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

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Speaker 1: today we're discussing the beauty of the roth Ira. Roth

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Speaker 1: Ira a s. That's what we're gonna be talking about today, Joel.

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Speaker 1: We're going to discuss the benefits of roth iras, the flexibility,

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Speaker 1: and why pretty much everyone that's listening to this why

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Speaker 1: they should have a roth ira as well. Yeah, I've

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Speaker 1: got one. I wrote a song about it. That's how

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Speaker 1: much I love my roth Ira. I got that roth

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Speaker 1: ira tattoo going on now. All right, but real quick, Matt,

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Speaker 1: before we start talking about how much we love the

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Speaker 1: roth ira and the many benefits that it has, I

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Speaker 1: wanted to mention to you that I did kind of

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Speaker 1: make a sporge recently. I got some money for my

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Speaker 1: birthday at the end of February, and I knew what

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Speaker 1: I wanted. I was holding out for some bone conduction headphones. Yeah.

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Speaker 1: That sounds kind of funny. It sounds weird, so for

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Speaker 1: phone conduction. Yeah, So for folks who don't know what

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Speaker 1: bone conduction headphones are, first, I'll tell you what they are,

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Speaker 1: and then I'll tell you why I wanted them. Okay,

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Speaker 1: so they actually sit on your temples as opposed to

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Speaker 1: going inside your ear. And so the cool thing about

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Speaker 1: bone conduction headphones is that the sound travels through the

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Speaker 1: bones right there. And I don't know what bones they

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Speaker 1: are there, like three little bones inside your ear drump

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Speaker 1: that kind of like bounce around, and that's what that's

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Speaker 1: what makes sound right exactly, yep. And they're like super tiny,

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Speaker 1: like sounds a grain of brice. Yeah, So the sound

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Speaker 1: travels through the bone as opposed to through the ear canal,

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Speaker 1: and therefore, having bone conduction headphones, you can hear the

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Speaker 1: world around you really well, whereas you couldn't even if

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Speaker 1: you're wearing earbuds. So I can wear them while I'm biking, Yeah,

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Speaker 1: that was gonna say. This is I'm sure especially handy

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Speaker 1: when you're commuting to work on the bike. Exactly. I

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Speaker 1: can listen to a podcast or to some music or whatever,

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Speaker 1: but still be very aware of what's going on around me.

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Speaker 1: Obviously I'm looking right while I'm biking. But but to

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Speaker 1: be able to hear the sounds, yeah, hearing is clutch

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Speaker 1: when you're in particularly when you're on the roads. Yeah,

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Speaker 1: so bone bone conduction headphones. I found a sale on

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Speaker 1: some really good ones that are normally a hunter Bucks

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Speaker 1: and they almost never go on sales, so I got

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Speaker 1: it for sixty, so I was pretty happy about that.

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Speaker 1: And yeah, maybe we'll throw a link up because I

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Speaker 1: don't honestly, I don't think I've even never heard of

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Speaker 1: these before until you mentioned it, and I was like,

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Speaker 1: I guess it's exactly what it sounds like, bone conduction,

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Speaker 1: Like it puts the sound through your your headbones and

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Speaker 1: you get to hear stuff. Yeah, it's pretty clutch. And yeah,

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Speaker 1: they're not necessarily cheap, like I said, regularly a hundred.

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Speaker 1: I got them for sixty, but totally worth it. If

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Speaker 1: it's something that's going to allow you to actually kind

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Speaker 1: of listen to a podcast, listen to music, why you

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Speaker 1: can still be aware of the sounds around you. You

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Speaker 1: could like listen to something while you're watching your kids

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Speaker 1: or something like that. I don't know, maybe that's not

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Speaker 1: a good recommendation. These are obviously Bluetooth as well, right, yes,

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Speaker 1: like they're not Yeah, they're not picked up to your

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Speaker 1: phone yep, so they work to be a Bluetooth So

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Speaker 1: they're awesome. Well, for me, I'll say real quick, I

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Speaker 1: work from home, and typically when I'm put popping things

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Speaker 1: into my ear. I like that because if the girls

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Speaker 1: are home from school or something like that and they're

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Speaker 1: screaming in the background and I'm still working, like that

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Speaker 1: allows me to block out some of that sounds. So

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Speaker 1: I guess in my case, for those instances, it's still

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Speaker 1: good to have the old school maybe over the ear

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Speaker 1: headphones or the or the buds that actually go into

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Speaker 1: your ear. But is the audio pretty good? It's actually

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Speaker 1: pretty good. Yeah. If you turn it up too high,

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Speaker 1: there's like kind of like a buzzing effect that gets

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Speaker 1: Is that your earbones buzzing together? I think so, because

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Speaker 1: the vibrations are shaking your head. Yeah, So you don't

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Speaker 1: want it to get too intense, so you Yeah, if

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Speaker 1: you keep it on a regular, normal level, it's not

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Speaker 1: like you're getting sick base or that it's the best

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Speaker 1: audio you've ever heard in your life. It's certainly nothing

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Speaker 1: on that level. But it's for functionality's sake. They're really good.

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Speaker 1: Gets done. Yeah, I want to try them out, all right,

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Speaker 1: let it. I'll let you borrow them, okay, Matt, onto

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Speaker 1: the topic of hand. We're talking about roth ey ras,

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Speaker 1: why they rock, why they're awesome, And the thing is

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Speaker 1: man investment terms can be confusing. There are lots of

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Speaker 1: different vehicles that we can invest inside of. It's hard

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Speaker 1: to know what ones we should take advantage of. A

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Speaker 1: lot of our listeners in Americans have access to a

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Speaker 1: four oh one K. There are four seven b s

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Speaker 1: and then different kinds of our IRA s. There's traditional,

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Speaker 1: there's ross, there's set bras. But raths are one of

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Speaker 1: the most flexible retirement accounts and we're big fans of

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Speaker 1: them for so many reasons. So I'm looking forward to

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Speaker 1: kind of getting into why they're so great, helping people

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Speaker 1: think through why they should consider opening a roth Ira account.

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Speaker 1: All right, Jill. Before we launched into roth Ira a s,

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Speaker 1: I'm gonna introduce our beer this episode. We have Superior

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Speaker 1: Barley Lime, which is a tequila barrel aged barley wine

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Speaker 1: style ale with lime. It's like bud Light lime, but

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Speaker 1: barley wine lime. Oh dude, Oh dude, No, I don't

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Speaker 1: think so, I don't. I don't think we can even

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Speaker 1: draw correlation here, Probably not yet. So at barley wine

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Speaker 1: is such a fascinating style of beer to me. It

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Speaker 1: possesses these flavors that no other style of beer can accomplish,

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Speaker 1: and the fact that this was aged into heala barrels

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Speaker 1: with a little bit of lime, And I'm really excited

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Speaker 1: to dig into this one. And big thanks to our

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Speaker 1: listener Heather for sending this one into us. We're really

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Speaker 1: excited to try this one to Heather out of Wisconsin,

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Speaker 1: even though this beer is out of Michigan. Is that right?

