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Speaker 1: Welcome to How the Money. I'm Joel and I in Matt.

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Speaker 1: Today we are answering your listener questions. That's right, man,

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Speaker 1: We've got a listener question Monday for you, as well

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Speaker 1: as a belated Merry Christmas to you. It is Monday,

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Speaker 1: the day after Christmas. Is on late Christmas present to you.

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Speaker 1: Sorry we were late to the party. Yeah, we don't

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Speaker 1: release on Sundays, guys, you know that, but yes now

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Speaker 1: we do. In facts have five listener questions to get

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Speaker 1: to today. Man. A couple they are asking whether or

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Speaker 1: not they should get a pre nup. It's been a

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Speaker 1: minute since we've talked about those delving into the relationship

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Speaker 1: and money stuff there exactly. Yeah. Another listener he's wondering

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Speaker 1: if it's okay throw caution to the wind, just follow

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Speaker 1: your heart. Uh. Actually, if there's any answer I would give,

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Speaker 1: it would kind of be the opposite of that. I'm

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Speaker 1: way too logical when it comes to decisions like that personally,

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Speaker 1: like I was saying though. Another listener he's asking he

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Speaker 1: wants to know if it is okay if he combines

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Speaker 1: money gears, And that is an interesting question, not one

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Speaker 1: that we've received before. And money gears by the way.

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Speaker 1: That's our money order of operations, seven of them, and

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Speaker 1: we think you need to go in order. But does

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Speaker 1: Justin get a waiver? Is he the exception to the rule.

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Speaker 1: And then we've got another listener who's asking about a

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Speaker 1: new investing platform, main Vest, whether or not it is legit.

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Speaker 1: So I'm looking forward to getting to that, plus two

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Speaker 1: others today. For sure. I'll get to those in just

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Speaker 1: a second. But I want to say, Matt, a lot

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Speaker 1: of holiday road trips already happened. A lot more holiday

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Speaker 1: road trips you have to come for a lot of people.

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Speaker 1: And you might be listening right now. You might be

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Speaker 1: in the car while driving right now, exactly on the Interstate,

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Speaker 1: on the way home from your mom's house, your grandma's house,

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Speaker 1: something like that. Well, one of the things that we

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Speaker 1: have done, and I didn't even it didn't even I

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Speaker 1: didn't think about it. We have a couple of really

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Speaker 1: old DVDs in the car because we have a DVD

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Speaker 1: player in our O six mini bands. Somehow I didn't

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Speaker 1: realize they were putting those minibands back then, but they were.

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Speaker 1: And so it's certainly not top of the line, but

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Speaker 1: it works. It gets the job done, and we have

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Speaker 1: some old DVDs in the car. They're starting to skip

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Speaker 1: stuff like that. But man, we're at the library the

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Speaker 1: other day and we walked past the kids DVD section

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Speaker 1: and I was like, well, why we don't need those.

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Speaker 1: We don't have a DVD player at home. We wouldn't

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Speaker 1: use that. And I was like, wait a second, wait

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Speaker 1: a minute, road trips, we do have a DVD Yeah,

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Speaker 1: so we got a few for our most recent road trip,

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Speaker 1: and boy, it's it's nice. Y'all are all about the

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Speaker 1: media consumption while on the road, because you talked about

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Speaker 1: getting this CD player though walking for the car as well,

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Speaker 1: because then we get the CDs from the library, the

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Speaker 1: CD audio books, and I just tell my kids to

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Speaker 1: stare out the window, stare out of the fields. Tell

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Speaker 1: me what you see. Puncher brother Stephen hurts, uh No,

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Speaker 1: those are our road trips growing up. But I did

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Speaker 1: y'all checking the exciting movies out from nothing awesome, Okay,

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Speaker 1: you know, like the Original Branch stuff like that. So yeah,

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Speaker 1: that's nice, the kind of stuff you want to watch

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Speaker 1: this time of year. But just a tip word of

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Speaker 1: the wise, I'm not sure if you have a DVD

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Speaker 1: player at your house or in your car. But it

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Speaker 1: makes sense though, yeah, because at home you do not

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Speaker 1: most folks don't have DVD players. You're just streaming. But

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Speaker 1: we're not streaming yet at least, uh, we're not in

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Speaker 1: our vehicle. We don't even have a DVD player. But

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Speaker 1: if you wanted to. Let's say, it makes sense though

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Speaker 1: that the technology and vehicles, it's a little it's lagging

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Speaker 1: a little bit. So it does make sense if you

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Speaker 1: want to cut back on your streaming consumption and you're like, listen,

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Speaker 1: I want to eliminate a service out of my life,

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Speaker 1: but I don't. I'm going to the library twice a month.

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Speaker 1: I'll pick up a DVD for Friday night. I'll get

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Speaker 1: it there and stack up like four of them. Like

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Speaker 1: what's the limit? I mean many as you want, Tommy Boy,

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Speaker 1: you probably there's a lot of you can get it.

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Speaker 1: You can get a bunch, I think. But it's one

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Speaker 1: of those things where like, don't don't sleep on the library.

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Speaker 1: It's still got a lot to offer, DVDs included stuff.

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Speaker 1: But Matt, let's mention the beer we're having on today's episode,

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Speaker 1: This one is called She's My Berry Pie. And it

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Speaker 1: is a dessert sour from the folks over Mutation Brewing,

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Speaker 1: who they're right around the corner from us, and they

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Speaker 1: just launched actually earlier this year. And so Jack for

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Speaker 1: Mutation Brewing actually donated some beers to the show. So

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Speaker 1: Jack thinks you that drinking a lot of his beers.

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Speaker 1: We will, we'll give our thoughts on all of them.

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Speaker 1: We'll give our thoughts on this one at the end

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Speaker 1: of the episode. Most Deaf. But for now, let'sten on

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Speaker 1: to the topic at hand. We're answering listener questions. If

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Speaker 1: you have a question for us, you got how to

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Speaker 1: money dot com slash ask to submit your own and

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Speaker 1: hopefully we can take it on the next ask HTM episode.

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Speaker 1: But Matt, let's let's tack our pre ups first. Hey,

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Speaker 1: Joel Emmette, thanks for the podcast. It's pretty cool. This

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Speaker 1: is Ian and Uh and we're about to get married

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Speaker 1: and we are wondering about pre nuptial agreements. We have

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Speaker 1: a couple of properties, some that were purchased early in

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Speaker 1: the relationship and some that were purchased recently, and we

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Speaker 1: would like you to discuss the pros and cons of

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Speaker 1: getting a pre nup and affordable ways of getting one done.

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Speaker 1: Thank you. So, first of all, Ian and Jin are adorable.

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Speaker 1: We're getting married. I just looked into my crystal ball,

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Speaker 1: by the way, and their marriage is gonna work out.

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Speaker 1: So are things looking Yeah, well that was actually a

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Speaker 1: magic eight ball and it said like all signs point yes.

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Speaker 1: So uh, Ian and Jin, congrats to you both on

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Speaker 1: getting married soon. But first, let's talk about pre nups. Uh.

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Speaker 1: And let's let's talk about specifically what prenups cover, because

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Speaker 1: most folks don't necessarily have a well formed idea of

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Speaker 1: what they are or how it is that they work.

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Speaker 1: It's a word that gets tossed around more and more,

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Speaker 1: but people are like, I'm not sure exactly what it is.

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Speaker 1: What does it do? Yeah? So it is a basic

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Speaker 1: legal document, right like, that you create before getting married,

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Speaker 1: thus the pre nuptials that creates a division of assets. Uh.

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Speaker 1: It can also protect you from taking on your soon

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Speaker 1: to be spouse's debt, which is uh. I think one

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Speaker 1: of the reasons a lot of folks decide to get

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Speaker 1: a pre nup, and more folks they are going the

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Speaker 1: prenup route, right like, largely because of the trend. Honestly too,

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Speaker 1: that there's just folks are getting married later in life, right,

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Speaker 1: and so they've been out on the round. They've been

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Speaker 1: building wealth, potentially amassing rental properties like this couple has

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Speaker 1: in their case together. But if the marriage doesn't work out,

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Speaker 1: they don't necessarily want to lose what it is that

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Speaker 1: they've built. And so from that standpoint, I get it.

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Speaker 1: And plus, you know, the more assets an individual might have, right, basically,

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Speaker 1: the greater disparity on the asset front, or even on

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Speaker 1: the income front, or again on the debt front. If

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Speaker 1: if one, let's say, one partner shows up to the

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Speaker 1: relationship with a ton of assets no debt and the

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Speaker 1: other partner has maybe no assets and a ton of debt,

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Speaker 1: there's a massive disparity there. And in that sense as well,

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Speaker 1: in that case, that could mean that I've prenup might

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Speaker 1: become even more helpful in that situation. So let's go

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Speaker 1: ahead and talk about prenup. So and uh, let's go

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Speaker 1: ahead and tackle the cons first, because we're not necessarily

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Speaker 1: for them. Yeah, they're not our favorite, we'll say that,

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Speaker 1: say that, but that doesn't mean that you shouldn't consider one.

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Speaker 1: And we believe that when you're getting married that you're

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Speaker 1: committing to a lifelong relationship. So your intentions are that

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Speaker 1: that is the case, right when you when you actually

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Speaker 1: go through the process of a marriage ceremony you sign

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Speaker 1: a marriage certificate that that's what you're that's what basically

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Speaker 1: what you're saying out loud, and then what you're committing

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Speaker 1: to and writing as well. But clearly that doesn't always

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Speaker 1: work out, right, something like what more than relationships and

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Speaker 1: a divorce close to half of them, which is sobering.

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Speaker 1: And so, yeah, the the cons of getting a prenup,

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Speaker 1: it's really just that the process itself can create some distrust,

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Speaker 1: which can lead to hurt feelings. I've heard of people

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Speaker 1: getting into the prenup discussion and it doesn't go well, right,

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Speaker 1: and so it actually damages now right exactly, And so

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Speaker 1: it's like, hey, no, this is the thing that's actually

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Speaker 1: going to help us in case things don't work out.

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Speaker 1: But you are so adamant about drawing hard lines and

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Speaker 1: hard boundaries that it does damage to the relationship that

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Speaker 1: you're trying to commit to fostering over the long term.

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Speaker 1: And so yeah, that being said, most folks don't really

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Speaker 1: start talking about money until they get to prenup time.

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Speaker 1: Which means that you're covering a lot of ground at once.

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Speaker 1: Is well. So that's another con is that the first

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Speaker 1: time people start talking about money, it's about drawing type

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Speaker 1: boundaries and it can be a relational hardship. Yeah, they're like,

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Speaker 1: did you go through primatial counseling where you talked about

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Speaker 1: personal finances? And you're like, no, but we did get

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Speaker 1: a pre nup, So I guess does that count exactly?

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Speaker 1: And I think that's why so many of those discussions

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Speaker 1: go poorly. I'm guessing that's not the case for Ian

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Speaker 1: and Gen because they're had money listeners of course, and

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Speaker 1: they it sounds like they handle their money well. I'm

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Speaker 1: sure they're talking about money quite a bit. But if

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Speaker 1: you move forward with getting a prenup, we just stressed

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Speaker 1: the need to communicate a lot through the process and

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Speaker 1: to be tender towards one another, because it can be

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Speaker 1: one of those things where people easily get their feelings

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Speaker 1: hurt and it leads to just long term sour grapes

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Speaker 1: in a relationship and that's not where you want to

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Speaker 1: get things started. Sure, yeah, and I mean and personally too,

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Speaker 1: I just hate the fact that you're laying a foundation

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Speaker 1: for distrust for there to be like a path to

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Speaker 1: take if things don't go perfectly is you know, I

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Speaker 1: think how I am negatively viewing it. But but you know,

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Speaker 1: just last week, like you're talking about community communication and

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Speaker 1: and we talked with Abby Davison and she talked about

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Speaker 1: how even just going through the motions of a prenup

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Speaker 1: but then not actually having it officially signed or having

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Speaker 1: the lawyer draw it up, like, even that can be

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Speaker 1: helpful from the standpoint of what you're say, Angel like

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Speaker 1: in the fact that it encourages communication. So maybe from

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Speaker 1: that standpoint I like it um. But some of the

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Speaker 1: other pros, of course, are just the financial protection that

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Speaker 1: actually getting a prenup that can bring you. Hopefully this

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Speaker 1: prenup it gets made and it never is actually used

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Speaker 1: because you stayed together for the next seventy five years, right,

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Speaker 1: But if that doesn't turn out to be the case,

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Speaker 1: you know, you'll be glad that you carved out some

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Speaker 1: of these important things beforehand. Uh, it makes the divorce

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Speaker 1: process a little less fraught. And so if you're looking

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Speaker 1: to move forward with this, do you need to hire

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Speaker 1: an extensive lawyer? Want to do it properly? Ideally you

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Speaker 1: would each hire your own lawyer, right because each one

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Speaker 1: of those lawyers is exactly is they're representing you and

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Speaker 1: they're advocating for you. But of course that can get

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Speaker 1: exp pensive. So if you want to go the well,

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Speaker 1: let's go the other end of the spectrum. I you're

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Speaker 1: gonna go like the super dirt cheap path. You can

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Speaker 1: find a prenup from a site like Rocket Lawyer, create

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Speaker 1: your own. They've got templates where you just kind of

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Speaker 1: change some the details. Uh, that's possibly cheap, though that

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Speaker 1: may not be the frugal path. Hello prenup dot com.

