1
00:00:00,160 --> 00:00:03,440
Speaker 1: Welcome to Had of Money. I'm Joel and I am Matt,

2
00:00:03,560 --> 00:00:05,760
Speaker 1: and today we're answering your listener questions.

3
00:00:24,960 --> 00:00:26,600
Speaker 2: Do you know a buddy? This is an ass kind

4
00:00:26,640 --> 00:00:30,400
Speaker 2: of money episode and we've got some great topics to

5
00:00:30,440 --> 00:00:34,000
Speaker 2: get to today. So there's a listener and they have

6
00:00:34,040 --> 00:00:37,560
Speaker 2: a spouse with an expensive hobby that that particular partner

7
00:00:37,640 --> 00:00:39,760
Speaker 2: is not a fan of, and well, yeah, so we're

8
00:00:39,760 --> 00:00:43,280
Speaker 2: going to kind of dabble into those waters. Another listeners

9
00:00:43,360 --> 00:00:46,560
Speaker 2: wondering whether are not managed accounts, whether or not they're

10
00:00:46,920 --> 00:00:47,760
Speaker 2: all that they're.

11
00:00:47,520 --> 00:00:49,600
Speaker 1: Cracked up to be. Basically, we're the additional cost.

12
00:00:49,720 --> 00:00:52,519
Speaker 2: And then we're also going to talk about international roaming

13
00:00:52,840 --> 00:00:56,240
Speaker 2: with some of the low cost cellular providers. How do

14
00:00:56,240 --> 00:00:58,440
Speaker 2: you do it if you're not with one of the bigs.

15
00:00:58,880 --> 00:01:01,720
Speaker 2: We'll get to that one as well. Plus additional content

16
00:01:01,760 --> 00:01:03,800
Speaker 2: today on our ask how to Money episode.

17
00:01:03,840 --> 00:01:06,720
Speaker 1: We have recent experience with that, by the way, traveling overseas.

18
00:01:06,920 --> 00:01:09,560
Speaker 1: We'll give our thoughts on what that was like and

19
00:01:09,560 --> 00:01:12,160
Speaker 1: it might not have been great. But before we get

20
00:01:12,200 --> 00:01:14,160
Speaker 1: to that, and before we get to your questions, I

21
00:01:14,200 --> 00:01:16,360
Speaker 1: just want to mention Matt real quick that then this

22
00:01:16,440 --> 00:01:18,360
Speaker 1: is probably something we could talk about on a Friday flight.

23
00:01:18,440 --> 00:01:23,000
Speaker 1: But their rent prices around the country have softened significantly.

24
00:01:23,120 --> 00:01:26,160
Speaker 1: Like might have seen minor increases in some parts of

25
00:01:26,160 --> 00:01:29,640
Speaker 1: the country, we're even seeing rent decreases in other parts

26
00:01:29,680 --> 00:01:32,120
Speaker 1: of the country, which is which is welcomed for anybody

27
00:01:32,120 --> 00:01:35,319
Speaker 1: out there who's like got really tired of their landlord.

28
00:01:35,400 --> 00:01:39,319
Speaker 2: Snstant increases to yes, twenty two anymore writing exactly the

29
00:01:39,360 --> 00:01:41,320
Speaker 2: massive increases post pandemic.

30
00:01:41,319 --> 00:01:44,520
Speaker 1: Basically, yes, And so my little sister used this to advantage.

31
00:01:44,560 --> 00:01:47,119
Speaker 1: She is a renter, I don't know, south Al. Yeah,

32
00:01:47,440 --> 00:01:49,600
Speaker 1: she's all about like never owning a home, I think,

33
00:01:49,720 --> 00:01:53,559
Speaker 1: and which is totally fine, right, which a reasonable way

34
00:01:53,600 --> 00:01:54,880
Speaker 1: to go, and actually.

35
00:01:54,640 --> 00:01:58,320
Speaker 2: For she is investing the difference exactly in the stock market,

36
00:01:58,360 --> 00:01:59,040
Speaker 2: which she is.

37
00:01:59,160 --> 00:02:02,559
Speaker 1: Yeah, So she had a recent occurrence. Basically, they build

38
00:02:02,560 --> 00:02:06,160
Speaker 1: a whole lot of apartment complex our new apartments in Midtid, Atlanta,

39
00:02:06,440 --> 00:02:08,480
Speaker 1: and one of the things they use to entice people

40
00:02:08,720 --> 00:02:11,480
Speaker 1: is a free month or two of rent oftentimes when

41
00:02:11,520 --> 00:02:14,280
Speaker 1: they build that new facility. Plus it's like nice and shiny,

42
00:02:14,360 --> 00:02:16,000
Speaker 1: brand new, no one's ever lived in it, And so

43
00:02:16,120 --> 00:02:17,720
Speaker 1: my little sister's like, well, I'm just going to do

44
00:02:17,720 --> 00:02:20,799
Speaker 1: that every time move somewhere different and get the free

45
00:02:20,919 --> 00:02:24,120
Speaker 1: month or two and why not. But in her current

46
00:02:24,160 --> 00:02:26,960
Speaker 1: apartment complex was like, wait a second, what if we

47
00:02:26,960 --> 00:02:28,760
Speaker 1: offer you a fifty dollars discount to stay, so not

48
00:02:28,840 --> 00:02:31,760
Speaker 1: even not even keeping rent the same, but saying well

49
00:02:32,120 --> 00:02:34,200
Speaker 1: you can pay less. And she was like, well, that's

50
00:02:34,280 --> 00:02:38,040
Speaker 1: not enough of a discount. Sorry, I'm a fairly sweet

51
00:02:38,040 --> 00:02:40,120
Speaker 1: offering though. Yeah. She's like, I'm still going to go

52
00:02:40,120 --> 00:02:42,560
Speaker 1: through the pain of moving though, peace out. And they

53
00:02:42,560 --> 00:02:44,280
Speaker 1: were like, wait, how much is it going to take?

54
00:02:44,480 --> 00:02:46,919
Speaker 1: And so this is I feel like this is kind

55
00:02:46,960 --> 00:02:49,720
Speaker 1: of the data in action, which is even a corporate

56
00:02:49,800 --> 00:02:53,960
Speaker 1: landlord saying but wait, hold on, what if we give

57
00:02:53,960 --> 00:02:55,400
Speaker 1: you an extra one hundred bucks off one hundred and

58
00:02:55,400 --> 00:02:57,600
Speaker 1: fifty dollars off what you were paying every month? And

59
00:02:57,639 --> 00:02:59,200
Speaker 1: she was like, cool, that'll do it. That's enough to

60
00:02:59,200 --> 00:02:59,639
Speaker 1: get me to stay.

61
00:03:00,080 --> 00:03:00,680
Speaker 2: Fifty bucks.

62
00:03:00,760 --> 00:03:02,520
Speaker 1: Yeah, that's is that what she got? And so she

63
00:03:02,560 --> 00:03:04,200
Speaker 1: got so stand put.

64
00:03:04,400 --> 00:03:05,800
Speaker 2: I mean, yeah, I think that would do it for

65
00:03:05,840 --> 00:03:08,360
Speaker 2: me as well. Right, unless the new place has like

66
00:03:08,919 --> 00:03:13,560
Speaker 2: a karaoke room, right there, some other amazing amenity, no.

67
00:03:13,720 --> 00:03:16,600
Speaker 1: Artificial intelligence friends, right, that's the new that's the new thing. Yeah,

68
00:03:16,600 --> 00:03:18,520
Speaker 1: who needs real ones. Well that's that's awesome man.

69
00:03:18,600 --> 00:03:20,920
Speaker 2: Yeah, I think, like you said, it reinforces what the

70
00:03:21,000 --> 00:03:23,040
Speaker 2: data is showing, but it just also depends, like there

71
00:03:23,040 --> 00:03:26,840
Speaker 2: are so many factors that play into what different apartments

72
00:03:26,919 --> 00:03:29,880
Speaker 2: are able to charge for rent. Because yes, here in Atlanta,

73
00:03:29,880 --> 00:03:32,280
Speaker 2: Atlanta's booming, but you might be in a city that

74
00:03:32,960 --> 00:03:35,120
Speaker 2: maybe there isn't a whole lot of development going on,

75
00:03:35,160 --> 00:03:37,760
Speaker 2: so there aren't there isn't a whole lot of additional supply,

76
00:03:38,600 --> 00:03:41,480
Speaker 2: meaning that renters might be a little more beholden to

77
00:03:41,840 --> 00:03:44,520
Speaker 2: where they are. But it's always worth regardless, it's always

78
00:03:44,520 --> 00:03:47,240
Speaker 2: worth having that conversation and kind of asking the questions

79
00:03:47,240 --> 00:03:49,160
Speaker 2: and seeing what it is that you could potentially score.

80
00:03:49,200 --> 00:03:51,600
Speaker 1: Yeah, it's always worth knowing the market trends, and those

81
00:03:51,640 --> 00:03:53,600
Speaker 1: market trends depend on where you live. Like, for instance,

82
00:03:53,600 --> 00:03:57,160
Speaker 1: I saw it seems like the biggest rent price declines

83
00:03:57,240 --> 00:04:00,000
Speaker 1: are happening in Austin, Texas, which was boomtown for a minute.

84
00:04:00,080 --> 00:04:02,840
Speaker 1: And it's like scene, it's overinflated. It's right, it got

85
00:04:02,880 --> 00:04:05,560
Speaker 1: too hot exactly for its own good. And you don't

86
00:04:05,680 --> 00:04:07,480
Speaker 1: you don't ask if you don't get and you don't

87
00:04:07,520 --> 00:04:09,040
Speaker 1: know what to ask. For if you kind of don't

88
00:04:09,200 --> 00:04:10,920
Speaker 1: have your finger on the pulse of what's happening. So

89
00:04:11,000 --> 00:04:13,000
Speaker 1: just kind of heads up, look at the data, see

90
00:04:13,000 --> 00:04:15,320
Speaker 1: what prices are going for in your neighborhood. Look around

91
00:04:15,360 --> 00:04:17,560
Speaker 1: the corner, see what the other apartment complex is offering,

92
00:04:17,839 --> 00:04:19,560
Speaker 1: or other single family homes in your area. If you

93
00:04:19,600 --> 00:04:21,520
Speaker 1: live in a single family home there, just like scour

94
00:04:21,640 --> 00:04:24,159
Speaker 1: zillow and find out and then use that data to

95
00:04:24,200 --> 00:04:26,840
Speaker 1: present to your landlord. And they might say, wait, you're right,

96
00:04:26,880 --> 00:04:29,800
Speaker 1: I guess I can't increase rent like I thought. And

97
00:04:29,880 --> 00:04:31,960
Speaker 1: you're a great tenant, so I'll give you that little

98
00:04:31,960 --> 00:04:32,800
Speaker 1: price cut you're asking for.

99
00:04:32,920 --> 00:04:35,120
Speaker 2: Would love for you to stick around. Yeah, you don't

100
00:04:35,120 --> 00:04:36,960
Speaker 2: get if you don't ask. But let's go ahead and

101
00:04:37,040 --> 00:04:38,760
Speaker 2: introduce the beer that you and I are going to

102
00:04:38,880 --> 00:04:42,080
Speaker 2: enjoy during this episode. This is an Icelandic Arctic lagger

103
00:04:42,240 --> 00:04:47,800
Speaker 2: by Einstock Oldgurd There you go. That's that's Icelandic for beer.

104
00:04:48,160 --> 00:04:51,400
Speaker 2: Like someone's been on due a lingo lately. Huh, I'm thinking,

105
00:04:51,440 --> 00:04:53,680
Speaker 2: what is it? What was the Jamaican beer in that?

106
00:04:54,279 --> 00:04:57,080
Speaker 2: Or No, I'm thinking of Foster's. That's Fosters.

107
00:04:57,120 --> 00:04:57,520
Speaker 1: What is it?

108
00:04:57,600 --> 00:05:01,360
Speaker 2: Australian for beer, something stripe. Red Stripe's right, Jamaican beer.

109
00:05:01,720 --> 00:05:06,320
Speaker 2: They don't say red stripe Jamaican for me. They should

110
00:05:06,400 --> 00:05:09,159
Speaker 2: get in my nationalities confused, get my wires crosses.

111
00:05:09,520 --> 00:05:12,160
Speaker 1: I see why Jamaicans and Australias have so much in common.

112
00:05:12,520 --> 00:05:14,280
Speaker 1: Same people, really, But uh.

113
00:05:14,279 --> 00:05:17,520
Speaker 2: Yeah, we're gonna enjoy this beer. We're gonna answer some

114
00:05:17,760 --> 00:05:19,800
Speaker 2: money questions, but we will share what we think about

115
00:05:19,800 --> 00:05:22,679
Speaker 2: this beer at the end of the episode. But before

116
00:05:22,680 --> 00:05:24,679
Speaker 2: we get to specific questions, we want to let folks

117
00:05:24,720 --> 00:05:28,160
Speaker 2: know that you can always submit your own question. We

118
00:05:28,200 --> 00:05:30,400
Speaker 2: would love if you recorded a little voice memo. That

119
00:05:30,480 --> 00:05:32,080
Speaker 2: is always a fun way to get a little bit

120
00:05:32,120 --> 00:05:33,560
Speaker 2: of a flavor. I don't know, it's just good to

121
00:05:33,600 --> 00:05:36,159
Speaker 2: have other folks voices on the podcast as well. But

122
00:05:36,520 --> 00:05:38,640
Speaker 2: record that voice memo, send it over our way at

123
00:05:38,640 --> 00:05:40,640
Speaker 2: a how to Money pod at gmail dot com, and

124
00:05:40,640 --> 00:05:44,400
Speaker 2: hopefully we will get to it on an upcoming episode.

125
00:05:44,400 --> 00:05:46,960
Speaker 2: But Joel, we're gonna go ahead get to our first question,

126
00:05:47,040 --> 00:05:50,719
Speaker 2: which has to do with a listener. She is she's

127
00:05:50,760 --> 00:05:53,720
Speaker 2: kind of like semi retired. She's living that semi retired life.

128
00:05:53,760 --> 00:05:57,720
Speaker 2: It's like a third Eyeblind song. But specifically she is.

129
00:05:58,200 --> 00:06:00,960
Speaker 2: She's wondering whether or not this managed account that she has,

130
00:06:01,160 --> 00:06:03,400
Speaker 2: She's wanting to know whether or not it's all that Hi.

131
00:06:03,480 --> 00:06:07,480
Speaker 3: Joela Matt, this is Janet calling from Connecticut. I am

132
00:06:07,520 --> 00:06:11,480
Speaker 3: a longtime listener from the very beginning. I absolutely love

133
00:06:11,520 --> 00:06:15,800
Speaker 3: your podcast, and you both have changed and helped me

134
00:06:15,920 --> 00:06:19,000
Speaker 3: so much throughout the years. I cannot thank you enough.

135
00:06:19,640 --> 00:06:23,560
Speaker 3: I recently retired from my job. I am fifty five

136
00:06:23,640 --> 00:06:26,280
Speaker 3: years old. I have a four oh one K which

137
00:06:26,320 --> 00:06:30,360
Speaker 3: has over seven figures in it, which I'm pretty excited about.

138
00:06:31,320 --> 00:06:33,600
Speaker 4: However, I have started.