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Speaker 1: That's right? This is from a triple route. Yeah. Looking

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Speaker 1: forward to breaking this down and talking more about this

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Speaker 1: at the end of the episode. But now Matt onto

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Speaker 1: the subject at hand. We're talking about roth iras and

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Speaker 1: how awesome they are. They're beautiful, really, and it's important

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Speaker 1: to note that investment terms can be confusing. There are

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Speaker 1: all sorts of different vehicles that people can invest inside of.

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Speaker 1: It's hard to know which ones we should take advantage of.

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Speaker 1: A lot of our listeners have access to a four

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Speaker 1: oh one K I think fifty of Americans have access

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Speaker 1: to four oh one KSE where they work. If not,

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Speaker 1: maybe they have access to a four seven B. There

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Speaker 1: are lots of different kinds of iras. There are set

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Speaker 1: bi ras, they're traditional irase, but the roth is one

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Speaker 1: of my favorite kinds of iras, and it's also one

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Speaker 1: of the most flexible retirement vehicles out there, and so

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Speaker 1: I think it's important to kind of talk about why

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Speaker 1: people should consider saving in a roth and the advantages

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Speaker 1: that it comes along with. And Jil, before we get

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Speaker 1: two into the details of the roth ira, it's it's

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Speaker 1: good to clarify that the RATH is an investment vehicle, right.

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Speaker 1: It's not an actual investment itself, but it's it's an

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Speaker 1: account that you open, and so once you've opened an

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Speaker 1: account or a roth ira, you can then fill it

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Speaker 1: with investments things like stocks and bonds, mutual funds, our

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Speaker 1: favorite index funds that we often talk about. But by default,

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Speaker 1: when you first move money into that account, it's gonna

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Speaker 1: sit there as cash typically until you make a purchase,

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Speaker 1: until you buy those stocks, until you buy those index funds.

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Speaker 1: And so a lot of times folks can get confused

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Speaker 1: as to thinking, cool, I I opened a roth I'm investing. Now. Yes,

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Speaker 1: you have opened that account and you have the framework

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Speaker 1: to invest, but now you get to fill that vehicle

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Speaker 1: full of all of your favorite stocks and bonds and

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Speaker 1: again our favorite low cost, widely diversified index funds. Yeah,

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Speaker 1: and a lot of people discuss whether roth iras or

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Speaker 1: traditional iras are better and whether you decide to invest

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Speaker 1: in a roth ira or a traditional ira. Well, so

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Speaker 1: much of its centers around whether or not you think

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Speaker 1: your taxes are going to be higher in the future

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Speaker 1: than they are today. And so with the rath you

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Speaker 1: actually pay taxes on the money before you actually end

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Speaker 1: up putting that money into your roth ira, your investment

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Speaker 1: grows tax free. And then once you reach the age

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Speaker 1: of fifty nine and a half, I don't know why

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Speaker 1: they do halfs It's so weird, right, yeah, blizz ball night.

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Speaker 1: Every single time, I'm like, why can we just say

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Speaker 1: fifty nine or sixty or just sixty, Like, why not sixty?

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Speaker 1: It's a nice round, you know, hard number. It's silly,

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Speaker 1: it's weird. Yeah, But then district distributions are tax free.

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Speaker 1: Traditional iras you don't pay any taxes right now on

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Speaker 1: the money that you're contributing, but you do pay taxes

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Speaker 1: when you withdraw on the back end. So that's the

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Speaker 1: main difference. It's tax structure. It's whether you pay taxes

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Speaker 1: now or whether you pay taxes later. And so there

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Speaker 1: are all sorts of discussions that happened around this. We

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Speaker 1: like the Wrath for a few reasons, and in particular

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Speaker 1: because of the way the current tax law is structured.

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Speaker 1: For a lot of low and middle income folks, taking

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Speaker 1: the tax hit now actually makes the most sense because

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Speaker 1: tax rates haven't been lower in quite some time. Yeah, man, Like,

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Speaker 1: the fact is that nobody knows what their tax work

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Speaker 1: is going to be in the future. But what we

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Speaker 1: do know is that the greatest wealth is created by

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Speaker 1: paying taxes when the rates are the lowest, and essentially

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Speaker 1: when you open a roth ira and you go ahead

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Speaker 1: and pay those taxes now, it's sort of like ripping

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Speaker 1: the band aid off, just clean and quickly, right now,

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Speaker 1: versus maybe leaving it on there thinking, well, maybe down

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Speaker 1: the road it'll hurt less. Well, you don't really know

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Speaker 1: if it'll hurt less. It might hurt less, or it

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Speaker 1: might hurt way more because that band aid has become

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Speaker 1: one with your body. I don't know that sounds kind

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Speaker 1: of gruesome, but Joe, you know what I'm saying. It's

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Speaker 1: just a matter of getting it over with and kind

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Speaker 1: of facing the facts, facing the music, and kind of

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Speaker 1: moving on with life. No completely, I think it's the

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Speaker 1: devil you know, versus the devil you don't. And the

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Speaker 1: fact that we know that tax rates are at essentially

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Speaker 1: the lowest they've been in a long time for low

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Speaker 1: to middle income folks, it just makes sense to maximize

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Speaker 1: on that. And there's certainly a lot of speculation about

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Speaker 1: the current level of debt that the United States is

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Speaker 1: in and the fact that we continue to dig ourselves

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Speaker 1: in a bigger and bigger hole that's very foreboding when

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Speaker 1: it comes to what taxes could be in the future.

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Speaker 1: And so I think it makes a lot of sense

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Speaker 1: to to take the devil that you know right now

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Speaker 1: that taxes are actually, you know, pretty low, and so

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Speaker 1: ripping that band aid off, paying the taxes and contributing

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Speaker 1: to a rath makes a lot of sense. There are

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Speaker 1: a lot of other reasons that the rath is excellent,

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Speaker 1: but but knowing that taxes are are incredibly low right

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Speaker 1: now for a lot of folks in that boat, I

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Speaker 1: feel like that puts another big check mark in the

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Speaker 1: box of take the hit now. And so some quick

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Speaker 1: specifics when it comes to qualifying for a roth IRA,

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Speaker 1: you have to have earned income, and so that means

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Speaker 1: that if you are a parent, I've heard about this

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Speaker 1: a lot jole where a parent will open up a

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Speaker 1: roth ira for their teenage kid and say, if they

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Speaker 1: just had a summer job where they earned like four

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Speaker 1: thousand dollars, as a parent, you can't max that out

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Speaker 1: for them and contribute the you know, the full maximum

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Speaker 1: of six thousand dollars. Your contributions cannot exceed what that

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Speaker 1: individual actually earned. So that might seem like a no brainer,

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Speaker 1: but that's something to keep in mind for sure. Yeah.

