now. 905 00:41:09,080 --> 00:41:10,480 Speaker 1: And that's what we're focusing on. Yeah, and if you 906 00:41:10,480 --> 00:41:13,280 Speaker 1: tell him quickly, you're locking in the discount, making that spread. 907 00:41:13,360 --> 00:41:15,200 Speaker 1: And then the long term money that you have invested 908 00:41:15,239 --> 00:41:18,719 Speaker 1: for retirement is widely diversified, way less risks right in 909 00:41:18,800 --> 00:41:21,719 Speaker 1: index funds, in et f s that offer way less 910 00:41:21,800 --> 00:41:24,400 Speaker 1: risk because they're invested in hundreds and hundreds of companies 911 00:41:24,400 --> 00:41:26,799 Speaker 1: as opposed to just one exactly. You know, I mentioned 912 00:41:26,840 --> 00:41:28,440 Speaker 1: Coca Cola, but they are here in Atlanta, And I 913 00:41:28,440 --> 00:41:29,920 Speaker 1: wonder if he does work for coke. It was a 914 00:41:29,920 --> 00:41:31,440 Speaker 1: real possibility of that. I'd let us know, if you 915 00:41:31,480 --> 00:41:33,320 Speaker 1: work for coke, what if coke comes out with Coke 916 00:41:33,560 --> 00:41:37,200 Speaker 1: Clear like Pepsi did back in the day. Oh so, seriously, 917 00:41:37,200 --> 00:41:39,439 Speaker 1: my neighbor, that's when they're that's when the stock's gonna 918 00:41:39,480 --> 00:41:41,760 Speaker 1: tank and that ESPP is not going to be so pretty. 919 00:41:41,960 --> 00:41:43,840 Speaker 1: So my neighbor across the street he worked for Pepsi 920 00:41:43,920 --> 00:41:45,920 Speaker 1: growing up, and I remember getting one of the first 921 00:41:46,200 --> 00:41:49,040 Speaker 1: bottles of Pepsi Clear and I was like, this is amazing. Yeah, 922 00:41:49,080 --> 00:41:51,360 Speaker 1: it was. It was the soda of the future. It 923 00:41:51,480 --> 00:41:55,080 Speaker 1: didn't last long, but it was cool clear indepen dots. 924 00:41:55,120 --> 00:41:57,160 Speaker 1: As a small child, You're like, I've ever seen soda 925 00:41:57,160 --> 00:42:00,680 Speaker 1: that's clear? Yeah. One of my favorites of variations on 926 00:42:00,760 --> 00:42:03,920 Speaker 1: coke was Coke Black with a K. Was that a 927 00:42:03,960 --> 00:42:06,880 Speaker 1: coffee infused I never even had it? Was it good? Yes? 928 00:42:07,000 --> 00:42:08,759 Speaker 1: It was good. I don't know how I missed it, dude. 929 00:42:08,760 --> 00:42:10,680 Speaker 1: That was that was back in like oh six. Maybe 930 00:42:10,840 --> 00:42:12,480 Speaker 1: I really liked it. They need to rerelease that because 931 00:42:12,520 --> 00:42:13,960 Speaker 1: I would totally drink it. Well I'm not. No, we're 932 00:42:14,040 --> 00:42:17,320 Speaker 1: drinking a beer currently that has coffee notes and fuse 933 00:42:17,360 --> 00:42:20,080 Speaker 1: in it. We are drinking Mexican Chocolate Yetti, which is 934 00:42:20,080 --> 00:42:24,000 Speaker 1: an Imperial stouts by Great Divide. Joel, you want to 935 00:42:24,040 --> 00:42:26,400 Speaker 1: share your thoughts on it? Yeah, I love the Yetti 936 00:42:26,440 --> 00:42:29,400 Speaker 1: beers and they've got all these variants. Now, Mexican Chocolate 937 00:42:29,480 --> 00:42:32,560 Speaker 1: Yettie did not disappoint. It had these really subtle Mexican 938 00:42:32,560 --> 00:42:34,560 Speaker 1: spices going on in the background. Some of them stuck 939 00:42:34,560 --> 00:42:36,400 Speaker 1: out more than than others. I would say there was 940 00:42:36,440 --> 00:42:39,520 Speaker 1: a good bit of cinnamon, a touch of chili pepper. Ultimately, Matt, 941 00:42:39,640 --> 00:42:42,840 Speaker 1: I wish we were podcasting and drinking this beer around 942 00:42:42,840 --> 00:42:44,960 Speaker 1: a camp fire outside because it feels like the perfect 943 00:42:45,000 --> 00:42:47,960 Speaker 1: beer for camp fire sipping. This is really tasty. I 944 00:42:48,040 --> 00:42:49,880 Speaker 1: really enjoyed it. Well, I'm not not. They sent us 945 00:42:49,880 --> 00:42:51,120 Speaker 1: a bunch of beers and and one of the other 946 00:42:51,120 --> 00:42:52,879 Speaker 1: ones we're gonna have by them is I think it's 947 00:42:52,880 --> 00:42:55,640 Speaker 1: a s'more as Yettie. So, speaking of sitting