1 00:00:00,120 --> 00:00:03,560 Speaker 1: Welcome to Had of Money. I'm Joel and I am Matt, 2 00:00:03,640 --> 00:00:08,360 Speaker 1: and today we're talking about forced fiduciaries, bad budgeting, and 3 00:00:08,720 --> 00:00:09,959 Speaker 1: the one more year syndrome. 4 00:00:27,480 --> 00:00:29,680 Speaker 2: You know, a buddy, this is our Friday flight and 5 00:00:29,680 --> 00:00:31,760 Speaker 2: we're going to cover the top stories from this past 6 00:00:31,800 --> 00:00:35,360 Speaker 2: week and how it pertains to your personal finances. And 7 00:00:35,360 --> 00:00:36,839 Speaker 2: I was gonna mention real quick, you and I we 8 00:00:36,880 --> 00:00:39,760 Speaker 2: always like to take walks around the neighborhood. After a week, 9 00:00:40,840 --> 00:00:43,319 Speaker 2: we're turning into old men. But I guess we pay 10 00:00:43,360 --> 00:00:44,879 Speaker 2: more attention to our health. We like to go for 11 00:00:44,920 --> 00:00:46,599 Speaker 2: a walks after we eat our lunch. It's like it's 12 00:00:46,600 --> 00:00:48,160 Speaker 2: a part of our lunch break. And that's a mental 13 00:00:48,200 --> 00:00:50,199 Speaker 2: health break just as much it is a physical points. 14 00:00:50,400 --> 00:00:54,320 Speaker 2: It's the fresh air, sunshine, it's keeping your blood sugar 15 00:00:54,360 --> 00:00:57,520 Speaker 2: from completely spiking, the ability to move around take some steps. 16 00:00:57,760 --> 00:01:00,000 Speaker 2: But have you noticed there's been a lot of construction 17 00:01:00,440 --> 00:01:03,000 Speaker 2: on our like just around the corner so much. Did 18 00:01:03,040 --> 00:01:06,639 Speaker 2: you notice the ADU over there that literally which one, Matt, 19 00:01:07,640 --> 00:01:09,440 Speaker 2: good question. I'm talking about the one that went up 20 00:01:09,560 --> 00:01:12,080 Speaker 2: like virtually overnight. Yeah, it makes me think of like 21 00:01:12,120 --> 00:01:15,520 Speaker 2: this year's Roebuck house kits. We were talking about that. 22 00:01:15,640 --> 00:01:16,840 Speaker 2: Oh yeah again recently too. 23 00:01:16,840 --> 00:01:18,840 Speaker 1: But it used to be able to buy super cool 24 00:01:18,840 --> 00:01:23,920 Speaker 1: bungalows literally out of the catalog it for thousands of dollars. Literally, 25 00:01:23,959 --> 00:01:26,240 Speaker 1: It's what it looked like happened over there, because I 26 00:01:26,319 --> 00:01:28,959 Speaker 1: swear there was nothing there and then all of a sudden, yeah, 27 00:01:29,040 --> 00:01:32,640 Speaker 1: like there are guys bringing in pre constructed roof beams 28 00:01:32,680 --> 00:01:34,760 Speaker 1: and like, all of a sudden, there is like a 29 00:01:34,800 --> 00:01:37,200 Speaker 1: carriage house or ADU back, which I think is amazing. 30 00:01:37,240 --> 00:01:39,720 Speaker 1: Some of the prefab action kind of helps cut down on, 31 00:01:40,240 --> 00:01:43,000 Speaker 1: hopefully some of the costs and also makes a little 32 00:01:43,000 --> 00:01:45,480 Speaker 1: bit quicker to build. And ADUs are just kind of 33 00:01:45,520 --> 00:01:47,720 Speaker 1: boomtown right now in the places where they've been legalized 34 00:01:47,720 --> 00:01:50,520 Speaker 1: and where the rules to create those ADUs have been diminished. 35 00:01:51,040 --> 00:01:53,920 Speaker 1: When it's just easier to get it approved, then you 36 00:01:53,960 --> 00:01:55,920 Speaker 1: start building. And the cool thing about eighty US is 37 00:01:55,960 --> 00:01:57,680 Speaker 1: they're they're allowing a lot of people to dip their 38 00:01:57,720 --> 00:02:01,760 Speaker 1: toes into the real estate investing market without feeling like 39 00:02:01,760 --> 00:02:03,880 Speaker 1: you got to save up a ridiculous amount of money 40 00:02:03,920 --> 00:02:06,000 Speaker 1: and go out there and buy a duplex or triplex 41 00:02:06,080 --> 00:02:08,200 Speaker 1: or something like that. Right, So, yeah, and it just 42 00:02:08,280 --> 00:02:10,080 Speaker 1: makes it easier to manage. It's your backyard. You can 43 00:02:10,120 --> 00:02:11,959 Speaker 1: choose whether you want to do short term a long term. 44 00:02:12,120 --> 00:02:14,080 Speaker 1: ADUs are just such a great way to add more 45 00:02:14,120 --> 00:02:16,519 Speaker 1: housing supply. We're seeing it in California, like a huge 46 00:02:16,520 --> 00:02:19,600 Speaker 1: percentage of the units that are being built or ADUs 47 00:02:19,639 --> 00:02:23,040 Speaker 1: in people's backyards. They're creating more supply. They're really helping 48 00:02:23,120 --> 00:02:24,480 Speaker 1: with that problem that we face. 49 00:02:24,680 --> 00:02:27,720 Speaker 2: And why because of less red tape as opposed to 50 00:02:27,760 --> 00:02:30,600 Speaker 2: other forms of housing construction that they're attempting. That's right. 51 00:02:30,680 --> 00:02:34,560 Speaker 1: Yeah, So there was in Chad Carson's email chat Carson. 52 00:02:34,560 --> 00:02:36,960 Speaker 1: We love him, one of our favorite real estate investors. 53 00:02:36,560 --> 00:02:38,440 Speaker 2: Coach Carson Cool. You have to refer to him as 54 00:02:38,440 --> 00:02:40,760 Speaker 2: coach cars. I can call him chat. He forces you 55 00:02:40,800 --> 00:02:43,200 Speaker 2: to see. He makes me call him mister coach. Actually, 56 00:02:43,880 --> 00:02:45,560 Speaker 2: So one of the things he mentioned, and I didn't 57 00:02:45,600 --> 00:02:48,960 Speaker 2: realize this existed until his newsletter this week, he said. 58 00:02:49,160 --> 00:02:51,960 Speaker 1: You refer to a guy called that ADU guy. Maybe 59 00:02:51,960 --> 00:02:53,640 Speaker 1: we should have that EIGHTYU guy on the show at 60 00:02:53,680 --> 00:02:57,960 Speaker 1: some point. This is not his Christian birth name, but 61 00:02:58,400 --> 00:03:02,440 Speaker 1: he offers free EIGHTYU templates on his website. So if 62 00:03:02,520 --> 00:03:05,240 Speaker 1: you're kind of thinking about getting in the ADU game, 63 00:03:05,560 --> 00:03:07,040 Speaker 1: and it can. 64 00:03:06,960 --> 00:03:08,359 Speaker 2: Be expensive to get the plans drawn out of the 65 00:03:08,400 --> 00:03:10,240 Speaker 2: floor plans, yeah, construction documents. 66 00:03:10,280 --> 00:03:12,840 Speaker 1: So if you are like go over there and look, 67 00:03:12,840 --> 00:03:14,600 Speaker 1: and you're like, I like the look of that, well 68 00:03:14,880 --> 00:03:17,280 Speaker 1: that's one expense reduced at least, which I think is 69 00:03:17,320 --> 00:03:18,919 Speaker 1: so cool that guy makes it available for free. 70 00:03:19,240 --> 00:03:23,280 Speaker 2: And we'd mentioned atl Adua and one of the benefits 71 00:03:23,320 --> 00:03:24,959 Speaker 2: that they had was that as well, the fact that 72 00:03:25,000 --> 00:03:28,160 Speaker 2: they had the plans included into the cost of them 73 00:03:28,200 --> 00:03:30,440 Speaker 2: actually building it though, and so in that case you 74 00:03:30,440 --> 00:03:31,720 Speaker 2: can get it for free. You kind of had to 75 00:03:31,760 --> 00:03:33,880 Speaker 2: go with the whole package. But in this case, yeah, 76 00:03:33,919 --> 00:03:36,040 Speaker 2: you can get the plans and if you can, you know, 77 00:03:36,160 --> 00:03:39,680 Speaker 2: arrange something with another local contractor well, that's one least step, 78 00:03:39,720 --> 00:03:42,840 Speaker 2: one less hurdle before you have the ability to not 79 00:03:42,880 --> 00:03:45,520 Speaker 2: even yeah, possibly rent out the space. But I'm even 80 00:03:45,560 --> 00:03:48,120 Speaker 2: thinking to folks who are building a carriage house for 81 00:03:48,160 --> 00:03:49,840 Speaker 2: like their in laws or their parents or something exactly, 82 00:03:49,880 --> 00:03:50,240 Speaker 2: would you. 83 00:03:50,160 --> 00:03:52,600 Speaker 1: Ever consider something like that? Sure in your backyard, most definitely. 84 00:03:52,800 --> 00:03:55,760 Speaker 1: And the great thing is it's easier to get quotes too. Right, 85 00:03:56,040 --> 00:03:57,880 Speaker 1: when you have the plans, you can send them out 86 00:03:57,920 --> 00:03:59,760 Speaker 1: to a few builders instead of going through that process 87 00:03:59,760 --> 00:04:00,800 Speaker 1: paying money officially. 88 00:04:00,800 --> 00:04:01,160 Speaker 2: Get it. 89 00:04:01,160 --> 00:04:03,360 Speaker 1: It slid out, man, It slows things down. And so 90 00:04:03,400 --> 00:04:05,160 Speaker 1: if you're like, listen, I'm ready to pounce. 91 00:04:05,520 --> 00:04:05,840 Speaker 2: I don't know. 92 00:04:05,880 --> 00:04:07,320 Speaker 1: I just love that eighty of you guys doing that, 93 00:04:07,360 --> 00:04:09,240 Speaker 1: and so maybe one of these days we'll talk to 94 00:04:09,320 --> 00:04:11,480 Speaker 1: them on the show. But yeah, definitely go check that out. 95 00:04:11,480 --> 00:04:13,640 Speaker 1: We'll put a link to those free templates in the 96 00:04:13,640 --> 00:04:16,320 Speaker 1: show notes up on our website, howdamoney dot com, of course. 97 00:04:16,480 --> 00:04:18,240 Speaker 1: But Matt, let's move on. Let's get to the Friday Flight. 98 00:04:18,240 --> 00:04:21,760 Speaker 1: It's a quick sampling of stories we found interesting this week. 99 00:04:22,000 --> 00:04:25,280 Speaker 1: Let's start off by talking about non competes. You and 100 00:04:25,320 --> 00:04:27,360 Speaker 1: I disagree on this a little bit. We did last 101 00:04:27,360 --> 00:04:28,719 Speaker 1: time we talked. I don't know if we're on the 102 00:04:28,720 --> 00:04:30,240 Speaker 1: same page now we'll find. 103 00:04:30,120 --> 00:04:33,080 Speaker 2: Out, I guess. But the question is, are no comment? 