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Speaker 1: The only exception of that is a married couple filing jointly,

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Speaker 1: they can open a spousal wrath for the non working spouse,

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Speaker 1: and so yeah, that's a really good way to be

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Speaker 1: able to maximize your wrath savings when only one person

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Speaker 1: in a relationship is actually working. But again, you have

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Speaker 1: to be married filing your taxes jointly. Yeah, so with

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Speaker 1: that six thousand dollar contribution limit, you and your spouse

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Speaker 1: you can contribute a total of twelve tho dollars, which

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Speaker 1: is a good chunk of change every single year. Just

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Speaker 1: make sure that you're not earning too much. You must

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Speaker 1: earn less than a hundred and thirty seven thousand dollars

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Speaker 1: if you're single. There's a phase out that begins at

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Speaker 1: a hundred twenty two thousand, where you're not able to

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Speaker 1: take full advantage, and if you're married filing jointly, you

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Speaker 1: must make less than two hundred and three thousand dollars,

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Speaker 1: although the phase out for married couple starts at a

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Speaker 1: hundred and ninety three thousand. Again, that seems like a

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Speaker 1: lot of money, But the reason we're mentioning that is

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Speaker 1: that you can be a pretty high earner right and

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Speaker 1: still contribute to a roth ira. You know, we mentioned

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Speaker 1: how the way that taxes are set up currently, it's

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Speaker 1: pretty advantageous too low and middle class folks to get

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Speaker 1: their roth ira started. But you can be making pretty

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Speaker 1: good money, man, and still contribute to a roth ira

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Speaker 1: and take advantage of those benefits. Yeah, and if you

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Speaker 1: actually make more money than Matt just mentioned when it

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Speaker 1: comes to those roth ira limits, there are other ways

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Speaker 1: to get your money into a roth account, and we'll

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Speaker 1: get into those kind of further on down in the episode.

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Speaker 1: But next, let's get to the specific reasons that a

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Speaker 1: roth ira is incredibly flexible and also confunction as a

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Speaker 1: glorified emergency fund. We'll get to those right after the

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Speaker 1: break Jill, you just mentioned a glorified emergency fund. We're

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Speaker 1: gonna get to that here in a second. I know

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Speaker 1: that's your favorite aspects of roth iras, and well, you

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Speaker 1: know that's a big part of why they're so flexible. First, quickly,

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Speaker 1: let's talk about how you have more specific fund options

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Speaker 1: than you likely would have through your workplace retirement accounts. So,

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Speaker 1: whether that be your four oh one k R four

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Speaker 1: fifty seven B, you know, you get to choose the

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Speaker 1: company that you want to do business with when you

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Speaker 1: open up your own roth ira A. When you have

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Speaker 1: an employer sponsored retirement account, essentially you have a limited menu.

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Speaker 1: It's sort of like getting the demo version of that

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Speaker 1: video game when you're a kid and the worst like, man,

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Speaker 1: I gotta pay more to get the whole game. Just

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Speaker 1: crushed level one. Now I'm ready, but keep crushing that

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Speaker 1: level one because I can't afford the game. But oftentimes

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Speaker 1: you are limited in what you can invest in, and

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Speaker 1: oftentimes that means you are stuck with options that aren't

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Speaker 1: so great. It means funds that have higher expense ratios.

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Speaker 1: And what that means is over the long term, the

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Speaker 1: money that you have invested in you're gonna be earning less. Yeah,

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Speaker 1: fees on a retirement account are a killer, But lots

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Speaker 1: of employers do have great options, right. It's it's not

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Speaker 1: that there aren't, especially in bigger employers with a low

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Speaker 1: cost provider. It's not that there aren't a lot of

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Speaker 1: good options because most employers do make it available a

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Speaker 1: lot of low cost, really solid index funds, do they.

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Speaker 1: You wouldn't know, Well, yeah, that's that's that's why I'm

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Speaker 1: asking because I literally have never had a work sponsored

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Speaker 1: retirement account being self employed basically my entire life. So yeah,

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Speaker 1: I don't know what that's like. Joel. You gotta peel

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Speaker 1: back the curtain a little bit. Let me peek inside,

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Speaker 1: all right, all right, So it's it's really depending on

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Speaker 1: the company. It's at least where I work, it's not

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Speaker 1: that bad. We're with Vanguard, but we do have fewer

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Speaker 1: fund choices inside of my four oh one K than

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Speaker 1: I have with my roth Ira that my employer has

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Speaker 1: essentially designated a certain amount of funds. I think it's

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Speaker 1: like eighteen that I can invest inside of, Whereas if

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Speaker 1: I'm investing in a roth IRA through Vanguard on my

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Speaker 1: own versus in my employer's plan. I have access to

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Speaker 1: essentially thousands of different ETFs, index funds and mutual funds.

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Speaker 1: It's like the world is my oyster, and I get

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Speaker 1: to determine my own future. And so I don't obviously

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Speaker 1: forgo investing in my work for one K because there's

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Speaker 1: an awesome match associated with it, and it's just a

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Speaker 1: great retirement vehicle. And like I said, I have access

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Speaker 1: to really good funds, but it's just important to know

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Speaker 1: that depending on your employer, you might not have access

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Speaker 1: to quite as good a funds. And opening up a

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Speaker 1: ROTH on your own, well, you can choose where you

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Speaker 1: want to do business and you can pick the exact

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Speaker 1: funds that make the most sense for you. Yeah, and Joel,

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Speaker 1: we've mentioned this before, but if you are in the

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Speaker 1: wealth building stage of life, if you've got a few

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Speaker 1: decades left to go before you're looking at retiring, you're

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Speaker 1: gonna be looking at something like a total stock market

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Speaker 1: index fund where you have exposure to a lot of stocks.

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Speaker 1: This isn't a specific investing episode where we're talking about

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Speaker 1: what's investing, but of course I just wanted to mention that. Alright, Matt,

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Speaker 1: so can we get to one of my favorite elements

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Speaker 1: of the RATH. Now it's the emergency fund factor. Let's

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Speaker 1: get to it. Okay, all right, thank you. So I

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Speaker 1: feel like the great thing about investing in a roth ira,

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Speaker 1: if you do it consistently through the years, a roth

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Speaker 1: ira can actually function for you as a glorified emergency fund.

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Speaker 1: And the reason that is is because you're allowed to

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Speaker 1: take out your contributions tax and penalty free at any time.

