1
00:00:00,080 --> 00:00:03,320
Speaker 1: Welcome to How the Money. I'm Joel and I am Matt,

2
00:00:03,360 --> 00:00:25,720
Speaker 1: and today we're answering your listener questions. That's right, buddy,

3
00:00:25,760 --> 00:00:28,960
Speaker 1: this is our listener questions episode and for new listeners

4
00:00:28,960 --> 00:00:31,040
Speaker 1: here who may have discovered us from recently. The way

5
00:00:31,080 --> 00:00:34,160
Speaker 1: it works is every other Monday, we take listener questions,

6
00:00:34,240 --> 00:00:37,360
Speaker 1: we answer five of those, and on the alternating Mondays

7
00:00:37,400 --> 00:00:39,840
Speaker 1: we like to have bring somebody else here on this show.

8
00:00:39,840 --> 00:00:43,440
Speaker 1: We have interviews and so experts who with the Money

9
00:00:43,440 --> 00:00:45,680
Speaker 1: prose Actually, that's what we used to call those up

10
00:00:46,040 --> 00:00:48,480
Speaker 1: those episodes, we wouldn't even interview with them. We would

11
00:00:48,520 --> 00:00:51,880
Speaker 1: just it's kind of like a combination of listener questions

12
00:00:52,080 --> 00:00:53,680
Speaker 1: with an interview. But we we found that there is

13
00:00:53,680 --> 00:00:55,360
Speaker 1: a better way of going upon that, and that's actually

14
00:00:55,400 --> 00:00:58,000
Speaker 1: having a conversation with our money experience. So we've had

15
00:00:58,040 --> 00:01:00,280
Speaker 1: some really good I thought I loved our episode, Katie open.

16
00:01:00,360 --> 00:01:03,000
Speaker 1: Our next interview episode actually is going to be all

17
00:01:03,000 --> 00:01:07,039
Speaker 1: about budgeting with our friend Jesse Mitchum who runs wine apps.

18
00:01:07,040 --> 00:01:09,000
Speaker 1: That's gonna be really fun. You're gonna look forward to

19
00:01:09,000 --> 00:01:11,640
Speaker 1: that one a week from today exactly. Yeah, we're just

20
00:01:11,680 --> 00:01:13,760
Speaker 1: trying to get folks clued in a little bit as

21
00:01:13,800 --> 00:01:17,560
Speaker 1: to our format and here HTM calendar works, right. But

22
00:01:17,560 --> 00:01:19,880
Speaker 1: but yeah, we've got five great listener questions to get

23
00:01:19,880 --> 00:01:22,800
Speaker 1: to today. A listener is asking about basically like how

24
00:01:22,840 --> 00:01:26,279
Speaker 1: to make withdrawals when you have an online bank. Another

25
00:01:26,280 --> 00:01:29,120
Speaker 1: listener he's wondering if he should switch back to target

26
00:01:29,160 --> 00:01:31,800
Speaker 1: date funds because he found out that by going with

27
00:01:32,080 --> 00:01:34,000
Speaker 1: an S and P five hundred fund that is costing

28
00:01:34,040 --> 00:01:39,080
Speaker 1: him more money. Surprising, that's very rare, reveale visit exactly. Yeah.

29
00:01:39,160 --> 00:01:42,520
Speaker 1: And then we've got some late breaking tax news, some

30
00:01:42,680 --> 00:01:45,880
Speaker 1: tax reporting news that will likely have an impact on

31
00:01:45,959 --> 00:01:48,800
Speaker 1: a lot of folks, in particular folks who use some

32
00:01:48,840 --> 00:01:51,720
Speaker 1: of the different platforms out there like Venmo or cash app. Yeah,

33
00:01:51,800 --> 00:01:53,600
Speaker 1: all right, we'll get to those, all those listening questions

34
00:01:53,640 --> 00:01:55,960
Speaker 1: in one second. But first, Matt, I want to do

35
00:01:56,040 --> 00:01:58,880
Speaker 1: a frugal or cheap for you here, and I always

36
00:01:58,920 --> 00:02:00,640
Speaker 1: love those. In a minute, I think we've done one,

37
00:02:00,680 --> 00:02:04,800
Speaker 1: but we have a potato peeler cara peeler, just one

38
00:02:04,800 --> 00:02:07,680
Speaker 1: of the hand peelers, right, and it's not terribly expensive there.

39
00:02:07,720 --> 00:02:10,000
Speaker 1: You can probably get them on Amazon for seven or

40
00:02:10,000 --> 00:02:13,520
Speaker 1: eight dollars, but ours like literally snapped in half. And

41
00:02:13,520 --> 00:02:15,320
Speaker 1: I don't know how long we've had it. I truly

42
00:02:15,320 --> 00:02:17,000
Speaker 1: don't know how long we've had it. I don't know

43
00:02:17,000 --> 00:02:19,080
Speaker 1: how long they're supposed to last, or if they're supposed

44
00:02:19,080 --> 00:02:20,960
Speaker 1: to snap in alfter for a certain duration. Just the

45
00:02:20,960 --> 00:02:24,280
Speaker 1: handle broke off. The handle separated from the peeler post

46
00:02:24,560 --> 00:02:26,720
Speaker 1: while you were going to town on I'm gonna guess

47
00:02:26,720 --> 00:02:30,920
Speaker 1: the potato, Yes, a potato, so I can see you

48
00:02:30,919 --> 00:02:32,760
Speaker 1: doing the Poatoes and caress are my favorite two things

49
00:02:32,760 --> 00:02:35,400
Speaker 1: to peel. But so this broke in half, and I

50
00:02:35,480 --> 00:02:37,880
Speaker 1: was like, Okay, this is like it's actually a decent brand.

51
00:02:38,000 --> 00:02:39,960
Speaker 1: I truly don't know how long we've had this. We

52
00:02:40,080 --> 00:02:42,079
Speaker 1: might have had it for ten years or something like that.

53
00:02:42,639 --> 00:02:44,920
Speaker 1: And so I was like, but I wonder if they

54
00:02:44,960 --> 00:02:46,639
Speaker 1: saw a picture of this, if they would just want

55
00:02:46,639 --> 00:02:51,560
Speaker 1: to send me a new one, just because who knows if, again,

56
00:02:51,680 --> 00:02:53,840
Speaker 1: how long these things are supposed to last. And so

57
00:02:54,080 --> 00:02:56,480
Speaker 1: I reached out on Twitter to this company and I said, hey,

58
00:02:56,880 --> 00:02:59,079
Speaker 1: here's a look at my peeler. I was just wondering

59
00:02:59,240 --> 00:03:01,760
Speaker 1: if this is normal or if you guys would be

60
00:03:01,800 --> 00:03:05,200
Speaker 1: interested or willing to send me a replacement, And they

61
00:03:05,200 --> 00:03:06,880
Speaker 1: were super cool about it, and they were like, hey,

62
00:03:07,120 --> 00:03:09,680
Speaker 1: no problem, Yeah, we'll send you a new peeler at

63
00:03:09,760 --> 00:03:12,000
Speaker 1: because they're supposed to break in half like this and

64
00:03:12,040 --> 00:03:14,480
Speaker 1: it's we stand by our stuff kind of thing, right,

65
00:03:14,919 --> 00:03:16,360
Speaker 1: And my wife they are one that I was being

66
00:03:16,440 --> 00:03:19,360
Speaker 1: cheap though for asking She was like, dude, it's a peeler,

67
00:03:19,680 --> 00:03:23,200
Speaker 1: buy a new one. Stop this, Stop this insanity. So

68
00:03:23,280 --> 00:03:25,160
Speaker 1: all right, I want to know from your perspective, am

69
00:03:25,160 --> 00:03:27,680
Speaker 1: I frugal cheap? Whether you're being frugal or cheap? So

70
00:03:27,720 --> 00:03:31,280
Speaker 1: the question is how did you go about getting their attention?

71
00:03:31,320 --> 00:03:33,880
Speaker 1: Did was it? Was this? The public tweet was the

72
00:03:33,960 --> 00:03:36,120
Speaker 1: d M and I just said, hey, guys, here's a

73
00:03:36,160 --> 00:03:38,400
Speaker 1: picture of the peeler. What do you think. I think

74
00:03:38,400 --> 00:03:40,120
Speaker 1: that's totally fine because it's not like you're dragging their

75
00:03:40,160 --> 00:03:41,520
Speaker 1: name through the mud, just being like, look at this

76
00:03:41,560 --> 00:03:44,000
Speaker 1: piece of crap vegetable peeler that just broken half on me,

77
00:03:44,600 --> 00:03:47,760
Speaker 1: where you're disparaging. Yeah, okay, because if you would have

78
00:03:47,800 --> 00:03:49,600
Speaker 1: said that, I would have said, dude, that feels that's

79
00:03:49,640 --> 00:03:51,880
Speaker 1: that's kind of cheap. A jerk really reaching out to

80
00:03:51,960 --> 00:03:54,120
Speaker 1: them via the d MS man that is the I

81
00:03:54,120 --> 00:03:55,640
Speaker 1: think one of the best ways of reaching out to

82
00:03:55,800 --> 00:03:57,880
Speaker 1: a company without having to pick up the phone and

83
00:03:57,880 --> 00:04:00,600
Speaker 1: actually make a call. And in this case especially too,

84
00:04:00,600 --> 00:04:02,360
Speaker 1: since you have since you had a picture, dude, this

85
00:04:02,400 --> 00:04:06,160
Speaker 1: is a multimedia request or you're able to show them

86
00:04:06,200 --> 00:04:08,960
Speaker 1: obviously their product and how it didn't work out for you,

87
00:04:08,920 --> 00:04:10,880
Speaker 1: you failed. I think we talked to Emily for me,

88
00:04:10,960 --> 00:04:13,840
Speaker 1: this is totally frugal my name, Yeah, absolutely, because that's

89
00:04:13,840 --> 00:04:16,640
Speaker 1: the I would, honestly um, I would reach out more

90
00:04:16,680 --> 00:04:19,320
Speaker 1: to companies if it wasn't such a hassle and a

91
00:04:19,400 --> 00:04:21,479
Speaker 1: platform like Twitter, Twitter makes it easy, can make it

92
00:04:21,520 --> 00:04:24,760
Speaker 1: so stink and easy. That might be I think maybe

93
00:04:24,800 --> 00:04:27,599
Speaker 1: the last time I actually used Twitter was was to

94
00:04:27,640 --> 00:04:29,520
Speaker 1: reach out to it. We've talked about that for a

95
00:04:29,560 --> 00:04:32,080
Speaker 1: long time, that that Twitter can help resolve customer services

96
00:04:32,160 --> 00:04:35,360
Speaker 1: use faster than a phone call can. Right, that sometimes

97
00:04:35,839 --> 00:04:39,520
Speaker 1: the most easy way to get a company's attention is

98
00:04:39,560 --> 00:04:42,080
Speaker 1: through social media, in particular Twitter. That's just seems to

99
00:04:42,120 --> 00:04:46,080
Speaker 1: be where they have their Comcast cares or Delta help

100
00:04:46,160 --> 00:04:48,040
Speaker 1: or whatever it is on high alert right well, because

101
00:04:48,080 --> 00:04:50,279
Speaker 1: they know that it's not it wouldn't be too difficult

102
00:04:50,320 --> 00:04:53,479
Speaker 1: to copy that message and instead of making idea of

103
00:04:53,520 --> 00:04:55,920
Speaker 1: making that a public key. Yeah, so I think they're

104
00:04:55,920 --> 00:04:58,280
Speaker 1: more inclined to help people that way. And this company,

105
00:04:58,279 --> 00:05:01,160
Speaker 1: I'll name them, I'll name them Oxo. They were kind

106
00:05:01,279 --> 00:05:03,000
Speaker 1: enough to replace my peeler or something. Can you say

107
00:05:03,000 --> 00:05:06,800
Speaker 1: axo or not? Always say? Okay? What is it? Kiss?

108
00:05:06,880 --> 00:05:09,720
Speaker 1: Hug kiss? All right? Maybe maybe that's always thought. Ever,

109
00:05:09,839 --> 00:05:11,960
Speaker 1: let's always thought. They sent me a new peeler. I

110
00:05:12,400 --> 00:05:14,560
Speaker 1: got to keep eight dollars in my pocket. Nice dude, Yeah,

111
00:05:14,560 --> 00:05:16,320
Speaker 1: I love it. All right. Let's mention the beer we're

112
00:05:16,320 --> 00:05:18,360
Speaker 1: having on this episode. This one is called wit. It's

113
00:05:18,400 --> 00:05:22,400
Speaker 1: by St. Bernardus and just a classic brewery out of Belgium.

114
00:05:22,560 --> 00:05:23,880
Speaker 1: We will give our thoughts on this beer at the

115
00:05:23,960 --> 00:05:25,960
Speaker 1: end of the episode, but Matt, let's get to the

116
00:05:25,960 --> 00:05:29,239
Speaker 1: topic at hand. We're answering listener questions, and for listeners

117
00:05:29,240 --> 00:05:31,640
Speaker 1: out there who want to ask, I want us to

118
00:05:31,640 --> 00:05:35,160
Speaker 1: answer their question on the future Ask htm episode, just

119
00:05:35,200 --> 00:05:37,400
Speaker 1: go to how to money dot com slash ask. There

120
00:05:37,440 --> 00:05:40,160
Speaker 1: are simple instructions there for you to submit your own

121
00:05:40,240 --> 00:05:42,040
Speaker 1: question and hopefully we'll be able to take it soon.

122
00:05:42,520 --> 00:05:45,760
Speaker 1: But this first question is about doing business with the

123
00:05:45,800 --> 00:05:49,240
Speaker 1: online banks. Hi, guys, this is Dave from Minnesota. Love

124
00:05:49,279 --> 00:05:53,120
Speaker 1: your podcast. I have a question about online banking. After

125
00:05:53,200 --> 00:05:55,640
Speaker 1: listening two guys talk about online banking and the huge

126
00:05:55,680 --> 00:05:58,480
Speaker 1: difference in savings interest, I asked my wife when the

127
00:05:58,560 --> 00:06:00,760
Speaker 1: last time was that she need to go to the bank,

128
00:06:00,839 --> 00:06:03,320
Speaker 1: and neither of us had in quite a while, except

129
00:06:03,360 --> 00:06:05,560
Speaker 1: for getting larger amounts of cash out when we need

130
00:06:05,600 --> 00:06:07,960
Speaker 1: to buy things from Facebook, Marketplace, co Exist or a

131
00:06:08,040 --> 00:06:11,039
Speaker 1: used car. So I decided I was tired of getting

132
00:06:11,080 --> 00:06:14,240
Speaker 1: next nothing for my savings interest and started looking for

133
00:06:14,240 --> 00:06:17,559
Speaker 1: an online bank to start with. Then I started seeing

134
00:06:17,600 --> 00:06:19,920
Speaker 1: that some don't accept cash deposits, and it got me

135
00:06:19,960 --> 00:06:22,600
Speaker 1: thinking about how I would get cash out for more

136
00:06:22,640 --> 00:06:25,160
Speaker 1: than what the A t M would allow. After doing

137
00:06:25,200 --> 00:06:28,839
Speaker 1: some searching, I saw some stuff that said you could

138
00:06:28,920 --> 00:06:32,920
Speaker 1: use something called debit card cash advances, and some said

139
00:06:32,960 --> 00:06:36,000
Speaker 1: that worked, some said it didn't work. But anyway, I'm

140
00:06:36,000 --> 00:06:38,680
Speaker 1: wondering how you guys handle the larger cash withdrawal issue.

