1 00:00:00,080 --> 00:00:02,440 Speaker 1: Welcome to How the Money. I'm Joel and I and Matt. 2 00:00:02,640 --> 00:00:06,320 Speaker 1: Today we're discussing important Cares Act details and why there's 3 00:00:06,320 --> 00:00:28,840 Speaker 1: no toilet paper and stores. Ngel, you mentioned the Cares Act. 4 00:00:28,880 --> 00:00:32,000 Speaker 1: That's actually the formal name of the stimulus bill, so 5 00:00:32,000 --> 00:00:34,800 Speaker 1: we're gonna have some clarifications on that's. We are going 6 00:00:34,880 --> 00:00:37,040 Speaker 1: to talk about some details when it comes to filing 7 00:00:37,080 --> 00:00:39,480 Speaker 1: for unemployment as well as some of the specific programs 8 00:00:39,960 --> 00:00:42,720 Speaker 1: pertaining to small businesses and uhyeah, we're gonna we're gonna 9 00:00:42,720 --> 00:00:45,000 Speaker 1: get to all that in this quick Friday episode, Buddy. Yeah, 10 00:00:45,000 --> 00:00:47,120 Speaker 1: and the definition of small business has been enhanced in 11 00:00:47,159 --> 00:00:49,080 Speaker 1: this time to write a lot of people qualify for 12 00:00:49,120 --> 00:00:52,080 Speaker 1: these programs that otherwise wouldn't subsolutely. Man. But first, there's 13 00:00:52,080 --> 00:00:54,840 Speaker 1: a lot to share. But first the good news, as 14 00:00:54,880 --> 00:00:57,240 Speaker 1: we do every Friday for right now, let's talk about 15 00:00:57,280 --> 00:00:59,440 Speaker 1: good stuff. There's something I read and its stated that 16 00:00:59,480 --> 00:01:02,800 Speaker 1: many finance planners are offering pro bono advice right now. 17 00:01:03,200 --> 00:01:05,679 Speaker 1: I mean, our podcast is pro bono every week, but 18 00:01:06,000 --> 00:01:09,679 Speaker 1: you know, uh, for people that want specific help from 19 00:01:09,800 --> 00:01:12,880 Speaker 1: a certified financial planner, we'll put a link to a 20 00:01:12,880 --> 00:01:15,320 Speaker 1: place where you can go find a certified financial planner 21 00:01:15,319 --> 00:01:18,479 Speaker 1: who's willing to give you advice right now for free. So, 22 00:01:18,600 --> 00:01:22,440 Speaker 1: certified financial planners are the highest designation in the financial 23 00:01:22,440 --> 00:01:24,840 Speaker 1: planning space. They're the only sort of financial planner we 24 00:01:24,840 --> 00:01:26,280 Speaker 1: would recommend you go to. And if you can get 25 00:01:26,280 --> 00:01:28,839 Speaker 1: free advice right now from some of these generous folks, 26 00:01:29,040 --> 00:01:31,080 Speaker 1: that's really cool. Yeah, so good man, it's such a 27 00:01:31,120 --> 00:01:33,920 Speaker 1: generous thing to do in these these difficult times. Some 28 00:01:33,959 --> 00:01:36,039 Speaker 1: other good news, man, is that folks out there, they 29 00:01:36,120 --> 00:01:38,440 Speaker 1: might still be panicking when you see some empty shelves 30 00:01:38,440 --> 00:01:42,119 Speaker 1: at the grocery store, specifically the toilet paper, but rest 31 00:01:42,120 --> 00:01:45,720 Speaker 1: assured that supply chains are still working. Great. It's natural 32 00:01:45,840 --> 00:01:48,320 Speaker 1: that we might want to overstock on stuff expecting that 33 00:01:48,360 --> 00:01:51,160 Speaker 1: there might be a shortage. But the empty shells are 34 00:01:51,200 --> 00:01:54,480 Speaker 1: there due to folks that are frontloading their groceries. And 35 00:01:54,480 --> 00:01:56,240 Speaker 1: so we would advise for folks just to kind of 36 00:01:56,280 --> 00:01:59,600 Speaker 1: maybe resume your natural purchasing patterns. You know, the different 37 00:01:59,640 --> 00:02:02,120 Speaker 1: supply chain experts, they're not too weird about this. They're 38 00:02:02,120 --> 00:02:05,240 Speaker 1: expecting to see that demand paper as we resume our 39 00:02:05,280 --> 00:02:08,240 Speaker 1: normal habits. Yeah, you see how much TPS in your closet, 40 00:02:08,240 --> 00:02:10,280 Speaker 1: and you realize you're still only going number two once 41 00:02:10,280 --> 00:02:14,360 Speaker 1: a day. Well, plus there's nowhere else to put all 42 00:02:14,400 --> 00:02:16,680 Speaker 1: of this toilet paper right exactly once you show up 43 00:02:16,720 --> 00:02:18,800 Speaker 1: with two of your mega packs from Costco, It's like, 44 00:02:18,880 --> 00:02:21,840 Speaker 1: where can I actually store this in my home? And 45 00:02:21,919 --> 00:02:25,120 Speaker 1: retailers are doing a good job now, Matt, of regulating 46 00:02:25,160 --> 00:02:27,720 Speaker 1: how much we're able to buy certain things. I was 47 00:02:27,840 --> 00:02:30,160 Speaker 1: in a grocery store the other day, ill advised, I know, 48 00:02:30,600 --> 00:02:32,480 Speaker 1: but about one carton of eggs because that's all that's 49 00:02:32,480 --> 00:02:34,440 Speaker 1: allowed right now at that grocery store. And that's great 50 00:02:34,480 --> 00:02:37,919 Speaker 1: because some people were buying ten, twelve, fifteen eggs for 51 00:02:37,960 --> 00:02:39,799 Speaker 1: the rest of the year. Yeah, and created a run 52 00:02:39,919 --> 00:02:43,840 Speaker 1: on specific items. But there's not necessarily a supply chain problem. 53 00:02:43,960 --> 00:02:46,919 Speaker 1: It's really a US freaking out and buying too much problem. Man. 54 00:02:47,080 --> 00:02:49,320 Speaker 1: Something else we're starting to see in grocery stores as 55 00:02:49,360 --> 00:02:54,040 Speaker 1: well are employees looking to get hazard pay from their employers, right, 56 00:02:54,480 --> 00:02:56,760 Speaker 1: And man, I think that's totally just and totally fair 57 00:02:56,800 --> 00:02:59,680 Speaker 1: that they're asking for this because those folks are out 58 00:02:59,680 --> 00:03:02,440 Speaker 1: there being exposed like they're at a much higher risk, 59 00:03:02,680 --> 00:03:04,320 Speaker 1: and you know, I hope that's something that some of 60 00:03:04,360 --> 00:03:07,000 Speaker 1: these different grocery stores in particular that they pay attention 61 00:03:07,040 --> 00:03:09,600 Speaker 1: to because you know, what better way to support their 62 00:03:09,600 --> 00:03:12,560 Speaker 1: employees than taking care of them financially in this tricky time, 63 00:03:12,840 --> 00:03:15,480 Speaker 1: especially as their stock prices are soaring. You know they're 64 00:03:15,520 --> 00:03:18,320 Speaker 1: serious the increased benefits, they should pass those on to 65 00:03:18,400 --> 00:03:20,840 Speaker 1: their employees. I completely agree, all right. I also love 66 00:03:20,880 --> 00:03:25,239 Speaker 1: seeing matt breweries and distilleries helping out by making hand sanitizer. 