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Speaker 1: Welcome to How to Money.

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Speaker 2: I'm Joel, I'm Matt, and today.

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Speaker 1: We're answering your listener questions.

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Speaker 2: That's right, buddy, we are going to hear from a

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Speaker 2: bunch of lady listeners. Actually is, we've had a lady's

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Speaker 2: episode to line up for everyone.

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Speaker 1: Ladies' night. Oh what a night.

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Speaker 2: Special deals offered for all the lady listeners out there. No,

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Speaker 2: we really do have some great listener questions to get to.

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Speaker 2: One listener she actually has a hang up with haggling.

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Speaker 2: We're gonna give our take on whether or not she

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Speaker 2: should be haggling in this particular instance. Another listener is

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Speaker 2: asking for some HSA, some Health Savings account clarifications. She

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Speaker 2: is unsure if she should be investing, So we'll get

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Speaker 2: to that one. And another listener is asking the question

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Speaker 2: have I saved? Have I invested enough? I'm looking to

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Speaker 2: slow my role. We'll get to that one plus more

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Speaker 2: during today's episode.

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Speaker 1: But at some point you gotta take your thot off

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Speaker 1: the pedal. I'll talking about that. Yeah, Matt, you have

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Speaker 1: something you talking about. Are you doing some major repairs?

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Speaker 1: So a rental property or something?

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Speaker 3: Right?

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Speaker 2: Yeah, so I mentioned this to you earlier I'm curious

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Speaker 2: what your approach is when it comes to different like

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Speaker 2: renovations with investment properties. And I'm not talking about it

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Speaker 2: from like a return on investment standpoint, right, because a

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Speaker 2: lot of time, like we've talked about, Oh, the number

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Speaker 2: one thing you can do to increase the curve appeal

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Speaker 2: therefore the value of your home. Replace the garage door.

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Speaker 2: It's the biggest thing, has the biggest staircase.

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Speaker 1: Paint it right like I want. Our listeners suggested.

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Speaker 2: Even painting it goes a really long way, which is

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Speaker 2: something that we did. But no, like I'm talking about

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Speaker 2: it from the standpoint of like I asked myself what

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Speaker 2: kind of rental property do I want to own? Essentially,

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Speaker 2: because on one end of the spectrum, you could say, well,

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Speaker 2: I'm only looking to the dollars and cents. I'm looking

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Speaker 2: to keep things really affordable, and some folks might accuse

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Speaker 2: you of being a slum lord. Things are barely working. Well,

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Speaker 2: maybe they weren't perfectly fine, but it's just not nearly

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Speaker 2: as nigh I say, is maybe what you would expect personally, Yeah,

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Speaker 2: but the like, the positive side of that is that

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Speaker 2: it's more affordable, right, Like you have a property maybe

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Speaker 2: in a great neighborhood that's going to be more affordable

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Speaker 2: because obviously, if you've got really really old finishes in

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Speaker 2: there that are perfectly sound, however, you're not going to

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Speaker 2: demand a really high rent. But on the other end

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Speaker 2: of the spectrum, you could say, Oh, I'm gonna go

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Speaker 2: in there. I wanna make this a really nice property.

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Speaker 2: But what are you going to do? You are expecting

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Speaker 2: higher rents because of certain upgrades that you make to

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Speaker 2: a property. But then maybe you don't have the criticism

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Speaker 2: of like being.

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Speaker 1: A slum lord.

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Speaker 2: It's like, oh, this is a this is a nice

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Speaker 2: property that I would even want to live in. Where

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Speaker 2: do you like do you see yourself somewhere in particular?

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Speaker 1: I think I see myself kind of square in the middle,

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Speaker 1: because I think you can you can under improve a

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Speaker 1: property and you're gonna have a hard time finding tenants.

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Speaker 1: You can over improve a property and you're not going

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Speaker 1: to get the ROI out of the out of the

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Speaker 1: upgrades that you've made to the property. I've always said

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Speaker 1: this when I'm I'm talking about the rental properties I own.

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Speaker 1: What do I want to live in it myself? Or

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Speaker 1: would I be willing to live in it myself, or

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Speaker 1: at least a prior version of myself, because I will say,

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Speaker 1: my tastes have changed, and so I'm not willing to

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Speaker 1: stay in a hostel when I travel anymore, right, I

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Speaker 1: want to exactly. So that's the nast response.

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Speaker 2: That's what makes it so difficult now to say what

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Speaker 2: I want to do this now.

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Speaker 1: So would twenty six year old Joel or twenty two

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Speaker 1: year old Joel have lived in this the duplex that

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Speaker 1: I own? Let's say, yeah, what I've and I totally

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Speaker 1: would have.

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Speaker 2: But it's twenty twenty four, And so that's the problem

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Speaker 2: is that you are like, would a twenty three year

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Speaker 2: old in twenty twenty four be willing to live That's

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Speaker 2: how I.

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Speaker 1: Try to filter it, Like I'm saying, yeah, we give

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Speaker 1: in today's standards and stuff like that, Like is the

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Speaker 1: property and good enough condition that I would be willing

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Speaker 1: to live in it?

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Speaker 2: And there are certain expectations that I think folks come

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Speaker 2: to expect. It's just like, oh, it's got to have this,

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Speaker 2: Oh it's got to have that, but that does I'll

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Speaker 2: have to match or something like that. But what that

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Speaker 2: does it drives the rents up, so I find myself

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Speaker 2: asking this question a lot. Like we basically we had

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Speaker 2: some renters move out and made some repairs and dare

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Speaker 2: I say upgrades to the property, And specifically what I

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Speaker 2: had in mind and when I wanted to get your

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Speaker 2: take on were the floors, because this is a property

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Speaker 2: that we've owned for over ten years. We got it

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Speaker 2: as a short sale, so it wasn't in great shape

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Speaker 2: when we got it, and the floors have always been

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Speaker 2: rough as in the hardwoods. The hardwoods, Yeah, yeah, like

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Speaker 2: big gouges in the wood were like so therefore water

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Speaker 2: stains would get in, it'd stay in the wood. And

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Speaker 2: I thought, you know, this might be a good opportunity

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Speaker 2: to go ahead and refinish the floors, and in essence

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Speaker 2: as a way to protect keep us soares around longer,

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Speaker 2: to keep you exactly, because like that's one of those

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Speaker 2: things that you're not adding something new to the property,

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Speaker 2: you're just maintaining.

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Speaker 1: Think about the sparkly vibe that we're going to give off,

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Speaker 1: and how potential tenants might walk in and say, oh, yeah,

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Speaker 1: it want to live here.

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Speaker 2: It looks amazing. But therefore you ran into the same

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Speaker 2: problem of increasing rents in a certain neighborhood, and all

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Speaker 2: of a sudden, you've eliminated a certain renter pool from

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Speaker 2: even being able to consider that property. So I guess

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Speaker 2: that's why I find myself torn in tough balance to strike.

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Speaker 2: That being said, I pulled the trigger. I mean, I

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Speaker 2: had been talking with a guy that does a lot

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Speaker 2: of hardwood floors. He's pretty affordable, and so we move

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Speaker 2: forward with it. They refinished the floors. They look amazing.

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Speaker 2: I don't. Yeah, they look so good. And I was

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Speaker 2: trying to think from an ROI standpoint. I'm thinking, the floors,

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Speaker 2: they're going to be protected, they're sealed, got three maybe

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Speaker 2: four coats of polly on there like for years. These

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Speaker 2: floors are going to look amazing. But that being said,

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Speaker 2: it was not cheap like I thought of. And I

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Speaker 2: don't think I really would have done this, but you could.

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Speaker 2: I could have gone the cheap route and just carpeted

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Speaker 2: the whole place, because that would have looked nice too,

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Speaker 2: like you put a nicer carpet in there. Some people

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Speaker 2: think carpet's more comfortable anyway, but.

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Speaker 1: That's typically not what most people are looking for these days.

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Speaker 1: They want carblets. They want to put it down and

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Speaker 1: they wanted to look nice and they wanted to be

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Speaker 1: able to put a nice throw rug down at the top.

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Speaker 2: So yeah, it can curvas it's not a long term thing.

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Speaker 1: Like I honestly wouldn't want to would not even consider it. No,

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Speaker 1: I don't think I would, like I hate carpet now,

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Speaker 1: Like I just yeah, we've got carpet in the upstairs,

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Speaker 1: and I will say it's super cozy as opposed especially

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Speaker 1: in the middle of the winter and like the you

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Speaker 1: know it's freaking freezing, but upstairs on the rooms, man,

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Speaker 1: it's like a nice little cozy rooms.

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Speaker 2: Yeah, but especially with the rental man carpet, it just

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Speaker 2: sounds like a nightmare.

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Speaker 1: We don't have almost like your replaced paint, yeah, or at.

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Speaker 2: Least get like a profession cleaner and there to do

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Speaker 2: a professional cleaning on the carpet, and then what does

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Speaker 2: it look like after the fact. So I think some

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Speaker 2: of it comes down to cash flow too, because it's like,

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Speaker 2: all right, do we have the cash on hand to

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Speaker 2: be able to make this improvement? Am I willing to

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Speaker 2: make this maybe slightly better than it used to be?

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Speaker 2: And I think as long as we're on that track,

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Speaker 2: I'm always looking to slightly improve where it was, so

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Speaker 2: like inflation, you know, it's like like, do I want

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Speaker 2: it to be two percent better than it was last year? Well, okay, yeah, maybe.

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Speaker 1: We'll do that. It's also important to note that you

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Speaker 1: and I think long term about all of our investments,

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Speaker 1: and so doing the floors now means, yeah, maybe I

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Speaker 1: make a little bit less money this year, and maybe

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Speaker 1: it's not going to pour over the next three years. Yeah,

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Speaker 1: it's not going to prove the rents as much as

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Speaker 1: I would hope over the next three years. But this

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Speaker 1: is a worthwhile investment in something I plan on owning

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Speaker 1: for a long time to come. And when you have

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Speaker 1: the long term mindset, you don't mind sticking a little

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Speaker 1: bit of money if you have it into the property

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Speaker 1: in ways that you otherwise. I don't know, maybe a

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Speaker 1: few years back before you were as cash flow positive

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Speaker 1: as you are, like you might have hesitated to do

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Speaker 1: and so probably so, yeah, I'm willing to stick money

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Speaker 1: back into it, just like we stick money back into

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Speaker 1: a business. Right, it can be worth the investment because

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Speaker 1: it means that investment is going to continue to generate

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Speaker 1: revenue for you down the line, exactly.

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Speaker 2: Yeah, And when it comes to this property, we're not

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Speaker 2: looking to do anything with it other than hang on

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Speaker 2: to it, continue to run it out. So yeah, like

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Speaker 2: you said, I think the timeframe has a big impact

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Speaker 2: on your decision making. And I'm also not surprised to

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Speaker 2: see that you're like right there in the middle. Always

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Speaker 2: as we tend to avoid the extremes, Jo, Let's introduce

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Speaker 2: the beer that you and I are going to enjoy

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Speaker 2: during this episode, which is a pecan pie porter by

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Speaker 2: clown Shoes Brewing. I think we've had a clown Shoes

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Speaker 2: on the show, but probably a minute. But uh yeah,

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Speaker 2: looking forward to It's kind of the time of year

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Speaker 2: when you enjoy pecan pie here and there? Did you?

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Speaker 2: Did you enjoy one over Thanksgiving?

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Speaker 1: No? I didn't. I wish I had. But I guess

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Speaker 1: that this also begs the question is it pecan or pecan?

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Speaker 1: It's not peacn pe can always in that. That's how

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Speaker 1: so I was again trying to throw them, not going

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Speaker 1: to say it like a true southernn Right. Well, I'm

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Speaker 1: not a true Southerner.

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Speaker 2: I grew up saying pecan.

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Speaker 1: I bet you did. But I grew up pecan because

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Speaker 1: my parents from the Northwest.

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Speaker 2: So yeah, well, my dad's from the Midwest as well,

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Speaker 2: but my mom's from Korea.

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Speaker 1: That's a good point.

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Speaker 2: But we just learned how to say you just can

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Speaker 2: from the people around us went full on in the South.

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Speaker 1: I guess there you go. All right, we'll you have

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Speaker 1: our thoughts on this one at the end of the episode.

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Speaker 1: But and by the way, if you have a money

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Speaker 1: question we'd love to hear from you, go to how

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Speaker 1: money dot com slash ask for the simple instructions for us,

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Speaker 1: submit your question or literally just send us an email

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Speaker 1: with your voice memo and we will hopefully take it

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Speaker 1: on the next episode. The next Asked AHTM episode, Matt,

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Speaker 1: this first question is from a listener who's going on

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Speaker 1: a cruise wants to save money.

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Speaker 4: Hi, Matt and Joel. This is Sarah from Toronto, Canada.

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Speaker 4: My partner and I are going to be going on

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Speaker 4: a cruise in the Caribbean in January and I was

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Speaker 4: interested to hear your take on haggling with local vendors

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Speaker 4: or merchants in touristy areas when you're traveling. I know

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Speaker 4: a lot of people think it's expected or even required

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Speaker 4: to hagel, but I'm having some trouble with the idea

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Speaker 4: that you know, from our privileged, comfortable financial position, we

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Speaker 4: can spend thousands of dollars on a cruise, but then

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Speaker 4: take the time to hagel over you know, ten dollars

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Speaker 4: on a souvenir we're going.

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Speaker 2: To keep forever.

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Speaker 4: I really love the balanced end sort of gray area

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Speaker 4: conversations you both have, so I'd love to hear your

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Speaker 4: take on this.

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Speaker 2: Thank you bye, super fun question, Sarah. And for everybody

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Speaker 2: else out there, if you submit a fun question like

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Speaker 2: this that's out of the ordinary, you're always going to

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Speaker 2: like basically rise to the top. At the top of

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Speaker 2: the list, you get to move to the front of

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Speaker 2: the line. You got a really boring question, you go,

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Speaker 2: you go further down the line.

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Speaker 1: That's all I'm gonna say. Oh, that's basically true.