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Speaker 1: That's actually an interesting site that helps you create a

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Speaker 1: state compliant legal document. And it seems like, honestly like

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Speaker 1: a solid middle of the road choice. But that'll cost

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Speaker 1: you about six hundred bucks. Still cheaper than individual lawyers.

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Speaker 1: Better option for a lot of people. Yeah, and you know,

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Speaker 1: still for the protection the peace of mind, plus the

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Speaker 1: fact that they seem to have a helpful process that

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Speaker 1: seeks to protect both parties involved. I think this could

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Speaker 1: be a good affordable solution for folks. I think so too.

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Speaker 1: And whether or not you out for a prenup ian

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Speaker 1: and gen like be generous with one another inside of marriage.

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Speaker 1: I think this is something that just a little unsolicited

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Speaker 1: marriage advice for me. Even if you decide, according to

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Speaker 1: the prenup, that Ian's student loans are gonna stick with him,

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Speaker 1: or that Jen is going to get a percent of

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Speaker 1: the rental properties that she currently owns in her own name,

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Speaker 1: those hard financial divisions inside of marriage, they don't engender

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Speaker 1: trust and it's not the best recipe for a healthy relationship.

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Speaker 1: So while you know getting a prenup might be the

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Speaker 1: best legal thing for you, it might not be the

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Speaker 1: best relational thing for you. But let's say you decide

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Speaker 1: to go through with that, and you're saying, listen, we

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Speaker 1: can do this, and we can find a way to

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Speaker 1: create a prenup that protects us without getting hurt. Hurt

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Speaker 1: feelings well even inside of marriage, work together to achieve

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Speaker 1: things like debt payoff and future investing goals. And more

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Speaker 1: than anything, we hope you find the convos that you

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Speaker 1: have um about money prior to marriage that they can

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Speaker 1: be a chance to strengthen what you guys have been

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Speaker 1: building and not taking you down the opposite path. Go

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Speaker 1: in with that positive mindset, and you know what this

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Speaker 1: prenup might actually end up being a healthy endeavor, kind

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Speaker 1: of like Matt said, I think it is. It is possible.

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Speaker 1: I think a lot of people go in with it

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Speaker 1: as an attempt to cordon off the things that they own,

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Speaker 1: and and that is what creates hurt feelings. But if

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Speaker 1: you go in with the spirit of general Steve towards

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Speaker 1: one another, I think it can change the game when

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Speaker 1: it comes to creating a prenup, make it a less

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Speaker 1: tense situation. That's right, man. We've got several other questions

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Speaker 1: we're gonna get to during this episode, including a listener

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Speaker 1: he's wondering if he should forego a company match. We'll

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Speaker 1: get to that question plus others right after this. All right,

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Speaker 1: we are back and Matt, let's keep going with our

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Speaker 1: listen our questions. This next one comes from someone who

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Speaker 1: wants to combine money gears, something we've never advised, but

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Speaker 1: will we make an exception in this case. Good morning,

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Speaker 1: Matt and Joel. This is justin from Illinois. I'm calling

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Speaker 1: today because I have questions about my finances. I just

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Speaker 1: started recently listening to your guys this podcast about a

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Speaker 1: month ago, so I started with your most recent I'm

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Speaker 1: working my way backwards just to learn what I can.

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Speaker 1: My question today is I was going through your website

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Speaker 1: and I'm on money Gear number one. I have nothing

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Speaker 1: saved as of right now, and I wanted to know

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Speaker 1: should I combine money Gears one and two starting three

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Speaker 1: year after Christmas is over? For my family, we live

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Speaker 1: check to check and money is tight, but I'm sure

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Speaker 1: I can stretch things if I do my company's match

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Speaker 1: with the four oh one K while still trying to

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Speaker 1: manage the bills. Now, that will probably mean money Gear one.

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Speaker 1: Saving an emergency fund will be a lot harder to

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Speaker 1: do and it will take a while longer. So my

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Speaker 1: question is should I do that or should I just

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Speaker 1: save an emergency fund? Like I said, since I live

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Speaker 1: check to check, i gross about fifty eight grand a year.

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Speaker 1: I'm an hourly employee and that's with no overtime, so

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Speaker 1: I didn't want to include that. But right now I'm

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Speaker 1: on set for two to get about a d K.

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Speaker 1: I hope you guys have a great day, and I

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Speaker 1: hope to hear from you soon. Thank you all right,

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Speaker 1: justin thank you so much for that question, And I'll

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Speaker 1: say it sounds like you are intent on learning more

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Speaker 1: about your personal finances. I think that's great. Uh, we

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Speaker 1: want to You've only been listening to it to us

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Speaker 1: now for a couple of months, but we want you

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Speaker 1: to to keep learning, keep implementing what what it is

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Speaker 1: that you're learning. And by the way, I love that

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Speaker 1: justin he said like he's basically not going to account

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Speaker 1: for those bonuses that he's earning this year. I think

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Speaker 1: it's a great idea to use as windfalls specifically like that,

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Speaker 1: or or windfalls like a tax refund in the early

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Speaker 1: part of next year, just to help supercharge a money

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Speaker 1: goal like debt payoff or an emergency fund accumulation, as

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Speaker 1: opposed to just absorbing that money into his lifestyle. Yeah.

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Speaker 1: I think it's It's one of those behavioral ways to

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Speaker 1: say I'm not going to plan ahead for this one fall,

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Speaker 1: even though it's likely to happen. I'm pretty sure I'm

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Speaker 1: gonna get it. But it's a way to say no, no no, no,

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Speaker 1: I'm gonna pretend like it's not gonna happen. Then when

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Speaker 1: it does, I'm gonna let it super super charge. Like

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Speaker 1: you said, he's gonna something start investing like a madman, right, Yeah,

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Speaker 1: that's what I want to see. Or like, man, the

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Speaker 1: fund is fully funded in one fell swoop or close

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Speaker 1: to it, you know, like it's typically hard to do

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Speaker 1: in one fell swoop. But I agree, Yeah, I think

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Speaker 1: on the specific so of combining money gears number one

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Speaker 1: and two, there's a reason why we want Justin and

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Speaker 1: all of our listeners out there to take care of

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Speaker 1: number one before moving on to the next. Right, does

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Speaker 1: it massively suck to not get a company match on

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Speaker 1: your four oh one? K Yes, yes, it does, even

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Speaker 1: at the detriment of your four oh okay, even though

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Speaker 1: we know Justin that this means that you are leaving

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Speaker 1: like literal free dollars on the table that you will

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Speaker 1: no longer have access to. Again, yeah, which you might

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Speaker 1: think it says a lot for guys like us that

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Speaker 1: we would say leaping free money on the table, don't

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Speaker 1: take advantage of optimized like always get the free money.

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Speaker 1: But this, honestly, this just shows improves how important it

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Speaker 1: is to have that initial emergency fund set up right right,

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Speaker 1: And basically we want Justin to get to the point

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Speaker 1: where he's nabbing that every single paycheck. But first things first, right,

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Speaker 1: because make it your goal justin to you via habitual

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Speaker 1: savings and those one time windfalls to get to the

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Speaker 1: point that you have a minimum of two thousand, four

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Speaker 1: hundred and sixty seven dollars in your savings account. First,

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Speaker 1: and that's because here's why we stress it. It does

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Speaker 1: two things. One, it's a mental relief right to have

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Speaker 1: that cash backstop. It's going to reduce some of those

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Speaker 1: worries of paycheck to paycheck living that you're currently dealing with.

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Speaker 1: And then too, it's going to give you the financial

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Speaker 1: backstop to cover most emergencies that could pop up, preventing

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Speaker 1: you from racking up crappy debts other kinds of debts

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Speaker 1: due to an unexpected emergency expanse Like, we want you

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Speaker 1: to have the mental relief you want, you have the

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Speaker 1: financial relief of having enough stocked away in case the

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Speaker 1: worst possible thing happens and you have you gotta have

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Speaker 1: the money to cover it. But if you're you know,

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Speaker 1: trying to do two things at once, also, you kind

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Speaker 1: of have like divided efforts and you're not going to

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Speaker 1: be able to build that emergency fund nearly as quickly,

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Speaker 1: nearly as effectively. Yeah, you've got to have that margin

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Speaker 1: on hand in the form of an emergency fund in

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Speaker 1: order to handle the just a little bumps that life

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Speaker 1: throws your way. And the fact is when you take

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Speaker 1: that money that instead you should have as cash set

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Speaker 1: aside and you invest that money, well, that's money that

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Speaker 1: you can no longer touch in the short term. Uh,

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Speaker 1: it's locked away for decades. It's locked away. And if

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Speaker 1: you are attempted to draw down on that money, you

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Speaker 1: were going to pay out the nose when it comes

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Speaker 1: to the fees. Taking money from a savings account is

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Speaker 1: way different than trying to take money out of your

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Speaker 1: four one K. Yeah, let alone the fact that you

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Speaker 1: might be withdrawing that money at an inopportune time depending

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Speaker 1: on what the market is doing. Um. But another reason too,

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Speaker 1: like there's a reason why we have the bar set

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Speaker 1: so low for that first money gear that emergency fund

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Speaker 1: of two thousand, four hundred and sixty seven dollars, and

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Speaker 1: that's because we don't want it to take you very

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Speaker 1: long to accomplish that. Um. That should be something even

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Speaker 1: you know, like you said, like you are an hourly worker.

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Speaker 1: And there's there's kind of pros and cons to that,

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Speaker 1: I guess, but essentially we don't want you to spend

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Speaker 1: a ton of time where you're working towards that initial

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Speaker 1: emergency fund, that first money gear. And it's not like

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Speaker 1: we're saying, save about six months worth of expenses before

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Speaker 1: start investing. We're saying, no, no, it's a very small,

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Speaker 1: finite amount of money that you need. Gives you a

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Speaker 1: little bit of breathing, right, yeah, before you start that

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Speaker 1: investing process exactly. And here's the other thing too, use

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Speaker 1: that desire that you have to get that free money

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Speaker 1: to get that match, help that have that there as

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Speaker 1: an incentive for you to pile that money into that

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Speaker 1: emergency fund, maybe even more quickly, knowing that you kind

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Speaker 1: of have that that carrot dangling at the end of

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Speaker 1: the string there. But then in order to achieve this goal,

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Speaker 1: we want you to come up with a plan to

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Speaker 1: get to that point and specifically, like, think through your expenses, right,

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Speaker 1: is there a recurring bill that you can maybe that

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Speaker 1: you can act all together or at least reduce in

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Speaker 1: order to help you to make progress more quickly, Because

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Speaker 1: we would love to see you start cutting ruthlessly on

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Speaker 1: the expenses that aren't your craft beer equivalence in your life.

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Speaker 1: You know you hear us talk about the things that

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Speaker 1: we're willing to splurge on, but everything else we want

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Speaker 1: you to to just cut ruthlessly. Uh. And since you

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Speaker 1: are fairly new here, it might be a good idea

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Speaker 1: to go back and listen to episode to sixty. Uh.

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Speaker 1: This is the episode where we mentioned seven different ways

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Speaker 1: where you can start saving money right now. Like literally,

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Speaker 1: we wanted an episode that folks could listen to where like,

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Speaker 1: by the end of the week you would have had

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Speaker 1: the ability to cut potentially seven big expenses in your life,

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Speaker 1: like literally one every single day. And then hopefully the

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Speaker 1: recent money Wins episode from fellow listeners that you can

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Speaker 1: get your money saving gears turning as well. Not only

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Speaker 1: should it be encouraging, but hopefully there's some some good

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Speaker 1: takeaways for you as well, because for for so many

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Speaker 1: of us, there's just a massive missing knowledge component, you know,

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Speaker 1: thanks to a dearth of personal finance education. But again,

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Speaker 1: we're glad to see that you are remedying that and

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Speaker 1: it sounds like you've got the determination and to get

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Speaker 1: your finances in a in a better spot in Yeah.