139
00:06:33,200 --> 00:06:37,960
Speaker 3: A new job because I'm certainly not ready to get

140
00:06:37,960 --> 00:06:42,440
Speaker 3: out of the workforce yet. I called Vanguard regarding my

141
00:06:42,520 --> 00:06:44,080
Speaker 3: four oh one K to see what I could do

142
00:06:44,160 --> 00:06:46,120
Speaker 3: with it, and they told me it was being managed

143
00:06:46,640 --> 00:06:50,480
Speaker 3: by a company through my previous employer and the fee

144
00:06:50,560 --> 00:06:52,839
Speaker 3: was one hundred and twenty nine dollars a month. I

145
00:06:52,880 --> 00:06:55,920
Speaker 3: asked them what that included, and they said, basically, it

146
00:06:55,960 --> 00:06:59,760
Speaker 3: was just an algorithm based on my risk tolerance and

147
00:06:59,800 --> 00:07:03,919
Speaker 3: my preferences for investing. So I'm wondering if this point

148
00:07:04,040 --> 00:07:08,120
Speaker 3: if it makes sense to just put the money in

149
00:07:08,160 --> 00:07:11,680
Speaker 3: a target date fund, considering I really only have about

150
00:07:11,760 --> 00:07:14,840
Speaker 3: five to seven years left in the workforce, and then

151
00:07:14,880 --> 00:07:17,200
Speaker 3: my fees would go down to I think they said

152
00:07:17,200 --> 00:07:20,880
Speaker 3: eighty nine dollars annually, so quite a big difference there.

153
00:07:21,600 --> 00:07:24,120
Speaker 4: I think I know the answer, but I would love

154
00:07:24,160 --> 00:07:24,800
Speaker 4: your input.

155
00:07:25,120 --> 00:07:29,440
Speaker 3: Also, my new employer has a fidelity retirement plan and

156
00:07:29,560 --> 00:07:33,400
Speaker 3: I'm thinking that I should just start contributing to that

157
00:07:33,920 --> 00:07:36,480
Speaker 3: and leave my Vanguard money where it is, so any

158
00:07:36,480 --> 00:07:39,080
Speaker 3: advice you could give me, I would certainly appreciate.

159
00:07:39,560 --> 00:07:41,240
Speaker 4: Thank you so much for the podcast.

160
00:07:42,080 --> 00:07:44,760
Speaker 1: Janet, thank you so much for this question. In Matt

161
00:07:44,800 --> 00:07:47,320
Speaker 1: the beginning of How to Money was a long time ago,

162
00:07:47,360 --> 00:07:49,800
Speaker 1: and yeah it was. In fact, it wasn't wasn't called

163
00:07:49,800 --> 00:07:51,760
Speaker 1: how to Money the very beginning. We'll say, story for

164
00:07:51,800 --> 00:07:53,920
Speaker 1: another day, but thank you so much for being a

165
00:07:53,960 --> 00:07:55,640
Speaker 1: listener for such a long period of time. Jane, We

166
00:07:55,680 --> 00:07:59,320
Speaker 1: really appreciate it. And you really should be excited about

167
00:07:59,320 --> 00:08:01,280
Speaker 1: a seven figure your retirement accounts.

168
00:08:01,280 --> 00:08:03,760
Speaker 2: She kind of quickly just threw that out there, and

169
00:08:03,760 --> 00:08:06,360
Speaker 2: it's like, well, that's a big deal. Seven figures.

170
00:08:06,440 --> 00:08:08,840
Speaker 1: Most of our listeners amazing in their twenties and thirties.

171
00:08:08,880 --> 00:08:11,080
Speaker 1: That's our goal, but it seems so far off and

172
00:08:11,080 --> 00:08:13,520
Speaker 1: they're like, well, how ever get there? Well, Janet's living

173
00:08:13,520 --> 00:08:15,160
Speaker 1: proof that yes you can if you do the right

174
00:08:15,200 --> 00:08:17,920
Speaker 1: thing over a long enough period of time. Right, Yeah,

175
00:08:17,960 --> 00:08:20,320
Speaker 1: And you know, I love also that money doesn't seem

176
00:08:20,360 --> 00:08:22,840
Speaker 1: to be the driving force in your life. Right you're

177
00:08:22,880 --> 00:08:24,800
Speaker 1: certainly at the point where you could hang it up.

178
00:08:25,000 --> 00:08:27,200
Speaker 1: It's unlikely that you have to keep working if you

179
00:08:27,200 --> 00:08:30,200
Speaker 1: don't want to. You know, million dollar plus nestagg means

180
00:08:30,400 --> 00:08:32,199
Speaker 1: that you don't necessarily need to continue to pad those

181
00:08:32,200 --> 00:08:36,440
Speaker 1: retirement accounts, Like you could probably stop stop working if

182
00:08:36,480 --> 00:08:38,160
Speaker 1: you want it to. But it sounds like you still

183
00:08:38,280 --> 00:08:40,160
Speaker 1: enjoy the work you're doing, and so you're gonna keep

184
00:08:40,160 --> 00:08:42,840
Speaker 1: going with Rocks And you just have the financial ability

185
00:08:43,040 --> 00:08:44,400
Speaker 1: to not have to if you don't want to.

186
00:08:44,520 --> 00:08:44,679
Speaker 5: Yep.

187
00:08:44,800 --> 00:08:47,439
Speaker 2: Yeah. And we as much as we talk about early

188
00:08:47,480 --> 00:08:50,800
Speaker 2: retirement financial independence, that doesn't mean that we hate on work.

189
00:08:50,840 --> 00:08:54,560
Speaker 2: Your ability to contribute to to society and provide value

190
00:08:54,960 --> 00:08:56,880
Speaker 2: to other folks, I think it's huge. It gives a

191
00:08:56,920 --> 00:08:59,160
Speaker 2: lot of folks a meaning. I think I'll be doing

192
00:08:59,200 --> 00:09:02,920
Speaker 2: some sort of work long into my later years as well.

193
00:09:03,040 --> 00:09:05,920
Speaker 1: But geting to choose when, how where did they do it?

194
00:09:06,000 --> 00:09:07,760
Speaker 1: Just want to be able to yeah, I want that.

195
00:09:08,000 --> 00:09:10,680
Speaker 1: I want that, even though I also see myself working

196
00:09:10,760 --> 00:09:12,840
Speaker 1: in like my sixties. I just wanted to be on

197
00:09:12,840 --> 00:09:13,400
Speaker 1: my own terms.

198
00:09:13,440 --> 00:09:16,840
Speaker 2: Totally. Yep, yep, Janet. You're also lucky, lucky to have

199
00:09:16,920 --> 00:09:19,400
Speaker 2: some accounts that two of the best low cost providers

200
00:09:19,440 --> 00:09:22,680
Speaker 2: out there, Fidelity and Vanguard. As you know, they are great,

201
00:09:22,800 --> 00:09:25,520
Speaker 2: and you can keep growing that retirement nest egg in

202
00:09:25,600 --> 00:09:28,760
Speaker 2: that Fidelity account that you currently have access to while

203
00:09:28,960 --> 00:09:33,080
Speaker 2: letting the seven figure van sweet sweet seven figure Vanguard

204
00:09:33,080 --> 00:09:36,160
Speaker 2: account keep growing as well. There's no harm in having both.

205
00:09:36,160 --> 00:09:38,480
Speaker 2: You don't need to go all in necessarily with one provider.

206
00:09:38,800 --> 00:09:42,640
Speaker 2: But let's talk about managed accounts because that's kind of

207
00:09:42,760 --> 00:09:45,600
Speaker 2: the heart of your question, and they are not our favorite.

208
00:09:46,040 --> 00:09:49,760
Speaker 2: So managed accounts are often retirement accounts that are owned

209
00:09:49,840 --> 00:09:54,439
Speaker 2: by the individual investor yourself, but the asset allocation is

210
00:09:54,640 --> 00:09:59,160
Speaker 2: picked by a financial quote unquote financial pro right, And

211
00:09:59,200 --> 00:10:03,840
Speaker 2: we're not fans of these accounts because the fees that

212
00:10:03,880 --> 00:10:06,400
Speaker 2: are associated with that professional management. It comes at a

213
00:10:06,440 --> 00:10:09,440
Speaker 2: high cost. It is, they're typically much much more expensive

214
00:10:09,840 --> 00:10:13,040
Speaker 2: and the results that you get aren't necessarily better. And

215
00:10:13,080 --> 00:10:15,800
Speaker 2: so in your case, the fact that your managed account

216
00:10:15,880 --> 00:10:19,160
Speaker 2: is determined by an algorithm. It's not like you're talking

217
00:10:19,200 --> 00:10:20,720
Speaker 2: to somebody, right, It's not like you have a relationship

218
00:10:20,760 --> 00:10:23,480
Speaker 2: with an individual. The fact that it's software making these

219
00:10:23,520 --> 00:10:27,199
Speaker 2: decisions for you makes that exorbitant fee even more frustrating. Like,

220
00:10:27,240 --> 00:10:28,520
Speaker 2: I would get it if there is a little bit

221
00:10:28,559 --> 00:10:31,080
Speaker 2: of handholding basically, like a little bit of counseling that's

222
00:10:31,120 --> 00:10:33,320
Speaker 2: able to be provided. But essentially they're charging you a

223
00:10:33,320 --> 00:10:36,199
Speaker 2: ton of money for what a lot of the different

224
00:10:36,240 --> 00:10:39,800
Speaker 2: automatic funds out there are also doing for you, but

225
00:10:39,880 --> 00:10:41,880
Speaker 2: they're able to provide that at a much lower cost.

226
00:10:42,000 --> 00:10:44,720
Speaker 1: Yeah, I would rather much rather take that money and

227
00:10:45,360 --> 00:10:48,880
Speaker 1: spend it with a financial advisor who you trust, who's

228
00:10:48,880 --> 00:10:51,800
Speaker 1: like a fiduciary fee only and funnel money in that

229
00:10:51,840 --> 00:10:54,040
Speaker 1: direction that I would to pay extra for the managed account,

230
00:10:54,320 --> 00:10:56,280
Speaker 1: especially especially, like you said, Mack, given the fact that

231
00:10:56,320 --> 00:10:58,080
Speaker 1: it's kind of, I don't know, determined based on an

232
00:10:58,120 --> 00:11:00,880
Speaker 1: algorithm that's how the investments are plotted out. Seems it

233
00:11:00,920 --> 00:11:02,440
Speaker 1: seems like it flies in the face of what a

234
00:11:02,440 --> 00:11:06,080
Speaker 1: managed account is supposed to be, right, Yeah, yeah, exactly, Yeah,

235
00:11:06,120 --> 00:11:09,440
Speaker 1: exactly so. And given Janet that your overall account balance

236
00:11:09,520 --> 00:11:12,960
Speaker 1: is so stout, the fee is relatively small in comparison,

237
00:11:13,000 --> 00:11:14,599
Speaker 1: but it also sucks to pay for something when you

238
00:11:14,640 --> 00:11:17,439
Speaker 1: could get pretty similar results with a DIY approach. The

239
00:11:17,559 --> 00:11:21,679
Speaker 1: numbers don't lie. They consistently reveal that financial professionals aren't

240
00:11:21,800 --> 00:11:24,880
Speaker 1: able to outperform average investors who just sock their money

241
00:11:24,920 --> 00:11:26,960
Speaker 1: into a simple index fund like a total Stock market

242
00:11:27,040 --> 00:11:29,080
Speaker 1: or an S and P five hundred fund. And Matt

243
00:11:29,080 --> 00:11:31,880
Speaker 1: and my parents had something similar. Even some of the

244
00:11:31,880 --> 00:11:34,959
Speaker 1: best low cost companies like Fidelity, have managed account options.

245
00:11:35,000 --> 00:11:36,840
Speaker 1: A lot of people don't realize that. Don't like that.

246
00:11:37,000 --> 00:11:39,440
Speaker 1: They go to one of the low costs behemoths because

247
00:11:39,440 --> 00:11:41,319
Speaker 1: they've heard good things. Oh, it's not going to cost

248
00:11:41,360 --> 00:11:43,720
Speaker 1: me as much. But even those guys have options for

249
00:11:43,760 --> 00:11:45,920
Speaker 1: these managed accounts, And you might not realize it if

250
00:11:46,000 --> 00:11:47,680
Speaker 1: you're not looking at your statements, if you're not looking

251
00:11:47,679 --> 00:11:49,959
Speaker 1: over your account carefully, and you might not realize that's

252
00:11:50,000 --> 00:11:52,280
Speaker 1: something like a one plus percent fee one and a

253
00:11:52,320 --> 00:11:55,320
Speaker 1: half percent fee maybe on your account holdings is being

254
00:11:55,400 --> 00:11:58,079
Speaker 1: charged every single year. So you got to pay attention

255
00:11:58,360 --> 00:12:01,080
Speaker 1: and know, well, all right, I'm with the low cost company.

256
00:12:01,080 --> 00:12:03,400
Speaker 1: But even inside the low cost company, am I invested

257
00:12:03,440 --> 00:12:05,760
Speaker 1: in the lowest cost funds the best ones that aren't

258
00:12:05,760 --> 00:12:07,560
Speaker 1: going to eat into my returns as much over time.

259
00:12:07,640 --> 00:12:09,760
Speaker 2: Yeah, it is true that manage accounts. They do come

260
00:12:09,760 --> 00:12:13,120
Speaker 2: with the ability to tweak your holdings, and some of

261
00:12:13,120 --> 00:12:16,120
Speaker 2: them are going to dabble in some other investments like reats,

262
00:12:16,400 --> 00:12:19,320
Speaker 2: real estate investment trusts. But I guess the bigger question

263
00:12:19,360 --> 00:12:21,559
Speaker 2: there is do you actually need that exposure? And typically,

264
00:12:21,600 --> 00:12:24,040
Speaker 2: like you don't know is the answer, Like, that's not

265
00:12:24,080 --> 00:12:26,280
Speaker 2: something that you need to be exposed to unless it's

266
00:12:26,280 --> 00:12:29,720
Speaker 2: something that you are personally really interested in. The one

267
00:12:29,800 --> 00:12:32,559
Speaker 2: downside though, of a target date fund is that they

268
00:12:33,120 --> 00:12:35,960
Speaker 2: really invest based on your likely retirement date, and so

269
00:12:36,400 --> 00:12:38,880
Speaker 2: they're based on the years like every five years, twenty three,

270
00:12:39,000 --> 00:12:41,160
Speaker 2: twenty thirty five, twenty forty, that kind of thing, And

271
00:12:41,200 --> 00:12:43,560
Speaker 2: considering how much you have saved up, you might have

272
00:12:43,720 --> 00:12:46,160
Speaker 2: a bigger risk appetite. You might be willing to take

273
00:12:46,200 --> 00:12:51,160
Speaker 2: on more risk than what the quote unquote retirement fund

274
00:12:51,200 --> 00:12:54,079
Speaker 2: target date fund that you would naturally find yourself being

275
00:12:54,160 --> 00:12:56,360
Speaker 2: drawn towards, because that's you're like, oh, yeah, I want

276
00:12:56,360 --> 00:12:58,320
Speaker 2: to retire I think she said in like seven to

277
00:12:58,400 --> 00:13:00,920
Speaker 2: nine years or something like that, But it may not

278
00:13:00,960 --> 00:13:03,640
Speaker 2: be invested as aggressively given how much money you do

279
00:13:03,720 --> 00:13:05,760
Speaker 2: have on hand. So this is something that a target

280
00:13:05,800 --> 00:13:08,960
Speaker 2: date fund can't measure. Those automatic funds or making changes

281
00:13:09,000 --> 00:13:12,120
Speaker 2: to your portfolio based on a fixed timeline reducing your risk.