104 00:04:35,120 --> 00:04:38,200 Speaker 1: Mom and Dad are fighting again? Are non competes going away? 105 00:04:38,480 --> 00:04:41,520 Speaker 1: It looks like they might be. One in five Americans 106 00:04:41,600 --> 00:04:45,240 Speaker 1: are currently affected by non compete many who don't have 107 00:04:45,360 --> 00:04:50,400 Speaker 1: access to IP or trade secrets that are highly specific 108 00:04:50,440 --> 00:04:53,479 Speaker 1: that they can't take that the employer's trying to prevent 109 00:04:53,560 --> 00:04:55,839 Speaker 1: them from taking elsewhere, which is really the impetus for 110 00:04:55,880 --> 00:04:59,080 Speaker 1: non competes in the beginning, it was to protect proprietary 111 00:04:59,120 --> 00:05:02,080 Speaker 1: information and to prevent someone from going down the road 112 00:05:02,120 --> 00:05:05,480 Speaker 1: and giving that to their new employer, harming that business 113 00:05:05,480 --> 00:05:09,479 Speaker 1: in the process. Right, I mostly like this FTC attempted 114 00:05:09,520 --> 00:05:11,919 Speaker 1: ban on non competes because they harm so many workers. 115 00:05:11,960 --> 00:05:16,359 Speaker 1: They hold down wages, limiting personal economic freedom. But I 116 00:05:16,360 --> 00:05:18,160 Speaker 1: will also say, Matt and we had this discussion about 117 00:05:18,160 --> 00:05:21,200 Speaker 1: the blanket ban versus kind of what's happening. Different states 118 00:05:21,240 --> 00:05:23,560 Speaker 1: have different rules around non competes right now, and the 119 00:05:23,600 --> 00:05:26,400 Speaker 1: blanket ban that the FTC is attempting, it doesn't allow 120 00:05:26,440 --> 00:05:28,400 Speaker 1: for some of the nuance in at least a few 121 00:05:28,440 --> 00:05:31,080 Speaker 1: of the professions where non competes do make at least 122 00:05:31,200 --> 00:05:35,000 Speaker 1: some sense. And so yeah, it's true that the FTC's 123 00:05:35,040 --> 00:05:37,240 Speaker 1: authority to do this is questionable. Also kind of like 124 00:05:37,240 --> 00:05:40,599 Speaker 1: the president's attempt at for giving student loans. That is 125 00:05:40,640 --> 00:05:42,480 Speaker 1: going to be part of the discussion moving forward, and 126 00:05:42,560 --> 00:05:45,240 Speaker 1: part of we'll see how this plays out from the 127 00:05:45,279 --> 00:05:48,400 Speaker 1: legal aspect. From legal side of things, but for now, 128 00:05:48,680 --> 00:05:52,600 Speaker 1: non competes are massively overused. They particularly harm low wage workers. 129 00:05:52,880 --> 00:05:55,159 Speaker 1: And we would just say to you whether or not. 130 00:05:55,200 --> 00:05:57,800 Speaker 1: This goes through all the way. Be careful signing a 131 00:05:57,839 --> 00:06:00,400 Speaker 1: noncompete because it can cause real harm to your career 132 00:06:00,760 --> 00:06:01,920 Speaker 1: into your personal finances. 133 00:06:01,920 --> 00:06:05,240 Speaker 2: Sure yeah, okay, so another government action that's going to 134 00:06:05,279 --> 00:06:07,440 Speaker 2: impact your personal fight argue on this one for a while, 135 00:06:07,680 --> 00:06:11,279 Speaker 2: I said, no comment. Okay, I mean I still disagree. 136 00:06:11,320 --> 00:06:13,960 Speaker 2: I still think it should be something that is negotiated, 137 00:06:13,960 --> 00:06:16,719 Speaker 2: that's on the bargaining table between employers and employees, even 138 00:06:16,760 --> 00:06:19,480 Speaker 2: sandwich makers. And but that's well, that's the thing I 139 00:06:19,560 --> 00:06:22,960 Speaker 2: do see a potential discussion around. I don't know if 140 00:06:23,000 --> 00:06:25,320 Speaker 2: I see a need yet for it, but for individuals 141 00:06:25,520 --> 00:06:27,840 Speaker 2: who may not be informed, like I guess bottle mind, 142 00:06:27,839 --> 00:06:30,040 Speaker 2: there's like a collective action problem. And so you might 143 00:06:30,080 --> 00:06:32,640 Speaker 2: have like a single person who's saying, well, that's not 144 00:06:32,680 --> 00:06:35,160 Speaker 2: something I'm going to be a part of, but collectively 145 00:06:35,520 --> 00:06:39,000 Speaker 2: I see where that could provide some help. But so 146 00:06:39,040 --> 00:06:42,440 Speaker 2: we're kind of we're going to continue a government theme 147 00:06:42,520 --> 00:06:46,320 Speaker 2: because financial advisors they're going to be held to a 148 00:06:46,360 --> 00:06:51,480 Speaker 2: fiduciary standard starting in late September of this year. Many 149 00:06:51,520 --> 00:06:55,200 Speaker 2: advisors do this of their own accord already, but certainly 150 00:06:55,279 --> 00:06:57,800 Speaker 2: not all of them. And finding an advisor. It can 151 00:06:57,839 --> 00:07:00,919 Speaker 2: still it can still feel like swimming through like confessed waters. 152 00:07:01,240 --> 00:07:03,640 Speaker 2: And if you take the wrong route, if you are 153 00:07:03,640 --> 00:07:06,440 Speaker 2: swimming in the wrong ocean, you get your leg bitting off. 154 00:07:06,440 --> 00:07:09,640 Speaker 2: You've got an open wound. And that's basically because of 155 00:07:09,760 --> 00:07:12,320 Speaker 2: all of the phase that you're going to incur and 156 00:07:12,480 --> 00:07:15,680 Speaker 2: the fiduciary standards. It's one that puts advisors on the 157 00:07:15,680 --> 00:07:18,360 Speaker 2: same footing basically as doctors, right where the first rule 158 00:07:18,440 --> 00:07:21,280 Speaker 2: is essentially to do no harm. And up until now, 159 00:07:21,520 --> 00:07:24,240 Speaker 2: advisors they've been able to put their own interests above 160 00:07:24,400 --> 00:07:27,200 Speaker 2: yours as the client, where they're you know, they have 161 00:07:27,280 --> 00:07:30,160 Speaker 2: the ability to sell you products and maybe they might 162 00:07:30,160 --> 00:07:32,360 Speaker 2: be able to invest your dollars in ways that aren't 163 00:07:32,400 --> 00:07:35,000 Speaker 2: necessarily best for you. And that's not going to be 164 00:07:35,040 --> 00:07:35,600 Speaker 2: the case anymore. 165 00:07:35,680 --> 00:07:38,600 Speaker 1: Yeah, yeah, Instead of saying, oh, yeah, you should totally 166 00:07:38,640 --> 00:07:40,440 Speaker 1: be in vou like Matt and Joel talk about, because 167 00:07:40,640 --> 00:07:43,040 Speaker 1: the low costs and the high diversification that you're going 168 00:07:43,120 --> 00:07:44,840 Speaker 1: to have, it's like, well, why don't you go in 169 00:07:44,840 --> 00:07:47,480 Speaker 1: actually some of these other funds because they don't cost 170 00:07:47,520 --> 00:07:50,000 Speaker 1: a lot more money, and that pads my bottom line 171 00:07:50,160 --> 00:07:55,600 Speaker 1: and that it's a problem because we're talking about the 172 00:07:55,680 --> 00:07:57,960 Speaker 1: advisor wants one thing, you want another thing. And if 173 00:07:57,960 --> 00:08:01,160 Speaker 1: they're not held to a standard that requires them to 174 00:08:01,200 --> 00:08:03,480 Speaker 1: do what's in your best interest, at least some of them, 175 00:08:04,320 --> 00:08:07,200 Speaker 1: a decent majority of them, in fact, are doing the opposite. 176 00:08:07,200 --> 00:08:09,360 Speaker 1: They're doing what's in their best interests, not yours. And 177 00:08:09,400 --> 00:08:13,320 Speaker 1: this rule, Matt, what I found interesting, applies to insurance 178 00:08:13,320 --> 00:08:16,760 Speaker 1: agents too, which has long been a segment of advice 179 00:08:16,880 --> 00:08:20,480 Speaker 1: in sales where I'm gonna say murky advice was part 180 00:08:20,520 --> 00:08:23,000 Speaker 1: for the course, think about high cost annuities, right. This 181 00:08:23,360 --> 00:08:26,840 Speaker 1: rule is I think maybe single handedly going to wipe 182 00:08:26,840 --> 00:08:29,280 Speaker 1: out at least the worst kinds of annuities that people 183 00:08:29,400 --> 00:08:33,880 Speaker 1: are often sold. They're approached, they're approached by insurance salespeople with. 184 00:08:34,520 --> 00:08:37,319 Speaker 1: It also applies to anyone giving one time advice, right, 185 00:08:37,360 --> 00:08:39,560 Speaker 1: such as rolling over your four oh one k to 186 00:08:39,600 --> 00:08:43,120 Speaker 1: an IRA. And this shift has been tried before the 187 00:08:43,200 --> 00:08:45,480 Speaker 1: can was kicked down the road. It blew up under 188 00:08:45,480 --> 00:08:48,439 Speaker 1: the last administration. Not everyone needs an advisor, of course, 189 00:08:48,480 --> 00:08:51,360 Speaker 1: I think it bears mentioning, especially folks in the wealth 190 00:08:51,360 --> 00:08:53,600 Speaker 1: building phase of their lives who need to focus on 191 00:08:53,640 --> 00:08:56,160 Speaker 1: socking away as much money as possible. Maybe those thousands 192 00:08:56,160 --> 00:08:58,400 Speaker 1: of dollars a year you could could or might spend 193 00:08:58,440 --> 00:09:00,200 Speaker 1: on that advisor will be better off going into your 194 00:09:00,240 --> 00:09:04,240 Speaker 1: own retirement accounts instead. But this is good news for 195 00:09:04,440 --> 00:09:06,960 Speaker 1: if or when you do decide to hire someone. It 196 00:09:06,960 --> 00:09:10,800 Speaker 1: doesn't negate your own need for financial education, but working 197 00:09:10,800 --> 00:09:13,520 Speaker 1: with an advisor who is a fiduciary, who is obligated 198 00:09:13,520 --> 00:09:16,520 Speaker 1: to put your interest first is crucial and making that 199 00:09:16,559 --> 00:09:18,600 Speaker 1: the standard, I think is the right thing to do. 200 00:09:19,240 --> 00:09:22,720 Speaker 2: Yeah. I love fiduciaries, right, and we talk about fiduciaries 201 00:09:22,760 --> 00:09:24,080 Speaker 2: all the time here on the show, But I just 202 00:09:24,080 --> 00:09:26,160 Speaker 2: don't like the fact that it's being forced. I still 203 00:09:26,200 --> 00:09:28,839 Speaker 2: think that folks should have the option to crappy ones. 204 00:09:29,000 --> 00:09:31,320 Speaker 2: Yeah literally, I mean, well, it's not that it's crappy. 