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Speaker 1: So basically, when it comes down to it, we would say,

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Speaker 1: do not combine these money gears correct, and I have

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Speaker 1: a feeling that as you continue to make some smart

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Speaker 1: moves and as you start getting ahead with your money,

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Speaker 1: you're gonna find some low hanging fruits in maybe an

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Speaker 1: episode that meant like the one that Matt referenced the

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Speaker 1: seven ways to say money right now to sixty. Yeah,

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Speaker 1: they're gonna help you achieve your money goals more quickly.

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Speaker 1: That they are gonna help you make progress, maybe faster

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Speaker 1: than you thought you could. But trying to tackle both

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Speaker 1: at once, he's going to make it harder to make progress.

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Speaker 1: It's going to divert your attention, and then any financial

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Speaker 1: setbacks that happened in the midst of trying to tackle

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Speaker 1: both at the same time are going to be more

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Speaker 1: difficult to endure. So we'd say cut back where you

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Speaker 1: can come up with that plan and then tackle one

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Speaker 1: at a time. But yeah, we're hoping that three is

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Speaker 1: a year of massive money breakthrough five. And one other

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Speaker 1: thing too. I liked how he said that this is

428
00:20:21,480 --> 00:20:25,119
Speaker 1: something he's planning to implement after Christmas, like after the

429
00:20:25,119 --> 00:20:27,879
Speaker 1: New Years after there's a lot of expenses because what

430
00:20:28,040 --> 00:20:29,920
Speaker 1: you also because he mentioned he's got a family, and

431
00:20:29,960 --> 00:20:31,680
Speaker 1: so I don't know if that means he's just got

432
00:20:31,760 --> 00:20:33,760
Speaker 1: kids or if he's got a significant other or partner

433
00:20:33,760 --> 00:20:35,600
Speaker 1: in the picture as well. But what you don't want

434
00:20:35,600 --> 00:20:38,200
Speaker 1: to do is like right in the middle of the holidays,

435
00:20:38,240 --> 00:20:42,760
Speaker 1: basically be like Christmas is canceled cold Turkey exactly. It

436
00:20:42,840 --> 00:20:45,919
Speaker 1: takes some time not only to share a plan like

437
00:20:46,000 --> 00:20:49,639
Speaker 1: this with your family, with your significant other, but like

438
00:20:49,840 --> 00:20:51,760
Speaker 1: share some of your goals with them. Right. It's not

439
00:20:51,800 --> 00:20:53,639
Speaker 1: just about because what they're going to see is all

440
00:20:53,640 --> 00:20:55,320
Speaker 1: the stuff that you're saying no to, all the stuff

441
00:20:55,359 --> 00:20:57,320
Speaker 1: that you're looking to cut back in your life. But

442
00:20:57,400 --> 00:20:59,600
Speaker 1: what's really important to share with them as well is

443
00:21:00,160 --> 00:21:02,600
Speaker 1: to basically paint a picture of what your life could

444
00:21:02,640 --> 00:21:04,600
Speaker 1: look like where you to start making some of these

445
00:21:04,600 --> 00:21:06,919
Speaker 1: awesome money moves in the future. And that's what you

446
00:21:06,920 --> 00:21:08,720
Speaker 1: need to focus on and make sure that you're able

447
00:21:08,760 --> 00:21:11,080
Speaker 1: to share that with your family as well, not just

448
00:21:11,600 --> 00:21:13,880
Speaker 1: you know, not just about it's not just about deprivation

449
00:21:13,880 --> 00:21:15,480
Speaker 1: and cutting things from your from your life. There could

450
00:21:15,480 --> 00:21:18,960
Speaker 1: be something really helpful too about starting at the beginning

451
00:21:18,960 --> 00:21:21,320
Speaker 1: of a fresh calendar year. And we're actually gonna talk.

452
00:21:21,359 --> 00:21:24,320
Speaker 1: I'm looking forward to this conversation with Katie Milkman about

453
00:21:24,680 --> 00:21:27,080
Speaker 1: what how to use a fresh shart to your advantage

454
00:21:27,080 --> 00:21:28,840
Speaker 1: when it comes to make more progress with your goals,

455
00:21:29,000 --> 00:21:31,040
Speaker 1: when it comes to, of course, for this show, making

456
00:21:31,040 --> 00:21:34,920
Speaker 1: more progress with your money. We're gonna talk with her early, early,

457
00:21:34,960 --> 00:21:36,480
Speaker 1: early in the new year about that. So I'm excited

458
00:21:36,480 --> 00:21:38,000
Speaker 1: about that conversation. But yeah, it's one of tho things

459
00:21:38,000 --> 00:21:39,960
Speaker 1: where you probably don't want to get started December twenty five,

460
00:21:40,400 --> 00:21:42,960
Speaker 1: one more week, right, and then and then you can.

461
00:21:43,200 --> 00:21:45,080
Speaker 1: You're gonna be able to make progress more quickly. But

462
00:21:45,520 --> 00:21:47,920
Speaker 1: let's let's get to our next listener question. This one

463
00:21:47,960 --> 00:21:51,680
Speaker 1: comes from uh, someone who wants to know about why

464
00:21:51,880 --> 00:21:56,240
Speaker 1: their kid can't sign up for our favorite savings accounts. Oh.

465
00:21:56,359 --> 00:21:59,640
Speaker 1: My name is Kelly. I'm from Western Wisconsin, and I

466
00:21:59,680 --> 00:22:06,120
Speaker 1: am calling to ask about savings accounts online for teens

467
00:22:06,440 --> 00:22:10,000
Speaker 1: under eighteen years old. Um. Just this past week, my

468
00:22:10,119 --> 00:22:12,400
Speaker 1: seventeen year old was going to open up a new

469
00:22:12,480 --> 00:22:16,440
Speaker 1: savings and checking account online and after searching you guys

470
00:22:16,520 --> 00:22:20,919
Speaker 1: is well thought out website, we decided on C I

471
00:22:21,000 --> 00:22:24,480
Speaker 1: T or SIT. I'm not really sure what they call themselves,

472
00:22:24,720 --> 00:22:27,560
Speaker 1: but anyway, Um, they had a great rate at three

473
00:22:27,640 --> 00:22:32,240
Speaker 1: point to five and he started filling out the information.

474
00:22:32,880 --> 00:22:37,080
Speaker 1: But because he's not eighteen, he's only seventeen, he did

475
00:22:37,119 --> 00:22:40,399
Speaker 1: not get that option for the high percentage rate. He

476
00:22:40,600 --> 00:22:43,720
Speaker 1: got options for things that were either less than one

477
00:22:43,760 --> 00:22:47,119
Speaker 1: percent or maybe just over one percent. He does have

478
00:22:47,280 --> 00:22:50,520
Speaker 1: over five thousand dollars that he wants to transfer into

479
00:22:50,560 --> 00:22:55,760
Speaker 1: a new savings account. However, you know, I'm wondering, are

480
00:22:55,840 --> 00:22:58,480
Speaker 1: all accounts online like this where you have to be

481
00:22:58,560 --> 00:23:01,320
Speaker 1: eighteen to get these good rates. It's so if you

482
00:23:01,359 --> 00:23:04,240
Speaker 1: could let us know, that would be great. Thanks so much.

483
00:23:04,480 --> 00:23:08,119
Speaker 1: Happy holidays, Yes, yes, happy holidays to you, Kelly, and

484
00:23:08,119 --> 00:23:10,800
Speaker 1: I hope you had a great Christmas and hope you

485
00:23:10,880 --> 00:23:13,399
Speaker 1: are set to have a happy new year. Yeah, and Matt,

486
00:23:13,400 --> 00:23:16,160
Speaker 1: Wisconsin one of my all time favorite states. Yes, yeah,

487
00:23:16,280 --> 00:23:18,920
Speaker 1: I love I've visited there so many times. Just Washington

488
00:23:18,920 --> 00:23:21,359
Speaker 1: and Oregon were like your favorite favorite those too, But

489
00:23:21,440 --> 00:23:24,760
Speaker 1: if there's something about the they're all favorite, none of them. Know,

490
00:23:24,880 --> 00:23:28,080
Speaker 1: there's something specifically about the people in Wisconsin that's so phenomenal.

491
00:23:28,160 --> 00:23:29,880
Speaker 1: I just I don't think I've been to a state

492
00:23:29,920 --> 00:23:32,640
Speaker 1: where people are nicer than salt of the earth kind

493
00:23:32,640 --> 00:23:34,840
Speaker 1: of people. Yeah, I feel like like where we live

494
00:23:34,920 --> 00:23:37,440
Speaker 1: in the South, it gets kind of top billing for

495
00:23:37,600 --> 00:23:40,880
Speaker 1: most conscientious, nice folks. But and it's not that that's

496
00:23:41,000 --> 00:23:44,280
Speaker 1: doesn't isn't true to some extent, but Wisconsin Nights they

497
00:23:44,320 --> 00:23:46,640
Speaker 1: take it for me. They've got that Canadian niceness going

498
00:23:46,680 --> 00:23:50,159
Speaker 1: on basically as well. It's like so genuine and so sweet.

499
00:23:50,400 --> 00:23:52,960
Speaker 1: And plus they got new Glarius up there. Yeah, great

500
00:23:52,960 --> 00:23:55,320
Speaker 1: beer up there too. And Kelly, by the way, the bank, yes,

501
00:23:55,440 --> 00:23:57,000
Speaker 1: is called c I T and it's a great one.

502
00:23:57,359 --> 00:24:00,000
Speaker 1: But also yes, a minor is not going to qualify

503
00:24:00,160 --> 00:24:02,320
Speaker 1: for the rates that you see marketed or that you

504
00:24:02,400 --> 00:24:04,920
Speaker 1: hear us talking about. They're going to need to open

505
00:24:04,960 --> 00:24:08,199
Speaker 1: a different kind of account, either a custodial or a

506
00:24:08,280 --> 00:24:11,280
Speaker 1: joint account. Basically, you're going to need to go in

507
00:24:11,320 --> 00:24:14,119
Speaker 1: together on whatever account that he opens, at least for

508
00:24:14,200 --> 00:24:17,560
Speaker 1: the time being. That's right, at least until he turns eight. Team.

509
00:24:18,119 --> 00:24:20,280
Speaker 1: So how is it that your son can get the

510
00:24:20,320 --> 00:24:24,240
Speaker 1: best rate on his savings. Let's cover a few options first.

511
00:24:24,560 --> 00:24:27,840
Speaker 1: Many local credit unions they do a great job when

512
00:24:27,840 --> 00:24:31,520
Speaker 1: it comes to offering killer returns for younger savers. And

513
00:24:31,560 --> 00:24:34,800
Speaker 1: so because credit unions have a much tighter community angle

514
00:24:34,840 --> 00:24:36,800
Speaker 1: to what it is that they do. This is something

515
00:24:36,840 --> 00:24:40,119
Speaker 1: that many of them prioritize. So we would recommend that

516
00:24:40,160 --> 00:24:42,600
Speaker 1: you do some some researching, do some looking around for

517
00:24:42,640 --> 00:24:45,960
Speaker 1: credit unions in your area, UH, and you might find

518
00:24:46,040 --> 00:24:48,440
Speaker 1: that they're paying something like the like in the four

519
00:24:48,480 --> 00:24:52,440
Speaker 1: plus percent range for savings accounts for miners. If you

520
00:24:52,480 --> 00:24:54,320
Speaker 1: look around, I think you're going to be bound to

521
00:24:54,320 --> 00:24:57,080
Speaker 1: find one or two because like, the reason that they

522
00:24:57,080 --> 00:24:59,679
Speaker 1: do this as well is because they are hoping to

523
00:24:59,720 --> 00:25:02,399
Speaker 1: find customers for life, essentially because they know that we

524
00:25:02,440 --> 00:25:05,359
Speaker 1: are creatures of habit. Uh. And in particular, you start

525
00:25:05,600 --> 00:25:08,120
Speaker 1: banking with well not you know, I guess it's technically

526
00:25:08,119 --> 00:25:11,879
Speaker 1: not banking, but credit union, you join, You joined the union,

527
00:25:12,320 --> 00:25:14,600
Speaker 1: and uh, you have a good experience, you're likely going

528
00:25:14,640 --> 00:25:17,520
Speaker 1: to be a customer for life. And since credit unions

529
00:25:17,560 --> 00:25:20,200
Speaker 1: are the bomb specifically when it comes to borrowing, it's

530
00:25:20,200 --> 00:25:23,480
Speaker 1: not a bad idea for him to have an account there. Regardless.