141
00:06:39,040 --> 00:06:41,600
Speaker 1: Keep up the good work, all right, Dave, Thank you

142
00:06:41,640 --> 00:06:43,080
Speaker 1: so much for your question, and I like what your

143
00:06:43,120 --> 00:06:45,839
Speaker 1: heads that you're thinking through all of the implications here

144
00:06:45,880 --> 00:06:48,080
Speaker 1: before you if we take that leap you're looking before

145
00:06:48,120 --> 00:06:50,080
Speaker 1: you leave, look before you leave. My mom always told

146
00:06:50,080 --> 00:06:52,080
Speaker 1: me to do, which I rarely paid attention with. Right,

147
00:06:52,880 --> 00:06:56,480
Speaker 1: Let's let's let's talk through that this cash conundrum of

148
00:06:56,520 --> 00:06:59,760
Speaker 1: banking online because you know, although my credit card usage

149
00:07:00,120 --> 00:07:04,560
Speaker 1: online payment methods, they have certainly proliferated over the years,

150
00:07:04,600 --> 00:07:08,520
Speaker 1: resulting and fewer cash transactions. This is certainly probably the

151
00:07:08,680 --> 00:07:11,760
Speaker 1: biggest detractor from going fully online with your with your

152
00:07:11,760 --> 00:07:14,120
Speaker 1: banking needs. Uh. And you know, even if it is

153
00:07:14,160 --> 00:07:18,160
Speaker 1: a rare, if it's just an occasional occurrence, it's worth

154
00:07:18,160 --> 00:07:22,160
Speaker 1: thinking through before, you know, before you stop doing business

155
00:07:22,160 --> 00:07:24,920
Speaker 1: with a bank that does have those brick and mortar

156
00:07:24,920 --> 00:07:28,080
Speaker 1: locations where you can go in make that deposit, you know,

157
00:07:28,200 --> 00:07:30,840
Speaker 1: actually withdraw large amounts of cash and also get that

158
00:07:30,880 --> 00:07:33,640
Speaker 1: piece of bubblegum or sucker. Yeah. We I mean we

159
00:07:33,640 --> 00:07:36,360
Speaker 1: always we often talk about online banks. There are favorite

160
00:07:36,360 --> 00:07:38,400
Speaker 1: like when you boil it down, if you were to say, hey,

161
00:07:38,480 --> 00:07:40,800
Speaker 1: I just want to have one banking relationship, where should

162
00:07:40,800 --> 00:07:43,360
Speaker 1: I go? Online banks for what we recommend because they

163
00:07:43,400 --> 00:07:46,160
Speaker 1: have that best overall combination. But you're right, Matt, there's

164
00:07:46,160 --> 00:07:48,640
Speaker 1: the cash question which comes up. So what's the solution

165
00:07:48,680 --> 00:07:51,720
Speaker 1: to that? Well, a t M withdrawals, like Dave said,

166
00:07:51,760 --> 00:07:54,200
Speaker 1: I mean can help with those medium sized purchases like

167
00:07:54,240 --> 00:07:57,480
Speaker 1: buying something off Craigslist or Facebook Face, Facebook Marketplace. I mean,

168
00:07:57,520 --> 00:08:00,200
Speaker 1: the best online banks offer access to a nation wide

169
00:08:00,200 --> 00:08:01,840
Speaker 1: network of a TMS where you can get money out

170
00:08:01,840 --> 00:08:04,040
Speaker 1: without paying any fees, which I think is great. That

171
00:08:04,120 --> 00:08:05,480
Speaker 1: was one of the things that they say that they'll

172
00:08:05,520 --> 00:08:07,720
Speaker 1: reimburse a certaince you know, twenty dollars worth of a

173
00:08:07,800 --> 00:08:09,840
Speaker 1: t M fees every month or change the game for

174
00:08:09,880 --> 00:08:12,160
Speaker 1: online banks. Because for a minute it was like cool,

175
00:08:12,280 --> 00:08:15,240
Speaker 1: there's just that was a real problem. And then you

176
00:08:15,240 --> 00:08:17,520
Speaker 1: remember instead of withdrawing cash from the a t M

177
00:08:17,640 --> 00:08:19,360
Speaker 1: just going to like the counter and buying a pack

178
00:08:19,360 --> 00:08:21,160
Speaker 1: of gum doing the cash back to get the cash back,

179
00:08:21,200 --> 00:08:23,520
Speaker 1: it's like I need twenty bucks in order to go

180
00:08:23,560 --> 00:08:25,160
Speaker 1: fill up the car hang out with my friend. But

181
00:08:25,200 --> 00:08:27,800
Speaker 1: then you know, Capital One got the all point relationship,

182
00:08:27,880 --> 00:08:29,440
Speaker 1: and it was you could get a t M s

183
00:08:29,480 --> 00:08:31,600
Speaker 1: all over the place even if you had an online bank,

184
00:08:31,840 --> 00:08:34,320
Speaker 1: which helped a great deal and really made it possible

185
00:08:34,320 --> 00:08:36,439
Speaker 1: for a lot more people to transition over online banks.

186
00:08:36,840 --> 00:08:39,240
Speaker 1: But that being said, there's a daily limit, typically a

187
00:08:39,240 --> 00:08:41,600
Speaker 1: five bucks or so. Some will let you take out

188
00:08:41,600 --> 00:08:43,599
Speaker 1: a thousand dollars in a day. That's not going to

189
00:08:43,640 --> 00:08:45,720
Speaker 1: be enough though, to buy like a used car, right

190
00:08:45,760 --> 00:08:48,320
Speaker 1: unless you're just a massively frugal person looking to buy

191
00:08:48,400 --> 00:08:51,720
Speaker 1: a very very inexpensive beat down old ride. But not

192
00:08:51,760 --> 00:08:54,240
Speaker 1: to mention the inconvenience of having to make multiple trips

193
00:08:54,240 --> 00:08:55,440
Speaker 1: to an a t M over the course of a

194
00:08:55,440 --> 00:08:58,280
Speaker 1: week or two to get all that cash on hand

195
00:08:58,320 --> 00:09:00,200
Speaker 1: in order to make that purchase, so to pay handing

196
00:09:00,200 --> 00:09:02,439
Speaker 1: on how far away the a t M is, This

197
00:09:02,480 --> 00:09:05,720
Speaker 1: is beginning to look less frugal and more cheap. So yeah,

198
00:09:05,760 --> 00:09:07,760
Speaker 1: maybe we should talk a little more about what it

199
00:09:07,800 --> 00:09:11,520
Speaker 1: looks like if you handle cash on the rag and

200
00:09:11,640 --> 00:09:13,280
Speaker 1: you still want to do business with an online bank

201
00:09:13,360 --> 00:09:15,240
Speaker 1: sure which I can't remember the last time I had

202
00:09:15,440 --> 00:09:17,559
Speaker 1: that I needed personally large amounts of cash on hand,

203
00:09:17,679 --> 00:09:20,240
Speaker 1: But Dave, for you, I think another option is just

204
00:09:20,280 --> 00:09:23,080
Speaker 1: to maintain a bank account or a bank relationship with

205
00:09:23,120 --> 00:09:25,760
Speaker 1: a local brick and mortar bank uh, and then you

206
00:09:25,760 --> 00:09:29,440
Speaker 1: can just transfer larger sums for a cash withdrawal whenever

207
00:09:29,440 --> 00:09:31,440
Speaker 1: it is that you need access to a bunch of cash.

208
00:09:31,800 --> 00:09:34,280
Speaker 1: And another positive benefit here is that way you can

209
00:09:34,320 --> 00:09:37,839
Speaker 1: meet the seller at that institution at that bank for

210
00:09:37,920 --> 00:09:40,560
Speaker 1: increased safety. Right that way, you're not carrying around a

211
00:09:40,600 --> 00:09:43,480
Speaker 1: lot of cash. Um, that feels kind of you feel

212
00:09:43,480 --> 00:09:45,240
Speaker 1: a little vulnerable when you've got thousands of dollars in

213
00:09:45,280 --> 00:09:47,360
Speaker 1: your pocket. You I mean, I know some people still

214
00:09:47,400 --> 00:09:49,120
Speaker 1: like they rubber band tons of cash they keep in

215
00:09:49,200 --> 00:09:52,079
Speaker 1: their pocket. That has always seemed odd to me and

216
00:09:52,160 --> 00:09:54,240
Speaker 1: may peel off, you know, money to handle their waiter

217
00:09:54,360 --> 00:09:56,679
Speaker 1: or whatever they're are. Yeah, this it's not the nineteen seventore.

218
00:09:57,400 --> 00:10:00,280
Speaker 1: But in this example, though, you haven't gone one hundred

219
00:10:00,320 --> 00:10:03,920
Speaker 1: percent online, but you are keeping the vast majority of

220
00:10:03,960 --> 00:10:06,360
Speaker 1: your money with an online savings or checking account. You're

221
00:10:06,360 --> 00:10:08,880
Speaker 1: earning the highest rate of interest there. But then you're

222
00:10:08,920 --> 00:10:11,560
Speaker 1: able to use that local brick and mortar whenever it

223
00:10:11,640 --> 00:10:13,880
Speaker 1: is that you need it. The downside here, though, is

224
00:10:14,040 --> 00:10:17,240
Speaker 1: that the most prominent local banks they're often going to be,

225
00:10:17,679 --> 00:10:20,960
Speaker 1: you know, typically one of the bigger banks who were

226
00:10:20,960 --> 00:10:23,640
Speaker 1: not big fans of and because they charge a monthly

227
00:10:23,679 --> 00:10:26,600
Speaker 1: fee for their checking accounts. Unless you either have a

228
00:10:26,640 --> 00:10:29,920
Speaker 1: recurring deposit or a certain specific number of transactions every

229
00:10:29,960 --> 00:10:32,760
Speaker 1: single month, that's a bummer. That's uh, it's a headache

230
00:10:32,760 --> 00:10:34,440
Speaker 1: where you know where you to have to try to

231
00:10:34,480 --> 00:10:37,480
Speaker 1: maintain that. That is the reason that I finally closed

232
00:10:37,520 --> 00:10:41,320
Speaker 1: down my relationship with a local big bank years ago now,

233
00:10:41,800 --> 00:10:44,120
Speaker 1: was because they were I needed to have a total

234
00:10:44,160 --> 00:10:46,160
Speaker 1: of two thousand dollars in those accounts. I needed to

235
00:10:46,240 --> 00:10:49,480
Speaker 1: have something like five dollars in the checking and in

236
00:10:49,520 --> 00:10:52,440
Speaker 1: the savings account in order for those accounts to technically

237
00:10:52,480 --> 00:10:55,240
Speaker 1: be free. I didn't like that. From from like, it

238
00:10:55,280 --> 00:10:57,439
Speaker 1: wasn't that much money, but from a principal standpoint, this

239
00:10:57,480 --> 00:11:00,120
Speaker 1: is a company that had misbehaved and I was I

240
00:11:00,160 --> 00:11:01,480
Speaker 1: was done with him. Yeah, I was ready to kick

241
00:11:01,520 --> 00:11:02,760
Speaker 1: them to the curve. No, I get that one. You

242
00:11:02,800 --> 00:11:04,560
Speaker 1: and I if if folks have been listening for any

243
00:11:04,559 --> 00:11:06,280
Speaker 1: period of time, they know that we have an inversion

244
00:11:06,280 --> 00:11:09,160
Speaker 1: of fees and we want people to eliminate and eradicate

245
00:11:09,160 --> 00:11:11,760
Speaker 1: fees from their lives in any way that they can.

246
00:11:12,240 --> 00:11:14,160
Speaker 1: And bank fees are one of those like low hanging

247
00:11:14,200 --> 00:11:16,960
Speaker 1: fruits where it's like, just go somewhere else, because there's

248
00:11:16,960 --> 00:11:19,439
Speaker 1: a whole lot of banks that don't charge those crappy fees,

249
00:11:19,760 --> 00:11:21,320
Speaker 1: that aren't trying to play that game with you, and

250
00:11:21,559 --> 00:11:23,760
Speaker 1: they there are other ways for those banks to make money.

251
00:11:23,880 --> 00:11:26,800
Speaker 1: So yeah, prioritize doing bank doing business with the bank

252
00:11:26,840 --> 00:11:29,000
Speaker 1: that doesn't charge any fees. And if you do have

253
00:11:29,080 --> 00:11:31,200
Speaker 1: one of those local banks that isn't going to make

254
00:11:31,240 --> 00:11:33,480
Speaker 1: you jump through a bunch of hoops to eliminate fees,

255
00:11:33,840 --> 00:11:36,319
Speaker 1: then yeah, that might be a good backup to your

256
00:11:36,360 --> 00:11:40,160
Speaker 1: online banking relationship. Another another option would be to do

257
00:11:40,200 --> 00:11:43,000
Speaker 1: business with the local credit union. That's that's a great

258
00:11:43,000 --> 00:11:45,280
Speaker 1: way to avoid the headache or monthly fee that you

259
00:11:45,360 --> 00:11:48,800
Speaker 1: might get from a big bank instead. And you know, Matt,

260
00:11:48,800 --> 00:11:51,120
Speaker 1: we've talked about this too. We we think that everybody

261
00:11:51,280 --> 00:11:53,000
Speaker 1: or most people should have a relationship with a local

262
00:11:53,040 --> 00:11:56,079
Speaker 1: credit union anyway, because if you happen to be in

263
00:11:56,080 --> 00:11:58,040
Speaker 1: the position where you'll need to take out a loan,

264
00:11:58,520 --> 00:12:00,840
Speaker 1: oftentimes a credit union can offer you the best rate.

265
00:12:01,320 --> 00:12:03,760
Speaker 1: And hopefully not for something like a car loan, because

266
00:12:03,800 --> 00:12:05,280
Speaker 1: that's not something we want to see you taking a

267
00:12:05,280 --> 00:12:07,200
Speaker 1: loan out for. But if you want to have like

268
00:12:07,280 --> 00:12:10,080
Speaker 1: a backstop to your emergency fund where maybe you're gonna

269
00:12:10,080 --> 00:12:11,920
Speaker 1: take out a helock and that's something that I did

270
00:12:11,960 --> 00:12:13,559
Speaker 1: a number of years ago, and buying a house, you

271
00:12:13,559 --> 00:12:15,720
Speaker 1: want to get a mortgage vote from a credit union.

272
00:12:15,720 --> 00:12:19,080
Speaker 1: In addition, to online banks and you know, and other

273
00:12:19,080 --> 00:12:22,280
Speaker 1: mortgage brokers. Yeah, and that's I've done both of those things,

274
00:12:22,320 --> 00:12:26,400
Speaker 1: gotten mortgages and helocks with local credit unions because they

275
00:12:26,440 --> 00:12:28,679
Speaker 1: were the ones who offered the best rate by far. Yep.

276
00:12:28,960 --> 00:12:31,400
Speaker 1: And and on the front with like they can act

277
00:12:31,480 --> 00:12:33,840
Speaker 1: like that local bank account and that local place to

278
00:12:33,880 --> 00:12:37,720
Speaker 1: do the transaction, but without those monthly feast typically. So like,

279
00:12:37,800 --> 00:12:39,679
Speaker 1: for instance, one of our local credit unions here in

280
00:12:39,679 --> 00:12:42,040
Speaker 1: Atlanta requires just a five dollar deposit and you get

281
00:12:42,040 --> 00:12:43,240
Speaker 1: to join the club. You get to be the credit

282
00:12:43,320 --> 00:12:47,360
Speaker 1: union member, right, Welcome to the party. Yeah, And so

283
00:12:47,400 --> 00:12:50,720
Speaker 1: then that combo of online banking credit union could be

284
00:12:50,840 --> 00:12:54,160
Speaker 1: even better than the combo of online bank and big

285
00:12:54,200 --> 00:12:57,240
Speaker 1: brick and mortar bank. The biggest downside though, of your

286
00:12:57,240 --> 00:13:01,280
Speaker 1: local credit union is the online ex experience isn't all

287
00:13:01,280 --> 00:13:03,400
Speaker 1: that great. They user in interface on many of their

288
00:13:03,400 --> 00:13:07,240
Speaker 1: websites could stand to be improved. But still I think

289
00:13:07,800 --> 00:13:10,120
Speaker 1: you can deal with that for the times you do

290
00:13:10,240 --> 00:13:12,400
Speaker 1: need to use that account to transfer money from your

291
00:13:12,400 --> 00:13:14,880
Speaker 1: online bank in over into your credit union, or if

292
00:13:14,880 --> 00:13:17,280
Speaker 1: you do get a bunch of cash and you're like, Okay,

293
00:13:17,400 --> 00:13:20,160
Speaker 1: I don't want this line around in my house. You

294
00:13:20,200 --> 00:13:22,199
Speaker 1: can just take that into your credit union deposit and

295
00:13:22,240 --> 00:13:23,720
Speaker 1: then move the funds back over to your online pay

296
00:13:23,800 --> 00:13:26,480
Speaker 1: account if if that's what you prefer. Totally. Yeah. They

297
00:13:26,480 --> 00:13:28,520
Speaker 1: also may not have an app for you to use.

