1 00:00:00,080 --> 00:00:02,560 Speaker 1: Welcome to How the Money. I'm Joel, I'm Matt, and 2 00:00:02,600 --> 00:00:25,320 Speaker 1: today we're answering your listener questions. That's right, buddy, Today 3 00:00:25,440 --> 00:00:27,880 Speaker 1: is an ask How the Money episode. Every other Monday, 4 00:00:27,920 --> 00:00:30,600 Speaker 1: we take listener questions here on the show. Listeners sending 5 00:00:30,600 --> 00:00:33,199 Speaker 1: those voice memos. We love hearing your voice and we 6 00:00:33,280 --> 00:00:36,680 Speaker 1: love sharing your voice with our other listeners because we 7 00:00:36,720 --> 00:00:38,880 Speaker 1: want to answer your questions. We've got five great ones 8 00:00:38,880 --> 00:00:42,200 Speaker 1: of this episode, including an investing question from a teenager. 9 00:00:42,440 --> 00:00:45,000 Speaker 1: We've got a listener who is wanting to switch banks, 10 00:00:45,000 --> 00:00:47,720 Speaker 1: but she wants to know what she should know. She 11 00:00:47,760 --> 00:00:49,440 Speaker 1: wants to know what she should consider before, how do 12 00:00:49,479 --> 00:00:51,600 Speaker 1: I do it the right way? And we've got someone 13 00:00:51,640 --> 00:00:55,280 Speaker 1: who has some self employed life considerations to keep in 14 00:00:55,360 --> 00:00:57,640 Speaker 1: mind before she makes a switch. We're gonna answer those 15 00:00:57,720 --> 00:01:00,720 Speaker 1: questions plus a couple others during this episode. It sounds good. 16 00:01:00,760 --> 00:01:03,080 Speaker 1: Before we get to that, we have, like you said, 17 00:01:03,120 --> 00:01:04,520 Speaker 1: five good questions to get to I got a good 18 00:01:04,560 --> 00:01:06,400 Speaker 1: frugal or cheap for me, Well, not a frugal cheap. 19 00:01:06,400 --> 00:01:08,280 Speaker 1: I just want to quickly mention and a reminder to 20 00:01:08,319 --> 00:01:10,600 Speaker 1: other people. This is something I just did myself and 21 00:01:10,640 --> 00:01:12,200 Speaker 1: now I'm like I want to share this with our 22 00:01:12,200 --> 00:01:14,399 Speaker 1: listeners because this is something they can do that'll be good. 23 00:01:15,440 --> 00:01:18,160 Speaker 1: It's it's not gonna blow your socks off. But I 24 00:01:18,200 --> 00:01:23,760 Speaker 1: did order a Nest thermostat, not on Amazon, but from 25 00:01:23,760 --> 00:01:26,760 Speaker 1: our lecture company, even that Georgia Power, because here's the 26 00:01:26,760 --> 00:01:30,560 Speaker 1: deal on their website. You get a straight up discount 27 00:01:30,840 --> 00:01:34,840 Speaker 1: for getting the thermostat fifty to seventy five because I 28 00:01:34,840 --> 00:01:40,040 Speaker 1: get them from Georgia Power. Uh, if you do, maybe 29 00:01:40,120 --> 00:01:41,760 Speaker 1: maybe it's seventy five off of like some of the 30 00:01:42,440 --> 00:01:45,640 Speaker 1: some of those square thermostats. I guess they have other 31 00:01:45,680 --> 00:01:47,440 Speaker 1: things they sell now in their online so yeah, yeah, 32 00:01:47,440 --> 00:01:49,720 Speaker 1: they've got some other ones on there as well that 33 00:01:49,560 --> 00:01:52,000 Speaker 1: you that you get rebates on. So it doesn't surprise 34 00:01:52,040 --> 00:01:55,320 Speaker 1: me that maybe the less popular thermostats are having to 35 00:01:55,360 --> 00:01:58,480 Speaker 1: offer more of a discount, because those Nest thermostats are awesome. 36 00:01:58,520 --> 00:02:01,280 Speaker 1: We've got two of them. We got one upstairs level, 37 00:02:01,400 --> 00:02:04,560 Speaker 1: Yes exactly. I love the round uh look to them 38 00:02:04,560 --> 00:02:06,600 Speaker 1: because they look like the old school thermost like the 39 00:02:06,600 --> 00:02:09,440 Speaker 1: old honeywell where you like move the dial, you know 40 00:02:09,480 --> 00:02:12,240 Speaker 1: I'm talking about. It's like a like an old watch face. 41 00:02:12,639 --> 00:02:14,600 Speaker 1: I like that look and not as well not only 42 00:02:14,600 --> 00:02:17,880 Speaker 1: are they attractive, but having a newer thermostat can't save 43 00:02:17,880 --> 00:02:20,800 Speaker 1: you money, especially one like and Nest, because of the 44 00:02:20,840 --> 00:02:24,480 Speaker 1: way it kind of learns your habits and will it'll 45 00:02:24,600 --> 00:02:28,000 Speaker 1: like kick on the heat or the A C accordingly. 46 00:02:28,360 --> 00:02:31,000 Speaker 1: And so yeah, I'm excited to install this one and 47 00:02:31,040 --> 00:02:33,840 Speaker 1: to get a half price, and not only to get 48 00:02:33,840 --> 00:02:35,720 Speaker 1: a half price, but to know that having this new 49 00:02:35,880 --> 00:02:38,920 Speaker 1: thermostat is in all likelihood going to cut down on 50 00:02:39,240 --> 00:02:42,000 Speaker 1: my on my electricity bills. So it's one of those 51 00:02:42,040 --> 00:02:44,600 Speaker 1: things where I think it's a frugal move, especially if 52 00:02:44,600 --> 00:02:47,120 Speaker 1: you're getting that thermostat frugal or cheat. This is just 53 00:02:47,160 --> 00:02:49,679 Speaker 1: like I bought this thing and it is going to 54 00:02:49,760 --> 00:02:52,079 Speaker 1: save you money. Well, And I wanted to mention one 55 00:02:52,120 --> 00:02:54,720 Speaker 1: other thing is that on Georgia Power's website there are 56 00:02:54,760 --> 00:02:57,359 Speaker 1: other discounts that can be had on other things you 57 00:02:57,400 --> 00:02:59,320 Speaker 1: might do to your home, other incentives that they've got 58 00:02:59,320 --> 00:03:01,280 Speaker 1: there for you. Like back in the day when I 59 00:03:01,320 --> 00:03:03,480 Speaker 1: put new insulation in the attic, and that was a 60 00:03:03,560 --> 00:03:05,520 Speaker 1: d i y move that my buddy Jay and I 61 00:03:05,560 --> 00:03:07,920 Speaker 1: did together. He kindly did it free of charge, and 62 00:03:07,960 --> 00:03:12,560 Speaker 1: then Georgia Power, I believe fifty of the amount of 63 00:03:12,560 --> 00:03:16,359 Speaker 1: money I spent on that project, they covered it and 64 00:03:16,480 --> 00:03:17,919 Speaker 1: uh and so yeah, those are the kind of things 65 00:03:17,960 --> 00:03:21,720 Speaker 1: where your your home is becoming more energy efficient, you're 66 00:03:21,720 --> 00:03:23,560 Speaker 1: going to lower your bills, and at the same time 67 00:03:23,720 --> 00:03:26,000 Speaker 1: you might get your power provider to pay for a 68 00:03:26,080 --> 00:03:29,000 Speaker 1: portion of that upgrade. Definitely. Yeah, so look into your 69 00:03:29,160 --> 00:03:31,800 Speaker 1: local power provider and see if there are some different 70 00:03:31,800 --> 00:03:34,079 Speaker 1: incentives there. I know one of the rebates that they 71 00:03:34,080 --> 00:03:36,240 Speaker 1: offered for a while, I think they actually got rid 72 00:03:36,280 --> 00:03:39,120 Speaker 1: of it, but they would take any working fridge off 73 00:03:39,120 --> 00:03:41,320 Speaker 1: your hands for like thirty forty bucks. Yeah, that's sort 74 00:03:41,320 --> 00:03:42,600 Speaker 1: of things. So basically, if you knew you had a 75 00:03:42,600 --> 00:03:45,440 Speaker 1: fridge that nobody is gonna want to buy because it 76 00:03:45,560 --> 00:03:48,800 Speaker 1: was either so rusted or dens it just busted up, 77 00:03:49,080 --> 00:03:53,400 Speaker 1: which oftentimes happens with rental properties, sometimes they will come 78 00:03:53,480 --> 00:03:55,400 Speaker 1: and say, hey, like, no matter what, you're gonna get 79 00:03:55,400 --> 00:03:57,720 Speaker 1: thirty or forty bucks for it, which was always really nice. 80 00:03:57,880 --> 00:04:00,000 Speaker 1: But I wanted to mention too because the nest thermis, 81 00:04:00,000 --> 00:04:01,560 Speaker 1: that's one of the like you you're talking about how 82 00:04:01,600 --> 00:04:03,640 Speaker 1: it learns, you know, it's like at the learning aspect 83 00:04:03,680 --> 00:04:06,560 Speaker 1: of it. At first, I was annoyed by that because 84 00:04:06,680 --> 00:04:08,960 Speaker 1: I have a schedule programmed in I pull up the 85 00:04:08,960 --> 00:04:11,080 Speaker 1: app on my phone, you can easily copy days, paste, 86 00:04:11,280 --> 00:04:13,400 Speaker 1: you know, paste the same schedule to multiple days, that 87 00:04:13,480 --> 00:04:15,760 Speaker 1: whole thing, and like once or twice a year, it 88 00:04:15,840 --> 00:04:18,159 Speaker 1: kicks back into like the learning phase and it's and 89 00:04:18,160 --> 00:04:20,839 Speaker 1: it starts making tweaks. Uh. And at first, like I mentioned, 90 00:04:20,839 --> 00:04:23,080 Speaker 1: I was totally annoyed, except for the fact that it's 91 00:04:23,160 --> 00:04:25,640 Speaker 1: it pushes you, like better than you know yourself. It 92 00:04:25,760 --> 00:04:29,520 Speaker 1: encourages you to save energy, because that's the whole point 93 00:04:29,560 --> 00:04:31,840 Speaker 1: behind the nest. Their mistance is so that you use 94 00:04:31,920 --> 00:04:34,120 Speaker 1: less energy. And initially I was about to pull up 95 00:04:34,120 --> 00:04:35,680 Speaker 1: the app and I was gonna erase all of the 96 00:04:35,720 --> 00:04:38,120 Speaker 1: changes that it had made. But then I thought, wait 97 00:04:38,160 --> 00:04:40,040 Speaker 1: a minute. You know, like we've been keeping it at 98 00:04:40,080 --> 00:04:43,839 Speaker 1: sixty four at night, Uh, maybe we can handle sixty 99 00:04:43,839 --> 00:04:45,839 Speaker 1: three degrees. The girls are you know, they're nice and cozy. 100 00:04:46,000 --> 00:04:48,760 Speaker 1: They're nice and warm under their blankets. And so that 101 00:04:48,839 --> 00:04:50,960 Speaker 1: was actually a change that I allowed. And I don't 102 00:04:51,000 --> 00:04:52,880 Speaker 1: know how much that one degree is saving me, but 103 00:04:52,960 --> 00:04:55,839 Speaker 1: it's saving me something. Yeah. Well, so yeah, like you said, 104 00:04:55,880 --> 00:04:58,240 Speaker 1: it knows me better than I know myself. Yeah, I'm 105 00:04:58,240 --> 00:05:00,840 Speaker 1: excited to put it in and kind of see like 106 00:05:00,880 --> 00:05:03,240 Speaker 1: what sort of changes it makes, because, like you, I 107 00:05:03,279 --> 00:05:06,400 Speaker 1: like to think of myself as maybe like um overly 108 00:05:06,480 --> 00:05:09,600 Speaker 1: into the thermostat settings, and so maybe this will take 109 00:05:09,600 --> 00:05:10,839 Speaker 1: my mind off and I'll start doing some of that 110 00:05:10,839 --> 00:05:13,880 Speaker 1: stuff for me. It's like a little personal trainer for you. Yes, exactly. 111 00:05:13,920 --> 00:05:15,600 Speaker 1: But all right, Matt, let's mention the beer we're having 112 00:05:15,680 --> 00:05:17,920 Speaker 1: on this episode. This one is called Really Green Streets. 113 00:05:18,000 --> 00:05:20,640 Speaker 1: It's by Trillium and Other Half. Literally, I can't think 114 00:05:20,640 --> 00:05:22,880 Speaker 1: of two better breweries to make a collaboration be our 115 00:05:23,080 --> 00:05:26,160 Speaker 1: favorite breweries have teamed together. And yeah, this one was 116 00:05:26,200 --> 00:05:28,760 Speaker 1: sent to us by Ali. I'm actually a little sad 117 00:05:28,800 --> 00:05:30,520 Speaker 1: this is the last of the trillion beers that she 118 00:05:30,600 --> 00:05:32,680 Speaker 1: sent in our away. So Ali, thank you again for 119 00:05:32,720 --> 00:05:35,000 Speaker 1: the delicious beers and we'll look forward to sharing our 120 00:05:35,040 --> 00:05:37,000 Speaker 1: thoughts on this one at the end of the episode, 121 00:05:37,040 --> 00:05:39,720 Speaker 1: no doubt. All right, let's get onto the listener questions. 