531
00:25:23,920 --> 00:25:27,960
Speaker 1: We we always talk about how like the midsized the

532
00:25:28,000 --> 00:25:31,160
Speaker 1: mid two big banks in particular online, they often offer

533
00:25:31,280 --> 00:25:34,880
Speaker 1: the best interest rates when it comes to savings accounts,

534
00:25:34,920 --> 00:25:37,200
Speaker 1: but they don't offer the best rates when it comes

535
00:25:37,240 --> 00:25:39,480
Speaker 1: to borrowing money. And so if and I think you

536
00:25:39,520 --> 00:25:42,280
Speaker 1: specifically meet online banks, online banks because the big banks

537
00:25:42,440 --> 00:25:44,960
Speaker 1: do not offer great anything, right, Well, I mean, I

538
00:25:45,000 --> 00:25:47,080
Speaker 1: guess I'm like, in my mind, Marcus, like, that's one

539
00:25:47,080 --> 00:25:49,800
Speaker 1: of those bigger banks that's online who still have a

540
00:25:50,080 --> 00:25:52,920
Speaker 1: small compared to the big four banks. Yeah, not not

541
00:25:53,000 --> 00:25:55,760
Speaker 1: one of the big four that we disparage so often.

542
00:25:55,920 --> 00:25:58,399
Speaker 1: But I looked it up a CU. They are a

543
00:25:58,400 --> 00:26:00,560
Speaker 1: local credit union in our area, and and they are

544
00:26:00,600 --> 00:26:03,719
Speaker 1: totally exactly like I said. They're paying four percent on

545
00:26:03,960 --> 00:26:07,159
Speaker 1: their their kid accounts them like Safari accounts, that kind

546
00:26:07,160 --> 00:26:09,320
Speaker 1: of thing. Credit unions in particular are a great place

547
00:26:09,320 --> 00:26:11,520
Speaker 1: to turn when you're trying to find an account for

548
00:26:11,560 --> 00:26:14,199
Speaker 1: a kid that offers better turn and usually up to

549
00:26:14,240 --> 00:26:17,080
Speaker 1: a smaller limit, right, something like three or five thousand dollars,

550
00:26:17,119 --> 00:26:20,440
Speaker 1: which is exactly where Kelly's son is at. Another option

551
00:26:20,480 --> 00:26:22,399
Speaker 1: to though, Kelly, that will mention. We talked about Capital

552
00:26:22,480 --> 00:26:25,720
Speaker 1: one as a great option for a child's savings account

553
00:26:25,800 --> 00:26:27,879
Speaker 1: not too long ago. They've made that like kind of

554
00:26:27,880 --> 00:26:29,920
Speaker 1: like a main part of their business. So what we say,

555
00:26:29,960 --> 00:26:33,120
Speaker 1: that's another one worth looking into. Sadly, they're only paying

556
00:26:33,160 --> 00:26:35,639
Speaker 1: point three percent, so not nearly that four percent rate

557
00:26:35,680 --> 00:26:39,000
Speaker 1: that Matt's talking about on for folks in this age range.

558
00:26:39,359 --> 00:26:41,480
Speaker 1: But that's just not even close. That's not in the

559
00:26:41,560 --> 00:26:43,679
Speaker 1: range of the top accounts that we keep referring to.

560
00:26:44,280 --> 00:26:46,400
Speaker 1: But here's the other thing. They actually they have a

561
00:26:46,440 --> 00:26:49,600
Speaker 1: capital one has a performance savings account that's paying around

562
00:26:49,640 --> 00:26:52,600
Speaker 1: three percent right now. And that's something that your son

563
00:26:52,640 --> 00:26:55,600
Speaker 1: should be able to easily transition into after his next birthday.

564
00:26:55,600 --> 00:26:58,080
Speaker 1: Because he's seventeen now, he's gonna be a teen sooner

565
00:26:58,200 --> 00:27:00,119
Speaker 1: rather than later. And so, yeah, is he gonna us

566
00:27:00,160 --> 00:27:04,800
Speaker 1: out on some earnings for a number of months, Yes

567
00:27:04,920 --> 00:27:07,679
Speaker 1: he is, but it's gonna get him started banking with

568
00:27:07,760 --> 00:27:09,960
Speaker 1: an online bank that's one of our favorites. That's really

569
00:27:09,960 --> 00:27:12,359
Speaker 1: good where he could mean an account for years to

570
00:27:12,400 --> 00:27:15,600
Speaker 1: come that pays a good rate of interest. That is

571
00:27:15,880 --> 00:27:17,280
Speaker 1: a good place for him to be long term. So

572
00:27:17,320 --> 00:27:20,000
Speaker 1: I think both of those are really good options. That's right.

573
00:27:20,240 --> 00:27:22,760
Speaker 1: And one other thing to think about, Kelly, we want

574
00:27:22,760 --> 00:27:25,080
Speaker 1: you to ask the question, should your son be investing

575
00:27:25,359 --> 00:27:28,879
Speaker 1: instead of just saving his money? Because five thousand bucks,

576
00:27:28,920 --> 00:27:31,920
Speaker 1: that's uh, that's quite a bit of money. Uh, And

577
00:27:32,040 --> 00:27:35,879
Speaker 1: if the money he's been accumulating is earned income. According

578
00:27:35,920 --> 00:27:39,040
Speaker 1: to the I R S he is eligible to contribute

579
00:27:39,040 --> 00:27:41,600
Speaker 1: to a roth ira A means did that money come

580
00:27:41,680 --> 00:27:46,880
Speaker 1: from a job instead of from like president exactly gifts. Yeah,

581
00:27:46,920 --> 00:27:50,000
Speaker 1: And so getting him getting your son started all his

582
00:27:50,080 --> 00:27:53,000
Speaker 1: investing journey at this young age could be a game

583
00:27:53,080 --> 00:27:57,159
Speaker 1: changer for his financial future. Assuming he's got most of

584
00:27:57,240 --> 00:27:59,840
Speaker 1: his larger financial goals things he might be saving for

585
00:28:00,000 --> 00:28:01,720
Speaker 1: are out of the way, well, then maybe this is

586
00:28:01,760 --> 00:28:04,120
Speaker 1: money that he doesn't necessarily need to touch anytime soon.

587
00:28:04,440 --> 00:28:06,439
Speaker 1: But that being said, I'm I'm guessing he's probably not

588
00:28:06,440 --> 00:28:08,680
Speaker 1: gonna want to invest all of the money. He probably

589
00:28:08,680 --> 00:28:11,119
Speaker 1: doesn't want to start maybe spending some of it in

590
00:28:11,160 --> 00:28:13,639
Speaker 1: the near future. But that being said, five thousand dollars

591
00:28:13,640 --> 00:28:16,480
Speaker 1: invested now, it could easily grow and compound to over

592
00:28:16,520 --> 00:28:19,919
Speaker 1: a hundred thousand dollars in forty years time. We'll actually

593
00:28:20,040 --> 00:28:22,120
Speaker 1: linked to a nerd while a calculator in our show

594
00:28:22,160 --> 00:28:24,480
Speaker 1: notes so that he can just plug in some of

595
00:28:24,520 --> 00:28:27,639
Speaker 1: the numbers, kind of crunch the numbers, see what could

596
00:28:27,680 --> 00:28:30,840
Speaker 1: possibly be Not only were he just to invest that money,

597
00:28:30,880 --> 00:28:32,399
Speaker 1: but what if he had a little bit too that

598
00:28:32,440 --> 00:28:35,280
Speaker 1: every single year, especially for somebody who might be more

599
00:28:35,920 --> 00:28:39,040
Speaker 1: mathematically inclined. I think that could go a really long way.

600
00:28:39,080 --> 00:28:43,000
Speaker 1: Just another reason that it's investing. The younger you are

601
00:28:43,000 --> 00:28:45,040
Speaker 1: start investing, the more powerful it is because you have

602
00:28:45,080 --> 00:28:47,800
Speaker 1: more years for that money to work on your behalf exactly. Yeah.

603
00:28:47,840 --> 00:28:49,880
Speaker 1: And so you know, one other thing too worth mentioning

604
00:28:49,920 --> 00:28:51,600
Speaker 1: here is like, like we're talking through some of the

605
00:28:51,680 --> 00:28:55,400
Speaker 1: more official paths that he can take, these official accounts

606
00:28:55,400 --> 00:28:59,479
Speaker 1: that banks are are offering, but consider a match. So

607
00:28:59,600 --> 00:29:02,040
Speaker 1: for every dollar that he is willing to invest, maybe

608
00:29:02,080 --> 00:29:06,160
Speaker 1: you match that. Maybe you offercent for every single dollar. Right,

609
00:29:06,160 --> 00:29:08,480
Speaker 1: so if if he invests two thousand dollars, guess what

610
00:29:08,680 --> 00:29:11,720
Speaker 1: now that two thousand dollars says automatically turned into four

611
00:29:11,760 --> 00:29:15,280
Speaker 1: thousand dollars. But anyway that you're able to like teach

612
00:29:15,320 --> 00:29:18,560
Speaker 1: some of these real world lessons, uh they're at home,

613
00:29:18,600 --> 00:29:20,600
Speaker 1: I think can go a really long way because like,

614
00:29:20,640 --> 00:29:23,600
Speaker 1: truly the this is how the real world works. The

615
00:29:23,640 --> 00:29:25,480
Speaker 1: ability for him to get a match at an employer,

616
00:29:25,560 --> 00:29:27,200
Speaker 1: this is a lesson that's going to stick with him.

617
00:29:27,200 --> 00:29:29,720
Speaker 1: He may not get one of every dollar that he

618
00:29:30,360 --> 00:29:32,840
Speaker 1: that he ever invests, it's not quite like that. But

619
00:29:33,120 --> 00:29:35,280
Speaker 1: let's say, for instance, he's saving up for a car

620
00:29:35,560 --> 00:29:38,000
Speaker 1: or something like that, even though that's not an investment,

621
00:29:38,040 --> 00:29:41,200
Speaker 1: I still think that that can help to reinforce. Essentially,

622
00:29:41,200 --> 00:29:43,440
Speaker 1: you're mirroring some of these lessons in some of the

623
00:29:43,440 --> 00:29:45,760
Speaker 1: way the world actually works, and I think that could

624
00:29:45,800 --> 00:29:48,960
Speaker 1: go a really long ways and helping to transform your

625
00:29:48,960 --> 00:29:52,480
Speaker 1: son into a saver into an investor. I think those

626
00:29:52,560 --> 00:29:56,560
Speaker 1: lessons could go much further than uh maybe a like

627
00:29:56,600 --> 00:29:58,959
Speaker 1: a youth savings account that's offering like a little bit

628
00:29:58,960 --> 00:30:01,920
Speaker 1: better and yeah than what the typical that's a small thing.

629
00:30:02,000 --> 00:30:04,239
Speaker 1: But if you, as a parent can help incentivize them,

630
00:30:04,280 --> 00:30:07,479
Speaker 1: if you have the financial means exact to provide that

631
00:30:07,520 --> 00:30:09,920
Speaker 1: match to kind of push him in the right direction,

632
00:30:10,240 --> 00:30:12,280
Speaker 1: but help them to see the benefits in a real

633
00:30:12,320 --> 00:30:15,320
Speaker 1: tangible way. That's powerful, right, And that's also not just

634
00:30:15,400 --> 00:30:18,840
Speaker 1: powerful for his money, is powerful for how he thinks

635
00:30:18,880 --> 00:30:22,760
Speaker 1: about investing and how he approaches money in the future.

636
00:30:22,800 --> 00:30:25,720
Speaker 1: Those are incredibly valuable lessons for sure. So best of

637
00:30:25,800 --> 00:30:27,920
Speaker 1: luck to Ukali. Hope you find a great savings account

638
00:30:28,000 --> 00:30:30,160
Speaker 1: or or a great investment account, a great place for

639
00:30:30,200 --> 00:30:32,680
Speaker 1: him to open up. A Wrath Vanguard, Fidelity SWAB, those

640
00:30:32,720 --> 00:30:35,520
Speaker 1: are a few of the places that we think that

641
00:30:35,720 --> 00:30:38,800
Speaker 1: low costs they provided prioritize low costs, low fees, and

642
00:30:38,800 --> 00:30:40,560
Speaker 1: they'll be great places for him to have his money

643
00:30:40,560 --> 00:30:43,400
Speaker 1: growing for him for years, in decades to come, for

644
00:30:43,440 --> 00:30:46,440
Speaker 1: the rest of his life. Exactly. So are We got

645
00:30:46,480 --> 00:30:48,800
Speaker 1: a few more listener questions to get to, Matt, including

646
00:30:49,160 --> 00:30:53,000
Speaker 1: one about where to put money that you've is pretty

647
00:30:53,040 --> 00:30:55,760
Speaker 1: soon you've got to start using it to pay for school.