298
00:13:28,559 --> 00:13:31,600
Speaker 1: I mean there's they're like, what app? What are you

299
00:13:31,640 --> 00:13:34,480
Speaker 1: talking about? Uh So with with one of the built

300
00:13:34,480 --> 00:13:37,160
Speaker 1: on mstoster, yeah, you have to like, yeah, punch it in,

301
00:13:37,280 --> 00:13:39,800
Speaker 1: punch in the codes, typing the e x C to execute,

302
00:13:39,840 --> 00:13:43,520
Speaker 1: to run. But with one local credit union that I

303
00:13:43,600 --> 00:13:46,840
Speaker 1: had a mortgage with, one of the things I realized

304
00:13:46,920 --> 00:13:49,320
Speaker 1: that I think they did just to cut corn not

305
00:13:49,320 --> 00:13:51,280
Speaker 1: cut corners from like a legal standpoint, but maybe just

306
00:13:51,320 --> 00:13:53,880
Speaker 1: to save money, is that they didn't issue regular month

307
00:13:53,920 --> 00:13:56,600
Speaker 1: monthly statements for the mortgage that I had with them.

308
00:13:56,800 --> 00:13:58,920
Speaker 1: And of course I got paid online. So you're probably thinking, well,

309
00:13:58,960 --> 00:14:01,760
Speaker 1: it's not that who cans, right, Well, anytime I needed

310
00:14:01,800 --> 00:14:04,520
Speaker 1: to apply for another mortgage for a separate property, they

311
00:14:04,559 --> 00:14:07,520
Speaker 1: always want to see the most recent two statements at least, right,

312
00:14:08,040 --> 00:14:10,640
Speaker 1: and like the most recent statement would be from eight

313
00:14:10,640 --> 00:14:12,920
Speaker 1: months ago, and so I would always have to go

314
00:14:12,960 --> 00:14:15,320
Speaker 1: to the lender and say I'm sorry, I'm with this

315
00:14:15,360 --> 00:14:18,920
Speaker 1: credit union. They don't issue regular monthly statements. It's not

316
00:14:19,000 --> 00:14:21,080
Speaker 1: that they're not being delivered to me. They don't create

317
00:14:21,160 --> 00:14:22,800
Speaker 1: them like that. They only do them like once every

318
00:14:22,840 --> 00:14:24,960
Speaker 1: six months, and so I'd always have to do like

319
00:14:25,000 --> 00:14:28,720
Speaker 1: a series of screenshots of my payment history and then

320
00:14:28,720 --> 00:14:30,560
Speaker 1: another screen should have my Loman balance and be like

321
00:14:30,680 --> 00:14:32,680
Speaker 1: this is all I got, I remember that, Okay to

322
00:14:32,720 --> 00:14:34,880
Speaker 1: do the same thing. Yeah, and it's yeah, that's one

323
00:14:34,880 --> 00:14:37,120
Speaker 1: of those jankie things. Is sometimes the local credit unions,

324
00:14:37,400 --> 00:14:39,760
Speaker 1: if they've got two or three branches and they're super small,

325
00:14:39,880 --> 00:14:43,480
Speaker 1: they just don't have the infrastructure to deliver the services

326
00:14:43,520 --> 00:14:47,000
Speaker 1: that a lot of the other banks and they expect

327
00:14:47,120 --> 00:14:49,400
Speaker 1: gonna be able to give you. Yeah, yeah, absolutely. And

328
00:14:49,520 --> 00:14:52,840
Speaker 1: Dave was also wondering about depositing cash, and that's another

329
00:14:53,040 --> 00:14:55,960
Speaker 1: side of the coin here to to address. Uh, some

330
00:14:56,040 --> 00:14:59,480
Speaker 1: banks actually have workarounds, so capital and three sixty they

331
00:14:59,480 --> 00:15:03,840
Speaker 1: actually take cash deposits at CVS pharmacies, which is really cool.

332
00:15:04,160 --> 00:15:07,320
Speaker 1: They'll accept up to nine and nine dollars a day,

333
00:15:07,520 --> 00:15:10,640
Speaker 1: don't you dare, Like, I'm sorry, sir, I'm gonna give

334
00:15:10,680 --> 00:15:13,960
Speaker 1: you a stellar back to you exactly. I got tens here.

335
00:15:14,000 --> 00:15:16,440
Speaker 1: It's like here you go. But you can Austin deposit

336
00:15:16,480 --> 00:15:19,120
Speaker 1: cash at their A T M S. But again, Enjoel,

337
00:15:19,160 --> 00:15:21,880
Speaker 1: so like you said, I mean, I think it makes

338
00:15:21,920 --> 00:15:24,320
Speaker 1: sense to keep some cash on hand for some of

339
00:15:24,320 --> 00:15:26,720
Speaker 1: those random times that you need cash for spending, right,

340
00:15:26,800 --> 00:15:29,400
Speaker 1: and so you might receive some cash after maybe making

341
00:15:29,440 --> 00:15:32,360
Speaker 1: a sale. We'll keep that cash on hand. About depositing

342
00:15:32,400 --> 00:15:34,520
Speaker 1: it really generous to you over the holidays and maybe

343
00:15:34,560 --> 00:15:37,920
Speaker 1: like your Christmas presidents five bucks. Yeah, we'll keep that

344
00:15:37,920 --> 00:15:39,280
Speaker 1: on hand the next time you need to make a

345
00:15:39,360 --> 00:15:41,920
Speaker 1: purchase on Facebook market place. I mean, we're not talking

346
00:15:41,920 --> 00:15:44,400
Speaker 1: about a large amount of interest here. Uh. And that's

347
00:15:44,400 --> 00:15:46,480
Speaker 1: also that's not the kind of money for you to

348
00:15:46,560 --> 00:15:49,280
Speaker 1: keep it in a safe, secure place in your home.

349
00:15:49,600 --> 00:15:51,800
Speaker 1: At least for me, that's not necessarily gonna make me

350
00:15:51,880 --> 00:15:54,240
Speaker 1: nervous about about keeping that kind of money in my house.

351
00:15:54,440 --> 00:15:55,800
Speaker 1: But if that is you, if if you don't like

352
00:15:55,840 --> 00:15:58,760
Speaker 1: having that cash hanging around, just maybe spending on groceries

353
00:15:58,760 --> 00:16:00,800
Speaker 1: that month and then just make a note of it

354
00:16:00,840 --> 00:16:04,080
Speaker 1: in your budget, deduct that from the you know, I

355
00:16:04,120 --> 00:16:05,680
Speaker 1: guess it depends on what app you used. In my mind,

356
00:16:05,720 --> 00:16:07,880
Speaker 1: I'm picturing my Excel sheet. But I would say if

357
00:16:07,880 --> 00:16:09,320
Speaker 1: I had five hundred bucks that I was gonna put

358
00:16:09,320 --> 00:16:13,000
Speaker 1: towards groceries. Just subtract five dollars from the monthly amount

359
00:16:13,320 --> 00:16:16,280
Speaker 1: and just reset it for the following month. But Dave,

360
00:16:16,360 --> 00:16:17,760
Speaker 1: you know, if this is something that feels like a

361
00:16:17,760 --> 00:16:19,560
Speaker 1: major issue for you, just make sure that you're you

362
00:16:19,560 --> 00:16:22,640
Speaker 1: know that you're able to prioritize a bank doing business

363
00:16:22,720 --> 00:16:24,200
Speaker 1: with the bank went one of the online banks that

364
00:16:24,240 --> 00:16:28,440
Speaker 1: makes it easier to withdraw and deposit cash. Um, you know,

365
00:16:28,440 --> 00:16:31,320
Speaker 1: because I think the cash dilemma of going online with

366
00:16:31,400 --> 00:16:33,080
Speaker 1: with your banking it kind of seems like a small

367
00:16:33,080 --> 00:16:35,400
Speaker 1: one that should rarely be an issue. I feel like

368
00:16:35,440 --> 00:16:37,800
Speaker 1: it's one that weighs more on our minds, like in

369
00:16:37,880 --> 00:16:40,520
Speaker 1: the what if scenario, as opposed to something that we

370
00:16:40,520 --> 00:16:44,160
Speaker 1: are actually facing regularly, almost like rain anxiety for electric vehicles,

371
00:16:44,160 --> 00:16:45,560
Speaker 1: people are like, oh, no, it's only got two h

372
00:16:45,840 --> 00:16:47,640
Speaker 1: forty miles of range, how am I going to make

373
00:16:47,640 --> 00:16:50,280
Speaker 1: it through a day? But most people who finally actually

374
00:16:50,280 --> 00:16:53,440
Speaker 1: start driving TV they realized that that that worry was

375
00:16:53,440 --> 00:16:55,800
Speaker 1: overblown and granted, how often do you take a road trip,

376
00:16:55,840 --> 00:16:57,120
Speaker 1: Like it's not going to be great for the road

377
00:16:57,160 --> 00:17:00,560
Speaker 1: trip that's you know, six miles and sins you're gonna

378
00:17:00,560 --> 00:17:02,480
Speaker 1: have to recharge a couple of times, but I think

379
00:17:02,560 --> 00:17:05,480
Speaker 1: most it's very similar to that, where it is a

380
00:17:05,600 --> 00:17:07,800
Speaker 1: very simple, easy work around. Yeah, it doesn't have to

381
00:17:07,840 --> 00:17:09,440
Speaker 1: stress you out, and people build it up in their

382
00:17:09,440 --> 00:17:11,159
Speaker 1: minds to be worse than it's actually going to be.

383
00:17:11,480 --> 00:17:15,040
Speaker 1: And so yeah, I think the plus sides of doing

384
00:17:15,119 --> 00:17:19,040
Speaker 1: having a relationship with an online bank far outweigh the

385
00:17:19,119 --> 00:17:21,720
Speaker 1: downsides of that of that move. And I think you

386
00:17:21,760 --> 00:17:24,920
Speaker 1: should make an online bank in all likelihood your main bank.

387
00:17:25,200 --> 00:17:27,680
Speaker 1: And then yeah, hopefully we give you some good ideas,

388
00:17:27,680 --> 00:17:30,400
Speaker 1: some good suggestions so that you can still move cash

389
00:17:30,400 --> 00:17:33,359
Speaker 1: around when need be. But Dave, best of luck to

390
00:17:33,359 --> 00:17:35,480
Speaker 1: you on that front. All right, We've got more listener

391
00:17:35,560 --> 00:17:37,720
Speaker 1: questions to get to, including a kind of nerdy question

392
00:17:37,800 --> 00:17:39,879
Speaker 1: about rental property investing. We're actually gonna get to that

393
00:17:39,920 --> 00:17:52,280
Speaker 1: one next right after this we are back from the break,

394
00:17:52,320 --> 00:17:55,120
Speaker 1: and Joe, we will eventually get to that target date

395
00:17:55,200 --> 00:17:57,240
Speaker 1: funds question. We'll talk about that here in a second. But,

396
00:17:57,280 --> 00:17:59,600
Speaker 1: like you alluded to before the break, let's hear that

397
00:17:59,680 --> 00:18:05,439
Speaker 1: question Alstenary, who has a newly acquired investment property? Hi guys,

398
00:18:05,560 --> 00:18:09,159
Speaker 1: longtime listener, Love the podcast and appreciate you guys always

399
00:18:09,160 --> 00:18:13,600
Speaker 1: answering listener questions. I have a question as a new renter.

400
00:18:13,920 --> 00:18:18,160
Speaker 1: We just rented our first house and we're doing it

401
00:18:18,240 --> 00:18:22,360
Speaker 1: just directly us to the renter. I was curious if

402
00:18:22,400 --> 00:18:28,320
Speaker 1: you guys did yours under business as an LLC or

403
00:18:28,760 --> 00:18:33,880
Speaker 1: do you maintain your relationship with your renters just through

404
00:18:34,200 --> 00:18:38,879
Speaker 1: person to person interaction as well? Also love beer plays

405
00:18:38,920 --> 00:18:41,640
Speaker 1: that'd recommend if you ever get a chance and you're

406
00:18:41,640 --> 00:18:45,680
Speaker 1: in Charlotte. Armored Cow Brewery and my favorite beer there

407
00:18:45,760 --> 00:18:48,960
Speaker 1: is the Bang Bang Hazy. I p a thanks in advance.

408
00:18:49,720 --> 00:18:51,880
Speaker 1: All right, Corey, I love that question, and and I've

409
00:18:51,960 --> 00:18:54,000
Speaker 1: not heard of the brewery you just mentioned before. Did

410
00:18:54,000 --> 00:18:57,159
Speaker 1: you see Armored cowkay? Which nice? I mean there's like

411
00:18:57,200 --> 00:19:00,480
Speaker 1: an armored car. All sorts of names for brew easy days,

412
00:19:00,640 --> 00:19:02,480
Speaker 1: we're all about it. I feel like there's even more

413
00:19:02,480 --> 00:19:04,600
Speaker 1: funky names for the actual beers that they make. But

414
00:19:05,040 --> 00:19:07,480
Speaker 1: uh yeah, we're always up for a new beer, new brewery.

415
00:19:07,520 --> 00:19:09,359
Speaker 1: Next time we're in Charlotte, we'll hit it up and

416
00:19:09,359 --> 00:19:11,480
Speaker 1: hopefully we can get a taste of some of that stuff.

417
00:19:11,520 --> 00:19:14,480
Speaker 1: So SU and uh, Corey or a new Landlords or

418
00:19:14,560 --> 00:19:17,320
Speaker 1: pumped for you on that front. The this question about

419
00:19:17,359 --> 00:19:19,520
Speaker 1: whether or not to form an LLC, it's a very

420
00:19:19,640 --> 00:19:23,520
Speaker 1: very good one, and for anybody who is considering investing

421
00:19:23,600 --> 00:19:26,320
Speaker 1: in real estate, it's this is an answer you're gonna

422
00:19:26,359 --> 00:19:28,080
Speaker 1: want to listen to, because I'm sure this is going

423
00:19:28,160 --> 00:19:30,159
Speaker 1: to cross your mind at some at some point, and

424
00:19:30,200 --> 00:19:32,320
Speaker 1: you might be actually surprised to hear that neither Matt

425
00:19:32,480 --> 00:19:34,679
Speaker 1: or I have actually formed an LLC for any of

426
00:19:34,680 --> 00:19:37,639
Speaker 1: our rental properties. That doesn't mean that it's not the

427
00:19:37,640 --> 00:19:40,479
Speaker 1: best way forward in some cases, Like so, let's talk

428
00:19:40,520 --> 00:19:43,200
Speaker 1: about why you might want to go that routes. And

429
00:19:43,720 --> 00:19:47,080
Speaker 1: so the basically the legal designation that an LLC can

430
00:19:47,119 --> 00:19:50,480
Speaker 1: provide would be able to help insulate your personal assets

431
00:19:50,480 --> 00:19:54,560
Speaker 1: from a potential tenant lawsuit right in in that unfortunate

432
00:19:54,560 --> 00:19:58,280
Speaker 1: event that something happened. It's like this protective bubble of sorts.

433
00:19:58,400 --> 00:20:00,479
Speaker 1: And if you go this route, uh, you're gonna want

434
00:20:00,480 --> 00:20:02,439
Speaker 1: to have one for each and every property, not just

435
00:20:02,480 --> 00:20:04,800
Speaker 1: one LLC for all your properties if you own like

436
00:20:04,840 --> 00:20:07,359
Speaker 1: let's say five or six, because then someone sues you

437
00:20:07,800 --> 00:20:10,600
Speaker 1: sues the LLC, and then all of those properties are

438
00:20:10,640 --> 00:20:13,959
Speaker 1: lumped under one bubble. You want to create a separate

439
00:20:14,000 --> 00:20:17,240
Speaker 1: bubble for each and everyone. And so LLCs cost money.

440
00:20:17,280 --> 00:20:19,800
Speaker 1: It's important to mention that each LLC you have is

441
00:20:19,840 --> 00:20:22,359
Speaker 1: going to cost you money to create, and then somewhere

442
00:20:22,400 --> 00:20:24,560
Speaker 1: between a hundred and eight hundred dollars a year, I

443
00:20:24,560 --> 00:20:28,720
Speaker 1: think Matt in California, eight hundred dollars is the annual

444
00:20:28,760 --> 00:20:30,880
Speaker 1: amount you have to pay if you have an LLC.