122 00:05:39,839 --> 00:05:40,920 Speaker 1: And if you have a question and you want to 123 00:05:40,920 --> 00:05:42,640 Speaker 1: submit one to Matt and I to take on an 124 00:05:42,720 --> 00:05:45,160 Speaker 1: upcoming episode, we'll just go to how to money dot 125 00:05:45,160 --> 00:05:48,440 Speaker 1: com slash ask and you can see the simple instructions 126 00:05:48,480 --> 00:05:50,800 Speaker 1: for how to submit a voice memo of your question 127 00:05:51,120 --> 00:05:53,440 Speaker 1: and hopefully we can take it on the next ask 128 00:05:53,600 --> 00:05:57,640 Speaker 1: htm episode. But this first question does come from a 129 00:05:57,680 --> 00:06:01,920 Speaker 1: teenager in California, Himen and Joel. My name is Arjan Mohen. 130 00:06:02,040 --> 00:06:04,599 Speaker 1: I'm from Tracy, California, a small city, was super small. 131 00:06:04,720 --> 00:06:08,479 Speaker 1: It's basically a bad translation. I'm a teenager and I 132 00:06:08,520 --> 00:06:12,360 Speaker 1: am not financially independent. So here's my question. I am 133 00:06:12,360 --> 00:06:15,040 Speaker 1: wondering how much I should contribute to my roth I array. 134 00:06:15,800 --> 00:06:18,400 Speaker 1: I just recently scored a part time job in the 135 00:06:18,400 --> 00:06:21,800 Speaker 1: Mathemaesium Tracy. I don't know if it's my favorite place 136 00:06:21,800 --> 00:06:24,200 Speaker 1: to work, but it's definitely a place to work and 137 00:06:24,320 --> 00:06:26,520 Speaker 1: I will be getting a pretty good chunk of money, 138 00:06:26,600 --> 00:06:29,839 Speaker 1: not enough to hit the cap for my irray. So 139 00:06:29,960 --> 00:06:32,720 Speaker 1: here's where my question comes in. UM, let's say I 140 00:06:32,760 --> 00:06:35,960 Speaker 1: am making five to five point five grand a year 141 00:06:36,440 --> 00:06:40,599 Speaker 1: and I do plan putting of it into my IRA. 142 00:06:41,080 --> 00:06:43,280 Speaker 1: Is that a good idea? Just to keep in mind, 143 00:06:43,320 --> 00:06:46,000 Speaker 1: I am still a teenager. I still have teenage needs 144 00:06:46,240 --> 00:06:49,320 Speaker 1: like going outside and eating um fashion stuff like that, 145 00:06:49,360 --> 00:06:52,240 Speaker 1: you know, UM stuff that I am into and I 146 00:06:52,279 --> 00:06:55,560 Speaker 1: think I would enjoy having. Uh, so I don't know 147 00:06:55,680 --> 00:06:58,760 Speaker 1: where and to what level I should contribute to my 148 00:06:58,880 --> 00:07:02,080 Speaker 1: roth ray. My mom recommends that I contribute all of 149 00:07:02,120 --> 00:07:05,040 Speaker 1: it to my I ra A, and I am not 150 00:07:05,120 --> 00:07:07,600 Speaker 1: really sure if that's the best association for me, if 151 00:07:07,640 --> 00:07:10,560 Speaker 1: that will make me happy, even since I am going 152 00:07:10,600 --> 00:07:12,400 Speaker 1: to grind through this job. It's definitely gonna be a 153 00:07:12,440 --> 00:07:15,360 Speaker 1: hard job. So yeah, hoping for your guys opinion on this. 154 00:07:15,600 --> 00:07:17,040 Speaker 1: Thank you so much forking the time to answer your 155 00:07:17,080 --> 00:07:20,320 Speaker 1: question by Joel Man. We've got a small town young 156 00:07:20,440 --> 00:07:22,720 Speaker 1: dude here. He was already focused on growing his money, 157 00:07:22,760 --> 00:07:25,480 Speaker 1: building wealth. I love that we've got this question specifically 158 00:07:25,480 --> 00:07:28,600 Speaker 1: from a teenager and argent congrats too and scoring that job. 159 00:07:28,680 --> 00:07:31,360 Speaker 1: I'm happy for you. But the reason that we are 160 00:07:31,480 --> 00:07:33,880 Speaker 1: pumped that you are asking this question is because essentially, 161 00:07:33,920 --> 00:07:37,040 Speaker 1: like this is a timeless question that you will have 162 00:07:37,160 --> 00:07:39,760 Speaker 1: to continually revisit and wrestle with for the rest of 163 00:07:39,760 --> 00:07:42,320 Speaker 1: your life. Would like settle it one and done here 164 00:07:42,360 --> 00:07:44,720 Speaker 1: Like these are the kind of like this is what 165 00:07:44,960 --> 00:07:47,080 Speaker 1: I say, more invest more or do I live life now? 166 00:07:47,160 --> 00:07:49,840 Speaker 1: It's yes, yeah, no. Finding that balance like that is 167 00:07:49,880 --> 00:07:52,240 Speaker 1: literally at the core of what we talked about here 168 00:07:52,240 --> 00:07:54,400 Speaker 1: on this show, Like all the details, all the specifics, 169 00:07:54,400 --> 00:07:56,760 Speaker 1: all the mechanics, those are just like kind of small details, 170 00:07:57,040 --> 00:07:58,760 Speaker 1: But truly what is at the core is finding this 171 00:07:58,880 --> 00:08:02,239 Speaker 1: balance between living life now living life into the future. 172 00:08:02,560 --> 00:08:04,760 Speaker 1: And so the fact that you're even asking this question already, 173 00:08:04,800 --> 00:08:06,720 Speaker 1: this gives you a huge leg up on your peers, 174 00:08:06,840 --> 00:08:10,120 Speaker 1: and you know your ability to delay that gratification is 175 00:08:10,120 --> 00:08:12,960 Speaker 1: only gonna grow stronger the more that you flex that muscle. 176 00:08:13,360 --> 00:08:15,760 Speaker 1: I agree, Yeah, I think it's I'm glad that Argent 177 00:08:15,920 --> 00:08:18,560 Speaker 1: is asking this question, like do I invest all of 178 00:08:18,600 --> 00:08:21,920 Speaker 1: my money right now and uh forego some of those 179 00:08:21,920 --> 00:08:24,280 Speaker 1: things that I actually want to do right now? And 180 00:08:24,440 --> 00:08:26,440 Speaker 1: that's a deep question. We'll talk about that, but but 181 00:08:26,560 --> 00:08:29,840 Speaker 1: let's talk about compound interest first origin because yeah, you 182 00:08:29,840 --> 00:08:31,760 Speaker 1: asked if it's a good idea to put every single 183 00:08:31,800 --> 00:08:35,199 Speaker 1: dollar that you're making directly into a roth ira, And 184 00:08:35,800 --> 00:08:37,400 Speaker 1: let's talk about the money side of it. From a 185 00:08:37,400 --> 00:08:41,000 Speaker 1: purely financial perspective. Yes, this is a fantastic move, especially 186 00:08:41,000 --> 00:08:44,200 Speaker 1: given your age. Like every dollar you invest now is 187 00:08:44,200 --> 00:08:45,840 Speaker 1: going to grow in a big way, and that's because 188 00:08:46,000 --> 00:08:49,960 Speaker 1: of what's known as compounding returns. This phenomena is when 189 00:08:50,360 --> 00:08:54,199 Speaker 1: the money that you earn via those investments, begins to 190 00:08:54,280 --> 00:08:57,280 Speaker 1: earn money itself, and over the time, it's kind of 191 00:08:57,280 --> 00:09:00,679 Speaker 1: like a snowball going downhill, right, and it's just gather steam. 192 00:09:00,720 --> 00:09:03,640 Speaker 1: It gets bigger, and it started small, maybe at the 193 00:09:03,760 --> 00:09:06,000 Speaker 1: very top of the hill, but once it's at the bottom, 194 00:09:06,040 --> 00:09:09,760 Speaker 1: it's this enormous thing that's like immovable. And yeah, it's 195 00:09:09,760 --> 00:09:12,040 Speaker 1: why Albert Einstein called it the eighth Wonder of the world. 196 00:09:12,200 --> 00:09:15,240 Speaker 1: And he said, he who understands it earns it, he 197 00:09:15,280 --> 00:09:17,920 Speaker 1: who doesn't pays for it. And so, yeah, if you've 198 00:09:17,960 --> 00:09:20,080 Speaker 1: been listening to this podcast and you're looking to invest 199 00:09:20,200 --> 00:09:22,800 Speaker 1: some of your hard earned dollars in a roth Ira, 200 00:09:23,160 --> 00:09:25,480 Speaker 1: I'm sure you know this already, but let's bust out 201 00:09:25,559 --> 00:09:27,560 Speaker 1: some of the numbers for you. Matt. You're our resident 202 00:09:27,760 --> 00:09:29,920 Speaker 1: numbers guy. You're do like crunch in the numbers, like 203 00:09:29,960 --> 00:09:30,920 Speaker 1: to go with the gut, You like to go with 204 00:09:30,960 --> 00:09:32,680 Speaker 1: the numbers. So yeah, yeah, why don't you me that 205 00:09:32,679 --> 00:09:35,440 Speaker 1: empirical data. And first of all, Argent, I'll say, yes, 206 00:09:35,480 --> 00:09:38,120 Speaker 1: your mom is right, So this is the wisest move 207 00:09:38,200 --> 00:09:40,880 Speaker 1: for you financially speaking. But there's also a lot of 208 00:09:40,880 --> 00:09:43,240 Speaker 1: other things that we're gonna discuss here. But but yeah, 209 00:09:43,280 --> 00:09:45,120 Speaker 1: let's talk about the numbers. Let's say that there is 210 00:09:45,120 --> 00:09:47,400 Speaker 1: a sixteen year old who starts some sixteen year old 211 00:09:47,400 --> 00:09:49,760 Speaker 1: in California. Yeah, perhaps, although he didn't say his age, 212 00:09:49,760 --> 00:09:51,640 Speaker 1: did he Yeah? I think, well no, maybe he didn't, 213 00:09:51,679 --> 00:09:53,720 Speaker 1: but he's a teenager. So but he's like fifteen or sixteen. 214 00:09:54,200 --> 00:09:55,920 Speaker 1: But let's say there's a sixen year old who starts 215 00:09:55,920 --> 00:09:58,640 Speaker 1: to max out their retirement account now, and they do 216 00:09:58,679 --> 00:10:00,560 Speaker 1: that for the next ten years until of they are 217 00:10:00,600 --> 00:10:03,560 Speaker 1: twenty six. So that means that you would have contributed 218 00:10:03,640 --> 00:10:06,439 Speaker 1: a total of sixty thousand dollars of your own dollars 219 00:10:06,760 --> 00:10:09,600 Speaker 1: to retirement. Congrats, because that is an entire decade of 220 00:10:09,640 --> 00:10:12,240 Speaker 1: really hard work. And then, assuming that you are earning 221 00:10:12,360 --> 00:10:15,520 Speaker 1: just let's say a conservative seven percent in that account, 222 00:10:16,000 --> 00:10:19,480 Speaker 1: you'd see that total balance almost hit eighty three thousand dollars. 