648
00:30:56,040 --> 00:31:07,800
Speaker 1: We'll get to that and more right after this. Alright,

649
00:31:07,840 --> 00:31:10,960
Speaker 1: we're back from the break taking listener questions and the

650
00:31:11,080 --> 00:31:12,920
Speaker 1: jol like you alldded to. We will get to that

651
00:31:13,000 --> 00:31:16,400
Speaker 1: question about paying for higher education, but first let's hear

652
00:31:16,400 --> 00:31:21,840
Speaker 1: from a listener who's asking about investing in small businesses. Hey, guys,

653
00:31:21,840 --> 00:31:25,000
Speaker 1: this is Martina calling from Brooklyn. I recently discovered Mainvest

654
00:31:25,080 --> 00:31:28,200
Speaker 1: and was interested in their crowdfunding model for small local businesses.

655
00:31:28,600 --> 00:31:31,400
Speaker 1: It feels almost like a for profit micro lending platform,

656
00:31:31,440 --> 00:31:34,240
Speaker 1: similar to Kiva, which I've had good experiences with but

657
00:31:34,360 --> 00:31:37,080
Speaker 1: did more out of charity rather than profit motives. I

658
00:31:37,120 --> 00:31:39,160
Speaker 1: knew you guys have not been fans of other alternative

659
00:31:39,160 --> 00:31:41,640
Speaker 1: investments like fund rise or master Works to the high

660
00:31:41,800 --> 00:31:44,280
Speaker 1: risk and fees, but the fees at MA invest appear

661
00:31:44,320 --> 00:31:46,840
Speaker 1: to be paid by the businesses raising money and investing

662
00:31:46,840 --> 00:31:49,400
Speaker 1: in local businesses seems like it might be less risky

663
00:31:49,400 --> 00:31:52,120
Speaker 1: since you might already know the proprietors or the business itself.

664
00:31:52,480 --> 00:31:54,880
Speaker 1: Would love to get your thoughts on this idea, All right,

665
00:31:54,880 --> 00:31:57,240
Speaker 1: Matt this I like this question a lot from Martina,

666
00:31:57,400 --> 00:32:00,560
Speaker 1: and it's a good one for so many reasons. And one,

667
00:32:00,720 --> 00:32:03,000
Speaker 1: I think it kind of sounds fun to invest in

668
00:32:03,040 --> 00:32:06,160
Speaker 1: small businesses and to take a flyer on something that

669
00:32:06,320 --> 00:32:08,600
Speaker 1: sounds really neat, like sounds like you're a part of

670
00:32:08,640 --> 00:32:10,960
Speaker 1: the community, right as opposed to like I'm going to

671
00:32:11,080 --> 00:32:14,760
Speaker 1: help Apple manufacture there one trillionth iPhone like that doesn't

672
00:32:14,760 --> 00:32:18,120
Speaker 1: sound really nearly as nearly as fun or energizing to

673
00:32:18,160 --> 00:32:20,600
Speaker 1: me as an investor. So I get the impetus behind

674
00:32:20,600 --> 00:32:24,040
Speaker 1: this question, and I like the idea too. I want

675
00:32:24,080 --> 00:32:27,160
Speaker 1: to say, of how the money listeners launching their own

676
00:32:27,200 --> 00:32:30,040
Speaker 1: small business right, especially if they're able to get it

677
00:32:30,080 --> 00:32:33,400
Speaker 1: out of talk about that instead, let's just grap Martine's questions. No,

678
00:32:33,560 --> 00:32:34,960
Speaker 1: there's a lot to answer, I think on the question.

679
00:32:35,000 --> 00:32:39,160
Speaker 1: But but if people are able to launch their own business,

680
00:32:39,320 --> 00:32:41,600
Speaker 1: and and especially while they have a full time job

681
00:32:41,800 --> 00:32:43,840
Speaker 1: to be able to get it up and running during

682
00:32:43,880 --> 00:32:46,040
Speaker 1: that period, kind of that overlap period that helps you

683
00:32:47,000 --> 00:32:50,600
Speaker 1: establish the business model and make sure that it can

684
00:32:50,600 --> 00:32:52,560
Speaker 1: be successful. It takes some of the pressure off and

685
00:32:52,600 --> 00:32:55,320
Speaker 1: it can create like a longer runway, that longer timeline

686
00:32:55,640 --> 00:32:59,640
Speaker 1: for their business to become successful. That is awesome, Like,

687
00:32:59,640 --> 00:33:02,240
Speaker 1: that's what we're all about. But what about investing in

688
00:33:02,280 --> 00:33:05,760
Speaker 1: the small businesses that other folks are starting. That's that's

689
00:33:05,760 --> 00:33:07,640
Speaker 1: a different kind of worms. That's what Martine is asking

690
00:33:07,720 --> 00:33:11,440
Speaker 1: about here. Yeah, and you know, we're not hating on

691
00:33:11,520 --> 00:33:14,120
Speaker 1: the idea, but let's talk about what we would prefer

692
00:33:14,160 --> 00:33:16,120
Speaker 1: for you to do first. I feel like a bunch

693
00:33:16,120 --> 00:33:17,959
Speaker 1: of the answers we've given today have to do with

694
00:33:18,040 --> 00:33:21,640
Speaker 1: the order in which you are doing things. And Martino like, really,

695
00:33:21,760 --> 00:33:24,760
Speaker 1: we want you to be contributing quite a bit first

696
00:33:24,960 --> 00:33:28,640
Speaker 1: to your tax advantaged accounts, investing in playing vanilla index

697
00:33:28,680 --> 00:33:32,080
Speaker 1: funds or target date funds who are invested in hundreds,

698
00:33:32,160 --> 00:33:35,320
Speaker 1: if not thousands, of companies like Apple, like you mentioned

699
00:33:35,360 --> 00:33:38,800
Speaker 1: Joel making their you know, Traillian iPhone um, Like investing

700
00:33:38,800 --> 00:33:41,040
Speaker 1: in small local businesses like that shouldn't be on your

701
00:33:41,120 --> 00:33:45,000
Speaker 1: radar at all, unless you're crushing contributions to a four

702
00:33:45,040 --> 00:33:48,480
Speaker 1: one K, unless you are contributing to also like a

703
00:33:48,720 --> 00:33:51,160
Speaker 1: roth ira, or or even in hs A if you

704
00:33:51,200 --> 00:33:54,000
Speaker 1: have a high deductible healthcare plan, all of the above

705
00:33:54,240 --> 00:33:58,560
Speaker 1: would be even better before you consider investing in small businesses.

706
00:33:59,000 --> 00:34:02,240
Speaker 1: So basically, while investing in small businesses that do cool

707
00:34:02,240 --> 00:34:04,400
Speaker 1: stuff that might be fun, make sure that you are

708
00:34:04,440 --> 00:34:06,920
Speaker 1: doing the boring stuff first. Make sure you've got your

709
00:34:07,000 --> 00:34:11,040
Speaker 1: your basics covered, eating your kale before you move on

710
00:34:11,160 --> 00:34:13,719
Speaker 1: to that. My kids are always asking about dessert, but

711
00:34:13,719 --> 00:34:15,640
Speaker 1: it's like, you gotta eat the veggies first, right, And

712
00:34:15,680 --> 00:34:17,840
Speaker 1: that's kind of what what Matt saying here, Martinez, that

713
00:34:17,880 --> 00:34:21,080
Speaker 1: you gotta eat eat your investing veggies first by investing

714
00:34:21,080 --> 00:34:24,080
Speaker 1: in index ones and by prioritizing those long term retirement

715
00:34:24,120 --> 00:34:26,520
Speaker 1: accounts first. And so if you're if you're crushing it

716
00:34:26,520 --> 00:34:28,840
Speaker 1: on that front, then this becomes more of a conversation.

717
00:34:28,840 --> 00:34:31,320
Speaker 1: But if you're doing not well, then you've got to

718
00:34:31,360 --> 00:34:33,239
Speaker 1: get that on lockdown first. You've got to make sure

719
00:34:33,480 --> 00:34:35,880
Speaker 1: you're getting the match and more in your workplace retirement

720
00:34:35,880 --> 00:34:37,799
Speaker 1: account and that you're maxing out even just a roth

721
00:34:37,880 --> 00:34:41,680
Speaker 1: IRA in addition, maybe even in hs A. Well, yeah,

722
00:34:41,800 --> 00:34:44,080
Speaker 1: if you're doing all the above, then investing some of

723
00:34:44,120 --> 00:34:47,240
Speaker 1: your dollars into a burgeoning small business that sounds really interesting.

724
00:34:47,320 --> 00:34:50,719
Speaker 1: It's not a terrible idea. I kind of prefer that

725
00:34:50,800 --> 00:34:54,400
Speaker 1: to consuming more right and saying like, oh, hey, guess what,

726
00:34:54,440 --> 00:34:56,239
Speaker 1: I'm crushing it on these other other things. I really

727
00:34:56,280 --> 00:34:59,680
Speaker 1: like investing. I prefer investing to buying stuff I enjoy

728
00:34:59,800 --> 00:35:03,080
Speaker 1: that that is fun to me, rather than just spending

729
00:35:03,080 --> 00:35:05,360
Speaker 1: my money on Then it's like, whatever, cool. If this

730
00:35:05,400 --> 00:35:07,360
Speaker 1: is a small piece of your investing pie, then I

731
00:35:07,400 --> 00:35:09,680
Speaker 1: think that's fine. And I do like the main invest

732
00:35:09,760 --> 00:35:11,960
Speaker 1: isn't charging feast to the investors on their platform. That

733
00:35:12,160 --> 00:35:14,360
Speaker 1: it's you know, the small business is kind of covering

734
00:35:14,400 --> 00:35:17,400
Speaker 1: it on that front. And and you can invest with

735
00:35:17,440 --> 00:35:18,920
Speaker 1: as little as a hundred bucks, which I think is

736
00:35:18,920 --> 00:35:21,160
Speaker 1: great too. That means you can throw the equivalent of

737
00:35:21,520 --> 00:35:25,400
Speaker 1: chump change in this direction, making your risk exposure incredibly small.

738
00:35:25,440 --> 00:35:26,719
Speaker 1: Like you don't have to come to the table with

739
00:35:26,760 --> 00:35:29,759
Speaker 1: thousands of dollars to help the local bakery get off

740
00:35:29,760 --> 00:35:31,960
Speaker 1: its feet. You can't come in with a little amounts

741
00:35:31,960 --> 00:35:33,800
Speaker 1: of money. You don't have to be an acredited investor

742
00:35:33,880 --> 00:35:36,319
Speaker 1: in order to participate, which is honestly, like, I mean,

743
00:35:36,360 --> 00:35:37,879
Speaker 1: that's what a lot of these different apps are doing.

