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Speaker 1: Welcome to how to Money. I'm Joel and I am Matt.

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Speaker 1: Today we're answering your listener questions.

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Speaker 2: Welcome to and ask how to money Monday. I almost

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Speaker 2: said how to Monday, which is not what we're doing here.

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Speaker 2: We're not telling you how you should live your life,

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Speaker 2: although we kind of are, because money touches everything, right, buddy, Yeah,

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Speaker 2: touches everything.

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Speaker 1: There's a lot of freedom of choice in there, and

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Speaker 1: we don't dictate anything to you. But what we're just

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Speaker 1: offered some advice and opinion.

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Speaker 3: Yeah, do what float your boat to a certain extent,

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Speaker 3: Like a listener.

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Speaker 1: Friend, if you sent your question in, you asked us, okay, So.

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Speaker 2: Well it's on you a little bit once to know

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Speaker 2: what it is that we have to say about ibonds,

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Speaker 2: for instance, that's a question we're gonna get to listeners

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Speaker 2: asking if they like switching over to an adu, if

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Speaker 2: that's better than ibonds. And you might be thinking, man,

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Speaker 2: that's like apples to oranges. Well we will get to it.

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Speaker 2: N be like apples to spinach chicken. Yeah, we're gonna

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Speaker 2: talk about silver. Actually, there's been a whole lot of

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Speaker 2: gold talk recently. I feel like there's been less talk

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Speaker 2: about silver, What about silver jewel? What about palladium? What

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Speaker 2: about platinum? All the other precious metals you could invest in?

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Speaker 2: What about vibranium? You know, is that a real one?

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Speaker 2: You know vibranium. Vibranium is that's the made up metal

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Speaker 2: from Wakanda. Oh, I mean it's not made up.

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Speaker 3: It's fictional.

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Speaker 1: And saw those movies mostly because I haven't watched I

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Speaker 1: think maybe I watched like one Marvel movie in my

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Speaker 1: whole life and I try to stay away from it.

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Speaker 3: I feel like after that one, they all started to

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Speaker 3: go downhill. They were great, there is really good. Yeah,

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Speaker 3: that's that was around the endgame film whatever is before

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Speaker 3: they started like forcing all the plot lines.

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Speaker 2: Yes, yeah, exactly, as well as helocks. We're gonna talk

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Speaker 2: about Home MAKEU the line up. Where else can you

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Speaker 2: hear hear us talk about Marvel characters and movies but

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Speaker 2: then also he locks.

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Speaker 3: Jewel only hear it out of money and.

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Speaker 1: The fun and the culturally relevant to the mundane money talk.

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Speaker 1: We run the gamut. That's what we're doing here. Okay,

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Speaker 1: real quick listener. Andrea emailed us recently and she said

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Speaker 1: that if you guys haven't checked it out before you

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Speaker 1: should check out Amazon grocery. And I was wondering, Matt,

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Speaker 1: if you have given Amazon grocery a shot. She sent

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Speaker 1: over a screenshot of you. Sure did a recent purchase

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Speaker 1: and she got eighteen eggs for a dollar. First off,

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Speaker 1: it shows egg prices are not what they were a

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Speaker 1: year ago. Right, they really have come down kind of

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Speaker 1: gone back to normal. But eighteen eggs for a dollar,

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Speaker 1: the flocks are back? Is that normal? Is that not

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Speaker 1: normal on Amazon grocery? If that's normal, then you're right,

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Speaker 1: I probably should check out Amazon.

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Speaker 2: Grocery, except that I'm sure it was those plain, generic

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Speaker 2: white eggs. Then let's be honest, right, nothing wrong with

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Speaker 2: some place white eggs. Man, we've moved on to like

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Speaker 2: get the eggs. Oh man, we get the fancy brown eggs,

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Speaker 2: we get the elite eggs, now, Joel. It depends on

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Speaker 2: the price discrepancy for me, so typically we should be

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Speaker 2: more price sensitive.

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Speaker 1: Obviously, the two dozen exit the white exit costco is

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Speaker 1: typically around four dollars, and the two dozen brown eggs

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Speaker 1: is closer to eight dollars, and so, but yeah, it

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Speaker 1: is closer, it's closer. Sometimes I'll get the brown.

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Speaker 2: Once twice as much. Yeah, yeah, I got those Ivy

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Speaker 2: League eggs. Joel my eggs. Have they've got degrees? Do

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Speaker 2: they do they increase your IQ? Do they do anything

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Speaker 2: extra special? Oh?

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Speaker 3: I think they're the chickens baby are in better shape

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Speaker 3: when they laid leggs. I don't know, but yeah, no.

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Speaker 1: I think by the way, the listener listeners probably know

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Speaker 1: that we have had backyard chickens. They're all dead right now.

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Speaker 1: I blame my son, and so right now we are

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Speaker 1: doing store bought eggs until that's right we get new

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Speaker 1: chickens that we can hopefully keep alive.

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Speaker 3: Why why did I think that y'all got like some

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Speaker 3: some chicks.

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Speaker 2: Uh, well, we haven't supposed to bring all some some

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Speaker 2: pullits or some some chicks.

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Speaker 3: Yeah she did. They're dead.

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Speaker 1: Yeah wait no, but that was like in February. No,

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Speaker 1: this was like June of last year, so we've it's

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Speaker 1: been a while. Oh my gosh, time flying. Yeah, we

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Speaker 1: had those have those chickens, and they're all we're not

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Speaker 1: the best chicken owners.

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Speaker 2: Well, I was gonna say it makes me think of

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Speaker 2: Fantastic Mister Fox, like the opening scene where you're like, anyway,

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Speaker 2: I'm thinking about how I should probably pay more attention

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Speaker 2: to that, because like just the way I think you

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Speaker 2: make a purchase on Amazon, you get ready to check out,

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Speaker 2: and it's like, would you like to add something to

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Speaker 2: your order, and it's just like, you know, they show

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Speaker 2: you recent things. I'm like, no, I don't want to

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Speaker 2: buy more trash bags. I just got those trash bag

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Speaker 2: liners that don't need that. And I always just assume

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Speaker 2: that there, even though it's an item that I have

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Speaker 2: purchased before, that the price right then and there if

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Speaker 2: I add it is going to be more. And that's

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Speaker 2: just me being skeptical. But like Andrea pointed out, maybe

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Speaker 2: it's worth paying attention a little more to some of

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Speaker 2: the prompts Amazon Grocery, specifically what the actual prices are,

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Speaker 2: as opposed to just being like crystallize in my thought

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Speaker 2: and how I approach things, which is I think how

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Speaker 2: I tend to do things, like I know.

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Speaker 1: Put it in the category if it costs too much.

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Speaker 2: Yeah, and I don't even consider it at all, as

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Speaker 2: opposed to being a little more open minded and thinking, oh,

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Speaker 2: there's deals to be had, you just have to be

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Speaker 2: have your eyes open to them. Yeah, exactly. And I

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Speaker 2: think are certainly did a great I mean a dollar

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Speaker 2: for eighteen eggs, even though even if they're the plain

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Speaker 2: old generic white ones, that's uh, that's.

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Speaker 3: Tough to pass.

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Speaker 1: And what was Yeah, I don't she didn't say what

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Speaker 1: the delivery fee was. I think you can free it.

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Speaker 2: Was it free well, or maybe it was if it

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Speaker 2: was part of another order. I just remember her being

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Speaker 2: in guessing.

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Speaker 1: You have to order at least a certain dollar amount

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Speaker 1: or you have to pay a monthly fee. I want

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Speaker 1: to say it's seven ninety nine or something like that

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Speaker 1: to get Amazon grocery. So and then are you tipping

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Speaker 1: on top of that? And how much do you.

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Speaker 3: Have to get?

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Speaker 2: Don't take her tipping because I remember her saying that

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Speaker 2: they leave it at her door. But with it, she's

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Speaker 2: in DC and is cold, so she's like it all

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Speaker 2: stays fresh because it's been so cold outside.

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Speaker 1: I want more info, Like, so, if there's listeners out

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Speaker 1: there who have been using Amazon Grocery and they're like, oh, yes,

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Speaker 1: it's saving me money or it's not costing much more

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Speaker 1: and it's making my life so great, let me know.

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Speaker 1: Because I haven't delved into it personally yet, but seeing

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Speaker 1: this email and I'm like trying to do more.

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Speaker 3: Research with those kind of savings.

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Speaker 1: I will say I do buy some groceries, some dry

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Speaker 1: groceries sometimes on Amazon. Soup for some reason, like Campbell

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Speaker 1: soup or whatever is so much cheaper on Amazon than

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Speaker 1: it is at the grocery store, and so if.

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Speaker 3: I'm ordering soup, I get it from Amazon. Okay, I

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Speaker 3: know that's weird.

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Speaker 2: I was gonna say, I wondered if it's got a

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Speaker 2: very too depend on depending on where you live, like

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Speaker 2: not just from a city versus rural standpoint, But I

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Speaker 2: do wonder because I know eggs generally speaking, tend to

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Speaker 2: be more affordable, like in the Midwest, because of like

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Speaker 2: they're closer to all the chicken farms versus having to ship.

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Speaker 3: It like to the coast. Yeah, to the.

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Speaker 2: Elite podcasters who live on the coast, we're coast ish,

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Speaker 2: aren't we. We're not like all you know, we're not ish,

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Speaker 2: not the actual.

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Speaker 1: Coast anyway, We're I think they might even consider us

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Speaker 1: in Flyover country too, even though we're and in a

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Speaker 1: state that touches the coast, We're still we got water attractions.

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Speaker 1: We're not coast of the elites. Let's mention the beer

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Speaker 1: we're having on the sep so. This one is called

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Speaker 1: Cerberus Nocturn. It's a vanilla porter by Incendiary Brewing. Another

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Speaker 1: one given to us by Brandon, the head brewer and

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Speaker 1: owner over there in Incendiary.

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Speaker 3: Founder of Incendiary brew I've just got a lot of

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Speaker 3: you know, titles after Oh my gosh was the last one.

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Speaker 2: When did I say that he was like headmaster, head brewer,

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Speaker 2: the double Doore of Incinnia. Yeah, exactly.

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Speaker 1: And by the way, if you have a money question,

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Speaker 1: please do send it our way howdomoney dot com. Slash

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Speaker 1: ask is where the directions are. But really it's just

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Speaker 1: recording the voice memo on the app on your phone,

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Speaker 1: emailing it over to us. It'll take you all of

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Speaker 1: a minute and then hopefully we can take your question

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Speaker 1: next week on the show. Let's get some questions though, Matt.

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Speaker 1: This next question in particular is about moving money from

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Speaker 1: one investment to another.

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Speaker 4: Hi, Matt and Joel, this is Amy from the Bay Area.

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Speaker 4: I have a math question for you. This is regarding

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Speaker 4: interest rates for eyebonds. So back in the day in

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Speaker 4: twenty twenty one, I purchased ten thousand dollars in eyebonds,

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Speaker 4: because I think the interest rate was somewhere around nine percent.

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Speaker 4: I bought some more in twenty twenty two, also ten thousand,

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Speaker 4: and another ten thousand and twenty twenty three. Then I

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Speaker 4: stopped buying the ib on because the interest rates fell.

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Speaker 4: So I logged into my account and right now the

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Speaker 4: twenty twenty one and twenty two has an interest rate

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Speaker 4: of three point one two percent. Twenty twenty three has

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Speaker 4: an interest rate of three point five to three percent.

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Speaker 4: My total investment for those three years is thirty thousand dollars.

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Speaker 4: The current value is thirty five one hundred and sixty

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Speaker 4: eight dollars. I can't, for the life of me, figure

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Speaker 4: out what my money is actually earning, like for real,

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Speaker 4: because if I take what's earned and divided it by

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Speaker 4: what I put in, the interest rate is super high.

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Speaker 4: It is not the three percent ish interest rate that

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Speaker 4: is currently shown on my account. So I would love

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Speaker 4: to have some help to figure out what exactly am

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Speaker 4: I earning on these iminds should I keep them in there?

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Speaker 4: We are getting ready to start a home project, like

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Speaker 4: a large remodeling project where we're actually adding an ADU

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Speaker 4: to our home with hopes of either using it as

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Speaker 4: an income property, or maybe moving my parents into it

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Speaker 4: when they get older and need more assistance. So I

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Speaker 4: want to know should I keep the money here because

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Speaker 4: the first set of eminds is maturing soon, I can

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Speaker 4: take the money out, or I should just leave it

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Speaker 4: in here and let it ride and maybe take money

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Speaker 4: from other investments so that this could keep earning an

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Speaker 4: interest rate if the interest rate is actually very high

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Speaker 4: and beyond the three ish percent that is being advertised.

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Speaker 4: Thank you so much for your time, and I appreciate

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Speaker 4: your help with this.

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Speaker 3: Dude, you remember eyebonds.