445
00:20:30,960 --> 00:20:33,679
Speaker 1: Everything costs more in California, he does. So it's just

446
00:20:33,720 --> 00:20:35,760
Speaker 1: important to note that, like, instead, you might want to

447
00:20:35,760 --> 00:20:40,760
Speaker 1: look into incorporating in Delaware, the most popular uh states

448
00:20:40,760 --> 00:20:43,520
Speaker 1: of former business. Yeah, but that's just one thing worth

449
00:20:43,560 --> 00:20:46,119
Speaker 1: mentioning is that the cost factor associated with LLCs. But

450
00:20:46,560 --> 00:20:49,159
Speaker 1: on the other side, it can provide legal protection, a

451
00:20:49,160 --> 00:20:53,520
Speaker 1: massive amount of legal protection, just curbing a the ability

452
00:20:53,760 --> 00:20:57,200
Speaker 1: of a lawsuit to impact all of your personal finances.

453
00:20:57,240 --> 00:20:59,639
Speaker 1: It's it's really just allowing someone to come after in

454
00:20:59,680 --> 00:21:02,440
Speaker 1: the case of a lawsuit that that one property that

455
00:21:02,720 --> 00:21:05,359
Speaker 1: is silid away as an LLC. That's right, Yeah, and

456
00:21:05,520 --> 00:21:09,879
Speaker 1: LLC quite literally limits the liability to just that specific corporation.

457
00:21:10,160 --> 00:21:13,120
Speaker 1: And actually, I think the precedent for this being decided

458
00:21:13,400 --> 00:21:15,399
Speaker 1: was I think the Supreme Court decided This is like

459
00:21:15,520 --> 00:21:18,440
Speaker 1: decades ago, but it was something like a taxi cab

460
00:21:18,760 --> 00:21:22,600
Speaker 1: company owner. He actually uh incorporated each one of his

461
00:21:22,760 --> 00:21:25,040
Speaker 1: taxi cabs as their own corporations, like the each hap

462
00:21:25,359 --> 00:21:28,440
Speaker 1: their LLC. So if one driver gets in erect exactly,

463
00:21:28,520 --> 00:21:31,080
Speaker 1: bring down the whole company exactly and so and they

464
00:21:31,280 --> 00:21:33,440
Speaker 1: the court decided no. So I guess the owner may

465
00:21:33,480 --> 00:21:36,200
Speaker 1: have lost that singular cab when I don't know, the

466
00:21:36,320 --> 00:21:38,520
Speaker 1: driver struck a pedestrian or something like that. But at

467
00:21:38,600 --> 00:21:40,359
Speaker 1: least the owner was able to maintain the rest of

468
00:21:40,400 --> 00:21:44,320
Speaker 1: his the company, the rest of his taxi cabs. But yes,

469
00:21:44,400 --> 00:21:48,480
Speaker 1: it does cost you money to create and maintain these LLCs.

470
00:21:48,960 --> 00:21:50,800
Speaker 1: That being said, it's not a deal breaker, right, even

471
00:21:50,800 --> 00:21:53,000
Speaker 1: though the money to create these things like they do

472
00:21:53,160 --> 00:21:55,439
Speaker 1: add up. There's folks who definitely go this route for

473
00:21:55,480 --> 00:21:57,880
Speaker 1: that protection. But you know, I think the reason we've

474
00:21:57,960 --> 00:22:00,080
Speaker 1: never really opted to go the LLC route but for

475
00:22:00,119 --> 00:22:02,119
Speaker 1: it is just because of what's known as the do

476
00:22:02,359 --> 00:22:05,959
Speaker 1: on sale clause. When we talked to some lawyer friends,

477
00:22:06,040 --> 00:22:09,000
Speaker 1: they they've advised us against going this route because there's

478
00:22:09,040 --> 00:22:11,040
Speaker 1: this this chance, even though it's like it's kind of

479
00:22:11,040 --> 00:22:13,040
Speaker 1: a small chance, but there's a chance that your lender

480
00:22:13,080 --> 00:22:16,040
Speaker 1: could basically tell you that you've got a month, You've

481
00:22:16,080 --> 00:22:18,439
Speaker 1: got I think exactly thirty days to pay off your

482
00:22:18,480 --> 00:22:22,040
Speaker 1: mortgage if you transfer ownership of that property from yourself

483
00:22:22,080 --> 00:22:24,560
Speaker 1: to a separate company. And so is that something Yeah,

484
00:22:24,600 --> 00:22:27,840
Speaker 1: that happens very often. Not really not from everything that

485
00:22:27,840 --> 00:22:30,679
Speaker 1: we've heard of from other real estate investors of you know,

486
00:22:30,720 --> 00:22:32,879
Speaker 1: from what we've read. Uh, And the guidelines were actually

487
00:22:32,960 --> 00:22:36,480
Speaker 1: rewritten by Fannie May and back in seventeen to make

488
00:22:36,520 --> 00:22:39,040
Speaker 1: it far less likely that this could even happen. But

489
00:22:39,080 --> 00:22:40,800
Speaker 1: at least at the time when when we were kind

490
00:22:40,800 --> 00:22:42,919
Speaker 1: of first starting out, it freaked us out enough that

491
00:22:42,960 --> 00:22:45,639
Speaker 1: we opted to go a different route. Um, maybe we

492
00:22:45,680 --> 00:22:49,160
Speaker 1: should consider though, right, especially as our as our net worth,

493
00:22:49,160 --> 00:22:52,159
Speaker 1: our personal wealth has grown over the years, because in

494
00:22:52,359 --> 00:22:54,760
Speaker 1: LC it is it can be a really helpful wealth

495
00:22:54,840 --> 00:23:00,680
Speaker 1: protection mechanism should adverse circumstances come along. Yeah. So, yeah,

496
00:23:00,800 --> 00:23:03,159
Speaker 1: it is something that I think the that do on

497
00:23:03,200 --> 00:23:05,040
Speaker 1: sale clause. We got freaked out a little bit, but

498
00:23:05,119 --> 00:23:07,920
Speaker 1: I think it's not it's it's not much of an issue,

499
00:23:08,200 --> 00:23:10,520
Speaker 1: and so I think an LC should be on your radar,

500
00:23:10,920 --> 00:23:13,760
Speaker 1: and it might make the most sense for you, depending

501
00:23:13,760 --> 00:23:16,520
Speaker 1: on your specific situation. But there's also another route that

502
00:23:16,520 --> 00:23:19,040
Speaker 1: real estate investors can and should consider, and that's an

503
00:23:19,160 --> 00:23:22,399
Speaker 1: umbrella policy with your insurance company, because those can provide

504
00:23:22,440 --> 00:23:25,520
Speaker 1: a ton of coverage and they're pretty inexpensive to So basically,

505
00:23:25,560 --> 00:23:27,520
Speaker 1: you want to have the landlord policy in place, like

506
00:23:27,600 --> 00:23:30,399
Speaker 1: you do on any rental property that you own. You

507
00:23:30,400 --> 00:23:32,560
Speaker 1: have also known as a dwelling fire policy, because it

508
00:23:33,000 --> 00:23:36,119
Speaker 1: covers the actual property, not the contents of the property,

509
00:23:36,160 --> 00:23:38,560
Speaker 1: so not the possessions of whoever. That's because the tenant

510
00:23:38,600 --> 00:23:41,959
Speaker 1: who's in there has renters insurance or they should, and

511
00:23:42,080 --> 00:23:46,000
Speaker 1: that covers their possessions. But if you add an addition

512
00:23:46,160 --> 00:23:48,320
Speaker 1: to that, to that landlord policy, that's what I want

513
00:23:48,359 --> 00:23:50,760
Speaker 1: to call it, then you can add an umbrella policy

514
00:23:50,800 --> 00:23:53,760
Speaker 1: above and beyond it, giving yourself coverage in like basically,

515
00:23:53,840 --> 00:23:55,840
Speaker 1: it's told out in millions, so you could choose just

516
00:23:55,880 --> 00:23:59,080
Speaker 1: a flat out one million dollar umbrella policy million dollars,

517
00:23:59,280 --> 00:24:00,679
Speaker 1: or you can bump it up to two million or

518
00:24:00,680 --> 00:24:02,959
Speaker 1: three million, depending on kind of the amount of assets

519
00:24:03,000 --> 00:24:06,600
Speaker 1: you're looking to to have um ensured. And the great

520
00:24:06,600 --> 00:24:08,960
Speaker 1: thing about these policies is that they provide just a

521
00:24:09,080 --> 00:24:12,000
Speaker 1: large monetary amount of coverage for a meager amount of money.

522
00:24:12,040 --> 00:24:15,440
Speaker 1: So that means like it could be like three annually

523
00:24:15,440 --> 00:24:18,160
Speaker 1: for a million dollar policies really affordable, which could cover

524
00:24:18,320 --> 00:24:21,719
Speaker 1: multiple rental units, right, and so yeah, that this this

525
00:24:21,800 --> 00:24:24,119
Speaker 1: second layer might provide all the coverage that a real

526
00:24:24,200 --> 00:24:26,439
Speaker 1: estate investor needs. But it's also important to know the

527
00:24:26,480 --> 00:24:29,680
Speaker 1: limitations of both of these options. Neither one is completely

528
00:24:29,680 --> 00:24:33,480
Speaker 1: full proof, and we're not lawyers, and so we're not

529
00:24:33,520 --> 00:24:36,760
Speaker 1: gonna go is not legal financial advice, Yes, so we're

530
00:24:36,760 --> 00:24:38,679
Speaker 1: not going to go into that, but just know that

531
00:24:38,720 --> 00:24:42,040
Speaker 1: those are kind of the two mechanisms that real estate

532
00:24:42,080 --> 00:24:45,720
Speaker 1: investors would typically use to shield themselves from some legal

533
00:24:45,760 --> 00:24:48,920
Speaker 1: liabilities if stuff were to go down that obviously you

534
00:24:48,920 --> 00:24:51,880
Speaker 1: don't want to go down. Um, And I think depending

535
00:24:51,880 --> 00:24:56,200
Speaker 1: on your particular situation, either one could be a good choice. Yeah.

536
00:24:56,280 --> 00:24:59,240
Speaker 1: Not only could that umbrella policy cover rental properties that

537
00:24:59,320 --> 00:25:01,239
Speaker 1: you own, but it it also go it covers you

538
00:25:01,280 --> 00:25:03,439
Speaker 1: as an individual. And so let's say you have a partner,

539
00:25:03,680 --> 00:25:06,160
Speaker 1: it could cover you and your partner, and not only

540
00:25:06,160 --> 00:25:09,360
Speaker 1: when it comes to those investment properties, but also when

541
00:25:09,359 --> 00:25:12,160
Speaker 1: it comes to coverage that goes above and beyond, say

542
00:25:12,320 --> 00:25:14,879
Speaker 1: that your auto insurance, so your liability insurance that you

543
00:25:14,920 --> 00:25:17,800
Speaker 1: have on your car. That's another sweet little feature that

544
00:25:17,840 --> 00:25:21,040
Speaker 1: you get with Umbrella Insurance. But Joel's here now from

545
00:25:21,040 --> 00:25:24,280
Speaker 1: our next listener. He's got a question about this fun

546
00:25:24,480 --> 00:25:26,959
Speaker 1: little refund that he was receiving from an investment that

547
00:25:27,040 --> 00:25:30,520
Speaker 1: was within his four oh one K and Matt and Jewel.

548
00:25:30,720 --> 00:25:34,120
Speaker 1: This is Kevin from Massachusetts. I recently changed my contributions

549
00:25:34,160 --> 00:25:36,240
Speaker 1: from my work provided target date fund to the low

550
00:25:36,280 --> 00:25:39,639
Speaker 1: cost Fidelity index fund. With this new investment, it does

551
00:25:39,680 --> 00:25:42,480
Speaker 1: look like I'm paying over triple and fees now. Apparently

552
00:25:42,520 --> 00:25:44,320
Speaker 1: there was a revenue credit that was there when I

553
00:25:44,320 --> 00:25:46,080
Speaker 1: was in the target date fund, which I didn't pay

554
00:25:46,119 --> 00:25:48,879
Speaker 1: attention to, but now no longer applies to my current election.

555
00:25:49,320 --> 00:25:51,480
Speaker 1: From what I found, revenue credit is an incentive for

556
00:25:51,520 --> 00:25:53,600
Speaker 1: groups to invest in a certain fund. But not sure

557
00:25:53,600 --> 00:25:55,679
Speaker 1: if that's correct. Should I leave it as it is

558
00:25:55,800 --> 00:25:57,879
Speaker 1: or is it worth switching back since fees do eventually

559
00:25:57,880 --> 00:25:59,960
Speaker 1: add up. Thanks for all to help you guys provide,

560
00:26:00,000 --> 00:26:02,840
Speaker 1: and of course to beer recommendations. All right, Kevin, this

561
00:26:02,920 --> 00:26:05,800
Speaker 1: is a great question, and it's it's actually it's kind

562
00:26:05,840 --> 00:26:07,800
Speaker 1: of a unique one. Matt like This isn't something that

563
00:26:07,880 --> 00:26:10,760
Speaker 1: most of our listeners are probably going to encounter at

564
00:26:10,760 --> 00:26:13,960
Speaker 1: any point in their investing lives. It's just not widely applicable.

565
00:26:14,000 --> 00:26:15,639
Speaker 1: But I just thought it was so interesting. I'm like,

566
00:26:15,640 --> 00:26:17,480
Speaker 1: we need to talk. This is a great way for

567
00:26:17,560 --> 00:26:20,359
Speaker 1: us to talk about the revenue credit. Yes, exactly, So

568
00:26:20,680 --> 00:26:23,800
Speaker 1: the revenue credit. This is an interesting thing, and it

569
00:26:23,920 --> 00:26:26,960
Speaker 1: is when a four oh one K provider refunds money

570
00:26:26,960 --> 00:26:31,400
Speaker 1: to folks in that that particular fund because the expenses

571
00:26:31,440 --> 00:26:34,560
Speaker 1: associated with running that fund were less than they projected,

572
00:26:34,840 --> 00:26:39,440
Speaker 1: and bigger employers, states and university systems. They're basically how

573
00:26:39,440 --> 00:26:42,120
Speaker 1: it works is they're they're able to negotiate for these

574
00:26:42,160 --> 00:26:44,879
Speaker 1: revenue credits in return for bringing a lot of customers

575
00:26:45,119 --> 00:26:48,080
Speaker 1: to that brokeer term and to that particular fund. And so,

576
00:26:48,359 --> 00:26:53,159
Speaker 1: uh yeah, individual investors like Kevin here are able to

577
00:26:53,200 --> 00:26:56,639
Speaker 1: get a credit for investing in specific funds inside of

578
00:26:56,640 --> 00:26:59,240
Speaker 1: that retirement plan. It's kind of interesting. Again, this isn't

579
00:26:59,240 --> 00:27:01,879
Speaker 1: something associated with most plans, so most of our listeners

580
00:27:01,960 --> 00:27:04,359
Speaker 1: are probably never heard of it, never experienced it, which

581
00:27:04,359 --> 00:27:08,200
Speaker 1: I get. But Kevin, he yeah, he's kind of incentivized,

582
00:27:08,240 --> 00:27:10,720
Speaker 1: I guess to invest in a particular fund because of

583
00:27:10,720 --> 00:27:12,920
Speaker 1: this revenue credit that's associated with it. Sure, it kind

584
00:27:12,960 --> 00:27:15,800
Speaker 1: of it makes me think of you get any like

585
00:27:15,840 --> 00:27:19,560
Speaker 1: no claim check rewards or whatever from your insurance company

586
00:27:19,600 --> 00:27:20,959
Speaker 1: if you haven't made a claim that year. It kind

587
00:27:21,000 --> 00:27:22,280
Speaker 1: of makes me think of that sort of like this

588
00:27:22,359 --> 00:27:24,720
Speaker 1: like end of year. Well, it's a nice little bonus

589
00:27:24,760 --> 00:27:27,080
Speaker 1: where it's just like, hey, we appreciate you. And even

590
00:27:27,119 --> 00:27:29,680
Speaker 1: though it's for a small amount, it generates these warm

591
00:27:29,680 --> 00:27:31,480
Speaker 1: feelings inside of me, and it makes me want to

592
00:27:31,480 --> 00:27:35,080
Speaker 1: stay with that company. Even if my independent insurance broker

593
00:27:35,400 --> 00:27:37,719
Speaker 1: agent tells me to go somewhere else, I think I'm

594
00:27:37,720 --> 00:27:39,560
Speaker 1: gonna have some feelings of like, oh, but but they

595
00:27:39,560 --> 00:27:41,160
Speaker 1: send me money, but they share the well, they share

596
00:27:41,200 --> 00:27:43,159
Speaker 1: the savings back with me exactly. So I feel like

597
00:27:43,200 --> 00:27:46,640
Speaker 1: there's a similar effect, like a similar emotional effect going

598
00:27:46,640 --> 00:27:49,200
Speaker 1: on here with some of these different brokerages. But yeah,

599
00:27:49,280 --> 00:27:51,320
Speaker 1: this is neat. It's just not something that's super widespread.