744
00:35:37,920 --> 00:35:39,920
Speaker 1: And because of that, they are able to pull in

745
00:35:39,960 --> 00:35:42,720
Speaker 1: a lot of folks who otherwise would not be able

746
00:35:42,840 --> 00:35:45,160
Speaker 1: to invest. But like you said, Jill, but a lot

747
00:35:45,160 --> 00:35:47,200
Speaker 1: of those people aren't eating their beggies first, right, and

748
00:35:47,200 --> 00:35:49,080
Speaker 1: so they're going straight to the exactly, so they're not

749
00:35:49,200 --> 00:35:52,200
Speaker 1: doing the other steps skipping to their building wealth for

750
00:35:52,239 --> 00:35:54,560
Speaker 1: their future. They're going to exactly, They're going straight to

751
00:35:54,640 --> 00:35:59,480
Speaker 1: these uh platforms that sound great and sound fun, but

752
00:35:59,719 --> 00:36:02,239
Speaker 1: they are a lot more risky too, exactly. And main

753
00:36:02,239 --> 00:36:04,680
Speaker 1: invest they say that you can expect returns between ten

754
00:36:04,719 --> 00:36:08,640
Speaker 1: and which sounds really nice, and I you know, I

755
00:36:08,680 --> 00:36:11,399
Speaker 1: think there probably are some investors who are maybe doing

756
00:36:11,440 --> 00:36:15,080
Speaker 1: pretty decently on that platform, but that's not guaranteed. And

757
00:36:15,280 --> 00:36:18,360
Speaker 1: fact is, there is more risk investing on a platform

758
00:36:18,440 --> 00:36:20,840
Speaker 1: like main invest because we've all heard the stats about

759
00:36:20,840 --> 00:36:23,840
Speaker 1: how many small businesses don't make it. I think something

760
00:36:23,880 --> 00:36:26,440
Speaker 1: like one in five fail in their first year, and

761
00:36:26,480 --> 00:36:29,480
Speaker 1: that's just for regular businesses. Like if you're looking at restaurants,

762
00:36:29,520 --> 00:36:32,360
Speaker 1: it's an even higher rate of failure. And guess what,

763
00:36:32,440 --> 00:36:38,320
Speaker 1: that's actually the types of businesses that main invest specializes in. Restaurants, Uh, breweries,

764
00:36:38,360 --> 00:36:41,600
Speaker 1: bakeries well, and like the breweries one, I feel like, look,

765
00:36:41,719 --> 00:36:44,239
Speaker 1: maybe we can we can always make it anysy if

766
00:36:44,239 --> 00:36:46,720
Speaker 1: we've got like a soft spot for Yeah, you've discovered

767
00:36:46,719 --> 00:36:48,480
Speaker 1: the chink in our armor where we're willing to invest

768
00:36:48,520 --> 00:36:50,879
Speaker 1: in any in any brewery out there. But the fact

769
00:36:51,000 --> 00:36:54,120
Speaker 1: is there is a heightened level of risk here, and

770
00:36:54,160 --> 00:36:56,280
Speaker 1: so we want you to take that into account because

771
00:36:56,440 --> 00:36:59,239
Speaker 1: the rewards that they might be potentially higher, but the

772
00:36:59,360 --> 00:37:03,359
Speaker 1: risk levels are significantly heightened as well. And I will say,

773
00:37:03,600 --> 00:37:05,560
Speaker 1: like may Investing, you know they've got this vetting process.

774
00:37:05,719 --> 00:37:07,880
Speaker 1: Uh they say they only accept five percent of applicants

775
00:37:08,239 --> 00:37:10,600
Speaker 1: to be able to raise money on their platform. So

776
00:37:10,800 --> 00:37:13,160
Speaker 1: that could lower the risk, but at the same time,

777
00:37:13,200 --> 00:37:17,520
Speaker 1: that could just be marketing because there's yeah, it's difficult

778
00:37:17,520 --> 00:37:19,279
Speaker 1: to know. And the other thing too, is that is

779
00:37:19,320 --> 00:37:21,040
Speaker 1: that ma invest it. I mean, it hasn't been around

780
00:37:21,120 --> 00:37:24,239
Speaker 1: for all that long and it's difficult. Like it makes

781
00:37:24,239 --> 00:37:26,120
Speaker 1: me think this is more anecdotal, but it reminds me

782
00:37:26,160 --> 00:37:28,600
Speaker 1: of when I invested some money on lending Club and

783
00:37:28,680 --> 00:37:30,719
Speaker 1: this was you know, one of these newer platforms that

784
00:37:30,760 --> 00:37:32,719
Speaker 1: they've actually been around for a while now. They were

785
00:37:32,760 --> 00:37:35,600
Speaker 1: super hot there first. They were super hot folks were

786
00:37:35,640 --> 00:37:37,680
Speaker 1: they were writing about their returns and they were showing

787
00:37:37,719 --> 00:37:40,399
Speaker 1: their numbers and everything. And during that initial phase, as

788
00:37:40,440 --> 00:37:43,640
Speaker 1: folks were getting on board, those initial investors did a

789
00:37:43,680 --> 00:37:46,040
Speaker 1: really good job. And so that's when someone like me,

790
00:37:46,320 --> 00:37:49,080
Speaker 1: you know, this is maybe eight nine years ago, I thought, oh,

791
00:37:49,280 --> 00:37:51,600
Speaker 1: that's something I could do. So I didn't replicate that, yeah,

792
00:37:51,600 --> 00:37:53,359
Speaker 1: and so I decided to throw some money that way,

793
00:37:53,400 --> 00:37:58,080
Speaker 1: and my returns were abysmal. They sucked, especially when you

794
00:37:58,120 --> 00:38:00,480
Speaker 1: look at what had I taken that money instead and

795
00:38:00,520 --> 00:38:02,880
Speaker 1: invested it in the SMP during that same period, I

796
00:38:02,880 --> 00:38:07,239
Speaker 1: would have earned something like yeah on my money, as

797
00:38:07,239 --> 00:38:11,239
Speaker 1: opposed to like, definitely not that. And so that's just

798
00:38:11,280 --> 00:38:12,840
Speaker 1: something else we want you to keep in mind. The

799
00:38:12,840 --> 00:38:15,120
Speaker 1: fact that mainvest it's relatively new. I think I saw

800
00:38:15,160 --> 00:38:18,000
Speaker 1: that they launched in so like that means like they

801
00:38:18,040 --> 00:38:20,160
Speaker 1: literally didn't exist, Joel. When you and I when we

802
00:38:20,160 --> 00:38:23,160
Speaker 1: recorded the first how the Money a k A. Porn

803
00:38:23,200 --> 00:38:25,480
Speaker 1: Up Poor episodes back in the day, Yeah, Well, one

804
00:38:25,480 --> 00:38:27,720
Speaker 1: of the things that Martina needs to consider as well

805
00:38:27,880 --> 00:38:30,439
Speaker 1: is how much time she has on hand. Because part

806
00:38:30,440 --> 00:38:33,400
Speaker 1: of the reason we love index fonds over individual stock

807
00:38:33,440 --> 00:38:36,080
Speaker 1: investing is because it takes no time. Right, it's this

808
00:38:36,120 --> 00:38:38,880
Speaker 1: autopilot scenario. It's kind of a set it and forget it,

809
00:38:39,280 --> 00:38:42,640
Speaker 1: recurring contributions into something boring that you don't have to

810
00:38:42,680 --> 00:38:45,240
Speaker 1: think about. And so, yeah, if if you're thinking about

811
00:38:45,320 --> 00:38:48,600
Speaker 1: investing meaningful amounts of money on this platform on mainvest,

812
00:38:48,880 --> 00:38:51,040
Speaker 1: you're going to want to read the business plans and

813
00:38:51,080 --> 00:38:55,239
Speaker 1: have time consider the individual business risk factors basically why

814
00:38:55,280 --> 00:38:57,960
Speaker 1: you might be able to generate outside returns that will

815
00:38:58,000 --> 00:39:00,719
Speaker 1: likely take extra studying on your part to make sure

816
00:39:00,760 --> 00:39:04,040
Speaker 1: that you're making the smart choices investing in businesses that

817
00:39:04,080 --> 00:39:07,720
Speaker 1: will have the best chance of success. And so especially

818
00:39:07,760 --> 00:39:10,239
Speaker 1: when you're talking about potentially investing small amounts of money,

819
00:39:10,320 --> 00:39:13,080
Speaker 1: is that worth your time? And finally, if the business

820
00:39:13,160 --> 00:39:16,560
Speaker 1: goes the you investing goes, belly up may invest. They

821
00:39:16,600 --> 00:39:18,240
Speaker 1: say on their site they're not gonna help you collect

822
00:39:18,239 --> 00:39:20,879
Speaker 1: the capital that you've invested. That money just vanished into

823
00:39:20,880 --> 00:39:23,759
Speaker 1: the ether unless the lawyer up and you know, go

824
00:39:23,840 --> 00:39:26,200
Speaker 1: after them to see if you can scrounge some of

825
00:39:26,200 --> 00:39:28,919
Speaker 1: those dollars back. And I'm guessing you're not likely gonna

826
00:39:28,960 --> 00:39:31,359
Speaker 1: want to do that, considering you're hopefully not talking about

827
00:39:31,400 --> 00:39:34,600
Speaker 1: investing a large amount of money lawyer up for the

828
00:39:34,600 --> 00:39:38,799
Speaker 1: platform three hund you invested exactly, So Martina, should you

829
00:39:38,880 --> 00:39:41,680
Speaker 1: do it, we will let you be the judge. We

830
00:39:41,719 --> 00:39:43,840
Speaker 1: think this is a pretty cool idea and the platform

831
00:39:44,040 --> 00:39:47,520
Speaker 1: it seems solid for now, but it's just not our

832
00:39:47,560 --> 00:39:49,759
Speaker 1: cup of tea. But if you've got the time, you've

833
00:39:49,760 --> 00:39:51,839
Speaker 1: got the desire, this could be a fun endeavor with

834
00:39:51,920 --> 00:39:54,640
Speaker 1: some of the extra dollars that you've gotten hanging around. Uh.

835
00:39:54,680 --> 00:39:56,680
Speaker 1: I like that you said that you've done something like

836
00:39:56,680 --> 00:39:58,359
Speaker 1: this in the past, right, like that you've done it

837
00:39:58,520 --> 00:40:01,360
Speaker 1: almost more from from the standpoint of charity. You you

838
00:40:01,400 --> 00:40:03,760
Speaker 1: mentioned Kiva, which is a micro loan side. I actually

839
00:40:04,080 --> 00:40:07,279
Speaker 1: uh loaned out some money on Kiva before, back in

840
00:40:07,320 --> 00:40:08,920
Speaker 1: the day. It's like where you make micro loans to

841
00:40:09,680 --> 00:40:13,440
Speaker 1: like super tiny small businesses and foreign countries that are

842
00:40:13,440 --> 00:40:15,759
Speaker 1: looking to like literally like purchase a cow, that kind

843
00:40:15,760 --> 00:40:18,080
Speaker 1: of thing. And so I honestly think that taking kind

844
00:40:18,080 --> 00:40:20,759
Speaker 1: of a mindset like that might be the way to go, right, Like,

845
00:40:20,760 --> 00:40:23,880
Speaker 1: like you might crush it, uh investing with may invest

846
00:40:23,920 --> 00:40:26,080
Speaker 1: but viewing it in a more charitable way. We think

847
00:40:26,120 --> 00:40:27,960
Speaker 1: that could be a healthy way for you to think

848
00:40:27,960 --> 00:40:30,080
Speaker 1: about the money that you're gonna invest on a platform

849
00:40:30,120 --> 00:40:31,719
Speaker 1: like this, Like just think about it almost like the

850
00:40:31,840 --> 00:40:36,759
Speaker 1: cherry on top. Were you to receive any returns that way,

851
00:40:36,800 --> 00:40:38,839
Speaker 1: if things don't pan out, you can maybe just feel

852
00:40:38,880 --> 00:40:41,600
Speaker 1: good about the fact that you helped to launch a

853
00:40:41,600 --> 00:40:44,759
Speaker 1: new business. Uh potentially even locally there to where it

854
00:40:44,800 --> 00:40:46,600
Speaker 1: as you live. Yeah, all right, you just mentioned something.

855
00:40:46,680 --> 00:40:48,280
Speaker 1: Just how the money do we need a cow? Should

856
00:40:48,280 --> 00:40:50,200
Speaker 1: we get a raise money to buy a cow? You

857
00:40:50,239 --> 00:40:52,680
Speaker 1: mean like we're gonna go in and split a cow together? Uh,

858
00:40:52,680 --> 00:40:55,960
Speaker 1: and then you're gonna raise it from infancy. No, that's

859
00:40:55,960 --> 00:40:58,839
Speaker 1: not the cow that you appreciate. That's true. I've seen

860
00:40:58,840 --> 00:41:00,680
Speaker 1: the stakes you've been buying recent Sure, i'd do like

861
00:41:00,719 --> 00:41:02,600
Speaker 1: at stake alright. On that note, that's like a whole

862
00:41:02,600 --> 00:41:04,600
Speaker 1: another thing though, whether or not we like we buy

863
00:41:04,600 --> 00:41:07,600
Speaker 1: a deep freeze go and split a cow, that's what

864
00:41:07,640 --> 00:41:10,040
Speaker 1: I'm talking That could be a good, uh comly investment.