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Speaker 1: And so this upside to the rath actually kind of

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Speaker 1: comes with the downside because if you are undisciplined, you

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Speaker 1: can take out money that you've set aside for your

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Speaker 1: future to spend it on a flat screen TV or

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Speaker 1: something just just incredibly silly, bad idea, super bad idea. Wait,

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Speaker 1: are you mentioned the flat screen TV? Because on the

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Speaker 1: Stop Buying New Stuff episode I mentioned how I like

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Speaker 1: I like my four kt V tool. Yeah. I'm just

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Speaker 1: trying to drag you through the dirt again, right, No,

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Speaker 1: I'm definitely not trying to do that, buddy. But the

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Speaker 1: ability to pull out your contributions tax and penalty free

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Speaker 1: is really cool if you're making a major purchase or

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Speaker 1: making an investment. So whether taking a little bit out

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Speaker 1: of your roth EYRA contributions helps you get to the

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Speaker 1: point where you're able to put down on a mortgage

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Speaker 1: and avoid p m I, or you're taking some out

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Speaker 1: in order to be able to buy our rental property

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Speaker 1: in all cash. That ability to take those contributions out

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Speaker 1: tax and penalty free is one of the best things

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Speaker 1: about the WRATH. It's just flexible. And ultimately, if you've

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Speaker 1: been doing it for quite a while and you've built

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Speaker 1: up a substantial investment savings in a ROTH, you can

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Speaker 1: just keep less money in a savings account because you

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Speaker 1: know you can take out just a small amount of

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Speaker 1: those contributions if an emergency should come up. Yeah, man,

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Speaker 1: having an emergency fund, right, having that financial margin, having

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Speaker 1: that cushion, it's so important. But that's one of the

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Speaker 1: huge mummers of keeping a lot of cash like that

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Speaker 1: sitting around and a savings account is that it's not

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Speaker 1: earning a ton of money. So like I know, you

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Speaker 1: like to do. You like to have that money working

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Speaker 1: for you growing in the market. And the fact is,

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Speaker 1: emergencies don't come along all that often. But if it

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Speaker 1: ever does happen, yeah, you've got that rath IRA money.

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Speaker 1: You've got those contributions that you can draw on. And

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Speaker 1: I want to pig you back as well, back to

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Speaker 1: you know, some of the reasons that you gave for

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Speaker 1: pulling some of those contributions out, which is to make money. Right, Like,

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Speaker 1: we're not advocating, like we said, the flat screen or

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Speaker 1: any other sort of consumption based perchase us, but a

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Speaker 1: sort of purchase that might make you money. Essentially, that's

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Speaker 1: the definition of an investment. And so we're talking about

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Speaker 1: taking money out of one investment to put into another.

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Speaker 1: And that might be the case when it comes to

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Speaker 1: real estate or another maybe a business that you're thinking

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Speaker 1: about starting up, where the return could be substantially more

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Speaker 1: than what you would earn in the market. I think

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Speaker 1: it's just incredibly important to distinguish the difference between withdrawing

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Speaker 1: money for a big purchase for consumption versus withdrawing money

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Speaker 1: for a purchase that might make you money. And so

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Speaker 1: obviously we're leaning towards the side of things that would

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Speaker 1: make you money. So I have taken money out of

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Speaker 1: my wrath Ira Matt contributions only because just to reiterate,

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Speaker 1: you can't take out the growth. If you take out

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Speaker 1: the growth, you'll be taxed and penalized on those withdrawals,

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Speaker 1: So you want to stick to only the amount that

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Speaker 1: you've contributed to your wrath in order to avoid those

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Speaker 1: taxes and penalties. But I have withdrawn from my wrath

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Speaker 1: twice in my life, and the first time that I

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Speaker 1: withdrew money from the wrath was not really a good reason.

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Speaker 1: I had a car that had kind of major engine

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Speaker 1: troubles and I needed to get it fixed, and so

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Speaker 1: I withdrew money from my wrath before I realized how

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Speaker 1: dumb that was in order to try to keep my

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Speaker 1: emergency savings account intact, which is backwards thinking, Really, I

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Speaker 1: should have taken the emergency fund and kept the money

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Speaker 1: in my wrath and then tried to rebuild that savings fund.

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Speaker 1: And then the other time that I withdrew money from

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Speaker 1: my wrath was literally just to get to that twenty

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Speaker 1: down payment on a rental property. And in that example,

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Speaker 1: I was taking investment money and funding another investment. So, yeah,

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Speaker 1: don't do what I did on number one. But if

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Speaker 1: there's an investment that you think makes sense, I think

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Speaker 1: that that is one of the best reasons to have

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Speaker 1: money in a wrath is because of that flexibility Joel,

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Speaker 1: I'm sure that car repair was early on in your

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Speaker 1: financial career, right, It sure was, really yeah, and it

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Speaker 1: was not the smartest decision, that's for sure. But Joel,

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Speaker 1: let's quickly kind of talk about the difference between your

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Speaker 1: contributions and the earnings. And we've had folks asked before

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Speaker 1: you know that I've contributed to my wrath IRA, and

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Speaker 1: now I do want to pull a little bit out.

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Speaker 1: How do I make sure that the government, because it's

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Speaker 1: the government, right, they're the ones who care if you

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Speaker 1: take money out of your retirement account because there's tax

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Speaker 1: implications associated with that. And so the question is, how

401
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Speaker 1: do I make sure that the money I withdraw from

402
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Speaker 1: my rath I ra A are the contributions and not

403
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Speaker 1: the earnings, Like, how do I designate that? Right? So, say,

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Speaker 1: for for instance, you've invested twenty five thou dollars over

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Speaker 1: the past five years. Let's say hypothetically that has now

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Speaker 1: grown to forty thou. We've had folks ask how do

407
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Speaker 1: I make sure that I'm not drawing that fifteen thousand

408
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Speaker 1: dollars in growth and that instead I am drawing from

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Speaker 1: that twenty dollars. Well, the fact is is that it

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Speaker 1: doesn't matter. As long as you are taking out less

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Speaker 1: than what you have originally contributed, you are in the clear.

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Speaker 1: If you've kept up with your paperwork. By default, the

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Speaker 1: government knows that you're going to be withdrawing from the

414
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Speaker 1: contributions and that you're not going to take the tax

415
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Speaker 1: penalty by you know, withdrawing your actual earnings. And so

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Speaker 1: you know, from that standpoint, be concerned with somehow naming

417
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Speaker 1: or designating the money that you are withdrawing, but do

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Speaker 1: make sure that you hang onto the paperwork from the

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Speaker 1: company that you have your roth ira with. Yeah, another

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Speaker 1: really cool thing about roth iras is that when you

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Speaker 1: get really old, when you reach the age of seventy

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Speaker 1: and a half, you don't have to take what's known

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Speaker 1: as required minimum distributions, whereas with a four oh one

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Speaker 1: k and a traditional ira, you actually are forced by

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Speaker 1: the government to start withdrawing funds. Well with a roth

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Speaker 1: ira that ain't the case, and so that's kind of cool.