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Speaker 1: It's been a minute since we talked about ibons.

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Speaker 2: For they came and then they went. Yeah, twenty twenty

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Speaker 2: two was like the year of the I bond. And

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Speaker 2: oh is that when inflation happened to skyrocket and they

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Speaker 2: adjusted the ibonds?

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Speaker 3: Yeah, that's so.

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Speaker 2: That's what the eye stands for, is inflation bonds. It's

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Speaker 2: not like it's not like an iPhone. What does the

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Speaker 2: I stand for? And it's not like an iMac or

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Speaker 2: an iPad. I think it's enternet is whether it stands

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Speaker 2: for with the eye in the Apple branding or is

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Speaker 2: it like you as an individual? Anyway, it doesn't matter.

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Speaker 1: I think it's using an individual's what it's called as

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Speaker 1: in like, this is your device, Yeah, I in this

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Speaker 1: case as.

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Speaker 2: Inflation inflation bonds and yeah, there's super hot there for

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Speaker 2: a minute.

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Speaker 1: Yeah, ay, it was like handsel in Yeah in Zoolander

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Speaker 1: right now. I had multiple ibon purchases that I made

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Speaker 1: at that period and tie icaus it was so great.

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Speaker 3: Yeah, it was fantastic. It's hard to turn down.

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Speaker 1: I no longer hold any of those eyebonds and that

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Speaker 1: was something actually we did talk about kind of on

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Speaker 1: the come down from eyebonds, was like, well when do

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Speaker 1: you sell them? And how long should you hold onto

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Speaker 1: your eyebonds? And that's essentially what this question is getting

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Speaker 1: at the root of, and we should talk about eyebons. Yeah,

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Speaker 1: they keep pace with inflation, that's the goal of eybonds.

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Speaker 1: But the rate, how do they work?

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Speaker 3: Joel?

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Speaker 1: Well, the rate changes every six months based on what's

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Speaker 1: happening with inflation and the CPI report, and the as

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Speaker 1: inflation has cooled, ibons have become far less attractive because

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Speaker 1: guess what if you're keeping up with the rate of

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Speaker 1: inflation and inflation is paying less than what you can

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Speaker 1: get in a bunch of other investments or even save

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Speaker 1: these accounts, then ibons just don't look very good. Well

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Speaker 1: in addition to that, Matt somethink that ebonds can have,

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Speaker 1: depending on when you purchase them, is a fixed rate

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Speaker 1: attached to them as well. Right, and so Amy mentioned well,

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Speaker 1: the earlier eyebonds that you bought, those did not have

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Speaker 1: any fixed rate attached Like when inflation was nine percent,

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Speaker 1: there was no fixed rate attached to it, but for

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Speaker 1: a short period of time you were getting a sick return,

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Speaker 1: right that equivalent to inflation in the eye bonds that

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Speaker 1: you purchased, you bought them because the floating rate was fantastic,

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Speaker 1: not because they had a great fixed rate attached to them.

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Speaker 1: More recently, though, as inflation has fallen, the fixed rate

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Speaker 1: has ticked up in an attempt to kind of make

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Speaker 1: eyebonds a little more enticing. But the overall rate is

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Speaker 1: still far worse than it was right in twenty twenty

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Speaker 1: two in that era, And so the current ibond rate,

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Speaker 1: if you were to buy one today is about four percent,

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Speaker 1: with zero point nine percent of that being fixed, which

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Speaker 1: you know, it's not too bad, but if inflation cools

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Speaker 1: back to two percent, which is what the Fed's goal is.

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Speaker 1: Your overall rate then would be closer to two point

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Speaker 1: nine percent, which is not as.

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Speaker 3: Good as four Yeah, exactly. Yeah.

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Speaker 2: So that's how these eyebonds are constructed. Let's talk about

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Speaker 2: when you might want to utilize an eyebond, because then

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Speaker 2: it might you know, that made sense as a short

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Speaker 2: term playback then as a way for folks to earn

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Speaker 2: extra on some of these medium term savings. That being said,

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Speaker 2: there were never a great replacement for money that you

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Speaker 2: wanted to invest more for the long term. So you

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Speaker 2: asked how much your eyebonds are earning. Well, each batch

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Speaker 2: is going to earn a different rate. So the iebonds

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Speaker 2: you bought back in twenty twenty one that started off great,

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Speaker 2: but they're now only earning the rate of inflation today

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Speaker 2: because there is no fixed rate. It's a fraction of

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Speaker 2: what you earn back then. Although the early returns were awesome,

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Speaker 2: you're earning less on that ten thousand dollars than you

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Speaker 2: would now earn in a high yield savings account. So

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Speaker 2: it's likely the same with the other I bonds that

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Speaker 2: you purchased as well, unless you bought them late in

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Speaker 2: the year because they would have a low fixed rate then.

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Speaker 2: But either way, not holding on to your eyebonds and

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Speaker 2: you know, cashing them out for your eighty U project,

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Speaker 2: I think it actually does make the most sense as

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Speaker 2: opposed to tapping maybe some other investments. Also, I wanted

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Speaker 2: to address this. She seemed to be a bit unsure

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Speaker 2: of the actual rate that she's receiving, right, She's like,

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Speaker 2: I did the math, and it seems like it's way

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Speaker 2: way higher than what it says when I log in,

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Speaker 2: And she's like, why do I have this.

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Speaker 1: Much money if my annualized return is like three percent?

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Speaker 2: Yeah, and so I think there might be a part

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Speaker 2: of it that's, well, you were earning an actual higher amount,

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Speaker 2: sort of like we just discussed.

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Speaker 3: But also in those early months and years.

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Speaker 2: Yeah, yeah, So I think she might be effectively calculating

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Speaker 2: her total rate of return, her total return on investment,

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Speaker 2: as opposed to it being annualized. Yea, and so this

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Speaker 2: is overly simple. But if you divide it by like

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Speaker 2: four or five, however long you've had it, you're going

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Speaker 2: to get closer to the annualized return. It's not exactly

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Speaker 2: the same because your overall compounding her overall rate.

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Speaker 1: Of return on those ibonds is not going to be

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Speaker 1: the number that she's seen. That's the number that's being

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Speaker 1: paid on this current six months batch. Yeah, and so

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Speaker 1: if she looks at the annualized rate of return over

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Speaker 1: like four years, let's say, since she's she initially bought

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Speaker 1: those ibonds, her like smoothed out rate of return could

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Speaker 1: look it's probably it's probably north of five percent. It

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Speaker 1: would be my guess, maybe even touch higher. And you

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Speaker 1: mentioned the Matt that you think that she should cash

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Speaker 1: these out for the EIGHTYU project, and yeah, I tend

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Speaker 1: to agree. I mean, it sounds like she wants to

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Speaker 1: pay cash for this project. And so her question really

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Speaker 1: now hinges less on whether she should keep those eebonds

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Speaker 1: around long term, but whether she to tap eebond dollars

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Speaker 1: or investment dollars. And we lean heavily towards liquidating your

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Speaker 1: EYE bonds when it comes down to the crux of

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Speaker 1: this question, because your overall rate of return has been

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Speaker 1: better than savings, but current returns aren't great. And so yes,

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Speaker 1: it's true that if you sell too early, you'll forfeit

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Speaker 1: some of the interest you would have earned the last

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Speaker 1: three months of interest but I think you're going to

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Speaker 1: be better off just liquidating your eyebonds and putting those

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Speaker 1: towards this ADU instead of tapping other investments to do so.

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Speaker 2: Yeah, and she mentioned getting to the point to where

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Speaker 2: she could tap that without penalty in some ways, like

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Speaker 2: eyebonds functions sort of like a CD, right, so you

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Speaker 2: have to keep them for a certain stretch of time

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Speaker 2: twelve months, But if you sell your eyebonds too soon

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Speaker 2: under five years, you're going to forfeit three months worth

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Speaker 2: of interest. And so since you bought your first batch

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Speaker 2: back in twenty twenty one, it sounds like you are

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Speaker 2: You're almost there, so try to hit that mark, and

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Speaker 2: once you do, go ahead and that money. As far

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Speaker 2: as your other eyebonds, I think I would still cash

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Speaker 2: them out instantly, because yes, you are forfeiting a bit

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Speaker 2: of interest, but it is keeping your other investments intact,

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Speaker 2: and it allows you to just avoid taking on certainly

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Speaker 2: higher interest debt. But it allows I don't know, maybe

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Speaker 2: there's a way you could tap the ones that are

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Speaker 2: not fully matured but five years matured, find ways to

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Speaker 2: maybe cash flow some of the other stuff.

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Speaker 3: But if not, I would not be.

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Speaker 2: Worried about cashing out those those other eye bonds as well,

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Speaker 2: because it's just such a small price to pay, especially

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Speaker 2: as these eyebond returns are just far less attractive these days.

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Speaker 1: Yeah, I mean, if you're keeping it in there just

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Speaker 1: to keep three months of I mean you can legit

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Speaker 1: calculate what is three months at the current rate of

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Speaker 1: three point one five percent or whatever it is, and

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Speaker 1: you can say, oh, I'm going to give up a

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Speaker 1: few hundred dollars right in returns or less than that

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Speaker 1: in all likelihood, and so yeah, I'm willing to give

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Speaker 1: that up so I don't have to tap other investments.

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Speaker 1: That's probably the best case because in most other investments

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Speaker 1: you have, you're talking about either like tapping money that's

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Speaker 1: protected in a retirement account, taking money out of a wrath,

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Speaker 1: and then you're talking about those dollars not compounding for

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Speaker 1: your future, or if it's an a taxable brokerage account,

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Speaker 1: paying capital gains taxes. I think there's just a lot

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Speaker 1: of reasons to say, great, let's tap the eyebonds. Let

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Speaker 1: those ones that are close to hitting the five year

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Speaker 1: mark wait till they hit that timeline. The rest, let's

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Speaker 1: just get rid of them and move ahead with the

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Speaker 1: ADU project. I mean, the ebond money, Amy, that you

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Speaker 1: diligently socked away is going to be super helpful in

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Speaker 1: this next investment. And yeah, we're talking about apples to

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Speaker 1: spinach here, right, but these are both still the eye

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Speaker 1: bonds were a great place to have your money, then

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Speaker 1: sounds like the ADU is a better place to be

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Speaker 1: putting your money now. It's awesome that this money from

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Speaker 1: the I bonds could help facilitate your ability to earn

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Speaker 1: additional income via this ADU on your property, and in

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Speaker 1: all likelihood it's going to surpass earning what you were

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Speaker 1: able to get with those eyebonds. The truth is, you know,

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Speaker 1: rental real estate on your property is often a fantastic

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Speaker 1: investment if you can self manage and make the numbers work.

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Speaker 1: And it also gives you flexibility for the future when

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Speaker 1: it comes to your inlaws.

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Speaker 3: That's right.

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Speaker 2: Sometimes you don't make decisions purely based on the finances.

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Speaker 2: You think about lifestyle a little bit, you think about family. So, Amy,

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Speaker 2: we hope that gets you pointed in the right direction, Joel,

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Speaker 2: We've got more questions to get to. We're going to

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Speaker 2: talk about roth conversions, precious metals and more.

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Speaker 3: Right after this. All right, Matt, we're back.

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Speaker 1: Let's say we're gonna get to a question about roth

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Speaker 1: conversions when those make sense here in just a second.

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Speaker 1: But first let's get to a question about a trust.

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Speaker 1: When does that make sense?

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Speaker 5: Hey, Joel and Matt, this is Michael from Chicago. I

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Speaker 5: have a follow up to your answer to the first question.

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Speaker 5: In episode ten to ninety, Matt mentioned that such a

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Speaker 5: high net worth would make the couple who asked that

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Speaker 5: question something of a financial target. I don't have nearly

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Speaker 5: the amount of money that couple has, but it did

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Speaker 5: make me curious whether you think either a revocable or

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Speaker 5: irrevocable trust makes sense for certain folks. A family member

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Speaker 5: has recently started badgering me about setting up a trust

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Speaker 5: for my invested assets so that someone can't sue me

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Speaker 5: and drain my brokerage account and everything else. But this

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Speaker 5: has always struck me as the kind of unnecessary complication

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Speaker 5: that only fancy financial advisors ever mentioned. And I can't

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Speaker 5: really imagine a realistic scenario in which someone not only

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Speaker 5: sues me but actually wins and is awarded a chunk

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Speaker 5: of my money in the process. I'm very DIY with

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Speaker 5: my money and don't want to put an extra complication

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Speaker 5: or layer between myself and my assets if I don't

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Speaker 5: need to. For context, I'm recently married, but we plan

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Speaker 5: to stay child free, so I'm thinking more about Die

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Speaker 5: with Zero than I am about heirs. Curious for your thoughts,

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Speaker 5: Thanks guys.