865
00:41:10,080 --> 00:41:12,040
Speaker 1: But the cost savings wait, yeah, lower the cost of

866
00:41:12,080 --> 00:41:14,400
Speaker 1: your meek consumption. All right, let's let's move on to

867
00:41:14,400 --> 00:41:16,080
Speaker 1: the next question. Though, Matt, this is the last one

868
00:41:16,120 --> 00:41:18,920
Speaker 1: for this episode, and this one is particularly about what

869
00:41:19,040 --> 00:41:22,080
Speaker 1: to do with short term money. There are more options

870
00:41:22,160 --> 00:41:27,480
Speaker 1: than there have been recently for this listener to consider. Hey,

871
00:41:27,560 --> 00:41:30,640
Speaker 1: Matt and Joel, this is Allison from New Orleans. I've

872
00:41:30,640 --> 00:41:32,719
Speaker 1: been listening to How the Money for two years now,

873
00:41:32,800 --> 00:41:36,000
Speaker 1: and I've learned so much. For example, I refinanced our

874
00:41:36,000 --> 00:41:39,200
Speaker 1: house last year after listening to the show. My question

875
00:41:39,239 --> 00:41:43,200
Speaker 1: today is about financing my medical school education. Because I

876
00:41:43,200 --> 00:41:46,200
Speaker 1: worked for ten years as an engineer before starting med school,

877
00:41:46,560 --> 00:41:49,200
Speaker 1: I'm able to pay my tuition without taking out loans.

878
00:41:50,200 --> 00:41:53,560
Speaker 1: I have three more years until I graduate. I sold

879
00:41:53,600 --> 00:41:56,080
Speaker 1: some stocks last year to pay for all four years

880
00:41:56,080 --> 00:41:58,400
Speaker 1: of tuition, and most of that money is now and

881
00:41:58,440 --> 00:42:01,600
Speaker 1: a savings account. My husband and I did use twenty

882
00:42:02,000 --> 00:42:05,600
Speaker 1: dollars of that money to buy I bonds. Recently, on

883
00:42:05,640 --> 00:42:08,080
Speaker 1: the Treasury Direct site, I noticed that there are other

884
00:42:08,160 --> 00:42:12,279
Speaker 1: options for short term investments, such as treasury notes. I

885
00:42:12,320 --> 00:42:14,960
Speaker 1: didn't understand the description of the notes on the site,

886
00:42:15,280 --> 00:42:16,960
Speaker 1: so I don't know if this is a good option

887
00:42:17,040 --> 00:42:20,480
Speaker 1: for me. I would appreciate any suggestions for making the

888
00:42:20,480 --> 00:42:22,840
Speaker 1: most of this money in the next two to three years.

889
00:42:23,719 --> 00:42:26,520
Speaker 1: As a side note, I didn't qualify for low interest

890
00:42:26,560 --> 00:42:30,200
Speaker 1: student loans from the government. My husband and I are

891
00:42:30,200 --> 00:42:33,600
Speaker 1: also well on track with our retirement investments and we

892
00:42:33,680 --> 00:42:36,960
Speaker 1: have no debt outside of our mortgage. Thanks again, and

893
00:42:37,000 --> 00:42:40,560
Speaker 1: I look forward to hearing from you guys. All Right, Allison,

894
00:42:40,760 --> 00:42:43,440
Speaker 1: congrats on multiple fronts. First of all, she used to

895
00:42:43,480 --> 00:42:46,920
Speaker 1: be an engineer. Now she's going to med schools. Is

896
00:42:46,920 --> 00:42:49,799
Speaker 1: like the full package. She's bringing the heat smarter than

897
00:42:49,840 --> 00:42:52,960
Speaker 1: you or I. She uh locked in a low interest

898
00:42:53,040 --> 00:42:56,320
Speaker 1: rate on a house. She sold stocks while the market

899
00:42:56,320 --> 00:42:57,960
Speaker 1: was near the top last year, so she was like

900
00:42:57,960 --> 00:43:02,279
Speaker 1: a Southsayer too. That's incredible her Yeah time was impeccable

901
00:43:02,360 --> 00:43:04,200
Speaker 1: because not many folks are going to be able to

902
00:43:04,200 --> 00:43:06,560
Speaker 1: predict the market like that. Not not many folks could

903
00:43:06,560 --> 00:43:08,879
Speaker 1: have predicted the dramatic rise. Sounds like she wasn't trying

904
00:43:08,920 --> 00:43:13,000
Speaker 1: to predict it, but just coincide it. Just uh. Yeah,

905
00:43:13,040 --> 00:43:15,640
Speaker 1: she refinanced last year. We saw the dramatic increase in

906
00:43:15,760 --> 00:43:18,279
Speaker 1: rates this year. But yeah, taking that, you know, that

907
00:43:18,360 --> 00:43:21,520
Speaker 1: burden to hand, refinancing into historically low rates last year,

908
00:43:21,560 --> 00:43:24,480
Speaker 1: that was a huge money win for you. Allison. Congrats

909
00:43:24,920 --> 00:43:28,560
Speaker 1: and again having this cash on hand for school. This

910
00:43:28,640 --> 00:43:31,719
Speaker 1: is likely a major relief. This is how you pay

911
00:43:31,760 --> 00:43:35,839
Speaker 1: for school, right, Like, I guess, aside from scholarship, that

912
00:43:35,840 --> 00:43:38,000
Speaker 1: that's first the way to pay for school. Have somebody

913
00:43:38,000 --> 00:43:39,920
Speaker 1: else pay for it. Actually, we have a recent article

914
00:43:39,920 --> 00:43:41,920
Speaker 1: that we just published on our website about that. If

915
00:43:41,920 --> 00:43:43,600
Speaker 1: you're looking for how to pay for college, go check

916
00:43:43,640 --> 00:43:45,360
Speaker 1: that one out. We'll wink to the show. But but

917
00:43:45,360 --> 00:43:47,840
Speaker 1: but secondly, having the cash on hand pay paying for

918
00:43:47,880 --> 00:43:51,640
Speaker 1: it yourself, avoiding loans altogether. She wasn't you and your

919
00:43:51,719 --> 00:43:54,319
Speaker 1: husband's crushing it. She wants to optimize that money over

920
00:43:54,360 --> 00:43:57,120
Speaker 1: the next few years while she's in school so that

921
00:43:57,239 --> 00:43:59,960
Speaker 1: it's not, you know, getting eaten away completely by inflation.

922
00:44:00,040 --> 00:44:02,840
Speaker 1: There the question is how do you the question maximize

923
00:44:02,840 --> 00:44:05,080
Speaker 1: the money you have on hand so that it's not

924
00:44:05,160 --> 00:44:07,480
Speaker 1: being torn to shreds by inflation and that you're able

925
00:44:07,480 --> 00:44:11,160
Speaker 1: to get a solid return. Well, fortunately, basically every vehicle

926
00:44:11,239 --> 00:44:13,640
Speaker 1: available for savers is doing better than it has in

927
00:44:13,680 --> 00:44:16,040
Speaker 1: a long time. A couple of years ago, it would

928
00:44:16,040 --> 00:44:18,120
Speaker 1: have been like crickets to the instance, where will I

929
00:44:18,160 --> 00:44:20,759
Speaker 1: go to earn anything on my money that it's like,

930
00:44:20,840 --> 00:44:23,600
Speaker 1: let's talk about point five percent exactly. That's what we

931
00:44:23,600 --> 00:44:26,560
Speaker 1: were dealing. That's the sexiest option available, But unfortunately that's

932
00:44:26,600 --> 00:44:28,960
Speaker 1: not the case anymore. Some of the best CDs and

933
00:44:29,040 --> 00:44:32,040
Speaker 1: SAME's accounts are paying close to, if not north of

934
00:44:32,360 --> 00:44:35,279
Speaker 1: four percent at this point. Because you'll need some of

935
00:44:35,320 --> 00:44:37,440
Speaker 1: this money soon to pay for your next tuition installment,

936
00:44:37,920 --> 00:44:39,680
Speaker 1: some of it will need to be sitting in a

937
00:44:39,760 --> 00:44:42,279
Speaker 1: plain old high yield savings account. We're talking about an

938
00:44:42,320 --> 00:44:45,239
Speaker 1: account like c I T where their rate is north

939
00:44:45,280 --> 00:44:47,319
Speaker 1: of three and a half percent now, but it will

940
00:44:47,360 --> 00:44:51,080
Speaker 1: make sense to do some laddering for those other dollars

941
00:44:51,080 --> 00:44:53,719
Speaker 1: that you don't need for like next semester's tuition, in

942
00:44:53,880 --> 00:44:56,680
Speaker 1: order to score higher guaranteed rates of return on your

943
00:44:56,680 --> 00:44:59,319
Speaker 1: money that you're not going to need immediately. That's right. Yeah,

944
00:44:59,320 --> 00:45:02,640
Speaker 1: conditions are for all the savers out there. It's a

945
00:45:02,640 --> 00:45:05,759
Speaker 1: great savings environment. Uh. And it sounds like Allison is

946
00:45:05,760 --> 00:45:08,839
Speaker 1: already doing that with a portion of the cash by

947
00:45:09,000 --> 00:45:12,200
Speaker 1: socking it away into I bonds, which are still one

948
00:45:12,239 --> 00:45:14,239
Speaker 1: of the best bets for folks who've got a chunk

949
00:45:14,239 --> 00:45:16,439
Speaker 1: of money to sock away for at least a year.

950
00:45:16,680 --> 00:45:19,240
Speaker 1: But since there is an annual cap of ten thousand dollars.

951
00:45:19,239 --> 00:45:21,040
Speaker 1: She's she's maxed that one out for the time being.

952
00:45:21,640 --> 00:45:23,880
Speaker 1: With that mine, it might make sense to sock another

953
00:45:23,920 --> 00:45:28,480
Speaker 1: ten thousand dollars each away into I bonds early in though.

954
00:45:28,760 --> 00:45:31,160
Speaker 1: But Allison, in addition to this, and this this kind

955
00:45:31,160 --> 00:45:35,640
Speaker 1: of unconventional, but look into new bank account bonuses. I

956
00:45:35,640 --> 00:45:37,400
Speaker 1: think this is an option. I mean, it'll take a

957
00:45:37,440 --> 00:45:39,600
Speaker 1: little bit of legwork, but will link to doctor of

958
00:45:39,640 --> 00:45:42,360
Speaker 1: credit who does a great job documenting the best bonus

959
00:45:42,400 --> 00:45:45,839
Speaker 1: offers that are available out there for new accounts, because

960
00:45:45,880 --> 00:45:47,640
Speaker 1: you might just be able to juice your returns by

961
00:45:47,640 --> 00:45:51,080
Speaker 1: snagging a sign up bonus in addition to a great rate.

962
00:45:51,120 --> 00:45:53,279
Speaker 1: And what's good about this, Like I mentioned that it's

963
00:45:53,320 --> 00:45:55,120
Speaker 1: gonna you know, I might take a little bit of legwork,

964
00:45:55,440 --> 00:45:59,520
Speaker 1: but the work that's involved it's finite. It's more administered

965
00:45:59,800 --> 00:46:02,160
Speaker 1: at administration kind of work. Right, It's not like you're

966
00:46:02,360 --> 00:46:06,880
Speaker 1: doing a little bit of work researching company. Yeah. You're

967
00:46:06,880 --> 00:46:09,000
Speaker 1: not dependent on the market. You're not depending dependent on

968
00:46:09,040 --> 00:46:12,080
Speaker 1: the ups and downs. It's a matter of I need

969
00:46:12,120 --> 00:46:14,560
Speaker 1: to do this and this, and I need to deposit

970
00:46:14,640 --> 00:46:16,680
Speaker 1: this money by this date, which, by the way, I

971
00:46:16,680 --> 00:46:18,680
Speaker 1: feel like that's kind of how an engineer thinks, right,

972
00:46:18,719 --> 00:46:20,759
Speaker 1: They're like, Okay, I've got all these conditions that must

973
00:46:20,760 --> 00:46:23,360
Speaker 1: be met. By doing those things, I will earn this

974
00:46:23,480 --> 00:46:27,560
Speaker 1: much money. And I kind of like the guaranteed nature

975
00:46:27,800 --> 00:46:30,000
Speaker 1: of these bank bonuses. Yeah, no, I need too. And

976
00:46:30,000 --> 00:46:32,120
Speaker 1: I think especially if it if that bank is paying

977
00:46:32,160 --> 00:46:34,719
Speaker 1: not just a great great for signing up, like hey,

978
00:46:34,719 --> 00:46:37,319
Speaker 1: here's five bucks, here's a thousand dollars for putting in

979
00:46:37,360 --> 00:46:39,840
Speaker 1: this much money into our bank, but they also have

980
00:46:40,040 --> 00:46:42,560
Speaker 1: a decent rate to return that's comparable to what the

981
00:46:42,560 --> 00:46:45,279
Speaker 1: epper echelon banks are doing. Like ally, like C I T.