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Speaker 2: But since she's talking about cruises, I can't speak to

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Speaker 2: cruises from personal experience. I've never been on one, Joel.

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Speaker 1: You still haven't been, still have not been on a cruise, although.

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Speaker 2: You want to go on that Alaskan cruise evidently someday

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Speaker 2: one of these days.

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Speaker 1: Yeah.

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Speaker 2: That being said, I have traveled and haggled a fair

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Speaker 2: bit in my day And oh, what episode was it

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Speaker 2: that we talked about cruises with It? Was it Elaine Elana?

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Speaker 2: I believe was say yeah, and I'm getting our guest

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Speaker 2: mixed up. I was thinking of Elay and Gluesac.

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Speaker 1: Yeah.

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Speaker 2: We didn't talk about cruises with her, did we?

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Speaker 3: No?

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Speaker 1: No, we did, well, maybe a little bit with a

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Speaker 1: frugal traveler from the New York Times the time. No,

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Speaker 1: we had a cruise specific episode with tons of money

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Speaker 1: saving tips. It was episode seven to seventy six. I'll

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Speaker 1: look at you, so go check that one out, because, yeah,

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Speaker 1: if you're we'll talk about haggling here. But if you're like,

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Speaker 1: how can I save more money on cruises, I'm gonna

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Speaker 1: go on or make sure I don't get ripped off

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Speaker 1: going on a cruise. That's a really good episode listening.

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Speaker 2: Cruise specific episode. But Sarah, I get your hang up

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Speaker 2: with haggling, because it truly can be weird to drop,

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Speaker 2: you know, thousands of dollars on a sweet cruise and

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Speaker 2: haggle over like fifty cents with a local over some

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Speaker 2: souvenir that you want to take home with you. But

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Speaker 2: I actually think it's a good idea to budget for

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Speaker 2: those shopping excursions, knowing yourself and with that something that

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Speaker 2: you enjoy doing, and I still think that you should

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Speaker 2: at least do some haggling. So yes, I'm going to

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Speaker 2: say this is something that you should be doing, but

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Speaker 2: maybe with some exceptions.

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Speaker 1: Yeah, maybe in moderation, right. I mean, we talk about

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Speaker 1: asking for a discount and how it's like exercising a muscle,

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Speaker 1: and we think that there are a lot of instances

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Speaker 1: where people can and should be asking for a discount

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Speaker 1: regularly in their lives with companies they do business with.

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Speaker 1: And there are times when it's uncalled for, but then

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Speaker 1: there are other times where it's expected or you should

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Speaker 1: at least be pushing the envelope, right, And that's I

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Speaker 1: think one thing in the US or Canada where you're

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Speaker 1: likely dealing with people who are in your financial orbit,

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Speaker 1: or you're calling some sort of major conglomeration corporation like

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Speaker 1: a Comcast or something like that, and you saving twenty

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Speaker 1: five dollars a month on Internet. You don't care the

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Speaker 1: Comcast is making twenty five dollars less a month on

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Speaker 1: you doesn't feel like.

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Speaker 2: You're taking twenty five dollars out of somebody's wallet, right,

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Speaker 2: per se.

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Speaker 1: Who might not be able to feed their kids or

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Speaker 1: something like that. Right, But if you are heading to

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Speaker 1: parts of central South Amyeramerica, or you're heading to the Caribbean,

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Speaker 1: you know you you're likely going to be dealing with

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Speaker 1: people who have far less than you, and the dollar

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Speaker 1: that you can haggle for ultimately means less to you

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Speaker 1: than it does to them. But haggling is also a

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Speaker 1: part of the culture in many of those places, Matt,

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Speaker 1: which I think is an important part of this discussion.

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Speaker 1: And in fact, I think in some cultures, and I

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Speaker 1: don't know which ones exactly, but I know that there

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Speaker 1: are some cultures where if you don't haggle, you are

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Speaker 1: disrespecting the person who's selling the goods, like they're expecting

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Speaker 1: to enter into a negotiation with you, and it.

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Speaker 2: Feels like you're flaunting your wealth. It's like, oh, you're

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Speaker 2: so rich, you're not even asking for a disc that's right.

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Speaker 1: Yeah, And so they're going to take offence by the

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Speaker 1: fact that you didn't do it. It would be like

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Speaker 1: if you showed up to someone so let's say you

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Speaker 1: weren't a drinker or something, but it was customary to

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Speaker 1: drink a little bit of wine or something for a

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Speaker 1: specific observance. And if you said, oh, no, thanks, I'm

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Speaker 1: a teetotaler, Well you are maybe doing a cultural faux pas.

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Speaker 1: And yeah, maybe you're living up to your own ideals,

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Speaker 1: but sure you're doing something that is unexpected at least

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Speaker 1: in the custom where you're going. And you know, doing

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Speaker 1: a bit of haggling is it's almost like part of

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Speaker 1: the experience, and it is especially if it is expected.

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Speaker 1: So we'd encourage you to participate in that cultural heritage

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Speaker 1: without being too hard nosed. Yeah. I don't know, Matt,

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Speaker 1: if you remember specific things that you haggled over.

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Speaker 2: Oh, yeah, do you uh huh?

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Speaker 1: Do you have one in mind?

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Speaker 3: Oh?

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Speaker 2: I think about I went on a mission trip when

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Speaker 2: I was in high school and we spent a day

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Speaker 2: or two in Guatemala City, and literally the folks who

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Speaker 2: took us there were like, Hey, basically they're explaining to

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Speaker 2: us that this is how you haggle, and we're like

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Speaker 2: teaching us because we're you know, young, dumb high school

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Speaker 2: students and so like the big item was, at least

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Speaker 2: for the guys, was a machete. Yeah, we all left

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Speaker 2: the market with our own machetes and like these sweet

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Speaker 2: leather sheaths that were you know, that were carved or

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Speaker 2: that that were engraved, or what did you get the

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Speaker 2: best deal out of all your friends. I don't necessarily

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Speaker 2: remember that part. I remember haggling because well, because I

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Speaker 2: grew up haggling a little bit, because I as a kid,

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Speaker 2: we would hunt golf balls and set up a little

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Speaker 2: wash them, set them up on the side of our

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Speaker 2: local golf course, and golfers would come by and be like, hey,

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Speaker 2: three balls. You know, it depended on the ball, but

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Speaker 2: like three balls for a dollar or whatever, And so

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Speaker 2: there is some negotiating there. For me, it didn't feel

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Speaker 2: all that awkward versus maybe if you are I don't know,

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Speaker 2: more like an adult, you know, like if you're in

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Speaker 2: your forties and you've never haggled before, going to you know,

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Speaker 2: like a market like this, I think it would come

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Speaker 2: across as weird or rude or obtrusive somehow.

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Speaker 1: It's like your first time. Yeah, I could see that.

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Speaker 1: I can see that. So I distinctly remember haggling over

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Speaker 1: a pair of shorts, like soccer shorts in Shanghai, China.

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Speaker 1: I'd forgotten my swim trunks and I needed something to

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Speaker 1: be able to hop in the pool at the hotel

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Speaker 1: or whatever. And so I don't remember what I ended

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Speaker 1: up paying for them, but I just remember the back

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Speaker 1: and forth and kind of the faux walk away and

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Speaker 1: all that stuff and nice to me. It's kind of

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Speaker 1: an art and I enjoy it. It's more like a dance.

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Speaker 1: I think I told this like shrewd negotiation. I think

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Speaker 1: if you approach it in that way too, it's less

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Speaker 1: I don't know, offensive, and maybe you can and are

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Speaker 1: into it with a more jovial disposition.

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Speaker 2: I think that's a big part of it. So this

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Speaker 2: small tangent that maybe this is a frugal or cheap

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Speaker 2: so as I'm thinking of these wealthy golfers that are playing,

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Speaker 2: it's not too dissimilar of a scenario, right like where

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Speaker 2: you've got these guys that can afford like one of

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Speaker 2: the world's most expensive sports, and they're negotiating with me

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Speaker 2: at the time, a little kid trying to sell make

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Speaker 2: a living, sell a golf boss or whatever.

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Speaker 1: But Oliver Twist appear.

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Speaker 2: Dead as an adult. Do you think it's frugal or

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Speaker 2: cheap to negotiate or to haggle with kids who are

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Speaker 2: selling like lemonade or you know, the summer year, it's

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Speaker 2: like hot cocoa. If it's like an exorbitant amount of money,

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Speaker 2: because I have done this and Kate looks at me like,

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Speaker 2: give me the side of it, and I'm just like,

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Speaker 2: I'm not like trying to stick it too of them,

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Speaker 2: but I am trying to educate them that like, hey,

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Speaker 2: five dollars for a cup of hot chocolate is too

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Speaker 2: much money.

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Speaker 1: It's crazy.

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Speaker 2: I'm not willing to pay that much.

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Speaker 1: At Starbucks price is for a much inferior product. I

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Speaker 1: know Starbucks, So I think it's a frugal move. Yeah,

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Speaker 1: you yeah, it depends on what they're charging. But if

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Speaker 1: they're charging a dollar, I'm not gonna have one, no, no,

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Speaker 1: But if they're charging five bucks, I'll be like, listen

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Speaker 1: to your kid for.

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Speaker 2: An exorbitant amount and it's just but.

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Speaker 1: Then also might making a donation on top of it,

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Speaker 1: just for funzies.

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Speaker 2: Totally, it's not like I'm just trying to like totally

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Speaker 2: like get the absolute best value, right, And I like

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Speaker 2: what you said it's more like a dance, because it

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Speaker 2: is like the whole idea is for it to be fun.

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Speaker 2: But I also think a part of good negotiation tactics

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Speaker 2: might be to shop around a little bit. I think

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Speaker 2: it would be to walk around see what else is

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Speaker 2: selling in the market, seeing what the going rate is,

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Speaker 2: cause I don't think you should be haggling until you've

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Speaker 2: got the absolute, you know, lowest achievable price, because I

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Speaker 2: think that is going to be uncomfortable. I think there

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Speaker 2: might be some hurt feelings. It feels like it's it's

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Speaker 2: like you're not containing this like the proper spirit of

404
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Speaker 2: haggling if the.

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Speaker 1: Goal in that way as well, Yeah, if you're saying

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Speaker 1: I'm going to try to pay the lowest amount humanly possible,

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Speaker 1: that's not haggling. That's just being a jerk.

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Speaker 2: I think.

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Speaker 1: Yeah.

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Speaker 2: Again, I think there are ways to get the best price,

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Speaker 2: like don't buy if you see an item, like don't

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Speaker 2: buy from the first vendor that you see, Like walk

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Speaker 2: around a little bit, see but be like, oh wait

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Speaker 2: a minute, in the very back of the market or

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Speaker 2: on this other part of town, of the village or

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Speaker 2: wherever you are, they're offering the same thing for a

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Speaker 2: whole lot less, and maybe you end up supporting that

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Speaker 2: vendor instead.

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Speaker 1: But basically haggling, it's more browsing.

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Speaker 2: Yeah, browsing and shopping around and being willing to walk

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Speaker 2: away from a sale. I think that's that's huge.

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Speaker 1: Even putting like a time limit saying listen, I'm gonna

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Speaker 1: walk around for two hours buy anything.

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Speaker 2: Or even saying like, hey, the boat's leaving now, so

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Speaker 2: it's it's now or never. No, you know, no, But

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Speaker 2: if you're.

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Speaker 1: Walking away just because you've set a time limit for yourself,

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Speaker 1: that's that's actually one of the best haggling techniques is

429
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Speaker 1: to walk away and so you're like, no, no, literally, I'm

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Speaker 1: not buying anything yet. Well, because they know that you're

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Speaker 1: going to find out what they're what they're willing to

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Speaker 1: sell it to you for.

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Speaker 2: They know that there's another vendor right around the corner, right,

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Speaker 2: so even still continue to shop around. I mean, it's

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Speaker 2: just like when we talk about with shopping around for

436
00:17:39,880 --> 00:17:42,679
Speaker 2: like car insurance, like get multiple rates, because that's the

437
00:17:42,680 --> 00:17:44,760
Speaker 2: most important piece of information I think you can gather

438
00:17:44,840 --> 00:17:46,560
Speaker 2: is what other folks are going to yeah charge for

439
00:17:46,600 --> 00:17:47,320
Speaker 2: the same service.

440
00:17:47,440 --> 00:17:50,119
Speaker 1: Just telling the vendors that you're just browsing, it's like

441
00:17:50,119 --> 00:17:53,800
Speaker 1: an ingenious tactic and maybe you might find that like

442
00:17:54,080 --> 00:17:55,679
Speaker 1: you're not even saying no, no, no, give it to me

443
00:17:55,720 --> 00:17:58,280
Speaker 1: for less. You're saying no, I'm just browsing, and they're saying, well,

444
00:17:58,280 --> 00:17:59,640
Speaker 1: i'll give it to you for this, and you're like, whoa,

445
00:17:59,680 --> 00:18:01,960
Speaker 1: I didn't they were gonna exactly get much off the price.

446
00:18:02,000 --> 00:18:03,960
Speaker 1: And so that's I think a way to negotiate where

447
00:18:04,200 --> 00:18:08,280
Speaker 1: you're not being this like shrewd, intense, mean spirit mean

448
00:18:08,320 --> 00:18:08,840
Speaker 1: spirited person.