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Speaker 2: Ooh, so a couple things he missed Die with Zero

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Speaker 2: and you're actually going to be speaking with Bill Perkins,

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Speaker 2: so listeners, I can keep an eye out for that

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Speaker 2: interview episode coming up here in the coming weeks. But

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Speaker 2: also I wanted to mention this is like a little

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Speaker 2: bit housekeeping before we get to your question.

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Speaker 3: Michael.

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Speaker 2: You mentioned that that the couple that sold the business

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Speaker 2: and had a ton of money and something about them

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Speaker 2: being a target. Yes, I know exactly what you're talking about.

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Speaker 2: And this is how can we forget the listener with

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Speaker 2: the three hundred million dollar the wealthiest wealthiest, how the

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Speaker 2: money listener of all time? And it turns out they

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Speaker 2: are very wealthy, but not three hundred million wealthy because

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Speaker 2: shows she wrote back, it was just like mortified slash

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Speaker 2: kind of beside herself and she's like, oh my gosh,

436
00:20:27,640 --> 00:20:30,679
Speaker 2: so sleep deprived, new baby at home, it's three million.

437
00:20:30,760 --> 00:20:33,119
Speaker 2: I don't know why I said three hundred million, three million,

438
00:20:33,720 --> 00:20:36,240
Speaker 2: but a lot of what we said honestly, I mean,

439
00:20:36,240 --> 00:20:39,920
Speaker 2: it truly doesn't change all that much. Although with three

440
00:20:40,040 --> 00:20:43,200
Speaker 2: there is much less need for sort of like the

441
00:20:43,200 --> 00:20:45,800
Speaker 2: the financial structural architecture that you need to work on

442
00:20:45,840 --> 00:20:48,320
Speaker 2: creating as opposed to like there's more diying.

443
00:20:48,359 --> 00:20:50,680
Speaker 3: I think that you can do exactly need as much help.

444
00:20:50,920 --> 00:20:54,320
Speaker 2: Yeah, yeah, but either way, it still that big of

445
00:20:54,320 --> 00:20:56,480
Speaker 2: an influx because you don't need to still want to

446
00:20:56,600 --> 00:20:58,760
Speaker 2: hire all the professionals to make sure that is still

447
00:20:58,760 --> 00:20:59,560
Speaker 2: life changing money.

448
00:20:59,600 --> 00:21:01,480
Speaker 1: But you we don't need to hire someone to run

449
00:21:01,600 --> 00:21:03,280
Speaker 1: a philanthropic arm for exactly.

450
00:21:03,320 --> 00:21:04,159
Speaker 3: Yeah, yeah, exactly.

451
00:21:04,200 --> 00:21:06,280
Speaker 2: You don't know, you don't need to immediately set up

452
00:21:06,320 --> 00:21:09,399
Speaker 2: a trust find the best nonprofits you're giving dollar dollars.

453
00:21:09,480 --> 00:21:10,280
Speaker 3: Yeah, probably not.

454
00:21:10,200 --> 00:21:12,080
Speaker 1: Going to hire a butler, like that's three hundred million

455
00:21:12,080 --> 00:21:13,440
Speaker 1: dollar money, three million dollar money.

456
00:21:13,520 --> 00:21:14,040
Speaker 3: Not the case.

457
00:21:14,080 --> 00:21:16,840
Speaker 1: So yeah, that was really funny to get that email

458
00:21:16,880 --> 00:21:20,600
Speaker 1: after the fact. But let's get to Michael's question. We

459
00:21:20,640 --> 00:21:23,960
Speaker 1: are also fans of simplicity. We're all about like reducing

460
00:21:24,000 --> 00:21:28,679
Speaker 1: complexity whenever humanly possible, and so given your circumstance, Michael,

461
00:21:28,880 --> 00:21:31,000
Speaker 1: you don't want kids and you want to spend that

462
00:21:31,040 --> 00:21:34,240
Speaker 1: money down. We agree that a trust is an unnecessary

463
00:21:34,320 --> 00:21:37,080
Speaker 1: step to take. So I'm curious who this is in

464
00:21:37,160 --> 00:21:40,080
Speaker 1: your family who's like badgering you to get this trust done.

465
00:21:39,720 --> 00:21:43,240
Speaker 1: Do they know what your goals are? Because it doesn't

466
00:21:43,240 --> 00:21:44,960
Speaker 1: sound like it's the right fit for you at this point.

467
00:21:45,000 --> 00:21:47,760
Speaker 1: Maybe it came in handy for them based on their circumstances,

468
00:21:47,800 --> 00:21:51,080
Speaker 1: and they just think that it's a trust is a hammer,

469
00:21:51,160 --> 00:21:55,080
Speaker 1: and then everyone everyone should should needs one in their life. Well,

470
00:21:55,600 --> 00:21:59,240
Speaker 1: your life just isn't complicated enough to merit one. If

471
00:21:59,320 --> 00:22:01,400
Speaker 1: let's say you want to pass money on to multiple

472
00:22:01,480 --> 00:22:04,080
Speaker 1: errors and you wanted to decide when they would receive

473
00:22:04,160 --> 00:22:07,119
Speaker 1: the money, then a trust would probably make more sense.

474
00:22:07,920 --> 00:22:11,640
Speaker 1: If you were worried about your mental faculties, same thing, right,

475
00:22:11,680 --> 00:22:14,399
Speaker 1: That's that's something else where you're like, I kind of

476
00:22:14,400 --> 00:22:18,280
Speaker 1: losing it or don't trust myself, Yeah that's what I

477
00:22:18,359 --> 00:22:20,240
Speaker 1: used to be. Or if there was a literal medical

478
00:22:20,280 --> 00:22:24,359
Speaker 1: diagnosis that made you worry about mental decline, then that's

479
00:22:24,400 --> 00:22:26,840
Speaker 1: something you would want to consider. But you know, none

480
00:22:26,880 --> 00:22:30,200
Speaker 1: of the normal reasons where someone might consider a trust

481
00:22:30,240 --> 00:22:31,600
Speaker 1: seem to apply to you totally.

482
00:22:31,680 --> 00:22:33,280
Speaker 2: Yeah, I'm going to mention some of the built in

483
00:22:33,400 --> 00:22:35,840
Speaker 2: legal protections though that you'll come across in other accounts.

484
00:22:35,920 --> 00:22:39,800
Speaker 2: Your workplace retirement accounts are typically one hundred percent protected

485
00:22:40,480 --> 00:22:44,280
Speaker 2: from creditors and from lawsuits thanks to federal law. Personal

486
00:22:44,359 --> 00:22:47,320
Speaker 2: retirement accounts so iras, they've got a bunch of protection

487
00:22:47,359 --> 00:22:49,520
Speaker 2: as well, but there is a cap. It's one and

488
00:22:49,560 --> 00:22:52,760
Speaker 2: a half million dollars unless that money was rolled over

489
00:22:52,760 --> 00:22:53,640
Speaker 2: from a four to one K.

490
00:22:53,840 --> 00:22:56,520
Speaker 1: In which it's still still protected. Then so if you

491
00:22:56,600 --> 00:22:59,119
Speaker 1: roll your four one k into an IRA, that money,

492
00:22:59,119 --> 00:23:01,160
Speaker 1: even though it's technically and I right now, it's still

493
00:23:01,160 --> 00:23:02,480
Speaker 1: predicted because it was four one k.

494
00:23:02,480 --> 00:23:04,760
Speaker 2: Money exactly, and that's still plenty I think for a

495
00:23:04,840 --> 00:23:06,720
Speaker 2: lot of folks. So basically, you don't need to worry

496
00:23:06,720 --> 00:23:09,920
Speaker 2: about any of those dollars because they are legally shielded.

497
00:23:10,160 --> 00:23:12,280
Speaker 2: That's not what he's asking about. Though, your taxbile brokerage

498
00:23:12,320 --> 00:23:15,200
Speaker 2: account is at more risk if you were to get sued,

499
00:23:15,240 --> 00:23:18,600
Speaker 2: which is why you are considering a trust, and irrevocable

500
00:23:18,640 --> 00:23:21,920
Speaker 2: trust specifically does protect your brokerage account. That being said,

501
00:23:21,960 --> 00:23:24,600
Speaker 2: it is still not a maneuver that I think either

502
00:23:24,640 --> 00:23:26,000
Speaker 2: one of us would encourage to them.

503
00:23:26,080 --> 00:23:28,399
Speaker 1: Yeah, yeah, again, like how much money do you have

504
00:23:28,440 --> 00:23:30,520
Speaker 1: in there? How at risk are you? You didn't make

505
00:23:30,560 --> 00:23:33,560
Speaker 1: it sound like you were that you're doing You made

506
00:23:33,520 --> 00:23:35,040
Speaker 1: it sound like you're doing well, but that you're not

507
00:23:36,040 --> 00:23:41,240
Speaker 1: in the elite rich circles. Right, So if it's because

508
00:23:41,320 --> 00:23:44,320
Speaker 1: let's say you're you have some fear of getting sued,

509
00:23:44,720 --> 00:23:49,040
Speaker 1: your best bet is likely an umbrella policy in the

510
00:23:49,080 --> 00:23:53,640
Speaker 1: amount roughly of that taxbile brokerage account. It's not very expensive,

511
00:23:53,680 --> 00:23:56,320
Speaker 1: it's a few hundred dollars a year, and it will

512
00:23:56,359 --> 00:23:58,719
Speaker 1: offer you a lot of protection right in the in

513
00:23:58,760 --> 00:24:02,520
Speaker 1: the unlikely event of a big lawsuit. So yeah, and

514
00:24:02,560 --> 00:24:06,120
Speaker 1: I say unlikely event because you really do it's it's

515
00:24:06,160 --> 00:24:09,639
Speaker 1: not that it's not possible, but certainly possible. Think about

516
00:24:09,840 --> 00:24:12,320
Speaker 1: what does your life look like highly unlikely though, typically

517
00:24:12,520 --> 00:24:15,320
Speaker 1: the question is the question we get matt from from landlords,

518
00:24:15,680 --> 00:24:19,800
Speaker 1: because they do have a higher potential, a higher likelihood

519
00:24:20,320 --> 00:24:25,320
Speaker 1: of being sued and of that lawsuit being a substantial

520
00:24:25,320 --> 00:24:28,280
Speaker 1: amount and being a little more likely to be effective.

521
00:24:28,359 --> 00:24:30,920
Speaker 1: So that's just not the case for Michael. Here, we

522
00:24:30,920 --> 00:24:33,560
Speaker 1: would say ramping up your insurance protection that's the best

523
00:24:33,640 --> 00:24:36,879
Speaker 1: route to go, and even that is probably unlikely to

524
00:24:36,960 --> 00:24:40,680
Speaker 1: be necessary. But given how low the cost is and

525
00:24:40,840 --> 00:24:43,200
Speaker 1: the protection it provides, the peace of mind that it

526
00:24:43,200 --> 00:24:46,880
Speaker 1: will offer you, I think it's like a success tax essentially,

527
00:24:47,240 --> 00:24:49,400
Speaker 1: that's worth paying a few hundred bucks just to say

528
00:24:49,440 --> 00:24:51,400
Speaker 1: I've gotten this taken care of. I don't have to

529
00:24:51,640 --> 00:24:54,480
Speaker 1: I don't have to worry about being that that portion

530
00:24:54,680 --> 00:24:57,200
Speaker 1: of my wealth being wiped out in the unlikely event.

531
00:24:57,600 --> 00:24:59,680
Speaker 1: Then if that it helps you breathe easy, it's probably

532
00:24:59,680 --> 00:25:00,000
Speaker 1: a good way.