around the campfire, 948 00:42:56,120 --> 00:42:58,920 Speaker 1: I think he already burned that line. So you're not 949 00:42:58,960 --> 00:43:00,719 Speaker 1: gonna be able to use that next time we have that. Well, 950 00:43:00,800 --> 00:43:02,840 Speaker 1: maybe we'll just actually have to to do that in 951 00:43:02,880 --> 00:43:04,759 Speaker 1: podcast outside. How do you feel about that? I'm fine 952 00:43:04,760 --> 00:43:06,440 Speaker 1: with that, dude, all right, all right, Well, well this 953 00:43:06,520 --> 00:43:09,240 Speaker 1: beer it poured super dark and it had a really 954 00:43:09,480 --> 00:43:12,560 Speaker 1: dark caramel brown head and it just completely set the 955 00:43:12,600 --> 00:43:14,719 Speaker 1: tone when you pour it, you look at it, you 956 00:43:14,760 --> 00:43:16,760 Speaker 1: know what, that beer's gonna taste like. It's gonna taste dark, 957 00:43:17,160 --> 00:43:20,799 Speaker 1: and I'm with you. It had super cinnamony notes going on. 958 00:43:21,200 --> 00:43:23,040 Speaker 1: But then you drink it and it's got those coffee 959 00:43:23,080 --> 00:43:25,399 Speaker 1: tones as well. It's a little sweet, and it had 960 00:43:25,440 --> 00:43:27,520 Speaker 1: that tiny touch of heat on the in the back 961 00:43:27,560 --> 00:43:29,719 Speaker 1: of it. It wasn't overwhelming. There's a beer Jual that 962 00:43:29,760 --> 00:43:32,239 Speaker 1: we that we have here locally that you mentioned in 963 00:43:32,280 --> 00:43:35,600 Speaker 1: your local brewery article, and they have a similar stout, 964 00:43:35,719 --> 00:43:38,839 Speaker 1: but sometimes they loaded up with heat. I'm talking so 965 00:43:38,920 --> 00:43:41,359 Speaker 1: hot that you can't even almost finish the beer like that. 966 00:43:41,360 --> 00:43:43,359 Speaker 1: That happened to me one time because it changes every 967 00:43:43,400 --> 00:43:45,719 Speaker 1: single month, and this was not the case. It just 968 00:43:45,760 --> 00:43:48,120 Speaker 1: had a little kiss of that heat. It made it interesting, 969 00:43:48,239 --> 00:43:50,239 Speaker 1: kept me coming back for more, but at the same time, 970 00:43:50,280 --> 00:43:53,200 Speaker 1: didn't completely blow me away with spice. Yeah, no doubt, man, 971 00:43:53,280 --> 00:43:55,040 Speaker 1: this was good. Big thanks for our friends, a great 972 00:43:55,080 --> 00:43:57,359 Speaker 1: divide for sending this beer our way, aren't Matt that's 973 00:43:57,360 --> 00:43:59,080 Speaker 1: gonna do it for this episode. If you want to 974 00:43:59,120 --> 00:44:01,239 Speaker 1: submit a listener quite shouldn't to be considered for a 975 00:44:01,239 --> 00:44:03,480 Speaker 1: future episode, go to how to Money dot com slash 976 00:44:03,520 --> 00:44:05,080 Speaker 1: ask and if you just want to read the beer 977 00:44:05,160 --> 00:44:07,799 Speaker 1: article I wrote or find previous episodes, just go to 978 00:44:07,840 --> 00:44:10,000 Speaker 1: how to money dot com and start poking around. Well, 979 00:44:10,080 --> 00:44:12,360 Speaker 1: and Jeel, you know, the reason we host this podcast 980 00:44:12,520 --> 00:44:14,719 Speaker 1: and especially to the reason we take listener questions is 981 00:44:14,760 --> 00:44:16,040 Speaker 1: we want to be able to help people when it 982 00:44:16,040 --> 00:44:19,120 Speaker 1: comes to their personal finances. If you haven't left us 983 00:44:19,160 --> 00:44:21,200 Speaker 1: a review yet, you could help other people who have 984 00:44:21,280 --> 00:44:24,399 Speaker 1: not found this podcast. You could help them find this 985 00:44:24,520 --> 00:44:27,040 Speaker 1: podcast and to learn ways that they could better their 986 00:44:27,040 --> 00:44:30,239 Speaker 1: financial situation. Just head over to Apple Podcasts and leave 987 00:44:30,280 --> 00:44:32,680 Speaker 1: us a review there, and you can subscribe wherever it 988 00:44:32,760 --> 00:44:34,520 Speaker 1: is that you listen to your podcasts so you don't 989 00:44:34,520 --> 00:44:36,560 Speaker 1: miss an episode. So, Joel, that's going to be a 990 00:44:36,600 --> 00:44:39,759 Speaker 1: buddy until next time. Best Friends Out, Best Friends Out.