600
00:27:51,400 --> 00:27:54,119
Speaker 1: It's not super applicable to everyone out there. And so

601
00:27:54,200 --> 00:27:57,240
Speaker 1: if you're thinking, well, where's my revenue credit, Well, there's

602
00:27:57,240 --> 00:27:59,640
Speaker 1: there's a good chance that you probably aren't entitled to one.

603
00:28:00,000 --> 00:28:01,880
Speaker 1: But for you Kevin it's cool that at least one

604
00:28:01,920 --> 00:28:05,480
Speaker 1: fund in your portfolio is offering, uh, this revenue credit.

605
00:28:05,640 --> 00:28:08,680
Speaker 1: But which fund should you be in? You're talking about

606
00:28:08,680 --> 00:28:11,840
Speaker 1: whether you should stick with the index fund, the sp

607
00:28:11,920 --> 00:28:15,080
Speaker 1: F hundred fidelity fund that you mentioned, or that target

608
00:28:15,119 --> 00:28:17,480
Speaker 1: date fund, and so which one you choose will depend

609
00:28:17,520 --> 00:28:19,960
Speaker 1: on a few things. You talk about the fact that

610
00:28:20,080 --> 00:28:23,760
Speaker 1: the fees are something like three times more. That's certainly

611
00:28:23,760 --> 00:28:28,200
Speaker 1: a big deal like that, like, that's a massive difference.

612
00:28:28,680 --> 00:28:31,680
Speaker 1: But here's the thing. Are we talking about like point

613
00:28:31,760 --> 00:28:35,240
Speaker 1: zero two percent versus point zero six percent? Or are we,

614
00:28:35,280 --> 00:28:38,080
Speaker 1: you know, talking like a point one versus point three difference?

615
00:28:38,400 --> 00:28:40,360
Speaker 1: Because at least a part of how we would make

616
00:28:40,400 --> 00:28:43,480
Speaker 1: this decision would be based on just how big of

617
00:28:43,480 --> 00:28:46,560
Speaker 1: a spread there is between the fees of the two funds,

618
00:28:46,880 --> 00:28:48,720
Speaker 1: and not just based purely on the fact that their

619
00:28:48,880 --> 00:28:52,040
Speaker 1: three x higher, right, three times higher um and so Actually,

620
00:28:52,080 --> 00:28:53,600
Speaker 1: so I got kind of crunched the numbers a little

621
00:28:53,600 --> 00:28:55,680
Speaker 1: bit here, And I think a lot of folks might say, well,

622
00:28:55,960 --> 00:28:58,240
Speaker 1: it doesn't matter from a principal standpoint, I don't want

623
00:28:58,280 --> 00:28:59,920
Speaker 1: to pay more than I have to. And I told

624
00:29:00,040 --> 00:29:02,440
Speaker 1: they get that, like, I never want to pay more

625
00:29:02,480 --> 00:29:05,600
Speaker 1: than I need to for something as well. But just

626
00:29:05,640 --> 00:29:07,360
Speaker 1: to put things in perspective a little bit. If we're

627
00:29:07,360 --> 00:29:09,840
Speaker 1: talking about say maxing out, well he's talking about four

628
00:29:09,840 --> 00:29:11,280
Speaker 1: O one K, but I run the numbers on in IRA.

629
00:29:11,560 --> 00:29:15,440
Speaker 1: It's like, over the next thirty years, Uh, if you

630
00:29:15,520 --> 00:29:18,640
Speaker 1: were to pay with one fund point zero six and

631
00:29:18,680 --> 00:29:21,360
Speaker 1: another one, you would be paying point zero two and fees.

632
00:29:21,560 --> 00:29:23,720
Speaker 1: You're only talking about a five thousand dollar difference in

633
00:29:23,760 --> 00:29:27,120
Speaker 1: the final value of that portfolio after thirty years. Yeah,

634
00:29:27,120 --> 00:29:29,640
Speaker 1: that's pretty animal, that's pretty minimal. That's a that's many.

635
00:29:29,800 --> 00:29:31,440
Speaker 1: I mean, three decades still a lot of money. Like

636
00:29:31,440 --> 00:29:32,959
Speaker 1: if someone handed me five thousand bucks right now, I'll

637
00:29:32,960 --> 00:29:34,800
Speaker 1: be pumped. I'm not gonna yeah, I'm not gonna turn

638
00:29:34,840 --> 00:29:37,720
Speaker 1: down years you're talking about. It's it's mean to skill

639
00:29:37,760 --> 00:29:39,800
Speaker 1: from that person exactly. So I don't know, I don't

640
00:29:39,800 --> 00:29:42,280
Speaker 1: know if that's helpful for you or if you're like, oh, no,

641
00:29:42,360 --> 00:29:45,040
Speaker 1: I want that. I want that five thousand dollars because

642
00:29:45,040 --> 00:29:48,240
Speaker 1: you're talking about again, five thousand dollars that that grows

643
00:29:48,680 --> 00:29:51,320
Speaker 1: and has earned over a very long pieople of time. Well,

644
00:29:51,320 --> 00:29:53,160
Speaker 1: that's and that's a really important point to make, Like

645
00:29:53,200 --> 00:29:56,200
Speaker 1: how how much of a different the spread between those

646
00:29:56,280 --> 00:29:59,320
Speaker 1: numbers between that three x you know change or difference

647
00:29:59,600 --> 00:30:02,200
Speaker 1: that's going to make a big difference. But also, you know,

648
00:30:02,680 --> 00:30:04,720
Speaker 1: we're typically talking about the opposite right where you're typically

649
00:30:04,720 --> 00:30:07,000
Speaker 1: talking about target date funds being more costly from a

650
00:30:07,240 --> 00:30:10,320
Speaker 1: fee perspective, But Kevin's in in the opposite boat here.

651
00:30:10,800 --> 00:30:12,720
Speaker 1: That's why this is kind of so rare, because often

652
00:30:12,760 --> 00:30:15,080
Speaker 1: times folks are wanting to shy away from those target

653
00:30:15,160 --> 00:30:18,040
Speaker 1: date funds because you're paying for some of that automation

654
00:30:18,120 --> 00:30:20,360
Speaker 1: that's built into those targeted funds. Yeah, and I think

655
00:30:20,480 --> 00:30:22,000
Speaker 1: there are a couple other things that Kevin is gonna

656
00:30:22,000 --> 00:30:26,240
Speaker 1: want to consider besides just the fee, right, because if

657
00:30:26,480 --> 00:30:28,120
Speaker 1: if fees were the only thing that drove us, we

658
00:30:28,200 --> 00:30:31,160
Speaker 1: might choose funds that weren't the best for us. Typically

659
00:30:31,160 --> 00:30:33,360
Speaker 1: index funds are the cheapest, but in this case they're not.

660
00:30:33,680 --> 00:30:37,520
Speaker 1: And so it's it's just interesting to note that fees

661
00:30:37,600 --> 00:30:40,880
Speaker 1: are one helpful decision maker, but they shouldn't make the

662
00:30:40,880 --> 00:30:43,200
Speaker 1: whole decision. Another part should come down to how hands

663
00:30:43,240 --> 00:30:45,200
Speaker 1: on or hands off you want to be right, because

664
00:30:45,480 --> 00:30:47,000
Speaker 1: at some point in your life you're likely going to

665
00:30:47,040 --> 00:30:49,680
Speaker 1: want to dial back your risk exposure and target date

666
00:30:49,720 --> 00:30:52,640
Speaker 1: funds they kind of do that automatically for you over time.

667
00:30:52,720 --> 00:30:55,960
Speaker 1: So that's that's probably the number one reason target date

668
00:30:56,000 --> 00:30:59,000
Speaker 1: funds have become so freaking popular is because people are like,

669
00:30:59,120 --> 00:31:02,240
Speaker 1: I don't want to think about this ever, it's automatic.

670
00:31:02,280 --> 00:31:04,040
Speaker 1: I want to grow my wealth, I want to invest

671
00:31:04,040 --> 00:31:06,000
Speaker 1: for my future, but I don't want to have to

672
00:31:06,040 --> 00:31:10,600
Speaker 1: know anything or do any research or like open or

673
00:31:10,720 --> 00:31:12,960
Speaker 1: turn on CNBC, like, I don't want any of the above,

674
00:31:13,160 --> 00:31:15,120
Speaker 1: And so people choose target date funds, and I think

675
00:31:15,520 --> 00:31:17,640
Speaker 1: I'm glad they exist for that reason, because there are

676
00:31:17,680 --> 00:31:19,720
Speaker 1: people who otherwise would not invest, but they do it

677
00:31:19,760 --> 00:31:22,120
Speaker 1: because target date funds exist, and I think that's great.

678
00:31:22,320 --> 00:31:24,320
Speaker 1: It's a good choice for and I don't mean this

679
00:31:24,400 --> 00:31:25,920
Speaker 1: in a pejorative way or in a bad way, but

680
00:31:26,000 --> 00:31:30,200
Speaker 1: lazy investors like, uh, it's a completely fine approach. And uh.

681
00:31:30,400 --> 00:31:32,360
Speaker 1: The thing is, though, too, that not all target date

682
00:31:32,520 --> 00:31:36,360
Speaker 1: fund options are created equal. Kevin's has a lower expense ratio,

683
00:31:36,400 --> 00:31:38,440
Speaker 1: but that's just not the case for most people. And

684
00:31:38,480 --> 00:31:41,080
Speaker 1: typically when we talk about good target date funds, we're

685
00:31:41,080 --> 00:31:43,440
Speaker 1: talking about the ones from low cost companies like Vanguard

686
00:31:43,440 --> 00:31:46,600
Speaker 1: Fidelity and Schwap that's right, man. Yes, So how involved

687
00:31:46,640 --> 00:31:48,840
Speaker 1: an investor might want to be when it comes to

688
00:31:48,880 --> 00:31:51,560
Speaker 1: their investments is something they want to keep in mind

689
00:31:51,600 --> 00:31:55,200
Speaker 1: in addition to the fees that those funds maybe levying

690
00:31:55,400 --> 00:31:59,080
Speaker 1: upon the investor, but performance that's a whole other factor

691
00:31:59,120 --> 00:32:02,160
Speaker 1: as well, because it's important to mention that returns over

692
00:32:02,200 --> 00:32:04,960
Speaker 1: the decades are likely going to be slightly higher in

693
00:32:05,000 --> 00:32:08,520
Speaker 1: that index fund as well, not necessarily by a ton uh.

694
00:32:08,560 --> 00:32:10,320
Speaker 1: And that's you know, target date funds. They have a

695
00:32:10,360 --> 00:32:13,080
Speaker 1: higher bond exposure, and this actually means that they're likely

696
00:32:13,120 --> 00:32:16,720
Speaker 1: to under underperformed the overall stock market over a longer timeline.

697
00:32:17,000 --> 00:32:18,880
Speaker 1: But another major difference is that you'll own quite a

698
00:32:18,920 --> 00:32:22,400
Speaker 1: bit more international stocks and bonds as well. Certainly you

699
00:32:22,440 --> 00:32:25,360
Speaker 1: have some international exposure with the sp F undered, but

700
00:32:25,360 --> 00:32:27,720
Speaker 1: we're talking about a good bit more with target date

701
00:32:27,720 --> 00:32:30,400
Speaker 1: funds UH. And so when you look at the returns

702
00:32:30,440 --> 00:32:33,200
Speaker 1: over the past five years, the SMP five undered has

703
00:32:33,240 --> 00:32:36,840
Speaker 1: beaten funds um like, say like the Vanguard twenties sixty

704
00:32:37,000 --> 00:32:40,800
Speaker 1: target date fund quite handily. And a huge part of

705
00:32:40,840 --> 00:32:44,320
Speaker 1: the reason for that is the underperformance of international equities.

706
00:32:44,680 --> 00:32:47,160
Speaker 1: And so we're not trying to make any predictions here right,

707
00:32:47,200 --> 00:32:49,120
Speaker 1: like will that continue to be the case? It is

708
00:32:49,200 --> 00:32:52,400
Speaker 1: hard to say. It's difficult to predict what is going

709
00:32:52,480 --> 00:32:54,959
Speaker 1: to happen out there in the world. Joel, if you're

710
00:32:55,000 --> 00:32:57,640
Speaker 1: able to, Matt, let me know, because I will follow

711
00:32:57,680 --> 00:32:59,760
Speaker 1: you anywhere. Jim Cramer and I we are on a

712
00:32:59,800 --> 00:33:02,320
Speaker 1: miss And to make all the predictions. There's actually like

713
00:33:02,320 --> 00:33:05,080
Speaker 1: a Twitter account. I think that's like telling people what

714
00:33:05,120 --> 00:33:07,880
Speaker 1: to do to do the opposite thing of what it's

715
00:33:08,240 --> 00:33:12,200
Speaker 1: it's short framer or whatever. Yeah, exactly. Uh So, you

716
00:33:12,240 --> 00:33:13,960
Speaker 1: know a big part of your decision should come down

717
00:33:14,000 --> 00:33:16,440
Speaker 1: to what sort of international exposure that you want to

718
00:33:16,480 --> 00:33:19,000
Speaker 1: have moving forward as well. But Kevin, I think another

719
00:33:19,040 --> 00:33:21,600
Speaker 1: part two is like if you're thinking about whether to

720
00:33:22,280 --> 00:33:23,880
Speaker 1: move back, you know, if you if you want to

721
00:33:23,880 --> 00:33:26,480
Speaker 1: switch back to the fund that you were holding, certainly

722
00:33:26,480 --> 00:33:28,960
Speaker 1: you want to keep performance in mind, but just how

723
00:33:29,000 --> 00:33:31,000
Speaker 1: easy it is to do as well? And you're talking

724
00:33:31,000 --> 00:33:33,200
Speaker 1: about you know, buying and selling these e t s

725
00:33:33,320 --> 00:33:36,360
Speaker 1: or funds within your foe owen K. That sounds really

726
00:33:36,400 --> 00:33:38,120
Speaker 1: easy to do. It's not like you're having to open

727
00:33:38,200 --> 00:33:40,480
Speaker 1: up an entirely new accounts and it's not creating a

728
00:33:40,520 --> 00:33:43,680
Speaker 1: tax consequence, unlike doing that in a brokerage exactly, which

729
00:33:43,720 --> 00:33:45,640
Speaker 1: is why we're totally okay with you making these switches

730
00:33:45,800 --> 00:33:49,520
Speaker 1: within attacks deferred account like this. But you know, honestly,

731
00:33:49,520 --> 00:33:51,200
Speaker 1: this has got me thinking back to like I gave

732
00:33:51,240 --> 00:33:53,200
Speaker 1: a little example about about the five thousand dollars over

733
00:33:53,320 --> 00:33:58,080
Speaker 1: thirty years, and now I'm starting to like, I'm thinking

734
00:33:58,080 --> 00:33:59,680
Speaker 1: to myself, well, if there's a change I can make

735
00:33:59,760 --> 00:34:01,400
Speaker 1: right now out and that would give me five thousand

736
00:34:01,400 --> 00:34:04,160
Speaker 1: more dollars even in thirty years, I think I would

737
00:34:04,160 --> 00:34:05,600
Speaker 1: do that. I think I'll go ahead and make that,

738
00:34:05,800 --> 00:34:07,120
Speaker 1: make that switch. And so I think some of it

739
00:34:07,160 --> 00:34:10,000
Speaker 1: comes down to you, as an individual, how organized you

740
00:34:10,000 --> 00:34:12,680
Speaker 1: can be. If you're someone who, like you were saying,

741
00:34:12,719 --> 00:34:15,319
Speaker 1: with hands off versus hands on approach, Joel. If you're

742
00:34:15,320 --> 00:34:16,800
Speaker 1: somebody who and you don't want to think about this,

743
00:34:16,880 --> 00:34:18,600
Speaker 1: you don't want to mess with it, maybe just keep

744
00:34:18,640 --> 00:34:21,279
Speaker 1: the SMP off, but then moving forward, continue to buy

745
00:34:21,400 --> 00:34:23,600
Speaker 1: the target date fund. Uh. And when it comes to

746
00:34:23,920 --> 00:34:28,200
Speaker 1: even more serious moves, like I'm thinking about adding money

747
00:34:28,239 --> 00:34:31,880
Speaker 1: to an i roth Ira over on robin Hood, but

748
00:34:31,960 --> 00:34:34,879
Speaker 1: that would mean keeping up with another account. But I'm

749
00:34:34,880 --> 00:34:39,080
Speaker 1: also very organized and I would feel completely okay with

750
00:34:39,120 --> 00:34:41,239
Speaker 1: having another log and having another count to check on

751
00:34:41,480 --> 00:34:44,080
Speaker 1: because they got that that one percent match, and I

752
00:34:44,080 --> 00:34:46,160
Speaker 1: think the returns are something or there's something similar. It's

753
00:34:46,160 --> 00:34:47,920
Speaker 1: not huge for them to be able to provide that

754
00:34:47,960 --> 00:34:49,960
Speaker 1: one percent match. But if in thirty years that means

755
00:34:49,960 --> 00:34:51,960
Speaker 1: I can have an extra five thousand dollars, why wouldn't

756
00:34:51,960 --> 00:34:54,359
Speaker 1: I go ahead and be funneling that money over there? Yeah? Yeah,

757
00:34:54,360 --> 00:34:55,520
Speaker 1: I mean I think kind of comes down to the

758
00:34:55,520 --> 00:34:58,040
Speaker 1: individual and what they're willing to to sign up for. Yeah, exactly.