533
00:25:00,440 --> 00:25:05,200
Speaker 2: Yeah, we're big fans of umbrella policies, personal liability policy plans,

534
00:25:05,240 --> 00:25:07,119
Speaker 2: and specifically Joe like one of the things that you

535
00:25:07,119 --> 00:25:09,119
Speaker 2: mentioned this multiple times, But the low cost of the

536
00:25:09,240 --> 00:25:12,359
Speaker 2: umbrella policy is a part of So that's the counter

537
00:25:12,440 --> 00:25:16,480
Speaker 2: factual to why the trusts that were not fans of

538
00:25:16,520 --> 00:25:18,560
Speaker 2: those as well, because of the fact that they can

539
00:25:19,040 --> 00:25:21,359
Speaker 2: be so stink and expensive to set up. But then

540
00:25:21,560 --> 00:25:23,520
Speaker 2: on top of that, we're talking about the ongoing annual

541
00:25:23,560 --> 00:25:25,919
Speaker 2: cost to maintain that Like this is like they're like

542
00:25:26,040 --> 00:25:30,760
Speaker 2: irrevocable trust is a completely separate legal entity that the

543
00:25:30,800 --> 00:25:34,520
Speaker 2: IRS recognizes. And you're asked you were saying earlier, I

544
00:25:34,520 --> 00:25:37,000
Speaker 2: wonder who it is that's mentioning this. I think it's

545
00:25:37,040 --> 00:25:39,879
Speaker 2: a family member who has been convinced that this is

546
00:25:39,920 --> 00:25:44,359
Speaker 2: the ticket because that family member has gotten sold a

547
00:25:44,359 --> 00:25:48,359
Speaker 2: trust themselves. This is typically something a lot of times

548
00:25:48,400 --> 00:25:51,360
Speaker 2: that is pitched. And if you are a financial advisor

549
00:25:51,400 --> 00:25:54,360
Speaker 2: and you've got this recurring revenue coming in where you're like, oh, yeah,

550
00:25:54,359 --> 00:25:56,439
Speaker 2: it cost this much for me to do the paperwork

551
00:25:56,480 --> 00:26:00,000
Speaker 2: to file your tax return for that trust. That's something

552
00:26:00,080 --> 00:26:02,719
Speaker 2: that they can make thousands on. I mean, depending on

553
00:26:02,760 --> 00:26:04,639
Speaker 2: the complexity of it, it can be tens of thousands to

554
00:26:04,680 --> 00:26:06,560
Speaker 2: set up, but then year to year it can be

555
00:26:06,560 --> 00:26:08,919
Speaker 2: thousands of dollars in order to maintain. So it's this

556
00:26:08,960 --> 00:26:12,400
Speaker 2: sort of it's this source of revenue for whoever might

557
00:26:12,560 --> 00:26:15,280
Speaker 2: be mentioning that the trust is something.

558
00:26:15,119 --> 00:26:15,800
Speaker 3: That you should consider.

559
00:26:15,960 --> 00:26:19,160
Speaker 1: And it's worth mentioning that if you need a trust,

560
00:26:19,160 --> 00:26:23,080
Speaker 1: there are online avenues to get that for less complicated

561
00:26:23,160 --> 00:26:26,640
Speaker 1: trusts that would significantly reduce the cost. It's at least

562
00:26:26,640 --> 00:26:30,399
Speaker 1: worth considering, right, depending on what are your needs and

563
00:26:31,040 --> 00:26:33,880
Speaker 1: what's your budget. But I just, yeah, I think you're right.

564
00:26:34,080 --> 00:26:37,600
Speaker 1: The simplest, most cost effective path to thread the needle

565
00:26:37,640 --> 00:26:41,520
Speaker 1: of additional protection without overdoing it. Is this an umbrella

566
00:26:41,560 --> 00:26:44,480
Speaker 1: insurance policy? And I think last but not least, last

567
00:26:44,480 --> 00:26:46,480
Speaker 1: thing I want to mention, you want to make sure

568
00:26:46,520 --> 00:26:48,640
Speaker 1: that you have a will, that you have life insurance,

569
00:26:49,000 --> 00:26:53,480
Speaker 1: and that your beneficiary designation is updated. That's the low

570
00:26:53,520 --> 00:26:56,240
Speaker 1: hanging fruit that so many people miss out on. The

571
00:26:56,280 --> 00:27:00,720
Speaker 1: cost is very little. The cost is exactly nothing on

572
00:27:00,720 --> 00:27:03,680
Speaker 1: some of those things, like the beneficiary designation doesn't cost

573
00:27:03,720 --> 00:27:04,120
Speaker 1: you a dime.

574
00:27:04,240 --> 00:27:04,720
Speaker 3: Go in there.

575
00:27:04,840 --> 00:27:07,520
Speaker 1: Make sure that the person you want to have your

576
00:27:07,520 --> 00:27:11,760
Speaker 1: money in the case of your death is properly attributed

577
00:27:12,200 --> 00:27:15,040
Speaker 1: in each one of your accounts. That's just one of

578
00:27:15,040 --> 00:27:18,800
Speaker 1: those men. It's so sad, Matt when somebody passes away

579
00:27:19,320 --> 00:27:23,639
Speaker 1: and they just didn't update it. The beneficiary designation in ten, fifteen,

580
00:27:23,720 --> 00:27:27,040
Speaker 1: twenty years is a person that inherits the bulk of

581
00:27:27,040 --> 00:27:30,320
Speaker 1: their money is not the person they wanted to inherit,

582
00:27:30,600 --> 00:27:33,719
Speaker 1: another person they were married to, potentially, and I just

583
00:27:34,040 --> 00:27:35,800
Speaker 1: I shudder to think about that stuff. It's one of

584
00:27:35,880 --> 00:27:39,000
Speaker 1: those really easy things to do. Takes all of thirty

585
00:27:39,000 --> 00:27:41,800
Speaker 1: two seconds, and literally it takes that long.

586
00:27:41,960 --> 00:27:44,040
Speaker 2: Yeah, this doesn't so this doesn't keep you from getting

587
00:27:44,080 --> 00:27:46,440
Speaker 2: sued updating all this, But for everyone else out there,

588
00:27:46,560 --> 00:27:49,040
Speaker 2: you should absolutely be doing this because, like you said,

589
00:27:49,160 --> 00:27:53,240
Speaker 2: like thirty seconds, I'm sure we talked about this when

590
00:27:53,240 --> 00:27:55,320
Speaker 2: I did this at some point last year.

591
00:27:55,440 --> 00:27:56,959
Speaker 1: Do it while like the ad is playing before your

592
00:27:57,000 --> 00:27:57,880
Speaker 1: TV show actually comes.

593
00:27:58,040 --> 00:28:00,639
Speaker 2: It is so easy to do, and I was actually

594
00:28:00,640 --> 00:28:02,280
Speaker 2: shocked that I had an updated it.

595
00:28:02,680 --> 00:28:05,280
Speaker 1: There was nobody. It's not like I had somebody else down.

596
00:28:05,160 --> 00:28:06,960
Speaker 3: Wasn't your old girlfriend, tom oh.

597
00:28:07,040 --> 00:28:10,080
Speaker 2: I wasn't investing back when I was dating girls. But uh,

598
00:28:10,160 --> 00:28:14,400
Speaker 2: I'm sure in some crazy future scenario where this was necessary,

599
00:28:14,520 --> 00:28:17,000
Speaker 2: Kate would be thankful that I had taken care of

600
00:28:17,000 --> 00:28:19,440
Speaker 2: that for her. Joe, Let's get to another question. Let's

601
00:28:19,480 --> 00:28:21,600
Speaker 2: now hear from a listener who is entering into his

602
00:28:21,720 --> 00:28:24,960
Speaker 2: retirement years and he wants to consider some of these

603
00:28:24,960 --> 00:28:27,359
Speaker 2: financial maneuvers that's going to set them up for even

604
00:28:27,359 --> 00:28:28,680
Speaker 2: more financial success.

605
00:28:29,000 --> 00:28:32,040
Speaker 6: Hey man, Jeel, this is Mike from Southern California. I'm

606
00:28:32,040 --> 00:28:34,399
Speaker 6: calling in today to find out some information about the

607
00:28:34,480 --> 00:28:38,960
Speaker 6: rules of a roth conversion. I currently am sixty one,

608
00:28:39,640 --> 00:28:42,960
Speaker 6: so I'm eligible to pull money out either way. I'm

609
00:28:42,960 --> 00:28:46,560
Speaker 6: looking at converting my traditional IRA to a Roth IRA,

610
00:28:47,200 --> 00:28:49,080
Speaker 6: and I'm a little confused on the length of time

611
00:28:49,120 --> 00:28:51,440
Speaker 6: I need to keep that money in there. Do I

612
00:28:51,480 --> 00:28:53,400
Speaker 6: need to keep the initial amount in there for the

613
00:28:53,440 --> 00:28:56,960
Speaker 6: full five years or is it just the interest earned

614
00:28:57,040 --> 00:29:00,800
Speaker 6: on that initial deposit that asked in that account for

615
00:29:00,880 --> 00:29:03,400
Speaker 6: five years? Any help on this matter would be great.

616
00:29:03,720 --> 00:29:04,560
Speaker 6: Thanks guys.

617
00:29:05,080 --> 00:29:06,880
Speaker 1: Well, I love it Mike's thinking about this. This This

618
00:29:06,960 --> 00:29:09,320
Speaker 1: can be one of those confusing things people might have

619
00:29:09,360 --> 00:29:11,440
Speaker 1: heard about the five year rule, which we need to

620
00:29:11,480 --> 00:29:14,320
Speaker 1: talk about. Yeah, we talked about actually an earlier five

621
00:29:14,400 --> 00:29:19,080
Speaker 1: year rule, Matt in regards to the bonds, the eye bonds,

622
00:29:19,240 --> 00:29:21,760
Speaker 1: But it's a little different when you're talking about roth conversions.

623
00:29:22,080 --> 00:29:25,080
Speaker 1: But the truth is, for a lot of folks in

624
00:29:25,120 --> 00:29:29,520
Speaker 1: your stage of life, Mike, regular wroth conversions typically make

625
00:29:29,560 --> 00:29:33,080
Speaker 1: a lot of sense. This is the time to make

626
00:29:33,120 --> 00:29:35,440
Speaker 1: those happen to pull it off, so much depends on

627
00:29:35,480 --> 00:29:38,120
Speaker 1: whether you're still working, what your upper tax bracket is.

628
00:29:38,560 --> 00:29:42,680
Speaker 1: But prioritizing wroth conversions in the coming years, it could

629
00:29:42,760 --> 00:29:45,800
Speaker 1: reduce the overall amount of tax you pay, could reduce

630
00:29:46,160 --> 00:29:50,280
Speaker 1: required minimum distributions later on down the line, and it

631
00:29:50,440 --> 00:29:52,560
Speaker 1: can make it easier to give that money away to

632
00:29:52,600 --> 00:29:55,400
Speaker 1: your airs if you so desire, as well, so a

633
00:29:55,440 --> 00:29:57,480
Speaker 1: lot of potentially good perks from that, that's right.

634
00:29:57,520 --> 00:30:00,360
Speaker 2: Yeah, And the truth is you can convert traditional IRA

635
00:30:00,520 --> 00:30:04,200
Speaker 2: dollars to wroth dollars at any point. There's no time

636
00:30:04,240 --> 00:30:07,120
Speaker 2: limit before you can make that conversion. If you're talking

637
00:30:07,160 --> 00:30:10,960
Speaker 2: about tapping your wroth ira. Once you've done the conversion,

638
00:30:11,120 --> 00:30:13,440
Speaker 2: it's going to depend. So for younger how to money

639
00:30:13,440 --> 00:30:16,920
Speaker 2: listeners out there, they're going to need to wait five years.

640
00:30:17,320 --> 00:30:20,480
Speaker 2: But Mike, in your case, you would not, and that's

641
00:30:20,520 --> 00:30:23,680
Speaker 2: because you are old enough. Fifty nine and a half

642
00:30:23,720 --> 00:30:26,560
Speaker 2: is the magical age where you can access the converted

643
00:30:26,640 --> 00:30:30,400
Speaker 2: principle without having to watch the clock. So that like

644
00:30:30,480 --> 00:30:32,640
Speaker 2: all those contributions that you put in over the years

645
00:30:32,640 --> 00:30:35,080
Speaker 2: can be tapped. Then whatever you like, that's right.

646
00:30:35,400 --> 00:30:38,640
Speaker 1: But the growth, which is likely the more substantial portion

647
00:30:38,840 --> 00:30:41,760
Speaker 1: for you at this point, Mike, it might not be accessible.

648
00:30:42,080 --> 00:30:45,560
Speaker 1: It ultimately depends on whether you've had a wroth ira

649
00:30:45,800 --> 00:30:48,440
Speaker 1: open for at least five years. Even if it's a

650
00:30:48,440 --> 00:30:51,400
Speaker 1: small one with like not much money in it, that's okay,

651
00:30:52,080 --> 00:30:54,880
Speaker 1: just as long as the clock started ticking in your

652
00:30:54,880 --> 00:30:58,680
Speaker 1: mid fifties. So if so, you can tap not just

653
00:30:58,720 --> 00:31:02,600
Speaker 1: the contributions but the growth as well, if the converted

654
00:31:02,640 --> 00:31:05,520
Speaker 1: money will be like your first roth Iray dollars.

655
00:31:05,560 --> 00:31:08,600
Speaker 2: The first yeah, wroth Iray money that you've ever put into,

656
00:31:08,760 --> 00:31:12,080
Speaker 2: Like we're talking about the actual container, like the accounts

657
00:31:12,200 --> 00:31:13,520
Speaker 2: that were is what we're discussing.

658
00:31:13,560 --> 00:31:16,120
Speaker 1: It's all about how long that container has been opened,

659
00:31:16,200 --> 00:31:19,640
Speaker 1: Like when did you open that puppy and so yeah,

660
00:31:19,680 --> 00:31:22,000
Speaker 1: if these are going to be your first dollars ever

661
00:31:22,000 --> 00:31:26,000
Speaker 1: put into a roth ira, know that only the contributions

662
00:31:26,040 --> 00:31:28,280
Speaker 1: will be available to you until you hit that five

663
00:31:28,320 --> 00:31:30,640
Speaker 1: year mark. So make sure you have the cash on

664
00:31:30,680 --> 00:31:33,200
Speaker 1: hand to pay tax on the conversion. By the way,

665
00:31:33,200 --> 00:31:35,880
Speaker 1: that's always a really important thing to keep in mind.