282
00:13:12,000 --> 00:13:13,960
Speaker 1: A little bit with every year that passes.

283
00:13:14,160 --> 00:13:16,120
Speaker 2: And so if you don't necessarily need that allocation to

284
00:13:16,120 --> 00:13:18,840
Speaker 2: shift over time where you're moving less from stocks and

285
00:13:18,880 --> 00:13:21,400
Speaker 2: more to bonds than a target date fund could actually

286
00:13:21,440 --> 00:13:23,840
Speaker 2: be a little too conservative for you. Even if you

287
00:13:23,880 --> 00:13:27,400
Speaker 2: are planning on retiring in like twenty thirty or whatever,

288
00:13:27,440 --> 00:13:29,800
Speaker 2: it is that you actually do get around or retiring

289
00:13:29,840 --> 00:13:32,079
Speaker 2: given because you're saying that you might want to retire

290
00:13:32,080 --> 00:13:33,760
Speaker 2: in like seven nine years or something like that. But

291
00:13:33,800 --> 00:13:35,480
Speaker 2: maybe you get to that point you're like, yeah, yeah,

292
00:13:35,480 --> 00:13:37,760
Speaker 2: I actually do enjoy working. I am able to provide

293
00:13:37,800 --> 00:13:39,680
Speaker 2: that value, or I'm just going part time. Who knows

294
00:13:39,840 --> 00:13:41,760
Speaker 2: something that I want to continue to do. I will

295
00:13:41,760 --> 00:13:45,280
Speaker 2: say too. One way though, to get around that fixed

296
00:13:45,360 --> 00:13:48,240
Speaker 2: timeline aspect of target date funds is I've seen some

297
00:13:48,320 --> 00:13:52,280
Speaker 2: folks basically like target date fund hack, where if they like,

298
00:13:52,320 --> 00:13:54,679
Speaker 2: if you know that you are willing to accept a

299
00:13:54,679 --> 00:13:57,360
Speaker 2: little more risk instead of choosing say a twenty thirty

300
00:13:57,400 --> 00:13:59,120
Speaker 2: five fund. If you know that you're going to retire

301
00:13:59,120 --> 00:14:01,160
Speaker 2: in twenty thirty five, well instead looking at a twenty

302
00:14:01,200 --> 00:14:05,240
Speaker 2: forty fund or twenty forty five And it's like another

303
00:14:05,280 --> 00:14:09,160
Speaker 2: tick towards aggressive investing as opposed to what it is

304
00:14:09,160 --> 00:14:11,079
Speaker 2: that they think or I love that you just use

305
00:14:11,120 --> 00:14:13,320
Speaker 2: the term hack for that target date fund.

306
00:14:13,320 --> 00:14:15,599
Speaker 1: Hack is that really a calling it?

307
00:14:15,640 --> 00:14:17,200
Speaker 2: Well, it's a way to use it in a way

308
00:14:17,200 --> 00:14:19,560
Speaker 2: that it is not necessarily intended to be used.

309
00:14:19,680 --> 00:14:22,080
Speaker 1: Yeah, you're kind of it's the definitely appropriating it for

310
00:14:22,160 --> 00:14:23,960
Speaker 1: your own needs, which I think is great.

311
00:14:24,000 --> 00:14:26,680
Speaker 2: Yeah, it's just like a simple way to index for

312
00:14:26,880 --> 00:14:29,040
Speaker 2: maybe that is at a better word, like to index four.

313
00:14:29,080 --> 00:14:31,680
Speaker 2: Maybe that increased desire to expose yourself to risk. And

314
00:14:31,760 --> 00:14:33,920
Speaker 2: the flip side is true as well, if you if

315
00:14:34,000 --> 00:14:37,080
Speaker 2: you're out there listening and you're thinking, man, I really

316
00:14:37,160 --> 00:14:40,280
Speaker 2: want to expose myself to as little risk as possible.

317
00:14:40,360 --> 00:14:42,160
Speaker 2: And again, you say you were planning to retire in

318
00:14:42,240 --> 00:14:44,520
Speaker 2: twenty thirty five, well you can go for that twenty

319
00:14:44,560 --> 00:14:48,080
Speaker 2: thirty fund, twenty twenty five fund whatever.

320
00:14:48,160 --> 00:14:49,920
Speaker 1: The truth is also that not all target date funds

321
00:14:49,960 --> 00:14:52,240
Speaker 1: are created equal, right, They're best to own inside of

322
00:14:52,280 --> 00:14:55,080
Speaker 1: a tax advantaged retirement account, and it's always important to

323
00:14:55,120 --> 00:14:58,440
Speaker 1: look at the expense ratio. Like Fidelity and Schwab, for instance,

324
00:14:58,480 --> 00:15:01,560
Speaker 1: have great products on this front that come with incredibly

325
00:15:01,600 --> 00:15:04,280
Speaker 1: low fees. I'm taking like point zero eight percent, which

326
00:15:04,320 --> 00:15:07,200
Speaker 1: is really really low, but that's not true for every

327
00:15:07,200 --> 00:15:09,400
Speaker 1: company out there, right, So, just to heads up for

328
00:15:09,440 --> 00:15:11,200
Speaker 1: other how to money listeners. You know, while we like

329
00:15:11,320 --> 00:15:15,000
Speaker 1: target date funds as an investment strategy, whether or not

330
00:15:15,000 --> 00:15:17,200
Speaker 1: you opt to go that route depends on what accounts

331
00:15:17,200 --> 00:15:20,000
Speaker 1: you're holding that investment in and if you have access

332
00:15:20,040 --> 00:15:21,960
Speaker 1: to some of the best low cost target date funds

333
00:15:22,040 --> 00:15:25,920
Speaker 1: or not even Matt, much to my chagrin, Fidelity charges

334
00:15:26,160 --> 00:15:28,440
Speaker 1: really high fees on target date funds, which just doesn't

335
00:15:28,480 --> 00:15:32,040
Speaker 1: make sense. And relative to yeah, yeah, I would Vanguard,

336
00:15:32,080 --> 00:15:34,160
Speaker 1: and we're talking three quarters of a point, I think

337
00:15:34,200 --> 00:15:35,560
Speaker 1: basically for some of those.

338
00:15:35,640 --> 00:15:37,520
Speaker 2: Target date funds, I mean, I guess when it comes

339
00:15:37,520 --> 00:15:40,280
Speaker 2: to their lineup, they offer the absolute lowest when it

340
00:15:40,280 --> 00:15:42,320
Speaker 2: comes to certain products like they're in like the you know,

341
00:15:42,360 --> 00:15:44,400
Speaker 2: you can get a total stock market index fund or

342
00:15:44,440 --> 00:15:45,240
Speaker 2: et if you can.

343
00:15:45,120 --> 00:15:47,320
Speaker 1: Get a loss leader, yes exactly.

344
00:15:47,360 --> 00:15:49,920
Speaker 2: I think that might be how this is working because

345
00:15:49,920 --> 00:15:52,440
Speaker 2: they're able to kind of rope folks in perhaps with

346
00:15:52,800 --> 00:15:56,360
Speaker 2: the guess what you're gonna pay nothing? Literally, like you,

347
00:15:56,720 --> 00:15:59,920
Speaker 2: it's infinitely better than anything else, like anything divided by

348
00:16:00,400 --> 00:16:03,600
Speaker 2: zero zero. Like, it makes a lot of sense to

349
00:16:03,600 --> 00:16:06,920
Speaker 2: consider fidelity if in particular, you're a younger investor and

350
00:16:06,960 --> 00:16:09,840
Speaker 2: you want to aggressively, aggressively invest in the stock market.

351
00:16:10,240 --> 00:16:13,400
Speaker 2: But yeah, don't necessarily assume that it's a slam dunk

352
00:16:13,480 --> 00:16:16,240
Speaker 2: decision to go with a fidelity target date fund. Yeah.

353
00:16:16,280 --> 00:16:18,080
Speaker 1: Yeah, And so you have to be aware if you're

354
00:16:18,080 --> 00:16:20,600
Speaker 1: looking inside of your four oh one K plan at work,

355
00:16:20,680 --> 00:16:22,400
Speaker 1: you have to look at the fees associated with it.

356
00:16:22,440 --> 00:16:24,680
Speaker 1: Don't just assume, oh, target date fund, it's going to

357
00:16:24,720 --> 00:16:26,360
Speaker 1: be great and it's going to be low cost. And

358
00:16:26,760 --> 00:16:29,040
Speaker 1: I wish they were all as great as like Vanguard

359
00:16:29,080 --> 00:16:30,280
Speaker 1: and swamps, but sadly they're not.

360
00:16:30,320 --> 00:16:33,000
Speaker 2: Yeah, the details matter, and quickly, real quick. You mentioned

361
00:16:33,280 --> 00:16:36,760
Speaker 2: that target date funds are best inside retirement accounts specifically,

362
00:16:36,840 --> 00:16:38,880
Speaker 2: and we we actually talked about this, I think guess

363
00:16:38,960 --> 00:16:42,120
Speaker 2: was last year maybe when the guard Yeah, and so

364
00:16:42,160 --> 00:16:44,680
Speaker 2: the reason you want you don't necessarily want to own

365
00:16:44,680 --> 00:16:47,160
Speaker 2: a target date fund in a taxable account, So a

366
00:16:47,200 --> 00:16:50,200
Speaker 2: brokerage account is because of the interest that bonds pays,

367
00:16:50,200 --> 00:16:51,920
Speaker 2: because of the dividends that the stocks put off. But

368
00:16:51,920 --> 00:16:58,200
Speaker 2: specifically when the fund managers, even though it's software, sometimes

369
00:16:58,240 --> 00:17:01,320
Speaker 2: they have to sell portions of the underlying fund and

370
00:17:01,400 --> 00:17:04,000
Speaker 2: when they do that, there is taxable capital gains that

371
00:17:04,040 --> 00:17:07,359
Speaker 2: gets passed along to you as shareholders. This has happened

372
00:17:07,400 --> 00:17:09,199
Speaker 2: with other companies as well, but most notably I think

373
00:17:09,240 --> 00:17:11,119
Speaker 2: it happened to Vanguard last year. But there are some

374
00:17:11,160 --> 00:17:13,800
Speaker 2: folks who were stuck with massive tax bills for that

375
00:17:13,920 --> 00:17:16,960
Speaker 2: year because of some of the rebalancing that was taking

376
00:17:16,960 --> 00:17:19,520
Speaker 2: place within these target date funds.

377
00:17:19,560 --> 00:17:20,920
Speaker 1: Yeah, and it was completely unexpected.

378
00:17:20,960 --> 00:17:23,840
Speaker 2: It was unexpected. That's the thing, right, because tax deferre account.

379
00:17:23,880 --> 00:17:25,320
Speaker 2: You're going to pay that tax eventually anyway.

380
00:17:25,400 --> 00:17:26,600
Speaker 1: And they were like, but I'm not the one who

381
00:17:26,600 --> 00:17:28,240
Speaker 1: made this choice. It was the fund manager who made

382
00:17:28,240 --> 00:17:28,560
Speaker 1: the choice.

383
00:17:28,680 --> 00:17:30,800
Speaker 2: Yes, but when you are in retirement, you are making

384
00:17:30,840 --> 00:17:33,399
Speaker 2: your planning for that. But when you're just in your

385
00:17:33,440 --> 00:17:37,040
Speaker 2: typical working years and that it's a surprise basically, that's

386
00:17:37,080 --> 00:17:39,040
Speaker 2: when it can really end up biting you in the butts.

387
00:17:39,400 --> 00:17:41,600
Speaker 2: That's why you don't want to own target date funds

388
00:17:41,600 --> 00:17:43,920
Speaker 2: within a brokerage account. You want to keep those within

389
00:17:44,000 --> 00:17:47,080
Speaker 2: those tax deferred accounts. And Jolie. We were talking about

390
00:17:47,160 --> 00:17:49,200
Speaker 2: renters here at the top of the episode, talking about

391
00:17:49,240 --> 00:17:51,840
Speaker 2: joll Sis. We actually have a question from a listener

392
00:17:51,840 --> 00:17:54,040
Speaker 2: and she is going to have some new renters moving

393
00:17:54,080 --> 00:17:56,760
Speaker 2: in next door. Let's get to her question plus another

394
00:17:56,920 --> 00:17:58,159
Speaker 2: right after this break.

395
00:18:07,400 --> 00:18:09,639
Speaker 1: All right, Matt, let's keep going with ask kind of

396
00:18:09,640 --> 00:18:12,439
Speaker 1: money questions. This next one comes from a listener in

397
00:18:12,480 --> 00:18:14,600
Speaker 1: California who's trying to decide whether or not he should

398
00:18:14,600 --> 00:18:16,680
Speaker 1: pay off his low interest rate mortgage early.

399
00:18:17,200 --> 00:18:20,639
Speaker 6: You're there. I have a question regarding the classic payoff

400
00:18:20,720 --> 00:18:25,440
Speaker 6: mortgage early versus invest dilemma. More specifically than just which

401
00:18:25,480 --> 00:18:27,920
Speaker 6: one is better, I'm trying to understand if the rate

402
00:18:27,960 --> 00:18:30,600
Speaker 6: at which I pay off a mortgage early affects the

403
00:18:30,640 --> 00:18:34,280
Speaker 6: long term results. So, to make things simple, say I

404
00:18:34,320 --> 00:18:36,760
Speaker 6: have a five hundred thousand dollars balance on our mortgage

405
00:18:36,800 --> 00:18:39,199
Speaker 6: at a low three and a half interest rate, and

406
00:18:39,240 --> 00:18:41,280
Speaker 6: I know some people will think we're crazy for even

407
00:18:41,280 --> 00:18:45,040
Speaker 6: considering paying this off early. We are high earners, and

408
00:18:45,160 --> 00:18:48,400
Speaker 6: if we put most of our extra monthly savings to it,

409
00:18:48,760 --> 00:18:51,280
Speaker 6: we could likely pay off the mortgage in the next

410
00:18:51,280 --> 00:18:54,600
Speaker 6: two to three years. Take into account we also max

411
00:18:54,680 --> 00:18:57,280
Speaker 6: out our four oh one K contributions and don't have

412
00:18:57,359 --> 00:19:01,880
Speaker 6: any other debt. After those two to three years, all

413
00:19:01,920 --> 00:19:07,600
Speaker 6: of our extra income would then start going into additional investments. So, ultimately,

414
00:19:07,640 --> 00:19:10,320
Speaker 6: my question is does paying off a mortgage in a

415
00:19:10,359 --> 00:19:14,920
Speaker 6: short period of time make it mathematically better than if

416
00:19:14,960 --> 00:19:17,960
Speaker 6: we spread out those payments over a longer period of time,

417
00:19:18,160 --> 00:19:22,399
Speaker 6: like paying it off early in the next seven to

418
00:19:22,440 --> 00:19:26,800
Speaker 6: ten years. Alternatively, if we just paid the minimum on

419
00:19:26,840 --> 00:19:29,600
Speaker 6: our mortgage, we'd end up with about that five hundred

420
00:19:29,640 --> 00:19:33,520
Speaker 6: thousand in initial investments over the next two to three years.