759
00:34:58,040 --> 00:34:59,359
Speaker 1: So I think you need to think about the fees,

760
00:34:59,400 --> 00:35:01,080
Speaker 1: which you need to think about more than just the fees.

761
00:35:01,080 --> 00:35:03,480
Speaker 1: You need to think about your own propensity right to

762
00:35:03,600 --> 00:35:05,640
Speaker 1: keep up with the investments that you're making. It sounds

763
00:35:05,640 --> 00:35:08,080
Speaker 1: like Kevin's on the wall, so he might be willing

764
00:35:08,080 --> 00:35:10,680
Speaker 1: to change his asset allocation as his risk tolerance changes,

765
00:35:10,960 --> 00:35:13,960
Speaker 1: which makes me think that index funds might suit him better.

766
00:35:14,160 --> 00:35:16,640
Speaker 1: But it's also important to think about potential return over

767
00:35:16,680 --> 00:35:19,880
Speaker 1: the decades, and so fees are important, but potential for

768
00:35:20,040 --> 00:35:23,560
Speaker 1: higher returns is important to think about too. So we're

769
00:35:23,760 --> 00:35:26,640
Speaker 1: funds of both approaches for different different folks, right, different

770
00:35:26,640 --> 00:35:29,800
Speaker 1: strokes funds are awesome. Yep, the SMP if I fundered,

771
00:35:29,880 --> 00:35:31,839
Speaker 1: that's my favorite. I love it. Yeah, And the great

772
00:35:31,840 --> 00:35:33,120
Speaker 1: thing is part I mean part of the reason we

773
00:35:33,200 --> 00:35:35,839
Speaker 1: like both is because neither of them are terribly complicated.

774
00:35:36,160 --> 00:35:38,480
Speaker 1: They're both great options. And so yeah, think about all

775
00:35:38,480 --> 00:35:41,440
Speaker 1: those things plus your own goals. What kind of diversification

776
00:35:41,600 --> 00:35:44,360
Speaker 1: you want to have with your investments and the results

777
00:35:44,360 --> 00:35:46,040
Speaker 1: are of course going to be different over time. But

778
00:35:46,440 --> 00:35:50,320
Speaker 1: how much and to what degree is really hard to predict.

779
00:35:50,880 --> 00:35:52,960
Speaker 1: We ain't gonna try because we don't we don't have

780
00:35:52,960 --> 00:35:55,960
Speaker 1: any clue. But Kevin, I think this is not a

781
00:35:56,000 --> 00:35:59,359
Speaker 1: bad condundrum to be in. And really, uh, either way

782
00:35:59,360 --> 00:36:01,560
Speaker 1: you go, you're not You're not screwing up, like you

783
00:36:01,560 --> 00:36:04,560
Speaker 1: can't screw it up. You can just you know, you're

784
00:36:04,600 --> 00:36:06,640
Speaker 1: just making the best choice you can based on your

785
00:36:06,640 --> 00:36:10,759
Speaker 1: own specific situation. Exactly, you're optimizing it, yes, exactly. All right, Matt,

786
00:36:10,760 --> 00:36:14,200
Speaker 1: We've got more questions to get to, including one about like, yeah,

787
00:36:14,280 --> 00:36:16,759
Speaker 1: some tax changes and how that impacts people who use

788
00:36:17,239 --> 00:36:20,400
Speaker 1: cash app venmo stuff like that. We'll get to a

789
00:36:20,400 --> 00:36:32,000
Speaker 1: listener question on that and more right after this. All right,

790
00:36:32,040 --> 00:36:34,000
Speaker 1: we are back. We've got a couple more questions to

791
00:36:34,040 --> 00:36:36,520
Speaker 1: get to Joel and our next one here is from

792
00:36:36,520 --> 00:36:39,279
Speaker 1: a mother and she is wondering if I bonds are

793
00:36:39,600 --> 00:36:42,120
Speaker 1: still the way to go. Hi, Matt and Joel. My

794
00:36:42,200 --> 00:36:46,480
Speaker 1: name is Amanda and I'm from Knoxville, Tennessee. My son

795
00:36:46,640 --> 00:36:49,520
Speaker 1: just turned one and I've really been struggling with what

796
00:36:49,680 --> 00:36:52,680
Speaker 1: to do with his money. I started a U T

797
00:36:52,840 --> 00:36:55,440
Speaker 1: M A account for him, but then ended up buying

798
00:36:55,560 --> 00:36:58,879
Speaker 1: I bonds summit the temper cent and summit the six

799
00:36:58,880 --> 00:37:01,920
Speaker 1: and a half percent right instead of putting it in

800
00:37:02,040 --> 00:37:05,960
Speaker 1: that account. Do you have any guidance on if I

801
00:37:05,960 --> 00:37:08,800
Speaker 1: should continue to buy I bonds or if I should

802
00:37:08,880 --> 00:37:12,120
Speaker 1: only do that at a certain rate of return threshold.

803
00:37:12,719 --> 00:37:15,360
Speaker 1: As a side note, I didn't start a five twenty

804
00:37:15,480 --> 00:37:20,120
Speaker 1: nine because my family historically spends sometime in the military

805
00:37:20,200 --> 00:37:23,279
Speaker 1: where they have access to the g I bill. I'm

806
00:37:23,320 --> 00:37:26,520
Speaker 1: concerned if he follows that path it would be mute

807
00:37:26,520 --> 00:37:30,000
Speaker 1: point to have a five twenty nine. Any input on

808
00:37:30,080 --> 00:37:34,719
Speaker 1: my financial planning for him is much appreciated. I was

809
00:37:34,800 --> 00:37:38,720
Speaker 1: also wondering if you had any recommendations for high yield

810
00:37:38,800 --> 00:37:43,720
Speaker 1: savings accounts. Thanks guys, all right, Amanda, good question. Thanks

811
00:37:43,719 --> 00:37:46,520
Speaker 1: for yeah, thanks for submitting it. And I bonds have

812
00:37:46,760 --> 00:37:49,879
Speaker 1: of course been a great strategy for excess savings for

813
00:37:49,920 --> 00:37:53,600
Speaker 1: a while now, Matt, we've been singing the Ivan praise

814
00:37:53,680 --> 00:37:56,120
Speaker 1: tune over here for like, I don't know, over a

815
00:37:56,200 --> 00:38:00,000
Speaker 1: year now. Yeah. Yeah, And even as the rates dip

816
00:38:00,040 --> 00:38:03,920
Speaker 1: below seven percent on November one, I bonds are still

817
00:38:03,960 --> 00:38:05,560
Speaker 1: a great choice for lots of folks who want to

818
00:38:05,560 --> 00:38:08,520
Speaker 1: earn better returns on that money. It's allocated for more

819
00:38:08,760 --> 00:38:11,200
Speaker 1: medium term use. That's what I bonds are for its

820
00:38:11,320 --> 00:38:14,359
Speaker 1: medium term savings. And it's likely that your one year

821
00:38:14,400 --> 00:38:16,120
Speaker 1: old isn't gonna need this money anytime soon. I don't

822
00:38:16,120 --> 00:38:18,360
Speaker 1: think he's gonna be buying a house or a car

823
00:38:18,480 --> 00:38:21,160
Speaker 1: at some sort of major expense. But so in that case,

824
00:38:21,200 --> 00:38:23,800
Speaker 1: we'd say that you could be investing it on his behalf.

825
00:38:24,200 --> 00:38:27,680
Speaker 1: But investing for minors without earned income comes with other

826
00:38:27,719 --> 00:38:30,520
Speaker 1: potential downside. So it sure seems like I bonds are

827
00:38:30,640 --> 00:38:32,840
Speaker 1: really good choice for with some of this money for

828
00:38:32,880 --> 00:38:35,359
Speaker 1: the time being, right, But for how long? That's what

829
00:38:35,640 --> 00:38:37,520
Speaker 1: That's what a man wants to know, and she wants

830
00:38:37,520 --> 00:38:39,439
Speaker 1: to know she should be salking more money away into

831
00:38:39,520 --> 00:38:42,719
Speaker 1: I bonds on her son's behalf. And so it's hard

832
00:38:42,719 --> 00:38:46,640
Speaker 1: to say, right because before recently, before inflation really ticked up,

833
00:38:46,640 --> 00:38:50,279
Speaker 1: I bonds were incredibly lame for years. There's a reason

834
00:38:50,320 --> 00:38:52,000
Speaker 1: you didn't hear about them, and then then no money

835
00:38:52,040 --> 00:38:54,680
Speaker 1: was influence was flowing, your no reason to talk about

836
00:38:54,760 --> 00:38:57,560
Speaker 1: for like a decade plus. But obviously a nasty battle

837
00:38:57,560 --> 00:39:00,120
Speaker 1: of inflation is what made them relevant again for the

838
00:39:00,160 --> 00:39:02,960
Speaker 1: first time in our lifetime. And you know, if inflation

839
00:39:03,000 --> 00:39:07,120
Speaker 1: cools significantly, if the fixed rate portion of I bonds

840
00:39:07,160 --> 00:39:10,000
Speaker 1: remains low, then there's a good shot that before too long,

841
00:39:10,480 --> 00:39:13,920
Speaker 1: you know, they won't be a goodbye anymore. But because

842
00:39:14,040 --> 00:39:16,040
Speaker 1: I bonds are made up of that that fixed rate

843
00:39:16,080 --> 00:39:19,359
Speaker 1: combined with the rate of inflation, the answer to how

844
00:39:19,400 --> 00:39:22,120
Speaker 1: long I bonds will remain a good deal it's impossible

845
00:39:22,160 --> 00:39:24,000
Speaker 1: to predict. It's sort of like should I go with

846
00:39:24,120 --> 00:39:26,200
Speaker 1: the smpfle Utter Index or should I go to the

847
00:39:26,200 --> 00:39:30,680
Speaker 1: target date fund. Well international stocks and bonds outperformed domestic

848
00:39:31,120 --> 00:39:33,000
Speaker 1: it's tough to tell. Yeah, well, and I feel like

849
00:39:33,640 --> 00:39:35,440
Speaker 1: that that's we always want to be honest with listeners

850
00:39:35,440 --> 00:39:36,959
Speaker 1: about that stuff, because there are a lot of people

851
00:39:36,960 --> 00:39:39,239
Speaker 1: out there who do try to make predictions and they

852
00:39:39,280 --> 00:39:42,959
Speaker 1: don't that they're looking through like an imperfect crystal ball,

853
00:39:43,160 --> 00:39:45,719
Speaker 1: a massively imperfect crystal ball. And we just always want

854
00:39:45,760 --> 00:39:47,440
Speaker 1: to be honest and say, like, we can't predict these things.

855
00:39:47,719 --> 00:39:50,400
Speaker 1: And the people that say they can or are trying

856
00:39:50,400 --> 00:39:53,919
Speaker 1: to don't necessarily have more information at their disposal either.

857
00:39:54,280 --> 00:39:57,359
Speaker 1: They just maybe have an abnormal amount of confidence. And

858
00:39:57,440 --> 00:39:59,640
Speaker 1: so so yeah, we would say that that trying to

859
00:39:59,640 --> 00:40:02,920
Speaker 1: make some these predictions is a fool's errand and that

860
00:40:03,200 --> 00:40:05,040
Speaker 1: is something that you should stay away from anyone who

861
00:40:05,080 --> 00:40:06,959
Speaker 1: says they know what the future holds when it comes

862
00:40:06,960 --> 00:40:10,319
Speaker 1: to returns of something like the stock market. I'd also, Matt,

863
00:40:10,320 --> 00:40:13,000
Speaker 1: I'd like to know how much money Amanda's infant son

864
00:40:13,080 --> 00:40:16,560
Speaker 1: has in his name, because well, you know, I'm just

865
00:40:16,600 --> 00:40:18,720
Speaker 1: I'm curious because we are trying to answer this question,

866
00:40:18,800 --> 00:40:21,080
Speaker 1: and it would help to know exactly how much money

867
00:40:21,239 --> 00:40:23,719
Speaker 1: she's working with for him, because not because you're going

868
00:40:23,800 --> 00:40:26,120
Speaker 1: to steal it or I'm not planning on like wrenching

869
00:40:26,160 --> 00:40:28,239
Speaker 1: his money or anything like that, but it sounds like

870
00:40:28,239 --> 00:40:30,520
Speaker 1: her little guy has has more cash on hand than

871
00:40:30,680 --> 00:40:32,799
Speaker 1: let's say mine does, right, my three year old he does.

872
00:40:32,840 --> 00:40:35,240
Speaker 1: He's not rolling in the dough. But it's also important

873
00:40:35,280 --> 00:40:37,800
Speaker 1: to note that you can't buy more than ten thousand

874
00:40:37,840 --> 00:40:39,720
Speaker 1: dollars with the I bonds in a given your per person.