205 00:09:31,480 --> 00:09:33,920 Speaker 2: What do we quantify or qualify as crappy something that's 206 00:09:33,920 --> 00:09:36,080 Speaker 2: more expensive. But just because something is more expensive and 207 00:09:36,120 --> 00:09:39,920 Speaker 2: it doesn't it's not the leanest, most efficient vehicle, doesn't 208 00:09:39,960 --> 00:09:41,960 Speaker 2: mean that it can't be in the benefit of somebody 209 00:09:41,960 --> 00:09:44,360 Speaker 2: who's paying for it, and the benefit obviously of somebody 210 00:09:44,360 --> 00:09:46,960 Speaker 2: who's selling it. I think optionality is good. It makes 211 00:09:46,960 --> 00:09:49,440 Speaker 2: me think of one of my college roommates, has a 212 00:09:49,480 --> 00:09:53,760 Speaker 2: more traditional financial advisor, and he does things like go 213 00:09:53,800 --> 00:09:56,840 Speaker 2: and play golf at exclusive golf courses with this guy, 214 00:09:56,880 --> 00:09:58,560 Speaker 2: and so there's more of a relationship there, Like there 215 00:09:58,600 --> 00:10:01,120 Speaker 2: are these additional perks that are tough to put your 216 00:10:01,120 --> 00:10:04,000 Speaker 2: finger on. I'll have our relationship with a fee only finuciaria. 217 00:10:04,040 --> 00:10:06,760 Speaker 2: So he he has that because he pays more to 218 00:10:06,880 --> 00:10:09,320 Speaker 2: that guy, to that guy, and so like he's an. 219 00:10:09,280 --> 00:10:11,360 Speaker 1: Extra thousands of dollars he's paying, he pays off in 220 00:10:11,400 --> 00:10:12,360 Speaker 1: an extra one hundred. 221 00:10:12,160 --> 00:10:14,120 Speaker 2: Of dollars in golf course outings. Yes, I mean, I 222 00:10:14,120 --> 00:10:16,319 Speaker 2: mean it doesn't make a bad deal. Doesn't make sense 223 00:10:16,360 --> 00:10:18,120 Speaker 2: to me. I wouldn't do that. I'm not spending my 224 00:10:18,160 --> 00:10:20,720 Speaker 2: dollars that way. I if I wanted to pay for 225 00:10:20,760 --> 00:10:23,080 Speaker 2: a financial advisor, would go see a fiduciary. But like, 226 00:10:23,120 --> 00:10:25,280 Speaker 2: just because I wouldn't want to do that doesn't mean 227 00:10:25,320 --> 00:10:27,280 Speaker 2: that I think other folks shouldn't have that option. 228 00:10:27,360 --> 00:10:29,439 Speaker 1: Like it makes me think most people don't know that 229 00:10:29,800 --> 00:10:32,560 Speaker 1: their advisor isn't they think that their advisor is supposed 230 00:10:32,600 --> 00:10:33,480 Speaker 1: to do what's best for them. 231 00:10:33,640 --> 00:10:35,839 Speaker 2: Most people underestimating no. I feel like a lot of 232 00:10:35,880 --> 00:10:37,800 Speaker 2: folks who have the money to pay for an advisor. 233 00:10:37,840 --> 00:10:40,000 Speaker 2: They're kind of like, well, I know, but like all 234 00:10:40,080 --> 00:10:43,520 Speaker 2: my buddies from my fraternity back in school from twenty 235 00:10:43,600 --> 00:10:44,320 Speaker 2: they use this guy. 236 00:10:44,559 --> 00:10:46,120 Speaker 1: He takes care of us exactly. That's the kind of 237 00:10:46,160 --> 00:10:47,600 Speaker 1: thing that he takes care of us. But they don't 238 00:10:47,640 --> 00:10:49,720 Speaker 1: realize the hidden vies that they're paying and how much 239 00:10:49,760 --> 00:10:51,480 Speaker 1: it might be costing them. And maybe there's a better 240 00:10:51,559 --> 00:10:52,120 Speaker 1: route out there. 241 00:10:52,080 --> 00:10:53,960 Speaker 2: Yeah, possibly, but like it makes me think of like 242 00:10:54,000 --> 00:10:55,760 Speaker 2: even like airlines, Like it makes me think of like 243 00:10:55,800 --> 00:10:58,080 Speaker 2: flying first class or business class we're talking about here, 244 00:10:58,080 --> 00:10:59,959 Speaker 2: and just so like I don't fly first class, don't. 245 00:11:00,000 --> 00:11:02,640 Speaker 2: I don't pay for softer seats or whatever they get 246 00:11:02,720 --> 00:11:05,200 Speaker 2: up there. It's not the most affordable way to fly, 247 00:11:05,400 --> 00:11:07,880 Speaker 2: but I'd like that that's an option for some folks 248 00:11:08,120 --> 00:11:09,400 Speaker 2: if they want to pay that that's because we know 249 00:11:09,440 --> 00:11:11,240 Speaker 2: how much it costs. And like I said, I think 250 00:11:11,280 --> 00:11:13,960 Speaker 2: the problem with non fiduciary advisors is most people don't 251 00:11:14,000 --> 00:11:16,360 Speaker 2: realize if you were to ask one hundred people out 252 00:11:16,360 --> 00:11:18,880 Speaker 2: on the street, what does fiduciary mean, I guarantee you 253 00:11:18,920 --> 00:11:21,480 Speaker 2: maybe three could tell you. And then they would say, 254 00:11:21,480 --> 00:11:23,199 Speaker 2: if you would ask a hundred people who have an advisor, 255 00:11:23,679 --> 00:11:26,559 Speaker 2: how many is your advisor or financial advisor or fiduciary. 256 00:11:26,600 --> 00:11:28,000 Speaker 1: I bet it's a lot more than three. I bet 257 00:11:28,000 --> 00:11:29,800 Speaker 1: like for folks who are actually maybe fifteen out of 258 00:11:29,800 --> 00:11:31,600 Speaker 1: the hundred could tell you whether or not they are. 259 00:11:31,679 --> 00:11:34,440 Speaker 1: And that's just a problem. It's the opaqueness, and I 260 00:11:34,440 --> 00:11:37,599 Speaker 1: think that's part of the issue. It's not as straightforward 261 00:11:37,800 --> 00:11:40,600 Speaker 1: as maybe you're thinking it is. I think there are 262 00:11:40,600 --> 00:11:42,520 Speaker 1: a lot of people who are kind of duped by 263 00:11:42,720 --> 00:11:45,240 Speaker 1: the products and the thing. They think that their advisor's 264 00:11:45,280 --> 00:11:47,200 Speaker 1: doing much best for them, even when they're actually not. 265 00:11:47,720 --> 00:11:50,360 Speaker 2: So you mentioned a second ago that there is still 266 00:11:50,360 --> 00:11:53,199 Speaker 2: a need for us to take responsibility. There's still a 267 00:11:53,280 --> 00:11:57,079 Speaker 2: need for financial education. Aaron Lowry she wrote about retirement 268 00:11:57,200 --> 00:12:00,440 Speaker 2: anxiety over at Bloomberg this week, and she touched something 269 00:12:00,520 --> 00:12:03,080 Speaker 2: that we have before as well, which is a reliance 270 00:12:03,559 --> 00:12:07,480 Speaker 2: on social media for investing advice, and depending on who 271 00:12:07,520 --> 00:12:10,520 Speaker 2: you follow, that could be awful, but she actually broadens 272 00:12:10,559 --> 00:12:15,160 Speaker 2: that out. She broadens her disdain into YouTube and to podcasts, 273 00:12:15,200 --> 00:12:18,840 Speaker 2: which we see as specializing in more like long form 274 00:12:18,880 --> 00:12:22,560 Speaker 2: content that allows for a more thorough discussion, allows for 275 00:12:22,600 --> 00:12:23,720 Speaker 2: some of that necessary nuance. 276 00:12:23,800 --> 00:12:26,480 Speaker 1: Yeah, YouTube and podcasts are not the equivalent of TikTok 277 00:12:26,559 --> 00:12:28,800 Speaker 1: and instagram rails, right, I mean, they're just they're completely 278 00:12:28,840 --> 00:12:31,120 Speaker 1: different things. There's a different amount of time, different ability 279 00:12:31,120 --> 00:12:33,559 Speaker 1: to relay and then absorb information totally. 280 00:12:33,720 --> 00:12:36,040 Speaker 2: Yeah, And so we're just pointing out that she specifically 281 00:12:36,040 --> 00:12:38,840 Speaker 2: says that designing a retirement strategy based on free advice 282 00:12:39,040 --> 00:12:41,600 Speaker 2: is a dangerous plan. But we think that you can 283 00:12:41,640 --> 00:12:45,200 Speaker 2: get a killer free personal finance education. I think the 284 00:12:45,240 --> 00:12:47,960 Speaker 2: best of some of the different podcasts and YouTube creators 285 00:12:48,000 --> 00:12:51,839 Speaker 2: out there, some of the different publishers, like those more consumptive, 286 00:12:52,160 --> 00:12:55,160 Speaker 2: more maybe entertaining forms of media, plus free books from 287 00:12:55,160 --> 00:12:57,320 Speaker 2: the library is likely enough for a lot of folks 288 00:12:57,360 --> 00:13:00,520 Speaker 2: to put together a solid investing plan. So there are 289 00:13:00,520 --> 00:13:02,960 Speaker 2: options out there, and we just don't want a few 290 00:13:03,000 --> 00:13:05,720 Speaker 2: bad apples to necessarily ruin the entire bunch of all 291 00:13:05,760 --> 00:13:07,679 Speaker 2: the folks out there, Like, I mean, who we you know, 292 00:13:07,800 --> 00:13:10,880 Speaker 2: obviously we consider ourselves in that category of providing solid 293 00:13:10,920 --> 00:13:11,880 Speaker 2: financial advice. Yeah. 294 00:13:12,000 --> 00:13:14,640 Speaker 1: And when you lump in all of these different platforms 295 00:13:14,720 --> 00:13:16,680 Speaker 1: together and you make them sound like they're the exact same, 296 00:13:16,720 --> 00:13:19,080 Speaker 1: I think you do a disservice to the great creators 297 00:13:19,080 --> 00:13:22,160 Speaker 1: on some of those platforms. Are there bad crummy people 298 00:13:22,200 --> 00:13:25,120 Speaker 1: giving really awful advice on YouTube? Of course, but like, 299 00:13:25,160 --> 00:13:28,240 Speaker 1: think about the amount of minutes of viewing potential there 300 00:13:28,320 --> 00:13:31,360 Speaker 1: is there exists on YouTube. It's astronomical, so of course 301 00:13:31,360 --> 00:13:32,800 Speaker 1: they are going to be bad people. But then it 302 00:13:32,840 --> 00:13:35,520 Speaker 1: makes me think of Marco from Whiteboard Finance, who we 303 00:13:35,559 --> 00:13:38,920 Speaker 1: had on recently. His YouTube channel has been around for many, 304 00:13:38,920 --> 00:13:41,640 Speaker 1: many years now and he's been doing great work, and 305 00:13:41,679 --> 00:13:44,000 Speaker 1: we mostly talked about bigcoin with him, But go back 306 00:13:44,000 --> 00:13:47,400 Speaker 1: and look at like the number of money topics he's covered. 