427
00:20:27,160 --> 00:20:29,920
Speaker 1: If you want to keep your money growing and keep

428
00:20:29,920 --> 00:20:33,040
Speaker 1: it invested. That obviously a long way down the line,

429
00:20:33,280 --> 00:20:36,880
Speaker 1: but it's another element of flexibility that the rath adds

430
00:20:37,280 --> 00:20:40,080
Speaker 1: to kind of the way you tap your retirement funds

431
00:20:40,359 --> 00:20:43,160
Speaker 1: as you age. Yeah, that's so great. If you're still

432
00:20:43,160 --> 00:20:45,800
Speaker 1: working some you know, if you have enough money coming

433
00:20:45,800 --> 00:20:48,560
Speaker 1: in to cover your living expenses, you don't have to

434
00:20:48,560 --> 00:20:51,800
Speaker 1: take that money out. This is not required and that's

435
00:20:51,920 --> 00:20:55,120
Speaker 1: especially good, by the way, for airs if you eventually

436
00:20:55,160 --> 00:20:57,760
Speaker 1: desire to see some of your your children or people

437
00:20:57,760 --> 00:21:01,000
Speaker 1: that you love inherit some of your a roth ira

438
00:21:01,160 --> 00:21:04,720
Speaker 1: is just a great vehicle for inheritance money. Angel. Another

439
00:21:04,840 --> 00:21:07,040
Speaker 1: benefit we wanted to cover when it comes to roth

440
00:21:07,160 --> 00:21:11,120
Speaker 1: iras is how you're essentially tricking yourself into saving more

441
00:21:11,119 --> 00:21:14,760
Speaker 1: money when you are investing into a wrath. And what

442
00:21:14,800 --> 00:21:16,560
Speaker 1: we mean by that is that with a roth you

443
00:21:16,600 --> 00:21:20,320
Speaker 1: have more post retirement money. Let me explain it. So,

444
00:21:20,400 --> 00:21:23,760
Speaker 1: with a traditional ira, you get the tax benefits now, right,

445
00:21:23,800 --> 00:21:26,160
Speaker 1: So you contribute to your four one K or your

446
00:21:26,400 --> 00:21:29,800
Speaker 1: traditional ira, and you realize that tax benefit that year

447
00:21:30,000 --> 00:21:32,199
Speaker 1: or the next year when you do your taxes, and

448
00:21:32,320 --> 00:21:35,480
Speaker 1: chances are most folks aren't likely to invest that additional

449
00:21:35,520 --> 00:21:39,200
Speaker 1: benefit right those savings because it's just seen as a bonus.

450
00:21:39,440 --> 00:21:43,040
Speaker 1: But with a rath, that tax benefit occurs during retirement,

451
00:21:43,520 --> 00:21:47,160
Speaker 1: once you've presumably stopped working and you realize that tax

452
00:21:47,240 --> 00:21:49,960
Speaker 1: benefit when you need it more, right, when you're older

453
00:21:50,000 --> 00:21:52,840
Speaker 1: and you are not working. And it also happens that

454
00:21:52,880 --> 00:21:55,640
Speaker 1: this is when typically when you're wiser and you're less

455
00:21:55,640 --> 00:21:59,879
Speaker 1: likely to spend that money on consumption. Dim I explain that,

456
00:22:00,119 --> 00:22:02,119
Speaker 1: does that make sense? Yeah? I think The way I

457
00:22:02,119 --> 00:22:04,919
Speaker 1: think about it too, is is that contributing money to

458
00:22:04,920 --> 00:22:07,520
Speaker 1: a ROTH as opposed to a traditional IRA is basically

459
00:22:07,560 --> 00:22:11,600
Speaker 1: this sweet forced method of savings, because most people think

460
00:22:11,640 --> 00:22:13,719
Speaker 1: about it in terms of a lump sum that they

461
00:22:13,720 --> 00:22:16,679
Speaker 1: have to invest every year. Most people then use a

462
00:22:16,760 --> 00:22:19,520
Speaker 1: method called dollar cost averaging in order to you know,

463
00:22:19,520 --> 00:22:21,920
Speaker 1: put their money in once a month or every paycheck.

464
00:22:22,240 --> 00:22:24,200
Speaker 1: But ultimately most people say, you know what, I've got

465
00:22:24,240 --> 00:22:26,520
Speaker 1: four thousand dollars this year that I can contribute to

466
00:22:26,560 --> 00:22:29,480
Speaker 1: a retirement account, or I've got six thousand dollars this

467
00:22:29,560 --> 00:22:32,280
Speaker 1: year that I can contribute to a retirement account. And

468
00:22:32,359 --> 00:22:34,840
Speaker 1: the fact is if you decide to contribute to a

469
00:22:34,880 --> 00:22:38,280
Speaker 1: traditional I array instead of a roth IRA, well, in effect,

470
00:22:38,280 --> 00:22:40,040
Speaker 1: you're putting in less money because if you put six

471
00:22:40,080 --> 00:22:43,760
Speaker 1: thousand dollars into a traditional IRA, that's six thousand dollars

472
00:22:43,800 --> 00:22:46,760
Speaker 1: will be taxed someday when you withdraw it in retirement,

473
00:22:47,119 --> 00:22:49,080
Speaker 1: whereas if you put it into a roth I array,

474
00:22:49,400 --> 00:22:53,440
Speaker 1: is this kind of forced method of saving more because

475
00:22:53,560 --> 00:22:57,160
Speaker 1: that six thousand dollars will never be taxed ever again. Yeah,

476
00:22:57,160 --> 00:22:59,520
Speaker 1: you got that additional tax fee. Maybe if you want

477
00:22:59,560 --> 00:23:01,359
Speaker 1: to look at that way upfront, like you kind of

478
00:23:01,359 --> 00:23:02,760
Speaker 1: pay to play a little bit. It's like, all right,

479
00:23:02,760 --> 00:23:04,560
Speaker 1: if I want to get this six thousand dollars in

480
00:23:04,560 --> 00:23:06,359
Speaker 1: the market invested in the rath, I'm gonna have to

481
00:23:06,359 --> 00:23:08,840
Speaker 1: pay a little bit more because it's gonna be taxed. However,

482
00:23:08,880 --> 00:23:10,600
Speaker 1: like you said, in the long term, you know that

483
00:23:10,640 --> 00:23:12,520
Speaker 1: money is never gonna be taxed again, and so in

484
00:23:12,560 --> 00:23:15,280
Speaker 1: the end you're gonna end up with more money. Yeah. Man,

485
00:23:15,320 --> 00:23:18,040
Speaker 1: I feel like this conversation about a roth hira versus

486
00:23:18,080 --> 00:23:21,720
Speaker 1: a traditional ira, good people come down on different sides

487
00:23:21,760 --> 00:23:24,760
Speaker 1: of this, and ultimately you and I we would say,

488
00:23:24,800 --> 00:23:27,200
Speaker 1: whether you like the traditional ira better or a roth

489
00:23:27,280 --> 00:23:30,040
Speaker 1: ira better, the most important thing is to actually get

490
00:23:30,080 --> 00:23:33,480
Speaker 1: started and to continue to invest through the months and years.

491
00:23:33,760 --> 00:23:36,119
Speaker 1: But we like the roth for a lot of reasons.

492
00:23:36,240 --> 00:23:38,360
Speaker 1: And let's get into some of those other reasons as

493
00:23:38,400 --> 00:23:40,840
Speaker 1: well as what you should do if your employer offers

494
00:23:40,880 --> 00:23:43,320
Speaker 1: a wrath for oh one K. We'll get to that

495
00:23:43,400 --> 00:23:55,280
Speaker 1: right after the break, Okay, Joel, let's bring it back

496
00:23:55,320 --> 00:23:57,920
Speaker 1: from the break, and before we continue to talk about

497
00:23:58,000 --> 00:24:01,639
Speaker 1: the roth ira and other posts acts accounts, let's mention

498
00:24:01,680 --> 00:24:04,200
Speaker 1: how you know, we are not hating on pre tax

499
00:24:04,240 --> 00:24:07,240
Speaker 1: accounts like a traditional IRA or a four oh n K.