875
00:40:39,800 --> 00:40:42,399
Speaker 1: So if if he does have thirty K or something

876
00:40:42,440 --> 00:40:45,319
Speaker 1: that you're trying to work with, well you you're gonna

877
00:40:45,360 --> 00:40:47,319
Speaker 1: take a minute to so call that money up. And

878
00:40:47,360 --> 00:40:50,239
Speaker 1: now that we're solidly into you're you are allowed to

879
00:40:50,280 --> 00:40:52,920
Speaker 1: drop another ten k if he's crushing it that hard, right,

880
00:40:52,960 --> 00:40:54,879
Speaker 1: If he's got that much money hanging around, you can

881
00:40:54,880 --> 00:40:57,279
Speaker 1: put a hole ten thousand dollars into I bonds. And

882
00:40:57,320 --> 00:40:59,719
Speaker 1: if there's even more money than that, and you don't

883
00:41:00,040 --> 00:41:02,200
Speaker 1: need I bonds for yourself, well you could buy them

884
00:41:02,200 --> 00:41:04,040
Speaker 1: in your name, but your mark that money for him

885
00:41:04,040 --> 00:41:07,480
Speaker 1: to allowing up to dollars to be stuck into I

886
00:41:07,560 --> 00:41:09,799
Speaker 1: bonds to work for him. And reading between the lines here,

887
00:41:10,080 --> 00:41:12,719
Speaker 1: this might be something on your mind, Amanda, but the

888
00:41:12,760 --> 00:41:16,120
Speaker 1: fact that there is some commingling of funds. But since

889
00:41:16,120 --> 00:41:19,239
Speaker 1: you're talking about your son's money, your family after all, right,

890
00:41:19,239 --> 00:41:21,279
Speaker 1: and so we we we see no reason that you

891
00:41:21,360 --> 00:41:23,640
Speaker 1: can't mix that money. As long as you stay disciplined

892
00:41:23,640 --> 00:41:25,960
Speaker 1: and keep up with it, money is fungeable after all,

893
00:41:25,960 --> 00:41:27,680
Speaker 1: and so as long as you're just trying to choose

894
00:41:27,680 --> 00:41:30,960
Speaker 1: the best vehicles for him, even if it's not necessarily

895
00:41:31,000 --> 00:41:32,960
Speaker 1: in his name, but you're trying to save it on

896
00:41:33,320 --> 00:41:36,239
Speaker 1: for his behalf, that's perfectly fine in our book. Yeah,

897
00:41:36,280 --> 00:41:38,400
Speaker 1: I totally agree. It's just a good way of streamlining

898
00:41:38,520 --> 00:41:41,720
Speaker 1: streamlining things as well. If it feels like that, there's

899
00:41:41,800 --> 00:41:43,800
Speaker 1: it's just if it's becoming too onerous, right if it

900
00:41:43,880 --> 00:41:45,560
Speaker 1: if it's becoming too much of a lift because you're

901
00:41:45,600 --> 00:41:48,000
Speaker 1: opening all these different counts in his name. I think

902
00:41:48,040 --> 00:41:50,879
Speaker 1: there's I would be very comfortable personally. Again, it comes

903
00:41:50,920 --> 00:41:53,040
Speaker 1: down that kind of how disciplined you can be and

904
00:41:53,080 --> 00:41:55,040
Speaker 1: how how well you can keep up with that money

905
00:41:55,040 --> 00:41:57,799
Speaker 1: and the interest earned. But we also love that you

906
00:41:57,800 --> 00:42:01,760
Speaker 1: aren't saving for his future college even your specific circumstances,

907
00:42:01,800 --> 00:42:03,880
Speaker 1: as you know, you're expecting him to be able to

908
00:42:03,920 --> 00:42:06,080
Speaker 1: take advantage of the g I Bill to pay for

909
00:42:06,120 --> 00:42:10,720
Speaker 1: his higher education. But given some recent like major changes

910
00:42:10,760 --> 00:42:13,520
Speaker 1: to five nine accounts that we're just signed into the

911
00:42:13,560 --> 00:42:14,960
Speaker 1: law just a couple of weeks ago at the end

912
00:42:14,960 --> 00:42:17,840
Speaker 1: of the end of the year end two saving for

913
00:42:17,920 --> 00:42:20,960
Speaker 1: kids college you just got way more interesting. And so

914
00:42:21,120 --> 00:42:23,759
Speaker 1: the the quick explanation here is that you can roll

915
00:42:24,040 --> 00:42:27,560
Speaker 1: unspent five nine funds into a roth ira a for

916
00:42:27,680 --> 00:42:30,560
Speaker 1: your kid. In reality, there's a little more to it

917
00:42:30,560 --> 00:42:33,680
Speaker 1: than that. There's some more nuance, and so we'll give

918
00:42:33,719 --> 00:42:36,680
Speaker 1: a longer explanation and break down all the savings and

919
00:42:36,719 --> 00:42:40,279
Speaker 1: retirement changes actually on this Wednesday's episode in two days.

920
00:42:40,480 --> 00:42:42,279
Speaker 1: Definitely tune in for that because there's like a lot

921
00:42:42,400 --> 00:42:44,480
Speaker 1: of nuances specific if you have to follow to use

922
00:42:44,520 --> 00:42:46,480
Speaker 1: it appropriately. But even for folks who don't want to

923
00:42:46,520 --> 00:42:49,359
Speaker 1: save for college for their kids anymore, a five nine

924
00:42:49,360 --> 00:42:52,480
Speaker 1: plan actually makes sense for for people now when otherwise

925
00:42:52,520 --> 00:42:54,680
Speaker 1: food have told him to steer clear, exactly. Yeah, And

926
00:42:54,719 --> 00:42:57,879
Speaker 1: in regards to savings accounts, Amanda, if this again, if

927
00:42:57,880 --> 00:43:00,520
Speaker 1: this is for him just you know, to to be

928
00:43:00,600 --> 00:43:03,120
Speaker 1: opened in his name, that's a toughie. The best ones

929
00:43:03,160 --> 00:43:08,200
Speaker 1: four kids for miners, they typically come from local credit unions,

930
00:43:08,400 --> 00:43:10,840
Speaker 1: and even then it's a decent rate, but you're oftentimes

931
00:43:10,880 --> 00:43:13,520
Speaker 1: limited to a certain amount of money that can earn

932
00:43:13,680 --> 00:43:16,440
Speaker 1: that higher rate. A few thousand bucks qualify for the

933
00:43:16,480 --> 00:43:19,560
Speaker 1: higher interest rate that credit unions typically offer, exactly. And

934
00:43:19,560 --> 00:43:21,440
Speaker 1: it's again it's it's kind of something like she's got

935
00:43:21,440 --> 00:43:23,680
Speaker 1: maybe more money set aside than that for him. But

936
00:43:23,719 --> 00:43:26,200
Speaker 1: if this is an account for you again, if you're

937
00:43:26,200 --> 00:43:28,520
Speaker 1: gonna slide some of that money into your name and

938
00:43:28,600 --> 00:43:30,560
Speaker 1: track it that way, well, you know, we mentioned a

939
00:43:30,560 --> 00:43:34,480
Speaker 1: few online banks pretty consistently ally Marcus C I T Actually,

940
00:43:34,480 --> 00:43:36,799
Speaker 1: I think they just up their rates like north of

941
00:43:36,840 --> 00:43:40,600
Speaker 1: four percent now, which is insane. Discover as well, but

942
00:43:40,640 --> 00:43:44,040
Speaker 1: they all offer some of the highest rates. They consistently

943
00:43:44,040 --> 00:43:47,120
Speaker 1: pay the highest rates of interest as well as offering

944
00:43:47,160 --> 00:43:49,600
Speaker 1: some solid customer service, and so we would recommend you

945
00:43:49,840 --> 00:43:52,239
Speaker 1: check them out as well. Throw Capital One there as well.

946
00:43:52,640 --> 00:43:54,279
Speaker 1: We mentioned them earlier like that. There are a lot

947
00:43:54,280 --> 00:43:56,640
Speaker 1: of good online banks, and so if you're looking one

948
00:43:56,680 --> 00:43:58,279
Speaker 1: for one for yourself, I would look at all the

949
00:43:58,320 --> 00:44:01,040
Speaker 1: above and see which one best. It's the parameters for

950
00:44:01,080 --> 00:44:03,440
Speaker 1: what you're looking for. But you can't go wrong with

951
00:44:03,480 --> 00:44:06,279
Speaker 1: any of mine, saying those are all great. Yeah, So Matt,

952
00:44:06,360 --> 00:44:09,000
Speaker 1: let's get to you our our last question this episode,

953
00:44:09,000 --> 00:44:12,399
Speaker 1: and this one is about some changes to tax law

954
00:44:12,440 --> 00:44:15,400
Speaker 1: and how it's gonna impact likely more than just this

955
00:44:15,440 --> 00:44:19,040
Speaker 1: listener who's asking this question. Hey, this is Lucas from Minnesota.

956
00:44:19,120 --> 00:44:20,920
Speaker 1: I'm about a month behind on my podcast, but I'm

957
00:44:20,960 --> 00:44:23,200
Speaker 1: hoping at some point I can have some help answering

958
00:44:23,200 --> 00:44:27,320
Speaker 1: this question. eBay recently updated a lot of places, I

959
00:44:27,360 --> 00:44:31,080
Speaker 1: believe updated the amount of money that is made on

960
00:44:31,160 --> 00:44:33,040
Speaker 1: these apps before they reported to the I r S

961
00:44:33,080 --> 00:44:37,840
Speaker 1: from twenty to six. I believe my question is specifically

962
00:44:37,880 --> 00:44:40,920
Speaker 1: related to hobbies. I buy and sell sports cards, um

963
00:44:41,000 --> 00:44:43,240
Speaker 1: not with the intent of making a profit, but simply

964
00:44:43,520 --> 00:44:46,960
Speaker 1: as a hobby. I'll often buy one D two hundred

965
00:44:46,960 --> 00:44:49,279
Speaker 1: dollar boxes of cards. I'll keep a few, and I'll

966
00:44:49,320 --> 00:44:52,000
Speaker 1: sell the rest just to recoup some of my investment.

967
00:44:53,160 --> 00:44:55,919
Speaker 1: Rarely am I making a profit, but in eBay's eyes,

968
00:44:55,960 --> 00:44:58,360
Speaker 1: I am so. I'm wondering how this will impact my taxes,

969
00:44:59,040 --> 00:45:01,600
Speaker 1: our taxes. Calculate it on a purse sale basis or

970
00:45:01,760 --> 00:45:05,400
Speaker 1: overall gain and loss, if that makes sense. Do I

971
00:45:05,440 --> 00:45:08,680
Speaker 1: need to track every single individual sale or how it

972
00:45:08,719 --> 00:45:10,319
Speaker 1: would be the best way to go about this where

973
00:45:10,360 --> 00:45:14,560
Speaker 1: I'm not paying taxes on money that's not really net profit.

974
00:45:15,320 --> 00:45:19,880
Speaker 1: Thanks alright, the years kicking off. It's a busy Timm year, Lucas.

975
00:45:20,040 --> 00:45:22,719
Speaker 1: There are lots of great podcasts to listen to these days,

976
00:45:22,719 --> 00:45:25,399
Speaker 1: but we appreciate you listening. Uh, to how the Money

977
00:45:25,400 --> 00:45:28,839
Speaker 1: and for your question for us favorite podcast, Matt Well,

978
00:45:28,880 --> 00:45:31,359
Speaker 1: how the Money is always there at the time, it's

979
00:45:31,360 --> 00:45:32,880
Speaker 1: at the top of my list. I will say fre

980
00:45:32,880 --> 00:45:36,320
Speaker 1: Economics just had a great series on Adam Smith economists

981
00:45:36,400 --> 00:45:39,480
Speaker 1: Scottish economists from that's a nor doubt, no doubt on

982
00:45:39,560 --> 00:45:43,760
Speaker 1: some of the historical figures that have had a massive

983
00:45:43,800 --> 00:45:45,520
Speaker 1: impact on on how it is that we v money

984
00:45:45,520 --> 00:45:47,799
Speaker 1: in the World's definitely that three part series is worth

985
00:45:47,800 --> 00:45:50,719
Speaker 1: listening to for sure. Yes, But Lucas the that new

986
00:45:50,920 --> 00:45:55,040
Speaker 1: ten K requirement, it was set to roll out this year,

987
00:45:55,480 --> 00:45:59,040
Speaker 1: but right at the last minute, not unlike the changes

988
00:45:59,160 --> 00:46:03,200
Speaker 1: that were signed into law regarding you know, retirement and

989
00:46:03,360 --> 00:46:06,279
Speaker 1: savings accounts. Similarly, the I R S said of the

990
00:46:06,360 --> 00:46:08,640
Speaker 1: last minute that they were going to delay that by

991
00:46:08,680 --> 00:46:11,879
Speaker 1: a year. And so while there's no requirement for those

992
00:46:11,920 --> 00:46:14,400
Speaker 1: new to N nine K forms to go out, there

993
00:46:14,440 --> 00:46:16,640
Speaker 1: still a chance that you might end up with one

994
00:46:16,680 --> 00:46:18,839
Speaker 1: of those in your mailbox. And so here I mean

995
00:46:18,880 --> 00:46:23,080
Speaker 1: the way it works is that places like eBay, venmo, uh, Airbnb,

996
00:46:23,280 --> 00:46:26,440
Speaker 1: et c. Even the cash app, they they've always sent

997
00:46:26,480 --> 00:46:30,720
Speaker 1: out K forms to folks if they generated over twenty

998
00:46:30,719 --> 00:46:33,759
Speaker 1: tho dollars, but that is going to transition to just

999
00:46:33,960 --> 00:46:36,279
Speaker 1: six hundred dollars by the start of next year, by

1000
00:46:36,280 --> 00:46:39,839
Speaker 1: the start exactly it was supposed to be three, but

1001
00:46:39,960 --> 00:46:43,520
Speaker 1: no longer exactly essially for a lot so many people relief. Yeah, well,

1002
00:46:43,920 --> 00:46:46,319
Speaker 1: there's gonna be a lot of confusion because maybe it

1003
00:46:46,320 --> 00:46:49,279
Speaker 1: wasn't talked about enough. But they're making twenty three a

1004
00:46:49,360 --> 00:46:53,319
Speaker 1: transition year as businesses are are able to ramp up

1005
00:46:53,560 --> 00:46:56,399
Speaker 1: their ability to get this t n K forms out.

1006
00:46:56,760 --> 00:46:58,080
Speaker 1: But to be honest, you know, there's always been a

1007
00:46:58,120 --> 00:47:00,719
Speaker 1: onus on the individual in order to claim and to

1008
00:47:00,800 --> 00:47:04,600
Speaker 1: report any income that's north of six And so basically,

1009
00:47:04,880 --> 00:47:07,640
Speaker 1: if you're selling things on eBay and you are generating

1010
00:47:07,960 --> 00:47:11,120
Speaker 1: like meaningful revenue, this is something that you might have

1011
00:47:11,160 --> 00:47:13,360
Speaker 1: been able to you know, squeak by with in the past,

1012
00:47:13,400 --> 00:47:15,680
Speaker 1: but it's unlikely that you're gonna be able be able

1013
00:47:15,719 --> 00:47:18,200
Speaker 1: to do that moving forward. Yeah, Matt, So, so, like

1014
00:47:18,640 --> 00:47:20,320
Speaker 1: you know, I said a minute ago that this is

1015
00:47:20,360 --> 00:47:22,000
Speaker 1: gonna be a relief for a lot of folks who

1016
00:47:22,320 --> 00:47:24,120
Speaker 1: this is going to kind of blindside a lot of people,

1017
00:47:24,160 --> 00:47:25,600
Speaker 1: like what is this ten n nine K and why

1018
00:47:25,600 --> 00:47:28,040
Speaker 1: did I get it? Just have maybe having sold just

1019
00:47:28,080 --> 00:47:30,879
Speaker 1: a few things online or having transferred some payments back

1020
00:47:30,920 --> 00:47:33,040
Speaker 1: and forth on one of these payment platforms. You get

1021
00:47:33,080 --> 00:47:34,680
Speaker 1: one of these things and you attacks on that ten

1022
00:47:35,960 --> 00:47:38,960
Speaker 1: amount that's reported, and a lot of people were just

1023
00:47:39,000 --> 00:47:41,520
Speaker 1: going to be shocked by it. And so that that

1024
00:47:41,600 --> 00:47:44,920
Speaker 1: was the reason that this this delay was implemented, and

1025
00:47:44,960 --> 00:47:48,160
Speaker 1: it might just be buying time to to change the

1026
00:47:48,239 --> 00:47:52,600
Speaker 1: reporting thresholds. Uh for ten n We'll see, we'll see

1027
00:47:52,640 --> 00:47:55,080
Speaker 1: if you know, they come to a different agreement this year,

1028
00:47:55,080 --> 00:47:58,520
Speaker 1: and obviously report if that happens. But you know, given

1029
00:47:58,560 --> 00:48:01,240
Speaker 1: the way that Luke has discussed his situe uation even

1030
00:48:01,400 --> 00:48:04,240
Speaker 1: in four he's likely not to have a massively increased

1031
00:48:04,280 --> 00:48:07,400
Speaker 1: tax bill right based on receiving a ten K. And

1032
00:48:07,440 --> 00:48:08,640
Speaker 1: we would just say you might want to get in

1033
00:48:08,640 --> 00:48:10,960
Speaker 1: the habit though, of doing some more record keeping, Lucas.