223 00:10:19,520 --> 00:10:22,240 Speaker 1: So that's a gain of about twenty three thousand dollars, 224 00:10:22,240 --> 00:10:24,800 Speaker 1: not too shabby. But now at the age of twenty six, 225 00:10:24,880 --> 00:10:28,160 Speaker 1: let's let's pretend that you stop contributing to your wrath completely, 226 00:10:28,559 --> 00:10:30,880 Speaker 1: but then you continue to let that eighty three thousand 227 00:10:30,920 --> 00:10:34,280 Speaker 1: dollars grow for the next forty years. By the time 228 00:10:34,400 --> 00:10:37,040 Speaker 1: that you are sixty six years old, that total balance 229 00:10:37,080 --> 00:10:39,960 Speaker 1: will have exploded and will now be worth one point 230 00:10:40,080 --> 00:10:43,280 Speaker 1: two million dollars, all because you decided to max out 231 00:10:43,280 --> 00:10:46,160 Speaker 1: your rath Ira for your first ten years of your 232 00:10:46,200 --> 00:10:47,800 Speaker 1: life or none of your life, of your career, I 233 00:10:47,800 --> 00:10:49,880 Speaker 1: guess your investing career. Yeah, and so that is a 234 00:10:49,960 --> 00:10:53,440 Speaker 1: gain of over one point one million dollars provided solely 235 00:10:53,720 --> 00:10:56,560 Speaker 1: from compounding returns. And you put in sixty g s 236 00:10:56,600 --> 00:10:58,480 Speaker 1: and now you've got one point two million. That's like, 237 00:10:58,559 --> 00:11:00,959 Speaker 1: that's impressive, it's incredible. I'm in the fact too. I mean, 238 00:11:01,080 --> 00:11:03,920 Speaker 1: the the initial sixty that was based on your hard work, 239 00:11:04,040 --> 00:11:06,160 Speaker 1: but then that additional one point one million was work 240 00:11:06,280 --> 00:11:08,560 Speaker 1: that your money was doing. Like that was the ability 241 00:11:08,600 --> 00:11:10,880 Speaker 1: of your money to work harder than you would have 242 00:11:10,920 --> 00:11:13,320 Speaker 1: been able to. Okay, so, Matt, I'm glad you share 243 00:11:13,320 --> 00:11:16,080 Speaker 1: the numbers. They're astounding. Like that they do, that's what 244 00:11:16,080 --> 00:11:19,040 Speaker 1: they're meant to do, and hopefully that just hearing those 245 00:11:19,120 --> 00:11:23,160 Speaker 1: numbers is encouraging for anybody who's young to be investing 246 00:11:23,160 --> 00:11:24,600 Speaker 1: more of their dollars. And we even kept it at 247 00:11:24,600 --> 00:11:27,120 Speaker 1: the conservative seven percent. I was tempted to ratchet it 248 00:11:27,200 --> 00:11:29,160 Speaker 1: up to ten or even twelve, because that's what the 249 00:11:29,240 --> 00:11:31,439 Speaker 1: SMP five has seen over the past forty years. And 250 00:11:31,480 --> 00:11:33,840 Speaker 1: it seem so Yeah, I think if you you could 251 00:11:33,840 --> 00:11:36,000 Speaker 1: even run those numbers at nine or ten percent, let's say, 252 00:11:36,160 --> 00:11:37,600 Speaker 1: and it would be even a whole lot bigger than 253 00:11:37,640 --> 00:11:40,959 Speaker 1: that origin. But yeah, hopefully, Yeah, it makes you think twice, 254 00:11:41,000 --> 00:11:44,079 Speaker 1: even about something a small purchase maybe that you might 255 00:11:44,200 --> 00:11:46,240 Speaker 1: like going out to to get taco bell with some friends, 256 00:11:46,559 --> 00:11:50,520 Speaker 1: where even that four or five dollar decision, you're like, man, 257 00:11:50,720 --> 00:11:52,920 Speaker 1: think about what that five dollars is going to do 258 00:11:52,960 --> 00:11:55,240 Speaker 1: for me over the next thirty or forty years. Uh, 259 00:11:55,280 --> 00:11:58,520 Speaker 1: And it makes you think twice. But we're also all 260 00:11:58,559 --> 00:12:00,800 Speaker 1: about balance on this show, and you don't want to 261 00:12:00,840 --> 00:12:03,800 Speaker 1: get in the habit of foregoing all of the wants 262 00:12:03,840 --> 00:12:06,160 Speaker 1: that you have in your life in order to shovel 263 00:12:06,240 --> 00:12:09,360 Speaker 1: money away for your future. We would say, don't forego your, 264 00:12:09,520 --> 00:12:12,120 Speaker 1: as you put it, your teenager needs, because all work 265 00:12:12,160 --> 00:12:15,839 Speaker 1: and no play makes argent adult kid, right, And so yeah, 266 00:12:16,000 --> 00:12:18,360 Speaker 1: it's it's really hard to stick with a difficult job 267 00:12:18,559 --> 00:12:21,360 Speaker 1: or that investing strategy if you don't allow yourself to 268 00:12:21,400 --> 00:12:24,360 Speaker 1: at least enjoy some of the fruits of your labor now, 269 00:12:24,440 --> 00:12:28,000 Speaker 1: but how you balance that? That's that's kind of tricky, 270 00:12:28,000 --> 00:12:29,719 Speaker 1: That's right. And you know, one thing I did want 271 00:12:29,720 --> 00:12:31,920 Speaker 1: to bring up, Oregent, It sounds like your parents are 272 00:12:31,960 --> 00:12:34,559 Speaker 1: strongly encouraging you to to save every dollar that you're 273 00:12:34,559 --> 00:12:36,880 Speaker 1: currently making. And I totally get that. You know, they 274 00:12:36,880 --> 00:12:39,560 Speaker 1: probably wish that they had started investing as early as 275 00:12:39,600 --> 00:12:41,720 Speaker 1: you are looking to do, don't we all? Yeah, I 276 00:12:41,760 --> 00:12:43,960 Speaker 1: mean most of us do wish we would have started sooner. 277 00:12:44,360 --> 00:12:46,080 Speaker 1: But one thing that you might want to ask is 278 00:12:46,160 --> 00:12:49,560 Speaker 1: if they would be willing to match your contributions. And so, 279 00:12:49,640 --> 00:12:51,480 Speaker 1: let's say that you make five thousand dollars in a 280 00:12:51,520 --> 00:12:54,800 Speaker 1: given year, would your mom be willing to contribute to 281 00:12:54,800 --> 00:12:57,640 Speaker 1: your off if you invest half of your earnings? So 282 00:12:57,800 --> 00:13:00,240 Speaker 1: that would be awesome. But I also get that they 283 00:13:00,280 --> 00:13:02,319 Speaker 1: may not be in the financial position to do so, 284 00:13:02,640 --> 00:13:04,079 Speaker 1: but if they could, this is a route that we 285 00:13:04,120 --> 00:13:07,120 Speaker 1: would love to see just parents in general, anybody out 286 00:13:07,160 --> 00:13:08,680 Speaker 1: there who's listening, we would love to see you take 287 00:13:09,160 --> 00:13:11,600 Speaker 1: because they're helping their kiddoh invest more of their earnings 288 00:13:11,800 --> 00:13:14,280 Speaker 1: while still allowing them to use some of that money 289 00:13:14,320 --> 00:13:16,320 Speaker 1: to go towards having some fun. Yeah, still being able 290 00:13:16,360 --> 00:13:18,000 Speaker 1: to hit up to Taco Bell every once in a while, 291 00:13:18,080 --> 00:13:20,600 Speaker 1: or go see a movie or you know whatever it is, 292 00:13:20,760 --> 00:13:23,480 Speaker 1: uh live live E sports events. I don't know, that's sure. 293 00:13:23,600 --> 00:13:26,160 Speaker 1: Kids are into so. And the thing is too, I 294 00:13:26,240 --> 00:13:28,800 Speaker 1: love this because this mirrors the real world, you know, like, 295 00:13:28,800 --> 00:13:30,800 Speaker 1: this isn't a handout. This is what for This is 296 00:13:30,840 --> 00:13:32,800 Speaker 1: what employers do with a four oh win k. They 297 00:13:32,880 --> 00:13:35,400 Speaker 1: match money that you contribute yourself, just to a much 298 00:13:35,720 --> 00:13:38,520 Speaker 1: bigger degree. Totally. Well yeah, I mean, well some employers 299 00:13:38,520 --> 00:13:40,920 Speaker 1: actually match a percent, and not all of them. But 300 00:13:40,960 --> 00:13:43,040 Speaker 1: the ability for your parents to do that, it is 301 00:13:43,080 --> 00:13:45,280 Speaker 1: not unrealistic for them. It's not a hand out. This 302 00:13:45,360 --> 00:13:47,040 Speaker 1: is what I'm pointing in parents that can afford to 303 00:13:47,040 --> 00:13:49,120 Speaker 1: do that, they're incentivizing their kids in the right way, 304 00:13:49,320 --> 00:13:52,440 Speaker 1: and they're helping their child or you know, the young 305 00:13:52,440 --> 00:13:55,000 Speaker 1: man or woman to to get in the habit of 306 00:13:55,040 --> 00:13:58,280 Speaker 1: doing the right thing, uh simultaneously while starting to build 307 00:13:58,320 --> 00:14:01,280 Speaker 1: wealth really really young. It's super were exciting to see 308 00:14:01,520 --> 00:14:04,000 Speaker 1: your money double instantly, and then you know that money, 309 00:14:04,080 --> 00:14:06,719 Speaker 1: like Matt said, is going to increase by a whole 310 00:14:06,760 --> 00:14:09,240 Speaker 1: lot more than that over the years. And yeah, just 311 00:14:09,280 --> 00:14:12,680 Speaker 1: remember you can't contribute more in total than you're earned 312 00:14:12,720 --> 00:14:15,839 Speaker 1: income argin, and so yeah, man, it's it's a great thing. 313 00:14:16,000 --> 00:14:18,440 Speaker 1: You're you're earning this money. You get the final choice, 314 00:14:18,600 --> 00:14:20,200 Speaker 1: and it sounds like you've got a good head on 315 00:14:20,240 --> 00:14:22,240 Speaker 1: your shoulders. So we're pretty sure that you're gonna make 316 00:14:22,240 --> 00:14:24,240 Speaker 1: a smart decision. But let us know how it goes 317 00:14:24,280 --> 00:14:26,680 Speaker 1: and let us know what you end up doing, because 318 00:14:26,720 --> 00:14:30,520 Speaker 1: we're excited to see what happens in your life and 319 00:14:30,600 --> 00:14:34,400 Speaker 1: in your wealth building process. Starting young is awesome. All right, Matt, 320 00:14:34,400 --> 00:14:37,720 Speaker 1: We've got more listener questions to get to, including one 321 00:14:37,840 --> 00:14:40,160 Speaker 1: about switching banks. How do you do it? And where 322 00:14:40,160 --> 00:14:42,040 Speaker 1: do you go? We'll get to that and more right 323 00:14:42,080 --> 00:14:52,520 Speaker 1: after this break. All right, we're back from the break. 324 00:14:52,520 --> 00:14:54,720 Speaker 1: We've got listener questions here still lined up for you. 325 00:14:54,760 --> 00:14:57,560 Speaker 1: We're gonna take a question about target date funds, but 326 00:14:57,600 --> 00:14:59,720 Speaker 1: first let's hear from a listener who is asking about 327 00:15:00,000 --> 00:15:04,240 Speaker 1: waching banks. Hey, Matt and Joel, this is Tasha from Spokane, Washington. 328 00:15:04,360 --> 00:15:07,120 Speaker 1: First Starters. Thank you so much for the show. I've 329 00:15:07,120 --> 00:15:10,360 Speaker 1: been listening for about three years and it has helped 330 00:15:10,360 --> 00:15:12,800 Speaker 1: me budget and pay off more than thirty thou dollars 331 00:15:12,920 --> 00:15:16,480 Speaker 1: in consumer debt and even pay off my car loan early. 332 00:15:16,920 --> 00:15:19,480 Speaker 1: Also shout out to our Facebook community because you guys 333 00:15:19,480 --> 00:15:22,600 Speaker 1: are always on it in there too. Anyway, onto my 334 00:15:22,720 --> 00:15:26,200 Speaker 1: question at hand. So I am looking to switch from 335 00:15:26,200 --> 00:15:30,680 Speaker 1: a big bank to a local credit union. Um, I've 336 00:15:30,680 --> 00:15:32,880 Speaker 1: been with my bank for about ten years. I'm from 337 00:15:32,920 --> 00:15:35,400 Speaker 1: a small town in eastern Montana where there wasn't you know, 338 00:15:35,480 --> 00:15:38,320 Speaker 1: much of a choice. But it's not serving me like 339 00:15:38,400 --> 00:15:40,280 Speaker 1: it used to, and I want to make the switch. 