449
00:18:08,880 --> 00:18:10,760
Speaker 2: Yes, I just saw something else too. So I just

450
00:18:11,359 --> 00:18:13,679
Speaker 2: within the context of golf balls, something that the golfers

451
00:18:13,720 --> 00:18:15,240
Speaker 2: would do would be like hey, like they're always trying

452
00:18:15,280 --> 00:18:17,800
Speaker 2: to get in like one more ball. And so I

453
00:18:17,840 --> 00:18:20,879
Speaker 2: think in a similar way saying, hey, you know you

454
00:18:20,880 --> 00:18:22,280
Speaker 2: said no to this price, but what if I bought

455
00:18:22,280 --> 00:18:24,159
Speaker 2: two of them? Yeah, because what you're then doing is

456
00:18:24,200 --> 00:18:25,760
Speaker 2: you're not paying them the least amount of money. You're

457
00:18:25,760 --> 00:18:28,119
Speaker 2: actually providing them more business. They are moving more products,

458
00:18:28,160 --> 00:18:29,520
Speaker 2: and you've got a gift for your sister or something

459
00:18:29,560 --> 00:18:32,320
Speaker 2: like yeah, well, like don't folks like make best friends

460
00:18:32,320 --> 00:18:34,040
Speaker 2: on cruises and stuff like that, like buy something for

461
00:18:34,080 --> 00:18:34,960
Speaker 2: your cabin mates.

462
00:18:35,160 --> 00:18:36,800
Speaker 1: Is that what I'm missing out? I've heard folks talk

463
00:18:36,800 --> 00:18:38,119
Speaker 1: about that if I want to cruise, I'm gonna find

464
00:18:38,160 --> 00:18:39,640
Speaker 1: a new best friend because you're just stuck on a boat,

465
00:18:39,640 --> 00:18:41,200
Speaker 1: so you like talk and there's a lot of socialism.

466
00:18:41,240 --> 00:18:42,439
Speaker 1: Better hope I never go on a cruise.

467
00:18:43,200 --> 00:18:46,000
Speaker 2: All that they said, buy something for family or friends.

468
00:18:46,000 --> 00:18:47,679
Speaker 2: There's somebody you met on the boat because then you're

469
00:18:47,720 --> 00:18:49,879
Speaker 2: able to get the best price per unit, so you

470
00:18:49,920 --> 00:18:52,000
Speaker 2: are getting a good deal, but you're also so you win.

471
00:18:52,480 --> 00:18:54,639
Speaker 2: But then they win because they're moving more product, because

472
00:18:54,720 --> 00:18:57,439
Speaker 2: what are they gonna do with, you know, thirty machetes, like, like,

473
00:18:57,600 --> 00:18:59,320
Speaker 2: they want to move product and they got to get

474
00:18:59,320 --> 00:19:01,960
Speaker 2: a bunch of teen boy getting that bulk discount. I yeah,

475
00:19:02,000 --> 00:19:03,120
Speaker 2: that's a win win scenario.

476
00:19:03,240 --> 00:19:04,800
Speaker 1: I think it's a good idea to know a few

477
00:19:04,840 --> 00:19:07,640
Speaker 1: basic words in the local language too. It just helps

478
00:19:07,680 --> 00:19:09,439
Speaker 1: you're to connect with the people who are who are

479
00:19:09,480 --> 00:19:12,639
Speaker 1: selling the products in a little bit better way, and

480
00:19:12,640 --> 00:19:15,160
Speaker 1: that goes a long way in that kind of interpersonal connection.

481
00:19:15,640 --> 00:19:18,440
Speaker 1: That means they're more likely to, I don't know, budge

482
00:19:18,480 --> 00:19:20,520
Speaker 1: on the price even if you're not kind of trying

483
00:19:20,520 --> 00:19:23,080
Speaker 1: to hammer the price down. And I also wanted to

484
00:19:23,119 --> 00:19:24,959
Speaker 1: briefly touch them out on how to pay for stuff

485
00:19:25,200 --> 00:19:27,639
Speaker 1: when you're in a foreign country. Cash is going to

486
00:19:27,680 --> 00:19:30,400
Speaker 1: be king in many of the kind of market style transactions.

487
00:19:30,440 --> 00:19:32,800
Speaker 1: You're not gonna be like, oh do you take Apple pay,

488
00:19:32,960 --> 00:19:34,520
Speaker 1: And they're gonna be like, I don't even know what

489
00:19:34,520 --> 00:19:36,600
Speaker 1: that is, or they might and I'm sure in some

490
00:19:36,640 --> 00:19:39,080
Speaker 1: of these markets they've gotten so they do. But I

491
00:19:39,119 --> 00:19:42,040
Speaker 1: think cash still, because of transaction fees and stuff like that,

492
00:19:42,160 --> 00:19:43,959
Speaker 1: is going to be the best thing. Some of these

493
00:19:44,000 --> 00:19:47,040
Speaker 1: vendors won't accept credit cards, and cash is how they're

494
00:19:47,080 --> 00:19:50,040
Speaker 1: typically going to want to transact. If you're going to

495
00:19:50,040 --> 00:19:51,679
Speaker 1: get cash out, it's a good idea to use a

496
00:19:51,720 --> 00:19:54,680
Speaker 1: debit card at a local ATM to pull that cash out.

497
00:19:54,920 --> 00:19:58,600
Speaker 1: So make sure your bank doesn't charge foreign transaction fees

498
00:19:58,680 --> 00:20:01,520
Speaker 1: when you're taking cash out. So Discovering Capital one, those

499
00:20:01,560 --> 00:20:04,240
Speaker 1: are two banks we talk about regularly. They don't charge

500
00:20:04,280 --> 00:20:07,080
Speaker 1: anything to pull money out overseas from your bank account,

501
00:20:07,160 --> 00:20:08,840
Speaker 1: and you're not going to be charged an ATM fee

502
00:20:08,880 --> 00:20:11,119
Speaker 1: either if you pull the money out from an ATM

503
00:20:11,160 --> 00:20:14,240
Speaker 1: that is in their network. So sure, like think about that.

504
00:20:14,840 --> 00:20:17,200
Speaker 1: If you get money the wrong way in a foreign country,

505
00:20:17,359 --> 00:20:20,159
Speaker 1: you're going to pay the equivalent of multiple percentage points

506
00:20:20,400 --> 00:20:22,280
Speaker 1: of the money you're pulling out. That money could have

507
00:20:22,320 --> 00:20:24,640
Speaker 1: been spent on the gifts instead of you know, being

508
00:20:24,640 --> 00:20:26,320
Speaker 1: paid to the banks for stupid fees.

509
00:20:26,440 --> 00:20:28,600
Speaker 2: Exactly, pay attention to those fees. Yeah, we're talking about

510
00:20:28,600 --> 00:20:31,040
Speaker 2: the actual logistics here. If you try to exchange money

511
00:20:31,040 --> 00:20:32,560
Speaker 2: in other ways, you're going to end up paying more

512
00:20:32,920 --> 00:20:36,440
Speaker 2: and use a credit card with no foreign transaction fees

513
00:20:36,440 --> 00:20:39,000
Speaker 2: for other purchases where credit cards are accepted, and that's

514
00:20:39,000 --> 00:20:40,879
Speaker 2: something that you can easily do, especially with a lot

515
00:20:40,880 --> 00:20:41,800
Speaker 2: of the Capital one cards.

516
00:20:41,880 --> 00:20:42,879
Speaker 1: Yeah, but let.

517
00:20:42,720 --> 00:20:45,560
Speaker 2: Them, you know, a lot of times it certainly doesn't

518
00:20:45,600 --> 00:20:47,000
Speaker 2: hurt to give them the heads up that you are

519
00:20:47,000 --> 00:20:49,119
Speaker 2: going to be traveling outside of the country. But if

520
00:20:49,160 --> 00:20:52,080
Speaker 2: a retailer asks you if you'd like to pay for

521
00:20:52,119 --> 00:20:55,280
Speaker 2: an item in local currency or in dollars. So let's

522
00:20:55,280 --> 00:20:57,520
Speaker 2: say you're at a restaurant or someplace where they you know,

523
00:20:57,800 --> 00:20:59,359
Speaker 2: you've got the device there, and you get to choose

524
00:20:59,359 --> 00:21:00,800
Speaker 2: oh yea, and they bring to the table one of

525
00:21:00,840 --> 00:21:02,760
Speaker 2: the two ex don't do in the US, which makes

526
00:21:02,800 --> 00:21:05,280
Speaker 2: no sense to me. But well, opt for the local

527
00:21:05,520 --> 00:21:08,040
Speaker 2: currency because many folks are going to feel more comfortable

528
00:21:08,080 --> 00:21:09,960
Speaker 2: paying in their home currency because they think, well that's

529
00:21:10,320 --> 00:21:12,159
Speaker 2: what's well, that's what I should be doing right. But no,

530
00:21:12,280 --> 00:21:14,479
Speaker 2: it's actually it's done from an exchange rate perspective. You're

531
00:21:14,480 --> 00:21:17,040
Speaker 2: gonna get the absolute best rate by paying there in

532
00:21:17,080 --> 00:21:19,080
Speaker 2: the local currency and allowing your bank to make that

533
00:21:19,119 --> 00:21:19,880
Speaker 2: exchange for you.

534
00:21:19,800 --> 00:21:21,639
Speaker 1: On the back end. That's right, exactly right. And then

535
00:21:21,680 --> 00:21:24,440
Speaker 1: so yeah, Sarah, pay attention to those little those little things,

536
00:21:24,480 --> 00:21:27,200
Speaker 1: because yeah, we don't want you needlessly forking over money

537
00:21:27,240 --> 00:21:29,360
Speaker 1: you don't need to. And then when it comes to haggling,

538
00:21:29,960 --> 00:21:32,159
Speaker 1: maybe get into the spirit of haggling and realize that

539
00:21:32,200 --> 00:21:35,440
Speaker 1: it's part of the culture. Enjoy it and save yourself

540
00:21:35,440 --> 00:21:37,800
Speaker 1: a little bit of money. But maybe don't go overboard,

541
00:21:37,800 --> 00:21:39,480
Speaker 1: don't go hogwise. It sounds like Sarah's not gonna do

542
00:21:39,520 --> 00:21:42,000
Speaker 1: that anyway. So all right, Matt, we've got more questions

543
00:21:42,000 --> 00:21:44,560
Speaker 1: to get to, including one about a life insurance policy

544
00:21:44,600 --> 00:21:46,439
Speaker 1: we're not big fans of. We'll talk about that and

545
00:21:46,480 --> 00:21:56,280
Speaker 1: more right after this, Joe, we.

546
00:21:55,960 --> 00:21:58,119
Speaker 2: Are back from the break. We've got more personal finance

547
00:21:58,240 --> 00:22:00,680
Speaker 2: questions to get too. We're now going to hear from

548
00:22:00,680 --> 00:22:03,520
Speaker 2: a listener who's asking about the world's greatest and the

549
00:22:03,520 --> 00:22:06,280
Speaker 2: most tax optimized retirement account, at least here in the

550
00:22:06,320 --> 00:22:08,480
Speaker 2: United States. But she wants to make sure that she's

551
00:22:08,640 --> 00:22:09,640
Speaker 2: using it properly.

552
00:22:10,160 --> 00:22:13,000
Speaker 5: Hi, met Angel, this is Chelsea in Massachusetts. I have

553
00:22:13,040 --> 00:22:16,960
Speaker 5: a question about investing my HSA dollars. I've been hesitant

554
00:22:17,000 --> 00:22:19,960
Speaker 5: to invest my HSA money because I don't fully understand

555
00:22:19,960 --> 00:22:22,159
Speaker 5: how it works, and I've been told the fees are high.

556
00:22:22,600 --> 00:22:25,200
Speaker 5: I have a Lively account and they partner with Schwab

557
00:22:25,320 --> 00:22:29,399
Speaker 5: for their investment accounts. I've basically been storing my HSA

558
00:22:29,520 --> 00:22:33,040
Speaker 5: dollars from previous jobs Inlively, but I think I should

559
00:22:33,040 --> 00:22:37,160
Speaker 5: be letting that money grow. So when I invest into

560
00:22:37,200 --> 00:22:40,600
Speaker 5: a health savings brokerage account, can that money still only

561
00:22:40,640 --> 00:22:45,000
Speaker 5: be used for qualifying medical expenses? Are the fees actually

562
00:22:45,080 --> 00:22:47,280
Speaker 5: higher for this type of account or does that just

563
00:22:47,320 --> 00:22:52,199
Speaker 5: depend on the brokerage? And should I only withdraw this

564
00:22:52,400 --> 00:22:56,240
Speaker 5: money in five or more years like other brokerage accounts?

565
00:22:57,000 --> 00:23:00,600
Speaker 5: And lastly, am I able to move this money Schwab

566
00:23:00,760 --> 00:23:04,560
Speaker 5: if I wanted to at some point, for example, into Vanguard,

567
00:23:04,560 --> 00:23:07,440
Speaker 5: where I have my other brokerage accounts. Thanks?

568
00:23:07,840 --> 00:23:10,359
Speaker 1: All right, Matt, You and I we talk about investing

569
00:23:10,560 --> 00:23:14,480
Speaker 1: HSA dollars on the show, and I guess say I

570
00:23:14,520 --> 00:23:18,280
Speaker 1: also get why Chelsea's reticent on this right, because even

571
00:23:18,280 --> 00:23:20,440
Speaker 1: when we talk about those things like it doesn't mean

572
00:23:20,520 --> 00:23:23,280
Speaker 1: that investing money in your AHSA makes sense for every

573
00:23:23,359 --> 00:23:25,919
Speaker 1: single person who's listening. That's true to the show. And

574
00:23:25,960 --> 00:23:28,119
Speaker 1: the devil is in the details on so many personal

575
00:23:28,160 --> 00:23:30,800
Speaker 1: finance questions, which is why when we talk about let's say,

576
00:23:30,800 --> 00:23:34,919
Speaker 1: personal finance advice on TikTok, it's not that it's horrid

577
00:23:35,160 --> 00:23:38,680
Speaker 1: or even ill intentioned, although some of it is. It's

578
00:23:38,720 --> 00:23:41,240
Speaker 1: typically that there's just not enough space to talk about

579
00:23:41,280 --> 00:23:43,320
Speaker 1: the nuance of whether or not it makes sense for

580
00:23:43,400 --> 00:23:46,119
Speaker 1: the person who's actually receiving the content. And we just

581
00:23:46,160 --> 00:23:49,359
Speaker 1: wouldn't ever want a blanket tell everyone, hey, max out

582
00:23:49,400 --> 00:23:51,880
Speaker 1: at your HSA, invest those at dollars one hundred percent

583
00:23:51,880 --> 00:23:53,480
Speaker 1: in the stock market. You know. That's why we have

584
00:23:53,640 --> 00:23:55,400
Speaker 1: like say, oh, are you in the wealth building phase

585
00:23:55,400 --> 00:23:57,280
Speaker 1: of your life? Are you in the wealth preservation phase

586
00:23:57,320 --> 00:23:59,480
Speaker 1: of your life? There's there's different strokes for different folks,

587
00:23:59,520 --> 00:24:01,639
Speaker 1: depending on their goals and depending on what's going on

588
00:24:02,040 --> 00:24:04,800
Speaker 1: in their financial live at this moment in time and

589
00:24:05,040 --> 00:24:07,960
Speaker 1: how long they've maybe been kind of pursuing financial independence.