67 00:03:25,560 --> 00:03:28,399 Speaker 1: There's a local brewery that just posted that they're giving 68 00:03:28,400 --> 00:03:30,800 Speaker 1: out hand sanitizer for free, you know, one per person 69 00:03:31,040 --> 00:03:33,400 Speaker 1: while supplies last, which is great. They basically started making 70 00:03:33,440 --> 00:03:36,880 Speaker 1: hand sanitizer to in. The parent company behind Absolute Vodka 71 00:03:36,960 --> 00:03:39,480 Speaker 1: rolled out their first batch of hand sanitizer from their 72 00:03:39,480 --> 00:03:43,160 Speaker 1: production facilities in Arkansas. They should be making fifty seven 73 00:03:43,600 --> 00:03:45,800 Speaker 1: gallons a week of hand sanitizer, which is super cool. 74 00:03:46,080 --> 00:03:48,880 Speaker 1: And Hydro Bush is making fifty lids of ready to 75 00:03:48,960 --> 00:03:51,960 Speaker 1: use disinfect and alcohol and Smyrnoff said they donate two 76 00:03:52,040 --> 00:03:55,080 Speaker 1: million leaders of alcohol. I don't really drink Budwiser, but 77 00:03:55,320 --> 00:03:56,760 Speaker 1: you know what, I can give props where they're do 78 00:03:56,800 --> 00:03:59,040 Speaker 1: and you don't drink you know, vodka by the leader, 79 00:03:59,160 --> 00:04:03,440 Speaker 1: but uh that's his college buddy. One of the things 80 00:04:03,440 --> 00:04:06,080 Speaker 1: that one of the executives with absolute actually said is 81 00:04:06,080 --> 00:04:08,520 Speaker 1: like the one of the trickiest parts is them denaturing 82 00:04:08,600 --> 00:04:12,120 Speaker 1: the alcohol so that people don't drink it, which is 83 00:04:12,200 --> 00:04:14,400 Speaker 1: I mean, it's the opposite of what they're used to doing. 84 00:04:14,560 --> 00:04:17,040 Speaker 1: They wanted to be used for for sanitation and cleaning purposes. 85 00:04:17,120 --> 00:04:19,080 Speaker 1: So I think that's amazing that some of these different 86 00:04:19,080 --> 00:04:21,560 Speaker 1: providers of adult beverages are stepping up in a very 87 00:04:21,560 --> 00:04:24,000 Speaker 1: big way. Yeah, for sure. And on an even bigger 88 00:04:24,040 --> 00:04:26,480 Speaker 1: positive note, a few of the major insurance companies are 89 00:04:26,480 --> 00:04:29,960 Speaker 1: waiving consumer healthcare costs related to COVID nineteen, So if 90 00:04:29,960 --> 00:04:32,560 Speaker 1: you're insured by Etna, Signa or Humana, you won't have 91 00:04:32,600 --> 00:04:36,320 Speaker 1: to meet your deductible before they take over bills associated 92 00:04:36,320 --> 00:04:39,400 Speaker 1: with your COVID treatment. So yeah, there are some specifics 93 00:04:39,480 --> 00:04:41,400 Speaker 1: in that too, but it's really cool to see the 94 00:04:41,400 --> 00:04:43,760 Speaker 1: big insurance companies actually stepping up and playing a role 95 00:04:43,760 --> 00:04:47,120 Speaker 1: in helping relieve people's money anxieties in a time where, 96 00:04:47,240 --> 00:04:48,680 Speaker 1: you know what, they've got a lot more to be 97 00:04:48,720 --> 00:04:50,680 Speaker 1: concerned about with their health, and certainly there's gonna be 98 00:04:50,680 --> 00:04:53,080 Speaker 1: different caveats per company as to what they're going to 99 00:04:53,160 --> 00:04:57,240 Speaker 1: consider as an eligible service right that's associated with COVID nineteen. 100 00:04:57,279 --> 00:04:59,120 Speaker 1: So make sure that you do check with your provider. 101 00:04:59,240 --> 00:05:00,919 Speaker 1: And you know what, there might even be other providers 102 00:05:01,600 --> 00:05:03,960 Speaker 1: very soon who jump on that bandwagon, and so make 103 00:05:04,000 --> 00:05:05,960 Speaker 1: sure you keep an eye out for that. Joel, let's 104 00:05:05,960 --> 00:05:08,360 Speaker 1: talk about the stimulus bill, right. This is the Care 105 00:05:08,640 --> 00:05:11,520 Speaker 1: the Cares Act, that's the you know, the official name. 106 00:05:11,880 --> 00:05:13,800 Speaker 1: Does it make you think of care bears? It always 107 00:05:13,800 --> 00:05:16,440 Speaker 1: makes maink of care bears, that does it. So that 108 00:05:16,520 --> 00:05:19,119 Speaker 1: became law a week ago today, and it is roughly 109 00:05:19,279 --> 00:05:22,200 Speaker 1: eight hundred and eighty pages long. So there is a 110 00:05:22,240 --> 00:05:25,880 Speaker 1: lot of stuff packed into it, including monetarily for hospitals, airlines, 111 00:05:25,920 --> 00:05:30,560 Speaker 1: small businesses, and US individual Americans. And so we quickly 112 00:05:30,560 --> 00:05:33,280 Speaker 1: went over some of the different key provisions that were 113 00:05:33,320 --> 00:05:35,440 Speaker 1: in the bill last week, and so now we want 114 00:05:35,480 --> 00:05:36,920 Speaker 1: to make sure that we take some time to drill 115 00:05:36,960 --> 00:05:39,560 Speaker 1: down into some of the specifics this week. Yeah, we 116 00:05:39,560 --> 00:05:41,880 Speaker 1: already talked about the stimulus checks that people are getting, 117 00:05:41,920 --> 00:05:45,080 Speaker 1: and there are details there. But for most Americans, you know, 118 00:05:45,080 --> 00:05:48,880 Speaker 1: a check per individual is coming your way in five 119 00:05:49,240 --> 00:05:51,200 Speaker 1: bucks per kid. But lots of the questions that are 120 00:05:51,200 --> 00:05:54,200 Speaker 1: floating around are about filing for unemployment. Man, I feel 121 00:05:54,240 --> 00:05:56,400 Speaker 1: like that's where most of the questions reside right now, 122 00:05:56,560 --> 00:05:58,359 Speaker 1: at least from our listeners and what I've been seeing, 123 00:05:58,600 --> 00:06:00,600 Speaker 1: And so it's important to note that these benefits have 124 00:06:00,680 --> 00:06:04,279 Speaker 1: been significantly expanded to self employed, furload and gig workers, 125 00:06:04,480 --> 00:06:06,840 Speaker 1: like we mentioned last weekend. Even people who have had 126 00:06:06,880 --> 00:06:09,320 Speaker 1: to self quarantine or aid a family member who was sick. 127 00:06:09,880 --> 00:06:12,360 Speaker 1: They now qualify when they historically wouldn't be able to 128 00:06:12,440 --> 00:06:16,320 Speaker 1: qualify for unemployment benefits. And the benefits you will receive 129 00:06:16,400 --> 00:06:20,200 Speaker 1: depend on how generous your state is with unemployment compensation, 130 00:06:20,680 --> 00:06:24,320 Speaker 1: although the recently past stimulus bill pads those state payments 131 00:06:24,520 --> 00:06:27,040 Speaker 1: with an extra six hundred bucks a week for up 132 00:06:27,080 --> 00:06:31,040 Speaker 1: to four months that flows through your state's unemployment office. Yeah. Man, 133 00:06:31,320 --> 00:06:33,360 Speaker 1: that is super important as well, considering that there are 134 00:06:33,480 --> 00:06:36,599 Speaker 1: estimates that almost a third of Americans might need to 135 00:06:36,600 --> 00:06:39,720 Speaker 1: take advantage of the benefits. It's important to note that 136 00:06:39,720 --> 00:06:42,560 Speaker 1: the details are still being worked out um and each 137 00:06:42,600 --> 00:06:45,840 Speaker 1: date has different eligibility requirements and a lot of different 138 00:06:45,920 --> 00:06:49,599 Speaker 1: unemployment offices. They haven't been told the guidelines from the U. 139 00:06:49,680 --> 00:06:52,120 Speaker 1: S Department of Labor yet, so if you're looking to 140 00:06:52,240 --> 00:06:55,400 Speaker 1: your State's website to file, and you don't see anything 141 00:06:55,440 --> 00:06:59,359 Speaker 1: about gig workers or furload workers being eligible for unemployment assistance. Well, 142 00:06:59,360 --> 00:07:01,640 Speaker 1: that's because they have and had a chance to receive 143 00:07:01,720 --> 00:07:04,960 Speaker 1: the information from on high in Washington yet. But hopefully 144 00:07:04,960 --> 00:07:08,040 Speaker 1: we'll see implementation as soon as today or early next week. 145 00:07:08,279 --> 00:07:10,320 Speaker 1: And so yeah, I guess our best guidance for a 146 00:07:10,400 --> 00:07:13,080 Speaker 1: lot of the stuff is that implementation is taking time. 147 00:07:13,280 --> 00:07:16,200 Speaker 1: Be patient and be persistent. Yeah, the CARES Act is 148 00:07:16,360 --> 00:07:20,080 Speaker 1: doing really good work and making unemployment benefits incredibly accessible 149 00:07:20,080 --> 00:07:23,040 Speaker 1: to workers in need. Now there's even relief for people 150 00:07:23,080 --> 00:07:26,000 Speaker 1: who are still working but have had pay reduced or 151 00:07:26,080 --> 00:07:28,480 Speaker 1: have had their hours cut back. So there are just 152 00:07:28,520 --> 00:07:30,600 Speaker 1: a lot of different changes that are constantly, you know, 153 00:07:30,640 --> 00:07:34,240 Speaker 1: coming down the pipeline. If you're in doubt apply for unemployment, 154 00:07:34,520 --> 00:07:36,040 Speaker 1: you know, it kind of feels like the Wild West. 155 00:07:36,160 --> 00:07:38,760 Speaker 1: The law has been passed. It's just like you said, 156 00:07:38,760 --> 00:07:42,080 Speaker 1: the implementation is taking some time. Um, and even if 157 00:07:42,120 --> 00:07:44,960 Speaker 1: it's been implemented, like a website might not be up right, 158 00:07:45,000 --> 00:07:47,520 Speaker 1: like you might be getting rejected because like the servers 159 00:07:47,560 --> 00:07:51,000 Speaker 1: getting overloaded, it doesn't necessarily mean that you don't qualify. So, 160 00:07:51,080 --> 00:07:53,040 Speaker 1: like you said, be persistent, and you know, we'll have 161 00:07:53,080 --> 00:07:55,280 Speaker 1: a link to the Department of Labor site to help 162 00:07:55,280 --> 00:07:57,680 Speaker 1: you find your state's office, and we'll have that in 163 00:07:57,760 --> 00:07:59,800 Speaker 1: our show notes. Yeah, man, And let's quickly discuss how 164 00:07:59,800 --> 00:08:02,040 Speaker 1: big businesses are being impacted by the CARES Act two, 165 00:08:02,120 --> 00:08:03,960 Speaker 1: which was pasted a week ago, which, by the way, 166 00:08:04,120 --> 00:08:06,720 Speaker 1: let's tell folks what CARES stands for, because of course 167 00:08:06,920 --> 00:08:08,440 Speaker 1: it's got to have like a cute little, you know, 168 00:08:08,440 --> 00:08:13,000 Speaker 1: acronym all these laws to right, So Coronavirus, Aid Relief 169 00:08:13,400 --> 00:08:17,360 Speaker 1: and Economic Security CARES perfectly named. If nothing else, our 170 00:08:17,400 --> 00:08:21,400 Speaker 1: politicians just have really astute naming naming tendencies. I would 171 00:08:21,400 --> 00:08:23,720 Speaker 1: have liked to have been on that committee. You know 172 00:08:23,720 --> 00:08:25,160 Speaker 1: what I think I can I'll see what I can 173 00:08:25,200 --> 00:08:27,720 Speaker 1: do about that. So, because of that to trillion in 174 00:08:27,760 --> 00:08:31,560 Speaker 1: stimulus money, billion of that has been set aside for 175 00:08:31,640 --> 00:08:34,800 Speaker 1: small businesses in particular. And there are two main avenues 176 00:08:34,840 --> 00:08:36,880 Speaker 1: that businesses have to get money from the federal government. 177 00:08:36,920 --> 00:08:39,840 Speaker 1: And Matt, let's get into the first, Economic injury disaster 178 00:08:39,920 --> 00:08:43,080 Speaker 1: loans or idels and you can get those through s 179 00:08:43,120 --> 00:08:46,640 Speaker 1: b A dot Gov the Small Business Administration. These loans 180 00:08:46,640 --> 00:08:50,000 Speaker 1: are always their post disaster for people who've been affected, 181 00:08:50,280 --> 00:08:52,800 Speaker 1: and typically that's someone who suffered through a tornado or 182 00:08:52,800 --> 00:08:57,400 Speaker 1: a hurricane or flood. Limited geographic location typically exactly, but 183 00:08:57,440 --> 00:09:00,000 Speaker 1: because we're in this pandemic, all of the United States 184 00:09:00,080 --> 00:09:03,320 Speaker 1: is basically a disaster area, and all affected small businesses 185 00:09:03,320 --> 00:09:06,200 Speaker 1: have access to these funds, ten thousand of which is 186 00:09:06,240 --> 00:09:09,960 Speaker 1: forgivable if spent on paid leave, maintaining payroll, and increased 187 00:09:09,960 --> 00:09:13,120 Speaker 1: cost due to supply chain, also mortgage or least payments, 188 00:09:13,360 --> 00:09:16,760 Speaker 1: and repaying obligations that cannot be met due to revenue loss. 189 00:09:16,800 --> 00:09:20,160 Speaker 1: So the inner workings of the ideals are a little complicated, 190 00:09:20,280 --> 00:09:22,160 Speaker 1: but we'll post a link to an article that thoroughly 191 00:09:22,200 --> 00:09:24,640 Speaker 1: explains in our show notes and links to where you 192 00:09:24,720 --> 00:09:28,320 Speaker 1: can apply on the Small Business Administration's website ual. So 193 00:09:28,360 --> 00:09:30,800 Speaker 1: that's one avenue that small businesses can go down. The 194 00:09:30,840 --> 00:09:34,600 Speaker 1: e i d L Economic Injury Disaster Loan another avenue. 