666
00:31:35,920 --> 00:31:37,600
Speaker 1: Some people are like, yeah, let me do this conversion

667
00:31:37,600 --> 00:31:39,760
Speaker 1: so I save on tax down the road, but know

668
00:31:39,840 --> 00:31:42,160
Speaker 1: that you're gonna have to pay tax now. In order

669
00:31:42,280 --> 00:31:44,080
Speaker 1: to do that, you have to have the cash on hand.

670
00:31:43,960 --> 00:31:44,720
Speaker 3: To do so. Yeah.

671
00:31:44,800 --> 00:31:46,640
Speaker 2: Yeah, you need to take into account some of these

672
00:31:46,680 --> 00:31:49,280
Speaker 2: additional sources of income, right because if we're talking about

673
00:31:49,440 --> 00:31:52,880
Speaker 2: rm ds, so Joe, that's the required minimum distributions you

674
00:31:52,920 --> 00:31:54,960
Speaker 2: mentioned earlier. If we're talking about that, maybe we're talking

675
00:31:54,960 --> 00:31:57,400
Speaker 2: about a pension, we're talking about social Security income, Like

676
00:31:57,480 --> 00:32:00,280
Speaker 2: all that is going to increase your income down the line,

677
00:32:00,360 --> 00:32:03,719
Speaker 2: and so it might be worth considering a more strategic

678
00:32:03,800 --> 00:32:06,840
Speaker 2: approach to your conversion, like the way Mike talked about it.

679
00:32:06,960 --> 00:32:11,160
Speaker 2: He called it a conversion like singular a lumpsom yes exactly,

680
00:32:11,160 --> 00:32:12,880
Speaker 2: which makes me think that, oh, my gosh, he's got

681
00:32:12,920 --> 00:32:16,360
Speaker 2: all of this pre tax money, all of this traditional

682
00:32:17,080 --> 00:32:19,440
Speaker 2: IRA money. And if Mike, if you, if you do

683
00:32:19,480 --> 00:32:22,560
Speaker 2: that all at once, like all of this protect you know,

684
00:32:22,800 --> 00:32:25,320
Speaker 2: tax protected money is all of a sudden exposed. It's

685
00:32:25,360 --> 00:32:29,560
Speaker 2: like out on the taxation battlefield, and you could get

686
00:32:29,600 --> 00:32:34,239
Speaker 2: destroyed from a tax standpoint. And so that's when just

687
00:32:34,280 --> 00:32:36,760
Speaker 2: more of a strategy makes sense, like a laddering approach

688
00:32:36,840 --> 00:32:40,080
Speaker 2: where you do a certain amount every single year. Essentially,

689
00:32:40,080 --> 00:32:43,000
Speaker 2: what you want to do is, and you said the

690
00:32:43,000 --> 00:32:46,480
Speaker 2: studel you said, like your upper end tax bracket. A

691
00:32:46,480 --> 00:32:49,320
Speaker 2: lot of financial planners call this filling up the tax bracket.

692
00:32:49,320 --> 00:32:52,120
Speaker 2: And what you want to do is utilize the space

693
00:32:52,240 --> 00:32:54,600
Speaker 2: that you have before you get bumped up to the

694
00:32:54,640 --> 00:32:58,800
Speaker 2: next tax bracket. To be able to essentially utilize that space.

695
00:32:58,840 --> 00:33:02,080
Speaker 2: It's sort of like, I don't know, It's like say

696
00:33:02,080 --> 00:33:03,960
Speaker 2: you're mailing something to a friend, and you're like, well,

697
00:33:03,960 --> 00:33:06,480
Speaker 2: I got all this extra space, and maybe let's assume

698
00:33:06,480 --> 00:33:08,920
Speaker 2: you're not having to pay based on weight, and you're

699
00:33:09,040 --> 00:33:11,320
Speaker 2: and you're so you're like mailing a partially empty box.

700
00:33:11,320 --> 00:33:13,080
Speaker 2: It's like, no, No, let's go ahead and send them like

701
00:33:13,120 --> 00:33:15,680
Speaker 2: another little gift. Turns out the person you're sending that

702
00:33:15,720 --> 00:33:19,480
Speaker 2: gift to is future you, So just keep that in

703
00:33:19,480 --> 00:33:21,640
Speaker 2: mind as well you want to utilize those tax brackets.

704
00:33:21,280 --> 00:33:21,959
Speaker 3: Which chill them up.

705
00:33:22,120 --> 00:33:24,840
Speaker 1: Interesting because there was an article I saw the other

706
00:33:24,920 --> 00:33:27,160
Speaker 1: day in the Wall Street Journal and there was a

707
00:33:27,200 --> 00:33:30,680
Speaker 1: study that was done an analysis about one time lump

708
00:33:30,680 --> 00:33:34,640
Speaker 1: sum Roth conversions, and the author of the study basically said, well,

709
00:33:34,640 --> 00:33:38,960
Speaker 1: they could be superior to doing conversions in equal annual installments.

710
00:33:39,240 --> 00:33:41,360
Speaker 1: We'll maybe link that article in the show notes, but

711
00:33:41,400 --> 00:33:43,520
Speaker 1: I'll tell you this, the data was not convincing, like

712
00:33:43,560 --> 00:33:47,040
Speaker 1: the way that they the methodology behind the study. Like

713
00:33:47,080 --> 00:33:48,880
Speaker 1: I read the headline and I was like, wait, huh.

714
00:33:48,920 --> 00:33:51,600
Speaker 1: That kind of flies in the face of the way

715
00:33:51,640 --> 00:33:53,880
Speaker 1: I thought about Was it conversions? Is it based on

716
00:33:54,160 --> 00:33:57,600
Speaker 1: getting money into the market and seeing the tax free growth. No,

717
00:33:58,240 --> 00:34:01,480
Speaker 1: because it doesn't that doesn't have any impact. It was

718
00:34:01,600 --> 00:34:04,959
Speaker 1: it was just based on kind of false assumptions of

719
00:34:05,240 --> 00:34:09,720
Speaker 1: numbers and of tax brackets and of state income taxes

720
00:34:09,760 --> 00:34:10,440
Speaker 1: and stuff like that too.

721
00:34:10,480 --> 00:34:14,440
Speaker 2: It certainly goes against typical financial advisor Yeah, advice to

722
00:34:14,480 --> 00:34:19,399
Speaker 2: pull the trigger, go all in, like Leroy Jenkins, It's

723
00:34:19,480 --> 00:34:21,200
Speaker 2: just like, no, no, you want to be a little more.

724
00:34:21,080 --> 00:34:23,680
Speaker 1: Measured, because if you do a lump sum and you're

725
00:34:23,719 --> 00:34:26,319
Speaker 1: talking about then a big chunk of that money being

726
00:34:26,400 --> 00:34:29,840
Speaker 1: taxed in thirty five thirty seven percent tax rate versus

727
00:34:29,880 --> 00:34:33,680
Speaker 1: being able to keep all your money taxed at you know,

728
00:34:33,760 --> 00:34:37,320
Speaker 1: twelve twenty to twenty four percent tax rates, but by

729
00:34:37,360 --> 00:34:39,400
Speaker 1: just spreading it out over a few years, that's a

730
00:34:39,400 --> 00:34:41,160
Speaker 1: big chunk of money that you save, that you keep

731
00:34:41,200 --> 00:34:44,400
Speaker 1: on hand to grow for your own future. So is

732
00:34:45,000 --> 00:34:46,600
Speaker 1: I was shock seeing the headline. I was like, what

733
00:34:46,800 --> 00:34:49,279
Speaker 1: is there something I don't know? And then I read

734
00:34:49,320 --> 00:34:50,800
Speaker 1: it and I was like, ah, this is.

735
00:34:50,920 --> 00:34:53,560
Speaker 2: This is a bogus Yeah unless yeah, unless I don't know.

736
00:34:53,560 --> 00:34:56,600
Speaker 2: Maybe there's more research. We'll see if our opinion has changed,

737
00:34:56,640 --> 00:34:59,200
Speaker 2: we will talk about it. But also this neglects the

738
00:34:59,200 --> 00:35:00,600
Speaker 2: fact that you may not e you even want to

739
00:35:00,719 --> 00:35:03,000
Speaker 2: convert all of your dollars at the same time, like Basically,

740
00:35:03,080 --> 00:35:04,359
Speaker 2: you might want to hang on to some of your

741
00:35:04,360 --> 00:35:08,600
Speaker 2: traditional IRA funds, let's say, for charitable contributions as a

742
00:35:08,600 --> 00:35:12,400
Speaker 2: way to reduce your tax burden. Those qualified charitable distributions

743
00:35:12,440 --> 00:35:16,839
Speaker 2: count towards required minimum distributions and they're excluded from your

744
00:35:17,239 --> 00:35:20,840
Speaker 2: taxable income. So, you know, trying to turn some of

745
00:35:20,880 --> 00:35:24,439
Speaker 2: those traditional dollars into roth strategically in the coming years,

746
00:35:24,480 --> 00:35:27,040
Speaker 2: I think that can be wise. So I think that

747
00:35:27,080 --> 00:35:29,000
Speaker 2: would be a good reason why you should do it

748
00:35:29,080 --> 00:35:31,600
Speaker 2: in those smaller chunks, and certainly know the benefits of

749
00:35:31,680 --> 00:35:33,960
Speaker 2: keeping some in the traditional IRA as well and not

750
00:35:34,040 --> 00:35:37,400
Speaker 2: going you know, all in all the wroth because so

751
00:35:37,480 --> 00:35:39,239
Speaker 2: many people talk about how great the roth is and

752
00:35:39,960 --> 00:35:42,319
Speaker 2: so many ways it is, but you got to look

753
00:35:42,320 --> 00:35:42,879
Speaker 2: at the whole picture.

754
00:35:43,280 --> 00:35:45,839
Speaker 1: I think a little of a good thing is great,

755
00:35:45,880 --> 00:35:48,120
Speaker 1: then why not a lot of a good thing. Well,

756
00:35:48,239 --> 00:35:50,920
Speaker 1: if you overdo it and you turn everything into roth dollars,

757
00:35:50,960 --> 00:35:54,320
Speaker 1: you are potentially missing out on other ways of saving

758
00:35:54,360 --> 00:35:56,480
Speaker 1: on taxes in the future too, Like you just highlight

759
00:35:56,480 --> 00:36:00,720
Speaker 1: the mat So yeah, take that balanced approach, and really

760
00:36:01,360 --> 00:36:03,400
Speaker 1: this can be depending on how much money we're talking about,

761
00:36:04,080 --> 00:36:07,399
Speaker 1: there can be substantial consequences, like a lot at stake here,

762
00:36:07,440 --> 00:36:09,560
Speaker 1: and so you might find some online calculators to help

763
00:36:09,600 --> 00:36:12,880
Speaker 1: you out, but you also might want to consult a

764
00:36:12,920 --> 00:36:16,000
Speaker 1: financial planner to kind of help you think through this

765
00:36:16,120 --> 00:36:19,160
Speaker 1: well based on your specific circumstances, what you have coming

766
00:36:19,160 --> 00:36:21,400
Speaker 1: down the pike, what's your next six seven years of

767
00:36:21,400 --> 00:36:23,920
Speaker 1: life are going to look like from an income perspective

768
00:36:23,920 --> 00:36:27,279
Speaker 1: in particular. So if that's the case, we would go say,

769
00:36:27,320 --> 00:36:31,440
Speaker 1: go to powdamoney dot com slash advisor and find someone

770
00:36:31,960 --> 00:36:33,759
Speaker 1: there who can help you think through this a little

771
00:36:33,760 --> 00:36:35,600
Speaker 1: bit better. The fee is likely going to be worth

772
00:36:35,640 --> 00:36:37,440
Speaker 1: the taxes you can save, that's right.

773
00:36:37,480 --> 00:36:39,120
Speaker 2: And if you think even more of a good thing

774
00:36:39,400 --> 00:36:41,880
Speaker 2: is a great thing, I would refer you to Gertrude

775
00:36:41,960 --> 00:36:42,440
Speaker 2: m Fuzz.

776
00:36:42,640 --> 00:36:44,399
Speaker 3: But you'll got more to get to. We're gonna talk

777
00:36:44,440 --> 00:36:47,080
Speaker 3: about silver, that and more right after this.