1034
00:48:11,320 --> 00:48:13,919
Speaker 1: That's for a couple of reasons. First off, you might

1035
00:48:14,000 --> 00:48:16,040
Speaker 1: be making more than you realize, and if you have

1036
00:48:16,040 --> 00:48:18,799
Speaker 1: a talent for spotting sports cards that that are like

1037
00:48:18,840 --> 00:48:20,880
Speaker 1: diamonds in the rough, you might be able to scale

1038
00:48:20,880 --> 00:48:22,440
Speaker 1: this hobby up and you might actually be able to

1039
00:48:22,480 --> 00:48:25,600
Speaker 1: turn it into some significant side income. But secondly, Luca

1040
00:48:25,640 --> 00:48:28,960
Speaker 1: Lucas sports card. Yeah, and maybe he likes quit his

1041
00:48:29,160 --> 00:48:31,440
Speaker 1: full time job because he's able to flip cards so

1042
00:48:31,480 --> 00:48:34,239
Speaker 1: well or something like that. But secondly, like, only if

1043
00:48:34,239 --> 00:48:37,040
Speaker 1: it's an actual business, can you deduct any expenses that

1044
00:48:37,080 --> 00:48:39,640
Speaker 1: you incur? And you might have more expenses than you

1045
00:48:39,719 --> 00:48:42,520
Speaker 1: realize too with this business, who knows? Uh? And and

1046
00:48:42,560 --> 00:48:44,719
Speaker 1: not only could you deduct expenses, but you can even

1047
00:48:44,719 --> 00:48:46,400
Speaker 1: take a loss right if you happen to have a

1048
00:48:46,440 --> 00:48:49,640
Speaker 1: bad year. So uh, yeah, this these changes started in

1049
00:48:50,400 --> 00:48:52,719
Speaker 1: with the passing of the Tax Tax Cuts and Jobs Act.

1050
00:48:53,040 --> 00:48:56,120
Speaker 1: Before then, you actually did have the ability to deduct

1051
00:48:56,120 --> 00:48:59,600
Speaker 1: hobby expenses. But yeah, like, this is one of those

1052
00:48:59,600 --> 00:49:02,040
Speaker 1: things where you're gonna want to keep track of everything

1053
00:49:02,320 --> 00:49:04,719
Speaker 1: for I R. S. Reporting, but also for kind of

1054
00:49:05,040 --> 00:49:08,359
Speaker 1: knowing how well this side hustle business is actually doing

1055
00:49:08,400 --> 00:49:10,560
Speaker 1: for you totally and hopefully we hear back from Lucas

1056
00:49:10,600 --> 00:49:12,279
Speaker 1: in a year and he's like, by the way, this

1057
00:49:12,360 --> 00:49:14,440
Speaker 1: is my full time gig. Now I'm totally crushing it.

1058
00:49:14,880 --> 00:49:17,480
Speaker 1: But Lucas, like, if you have zero intention of making

1059
00:49:17,520 --> 00:49:19,600
Speaker 1: this an actual business, right, Like, if truly you are

1060
00:49:19,640 --> 00:49:21,680
Speaker 1: just doing this for fun, you don't want to spend

1061
00:49:21,719 --> 00:49:23,160
Speaker 1: any more time on it. Maybe you don't have the

1062
00:49:23,200 --> 00:49:25,719
Speaker 1: time to dedicate to it, and then don't worry about

1063
00:49:25,719 --> 00:49:27,680
Speaker 1: the record keeping, right, like, just get your your ten

1064
00:49:27,800 --> 00:49:29,920
Speaker 1: night and nine K when it comes next year, report

1065
00:49:29,960 --> 00:49:32,680
Speaker 1: that amount on your taxes as income like you normally would,

1066
00:49:33,040 --> 00:49:35,200
Speaker 1: and you'll just have to pay a little more tax

1067
00:49:35,520 --> 00:49:38,600
Speaker 1: on that income. That being said, actually, sometimes the i

1068
00:49:38,680 --> 00:49:42,359
Speaker 1: r S they don't give people the option right to

1069
00:49:42,440 --> 00:49:45,560
Speaker 1: call it hobby income versus business income. Sometimes they decide

1070
00:49:45,560 --> 00:49:48,960
Speaker 1: it for you if your hobby should be considered a business.

1071
00:49:49,400 --> 00:49:51,359
Speaker 1: And again this doesn't sound like the case for you,

1072
00:49:51,480 --> 00:49:53,080
Speaker 1: but for others out there, the i r S they

1073
00:49:53,080 --> 00:49:56,560
Speaker 1: actually have some questions to help folks to determine whether

1074
00:49:56,680 --> 00:49:58,920
Speaker 1: they have a hobby or whether they have a business,

1075
00:49:59,120 --> 00:50:00,799
Speaker 1: and we can lend to those questions in our show

1076
00:50:00,840 --> 00:50:02,880
Speaker 1: notes for this episode up on the website. But so

1077
00:50:02,960 --> 00:50:06,000
Speaker 1: much of it is this is their attempt to clarify

1078
00:50:06,200 --> 00:50:08,000
Speaker 1: because so much of it's murky, right, Like, so much

1079
00:50:08,000 --> 00:50:10,520
Speaker 1: of it comes down to intent, is what they say, uh,

1080
00:50:10,520 --> 00:50:12,960
Speaker 1: And so they're they're kind of they're providing these questions

1081
00:50:12,960 --> 00:50:15,000
Speaker 1: for you to look at and read yes or no to,

1082
00:50:15,560 --> 00:50:17,839
Speaker 1: and that is supposedly going to help help you your

1083
00:50:17,840 --> 00:50:20,799
Speaker 1: mileage may vary. And one last thing, by the way,

1084
00:50:20,800 --> 00:50:23,680
Speaker 1: as well, personal payments that you might make two friends

1085
00:50:23,719 --> 00:50:27,200
Speaker 1: or family members on these apps shouldn't be reported on

1086
00:50:27,280 --> 00:50:29,200
Speaker 1: a ten ninety nine K. And so what that means

1087
00:50:29,280 --> 00:50:31,120
Speaker 1: is that if you, you know, split a lot of dinners,

1088
00:50:31,239 --> 00:50:32,680
Speaker 1: or you know, if you pay a friend back for

1089
00:50:32,680 --> 00:50:35,440
Speaker 1: for booking a plane ticket for you, uh, and it

1090
00:50:35,480 --> 00:50:37,800
Speaker 1: does trigger a ten nine nine K, well then we

1091
00:50:37,840 --> 00:50:40,400
Speaker 1: would recommend that you reach out to that payment processor

1092
00:50:40,440 --> 00:50:42,560
Speaker 1: in order to get that corrected. That should not be

1093
00:50:43,400 --> 00:50:46,279
Speaker 1: uh income that is reported on a ten nine K.

1094
00:50:46,400 --> 00:50:48,080
Speaker 1: You do not want to have to pay taxes on

1095
00:50:48,120 --> 00:50:50,920
Speaker 1: the money when in reality they were just paying you

1096
00:50:50,920 --> 00:50:52,799
Speaker 1: back for something. And again that's why they delayed this,

1097
00:50:52,920 --> 00:50:55,319
Speaker 1: and that's why they might come up with a better

1098
00:50:55,320 --> 00:50:59,600
Speaker 1: permanent fix because it's just a weird thing with new

1099
00:50:59,600 --> 00:51:02,239
Speaker 1: payment apps and the how much we use them and

1100
00:51:02,680 --> 00:51:05,080
Speaker 1: how often we're sending money back and forth but we're

1101
00:51:05,080 --> 00:51:08,680
Speaker 1: not actually buying and selling goods. It creates like more

1102
00:51:08,760 --> 00:51:12,480
Speaker 1: of a paper trail that can impact people's taxes negatively

1103
00:51:12,880 --> 00:51:15,080
Speaker 1: when it shouldn't. And so yeah, well we'll see what

1104
00:51:15,120 --> 00:51:17,680
Speaker 1: the final outcome of this is. But at least four

1105
00:51:18,000 --> 00:51:19,839
Speaker 1: sales you made last year. They're kind of going back

1106
00:51:19,840 --> 00:51:23,440
Speaker 1: to those old reporting guidelines. You shouldn't receive at K

1107
00:51:24,000 --> 00:51:26,440
Speaker 1: for those smaller amounts only if you're doing like legitimate

1108
00:51:26,480 --> 00:51:29,080
Speaker 1: number of sales online and generating real income. That's right.

1109
00:51:29,200 --> 00:51:31,600
Speaker 1: By the way. So we were just talking about paying

1110
00:51:31,600 --> 00:51:33,360
Speaker 1: a friend back for travel. We we just booked a

1111
00:51:34,320 --> 00:51:37,040
Speaker 1: spot for us to vacation to this summer. Did you

1112
00:51:37,600 --> 00:51:39,680
Speaker 1: did you pay? Did you pay the full amount or

1113
00:51:39,680 --> 00:51:42,200
Speaker 1: did you pay like the half deposit half deposit? All right,

1114
00:51:42,239 --> 00:51:43,640
Speaker 1: how about can we put my card on the on

1115
00:51:43,680 --> 00:51:45,800
Speaker 1: the next one. I gotta get that cash back and

1116
00:51:45,920 --> 00:51:48,080
Speaker 1: I gotta hit that spend threshold for that Southwest card

1117
00:51:48,280 --> 00:51:50,719
Speaker 1: so that can fly for free. There you go, alright,

1118
00:51:51,120 --> 00:51:53,400
Speaker 1: it's all, It's all you buddy, Yeah nice. Yeah, this

1119
00:51:53,400 --> 00:51:55,000
Speaker 1: way we don't have to worry about any of those

1120
00:51:55,000 --> 00:51:57,520
Speaker 1: transactions on on cash app. And though we just even

1121
00:51:57,520 --> 00:51:59,719
Speaker 1: though we do that constantly, yeah, like you do that,

1122
00:51:59,760 --> 00:52:02,480
Speaker 1: I mean NonStop. People know how it is when you're

1123
00:52:02,600 --> 00:52:05,400
Speaker 1: doing little stuff with friends online where your book can

1124
00:52:05,400 --> 00:52:07,439
Speaker 1: travel together whatever, you're always sending money back and forth.

1125
00:52:07,680 --> 00:52:09,200
Speaker 1: And this is this is causing a real problem, a

1126
00:52:09,200 --> 00:52:11,560
Speaker 1: little real wrench in people's taxes. So I'm glad to

1127
00:52:11,600 --> 00:52:14,000
Speaker 1: see the delay and hopefully that helps Lucas out as

1128
00:52:14,000 --> 00:52:17,760
Speaker 1: well with like his small business where hobby or however

1129
00:52:18,040 --> 00:52:20,239
Speaker 1: he's going to classify it, but it impacts a whole

1130
00:52:20,239 --> 00:52:22,040
Speaker 1: lot of other people too. So all right, let's get

1131
00:52:22,040 --> 00:52:23,560
Speaker 1: back to the beer that we had on this episode.

1132
00:52:23,560 --> 00:52:26,560
Speaker 1: This is called Wits by St. Bernardist. What were your

1133
00:52:26,600 --> 00:52:28,759
Speaker 1: thoughts on this beer? My friend? I will say that

1134
00:52:28,840 --> 00:52:31,680
Speaker 1: this thing drank like a spring or summertime beer. Man,

1135
00:52:31,840 --> 00:52:34,759
Speaker 1: like the from the first sip, it reminded me of

1136
00:52:35,120 --> 00:52:38,560
Speaker 1: roses and violets. Had like this very flowery, not in

1137
00:52:38,600 --> 00:52:41,000
Speaker 1: an overly floral kind of way, but you know, like

1138
00:52:41,040 --> 00:52:43,480
Speaker 1: the smell that roses half It's just it's like this

1139
00:52:43,520 --> 00:52:47,239
Speaker 1: subtle smell of roses. I don't know how to describe it,

1140
00:52:47,280 --> 00:52:50,919
Speaker 1: but I feel like this had that floral aspect going

1141
00:52:50,960 --> 00:52:53,959
Speaker 1: on that coupled with like that nice wheaty finish um.

1142
00:52:54,000 --> 00:52:55,800
Speaker 1: But that was, yeah, the weedy and I guess that

1143
00:52:55,880 --> 00:52:58,680
Speaker 1: was clean. I thought the yeasts this Belgian us kind

1144
00:52:58,680 --> 00:53:00,959
Speaker 1: of have that floral element, but to for for whatever reason,

1145
00:53:01,000 --> 00:53:05,240
Speaker 1: I was just picturing like red and purple flowers yeah,

1146
00:53:05,280 --> 00:53:07,919
Speaker 1: I mean all right, I don't uh necessarily know if

1147
00:53:08,000 --> 00:53:09,239
Speaker 1: I got the same thing, but I will say it

1148
00:53:09,239 --> 00:53:12,200
Speaker 1: was refreshing and clean and just a delicious beer to drink.

1149
00:53:12,239 --> 00:53:14,280
Speaker 1: And I was kind of expecting actually some more Belgian

1150
00:53:14,360 --> 00:53:17,160
Speaker 1: spices because typically like a Belgian wheat is going to

1151
00:53:17,239 --> 00:53:19,600
Speaker 1: have like coriander or allspice or something, it's like some

1152
00:53:19,719 --> 00:53:21,640
Speaker 1: other funky flavors in expecting it to be more like

1153
00:53:21,680 --> 00:53:25,680
Speaker 1: a tripell. Yeah, like I'm orientder how reserved this one

1154
00:53:25,800 --> 00:53:27,480
Speaker 1: was and how it was all about kind of the

1155
00:53:27,480 --> 00:53:31,760
Speaker 1: bass beer notes coming through. Yeah, it was well done

1156
00:53:32,000 --> 00:53:34,520
Speaker 1: and it was definitely a good like spring beer. Almost

1157
00:53:34,520 --> 00:53:37,040
Speaker 1: could be like a beach beer too, Like no one's

1158
00:53:37,040 --> 00:53:39,240
Speaker 1: going to the beach in January or at least anywhere

1159
00:53:39,280 --> 00:53:41,480
Speaker 1: around here that I know of, but uh, yeah, when

1160
00:53:41,480 --> 00:53:42,759
Speaker 1: we do go to the beach, this might be one

1161
00:53:42,920 --> 00:53:45,840
Speaker 1: I'll take. Although any time you go to the beach,

1162
00:53:46,080 --> 00:53:48,480
Speaker 1: like I swear, anytime you take any beer to the

1163
00:53:48,480 --> 00:53:50,600
Speaker 1: beach that has any type of flavor, it just feels

1164
00:53:50,600 --> 00:53:53,120
Speaker 1: like too much, right Like, like typically on the beach,

1165
00:53:53,160 --> 00:53:57,120
Speaker 1: you just want something that virtually is flavor less. Beer

1166
00:53:57,200 --> 00:54:00,200
Speaker 1: is always always Sarber is always they're fantastic. It sure,

1167
00:54:00,320 --> 00:54:02,839
Speaker 1: it gets me, just gets me excited about things warming up.

1168
00:54:02,840 --> 00:54:04,719
Speaker 1: I mean, I don't know. We shouldn't be looking that

1169
00:54:04,760 --> 00:54:07,840
Speaker 1: far forward. Let's enjoy the weather and the season that

1170
00:54:07,880 --> 00:54:10,000
Speaker 1: we have now, but it is fun to think about

1171
00:54:10,360 --> 00:54:13,200
Speaker 1: what the summer might hold for us, whether it comes

1172
00:54:13,239 --> 00:54:15,920
Speaker 1: to where we are or what we're drinking. But that's

1173
00:54:15,920 --> 00:54:18,480
Speaker 1: gonna be it for this episode. Like you mentioned, definitely

1174
00:54:18,800 --> 00:54:21,000
Speaker 1: look for that episode to drop on Wednesday. We're going

1175
00:54:21,040 --> 00:54:24,160
Speaker 1: to cover a lot of the recent news regarding the

1176
00:54:24,320 --> 00:54:27,719
Speaker 1: changes to different investments and savings accounts and how you

1177
00:54:27,760 --> 00:54:30,120
Speaker 1: can benefit from some of those changes. You're actually gonna

1178
00:54:30,160 --> 00:54:32,000
Speaker 1: be writing about it in our newsletter to Matt are

1179
00:54:32,080 --> 00:54:34,280
Speaker 1: or How the Money newsletter that comes out every single Tuesday,

1180
00:54:34,600 --> 00:54:36,080
Speaker 1: So make sure you go to How the Money dot

1181
00:54:36,080 --> 00:54:38,640
Speaker 1: com slash newsletter to sign up for that. It's free,

1182
00:54:38,800 --> 00:54:41,600
Speaker 1: full of friendly advice in your inbox every single week.

1183
00:54:41,680 --> 00:54:43,759
Speaker 1: There's lots of different ways that you can ingest this

1184
00:54:43,840 --> 00:54:46,560
Speaker 1: financial news that we are dolling up for you. But dude,

1185
00:54:46,560 --> 00:54:49,480
Speaker 1: that's gonna be it for this specific episode until next time.

1186
00:54:49,600 --> 00:55:00,120
Speaker 1: Best Friends Out, Best Friends Out, m