195 00:09:34,600 --> 00:09:38,000 Speaker 1: Another option for businesses is the Paycheck Protection Program, which 196 00:09:38,040 --> 00:09:40,840 Speaker 1: is the p p P. This is the other resource 197 00:09:40,960 --> 00:09:43,240 Speaker 1: that you need to know about as a small business. 198 00:09:43,320 --> 00:09:46,440 Speaker 1: Nonprofits and small businesses as well as self employed, freelance 199 00:09:46,480 --> 00:09:49,559 Speaker 1: and gig workers, they are all eligible for p p P. 200 00:09:50,360 --> 00:09:53,080 Speaker 1: Loan forgiveness under this program is also really generous for 201 00:09:53,120 --> 00:09:57,000 Speaker 1: employers that use the money on payroll costs, rents, utilities, 202 00:09:57,040 --> 00:10:00,000 Speaker 1: and healthcare costs. And this is a really generous program 203 00:10:00,000 --> 00:10:02,240 Speaker 1: for struggling small businesses, and so we're glad to see 204 00:10:02,280 --> 00:10:04,720 Speaker 1: that was part of the Cares Act. You can apply 205 00:10:04,840 --> 00:10:08,040 Speaker 1: with eight different lenders that are going to be participating. 206 00:10:08,559 --> 00:10:12,160 Speaker 1: Loans are being made available starting today Friday, right now, 207 00:10:12,520 --> 00:10:15,320 Speaker 1: but make sure to dig into the details because they 208 00:10:15,360 --> 00:10:18,640 Speaker 1: affect your eligibility for forgiveness. Again, you can check out 209 00:10:18,679 --> 00:10:21,160 Speaker 1: our show notes for the gritty specifics. What's important to 210 00:10:21,400 --> 00:10:23,360 Speaker 1: note here is that this is an area where the 211 00:10:23,559 --> 00:10:27,079 Speaker 1: federal government has basically delegated these responsibilities to the small 212 00:10:27,120 --> 00:10:29,720 Speaker 1: banks that are local in your community. So you know, 213 00:10:29,720 --> 00:10:31,000 Speaker 1: you can look to a local bank, you can look 214 00:10:31,040 --> 00:10:33,280 Speaker 1: to a credit union. There's gonna be different lenders who 215 00:10:33,320 --> 00:10:35,480 Speaker 1: are going to be participating. So if you're lucky, you've 216 00:10:35,480 --> 00:10:38,679 Speaker 1: already got a person maybe already have a business line 217 00:10:38,920 --> 00:10:40,880 Speaker 1: with somebody at one of those banks, that could be 218 00:10:40,920 --> 00:10:43,160 Speaker 1: actually the best case scenario probably for you. Yeah, they 219 00:10:43,160 --> 00:10:45,840 Speaker 1: can get the ball rolling on on some PPP funds 220 00:10:45,920 --> 00:10:50,240 Speaker 1: for your business soon, right and Matt because the limited funding, 221 00:10:50,640 --> 00:10:54,080 Speaker 1: we we really would encourage small business owners to apply now. 222 00:10:54,400 --> 00:10:57,000 Speaker 1: So even if you're not sure that you're definitely gonna 223 00:10:57,040 --> 00:10:59,560 Speaker 1: need to take these loans, well, you can apply even 224 00:10:59,600 --> 00:11:01,839 Speaker 1: if you don't know that you're actually going to need them. 225 00:11:02,120 --> 00:11:04,920 Speaker 1: And from what we know, you can apply for both 226 00:11:05,000 --> 00:11:07,400 Speaker 1: an I I d L one of these Economic Injury 227 00:11:07,440 --> 00:11:10,800 Speaker 1: Disaster loans, and you can also apply for a loan 228 00:11:10,960 --> 00:11:13,520 Speaker 1: under the paycheck Protection Program. But it's important to note 229 00:11:13,520 --> 00:11:15,920 Speaker 1: that that hasn't been clarified, so we're not sure at 230 00:11:15,960 --> 00:11:18,559 Speaker 1: this point whether that's the case. It seems like it 231 00:11:18,640 --> 00:11:21,640 Speaker 1: can be if you're using those funds for different expenses 232 00:11:21,760 --> 00:11:23,880 Speaker 1: that your business is incurring in this time. But it's 233 00:11:23,880 --> 00:11:26,760 Speaker 1: important to reiterate that there are a lot of moving parts. 234 00:11:26,840 --> 00:11:30,320 Speaker 1: The lowest past a week ago. Implementation is happening as 235 00:11:30,360 --> 00:11:32,480 Speaker 1: fast as it can be, but that stuff takes time, 236 00:11:32,559 --> 00:11:35,400 Speaker 1: especially when you're trying to hand out two trillion dollars 237 00:11:35,400 --> 00:11:38,440 Speaker 1: worth of money and get it into the proper hands. Yeah, man, 238 00:11:38,440 --> 00:11:40,800 Speaker 1: this is going to be complicated, but given the limited 239 00:11:40,880 --> 00:11:42,880 Speaker 1: nature of this program, it does make sense to go 240 00:11:42,920 --> 00:11:45,960 Speaker 1: ahead and move forward with it now. And it's also 241 00:11:46,040 --> 00:11:48,360 Speaker 1: important to note as well that the reason we're talking 242 00:11:48,400 --> 00:11:50,800 Speaker 1: about this is not only just for small business owners, 243 00:11:50,800 --> 00:11:54,080 Speaker 1: but for individuals who are employed by these small businesses. 