500
00:24:07,720 --> 00:24:12,119
Speaker 1: There's certainly benefits to having your retirement accounts diversified. We

501
00:24:12,160 --> 00:24:15,679
Speaker 1: think it's wise to have multiple buckets of retirement money because,

502
00:24:15,800 --> 00:24:18,080
Speaker 1: like we mentioned at the very beginning of this episode,

503
00:24:18,080 --> 00:24:20,200
Speaker 1: we don't know what the tax rate is going to

504
00:24:20,320 --> 00:24:22,439
Speaker 1: be by the time you hit retirement. We don't know

505
00:24:22,440 --> 00:24:24,119
Speaker 1: what it's going to be for us, and so to

506
00:24:24,200 --> 00:24:26,520
Speaker 1: have options when the time comes, that's gonna put you

507
00:24:26,560 --> 00:24:29,720
Speaker 1: in a position of financial strength. Really, what we're focusing

508
00:24:29,720 --> 00:24:31,919
Speaker 1: on here is how the rath I ray is just

509
00:24:32,000 --> 00:24:35,080
Speaker 1: so incredibly flexible and just gives you a lot of

510
00:24:35,119 --> 00:24:37,679
Speaker 1: agility when it comes to being creative with your money

511
00:24:37,880 --> 00:24:40,760
Speaker 1: in ways. In addition to just putting that money into

512
00:24:40,880 --> 00:24:44,439
Speaker 1: a retirement account. Yeah, if you are contributing money to

513
00:24:44,480 --> 00:24:45,919
Speaker 1: a four O one K through work and then a

514
00:24:46,040 --> 00:24:49,080
Speaker 1: roth iray on the side, it's that kind of perfect

515
00:24:49,119 --> 00:24:52,040
Speaker 1: Yin and yang right that they balance each other like that,

516
00:24:52,560 --> 00:24:54,840
Speaker 1: sort of like you and me Joel something like that,

517
00:24:54,960 --> 00:24:57,800
Speaker 1: something like that. And I love how when you do

518
00:24:57,920 --> 00:25:00,560
Speaker 1: get to the point where you're ready to withdraw your funds,

519
00:25:00,960 --> 00:25:03,600
Speaker 1: that you have a lot of control over your tax

520
00:25:03,680 --> 00:25:07,960
Speaker 1: situation in retirement if you have access to pre tax

521
00:25:08,040 --> 00:25:12,280
Speaker 1: and post tax retirement funds. And that's exactly what you're doing,

522
00:25:12,320 --> 00:25:14,560
Speaker 1: how you're setting yourself up. If you're contributing to a

523
00:25:14,560 --> 00:25:17,840
Speaker 1: four oh one K and to a roth IRA, you're

524
00:25:17,880 --> 00:25:20,800
Speaker 1: just making it really easy on yourself when it comes

525
00:25:20,840 --> 00:25:24,280
Speaker 1: to what sort of taxes you pay every single year

526
00:25:24,720 --> 00:25:27,960
Speaker 1: when you're withdrawing those funds to live on. Yeah. And

527
00:25:27,960 --> 00:25:30,840
Speaker 1: another example of that is the Wrath four O n

528
00:25:30,920 --> 00:25:32,960
Speaker 1: K And so this is sort of a hybrid between

529
00:25:33,080 --> 00:25:35,040
Speaker 1: the four O one K that you have offered hopefully

530
00:25:35,080 --> 00:25:38,159
Speaker 1: through your employer if you're a W two earner, but

531
00:25:38,280 --> 00:25:41,480
Speaker 1: coupled with the benefits of the RATH and JUEL. You

532
00:25:41,520 --> 00:25:43,520
Speaker 1: want to explain how that works a little bit, Yeah,

533
00:25:43,560 --> 00:25:45,760
Speaker 1: So a RATH four O one K is being offered

534
00:25:45,840 --> 00:25:49,119
Speaker 1: at more and more employers around the country. Also, the

535
00:25:49,160 --> 00:25:52,840
Speaker 1: government offers a RATH TSP. So if you have access

536
00:25:52,880 --> 00:25:54,960
Speaker 1: to that, that's a great option for you as well.

537
00:25:55,040 --> 00:25:57,439
Speaker 1: It is just kind of marriage of a four oh

538
00:25:57,440 --> 00:25:59,679
Speaker 1: one K and a roth ira. And the great thing

539
00:25:59,680 --> 00:26:01,720
Speaker 1: about contributing to a Roth four oh one K or

540
00:26:01,760 --> 00:26:04,800
Speaker 1: to a Roth TSP is that you can actually contribute

541
00:26:04,840 --> 00:26:07,960
Speaker 1: a whole lot more. We mentioned that the contribution limits

542
00:26:08,040 --> 00:26:11,199
Speaker 1: on a roth ira are only six thousand dollars, and

543
00:26:11,240 --> 00:26:13,359
Speaker 1: so while that's great and there are probably a lot

544
00:26:13,400 --> 00:26:15,520
Speaker 1: of people listening to this that are saying, man, I

545
00:26:15,560 --> 00:26:18,679
Speaker 1: hope one day I can match up just that roth ira, right,

546
00:26:18,720 --> 00:26:21,400
Speaker 1: there are also a lot of other people who want

547
00:26:21,440 --> 00:26:23,480
Speaker 1: to do more. And if you have access to a

548
00:26:23,560 --> 00:26:26,080
Speaker 1: Roth four oh one K, you can contribute up to

549
00:26:26,240 --> 00:26:28,600
Speaker 1: nineteen thousand dollars a year if you're under the age

550
00:26:28,640 --> 00:26:31,440
Speaker 1: of fifty and twenty five tho dollars a year if

551
00:26:31,480 --> 00:26:33,639
Speaker 1: you are over to that age. And so that's just

552
00:26:33,680 --> 00:26:36,639
Speaker 1: another way for you to pay the taxman now and

553
00:26:36,720 --> 00:26:39,919
Speaker 1: to set aside a bunch of money invested for your future.

554
00:26:40,200 --> 00:26:41,840
Speaker 1: I'm a big fan of the Roth four oh one

555
00:26:41,920 --> 00:26:44,959
Speaker 1: K and TSP. The interesting thing to Matt is that

556
00:26:45,080 --> 00:26:46,960
Speaker 1: let's say you have a rath furrow one k through

557
00:26:47,000 --> 00:26:51,400
Speaker 1: work and your employer offers a match, well, their match

558
00:26:51,440 --> 00:26:54,640
Speaker 1: actually goes into a traditional four one K, whereas your

559
00:26:54,720 --> 00:26:57,520
Speaker 1: contributions are going into the ROTH version. And so at

560
00:26:57,560 --> 00:27:00,119
Speaker 1: the same time you're contributing to the roth version and

561
00:27:00,400 --> 00:27:02,720
Speaker 1: you're creating kind of that same mix in how your

562
00:27:02,720 --> 00:27:05,680
Speaker 1: investment funds are treated when it comes to taxes. And

563
00:27:05,840 --> 00:27:08,080
Speaker 1: I think that's kind of cool too. Yeah, that's right.