307 00:13:47,520 --> 00:13:50,680 Speaker 1: It's wide rare or just breat sing from minority mindset. 308 00:13:50,720 --> 00:13:53,760 Speaker 1: We've featured so many creators in these more long form 309 00:13:53,840 --> 00:13:56,160 Speaker 1: spaces on this podcast. I love folks on YouTube who 310 00:13:56,200 --> 00:13:58,200 Speaker 1: are doing awesome stuff, so to lump all those in 311 00:13:58,280 --> 00:14:02,199 Speaker 1: together seems really silly. And yes, you can do great 312 00:14:02,920 --> 00:14:05,360 Speaker 1: with free advice if you're picking the right people to 313 00:14:05,400 --> 00:14:08,959 Speaker 1: listen to. All right, let's do one more government related 314 00:14:09,000 --> 00:14:10,560 Speaker 1: story for today, Matt, because. 315 00:14:10,360 --> 00:14:12,000 Speaker 2: This is a thing for this episode. Big government. 316 00:14:12,080 --> 00:14:13,960 Speaker 1: Yeah, but there's so much that impact your money with 317 00:14:13,960 --> 00:14:15,720 Speaker 1: what's happening with some of these government rulings, and a 318 00:14:15,720 --> 00:14:17,360 Speaker 1: lot came down really just in the past week. So 319 00:14:17,400 --> 00:14:21,040 Speaker 1: if you've got the travel bug after listening to Wednesday's episode, which. 320 00:14:20,880 --> 00:14:22,000 Speaker 2: How could you not? After that? 321 00:14:22,360 --> 00:14:25,760 Speaker 1: The DOT, the Department of Transportation is implementing new rules 322 00:14:25,800 --> 00:14:27,840 Speaker 1: for airlines that are going to look a little bit 323 00:14:27,840 --> 00:14:30,320 Speaker 1: more like what's going on over in Europe. Europe has 324 00:14:30,360 --> 00:14:33,560 Speaker 1: long had traveler friendly rules that the airlines have had 325 00:14:33,600 --> 00:14:36,480 Speaker 1: to abide by, Like, for instance, if your flight is 326 00:14:36,480 --> 00:14:37,960 Speaker 1: delayed over a certain amount of hours, I want to 327 00:14:37,960 --> 00:14:41,520 Speaker 1: say it's four, you get a full refund. And I've 328 00:14:41,560 --> 00:14:43,760 Speaker 1: known a lot of US friends and family who have 329 00:14:43,800 --> 00:14:46,640 Speaker 1: been able to snag those significant dollars back in their 330 00:14:46,640 --> 00:14:51,480 Speaker 1: lives because of this European rule protecting passengers. So what 331 00:14:51,520 --> 00:14:54,560 Speaker 1: are the changes here in the United States. Well, the 332 00:14:54,600 --> 00:14:58,240 Speaker 1: word delay has been redefined. It used to be this unspecified, 333 00:14:58,320 --> 00:15:01,120 Speaker 1: vague definition and so oh, if it's delayed, then you 334 00:15:01,160 --> 00:15:04,360 Speaker 1: owe passengers something. Well, delay is now to fined US 335 00:15:04,360 --> 00:15:07,280 Speaker 1: three hours for a domestic trip and six hours for 336 00:15:07,360 --> 00:15:08,440 Speaker 1: an international one. 337 00:15:08,640 --> 00:15:09,120 Speaker 2: And when you. 338 00:15:09,120 --> 00:15:13,200 Speaker 1: Encounter a delay now or a change flight or delayed baggage, 339 00:15:13,600 --> 00:15:16,120 Speaker 1: you don't have to fight for compensation. You'll get an 340 00:15:16,120 --> 00:15:19,760 Speaker 1: automatic refund within twenty days. And there are also more 341 00:15:19,800 --> 00:15:23,000 Speaker 1: requirements for transparency of fees before you book your flight, 342 00:15:23,360 --> 00:15:25,480 Speaker 1: which transparency is great, and then not to have to 343 00:15:25,960 --> 00:15:28,880 Speaker 1: you know, claw back and call the customer no service 344 00:15:29,000 --> 00:15:32,520 Speaker 1: from the airlines in order to get the refund you 345 00:15:32,600 --> 00:15:36,120 Speaker 1: deserve it. I don't know, sounds helpful, sounds nice for yeah, 346 00:15:36,280 --> 00:15:37,520 Speaker 1: flyers everywhere, totally. 347 00:15:37,560 --> 00:15:39,320 Speaker 2: Yeah. And here's the thing. We don't want the airlines 348 00:15:39,400 --> 00:15:41,200 Speaker 2: to do away with a fees. So, like we're talking 349 00:15:41,240 --> 00:15:44,080 Speaker 2: about earlier about the fiduciaries, it's okay that they are there, 350 00:15:44,200 --> 00:15:46,360 Speaker 2: but let's make sure that they are a bit more transparent, 351 00:15:46,400 --> 00:15:47,280 Speaker 2: they're little bit more clear. 352 00:15:47,320 --> 00:15:49,480 Speaker 1: You and I were about to fly on Frontier and 353 00:15:49,600 --> 00:15:52,320 Speaker 1: we picked them because the cost of the ticket was 354 00:15:52,320 --> 00:15:53,840 Speaker 1: was lower. But I was literally checking in for the 355 00:15:53,880 --> 00:15:56,240 Speaker 1: flight this morning and I looked at all the fees 356 00:15:56,240 --> 00:15:58,360 Speaker 1: they charged for all sorts of silly things and how 357 00:15:58,360 --> 00:15:59,040 Speaker 1: expensive it is. 358 00:15:59,080 --> 00:16:01,400 Speaker 2: And one you talking about all the optional stuff. Yeah, yeah, 359 00:16:01,400 --> 00:16:04,480 Speaker 2: all the optional stuff. So like most people are sure 360 00:16:04,520 --> 00:16:06,480 Speaker 2: you don't want to bring a carry on back, right 361 00:16:06,480 --> 00:16:09,960 Speaker 2: for sixty million dollars, Sure, I will maintain that personal item, 362 00:16:10,040 --> 00:16:11,880 Speaker 2: that's right, that I have shoved all of my clothes into, 363 00:16:12,320 --> 00:16:12,800 Speaker 2: that's right. 364 00:16:12,880 --> 00:16:15,400 Speaker 1: But we knew that eyes wide open going into it. 365 00:16:15,440 --> 00:16:17,560 Speaker 1: We're like, oh, we could book the seven hundred fifty 366 00:16:17,560 --> 00:16:19,120 Speaker 1: dollars Delta flight, or we can book the four hundred 367 00:16:19,120 --> 00:16:21,240 Speaker 1: dollars Frontier flight. Yeah, and then jump through the hoops 368 00:16:21,280 --> 00:16:23,040 Speaker 1: and you know what, still pay four hundred. 369 00:16:22,760 --> 00:16:24,600 Speaker 2: Bucks, which is why, again, kind of going back to 370 00:16:24,800 --> 00:16:27,800 Speaker 2: the h I love the optionality that all of these 371 00:16:27,840 --> 00:16:30,360 Speaker 2: different providers or in this case, different airlines, that they're 372 00:16:30,400 --> 00:16:32,560 Speaker 2: able to offer folks because you can score the best 373 00:16:32,600 --> 00:16:35,400 Speaker 2: overall deal by being proly sensitive jumping through some of 374 00:16:35,120 --> 00:16:38,080 Speaker 2: the different hoops that they require of you. And but 375 00:16:38,240 --> 00:16:40,520 Speaker 2: I think some of the sneaky fees are also the 376 00:16:40,600 --> 00:16:43,480 Speaker 2: problem as well, and just kind of the way they are, 377 00:16:43,880 --> 00:16:46,000 Speaker 2: the way the terms are laid out in the language 378 00:16:46,000 --> 00:16:47,360 Speaker 2: I guess that they use, and so I think making 379 00:16:47,360 --> 00:16:50,160 Speaker 2: the airlines list them out from the center in an 380 00:16:50,200 --> 00:16:52,640 Speaker 2: age where you could be charged for just a slew 381 00:16:52,920 --> 00:16:55,600 Speaker 2: of random things, that's certainly more consumer friendly. And I'm 382 00:16:55,680 --> 00:16:58,600 Speaker 2: very happy to see that they have clearly defined what 383 00:16:58,640 --> 00:17:00,400 Speaker 2: a delay is as well, because that's one of the 384 00:17:00,960 --> 00:17:03,000 Speaker 2: and the fact too that the refunds are they're gonna 385 00:17:03,000 --> 00:17:05,080 Speaker 2: they're gonna be cash refunds. As well as opposed to 386 00:17:05,400 --> 00:17:08,600 Speaker 2: credits that go towards maybe an airline that you rarely 387 00:17:08,600 --> 00:17:11,440 Speaker 2: fly with that ultimately never get taken advantage or yeah, 388 00:17:11,560 --> 00:17:11,920 Speaker 2: you get. 389 00:17:11,840 --> 00:17:13,680 Speaker 1: To benefit expire within a year or something like that, 390 00:17:13,760 --> 00:17:15,480 Speaker 1: and you're like, well, crap, I'm I'm not planning on 391 00:17:15,520 --> 00:17:17,840 Speaker 1: going on another trip in the next year, because not 392 00:17:17,920 --> 00:17:20,480 Speaker 1: everybody travels on an airplane every single year. So no, 393 00:17:20,560 --> 00:17:22,680 Speaker 1: I agree with that, And I think transparency is key here. 394 00:17:22,840 --> 00:17:25,240 Speaker 1: It's it's not requiring them not to charge certain fees. 395 00:17:25,280 --> 00:17:26,960 Speaker 1: It's saying, listen, you have to be transparent about this. 396 00:17:27,000 --> 00:17:29,200 Speaker 1: And maybe going back to the fiduciary discussion, maybe that 397 00:17:29,280 --> 00:17:31,320 Speaker 1: was the right thing to do, to