590
00:24:08,359 --> 00:24:11,440
Speaker 1: I think socking money into an HSA and investing it

591
00:24:11,480 --> 00:24:13,480
Speaker 1: is going to be the route that makes sense for

592
00:24:13,560 --> 00:24:15,560
Speaker 1: a whole lot of How to Money listeners who are

593
00:24:15,560 --> 00:24:19,359
Speaker 1: well on their way towards financial independence, but for other people, Right,

594
00:24:19,400 --> 00:24:23,000
Speaker 1: even though the AHSA is the most tax advantaged account

595
00:24:23,080 --> 00:24:27,000
Speaker 1: in existence, it still is likely should be further down

596
00:24:27,000 --> 00:24:28,600
Speaker 1: on their priority links is true.

597
00:24:28,680 --> 00:24:32,240
Speaker 2: Yeah, it's a slightly more advanced approach towards retirement planning.

598
00:24:32,880 --> 00:24:35,879
Speaker 2: And Chelsea, you mentioned that the fees can be high.

599
00:24:36,000 --> 00:24:36,760
Speaker 1: That is true.

600
00:24:36,920 --> 00:24:39,159
Speaker 2: That's at least one of the reasons why some folks

601
00:24:39,280 --> 00:24:42,560
Speaker 2: might opt to prioritize other financial goals and other retirement

602
00:24:42,560 --> 00:24:46,600
Speaker 2: accounts ahead of their HSA. Many health savings accounts come

603
00:24:46,640 --> 00:24:50,520
Speaker 2: with ridiculous administrative and fees attached to the funds that

604
00:24:50,560 --> 00:24:53,000
Speaker 2: you can invest in. So we're talking about like statement

605
00:24:53,040 --> 00:24:55,879
Speaker 2: fees so well exit fees for instance. It can be

606
00:24:55,920 --> 00:24:57,119
Speaker 2: a fee laden nightmare.

607
00:24:57,280 --> 00:24:58,480
Speaker 1: Like you want to get out of that HSA with

608
00:24:58,520 --> 00:24:59,959
Speaker 1: high fees, you're gonna pay more fee you got to pay.

609
00:25:00,000 --> 00:25:02,560
Speaker 2: There's a feel on top of that. The CFPB, the

610
00:25:02,560 --> 00:25:05,639
Speaker 2: Consumer Financial Protection Bureau, they actually put out a report

611
00:25:05,960 --> 00:25:09,000
Speaker 2: about junk fees in HSA accounts.

612
00:25:08,960 --> 00:25:09,960
Speaker 1: Back earlier this year.

613
00:25:10,560 --> 00:25:12,920
Speaker 2: But you're with Lively, and they are one of the

614
00:25:13,160 --> 00:25:16,600
Speaker 2: two best players out there in the HSA space. They're

615
00:25:16,760 --> 00:25:19,920
Speaker 2: alongside Fidelity, they are the other great player. You don't

616
00:25:19,920 --> 00:25:23,280
Speaker 2: have to really worry about fees. Fortunately with Lively. You

617
00:25:23,280 --> 00:25:25,040
Speaker 2: can stick your money, let's say in an S and

618
00:25:25,080 --> 00:25:27,760
Speaker 2: P five hundred fund that has a point zero two

619
00:25:27,800 --> 00:25:31,080
Speaker 2: percent expense ratio of that, which is totally awesome.

620
00:25:31,160 --> 00:25:32,359
Speaker 1: It's about as good as it gets.

621
00:25:32,560 --> 00:25:34,880
Speaker 2: Yeah, literally, well, I guess it could be point zero

622
00:25:34,920 --> 00:25:37,800
Speaker 2: one or it could be free, but point zero two

623
00:25:37,920 --> 00:25:41,000
Speaker 2: that's great, that's totally fantastic. I will say there is

624
00:25:41,040 --> 00:25:44,080
Speaker 2: a twenty four dollars annual fee that's not my favorite,

625
00:25:44,080 --> 00:25:47,360
Speaker 2: but it's still far better than what many other providers

626
00:25:47,359 --> 00:25:47,840
Speaker 2: are charging.

627
00:25:47,920 --> 00:25:50,960
Speaker 1: One of those other charges that you mentioned, like the

628
00:25:51,240 --> 00:25:53,280
Speaker 1: junk fees and stuff like that, don't exist with Lively.

629
00:25:53,359 --> 00:25:55,520
Speaker 2: Yeah, they're not even there. So twenty four it's not

630
00:25:55,560 --> 00:25:57,320
Speaker 2: that bad. And you might even be tempted to say, well,

631
00:25:57,320 --> 00:25:59,320
Speaker 2: because there's a way to avoid that fee by not

632
00:25:59,400 --> 00:26:02,800
Speaker 2: investing first three thousand dollars. They say, hey, keep three

633
00:26:02,800 --> 00:26:04,440
Speaker 2: thousand dollars in here, and then beyond that you can

634
00:26:04,480 --> 00:26:06,399
Speaker 2: invest your dollars just you know, let's just keep that

635
00:26:06,400 --> 00:26:08,040
Speaker 2: three thousand dollars in cash so we can do stuff

636
00:26:08,080 --> 00:26:11,040
Speaker 2: with that money basically. Yeah, So when you think about

637
00:26:11,040 --> 00:26:12,399
Speaker 2: it that way, it just comes down to the numbers.

638
00:26:12,400 --> 00:26:14,719
Speaker 2: Do you think that you will earn? And so it's

639
00:26:14,720 --> 00:26:17,280
Speaker 2: a twenty four dollars fee, we're talking about three thousand dollars.

640
00:26:17,680 --> 00:26:20,080
Speaker 2: You're roughly talking about one percent of three thousand dollars

641
00:26:20,200 --> 00:26:22,119
Speaker 2: is what that's thirty bucks. That's pretty did close to

642
00:26:22,160 --> 00:26:24,240
Speaker 2: twenty four percent, right, So do you think you're gonna

643
00:26:24,280 --> 00:26:26,560
Speaker 2: earn more than one percent in the market or you

644
00:26:26,640 --> 00:26:29,480
Speaker 2: to invest those dollars. There's not a guarantee that you will,

645
00:26:29,520 --> 00:26:30,399
Speaker 2: but based.

646
00:26:30,160 --> 00:26:32,400
Speaker 1: On you had a long time horise, based on history

647
00:26:32,920 --> 00:26:34,440
Speaker 1: and probably going to you look at this year.

648
00:26:34,880 --> 00:26:37,160
Speaker 2: I'm not sure when Chelsea's gonna listen to this episode,

649
00:26:37,200 --> 00:26:39,040
Speaker 2: but we're looking at close to thirty percent in the

650
00:26:39,080 --> 00:26:41,399
Speaker 2: S and P five hundred year to date, so you know,

651
00:26:41,760 --> 00:26:43,880
Speaker 2: pretty good chances that you're gonna get over one percent. Yeah,

652
00:26:44,040 --> 00:26:45,240
Speaker 2: that's all I'm gonna say. If it was me, I

653
00:26:45,280 --> 00:26:46,160
Speaker 2: would feel comfortable.

654
00:26:46,280 --> 00:26:49,800
Speaker 1: November returns alone, we're like almost six percent. So yeah,

655
00:26:49,920 --> 00:26:52,199
Speaker 1: and you also, Chelsea, you asked about whether or not

656
00:26:52,280 --> 00:26:54,200
Speaker 1: the money that's growing in that account has to be

657
00:26:54,280 --> 00:26:58,440
Speaker 1: used for qualifying medical expenses. The answer is yes mostly,

658
00:26:59,040 --> 00:27:02,000
Speaker 1: And so the whole that makes the HSA so great,

659
00:27:02,160 --> 00:27:06,040
Speaker 1: The reason it is the best, most highly favored tax

660
00:27:06,040 --> 00:27:08,720
Speaker 1: advantage retirement account in existence if you let it be,

661
00:27:09,359 --> 00:27:12,960
Speaker 1: is because if you let the money grow inside investments

662
00:27:13,000 --> 00:27:14,879
Speaker 1: like an S and P five hundred fund, and you

663
00:27:14,920 --> 00:27:17,800
Speaker 1: pay for your current medical expenses out of pocket, you're

664
00:27:17,840 --> 00:27:22,000
Speaker 1: growing money to be spent for medical expenses specifically. And

665
00:27:22,040 --> 00:27:24,080
Speaker 1: then the way you do it is you wait years

666
00:27:24,200 --> 00:27:27,359
Speaker 1: or decades to tap the HSA for those expenses that

667
00:27:27,359 --> 00:27:29,840
Speaker 1: you incurred many, many years ago. Right, You would only

668
00:27:29,840 --> 00:27:31,960
Speaker 1: want to take this route if you can actually afford

669
00:27:32,119 --> 00:27:34,280
Speaker 1: to not touch that money for many years. Though you

670
00:27:34,320 --> 00:27:37,160
Speaker 1: said five years, I think that's a reasonable minimum timeline.

671
00:27:37,200 --> 00:27:38,000
Speaker 1: That makes that's a.

672
00:27:37,960 --> 00:27:39,000
Speaker 2: Great length of time.

673
00:27:39,040 --> 00:27:40,840
Speaker 1: I love that she said that. Yeah, So if you've

674
00:27:40,840 --> 00:27:46,040
Speaker 1: got that as a minimum, then I say invest this money,

675
00:27:46,160 --> 00:27:47,720
Speaker 1: and if you think you might need it in the

676
00:27:47,720 --> 00:27:50,439
Speaker 1: next two or three years, it's still smart to funnel

677
00:27:50,480 --> 00:27:53,280
Speaker 1: money through the HSA just to reduce your taxes, but

678
00:27:53,320 --> 00:27:55,000
Speaker 1: don't invest it because you're going to need to tap

679
00:27:55,040 --> 00:27:57,200
Speaker 1: it sooner rather than later. And you don't want less

680
00:27:57,240 --> 00:28:00,720
Speaker 1: money than what you started off with. So yeah, basically,

681
00:28:01,280 --> 00:28:02,720
Speaker 1: if your timeline is long enough and you've got the

682
00:28:02,720 --> 00:28:06,159
Speaker 1: financial flexibility to pay for those healthcare expenses out of pocket,

683
00:28:06,400 --> 00:28:09,359
Speaker 1: investing the money into HSA is a no brainer exactly. Yeah.

684
00:28:09,400 --> 00:28:11,080
Speaker 2: And the reason is the best. I mean, we haven't

685
00:28:11,080 --> 00:28:13,040
Speaker 2: mentioned this yet, the triple tax advantage. The money goes

686
00:28:13,040 --> 00:28:15,560
Speaker 2: in their pre tax grows tax deferred, and when you

687
00:28:15,600 --> 00:28:18,560
Speaker 2: withdraw it for those qualified distributions, like you said, Jill,

688
00:28:18,640 --> 00:28:21,439
Speaker 2: it also is tax free. But the best way to

689
00:28:21,560 --> 00:28:22,280
Speaker 2: tap this funds.

690
00:28:22,320 --> 00:28:24,200
Speaker 1: It's literally like the only thing we know of where

691
00:28:24,200 --> 00:28:26,240
Speaker 1: you can have money coming into your life that never

692
00:28:26,280 --> 00:28:27,560
Speaker 1: gets completely free.

693
00:28:27,680 --> 00:28:31,199
Speaker 2: Yeah. And so it's so you qualified this for you know,

694
00:28:31,560 --> 00:28:35,239
Speaker 2: because she asked about qualifying medical expenses, and I mean

695
00:28:35,280 --> 00:28:37,520
Speaker 2: the answer is yes. So like that's what like the

696
00:28:37,600 --> 00:28:39,120
Speaker 2: rule stipulate that you have to it has to be

697
00:28:39,200 --> 00:28:42,959
Speaker 2: reimbursable qualified expenses, and so that's like basically what it

698
00:28:43,000 --> 00:28:46,719
Speaker 2: is that you can reimburse. But when you reimburse yourself

699
00:28:46,760 --> 00:28:49,800
Speaker 2: like that, like that's the true trick because that exactly,

700
00:28:49,840 --> 00:28:52,320
Speaker 2: and so it truly can be years and even decades

701
00:28:52,320 --> 00:28:52,880
Speaker 2: down the road.

702
00:28:53,680 --> 00:28:56,600
Speaker 1: Hernia surgery, and you can say pay like let's say

703
00:28:56,600 --> 00:28:57,960
Speaker 1: it's twenty two hundred bucks, or.

704
00:28:57,920 --> 00:29:00,440
Speaker 2: Eat something as small as like I don't know what,

705
00:29:00,600 --> 00:29:03,960
Speaker 2: like another qualified medical buying aspirin, So it doesn't have

706
00:29:04,000 --> 00:29:05,840
Speaker 2: to necessarily be something super major.

707
00:29:05,920 --> 00:29:08,560
Speaker 1: I like to do with the weird stuff though, right, but.

708
00:29:08,520 --> 00:29:10,280
Speaker 2: You have to hang on to those receipts getting a.

709
00:29:10,200 --> 00:29:14,120
Speaker 1: Weird, ugly growth removed from your body, like whatever that is,

710
00:29:14,200 --> 00:29:16,000
Speaker 1: keep the receipt you're right, and then yeah, you can

711
00:29:16,000 --> 00:29:17,520
Speaker 1: do it four years down the road. You can do

712
00:29:17,560 --> 00:29:19,400
Speaker 1: it forty exactly.