564
00:27:08,160 --> 00:27:11,639
Speaker 1: Essentially you're creating a sort of a hybrid diversified approach

565
00:27:11,880 --> 00:27:13,800
Speaker 1: when it comes to the tax benefits that you would

566
00:27:13,840 --> 00:27:17,040
Speaker 1: receive on your different retirement accounts. And another way that

567
00:27:17,080 --> 00:27:20,879
Speaker 1: you are able to do that is through backdoor roth iras.

568
00:27:21,520 --> 00:27:24,720
Speaker 1: And this is Joel, something you mentioned alluded to earlier,

569
00:27:25,080 --> 00:27:28,480
Speaker 1: but real quickly, if you are a high income earner,

570
00:27:28,640 --> 00:27:31,679
Speaker 1: right and you no longer qualify to contribute to your

571
00:27:31,760 --> 00:27:34,000
Speaker 1: roth ira because you make too much, well, you can

572
00:27:34,000 --> 00:27:37,400
Speaker 1: still contribute that money to a traditional ira and then

573
00:27:37,440 --> 00:27:40,560
Speaker 1: convert it to a roth ira. This is a way

574
00:27:40,600 --> 00:27:44,400
Speaker 1: to essentially get around the income limits that are put

575
00:27:44,440 --> 00:27:48,240
Speaker 1: onto ross using a conversion. When you convert that money

576
00:27:48,320 --> 00:27:50,639
Speaker 1: from a traditional ira to a roth you will have

577
00:27:50,720 --> 00:27:53,000
Speaker 1: to pay the taxes on those right, and so when

578
00:27:53,000 --> 00:27:56,320
Speaker 1: you originally contributed to your traditional ira, you received a

579
00:27:56,359 --> 00:27:58,840
Speaker 1: tax benefit, you no longer needed to pay those taxes.

580
00:27:59,040 --> 00:28:01,000
Speaker 1: But when you convert that money to a wrath, just

581
00:28:01,040 --> 00:28:03,320
Speaker 1: like when you would typically contribute money to a roth ira,

582
00:28:03,560 --> 00:28:05,960
Speaker 1: you have to pay those taxes to be prepared for

583
00:28:06,000 --> 00:28:07,800
Speaker 1: that jil. Really, that's all we're gonna say about the

584
00:28:07,800 --> 00:28:10,920
Speaker 1: backdoor wrath, because we really could spend an entire episode

585
00:28:10,960 --> 00:28:13,800
Speaker 1: talking about the backdoor wrath on how it's great for

586
00:28:13,880 --> 00:28:16,000
Speaker 1: high income earners who are looking, like we said, to

587
00:28:16,119 --> 00:28:19,480
Speaker 1: diversify their tax liability when it comes to the retirement accounts.

588
00:28:19,880 --> 00:28:21,800
Speaker 1: Maybe we'll say that for an episode down the road.

589
00:28:21,800 --> 00:28:24,720
Speaker 1: Who knows. Yeah, there are a lot of great resources

590
00:28:24,760 --> 00:28:26,960
Speaker 1: out there for folks that are interested in doing a

591
00:28:27,000 --> 00:28:29,679
Speaker 1: backdoor wrath. But really this episode is all about how

592
00:28:29,720 --> 00:28:31,960
Speaker 1: great the rath Ira is, and so we did want

593
00:28:31,960 --> 00:28:33,880
Speaker 1: to touch on the backdoor wrath. We wanted to touch

594
00:28:33,920 --> 00:28:36,040
Speaker 1: on the rath four O one K, But when it

595
00:28:36,040 --> 00:28:38,240
Speaker 1: comes down to it, we're talking about this roth ira

596
00:28:38,600 --> 00:28:42,160
Speaker 1: and ultimately it's pretty amazing in its simplicity. You pay

597
00:28:42,200 --> 00:28:44,000
Speaker 1: tax on your income and then you know what, you

598
00:28:44,040 --> 00:28:46,240
Speaker 1: try to funnel as much as you can up to

599
00:28:46,280 --> 00:28:49,680
Speaker 1: that six thousand dollar level each for an individual twelve

600
00:28:49,680 --> 00:28:53,000
Speaker 1: thou dollars if you're married, and if you're over fifty

601
00:28:53,040 --> 00:28:55,800
Speaker 1: extra grand each. Right, But really having a roth ira

602
00:28:56,160 --> 00:28:59,080
Speaker 1: can give you a certain amount of flexibility when it

603
00:28:59,120 --> 00:29:01,480
Speaker 1: comes to saving fear retirement. You know, putting your money

604
00:29:01,480 --> 00:29:04,320
Speaker 1: aside into four one k it's great, we encourage it,

605
00:29:04,600 --> 00:29:07,120
Speaker 1: but at the same time, it's it's pretty much inaccessible

606
00:29:07,400 --> 00:29:10,320
Speaker 1: for decades on end, and a wrath gives you this

607
00:29:10,520 --> 00:29:13,800
Speaker 1: ability to invest for the long term while also having

608
00:29:14,200 --> 00:29:16,800
Speaker 1: just a little bit of accessibility in case you want

609
00:29:16,840 --> 00:29:20,000
Speaker 1: to diversify your investments later on down the line. And

610
00:29:20,040 --> 00:29:22,240
Speaker 1: it can also even turn into just kind of this

611
00:29:22,360 --> 00:29:25,480
Speaker 1: great emergency fund if you've been investing in a wrath

612
00:29:25,680 --> 00:29:29,120
Speaker 1: for a lot of years, it's got more flexibility than

613
00:29:29,200 --> 00:29:32,280
Speaker 1: any other retirement account I know of. And so it's

614
00:29:32,280 --> 00:29:35,240
Speaker 1: just really important for people to know that they can

615
00:29:35,360 --> 00:29:38,080
Speaker 1: and should if they have earned income and qualify to

616
00:29:38,200 --> 00:29:41,720
Speaker 1: contribute to a wrathy, they should really strongly consider it. Yes,

617
00:29:41,880 --> 00:29:45,440
Speaker 1: please contributes right. Big picture here, we're talking about the

618
00:29:45,440 --> 00:29:49,120
Speaker 1: differences often here between a roth ira and a traditional ira.

619
00:29:49,840 --> 00:29:51,840
Speaker 1: And if that's the sort of argument that you're having

620
00:29:51,880 --> 00:29:54,840
Speaker 1: with yourself or you know, with your friends, Well you're

621
00:29:54,840 --> 00:29:57,040
Speaker 1: gonna be okay, right, Like, that's the big thing. If

622
00:29:57,080 --> 00:29:59,880
Speaker 1: you are investing in one of those, you're doing great.