421
00:19:34,200 --> 00:19:36,919
Speaker 6: And another way to look at it is if the

422
00:19:37,000 --> 00:19:39,600
Speaker 6: two to three years of compound interest that I'm giving

423
00:19:39,680 --> 00:19:42,800
Speaker 6: up by paying off the mortgage early will make much

424
00:19:42,800 --> 00:19:46,080
Speaker 6: of a difference in the total amount twenty to thirty

425
00:19:46,359 --> 00:19:50,000
Speaker 6: years from now when we retire. I hope I'm making sense.

426
00:19:50,040 --> 00:19:54,280
Speaker 6: I've tried several different mortgage payoff verse investment calculators online,

427
00:19:54,359 --> 00:19:58,159
Speaker 6: and I can't quite understand if paying off a mortgage early,

428
00:19:58,600 --> 00:20:03,159
Speaker 6: quicker versus slower makes much of a difference in the

429
00:20:03,320 --> 00:20:06,440
Speaker 6: long run. Thanks a lot. This is Andrew from California,

430
00:20:06,600 --> 00:20:08,399
Speaker 6: and I really enjoy the show.

431
00:20:08,960 --> 00:20:12,160
Speaker 2: All right, Andrew, First of all, you are not crazy

432
00:20:12,280 --> 00:20:14,520
Speaker 2: for thinking about paying off your mortgage early.

433
00:20:14,640 --> 00:20:15,800
Speaker 1: We might be crazy, you don't know.

434
00:20:16,160 --> 00:20:18,439
Speaker 2: Well, not for this reason. I care not when it

435
00:20:18,440 --> 00:20:21,560
Speaker 2: comes to his finances, and that's because Andrew's crushing it

436
00:20:21,600 --> 00:20:24,840
Speaker 2: by maxing out his other tax of andre retirement accounts.

437
00:20:25,040 --> 00:20:27,800
Speaker 2: If Andrew, if you were asking this question, but maybe

438
00:20:27,840 --> 00:20:30,320
Speaker 2: you were doing a paltry job on that front when

439
00:20:30,359 --> 00:20:32,920
Speaker 2: it came to those tax of vantage accounts, we want

440
00:20:32,960 --> 00:20:36,560
Speaker 2: to help convince you to do more investing before going

441
00:20:36,560 --> 00:20:40,439
Speaker 2: down this route any further, before overly focusing on your mortgage,

442
00:20:40,520 --> 00:20:43,359
Speaker 2: especially with a low rate. But since you are trying

443
00:20:43,400 --> 00:20:45,840
Speaker 2: to take the both and approach, it's not either or.

444
00:20:45,880 --> 00:20:49,399
Speaker 2: You're not like, oh, I haven't I don't have anything

445
00:20:49,440 --> 00:20:52,520
Speaker 2: invested towards towards my return. I don't have any sort

446
00:20:52,560 --> 00:20:54,240
Speaker 2: of nest egg set aside. But I really want to

447
00:20:54,240 --> 00:20:55,960
Speaker 2: pay off my Workay. If that was the case, we'd

448
00:20:55,960 --> 00:20:58,119
Speaker 2: be giving you a different answer. But that's not the

449
00:20:58,280 --> 00:21:00,679
Speaker 2: position that you're in. You are taking the an approach

450
00:21:00,840 --> 00:21:03,560
Speaker 2: because of that, this is very much a personal decision

451
00:21:03,800 --> 00:21:06,200
Speaker 2: and you can do what seems best to you given

452
00:21:06,280 --> 00:21:09,959
Speaker 2: that combination of numbers but also of emotions that that

453
00:21:10,000 --> 00:21:13,000
Speaker 2: personal finance often straddles, right, Like you got to take

454
00:21:13,200 --> 00:21:15,200
Speaker 2: more into account than just the dollars and cents.

455
00:21:15,280 --> 00:21:17,479
Speaker 1: Sure, yeah, I mean if we were if we were

456
00:21:17,560 --> 00:21:21,520
Speaker 1: beings where math was the ultimate decider, we would all

457
00:21:21,560 --> 00:21:24,600
Speaker 1: be making much different decisions. Right. But the thing is,

458
00:21:24,640 --> 00:21:28,160
Speaker 1: personal finance has such an emotional component. It's we got

459
00:21:28,160 --> 00:21:30,240
Speaker 1: to factor that in to every answer that we give

460
00:21:30,280 --> 00:21:32,520
Speaker 1: into and too. Really whatever Matt and I talk about

461
00:21:32,560 --> 00:21:34,640
Speaker 1: that on the show, that matters, right, what the behavioral

462
00:21:34,720 --> 00:21:37,960
Speaker 1: element of what happens? Right, And the reason we would

463
00:21:37,960 --> 00:21:40,840
Speaker 1: typically recommend that folks keep the mortgage around is because

464
00:21:40,880 --> 00:21:43,880
Speaker 1: they're making the decision about investing versus paying off debt,

465
00:21:44,160 --> 00:21:47,320
Speaker 1: not investing more, but investing at all. Right, that's kind

466
00:21:47,359 --> 00:21:49,680
Speaker 1: of that's the way most people are. They're like, which

467
00:21:50,080 --> 00:21:51,600
Speaker 1: one should I be doing? And so if you're not

468
00:21:51,680 --> 00:21:54,080
Speaker 1: investing a significant amount of money for your future, if

469
00:21:54,119 --> 00:21:56,440
Speaker 1: you're not far along the money your spectrum, we don't

470
00:21:56,440 --> 00:21:59,359
Speaker 1: want you to prioritize mortgage payoff like that's that's especially

471
00:21:59,359 --> 00:22:00,680
Speaker 1: if you've got a three a half percent.

472
00:22:00,480 --> 00:22:03,359
Speaker 2: Rate, right, especially given the low Yeah, you're a low.

473
00:22:03,280 --> 00:22:06,399
Speaker 1: Rate, that's further down the line. They're just better places

474
00:22:06,440 --> 00:22:08,960
Speaker 1: for you to funnel those dollars. But if you've saved

475
00:22:08,960 --> 00:22:11,560
Speaker 1: and invested like a crazy person kind of like Andrew

476
00:22:11,600 --> 00:22:13,639
Speaker 1: has here, if you're doing the right thing on that front,

477
00:22:13,840 --> 00:22:15,760
Speaker 1: this is a This is really more of a personal

478
00:22:15,800 --> 00:22:17,880
Speaker 1: decision that you get to make right and so we'll

479
00:22:17,880 --> 00:22:19,399
Speaker 1: do our best to help you think through it, Andrew,

480
00:22:19,440 --> 00:22:21,320
Speaker 1: but kind of just want to say that at the

481
00:22:21,320 --> 00:22:24,600
Speaker 1: outset is really so much depends on a lot of

482
00:22:24,600 --> 00:22:27,040
Speaker 1: those particulars. What you've been doing up until this point.

483
00:22:27,119 --> 00:22:29,280
Speaker 1: Have you been a discipline saver and investor already, and

484
00:22:29,280 --> 00:22:31,520
Speaker 1: since you have, like you have more options at your disposal.

485
00:22:31,560 --> 00:22:31,960
Speaker 1: That's right.

486
00:22:32,000 --> 00:22:34,200
Speaker 2: But let's go ahead and talk about the numbers.

487
00:22:34,200 --> 00:22:34,320
Speaker 5: Though.

488
00:22:34,359 --> 00:22:37,120
Speaker 2: Let's talk about the math, because they do come into play.

489
00:22:37,160 --> 00:22:40,040
Speaker 2: They should help to inform your decision here, because yes,

490
00:22:40,119 --> 00:22:42,120
Speaker 2: to answer your question, the earlier that you pay off

491
00:22:42,119 --> 00:22:45,159
Speaker 2: the mortgage, the better it is for you from numbers,

492
00:22:45,200 --> 00:22:48,240
Speaker 2: from a return perspective, where you are on that timeline

493
00:22:48,280 --> 00:22:50,199
Speaker 2: within that loan that matters a great deal. And so,

494
00:22:50,280 --> 00:22:52,879
Speaker 2: for instance, let's say you were in year twenty five

495
00:22:53,680 --> 00:22:56,199
Speaker 2: of a thirty year mortgage. If so, we would tell

496
00:22:56,240 --> 00:22:58,800
Speaker 2: you to keep that puppy around. And that's because on

497
00:22:58,920 --> 00:23:01,359
Speaker 2: a thirty year mortgage three and a half percent, you

498
00:23:01,400 --> 00:23:04,200
Speaker 2: would have five times more of your monthly payment going

499
00:23:04,240 --> 00:23:08,000
Speaker 2: towards principle compared to the portion that's going towards interest.

500
00:23:08,359 --> 00:23:10,760
Speaker 2: So at that point, like your relative interest rate here

501
00:23:10,840 --> 00:23:14,200
Speaker 2: is much lower, and the overwhelming majority of your mortgage

502
00:23:14,200 --> 00:23:18,000
Speaker 2: payment is actually being being directly funneled into home equity,

503
00:23:18,080 --> 00:23:19,760
Speaker 2: like you are paying yourself essentially.

504
00:23:19,920 --> 00:23:21,000
Speaker 1: So if that were the.

505
00:23:20,960 --> 00:23:23,760
Speaker 2: Case, then why would you bother even paying it off

506
00:23:23,800 --> 00:23:25,720
Speaker 2: any more quickly than you had to that? Like, I mean,

507
00:23:25,960 --> 00:23:28,600
Speaker 2: I would most definitely just ride that thing off into

508
00:23:28,640 --> 00:23:29,120
Speaker 2: the sunset.

509
00:23:29,160 --> 00:23:30,879
Speaker 1: Once you get Yeah, once you get far enough along,

510
00:23:31,040 --> 00:23:33,840
Speaker 1: it's like, let it be. And the reason for this

511
00:23:33,960 --> 00:23:37,360
Speaker 1: is because mortgage payments are calculated using an amortization schedule.

512
00:23:37,560 --> 00:23:40,679
Speaker 1: So compare to someone who's on year twenty five with

513
00:23:40,680 --> 00:23:42,520
Speaker 1: a brand new homeowner who's on year one of those

514
00:23:42,520 --> 00:23:45,639
Speaker 1: payments right at the beginning of the amortization schedule, the

515
00:23:45,680 --> 00:23:48,480
Speaker 1: amount of your payment going towards interest is nearly double

516
00:23:48,600 --> 00:23:51,200
Speaker 1: the amount that's going towards principle. Right, this makes your

517
00:23:51,280 --> 00:23:53,959
Speaker 1: relative interest rate much higher during those early years when

518
00:23:54,600 --> 00:23:57,280
Speaker 1: you're basically a new homeowner. So, yes, Andrew, we would

519
00:23:57,280 --> 00:24:00,359
Speaker 1: say you stand to benefit more financially by getting that

520
00:24:00,400 --> 00:24:02,639
Speaker 1: loan within the first five to ten years than you

521
00:24:02,680 --> 00:24:05,120
Speaker 1: do by accelerating your payments at the end.

522
00:24:05,200 --> 00:24:08,080
Speaker 2: That's right. Yeah, So it does make sense to pay

523
00:24:08,080 --> 00:24:11,119
Speaker 2: off more of your mortgage earlier on in that timeline,

524
00:24:11,200 --> 00:24:13,399
Speaker 2: and of course when you have a higher interest rate.

525
00:24:13,440 --> 00:24:15,720
Speaker 2: And so it sounds like you are towards the beginning

526
00:24:16,080 --> 00:24:18,840
Speaker 2: of your your mortgage there, but you've also got a

527
00:24:18,880 --> 00:24:22,639
Speaker 2: pretty dang good rate given the current economic environment that

528
00:24:22,640 --> 00:24:25,080
Speaker 2: we're in. And say, something else to think long and

529
00:24:25,119 --> 00:24:27,840
Speaker 2: hard about is what other goals money goals that you

530
00:24:27,920 --> 00:24:29,840
Speaker 2: might have. Up until now, we've just kind of talked

531
00:24:29,840 --> 00:24:31,880
Speaker 2: about the numbers. We've talked about the math, but now

532
00:24:31,880 --> 00:24:35,080
Speaker 2: it's we're kind of addressing the more personal and emotional

533
00:24:35,200 --> 00:24:37,439
Speaker 2: side of things. What is it going to feel like

534
00:24:37,480 --> 00:24:40,000
Speaker 2: for you, for you and your partner if you've got

535
00:24:40,040 --> 00:24:44,440
Speaker 2: a home that's debt free. Would greater amounts of liquidity,

536
00:24:44,600 --> 00:24:47,119
Speaker 2: having more savings on hand, Would that actually give you

537
00:24:47,160 --> 00:24:49,959
Speaker 2: even more peace from a financial standpoint? Maybe what you

538
00:24:50,040 --> 00:24:52,439
Speaker 2: are realizing is that, you know what, I don't have

539
00:24:52,480 --> 00:24:54,560
Speaker 2: any concerns about my ability to pay down my mortgage,

540
00:24:54,600 --> 00:24:56,119
Speaker 2: but if we had more cash in the bank, that

541
00:24:56,160 --> 00:24:59,600
Speaker 2: would actually, oh maybe that would be fantastic.

542
00:24:59,160 --> 00:25:01,040
Speaker 1: Or maybe it'll allow me to to start the business

543
00:25:01,160 --> 00:25:03,400
Speaker 1: or make us feel like we could start a family,

544
00:25:03,640 --> 00:25:06,560
Speaker 1: whereas a paidoff mortgage it might not make you feel

545
00:25:06,560 --> 00:25:06,880
Speaker 1: the same.

546
00:25:07,160 --> 00:25:10,800
Speaker 2: Yeah. Absolutely, Basically, we want to expand your options from

547
00:25:10,960 --> 00:25:13,160
Speaker 2: just it's not a dichotomy here. It's not you take

548
00:25:13,200 --> 00:25:15,200
Speaker 2: all this money and either invested in the market or

549
00:25:15,240 --> 00:25:17,280
Speaker 2: take all this money and pay down a mortgage. You

550
00:25:17,280 --> 00:25:18,760
Speaker 2: can just sit on that money for a little bit,

551
00:25:18,760 --> 00:25:21,320
Speaker 2: and I think it's worth taking some time if you

552
00:25:21,359 --> 00:25:25,760
Speaker 2: don't necessarily have some of these additional personal finance goals

553
00:25:25,800 --> 00:25:30,119
Speaker 2: to brainstorm to dream, We've got how to money money

554
00:25:30,119 --> 00:25:31,840
Speaker 2: mission statement that will link to in the show notes

555
00:25:32,160 --> 00:25:36,240
Speaker 2: within this episode that might ask some questions of you

556
00:25:36,640 --> 00:25:39,359
Speaker 2: that could allow you to maybe expand your horizons a

557
00:25:39,400 --> 00:25:41,119
Speaker 2: little bit as to what it is that you could

558
00:25:41,200 --> 00:25:44,040
Speaker 2: possibly do with your money, Things that you thought maybe like, oh,

559
00:25:44,080 --> 00:25:46,439
Speaker 2: we would we could never do that, But it's like, well, no,

560
00:25:47,080 --> 00:25:50,040
Speaker 2: you're talking about serious amounts like two to three years,

561
00:25:50,040 --> 00:25:51,800
Speaker 2: he's going to have five hundred thousand dollars on hand.