778
00:36:54,960 --> 00:36:56,960
Speaker 1: All right, Matt, we'll back. It's time for the Facebook

779
00:36:57,080 --> 00:36:59,919
Speaker 1: question of the week. This one comes from Nicole. She says,

780
00:37:00,160 --> 00:37:02,480
Speaker 1: I thought about five hundred dollars worth of silver at

781
00:37:02,520 --> 00:37:06,040
Speaker 1: about sixteen dollars an ounce. This was years ago. I

782
00:37:06,040 --> 00:37:07,439
Speaker 1: see precious metals.

783
00:37:07,120 --> 00:37:09,880
Speaker 3: Are way up. Should I wait and hold or should

784
00:37:09,880 --> 00:37:12,879
Speaker 3: I sell? What do you think? Oh yeah, precious metals

785
00:37:12,880 --> 00:37:14,399
Speaker 3: are way up. I've heard.

786
00:37:15,640 --> 00:37:17,840
Speaker 1: I don't like this question, though they've been dominating the headlines.

787
00:37:18,000 --> 00:37:19,200
Speaker 1: You don't think she should be asking.

788
00:37:19,040 --> 00:37:22,279
Speaker 2: This question, well, because it's it's a timing question, right, Like,

789
00:37:22,400 --> 00:37:26,080
Speaker 2: essentially that's what this Well, Shoot, I feel like I'm

790
00:37:26,080 --> 00:37:27,480
Speaker 2: throwing her under the bus a little bit because she

791
00:37:27,480 --> 00:37:29,600
Speaker 2: actually I thought this was an anonymous question. I see

792
00:37:29,640 --> 00:37:31,360
Speaker 2: now that there's a literal name here, so I'll go

793
00:37:31,400 --> 00:37:34,320
Speaker 2: softer on you, Nicole. But like she's asking folks because

794
00:37:34,320 --> 00:37:36,760
Speaker 2: she's hoping that someone is going to tell her, yes,

795
00:37:36,880 --> 00:37:38,719
Speaker 2: this is the top, and this is why they're going

796
00:37:38,760 --> 00:37:40,120
Speaker 2: to provide a convincing argument.

797
00:37:40,160 --> 00:37:42,120
Speaker 3: But nobody knows what the top is.

798
00:37:42,160 --> 00:37:44,600
Speaker 2: Nobody knows if there's about to be if this is

799
00:37:44,600 --> 00:37:48,560
Speaker 2: the beginning of a massive five year silver, gold, palladium,

800
00:37:48,680 --> 00:37:51,960
Speaker 2: whatever run, or if this is the top and we're

801
00:37:51,960 --> 00:37:53,439
Speaker 2: not going to see it this high for another seven

802
00:37:53,480 --> 00:37:56,879
Speaker 2: to eight years. What's your prediction, Matt, that's what There

803
00:37:56,920 --> 00:37:57,520
Speaker 2: is no prediction.

804
00:37:57,560 --> 00:37:59,960
Speaker 3: I know. That's why. Yeah, that's why.

805
00:38:00,920 --> 00:38:04,320
Speaker 1: The premise of the question is something that I question

806
00:38:05,360 --> 00:38:07,719
Speaker 1: question the question. Well, and I think we are starting

807
00:38:07,719 --> 00:38:10,600
Speaker 1: we're starting to see more commercials back in full force convinced.

808
00:38:10,239 --> 00:38:12,680
Speaker 3: People to buy gold. The people are getting hit with

809
00:38:12,680 --> 00:38:13,240
Speaker 3: the marketing.

810
00:38:13,360 --> 00:38:16,360
Speaker 1: People who love golden precious metals are like making the

811
00:38:16,400 --> 00:38:19,719
Speaker 1: podcast rounds trying to sell people on it. And it's

812
00:38:19,880 --> 00:38:21,120
Speaker 1: it's interesting too.

813
00:38:21,239 --> 00:38:21,960
Speaker 3: This question was.

814
00:38:21,880 --> 00:38:25,880
Speaker 1: Asked kind of before the dramatic events of was like

815
00:38:25,880 --> 00:38:28,080
Speaker 1: a week and a half ago when silver took a

816
00:38:28,120 --> 00:38:30,439
Speaker 1: plunge like thirty percent on one day.

817
00:38:30,880 --> 00:38:34,120
Speaker 3: But like, I don't know, I probably like I should

818
00:38:34,120 --> 00:38:36,239
Speaker 3: have sold right then.

819
00:38:36,480 --> 00:38:38,440
Speaker 1: Yeah, but just what I asked, nobody in the Facebook

820
00:38:38,440 --> 00:38:39,840
Speaker 1: group told me to sell, so I didn't know what

821
00:38:39,880 --> 00:38:43,000
Speaker 1: to do. But Nicole, I would say, is fortunate in

822
00:38:43,000 --> 00:38:45,640
Speaker 1: a lot of ways, even with that you know, dramatic drawdown,

823
00:38:46,040 --> 00:38:48,600
Speaker 1: that a five hundred dollars investment is probably worth at

824
00:38:48,680 --> 00:38:52,279
Speaker 1: least fifteen hundred bucks today, and you know, and so

825
00:38:52,760 --> 00:38:55,200
Speaker 1: she's not up nearly as much as she was last week.

826
00:38:55,280 --> 00:38:59,000
Speaker 1: But what she does now, I think it largely depends

827
00:38:59,400 --> 00:39:01,239
Speaker 1: on why she silver in the first place, and that's

828
00:39:01,280 --> 00:39:03,640
Speaker 1: not something she outlined in the question. Yes, but yeah,

829
00:39:03,880 --> 00:39:05,800
Speaker 1: why did you buy it when it was sixteen dollars?

830
00:39:05,880 --> 00:39:06,000
Speaker 3: Now?

831
00:39:06,040 --> 00:39:09,600
Speaker 1: So was it because you were buying it as a

832
00:39:09,640 --> 00:39:11,560
Speaker 1: short term play? As a speculative move or was it

833
00:39:11,600 --> 00:39:14,000
Speaker 1: because you were like, I want a small amount of

834
00:39:14,040 --> 00:39:17,600
Speaker 1: my portfolio to be dedicated to commodities like precious metals,

835
00:39:17,960 --> 00:39:21,280
Speaker 1: and that's something I see as a long term benefit

836
00:39:21,480 --> 00:39:26,480
Speaker 1: from my portfolio from a diversification perspective. And because maybe

837
00:39:26,480 --> 00:39:29,200
Speaker 1: you're thinking about geopolitics and you're like you were reading

838
00:39:29,200 --> 00:39:31,239
Speaker 1: the tea leaves. I don't know, but I think that's

839
00:39:31,320 --> 00:39:33,480
Speaker 1: ultimately to answer this question, you have to go back

840
00:39:33,520 --> 00:39:35,480
Speaker 1: to that fundamental of why you bought it to begin with.

841
00:39:35,719 --> 00:39:37,680
Speaker 2: Yeah, no, no, yeah, So what you're addressing is whether

842
00:39:37,760 --> 00:39:40,680
Speaker 2: or not her investing philosophy has changed, and if so,

843
00:39:41,280 --> 00:39:43,239
Speaker 2: and if you feel differently, Nicole, then yeah, that's a

844
00:39:43,239 --> 00:39:46,960
Speaker 2: good reason to switch, either maybe to get even more

845
00:39:47,000 --> 00:39:50,279
Speaker 2: of it in your portfolio, or if you realize you

846
00:39:50,280 --> 00:39:52,960
Speaker 2: did it because you read a tip somewhere, then okay,

847
00:39:53,040 --> 00:39:56,080
Speaker 2: maybe it painted out. Maybe it worked out for you

848
00:39:56,120 --> 00:39:57,719
Speaker 2: this time, but it may not work out for you

849
00:39:57,719 --> 00:39:59,840
Speaker 2: next time. But then also, I think a lot of

850
00:39:59,880 --> 00:40:02,439
Speaker 2: the comes down to, I mean, do you so that's

851
00:40:02,440 --> 00:40:05,080
Speaker 2: a good reason to potentially sell, And if the market

852
00:40:05,120 --> 00:40:07,000
Speaker 2: happens to be up, then yeah, it's kind of like

853
00:40:07,000 --> 00:40:08,759
Speaker 2: a little bonus right, it's a little cherry on top

854
00:40:09,760 --> 00:40:12,239
Speaker 2: that being said, if you need the money for something else, right, Like,

855
00:40:12,320 --> 00:40:15,680
Speaker 2: let's say that you caching this thing in allows you

856
00:40:15,719 --> 00:40:19,760
Speaker 2: to eliminate your credit card debt where you are, without

857
00:40:19,800 --> 00:40:23,719
Speaker 2: fail guaranteed to be paying twenty three percent. Okay, well,

858
00:40:23,760 --> 00:40:25,000
Speaker 2: I'm going to tell you to go ahead and get

859
00:40:25,040 --> 00:40:27,080
Speaker 2: rid of that thing in order to knock that out.

860
00:40:27,080 --> 00:40:29,120
Speaker 2: So if you have a need in your life and

861
00:40:29,360 --> 00:40:31,480
Speaker 2: it just so happens that this amount of silver, if

862
00:40:31,480 --> 00:40:33,600
Speaker 2: were you to sell it would satisfy that need, I

863
00:40:33,600 --> 00:40:35,960
Speaker 2: think that's totally a great reason to sell as well.

864
00:40:35,960 --> 00:40:40,120
Speaker 2: It's less of a transforms it less into a I'm sorry,

865
00:40:40,200 --> 00:40:42,719
Speaker 2: less from a timing question, and more into like, what

866
00:40:42,800 --> 00:40:46,279
Speaker 2: are the facts of my personal life and does this

867
00:40:46,320 --> 00:40:48,719
Speaker 2: fit with the overall plan that I've got from my life.

868
00:40:48,760 --> 00:40:50,200
Speaker 2: I'd be curious financial goals.

869
00:40:50,000 --> 00:40:50,439
Speaker 3: To know too.

870
00:40:50,480 --> 00:40:53,440
Speaker 1: If this is like physical gold or silver, excuse me,

871
00:40:53,560 --> 00:40:56,600
Speaker 1: or if this is an exchange traded fund like where

872
00:40:56,640 --> 00:41:00,400
Speaker 1: she can sell it immediately, or because there's a lot

873
00:41:00,440 --> 00:41:03,080
Speaker 1: of transaction costs typically in the buying and selling of

874
00:41:03,120 --> 00:41:06,359
Speaker 1: precious metals when they're in physical form, and so that

875
00:41:06,440 --> 00:41:08,680
Speaker 1: could just like selling real estate. Like we talked about

876
00:41:08,680 --> 00:41:11,680
Speaker 1: this recently, it's going to cost you money. And you're

877
00:41:11,680 --> 00:41:14,719
Speaker 1: also asking long term investors, right, whether you're asking people

878
00:41:14,719 --> 00:41:16,520
Speaker 1: in the how to Money Facebook group or you're asking us.

879
00:41:16,920 --> 00:41:19,520
Speaker 1: We are, for the most part, people who think on

880
00:41:19,719 --> 00:41:22,520
Speaker 1: a longer time horizon. So the idea of selling just

881
00:41:22,600 --> 00:41:25,840
Speaker 1: because the price went up significantly doesn't move the needle

882
00:41:25,880 --> 00:41:30,040
Speaker 1: for us. Like we buy stuff, you know, we buy stocks,

883
00:41:30,120 --> 00:41:33,360
Speaker 1: we buy index funds because we expect gains over the

884
00:41:33,400 --> 00:41:37,560
Speaker 1: long run, over decades, even if short term realities don't

885
00:41:37,560 --> 00:41:39,680
Speaker 1: bear that out, and vice versa. Right, even if the

886
00:41:39,719 --> 00:41:42,680
Speaker 1: market's up forty percent year over year or something like that,

887
00:41:42,719 --> 00:41:45,120
Speaker 1: it doesn't mean we're more inclined to sell because we've

888
00:41:45,120 --> 00:41:49,640
Speaker 1: seen a run up. We're really making these investments as

889
00:41:49,800 --> 00:41:50,600
Speaker 1: a long term play.

890
00:41:51,000 --> 00:41:51,640
Speaker 3: That's right. Yeah.