244 00:11:54,120 --> 00:11:58,000 Speaker 1: Hopefully this is something that your employer, maybe your HR manager, 245 00:11:58,400 --> 00:11:59,920 Speaker 1: this is something that they are talking to you a 246 00:12:00,000 --> 00:12:02,440 Speaker 1: out already, hopefully they've started this conversation. But the whole 247 00:12:02,440 --> 00:12:05,120 Speaker 1: reason that this CARES Act exists is in part to 248 00:12:05,160 --> 00:12:07,720 Speaker 1: save jobs. You know. The idea is that your employer 249 00:12:07,760 --> 00:12:10,360 Speaker 1: will be able to continue to pay a wage, maybe 250 00:12:10,360 --> 00:12:13,160 Speaker 1: a reduced wage, but still a wage, and to provide 251 00:12:13,200 --> 00:12:16,640 Speaker 1: some stability for our overall economy. So if if this 252 00:12:16,679 --> 00:12:19,079 Speaker 1: isn't something you've heard your your employer talk about, or 253 00:12:19,080 --> 00:12:20,920 Speaker 1: your HR person hasn't reached out to you, it might 254 00:12:20,920 --> 00:12:23,079 Speaker 1: be worth shooting them an email now, yeah. Or if 255 00:12:23,080 --> 00:12:26,320 Speaker 1: you have been laid off or furloughed and your employer 256 00:12:26,400 --> 00:12:28,719 Speaker 1: hasn't sent you an email talking about bringing you back on. 257 00:12:29,240 --> 00:12:32,320 Speaker 1: Under this program, they have a direct incentive to bring 258 00:12:32,360 --> 00:12:34,560 Speaker 1: you back on and to have you on their payroll 259 00:12:34,760 --> 00:12:37,360 Speaker 1: because the federal government is giving a forgivable loan for 260 00:12:37,400 --> 00:12:40,720 Speaker 1: doing so. So if your small employer doesn't know about this, 261 00:12:40,800 --> 00:12:42,680 Speaker 1: if it's not on their radar, make sure, you let 262 00:12:42,760 --> 00:12:45,199 Speaker 1: them know because it directly impacts you as well. All right, Matt, 263 00:12:45,200 --> 00:12:46,520 Speaker 1: But we need to take a quick break and right 264 00:12:46,559 --> 00:12:48,960 Speaker 1: after that we'll get to some listener questions, things that 265 00:12:49,000 --> 00:12:50,920 Speaker 1: they wanted to know about the CARES acting and it's 266 00:12:50,960 --> 00:13:02,600 Speaker 1: impact on them. All right, So we're back from the break. Man. 267 00:13:02,640 --> 00:13:05,480 Speaker 1: This is week three. That's essentially how I'm looking at it, 268 00:13:05,480 --> 00:13:07,760 Speaker 1: because that means three weeks of our kids at home, 269 00:13:08,160 --> 00:13:11,560 Speaker 1: markings on the calendar, on the jail cell wall, you know, 270 00:13:11,640 --> 00:13:14,160 Speaker 1: like digging in with a knife. Yeah, No, it hasn't 271 00:13:14,320 --> 00:13:15,840 Speaker 1: like it really hasn't been that bad. I feel like 272 00:13:15,840 --> 00:13:19,560 Speaker 1: we've adjusted fairly. Well, it's still again though it's not normal, 273 00:13:20,040 --> 00:13:22,440 Speaker 1: but it's it's has been fun to make changes in 274 00:13:22,480 --> 00:13:24,600 Speaker 1: her life and seeing how we've been able to, uh, 275 00:13:24,640 --> 00:13:26,280 Speaker 1: to adjust to that. One of the things we did 276 00:13:26,320 --> 00:13:29,400 Speaker 1: recently this past week, our oldest daughter, she's only six, 277 00:13:29,480 --> 00:13:31,920 Speaker 1: but we found this online typing program part of what 278 00:13:31,920 --> 00:13:34,400 Speaker 1: we're teaching her, obviously, in addition to what the schools 279 00:13:34,440 --> 00:13:36,280 Speaker 1: sending us. And she's kind of sitting down and taking 280 00:13:36,320 --> 00:13:38,920 Speaker 1: these typing lessons and she's totally hooked. She's she's all 281 00:13:38,960 --> 00:13:41,520 Speaker 1: about it. She loves redoing lessons to try to get faster, 282 00:13:41,679 --> 00:13:44,560 Speaker 1: and she gets more stars that way. She's really enjoying, 283 00:13:44,600 --> 00:13:47,679 Speaker 1: you know, the gamification of typing. But yeah, just a fun, 284 00:13:47,760 --> 00:13:49,440 Speaker 1: little win, just a small way that we've been able 285 00:13:49,480 --> 00:13:52,319 Speaker 1: to maintain our sanity. Yeah, man, I love just all 286 00:13:52,320 --> 00:13:54,360 Speaker 1: the little ways that I feel like we've been able 287 00:13:54,400 --> 00:13:56,640 Speaker 1: to change our lives for the better, even in the 288 00:13:56,679 --> 00:13:58,760 Speaker 1: middle of a lot of a lot of oddity, right, 289 00:13:58,880 --> 00:14:02,000 Speaker 1: a lot of weirdness. Just staying home teaching the kids now, 290 00:14:02,040 --> 00:14:04,240 Speaker 1: which has been odd, but it's also been good. It's 291 00:14:04,280 --> 00:14:05,800 Speaker 1: been good, and it's been fun. And Emily is trying 292 00:14:05,840 --> 00:14:07,800 Speaker 1: to do similar things, like, okay, cool, let's tackle some 293 00:14:07,840 --> 00:14:10,839 Speaker 1: subjects because there's not quite enough work to justify a 294 00:14:10,880 --> 00:14:13,400 Speaker 1: seven hour school day. Let's find let's find some other 295 00:14:13,400 --> 00:14:16,040 Speaker 1: stuff too that we can implement into our routine, some 296 00:14:16,320 --> 00:14:19,200 Speaker 1: related arts, maybe, they'll say. And that's been really fun. Yeah, 297 00:14:19,240 --> 00:14:20,880 Speaker 1: it's it's important. And now we're talking about this the 298 00:14:20,880 --> 00:14:23,960 Speaker 1: other day, and you know, there's a distinction between homeschooling 299 00:14:24,280 --> 00:14:26,680 Speaker 1: and like crisis schooling now and this is maybe something 300 00:14:26,680 --> 00:14:28,640 Speaker 1: that's been going around the internet for a while, but 301 00:14:28,760 --> 00:14:30,640 Speaker 1: this is something that we just recently talked about. But 302 00:14:30,880 --> 00:14:33,000 Speaker 1: a lot of folks are saying that, man, like I 303 00:14:33,000 --> 00:14:35,840 Speaker 1: could never homeschool. This is insane, This is crazy. But 304 00:14:35,840 --> 00:14:39,040 Speaker 1: what's important to point out is that this isn't normal homeschooling, right, Like, 305 00:14:39,040 --> 00:14:41,240 Speaker 1: like that's why they're calling it crisis schooling. Because even 306 00:14:41,280 --> 00:14:43,760 Speaker 1: homeschoolers aren't able to get out, they're not able to 307 00:14:43,760 --> 00:14:45,560 Speaker 1: get their groups together and do some of those group 308 00:14:45,560 --> 00:14:47,920 Speaker 1: classes or those group outings that they're used to. There's 309 00:14:47,960 --> 00:14:50,520 Speaker 1: a lot that has changed, and this isn't normal life. 310 00:14:50,680 --> 00:14:52,520 Speaker 1: So being encouraged if if you don't quite feel like 311 00:14:52,560 --> 00:14:54,400 Speaker 1: you you've got your feet under you, I think that's 312 00:14:54,400 --> 00:14:56,880 Speaker 1: totally