340 00:15:40,480 --> 00:15:42,320 Speaker 1: I'm wondering if you guys have like a step by 341 00:15:42,320 --> 00:15:46,240 Speaker 1: step checklist maybe to help me get everything in order 342 00:15:46,400 --> 00:15:51,000 Speaker 1: to switch all my stuff on over. Thank you by Matt. First, 343 00:15:51,040 --> 00:15:55,480 Speaker 1: I gotta say yes, Tasha paid off debt and the 344 00:15:55,520 --> 00:15:57,880 Speaker 1: car loan. Tasha, we love it. Thanks for sharing that 345 00:15:57,960 --> 00:16:00,840 Speaker 1: those wins, and yes, I love what she said. Also 346 00:16:00,840 --> 00:16:03,320 Speaker 1: about the Facebook community, it is a bunch of awesome 347 00:16:03,320 --> 00:16:05,960 Speaker 1: folks helping each other out on the rag. If you 348 00:16:06,000 --> 00:16:08,760 Speaker 1: are listening and you're looking for online encouragement, we would 349 00:16:08,920 --> 00:16:11,720 Speaker 1: suggest that and you're also you know, a member of 350 00:16:11,720 --> 00:16:14,160 Speaker 1: Facebook would say go in there, type how the money 351 00:16:14,200 --> 00:16:16,680 Speaker 1: in the search bar, find our group and join it 352 00:16:16,720 --> 00:16:19,360 Speaker 1: because there are a lot of good conversations happening in 353 00:16:19,400 --> 00:16:22,080 Speaker 1: there a lot of good question answering, and yeah, you 354 00:16:22,120 --> 00:16:25,160 Speaker 1: can take advantage use the hive mind, the how to 355 00:16:25,240 --> 00:16:27,720 Speaker 1: money listenership as a whole to year benefit. I would 356 00:16:27,760 --> 00:16:30,400 Speaker 1: even say that it's worth joining Facebook just to join 357 00:16:30,440 --> 00:16:33,080 Speaker 1: our group. Yes, but then like, um, just side note, 358 00:16:33,120 --> 00:16:36,760 Speaker 1: I have that news feed eradicator, so I don't even 359 00:16:36,760 --> 00:16:39,160 Speaker 1: have to see anybody else's postings. I can go straight 360 00:16:39,200 --> 00:16:41,120 Speaker 1: to the group and only see that stuff. If that's 361 00:16:41,160 --> 00:16:44,320 Speaker 1: what you're concerned about getting addicted to scrolling Facebook called day, 362 00:16:44,440 --> 00:16:46,720 Speaker 1: that's a good plug in there. You go. Uh well, Tasha, 363 00:16:46,800 --> 00:16:49,880 Speaker 1: let's talk about finding the right bank, because it makes 364 00:16:49,880 --> 00:16:52,320 Speaker 1: a huge difference. And you know, leaving one of those 365 00:16:52,360 --> 00:16:54,760 Speaker 1: big banks is something that we highly recommend because the 366 00:16:54,840 --> 00:16:58,800 Speaker 1: fees are typically outrageous, the customer service is a subpar, 367 00:16:59,440 --> 00:17:02,600 Speaker 1: and that's actually putting it nicely, because doing business with 368 00:17:02,640 --> 00:17:05,000 Speaker 1: a bank that actually want your business and treat you 369 00:17:05,040 --> 00:17:08,200 Speaker 1: well as something that we think everyone should prioritize. And yes, 370 00:17:08,240 --> 00:17:10,159 Speaker 1: we actually do have a guide that we just recently 371 00:17:10,200 --> 00:17:13,040 Speaker 1: published up on the site about switching banks. In that article, 372 00:17:13,080 --> 00:17:14,800 Speaker 1: we talk about how to make the switch, and we 373 00:17:14,880 --> 00:17:17,000 Speaker 1: highlight some of our favorite banks that we think are 374 00:17:17,000 --> 00:17:19,359 Speaker 1: worth considering. But also, of course get to some of 375 00:17:19,359 --> 00:17:23,160 Speaker 1: your question here during this episode, and I would say, 376 00:17:23,560 --> 00:17:26,480 Speaker 1: you know, Tasha, you specifically mentioned moving your money over 377 00:17:26,520 --> 00:17:28,960 Speaker 1: to a credit union, and that might be a great option, 378 00:17:29,359 --> 00:17:31,520 Speaker 1: but we would say, make sure that the credit union 379 00:17:31,560 --> 00:17:34,560 Speaker 1: that you're joining has the perks that you like. We 380 00:17:34,840 --> 00:17:36,960 Speaker 1: did a whole episode on credit unions a while back. Man, 381 00:17:37,000 --> 00:17:39,320 Speaker 1: we think they're great, but it's often best to have 382 00:17:39,320 --> 00:17:41,840 Speaker 1: a relationship, we would say, with an online bank and 383 00:17:42,000 --> 00:17:44,280 Speaker 1: with a credit union. And that's because some of the 384 00:17:44,280 --> 00:17:47,760 Speaker 1: online banks are doing the best work when it comes 385 00:17:47,760 --> 00:17:51,080 Speaker 1: to providing the features that most folks actually want. And 386 00:17:51,160 --> 00:17:54,600 Speaker 1: so like Ally Marcus Discover and one which is a 387 00:17:54,600 --> 00:17:57,200 Speaker 1: new player with cool features. They all have we would say, 388 00:17:57,200 --> 00:18:00,600 Speaker 1: better user interfaces, better options for online banking. Uh, some 389 00:18:00,640 --> 00:18:03,560 Speaker 1: of them are paying much higher rates of interest than 390 00:18:03,840 --> 00:18:05,600 Speaker 1: most of the big banks, of course, and then a 391 00:18:05,600 --> 00:18:08,000 Speaker 1: lot of credit unions, and so yeah, with the solid 392 00:18:08,119 --> 00:18:10,560 Speaker 1: online bank, it's going to be easier to do something 393 00:18:10,560 --> 00:18:13,120 Speaker 1: as simple as pulling up your monthly statements. I don't 394 00:18:13,119 --> 00:18:15,080 Speaker 1: know why, like I love my credit union, pulling up 395 00:18:15,080 --> 00:18:17,720 Speaker 1: a monthly statement on that website is it makes me 396 00:18:17,760 --> 00:18:19,560 Speaker 1: want to like punch myself and it's like, it sounds 397 00:18:19,560 --> 00:18:21,959 Speaker 1: silly to say that this is something that oh, online 398 00:18:22,000 --> 00:18:24,239 Speaker 1: banks offer this, but literally it's because a lot of 399 00:18:24,280 --> 00:18:27,720 Speaker 1: local credit unions have not prioritized this, and trying to 400 00:18:27,720 --> 00:18:29,760 Speaker 1: pull up some documents for a refinance that I did 401 00:18:29,840 --> 00:18:33,480 Speaker 1: last year was the most painful thing ever, trying to 402 00:18:33,520 --> 00:18:37,000 Speaker 1: like avoid jabbing yourself in the It's like, yeah, so yeah, 403 00:18:37,040 --> 00:18:39,399 Speaker 1: we would say credit unions are typically best when it 404 00:18:39,400 --> 00:18:42,800 Speaker 1: comes to borrowing, and they often have better rates if 405 00:18:42,840 --> 00:18:45,480 Speaker 1: you're looking to get alone. But when it comes to 406 00:18:45,800 --> 00:18:49,439 Speaker 1: just traditional savings and checking, the online banks often have 407 00:18:49,640 --> 00:18:51,560 Speaker 1: the best products, right, and you can get those better 408 00:18:51,640 --> 00:18:55,400 Speaker 1: rates with the local credit union oftentimes because they are 409 00:18:55,520 --> 00:18:58,639 Speaker 1: member owned. So we need deposit money with a credit union. 410 00:18:58,680 --> 00:19:00,640 Speaker 1: You become a member and say is this member owned? 411 00:19:00,720 --> 00:19:03,240 Speaker 1: The credit union isn't looking to milk every single dollar 412 00:19:03,640 --> 00:19:06,880 Speaker 1: that it can, as they are not for profit organizations. 413 00:19:07,640 --> 00:19:11,200 Speaker 1: But since credit unions aren't charging as much interest, they 414 00:19:11,200 --> 00:19:13,879 Speaker 1: are not in the business of feeing you to death. 415 00:19:14,440 --> 00:19:16,760 Speaker 1: That also means that they're paying a lower rate of 416 00:19:16,760 --> 00:19:18,960 Speaker 1: interest on the money that you do have with them. 417 00:19:19,600 --> 00:19:21,560 Speaker 1: But that being said, you never know because we talked 418 00:19:21,560 --> 00:19:25,120 Speaker 1: about CASASA a while back, and if your credit union 419 00:19:25,200 --> 00:19:28,359 Speaker 1: participates in that program, they might pay you something close 420 00:19:28,400 --> 00:19:31,119 Speaker 1: to like the three percent range on your savings if 421 00:19:31,119 --> 00:19:33,439 Speaker 1: you jump through a few hoops, which usually means you know, 422 00:19:33,520 --> 00:19:36,120 Speaker 1: using your debit card UH ten or twelve times a month, 423 00:19:36,480 --> 00:19:40,040 Speaker 1: or direct depositing your paycheck into that credit union account. 424 00:19:40,280 --> 00:19:41,840 Speaker 1: And so this is the way that you might be 425 00:19:41,880 --> 00:19:43,840 Speaker 1: able to get the best of both worlds. So it's 426 00:19:43,880 --> 00:19:46,240 Speaker 1: worth looking around. It's worth asking about because if you're 427 00:19:46,280 --> 00:19:48,720 Speaker 1: able to, you know, knock out two birds with one stone. 428 00:19:48,880 --> 00:19:51,440 Speaker 1: But that's definitely gonna be the easiest way to go. Yeah, Ultimately, 429 00:19:51,480 --> 00:19:53,439 Speaker 1: it's it's not that big of a deal for you 430 00:19:53,440 --> 00:19:56,399 Speaker 1: to switch either. So we would say drop the gross 431 00:19:56,400 --> 00:19:58,440 Speaker 1: bank that you're with and and go with a local 432 00:19:58,480 --> 00:20:02,080 Speaker 1: credit union or a medium eyes online bank, depending on 433 00:20:02,200 --> 00:20:05,000 Speaker 1: your needs and what the offerings are from each of 434 00:20:05,040 --> 00:20:08,399 Speaker 1: those institutions. I think, Matt, sometimes people build it up 435 00:20:08,400 --> 00:20:10,320 Speaker 1: in their mind. They're like switching banks, Oh, this is 436 00:20:10,320 --> 00:20:13,800 Speaker 1: gonna be horrible, it's gonna take me forever, And I 437 00:20:13,800 --> 00:20:16,640 Speaker 1: think that's what prevents people from taking action. It's it's 438 00:20:16,680 --> 00:20:19,400 Speaker 1: like this inertia bias and we're like, we're just gonna 439 00:20:19,400 --> 00:20:21,840 Speaker 1: stay with the default thing because we know what it is, 440 00:20:22,160 --> 00:20:24,119 Speaker 1: and we know that this other product might be better, 441 00:20:24,160 --> 00:20:26,359 Speaker 1: but it's probably not worth the time to switch. Well, 442 00:20:26,440 --> 00:20:28,800 Speaker 1: we would disagree. We think it is worth the time 443 00:20:28,800 --> 00:20:30,640 Speaker 1: to switch, and we would say it doesn't take all 444 00:20:30,640 --> 00:20:32,960 Speaker 1: that long to set up a new account either. But 445 00:20:33,040 --> 00:20:35,119 Speaker 1: you need to make sure that once your new account 446 00:20:35,240 --> 00:20:38,520 Speaker 1: is open, that you deposit funds and then you switch 447 00:20:38,560 --> 00:20:41,919 Speaker 1: any automatic payments and deposits to that new bank or 448 00:20:41,960 --> 00:20:44,119 Speaker 1: credit union. Over the course of the next thirty to 449 00:20:44,200 --> 00:20:46,280 Speaker 1: sixty days, you're gonna want to make sure that like 450 00:20:46,359 --> 00:20:49,639 Speaker 1: all of those ties, all of those recurring transactions have 451 00:20:49,840 --> 00:20:52,080 Speaker 1: moved over to this new institution where you're planning to 452 00:20:52,119 --> 00:20:55,560 Speaker 1: do most of your banking. And so yeah, once all 453 00:20:55,600 --> 00:20:57,920 Speaker 1: the ties to that old account have been severed, you're 454 00:20:57,920 --> 00:21:00,359 Speaker 1: good to close the old accounts, but you want to 455 00:21:00,359 --> 00:21:02,080 Speaker 1: make sure you do it in a methodical way. Have 456 00:21:02,160 --> 00:21:04,480 Speaker 1: both of those accounts open for a period of time 457 00:21:04,520 --> 00:21:07,159 Speaker 1: while you're making the switch, and then just make for 458 00:21:07,280 --> 00:21:10,920 Speaker 1: darn sure that you've got everything routed, all those all 459 00:21:10,960 --> 00:21:14,480 Speaker 1: those automatic things routed over to the new institution where 460 00:21:14,480 --> 00:21:16,920 Speaker 1: you're gonna be doing most of your business. That's right, Satasha. 461 00:21:17,000 --> 00:21:19,480 Speaker 1: Best of lux you uh, and regardless, we are sure 462 00:21:19,520 --> 00:21:21,840 Speaker 1: that you're gonna be much happier with your new bank, Jill. 463 00:21:21,880 --> 00:21:23,920 Speaker 1: Let's get to our next question, where a listener is 464 00:21:24,000 --> 00:21:27,480 Speaker 1: asking about a special technique that he can employ when 465 00:21:27,480 --> 00:21:31,080 Speaker 1: it comes to target date funds. Hey, Matt and Joe, 466 00:21:31,440 --> 00:21:34,800 Speaker 1: this is Randy calling from Pennsylvania. I am a government 467 00:21:34,840 --> 00:21:38,440 Speaker 1: employee contributing to my four seven b right now, and 468 00:21:38,480 --> 00:21:42,919 Speaker 1: I'm eligible to retire with a full pension in two years. 