713
00:29:19,440 --> 00:29:21,400
Speaker 2: And that's the only downside to this approach is that

714
00:29:21,440 --> 00:29:24,520
Speaker 2: it does require a little bit like some more record

715
00:29:24,600 --> 00:29:27,480
Speaker 2: keeping on your on your behalf. So if you are

716
00:29:27,520 --> 00:29:30,360
Speaker 2: not a super organized person, like some folks, will just

717
00:29:30,360 --> 00:29:32,280
Speaker 2: take all the receipts. It's the shoe box approach. You

718
00:29:32,280 --> 00:29:34,160
Speaker 2: throw all your receipts in a shoebox, you keep up

719
00:29:34,200 --> 00:29:36,720
Speaker 2: with them. That's one approach. Another approach might be just

720
00:29:36,800 --> 00:29:38,920
Speaker 2: keeping up with them on a spreadsheet. I've never had

721
00:29:38,920 --> 00:29:41,080
Speaker 2: an HSA. Personally, I'm a little jealous that you've got

722
00:29:41,080 --> 00:29:43,680
Speaker 2: this available to Chelsea, but that's the approach that I

723
00:29:43,720 --> 00:29:46,840
Speaker 2: would be taking. So it does require some organization on

724
00:29:46,880 --> 00:29:49,480
Speaker 2: your parts, but we dish out the details in an

725
00:29:49,560 --> 00:29:50,280
Speaker 2: article up.

726
00:29:50,160 --> 00:29:50,600
Speaker 1: On the site.

727
00:29:50,680 --> 00:29:52,640
Speaker 2: We'll link to that folly to where you have all

728
00:29:52,640 --> 00:29:55,560
Speaker 2: the particulars. They are laid out for you. But one,

729
00:29:55,840 --> 00:29:58,160
Speaker 2: like the other really cool aspect about HSA money that

730
00:29:58,200 --> 00:30:00,440
Speaker 2: I wanted to mention is that it can function like

731
00:30:00,520 --> 00:30:05,560
Speaker 2: another retirement account by effectively turning into an IRA.

732
00:30:05,440 --> 00:30:06,840
Speaker 1: At age sixty five.

733
00:30:07,000 --> 00:30:10,600
Speaker 2: And this requires no organization. And so if you are

734
00:30:10,640 --> 00:30:13,600
Speaker 2: super healthy and you have far more HSA dollars there

735
00:30:14,080 --> 00:30:18,480
Speaker 2: than medical expenses, and so therefore you essentially don't have

736
00:30:18,520 --> 00:30:21,240
Speaker 2: a way of reimbursing yourself because you don't actually have

737
00:30:21,320 --> 00:30:22,520
Speaker 2: the expenses on hand, which is.

738
00:30:22,440 --> 00:30:23,920
Speaker 1: Something people worry about. They're like, oh, am, I gonna

739
00:30:23,960 --> 00:30:26,160
Speaker 1: what for fun? What if I overfund this account? And

740
00:30:26,240 --> 00:30:28,480
Speaker 1: then get I mean, worst thing of all, I'm so

741
00:30:28,600 --> 00:30:31,120
Speaker 1: super duper healthy, I don't need the money for that purpose.

742
00:30:31,480 --> 00:30:32,600
Speaker 1: What happens then, well, you.

743
00:30:32,640 --> 00:30:34,720
Speaker 2: Can tap your HSA at that point at the age

744
00:30:34,720 --> 00:30:37,240
Speaker 2: of sixty five, and you just pay ordinary income tax

745
00:30:37,440 --> 00:30:40,520
Speaker 2: like you would on a traditional IRA. So obviously the

746
00:30:40,960 --> 00:30:44,040
Speaker 2: money has gone in their pre tax it has grown

747
00:30:44,320 --> 00:30:46,640
Speaker 2: tax deferred, and you just pay taxes on the back end,

748
00:30:46,720 --> 00:30:49,479
Speaker 2: just like with a traditional IRA traditional four to one

749
00:30:49,560 --> 00:30:51,640
Speaker 2: K it's not going to be triple tax advantaged at

750
00:30:51,640 --> 00:30:54,400
Speaker 2: that point, but it's still it's double tax advantage, so

751
00:30:54,520 --> 00:30:57,600
Speaker 2: it's still a reasonable consolation price in my opinion. All Right.

752
00:30:57,640 --> 00:31:00,880
Speaker 1: She also asked about moving her AHSA elsewhere. We would say,

753
00:31:01,040 --> 00:31:04,080
Speaker 1: probably don't do that. I mean, if you moved it

754
00:31:04,160 --> 00:31:06,920
Speaker 1: to Fidelity at some point, yeah, you'd be able to

755
00:31:06,960 --> 00:31:10,680
Speaker 1: avoid the twenty four dollars annual fee, and yeah, I'd

756
00:31:10,800 --> 00:31:12,280
Speaker 1: like to keep twenty four bucks in my pocket when

757
00:31:12,320 --> 00:31:14,960
Speaker 1: I can. And we like Fidelity ultimately because they're the

758
00:31:15,080 --> 00:31:18,040
Speaker 1: lowest cost provider in existence. But you're already with like

759
00:31:18,240 --> 00:31:21,840
Speaker 1: the second best HSA provider from everything we have read

760
00:31:21,920 --> 00:31:24,760
Speaker 1: and experienced, and so that's not something we'd prioritize. Like,

761
00:31:24,800 --> 00:31:27,680
Speaker 1: I would not be trying to move my HSA away

762
00:31:28,240 --> 00:31:30,880
Speaker 1: from one of the best providers out there unless there

763
00:31:30,960 --> 00:31:32,480
Speaker 1: was a compelling reason to do so, and I just

764
00:31:32,520 --> 00:31:35,760
Speaker 1: can't imagine that there is. Even if you're trying to

765
00:31:35,800 --> 00:31:40,280
Speaker 1: simplify things, well, simplification at the expense of extra expenses,

766
00:31:40,400 --> 00:31:43,000
Speaker 1: like higher costs in your AHSA is probably not worth it.

767
00:31:43,120 --> 00:31:45,680
Speaker 2: Totally and on top of that, she mentioned specifically Vanguard,

768
00:31:45,720 --> 00:31:48,560
Speaker 2: and Vanguard doesn't offer HSA, so they sold their HSA portfolio.

769
00:31:48,560 --> 00:31:50,560
Speaker 2: So that's not something that you can even consider. Yeah,

770
00:31:50,840 --> 00:31:53,200
Speaker 2: but they used to, but sadly no longer. Yeah, So

771
00:31:53,360 --> 00:31:56,120
Speaker 2: Chelsea invests those dollars as long as you have the

772
00:31:56,200 --> 00:31:59,560
Speaker 2: ability to pay those medical expenses out of pocket to

773
00:31:59,600 --> 00:32:01,160
Speaker 2: where that it's not going to set you back when

774
00:32:01,200 --> 00:32:02,920
Speaker 2: it comes to some of the other financial goals you

775
00:32:02,960 --> 00:32:03,520
Speaker 2: have in your life.

776
00:32:03,800 --> 00:32:04,000
Speaker 1: Joel.

777
00:32:04,080 --> 00:32:07,080
Speaker 2: Let's hear from another listener who I believe has a

778
00:32:07,440 --> 00:32:11,960
Speaker 2: solid foundation when it comes to the personal finance tendis

779
00:32:12,000 --> 00:32:14,600
Speaker 2: that she's lived by but now she's considering taking some

780
00:32:14,680 --> 00:32:16,680
Speaker 2: financial advice from a friend.

781
00:32:17,440 --> 00:32:21,480
Speaker 3: Hello, this is Molly from Indianapolis. A friend recently became

782
00:32:21,560 --> 00:32:24,320
Speaker 3: a financial advisor and is telling me that what I'm

783
00:32:24,400 --> 00:32:28,280
Speaker 3: missing in my retirement plan is a cash valued life insurance.

784
00:32:28,720 --> 00:32:31,880
Speaker 3: He also used whole life insurance or permanent life insurance.

785
00:32:32,360 --> 00:32:35,920
Speaker 3: His reasoning is that it's guaranteed payout, not based on

786
00:32:36,040 --> 00:32:39,440
Speaker 3: the market. Every financial book or podcast I've read or

787
00:32:39,480 --> 00:32:42,240
Speaker 3: listened to as said, term life insurance is the financially

788
00:32:42,280 --> 00:32:46,200
Speaker 3: responsible life insurance policy. Do you have any insights. I'm

789
00:32:46,280 --> 00:32:48,560
Speaker 3: not a beer drinker, but if you came to Indianapolis,

790
00:32:48,680 --> 00:32:51,600
Speaker 3: I'd take you to ash and Elmsider. Thank you very much.

791
00:32:51,800 --> 00:32:52,040
Speaker 2: Bye.

792
00:32:52,480 --> 00:32:55,560
Speaker 1: Oh, Matt. We don't usually drink cider, or I don't know,

793
00:32:55,600 --> 00:32:57,040
Speaker 1: maybe you do. I don't really ever drink, so I

794
00:32:57,120 --> 00:32:59,600
Speaker 1: know I will say, I think what I'm open to it.

795
00:33:00,080 --> 00:33:02,400
Speaker 1: I like cider, Yeah, it's just not something I seek out.

796
00:33:02,440 --> 00:33:04,640
Speaker 1: Our friend Andrew brought us cider back one time from

797
00:33:05,080 --> 00:33:07,800
Speaker 1: a sidery called an show is what it was called?

798
00:33:07,840 --> 00:33:09,320
Speaker 1: An XO? Is that how you say it? I think

799
00:33:09,360 --> 00:33:11,120
Speaker 1: so that's how Manna guess you say it. And I

800
00:33:11,320 --> 00:33:14,120
Speaker 1: just remember that being really good, particularly excellent. That might

801
00:33:14,200 --> 00:33:16,680
Speaker 1: be the only sider we've ever actually had on the show. Yeah,

802
00:33:17,320 --> 00:33:20,440
Speaker 1: but other than that, the siders I've tried I've not

803
00:33:20,520 --> 00:33:22,960
Speaker 1: been terribly impressed with. But I would be willing to

804
00:33:23,000 --> 00:33:25,680
Speaker 1: try it. Try cider with Molly if we ended up

805
00:33:25,720 --> 00:33:26,560
Speaker 1: in her neck of the woods.

806
00:33:26,840 --> 00:33:29,800
Speaker 2: Joel, you know actually that it is possible to diy

807
00:33:30,080 --> 00:33:31,479
Speaker 2: your own applesider at home.

808
00:33:31,520 --> 00:33:33,080
Speaker 1: Oh yes, I've heard it. You've you've done this before.

809
00:33:33,200 --> 00:33:34,880
Speaker 1: I have because I heard it was the mister money

810
00:33:34,960 --> 00:33:35,560
Speaker 1: Mustache method.

811
00:33:35,640 --> 00:33:38,480
Speaker 2: Wasn't it indeed, because this is like the most absolute

812
00:33:39,000 --> 00:33:42,720
Speaker 2: cheapest way to make a fermented beverage. And I've done this.

813
00:33:42,840 --> 00:33:45,160
Speaker 2: But you take a gallon of apple cider, dump a

814
00:33:45,880 --> 00:33:48,640
Speaker 2: seventy nine cent packet of champagne east in there. Uh

815
00:33:48,720 --> 00:33:51,200
Speaker 2: huh wait a couple of weeks boom. I'm not gonna

816
00:33:51,200 --> 00:33:53,240
Speaker 2: say it's delicious, but you got something to drink.

817
00:33:53,520 --> 00:33:55,480
Speaker 1: Now you can impress all of your friends' celevation.

818
00:33:55,840 --> 00:33:58,400
Speaker 2: You show up to a party. Well, yeah, you still

819
00:33:58,400 --> 00:34:01,080
Speaker 2: got a couple of weeks, so I don't know. Maybe

820
00:34:01,120 --> 00:34:03,840
Speaker 2: it's like a post holiday New Year's Yeah, yeah, take

821
00:34:03,840 --> 00:34:05,600
Speaker 2: it to the New Year's party, Like, hey, I made

822
00:34:05,640 --> 00:34:08,320
Speaker 2: this in my basement. Folks will look at you weird, Like,

823
00:34:08,560 --> 00:34:11,080
Speaker 2: as long as you drink it first. I think if

824
00:34:11,080 --> 00:34:12,279
Speaker 2: I had a friend who did that, I'd give it

825
00:34:12,320 --> 00:34:12,840
Speaker 2: an I.

826
00:34:12,800 --> 00:34:15,600
Speaker 1: Have a taste takes. Yeah. Right, let's talk about life insurance,

827
00:34:15,640 --> 00:34:17,960
Speaker 1: Matt and Molly has raised some red flags here, like

828
00:34:18,040 --> 00:34:20,800
Speaker 1: she said that this person was a friend, but I

829
00:34:20,880 --> 00:34:22,839
Speaker 1: am curious to know, like how close of a friend

830
00:34:22,880 --> 00:34:25,600
Speaker 1: are we talking about? Is this person who offered her

831
00:34:25,680 --> 00:34:28,960
Speaker 1: this advice which goes counter to everything else she's ever

832
00:34:29,040 --> 00:34:31,440
Speaker 1: read or heard. Are they more of an acquaintance, you know?

833
00:34:31,520 --> 00:34:33,000
Speaker 1: If so, they might be trying to steer you in

834
00:34:33,040 --> 00:34:35,719
Speaker 1: a certain direction to line their pockets. They stand to

835
00:34:35,760 --> 00:34:39,239
Speaker 1: make a sweet commission from the sale of this life

836
00:34:39,280 --> 00:34:42,279
Speaker 1: insurance policy that she's describing. Let's say that they're a

837
00:34:42,400 --> 00:34:44,480
Speaker 1: really good friend, though instead they're not just an acquaintance.