891
00:41:51,640 --> 00:41:54,319
Speaker 2: And if you are turning to silver because of what's

892
00:41:54,360 --> 00:41:57,360
Speaker 2: currently going on from a geopolitical standpoint, just remember that

893
00:41:57,360 --> 00:41:59,839
Speaker 2: when you buy in a crisis, you often buy out

894
00:41:59,840 --> 00:42:02,200
Speaker 2: the peak, and that's not something that just generally doesn't

895
00:42:02,200 --> 00:42:05,040
Speaker 2: put you in a strong position. Nicole as opposed to

896
00:42:05,160 --> 00:42:07,840
Speaker 2: thinking more nerdy about it, and you're like, Okay, I

897
00:42:07,840 --> 00:42:09,239
Speaker 2: want to be diverse sort of like you were saying,

898
00:42:09,560 --> 00:42:11,480
Speaker 2: like you're using your nerdy voice, I could tell you're

899
00:42:11,520 --> 00:42:13,080
Speaker 2: just like, I want a certain part of my portion

900
00:42:13,160 --> 00:42:15,640
Speaker 2: of my portfolio to include international and small cap and

901
00:42:15,719 --> 00:42:17,279
Speaker 2: a little bit of precious metals as well. If that's

902
00:42:17,280 --> 00:42:18,880
Speaker 2: the case, I'm fine. I'm totally fine with that. But

903
00:42:18,960 --> 00:42:22,440
Speaker 2: just remember five percent or less of your overall portfolio

904
00:42:22,480 --> 00:42:25,319
Speaker 2: with these more of these investments, the stuff that you

905
00:42:25,320 --> 00:42:29,319
Speaker 2: can invest in that might end up painting out for

906
00:42:29,360 --> 00:42:32,080
Speaker 2: you or might end up totally bust for sure.

907
00:42:32,200 --> 00:42:35,279
Speaker 1: Yeah, all right, let's get to an email from listener Trip.

908
00:42:35,360 --> 00:42:37,560
Speaker 1: He said, we're looking at selling our house to move,

909
00:42:37,800 --> 00:42:40,520
Speaker 1: but given our interest rate and relatively small mortgage, we

910
00:42:40,680 --> 00:42:43,719
Speaker 1: considered running it out. I've thought about taking out a

911
00:42:43,760 --> 00:42:46,080
Speaker 1: helock of home equity line of credit and using that

912
00:42:46,440 --> 00:42:49,040
Speaker 1: as a down payment for this next house, but some

913
00:42:49,160 --> 00:42:54,160
Speaker 1: googling suggested that it's basically fraud. Would you agree, and

914
00:42:54,200 --> 00:42:57,319
Speaker 1: if so, is there some similar legal or alternative.

915
00:42:57,400 --> 00:43:00,239
Speaker 2: Okay, well, I'm just gonna say flat out, I don't

916
00:43:00,239 --> 00:43:01,680
Speaker 2: think it's fraud, but we'll get to that in a second.

917
00:43:01,680 --> 00:43:03,759
Speaker 2: I want to talk about real estate because I think

918
00:43:03,800 --> 00:43:05,359
Speaker 2: this is a total clutch move.

919
00:43:05,440 --> 00:43:07,080
Speaker 3: Trip keeping that first home.

920
00:43:07,600 --> 00:43:10,120
Speaker 2: I think that can be an amazing personal finance decision

921
00:43:10,160 --> 00:43:12,560
Speaker 2: if you've got great terms, if you're not moving far away,

922
00:43:12,600 --> 00:43:15,239
Speaker 2: and you can manage it yourself. Man, I think it

923
00:43:15,280 --> 00:43:18,000
Speaker 2: just gives you, like all those things combined, and if

924
00:43:18,000 --> 00:43:19,279
Speaker 2: this is something you want to do, first of all,

925
00:43:19,320 --> 00:43:22,080
Speaker 2: let's address that like this it's a lifestyle move as well.

926
00:43:22,120 --> 00:43:25,560
Speaker 2: You're taking on a very on or off kind of

927
00:43:25,600 --> 00:43:28,640
Speaker 2: part time job. Let's just say that. But it gives you,

928
00:43:28,880 --> 00:43:30,800
Speaker 2: with all these things considered, it gives you a higher

929
00:43:30,920 --> 00:43:34,520
Speaker 2: likelihood of being cashally positive from day one. You know

930
00:43:34,640 --> 00:43:37,200
Speaker 2: the home, you know what it needs, you know kind

931
00:43:37,200 --> 00:43:39,719
Speaker 2: of what's on the horizon from a repair standpoint, and

932
00:43:39,760 --> 00:43:42,239
Speaker 2: so that's I don't know, that makes me excited for

933
00:43:42,280 --> 00:43:45,320
Speaker 2: you because this is an approach that we often recommend,

934
00:43:45,400 --> 00:43:48,120
Speaker 2: right like, where you are saving up another down payment

935
00:43:48,320 --> 00:43:52,040
Speaker 2: and then keep that first house around, right like, don't

936
00:43:52,200 --> 00:43:55,080
Speaker 2: roll the equity from that first home into the next one.

937
00:43:55,160 --> 00:43:58,120
Speaker 2: If you can essentially trick yourself into imagining that equity

938
00:43:58,160 --> 00:44:01,759
Speaker 2: in that first home doesn't even exist, man, that's fantastic,

939
00:44:01,960 --> 00:44:05,520
Speaker 2: And this whole operation becomes even more attractive if you've

940
00:44:05,520 --> 00:44:10,440
Speaker 2: got this incredibly low long term debt via that mortgage

941
00:44:10,520 --> 00:44:11,880
Speaker 2: to keep that thing around.

942
00:44:12,040 --> 00:44:15,640
Speaker 1: And let's kind of tackle the legal portion of the question.

943
00:44:15,680 --> 00:44:16,360
Speaker 3: We're not lawyers.

944
00:44:16,600 --> 00:44:19,440
Speaker 1: We're not lawyers, but we will give and closing papers

945
00:44:19,640 --> 00:44:22,279
Speaker 1: are different with all sorts of different products, So this

946
00:44:22,440 --> 00:44:26,440
Speaker 1: is a kind of general answer essentially on this topic.

947
00:44:27,360 --> 00:44:30,120
Speaker 1: Those closing papers are usually full of details that most

948
00:44:30,160 --> 00:44:32,799
Speaker 1: borrowers are not aware of. It's kind of like this

949
00:44:33,360 --> 00:44:36,879
Speaker 1: terms and conditions, right that you scroll down as quickly

950
00:44:36,880 --> 00:44:39,759
Speaker 1: as humanly possible and you just click. Except that's what

951
00:44:39,800 --> 00:44:42,200
Speaker 1: most people do when they take out a heelock or

952
00:44:42,239 --> 00:44:44,800
Speaker 1: a mortgage. Matt, you've been to the closing table. Remember

953
00:44:44,840 --> 00:44:47,640
Speaker 1: how thick that binder papers was? My guess is you

954
00:44:47,640 --> 00:44:48,399
Speaker 1: didn't read all of them?

955
00:44:48,400 --> 00:44:52,480
Speaker 3: Did you? I do think my signing may have taken longer.

956
00:44:52,040 --> 00:44:57,240
Speaker 2: Than maybe Andy's usually giving you the TLDR right exactly,

957
00:44:57,280 --> 00:44:59,319
Speaker 2: But like I tend to be cynical, But no, did

958
00:44:59,360 --> 00:45:01,719
Speaker 2: I read everything clause No?

959
00:45:01,760 --> 00:45:02,919
Speaker 3: Absolutely? Not me neither.

960
00:45:03,320 --> 00:45:05,800
Speaker 1: And you know a lot of helocks they will states

961
00:45:05,880 --> 00:45:08,759
Speaker 1: something about living in a residence for twelve months or

962
00:45:08,800 --> 00:45:10,879
Speaker 1: something like that after taking out the loan, But it's

963
00:45:10,960 --> 00:45:13,680
Speaker 1: it's typically about intent and it's not a legal requirement,

964
00:45:13,800 --> 00:45:16,759
Speaker 1: and so this is something It's funny I did not

965
00:45:16,920 --> 00:45:20,799
Speaker 1: know even that this could be considered fraud, like when

966
00:45:20,840 --> 00:45:22,799
Speaker 1: when I did this back in the day, As as

967
00:45:22,960 --> 00:45:25,200
Speaker 1: listener Trip is alluding to, it's something I've done in

968
00:45:25,239 --> 00:45:28,359
Speaker 1: the past to accelerate being able to buy the new

969
00:45:28,360 --> 00:45:29,960
Speaker 1: place while holding on to the old.

970
00:45:30,000 --> 00:45:31,959
Speaker 3: Proper, They're coming after you, dude, They're gonna be knocking

971
00:45:32,000 --> 00:45:32,399
Speaker 3: on your door.

972
00:45:33,120 --> 00:45:35,160
Speaker 1: Statue of limitations. Baby, I think I'm in the clear

973
00:45:35,200 --> 00:45:35,760
Speaker 1: at this point.

974
00:45:36,440 --> 00:45:40,239
Speaker 2: Well, also, like truly, like it sounds like he's talking

975
00:45:40,239 --> 00:45:42,680
Speaker 2: about it from like the current loan holder, like the

976
00:45:42,719 --> 00:45:44,439
Speaker 2: current helock holder's point of view.

977
00:45:44,560 --> 00:45:45,480
Speaker 3: I don't think they care.

978
00:45:45,360 --> 00:45:47,040
Speaker 2: At all what you do with Like you could literally

979
00:45:47,200 --> 00:45:48,840
Speaker 2: you could use that money to go on vacation.

980
00:45:49,440 --> 00:45:50,160
Speaker 3: You could use it.

981
00:45:50,360 --> 00:45:52,200
Speaker 2: You could you could withdraw it and have it in

982
00:45:52,239 --> 00:45:53,799
Speaker 2: bills and then like put it in a big pile

983
00:45:53,840 --> 00:45:56,560
Speaker 2: and light it on fire like in a dark knight,

984
00:45:56,719 --> 00:45:58,000
Speaker 2: Like like you.

985
00:45:58,680 --> 00:46:00,479
Speaker 1: Can get into sports gambling. So you're content.

986
00:46:00,680 --> 00:46:03,399
Speaker 2: Yeah, guess what, you still owe them that money? Yeah,

987
00:46:03,440 --> 00:46:05,439
Speaker 2: And guess what, they still have a lien on your home.

988
00:46:05,520 --> 00:46:07,839
Speaker 2: So like, I don't think they really care because they

989
00:46:07,880 --> 00:46:08,880
Speaker 2: got their bases covered.

990
00:46:08,920 --> 00:46:10,440
Speaker 3: However, I do.

991
00:46:10,360 --> 00:46:13,799
Speaker 2: Think maybe, and maybe this is assuming the best here out,

992
00:46:13,960 --> 00:46:17,560
Speaker 2: maybe he's talking about the new lender saying, oh, hey,

993
00:46:17,719 --> 00:46:19,279
Speaker 2: where did you get that money? Because there are a

994
00:46:19,320 --> 00:46:23,200
Speaker 2: lot of stipulations and proving where certain money, like larger deposits,

995
00:46:23,200 --> 00:46:24,080
Speaker 2: where that came from.

996
00:46:23,880 --> 00:46:26,319
Speaker 1: And that typically comes down to seasoning, like how old

997
00:46:26,560 --> 00:46:28,160
Speaker 1: that money's been in your account one hundred percent.

998
00:46:28,239 --> 00:46:30,440
Speaker 2: So that's certainly something to be aware of. But if

999
00:46:30,440 --> 00:46:33,279
Speaker 2: you're following the rules, then there's I don't see any

1000
00:46:33,360 --> 00:46:37,680
Speaker 2: reason that using helock funds to use at least a

1001
00:46:37,680 --> 00:46:40,840
Speaker 2: portion of that to fund another down payment, why that

1002
00:46:40,840 --> 00:46:42,520
Speaker 2: would be a problem at all. Yeah, do keep in

1003
00:46:42,520 --> 00:46:44,319
Speaker 2: mind that they're also going to look at your debt

1004
00:46:44,360 --> 00:46:46,960
Speaker 2: to income ratio and guess what happens when you take

1005
00:46:47,000 --> 00:46:50,120
Speaker 2: money out of helock? You owe payments. So is it

1006
00:46:50,239 --> 00:46:51,759
Speaker 2: like a you win some you lose them.

1007
00:46:51,760 --> 00:46:52,239
Speaker 3: I don't know, Like.

1008
00:46:52,280 --> 00:46:54,920
Speaker 2: Yeah, like oh yeah, you gott You've got a big

1009
00:46:54,920 --> 00:46:57,160
Speaker 2: old pile of cash. And so that's something to be

1010
00:46:57,480 --> 00:46:59,319
Speaker 2: aware of as well that the current lender, they're going

1011
00:46:59,400 --> 00:47:01,120
Speaker 2: to want to know all the details and they may

1012
00:47:01,160 --> 00:47:03,520
Speaker 2: not approve of you, but it's not because I don't.

1013
00:47:03,600 --> 00:47:06,000
Speaker 2: I don't think it's because of the current loan holder,

1014
00:47:06,040 --> 00:47:07,680
Speaker 2: the current issuer of the helock.

1015
00:47:07,719 --> 00:47:10,320
Speaker 1: And as far as the seasoning period, typically it's sixty days,

1016
00:47:10,360 --> 00:47:12,319
Speaker 1: and so that's how long how far the lender will

1017
00:47:12,320 --> 00:47:17,279
Speaker 1: look back into your your account history. And so if

1018
00:47:17,320 --> 00:47:19,040
Speaker 1: you take out the money and you put it into

1019
00:47:19,040 --> 00:47:21,479
Speaker 1: your savings account from your helock, that where the money

1020
00:47:21,520 --> 00:47:24,600
Speaker 1: is going to come from for the closing funds, that

1021
00:47:24,880 --> 00:47:26,720
Speaker 1: just make sure you do it more than sixty days

1022
00:47:26,760 --> 00:47:27,280
Speaker 1: in advance.