623
00:30:00,440 --> 00:30:02,960
Speaker 1: As long as you are investing and you're investing consistently,

624
00:30:03,000 --> 00:30:06,040
Speaker 1: you're gonna be okay. But in particular, if you are younger,

625
00:30:06,080 --> 00:30:08,320
Speaker 1: if you're in a lower tax bracket, and given our

626
00:30:08,360 --> 00:30:11,600
Speaker 1: current tax laws, for most folks, investing in a roth

627
00:30:11,680 --> 00:30:14,160
Speaker 1: ira is going to be the way to go. And also,

628
00:30:14,280 --> 00:30:16,880
Speaker 1: if you see your career on a trajectory where you

629
00:30:16,920 --> 00:30:18,880
Speaker 1: know you're gonna be earning a lot more money way

630
00:30:18,880 --> 00:30:21,240
Speaker 1: down the road, well you're gonna be at a higher

631
00:30:21,280 --> 00:30:24,400
Speaker 1: tax bracket pretty much guaranteed if that's the case. So again,

632
00:30:24,400 --> 00:30:26,440
Speaker 1: if you're young and you're not earning a ton of money,

633
00:30:26,480 --> 00:30:29,160
Speaker 1: but you are investing a lot of money, your tax rate,

634
00:30:29,200 --> 00:30:31,800
Speaker 1: your tax bracket it's pretty low. Invest that money and

635
00:30:31,800 --> 00:30:33,960
Speaker 1: go ahead and pay the taxes. Now, allow that money

636
00:30:34,040 --> 00:30:36,400
Speaker 1: to grow tax free. Well at the same time maintaining

637
00:30:36,440 --> 00:30:39,160
Speaker 1: some incredible flexibility over that money. All right, maw, Let's

638
00:30:39,160 --> 00:30:41,000
Speaker 1: get back to the beer. Today on the show, we

639
00:30:41,120 --> 00:30:44,640
Speaker 1: drank Superior barley Line by Triple Root Brewing and one

640
00:30:44,640 --> 00:30:47,880
Speaker 1: of our listeners, Heather, she sent this beer over. Man.

641
00:30:48,000 --> 00:30:50,440
Speaker 1: I love a good barley wine, and it's pretty rare.

642
00:30:50,480 --> 00:30:51,960
Speaker 1: I don't even know if we've had one on the

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00:30:51,960 --> 00:30:54,600
Speaker 1: show yet, And this one is fascinating because it was

644
00:30:54,680 --> 00:30:58,240
Speaker 1: aged in tequila barrels with lime, which kind of gives

645
00:30:58,280 --> 00:31:00,920
Speaker 1: us that kind of margarite vibe. Sounds kind of crazy, right,

646
00:31:01,000 --> 00:31:03,600
Speaker 1: it sounds crazy. I love a good barley wine personally

647
00:31:03,600 --> 00:31:06,000
Speaker 1: because I feel like they have these notes of figs,

648
00:31:06,240 --> 00:31:10,280
Speaker 1: raisins and plums, and this one in particular just really

649
00:31:10,320 --> 00:31:12,600
Speaker 1: had some fantastic flavors and then a little bit of

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00:31:12,600 --> 00:31:15,400
Speaker 1: that tequila barrel shining through. At the same time. This

651
00:31:15,440 --> 00:31:17,360
Speaker 1: was a really good beer. Yeah, I agree with you.

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00:31:17,480 --> 00:31:20,200
Speaker 1: Those big boozy flavors are you know, what you can

653
00:31:20,240 --> 00:31:22,520
Speaker 1: come to expect out of a barley wine. But in

654
00:31:22,520 --> 00:31:24,920
Speaker 1: particular I can tell that it was aged and barrel,

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00:31:25,440 --> 00:31:26,760
Speaker 1: and I feel like I could pick out a little

656
00:31:26,760 --> 00:31:28,040
Speaker 1: bit of the lime. It sort of had like this

657
00:31:28,080 --> 00:31:30,680
Speaker 1: sort of bitter brightness, sort of like you said, shining

658
00:31:30,720 --> 00:31:33,040
Speaker 1: through a little bit there, and it kept that boozy

659
00:31:33,160 --> 00:31:36,080
Speaker 1: sweetness from getting too heavy down that sweet path instead

660
00:31:36,160 --> 00:31:38,680
Speaker 1: kept kind of kept it bright and drinkable. This was

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00:31:38,960 --> 00:31:43,400
Speaker 1: a very unique and exceptional beer. I think we're incredibly

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00:31:43,480 --> 00:31:45,720
Speaker 1: lucky to have our hands on this, And again, thanks

663
00:31:45,760 --> 00:31:48,400
Speaker 1: so much to Heather for sending this one our away.

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00:31:48,480 --> 00:31:51,120
Speaker 1: We really appreciate it. Yeah, Matt, that was a incredibly

665
00:31:51,160 --> 00:31:53,200
Speaker 1: unique beer. So I feel like we kind of already

666
00:31:53,200 --> 00:31:55,680
Speaker 1: gave some final thoughts on why the rath i Ra

667
00:31:56,000 --> 00:31:58,720
Speaker 1: is such a good investment vehicle. The last thing I

668
00:31:58,720 --> 00:32:01,400
Speaker 1: want to say is to it started. If you haven't

669
00:32:01,440 --> 00:32:04,040
Speaker 1: opened to roth Ira, if you've kind of been investing

670
00:32:04,040 --> 00:32:05,680
Speaker 1: in your four own k up to the match and

671
00:32:05,720 --> 00:32:08,280
Speaker 1: you're looking for something else to do, We'll open up

672
00:32:08,280 --> 00:32:12,560
Speaker 1: a roth Ira. And we like companies like Charles Schwab,

673
00:32:12,720 --> 00:32:15,480
Speaker 1: Vanguard and Fidelity. Those are some of the best low

674
00:32:15,520 --> 00:32:18,400
Speaker 1: cost investment firms out there. And you can have a

675
00:32:18,480 --> 00:32:21,880
Speaker 1: roth opened in about five minutes. Really, it's not that hard.

676
00:32:22,120 --> 00:32:23,800
Speaker 1: And so yeah, the next thing to do is actually

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00:32:23,880 --> 00:32:26,040
Speaker 1: take some action to make it happen. We'll have links

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00:32:26,040 --> 00:32:28,760
Speaker 1: to those companies and more on our show notes at

679
00:32:28,760 --> 00:32:32,080
Speaker 1: how to money dot com. Yes we will, And if

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00:32:32,080 --> 00:32:34,000
Speaker 1: you found this episode helpful, we would love to hear

681
00:32:34,000 --> 00:32:36,520
Speaker 1: from you. Leave us a review over at Apple Podcasts.

682
00:32:36,680 --> 00:32:40,120
Speaker 1: Or wherever you listen to podcasts. Alright, buddy, until next time,

683
00:32:40,720 --> 00:32:42,240
Speaker 1: best friends out, Best friends out,