fine. This isn't normal life. Just do the best 313 00:14:56,920 --> 00:14:59,240 Speaker 1: you can with the resources that you can find. Yeah, 314 00:14:59,240 --> 00:15:02,440 Speaker 1: and don't judge merits of home schooling based on this alone. Yeah, 315 00:15:02,560 --> 00:15:04,600 Speaker 1: I mean we were going to do it anyway. But 316 00:15:04,600 --> 00:15:06,240 Speaker 1: but that's a good point to make because yeah, I 317 00:15:06,240 --> 00:15:08,240 Speaker 1: think a lot of people might say, well, homeschool, I'm 318 00:15:08,240 --> 00:15:10,120 Speaker 1: definitely not doing it now, but but yeah, it looks 319 00:15:10,160 --> 00:15:13,160 Speaker 1: different than crisis schooling. Right, what's this crisis that we're 320 00:15:13,160 --> 00:15:14,760 Speaker 1: all our kids are gonna go boarding school? You know, 321 00:15:15,840 --> 00:15:18,800 Speaker 1: we're gonna ship them off to the northeast somewhere. All right, Well, 322 00:15:18,840 --> 00:15:20,880 Speaker 1: all right, Matt, let's get into some listener questions, because 323 00:15:20,880 --> 00:15:23,200 Speaker 1: there were some really important ones I think address a 324 00:15:23,280 --> 00:15:25,160 Speaker 1: lot of concerns that a lot of people have, just 325 00:15:25,200 --> 00:15:26,800 Speaker 1: a lot of questions that people have in this time. 326 00:15:27,120 --> 00:15:28,960 Speaker 1: And we've got a couple of voice questions. But first 327 00:15:29,000 --> 00:15:31,600 Speaker 1: a quick one from the Facebook group. Esteban said that 328 00:15:31,640 --> 00:15:34,400 Speaker 1: he's in a great financial situation, he said, in particular 329 00:15:34,440 --> 00:15:37,040 Speaker 1: thanks to listening to the podcast and the help from 330 00:15:37,040 --> 00:15:39,280 Speaker 1: people in the Facebook group. So he wonders should he 331 00:15:39,320 --> 00:15:41,840 Speaker 1: put additional money in a down market towards his h 332 00:15:41,960 --> 00:15:43,880 Speaker 1: s A, his Health Save mus account or his four 333 00:15:43,920 --> 00:15:46,560 Speaker 1: oh one K with a goal to reduce his adjusted 334 00:15:46,600 --> 00:15:49,840 Speaker 1: gross income. And here's our thoughts, Well, guess upon either way, 335 00:15:50,040 --> 00:15:53,040 Speaker 1: you're gonna be reducing your adjusted gross income by the 336 00:15:53,080 --> 00:15:55,240 Speaker 1: same amount, whether you're contributing that money to an h 337 00:15:55,360 --> 00:15:57,160 Speaker 1: s A or to a four oh one K. But 338 00:15:57,640 --> 00:16:00,000 Speaker 1: we really like the h s A because it allows 339 00:16:00,000 --> 00:16:02,760 Speaker 1: you to shelter that money completely from taxes, and we 340 00:16:02,800 --> 00:16:04,880 Speaker 1: talked about that in great detail back in episode one 341 00:16:04,920 --> 00:16:06,800 Speaker 1: oh five. And of course that means if you are 342 00:16:06,840 --> 00:16:09,240 Speaker 1: eligible for an h s A, and that's the case 343 00:16:09,280 --> 00:16:12,280 Speaker 1: if you have a qualifying high deductible health insurance plan. 344 00:16:12,560 --> 00:16:14,320 Speaker 1: And one of the reasons we love in hs SAY 345 00:16:14,360 --> 00:16:15,800 Speaker 1: is that the money that you have in your h 346 00:16:15,960 --> 00:16:19,160 Speaker 1: s A, it's it's more flexible for withdrawals. Although we 347 00:16:19,200 --> 00:16:21,240 Speaker 1: would prefer you to invest that money inside of your 348 00:16:21,360 --> 00:16:24,240 Speaker 1: h s A for you know, the maximum benefit for 349 00:16:24,280 --> 00:16:26,720 Speaker 1: you to realize it's full power to leave that money 350 00:16:26,720 --> 00:16:29,760 Speaker 1: in there. Certainly you can't take money out maybe in three, five, 351 00:16:29,760 --> 00:16:32,080 Speaker 1: two years, even eighty years from now, it doesn't matter 352 00:16:32,160 --> 00:16:35,440 Speaker 1: when you incurred those healthcare costs, but just make sure 353 00:16:35,600 --> 00:16:39,600 Speaker 1: that you've documented those healthcare expenses well, whether that's keeping 354 00:16:39,600 --> 00:16:42,000 Speaker 1: a spreadsheet, you know, maybe you can have a legal 355 00:16:42,000 --> 00:16:44,240 Speaker 1: pad on your desk, but you probably want to take 356 00:16:44,240 --> 00:16:46,640 Speaker 1: to something digital that will stand the test of time. 357 00:16:47,000 --> 00:16:49,360 Speaker 1: Keeping track of the documentation is really important because that's 358 00:16:49,360 --> 00:16:51,760 Speaker 1: how you can justify those withdrawals from your h s 359 00:16:51,760 --> 00:16:54,320 Speaker 1: A next year, ten years from now, or yeah, like 360 00:16:54,360 --> 00:16:56,680 Speaker 1: we said, just decades down the road. And so that 361 00:16:56,720 --> 00:16:59,240 Speaker 1: being said, you can't go wrong with either whether you're 362 00:16:59,240 --> 00:17:02,200 Speaker 1: looking at a four K or in hs A. Yeah, Matt, 363 00:17:02,280 --> 00:17:04,440 Speaker 1: we when we talked about h s A s. They're 364 00:17:04,480 --> 00:17:06,840 Speaker 1: called health savings accounts. We said, you better think about 365 00:17:06,880 --> 00:17:10,040 Speaker 1: it as a health investing account investment, because if you're 366 00:17:10,040 --> 00:17:12,760 Speaker 1: thinking about it in that way, then it's slam dunk, 367 00:17:12,920 --> 00:17:15,359 Speaker 1: just an awesome way to go, because you can't invest 368 00:17:15,400 --> 00:17:17,520 Speaker 1: that money for the long term, pay for those healthcare 369 00:17:17,600 --> 00:17:20,240 Speaker 1: costs out of pocket now, and use those receipts to 370 00:17:20,280 --> 00:17:22,800 Speaker 1: claim that HSA money years down the road after it's 371 00:17:22,840 --> 00:17:25,000 Speaker 1: grown and grown and grown. All right, let's get to 372 00:17:25,000 --> 00:17:28,240 Speaker 1: a question from someone who lives locally in Atlanta person 373 00:17:28,440 --> 00:17:31,600 Speaker 1: about therefore one K contributions due to a recent sad 374 00:17:31,680 --> 00:17:34,720 Speaker 1: change from what their employer offers them. Hey, Matt and Joel, 375 00:17:34,800 --> 00:17:37,240 Speaker 1: this is Bradley from Atlanta and now listen to just 376 00:17:37,320 --> 00:17:40,000 Speaker 1: about every