say, hey, actually 398 00:17:31,600 --> 00:17:33,240 Speaker 1: you don't have to do this, but you've got to 399 00:17:33,240 --> 00:17:35,520 Speaker 1: disclose this, this, and this on the front end if 400 00:17:35,560 --> 00:17:37,639 Speaker 1: because that's the problem is most people don't realize, and 401 00:17:37,680 --> 00:17:39,439 Speaker 1: I think if you had to tell people that, they 402 00:17:39,480 --> 00:17:43,000 Speaker 1: might run away screaming before they engage in a relationship 403 00:17:43,000 --> 00:17:45,359 Speaker 1: with you. Sure, we've got more to get to on 404 00:17:45,520 --> 00:17:49,200 Speaker 1: this episode, including a budgeting method that scares the pants 405 00:17:49,240 --> 00:17:51,239 Speaker 1: off me. We'll get to that and more right after this. 406 00:17:59,119 --> 00:18:00,640 Speaker 2: All right, we are back. We've got more to get 407 00:18:00,640 --> 00:18:02,760 Speaker 2: to we're to talk about hospital bills, we're going to 408 00:18:02,760 --> 00:18:05,640 Speaker 2: talk about cars. But first, Joel, we got our ludicrous 409 00:18:05,720 --> 00:18:08,240 Speaker 2: headline of the week, and like you alluded to before 410 00:18:08,280 --> 00:18:10,680 Speaker 2: the break, it has to do with budgeting. This one 411 00:18:10,800 --> 00:18:15,000 Speaker 2: is from Kiplinger and the headline reads the new sixty 412 00:18:15,000 --> 00:18:19,840 Speaker 2: to thirty ten budgeting method. It is not good. And 413 00:18:20,040 --> 00:18:23,280 Speaker 2: it might sound somewhat familiar, right because in the past 414 00:18:23,320 --> 00:18:26,520 Speaker 2: we've talked about the fifty thirty twenty budgets, which we 415 00:18:26,720 --> 00:18:28,840 Speaker 2: don't mind. Yeah, this is an iteration on that, but 416 00:18:28,920 --> 00:18:32,240 Speaker 2: it is far worse because in this method you allocate 417 00:18:32,400 --> 00:18:36,800 Speaker 2: sixty percent of your pay towards necessities, thirty percent towards 418 00:18:36,920 --> 00:18:39,840 Speaker 2: once still just like our the old one, but then 419 00:18:39,880 --> 00:18:43,760 Speaker 2: only ten percent towards saving and debt paydown. And so 420 00:18:43,920 --> 00:18:46,920 Speaker 2: essentially they're in my mind, they're almost allocating or allowing 421 00:18:47,000 --> 00:18:48,960 Speaker 2: for us like, oh man, some of the some of 422 00:18:48,960 --> 00:18:51,800 Speaker 2: the necessities of life are costing more. But what do 423 00:18:51,840 --> 00:18:55,880 Speaker 2: you define as a necessity, Because for most folks they're saying, oh, well, housing, 424 00:18:56,240 --> 00:18:58,439 Speaker 2: that's something that's that you've definitely got to pay for. 425 00:18:58,520 --> 00:19:01,800 Speaker 2: But like, man, you've more control over that than you realize. 426 00:19:01,880 --> 00:19:04,600 Speaker 2: And if you've been listening with your ride, I mean it, yes, yeah, 427 00:19:04,680 --> 00:19:07,200 Speaker 2: some gone up. But food, like all of the things 428 00:19:07,200 --> 00:19:09,480 Speaker 2: that people see as non negotiable, it's like, well, you 429 00:19:09,560 --> 00:19:12,240 Speaker 2: have to spend at least this much. I would push 430 00:19:12,240 --> 00:19:14,000 Speaker 2: back and say, you've got more control over that than 431 00:19:14,040 --> 00:19:14,320 Speaker 2: you think. 432 00:19:14,400 --> 00:19:15,960 Speaker 1: There's an article in the Wall Street Journal about all 433 00:19:16,000 --> 00:19:17,439 Speaker 1: the people choosing ALLDI these days. 434 00:19:18,040 --> 00:19:22,560 Speaker 2: Makes me so happy. I love just hearing random conversations, 435 00:19:22,600 --> 00:19:24,920 Speaker 2: just like throughout my life, and I hear someone mentioning 436 00:19:24,920 --> 00:19:27,439 Speaker 2: ALDI and it just makes my heart smile. But if 437 00:19:27,440 --> 00:19:29,600 Speaker 2: you've been listening for any length of time to the 438 00:19:29,640 --> 00:19:32,359 Speaker 2: podcast here, you know that fifteen percent, not ten percent. 439 00:19:32,680 --> 00:19:35,199 Speaker 2: Fifteen percent is the minimum amount that we want you 440 00:19:35,240 --> 00:19:39,880 Speaker 2: to allocate towards saving and towards debt eradication. But honestly, 441 00:19:39,920 --> 00:19:42,040 Speaker 2: even more than that would be ideal. As you are 442 00:19:42,080 --> 00:19:44,840 Speaker 2: trying to achieve your different financial goals, and you know 443 00:19:44,880 --> 00:19:48,160 Speaker 2: everyone's got their own different budgeting methods. Some folks are 444 00:19:48,160 --> 00:19:50,399 Speaker 2: going to prefer apps, or you know, some folks are 445 00:19:50,400 --> 00:19:53,520 Speaker 2: going to prefer diving into Excel, getting into getting messy 446 00:19:53,560 --> 00:19:56,960 Speaker 2: with the spreadsheets. No worries either way as far as 447 00:19:57,000 --> 00:19:59,359 Speaker 2: the method that you are taking. But if you're savings 448 00:19:59,359 --> 00:20:01,520 Speaker 2: floor is too low, I mean, that's just going to 449 00:20:01,520 --> 00:20:04,760 Speaker 2: solw your progress to achieve those financial goals. And you know, 450 00:20:04,800 --> 00:20:07,840 Speaker 2: this might be a necessary starting point if maybe you're 451 00:20:07,840 --> 00:20:10,320 Speaker 2: just getting your finances together for the very first time, 452 00:20:10,359 --> 00:20:13,440 Speaker 2: but it's just not a great long term budgeting approach, 453 00:20:13,520 --> 00:20:16,720 Speaker 2: and we just don't like seeing folks under saving for 454 00:20:16,840 --> 00:20:17,280 Speaker 2: their futures. 455 00:20:17,320 --> 00:20:20,479 Speaker 1: Yeah, the author of this article in Kiplinger was kind 456 00:20:20,480 --> 00:20:22,399 Speaker 1: of like, yeah, this might, this isn't, This isn't a 457 00:20:22,400 --> 00:20:24,159 Speaker 1: bad approach for a whole lot of people, and might 458 00:20:24,240 --> 00:20:29,200 Speaker 1: takes the opposite, like, no, if Americans have poor savings 459 00:20:29,200 --> 00:20:32,439 Speaker 1: habits and we need to challenge, we need the challenge 460 00:20:32,480 --> 00:20:34,480 Speaker 1: to do better. And the fact is that's what this 461 00:20:34,520 --> 00:20:36,399 Speaker 1: show is all about. It's helping you find the ways 462 00:20:36,720 --> 00:20:40,040 Speaker 1: to save invest wisely so that you can increase your 463 00:20:40,080 --> 00:20:42,680 Speaker 1: savings rates so that you can develop more and more 464 00:20:43,080 --> 00:20:45,720 Speaker 1: greater levels of financial security along the way, not having 465 00:20:45,720 --> 00:20:48,040 Speaker 1: to worry about money as much. And yeah, if you 466 00:20:48,359 --> 00:20:50,720 Speaker 1: are if you bring that down that savings rate and 467 00:20:50,760 --> 00:20:52,960 Speaker 1: the debt payoff rate to ten percent, if that's kind 468 00:20:53,000 --> 00:20:54,800 Speaker 1: of your goal, you're just not going to get where 469 00:20:54,800 --> 00:20:56,600 Speaker 1: you're trying to go as quickly as we'd like to 470 00:20:56,600 --> 00:20:58,760 Speaker 1: see you get there, and I'm sure as likely as 471 00:20:58,840 --> 00:21:00,000 Speaker 1: much as you'd like to get there as well. 472 00:21:00,880 --> 00:21:01,080 Speaker 2: Matt. 473 00:21:01,160 --> 00:21:03,560 Speaker 1: Let's talk about Facebook for a second. We talked about 474 00:21:03,560 --> 00:21:07,320 Speaker 1: Facebook Marketplace and how the kids are hopping on Facebook marketplaces. 475 00:21:07,359 --> 00:21:10,680 Speaker 1: They're one and only thing they like about Facebook these days. 476 00:21:10,880 --> 00:21:13,480 Speaker 1: And I like Facebook Marketplace too. Trying to sell a 477 00:21:13,520 --> 00:21:16,080 Speaker 1: few things on there right now. Well, no, like what 478 00:21:16,720 --> 00:21:19,560 Speaker 1: a swivel chair right now? Yeah, we're trying to get 479 00:21:19,640 --> 00:21:22,359 Speaker 1: rid of some furniture maybe in the sunroom, which kind 480 00:21:22,400 --> 00:21:23,480 Speaker 1: of downsize a. 481 00:21:23,480 --> 00:21:26,239 Speaker 2: Little bit or outsize just a clear clear some clear out, 482 00:21:26,280 --> 00:21:28,520 Speaker 2: some clutter sprin cleaning time. Baby. I like it, you know, will. 483 00:21:28,600 --> 00:21:31,440 Speaker 1: New statistics reveal that a huge chunk of listings are 484 00:21:31,880 --> 00:21:35,160 Speaker 1: complete scams, which is particularly true in a few product categories. 485 00:21:35,160 --> 00:21:37,760 Speaker 1: So thirty four percent of listings overall were found to 486 00:21:37,760 --> 00:21:40,160 Speaker 1: be fraudulent, which is kind of shocking. You're like, holy crap, 487 00:21:40,240 --> 00:21:41,720 Speaker 1: one in three things listed on Facebook. 488 00:21:41,760 --> 00:21:43,600 Speaker 2: I feel like I have noticed that over like back 489 00:21:43,640 --> 00:21:46,000 Speaker 2: in the day, like five six years ago, it wasn't 490 00:21:46,000 --> 00:21:49,480 Speaker 2: that bad, It really wasn't, But lately it seems a little. 491 00:21:49,280 --> 00:21:51,520 Speaker 1: Now there's more ads, a little scam here, and more scams, 492 00:21:51,520 --> 00:21:54,359 Speaker 1: and so Facebook marketplace is becoming a tougher place to turn. 493 00:21:54,640 --> 00:21:56,480 Speaker 1: Maybe we're all going to go back to Craigslist. 