1023
00:47:27,480 --> 00:47:28,719
Speaker 3: Yeah, so you know, it.

1024
00:47:28,719 --> 00:47:30,640
Speaker 2: Sounds like we're talking about a way to get around it.

1025
00:47:30,920 --> 00:47:32,680
Speaker 2: But like if they cared about where it came from

1026
00:47:32,719 --> 00:47:35,279
Speaker 2: over the past six months or the past year, well

1027
00:47:35,280 --> 00:47:36,600
Speaker 2: they would ask that of you, and they would they

1028
00:47:36,600 --> 00:47:38,319
Speaker 2: would make you prove it. So it's but they don't care.

1029
00:47:38,400 --> 00:47:39,960
Speaker 2: It's just or it's what's whatever it is that they

1030
00:47:40,000 --> 00:47:41,960
Speaker 2: say they do care about. Just the rules right, just

1031
00:47:42,000 --> 00:47:43,400
Speaker 2: the way they do it them is the rules, and

1032
00:47:43,440 --> 00:47:45,040
Speaker 2: so you get to jump through the hoops. It's it's

1033
00:47:45,040 --> 00:47:47,640
Speaker 2: also important, I think to the part of the question

1034
00:47:47,719 --> 00:47:50,719
Speaker 2: that Trip didn't ask, was it's crucial to have a

1035
00:47:50,760 --> 00:47:53,840
Speaker 2: realistic short term payoff timeframe. And so if the Helock

1036
00:47:53,960 --> 00:47:55,640
Speaker 2: is going to be with you for the next decade.

1037
00:47:56,040 --> 00:47:58,680
Speaker 2: It likely means you're you're stretching yourself too far to

1038
00:47:58,680 --> 00:48:00,799
Speaker 2: make this move, and that this isn't good idea for you.

1039
00:48:01,000 --> 00:48:02,879
Speaker 2: But if you can pay it off quickly in two

1040
00:48:03,200 --> 00:48:06,520
Speaker 2: maybe three years with kind of a combination of income

1041
00:48:07,120 --> 00:48:10,480
Speaker 2: and rental income from this property, because hey, you're getting

1042
00:48:10,680 --> 00:48:13,120
Speaker 2: make a lot more in rent then what you're gonna

1043
00:48:13,160 --> 00:48:16,160
Speaker 2: have in expenses on that property, and you really are

1044
00:48:16,239 --> 00:48:18,719
Speaker 2: keen on building wealth as a landlord, then go for it.

1045
00:48:19,280 --> 00:48:21,279
Speaker 2: I just would not be worried about ending up in

1046
00:48:21,280 --> 00:48:23,160
Speaker 2: the slammer or something like that if you if you

1047
00:48:23,200 --> 00:48:25,160
Speaker 2: fail to live up to the letter of the law

1048
00:48:25,560 --> 00:48:28,000
Speaker 2: regarding all the fine print details of the Selock.

1049
00:48:28,200 --> 00:48:29,320
Speaker 3: Totally agree, buddy.

1050
00:48:29,360 --> 00:48:30,680
Speaker 2: Let's get back to the beer that you and I

1051
00:48:30,760 --> 00:48:34,799
Speaker 2: enjoyed during this episode, which was a Serbius. I keep

1052
00:48:34,800 --> 00:48:40,040
Speaker 2: wanting to say, Cerebras Cerberus, Cerberus, Cerberus nocturn which is

1053
00:48:40,040 --> 00:48:43,200
Speaker 2: of like of the of Greek mythology, Cerberus like a

1054
00:48:43,239 --> 00:48:44,000
Speaker 2: multi headed dog.

1055
00:48:44,760 --> 00:48:47,480
Speaker 1: No, that's fluffy from speaking of heavy Is it Cerberus

1056
00:48:47,560 --> 00:48:47,799
Speaker 1: that too?

1057
00:48:47,880 --> 00:48:48,080
Speaker 3: Or no?

1058
00:48:48,440 --> 00:48:52,200
Speaker 2: I guess so, okay, this is a vanilla porter it's

1059
00:48:52,280 --> 00:48:56,200
Speaker 2: like been conditioned on Madagascar vanilla, which I think is

1060
00:48:56,239 --> 00:48:58,160
Speaker 2: the superior of the vanilla's out there.

1061
00:48:58,160 --> 00:48:59,160
Speaker 3: But what do you think of this beer?

1062
00:48:59,200 --> 00:49:01,480
Speaker 1: I think it's also where the vast majority of vanilla

1063
00:49:01,640 --> 00:49:03,400
Speaker 1: in a world comes from, this from Madagascar.

1064
00:49:03,640 --> 00:49:05,960
Speaker 3: Remember there's two types of of the vanilla.

1065
00:49:05,960 --> 00:49:08,520
Speaker 2: There's there's a vanilla from Madagascar, and I forget the

1066
00:49:08,520 --> 00:49:10,040
Speaker 2: other stuff comes from somewhere else, and they have they

1067
00:49:10,040 --> 00:49:11,200
Speaker 2: do have different character profile.

1068
00:49:11,200 --> 00:49:13,160
Speaker 1: Okay, well it wasn't there like that much. There was

1069
00:49:13,200 --> 00:49:15,360
Speaker 1: like a big storm in Madagascar one year and it

1070
00:49:15,400 --> 00:49:18,160
Speaker 1: crushed the vanilla crop, and so vanilla prices went sky high.

1071
00:49:18,200 --> 00:49:20,680
Speaker 1: This was four years three, four years ago something like that,

1072
00:49:20,760 --> 00:49:23,279
Speaker 1: and I just remember, like, you know, a bottle of

1073
00:49:23,360 --> 00:49:26,959
Speaker 1: vanilla went up by four or five x, and people

1074
00:49:27,000 --> 00:49:28,799
Speaker 1: are freaking out. Man, Baking those cookies at home got

1075
00:49:28,800 --> 00:49:30,120
Speaker 1: more expensive there for a hot minute.

1076
00:49:30,280 --> 00:49:32,239
Speaker 2: So the reason I know anything at all about vanilla

1077
00:49:32,320 --> 00:49:35,200
Speaker 2: is we're currently making vanilla extract at home your own.

1078
00:49:35,600 --> 00:49:37,040
Speaker 3: You're just like grabbing the vanilla beans.

1079
00:49:37,040 --> 00:49:40,560
Speaker 2: And one of our daughter really likes making quote unquote

1080
00:49:40,560 --> 00:49:43,440
Speaker 2: potions and cooking and baking and you know, messing with stuff.

1081
00:49:43,480 --> 00:49:46,120
Speaker 2: So we got her some vanilla beans, cut it down

1082
00:49:46,120 --> 00:49:47,920
Speaker 2: the middle, scrape out the you know, the inside what

1083
00:49:47,960 --> 00:49:50,640
Speaker 2: they do on the commercials, you know, and you drop

1084
00:49:50,719 --> 00:49:52,320
Speaker 2: that and the being like the whole thing.

1085
00:49:52,200 --> 00:49:54,000
Speaker 1: In a little Can you get a whole vanilla beans at Aldi?

1086
00:49:54,200 --> 00:49:54,760
Speaker 3: Not at aldy?

1087
00:49:54,800 --> 00:49:56,799
Speaker 2: Okay, this is like a special older don this is

1088
00:49:56,800 --> 00:49:59,040
Speaker 2: for Christmas. Then we got that far and then you

1089
00:49:59,280 --> 00:50:04,040
Speaker 2: evidently ate bourbon in order to pull out those flavors.

1090
00:50:04,080 --> 00:50:06,600
Speaker 3: Sounds right to me. So yeah, I'm not gonna second

1091
00:50:06,600 --> 00:50:06,880
Speaker 3: guess that.

1092
00:50:06,920 --> 00:50:09,200
Speaker 2: Evidently it's going to take six months, but I'm really

1093
00:50:09,200 --> 00:50:12,040
Speaker 2: excited for awesome vanilla come July.

1094
00:50:12,160 --> 00:50:16,040
Speaker 1: Perhaps, Yeah, we'll see that sounds great. So this beer,

1095
00:50:17,000 --> 00:50:18,920
Speaker 1: to me, it was actually light on the vanilla vibes,

1096
00:50:19,000 --> 00:50:20,640
Speaker 1: like it didn't have as much as I thought it was,

1097
00:50:21,200 --> 00:50:22,680
Speaker 1: And I was actually fine with that because I think

1098
00:50:22,760 --> 00:50:26,320
Speaker 1: vanilla is great speaking of like big amounts versus small amounts,

1099
00:50:26,360 --> 00:50:28,279
Speaker 1: and a little bit of vanilla goes a long way

1100
00:50:28,360 --> 00:50:31,400
Speaker 1: for me. And it also had those bitter and roasty

1101
00:50:31,480 --> 00:50:34,319
Speaker 1: notes that a porter, a good porter comes with, and

1102
00:50:34,400 --> 00:50:36,719
Speaker 1: to me, it balanced out really well.

1103
00:50:36,840 --> 00:50:37,920
Speaker 3: It was very well balanced.

1104
00:50:38,000 --> 00:50:39,920
Speaker 2: I was worried that this was going to be like

1105
00:50:40,360 --> 00:50:43,560
Speaker 2: super sweet and it wasn't it was. It was really nice,

1106
00:50:43,960 --> 00:50:47,520
Speaker 2: totally agree, seals super smooth. It reminded me like the vanilla.

1107
00:50:48,120 --> 00:50:51,520
Speaker 2: Maybe not surprising. I'm a pedestrial, like I'm a peasant,

1108
00:50:51,560 --> 00:50:53,680
Speaker 2: so like when I tasted the vanilla, maybe think of

1109
00:50:53,680 --> 00:50:55,719
Speaker 2: milk and so my mind immediately went to like milk

1110
00:50:55,719 --> 00:50:57,880
Speaker 2: stout territory where it's just kind of creamy.

1111
00:50:59,239 --> 00:51:00,200
Speaker 3: Yeah, it was just really good.

1112
00:51:00,239 --> 00:51:02,359
Speaker 2: Man really enjoyed it. Vanilla porter with it being a porter,

1113
00:51:02,480 --> 00:51:05,320
Speaker 2: wasn't overly heavy as well. So you mentioned light on

1114
00:51:05,320 --> 00:51:07,520
Speaker 2: the vanilla, but it was also like light and body

1115
00:51:07,760 --> 00:51:09,840
Speaker 2: as well. Wasn't real thick like the last one we

1116
00:51:09,880 --> 00:51:12,439
Speaker 2: had that was like, oh yeah, sticky, sweet thick.

1117
00:51:13,000 --> 00:51:15,719
Speaker 1: I love a big stout, I do, and I love

1118
00:51:15,760 --> 00:51:18,120
Speaker 1: the flavor that a stout brings, but sometimes you just

1119
00:51:18,120 --> 00:51:19,920
Speaker 1: want something that's a little more accessible and that.

1120
00:51:19,920 --> 00:51:21,960
Speaker 2: Really good flavors but also not too like this is

1121
00:51:22,000 --> 00:51:24,239
Speaker 2: one that I can enjoy a full sixteen ounces of

1122
00:51:24,680 --> 00:51:26,960
Speaker 2: percent very easily, no problem. But yeah, glad you and

1123
00:51:27,000 --> 00:51:28,920
Speaker 2: I got to enjoy this one today. You can find

1124
00:51:28,920 --> 00:51:31,520
Speaker 2: our show notes up on the website at howtomoney dot com.

1125
00:51:31,880 --> 00:51:33,800
Speaker 2: By the way, if you heard any construction noises in

1126
00:51:33,840 --> 00:51:37,000
Speaker 2: the background. There's some workers nearby hammering and cutting away.

1127
00:51:37,120 --> 00:51:41,560
Speaker 2: So please excuse the construction, Please excuse the mess, the

1128
00:51:41,600 --> 00:51:43,719
Speaker 2: audio mess that I was not able to clean up.

1129
00:51:44,920 --> 00:51:47,080
Speaker 2: That's all good, and it's all good. Let's hope they're

1130
00:51:47,120 --> 00:51:48,000
Speaker 2: done with this siding soon.

1131
00:51:48,239 --> 00:51:50,080
Speaker 3: It should be good. All the exterior work. Yeah, all right.

1132
00:51:50,120 --> 00:51:52,480
Speaker 1: That's gonna do it for this episode. Until next time,

1133
00:51:52,680 --> 00:52:05,640
Speaker 1: Best Friends Out and Best Friends Out