one of your episodes. I've really found your 377 00:17:40,040 --> 00:17:43,560 Speaker 1: weekly Friday episodes on the COVID nineteen pandemic very helpful 378 00:17:44,160 --> 00:17:46,280 Speaker 1: and thank you for bringing so much positivity and hope 379 00:17:46,280 --> 00:17:49,840 Speaker 1: to the situation. My question is regarding my WRATH four 380 00:17:49,880 --> 00:17:53,280 Speaker 1: O one K contributions. My employer is cutting their four 381 00:17:53,280 --> 00:17:56,119 Speaker 1: owne K match along with other things, in order to 382 00:17:56,160 --> 00:18:00,320 Speaker 1: preserve more talent and limit potential layoffs. The company only 383 00:18:00,359 --> 00:18:03,720 Speaker 1: matches of the first six percent of my pay that 384 00:18:03,760 --> 00:18:07,480 Speaker 1: I contribute. Would you recommend I temporarily stop funding my 385 00:18:07,600 --> 00:18:10,600 Speaker 1: WRATH for one k and if so, would you recommend 386 00:18:10,640 --> 00:18:15,119 Speaker 1: I a beef up my emergency fund or be contribute 387 00:18:15,160 --> 00:18:18,600 Speaker 1: to my roth IRA to buy some low cost index 388 00:18:18,680 --> 00:18:22,040 Speaker 1: funds at what some are calling on sale. Thanks and 389 00:18:22,080 --> 00:18:25,639 Speaker 1: looking forward to hearing from you guys. Be safe out there. Hey, Bradley, 390 00:18:25,720 --> 00:18:28,480 Speaker 1: we are glad to hear that these Friday episodes have 391 00:18:28,600 --> 00:18:30,920 Speaker 1: been helpful for you. You know what, We're gonna keep 392 00:18:30,920 --> 00:18:33,160 Speaker 1: making them because we we feel they are so important 393 00:18:33,240 --> 00:18:35,880 Speaker 1: right now, and even beyond that, we're planning to continue 394 00:18:35,920 --> 00:18:39,040 Speaker 1: these Friday episodes and focus on other timely information and 395 00:18:39,280 --> 00:18:42,159 Speaker 1: articles long after this crisis is a thing of the past. 396 00:18:42,280 --> 00:18:43,720 Speaker 1: I was hoping to be able to sleep in on 397 00:18:43,720 --> 00:18:46,600 Speaker 1: Friday's eventually. No, Hey, we're not doing these on Fridays. 398 00:18:46,600 --> 00:18:49,280 Speaker 1: We're doing these the day before, recording on Thursdays, releasing 399 00:18:49,280 --> 00:18:51,919 Speaker 1: on Fridays. And we're not exactly sure what these episodes 400 00:18:51,960 --> 00:18:53,840 Speaker 1: are gonna look like in the future, but we are 401 00:18:54,040 --> 00:18:56,560 Speaker 1: excited to continue to release them. Yeah, and there's so 402 00:18:56,640 --> 00:18:59,399 Speaker 1: much financial news right now, however, we can help and 403 00:18:59,440 --> 00:19:02,600 Speaker 1: distill and distill kind of all the noise to bring 404 00:19:02,640 --> 00:19:04,480 Speaker 1: helpful information to people. That's what we want to do, 405 00:19:04,800 --> 00:19:07,440 Speaker 1: and Matt, I think too, it's important to Bradley's note 406 00:19:07,480 --> 00:19:11,120 Speaker 1: that his employer is cutting his four O one K match. Well, 407 00:19:11,359 --> 00:19:13,520 Speaker 1: I will say that's a small price to pay and 408 00:19:13,640 --> 00:19:15,720 Speaker 1: kind of what's happening in this economy. But I've heard 409 00:19:15,720 --> 00:19:18,040 Speaker 1: of more and more employers making this move to be 410 00:19:18,080 --> 00:19:21,040 Speaker 1: able to keep cash on hand, and hopefully, hopefully this 411 00:19:21,119 --> 00:19:23,000 Speaker 1: is a short term move, right, hopefully we move past this, 412 00:19:23,200 --> 00:19:25,720 Speaker 1: your four oh one K matches reinstated in June or 413 00:19:25,880 --> 00:19:28,200 Speaker 1: or July or something like that. But for the time being, 414 00:19:28,320 --> 00:19:31,199 Speaker 1: this is a relevant question, and I think Matt, what 415 00:19:31,320 --> 00:19:33,640 Speaker 1: we would say is, yeah, for the time being, maybe 416 00:19:33,640 --> 00:19:36,879 Speaker 1: it does make sense to suspend those contributions to your 417 00:19:36,920 --> 00:19:39,920 Speaker 1: four one K, depending on partly you know what company 418 00:19:40,080 --> 00:19:41,879 Speaker 1: your four one case with. If you are with one 419 00:19:41,920 --> 00:19:44,199 Speaker 1: of the low cost providers through your work, maybe just 420 00:19:44,320 --> 00:19:47,359 Speaker 1: keep going. But if you're not, then definitely opening up 421 00:19:47,359 --> 00:19:50,080 Speaker 1: a WROTH with one of the low cost providers like Vanguard, 422 00:19:50,119 --> 00:19:52,840 Speaker 1: Fidelity or in one and continuing to invest in this 423 00:19:52,880 --> 00:19:55,080 Speaker 1: time in and down market. Like you said, Bradley, win 424 00:19:55,160 --> 00:19:57,040 Speaker 1: the markets on sale. That can be a good move 425 00:19:57,080 --> 00:19:59,600 Speaker 1: for you. But the one caveat that we would suggest 426 00:19:59,600 --> 00:20:01,200 Speaker 1: that you can it or is, is to make sure 427 00:20:01,520 --> 00:20:04,280 Speaker 1: that you have enough cash on hand to be able 428 00:20:04,280 --> 00:20:07,200 Speaker 1: to weather the storm if you were to lose your job. Yeah, Bradley, 429 00:20:07,160 --> 00:20:09,240 Speaker 1: you're asking about beefing up your emergency fund. We'd hate 430 00:20:09,240 --> 00:20:11,639 Speaker 1: for you to miss out on continuing to invest during 431 00:20:11,680 --> 00:20:13,560 Speaker 1: this time, you know, like you said when the markets 432 00:20:13,560 --> 00:20:16,040 Speaker 1: on sale, but staying afloat is going to be more 433 00:20:16,040 --> 00:20:19,320 Speaker 1: important than taking advantage of a down market. Just in 434 00:20:19,359 --> 00:20:21,600 Speaker 1: the end, Brattle, you can't avoid risk altogether, but you 435 00:20:21,720 --> 00:20:24,399 Speaker 1: can make sure that you are prioritizing having cash on 436 00:20:24,480 --> 00:20:26,840 Speaker 1: hand to be able to pay for the basic living 437 00:20:26,880 --> 00:20:30,080 Speaker 1: expenses of life for a few months in case of 438 00:20:30,119 --> 00:20:32,840 Speaker 1: an extended downturn or even a job loss. Again, the 439 00:20:32,840 --> 00:20:35,480 Speaker 1: Stimulus Bill, the Cares Act that will be able to 440 00:20:35,480 --> 00:20:37,880 Speaker 1: help you too, But cash on hand is so important 441 00:20:37,920 --> 00:20:40,560 Speaker 1: in these tougher economic times. So maybe you could even 442 00:20:40,560 --> 00:20:43,080 Speaker 1: consider splitting the difference and putting half of that money 443 00:20:43,160 --> 00:20:45,520 Speaker 1: that would have gone into your four own k into 444 00:20:45,680 --> 00:20:48,640 Speaker 1: your own wrath and then the other half can maybe 445 00:20:48,640 --> 00:20:51,840 Speaker 1: go into an online savings account to bolster your savings. 