494 00:21:56,040 --> 00:21:56,960 Speaker 2: At some point. I don't know. 495 00:21:57,680 --> 00:21:59,359 Speaker 1: But the top fake listings, by the way, you should 496 00:21:59,359 --> 00:22:01,640 Speaker 1: be aware of this are four products in the phone 497 00:22:01,680 --> 00:22:06,880 Speaker 1: category shoes, clothing, games, consoles, and small electronics, which does 498 00:22:06,880 --> 00:22:10,639 Speaker 1: not surprise me. Those are that makes sense, like you're 499 00:22:10,680 --> 00:22:13,440 Speaker 1: gonna get scam phone sellers or if you're looking for 500 00:22:13,960 --> 00:22:16,200 Speaker 1: not like somebody's like old pair sneakers for like ten bucks, 501 00:22:16,240 --> 00:22:18,840 Speaker 1: but if you're looking for the cool nikes that are 502 00:22:19,280 --> 00:22:21,360 Speaker 1: that are hard to find, you're going to get scammed 503 00:22:21,600 --> 00:22:24,280 Speaker 1: more often in those categories than anything else. And so 504 00:22:24,880 --> 00:22:28,240 Speaker 1: this comes from a legit study where researchers they reached 505 00:22:28,240 --> 00:22:31,040 Speaker 1: out to different posters on Facebook and what they found 506 00:22:31,359 --> 00:22:35,640 Speaker 1: was that these fraudulent sellers were using tactics that criminals 507 00:22:35,760 --> 00:22:39,359 Speaker 1: use like directing, directing you to fake websites, refusing to 508 00:22:39,640 --> 00:22:41,840 Speaker 1: allow you to view the item in person, and wanting 509 00:22:41,880 --> 00:22:44,119 Speaker 1: payment up front. So I think if they're if you're 510 00:22:44,160 --> 00:22:46,800 Speaker 1: talking to someone on Facebook about an item that you're 511 00:22:47,040 --> 00:22:49,440 Speaker 1: interested in buying after seeing it on marketplace. Those are 512 00:22:49,440 --> 00:22:51,600 Speaker 1: all red flags you want to be aware of when 513 00:22:51,840 --> 00:22:55,000 Speaker 1: you're kind of looking around, if you're being directed elsewhere, 514 00:22:55,160 --> 00:22:57,399 Speaker 1: or yeah, they don't want to let you see the 515 00:22:57,440 --> 00:23:00,000 Speaker 1: item in person. Those are all red flags, and you're like, listen, 516 00:23:00,000 --> 00:23:01,520 Speaker 1: I'm done with you. This is totally a scam. 517 00:23:01,560 --> 00:23:04,639 Speaker 2: That's right, man. Let's talk about cars. Because Consumer Reports 518 00:23:04,640 --> 00:23:08,800 Speaker 2: they released their list of the cheapest cars to maintain, 519 00:23:09,600 --> 00:23:13,879 Speaker 2: and the least expensive is drum roll please, Tesla Boom, 520 00:23:14,200 --> 00:23:18,560 Speaker 2: followed closely by Lincoln and Buick. And first of all, 521 00:23:18,560 --> 00:23:21,280 Speaker 2: I think it's no surprise that an EVY only car 522 00:23:21,320 --> 00:23:23,399 Speaker 2: manufacturer wins this one, because I think that's one of 523 00:23:23,400 --> 00:23:25,639 Speaker 2: the perks of an ev right, the fact that they 524 00:23:25,680 --> 00:23:30,520 Speaker 2: require so little maintenance basically like glorified golf carts and 525 00:23:30,760 --> 00:23:33,280 Speaker 2: no belts or hoses or censors and all that. Exactly, 526 00:23:33,280 --> 00:23:36,280 Speaker 2: you just got like tires, I mean truly, like they say, right, 527 00:23:36,600 --> 00:23:38,280 Speaker 2: And so if you buy a Tesla, you can expect 528 00:23:38,280 --> 00:23:40,720 Speaker 2: to shell out just five hundred and eighty dollars and 529 00:23:40,800 --> 00:23:43,720 Speaker 2: maintenance costs in the first five years of ownership, which 530 00:23:43,760 --> 00:23:45,200 Speaker 2: is kind of mind blowing, and then. 531 00:23:45,160 --> 00:23:47,639 Speaker 1: Only probably literally just one new set of times. 532 00:23:48,080 --> 00:23:51,200 Speaker 2: Yeah, uh, and then it's only something like four thousand 533 00:23:51,240 --> 00:23:55,399 Speaker 2: dollars in the first decade of ownership overall, and you 534 00:23:55,640 --> 00:23:58,159 Speaker 2: compare that to buying a new land Rover. They're the 535 00:23:58,280 --> 00:24:00,000 Speaker 2: by the way, the worst ones on the list, which 536 00:24:00,119 --> 00:24:03,280 Speaker 2: is going to cost you nearly twenty thousand dollars over 537 00:24:03,359 --> 00:24:07,400 Speaker 2: a decade to maintain. Not like this. These aren't car 538 00:24:07,440 --> 00:24:11,119 Speaker 2: payments or anything else, like literally just to maintain that sinking, just. 539 00:24:11,160 --> 00:24:12,879 Speaker 1: Taking it into the shop. And by the way, that 540 00:24:13,000 --> 00:24:15,280 Speaker 1: also means you're going to be at the mechanic shop 541 00:24:15,320 --> 00:24:17,399 Speaker 1: a whole lot more often insane. So it's the money 542 00:24:17,400 --> 00:24:18,880 Speaker 1: and at the time, like how frustrating. 543 00:24:19,040 --> 00:24:21,879 Speaker 2: Yeah, And so we just want to remind folks to 544 00:24:22,040 --> 00:24:24,879 Speaker 2: think about the overall cost of car ownership, not just 545 00:24:24,920 --> 00:24:27,960 Speaker 2: the sticker price, but the average repair and remember the 546 00:24:28,000 --> 00:24:30,840 Speaker 2: insurance costs as well. And going to go back to 547 00:24:30,880 --> 00:24:34,359 Speaker 2: the manufacturers mentioned like Buick and Lincoln, I think Ford 548 00:24:34,440 --> 00:24:36,359 Speaker 2: was up there as well. But what I want to 549 00:24:36,359 --> 00:24:38,960 Speaker 2: say is make sure that you aren't being cheap in 550 00:24:39,160 --> 00:24:42,080 Speaker 2: an attempt to be frugal as well, because what you also, like, 551 00:24:42,160 --> 00:24:44,160 Speaker 2: you can't just think about the sticker price of the vehicle. 552 00:24:44,200 --> 00:24:46,240 Speaker 2: You can't just think about maintenance costs, but like think 553 00:24:46,240 --> 00:24:48,320 Speaker 2: about how long that vehicle is going to last on 554 00:24:48,359 --> 00:24:50,800 Speaker 2: the road, because not too far down the list, like 555 00:24:50,840 --> 00:24:53,880 Speaker 2: literally only a couple hundred dollars more on maintenance costs 556 00:24:54,040 --> 00:24:58,920 Speaker 2: were manufacturers like Toyota and Honda, And these are vehicles 557 00:24:59,000 --> 00:25:00,959 Speaker 2: that are going to get you well past that two 558 00:25:01,040 --> 00:25:04,359 Speaker 2: hundred thousand mile mark if you so choose to continue 559 00:25:04,359 --> 00:25:07,320 Speaker 2: to drive that old ride our Honda. I think we're 560 00:25:07,320 --> 00:25:08,960 Speaker 2: at like one hundred and sixty five thousand miles now, 561 00:25:09,000 --> 00:25:11,720 Speaker 2: and I'm starting to realize, oh man, we're it's not 562 00:25:11,720 --> 00:25:13,480 Speaker 2: going to be too long before we hit that two 563 00:25:13,560 --> 00:25:16,880 Speaker 2: hundred thousand mile How about you drive well, yeah, that's true, 564 00:25:16,920 --> 00:25:18,960 Speaker 2: but we just want folks to again keep that in mind. 565 00:25:19,000 --> 00:25:21,520 Speaker 2: Don't hear some of these other manufacturers and think, well, shoot, 566 00:25:21,720 --> 00:25:23,280 Speaker 2: that's the kind of car I need to get as well. 567 00:25:23,320 --> 00:25:25,520 Speaker 2: But what they're not taking into account is what the 568 00:25:25,520 --> 00:25:27,520 Speaker 2: cost of your next vehicle might be because that one 569 00:25:27,560 --> 00:25:29,960 Speaker 2: crapped out on you and you have to buy another vehicle, 570 00:25:30,000 --> 00:25:32,679 Speaker 2: maybe sooner than you would have had you been driving 571 00:25:32,680 --> 00:25:34,280 Speaker 2: a more dependable Honda or Toyleta. 572 00:25:34,400 --> 00:25:36,760 Speaker 1: We talked about some of the great ev lease deals 573 00:25:36,840 --> 00:25:39,040 Speaker 1: last week for a little bit too. But it's just 574 00:25:39,040 --> 00:25:41,159 Speaker 1: a reminder that if you want to commit to a 575 00:25:41,200 --> 00:25:45,359 Speaker 1: certain electric vehicle for eight, ten plus years, the buying 576 00:25:45,400 --> 00:25:47,080 Speaker 1: a Tesla kind of makes a lot of sense these 577 00:25:47,160 --> 00:25:49,800 Speaker 1: days in a lot of in a lot of the country, 578 00:25:50,040 --> 00:25:51,600 Speaker 1: if it works for your lifestyle and if you like 579 00:25:51,640 --> 00:25:55,040 Speaker 1: the car because of the low maintenance costing, because they've 580 00:25:55,160 --> 00:25:57,920 Speaker 1: lowered the prices on many of those models, the Model 581 00:25:57,920 --> 00:26:00,400 Speaker 1: three and the Model X in particular, So it's just 582 00:26:00,680 --> 00:26:04,200 Speaker 1: crazy to think about how much how many price cuts 583 00:26:04,400 --> 00:26:06,560 Speaker 1: Tesla has enacted on some of those rides, and it 584 00:26:06,680 --> 00:26:10,159 Speaker 1: just makes it so much easier for normal folks to 585 00:26:10,280 --> 00:26:12,760 Speaker 1: buy a new car and then over ten twelve years 586 00:26:12,920 --> 00:26:15,840 Speaker 1: for it to actually be a reasonable decision. If you 587 00:26:15,920 --> 00:26:17,959 Speaker 1: buy the right new car and you hold it for 588 00:26:18,000 --> 00:26:20,840 Speaker 1: a longer period of time, it can actually make financial sense. 