469 00:21:43,600 --> 00:21:47,840 Speaker 1: I currently have all of the money in the target fund, 470 00:21:48,400 --> 00:21:55,200 Speaker 1: but my plans representative UM said that I should move into, into, 471 00:21:56,720 --> 00:22:04,080 Speaker 1: and into and keep into the fund when I recently 472 00:22:04,119 --> 00:22:08,680 Speaker 1: participated in their retirement readiness review. He says, since I'll 473 00:22:08,680 --> 00:22:11,840 Speaker 1: be withdrawing the money slowly at three or four percent 474 00:22:11,960 --> 00:22:14,359 Speaker 1: per year per year for the next twenty five to 475 00:22:14,440 --> 00:22:17,359 Speaker 1: thirty three years, that I should spread out the investment 476 00:22:17,880 --> 00:22:20,320 Speaker 1: so they keep working for me. Right now, I have 477 00:22:20,359 --> 00:22:26,520 Speaker 1: everything in the fund, which is currently bonds and stock, 478 00:22:27,119 --> 00:22:29,719 Speaker 1: and I thought the point of the target funds was 479 00:22:29,880 --> 00:22:32,800 Speaker 1: to put them in the year closest to retirement, which 480 00:22:33,720 --> 00:22:36,040 Speaker 1: would be closest to my retirement at the end of 481 00:22:37,640 --> 00:22:39,680 Speaker 1: and I thought, you just put him in that target 482 00:22:39,720 --> 00:22:42,760 Speaker 1: fund and kind of set it and forget it, and 483 00:22:42,800 --> 00:22:45,159 Speaker 1: the closer you get to retirement, the less risk you 484 00:22:45,200 --> 00:22:47,760 Speaker 1: would have. But I kind of see his point to 485 00:22:47,960 --> 00:22:51,119 Speaker 1: that if I'm not withdrawing the money as fast, then 486 00:22:51,320 --> 00:22:53,879 Speaker 1: I should allow some of it to continue working for me. 487 00:22:53,960 --> 00:22:56,199 Speaker 1: But of course that would also mean more risks. So 488 00:22:56,240 --> 00:22:59,159 Speaker 1: I was just wondering what you thought of that, and um, 489 00:22:59,200 --> 00:23:02,240 Speaker 1: I will look forward to your answer. So thank you guys, 490 00:23:02,359 --> 00:23:05,359 Speaker 1: and keep up the great show. Randy, thanks for your question. 491 00:23:05,480 --> 00:23:08,800 Speaker 1: And Matt, can I first just say pensions are awesome. Yeah, 492 00:23:09,200 --> 00:23:11,639 Speaker 1: I kind of hate that they're a relic of the 493 00:23:11,640 --> 00:23:16,240 Speaker 1: past that most people don't have a pension offered to them, 494 00:23:16,320 --> 00:23:19,080 Speaker 1: because it is so helpful from a retirement planning perspective, 495 00:23:19,359 --> 00:23:22,320 Speaker 1: Like for instance, Randy, it just, uh, it makes these 496 00:23:22,359 --> 00:23:25,600 Speaker 1: decisions so much less onerous when you know that a 497 00:23:25,680 --> 00:23:27,639 Speaker 1: huge portion of the income you're gonna need it in 498 00:23:27,680 --> 00:23:31,520 Speaker 1: retirement is covered by pension and Social Security. And so yeah, 499 00:23:31,600 --> 00:23:34,440 Speaker 1: the most of us, like we we had to a 500 00:23:34,440 --> 00:23:37,240 Speaker 1: bigger burden to suck more away for our future selves. 501 00:23:37,440 --> 00:23:39,199 Speaker 1: And that's a big reason, Matt, why why you and 502 00:23:39,240 --> 00:23:41,040 Speaker 1: I were sitting here. We want to encourage people to 503 00:23:41,119 --> 00:23:43,800 Speaker 1: save more because yeah, there's got to be more proactive 504 00:23:43,960 --> 00:23:47,399 Speaker 1: exactly the generations in the past. Exactly. Yeah, But because 505 00:23:47,520 --> 00:23:49,880 Speaker 1: Randy's got one, it's gonna be a big help in 506 00:23:49,920 --> 00:23:53,200 Speaker 1: this scenario. That's right. And so essentially, Randy, what your 507 00:23:53,240 --> 00:23:56,240 Speaker 1: financial advisor or the whoever you met with, what they're 508 00:23:56,280 --> 00:23:58,960 Speaker 1: advising you to do is essentially called laddering. We've talked 509 00:23:59,000 --> 00:24:01,359 Speaker 1: about this before when it comes to c ds, but 510 00:24:01,440 --> 00:24:03,840 Speaker 1: this is a strategy that that made sense before CDs 511 00:24:03,880 --> 00:24:06,719 Speaker 1: basically became like giant nothing burgers in regards to how 512 00:24:06,800 --> 00:24:09,320 Speaker 1: much interest you can learn. Like, right now, CD rates 513 00:24:09,320 --> 00:24:11,080 Speaker 1: are solo that it's hard to make much of a 514 00:24:11,119 --> 00:24:13,280 Speaker 1: case for them at all. But I get what your 515 00:24:13,280 --> 00:24:15,800 Speaker 1: advisor is getting at in regards to to laddering your 516 00:24:15,800 --> 00:24:19,280 Speaker 1: target date fund exposure, because I think the major reason 517 00:24:19,320 --> 00:24:22,280 Speaker 1: that they're suggesting that you do this is because, like 518 00:24:22,320 --> 00:24:25,320 Speaker 1: one of the main criticisms of target date funds is 519 00:24:25,359 --> 00:24:28,520 Speaker 1: the fact that they become too conservative once you reach retirement. 520 00:24:29,119 --> 00:24:31,080 Speaker 1: That's what you describe to us, and it's you know, 521 00:24:31,080 --> 00:24:33,439 Speaker 1: it's still important to have some exposure to the market. 522 00:24:33,600 --> 00:24:36,240 Speaker 1: Even in those retirement years, you still need to have 523 00:24:36,280 --> 00:24:38,280 Speaker 1: some skin in the game so that money continues to 524 00:24:38,280 --> 00:24:40,480 Speaker 1: work for you. That's right. Yeah, But a target date 525 00:24:40,480 --> 00:24:44,600 Speaker 1: fund in those retirement years, it does have equity exposure still, 526 00:24:44,640 --> 00:24:48,320 Speaker 1: although a smaller percentage of your portfolio. Right. So basically 527 00:24:48,400 --> 00:24:51,000 Speaker 1: that means that massive abouts of volatility in the market 528 00:24:51,000 --> 00:24:53,960 Speaker 1: are going to have like this significant impact on your 529 00:24:53,960 --> 00:24:58,040 Speaker 1: portfolio balance. When we see a huge stock market draw down, Well, 530 00:24:58,160 --> 00:25:00,679 Speaker 1: those bonds are going to help you whether storm and 531 00:25:00,720 --> 00:25:04,280 Speaker 1: expect and experience less of those negative consequences. But the 532 00:25:04,280 --> 00:25:06,960 Speaker 1: thing is, likewise said, you're still going to have some 533 00:25:07,000 --> 00:25:10,119 Speaker 1: stocks in your target date fund, likely close to that 534 00:25:10,160 --> 00:25:13,240 Speaker 1: like you mentioned. So the traditional answer, Randy would be 535 00:25:13,240 --> 00:25:15,360 Speaker 1: exactly what you said, set it and forget it. Take 536 00:25:15,400 --> 00:25:17,720 Speaker 1: the simple answer, and I would say, I think that 537 00:25:17,760 --> 00:25:20,960 Speaker 1: does make sense for most folks. But part of the 538 00:25:21,000 --> 00:25:24,560 Speaker 1: answer comes down to your specific goals other than retiring 539 00:25:24,560 --> 00:25:25,960 Speaker 1: in a couple of years. At the end of let's 540 00:25:25,960 --> 00:25:28,760 Speaker 1: say three are you gonna be happy with the nest 541 00:25:28,760 --> 00:25:31,160 Speaker 1: egg that you've been able to stash away? If so, 542 00:25:31,520 --> 00:25:33,040 Speaker 1: and you don't want to think about it anymore than 543 00:25:33,200 --> 00:25:37,119 Speaker 1: leaf things like they are all in that fund. But maybe, 544 00:25:37,119 --> 00:25:39,919 Speaker 1: on the other hand, are you hoping to see bigger gains, 545 00:25:39,960 --> 00:25:42,399 Speaker 1: like larger amounts of growth and you can afford to 546 00:25:42,440 --> 00:25:44,840 Speaker 1: take that risk. Well, if that's the case, then taking 547 00:25:44,840 --> 00:25:48,240 Speaker 1: a slightly more involved approach by laddering that target day 548 00:25:48,240 --> 00:25:51,760 Speaker 1: fund it does allow you the ability to continue to 549 00:25:51,760 --> 00:25:54,800 Speaker 1: take a little more risk in that hope for greater 550 00:25:55,240 --> 00:25:57,879 Speaker 1: financial rewards. Yeah. Honestly, the way I think about target 551 00:25:57,960 --> 00:26:00,320 Speaker 1: date funds like it makes me think of like an 552 00:26:00,320 --> 00:26:03,000 Speaker 1: automatic transmission on a card jill or like a stick shift. 553 00:26:03,280 --> 00:26:06,120 Speaker 1: I see target day funds as the automatic transmission, whereas 554 00:26:06,160 --> 00:26:08,800 Speaker 1: like single like buying single stocks, that's like driving a 555 00:26:08,840 --> 00:26:11,600 Speaker 1: stick shift. And most folks, right, you know these days, 556 00:26:11,640 --> 00:26:14,800 Speaker 1: have never driven a stick shift as because automatics are great. 557 00:26:14,840 --> 00:26:17,080 Speaker 1: I miss my stick shift, do you, Well, maybe you 558 00:26:17,080 --> 00:26:20,280 Speaker 1: should trade single stocks kind of get a feel Therefore, Well, 559 00:26:20,400 --> 00:26:22,639 Speaker 1: I like stick shifts, but not trading singles. So okay. 560 00:26:23,000 --> 00:26:25,120 Speaker 1: So the reason I mentioned this though, is because there 561 00:26:25,160 --> 00:26:27,960 Speaker 1: are some cars that even though it's an automatic, he 562 00:26:28,000 --> 00:26:30,360 Speaker 1: can kind of switch it to sport mode or there's 563 00:26:30,400 --> 00:26:32,639 Speaker 1: like even like kind of like paddle shifters. Yeah, there's 564 00:26:32,640 --> 00:26:34,399 Speaker 1: like these fancier cars like little sports cars where they 565 00:26:34,400 --> 00:26:37,560 Speaker 1: have paddle shifters built into it, and it's an automatic, 566 00:26:37,640 --> 00:26:39,640 Speaker 1: but it does give you a little bit more control. 567 00:26:39,880 --> 00:26:42,320 Speaker 1: That's sort of how I see laddering target date funds 568 00:26:42,320 --> 00:26:45,480 Speaker 1: like this. It's there, there's still these automatic funds in 569 00:26:45,520 --> 00:26:46,960 Speaker 1: the sense that you don't have to worry about it, 570 00:26:47,000 --> 00:26:48,840 Speaker 1: but by laddering them like that, you get a little 571 00:26:48,840 --> 00:26:51,040 Speaker 1: bit more control. Uh. And so if you wanted to 572 00:26:51,119 --> 00:26:52,560 Speaker 1: lean into it a little bit more, it's a way 573 00:26:52,600 --> 00:26:55,280 Speaker 1: for you to be more involved in that process, Randy. 574 00:26:55,400 --> 00:26:58,040 Speaker 1: And it's also important to consider what kind of flexibility 575 00:26:58,320 --> 00:27:01,280 Speaker 1: that you'll have once you enter your retirement years, right, 576 00:27:01,480 --> 00:27:04,200 Speaker 1: and so the market tanks right after you retire, it's 577 00:27:04,200 --> 00:27:07,720 Speaker 1: important to not be completely dependent on those funds. It 578 00:27:07,760 --> 00:27:10,600 Speaker 1: would be great if you could significantly cut expenses, or 579 00:27:10,640 --> 00:27:13,240 Speaker 1: better yet, if you could supplement your income. And as 580 00:27:13,320 --> 00:27:15,600 Speaker 1: luck would have it, you do actually have a pension 581 00:27:15,640 --> 00:27:17,919 Speaker 1: to cover a big chunk of your living expenses, and 582 00:27:17,960 --> 00:27:19,400 Speaker 1: so you might be willing to take on some added 583 00:27:19,480 --> 00:27:22,440 Speaker 1: risk by increasing your stock exposure. So it's important to 584 00:27:22,480 --> 00:27:24,400 Speaker 1: keep in mind that this is a personal decision based 585 00:27:24,400 --> 00:27:26,679 Speaker 1: on your timeline, your goals, and your comfort level. UH. 586 00:27:26,760 --> 00:27:30,240 Speaker 1: Specifically with stock market gyrations. But if your goal is 587 00:27:30,280 --> 00:27:32,879 Speaker 1: to you know, like eke out a slightly higher return 588 00:27:32,920 --> 00:27:35,199 Speaker 1: and you don't mind a ride with more ups and 589 00:27:35,280 --> 00:27:37,760 Speaker 1: downs than more stocks, is probably going to be a 590 00:27:37,760 --> 00:27:39,359 Speaker 1: good idea for you. But if you're the type of 591 00:27:39,440 --> 00:27:42,640 Speaker 1: dude who is monitoring the market and would be more 592 00:27:42,680 --> 00:27:46,160 Speaker 1: emotionally affected by what's happening on a weekly or monthly basis, 593 00:27:46,840 --> 00:27:48,359 Speaker 1: or if you just don't want to have to think 594 00:27:48,400 --> 00:27:50,639 Speaker 1: about it, I would just stick with the single target 595 00:27:50,720 --> 00:27:53,040 Speaker 1: date fund and not worry about it at all. Yeah, 596 00:27:53,119 --> 00:27:55,840 Speaker 1: the mental game is such a huge part of even 597 00:27:55,880 --> 00:27:58,440 Speaker 1: just a decision like this. But like you said, Matt, 598 00:27:58,480 --> 00:28:00,720 Speaker 1: I mean that pension just to offer such a great 599 00:28:00,720 --> 00:28:04,240 Speaker 1: backstop that really either decision, I feel like we're talking 600 00:28:04,240 --> 00:28:06,680 Speaker 1: about minor tweaks and we're not talking about major overhauls. 