838
00:34:44,920 --> 00:34:47,879
Speaker 1: They might just not know any better. They might think

839
00:34:47,960 --> 00:34:50,120
Speaker 1: that this is a good idea, but not have the

840
00:34:50,200 --> 00:34:53,920
Speaker 1: requisite knowledge to maybe so make a good recommendation. That's

841
00:34:53,960 --> 00:34:57,120
Speaker 1: a generous interpretation, jool. Or they might not have well,

842
00:34:57,160 --> 00:34:58,880
Speaker 1: I'm just I'm trying to be generous. They might have

843
00:34:59,000 --> 00:35:02,520
Speaker 1: done enough exploration about where her personal finances are currently

844
00:35:02,600 --> 00:35:05,239
Speaker 1: to know that this isn't the best move for Mally either.

845
00:35:05,920 --> 00:35:09,440
Speaker 1: The truth is, the more complex forms of life insurance

846
00:35:09,440 --> 00:35:12,279
Speaker 1: they cost a lot more money, and they make sense

847
00:35:12,320 --> 00:35:15,240
Speaker 1: for a very small subset of people, right, typically incredibly

848
00:35:15,320 --> 00:35:17,680
Speaker 1: high income and net worth folks who have done like

849
00:35:17,800 --> 00:35:20,440
Speaker 1: everything else under the sun that they can from a

850
00:35:20,560 --> 00:35:24,240
Speaker 1: tax of advantage investing perspective. So, yeah, maybe that's Molly,

851
00:35:24,840 --> 00:35:28,560
Speaker 1: But for most people, these whole life policies just don't

852
00:35:28,600 --> 00:35:29,160
Speaker 1: make much sense.

853
00:35:29,280 --> 00:35:31,160
Speaker 2: Yeah, I mean, I think what you bring up a

854
00:35:31,200 --> 00:35:34,320
Speaker 2: good point as far as being able to take advantage

855
00:35:34,320 --> 00:35:37,680
Speaker 2: of all the other offerings. So Molly, have you fully

856
00:35:37,719 --> 00:35:41,440
Speaker 2: funded your four ohn k Ira, your HSA like we've

857
00:35:41,520 --> 00:35:43,839
Speaker 2: recently talked about, because your friend is you know, telling

858
00:35:43,880 --> 00:35:47,239
Speaker 2: you that this life insurance isn't dependent on market performance,

859
00:35:47,360 --> 00:35:49,680
Speaker 2: and that sure does sound nice, you know, at least

860
00:35:49,680 --> 00:35:51,759
Speaker 2: in down years, but the stock market it has been

861
00:35:51,800 --> 00:35:56,200
Speaker 2: an overwhelmingly lovely place to be over the course of history,

862
00:35:56,280 --> 00:35:58,560
Speaker 2: so you know, let's say one hundred years, but particularly

863
00:35:58,719 --> 00:35:59,359
Speaker 2: in recent years.

864
00:35:59,400 --> 00:36:01,080
Speaker 1: So you get that downside protection, but guess what you

865
00:36:01,200 --> 00:36:03,960
Speaker 1: also don't get Typically in some of these more complex

866
00:36:04,040 --> 00:36:06,600
Speaker 1: life insurance vehicles, you don't get full exposure of the upside.

867
00:36:06,600 --> 00:36:09,399
Speaker 2: I don't get the upside. So you guaranteed returns are nice,

868
00:36:09,440 --> 00:36:12,160
Speaker 2: but like, what do you guarantee? And it's not nearly

869
00:36:12,400 --> 00:36:14,839
Speaker 2: as nice as what you're going to earn in the market.

870
00:36:14,920 --> 00:36:17,799
Speaker 1: Seen in Tommy Boy, who I can guarantee a stake

871
00:36:17,880 --> 00:36:19,040
Speaker 1: by sticking a head up? I don't know.

872
00:36:19,239 --> 00:36:21,800
Speaker 2: Yeah, that was a funny scene, but you could do

873
00:36:21,880 --> 00:36:24,360
Speaker 2: the same thing in a savings account too. But you

874
00:36:24,520 --> 00:36:27,040
Speaker 2: want that exposure while you were at least in the

875
00:36:27,120 --> 00:36:29,359
Speaker 2: wealth building years of your life, which I believe you are,

876
00:36:30,440 --> 00:36:32,720
Speaker 2: and you know over the course of time you certainly

877
00:36:32,719 --> 00:36:34,080
Speaker 2: want to tone that down a bit as you get

878
00:36:34,080 --> 00:36:36,880
Speaker 2: closer to retirement. But the premise it's already flawed, the

879
00:36:37,040 --> 00:36:41,120
Speaker 2: ability to avoid not only what causes the market to

880
00:36:41,200 --> 00:36:43,040
Speaker 2: go down, but more often than not, causes the market

881
00:36:43,120 --> 00:36:44,840
Speaker 2: to go up, that being volatility.

882
00:36:44,920 --> 00:36:46,520
Speaker 1: Let's say you're a big Tailor Swift fan and someone

883
00:36:46,600 --> 00:36:49,560
Speaker 1: says like, ye here, I don't have to expose you

884
00:36:49,680 --> 00:36:52,320
Speaker 1: to a one on one hangout with Taylor Swift, that

885
00:36:52,680 --> 00:36:54,720
Speaker 1: your favorite restaurant. You're like, no, no, I want exposure

886
00:36:54,760 --> 00:36:56,480
Speaker 1: to that. What are you talking about? It's amazing how

887
00:36:56,520 --> 00:36:59,160
Speaker 1: people can sell something by saying, don't worry, we'll prevent

888
00:36:59,280 --> 00:37:01,400
Speaker 1: you having exposed to this, when what you should be

889
00:37:01,440 --> 00:37:03,839
Speaker 1: saying is why would I not want exposure to that thing?

890
00:37:04,680 --> 00:37:06,080
Speaker 1: I don't know why I came with that example of

891
00:37:06,120 --> 00:37:07,759
Speaker 1: Matt But if you're a Tea Swift fan, yeah, if

892
00:37:07,800 --> 00:37:09,720
Speaker 1: you are, that sounds fun. Yeah, and what if Travis

893
00:37:09,800 --> 00:37:10,400
Speaker 1: Kelce's there too?

894
00:37:10,560 --> 00:37:10,680
Speaker 3: Right?

895
00:37:11,040 --> 00:37:14,080
Speaker 1: But plus, this would take a massive diversion of resources

896
00:37:14,360 --> 00:37:15,640
Speaker 1: for you to be able to buy this policy.

897
00:37:15,760 --> 00:37:15,840
Speaker 5: Right.

898
00:37:16,120 --> 00:37:18,960
Speaker 1: Whole life insurance often costs ten x what term life

899
00:37:19,000 --> 00:37:21,120
Speaker 1: insurance is going to run you. So instead of forking

900
00:37:21,200 --> 00:37:23,600
Speaker 1: over forty bucks a month for a policy that's just

901
00:37:24,280 --> 00:37:27,600
Speaker 1: incredibly sufficient, you might be forking over four hundred bucks

902
00:37:27,800 --> 00:37:29,920
Speaker 1: a month, and that is a massive difference in your

903
00:37:29,920 --> 00:37:33,520
Speaker 1: monthly budget and it could prevent other meaningful financial goals

904
00:37:33,719 --> 00:37:36,560
Speaker 1: that you have. And term life, yes, it only covers

905
00:37:36,600 --> 00:37:39,360
Speaker 1: you for the duration of time where you truly need coverage.

906
00:37:39,400 --> 00:37:41,800
Speaker 1: So you might not have coverage at some point in

907
00:37:41,960 --> 00:37:44,640
Speaker 1: your late sixties, your seventies, or your eighties, but the

908
00:37:44,680 --> 00:37:46,080
Speaker 1: goal is to not need coverage at that point in

909
00:37:46,120 --> 00:37:49,040
Speaker 1: your life. Right hopefully after a fifteen, twenty or thirty

910
00:37:49,120 --> 00:37:51,400
Speaker 1: year term, whatever you deem sufficient for you, you're not

911
00:37:51,480 --> 00:37:54,040
Speaker 1: going to need a lick of coverage because your need

912
00:37:54,080 --> 00:37:56,799
Speaker 1: has gone away for insurance. Maybe you don't have minor

913
00:37:56,880 --> 00:37:59,520
Speaker 1: children who are dependent on your income anymore. 're also

914
00:37:59,600 --> 00:38:01,480
Speaker 1: at the same time, like you've been a diligent saver

915
00:38:01,640 --> 00:38:03,840
Speaker 1: and investor, and because of that, you don't have the

916
00:38:03,920 --> 00:38:06,600
Speaker 1: need for as much insurance. You've essentially achieve financial independence.

917
00:38:06,800 --> 00:38:09,280
Speaker 1: You don't have any many people who are financially relyant

918
00:38:09,320 --> 00:38:12,239
Speaker 1: on you, And it's this perfect scenario where your term

919
00:38:12,280 --> 00:38:15,680
Speaker 1: life insurance policy goes away, it's the perfect time because

920
00:38:15,960 --> 00:38:16,760
Speaker 1: you don't need it anymore.

921
00:38:16,760 --> 00:38:18,520
Speaker 2: You don't need it anymore. I mean that's a great

922
00:38:18,560 --> 00:38:20,319
Speaker 2: point as well, because I mean I didn't hear her

923
00:38:20,400 --> 00:38:24,000
Speaker 2: mention a number of dependents or a partner who might

924
00:38:24,040 --> 00:38:26,040
Speaker 2: be dependent on her income. And if that's the case,

925
00:38:26,120 --> 00:38:28,480
Speaker 2: this is a product that you necessarily need, even though

926
00:38:28,560 --> 00:38:32,440
Speaker 2: it's oftentimes on checklists of adulting right when it comes

927
00:38:32,480 --> 00:38:34,719
Speaker 2: to doing the smart thing with your money, Like if

928
00:38:34,760 --> 00:38:36,200
Speaker 2: you just have a dog, like you don't, you know,

929
00:38:36,239 --> 00:38:38,080
Speaker 2: I'm sorry, you don't need life insurance. Just make sure

930
00:38:38,680 --> 00:38:40,520
Speaker 2: your total friend that like, hey, if I were to die,

931
00:38:40,600 --> 00:38:43,319
Speaker 2: my dog goes with you, okay, And they're like yeah, cool, okay, Cool.

932
00:38:43,400 --> 00:38:47,160
Speaker 2: That's all you've been able to avoid all the sort

933
00:38:47,200 --> 00:38:51,520
Speaker 2: of unnecessarily unnecessary expensive hoops and accounts to fund. And

934
00:38:51,600 --> 00:38:53,359
Speaker 2: so that's from a life insurance standpoint, But if you're

935
00:38:53,360 --> 00:38:56,920
Speaker 2: thinking about it from a guaranteed income standpoint, don't forget

936
00:38:57,000 --> 00:39:01,000
Speaker 2: social Security that can act as retirement income that isn't

937
00:39:01,040 --> 00:39:03,959
Speaker 2: linked to market performance as well. I was recently talking

938
00:39:04,040 --> 00:39:06,920
Speaker 2: to a retiree a couple of weeks ago, and I

939
00:39:07,080 --> 00:39:10,239
Speaker 2: was really pumped to hear that they were Their entire

940
00:39:10,320 --> 00:39:12,279
Speaker 2: monthly budget was based on what they were receiving in

941
00:39:12,360 --> 00:39:15,839
Speaker 2: Social Security benefits, which is awesome. Which meant that their

942
00:39:15,880 --> 00:39:18,240
Speaker 2: ability to let their investments, which they have a decent

943
00:39:18,400 --> 00:39:21,120
Speaker 2: amount of, continue to not only ride, but to be

944
00:39:21,719 --> 00:39:24,799
Speaker 2: more aggressively invested in the stock market than I would

945
00:39:24,800 --> 00:39:27,320
Speaker 2: have expected at their age. But they have reaped the

946
00:39:27,400 --> 00:39:29,920
Speaker 2: rewards as they've been able to let that money basically

947
00:39:30,040 --> 00:39:31,600
Speaker 2: just continue to ride. So just keep that in mind

948
00:39:31,600 --> 00:39:34,239
Speaker 2: as well. This doesn't need to trendt a whole social

949
00:39:34,280 --> 00:39:37,480
Speaker 2: Security so additional point, but I wanted to mention that.

950
00:39:37,560 --> 00:39:40,440
Speaker 1: But this is another thing like where something like annuities

951
00:39:40,480 --> 00:39:42,840
Speaker 1: get sold to people, and the truth is social Security

952
00:39:42,880 --> 00:39:45,960
Speaker 1: acts as an annuity for the majority of the population,

953
00:39:46,440 --> 00:39:48,520
Speaker 1: and so like, do you actually need that product in

954
00:39:48,560 --> 00:39:51,240
Speaker 1: your life? Well, probably not, because you have an annuity

955
00:39:51,280 --> 00:39:53,279
Speaker 1: coming your way. You have something that is going to

956
00:39:53,320 --> 00:39:56,560
Speaker 1: at like a ballast a fixed method of income for

957
00:39:56,680 --> 00:39:59,279
Speaker 1: you in those retirement years. So why add to that

958
00:39:59,440 --> 00:40:02,359
Speaker 1: and why deplete your market exposure when that's actually something

959
00:40:02,400 --> 00:40:03,960
Speaker 1: you need so you can grow your wealth in order

960
00:40:04,000 --> 00:40:06,359
Speaker 1: to have an enjoyable retirement. So you kind of want

961
00:40:06,400 --> 00:40:09,080
Speaker 1: a mix of all of the above, and life insurance

962
00:40:09,160 --> 00:40:13,480
Speaker 1: for most people is an important part of preserving their wealth.