589 00:26:21,080 --> 00:26:24,560 Speaker 1: But let's talk about medical fees, Matt. There are new 590 00:26:24,600 --> 00:26:27,639 Speaker 1: fees coming to people's hospital bills when they go in 591 00:26:27,720 --> 00:26:30,639 Speaker 1: for a procedure, and they're being called facility fees. It's 592 00:26:30,720 --> 00:26:32,360 Speaker 1: kind of like when you go to and you buy 593 00:26:32,359 --> 00:26:33,800 Speaker 1: a car, think about all the fees that are attached 594 00:26:33,800 --> 00:26:34,960 Speaker 1: to it and you're like, wait a second, I thought 595 00:26:34,960 --> 00:26:37,120 Speaker 1: the price was this, but then these fees mean it's 596 00:26:37,119 --> 00:26:40,160 Speaker 1: like four thousand dollars more, like I was not expecting this. Well, 597 00:26:40,160 --> 00:26:42,560 Speaker 1: this sort of sticker shock is also happening to people 598 00:26:42,880 --> 00:26:46,040 Speaker 1: after they go into the hospital or to a medical facility, 599 00:26:46,240 --> 00:26:49,480 Speaker 1: and The Wall Street Journal wrote about the pernicious escalation 600 00:26:49,840 --> 00:26:52,600 Speaker 1: of these charges and how they're plaguing consumers to the 601 00:26:52,600 --> 00:26:56,240 Speaker 1: tune enough hundreds of dollars extra on normally run of 602 00:26:56,240 --> 00:26:59,200 Speaker 1: the mill medical invoices. So what should you do, Well, 603 00:26:59,359 --> 00:27:02,400 Speaker 1: don't it lying down. If you get an invoice for 604 00:27:02,440 --> 00:27:06,480 Speaker 1: a procedure and it there's a facility fee listed, challenge it. 605 00:27:07,000 --> 00:27:09,199 Speaker 1: Reach you back out to the place where you had 606 00:27:09,240 --> 00:27:11,520 Speaker 1: the procedure done and say, excuse me, you've never heard 607 00:27:11,520 --> 00:27:13,440 Speaker 1: of this before. It wasn't told about this. Can you 608 00:27:13,480 --> 00:27:16,360 Speaker 1: take this off the bill? And honestly, you probably want 609 00:27:16,359 --> 00:27:18,280 Speaker 1: to challenge some of the other vague charges on your 610 00:27:18,280 --> 00:27:20,520 Speaker 1: bill too. There are probably things there that shouldn't be there. 611 00:27:20,680 --> 00:27:22,679 Speaker 1: And if you need more information on how to do that, 612 00:27:23,000 --> 00:27:25,520 Speaker 1: check out two episodes that we've released in the past 613 00:27:25,760 --> 00:27:28,680 Speaker 1: six point eighty seven with Marshall Allen. He wrote about 614 00:27:28,920 --> 00:27:31,600 Speaker 1: never paying the first bill that comes your way Episode 615 00:27:31,640 --> 00:27:34,919 Speaker 1: seven sixteen with Doctor Burgie about pushing back against some 616 00:27:34,960 --> 00:27:38,080 Speaker 1: of these extreme, ridiculous medical costs that we incur. There 617 00:27:38,119 --> 00:27:41,600 Speaker 1: are all sorts of ways to have that medical debt 618 00:27:41,920 --> 00:27:45,160 Speaker 1: either completely eradicated or to have the bill shrunk down 619 00:27:45,400 --> 00:27:48,280 Speaker 1: in a meaningful way. But you don't get it if 620 00:27:48,320 --> 00:27:50,000 Speaker 1: you don't know, and you don't and you don't know 621 00:27:50,000 --> 00:27:51,640 Speaker 1: how to actually attack it, and the questions to ask 622 00:27:51,680 --> 00:27:52,520 Speaker 1: and the people to talk to. 623 00:27:52,600 --> 00:27:55,040 Speaker 2: That's right, Just by asking that question and pushing back, 624 00:27:55,080 --> 00:27:56,760 Speaker 2: that can reduce how much you're you're going to have 625 00:27:56,800 --> 00:27:58,879 Speaker 2: to pay. And part of the reason for these higher 626 00:27:58,880 --> 00:28:03,160 Speaker 2: fees is the consolidation that's happening within the healthcare industry. 627 00:28:03,600 --> 00:28:06,679 Speaker 2: Less competition, bigger companies. That's going to mean dumber fees 628 00:28:06,760 --> 00:28:09,240 Speaker 2: and more frustration for the masses. Basically, like some of 629 00:28:09,280 --> 00:28:12,920 Speaker 2: these smaller clinics are getting absorbed into these larger hospital 630 00:28:12,960 --> 00:28:16,679 Speaker 2: networks in these systems, and because of that, Formally, this 631 00:28:16,800 --> 00:28:18,320 Speaker 2: was a clinic that you went to all the time, 632 00:28:18,359 --> 00:28:20,919 Speaker 2: but now because it's part of the whatever the larger 633 00:28:21,280 --> 00:28:23,399 Speaker 2: just think of whatever the big hospital network is in 634 00:28:23,440 --> 00:28:27,120 Speaker 2: your area, they can slap that hospital facility fee on there. 635 00:28:27,160 --> 00:28:30,160 Speaker 1: It feels like that's happening in tropes. Oh, we live 636 00:28:30,200 --> 00:28:33,200 Speaker 1: like We've seen the main two hospital providers their names 637 00:28:34,320 --> 00:28:36,440 Speaker 1: logos to expand they're going up all over the place. 638 00:28:36,480 --> 00:28:37,840 Speaker 1: Private practice is being sucked up by it. 639 00:28:37,960 --> 00:28:41,040 Speaker 2: Yeah, well, the same thing's happening in the animal healthcare 640 00:28:41,080 --> 00:28:43,640 Speaker 2: space as well as like vet bills, they're climbing due 641 00:28:43,680 --> 00:28:47,000 Speaker 2: to consolidation private equity firms. They've actually been snapping up 642 00:28:47,040 --> 00:28:49,959 Speaker 2: smaller vet practices, spending tens of billions of dollars over 643 00:28:49,960 --> 00:28:51,680 Speaker 2: the past few years to do so. It makes them 644 00:28:51,720 --> 00:28:54,840 Speaker 2: a whole lot of money. The vet owners are certainly 645 00:28:54,880 --> 00:28:58,520 Speaker 2: thrilled as the small business owner, but that decreases competition 646 00:28:58,760 --> 00:29:01,000 Speaker 2: and it increases what you're gonna pay the next time 647 00:29:01,040 --> 00:29:04,560 Speaker 2: you visit your vet. Under the new ownership, vet costs 648 00:29:04,640 --> 00:29:08,040 Speaker 2: are up almost ten percent year over year, and so 649 00:29:08,480 --> 00:29:11,480 Speaker 2: what you can do is shop around and plan ahead 650 00:29:11,480 --> 00:29:14,080 Speaker 2: as much as possible. We would also recommend for folks 651 00:29:14,120 --> 00:29:18,280 Speaker 2: to try to self ensure by having more in savings. 652 00:29:17,320 --> 00:29:21,560 Speaker 2: The human and pet healthcare systems are pretty messed up, 653 00:29:22,280 --> 00:29:24,880 Speaker 2: and we are all spending more on our pets than 654 00:29:24,880 --> 00:29:27,160 Speaker 2: ever before. As well. We're paying for surgeries. We're paying 655 00:29:27,160 --> 00:29:31,280 Speaker 2: for treatments that were unthinkable years before. Nothing we're gonna 656 00:29:31,280 --> 00:29:32,959 Speaker 2: say is going to fix this problem, but we want 657 00:29:33,200 --> 00:29:36,959 Speaker 2: you to do your best within this space as it's 658 00:29:37,000 --> 00:29:39,320 Speaker 2: fraught with peril, and I think there are just more 659 00:29:39,320 --> 00:29:42,440 Speaker 2: opportunities for you to be parted with your dollars and 660 00:29:42,560 --> 00:29:44,600 Speaker 2: you got to ask those questions again. Pushing back it 661 00:29:44,680 --> 00:29:47,280 Speaker 2: just generally puts you in a better posture of not 662 00:29:47,480 --> 00:29:50,240 Speaker 2: just paying any every single bill that comes your way 663 00:29:50,280 --> 00:29:52,360 Speaker 2: without you know, without thinking about it, Like, we don't 664 00:29:52,400 --> 00:29:54,200 Speaker 2: want for you to receive the bill and for the 665 00:29:54,200 --> 00:29:57,719 Speaker 2: default action just to be like click to pay. And 666 00:29:57,760 --> 00:29:59,640 Speaker 2: certainly we want you to pay your bills, but maybe 667 00:29:59,680 --> 00:30:01,080 Speaker 2: not with pushing back a little bit. Yeah. 668 00:30:01,080 --> 00:30:03,040 Speaker 1: Man, I have a friend who was a vet and 669 00:30:03,080 --> 00:30:05,600 Speaker 1: he ended up selling his practice because. 670 00:30:05,640 --> 00:30:07,160 Speaker 2: Do you offer was too good to refuse? 671 00:30:07,320 --> 00:30:08,920 Speaker 1: I mean, it was just it was crazy the amount 672 00:30:08,920 --> 00:30:11,120 Speaker 1: of money being thrown his way to buy this practice, 673 00:30:11,120 --> 00:30:13,480 Speaker 1: and so for him as an individual, I totally get 674 00:30:13,480 --> 00:30:16,240 Speaker 1: the decision. But then this is again happening all across 675 00:30:16,280 --> 00:30:19,120 Speaker 1: the country. This is impacting people who love their bets 676 00:30:19,200 --> 00:30:22,440 Speaker 1: and don't want to spend ten percent more year over year. 677 00:30:22,440 --> 00:30:25,000 Speaker 1: They would rather be like two percent increases or three 678 00:30:25,040 --> 00:30:28,240 Speaker 1: percent increases in line with regular inflation. But because of 679 00:30:28,280 --> 00:30:31,200 Speaker 1: the dynamics, it's just that's not the way of shaking out. 680 00:30:31,240 --> 00:30:32,160 Speaker 2: So you have to. 681 00:30:32,160 --> 00:30:36,200 Speaker 1: Watch your own back in this space. Last story, what's 682 00:30:36,240 --> 00:30:39,400 Speaker 1: the impact of working longer on your ability to retire? 