562
00:25:51,840 --> 00:25:54,440
Speaker 2: You could do a lot with that money. And I

563
00:25:54,480 --> 00:25:56,959
Speaker 2: think there's more options that you might have. There's more

564
00:25:56,960 --> 00:25:59,480
Speaker 2: at your disposal than you're giving yourself credit for.

565
00:25:59,640 --> 00:26:03,040
Speaker 1: Yeah, that I think it's important to note that taking

566
00:26:03,119 --> 00:26:07,040
Speaker 1: time is only benefiting you from a multitude of standpoints, right,

567
00:26:07,119 --> 00:26:09,720
Speaker 1: because you have the locked in low rate, and because

568
00:26:09,760 --> 00:26:11,720
Speaker 1: money that you have in a savings account, if it's

569
00:26:11,720 --> 00:26:13,720
Speaker 1: with a high yield savings account and with one of

570
00:26:13,760 --> 00:26:16,000
Speaker 1: the online banks that we love, you're actually getting paid

571
00:26:16,040 --> 00:26:20,160
Speaker 1: a decent rate, actually in excess of what your interest

572
00:26:20,240 --> 00:26:21,080
Speaker 1: rate is on the mortgage.

573
00:26:21,119 --> 00:26:23,760
Speaker 2: So there's a real spread there. And so yeah, that's

574
00:26:23,840 --> 00:26:26,800
Speaker 2: that's such a great argument for sitting on that cash,

575
00:26:26,880 --> 00:26:28,760
Speaker 2: right because you can calculate, like you can run the

576
00:26:28,800 --> 00:26:32,320
Speaker 2: amateurization schedule and say, all right, we're gonna pay x

577
00:26:32,320 --> 00:26:36,080
Speaker 2: amount of dollars in interest this year by keeping the mortgage,

578
00:26:36,119 --> 00:26:38,760
Speaker 2: by keeping that loan around. But just take all that

579
00:26:38,840 --> 00:26:40,920
Speaker 2: money and stick it in your high old savings and

580
00:26:40,960 --> 00:26:42,520
Speaker 2: you're gonna earn five percent. There's gonna be a decent

581
00:26:42,560 --> 00:26:44,560
Speaker 2: spread there. So not only like you are coming out

582
00:26:44,600 --> 00:26:47,680
Speaker 2: ahead from a math and numbers standpoint, but that also

583
00:26:47,800 --> 00:26:50,240
Speaker 2: just buys you more time that then allows you to

584
00:26:50,280 --> 00:26:52,280
Speaker 2: figure out what some of you what some of your

585
00:26:52,280 --> 00:26:53,720
Speaker 2: other financial goals might be. Yeah.

586
00:26:53,760 --> 00:26:56,040
Speaker 1: And again, if if we were answering a question based

587
00:26:56,080 --> 00:27:00,399
Speaker 1: on investing more versus kind of consumption sort of thing, like,

588
00:27:00,440 --> 00:27:02,879
Speaker 1: that's a different that's a different answer as well. But

589
00:27:03,080 --> 00:27:05,040
Speaker 1: either way you go, giving your high income, giving your

590
00:27:05,080 --> 00:27:08,480
Speaker 1: frugal habits and attention to detail, you can't screw this up, Andrew. Really,

591
00:27:08,760 --> 00:27:11,240
Speaker 1: it's it's a matter of preference at this point, given

592
00:27:11,280 --> 00:27:13,840
Speaker 1: the fact that you're kind of keeping your debt to

593
00:27:13,880 --> 00:27:18,040
Speaker 1: a minimum, that you are investing like gangbusters, and so

594
00:27:18,720 --> 00:27:21,960
Speaker 1: you're basically so far along the money gear spectrum that

595
00:27:22,080 --> 00:27:24,560
Speaker 1: you get to make this choice based on whatever feels right.

596
00:27:24,880 --> 00:27:27,040
Speaker 1: And that kind of might sound like a cop out,

597
00:27:27,080 --> 00:27:29,840
Speaker 1: but it's true, right, Yeah, And you have that ability

598
00:27:29,880 --> 00:27:34,280
Speaker 1: to make maybe the slightly less optimal financial decision in

599
00:27:34,359 --> 00:27:38,720
Speaker 1: favor of the slightly more optimized emotional and relational one.

600
00:27:38,920 --> 00:27:41,240
Speaker 2: Yeah. I feel like one of the questions he's asking

601
00:27:41,280 --> 00:27:43,160
Speaker 2: without asking us directly, is like, what is the stock

602
00:27:43,200 --> 00:27:46,359
Speaker 2: market going to do over the next two to three years?

603
00:27:46,680 --> 00:27:49,040
Speaker 2: Let me get your crystal ball out because basically he's

604
00:27:49,040 --> 00:27:50,600
Speaker 2: saying in three years that the house is going to

605
00:27:50,640 --> 00:27:53,080
Speaker 2: be paid off and then they can really focus on investing.

606
00:27:53,240 --> 00:27:55,919
Speaker 2: But like you said, again, we do know what banks

607
00:27:55,920 --> 00:27:57,840
Speaker 2: are currently paying in high yield savings, and so that

608
00:27:58,040 --> 00:28:00,760
Speaker 2: is guaranteed. Rates can always sha but at that point

609
00:28:00,760 --> 00:28:02,359
Speaker 2: you can always do something else with your money. So

610
00:28:02,640 --> 00:28:04,640
Speaker 2: it feels me I would totally hang onto this mortgage

611
00:28:04,680 --> 00:28:07,360
Speaker 2: regardless indefinitely, because yeah.

612
00:28:07,119 --> 00:28:09,280
Speaker 1: I mean, I'm not paying off any of my mortgages early.

613
00:28:09,320 --> 00:28:13,080
Speaker 1: I'm trying to keep my debt reasonable on rental properties

614
00:28:13,119 --> 00:28:16,760
Speaker 1: and primary residences, always trying to put twenty percent down

615
00:28:16,840 --> 00:28:19,840
Speaker 1: at least, but I'm not rushing to pay anything off.

616
00:28:19,840 --> 00:28:24,679
Speaker 1: I'd rather make more positive moves for, you know, to

617
00:28:24,720 --> 00:28:26,560
Speaker 1: grow my wealth for the future. And you know what,

618
00:28:26,720 --> 00:28:28,159
Speaker 1: you can always keep that in your back pocket and

619
00:28:28,160 --> 00:28:30,400
Speaker 1: start paying more or pay those off at a later date.

620
00:28:30,440 --> 00:28:33,280
Speaker 1: But really, Andrew, this is up to you man, and

621
00:28:33,640 --> 00:28:36,480
Speaker 1: best of luck. But Matt, let's get to the next question.

622
00:28:36,560 --> 00:28:40,479
Speaker 1: This one is about how to respond when tenants move

623
00:28:40,520 --> 00:28:41,120
Speaker 1: in next door.

624
00:28:41,680 --> 00:28:44,800
Speaker 5: I had the money. This is Gina from upstate New York,

625
00:28:45,480 --> 00:28:51,520
Speaker 5: and I'd like your opinions as landlords, I am having

626
00:28:51,600 --> 00:28:54,960
Speaker 5: a couple of trees removed, and the tree company wants

627
00:28:55,000 --> 00:28:59,560
Speaker 5: to use the next door neighbors driveway. I called that

628
00:28:59,640 --> 00:29:05,040
Speaker 5: name who just closed on the house last week and

629
00:29:05,320 --> 00:29:10,440
Speaker 5: as an investor, and he said, yeah, that's fine. I

630
00:29:10,480 --> 00:29:13,920
Speaker 5: just need a statement for any damage to be covered.

631
00:29:14,560 --> 00:29:17,840
Speaker 5: But it got me thinking, what are some things I

632
00:29:17,880 --> 00:29:23,920
Speaker 5: should be cautious of and aware of going forward with

633
00:29:24,320 --> 00:29:29,800
Speaker 5: now having the new dynamic of having tenants next door

634
00:29:30,440 --> 00:29:34,240
Speaker 5: where in the past ten years I was always on

635
00:29:34,280 --> 00:29:37,760
Speaker 5: the other side of that, So now I would like

636
00:29:37,880 --> 00:29:42,960
Speaker 5: to simply be prepared. I hope this question leads to

637
00:29:43,040 --> 00:29:48,000
Speaker 5: some good discussion and I look forward to the show.

638
00:29:48,320 --> 00:29:51,520
Speaker 1: Thanks Matt. This question comes from Gina and I really

639
00:29:51,640 --> 00:29:55,320
Speaker 1: want to go on Martin from the ninety sitcom Dang,

640
00:29:55,360 --> 00:29:55,640
Speaker 1: do you know?

641
00:29:55,760 --> 00:29:56,239
Speaker 2: Go do it.

642
00:29:56,840 --> 00:30:00,000
Speaker 1: I'll get out of r But let's talk about it

643
00:30:00,160 --> 00:30:03,360
Speaker 1: tree and tenant issues with neighbors. Let's start by discussing

644
00:30:03,400 --> 00:30:07,120
Speaker 1: the tree thing first. And this request right in a

645
00:30:07,120 --> 00:30:10,880
Speaker 1: tree situation is perfectly reasonable. Right and big old trees

646
00:30:10,880 --> 00:30:12,600
Speaker 1: close to the property line sometimes you got to get

647
00:30:12,680 --> 00:30:15,960
Speaker 1: on the other side of the property and most neighbors

648
00:30:16,080 --> 00:30:18,360
Speaker 1: understand this. I'm glad. It sounds like this landlord, this

649
00:30:18,440 --> 00:30:21,400
Speaker 1: new owner of the property next door, understands it too.

650
00:30:21,600 --> 00:30:23,600
Speaker 1: And I guess for any and all how the money

651
00:30:23,600 --> 00:30:26,080
Speaker 1: listeners though, wanting to have a tree removed or pruned,

652
00:30:26,440 --> 00:30:28,400
Speaker 1: or really any other work done around your house, you

653
00:30:28,440 --> 00:30:30,320
Speaker 1: want to make sure the person performing the work is

654
00:30:30,400 --> 00:30:34,600
Speaker 1: licensed and insured. So, Matt, I had a tree removed

655
00:30:34,680 --> 00:30:38,280
Speaker 1: at my last house, and when they were grinding the stump,

656
00:30:38,640 --> 00:30:41,920
Speaker 1: a big chunk flew through and broke my neighbor's window. Fortunately,

657
00:30:41,960 --> 00:30:44,400
Speaker 1: the company I hired was licensed and insured, and so

658
00:30:44,440 --> 00:30:45,680
Speaker 1: they took care of it. I don't know if they

659
00:30:45,720 --> 00:30:48,240
Speaker 1: even had to tap their insurance, but just in case, right,

660
00:30:48,320 --> 00:30:50,040
Speaker 1: just in case they say, what are you talking about?

661
00:30:50,080 --> 00:30:51,840
Speaker 1: That wasn't me. You want to make sure that they're

662
00:30:51,840 --> 00:30:55,520
Speaker 1: licensed and insured. And so I would make sure, Gina,

663
00:30:55,600 --> 00:30:59,080
Speaker 1: whoever you hire to do the work, that they're covered, right,

664
00:30:59,120 --> 00:31:01,320
Speaker 1: so that in case something happens, you're not out of

665
00:31:01,320 --> 00:31:04,080
Speaker 1: pocket additional money. And then also, I guess, just just

666
00:31:04,240 --> 00:31:06,800
Speaker 1: one more thing, plenty of good reviews are something else

667
00:31:06,800 --> 00:31:10,400
Speaker 1: worth prioritizing. One of the company that we had when

668
00:31:10,480 --> 00:31:12,120
Speaker 1: the tree fell through our roof map the company we

669
00:31:12,160 --> 00:31:15,480
Speaker 1: had to do the work. They were awesome, and so

670
00:31:15,600 --> 00:31:17,880
Speaker 1: much of it was word of mouth from neighbors. But

671
00:31:17,920 --> 00:31:19,760
Speaker 1: then I looked at the reviews and it was like, man,

672
00:31:19,880 --> 00:31:22,800
Speaker 1: people love this company and they make things right when

673
00:31:22,800 --> 00:31:24,360
Speaker 1: they screw up, and they did that in my case.

674
00:31:24,400 --> 00:31:27,200
Speaker 2: So performing some of that due diligence on the front

675
00:31:27,280 --> 00:31:30,280
Speaker 2: end can save you a lot of headache down the road.

676
00:31:30,600 --> 00:31:34,400
Speaker 2: Were something less than ideal for that to happen. But Gina,

677
00:31:34,680 --> 00:31:36,800
Speaker 2: now that your next door neighbor, though, is a tenant's

678
00:31:37,040 --> 00:31:41,000
Speaker 2: not a homeowner home owner occupant, should that change anything else?

679
00:31:41,680 --> 00:31:44,760
Speaker 2: I don't think there's necessarily anything that you should be

680
00:31:44,880 --> 00:31:47,680
Speaker 2: worried about. You know, like there are some of those

681
00:31:47,800 --> 00:31:52,680
Speaker 2: stereotypes with the absent landlord. Those stereotypes exist for a reason.

682
00:31:53,200 --> 00:31:55,680
Speaker 2: A landlord is running a business, and so you know

683
00:31:55,720 --> 00:31:59,720
Speaker 2: they're likely going to do, say, less beautifying on that

684
00:31:59,760 --> 00:32:02,560
Speaker 2: home than an actual home owner would. But I honestly

685
00:32:02,560 --> 00:32:04,560
Speaker 2: wouldn't fret too much about that. You know, there might

686
00:32:04,600 --> 00:32:06,320
Speaker 2: not be quite as much curb appeal now that the

687
00:32:06,320 --> 00:32:08,080
Speaker 2: houses are rental and they've got renterers in there, but

688
00:32:08,120 --> 00:32:11,520
Speaker 2: hopefully it won't impact your ability to happily live next door.

689
00:32:11,560 --> 00:32:13,960
Speaker 2: It makes me think our first house that we owned,

690
00:32:14,000 --> 00:32:16,640
Speaker 2: we had we had a renter a house that was

691
00:32:16,680 --> 00:32:19,320
Speaker 2: a rental across the street but then also next door

692
00:32:19,360 --> 00:32:22,840
Speaker 2: to us, and we didn't really care at all. And

693
00:32:23,160 --> 00:32:25,200
Speaker 2: the one in particular across the street, like it was

694
00:32:25,280 --> 00:32:27,960
Speaker 2: kind of I mean, maybe it's changed, but like when

695
00:32:28,000 --> 00:32:29,480
Speaker 2: we first bought there, it was kind of an ice ore,

696
00:32:29,560 --> 00:32:32,640
Speaker 2: you know, like it hadn't been painted in forever, like

697
00:32:32,720 --> 00:32:35,120
Speaker 2: the grass would get pretty dang long out front. But

698
00:32:35,200 --> 00:32:37,800
Speaker 2: personally it was just like, yeah, it didn't really bother

699
00:32:37,880 --> 00:32:39,960
Speaker 2: us on it. It probably had an impact on when

700
00:32:39,960 --> 00:32:42,920
Speaker 2: we moved out, our ability for what we were able

701
00:32:42,920 --> 00:32:44,840
Speaker 2: to charge for the reasons. There might be other folks

702
00:32:45,080 --> 00:32:47,280
Speaker 2: who might be a little more sensitive to that, but

703
00:32:47,360 --> 00:32:50,840
Speaker 2: for you, obviously it comes down to your personal preference

704
00:32:50,880 --> 00:32:52,920
Speaker 2: and honestly who was living there before, because maybe you

705
00:32:52,920 --> 00:32:55,520
Speaker 2: had the best neighbor ever that was living next door,

706
00:32:55,600 --> 00:32:58,120
Speaker 2: and now they moved out and the landlord bought this house,

707
00:32:58,160 --> 00:32:59,080
Speaker 2: and you're never gonna.