963
00:40:13,960 --> 00:40:15,680
Speaker 1: But you also want to make sure you choose the

964
00:40:15,840 --> 00:40:18,359
Speaker 1: right life insurance policy. And again we'll put a link

965
00:40:18,440 --> 00:40:20,879
Speaker 1: to an article about term life insurance, why we think

966
00:40:20,880 --> 00:40:23,120
Speaker 1: it's the best product for most people, and guess what

967
00:40:23,880 --> 00:40:26,520
Speaker 1: bonus fact, it's way cheaper. All right, Matt, We got

968
00:40:26,600 --> 00:40:28,759
Speaker 1: more to get to on this episode, including how do

969
00:40:28,800 --> 00:40:31,440
Speaker 1: you know when to stop investing? We'll get to that

970
00:40:31,680 --> 00:40:32,160
Speaker 1: right after this.

971
00:40:39,960 --> 00:40:42,200
Speaker 2: All right, so we are back from the break. It

972
00:40:42,320 --> 00:40:44,600
Speaker 2: is now time for the Facebook question of the week,

973
00:40:45,120 --> 00:40:48,640
Speaker 2: which is from an anonymous poster who wrote, how do

974
00:40:48,680 --> 00:40:50,719
Speaker 2: you know when you have saved enough for retirement and

975
00:40:50,800 --> 00:40:54,120
Speaker 2: can slow down investing? A little background. We have about

976
00:40:54,160 --> 00:40:57,640
Speaker 2: eight hundred thousand saved in retirement and other investment accounts,

977
00:40:57,880 --> 00:41:00,880
Speaker 2: and have about three hundred thousand in homequity. We have

978
00:41:01,120 --> 00:41:04,840
Speaker 2: about another forty thousand and saving his accounts. My husband

979
00:41:04,880 --> 00:41:07,359
Speaker 2: and I will both have pensions when we retire next

980
00:41:07,440 --> 00:41:11,200
Speaker 2: year at fifty nine and sixty one. Mine is about

981
00:41:11,239 --> 00:41:13,480
Speaker 2: twenty four hundred a month net and his is about

982
00:41:13,640 --> 00:41:16,319
Speaker 2: sixty five hundred a month net. We have two car

983
00:41:16,440 --> 00:41:19,000
Speaker 2: payments currently, but hope to pay those off soon, and

984
00:41:19,080 --> 00:41:22,120
Speaker 2: the only other debt is our house loan. Since I

985
00:41:22,200 --> 00:41:24,480
Speaker 2: retired early, I can no longer contribute to my four

986
00:41:24,600 --> 00:41:26,799
Speaker 2: or three B but I do max out my roth IRA.

987
00:41:27,600 --> 00:41:31,239
Speaker 2: In addition, I invest in a basic security account. I

988
00:41:31,280 --> 00:41:35,400
Speaker 2: assume she's meaning securities account so apreproachage. I'm working now

989
00:41:35,480 --> 00:41:38,080
Speaker 2: and have been focusing all my money into savings and investments,

990
00:41:38,160 --> 00:41:40,840
Speaker 2: but with our retirement accounts and pension and eventually social

991
00:41:40,880 --> 00:41:43,200
Speaker 2: security in the future, I'm curious if I can slow

992
00:41:43,239 --> 00:41:47,680
Speaker 2: down the investment and put that money elsewhere, like vacation. Oh,

993
00:41:48,680 --> 00:41:50,799
Speaker 2: that's like the most fun part of the whole question

994
00:41:50,880 --> 00:41:53,719
Speaker 2: there is that last words, Yeah, all the other things

995
00:41:53,719 --> 00:41:56,000
Speaker 2: that you could spend money on other than must I

996
00:41:56,160 --> 00:41:58,200
Speaker 2: like that she knows where she wants to put the money. Hey,

997
00:41:58,239 --> 00:42:00,319
Speaker 2: can I slow this down? Because I want to let

998
00:42:00,360 --> 00:42:03,200
Speaker 2: over here. And this is a great question, Matt, and

999
00:42:03,400 --> 00:42:05,839
Speaker 2: I like it. When it comes down to it, people

1000
00:42:05,840 --> 00:42:08,360
Speaker 2: who are listening most most of the.

1001
00:42:08,400 --> 00:42:10,279
Speaker 1: Head of money on it. It's a big majority of

1002
00:42:10,320 --> 00:42:13,880
Speaker 1: the head of money on is in their thirties, twenties,

1003
00:42:13,960 --> 00:42:16,440
Speaker 1: thirties and early forties. Right, so they are not to

1004
00:42:16,560 --> 00:42:17,960
Speaker 1: this point yet, forties.

1005
00:42:17,600 --> 00:42:20,480
Speaker 2: Fifties, who knows. I don't want to discriminate any we

1006
00:42:20,560 --> 00:42:22,160
Speaker 2: have clearly who.

1007
00:42:22,160 --> 00:42:24,520
Speaker 1: Are you know also nearing retirement age, which I love.

1008
00:42:24,920 --> 00:42:27,120
Speaker 1: But this is why we don't talk about, oh, you

1009
00:42:27,200 --> 00:42:30,600
Speaker 1: probably want to stop investing at this point, because it

1010
00:42:30,719 --> 00:42:32,520
Speaker 1: just depends on the majority of people we're speaking to

1011
00:42:32,680 --> 00:42:35,359
Speaker 1: are have a long time prison and they are like, hey,

1012
00:42:35,440 --> 00:42:36,880
Speaker 1: I've got a lot I want to accomplish over the

1013
00:42:36,920 --> 00:42:40,120
Speaker 1: next you know, many many years and decades when it

1014
00:42:40,200 --> 00:42:42,040
Speaker 1: comes to investing for retirement.

1015
00:42:41,680 --> 00:42:42,520
Speaker 2: They're still building that well.

1016
00:42:42,560 --> 00:42:44,600
Speaker 1: But the truth is we don't need to be forever investors. Like,

1017
00:42:44,680 --> 00:42:46,200
Speaker 1: that's not the goal either, because the goal is to

1018
00:42:46,360 --> 00:42:48,360
Speaker 1: enjoy the fruits of our labors at some point in

1019
00:42:48,400 --> 00:42:50,480
Speaker 1: our lives. And so it's not to max out a

1020
00:42:50,560 --> 00:42:53,840
Speaker 1: roth Ira necessarily when we're ninety three. It might be

1021
00:42:53,920 --> 00:42:55,800
Speaker 1: for some people, but for most people it's not. Probably

1022
00:42:55,880 --> 00:42:58,840
Speaker 1: not yeah, and it's it's certainly okay to keep investing

1023
00:42:58,880 --> 00:43:02,800
Speaker 1: in even in your retirement years, but it's not necessary.

1024
00:43:02,960 --> 00:43:04,719
Speaker 1: And I think whether or not you choose to it

1025
00:43:04,840 --> 00:43:08,520
Speaker 1: depends on your specific goals. Right. If like, generational wealth

1026
00:43:08,680 --> 00:43:10,879
Speaker 1: is something that you desire. For instance, if you want

1027
00:43:10,880 --> 00:43:13,000
Speaker 1: to hand down money to your children and you want

1028
00:43:13,040 --> 00:43:15,680
Speaker 1: your children's children to benefit from it, you're probably gonna

1029
00:43:15,680 --> 00:43:18,800
Speaker 1: want to keep secking money away. But if not ceasing

1030
00:43:18,840 --> 00:43:21,759
Speaker 1: contributions to accounts that are specifically designed to help you

1031
00:43:21,840 --> 00:43:25,640
Speaker 1: save for retirement as you're retiring, that's probably a good idea, right,

1032
00:43:25,719 --> 00:43:28,160
Speaker 1: Like you don't need to be putting money into those

1033
00:43:28,160 --> 00:43:31,040
Speaker 1: accounts anymore. I want to say the flip side of this.

1034
00:43:31,280 --> 00:43:33,520
Speaker 1: It doesn't mean I'm not saying that you should cash

1035
00:43:33,560 --> 00:43:36,320
Speaker 1: out all your investments once you reach retirement age, that

1036
00:43:36,360 --> 00:43:39,239
Speaker 1: you shouldn't have investments anymore. No, I've seen the flip

1037
00:43:39,320 --> 00:43:41,479
Speaker 1: side of this coin Matt, where people are actually pretty

1038
00:43:41,480 --> 00:43:44,719
Speaker 1: good savers and investors for many years and then they

1039
00:43:44,760 --> 00:43:47,680
Speaker 1: reach retirement age and they blow their nest egg really quickly.

1040
00:43:47,840 --> 00:43:49,759
Speaker 1: They've worked decades to build up and they think, wait

1041
00:43:49,760 --> 00:43:52,480
Speaker 1: a second, this is money aim for retirement. I'm retired,

1042
00:43:52,960 --> 00:43:56,280
Speaker 1: let me spend it all. And the truth is retirement

1043
00:43:56,360 --> 00:43:58,640
Speaker 1: for most people is more of an extended period of time,

1044
00:43:58,680 --> 00:43:59,480
Speaker 1: and if you use.

1045
00:43:59,520 --> 00:44:01,200
Speaker 2: A little more AU, I think for most folks, like

1046
00:44:01,280 --> 00:44:02,960
Speaker 2: most of it makes me think of like as you're

1047
00:44:03,000 --> 00:44:05,040
Speaker 2: driving down the road or whatever. You're on the highway,

1048
00:44:05,200 --> 00:44:07,439
Speaker 2: the light turns red up ahead, you don't like slam

1049
00:44:07,520 --> 00:44:09,840
Speaker 2: on the brakes and throat into reverse, like you just

1050
00:44:09,960 --> 00:44:11,719
Speaker 2: coast a little bit. And that's what we're talking about here,

1051
00:44:11,760 --> 00:44:14,040
Speaker 2: And I think that's what that's anonymous poster. She's talking

1052
00:44:14,040 --> 00:44:17,359
Speaker 2: about coasting. She's probably not gonna want to be proactively

1053
00:44:17,960 --> 00:44:19,640
Speaker 2: flooring it, you know, with her foot on the gas

1054
00:44:19,719 --> 00:44:22,439
Speaker 2: where she's funding those accounts with the same fervor at least,

1055
00:44:22,840 --> 00:44:25,400
Speaker 2: and it sounds like she is in a great financial position.

1056
00:44:25,480 --> 00:44:28,200
Speaker 2: You know, she's got two solid pensions and you're almost

1057
00:44:28,280 --> 00:44:31,840
Speaker 2: done with all debt there except for the mortgage, and

1058
00:44:32,000 --> 00:44:33,560
Speaker 2: we don't know what you're spending. Looks like that's my

1059
00:44:33,640 --> 00:44:36,000
Speaker 2: only sort of I don't know, that's that's the unknown.

1060
00:44:36,200 --> 00:44:37,880
Speaker 2: But my guess is that you too will likely be

1061
00:44:37,920 --> 00:44:41,360
Speaker 2: able to live off that pension and come alone, potentially

1062
00:44:41,719 --> 00:44:43,799
Speaker 2: saying that it's more than one hundred thousand dollars a year.

1063
00:44:43,920 --> 00:44:47,279
Speaker 2: So that's pretty great, yeah, especially considering that you don't

1064
00:44:47,280 --> 00:44:48,799
Speaker 2: have any additional consumer debt.

1065
00:44:49,080 --> 00:44:51,120
Speaker 1: But card debt's gonna be gone really soon. Yeah.

1066
00:44:51,360 --> 00:44:52,680
Speaker 2: I Mean, the problem though, is that we just don't

1067
00:44:52,719 --> 00:44:54,279
Speaker 2: know her cost of living, right, Like, we don't know

1068
00:44:54,320 --> 00:44:56,200
Speaker 2: if she's living in the Bay Area, we don't know

1069
00:44:56,280 --> 00:44:59,120
Speaker 2: if she's living in Manhattan. Uh, And it all a

1070
00:44:59,120 --> 00:45:01,000
Speaker 2: lot of it comes down to your cost of living,

1071
00:45:01,040 --> 00:45:03,160
Speaker 2: And so I would that's a huge part of the

1072
00:45:03,200 --> 00:45:04,680
Speaker 2: equation that we don't have here, Like we've got a

1073
00:45:04,719 --> 00:45:05,480
Speaker 2: lot of the incoming.

1074
00:45:05,560 --> 00:45:08,400
Speaker 1: But if you're a normal person with only a mortgage,

1075
00:45:08,520 --> 00:45:10,600
Speaker 1: no other defit probably going to be fine entering those

1076
00:45:10,640 --> 00:45:14,279
Speaker 1: retirement years. Nine thousand dollars a month in on top

1077
00:45:14,360 --> 00:45:18,000
Speaker 1: of having the essentially million dollar plus net worth is

1078
00:45:18,080 --> 00:45:20,279
Speaker 1: going to be enough for most people to live really

1079
00:45:20,320 --> 00:45:21,520
Speaker 1: comfortably in retirement, right.

1080
00:45:21,560 --> 00:45:23,480
Speaker 2: But if you are not tracking your expenses. I think

1081
00:45:23,480 --> 00:45:26,160
Speaker 2: this is a good argument though, for tracking your expenses

1082
00:45:26,239 --> 00:45:28,839
Speaker 2: and literally knowing how much you're spending every every single year,

1083
00:45:28,880 --> 00:45:30,800
Speaker 2: because I think that can just illuminate and shine a

1084
00:45:30,880 --> 00:45:34,400
Speaker 2: light on what it takes for you to retire. And

1085
00:45:34,600 --> 00:45:36,840
Speaker 2: there's there are certainly nerdy ways of going about this.

1086
00:45:36,960 --> 00:45:38,879
Speaker 2: That's the kind of path that I like to go down.

1087
00:45:39,440 --> 00:45:42,160
Speaker 2: And since you're the one posting in our Facebook group,

1088
00:45:42,160 --> 00:45:44,400
Speaker 2: I'm assuming you are on the nearer side of things.