446 00:20:52,080 --> 00:20:54,760 Speaker 1: That is, unless you already have you know, more than 447 00:20:54,840 --> 00:20:57,040 Speaker 1: ample savings. Well if you know, if that's the case, 448 00:20:57,080 --> 00:20:59,640 Speaker 1: then definitely take advantage of the market being on sale. Yeah, 449 00:20:59,640 --> 00:21:01,720 Speaker 1: completely agree, Matt. All right, let's get to another one 450 00:21:01,760 --> 00:21:04,720 Speaker 1: about student loans, because that's another big question that people 451 00:21:04,760 --> 00:21:07,560 Speaker 1: have on their minds right now. Hey, Joelan Matte. This 452 00:21:07,640 --> 00:21:10,040 Speaker 1: is Ian from Eugene, Oregon. Thanks for taking my question. 453 00:21:10,960 --> 00:21:13,320 Speaker 1: As part of the relief bill that was recently passed, 454 00:21:13,359 --> 00:21:17,560 Speaker 1: federal student loan payments have been suspended until September and 455 00:21:17,600 --> 00:21:20,600 Speaker 1: no interest is accruing at that time. My question is 456 00:21:20,600 --> 00:21:23,440 Speaker 1: should I still be paying towards my loans? I am 457 00:21:23,480 --> 00:21:26,879 Speaker 1: a teacher and I'm still receiving paychecks. I'm on the 458 00:21:26,920 --> 00:21:31,000 Speaker 1: PSLF program for my loans and still have eight years 459 00:21:31,080 --> 00:21:34,080 Speaker 1: of payments towards the ten and the balance on my 460 00:21:34,160 --> 00:21:37,679 Speaker 1: loans is about forty dollars. Thanks so much, appreciate what 461 00:21:37,720 --> 00:21:40,480 Speaker 1: you guys do. Hey, Ian, thanks so much for that question. 462 00:21:40,560 --> 00:21:43,720 Speaker 1: And yeah, man, this is great news for folks, especially 463 00:21:43,760 --> 00:21:46,320 Speaker 1: those who have a high monthly payment, to be able 464 00:21:46,359 --> 00:21:47,960 Speaker 1: to keep more of their money in their own pockets 465 00:21:47,960 --> 00:21:50,560 Speaker 1: to deal with whatever comes their way, But to answer 466 00:21:50,560 --> 00:21:53,440 Speaker 1: your question, do not pay on your federal student loans 467 00:21:53,480 --> 00:21:56,159 Speaker 1: for the next six months, in particular because you are 468 00:21:56,200 --> 00:21:59,240 Speaker 1: working towards that PSLF. There's no reason that you shouldn't 469 00:21:59,240 --> 00:22:02,880 Speaker 1: take advantage of this emergency, you know, forbearance that has 470 00:22:02,960 --> 00:22:06,119 Speaker 1: been issued through the CARES Act. The six months of 471 00:22:06,200 --> 00:22:10,520 Speaker 1: suspended payments, they count towards loan forgiveness programs, including Public 472 00:22:10,560 --> 00:22:13,680 Speaker 1: Service Loan Forgiveness, so you have their PSLF, as well 473 00:22:13,680 --> 00:22:17,640 Speaker 1: as income driven repayment forgiveness plans like Pay repay an 474 00:22:17,640 --> 00:22:19,840 Speaker 1: ib R as well. A lot of acronyms. But if 475 00:22:19,840 --> 00:22:21,120 Speaker 1: you've got one of those, you know who you are. 476 00:22:21,240 --> 00:22:23,760 Speaker 1: Love me some acronyms, a lot of them this episode 477 00:22:23,800 --> 00:22:26,160 Speaker 1: mean yeah, And I think Matt the Department of Education 478 00:22:26,160 --> 00:22:28,960 Speaker 1: had it wrong earlier this week when I looked. But again, 479 00:22:29,040 --> 00:22:32,880 Speaker 1: the moving parts, the clarification, it's all a work in progress. 480 00:22:32,920 --> 00:22:36,520 Speaker 1: But from everything that we can tell from what's written 481 00:22:36,560 --> 00:22:39,560 Speaker 1: in the bill, if you're working towards PSLF, these six 482 00:22:39,600 --> 00:22:42,960 Speaker 1: months of payments that you don't have to make still 483 00:22:43,000 --> 00:22:45,960 Speaker 1: count towards the time, still count towards that ten years 484 00:22:46,000 --> 00:22:49,280 Speaker 1: of which it takes to achieve PSLF. So Basically, it's 485 00:22:49,359 --> 00:22:52,479 Speaker 1: it's like it truncates your timetable and you only have 486 00:22:52,640 --> 00:22:54,680 Speaker 1: nine and a half years that you have to actually pay. 487 00:22:54,800 --> 00:22:57,119 Speaker 1: There you go, and so you're gonna pay less overall 488 00:22:57,160 --> 00:22:59,280 Speaker 1: towards your student loans. You'll have more overall debt that 489 00:22:59,320 --> 00:23:01,040 Speaker 1: will be forgiven at the end of the ten years 490 00:23:01,280 --> 00:23:03,359 Speaker 1: thanks to this provision and kind of this six month 491 00:23:03,480 --> 00:23:06,639 Speaker 1: emergency forbearance. Nice man, So gosh, we covered a lot 492 00:23:06,680 --> 00:23:09,199 Speaker 1: of ground. Uh, We'll keep talking about the impact of 493 00:23:09,280 --> 00:23:12,520 Speaker 1: COVID nineteen on your finances each week on these Friday episodes. Joel, 494 00:23:12,520 --> 00:23:14,600 Speaker 1: I'm looking forward to creating more of these episodes every 495 00:23:14,600 --> 00:23:16,439 Speaker 1: single week, and so I think that's gonna be it 496 00:23:16,440 --> 00:23:18,440 Speaker 1: for this episode, buddy. Yeah, And we'll put again those 497 00:23:18,480 --> 00:23:20,280 Speaker 1: links in the show notes for some of the articles 498 00:23:20,320 --> 00:23:23,280 Speaker 1: we found most helpful and explanatory, and also links to 499 00:23:23,600 --> 00:23:26,800 Speaker 1: where to apply for those small business loans and the 500 00:23:26,880 --> 00:23:28,359 Speaker 1: d o L link. I mean, all that stuff will 501 00:23:28,400 --> 00:23:29,880 Speaker 1: be in our show notes at how to money dot com. 502 00:23:29,960 --> 00:23:32,480 Speaker 1: That's right, man, So until next time, best Friends Out, 503 00:23:32,520 --> 00:23:33,360 Speaker 1: Best Friends Out.