601 00:28:06,720 --> 00:28:09,680 Speaker 1: And so either decision Rainy makes, he's gonna be fine, uh, 602 00:28:09,720 --> 00:28:11,520 Speaker 1: And he just has to be willing to be flexible 603 00:28:11,560 --> 00:28:15,440 Speaker 1: and know like that, don't don't let this decision overcome 604 00:28:15,480 --> 00:28:17,879 Speaker 1: you from like an emotional perspective when it comes to 605 00:28:17,920 --> 00:28:19,720 Speaker 1: your investment. All right, Matt, We've got a couple more 606 00:28:19,840 --> 00:28:22,560 Speaker 1: questions to get to including one about paying off a 607 00:28:22,600 --> 00:28:25,439 Speaker 1: mortgage doesn't make sense. Well, we'll get to that and 608 00:28:25,520 --> 00:28:37,080 Speaker 1: more right after this break. Alright, we're back. We've got 609 00:28:37,119 --> 00:28:39,719 Speaker 1: a couple more listener questions we're gonna hear from somebody 610 00:28:39,720 --> 00:28:43,080 Speaker 1: who wants to know what's benefits she's going to miss 611 00:28:43,120 --> 00:28:46,200 Speaker 1: out on by joining the ranks of the self employed. Hey, 612 00:28:46,200 --> 00:28:48,040 Speaker 1: Matt and Joel, my name is Brittany. I'm from New 613 00:28:48,120 --> 00:28:50,480 Speaker 1: York and I'm a huge fan of your podcast. I'm 614 00:28:50,520 --> 00:28:52,600 Speaker 1: about to turn twenty four and I'm currently still living 615 00:28:52,600 --> 00:28:54,920 Speaker 1: at home with my dad. I'm a musician and writer, 616 00:28:54,960 --> 00:28:57,200 Speaker 1: so I work multiple part time and gig based jobs 617 00:28:57,200 --> 00:28:59,600 Speaker 1: to allow for flexibility in my schedule for gigs and 618 00:28:59,640 --> 00:29:02,440 Speaker 1: to allow out time to work on creative projects. I'm 619 00:29:02,440 --> 00:29:04,720 Speaker 1: hoping to move out within the year with my boyfriend, 620 00:29:04,720 --> 00:29:07,280 Speaker 1: who is pretty much in the same boat as I am. 621 00:29:07,280 --> 00:29:08,920 Speaker 1: So my question is a bit of a two parter 622 00:29:09,040 --> 00:29:11,400 Speaker 1: having to do with health insurance and saving for retirement. 623 00:29:11,600 --> 00:29:13,760 Speaker 1: I'm lucky enough to be on my dad's health insurance 624 00:29:13,760 --> 00:29:15,960 Speaker 1: plan until I turned twenty six, but if I continue 625 00:29:15,960 --> 00:29:18,120 Speaker 1: to work part time jobs and be self employed, as 626 00:29:18,120 --> 00:29:21,680 Speaker 1: you know, there's no benefits. Are there any affordable options 627 00:29:21,680 --> 00:29:24,600 Speaker 1: for health care for someone who makes about forty K 628 00:29:24,720 --> 00:29:27,200 Speaker 1: a year. My second question is, in the absence of 629 00:29:27,240 --> 00:29:29,440 Speaker 1: a four and one K for the time being, is 630 00:29:29,440 --> 00:29:32,080 Speaker 1: it sufficient to keep investing in my wrath and traditional 631 00:29:32,080 --> 00:29:35,480 Speaker 1: I ras. Lastly, as two people who are currently self employed, 632 00:29:35,560 --> 00:29:38,560 Speaker 1: are there any costs I'm forgetting about before I take 633 00:29:38,560 --> 00:29:41,680 Speaker 1: the plunge into this kind of lifestyle. Thank you so 634 00:29:41,800 --> 00:29:45,400 Speaker 1: much for everything you do. I absolutely love your podcast, 635 00:29:45,480 --> 00:29:47,960 Speaker 1: so keep up the good work. Brittany, thank you for 636 00:29:48,000 --> 00:29:50,000 Speaker 1: the kind words. We appreciate you. Listen to the show 637 00:29:50,280 --> 00:29:53,240 Speaker 1: and again, like I'm talking about origin starting in his 638 00:29:53,320 --> 00:29:55,960 Speaker 1: teenage years, I mean, Brittany starting at age twenty four 639 00:29:56,280 --> 00:29:58,440 Speaker 1: or even early. She's been listening for a while. She said, like, 640 00:29:58,800 --> 00:30:01,120 Speaker 1: there's just so many years for her to use that 641 00:30:01,200 --> 00:30:04,880 Speaker 1: knowledge to build wealth, and that's that's awesome. So yeah, 642 00:30:04,920 --> 00:30:07,400 Speaker 1: let's talk about healthcare for a second, Brinning lest start there, 643 00:30:07,560 --> 00:30:09,960 Speaker 1: being on your parents health insurance plan until age twenty 644 00:30:10,040 --> 00:30:12,920 Speaker 1: six is a nice perk that, oh yeah, it wasn't 645 00:30:12,920 --> 00:30:15,920 Speaker 1: a reality until Obamacare came along, and so for a 646 00:30:16,040 --> 00:30:19,640 Speaker 1: lot of young adults, it allows you a lot more 647 00:30:19,680 --> 00:30:23,040 Speaker 1: flexibility when it comes to your health care if your 648 00:30:23,080 --> 00:30:25,400 Speaker 1: parents have a good health care plan that you can 649 00:30:25,600 --> 00:30:29,280 Speaker 1: still squeeze into, and so yeah, the crazy thing is 650 00:30:29,280 --> 00:30:31,360 Speaker 1: that you can still keep that benefit even if you 651 00:30:31,400 --> 00:30:34,640 Speaker 1: move out, even if you're gainfully employed somewhere else. And 652 00:30:34,800 --> 00:30:36,560 Speaker 1: this is the kicker, even if you get married, you 653 00:30:36,600 --> 00:30:39,120 Speaker 1: can you can stay on that health care plan. And so, yeah, 654 00:30:39,200 --> 00:30:41,120 Speaker 1: you don't have to be a dependent on your parents 655 00:30:41,160 --> 00:30:43,400 Speaker 1: taxes in order to join that plan. That's right, And 656 00:30:43,680 --> 00:30:45,800 Speaker 1: it might be worth having a discussion with your dad though, 657 00:30:45,840 --> 00:30:48,240 Speaker 1: to see maybe you can reimburse him for some of 658 00:30:48,240 --> 00:30:52,120 Speaker 1: the extra premium costs, take him off for drinks or meal. Maybe. Yeah. 659 00:30:52,120 --> 00:30:54,480 Speaker 1: But you know something, especially if you're moving out, it's 660 00:30:54,480 --> 00:30:56,560 Speaker 1: one of those times where you can say, hey, listen, dad, 661 00:30:56,640 --> 00:30:58,400 Speaker 1: I know that this costs you money, and I should 662 00:30:58,400 --> 00:31:01,680 Speaker 1: be getting my own healthcare plan. What can I pay 663 00:31:01,760 --> 00:31:04,240 Speaker 1: for my portion? Or can I reimburse you for some 664 00:31:04,320 --> 00:31:06,440 Speaker 1: of that? And you know, he he might say no, 665 00:31:06,560 --> 00:31:08,560 Speaker 1: it's fine, I don't mind doing this, um, but he 666 00:31:08,680 --> 00:31:11,280 Speaker 1: might at least appreciate the gesture. That's right. But when 667 00:31:11,320 --> 00:31:14,520 Speaker 1: the time comes for you to leave your parents plan, uh, 668 00:31:14,600 --> 00:31:18,520 Speaker 1: it's probably gonna be worth shopping the government marketplace because 669 00:31:18,520 --> 00:31:22,080 Speaker 1: of the increased subsidies that have been added the legislation 670 00:31:22,200 --> 00:31:24,479 Speaker 1: during COVID, and so you can go to healthcare dot 671 00:31:24,560 --> 00:31:26,560 Speaker 1: gov and it'll send you over to the State of 672 00:31:26,600 --> 00:31:29,120 Speaker 1: New York's website uh in order for you to shop 673 00:31:29,160 --> 00:31:31,640 Speaker 1: for a plan. And you might find that these subsidies 674 00:31:31,720 --> 00:31:34,600 Speaker 1: make healthcare really affordable for someone who is in your 675 00:31:34,600 --> 00:31:37,240 Speaker 1: income range. Um. But the thing is, you're not gonna 676 00:31:37,240 --> 00:31:39,360 Speaker 1: know just how affordable it's going to be until you 677 00:31:39,400 --> 00:31:41,120 Speaker 1: actually run the numbers. So just get in there and 678 00:31:41,160 --> 00:31:43,640 Speaker 1: start plugging in some numbers, start getting some quotes, and 679 00:31:43,680 --> 00:31:45,360 Speaker 1: you will quickly be able to see what that's gonna 680 00:31:45,360 --> 00:31:48,560 Speaker 1: cost you. Yeah, and as you're looking into reasonably cost 681 00:31:48,560 --> 00:31:50,320 Speaker 1: healthcare plans, one of the things that a lot of 682 00:31:50,320 --> 00:31:53,360 Speaker 1: people have found, as you know, as their income grows, 683 00:31:53,600 --> 00:31:58,720 Speaker 1: the healthcare marketplace becomes prohibitively expensive. It's just really difficult 684 00:31:58,720 --> 00:32:01,040 Speaker 1: to afford the premiums, much less the out of pocket 685 00:32:01,080 --> 00:32:04,880 Speaker 1: costs to come with healthcare plans on the exchange if 686 00:32:04,960 --> 00:32:07,640 Speaker 1: you make a decent income. And so people have been 687 00:32:07,920 --> 00:32:10,640 Speaker 1: turning towards health sharing companies, and they can be a 688 00:32:10,640 --> 00:32:13,800 Speaker 1: good alternative for low cost healthcare for certain people. But 689 00:32:13,880 --> 00:32:16,040 Speaker 1: it's really important to know what you're signing up for. 690 00:32:16,120 --> 00:32:18,000 Speaker 1: When you're signing up for one of these plans, it's 691 00:32:18,000 --> 00:32:22,640 Speaker 1: not actually insurance, although these plans function a lot like insurance. 692 00:32:22,800 --> 00:32:25,680 Speaker 1: So for folks with low to moderate income levels, healthcare 693 00:32:25,720 --> 00:32:27,640 Speaker 1: dot gov is the best place, especially right now, for 694 00:32:27,680 --> 00:32:29,600 Speaker 1: a lot of folks to turn. But those health scaring 695 00:32:29,600 --> 00:32:32,200 Speaker 1: companies are worth looking into for a lot of people. 