1089
00:45:44,480 --> 00:45:46,560
Speaker 2: You like the numbers, but maybe your partner isn't. But

1090
00:45:47,320 --> 00:45:48,520
Speaker 2: we're getting towards the end of the year. In a

1091
00:45:48,520 --> 00:45:50,520
Speaker 2: way I like to think about this is as I'm

1092
00:45:50,560 --> 00:45:52,960
Speaker 2: getting numbers together to present to Kate and for us

1093
00:45:52,960 --> 00:45:57,239
Speaker 2: to have good discussions over Christmas, Like I'll say something like, hey,

1094
00:45:57,880 --> 00:45:59,759
Speaker 2: we can retire an X number of years were we

1095
00:45:59,800 --> 00:46:02,239
Speaker 2: to maintaining the same type of lifestyle that we've lived

1096
00:46:02,239 --> 00:46:04,040
Speaker 2: this past year. So put it in terms like that,

1097
00:46:04,280 --> 00:46:06,160
Speaker 2: where it's like, oh, okay, well I know how I

1098
00:46:06,200 --> 00:46:08,320
Speaker 2: live this past year. We're talking about me, you know,

1099
00:46:09,080 --> 00:46:11,279
Speaker 2: trimming a little bit here, maybe increasing a little bit here.

1100
00:46:11,600 --> 00:46:14,719
Speaker 2: But I think the ability to have these conversations as

1101
00:46:14,800 --> 00:46:17,360
Speaker 2: a couple is highly dependent on your ability to know

1102
00:46:17,640 --> 00:46:20,760
Speaker 2: what it is that you're spending every single year, because otherwise,

1103
00:46:20,760 --> 00:46:22,480
Speaker 2: if you don't know what you're spending, you don't know

1104
00:46:22,560 --> 00:46:24,800
Speaker 2: whether to keep your foot on the gas or to coast,

1105
00:46:25,000 --> 00:46:26,680
Speaker 2: or even to slam on the brakes, right, because you

1106
00:46:27,120 --> 00:46:29,040
Speaker 2: you might even find yourself years down the road of

1107
00:46:29,160 --> 00:46:31,279
Speaker 2: having continued to invest in maybe you didn't even need.

1108
00:46:31,280 --> 00:46:33,560
Speaker 1: Right, Yeah, you might. You're flying blind to a certain extent. Yeah,

1109
00:46:33,960 --> 00:46:36,160
Speaker 1: And I think Matt she mentioned vacations right at the

1110
00:46:36,239 --> 00:46:38,360
Speaker 1: very beginning. That's really important to note too that this

1111
00:46:38,520 --> 00:46:40,839
Speaker 1: is going to be an added expense. Well, how much

1112
00:46:40,880 --> 00:46:42,320
Speaker 1: of an added expense is it going to be? And

1113
00:46:42,400 --> 00:46:44,360
Speaker 1: once the car notes are paid off, is it essentially

1114
00:46:44,440 --> 00:46:47,239
Speaker 1: replacing car notes with vacation money, Because that's a great

1115
00:46:47,239 --> 00:46:48,879
Speaker 1: way to do it, because hey, like you, you want

1116
00:46:48,920 --> 00:46:52,319
Speaker 1: to spend one thousand bucks a month on travel, that's great,

1117
00:46:52,440 --> 00:46:54,920
Speaker 1: you probably can afford to, right, especially as you get

1118
00:46:55,000 --> 00:46:57,399
Speaker 1: rid of any sort of card debt. But make sure

1119
00:46:57,440 --> 00:47:00,359
Speaker 1: you also know what you're adding into your life as

1120
00:47:00,400 --> 00:47:03,399
Speaker 1: you hit retirements, because when you retire at this age, Matt,

1121
00:47:03,440 --> 00:47:05,839
Speaker 1: there's typically for a lot of people they're pretty healthy.

1122
00:47:06,400 --> 00:47:08,440
Speaker 1: There's a lot of people who are healthy fifty nine

1123
00:47:08,520 --> 00:47:11,080
Speaker 1: and sixty year olds. And so when you're at that point,

1124
00:47:11,239 --> 00:47:13,080
Speaker 1: like you probably still want to spend money in a

1125
00:47:13,120 --> 00:47:15,560
Speaker 1: way you might not want to win you're eighty, So

1126
00:47:15,920 --> 00:47:19,080
Speaker 1: make sure you have a plan for potentially increased spending

1127
00:47:19,120 --> 00:47:21,080
Speaker 1: over the next five or ten years as well. It's

1128
00:47:21,080 --> 00:47:23,040
Speaker 1: also important, and I want to stress this to not

1129
00:47:23,120 --> 00:47:25,880
Speaker 1: wait too long to enjoy the money, or to not

1130
00:47:25,960 --> 00:47:29,040
Speaker 1: wait too long. Yeah, and like invest more for extra

1131
00:47:29,120 --> 00:47:31,640
Speaker 1: security when you didn't necessarily need to and I haven't

1132
00:47:31,640 --> 00:47:33,680
Speaker 1: really talked about this much on the show, but my mom,

1133
00:47:33,840 --> 00:47:36,799
Speaker 1: she was diagnosed with a really crappy type of skin

1134
00:47:36,880 --> 00:47:40,239
Speaker 1: cancer recently, and we don't really know how much longer

1135
00:47:40,360 --> 00:47:42,080
Speaker 1: we have with her. We're hopeful, but we're also just

1136
00:47:42,160 --> 00:47:45,200
Speaker 1: not assured of anything in this life, right. We don't

1137
00:47:45,239 --> 00:47:46,520
Speaker 1: know that we're going to have decades to come like

1138
00:47:46,600 --> 00:47:49,160
Speaker 1: we thought we did. And so I'm glad Matt that

1139
00:47:49,520 --> 00:47:51,600
Speaker 1: our family that would move closer to them when they did,

1140
00:47:51,760 --> 00:47:54,480
Speaker 1: when we did, I'm glad that they retired when they did.

1141
00:47:54,560 --> 00:47:56,279
Speaker 1: That was a topic of discussion, like, well we could

1142
00:47:56,360 --> 00:47:59,000
Speaker 1: keep working and secure a greater retirement for ourselves. Does

1143
00:47:59,080 --> 00:48:00,800
Speaker 1: that make sense? And we had these discussions and that

1144
00:48:01,080 --> 00:48:02,800
Speaker 1: entered into it. I was like, I don't think it

1145
00:48:02,840 --> 00:48:04,600
Speaker 1: does make sense for you to keep working, Like it's

1146
00:48:04,640 --> 00:48:06,359
Speaker 1: time for you to enjoy the fruits of your labor,

1147
00:48:06,400 --> 00:48:09,520
Speaker 1: and I think you've planned sufficiently well. Make sure you're

1148
00:48:09,560 --> 00:48:11,360
Speaker 1: not over indexing to that. Because this was before my

1149
00:48:11,440 --> 00:48:14,319
Speaker 1: mom's diagnosis and that seemed like the right course of action,

1150
00:48:14,440 --> 00:48:17,719
Speaker 1: and now post diagnosis, it makes even more sense. Oh yeah, right, yeah,

1151
00:48:17,920 --> 00:48:21,279
Speaker 1: And I just wouldn't trade these past two years for them.

1152
00:48:21,360 --> 00:48:23,879
Speaker 1: Having a little more financial security. I know they feel

1153
00:48:23,880 --> 00:48:26,719
Speaker 1: the same, so I guess I would just encourage this

1154
00:48:26,800 --> 00:48:29,560
Speaker 1: listener to save, to invest, to be prepared, but also

1155
00:48:29,719 --> 00:48:32,160
Speaker 1: know that it's possible to overdo it and to miss

1156
00:48:32,200 --> 00:48:35,000
Speaker 1: out on some beautiful times in those years when your

1157
00:48:35,040 --> 00:48:38,479
Speaker 1: health is still mostly intact. And again, you're retiring incredibly early,

1158
00:48:38,560 --> 00:48:41,560
Speaker 1: which is awesome. And if we're right about the pensions

1159
00:48:41,640 --> 00:48:44,120
Speaker 1: essentially being able to fund your lifestyle moving forward, and

1160
00:48:44,239 --> 00:48:47,399
Speaker 1: your investments are just gravy on top, it's totally okay

1161
00:48:47,480 --> 00:48:50,800
Speaker 1: to deprioritize investing and maybe to even cut it out altogether.

1162
00:48:51,440 --> 00:48:54,520
Speaker 1: But more than anything, congrats on setting yourselves up for

1163
00:48:54,640 --> 00:48:58,000
Speaker 1: a well funded early retirement. I have a feeling this

1164
00:48:58,200 --> 00:49:01,719
Speaker 1: is going to be smooth sailing and that maybe there's

1165
00:49:01,840 --> 00:49:03,919
Speaker 1: cause to worry less than this listener is wearring.

1166
00:49:04,400 --> 00:49:07,560
Speaker 2: Well said, and I totally agree. All right, man, let's

1167
00:49:07,600 --> 00:49:09,840
Speaker 2: get back to the beer that you and I enjoyed

1168
00:49:10,000 --> 00:49:13,440
Speaker 2: during this episode, which was a Pecan Pie Porter by

1169
00:49:13,520 --> 00:49:16,080
Speaker 2: clown Shoes. This is a porter with bourbon vanilla pecan

1170
00:49:16,160 --> 00:49:19,720
Speaker 2: pie flavor. Don't like the flavor is included in the description.

1171
00:49:19,880 --> 00:49:22,000
Speaker 2: It's like literally a part of my review here and

1172
00:49:22,560 --> 00:49:25,320
Speaker 2: natural flavors was the rest of the description there. What

1173
00:49:25,600 --> 00:49:27,359
Speaker 2: what'd you think? So I can taste this is out

1174
00:49:27,400 --> 00:49:30,799
Speaker 2: of by the way, Boston, Massachusetts and Windsor, Vermont, So.

1175
00:49:30,920 --> 00:49:32,960
Speaker 1: I guess to get two locations, I guess they do this.

1176
00:49:33,080 --> 00:49:36,040
Speaker 1: One definitely tasted the vanilla, tasted the pecan, but it

1177
00:49:36,160 --> 00:49:39,040
Speaker 1: felt a little artificial, almost like it was drops something

1178
00:49:39,120 --> 00:49:40,359
Speaker 1: in there and not the real of them.

1179
00:49:40,480 --> 00:49:42,440
Speaker 2: So well, I think that's exactly what they did right

1180
00:49:42,480 --> 00:49:44,719
Speaker 2: because of the like it tasted like how you would

1181
00:49:44,800 --> 00:49:48,040
Speaker 2: expect a bourbon vanilla pecon pie to taste like, as

1182
00:49:48,080 --> 00:49:50,319
Speaker 2: opposed to what it actually tastes like. And that's the thing.

1183
00:49:50,360 --> 00:49:53,360
Speaker 2: They're not going to, like drop a bourbon vanilla pecon

1184
00:49:53,440 --> 00:49:56,920
Speaker 2: pie into the beer making process, So it's it's got

1185
00:49:57,000 --> 00:50:00,840
Speaker 2: to be something that sort of has the essence of whatever.

1186
00:50:01,080 --> 00:50:03,000
Speaker 1: But there's a lot of breweries that put in the

1187
00:50:03,080 --> 00:50:06,920
Speaker 1: adjuncts and they go through the extra effort to secure

1188
00:50:06,960 --> 00:50:10,719
Speaker 1: the real ingredients instead of like some sort of artificial flavoring.

1189
00:50:11,040 --> 00:50:13,200
Speaker 1: And I think that you can tell on this one

1190
00:50:13,280 --> 00:50:16,200
Speaker 1: even it's solid, but like for me, this just doesn't

1191
00:50:16,239 --> 00:50:17,200
Speaker 1: hit the spot the way I want it.

1192
00:50:17,280 --> 00:50:19,000
Speaker 2: It's fine, but from the first sip, you can kind

1193
00:50:19,000 --> 00:50:22,040
Speaker 2: of tell that, like, oh oh, this tastes like flavoring

1194
00:50:22,080 --> 00:50:24,920
Speaker 2: that came straight off the New Jersey Turnpike where they

1195
00:50:25,120 --> 00:50:28,279
Speaker 2: fabricate you know, like literally the smell and flavor for

1196
00:50:28,400 --> 00:50:29,200
Speaker 2: McDonald's French fries.

1197
00:50:29,320 --> 00:50:29,480
Speaker 3: Yeah.

1198
00:50:30,280 --> 00:50:32,160
Speaker 2: I hate that it sounds like we're bashing this brewery

1199
00:50:32,200 --> 00:50:34,840
Speaker 2: because we want to be supporters of all craft beries

1200
00:50:34,880 --> 00:50:36,520
Speaker 2: out there. And I'm pretty sure we enjoyed the heck

1201
00:50:36,600 --> 00:50:39,600
Speaker 2: out of whatever the last beer we enjoyed by clown Shoes.

1202
00:50:39,800 --> 00:50:41,560
Speaker 2: But I'm with you, this one didn't really hit the

1203
00:50:41,640 --> 00:50:42,399
Speaker 2: mark for me. Yeah.

1204
00:50:42,800 --> 00:50:45,040
Speaker 1: Well, they can't all hit the mark, and it makes

1205
00:50:45,080 --> 00:50:47,040
Speaker 1: me want to get a real pecan pie in my

1206
00:50:47,120 --> 00:50:49,560
Speaker 1: belly this holiday season. Whicheah, I'm sure I'll do so.

1207
00:50:49,840 --> 00:50:51,759
Speaker 1: All right, that's going to do it for this episode. Again.

1208
00:50:51,800 --> 00:50:53,520
Speaker 1: If you have a question for Matt and I we'd

1209
00:50:53,560 --> 00:50:55,200
Speaker 1: love to hear it. Just go to how to money

1210
00:50:55,200 --> 00:50:58,200
Speaker 1: dot com slash ask and you'll see the simple directions

1211
00:50:58,520 --> 00:51:01,040
Speaker 1: for sending your question our way. Hopefully we can take

1212
00:51:01,080 --> 00:51:03,800
Speaker 1: it on the show next week. Matt's going to do

1213
00:51:03,880 --> 00:51:06,600
Speaker 1: it for this one until next time. Best Friends Out,

1214
00:51:06,800 --> 00:51:20,560
Speaker 1: Best Friends Out by