708
00:32:58,880 --> 00:33:01,680
Speaker 1: Like whoever lives there compared to who used to live there.

709
00:33:01,800 --> 00:33:03,680
Speaker 2: So I don't know all things to keep in mind,

710
00:33:03,720 --> 00:33:05,080
Speaker 2: but I guess I don't want you to go into

711
00:33:05,120 --> 00:33:07,720
Speaker 2: it with a mindset of thinking, oh my gosh, there's

712
00:33:07,840 --> 00:33:08,440
Speaker 2: an investor.

713
00:33:08,520 --> 00:33:10,760
Speaker 1: This is going to totally suck. Yeah. And one thing

714
00:33:10,760 --> 00:33:13,000
Speaker 1: I would do, though, Matt, is to keep the number

715
00:33:13,040 --> 00:33:15,440
Speaker 1: of the landlord handy, Right. You certainly don't want to

716
00:33:15,600 --> 00:33:17,920
Speaker 1: be the neighbor who's bring every last thing to his attention. Hey,

717
00:33:17,920 --> 00:33:19,320
Speaker 1: I see a weed in the front yard like that

718
00:33:19,360 --> 00:33:21,440
Speaker 1: kind of thing. Right, That landlord's going to get annoyed

719
00:33:21,440 --> 00:33:24,000
Speaker 1: pretty quickly. But it's not a bad idea to tell

720
00:33:24,040 --> 00:33:25,680
Speaker 1: them that you're happy to be an extra set of eyes.

721
00:33:25,720 --> 00:33:29,000
Speaker 1: And it's not even out of negligence necessarily, but a

722
00:33:29,000 --> 00:33:30,760
Speaker 1: tenant might not notice something on the outside of the

723
00:33:30,760 --> 00:33:34,200
Speaker 1: house it's facing you, and even an intune landlord, they

724
00:33:34,280 --> 00:33:36,320
Speaker 1: might miss a shared fence that's in need of some

725
00:33:36,360 --> 00:33:37,280
Speaker 1: repair or something like that.

726
00:33:37,320 --> 00:33:39,520
Speaker 2: So, yeah, like on your side of the house, up

727
00:33:39,560 --> 00:33:41,240
Speaker 2: in the corner, that's what the squirrels are getting.

728
00:33:41,040 --> 00:33:42,000
Speaker 1: In, right exactly, Like.

729
00:33:41,920 --> 00:33:43,280
Speaker 2: Hey, just so you know, you like to snap a

730
00:33:43,280 --> 00:33:45,880
Speaker 2: picture of the cute squirrels running in and out. Yeah,

731
00:33:46,320 --> 00:33:48,400
Speaker 2: send an exterminator to show up.

732
00:33:48,520 --> 00:33:50,960
Speaker 1: And if there's something like, hey, guess what these tree

733
00:33:50,960 --> 00:33:53,400
Speaker 1: limbs are? Certain social electrical wires, you might want to

734
00:33:53,440 --> 00:33:56,600
Speaker 1: do something to prove him back, like it make him

735
00:33:56,600 --> 00:33:59,840
Speaker 1: aware of certain things. Again, don't be the annoying pesky

736
00:34:00,400 --> 00:34:03,800
Speaker 1: but like, yeah, stay in contact, stay in on good terms.

737
00:34:04,240 --> 00:34:06,720
Speaker 1: I think a good landlord is more than willing to

738
00:34:06,720 --> 00:34:08,600
Speaker 1: spend money to keep their property in good shape for

739
00:34:08,680 --> 00:34:11,960
Speaker 1: current and future tenants. But keeping that relationship amiable and

740
00:34:12,520 --> 00:34:14,800
Speaker 1: every once in a while bringing those things to his

741
00:34:15,480 --> 00:34:18,560
Speaker 1: attention is probably the best way to go about it.

742
00:34:18,800 --> 00:34:21,000
Speaker 2: Yeah. Well, and if you've already got his phone number

743
00:34:21,000 --> 00:34:23,360
Speaker 2: as well, Like, I see this almost as an advantage

744
00:34:23,360 --> 00:34:25,600
Speaker 2: because guess what, you now know the person who's in

745
00:34:25,680 --> 00:34:31,359
Speaker 2: charge of getting you new neighbors. Aka, you can now

746
00:34:31,400 --> 00:34:34,200
Speaker 2: have an impact or you can now influence your landlord

747
00:34:34,239 --> 00:34:36,600
Speaker 2: as to who moves in next door. If I'm just

748
00:34:37,040 --> 00:34:40,640
Speaker 2: I'm speaking from like landlord perspective here. If I had

749
00:34:40,800 --> 00:34:42,840
Speaker 2: a neighbor a house that was next to one of

750
00:34:42,840 --> 00:34:46,200
Speaker 2: my renolds, and they knew that Elise was coming up,

751
00:34:46,280 --> 00:34:48,040
Speaker 2: or that typically I get new renters in there in

752
00:34:48,040 --> 00:34:50,080
Speaker 2: the spring or in the summer. If I was the

753
00:34:50,320 --> 00:34:52,239
Speaker 2: if there's a neighbor that would call me and say, hey,

754
00:34:52,680 --> 00:34:54,560
Speaker 2: I've got some potential renders for you. Some friends of

755
00:34:54,600 --> 00:34:56,920
Speaker 2: mine would love to move to the neighborhood. I would

756
00:34:57,239 --> 00:35:01,040
Speaker 2: be thrilled for a couple of reasons. One, there's a

757
00:35:01,080 --> 00:35:03,120
Speaker 2: sense of community. Right if you're living next to somebody

758
00:35:03,120 --> 00:35:04,799
Speaker 2: that's that's your friend, that's pretty cool.

759
00:35:05,040 --> 00:35:05,160
Speaker 6: Uh.

760
00:35:05,320 --> 00:35:08,200
Speaker 2: And I feel like that kind of strengthen strengthens the neighborhood.

761
00:35:08,520 --> 00:35:10,319
Speaker 2: But also I think if you've got a friend next door,

762
00:35:10,640 --> 00:35:13,279
Speaker 2: that renter is less likely to move on because y'all

763
00:35:13,280 --> 00:35:15,719
Speaker 2: are buds and so like, from my standpoint, I see

764
00:35:15,760 --> 00:35:18,960
Speaker 2: this as a win from oh, man like this, I'm

765
00:35:19,080 --> 00:35:21,280
Speaker 2: this is a house I'm gonna have to show less often.

766
00:35:21,560 --> 00:35:23,600
Speaker 2: It's a it's a house where these renters might end

767
00:35:23,640 --> 00:35:25,600
Speaker 2: up staying here for a pretty long time. And then

768
00:35:25,640 --> 00:35:27,719
Speaker 2: of course it's a win. It's a it's win win, right,

769
00:35:27,719 --> 00:35:29,120
Speaker 2: So it's a win for the landlord, but it's also

770
00:35:29,200 --> 00:35:31,680
Speaker 2: win for you because your ability to kind of maybe

771
00:35:31,719 --> 00:35:33,480
Speaker 2: curate the neighborhood little and be like, man, I want

772
00:35:33,520 --> 00:35:34,880
Speaker 2: to get my people, I want to get my friends

773
00:35:34,880 --> 00:35:37,400
Speaker 2: over here. I want to or you know, hey, I

774
00:35:37,400 --> 00:35:40,520
Speaker 2: know somebody that's really looking for an affordable two to one,

775
00:35:41,360 --> 00:35:43,640
Speaker 2: she can't afford a whole lot, or you know, he's

776
00:35:43,960 --> 00:35:46,279
Speaker 2: kind of been had some hard times over the past

777
00:35:46,360 --> 00:35:48,279
Speaker 2: couple of years, but he's back on his feet now.

778
00:35:48,719 --> 00:35:50,640
Speaker 2: The ability for you to kind of place some of

779
00:35:50,640 --> 00:35:53,160
Speaker 2: those folks there around you, I think that's really cool.

780
00:35:53,320 --> 00:35:56,160
Speaker 2: I yeah. And in that way, I see the ability

781
00:35:56,400 --> 00:35:59,200
Speaker 2: for you to see a situation where temporary neighbors is

782
00:35:59,200 --> 00:36:01,239
Speaker 2: typically seen as maybe like a negative thing, and kind

783
00:36:01,280 --> 00:36:02,440
Speaker 2: of flip it on its head a little bit.

784
00:36:02,480 --> 00:36:05,160
Speaker 1: Yeah. Maybe. And also if let's say you've got somebody

785
00:36:05,160 --> 00:36:07,560
Speaker 1: who comes in, or maybe you beautify your front yard

786
00:36:07,600 --> 00:36:10,000
Speaker 1: and you say, hey, listen, every summer I come out

787
00:36:10,040 --> 00:36:12,600
Speaker 1: here and I plant yard folice flowers in my front yard.

788
00:36:12,920 --> 00:36:14,719
Speaker 1: I'll do yours for one hundred and fifty bucks. I

789
00:36:14,719 --> 00:36:16,759
Speaker 1: don't know, maybe like hey, but it's gonna make it

790
00:36:16,760 --> 00:36:18,720
Speaker 1: look beautiful. It's gonna give you that curve appeal, that pop.

791
00:36:19,000 --> 00:36:20,600
Speaker 1: That could be a way to make a few extra

792
00:36:20,680 --> 00:36:23,200
Speaker 1: bucks while also making sure that the property next door

793
00:36:23,320 --> 00:36:24,799
Speaker 1: looks as good as you want it to. I don't know,

794
00:36:24,920 --> 00:36:25,680
Speaker 1: just like it.

795
00:36:25,760 --> 00:36:28,320
Speaker 2: Yeah, Jie's gonna get over there and start playing some

796
00:36:28,400 --> 00:36:29,800
Speaker 2: bulbs exactly this Christmas.

797
00:36:29,880 --> 00:36:32,279
Speaker 1: Yeah, that's when I plan Christmas Day. I plant my

798
00:36:32,280 --> 00:36:34,400
Speaker 1: tulip pulps, or we've got a couple more questions to

799
00:36:34,400 --> 00:36:38,359
Speaker 1: get to Matt, including one about using inexpensive cell phone

800
00:36:38,440 --> 00:36:41,120
Speaker 1: providers overseas. Is it going to work out?

801
00:36:41,239 --> 00:36:41,359
Speaker 6: Well?

802
00:36:41,400 --> 00:36:52,759
Speaker 1: We'll talk about that and more right after this. All right,

803
00:36:52,760 --> 00:36:53,799
Speaker 1: we are back from the break.

804
00:36:53,840 --> 00:36:57,080
Speaker 2: We've got more topics to discuss, and specifically, we've got

805
00:36:57,080 --> 00:37:00,840
Speaker 2: our Facebook question of the week. I guess technically this

806
00:37:00,880 --> 00:37:03,040
Speaker 2: one may not be a question, but this one came

807
00:37:03,040 --> 00:37:05,719
Speaker 2: from an anonymous poster in the Facebook group. By the way,

808
00:37:05,800 --> 00:37:07,320
Speaker 2: if you are not already over they're just head a

809
00:37:07,360 --> 00:37:10,080
Speaker 2: Facebook search how to money. You'll quickly find the group.

810
00:37:10,120 --> 00:37:12,239
Speaker 2: We've got over ten thousand folks in. They're helping each

811
00:37:12,280 --> 00:37:14,200
Speaker 2: other out. But this one was really interesting and we

812
00:37:14,239 --> 00:37:17,000
Speaker 2: felt like we we definitely needed to talk about it

813
00:37:17,040 --> 00:37:20,000
Speaker 2: on the show. But it goes and I quote, I

814
00:37:20,040 --> 00:37:23,880
Speaker 2: have a craft beer equivalent dilemma. So my partner, married

815
00:37:24,080 --> 00:37:26,840
Speaker 2: twenty three plus years, is starting to go down a

816
00:37:26,840 --> 00:37:29,040
Speaker 2: path towards a hobby that I very much do not

817
00:37:29,120 --> 00:37:32,280
Speaker 2: support for several reasons, and is aware of my feelings

818
00:37:32,320 --> 00:37:35,200
Speaker 2: on the subject. We are in money year seven, a

819
00:37:35,280 --> 00:37:38,879
Speaker 2: few years from retirement. But it's an expensive hobby too,

820
00:37:39,280 --> 00:37:43,480
Speaker 2: thousands of dollars likely per year, and then further down

821
00:37:43,520 --> 00:37:47,160
Speaker 2: in the comments, it was revealed that the hobby is guns,

822
00:37:47,719 --> 00:37:51,439
Speaker 2: shooting guns specifically, which you know, it's not everybody's cup

823
00:37:51,440 --> 00:37:54,000
Speaker 2: of tea here yea, I felt like this is something

824
00:37:54,200 --> 00:37:56,600
Speaker 2: worth tackling here. It is ask how to money.

825
00:37:56,640 --> 00:37:58,200
Speaker 1: It is, much to my shame, my four year old

826
00:37:58,200 --> 00:37:59,640
Speaker 1: Sun's favorite hobby right now fake guns.

827
00:37:59,600 --> 00:37:59,960
Speaker 2: Fakes.

828
00:38:00,120 --> 00:38:03,920
Speaker 1: But he's all about And I don't know where you

829
00:38:03,920 --> 00:38:06,279
Speaker 1: got this from because I don't own a gun, not

830
00:38:06,320 --> 00:38:09,120
Speaker 1: really interested in that, but he's obsessed. I think it

831
00:38:09,160 --> 00:38:13,239
Speaker 1: all started with his kick. He loves Alexander Hamilton the

832
00:38:13,600 --> 00:38:17,680
Speaker 1: musical and hes yeah, exactly, that's where it started. But

833
00:38:18,360 --> 00:38:20,480
Speaker 1: what if you got instead of like so all the

834
00:38:20,520 --> 00:38:23,279
Speaker 1: kid guns are just like machine guns and you know,

835
00:38:23,320 --> 00:38:26,080
Speaker 1: like revolvers like Western style guns and stuff like that.

836
00:38:26,080 --> 00:38:28,600
Speaker 1: What if you got him, do they make kid muskets?

837
00:38:28,680 --> 00:38:32,400
Speaker 1: Because where he has to like bite the bite the

838
00:38:32,440 --> 00:38:35,080
Speaker 1: gunpowder pouch. And that's a good question, like pull the

839
00:38:35,160 --> 00:38:38,480
Speaker 1: rod packet where like civil war reenactments. So we have

840
00:38:38,800 --> 00:38:40,880
Speaker 1: a local Civil War battlefield right by our house, and

841
00:38:40,920 --> 00:38:43,319
Speaker 1: we went and we saw actually them shoot some of

842
00:38:43,320 --> 00:38:46,400
Speaker 1: those old guns, and he was smitten. He was he

843
00:38:46,400 --> 00:38:48,160
Speaker 1: wasn't scared. He was fascinating, and then he like asked

844
00:38:48,160 --> 00:38:51,319
Speaker 1: so many questions the guy afterwards. It was adorable, but okay, Yeah.