982
00:46:45,640 --> 00:46:48,080
Speaker 1: If we're talking about three point six three point seven

983
00:46:48,120 --> 00:46:51,160
Speaker 1: five or more in addition to that sign up bonus,

984
00:46:51,400 --> 00:46:53,040
Speaker 1: then it's a slam dunk to try that out with

985
00:46:53,080 --> 00:46:55,520
Speaker 1: some of those funds to meet those terms in order

986
00:46:55,560 --> 00:46:57,960
Speaker 1: to score extra money on your cash. And I'm just

987
00:46:58,000 --> 00:47:00,280
Speaker 1: glad too, by the way, that Alison hasn't she didn't

988
00:47:00,280 --> 00:47:03,640
Speaker 1: mention investing with some with these dollars, because there is

989
00:47:03,840 --> 00:47:06,080
Speaker 1: a reason when you're talking about short term needs, and

990
00:47:06,400 --> 00:47:08,399
Speaker 1: some of this is really short term needs to use

991
00:47:08,400 --> 00:47:11,000
Speaker 1: this money other but it is two years down the road, maybe,

992
00:47:11,080 --> 00:47:13,200
Speaker 1: let's say, but it's not worth putting those dollars at

993
00:47:13,280 --> 00:47:15,080
Speaker 1: risk by having them in the market. So I'm glad

994
00:47:15,080 --> 00:47:17,120
Speaker 1: that she's looking to safer options to grow her money.

995
00:47:17,200 --> 00:47:18,839
Speaker 1: It's a little too short of a time for sure.

996
00:47:18,920 --> 00:47:21,600
Speaker 1: Well she meant like US bonds, T notes, and T bills,

997
00:47:21,600 --> 00:47:25,279
Speaker 1: those are all other risk free places where you could

998
00:47:25,280 --> 00:47:27,880
Speaker 1: stick your money. Since you're buying government debt, which is

999
00:47:27,920 --> 00:47:30,640
Speaker 1: one of the safest places to stick your dollars. It's

1000
00:47:30,800 --> 00:47:33,160
Speaker 1: literally backed by the US government, which, yeah, if the

1001
00:47:33,280 --> 00:47:35,759
Speaker 1: US government goes bust, we've got bigger problems. But yet

1002
00:47:35,840 --> 00:47:38,560
Speaker 1: you can earn a solid rate of return there as well,

1003
00:47:38,719 --> 00:47:40,320
Speaker 1: better than you have been able to in a while.

1004
00:47:40,719 --> 00:47:43,239
Speaker 1: But since rates are likely to continue to increase, since

1005
00:47:43,239 --> 00:47:47,239
Speaker 1: we're in an environment where rate increases are still going up,

1006
00:47:47,719 --> 00:47:50,000
Speaker 1: we still like the idea of stalking money away into

1007
00:47:50,000 --> 00:47:52,520
Speaker 1: the highest interest savings accounts and c D options that

1008
00:47:52,520 --> 00:47:54,760
Speaker 1: we were mentioning, because even if the rate of return

1009
00:47:54,880 --> 00:47:56,880
Speaker 1: is just a little bit less on those than what

1010
00:47:56,920 --> 00:47:59,160
Speaker 1: you'd be able to get with a treasury bill right now,

1011
00:47:59,239 --> 00:48:01,520
Speaker 1: let's say it might not be for long, considering how

1012
00:48:01,600 --> 00:48:04,920
Speaker 1: dynamic interest rates have been recently. Yeah, yeah, I mean,

1013
00:48:04,920 --> 00:48:07,000
Speaker 1: so treasuries like they made a bit more sense in

1014
00:48:07,320 --> 00:48:11,000
Speaker 1: decades past, right like, like, basically since the eighties when

1015
00:48:11,080 --> 00:48:15,040
Speaker 1: the Fed funds rate peaked at since then, we've only

1016
00:48:15,040 --> 00:48:17,560
Speaker 1: seen rates drop for the most part. Uh, And so

1017
00:48:17,680 --> 00:48:20,440
Speaker 1: you know what that means was that by buying treasuries

1018
00:48:20,520 --> 00:48:23,439
Speaker 1: like you were able to continue earning that higher rate

1019
00:48:23,840 --> 00:48:26,520
Speaker 1: even while rates were declining all around you. So basically

1020
00:48:26,560 --> 00:48:28,279
Speaker 1: the floor was dropping around you, but you were kind

1021
00:48:28,280 --> 00:48:30,560
Speaker 1: of pegged at the rate that you bought at. But

1022
00:48:31,400 --> 00:48:33,759
Speaker 1: we're seeing the opposite of that right now. Right like,

1023
00:48:33,880 --> 00:48:36,799
Speaker 1: rates they are climbing, they are expected to continue to

1024
00:48:36,880 --> 00:48:39,040
Speaker 1: do so, and so because of that, fewer folks are

1025
00:48:39,040 --> 00:48:42,840
Speaker 1: willing to lock themselves in to what might be potentially

1026
00:48:42,880 --> 00:48:45,880
Speaker 1: crummy rates here in the future. That's also why I

1027
00:48:46,000 --> 00:48:49,239
Speaker 1: bonds are more attractive and why it's uh, what something

1028
00:48:49,239 --> 00:48:51,759
Speaker 1: we've talked about and why you've also purchased them is

1029
00:48:51,800 --> 00:48:55,280
Speaker 1: because as inflation does go up, as rates do increase

1030
00:48:55,320 --> 00:48:57,680
Speaker 1: in order to combat that inflation, you're going to see

1031
00:48:57,760 --> 00:49:00,239
Speaker 1: that when it comes to what it is that you're

1032
00:49:00,280 --> 00:49:02,680
Speaker 1: earning on those iboms. And it sure looks like inflation

1033
00:49:02,800 --> 00:49:06,600
Speaker 1: is coming down in a real way, and so savers

1034
00:49:06,719 --> 00:49:10,359
Speaker 1: rawsill're going up. Inflation has been coming down a little bit,

1035
00:49:10,600 --> 00:49:13,600
Speaker 1: meaning that what's actually happening to savers is better than

1036
00:49:13,640 --> 00:49:16,000
Speaker 1: it's been in a long time, because there's usually been

1037
00:49:16,040 --> 00:49:18,279
Speaker 1: even more of a spread lower rates for savers. But

1038
00:49:18,320 --> 00:49:21,160
Speaker 1: now we're seeing higher rates for savers, inflation starting to

1039
00:49:21,200 --> 00:49:24,240
Speaker 1: trickle down a little bit, and so the real environment

1040
00:49:24,239 --> 00:49:26,040
Speaker 1: for savers is better than it's been in a while.

1041
00:49:26,480 --> 00:49:29,160
Speaker 1: We wish you the best making smart moves with that money,

1042
00:49:29,320 --> 00:49:33,080
Speaker 1: and the best in med school. Again, Allison much smarter

1043
00:49:33,160 --> 00:49:35,400
Speaker 1: than either of us, Matt. Oh, yeah, if only we

1044
00:49:35,440 --> 00:49:37,680
Speaker 1: had a fraction of alison smarts. I think what we

1045
00:49:37,719 --> 00:49:40,760
Speaker 1: can do with it. I feel like, like like I'm

1046
00:49:40,760 --> 00:49:42,480
Speaker 1: a V eight engine over here. That's just like running

1047
00:49:42,480 --> 00:49:44,759
Speaker 1: off with three cylinders. Imagine if I even had like

1048
00:49:44,760 --> 00:49:46,400
Speaker 1: six of my cylinders running. I'm like the tin man

1049
00:49:46,440 --> 00:49:48,239
Speaker 1: if I only had a brain, Like, how great would

1050
00:49:48,280 --> 00:49:50,560
Speaker 1: that be? We we can accomplish? How much somehow we're

1051
00:49:50,560 --> 00:49:53,560
Speaker 1: able to keep this business afloat? I guess so alright, Well,

1052
00:49:53,640 --> 00:49:54,880
Speaker 1: let's let's get back to the beer that we had

1053
00:49:54,920 --> 00:49:56,920
Speaker 1: on this episode, Matt. This one was called She's My

1054
00:49:57,000 --> 00:50:00,400
Speaker 1: Berry Pie. It's a dessert sour by the folks over

1055
00:50:00,440 --> 00:50:04,600
Speaker 1: at Mutation Brewing And this was our first beer by

1056
00:50:04,800 --> 00:50:07,640
Speaker 1: fairly new brewery nearby where we live, not too far.

1057
00:50:07,680 --> 00:50:09,440
Speaker 1: We're gonna have to actually go to the brick and

1058
00:50:09,480 --> 00:50:11,399
Speaker 1: mortar soon and check it out. But what we're thoughts

1059
00:50:11,400 --> 00:50:13,520
Speaker 1: on this beer, and I'll say that we are off

1060
00:50:13,560 --> 00:50:16,359
Speaker 1: to a really good start with Mutation Brewing Company. This

1061
00:50:16,480 --> 00:50:19,120
Speaker 1: was Yeah, like you said, she is my berry pie.

1062
00:50:19,200 --> 00:50:22,120
Speaker 1: This is a dessert sour. And while it has dessert

1063
00:50:22,239 --> 00:50:24,120
Speaker 1: in the name, it doesn't have a whole lot of

1064
00:50:24,200 --> 00:50:27,480
Speaker 1: like like the creamy lactose sort of flavors that you

1065
00:50:27,560 --> 00:50:31,239
Speaker 1: might expect the subdued pastry sour. Yeah. Yeah, it's just

1066
00:50:31,600 --> 00:50:33,799
Speaker 1: or even just like a fruited sour um. But it

1067
00:50:33,840 --> 00:50:36,640
Speaker 1: does have some of those pastry like flavor nose, Like

1068
00:50:36,680 --> 00:50:39,640
Speaker 1: there's I guess cinnamon up in here. Uh, you do

1069
00:50:39,880 --> 00:50:42,520
Speaker 1: pick up on something like that graham cracker crust action

1070
00:50:42,600 --> 00:50:45,160
Speaker 1: going on, like it is in an actual pie. It's

1071
00:50:45,200 --> 00:50:47,120
Speaker 1: like a summer pie as opposed to being one of

1072
00:50:47,120 --> 00:50:49,640
Speaker 1: those like way down pastry beers that a lot of

1073
00:50:49,640 --> 00:50:53,160
Speaker 1: people are making. This one was really good, Yeah, very good.

1074
00:50:53,400 --> 00:50:56,640
Speaker 1: It was nice and tart, good, fruit good, BlackBerry flavors

1075
00:50:56,680 --> 00:50:59,320
Speaker 1: going on. I prefer my sours to have a little

1076
00:50:59,360 --> 00:51:01,360
Speaker 1: bit more sweet this, you know how I like things sweet.

1077
00:51:01,520 --> 00:51:03,239
Speaker 1: But all in all, this is a fantastic beer. I'm

1078
00:51:03,239 --> 00:51:05,080
Speaker 1: I'm glad you and I were able to enjoy it,

1079
00:51:05,160 --> 00:51:08,279
Speaker 1: and I'm thankful that Jack was able to drop this

1080
00:51:08,320 --> 00:51:10,200
Speaker 1: one off for us to enjoy. Man. Yeah, I mean,

1081
00:51:10,200 --> 00:51:12,840
Speaker 1: if this is any indication of what the other Mutation

1082
00:51:13,320 --> 00:51:15,600
Speaker 1: beers are like, I'm really looking forward to and we're

1083
00:51:15,600 --> 00:51:18,680
Speaker 1: in for a treat. So thanks Jack and Matt. That's

1084
00:51:18,719 --> 00:51:20,920
Speaker 1: gonna do it for this episode. Uh. For if you

1085
00:51:20,960 --> 00:51:23,000
Speaker 1: want the show notes links to some of the resources

1086
00:51:23,000 --> 00:51:26,120
Speaker 1: that we mentioned in this episode, we will have them

1087
00:51:26,200 --> 00:51:28,680
Speaker 1: up on our website at how to money dot com.

1088
00:51:28,680 --> 00:51:31,440
Speaker 1: That's right, And we always appreciate reviews, so if you

1089
00:51:31,480 --> 00:51:33,680
Speaker 1: have not left us one of those over at Apple

1090
00:51:33,719 --> 00:51:37,480
Speaker 1: Podcasts or wherever you listen to podcasts, we would appreciate

1091
00:51:37,520 --> 00:51:41,080
Speaker 1: you doing so that helps others defined our show. But Joel,

1092
00:51:41,080 --> 00:51:43,719
Speaker 1: that's gonna be it, buddy for this episode. Until next time.

1093
00:51:43,920 --> 00:51:46,000
Speaker 1: Best Friends Out, Best Friends Out.