683 00:30:39,720 --> 00:30:42,320 Speaker 1: This is something that gets talked about sometimes, and if 684 00:30:42,320 --> 00:30:44,240 Speaker 1: you're in your twenties or thirties, you're probably not even 685 00:30:44,240 --> 00:30:47,840 Speaker 1: thinking about this yet, but working one more year can 686 00:30:48,000 --> 00:30:50,760 Speaker 1: make a massive difference in your ability to be financially 687 00:30:50,880 --> 00:30:53,520 Speaker 1: secure for a long period of time. There was an 688 00:30:53,600 --> 00:30:56,440 Speaker 1: article again we actually mentioned one earlier in Kipling or 689 00:30:56,440 --> 00:30:58,360 Speaker 1: this one was in Kipling or two. It outlined just 690 00:30:58,400 --> 00:31:00,360 Speaker 1: how big of a difference a year makes, and that's 691 00:31:00,400 --> 00:31:03,160 Speaker 1: because it moves the needle on so many levels. First, 692 00:31:03,280 --> 00:31:05,160 Speaker 1: you end up saving more. You got another year to 693 00:31:05,200 --> 00:31:08,360 Speaker 1: sock away more money, right, another year of contributions to 694 00:31:08,400 --> 00:31:12,000 Speaker 1: those retirement accounts. Second, you'll need to save less for retirement, 695 00:31:12,240 --> 00:31:14,600 Speaker 1: one less year to fund so you say, you know, 696 00:31:14,640 --> 00:31:17,600 Speaker 1: instead of retiring to sixty nine and retire at seventy, well, 697 00:31:17,800 --> 00:31:20,160 Speaker 1: that does both right. It means you don't have to 698 00:31:20,200 --> 00:31:22,720 Speaker 1: save as much for retirement, because it's when where you're 699 00:31:22,760 --> 00:31:24,920 Speaker 1: that you're working. Third, you've got more time for your 700 00:31:24,960 --> 00:31:27,800 Speaker 1: investments to compound, another year for the money to work 701 00:31:27,800 --> 00:31:30,280 Speaker 1: on your behalf, and then you can delay social Security 702 00:31:30,320 --> 00:31:32,440 Speaker 1: a little bit longer as well, netting a bigger check 703 00:31:32,480 --> 00:31:36,360 Speaker 1: each month. Basically, an extra year of work can dramatically 704 00:31:36,520 --> 00:31:39,160 Speaker 1: alter your nest egg and your ability to thrive for 705 00:31:39,240 --> 00:31:43,800 Speaker 1: decades to come. Not saying like work forever, die at 706 00:31:43,840 --> 00:31:46,320 Speaker 1: your desk, but it is interesting, it's worth thinking through 707 00:31:46,360 --> 00:31:48,440 Speaker 1: the trade offs because it can make a big difference. 708 00:31:48,560 --> 00:31:51,440 Speaker 2: Yeah, I think well. I mean this is why within 709 00:31:51,440 --> 00:31:54,560 Speaker 2: the fire community especially, this is often presented as the 710 00:31:54,600 --> 00:31:57,680 Speaker 2: one more year syndrome, and it causes people to keep 711 00:31:57,680 --> 00:32:00,120 Speaker 2: working when they have plenty saved up already, they don't 712 00:32:00,120 --> 00:32:03,440 Speaker 2: necessarily need to continue to work, and that syndrome can 713 00:32:03,480 --> 00:32:05,640 Speaker 2: continue year after year, right where it just keeps folks 714 00:32:05,720 --> 00:32:08,240 Speaker 2: at their jobs a whole lot longer than they'd plan for. Yeah, 715 00:32:08,280 --> 00:32:09,840 Speaker 2: you say one more year, and then the next year 716 00:32:09,920 --> 00:32:12,200 Speaker 2: you say it again, like maybe one more year. It's 717 00:32:12,240 --> 00:32:14,400 Speaker 2: just yeah, moving the goalposts. And I think it is 718 00:32:14,440 --> 00:32:17,680 Speaker 2: worth knowing all the positive benefits of working longer. But 719 00:32:17,680 --> 00:32:21,120 Speaker 2: it's also possible to be too conservative, where you continue 720 00:32:21,160 --> 00:32:23,320 Speaker 2: to work when you don't necessarily need to in order 721 00:32:23,320 --> 00:32:26,320 Speaker 2: to gain higher levels of financial security. And I know 722 00:32:26,880 --> 00:32:29,479 Speaker 2: we're a couple of dudes who are solidly, you know, 723 00:32:29,520 --> 00:32:32,800 Speaker 2: still within their wealth accumulation phase. So it's easier said 724 00:32:32,800 --> 00:32:35,480 Speaker 2: than done. I know that, And I'm curious to see when, 725 00:32:35,600 --> 00:32:38,040 Speaker 2: as we continue to age up, Joel, whether like how 726 00:32:38,080 --> 00:32:41,920 Speaker 2: easy will it be even for us to not continue 727 00:32:41,960 --> 00:32:44,760 Speaker 2: to save and invest, but to actually start drawing down 728 00:32:45,240 --> 00:32:47,600 Speaker 2: on all that we have worked towards. And I think 729 00:32:47,840 --> 00:32:49,960 Speaker 2: even small little things along the way can help you 730 00:32:50,000 --> 00:32:51,720 Speaker 2: to do that. Like, I feel like there's a part 731 00:32:51,880 --> 00:32:54,400 Speaker 2: we've talked about how Kate and I we're not we're 732 00:32:54,400 --> 00:32:57,080 Speaker 2: not saving or we're not investing any money this year 733 00:32:57,120 --> 00:32:59,880 Speaker 2: at all, and that's in part because we're working on 734 00:33:00,400 --> 00:33:03,640 Speaker 2: funding of renovation that are home. But even that, it's 735 00:33:03,680 --> 00:33:07,000 Speaker 2: like it's almost like trying out retirement because it's not retiring. 736 00:33:07,040 --> 00:33:09,840 Speaker 2: I'm not drawing funds out of retirement accounts, but it's 737 00:33:09,880 --> 00:33:13,800 Speaker 2: a step in that direction, and it's psychologically plays on 738 00:33:13,840 --> 00:33:16,000 Speaker 2: the same centers. And because we talk about this all 739 00:33:16,000 --> 00:33:18,200 Speaker 2: the time, I still don't think I don't think I'll 740 00:33:18,200 --> 00:33:21,280 Speaker 2: personally have too difficult of a time drawing down on retirement. 741 00:33:21,320 --> 00:33:23,840 Speaker 2: But I do think it's gonna take maybe a little 742 00:33:23,840 --> 00:33:26,400 Speaker 2: bit of practice, whether that's going on a sabbatical like 743 00:33:26,440 --> 00:33:28,560 Speaker 2: we talked about with Jillian a couple of weeks ago, 744 00:33:29,160 --> 00:33:31,400 Speaker 2: or maybe it's just being a little more introspective and 745 00:33:31,800 --> 00:33:35,800 Speaker 2: figuring out what it is that shapes and defines how 746 00:33:35,880 --> 00:33:38,160 Speaker 2: does that you think about about your money. Maybe it 747 00:33:38,200 --> 00:33:40,800 Speaker 2: even takes you talking to a financial therapist, who, by 748 00:33:40,800 --> 00:33:43,880 Speaker 2: the way, we're going to talk to one next Wednesday, 749 00:33:43,920 --> 00:33:45,360 Speaker 2: so you can you can look forward to that one 750 00:33:45,480 --> 00:33:48,680 Speaker 2: as we are thinking about our feelings and how they 751 00:33:48,680 --> 00:33:49,480 Speaker 2: apply it to money. 752 00:33:49,480 --> 00:33:51,680 Speaker 1: So popped about that conversation makes me think that we 753 00:33:51,760 --> 00:33:53,240 Speaker 1: just recently published, and we'll link to this in the 754 00:33:53,280 --> 00:33:56,240 Speaker 1: show notes as well, an article about tapping your retirement 755 00:33:56,240 --> 00:33:58,640 Speaker 1: funds early, and we try to couch it in that 756 00:33:58,760 --> 00:34:02,200 Speaker 1: article like you might not want to, but there are ways. 757 00:34:02,240 --> 00:34:05,560 Speaker 1: And we posted something on Instagram recently about that, and 758 00:34:05,640 --> 00:34:07,600 Speaker 1: the first knee jerk response from someone was like, don't 759 00:34:07,600 --> 00:34:09,960 Speaker 1: ever touch your retirement accounts ever, And I get where 760 00:34:09,960 --> 00:34:13,920 Speaker 1: they're coming from. And yeah, we talk about the detriment 761 00:34:14,080 --> 00:34:16,600 Speaker 1: of tapping your retirement accounts early too, because there are 762 00:34:16,719 --> 00:34:18,640 Speaker 1: real things to watch out for and be careful of, 763 00:34:19,000 --> 00:34:21,600 Speaker 1: but that don't touch them ever. Sort of mindset I 764 00:34:21,600 --> 00:34:23,840 Speaker 1: think that pervades people who are hyper frugal too, And 765 00:34:23,840 --> 00:34:26,239 Speaker 1: at some point, the whole goal of accumulating wealth is 766 00:34:26,280 --> 00:34:28,319 Speaker 1: to be able to enjoy it, and so you have 767 00:34:28,400 --> 00:34:30,080 Speaker 1: to play that both in. You have to kind of 768 00:34:30,080 --> 00:34:33,839 Speaker 1: find that center, and most people are bent hard one 769 00:34:33,840 --> 00:34:36,040 Speaker 1: way or the other, and that's hard to do. We're 770 00:34:36,040 --> 00:34:37,520 Speaker 1: trying to do the same thing in our own lives 771 00:34:37,520 --> 00:34:40,000 Speaker 1: and it's Yeah, you don't come by it easily. Matt. 772 00:34:40,000 --> 00:34:42,160 Speaker 1: You're dipping your toes in right now, which I think 773 00:34:42,239 --> 00:34:46,200 Speaker 1: is laudable. It's admirable, and for everyone else out there, yeah, no, 774 00:34:46,400 --> 00:34:49,280 Speaker 1: the benefits of working longer, but also know the downsides, 775 00:34:49,800 --> 00:34:52,000 Speaker 1: the ways in which it could maybe not allow you 776 00:34:52,080 --> 00:34:53,960 Speaker 1: to achieve other goals that you might have. And wrap 777 00:34:54,080 --> 00:34:56,640 Speaker 1: things up, Matt, let's mention quickly. The folks who won 778 00:34:56,680 --> 00:35:00,600 Speaker 1: the newsletter shout out this week, picks Peak, Rastro, Camby, 779 00:35:00,840 --> 00:35:03,680 Speaker 1: and Hayden, thank you for referring other people to the 780 00:35:03,719 --> 00:35:06,600 Speaker 1: Hoda Money newsletter. We just hit our two year newsletter bursary, 781 00:35:06,840 --> 00:35:09,399 Speaker 1: and we're gonna send you a free pair of how 782 00:35:09,400 --> 00:35:11,640 Speaker 1: to Money socks so you can look forward to getting 783 00:35:11,640 --> 00:35:13,960 Speaker 1: those in the mail. And by the way, if you 784 00:35:14,239 --> 00:35:17,240 Speaker 1: are not yet subscribed to the how to Money newsletter, 785 00:35:17,280 --> 00:35:19,239 Speaker 1: we'd love to have you join us. You can subscribe 786 00:35:19,239 --> 00:35:21,480 Speaker 1: at how to money dot com slash newsletter. 787 00:35:21,719 --> 00:35:23,879 Speaker 2: But that's gonna be it for today, buddy. Until next time, 788 00:35:24,320 --> 00:35:27,480 Speaker 2: best friends out, Best Friends Out.