696 00:32:32,440 --> 00:32:34,760 Speaker 1: If the if you run the numbers and it's like, oh, man, 697 00:32:34,840 --> 00:32:37,600 Speaker 1: I can't afford that, but yeah, Matt, we have an 698 00:32:37,640 --> 00:32:40,080 Speaker 1: article up on the website about meta share. You've been 699 00:32:40,120 --> 00:32:42,720 Speaker 1: remembered there for a lot of years. I recently joined 700 00:32:42,800 --> 00:32:45,000 Speaker 1: up and that's a good place for a lot of 701 00:32:45,000 --> 00:32:47,640 Speaker 1: folks to turn if you fit the requirements totally. And 702 00:32:47,920 --> 00:32:50,240 Speaker 1: Brittany also, when it comes to your investing question, the 703 00:32:50,280 --> 00:32:53,080 Speaker 1: answer is yes, keep investing. You're asking if it's going 704 00:32:53,120 --> 00:32:54,840 Speaker 1: to be enough for you to invest within just the 705 00:32:54,880 --> 00:32:57,120 Speaker 1: i ra A like we mentioned with Argent, hopefully you 706 00:32:57,360 --> 00:32:59,720 Speaker 1: heard us answer his question earlier, you can do a 707 00:32:59,800 --> 00:33:03,040 Speaker 1: lot out of retirement damage by maxing out just your IRA. 708 00:33:03,200 --> 00:33:06,520 Speaker 1: You can become a millionaire even if you never invest 709 00:33:06,600 --> 00:33:10,480 Speaker 1: beyond just the roth IRA and max that junk completely true. Yeah, 710 00:33:10,520 --> 00:33:12,600 Speaker 1: but at your income level though, don't even think about 711 00:33:12,600 --> 00:33:15,920 Speaker 1: putting money into a traditional IRA because the tax break 712 00:33:15,960 --> 00:33:18,760 Speaker 1: it's gonna be so minuscule. And with your creative pursuits, 713 00:33:18,800 --> 00:33:21,240 Speaker 1: it sounds like your income should only continue to rise 714 00:33:21,320 --> 00:33:23,800 Speaker 1: from what you're making currently. And the same is also 715 00:33:23,840 --> 00:33:25,440 Speaker 1: gonna be true of tax rates. We're only going to 716 00:33:25,480 --> 00:33:28,040 Speaker 1: see those go up, and so pay that little bit 717 00:33:28,040 --> 00:33:30,360 Speaker 1: of tax now and get the dollars that you invest 718 00:33:30,480 --> 00:33:33,480 Speaker 1: in that tax sheltered roth IRA. Just be sure to 719 00:33:33,560 --> 00:33:36,480 Speaker 1: max that out. At six thousand dollars each year, that's 720 00:33:36,520 --> 00:33:38,280 Speaker 1: a big chunk of money. And so if you want 721 00:33:38,320 --> 00:33:40,080 Speaker 1: to kind of break that into smaller pieces, you're looking 722 00:33:40,120 --> 00:33:42,760 Speaker 1: at a hundred and fifteen dollars a week. And even still, 723 00:33:42,800 --> 00:33:45,280 Speaker 1: I don't want it to sound like we're downplaying how 724 00:33:45,360 --> 00:33:47,520 Speaker 1: much money that is, because a hundred fifteen bucks every 725 00:33:47,560 --> 00:33:49,720 Speaker 1: single week, that is a lot of money. But if 726 00:33:49,760 --> 00:33:52,760 Speaker 1: you are able to do that every single week, that 727 00:33:52,800 --> 00:33:54,640 Speaker 1: will be something that you are glad that you did 728 00:33:54,720 --> 00:33:56,920 Speaker 1: years from now. Yes, And at the very end of 729 00:33:57,000 --> 00:34:00,120 Speaker 1: Britney's question, she asked about self employed costs, like what 730 00:34:00,160 --> 00:34:02,520 Speaker 1: else is she taking on that she hasn't thought about. 731 00:34:02,800 --> 00:34:05,200 Speaker 1: And that's a good question. We would say, you definitely 732 00:34:05,200 --> 00:34:08,640 Speaker 1: want to think about vision and dental coverage. But here's 733 00:34:08,640 --> 00:34:10,600 Speaker 1: the deal, because those don't come along with the healthcare 734 00:34:10,680 --> 00:34:13,800 Speaker 1: coverage on your you know, on the health care exchange 735 00:34:13,800 --> 00:34:15,439 Speaker 1: that you're getting. You have to buy a separate plan 736 00:34:15,520 --> 00:34:18,200 Speaker 1: for those things. But the thing is, we would say, 737 00:34:18,360 --> 00:34:21,080 Speaker 1: self ensure have more cash in the bank. Uh, Matt, 738 00:34:21,120 --> 00:34:23,080 Speaker 1: you recently got your eyes checked out, it was what 739 00:34:23,120 --> 00:34:28,320 Speaker 1: eighty bucks and then you got your any glasses for 740 00:34:28,360 --> 00:34:30,360 Speaker 1: fifty bucks and you got three pairs or something like that. 741 00:34:30,360 --> 00:34:32,440 Speaker 1: I mean it's fifty bucks with the special coating. Okay, 742 00:34:32,600 --> 00:34:35,640 Speaker 1: so it's it's really really cheap too a water resistant 743 00:34:36,080 --> 00:34:40,360 Speaker 1: their fancy all plastics waters right. Yeah. So it's so 744 00:34:40,520 --> 00:34:43,120 Speaker 1: it's just so inexpensive to do those things on your own. 745 00:34:43,160 --> 00:34:46,120 Speaker 1: You don't need coverage for those things. Same with a 746 00:34:46,200 --> 00:34:49,360 Speaker 1: dental plan, like you know, find a dentist that will 747 00:34:49,600 --> 00:34:52,480 Speaker 1: for a cash price. You know, do your your dental 748 00:34:52,480 --> 00:34:54,879 Speaker 1: cleaning once or twice a year, and just be sure 749 00:34:54,920 --> 00:34:57,120 Speaker 1: to floss every day exactly, take care of your take 750 00:34:57,160 --> 00:35:00,520 Speaker 1: care your teeth. Thing is highly underrated. And you know, 751 00:35:00,560 --> 00:35:03,520 Speaker 1: I guess one other maybe self employed benefit that you're 752 00:35:03,520 --> 00:35:05,719 Speaker 1: not going to have access to life insurance, but that's 753 00:35:05,760 --> 00:35:08,080 Speaker 1: not really applicable because it sounds like Britney doesn't have 754 00:35:08,080 --> 00:35:11,080 Speaker 1: anyone who depends on her income. Too young to consider that. Yeah, 755 00:35:11,120 --> 00:35:13,239 Speaker 1: and you know, no snacks at the workplace office, No, 756 00:35:13,520 --> 00:35:15,960 Speaker 1: no water cooler, although she's still for the moment being, 757 00:35:16,040 --> 00:35:17,880 Speaker 1: you know, I still living at home with that, And 758 00:35:17,920 --> 00:35:20,160 Speaker 1: so maybe sneak a couple of granola bars might feel 759 00:35:20,200 --> 00:35:23,719 Speaker 1: like you're taking advantage of the nature valley bar that 760 00:35:23,760 --> 00:35:26,000 Speaker 1: you might pick up if you were employed somewhere. But Brittany, 761 00:35:26,040 --> 00:35:27,880 Speaker 1: we hope that points you in the right direction. And 762 00:35:27,960 --> 00:35:30,280 Speaker 1: it sounds like you are thinking about the right things 763 00:35:30,520 --> 00:35:33,400 Speaker 1: ahead of time, which we are glad to hear. All Right, Joe, 764 00:35:33,480 --> 00:35:34,880 Speaker 1: let's get to our next question. This is from a 765 00:35:34,920 --> 00:35:37,960 Speaker 1: listener who is further along in his financial journey and 766 00:35:38,040 --> 00:35:39,800 Speaker 1: he wants to know if it makes sense to pay 767 00:35:39,800 --> 00:35:44,239 Speaker 1: off a mortgage and which one should he pay off first. Hi, 768 00:35:44,360 --> 00:35:47,560 Speaker 1: Joelan Matt, this is Patent Bend, Oregon. I love listening 769 00:35:47,560 --> 00:35:50,320 Speaker 1: to your show while running my dog. I had a 770 00:35:50,400 --> 00:35:54,759 Speaker 1: quick question about paying off my primary residence versus paymoff 771 00:35:55,000 --> 00:35:59,640 Speaker 1: a rental property. My wife and I both fully fund 772 00:35:59,640 --> 00:36:03,759 Speaker 1: our retirement accounts, including maxing out my four oh one 773 00:36:03,840 --> 00:36:07,719 Speaker 1: K and having rath I raise for both of us. 774 00:36:09,200 --> 00:36:12,840 Speaker 1: We owe about ninety thou left on our primary residents 775 00:36:13,000 --> 00:36:16,240 Speaker 1: and about a hundred and twenty eight on a rental property. 776 00:36:16,520 --> 00:36:18,759 Speaker 1: What did you get your opinion? Which was better to 777 00:36:18,920 --> 00:36:23,920 Speaker 1: pay off the primary residence or pay off the rental property. 778 00:36:24,040 --> 00:36:28,239 Speaker 1: The interest rate on the primary residents is slightly better 779 00:36:28,280 --> 00:36:32,719 Speaker 1: than the rental property. Thanks alright, Pat, First, I gotta 780 00:36:32,719 --> 00:36:34,640 Speaker 1: say I like that you're able to multitask in that way, 781 00:36:34,719 --> 00:36:37,400 Speaker 1: running with your dog while listening to how the money is. 782 00:36:37,400 --> 00:36:40,120 Speaker 1: It's impressive if if it was you, Well, you've got 783 00:36:40,120 --> 00:36:42,120 Speaker 1: cats now that you don't have to walk cats. Do 784 00:36:42,160 --> 00:36:44,480 Speaker 1: you know? My neighbor actually has a leash for their 785 00:36:44,480 --> 00:36:46,520 Speaker 1: cat and they do sometimes walk their cat. So we 786 00:36:46,560 --> 00:36:48,040 Speaker 1: got this leash for the cat and we just hang 787 00:36:48,080 --> 00:36:50,080 Speaker 1: it on the peg on the wall because that's all 788 00:36:50,080 --> 00:36:52,640 Speaker 1: it does. Yes, I'm not planning to become that kind 789 00:36:52,680 --> 00:36:56,000 Speaker 1: of cat person personally, but yeah, Pat, congrats on crushing 790 00:36:56,000 --> 00:36:59,160 Speaker 1: it with your retirement account contributions as well. Most of 791 00:36:59,200 --> 00:37:01,440 Speaker 1: the time when will ask this question, when people want 792 00:37:01,480 --> 00:37:03,759 Speaker 1: to pay off their mortgage early weeks. We usually say 793 00:37:03,920 --> 00:37:06,440 Speaker 1: it's a fantastic goal, but we prefer for you to 794 00:37:06,480 --> 00:37:09,960 Speaker 1: consider other options first. We'd say, like contributing more to 795 00:37:10,160 --> 00:37:14,120 Speaker 1: retirement accounts that will, at least by historical standards, provide 796 00:37:14,480 --> 00:37:16,719 Speaker 1: a nicer return for you over the years. There's this 797 00:37:16,760 --> 00:37:19,960 Speaker 1: opportunity cost that you incur when it comes to paying 798 00:37:19,960 --> 00:37:22,239 Speaker 1: off a mortgage that's you know, especially in the three 799 00:37:22,239 --> 00:37:26,040 Speaker 1: percent range, which hopefully yours is bad. Hopefully you've refinanced 800 00:37:26,040 --> 00:37:29,719 Speaker 1: at some point and your mortgage is now at one 801 00:37:29,760 --> 00:37:32,440 Speaker 1: of these rock bottom rates that we've been seeing over 802 00:37:32,440 --> 00:37:34,919 Speaker 1: the past year and a half, because you're gonna miss 803 00:37:34,920 --> 00:37:36,600 Speaker 1: out on the growth of that money that you'd get 804 00:37:36,640 --> 00:37:39,600 Speaker 1: from sticking more of those funds in the market. That's 805 00:37:39,600 --> 00:37:42,000 Speaker 1: our traditional answer, but yeah, we think there's a little 806 00:37:42,000 --> 00:37:44,560 Speaker 1: more nuance required when it comes to your question. Yeah, 807 00:37:44,640 --> 00:37:46,160 Speaker 1: and it makes sense to that the interest rate on 808 00:37:46,200 --> 00:37:48,200 Speaker 1: your primary home it's a little bit better than the 809 00:37:48,200 --> 00:37:51,320 Speaker 1: one on your rental property. There's usually half a point difference. 