845
00:38:51,680 --> 00:38:54,640
Speaker 1: A lot of the responses to this question or to

846
00:38:54,680 --> 00:38:56,760
Speaker 1: this problem that was posed in the Facebook group revolved

847
00:38:56,760 --> 00:38:58,520
Speaker 1: around the fact that a marriage counselor might be the

848
00:38:58,520 --> 00:39:00,279
Speaker 1: way to go. And I think there's some wisdom there,

849
00:39:00,800 --> 00:39:02,719
Speaker 1: and especially since my wife is planning on being a

850
00:39:02,760 --> 00:39:04,680
Speaker 1: marriage counselor, I have to say.

851
00:39:04,520 --> 00:39:06,400
Speaker 2: By law that this is a really good idea. You

852
00:39:06,400 --> 00:39:08,000
Speaker 2: should go see a marriage can may you sign something?

853
00:39:09,480 --> 00:39:11,440
Speaker 2: If you don't mention it exactly, I get in trouble.

854
00:39:11,480 --> 00:39:12,719
Speaker 2: That's when the prenup kicks in.

855
00:39:14,560 --> 00:39:18,239
Speaker 1: But this wouldn't necessarily be my first recommendation. And so

856
00:39:18,400 --> 00:39:20,760
Speaker 1: it sure sounds like this is less about the money

857
00:39:20,880 --> 00:39:22,399
Speaker 1: that's going to be spent on this hobby. You're in money,

858
00:39:22,440 --> 00:39:24,600
Speaker 1: you're seven, you said, and more about maybe the moral

859
00:39:24,600 --> 00:39:27,719
Speaker 1: disagreement of that chosen hobby, although of course buying guns

860
00:39:27,719 --> 00:39:29,960
Speaker 1: and going to the range can get expensive really quick.

861
00:39:30,320 --> 00:39:32,719
Speaker 1: But if moral aversion is the main problem here, right,

862
00:39:32,719 --> 00:39:35,600
Speaker 1: it's a good idea to share your feelings with your partner.

863
00:39:35,880 --> 00:39:38,799
Speaker 1: Maybe they don't understand why you're reticent. You know, they

864
00:39:38,880 --> 00:39:42,200
Speaker 1: probably aren't making the same connection or moral judgment about

865
00:39:42,200 --> 00:39:45,359
Speaker 1: this because people have different takes on going. It can

866
00:39:45,400 --> 00:39:47,920
Speaker 1: be like considered a hobby and for others it's considered

867
00:39:47,960 --> 00:39:52,000
Speaker 1: self defense, and it can just people can have different viewpoints, right,

868
00:39:52,120 --> 00:39:54,560
Speaker 1: So approach that conversation, I would say with kindness and

869
00:39:54,560 --> 00:39:57,600
Speaker 1: with curiosity. Maybe you'll see their pursuit in a new light,

870
00:39:57,960 --> 00:39:59,799
Speaker 1: or maybe they'll see your point of view. Who knows,

871
00:40:00,160 --> 00:40:03,399
Speaker 1: and if not having a neutral third party, it might

872
00:40:03,480 --> 00:40:06,680
Speaker 1: help facilitate a needed discussion. Maybe that is when marriage

873
00:40:06,680 --> 00:40:09,960
Speaker 1: counseling makes sense. I just wouldn't necessarily go there immediately,

874
00:40:10,200 --> 00:40:11,600
Speaker 1: try to work it out together first, that would be

875
00:40:11,680 --> 00:40:12,200
Speaker 1: my suggestion.

876
00:40:12,400 --> 00:40:16,440
Speaker 2: That's true, And so that's kind of the maybe more

877
00:40:16,480 --> 00:40:18,480
Speaker 2: of the underlying issue. But let's also talk about the

878
00:40:18,480 --> 00:40:20,960
Speaker 2: mechanics when it comes to the money as well, because

879
00:40:21,000 --> 00:40:23,279
Speaker 2: it's really important, I think to have some open discussions

880
00:40:23,280 --> 00:40:27,000
Speaker 2: about expensive new endeavors. And we've talked This reminds me

881
00:40:27,040 --> 00:40:29,120
Speaker 2: of our conversation with our wives where we talked about

882
00:40:29,360 --> 00:40:31,560
Speaker 2: we've got different interests and it doesn't mean that you

883
00:40:31,640 --> 00:40:34,480
Speaker 2: have to be necessarily thrilled about how the other person

884
00:40:34,520 --> 00:40:36,760
Speaker 2: is spending the money and you know, in this case,

885
00:40:36,840 --> 00:40:39,520
Speaker 2: she's actually there's an aversion to how they're spending the money.

886
00:40:39,520 --> 00:40:41,720
Speaker 2: But I still think it's important to have a certain

887
00:40:41,760 --> 00:40:45,120
Speaker 2: amount of blow money. That's what we call it, and

888
00:40:45,160 --> 00:40:47,080
Speaker 2: like on our budget it's just Matt money, cap money,

889
00:40:47,080 --> 00:40:49,080
Speaker 2: it's our blow money. But just to make sure that

890
00:40:49,080 --> 00:40:50,920
Speaker 2: each person feels like that they have the ability to

891
00:40:50,920 --> 00:40:53,920
Speaker 2: pursue the things that they're interested in. So, for instance,

892
00:40:53,920 --> 00:40:56,239
Speaker 2: if your partner wants to spend like two hundred dollars

893
00:40:56,280 --> 00:40:58,600
Speaker 2: a month on a gun hobby, I think you should

894
00:40:58,640 --> 00:41:01,480
Speaker 2: have the freedom to spend lavishly on a hobby that

895
00:41:01,520 --> 00:41:04,359
Speaker 2: you enjoy. And if that two hundred dollars a month,

896
00:41:04,400 --> 00:41:07,239
Speaker 2: if if you're in a situation if someone's listening there,

897
00:41:07,239 --> 00:41:09,280
Speaker 2: like but that would make it more difficult to pursue

898
00:41:09,280 --> 00:41:12,839
Speaker 2: other financial goals that we both said are so important. Well,

899
00:41:12,880 --> 00:41:14,880
Speaker 2: then in that case, I think your maybe your partner

900
00:41:15,000 --> 00:41:18,200
Speaker 2: either needs to maybe dial back their enthusiasm a little bit.

901
00:41:18,239 --> 00:41:21,279
Speaker 2: Maybe they can find a more budget friendly hobby or

902
00:41:21,320 --> 00:41:23,719
Speaker 2: maybe to find a way to bring some more money

903
00:41:23,760 --> 00:41:26,440
Speaker 2: into help pay for that hobby. But even that starts

904
00:41:26,440 --> 00:41:28,520
Speaker 2: to kind of feel like like tit for tat a

905
00:41:28,520 --> 00:41:30,240
Speaker 2: little bit, because I think there's a lot of folks

906
00:41:30,360 --> 00:41:32,759
Speaker 2: where they might have the room to allow for some

907
00:41:32,840 --> 00:41:35,360
Speaker 2: of this margin right where they don't necessarily need to

908
00:41:35,400 --> 00:41:38,080
Speaker 2: be like, well, you spend two hundred dollars exactly on this,

909
00:41:38,160 --> 00:41:41,000
Speaker 2: I'm gonna I'm entitled to exactly two hundred dollars as well.

910
00:41:41,000 --> 00:41:43,920
Speaker 2: That feels less generous, and so I think it also

911
00:41:44,160 --> 00:41:46,640
Speaker 2: just takes an honest look at your personal finances to

912
00:41:47,040 --> 00:41:50,080
Speaker 2: realize that, like, actually, we're in a pretty decent spot. Maybe, yeah,

913
00:41:50,120 --> 00:41:51,640
Speaker 2: we do have the margin to be able to spend

914
00:41:51,680 --> 00:41:54,360
Speaker 2: in ways where we're not necessarily accounting for every single

915
00:41:54,400 --> 00:41:57,360
Speaker 2: dollar that's within perhaps that blow money category.

916
00:41:57,480 --> 00:41:59,320
Speaker 1: Yeah. H And at the end of the day, I

917
00:41:59,320 --> 00:42:02,440
Speaker 1: think hobbies are fun and enjoyable and they don't have

918
00:42:02,480 --> 00:42:04,879
Speaker 1: to cost much at all. Matt. My favorite hobbies are

919
00:42:04,920 --> 00:42:07,680
Speaker 1: relatively inexpensive disc golf, hiking, riding, bikes, or some of

920
00:42:07,719 --> 00:42:10,400
Speaker 1: the great cheap ones. Although I thought about recently getting

921
00:42:10,400 --> 00:42:12,719
Speaker 1: a mountain bike and my wife and I talked about

922
00:42:12,719 --> 00:42:15,080
Speaker 1: it to get it with shocks. Oh yeah, I was

923
00:42:15,120 --> 00:42:17,400
Speaker 1: looking at buying I don't think not terribly expensive, but

924
00:42:17,480 --> 00:42:20,000
Speaker 1: like a seven hundred and fifty dollars bike, right, nothing

925
00:42:20,280 --> 00:42:22,799
Speaker 1: too fancy, but we both kept talking about it, and

926
00:42:22,800 --> 00:42:24,920
Speaker 1: I was like, are you gonna have time to get

927
00:42:24,960 --> 00:42:27,600
Speaker 1: out there on the trails like you are kind of hoping?

928
00:42:27,760 --> 00:42:30,239
Speaker 1: And I was, no, Actually, I don't think I have

929
00:42:30,320 --> 00:42:32,799
Speaker 1: the time right now to really make it worthwhile, make

930
00:42:32,840 --> 00:42:35,239
Speaker 1: it make sense to buy this new bike. But in

931
00:42:35,280 --> 00:42:37,520
Speaker 1: front of the show, Cody Sanchez, who came on to

932
00:42:37,520 --> 00:42:40,200
Speaker 1: talk about building businesses back in the day, she had

933
00:42:40,200 --> 00:42:42,520
Speaker 1: this weird anti hobby take on Twitter. Recently. She said

934
00:42:42,560 --> 00:42:45,880
Speaker 1: that people use hobbies to distract them from their life,

935
00:42:46,000 --> 00:42:47,600
Speaker 1: and I thought that was the weirdest thing. It made

936
00:42:47,719 --> 00:42:49,959
Speaker 1: zero sense to me. Love her for what she does,

937
00:42:50,000 --> 00:42:52,359
Speaker 1: but that hot take on Twitter was really really dumb.

938
00:42:52,400 --> 00:42:54,360
Speaker 1: In my opinion, I think hobbies are one of the

939
00:42:54,360 --> 00:42:56,880
Speaker 1: coolest things about life. We should all be like working

940
00:42:56,920 --> 00:42:58,960
Speaker 1: a little bit less, right, even if we enjoy what

941
00:42:59,000 --> 00:43:01,479
Speaker 1: we do, and be carving more time out to enjoy

942
00:43:01,480 --> 00:43:03,600
Speaker 1: those super fun hobbies that we're interested in. Too many

943
00:43:03,640 --> 00:43:06,319
Speaker 1: Americans actually have too few hobbies. That is I think,

944
00:43:06,320 --> 00:43:09,600
Speaker 1: in large part what makes retirement so boring and so

945
00:43:09,760 --> 00:43:11,560
Speaker 1: difficult for so many people say they don't have enough

946
00:43:11,600 --> 00:43:14,440
Speaker 1: interest when they hit retirement age, and so they're like,

947
00:43:14,600 --> 00:43:16,480
Speaker 1: what do I do now. I've been used to working

948
00:43:16,800 --> 00:43:18,840
Speaker 1: fifty hours a week. Now I don't know what to

949
00:43:18,880 --> 00:43:21,560
Speaker 1: do with myself. Hobbies are really one of the main

950
00:43:21,560 --> 00:43:22,279
Speaker 1: answers I think.

951
00:43:22,280 --> 00:43:23,600
Speaker 2: I think there's a lot of folks who have too

952
00:43:23,680 --> 00:43:26,560
Speaker 2: few real hobbies, because that's the problem. I think there's

953
00:43:26,600 --> 00:43:28,600
Speaker 2: a lot of folks that are getting sucked into the

954
00:43:29,600 --> 00:43:33,720
Speaker 2: work and success track, and the folks who do have hobbies,

955
00:43:33,760 --> 00:43:34,880
Speaker 2: a lot of times it's just sit in front of

956
00:43:34,880 --> 00:43:37,560
Speaker 2: the TV. It's when it turns into like a default

957
00:43:37,680 --> 00:43:40,360
Speaker 2: behavior that requires a lot of your time and that

958
00:43:40,360 --> 00:43:42,080
Speaker 2: you don't necessarily get a lot of enjoyment out of.

959
00:43:42,120 --> 00:43:43,800
Speaker 2: I think those are the kind of situations that that

960
00:43:43,920 --> 00:43:46,319
Speaker 2: kind of I guess rubbed me the wrong way. Joel.

961
00:43:46,360 --> 00:43:49,280
Speaker 2: We got one other quick one here, Jamie. She posted

962
00:43:49,320 --> 00:43:52,200
Speaker 2: in Facebook this week and said, I'm considering switching to

963
00:43:52,239 --> 00:43:54,839
Speaker 2: mint Mobile, but I haven't heard much conversation about how

964
00:43:54,880 --> 00:43:58,280
Speaker 2: to address international travel. Is there an option to activate

965
00:43:58,360 --> 00:44:00,880
Speaker 2: the plan when traveling. I don't frequently go out of

966
00:44:00,880 --> 00:44:03,160
Speaker 2: the country, but with Verizon it's so easy, and other

967
00:44:03,200 --> 00:44:07,160
Speaker 2: family members on my plan travel internationally monthly. Oh Wow, Yeah,

968
00:44:07,200 --> 00:44:10,759
Speaker 2: what do you want to share our experience with Mint specifically?

969
00:44:10,840 --> 00:44:13,920
Speaker 1: Yeah, I'm a little jelly that her her family members

970
00:44:13,920 --> 00:44:16,680
Speaker 1: are traveling internationally monthly. That's amazing, that's.

971
00:44:16,800 --> 00:44:20,000
Speaker 2: She's like, But I'm not. Yeah, yeah, So what should

972
00:44:20,000 --> 00:44:22,200
Speaker 2: you do? Well, yeah, we've been did you say first

973
00:44:22,320 --> 00:44:24,239
Speaker 2: of all you should be taken me? I don't know,

974
00:44:24,239 --> 00:44:25,080
Speaker 2: we don't know what the situation.

975
00:44:25,120 --> 00:44:27,120
Speaker 1: We'll give our we'll give our unbiased opinion here because

976
00:44:27,160 --> 00:44:28,920
Speaker 1: like we've been with Mint Mobile for a lot of

977
00:44:29,000 --> 00:44:30,960
Speaker 1: years now, but we're not going to cover up for

978
00:44:31,239 --> 00:44:33,399
Speaker 1: how awful they are on the international front. Like their

979
00:44:33,400 --> 00:44:35,680
Speaker 1: domestic service is great and the price is perfect, right,

980
00:44:35,680 --> 00:44:38,719
Speaker 1: fifteen bucks a month if when you pay for a

981
00:44:38,800 --> 00:44:41,560
Speaker 1: year worth of service upfront, it doesn't really get much

982
00:44:41,560 --> 00:44:45,920
Speaker 1: better than that. We're fans, but there is certainly massive

983
00:44:45,920 --> 00:44:48,080
Speaker 1: flaw in the Mint system that we wish state upgrade,

984
00:44:48,120 --> 00:44:51,439
Speaker 1: and that is the international service royally sucks with Mint

985
00:44:51,560 --> 00:44:53,560
Speaker 1: and we just experienced that in Scotland.

986
00:44:53,640 --> 00:44:53,879
Speaker 2: Matt.

987
00:44:54,640 --> 00:44:58,040
Speaker 1: You can theoretically you can spend money to get international coverage.

988
00:44:58,080 --> 00:45:00,160
Speaker 1: I did. I paid I don't know, ten bucks, fifteen

989
00:45:00,160 --> 00:45:03,560
Speaker 1: bucks or something whatever for some international coverage with Mint

990
00:45:04,040 --> 00:45:07,919
Speaker 1: and it felt like it didn't work basically at all,

991
00:45:08,000 --> 00:45:10,000
Speaker 1: even though I paid the money for it. So if

992
00:45:10,000 --> 00:45:13,440
Speaker 1: you travel overseas infrequently, I'm talking like once a year,

993
00:45:13,560 --> 00:45:16,080
Speaker 1: once every other year, we think that going with Mint

994
00:45:16,120 --> 00:45:19,080
Speaker 1: still probably makes sense. You can opt to get a

995
00:45:19,080 --> 00:45:21,480
Speaker 1: local simcard on the rare occasion that you do travel.

996
00:45:21,760 --> 00:45:24,560
Speaker 1: That's pretty easy thing, and a pretty inexpensive thing as well.

997
00:45:24,680 --> 00:45:27,400
Speaker 1: It's not very hard, but if you're traveling more frequently

998
00:45:27,440 --> 00:45:30,000
Speaker 1: than that, it's probably worth looking. We wrote an article

999
00:45:30,000 --> 00:45:32,560
Speaker 1: about this on our website at a slightly more expensive

1000
00:45:32,600 --> 00:45:36,359
Speaker 1: service that includes better international travel, Google Fi probably being

1001
00:45:36,760 --> 00:45:38,600
Speaker 1: the best bet for international traveling.

1002
00:45:38,640 --> 00:45:42,320
Speaker 2: Yeah, so the problem isn't the coverage sucks. It's that literally,

1003
00:45:42,760 --> 00:45:45,160
Speaker 2: so the way that Mint bills you, it's twenty cents

1004
00:45:45,200 --> 00:45:47,640
Speaker 2: per megabyte. I was thinking about it earlier, and I

1005
00:45:47,680 --> 00:45:49,879
Speaker 2: think part of the problem is that we don't really

1006
00:45:49,880 --> 00:45:52,040
Speaker 2: have a conception of what that gives you, right, And

1007
00:45:52,080 --> 00:45:53,920
Speaker 2: so we did the same thing, you know, we I

1008
00:45:53,960 --> 00:45:56,120
Speaker 2: think all four of us loaded like twenty I mean,

1009
00:45:56,200 --> 00:45:57,799
Speaker 2: Kate and now we loaded like twenty or twenty five

1010
00:45:57,800 --> 00:46:01,080
Speaker 2: bucks on for the international thing. But it's twenty cents

1011
00:46:01,120 --> 00:46:04,000
Speaker 2: per megabyte, right, So let's do the math here. That

1012
00:46:04,120 --> 00:46:08,280
Speaker 2: means it's two dollars for ten megabytes, and obviously twenty

1013
00:46:08,360 --> 00:46:11,880
Speaker 2: dollars for one hundred megabytes. What can you do with

1014
00:46:11,920 --> 00:46:15,880
Speaker 2: one hundred megabytes? That's about the size of a podcast.

1015
00:46:16,520 --> 00:46:19,160
Speaker 2: Like literally I upload the files for us, they tend

1016
00:46:19,239 --> 00:46:21,399
Speaker 2: to be around one hundred megabytes. And so the problem is,

1017
00:46:21,560 --> 00:46:23,680
Speaker 2: you see twenty cents per megabyte. Oh, okay, this seems

1018
00:46:23,719 --> 00:46:25,200
Speaker 2: like I should be able to get a decent amount,

1019
00:46:25,320 --> 00:46:27,440
Speaker 2: but when it actually, if you're not on Wi Fi

1020
00:46:27,800 --> 00:46:31,120
Speaker 2: and you're truly using that roaming, it will not take

1021
00:46:31,160 --> 00:46:33,880
Speaker 2: you very long at all to completely blow through the

1022
00:46:33,920 --> 00:46:37,319
Speaker 2: amount of data that you've purchased internationally. And so it's

1023
00:46:37,400 --> 00:46:40,399
Speaker 2: just exorbitantly expensive. And at the time, I don't think

1024
00:46:40,400 --> 00:46:43,520
Speaker 2: we even realized this, but we just quickly used up

1025
00:46:43,560 --> 00:46:45,640
Speaker 2: the data that we that we had prepurchased, and it

1026
00:46:45,640 --> 00:46:47,640
Speaker 2: felt like it wasn't working. I think it worked for

1027
00:46:47,680 --> 00:46:49,680
Speaker 2: a second, but literally it was gone in like a

1028
00:46:49,719 --> 00:46:52,640
Speaker 2: blink of any and we're like, well, we're not going

1029
00:46:52,719 --> 00:46:54,799
Speaker 2: to pay for more. We'll figure it out, and we

1030
00:46:54,840 --> 00:46:56,960
Speaker 2: went and bought a paper map. That's how you do it.

1031
00:46:57,719 --> 00:47:00,160
Speaker 2: But then what it like you mentioned Google Fi, Yeah, yea.

1032
00:47:00,400 --> 00:47:02,360
Speaker 2: The cool thing about them is that you can tovel

1033
00:47:02,440 --> 00:47:05,319
Speaker 2: between their two plans, and so what that means is

1034
00:47:05,320 --> 00:47:08,000
Speaker 2: that you can have their regular less expensive plan most

1035
00:47:08,040 --> 00:47:10,000
Speaker 2: of the time, but then you can bump it up

1036
00:47:10,000 --> 00:47:12,879
Speaker 2: to the more expensive. Uh, it's a more robust plan

1037
00:47:13,280 --> 00:47:14,879
Speaker 2: when you're about to hop on a plane and you're

1038
00:47:14,920 --> 00:47:17,080
Speaker 2: going to head to like something like one hundred and

1039
00:47:17,120 --> 00:47:20,800
Speaker 2: sixty to two hundred different countries where Google five works,

1040
00:47:21,239 --> 00:47:23,040
Speaker 2: and that nicer plan it's one hundred and ten dollars

1041
00:47:23,400 --> 00:47:25,680
Speaker 2: for two lines, and so you're basically looking at fifty

1042
00:47:25,680 --> 00:47:26,760
Speaker 2: five dollars a month there.

1043
00:47:26,920 --> 00:47:27,799
Speaker 1: But the data is.

1044
00:47:27,760 --> 00:47:31,000
Speaker 2: Included on that unlimited plus plan, and so you don't

1045
00:47:31,040 --> 00:47:34,239
Speaker 2: have to worry about, like like I'm talking about here,

1046
00:47:34,239 --> 00:47:36,359
Speaker 2: trying to do the math and figure out, Okay, what

1047
00:47:36,600 --> 00:47:38,279
Speaker 2: is it that I'm able? It might can I eat?

1048
00:47:38,320 --> 00:47:38,960
Speaker 2: Watch them move?

1049
00:47:39,400 --> 00:47:39,640
Speaker 1: Right?

1050
00:47:39,920 --> 00:47:42,600
Speaker 2: Should I even hop on social media? Because pictures are

1051
00:47:42,640 --> 00:47:44,760
Speaker 2: heavier than text, you know, like you don't need to

1052
00:47:44,800 --> 00:47:46,040
Speaker 2: do all this mental math.

1053
00:47:45,880 --> 00:47:47,879
Speaker 1: Which is so nice. It's nice to have to stress

1054
00:47:47,880 --> 00:47:48,800
Speaker 1: about it, right because.

1055
00:47:48,600 --> 00:47:50,400
Speaker 2: When you're traveling to you you've got so many other

1056
00:47:50,480 --> 00:47:52,359
Speaker 2: things on your mind. Anyway, you're trying to figure out

1057
00:47:52,360 --> 00:47:54,960
Speaker 2: how to get to the airbnb, or you're trying to

1058
00:47:55,000 --> 00:47:56,400
Speaker 2: figure out how to get to the hotel. There are

1059
00:47:56,400 --> 00:47:58,440
Speaker 2: other things that you're that are going through your head,

1060
00:47:58,760 --> 00:48:02,200
Speaker 2: not oh, should I be checking my email or can

1061
00:48:02,239 --> 00:48:03,920
Speaker 2: I look something up on the web to figure out

1062
00:48:03,960 --> 00:48:06,040
Speaker 2: if this castle is open.

1063
00:48:05,960 --> 00:48:08,040
Speaker 1: Or whatever it is, or if that restaurant like yeah,

1064
00:48:08,080 --> 00:48:10,319
Speaker 1: if they're if they're still open or not too Because

1065
00:48:10,320 --> 00:48:12,840
Speaker 1: I saw it on Anthony Bourdain ten years ago, I

1066
00:48:12,920 --> 00:48:14,400
Speaker 1: kind of want to hit it up. It's around the corner.

1067
00:48:14,400 --> 00:48:16,080
Speaker 1: But yeah, yeah, I agree.

1068
00:48:16,280 --> 00:48:18,560
Speaker 2: Then mobile great in the States, terrible abroad.

1069
00:48:18,640 --> 00:48:22,600
Speaker 1: Yes, exactly. And so I think Google Google Fi is,

1070
00:48:22,960 --> 00:48:24,759
Speaker 1: like Matt, that's what when we start traveling more, that's

1071
00:48:24,760 --> 00:48:25,960
Speaker 1: what you and I are gonna out for. And the

1072
00:48:26,000 --> 00:48:27,480
Speaker 1: cool thing is you mentioned the price for two lines.

1073
00:48:27,480 --> 00:48:28,640
Speaker 1: I don't know what it is off the top of

1074
00:48:28,680 --> 00:48:31,600
Speaker 1: my head for four, but I will say four lines. Sure,

1075
00:48:31,600 --> 00:48:34,400
Speaker 1: there's deals. Yeah, four lines makes it so much cheaper

1076
00:48:34,440 --> 00:48:36,560
Speaker 1: because so well I know, I know, at least for

1077
00:48:36,600 --> 00:48:39,520
Speaker 1: the regular service two lines of Google Fi, the kind

1078
00:48:39,560 --> 00:48:42,000
Speaker 1: that doesn't work very well overseas, is seventy bucks, but

1079
00:48:42,080 --> 00:48:44,839
Speaker 1: four lines is eighty. So that's how it's amazing, Like Yeah,

1080
00:48:44,880 --> 00:48:46,560
Speaker 1: the four lines doesn't cost much more. So if you

1081
00:48:46,560 --> 00:48:48,960
Speaker 1: can find another couple or something like that to split

1082
00:48:49,000 --> 00:48:51,560
Speaker 1: service with and just kind of twenty dollars a long

1083
00:48:51,600 --> 00:48:53,279
Speaker 1: and then know each other every month, that kind of thing,

1084
00:48:53,400 --> 00:48:56,919
Speaker 1: the Google Fi service becomes ridiculously cheap, almost as close

1085
00:48:57,000 --> 00:48:59,279
Speaker 1: almost in comparison to kind of what Mint charges. So

1086
00:48:59,600 --> 00:49:02,839
Speaker 1: it's it's definitely definitely worth thinking about if you are

1087
00:49:02,920 --> 00:49:05,439
Speaker 1: an international traveler, Google is one of the best.

1088
00:49:05,640 --> 00:49:08,359
Speaker 2: That's right, All right, let's talk about the beer real quick.

1089
00:49:08,400 --> 00:49:12,239
Speaker 2: We enjoyed icelandic Arctic Lagger. This is by einstock Old

1090
00:49:12,320 --> 00:49:14,719
Speaker 2: gurd Joel. What was What were your thoughts about this?

1091
00:49:14,760 --> 00:49:15,760
Speaker 2: It was dry, hot lagger.

1092
00:49:15,840 --> 00:49:19,120
Speaker 1: Yeah, it was light, refreshing, lightly hoppy. It tastes like

1093
00:49:19,200 --> 00:49:22,120
Speaker 1: a glorious European vacation. Matt and I just wish on

1094
00:49:22,160 --> 00:49:25,000
Speaker 1: our last one that we had had self bear service.

1095
00:49:25,520 --> 00:49:27,520
Speaker 2: But yeah, like you're drinking beer straight out of the

1096
00:49:27,680 --> 00:49:28,600
Speaker 2: straight out of the Arctic.

1097
00:49:28,440 --> 00:49:31,160
Speaker 1: And yeah, you know those Iceland's known for its waterfalls.

1098
00:49:31,200 --> 00:49:34,000
Speaker 1: It tastes like a if there's a beer waterfall in Iceland,

1099
00:49:34,040 --> 00:49:34,799
Speaker 1: this is what it would taste like.

1100
00:49:35,400 --> 00:49:37,560
Speaker 2: I felt like it almost had like a lemony kind

1101
00:49:37,600 --> 00:49:42,400
Speaker 2: of zestiness to it, so like maybe a slight acidity,

1102
00:49:42,480 --> 00:49:45,040
Speaker 2: slight tartness that I was not expecting out of a

1103
00:49:45,120 --> 00:49:47,040
Speaker 2: lagger like this. But maybe that was just the the

1104
00:49:47,120 --> 00:49:50,320
Speaker 2: dry hotness of it perhaps, But yeah, really good, really refreshing,

1105
00:49:50,640 --> 00:49:53,200
Speaker 2: very Viking like based on the can right here with

1106
00:49:53,239 --> 00:49:57,640
Speaker 2: the uh, I mean, what do you call the Viking hats?

1107
00:49:57,920 --> 00:49:59,239
Speaker 1: I don't know. I don't know that. I don't know

1108
00:49:59,239 --> 00:49:59,840
Speaker 1: what the name is for.

1109
00:50:00,120 --> 00:50:01,960
Speaker 2: There's got to be an actual term for it. Probably, Yeah,

1110
00:50:02,160 --> 00:50:04,200
Speaker 2: we'll look it up at some point, but that's gonna

1111
00:50:04,200 --> 00:50:06,319
Speaker 2: be it for this episode. You can find our show

1112
00:50:06,320 --> 00:50:08,759
Speaker 2: notes up on the website at howdomoney dot com. There

1113
00:50:08,800 --> 00:50:11,319
Speaker 2: you'll find a link to the mint mobile rite up

1114
00:50:11,360 --> 00:50:13,640
Speaker 2: and why it is such a great plan here in

1115
00:50:13,680 --> 00:50:15,759
Speaker 2: the States. But maybe at some point, yeah, we'll have

1116
00:50:15,880 --> 00:50:17,640
Speaker 2: one up for Google Fi as well. With all the

1117
00:50:17,920 --> 00:50:20,080
Speaker 2: international travel that you are saying that you're gonna be doing,

1118
00:50:20,080 --> 00:50:22,600
Speaker 2: I don't know about me. One of these days, that's

1119
00:50:22,600 --> 00:50:24,359
Speaker 2: gonna be a buddy for this one though. Until next time,

1120
00:50:24,440 --> 00:50:26,560
Speaker 2: best Friends Out, Best Friends Out,