810 00:37:51,600 --> 00:37:53,480 Speaker 1: But pat, as far as you know, when it makes 811 00:37:53,480 --> 00:37:55,840 Speaker 1: sense to pay off the mortgage on that property, if 812 00:37:55,840 --> 00:37:58,200 Speaker 1: you're getting close to retiring and you know you're looking 813 00:37:58,239 --> 00:38:00,640 Speaker 1: to really stabilize and reduce the amount of risk that 814 00:38:00,680 --> 00:38:04,360 Speaker 1: you're exposed to, then that makes sense. Or maybe you 815 00:38:04,400 --> 00:38:07,000 Speaker 1: know if you're years from retirement, but you just simply 816 00:38:07,080 --> 00:38:09,480 Speaker 1: want to have that piece of mind that comes from 817 00:38:09,520 --> 00:38:13,160 Speaker 1: reducing your overall debtload, knowing that it probably isn't the 818 00:38:13,200 --> 00:38:15,959 Speaker 1: most fully optimized route to take. And that last point 819 00:38:16,000 --> 00:38:17,960 Speaker 1: is a big one, because it's okay to not be 820 00:38:18,040 --> 00:38:21,080 Speaker 1: fully optimized, but you want to make that decision knowing 821 00:38:21,120 --> 00:38:23,839 Speaker 1: the trade offs. Uh. And for you, if being debt free, 822 00:38:23,920 --> 00:38:26,759 Speaker 1: if that's the main goal and you're okay not optimizing, 823 00:38:27,520 --> 00:38:29,279 Speaker 1: then we would recommend for you to go ahead and 824 00:38:29,320 --> 00:38:31,200 Speaker 1: pay off that mortgage. Yeah. A prior guest we had 825 00:38:31,239 --> 00:38:33,960 Speaker 1: on the show, Andy Hill, he podcasts over at Marriage, 826 00:38:34,000 --> 00:38:37,839 Speaker 1: Kids and Money, and he has highlighted why he paid 827 00:38:37,840 --> 00:38:40,520 Speaker 1: off his mortgage in like four years. And he's a young, 828 00:38:40,680 --> 00:38:43,800 Speaker 1: young fellow too, And so that's something that Matt and I, 829 00:38:43,960 --> 00:38:45,680 Speaker 1: I don't want to say we disagree with him on it, 830 00:38:45,719 --> 00:38:47,520 Speaker 1: but that's just not the route we took. And I 831 00:38:47,600 --> 00:38:50,480 Speaker 1: understand completely why he did what he did totally. But 832 00:38:50,560 --> 00:38:53,399 Speaker 1: there's like, what different strokes for different folks maybe, And so, yeah, 833 00:38:53,400 --> 00:38:56,239 Speaker 1: paying off a mortgage is something that we don't prioritize 834 00:38:56,320 --> 00:38:58,960 Speaker 1: until you're in what we call money gear number seven. 835 00:38:59,120 --> 00:39:02,439 Speaker 1: And that's because the mortgage on your properties they're really 836 00:39:02,440 --> 00:39:05,239 Speaker 1: low interest rates, and it's also giving you a tax 837 00:39:05,360 --> 00:39:07,680 Speaker 1: right off. So instead we would say, can you use 838 00:39:07,719 --> 00:39:09,840 Speaker 1: the money you would have taken to pay the mortgage 839 00:39:10,280 --> 00:39:13,640 Speaker 1: to increase cash flow, maybe by buying another rental property 840 00:39:13,680 --> 00:39:16,360 Speaker 1: if that's something you'd want to do, or to passively 841 00:39:16,400 --> 00:39:19,480 Speaker 1: invest in the market inside of a brokerage account since 842 00:39:19,520 --> 00:39:21,960 Speaker 1: you're already maxing out your retirement accounts. So yeah, Pat, 843 00:39:22,000 --> 00:39:23,879 Speaker 1: i'd encourage you to read through our money gears again, 844 00:39:23,920 --> 00:39:25,800 Speaker 1: will link to them in the show notes. It's worth 845 00:39:25,840 --> 00:39:28,239 Speaker 1: making sure that you've gone through all of these other 846 00:39:28,320 --> 00:39:32,560 Speaker 1: steps first before prioritizing, Yeah, that mortgage payoff, But assuming 847 00:39:32,600 --> 00:39:34,239 Speaker 1: that you're gonna pay off one of those mortgages, no 848 00:39:34,280 --> 00:39:37,120 Speaker 1: matter what, which one you pay off first depends on 849 00:39:37,200 --> 00:39:40,799 Speaker 1: a few things. Uh specifically though, taxes, and this is 850 00:39:40,800 --> 00:39:42,719 Speaker 1: one of those areas where we obviously don't know all 851 00:39:42,760 --> 00:39:44,439 Speaker 1: of your details, so we would recommend that you reach 852 00:39:44,480 --> 00:39:47,799 Speaker 1: out to a tax professional on this topic. But the 853 00:39:47,840 --> 00:39:50,120 Speaker 1: answer likely depends on whether or not you take the 854 00:39:50,160 --> 00:39:54,280 Speaker 1: standard deduction, because if you're like around n of Americans 855 00:39:54,280 --> 00:39:57,000 Speaker 1: and you take the standard deduction, then you'll likely want 856 00:39:57,000 --> 00:39:59,520 Speaker 1: to pay off your primary residence since you're not getting 857 00:39:59,719 --> 00:40:02,239 Speaker 1: us a civic tax deduction for the interest that you're 858 00:40:02,239 --> 00:40:05,359 Speaker 1: paying there. However, if you itemize your deductions and you're 859 00:40:05,400 --> 00:40:08,080 Speaker 1: already uh, you know, you're calling back every penny that 860 00:40:08,120 --> 00:40:10,080 Speaker 1: you can from the I R S, then we would 861 00:40:10,080 --> 00:40:12,640 Speaker 1: recommend paying off the rental mortgage since it sounds like 862 00:40:12,680 --> 00:40:16,960 Speaker 1: that you're paying a slightly higher rate on that property. Yes, yes, agreed, 863 00:40:17,160 --> 00:40:20,160 Speaker 1: and you know, pat Just to sum it up, we 864 00:40:20,200 --> 00:40:22,720 Speaker 1: would say having no debt is definitely the most secure 865 00:40:22,719 --> 00:40:25,520 Speaker 1: financial position that you can be in. We don't think 866 00:40:25,520 --> 00:40:27,600 Speaker 1: having debt is the best thing ever, but but we're 867 00:40:27,640 --> 00:40:30,920 Speaker 1: also not haters when it comes to low interest debt 868 00:40:30,960 --> 00:40:34,440 Speaker 1: on your house. We also we don't promote endless borrowing 869 00:40:34,480 --> 00:40:36,839 Speaker 1: to buy a dream home that's beyond your means, and 870 00:40:36,880 --> 00:40:38,760 Speaker 1: we want people to bring more money to the table 871 00:40:38,920 --> 00:40:41,800 Speaker 1: when they purchase a home in the first place. We 872 00:40:41,840 --> 00:40:43,960 Speaker 1: don't want people to get enamored with leverage, and we 873 00:40:43,960 --> 00:40:45,840 Speaker 1: don't want to praise it like all the stuff I 874 00:40:45,840 --> 00:40:48,719 Speaker 1: can buy Yeah, finally puy as long as I am 875 00:40:48,760 --> 00:40:50,640 Speaker 1: paying interest on it. If finally put three percent down 876 00:40:50,640 --> 00:40:52,880 Speaker 1: on my home, then you know, that's just put you 877 00:40:52,920 --> 00:40:55,600 Speaker 1: in a financially insecure place. But that's that's not where 878 00:40:55,600 --> 00:40:57,400 Speaker 1: you're at. That's not the position you're in, patent. So 879 00:40:57,440 --> 00:40:59,600 Speaker 1: we would say, if you're comfortable with how much you 880 00:40:59,640 --> 00:41:01,759 Speaker 1: have in for your future, and you also have this 881 00:41:01,800 --> 00:41:04,160 Speaker 1: strong desire to be debt free, go ahead and pay 882 00:41:04,160 --> 00:41:06,919 Speaker 1: off one of those mortgages. And yeah, like Matt said that, 883 00:41:06,920 --> 00:41:09,680 Speaker 1: the tax angle is probably the what it's going to 884 00:41:09,760 --> 00:41:13,480 Speaker 1: come down to for which one you decide to tackle first. 885 00:41:13,719 --> 00:41:15,120 Speaker 1: That's right, Joel. Let's go ahead and get back to 886 00:41:15,120 --> 00:41:17,719 Speaker 1: our beer. This episode, you and I enjoyed a beer 887 00:41:17,800 --> 00:41:20,680 Speaker 1: called Really Green Street. This is a double I p 888 00:41:20,840 --> 00:41:23,600 Speaker 1: a by Trillium and Other Half. What are your thoughts 889 00:41:23,600 --> 00:41:25,439 Speaker 1: on this one? I'll tell you this, I'm gonna start 890 00:41:25,480 --> 00:41:27,840 Speaker 1: praying tonight for a lifetime supply of this beer, like 891 00:41:27,960 --> 00:41:31,520 Speaker 1: in our beer fridge, because just Trillium in general. Yeah, 892 00:41:31,920 --> 00:41:34,760 Speaker 1: just everything we've had by them over the past several 893 00:41:34,760 --> 00:41:37,640 Speaker 1: episodes has been amazing. Yeah, it really has been so big. 894 00:41:37,680 --> 00:41:40,359 Speaker 1: Thanks to Ali for sending these beers our way. It's 895 00:41:40,360 --> 00:41:42,759 Speaker 1: been a treat for sure. I would say drinking this 896 00:41:42,800 --> 00:41:45,839 Speaker 1: one is like a fluffy, fluffy, hot flavored cloud. That's 897 00:41:45,880 --> 00:41:48,359 Speaker 1: the best way I can describe it, because it's like it's, uh, 898 00:41:48,640 --> 00:41:51,560 Speaker 1: it soaked my tongue with just like hop goodness. It was. 899 00:41:51,840 --> 00:41:54,320 Speaker 1: It was super concentrated, but it was also it wasn't 900 00:41:54,880 --> 00:41:57,600 Speaker 1: overly dense, and I don't know, man like, that's just 901 00:41:57,640 --> 00:41:59,440 Speaker 1: kind of what I'm used to from these two breweries, 902 00:41:59,480 --> 00:42:01,279 Speaker 1: and so for them to team up and make this 903 00:42:01,360 --> 00:42:03,759 Speaker 1: beer just like it makes me happy. So you said 904 00:42:03,760 --> 00:42:05,560 Speaker 1: hot goodness, which makes me think of like when you 905 00:42:05,560 --> 00:42:07,720 Speaker 1: eat a really good, like a really really healthy salad 906 00:42:07,880 --> 00:42:10,080 Speaker 1: like kale and other greens, which actually I had a 907 00:42:10,080 --> 00:42:12,160 Speaker 1: little little bit of today for lunch. Maybe that's why 908 00:42:12,200 --> 00:42:14,640 Speaker 1: this is on my mind. But oftentimes it has like 909 00:42:14,680 --> 00:42:18,160 Speaker 1: a bitterness to it because these greens, you know, there's 910 00:42:18,200 --> 00:42:20,760 Speaker 1: so much goodness packed into this food that you're eating 911 00:42:21,280 --> 00:42:23,200 Speaker 1: that has got to be a little bit bitter because 912 00:42:23,200 --> 00:42:24,839 Speaker 1: there's a lot of vitamins and stuff like that going 913 00:42:24,840 --> 00:42:25,960 Speaker 1: on in there. That's what I feel like with this 914 00:42:26,000 --> 00:42:29,200 Speaker 1: specific beer, that they have such a large quantity of 915 00:42:29,239 --> 00:42:32,680 Speaker 1: hops in this that it almost slightly eclipses some of 916 00:42:32,680 --> 00:42:36,319 Speaker 1: the sweeter notes, and it's kind of bordering on that 917 00:42:36,400 --> 00:42:39,759 Speaker 1: bitter edge, that bitter edge, hot territory, that good kind 918 00:42:39,760 --> 00:42:42,200 Speaker 1: of bitter, right, yes, no, yeah, there's there's a way 919 00:42:42,239 --> 00:42:45,959 Speaker 1: in which Beers thoroughly enjoyed my salad earlier today at lunch, 920 00:42:46,000 --> 00:42:48,239 Speaker 1: and I am thoroughly enjoying the speed. It's it's the 921 00:42:48,239 --> 00:42:51,239 Speaker 1: good kind of bitter combined with that, like, uh, those 922 00:42:51,320 --> 00:42:52,759 Speaker 1: juice tones like when you're working on it's like, oh, 923 00:42:52,920 --> 00:42:56,560 Speaker 1: the good hurt. This is the good bitter. Uh, not 924 00:42:56,600 --> 00:42:58,680 Speaker 1: like bitter beer face, you know the old commercials. Was 925 00:42:58,719 --> 00:43:02,040 Speaker 1: it like Heneken or something? Though, yeah, like a decade ago. 926 00:43:02,680 --> 00:43:04,640 Speaker 1: That's not what we're talking about here. We're talking about 927 00:43:04,680 --> 00:43:06,680 Speaker 1: like that good bitter for sure, for sure. Yeah, So 928 00:43:06,719 --> 00:43:09,960 Speaker 1: thanks again, Ali, seriously, Uh, it was great Beers and 929 00:43:10,000 --> 00:43:12,879 Speaker 1: this one was excellent in its own right. So all right, Matt, 930 00:43:12,920 --> 00:43:15,840 Speaker 1: that's gonna do it for for this episode. For listeners 931 00:43:15,880 --> 00:43:18,319 Speaker 1: who want to submit the question for a future ask 932 00:43:18,480 --> 00:43:20,560 Speaker 1: htm episode, well we would love to hear it. Just 933 00:43:20,600 --> 00:43:23,120 Speaker 1: go to how to money dot com slash ask. There 934 00:43:23,120 --> 00:43:25,840 Speaker 1: are simple directions for recording a voice memo sending it 935 00:43:25,920 --> 00:43:28,040 Speaker 1: our way via email and hopefully we can take it 936 00:43:28,120 --> 00:43:29,839 Speaker 1: on the show in a couple of weeks. That's all right, 937 00:43:29,920 --> 00:43:32,040 Speaker 1: So that's gonna be it for this episode, Joel, until 938 00:43:32,080 --> 00:43:35,120 Speaker 1: next time, best Friends Out, Best Friends Out,